To The Moon

In the last article, we learned about energy stocks in SGX, which indeed brought us excellent results in 2022.

While energy and agriculture stocks have led global equity markets in gains for most of time, utility stocks have been among the least declining and most defensive sector.

Investors have long viewed the utilities sector as defensive, with listed stocks providing essential and regulated services and amenities to the public.

Mike Wilson, an analyst at Morgan Stanley, noted that health care, utilities, and real estate stocks are worth watching.

In the first 19 weeks of Singapore 2022, the five most actively traded stocks related to utilities had an average return of 3%, with a median of -3%.

Singapore’s five most traded Utility stocks include $SEMBCORP INDUSTRIES LTD(U96.SI)$ , $KEPPEL INFRA TRUST WEF 2015(A7RU.SI)$ , $CHINA EVERBRIGHT WATER LIMITED(U9E.SI)$ ,$SIIC ENVIRONMENT HOLDINGS LTD.(BHK.SI)$ and $UNION GAS HOLDINGS LIMITED(1F2.SI)$. The five stocks have averaged a 3% return in the 2022 YTD, followed by 40% in 2021, 25% in 2020 and 6% in 2019.

1. 3 Stocks Outperform $Straits Times Index(STI.SI)$

Since the end of 2018, all 3 stocks have outperformed the 19% return of $Straits Times Index(STI.SI)$ , $SEMBCORP INDUSTRIES LTD(U96.SI)$ by 133%, $KEPPEL INFRA TRUST WEF 2015(A7RU.SI)$ by 46% and $UNION GAS HOLDINGS LIMITED(1F2.SI)$ by 243%.

2. Detail Analysis

$SEMBCORP INDUSTRIES LTD(U96.SI)$ ranked first according to the latest data by SGX. It reported a 78% year-on-year increase in its 2021 net income to S$279 million, while the group's net income excluding special items rose 57% year-on-year to S$472 million.

$KEPPEL INFRA TRUST WEF 2015(A7RU.SI)$ has delivered positive returns in 2020, 2021 and 2022 year-to-date. Retail investors have been buyers of Keppel Infrastructure Trust. Its return of 5% since 2022 is similar to 7% in 2021, indicating that Keppel is a stable investment choice. The trust's portfolio is divided into three core sectors, namely distribution and networks, energy and waste, and water resources.

$UNION GAS HOLDINGS LIMITED(1F2.SI)$ 's return has fallen 17% year-to-date in 2022. However, in 2021, Union was the strongest performer among the five stocks with 58% return. Union Gas noted that the ongoingpandemic continues to disrupt the supply chain and is expected to worsen due to recent geopolitical tensions, leading to higher energy prices and resulting in higher operating costs for the group.

China Everbright Water and Shanghai Industrial Environment were also among the five most actively traded utility stocks on the SGX.

$CHINA EVERBRIGHT WATER LIMITED(U9E.SI)$ , an environmental company focused on water environment management, reported a 17% increase in net income attributable to shareholders to HK$1.2 billion in 2021.

$SIIC ENVIRONMENT HOLDINGS LTD.(BHK.SI)$ , a leading water treatment and environmental protection company in China, announced on May 13 that its net income attributable to shareholders increased by 9.8% to RMB176 million in the first quarter of 2022.

If you know more about utility stocks or Singapore stocks, please let me know~