While there are eight Singapore companies under our coverage with >70% revenue
exposure to China, we have not made any changes to our 2022 earnings estimates yet.
The downside risk involves the Chinese government clamping down harder on the
economy in furtherance of its zero-COVID strategy. Despite being the region’s best
performing index, the STI’s current valuations remain undemanding, trading at a 2022
PE and P/B of 13.5x and 1.1x, with the highest yield in the region at 4.1%.
UOBKH: Impact Of China’s Resurgent COVID-19 Situation – Ascott Trust, Capitaland Investment, Genting SP, Mapletree Ind, OCBC, Singtel, Sembcorp Ind, Thai Bev, Venture, Wilmar, Yangzijiang
