Frencken, Lendlease top UOB Kay Hian’s stock picks

The firms outperformed the stock market by 0.8 percentage points in May 2022.

UOB Kay Hian dubbed the machine industry, Frencken Group, and real estate firm, Lendlease Reit, as “alpha picks” after both firms outperformed the Straits Times Index by 0.8 percentage points in May 2022.

It said the Frencken Group is “attractive” due to its diverse stream of revenue sources, which would make the company stand out in the wake of a volatile macro environment. 

As for Lendlease, UOB Kay Hian said it added the firm due to its organic growth following the acquisition of a new asset, Jem.

“Jem attracts shopper traffic of 22 million per year due to an attractive mix of anchor tenants, such as IKEA, FairPrice Xtra, Don Don Donki, H&M, and UNIQLO,” the analyst said.

UOB Kay Hian, however, said it took out telecommunications firm, Singtel, and postal services firm, Singpost.

“We have taken profit on Singtel as it has done well for us, up 5% since inception into our portfolio. Whilst we remain bullish on Singpost in the medium term, we have removed it as air freight rates have not shown signs of dropping and appear to remain elevated instead in the near term,” it explained.