DBS Group Research Model Portfolio - Growth
Your primary investment goal is capital growth. You can tolerate a fair amount of fluctuations in the value of your stock investment in anticipation of possible higher returns. The investment horizon is up to 12 months
We start the Growth portfolio with just 2 picks - SembCorp Industries and Japfa Ltd. The lowest number of stocks in the portfolio reflects our cautious stance on corporate earnings growth in the current uncertain macro economic environment.
SEMBCORP INDUSTRIES
- Stripping out market capitalisation of SMM and Salalah, utilities business is valued at unjustifiably low valuation of 5x PE and 0.5x PB.
- We also expect the reversal of price trend in the event of elimination of SMM privatisation overhang.
Company Guide:
JAPFA LIMITED
- Beneficiary of rising DOC/broiler prices in Indonesia, stable IDR, aggressive expansion in Vietnam, stabilising raw milk prices in China
Company Guide:
Singapore Research Team
DBS Vickers
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http://www.dbsvickers.com/
2016-02-11
