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Jumbo Group Limited Recovery priced in
■ Jumbo’s FY9/20 core net loss was wider than we expected as social distancing measures had severely impacted footfall since Feb. ■ We expect Jumbo Seafood’s outlets in Singapore to stay EBITDA negative; phase 3 and border reopening are key to Jumbo’s return to profitability. ■ Upgrade to Hold as we think the worst is over, but current valuation has priced in two years of recovery. Koufu remains our preferred sector pick.
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DBS Group Pricing in an accelerated recovery
■ We think non-II drivers of wealth and treasury income will continue rising towards new normal levels, buffering the impact of flattish NIMs ahead. ■ Reiterate Add with a higher TP of S$28 as market prices in vaccine optimism. ■ We peg TP to a sustainable forward ROE of 11.5%, factoring in a recovery towards pre-pandemic valuations of c.1.3x P/BV over FY17-19.
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CGS CIMB |
CGS CIMB |
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OCBC Looking forward to more normal scenarios
■ We think that market has started looking past asset quality risks and NIM negativity, towards a more normalised scenario as lockdown measures ease. ■ Reiterate Add with a higher TP of S$12.52 as incremental newsflow from Covid-19 vaccine developments boost forward earnings visibility. ■ We peg TP to a sustainable forward ROE of 10%, factoring in a recovery towards pre-pandemic valuations of c.1.1x P/BV over FY17-19.
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United Overseas Bank Looking past asset quality negativity
■ Positive repayment trends post-moratoriums underscore our expectation of asset quality pressures moderating in FY21F, allaying BV risks from SMEs. ■ Reiterate Add with a higher GGM-based TP of S$27.72. Resumption of 50% dividend payouts when MAS lifts dividend cap is a re-rating catalyst. ■ We peg TP to a sustainable forward ROE of 10%, factoring in a recovery towards pre-pandemic valuations of c.1.1x P/BV over FY17-19.
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Check out our compilation of Target Prices
