Excerpts from RHB report
Analyst: Shekhar Jaiswal
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 |
Upside |
PE |
P/BV |
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 |
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Full report here.