From latest analyst reports....
* DBS Bank: DBS has been added to Morgan Stanley’s Asia Pacific Best Ideas List.
The broker said it held to its stance that the stock’s superior forecast EPS growth is undervalued.
"In our view, DBS’ defensive positioning in an increasingly inflationary environment makes this undervaluation even more attractive, which should allow the stock to realize our S$17 target price. We see 21% upside from current levels, the highest upside in our Singapore bank coverage.”
At the recent price of $14.04, DBS traded at 12.2X Morgan Stanley’s expected earnings for this year.
* HPH Trust: Credit Suisse highlighted that new listing HPH Trust has a projected dividend yield of 6.2%.
HPH Trust would rank among the highest dividend stocks within the MSCI Singapore, behind just StarHub, AREIT and SPH, noted Credit Suisse.
MSCI Barra announced on Friday night (18 March) that HPH Trust would be added to the MSCI global standard indices effective 1 April 2011.
Based on the HPH Trust’s debut closing price of US$0.95 on Friday, HPH Trust has a market cap of S$11 bn and is the 18th largest stock in Singapore.
* Sino Grandness: DBS Vickers said Sino Grandness’ fair value is S$0.60 based on 6x FY11F PE.
Recently, at 48 cents, SFGI was trading at c.5.0x PE.
“We believe a 6.0x PE valuation on the stock is reasonable based on peer group comparison. We estimate fair value of S$0.60.”
DBS Vickers believed that its strong beverage business could lead to a re-rating of the stock.
“We believe re-rating for the stock hinges on its ability to penetrate the China beverage market and deliver better-than-expected results. We have forecasted a topline growth of 44% for the beverage business in FY11F, contributing 33% of the Group’s revenue.”
Recent story: SINO GRANDNESS: Ripe for good growth over the next 2 years
