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Singapore Company Focus

Starburst Holdings
Refer to important disclosures at the end of this report

Bloomberg: STARB SP | Reuters: STAB.SI

DBS Group Research . Equity

30 Jun 2015

BUY

Hit by contract delays

Last Traded Price: S$0.48 (STI : 3,280.18)
Price Target : S$ 0.56 (17% upside) (Prev S$ 0.77)



1H15 expected to be weak due to delay in contract
awards

Reason for Report : Revision in earnings
Potential Catalyst: Contract wins



Expect a strong recovery in FY16 and FY17



Beneficiary of higher defence spending in Southeast
Asia and the Middle East

Analyst
LING Lee Keng +65 6682 3703 leekeng@dbs.com

Price Relative
S$

Relative Index

0.8
0.8

249

0.7

229

0.7

209

0.6

189

0.6

169

0.5

149

0.5
0.4

129

0.4

109

0.3
Jul-14

89
Dec-14

Starburst Holdings (LHS)

Forecasts and Valuation
FY Dec (S$ m)
Revenue
EBITDA
Pre-tax Profit
Net Profit
Net Pft (Pre Ex.)
EPS (S cts)
EPS Pre Ex. (S cts)
EPS Gth (%)
EPS Gth Pre Ex (%)
Diluted EPS (S cts)
Net DPS (S cts)
BV Per Share (S cts)
PE (X)
PE Pre Ex. (X)
P/Cash Flow (X)
EV/EBITDA (X)
Net Div Yield (%)
P/Book Value (X)
Net Debt/Equity (X)
ROAE (%)
Earnings Rev (%):
Other Broker Recs:

May-15

Relative STI INDEX (RHS)

2014A
39.4
16.7
15.8
13.2
13.2
5.3
5.3
51
51
5.3
1.2
20.6
9.1
9.1
13.3
6.3
2.5
2.3
CASH
34.0

2015F
22.0
4.5
2.6
2.2
2.2
0.9
0.9
(84)
(84)
0.9
0.2
21.3
55.4
55.4
98.7
22.8
0.4
2.3
CASH
4.1

2016F
43.8
16.1
14.3
12.0
12.0
4.8
4.8
453
453
4.8
1.0
25.1
10.0
10.0
23.8
7.2
2.0
1.9
CASH
20.7

2017F
53.3
18.9
17.0
14.2
14.2
5.7
5.7
19
19
5.7
1.1
29.7
8.4
8.4
10.1
5.7
2.4
1.6
CASH
20.7

(88)
B: 1

(43)
S: 0

NEW
H: 0

ICB Industry : Industrials
ICB Sector: Aerospace & Defense
Principal Business: Design, fabricate, install and maintain antiricochet ballistic protection systems for firearm shooting ranges and
tactical training mock-ups

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

www.dbsvickers.com
ed: TH / sa: JC

 Maintain BUY, TP cut to S$0.56
1H15 weak due to delay in contract awards. Delay in
the award of contracts has led Starburst reporting a net loss
of S$0.5m for 1Q15. We see another set of weak results in
2Q15, as contract flow in 1H15 has been slow. However, we
expect 2H15 to be better, with the recent signing of LOI for
a S$16.1m contract.
Expect a strong recovery in FY16 and FY17. We have
pushed back the award of contracts originally slated for FY15
to FY16, and those for FY16 to FY17/FY18. Based on
progressive booking method, we expect Starburst to book
revenue of S$22m for FY15F, which is similar to its FY13
level, before the ramp-up in FY14. We see a strong recovery
in FY16 and FY17, with the expected award of a few big
contracts in the range of S$20m to S$60m.
Outlook remains buoyant. Starburst, a niche defence play,
is a beneficiary of higher defence spending in Southeast Asia
and the Middle East. SEA is actively upgrading and
modernising facilities, partly to protect critical infrastructure
whereas in the Middle East, the implementation of
compulsory military services is propelling demand for new
shooting ranges in Middle East.
Maintain BUY, TP cut to S$0.56. Our target price of
S$0.56 is based on 12x FY16 PE, which is pegged to a 40%
discount to peers’ average of 20x forward PE. Key risks
include lumpy project wins and customer concentration as
Starburst’s contracts are mainly from government agencies.
Maintain BUY.
At A Glance
Issued Capital (m shrs)
Mkt. Cap (S$m/US$m)
Major Shareholders
Chin Wah Lim (%)
Tin Foo Yap (%)
Free Float (%)
3m Avg. Daily Val (US$m)

250
120 / 88.9
40.0
40.0
20.0
0.1

Starburst may have to put up capital to fund the working capital of projects. which is pegged to 40% discount to peers’ average of 20x forward PE. Beneficiary of higher defence spending in Southeast Asia & the Middle East  SEA is actively upgrading and modernising facilities. Starburst has built a track record with different govermental agencies.56 is based on 12x FY16 PE. Customer concentration . a substantial proportion of Starburst’s revenues has been derived from contracts entered into indirectly with governmental agencies in Southeast Asia and the Middle East.    Contract wins in 1H15 have been slow. install and maintain anti-ricochet ballistic protection systems for firearm shooting ranges and tactical training mock-ups. Rationale Niche defence play  Starburst is one of the very few integrated specialists who design. which is dependent on its ability to secure new contracts. Since its inception in 1999. manufacture.   Source: DBS Bank Page 2 . install and upkeep anti-ricochet ballistic protection systems for firearm training facilities.   Capital-intensive business  The contract sums for projects are payable by customers progressively.   1H15 weak but 2H15 better. expect stronger recovery in FY16 and FY17  We have pushed back the award of contracts originally slated for FY15 to FY16. partly to protect critical infrastructure whereas in the Middle East. and those for FY16 to FY17/FY18. the implementation of compulsory military services is propelling demand for new shooting ranges in Middle East. fabricate. We see a strong recovery in FY16 and FY17.   Valuation Our target price of S$0. with the expected award of a few big contracts in the range of S$20m to S$60m.Company Focus Starburst Holdings INVESTMENT THESIS Profile Design. Risks Mainly dependent on project-based non-recurring contracts  Starburst’s business is largely made up of non-recurring contracts.contracts mainly from government agencies  Historically. based on the stage of completion of the work carried out for the relevant project.

A significant portion of the IPO proceeds last year was utilised for this purpose.5 16. Malaysia. For the firearm shooting range and tactical training mock-up divisions. We see a strong recovery in FY16 and FY17. However. demand is mainly for new builds as the countries beef up their defence facilities.6m that were announced earlier. Thailand and Vietnam. and to undertake more as well as larger projects simultaneously. plus maintenance and steel façade works contracts. . Issues like Islamic State of Iraq and alSham (ISIS) and the airstrikes by Saudi Arabia against Iranbacked Shiite rebels in turbulent Yemen. to help protect us in this fast evolving environment.14 5 4 4 11.Company Focus Starburst Holdings Delay in award of contracts Delay in the award of contracts has led Starburst to report a net loss of S$0. Total contract Duration value ( S$m) (years) 7.8 1. petrochemical plants and government administration buildings has led to higher defence spending.6 sqm with a gross floor area of approximately 7.5m for 1Q15.5 Double production capacity to undertake bigger contracts Starburst has acquired a piece of land measuring approximately 8.4 sqm in Tuas for S$22. Based on progressive booking method. The two key markets for Starburst – Southeast Asia and the Middle East region – are beefing up their defence spending. projects in 1Q14 were mostly in the fabrication phase. In 1Q15. Saudi Arabia has been a country with the highest defence spending in the region. with the expected award of a few big contracts in the range of S$20m to S$60m. Singapore. Defence spending for Qatar. We see another set of weak results in 2Q15. 2H15 should be better than 1H15. Philippines. This will enable the Group to increase its fabrication efficiency and capacity. which is similar to its FY13 level. Historically.1m contract.6 Feb to Sep by Dec 16 Source: DBS Bank Maintenance and steel work contracts Ma int e na nce 12-Feb-15 Maintenance of security and detention factilities in Southeast Asia Projected win Firearm shooting range in SEA in 2015 S t e e l wo rks 3-Feb-15 Facade steelworks for Marina One project Source: DBS Bank Page 3 Growth in defence spending Defence-related spending has become a necessity in today’s world. One of the reasons for the delay in contract awards in the Middle East could be geopolitical issues. the political turmoil in the region has also led to higher defence spending. we are expecting a few smaller contracts to be awarded in 2H15. are now among the top defense spenders globally.1 18. In the Middle East. with the recent signing of LOI for a S$16.002. vs S$6. We have pushed back the award of contracts originally slated for FY15 to FY16. Including the two contracts totaling S$18. Precautionary protection against attacks on key infrastructure like seaports. Countries like Brunei. and those for FY16 to FY17/FY18. airports.5 3 2 3 * LOI Job scope Outlook 165 Co nt ract s clinched 9-Feb Middle East 10-Jun Middle East * To t al Date Geopolitical issues affected Middle East. before the ramp-up in FY14. Many countries are building up military capabilities. we expect Starburst to book revenue of S$22m for FY15F. defence spending will more likely be for upgrading of existing facilities and not entirely new builds.  Southeast Asia offers opportunities to upgrade and new builds. with more countries imposing compulsory military training for male citizens.805. Laos.4m. In comparison. as contract flow in 1H15 has been slow. with Saudi Arabia to continue with its high defence spending. For Singapore and Malaysia. Indonesia. according to a McKinsey report. UAE and Kuwait will also increase. Cambodia. have affected the Middle East countries. according to Stockholm International Peace Research Institute (SIPRI). We continue to expect strong defence spending in the Middle East.  Strong growth in the Middle East. For Thailand and Brunei. and this is expected to continue.1m profit for 1Q14. we expect 2H15 to be better. Supply. Starburst was involved primarily in the final installation phase of the projects secured earlier. 1. with an eye towards better protection of their key infrastructure. fabrication and installation contract wins Date Job scope Po t ent ial win 2015 2016 2017 2017/2018 Middle East Middle East Middle East Middle East and Southeast and Southeast and Southeast and Southeast Total contract Duration value ( S$m) (years) Asia Asia Asia Asia 15 70 20 60 To t al 2.

5 6. Meggitt Training Systems Inc in the UK and Microcircuit Systems Pte Ltd.0 26.4 10.4 69.1 23.2 13. the bulk of Starburst’s revenues have been derived from contracts entered into with governmental agencies in Southeast Asia and the Middle East. Globally. Furthermore.5 5.3 1.651. competitors include Cubic Range Design Solutions in USA.0 11.332.9 57.6 US$49. pre-requisites such as specialised technical skills and established track record deter new entrants.2 7.4 3. Risk Customer concentration .29 19.4 13.0 2.8 22.8 19.2 15.539.4 (23. 5 15. Mainly dependent on project-based non-recurring contracts Starburst’s business is largely made up of non-recurring contracts.7 20.4 532.4 MEGGITT PLC 12/2014 3.0 S$0.231.2 33.5 12.0) 70. Our target price of S$0. We believe players in this industry will remain niche as growth potential is not particularly attractive for new players in this already mature industry.6 18.2 (24. Delay in the award of contracts will affect its financials.8 26.contracts mainly from government agencies Historically.7 39.4 34.57 19.0 £466.5 SINGAP TECH ENG 12/2014 10.4 1.6 (14.6 2.0 39. 4.7 n.8 17. ST Engineering is the closest competitor as it is also involved in land defence systems and marine capabilities for defence and commercial enterprises.5 1.7) (83.1 CUBIC CORP 09/2014 1. 1 Ave ra ge ( e x S ta rburs t) Source: DBS Bank Page 4 .0 1.553. which is pegged to a 40% discount to peers’ average of 20x forward PE. besides specialising in aerospace and electronics.9 S$3.7 177.9) 3.00 21.7 7.2 0. Peer comparison Na me Fis ca l Yr End M a rk e t Ca p ( $m) Px La s t Da te FY14A PE ( x) FY15F FY16F PE (x) PE ( x) S a le s Ne t Profit FY14 FY14 ( mlns ) ( mlns ) Ne t Profit M a rgin FY14 FY14A ROE (%) FY14A Div Yld ( %) FY14A P/BV (x) Gros s Ma rgin Ne t De bt to FY14 Equity ( x) FY15F EPS Gth ( %) FY16F EPS Gth ( %) STARBURST HOLDINGS 12/2014 120. which is dependent on its ability to secure new contracts.7) (27.1 55.3 56.4 8.Company Focus Starburst Holdings Valuation There are only a few players in this industry.0 8.a.0 5.480 9.5) 453. Among SGX-listed companies.398.56 is based on 12x FY16 PE.

2 (6.0 (0.0 8.6 20.3 (2.2 16.6) 0.0 8.0 25.0 56.7 Income Statement (S$ m) FY Dec Revenue Cost of Goods Sold Gross Profit Other Opng (Exp)/Inc Operating Profit Other Non Opg (Exp)/Inc Associates & JV Inc Net Interest (Exp)/Inc Exceptional Gain/(Loss) Pre-tax Profit Tax Minority Interest Preference Dividend Net Profit Net Profit before Except.0 31.0 32.8 53.4 22.6 0.6 9.9) 14.7 33.4 20.0) 11.2 13.5 43.3) 24.5) 17.0% 39.0 48.0 15.1 21.6 (2.3 Total 21.3 25.2 18.1 (1.2 50.0 0.0 (0.0 16.2 0.5 11.9 4.8) 0.8) 3.Company Focus Starburst Holdings Segmental Breakdown FY Dec 2013A 2014A 2015F 2016F 2017F Revenues (S$ m) Firearm shooting ranges Maintenance services and others 18.0 33.9 21.0 (0.2) 16.1 2.0 35.0 57.2) (72.0 0.0 2.0 57.3 29.4) 0.0% 34.3 (23.8 61.0 5.3 56.4) 0.4 (17.2 17.5 27.6) 0.0 0.0% 2013A 2014A Operating Margin % 2015F 2016F 2017F Net Income Margin % .3 0. EBITDA Growth Revenue Gth (%) EBITDA Gth (%) Opg Profit Gth (%) Net Profit Gth (%) Margins & Ratio Gross Margins (%) Opg Profit Margin (%) Net Profit Margin (%) ROAE (%) ROA (%) ROCE (%) Div Payout Ratio (%) Net Interest Cover (x) Source: Company.8 (2.8 49.6 60.5) 99.7 34.0 0.4) 12.0 (8.9 36.4 29.8 (19.4) 10.0 12.8 2.0 (2.5) 29.1 254.8 357.0% 9.5 44.0 56.1 453.0 0.0 14.7 20.0 14.8 56.4 50.0 13.0 0.6 20.0 (0.2) 22. DBS Bank Page 5 Margins Trend 49.1 53.1) 0.0 87.0% 29.7 10.2 18.7 8.4 41.7 16.0 57.0 48.0% 44.0 43.5 (9.0 0.0 (11.0) (83.0 17.0% 24.4 34.0 12.3 56.0 0.0 4.8 124.2 4.0 10.5 18.8 (44.3) 0.8 17.3) 0.5 35.3) 0.5 26.3 Gross Margins (%) 60.0 0.4) 0.2 17.2 14.0 2013A 2014A 2015F 2016F 2017F 21.6 50.7 22.4 40.0 2.0 0.2 0.0% 19.0 22.4 34.7) (80.0 14.0 (0.1 3.6 39.2 2.0 0.0 (7.9 (12.0% 14.0 39.3 2.6 (0.1 20.7 16.5 10.0 56.

4) (49.6 3. & Liab.2) (45.9 0.2) 7.2) nm nm nm 63.7 46.3 14.3% Bank.7 0.7 107.8 47.9 3.3 9.7 0.8 5.3 0.6 6.Company Focus Starburst Holdings Growth Revenue Gth (%) EBITDA Gth (%) Opg Profit Gth (%) Net Profit Gth (%) Margins Gross Margins (%) Opg Profit Margins (%) Net Profit Margins (%) Balance Sheet (S$ m) FY Dec 4Q2014 1Q2015 16 60% 14 40% 12 37.9 59.3 227.0 56.2 CASH CASH 172.7 3.2 0.9% Net Fixed Assets 16.1 26 17 168. Cash and Liquid Assets 55.3% .8 6.5 38 12 104. Capital Net Cash/(Debt) Debtors Turn (avg days) Creditors Turn (avg days) Inventory Turn (avg days) Asset Turnover (x) Current Ratio (x) Quick Ratio (x) Net Debt/Equity (X) Net Debt/Equity ex MI (X) Capex to Debt (%) Z-Score (X) -40% 4 1Q2015 (4.4 (72.2 16.6 21.9) 2013A 2014A 2015F 2016F 2017F 9 0 7 0 3 10 11 40 9 0 5 18 2 13 16 63 8 0 5 26 6 7 16 67 22 0 5 13 12 14 16 81 21 0 4 21 15 17 16 94 ST Debt Creditor Other Current Liab LT Debt Other LT Liabilities Shareholder’s Equity Minority Interests Total Cap.8 8.1) 0% 8 3Q2014 N/A nm nm nm 20% 10 2Q2014 3 (2) 0 (1) 0 0 0 0 0 0 0 0 (1) (1) 0 1Q2014 10 (6) 4 (1) 3 0 0 0 0 3 0 0 3 3 3 4Q2013 8 (3) 5 (3) 2 0 0 0 0 2 0 0 2 2 2 3Q2013 8 (3) 5 (1) 4 0 0 0 0 4 (1) 0 3 3 4 2Q2013 14 (5) 9 (1) 7 0 0 0 0 7 (1) 0 6 6 8 1Q2013 Revenue Cost of Goods Sold Gross Profit Other Oper.5 CASH CASH 25.5% Assocs'/JVs 0.1 102.6) (50.3 61.3 0.4 26.8 1.6 6.3 162.0) -20% 6 4Q2014 (41.2 34 4 86.2 39.7 44. 3 4 2 4 1 26 0 40 0 6 3 2 1 51 0 63 0 3 0 9 1 53 0 67 0 6 2 9 1 63 0 81 0 7 3 9 1 74 0 94 18 (7) 114.1) (46.2 105.7 2.3 Source: Company.0 89.8 54.5 188.1 43.8 CASH CASH 5.6) (51.6 23 16 110.3) (17.3 9.2 37. EBITDA Revenue Trend 3Q2014 4Q2012 Quarterly / Interim Income Statement (S$ m) FY Dec 1Q2014 2Q2014 Debtors 14.6 6.2 0.5 7. DBS Bank Page 6 2 -60% 0 -80% Revenue Revenue Growth % (QoQ) Lack of new contract wins Asset Breakdown (2015) Net Fixed Assets Invts in Associates & JVs Other LT Assets Cash & ST Invts Inventory Debtors Other Current Assets Total Assets Non-Cash Wkg.4 116.5 24.5 63.4 (15. (Exp)/Inc Operating Profit Other Non Opg (Exp)/Inc Associates & JV Inc Net Interest (Exp)/Inc Exceptional Gain/(Loss) Pre-tax Profit Tax Minority Interest Net Profit Net profit bef Except.0% Inventory 13.7) (43.5 169.8 CASH CASH (1.0 28.

29 Jul-14 Nov-14 Mar-15 Not e : Share price and Target price are adjusted for corporate actions.49 0.4 (3.0) 16 1 (1) 0 (6) 0 9 (1) 0 0 0 0 (1) (2) (4) 15 0 8 0 17 6.2) 17 2 (2) 0 (4) 0 12 (1) 0 0 0 0 (1) (3) 0 0 0 (3) 0 9 6.Company Focus Starburst Holdings Cash Flow Statement (S$ m) FY Dec Pre-Tax Profit Dep. DBS Bank Proceeds from IPO Target Price & Ratings History 0. & JV Div from Assoc & JV Other Investing CF Net Investing CF Div Paid Chg in Gross Debt Capital Issues Other Financing CF Net Financing CF Currency Adjustments Chg in Cash Opg CFPS (S cts) Free CFPS (S cts) Capital Expenditure 2013A 2014A 2015F 2016F 2017F 10 0 (1) 0 (15) (1) (7) (1) 0 0 0 (2) (3) (2) 4 0 0 2 0 (7) 3.5 14 1 0 0 (10) 0 5 (16) 0 0 0 0 (16) (2) 0 0 0 (2) 0 (13) 6. & JV Inc/(loss) Chg in Wkg. Source: DBS Bank Page 7 S.79 S$ 0. Other Operating CF Net Operating CF Capital Exp.59 1 0.77 R a ti n g Buy . & Amort.5 4.4 3 1 (3) 0 0 0 1 0 0 0 0 0 0 0 7 0 0 7 0 8 0.69 0.0 3.5 0.2 (4.64 Ta rg e t Pri c e 0. Da te 1: 26 Sep 14 Cl o s i n g Pri c e 0.6 S$m 18 16 14 12 10 8 6 4 2 0 2013A 2014A 2015F 2016F 2017F Capital Expenditure (-) Acquisition of leasehold land and buildings Finance acquisition of leasehold land and buildings Source: Company.No .(net) Other Invts.Cap. Tax Paid Assoc.(net) Invts in Assoc.39 0.

-10% to +10% for large caps) FULLY VALUED (negative total return i. DBS Bank Ltd. Any valuations. their subsidiaries and/or other affiliates have received compensation. forecasts.. certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. related to specific recommendations or views expressed in this report. its respective connected and associated corporations and affiliates (collectively. is.. Any recommendation contained in this document does not have regard to the specific investment objectives. their subsidiaries and/or other affiliates may beneficially own a total of 1% of any class of common equity securities of the company mentioned as of 31 May 2015. The DBS Group. Opinions expressed are subject to change without notice. forecasts. opinions. The research set out in this report is based on information obtained from sources believed to be reliable. ratings or risk assessments. nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months. directly. the “DBS Vickers Group”) only and no part of this document may be (i) copied. The DBS Group accepts no liability whatsoever for any direct.-registered broker-dealer. It can be expected that one or more of the estimates on which the valuations. a U. or indirectly. 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. photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBS Bank Ltd. 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). Compensation for investment banking services: DBS Bank Ltd. but we (which collectively refers to DBS Bank Ltd. DBS Bank Ltd. estimates. opinions. officers. opinions. defined as follows: STRONG BUY (>20% total return over the next 3 months. The analyst also certifies that no part of his/her compensation was. its respective connected and associated corporations. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. forecasts. DBS Vickers Securities (USA) Inc ("DBSVUSA")"). ratings or risk assessments or their underlying assumptions will be achieved. ANALYST CERTIFICATION The research analyst primarily responsible for the content of this research report. the analyst and his/her spouse and/or relatives who are financially dependent on the analyst.Company Focus Starburst Holdings DBS Bank recommendations are based an Absolute Total Return* Rating system. >10% for large caps) HOLD (-10% to +15% total return over the next 12 months for small caps. DBSVUSA. opinions. 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. > -10% over the next 12 months) SELL (negative total return of > -20% over the next 3 months. 3. who should obtain separate independent legal or financial advice. forecasts.S. estimates. ratings or risk assessments stated therein. with identifiable catalysts within this time frame) Share price appreciation + dividends GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Bank Ltd. ratings or risk assessments were based will not materialize or will vary significantly from actual results. opinions. forecasts. or will be. their subsidiaries and/or other affiliates do not have a proprietary position in the securities recommended in this report as of 31 May 2015. its accuracy is not guaranteed. DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”).e. Page 8 . that: (a) such valuations. The valuations. affiliates and their respective directors. within the past 12 months. estimates. the inclusion of the valuations. The information in this document is subject to change without notice. and (b) there is any assurance that future results or events will be consistent with any such valuations. DBSVS.. estimates. 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. DBSVS. do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities). 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. 2. opinions. employees and agents (collectively. financial situation and the particular needs of any specific addressee. and within the next 3 months may receive or intend to seek compensation for investment banking services from Starburst Holdings. does not have its own investment banking or research department. in part or in whole. estimates. the “DBS Group”)) do not make any representation or warranty as to its accuracy. with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps. completeness or correctness. estimates. forecasts. As of the date of the report is published. COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. it may be incomplete or condensed and it may not contain all material information concerning the company (or companies) referred to in this report. DBSVUSA. Any assumptions made in this report that refers to commodities. This report is solely intended for the clients of DBS Bank Ltd and DBS Vickers Securities (Singapore) Pte Ltd. The DBS Group may have positions in. estimates. 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. and may effect transactions in securities mentioned herein and may also perform or seek to perform broking. This document is prepared for general circulation. investment banking and other banking services for these companies.. forecasts. Therefore. opinions. are for the purposes of making forecasts for the company (or companies) mentioned herein.

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