Apart from being a beneficiary of the economic recoveries in Singapore and China, Yeo likes the stock for its cash-generative ability, strong net cash balance sheet, attractive dividend yield of about 5%, undemanding valuation of around 11x forward P/E (at -1SD of its historical mean forward P/E) and continued share buyback in support of EPS.
RHB Group Research is keeping its “buy” call on HRnetGroup with an unchanged target price of 91 cent, as analyst Alfie Yeo expects the group to see growth led by economic recovery.
“We continue to be positive on HRnetGroup, ahead of anticipated economic recovery in Singapore and China,” says Yeo, adding that the research house’s economist has forecasted Singapore’s 2024 GDP growth to accelerate (1.5% growth in 2023, before accelerating to 3% in 2024) while maintaining strong GDP growth of 5% for China.
