Brokers' take

Bukit Sembawang | Buy Dec 13 close: S$5.93 Target price: S$8.25 Maybank Kim Eng, Dec 13

Bukit Sembawang is a concentrated proxy for Singapore's residential market, which we believe is at an inflection point after four years of price falls. We expect a cyclical earnings rebound in FY2019/2020E, reversing its earnings contractions of the past six years.

The stock is attractively priced at a 42 per cent discount to RNAV, larger than the 14 per cent trading discounts of its large cap peers. This is despite its prospects of stronger returns. We believe its market-leading dividend yields of 5.6 per cent can be sustained by a pristine balance sheet and improving earnings. While poor corporate access, low stock liquidity and the long time neede…