Excerpts from Deutsche Bank's report


top2014picks_11.13



 
ComfortDelgro : Positive business reforms in Singapore and newly announced fare formula present upside risks to our forecasts.
 
Genting SP : Improving China macro outlook, as 50-60% of VIP roll comes from HK/China. Operating cost stabilizing. Potential positive news in Japan.
 
Yangzijiang Shipbuilding : Capturing market share during current consolidation. Promising new order flow momentum.
 
DBS : Least exposure to an ASEAN slowdown. DBSHK’s shift in business focus is earnings-positive.
 
Golden Agri : Most leveraged play to our forecast CPO price rally in FY14/15.





We advocate stocks with exposure to global growth, and we like the stocks listed below (to play this theme).
 
250palmoilDeutsche is bullish on palm oil demand in 2014 and 2015. Photo: Internet> One hundred per cent of Golden Agri’s earnings are derived from palm oil.

We are bullish on palm oil demand in 2014 and 2015, due to our upbeat economic outlook, the continued rapid growth in key developing nations, and the positive influence of biodiesel taking off globally (Buy, TP of  SGD0.75).
 
> Wilmar is a proxy for food demand in Asia. We believe that Chinese flour and rice demand, as a well as the expansion of its business into Africa and India, should drive growth (Buy, TP of SGD4.40).
 
> „ We like ST Engineering (c.28% of revenues in USD) in light of QE tapering and eventual USD strength (Buy, TP of SGD4.45). 
 
>„ We are positive on DBS Group, as its Hong Kong operation is the largest overseas contributor, accounting for 26% of earnings (Buy, TP of SGD19.50).
 
>„ We recommend Yangzijiang Shipbuilding, as it is positioned to receive more orders, due to its strong execution track record (Buy, TP of SGD1.48).
 
>„ We like Genting Singapore, due to the improving China macro outlook, as 50-60% of RWS VIP roll comes from China and HK (Buy, TP of SGD1.63).
 
>„ We like CapitaLand, due to profit recognition from its Singapore and China residential pipelines, new investments of SGD1.6bn and CapitaMalls Asia (Buy, TP of SGD4.39).
 
Genting Hong Kong’s growth should remain robust, driven by Norwegian Cruise Line Holdings and a yield improvement at Star Cruises Asia (Buy, TP of USD0.57).



 

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