SINGAPORE (Dec 20): DBS is recommending the transport-related sector for its defensive and resilient nature plus strong balance sheet to weather the continuing uncertainty.

DBS analysts Paul Yong and Suvro Sarkar noted that organic growth will be limited for the transport companies. For one, lower fuel costs are expected to translate into lower fares for ComfortDelgro and lower ticket prices for SIA Group.

On the other hand, these companies, funded by a strong balance sheet, could grow through acquisitions. SIA, SIA Engineering, China Aviation Oil and ComfortDelgro are in net cash positions, while ST Engineering and Hutchison Port Holdings Trust have low net gearing of 0.1 times and 0.4 times respectively.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook