Top ten manufacturing stocks averaged 48% total returns in 2019

AEM Holdings leads the pack with a 154% full-year total return.

The ten best-performing manufacturing stocks generated a total return of 48% and a median total return of 34% in 2019, according to an SGX report. These firms are involved in the maritime, F&B, value chain management, aerospace and hi-tech industries.

AEM Holdings leads the pack with a 154% full-year total return. This is followed by Hi-P International at 101%, UMS Holdings at 90%, Thai Beverage at 49% and Wilmar International at 36%.

In terms of daily turnover value, Yangzijiang Shipbuilding nabbed the top spot at $34m over the same period. Wilmar and Venture Corp came second and third, respectively, with $20m in returns.

In addition, Wilmar recorded the highest market capitalisation, valued at $26.12b. ThaiBev followed at $22.35b, whilst Singapore Tech Engineering came next at $12.28b

These stocks are also said to have provided for short term trading opportunities with average volatility of 33% during 2019, and a combined average daily turnover of $136m. Together, the ten firms were also recipients of $685m in net institutional net inflow.

SGX also noted that eight of the top ten firms are non-maritime manufacturers that posted gains in 2019. It ranged from 17% for Singapore Tech Engineering to 154% for AEM Holdings.

So far, the six non-maritime manufacturers that completed their FY19 in December averaged 1% net profit growth for the first nine months of 2019, ranging from a YoY decline of 28.4% for UMS Holdings to a 23.8% YoY increase for AEM Holdings.

The report stated that the top ten manufacturing stocks outpace the 2019 PMIs. In its latest reading for November, the figure was at 49.8 and was the seventh month of contraction for Singapore’s overall manufacturing sector. Meanwhile, the electronics sector (at 49.7 in November) was also in contraction for all of the first 11 months of 2019.