▌What’s on the Table…

HRnetGroup Limited (ADD, tp:SGD0.821) – Hiring season around the corner
Twin engines of flexible staffing and permanent placements are on track for
recovery; management is cautiously optimistic on the FY21F outlook. We raise
FY21F-23F permanent placement (GPM: c.100%) volume expectations by c.3-
12% on potential labour market recovery. Reiterate Add, with a higher TP of
S$0.82. HRNET had net cash of S$332m (zero debt) as at end-Dec 20 and a
3.9% FY21F dividend yield.

Keppel Corporation (ADD, tp:SGD6.40) – Kris-talised
Pursuant to KrisEnergy’s filing of a winding up petition, KEP will book a loss of
S$318m in respect of its exposures to KrisEnergy, based on recoverability. As
a guarantor via a bilateral contract with DBS Bank, KEP is also liable to pay on
demand the revolving credit facility of S$251m. The payment is likely to be
covered by asset recycling. We also estimate c.S$309m of gains to offset the loss.
Reiterate Add and TP of S$6.40. This could mark the last vestige of ‘legacy’
issue and remove the overhang on KEP as it has been plagued by KrisEnergy’s
weak performance.