Home Capital Broker's Calls

HRnetGroup downgraded to 'hold' on weaker earnings outlook, lower valuation

Michelle Zhu
Michelle Zhu5/14/2019 10:54 AM GMT+08  • 2 min read
HRnetGroup downgraded to 'hold' on weaker earnings outlook, lower valuation
SINGAPORE (May 14): DBS Vickers Securities is downgrading its call on HRnetGroup to “hold” from “buy” with a lower price target of 85 cents compared to $1.05 previously on expectations of a weaker Singapore jobs market, which is believed to drag o
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (May 14): DBS Vickers Securities is downgrading its call on HRnetGroup to “hold” from “buy” with a lower price target of 85 cents compared to $1.05 previously on expectations of a weaker Singapore jobs market, which is believed to drag on the group’s earnings growing forward.

The research house is now anticipating FY19F core earnings to decline due to lower productive headcount (PHC), weaker jobs outlook for professional placement, and a loss of demand from fintech companies in Singapore.

As such, DBS has reduced its earnings projects and valuation peg to 11 times from 15 times previously on ex-cash earnings, which implies 16 times FY19F P/E.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.