| UOB KAYHIAN | RHB |
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StarHub (STH SP) Focusing On Good Customer Experience To Drive Near-Term Profitability
StarHub will focus on good customer experience and network quality to drive near-term profitability. This will be complemented by cost discipline and ongoing IT transformation to support high customer satisfaction over 2021-23. Separately, Starhub also aims to forge more partnerships to strengthen its enterprise businesses, which can be monetised as Singapore transitions into a 5G era. Maintain BUY with a DCFbased target price of S$1.40.
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DBS (DBS SP) Rescue ≠ National Service; Maintain BUY
Maintain BUY with SGD25.20 TP, 2% upside and 3% yield. DBS Bank India Ltd’s (DBIL) potential amalgamation with Lakshmi Vilas Bank (LVB IN, NR), we believe, will be a positive for long term growth prospects. Although not a material boost to DBS group assets, LVB would provide DBIL with the opportunity to scale up its operations at a faster pace as well as boost digibank’s franchise. Near term, key challenges will be management of asset quality and retention of customer deposits.
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DBS VICKERS |
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ST Engineering
Investment Thesis: Order wins better than expected. Order backlog for STE remained healthy at S$15.8bn as at 3Q20, down marginally from S$15.9bn in 2Q20. STE announced impressive contract wins of S$1.7bn in 3Q20, with a particularly strong showing for the electronics division, which clinched S$1.1bn worth of new orders, its best quarterly performance on record. Tendering activity for smart city projects is strong, as governments prioritise infrastructure spending to revive economic growth.
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Check out our compilation of Target Prices
