Singapore Market Focus

ed: JS/ sa: YM, PY, CS

Go for visibility and resilience • STI rangebound at 3030 to 3230 in the weeks ahead

• Favour stocks with visible growth, resilient yields – Keppel Corp,

ST Engg, UOB, UMS, Yangzijiang, Keppel DC REIT, MLT

• Resilient domestic reopening plays - ComfortDelgro, FCT, MCT,

Koufu

Will the FED turn less hawkish? Global PMIs remained in expansion

territory in July despite some moderation from the YTD high as rising

cost and COVID-19 restrictions affected demand for several Asian

economies. Many countries are now seeing delta variant infection

waves including the US, which has seen daily cases rising to nearly

100,00 as the vaccination pace slows. Only about 50% of the US

population is currently fully vaccinated, a risk for ARA US Hospitality

and Prime US REIT if rising hospitalisation rates among the

unvaccinated forces states to reintroduce restrictions.

Seasonal choppiness STI’s choppy rangebound trend from the 3,030

to 3,230 level since the middle of March should continue in the

weeks ahead. The optimism on rising vaccination rates and

domestic reopening may be offset by uncertainties on the global

recovery pace due to the delta variant, US-China tensions,

normalising growth and seasonal volatility over the next 1-3 months

with August a typically weak month. The Singapore market current

trades near 13.48x (+0.25SD) 12-month forward PE.

Resilient domestic reopening Singapore is currently the world leader

in terms of the percentage of population vaccinated with mRNA

vaccines. We are cautiously optimistic on domestic reopening with

c.80% of population to be fully vaccinated by early Sept.

Beneficiaries include public transport operator ComfortDelgro, retail

REITs Frasers Centrepoint Trust and Mapletree Commercial Trust.

Travel bubbles are uncertain for now given the ever changing global

COVID-19 situation.

Visible growth, resilient yields We prefer stocks with strong growth

visibility such as semiconductor companies UMS that ride on the

sector’s sustained demand. Shipbuilder Yangzijiang should rise on

its recent big newbuild orders and a record order book of

US$6.67bn (excluding LOIs) and US$8.74bn respectively. UOB will

gather strength from strong earnings growth and upside from

dividend while ST Engg’s tall order book provides strong visibility and

yield. Keppel Corp’s acquisition of SPH offers scope for re-rating, the

deal is EPS accretive while providing monetization opportunities

from SPH’s prized assets. We also like industrial/logistics REITs that

are less impacted by potential setbacks to Singapore’s reopening -

Keppel DC REIT and Mapletree Logistics Trust.

STI : 3,175.1

Analyst

Kee Yan YEO, CMT +65 6682 3706 Janice CHUA +65 6682 3692

[email protected] [email protected]

Woon Bing Yong +65 6682 3704 Wei Le CHUNG +65 6878 7869

[email protected] [email protected]

Key Indices

Current % Chng

STI Index 3,175.10 -0.2%

FS Small Cap Index 343.49 0.5%

USD/SGD Curncy 1.35 0.0%

Daily Volume (m) 1,384

Daily Turnover (S$m) 1,281

Daily Turnover (US$m) 948

Source: Bloomberg Finance L.P.

Market Key Data

(%) EPS Gth Div Yield

2020 (44.6) 3.2

2021F 74.0 3.9

2022F 16.3 4.1

(x) PER EV/EBITDA

2020 28.0 20.5

2021F 16.1 16.5

2022F 13.8 14.7

DBS Group Research . Equity

6 Aug 2021

Singapore Market Focus

Singapore Market Focus

Refer to important disclosures at the end of this report

STOCKS

12-mth

Price Mkt Cap Target Performance (%)

S$ US$m S$ 3 mth 12 mth Rating

Keppel Corp 5.55 7,475 6.20 6.3 7.7 BUY

ST Engineering 4.01 9,254 4.20 7.2 24.5 BUY

UOB 26.49 32,880 29.20 0.0 38.0 BUY

UMS Holdings 1.76 695 1.83 23.7 67.0 BUY

Yangzijiang

Shipbuilding

(Holdings) Ltd 1.44 4,209 1.80 (2.1) 59.8 BUY

Keppel DC REIT 2.61 3,156 3.00 (1.5) (13.5) BUY

Mapletree

Logistics Trust 2.15 6,826 2.35 9.1 1.9 BUY

ComfortDelGro 1.57 2,519 1.99 (4.8) 18.8 BUY

Frasers

Centrepoint Trust 2.38 2,994 3.00 0.8 3.4 BUY

Mapletree

Commercial Trust 2.16 5,308 2.25 4.3 19.8 BUY

Koufu Group

Limited 0.64 263 0.77 (2.3) (3.7) BUY

Source: DBS Bank, Bloomberg Finance L.P.

Closing price as of 5 Aug 2021

https://www.dbs.com/insightsdirect/company/TR4295887849






















Market Focus

Go for visibility and resilience

August Market Outlook

Positive news on bank dividends offsets volatility from tightening

measures

▪ A choppy month that saw STI ending the month 1.4% higher (as of

29 Jul) at 3,175 as news of MAS lifting the dividend cap for banks

offset cautious sentiment due to the temporary reintroduction of

anti-COVID measures

▪ Banks UOB and OCBC rose after MAS lifted the 60% dividend cap

▪ Healthcare outperformed as Raffles Medical surged on strong

financial results

▪ Financials outperformed as SGX reported favourable market statistics for

June and the listing of an ETF, which lifted iFAST

▪ Consumer Discretionary underperformed as GHY announced a

delay in its production due to the lockdown in Malaysia

▪ Consumer Staples underperformed due to rising COVID-19 cases

in Indonesia, weighing on Delfi’s share price

FTSE ST Indices’ relative performance for July

Source: DBS Bank

Watch for the reopening in Singapore and Fed’s guidance

▪ End of Phase 2 (Heightened Alert) in Singapore

- Tightened measures are scheduled to be lifted on 18 August

- High vaccination rate, especially among seniors, is crucial and

important in determining the resiliency of our reopening

- Reopening will be done gradually

- Restrictions could be eased for vaccinated individuals in early

Aug

▪ 2021 Jackson Hole Economic Symposium

- At the June FOMC meeting, the Fed had announced that it

planned to tighten its monetary policy earlier than expected but

did not provide any details

- It mentioned that it will begin taper talks at upcoming meetings

▪ We believe that the spotlight will be on the Fed’s comments on

inflation and its monetary policy going forward

August event calendar

Date Event Comments

18 Aug Easing of Phase 2

(Heightened Alert)

Tightened measures

are scheduled to be

gradually eased

27-28

Aug

Jackson Hole

Economic

Symposium

This year’s symposium

is titled

“Macroeconomic

Policy in an Uneven

Economy”

Source: Bloomberg Finance L.P., DBS Bank

Manufacturing activity expansion is moderating

▪ July PMIs remain in expansion territory despite some moderation

from YTD high

▪ Taiwan’s July PMI is strongest at 65.2 on sustained demand for

semiconductor and technology products

▪ US and Eurozone recorded solid July PMIs of 59.5 and 62.8

respectively on demand recovery and producers being able to

pass on rising costs

▪ China’s July PMI expansion moderated to 50.4 as demand slipped

on rising costs

▪ Singapore’s July PMI held stable at 51

PMIs


-3.2

-1.9

-1.8

-1.2

0.1

1.0

1.4

1.6

1.6

1.8

2.4

2.9

5.7

6.2

-4.0 -2.0 0.0 2.0 4.0 6.0 8.0

Consumer Staples

Energy

Consumer Discretionary

Utilities

Communication Services

Information Technology

Real Estate

STI

DBS Coverage

Industrials

Banks

REITs

Financial

Health Care

MTD Return (%)

Market Focus


COVID-19 – some countries have it under control, some don’t

▪ Delta variant wreaks havoc on global pandemic control

– A few countries have been able to control the outbreak (e.g. TW,

HK)

– Others are seeing new waves: US, UK, ID, MY, TH, AUS

▪ ARA US Hospitality would benefit from US domestic travel recovery

but rising infection cases and slowing vaccination rate pose a risk

▪ From September, Singapore to establish travel corridors with

countries where COVID-19 is under control to allow quarantine-

free travel for those fully vaccinated

– We think travel corridors are likely to be unstable for now due to

the more infectious Delta variant and the difficulty in sustaining

a low infection rate once measures ease

▪ Situation should improve when more countries reach a high

enough vaccination rate (e.g. > 70% or >80%), possibly by year-end

Daily Confirmed COVID-19 Cases (7-Day Moving

Average)

Source: Johns Hopkins University, Our World in Data

Singapore is World #1 in mRNA vaccination rate!

▪ Singapore’s vaccination rate is currently the highest globally,

targets c.80% of the population to be fully vaccinated by early

September

▪ Vaccination pace for Malaysia, Hong Kong, Japan, and Taiwan have

picked up speed over the past 1 month

▪ But we note US’s vaccination pace has slowed down considerably

with <5% monthly rise in fully vaccination rate; only 50% of the

population is now fully vaccinated

- Risks for ARA US Hospitality and Prime US if rapidly rising

hospitalization rate among the unvaccinated forces states to

reintroduce restrictions

▪ Countries are easing restrictions as vaccination rate rises, remains

to be seen if these are sustainable

- Domestic travel has resumed in the US

- UK has removed most social distancing restrictions, no

quarantine for the fully vaccinated from the US/EU

Percentage of Individuals Fully Vaccinated

Source: Our World in Data

Will it be another “red August”?

▪ Consistent negative m-o-m performance in August over a 13-year

period from 2007 to 2019

- Average decline -4.08%, median -3.2%

▪ Year 2020 an exception as COVID-19 outbreak distorted seasonal

trend

▪ This year could see a return to the norm amid normalizing GDP

growth and continued COVID-19 uncertainties

STI average (2010 to 2019)


3000

3050

3100

3150

3200

3250

1/04

1/20

2/05

2/21

3/09

3/25

4/10

4/26

5/12

5/28

6/13

6/29

7/15

7/31

8/16

9/01

9/17

10/0

3

10/1

9

11/0

4

11/2

0

12/0

6

12/2

2

August correction

Market Focus


Straits Times Index m-o-m (%) 2007 to 2019


Choppy trend to continue

▪ STI currently trades at c.13.48x (+0.25SD) 12-mth fwd PE

▪ STI has been trading around the 3,030 to 3,230 level since middle

March

▪ Expect choppy rangebound trend to continue in coming weeks

▪ Optimism about rising vaccination rates and domestic reopening is

offset by changing COVID-19 situation, US-China tensions, and a

seasonally weak month of August

▪ Support at 3090, strong at 2980

Straits Times Index (Daily)

Source: DBS Bank

Year January February March April May June July August September October November December

2019 3.96 0.71 0.01 5.83 -8.31 6.54 -0.63 -5.88 0.43 3.52 -1.11 0.91

2018 3.85 -0.45 -2.56 5.42 -5.14 -4.65 1.56 -3.2 1.36 -7.31 3.27 -1.57

2017 5.76 1.63 2.54 0.01 1.11 0.49 3.19 -1.57 -1.75 4.79 1.76 -0.89

2016 -8.8 1.42 6.54 -0.08 -1.67 1.79 0.98 -1.68 1.73 -1.94 3.24 -0.84

2015 0.77 0.34 1.3 1.17 -2.73 -2.2 -3.46 -8.78 -4.47 7.43 -4.75 0.94

2014 -4.43 2.76 2.5 2.39 0.95 -1.22 3.64 -1.39 -1.51 -0.08 2.33 0.44

2013 3.65 -0.39 1.17 1.82 -1.69 -4.86 2.27 -5.99 4.59 1.35 -1.07 -0.28

2012 9.84 3.01 0.55 -1.06 -6.92 3.82 5.49 -0.36 1.15 -0.72 1.04 3.16

2011 -0.32 -5.32 3.17 2.38 -0.63 -1.25 2.21 -9.53 -7.28 6.75 -5.37 -2.08

2010 -5.26 0.2 4.97 3.02 -7.46 3.01 5.37 -1.25 4.99 1.45 0.07 1.44

2009 -0.86 -8.68 6.59 12.96 21.29 0.17 13.98 -2.49 3.07 -0.8 3.05 6.06

2008 -13.96 1.5 -0.63 4.67 1.42 -7.68 -0.61 -6.48 -13.91 -23.94 -3.43 1.67

2007 4.3 -0.32 4.17 3.95 4.73 1.01 0.15 -4.38 9.52 3.24 -7.1 -0.88

Average -0.12 -0.28 2.33 3.27 -0.39 -0.39 2.63 -4.08 -0.16 -0.48 -0.62 0.62

Median 0.77 0.34 2.5 2.39 -1.67 0.17 2.21 -3.2 1.15 1.35 0.07 0.44

Market Focus


Strategy

We expect the choppy sideways trend that’s been a

characteristic of the Singapore market to continue in the

foreseeable future for the following reasons: (1) uncertain

global COVID-19 situation due to delta variant, (2) growing

US-China friction, (3) seasonal volatility over the next 1-3

months with August a typically weak month, (4) normalising

growth.

Be selective against this backdrop - we prefer stocks with

growth visibility and dividend resilience. While Singapore

should see a more resilient domestic reopening from early

September due to the high 80% vaccination rate, we think

the resumption of travel bubbles or corridors will be tricky

and likely unstable given the ever changing global COVID-

19 situation.

Growth visibility, resilient dividend

Positive on high-reward-to-risk growth stocks with smaller

downside risk given their secular uptrend and growth

visibility. Here, we pick semiconductor company UMS. The

momentum in the semiconductor industry remains strong

as the US 3-month semiconductor equipment billings has

continued to post strong gains, increasing 58.4% y-o-y to

US$3.67bn in June 2021. UMS is trading at c.14.7x FY21F

earnings, which is below the peak valuation multiple of 17x

in 2018. This is despite the strong industry momentum that

has already surpassed the 2018-highs.

US 3-month Semiconductor Equipment Billings

Source: SEMI, CEIC, DBS Bank

Shipbuilder Yangzijiang should see strong earnings growth

ahead with newbuild orders and order book that now

stands at a record high of US$6.67bn (excluding LOIs) and

US$8.74bn respectively following the latest order win worth

US$1.08bn. While margins are likely to be affected by

higher steel cost in the near-term, this could be partially

offset by higher revenue and divestment gains from vessel

disposals.

Keppel Corp is our preferred situational play, its latest offer

to take SPH private is both earnings accretive and

synergistic, adding an 18% boost to recurrent income while

providing monetisation opportunities to unlock value from

SPH’s suite of prized assets in student hostels and senior

living portfolio.

UOB has outperformed expectations on stronger loan

growth and lower provisions with further dividend upside.

We like ST Engineering for its strong earnings visibility,

growth in order book to S$15.7b despite COVID challenges

while offering decent yield.

For resilient income yielding stocks, we prefer

industrial/logistics REITs that are sufficiently buffered

against potential setbacks to Singapore’s reopening and

provide decent yields. Our picks are Keppel DC REIT and

Mapletree Logistics Trust

.

-50.0%

0.0%

50.0%

100.0%

0

1,000

2,000

3,000

4,000

Jun-19 Dec-19 Jun-20 Dec-20 Jun-21

US

D'm

illio

n

Y-o-Y Growth (RHS)

US Semiconductor Equipment Billings

Market Focus


Barbell Picks

Company

Price

26 July

(S$)

Tgt Price

12-mth

(S$)

Tgt

Return

Mkt Cap

(S$m) Rcmd

Div Yield

21 (%)

Net D/E

21

P/B 20

(x)

P/E 21

(x)

EPS Grwth

(%)

21

EPS Grwth

(%)

22

High Reward-to-Risk

Keppel Corp 5.25 6.20 18% 9,553 BUY 3.0 0.8 0.9 13.4 nm 16.1

UMS 1.59 1.83 15% 848 BUY 2.2 Cash 3.4 14.7 58.7 14.2

UOB 25.89 29.30 13% 43,363 BUY 4.4 - 1.1 11.4 30.4 14.4

Yangzijiang 1.380 1.80 30% 5,311 BUY 3.8 Cash 0.8 9.0 12.1 25.8

Resilient Income Yielding

KDC REIT 2.56 3.00 17% 4,182 BUY 3.9 0.4 2.1 24.4 2.3 10.5

MLT 2.08 2.35 13% 8,909 BUY 4.1 0.4 1.4 26.2 16.6 2.1

ST Engineering 3.96 4.20 6% 12,354 BUY 3.8 0.4 5.4 23.0 3.2 5.5

Source: DBS Bank

A more resilient domestic reopening from September

Singapore is currently the world leader in getting its

population vaccinated with mRNA vaccines. Unlike previous

start-stop domestic reopening experiences, we are

cautiously optimistic that Singapore’s domestic reopening

will be more stable and resilient with c.80% of population

fully vaccinated by early September. Beneficiaries include

public transport operator ComfortDelgro, retail REITs

Frasers Centrepoint Trust and Mapletree Commercial

Trust, Suntec REIT as well as F&B player Koufu.

Risks to our view will be the more infectious delta variant

raising the need for a higher population vaccination rate.

Children below 12 years old could also be the soft

underbelly to Singapore’s domestic reopening as this group

forms a significant percentage of the remaining 20% that

are unvaccinated.

While the Singapore government has plans for quarantine

free travel for the vaccinated to countries where COVID-19

is under control, we believe that travel bubbles or corridors

will remain unstable given the ever changing global COVID-

19 situation. Thus, we maintain our view that travel/tourism

related names such as SATS, SIA and hotel REITs that are

more reliant on international tourist arrivals such as CDL

HT will lag domestic recovery.

Domestic recovery picks

Company Price

29 Jul 2021

Tgt Price

12-mth

(S$)

Target

Return

Mkt Cap

(S$m) Rcmd

PER

21

(x)

PER

22

(x)

EPS

Growth

21 (%)

EPS

Growth

22 (%)

Div

Yield 21

(%)

Net Debt

/ Equity

21

P/BV

20

(x)

ComfortDelgro 1.60 1.99 24% 3,468 BUY 14.4 13.0 288.7 10.9 3.4 cash 1.3

FCT 2.41 3.00 24% 4,094 BUY 17.7 19.8 3.5 -10.5 5.0 0.4 1.1

MCT 2.16 2.25 4% 7,172 BUY 25.0 23.3 10.0 7.3 4.5 0.3 1.1

Suntec REIT 1.46 1.85 27% 4,149 BUY 23.6 20.6 30.6 14.3 6.0 0.4 0.7

Koufu 0.645 0.77 20% 358 BUY 14.2 13.9 64.6 2.2 3.5 cash 3.5

Source: DBS Bank

Market Focus


DBS Bank recommendations are based on 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 share price catalysts within this time frame)

*Share price appreciation + dividends

Completed Date: 6 Aug 2021 06:35:30 (SGT)

Dissemination Date: 6 Aug 2021 08:04:36 (SGT)

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

GENERAL DISCLOSURE/DISCLAIMER

This report is prepared by DBS Bank Ltd. This report is solely intended for the clients of DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte

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 Ltd.

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 independent legal or financial advice. The DBS 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 DBS 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 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 assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete

or condensed, it may not contain all material information concerning the company (or companies) referred to in this report and the DBS

Group is under no obligation to update the information in this report.

This publication has not been reviewed or authorized by any regulatory authority in Singapore, Hong Kong or elsewhere. There is no

planned schedule or frequency for updating research publication relating to any issuer.

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 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.

Market Focus


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 associate1 does

not serve as an officer 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 interests2 in relation to an issuer or a new listing applicant that

the analyst reviews. DBS Group has 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 Yangzijiang Shipbuilding, Keppel DC REIT, Mapletree Logistics Trust, ComfortDelgro, Frasers Centrepoint Trust, Mapletree

Commercial Trust, Keppel Corporation, ST Engineering, UOB, ARA US Hospitality Trust, Prime US REIT, SATS, Singapore Airlines Limited,

CDL Hospitality Trusts, UOB, OCBC, Singapore Exchange, Suntec REIT, SPH, recommended in this report as of 30 Jun 2021.

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 Keppel DC REIT, Mapletree Logistics Trust, ComfortDelgro, Frasers Centrepoint Trust, Mapletree Commercial Trust, ARA US

Hospitality Trust, Prime US REIT, Suntec REIT, recommended in this report as of 30 Jun 2021.

4. DBS Bank Ltd, DBS HK, DBSVS, DBSVUSA or their subsidiaries and/or other affiliates beneficially own a total of 1% of any class of

common equity securities of Keppel DC REIT, Mapletree Logistics Trust, Frasers Centrepoint Trust, ARA US Hospitality Trust, Prime US

REIT, as of 30 Jun 2021.

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.

Market Focus


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 Mapletree Logistics Trust, Frasers Centrepoint Trust Singapore Airlines Limited, G.H.Y

Culture & Media Holding Co., Limited, as of 30 Jun 2021.

6. DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA, within the next 3 months, will receive or intend to

seek compensation for investment banking services from Prime US REIT, as of 30 Jun 2021.

.

7. 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 Mapletree Logistics Trust, Frasers Centrepoint Trust Singapore Airlines Limited, G.H.Y Culture & Media Holding Co.,

Limited, in the past 12 months, as of 30 Jun 2021.

8. 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.

Directorship/trustee interests:

9. Sim S. LIM, a member of DBS Group Management Committee, is a Independent non-executive director of ST Engineering as of 02 Jul

2021.

10 Peter Seah Lim Huat, Chairman & Director of DBS Group Holdings, is a Director / Chairman of Singapore Airlines Limited as of 30 Jun

2021.

11 Olivier Lim Tse Ghow, a member of DBS Group Holdings Board of Directors, is a Non-Exec Director of Raffles Medical as of 30 Jun 2021.

12 Sok Hui CHNG, a member of DBS Group Management Committee, is a Director of Singapore Exchange as of 02 Jul 2021.

13 Tham Sai Choy, a member of DBS Group Holdings Board of Directors, is a Chairman of Singapore Exchange Listings Advisory Committee

and a Director of Keppel Corporation as of 30 Jun 2021.

Disclosure of previous investment recommendation produced:

14. 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.

Market Focus


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.

DBS, 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). DBS Bank Ltd., Hong Kong Branch is a limited liability

company incorporated in Singapore.

For any query regarding the materials herein, please contact Carol Wu (Reg No. AH8283) 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.

Market Focus


United

Kingdom

This report is produced by DBS Bank Ltd which is regulated by the Monetary Authority of Singapore.

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

International

Financial

Centre

This research report is being distributed by DBS Bank Ltd., (DIFC Branch) having its office at units 608 - 610, 6th

Floor, Gate Precinct Building 5, PO Box 506538, 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 Arab

Emirates

This report is provided by DBS Bank Ltd (Company Regn. No. 196800306E) which is an Exempt Financial Adviser as

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

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.

Market Focus


DBS Regional Research Offices

HONG KONG

DBS (Hong Kong) Ltd

Contact: Carol Wu

13th Floor One Island East,

18 Westlands Road,

Quarry Bay, Hong Kong

Tel: 852 3668 4181

Fax: 852 2521 1812

e-mail: [email protected]

MALAYSIA

AllianceDBS Research Sdn Bhd

Contact: Wong Ming Tek

19th Floor, Menara Multi-Purpose,

Capital Square,

8 Jalan Munshi Abdullah 50100

Kuala Lumpur, Malaysia.

Tel.: 603 2604 3333

Fax: 603 2604 3921


Co. Regn No. 198401015984

(128540-U)

SINGAPORE

DBS Bank Ltd

Contact: Janice Chua

12 Marina Boulevard,

Marina Bay Financial Centre Tower 3

Singapore 018982

Tel: 65 6878 8888


Company Regn. No. 196800306E

THAILAND

DBS Vickers Securities (Thailand) Co Ltd

Contact: Chanpen Sirithanarattanakul

989 Siam Piwat Tower Building,

9th, 14th-15th Floor

Rama 1 Road, Pathumwan,

Bangkok Thailand 10330

Tel. 66 2 857 7831

Fax: 66 2 658 1269


Company Regn. No 0105539127012

Securities and Exchange Commission,

Thailand

INDONESIA

PT DBS Vickers Sekuritas (Indonesia)

Contact: Maynard Priajaya Arif

DBS Bank Tower

Ciputra World 1, 32/F

Jl. Prof. Dr. Satrio Kav. 3-5

Jakarta 12940, Indonesia

Tel: 62 21 3003 4900

Fax: 6221 3003 4943


Singapore Market Focus

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