Four Pillars of GDP: Driven by the private sector
Singapore has moderate GDP growth, driven mainly by private investments and private consumption. Net export was a drag on GDP growth in the past four quarters.
PE and growth for Singapore look attractive relative to ASEAN
Singapore’s 2018CE* 13.9x PE is in line with Asia ex Japan and below ASEAN. EPS growth is in line with Asia ex Japan for 2018CE* but above ASEAN. Nice dividend yield, only Taiwan has higher in Asia.
A. Stotz Four Elements: Singapore’s rank relative to Asia
Overall, Singapore appears moderately attractive in Asia considering all our four elements: Fundamentals, Valuation, Momentum, and Risk.
Fundamentals: Poor ROE, only Hong Kong has lower ROE in Asia.
Valuation: Cheap on PB and second highest dividend yield in Asia.
Momentum: Decent price momentum and earnings growth in line with Asia.
Risk: Moderate risk in Singapore.
Massive price return in Info Tech, Telecom still challenged
Top 3 largest sectors: Industrials: 26% of the market; Financials: 24%; Real Estate: 22%.
Best sector & stock: Information Technology: +40.6% & Hi-P International Ltd: +49.8%.
Worst sector & stock: Telecom: -7.6% & StarHub Ltd: -13.6%.
*CE is consensus estimates.
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