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Top 5 Performers in Singapore’s Stock Market for the Past Five Years

With 2014 coming to an end, it marks the completion of a full five year period since the market’s recovery in early 2009. For those who have remained invested in Singapore’s stock market from the start of 2010 to the (near) end of 2014, your investments should have been satisfactory given that the SPDR STI ETF (SGX: ES3) has gained 14% in total even without accounting for dividends. The SPDR STI ETF is an exchange-traded fund which tracks Singapore’s market benchmark, the Straits Times Index (SGX: ^STI).

But for investors in certain individual stocks, their returns from the start of 2010 to the end of 2014 (as of 26 December this year) would have been way better. Let’s take a look at the five best performers in Singapore’s stock market over that near-five-year block. Let the countdown begin.

Number 5

With operations in the water treatment industry in China, United Envirotech Ltd (SGX: U19) has propelled itself into 5th spot with a total return to shareholders of 528% over those five years. In other words, a S$10,000 investment in the company back in 2010 would be worth S$57,300 today with dividends reinvested.

United Envirotech’s share price gains did not occur in a vacuum as the company’s revenue has increased from S$69.1 million in FY2010 (financial year ended 31 March 2010) to S$202.3 million in FY2014. Along the way, it’s profit also grew from S$14.9 million to S$20.1 million.

The company looks set to have a great FY2015 as it has already booked S$39.2 million in profit in just the first six months of the current financial year. With the industrialization and urbanization of China still far from over, the prospects of this company does not seem to have dimmed.

Number 4

The fourth best performer is GSH Corporation (SGX: J16), which was formerly known as JEL Corporation before local billionaire Sam Goi Seng Hui took over the reins in a reverse takeover in 2012. Since then, Goi has been positioning GSH Corporation as a strong property and hospitality outfit in the region.

Earlier this year, GSH formed a consortium with Vibrant Group Ltd (SGX: F01) to takeover Equity Plaza, a property owned by Keppel Land Ltd (SGX: K17), for S$550 million.

Although GSH’s real estate-related ventures have not showed up much in terms of operating income as yet, investors haven’t been shy in bidding up the company’s shares. GSH has delivered total returns of a neat 552% since the start of 2010.

Number 3

This company has achieved a total return of 655% for its investors over the five year block under consideration. Yet, it is still one of the more “under the radar” companies in Singapore’s stock market. Fools, meet UMS Holdings Limited (SGX: 558), a precision engineering group and original equipment manufacturer for the semi-conductor industry.

During the financial crisis years, UMS’s corporate performance deteriorated significantly with its profit of S$12.1 million in 2007 turning into a loss of S$24.3 million in 2009. But in 2010, the firm turned its operations around in a significant manner and has been consistently profitable since.

Interestingly, the firm is still carrying a really low valuation of less than 7 times its trailing earnings even after experiencing such great returns over the past five years. But, there seems to be good reasons for UMS Holdings’ low valuation.

2010 12 months ended 30 September 2014
Revenue S$129 million S$122 million
Net income S$28.7 million S$32.2 million

Source: S&P Capital IQ

As seen in the table above, the firm hasn’t been able to grow its revenue and earnings by much (if at all) over the past five years.

Number 2

Yoma Strategic Holdings Ltd (SGX: Z59) is a conglomerate that has many different business interests in Myanmar. The company came into its current form after the successful reverse takeover of Sea View Hotel Limited in 2006.

Since then the company has steadily transformed itself into a conglomerate with businesses in the property, automotive, retail, and even agriculture segments of Myanmar’s economy. With expectations resting on the once hermit-like nation steadily opening up its economy to outside investors, the market has been highly optimistic about Yoma Strategic’s prospects. The company’s shares have delivered a total return of 846% since the start of 2010.

And the winner is…

A company my colleagues and I have discussed at length for a number of times in the past – Sarine Technologies Ltd (SGX: U77). As a unique service and equipment provider for the diamond manufacturing industry, the company has grown its revenue from US$21.4 million in 2009 to US$76.4 million in 2013. Along the way , its profit has also increased from US$1.5 million to US$23.9 million.

That kind of corporate growth has provided Sarine Technologies’ shareholders with a 1,068% total return for that near-five-year block of time I’m looking at. For further insight into the risks and opportunities that Sarine Technologies has with its business, check out here.

Foolish Summary

I’ve just given a brief recap of the top 5 performers in Singapore’s stock market for the past five years. Join me and my colleagues at the Fool as we discover together the top performers for the next five years.

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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 Stanley Lim doesn’t own shares in any companies mentioned.