25/01/2016 wired weekly - dbs bank wired weekly page 4 top large and small / mid cap picks source:...

25/01/2016

Source: DBS Bank Singapore Market Summary

25 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

2,400

2,500

2,600

2,700

2,800

2,900

3,000

3,100

3,200

3,300

3,400

3,500

3,600


ST Index

2025303540455055606570


Brent Crude OilUS$/barrel

Index @ 1 Wk % YTD %

F T SE Sectoral Indices 22- J an-16 Chg Chg

STI 2577.09 -2.0 -10.6

Mid Cap 621.91 -1.9 -6.8

Small Cap 375.27 -2.2 -7.0

All Share 634.32 -2.2 -8.7

China 181.93 -4.5 -12.9

Real Estate 641.64 -3.3 -8.5Real Estate & Dev 622.95 -5.9 -13.6

Real Estate Inv Trust 669.58 -0.9 -3.8

Oil & Gas 300.28 2.1 -21.3

Basic Materials 94.94 -4.4 -11.9

Industrials 650.21 -2.4 -2.4

Consumer Goods 408.2 -0.2 -5.1

Health Care 1412.97 -1.5 -4.0

Consumer Serv ice 731.53 0.3 -5.4

Telecommunication 893.7 -3.2 -6.4

Utilities 352.77 -6.9 -15.6

Financials 686.5 -3.0 -11.0

Technology 287.78 0.0 -9.1

Yeo Kee Yan (65) 6682 3706 [email protected]

ed: TH / sa: JC

KEY POINTS STI – Short-covering + bargain hunting drive rebound

off 2500 ahead of FOMC meeting

Rebound leaders likely to be rigbuilders KepCorp, SCI & SMM

Wired Weekly

With the ECB signalling more stimuli, expectations are for the Fed to deliver a dovish interest rate outlook this week. Much has happened since the Fed initiated the rate hike cycle a month ago. Consensus now only expects JUST ONE rate hike in July this year that lifts the Fed Funds Rate to 0.75%, down from expectations for two hikes to 1% last month. This is far lower than the official Fed forecast for four rate hikes this year.

The Singapore market trades at just 1.12x P/BV and slightly below 10.6x (-2SD) 12-mth forward PE following the 10.5% decline in the STI YTD. We expect short-covering and bargain hunting activities ahead of the FOMC meeting this Thursday. This looks to have started last Friday with the STI rebounding off a low of 2530 last week that coincides with our anticipated short-term inflexion point at 2500.

A dovish interest rate outlook by the Fed could result in a decline in the USD against regional currencies and a rebound in oil and USD-denominated commodities. For Singapore stocks, the two sectors that suffered the worst selling pressure YTD: rigbuilders Keppel Corp, SembCorp Marine and SembCorp Industries, as well as banks should lead the rebound.

Between these two, we think the rigbuilders are at the leading edge given their positive w-o-w performance over the banks and STI. The price action of rigbuilders has just reversed from relative underperform to outperform.

The table below shows the possible rebound levels based on the upward retracement of the rigbuilders' share declines since October last year.

Rigbuilders' price retracement levels

Stock Current ($)

Up retracement levels

23.6% 38.2%

Keppel Corp 5.02 5.3 5.71

SembCorp Industries 2.34 2.58 2.84

SembCorp Marine 1.555 1.63 1.84

Source: DBS Bank

2600

2800

3000

3200

3400

3600

3800

4000

Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16

Average @ 13.8x

+0.5SD @ 14.5x

-0.5SD @ 13.0x

-1SD @ 12.2x


Wired Weekly

Rigbuilders positive 1st time YTD but property stocks succumbed to selling pressure

Singapore stocks ended lower for the 3rd consecutive week since the year began with the benchmark STI down 53pts (-2%). Still, the STI ended off the week’s low of 2532 following a rebound on Friday after ECB President Draghi signalled more stimuli in the offing and could be undertaken as early as March.

Once again, index heavyweight banks and SingTel was the main drag. Property stocks, which held up relatively better in the initial 1-2 weeks of the year, finally succumbed to selling pressure and were also among the top index laggards last week.

On a more positive note, rigbuilders Keppel Corp and SembCorp Marine (SMM) put up a positive performance for the first time YTD. Shares of both stocks rebounded on the revival of speculation that SembCorp Marine may be privatised and after oil price held steady over the past week.

While we do not rule out the possibility, our analyst does not see an urgency for parent SembCorp Industries to make an offer for SMM in view of the bleak sector outlook, unless the worsening situation in Brazil requires SCI to step in. Alternatively, we had also talked about the potential merger of Keppel O&M and SMM to enhance the competitiveness to ride through this downturn.

SREITs CMT and AREIT held steady, supported by dividend expectations in the current earnings season.

STI movers & shakers last week

Source: DBS Bank

Eyes on the Fed

Attention turns to the 2-day FOMC meeting this Thursday. Much has happened since the Fed initiated the rate hike cycle in mid-December. Firstly, inflation expectations are even lower now with oil price falling as much as 25% over the past 1month. Next, the latest US data such as industrial production, ISM manufacturing and housing starts that came in worse-than-expected have cast doubts about the strength of the US recovery.

At the previous FOMC meeting in December, the Fed's forecast was for four rate hikes this year. However, the consensus expectation was far tamer and it has gone even more so over the past month. Data from CME Group FedWatch shows that consensus expectations for Fed rate hikes have taken a big downswing over the past month (see chart below). Consensus now only expects JUST ONE rate hike in July this year that lifts the Fed Funds Rate to 0.75%, down from expectations for two hikes to 1% just last month.

Company Price ($) Change % Change Index pts

DBS 13.89 ‐0.75 ‐5.12 ‐16.6

HK Land 5.75 ‐0.57 ‐9.02 ‐12.6

OCBC 7.71 ‐0.24 ‐3.02 ‐9.7

SingTel 3.46 ‐0.1 ‐2.81 ‐9.1

GLP 1.75 ‐0.175 ‐9.09 ‐6.5

Capitaland 2.93 ‐0.14 ‐4.56 ‐4.4

CityDev 6.75 ‐0.54 ‐7.41 ‐4.0

HPH Trust 0.48 ‐0.02 ‐4 ‐2.0

Sembcorp Industries 2.26 ‐0.18 ‐7.38 ‐2.0

UOB 17.52 ‐0.08 ‐0.45 ‐1.2

StarHub 3.38 ‐0.09 ‐2.59 ‐0.7

Thai Beverage 0.68 ‐0.005 ‐0.73 ‐0.6

SIA 10.95 ‐0.09 ‐0.82 ‐0.6

SGX 6.81 ‐0.04 ‐0.58 ‐0.4

SIA Eng 3.45 ‐0.14 ‐3.9 ‐0.4

UOL 5.57 ‐0.06 ‐1.07 ‐0.4

ComfortDelGro 2.87 ‐0.01 ‐0.35 ‐0.3

Genting Singapore 0.69 0 0 0.0

Golden Agri‐Resources 0.34 0 0 0.0

Noble Group 0.295 0 0 0.0

Yangzijiang 0.925 0 0 0.0

SATS 3.91 0.03 0.77 0.2

SPH 3.58 0.02 0.56 0.4

CapitaLand Mall Trust 1.935 0.015 0.78 0.5

STEng 2.92 0.04 1.39 0.8

AREIT 2.18 0.04 1.87 1.0

Wilmar Intl 2.71 0.04 1.5 1.0

Jardine C&C 34.33 0.98 2.94 1.3

Sembcorp Marine 1.535 0.15 10.83 1.6

Keppel Corp 4.95 0.11 2.27 1.9

Rigbuilders positive SREITs steady amid

lowered expectations for Fed rate hikes

Index heavyweight banks and SingTel were a drag

Property stocks weak


Wired Weekly

Probability of FFR at 0.75% by year-end Probability of FFR at 1% by year-end

Source: CME Group FedWatch, DBS Bank Consensus expectation for Fed hikes this year

Source: CME Group FedWatch, DBS Bank Rebound trade heading to FOMC

Last week’s rebound off the intra-week low at 2530 was near our anticipated inflexion point of 2500. With the ECB signalling more stimulus and consensus expectations for Fed rate hikes slashed over the past month, investors will be watching closely for any hints by the Fed that the pace of rate hikes will be reduced. The current Fed forecast of four rate hikes this year is much higher than consensus expectation for just one.

Following the 10.5% sell-down YTD, the Singapore market trades at just 1.12x P/BV and slightly below 10.6x (-2SD) 12-mth forward PE for the STI. While valuations are attractive, sellers have had the upper hand in the past 2-3 weeks riding on the fear of a China hard landing, the negative (and ignoring the positive) implication of falling oil price and the start of the rising US interest rate cycle.

Expectations for a more dovish commentary by the Fed that recognises the developments over the past 2-3 weeks and leaning to lesser rate hikes could be what the stock market needs to deliver a much needed short-term positive respite. A dovish Fed commentary will lead to a decline in the USD against regional currencies and a rebound in oil and USD-denominated commodities.

The rebound will likely derive its energy from short-covering as well as bargain hunting on oversold technicals and as valuations fall to attractive levels. It may have already started last Friday.

The two sectors that suffered the worst selling pressure YTD: rigbuilders Keppel Corp, SembCorp Marine and SembCorp Industries as well as banks should lead the rebound. Between these two, we think the rigbuilders are at the leading edge given their positive w-o-w performance over the banks and STI. That is, the price action of rigbuilders has just reversed from relative underperform to outperform.

The table below shows the possible rebound levels based on the upward retracement of the rigbuilders' share declines since October last year.

Rigbuilders' price retracement levels

Stock Current ($) Up retracement levels

23.6% 38.2%

Keppel Corp 5.02 5.3 5.71

SembCorp Industries 2.34 2.58 2.84

SembCorp Marine 1.555 1.63 1.84

Source: DBS Bank

0

10

20

30

40

50

60

70

80

90

100 Last month

Current

1st rate hike to 0.75% in Jul16

1st rate hike to 0.75% in Mar16

0

10

20

30

40

50

60

70

80

2nd rate hike to 1% in Sept16

Last month

Current

Curre nt Pre vious month

0.75% Jul-16 Mar-16

1% Not this year Sep-16

TimingFe d Funds Ra te


Wired Weekly

Top large and small / mid cap picks

Source: DBS Bank

TOP LARGE CAP PICKS

Company Recom PriceTarget Price

Upside Catalyst

Capitaland BUY 2.990 3.73 25% 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 2.930 3.60 23% 1) Outlook remains healthy.2)Targeted investments provide potential upside in medium term.3) M&A potential remains untapped.

TOP SMALL / MID CAP PICKS

Company Recom PriceTarget Price

Upside Catalyst

Mapletree Greater China Commercial Trust

BUY 0.820 1.11 36% 1) Visible organic growth2) Portfolio of quality assets

Venture Corporation BUY 7.880 9.00 14% 1) Beneficiary of the strong US dollar and weak ringgit.2) Strong balance sheet and net cash position to support dividend payout of 50Scts, with a yield of c.6%.


Wired Weekly

Major research reports released last week

Company / Sector Recommendation Target Price ($) Key Points

Telecom - - 1) IDA and MDA to restructure into two entities in 2H162) The converged entity will be responsible for regulating infocommunications and media sector; this can potentially shift timeline on 4th telco entry in our view.3) Upgrade M1 to HOLD with unchanged TP of S$2.60. Maintain FV on StarHub with unchanged TP of S$3.30. Assuming no 4th telco entry, our bull case TPs for M1 and StarHub will be S$3.40 and S$3.90 respectively.

Singapore Property - - 1) Dec 15 was a relatively quiet month for residential property launches and sales.2) FY15 residential property launches +8%YoY while sales +13%YoY mainly led by EC. Private units launched -6%YoY and sales +3%YoY.3) FCL won Siglap Land bid on a tightest winning margin since 2015.4) 2016 volumes to remain low. Top picks: CAPL, City Dev, FCL.

Singapore Hospitality

- - 1) November 2015 RevPAR down 5% despite 4% rebound in tourist arrivals2) Expect hospitality REITs to report soft 4Q15 results3) Supply headwinds to persist heading into 20164) Top pick – CDREIT (BUY, TP S$1.54)

Singapore Exchange BUY (Upgrade from Hold)

S$7.80 1) 2Q16 results in line; 5cts DPS was declared for the quarter2) Securities revenue down 10%; continued growth from Derivatives3) Outlook for the Securities and Derivatives markets remain challenging4) Upgrade to BUY on valuation basis; TP unchanged at S$7.80

M1 HOLD (Upgrade from FULLY VALUED)

S$2.60 Negatives are priced in but uncertainty lingers

Ezra Holdings HOLD (Downgrade from BUY)

S$0.08 (Prev S$0.30)

Expect no respite from losses

Keppel Corporation HOLD Under review 1) FY15 PATMI in line; provisions for Sete Brasil projects offset by stellar property earnings and revaluation gains2) Declared 22 Scts final DPS, bringing total FY15 DPS to 34 Scts; dividend payout cut from 50% to 40%3) Challenging O&M outlook; worst is over for Infrastructure segment; optimistic on property sales in China and Vietnam

Frasers Centrepoint Trust

BUY S$2.04 1) Record high quarterly DPU at 2.87Scts, as lower property expenses supported a higher NPI2) Manager aims to maintain DPU despite disruptions by Northpoint’s AEI3) Conservative gearing below 30%

Soilbuild Business Space REIT

BUY S$0.84 1) 4Q15 results boosted by acquisitions2) Revising rental reversion; occupancy assumptions to account for weaker operational outlook3) Maintain BUY, TP S$0.84

Frasers Commercial Trust

BUY S$1.53 1) 1Q16 DPU of 2.51 Scts (+2% y-o-y) in line2) Results boosted by full quarter contribution from the acquisition of 357 Collins Street in Melbourne3) Supply headwinds mitigated by under-rented properties

CapitaLand Commercial Trust

BUY S$1.48 1) 4Q15 DPU of 2.17 Scts (+0.9% y-o-y) in line2) Results boosted by higher contribution from CapitaGreen3) One third of leases due in 2016 already renewed in advance

Hutchison Port Holdings Trust

BUY US$0.63 Safe harbour

Keppel REIT BUY S$1.01 1) 4Q15 results in line2) Outlook remains stable; K-REIT strategy to focus on tenant retention to work as earnings expected to remain stable

Keppel Infrastructure Trust

- S$0.56 1) DPU of 0.93Scts for 4Q-2015 in line with estimates2) Cash income from City Gas rebounds in 4Q after under-recovery of costs in 3Q3) Basslink outage will not affect distributions


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: -13.3% YTD: -18.6% 12 mth: -23.9% YTD: -15.4% 12 mth: -17.8% YTD: -8.1%

1 mth: -21.1% 1 Wk: -4.2% 1 mth: -15.1% 1 Wk: -6.4% 1 mth: -7.6% 1 Wk: -1.0%

1,900

2,500

3,100

3,700

4,300

4,900

5,500


Shanghai Comp Index

16,000

18,000

20,000

22,000

24,000

26,000

28,000

30,000


Hang Seng Index

7,200

7,600

8,000

8,400

8,800

9,200

9,600

10,000

10,400


Taiwan Index


1 mth: -15.2% 1 Wk: -7.1% 1 mth: -8.8% 1 Wk: -3.0% 1 mth: -10.6% 1 Wk: -3.1%

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


Dow Jones

4,200

4,400

4,600

4,800

5,000

5,200

5,400


Nasdaq

12 mth: 7.2% YTD: 1.0% 12 mth: -0.9% YTD: -2.8% 12 mth: -6.6% YTD: -0.4%

1 mth: 2.0% 1 Wk: -0.3% 1 mth: -3.4% 1 Wk: -0.9% 1 mth: -1.3% 1 Wk: -0.1%

1.30

1.35

1.40

1.45


usd/SGD

114

116

118

120

122

124

126

128


usd/JPY

1.00

1.02

1.04

1.06

1.08

1.10

1.12

1.14

1.16

1.18


Euro/USD

12 mth: 5.9% YTD: 1.3% 12 mth: -1.7% YTD: -0.5% 12 mth: -9.5% YTD: -3.8%

1 mth: 1.6% 1 Wk: -0.2% 1 mth: -0.8% 1 Wk: -0.2% 1 mth: -2.2% 1 Wk: -0.5%

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: -53.9% YTD: -25.7%

1 mth: -25.1% 1 Wk: -7.3%

200

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


1 mth: -22.7% 1 Wk: -9.3% 1 mth: 0.0% 1 Wk: 0.3% 1 mth: -2.6% 1 Wk: 0.8%

2025303540455055606570


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: -17.5% YTD: -3.5% 12 mth: -29.3% YTD: -6.3% 12 mth: -20.0% YTD: 4.0%

1 mth: -4.1% 1 Wk: -1.5% 1 mth: -6.8% 1 Wk: 2.5% 1 mth: 6.5% 1 Wk: 1.1%

1,500

1,600

1,700

1,800

1,900


AluminiumUS$/MT

12,000

14,000

16,000

18,000

20,000


TinUS$/MT

1,400

1,600

1,800

2,000

2,200

2,400

2,600


Steel (rebar)RMB/MT

12 mth: -23.6% YTD: -5.8% 12 mth: -41.8% YTD: -0.8% 12 mth: -15.3% YTD: 3.0%

1 mth: -4.8% 1 Wk: 0.3% 1 mth: 1.3% 1 Wk: 2.0% 1 mth: 1.7% 1 Wk: 1.1%

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 22- J an-16 (000 Shrs) (000 Shrs) (%) (%) (%) (%) (S$m)1 ST SP SingTel SGD 3.53 10,381 28,302 (1) (1) (1) 12.3 56,2812 OCBC SP OCBC Bk SGD 7.89 2,546 9,713 15 15 15 12.2 32,4593 DBS SP DBS SGD 14.34 5,132 12,962 (9) (9) (9) 12.1 35,8484 UOB SP UOB SGD 18.10 960 4,309 (6) (6) (6) 10.3 29,0925 HKL SP HKLand US$ USD 5.99 558 4,017 (7) (7) (7) 4.8 20,1526 CAPL SP Capitaland SGD 3.02 5,212 21,262 (8) (8) (8) 3.6 12,8297 KEP SP Keppel Corp SGD 5.01 4,491 13,550 (23) (23) (23) 3.4 9,0748 THBEV SP Thai Beverage PCL SGD 0.68 7,366 9,849 7 7 7 3.2 17,0759 CD SP ComfortDelGro SGD 2.88 222 5,072 5 5 5 2.8 6,19410 WIL SP Wilmar SGD 2.77 1,114 8,708 2 2 2 2.8 17,50611 SGX SP SGX SGD 7.01 891 3,508 (7) (7) (7) 2.7 7,51212 SPH SP SPH SGD 3.60 911 4,562 0 0 0 2.7 5,75413 SIA SP SIA SGD 10.96 192 1,840 5 5 5 2.6 12,75114 CT SP CapitaMall SGD 1.97 3,862 10,670 12 12 12 2.5 6,95815 GLP SP Global Logistics Properties SGD 1.74 14,503 26,661 (9) (9) (9) 2.5 8,25416 AREIT SP A-REIT SGD 2.24 4,036 13,891 8 8 8 2.2 5,75517 STE SP ST Engg SGD 2.93 583 2,748 6 6 6 2.2 9,08518 GENS SP Genting SP SGD 0.69 2,801 15,626 4 4 4 2.0 8,28119 CIT SP City Developments SGD 6.83 417 3,529 (13) (13) (13) 1.9 6,21120 JCNC SP Jardine C&C SGD 34.70 44 326 14 14 14 1.8 13,71521 HPHT SP HPHT (US$) USD 0.49 4,755 12,049 (8) (8) (8) 1.7 6,10322 UOL SP UOL Group SGD 5.56 372 1,200 (5) (5) (5) 1.2 4,42723 SATS SP SATS SGD 3.90 350 2,066 17 17 17 1.2 4,33224 GGR SP GoldenAgr SGD 0.34 3,306 20,416 19 19 19 1.0 4,33025 SCI SP Semb Corp SGD 2.40 3,388 14,058 (11) (11) (11) 1.0 4,28426 STH SP StarHub SGD 3.37 674 2,724 (5) (5) (5) 0.9 5,82327 YZJSGD SP Yangzijiang SGD 0.93 2,563 15,391 (5) (5) (5) 0.9 3,56428 NOBL SP Noble Grp SGD 0.30 24,249 56,595 (2) (2) (2) 0.6 1,96129 SMM SP SembMar SGD 1.59 2,287 10,114 12 12 12 0.6 3,31030 SIE SP SIA Engg SGD 3.45 57 186 3 3 3 0.4 3,870


Wired Weekly

Surce: Bloomberg Finance L.P.

At A Glance Currencies

Other Important Indicators

Important Dates (Singapore)

Announced Dividends and Capital Issues

Upcoming IPOs

Recent IPO Trading

Last Close

Pts chg

% Chg 1 wk

SG$/US$ 1.44 (0.0) 0.1

Yen/US$ 117.38 (0.8) (0.7)

US$/Euro 0.92 (0.0) (0.7)

AUS$/US$ 1.45 0.0 1.2

Pound/US$ 1.43 (0.0) (1.3)

Last Close

Pt s chg 1wk

% Chg 1 wk

Gold 1097.80 8.9 0.8

Crude Oil 30.99 1.6 5.3

US$ Yield10-year 2.05 0.0 0.8

Event Period DateCPI 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-16Electronics Sector Index Jan 2-Feb-16Purchasing Managers Index Jan 2-Feb-16Nikkei Singapore PMI Jan 3-Feb-16Automobile COE Open Bid Cat A Feb 3-Feb-16Foreign Reserves Jan 5-Feb-16Retail Sales SA MoM Dec 15-Feb-16Retail Sales YoY Dec 15-Feb-16Retail Sales Ex Auto YoY Dec 15-Feb-16Non-oil Domestic Exports YoY Jan 17-Feb-16Electronic Exports YoY Jan 17-Feb-16Non-oil Domestic Exports SA MoM Jan 17-Feb-16Automobile COE Open Bid Cat A Feb 17-Feb-16GDP YoY 4Q F 19-Feb-16GDP SAAR QoQ 4Q F 19-Feb-16Annual GDP Jul 19-Feb-16CPI NSA MoM Jan 23-Feb-16CPI YoY Jan 23-Feb-16CPI Core YoY Jan 23-Feb-16Industrial Production SA MoM Jan 26-Feb-16Industrial Production YoY Jan 26-Feb-16Money Supply M1 YoY Jan 29-Feb-16Money Supply M2 YoY Jan 29-Feb-16Credit Card Billings Jan 29-Feb-16Bank Loans and Advances YoY Jan 29-Feb-16Credit Card Bad Debts Jan 29-Feb-16

Company Ty pe Part iculars Ex Date Paid/ Pay able

FIRST REAL ESTATE INV TRUST DIV IDEND DRP;0110-3112 SGD 0.011 TAX EXEMPT 25-Jan-16 29-Feb-16

FIRST REAL ESTATE INV TRUST DIV IDEND DRP;0110-3112 SGD 0.0091 25-Jan-16 29-Feb-16FIRST REAL ESTATE INV TRUST DIV IDEND DRP;0110-3112 SGD 0.0008 LESS TAX 25-Jan-16 29-Feb-16

FIRST REAL ESTATE INV TRUST A ENTITL. DELIST A SHARE 25-Jan-16

CAPITALAND COMMERCIAL TRUST DIV IDEND 010715-311215 SGD 0.0001 TAX EXEMPT 26-Jan-16 26-Feb-16

CAPITALAND COMMERCIAL TRUST DIV IDEND 010715-311215 SGD 0.043 LESS TAX 26-Jan-16 26-Feb-16

FRASERS COMMERCIAL TRUST DIV IDEND DRP;0110-3112 SGD 0.0067 TAX EXEMPT 26-Jan-16 29-Feb-16

FRASERS COMMERCIAL TRUST DIV IDEND DRP;0110-3112 SGD 0.0184 LESS TAX 26-Jan-16 29-Feb-16

SINGAPORE EXCHANGE LIMITED DIVIDEND SGD 0.05 ONE-TIER TAX 26-Jan-16 04-Feb-16

FRASERS CENTREPOINT TRUST DIV IDEND 011015-311215 0.0287% LESS TAX 27-Jan-16 29-Feb-16

SOILBUILD BUSINESS SPACE REIT DIV IDEND 011015-311215 SGD 0.01614 LESS TAX 27-Jan-16 23-Feb-16

CAPITALAND MALL TRUST DIV IDEND 011015-311215 SGD 0.0288 LESS TAX 28-Jan-16 29-Feb-16

BRC ASIA LIMITED DIVIDEND SGD 0.02 ONE-TIER TAX 02-Feb-16 18-Feb-16

KEONG HONG HOLDINGS LIMITED DIVIDEND SGD 0.04 ONE-TIER TAX 02-Feb-16 19-Feb-16

FORTUNE REAL ESTATE INV TRUST DIV IDEND 010715-311215 HKD 0.235 TAX EXEMPT 03-Feb-16 29-Feb-16

FRASER AND NEAVE, LIMITED DIVIDEND SGD 0.03 ONE-TIER TAX 03-Feb-16 19-Feb-16

FRASERS CENTREPOINT LIMITED DIVIDEND SGD 0.062 ONE-TIER TAX 03-Feb-16 19-Feb-16

PNE INDUSTRIES LTD DIVIDEND SGD 0.02 ONE-TIER TAX 03-Feb-16 19-Feb-16

AVI-TECH ELECTRONICS LIMITED DIVIDEND SGD 0.007 ONE-TIER TAX 15-Feb-16 29-Feb-16

COSMOSTEEL HOLDINGS LIMITED DIVIDEND SGD 0.005 ONE-TIER TAX 25-Feb-16 11-Mar-16

N511100W 160401 ENTITL. REDEMPTION 100% 23-Mar-16 01-Apr-16

QIAN HU CORPORATION LIMITED DIVIDEND SGD 0.002 ONE-TIER TAX 07-Apr-16 21-Apr-16

M1 LIMITED DIVIDEND SGD 0.083 ONE-TIER TAX 12-Apr-16 21-Apr-16

KEPPEL TELE & TRAN DIVIDEND SGD 0.035 ONE-TIER TAX 21-Apr-16 10-May-16

KEPPEL CORPORATION LIMITED DIVIDEND SGD 0.22 ONE-TIER TAX 22-Apr-16 06-May-16

NY01100F 160901 ENTITL. REDEMPTION 100% 24-Aug-16 01-Sep-16

Company T otal Shares (m) Price Range (S$) Tra d ing Da te

Secura Group Ltd 112.00 $0.25 28-Jan-16

Company NameIPO Share

Price Last Close ICB Sector Name IPO DateNo. of Share

IPO Mk t Cap

TAKA SP Equity TLV Holdings Ltd 0.220 0.13 General Retailers 17/09/2015 566 124JUMBO SP Equity Jumbo Group Ltd 0.250 0.47 General Retailers 09/11/2015 641 160TTGL SP Equity Trendlines Group Ltd/The 0.330 0.17 Health Care Equipment & Serv ices 26/11/2015 509 168AXCL SP Equity Axcelasia Inc 0.250 0.17 F inancial Serv ices 27/11/2015 160 40EIN SP Equity Eindec Corp Ltd 0.210 0.21 Industrial Distribution & Rental 15/01/2016 108 23GSHL SP Equity GS Holdings Ltd 0.250 0.25 Industrial Distribution & Rental 18/01/2016 124 31


Wired Weekly

January 2016


Mon Tues Wed Thu Fri1

4 5 6 7 8

SPH REIT 1Q 16 Goodland Group 4Q 15Triyards Holdings 1Q 16

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

Cheung Woh Tech 3Q 16 Qian Hu 4Q 15 Lian Beng Group 2Q 16 Cambridge Industrial Trust 4Q 15EMAS 1Q 16 Tee Land 2Q 16 Ezra 1Q 16Miyoshi Ltd 1Q 16 Tee International 2Q 16 Keppel DC Reit 4Q 15

SPH 1Q 16

Retail Sales SA MoMRetail Sales YoYRetail Sales Ex Auto YoY

18 19 20 21 22

Keppel Infrastucture Trust 3Q 16 First Real Estate Investment 4Q 15 Capitaland Commercial Trust 4Q 15 Ascendas India Trust 3Q 16 Ascendas Reit 3Q 16Keppel Reit 4Q 15 Keppel T&T 4Q 15 Fraser Commercial Trust 1Q 16 Fortune Reit 4Q 15 CapitaLand Mall Trust 4Q 15M1 4Q 15 Singapore Exchange 2Q 16 Fraser Centrepoint Trust 1Q 16

Keppel Corporation 4Q 15Soilbuild Business Space Reit 4Q 15

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 Ascott Residence Trust 4Q 15 Mapletree Commercial Trust 3Q 16 Ascendas Hospitality 3Q 16 MAGIC 3Q 16Mapletree Logistics Trust 3Q 16 Parkway Life 4Q 15 OUE Commercial Reit 4Q 15 CDL Hospitality Trusts 4Q 15OUE Hospitality 4Q 15 Viva Industrial Trust 4Q 15 Frasers Hospitality Trust 1Q 16Sabana Shar'ah 4Q 15 YTL Starhill Global Reit 2Q 16 OSIM International 4Q 15SMRT 3Q 16 Mapletree Industrial Trust 3Q 16 Tuan Sing Holdings 4Q 15

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


Wired Weekly

February 2016

Mon Tues Wed Thu Fri1 2 3 4 5

SIA Engineering 3Q 16 Hutchison Port Hldgs 4Q 15 Frasers Centrepoint Ltd 1Q 16 ARA Asset Mgmt 4Q 15 UOI 4Q 15Religare Health Trust 3Q 16 ASL Marine 2Q 16

Capitaland Retail China Trust 4Q 15Global Logistic Properties 3Q 16Perennial Real Estate 2Q 16Singapore Airlines 3Q 16Vicom Ltd 4Q 15

Electronics Sector Index Nikkei Singapore PMIPurchasing Managers Index Automobile COE Open Bid Cat A Foreign Reserves

8 9 10 11 12

ComfortDelgro 4Q 15SATS 4Q 15SBS Transit 4Q 15

15 16 17 18 19

Cosco Corp 4Q 15 Great Eastern 4Q 15 Axis Offshore 4Q 15 Genting Singapore 4Q 15Sembcorp Marine 4Q 15 Starhub 4Q 15 OCBC 4Q 15 Wilmar International 4Q 15

UOB 4Q 15 Sembcorp Industries 4Q 15

Automobile COE Open Bid Cat ARetail Sales SA MoM Electronic Exports YoY Annual GDPRetail Sales YoY Non-oil Domestic Exports SA MoM GDP SAAR QoQRetail Sales Ex Auto YoY Non-oil Domestic Exports YoY GDP YoY

22 23 24 25 26

DBS Group 4Q 15 NOL 4Q 15 Hi-P 4Q 15 HTL International 4Q 15 Aztech 4Q 15

XP Power 4Q 15 Super Group 4Q 15 Ho Bee 4Q 15 BW LPG 4Q 15Indofood Agri 4Q 15Mewah 4Q 15

CPI NSA MoMCPI YoY Industrial Production SA MoMCPI Core YoY Industrial Production YoY

29

Bank Loans and Advances YoYCredit Card Bad DebtsCredit Card BillingsMoney Supply M1 YoYMoney Supply M2 YoY


Wired Weekly

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 25 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).


Wired Weekly

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 Commercial Trust, CapitaLand Mall Trust, CDL Hospitality Trusts, City Development, ComfortDelgro, DBS Bank Ltd, Ezra Holdings, Frasers Centrepoint Trust, Frasers Commercial Trust, Genting Singapore, Global Logistic Properties, Golden Agri Resources, Hong Kong Land, Hutchison Port Holdings Trust, Jardine Cycle & Carriage, Keppel Corporation, Keppel Infrastructure Trust, Keppel REIT, M1, Mapletree Greater China Commercial Trust, Noble Group, OCBC, SATS, Sembcorp Industries, Sembcorp Marine, SIA Engineering, Singapore Airlines, Singapore Exchange, SingTel, Soilbuild Business Space Reit, SPH, ST Engineering, StarHub, Thai Beverage Public Company, UOB, UOL Group, Venture Corporation, Wilmar International, Yangzijiang Shipbuilding recommended in this report as of 31 Dec 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. DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates beneficially own a total of 1% of any class of common equity securities of Soilbuild Business Space Reit as of 31 Dec 2015.

4.

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, Ezra Holdings, Frasers Commercial Trust, Keppel Corporation, Keppel Infrastructure Trust, Keppel REIT, Singapore Airlines, Soilbuild Business Space Reit as of 31 Dec 2015.

DBS Bank Ltd., DBSVS, their subsidiaries and/or other affiliates of DBSVUSA, within the next 3 months, will receive or intend to seek compensation for investment banking services from Singapore Airlines as of 31 Dec 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, Ezra Holdings, Frasers Commercial Trust, Keppel Infrastructure Trust, Keppel REIT, Soilbuild Business Space Reit in the past 12 months, as of 31 Dec 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.

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

Danny Teoh Leong Kay, a member of DBS Group Holdings Board of Directors, is a Director of CapitaMalls Trust Mgmt Ltd and Keppel Corporation 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.

Nihal Vijaya Devadas Kaviratne CBE, a member of DBS Group Holdings Board of Directors, is a Director of SATS and Starhub 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


Wired Weekly

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 Kingdom

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