OCBC | MAYBANK KIM ENG |
Singapore Press Holdings Ltd Rating HOLD (as at 8 October 2021)
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Singapore Semicon Equipment Plenty to look forward to
Sector fundamentals appear attractive We believe the recent correction in Singapore semicon equipment stocks provides a good opportunity to accumulate on dips. On the WFE front, SEMI have raised 2021-22 outlook, which we believe is corroborated by the outlook of the companies we cover, their customers and end-customers. AEM is our top pick due to i) new products and customer(s) in FY22 propelling a new earnings cycle, and ii) easier base-effects beginning 4Q21E.
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CGS CIMB |
CGS CIMB |
Telco - Overall ESG leaders for ASEAN telcos
■ Singtel/StarHub top our ASEAN telco ESG rankings, while NLT also did well overall. Areas of strength: a) data privacy/security, b) network, c) CG/ethics. ■ SG telcos are way ahead of their regional peers in cybersecurity as at endCY20 & are well-placed to capture strong future demand in SG/APAC. ■ We think the SG digital banking business may add 15 Scts/share to Singtel’s SOP valuation, with a further 9 Scts/share accretion if it wins in Malaysia too
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Q&M Dental Group PCR waning, ART shining
■ PCR testing in Singapore is to be reserved for symptomatic Covid-19 patients and travellers requiring on-arrival and pre-departure tests. ■ Previously, PCR tests were required for ART-positive individuals (confirmatory) as well as patients exiting home quarantine. ■ Reduced demand for PCR tests could see FY22F/23F EPS dip by 7%/3% for Q&M. No change in our EPS estimates for now.
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