When it comes to investing in technology stocks, the SGX might not be the first exchange that comes to mind when screening for exciting or suitable companies.
While it may be true that the Facebooks and Alphabets, or even the Alibabas and Tencents, may be listed in the united states, Hong Kong and China, SGX still offers a compelling tech play – to invest in the companies that manufacture the hardware and semiconductors that the “tech giants” will use.
On SGX's StockFacts platform, we discovered that there were 70 companies listed under the Software and IT Services (17), Technology Equipment (46) and Telecommunications Services (7) sectors. 15 of those companies have a market capitalisation well over $100 million, and of these, the five best performers delivered a typical total return of 77.7% within the year-to-date-2021.
We would have featured all five of these companies, but given the column's angle, we focus on the four best performing tech stocks on SGX in 2021, so far.
AEM Holdings Ltd (SGX: AWX)
With a market capitalisation of $461 million, AEM provides handling and test methods to the most advance manufacturers on the planet. Its customers mainly produce microprocessors, high-speed communications, IOT devices and solar cells.
In the year-to-date 2021, AEM has achieved an overall total return of 126.6%. Its stellar performance isn't just limited to this year either. Its 3-year total return is 1499.4% and 5-year total return comes in at 2038.9%.
In its most recent 3Q2021 results announcement on 6 November 2021, it provided assistance with its revenue figures, so it expects to be $305 million to $315 million. This will be at least 16.3% higher than its 2021 revenue of $262.3 million.
At the same time, its profit before tax for the first nine months was $43.5 million, already greater than its profit before tax for the entire 2021 of $40.0 million.
Hi-P International Limited (SGX: H17)
Fast-growing integrated contract manufacturers, Hi-P has a market capitalisation of $1.2 billion. The group's customers hail from diverse industries including wireless telecommunications, electronic devices, computing, IOT, medical devices and industrial devices. Hi-P manufacturing footprint spans across five locations in China.
So far, in 2021, Hi-P has delivered an overall total return of 81.3%. It's similarly performed well over yesteryear 3-year and 5-year period, achieving a total return of 277.1% and 182.4% in the respective periods.
In its 3Q2021 results, announced on 30 October 2021, it delivered 1.1% rise in revenue and 3.1% increase in profit after tax.
Procurri Corporation Limited (SGX: BVQ)
Procurri was listed because of a spin-off of a business unit of some other listed company – DeClout Limited – in 2021. Interestingly, DeClout was privatised earlier in 2021.
With an industry capitalisation of $122 million, Procurri mainly are operating in the business of providing 1) lifecycle services for IT hardware and equipment and a pair of) data centre equipment such as servers, storage and networking equipment.
In the year-to-date 2021, it's achieved a total return of 68.5%. It's 3-year total return comes in at 8.6% and its 5-year total return is 0%.
In its newest 3Q2021 announcement, on 4 November 2021, it delivered a slight 2.1% decrease in revenue and a 13.6% increase in net profit.
UMS Holdings Limited (SGX: 558)
UMS is a precision engineering group specialising in high-precision front-end semiconductor components, electromechanical assembly and final testing services. Its customers are mainly from the semiconductor, electronic, machine tools, aerospace and oil and gas industries.
In the year-to-date 2021, UMS, which has a market capitalisation of $477 million, has delivered an overall total return of 66.0%. Its 3-year and 5-year total return are 121.2% and 204.5% respectively.
Similar to another companies on the list, it has also done well in the latest 3Q2021 results announcement, clocking in an 18.1% increase in net profit and 12% rise in revenue for its 3rd quarter.