ANALYSTS SAY: Buy, Sell, Hold (8 Feb)

HRnetGroup Limited
Hiring sentiment continues to improve

■ Latest unemployment figures reflect a broad-based improvement in labour
markets for both Singapore and North Asia, which should continue in 2022.
■ We expect HRnet to record 2H21F net profit of S$31m (+20% yoy) given
continued strength in hiring volumes and rising salaries.
■ Reiterate Add with a TP of S$1.15. We think HRnet is well positioned for
further hiring momentum in FY22F as labour markets continue improving.

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LIM & TAN

LIM & TAN

CSE Global (S$0.485, down 1 cent) announced that it grew its new orders in the fourth quarter ended 31 December 2021 (“4Q2021”) by 33.4% year-on-year to S$131.2mln, compared to S$98.4mln in the previous corresponding period (“4Q2020”). About S$85.5mln of new orders were secured by the Group’s Energy sector in 4Q2021, as compared to S$63.0mln in 4Q2020. The 35.7% increase in Energy orders was due to higher Ɵ me and material jobs coupled with newly awarded power and electrification projects.

The above developments are not expected to have any material impact on the consolidated net tangible assets per share or
earnings per share of the Group for the financial year ended 31 December 2021. At $0.485, market cap of CSE Global is $250.3mln, 12-mth trailing P/E is 10.9x, current P/B is 1.3x, dividend yield is 5.7% and its net debt position of $51.7mln equates to net gearing of 26.6%. Maintain BUY for its attractive dividend yield.

DBS ($36.48, up 53 cents) refers to the MAS announcement in relation to the digital disruption. CEO Piyush Gupta said that “In a digital era, customers rightly expect to have seamless and uninterrupted access to online banking services 24/7. This is something we take very seriously. Since the November incident, DBS has taken a series of actions to improve the resilience of our services and incident response. These actions are but a starting point. Over the course of the next few months, together with an independent expert, we will
continue to review our systems and processes to ensure that we do better going forward.

DBS’ market cap stands at $94.4bln and currently trades at 13.6x forward PE and 1.6x PB. Dividend yield stands at 2.8% and consensus target price is at $38.41, representing 5.3% upside from current share price. DBS valuations has torn ahead of its peers OCBC and UOB and
despite the rising interest rate environment, we think that investors should only ACCUMULATE ON WEAKNESS or consider OCBC/UOB to
take advantage of the hawkish environment.