Model Portfolio - DBS Bank The Blue Chips category has 6 stocks - Ascendas REIT, Capitaland , City...
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1 sa: JC 11 February, 2016 Singapore Research Team [email protected] DBS Group Research . Equity Singapore Traders Spectrum Model Portfolio Refer to important disclosures at the end of this report Conservative We start the Conservative portfolio with 4 stocks - Frasers Centrepoint Trust, Sheng Siong, Thai Beverage and ST Engineering. These stocks are selected because of their resilient businesses, stable dividend payout and viewed as a 'safe-haven' amid the current macro economic uncertainties. Balanced We start the Balanced portfolio with 6 stocks - Frasers Centrepoint Limited, AREIT, Venture Corp, SIA Engineering, Mapletree Commercial Trust and ARA Asset Management. The higher number of stocks compared to the Growth and Conservative portfolios reflects the opportunities that have emerged with the stock market decline in recent months in the current uncertain macro economic environment.These stocks offer either higher dividend payout, potential earnings catalyst or both. Growth We start the Growth portfolio with just 2 picks - SembCorp Industries and Japfa Ltd. The lowest number of stocks in the portfolio reflects our cautious stance on corporate earnings growth in the current uncertain macro economic environment. Price Target Div (S$) Price upside P/E (x) Yld (%) 10-Feb ($) (%) FY16F FY16F FY17F FY15 Conservative Frasers Centrepoint Trust 1.90 2.04 7.6 17.4 (2.0) 1.6 6.1 Sheng Siong Group 0.845 1.01 19.8 20.9 8.6 0.5 4.0 Thai Beverage 0.68 0.82 21.9 17.1 (4.9) 7.5 3.7 ST Engineering 2.69 3.60 33.8 15.6 0.9 1.6 5.6 Company EPS Growth (%) Price Target Div (S$) Price upside P/E (x) Yld (%) 10-Feb ($) (%) FY16F FY16F FY17F FY15 Growth SembCorp Inds 2.46 3.50 42.3 7.0 18.3 6.3 6.6 Japfa 0.49 0.90 83.7 7.8 76.4 57.7 - Company EPS Growth (%) Price Target Div (S$) Price upside P/E (x) Yld (%) 10-Feb ($) (%) FY16F FY16F FY17F FY15 Balanced Frasers Centrepoint Ltd 1.63 2.05 25.6 7.9 23.6 4.1 5.3 Ascendas REIT 2.33 2.52 8.0 15.8 8.4 1.0 6.4 Venture 7.96 9.00 13.1 12.6 11.8 6.9 6.3 SIA Engineering 3.46 3.84 11.0 21.7 (0.5) 4.1 5.1 Mapletree Commercial Trust 1.34 1.40 4.2 16.7 4.3 3.7 6.1 ARA Asset Mgt 1.055 1.57 48.9 12.7 (7.3) 4.0 4.7 Company EPS Growth (%)
Transcript of Model Portfolio - DBS Bank The Blue Chips category has 6 stocks - Ascendas REIT, Capitaland , City...
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sa: JC
11 February, 2016
Singapore Research Team
DBS Group Research . Equity
Singapore Traders Spectrum
Model Portfolio
Refer to important disclosures at the end of this report
Conservative
We start the Conservative portfolio with 4 stocks - Frasers Centrepoint Trust, Sheng Siong, Thai Beverage and ST Engineering. These stocks are selected because of their resilient businesses, stable dividend payout and viewed as a 'safe-haven' amid the current macro economic uncertainties.
Balanced We start the Balanced portfolio with 6 stocks - Frasers Centrepoint Limited, AREIT, Venture Corp, SIA Engineering, Mapletree Commercial Trust and ARA Asset Management. The higher number of stocks compared to the Growth and Conservative portfolios reflects the opportunities that have emerged with the stock market decline in recent months in the current uncertain macro economic environment.These stocks offer either higher dividend payout, potential earnings catalyst or both.
Growth We start the Growth portfolio with just 2 picks - SembCorp Industries and Japfa Ltd. The lowest number of stocks in the portfolio reflects our cautious stance on corporate earnings growth in the current uncertain macro economic environment.
Pri c e Ta rge t Div
(S$) Pric e ups ide P/E (x) Yld (%)
10-Fe b ($) (%) FY16F FY16F FY17F FY15
Conse rva tive
Frasers Centrepoint Trust 1.90 2.04 7.6 17.4 (2.0) 1.6 6.1
Sheng Siong Group 0.845 1.01 19.8 20.9 8.6 0.5 4.0
Thai Beverage 0.68 0.82 21.9 17.1 (4.9) 7.5 3.7
ST Engineering 2.69 3.60 33.8 15.6 0.9 1.6 5.6
Compa ny EPS Growth (%)
Pric e Ta rge t Div
(S$) Pric e ups ide P/E (x) Yld (%)
10-Fe b ($) (%) FY16F FY16F FY17F FY15
Growth
SembCorp Inds 2.46 3.50 42.3 7.0 18.3 6.3 6.6
Japfa 0.49 0.90 83.7 7.8 76.4 57.7 -
Compa ny EPS Growth (%)
Pri c e Ta rge t Div
(S$) Pric e ups ide P/E (x) Yld (%)
10-Fe b ($) (%) FY16F FY16F FY17F FY15
Ba la nce d
Frasers Centrepoint Ltd 1.63 2.05 25.6 7.9 23.6 4.1 5.3
Ascendas REIT 2.33 2.52 8.0 15.8 8.4 1.0 6.4
Venture 7.96 9.00 13.1 12.6 11.8 6.9 6.3
SIA Engineering 3.46 3.84 11.0 21.7 (0.5) 4.1 5.1
Mapletree Commercial Trust 1.34 1.40 4.2 16.7 4.3 3.7 6.1
ARA Asset Mgt 1.055 1.57 48.9 12.7 (7.3) 4.0 4.7
Compa ny EPS Growth (%)
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Model Portfolio
# addition ^ removed
Source for all data: DBS Bank, Bloomberg Finance L.P.
Singapore Traders Spectrum
Blue Chips The Blue Chips category has 6 stocks - Ascendas REIT, Capitaland, City Developments, ST Engineering, Wilmar and SembCorp Industries. Dividend We have a list of 9 dividend stocks that we like that investors can select from. The are Frasers Centrepoint Ltd, Ascendas REIT, Venture Corp, SIA Engineering, Frasers Centrepoint Trust, Mapletree Commercial Trust, Sheng Siong, ST Engineering and ARA.
Pri c e Ta rge t Div
(S$) Pric e ups ide P/E (x) Yld (%)
10-Fe b ($) (%) FY16F FY16F FY17F FY15
Blue Chips
Ascendas REIT 2.33 2.52 8.0 15.8 8.4 1.0 6.4
CapitaLand 2.90 3.73 28.6 16.2 6.6 21.0 2.8
City Dev 6.93 10.26 48.1 10.2 6.0 4.2 1.8
ST Engineering 2.69 3.60 33.8 15.6 0.9 1.6 5.6
Wilmar 2.97 3.70 24.6 12.3 2.3 6.7 1.5
Sembcorp Inds 2.46 3.50 42.3 7.0 18.3 6.3 6.6
Compa ny EPS Growth (%)
Pric e Ta rge t Div
(S$) Pric e ups ide P/E (x) Yld (%)
10-Fe b ($) (%) FY16F FY16F FY17F FY15
Divide nd
Frasers Centrepoint Ltd 1.63 2.05 25.6 7.9 23.6 4.1 5.3
Ascendas REIT 2.33 2.52 8.0 15.8 8.4 1.0 6.4
Venture 7.96 9.00 13.1 12.6 11.8 6.9 6.3
SIA Engineering 3.46 3.84 11.0 21.7 (0.5) 4.1 5.1
Frasers Centrepoint Trust 1.90 2.04 7.6 17.4 (2.0) 1.6 6.1
Mapletree Commercial Trust 1.34 1.40 4.2 16.7 4.3 3.7 6.1
Sheng Siong Group 0.85 1.01 19.8 20.9 8.6 0.5 4.0
ST Engineering 2.69 3.60 33.8 15.6 0.9 1.6 5.6
ARA Asset Mgt 1.06 1.57 48.9 12.7 (7.3) 4.0 4.7
Compa ny EPS Growth (%)
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Price: S$1.900 TP: S$2.04 Upside: 7.6%Entry date: 10-Feb-16 Entry price ($): S$1.900Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Price: S$0.85 TP: S$1.01 Upside: 19.8%Entry date: 10-Feb-16 Entry price ($) S$0.85Days passed 1 Dividend received S$0.000% gain/(loss) 0.0% % chg relative to STI: 0%
Company Guide
Price: S$0.675 TP: S$0.82 Upside: 21.9%Entry date: 10-Feb-16 Entry price ($) S$0.675Days passed 1 Dividend received S$0.000% gain/(loss) 0.0% % chg relative to STI: 0%
Company Guide
Price: S$2.69 TP: S$3.60 Upside: 33.8%Entry date: 10-Feb-16 Entry price ($): S$2.69Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Singapore Traders Spectrum
Model Portfolio
Conservative
Your investment goal is to seek income while protecting your capital. You accept a fairly stable stock price fluctuation with a moderate level of dividend income. The investment horizon is up to 12 months.
1) Strong earnings resilience amongst REITs with downside risk protection2) Upside to earnings growth from AEI on major asset (northpoint)3) Yields of 6.5% atttractive
Frasers Centrepoint Trust
Sector: REITs
Sheng Siong Group is on track towards its 50-store target; margin expansion trend is performing to our expectations. Dividend continues to be attractive at c.4% based on FY16F DPS of 3.6 Scts.
ST Engineering Steady earnings and dividends provide safe haven in current uncertain and volatile market environment. Final dividends to be announced soon. Smart city contracts may be upcoming. Sector: Industrial
Sheng Siong Group
Sector: Consumer Services
Thai Beverage Thai Bev is taking steps to transform into a regional beverage player. It should have an advantage over its peers given its dominant position as the leading spirits player in Thailand. Sector: Consumer
Services
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Sector: Real Estate
Price: S$1.630 TP: S$2.05 Upside: 25.6%Entry date: 10-Feb-16 Entry price ($): S$1.630Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Sector: REIT
Price: S$2.330 TP: S$2.52 Upside: 8.0% 8.0%Entry date: 10-Feb-16 Entry price ($): S$2.330Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Price: S$7.960 TP: S$9.00 Upside: 13.1%Entry date: 10-Feb-16 Entry price ($) S$7.96Days passed 1 Dividend received S$0.000% gain/(loss) 0.0% % chg relative to STI: 0%
Company Guide
Price: S$3.46 TP: S$3.84 Upside: 11.0%Entry date: 10-Feb-16 Entry price ($): S$3.46Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Price: S$1.340 TP: S$1.40 Upside: 4.2%Entry date: 10-Feb-16 Entry price ($) S$1.34Days passed 1 Dividend received S$0.000% gain/(loss) 0.0% % chg relative to STI: 0%
Company Guide
Singapore Traders Spectrum
Model Portfolio
Balance`Your investment goal is a balance between capital growth and income. You can tolerate some fluctuations in the value of your stock investment in anticipation of a higher return. The investment horizon is up to 12 months.Frasers Centrepoint Ltd 1) Higher recurring earnings base at close to 70% of topline offer good
earnings stability2) Potential asset sales to listed REITs to be positive catalyst
Ascendas REIT
Venture
Sector: Industrial
High yields of 7.0% close to -1SD level. Strongest earnings growth amongst the large cap REITs
Attractive at 13x 1-year forward PER and 6.2% yield. Big beneficiary of strong USD as 99% of sales in USD to US and Europe while benefitting at the same time from weak Ringgit as 60% of manufacturing cost is based in Malaysia
SIA Engineering Worst could be over on the earnings front. Possibility of special dividends around the corner. Better entry point now.
Sector: Industrial
Mapletree Commercial Trust
One of the strongest DPU growth amongst the commercial REITS. Yields of 6.5% is attractive.
Sector: REIT
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Price: S$1.06 TP: S$1.57 Upside: 48.9%Entry date: 10-Feb-16 Entry price ($): S$1.06Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Singapore Traders Spectrum
Model Portfolio
Balance`Your investment goal is a balance between capital growth and income. You can tolerate some fluctuations in the value of your stock investment in anticipation of a higher return. The investment horizon is up to 12 months.
ARA Asset Mgt Attractive valuations and yield of c.4% to 5%. ARA has S$150m war chest, and is well positioned to capture opportunities that may arise in 2016.
Sector: Financials
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Price: S$2.46 TP: S$3.50 Upside: 42.3%Entry date: 10-Feb-16 Entry price ($): S$2.46Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Price: S$0.49 TP: S$0.90 Upside: 83.7%Entry date: 10-Feb-16 Entry price ($): S$0.49Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Your primary investment goal is capital growth. You can tolerate a fair amount of fluctuations in the value of your stock investment in anticipation of possible higher returns. The investment horizon is up to 12 months.
SembCorp Inds Stripping out market capitalisation of SMM and Salalah, utilities business is valued at unjustifiably low valuation of 5x PE and 0.5x PB. We also expect the reversal of price trend in the event of elimination of SMM privatisation overhang.Sector: Oil & Gas
Japfa Beneficiary of rising DOC/broiler prices in Indonesia, stable IDR, aggressive expansion in Vietnam, stabilising raw milk prices in China
Sector: Consumer Goods
Singapore Traders Spectrum
Model Portfolio
Growth
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Sector: REIT
Price: S$2.330 TP: S$2.52 Upside: 8.0% 0.0%Entry date: 10-Feb-16 Entry price ($): S$2.330Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Price: S$2.90 TP: S$3.73 Upside: 28.6%Entry date: 10-Feb-16 Entry price ($): S$2.90Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Sector: Real EstatePrice: S$6.930 TP: S$10.26 Upside: 24.6%Entry date: 10-Feb-16 Entry price ($): S$6.930Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Price: S$2.69 TP: S$3.60 Upside: 33.8%Entry date: 10-Feb-16 Entry price ($): S$2.69Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Price: S$2.970 TP: S$3.70 Upside: 24.6%Entry date: 10-Feb-16 Entry price ($) S$2.970Days passed 1 Dividend received S$0.000% gain/(loss) 0.0% % chg relative to STI: 0%
Company Guide
High yields of 7.0% close to -1SD level. Strongest earnings growth amongst the large cap REITs
Singapore Traders Spectrum
Model Portfolio
Blue Chips
CapitaLand
Sector: Real Estate
City Dev 1) Incremental earnings growth momentum boosted by asset sales/ stronger operational results from commercial portfolio2) Valuations below historical through level
Wilmar Beneficiary of low soybean prices, Indonesia's export tax structure, biodiesel mandate and rising palm oil prices
Sector: Consumer Goods
1) Incremental earnings growth momentum from its core residential, retail mall business and Ascott firming up well2) Upside to valuations from potential asset recycling of mature assets into funds/REITs3) Attractive valuations at close to 2009 levels
ST Engineering Steady earnings and dividends provide safe haven in current uncertain and volatile market environment. Final dividends to be announced soon. Smart city contracts may be upcoming.
Sector: Industrial
You look to include blue chips into your portfolio to provide steady growth over a longer time period. Blue chips tend to be more stable and their holding period can extend beyond a year.
Ascendas REIT
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Price: S$2.460 TP: S$3.50 Upside: 42.3%Entry date: 03-Aug-15 Entry price ($) S$2.46Days passed 192 Dividend received S$0.000% gain/(loss) 0.0% % chg relative to STI: 0%
Company Guide
Singapore Traders Spectrum
Model Portfolio
Blue Chips
You look to include blue chips into your portfolio to provide steady growth over a longer time period. Blue chips tend to be more stable and their holding period can extend beyond a year.
SembCorp Inds Stripping out market capitalisation of SMM and Salalah, utilities business is valued at unjustifiably low valuation of 5x PE and 0.5x PB. We also expect the reversal of price trend in the event of elimination of SMM privatisation overhang.Sector: KehĂ"ĂC]o
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Price: S$1.63 TP: S$2.05 Upside: 25.6%Entry date: 10-Feb-16 Entry price ($): S$1.63Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Sector: REIT
Price: S$2.330 TP: S$2.52 Upside: 8.0% 0.0%Entry date: 10-Feb-16 Entry price ($): S$2.330Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Price: S$7.960 TP: S$9.00 Upside: 0.0%Entry date: 10-Feb-16 Entry price ($) S$7.96Days passed 1 Dividend received S$0.000% gain/(loss) 0.0% % chg relative to STI: 0%
Company Guide
Price: S$3.46 TP: S$3.84 Upside: 0.0%Entry date: 10-Feb-16 Entry price ($): S$3.46Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Sector: REITs
Price: S$1.900 TP: S$2.04 Upside: 0.0%Entry date: 10-Feb-16 Entry price ($): S$1.900Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Frasers Centrepoint Ltd 1) Higher recurring earnings base at close to 70% of topline offer good earnings stability2) Potential asset sales to listed REITs to be positive catalyst
Sector: Real Estate
Venture
Sector: Industrial
SIA Engineering Worst could be over on the earnings front. Possibility of special dividends around the corner. Better entry point now.
Sector: Industrial
Attractive at 13x 1-year forward PER and 6.2% yield. Big beneficiary of strong USD as 99% of sale in USD to US and Europe while benefitting at the same time from weak Ringgit as 60% of manufacturing cost is based in Malaysia
Singapore Traders Spectrum
Model Portfolio
Dividend
Income investing is part of your stock picking strategies. You look to include dividend stocks into your portfolio to provide a steady income stream.
Ascendas REIT High yields of 7.0% close to - 1SD level. Strongest earnings growth amongst the large cap REITs
1) Strong earnings resilience amongst REITs with downside risk protection2) Upside to earnings growth from AEI on major asset (northpoint)3) Yields of 6.5% atttractive
Frasers Centrepoint Trust
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Price: S$1.340 TP: S$1.40 Upside: 0.0%Entry date: 10-Feb-16 Entry price ($) S$1.34Days passed 1 Dividend received S$0.000% gain/(loss) 0.0% % chg relative to STI: 0%
Company Guide
Price: S$0.85 TP: S$1.01 Upside: 0.0%Entry date: 10-Feb-16 Entry price ($) S$0.85Days passed 1 Dividend received S$0.000% gain/(loss) 0.0% % chg relative to STI: 0%
Company Guide
Price: S$2.69 TP: S$3.60 Upside: 0.0%Entry date: 10-Feb-16 Entry price ($): S$2.69Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Price: S$1.06 TP: S$1.57 Upside: 0.0%Entry date: 10-Feb-16 Entry price ($): S$1.06Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0% % chg relative to STI: 0%
Company Guide
Income investing is part of your stock picking strategies. You look to include dividend stocks into your portfolio to provide a steady income stream.
Singapore Traders Spectrum
Model Portfolio
Dividend
ST Engineering Steady earnings and dividends provide safe haven in current uncertain and volatile market environment. Final dividends to be announced soon. Smart city contracts may be upcoming. Sector: Industrial
ARA Asset Mgt Attractive valuations and yield of c.4% to 5%. ARA has S$150m war chest, and is well positioned to capture opportunities that may arise in 2016.
Sector: Financials
Mapletree Commercial Trust
One of the strongest DPU growth amongst the commercial REITS. Yields of 6.5% is attractive.
Sector: REIT
Sheng Siong Group SSG is on track towards its 50-store target; margin expansion trend is performing to our expectations. Dividend continues to be attractive at c.4% based on FY16F DPS of 3.6 Scts.Sector: Consumer
Services
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Singapore Traders Spectrum
Model Portfolio
DBS Bank 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 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 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 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, 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 Feb 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, City Development, Frasers Centrepoint Trust, Mapletree Commercial Trust, Sembcorp Industries, Sheng Siong Group, SIA Engineering, ST Engineering, Thai Beverage Public Company, Venture Corporation, Wilmar International recommended in this report as of 31 Jan 2016.
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 ARA Asset Management, Ascendas REIT as of 31 Jan 2016.
DBS Bank Ltd., DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of securities for ARA Asset Management, Ascendas REIT in the past 12 months, as of 31 Jan 2016.
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.
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 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.
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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
