China / Hong Kong Market Focus DBS Equity Picks

(Information in this document has been prepared without taking account of the objectives, financial situation or needs of any particular investor. Therefore, investment products mentioned in this document may not be suitable for all investors) Refer to important disclosures at the end of this report

DBS Group Research . Equity 7 Nov 2019

ANALYST Position for a short term rebound Dennis LAM +852 36684177 [email protected] Byron LAM +852 36684169 [email protected] Add DBS Equity Picks at a glance SHK Properties (16 HK), Ping An (2318 HK), BOCHK (2388 HK) Ke y fa c ts and HKEx (388 HK) into Blue Chip Inception Date 22 Jun 2018 T WRR (%) 8.23% Remove Start Value (HK$) 1,000,000 TWRR Ann (%) 5.90% (941 HK) and Shenzhou Intl (2313 HK) from Blue Current Value (HK$) 1,082,264 Total Div. Recd' (HK$) 45,520 Chip; Fortune REIT (788 HK) and HKBN (1310 HK) from Dividend Cash level (HK$) 2,101 Ca te gorie s October has proven to be an eventful month, with US-China trade BLUE CHIP DIVIDEND GROWTH talks, HK’s ongoing social unrest and China’s Fourth Plenary Provides steady growth over a Provides steady income stream Provides capital growth over 12 Session being the focus of the market. Given that the prevailing longer time period months negative sentiment has been factored in, we have taken a less DBS Equity Picks Constituents conservative approach in our selection. Entry Last UGL* Div We believe it is time to remove some of the very defensive names # of Price Price No. of (CD) paid from our top picks, such as Shenzhou Int’l (2313 HK), HKBN (1310 Stock Entry Date shares (HK$) (HK$) day s % (HK$) SHK PPT 6-Nov-19 680 121.3 121.3 1 0.0% 0.00 HK), Fortune REIT (778 HK), China Mobile (941 HK). In their place, 2-Aug-19 2,900 31.0 30.5 97 -1.6% 0.00 we have selected HKEx (388 HK), BOCHK (2388) and SHKP (16 22-Mar-19 230 365.0 334.0 230 -8.5% 1.00 HK). These are Blue chip names which have been PING AN 6-Nov-19 880 94.0 94.0 1 0.0% 0.00 underperforming YTD but the key negatives have been mostly BOCHK 6-Nov-19 2,960 28.1 28.1 1 0.0% 0.00 HKEX 6-Nov-19 330 251.2 251.2 1 0.0% 0.00 priced in. LINK REIT 5-Aug-19 930 90.7 85.6 94 -5.6% 0.00 XIABUXIABU 2-Aug-19 8,230 10.9 10.5 97 -3.9% 0.06 As for the rest, we continue to prefer Food & Beverage names CG SERVICES 2-May-19 5,730 14.9 27.4 189 83.1% 0.08 such as China Mengniu Dairy (2319 HK) and Xiabuxiabu (520 HK). CHINA EDUCATION 28-May-19 6,660 12.5 11.9 163 -4.6% 0.00 SHIMAO PROPERTY 3-Sep-19 3,390 21.9 28.5 65 30.1% 0.60 For sectors that offer secular growth and are not impacted by the CHINA RAIL CN-H 4-Oct-19 9,900 8.7 9.0 34 3.2% 0.00 trade war, we maintain our preference on China Education Group A v erage 81 7.7% (839 HK), Services (6098 HK), and Tencent (700 *Unrealized gain/loss HK). Cha nge s ove r the pa st month

We maintain Shimao (813 HK) in the list for its strong sales Return CD outlook, stable margins, high dividend yield and healthy balance Stock Date # of shares Price ($) (%) sheet. A ddition SHK PPT 6 Nov 680 121.3 0.0% PING AN 6 Nov 880 94.0 0.0% We add back (2318 HK) for its continual focus BOCHK 6 Nov 2,960 28.1 0.0% of higher margin products and better product mix. HKEX 6 Nov 330 251.2 0.0% Remov al CHINA MOBILE 6 Nov 1,100 83.9 -6.9% SHENZHOU INTL GP 6 Nov 830 109.0 4.8% HKBN LTD 6 Nov 7,300 13.4 10.8% FORTUNE REIT 6 Nov 8,300 10.4 -7.2%

DBS Equity Picks Performance Since Inception One Year

sa - CS / AH China/Hong Kong Market Focus DBS Equity Picks

Blue Chips

Bank of China Hong Kong Despite ongoing US/China trade uncertainties, BOCHK has maintained its Price Chart (2388 HK) guidance for FY19 loan growth to be in the high single digit driven by strong HK$ Relative Index Sector: HK Banks credit demands across the board; Expect BOCHK to continue to deliver 8-9% loan 45.0 200 growth p.a. in FY20-21F. 40.0 180 35.0 160 30.0 140 25.0 120 Risk Factor : Worse-than-expected asset quality. 100 20.0 80 Price: HK$28.10 12-mth TP: HK$33.00 Upside: 17.4% 15.0 60 10.0 40 Date added to list: 6-Nov-19 Price when added HK$28.10 5.0 20 Days passed 1 Dividend received HK$0.00 0.0 0 Nov-15 Jul-16 Mar-17Nov-17 Jul-18 Mar-19 % gain/(loss) 0.0% % chg relative to HSI: 0.0% Boc Hong Kong Holdings (LHS) Relative HSI (RHS)

China Mengniu (2319 HK) Solid outlook driven by core SKUs and margin enhancement from better product- Price Chart mix and lower A&P spending; Expect UHT milk and UHT yogurt to remain the key HK$ Relative Index Sector: Food & Beverage drivers, while the company will continue to invest in milk powder and ice-cream; 40.0 Delivering 24% y-o-y earnings growth in FY19F, and another 20% growth in 35.0 250 FY20F. 30.0 200 25.0 Risk Factor : Demand slowdown, raw material cost fluctuation 20.0 150 15.0 Price: HK$30.50 12-mth TP: HK$34.30 Upside: 12.5% 100 10.0 50 Date added to list: 2-Aug-19 Price when added HK$31.00 5.0 Days passed 97 Dividend received HK$0.00 0.0 0 % gain/(loss) -1.6% % chg relative to HSI: -4.5% Nov-15 Jul-16 Mar-17Nov-17 Jul-18 Mar-19 China Mengniu Dairy (LHS) Relative HSI (RHS)

HKEx (388 HK) The trend of US-listed Chinese companies to secondary list in HK will continue, Price Chart due to the recent new listing regime and the escalation of the Sino-US trade war; HK$ Relative Index Sector: Financials Expect Northbound trading to benefit substantially from MSCI China A-share 350.0 160 inclusion. The increasing number of derivative products would also boost HKEx’s 300.0 140 earnings. 250.0 120 100 200.0 80 Risk Factor : Weak market sentiment 150.0 60 25.8% Price: HK$251.20 12-mth TP: HK$316.00 Upside: 100.0 40 Date added to list: 6-Nov-19 Price when added HK$251.20 50.0 20 Days passed 1 Dividend received HK$0.00 0.0 0 Nov-15 Jul-16 Mar-17Nov-17 Jul-18 Mar-19 % gain/(loss) 0.0% % chg relative to HSI: 0.0% Hong Kong Exs.& Clear. (LHS) Relative HSI (RHS)

Ping An Insurance (2318 Positive on Ping An’s upcoming FYP growth, given both insurers’ have managed Price Chart HK) to expand their agency headcount amid last year’s challenging environment. We HK$ Relative Index believe the rebound in bond yield helps to alleviate the concerns over the rising Sector: China insurers 120.0 250 reserving risk as we move into FY20F. 100.0 200 80.0 150 Risk Factor : competition, economic slowdown in China 60.0 100 Price: HK$94.00 12-mth TP: HK$115.00 Upside: 22.3% 40.0 50 Date added to list: 6-Nov-19 Price when added HK$94.00 20.0 Days passed 1 Dividend received HK$0.00 0.0 0 Nov-15 Jul-16 Mar-17Nov-17 Jul-18 Mar-19 % gain/(loss) 0.0% % chg relative to HSI: 0.0% PING AN INSURANCE (GROUP) OF CHINA 'H' (LHS)

Page 2 China/Hong Kong Market Focus DBS Equity Picks

SHK Properties As the largest home builder in town, its share price performance should correlate Price Chart (16 HK) with the fundamentals in the HK real estate market; For FY20, SHKP targets to sell HK$ Relative Index Sector: HK Property HK$47.5bn worth of properties comprising HK$40bn in HK and HK$7.5bn in 160.0 160 China; Valuation is undemanding from a historical perspective and should help 140.0 140 cushion any downside risk on share price. 120.0 120 100.0 100 Risk Factor : Deterioration in property demand 80.0 80 60.0 60 11.8% Price: HK$121.30 12-mth TP: HK$135.60 Upside: 40.0 40 Date added to list: 6-Nov-19 Price when added HK$121.30 20.0 20 Days passed 1 Dividend received HK$0.00 0.0 0 Nov-15 Jul-16 Mar-17Nov-17 Jul-18 Mar-19 % gain/(loss) 0.0% % chg relative to HSI: 0.0% (LHS) Relative HSI (RHS)

Tencent (700 HK) Enhancing its position in the online advertising business, through partnerships Price Chart with e-commerce platforms; Positive on ad load growth from under-monetised HK$ Relative Index Sector: Technology WeChat Moment and Mini Program; Expect Tencent to deliver a segmental 500.0 revenue CAGR of 29% during FY18-20F, due to its dominant position in the 450.0 300 400.0 250 online game segment. 350.0 300.0 200 Risk Factor : Lack of new hit monetisable games 250.0 150 200.0 Price: HK$334.00 12-mth TP: HK$466.00 Upside: 39.5% 150.0 100 100.0 Date added to list: 22-Mar-19 Price when added HK$365.00 50.0 50 Days passed 230 Dividend received HK$1.00 0.0 0 Nov-15 Jul-16 Mar-17Nov-17 Jul-18 Mar-19 % gain/(loss) -8.5% % chg relative to HSI: -3.6% Tencent Holdings (LHS) Relative HSI (RHS)

Dividend

Link REIT (823 HK) With the majority of retail rental income in Hong Kong derived from tenants Price Chart selling consumer staples, its earnings should be very resilient across economic HK$ Relative Index Sector: Real Estate cycles. Moreover, it plans to repurchase 60m units from the market in FY20, 120.0 250 subject to market conditions and regulation. It is now trading at distribution yield Investment Trust 100.0 of 3.2-3.4% for FY20-21 200 80.0 150 Risk Factor : Any faster-than expected interest rate hike 60.0 100 Price: HK$85.60 12-mth TP: HK$97.00 Upside: 13.3% 40.0 Date added to list: 5-Aug-19 Price when added HK$90.65 20.0 50 Days passed 94 Dividend received HK$0.00 0.0 0 % gain/(loss) -5.6% % chg relative to HSI: -11.4% Nov-15 Jul-16 Mar-17Nov-17 Jul-18 Mar-19 Link Rl.Est.Inv.Tst. (LHS) Relative HSI (RHS)

Growth

Xiabuxiabu (520 HK) A leading hotpot chain in China with a dual-brand strategy of Xiabuxiabu and Price Chart Coucou; Expect Xiabu to achieve an earnings CAGR of 18% in FY19-21F on HK$ Relative Index Sector: Restaurants steady store expansion (+145 net new stores per annum), store upgrades, and 20.0 600 cost efficiency; The expanding catering industry in China should benefit the 18.0 500 company 16.0 14.0 400 12.0 Risk Factor : Food safety incidents, raw material cost volatility 10.0 300 8.0 Price: HK$10.48 12-mth TP: HK$12.90 Upside: 23.1% 6.0 200 Date added to list: 2-Aug-19 Price when added HK$10.90 4.0 100 2.0 Days passed 97 Dividend received HK$0.00 0.0 0 % gain/(loss) -3.9% % chg relative to HSI: -6.7% Nov-15 Jul-16 Mar-17Nov-17 Jul-18 Mar-19 Xiabuxiabu Cater.Man. (China) Hdg. (LHS) Relative HSI (RHS)

Page 3 China/Hong Kong Market Focus DBS Equity Picks

Country Garden Services We expect CGS to deliver 44%/33% 2-year CAGR in revenue/net earnings by Price Chart (6098 HK) 2020; Newly delivered projects that will be converted to revenue-bearing GFA HK$ Relative Index Sector: China property represent c.29% of CGS’s total GFA under management for FY19F and FY20F 30.0 300 management 25.0 250 20.0 200 Risk Factor : Slower than expected completion pace 15.0 150 Price: HK$27.35 12-mth TP: HK$26.21 Upside: -4.2% 10.0 100 Date added to list: 2-May-19 Price when added HK$14.94 5.0 50 Days passed 189 Dividend received HK$0.08 0.0 0 Jun-18 Oct-18 Feb-19 Jun-19 Oct-19 % gain/(loss) 83.1% % chg relative to HSI: 90.6% Country Garden Services Holdings (LHS) Relative HSI (RHS)

China Railway Con. (1186 We believe the company will continue to benefit from China’s aggressive Price Chart HK) transportation FAI plan this year; With its strong track record of winning HK$ Relative Index Sector: Railways and contracts, we expect new contract wins in FY19 to grow by a double-digit to 14.0 120 construction around Rmb 1,700bn 12.0 100 10.0 80 8.0 60 Risk Factor : Cost overruns 6.0 Price: HK$9.01 12-mth TP: HK$12.50 Upside: 38.7% 4.0 40 Date added to list: 4-Oct-19 Price when added HK$8.73 2.0 20 Days passed 34 Dividend received HK$0.00 0.0 0 Nov-15 Jul-16 Mar-17Nov-17 Jul-18 Mar-19 % gain/(loss) 3.2% % chg relative to HSI: -4.0% China Railway Con.'H' (LHS) Relative HSI (RHS)

China Education Group Confident for a better margin for 2H19 without considering potential acquisitions. Price Chart (839 HK) CEG could gradually improve the margins of new schools, supported by the higher HK$ Relative Index Sector: Education operating leverage. Expect the sale expense ratio to drop ahead with higher 20.0 300 portion of undergraduate programs. 18.0 16.0 250 14.0 200 12.0 Risk Factor : Future M&As do not meet market expectations 10.0 150 8.0 Price: HK$11.90 12-mth TP: HK$14.50 Upside: 21.8% 6.0 100 4.0 50 Date added to list: 28-May-19 Price when added HK$12.48 2.0 Days passed 163 Dividend received HK$0.00 0.0 0 Dec-17 Aug-18 Apr-19 % gain/(loss) -4.6% % chg relative to HSI: -5.7% China Education Group Holdings (LHS) Relative HSI (RHS)

Shimao Property (813 HK) Gross margin is expected to stay above 30% in FY19F and FY20F, and Price Chart management is confident of delivering earnings CAGR of 25% over the next two HK$ Relative Index Sector: China Property years. This coupled with a healthy financial position and fast-growing investment 40.0 300 property arm leads us to believe Shimao has the potential to re-rate into a large- 35.0 250 cap stock. 30.0 25.0 200 Risk Factor : Execution risks in fast expansion stage 20.0 150 15.0 100 Price: HK$28.50 12-mth TP: HK$32.00 Upside: 12.3% 10.0 50 Date added to list: 3-Sep-19 Price when added HK$21.90 5.0 0.0 0 Days passed 65 Dividend received HK$0.60 Nov-15 Jul-16 Mar-17Nov-17 Jul-18 Mar-19 % gain/(loss) 30.1% % chg relative to HSI: 21.7% Shimao Property Holdings (LHS) Relative HSI (RHS)

Page 4 China/Hong Kong Market Focus

DBS Equity Picks

Notes 1.Adopt an inception value of HK$1,000,000 on 22 June 2018 2.Assume commission cost of 0.2% and fees of 0.11% 3.At inclusion point, each stock takes up 5 to 20% of total value of picks 4.The market dollar value of a stock must not exceed 20% of total value of picks value during a weight increase 5.The market dollar value of a stock must not fall below 5% of total value of picks during a weight decrease 6.‘First-in, First-Out’ methodology is adopted during a weight decrease 7.Assume $1,000,000 is equally distributed for each stock inclusion between the inception date on 22 Jul 2018 till up to now.

Completed Date: 7 Nov 2019 12:29:38 (HKT) Dissemination Date: 7 Nov 2019 17:07:07 (HKT) DBS Equity Picks 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 “DBS Equity Picks” relies more on assessments of technical factors, likely sentiment responses and short-term money flows, rather than on fundamental analysis. As such the “DBS Equity Picks” 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 HK 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. Sources for all charts and tables are DBS HK unless otherwise specified.

GENERAL DISCLOSURE/DISCLAIMER

This report is prepared by DBS Bank (Hong Kong) Limited (“DBS HK”). This report is solely intended for the clients of DBS Bank Ltd., DBS HK, DBS Vickers (Hong Kong) Limited (“DBSV HK”), and DBS Vickers Securities (Singapore) Pte Ltd. (“DBSVS”), 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 HK.

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., DBS HK, DBSV HK, DBSVS, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the “DBS Group”) have not conducted due diligence on any of the companies, verified any information or sources or taken into account any other factors which we may consider to be relevant or appropriate in preparing the research. Accordingly, we do not make any representation or warranty as to the accuracy, completeness or correctness of the research set out in this report. Opinions expressed are subject to change without notice. This research 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.

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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.

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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 research analyst (s) primarily responsible for the content of this research report, in part or in whole, certifies that he or his associate1 does not serve as an officer of the issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of the real estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for the management of the issuer or the new listing applicant) and the research analyst(s) primarily responsible for the content of this research report or his associate does not have financial interests2 in relation to an issuer or a new listing applicant that the analyst reviews. 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. 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. There is no direct link of DBS Group's compensation to any specific investment banking function of the DBS Group.

COMPANY-SPECIFIC / REGULATORY DISCLOSURES

1. DBS Bank Ltd, DBS HK, DBSVS or their subsidiaries and/or other affiliates have proprietary positions in BOC Hong Kong Holdings Ltd (2388 HK), China Mengniu Dairy Co Ltd (2319 HK), China Railway Construction Corp Ltd (1186 HK), Country Garden Services Holdings Co Ltd (6098 HK), Hong Kong Exchanges & Clearing Ltd (388 HK), Link REIT (823 HK), Ping An Insurance Group Co of China Ltd (2318 HK), Shimao Property Holdings Ltd (813 HK), Sun Hung Kai Properties Ltd (16 HK), Tencent Holdings Ltd (700 HK), China Mobile Ltd (941 HK), Shenzhou International Group Holdings Ltd (2313 HK), Fortune Real Estate Investment Trust (778 HK) and HKBN Ltd (1310 HK) recommended in this report as of 05 Nov 2019.

2. Neither DBS Bank Ltd nor DBS HK market makes in equity securities of the issuer(s) or company(ies) mentioned in this Research Report.

3. DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates have a net long position exceeding 0.5% of the total issued share capital in Fortune Real Estate Investment Trust (778 HK) recommended in this report as of 05 Nov 2019.

4. Compensation for investment banking services: DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12 months for investment banking services from BOC Hong Kong Holdings Ltd (2388 HK), China Mengniu Dairy Co Ltd (2319 HK) and China Railway Construction Corp Ltd (1186 HK) as of 30 Sep 2019.

DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA, within the next 3 months, will receive or intend to seek compensation for investment banking services from BOC Hong Kong Holdings Ltd (2388 HK) as of 30 Sep 2019. 5. DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of securities for China Mengniu Dairy Co Ltd (2319 HK) and China Railway Construction Corp Ltd (1186 HK) in the past 12 months, as of 30 Sep 2019.

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.

6. Disclosure of previous investment recommendation produced: DBS Bank Ltd, DBSVS, DBS HK, their subsidiaries and/or other affiliates of DBSVUSA 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 HK, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA in the preceding 12 months.

1 An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions or instructions of the analyst.

2 Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an issuer or a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term does not include commercial lending conducted at arm's length, or investments in any collective investment scheme other than an issuer or new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.

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China/Hong Kong Market Focus

DBS Equity Picks

United Arab This report is provided by DBS Bank Ltd (Company Regn. No. 196800306E) which is an Exempt Financial Adviser as defined Emirates in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. This report is for information purposes only and should not be relied upon or acted on by the recipient or considered as a solicitation or inducement to buy or sell any financial product. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situation, or needs of individual clients. You should contact your relationship manager or investment adviser if you need advice on the merits of buying, selling or holding a particular investment. You should note that the information in this report may be out of date and it is not represented or warranted to be accurate, timely or complete. This report or any portion thereof may not be reprinted, sold or redistributed without our written consent. United States This report was prepared by DBS HK. 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 In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified, jurisdictions professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions. DBS Bank (Hong Kong) Limited 13 th Floor One Island East, 18 Westlands Road, Quarry Bay, Hong Kong Tel: (852) 3668-4181, Fax: (852) 2521-1812

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China/Hong Kong Market Focus

DBS Equity Picks

DBS Regional Research Offices

HONG KONG MALAYSIA SINGAPORE DBS Bank (Hong Kong) Ltd AllianceDBS Research Sdn Bhd DBS Bank Ltd Contact: Carol Wu Contact: Wong Ming Tek (128540 U) Contact: Janice Chua 13th Floor One Island East, 19th Floor, Menara Multi-Purpose, 12 Marina Boulevard, 18 Westlands Road, Capital Square, Marina Bay Financial Centre Tower 3 Quarry Bay, Hong Kong 8 Jalan Munshi Abdullah 50100 Singapore 018982 Tel: 852 3668 4181 Kuala Lumpur, Malaysia. Tel: 65 6878 8888 Fax: 852 2521 1812 Tel.: 603 2604 3333 Fax: 65 65353 418 e-mail: [email protected] Fax: 603 2604 3921 e-mail: [email protected] e-mail: [email protected] Company Regn. No. 196800306E

INDONESIA THAILAND PT DBS Vickers Sekuritas (Indonesia) DBS Vickers Securities (Thailand) Co Ltd Contact: Maynard Priajaya Arif Contact: Chanpen Sirithanarattanakul DBS Bank Tower 989 Siam Piwat Tower Building, Ciputra World 1, 32/F 9th, 14th-15th Floor Jl. Prof. Dr. Satrio Kav. 3-5 Rama 1 Road, Pathumwan, Jakarta 12940, Indonesia Bangkok Thailand 10330 Tel: 62 21 3003 4900 Tel. 66 2 857 7831 Fax: 6221 3003 4943 Fax: 66 2 658 1269 e-mail: [email protected] e-mail: [email protected] Company Regn. No 0105539127012 Securities and Exchange Commission, Thailand

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