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Industrial Engineering stocks gained 23% in 2013 YTD

My Gateway (92 x 92) The Industrial Engineering Sector is made up of two subsectors: Industrial Machinery and Commercial Vehicles and Trucks. Both types of stocks are involved in manufacturing and distribution. Industrial machinery stocks typically focus on industrial machinery and factory equipment such as machine tools, lathes, presses and assembly-line equipment while commercial vehicles and trucks stocks are more involved with commercial vehicles and heavy agricultural and construction machinery which includes rail cars, tractors, bulldozers and cranes.

SGX lists 35 companies from the Industrial Engineering Sector with market capitalisation of more than S$50 million as of 24 December, of which 23 are Industrial Machinery companies while 12 are Commercial Vehicles and Trucks companies. These companies have a strong presence in Asia. On average, they reported 78.6% of their revenue from Asia based on their latest annual filings. All, except four companies reported more than half of their revenue from Asia.

Industrial Machinery

The combined market capitalisation of the 23 Industrial Machinery companies was S$4 billion as of 24 December. These companies averaged a total return of 23.9% so far this year. Their median total return was 24.1%.

Short Name

SGX Code

ICB Subsector Name

Market Cap (S$m)

Px Chg Pct YTD (%)

Dvd Ind Yld (%)

Total Return YTD (%)

Asia Geo Seg Rev (%) in last FY

SARIN TECHNOLOGI

U77

Industrial Machinery

637

85.00

3.19

93.12

76.53

HI-P INTL LTD

H17

Industrial Machinery

446

-29.22

2.20

-28.03

43.54

ROTARY ENGINEER

R07

Industrial Machinery

369

46.07

0.77

47.60

58.60

AMTEK ENGINEER

M1P

Industrial Machinery

259

-4.04

6.95

2.33

89.60

DELONG HOLDINGS

B1N

Industrial Machinery

228

33.87

N/A

33.87

100.00

MEMSTAR TECH LTD

5MS

Industrial Machinery

218

-6.82

N/A

-6.82

95.87

UMS HOLDINGS LTD

558

Industrial Machinery

198

38.55

8.70

52.87

64.18

ARMSTRONG INDUS

A14

Industrial Machinery

195

51.92

1.52

54.69

100.00

TECHNICS OIL &

5CQ

Industrial Machinery

161

-33.33

N/A

-33.33

21.78

TRITECH GRP LTD*

5NL

Industrial Machinery

158

51.85

N/A

51.85

100.00

WORLD PRECISION

B49

Industrial Machinery

152

-3.80

2.63

-1.51

100.00

WEIYE HOLDINGS

ON7

Industrial Machinery

141

24.14

N/A

24.14

87.26

HUPSTEEL LTD

H73

Industrial Machinery

136

16.40

4.55

21.76

96.65

ACMA LTD

A01

Industrial Machinery

134

39.13

N/A

39.13

43.01

SUNNINGDALE TECH

T35

Industrial Machinery

108

12.80

4.26

18.13

55.93

BROADWAY INDUS

B69

Industrial Machinery

92

-29.03

N/A

-29.03

93.70

OEL HOLDINGS LTD*

584

Industrial Machinery

78

132.00

N/A

132.00

78.82

ADVANCED HLDGS

5IA

Industrial Machinery

75

29.73

2.50

32.98

83.98

HIAP SENG ENGINE

510

Industrial Machinery

67

-27.87

4.55

-25.48

93.80

FU YU CORP LTD

F13

Industrial Machinery

58

38.60

N/A

38.60

100.00

GRP LTD

G18

Industrial Machinery

55

-13.87

14.50

8.40

91.38

KIAN HO BEARINGS

K22

Industrial Machinery

51

-4.35

0.91

-3.51

86.98

SPINDEX IND

564

Industrial Machinery

51

20.55

4.09

25.97

50.89

Source: Bloomberg (Data as of 24 December 2013), * denotes catalist stocks

The best performing stocks in this subsector are OEL Holdings, Sarin Technologies and Armstrong Industrial Corporation. All three stocks reported more than 75% of their revenue from Asia.

 OEL Holdings (SGX:584) is the best performer with a total return of 132% so far this year. The group provides engineering, trading and contracting services in various industries such as oil and gas, chemical, marine and electronics. According to its FY12 annual report, the group reported 79% of its revenue from Asia, mainly Singapore, China and Thailand.

The second best performing stock on the list is Sarin Technologies (SGX:U77) with a total return of 93% this year thus far. The group is involved in the development, manufacture and sale of precision technology products for the processing of diamonds and gems. According to its FY12 annual report, the group reported 77% of its revenue from Asia, mainly India.

Since the start of 2013, Armstrong Industrial Corporation (SGX:A14) has generated a total return of 55%. It is a foam and rubber components manufacturer specializing in noise and vibration reduction for the automotive and electronics industries. The company reported its entire revenue from Asia as reported in its FY12 annual report which includes China, Thailand, Singapore, Indonesia, Malaysia and Vietnam.

Commercial Vehicles and Trucks

The combined market capitalisation of the 12 Commercial Vehicles and Trucks companies was S$8 billion as of 24 December. These companies averaged a total return of 22.1% so far this year. Their median total return was 11.7%.

Short Name

SGX Code

ICB Subsector Name

Market Cap (S$m)

Px Chg Pct YTD (%)

Dvd Ind Yld (%)

Total Return YTD (%)

Asia Geo Seg Rev(%) in last FY

YANGZIJIANG SHIP

BS6

Commercial Vehicles & Trucks

             4,522

22.92

4.24

29.75

72.27

COSCO CORP SINGA

F83

Commercial Vehicles & Trucks

             1,646

-17.88

2.72

-16.03

100.00

TAT HONG HLDGS

T03

Commercial Vehicles & Trucks

                567

-33.58

3.89

-31.36

51.47

JAYA HLDGS LTD

J10

Commercial Vehicles & Trucks

                532

4.55

5.80

10.88

39.23

ASL MARINE HLDGS

A04

Commercial Vehicles & Trucks

                266

-6.67

3.17

-3.86

61.50

TIONG WOON CORP

T06

Commercial Vehicles & Trucks

                158

13.33

1.18

14.67

77.19

MENCAST

5NF

Commercial Vehicles & Trucks

                157

15.30

1.79

17.43

94.20

XMH HOLDINGS

M9F

Commercial Vehicles & Trucks

                147

71.72

2.94

76.87

92.58

JES INTERNATIONA

EG0

Commercial Vehicles & Trucks

                138

-40.70

N/A

-40.70

71.15

MARCO POLO MARIN

5LY

Commercial Vehicles & Trucks

                131

0.00

3.64

3.78

90.85

SIN HENG HEAVY

KF4

Commercial Vehicles & Trucks

                123

8.66

3.63

12.55

96.35

YONGMAO HLDGS

E6A

Commercial Vehicles & Trucks

                102

187.50

1.09

191.19

92.77

Source: Bloomberg (Data as of 24 December 2013)

The best performing stocks in this subsector are Yongmao Holdings, XMH Holdings and Yangzijiang Shipbuilding Holdings with Yongmao Holdings and XMH holdings reporting more than 90% of their revenue from Asia while Yangzijiang Shipbuilding Holdings reported 72% of its revenue from Asia.

 Yongmao Holdings (SGX:E6A)is the best performer in the Commercial Vehicles and Trucks subsector with a total return of 191% so far this year. The group designs, manufactures and sells a wide range of towercranes and its components and accessories. According to its FY12 annual report, the company reported 73% of its revenue from People’s Republic of China, 12% from Singapore and 8% from other Asian countries.

 XMH Holdings (SGX:M9F) has generated a total return of 77% so far this year, making it the second best performer on the list. It is a diesel engine, propulsion and power generating solutions provider in the marine and industrial sectors. According to its FY13 annual report, the group reported 93% of its revenue from Asia, mainly Indonesia and Singapore.

Yangzijiang Shipbuilding Holdings (SGX:BS6) produces a range of commercial vessels which includes bulk carriers, chemical tankers and lifting vessels. Since the start of 2013, the group has generated a total return of 30%. According to its FY12 annual report, the company reported 72% of its revenue from Asia, mainly China.

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