Daily Focus Singapore Stock Pulse Refer to important disclosures at the end of each report DBS Equity Research 23 Jan 2019 Market Cap: US$37,268m | Average Daily Value: US$70.43m Yeo Kee Yan, CMT [email protected] Singapore Research Team Last Traded Price: S$29.99; Price Target: S$33.20 (Upside 10.7%) Sue LinResearch LIM / Rui CallWen Alert LIM Strong• 1Q18;Stock to keep watch: watch Frasers on Centrepoint dividends Trus aheadt: Hungry for more - raised target price to S$2.40 • 1Q18 earnings were in line; topline driven largely from higher NIM; lower trading gains Ideasoffset ofsome the revenues Day • ActionableCredit ideascosts by at our new analysts low ofbased 23bps, on macro, guidance industry at or20 corporate-25bps possibly developments towards the lower end; still some buffers noted under the Expected Credit Losses line for other assets Stocks to Watch Frasers Centrepoint Trust Keppel Infrastructure Trust Mapletree Logistics Trust • BUYPositive outlook ahead, toplineBUY growth supported by lowerBUY credit costs; dividends Last Traded Price: S$2.27 Last Traded Price: S$0.515 Last Traded Price: S$1.34 shouldPrice be Target sustainable (12-mth) at: S$2.40 S$1.00 perPrice year Target and (12 could-mth): headS$0.58 higher Price Target (12-mth): S$1.50 (Prev S$2.35) Upside 12.5% Upside: 11.7% • UpsideMaint: 5.5%ain BUY; TP at S$33.20 (1.5x FY18 BV); higher dividends and lower credit costsHungry are upside for more risks M&A activity drives interest Hitting new heights • 1Q19 DPU of 3.02 Scts • 4Q18 DPU of 0.93Scts • 3Q19 DPU of 2.00 Scts at a Read more..DBS(+0.7%) in Groupline Research. Equitysteady as expected multi-year high • Operating performance • Acquisition of Australian • Operational metrics 30 tracks ahead - reversion of chemical Ixom on track to improving; rental reversion +11.1% for crown jewel be completed by end-1Q19 of 4.5% an improvement Causeway Point prompts • Yield of 7.2% at current compared to a quarter ago relook at FCT’s long-term prices is healthy amid • Portfolio optimisation DBS EquityDPU Researchgrowth profile expected volatile marke5t June 201strategy8 is ongoing • TP raised to S$2.40 as the conditions • Maintain BUY and S$1.50 strong rent momentum Market Cap: US$37,268m | Average• MaintainDaily Value: BUY with US$70.43m TP of TP exhibited in 1Q19, if S$0.58 sustained, augurs well for Read more… Last Tradedfuture Price: cashflows S$29.99; Price Target:Read more… S$33.20 (Upside 10.7%) • Maintain BUY; offers attractive c.5.5% yield with Sue Lin upsideLIM / Ruifrom Wen acquisitions LIM StrongRead 1Q18; more… keep watch on dividends ahead • 1Q18 earnings were in line; topline driven largely from higher NIM; lower trading gains offset some revenues • Credit costs at new low of 23bps, guidance at 20-25bps possibly towards the lower ed: JS end; still some buffers noted under the Expected Credit Losses line for other assets Daily Focus Singapore Stock Pulse Soilbuild Business Space Reit Koufu BUY BUY Last Traded Price: S$0.620 Last Traded Price: S$0.61 Price Target (12-mth): S$0.65 Price Target (12-mth): S$0.80 Upside: 4.6% Upside 31.1% Attractive yield play Shares could rise after strategic investor acquires 3.6% stake • FY18 DPU of 5.29 Scts in line • Australia and Solaris to remain brightest spots • Boutique fund investor Albizia Capital buys for SBREIT in 2019 while the industrial sector over 20 million shares at IPO price of bottoms out $0.63/share • Concerns over NK Ingredients, but upside • 7 million shares were bought directly from Jun could come from redevelopment potential Yuan Holdings, in which the two Koufu • Maintain BUY; S$0.65 TP founders each have a 50% stake while 13 million shares were acquired from other Read more… shareholders • News could breathe life to the stock price that had been ‘laying dormant’ at around $0.62 since mid-October 2018 Model Portfolio Our Model Portfolio aims to help traders build a portfolio of Singapore stocks for their clients, based on their risk profile. Stock picks are based on sectoral, fundamental, and technical analysis Blue Chips Genting Singapore Singtel ST Engineering BUY BUY BUY Last Traded Price: S$1.09 Last Traded Price: S$3.020 Last Traded Price: S$3.660 Price Target Price Target Price Target (12-mth): S$1.55 (12-mth): S$3.59 (12-mth): S$4.15 Upside 42.2% Upside 18.9% Upside 13.4% Thai Beverage Public Company BUY Last Traded Price: S$0.735 Price Target (12-mth): S$0.87 Upside 17.9% Growth Genting Singapore BUY Last Traded Price: S$1.09 Price Target (12-mth): S$1.55 Upside 42.2% Page 2 Daily Focus Singapore Stock Pulse Dividends Ascendas India Trust Mapletree Logistics Trust Mapletree North Asia BUY BUY Commercial Trust Last Traded Price: S$1.09 Last Traded Price: S$1.340 BUY Price Target Price Target Last Traded Price: S$1.200 (12-mth): S$1.25 (12-mth): S$1.50 Price Target Upside 14.7% Upside 11.7% (12-mth): S$1.45 Upside 20.8% Singtel ST Engineering BUY BUY Last Traded Price: S$3.020 Last Traded Price: S$3.660 Price Target Price Target (12-mth): S$3.59 (12-mth): S$4.15 Upside 18.9% Upside 13.4% Straits Times Index Year End Objective: 3,250 Support Current Resistance level Level 3,173 3,220 3,193 3,140 3,230 Source: DBS Bank, Bloomberg Finance L.P. 10 most active traded STI component stocks Price (S$) Mkt Cap Company 22 Jan 2019 Sector (S$m) Volume Thai Beverage PCL 0.735 Consumer, Non-cyclical 18,457 26,808,100 Genting Singapore Ltd 1.090 Consumer, Cyclical 13,129 22,717,600 Singapore Telecommunications Ltd 3.020 Communications 49,314 10,209,100 Yangzijiang Shipbuilding Holdings Ltd 1.340 Industrial 5,287 8,842,100 Hutchison Port Holdings Trust 0.255 Consumer, Non-cyclical 3,021 8,724,900 CapitaLand Mall Trust 2.270 Financial 8,369 5,880,400 Ascendas Real Estate Investment Trust 2.710 Financial 8,430 5,847,500 CapitaLand Commercial Trust 1.830 Financial 6,852 5,709,800 Golden Agri-Resources Ltd 0.260 Consumer, Non-cyclical 3,311 5,598,500 CapitaLand Ltd 3.270 Financial 13,612 5,218,500 Source: Bloomberg Finance L.P. Page 3 Daily Focus Singapore Stock Pulse Recent Reports Report Singapore Telecom Sector: How competitive will TPG be? Singapore Monthly Strategy: Handshake or cold stare? Singapore Property: Waiting for its turn to shine Silverlake Axis Ltd: Fintech accelerator Singapore REITs: Defensive the new offensive Singapore Banks: At the crossroads Singapore 2019 Outlook and Strategy: Pitch On Value Singapore Telecom: TPG may not disrupt, attractive yield and valuations Singapore Monthly Strategy: Emerging from Red October Singapore Telecom: How will SingTel look in 5 years’ time Source: DBS Bank Dividends Company Type Particulars Ex Date Paid/Payable FIRST REAL ESTATE INV TRUST DIVIDEND 011018 - 311218 SGD 0.0112 TAX EXEMPT 23-Jan-19 28-Feb-19 FIRST REAL ESTATE INV TRUST DIVIDEND 011018 - 311218 SGD 0.0007 LESS TAX 23-Jan-19 28-Feb-19 FIRST REAL ESTATE INV TRUST DIVIDEND 011018 - 311218 SGD 0.0096 23-Jan-19 28-Feb-19 TEE INTERNATIONAL LIMITED RIGHTS OFFER OF 38 FOR 100 @ SGD 0.1 23-Jan-19 24-Jan-19 MAXI-CASH FIN SVCS CORP LTD DIVIDEND SGD 0.003 ONE-TIER TAX 24-Jan-19 08-Feb-19 PNE INDUSTRIES LTD DIVIDEND SGD 0.03 ONE-TIER TAX 24-Jan-19 15-Feb-19 ESR-REIT DIVIDEND 161018 - 311218 SGD 0.00047 25-Jan-19 28-Feb-19 ESR-REIT DIVIDEND 161018 - 311218 SGD 0.00794 LESS TAX 25-Jan-19 28-Feb-19 FRASERS COMMERCIAL TRUST DIVIDEND 011018 - 311218 SGD 0.005151 25-Jan-19 01-Mar-19 011018 - 311218 SGD 0.005505 TAX FRASERS COMMERCIAL TRUST DIVIDEND EXEMPT 25-Jan-19 01-Mar-19 NAM LEE PRESSED METAL INDS DIVIDEND SGD 0.005 ONE-TIER TAX 25-Jan-19 11-Feb-19 NAM LEE PRESSED METAL INDS DIVIDEND SGD 0.02 ONE-TIER TAX 25-Jan-19 11-Feb-19 RHT HEALTH TRUST DIVIDEND SGD 0.752 ONE-TIER TAX 25-Jan-19 04-Feb-19 MAPLETREE LOGISTICS TRUST DIVIDEND 28SEP-31DEC,DRP SGD 0.00075 28-Jan-19 07-Mar-19 GDS GLOBAL LIMITED DIVIDEND SGD 0.005 ONE-TIER TAX 28-Jan-19 08-Feb-19 28SEP-31DEC,DRP SGD 0.01079 TAX MAPLETREE LOGISTICS TRUST DIVIDEND EXEMPT 28-Jan-19 07-Mar-19 FRASER AND NEAVE, LIMITED DIVIDEND SGD 0.03 ONE-TIER TAX 04-Feb-19 20-Feb-19 FRASERS PROPERTY LIMITED DIVIDEND SGD 0.062 ONE-TIER TAX 04-Feb-19 20-Feb-19 JUMBO GROUP LIMITED DIVIDEND SGD 0.007 ONE-TIER TAX 04-Feb-19 18-Feb-19 GOODLAND GROUP LIMITED DIVIDEND SGD 0.003 ONE-TIER TAX 07-Feb-19 15-Feb-19 THAI BEVERAGE PUBLIC CO LTD DIVIDEND THB 0.24 LESS TAX 07-Feb-19 28-Feb-19 DUTY FREE INTERNATIONAL DIVIDEND SGD 0.01 ONE-TIER TAX 11-Feb-19 07-Mar-19 KEONG HONG HOLDINGS DIVIDEND SGD 0.02 ONE-TIER TAX 15-Feb-19 27-Feb-19 LYXOR ASIA 10 ENTITLEMENT MERGER 20-Feb-19 21-Feb-19 LYXOR CHINA H 10 ENTITLEMENT MERGER 20-Feb-19 21-Feb-19 ASPIAL CORPORATION LIMITED DIVIDEND SGD 0.0025 ONE-TIER TAX 27-Feb-19 08-Mar-19 Source: SGX Page 4 Daily Focus Singapore Stock Pulse Share buy-back Name D.O.T.