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4 Stocks This Week (Industrial Play) [13 December 2019] – CITIC Envirotech; SBS Transit; VICOM; SIA Engineering

2 of 4 companies are majority-owned by ComfortDelGro.


The industrial sector on the Singapore Exchange (SGX) may not be the most popular sector that Singapore investors think about but it’s definitely worth taking a deeper look. With more than 200 stocks listed in the industrial sector across different segments such as industrial conglomerates, construction & engineering, air freight & logistics, transportation, aerospace & defence and human resource & employment services, there are hundreds of investment options that Singapore investors can consider.

In this week’s edition of 4 Stocks This Week, we take a closer look at the best performing yield-to-date (YTD) stocks in the industrial sector for 2019.

CITIC Envirotech (SGX: CEE)

Incorporated in 2003, CITIC Envirotech is an environmental protection solutions provider primarily engaged in environmental services, including engineering, investment in water assets, river restoration, wastewater treatment and water recycling, hazardous waste treatment, maintenance services, and membrane manufacturing.

CITIC Envirotech is also a subsidiary of CITIC Limited, which is one of the largest conglomerates in China, with businesses than span financial services, natural resources and energy, manufacturing, as well as real estate and infrastructure.

At the current last done price of $0.535, CITIC Envirotech stock price have surged up 44.9% for the year, after a privatisation bid by its parent company. This makes it the best performing industrial stock on SGX for 2019 thus far. Prior to the news of the privatisation bid, the stock was trading in the region of $0.30 to $0.37.

Its current parent company, CKM (Cayman) CO.,Ltd currently owns about 56% of the company.

SBS Transit (SGX: S61)

A well-known company, SBS Transit is a leading transport operator in Singapore. It not only operates the majority of public buses on the road, but also runs the Downtown Line, North East Line, Sengkang LRT and Punggol LRT.

SBS Transit is 74% owned by ComfortDelGro, another major transport company.

Since the start of the year, SBS Transit has seen a total return of 41.9% for the year. Over a 3-year period, total returns are at 97.8%.

With an upcoming fare increase, SBS Transit should see its revenue increase for the following year. The company is currently trading at a P/E ratio of 12.8 and a dividend yield of 3.8%. Share price is at $3.68 today, up from $2.69 at the start of the year.

VICOM Ltd (SGX: V01)

Similar to SBS Transit, VICOM is also majority-owned by ComfortDelGro. It’s a leading provider in inspection and technical testing services for vehicles in Singapore. It was incorporated in 1981 and was listed on the exchange in 1995.

2019 has been a good year for the company as it has seen its stock price increases from $5.98 at the start of the year to $7.70 as of the time of writing. Total return for the stock is at 35.7% with total 3-year return at 59.7%. The company is currently trading at a P/E of 19.2 and a dividend yield of 4.8%.

SIA Engineering (SGX: S59)

SIA Engineering provides Maintenance, Repair and Operations (MRO) support to both SIA and third party airlines, among other aerospace engineering solutions. At Singapore Changi Airport, the company provides line maintenance services to more than 50 airlines passing through Singapore. Beyond Singapore, it also provide line maintenance support to airports in Hong Kong, Indonesia, Japan, Philippines, United States and Vietnam.

Earlier this week, it was reported that SIA Engineering have signed an agreement today for SIAEC to provide engine maintenance services to Safran Aircraft Engines, a French multinational aircraft engine company.

Since the start of the year, SIA Engineering has delivered a total return of 28.4%. Its dividend yield is currently at 3.9% and the company is trading at a P/E ratio of 18.6.

Read Also: [Beginners’ Guide] How To Start Investing In Singapore

If you like to find out more about the top performing stocks in the industrial sector, you can read up this SGX Market Updates article.

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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.