2018 Asiamoney Poll: Please Vote for DBS Bank / DBS ...

2018 Asiamoney Poll:

Please Vote for

DBS Bank / DBS Vickers

Research (Regional)

June 2018

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Strategy

Joanna Goh

Macro Economics

Taimur Baig (Chief Economist)

Small Mid Cap

Andy Sim

Paul Yong

Sachin Mittal

Sue Lin Lim

Suvro Sarkar

Patricia Yeung

Banks / Diversified Financials

Sue Lin Lim

Consumer Discretionary

Andy Sim

Alfie Yeo

Consumer Staples

Andy Sim

Alfie Yeo

William Simadiputra

Marvin Khor

Rui Wen Lim

Energy

Ho Pei Hwa

Suvro Sarkar

Healthcare

Andy Sim

Industrial Conglomerates /

Infrastructure

Suvro Sarkar

Tjen San Chong

Tiesha N Putri

Materials

Eun Young Lee

Telecom /

Sachin Mittal

Transport (Regional)

Paul Yong

Utilities

Patricia Yeung

DBS RESEARCH – SINGAPORE TEAM

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Our Asiamoney Record 2017

In the Region, DBS has achieved the following:

#2 Research Coverage: Real Estate

#3 Research Coverage: Consumer Discretionary

#3 Research Coverage: Energy

#3 Research Coverage: Utilities

#5 for Best Overall Research

#6 for Best Overall Combined Research & Sales

#7 for Best Overall Sales

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Our Awards2017 Greenwich Asia awards

Singapore:

Ranked 1st for Penetration in Asian Equity

Regional:

Ranked 2nd for SMC Asian Corporate Access for Asian Institutions

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Category:

Overall Country Research

2017 Asiamoney: 1st for Overall

Country Research

in 2016 and 2017VOTE!

✓ Best for Overall Country Research Ranked TOP 3 since 2008

✓ Experienced & Stable Team ALL our senior analysts have > 10 yrs of experience

✓ Extensive, on the ground and In-Depth Coverage Most extensive coverage over 100 stocks in

Singapore.

✓ Discovery of hidden gems – first to highlight and promote several new undervalued stocks

✓ Model portfolio – outperformed STI by 4.7% since its launch in January 2017

✓ DBS Asian Insights SparX - A deep dive into thematic angles with a differentiated view on a

sector, country or the region

WHY VOTE FOR DBS?

Our signature reports ….

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“Strong on-ground coverage on consumer sub-sectors – Grocery retail, Food

Service, F&B; Asiamoney Singapore’s best consumer discretionary team for four

years running...”

Andy Sim Alfie Yeo

Top 3 Notable Calls (2017-2018):

#1 Grocery retail/ Sheng Siong & DFI: Indepth study and report on ASEAN Grocery retail, and reiterated positive view of brick-

and-mortar players despite concerns from online players, particularly Amazon’s entry into Singapore. Stayed positive on

Dairy Farm and Sheng Siong and price up c.18% & 10% post sell-down in Aug’17.

#2 BreadTalk Group: Continued to remain positive on back of earnings recovery; share price up >30% in past 1 year

#3 Jumbo: Continued to remained neutral on Jumbo since early 2017 despite excitement on new franchises signed overseas, given concerns on start up costs. Initiated coverage in Jun'16 on back of potential of overseas expansion; share price +36% when we downgraded. Price underperform and down by -18% in past 1 year.

Industry:

Consumer Staple,

Consumer Discretionary

2014 - 2017 Asiamoney: Vote for

Asiamoney’s no.1 consumer

discretionary team in Singapore and

no. 3 in Regional.

VOTE!

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“We do not expect strong rally on CPO price but we can still pick selectively over the listed CPO stocks.” Feb 2018

“Steady demand will continue to buffer CPO price – limiting structural downside risk for CPO price.” Nov 2017

“Volume growth and yield expansion will be the earnings growth and profitability driver – critical factor for plantation

stocks.” July 2017

Top Notable Calls (2017-2018):

• #1 Our most notable pick so far was Wilmar International – we upgraded this counter to BUY back in February 2018 after its

pro longed share price correction since 2016. Our BUY rating yielded 9% gain from its peak this year.

• #2 Maintained Hold recommendations on large cap Malaysian plantation names like KL Kepong, IOI Corp and Sime Darby

Plantation reflecting flattish share price performance over the past year

• Organised DBS Palm Oil Corporate Day in March 2018 which facilitated >80 client meetings with regional plantation companies

Industry (Regional):

Consumer Staples

(Plantations)

VOTE!William

SimadiputraMarvin Khor Rui Wen Lim

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Suvro Sarkar

Most Notable Calls (2017-2018):#1 Stock: We pushed Medco since Mid 2016 and last year, we reiterated our BUY and positive view on this stock on its internal operational turnaround. The stock price surged by +551% (Jan 2017- March 2018) to Rp1,600 in March 2018, before pulling back to Rp1,130 in May 2018. We were one of the earliest starting to cover, and upgrading this stock back then. .

#2 Stock: One of the earliest to upgrade Sembcorp Marine in Feb-2017. Stock soared over 80% from S$1.535 to nearly S$2.80 in a year before pullback.

#3 Stock: Serba Dinamik has risen c.60% since our initiation in May-2017.

#4 Stock: Initiated CNOOC when stock price was HK$9.49 in Apr-2017. It has surged 53% to hit a high of HK$14.52 in May-2018.

Thematic Research Issued in last 12 months1) 09 May 2018 - Regional Oil & Gas: A shot in the arm for oil

2) 20 Jul 2017 - Shipyards: Creating Global Champions

3) 18 Jul 2017 - Regional Oil & Gas: Market rebalancing underway, despite shale

Industry: Energy

2017 Asiamoney:

3rd for Regional Energy

VOTE!

Ho Pei Hwa

Correctly called the strong oil price recovery since 2H-2017, and turned overweight on oil & gas/

offshore marine sector early

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Tiesha N PutriChong Tjen San

Most Notable Calls (2017-2018):

#1 Malaysian Construction Sector Report December 2017: Turned more cautious on the sector citing higher foreign participation from Chinese contractors and higher risk premium for the sector with the impending General Elections. This proved to be correct where construction stocks corrected significantly post elections.

#2 Indonesian Construction Sector Report July 2017 – Adjusting expectations. This was a non-consensus view report where we highlighted decelerating new contract growth and rising capital needs. We downgraded the sector to Neutral.

#3 Muhibbah Engineering : Stock has returned 39% since January 2017 where we continued to hiohlight the company’s unique positioning in various parts of the construction value chain and the fast growing Cambodian Airport concession which the market is assigning negligible value to

#4 PTPP: Our top pick PTPP outperformed JCI by 6% YTD

Industry: Regional

Construction/Infrastructure

Infrastructure

VOTE!

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Eun Young Lee

Industry:

Materials & Industrials

VOTE!

Trade war overshadows the sector’s outlook in near term, but we maintain positive long-

term view on some commodities. Hence, we believe share prices’ pullback may offer a

good entry point. We are bullish on long-term growth in copper consumption, while steel

sector would be well-disciplined thanks to China’s supply reform.

Top 2 Notable Calls (2H17-1H18):

#1 POSCO: Raised TP on 27 Oct 2017 and recommended as our top pick. The stock gained 21% for 3 month since then.

#2 Hyundai Steel : Recommended to accumulate it at the dip of share prices on 2 Apr as a key beneficiary of improving relations between two Koreas. The stock gained 36% for 1.5 month since our recommendation.

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“Unique Reports on (a) Digital Prism – An innovative framework to identify digital winners in the

Asian telecom sector” (b). Singapore Digital Transformation : Cherry-picking Pro-active Leaders and

Fast-Followers (c) Data Centre: M&As to accelerate in 2018 – Highlighting the ROIC of data centres

Sachin Mittal

Top 3 Notable Calls (2017-2018):

#1 Creative Technology: The stock rose over 100% on our note with revenue potential of new technology and a TP.

#2 StarHub : We highlighted Singtel BUY-Starhub SELL on 25 Jan 2018 and StarHub has declined 40% since then versus 10%decline at Singtel.

#3 M1 : M1 has remained stable since we upgraded the counter to a HOLD in April 2018 due to revenue share gains on the back ofCircles. Life!. The counter declined 8% from July 2017 to April 2018 throughout which we maintained a FULLY VALUED call.

Industry: Telecom &

Technology

(Software / Hardware)

VOTE!

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Patricia Yeung

Most Notable Calls (2017-2018):

#1 Stock: Initiated coverage on ENN Energy (2688 HK) as one of our top picks in Sept 2017. Share price rose 51% in

eight months, significantly outperformed the broad market

#2 Stock: Initiated coverage on China Gas (384 HK) with BUY rating in Sept 2017 and share price rose 37% in eight

months, better than the Hang Seng Index.

#3 Stock: Initiated coverage on Tian Lun Gas (1600 HK) with BUY rating in Feb 2018 and share price rose as much as 42% in five months, outperformed the broad market

Thematic Research Issued in last 12 months

1) 29 Jul 2017 - China Gas Utilities Sector: More upside in the re-rating cycle

Industry: Utilities

2017 Asiamoney:

3rd for Regional Utilities

VOTE!

Quah He WeiTony Wu

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