DBS Vickers: Expecting good results from .... & highlighting value stocks such as....

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04 February 2016

Excerpts from DBS Vickers report With STI falling by nearly 9% in January, small cap names were not spared and our picks fell by an average of 5.9% since our last issue of SMC Monthly. We focus our picks on names that should report strong earnings or declare an attractive dividend. Japfa: Parent stock chickens used to lay eggs for DOC (day-old chicks). Photo: RHBWe expect good results from - Japfa, Riverstone, mm2, Osim while dividend yield for CMH Pacific is attractive at c.7%. CMH is likely to reward shareholders with a final dividend of up to 3.5Scts. Value is also emerging from the P/BV perspective. We highlight a couple of names that offer value: Midas Holdings (BUY, TP S$0.49) is trading at c. 0.5x P/BV despite being profitable, 2) Perennial Real Estate Holdings (BUY, TP S$1.32) is at just 0.5x P/BV and 3) Centurion Corporation (BUY, TP S$0.59) trades at 0.6x P/BV and less than 7x PE. We also feature leading local F&B group, Jumbo, whose growth is underpinned by new outlets in Shanghai and Singapore, in an Equity Explorer. For SMC Radars, we highlight Best World, Serial System, and Sunningdale. See:  BEST WORLD: Takeaways from discussion on direct-selling prospects in China RIVERSTONE: Oct 2015 factory visit video by NextInsight SERIAL SYSTEM: Dividend yield expected to be 6-8% over next 12 months JAPFA: Day-old-chick prices spike up

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