You are on page 1of 9

S I N G A P O R E

RW e e t ea ki ll y M Sa ur pk pe ot r Mt o an ni dt o r
R e s i s t a n c e
W a t c h

Monday, 08 December 2014

MONTHLY REVIEW AND OUTLOOK

TOP BUY

REVIEW: The FSSTI enjoyed a 2.3% mom rise in November to 3,350.5. The strong
performance was underpinned by banks, which rose 4-7% mom after registering solid
3Q14 results. The most notable development in November was OPECs decision to not
cut supply despite the 39% fall in Brent crude oil price from its ytd high. Unsurprisingly,
this led to a sharp sell-off in oil-related sectors, such as shipyard (-5% mom) and oil
services (-13% mom).
STRATEGY: We have just issued our 1H15 strategy, with a 2015 year-end target of
3,600. Given the limited upside, we think stock-picking remains key to outperforming.
Corporate earnings are expected to grow 9% yoy in 2015, underpinned by banks, telcos
and plantations. Nevertheless, we think investors will remain cautious in view of
disappointing 2014 earnings. In addition, external challenges such as weaker growth in
China and the EU as well as an impending rate hike next year could dampen sentiment.
FSSTIs FY15F PE of 14.1x is at a 12% discount to its long-term mean of 16.1x.
Investment themes to consider include: a) winners and losers of rising interests rates, b)
solid oversold stocks, c) AEC/ASEAN Open Skies beneficiaries, and d) regulatory
changes. Our key picks in the big-cap space include CapitaLand, CCT, ComfortDelGro,
DBS, Keppel Land, OCBC, SingTel, First Resources and Sembcorp Industries. In the
mid-cap space, we like Pacific Radiance, Riverstone, Silverlake and Raffles Medical. Our
SELLs include SIA Engineering and IHH.

Sector
FSSTI
Finance

Nov/Oct
(% chg)
2.3
5.8

Recommendation

Top Buys

Overweight

DBS, OCBC

Telecoms

2.9

Overweight

SingTel,M1

Property

2.5

Overweight

REITs

2.1

Market Weight

Keppel Land,
CapitaLand, Wing Tai
CCT, Suntec REIT, CD
REIT

Others
Supply Chain
LandTransport
Media
Healthcare
Technology
Shipping
Aviation
Plantation

2.1
2.1
1.6
0.2
0.2
(0.9)
(1.8)
(3.2)
(3.3)

Market Weight
Overweight
Market Weight
Market Weight
Overweight
Overweight
Under Weight
Market Weight

Shipyard
OilServices

(5.1)
(12.5)

Market Weight
Overweight

ComfortDelGro
Raffles Medical
Venture
NOL
Top Sell: SIA Engrg
First Resources,
Bumitama
SCI
Triyards, Pacific
Radiance, Ezion

Company
Pacific Radiance
Triyards
Ezion
Wing Tai
FirstRes

Target
Price
(S$)
1.57

Last
Price
(S$)
0.855

Return
(%)
83.6

1.13
2
2.4975
2.8

0.65
1.33
1.72
1.94

73.8
50.9
45.2
44.3

Target
Price
(S$)
3.54

Last
Price
(S$)
4.11

Return
(%)
(13.9)

0.195
1.6
0.56
0.98

0.31
1.905
0.605
0.965

(37.2)
(16.0)
(7.4)
1.6

Source: Bloomberg, UOB Kay Hian

TOP SELL
Company
SIA Engg
Tigerair
IHH
COSCO Corp
Sabana REIT

Source: Bloomberg, UOB Kay Hian

Analyst's Views

All three Singapore banks reported good results with double-digit growth in net interest
income and fee income, as well as strong contribution from net trading income. DBSs core
earnings crossed the S$1b mark for the second time this year while OCBC recorded maiden
contribution from OCBC Wing Hang.
We expect increasing data usage and tiered data plans to sustain growth in Singapores
mobile revenue.
We expect property prices to undergo a healthy 10-15% correction from the peak and prefer
deep value and diversified developers.

We like stocks that provide relative earnings resilience as well as earnings growth.

Source: Bloomberg, UOB Kay Hian

Singapore Research Team


+65 6535 6868
research@uobkayhian.com

w w w . u t r a d e . c o m . s g

S I N G A P O R E

RW e e t ea ki ll y M Sa ur pk pe ot r Mt o an ni dt o r
R e s i s t a n c e
W a t c h

Monday, 08 December 2014

OUR TOP YIELD STOCK PICKS


Company
HPH Trust US$
CACHE
Frasers HTrust
MapletreeInd
AscottREIT
Venture Corp

Rec
BUY
BUY
BUY
BUY
BUY
BUY

Target
Price
(S$)
0.8
1.35
1
1.66
1.4
8.25

Price
30 Nov 14
(S$)
0.685
1.175
0.88
1.505
1.275
7.66

Upside
(%)
16.8
14.9
13.6
10.3
9.8
7.7

Monthly
Performance
% Chg
1.5
0.4
(0.6)
2.0
2.8
(0.9)

2013
(x)
28.8
15.6
20.5
15.3
26.3
16.1

PE

Monthly
Performance
% Chg
(12.3)
(3.9)
(6.7)
(7.3)
(3.3)
(3.8)

2013
(x)
7.8
2.5
10.3
49.4
n.a.
9.7

Monthly
Performance
% Chg
(19.7)
(2.3)
(4.8)
10.0
(1.0)
(0.5)

2013
(x)
6.9
4.5
36.3
45.5
15.5
13.2

2014F
(x)
26.8
15.3
19.8
15.4
20.6
15.3

Yield
2014F
(%)
7.8
7.3
7.0
6.7
6.6
6.5

2014F
(x)
7.7
5.3
14.3
6.7
43.5
6.6

Yield
2014F
(%)
0.0
3.5
2.1
2.8
2.0
4.0

2014F
(x)
6.2
5.7
30.3
77.5
14.7
15.0

Yield
2014F
(%)
2.4
1.5
3.5
0.8
3.1
2.7

OUR TOP LARGE MARKET CAPITALISATION STOCK PICKS


Company

Rec

Ezion
Wing Tai
FirstRes
GuocoLand
OUE
Nam Cheong

BUY
BUY
BUY
BUY
BUY
BUY

Target
Price
(S$)
2
2.4975
2.8
2.48
2.8
0.5

Price
30 Nov 14
(S$)
1.33
1.72
1.94
1.765
2.04
0.38

Upside
(%)
50.9
45.2
44.3
40.5
37.3
31.6

PE

OUR TOP MID-SMALL MARKET CAPITALISATION STOCK PICKS


Company

Rec

Pacific Radiance
Triyards
Silverlake Axis
Hi-P
Riverstone
Boustead Sp

BUY
BUY
BUY
BUY
BUY
BUY

Target
Price
(S$)
1.57
1.13
1.7
0.85
1.09
2.06

Price
30 Nov 14
(S$)
0.855
0.65
1.295
0.715
0.955
1.83

Upside
(%)
83.6
73.8
31.3
18.9
14.1
12.6

PE

Source: Bloomberg, UOB Kay Hian

* To learn more about specific recommendations, talk to your trading representative today.

w w w . u t r a d e . c o m . s g

S I N G A P O R E

RW e e t ea ki ll y M Sa ur pk pe ot r Mt o an ni dt o r
R e s i s t a n c e
W a t c h

Monday, 08 December 2014

OUR INSTITUTIONAL RESEARCH COVERAGE


Target
Price
(S$)

Price
30 Nov 14
(S$)

Upside
(%)

Monthly
Performance
% Chg

HOLD
SELL
HOLD
HOLD
SELL

10.5
3.54
2.94
3.63
0.195

10.78
4.11
2.93
3.37
0.31

(2.6)
(13.9)
0.3
7.7
(37.2)

FINANCE
ARA
DBS

BUY
BUY

1.94
22.68

1.73
19.83

OCBC

BUY

12.1

S'pore Exchange @
UOB@
Sector

NR
NR

SELL
BUY

Company
AVIATION
SIA
SIA Engg
SATS
ST Engrg
Tigerair
Sector

HEALTHCARE
IHH
Raffles Medical

Rec

2013
(x)

2014F
(x)

Yield
2014F
(%)

8.9
(13.7)
(5.5)
(10.1)
(1.6)

35.2
17.2
18.2
18.0
n.a.
27.2

29.6
23.7
19.0
18.6
n.a.
29.8

1.2
3.6
4.4
4.2
0.0
2.9

12.1
14.4

1.2
7.3

19.7
13.2

17.5
12.3

2.9
2.9

10.48

15.5

6.0

13.8

11.5

3.4

n.a.
n.a.

7.32
24

n.a.
n.a.

4.6
4.3

23.3
13.0
14.1

24.4
12.4
12.6

3.8
3.1
3.2

1.6
4.3

1.905
3.87

(16.0)
11.1

0.0
1.8

61.7
25.1

53.6
30.9

0.4
1.4

52.9

49.3

0.5

Sector
LAND
TRANSPORT
ComfortDelGro

PE

BUY

3.02

2.6

16.2

(1.5)

20.9

19.6

2.8

HOLD

1.56

1.63

(4.3)

9.4

40.1
24.7

26.4
21.4

3.0
2.8

HOLD

4.3

4.29

0.2

0.2

16.1
16.1

17.2
17.2

4.9
4.9

OIL SERVICES
Ezion

BUY

1.33

50.9

(12.3)

7.8

7.7

0.0

Ezra
Marco Polo @
Mencast @
Nam Cheong
Pacific Radiance

HOLD
NR
NR
BUY
BUY

0.94
n.a.
n.a.
0.5
1.57

0.665
0.3
0.43
0.38
0.855

41.4
n.a.
n.a.
31.6
83.6

(18.4)
(9.1)
(9.1)
(3.8)
(19.7)

9.7
4.6
7.9
9.7
6.9

11.4
10.1
7.9
6.6
6.2

0.0
0.0
3.7
4.0
2.4

Swiber
Triyards

SELL
BUY

0.52
1.13

0.315
0.65

65.1
73.8

(20.3)
(2.3)

2.5
4.5

n.a.
5.7

0.0
1.5

8.4

9.0

1.2

SMRT
Sector
MEDIA
SPH
Sector

Sector

w w w . u t r a d e . c o m . s g

Analyst's Views

DBS fired on all cylinders with broad-based


growth in net interest income, fee income and net
trading income. There was some increase in staff
costs, which was overshadowed by the huge
16.9% yoy increase in total income.
OCBCs 3Q14 results were slightly below
expectations. Contribution from life insurance and
net trading income was lower on a sequential
basis.

RMGs hospital expansion in Singapore will drive


its long-term growth after 2016 and position it well
to meet rising demand for quality healthcare and
medical tourism.

Net profit of S$80.8m (+5.3% yoy) was slightly


above expectations in 3Q14. CDs bus and taxi
segments reported consistently strong
performances as rail revenue made gradual
traction.

9M14 profit accounts for 65% of our full-year


forecast of S$215m. Three new service rigs
joined the fleet but only two units contributed to
3Q14 revenue and earnings

3Q14 core earnings came in below expectations


due to unexpected losses in the subsea segment.
Net profit was in line boosted by higher vessel
sales gain.
The recent earnings-accretive acquisition of
Strategic Marines yards will boost its yard
capacity and expand its product segment and
client base.

S I N G A P O R E

RW e e t ea ki ll y M Sa ur pk pe ot r Mt o an ni dt o r
R e s i s t a n c e
W a t c h

Monday, 08 December 2014

OUR INSTITUTIONAL RESEARCH COVERAGE


Company

Rec

Target
Price
(S$)

Price
30 Nov 14
(S$)

Upside
(%)

Monthly
Performance
% Chg

2013
(x)

PE
2014F
(x)

Yield
2014F
(%)

PLANTATION
Bumitama

BUY

1.4

1.07

30.8

(1.8)

18.4

14.3

1.4

FirstRes

BUY

2.8

1.94

44.3

(6.7)

10.3

14.3

2.1

GoldenAgri
KencanaAgri
Wilmar
Sector

HOLD
HOLD
HOLD

0.5
0.23
3.55

0.46
0.22
3.21

8.7
4.5
10.6

(11.5)
(2.2)
0.3

15.2
n.a.
12.4
13.1

15.6
11.1
14.5
14.6

0.1
1.2
2.6
2.0

PROPERTY
CapitaLand

BUY

4.08

3.32

22.9

4.7

16.6

20.5

2.4

City Devt
GuocoLand
Ho Bee Land
Keppel Land

HOLD
BUY
HOLD
BUY

10.84
2.48
2.68
4.296

10.06
1.765
1.985
3.37

7.8
40.5
35.0
27.5

6.5
(7.3)
(0.3)
0.9

13.7
49.4
2.3
5.9

16.0
6.7
32.9
12.6

1.6
2.8
1.5
3.6

OUE
Wing Tai

BUY
BUY

2.8
2.4975

2.04
1.72

37.3
45.2

(3.3)
(3.9)

n.a.
2.5

43.5
5.3

2.0
3.5

10.5

15.2

2.4

n.a.

n.a.

0.0

n.a.

n.a.

0.0

Sector
SHIPPING
NOL

BUY

1.01

0.82

Sector

w w w . u t r a d e . c o m . s g

23.2

(1.8)

Analyst's Views

FFB production might miss expectations in 2014


as dry weather might affect the fruit ripeness in
4Q14, but drawdown of inventory built-up would
help to support the sales volume in 4Q14.
Operating profit was in line with expectations but
net profit was lower due to a higher effective tax
rate. The strong qoq net profit growth in 3Q14
was mainly supported by the 45.8% qoq growth in
FFB production, offsetting weaker CPO ASP.

Management remains positive on residential


demand in the long term although it expects
private residential demand and pricing to further
moderate in the near term.

Management sees signs of improved sentiments


in Singapores residential segment with good
sales at recent new launches, while Chinas
property measures relaxation are supportive of
the property sector.
Management expects the operating environment
in the Singapore property market to remain
difficult in the current financial year, believing that
the 2Q14 dip in URA index represents a start of a
broader downtrend in the sector, especially with
interest rates expected to rise, together with
oversupply of residential properties.

NOLs share price has dropped 22% since endJune to a five-year low, driven by the expectation
of a third year of losses, weak freight rates, port
congestion on the US West Coast and the
potential sale of its profitable logistics business.

S I N G A P O R E

RW e e t ea ki ll y M Sa ur pk pe ot r Mt o an ni dt o r
R e s i s t a n c e
W a t c h

Monday, 08 December 2014

OUR INSTITUTIONAL RESEARCH COVERAGE


Company
SHIPYARD
COSCO Corp
Keppel Corp
Sembcorp Ind

Sembcorp Marine
Yangzijiang
Sector
SUPPLY CHAIN
Noble Group
Olam
Sector
TECHNOLOGY
Venture Corp

Target
Price
(S$)

Price
30 Nov 14
(S$)

Upside
(%)

Monthly
Performance
% Chg

2013
(x)

2014F
(x)

SELL
HOLD
BUY

0.56
9.5
5.2

0.605
9
4.57

(7.4)
5.6
13.8

1.7
(4.7)
(6.2)

44.2
8.8
10.0

24.6
10.0
10.6

1.7
5.0
3.9

HOLD
BUY

3
1.39

3.13
1.225

(4.2)
13.5

(14.0)
8.4

11.8
7.5
9.6

12.2
7.2
10.2

4.1
4.2
4.4

HOLD
HOLD

1.25
2.35

1.225
2.16

2.0
8.8

2.5
1.4

28.8
15.0
20.5

12.9
8.8
11.3

2.2
3.5
2.7

BUY

8.25

7.66

7.7

(0.9)

16.1

15.3

6.5

16.1

15.4

6.5

Rec

Sector

PE

Yield
2014F
(%)

TELECOMS
M1

BUY

3.64

9.9

4.3

20.9

19.9

3.9

S Telecoms

BUY

4.2

3.9

7.7

3.2

17.0

16.7

4.5

StarHub
Sector

HOLD

4.33

4.14

4.6

0.2

19.2
17.4

22.7
17.2

4.8
4.5

HOLD
BUY
BUY
HOLD
BUY

0.37
1.32
0.8
2.02
1.23

0.35
1.14
0.685
1.93
1.22

5.7
15.8
16.8
4.7
0.8

1.4
3.6
1.5
(2.0)
3.4

5.2
23.7
28.8
28.6
13.6
17.2

19.0
22.7
26.8
26.7
24.1
23.7

2.2
0.9
7.8
3.2
2.9
3.2

OTHERS
Genting HK US$
Genting SP
HPH Trust US$
SingPost
SuperGroup
Sector

w w w . u t r a d e . c o m . s g

Analyst's Views

SCI is powering ahead with large power projects


especially in India which will come on-stream
in 2014-16. We trim our 2014-16 earnings
forecasts by 3-5% for the marine segment.

Ventures performance in 3Q14 was flat qoq, as


anticipated. We expect a gradual pick-up in 4Q14.
Outlook is positive for 2015 as customers affected
by M&A have completed their merger integration.

Customers waiting for the larger form factor


offered by the iPhone 6 and iPhone 6 Plus have
resulted in negative net addition for post-paid
mobile subscribers in 3Q14.
STs earnings contribution from regional mobile
associates increased 26.3% yoy to S$655m,
driven by a spectacular performance from Bharti.
Growth from the consumer group has slowed.

S I N G A P O R E

RW e e t ea ki ll y M Sa ur pk pe ot r Mt o an ni dt o r
R e s i s t a n c e
W a t c h

Monday, 08 December 2014

OUR INSTITUTIONAL RESEARCH COVERAGE


Company

Rec

Target
Price
(S$)

Price
30 Nov 14
(S$)

Upside
(%)

Monthly
Performance
% Chg

2013
(x)

PE
2014F
(x)

Yield
2014F
(%)

REITS
Ascendasreit
AscottREIT
CACHE
CapitaComm

BUY
BUY
BUY
BUY

2.73
1.4
1.35
1.88

2.34
1.275
1.175
1.685

16.7
9.8
14.9
11.6

4.9
2.8
0.4
0.9

18.2
26.3
15.6
22.2

16.3
20.6
15.3
21.7

6.3
6.6
7.3
5.0

CapitaMall
CDL Htrust

HOLD
BUY

2.14
2.01

1.98
1.735

8.1
15.9

0.5
0.6

19.6
16.3

18.5
16.8

5.4
6.2

FrasersCT
Frasers HTrust
Kep REIT
MapletreeInd
MapletreeLog
PLife REIT
Sabana REIT
Starhill Gbl
Suntec REIT
Sector

BUY
BUY
BUY
BUY
HOLD
HOLD
SELL
BUY
BUY

2.23
1
1.42
1.66
1.32
2.52
0.98
0.93
2.05

1.895
0.88
1.24
1.505
1.18
2.35
0.965
0.81
1.97

17.7
13.6
14.5
10.3
11.9
7.2
1.6
14.8
4.1

(2.6)
(0.6)
1.6
2.0
0.4
(1.7)
(2.5)
(0.6)
10.4

18.2
20.5
23.2
15.3
15.6
22.6
12.8
15.6
44.9
20.9

18.0
19.8
24.6
15.4
15.9
20.4
15.1
16.5
30.6
19.3

5.9
7.0
6.3
6.7
6.5
5.0
7.9
6.1
4.8
5.9

Analyst's Views

Key growth catalysts would be the upcoming


CapitaGreen development, which can be
acquired without additional equity fund-raising.
Watch out for further upside as two of CCTs
biggest tenants will see rents rise over the next
six months while the overhang from 2015 CBs
has been largely removed.
CDREIT announced its maiden purchase of two
business hotels in Japan for S$66m. The
acquisition is yield-accretive and will help
CDREIT gain exposure to the favourable
Japanese hospitality market.

If year end is before June, earnings are shown in the previous period
@ Consensus forecast

w w w . u t r a d e . c o m . s g

S I N G A P O R E

RW e e t ea ki ll y M Sa ur pk pe ot r Mt o an ni dt o r
R e s i s t a n c e
W a t c h

Monday, 08 December 2014

OUR RETAIL RESEARCH COVERAGE


Price
30 Nov 14
(S$)
0.595
1.83

Upside

BUY
BUY

Target
Price
(S$)
0.72
2.06

(%)
20.2
12.6

Monthly
Performance
% Chg
(1.7)
(0.5)

2013
(x)
11.1
13.2

2014F
(x)
12.6
15.0

Yield
2014F
(%)
4.4
2.7

BUY
BUY

0.91
1.03

0.56
0.7

61.6
47.1

3.7
(5.4)

24.7
5.5

15.6
6.7

2.5
3.7

HOLD
HOLD
BUY
BUY
BUY
BUY
SELL
BUY

0.87
0.62
0.88
1.03
0.275
1.15
0.74
0.85

0.89
0.455
0.655
0.935
0.215
0.65
1.05
0.715

(2.2)
36.3
34.4
10.2
27.9
76.9
(29.5)
18.9

(11.9)
1.1
(3.0)
1.6
2.4
(5.1)
21.4
10.0

21.2
10.1
99.9
15.9
12.2
20.3
25.3
45.5

16.5
7.6
10.3
15.6
13.1
24.0
21.2
77.5

0.0
4.0
3.9
0.0
6.0
1.0
0.0
0.8

Isoteam Ltd
Kori Holdings Ltd
KrisEnergy
Ksh Holdings Ltd
Lantrovision

BUY
HOLD
BUY
BUY
BUY

0.64
0.355
1.18
0.71
0.655

0.51
0.45
0.785
0.52
0.59

25.5
(21.1)
50.3
36.5
11.0

3.0
0.0
(4.8)
(1.9)
2.6

20.2
6.4
n.a.
4.6
15.9

9.9
9.0
n.a.
3.9
11.5

2.0
4.4
0.0
0.0
5.1

Osim International
Overseas Education
Pan-United Corp Ltd
QT Vascular
Rex International
RH PetroGas
Riverstone

BUY
HOLD
HOLD
BUY
BUY
BUY
BUY

3.25
0.91
1.04
0.6
1.27
1
1.09

2.16
0.865
0.835
0.295
0.405
0.475
0.955

50.5
5.2
24.6
103.4
213.6
110.5
14.1

16.1
(4.9)
(9.2)
(13.2)
(16.5)
(19.5)
(1.0)

16.7
15.2
10.4
n.a.
n.a.
21.1
15.5

14.9
16.9
10.3
n.a.
n.a.
43.6
14.7

3.4
3.0
4.8
0.0
0.0
0.0
3.1

Rotary Engineering
Silverlake Axis Ltd

SELL
BUY

0.43
1.7

0.55
1.295

(21.8)
31.3

(9.1)
(4.8)

15.1
36.3

5.9
30.3

6.8
3.5

SingHaiyi
Sino Grandness
Food Industry
Smartflex
Tai Sin
Tiong Woon
Ying Li International
Yongnam Holdings

BUY
BUY

0.24
0.95

0.146
0.465

64.4
104.3

(3.3)
8.1

41.3
3.1

15.6
2.9

0.0
3.4

BUY
BUY
BUY
BUY
HOLD

0.21
0.51
0.455
0.4
0.25

0.156
0.365
0.27
0.26
0.194

34.6
39.7
68.5
53.8
28.9

(1.3)
(3.9)
(8.5)
(1.9)
(15.7)

n.a.
8.4
7.1
20.3
7.5

11.9
7.1
6.7
18.4
6.5

5.6
6.2
1.5
0.0
0.0

Company

Rec

Amtek
Boustead Sp

Centurion
China Aviation Oil
Singapore
Cordlife Group Ltd
Courts Asia Ltd
CSE Global
Guocoleisure Ltd
Hafary Holdings Ltd
Halcyon Agri Corp
HanKore
Hi-P

PE

Analyst's Views

We continue to favour Boustead as the company


continues to secure new contracts and grow its
industrial property portfolio. The BDP will boost
the capabilities of BP in financing a significantly
larger pipeline of projects, particularly for larger
scale projects with higher capital requirements.

With continued positive contributions from new


projects and a positive outlook in the global
smartphone market, Hi-P is expecting a strong
finish to the year.

According to a new report by power management


company Eaton, data centre budgets in
Singapore and Asia Pacific will increase 5-10% in
the next 12 months.

Riverstone Holdings reported 9M14 net profit


growth of 15.8% yoy due to stronger sales
volume. The groups expansion plan is on track
as it continues to add 1b pieces in new capacity
every year, over five phases.
SILV reported net profit of RM59.7m with
increasing earnings visibility from near-term
orderbook of RM280m. We see further upside
from major contracts given its recent banking
M&As.

Source: Bloomberg, UOB Kay Hian

w w w . u t r a d e . c o m . s g

S I N G A P O R E

RW e e t ea ki ll y M Sa ur pk pe ot r Mt o an ni dt o r
R e s i s t a n c e
W a t c h

Monday, 08 December 2014

Disclosures/Disclaimers
This report is prepared and/or distributed by UOB Kay Hian Pte Ltd (UOBKH), which is a holder of a capital markets services licence and
an exempt financial adviser in Singapore.
This report is provided for information only and is not an offer or a solicitation to deal in securities or to enter into any legal relations, nor an
advice or a recommendation with respect to such securities.
This report is prepared for general circulation. It does not have regard to the specific investment objectives, financial situation and the
particular needs of any recipient hereof. Advice should be sought from a financial adviser regarding the suitability of the investment
product, taking into account the specific investment objectives, financial situation or particular needs of any person in receipt of the
recommendation, before the person makes a commitment to purchase the investment product.
This report is confidential. This report may not be published, circulated, reproduced or distributed in whole or in part by any recipient of this
report to any other person without the prior written consent of UOBKH. This report is not intended for distribution, publication to or use by
any person in any jurisdiction outside Singapore or any other jurisdiction as UOBKH may determine in its absolute discretion, where the
distribution, publication or use of this report would be contrary to applicable law or would subject UOBKH and its connected persons (as
defined in the Financial Advisers Act, Chapter 110 of Singapore) to any registration, licensing or other requirements within such
jurisdiction.
The information or views in the report (Information) has been obtained or derived from sources believed by UOBKH to be reliable.
However, UOBKH makes no representation as to the accuracy or completeness of such sources or the Information and UOBKH accepts
no liability whatsoever for any loss or damage arising from the use of or reliance on the Information. UOBKH and its connected persons
may have issued other reports expressing views different from the Information and all views expressed in all reports of UOBKH and its
connected persons are subject to change without notice. UOBKH reserves the right to act upon or use the Information at any time,
including before its publication herein.
Except as otherwise indicated below, (1) UOBKH, its connected persons and its officers, employees and representatives may, to the
extent permitted by law, transact with, perform or provide broking, underwriting, corporate finance-related or other services for or solicit
business from, the subject corporation(s) referred to in this report; (2) UOBKH, its connected persons and its officers, employees and
representatives may also, to the extent permitted by law, transact with, perform or provide broking or other services for or solicit business
from, other persons in respect of dealings in the securities referred to in this report or other investments related thereto; (3) the officers,
employees and representatives of UOBKH may also serve on the board of directors or in trustee positions with the subject corporation(s)
referred to in this report. (All of the foregoing is hereafter referred to as the Subject Business); and (4) UOBKH may otherwise have an
interest (including a proprietary interest) in the subject corporation(s) referred to in this report.
As of the date of this report, no analyst responsible for any of the content in this report has any proprietary position or material interest in
the securities of the corporation(s) which are referred to in the content they respectively author or are otherwise responsible for.
Each research analyst of UOBKH who produced this report hereby certifies that (1) the views expressed in this report in any event
accurately reflect his/her personal views about all of the subject corporation(s) and securities in this report; (2) the report was produced
independently by him/her; (3) he/she does not carry out, whether for himself/herself or on behalf of UOBKH or any other person, any of the
Subject Business involving any of the subject corporation(s) or securities referred to in this report; and (4) he/she has not received and will
not receive any compensation that is directly or indirectly related or linked to the recommendations or views expressed in this report or to
any sales, trading, dealing or corporate finance advisory services or transaction in respect of the securities in this report. However, the
compensation received by each such research analyst is based upon various factors, including UOBKHs total revenues, a portion of
which are generated from UOBKHs business of dealing in securities.
IMPORTANT DISCLOSURES FOR INCLUDED RESEARCH ANALYSES OR REPORTS OF FOREIGN RESEARCH HOUSES
Where the report is distributed in Singapore and contains research analyses or reports from a foreign research house, please note:
(i) recipients of the analyses or reports are to contact UOBKH (and not the relevant foreign research house) in Singapore in respect of any
matters arising from, or in connection with, the analysis or report; and
(ii) to the extent that the analyses or reports are delivered to and intended to be received by any person in Singapore who is not an
accredited investor, expert investor or institutional investor, UOBKH accepts legal responsibility for the contents of the analyses or reports
IMPORTANT DISCLOSURES FOR U.S. PERSONS
This research report was prepared by UOBKH, a company authorized, as noted above, to engage in securities activities in Singapore.
UOBKH is not a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of
research reports and the independence of research analysts. This research report is provided for distribution by UOBKH (whether directly
or through its US registered broker dealer affiliate named below) to major U.S. institutional investors in reliance on the exemption from
registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act). All US persons that

w w w . u t r a d e . c o m . s g

S I N G A P O R E

RW e e t ea ki ll y M Sa ur pk pe ot r Mt o an ni dt o r
R e s i s t a n c e
W a t c h

Monday, 08 December 2014

receive this document by way of distribution from or which they regard as being from UOBKH by their acceptance thereof represent and
agree that they are a major institutional investor and understand the risks involved in executing transactions in securities.
Any U.S. recipient of this research report wishing to effect any transaction to buy or sell securities or related financial instruments based on
the information provided in this research report should do so only through UOB Kay Hian (U.S.) Inc (UOBKHUS), a registered brokerdealer in the United States. Under no circumstances should any recipient of this research report effect any transaction to buy or sell
securities or related financial instruments through UOBKH.
UOBKHUS accepts responsibility for the contents of this research report, subject to the terms set out below, to the extent that it is
delivered to and intended to be received by a U.S. person other than a major U.S. institutional investor.
The analyst whose name appears in this research report is not registered or qualified as a research analyst with the Financial Industry
Regulatory Authority (FINRA) and may not be an associated person of UOBKHUS and, therefore, may not be subject to applicable
restrictions under FINRA Rules on communications with a subject company, public appearances and trading securities held by a research
analyst account.
Analyst Certification/Regulation AC
As noted above, each research analyst of UOBKH who produced this report hereby certifies that (1) the views expressed in this report
accurately reflect his/her personal views about all of the subject corporation(s) and securities in this report; (2) the report was produced
independently by him/her; (3) he/she does not carry out, whether for himself/herself or on behalf of UOBKH or any other person, any of the
Subject Business involving any of the subject corporation(s) or securities referred to in this report; and (4) he/she has not received and will
not receive any compensation that is directly or indirectly related or linked to the recommendations or views expressed in this report or to
any sales, trading, dealing or corporate finance advisory services or transaction in respect of the securities in this report. However, the
compensation received by each such research analyst is based upon various factors, including UOBKHs total revenues, a portion of
which are generated from UOBKHs business of dealing in securities.

Copyright 2014, UOB Kay Hian Pte Ltd. All rights reserved.
http://research.uobkayhian.com
MCI (P) 116/03/2014
RCB Regn. No. 198700235E

w w w . u t r a d e . c o m . s g