4 Stocks This Week (Safe Stocks) [25 September 2021] Dasin Retail Trust; Bukit Sembawang; Haw Par; Wing Tai
2021 has seen a lot of volatility in the financial markets. To reiterate, we saw the end of the longest-running bull market within the history of the stock market, the fastest dive into a bear market – which saw global markets dipping near to 30% in a one-month period between end-February to end-March – after which swing into an unexpected bull market after that.
As Singapore is an open economy, the Straits Times Index (STI) tends to be more impacted than the global market. Within the chart below, comparing the STI towards the FTSE All-World Index, we can clearly see that the STI tends to follow global markets quite closely and spike and dip more than the global economy.
At the tail-end of the chart in 2021, we can also see that the decline in Singapore stocks was more pronounced captured, while the upswing has not – when compared to global markets.
Against this backdrop, we look at 4 stocks that have been found to be “Low Volatility” in a Factor Research report, which was done in collaboration with the SGX.
Dasin Retail Trust (SGX: CEDU)
With an industry capitalisation of $617 million, Dasin Retail Trust comprises seven retail malls in the Chinese cities of Zhongshan, Zhuhai and Foshan.
In the earlier part of the year, COVID-19 impacted its properties quite severely. In February 2021, its average monthly turnover rent dropped 63.9% from the 4Q2021 levels. This has gradually recovered to -9.6% as at June 2021. Today, this is likely to have recovered even further.
In the Factor Research report, Dasin Retail Trust topped the “Low Volatility” factor rankings, out of more than 100 stocks, such as the STI stocks, for the 12 months ending 30 June 2021.
This means a decline of 4.2% for that year-to-date, to $0.80. This compares favourably to the STI, which has dropped 23.3% for that year-to-date. Its Net Asset Value (NAV) per Unit, as at 30 June 2021, was $1.37. Dasin Retail Trust also measured well in the “Growth”, “Size” and “Momentum” factors.
Bukit Sembawang (SGX: B61)
Incorporated in 1967, Bukit Sembawang is among the pioneer property developers in Singapore. Today, it mainly has subsidiaries in the property development and property investment space.
In its latest FY2021 results release, in May 2021, the entire extent of COVID-19 impact on its results was not yet apparent. In its responses to questions asked during its AGM, the organization stated that it had to implement safe distancing measures along with a range of precautionary measures. Nevertheless, its current target dates have accounted for possible delays and completion because of its project remain on track.
In the Factor Research report, Bukit Sembawang was second among the list of “Low Volatility” in Singapore.
In the year-to-date, it has declined by 22.6%. This really is slightly ahead of the STI's 23.3% decline within the year-to-date. It also measured well when it comes to “Growth” and “Quality” factors.
Bukit Sembawang has a market capitalisation of $945 million.
Haw Par Corp (SGX: H02)
Haw Par Corp continues to be listed on the SGX for more than 50 years, since 1969. Today, the audience has a strong consumer healthcare business in Tiger Balm and others, with a geographic footprint spanning a lot more than 100 countries. The group also has a leisure business in Thailand and it has investments in property, plus UOB, UOL and United Industrial Corporation (UIC).
Coming in 3rd in the “Low Volatility” in Singapore, Haw Par Corp also measured well within the “Quality” and “Growth” factors.
Since the start of 2021, Haw Par has dipped 27.1%. This is slightly worse compared with the STI, that has only dipped 23.3%. Today, Haw Par Corp includes a market capitalisation of $2.1 billion.
Wing Tai (SGX: W05)
Rounding from the top 4 stocks within the “Low Volatility” category was Wing Tai, a regional property developer indexed by Singapore. Wing Tai has a market capitalisation of $1.3 billion along with a NAV exceeding $4.0 billion.
In the Factor Research report, Wing Tai also measured well in the categories for “Momentum”. According to SGX, Wing Tai also had a net institutional inflow of over $28 million in the year-to-date.
Wing Tai's share price has dipped 13.9% since the start of 2021, performing better than the STI's 23.3% decline in value.