Traders Spectrum Wired Weekly

Refer to important disclosures at the end of this report

DBS Group Research . Equity 27 Feb 2017

KEY POINTS Straits Times Index FTSE Small Cap Index

• STI – Short-term outlook turning choppy from 3,200 ST Index 410 FTSE Small Cap Index 3050 to 3150, firm support at 3000 3,100 400 3,000 Good newsflow on M&As and privatisations– Our • 2,900 picks are Courts Asia, PACC Offshore, Mermaid 390 2,800

Maritime, CSE Global and Sinostar PEC 2,700 380

2,600 370 Singapore Market Summary 2,500

2,400 360 Signs of a choppy March Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 STI’s decline of 20 points last Friday off the 3140 level could well be an early warning of a choppy March. Our STI and 12-mth forward PE Brent Crude Oil 3,800 US$/barrel 65 Brent Crude Oil technical view remains for the current year-to-date rally to 3,600 +1SD @ 15.2x 60 3,400 come to a pause around the 3150 level. We peg a short- 55 3,200 Avg @ 13.6x 50 term range from 3050 to 3150 with firm support at 3000, 3,000 45 2,800 which coincides closely with the current 13.26x (-0.25SD) -1SD @ 12.1x 40 2,600 12-month forward PE. 35 2,400 30 - 2SD @ 10.6x 2,200 25 The uncertainties over a possible rate hike in March and Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 the French elections in April has offset optimism that the Source: Datastream, DBS Bank Singapore economy is turning for the better, and support for the April-May ex-dividend period. Equity markets may FTSE Indices’ 5-Day Performance have to get pass the March FOMC meeting and the April Index @ 1 Wk % YTD % French elections before resuming their climb. Our year- FTSE Sectoral Indices 24-Feb-17 Chg Chg end STI objective is 3250 based on 13.64x (average) STI 3117.03 0.3 8.2 FY18F PE. Mid Cap 713.21 0.1 5.1 Small Cap 398.11 0.1 5.2 Week in review All Share 759.43 0.1 7.7 The benchmark Straits Times Index ended the previous China 217.37 -2.0 6.7 week up a modest 10 points. UOB, property stocks City Real Estate 759.5 0.5 8.7 Developments and Capitaland as well as yards Keppel Real Estate & Dev 804.18 1.2 14.4 Corp and Industries led the gains. Crude Palm Real Estate Inv Trust 738.5 -0.1 4.1 Oil (CPO) stocks and Golden Agri as Oil & Gas 390.81 4.6 17.6 well as Jardine C&C and led the Basic Materials 114.33 -1.1 16.8 decliners. Industrials 778.02 -1.7 8.3 Our call last week that the O&G sector is poised to Consumer Goods 546.83 -3.0 5.4 overtake property as the top performing sector proved Health Care 1453.96 -2.7 0.7 timely. The FTSE ST Oil & Gas Index (FSTOG) rallied 4.5% Consumer Service 753.52 0.4 2.5 week-on-week powered by the three yards - Keppel Corp, Telecommunication 998.98 -0.9 7.9 Sembcorp Industries and - as well as oil Utilities 356.54 -3.5 -0.9 services stocks such as Ezion. Year-to-date, the FSTOG is F inancials 843.34 1.0 8.1 Technology 237.68 -1.5 9.7 up 17%. Sentiment in the sector was fired up after Sembcorp Marine reported no major impairments for its Source: Bloomberg Finance L.P. results for the December quarter. This lifted optimism that the worst of the asset impairments may have passed.

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

ed: JS / sa: JC, PY Singapore Traders Spectrum

Wired Weekly

FTSE ST Indices relative performance

O&G

Source: DBS Bank

M&A and privatization news flow remain active review of its business, in line with its commitment to enhance shareholder value. Newsflow on potential M&As and privatisations continued last week with the Chairman and Non-Independent Non-Executive Our SMC (small-mid-cap) team recently highlighted five small Director of Global Premium Hotels making a voluntary cap companies that could potentially see privatisation and conditional offer for the Group for S$0.365 in cash per share. take-over offers (refer to table below) Separately, Q&M Dental Group said its conducting a strategic

SMC team’s top 5 privatisation/take-over candidates

Price Companies Rcmd TP ($) Comments ($) 1) Compelling valuations of 8x FY18F PE and 0.8x P/BV. 2) 74.3% owned by Singapore Retail Group; the outlay required to acquire the Courts Asia 0.455 Buy 0.51 remaining shares does not seem excessive in our view (c.S$58m, and approximately 2.3x FY18F net profit based on current share price) 1) Trades at >50% discount to book value PACC 2) Approximately 81.9% owned by Kuok group Offshore 0.365 Buy 0.42 3) POSH is a more stable long-term bet versus peers with no immediate debt (POSH) concerns, and has also demonstrated ability to secure work for its vessels amid an anaemic market 1) c.87.3% held by the Thoresen group and its related management. With c. S$270m in cash on hand, the Thoresen group has Mermaid 0.21 Buy 0.24 the necessary ammunition to take Mermaid private Maritime 2) Very low debt level versus peers, and net gearing of only 0.11x as at end Sep 2016, which adds to Mermaid’s attractiveness as a privatisation candidate 1) Net cash represents 20% of market cap, trading at 0.9x P/B, 6.5% dividend yield, and a reasonable PE of 11x. CSE Global 0.485 Buy 0.41 2) Free float of over 50% and with no single shareholder holding more than 15%, CSE is a potential take-over target 1) Based in Shandong, China, Sinostar produces petrochemical products in two locations. 2) Trading below book at 0.8x P/B, and under 7x Sinostar PEC 0.19 NA NA PE, while trading nearly at net cash per share. 3) Single largest shareholder, the Chairman, owns over 50% of the company. Source: DBS Bank

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Singapore Traders Spectrum Wired Weekly

Shanghai Composite Index Taiwan Index

3,500 Shanghai Comp Index 25,000 Hang Seng Index 10,000 Taiwan Index

3,300 9,600 23,000 9,200 3,100 21,000 8,800 2,900 8,400 2,700 19,000 8,000

2,500 17,000 7,600 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17

12 mth: 12.3% YTD: 5.1% 12 mth: 24.7% YTD: 10.0% 12 mth: 17.3% YTD: 5.7% 1 mth: 4.0% 1 Wk: 1.5% 1 mth: 5.7% 1 Wk: 0.9% 1 mth: 3.8% 1 Wk: -0.2%

Nikkei Index Dow Jones Industrials NASDAQ Index

21,000 Index 22,000 Dow J ones 6,200 Nasdaq 6,000 20,000 21,000 5,800 19,000 20,000 5,600 18,000 19,000 5,400 5,200 17,000 18,000 5,000 16,000 17,000 4,800 4,600 15,000 16,000 4,400 14,000 15,000 4,200 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17

12 mth: 20.7% YTD: 1.4% 12 mth: 26.4% YTD: 5.1% 12 mth: 30.1% YTD: 8.9% 1 mth: 2.6% 1 Wk: -0.3% 1 mth: 4.9% 1 Wk: 0.8% 1 mth: 5.5% 1 Wk: 0.7%

USD/SGD USD/JPY Euro/USD

1.46 usd/SGD 122 usd/J PY 1.16 Euro/USD 1.44 1.14 118 1.42 1.12 114 1.40 1.10 1.38 110 1.08 1.36 1.06 106 1.34 1.04 102 1.32 1.02 1.30 98 1.00 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17

12 mth: 0.4% YTD: -2.5% 12 mth: 1.1% YTD: -3.1% 12 mth: -4.4% YTD: 0.0% 1 mth: -0.9% 1 Wk: -0.5% 1 mth: 0.5% 1 Wk: -0.8% 1 mth: -1.9% 1 Wk: -0.3%

USD/RMB SGD/RMB AUD/SGD

7.00 usd/RMB 5.00 sgd/RMB 1.12 A$/SGD 6.90 1.10 4.90 6.80 1.08 6.70 4.80 1.06 6.60 4.70 1.04 6.50 1.02 4.60 6.40 1.00 6.30 4.50 0.98 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17

12 mth: 5.4% YTD: -1.0% 12 mth: 4.6% YTD: 0.9% 12 mth: 7.7% YTD: 4.3% 1 mth: 0.3% 1 Wk: 0.1% 1 mth: 0.4% 1 Wk: 0.5% 1 mth: 1.6% 1 Wk: 0.1% Source: Datastream, DBS Bank

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Baltic Dry Index Volatility Index Fed Funds Rate

1,400 Baltic Dry Index 28 V olatility Index 0.80 Fed Funds Rate 0.70 1,200 24 0.60 1,000 20 0.50 800 0.40 16 600 0.30 0.20 400 12 0.10 200 8 0.00 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17

12 mth: 153.5% YTD: -16.1% 1 mth: -11.8% 1 Wk: 17.2%

Brent Crude Oil Palm Oil Soya Oil

US$/barrel US$/ton US$/Ib 65 Brent Crude Oil Palm Oil Soy a Oil 800 0.38 60 750 0.36 55 50 700 0.34 45 650 0.32 40 600 0.30 35 30 550 0.28 25 500 0.26 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17

12 mth: 67.4% YTD: -1.6% 12 mth: 18.1% YTD: -3.6% 12 mth: 6.9% YTD: -6.1% 1 mth: 0.6% 1 Wk: -0.2% 1 mth: -6.4% 1 Wk: -6.7% 1 mth: -8.8% 1 Wk: -3.1%

Aluminium Tin Steel

US$/MT US$/MT Index Aluminium Tin Steel 1,700 24,000 105 100 1,650 22,000 95 1,600 20,000 90 85 1,550 18,000 80 1,500 16,000 75 70 1,450 14,000 65 1,400 12,000 60 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17

12 mth: 5.7% YTD: 6.6% 12 mth: 19.2% YTD: -9.0% 1 mth: 3.0% 1 Wk: 0.0% 1 mth: -4.1% 1 Wk: -2.8% Copper Nickel Gold

US$/MT US$/MT US$/Ounce Copper Nickel Gold 6,200 12,000 1,400 1,350 5,800 11,000 1,300 5,400 10,000 1,250

5,000 9,000 1,200 1,150 4,600 8,000 1,100 4,200 7,000 1,050 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17 Feb-16 May-16 Aug-16 Nov-16 Feb-17

12 mth: 29.6% YTD: 9.1% 12 mth: 25.2% YTD: 7.9% 12 mth: 0.7% YTD: 6.6% 1 mth: 4.4% 1 Wk: -0.4% 1 mth: 11.4% 1 Wk: -1.1% 1 mth: 1.4% 1 Wk: 0.5% Source: Datastream, DBS Bank

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Singapore Traders Spectrum Wired Weekly

Straits Times Index Last Day Avg Vol for Rel STI Rel STI Rel STI Actual Last Price Vol the Week MTD QTD YTD Mkt Cap S/No. B'berg Code Stock Name Crncy 24-Feb-17 (000 Shrs) (000 Shrs) (%) (%) (%) (S$m) 1 ST SP Singapore Telecommunications Ltd SGD 3.96 6,564 17,403 0 0 0 64,663 2 J M SP J ardine Matheson USD 62.95 192 319 (0) 6 6 63,178 3 DBS SP DBS Group Holdings Ltd SGD 18.87 2,673 5,010 (3) 1 1 47,980 4 OCBC SP OCBC Bank SGD 9.60 2,079 5,965 (0) (1) (1) 40,161 5 UOB SP Ltd SGD 21.70 871 2,820 1 (2) (2) 35,504 6 THBEV SP Thai Beverage PCL SGD 0.95 5,328 24,324 8 4 4 23,855 7 WIL SP Wilmar International Ltd SGD 3.70 2,172 14,068 (7) (5) (5) 23,380 8 HKL SP Holdings Ltd USD 6.82 743 1,882 (1) (0) (0) 22,545 9 J CNC SP J ardine Cy cle & Carriage Ltd SGD 40.62 131 328 (4) (10) (10) 16,054 10 CAPL SP CapitaLand Ltd SGD 3.63 13,222 17,797 8 12 12 15,382 11 GLP SP Global Logistics Properties Ltd SGD 2.75 4,876 7,455 3 17 17 12,889 12 KEP SP Keppel Corp Ltd SGD 6.95 2,701 6,582 10 12 12 12,603 13 GENS SP PLC SGD 1.01 18,349 29,078 1 3 3 12,085 14 SIA SP Ltd SGD 9.86 741 968 (3) (6) (6) 11,649 15 STE SP ST Engineering Ltd SGD 3.69 1,147 4,788 10 6 6 11,476 16 CIT SP City Developments Ltd SGD 9.53 768 2,703 1 7 7 8,666 17 SGX SP Ltd SGD 7.56 722 1,424 (0) (3) (3) 8,092 18 AREIT SP Ascendas REIT SGD 2.47 3,378 9,378 (2) 1 1 7,119 19 CT SP CapitaLand Mall Trust SGD 1.96 1,513 5,312 (1) (4) (4) 6,944 20 SCI SP Sembcorp Industries Ltd SGD 3.27 2,804 8,033 2 7 7 5,836 21 SATS SP SATS Ltd SGD 5.00 1,355 2,390 (8) (5) (5) 5,572 22 SPH SP Ltd SGD 3.46 2,499 3,550 (2) (10) (10) 5,533 23 UOL SP UOL Group Ltd SGD 6.65 681 936 2 3 3 5,351 24 CD SP ComfortDelGro Corp Ltd SGD 2.43 13,517 13,424 (1) (10) (10) 5,242 25 GGR SP Golden Agri-Resoures Ltd SGD 0.40 27,691 41,815 (8) (15) (15) 5,094 26 STH SP StarHub Ltd SGD 2.81 3,267 3,914 (8) (8) (8) 4,857 27 HPHT SP Trust USD 0.39 8,220 29,309 (12) (20) (20) 4,712 28 CCT SP CapitaLand Commercial Trust SGD 1.54 3,370 6,337 (1) (4) (4) 4,564 29 SIE SP SIA Engineering Co Ltd SGD 3.69 69 210 3 1 1 4,134 30 YZJ SGD SP Yangzijiang Shipbuilding Holdings Ltd SGD 0.92 8,201 15,488 11 4 4 3,506

Source: Bloomberg Finance L.P.

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At A Glance Announced Dividends and Capital Issues

Currencies Company Type Particulars Ex Date Paid/ Payable Last Pts % Chg TEE LAND LIMITED DIVIDEND SGD 0.0015 ONE-TIER TAX 28-Feb-17 24-Mar-17 Close chg 1 wk KARIN TECHNOLOGY HLDGS LIMITED DIVIDEND HKD 0.078 02-Mar-17 16-Mar-17 TAI SIN ELECTRIC LIMITED DIVIDEND SGD 0.0075 ONE-TIER TAX 07-Mar-17 16-Mar-17 SG$/US$ 1.41 (0.0) 0.3  MURATA MFG CO. LTD 100 DIVIDEND J PY 110 LESS TAX 29-Mar-17 30-Jun-17 Yen/US$  112.28 (0.3) (0.3) CEI LIM IT ED DIVIDEND SGD 0.048 ONE-TIER TAX 19-Apr-17 08-May-17 US$/Euro 0.95 0.0 0.8 CEI LIM IT ED DIVIDEND SGD 0.004 ONE-TIER TAX 19-Apr-17 08-May-17  LIMITED DIVIDEND SGD 0.059 ONE-TIER TAX 19-Apr-17 28-Apr-17 AUS$/US$  1.30 0.0 0.1 UNITED OV ERSEAS INSURANCE LTD DIVIDEND SGD 0.02 ONE-TIER TAX 19-Apr-17 03-May-17 Pound/US$  1.24 0.0 0.4 UNITED OV ERSEAS INSURANCE LTD DIVIDEND SGD 0.12 ONE-TIER TAX 19-Apr-17 03-May-17 DIVIDEND SGD 0.4 ONE-TIER TAX 20-Apr-17 08-May-17 GREAT EASTERN HLDGS LTD SINGAPORE TECH ENGINEERING LTD DIVIDEND SGD 0.1 ONE-TIER TAX 25-Apr-17 09-May-17 Other Important Indicators LIMITED DIVIDEND SGD 0.12 ONE-TIER TAX 26-Apr-17 11-May-17 Last Pts % Chg KEPPEL TELE & TRAN DIVIDEND SGD 0.045 ONE-TIER TAX 26-Apr-17 12-May-17 Close chg 1 wk VICOM LTD DIVIDEND SGD 0.1 ONE-TIER TAX 28-Apr-17 11-May-17 VICOM LTD DIVIDEND SGD 0.085 ONE-TIER TAX 28-Apr-17 11-May-17 1wk CHALLENGER TECHNOLOGIES LTD DIVIDEND SGD 0.016 ONE-TIER TAX 02-May-17 16-May-17 Gold  1255.37 16.9 1.4 HWA HONG CORPORATION LIMITED DIVIDEND SGD 0.01 ONE-TIER TAX 02-May-17 19-May-17 SBS TRANSIT LTD DIVIDEND SGD 0.027 ONE-TIER TAX 02-May-17 12-May-17 Crude Oil 53.49 0.1 0.2  COMFORTDELGRO CORPORATION LTD DIVIDEND SGD 0.0605 ONE-TIER TAX 03-May-17 15-May-17 US$ Yield PAN-UNITED CORPORATION LTD DIVIDEND SGD 0.0275 ONE-TIER TAX 03-May-17 18-May-17 2.31 10-year  (0.1) (4.3) PERENNIAL REAL ESTATE HLDGSLTD DIVIDEND SGD 0.004 ONE-TIER TAX 03-May-17 19-May-17 TUAN SING HOLDINGS LIMITED DIVIDEND SCRIP SGD 0.006 ONE-TIER TAX 03-May-17 23-Jun-17 DIVIDEND SCRIP DIV SCHEM SGD 0.3 ONE-TIER TAX 04-May-17 28-Jun-17 Important Dates (Singapore) DBS GROUP HOLDINGS LTD AV I-TECH ELECTRONICS LIMITED DIVIDEND SGD 0.01 ONE-TIER TAX 08-May-17 26-May-17 Event Period Date FIRST SPONSOR GROUP LIMITED DIVIDEND SGD 0.01 ONE-TIER TAX 08-May-17 26-May-17 MULTI-CHEM LIMITED DIVIDEND SGD 0.033 ONE-TIER TAX 15-May-17 25-May-17 Jan Credit Card Billings SGD 28-Feb-17 OV ERSEA-CHINESE BANKING CORP DIVIDEND SGD 0.18 ONE-TIER TAX 22-May-17 05-Jun-17 Jan Credit Card Bad Debts SGD 28-Feb-17 Jan Upcoming IPOs Money Supply M2 YoY 28-Feb-17 Nil Jan Money Supply M1 YoY 28-Feb-17 Feb Purchasing Managers Index 02-Mar-17 Recent IPO Trading Feb Electronics Sector Index 02-Mar-17 Closing Feb Price Listing Shares IPO Mkt Nikkei Singapore PMI 03-Mar-17 Name IPO Pricing 24.2.17 Sector Date Offered Cap Feb Foreign Reserves 07-Mar-17 United Global Ltd 0.25 0.290 Specialty Chemicals 08/07/2016 283 71 Mar Automobile COE Open Bid Cat B 08-Mar-17 Advancer Global 0.22 0.375 Support Services 11/07/2016 173 38 Mar Procurri Corp Ltd 0.56 0.395 Software & Computer Serv ices 20/07/2016 280 157 Automobile COE Open Bid Cat A 08-Mar-17 Katrina Group Ltd 0.210 0.220 Travel & Leisure 26/07/2016 232 49 Mar Automobile COE Open Bid Cat E 08-Mar-17 Wong Fong Industries Ltd 0.230 0.270 Industrial Engineering 28/07/2016 235 54 Jan Retail Sales SA MoM 15-Mar-17 EC World REIT 0.810 0.730 Real Estate Investment Trusts 28/07/2016 779 631 Jan China J injiang Env ironment Holding 0.900 0.785 Electricity 03/08/2016 1217 1,095 Retail Sales YoY 15-Mar-17 AGV Group Limited 0.220 0.180 Industrial Metals & Mining 26/08/2016 126 28 Jan Retail Sales Ex Auto YoY 15-Mar-17 HC Surgical 0.270 0.560 Healthcare Services 03/11/2016 146 40 Feb Non-oil Domestic Exports SA MoM 17-Mar-17 Samurai 2K Aerosol Ltd 0.200 0.20 Chemicals 16/01/2017 100 20 Feb Electronic Exports YoY 17-Mar-17 Feb Non-oil Domestic Exports YoY 17-Mar-17 Mar Automobile COE Open Bid Cat B 22-Mar-17 Mar Automobile COE Open Bid Cat A 22-Mar-17 Mar Automobile COE Open Bid Cat E 22-Mar-17 Feb CPI Core YoY 23-Mar-17 Feb CPI YoY 23-Mar-17 Feb CPI NSA MoM 23-Mar-17 Feb Industrial Production YoY 24-Mar-17 Feb Industrial Production SA MoM 24-Mar-17 Feb Credit Card Billings SGD 31-Mar-17 Feb Credit Card Bad Debts SGD 31-Mar-17 Feb Money Supply M2 YoY 31-Mar-17 Feb Money Supply M1 YoY 31-Mar-17 Source: Bloomberg Finance L.P.

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March 2017

Mon Tues Wed Thu Fri 123

Purchasing Managers Index Nikkei Singapore PMI Electronics Sector Index

678910 XP Power 4Q 16

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

13 14 15 16 17 Cape PLC 4Q 16 SingAsia Holdings 1H 17

Retail Sales SA MoM Non-oil Domestic Exports SA MoM Retail Sales YoY Electronic Exports YoY Retail Sales Ex Auto YoY Non-oil Domestic Exports YoY

20 21 22 23 24

BOC Aviation 4Q 16

Automobile COE Open Bid Cat B CPI Core YoY Automobile COE Open Bid Cat A CPI YoY Industrial Production YoY Automobile COE Open Bid Cat E CPI NSA MoM Industrial Production SA MoM

27 28 29 30 31

Credit Card Billings SGD Credit Card Bad Debts SGD Money Supply M2 YoY Money Supply M1 YoY

Source: Bloomberg Finance L.P., Companies, SGX

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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

Completed Date: 27 Feb 2017 14:02:57 (SGT) Dissemination Date: 27 Feb 2017 14:44:35 (SGT)

GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Bank Ltd. This report is solely intended for the clients of DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd, its respective connected and associated corporations and affiliates 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 and the DBS Group is under no obligation to update the information in this report.

This publication has not been reviewed or authorized by any regulatory authority in Singapore, Hong Kong or elsewhere. There is no planned schedule or frequency for updating research publication relating to any issuer.

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.

Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets.

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.

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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 the report. The DBS Group has procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of research reports. As of 27 Feb 2017, 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). The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment banking function of the DBS Group and procedures are in place to ensure that confidential information held by either the research or investment banking function is handled appropriately.

COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates have a proprietary position in UOB, City Developments, CapitaLand, Keppel Corporation, Sembcorp Industries, Wilmar International, Golden Agri Resources, Sembcorp Marine, Ezion Holdings recommended in this report as of 31 Jan 2017.

2. DBS Bank Ltd does not market make in equity securities of the issuer(s) or company(ies) mentioned in this Research Report.

3. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates have a net long position exceeding 0.5% of the total issued share capital in CapitaLand recommended in this report as of 31 Jan 2017.

Compensation for investment banking services: 4. 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 City Developments, Ezion Holdings, Courts Asia as of 31 Jan 2017.

5. DBS Bank Ltd., DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of securities for City Developments, Ezion Holdings, Courts Asia in the past 12 months, as of 31 Jan 2017.

6. 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.

7. Directorship/trustee interests: Euleen Goh Yiu Kiang, a member of DBS Group Holdings Board of Directors, is a Non-Exec Director of CapitaLand as of 1 Jan 2017. Danny Teoh Leong Kay, a member of DBS Group Holdings Board of Directors, is a Director of Keppel Corporation as of 1 Jan 2017.

Disclosure of previous investment recommendation produced 8. DBS Bank Ltd, DBS Vickers Sec urities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates may have published other investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12 months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12 months.

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.

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Hong Kong This report is being distributed in Hong Kong by or on behalf of, and is attributable to DBS Vickers (Hong Kong) Limited which is licensed and regulated by the Hong Kong Securities and Futures Commission and/or by DBS Bank (Hong Kong) Limited which is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission. Where this publication relates to a research report, unless otherwise stated in the research report(s), DBS Bank (Hong Kong) Limited is not the issuer of the research report(s). This publication including any research report(s) is/are distributed on the express understanding that, whilst the information contained within is believed to be reliable, the information has not been independently verified by DBS Bank (Hong Kong) Limited. This report is intended for distribution in Hong Kong only to professional investors (as defined in the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and any rules promulgated thereunder.)

For any query regarding the materials herein, please contact Paul Yong (CE. No. ASE988) at [email protected].

Indonesia This report is being distributed in Indonesia by PT DBS Vickers Sekuritas 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 produced by DBS Bank Ltd which is regulated by the Monetary Authority of Singapore.

This report is disseminated in the United Kingdom by DBS Vickers Securities (UK) Ltd, ("DBSVUK"). DBSVUK is authorised and regulated by the Financial Conduct Authority in the United Kingdom.

In respect of the United Kingdom, this report is solely intended for the clients of DBSVUK, its respective connected and associated corporations and affiliates 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 DBSVUK. This communication is directed at persons having professional experience in matters relating to investments. Any investment activity following from this communication will only be engaged in with such persons. Persons who do not have professional experience in matters relating to investments should not rely on this communication.

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.

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United States This report was prepared by DBS Bank Ltd. 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 e-mail: [email protected] Company Regn. No. 196800306E

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