2021 Singapore Stock Market Strategy - UOB Kay Hian 2020-12-09: Sector Outlook & Weightings For 1H21

Singapore Stock Market Strategy - UOB Kay Hian Research | SGinvestors.io CITY DEVELOPMENTS LIMITED (SGX:C09) VENTURE CORPORATION LIMITED (SGX:V03) COMFORTDELGRO CORPORATION LTD (SGX:C52)

2021 Singapore Stock Market Strategy - Sector Outlook & Weightings For 1H21



Our Singapore stock market sector weightings:



Singapore Stock Market Sector Outlook Comments For 1H21 – Large Caps


Aviation


Banks


Gaming


Healthcare


Land Transport

  • Analyst: Lucas Teng.
  • Sequential recovery will remain in play as ComfortDelGro (SGX:C52)’s taxi segment will likely see lower rental rebates in 4Q20 and into 1H21. Ridership boost from a resumption of tourism could provide further uplift for the segment. We expect the taxi segment to return to operating profitability levels in 1H21.
  • In the hard-hit UK market, news of continued funding support for Transport for London beyond the bailout timeline of Mar 21 could also lift some overhang.

Media


Plantation


Property


REITs


Shipyard


Technology


Telecoms



Singapore Small & Mid-Cap Stock Picks


Frencken Group (SGX:E28)


BRC Asia (SGX:BEC)

  • Gross margins have improved since BRC Asia (SGX:BEC)’s acquisition of Lee Metal in 2017. 2020 Build-To-Order flat launches were slightly higher than that in 2019.
  • We opine that new construction contracts awarded will likely recover off the low seen in Aug 20, seeing that new contracts awarded in Sep 20 were up (+102% m-o-m). With the gradual normalisation of construction activities and sustained margins, we are optimistic of BRC Asia (SGX:BEC)’s recovery and expect earnings to rebound strongly in FY21 at 88% y-o-y.

Food Empire (SGX:F03)


InnoTek (SGX:M14)






Adrian LOH UOB Kay Hian Research | Singapore Research Team UOB Kay Hian | https://research.uobkayhian.com/ 2020-12-09
SGX Stock Analyst Report BUY MAINTAIN BUY 9.200 SAME 9.200
BUY MAINTAIN BUY 23.760 SAME 23.760
BUY MAINTAIN BUY 1.780 SAME 1.780



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