ANALYSTS SAY: Buy, Sell, Hold (15 Apr '21)

Banks

1Q21F: Looking forward to a strong quarter

■ We expect DBS and OCBC’s 1Q21F results to be a showdown of wealth management and trading income strength, on the back of robust sentiment.

■ Loan growth likely rebounded in 1Q21F from 4Q20 contractions while NIMs stabilised qoq. We expect 42bp/25bp of credit costs for DBS/OCBC in 1Q21F

■ We think OCBC’s valuation of 1.1x FY21F P/BV (1 s.d. below 15-yr mean) looks more attractive vs. DBS at 1.4x FY21F P/BV (1 s.d. above 15-yr mean).

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Singapore Post

Focusing on driving eCommerce
growth

• eCommerce continued to drive revenue growth

• Higher conveyance costs could weigh on margin

• Transformation underway to maintain sustainability

Investment thesis
Singapore Post’s (SPOST) share price rose ~8% MTD in April as investors viewed it as a potential restructuring play following Singapore Press Holdings and CapitaLand Limited’s strategic review and proposed
restructuring. We are currently not aware of any material change in SPOST’s operations and guidance.
We note that SPOST had undertaken a series of restructuring exercises to step up its transformation and growth in the digital age in recent years. However, we believe more time is needed for SPOST’s initiatives to bear fruit. SPOST is likely to continue to face headwinds from declining volumes of letters and printed papers in Singapore, and higher conveyance costs for its international post and parcel business. On the other
hand, we expect SPOST to continue its efforts to strengthen its e-commerce logistics capabilities which contributed ~65% of revenue in 1HFY21. After adjustments, our fair value estimate increases from
SGD0.71 to SGD0.74.

DBS VICKERS 

 DBS VICKERS

GHY Culture & Media Holding

Catch the rising star

• Initiate coverage with BUY and TP of S$1.00 based on sum-of-parts valuation, offering potential upside of 32%

• Leveraging on strong partnerships with top online video streaming platforms to derive c.40% growth in revenue

• Healthy production pipeline to drive 46%/39% earnings growth in FY21F/FY22F

• Flexible revenue models; end-to-end production capabilities with a strong management team

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