3 Stocks With Big Growth Runways

For Singapore-listed companies, it’s worth noting that there is growth potential for their businesses even beyond the shores of Singapore.

The Association of Southeast Asian Nations (ASEAN), a collection of 10 nations of which Singapore is one, provides a good example. The member nations are within close geographical proximity to each other and houses a collective population of 625 million people. This large population could offer a growth runway that far exceeds the potential of Singapore alone.

Of the ten ASEAN countries, the three largest economies belong to Indonesia, Thailand, and Malaysia. A recent report from Singapore’s stock market operator, Singapore Exchange Limited (SGX: S68), had highlighted a number of companies that are operating in the aforementioned countries.

I had picked out three companies in particular and here are five interesting points about them to note(data as of 18 March 2016, unless otherwise stated):

  1. According to data from the World Bank, Indonesia had a population of over 250 million people in 2014. Meanwhile, Thailand had a population of nearly 68 million people. Elsewhere, Malaysia boasts a population base of a touch below 30 million.
  2. Investors interested in the Indonesian economy may consider Jardine Cycle & Carriage Ltd (SGX: C07). The conglomerate owns just over 50% of Indonesia-listed PT Astra, a diversified conglomerate with a focus on Indonesia. PT Astra has multiple business interests in the country ranging from palm oil to banking and vehicle distribution. Over the past five years, Jardine Cycle & Carriage’s stock had given a total return of 45%.
  3. Thai Beverage Public Company Limited (SGX: Y92) derives the majority of its sales from Thailand. The food and beverage company peddles everything from spirits to beer and non-alcoholic drinks to snacks. Shares of Thai Beverage had tripled over the past five years. Interestingly, the company has an aim to source half of its sales from outside of Thailand in the future under its Vision 2020 strategic roadmap.
  4. Rounding out the trio would be the healthcare group IHH Healthcare Bhd (SGX: Q0F). The Malaysia-based company has operations in Singapore, Malaysia, Turkey, China, and India. Shares of the healthcare group have almost doubled since its initial public offering (IPO) in Singapore’s stock market in July 2012.
  5. Income investors might be interested to learn that both Thai Beverage and Jardine C&C offer a dividend yield of over 2%. The former had a yield of 3.2% while the latter’s was at 2.3%.

For more investing insights and to keep up to date on the latest financial and stock market news, you can sign up for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore

Also, like us on Facebook to follow our latest hot articles. The Motley Fool's purpose is to help the world invest, better.

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