Strategy

Strategy: Del Monte, UG Healthcare, Best World joins Edge's high growth portfolio
The Edge Markets added three stocks, Del Monte, UG Healthcare and Best World, into its high growth portfolio, amid the rout in the equity markets.

The portfolio focuses on companies that operate in fast-growing industries, or companies in traditional sectors that have a unique competitive advantage relative to their peers.

For Del Monte, the financial magazine sees a turnaround for the F&B processor-cum-distributor, following two consecutive years of losses due to acquisition and transition-related expenses of its US-based unit. In addition, Del Monte is set to benefit from an improving US economy, which could bolster demand for its products.

It likes rubber glove maker UG Healthcare for reaping the rewards of its expansion initiatives amid macroeconomic tailwinds, underpinned by heightened global awareness following the recent spate of disease outbreak.

Best World is enjoying strong revenue and earnings growth in its health and lifestyle products in recent quarters. With the company seeking final approval for its direct selling licence in China, the multi-channel distributor is poised for explosive growth in the coming future given the immense size of the Chinese market.

The inclusion of the three stocks joins two other counters, SATS and Raffles Medical Group, in its high-growth portfolio, which was started in Nov '15. The overall portfolio has declined 1.1% since inception but has outperformed STI's 10% drop.