Excerpts from latest analyst reports....
DBS Vickers says: Stick to Asian-centric companies
Analysts: Janice CHUA, LING Lee Keng, Singapore Research Team
> Stay with companies with strong Asian footprint. We pick companies with Asian dominance while avoiding companies with global exposure.
The recent results have pointed that earnings of companies with a strong Asian footprint have been resilient, while global players have suffered from low yields and margin declines. We like ComfortDelgo, SIA Engineering, SingTel, which offer yields in excess of 4%.
> Upgrade banks to Overweight, prefer REITS to property. We raised banks to overweight, the only sector with decent upgrades in earnings.
BUY OCBC, which tends to be a relative outperformer among banks in uncertain times. We continue to underweight property in favor of REITS, as the risk of anti-speculative policy measures is rising, while yield spreads for REITS remain attractive. Among high yield plays, we like Cache Logistics, CMT, CDL HT, Hutchison Ports.
> Avoid companies with exposure to Europe. Companies with global exposure in the transport, technology and oil and gas sectors and supply chain companies will be the most affected. The list includes NOL, SIA, Olam, Hi P, Cosco, Yangzijiang, STX OSV, and Ascott REIT.
Maybank-Kim Eng highlights 8 stocks to buy in bear market
Analysts: Stephanie Wong, Gregory Yap, Wilson Liew, Ong Kian Lin, Yeak Chee Keong, CFA
The plunging global markets have once again made equity valuations attractive and requests for bottom-picking are flooding in.
We put together a portfolio of eight stocks that currently are on our BUY list and note their respective trough valuations in recent major market corrections – the Global Financial Crisis (GFC) in 2008-09 and the more recent Eurozone debt crisis (started in 3Q11).
Good reference levels. Our eight stocks – Keppel Corporation, Sembcorp Marine, Venture Corporation, CapitaLand, Keppel Land, CapitaMalls Asia, CapitaMall Trust, Ascendas REIT – are selected on the basis of their price-to-book value and, in the case of the REITs, their DPU yield curve.
Be greedy when everyone is fearful. It is always difficult to stay focused when there is so much uncertainty and fear out there.
While it may be a little early to go bargain hunting now, who’s to say that we cannot get our shopping list – and target entry prices – ready.
Full report here.
DMG & Partners says deep value emerging again for HIAP HOE
Analysts: Goh Han Peng & Terence Wong, CFA
Earnings visibility underpinned by pre-sales. The group has a balance of $360m of progress billings to be recognised over the next 2-3 years, primarily from Skyline 360° and Waterscape at Cavenagh.
Meanwhile, construction is progressing ahead of schedule at its Zhongshan Park commercial site along Balestier Road, with the Days hotel and the retail space on track for completion in 1Q13.
Deep value emerging once again. Stock price has been on a roller-coaster ride over the past two months on speculation of a breakup of the company due to the family dispute, rising to a high of 69 cents before retracing much of the gains.
At current price, deep value is emerging once again with the stock trading at 59% discount to its RNAV of $1.22. BUY maintained. Full report here.
Recent story: HIAP HOE: 'Please give more dividend with hotel recurring income'
