Excerpts from CGS- CIMB report

Sector Preference and Country Top Picks
 With growth and recovery prospects being the key theme, Commodities and Telco are our new Overweight sectors.

Banks, Construction and Property are long-term winners for an economic recovery.

We also like Technology/Manufacturing on strong earnings outlook and the demand for IT-related infrastructure and life science equipment.

The recent successful listing and outperformance of Nanofilm Technologies (Not Rated) could draw more tech IPOs to Singapore, lifting the sector’s interest and valuations.

Capital Goods could see a good run from a recalibrated focus among the Temasek-linked companies as well as M&A hope.

On the flipside, we believe the recent run-up in Transport has priced in perfection and we do not think it is sensible given its +1 s.d. to mean valuations vis-à-vis weak earnings profile; downgrade to Neutral.

cimb picks2021

 We make some changes to our country top picks — we remove SIA and CAPL after the surge in recent months.

We add YZJ, driven by heightened order momentum for containerships, and CIT, as a proxy to robust residential sales in Singapore and as a laggard play.

If liquidity is ample, we think small caps could be in vogue in 2021F and add two new names to our list

HRNet, on strong demand for flexible staffing by corporates and government agencies as well as growth in North Asia (China), and

-- ISDN, which could outperform on super profits (+166% yoy) in FY20F from the demand for industrial automation motors, especially in China.

Full report here. 

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Counter NameLastChange
AEM Holdings3.230-0.040
Avi-Tech Electronics0.245-0.005
Best World1.700-0.020
Broadway Ind0.090-
China Sunsine0.395-0.005
Delfi Limited1.130-
Food Empire1.1400.050
Fortress Minerals0.310-
Geo Energy Res0.280-0.005
GSS Energy0.028-
Hong Leong Finance2.480-
Hongkong Land (USD)3.260-0.020
ISDN Holdings0.330-0.005
IX Biopharma0.0430.001
Jiutian Chemical0.024-0.001
KSH Holdings0.300-
Leader Env0.054-0.001
Medtecs Intl0.1530.001
Nordic Group0.400-
Oxley Holdings0.098-0.002
REX International0.162-0.004
Sinostar PEC0.120-0.005
Southern Alliance Mining0.670-
Straco Corp.0.475-
Sunpower Group0.240-
The Trendlines0.090-
Totm Technologies0.038-
Uni-Asia Group0.9200.015
Wilmar Intl3.560-0.010
Yangzijiang Shipbldg1.470-0.020

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