Top 10 construction stocks averaged total returns of 11% YTD

PanU is the frontrunner with 42% total return.

The 10 best performing construction stocks generated an average total return of 11% and a combined market value of $2.1b, according to an SGX report.

Pan United (PanU) led the pack with 42% total return in 2019 YTD, after being the second worst performer in 2018 with a 43% decline. International Cement came second with 15%, followed by Boustead Projects at 14%, ISOTeam at 12%, and Lian Beng Group at 11%.

The latter five comprised of Lum Chang Holdings at 7%, Wee Hur Holdings at 6%,and Hock Lian Seng at 4%. Chip Eng Seng generated flat returns for the period.

KSH Holdings rounded up the list although its total return YTD fell 4%.

PanU recorded a net attributable profit of $9.1m in H1, up from $0.6m in 1H18. However, its revenue for the same period went down by 6% YoY.

Meanwhile, Chip Eng Seng gained the highest indicative yield of 6% based on the annual 4 cents per share dividend that went ex-dividend on May and the close price of S$0.625 on Friday.

Singapore’s construction sector grew by 2.7% YoY in 3Q2019 from 2.8% and 2.7% in the first two quarters of the year.

The Building and Construction Authority (BCA) estimates total construction demand to be from $27b to $32b in 2019, compared to $30.5b in 2018, driven by rising demand from public and private construction activities.