Temasek Holdings is Singapore’s state-owned sovereign wealth fund that manages its assets using a long-term view and based on rigorous due diligence. Temasek holds a diverse range of assets ranging from private to public equities, and as of the end of the 2019 financial year (31 March 2019), the portfolio had a net value of S$313 billion, up slightly from 2018’s S$308 billion.
The fund’s total shareholder return over 10 years stood at 9%, and Temasek’s portfolio includes at least 25 listings on the Singapore Exchange (SGX). In a write-up published by SGX, it highlighted the three-best performing SGX-listed non-REIT stocks within Temasek’s portfolio on a three-year total return basis. Investors who are searching for steady performers need not look elsewhere, as Temasek’s portfolio provides a great starting point for research.
1. DBS Group Holdings Ltd
DBS Group Holdings Ltd (SGX: D05) is one of Singapore’s three big banks. The group provides a comprehensive range of banking services for individuals, SMEs, and multinational corporations. DBS has a presence in 18 markets and employs around 27,000 staff.
DBS registered a stellar total 3-year return of 88.5% and is the leader of the pack when it comes to performance. The bank has grown its revenue and net profit impressively over the last few years and has also committed to paying a quarterly dividend of S$0.30 per share from this fiscal year onwards.
2. ST Engineering Limited
ST Engineering Limited (SGX: S63), or STE, is a global technology, defence, and engineering group with four key divisions: aerospace, electronics, land systems, and marine. The group employs about 22,000 people and serves customers in more than 100 countries.
STE registered a total 3-year return of 33.6%. The group has been steadily growing its orders, and as of H1 2019, it reported a record-high order book of S$15.6 billion. Financial performance was also healthy as revenue for the half-year increased by 6% year on year, while net profit jumped by 14% year on year. In addition, the group has just acquired MRAS in April 2019 and assimilated it into the aerospace division, so investors should see a full contribution from this unit from Q3 2019 onward.
3. Keppel Corporation Limited
Keppel Corporation Limited (SGX: BN4) is a conglomerate with four key divisions: offshore and marine, property, infrastructure, and investments. The offshore and marine division provides oil rig design, construction, and repair and is one of the largest oil rig businesses globally. Property is parked under Keppel Land, which develops and invests in real estate throughout the region.
Keppel’s total 3-year return stood at 27.9%, and the group has sailed through one of the most challenging periods in its corporate history, with collapsing oil prices affecting its oil rig division from 2015 through to the present. While net profit was down for H1 2019 due to lower contributions from the en-bloc sale of properties, the group is now standing on firmer ground as it has multiple divisions to buffer the tough conditions in the oil and gas industry.
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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. The Motley Fool Singapore has recommended shares of DBS Group Holdings Ltd. Motley Fool Singapore contributor Royston Yang does not own shares in any of the companies mentioned.
Motley Fool Singapore 2019