Companies under DBS’s coverage saw positive revisions of 2.1% and 0.8% to FY2022 and FY2023 earnings respectively. The positive revisions were led by industrial heavyweights on favourable operating conditions, such as Singapore Airlines (SIA) on its reopening, higher prices and tariffs for Sembcorp Industries, while DFI Retail Group’s earnings was revised down amid challenges to its grocery retail business, say Yeo and Chua.
DBS Group Research analysts Yeo Kee Yan and Janice Chua believe that the 2QFY2022 performance of SGX-listed counters has “allayed” concerns of further lows.
In a report dated Aug 24, the analysts write that the 2QFY2022 results season “debunked immediate slowdown concerns”, reflecting Singapore’s resilience. Twenty one companies reported better-than-expected earnings compared to 13 that disappointed, while more than half came in line with expectations.
