4 investment themes to navigate a growth-challenged 1H17

SINGAPORE (Jan 3): UOB Kay Hian is flagging growth headwinds and external risks in what it calls a growth-challenged year ahead, and therefore recommends positioning defensively on elevated volatility and an uncertain macro outlook.

Although the research house has forecast overall 2017 earnings per share (EPS) to grow 10.5% on year to be led by the plantation, aviation and telecommunication sectors, it maintains top-line will remain under pressure along with “stubbornly high” costs.

In a Tuesday report, UOB shares four investment themes that it believes could drive outperformance in 1H17. These are namely new economy beneficiaries (Keppel T&T, SingPost, Venture); scalable companies (Keppel T&T, Raffles Medical); earnings visibility and yield (Frasers Logistics Trust); as well as stock-specific catalysts (Duty Free International).

---

Related Stories

• Brokers’ Digest: CDL, PropNex, PLife REIT, KIT, SingPost, Grand Banks Yachts, Nio, Frencken, ST Engineering, UOB
• Prospects of better FY2025 earnings inspire new ideas for ThaiBev
• SingPost in 'exclusive' talks over divestment of Australia assets

---