SG Consumers: OSK DMG note that amidst weaker consumer confidence and lacklustre results, Singapore consumer counters have risen 12% YTD, beating the STI’s 5% gain. House expect earnings growth to ease to 7% in FY13, which may cap any further price upside.
FJ Benjamin underperformed its peers as its share price has retreated by 14% YTD. The stock is now trading at 1.1x forward P/B, near the bottom of its band since 2010 (3-year low and high: 1.0-1.9x P/E; 2009 crisis: 0.4x P/B). The coy saw profits slide 72% to $1.3m in 2QFY13 owing to softer timepiece sales due to fewer purchases by the Chinese in China and Hong Kong. Nonetheless, the sales decline in its North Asia market appears to have bottomed as management is starting to see a pick-up.
Just as undemanding in terms of valuation is OSIM (BUY, TP $2.22), which is trading at a 15x FY13 P/E. OSIM remains house Top Pick.
Singapore consumer related stocks are:
SPH
Olam
SuperGroup
Osim
Parkson
Sheng Siong
Food Empire
Eu Yan Sang
FJ Ben
HTL
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