Mid-cap industrial stocks chalked up solid returns: SGX report

SINGAPORE - Major mid-cap stocks in the industrial sector have averaged handsome returns so far in 2015, the latest My Gateway report by Singapore Exchange indicates.

Among the 77 mid-cap stocks listed in SGX, 12 counters average a market capitalisation of $2.2 billion, and their averaged total return thus far this year - including dividend - was 8 per cent, boosted by a dividend yield of 2.7 per cent, the bourse said in the report on March 2.

"The five largest mid-cap Industrials stocks, Yangzijiang Shipbuilding, Singapore Post, Sats, SMRT Corporation, and Neptune Orient Lines have a combined market capitalisation of S$17.7 billion. They maintained a price gain of 7.8 per cent in the year thus far," SGX added.

The biggest - Yanzijiang Shipbuilding - has a market cap of around $4.69 billion, with share prices rising 1.7 per cent year-to-date to $1.225 at last close. The company announced just last week it still maintained an outstanding orderbook of 118 vessels totaling US$4.75 billion, even as fourth quarter net profit dipped 15 per cent year-on-year to around $138.8 million.

Shares of Singapore Post, with a market cap of $4.29 billion, also rose 4.2 per cent year-to-date to close at $2 on last Friday. Since its listing in 2003, share prices have surged 233.3 per cent for the company.

SMRT Corporation, the fourth largest industrial stock with a market cap of $2.65 billion, also gained 10.1 per cent since New Year to close at $1.74 last Friday. This came as the group reported that its net profit for the quarter ended December 31 rose 58.4 per cent year-on-year to $22.5 million.