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UOB KAYHIAN |
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Singapore Strategy 1 month circuit breaker, not locked down
■ Singapore imposes is imposing a 1-month circuit breaker from 7 Apr to 4 May to slow the transmission of Covid-19. It is not a lockdown. ■ Essential services remain open - food establishments, wet markets and supermarkets, clinics, hospitals, utilities, transport and key banking services. ■ More handouts are to be announced on 6 Apr. FSSTI target of 2,050 remains, on 9.5x CY21F (average market P/E in GFC from Oct 08-Mar 09).
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REITs – Singapore Retail REITs: Setback From Temporary Relief Measures
The government has enhanced safe distancing measures at retail malls. New legislation would also be enacted this week to give temporary and targeted relief to tenants affected by the COVID-19 pandemic. We have downgraded CMT and FCT to HOLD after factoring in: a) occupancy for suburban malls dropping to 85% and downtown malls to 80% by end-20, and b) negative rental reversion of 20% in 2020. Downgrade retail REITs to MARKET WEIGHT.
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UOB KAYHIAN |
DBS VICKERS |
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Genting Singapore (GENS SP) Worth Holding Out For
The impact of COVID-19 pandemic, including Singapore’s surprise 1-month lockdown starting this Tuesday, has taken a much heavier financial toll on integrated resort operators. Nevertheless, despite our steep earnings cut (-43%) and lower trough valuation of S$0.55 for 2020, our sensitivity analysis continues to suggest bargainprice valuation and highly favourable risk-reward dynamics for longer-term investors. Maintain BUY. Target price: S$0.80.
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Singapore Consumer Retail sales shifting to supermarkets
• New COVID-19 circuit breaker measures will lead to even stronger supermarket sales • Spending on grocery food items to remain robust as more of Spore’s workforce and students stay home • February retail sales already showing a shift from discretionary to staples especially supermarkets • Maintain positive stance on supermarkets and avoid higher end-restaurants
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Check out our compilation of Target Prices
