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 Holdings1.2800.020
AusGroup0.022-
Avi-Tech Electronics0.3450.005
Best World Int.1.360-
CEI0.950-
China Sunsine1.140-0.010
CNMC GoldMine0.260-0.010
CSE Global0.470-
Eagle HTrust USD0.660-
Food Empire0.515-0.005
Golden Energy0.169-
GSS Energy0.0710.001
ISDN Holdings0.2150.005
ISOTeam0.230-
JB Foods0.660-
KSH Holdings0.450-
Miyoshi0.035-
Moya Asia0.063-0.002
Nordic Group0.270-
Oxley Holdings0.315-0.005
Procurri0.365-
REX International0.0930.005
Riverstone0.9800.010
Roxy-Pacific0.375-
Sing Holdings0.385-
SingMedical0.310-
Straco Corp.0.720-0.020
Sunningdale Tech1.200-
Sunpower Group0.480-
The Trendlines0.0890.001
Tiong Seng0.200-
Uni-Asia Group0.715-
Yangzijiang Shipbldg0.940-0.010

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