Top 3 Singapore stocks to watch in December 2020

Below are the top three recommended Singapore-listed equities for the month of December 2020, based on the latest ratings, price targets and research provided by equity analysts.

Yangzijiang Shipbuilding (SGX: BS6)

Latest share price (03 December): S$0.92

12-month target price (average): S$1.224

Estimated upside from latest price: 33%

Chinese shipbuilder Yangzijiang Shipbuilding currently has an average 12-month share target price of S$1.224 from brokers polled by Refinitiv.

The price target represents an upside of 33% from the last traded price of S$0.92 as of Thursday (03 December 2020).

DBS added the vessel maker back to its list of ‘equity picks’ on 01 December 2020 at a suggested buy-in rate of S$0.88 a share.

Analysts wrote that the stock is trading below an ‘unjustifiably low’ price-to-book ratio of 0.55 times and net cash of S$1.13 per share, despite superior financial metrics.

These included an 8% return on equity, as well as sustainable dividends per share and dividend yield rate of over S$0.40 and 4.5% respectively.

Thai Beverage (SGX: Y92)

Latest share price (03 December): S$0.715

12-month target price (average): S$0.791

Estimated upside from latest price: 10.63%

Brokers polled by Refinitiv have priced beverage manufacturer Thai Beverage (ThaiBev) at an average target of S$0.791 - an estimated 10.6% upside from its last traded price of S$0.715.

CIMB analysts named the stock among their top picks on 30 November, giving it a 12-month target price of S$0.87 a share (previous: S$0.70) and ‘add’ rating.

The analysts wrote that ThaiBev could potentially benefit from recent down-trading trends in Thailand as the company has a 90% market share in the Thai spirits space.

They also see the Chang Beer maker’s FY2021 sales being boosted by the Thai government’s stimulus packages.

Singapore Airlines (SGX: C6L)

Latest share price (03 December): S$4.33

12-month target price (average): S$0.791

Estimated upside from latest price: 10.63%

Another stock to watch is Singapore Airlines (SIA), which has been one of the biggest gainers in recent weeks.

SIA has an average 12-month share target price of S$3.871 based on the latest Refinitiv poll data.

The stock is also among CIMB’s latest top pick entries, with analysts upgrading it to an ‘add’ rating from ‘hold’ previously.

The analysts believe that the airline’s ‘downside surprises are capped, as its aircraft assets have already been impaired and its capital raising completed’.

Earlier last month (November 2020), UOB analysts maintained a ‘buy’ call and a target price of S$3.75 on SIA.

They wrote that they are ‘optimistic’ of a recovery in the group’s cargo traffic and yields with a delivery of Covid-19 vaccines just around the corner.

Are you bullish or bearish on these 3 Singapore stocks?

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