UBS Top Picks 2017

Sluggish growth and EPS cuts, but investors should watch out for the cyclical pick-up! UBS Top Picks for 2017: AREIT, CapitaLand, DBS, OCBC, Genting Singapore, Keppel, Singtel

UBS Top Picks for 2017

Singtel

  • diversified exposure, esp in Indonesia, India
  • strong balance sheet. Dividends safe
  • Possible NLT sell-down.

DBS

  • Sobering after resolving its oil & gas NPLs.
  • Manageable credit costs going forward

OCBC

  • Preferred bank stock
  • More prudent in risk management.
  • Most proactive in NPL classification
  • Expects NPL pressure to ease.

CapitaLand

  • Execute on roadmap to 8-12% ROE
  • More Raffles City project complete in 2-3 years
  • De-risked its residential portfolio

Genting Singapore

  • worst of bad debt provisions over. Reversal expected
  • Lower capex
  • Japan casino liberalisation

Ascendas REIT

  • Potential to grow by M&A
  • Discount to S-REITs despite better growth

Keppel

  • Further provisions priced-in
  • No attention on its property unit.