SG Strategy

SG Strategy: UBS has SG strategy report. House note that SG economy forecast to grow 1-3% in 2012, 3Q11 GDP +6.1% YoY, Industrial output +24.4% YoY, CPI in Oct +0.4% MoM. NODX in Oct -16% YoY, and -5.9% MoM on a seasonally-adjusted basis. Below are house recommendations:

SG Banks - Stick with growth; loan growth momentum continues, DBS is top pick as its NIMs may have bottomed out, and as it is willing to grow its loan book.

SG Property Outlook - The drag from economic uncertainty is likely to persist and hurt growth. Prefer defensive sub-sectors like Retail and Industrial, key picks are CMT, FCT, AREIT, and MINT, cautious on developers but like UOL and GLP.

Industrials -
STE: maintain Buy, Valuations remain attractive;
SCI: maintain Buy, attractive valuation, strong utilities earnings;
SMM: Steady 3Q11 results, special dividend potential;
COSCO: margins remain questionable;

Telcos – ST: Buy, defensive stock for volatile times;
Starhub: remain Neutral, lack of catalysts.

Transportation – HPHT: attractive yield, defensive play;
Tiger Airways: still a fragile business.
Comfort Delgro: Overseas shines, CDG on hunt for more.
SATS: Q2 earnings satisfactory; earnings without Daniels.
SIA: 2Q profits dip; no surprise from low cost proposal.
NOL: Lower EPS on poor Q311.
SMRT: Tough ride for public transport operators.

Consumer, Commodities and others Spore Traders: Reiterate defensive.
Noble: expect fiscal stimulus and the potential spinoff to unlock value for the company.
Olam: demand remains defensive (maintain Buy and top pick).
Wilmar: looks fairly valued (maintain Neutral).

Others:
Genting Singapore: Q3 below expectations; cautious outlook
Venture Corporation: Recovery not in the near sight
OSIM International: Wooing Chinese consumers