OREANDA-NEWS. The FTSE Straits Times China Index consists of 29 stocks with a market capitalisation of over S\\$94 billion, which derive more than half their revenues from China.

Five of the best performers in the Index – SIIC Environment Holdings (+52.2%), Tianjin ZhongXin Pharmaceutical Group Corporation (+46.8%), Midas Holdings (+52.0%), China New Town Development Company (+30.2%) and Biosensors International Group (+39.3%) – have averaged total returns of 44.1% YTD.

The slew of weaker-than expected economic data from China has buoyed hopes the government will step up stimulus efforts to bolster growth. The country’s gross domestic product rose 7% in 1Q from a year earlier, while March industrial production rose 5.6% on-year, the lowest since Nov. 2008. Exports last month also unexpectedly shrank 15% from the year-ago period.

The government has already rolled out measures to support the domestic property market, cut interest rates twice and reduced banks’ required reserve ratios, but more may be needed to meet its official growth target of “around 7%” this year.

The Shanghai Composite Index tumbled as much as 1.6% on 15 April after the data was released, before closing 1.24% lower at 4,084.163. The index has doubled its gains over the past 12 months and risen about 26% since the start of the year.

The table below details the relevant five stocks ranked according to year-to-date dividend-adjusted returns.

Company Name SGX Code Mkt Cap S\\$M % Price Change YTD % Change - Div. Adj. YTD % Change - Div. Adj. [1 Year]

%

Div. Yield

 % Revenue Contribution from China P/E Ratio
SIIC Environment Holdings 5GB 1,918 52.2 52.2 40.8 - 100.0 32.7
Midas Holdings 5EN 444 52.0 52.0 -21.3 1.4 86.3 36.9
Tianjin Zhongxin Pharmaceutical Group Corporation T14 3,514 46.8 46.8 60.7 0.7 99.4 19.0
Biosensors International Group B20 1,303 39.3 39.3 -14.8 0.0 28.1 35.5
China New Town Development Company D4N 699 30.2 30.2 -27.6 - 100.0 32.2
Average                     44.1 44.1 7.6 0.7    

Source: S&P Capital IQ, SGX (Data as of 15 April 2015)

The FTSE Straits Times China Index has generated 9.4% total returns in the year thus far, nearly double that of the FTSE All-Share Index and FTSE Straits Times Index in the same period.

Index % Total Returns YTD
FTSE Straits Times China Index 9.37
FTSE ST All-Share Index 5.32
FTSE Straits Times Index 5.19

Source: S&P Capital IQ

The FTSE ST China Index is based on the underlying constituents of the FTSE ST All-Share Index, which have at least 50% of their sales derived from or operating assets located in mainland China. The indices are reviewed in line with the FTSE ST Index Series in March and September, and at each review are screened for size, free-float and liquidity as part of the FTSE ST All-Share Index, to ensure that the index constituents have sufficient size and liquidity.

SIIC Environment Holdings

SIIC Environment Holdings, an investment holding company, engages in waste water treatment and water supply business in the People’s Republic of China and Singapore. It operates through three segments; Construction, Water Treatment and Water Supply, and Waste Incineration. The company was formerly known as Asia Water Technology Ltd. and changed its name to SIIC Environment Holdings Ltd. in November 2012. The company was incorporated in 2002 and is based in Singapore. SIIC Environment Holdings Ltd. is a subsidiary of S.I. Infrastructure Holdings Limited.

SIIC Environment Holdings has a market capitalisation of 2.0 billion and the stock trades at a price-to-earnings ratio of 32.7. In a recent financial statement release, it was reported that the company achieved a revenue of RMB1.3 billion for the financial year ended 31 December, a 6.0% increase from the corresponding period last year. This is due to the increase of water treatment and water supply business segment, resulting from higher treatment and sales volume and newly acquired subsidiaries and the contribution of RMB37.4 million from the waste incineration business segment.

Tianjin Zhongxin Pharmaceutical Group Corporation

Tianjin Zhongxin Pharmaceutical Group Corporation, an investment holding company, produces and sells traditional Chinese medicines, western medicines, and healthcare products primarily in the People's Republic of China. It offers Chinese patent medicines, Chinese medicinal materials, pharmaceutical raw materials and western medicines, bioengineering drugs, nutritious and health products, etc. Tianjin Zhongxin Pharmaceutical Group Corporation Limited was founded in 1992 and is based in Tianjin, China.

Tianjin Zhongxin Pharmaceutical Group Corporation has a market capitalisation of  3.5 billion and the stock trades at a price-to-earnings ratio of 19.0. On 30 March 2015, the company reported their revenue for the full year ended 31 December 2014, increased by 18% to RMB 7.1 billion year-on-year. The increase was due to strengthening the control of the marketing process, and creating innovative marketing models to boost sales through brand influence. 

Midas Holdings

Midas Holdings, an investment holding company, manufactures and sells aluminum alloy extrusion products for the rail transportation sector primarily in the People’s Republic of China. It operates through three divisions: Aluminum Alloy Extruded Products, Polyethylene Pipe, and Aluminum Alloy Plates and Sheets. Midas Holdings Limited also exports its products. The company was founded in 2000 and is based in Singapore.

Midas Holdings has a market capitalisation of 444 million and the stock trades at a price-to-earnings ratio of 36.9. On 3 March 2015, the company announced that its subsidiary, Jilin Midas Aluminium Industries Co., Ltd has won a US\\$58.3 million (approximately RMB365.9 million) contract to supply aluminium alloy extrusion profiles and fabricated parts for a rail project in the United States. This contract is Midas’ single largest export contract to-date as well as the Group’s maiden rail contract in the United States.         

China New Town Development Company
China New Town Development Company, together with its subsidiaries, plans and develops large-scale new town projects in the suburbs of large cities in the People’s Republic of China. The company operates through Land Development, Property Development, Property Leasing, Hotel Operations, Golf Operations, and Others segments. The company is involved in the planting, maintenance, and management of scenic spots. The company was founded in 2002 and is based in Central, Hong Kong.

China New Town Development Company has a market capitalisation of 699 million and the stock trades at a price-to-earnings ratio of 32.2. On 11 March 2015, the company announced that My. Wu Jubo has been appointed as their new Chief Financial Officer of the Company. In his role as the CFO, Mr. Wu would be responsible for matters relating to corporate finance, corporate development and assists in strategic planning, as well as other financial management duties.

Biosensors International Group     

Biosensors International Group, an investment holding company, develops, manufactures, and markets various medical devices for interventional cardiology and critical care procedures in China, Japan, and internationally. The company operates in four segments: Interventional Cardiology, Critical Care, Cardiac Diagnostic, and Licensing Revenue. The company was founded in 1990 and is headquartered in Singapore.

Biosensors International Group has a market capitalisation of  1.3 billion and the stock trades at a price-to-earnings ratio of 35.5. On 11 March 2015, JW Medical Systems, a fully-owned subsidiary of Biosensors International Group has announced completion of patient enrollment in CREDIT II, the first randomized controlled trial involving the EXCEL II coronary stent. EXCEL II is the latest generation in the EXCEL family of biodegradable polymer drug-eluting stents, the leading BP-DES brand in China.