DBS Group Research

DBS initiates coverage on Fu Yu Corp with 35 cents price target

SINGAPORE (Jan 15): While the bottoming out of plastics components manufacturer Fu Yu Corp’s earnings might have been a cause for concern to some investors, the stock could well be poised for a turnaround as earnings are set to pick up. 

DBS Group Research is initiating coverage on Fu Yu with a target price of 35 cents, representing a 40% upside for the stock. 

In a Wednesday report, analyst Ling Lee Keng has highlighted a few reasons why a re-rating is on the horizon for the group in the coming year. 

Better days ahead for MNACT as Festival Walk looks to reopen on Jan 16

SINGAPORE (Jan 13): The new year could well bring about new joys for Mapletree North Asia Commercial Trust (MNACT), as its key asset Festival Walk looks to reopen its doors on Jan 16 – months earlier than expected.

Dragged into the Hong Kong protests, Festival Walk had suffered “extensive damage” as a few groups of protestors smashed glass panels at entrances to the mall, including the office lobby and balustrades on various levels of the property.

Analysts look forward to better year ahead as Singapore's 2019 GDP sinks to slowest growth since financial crisis

SINGAPORE (Jan 2): Analysts expect a “tepid recovery” for the Singapore economy in 2020, after advance GDP estimates released Thursday pointed to the worst growth performance for the city state since the global financial crisis in 2009.

According to the Ministry of Trade and Ministry (MTI), the Singapore economy grew by 0.8% y-o-y in 4Q19, led by a 2.1% growth in the construction sector and a 1.4% growth in the services producing industries.

8 key property trends to look out for in 2020: DBS

SINGAPORE (Jan 2): The Singapore property market is expected to remain resilient for 2020, according to DBS Group Research.

In a Jan 2 report, lead analyst Derek Tan says on the back of this sentiment, the developers under the research house’s coverage have been actively clearing inventories in 2019. “We see dissipating risks to their exposure to Singapore (SG) residential market which we estimate to drop to less than 15% of RNAV based on unsold inventories,” he adds.

Analysts favour this diversified property player amid the lukewarm real estate market

SINGAPORE (Dec 24): Analysts are remaining cautious on the Singapore property and real estate sector, as the city state’s property cooling measures keep the market lukewarm.

Both DBS Group Research and RHB Group Research are keeping their “neutral” ratings on the sector, as property prices remain relatively stagnant, despite resilient sales volumes.

“While developers have been calling for some relaxation in property cooling measures, we believe it is unlikely in the near term as prices remain on an uptrend,” says RHB analyst Vijay Natarajan in a Dec 19 report.

Yangzijiang poised for strong share price rebound on chairman's return: DBS

SINGAPORE (Dec 23): DBS Group Research is maintaining its “buy” call on Yangzijiang Shipbuilding with an unchanged target price of $1.68, representing a 57% upside for the stock.

In a regulatory filing on Dec 22, Yangzijiang reported that its executive chairman Ren Yuanlin was set to return to office on Dec 23. He was on leave for four months to assist in a government probe.

Long bond yields firm but REIT prices shielded from decline, analysts say

SINGAPORE (Dec 20): The FTSE ST Real Estate Investment Trust Index is up 23.5% this year, buoyed by three interest rate cuts by the US Federal Reserve. The Straits Times Index by contrast is up only 8.8% year-to-date.  This year, the US Federal Funds Rate declined from the 2.25% to 2.75% range down to 1.5% to 1.75% as at end-Oct, when the Fed announced its final rate cut for the year.

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Keppel DC REIT slated for 'record DPU' in FY20 on accretive acquisitions, says DBS

SINGAPORE (Dec 18): DBS Group Research is maintaining its “buy” call on Keppel DC REIT (KDCREIT) with a target price of $2.23, translating into a potential 13% upside for the stock. 

DBS analyst Derek Tan cites the REIT’s recent string of accretive acquisitions, namely KDC SGP 4 and DC 1 in Singapore, and Kelsterbach DC, a data centre in Germany. 

Although the REIT’s second data centre in Germany had set it back by some $125.3 million, Tan opines that the REIT is in a comfortable position to fund the acquisition. 

DBS favours REITs, yield stocks with growth prospects amid 'less cloudy' outlook

DBS favours REITs, yield stocks with growth prospects amid 'less cloudy' outlook

SINGAPORE (Dec 18): Against an outlook that is “turning less cloudy”, DBS Group Research has advised investors to adopt a “barbell approach” to strike a balanced risk-reward.

In particular, the research house says it favours real estate investment trusts (REITs) and yield stocks with growth potential, given the anticipated rise at the long end of the yield curve.

Its top picks are Ascendas REIT, Mapletree Logistics Trust, Mapletree Industrial Trust, Keppel DC REIT, Suntec REIT, Frasers Centrepoint Trust and Ascendas India Trust.

Recovery in services sector could pave way for rosier economy in 2020: DBS

SINGAPORE (Dec 17): Singapore’s bottoming economy is set to have tepid recovery boosted by a revival of the services sector in 2020, analysts at DBS say.

“The services sector continues to be a bright spot with loan growth and container throughput growth improving in September 2019. This suggests that trade activity is improving, supported by stronger business loan growth,” note analysts Kee Yan Yeo and Janice Chua.

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