10 companies that beat the Straits Times Index (STI) in 2020

To say that 2020 has been a wild ride will be an understatement, especially in the stock markets.

We entered 2020 on the back of the longest bull run on record, quickly plunged into the fastest 30 per cent stock market decline in history after Covid-19 uncertainties unravelled, and subsequently re-entered a new bull run after markets gained 20 per cent in a matter of weeks.

What was the STI return in 2020?

At the end of 2020, Singapore’s benchmark index – the Straits Times Index (STI) – delivered a return of close to -8 per cent. This was a weak showing compared to other major global indexes, such as the S&P 500 which delivered a positive return of 18 per cent and ended close to its all-time highs.

Note that to gain investment exposure to the STI, we have to invest in one of the two STI ETFs listed on the Singapore Exchange (SGX).

Investing in the STI gives us market returns, which can be positive or negative in certain years, and allows us to invest passively. The big returns in the US market also show us that being diversified to different regions and business sectors is important.

Furthermore, if investors have the time and expertise to uncover stocks and monitor their portfolio, investing in individual stocks can lead to better outcomes.

While hindsight is 20/20, those who managed to beat the STI in 2020 would likely have invested in some of these top 10 companies listed on the SGX.

#10 Jiutian Chemical

Share price gain in 2020: 382.4 per cent

Share price at the start of 2020: $0.018

Share price at the end of 2020: $0.082

Dividend yield: –

Market Capitalisation: $162.8 million

China-based Jiutian Chemical was the 10th best performing stock on the SGX in 2020, with a share price gain of 382.4 per cent.

This was mainly driven by a drop in raw material prices and a corresponding increase in its finished product prices, as well as the permanent closure of a larger competitor in China due to urban planning initiatives.

This has propelled Jiutian Chemical to become the world’s second largest producer, behind another China-based firm, of dimethylformamide (DMF), which is used in the manufacturing process of consumer goods such as leather products, footwear soles, furniture, as well as used as a solvent in the petrochemical industry.

It also produces other products such as methylamine, sodium hydrosulfite and gas and oxygen. Its main customers are in Henan and other provinces surrounding it.

#9 Regal International

Share price gain in 2020: 413.3 per cent

Share price at the start of 2020: $0.015

Share price at the end of 2020: $0.077

Dividend yield: –

Market Capitalisation: $17.4 million

With a market capitalisation of $17.4 million, Regal International may be one of the smaller companies listed on the SGX. Nevertheless, its share price increase rose 413.3 per cent in 2020, making Regal International the 9th best performing stock on SGX.

Based in Sarawak, Regal International is an established property developer in Kuching and Kota Samarahan in East Malaysia. More recently, it has expanded into Bintulu, also in Sarawak, and into West Malaysia in Negeri Sembilan.

#8 Axington 

Share price gain in 2020: 432.0 per cent

Share price at the start of 2020: $0.044

Share price at the end of 2020: $0.19

Dividend yield: 10.7 per cent

Market Capitalisation: $54.4 million

Axington is another smaller company listed on SGX, with a market capitalisation of $54.4 million. Nevertheless, its share price has performed strongly in 2020, gaining 432.0 per cent in 2020 to be the 8th best performing stock on SGX.

Axington is in the business of providing integrated professional services – tax advisory, business consultancy, enterprise management system application and business support – in Malaysia. Its customers are mainly government-linked entities, private and public listed companies and multinational corporations.

#7 Leader Environmental Technologies 

Share price gain in 2020: 498.3 per cent

Share price at the start of 2020: $0.019

Share price at the end of 2020: $0.075

Dividend yield: –

Market Capitalisation: $99.4 million

Leader Environmental Technologies saw its share price increase close to 500 per cent during the year. It ended December strongly, gaining two-thirds of its share price increase from the lowest point in the month to the year-end.

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Leader Environment Technologies is an environmental protection solutions provider in China, mainly for wastegas and wastewater emissions.

#6 Zhongxin Fruit

Share price gain in 2020: 550.0 per cent

Share price at the start of 2020: $0.004

Share price at the end of 2020: $0.026

Dividend yield: –

Market Capitalisation: $27.4 million

Zhongxin Fruit’s share price gained 550 per cent in 2020. Nevertheless, it is yet another small cap stock with a market capitalisation of $27.4 million.

Zhongxin Fruit is a subsidiary of one of the world’s leading producer of fruit and vegetable juice concentrates. It produces mainly apple juice concentrates for soft drink, cider, yogurt and candies, and sells an edible by-product as animal feed.

#5 Oceanus 

Share price gain in 2020: 575.0 per cent

Share price at the start of 2020: $0.004

Share price at the end of 2020: $0.027

Dividend yield: –

Market Capitalisation: $655.0 million

While Oceanus is the 5th best performing stock on SGX with a return of 575 per cent, we also need to note that it is listed in the SGX Watchlist (it is in the process of being removed). Nevertheless, Yaacob Ibrahim joined Oceanus as an independent director on Sept 1, 2020 after ending his political career. During the year, it has also invested in a prawn breeding company.

Oceanus is a marine aquaculture specialist selling premium quality Japanese abalones. Giving the group a cost advantage, the group farms the abalone inland in tanks located along the coastal lines of Fujian and Shandong.

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#4 AnAn International 

Share price gain in 2020: 575.0 per cent

Share price at the start of 2020: $0.004

Share price at the end of 2020: $0.027

Dividend yield: –

Market Capitalisation: $114.2 million

AnAn International’s share price gained 575 per cent in 2020 – making it the 4th best performing stock in 2020.

AnAn International is an investment holding company in the energy business, managing energy trading and financial services and investments in the energy industry.

#3 Yinda Infocomm 

Share price gain in 2020: 772.7 per cent

Share price at the start of 2020: $0.011

Share price at the end of 2020: $0.096

Dividend yield: –

Market Capitalisation: $32.8 million

Within the top 3 performing stocks in 2020, Yinda Infocomm delivered a share price gain of 772 per cent in 2020.

Yinda Infocomm is a regional integrated communications solutions and service provider in Singapore, Malaysia, Thailand and Philippines. Its core capabilities include maintenance services, telecommunication implementation, outdoor construction and in-building coverage.

#2 UG Healthcare 

Share price gain in 2020: 1,153.6 per cent

Share price at the start of 2020: $0.050

Share price at the end of 2020: $0.585

Dividend yield: 0.4 per cent

Market Capitalisation: $360.5 million

It is not difficult to explain why UG Healthcare is the second-best performing SGX stocks in 2020. Soaring over 1,150 per cent, UG Healthcare is in the business of manufacturing rubber gloves in Malaysia.

Even with a vaccine on the horizon, demand for its medical gloves will not wane immediately. In fact, UG Healthcare is building a new facility in Malaysia to boost its production capacity to 1.2 billion pieces of gloves per annum.

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#1 Medtecs International 

Share price gain in 2020: 2,602.7 per cent

Share price at the start of 2020: $0.039

Share price at the end of 2020: $1.00

Dividend yield: 1.1 per cent

Market Capitalisation: $549.0 million

Not surprisingly, Medtecs International is the best performing stock on SGX with a stellar share price gain of over 2,600 per cent in 2020.

The group is in the business of supplying medical consumables and personal protective equipment, hospital wear, and workwear apparel. Demand for these products rocketed as Covid-19 spread globally.

Medtecs also provides integrated hospital services, including rental and laundry of linens, management of laundry facilities, hospital automation and other functions at hospitals in Taiwan and Philippines.

This article was first published in Dollars and Sense.