Singapore Stock 4Q20 Results Review - DBS Research 2021-03-11: Earnings U-Turn

Singapore Market Focus - DBS Group Research | SGinvestors.io IFAST CORPORATION LTD. (SGX:AIY) COMFORTDELGRO CORPORATION LTD (SGX:C52) GENTING SINGAPORE LIMITED (SGX:G13) CHINA AVIATION OIL(S) CORP LTD (SGX:G92) UMS HOLDINGS LIMITED (SGX:558)

Singapore Stock 4Q20 Results Review - Earnings U-Turn

  • First positive earnings revision since 2Q19, +2% for FY21F and +3% for FY22F.
  • Boosted by banks and agri products, lowered for shipyards.
  • Earnings (excluding property) to recover back to 97% of pre-pandemic level by end-2021.
  • Strongest y-o-y earnings recovery in 2Q21, to taper off and stay positive beyond that.



Earnings revised up post 4Q20 results – first after 6 consecutive quarters of earnings cuts.

  • Positive earnings revision of 2% for FY21F and 3% for FY22F for stocks under our coverage. This is the first upward earnings revision after 6 consecutive quarters of cuts. The outcome is in line with the anticipated economic recovery as the global vaccination drive unfolds and business activities pick up.
  • The STI now trades at 13.8x (+0.5 standard deviation) 12-month forward P/E. The latest upward earnings revision underpins STI 2021 target of 3180 that coincides with 14.08x (+0.75 standard deviation) blended FY21F/FY22F P/E.


Earnings boost from banks.



Heading back to pre-COVID levels.


Pandemic recovery on track.






Kee Yan YEO CMT DBS Group Research | Janice CHUA DBS Research | https://www.dbsvickers.com/ 2021-03-11
SGX Stock Analyst Report BUY MAINTAIN BUY 7.640 SAME 7.640
BUY MAINTAIN BUY 1.990 SAME 1.990
BUY MAINTAIN BUY 1.000 SAME 1.000
BUY MAINTAIN BUY 1.380 SAME 1.380
BUY MAINTAIN BUY 1.57 SAME 1.57



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