Singapore Market Focus - DBS Research 2021-06-02: Speeding Towards Reopening

Singapore Market Focus - DBS Research | SGinvestors.io GENTING SINGAPORE LIMITED (SGX:G13) KOUFU GROUP LIMITED (SGX:VL6) FIRST RESOURCES LIMITED (SGX:EB5) WILMAR INTERNATIONAL LIMITED (SGX:F34) COMFORTDELGRO CORPORATION LTD (SGX:C52)

Singapore Market Focus - Speeding Towards Reopening




Positive earnings revision

  • Singapore stocks under our coverage saw a second consecutive quarter of positive earnings revision at +2.3% for FY21 and +1.5% for FY22F. FY21F earnings is now expected to be 2% above FY19 (pre-COVID) level. UOB (SGX:U11) and OCBC (SGX:O39) led positive revisions with +5.5% for FY21F and +4.8% for FY22F.


STI 2021 year-end target raised

  • We lift our 2021 STI year-end target by 4.5% to 3325 (previously 3180) pegged to 13.48x (+0.25 standard deviation) FY22F P/E.
  • Only 6 out of 30 STI index component stocks are directly affected by the tighter measures (e.g. Genting Singapore (SGX:G13), Mapletree Commercial Trust (SGX:N2IU), SATS (SGX:S58), ComfortDelGro (SGX:C52)). The Singapore government has kept its 2021 GDP growth forecast at 4- 6% as stronger-than-expected 1Q and improving external environment may offset the 2Q slowdown due to current anti-COVID measures. Bias is on the upside towards 3300 by end July with support at 3115.


Inflation back in focus


Speeding towards reopening






Kee Yan YEO CMT DBS Group Research | Janice CHUA DBS Research | Wei Le CHUNG DBS Research | https://www.dbsvickers.com/ 2021-06-02
SGX Stock Analyst Report BUY MAINTAIN BUY 0.950 SAME 0.950
BUY MAINTAIN BUY 0.770 SAME 0.770
BUY MAINTAIN BUY 1.830 SAME 1.830
BUY MAINTAIN BUY 6.670 SAME 6.670
BUY MAINTAIN BUY 1.990 SAME 1.990



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