Singapore Company Focus
Singapore Exchange
Refer to important disclosures at the end of this report
Bloomberg: SGX SP | Reuters: SGXL.SI
DBS Group Research . Equity
23 Oct 2014
HOLD S$6.86 STI : 3,202.74
Fair share of challenges
Price Target : 12-Month S$ 6.95 (Prev S$ 7.05)
Reason for Report : Earnings and TP revisions
Potential Catalyst: Revival of trading value
AllianceDBS vs Consensus: Below consensus
•
•
•
Analyst
LIM Sue Lin +603 2604 3969
[email protected]
•
Derivatives-led revenues as expected. With SDAV
Price Relative
S$
Relative Index
220
10.3
200
9.3
180
160
8.3
140
120
7.3
100
6.3
80
5.3
Oct-10
Oct-11
Oct-12
Singapore Exchange (LHS)
Forecasts and Valuation
FY Jun (S$ m)
2014A
Revenue
687
EBITDA
419
Pre-tax Profit
379
Net Profit
320
Net Pft (Pre Ex.)
320
EPS (S cts)
29.8
EPS Pre Ex. (S cts)
29.8
EPS Gth (%)
(5)
EPS Gth Pre Ex (%)
(9)
Diluted EPS (S cts)
29.9
Net DPS (S cts)
26.9
BV Per Share (S cts)
85.9
PE (X)
23.0
PE Pre Ex. (X)
23.0
P/Cash Flow (X)
20.5
EV/EBITDA (X)
15.8
Net Div Yield (%)
3.9
P/Book Value (X)
8.0
Net Debt/Equity (X)
CASH
ROAE (%)
35.4
Earnings Rev (%):
Consensus EPS (S cts):
Other Broker Recs:
Oct-13
60
Oct-14
Relative STI INDEX (RHS)
2015F
725
434
393
326
326
30.4
30.4
2
2
30.4
27.3
89.4
22.6
22.6
21.4
15.2
4.0
7.7
CASH
34.7
2016F
774
458
417
346
346
32.2
32.2
6
6
32.2
29.0
94.3
21.3
21.3
18.6
14.3
4.2
7.3
CASH
35.1
2017F
816
473
433
359
359
33.4
33.4
4
4
33.5
30.1
98.7
20.5
20.5
18.1
13.7
4.4
6.9
CASH
34.7
(11)
32.4
B: 5
(15)
36.5
S: 2
nm
41.4
H: 13
ICB Industry : Financials
ICB Sector: General Financial
Principal Business: SGX owns and operates the only integrated
securities exchange and derivatives exchange in Singapore and their
related clearing houses.
Source of all data: Company, AllianceDBS, Bloomberg Finance L.P.
www.dbsvickers.com
ed: TH / sa: JC
1QFY15 earnings were inline; led by derivatives
Base dividend of 4 Scts declared as expected
Challenging outlook; earnings cut by 11-15%
over FY15-16F
Maintain HOLD; TP trimmed to S$6.95
down by 14% q-o-q, 27% y-o-y, SGX’s securities market
revenues continued to slide, mainly due to low volatility. It
was observed that trades for stocks priced below S$5
suffered a decline y-o-y, while there was a slight increase in
the trading activity of stocks priced above S$5. Derivatives
revenues continued to soar, with a total traded volume of
29m contracts, mainly from the China-related contracts
(China A50 futures and Iron Ore derivatives). Other revenues
were lower q-o-q from depository services due to fewer
contracts processed, in line with lower securities market
activities. This was offset by higher issuer fees, while market
data and connectivity was flat.
Earnings cut by 11-15% over FY15-16F; introducing
FY17F forecasts. We cut our earnings forecasts by 11-15%
over FY15-16F to account for a persistently challenging
outlook, particularly in the securities market. Our FY15F
SDAV forecast is trimmed by 10% to S$1.16bn, with
derivatives revenues remaining largely intact. As
2QFY15/4QCY15 is typically a seasonally slower quarter,
expect a weak quarter ahead.
Implementation of initiatives to be phased over 24
months. Initiatives proposed by SGX in a consultative paper
issued in Feb 14 on (1) minimum trading price, (2) collateral
requirement for securities trading, (3) short position
reporting requirements, (4) transparency of trading
restrictions, and (5) reinforcing the SGX listings and
enforcement framework, will be implemented over the next
24 months. The reduction of board lots to 100 (from 1,000)
will start from Jan 15, while the minimum price of S$0.20
for a stock will be implemented in Mar 15 (companies will
be given a period of three years to adjust to this).
Maintain HOLD, TP trimmed to S$6.95. After imputing
our earnings downgrade into the DDM model, our TP is
trimmed to S$6.95 (from S$7.05) which implies 22x CY15F
EPS, just a tad above its 2007-14 mean PE. Downside to the
stock price should be limited, supported by dividend yields of
4-5% based on a 90% dividend payout assumption.
At A Glance
Issued Capital (m shrs)
Mkt. Cap (S$m/US$m)
Major Shareholders
SEL Holdings (%)
Free Float (%)
Avg. Daily Vol.(‘000)
1,071
7,347 / 5,770
23.4
71.0
1,408
Company Focus
Singapore Exchange
SGX: 1Q15 results summary
FY Jun (S$ m)
1Q
2015
1Q
2014
4Q
2014
yoy
% chg
qoq Comments
% chg
P&L Items
Securities Revenue
49.1
69.0
53.3
-28.8
-7.8
Derivatives Revenue
53.7
51.7
52.2
3.9
3.0
Other Revenue
66.0
63.3
67.1
4.2
-1.7
Total Revenue
168.9
184.1
172.6
-8.3
-2.2
Operating expenses
81.9
77.4
84.2
5.9
-2.8
Pre-tax profit
88.9
108.2
90.0
-17.8
-1.2
Net profit
77.6
92.3
77.4
-15.9
0.2
Securities volume (bn)
1.79
3.57
2.01
-49.7
-10.8
Securities value (S$bn)
0.97
1.33
1.13
-27.1
-13.9
Velocity
32%
47%
38%
0.450
0.418
0.412
7.8
9.3
3.07
3.5
3.17
-12.2
-3.1
Dragged by weak securities market; SDAV declined by 14% q-o-q; 27% y-o-y
Lifted by increased interest in the China A50 and Iron Ore contracts
Lower depository services due to fewer contracts offset by higher issuer fees
while market data and connectivity were flat
Higher staff and tech costs; 4QFY14 was seasonally higher
Daily average
Derivatives volume (m)
Open interest (m)
Source: Company, AllianceDBS
Regional Exchanges: Valuation comparison
Rec
Stock Exchange
TP
Last Px
Market Cap
(LCY)
(LCY)
(US$m)
FY14F
PE (x)
FY15F
FY14F
Div yield (%)
FY15F
FY14F
ROE (%)
FY15F
Hong Kong Stock Exchange
Hold
142.00
174.90
26,031
36.6
33.4
2.46
2.69
25.9
27.0
Singapore Stock Exchange*
Hold
7.00
6.86
5,792
22.0
20.6
4.08
4.38
35.4
36.0
Bursa Malaysia
Buy
10.10
7.91
1,293
22.4
20.4
4.02
4.41
24.1
25.7
Simple average
27.0
24.8
3.5
3.8
28.4
29.6
Weighted average
33.5
30.6
2.8
3.1
27.5
28.6
* refers to FY15F/FY16F; SGX’s FYE is June, HKEX and Bursa’s FYE is December
Prices as at 20 Oct 2014
Source: Bloomberg Finance L.P.; Company data; AllianceDBS
SGX: Rolling forward PE band
35.0
30.0
+2 stdev, 28.65
+1 stdev, 24.84
25.0
Average, 21.02
20.0
-1 stdev, 17.20
15.0
-2 stdev, 13.38
10.0
5.0
0.0
07
08
09
10
11
12
13
14
Source: Bloomberg Finance L.P.; Company data; AllianceDBS
Page 2
Company Focus
Singapore Exchange
Sensitivity Analysis
Key Assumptions
FY Jun
Average Daily Volume (m)
Average Daily Value (S$m)
Average Value/Volume
Velocity (%)
Segmental Breakdown
FY Jun
Revenues (S$ m)
Securities Market
Derivatives Market
Other revenue
Total
Revenues (%)
Securities Market
Derivatives Market
Other revenue
Total
Income Statement (S$ m)
FY Jun
Revenue
Cost of Goods Sold
Gross Profit
Other Opng (Exp)/Inc
Operating Profit
Other Non Opg (Exp)/Inc
Associates & JV Inc
Net Interest (Exp)/Inc
Exceptional Gain/(Loss)
Pre-tax Profit
Tax
Minority Interest
Preference Dividend
Net Profit
Net Profit before Except.
EBITDA
Growth
Revenue Gth (%)
EBITDA Gth (%)
Opg Profit Gth (%)
Net Profit Gth (%)
Margins & Ratio
Gross Margins (%)
Opg Profit Margin (%)
Net Profit Margin (%)
ROAE (%)
ROA (%)
ROCE (%)
Div Payout Ratio (%)
Net Interest Cover (x)
Source: Company, AllianceDBS
Page 3
2013A
2014A
2015F
2016F
2017F
3,048.8
1,479.9
0.5
52.0
2,726.0
1,136.0
0.4
39.0
2,589.7
1,165.4
0.5
40.0
2,641.5
1,241.5
0.5
40.0
2,694.3
1,266.3
0.5
40.0
2013A
2014A
2015F
2016F
2017F
275
202
238
715
227
209
251
687
233
226
266
725
248
245
281
774
253
266
297
816
38
28
33
100
33
30
37
100
32
31
37
100
32
32
36
100
31
33
36
100
2013A
2014A
2015F
2016F
2017F
715
(301)
414
0
414
0
4
5
(15)
408
(72)
0
0
336
351
456
687
(315)
372
0
372
0
2
5
0
379
(59)
0
0
320
320
419
725
(339)
385
0
385
0
2
5
0
393
(67)
0
0
326
326
434
774
(365)
410
0
410
0
2
5
0
417
(71)
0
0
346
346
458
816
(391)
425
0
425
0
2
5
0
433
(74)
0
0
359
359
473
2015
Average daily value
+/- 1%
Net Profit +/- 0.6%
Value-to-volume ratio
expected to gradually
inch up from a low of
S$0.38 closer to S$0.50
over time
Derivatives revenues to
lead growth amid
challenging securities
market business;
initiatives will take up to
24 months to see some
impact
Margins Trend
60.0%
58.0%
56.0%
54.0%
52.0%
50.0%
48.0%
10.4
13.5
13.8
15.1
(4.0)
(8.1)
(10.3)
(4.6)
5.5
3.5
3.7
1.8
6.8
5.5
6.2
6.1
5.4
3.4
3.8
3.8
57.9
57.9
47.0
39.0
19.1
38.6
89.1
NM
54.1
54.1
46.7
35.4
18.7
33.9
90.0
NM
53.2
53.2
45.0
34.7
18.7
33.3
90.0
NM
52.9
52.9
44.7
35.1
18.2
33.8
90.0
NM
52.1
52.1
44.0
34.7
17.9
33.4
90.0
NM
46.0%
44.0%
42.0%
2013A
2014A
Operating Margin %
2015F
2016F
2017F
Net Income Margin %
Company Focus
Singapore Exchange
Quarterly / Interim Income Statement (S$ m)
FY Jun
1Q2014
2Q2014
Revenue Trend
3Q2014
4Q2014
1Q2015
250
20%
15%
(2.2)
(1.4)
(1.6)
0.2
58.0
58.0
50.1
53.6
53.6
45.5
53.3
53.3
45.8
51.2
51.2
44.9
51.5
51.5
45.9
2013A
2014A
2015F
2016F
2017F
Net Fixed Assets
Invts in Associates & JVs
Other LT Assets
Cash & ST Invts
Inventory
Debtors
Other Current Assets
Total Assets
24
27
163
763
60
757
0
1,794
61
27
163
757
60
572
0
1,641
66
30
163
763
60
767
0
1,848
70
32
163
815
60
819
0
1,959
75
35
163
860
60
864
0
2,056
ST Debt
Creditor
Other Current Liab
LT Debt
Other LT Liabilities
Shareholder’s Equity
Minority Interests
Total Cap. & Liab.
0
783
100
0
22
889
0
1,794
0
616
83
0
20
922
0
1,641
0
794
75
0
20
960
0
1,848
0
848
79
0
20
1,012
0
1,959
0
894
82
0
20
1,060
0
2,056
(67)
763
392.0
1,096.0
65.9
0.4
1.8
1.7
CASH
CASH
N/A
7.2
(66)
757
353.1
943.9
81.0
0.4
2.0
1.9
CASH
CASH
N/A
7.4
(41)
763
337.2
876.3
74.6
0.4
1.8
1.8
CASH
CASH
N/A
7.0
(47)
815
373.8
939.0
68.6
0.4
1.8
1.8
CASH
CASH
N/A
6.6
(52)
860
376.2
920.4
63.4
0.4
1.8
1.8
CASH
CASH
N/A
0.0
Balance Sheet (S$ m)
FY Jun
Non-Cash Wkg. Capital
Net Cash/(Debt)
Debtors Turn (avg days)
Creditors Turn (avg days)
Inventory Turn (avg days)
Asset Turnover (x)
Current Ratio (x)
Quick Ratio (x)
Net Debt/Equity (X)
Net Debt/Equity ex MI (X)
Capex to Debt (%)
Z-Score (X)
Source: Company, AllianceDBS
Page 4
-10%
-15%
0
Revenue
4Q2014
4.2
1.2
0.1
2.2
-5%
50
3Q2014
0.6
0.4
0.1
1.1
0%
2Q2014
(10.6)
(16.5)
(17.4)
(18.8)
5%
100
1Q2014
(9.0)
0.4
(11.7)
5.3
Growth
Revenue Gth (%)
EBITDA Gth (%)
Opg Profit Gth (%)
Net Profit Gth (%)
Margins
Gross Margins (%)
Opg Profit Margins (%)
Net Profit Margins (%)
10%
150
4Q2013
169
(82)
87
0
87
2
1
0
0
90
(12)
0
78
78
98
3Q2013
173
(84)
88
0
88
2
1
0
0
91
(14)
0
77
77
99
2Q2013
166
(77)
88
0
88
1
0
0
0
90
(14)
0
76
76
98
1Q2013
165
(76)
88
0
88
1
0
0
0
89
(14)
0
75
75
98
4Q2012
184
(77)
107
0
107
1
0
0
0
109
(16)
0
92
92
117
3Q2012
Revenue
Cost of Goods Sold
Gross Profit
Other Oper. (Exp)/Inc
Operating Profit
Other Non Opg (Exp)/Inc
Associates & JV Inc
Net Interest (Exp)/Inc
Exceptional Gain/(Loss)
Pre-tax Profit
Tax
Minority Interest
Net Profit
Net profit bef Except.
EBITDA
200
Revenue Growth % (QoQ)
Revenues dragged by weak
securities market; derivatives
continued to soar; higher
listing fees helped lift overall
revenues
Asset Breakdown (2015)
Net Fixed
Assets 3.8%
Debtors 45.4%
Inventory 3.5%
Strong cash position,
well positioned to
meet new global
standards
Assocs'/JVs 1.7%
Bank, Cash
and Liquid
Assets 45.5%
Company Focus
Singapore Exchange
Cash Flow Statement (S$ m)
FY Jun
Capital Expenditure
2013A
2014A
2015F
2016F
2017F
408
38
(70)
(4)
(15)
61
419
(28)
0
(20)
0
8
(40)
(289)
0
0
(25)
(314)
0
65
40.4
36.5
379
45
(92)
(2)
16
13
359
(72)
0
0
0
7
(65)
(299)
0
0
0
(300)
0
(6)
31.9
26.7
393
46
(75)
(2)
(16)
0
344
(50)
0
0
0
0
(50)
(288)
0
0
0
(288)
0
6
33.6
27.4
417
46
(67)
(2)
2
0
395
(50)
0
0
0
0
(50)
(294)
0
0
0
(294)
0
52
36.6
32.1
433
46
(71)
(2)
2
0
407
(50)
0
0
0
0
(50)
(311)
0
0
0
(311)
0
45
37.7
33.2
80
Pre-Tax Profit
Dep. & Amort.
Tax Paid
Assoc. & JV Inc/(loss)
Chg in Wkg.Cap.
Other Operating CF
Net Operating CF
Capital Exp.(net)
Other Invts.(net)
Invts in Assoc. & JV
Div from Assoc & JV
Other Investing CF
Net Investing CF
Div Paid
Chg in Gross Debt
Capital Issues
Other Financing CF
Net Financing CF
Currency Adjustments
Chg in Cash
Opg CFPS (S cts)
Free CFPS (S cts)
70
60
50
40
30
20
10
0
2013A
2014A
Target Price & Ratings History
S$
1:
2:
Cl o s i n g Ta rg e t
Pri c e
Pri c e
10 Feb 14
6.72
7.15
24 Apr 14
6.96
7.05
3:
01 Aug 14
S.No .
7.54
7.34
7.14
2
3
6.94
6.74
6.54
6.34
Oct-13
1
Feb-14
Jun-14
Oct-14
Not e : Share price and Target price are adjusted for corporate actions.
Source: Company, AllianceDBS
Page 5
2016F
Capex to range from
S$50-55m
Source: Company, AllianceDBS
7.74
2015F
Capital Expenditure (-)
Da te
7.17
7.05
R a ti n g
Hold
Hold
Hold
2017F
Company Focus
Singapore Exchange
AllianceDBS Research 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
GENERAL DISCLOSURE/DISCLAIMER
This report is prepared by AllianceDBS Research Sdn Bhd (“ADBSR”) (formerly known as HwangDBS Vickers Research Sdn Bhd), a subsidiary of
Alliance Investment Bank Berhad (“AIBB”) and an associate of DBS Vickers Securities Holdings Pte Ltd (“DBSVH”). This report is solely intended for
the clients of DBS Bank Ltd and DBS Vickers Securities (Singapore) Pte Ltd, its respective connected and associated corporations and affiliates
(collectively, the “DBS Vickers Group”) 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 ADBSR.
The research set out in this report is based on information obtained from sources believed to be reliable and ADBSR, its holding company AIBB, their
respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the “Alliance
Bank Group”) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change
without notice. This document 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 independent legal or
financial advice. The Alliance Bank Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for
loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This
document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The Alliance Bank Group, along with its affiliates
and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. The Alliance Bank
Group may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking,
investment banking/corporate advisory and other banking services for these 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.
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 assessments.
The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may
not contain all material information concerning the company (or companies) referred to in this report.
The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and
assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which
the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results.
Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a
representation and/or warranty by the Alliance Bank Group (and/or any persons associated with the aforesaid entities), that:
(a)
(b)
such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and
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.
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.
DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, 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.
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 the date the report is
published, 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).
COMPANY-SPECIFIC / REGULATORY DISCLOSURES
1.
DBS Bank Ltd., DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”), their subsidiaries and/or other affiliates do not have a
proprietary position in the securities recommended in this report as of 31 Aug 2014 except for Singapore Exchange, HK Exchanges
& Clearing.
2.
DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates may beneficially own a total of 1% of any class of
common equity securities of the company mentioned as of 31 Aug 2014.
3.
Compensation for investment banking services:
DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates may have received compensation, within the past 12
months, and within the next 3 months may receive or intends to seek compensation for investment banking services fromthe
company mentioned.
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Company Focus
Singapore Exchange
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.
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. (“DBS”) or DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”),
both of which 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 and DBSVS are regulated by the Monetary
Authority of Singapore under the laws of Singapore, 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 is being distributed in Hong Kong by DBS Vickers (Hong Kong) Limited which is licensed and regulated by the
Hong Kong Securities and Futures Commission.
Indonesia
This report is being distributed in Indonesia by PT DBS Vickers Securities Indonesia.
Malaysia
This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR") (formerly known as HwangDBS Vickers
Research Sdn Bhd). 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. Research reports distributed are only
intended for institutional clients only and no other person may act upon it.
United
Kingdom
This report is being distributed in the UK by DBS Vickers Securities (UK) Ltd, who is an authorised person in the meaning of
the Financial Services and Markets Act and is regulated by The Financial Conduct Authority. Research distributed in the UK is
intended only for institutional clients.
Dubai
This research report is being distributed in The Dubai International Financial Centre (“DIFC”) by DBS Bank Ltd., (DIFC Branch)
rd
having its office at PO Box 506538, 3 Floor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC),
Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This
research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon
it.
United States
Neither this report nor any copy hereof may be taken or distributed into the United States or to any U.S. person except in
compliance with any applicable U.S. laws and regulations. It is being distributed in the United States by DBSVUSA, which
accepts responsibility for its contents. 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
jurisdictions
In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified,
professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.
AllianceDBS Research Sdn Bhd (128540 U)
(formerly known as HwangDBS Vickers Research Sdn Bhd)
th
19 Floor, Menara Multi-Purpose, Capital Square,
8 Jalan Munshi Abdullah 50100
Kuala Lumpur, Malaysia.
Tel.: +603 2604 3333 Fax: +603 2604 3921 email : [email protected]
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