Top Singapore Small Cap Companies - RHB Invest 2021-05-05: 20 Jewels 2021 Edition

Top Singapore Small Cap Companies - RHB Research | SGinvestors.io

MC PAYMENT LIMITED (SGX:TVV) STRACO CORPORATION LIMITED (SGX:S85) SBS TRANSIT LTD (SGX:S61) RIVERSTONE HOLDINGS LIMITED (SGX:AP4) MULTI-CHEM LIMITED (SGX:AWZ) MARCO POLO MARINE LTD. (SGX:5LY) KEPPEL PACIFIC OAK US REIT (SGX:CMOU) ISDN HOLDINGS LIMITED (SGX:I07) HRNETGROUP LIMITED (SGX:CHZ) GOLDEN AGRI-RESOURCES LTD (SGX:E5H) FU YU CORPORATION LTD (SGX:F13) FRENCKEN GROUP LIMITED (SGX:E28) FOOD EMPIRE HOLDINGS LIMITED (SGX:F03) ELITE COMMERCIAL REIT (SGX:MXNU) CHINA AVIATION OIL(S) CORP LTD (SGX:G92) BRC ASIA LIMITED (SGX:BEC) BANYAN TREE HOLDINGS LIMITED (SGX:B58) ARA LOGOS LOGISTICS TRUST (SGX:K2LU) APAC REALTY LIMITED (SGX:CLN) AIMS APAC REIT (SGX:O5RU)

Top Singapore Small Cap Companies - 20 Jewels 2021 Edition

While COVID-19 caused a steep correction in global markets in 2020, it also presented many opportunities to unfold in the small-mid-cap space. Global markets have now rebounded strongly with positive news on vaccines and vaccination programmes around the world. As of now, we are still on course towards a recovery and getting populations vaccinated, especially in Singapore.
With global indices at a high and valuations are rich for most of the listed equities, we remain positive on some small-mid-cap companies that are neglected by the mass market. They are mostly correlated to the global recovery in consumer spending and tourism, as we believe these sectors will continue to pick up once more people get vaccinated and worldwide travel resumes.
We also remain bullish on the tech space despite it performing well this year, particularly in the semi-conductor space, as we believe it will continue to perform even better in 2021.

20 Jewels 2021 Edition

Over 60% of our stock picks in this book are new companies not seen in the previous 20 Jewels - Top Singapore Small Cap Companies 2020 Edition.
This year, technology and consumer names make up a sizable portion of our Top 20 picks. We have also identified some REITs whose yields reflect attractive risk rewards at these levels, as valuations of listed equities have shot up while undervalued opportunities remain in the REIT space.
While property valuations and assets have also been lowered due to lower income in 2020, we remain bullish on a rebound in 2021 and have 25% of our picks in the property/REIT segment.
While other companies featured in this edition may vary in terms of business, market capitalisation, and investor interest, they share a common DNA – they are fundamentally sound companies with a great probability of making good returns for investors. We hope to eventually see these companies graduate into mid-sized corporates or even large caps in the not too distant future.
RHB Research wishes to express our gratitude to the management teams of the featured firms for being generous with their time in helping us understand their companies’ business models, as well as allowing us to share our views and opinions. Credit is also due to our dedicated team of analysts, who have invested countless hours to produce this year’s edition.