Summary
Remain overweight equities over fixed income
Chart 1: Number of Bullish investors have risen lately. Most remained neutral however

Chart 2: Equity markets has seen lesser outflows in recent months, denoting shifting sentiments
China A & H Shares (4.0 Stars/4.5 Stars “Very Attractive”)
Charts 3: Valuations for China A-shares equities remain attractive…

Charts 4: …Valuations for China H-shares equities even more attractive

Chart 5: CSI 300 index price and EPS

|
CSI 300 Index (China A-shares) |
FY2018 |
FY2019 |
FY2020 |
FY2021 |
|
PE Ratio |
14.1 |
13.0 |
11.4 |
10.1 |
|
Expected Earnings Growth YoY |
8.0% |
8.9% |
13.8% |
12.4% |
|
Earnings Per Share (EPS) |
281 |
306 |
348 |
391 |
|
Projected Fair Price (Based on Fair PE Ratio of 13.0X) |
- |
- |
- |
5,087 |
|
Potential Upside from Today (%) |
- |
- |
- |
28% |
|
Source: Bloomberg, iFAST estimates. Data as of Dec 2019. |
||||
Chart 6: HSML 100 index price and EPS
|
HSML100 Index (China H-shares) |
FY2018 |
FY2019 |
FY2020 |
FY2021 |
|
PE Ratio (X) |
8.8 |
9.2 |
8.5 |
7.8 |
|
Expected Earnings Growth YoY |
7.1% |
4.8% |
7.3% |
9.9% |
|
Earnings Per Share (EPS) |
860 |
901 |
967 |
1063 |
|
Projected Fair Price |
- |
- |
- |
12,752 |
|
Potential Upside (%) from Today |
- |
- |
- |
54% |
Hong Kong (4.5 Stars “Very Attractive”)
Charts 7: Valuations trading near 1 standard deviation below historical mean
Chart 8: HSI index price and EPS
|
HSI Index (Hong Kong) |
FY2018 |
FY2019 |
FY2020 |
FY2021 |
|
PE Ratio |
10.8 |
10.5 |
10.0 |
9.2 |
|
Expected Earnings Growth YoY |
6.1% |
3.5% |
5.2% |
7.9% |
|
Earnings Per Share (EPS) |
2553 |
2643 |
2781 |
3000 |
|
Projected Fair Price (Based on Fair PE Ratio of 12.0X) |
- |
- |
- |
36,000 |
|
Potential Upside from Today (%) |
- |
- |
- |
30% |
|
Source: Bloomberg, iFAST estimates. Data as of Dec 2019. |
||||
S. Korea (4.5 Stars “Very Attractive”)
Chart 9: Earnings growth expected to rebound strongly in 2020

Chart 10: KOSPI index price and EPS
|
KOSPI Index (S. Korea) |
FY2018 |
FY2019 |
FY2020 |
FY2021 |
|
PE Ratio |
9.3 |
15.3 |
11.6 |
9.6 |
|
Expected Earnings Growth YoY |
-1.2% |
-39.6% |
31.4% |
21.0% |
|
Earnings Per Share (EPS) |
234 |
142 |
187 |
226 |
|
Projected Fair Price (Based on Fair PE Ratio of 12.5X) |
- |
- |
- |
2,821 |
|
Potential Upside from Today (%) |
- |
- |
- |
30% |
|
Source: Bloomberg, iFAST estimates. Data as of Dec 2019. |
||||
Taiwan (4.0 Stars “Very Attractive”)
Chart 11: Semiconductor sales a significant driver for TWSE Index's EPS growth
Chart 12: TWSE index price and EPS

|
TWSE Index (Taiwan) |
FY2018 |
FY2019 |
FY2020 |
FY2021 |
|
PE Ratio |
15.7 |
18.2 |
16.2 |
14.7 |
|
Expected Earnings Growth YoY |
7.4% |
-13.9% |
12.5% |
10.2% |
|
Earnings Per Share (EPS) |
760 |
654 |
736 |
812 |
|
Projected Fair Price (Based on expected PE Ratio of 18.0X) |
- |
- |
- |
14,609 |
|
Potential Upside from Today (%) |
- |
- |
- |
22% |
|
Source: Bloomberg, iFAST estimates. Data as of Dec 2019. |
||||
Singapore (4.0 Stars “Very Attractive”)
Chart 13: Manufacturing and export indicators bottomed and showed signs of reversal
Chart 14: Singapore index price and EPS
|
STI Index (Singapore) |
FY2018 |
FY2019 |
FY2020 |
FY2021 |
|
PE Ratio |
13.2 |
13.1 |
12.5 |
11.9 |
|
Expected Earnings Growth YoY |
12.1% |
0.7% |
4.4% |
4.9% |
|
Earnings Per Share (EPS) |
244 |
246 |
257 |
269 |
|
Projected Fair Price (Based on Fair PE Ratio of 15.0) |
- |
- |
- |
4,038 |
|
Potential Upside from Today (%) |
- |
- |
- |
26% |
|
Source: Bloomberg, iFAST estimates. Data as of Dec 2019. |
||||
Japan (3.5 Stars “Attractive”)
Chart 15: Share buybacks reached post-GFC high in 2018

Chart 16: Companies have been and are expected to pay out more dividend
Chart 17: NKY index price and EPS

|
NKY Index (Japan) |
FY2018 |
FY2019 |
FY2020 |
FY2021 |
|
PE Ratio |
17.3 |
18.4 |
17.2 |
15.7 |
|
Expected Earnings Growth YoY |
16.0% |
-5.9% |
7.3% |
9.1% |
|
Earnings Per Share (EPS) |
1386 |
1304 |
1399 |
1527 |
|
Projected Fair Price (Based on Fair PE Ratio of 18.0X) |
- |
- |
- |
27,488 |
|
Potential Upside from Today (%) |
- |
- |
- |
14% |
|
Source: Bloomberg, iFAST estimates. Data as of Dec 2019. |
||||
Indonesia (3.5 Stars “Attractive”)
Chart 18: Growth supported by consumption while exports have improved
Chart 19: JCI index price and EPS
|
JCI Index (Indonesia) |
FY2018 |
FY2019 |
FY2020 |
FY2021 |
|
PE Ratio |
16.7 |
16.2 |
14.5 |
12.6 |
|
Expected Earnings Growth YoY |
12.3% |
2.7% |
12.1% |
15.0% |
|
Earnings Per Share (EPS) |
372 |
382 |
429 |
493 |
|
Projected Fair Price (Based on Fair PE Ratio of 15.0X) |
- |
- |
- |
7,397 |
|
Potential Upside from Today (%) |
- |
- |
- |
19% |
|
Source: Bloomberg, iFAST estimates. Data as of Dec 2019. |
||||
Russia (3.5 Stars “Attractive”)
Chart 20: Russian equities boasts high dividend yield
Chart 21: RTS index price and EPS

|
RTS Index (Russia) |
FY2018 |
FY2019 |
FY2020 |
FY2021 |
|
PE Ratio |
7.2 |
6.9 |
6.5 |
6.1 |
|
Expected Earnings Growth YoY |
28.0% |
3.9% |
6.9% |
6.2% |
|
Earnings Per Share (EPS) |
209 |
217 |
232 |
247 |
|
Projected Fair Price (Based on Fair PE Ratio of 7.0X) |
- |
- |
- |
1,726 |
|
Potential Upside from Today (%) |
- |
- |
- |
15% |
|
Source: Bloomberg, iFAST estimates. Data as of Dec 2019. |
||||
|
Markets/ Products |
China A |
China H |
Hong Kong |
S. Korea |
Taiwan |
Singapore |
Japan |
Indonesia |
Russia |
|
Actively-Managed Funds |
|
JPMorgan Funds - Japan Equity A (dist) SGD |
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|
Passive ETFs |
- |
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