Electronics industry has been backbone of Singapore economy for decades since independence. In the current internet era, demand for electronics related products has been increasing, supporting the share prices. Therefore, an investor may consider 60 electronics technology stocks in Singapore, especially those with growing businesses.
In this article, you will learn from Dr Tee on 9 Singapore Electronics Giant Stocks for longer term investing and / or short term trading with impact of COVID-19 crisis. Bonus for readers who could read every words of the entire article, additional references on 5G related stocks.
1) Electronics Giant Stocks
– Venture Corporation (SGX: V03)
– Valuetronics Holdings (SGX: BN2)
2) Computer / IT Giant Stocks
– Powermatic Data Systems (SGX: BCY)
– Ban Leong Technologies (SGX: B26)
3) Semiconductor / 5G Giant Stocks
– CEI Limited (SGX: AVV)
– Micro-Mechanics Holdings (SGX: 5DD)
– AEM Holdings (SGX: AWX)
– UMS Holdings (SGX: 558)
– Frencken Group (SGX: E28)
Electronics industry consists of many levels of products in value chain, from semiconductor to circuit boards to integrated electronics products. Singapore electronics industry mostly plays the roles as suppliers or subcontractors for other international electronics products. Electronics (especially for semiconductor) industry is cyclical in nature, stock is usually bullish with rising economy, bearish with declining economy.
Current COVID-19 crisis (雷电交加) does not significantly affect the electronics stocks due to the rising demand of certain electronics products (due to longer stay at home) and also support of 5G technology wave (especially for semiconductor related stocks). Most of the Singapore electronics technology stocks are at higher optimism level with short term trading opportunity while some stocks may even be considered for long term investing with stable dividend payment as passive incomes, which is uniquely different from US electronics technology stocks.
There are 60 Electronics Technology Stocks in Singapore (investor has to focus only on giant stocks for investing):
Acma Limited (SGX: AYV), Advanced Systems Automation (SGX: 5TY), Adventus Holdings (SGX: 5EF), AEI Corporation (SGX: AWG), AEM Holdings (SGX: AWX), Allied Technologies Limited (SGX: A13), Amplefield Limited (SGX: AOF), Asian Micro Holdings (SGX: 585), ASTI Holdings (SGX: 575), Avi Tech Electronics (SGX: BKY), Ban Leong Technologies (SGX: B26), CDW Holding (SGX: BXE), CEI Limited (SGX: AVV), CFM Holdings (SGX: 5EB), Chuan Hup Holdings (SGX: C33), CPH Limited (SGX: 539), Creative Technology (SGX: C76), Datapulse Technology (SGX: BKW), Dragon Group International (SGX: MT1), Dutech Holdings (SGX: CZ4), Duty Free International (SGX: 5SO), Ellipsiz Limited (SGX: BIX), Excelpoint Technology (SGX: BDF), Frencken Group (SGX: E28), Global Invacom Group (SGX: QS9), Global Testing Corporation (SGX: AYN), GP Industries (SGX: G20), Grand Venture Technology (SGX: JLB), HGH Holdings (SGX: 5GZ), Hu An Cable Holdings (SGX: KI3), ICP Limited (SGX: 5I4), Jadason Enterprises (SGX: J03), JEP Holdings (SGX: 1J4), Karin Technology Holdings (SGX: K29), Ley Choon Group (SGX: Q0X), Libra Group (SGX: 5TR), Manufacturing Integration Technology (SGX: M11), Maruwa Yen1k (SGX: M12), MeGroup Limited (SGX: SJY), Micro-Mechanics Holdings (SGX: 5DD), Plastoform Holdings (SGX: AYD), Polaris Limited (SGX: 5BI), Powermatic Data Systems (SGX: BCY), Renaissance United (SGX: I11), Serial System (SGX: S69), SEVAK Limited (SGX: BAI), Shinvest Holding (SGX: BJW), Sunright Limited (SGX: S71), Sunrise Shares Holdings (SGX: 581), SUTL Enterprise (SGX: BHU), Thakral Corporation (SGX: AWI), The Place Holdings (SGX: E27), Trek 2000 International (SGX: 5AB), TT International (SGX: T09), UMS Holdings (SGX: 558), Valuetronics Holdings (SGX: BN2), Venture Corporation (SGX: V03), Willas-Array Electronics Holdings (SGX: BDR), World Precision Machinery (SGX: B49).
From the table sorted below for 60 Singapore electronics stocks, only half are profitable (33 / 60 stocks were making money in businesses last year). Therefore, careful choices of giant electronics stocks are critical, some are at lower optimism share prices due to either stock market fear or actual business is affected during COVID-19 pandemic.
Most Singapore electronics stocks don’t pay dividend (only 23 / 60 stocks pay dividend). Even if they do, for example, Thakral Corporation (SGX: AWI) and CDW Holding (SGX: BXE) with about 10% dividend yield, are not good dividend stocks due to weaker business fundamental.
Many electronics stocks (36 / 60) have Price-to-Book ratio ($ / NAV = PB) < 1 with discount over asset but majority do not have high quality asset related to cash or properties.
For most Singapore electronics stocks, main strategy would be momentum trading or dividend investing, therefore business growth is much more important than undervalue price to sustain the dividend payment in longer term.
| No | Name | Code | ROE (%) | Dividend Yield (%) | PB = Price /NAV |
| 1 | Accrelist Limited | QZG | – | – | 0.31 |
| 2 | Acma Limited | AYV | – | – | 0.31 |
| 3 | Advanced Systems Automation | 5TY | – | – | – |
| 4 | Adventus Holdings | 5EF | – | – | 1.71 |
| 5 | AEI Corporation | AWG | – | – | 0.95 |
| 6 | AEM Holdings | AWX | 39.28 | 1.4 | 5.25 |
| 7 | Allied Technologies Limited | A13 | – | – | 0.30 |
| 8 | Amplefield Limited | AOF | 2.29 | – | 0.43 |
| 9 | Asian Micro Holdings | 585 | 1.39 | – | 2.00 |
| 10 | ASTI Holdings | 575 | 9.83 | – | 0.25 |
| 11 | Avi Tech Electronics | BKY | 11.66 | 4.7 | 1.42 |
| 12 | Ban Leong Technologies | B26 | 9.00 | 5.7 | 0.79 |
| 13 | CDW Holding | BXE | – | 11.3 | 0.44 |
| 14 | CEI Limited | AVV | 18.16 | 1.636 | 1.97 |
| 15 | CFM Holdings | 5EB | – | – | 0.52 |
| 16 | Chuan Hup Holdings | C33 | – | 4.9 | 0.56 |
| 17 | CPH Limited | 539 | – | – | 0.66 |
| 18 | Creative Technology | C76 | – | – | 1.32 |
| 19 | Datapulse Technology | BKW | – | – | 0.58 |
| 20 | Dragon Group International | MT1 | 133.17 | – | 0.09 |
| 21 | Dutech Holdings | CZ4 | 7.98 | 3.9 | 0.45 |
| 22 | Duty Free International | 5SO | 2.01 | 5.814 | 0.78 |
| 23 | Ellipsiz Limited | BIX | – | 1.7 | 0.45 |
| 24 | Excelpoint Technology | BDF | 2.08 | – | 0.36 |
| 25 | Frencken Group | E28 | 14.35 | 3.1 | 1.29 |
| 26 | Global Invacom Group | QS9 | – | – | 0.39 |
| 27 | Global Testing Corporation | AYN | – | – | 0.23 |
| 28 | GP Industries | G20 | 5.20 | 2.4 | 0.67 |
| 29 | Grand Venture Technology | JLB | 9.83 | – | 1.92 |
| 30 | HGH Holdings | 5GZ | – | – | 0.30 |
| 31 | Hu An Cable Holdings | KI3 | – | – | 0.78 |
| 32 | ICP Limited | 5I4 | – | – | 1.0227 |
| 33 | Jadason Enterprises | J03 | – | – | 0.69 |
| 34 | JEP Holdings | 1J4 | 10.85 | – | 1.13 |
| 35 | Karin Technology Holdings | K29 | 1.12 | 4.7 | 0.89 |
| 36 | Ley Choon Group | Q0X | – | – | 0.98 |
| 37 | Libra Group | 5TR | – | – | -0.83 |
| 38 | Manufacturing Integration Technology | M11 | 197.04 | – | 1.10 |
| 39 | Maruwa Yen1k | M12 | – | – | – |
| 40 | MeGroup Limited | SJY | 2.88 | 0.4 | 1.33 |
| 41 | Micro-Mechanics Holdings | 5DD | 25.27 | 4.4 | 5.47 |
| 42 | Plastoform Holdings | AYD | – | – | -0.34 |
| 43 | Polaris Limited | 5BI | 1.43 | – | 3.75 |
| 44 | Powermatic Data Systems | BCY | 14.265 | – | 1.4844 |
| 45 | Renaissance United | I11 | 0.91 | – | 0.16 |
| 46 | Serial System | S69 | 5.77 | 4.73 | 0.36 |
| 47 | SEVAK Limited | BAI | 2.54 | – | 0.39 |
| 48 | Shinvest Holding | BJW | 61.51 | 3 | 0.45 |
| 49 | Sunright Limited | S71 | 2.02 | 0.882 | 0.50 |
| 50 | Sunrise Shares Holdings | 581 | – | – | 1.42 |
| 51 | SUTL Enterprise | BHU | 4.26 | 4.6 | 0.63 |
| 52 | Thakral Corporation | AWI | 6.71 | 9.524 | 0.39 |
| 53 | The Place Holdings | E27 | 0.09 | – | 0.68 |
| 54 | Trek 2000 International | 5AB | – | – | 0.42 |
| 55 | TT International | T09 | – | – | -0.06 |
| 56 | UMS Holdings | 558 | 13.79 | 3.485 | 2.05 |
| 57 | Valuetronics Holdings | BN2 | 14.53 | 6.48 | 1.08 |
| 58 | Venture Corporation | V03 | 14.55 | 3.578 | 2.23 |
| 59 | Willas-Array Electronics Holdings | BDR | – | – | 0.31 |
| 60 | World Precision Machinery | B49 | 1.85 | 5.364 | 0.34 |
An investor has to be selective in investing or trading as many electronics stocks in Singapore are weak (buy low may get lower in share price due to weak business, especially in a bearish stock market), despite they belong to a promising electronics industry but the competition is too intense, only some electronics stocks could be profitable in longer term.
Here, let’s focus on 9 Singapore electronics technology giant stocks over 3 main categories:
1) Electronics Giant Stocks
– Venture Corporation (SGX: V03)
– Valuetronics Holdings (SGX: BN2)
Venture Corporation engages in the design, manufacture, assemble, and distribution of electronics related products. Venture is a highly cyclical stock, not suitable for long term investing (despite very low debt with consistent dividend payment over the past decade, current dividend yield is nearly 4%) as the potential capital loss during bearish market cycle is much more significant.
Venture may be considered for medium term trading, especially after the share prices dropped to half of the peak prices over the past 2 years, currently recovering gradually from Covid-19 stock crisis with acceptable impact on its business.
Venture is the largest market cap (but only a marginal giant stock based on Dr Tee criteria) among 60 Singapore electronics stocks and the only technology stock in 30 STI component stocks:
DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), HongkongLand (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09) , CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).
Unlike US and Hong Kong stock markets which have more heavy weigh technology stocks, Singapore stock market depends more on traditional industries (eg. bank and property stocks) which are cyclical in nature, therefore STI is at lower optimism level.
Valuetronics operates in two segments, Consumer Electronics (CE), and Industrial and Commercial Electronics (ICE). It offers design, engineering, manufacturing, and supply chain support services for electronics products.
Valuetronics is a much stronger electronics stock with nearly no debt, suitable for both growth investing and dividend investing. However, the company share prices are at lower optimism level, mainly due to negative stock market sentiment with potential future business affected by both COVID-19 and US-China trade war.
Crisis investing strategy many be considered for Valuetronics, collecting dividend payments (about 6% dividend yield, preparing for worst case of only 3% dividend yield which is still better than 0.5% interest for cash despot in bank) during bearish market while waiting for rising share prices when market sentiment is reversed from negative to positive with support of better business.
2) Computer / IT Giant Stocks
– Powermatic Data Systems (SGX: BCY)
– Ban Leong Technologies (SGX: B26)
Powermatic Data Systems manufactures, sells, markets, and distributes wireless connectivity products (related to computers). Powermatic Data Systems is a cyclical stock, both in share prices and businesses, following the electronics sector cycle. Over the past few years, businesses have been growing well, supporting the share prices to higher optimism level.
Powermatic Data Systems may be considered for mid-term investing to ride the rising wave of global electronics (including computer) industry. However, the growth is much slower compared with other high-tech stocks, patience is required. The company has low debt but long term optimism level is high, therefore not suitable for long term investing.
Ban Leong Technologies engages in the wholesale and distribution of computer peripherals, accessories, and other multimedia products in Singapore and internationally. It is the smallest market cap (also a penny stock) among the giant electronics stocks but having strong business fundamental with lower debt.
Ban Leong is near to fair price, may be considered for longer term dividend investing (current dividend yield is nearly 6%) when optimism level is lower for share prices, helping to maximize the potential upside, compensating for the slower growth.
Besides Powermatic Data Systems and Ban Leong Technologies, there are other 28 IT Stocks in Singapore, making money with Information Technology (related to electronics industry):
Alpha Energy Holdings (SGX: 5TS), Alset International (SGX: 40V), Artivision Technologies (SGX: 5NK), Asiatravel.com Holdings (SGX: 5AM), A-Smart Holdings (SGX: BQC), Azeus Systems Holdings (SGX: BBW), Boustead Singapore Limited (SGX: F9D), Captii (SGX: AWV), Challenger Technologies (SGX: 573), CSE Global (SGX: 544), DISA (SGX: 532), International Press Softcom (SGX: 571), ISDN Holdings (SGX: I07), Keppel DC Reit (SGX: AJBU), Koyo International (SGX: 5OC), M Development (SGX: N14), Mapletree Industrial Trust (SGX: ME8U), New Silkroutes Group (SGX: BMT), New Wave Holdings (SGX: 5FX), PEC (SGX: IX2), Plato Capital (SGX: YYN), Procurri Corporation (SGX: BVQ), Rich Capital Holdings (SGX: 5G4), Silverlake Axis (SGX: 5CP), SinoCloud Group (SGX: 5EK), Stratech Group (SGX: BRR), Synagie Corp (SGX: V2Y), YuuZoo Networks Group Corp (SGX: AFC).
3) Semiconductor / 5G Giant Stocks
– CEI Limited (SGX: AVV)
– Micro-Mechanics Holdings (SGX: 5DD)
– AEM Holdings (SGX: AWX)
– UMS Holdings (SGX: 558)
– Frencken Group (SGX: E28)
CEI provides contract manufacturing services for the industrial equipment market (eg. printed circuit board, box-build assembly, semiconductor equipment, etc). CEI is also a Temasek stock.
CEI is cyclical stock, prices at high optimism currently, supported by rising electronics and semiconductor industry, partly supported by higher demand of 5G. Despite it is a good dividend stock, the cyclical price behavior at high optimism make it not suitable for investing at the moment. The price trend is also too stable over the past few years to justify for trading. A more suitable action could be “wait” for potential investors when optimism level is much lower in future.
There are other 5G related stocks which may benefit in shorter term trading, eg. Micro-Mechanics, AEM, UMS and Frencken. Trend-following strategy is required for trading of technology stocks as their long term optimism levels are at higher position, potential risk could be higher for longer term investors when semiconductor cycle becomes bearish in future.
Dr Tee has written another article with more details of these 5G stocks: https://www.ein55.com/2020/05/5-singapore-semiconductor-5g-stocks/
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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.
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