Daily Focus Singapore Stock Pulse Refer to important disclosures at the end of each report DBS Equity Research 20 Nov 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%) Research Call Alert Sue Lin LIM / Rui Wen LIM • Trending Sectors : Asian Insights SparX: Natural Gas & LNG -Key Regional Trends ll : LNG Strong 1Q18; keep watch on dividends ahead solutions in prime play • 1Q18 earnings were in line; topline driven largely from higher NIM; lower trading gains offsetIdeas some of the revenues Day • ActionableCredit costs ideas atby newour analysts low of based 23bps, on macro,guidance industry at 20 or- corporate25bps possibly developments towards the lower end; stillTrending some Sectors buffers noted under the Expected Credit Losses line for other assets Asian Insights SparX: Natural Gas & LNG -Key Regional Trends ll : • LNGPositive solutions outlook in prime ahead, play topline growth supported by lower credit costs; dividends should be sustainable at S$1.00 per year and could head higher • We project global Liquefied Natural Gas (LNG) demand will grow at more than 6% CAGR till 2025 and spur another wave of investment in liquefaction (export) facilities to meet demand • Maintainbeyond BUY;2022 timeframeTP at S$33.20 (1.5x FY18 BV); higher dividends and lower credit • LNG regasification (import) infrastructure in Asia will also get a boost and apart from China and costs are upsideIndia, other risks Asian LNG importers like Thailand, Vietnam, Bangladesh et al will also emerge as key drivers of LNG regasification infrastructure to be built in the future Read •more..DBS Floating Group Storage Research. Regasification Equity Units (FSRUs) or offshore receiving (import) terminals are likely to be preferred over onshore terminals as the import solution of choice in these new emerging 30 LNG markets in Asia • Demand for LNG Carriers (LNGCs) – shipping vessels connecting LNG export and import terminals – will also pick up in line with greater LNG use, and LNGC supply beyond 2022 DBS Equityappears Research insufficient; we expect large orders soon from5 LNG June exporting 2018 countries • Expect more orders for Floating LNG (FLNG) – offshore gas production units – also, as significant proportion of new LNG developments will be located further offshore Market Cap: US$37,268m | Average Daily Value: US$70.43m • Prime beneficiaries of the above trends include the big three South Korean yards, but leading Chinese and Singapore shipyards, namely Keppel O&M, Sembcorp Marine, Yangzijiang, Last TradedHu Price:dong- Zhonghua,S$29.99; willPrice also Target: enjoy the S$33.20 spill over (Upside and leverage 10.7%) on this demand uptrend as they build their track record in gas facilities Sue LinRead LIM more… / Rui Wen LIM Strong 1Q18; keep watch on dividends ahead ed: JS• / sa: PY, CS 1Q18 earnings were in line; topline driven largely from higher NIM; lower trading Daily Focus Singapore Stock Pulse Sembcorp Industries Sembcorp Marine Yangzijiang Shipbuilding BUY HOLD BUY Last Traded Price: S$2.26 Last Traded Price: S$1.27 Last Traded Price: S$1.06 Price Target (12-mth): S$2.90 Price Target (12-mth): S$1.40 Price Target (12-mth): S$1.68 Upside 28.3% Upside 10.2% Upside 58.4% Stocks to Watch Singtel Mapletree North Asia Company Name HOLD Commercial Trust • Last Traded Price: S$3.19 BUY Price Target (12-mth): S$3.12 Last Traded Price: S$1.15 Price Target (12-mth): S$1.60 Upside -2.2% Upside 39.1% Bharti Airtel to raise mobile tariffs early Festival Walk remains closed • Bharti Airtel, an associate of • Festival Walk remains closed Singtel, has announced an until further notice due to intention to raise mobile extensive damage incurred tariffs effective from Dec 1 • Recovery works are ongoing, • Local competitors Vodafone assessment of claims from Idea and Reliance Jio have insurers is underway, and announced similar plans they are assisting and • Bharti also said that the working with tenants Telecom Regulatory Authority • The mall has been closed of India will likely initiate since 2pm on 12 November discussions to bring • Based on FY21F DPU rationality in pricing amid projection of 7.9 Scts, the +1 depressed prices SD yield of 7.5% is at S$1.05/unit while the historical mean yield of 6.9% is at S$1.14/unit Page 2 Daily Focus Singapore Stock Pulse DBS Equity Picks Our stock picks aim to help investors build a portfolio of Singapore stocks, based on their risk profiles. Stock picks are based on sectoral, fundamental, and technical analysis Blue Chips City Developments UOB Yangzijiang Shipbuilding (Holdings) Ltd Entry Date: 15 Nov 2019 Entry Date: 29 Oct 2019 # of shares: 1,300 # of shares: 400 Entry Date: 14 Oct 2019 Entry Price: $10.52 Entry Price: $26.09 # of shares: 10,000 Entry Price: $0.97 Last Traded Price: S$10.850 Last Traded Price: S$26.670 Last Traded Price: S$1.060 Growth Jumbo Group Entry Date: 12 Jun 2019 # of shares: 13,000 Entry Price: $0.375 Entry Date: 3 May 2019 # of shares: 8,700 Entry Price: $0.41 Last Traded Price: S$0.390 Dividends CDL Hospitality Trusts Far East Hospitality Trust Koufu Group Limited Entry Date: 10 Sept 2019 Entry Date: 31 Oct 2019 Entry Date: 14 Oct 2019 # of shares: 3,000 # of shares: 12,000 # of shares: 12,000 Entry Price: $1.63 Entry Price: $0.71 Entry Price: $0.725 Entry Date: 30 Aug 2019 Last Traded Price: S$0.720 Last Traded Price: S$0.790 # of shares: 7,000 Entry Price: $1.59 Entry Date: 13 Nov 2019 # of shares: 4,800 Last Traded Price: S$1.590 Entry Price: $0.750 Manulife US Real Estate Inv Sheng Siong Group Ltd SIA Engineering Page 3 Daily Focus Singapore Stock Pulse Entry Date: 23 Aug 2019 Entry Date: 30 Jul 2019 Entry Date: 4 Nov 2019 # of shares: 6,000 # of shares: 7,500 # of shares: 4,500 Entry Price: $0.895 Entry Price: $1.11 Entry Price: $2.65 Entry Date: 1 Aug 2019 Last Traded Price: S$1.230 Last Traded Price: S$2.870 # of shares: 7,000 Entry Price: $0.89 Last Traded Price: US$0.950 Straits Times Index Year End Objective: 3,380 Support Current Resistance level Level 3,220 3,320 3,239 3,190 3,350 Source: DBS Bank, Bloomberg Finance L.P. 10 most active traded STI component stocks Prices as of Mkt Cap Company 19 Nov 19 Sector (S$m) Volume Golden Agri-Resources Ltd 0.240 Consumer Goods 3,056 52,410,300 Yangzijiang Shipbuilding Holdings Ltd 1.060 Industrial 4,154 45,595,600 Singapore Telecommunications Ltd 3.190 Telecom 52,090 33,259,200 Ascendas Real Estate Investment Trust 2.930 REITs 9,265 18,231,300 Mapletree Commercial Trust 2.320 REITs 7,184 13,040,500 ComfortDelGro Corp Ltd 2.360 Consumer Services 5,111 12,954,100 Genting Singapore PLC 0.945 Consumer Services 11,394 12,158,300 CapitaLand Commercial Trust 2.010 REITs 7,754 9,433,300 CapitaLand Mall Trust 2.540 REITs 9,370 7,147,300 Thai Beverage PCL 0.905 Consumer Goods 22,728 6,272,000 Source: Bloomberg Finance L.P. Page 4 Daily Focus Singapore Stock Pulse Recent Reports Report Prime US REIT: Good time, great place! Singapore Monthly Strategy: Less cloudy ahead Delfi Ltd: In for a sweet treat Sembcorp Group: Back to fundamentals Centurion Corporation: A home, away from home Telecom Sector: Wait or bargain hunt? Banks: NIM pressures likely to kick in Monthly Strategy: Back to the negotiation table Sabana Shari'ah Compliant REIT : Navigating a sharp bend Singapore downstream F&B : Mass-market F&B set to sizzle Source: DBS Bank Dividends Company Type Particulars Ex Date Paid/Payable Rate: SGD 0.0025 Per FU YU CORPORATION LTD DIVIDEND Security 20-Nov-19 05-Dec-19 JAPAN FOODS HOLDING LTD. DIVIDEND Rate: SGD 0.01 Per Security 20-Nov-19 06-Dec-19 KSH HOLDINGS LIMITED DIVIDEND Rate: SGD 0.01 Per Security 20-Nov-19 28-Nov-19 PAN HONG HOLDINGS GROUP LTD DIVIDEND 2 Cash Options 20-Nov-19 18-Dec-19 BOUSTEAD SINGAPORE LIMITED DIVIDEND Rate: SGD 0.01 Per Security 21-Nov-19 06-Dec-19 VALUETRONICS HOLDINGS LIMITED DIVIDEND Rate: HKD 0.06 Per Security 22-Nov-19 10-Dec-19 SATS LTD. DIVIDEND Rate: SGD 0.06 Per Security 25-Nov-19 11-Dec-19 AACIREITMTNS$30M4.35%N191205S 2 ENTITLEMENT Rate: 100% 27-Nov-19 05-Dec-19 CHINA SUNSINE CHEM HLDGS LTD. ENTITLEMENT Ratio: 1:2 27-Nov-19 29-Nov-19 CIVMEC LIMITED DIVIDEND Rate: SGD 0.007 Per Security 27-Nov-19 12-Dec-19 A-SONIC AEROSPACE LIMITED DIVIDEND Rate: SGD 0.01 Per Security 28-Nov-19 12-Dec-19 Rate: MYR 0.0076 Per MEGROUP LTD. DIVIDEND Security 28-Nov-19 30-Dec-19 Rate: MYR 0.0017 Per MEGROUP LTD. DIVIDEND Security 28-Nov-19 30-Dec-19 UMS HOLDINGS LIMITED DIVIDEND Rate: SGD 0.005 Per Security 02-Dec-19 17-Dec-19 JAWALA INC. DIVIDEND Rate: SGD 0.004 Per Security 02-Dec-19 12-Dec-19 Rate: SGD 0.0261 Per ACCORDIA GOLF TRUST DIVIDEND Security 03-Dec-19 18-Dec-19 TTJ HOLDINGS LIMITED DIVIDEND Rate: SGD 0.004 Per Security 03-Dec-19 18-Dec-19 KHONG GUAN LIMITED DIVIDEND Rate: SGD 0.02 Per Security 04-Dec-19 12-Dec-19 SINGAPORE PRESS HLDGS LTD DIVIDEND Rate: SGD 0.055 Per Security 06-Dec-19 20-Dec-19 Page 5 Daily Focus Singapore Stock Pulse SINGAPORE PRESS HLDGS LTD DIVIDEND Rate: SGD 0.01 Per Security 06-Dec-19 20-Dec-19 TOP GLOVE CORPORATION BHD DIVIDEND Rate: MYR 0.04 Per Security 09-Dec-19 23-Dec-19 BREADTALK GROUP LIMITED DIVIDEND Rate: SGD 0.005 Per Security 11-Dec-19 20-Dec-19 ASIAN PAY TELEVISION TRUST DIVIDEND Rate: SGD 0.003 Per Security 16-Dec-19 24-Dec-19 Source: SGX Share buy-back Name D.O.T.