SINGAPORE (Nov 30): OCBC Investment Research is maintaining “neutral” on the Singapore industrials sector, indicating a preference for ST Engineering and Singapore Airlines (SIA) due to their earnings resilience and low valuations, respectively.

Both stocks have been rated “buy” with fair value estimates of $3.95 for ST Engineering and $10.71 for SIA, which was upgraded in mid-Oct on valuations after it closed at $9.15 to imply a price-to-book value of 0.8 times, which is near 2008 crisis levels.

In a Thursday report, lead analyst Low Pei Han says she sees the offshore oil and gas (O&G) sector continuing its gradual recovery, underpinned by cost deflation across the industry as well as lower break evens.

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