11/01/2016 wired weekly - dbs.com.sg filecentrepoint ltd , japfa magic sheng siong st engineering,...

11/01/2016

11 January 2016

Singapore Traders Spectrum

Wired Weekly Refer to important disclosures at the end of this report

Straits Times Index FTSE Small Cap Index

STI and 12-mth forward PE Brent Crude Oil

Source: Datastream, DBS Bank FTSE Indices 5-Day Performance

Source: Bloomberg Finance L.P.

360

380

400

420

440

460

480

500

520

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16

FTSE Small Cap Index

2,600

2,700

2,800

2,900

3,000

3,100

3,200

3,300

3,400

3,500

3,600


ST Index

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Jan-07 Jan-09 Jan-11 Jan-13 Jan-15

+2sd@ 16.71x

Avg@ 13.74x

+1sd@ 15.25x

-1sd@ 12.2x

3035

4045

50

5560

65

7075


Brent Crude OilUS$/barrel

Index @ 1 Wk % YT D %

F TSE Sectoral Indices 31-Dec-15 Chg Chg

STI 2882.73 0.2 -14.3

Mid Cap 667.53 -0.6 -10.8

Small Cap 403.51 -0.1 -18.0

All Share 694.98 0.3 -13.7

China 208.96 0.6 -5.8

Real Estate 701.61 0.4 -7.2

Real Estate & Dev 720.96 0.7 -3.4

Real Estate Inv Trust 695.93 0.1 -10.7

Oil & Gas 381.6 -1.6 -33.9

Basic Materials 107.8 -2.1 -14.1

Industrials 666.32 0.6 -17.5

Consumer Goods 429.93 0.2 -12.3

Health Care 1471.12 1.2 27.2

Consumer Serv ice 773.01 0.6 -7.8

Telecommunication 954.39 0.5 -6.9

Utilities 417.87 0.5 -11.8

Financials 771.65 0.3 -12.8

Technology 316.72 0.4 -23.0

Yeo Kee Yan (65) 6682 3706 [email protected] www.dbsvickers.com

sa: YM

KEY POINTS Accumulate around STI 2700 level. Initial upside to

2900 in weeks post base building, 3000 beyond that – banks and 2016 stock picks

OCBC – Accumulate at $8.25 for an initial trade up to $8.85, $9.20 on the subsequent move

Wired Weekly

The fall was precipitous but last week’s tumble did not come as a surprise. We’d warned that the Capricorn Rally will fail and preferred a decline in the STI towards 2650-2700 before adopting a more positive accumulate stance. It’s nearly there now.

We maintain our view that STI 2650-2700 presents a good opportunity to accumulate stocks. The uncertainties from China should subside in the short term as the RMB stabilises, substantial shareholder sales are curbed and the circuit breaker system suspended. Furthermore, at 2700, STI’s PE valuation is considered attractive at close to 10.7x (-2SD) FY16F PE, given the mid-single-digit EPS growth of 5.9%.

Technically, once the STI builds a base around the 2700 level, we expect an initial rise back towards 2900 in the weeks ahead, that coincides with a major 23.6% upward retracement level. Beyond this, the 38.2% retracement level is around 3000.

Look to accumulate banks that are index heavyweights that should lift the STI on the rebound. For OCBC, we believe any further near-term downside is limited around the $8.20 level. Post base building, we see an initial rise to $8.85 that coincides with a 23.6% upward retracement level. Beyond this, the 38.2% retracement is at $9.20.

Investors can also position into our 2016 stock picks that are Capitaland, City Developments, Ezion, Frasers Centrepoint Ltd, Japfa, MAGIC, Sheng Siong, ST Engineering, Thai Beverage and Venture Corp.

On the RMB - Our technical view back in August last year for the USDCNY to pull back from 6.45 down to 6.35, before resuming its rise to 6.55 has been fulfilled. Going forward, a short-term pullback from 6.59 towards the 6.48 support is possible but our long-term view of 6.85 remains intact.

The implication is that while calm should return to currency and equity markets in the short term as the USDCNY pauses for a breather, the uncertainty of future volatility as a result of RMB weakness remains.


Wired Weekly

Singapore Market Summary

A loud “THUD” can be heard as Singapore equities greeted the New Year. It was troubles from China. The decline in the RMB, concerns about the lifting of a ban on substantial shareholders’ sale and the “trigger happy” circuit breaker system combined to deal a deadly 1-2-3 knockout blow. Trading for Chinese equities was halted twice last week after the Shanghai Composite fell more than 7% in a day. The pessimism reverberated throughout the rest of Asia.

The benchmark STI tumbled 131pts, led by banks, SingTel and Keppel Corp. The start-of-the-year slump is in line with our view that the traditional Capricorn Rally will not materialise this time and STI risks a decline towards the 2650-2700 level over the Jan-Feb period that presents a good opportunity to accumulate. This view is in the process of panning out.

China uncertainties subside short term

We see short-term stability returning, at least for now, as the Chinese authorities address the issues that rocked the financial markets last week:

1. RMB stabilises – The PBOC started to intervene heavily against the dollar offshore to push back currency speculators towards the end of last week. On Friday, it set the daily fixing of the RMB 0.02% higher than Thursday’s reference rate, which is a departure from the accumulative 1.42% cut over the previous nine sessions.

2. Curb substantial shareholders’ sale – The China Securities Regulatory Commission has ruled that substantial shareholders that hold 5% or more of shares in listed

companies will not be allowed to sell more than 1% of total shares outstanding within the next three months.

3. Circuit breaker system suspended – On Friday, the Chinese authorities suspended the new stock market circuit breaker introduced only on Monday. The system failed to reduce market volatility and is even blamed for backfiring.

Looking to accumulate around STI 2700

Last week’s volatility resulted in the STI falling to as low as 2698 before ending the week at 2750. At the low last week, the STI traded at close to 10.7x (-2SD) FY16F PE, which is attractive considering the 2016 mid-single-digit EPS growth of 5.9%.

We advocate an accumulative stance around STI at 2700 in the short term. We maintain our view that STI at 2650-2700 presents a good opportunity to accumulate stocks as uncertainties from China subsides in the short term and market PE valuation falls to an attractive level.

We observed that historically, the STI performs positively during the period from mid-March till end-April because investors position ahead of large-cap stocks going ex-dividend over the April-May period. From a tactical perspective, the current weakness opens the opportunity to position ahead of this anticipated strength.

Technically, once the STI builds a base around the 2700 level, we expect an initial rise back towards 2900 in the weeks ahead that coincides with a major 23.6% upward retracement level. Beyond this, the 38.2% retracement level is around 3000.

Straits Times Index (Daily)

Source: DBS Bank

What to accumulate

Oversold index heavyweights – Banks and SingTel accounted for 50% of the STI’s 131-pt decline last week. Likewise, a rebound in the STI should be led by these stocks.

For OCBC, we believe any further near-term downside is limited around the $8.20 level. Post base building, we see an

initial rise to $8.85 that coincides with a 23.6% upward retracement level. Beyond this, the 38.2% retracement is at $9.20.

2016 stock picks – Our stock picks are Capitaland, City Developments, Ezion, Frasers Centrepoint Ltd, Japfa, MAGIC, Sheng Siong, ST Engineering, Thai Beverage and Venture Corp.


Wired Weekly

2016 stock picks

Source: DBS Bank

USDCNY technical view - 6.55 objective met, a pause but long-term 6.85 intact

The sharp decline in the RMB came after the Chinese central bank cut its RMB reference rate. The year is still young but the RMB has fallen nearly 4.5% against the USD. The USDCNY currently trades at about 6.59. The move upset financial markets and triggered worries that the slowdown in the Chinese economy is worse than what official data suggested.

The volatility in both equity and currency markets is reminiscent of August last year when Asian equity markets tumbled after the PBOC devalued the RMB in an unexpected move.

Our technical view for the USDCNY back in August last year was to expect a short-term pullback in the currency pair from 6.45 down to 6.35, before resuming its rise to 6.55. This view has been fulfilled.

USDCNY: Daily

Source: DBS Bank

The current rise in the USDCNY to about 6.59 coincides with a major 23.6% upward retracement level. While another pause is possible at this level, we lift technical support higher to 6.48.

We keep our long-term technical view for the USDCNY at 6.85, which coincides with a major 38.2% upward retracement.

CompanyPrice 15

Dec 2015Target Price

Target Return

PER 15 (x)

PER 16 (x )

PER 17 (x )

EPS Growth 16 (%)

EPS Growth 17 (%)

Div Y ield

16 (%)

Net Debt / Equit y 16 (%)

P/BV 15 (x )

Comment s

CapitaLand 3.260 3.73 14% 19.4 18.2 15.1 6.6 21.0 2.5 0.6 0.8Focus on growing commercial portfolio & coupled with opportunistic asset recycling of mature assets into its listed REITs/funds present earnings upside

City Dev elopment 7.540 10.26 36% 11.8 11.1 10.7 6.0 4.2 1.7 0.3 0.8Attractive valuations with stock trading below GFC low. South Beach development a top-line driver.

Ezion Holdings 0.595 1.00 69% 5.5 3.2 2.8 74.1 13.6 0.2 0.8 0.5

Top O&G pick. Re-rating catalysts from earnings recovery with the resumption of service rigs in 1H16, delivery of newbuild liftboats, customer base di ifi i

F rasers Cent repoint Lt 1.670 2.05 23% 10.0 8.1 7.8 23.6 4.1 5.1 0.8 0.7Strong income v isibility from locked-in residential sales, strong earnings visibility .

J apfa Ltd 0.485 0.90 86% 13.6 7.7 4.9 76.4 57.7 - 0.6 0.8Better 3Q15 EBITDA expected. J apfa’s 3Q15 earnings should show a sequential improvement, given higher feed prices and relatively resilient broiler and DOC prices

MGCCT 0.915 1.11 22% 17.2 15.2 14.9 13.0 1.8 8.5 0.4 0.8Concerns over the slowdown in the HK retail market are overplayed near term given the delivery of a 12.6% y-o-y increase in 2Q16 DPU to 1.808Scts

Sheng Siong Group 0.835 1.01 21% 22.4 20.6 20.5 8.6 0.5 4.4 cash 5.2

On track towards its 50-store target. Margin expansion trend. One of the most well-run grocery retailers in ASEAN, leading regional peers in profitability , cashflow generation and working capital management. Dividend attractive at 4.3%.

ST Engineering 2.960 3.60 22% 17.4 17.2 16.9 0.9 1.6 5.1 cash 4.2

Electronics div ision to capitalise on the SG Smart Nation with projects worth more than S$1bn in the near future. Recent focus on space-related technology and robotics hold promise as longer-term growth drivers.

Thai Bev erage Public 0.685 0.82 20% 16.5 17.3 16.1 -4.9 7.5 3.8 0.3 3.9

Advantage over its peers given its dominant position as the leading spirits player in Thailand, prov iding it with ample firepower and serve as a bastion for the company while it invests in new avenues of growth.

V enture Corporat ion 8.330 9.00 8% 14.8 13.2 12.3 11.8 6.9 6.0 cash 1.2

Consensus FY16F earnings have room to rise further. Street forecasts not fully factored in impact of 15% decline in SGD/MYR over the last year. Every 2% decline in MYR would have a 1.5% positive impact on Venture’s profits.


Wired Weekly

The implication is that while calm should return to currency and equity markets in the short term as the USDCNY pauses

for a breather, the uncertainty of future volatility as a result of RMB weakness remains.

USDCNY (monthly)

Source: DBS Research


Wired Weekly

Top large and small / mid cap picks

Source: DBS Bank

Major research reports released last week

TOP LARGE CAP PICKSCompany Recom Pric e

Ta rge t Pric e

Ups ide Cata lys t

Capitaland BUY 3.350 3.73 11% 1) Main business units delivering steady increases in performance2) Asset recycling of mature assets into REITs/Funds3) Growing recurring income base as retail malls in China stabilise

ST Engineering BUY 3.010 3.60 20% 1) Outlook remains healthy.2)Targeted investments provide potential upside in medium term.3) M&A potential remains untapped.

TOP SMALL / MID CAP PICKSCompany Recom Pric e

Ta rge t Pric e

Ups ide Cata lys t

Mapletree Greater China Commercial Trust

BUY 0.915 1.11 22% 1) V isible organic growth2) Portfolio of quality assets

Venture Corporation BUY 8.200 9.00 10% 1) Beneficiary of the strong US dollar and weak ringgit.2) Strong balance sheet and net cash position to support div idend payout of 50Scts, with a y ield of c.6%.

Company Recommendation Target Price ($) Key Points

ASEAN Strategy - - 1) Uncertainty over the pace of interest rate normalisation and economic recovery will keep volatility high in 1Q162) Upside risk for the region as major turning points could turn favourable; current valuations are pointing to better returns 12-month ahead3) US lift-off and China slowdown generally priced in 4) Our near-term outlook favours Malaysia from a defensive standpoint; while we watch for inflexion points in Indonesia and Philippines to turn more positive on a 12M view. Singapore is Neutral as SGD performance may be better than expected. We are less positive on Thailand as Banks and Energy sectors are under pressure

Singapore Property & REITs

- - 1) Singapore property market remains in correction; downside risk for cyclical sub-sectors2) Developer top picks: CAPL, CDL and FCL as valuations are too cheap to ignore3) S-REIT top picks: A-REIT, FCT, MAGIC and CRCT for stable growth amidst attractive yields

mm2 BUY S$1.05 1) Riding on growing demand and support for local production; gaining traction overseas2) High margins business model; new revenue streams to strengthen competitive edge and build recurring income base3) Spreading its wings in China, one of the world’s most lucrative movie markets to support growth4) Initiate with BUY, S$1.05 TP

CSE Global HOLD (Downgrade from BUY)

S$0.49 (Prev S$0.57)

1) Trim FY15F/16F earnings by 7%/15% due to slowdown in large greenfield projects2) With healthy net cash position, absolute dividends are likely to be maintained, implying over 6% yield3) Downgrade to HOLD for limited upside potential with our new TP at S$0.49. Dividend yield of 6% to support the share price

Riverstone Holdings BUY S$2.83 (Prev S$2.49)

More room to grow

Noble Group HOLD S$0.42 (Prev S$0.49)

Confidence Shaken


Wired Weekly

Shanghai Composite Index Hang Seng Index Taiwan Index

Nikkei Index Dow Jones Industrials NASDAQ Index

USD/SGD USD/JPY Euro/USD

USD/RMB SGD/RMB AUD/SGD

Source: Datastream, DBS Bank

12 mth: -7.4% YTD: -11.7% 12 mth: -14.1% YTD: -7.2% 12 mth: -13.5% YTD: -5.8%

1 mth: -9.9% 1 Wk: -11.7% 1 mth: -7.2% 1 Wk: -7.2% 1 mth: -5.9% 1 Wk: -5.8%

1,900

2,500

3,100

3,700

4,300

4,900

5,500


Shanghai Comp Index

19,000

21,000

23,000

25,000

27,000

29,000


Hang Seng Index

7,200

7,600

8,000

8,400

8,800

9,200

9,600

10,000

10,400


Taiwan Index

12 mth: 5.2% YTD: -6.7% 12 mth: -6.1% YTD: -5.2% 12 mth: 0.8% YTD: -6.4%

1 mth: -8.9% 1 Wk: -6.7% 1 mth: -6.0% 1 Wk: -5.2% 1 mth: -8.0% 1 Wk: -6.4%

15,000

16,000

17,000

18,000

19,000

20,000

21,000

22,000


Nikkei 225 Index

15,000

15,500

16,000

16,500

17,000

17,500

18,000

18,500

19,000


Dow Jones

4,200

4,400

4,600

4,800

5,000

5,200

5,400


Nasdaq

12 mth: 7.1% YTD: 1.1% 12 mth: -1.3% YTD: -2.2% 12 mth: -8.2% YTD: -0.3%

1 mth: 1.8% 1 Wk: 1.1% 1 mth: -4.3% 1 Wk: -2.2% 1 mth: -0.3% 1 Wk: -0.3%

1.25

1.30

1.35

1.40

1.45


usd/SGD

114

116

118

120

122

124

126

128


usd/JPY

1.001.021.041.061.081.101.121.141.161.181.20


Euro/USD

12 mth: 6.1% YTD: 1.5% 12 mth: -1.1% YTD: 0.0% 12 mth: -6.2% YTD: -2.2%

1 mth: 2.7% 1 Wk: 1.5% 1 mth: 1.1% 1 Wk: 0.0% 1 mth: -0.8% 1 Wk: -2.2%

6.10

6.20

6.30

6.40

6.50

6.60

6.70


usd/RMB

4.40

4.45

4.50

4.55

4.60

4.65

4.70

4.75


sgd/RMB

0.95

0.97

0.99

1.01

1.03

1.05

1.07

1.09

1.11


A$/SGD


Wired Weekly

Baltic Dry Index Volatility Index Fed Funds Rate

Brent Crude Oil Palm Oil Soya Oil

Aluminium Tin Steel

Copper Nickel Gold

Source: Datastream, DBS Bank

12 mth: -40.2% YTD: -6.9%

1 mth: -19.2% 1 Wk: -6.9%

400

600

800

1,000

1,200

1,400


Baltic Dry Index

8

12

16

20

24

28

32

36

40

44


Volatility Index

0.00

0.10

0.20

0.30

0.40

0.50

0.60


Fed Funds Rate

12 mth: -31.9% YTD: -4.1% 12 mth: -21.9% YTD: -2.7% 12 mth: -14.9% YTD: -4.0%

1 mth: -15.5% 1 Wk: -4.1% 1 mth: 1.0% 1 Wk: -2.7% 1 mth: -5.3% 1 Wk: -4.0%

30

35

40

4550

55

60

65

7075


Brent Crude OilUS$/barrel

400

450

500

550

600

650

700


Palm OilUS$/ton

24

26

28

30

32

34

36


Soya OilUS$/Ib

12 mth: -9.9% YTD: 0.6% 12 mth: -29.8% YTD: -5.3% 12 mth: -24.7% YTD: 3.5%

1 mth: 2.6% 1 Wk: 0.6% 1 mth: -3.9% 1 Wk: -5.3% 1 mth: 3.5% 1 Wk: 3.5%

1,500

1,600

1,700

1,800

1,900


AluminiumUS$/MT

13,000

15,000

17,000

19,000

21,000


TinUS$/MT

1,400

1,600

1,800

2,000

2,200

2,400

2,600


Steel (rebar)RMB/MT

12 mth: -25.3% YTD: -1.8% 12 mth: -44.6% YTD: -2.4% 12 mth: -9.1% YTD: 3.9%

1 mth: 0.6% 1 Wk: -1.8% 1 mth: -1.0% 1 Wk: -2.4% 1 mth: 2.8% 1 Wk: 3.9%

4,000

4,500

5,000

5,500

6,000

6,500

7,000


CopperUS$/MT

6,000

8,000

10,000

12,000

14,000

16,000


NickelUS$/MT

1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,350


GoldUS$/Ounce


Wired Weekly

Straits Times Index


Last PriceLast Day

V olA v g V ol for

the WeekRel ST I MT D

Rel ST I QTD

Rel ST I YT D Weight

A ctual Mk t Cap

S/No. B'berg Code Stock Name Crncy 8- J an-16 (000 Shrs) (000 Shrs) (%) (%) (%) (%) (S$m)1 DBS SP DBS SGD 15.38 4,108 6,392 (4) (4) (4) 12.6 38,4672 OCBC SP OCBC Bk SGD 8.22 4,767 7,291 12 12 12 12.3 33,8233 ST SP SingTel SGD 3.50 8,778 31,653 0 0 0 11.8 55,8034 UOB SP UOB SGD 18.16 1,170 3,127 (4) (4) (4) 10.1 29,1885 HKL SP HKLand US$ USD 6.47 610 2,573 (3) (3) (3) 5.0 21,9696 KEP SP Keppel Corp SGD 5.55 6,087 9,760 (9) (9) (9) 3.6 10,0527 CAPL SP Capitaland SGD 3.09 12,422 15,628 (4) (4) (4) 3.6 13,1268 THBEV SP Thai Beverage PCL SGD 0.67 3,824 8,140 2 2 2 3.0 16,8249 CD SP ComfortDelGro SGD 2.93 2,783 5,777 (2) (2) (2) 2.8 6,30010 SGX SP SGX SGD 7.25 710 2,086 (4) (4) (4) 2.7 7,76911 SPH SP SPH SGD 3.69 3,050 4,821 (1) (1) (1) 2.7 5,89412 GLP SP Global Logistics Properties SGD 1.97 10,839 19,356 (1) (1) (1) 2.7 9,32113 WIL SP Wilmar SGD 2.76 6,230 9,298 1 1 1 2.7 17,44314 SIA SP SIA SGD 10.94 593 1,572 1 1 1 2.5 12,72815 CT SP CapitaMall SGD 1.90 2,793 5,732 6 6 6 2.3 6,71116 AREIT SP A-REIT SGD 2.20 5,794 9,257 3 3 3 2.1 5,71617 STE SP ST Engg SGD 2.86 1,357 2,996 1 1 1 2.0 8,86818 CIT SP City Developments SGD 7.48 834 2,476 (0) (0) (0) 2.0 6,80219 GENS SP Genting SP SGD 0.71 6,381 28,275 0 0 0 2.0 8,52120 HPHT SP HPHT (US$) USD 0.51 7,143 13,357 (9) (9) (9) 1.7 6,34921 JCNC SP Jardine C&C SGD 32.79 98 329 2 2 2 1.7 12,96022 UOL SP UOL Group SGD 5.68 1,468 1,124 (3) (3) (3) 1.2 4,52323 SATS SP SATS SGD 3.77 1,246 1,871 5 5 5 1.1 4,19024 SCI SP Semb Corp SGD 2.66 4,605 7,046 (6) (6) (6) 1.1 4,74925 GGR SP GoldenAgr SGD 0.36 18,277 20,825 13 13 13 1.0 4,52126 YZJSGD SP Yangzijiang SGD 1.02 6,561 10,347 2 2 2 1.0 3,90927 STH SP StarHub SGD 3.52 474 1,614 (0) (0) (0) 1.0 6,08228 NOBL SP Noble Grp SGD 0.33 29,345 84,408 (4) (4) (4) 0.7 2,12429 SMM SP SembMar SGD 1.56 1,777 4,509 2 2 2 0.6 3,25830 SIE SP SIA Engg SGD 3.57 18 197 7 7 7 0.4 4,005


Wired Weekly

Surce: Bloomberg Finance L.P.

At A Glance Currencies

Other Important Indicators

Important Dates (Singapore)

Announced Dividends and Capital Issues

Upcoming IPOs

None

Recent IPO Trading

Last Close

Pts chg

% Chg 1 wk

SG$/US$ 1.44 0.0 2.6

Yen/US$ 116.96 (3.4) (2.9)

US$/Euro 0.91 0.0 0.0

AUS$/US$ 1.44 0.1 4.5

Pound/US$ 1.45 (0.0) (2.2)

Last Close

Pts chg 1wk

% Chg 1 wk

Gold 1107.25 32.7 3.0

Crude Oil 33.16 (3.9) (10.5)

US$ Yield10-year 2.12 (0.2) (6.8)

Event Period DateRetail Sales SA MoM Nov 15-Jan-16Retail Sales YoY Nov 15-Jan-16Retail Sales Ex Auto YoY Nov 15-Jan-16Non-oil Domestic Exports YoY Dec 18-Jan-16Electronic Exports YoY Dec 18-Jan-16Non-oil Domestic Exports SA MoM Dec 18-Jan-16Automobile COE Open Bid Cat A Jan 20-Jan-16Automobile COE Open Bid Cat B Jan 20-Jan-16Automobile COE Open Bid Cat E Jan 20-Jan-16CPI NSA MoM Dec 25-Jan-16CPI YoY Dec 25-Jan-16CPI Core YoY Dec 25-Jan-16Industrial Production SA MoM Dec 26-Jan-16Industrial Production YoY Dec 26-Jan-16Unemployment rate SA 4Q 28-Jan-16Money Supply M1 YoY Dec 29-Jan-16Money Supply M2 YoY Dec 29-Jan-16Credit Card Billings Dec 29-Jan-16Bank Loans and Advances YoY Dec 29-Jan-16Credit Card Bad Debts Dec 29-Jan-16

Company Ty pe Part iculars Ex Date Paid/ Pay ableFRASER AND NEAVE, LIMITED DIV IDEND SGD 0.03 ONE-TIER TAX 3-Feb-16 19-Feb-16

FRASERS CENTREPOINT LIMITED DIV IDEND SGD 0.062 ONE-TIER TAX 3-Feb-16 19-Feb-16

AVI-TECH ELECTRONICS LIMITED DIV IDEND SGD 0.007 ONE-TIER TAX 15-Feb-16 29-Feb-16N511100W 160401 ENTITL. REDEMPTION 100% 23-Mar-16 1-Apr-16

NY01100F 160901 ENTITL. REDEMPTION 100% 24-Aug-16 1-Sep-16

Company NameIPO Share

Price Last Close ICB Sector Name IPO DateNo. of Share

IPO Mkt Cap

SOG SP Equity Singapore O&G Ltd 0.250 0.74 Health Care Equipment & Serv ices 04/06/2015 218 54.5IXBIO SP Equity iX Biopharma Ltd 0.460 0.46 Pharmaceuticals & Biotechnology 22/07/2015 597.794 274.98524NAWT SP Equity NauticAWT Ltd 0.200 0.23 Oil Equipment, Serv ices & Distribution 23/07/2015 190.966 38.1932IXBIO SP Equity iX Biopharma Ltd 0.460 0.46 Pharmaceuticals & Biotechnology 22/07/2015 597.794 274.98524NAWT SP Equity NauticAWT Ltd 0.200 0.23 Oil Equipment, Serv ices & Distribution 23/07/2015 190.966 38.1932CCHL SP Equity Choo Chiang Holdings Ltd 0.350 0.37 Household Goods & Home Construction 29/07/2015 208 72.8CMC SP Equity CMC Infocomm Limited 0.250 0.07 Technology Hardware & Equipment 13/08/2015 152 38SK SP Equity Soo Kee Group Limited 0.300 0.16 General Retailers 20/08/2015 562.5 168.75TAKA SP Equity TLV Holdings Ltd 0.220 0.13 General Retailers 17/09/2015 565.506 124.41132JUMBO SP Equity Jumbo Group Ltd 0.250 0.42 General Retailers 09/11/2015 641.333 160.33325TTGL SP Equity Trendlines Group Ltd/The 0.330 0.25 Health Care Equipment & Serv ices 26/11/2015 508.742 167.88486AXCL SP Equity Axcelasia Inc 0.250 0.16 Financial Serv ices 27/11/2015 160.32 40.08


Wired Weekly

January 2016


Tues Wed Thu Fri1

Triyards 1Q 16

4 5 6 7 8

Automobile COE Open Bid Cat AGDP SAAR QoQ Automobile COE Open Bid Cat BGDP YoY Automobile COE Open Bid Cat E Foreign Reserves

11 12 13 14 15

EMAS 1Q 16 SPH 1Q 16 Keppel DC Reit 4Q 15Qian Hu 4Q 15 Cambridge Industrial Trust 4Q 15

Retail Sales SA MoMRetail Sales YoYRetail Sales Ex Auto YoY

18 19 20 21 22

Keppel Reit 4Q 15 Keppel T&T 4Q 15 Capitaland Commercial Trust 4Q 15 Keppel Corporation 4Q 15 CapitaLand Commercial TrUST 4Q 15Keppel Infrastucture Trust 4Q 15 First Real Estate Investment 4Q 15 Fraser Commercial Trust 1Q 16 Soilbuild Business Space Reit 4Q 16 CapitaLand Mall Trust 4Q 16M1 4Q 15 Fraser Centrepoint Trust 1Q 16

Ascendas India Trust 3Q 16

Non-oil Domestic Exports YoY Automobile COE Open Bid Cat AElectronic Exports YoY Automobile COE Open Bid Cat BNon-oil Domestic Exports SA MoM Automobile COE Open Bid Cat E

25 26 27 28 29

Cache Logistics Trust 4Q 15 Parkway Life 4Q 15 Mapletree Commercial Trust 3Q 16 CDL Hospitality Trusts 4Q 15 Magic 3Q 16

Money Supply M1 YoYMoney Supply M2 YoY

CPI NSA MoM Credit Card BillingsCPI YoY Industrial Production SA MoM Bank Loans and Advances YoYCPI Core YoY Industrial Production YoY Credit Card Bad Debts

31


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DBS Bank Ltd recommendations are based an Absolute Total Return* Rating system, defined as follows:

STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)

BUY (>15% total return over the next 12 months for small caps, >10% for large caps)

HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)

FULLY VALUED (negative total return i.e. > -10% over the next 12 months)

SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)

Share price appreciation + dividends Traders Spectrum’s product is oriented towards readers with either a short-term trading horizon. It aims to highlight topical themes, which may move stock prices on a daily basis. Readers should be aware that “TS Take” relies more on assessments of technical factors, likely sentiment responses and short term money flows, rather than on fundamental analysis. As such the “TS Take” may from time to time conflict with fundamental ratings (where stocks are ranked to Strong Buy, Buy, Hold, Fully Valued and Sell on a 12 month basis), which are maintained by DBS Bank Ltd analysts. In keeping with the short-term orientation of the product, a stock highlighted may or may not be covered or commented on on an ongoing basis. GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Bank Ltd. This report is solely intended for the clients of DBS Bank Ltd and DBS Vickers Securities (Singapore) Pte Ltd, its respective connected and associated corporations and affiliates (collectively, the “DBS Vickers Group”) only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBS Bank Ltd. The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS Bank Ltd., its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the “DBS Group”)) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgment by addressees, who should obtain separate independent legal or financial advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking services for these companies. Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the company (or companies) referred to in this report. The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that: (a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and (b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk

assessments stated therein. Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies) mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the commodity referred to in this report. DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, does not have its own investment banking or research department, has not participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage in market-making. ANALYST CERTIFICATION The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of 11 Jan 2016, the analyst(s) and his/her spouse and/or relatives who are financially dependent on the analyst(s), do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities).


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COMPANY-SPECIFIC / REGULATORY DISCLOSURES

1. DBS Bank Ltd., DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”), their subsidiaries and/or other affiliates have proprietary positions in Ascendas REIT, CapitaLand, CapitaLand Retail China Trust, CDL Hospitality Trusts, City Development, Ezion Holdings Frasers Centrepoint Trust, Keppel Corporation, Mapletree Greater China Commercial Trust, Noble Group, OCBC, SingTel ST Engineering, Thai Beverage Public Company, Venture Corporation recommended in this report as of 30 Nov 2015

2. DBS Bank Ltd does not market make in equity securities of the issuer(s) or company(ies) mentioned in this Research Report.

3.

Compensation for investment banking services: DBS Bank Ltd., DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12 months for investment banking services from Ascendas REIT and Keppel Corporation as of 30 Nov 2015. DBS Bank Ltd., DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of securities for Ascendas REIT in the past 12 months, as of 30 Nov 2015. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.

4. Directorship/trustee interests Peter Seah Lim Huat, Chairman of DBS Group Holdings, is a Deputy Chairman of CapitaLand as of 28 Feb 2015. Euleen Goh Yiu Kiang, a member of DBS Group Holdings Board of Directors, is a Director of CapitaLand as of 28 Feb 2015.

Woo Foong Pheng (Mrs Ow Foong Pheng), a member of DBS Group Holdings Board of Directors, is a Director of Mapletree Greater China as of 28 Feb 2015. Danny Teoh Leong Kay, a member of DBS Group Holdings Board of Directors, is a Director of Keppel Corporation as of 28 Feb 2015.

RESTRICTIONS ON DISTRIBUTION General This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or

located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

Australia This report is being distributed in Australia by DBS Bank Ltd. (“DBS”) or DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”), both of which are exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act 2001 (“CA”) in respect of financial services provided to the recipients. Both DBS and DBSVS are regulated by the Monetary Authority of Singapore under the laws of Singapore, which differ from Australian laws. Distribution of this report is intended only for “wholesale investors” within the meaning of the CA.

Hong Kong This report is being distributed in Hong Kong by DBS Vickers (Hong Kong) Limited which is licensed and regulated by the Hong Kong Securities and Futures Commission.

Indonesia This report is being distributed in Indonesia by PT DBS Vickers Securities Indonesia.

Malaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies.

Wong Ming Tek, Executive Director, ADBSR

Singapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No. 198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from, or in connection with the report.

Thailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Research reports distributed are only intended for institutional clients only and no other person may act upon it.

United This report is being distributed in the UK by DBS Vickers Securities (UK) Ltd, who is an authorised person in the meaning of


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Kingdom the Financial Services and Markets Act and is regulated by The Financial Conduct Authority. Research distributed in the UK is intended only for institutional clients.

Dubai

This research report is being distributed in The Dubai International Financial Centre (“DIFC”) by DBS Bank Ltd., (DIFC Branch) having its office at PO Box 506538, 3rd Floor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC), Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon it.

United States This report was prepared by DBS Bank Limited. DBSVUSA did not participate in its preparation. The research analyst(s) named on this report are not registered as research analysts with FINRA and are not associated persons of DBSVUSA. The research analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst compensation, communications with a subject company, public appearances and trading securities held by a research analyst. This report is being distributed in the United States by DBSVUSA, which accepts responsibility for its contents. This report may only be distributed to Major U.S. Institutional Investors (as defined in SEC Rule 15a-6) and to such other institutional investors and qualified persons as DBSVUSA may authorize. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to herein should contact DBSVUSA directly and not its affiliate.

Other jurisdictions

In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified, professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

DBS Bank Ltd. 12 Marina Boulevard, Marina Bay Financial Centre Tower 3

Singapore 018982 Tel. 65-6878 8888, Company Regn. No. 196800306E

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