Singapore Stock Alpha Picks (May 2018) - UOB Kay Hian 2018-05-03: Taking Profit On Sheng Siong & Adding CSE Global.

Singapore Stock Alpha Picks - UOB Kay Hian 2018-05-03: Solid Performance In April  Taking Profit On Sheng Siong And Adding Cse Global. Singapore Stock Alpha Picks Stocks To Watch May 2018 CSE GLOBAL LTD SGX: 544 OVERSEA-CHINESE BANKING CORP SGX: O39 DBS GROUP HOLDINGS LTD SGX: D05 CITIC ENVIROTECH LTD. SGX: CEE WING TAI HLDGS LTD SGX: W05 SINGTEL SGX: Z74 CDL HOSPITALITY TRUSTS SGX: J85 CITY DEVELOPMENTS LIMITED SGX: C09 KEPPEL CORPORATION LIMITED SGX: BN4

Singapore Stock Alpha Picks - Solid Performance In April;  Taking Profit On Sheng Siong & Adding CSE Global.



    WHAT’S NEW

    • A good month. Our portfolio performed well in April, with most stocks (with the exception of developers) notching up gains. Most notables were the banks, which delivered 8-12% gains in April (OCBC +8% and DBS +12%). 
    • Sheng Siong, which was added in early-April, also delivered a strong 10% return.



    ACTION


    Adding newly-initiated CSE and removing Sheng Siong.

    • We take profit on Sheng Siong given its strong 10% return in April, which resulted in a downgrade in our rating to HOLD. In its place, we add in newly-initiated CSE, which looks like an excellent proxy to recovering oil prices with a sustainable dividend yield of 6.7%.


    CSE Global – BUY (Nicholas Leow/Edison Chen)



    Share Price Catalyst

    • Event: New contract wins and recovery in earnings.
    • Timeline: 6-12 months.


    OCBC – BUY (Jonathan Koh)


    Share Price Catalyst

    • Event: Impending IPO for Great Eastern Life Malaysia in 2H18.
    • Timeline: 6 months.


    DBS – BUY (Jonathan Koh)


    Share Price Catalyst

    • Event: Further rate hikes leading to higher NIMs.
    • Timeline: 3-6 months.


    Keppel Corp – BUY (Foo Zhi Wei/Andrew Chow)


    Share Price Catalyst

    • Event: Positive newsflow from contract wins and further de-leveraging from O&G assets.
    • Timeline: 6-12 months.


    City Development – BUY (Vikrant Pandey/Loke Pei Hao)


    Share Price Catalyst

    • Event: Upward re-rating of RNAV by consensus on rising asset prices. Positive data points on residential property.
    • Timeline: Positive newsflow on Amber Park launch and projects within its vicinity in 2018.


    CD REIT – BUY (Vikrant Pandey/Loke Pei Hao)


    Share Price Catalyst

    • Event: Positive data points on visitor arrivals, ALOS, ADR, RevPAR and supply pipeline.
    • Timeline: 1H18.


    Singtel – BUY (Jonathan Koh)


    Share Price Catalyst

    • Event: Fund flow into laggards and defensive stocks, including Singtel which offers a good dividend yield.
    • Timeline: 3-6 months.


    Wing Tai – BUY (Vikrant Pandey/Loke Pei Hao)


    Share Price Catalyst

    • Event: Launch of the recently-acquired Serangoon North Avenue 1 site. We also see potential for Wing Tai to buy more landbank given its S$1.6b acquisition headroom.
    • Timeline: Potentially 6-9 months for landbank acquisition or launch of its Serangoon North Avenue 1 site.


    Citic Envirotech – BUY (Edison Chen/Nicholas Leow)


    Share Price Catalyst

    • Event: Potentially more contract wins and share buybacks by CEL.
    • he Chinese government. This would benefit the company, which has an impressive track record and technology.







    Singapore Research UOB Kay Hian | https://research.uobkayhian.com/ 2018-05-03
    SGX Stock Analyst Report BUY Maintain BUY 0.580 Same 0.580
    BUY Maintain BUY 16.020 Same 16.020
    BUY Maintain BUY 35.50 Same 35.50
    BUY Maintain BUY 1.060 Same 1.060


    * Alpha Picks denotes a timeframe of 1-3 months and not UOBKH’s usual 12-month investment horizon for stock recommendation.


    Advertisement



    MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



    loading.......



    ANALYSTS SAY


    loading.......