ANALYSTS SAY: Buy, Sell, Hold (2 Mar)

buy sell hold 2021

PHILLIP SECURITIES	UOB KAYHIAN
HRnetGroup Limited – Another record year expected Results beat our estimates. FY21 revenue and PATMI was 114%/108% of our forecast. 2H21 PATMI grew 14% YoY to S$29.6mn. Excluding fair value losses, PATMI would have jumped 37%. 2H21 growth was from both permanent recruitment (+36% YoY) and flexible staffing (+43% YoY). FY21 DPS increased 60% to 4 cents, including a 1 cent special dividend. We expect another record year in FY22e. Volume growth in permanent hires will come from recovering economic conditions and clients working more with recruiters due to the tight labour market. Rising salaries will be the driver for higher margins. Flexible staffing remains healthy as others sectors start to re-open. We maintain BUY. Our target price is raised to S$1.18 (previous S$1.05) as we raise FY22e earnings by 20%. The valuation metric is lowered from 14x to 12x PE FY22e ex-cash. We tag to the mid-range of the historical 5-year range as the labour recovery has moved past the peak cycle. HRnet pays a dividend yield of 5%, net cash of S$327mn and unlevered ROEs of 16% (or above 100% ex-cash). Read More ...	CSE Global (CSE SP) 2021: Results Below Expectations; Cautious Outlook For Energy Segment 2021 earnings of S$15m (-46% yoy) were below expectations, forming 65% of our estimate, mainly due to weaker revenue from the Americas region, which was further impacted by unabsorbed labour cost. CSE expects a steady stream of projects for the infrastructure and mining & minerals segments but remains cautious on the energy front. Weaker revenue from the segment coupled with higher operating cost could continue to weigh on earnings. Downgrade to HOLD with lower target price of S$0.44. Read More ...
UOB KAYHIAN	PHILLIP SECURITIES
Singapore Post (SPOST SP) 3QFY22: Robust Quarter, Spearheaded By E-commerce SPOST reported strong operating profit of S$38m, in line with our expectations and driven by e-commerce. Domestic e-commerce volumes surged due to growing mass adoption. Australian operations remained steady despite Omicron outbreaks. We become more optimistic about international post as elevated air freight rates start to soften. Upgrade to BUY with a higher target price of S$0.78. Read More ...	BHG Retail REIT – Stable growth with resilient portfolio Committed occupancy improved to 97.0% from 93.5% in 2H20 as four portfolio assets saw recovery. Gross revenue and net property income increased by 10.8% and 6.6% YoY respectively. 2H21 DPU was up by 4% to 1.05 Scts. Read More ...

Counter Name	Last	Change
AEM Holdings	1.860	0.020
Best World	2.500	0.020
Boustead Singapore	0.950	-
Broadway Ind	0.148	0.003
China Aviation Oil (S)	0.870	0.005
China Sunsine	0.400	0.010
ComfortDelGro	1.380	-0.010
Delfi Limited	0.875	-
Food Empire	1.110	-0.010
Fortress Minerals	0.295	-0.015
Geo Energy Res	0.305	0.005
Hong Leong Finance	2.440	0.020
Hongkong Land (USD)	3.500	0.080
InnoTek	0.510	0.005
ISDN Holdings	0.305	0.005
ISOTeam	0.050	0.003
IX Biopharma	0.040	0.001
KSH Holdings	0.250	0.005
Leader Env	0.049	-
Ley Choon	0.054	-0.001
Marco Polo Marine	0.067	-0.001
Mermaid Maritime	0.138	0.003
Nordic Group	0.305	-
Oxley Holdings	0.087	-0.003
REX International	0.126	0.002
Riverstone	0.930	-
Southern Alliance Mining	0.485	0.005
Straco Corp.	0.480	-0.010
Sunpower Group	0.220	-0.010
The Trendlines	0.063	-
Totm Technologies	0.020	0.001
Uni-Asia Group	0.810	-
Wilmar Intl	3.130	-0.030
Yangzijiang Shipbldg	1.740	-0.010

Counter Name

Last

Change

AEM Holdings

1.860

0.020

Best World

2.500

0.020

Boustead Singapore

0.950

Broadway Ind