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Property Devt & Invt Strong private home price showing in 1Q
■ 1Q21 flash estimate for private home prices was up 2.9% qoq. ■ Continued strong uptick in prices could heighten risk of new cooling measures.. ■ Reiterate sector Overweight on valuations. Preferred picks: CAPL, UOL, CIT. Flash estimate for private home prices shows stronger qoq growth ● According to the Urban Redevelopment Authority (URA), the property price index flash estimate for 1Q21 showed that private home prices rose 2.9% qoq vs. the 2.1% qoq increase in 4Q20. Prices in the Rest of Central Region (RCR) delivered the strongest improvement of +6.1% qoq vs. the +0.9% rise in Outside Central Region and the 0.3% qoq decline in private home prices in the Core Central Region. Meanwhile, the Housing Development Board resale price flash estimate showed that HDB resale prices rose 2.8% qoq in 1Q21.
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Phillip 2Q21 Singapore Strategy Music is still playing
SINGAPORE | STRATEGY 1 April 2021 Review: Alas, the STI turned in a respectable performance in 1Q21. Its 11.3% gain outperformed most global equity indices and asset classes, except commodities (Figure 4). Leading the rally were cyclical stocks: shipping, transportation and finance. REITs were the major underperformers (Figure 2). DPUs in FY20 were cut by 16%. The recovery in most sub-sectors such as retail, office and industrial was lacklustre. Rising interest rates further dampened investor appetite for the sector.
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PHILLIP SECURITIES |
UOB KAYHIAN |
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Singapore Banking Monthly Extending their green shoots SINGAPORE | BANKING & FINANCE | UPDATE
Current interest rates of 0.42% are 11bps higher than the start of the year. Loans fell 0.88% YoY in February but grew 0.46% MoM, the fourth consecutive month of growth. SGX’s SDAV was third-highest on record but down YoY alongside DDAV asthere was an anomalous selloff during the COVID-19 outbreak last year. Maintain Overweight. Loans remain on path for recovery and interest rates are stable with a positive economic outlook. We continue to prefer OCBC (OCBC SP, BUY, TP: S$13.65) for its WM and insurance franchises.
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Samudera Shipping Line (SAMU SP)
Beneficiary Of Favourable Container Freight Rate, Trading At A Huge Bargain With a fleet of 24 container ships, Samudera provides container shipping transportation of cargo in Asia. Samudera is benefitting from a rise in container freight rates to a multi-year high since 2H20 due to high demand in e-commerce trade and supply disruption due to port congestion. Its 2020 core net profit grew 330% yoy, excluding impairments. For 2020, Samudera is trading at 6.5x PE and 0.6x P/B vs peers’ average of 12.1x PE and 3.1x P/B. Net cash forms 50% of its market cap.
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