OREANDA-NEWS. According to the Global Industry Classification Standard (GICS), the healthcare industry comprises health care equipment & services and pharmaceuticals and biotechnology & life sciences companies. This is the same benchmark used to classified stocks on SGX StockFacts.

Singapore Exchange (SGX) currently lists 25 GICS designated healthcare stocks that include the recently listed UG Healthcare last month. Altogether the listed stocks have a combined market capitalisation of S\$25.6 billion and have generated an average total return of 12.1% in the year of 2014.

Other Healthcare-related players include Riverstone holdings and two Real Estate Investment Trusts (REITs). According to GICS, although Riverstone Holdings is principally involved in the healthcare sector, it is classified under the office services & supplies sub-industry. In addition, Parkway REIT and First REIT invest in properties used primarily for healthcare and/or healthcare-related purposes.

The SGX Healthcare Index is an indicative index, made up of stocks listed on SGX with a focus in the health industry, REITs with investments in healthcare facilities also qualify for inclusion. The Index currently includes 28 securities and the index weightage of the constituents is capped to a maximum of 10% at each semi-annual rebalance so that it better diversified across a range of stocks. The Healthcare Index is computed by SGX and is featured regularly at SGX Sector Connect and the broader broker supported education events. In 2014, the SGX Healthcare Index had generated a total return of 39.1%.

Among the 28 healthcare related stocks, nine are listed on Catalist. The latest addition to the group was UG Healthcare in December 2014, which was preceded by ISEC Healthcare in October 2014, QT Vascular in April 2014 and TalkMed Group in January 2014. These four stocks have a combined market capitalisation of S\$1.1 billion and generated 2014 year-to-date median price change of 1.4%. The median price change of these stocks is derived from respective offer prices; UG Healthcare generated year-to-date price change of 0%. ISEC Healthcare generated year-to-date price change of 2.7%, QT Vascular generated year-to-date price change of 16.4% and TalkMed Group generated year-to-date price change of -3.6%.

Among the 28 stocks, the five largest capitalised healthcare stocks are IHH Healthcare Berhad, Raffles Medical Group, Tianjin Zhongxin Pharmaceutical Group Corporation, Haw Par Corporation and Parkway Life REIT. They have a combined market capitalisation of S\$22.2 billion and generated average 2014 total return of 11.3%.

In the year of 2014, the five best performing healthcare stocks by 2014 total return were Suntar Eco-City, Health Management International, Q&M Dental Group Singapore, Star Pharmaceutical and Religare Health Trust. They have a combined market capitalisation of S\$1.4 billion and generated average 2014 total return of 70.8%.

IHH Healthcare Berhad

IHH Healthcare Berhad provides healthcare services primarily in Asia, Central and Eastern Europe, the Middle East, and North Africa. It provides primary care services, including treatment of basic illnesses, routine check-ups, vaccination, and dental services.

IHH Healthcare has a market capitalization of S\$14,639.6 million and the stock generated a 2014 total return of 23.2%. On 25 November 2014, the company announced their revenue for the third quarter ended 30 September, increased by 6.7% to MYR 1.8 billion from the previous year’s quarter. The stock went ex-dividend on 26 June 2014, distributing MYR 0.02 per share in dividends.

Raffles Medical Group

Raffles Medical Group provides a range of medical services in Singapore. It owns and operates a network of family medicine clinics and a tertiary care private hospital. The company’s flagship hospital is Raffles Hospital, a private tertiary hospital offering various specialist medical and diagnostic services representing approximately 30 disciplines, including obstetrics and gynaecology, cardiology, oncology, orthopedics, and pediatrics for inpatients and outpatients in Singapore with representative offices in Indonesia, Vietnam, Cambodia, Brunei, Bangladesh, and the Russian Far East.

Raffles Medical Group has a market capitalization of S\$2217.1 million and the stock generated a 2014 total return of 26.9%. On 27 October 2014, Raffles Medical Group reported revenue for the third quarter of 2014, an increase of 11.1% to S\$94.5 million from the previous year’s quarter. The stock went ex-dividend on 18 August 2014, distributing S\$0.015 per share in dividends.

Tianjin Zhong Xin Pharmaceutical

Tianjin Zhongxin Pharmaceutical Group Corporation Limited, an investment holding company, produces and sells traditional Chinese medicines, western medicines, and healthcare products primarily in the People's Republic of China.

Tianjin Zhong Xin Pharmaceutical has a market capitalization of S\$2,058.6 million and the stock generated a 2014 total return of -8.0%. On 30 October 2014, the company reported revenue for the third quarter period ended 30 September 2014, increased by 25.4% to RMB 1.8 billion from the previous year’s quarter. The stock went ex-dividend on 4 July 2014, distributing CNY 0.05 per share in dividends.

Haw Par Corporation

Haw Par Corporation Limited, together with its subsidiaries, manufactures, markets, and trades healthcare products; provides leisure-related goods and services; and invests in properties and securities. The company distributes its products in America, Europe, the Middle East, Africa, Asia, and Australasia.

Haw Par Corporation has a market capitalization of S\$1856.8 million and the stock generated a 2014 total return of 7.8%. On 13 November 2014, the company reported their third quarter revenue for the period ended 30 September, increased by 3.9% from the previous year’s quarter. The stock went ex-dividend on 21 August 2014, distributing S\$0.06 per share in dividends.

Parkway Life Real Estate Investment Trust

Parkway Life Real Estate Investment Trust is one of the largest listed healthcare REITs in Asia by asset size. It was established to invest primarily in income-producing real estate and/or real estate-related assets in the Asia-Pacific region(including Singapore) that are used primarily for healthcare and/or healthcare-related purposes, whether wholly or partially owned, and whether directly or indirectly.

Parkway Life Real Estate Investment Trust has a market capitalization of S\$1403.6 million and the stock generated a 2014 total return of 6.3%. On 30 October,  the company reported revenue for the nine months ended 30 September, increased by 9.2% or S\$6.3 million from the previous year’s quarter. The stock went ex-dividend on 5 November 2014, distributing S\$0.0038 per share in dividends.