Our retail research team has created 3 stock lists, namely Growth, Value and Yield.
|The Growth List comprises of small-mid capitalisation companies with business catalysts which will potentially grow their earnings in the near future. The Growth portfolio would be suitable for investors looking for higher returns and are willing to tolerate the risk of higher short-term volatility of stock prices.|
|The Value List focuses on companies which are undervalued based on their share prices as compared to the company fundamentals. It would be suitable for conservative investors who prefer price stability and have a longer investment horizon.|
|The Yield List comprises of stocks that provide consistent dividend pay-out. It would be suitable for investors whose primary focus is to gain regular dividend income from their investments.|
August Market Overview
The STI slipped 1.6% in August following some post-2Q results profit taking among the banks and on weaker-than-expected results from heavyweights, Singtel, Sembcorp Industries, Keppel Corp and ST Engineering.
However, the index is still up 13.8% for 8M17 from the solid bank rally and economic recovery spurred by electronics shipments, as well as improving sentiment in the housing market.
Against this backdrop, our GVY lists of stocks achieved an average return of 26% year-to-date (YTD).
Growth Portfolio +23.5% TYD
During the month, we added Valuetronics into the Growth list at SGD0.86 on the back of new key products, such as wireless smart light bulbs and in-vehicle wireless communication modules, which would underpin earnings growth going forward.
However, key performers AEM and Best World lost 8.5% and 23.4%, respectively, in Aug. AEM saw profit-taking after it reported a 6-fold increase in 2Q17 earnings, largely as a beneficiary of the global semiconductor upturn, while Best World suffered collateral damage from a government crackdown on pyramid schemes in China.
Nevertheless, we retain AEM and Best World in the Growth list as their
fundamental earnings profile remains intact.
Value Portfolio +10.6% YTD
Last month, we added GuocoLand at SGD2.07 and SIIC Environment at SGD0.495 into our Value list.
GuocoLand is a laggard property developer that will benefit from the improving Singapore property market, with substantial value-unlocking potential.
Meanwhile, SIIC Environment represents a situational value play arising from its potential dual-listing in Hong Kong, possibly by year end, which could spark an upward re-rating.
Yield Portfolio +43.8% YTD
No changes were made in Aug for the Yield list in the past month. Performance remained creditable, thanks to Venture Corp and Micro-Mechanics, which rose 20% and 22.5% respectively, following better-thanexpected 2Q17 and 4QFY17 results, from improved demand.
Note: *Including dividends
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