Origins of the SGX Multi-Baggers

In my previous blog post, I identified all the multi-baggers that are listed on the Singapore Exchange (SGX) that retained their original stock codes between May 2006 and May 2014. I also categorised them according to price ranges to identify which price ranges are most likely to produce multi-baggers. In this blog post, I have categorised the multi-baggers according to their sectors (as classified by SGX). Here is the list of multi-baggers with their sector identification. And thanks to Uncle CreateWealth8888's suggestion, I have also added their share prices during the lows of the Global Financial Crisis (GFC) in Mar 2009.

Name	Sector	May-06	Mar-09	May-14	% Gain
RH Petrogas Ltd	MFG	0.060	0.850	0.660	1000%
Design Studio Group Ltd	MFG	0.045	0.180	0.480	967%
Yongnam Holdings Ltd	CONS	0.025	0.080	0.240	860%
Breadtalk Group Ltd	MFG	0.195	0.300	1.450	644%
Ramba Energy Ltd	TSC	0.085	0.125	0.490	476%
Super Group Ltd	MFG	0.600	0.365	3.390	465%
Vicom Ltd	SERV	1.040	1.530	5.830	461%
Swissco Holdings Ltd	TSC	0.075	0.080	0.415	453%
Chinavision Media Group Ltd	MFG	0.033	0.124	0.177	439%
MTQ Corporation Ltd	MFG	0.380	0.500	1.975	420%
Straco Corporation Ltd	SERV	0.125	0.075	0.645	416%
Lian Beng Group Ltd	CONS	0.155	0.110	0.705	355%
Casa Holdings Ltd	COM	0.045	0.035	0.200	344%
Raffles Medical Group Ltd	SERV	0.800	0.770	3.500	338%
Transit-Mixed Concrete Ltd	MFG	0.095	0.170	0.415	337%
Rowsley Ltd	SERV	0.065	0.035	0.280	331%
Loyz Energy Ltd	COM	0.075	0.120	0.315	320%
ABR Holdings Ltd	HOTEL	0.215	0.180	0.880	309%
Jardine Cycle & Carriage Ltd	COM	10.800	9.000	43.530	303%
Progen Holdings Ltd	CONS	0.040	0.060	0.160	300%
King Wan Corporation Ltd	CONS	0.075	0.060	0.295	293%
Genting Singapore PLC	SERV	0.360	0.425	1.330	269%
Nobel Design Holdings Ltd	SERV	0.155	0.060	0.560	261%
Poh Tiong Choon Logistics Ltd	TSC	0.170	0.175	0.605	256%
OKP Holdings Ltd	CONS	0.085	0.270	0.300	253%
Lee Metal Group Ltd	COM	0.120	0.080	0.410	242%
Superbowl Holdings Ltd	SERV	0.220	0.100	0.750	241%
Challenger Technologies Ltd	COM	0.160	0.165	0.530	231%
LHT Holdings Ltd	MFG	0.040	0.035	0.131	228%
Tye Soon Ltd	COM	0.060	0.050	0.195	225%
Tuan Sing Holdings Ltd	PROP	0.105	0.070	0.340	224%
Jardine Matheson Hldgs Ltd	COM	24.031	20.902	76.723	219%
United Envirotech Ltd	SERV	0.395	0.120	1.250	216%
Chip Eng Seng Corporation Ltd	CONS	0.235	0.140	0.735	213%
Jardine Strategic Hldgs Ltd	COM	14.519	11.139	43.919	203%
Giken Sakata (S) Ltd	MFG	0.100	0.020	0.295	195%
Heeton Holdings Ltd	PROP	0.230	0.220	0.670	191%
Dairy Farm Int'l Holdings Ltd	COM	4.506	5.507	13.067	190%
Koh Brothers Group Ltd	CONS	0.110	0.125	0.310	182%
Spindex Industries Ltd	MFG	0.180	0.200	0.490	172%
Tianjin Zhong Xin Pharm Group	MFG	0.501	0.451	1.352	170%
Far East Orchard Ltd	PROP	0.710	0.520	1.885	165%
Ho Bee Land Ltd	PROP	0.875	0.300	2.200	151%
Lee Kim Tah Hldgs Ltd	CONS	0.360	0.345	0.900	150%
Tai Sin Electric Ltd	MFG	0.140	0.150	0.350	150%
Etika International Hldgs Ltd	MFG	0.165	0.130	0.410	148%
Petra Foods Ltd	MFG	1.470	0.345	3.530	140%
Silverlake Axis Ltd	SERV	0.375	0.120	0.900	140%
Lion Teck Chiang Ltd	COM	0.315	0.190	0.755	140%
Cortina Holdings Ltd	COM	0.360	0.270	0.855	138%
Noel Gifts International Ltd	COM	0.115	0.110	0.265	130%
Falcon Energy Group Ltd	COM	0.150	0.310	0.345	130%
United Industrial Corp Ltd	MULTI	1.480	1.190	3.330	125%
BRC Asia Ltd	MFG	0.090	0.075	0.200	122%
Sarine Technologies Ltd	SERV	1.080	0.115	2.400	122%
Select Group Ltd	SERV	0.160	0.120	0.350	119%
See Hup Seng Ltd	CONS	0.135	0.140	0.295	119%
Sim Lian Group Ltd	PROP	0.405	0.260	0.875	116%
Pollux Properties Ltd	PROP	0.040	0.035	0.085	113%
Karin Technology Hldgs Ltd	SERV	0.145	0.130	0.305	110%
Powermatic Data Systems Ltd	MFG	0.070	0.100	0.146	109%
Ying Li Intl Real Estate Ltd	PROP	0.130	0.290	0.270	108%
Teckwah Industrial Corp Ltd	MFG	0.195	0.110	0.400	105%
UOL Group Ltd	PROP	3.260	1.630	6.630	103%
Addvalue Technologies Ltd	SERV	0.065	0.055	0.132	103%
Sakae Holdings Ltd	HOTEL	0.265	0.120	0.530	100%

Collectively, which are the sectors that produced the most multi-baggers between May 2006 and May 2014? The figure below shows the distribution of multi-baggers according to sectors. Shares that are listed as "Same" have neither doubled nor halved in price between May 2006 and May 2014, while shares listed as "Worse" have their prices at least halved, while shares listed as "Better" have their prices at least doubled.

Distribution of Multi-Baggers By Sector

Based on the above figure, it can be seen that the Construction sector has produced the most multi-baggers in percentage terms, with 45% of the shares at least doubling in price. The Property sector is ranked second, with 24% of the shares doubling in price. It is no wonder that these 2 sectors have produced the most multi-baggers, considering how property prices in Singapore have risen over the past 10 years. The Services, Commerce and Hotel sectors are ranked third, with around 17-18% of the shares doubling in price.

On the converse side, the Manufacturing and Services sectors are the worst performers, with around 50% of their shares having prices at least halved. This could be due to the loss of competitiveness of the electronics industry, which contributes about 25% of the manufacturing value-add in Singapore. Factories have also relocated to lower-cost countries such as China and Thailand over the 8-year period of the study. As for the Services industry, it is more puzzling, as the sector also produces multi-baggers in 18% of the shares. This shows how diverse the sector really is. While the Agriculture and Electricity/Gas/Water (EGW) sectors have also performed badly, there is only 1 share in Agriculture and 2 shares in EGW.

On a net basis, the Construction, Hotel, Property and Multi-Industry sectors have produced more positive multi-baggers (i.e. those that at least doubled in price) than negative multi-baggers (i.e. those that at least halved in price). The worst performers are the Manufacturing, Services and Finance sectors, which have more negative multi-baggers than positive multi-baggers.

Generally, which sectors will produce the next crop of multi-baggers will really depend on the prospects of that sector in the next few years. While the Construction and Property sectors have produced many multi-baggers in the past, it does not necessary follow that these 2 sectors will continue to produce multi-baggers in the future, especially considering the property cooling measures and demographics headwinds that the Property sector faces.

On the other hand, even in the worst performing sectors, there are multi-baggers among the shares. There are only 2 shares that multiplied by 10 times or more over the 8-year period, and they both belong to the Manufacturing sector, which produces 41% more negative multi-baggers than positive multi-baggers. Thus, it is not a given that if the sector faces poor prospects, its shares are also poor performers. It is important to look at individual companies rather than just considering the sector the companies are in.

On a last note, it is interesting to note that the share price of some multi-baggers during the GFC in Mar 2009 is even higher than that during normal economic times in May 2006. This shows that if a company is good, it will perform well even during times of great market stress.

See related blog posts:

• The Multi-Baggers of SGX
• How to Get a Multi-Bagger?
• Multi-Baggers -- To Hold or Not to Hold?