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Singapore Is Relatively Cheap, but Only Moderately Attractive

#Singapore is relatively cheap, but only moderately attractive

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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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.