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17 September, 2015

DBS Group Research . Equity

Singapore Traders Spectrum

Model PortfolioRefer to important disclosures at the end of this report

Singapore Portfolio Changes

1. Add OCBC to Balanced and Blue Chips portfolio

2. Remove City Developments from Blue Chips portfolio

Portfolio Performance Review

The Straits Times Index is lower by 13.1% since the Model Portfolio inception on August 14 2014. Our overall Singapore model portfolio by market

capitalization outperformed the STI by 7.3%. *all prices are taken with ref. to 16 September 2015 closing

2

4

6

8

Singapore - Portfolio Performance vs ST Index

Outperform

%

1

Source for all data: DBS Bank, Bloomberg Finance L.P.

sa: YM

Yeo Kee Yan (65) 6682 3706 [email protected]

Ling Lee Keng (65) 6682 3703 [email protected]

Conservative

The portfolio's market capitalization outperformed th STI by 14.1%. Mapletree Greater China Commercial Trust, which was included since portfolio

inception, continues to deliver positive performance of 8.8%. This is followed by Frasers Commercial Trust. There is no new inclusion.

-4

-2

0

Underperform

P rice Target Div

(S ) Price upside P/E (x ) Yld (%)

( ) (%) FY15F FY15F FY16F FY14

Conservative

Mapletree Greater China CommercialTrust

0.93 1.12 20.5 8.8 16.7 22.4 3.3 7.0

Frasers Commercial Trust 1.31 1.51 14.9 0.2 15.5 (5.0) 3.4 6.5

ST Engineering 2.96 3.40 14.9 (8.2) 17.4 (0.1) 0.9 5.1

Company EPS Growth (%)

gain

/(loss)

% incl

di v

1

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Model Portfolio


Balanced

The portfolio's market capitalization outperformed the STI by 17.4%, the best performing perfolio. Yangzijiang performed best with its inclusion

into the STI fueling the latest rebound despite market volatility. Our decision to remove OCBC on 6 August was the right decision as the stock

price fell 12.7% since. With the correction, we add OCBC back again.

# addition

Growth

The portfolio's market capitalization underperformed the STI by 28.6%. Ezion remains the main drag while Interplex managed a slight gain

despite recent market volatility. We maintain our picks in this category.

Blue Chips

The portfolio's market capitalization outperformed the STI by 7%. Our decision to remove OCBC on 6 August was the right decision as the stock

price fell 12.7% since. With the correction, we add OCBC back again. We remove City Developments from the portfolio

Pr ic e Ta rge t Div

(S ) Pr ic e ups id e P/E (x) Yld (%)

( ) (%) FY15F FY15F FY1 6F FY14

B a l a n c e

Yangzijiang Shipbuilding 1.23 1.62 31.7 11.7 6.6 (7.3) 8.2 5.0

China Me rcha nts Hldgs (Pa cific) 0.92 1.45 58.0 9.8 9.7 (3.0) 2.4 7.6

Frasers Centrepoint Ltd 1.505 2.36 56.7 (10.9) 6.8 32.3 15.8 4.1

SIA 10.280 11.50 11.9 (1.0) 20.3 78.6 41.4 2.1

OCBC # 8.970 10.00 11.5 0.0 9.2 3.3 4.6 4.0

Co mpa ny EPS Growth (%)

g a i n

/( loss)

% inc l

d iv

Pr ic e Ta rge t Div

(S ) Pr i c e ups ide P/E (x) Yld (%)

( ) (%) FY15 F FY1 5F FY16F FY1 4

Growth

Ezion Holdings 0.69 1.00 45.2 (60.3) 5.6 (23.3) 76.2 0.1

Interplex 0.65 0.71 10.1 0.8 8.5 75.9 12.8 6.0

Tiger Airways 0.29 0.38 33.3 (12.3) 18.3 nm 41.4 -

Compa n y EPS Growth (%)

g a i n

/( loss)

% inc l

d iv

2

# addition ^ removed


price fell 12.7% since. With the correction, we add OCBC back again. We remove City Developments from the portfolio

Price Target Div

(S ) Price upside P /E (x ) Yld (%)

( ) (%) FY15F FY15F FY16F FY14

Blue Chips

CapitaLand 2.77 4.11 48.3 (13.9) 16.5 (38.5) 6.6 3.2

City Developments ^ 8.050 10.26 27.4 (19.9) 11.3 (14.3) 17.1 2.0

SIA 10.280 11.50 11.9 (1.0) 20.3 78.6 41.4 2.1

ST Engineering 2.96 3.40 14.9 (8.2) 17.4 (0.1) 0.9 5.1

SembCorp Inds 3.38 4.00 18.3 (3.9) 8.8 (14.8) 5.0 4.7

OCBC # 8.970 10.00 11.5 0.0 9.2 3.3 4.6 4.0

Company EPS Growth (%)

gain

/(loss)

% incl

div

2

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Model Portfolio


-10

-5

0

5

10

15

20

25

30

35

Hong Kong - Portfolio Performance vs Hang Seng Index

Outperform

Underperform

%


-10

Underperform

3

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Price: S$0.930 TP: S$1.12 Upside: 20.5%

Entry date: 14-Aug-14 Entry price ($): S$0.915

Days passed: 400 Dividend received: S$0.066

% gain/(loss): 8.8%

Price: S$1.31 TP: S$1.51 Upside: 14.9%Entry date: 26-Aug-14 Entry price ($) S$1.40

Days passed 388 Dividend received S$0.093

% gain/(loss) 0.2%

Sector: REITs

Frasers Commercial

Trust

ST Engineering Secure dividend yield of around 4% remains the key positive support

for the stock, and is underpinned by strong operating cash flows and

Strong and visible organic growth to drive bottomlineapletree Greater

China Commercial Trust

Your investment goal is to seek income while protecting your capital. You accept a fairly stable stock price

fluctuation with a moderate level of dividend income. The investment horizon is up to 12 months.

Sector: REITs

Conservative


Model Portfolio

Growth driven by Alexandra Technopark (ATP) in 2015

Price Chart

Price Chart

Price Chart

0.85

0.90

0.95

1.00

1.05

1.10

1.15

Sep-14 Dec-14 Mar-15 Jun-15 Sep-15

S$

1.10

1.20

1.30

1.40

1.50

1.60


S$

3.90

S$

4


Entry date: 17-Jun-15 Entry price ($): S$3.28


% gain/(loss): -9.8%

Sector: Industrial

PriceChart

2.70

2.90

3.10

3.30

3.50

3.70

3.90


S$

4

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Entry date: 14-Aug-14 Entry price ($): S$1.74


% gain/(loss): -60.3%

Price: S$0.645 TP: S$0.71 Upside: 10.1%Entry date: 17-Mar-15 Entry price ($) S$0.640


% gain/(loss) 0.8%

Your primary investment goal is capital growth. You can tolerate a fair amount of fluctuations in the value of

your stock investment in anticipation of possible higher returns. The investment horizon is up to 12 months.

Model Portfolio


Sector: Oil & Gas

Interplex

Growth

Capacity discipline to boost load factors and yields, leading to

One of the most resilient Oil & Gas plays, with long-term charter of 3-

5 years, solid 3-year order backlog and reputable clientele

Ezion

Earnings recovery is driven by the US, a key market for automotive

products which should see steady growth in demand from lower fuel

cost

Sector: Industrials

Tiger Airways

Price Chart

Price Chart

Price Chart

0.50

0.70

0.90

1.10

1.30

1.50

1.70

1.90

2.10


S$

0.45

0.50

0.55

0.60

0.650.70

0.75

0.80


S$

S$

6


Entry date: 17-Mar-15 Entry price ($): S$0.325

Days passed: 185 Dividend received: S$0.000% gain/(loss): -12.3%

sus a ne earn ngs recovery. ower ue cos s o c n more

significantly from this quarter onwards

Sector: Consumer

Price Chart

0.20

0.25

0.30

0.35

0.40


S$

6

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Model Portfolio


Entry date: 14-Aug-14 Entry price ($) S$3.32


% gain/(loss) -13.9%


Entry date: 17-Jun-15 Entry price ($) S$10.560Days passed 93 Dividend received S$0.170

% gain/(loss) -1.0%

ST Engineering

SIA MERS concerns are overblown whilst lower fuel costs will provide

concrete boosts to SIAs bottom line

Sector: Consumer Services

You look to include blue chips into your portfolio to provide steady growth over a longer time period. Blue

chips tend to be more stable and their holding period can extend beyond a year.

Growing operations in Singapore and China residential. Privatisation of

CMA a key driver towards lifting profits and ROEs for the group. Capital

re-cycling potential either through its REITs or funds

Secure dividend yield of around 4% remains the key positive support

for the stock, and is underpinned by strong operating cash flows and

a healthy balance sheet

Blue Chips


Sector: Real Estate

Capitaland

Price Chart

Price Chart

Price Chart

2.60

2.80

3.00

3.20

3.40

3.60

3.80

4.00


S$

9.00

10.00

11.00

12.00

13.00


S$

3.70

3.90

S$

7


Entry date: 17-Jun-15 Entry price ($): S$3.28




Entry date: 03-Aug-15 Entry price ($) S$3.57


% gain/(loss) 0.0%

Sector: Industrial

While the Singapore power business remains under pressure, we could

expect the ramp-up in India power plants to drive sequential

improvement. Valuation is undemanding.

SembCorp Inds

Sector: Industrial

Price Chart

2.70

2.90

3.10

3.30

3.50

3.70

3.90


2.50

3.00

3.50

4.00

4.50

5.00

5.50


S$

7

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Entry date: 17-Sep-15 Entry price ($): S$8.97

Days passed: 1 Dividend received: S$0.000% gain/(loss): 0.0%


Model Portfolio

Sector: Banks

OCBC

Blue Chips

OCBCs business in Greater China has been enhanced with the

acquisition of Wing Hang BankPrice Chart

9.00

9.40

9.80

10.20

10.60

11.00


S$

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3968 HK

Price: HK$18.60 TP: HK$26.82 Upside: 44.2%

Entry date: 14-Aug-14 Entry price ($) HK$15.40

Days passed 400

% gain/(loss) 20.8%

1109 HK

Price: HK$18.80 TP: HK$32.50 Upside: 72.9%Entry date: 11-Nov-14 Entry price ($) HK$17.30

Days passed 311

% gain/(loss) 8.7%

Sector: Banks

China Merchants Bank

China Resources Land One of the few developers who has potential to succeed in Chinas retail

market place

Sector: Real Estate

Tencent Holdings Leader in online gaming; launch of Weixin is an important step to

monetise Tencents >800m users

We like CMB for its outstanding corporate governance and risk

management strategy, strong retail franchise and online platform, as

well as its transparent and consistent disclosure.

You look to diversity your risks by investing in foreign companies. You can tolerate fluctuations in the value

of your stock investments from currency exchange and country risks.

Asian Exposure


Model Portfolio

Price Chart

Price Chart

Price Chart

10

13

16

19

22

25

28

Aug-14 Nov-14 Feb-15 May-15 Aug-15

HK$

12

14

16

18

20

2224

26

28

30


HK$

180

HK$

9

700 HK


Entry date: 16-Feb-15 Entry price ($): HK$130.50

Days passed: 214

% gain/(loss): 3.8%

1099 HK


Entry date: 27-Mar-15 Entry price ($): HK$29.60

Days passed: 175


Sector: Technology

Sinopharm Decent earnings CAGR of 21% (2014-17F) driven by penetration into

rural areas, market share gains from small players, better economic of

scale

Sector: Healthcare

PriceChart

Price Chart

90

100

110120

130

140

150

160

170

180


HK$

19

24

29

34

39

44


HK$

9

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Model Portfolio

1766 HK


Entry date: 12-May-15 Entry price ($): HK$15.00

Days passed: 129

% gain/(loss): -34.7%

3393 HK


Entry date: 12-May-15 Entry price ($): HK$11.76

Days passed: 129

% gain/(loss): -28.2%

3360 HK


Entry date: 03-Aug-15 Entry price ($): HK$7.09

We expect fast lease growth to continue. Hospital management has

great potential amid healthcare reform.

Sector: Banks

CRRC Corp Expect global rolling stock industry to trend upward on potential new

investments; domestic demand growing

Sector: Industrials

Asian Exposure


Wasion Group We like Wasion for its overseas expansion potential and Chinas

continued spending on energy conservation. Expects robust earnings

growth of 20-35% in these two years

Sector: Industrials

Far East Horizon

Price Chart

Price Chart

3

6

9

12

15

18

21


HK$

56

7

8

9

10

11

12

13


HK$

Price Chart

7.00

8.00

9.00

HK$

10

Days passed: 46

% gain/(loss): -14.5%

1316 HK



Days passed: 46

% gain/(loss): 18.9%

2393 HK

Price: HK$3.05 TP: HK$0.00 -Upside: 100.0%


Days passed: 46

% gain/(loss): 2.0%


Nexteer is the world's leading electronic power steering producer. Push

for fuel-efficiency is triggering shift from hydraulic power steering to

electronic systems.

Nexteer Automotive

Sector: Consumer

Goods

Yestar International In-vitro diagnostic business to drive earnings growth; more acquisitions

to come.

Sector: Industrials

Price Chart

Price Chart

5.00

6.00

7.00


5

6

7

8

9

10

11


HK$

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50


HK$

10

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Model Portfolio

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

Traders Spectrums product is oriented towards readers with a short-term trading horizon. It aims to highlight topical themes, which may movestock prices on a daily basis. Readers should be aware that TS Take relies more on assessments of technical factors, likely sentiment responsesand 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. Inkeeping with the short-term orientation of the product, a stock highlighted may or may not be covered or commented on an ongoing basis.

GENERAL DISCLOSURE/DISCLAIMER

This report is prepared by DBS Bank Ltd. This report is solely intended for the clients of DBS Bank Ltd and DBS Vickers Securities (Singapore) Pte Ltd,its respective connected and associated corporations and affiliates (collectively, the DBS Vickers Group) only and no part of this document maybe (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 DBSBank Ltd., its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively,the DBS Group)) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject tochange without notice. This document is prepared for general circulation. Any recommendation contained in this document does not have regardto the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information ofaddressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legalor financial advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss ofprofit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. Thisdocument 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/orpersons associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group may havepositions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking andother banking services for these companies.

Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there canbe 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 and it

may not contain all material information concerning the company (or companies) referred to in this report.

The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates andassumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates onwhich the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actualresults. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIEDUPON 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 riskassessments stated therein.

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 thecommodity referred to in this report.

DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, does not have its own investment banking or researchdepartment, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months.

ANALYST CERTIFICATION

The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companiesand their securities expressed in this report accurately reflect his/her personal views. The analyst also certifies that no part of his/her compensationwas, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of the date the report ispublished, the analyst and his/her spouse and/or relatives who are financially dependent on the analyst, do not hold interests in the securitiesrecommended in this report (interest includes direct or indirect ownership of securities).

COMPANY SPECIFIC / REGULATORY DISCLOSURES

1.

DBS Bank Ltd., DBS Vickers Securities (Singapore) Pte Ltd (DBSVS), their subsidiaries and/or other affiliates do not have aproprietary position in the securities recommended in this report as of 31 Aug 2015 except City Development, Mapletree GreaterChina Commercial Trust, Frasers Commercial Trust, ST Engineering, Yangzijiang Shipbuilding, OCBC, Singapore Airlines, Ezion

Holdings, CapitaLand, Sembcorp Industries, China Resources Land, Tencent , Sinopharm Group, CRRC Corp, China MerchantsBank.

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Model Portfolio

2. DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates beneficially own a total of 1% of any class of commonequity securities of Keppel DC REIT, Mapletree Greater China Commercial Trust as of 31 Aug 2015.

3.

Compensation for investment banking services:

DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates have received compensation, within the past 12 months,and within the next 3 months may receive or intends to seek compensation for investment banking services from FrasersCommercial Trust, Ezion Holdings, Tiger Airways Holdings.

DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment bankingtransaction as a manager or co-manager 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 documentshould contact DBSVUSA exclusively

RESTRICTIONS ON DISTRIBUTION

General

This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of orlocated in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would becontrary to law or regulation.

Australia

This report is being distributed in Australia by DBS Bank Ltd. (DBS) or DBS Vickers Securities (Singapore) Pte Ltd (DBSVS),both of which are exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act2001 (CA) in respect of financial services provided to the recipients. Both DBS and DBSVS are regulated by the MonetaryAuthority of Singapore under the laws of Singapore, which differ from Australian laws. Distribution of this report is intended

only for wholesale investors within the meaning of the CA.

Hong Kong

This report is being distributed in Hong Kong by DBS Vickers (Hong Kong) Limited which is licensed and regulated by theHong Kong Securities and Futures Commission.

Indonesia

This report is being distributed in Indonesia by PT DBS Vickers Securities Indonesia.

Malaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received fromADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with thisreport. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advisedthat ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connectedand associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with anyof them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seekto perform broking, investment banking/corporate advisory and other services for the subject companies. They may also havereceived compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and otherservices from the subject companies.

Wong Ming Tek, Executive Director, ADBSR

Singapore

This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No.198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by theMonetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreignentities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the FinancialAdvisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, ExpertInvestor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such personsonly to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from,or in connection with the report.

Thailand

This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Research reports distributed are onlyintended for institutional clients only and no other person may act upon it.

United

Kingdom

This report is being distributed in the UK by DBS Vickers Securities (UK) Ltd, who is an authorised person in the meaning ofthe Financial Services and Markets Act and is regulated by The Financial Conduct Authority. Research distributed in the UK is

intended only for institutional clients.Dubai

This research report is being distributed in The Dubai International Financial Centre (DIFC) by DBS Bank Ltd., (DIFC Branch)having its office at PO Box 506538, 3

rdFloor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC),

Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. Thisresearch report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act uponit.

United States

Neither this report nor any copy hereof may be taken or distributed into the United States or to any U.S. person except incompliance with any applicable U.S. laws and regulations. It is being distributed in the United States by DBSVUSA, whichaccepts responsibility for its contents. Any U.S. person receiving this report who wishes to effect transactions in any securitiesreferred to herein should contact DBSVUSA directly and not its affiliate.

Other

jurisdictions

In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified,professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

DBS Bank Ltd.12 Marina Boulevard, Marina Bay Financial Centre Tower 3

Singapore 018982Tel. 65-6878 8888

Company Regn. No. 196800306E

Documents

150918 - DBS