Wednesday, March 4, 2015

SGX Singapore News Update : Epic Research Singapore

Beverage stocks averaged 4.2% return in 2015 to date

On SGX, there are currently three stocks representing the GICS® Beverage industry - Thai Beverage Public Company, Fraser & Neave, and Dukang Distillers Holdings.

These three Beverage stocks have a combined market capitalisation of S$22.3 billion, representing half of the market capitalisation of the F&B industry which constitutes 39 companies.

All three Beverage stocks generated price gains in the year thus far, with Thai Beverage Public Company gaining 3.6%, Fraser & Neave gaining 6.6% and Dukang Distillers Holdings gaining 2.5%. This generated an average 4.2% price gain for the year to date.

Much attention is placed on the vibrant food industry in Singapore, but we should not omit the beverage industry as well, as drinks are a big business in Asia with the rising consumption of both soft and hard beverages.

On Singapore Exchange(SGX), there are currently only three stocks categorised under the Beverage industry, which are Thai Beverage Public Company, Fraser & Neave, and Dukang Distillers Holdings. This is based on the Global Industry Classification Standard (GICS®), which is also the categorisation used on SGX StockFacts.

Although it may be small in terms of the number of listed counters, the Beverage industry actually accounts for more than half of the total market capitalisation of the Food & Beverage(F&B) industry. These three Beverage stocks have a combined market capitalisation of S$22.3 billion, taking up 52% of the total market capitalisation of the F&B industry which constitutes 39 companies.

Thai beverage, best known for its flagship Chang Beer label- is the largest capitalised Beverage stock with a market capitalisation of S$18.0 billion. It is also a constituent of the Straits Times Index (STI). This is followed by Fraser and Neave which has a market capitalisation of S$4.2 billion. Dukang Distillers, an investment holding company, manufactures, markets, and sells baijiu products in the People’s Republic of China has a market capitalisation of S$98.2 million.

All three companies generated price gains in the year thus far. Thai Beverage Public Company had gained 3.6% as of yesterday. Fraser & Neave, which is the best performer, gained 6.6%, while Dukang Distillers Holdings prices climbed 2.5% year to date. This means an average 4.2% price gain for the sector. On average, the companies maintain a dividend yield of 2.7%.

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