OREANDA-NEWS. Utilities companies are commonly involved in building the infrastructures related to utilities or providing utilities services in the areas including sewage, gas, electric and water. The demand for utilities services typically grows in tandem with population growth. However, ballooning population growth and more recent fiscal constraints have resulted that more of the worlds’ utilities services have to come from and supported by the private sector.

There are eight stocks listed on the Singapore Exchange (SGX) that derived more than half of their revenue from the utilities segment according to their latest financial year reports. According to Global Industry Classification Standard (GICS), these eight stocks come from a range of industries – Electric Utilities, Electronic Components, Gas Utilities, Industrial Conglomerates, Industrial Machinery, Trading Companies & Distributors and Water Utilities. They have a combined market capitalisation of S\$8.8 billion. They have a mixed performance year-to-date with two gainers and six decliners. The table below details these eight stocks.

One of these eight stocks, HanKore Environment Tech Group, in its latest announcement reported the completion of the proposed acquisition of the entire issued and paid-up share capital of China Everbright Water Limited.  Since China Everbright International Limited (“CEIL”) will be taking an approximate 78% stake in HanKore, it will be majority owned by one of the largest State-owned Enterprises (SOEs) in China (China Everbright Group, the parent of CEIL). Hence HanKore Environment Tech Group is now affiliated with the SOE segment covered in a recent Market Update.

Name SGX Code Market Cap S\$ M Px Chg Pct YTD % Total Return YTD % Utilities Revenue Percent:Y P/G Rev Name GICS SubInd Name
AUSNET SERVICES X04 4845.0 1.1 7.4 91.7 Electricity Distribution Electric Utilities
SIIC ENVIRONMENT HOLDINGS 5GB 1371.3 -22.4 -22.4 56.1 Water Treatment and Water Supply Water Utilities
GALLANT VENTURE 5IG 1133.9 -14.8 -14.8 54.2 Utilities Industrial Conglomerates
CITYSPRING INFRASTRUCTURE TR A7RU 805.0 13.8 21.7 100.0 Gas Gas Utilities
HANKORE ENVIRONMENT TECH GRP U9E 563.4 -5.6 -5.6 89.1 BOT/TOT Discharge Fees Water Utilities
IPCO INTERNATIONAL I11 30.6 -68.4 -68.4 53.8 Gas Distribution Electronic Components
ASIATIC GROUP HOLDINGS 5CR 28.7 -46.7 -46.0 77.1 Controlled Power Related Trading Companies & Distributors
DARCO WATER TECHNOLOGIES 5CB 6.9 -56.9 -56.9 100.0 EW systems Industrial Machinery

AusNet Services

AusNet Services has businesses in electricity distribution and transmission, and gas distribution businesses in Australia. The company  has operations in four segments – electricity distribution, gas distribution, electricity transmission and select solutions. AusNet Services has a market capitalisation of S\$4,845.0 million and its 2014 year-to-date total return stood at 7.4%. On 12 November 2014, AusNet Services reported revenue from ordinary activities of AU\$971.3 million and net loss for the half year attributable to stapled securityholders of AU\$4.9 million for the half year ended 30 September 2014. The stock went ex-dividend on 21 November 2014, distributing AU\$0.0418 per share in dividends.

SIIC Environment Holdings

SIIC Environment Holdings is an investment holding company that is engaged in waste water treatment and water supply business in the People’s Republic of China and Singapore. The company’s operations can be classified in three segments - Construction, Water Treatment and Water Supply, and Others. SIIC Environment Holdings has a market capitalisation of S\$1,371.3 million and generated 2014 year-to-date total return of -22.4%. On 12 November 2014, SIIC Environment Holdings reported net profit attributable to shareholders of RMB196.5 million for the nine months ended on 30 September 2014, an increase of 65.4% from RMB118.8 million.

Gallant Venture

Gallant Venture operates as a commercial development and management company in Batam Island and Batam Island, Indonesia. The company has operations in various segments – utilities, industrial parks, resort operations, property development, and automotive segments. Gallant Venture has a market capitalisation of S\$1,133.9 million and its 2014 year-to-date total return maintained at -14.8%. On 3 November 2014, Gallant Venture reported a revenue of S\$591.0 million and loss after tax for the period of S\$11.1 million for the third quarter ended 30 September 2014.

CitySpring Infrastructure Trust

CitySpring Infrastructure Trust is an infrastructure business trust and the firm makes its investments through acquisitions across the globe. Its primary investments in the infrastructure sector include utilities, facilities for treatment of water, logistics and communications. CitySpring Infrastructure Trust has a market capitalisation of S\$805.0 million and generated a 2014 year-to-date total return of 21.7%. On 3 November 2014, CitySpring Infrastructure Trust reported revenue of S\$127.1 million and net loss after tax of S\$813,000 for its second quarter ended 30 September 2014. The trust went ex-dividend on 7 November 2014, distributing S\$0.0082 per share in dividends.

HanKore Environment Tech Group

HanKore Environment Tech Group invests and operates in the water and environment sector primarily in the People’s Republic of China. The company is involved in a diverse segments of businesses including municipal water and wastewater treatments plants for the provision of wastewater treatment services and research and development of environmental protection products. HanKore Environment Tech Group has a market capitalisation of S\$563.4 million and its 2014 year-to-date return stood at -5.6%. On 11 November 2014, HanKore Environment Tech Group reported revenue of RMB130.3 million and net profit attributable to shareholders of RMB12.9 million for the three months ended 30 September 2014.