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These 3 Companies Own Singapore’s Most Valuable Brands

gold coin chart arrow upBrand Finance, an independent consultancy based in the United Kingdom that helps value intangible assets, had recently revealed Singapore’s most valuable brands in its “The Brand Finance Top 100 Singapore Brands Report 2014.”

Brand Finance ranks brands of locally-listed firms by their absolute dollar values by determining the royalties the company would have had to pay to license its brand if it did not already own it.

Let’s take a look at the companies with the top three rankings in Brand Finance’s latest report.

1. DBS Group Holdings (SGX: D05)

The most valuable brand for 2014 belongs to DBS Group Holdings. Ranked No. 1 last year as well, the brand value of the bank has increased 15% year-on-year to US$4.01 billion.

The famous bank has over 250 branches across 17 markets and has a growing presence in three key Asian markets – Greater China, Southeast Asia, and South Asia.

DBS Group Holdings has won numerous awards such as “Asia’s Best Bank” by The Banker and “Best Bank in Asia-Pacific” by Global Finance. Furthermore, the bank has been named “Safest Bank in Asia” by Global Finance for five straight years from 2009 to 2013. Gaining top spot in Brand Finance’s latest rankings is another feather on the bank’s cap.

For the first quarter ended 31 March 2014, DBS Group Holdings’ net profit rose 9% from a year ago to a record S$1.03 billion, marking the first time that the bank’s quarterly profit has crossed the S$1 billion mark.

DBS is currently trading at a historical price-to-book ratio of 1.2 at its current price of S$17.11.

2. Singapore Airlines (SGX: C6L)

When one mentions Singapore Airlines, the iconic Singapore Girl – the smiling, kebaya-clad air stewardess – is the first thing that might come to the mind of most travellers; It’s also hard to fight the notion that the Singapore Girl has had a big role to play in helping put SIA on the international map.

In Brand Finance’s latest ranking, SIA’s brand value rose from US$3.12 billion last year to US$3.25 billion.

Even though the company has been doing well on the branding front, its financial performance has been anything but. SIA’s net profit for its latest financial year had dropped by 5.1% from S$378.9 million to S$359.5 million and it has been seeing operating challenges due to intense competition in many areas and economic uncertainty in key markets. Elevated fuel prices did not help SIA’s cause either.

With the above as a backdrop, it is perhaps no surprise that the airlines’ current share price of S$10.40 is a far cry from its 5-year peak of around S$15 last seen in October 2010.

3. Wilmar International (SGX: F34)

Commodity firm Wilmar saw its brand value grow by 5.3% to US$2.89 billion from US$2.74 billion a year ago.

Wilmar is Asia’s leading agribusiness group and its business activities include oil palm cultivation, sugar milling and refining, grains processing, and many more. It has over 300 manufacturing plants and an extensive distribution network spanning over 50 countries. Last year, the firm was voted by Fortune Magazine as the World’s Most Admired Company in the Food Production Industry category.

Wilmar is now valued at 12 times its historical earnings at its current price of S$3.22.

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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 contributor Sudhan P doesn’t own shares in any companies mentioned.