The Straits Times Index (SGX: ^STI) started 2017 at 2,881 points and ended the year 18.1% higher at 3,403.
Yet, this healthy return does not imply that all 30 companies within the Straits Times Index had similar returns. In fact, there were some big losers, some flat stocks, and some huge winners within the group of the 30 blue chip stocks.
This article is the third in a series that will look at the outperformers and laggards among the Straits Times Index’s constituents. The first article discussed three blue chips that outperformed the index in 2017, while the second article looked at two blue chips with returns that lagged the market significantly. In here, I will focus on three other blue chips that did well in 2017 when compared to the Straits Times Index. [Editor’s note: The fourth article in this series has been published. It is on another three blue chips that lagged the market badly. It can be found here.]
First up we have Global Logistic Properties Ltd (SGX: MC0), an owner and developer of modern logistics facilities. It has operations in four countries, namely, China, Brazil, Japan, and the US.
The company delivered a strong set of results in its latest earnings update. In the six months ended 30 September 2017, Global Logistic Properties reported a 29.3% year-on-year increase in revenue to US$543.5 million. Its profit for the period climbed by 10.0% to US$517.9 million.
But, what really propelled the company’s stock to a 53.2% return in price alone in 2017 was the company’s agreement to be acquired and privatised by a consortium of investors that includes HOPU, Hillhouse Capital, Bank of China Group Investment, Vanke, and Global Logistic Properties’ chief executive officer, Ming Mei. The offer price is S$3.38, which is just one cent higher than the S$3.37 that Global Logistic Properties’ stock ended 2017 at.
Many investors in Global Logistic Properties are likely to be happy, given that the company’s stock only traded above S$3.00 for a very brief period of time in the last five years (that would be in October 2013). Global Logistic Properties’ stock has been suspended from trading with effect from 5 January 2018, due to the privatisation.
Next, we have CapitaLand Commercial Trust (SGX: C61U), which saw its unit price climb 30.4% in 2017. In terms of market capitalisation, CapitaLand Commercial Trust is one of the largest real estate investment trusts in Singapore’s stock market that focuses on commercial properties.
The REIT’s main geographical area of interest is Singapore, and it has ownership stakes in properties such as Capital Tower, Six Battery Road, HSBC Building, One George Street, Raffles City Singapore, and more.
2017 has proved to be a fruitful year for CapitaLand Commercial Trust so far as it had experienced growth in the first nine months of the year in important areas such as its revenue, net property income, and distribution per unit. For the aforementioned period, the REIT’s revenue was up 20.3% year-on-year to S$251.2 million, its net property income climbed 23.1% to S$197.5 million, and its distribution per unit inched up by 3.4% to 6.92 cents.
At CapitaLand Commercial Trust’s current unit price of S$1.97, it has a price-to-book ratio of 1.08.
Rounding up the list here today is United Overseas Bank Ltd (SGX: U11), Singapore’s third largest bank by total assets. As I mentioned in my earlier article in this series, the market had negative sentiment toward banks in 2015 and 2016 for a variety of reasons (my article covered the reasons). But, the worries and fears did not materialise, and as such, the bank stocks in Singapore performed well in 2017. For UOB, its stock price rose 29.7% during the year.
At its current stock price of $27.13, UOB has a price-to-book ratio of 1.36.
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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 Lawrence Nga doesn’t own shares in any companies mentioned. The Motley Fool Singapore has a recommendation on United Overseas Bank.