Sunday 6 July 2014

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:

9 comments:

  1. Sorry but did you miss out OSIM? Went from $0.04 in 2009 to $2.71 in 2014?
    OSIM is considered a super multi-bagger in the SGX!
    Not vested.

    Regards,
    SG Wealth Builder
    www.sgwealthbuilder.com

    ReplyDelete
    Replies
    1. No, I didn't miss it out as the comparison was between May 2006 and May 2014. OSIM returned 81% during that period, so it didn't qualify as a multi-bagger. During severe market stress, there would be a lot more multi-baggers, but the intention of this post is to identify where multi-baggers are likely to come from during normal economic times.

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  2. Chin Wei : very detailed and informative follow-up post. Thanks for sharing..

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  3. We have chance to become rich from stocks. LOL!

    ReplyDelete
    Replies
    1. That's right. Can't think of any investment that can become multi-baggers without the use of leverage.

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  4. Extremely interesting and informative list! Time to go treasure hunting haha

    ReplyDelete
    Replies
    1. There is not just one but many treasures out there. Take your time to pick out the more bountiful ones ;)

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  5. The blog is providing great information regarding some companies or multi-baggers listed under SGX. But I'm in search of news related to KLSE Malaysia and its trading signals.

    ReplyDelete