Excerpts from RHB report

Analyst: Shekhar Jaiswal

Stay invested for the long term, while focusing on income-generating equities for the short term.


Slowing economic growth may limit the upside for Singapore’s (SG) equity market despite reasonable valuations.

Nevertheless, we expect income-generating assets and defensive stocks to outperform in the short term.

We recommend investors to remain invested in SG for the long term, as the country’s ongoing transformation will offer investors opportunities to participate in the development of the real estate, financial, telecom and transport sectors.



Stick to defensive names. Amidst an uncertain macroeconomic environment, investors should stay selective and invest in companies that offer low earnings volatility, and have low gearing or net cash balance sheets, on top of sustainable dividends.

In addition to office and hospitality REITs, selective stocks from the consumer and industrial sectors are our preferred picks.


Company

Target price
SGD

Upside  
(%)

PE
Dec-19F

P/BV
Dec-19F

Yield (%) Dec-19F

Large Cap

     

ST Engineering

4.70

22.4

19.8

5.2

3.9

Suntec REIT

2.08

9.5

17.6

0.9

5.3

UOB

29.50

14.9

9.9

1.1

5.1

Wilmar International

4.75

27.7

14.0

1.0

2.7

Small-Mid Cap

   

CDL Hospitality

1.79

9.8

15.5

1.1

5.7

CSE Global

0.69

50.0

9.6

1.3

6.0

Fu Yu Corp

0.24

9.1

12.3

1.0

7.7

Manulife US REIT^

1.00

11.7

13.4

1.1

6.8

Oxley Holdings**

0.43

34.4

3.5

0.8

9.4

Sheng Siong Group

1.32

16.8

21.9

5.5

3.3

Note: **FY20 (Jun);  ^ USD; Data  as at 27 Sep 2019
Source: Company data, RHB


Full report here. 


Share Prices

Counter NameLastChange
AEM Holdings4.280-0.030
Avi-Tech Electronics0.320-
Broadway Ind0.186-0.001
China Sunsine0.440-
DISA0.004-
Food Empire0.535-
Fortress Minerals0.420-0.025
Geo Energy Res0.440-
Golden Energy0.750-
GSS Energy0.060-
InnoTek0.540-0.005
ISDN Holdings0.545-0.005
ISOTeam0.1080.003
IX Biopharma0.172-0.002
Jiutian Chemical0.109-
KSH Holdings0.350-
Leader Env0.059-0.001
Medtecs Intl0.189-0.004
Meta Health0.038-0.001
Moya Asia0.055-
Nordic Group0.4050.010
Oxley Holdings0.1770.002
REX International0.2900.010
Riverstone0.7550.005
Sinostar PEC0.230-
Southern Alliance Mining0.620-0.005
Straco Corp.0.400-0.020
Sunpower Group0.4050.005
The Trendlines0.104-
Totm Technologies0.142-0.004
UG Healthcare0.225-
Uni-Asia Group1.060-0.070
Wilmar Intl4.100-
Yangzijiang Shipbldg0.900-0.005

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