As distancing measures are set to ease on April 5, DBS Group Research analyst Alfie Yeo expects stocks exposed to domestic consumption to benefit.

To this end, Yeo has kept “buy” on ComfortDelGro (CDG), Koufu, Sheng Siong Group and Dairy Farm International.

“We are positive on CDG for increased public transport usage, especially on taxi rental rates and Downtown Line (DTL) demand,” writes Yeo in a March 26 flash note.


SEE:DBS Group appoints Managing Director of EDB as non-executive non-independent director


“We are also positive on Koufu as the workforce returns. Kiosks and foodcourts at offices and malls will benefit from higher footfall. About 9% of foodcourts are in offices and around 30% are in malls,” he adds.

Get the latest Singapore corporate news stories for FREE

Valuations for grocery retailers are expected to remain attractive despite the anticipated tapering of grocery demand, says Yeo.

Dairy Farm’s core forward price-to-earnings (P/E) is less than 10 times not including the value of Yonghui and Philippine-listed Robinsons Retail Holdings (RRHI). Sheng Siong Group is priced “attractively” at 20 times forward P/E, below Yeo’s target P/E of 25 times.


For more stories about where the money flows, click here for our Capital section


That said, Yeo is “negative” on Jumbo due to the lack of returning tourists, which may take time to return to pre-Covid-19 levels.

Shares in CDG closed at $1.72 while Koufu, Sheng Siong and Dairy Farm closed 67.5 cents, $1.52 and $4.35 respectively.