Singapore 4Q20 Equity Strategy Outlook Questions

[Research Department]

Question: Why is the stock index (e.g STI) keep dropping when only so far U.S and Japan index are going up? What constitute to this trend for the last few years? Money printing?

Answer: A major reason for difference is performance is due to the tech stocks. E.g. Looking at the Dow Jones Index, banks such as JP Morgan and Goldman Sachs are down _% respectively this year. But tech stocks such as Microsoft are up _%,

[Research Department]

Replying to #36755

Question: Will Singtel fall below IPO price like starhub m1

Answer: We think weakness will remain for both Singtel and Starhub until the borders reopen. There will be a faster recovery for Starhub because Singtel will still be hurt by weakness in their Asutralian business.

• This reply was modified 3 years, 6 months ago by Research Department.

[Research Department]

Replying to #36757

Question: TPG is bleeding now. Are they a 5G player?

Answer: The were only two 5G licenses issued – SingTel and M1/Starhub (shared bid). TPG can still offer 5G but needs to tap on the other 3 telcos network. This also means there can be less aggressive competition because TPG less able to offer 5G services cheaper that the other three telcos.

[Research Department]

Replying to #36760

Question: Is 5G going to benefit Netlink or not?

Answer: The impact will not be material for Netlink. When 5G is rolled out there will be more fibre connection points to lampost or bust stops. However, on 1.8k of such connections now against 1.4mn residential home connections.

[Research Department]

Replying to #36762

Question: What’s the difference between Accumulate and Buy?

Answer: Accumulate referes to expected total returns of the stock between 5% to 20%  whereas Biy refer to expected returns of more than 20%. Total returns means current share price to our target price and expected dividends. EG, If share price of a stock is now S$1 and our target price is S$1.20 and another S$0.05 dividends. Total return expected is 25%.

[Research Department]

Replying to #36764

Question: do you see Netflix a big threat to Asian PayTV revenue?

Answer: The most popular channels for Asian PayTV are local channels. Top 20 channels are local.

[Research Department]

Replying to #36766

Question: Would Netlink be threatened by other media channels like Netflix, Disney+ etc

Answer: No impact for Netlink because the company provides the fibre (or internet) connection are not selling content. The impact will be more on Singtel and Starhub because customer may prefer fewer channels. Or even just view Netflix and Disney and cut their cable channel.

[Research Department]

Replying to #36768

Question: There are so many buy calls… Do you have any sell calls or counters to avoid?

Answer: You may refer to our coverage list here. 

[Research Department]

Replying to #36770

Question: What is the target price for Micro Mechanics, Netlink, PropMex and UG Healthcare?

Answer: You may refer to our coverage list here. 

[Research Department]

Replying to #36772

Question: For Valuetronics, why is this stock still so lagging ? Due to US-China trade war ? What news would be positive for Valuetronics ?

Answer: We have no coverage on Valuetronics but the company , we believe, is hurt from the trade war as 50% or more  of sales is from their China plant to U.S. With the huge tariffs, customers will either source other contract manufacturers or use Valuetronics new plants in Vietnam.

[Author]

Posts