Singapore Traders Spectrum

Wired Daily

DBS Group Research . Equity 09 November 2009

Today’s Focus US Indices Last Close Pts Chg % Chg

Dow Jones 10,023.42 17.46 0.17
S&P 1,069.30 2.67 0.25
NASDAQ 2,112.44 7.12 0.34
• Downside risk for residential property stocks – City Regional Indices
Developments, Allgreen, Wing Tai and Ho Bee ST Index 2,658.21 28.86 1.10
ST Small Cap 503.54 0.37 0.07
Hang Seng 21,829.72 350.64 1.63
There is no change in our technical view for the STI to HSCEI 13,017.20 211.94 1.66
consolidate further towards 2400 before the major rising trend HSCCI 4,052.79 65.13 1.63
KLCI 1,260.76 6.80 0.54
resumes.
SET 698.63 16.72 2.45
JCI 2,395.11 27.89 1.18
Residential property stocks started to lose their shine in PCOMP 2,931.47 -13.04 -0.44
September on news about the withdrawal of IAS and IOL, KOSPI 1,572.46 20.22 1.30
ahead of the YTD high for the STI in October. Technically, there TWSE 7,463.05 45.59 0.61
is further downside risk for residential property stocks such as Nikkei 9,789.35 71.91 0.74
City Developments (support $9.10, resistance $10.30), Allgreen
(support $0.97), Wing Tai (support $1.47-1.43, resistance Chartered (ADR) -S$ - 2.64 0.00 0.00
$1.72-1.77) and Ho Bee (support $1.22, resistance $1.40). Source: Bloomberg

STI Index Performance

SCI’s 3Q09 results were in line with expectation. Recurring net
Singapore
profits from both the Marine and Utilities business were steady Index

Total Market cap (US$bn) 413 3,800

in 3Q09. Outlook for the Utilities business in UK remains weak, Total Daily Vol (m shrs) 1,257 3,400

but is expected to stay profitable. Maintain BUY on SCI, target 12m ST Index High 2,740 3,000

price of S$4.02 (Prev. S$4.09) offers 23% potential price

STI
12m ST Index Low 1,455 2,600
100-Day MA

upside. 2,200

1,800

1,400

Bukit Sembawang Estates reported 2Q10 net profit of S$6.7m Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09

Source: Bloomberg
(+16% yoy, +379% qoq), below expectations. FY10F earnings
were reduced by 12% on expectation of slower revenue Stock Picks – Large Cap
recognition for Parc Mondrian. Bukit Sembawang presents Rec’n Price (S$) Target Price
long-term value, maintain BUY, TP unchanged at S$5.94. 6/11
Keppel Corp Fully Valued 8.09 7.09
CH Offshore’s 1Q10 results were in-line. Gross margins were SATS Buy 2.38 3.00
weaker as expected but operating cash flows remain strong. ST Engineering Buy 2.96 3.30
DBS Research believes downside to current share price is limited SMRT Buy 1.72 2.00
by its asset breakup value of its AHTS fleet, estimated at Stock Picks – Small Cap
S$0.67. Maintain BUY, TP: S$0.89.
Today’s Focus (Cont’d) Rec’n Price ($)
6/11
Target Price

Singapore Land’s results were in line with expectations, boosted Ascott Residence Trust Buy 1.06 1.25
by higher office and residential income. Large supply outlook CH Offshore Buy 0.68 0.89
continue to drag on the performance of office rents in the near Frasers Centrepoint Trust Buy 1.21 1.34
term. With the bulk of new office completions expected in Swiber Holdings Sell 0.87 0.73
2010, there appears to be little short-term catalyst to spur office Tat Hong Holdings Fully Valued 1.00 0.91
stocks at present. Maintain HOLD with a TP of $5.47 (Prev S$ Source: Bloomberg, DBS Vickers
5.01).

Trader’s Spectrum Team – 6533 9688 / 6398 7955 / 6398 7970

www.dbsvickers.com
Refer to important disclosures at the end of this report
 Singapore
Wired Daily

Today’s Focus (Cont’d)

Sim Lian posted a strong start to its FY10, with 1Q10
earnings of S$27.6m up 23% yoy and forming 40% of our
analyst’s FY10F forecast. Sim Lian saw a dramatic
improvement in its balance sheet as a result of such strong
earnings. Maintain HOLD, TP of S$0.49 (Prev S$ 0.52), with
land acquisition as its strongest catalyst.
SembCorp Marine’s subsidiary, PPL Shipyard, has exercised
its right to acquire the jackup rig, West Elara, from Seadrill,
for US$10.8m. The construction works at West Elara will
continue, and is targeted for completion in Sep 2010. SMM
indicates that there are ready buyers looking at purchasing
this newbuild jackup rig. DBS Research believes that this
acquisition has little impact on SMM’s balance sheet. SMM’s
cashflow is expected to improve with the West Elara
acquisition, which is already on balloon payment structure.
Acording to Minister Mentor Lee Kuan Yew, the Singapore
economy in the fourth quarter looks 'healthy' and may well
grow 3% next year. MM Lee also pointed out that Singapore
will not resume high economic growth for several years until
major economies in the world have recovered.
The government announced its land sales programme for the
first half of 2010 earlier than expected. The Confirmed List
comprises solely of residential sites, with 8 sites (including 2
Executive Condominium sites) to be pushed out to the
market, potentially yielding 2,925 units. The Reserve List will
have 18 sites with residential quantum of which 6 sites are
new. 2 new hotel sites on Reserve List were released, but no
new commercial sites introduced. This drives home the
message that the Singapore government intends to keep
private homes affordable.
The Baltic Dry Index posted a sixth weekly advance as rates
for smaller iron-ore transporters rose to the highest in more
than a year. Increases were led by rates for panamax-class
vessels that jumped 13% week, the highest since Sep 08.
The ships compete with larger capesizes for coal and iron-ore
cargoes and also carry grains.

Share Buy-Back
Company D.O.T. Buy/Sell No.of shares S$/shr
Novo Group Ltd 04-Nov-09 Share Buy-Back 1,500,000 0.1298
Novo Group Ltd 03-Nov-09 Share Buy-Back 3,500,000 0.1296
8Telecom Intl Holdings 29-Oct-09 Share Buy-Back 1,575,000 0.1522
8Telecom Intl Holdings 28-Oct-09 Share Buy-Back 950,000 0.1500
Chuan Hup Holdings 28-Oct-09 Share Buy-Back 786,000 0.3272
Chuan Hup Holdings 27-Oct-09 Share Buy-Back 480,000 0.3291
Source: SGX Masnet

Substantial Shareholders’ Transactions: 2 – 5 Nov 2009

Stock Transacted Substantial Shareholder/Director Buy/Sell/ Conv No of Price Per Share Before('000) %Issued Cap After('000) %Issued Cap
Date Shares('000) $ Before Change After Change

Medtecs Intl Corp 05-Nov-09 Clement Yang Ker-Cheng Buy 10714 0.13 8793 2.02 19507 4.49
Esmart Hldgs Ltd 05-Nov-09 De An Men Hldgs Sell 8000 na.00 37078 7.22 29078 5.67
Hongguo Intl Hldgs 03-Nov-09 UBS AG Sell 12978 na.00 42263 10.65 29285 7.38
Hongguo Intl Hldgs 03-Nov-09 JWM Capital LLC Sell 10000 na.00 27398 6.9 17398 4.38
Hongguo Intl Hldgs 03-Nov-09 John W. Moon Sell 10000 na.00 27398 6.9 17398 4.38
Hongguo Intl Hldgs 03-Nov-09 Moon Capital Master Fd Sell 7138 na.00 20040 5.05 12902 3.25
Hongguo Intl Hldgs 03-Nov-09 Moon Capital Mgt LP Sell 10000 na.00 27398 6.9 17398 4.38
Lantrovision (S) Ltd 03-Nov-09 Ang Ee Tiong Buy 12000 na.00 227793 10.98 239793 11.56
PSC Corp Ltd 03-Nov-09 Goi Seng Hui Buy 3673 na.00 62491 11.38 66164 12.05
Lizhong Wheel Grp 03-Nov-09 Li Zhong Investment ST 100000 na.00 150956 64.23 50956 21.68
Firstlink Inv Corp 03-Nov-09 Lee Yuen Wai Sell 500 0.06 1029 0.21 529 0.11
Singapore Exchange Ltd 02-Nov-09 Hsieh Fu Hua Buy 622 na.00 165 0.02 787 0.07
Tianjin Zhong Xin 02-Nov-09 Cheah Capital Mgt Ltd Buy 1111 na.00 7045 7.05 8156 8.16
Chip Eng Seng Corp 02-Nov-09 CLP Sell 6007 na.00 78311 11.87 72304 10.96
Chip Eng Seng Corp 02-Nov-09 CIG HK Sell 6007 na.00 78311 11.87 72304 10.96
Chip Eng Seng Corp 02-Nov-09 CIG LLC Sell 6007 na.00 78311 11.87 72304 10.96
Chip Eng Seng Corp 02-Nov-09 CEFL Sell 6007 na.00 78311 11.87 72304 10.96
Chip Eng Seng Corp 02-Nov-09 Citadel Kensington Sell 6007 na.00 78311 11.87 72304 10.96
Chip Eng Seng Corp 02-Nov-09 CHL Sell 6007 na.00 78311 11.87 72304 10.96
Chip Eng Seng Corp 02-Nov-09 CW Sell 6007 na.00 78311 11.87 72304 10.96

Source: Business Times; SA: Share Allotment; ST: Share Transfer, B/R: Bonus/Rights Issue; OE: Option Exercise; PL: Placement Shares

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Wired Daily

Diary November 2009

Mon Tues Wed Thu Fri
2 3 4 5 6
Allgreen Properties 3Q09 ARA Asset Mgt 3Q09 Elec & Eltek 3Q09 China Merchants 3Q09 CH Offshore 3Q09
SIA Engineering 2Q10 Broadway Industrial 3Q09 Fortune REITS 3Q09 Eastern Asia 3Q09 DBS Group 3Q009
Cosco Corp 3Q09 Hyflux 3Q09 Parkway Life Real Estate 3Q09 Hiap Hoe 3Q09
Hi-P International 3Q09 SembCorp Marine 3Q09 Raffles Medical 3Q09 Jardine Cycle & Carriage 3Q09
Raffles Education 1Q10 Tuan Sing HoldingS 3Q09 MCL Land 3Q09
ST Engineering 3Q09 Singapore Reinsurance 3Q09
Yangzijiang (morning) 3Q09 SembCorp Ind 3Q09
Singapore Land 3Q09
UIC 3Q09
Electronics Sector Index (Oct) Foreign Reserves (Oct)
Purchasing Managers Index (Oct) 6-9 Nov 09

9 10 11 12 13
Armstrong 3Q09 Allied Technologies 3Q09 ASL Marine 1Q10 Asia Pacific FY09 Ban Joo & Co 2Q10 (14 Nov)
Best World 3Q09 China Yuchai 3Q09 Biosensors 2Q10 City Development 3Q09 Breadtalk 3Q09
Gems TV 3Q09 Ellipsiz 1Q10 Ezion 3Q09 Cityspring 3Q09 China Aviation 3Q09
Rickmers Maritime 3Q09 Hong Leong Finance 3Q09 Golden Agri Res 3Q09 ComfortDelgro 3Q09 CSE Global 3Q09
Telechoice Intl 3Q09 InnoTek 3Q09 Haw Par Corp 3Q09 Food Empire 3Q09 First Resources 30Q9
People's Food 3Q09 Hiap Seng 2Q10 Fraser & Neave 4Q09 Fraser & Neave 4Q09
SIA 2Q10 Indofood Agri 3Q09 Global Yellow pages 2Q10 Hotel Royal 3Q09
StarHub 3Q09 MFS Tech FY09 HG Metal FY09 Jason Marine 1H10
Noble Group 3Q09 Ho Bee 3Q09 Kencana 3Q09
Petra Food 3Q09 Hong Leong Asia 3Q09 Metro Holdings 2Q10
Saizen REIT 1Q10 Hongguo 3Q09 Pan Pacific Hotel 3Q09
SBS Transit 3Q09 HTL International 3Q09 Second Chancce (14 Nov)
Singapore Telecom 2Q10 IFS 3Q09 Swiber 3Q09
Venture Corp 3Q09 Olam 1Q10 Swissco 3Q09
Vicom 3Q09 Parkway Holdings 3Q09 UOL Group 3Q09
Yanlord 3Q09 Solidbuild Group 3Q09 Verigy Ltd 4Q09
Straits Trading Co 3Q09
WBL 4Q09
Wilmar 3Q09 Retail Sales (MoM) sa (Sep)
Retail Sales (YoY) (Sep)

16 17 18 19 20

Electronic Exports (YoY) (Oct)

Non-oil Domestic Exports (Oct)
Electronic Exports (YoY) (Oct)

23 24 25 26 27

CPI (YoY)
CPI (MoM)
GDP (YoY) 3Q (23-27 Nov) Industrial Production YoY (Oct)
GDP (annualized) (QoQ) 3Q (23-27 Nov) Industrial Production MoM SA (Oct)

30

Bank Loans & Advances (YoY) (Oct)

Credit Card Billings (Oct)
Credit Card Bad Debts (Oct)
M1 Money Supply (YoY) (Oct)
M2 Money Supply (YoY) (Oct)

Source: Bloomberg, DBS Vickers

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Wired Daily

DBSV 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

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(www.thomson.com/financial); Factset (www.factset.com); Reuters (www.rbr.reuters.com); Capital IQ (www.capitaliq.com) and Bloomberg
(DBSR GO). For access, please contact your DBSV salesperson.

GENERAL DISCLOSURE/DISCLAIMER
This document is published by DBS Vickers Research (Singapore) Pte Ltd ("DBSVR"), a direct wholly-owned subsidiary of DBS Vickers Securities
(Singapore) Pte Ltd ("DBSVS") and an indirect wholly-owned subsidiary of DBS Vickers Securities Holdings Pte Ltd ("DBSVH"). [This report is
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The research is based on information obtained from sources believed to be reliable, but we do not make any representation or warranty as to its
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The assumptions for commodities in this report are for the purpose of forecasting earnings of the companies mentioned herein. They are not to
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DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a
manager or co-manager in the past twelve months. Any US persons wishing to obtain further information, including any clarification on
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ANALYST CERTIFICATION
The research analyst 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 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 this report. As of
9 Nov 2009, the analyst and his / her spouse and/or relatives who are financially dependent on the analyst, do not hold interests in the securities
recommended in this report (“interest” includes direct or indirect ownership of securities, directorships and trustee positions).

COMPANY-SPECIFIC / REGULATORY DISCLOSURES

1. DBS Vickers Securities (Singapore) Pte Ltd and its subsidiaries has a proprietary position in the Tat Hong as of 5 Nov 2009.
2 DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBS Vickers Securities (USA) Inc ("DBSVUSA"), a U.S.-registered broker-
dealer, may beneficially own a total of 1% or more of any class of common equity securities of the mentioned company as of
9 Nov 2009.
3 Compensation for investment banking services:
i. DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA have received compensation, within the past 12 months,
and within the next 3 months may have receive or intend to seek compensation for investment banking services from
Allgreen.
ii. DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment
banking transaction as a manager or co-manager 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.

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