Analysts Lim Siew Khee, Lock Mun Yee and Melvin Lim say that between Sept 20, 2021 and May 4, 2023, all CGS-CIMB’s ESG portfolio picks have gained 24%, while their top ESG picks gained 32.5%, outperforming both the STI’s 7.3% and the SGXSULE’s 6.3%.

The analysts note that since June 19, 2022, all their ESG picks gained 6.5% and top ESG picks gained 9.4%, as compared to the FSSTI at 5% and SGXSULE and 3.6%.

“Specifically, Keppel divested its offshore and marine arm to Sembcorp Marine, transferred its legacy rigs to an asset co and focused more on infrastructure and fund management. Meanwhile, Sembcorp Industries’ successful divestment of its coal power plant in India while adding new renewable capacity investment helped its stock performance. Finally, YZJ’s maiden liquefied natural gas (LNG) carrier newbuild contract in Oct 2022 also spelled hope for more green vessels in the pipeline.” they say.

The analysts say that they advocate for companies which have specific drivers that would help them outperform the STI, while possessing decent ESG credentials and potential to benefit from improvements in their environment, social or governance factors.

<span class='see_also_inread'><b>See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/brokers-calls/it-time-revisit-ifast-ubs-nearly-doubles-its-target-price-10-hong-kong-growth?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>'Is it time to revisit iFast?' UBS nearly doubles its target price to $10 on Hong Kong growth</a></b></span>

The analysts explain that ComfortDelGro has grappled with a challenging operating environment — contending with Covid-19 and rising costs, and had its share price further affected by the share sales among index funds in September 2022.

In addition, they see DBS as having “limited scope for further earnings revisions as rate hikes pause” amid easing inflationary pressures, despite the bank benefitting from net interest margin (NIM) expansions.

Meanwhile, the analysts say OCBC ranks high on various ESG metrics as it won various awards in 2022 and recently appointed a female chairman CEO Helen Wong which could prevent board stagnation.

CGS-CIMB analysts reshuffle ESG stock picks to include OCBC, remove ComfortDelGro and DBS

Local banks 'resilient' in 2023, but MAS warns of deteriorating asset quality, climate transition risks

The new kings and queens of content

Singapore’s headline and core inflation figures increase to 4.7% and 3.3% in October

Changpeng Zhao, brawling titan of Binance, meets a sudden defeat

Optus CEO resigns after nationwide outage; former StarHub CEO to join as COO

'Is it time to revisit iFast?' UBS nearly doubles its target price to $10 on Hong Kong growth

CGS-CIMB keeps 'add' on Yangzijiang Financial as improving conditions pave the way for NPL recoveries

CGS-CIMB maintains ‘add’ on Hyphens Pharma at lowered target price

CGS-CIMB analysts reshuffle ESG stock picks to include OCBC, remove ComfortDelGro and DBS

Related News

Highlights

Local banks 'resilient' in 2023, but MAS warns of deteriorating asset quality, climate transition risks

Related News

Boustead Singapore makes exit offer of $1.18 for Boustead Projects’ shares

DBS on track to hit $10 billion target but challenges lie ahead, especially from geopolitics

Analysts stay positive on Yangzijiang Shipbuilding with recovery of shipping rates and strong new orders