, Singapore

Which companies will be the hardest hit by China’s COVID-19 resurgence?

UOB Kay Hian said there is a total of eight that will be most affected.

Eight Singapore companies are at risk amidst a resurgence of COVID-19 in China, UOB Kay Hian said.

In a report, the analyst named China Sunsine, Jiutian Chemical, Sasseur REIT, Trans-China Automotive, Yangzijiang, Innotek, Dairy Farm, and Nanofilm as the companies which would likely see their "2022 profitability come under pressure should the country’s zero-COVID policy result in business stoppage or interruption.”

According to UOB Kay Hian, these companies derive over 70% of their revenue from China, whilst the first five also have 100% exposure to the country.

Despite the risk, the analyst has yet to change their earnings forecast for these companies, adding that the impact of the resurgence “at present would be mild.”

Meanwhile, the analyst said large-caps such as Ascott Trust, Capitaland Investment, Genting Singapore, Mapletree Industrial Trust, OCBC, Singtel, Sembcorp Industries, Thai Beverage, Venture Corp, Wilmar, and Yangzijiang all have minimal exposure to China, thus safe to invest in.

Looking ahead, UOB Kay Hian forecast a 10.7 year-on-year full-year earnings growth for the combined large-cap and REITs sectors, excluding the aviation sector.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!