Daily Focus Singapore Stock Pulse Refer to important disclosures at the end of each report DBS Equity Research 9 Jan 2019 Market Cap: US$37,268m | Average Daily Value: US$70.43m Yeo Kee Yan, CMT [email protected] Last Traded Price: S$29.99; Price Target: S$33.20 (Upside 10.7%) Singapore Research Team Sue LinResearch LIM / Rui CallWen Alert LIM Strong 1Q18; keep watch on dividends ahead • Singapore Monthly Strategy : Handshake or cold stare? • 1Q18 earnings were in line; topline driven largely from higher NIM; lower trading gains offset some revenues Market View Update • Credit costs at new low of 23bps, guidance at 20-25bps possibly towards the lower Handshake or cold stare? end;Straits still someTimes Indexbuffers (Daily) noted under the Expected Credit Losses line for other assets • Positive outlook ahead, topline growth supported by lower credit costs; dividends should be sustainable at S$1.00 per year and could head higher • Maintain BUY; TP at S$33.20 (1.5x FY18 BV); higher dividends and lower credit costs are upside risks Read more..DBS Group Research. Equity 30 Source: DBS Bank • STI rangebound at 2960-3190 pending outcome of US-China trade talks DBS •Equity Adding Research a Bull-case scenario of STI at 3500 5 June 2018 • Transiting to mid-contraction phase - SembCorp Industries, Netlink Market Cap: US$37,268m | Average Daily Value: US$70.43m • S-REITs still in favour as FED turns dovish - CMT, MCT, MLT, FLT, MAGIC Last •Traded Sticking Price: to defensives S$29.99; - ST P Ericengineering, Target: Yangzijiang, S$33.20 (Upside ComfortDelgro, 10.7%) CMT, MLT, Netlink Trust, UOB Sue LinRead LIM more…/ Rui Wen LIM Strong 1Q18; 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 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$1.01 Last Traded Price: S$2.940 Last Traded Price: S$3.550 Price Target Price Target Price Target (12-mth): S$1.55 (12-mth): S$3.59 (12-mth): S$4.15 Upside 53.5% Upside 22.1% Upside 16.9% Thai Beverage Public Company BUY Last Traded Price: S$0.630 Price Target (12-mth): S$0.87 Upside 37.5% Growth Genting Singapore BUY Last Traded Price: S$1.01 Price Target (12-mth): S$1.55 Upside 53.5% Dividends Ascendas India Trust Mapletree Logistics Trust Mapletree North Asia BUY BUY Commercial Trust Last Traded Price: S$1.06 Last Traded Price: S$1.300 BUY Price Target Price Target Last Traded Price: S$1.160 (12-mth): S$1.25 (12-mth): S$1.50 Price Target Upside 17.9% Upside 15.2% (12-mth): S$1.45 Upside 25.0% Singtel ST Engineering BUY BUY Last Traded Price: S$2.940 Last Traded Price: S$3.550 Price Target Price Target (12-mth): S$3.59 (12-mth): S$4.15 Upside 22.1% Upside 16.9% Page 2 Daily Focus Singapore Stock Pulse Straits Times Index Year End Objective: 3,250 Support Current Resistance level Level 3,070 3,150 3,123 3,000 3,190 Source: DBS Bank, Bloomberg Finance L.P. 10 most active traded STI component stocks Price (S$) Mkt Cap Company 8 Jan 2019 Sector (S$m) Volume Thai Beverage PCL 0.630 Consumer Goods 15,820 37,939,300 Yangzijiang Shipbuilding Holdings Ltd 1.270 Industrial 5,011 18,002,100 Singapore Telecommunications Ltd 2.940 Telecom 48,008 17,815,200 Genting Singapore PLC 1.010 Consumer Services 12,165 14,119,600 CapitaLand Mall Trust 2.320 REITs 8,554 10,530,500 Ascendas Real Estate Investment Trust 2.650 REITs 8,243 10,132,600 CapitaLand Commercial Trust 1.780 REITs 6,665 9,732,700 Golden Agri-Resources Ltd 0.250 Consumer Goods 3,184 7,587,600 Singapore Press Holdings Ltd 2.490 Consumer Services 3,976 7,400,900 ComfortDelGro Corp Ltd 2.170 Consumer Services 4,698 6,362,100 Source: Bloomberg Finance L.P. Recent Reports Report Jardine Cycle & Carriage: A Southeast Asian proxy 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 Japfa Ltd: Value in this animal protein play Source: DBS Bank Page 3 Daily Focus Singapore Stock Pulse Dividends Company Type Particulars Ex Date Paid/Payable TOP GLOVE CORPORATION BHD DIVIDEND MYR 0.05 ONE-TIER TAX 10-Jan-19 25-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 NAM LEE PRESSED METAL INDS LTD DIVIDEND SGD 0.005 ONE-TIER TAX 25-Jan-19 11-Feb-19 NAM LEE PRESSED METAL INDS LTD DIVIDEND SGD 0.02 ONE-TIER TAX 25-Jan-19 11-Feb-19 FRASERS PROPERTY LIMITED DIVIDEND SGD 0.062 ONE-TIER TAX 04-Feb-19 20-Feb-19 RASER AND NEAVE, LIMITED DIVIDEND SGD 0.03 ONE-TIER TAX 04-Feb-19 20-Feb-19 THAI BEVERAGE PUBLIC CO LTD DIVIDEND THB 0.24 LESS TAX 07-Feb-19 28-Feb-19 ASPIAL CORPORATION LIMITED DIVIDEND SGD 0.0025 ONE-TIER TAX 27-Feb-19 08-Mar-19 NX09100W 190601 ENTITL. REDEMPTION 100% 27-May-19 03-Jun-19 N514100H 191001 ENTITL. REDEMPTION 100% 24-Sep-19 01-Oct-19 Source: SGX Share buy-back Name D.O.T. Buy/Sell No of shares $/shr Inch Kenneth Kajang Rubber Plc 08-Jan-19 Share Buy-Back 1,139,200 RM0.6600 Oversea-Chinese Banking Corporation Limited 08-Jan-19 Share Buy-Back 200,000 11.4800 PEC Ltd. 08-Jan-19 Share Buy-Back 73,700 0.5783 Silverlake Axis Ltd 08-Jan-19 Share Buy-Back 300,000 0.4083 Singapore Shipping Corporation Limited 08-Jan-19 Share Buy-Back 35,500 0.2900 Singhaiyi Group 08-Jan-19 Share Buy-Back 583,800 0.0896 Stamford Land Corporation Ltd 08-Jan-19 Share Buy-Back 30,000 0.4900 Sunpower Group Ltd 08-Jan-19 Share Buy-Back 80,000 0.3225 Trek 2000 International Ltd 08-Jan-19 Share Buy-Back 300,000 0.1000 Inch Kenneth Kajang Rubber Plc 07-Jan-19 Share Buy-Back 75,000 0.6700 Singapore Post Limited 07-Jan-19 Share Buy-Back 700,000 0.9300 Singapore Shipping Corporation Limited 07-Jan-19 Share Buy-Back 30,000 0.2900 Singapore Post Limited 04-Jan-19 Share Buy-Back 200,000 0.9200 Singapore Shipping Corporation Limited 04-Jan-19 Share Buy-Back 2,000 0.2900 Singhaiyi Group Ltd 04-Jan-19 Share Buy-Back 628,900 0.8595 Stamford Land Corporation Ltd 04-Jan-19 Share Buy-Back 39,000 0.4900 Sunpower Group Ltd 04-Jan-19 Share Buy-Back 233,000 0.3050 The Straits Trading Company Limited 04-Jan-19 Share Buy-Back 10,000 2.0200 Source: SGX Page 4 Daily Focus Singapore Stock Pulse Earnings Calendar - January 2019 Monday Tuesday Wednesday Thursday Friday 1 2 3 4 SPH REIT 4Q18 7 8 9 10 11 14 15 16 17 18 21 22 23 24 25 Frasers Centrepoint Keppel DC REIT 4Q18 Keppel Keppel-KBS US REIT Mapletree North Asia Trust 1Q19 Keppel Infrastructure Telecommunications & 4Q18 Commercial 3Q19 Keppel REIT 4Q18 Trust 4Q18 Transportation Ltd Keppel Corporation 4Q18 4Q18 28 29 30 31 M1 4Q19 Source: Bloomberg Finance L.P. Page 5 Daily Focus Singapore Stock Pulse DBS Bank Ltd 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: 9 Jan 2019 08:23:05 (SGT) Dissemination Date: 9 Jan 2019 09:48:11 (SGT) Sources for all charts and tables are DBS Bank unless otherwise specified Traders Spectrum’s 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 “TS Take” relies more on assessments of technical factors, likely sentiment responses and short term money flows, rather than on fundamental analysis. As such the “TS Take” 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 Bank Ltd analysts.