Singapore Market Focus

Market Strategy Refer to important disclosures at the end of this report

DBS Group Research . Equity 2 Jun 2017

Shifting Sands STI : 3,204.79

• STI 3250 near term cap – Trim UOB, OCBC, Keppel Corp, Analyst Yeo Kee Yan CMT +65 6682 3706 Janice Chua +65 6682 3692 SIA Eng, GLP, YZJ [email protected] [email protected]

• Interest switches to consumer discretionary and industrials – Genting, ST Eng, Industries Key Indices • Hospitality REITs gather interest – CDL Hospitality Trust Current % Chng and Far East Hospitality Trust STI Index 3,204.79 -0.3% FS Small Cap Index 403.91 -0.4% • Sentiment is positive for property developers – City Dev USD/SGD Curncy 1.41 1.8% and UOL Daily Volume (m) 1,131 Daily Turnover (S$m) 602 June rate hike well anticipated. We expect the FED to lift the FED Daily Turnover (US$m) 427

funds rate by 25bps to 1.25% rates and go for another two more (consensus expects one more) by year-end.

YTD recovery story intact, growth moderating. While the YTD Market Key Data recovery story remains intact, be watchful of signs that suggest (%) EPS Gth Div Yield the manufacturing sector is peaking. The risk comes from China’s 2016 (6.1) 3.5 tight credit conditions and property market that could indirectly 2017F 12.6 3.7 affect ’s exports of electronic components. The latest 2018F 8.2 3.7 China Caixin PMI for May slipped into contraction territory at (x) PER EV/EBITDA 49.6, the first time since June 2016. 2016 17.8 14.4 2017F 15.8 13.0 STI May’s high unlikely to be taken out anytime soon. While the 2018F 14.6 12.0 STI can head for 3350, pegged to 14.02x (+0.25SD) FY18F PE, by 2016 (6.1) 3.5

year-end, we think that the recent high of 3274 should continue to provide a near-term cap given the earnings cut from the 1Q17 results season. If the 3188 level fails, expect a further dip to 3160

or lower to 3110 before finding support. Trim large caps such as STOCKS banks UOB, OCBC, Keppel Corp, SIA Engineering, GLP and 12-mth Click here Yangzijiang that have outperformed YTD with limited/no returns Target for Price Mkt Cap Price Performance (%) Company to TP. Guide S$ US$m S$ 3 mth 12 mth Rating Sentiment is positive for property developers. The rapid Genting succession of three en-bloc sales that were closed over the Singapore 1.165 9,935 1.35 17.7 58.5 BUY past 1-2 week points to Singapore developers’ bullish outlook ST Engineering 3.68 8,135 4.12 0.0 14.6 BUY towards land-banking good quality sites as they price in a recovery in 2018. City Dev and UOL are key beneficiaries of a Sembcorp rise in home prices given their existing unsold stock and Industries 3.16 3,999 3.80 (1.3) 12.5 BUY potentially better margins for recent land-banked projects. CDL Hospitality

Switch to consumer discretionary and industrials. We see the Trusts 1.595 1,129 1.75 12.7 13.5 BUY likelihood of a shift in sector relative performance as the Far East economic recovery theme progresses. Interest in bank and Hospitality Trust 0.635 817 0.66 8.5 5.8 BUY property stocks should shift to consumer discretionary stocks and City industrial sectors. Among the STI component stocks in these two Developments 10.48 6,758 12.63 10.7 25.5 BUY sectors, our picks are , ST Engineering and UOL Group 6.87 3,922 8.73 4.2 21.0 BUY

SembCorp Industries Closing price as of 30 May 2017 Hospitality REITs gather interest. Going into the next year, new supply that has been an overhang should materially decline while Source for all data in this page: DBS Bank, Bloomberg Finance L.P.

demand should receive a boost from 2018 being a biannual conference year. This should end the sector’s two-year downturn. We maintain our positive view on Singapore’s hospitality REITs. Our top two picks in the sector are CDL Hospitality Trust and Far East Hospitality Trust.

ASIAN INSIGHTS VICKERS SECURITIES

ed: CK, JS / sa:SM, PY

Market Focus

June Market Outlook

Looking back at May Noble Group was a major contributor to the overall earnings cut. The O&G sectors suffered earnings cut through the likes The benchmark STI ended the month of May up 35pts of Ezra, Ezion and PACC offshore. The consumer services (+1.1%), coming off a high of 3275 and following a mixed sector was dragged down by SIA while the consumer outcome from the 1Q17 results season. Gains in bank stocks services sector was affected by Japfa. were offset by weakness in real estate (Capitaland and UOL) and consumer services (SIA) sectors. The technology sector benefited from a positive earnings uplift from Venture Corp and UMS. SREITs sector enjoyed a Our positive view on the technology sector last month (refer modest upward revision to DPU from Ascott Residence to Monthly Strategy dated 3 May and entitled “Uplift to Trust, CapitaLand Retail China Trust and CDL Hospitality 3250”) where we highlighted Venture Corp, UMS and Hi-P Trusts amongst others. paid off as the sector continued its YTD run-up. Shares of UMS shares rallied 27% while Hi-P surged 32% on earnings optimism. Outlook

FTSE ST sector indices performance for May Key Event Event Date Comments

FOMC June 13- Consensus sees a 100% chance that the meeting 14 FED funds rate will increase to 1.25%

Source: DBS Bank

June rate hike a certainty unless a comet strikes Earth

It’s a quiet month on the events calendar with the mid- month FOMC meeting as the only key event. The FED had Source: DBS Bank recently signalled that it will look past the recent mixed US data and will likely hike rates come June. We expect the FED 1Q results season fails to lift Singapore market to lift the FED funds rate by 25bps to 1.25% rates and go for another two more by year-end. Consensus has priced in The 1Q17 results season saw a resumption of the a 100% chance of a June rate hike, followed by another by downward earnings revision trend for the stocks under our year-end. Investors will be eying the FED’s comments for coverage. FY17F earnings were revised down 2.9% while indications on the pace of rate hikes going forward. FY18F earnings were cut by 1.5%. This is against earlier YTD recovery story intact amid signs of growth moderation optimism that the earnings upward revision witnessed in the previous 4Q16 results season can sustain, given the slew of Singapore’s 1Q GDP growth was revised up to 2.7% y-o-y economic data pointing to a recovery. from the 2.5% advanced estimates. Our Singapore economist expects full-year GDP growth of 2.8%. This,

Back to negative earnings revision trend however, is on the premise that global economic conditions continue to improve.

For Singapore, the main concern is that the turnaround thus far has been uneven and restricted to just a few externally driven clusters such as electronics. The rest of the economy has yet to feel the uplift and the labour market has also remained soft.

Source: DBS Bank

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Market Focus

Electronics PMI Singapore non-oil domestic exports (y-o-y)

Source: Bloomberg Finance L.P., DBS Bank Source: Bloomberg Finance L.P., DBS Bank

Our Singapore economist observes signs suggesting the Industrial production y-o-y manufacturing sector may be peaking. Tighter credit conditions and stiffer regulations on the property market in China could weigh down on consumer sentiments and indirectly on Singapore’s exports of electronics components. The latest China Caixin PMI for May, a private gauge of China’s manufacturing, slipped into contraction territory for the first time since June last year (actual 49.6, consensus 50.1).

China Caixin PMI contracted for the first time since June 2016 Source: Bloomberg Finance L.P., DBS Bank

STI Outlook – May’s high unlikely to be taken out anytime soon

The 1Q17 results season saw a 0.7% downward revision for FY17F and 0.4% downward revision for FY18F. Trading at above 14.02x (+0.25SD) blended FY17/18F PE, May’s high of 3274 now stuck out like a ‘sore thumb’ in the near term, as the earnings revision trend turned negative again.

While the STI can head for 3350, pegged to 14.02x

Source: Bloomberg Finance L.P. (+0.25SD) FY18F PE, by year-end, we think that the recent high of 3274 should continue to provide a near-term cap. A difficult Brexit process could be another risk factor. The The 3188 level is key. If this level fails, expect a further transport engineering cluster is not entirely out of the pullback to the 13.64x (average) blended FY17/18F PE level woods given that oil prices have turned sideways. Hope is at 3160 or lower to 3110 before finding support. now pinned on companies’ capex spending to increase and for consumer demand in the US to be sustained that will STI at various forward PE levels lend some support to the manufacturing sector in the -0.5sd -0.25sd Avg +0.25sd +0.5sd months ahead. 12.87x 13.25x 13.64x 14.02x 14.41x PE PE PE PE PE FY17 2,889 2,974 3,062 3,147 3,234 FY18 3,074 3,164 3,257 3,348 3,441

Avg 2,981 3,069 3,160 3,248 3,338 17 & 18 Source: DBS Bank

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Market Focus

Straits Times Index (Daily) Strategy

Sentiment is positive for property developers. The rapid succession of three en-bloc sales that were closed over the past 1-2 weeks points Singapore developers’ bullish outlook towards land-banking good quality sites as they price in a recovery in 2018. Our property analyst thinks the Singapore government will respond by (i) raising the number of available land sites in the 2H17 government public land tender programme and/or (ii) raising the number of confirmed sites in the pipeline. City Dev and UOL are key beneficiaries of a rise in home prices given their existing unsold stock and potentially better margins for recently Source: DBS Bank land-banked projects.

Singapore property stocks

12-mth Price 30 Target P/BV 16 1m Perf 3m Perf Rel 6m Perf 13m Perf Company Target May 17 Return (x) Rel STI STI Rel STI Rel STI Price City Development 10.48 12.63 21% 1.0 (4) 7 14 11 UOL 6.87 8.73 27% 0.7 (6) 1 7 7 CapitaLand 3.51 4.33 23% 0.8 (8) (7) 4 3 Frasers Centrepoint Ltd 1.80 2.30 28% 0.8 (6) 4 na na

Source: DBS Bank

Trim large caps that have outperformed YTD with limited or the initial phase of an economic recovery should consolidate no upside to TP as interest shifts to consumer discretionary and industrial sectors. We will also trim stocks that have outperformed We advocate trimming back on large cap STI component YTD and are trading above our TPs – i.e. Keppel Corp and stocks that have outperformed YTD and have either risen SIA Engineering – while GLP and Yangzijiang are near or exceeded the fundamental TP (refer to list below). approaching our fundamental TP following their stellar YTD We keep our view that Index heavyweight bank stocks UOB performances. and OCBC that are among the sector outperformers during

Stocks that outperformed YTD & near/exceed TP

Price 12-mth 6m Perf Company Target Return Mkt Cap (S$m) Rcmd 30 May 17 Target Price Rel STI Keppel Corp 6.48 6.00 -7% 11,747 HOLD 8 SIA Eng 3.92 3.84 -2% 4,389 HOLD 4 UOB 23.09 22.70 -2% 37,795 BUY 4 OCBC 10.41 10.30 -1% 43,596 HOLD 4 GLP 2.91 3.00 3% 13,639 HOLD 32 Yangzijiang 1.26 1.35 7% 4,828 BUY

Source: DBS Bank

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Market Focus

Interest switches to consumer discretionary and industrials contraction leaders should shift to other consumer discretionary stocks and industrial sectors. Among the STI We see the likelihood of a shift in sector relative component stocks in these two sectors, our picks are performance as the economic recovery theme progresses. Genting Singapore, ST Engineering and SembCorp Interest in bank and property stocks that are late economic Industries

Large-cap consumer discretionary and industrial sectors picks EPS EPS Div Div Net Debt Price 12-mth PER P/BV Target PER Growth Growth Yield Yield / Equity Company 30 May Target 18 16 Return 17 (x) 17 18 16 17 17 2017 Price (x) (x) (%) (%) (%) (%) (%) Genting 1.165 1.35 16% 29.5 23.9 85.2 23.5 2.6 cash 1.9 SCI 3.160 3.80 20% 14.3 13.1 -3.0 9.3 2.2 0.9 0.8 ST Eng 3.680 4.12 12% 20.5 19.8 4.6 3.9 4.1 0.0 5.3

Source: DBS Bank

Hospitality REITs gathers interest as sector approaches new supply that has been an overhang should materially cyclical low decline (1% growth versus 5-6% over the past two years). Demand should receive a boost from 2018 being a biannual We maintain our positive view on Singapore’s hospitality conference year. We are also sensing increasing optimism REITs. Our REIT analyst says the end of the two-year from various hoteliers that we are approaching a near-term downturn in the Singapore hospitality is in sight with only cyclical low. Our top two picks in the sector are CDL seven months till the start of 2018. Going into the next year, Hospitality Trust and Far East Hospitality Trust.

Hospitality REITs Price 12-mth Net Debt / Target Mkt Cap Div Yield P/BV Company 30 May Target Equity Return (S$m) 17 (%) 16 (x) 2017 Price 17 (%) CDL HT 1.595 1.75 10% 1,591 6.2 0.4 1.0 Far East HT 0.635 0.66 4% 1,151 6.3 0.3 0.7 OUE HT 0.710 0.76 7% 1,279 6.8 0.4 0.9

Source: DBS Bank

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Market Focus

Significant Reports Date Report Title Sub Title

Regional 09-May-17 Regional DBS Commodity Tracker Prices recovery to be divergent 11-May-17 ASEAN Equity Strategy Better prospects ahead 11-May-17 Plantation Companies Near-term price recovery 18-May-17 Regional Telecom Sector Fixed-line calm amidst mobile storm 29-May-17 Regional DBS Commodity Tracker Prices recovery to be divergent

Singapore 04-May-17 Monthly Strategy Uplift to 3,250 17-May-17 Singapore Property Strong sales momentum continues 18-May-17 Singapore REITs Cycling up 23-May-17 Hi-P International (initiate coverage) In for the long haul 24-May-17 Small Mid Cap Strategy Ride on the Tech bull 25-May-17 Sunningdale Tech (initiate coverage) Rising SUNN 30-May-17 Frasers Property Group Winds of Change

Source: DBS Bank

Revisions to recommendations Stock Name Current Previous Change Date

StarHub FULLY VALUED HOLD 04-May-17 Riverstone Holdings BUY HOLD 05-May-17 ComfortDelgro HOLD BUY 15-May-17 Far East Hospitality Trust BUY HOLD 15-May-17 Global Logistic Properties HOLD BUY 17-May-17 Mermaid Maritime HOLD BUY 17-May-17 Pacific Radiance FULLY VALUED HOLD 18-May-17 Valuetronics (Equity Explorer) NOT RATED 23-May-17 Source: DBS Bank

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Market Focus

Big Cap Small Cap

Yangzijiang Hi-P International UMS Holdings OCBC MM2 Asia Venture Corporation Nam Ch eo ng Genting Breadtalk Group DBS Group Riverstone Holdings UOB Best World International First Resources iFAST Corporation SIA Engineering Cityneon Holdings SembCorp Industries Far East Hospitality Trust StarHub Limited Tat Hong Holdings UOL CSE Global Frasers Centrepoint Ltd Cosco Corporation CapitaLand Katrina Group Thai Beverage Public Jumbo Group IHH Healthcare Japfa Ltd Singapore Post Pacific Radiance Ltd SPH Ezion Holdings Dairy Farm (US$) Procurri Corporation Limited ComfortDelgro Noble Group -15 -10 -5 0 5 10 15 -80 -60 -40 -20 0 20 40 m-o-m % change m-o-m % change

Source: Bloomberg Finance L.P., DBS Bank

Event chart

STI 3,300 ST Index @ 1 June 2017: 3236; +0.9% m-o-m; +12.5% YTD

3,200 Weak 1Q . US rate hike earnnigs, 3,100 worries Return of US rate hike . Oil price decline Rebound led by Banks worries Uncertain . RMB Weak corporate outlook; (expectation of higher 3,000 depreciation STI valuation res ults; O&G NIM), O&G (rebound in moved up to selling companies not . Weak earnings oil price) and Property -1SD ahead of meeting loan outlook BREXIT (attractive valuation; 2,900 USDSGD obligations M&A interest) . STI valuation pullback . attractive at -2SD Expectation Flight to safety - . Expectations of further 2,800 of a delay in rebound led by monetary policies easing rate hike REITS and Telco . Pullback in USD US . Pullback in presidential 2,700 . Rebound in oil price USD election RMB Britain devaluation PBOC cut requirement ratio exit EU rates by 50 basis points 2,600

Average daily volume: 1.88bn 2,500 -

Volume STI Index

Source: Bloomberg Finance L.P., DBS Bank

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Market Focus

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: 2 Jun 2017 15:00:29 (SGT) Dissemination Date: 2 Jun 2017 18:23:11 (SGT)

Sources for all charts and tables are DBS Bank unless otherwise specified.

GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Bank Ltd. This report is solely intended for the clients of DBS Bank 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”) 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. Company Guide 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, 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.

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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.

DBSVUSA, a US-registered broker-dealer, does not have its own investment banking or research department, has not participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage in market-making.

ANALYST CERTIFICATION The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in 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, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), DBSV HK or their subsidiaries and/or other affiliates have proprietary positions in Genting Singapore, ST Engineering, Sembcorp Industries, CDL Hospitality Trusts, Far East Hospitality Trust, City Developments, UOL Group, UOB, OCBC, , Global Logistic Properties, Yangzijiang Shipbuilding, CapitaLand, Limited, Venture Corporation, Noble Group, Ezra Holdings, Ezion Holdings, Ascott Residence Trust, CapitaLand Retail China Trust, Starhub, ComfortDelgro, Far East Hospitality Trust, Global Logistic Properties recommended in this report as of 28 Apr 2017.

2. Neither DBS Bank Ltd, DBS HK nor DBSV 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, DBSV HK, their subsidiaries and/or other affiliates have a net long position exceeding 0.5% of the total issued share capital in CDL Hospitality Trusts, Ascott Residence Trust, CapitaLand Retail China Trust, Starhub, ComfortDelgro recommended in this report as of 28 Apr 2017.

4. DBS Bank Ltd, DBS HK, DBSVS, DBSVUSA, DBSV HK or their subsidiaries and/or other affiliates beneficially own a total of 1% of any class of common equity securities of Ascott Residence Trust as of 28 Apr 2017.

Compensation for investment banking services: 5. DBS Bank Ltd, DBS HK, DBSVS, DBSV HK, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12 months for investment banking services from Singapore Airlines Limited, Noble Group, Ezion Holdings, Japfa Ltd, Ascott Residence Trustas of 28 Apr 2017.

6. 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 Singapore Airlines Limited, Noble Group, Ezion Holdings, Ascott Residence Trust in the past 12 months, as of 28 Apr 2017.

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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7. 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.

Directorship/trustee interests: 8. Euleen Goh Yiu Kiang, a member of DBS Group Holdings Board of Directors, is a Non-Exec Director of CapitaLand as of 31 Mar 2017. 9. Danny Teoh Leong Kay, a member of DBS Group Holdings Board of Directors, is a Director of Keppel Corporation as of 31 Mar 2017. 10. Peter Seah Lim Huat, Chairman & Director of DBS Group Holdings, is a Director / Chairman of Singapore Airlines as of 31 Mar 2017. 11. Lim Sim Seng, a member of DBS Group Executive Committee, is an Independent Non-Executive Director of ST Engineering as of 1 May 2017 12. Nihal Vijaya Devadas Kaviratne CBE, a member of DBS Group Holdings Board of Directors, is a Director of Starhub as of 31 Mar 2017.

Disclosure of previous investment recommendation produced: 13. DBS Bank Ltd, DBS Vickers Securities (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.

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