The Singapore market was among the top performers in the region this year. Much of the gain has been ascribed to the three local banks, whose combined weightage of more than half of the Straits Times Index (STI) helped lift the benchmark index to a 17-year high. DBS Group Holdings, in particular, was up by two-fifths.
Besides the three banks, many other key STI component stocks, including Singapore Exchange , Singapore Telecommunications , Sats and Hongkong Land, rose between 20% and 30% year-to-date. The best-performing STI component stock was Yangzijiang Shipbuilding Holdings, which gained around 80%.
Interestingly, the stocks that performed best this past year were all non-blue chips outside the 30-member index. As drawn from data from Jan 2 to Dec 18, the top 10 gainers on the Singapore Exchange (SGX) saw their share prices increase over 100%, with the top counter recording a share price gain of over 500% in the case of Pharmesis International.
In other words, if you had invested $100 in Pharmesis at the start of the year, your holdings would have reached $612.24 in value on Dec 18 or $663 at its peak on Nov 25. If you had invested the same amount in the 10th-place Wee Hur Holdings , your holdings would have reached $224.64 in value on Dec 18, or $256.52 at its peak on April 9.
Except for a handful of stocks, including Centurion Corp, Oiltek International and Beng Kuang Marine , which have received closer attention from analysts and the wider investment community, most of the top 10 stocks year to date are penny counters that have very much flown under most people’s radars.
Some of these top-performing penny stocks have a turnaround story, which are making the gains off the bottom, while others are in the midst of some restructuring or recapitalisation exercise, where new shareholders have come on board to help fund new growth. As indicated by how their share prices have already jumped, the investment community is very much buying ahead of fundamentals.
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Here are the top 10 SGX outperformers for the year, as at Dec 18, in descending order.
10. Wee Hur Holdings
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Cashing out on student dorm portfolio
Formerly known as Vietnam Investment Consultant, construction services provider Wee Hur Holdings traded at 19.4 cents on Jan 2 before surging to 50.5 cents on Oct 23, its highest level since March 2013. On Dec 18, shares in Wee Hur traded at 43 cents, up 124.64% since the start of the year.
In 1HFY2024 ended June 30, Wee Hur posted a profit from continuing operations of $75.07 million, up 488% y-o-y. This was mainly attributable to improved performance at its Tuas View Dormitory and higher profits from investments in associates and joint ventures.
A few months after announcing the improved financial performance, the Australian Financial Review reported that US property management giant Greystar was acquiring Wee Hur’s PBSA business in Australia. This was confirmed on Dec 16, when Wee Hur announced that it had entered into an agreement to sell its portfolio of seven PBSA assets to Greystar for A$1.6 billion ($1.37 billion).
Following the transaction, Wee Hur is set to retain a 13% stake through its subsidiary, Wee Hur (Australia).
Its net proceeds of approximately $320 million is expected to go towards Wee Hur’s strategic growth, support its reinvestment in core business, and expansion into new areas such as alternative investments.
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Upon completion of the deal, Wee Hur’s net tangible asset value per share is set to increase from 66 cents to 73 cents.
The transaction is set to be completed within the next six months, subject to Greystar obtaining Foreign Investment Review Board approvals and Wee Hur obtaining consent from its shareholders.
9. Biolidics
Ditching healthcare for e-sports
Biolidics was listed back in December 2018 as a healthcare company focusing on diagnostics. In the past year, with its healthcare business in a decline, it has brought on new controlling shareholders in a bid to pay off debt and to diversify. In the meantime, its share price at the beginning of the year was at below 1.5 cents and stayed so until earlier this month, when it started surging to close at 3.2 cents on Dec 18.
In its 3QFY2024 ended September, Biolidics reported a loss of $420,000, somewhat reduced from red ink of $596,000 incurred in the year earlier. Revenue in the same period was $15,000, up from $14,000.
On July 24, the company announced plans to pay nearly $4.1 million to acquire an entity called Shenzhen Xiaozhao Network Technology Co. Biolidics is paying for the acquisition, which was completed on Oct 22, by issuing 452 million shares at 0.9 cents each.
As a result of this acquisition, Biolidics’ share base has been enlarged by around 27%. FVA Advisory, an independent valuer, estimates that the target is worth between $3.975 million and $4.23 million.
According to Biolidics, the acquisition of Shenzhen Xiaozhao Network Technology will be its move into multi-channel networking, e-sports and live-streaming business sector.
The target, according to Biolidics, has an attractive business model as an integrated marketing services provider in the gaming industry, focusing on the promotion and distribution of mobile games as well as e-sports events.
The target, which was incorporated on April 9 and therefore has no “material historical track record”, is nonetheless seen as a “suitable acquisition” to kickstart the new business and operations, which will allow Biolidics to achieve more consistent and sustainable financial growth.
8. Broadway Industrial Group
In the midst of a general offer
Shares in precision components and assemblies provider Broadway Industrial Group traded at 8.8 cents on Jan 2 before gradually rising to 20 cents on Dec 18, up 138.47%. The company last traded at the current levels in April 2022.
At the start of the year, Broadway announced the conclusion of an arbitration involving the terminated sale of its hard disk business in China. Although the company says the arbitration award has no material impact on the financial performance for FY2023 ended December 2023 and FY2024, the news led its share price to peak at a month’s high of 10.7 cents on Jan 15.
In 1HFY2024, Broadway posted earnings of $8.4 million, reversing from a loss of $1.1 million in 1HFY2023. This was mainly led by higher sales, a favourable product mix and higher gross margins in the hard disk drive business segment.
In October, Broadway’s substantial shareholder Lau Leok Yee and non-independent non-executive chairman Lew Syn Pau agreed to sell their collective stake of 43.32% in the company to an entity wholly owned by Taiwan Stock Exchange-listed Patec Precision Industry for 19.7 cents each. Patec provides engineering solutions to the metal-forming industry and has two business units: engineering solutions and components manufacturing. The sale triggered a mandatory general offer.
On Nov 14, it was announced that the mandatory conditional cash offer for all the shares Patec does not already own in Broadway had turned unconditional. At 6pm on the same day, Patec received valid acceptances amounting to some 50.9 million shares, representing an 11.19% stake in Broadway’s total issued share capital. With this, Patec owns nearly 247.9 million shares in Broadway, representing a 54.51% stake of Broadway’s maximum potential issued share capital.
Patec’s offer will close at 5.30pm on Dec 23.
7. Centurion Corp
Dorm business expanding steadily
Shares of purpose-built workers accommodation (PBWA) provider Centurion Corp traded at 40.5 cents on Jan 2 before hitting a peak of $1 on Dec 4 — its highest level since July 2007. On Dec 18, the stock was traded at 96 cents, up 148.12% since the start of the year.
For its most recent 3QFY2024 ended Sept 30, Centurion posted revenue of $62.1 million, up 22% from 3QFY2023. Revenue also rose 25% y-o-y to $186.5 million.
This was led by strong occupancy rates and healthy rental reversions across the company’s portfolio PBWA and purpose-built student accommodation (PBSA).
Analysts continue to be upbeat on the stock following the results release. PhillipCapital’s Yik Ban Chong likes Centurion’s positive portfolio growth pipeline and ongoing capacity expansions. By the end of this year, 1,650 Singapore PBWA beds, 680 Malaysia PBWA beds and 550 Hong Kong PBWA beds will be operational.
Meanwhile, 155 Hong Kong PBSA beds have been operational since September and are expected to ramp up occupancy gradually. For its build-to-rent segment, 400 units have been secured under master lease agreements in Xiamen, China, and are expected to be operational this month.
Looking ahead, Centurion is also likely to be the “clear winner” of the Johor-Singapore Special Economic Zone (JS-SEZ) as it has eight worker’s dormitories in Malaysia, with 66% of them located in Johor. The company is exploring opportunities to develop about 7,000 beds in Johor’s Iskandar, although UOB Kay Hian’s Adrian Loh believes this depends on the progress of the JS-SEZ.
With a bright outlook, Loh expects continued outperformance for Centurion in the next 12 months.
6. GS Holdings
From chicken rice to distributing drinks
GS Holdings was listed in 2016. Its business was providing dishwashing services to F&B operators, including food court chain Koufu, whose co-founder Pang Lim and GS Holdings’ CEO, Pang Kok, are brothers.
At the beginning of the year, GS Holdings was trading at just 2 cents, and has steadily gained to close at 4.5 cents on Dec 18.
After GS Holdings divested the dishwashing business in 2020, it switched to owning a chain of F&B outlets focusing on chicken rice under the Sing Swee Kee brand.
In FY2023 ended Dec 30, 2023, its revenue increased by 30% y-o-y to $9.2 million, but losses doubled y-o-y to $14.75 million. While the company incurred higher operating costs, the big hit came from the $22.4 million impairment of a debt.
In the most recent 3QFY2024, losses narrowed by 93.6% y-o-y to $492,000 on an 8.9% drop in revenue to $2.5 million.
Pang Kok relinquished his CEO role on Dec 21, having already stepped down from his other role as an executive director in June. He is making way for a new controlling shareholder, Elaine Teh Chooi Peng, who is injecting her beverage distributor, Octopus Distribution Networks, into GS Holdings for $11.8 million.
According to GS Holdings, Octopus has a product portfolio of over 1,500 stock-keeping units from around 200 beverage brands from 50 global brand owners.
Besides cash totalling $5.5 million in two tranches, GS Holdings is paying Teh the remaining $6.3 million by issuing more than 166.2 million new shares at 3.79 cents each. Upon completion of the deal, Teh will hold a stake of 16.01% in GS Holdings. GS Holdings started the year closing at 1.8 cents on Jan 2 and hit 5 cents on Dec 23.
5. Soilbuild Construction Group
Order book crosses $1 bil
Shares in Soilbuild Construction Group traded at 3 cents on Jan 2 before spiking to a year’s high of 11.4 cents on June 18. The stock has since corrected to trade at 80 cents on Dec 18, up 176.36% since the start of the year.
In 1HFY2024, Soilbuild’s earnings surged 444.5% y-o-y to $7.4 million, surpassing its FY2023 net profit of $7.3 million. Revenue grew 19.5% y-o-y to $153.9 million on contributions from its two core business divisions, construction and precast and prefabrication in Singapore.
As at Nov 20, Soilbuild’s order book stood at around $1.23 billion, including two newly awarded contracts with an aggregate value of $85.5 million. It also includes the largest construction project secured by the company in its history at Tuas Port, with a contract value of $647.5 million. The project is expected to be completed by 3Q2027.
The company is actively playing up its green credentials. “As a green builder, we will continue to increase the use of technology and data to better enable our customers to adapt to the energy transition, and develop resilient infrastructure within their property portfolios,” says CEO Lim Han Ren.
4. Beng Kuang Marine
Becoming a more streamlined entity
Beng Kuang Marine is among the numerous local firms providing support services for offshore and marine customers. It was listed in 2004 amid the buoyant industry upcycle. In the multi-year downturn that followed, not all survived as many were forced to restructure their businesses.
Beng Kuang Marine has managed to pull through the downturn. With the industry back in favour, the divestment of its loss-making businesses, and new funds raised, Beng Kuang Marine’s prospects are looking up. It has even exited the SGX Watch-list.
Under CEO Yong Jiunn Run, a former CIMB banker, the company stepped up its capital management, adopted an asset-light model and streamlined capital-intensive activities to be more efficient.
For some time, the company was saddled with an underperforming asset: a livestock carrier, which it eventually got rid of. “There was no chance for Beng Kuang to emerge as a key player in the market, be competitive and make a difference,” CEO Yong recalls in a recent interview with The Edge Singapore.
In its most recent business update for 3QFY2024 ended Sept 30, the company reported revenue of $26.77 million, up 25.1% y-o-y. Profit after tax in the same period was up 27.2% y-o-y to $3.79 million. From just five cents as at Jan 2, Beng Kuang Marine shares closed at 21 cents on Dec 18.
3. Salt Investments
Emerging offshore and marine player
For some years, what was then called Jasper Investments , a marine logistics provider, had no operating businesses. Its last reported revenue was US$257,000 for its FY2018 ended March 31, 2018. In its most recent 2QFY2025 ended Sept 30, it still reported zero revenue and incurred a bigger 94% loss of $498,000 from a year ago. This brings its 1HFY2025 loss to $692,000, up 46% y-o-y. At the start of the year its share price was languishing at the rock bottom of 0.1 cents.
Yet, things were already in motion that helped the company become one of the best-performing stocks this year, with the counter making it to the most actively traded list on numerous days.
The company, now led by new CEO Dennis Goh, announced in June that it had a new group of investors, including Singapore entrepreneur Koh Boon Hwee and Terence Wong of Azure Capital, a long-time business partner of Goh.
Renamed Salt Investments, the company is eyeing growth in the offshore and marine sector. After acquiring Prosper Excel Engineering recently, it announced on Dec 19 talks to acquire a majority stake in marine lubricant supplier TT Oil, indirectly held by Wong Shun Lee, who is part of a group of investors helping to recapitalise Salt Investments.
According to Salt Investments, TT Oil will help bring together the “competitive strengths and combined business and funding networks” of both parties.
Separately, TT Oil has an arrangement to charter a vessel from Prosper Excel Engineering to replace an existing charter with another ship owner. The stock traded at 0.1 cents on Jan 2 and 0.4 cents on Dec 18.
2. Oiltek International
Expanding order book
Biodiesel process and technology solution provider Oiltek International’s share price gained 417.24% to $1.06 on Dec 18 after opening at 23 cents on Jan 2.
The surge came amid a growing order book, which led to better earnings. In 3QFY2024 ended Sept 30, Oiltek grew its revenue by 23.9% y-o-y to RM168.1 million, thanks to higher revenue from the company’s edible and non-edible oil refinery segment, as well as its product sales and trading segment. Due to higher margins, its earnings surged by 83.2% y-o-y to RM8.98 million.
Oiltek attributes the growth in its oil refinery segment to population growth and the growing demand for food, noting that the trend benefits the company as it provides solutions to all types of vegetable oils, including palm and soybean oil. It is seen to ride on the growing demand for renewable energy, specifically sustainable aviation fuel, which is being promoted within the industry.
Earlier in July, the company also secured a contract to design, fabricate and commission a dry fractionation plant to produce refined and bleached palm oil. The contract increased Oiltek’s order book to a record of RM430.9 million, which will be fulfilled over the next 18 to 24 months.
Investors have another reason to like Oiltek. It does not have a formal dividend policy but has maintained a payout ratio of between 40% and 44% since listing in 2022. If this ratio is maintained at 42% for FY2024, Oiltek is expected to pay out 2.3 cents per share, marking a 45.3% y-o-y jump in dividends.
1. Pharmesis International
New acquisition drives share price surge
Little-known Pharmesis International was the top-performing stock on the SGX between Jan 1 and Dec 18 this year, rising 512.24% to 60 cents after hitting a 52-week high of 70 cents in November.
The investment holding company has two subsidiaries: Chengdu Kinna Pharmaceutical, which produces “Western drugs”, and Sichuan Longlife Pharmaceutical, which produces Traditional Chinese Medicine (TCM) drugs. Pharmesis’ pharmaceutical products are sold in mainland China as ATT, Gulin Gansu and Er Ding granules.
Shares in Pharmesis began surging in late September after trading between 10 and 15 cents for 30 months. The sudden breakout could be attributed to the company announcing on Sept 23 that it plans to acquire the remaining 19% equity interest in subsidiary Sichuan Longlife, which was completed a week later.
At its IPO in 2004, Sichuan Longlife was a 51%-owned subsidiary of Pharmesis. In 2019, Pharmesis acquired an additional 30% of Sichuan Longlife for RMB15.7 million.
In its Sept 23 bourse filing about the proposed acquisition, Pharmesis says Sichuan Longlife is “projected to be profitable next year.” However, Pharmesis itself reported a much wider net loss of RMB4.01 million ($741,815) for 1HFY2024 ended June 30, compared to a net loss of RMB727,000 in the prior year.
In its FY2023 annual report, released in April, Pharmesis called FY2023 “the most challenging year [in its] history”. “On July 26, 2023, severe flash flooding arising from the torrential rain damaged the production equipment and inventory at Longlife Plant, and production was temporarily disrupted for over two months,” said the report. This incurred costs of RMB4.8 million, comprising RMB3.5 million of inventories that were written off and RMB1.3 million in repair costs.
As at April 2, Pharmesis’ top five shareholders own a combined 68.88% of the 27.6 million shares, and its top 20 shareholders own a combined 89.02% of the share base.
