Growth stock anticipated growing at a rate significantly above the average for the market. These stocks generally do not pay high dividends but investors earn money through capital gains when they eventually sell their shares. As concern to the higher growth in future growth stock in companies that are trading higher than their inherent value – with the assumption that the inherent value will grow and ultimately exceed current valuations.
Growth investors consistently looking for investments in rapidly expanding industries where new technologies and services are being developed and looking for profits through capital gains and not dividends as the concern that Multi Management Future Solutions thinks that there is still a small set of stocks in Singapore market that are worth buying and holding – growth stocks.
Here is the list of 5 growth Stock to buy and hold in 2018
Health Management International
Health Management International Limited is a regional private healthcare provider in South East Asia. The Company owns and operates tertiary care hospitals supported by a patient referral network, as well as a healthcare training institute. Its unique independent operating model holds the top market share for medical tourist among its peers. Its growth becomes double when capacity at its Johor hospital is complete.
Recommendation for Health Management International
Long-term Investment Returns:
Shareholder Returns in 2 years +41.16%
Shareholder Returns in 3 years +150.63%
Shareholder Returns in 5 years +407.63%
BUY, TP $0.80; Current share price $0.565
Sheng Siong Group
Sheng Siong Supermarket Pvt Ltd, commonly known as Sheng Siong is the third largest chain of supermarkets in Singapore. Sheng Siong Group Ltd. is publicly listed at the SGX (code: OV8) since August 17, 2011. The company maximizes profit margins by constantly challenging itself to churn out higher turnover per square feet of retail space. On the top of positive Marco trend of improving consumer spending, It is also expected Sheng Siong to continue winning market share from convenience stores and traditional market grocers. Furthermore, with two more new store wins recently announced, total store count would be bumped to 52.
Recommendation for Sheng Siong Group
Sheng Siong Group Long-term Returns:
Shareholder Returns in 2 years +11.68 %
Shareholder Returns in 3 years +52.92 %
Shareholder Returns in 5 years +95.91 %
BUY, TP $1.20; Current share price $1.10
Singapore Post Limited (SGX: S08), commonly abbreviated as SingPost, is an associate company of Singapore Telecommunications Limited. Singapore post provides domestic and international postal services in Logistic. It has made several acquisitions to strengthen and grow its business. It is one of the best-placed logistics companies in ASEAN that is poised to benefit from the rapid growth in e-commerce. Its growth continued in international mail volume through its partnership with Alibaba is an affirmation of rapid growth in e-commerce.
Recommendation for Singapore Post Limited
Singapore Post Long-term Returns
Shareholder Returns in 2 years -14.39 %
Shareholder Returns in 3 years -27.59 %
Shareholder Returns in 5 years +11.16 %
BUY, TP $1.50; Current share price $1.13
ST Engineering (Singapore Technology Limited)
ST Engineering is an integrated engineering group providing solutions and services in the aerospace, electronics, land systems and marine sectors. The Group reported revenue of $6.34b in FY2015, ranks among the largest companies listed on the Singapore Exchange. With three years of lackluster growth from tough conditions and restructuring costs, The aviation services landscape has also improved markedly to give ST Engineering’s MRO segment a boost. ST Engineering’s recent acquisitions hold strong growth potential in the future.
Recommendation for ST Engineering
ST Engineering Long-term Returns
Shareholder Returns in 2 years +8.79 %
Shareholder Returns in 3 years +37.05 %
Shareholder Returns in 5 years +10.72 %
BUY, TP $4.15; Current share price $3.26
Venture Corporation Limited SGX: V03 is a high-tech design and manufacturing firm based in Singapore. The venture is a listed component of the Straits Times Index and is on the apex of a year of growth as it continues to ride on its multifaceted growth drivers. The venture has been successful in achieving deeper penetration into existing customers while winning new customers. It provides a better jumble of products for its new and existing clients with greater R&D and design content which is expected to drive margin expansion for Venture.
Recommendation for Venture Corporation Limited
Venture Corporation Limited Long-term Returns
Shareholder Returns in 2 years +108.09 %
Shareholder Returns in 3 years +154.37 %
Shareholder Returns in 5 years +170.00 %
BUY, TP $25.77; Current share price $18.19