Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

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SGX lists 18 healthcare services companies and two healthcare REITs with a combined market cap of about S$25 billion. They operate patient care services and facilities, both locally and worldwide, including laboratories, hospitals, nursing homes and clinics. 
	 </li>
	<li>
Over 2019, the five best-performing healthcare services players were: ISEC Healthcare (+48.6%), Parkway Life REIT (+31.9%), Cordlife (+23.6%), First REIT (+9.9%) and Medinex (+6.3%). The five have averaged a total return of 24.1% over the period, bringing their one-year total return to 18.2%. 
	 </li>
	<li>Singapore’s healthcare sector is poised to enjoy multi-year growth prospects, driven by the region’s accelerated ageing rates and the rise of lifestyle diseases. Investors can participate in the structural Asian healthcare theme through SGX-listed companies that are rapidly expanding into international markets to meet growing patient demand.</li>
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Singapore’s healthcare sector is typically viewed as defensive and poised to enjoy multi-year growth prospects. Drivers of Asia’s increased healthcare spending levels include accelerated ageing rates, the rise of lifestyle diseases like diabetes and hypertension, as well as growing disposable incomes.

The listed healthcare sector in Singapore, as tracked by the benchmark iEdge SG All Healthcare Index, comprises companies that operate in the segments of pharmaceuticals and biotechnology, healthcare and patient services, as well as medical equipment and supplies. SGX also lists two healthcare REITs that operate patient care facilities such as hospitals and nursing homes in Southeast and Northeast Asia.

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 demand.

 

Healthcare Services Players

There are 18 healthcare services companies and two healthcare REITs listed on SGX with a combined market capitalisation of about S$25 billion. They operate patient care services and facilities, both locally and worldwide. These facilities include laboratories, hospitals, nursing homes and clinics that offer services and treatments ranging from family medicine, dentistry, endoscopy and aesthetics to gynaecology, oncology, paediatrics, orthopaedics, ophthalmology, and even cord blood banking.

The majority of Singapore’s healthcare services providers have also pursued international expansion plans in recent years. Their 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.

Over 2019, the five best-performing healthcare services players were: ISEC Healthcare (+48.6%), Parkway Life REIT (+31.9%), Cordlife Group (+23.6%), First REIT (+9.9%) and Medinex Ltd (+6.3%). The five have averaged a total return of 24.1% over the period, bringing their one-year total return to 18.2%.

Note that China’s Aier Eye Hospital Group holds 56.53% of ISEC Healthcare as at the close of its mandatory general offer last month. Its bid vehicle Aier Eye International triggered the offer after buying a 35% stake in the company last August.

The table below details the 18 healthcare services stocks and two healthcare REITs on SGX, sorted by market cap.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name
			</td>
			<td>
			SGX Code
			</td>
			<td>
			Market Cap (S$M)
			</td>
			<td>
			Total Return 2019 (%)
			</td>
			<td>
			Total Return 1Y (%)
			</td>
		</tr>
<tr>
<td>
			IHH HEALTHCARE
			</td>
			<td>
			Q0F
			</td>
			<td>
			16,144
			</td>
			<td>
			4.5
			</td>
			<td>
			-0.6
			</td>
		</tr>
<tr>
<td>
			PARKWAY LIFE REIT
			</td>
			<td>
			C2PU
			</td>
			<td>
			2,057
			</td>
			<td>
			31.9
			</td>
			<td>
			31.3
			</td>
		</tr>
<tr>
<td>
			RAFFLES MEDICAL GROUP
			</td>
			<td>
			BSL
			</td>
			<td>
			1,846
			</td>
			<td>
			-6.9
			</td>
			<td>
			-10.0
			</td>
		</tr>
<tr>
<td>
			THOMSON MEDICAL GROUP
			</td>
			<td>
			A50
			</td>
			<td>
			1,613
			</td>
			<td>
			-12.0
			</td>
			<td>
			-17.3
			</td>
		</tr>
<tr>
<td>
			FIRST REIT
			</td>
			<td>
			AW9U
			</td>
			<td>
			798
			</td>
			<td>
			9.9
			</td>
			<td>
			7.7
			</td>
		</tr>
<tr>
<td>
			TALKMED GROUP
			</td>
			<td>
			5G3
			</td>
			<td>
			677
			</td>
			<td>
			-10.7
			</td>
			<td>
			-4.3
			</td>
		</tr>
<tr>
<td>
			Q&amp;M DENTAL GROUP
			</td>
			<td>
			QC7
			</td>
			<td>
			377
			</td>
			<td>
			-2.3
			</td>
			<td>
			-1.3
			</td>
		</tr>
<tr>
<td>
			OUE LIPPO HEALTHCARE
			</td>
			<td>
			5WA
			</td>
			<td>
			258
			</td>
			<td>
			-10.8
			</td>
			<td>
			-14.7
			</td>
		</tr>
<tr>
<td>
			ISEC HEALTHCARE
			</td>
			<td>
			40T
			</td>
			<td>
			186
			</td>
			<td>
			48.6
			</td>
			<td>
			45.0
			</td>
		</tr>
<tr>
<td>
			SINGAPORE MEDICAL GROUP
			</td>
			<td>
			5OT
			</td>
			<td>
			145
			</td>
			<td>
			-25.0
			</td>
			<td>
			-28.6
			</td>
		</tr>
<tr>
<td>
			SINGAPORE O&amp;G
			</td>
			<td>
			1D8
			</td>
			<td>
			136
			</td>
			<td>
			-10.7
			</td>
			<td>
			-12.7
			</td>
		</tr>
<tr>
<td>
			HEALTHWAY MEDICAL GROUP
			</td>
			<td>
			5NG
			</td>
			<td>
			117
			</td>
			<td>
			-18.8
			</td>
			<td>
			-16.1
			</td>
		</tr>
<tr>
<td>
			CORDLIFE GROUP
			</td>
			<td>
			P8A
			</td>
			<td>
			110
			</td>
			<td>
			23.6
			</td>
			<td>
			3.4
			</td>
		</tr>
<tr>
<td>
			CLEARBRIDGE HEALTH
			</td>
			<td>
			1H3
			</td>
			<td>
			79
			</td>
			<td>
			-17.4
			</td>
			<td>
			-22.3
			</td>
		</tr>
<tr>
<td>
			HC SURGICAL SPECIALISTS
			</td>
			<td>
			1B1
			</td>
			<td>
			78
			</td>
			<td>
			-9.9
			</td>
			<td>
			-8.5
			</td>
		</tr>
<tr>
<td>
			AOXIN Q &amp; M DENTAL
			</td>
			<td>
			1D4
			</td>
			<td>
			76
			</td>
			<td>
			-19.2
			</td>
			<td>
			-13.1
			</td>
		</tr>
<tr>
<td>
			ASIAN HEALTHCARE SPECIALISTS
			</td>
			<td>
			1J3
			</td>
			<td>
			72
			</td>
			<td>
			-12.7
			</td>
			<td>
			-12.7
			</td>
		</tr>
<tr>
<td>
			ALLIANCE HEALTHCARE GROUP
			</td>
			<td>
			MIJ
			</td>
			<td>
			36
			</td>
			<td>
			-52.1
			</td>
			<td>
			0.0
			</td>
		</tr>
<tr>
<td>
			MEDINEX LTD
			</td>
			<td>
			OTX
			</td>
			<td>
			33
			</td>
			<td>
			6.3
			</td>
			<td>
			3.5
			</td>
		</tr>
<tr>
<td>
			ASIAMEDIC LTD
			</td>
			<td>
			505
			</td>
			<td>
			12
			</td>
			<td>
			-39.1
			</td>
			<td>
			-31.1
			</td>
		</tr>
</tbody></table>
Source: Bloomberg &amp; StockFacts (data as of 16 Jan 2020)

*Date range: 31 May 2019 (IPO date) to 31 Dec 2019

Robust Industry Outlook

Asia’s healthcare market is estimated to expand to more than US$2.7 trillion by 2020, according to <a href="https://economictimes.indiatimes.com/industry/miscellaneous/asian-healthcare-market-to-grow-over-2660-billion-by-2020/articleshow/61036651.cms">data</a> from Economic Times and MENA Research Partners. This is mainly due to improved access to healthcare facilities amid higher government and private investments, which in turn has boosted demand for services and products.

The Asia Pacific is also the fastest ageing region in the world, with the elderly population expected to grow by over 200 million between now and 2030, according to a <a href="https://www.marsh.com/content/dam/marsh/Documents/PDF/asia/en_asia/Advancing%20into%20the%20Golder%20Years%20-%20Cost%20of%20Healthcare%20for%20Asia%20Pacifics%20Elderly.pdf?fireglass_rsn=true">report</a> from the Marsh and McLennan Companies' Asia Pacific Research Center. This represents a 71% rise in the number of elderly in this region, compared to increases of 55% in North America and 31% in Europe over the same period.

In Singapore, annual public and private expenditure for elderly healthcare is projected to jump 10-fold to US$49 billion by 2030. Across the wider Asia-Pacific, annual elderly healthcare expenditure in 2030 will be five times the 2015 total, the report added.

Finance Minister Heng Swee Keat has estimated that Singapore’s healthcare spending will rise to S$11.7 billion in FY19 from S$10.6 billion the previous year, as the government boosts patient subsidies while expanding clinical services and capacity. Singapore’s average annual healthcare spending is also forecast to increase to almost 3% of gross domestic product (GDP) over the next decade from 2.2% currently, reflecting a gain of nearly 0.8-percentage point of GDP.
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SGX lists 18 healthcare services companies and two healthcare REITs with a combined market cap of about S$25 billion. They operate patient care services and facilities, both locally and worldwide, including laboratories, hospitals, nursing homes and clinics. 
	 
	
Over 2019, the five best-performing healthcare services players were: ISEC Healthcare (+48.6%), Parkway Life REIT (+31.9%), Cordlife (+23.6%), First REIT (+9.9%) and Medinex (+6.3%). The five have averaged a total return of 24.1% over the period, bringing their one-year total return to 18.2%. 
	 
	Singapore’s healthcare sector is poised to enjoy multi-year growth prospects, driven by the region’s accelerated ageing rates and the rise of lifestyle diseases. Investors can participate in the structural Asian healthcare theme through SGX-listed companies that are rapidly expanding into international markets to meet growing patient demand.

Singapore’s healthcare sector is typically viewed as defensive and poised to enjoy multi-year growth prospects. Drivers of Asia’s increased healthcare spending levels include accelerated ageing rates, the rise of lifestyle diseases like diabetes and hypertension, as well as growing disposable incomes.

The listed healthcare sector in Singapore, as tracked by the benchmark iEdge SG All Healthcare Index, comprises companies that operate in the segments of pharmaceuticals and biotechnology, healthcare and patient services, as well as medical equipment and supplies. SGX also lists two healthcare REITs that operate patient care facilities such as hospitals and nursing homes in Southeast and Northeast Asia.

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 demand.

 

Healthcare Services Players

There are 18 healthcare services companies and two healthcare REITs listed on SGX with a combined market capitalisation of about S$25 billion. They operate patient care services and facilities, both locally and worldwide. These facilities include laboratories, hospitals, nursing homes and clinics that offer services and treatments ranging from family medicine, dentistry, endoscopy and aesthetics to gynaecology, oncology, paediatrics, orthopaedics, ophthalmology, and even cord blood banking.

The majority of Singapore’s healthcare services providers have also pursued international expansion plans in recent years. Their 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.

Over 2019, the five best-performing healthcare services players were: ISEC Healthcare (+48.6%), Parkway Life REIT (+31.9%), Cordlife Group (+23.6%), First REIT (+9.9%) and Medinex Ltd (+6.3%). The five have averaged a total return of 24.1% over the period, bringing their one-year total return to 18.2%.

Note that China’s Aier Eye Hospital Group holds 56.53% of ISEC Healthcare as at the close of its mandatory general offer last month. Its bid vehicle Aier Eye International triggered the offer after buying a 35% stake in the company last August.

The table below details the 18 healthcare services stocks and two healthcare REITs on SGX, sorted by market cap.




			Name
			
			
			SGX Code
			
			
			Market Cap (S$M)
			
			
			Total Return 2019 (%)
			
			
			Total Return 1Y (%)
			
		


			IHH HEALTHCARE
			
			
			Q0F
			
			
			16,144
			
			
			4.5
			
			
			-0.6
			
		


			PARKWAY LIFE REIT
			
			
			C2PU
			
			
			2,057
			
			
			31.9
			
			
			31.3
			
		


			RAFFLES MEDICAL GROUP
			
			
			BSL
			
			
			1,846
			
			
			-6.9
			
			
			-10.0
			
		


			THOMSON MEDICAL GROUP
			
			
			A50
			
			
			1,613
			
			
			-12.0
			
			
			-17.3
			
		


			FIRST REIT
			
			
			AW9U
			
			
			798
			
			
			9.9
			
			
			7.7
			
		


			TALKMED GROUP
			
			
			5G3
			
			
			677
			
			
			-10.7
			
			
			-4.3
			
		


			Q&amp;M DENTAL GROUP
			
			
			QC7
			
			
			377
			
			
			-2.3
			
			
			-1.3
			
		


			OUE LIPPO HEALTHCARE
			
			
			5WA
			
			
			258
			
			
			-10.8
			
			
			-14.7
			
		


			ISEC HEALTHCARE
			
			
			40T
			
			
			186
			
			
			48.6
			
			
			45.0
			
		


			SINGAPORE MEDICAL GROUP
			
			
			5OT
			
			
			145
			
			
			-25.0
			
			
			-28.6
			
		


			SINGAPORE O&amp;G
			
			
			1D8
			
			
			136
			
			
			-10.7
			
			
			-12.7
			
		


			HEALTHWAY MEDICAL GROUP
			
			
			5NG
			
			
			117
			
			
			-18.8
			
			
			-16.1
			
		


			CORDLIFE GROUP
			
			
			P8A
			
			
			110
			
			
			23.6
			
			
			3.4
			
		


			CLEARBRIDGE HEALTH
			
			
			1H3
			
			
			79
			
			
			-17.4
			
			
			-22.3
			
		


			HC SURGICAL SPECIALISTS
			
			
			1B1
			
			
			78
			
			
			-9.9
			
			
			-8.5
			
		


			AOXIN Q &amp; M DENTAL
			
			
			1D4
			
			
			76
			
			
			-19.2
			
			
			-13.1
			
		


			ASIAN HEALTHCARE SPECIALISTS
			
			
			1J3
			
			
			72
			
			
			-12.7
			
			
			-12.7
			
		


			ALLIANCE HEALTHCARE GROUP
			
			
			MIJ
			
			
			36
			
			
			-52.1
			
			
			0.0
			
		


			MEDINEX LTD
			
			
			OTX
			
			
			33
			
			
			6.3
			
			
			3.5
			
		


			ASIAMEDIC LTD
			
			
			505
			
			
			12
			
			
			-39.1
			
			
			-31.1
			
		

Source: Bloomberg &amp; StockFacts (data as of 16 Jan 2020)

*Date range: 31 May 2019 (IPO date) to 31 Dec 2019

Robust Industry Outlook

Asia’s healthcare market is estimated to expand to more than US$2.7 trillion by 2020, according to data from Economic Times and MENA Research Partners. This is mainly due to improved access to healthcare facilities amid higher government and private investments, which in turn has boosted demand for services and products.

The Asia Pacific is also the fastest ageing region in the world, with the elderly population expected to grow by over 200 million between now and 2030, according to a report from the Marsh and McLennan Companies' Asia Pacific Research Center. This represents a 71% rise in the number of elderly in this region, compared to increases of 55% in North America and 31% in Europe over the same period.

In Singapore, annual public and private expenditure for elderly healthcare is projected to jump 10-fold to US$49 billion by 2030. Across the wider Asia-Pacific, annual elderly healthcare expenditure in 2030 will be five times the 2015 total, the report added.

Finance Minister Heng Swee Keat has estimated that Singapore’s healthcare spending will rise to S$11.7 billion in FY19 from S$10.6 billion the previous year, as the government boosts patient subsidies while expanding clinical services and capacity. Singapore’s average annual healthcare spending is also forecast to increase to almost 3% of gross domestic product (GDP) over the next decade from 2.2% currently, reflecting a gain of nearly 0.8-percentage point of GDP.



Five Best-Performing Healthcare Services Stocks Returned 24% in 2019

Raffles Medical Group

Five Best-Performing Healthcare Services Stocks Returned 24% in 2019