Wired Weekly. Singapore Traders Spectrum 15/02/ February Refer to important disclosures at the end of this report KEY POINTS

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1 15/02/2016 Singapore Traders Spectrum Refer to important disclosures at the end of this report 15 February 2016 KEY POINTS STI Maintain view for 2500 inflexion and rise to 2750 Prefer dividend stocks in current environment - FCL, Venture, SIA Eng, Sheng Siong, ST Eng, ARA, AREIT, FCT and MCT. The Fire Monkey slipped and fell down the tree at the start of the New Lunar Year. There s a good chance it escaped with minor injuries as the branch was near the ground. At 2540, STI trades at 10.4x 12-mth forward PE and the Singapore market at 1.1x P/B. Current PE and PB valuations are comparable to previous major market troughs that included the September 2001 terrorist attack on New York, 2 nd Iraq War and SARS in 2003 as well as the 2011 Eurozone crisis. The only time the Singapore market traded lower was during major crisis such as the 97/98 AFC and the 2008/09 GFC when trough PB valuations were 14-18% lower compared to the current level. Based on these historical observations, with the exception of a financial crisis, the Singapore market has priced in plentiful of risk and in our opinion, including that of a possible technical recession. Our base case view remains for an inflexion point around the 2500 level with rebound potential to We place a higher two-thirds chance of this scenario developing for the simple reason - the world is currently not heading towards a financial crisis and Singapore is currently not in a technical recession. In a bear case scenario where current uncertainties degenerate further (e.g. fear of another financial crisis), we see STI sinking below 2500 to before we seek an inflexion point. At this lower level, the STI would have retraced 61.8% of its post-gfc bull market, with PB valuation falling to just 0.99x and PE valuation sinking below 9.77x (-2.5SD) 12-mth fwd PE. We place a lower one-third chance of this scenario developing. We maintain our preference for companies that offer dividend upsides in the current environment where growth is uncertain, and central banks (e.g. ECB, BOJ) are returning to monetary easing and the FED looks increasingly unlikely to raise rates anytime soon. Our dividend stock picks are Frasers Centrepoint Ltd, Venture Corp, SIA Engineering, Sheng Siong, ST Engineering and ARA Asset Management. Among the SREITs, Source: we DBS pick Bank Ascendas REIT, Frasers Centrepoint Trust and Mapletree Commercial Trust. Straits Times Index 3,600 3,500 3,400 3,300 3,200 3,100 3,000 2,900 2,800 2,700 2,600 2,500 ST Index 2,400 STI and 12-mth forward PE Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Source: Datastream, DBS Bank FTSE Indices 5-Day Performance Source: Bloomberg Finance L.P. 15.2x 13.8x 12.2x 10.6x FTSE Small Cap Index FTSE Small Cap Index 360 Brent Crude Oil US$/barrel 70 Brent Crude Oil Wk % YTD % F TSE Sectoral Indices 12-F eb-16 Chg Chg STI Mid Cap Small Cap All Share China Real Estate Real Estate & Dev Real Estate Inv Trust Oil & Gas Basic Materials Industrials Consumer Goods Health Care Consumer Service Telecommunication Utilities Financials Technology Yeo Kee Yan (65) keeyan@dbs.com Ling Lee Keng (65) leekeng@dbs.com ed: JS / sa: YM

2 Singapore Market Summary The Fire Monkey slipped and fell down the tree at the start of the New Lunar Year. The benchmark STI fell 84pts (-3%) last week. The decline was once again led by banks and SingTel. With interest rates in Eurozone and Japan already negative and the FED increasingly unlikely to raise rates, concern is also rising that central banks are ineffective with few bullets left to lift their ailing economies. Cheap valuations provided no respite thus far Expectations are growing that the FED may not even hike interest rates this year and the accompanying decline in the USD did not bring any reprieve from the negative sentiment. Instead, investors attention turned to the negative impact of the current slowdown on the global economy especially from China, falling corporate earnings and rising credit risks. Singapore market valuation at major troughs Event MSCI SG 12-mth fwd PE (x) Singapore Market P/B (x) 97/98 Asian Financial Crisis September Iraq War & SARS Global Financial Crisis Eurozone Crisis Current Source: DBS Bank, DataStream Holding steady our view for 2500 inflexion for a rise to 2750 The STI now trades at 10.4x 12-mth forward PE and the Singapore market at 1.1x P/B. The table below compares current valuation levels with previous major market troughs. Based on historical trends, with the exception of a financial crisis, the stock market has priced in plentiful of risk and in our opinion, including that of a possible technical recession. PE valuation lower than 97/98 AFC, Sept11, 2003 Iraq War & SARS; comparable to Eurozone crisis; higher than GFC PB valuation lower than Eurozone crisis and Sept 11; almost comparable to 2003 Iraq War & SARS; higher than 97/98 AFC and GFC STI at various fwd PE levels -2.5 sd 9.77x PE FY16 2,364-2sd x PE 2, sd 11.32x PE -1 sd x PE -0.5 sd 12.87x PE 2,739 2,926 3,114 FY17 2,531 2,733 2,933 3,132 3, mth fwd PE 2,390 2,583 2,771 2, At 2550, STI currently trades below -2SD 12-mth fwd PE. Source: DBS Bank Base case scenario - Our preferred view remains for an inflexion point around the 2500 level with rebound potential to 2750 that coincides with the 65-day exponential moving average. STI s valuation at 2750 remains a reasonable 11.32x (-1.5SD) 12-mth fwd PE despite the current uncertainties. The base case scenario foresees limited downside for the STI in the near-term and is in line with our observation that historically, the Singapore stock market tends to be underpinned during the March-April period as the exdividend dates for blue chip stocks draw near. Alternate bear case scenario - However, should current uncertainties degenerate further (e.g. mounting fears of a financial crisis) that lead to the STI slumping below the 2500 level, we see STI sinking lower to before we look for an inflexion point. At this lower level, the STI would have retraced 61.8% of its post-gfc bull market, with PB valuation falling to just 0.99x and PE valuation sinking below 9.77x (-2.5SD) 12-mth fwd PE. We place a lower one-thirds chance of this scenario developing. We place a higher two-thirds chance of this scenario developing for the simple reason - the world is currently not in a financial crisis and Singapore is currently not in a technical recession. Page 2

3 Straits Times Index (weekly) Source: DBS Bank Parking in dividend stocks According to CME FedWatch, the probability for the FED to hike rates even once this year is just 33%. That is, consensus expectation for the FED to hike rates this year remains at zero. This is a drastic change from December last year, when the expectation was for the FED to hike rates at least 3 times this year that should lift the FED funds rate to %. Meanwhile, our economist has lowered his FED rate hike expectation to 3 times (previous 4), that would lift the Fed funds rate to 1.25% by year-end. We maintain our preference for companies that offer upside in terms of dividend yields in the current environment where economic growth is uncertain, with an increasing number of central banks (e.g. ECB, BOJ) turning towards more monetary easing policies and the FED looks increasingly unlikely to raise rates anytime soon. In addition, the dividend yield for companies with resilient earnings has also risen with the stock market correction in recent months. For investors seeking to include some dividend paying stocks into their portfolio, below is the list under our coverage that you may consider. Dividend stock picks Price Target Div Company (S$) Price upside P/E (x) EPS Growth (%) Yld (%) 10-Feb ($) (%) FY16F FY16F FY17F FY15 Dividend Frasers Centrepoint Ltd Ascendas REIT Venture SIA Engineering (0.5) Frasers Centrepoint Trust (2.0) Mapletree Commercial Trust Sheng Siong Group ST Engineering ARA Asset Mgt (7.3) Source: DBS Bank 4Q15 results reporting to pick up pace It is mid-way through the 4Q results reporting season. So far, about 40% of the stocks in our coverage have released earnings. Of these, more than half are REITS. Most of the REITS reported results in line with our expectations. We have tweaked FY16F and FY17F earnings for REITS by -0.8% and -1.4% respectively. The pace of results release will pick up from this week. Key results to watch out for include the three banks, SMM, SCI, Genting, CapitaLand and Wilmar. Banks - Moderated earnings growth Page 3

4 All three banks will release their results soon UOB on Tuesday, OCBC Wednesday and DBS next Monday. We expect earnings growth of 12% for FY15. If the excitement of the NIM spike for the Singapore banks cools off now that the Fed may slow down the pace of rate hike, there leaves hardly any drivers for growth in Judging from the trends we have seen in 2015, we believe that even with the Fed rate hikes, there is not much room for NIM to rise significantly. With loan growth likely stay in the low single digits, topline growth will be slower. Non-interest income is unlikely to excite as well and may be volatile depending on markets, and to some extent, be the wildcard to earnings. As we exit the benign credit cycle, credit costs will start to accelerate. We forecast 2016 earnings growth of 6%. Upside surprise could come from higher than expected NIM increase. Every 10bps increase in NIM translates to 4-7% rise in earnings. SMM to report 4Q15 net loss; SCI to maintain dividend payout of 16 Scts in FY15 Sembcorp Marine (SMM) had issued a profit warning that it expects a net loss for 4Q15, resulting in a significant y-o-y profit decline in FY15. The challenging operating environment and project deferments were cited as key culprits. We reckon the potential losses in 4Q15 are attributable to profit reversal and impairment for the 95%- completed Marco Polo unit as well as prudent provisions for the higher risks of newbuild projects without back-to-back charter contracts. There may be more bad news to come - deferments, cancellations, asset deflation, etc. - in view of the prolonged oil crisis. Results will be released on Monday, 15 Feb. Sembcorp Industries (SCI) will release its results on Wednesday. We expect SCI to maintain similar payout of 16 Scts in FY15 (including 4 Scts interim dividend) despite the decline in recurring net profit. The successful divestments of SembSita and Bournemouth Water are expected to contribute 6.5 Scts to DPS, assuming a 30% payout ratio. Thereafter, DPS should normalize to 12 Scts per annum, representing a decent 5% dividend yield. We expect Genting to report a weaker 4Q15 VIP segment performance. In addition, with Genting implementing a more conservative provisioning policy, bad debts should remain elevated until at least 1H16. In the mass space, Genting may have also experienced a more challenging 4Q15. 4Q15 results will be released on Thursday 18 Feb. Page 4

5 Top large and small / mid cap picks TOP LARGE CAP PICKS Company Recom Price Ta rge t Price Upside Catalyst Ascendas Reit BUY % High yields of 7.0% close to - 1SD level. Strongest earnings growth amongst the large cap REITs Capitaland BUY % 1) Main business units delivering steady increases in performance 2) Asset recycling of mature assets into REITs/Funds 3) Growing recurring income base as retail malls in China stabilise Frasers Centrepoint Ltd BUY % 1) Higher recurring earnings base at close to 70% of topline offer good earnings stability 2) Potential asset sales to listed REITs to be positive catalyst Mapletree Commercial Trust BUY % One of the strongest DPU growth amongst the commercial REITS. Yields of 6.5% is attractive. SIA Engineering BUY % Worst could be over on the earnings front. Possibility of special dividends around the corner. Better entry point now. TOP SMALL / MID CAP PICKS Company Recom Price Ta rge t Price Upside Catalyst Frasers Centrepoint Trust BUY % 1) Strong earnings resilience amongst REITs with downside risk protection 2) Upside to earnings growth from AEI on major asset (northpoint) 3) Yields of 6.5% atttractive Venture Corporation BUY % 1) Beneficiary of the strong US dollar and weak ringgit. 2) Strong balance sheet and net cash position to support dividend payout of 50Scts, with a yield of c.6%. Source: DBS Bank Page 5

6 Major research reports released last week Company Recommendation Target Price ($) Key Points Plantation Companies - - 1) Malaysian Jan16 output of 1.130m MT was in line with expectations 2) But stronger-than-expected net exports had lowered inventory faster 3) Malaysian palm oil stockpile forecast to remain range-bound throughout the year 4) CPO prices under review with upside bias. Top pick: Wilmar Trendlines Group BUY (Initiating Coverage) S$0.28 Undervalued portfolio of B2B companies Perennial Real Estate Holdings BUY S$1.32 1) Steady returns in quarter ending Dec-15 2) Expected launch of TripleOne Somerset strata office sales to catalyse stock 3) Execution of China projects on track Croesus Retail Trust HOLD S$0.86 1) 2Q16 DPU of 1.79 Scts in line 2) Results boosted by acquisition of One s Mall and Torious Mall 3) Maintain HOLD, TP S$0.86 Tiger Airways Holdings - - 1) SIA announced on 5 Feb that it had received c % acceptance for its offer for Tiger Airways shares at S$0.45 per share 2) The closing date of the offer and PCCS offer is extended until 5.30pm, 19 February ) SIA intends to delist Tiger Airways and whoever remains as shareholders after the close of the offer will be shareholders in an unlisted company 4) Trading of Tiger Airways Holdings shares on the SGX will be suspended after the offer closes 5) Tiger Airways shareholders who accept the offer will be granted an option to subscribe for SIA shares at S$ per share Singapore Airlines - - 1) 3Q16 (FYE Mar) EBIT rises 97% y-o-y to S$288m, led mainly by lower fuel costs, despite revenue falling by nearly 4% y-o-y to S$3,941m 2) Core net profit before exceptionals increase 88% y-o-y to S$275m 3) Offer of S$0.45 per share for Tiger Airways Holdings reaches 93.77% acceptance level as of 5 Feb; offer is extended until 19 Feb ) SIA intends to delist Tiger Airways and whoever remains as shareholders of Tiger Airways after the close of the offer will be shareholders in a private company 5) Tiger Airways shareholders who accept the offer will be granted an option to subscribe for SIA shares at S$ per share Page 6

7 Shanghai Composite Index Hang Seng Index Taiwan Index 5,500 Shanghai Comp Index 4,900 4,300 3,700 3,100 2,500 1,900 30,000 Hang Seng Index 28,000 26,000 24,000 22,000 20,000 18,000 16,000 10,400 Taiwan Index 10,000 9,600 9,200 8,800 8,400 8,000 7,600 7, mth: -12.5% YTD: -21.9% 12 mth: -23.7% YTD: -15.4% 12 mth: -14.8% YTD: -3.3% 1 mth: -8.6% 1 Wk: -0.6% 1 mth: -5.9% 1 Wk: -3.3% 1 mth: 3.8% 1 Wk: 0.0% Nikkei Index Dow Jones Industrials NASDAQ Index 22,000 Nikkei 225 Index 21,000 20,000 19,000 18,000 17,000 16,000 15,000 18,500 Dow Jones 18,000 17,500 17,000 16,500 16,000 15,500 15,000 5,400 Nasdaq 5,200 5,000 4,800 4,600 4,400 4, mth: -11.0% YTD: -17.4% 12 mth: -12.3% YTD: -10.1% 12 mth: -11.1% YTD: -14.8% 1 mth: -8.7% 1 Wk: -7.8% 1 mth: -5.2% 1 Wk: -4.6% 1 mth: -8.9% 1 Wk: -5.4% USD/SGD USD/JPY Euro/USD 1.45 usd/sgd usd/jpy Euro/USD mth: 2.1% YTD: -2.0% 12 mth: -6.7% YTD: -6.6% 12 mth: 0.3% YTD: 4.4% 1 mth: -3.4% 1 Wk: -0.6% 1 mth: -4.4% 1 Wk: -3.7% 1 mth: 4.8% 1 Wk: 1.6% USD/RMB SGD/RMB AUD/SGD 6.70 usd/rmb sgd/rmb A$/SGD mth: 5.3% YTD: 1.2% 12 mth: 2.6% YTD: 2.4% 12 mth: -6.5% YTD: -4.5% 1 mth: 0.0% 1 Wk: 0.1% 1 mth: 2.8% 1 Wk: 0.2% 1 mth: -1.8% 1 Wk: -2.9% Source: Datastream, DBS Bank Page 7

8 Baltic Dry Index Volatility Index Fed Funds Rate 1,400 Baltic Dry Index 1,200 1, Volatility Index Fed Funds Rate mth: -47.6% YTD: -39.3% 1 mth: -27.9% 1 Wk: -2.7% Brent Crude Oil Palm Oil Soya Oil US$/barrel 70 Brent Crude Oil US$/ton 700 Palm Oil US$/Ib 36 Soya Oil mth: -43.6% YTD: -13.1% 12 mth: -6.7% YTD: 12.8% 12 mth: -5.0% YTD: 1.7% 1 mth: 2.8% 1 Wk: -11.0% 1 mth: 15.8% 1 Wk: 1.9% 1 mth: 7.6% 1 Wk: 0.7% Aluminium Tin Steel US$/MT 1,900 Aluminium 1,800 1,700 1,600 1,500 US$/MT 19,000 Tin 18,000 17,000 16,000 15,000 14,000 13,000 12,000 RMB/MT 2,600 Steel (rebar) 2,400 2,200 2,000 1,800 1,600 1, mth: -13.3% YTD: -1.8% 12 mth: -11.2% YTD: 7.3% 12 mth: -17.9% YTD: 5.8% 1 mth: -1.4% 1 Wk: 1.3% 1 mth: 16.4% 1 Wk: 4.1% 1 mth: 2.8% 1 Wk: 0.0% Copper Nickel Gold US$/MT 7,000 Copper 6,500 6,000 5,500 5,000 4,500 4,000 US$/MT 16,000 Nickel 14,000 12,000 10,000 8,000 6,000 US$/Ounce 1,350 Gold 1,300 1,250 1,200 1,150 1,100 1,050 1, mth: -20.6% YTD: -5.3% 12 mth: -48.5% YTD: -13.9% 12 mth: 2.0% YTD: 17.5% 1 mth: 2.6% 1 Wk: -5.1% 1 mth: -7.8% 1 Wk: -11.1% 1 mth: 14.6% 1 Wk: 8.2% Source: Datastream, DBS Bank Page 8

9 Straits Times Index Last Price Last Day Vol Avg Vol for the Week Rel STI MTD Rel STI QTD Rel STI YTD Weight Actual Mkt Cap S/No. B'berg Code Stock Name Crncy 12-Feb-16 (000 Shrs) (000 Shrs) (%) (%) (%) (%) (S$m) 1 ST SP SingTel SGD ,145 34, ,078 2 OCBC SP OCBC Bk SGD ,751 7,142 (4) ,691 3 DBS SP DBS SGD ,642 7,442 (6) (13) (13) ,548 4 UOB SP UOB SGD ,011 2,558 (2) (8) (8) ,224 5 HKL SP HKLand US$ USD ,267 6, ,376 6 CAPL SP Capitaland SGD ,420 14,749 (9) (19) (19) ,979 7 KEP SP Keppel Corp SGD ,234 8,247 (5) (34) (34) 3.4 8,766 8 THBEV SP Thai Beverage PCL SGD ,382 6,005 (8) (0) (0) ,949 9 WIL SP Wilmar SGD ,100 8, , SPH SP SPH SGD ,117 4, , CD SP ComfortDelGro SGD ,077 5, , SGX SP SGX SGD ,801 2,645 (3) (9) (9) 2.8 7, SIA SP SIA SGD ,009 2, , CT SP CapitaMall SGD ,673 15, , AREIT SP A-REIT SGD ,693 11, , GLP SP Global Logistics Properties SGD ,873 39,076 (1) (13) (13) 2.3 7, JCNC SP Jardine C&C SGD , STE SP ST Engg SGD ,959 5,170 (7) (1) (1) 2.0 8, GENS SP Genting SP SGD ,266 21, , CIT SP City Developments SGD ,210 1,599 (5) (17) (17) 2.0 6, HPHT SP HPHT (US$) USD ,018 20,102 (9) (27) (27) 1.4 5, UOL SP UOL Group SGD ,829 1,114 (6) (13) (13) 1.2 4, SATS SP SATS SGD ,426 2, , GGR SP GoldenAgr SGD ,806 22, , STH SP StarHub SGD ,424 2, , SCI SP Semb Corp SGD ,727 6,569 1 (6) (6) 1.0 4, YZJSGD SP Yangzijiang SGD ,382 9,334 (1) (5) (5) 0.9 3, NOBL SP Noble Grp SGD ,042 43, , SMM SP SembMar SGD ,780 2,874 (4) , SIE SP SIA Engg SGD ,870 Source: Bloomberg Finance L.P. Page 9

10 At A Glance Currencies SG$/US$ 1.43 (0.0) (0.4) Yen/US$ US$/Euro 0.92 (0.0) (0.3) AUS$/US$ 1.42 (0.0) (1.1) Pound/US$ 1.42 (0.0) (0.2) Other Important Indicators Last Close Important Dates (Singapore) Pts chg 1wk % Chg 1 wk Gold Crude Oil US$ Yield 10-year 1.92 (0.1) (4.0) Event Period Date Retail Sales SA MoM Dec 15-Feb-16 Retail Sales YoY Dec 15-Feb-16 Retail Sales Ex Auto YoY Dec 15-Feb-16 Non-oil Domestic Exports YoY Jan 17-Feb-16 Electronic Exports YoY Jan 17-Feb-16 Non-oil Domestic Exports SA MoM Jan 17-Feb-16 Automobile COE Open Bid Cat A Feb 17-Feb-16 GDP YoY 4Q F 19-Feb-16 GDP SAAR QoQ 4Q F 19-Feb-16 Annual GDP Jul 19-Feb-16 CPI NSA MoM Jan 23-Feb-16 CPI YoY Jan 23-Feb-16 CPI Core YoY Jan 23-Feb-16 Industrial Production SA MoM Jan 26-Feb-16 Industrial Production YoY Jan 26-Feb-16 Money Supply M1 YoY Jan 29-Feb-16 Money Supply M2 YoY Jan 29-Feb-16 Credit Card Billings Jan 29-Feb-16 Bank Loans and Advances YoY Jan 29-Feb-16 Credit Card Bad Debts Jan 29-Feb-16 Announced Dividends and Capital Issues Company Ty pe Particulars Ex Date Paid/ Pay able AVI-TECH ELECTRONICS LIMITED DIVIDEND SGD ONE-TIER TAX 15-Feb Feb-16 LHN LIMITED DIV IDEND SGD ONE-TIER TAX 15-Feb Feb-16 CROESUS RETAIL TRUST DIVIDEND DRP; SGD TAX EXEMPT 17-Feb Mar-16 ROYAL DUTCH SHELL A ADR 10 DIV IDEND USD Feb Mar-16 XMH HOLDINGS LTD. ENTITL. SHARE CONSOL OFFER OF 1 FOR 4 17-Feb-16 LUM CHANG HOLDINGS LIMITED DIVIDEND SGD ONE-TIER TAX 18-Feb Mar-16 SINGAPORE POST LIMITED DIVIDEND SGD ONE-TIER TAX 18-Feb-16 4-Mar-16 ELLIPSIZ LTD DIV IDEND SGD ONE-TIER TAX 19-Feb Mar-16 GOODLAND GROUP LIMITED DIVIDEND SGD ONE-TIER TAX 23-Feb-16 4-Mar-16 COSMOSTEEL HOLDINGS LIMITED DIVIDEND SGD ONE-TIER TAX 25-Feb Mar-16 KARIN TECHNOLOGY HLDGS LIMITED DIVIDEND HKD Mar Mar-16 TAI SIN ELECTRIC LIMITED DIV IDEND SGD ONE-TIER TAX 3-Mar Mar-16 TEE LAND LIMITED DIVIDEND SGD ONE-TIER TAX 3-Mar Mar-16 TEE INTERNATIONAL LIMITED DIVIDEND SGD ONE-TIER TAX 8-Mar Mar-16 N511100W ENTITL. REDEMPTION 100% 23-Mar-16 1-Apr-16 OSIM INTERNATIONAL LTD DIVIDEND SGD 0.02 ONE-TIER TAX 23-Mar-16 4-Apr-16 AV J ENNINGS LIMITED DIV IDEND AUD Mar Apr-16 QIAN HU CORPORATION LIMITED DIV IDEND SGD ONE-TIER TAX 7-Apr Apr-16 CEI CONTRACT MANUFACTURING LTD DIVIDEND SGD ONE-TIER TAX 12-Apr Apr-16 CEI CONTRACT MANUFACTURING LTD DIVIDEND SGD ONE-TIER TAX 12-Apr Apr-16 M1 LIMITED DIV IDEND SGD ONE-TIER TAX 12-Apr Apr-16 SINGAPORE O&G LTD. DIVIDEND SGD ONE-TIER TAX 14-Apr-16 4-May-16 ARA ASSET MANAGEMENT LIMITED DIVIDEND SGD ONE-TIER TAX 21-Apr-16 6-May-16 KEPPEL TELE & TRAN DIV IDEND SGD ONE-TIER TAX 21-Apr May-16 KEPPEL CORPORATION LIMITED DIV IDEND SGD 0.22 ONE-TIER TAX 22-Apr-16 6-May-16 UNITED OV ERSEAS INSURANCE LTD DIV IDEND SGD 0.02 ONE-TIER TAX 27-Apr May-16 UNITED OV ERSEAS INSURANCE LTD DIV IDEND SGD 0.12 ONE-TIER TAX 27-Apr May-16 CHIP ENG SENG CORPORATION LTD DIVIDEND SGD 0.04 ONE-TIER TAX 3-May May-16 HWA HONG CORPORATION LIMITED DIVIDEND SGD 0.01 ONE-TIER TAX 3-May May-16 V ICOM LTD DIV IDEND SGD ONE-TIER TAX 3-May May-16 V ICOM LTD DIV IDEND SGD ONE-TIER TAX 3-May May-16 PERENNIAL REAL ESTATE HLDGSLTD DIVIDEND SGD ONE-TIER TAX 4-May May-16 SBS TRANSIT LTD DIVIDEND SGD ONE-TIER TAX 4-May May-16 FIRST SPONSOR GROUP LIMITED DIV IDEND SGD 0.01 ONE-TIER TAX 5-May May-16 MULTI-CHEM LIMITED DIV IDEND SGD ONE-TIER TAX 16-May May-16 NY01100F ENTITL. REDEMPTION 100% 24-Aug-16 1-Sep-16 Upcoming IPOs NIL Recent IPO Trading Company Name IPO Share Price Last Close ICB Sector Name IPO Date No. of Share IPO Mkt Cap TLV Holdings Ltd General Retailers 17/09/ Jumbo Group Ltd Travel & Leisure 09/11/ Trendlines Group Ltd/The Financial Services 26/11/ Axcelasia Inc Support Services 27/11/ Eindec Corp Ltd Household Goods & Home Construction 15/01/ GS Holdings Ltd Support Services 18/01/ Secura Group Ltd Consumer Services 28/01/ Eindec Corp Ltd Household Goods & Home Construction 15/01/ Surce: Bloomberg Finance L.P. Page 10

11 February 2016 Mon Tues Wed Thu Fri SIA Engineering 3Q 16 Hutchison Port Hldgs 4Q 15 Fraser and Neave 1Q 16 ARA Asset Mgmt 4Q 15 UOI 4Q 15 Frasers Centrepoint Ltd 1Q 16 ASL Marine 2Q 16 Kulicke & Soffa 1Q 16 Capitaland Retail China Trust 4Q 15 Religare Health Trust 3Q 16 Global Logistic Properties 3Q 16 Hwa Hong 4Q 15 Perennial Real Estate 2Q 16 Singapore Airlines 3Q 16 Singapost 3Q 16 Wing Tai 2Q 16 Electronics Sector Index Nikkei Singapore PMI Purchasing Managers Index Automobile COE Open Bid Cat A Foreign Reserves Accordia Golf Trust 3Q 16 Boustead S 3Q 16 Bukit Sembawang 3Q 16 ComfortDelgro 4Q 15 Courts Asia 3Q 16 FJ Benjamin 2Q 16 GL Ltd 2Q 16 Hiap Seng 3Q 16 Memstar Technology 2Q 16 Nam Lee Pressed 1Q 16 Saizen REIOT 2Q 16 SATS 4Q 15 SBS Transit 4Q 15 SingTel 3Q 16 Tat Hong 3Q 16 TTL International 3Q Cosco Corp 4Q 15 Great Eastern 4Q 15 Axis Offshore 4Q 15 Genting Singapore 4Q 15 Aviation PLC 1H 16 Sembcorp Marine 4Q 15 Starhub 4Q 15 Capitaland 4Q 15 ifast Corporation 4Q 15 Rickmers Maritime 4Q 15 CWT 4Q 15 IFS Capital 4Q 15 UOB 4Q 15 IREIT Global 4Q 15 Wilmar International 4Q 15 OCBC 4Q 15 Fragrance Group 4Q 15 Sembcorp Industries 4Q 15 Automobile COE Open Bid Cat A Retail Sales SA MoM Electronic Exports YoY Annual GDP Retail Sales YoY Non-oil Domestic Exports SA MoM GDP SAAR QoQ Retail Sales Ex Auto YoY Non-oil Domestic Exports YoY GDP YoY DBS Group 4Q 15 Asian Pay TV 4Q 15 Ho Bee 4Q 15 China Aviation Oil 4Q 15 Aztech 4Q 15 Roxy-Pacific 4Q 15 Hi-P 4Q 15 Far East Hospitality Trust 4Q 15 HTL International 4Q 15 BW LPG 4Q 15 XP Power 4Q 15 NOL 4Q 15 CSE Global 4Q 15 KrisEnergy 4Q 15 China Merchant 4Q 15 Raffles Medical 4Q 15 Super Group 4Q 15 ST Engrg 4Q 15 Hotel Royal 4Q 15 AP Oil International 4Q 15 China Merchant Holdigns 4Q 15 Indofood Agri 4Q 15 Hengxon 4Q 15 Mewah 4Q 15 Otto Marine 4Q 15 UOL 4Q 15 CPI NSA MoM CPI YoY Industrial Production SA MoM CPI Core YoY Industrial Production YoY 29 Q&M Dental 4Q 15 Olam 4Q 15 Hiap Hoe 4Q 15 Bank Loans and Advances YoY Credit Card Bad Debts Credit Card Billings Money Supply M1 YoY Money Supply M2 YoY Source: Bloomberg Finance L.P. Page 11

12 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 Traders Spectrum s product is oriented towards readers with either 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. In keeping with the short-term orientation of the product, a stock highlighted may or may not be covered or commented on 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 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 )) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document 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 judgment 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. 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 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 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. 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. DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-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. Page 12

13 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 this report. As of 15 Feb 2016, the analyst(s) and his/her spouse and/or relatives who are financially dependent on the analyst(s), do not hold interests in the securities recommended 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 have proprietary positions in Ascendas REIT, CapitaLand, Croesus Retail Trust, DBS Bank Ltd., Frasers Centrepoint Trust, Genting Singapore, Mapletree Commercial Trust, OCBC, Sembcorp Industries, Sembcorp Marine, Sheng Siong Group, SIA Engineering, Singapore Airlines, SingTel, ST Engineering, UOB, Venture Corporation, Wilmar International recommended in this report as of 31 Jan DBS Bank Ltd does not market make in equity securities of the issuer(s) or company(ies) mentioned in this Research Report. 3. DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates beneficially own a total of 1% of any class of common equity securities of Croesus Retail Trust as of 31 Jan DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates beneficially own a total of 5% of any class of common equity securities of Croesus Retail Trust as of 31 Jan Compensation for investment banking services: DBS Bank Ltd., DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12 months for investment banking services from ARA Asset Management, Ascendas REIT, Croesus Retail Trust, Perennial Real Estate Holdings, Singapore Airlines as of 31 Jan DBS Bank Ltd., DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of securities for ARA Asset Management, Ascendas REIT, Croesus Retail Trust, Tiger Airways Holdings in the past 12 months, as of 31 Jan 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. 6. Directorship/trustee interests Peter Seah Lim Huat, Chairman of DBS Group Holdings, is a Deputy Chairman of Capitaland as of 28 Feb Euleen Goh Yiu Kiang, a member of DBS Group Holdings Board of Directors, is a Director of Capitaland as of 28 Feb 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 or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary 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 Act 2001 ( CA ) in respect of financial services provided to the recipients. Both DBS and DBSVS are regulated by the Monetary Authority 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 Indonesia Malaysia This report is being distributed in Hong Kong by DBS Vickers (Hong Kong) Limited which is licensed and regulated by the Hong Kong Securities and Futures Commission. This report is being distributed in Indonesia by PT DBS Vickers Securities Indonesia. This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from ADBSR are to contact the undersigned at in respect of any matters arising from or in connection with this report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies. Wong Ming Tek, Executive Director, ADBSR Page 13

14 Singapore Thailand United Kingdom Dubai United States Other jurisdictions This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No E) or DBSVS (Company Regn No G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at for matters arising from, or in connection with the report. This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Research reports distributed are only intended for institutional clients only and no other person may act upon it. This report is being distributed in the UK by DBS Vickers Securities (UK) Ltd, who is an authorised person in the meaning of the Financial Services and Markets Act and is regulated by The Financial Conduct Authority. Research distributed in the UK is intended only for institutional clients. 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 , 3 rd Floor, 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. This research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon it. This report was prepared by DBS Bank Limited. DBSVUSA did not participate in its preparation. The research analyst(s) named on this report are not registered as research analysts with FINRA and are not associated persons of DBSVUSA. The research analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst compensation, communications with a subject company, public appearances and trading securities held by a research analyst. This report is being distributed in the United States by DBSVUSA, which accepts responsibility for its contents. This report may only be distributed to Major U.S. Institutional Investors (as defined in SEC Rule 15a-6) and to such other institutional investors and qualified persons as DBSVUSA may authorize. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to herein should contact DBSVUSA directly and not its affiliate. 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 Tel , Company Regn. No E Page 14