Three Shares For Dragon Boat Festival

Dragon BoatThe fifth day of the fifth month of the lunar calendar can mean only one thing. It is time to mess about on the river because it is that time of the year when we celebrate Dragon Boat Festival.

So in recognition of the Double Fifth Festival, here are three shares that have a focus on boats, food and those delicious tetrahedral sticky rice dumplings.

The Fifth Day Festival has a close association with the river. So it is perhaps fitting that today’s journey starts on the water.

Back in 1848, a British Ship Captain by the name of Henry Keppel discovered a deepwater harbour in Tanjong Pagar. That company has over the years blossomed into one of Singapore’s largest conglomerates, Keppel Corporation (SGX: BN4).

Keppel Corporation has its fingers in many pies. They include telecoms, property and oil exploration. The company, with many moving parts, has delivered an annual total return of around 10% over the last two decades. In other words, every $10,000 invested in the shipbuilder would have turn into $70,000 in 20 years.

Food plays a large part in any Asian festival and Dragon Boat Festival, which is also known as Duanwu Festival, is no different. In Singapore, one of the largest player in the food sector is Dairy Farm International Holdings (SGX: D01), which operates Cold Storage, Jason’s and Market Place supermarkets. In Hong Kong, Dairy Farm owns Wellcome, which is one of the two largest grocery chain in the country.

Dairy Farm, which is worth around S$17.7b, is part of the colossal Jardine Group. The company has delivered one of the highest Return on Equity (RoE) for shareholders.

At a RoE of 37%, it implies that Dairy Farm has generated S$37 of profit for every $100 invested in the business. The impressive RoE is in part due to Dairy Farm’s efficiency. The grocer generates S$2.60 of revenues for every dollar of asset employed in the business.

No Dragon Boat Festival would be complete without a nod in the direction of zongzi or sticky rice dumplings. As it happens, rice is one of the many commodities traded by Noble Group (SGX: N21). In 2010, Noble launched a global rice trading organisation with teams in South Africa, Switzerland, Wes Africa and Asia.

Noble is one of the 30 companies that make up the Straits Times Index (SGX: ^STI). Since 1993, revenues at Noble have increased from S$410m to around S$124b. Over the same period, the bottom-line profit of S$8.5m has turned into S$446m. Since its flotation, shares in the commodity trader have trebled. The annual total return, which includes reinvested dividends, has been 9%

Whether you call it Dragon Boat Festival, Double Fifth Festival, Fifth Day Festival or Duanwu Festival, all of us here at Motley Fool Singapore hope you have a great day.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.