SGX Market Update: Earnings to Look Forward to This Week

The Straits Times Index (STI) opened slightly down at 3,302.67 on Wednesday morning. At the time of writing, the STI was trading at 3,300.9 within a softer trading environment.

The index also ended lower on Tuesday, with the financial sector in the red and industrial equities in the green zone.

Analysts believe the market is highly observant of the progression of China’s recovery and its stocks’ performances.

With the ongoing earnings season, experts predict better performance from the SGX companies due to their safe, defensive, and dividend-oriented approach. Analysts also feel a broader level of growth is returning to SGX companies.

Upcoming Earnings

AEM Holdings Limited (SG:AWX)

Engineering products manufacturer AEM Holdings will announce its fourth-quarter results for 2022 on February 23. In the first three quarters of 2022, the company posted record growth in its revenues and earnings, driven by strong demand. The expected revenue for the full year 2022 is between S$820 million and S$850 million.

Overall, AWX stock has a Hold rating on TipRanks. The average target price of S$3.94 implies an upside potential of 19.03%.

CapitaLand Investment Limited (SG:9CI)

CapitaLand will release its 2022 annual results on Wednesday, February 23, before the market opens. It is a real estate investment management company and owns a diverse portfolio spread across 40 countries.

On TipRanks, the 9CI stock has a Moderate Buy rating based on one Buy recommendation from analyst Adrian Loh from UOB Kay Hian. He has a target price of S$4.13, suggesting an upside of 7.27%.

Venture Corporation Limited (SG:V03)

Venture Corp. provides manufacturing, design, research, and technology services to electronic companies globally. The company will report its full-year results for the year that ended on December 31, 2022, on February 24.

According to TipRanks’ consensus, V03 stock has a Strong Buy rating. The average target price is S$19.94, which is 9.5% higher than the current price.

Oversea-Chinese Banking Corporation (SG:O39)

Oversea-Chinese Banking Corporation or OCBC Bank is one of the oldest banks in Singapore.

The bank will report its Q4 and full-year results for 2022 on February 24, 2023. According to TipRanks, the consensus EPS forecast is S$0.38 per share, higher than the EPS of S$0.22 from the same quarter a year ago. Analysts are expecting another quarter of higher net interest margins for the banks in Singapore.

O39 stock has all positive recommendations on TipRanks with a Strong Buy rating. The target price is S$14.9, which has an upside potential of 14.2%.