www.dbsvickers.com Ed: JS / sa: YM STI STI STI STI : 2,947 47 47 47.03 03 03 03 Analysts Janice CHUA +65 6682 3692 YEO Kee Yan +65 6682 3706 [email protected][email protected]LING Lee Keng +65 6682 3703 Singapore Research Team [email protected]Key Indices Current Current Current Current % Chng 1 day % Chng 1 day % Chng 1 day % Chng 1 day STI Index 2,947.03 -0.5% FS Small Cap Index 417.13 -0.3% USD/SGD Curncy 1.40 -0.6% Daily Volume (m) 1,562 Daily Turnover (S$m) 1,233 Daily Turnover (US$m) 878 Source: Bloomberg Finance L.P. Market Key Data – DBS Coverage (%) EPS Gth Div Yield 2014 7.2 3.9 2015F 2.8 3.9 2016F 8.7 4.0 (x) PER EV/EBITDA 2014 14.4 10.9 2015F 14.1 11.1 2016F 12.9 10.2 Source: DBS Bank Stock Picks Price ($) 8 Oct 15 Target Price ($) Rcmd Capitaland 3.02 3.73 Buy Ezion 0.70 1.00 Buy Frasers Centrepoint Trust 1.955 2.05 Buy Mapletree Greater China Commercial Trust* 0.955 1.12 Buy Pacific Radiance 0.370 0.42 Buy Riverstone Holdings 1.705 2.15 BUY Sheng Siong 0.845 1.00 Buy ST Engineering 3.16 3.40 Buy Thai Beverage 0.685 0.81 Buy Venture Corporation 8.11 9.00 Buy Sembcorp Industries 3.73 4.00 Buy Singapore Airlines 10.65 11.50 Buy Source: Bloomberg Finance L.P; DBS Bank DBS Group Research . Equity DBS Group Research . Equity DBS Group Research . Equity DBS Group Research . Equity 12 Oct 2015 Singapore Market Focus Singapore Strategy Refer to important disclosures at the end of this report Ride the bounce • Three key events to watch in October: MAS policy meeting, GDP and 3Q earnings report card • Preview of 3Q results – earnings cuts could continue • REITS offer temporary shelter; depressed valuations in oil and gas sector provide trading opportunities • Stay with stocks with earnings visibility, dividend upside potential and restructuring plays Three key events to watch. Asia and emerging markets rebounded strongly in the past week as rate hike expectations were pushed back. DBS Economist sees the initial FED lift off in 1Q16 (previously Dec 2015) and for rates to increase twice (instead of 4 times) in 2016. Closer home, the three important events that investors will be following closely in October are: (1) Singapore’s 3Q GDP which could point to a technical recession; (2) MAS could ease its monetary policy at its policy meeting; (3) 3Q reporting season which is unlikely to inspire. Market volatility is in full swing, this time to the upside. We maintain our near term STI trading range of 2750-3050 and 12-month target at 3200. 3Q preview : most sectors could disappoint except for transport. With macro uncertainties and the shadow of a technical recession in 3Q, investors are likely to cast a wary eye on the upcoming results season. For 3Q results, we will be keeping an eye on 1) provision and NPLs for banks; 2) margins for downstream consumer and plantation sectors and the rig builders; 3) forex impact on plantations and SREITs; and 4) contract rescheduling/cancellations for rig builders which could point to further downgrades for 2016. The only bright spot could come from better earnings from airlines/shipping, as we expect the positive impact of lower fuel costs to filter through. Select stocks with earnings visibility or dividend upside - Thai Bev, , Riverstone, Sheng Siong, Sembcorp Industries, ST Engineering, Capitaland, Singapore Airlines, and Venture Corporation. With the potential rate hike likely to be out of the way till 2016, REITS offer a temporary shelter for investors seeking yields. Our picks are stocks with sustainable growth - Mapletree Greater China Trust and Frasers Centrepoint Trust. Depressed valuations in oil/gas sector throw up trading opportunities. Oil prices are near the bottom and the risk is on the upside as we approach a seasonally stronger quarter on winter demand, while OPEC’s meeting on Dec 4 is the wild card. Valuations of oil and gas stocks are near their GFC lows. Among the small caps, we prefer companies which have lower refinancing risks and are better positioned to survive this downturn - Ezion and Pacific Radiance. Sembcorp Indu Sembcorp Indu Sembcorp Indu Sembcorp Industries stries stries stries is attractively priced, near its GFC trough valuation, its steady utility business should mitigate weakness from the marine sector.
15
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Source: Bloomberg Finance L.P. Market Key Data – DBS Coverage
(%) EPS Gth Div Yield
2014 7.2 3.9
2015F 2.8 3.9
2016F 8.7 4.0
(x) PER EV/EBITDA
2014 14.4 10.9
2015F 14.1 11.1
2016F 12.9 10.2
Source: DBS Bank Stock Picks
Price ($) 8 Oct 15
Target Price ($)
Rcmd
Capitaland 3.02 3.73 Buy
Ezion 0.70 1.00 Buy
Frasers Centrepoint Trust 1.955 2.05 Buy
Mapletree Greater China Commercial Trust*
0.955 1.12 Buy
Pacific Radiance 0.370 0.42 Buy
Riverstone Holdings 1.705 2.15 BUY
Sheng Siong 0.845 1.00 Buy
ST Engineering 3.16 3.40 Buy
Thai Beverage 0.685 0.81 Buy
Venture Corporation 8.11 9.00 Buy
Sembcorp Industries 3.73 4.00 Buy
Singapore Airlines 10.65 11.50 Buy
Source: Bloomberg Finance L.P; DBS Bank
DBS Group Research . Equity DBS Group Research . Equity DBS Group Research . Equity DBS Group Research . Equity
12 Oct 2015
Singapore Market Focus
Singapore Strategy
Refer to important disclosures at the end of this report
Ride the bounce • Three key events to watch in October: MAS policy
meeting, GDP and 3Q earnings report card
• Preview of 3Q results – earnings cuts could continue
• REITS offer temporary shelter; depressed valuations in oil and gas sector provide trading opportunities
• Stay with stocks with earnings visibility, dividend upside potential and restructuring plays
Three key events to watch. Asia and emerging markets
rebounded strongly in the past week as rate hike expectations were
pushed back. DBS Economist sees the initial FED lift off in 1Q16
(previously Dec 2015) and for rates to increase twice (instead of 4
times) in 2016. Closer home, the three important events that
investors will be following closely in October are: (1) Singapore’s
3Q GDP which could point to a technical recession; (2) MAS could
ease its monetary policy at its policy meeting; (3) 3Q reporting
season which is unlikely to inspire. Market volatility is in full swing,
this time to the upside. We maintain our near term STI trading
range of 2750-3050 and 12-month target at 3200.
3Q preview : most sectors could disappoint except for
transport. With macro uncertainties and the shadow of a technical
recession in 3Q, investors are likely to cast a wary eye on the
upcoming results season. For 3Q results, we will be keeping an eye
on 1) provision and NPLs for banks; 2) margins for downstream
consumer and plantation sectors and the rig builders; 3) forex
impact on plantations and SREITs; and 4) contract
rescheduling/cancellations for rig builders which could point to
further downgrades for 2016. The only bright spot could come
from better earnings from airlines/shipping, as we expect the
positive impact of lower fuel costs to filter through.
Select stocks with earnings visibility or dividend upside - Thai
Bev, , Riverstone, Sheng Siong, Sembcorp Industries, ST
Engineering, Capitaland, Singapore Airlines, and Venture
Corporation. With the potential rate hike likely to be out of the
way till 2016, REITS offer a temporary shelter for investors seeking
yields. Our picks are stocks with sustainable growth - Mapletree
Greater China Trust and Frasers Centrepoint Trust.
Depressed valuations in oil/gas sector throw up trading
opportunities. Oil prices are near the bottom and the risk is on
the upside as we approach a seasonally stronger quarter on winter
demand, while OPEC’s meeting on Dec 4 is the wild card.
Valuations of oil and gas stocks are near their GFC lows. Among
the small caps, we prefer companies which have lower refinancing
risks and are better positioned to survive this downturn - Ezion
and Pacific Radiance. Sembcorp InduSembcorp InduSembcorp InduSembcorp Industriesstriesstriesstries is attractively priced,
near its GFC trough valuation, its steady utility business should
mitigate weakness from the marine sector.
Market Focus
Singapore Strategy
Page 2
Market Outlook
Rate hike expectations have back paddled
FED Chair Janet Yellen had remarked that FED funds rate will
likely rise later this year even as she left interest rates
unchanged at the September FOMC meeting. But chances are
she will have to flip the ‘prediction’ again after September’s
non-farm payrolls rose by a much weaker than expected 142k
(consensus 203k) and hourly wages fell. Job growth at goods
producing industries has slumped since March and payrolls at
the service sector have tumbled in recent months.
Our economist believes that with the weak jobs number, soft
core capex orders and core PCE inflation that has been falling
for 3.5 years, the FED will delay raising rates. DBS Research DBS Research DBS Research DBS Research
sees the initial FED lift off in 1Q16 (previously December sees the initial FED lift off in 1Q16 (previously December sees the initial FED lift off in 1Q16 (previously December sees the initial FED lift off in 1Q16 (previously December
2015) and for rates to increase just twice (instead of 4 times) 2015) and for rates to increase just twice (instead of 4 times) 2015) and for rates to increase just twice (instead of 4 times) 2015) and for rates to increase just twice (instead of 4 times)
in 2016, implying a gradual climb.in 2016, implying a gradual climb.in 2016, implying a gradual climb.in 2016, implying a gradual climb.
US non-farm payrolls
0
50
100
150
200
250
300
350
400
450
1/1/2011
4/1/2011
7/1/2011
10/1/2011
1/1/2012
4/1/2012
7/1/2012
10/1/2012
1/1/2013
4/1/2013
7/1/2013
10/1/2013
1/1/2014
4/1/2014
7/1/2014
10/1/2014
1/1/2015
4/1/2015
7/1/2015
Source: DBS Bank
Core PCE inflation
0.7
0.9
1.1
1.3
1.5
1.7
1.9
2.1
2.3
10
/1/2
01
0
1/1
/20
11
4/1
/20
11
7/1
/20
11
10
/1/2
01
1
1/1
/20
12
4/1
/20
12
7/1
/20
12
10
/1/2
01
2
1/1
/20
13
4/1
/20
13
7/1
/20
13
10
/1/2
01
3
1/1
/20
14
4/1
/20
14
7/1
/20
14
10
/1/2
01
4
1/1
/20
15
4/1
/20
15
7/1
/20
15
10
/1/2
01
5
Source: DBS Bank
Closer home, 3 keys events to watch out for in October
The three important events that investors will be following
closely in October in Singapore are:
Risk of technical rRisk of technical rRisk of technical rRisk of technical recessionecessionecessionecession
(1) Singapore’s 3Q GDP to be released on 14 Oct could point (1) Singapore’s 3Q GDP to be released on 14 Oct could point (1) Singapore’s 3Q GDP to be released on 14 Oct could point (1) Singapore’s 3Q GDP to be released on 14 Oct could point
to a technical recession to a technical recession to a technical recession to a technical recession –––– Current consensus is for the figure
to come in at -0.1% saar q-o-q. Our Singapore economist
expects a more negative 0.6% q-o-q contraction for 3Q,
which implies a technical recession after the 4% decline in
2Q15. The manufacturing sector is already in recession,
having contracted the past 3 quarters in y-o-y terms and in 3
out of the past 5 quarters on a sequential basis. The outlook
for the services sector is not strong. Growth moderated to
3.5% YoY in 2Q15, from 4.2% in 1Q. On a sequential basis,
output fell by 1.1% (QoQ, saar) in 2Q. DBS Research forecasts DBS Research forecasts DBS Research forecasts DBS Research forecasts
1.8% y1.8% y1.8% y1.8% y----oooo----y GDP growth for 2015 and 2.1% for 2016y GDP growth for 2015 and 2.1% for 2016y GDP growth for 2015 and 2.1% for 2016y GDP growth for 2015 and 2.1% for 2016, which
is below the official and market consensus forecasts of 2.0-
2.5% and 2.2% respectively.
Singapore GDP
Source: DBS Bank
… and MAS could ease its monetary policy … and MAS could ease its monetary policy … and MAS could ease its monetary policy … and MAS could ease its monetary policy
(2) MAS policy meeting on 14 OctMAS policy meeting on 14 OctMAS policy meeting on 14 OctMAS policy meeting on 14 Oct – With risk of a technical
recession looming and headline CPI reading in negative
territory for 10 consecutive months since November 2014, the
probability has risen that MAS will ease monetary policy at the
upcoming policy meeting and macroeconomic review.
Singapore CPI (% y-o-y)
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
Source: DBS Bank
The SGD NEER has been easing towards the floor of its ap-
preciating policy band. If this continues, our Singapore
economist believes that the MAS will have two options: spend
reserves defending the band or relax its policy.
Market Focus
Singapore Strategy
Page 3
Currency appreciation becomes a difficult policy to maintain in
the current environment whereby recession risk looms and
full-year inflation is expected to be negative. DBS Research
expects the MAS to re-center the SGD NEER policy band lower
by half a band, which by our model would be equivalent to a
one-off devaluation of 2%. The DBS Macro Research team
expects the SGD to depreciate to 1.47 per US dollar over the
next 12 months.
SGD Neer testing the lower limit
Source: DBS Bank
3Q reporting season unlikely to inspire3Q reporting season unlikely to inspire3Q reporting season unlikely to inspire3Q reporting season unlikely to inspire
(3) 3Q results season3Q results season3Q results season3Q results season – The 3Q results season spans from
October till mid-November. The continuation in earnings
downgrades since the start of the year had led to a slash in
FY15F growth forecast from +13.4% (at the start of the year)
down to +2.8% for stocks under our coverage. With a
technical recession on the cards and growth uncertainties
unlikely to go away anytime soon, we continue to expect
further downgrades following the 3Q results season. This is
especially so for FY16, given the high single digit 7.7% EPS
growth forecast.
3Q results preview
Attention turns towards the earnings season that is about to
start. With macro uncertainties and the shadow of a technical
recession in 3Q, investors are likely to cast a wary eye on the
upcoming results season. Growth uncertainties had led to a
downward revision in EPS growth for FY15F from a strong
double digit 13.4% at the end of last year to a mere 2.8%
currently. We expect STI index component stocks to post a
decline in earnings this year. The earnings downgrade trend
could continue given the uncertain economic outlook,
especially for FY16F where growth expectations remains at a
Strategy Asia/emerging markets not out of the woods despite
current rebound
Asia and emerging markets rebounded strongly over the
past week as rate hike expectations were pushed back
following the weak US September job numbers. This led to
a rebound in regional currencies against the USD and
oil/commodity prices. In turn, a partial reversal of the funds
outflow that had weighed down on Asia and emerging
markets in recent months was triggered. Short covering and
bargain hunting on oversold stocks look to be the forces
behind the current strength. The rebound has been sharp,
with the MSCI Emerging Markets Index and MSCI South-
East Asia Index rising 6.2% and 10% respectively last week.
For now, “bad news is good news”. But there is a limit to
such an argument justifying the stock market rally in Asia.
The FED is pushing back, not doing away with normalising
interest rates. Not for now, but rate hike concerns will
return to haunt the markets at another date. Sooner or
later depends on incoming economic data.
Next, emerging market and China uncertainties were cited
as one of the reasons why the FED had withheld rate hikes.
Asia’s growth is slowing down and corporate earnings
continue to be on the decline.
While we do not see a repeat of last week’s feat and any
further upside over the next month or two should occur on
a much more gradual pace, any pullbacks should be above
the recent lows underpinned by the desire to bargain hunt
and possible year-end ‘window dressing’ activities.
Government stimuli around the region have also helped to
stabilise the sharp stock market downswing.
Government stimulus announced over the past 3 months
China • Yuan devaluation – Aug15 • Cut in lending, deposit and RRR • Cooling property measures including lowering down payment for second home
buyers, waived transaction tax for sellers after home ownership of two years, easier terms for borrowers
• Proactive fiscal policy e.g. increased infrastructure spending, more public private partnership investment, and faster reforms of areas such as taxation.
• Measures to boost stock market e.g. proposed a “circuit breaking mechanism”, scrap China’s dividend tax on investors who hold a stock for more than a year etc.
Malaysia RM28 bn stimulus package:- • RM20 bn for the stock market to support undervalued shares • RM4.5 bn for integrated development of hotel and theme park in Desaru
Coast • RM2 bn for small and medium enterprises • Balance for tourism sector, Domestic Investment Strategic Fund etc
• 60 bn baht loan to low-income earners • 36 bn baht for small construction and repair projects that employ locals. • 40 bn baht to speed up existing and new small government projects.
206 bn baht stimulus package (phase 2) to support SME which includes a cut in the corporate income tax
Indonesia • First Stimulus package (announced early September): Aim to improve policies and regulations, accelerate infrastructure projects and government spending, and investments in property.
• Second Stimulus package (announced late September): include measures aim at streamlining regulations and processes to attract investments; tax incentives for exporters to keep their export proceed in Indonesia.
• Third Stimulus package (announced in October): Measures include relaxation of regulation for banks, lowering interest rates on loans and providing easier access, giving electricity tariff discounts and cutting fuel prices.
Source: DBS Bank
STI valuation - testing the upside
With reference to our previous Singapore strategy report
dated 31st August, the base-case range of 2750 to 3050
worked out very well thus far with the STI rebounding sharply
off the 2740 low in late September. Recap that the 3050
upside was based on 5% below our revised bottom-up 12-
month STI target of 3200.
Market volatility is in full swing, this time to the upside. While
an overshoot towards 3100 cannot be ruled out, we are
inclined to keep the 3050 cap. This is based on the 5% below
bottom-up STI target as well as 12.22x (-1SD) 12-mth forward
PE, given the likelihood that corporate earnings downgrade
REITs offer temporary shelter The weakness in jobs data from the US prompted DBS economists to revise our forecast for the FED to postpone their rate lift-off to 1Q16 (from Dec’15) and subsequent hikes to be more modest (2 more in 2016 vs 4 previously). The 10-year UST and 10-year SG bonds have retreated by 30-40bps from year highs. This is a positive boost for S-REITs in the shorter term, benefitting big caps (like CapitaLand Mall TrustCapitaLand Mall TrustCapitaLand Mall TrustCapitaLand Mall Trust, , , , CapitaLand Commercial TrustCapitaLand Commercial TrustCapitaLand Commercial TrustCapitaLand Commercial Trust, , , , Mapletree Industrial TrustMapletree Industrial TrustMapletree Industrial TrustMapletree Industrial Trust, , , , Mapletree Commercial TrustMapletree Commercial TrustMapletree Commercial TrustMapletree Commercial Trust, , , , Keppel REITKeppel REITKeppel REITKeppel REIT, , , , Suntec REITSuntec REITSuntec REITSuntec REIT). S-REITs currently offer an average FY16F yield of 7.0% and with yield spreads of 4.7% at close to its – 1 SD range, we see a comfortable buffer for investors to add at current levels.
Prefer REITs with sustainable growthPrefer REITs with sustainable growthPrefer REITs with sustainable growthPrefer REITs with sustainable growth; picks : ; picks : ; picks : ; picks : Mapletree Mapletree Mapletree Mapletree Greater China Commercial TrustGreater China Commercial TrustGreater China Commercial TrustGreater China Commercial Trust, , , , Frasers Centrepoint TrustFrasers Centrepoint TrustFrasers Centrepoint TrustFrasers Centrepoint Trust and and and and CapitaLand Retail China TrustCapitaLand Retail China TrustCapitaLand Retail China TrustCapitaLand Retail China Trust.... While we expect operational headwinds and have cut back our growth assumptions, REITS are more resilient and offer better earnings growth at 6.2% vs -2% for STI components in 2015. Among the sub-sectors, retail REITS are likely to outperform given strong foot traffic and sustained tenant sales. In our view, hospitality REITS could face weakness in 3Q results with rising competition. We are selective and favour stocks with sustainable growth - MAMAMAMAGGGGIC IC IC IC and FCTFCTFCTFCT. We also believe that CRCTCRCTCRCTCRCT, trading at 7.9% forward yield, is attractive.
PE (x)PE (x)PE (x)PE (x) P/B (x)P/B (x)P/B (x)P/B (x) Div Yld Div Yld Div Yld Div Yld GrowthGrowthGrowthGrowth
Source: DBS Bank
* FY16 & 17 forecast
Market Focus
Singapore Strategy
Page 14
DBS Bank recommendations are based an Absolute Total Return* Rating system, defined as follows:
STRONG BUYSTRONG BUYSTRONG BUYSTRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)
BUY BUY BUY BUY (>15% total return over the next 12 months for small caps, >10% for large caps)
HOLDHOLDHOLDHOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)
FULLY VALUEDFULLY VALUEDFULLY VALUEDFULLY VALUED (negative total return i.e. > -10% over the next 12 months)
SELL SELL SELL SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)
Share price appreciation + dividends
GENERAL DISCLOSURE/DISCLAIMER GENERAL DISCLOSURE/DISCLAIMER GENERAL DISCLOSURE/DISCLAIMER 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 judgement 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, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months.
ANALANALANALANALYST CERTIFICATIONYST CERTIFICATIONYST CERTIFICATIONYST CERTIFICATION The research analyst 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 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 the date the report is published, the analyst and his/her spouse and/or relatives who are financially dependent on the analyst, do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities).
COMPANYCOMPANYCOMPANYCOMPANY----SPECIFIC / REGULATORY DISCLOSURES SPECIFIC / REGULATORY DISCLOSURES SPECIFIC / REGULATORY DISCLOSURES SPECIFIC / REGULATORY DISCLOSURES
1.1.1.1. DBS Bank Ltd., DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”), their subsidiaries and/or other affiliates do not have a proprietary position in the securities recommended in this report as of 31 Aug 2015 except CapitaLand, CapitaLand Commercial Trust, CapitaLand Mall Trust, CapitaLand Retail China Trust, City Development, Cosco Corporation, Ezion Holdings, Ezra Holdings, Frasers Centrepoint Trust, Keppel Corporation, Keppel REIT, M1, Mapletree Commercial Trust, Mapletree Greater China Commercial Trust, Mapletree Industrial Trust, Neptune Orient Lines, OCBC, Sembcorp Industries, Sembcorp Marine, Singapore Airlines, SPH, ST Engineering, StarHub, Suntec REIT, Thai Beverage Public Company, Triyards Holdings, UOB, Venture Corporation , Wilmar International, Yangzijiang Shipbuilding
2.2.2.2. DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates may beneficially own a total of 1% of any class of common equity securities of the company mentioned as of 31 Aug 2015.
Market Focus
Singapore Strategy
Page 15
3.3.3.3. Compensation for investment banking servicCompensation for investment banking servicCompensation for investment banking servicCompensation for investment banking services:es:es:es: DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates have received compensation, within the past 12 months, and within the next 3 months may receive or intends to seek compensation for investment banking services from Keppel Corporation, Ezra Holdings.
DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a manager or co-manager 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.
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