Regional

Morning Pack

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Refer to important disclosures at the end of each report

REGIONAL MORNING PACK 15 Jan 2019

Top Ideas of the day

China Pharmaceutical Distribution Sector
New centralised drugs procurement arrangement to trigger re-rating

Mark KONG

• New centralised procurement arrangement in Dec 2018 can halve account receivables, debt and interest
cost to trigger a sector re-rating
• Despite ASP cut, leading distributors will still achieve decent sales growth on market share gain and
launch of new businesses
• Trading at >1SD below its 5-year average PE, the sector’s valuation is attractive. BUY the largest player
Sinopharm (1099 HK) and undervalued regional leader Liuzhou Pharm (603368 CH)
Read more ...

Singapore Telecom Sector

How competitive will TPG be?

Sachin MITTAL

• TPG has launched mobile trials with free plans; only few handsets support its voice calls; decent network
outdoors but limited indoor coverage
• Netlink NBN is our top pick in the sector with 6.6% yield. We also like Singtel and StarHub for ~6% yield
each and potential exit of TPG in 3-4 years
• The key risk for Singtel will be further rise in Bharti’s losses in FY20. The key risk for StarHub will be TPG
striking a roaming deal with an existing operator
Read more…
 Summary

The Big Picture

DBS Economics & Strategy: Chart of the Week: China’s plunging imports and rising trade surpluses
DBS Economics & Strategy: Top-10 investment strategies for 2019: #4 Support for high grade credit,
especially BBB
DBS Economics & Strategy: SGS: Slim pickings

Industry Focus
HK Property Monthly Chart Book: Local developers dominated the land market

Stocks

Singapore
CapitaLand: Revitalised to take on the future world

Thailand
TISCO Financial Group: Results beat expectations

The Big Picture

DBS Economics & Strategy
Chart of the Week: China’s plunging imports and rising trade surpluses
Duncan TAN

• We expect Bank Indonesia to keep policy rates unchanged at this week’s decision.
• Singapore’s non-oil domestic exports are expected to rebound to 2.1% YoY in December.
• Price pressures continue to ebb in India with December’s CPI expected to print 2.1% YoY.
Read more

DBS Economics & Strategy

Top-10 investment strategies for 2019: #4 Support for high grade credit, especially BBB
Neel GOPALAKRISHNAN

• Investing in BBB credits is a key part of our broader recommendation to position defensively in Asian
credit, given expectation of volatile markets.
• While performance so far in 2019 has taken some sheen off HG valuations, it still is our preferred trade
with potential opportunities in the primary market.
• Concerns around credit quality are fairly limited among BBB credits with the key risk to the trade being an
unexpected spike in treasury yields.
Read more…
DBS Economics & Strategy
SGS: Slim pickings
Eugene LEOW

• Short-term SGD rates are likely to climb modestly higher

• Gauging the policy actions of the Fed and the Monetary Authority of Singapore will be key
• Longer-term SGD rates are unlikely to revisit the highs seen in 2018. We like receiving SGD rates on
selloffs
• Better levels are required before receiving longer-tenor SGD rates vs paying USD rates
Read more…

Industry Focus
HK Property Monthly Chart Book
Local developers dominated the land market
Jeff YAU / Ian CHUI / Jason LAM

• Kai Tak is the key source of land supply

• MTRC stepping up project launches
• Local developers dominated the land market
Read more ...

Stocks to watch
Singapore
CapitaLand (CAPL SP): BUY
Market Cap: US$10,053m | Average Daily Value: US$15.12m
Last Traded Price: S$3.27; Price Target: S$3.62 (Upside 10.8%)
Derek TAN / Rachel TAN
Revitalised to take on the future world
• CapitaLand to buy over Temasek’s stake in Ascendas-Singbridge Group for S$11bn
• The target company is an established business solutions provider with core expertise in the business park
and logistics space with an AUM of S$23.6bn
• Complementary exposures with synergies and value to be extracted over time.
• While proforma gearing hits a high of 0.72x, there are plans to realise value through ongoing capital
recycling and stronger cashflows to reduce gearing towards 0.6x.
Read more...
Thailand
TISCO Financial Group (TISCO TB): BUY
Market Cap: US$2,031m | Average Daily Value: US$10.61m
Last Traded Price: Bt81.00; Price Target: Bt102.00 (Upside 25.9%)

Thaninee SATIRAREUNGCHAI

Results beat expectations

• 4Q18 profit came in at Bt1.7bn (+13% y-o-y; -5% q-o-q), taking FY18 earnings to Bt7.0bn (+15% y-o-y)
• Loan portfolio contracted by 4.3%, due mainly to sale of personal loan and credit card portfolios
• NPL ratio increased from changes in loan classification
• Maintain BUY with TP of Bt102
Read more…
Market Data Key Indices
Earnings Gth (%) PE (x) Closed % chg
18F 19F 18F 19F as of Vs YTD QTD
Singapore 7.7 7.3 14.4 13.4 Indices 14 Jan 19 Previous (%) (%)
HK HSI 20.6 9.1 10.0 9.2 Asia
HK HSCCI (Red) 55.1 12.8 9.0 8.0 PCOMP 8,024 1.5 7.5 7.5
HK HSCEI (H) 7.1 9.5 7.5 6.9 STI 3,173 (0.8) 3.4 3.4
CSI300 31.0 15.1 9.6 8.3 JCI Index 6,336 (0.4) 2.3 2.3
SH Comp 38.9 13.0 9.3 8.3 MXFEJ index 567 (1.3) 1.8 1.8
SZ Comp 76.6 20.2 12.3 10.3 Hang Seng 26,298 (1.4) 1.8 1.8
Thailand 7.5 5.7 14.9 14.1 Nikkei 225 20,360 1.0 1.7 1.7
Indonesia 8.7 13.6 17.2 15.0 Shanghai A 2,536 (0.7) 1.7 1.7
HSCEI Index 10,292 (1.6) 1.7 1.7
Source: DBS Bank, DBS Vickers, Bloomberg Finance L.P. HSCCI Index 4,230 (1.0) 1.5 1.5
SET 1,583 (0.9) 1.2 1.2
KOSPI 2,065 (0.5) 1.2 1.2
Taiex 9,708 (0.5) (0.2) (0.2)
BSE Sensex 35,854 (0.4) (0.6) (0.6)
KLCI 1,676 (0.4) (0.9) (0.9)
U.S./Others
Dow Jones 23,910 (0.4) 2.5 2.5
S&P 2,583 (0.5) 3.0 3.0
NASDAQ 6,906 (0.9) 4.1 4.1
FTSE 100 6,855 (0.9) 1.9 1.9
DAX Index 10,856 (0.3) 2.8 2.8

Commodity Indicators
Commodities Latest Previous YTD % chng
Closing Closing 7.6% Nickel Spot
-3.0% Coal Spot
Nickel Spot USD/mt 11,414 11,194
4.2% Tin
Coal Spot USD/mt 98 101
0.0% Steel (weekly)
Tin USD/mt 20,300 20,140
-0.4% Copper
Steel (weekly) RMB/mt 490 - Gold Spot
0.7%
Copper USD/lb 5,942 5,930
Gold Spot USD/t. oz 1,292 1,292 2.3% Soybean Oil Spot
1.2%
Soybean Oil Spot USD/pound 28 28 Soybean Spot
6.0%
Soybean Spot USD/bushel 9 9 2.1%
Sugar #11

Sugar #11 USD/lb 13 13 Rice

1.8% Wheat Spot
Rice USD/cwt 11 11
4.5% TSL Crude Palm Oil
Wheat Spot USD/bushel 5 5
3.0% Palm Oil Spot (FOB Msia)
TSL Crude Palm Oil USD/mt 523 520
10.0% Crude Oil Brent Spot
Palm Oil Spot (FOB Msia) RM/mt 2,011 2,024
0.9% Corn Spot
Crude Oil Brent Spot USD/barrel 58 60
-10% 0% 10% 20%
Corn Spot USD/bushel 4 4
YTD % chng
Credit Spreads -25% US IG CDS
US IG CDS 19 18
-30% -25% -20% -15% -10% -5% 0%

Source: Bloomberg Finance L.P., DBS Bank

 Regional
Regional
High Conviction Picks
High Conviction Picks

Refer to important disclosures at the end of this report

DBS Group Research . Equity 15 Jan 2019

High Conviction Stock Picks

12-mth % Chg 3mths
Price Target Total since Date of Avg
14 Jan 19 Price Return % Chg Entry Entry Mcap Daily T/O
Company Exch Sector (LCY) (LCY) (%) -1w Date to List US$m US$m
Big Caps (>US$2bn)
Ascendas REIT AREIT SP SG REITS 2.680 2.95 16 1.5 -1 13-Jul-18 6,160 20.4
Genting Spore GENS SP SG Consumer Services 1.030 1.55 54 1.0 18 3-Jan-17 9,167 26.1
SATS Ltd SATS SP SG Industrials 4.880 5.60 18 4.1 -5 13-Jul-18 4,018 6.2
ST Engineering STE SP SG Industrials 3.580 4.15 20 2.0 7 22-Jun-18 8,253 9.0
AIA Group Ltd 1299 HK HK Financials 67.100 87.00 32 6.0 -0 15-Jan-18 103,328 179.8
China Railway Construction 1186 HK HK Technology 11.120 12.90 19 0.2 16 26-Oct-18 19,254 17.4
China Vanke 2202 HK HK Real Estate 28.000 35.40 30 0.5 4 22-Nov-18 39,412 26.8
China Mengniu 2319 HK HK Consumer Goods 24.750 28.70 17 7.8 1 14-Dec-18 12,395 28.3
Want Want China * 151 HK HK Consumer Goods 6.050 6.40 9 3.4 6 4-Jan-19 9,604 10.6
Hong Leong Bank HLBK MK MY Financials 20.740 23.15 14 0.7 11 12-Mar-18 10,345 5.7
Public Bank PBK MK MY Financials 24.700 28.20 17 0.0 -1 28-May-18 23,382 24.5
Airports of Thailand AOT TB TH Consumer Services 68.250 75.00 11 6.2 -4 11-Apr-18 30,545 48.4
CP ALL CPALL TB TH Consumer Services 74.500 83.00 13 2.1 -15 11-Apr-18 20,966 63.8
Indorama Ventures IVL TB TH Basic Material 48.000 82.00 74 (11.5) -14 11-Apr-18 8,443 31.5
Source: Bloomberg Finance L.P, DBS Bank, DBS Vickers

* Target Price under review

Company
Big Caps (>US$2bn) Reasons for Picks / Potential Catalysts
Ascendas REIT • Improved portfolio metrics with firepower to grow; manager targets to deepen presence in core markets
• Exploring opportunities in other developed markets in the USA and Europe which offer attractive returns with similar risk profiles
• Attractive yields north of 6pct with upside from acquisitions

Genting Singapore • VIP volumes still soft but win rate was better than expected
• With bad debts under control, GENS guiding that is now focused on selectively growing its VIP business

SATS • Changi’s air and passenger traffic growth of +5% y-o-y YTD, and cargo growth of 4% y-oy YTD will see continued support for earnings growth
in FY19F
• Positive drivers stem from 1) passenger and air traffic growth at Changi Terminal 4; 2) automation and staff productivity driving modest cost
increase and better margins in the next few years; 3) the development of a flight kitchen in Turkey; and 4) the opening of Terminal 5
• Stock offers dividend yield of 3.5%

ST Engineering • STE should be back on growth trajectory in FY18; orderbook remains at near peak level at S$13.4bn
• Aerospace segment rebounding, with margins improving this year on stronger engine MRO demand
• Potential near-term catalysts from award of some large contracts in the US that STE is vying for
• Improved long-term visibility from STE’s target to more than double smart city revenues by 2022 and grow other segment revenues at 2-3x the
global GDP growth rate

AIA Group • Excluding HK's retail-IFA impact in 1H17, underlying VONB growth (+24% y-o-y) was strong in 1H18, largely in line
• Management preparing ahead of potential geographical expansion in China
• Resuming growth momentum in Singapore and Thailand after two years of contraction
China Railway • Expect infrastructure FAI to improve on better liquidity after four rounds of RRR cuts.
Construction • The PPP project market revival is beneficiary to the company, especially its interest in the EPC segment.
• CRCC has a huge order backlog of Rmb2.6tr on hand, after winning some Rmb890bn of new contracts in 9M18.

China Vanke • Distressed PE 1st division below mean since listing and an attractive dividend yield.
• Well-equipped for future M&A and land acquisition opportunities
• Usually outperform during market downturn
• Continued consolidation of its new businesses to pave way for new earnings drivers ahead.

China Mengniu • Second largest dairy player in China

• Solid growth driven by core categories (UHT yogurt, low-temperature yogurt), and recoveries in China Modern Dairy and Yashili
• Expect earnings CAGR to exceed 18% in FY18-20F

Want Want China • Improving cost trends to drive margin expansion

Holdings Ltd • Encouraging signs of expansion into new channels
• Margin expansion not yet in price, attractively valued
Regional
High Conviction Picks

Company
Big Caps (>US$2bn) Reasons for Picks / Potential Catalysts

Hong Leong Bank • HLB is conservative yet solid bank, carrying financial metric next to best after Public Bank. Apart from being able to maintain NIM trends amid
challenging loan growth, HLB’s asset quality and capital indicators are robust.
• HLB’s additional strength vs peers lies in its low loan-to-deposit ratio (albeit a naive indicator), but it implies that should the bank decide to
loosen its grip on this liquidity stance, there would be further ample upside to NIM, earnings and ROE.
• It’s associate company, Bank of Chengdu (BOCD) has finally listed its shares on the Shanghai Stock Exchange. Post-IPO, HLB’s stake in BOCD
was marginally diluted. We continue to expect positive prospects on BOCD’s contribution to HLB’s pre-tax profit. Separately, HLB and BOCD
will be divesting it’s stake in a joint-venture company (Sichuan Jincheng Consumer Finance Ltd Co). The sale is expected to be completed by
Jun-2018. Proceeds from this divestment would be recognised as a one-off gain in FYJun18.

Public Bank • Solid as a rock. We believe PBK will continue to deliver stellar earnings in 2018 with a possible NIM surprise. Loan growth may lag until auto
loans pick up in 2H18.
• Stellar asset quality and efficiency. PBK’s ability to maintain solid asset quality indicators (even post-MFRS9), and its best-in-class cost-to-income
ratio coupled with efficient capital management should keep valuations ahead of peers.
• Maintain BUY, outperformance to sustain. Our RM26.90 TP is based on the Gordon Growth Model (15% ROE, 9% cost of equity, 4% long
term growth) equivalent to 2.5x FY18 BV.
Airports of Thailand • AOT is a direct play for Thailand’s tourism industry.
• Passenger traffic growth is expected to accelerate. International tourist arrivals in 2M18 have been strong, growing by 15%.
• More positive catalysts are awaiting such as upcoming new biddings of duty-free concessions, the emergence of managing additional airports,
and earnings upside potential from airport city projects.

CP ALL • CPALL will benefit from the recovery of domestic consumption and rising purchasing power as it sells mainly consumer products.
• This would further support SSSG in both CVS and cash-and-carry businesses.
• CPALL still targets to open at least 700 7-Eleven stores p.a.
• Despite its plans to add new stores, the spotlight remains on lifting margins by increasing the mix of high-margin products (health and beauty)
and controlling expenses.
• FY18F profit is projected to rise 18.1% y-o-y to Bt23bn.
Indorama Ventures • Strong earnings growth of 30% in 2018F to be driven by sales volume growth from its acquisition and higher contribution from HVA products
• Increase in EBITDA/ton in 2018 and beyond, thanks to the wider spread of PET given the global PET industry rebalancing, antidumping
investigation of PET imports in the US and Canada and import ban on waste plastic in China effective from Jan 2018
• Several acquisitions of HVA products in 2016 to date, which has enhanced its market positioning in specialty chemical markets would be the
key factor in stabilising IVL’s core EBITDA/ton in the longer term given its steady margins
Regional
High Conviction Picks

12-mth % Chg 3mths

Price Target Total % since Date of Avg
14 Jan 19 Price Return Chg Entry Entry Mcap Daily T/O
Company Exch Sector (LCY) (LCY) (%) -1w Date to List US$m US$m

Small & Mid Caps (<US$2bn)

China Everbright Greentech 1257 HK HK industrials 5.900 7.50 31 1.7 0 29-Nov-18 1,554 1.1
HKBN 1310 HK HK Telecommunications 11.580 15.60 41 (5.1) -6 14-Sep-18 1,485 2.5
SUNeVision 1686 HK HK Technology 4.690 7.50 63 0.0 -11 14-Sep-18 1,391 0.4
Aeon Thana Sinsap (Thailand) AEONTS TB TH Banks 173.500 250.00 47 (7.2) 2 11-Apr-18 1,359 2.1
Kiatnakin Bank KKP TB TH Banks 67.250 97.00 51 (1.1) -4 26-Oct-18 1,784 5.6
Tisco Financial Group TISCO TB TH Banks 81.000 102.00 32 0.0 2 16-Nov-18 2,032 9.4

Source: Bloomberg Finance L.P, DBS Bank, DBS Vickers

Company
Small & Mid Caps (<US$2bn) Reasons for Picks / Potential Catalysts
China Everbright Greentech • Enjoy one of the highest earnings growth of 25-27% with the lowest PEG of 0.3x within the environmental protection sector
• Strategically positioned in biomass power, hazardous waste treatment and soil remediation segments which have strong market
demand and relatively less intense competition
• Strong balance sheet with low net debt-equity ratio of c.40% and the least accounts receivable risk

HKBN • Expect higher residential broadband ARPU upside as low-ARPU subs contracted during the price war two years ago are due for
renewal at higher prices in 2018
• Expect dividend per share to grow at a CAGR of 20% from FY8/18-FY8/21
• Release of new co-ownership plan with financial targets could be a near term catalyst

SUNeVision • Robust data centre demand driven by multi-media content and cloud segment;
• Beneficiary of data centre supply shortage in HK:
• Earnings growth to accelerate, driven by higher utilisation of newly launched data centre and improving margins

Aeon Thana Sinsap (Thailand) • We like AEONTS for its strong position in the retail finance industry and solid balance sheet. It is one of the largest non-bank players in
Thailand and commands the largest share of the personal loan market
• We believe a strong recovery in retail spending will be a key re-rating catalyst for the stock, and the upcoming general election
(expected in Feb 2019) should be a catalyst for retail spending in late 2018 – early 2019
• We estimate AEONTS’s loan growth and earnings growth at 12.5%/11.5% and 21.9%/12.1%, respectively, in FY18F/FY19F

Kiatnakin Bank • We like KKP for its continual operating improvements in both its commercial banking and capital market businesses
• KKP is ready to grow with the economy, given its strong capital structure and recently developed internal models that allow it to
capture new businesses and new clientele
• We expect FY18/19F dividend yield to remain high at 6-7% p.a., driven by decent earnings growth, i.e. 8.1%/6.2% in FY18/19F

Tisco Financial Group • After divesting its personal loan portfolio and credit card business that were acquired from SCBT, to Citibank N.A. (Bangkok Branch),
TISCO would not have to manage those businesses that it does not intend to expand. This will lead to lower operating costs and credit
costs
• However, TISCO can upsell its financial products and expand its securities business to the mid-range to high-end retail customers,
acquired from SCBT
• We expect FY18/19F dividend yield to remain high at 7-8% p.a., driven by decent earnings growth, i.e. 17%/10% in FY18/19F
DBS Bank Ltd recommendations are based an Absolute Total Return* Rating system, defined as follows:
STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)
BUY (>15% total return over the next 12 months for small caps, >10% for large caps)
HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)
FULLY VALUED (negative total return i.e. > -10% over the next 12 months)
SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)
Share price appreciation + dividends

Completed Date: 15 Jan 2019 08:09:12 (SGT)

Dissemination Date: 15 Jan 2019 08:52:52 (SGT)

Sources for all charts and tables are DBS Bank unless otherwise specified

GENERAL DISCLOSURE/DISCLAIMER
This report is prepared by DBS Bank. This report is solely intended for the clients of DBS Bank Ltd, its respective connected and associated
corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii)
redistributed without the prior written consent of DBS Bank.

The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to
DBS Bank Ltd, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents
(collectively, the “DBS Group”) have not conducted due diligence on any of the companies, verified any information or sources or taken into
account any other factors which we may consider to be relevant or appropriate in preparing the research. Accordingly, we do not make any
representation or warranty as to the accuracy, completeness or correctness of the research set out in this report. Opinions expressed are
subject to change without notice. This research is prepared for general circulation. Any recommendation contained in this document does not
have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the
information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate
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with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this
document. The DBS Group, may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to
perform broking, investment banking and other banking services for these companies.

Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there
can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk
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The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and
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which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from
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BE RELIED UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that:

(a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and
(b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk
assessments stated therein.

Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets.
Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies)
mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to
the commodity referred to in this report.

DBSVUSA, a US-registered broker-dealer, does not have its own investment banking or research department, has not participated in any public
offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not
engage in market-making.

ANALYST CERTIFICATION
The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the
companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her
compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The research analyst
(s) primarily responsible for the content of this research report, in part or in whole, certifies that he or his associate 1 does not serve as an officer
0F

of the issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of
the real estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for
the management of the issuer or the new listing applicant) and the research analyst(s) primarily responsible for the content of this research report
or his associate does not have financial interests 2 in relation to an issuer or a new listing applicant that the analyst reviews. DBS Group has
1F

procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of
research reports. The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment
banking function of the DBS Group and procedures are in place to ensure that confidential information held by either the research or investment
banking function is handled appropriately. There is no direct link of DBS Group's compensation to any specific investment banking function of
the DBS Group.

COMPANY-SPECIFIC / REGULATORY DISCLOSURES

1. DBS Bank Ltd, DBS HK, DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”) or their subsidiaries and/or other affiliates have proprietary
positions in Ascendas REIT, Genting Singapore, SATS, ST Engineering, AIA Group, China Railway Construction, China Vanke, China
Mengniu, Airports of Thailand, CP ALL, Indorama Ventures, HKBN Ltd, Kiatnakin Bank, TISCO Financial Group, recommended in this report
as of 31 Dec 2018.

2. Neither DBS Bank Ltd nor DBS HK market makes in equity securities of the issuer(s) or company(ies) mentioned in this Research Report.

3. DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates have a net long position exceeding 0.5% of the total issued share
capital in Ascendas REIT, recommended in this report as of 31 Dec 2018.

4. DBS Bank Ltd, DBS HK, DBSVS, DBSVUSA, their subsidiaries and/or other affiliates beneficially own a total of 1% of any class of common
equity securities of Ascendas REIT, as of 31 Dec 2018.

Compensation for investment banking services:

5. DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12
months for investment banking services from Ascendas REIT, China Mengniu as of 31 Dec 2018.

6. DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of
securities for Ascendas REIT, China Mengniu, in the past 12 months, as of 31 Dec 2018

7. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a
manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain
further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this
document should contact DBSVUSA exclusively.

1 An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of
which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person
accustomed or obliged to act in accordance with the directions or instructions of the analyst.
2 Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an issuer or
a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This
term does not include commercial lending conducted at arm's length, or investments in any collective investment scheme other than an issuer or
new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.
Directorship/trustee interests:
8. Euleen Goh Yiu Kiang, a member of DBS Group Holdings Board of Directors, is a Non-Exec Director / Chairman of SATS as of 31 Dec 2018.
9. Lim Sim Seng, a member of DBS Group Executive Committee, is a Independent non-executive director of ST Engineering as of 7 Jan 2019.

Disclosure of previous investment recommendation produced:

10. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates may have published other
investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12
months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by
DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12 months.

RESTRICTIONS ON DISTRIBUTION
General This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of
or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would
be contrary to law or regulation.

Australia This report is being distributed in Australia by DBS Bank Ltd, DBSVS or DBSV HK. DBS Bank Ltd holds Australian Financial
Services Licence no. 475946.

DBSVS and DBSV HK are exempted from the requirement to hold an Australian Financial Services Licence under the
Corporation Act 2001 (“CA”) in respect of financial services provided to the recipients. Both DBS Bank Ltd and DBSVS are
regulated by the Monetary Authority of Singapore under the laws of Singapore, and DBSV HK is regulated by the Hong
Kong Securities and Futures Commission under the laws of Hong Kong, which differ from Australian laws.

Distribution of this report is intended only for “wholesale investors” within the meaning of the CA.

Hong Kong This report has been prepared by a person(s) who is not licensed by the Hong Kong Securities and Futures Commission to
carry on the regulated activity of advising on securities in Hong Kong pursuant to the Securities and Futures Ordinance
(Chapter 571 of the Laws of Hong Kong). This report is being distributed in Hong Kong and is attributable to DBS Bank
(Hong Kong) Limited, a registered institution registered with the Hong Kong Securities and Futures Commission to carry
on the regulated activity of advising on securities pursuant to the Securities and Futures Ordinance (Chapter 571 of the
Laws of Hong Kong).

For any query regarding the materials herein, please contact Carol Wu (Reg No. 8283) at [email protected]

Indonesia This report is being distributed in Indonesia by PT DBS Vickers Sekuritas Indonesia.

Malaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from
ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this
report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised
that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective
connected and associated corporations, affiliates, their directors, officers, employees, agents and parties related or
associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and
may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject
companies. They may also have received compensation and/or seek to obtain compensation for broking, investment
banking/corporate advisory and other services from the subject companies.

Wong Ming Tek, Executive Director, ADBSR

Singapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No.
198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the
Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign
entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial
Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert
Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such
persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters
arising from, or in connection with the report.

Thailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd.
 United This report is produced by DBS Bank Ltd which is regulated by the Monetary Authority of Singapore.
Kingdom
This report is disseminated in the United Kingdom by DBS Vickers Securities (UK) Ltd, ("DBSVUK"). DBSVUK is authorised
and regulated by the Financial Conduct Authority in the United Kingdom.

In respect of the United Kingdom, this report is solely intended for the clients of DBSVUK, its respective connected and
associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in
any form or by any means or (ii) redistributed without the prior written consent of DBSVUK. This communication is
directed at persons having professional experience in matters relating to investments. Any investment activity following
from this communication will only be engaged in with such persons. Persons who do not have professional experience in
matters relating to investments should not rely on this communication.

Dubai This research report is being distributed by DBS Bank Ltd., (DIFC Branch) having its office at units 608 - 610, 6th Floor,
International Gate Precinct Building 5, PO Box 506538, DIFC, Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated
Financial by The Dubai Financial Services Authority. This research report is intended only for professional clients (as defined in the
Centre DFSA rulebook) and no other person may act upon it.

United Arab This report is provided by DBS Bank Ltd (Company Regn. No. 196800306E) which is an Exempt Financial Adviser as
Emirates defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. This report is for information
purposes only and should not be relied upon or acted on by the recipient or considered as a solicitation or inducement to
buy or sell any financial product. It does not constitute a personal recommendation or take into account the particular
investment objectives, financial situation, or needs of individual clients. You should contact your relationship manager or
investment adviser if you need advice on the merits of buying, selling or holding a particular investment. You should note
that the information in this report may be out of date and it is not represented or warranted to be accurate, timely or
complete. This report or any portion thereof may not be reprinted, sold or redistributed without our written consent.

United States This report was prepared by DBS Bank Ltd. DBSVUSA did not participate in its preparation. The research analyst(s)
named on this report are not registered as research analysts with FINRA and are not associated persons of DBSVUSA. The
research analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst compensation, communications with a
subject company, public appearances and trading securities held by a research analyst. This report is being distributed in
the United States by DBSVUSA, which accepts responsibility for its contents. This report may only be distributed to Major
U.S. Institutional Investors (as defined in SEC Rule 15a-6) and to such other institutional investors and qualified persons as
DBSVUSA may authorize. Any U.S. person receiving this report who wishes to effect transactions in any securities
referred to herein should contact DBSVUSA directly and not its affiliate.

Other In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified,
jurisdictions professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

DBS Regional Research Offices

HONG KONG MALAYSIA SINGAPORE
DBS (Hong Kong) Ltd AllianceDBS Research Sdn Bhd DBS Bank Ltd
Contact: Carol Wu Contact: Wong Ming Tek (128540 U) Contact: Janice Chua
13th Floor One Island East, 19th Floor, Menara Multi-Purpose, 12 Marina Boulevard,
18 Westlands Road, Capital Square, Marina Bay Financial Centre Tower 3
Quarry Bay, Hong Kong 8 Jalan Munshi Abdullah 50100 Singapore 018982
Tel: 852 3668 4181 Kuala Lumpur, Malaysia. Tel: 65 6878 8888
Tel.: 603 2604 3333 Fax: 65 65353 418
Fax: 852 2521 1812
Fax: 603 2604 3921 e-mail: [email protected]
e-mail: [email protected]
e-mail: [email protected] Company Regn. No. 196800306E

INDONESIA THAILAND
PT DBS Vickers Sekuritas (Indonesia) DBS Vickers Securities (Thailand) Co Ltd
Contact: Maynard Priajaya Arif Contact: Chanpen Sirithanarattanakul
DBS Bank Tower 989 Siam Piwat Tower Building,
Ciputra World 1, 32/F 9th, 14th-15th Floor
Jl. Prof. Dr. Satrio Kav. 3-5 Rama 1 Road, Pathumwan,
Jakarta 12940, Indonesia Bangkok Thailand 10330
Tel: 62 21 3003 4900 Tel. 66 2 857 7831
Fax: 6221 3003 4943 Fax: 66 2 658 1269
e-mail: [email protected] e-mail: [email protected]
Company Regn. No 0105539127012
Securities and Exchange Commission, Thailand