Company Results Dairy Farm International Dasin Retail Trust - StocksBNB

 
Company Results Dairy Farm International Dasin Retail Trust - StocksBNB
12 March 2018, 8.15am/11.15am Morning Call/Webinar

                       Company Results                                                                                                                                                       The Phillip 20
                        Dairy Farm International                                                                                                                                              February Review
                              Dasin Retail Trust
                                                                                                                                                                ETF Model Portfolio
                                          Company IPO                                                                                                                                         February Update
                                                            Sasseur REIT
                                                              Ayondo Ltd                                                      Singapore Strategy Update
                                                                                                                                                                                                  March 2018

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Company Results Dairy Farm International Dasin Retail Trust - StocksBNB
Disclaimer

              The information contained in this presentation has been obtained from public sources which Phillip Securities Research Pte Ltd (“PSR”) has no reason
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                                                                                                                                                                                             2
Company Results Dairy Farm International Dasin Retail Trust - StocksBNB
Dairy Farm International
                                                                                    Biting the bullet for better profitability

                                                                                                                                                                                                                    Soh Lin Sin
                                                                                                                                                                                             Phillip Securities Research Pte Ltd
                                                                                                                                                                                                                12 March 2018

Phillip Securities Research Pte Ltd (A member of PhillipCapital) Co. Reg. No. 198803136N © PhillipCapital 2017. All Rights Reserved. For internal circulation only.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation.
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                                                                                                                                                                                                                                   3
Company Results Dairy Farm International Dasin Retail Trust - StocksBNB
Dairy Farm Int’l (Buy, TP: $9.83, Last: $8.03)
         Results at a glance
         (USD mn)                           FY17      FY16 YoY (%) Comments
         Supermkts & Hypermkts              6,018    6,217       -3.2%   Cha l l engi ng envi ronment wi th i ncrea s ed competition i n SE As i a ma rkets
         Conveni ence Stores                2,020    1,951        3.6%   Better performa nce a cros s mos t ma rkets
         Hea l th a nd Bea uty              2,597    2,436        6.6%   Better performa nce a cros s mos t ma rkets
         Home Furni s hi ngs                  653      597        9.4%   New 4th s tore i n Hong Kong a nd hi gher s a l es i n Ta i wa n a nd Indones i a
         Revenue                           11,289   11,201        0.8% As a bove
         Gros s profi t                     3,433    3,386        1.4% Gros s ma rgi n +0.2pp to 30.4% i n FY17
         Core EBITDA                          588      665      -11.6% Hi gher opera ting expens es i n Superma rkets & Hyperma rket a nd US$9mn
                                                                       s tart-up cos ts from new IKEA s tore i n HK
         Core EBIT                           367       453      -18.8% -2.7% i f ex. US$72.8mn of bus i nes s cha nge cos ts
         Sha re of Res ul ts of As s oc.     143       115       25.2% Maxim's: Sa l es +11%; Profi t +8%
         & JVs                                                         Yonghui: Sa l es +17%; Profi t +45%
                                                                                                                                                                                Assoc. & JVs contributed
         PATMI                               403       460      -12.5% +1.5% i f ex. US$64.5mn of bus i nes s cha nge cos ts                                                    28.2% of FY17 EBIT (vs
         DPS (cents )                        21.0      21.0                                                                                                                     FY16’s 20.5%)
         Source: Company, PSR

       Positive performances in most of the segments; Strong results from its key associates
        Op. profit from Convenience Stores (+15.5%) and Health & Beauty (+19.6%); Margins improved
       Persistent weakness in the SE Asia Supermkts & Hypermkts
        Soft consumer sentiment, intensifying competition (pricing, e-commerce and smaller format stores)
       Higher operating costs, gestation costs and business change costs hurt its core operating profit
        2 huge one-offs in FY17: US$9mn pre-opening expenses from the new 4th store in Hong Kong (opened in Oct-17); and
          US$72.8mn of business change costs
       Positive outlook
        Expect recovery in consumer sentiment as well as higher Chinese tourist arrivals to HK and Macau to gain momentum in 2018
        A new Group Chief Executive, Ian McLeod, joined the Group in 18 Sep-17
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                                                                                                                                                                                                           4
Company Results Dairy Farm International Dasin Retail Trust - StocksBNB
Dairy Farm Int’l (Buy, TP: $9.83, Last: $8.03)
                 Well-established regional presence with long track record. Added a net 633 stores in 2017. At 31 Dec-17,
                  the Group had 7,181 stores in operation in 11 countries and territories, including its interest in 779 Yonghui
                  stores in China and 1,210 Maxim’s stores.

                 Strong cash generation and solid balance sheet to support its expansion plan. FY17 net cash flow from
                  operating activities of US$671mn (+23.7% YoY); Net gearing ratio improved to 0.34x as at end-FY17 from
                  0.41x a year ago.

                 Increases accessibility via online and offline. Partnering Meituan (China), Happy Fresh (Malaysia) and Go-
                  Jek (Indonesia) to enhance last-mile delivery capabilities.

                 Expanding store network. In particular, two new IKEA stores in Taiwan (scheduled to open one store each in
                  2019 and 2021), and a 2nd IKEA store in Indonesia (secured site and pending licensing approval)

                 Moving towards smaller store format. Smaller store typically has shorter breakeven period and higher
                  profitability per retail area.

                 Improve profitability via better sales mix and efficiency gains. (a) New distribution centres to drive
                  economies of scale and provide capacity for wider range of product offerings. (b) Push for higher margin
                  products – Fresh, Own Brand (i.e. private label), Upscale brand, and Ready-to-Eat food.
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                                                                                                                                                                                             5
Company Results Dairy Farm International Dasin Retail Trust - StocksBNB
Dasin Retail Trust
                                                                                  Tying up FY2017 on a steady footing

                                                                                                                                                                                                        Phillip Research Team
                                                                                                                                                                                             Phillip Securities Research Pte Ltd
                                                                                                                                                                                                                12 March 2018

Phillip Securities Research Pte Ltd (A member of PhillipCapital) Co. Reg. No. 198803136N © PhillipCapital 2017. All Rights Reserved. For internal circulation only.
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                                                                                                                                                                                                                                   6
Company Results Dairy Farm International Dasin Retail Trust - StocksBNB
Dasin Retail Trust
      (BUY (Maintained), TP: S$0.98, Last: S$0.87)

      Organic growth captured from positive rental reversions and step-up escalations
      •Stripping out Shiqi Metro Mall, baseline revenue continues to expand, with a positive 12.7% rental reversion in FY2017

      Improved occupancy from 99.2% to 100%
      •Strong occupancy for all four malls, with an above 90% tenant retention rate.

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                                                                                                                                                                                             7
Company Results Dairy Farm International Dasin Retail Trust - StocksBNB
Dasin Retail Trust
          (BUY (Maintained), TP: S$0.98, Last: S$0.87)

       Revenue in FY17 was slightly lower than expected.
       •Reversion rates of Ocean Metro and Dasin E-Colour were lower than our estimates. Dasin E-Colour’s revenue was compressed by
       the negative reversions of the ongoing recalibration of certain stall formats (atrium, advertising). However, this measure is temporary
       and is part of Dasin’s ongoing asset enhancement, which will drive efficiency and productivity.

      Source: Company

       Outlook: Inorganic growth will be through its ready pipeline of 19 properties. We expect continued organic growth as all malls are
       reporting at 100% occupancy. Zhongshan’s economy continues to be robust, with GDP expanding 7.73% in 2017 and exports
       rebounding sharply in 2017 with a YoY growth of 13.6%.

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                                                                                                                                                                                             8
Company IPO: Sasseur REIT
                                                                                                   Expected Listing 28 March 2018

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                                                                                                                                                                                             9
Sasseur REIT(Offer price S$0.80, Expected Listing 28 March 2018)
              Offering size/price: S$396mn (495mn Offer shares @ S$0.80)
                                                                                                                                                                                                Cornerstone Investors (c.46% of total offering size)
              Market cap: S$944mn                                                                                                                                                              Adroit Ideology Ltd (JD.com)
                                                                                                                                                                                                Bangkok Life Assurance
              Portfolio assets: 4 outlet malls in Tier 2 PRC Cities Chongqing/Bishan/Hefei/Kunming                                                                                             CKK Holdings (Charles & Keith)
              Tenant exposure: Portfolio WALE (By NPI) 1.2y, diversified tenant base - top 10 tenants occupy                                                                                   Entrepolis Ltd (YCH Group)
                                                                                                                                                                                                Secoo Holding Ltd
               13.4% of total rental income. Main brands offered by top 10 tenants include Adidas, Bally, Coach, Fila,
                                                                                                                                                                                                Sparkling Gateway Pte. Ltd (L Capital Asia 2 Pte Ltd)
               Nike, Puma, Columbia                                                                                                                                                             TMB Asset Mgmt
                                                                                                                                                                                                Source: Compa ny, PSR
              Distribution yield: 7.50% for FY18
              Distribution: 100% of distributable income until FY19, at least 90% thereafter
       Investment Merits:
              Exposure to fast-growing retail outlet mall sector in PRC
              First-mover advantage in the Tier 2 PRC cities that Initial portfolio properties are located in

                                                                                                                      Mkt Cap (SGD                                                      Latest Gearing                        Average cost
                                                                         PSR CALL         PSR TARGET PRICE                                       Price (S$)           Dvd Yld: D-1                                P/B
                                   Name                                                                                   mn)                                                                (%)                               of debt (%)
        SASSEUR REIT1                                                                                                                944                     0.80             7.50               30-35            1.00             5.30
        CAPITALAND RETAIL CHINA TRUST                                     NEUTRAL                   1.66                          1,542                      1.59             6.36               28.40            0.99             2.49
        BHG RETAIL REIT                                                                                                             401                      0.80             7.20               32.20            0.93             3.70
        DASIN RETAIL REIT                                                                                                           497                      0.90             8.95               30.70            0.59             5.00
        Source: Bloomberg, PSR
        1
            Indicative numbers from Preliminary Prospectus
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                                                                                                                                                                                                                                                   10
Sasseur REIT(Offer price S$0.80, Expected Listing 28 March 2018)
      Property (% of NPI as at Sept 17)                    2014        2015         2016        Sep-17
      Chongqing (71%)                                     99.6%       99.9%        97.8%         96.0%
      Bishan (9%)                                         74.3%       79.2%        81.4%         85.6%
      Hefei (12%)                                                                  82.1%         93.3%
      Kunming (8%)                                                                 82.0%         90.7%
      Portfolio average                                   88.4%       90.7%        86.1%         91.8%
      Source: IPO Pros pectus

                                                                                                                                            Source: Company

                                                                                              Forecast Period 20181
                                             Property                        Fixed Component (S$mn)    EMA Resultant Rent (S$mn)
                                             Chongqing outlets                        29.8                         44.6
                                             Bishan Outlets                            6.1                          8.9
                                             Hefei Outlets                            18.4                         27.1
                                             Kunming Outlets                          12.2                         18.0                                       Includes variable component
                                             Total                                    66.4                         98.5                                       (% of sales)

                                             2018 Minimum Rent (S$)                                  98.52                                 To be topped up to minimum rent if
                                             2019 Minimum Rent                                      127.38
                                                                                                                                           falls below minimum rent figure
                                             2020 onwards                                           127.38

                                             Source: IPO Prospectus, Conversion rate SGDCNY 4.8
                                             1
                                                 1 March to 31 Dec 2018

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                                                                                                                                                                                             11
Company IPO: Ayondo Ltd
                                                                                                      Expected Listing 26 March 2018

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                                                                                                                                                                                             12
Ayondo Ltd (Offer price range:S$0.25 – S$0.29, Listing 26 Mar 2018)
     Ayondo is a global Europe based FinTech with bulk of revenue generated in Europe. The
     group serves B2B & B2C with 3 pillars of revenue deriving from social trading, trading
     and casual trading.

     •Estimated Market Cap: S$133.3m – S$149m

     •Revenue ~S$26m: Social trading, Trading & Casual trading

     •Regulated & licensed by UK (FCA) & Germany (BaFin)

     •Positives:
     Scalable platform business
     Ability to charge higher spread to clients
     Enjoying 50% growth in number of active clients

     •Negatives:
     Liquidity & credit risks
     Change in regulatory environment                                                           Source: Company

     May require additional funding for growth
     Loss making for the past 4 years

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Ayondo Ltd (Offer price range:S$0.25 – S$0.29, Listing 26 Mar 2018)
                                                                                                                                           •Bulk of revenue comes from
                                                                                                                                           spread trading

                                                                                                                                           •Large other operating costs from
                                                                                                                                           IT and marketing expenditure

                                                                                                                                           •No. of active clients continues to
                                                                                                                                           grow at 54% YoY marketing
                                                                                                                                           efforts will continue to entice more
                                                                                                                                           clients to join

     Source: IPO prospectus

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The Phillip 20
                                                                                                                                                                      February Review
                                                                                                                                                                                                                     Jeremy Ng
                                                                                                                                                                                             Phillip Securities Research Pte Ltd
                                                                                                                                                                                                                12 March 2018

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                                                                                                                                                                                                                                   15
Straits Times Index – Technical Analysis
         STI Daily Chart
         • Strong bullish rejection off the 3354 – 3341 support area kept the uptrend intact

      -0.45% in Feb 2018
      Source: Bloomberg, PSR Red line = 20 period moving average, Blue line = 60 period moving average, Green line = 200 period moving average
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                                                                                                                                                                                             16
Realised P&L for February 18

                                                                                         The Phillip 20 Portfolio - Realised P&L for February 2018
                          Company Name                                   Ticker              L                Entry Date                       Entry price                      Exit date    Exit Price    P&L
         SUNNINGDALE TECH                                                 BHQ              Long                23-Jan-18                          1.940                         7-Feb-18       1.860      -4.12%
         YZJ SHIPBLDG SGD                                                 BS6              Long                10-Jan-18                          1.610                         7-Feb-18       1.470      -8.70%
         PANUNITED                                                        P52              Long               22-Aug-17                           0.550                         9-Feb-18      0.666*       21.15
         YOMA STRATEGIC                                                    Z59             Long                1-Dec-17                           0.505                         9-Feb-18       0.470      -6.93%
         CHINA AVIATION                                                   G92              Long               13-Dec-17                           1.670                        13-Feb-18       1.510      -9.58%
         SPH                                                              T39              Long                25-Sep-17                          2.750                        13-Feb-18       2.530      -8.00%
         GOLDEN AGRI-RES                                                  E5H              Long                26-Oct-17                          0.400                        13-Feb-18       0.350      -12.50%
         THAIBEV                                                          Y92              Long               14-Mar-17                           0.955                        23-Feb-18       0.825      -13.61%
         Source: Bloomberg, PSR

      *PanUnited last price includes the Xinghua Port Share at HKD1.46.

Phillip Securities Research Pte Ltd (A member of PhillipCapital) Co. Reg. No. 198803136N © PhillipCapital 2017. All Rights Reserved. For internal circulation only.
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                                                                                                                                                                                                                    17
New Entries for February 18

                                                                         The Phillip 20 Portfolio – February new entries as of 9 March 2018

                 Company Name                           Ticker                       L                Entry Date            Entry price              Stop Loss                Last price     Current gain/loss (%)

         OCBC                                            O39                      Long                 9-Feb-18                12.360                  11.430                   13.250              7.20%

         800 SUPER                                        5TG                     Long                 13-Feb-18                1.110                   0.990                    1.110              0.00%

         SUNRIGHT                                         S71                     Long                 20-Feb-18                0.905                   0.755                    0.980              8.29%

         MICRO-MECHANICS                                 5DD                      Long                 21-Feb-18                2.220                   1.890                    2.130              -4.05%
           Source: Bloomberg, PSR

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                                                                                                                                                                                                                     18
Monthly performance

                                      Source: Bloomberg, PSR

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                                                                                                                                                                                             19
Total return since May, as of 28 February 2018

                                        Source: Bloomberg, PSR

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                                                                                                                                                                                             20
Watchlist
                 China Sunsine                                                                                  Mermaid Maritime
                 Sunningdale Tech                                                                               Hi-P
                 Jiutian Chemical                                                                               Memtech Intl
                 POSH                                                                                           AEM
                 Olam Intl                                                                                      Haw Par
                 Hotung Inv                                                                                     Shangri-La HKD
                 SingPost                                                                                       SBS Transit
                 Geo Energy Res                                                                                 Wheelock Prop
                 Valuetronics                                                                                   Venture
                 Asian Pay TV                                                                                   DBS
                 UOL                                                                                            UnUsUal
                 Avi-Tech                                                                                       Sunright
                 KimHeng Offshore                                                                               Oxley
                 UOI                                                                                            Nordic
                 Yongnam                                                                                        Centurion
                 Allied Tech                                                                                    SATS
                 CityDev                                                                                        Keong Hong
                 InnoTek                                                                                        Clearbridge
                 UOB                                                                                            UMS

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                                                                                                                                                                                             21
Current Portfolio
                                                         The Phillip 20 Portfolio - Our top technical picks as of 28 February 2018
                               Company Name                  Ticker       L        Entry Date         Entry price        Stop Loss         Last price           Current gain/loss (%)
                        800 SUPER                             5TG       Long       13-Feb-18            1.110              0.990             1.090                    -1.80%
                        BREADTALK                             5DA       Long        2-Nov-17            1.645              1.470             1.790                     8.81%
                        CHIP ENG SENG                         C29       Long       12-Dec-17            0.945              0.880             0.945                     0.00%
                        ELLIPSIZ                              BIX       Long        3-Aug-17            0.645              0.575             0.670                     3.88%
                        FRENCKEN                              E28       Long        20-Jul-17           0.525              0.445             0.625                    19.05%
                        F&N                                   F99       Long       24-Mar-17            2.220              2.220             2.360                     6.31%
                        GOLDEN ENERGY                         AUE       Long        2-Aug-17            0.425              0.360             0.410                    -3.53%
                        JUMBO                                 42R       Long       22-Sep-17            0.575              0.525             0.570                    -0.87%
                        MICRO-MECHANICS                       5DD       Long       21-Feb-18            2.220              1.890             2.160                    -2.70%
                        MIYOSHI                               M03       Long       23-Aug-17            0.074              0.062             0.072                    -2.70%
                        OCBC                                  O39       Long        9-Feb-18            12.360            11.430            13.060                     5.66%
                        RIVERSTONE                            AP4       Long        12-Jul-17           1.065              0.995             1.040                    -2.35%
                        SUNRIGHT                              S71       Long       20-Feb-18            0.905              0.755             0.875                    -3.31%
                        SINOSTAR PEC                          C9Q       Long       28-Nov-17            0.194              0.149             0.181                    -6.70%
                        WING TAI                              W05       Long       11-Dec-17            2.270              2.060             2.200                    -3.08%

                        Monthly Phillip 20 performance update
                        May 17 performance
                        June 17 performance
                        July 17 Performance
                        August 17 Performance
                        September 17 Performance
                        October 17 Performance
                        November 17 Performance
                        December 17 Performance
                        January 18 Performance
                        **Take profit will be updated accordingly in the future technical pulse report
                                                                                                                                                        Source: Bloomberg, PSR

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                                                                                                                                                                                             22
ETF Model Portfolio
                                                                                                                                                                            February Update

                                                                                                                                                                                                                   Pei Sai Teng
                                                                                                                                                                                             Phillip Securities Research Pte Ltd
                                                                                                                                                                                                                12 March 2018

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                                                                                                                                                                                                                                   23
ETF Model Portfolio – February 2018
                      Aggressive Model Portfolio                                             Balanced Model Portfolio                                            Conservative Model Portfolio
                                        Short Term      Sovereign &          Commodities                                                                                                              Commodities
      Commodities                                                                                                                                        Chi na Equities     Gold
                                        Bond            Credit Bond             5%                   Gol d                                                                                               5%
         10%                                                                                                                                                   6%             5%
                       Gol d            10%                 5%                                China 5%            Short Term
                         5%                                                                 Equi ties                                                                                        Short Term
                                                                                                                       Bond                           Ja pa n Equities
                   China                            U.S.                                       10%                                                                                             Bond
                                                                                                                         25%                                  6%
                  Equi ties                       Equities                                Ja pa n                                                                                               30%
                                                                                                                                                      As i a-ex Japan
                    13%                             13%                                  Equi ties                                                      Equities
                                                                                           10%                                                               6%
                     Ja pa n                                                                 As i a-ex
                                          Europe                                                                                                       Europe Equities
                    Equi ties                                                                  Ja pa n              U.S.          Sovereign &
                                          Equi ties                                                                                                            6%
                      13% As i a-ex Japan                                                    Equities Europe Equities             Credit Bond                                         Sovereign &
                                            16%
                              Equi ties                                                         12%      Equities   10%              10%                   U.S. Equi ties             Credi t Bond
                                15%                                                                        13%                                                  6%                       30%

                                                                               1 mth                        YTD                         1 yr                          3yr                      5 yr
         SG Aggressive Portfolio                                                -4.1                         2.0                        20.3                          23.3                     37.2
         SG Balanced Portfolio                                                  -3.6                         1.0                        16.8                          19.7                     29.5
         SG Conservative Portfolio                                              -2.9                         0.0                        10.7                          14.9                     19.7
         US Aggressive Portfolio                                                -4.4                         0.8                        19.4                          22.4                     39.2
         US Balanced Portfolio                                                  -3.6                         0.2                        15.3                          18.1                     32.2
         US Conservative Portfolio                                              -2.7                        -0.9                         8.9                          12.0                     20.8
         Note: Portfolio returns are inclusive of dividend reinvested and does not include any transaction costs or any other fees. Portfolio returns are calculated in USD.
         Performance returns prior to May 2017 are backtested results on the assumption that the portfolios are rebalanced back to strategic asset allocation at the
         end of each calendar year.
         **Past performance is not an indicator of future performance.

Phillip Securities Research Pte Ltd (A member of PhillipCapital) Co. Reg. No. 198803136N © PhillipCapital 2017. All Rights Reserved. For internal circulation only.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation.
Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
                                                                                                                                                                                                                    24
SAA & Selected ETFs
     Asset Class                                                     Singapore Listed ETFs                                                                                     U.S. Listed ETFs
     Fixed-Income
     Short Term Bond              ABF Singapore Bond Index Fund                                                      SGX: A35          Short-Term Bond ETF                                        AMEX: BSV
     Sovereign & Credit
                                  iShares J.P. Morgan USD Asia Credit Bond Index ETF                                 SGX: QL2          iShares iBoxx $ Investment Grade Corporate Bond ETF        AMEX: LQD
     Bond
     Equity
     U.S. Equities                SPDR S&P500 ETF Trust                                                              SGX: S27          SPDR S&P 500 ETF                                           AMEX: SPY
     Europe Equities              db x-trackers MSCI Europe Index UCITS ETF                                          SGX: IH3          Vanguard FTSE Europe ETF                                   AMEX: VGK
     Asia-ex Japan
                                  LYXOR MSCI AC Asia Pacific ex Japan UCITS ETF                                      SGX: P60          iShares MSCI All Country Asia ex Japan ETF                 Nasdaq: AAXJ
     Equities
     Japan Equities               db x-trackers - MSCI Japan TRN Index UCITS ETF                                     SGX: LF2          iShares MSCI Japan ETF                                     AMEX: EWJ
     China Equities               db x-trackers MSCI China TRN Index UCITS ETF                                       SGX: LG9          iShares MSCI China ETF                                     Nasdaq: MCHI
     Alternatives
     Gold                         SPDR Gold Shares                                                                   SGX: O87          SPDR Gold Shares ETF                                       AMEX: GLD
                                  LYXOR Commodities Thomson Reuters/CoreComm CRB TR
      Commodities                                                                                                    SGX: A0W          PowerShares DB Commodity Tracking ETF                      AMEX: DBC
                                  UCITS ETF

Phillip Securities Research Pte Ltd (A member of PhillipCapital) Co. Reg. No. 198803136N © PhillipCapital 2017. All Rights Reserved. For internal circulation only.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation.
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                                                                                                                                                                                                                 25
Key Charts
                                               Investment Grade Spread                                                                                                           High Yield Spread                                                                                                                                             Emerging Markets Spread
                                                                                                                       9.0                                                                                                                                                                    9.0
            2.0
                                                                                                                       8.0                                                                                                                                                                    8.0
            1.8                                                                                                                                                                                                                                                                               7.0
                                                                                                                       7.0

            1.6                                                                                                        6.0                                                                                                                                                                    6.0

            1.4                                                                                                        5.0                                                                                                                                                                    5.0

                                                                                                                       4.0                                                                                                                                                                    4.0
            1.2
                                                                                                                       3.0                                                                                                                                                                    3.0
            1.0
                                                                                                                       2.0                                                                                                                                                                    2.0
            0.8
                                                                                                                       1.0                                                                                                                                                                    1.0
            0.6                                                                                                        0.0                                                                                                                                                                    0.0

                                                                                                     Jul-17
                   Jan-13

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                                        U.S.                     Gobal                      Euro                                                                       U.S.                               Global                                    Euro                                                                             Emerging Markets                                        Asia                           Latam

                                                                 2s:10s                                                                                                                        TED Spread                                                                                                                                      Volatility Measurement
                                                                                                                       70                                                                                                                                                                     40
             150
             135
                                                                                                                       60
             120
                                                                                                                                                                                                                                                                                              30
             105                                                                                                       50
              90
                                                                                                                       40                                                                                                                                                                     20
              75
              60                                                                                                       30
              45                                                                                                                                                                                                                                                                              10
              30                                                                                                       20

              15
                                                                                                                       10                                                                                                                                                                     0
               0

                                                                                                                                                                                                                                                                                                   Jan-17
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                                                                                                                                                                                                                                                                                                                                                        VIX Index                                    V2x index

Phillip Securities Research Pte Ltd (A member of PhillipCapital) Co. Reg. No. 198803136N © PhillipCapital 2017. All Rights Reserved. For internal circulation only.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation.
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                                                                                                                                                                                                                                                                                                                                                                                                                                                                     26
Singapore Strategy Update
                                                                                                                                                                                             March 2018
                                                                                                                                                                                                                     Paul Chew
                                                                                                                                                                                             Phillip Securities Research Pte Ltd
                                                                                                                                                                                                                12 March 2018

Phillip Securities Research Pte Ltd (A member of PhillipCapital) Co. Reg. No. 198803136N © PhillipCapital 2017. All Rights Reserved. For internal circulation only.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation.
Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
                                                                                                                                                                                                                                   27
Singapore Strategy Update – March 2018

      • Macro/Sector
                 Trade wars is a concern; US investigation of China violating IP rights; Republican push back and only 2% of
                  imports so far
                 Latest US data makes goldilocks scenario back in play; monetary tightening scare remain in the
                  background; some inflation data rising above trend; worst case is tighten when economies rolling over
                 Singapore sectors: Property has been slower, secondary sales weakest since relaxation of property
                  measures; construction and healthcare seen some recovery
                 Electronics: semiconductor sales still robust

      • BUY sustainable yield, Overweight cyclicals such as property, banks, electronics, consumer
                     Yield: AsianPayTV, Ascendas REIT ; most REITs now look more attractive post correction
                     Property: CapitaLand, ChipEng Seng; en-bloc liquidity yet to surface
                     Banyan Tree: large pipeline of hotel-management contracts for the next several years
                     Banking: switch from DBS to OCBC; SGX for pick-up in liquidity and volatility
                     Consumer: Laggard beneficiary – Sheng Siong, Dairy Farm, Thai Beverage, F&N
                     Transport: Comfort DelGro as non-taxi businesses pick up pace

Phillip Securities Research Pte Ltd (A member of PhillipCapital) Co. Reg. No. 198803136N © PhillipCapital 2017. All Rights Reserved. For internal circulation only.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation.
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                                                                                                                                                                                             28
Ask Questions!
           Archived Webinar videos can be accessed at:
                                                                                                                                                                                                                            Analysts
           https://www.stocksbnb.com/webinars/                                                                                                                                                            Paul Chew, Head of Research
                                                                                                                                                                                                                    Pei Sai Teng, Macro
                                                                                                                                                                                                          Jeremy Ng, Technical Analysis
                                                                                                                                                                                                    Soh Lin Sin, Consumer | Healthcare
                                                                                                                                                                                             Richard Leow, Transport | REITs (Industrial)
                                                                                                                                                              Dehong Tan, REITs (Commercial, Retail, Healthcare) | Property
                                                                                                                                                                Tara Wong, REITs (Commercial, Retail, Healthcare) | Property
                                                                                                                                                                                                                Ho Kang Wei, US Equity
                                                                                                                                                                                                  Chen Guangzhi, Oil and Gas | Energy
                                                                                                                                                                                                         Alvin Chia, Research Associate

                                                                                                                                                                                         By Phillip Securities Research
                                                                                                                                                                                                  Mohamed Amiruddin, Operations Exec

                                              Have an opinion or questions on our reports?
                                              Post them in the comment section of the report!

Phillip Securities Research Pte Ltd (A member of PhillipCapital) Co. Reg. No. 198803136N © PhillipCapital 2017. All Rights Reserved. For internal circulation only.
Disclaimer: The information contained in this document is intended only for use during the presentation and should not be disseminated or distributed to parties outside the presentation.
Phillip Securities accepts no liability whatsoever with respect to the use of this document or its contents.
                                                                                                                                                                                                                                            29
Disclaimer

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Phillip Securities Research Pte Ltd (A member of PhillipCapital) Co. Reg. No. 198803136N © PhillipCapital 2017. All Rights Reserved. For internal circulation only.
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                                                                                                                                                                                             30
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