ANALYSTS SAY: Buy, Sell, Hold (1 Feb '18)

OUE Commercial REIT

Improved office performance

■ 4Q/FY17 DPU met our expectations at 24.1%/98.6% of our FY17 forecast.

■ Narrowing negative rental reversion gap amid high portfolio occupancy.

■ Aggregate leverage to rise to 40.3% post S$100m CPPU redemption.

■ Maintain Hold with a higher TP of S$0.75.

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DBS: Our pick in the banking sector

The recent re-rating of Singapore and Asian banks was supported by optimism over the outlook in the coming year. This also raised DBS’s historical price-book from <1x in 2016 to 1.45x currently. With healthy economic growth in the Asia Pacific region, we expect DBS to be in a good position to enjoy another year of broad-based fee income growth with growth from Wealth, Treasury and SME. We are projecting earnings growth of 24.9% in FY18 and 10.1% for FY19. With the recent re-rating, we have also raised our valuation peg to 1.45x FY18 book. This increases our fair value estimate from S$27.40 to S$29.50. Maintain BUY.

Aspen (Group) Holdings Limited

Entering into an opportune time

SINGAPORE |REAL ESTATE| SITE VISIT NOTE

We attended a site visit hosted by Aspen (Group) Holdings Limited (“Aspen”) to its flagship project Aspen Vision City (GDV: RM10bn) on Mainland Penang, a few of their other development sites and a sales gallery of its ongoing and pipeline projects on Tuesday, 17 January 2018. We also met with the President & Group CEO, Dato’ M. Murly, and the Chief Financial Officer, Christopher Looi, who shared with us more on the Group’s developments and insights on the Malaysian property market.

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CapitaLand Retail China Trust

On growth trajectory

Acquisition of Rock Square; good growth potential. After the divestment of CapitaMall Anzhen, CapitaLand Retail China Trust (CRCT) has acquired a much younger asset, Rock Square, in the first-tier city of Guangzhou. Although the initial yield is lower in comparison, we believe the asset has greater growth potential and is also an indication of CRCT embarking on a growth path.

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UOB KAYHIAN

Thai Beverage (THBEV SP)

One Step Closer To Vision 2020 With Sabeco Acquisition

THBEV made a Bt156b acquisition of Sabeco in Dec 17 and now has an effective stake of 26%. Following the acquisition, we estimate THBEV’s net gearing to have risen to 1.5x (from 0.2x), but see limited repayment risk, as the loan is collateralised against Sabeco shares. We view the acquisition positively as it gives THBEV access to the largest beer market in ASEAN, and is in line with THBEV’s long-term strategy for sustainable growth. Maintain BUY with a lower target price of $1.06.

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