As such, DBS has reduced its earnings projects and valuation peg to 11 times from 15 times previously on ex-cash earnings, which implies 16 times FY19F P/E.
SINGAPORE (May 14): DBS Vickers Securities is downgrading its call on HRnetGroup to “hold” from “buy” with a lower price target of 85 cents compared to $1.05 previously on expectations of a weaker Singapore jobs market, which is believed to drag on the group’s earnings growing forward.
The research house is now anticipating FY19F core earnings to decline due to lower productive headcount (PHC), weaker jobs outlook for professional placement, and a loss of demand from fintech companies in Singapore.
