Watch the video with Andrew Stotz or read a summary of the country profile on Singapore.
Four Pillars of GDP: Driven by net exports
Overall, growth in Singapore has remained slow. Unlike most of its peers in Asia, who are often led by private consumption, the Singapore economy is driven by net exports. Net exports were large enough to outpace a large contraction in investment.
Cheap valuations and high yields
Singapore has a cheap valuation as a whole due to relatively weak fundamentals. Only Taiwan offers a higher dividend yield than Singapore, according to consensus estimates going into 2017.
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More
A. Stotz Four Elements: Singapore’s rank relative to Asia
Overall, Singapore has a moderately attractive market in Asia considering all our four elements: Fundamentals, Valuation, Momentum, and Risk.
Fundamentals: Singapore has a poor return-on-equity below 10%.
Valuation: However, the market features attractive low valuation multiples and a high dividend yield.
Momentum: The country has poor earnings momentum, though price momentum is moderate.
Risk: The market offers low volatility and a relatively low beta to Asia ex-Japan.
Strong performance in Energy and Financials
Top 3 largest sectors: Industrials: 26% of the market. Real Estate: 22%. Financials: 19%.
Best sector & stock: Energy: +21.3% & Ezion Holdings: +43.1%
Worst sector & stock: Telecom: -7.2% & M1 Ltd: -21.0%
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