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3 BIG Spore banks ....:))

DBS Group Research analyst Lim Rui Wen is positive on Oversea-Chinese Banking Corporation (OCBC) as she estimates the bank&rsquo s share price to see support moving forward.

  On this, Lim has upgraded her recommendation on OCBC to &ldquo buy&rdquo from &ldquo hold&rdquo with a higher target price of $11 from $9.50 previously.

  Since OCBC&rsquo s share price has gained more than 10% from early November when it was trading near trough valuations, Lim believes that there is further room for OCBC&rsquo s share price to grow amid expectations of a gradual pick-up in long-end yields, as the bank is seen as a proxy to economic recovery.

  Lim also sees several upsides to the bank including its strong non-performing asset (NPA) coverage of 109% (which is higher than the 101% in 2QFY2020) and ongoing provisioning of $1.8 billion.

  She has also noted that the bank&rsquo s strength in non-interest income franchise, along with an improved outlook for Great Eastern Holdings, should continue to provide some income support for FY2021F despite the potential net interest margin (NIM) headwinds going into the 4QFY2020.

 

  To this end, Lim has also upped her net profit estimates to $3.27 billion for FY2020F and $4.00 billion for FY2021F on better contributions from non-interest income.

  Further upsides to the stock include the fact that some negatives have already been priced in.

  &ldquo We believe the market has priced in lower net interest income impact into FY21F. As we expect some asset quality deterioration into 2H20 and 1H21, especially when the various moratoriums and reliefs expire, we believe the upside is capped at around 1x price-to-book (P/BV),&rdquo she says.

  While she sees the bank&rsquo s sustained business momentum and the macroeconomic recovery as catalysts to OCBC&rsquo s share price, Lim says she remains &ldquo conservative&rdquo over its income outlook into FY2021F-2022F, as management is &ldquo likely to continue adopting strict cost discipline to manage its bottom line&rdquo .

  As at 12.04pm, shares in OCBC are trading 11 cents higher or 1.1% up at $10.22 0.9 times FY2020 P/B with a dividend yield of 3.4%.

 

Now as STI is closed the 2900 ....on its way to 3000 ( for Christmas lol )
Our 3 banks Dbs/UOB and OCBC  is closing in on 26.....24 and 10.50 .....
Interesting combination for STI 
Dyodd
Happy investing. 

 

 

 

 

 

 

 

FATABA      ( Date: 24-Nov-2020 16:33) Posted: Our 3 banks are leading STI to 2900/3000 ......go go  Pls note UOB and OCBC are still below its book value LOL  Dyodd Starship      ( Date: 24-Nov-2020 16:30) Posted: --- Post Removed by User ---

 

john_ric      ( Date: 23-Nov-2020 18:39) Posted: Ocbc > 10 dB's. > 25 Dbs > 23. All surging like mad.

 

Our 3 banks are leading STI to 2900/3000 ......go go 
Pls note UOB and OCBC are still below its book value LOL 
Dyodd

Starship      ( Date: 24-Nov-2020 16:30) Posted: --- Post Removed by User ---

 

In power energy bz I guess its a different issue .....and further there is a major shortage of clean good power supply in India
( esp much need in IT industry) ....which is why India govn is hungry for this and wish to control 
After listing of SEIL , I wld not be surprise INdia companies will buy in and try control 
Dyodd

uiop1223      ( Date: 24-Nov-2020 15:52) Posted: Its positive for DBS. I think india mkt harder to make money. Look at losses incurred by singtel

 

Its positive for DBS. I think india mkt harder to make money. Look at losses incurred by singtel

 

 

EPS and hence P/E ratio and roe are critical for assessing performance of banks.

uiop1223      ( Date: 23-Nov-2020 18:05) Posted: PB ratio not meaningful to me. It lagging indicator EPS is leading indicator. When earnings suffer over a prolong period, then mtmg impair the asset which is markdown of asset If asset is generating more returns, it will also reflect in trending of EPS where EPS will increase QOQ So i dont understand why some people say, this stk that stk undervalued becoz trading under book value.. if a stk been trading below book value, theres sure reason why..

 

Ocbc > 10
dB's. > 25
Dbs > 23.

All surging like mad.

 

PB ratio not meaningful to me. It lagging indicator

EPS is leading indicator. When earnings suffer over a prolong period, then mtmg impair the asset which is markdown of asset

If asset is generating more returns, it will also reflect in trending of EPS where EPS will increase QOQ

So i dont understand why some people say, this stk that stk undervalued becoz trading under book value.. if a stk been trading below book value, theres sure reason why..

 

Normal trade to close my long position and take profits. I shared earlier my TP for DBS is $25

WhereI      ( Date: 23-Nov-2020 16:56) Posted: Brother you shorting or closing out your position? uiop1223      ( Date: 23-Nov-2020 16:53) Posted: Sold off 5lots of DBS at $25.1

 

Brother you shorting or closing out your position?

uiop1223      ( Date: 23-Nov-2020 16:53) Posted: Sold off 5lots of DBS at $25.1

 

Sold off 5lots of DBS at $25.1