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
The Growth portfolio gained 28.4% on an average return basis, outperforming STI’s 11.9% gain by a wide margin. Japfa and SembCorp Industries returned 31.6% and 25.2% respectively. We maintain our picks in the portfolio.
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:
Previous Report:
Singapore Research Team
DBS Vickers
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http://www.dbsvickers.com/
2016-04-15
