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Kevin Gin: 3 Developments & Attractive Sectors You Should Know
Aspire, Thought Leaders | 02 November 2015
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By: Vance Wong
Articles (74) Profile

Founder and Principal of Alpha Capital, Kevin Gin spoke about many developments around the world at our Shares Investment Conference 2H2015 (SIC2H2015). Kevin has been to many Chinese companies in China personally and his experience and advice are invaluable.

Among the many developments that he mentioned, we believe that the following three developments would be interesting for all of us to know.

1. Ageing Population

One of the most important points that Kevin covered in his speech is the rapidly ageing population. While on one hand, it means that the childhood mortality rate is decreasing, on the other it also means that the workforce will also shrink relatively.

According to the World Health Organisation (WHO), the percentage of the world’s population over 60 years of age will nearly double from 12 percent to 22 percent. Essentially, this means that medical science will increasingly be of importance for governments.

Source: Reuters

As such, Kevin thinks that there is potential in the medicine and pharmaceutical sector. From Kevin’s graph above, as much as Cordlife Singapore (CORD.SI) had performed decently well for the past few years, South Korean Hanmi Pharmaceutical (128940.KS) and India-based Sun Pharmaceutical (SUN.NS) were the major outperformers.

2. e-Commerce Platforms

Despite the talks about a tech bubble forming in the global economy, it is hard to ignore the fact that many of us are actually purchasing all sorts of goods online. Apple Inc’s outperformance has always been blasted all over the news, but how about Tencent Holdings?

Source: Reuters

From Kevin’s graph, we can see that Apple Inc. (AAPL.O) has indeed outperformed the Standard & Poor 500 (S&P500). However, Tencent Holdings (0700.HK) had clearly outperformed Apple, and surprisingly, Apple is behind Amazon Inc. (AMZN.O) too.

The e-Commerce space is an area that Kevin thinks the world will be moving towards to in the not-too-distant future, where technology will become even more prevalent.

3. Pollution & Waste Management

Another area that Kevin sees potential in is the pollution and waste management sector. Kevin said that Singaporeans are complaining about Pollutant Standards Index (PSI) levels hitting 200 to 300, but in China, PSI levels can reach up to over 1,000.

Source: Reuters

Fortunately, the Chinese government has been pumping money into pollution and waste management, an area that has been booming since a few years ago. We can also see from the graph above that all but Hyflux (HYFL.SI) outperformed.

CITIC Envirotech (CITI.SI) is under CITIC group, a Chinese conglomerate under the People’s Bank of China (PBOC) while SIIC Environment Holdings (SIIC.SI) is an investment holding company and an operator of environmental related assets.

Investors’ Takeaway

In a nutshell, Kevin emphasises that regardless whether sector is booming or not, local investors should stop their “home bias” when it comes to buying good stocks. Although it is true that we would have a peace of mind investing in companies based at home, we should look at other countries for better opportunities.

Kevin was nice enough to share the slides that he presented on the day. Click here to download them.

With a Communications background, Vance has the passion to write with a purpose - to provide content supported with substantial evidence to vested readers.

Please click here for more information about this author.

Cordlife Group  0.415 -0.005 -1.19%   
Business: Co is in the business of cord lining banking and holds the largest market share of private cord blood banks in Singapore, Indonesia and the Philippines.

Insight: Feb-19, 18M18 revenue increased 13% to $12.1.m mai... Read More
SIIC Envt Hldgs  0.235 -0.010 -4.08%   
Business: Co is an integrated player in the China's environmental investment industry. [FY17 Turnover] Water treatment & supply (92.5%), construction and others (4.3%), waste incineration (3.2%).

Insight: May-18, 1Q18 revenue increased 17.8% to Rmb1.2b ma... Read More
Hyflux  -- -- --   
Business: Provides integrated water management & environmental solutions. [FY17 Turnover] Municipal (82.5%), industrial (16%), others (1.5%).

Insight: Mar-19, 9M18 revenue sank 75% due to lower enginee... Read More

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