Daily Morning Note – 12 February 2018


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Phillip Singapore Monthly – February 2018: No bond rout
Analyst: Paul Chew
– STI started the year with 3.9% surge in January
– We maintain Overweight on banks, property, electronics and consumer.
– In January, we initiated coverage on China Sunsine (beneficiary of supply
containment in China due to environmental concerns) and Y Ventures (growth
propelled by monetizing of its data analytics through e-commerce)
– In our inaugural Phillip Absolute 10 Model portfolio, it was up 4.9% in January.
It outperformed the STI by 1% point this month

Technical Analysis: The Phillip 20 Portfolio – January Monthly Review
Analyst: Jeremy Ng
– New Entries: YZJ Shipbldg SGD and Sunningdale Tech
– Take Profit: –
– Stop loss: Singapore O&G
– Total return since May 17 to January 18 is +8.29%
– All eyes on the 3354 – 3341 support area for the uptrend to remain intact for
the STI

DBS Group Holdings Ltd – Stellar Performance Across All Key Parameters
Recommendation: Buy (Maintain), Last Traded Price: S$26.60
Target Price: S$29.30, Analyst: Jeremy Teong
– 4Q17 PATMI of S$1.2bn was in line with our estimates.
– Loan volume, NIMs, loans quality and Non-II results were stellar.
– Strong momentum in Consumer and SME banking segment in Hong Kong and
– Strong momentum in WM and IB fee income.
– Maintain BUY rating with unchanged target price of S$29.30

Singapore Banking Monthly – SIBOR Surrendered December Gains in January
Recommendation: Accumulate (Maintain), Analyst: Jeremy Teong
– Singapore December domestic loans growth was up 5.6% YoY. Demand was
driven by real estate related business loans.
– Hong Kong November domestic loans growth was 15.5% YoY.
– SIBOR surrendered December gains in January, but channel checks reveal that
SIBOR pegged mortgage rates have risen.
– Maintain Accumulate for the Singapore Banking Sector.

Singapore Banking Monthly – SIBOR Surrendered December Gains in January
Recommendation: Accumulate (Maintain), Analyst: Jeremy Teong
– Singapore December domestic loans growth was up 5.6% YoY. Demand was
driven by real estate related business loans.
– Hong Kong November domestic loans growth was 15.5% YoY.
– SIBOR surrendered December gains in January, but channel checks reveal that
SIBOR pegged mortgage rates have risen.
– Maintain Accumulate for the Singapore Banking Sector.

800 Super Holdings Ltd – Lower PATMI, but within expectation
Recommendation: Accumulate (Maintain), Last Close Price: $1.14
Target Price: $1.35, Analyst: Richard Leow
– 2Q FY18 revenue 5.4% lower than expected, PATMI in line with our estimate
– 1H FY18 revenue and PATMI met 48% and 46% respectively, of our full year
– Negative surprise of absence of interim dividend (1H17: 1 cent)
– Maintain Accumulate; lower target price of $1.35 on cost pressures

Nam Lee Pressed Metal Industries – Strong start to the year, deep-value yield-play
Recommendation: Buy (Maintain), Last Close Price: $0.38
Target Price: $0.56 (unchanged), Analyst: Richard Leow
– 1Q18 revenue and PATMI both met 33% of our full year estimate
– Strong start driven by aluminium industrial product
– Keeping our full year estimate intact, due to historically volatile quarters
– Maintain Buy; unchanged target price of $0.56

Singapore Industrial REITs – Tailwind of tapering new supply this year
Analyst: Richard Leow
– Maintain Equal Weight view on Industrial REITs sub-sector
– Sector occupancy ticked up QoQ, driven by take-up of newly completed warehouse space. However, sector occupancy was lower YoY.
– Rental Index across the board yet to bottom, but Business Park rental made new high
– Tapering of new supply in 2018 leads us to believe rents to bottom by end of this year


Singapore Exchange Limited – A “Joint Press Release for Licensing of Indian Indices and Market Data of the securities listed or traded in India” by National Stock Exchange of India (NSE), Bombay Stock Exchange (BSE) and Metropolitan Stock Exchange of India (MSEI) (“the Indian Exchanges”) was issued on 9 February 2018, regarding the commercial licensing of their indices and market data with a number of foreign exchanges and other business partners. SGX wishes to assure market participants that we will take all measures to maintain orderly trading and clearing of SGX India equity derivatives for our global clients. The market for our entire India suite of products including Nifty will open and operate per normal on Monday, 12 February 2018. Our licence agreement with NSE will ensure the continuity of listing and trading our Nifty suite of derivative products till August 2018 at a minimum.

Spackman Entertainment Group announced that that upcoming Korean fantasy film, NOW I WILL MEET YOU, starring leading actors Son Ye-Jin and So Ji Sub will be released on 14 March 2018.

SIA Engineering Company Limited has signed a Memorandum of Understanding with CaseBank Technologies – a division of Aircraft Technical Publishers and the leading provider of integrated diagnostic and troubleshooting software solutions – to collaborate in the field of data analytics.

Kitchen Culture Holdings Ltd secured two contracts for projects in Singapore collectively worth S$6.1 million.

China Jinjiang Environment Holding Company Limited announced that its wholly-owned subsidiary Sunrise Development Group Limited has sold a 11.0% equity interest in Yueyang Jinneng Environment Green Energy Co Ltd to Yueyang Gaoneng Shidai Environment Technology Co Ltd, an unrelated third party, for an aggregate consideration of approximately RMB11.2 million (equivalent to approximately S$2.4 million).

Best World International Limited has been accepted as a member of the DSA of UAE. The DSA UAE is a member of the World Federation of Direct Selling associations, a highly regarded organisation intended to provide education, advocacy, and oversight in the direct selling industry.

Source: SGX Masnet, PSR

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

Read the research report(s), available through the link(s) above, for complete information including important disclosures

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