12/01/2015 Singapore Traders Spectrum

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

DBS Group Research . Equity

12 Jan 2015

KEY POINTS  



STI bounces off 3267 short-term low, heading into 4Q results season United States Oil Fund (BB ticker USO US) ETF offers exposure for SIP qualified traders looking for possible short-term reversal trade in oil price Singapore property developers with higher % of RNAV exposure to Singapore residential properties could underperform: Wheelock, CityDev, Wing Tai, Ho Bee

Wired Weekly STI mid-week reversal off the 3267 level was within our expectation as the low point coincided closely with 13x (0.5SD) 12-mth forward PE at 3250. With the start of the 4Q results season, we expect the STI to hold at 3300, which is above last week’s low of 3267. Brent crude reached as low as USD50/bbl last week. We maintain our view that the precipitous downward decline in the oil price will end soon or may even have ended. SIPqualified investors who want to look at a short-term reversal trade can turn to the United States Oil Fund ETF whose underlying is the WTI oil price futures. The recent positive divergence that we highlighted between O&G stocks and oil price has continued. Our picks in the O&G sector are Ezion and Pacific Radiance. Between the two, Ezion turned price-action leader as it rose above its late December high of $1.16. Technically, we see upside to $1.26. Beyond this, the next level is $1.35. Near-term support is around $1.185. While the latest 18bps SIBOR increase is unlikely to rattle most home owners with mortgage loans, the concern is that interest rates will rise further if the FED starts to raise rates later this year. Rising mortgage rates add to uncertainty for the Singapore residential property market that will see a surplus in housing units over the next three years. For home owners holding investment properties, the effect could well be a “double whammy” of higher mortgage rates and falling rental yields. Fortunately, most developers have substantially “derisked” their Singapore residential exposure. Ceteris paribus, developers with double digit % RNAV exposure to Singapore residential property segment such as Wheelock (30%), City Dev (27%), Wing Tai (19%) and Ho Bee (15%) could underperform.

Yeo Kee Yan (65) 6682 3706 [email protected] www.dbsvickers.com ed: SGC / sa: JC

Straits Times Index

FTSE Small Cap Index

ST Index

3,500 3,400

560

3,300

540

3,200

520

3,100

500

3,000

480

2,900 Jan-14

Apr-14

Jul-14

FTSE Small Cap Index

580

Oct-14

Jan-15

STI and 12-mth forward PE

460 Jan-14

Oct-14

Jan-15

Brent Crude Oil

4000 +0.5SD @ 14.5x

3800

Jul-14

Apr-14

3600

Average @ 13.8x

3400

-0.5SD @ 13.0x

US$/barrel 120

Brent Crude Oil

110 100 90 80

3200

70

3000

60

2800

50

2600 Jan-13

Jul-13

Jan-14

Jul-14

Jan-15

Jul-15

Jan-16

40 Jan-14

Apr-14

Jul-14

Oct-14

Source: Datastream, DBS Bank

FTSE Indices 5-Day Performance F T SE Sec t oral Indic es STI Mid Cap Small Cap All Share China Real Estate Real Estate & Dev Real Estate Inv Trust Oil & Gas Basic Materials Industrials Consumer Goods Health Care Consumer Serv ice Telecommunication Utilities F inancials Technology

Index @ 9- J an- 15 3,338.44 758.42 502.63 802.89 231.23 768.36 764.27 786.38 554.16 141.35 815.44 500.88 1,197.42 828.19 1,021.49 485.71 880.53 425.89

Source: DBS Bank, Bloomberg Finance L.P.

1 Wk % Chg -1.0 0.8 0.8 -0.6 3.0 1.2 1.7 0.7 -4.6 1.4 0.3 1.3 3.1 -1.1 -0.1 1.4 -0.6 2.6

YTD % Chg -0.8 1.3 2.1 -0.3 4.2 1.6 2.4 0.9 -4.0 12.7 1.0 2.1 3.5 -1.2 -0.3 2.5 -0.5 3.5

Jan-15

Singapore Traders Spectrum Wired Weekly

Singapore Market Summary The STI rebounded mid-week off the 3267 level to end at 3338 (-32pts). The intra-week reversal was within our expectation as the low point coincided closely with 13x (0.5SD) 12-mth forward PE at 3250. With the start of the 4Q results season, we expect the STI to hold at 3300, which is above last week’s low of 3267. Ezion turns price-action leader among O&G stocks

Residential property stocks fall as SIBOR uptick adds to woes in residential property market Singapore’s 3M SIBOR rose 40% in the initial week of 2015 to 0.639%, which market watchers attribute to SGD weakness against the USD. The increase may have lifted many eyebrows but the chart below shows it’s just a “flick” relative to movements over the past 10 years. Singapore 3M SIBOR

The oil price continued to trend down last week with Brent reaching as low as USD50/bbl before ending the week at USD50.5. We maintain our view that the precipitous downward decline in the oil price will end soon or may even have ended. SIP-qualified investors who want to look at a short-term reversal trade can turn to the United States Oil Fund (Bloomberg quote USO US Equity) ETF whose underlying is the WTI oil price futures. The recent positive divergence that we highlighted last week between O&G stocks and oil price has continued. Our picks in the O&G sector are Ezion and Pacific Radiance. Between the two, Ezion turned price-action leader late last week as it rose above its late December high of $1.16. Technically, we see upside to $1.26. Beyond this, the next level is $1.35. Near-term support is around $1.185. Start of 4Q results season The 4Q results season will run through February. The end of the 3Q results season saw earnings for stocks under our coverage revised down by 0.7% for FY14, but higher by 0.9% for FY15. This represented an improvement in the overall earnings revision trend that added evidence that the downward earnings revision has ended. We expect FY14E earnings to grow by 8.3% and FY15F by 13.4%. S-REITs and Keppel Group of companies are scheduled to release earnings over the next two weeks. SPH, SPH Reit, First Reits and Cambridge Industrial Trust will release results this week. Earnings revision trend after 3Q results season

Source: DBS Bank

While the latest 18bps SIBOR increase is unlikely to rattle most home owners, the concern is that interest rates will rise further is the FED start raising rates later this year. Current consensus regarding the start of the US rate hike spans from June till December 2015. But for a home owner with a loan tenure of 25-30 years, the 6-month difference offers little comfort. Rising mortgage rates add to uncertainty for the Singapore residential property market that will see a surplus in housing units over the next three years. For home owners holding investment properties, the effect could well be a “double whammy” of higher mortgage rates and falling rental yields. Our property analyst says Singapore residential property market is still in the early downcycle and projects a 12-15% drop in residential property prices over 2015-2016. Fortunately, most developers have substantially “derisked” their Singapore residential exposure as the total number of unsold inventory is only a small proportion of total exposure in the Singapore residential market. Our analyst believes an expected drop in residential prices is unlikely to dent RNAVs significantly. With valuations already at 30% discount to P/RNAV, negatives are already priced in. Ceteris paribus, developers with double-digit % RNAV exposure to Singapore residential property segment such as Wheelock (30%), City Dev (27%), Wing Tai (19%) and Ho Bee (15%) could underperform.

Source: DBS Bank

Page 2

Singapore Traders Spectrum Wired Weekly Developers exposure to Singapore residential (as % of RNAV) SG Resi Wheelock

30%

SG others 39%

Overseas

City Dev

27%

52%

21%

Wing Tai (Jun 2014)

19%

20%

60%

Ho Bee

15%

56%

29%

CapitaLand

9%

25%

66%

OUE Ltd

9%

56%

35%

Fraser Centrept Ltd

7%

35%

58%

UOL Limited

5%

87%

8%

Global Logistics Properties

0%

0%

100%

32%

Source: DBS Bank

Around the Region Our HK Research team has set the equity strategy for 2015. Chinese financials should continue to outperform in 1H15 while HK retail, HK REITs, gaming, oil, and F&B should underperform.

They believe there is still upside for A-shares in 1H15, but warn the party may run out of steam in mid-2015 when policy expectations tighten. The CSI 300 may peak at 4,500 mid-year or 15.2x forward PE (+1SD of mean of 12.4x). They are more upbeat on H-shares compared to the HIS. The 2015 year-end HSI and HSCEI targets are 25,700 and 14,200, respectively.

Views from our Economists Our Singapore economist sees dark clouds looming for the manufacturing sector. Growth outlook for the three key trading partners - China, Eurozone and Japan - remains dicey, while the recovery of the US economy has been slow. Nothing in the external environment justifies a sustained improvement for the PMI. The manufacturing sector is expected to struggle in coming months against the backdrop of an uncertain global outlook and restructuring drag. Activities may pick up in 2H15, but that will be conditional on a stronger recovery in the US, a turnaround in growth momentum in China, as well as improvements in the Eurozone. That sounds like a tall order at this juncture.

Page 3

Singapore Traders Spectrum Wired Weekly Top large and small / mid cap picks

TOP LARGE CAP PICKS Recom

P rice

T arget Price

Upside

CapitaLand

Buy

3.230

3.84

19%

1) Portfolio-wide improvement; performance underpinned by higher contributions from China 2) Streamlined structure enables group to be more nimble

OCBC

Buy

10.420

12.70

22%

1) Merged OCBC-WHB to deepen its capabilities in Greater China 2) Divestments in non-core (non-financial related) assets plus scrip dividend to buffer capital 3) Strong core banking business; wealth management and insurance to remain key ROE drivers 4) Our preferred Singapore bank pick.

Singapore Post

Buy

1.945

2.12

9%

1) SPOST’s low-cost carrier model for e-commerce logistics across Asia is better than high cost – high speed model of the likes of Fedex and DHLs. 2) Recent postal rate hike of 12-30% to mitigate the pressure on traditional post business and we expect to see double-digit earnings growth for the group going forward. 3) With over S$500m net cash, future acquisitions could boost FY16F earnings by 20% or more.

Yangzijiang

Buy

1.265

1.62

28%

1) Yangzijiang is set to outperform peers with 5- to 10-ppt higher margins and deliver relatively stable profits with upside potential from recognition of relocation fees from government. 2) In talks for mega containerships and LNG/LPG orders. 3) Paring down non-core investments. Net cash (incl Held-to-Maturity investments)of 33 Scts per share or 26% of its NTA.

Recom

P rice

T arget Price

Upside

China Merchants

Buy

0.980

1.42

45%

1) Organic growth to continue 2) Jiurui E’way acquisition to drive future growth

Mapletree Greater China Commercial Trust

Buy

0.955

1.04

9%

1) Visible organic growth 2) Portfolio of quality assets

Venture Corporation

Buy

7.940

8.40

6%

1) Margin recovery continues through productivity gain and more valueadded sales mix 2) Continues to ride on broader economic recovery.

Company

Catalyst

TOP SMALL / MID CAP PICKS Company

Source: DBS Bank

Page 4

Catalyst

Singapore Traders Spectrum Wired Weekly Major research reports released last week Company / Sector Recommendation Target Price ($) Key Points

Singapore Property: Year of Reckoning

-

1) Modest growth prospects for Singapore property market; sectors linked to external demand to do well 2) Prefer Developers to S-REITs on valuations 3) S-REITs – focus on growth rather than rate hikes

Singapore Property: POA conference highlights

-

1) Moderate growth from industrial REITs as Shadow space pressurises industrial rents 2) Delays in office completions could sustain upturn in office rents with recovery in hospitality expected 3) Concerns over prescriptive measures from MAS consultation paper

Plantation Companies

-

-

1) 2) 3) 4)

Dividend Picks & Earnings Guide

-

-

-

Foreign ownership limitation in Indonesian plantations is proposed at 30% Maximum concession size per group may be increased or done away with altogether Still no clarity on technical implementation Stay invested in BWPT, GENP, TSH and BAL

Source: DBS Bank

Page 5

Singapore Traders Spectrum Wired Weekly

Shanghai Composite Index 3,500

Hang Seng Index 26,000

Shanghai Comp Index

3,300

Taiwan Index 9,700

Hang Seng Index

3,100

9,300

2,900

24,000

2,700

23,000

8,900

22,000

8,700

2,500 2,300

9,100

8,500

2,100

21,000

1,900 Jan-14

20,000 Jan-14

Apr-14

12 mth: 1 mth:

Jul-14

Oct-14

Jan-15

61. 1%

YT D:

1. 8%

15. 3%

1 Wk:

1. 8%

8,300

12 mth: 1 mth:

Nikkei Index

6. 5%

YT D:

-1. 6%

-3. 6%

1 Wk:

-1. 6%

YT D:

-0. 7%

1 Wk:

-0. 7%

NASDAQ Index 5,000

1 mth:

Apr-14

Jul-14

Oct-14

Jan-15

3,800 Jan-14

Oct-14

Jan-15

YT D:

0. 5%

12 mth:

13. 7%

YT D:

0. 0%

1 Wk:

0. 5%

1 mth:

-0. 6%

1 Wk:

0. 0%

Euro/USD 1.40

usd/JPY

Euro/USD

1.35

115

1.30

Jul-14

0. 6%

120

1.32

Apr-14

8. 8%

125

usd/SGD

1.34

Nasdaq

4,000

USD/JPY

1.36

1.30

110

1.28

1.25

105

1.26

1.20

100

1.24 Apr-14

Jul-14

Oct-14

Jan-15

5. 0%

YT D:

0. 8%

1. 5%

1 Wk:

0. 9%

95 Jan-14 12 mth: 1 mth:

USD/RMB

Apr-14 14. 1% 0. 0%

Jul-14

Oct-14

Jan-15

1.15 Jan-14

5.05

usd/RMB

6.25 6.20

12 mth:

-13. 3%

YT D:

-2. 5%

1 mth:

-5. 1%

1 Wk:

-2. 5%

A$/SGD 1.20

sgd/RMB

5.00

1.18

4.95

1.16

Apr-14

Jul-14

Oct-14

Jan-15

2. 7%

YT D:

0. 1%

0. 4%

1 Wk:

0. 1%

1.12 1.10

Source: Datastream, DBS Bank

4.70

1.08

4.65

1.06

12 mth: 1 mth:

A$/SGD

1.14

4.75

4.60 Jan-14

Jan-15

0. 0%

4.80

6.05

Oct-14

-0. 1%

4.85

6.10

Jul-14

YT D:

4.90

6.15

Apr-14

1 Wk:

SGD/RMB

6.30

Page 6

8. 0% 1. 2%

4,200

12 mth:

USD/SGD

1 mth:

12 mth: 1 mth:

4,400

15,000 Jan-14

12 mth:

1. 0%

4,600

15,500 Jan-15

Jan-15

4,800

13,000 Jan-14

Oct-14

Oct-14

1. 0%

16,000

Jul-14

Jul-14

YT D:

16,500

Apr-14

Apr-14

1 Wk:

Dow Jones

14,000

6.00 Jan-14

8,100 Jan-14

3. 6%

17,000

15,000

1 mth:

Jan-15

17,500

16,000

12 mth:

Oct-14

18,000

17,000

1.22 Jan-14

Jul-14

1. 5%

18,500

Nikkei 225 Index

18,000

1 mth:

Apr-14

Dow Jones Industrials

19,000

12 mth:

Taiwan Index

9,500

25,000

Apr-14

Jul-14

Oct-14

Jan-15

1.04 Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

-2. 4%

YT D:

-1. 0%

12 mth:

-4. 4%

YT D:

0. 1%

-1. 0%

1 Wk:

-1. 0%

1 mth:

-0. 2%

1 Wk:

0. 1%

Singapore Traders Spectrum Wired Weekly Baltic Dry Index 1,900

Volatility Index 28

Baltic Dry Index

1,700

Fed Funds Rate 0.30

Volatility Index

24

1,500 1,300

20

1,100

16

0.20 0.15 0.10

900 12

700 500 Jan-14 12 mth: 1 mth:

Apr-14

Jul-14

Oct-14

Jan-15

-60. 4%

YT D:

-7. 4%

-22. 4%

1 Wk:

-7. 4%

Brent Crude Oil US$/barrel 120

0.05

8 Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

Palm Oil

100

0.00 Jan-14

900

42

850

40

800

80

750

70

700

60

650

34

50

600

32

40 Jan-14

550 Jan-14

1 mth:

Jul-14

Oct-14

Jan-15

-52. 8%

YT D:

-9. 3%

-24. 1%

1 Wk:

-9. 3%

Aluminium US$/MT 2,150 2,100 2,050 2,000 1,950 1,900 1,850 1,800 1,750 1,700 Jan-14 12 mth: 1 mth:

12 mth: 1 mth:

Apr-14

Jul-14

Apr-14 -13. 9% 8. 6%

-0. 5% -11. 7%

Jan-15

YT D:

-1. 0%

1 Wk:

-1. 0%

Jul-14

Oct-14

Jan-15

Copper

0. 6%

12 mth:

-2. 8%

YT D:

5. 9%

1 mth:

5. 2%

1 Wk:

5. 9%

RMB/MT 3,400 3,200 3,000

21,000

2,800

20,000

2,600

19,000

2,400 Apr-14 -10. 2% -3. 7%

Jul-14

Oct-14

Jan-15

2,200 Jan-14

Steel (rebar)

Apr-14

Jul-14

Oct-14

Jan-15

YT D:

1. 8%

12 mth:

-26. 3%

YT D:

-3. 6%

1 Wk:

1. 8%

1 mth:

-11. 8%

1 Wk:

-3. 6%

Gold US$/Ounce 1,400

Nickel

Gold

1,350

20,000 7,000

Jan-15

0. 6%

Tin

US$/MT 22,000

Copper

Jul-14

YT D:

22,000

1 mth:

Apr-14

1 Wk:

Nickel

US$/MT 7,500

30 Jan-14

23,000

12 mth:

Oct-14

Soya Oil

Steel

24,000

Oct-14

Jan-15

36

Tin

18,000 Jan-14

Oct-14

38

US$/MT

Aluminium

Jul-14

US$/Ib 44

Palm Oil

90

Apr-14

Apr-14

Soya Oil

US$/ton 950

Brent Crude Oil

110

12 mth:

Fed Funds Rate

0.25

1,300

18,000

1,250 16,000

6,500

1,200

14,000 6,000 Jan-14 12 mth: 1 mth:

Apr-14

Jul-14

Oct-14

-16. 0% -5. 5%

Jan-15

YT D:

-3. 0%

1 Wk:

-3. 0%

12,000 Jan-14 12 mth: 1 mth:

1,150 Apr-14

Jul-14

Oct-14

Jan-15

1,100 Jan-14

Apr-14

Jul-14

Oct-14

Jan-15

15. 0%

YT D:

2. 7%

12 mth:

-0. 8%

YT D:

2. 3%

-6. 0%

1 Wk:

2. 7%

1 mth:

-1. 6%

1 Wk:

2. 3%

Source: Datastream, DBS Bank

Page 7

Singapore Traders Spectrum Wired Weekly

Straits Times Index S/No.

B'berg Code

St oc k Name

1 2 3

DBS SP OCBC SP ST SP

DBS GROUP HOLDINGS LTD OV ERSEA-CHINESE BANKING CORP SINGAPORE TELECOMMUNICATIONS

Crncy SGD SGD SGD

L ast Day A v g V ol f or L ast Pric e V ol t he Week 9- J an- 15 (000 Shrs) (000 Shrs) 20.13 10.42 3.89

Rel ST I MTD (%)

Rel ST I QT D (%)

Rel ST I YTD (%)

Weight (%)

A c t ual M k t Cap (S$m) 49,802 41,511 62,021

1,518 2,322 5,330

4,930 3,736 18,963

(1) 0 1

(1) 0 1

(1) 0 1

12.31 11.22 10.02

4

UOB SP

UNITED OV ERSEAS BANK LTD

SGD

23.38

861

2,272

(4)

(4)

(4)

9.71

37,445

5

J M SP

J ARDINE MATHESON HLDGS LTD

USD

61.00

138

129

1

1

1

6.83

55,957

6

KEP SP

KEPPEL CORP LTD

SGD

8.37

2,237

3,901

(5)

(5)

(5)

4.18

15,165

7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

HKL SP J S SP CAPL SP GLP SP THBEV SP WIL SP SPH SP SGX SP GENS SP SIA SP CIT SP CT SP STE SP CD SP NOBL SP AREIT SP HPHT SP J CNC SP SCI SP GGR SP SMM SP STH SP OLAM SP SIE SP

HONGKONG LAND HOLDINGS LTD J ARDINE STRATEGIC HLDGS LTD CAPITALAND LTD GLOBAL LOGISTICS THAI BEV ERAGE PCL WILMAR INTERNATIONAL LTD SINGAPORE PRESS HOLDINGS LTD SINGAPORE EXCHANGE LTD GENTING SINGAPORE PLC SINGAPORE AIRLINES LTD CITY DEV ELOPMENTS LTD CAPITAMALL TRUST SINGAPORE TECHNOLOGIES ENG COMF ORTDELGRO CORP LTD NOBLE GROUP LTD A-REIT HUTCHISON PORT HOLDINGS TRUST J ARDINE CYCLE & CARRIAGE LTD SEMBCORP INDUSTRIES LTD GOLDEN AGRI-RESOURCES LTD SEMBCORP MARINE LTD STARHUB LTD OLAM INTERNATIONAL LTD SIA ENGINEERING CO LTD

USD USD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD SGD

7.40 34.50 3.23 2.47 0.73 3.25 4.13 7.78 1.03 12.16 10.25 2.06 3.38 2.55 1.115 2.43 0.69 40.02 4.19 0.46 3.06 4.08 2.01 4.15

838 92 5,562 9,496 9,858 3,168 1,333 767 9,879 535 305 2,967 1,925 1,216 16,362 1,592 5,461 85 613 22,564 2,995 1,143 539 472

1,056 163 8,434 16,320 9,717 4,490 2,583 2,164 30,807 1,074 842 7,614 9,685 5,578 27,599 6,945 9,643 234 3,641 57,271 2,474 1,599 4,023 856

10 2 (2) 0 6 1 (1) 0 (4) 6 1 2 0 (1) (1) 3 0 (5) (5) 1 (5) (1) 0 (1)

10 2 (2) 0 6 1 (1) 0 (4) 6 1 2 0 (1) (1) 3 0 (5) (5) 1 (5) (1) 0 (1)

10 2 (2) 0 6 1 (1) 0 (4) 6 1 2 0 (1) (1) 3 0 (5) (5) 1 (5) (1) 0 (1)

4.06 3.64 2.89 2.59 2.49 2.40 2.31 2.27 2.19 2.17 2.11 1.88 1.84 1.78 1.75 1.70 1.63 1.40 1.31 1.04 0.89 0.83 0.34 0.33

22,194 51,546 13,755 11,954 18,205 20,785 6,605 8,333 12,396 14,204 9,320 7,132 10,539 5,455 7,514 5,846 5,967 14,236 7,476 5,905 6,393 7,036 4,906 4,653

Source: Bloomberg Finance L.P.

Page 8

Singapore Traders Spectrum Wired Weekly At A Glance Currencies

Announced Dividends and Capital Issues Last Close

SG$/US$ Yen/US$ US$/Euro AUS$/US$ Pound/US$

    

1.33

Pt s c hg

% Chg 1 wk

0.0

0.0

(2.3)

(1.9)

0.84

0.0

1.1

1.22

(0.0)

(1.6)

1.52

(0.0)

(0.9)

Last Close

Pt s c hg 1w k

% Chg 1 wk

118.18

Other Important Indicators

Gold



1225.94

36.7

3.1

Crude Oil



48.36

(4.3)

(8.2)

US$ Yield 10-year



1.94

(0.2)

(7.8)

Important Dates (Singapore) Eve nt Retail Sales Ex Auto YoY Retail Sales YoY Retail Sales SA MoM Electronic Exports YoY Non-oil Domestic Exports YoY Non-oil Domestic Exports SA MoM Automobile COE Open Bid Cat A Automobile COE Open Bid Cat B Automobile COE Open Bid Cat E CPI NSA MoM CPI YoY CPI Core YoY Industrial Production SA MoM Industrial Production YoY Credit Card Bad Debts Credit Card Billings Bank Loans and Advances YoY Money Supply M1 YoY Money Supply M2 YoY Unemployment rate SA Electronics Sector Index Purchasing Managers Index Automobile COE Open Bid Cat A Automobile COE Open Bid Cat B Automobile COE Open Bid Cat E Foreign Reserves Retail Sales Ex Auto YoY Retail Sales YoY Retail Sales SA MoM Electronic Exports YoY Non-oil Domestic Exports YoY Non-oil Domestic Exports SA MoM Automobile COE Open Bid Cat A Automobile COE Open Bid Cat B Automobile COE Open Bid Cat E GDP YoY GDP SAAR QoQ CPI NSA MoM CPI YoY CPI Core YoY Industrial Production SA MoM Industrial Production YoY Bank Loans and Advances YoY Credit Card Bad Debts Credit Card Billings Money Supply M1 YoY Money Supply M2 YoY

Pe riod Nov Nov Nov Dec Dec Dec Jan Jan Jan Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 4Q P Jan Jan Feb Feb Feb Jan Dec Dec Dec Jan Jan Jan Feb Feb Feb 4Q F 4Q F Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan

Da te 15-Jan-15 15-Jan-15 15-Jan-15 16-Jan-15 16-Jan-15 16-Jan-15 21-Jan-15 21-Jan-15 21-Jan-15 23-Jan-15 23-Jan-15 23-Jan-15 26-Jan-15 26-Jan-15 30-Jan-15 30-Jan-15 30-Jan-15 30-Jan-15 30-Jan-15 30-Jan-15 3-Feb-15 3-Feb-15 4-Feb-15 4-Feb-15 4-Feb-15 7-Feb-15 13-Feb-15 13-Feb-15 13-Feb-15 17-Feb-15 17-Feb-15 17-Feb-15 18-Feb-15 18-Feb-15 18-Feb-15 20-Feb-15 20-Feb-15 23-Feb-15 23-Feb-15 23-Feb-15 26-Feb-15 26-Feb-15 27-Feb-15 27-Feb-15 27-Feb-15 27-Feb-15 27-Feb-15

Company YOMA STRATEGIC HOLDINGS LTD OLAM US$750M 6.75%B180129 N213100S 150201 N213100S 150201 BRC ASIA LIMITED AMPLEF IELD LIMITED F RASER AND NEAV E, LIMITED F RASERS CENTREPOINT LIMITED MERMAID MARITIME PUBLIC CO LTD NY01100F 160901 NY03100A 180901 NY05100N 200901 NY07100X 220901 NY09100H 240901 NZ07100S 270301 NZ10100F 300901 NZ13100V 330901 N511100W 160401 N513100T 180401 N514100H 191001 N710100Z 170401 NA12100N 420401 NX09100W 190601 NX11100X 210601 N708100S 150701 NA12100N 420401

T y pe RIGHTS INTEREST ENTITL. INTEREST DIV IDEND ENTITL. DIV IDEND DIV IDEND DIV IDEND INTEREST INTEREST INTEREST INTEREST INTEREST INTEREST INTEREST INTEREST INTEREST INTEREST INTEREST INTEREST INTEREST INTEREST INTEREST ENTITL. INTEREST

Part ic ulars OF FER OF 1 F OR 3 @ SGD 0.38 290714 - 280115 6.75% REDEMPTION 100% 0.25% SGD 0.008 ONE-TIER TAX SHARE CONSO OFFER OF 1 FOR 10 SGD 0.03 ONE-TIER TAX SGD 0.062 ONE-TIER TAX USD 0.0047 TAX EXEMPT 3.75% 4% 3.25% 3.13% 3% 3.50% 2.88% 3.38% 1.13% 0.50% 1.63% 2.38% 2.75% 2.50% 2.25% REDEMPTION 100% 2.75%

Ex Dat e 12-J an-15 20-J an-15 23-J an-15 23-J an-15 29-J an-15 3-Feb-15 3-Feb-15 3-Feb-15 3-Feb-15 18-Feb-15 18-Feb-15 18-Feb-15 18-Feb-15 18-Feb-15 18-Feb-15 18-Feb-15 18-Feb-15 24-Mar-15 24-Mar-15 24-Mar-15 24-Mar-15 24-Mar-15 22-May -15 22-May -15 23-J un-15 22-Sep-15

Paid/ Pay able 29-J an-15 2-Feb-15 2-Feb-15 10-Feb-15 16-Feb-15 16-Feb-15 23-Feb-15 2-Mar-15 2-Mar-15 2-Mar-15 2-Mar-15 2-Mar-15 2-Mar-15 2-Mar-15 2-Mar-15 1-Apr-15 1-Apr-15 1-Apr-15 1-Apr-15 1-Apr-15 2-J un-15 2-J un-15 1-J ul-15 1-Oct-15

Upcoming IPOs Nil

Recent IPO Trading Company Name V ersalink Holdings Ltd ISEC Healthcare Ltd Serrano Ltd/Singapore MS Holdings Ltd Zico Holdings Inc UG Healthcare Corp Ltd Huationg Global Ltd mm2 Asia Ltd iFAST Corp Ltd Keppel DC REIT

IPO Share Price 0.30 0.28 0.23 0.25 0.30 0.215 0.200 0.250 0.950 0.930

Last Close 0.210 0.375 0.205 0.380 0.470 0.24 0.21 0.20 1.09 0.98

ICB Sect or Name Household Goods & Home Construction Health Care Equipment & Services Construction & Materials Industrial Engineering Support Services Health Care Equipment & Services Construction & Materials Media Media Real Estate Investment Trusts

IPO Dat e 24/09/2014 28/10/2014 28/10/2014 07/11/2014 11/11/2014 08/12/2014 09/12/2014 09/12/2014 11/12/2014 12/12/2014

No. of Share 135 459 150 102 267 188 151 207 260 883

IPO M k t Cap 41 128 35 26 80 40 30 52 247 821

Source: Bloomberg Finance L.P.

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Singapore Traders Spectrum Wired Weekly January 2015 Mon

Tues

Wed

Thu

Fri

1

2

GDP SAAR QoQ GDP YoY

5

6

7 EMAS Offshore 1Q 15

12

19 Keppel Infrastructure Trust 4Q 14 Keppel Reit 4Q 14 M1 4q 14 Mapletree Ind 3Q 15 Mapletree Log 3Q 15

13

14

SPH 1Q 15

20 Keppel T&T 4Q 14 Mapletree Industrial Trust 3Q 15

21 CapitaCommercial 4Q 14 Keppel Land 4Q 14 Mapletree Commercial Trust 3Q 15 Sabana Shari'ah 4Q 14 Singapore Exchange 2Q 15 Soilbuild 4Q 14

15

27 Cache 4Q 14

28

16

First REITs 4Q 14

Cambridge Ind 4Q 14

Retail Sales Ex Auto YoY Retail Sales YoY Retail Sales SA MoM

Electronic Exports YoY Non-oil Domestic Exports YoY Non-oil Domestic Exports SA MoM

22 Ascendas Reits 3Q 15 Ascott R 4Q 14 Frasers Commercial 1Q 15 Keppel Corporation 4Q 14

Automobile COE Open Bid Cat A Automobile COE Open Bid Cat B Automobile COE Open Bid Cat E

26

9 Ezra 1Q 15

Automobile COE Open Bid Cat A Automobile COE Open Bid Cat B Automobile COE Open Bid Cat E Foreign Reserves

Purchasing Managers Index Electronics Sector Index

Qian Hu 4Q 14 SPH Reit 1Q 15 Tee Land 2Q 15

8 Triyards 1Q 15

23 CapitaMall Trust 4Q 14 Frasers Centrepoint 1Q 15

CPI YoY CPI NSA MoM CPI Core YoY

29

30

CDL Hospitality 4Q 14

Mapletree Greater 3Q 15

Industrial Production SA MoM Industrial Production YoY

Source: Bloomberg Finance L.P.

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Credit Card Bad Debts Credit Card Billings Bank Loans and Advances YoY Money Supply M1 YoY Money Supply M2 YoY Unemployment rate SA

Singapore Traders Spectrum 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 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.

ANALYST 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). COMPANY-SPECIFIC / REGULATORY DISCLOSURES 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 30 Nov 2014 except Ezion Holdings, CapitaLand, OCBC, Singapore Post, Yangzijiang Shipbuilding, Mapletree Greater China Commercial Trust and Venture Corporation

Page 11

Singapore Traders Spectrum Wired Weekly 2.

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 the Mapletree Greater China Commercial Trust as of 30 Nov 2014.

3.

Compensation for investment banking services: 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 have receive or intends to seek compensation for investment banking services from Ezion Holdings, Pacific Radiance Ltd, Singapore Post, Mapletree Greater China Commercial Trust. 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.

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") (formerly known as HwangDBS Vickers Research Sdn Bhd). 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.

Singapore

Wong Ming Tek, Executive Director, ADBSR 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) rd having its office at PO Box 506538, 3 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. Neither this report nor any copy hereof may be taken or distributed into the United States or to any U.S. person except in compliance with any applicable U.S. laws and regulations. It is being distributed in the United States by DBSVUSA, which accepts responsibility for its contents. 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.

United States

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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