When it comes to investing in technology stocks, the SGX may not be the first exchange that comes to mind when screening for exciting or suitable companies.
While it may be true that the Facebooks and Alphabets, or the Alibabas and Tencents, may be listed in the US, Hong Kong and China, SGX still offers a compelling tech play – to invest in the companies that manufacture the hardware and semiconductors that the “tech giants” will use.
On SGX’s StockFacts platform, we found that there were 70 companies listed under the Software and IT Services (17), Technology Equipment (46) and Telecommunications Services (7) sectors. 15 of these companies have a market capitalisation of over $100 million, and of these, the five best performers delivered an average total return of 77.7% in the year-to-date-2019.
We would have featured all five of these companies, but given the column’s angle, we zoom in on the four best performing tech stocks on SGX in 2019, so far.
AEM Holdings Ltd (SGX: AWX)
With a market capitalisation of $461 million, AEM provides handling and test solutions to the most advance manufacturers in the world. Its customers mainly produce microprocessors, high-speed communications, IOT devices and solar cells.
In the year-to-date 2019, AEM has achieved a total return of 126.6%. Its stellar performance isn’t just limited to this year either. Its 3-year total return is 1499.4% and 5-year total return comes in at 2038.9%.
In its most recent 3Q2019 results announcement on 6 November 2019, it provided guidance on its revenue figures, which it expects to be $305 million to $315 million. This will be at least 16.3% higher than its 2018 revenue of $262.3 million.
At the same time, its profit before tax for the first nine months was $43.5 million, already higher than its profit before tax for the entire 2018 of $40.0 million.
Hi-P International Limited (SGX: H17)
Fast-growing integrated contract manufacturers, Hi-P has a market capitalisation of $1.2 billion. The group’s customers hail from diverse industries including wireless telecommunications, consumer electronics, computing, IOT, medical devices and industrial devices. Hi-P manufacturing footprint spans across five locations in China.
So far, in 2019, Hi-P has delivered a total return of 81.3%. It has similarly performed well over the past 3-year and 5-year period, achieving a total return of 277.1% and 182.4% in the respective periods.
In its 3Q2019 results, announced on 30 October 2019, it delivered 1.1% increase in revenue and 3.1% increase in profit after tax.
Procurri Corporation Limited (SGX: BVQ)
Procurri was listed as a result of a spin-off of a business unit of another listed company – DeClout Limited – in 2015. Interestingly, DeClout was privatised earlier in 2019.
With a market capitalisation of $122 million, Procurri mainly operates in the business of providing 1) lifecycle services for IT hardware and equipment and 2) data centre equipment such as servers, storage and networking equipment.
In the year-to-date 2019, it has achieved a total return of 68.5%. It’s 3-year total return comes in at 8.6% and its 5-year total return is 0%.
In its most recent 3Q2019 announcement, on 4 November 2019, it delivered a slight 2.1% decrease in revenue and a 13.6% increase in net profit.
UMS Holdings Limited (SGX: 558)
UMS is a precision engineering group that specialises in high-precision front-end semiconductor components, electromechanical assembly and final testing services. Its customers are mainly from the semiconductor, electronic, machine tools, aerospace and oil and gas industries.
In the year-to-date 2019, UMS, which has a market capitalisation of $477 million, has delivered a total return of 66.0%. Its 3-year and 5-year total return are 121.2% and 204.5% respectively.
Similar to the other companies on the list, it has also done well in its latest 3Q2019 results announcement, clocking in an 18.1% increase in net profit and 12% increase in revenue for its 3rd quarter.
FSM INVEST Expo 2020
FSMOne.com believes in INVESTING, Fundamentally – investors should first understand the basics of investing before they get started, and it is also important for them to focus on fundamentals in the research perspective of investing.
Join FSMOne.com at FSM INVEST Expo 2020 on 18 January 2020 (Saturday) from 10am to 6pm at Suntec Convention Centre (Hall 403)!
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.