The Top 5 Billion-Dollar Companies That Are Exposed To South-East Asia’s Economy

Being a Singapore-listed company does not mean that its fortunes are linked to the Singapore economy alone. There are companies listed in Singapore that do the majority of their business in South East Asia countries outside of Singapore.

Data from a recent report by market researcher Frost & Sullivan show that South East Asia’s economy could grow.

Indonesia, Malaysia, Singapore, and Thailand together account for around three-quarters of the ASEAN economy. From 2005 to 2014, the four countries’ collective gross domestic product (GDP) has grown at 4.0% annually from US$1.01 trillion to US$1.62 trillion. Frost & Sullivan projects the four countries’ GDP to compound at an annual rate of 3.38% from 2014 to 2020.

A recent report by bourse operator Singapore Exchange Limited (SGX: S68) highlighted 14 different Singapore-listed companies that have a market capitalisation of over S$1 billion and that derive over 50% of their revenue from the South East Asia region excluding Singapore.

Here’re the top five biggest companies from the list (data as of 7 October 2016, unless otherwise stated):

  1. Jardine Matheson Holdings Limited (SGX: J36) tops the list with a market cap of S$60.5 billion. The conglomerate holds an 83% stake in Jardine Strategic Holdings Limited (SGX: J37). Jardine Matheson has recorded a total return of over 57% in the last five years.
  2. In second place is actually Jardine Strategic – it has a market cap of S$51.3 billion. Jardine Strategic holds majority ownership of a number of other Singapore-listed companies such as Pan-Asian bricks-and-mortar retailer Dairy Farm International Holdings Ltd (SGX: D01), Hong Kong-focused real estate investor and developer Hongkong Land Holdings Limited (SGX: H78), and hotelier Mandarin Oriental International Limited (SGX: M04). Jardine Strategic Holdings’ shares have clocked in a total return of almost 40% over the last five years.
  3. Thai Beverage Public Company Limited (SGX: Y92) has a market cap of S$25 billion and sits in third spot. The company makes most of its dough in Thailand. Its five-year total return is an impressive 360%.
  4. Another member of the Jardine empire, Jardine Cycle & Carriage Ltd (SGX: C07), also made it to the list in fourth place with a market capitalisation of S$17 billion. Unlike the other two Jardine entities, Jardine C&C derives most of its revenue from its ownership of PT Astra, an Indonesian conglomerate. Shares of Jardine C&C have delivered a total return of 24% in five years and 27% year-to-date.
  5. Beverage purveyor Fraser and Neave Limited (SGX: F99) rounds out the list in fifth place. It has a market cap of S$3.1 billion and is majority owned by Thai billionaire Charoen Sirivadhanabhakdi, who is the chairman of both Fraser and Neave and Thai Beverage. Fraser and Neave’s shares have a total return of 62% over the last five years.

Looking back helps us understand how a company has fared and gives us clues on which might be worth following. This may give us a head-start on our investing homework.

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