by winston » Tue Jun 26, 2018 9:59 am
Singapore Residential Sector: Cheap just got cheaper
Singapore developers have underperformed the STI YTD.
We retain our positive view on the outlook of Singapore developers, and seek to address some of the market’s concerns in this report.
We believe the divergence between Singapore developers’ share price performances and fundamentals presents buying opportunities.
While we ease our private sales transaction volume projection for 2018 to 10k-12k (previously 12k-15k) based on the current run-rate, this still implies a backend loaded year.
We also raise our Singapore residential price growth forecast to 8%-12% from 3%-8%.
Maintain OVERWEIGHT on the Singapore residential sector. We move UOL Group Limited [BUY, FV: S$10.63] to the front of our top picks list, followed by City Developments Limited [BUY, FV: S$15.78], and CapitaLand Limited [BUY, FV: S$4.26].
Source: OCBC
It's all about "how much you made when you were right" & "how little you lost when you were wrong"