Is growth investing really dead in Singapore?
Are there really no multi-baggers made during the last 10 years in Singapore?
By gauging Singapore stock investors’ sentiments, that seems to be the case. But humans can be selectively biased.
As I dug deeper, I came to realize there have been some multi-baggers within the Singapore markets for the last 10 years.
Here are the 10 best-performing SG stocks, inclusive of dividends.
1. Best World International Ltd (SGX: CGN): +2,765%
Best World International (SGX: CGN) is a Singapore-headquartered company that specializes in the development and distribution of premium skincare, personal care, beauty, health, and wellness brands.
The company’s products are sold in over 10 countries around the world, including Singapore, Thailand, Taiwan, Indonesia, Malaysia, Vietnam, Hong Kong, China, Korea, the Philippines, and Dubai.
Inclusive of dividends, Best World posted the best 10-year return record among all SGX-listed stocks – a whopping 2,765%. You might be tempted to jump straight into this stock, but do take note of one important event that happened.
On the 9th of May, 2019, Best World International’s shares were suspended from trading on the Singapore Exchange (SGX) following the release of a short seller report by Bonitas Research that alleged accounting irregularities and sales inflation. The company denied the allegations, but the trading halt remained in place for over three years.
Even though shares resumed trading, the upward momentum did not continue.
2. AEM Holdings Ltd (SGX: AWX): +2,738.7%
AEM Holdings Ltd. (SGX: AWX) is a Singapore-based semiconductor test solutions provider. It was founded in 2000 and has since grown to become one of the leading semiconductor test companies in the world.
AEM’s products and services are used by semiconductor manufacturers to test their products at various stages of the manufacturing process.
Revenue and net profit have shown YoY growth over the last 10 years, which justifies the fundamental rise and stock returns of AEM.
Overall returns for the last 10 years are 2,738.7%, inclusive of dividends.
3. Azeus Systems Holdings Ltd (SGX: BBW): +939.7%
Azeus Systems Limited (SGX: BBW) is an information technology (IT) solutions provider. It specializes in the development and implementation of advanced software applications and services for various industries.
This Hong Kong-based but Singapore-listed company is just a small-cap but has been showing potential lately.
For the past 5 years, revenue and net income have been on a growing upward momentum.
However, interested investors might want to dig deeper into their cash flow as it still looks choppy.
4. Samudera Shipping Line Ltd (SGX: S56): +892.1%
Samudera Shipping Line Ltd. (SGX: S56) provides container shipping, bulk and tanker shipping, and logistics services.
The company’s main business is in the container feeder shipping business, serving the Middle East, Indian Sub-continent, South East Asia,j and the Far East market. Besides container shipping, Samudera is also engaged in industrial shipping, through its subsidiary Foremost.
The company’s top and bottom lines were relatively flat in the earlier parts of the last 10 years. But recently it has seen continuous tailwinds from the shipping and logistics side.
It’s worth noting that most of its stock price appreciation happened after 2020.
5. UMS Holdings Ltd (SGX: 558): +775.3%
UMS Holdings Ltd (SGX: 558) specializes in manufacturing high-precision front-end semiconductor components and performing complex electromechanical assembly and final testing services. The company also provides factory automation equipment, standalone equipment, and precision machining parts.
Fundamentally, UMS looks to be proving its mettle as revenue and profits have been showing exponential growth over the last 10 years.
Operating cash flow is trending in tandem with its fundamentals, which is a good sign that the company is raking in more cash from its operations.
6. Multi-Chem Ltd (SGX: AWZ): +613.5%
Multi-Chem Limited (SGX: AWZ) specializes in specialty chemicals distribution and IT distribution.
Its specialty chemicals business distributes a wide range of products, including printed circuit board (PCB) chemicals, electronic materials, and adhesives. The company’s customers include PCB manufacturers, electronic component manufacturers, and other industrial users.
Its IT business, under M Tech, distributes a range of IT products, including cybersecurity solutions, network performance products, and wireless networking products.
Revenue and net profit did not buck the trend during the COVID period. Margins might not look sexy but a 10-year topline growth track record proves that the company is able to go against other competition in the market.
As the business provides products and services that are consumables in nature, this might be a good indication that there is still more room for growth.
7. Powermatic Data Systems Ltd (SGX: BCY): +605.5%
Powermatic Data Systems Ltd. (SGX: BCY)‘s business focuses on the design and manufacturing of wireless connectivity devices.
Its products are used in a wide range of industries, including factory automation, healthcare, hospitality, security surveillance, and more.
Not many people know that this small company is the only Authorized Design Center appointed and Endorsed by Qualcomm Atheros in the Southeast Asian region.
That might explain its superior margins gross and net margins.
YTD-wise, this stock is still in the black. It is up close to 14%, and trades at just a P/E of 10x.
8. iFAST Corporation Ltd (SGX: AIY): +599.2%
iFAST Corporation Ltd (SGX: AIY) is a global digital banking and wealth management platform headquartered in Singapore. The company provides a comprehensive range of investment products and services to financial advisory firms, financial institutions, banks, internet companies, multinational companies, as well as retail and high-net-worth individuals.
The stock saw unexpected tailwinds during the COVID period where mandated work-from-home incited stock trading mania.
Even though stock prices have corrected since then, operating cash flow and free cash flow margins look robust and promising.
9. Micro-Mechanics (Holdings) Ltd (SGX: 5DD): +532.2%
Micro-Mechanics (Holdings) Ltd (SGX:5DD) designs, manufactures, and markets high-precision parts and tools used in process-critical applications for the semiconductor and other high-technology industries.
Its key clients are within the semiconductor sector. Which gives a high margin and long runway for growth, albeit the cyclicality risk.
Earnings per share and dividends per share are on a long-term uptrend. However the latest unexpected slowdown in the semiconductor sector saw margins compressed, lower earnings per share, and lower dividends per share paid out for FY2023.
10. Frencken Group Ltd (SGX: E28): +528.4%
The last company to make it to the list is Frencken Group Ltd (SGX: E28), an integrated technology solutions company that provides a comprehensive range of product solutions that span the entire value chain – from initial product design, development, and prototyping, to engineering, final test, and series manufacturing.
The company has a global presence with offices and manufacturing facilities in Asia, Europe, and the Americas.
Its multi-bagger returns are supported by its fundamentals – the company has proven to be able to scale and grow over the last 10 years.
Good track records need to work well with a good business model
Some of you, even myself, might not touch some of the stocks listed here even though they have achieved multi-bagger statuses and records.
Even though track record is important, it is not the only yardstick when it comes to picking good stocks for its future valuation.
To add that some companies ride on the cyclicality of certain factors, more scrutiny is needed to ensure that we do not end up buying a good company at a high price. When the tides go out, we do not want to be holding on to such losses.
Nevertheless, this list does highlight a handful of prospects that show signs of brilliance and promises.
Don’t be surprised that they remain in the top 10 most performing SG stocks when we relook into them again, 10 years from now!