investing idea

Taking stock of 2019's investing ideas

SINGAPORE (Jan 17): Throughout 2019, we wrote about many investing ideas. We had six conviction picks based mainly on valuation and business outlook, and a seventh, Great Eastern Holdings. The stocks were picked from screenings through various sectors so it was more of a top-down approach. The screenings involved various valuation metrics. There was no specific theme, but some ideas were based on balance sheet strength, and others on business outlook. The common theme was that the stocks were undervalued relative to their share price at the time.


AEM started at 'buy' by DBS as demand for new technology picks up

SINGAPORE (Nov 29): Precision engineering services firm AEM Holdings is flying high. Year-to-date, its share price has more than doubled to close at $1.71 on Nov 28, climbing from 82.5 cents at the start of the year.

Yet, market watchers believe the counter is poised to soar even higher.

DBS Group Research is initiating coverage on AEM with a “buy” recommendation and a target price of $2.38, representing a potential upside of 39%.

Analysts keep up ravenous appetite for Jumbo

SINGAPORE (Nov 27): Analysts are still hungry for more of Jumbo even after the group's revenue came in flat at about $153.6 million in FY19 from $153.7 million in FY18.

Revenue from the group’s Singapore operations increased by $4.0 million on the back of two new Jumbo Seafood restaurants – a new Zui Yu Xuan Teochew Cuisine restaurant and a new Chao Ting Teochew Pao Fan outlet.

However, the increase was negated by a $4.1 million decline in revenue from its restaurants in China.

ThaiBev brings some cheer to analysts as full-year results signal recovery

SINGAPORE (Nov 25): A recovery seems to be in full swing for Thai Beverage.

Year-to-date, the mainboard-listed Thailand-based beverage producer has romped to total returns of 50.0%, outperforming the total returns YTD of 28.8% for the FSTE Straits Times Consumer Goods Index.

Yet, there seems to be still more room for its share price to climb. Over the past month, six analysts covering the counter have revised their target prices upwards, while only one has moderated the target price downwards.

Sasseur REIT gets 'buy' calls all around as China retail outlet malls sizzle

SINGAPORE (Nov 20): Analysts are unanimously bullish on Sasseur Real Estate Investment Trust (Sasseur REIT), as the China-focused retail outlet mall manager continues to shine.

Of the four brokerages covering Sasseur REIT, Maybank Kim Eng Research, UOB Kay Hian Research and DBS Group Research have “buy” recommendations on the counter, while CGS-CIMB Research has an “add” call.

Analysts hold on to hopes of property market rebound as APAC Realty misses 3Q estimates

SINGAPORE (Nov 18): Analysts see a glimmer of light at the end of the tunnel for APAC Realty, despite a disappointing 3Q for the real estate agency on the back of a slower-than-expected recovery in the residential property market.

APAC Realty, which operates the ERA brand, saw its earnings nearly halved to $3.5 million for 3Q19 ended September, from $6.5 million a year ago, as total revenue shrank 14.1% to $98.6 million during the quarter.

Analysts remain upbeat as Wilmar crushes 3Q results

SINGAPORE (Nov 14): Analysts are upbeat and bullish on Wilmar International after the agribusiness group posted a 10% y-o-y increase in 3Q19 earnings to US$447.1 million ($608 million).

3Q19 revenue came in 2.2% lower at US$11.2 billion from a year ago due to lower commodity prices.

Wilmar says the stronger bottomline was driven by better results in tropical oils and consumer products as well as the recognition of a gain from the disposal of the group’s discontinued operations in Brazil.

ST Engineering gets 4 'buys' as aerospace, order book continue to soar

SINGAPORE (Nov 12): Analysts are buoyant on ST Engineering, as the technology, defence and engineering conglomerate posted 3Q19 earnings in line with expectations on the back of record-high revenue.

For 3Q19 ended September, STE saw its revenue jump 27% to $2.07 billion – the highest year-on-year growth in over a decade.

The revenue surge was driven by Aerospace revenue, which soared 53% y-o-y to $1.1 billion on the consolidation of its recently acquired Middle River Aircraft Systems (MRAS), as well as revenue recognised from various end-of-programme reviews.

Analysts favour super-sized CapitaLand as 3Q operating PATMI jumps 18.8%

SINGAPORE (Nov 6): Analysts are keeping their “buy” calls on property giant CapitaLand, on the back of bullish sentiments following its recent merger with Ascendas-Singbridge (ASB) and robust capital recycling efforts.

“CapitaLand’s competitive advantage is its significant asset base and extensive market network, which has been further boosted following the completion of the Ascendas-Singbridge merger,” says OCBC Investment Research in a Nov 6 report.

The brokerage is maintaining its “buy” recommendation, and raising its fair value estimate by 9.4% to $4.42.

Analysts turn bullish on StarHub as potential catalysts could ease earnings pressures

SINGAPORE (Nov 6): Analysts from two research houses – DBS Group Research and CGS-CIMB Research – are upgrading StarHub to “buy”, from “hold” previously, following the telco’s 3Q results announcement.

The optimism comes on the back of views that StarHub’s earnings pressures have already been priced in, while its enterprise and wireless segments could provide potential catalysts for the counter.

Year to date, shares in StarHub had slid nearly 24% to close at $1.32 on Nov 5, before the release of its results.

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