ANALYSTS SAY: Buy, Sell, Hold (22 Feb)

buy sell hold 2021

PHILLIP SECURITIES	UOB KAYHIAN
United Overseas Bank Limited – Strong fee income and stable interest income FY21 earnings of S$4.08bn missed our estimates by 6% due to lower-than-expected trading and investment income. 4Q21 DPS stable at 60 cents. Management guidance is single digit loans growth with stable NIMs and provisions. Maintain ACCUMULATE with a higher GGM TP of S$35.70, from S$31.30. We raised FY22e earnings by 8% as we increased NII and fee income estimates for FY22e. We assume 1.46x FY22e P/BV in our GGM valuation, up from 1.26x. Our ROE estimate is raised from 10.2% to 11.5%. There is upside to our estimates from S$300mn writeback and higher NIMs. Every 25bps rise in interest rates can raise NIM by 0.04% and PATMI by 4.3%. Read More ...	SECTOR UPDATE Hospitality REITs – Singapore Resumption Of Reopening Bookings for hotels and serviced residences are expected to pick up as the overcast from the Omicron variant fades. Singapore has reinstated daily VTL (air) quota back to 15,000 and should benefit from a gradual pick-up in MICE events. The UK and EU no longer require testing and quarantine for vaccinated travellers. The easing is timely, coming before the summer holidays. Maintain OVERWEIGHT. BUY ART (Target: S$1.29), CDREIT (Target: S$1.42) and FEHT (Target: S$0.76). Read More ...
UOB KAYHIAN	CGS CIMB
Raffles Medical Group (RFMD SP) 2021: Above Expectations As COVID-19-related Earnings Peak RFMD reported a record-high PATMI of S$84.2m in 2021, up 27.7% yoy and beating our expectations, driven by a full-year’s revenue contribution from PCR swab tests and vaccinations centres. Patient loads in China are improving as operations ramp up. Looking forward, RFMD is set to face a sharp decline in COVID-19-related revenue. We remain positive on RFMD’s medium to long-term outlook but do not see any near-term catalysts. Downgrade to HOLD with a lower DCF-based target price of S$1.34. Read More ...	SIA Engineering Slowly but surely ■ 3QFY3/22 net profit of S$33m (+217% qoq) was above expectations due to one-time tax provision writeback from associates. ■ EBIT loss in 3Q widened qoq due to tapering government support. We lower our FY23-24F EPS by 5-9% in view of higher-than-expected staff expenses. ■ Progressive ramp up in VTL traffic should help 1HFY3/23F revenue growth. Reiterate Add with unchanged TP of S$2.92, pegged to 2.0x CY22F P/BV. Read More ...

Counter Name	Last	Change
AEM Holdings	1.910	0.090
Best World	2.490	0.010
Boustead Singapore	0.950	-
Broadway Ind	0.132	-
China Aviation Oil (S)	0.870	0.005
China Sunsine	0.395	-
ComfortDelGro	1.440	-0.010
Delfi Limited	0.875	0.005
Food Empire	1.120	-0.010
Fortress Minerals	0.285	-0.015
Geo Energy Res	0.300	0.010
Hong Leong Finance	2.420	-
Hongkong Land (USD)	3.450	0.030
InnoTek	0.510	-
ISDN Holdings	0.305	0.005
ISOTeam	0.051	0.002
IX Biopharma	0.038	-0.001
KSH Holdings	0.250	-
Leader Env	0.049	-
Ley Choon	0.053	0.003
Marco Polo Marine	0.071	0.001
Mermaid Maritime	0.156	0.014
Nordic Group	0.305	-
Oxley Holdings	0.088	0.001
REX International	0.128	0.004
Riverstone	0.885	0.025
Southern Alliance Mining	0.480	-
Straco Corp.	0.490	0.005
Sunpower Group	0.215	0.010
The Trendlines	0.062	-0.001
Totm Technologies	0.021	-
Uni-Asia Group	0.825	0.005
Wilmar Intl	3.200	0.020
Yangzijiang Shipbldg	1.760	0.020

Counter Name

Last

Change

AEM Holdings

1.910

0.090

Best World

2.490

0.010

Boustead Singapore

0.950

Broadway Ind