OREANDA-NEWS. There are more than 1000 primary-listed businesses in the world categorised to the GICS ® Transportation sector, and four of the largest capitalised are listed in Asia – Central Japan Railway Company, East Japan Railway Company, Shanghai International Port Group Company, and Daqin Railway Company. Services that involve cars, trucks, planes, boats and trains are a part of the sector, and many of these businesses are energy-dependent in one form or another. 

Fuel Costs

The price of WTI crude oil has more than halved from US\$98.06 on July 1, 2014 to a low of US\$47.06 on March 17, 2015. In the year thus far, WTI crude has gained 10% since the start of the year to \$60.75 as of yesterday’s close. At the same time, the Bloomberg Singapore Jet Kerosene spot price has risen over 12% to US\$78.25 since the start of 2015. As Singapore Airlines noted in late February, jet fuel continues to account for a significant percentage of SIA Group expenditure. For FY2013/14, fuel costs comprised the largest component (approximately 38%) of Group operating expenditure.

The Singapore Transport Sector

There are 30 stocks listed on Singapore Exchange (SGX) that represent the GICS ® Transportation Sector. This sector can be broken down into five segments – Air Freight & Logistics, Airlines, Marine, Road & Rail, and Transportation Infrastructure. Transportation Infrastructure is the largest industry that makes up one-third of the total market capitalisation of the GICS ® Transportation Sector.  

As of Tuesday’s close, the average price return of the 10 largest capitalised stocks of Singapore’s transportation sector at 8.9% was boosted to 10.2% with dividends. They maintain an average dividend yield of 3.9%, with yields ranging from 1.4% for Singapore Airlines to 8.1% for Hutchison Port Holdings Trust. In terms of year-to-date price performance, nine of the 10 largest transportation stocks generated price gains. Amongst the 10 stocks, Neptune Orient Lines generated the highest price gain of 31.0%, while Hutchison Port Holdings Trust had a 1.5% decline.

Details of the 10 biggest stocks of the GICS ® Transportation Sector are below. The table is ranked according to market capitalisation.

Source: SGX StockFacts (Data as of 12 May 2015)

Singapore Airlines

Singapore Airlines provides passenger and cargo air transportation services in East Asia, Europe, South West Pacific, the Americas, West Asia, and Africa. The company also offers engineering services, air charters, and tour wholesaling and related services, as well as is engaged in the training of pilots. The company was founded in 1947 and is based in Singapore. Singapore Airlines is a subsidiary of Temasek Holdings (Private) Limited. Singapore Airlines is the largest stock in the Transportation sector. It has a market capitlalisation of S\$13.6 billion and the stock trades at a price-earnings ratio of 38.8.

Hutchison Port Holdings Trust

Hutchison Port Holdings Trust invests in, develops, operates, and manages deep-water container ports in Guangdong Province of the People’s Republic of China, as well as in Hong Kong and Macau. The company was incorporated in 2011 and is based in Singapore. Hutchison Port Holdings Trust has a market capitalisation of S\$7.9 billion and the stock trades at a price-to-book value of 1.0.

ComfortDelGro Corporation

ComfortDelGro Corporation operates as a passenger land transportation company. As of February 11, 2015, the company operated a fleet of approximately 46,300 buses, taxis, and rental vehicles in Singapore, the United Kingdom, Ireland, Australia, China, Vietnam, and Malaysia. ComfortDelGro Corporation was founded in 2003 and is headquartered in Singapore. ComfortDelGro Corporation has a market capitalisation of S\$6.5 billion and the stock trades at a price-earnings ratio of 23.1.

SIA Engineering Company

SIA Engineering Company operates as an aircraft maintenance, repair, and overhaul (MRO) company in the Asia-Pacific. The company operates through two segments, Repair and Overhaul, and Line Maintenance. The company was founded in 1992 and is based in Singapore. SIA Engineering Company is a subsidiary of Singapore Airlines Limited. SIA Engineering Company has a market capitalisation of S\$4.8 billion and the stock trades at a price-earnings ratio of 23.1.

Singapore Post

Singapore Post operates and provides postal and logistics services in Singapore and internationally. The company operates in three segments: Mail, Logistics, and Retail. Singapore Post was founded in 1819 and is based in Singapore. Singapore Post has a market capitalisation of S\$4.1 billion and the stock trades at a price-earnings ratio of 28.9.

SATS

SATS provides food solutions and gateway services in Singapore, Japan, and internationally. The company operates in three segments: Food Solutions, Gateway Services, and Corporate. The company was formerly known as Singapore Airport Terminal Services and changed its name to SATS Ltd. in 2010 to better reflect its business. SATS Ltd. was founded in 1972 and is based in Singapore. SATS has a market capitalisation of S\$3.6 billion and the stock trades at a price-earnings ratio of 19.3.

Neptune Orient Lines

Neptune Orient Lines owns and charters vessels and other related assets worldwide. It operates in two segments, Liner and Logistics. The company was founded in 1968 and is based in Singapore. Neptune Orient Lines is a subsidiary of Temasek Holdings (Private) Limited. Neptune Orient Lines has a market capitalisation of S\$2.8 billion and the stock trades at a price-to-book value of 1.2.

SMRT Corporation

SMRT Corporation provides multi-modal public transport services primarily in Singapore. It operates through Rail Operations, Bus Operations, Taxi Operations, Rental, Advertising, Engineering Services, and Other Services segments. The company was founded in 1987 and is based in Singapore. SMRT Corporation is a subsidiary of Temasek Holdings (Private) Limited. SMRT Corporation has a market capitalisation of S\$2.5 billion and the stock trades at a price-earnings ratio of 27.2.

CWT

CWT provides integrated logistics and supply chain solutions for small establishments and multinational corporations in Singapore and internationally. The company operates through four segments: Logistics Services, Commodity Supply Chain Management, Engineering Services, and Financial Services. CWT was founded in 1970 and is headquartered in Singapore. CWT has a market capitalisation of S\$1.1 million and the stock trades at a price-earnings ratio of 10.2.

China Merchants Holdings (Pacific)

China Merchants Holdings (Pacific) invests in, manages, and operates toll roads in the People’s Republic of China. The company operates through two segments, Toll Road Operations and Property Development. The company was incorporated in 1981 and is based in Singapore. China Merchants Holdings (Pacific) is a subsidiary of Easton Overseas Limited. China Merchants Holdings (Pacific) has a market capitalisation of S\$1.1 billion and the stock trades at a price-earnings ratio of 9.8.