consumer sector

RHB keeps top consumer sector pick Delfi at 'buy' given inexpensive valuation, robust revenue and margins growth

SINGAPORE (May 27): RHB Research is reiterating its strong “buy” call on Delfi with a target price of $1.68, which implies 28 times FY19F P/E and implies 24% upside and 2.5% dividend yield.

This comes after the confectionery manufacturer posted 21.6% y-o-y higher 1Q earnings of $12.6 million on the back of revenue growth and an improved gross margin, post initiatives to cull less-profitable stock keeping units (SKUs) as well as due to higher sales of premium products.

3 top consumer picks revealed as RHB expects sector to outperform ST Index in 2019

SINGAPORE (Jan 4): RHB Research is maintaining its “overweight” rating on the Singapore consumer sector, against the backdrop of a global economic slowdown and uncertainty arising from trade tension between the US and China.

“We believe the consumer sector will outperform the [Straits Times Index], given its more defensive nature,” says analyst Juliana Cai in a Friday report.

According to a Nielsen survey released mid-Dec 2018, consumer confidence improved to a high of 98 points in 3Q18. However, it remains in the pessimistic zone, below the baseline of 100 points.

Supermarket, e-commerce plays draw investor interest: CGS-CIMB

SINGAPORE (Sept 14): CGS-CIMB Research is keeping its “overweight” rating on the consumer sector, amid optimism that a better-than-expected GDP growth rate in 2018 could spur retail consumption.

The brokerage hosted a Consumer Day on Sept 11, and says investors were largely positive on domestic supermarket plays and also expressed interest in learning about the key value propositions of the e-commerce companies.

5 consumer stocks to count on in the new age of e-commerce

SINGAPORE (Dec 4): Phillip Capital is remaining “overweight” on Singapore’s consumer sector on expectations of a continued rebound in the city state’s economic conditions as well as improving consumer sentiment.

In a Monday report, analyst Soh Lin Sin refutes the idea that Amazon will grab all market share from existing players, due to the nature of local consumers and the advantages which local players continue to have over Amazon’s recently-launched Prime Now service.  

Could Singapore’s consumer sector see a pickup in investor sentiment?

SINGAPORE (June 13): OCBC Investment is maintaining its “neutral” rating on Singapore’s consumer sector given a lack of broad-based improvement for the retail scene, as well as the continued expansion and growth of e-commerce players.

This comes even as local retail sales data for April registered slightly above consensus, with retail sales up 2.6% on-year on higher sales in discretionary segments like Department Stores and Watches & Jewellery.

Consumer space still offers attractive growth

SINGAPORE (Feb 1): OCBC is keeping its “neutral” call for the consumer sector but reiterating its “buy” on supermarket operator Sheng Siong Group with a target price of $1.15, thanks to the company’s management strength and largely stable, cash-generative business.

In a Wednesday report, lead analyst Jodie Foo says the year started off on a broadly positive note. The STI is up 5.8% year to date, while the FTSE Consumer Goods Index and FTSE Consumer Services Index were up 3.9% and 1.1%, respectively.

This consumer stock should remain steady in the face of stronger competition

SINGAPORE (Nov 30): OCBC Investment Research has declared Sheng Siong Group (SSG) as its latest and sole preferred “buy” pick at an estimated fair value of $1.15, while maintaining its “neutral” stance on Singapore’s consumer sector.

In a Tuesday report, lead analyst Jodie Foo notes how the consumer sector saw a series of privatisations and acquisitions, which suggests that valuations have been generally reasonable.

Dissecting the GSS disappointment

SINGAPORE (Aug 24): RHB Research is maintaining its “overweight” rating on the consumer sector but remains “negative” on discretionary retailers on weak consumer sentiment, the failure of the Great Singapore Sales (GSS) to excite shoppers, as well as the rising popularity of online shopping.

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