Top three healthcare firms averaged total return at 31.2% in January-July 2019

These three firms’ average dividend yield came at 3.3% over the same period.

The three best performers amongst the listed healthcare firms, ISEC Healthcare (45.2%), HMI (34.1%) and Singapore O&G (14.2%), have an average total return of 31.2% over the first seven months of 2019, according to SGX.

This brings their one-year and three-year total returns to 22.7% and 42.2%, respectively. The three firms also averaged a dividend indicated yield of 3.3%.

There are 19 healthcare service providers listed on the local bourse, bringing its combined market capitalisation to over $20b. Furthermore, the 10 largest ones recorded an average total return of 5.7%.

In addition, SGX added that the healthcare sector is projected to enjoy multi-year growth prospects. Its drivers include accelerated ageing rates, the rise of lifestyle diseases like diabetes and hypertension, as well as growing disposable incomes.

Majority of Singapore’s healthcare service providers have also been pursuing international expansion plans in recent years. Its operations and assets span multiple geographies outside the city-state, including markets in South and Southeast Asia, Northeast Asia, as well as Middle East and Europe.

“Investors can easily participate in the structural Asian healthcare theme through SGX-listed healthcare stocks that are rapidly expanding into regional and global markets to meet growing patient needs,” SGX stated in the report.