Markets have turned south for the better part of this year, and negative news of all kinds hog the global and local headlines daily. Nonetheless, there’s always an excuse to share some positive news.
The Edge Singapore, with more than 20 years covering the Singapore corporate scene, is happy to present this year’s winners of the Billion Dollar Club (BDC) as well as the winners of the Centurion Club.
The former marks Singapore-listed companies with a market value of more than $1 billion that have come out tops in three key criteria: Returns to shareholders, earnings growth, and return on equity (ROE) over the three preceding years. The Centurion Club, meanwhile, cheers on those with a market value of at least $100 million towards the $1 billion mark.
The standout company in this category has got to be PropNex. Led by the high-profile chairman and CEO Mohd Ismail Gafoor, the property agency firm was in overdrive over the last few years. It rapidly expanded the number of salespersons and captured a bigger share of the growing property market pie —seemingly oblivious to the economic woes of the pandemic. For all the results put in by the PropNex team, it made a clean sweep of all three categories within the real estate sector of the Centurion Club. And it topped the entire field of Centurion Club winners and the overall winner — not bad for its debut in the club.
Can PropNex continue its growth momentum and become a BDC winner soon? Perhaps. After all, this feat has been done before. This year’s overall winner of the BDC, AEM Holdings, was a Centurion Club just two years ago. One might argue AEM had the semiconductor upcycle on its side, but investors will agree that the savvy management team led by chairman Loke Wai San has delivered. Unfortunately, the industry downturn is here, and AEM won’t be entirely unscathed despite its strong niche. We will be watching this space closely next year.
Like it or not, the pandemic is far from over. Although the worst is probably over, the wider ramifications ranging from geopolitics to the undermining of free trade will continue to cloud over the global economy and certainly so for tiny Singapore, which is more exposed than most. Nonetheless, there are various bright spots.
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For example, several REITs with retail assets have reported that recent tenant sales have exceeded pre-pandemic levels. Parkway Life REIT, which owns a growing portfolio of healthcare assets, has demonstrated an enviable feat of growing its portfolio and distribution per unit consistently since it was listed in 2007. Ho Bee Land, a leading local property company, has delivered the best returns to shareholders among its peers — never mind it is a closely-held firm that activist shareholders usually frown upon. Frencken Group, which astutely ensures a diversified customer base, is well-poised to continue to ride through the various industry cycles. Silverlake Axis, meanwhile, is proactive in changing its model so that it can have a bigger recurring income stream even as it tries to win new customers. These are all companies that deserve support from investors.
Unfortunately, the string of potential delistings and privatisations happening among SGX-listed companies seems quite long this year. In a somewhat chicken and egg situation, some of these companies grouse that they have not been well appreciated by the market, with one current delisting attempt offer at half the book value. Other investors will retort that these companies don’t make themselves seen or heard.
End of the day, it is about the ecosystem supporting instead of feeding off one another. Undervalued listed companies need to feel appreciated by the market, while minority shareholders need to know they are not taken advantage of by controlling shareholders. The exchange and the regulators are constantly tweaking the platform and the rules of play so that a fair exchange of value can take place. However, they need to use the stick more often when it is required and not merely wave it.
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At The Edge Singapore, we will do our part to report on relevant developments in the market and profile listed companies with a good story to tell. And one way we are doing so is via each year’s BDC.
A big thank you to the Singapore Exchange Group for supporting us yet again, specifically by providing ESG data that constitutes the overall scores of the BDC companies.
Special thanks to professional services EY for being the knowledge partner of the BDC. We look forward to more years of fruitful partnerships with them.
And a big thank you too to the deserving management of the winning companies for their work delivering value to shareholders and the wider investment and markets ecosystem. By doing so, they help grow this space and create a more conducive and crucial platform for the million-dollar companies of today to become the billion-dollar companies of tomorrow.
Chan Chao Peh is the editor of The Edge Singapore
