The Singapore stock market is home to many quality companies. Here are ten of my favourite shares listed on the SGX that you can consider buying in 2020 and beyond (listed in alphabetical order).
1. DBS Group Holdings Ltd (SGX: D05)
DBS is Singapore’s largest bank with its tentacles spread out in many of the growing Asian nations, including China and India. In 2019, the bank was named by Euromoney as the “World’s Best Bank” – not an easy feat considering the competition it has the world over. Its established and growing presence in Greater China, South Asia, and Southeast Asia allows it to capture growth in this dynamic part of world for many years to come.
2. Haw Par Corporation Ltd (SGX: H02)
Haw Par owns the widely-recognised Tiger Balm brand, a pain reliever that can be found in over 100 countries in continents including North and South America, Europe, Asia, Africa, the Middle East, and Australia. The group also has strategic stakes in two other Singapore-listed companies – United Overseas Bank Ltd (SGX: U11) and UOL Group Limited (SGX: U14).
I like that Haw Par’s healthcare segment has grown strongly over the years; segment profit has climbed 437% in total from 2007 to 2018. The growth does not stop there – there are plenty of opportunities for Haw Par to grow further by introducing more new products into existing markets and so on.
3. Hongkong Land Holdings Limited (SGX: H78)
Hongkong Land is a property investment, management, and development group with assets in countries such as Hong Kong, Singapore, and China. Hongkong Land’s shares were beaten down recently due to the protests in Hong Kong. However, I believe that the city will continue to be a strong financial hub and attract businesses from all over the world over the long-term, particularly given its high-quality properties in the heart of the Central district.
4. iFAST Corporation Ltd (SGX: AIY)
iFAST an Internet-based investment products distribution platform that provides a comprehensive range of investment products and services to both corporate clients and retail investors. The company is well-positioned to tap into the growth opportunities in Asia’s wealth management segment over the long-term. iFAST has an ambitious target of reaching assets under administration (AUA) of S$100 billion by the end of 2028.
5. Keppel DC REIT (SGX: AJBU)
Keppel DC REIT is the first pure-play data centre real estate investment trust (REIT) in Asia. The explosion of data usage will benefit Keppel DC REIT in the long-term. Seagate predicts that worldwide data creation will grow to an enormous 163 zettabytes by 2025, which is a whopping ten times the amount of data that was produced in 2017.
6. Mapletree Commercial Trust (SGX: N2IU)
Mapletree Commercial Trust owns office and retail assets such as VivoCity, Mapletree Business City I, and PSA Building. In its latest quarter, the REIT’s gross revenue and distribution per unit (DPU) climbed 3.3% and 3.6%, respectively, year-on-year.
VivoCity, the largest contributor to the REIT in terms of gross revenue, is poised to continue doing well. The shopping mall could see spillover effects from the expansion of Resorts World Sentosa (RWS), which will begin in phases with new experiences opening every year from 2020 to a projected completion around 2025.
7. Raffles Medical Group Ltd (SGX: BSL)
Raffles Medical is a large private healthcare group founded in Singapore. In 2019, the group opened a new hospital in Chongqing, China, and is slated to open another one in Shanghai next year. Even though gestational losses are expected for the new hospitals, they have the potential to do well, considering the total addressable market in those two cities – many times larger than Singapore’s population.
8. Riverstone Holdings Limited (SGX: AP4)
Riverstone is a manufacturer of nitrile and natural rubber cleanroom gloves as well as premium nitrile gloves used in the healthcare sector. There is strong demand for its gloves as seen from its revenue growth over the years. To keep up with demand, Riverstone plans to increase production capacity by 1-1.5 billion pieces of gloves each year. It also expects both cleanroom and healthcare markets to grow and continue to gain traction.
9. SATS Ltd (SGX: S58)
SATS is a provider of food solutions and gateway services solutions, mostly to the aviation industry. Being a major services provider at Changi Airport, the expansion of Singapore’s airport will help to further fuel growth for the company. Changi Airport is expected to open Terminal 5 around 2030, and the terminal will be larger than Terminals 1, 2 and 3 combined. The rising middle class in Asia should also provide tailwinds for SATS’s overall business.
10. Singapore Exchange Limited (SGX: S68)
Singapore Exchange (SGX) is a multi-asset exchange that provides services such as equities, derivatives, and fixed income trading. SGX just concluded its 2019 fiscal year where it reported the highest revenue number since its listing and a net profit that hit an 11-year peak. Just like DBS and iFAST, the overall growth in Asia’s wealth management sector should bode well for SGX in 2020 and beyond.
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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 DBS, Haw Par, United Overseas Bank, Hongkong Land, iFAST, Mapletree Commercial Trust, Raffles Medical, Riverstone, SATS and Singapore Exchange. Motley Fool Singapore contributor Sudhan P owns shares in Hongkong Land, iFAST, Raffles Medical, SATS and Singapore Exchange.