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 Holdings4.220-0.070
AusGroup0.023-0.001
Avi-Tech Electronics0.465-
Best World Int.1.360-
CEI0.9150.005
China Sunsine0.315-0.005
CNMC GoldMine0.3600.015
CSE Global0.525-0.010
Food Empire0.560-0.010
Golden Energy0.155-
GSS Energy0.062-0.002
ISDN Holdings0.3950.030
ISOTeam0.141-
IX Biopharma0.2900.010
JB Foods0.5650.015
KSH Holdings0.340-0.005
Medtecs Intl0.970-0.030
Moya Asia0.070-0.002
Nordic Group0.2200.010
Oxley Holdings0.215-
Procurri0.300-
REX International0.184-0.003
Riverstone4.6900.160
Roxy-Pacific0.3250.005
Sing Holdings0.370-0.005
SingMedical0.2600.005
Straco Corp.0.495-
Sunningdale Tech1.180-0.020
Sunpower Group0.530-0.005
The Trendlines0.108-0.002
Tiong Seng0.160-
Uni-Asia Group0.470-
Yangzijiang Shipbldg0.970-

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