ANALYSTS SAY: Buy, Sell, Hold (19 Feb '19)

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MAYBANK KIM ENG	CGS CIMB
DBS Group (DBS SP) On track to deliver in 2019E 4Q18 in line, supported by rising NIM, lower NPLs Core 2018 earnings were in line with MKE and Street expectations with 4Q18 earnings rising 8.3% YoY. Higher NIM (+9bps YoY) and loan growth (+6.7% YoY) were key drivers that will continue to push earnings momentum in 2019E. Higher costs surprised us and this pressure is likely to remain from regional expansion and integration efforts. We have lowered FY19/20E core net profit by 4% (Fig. 2) and marginally reduced our multi-stage DDM TP to SGD29.56 (COE 10.3%, 3% terminal), which still offers 17% upside. Maintain BUY on our top sector pick. Deterioration of asset quality remains a key risk. Read More ...	Singapore Strategy Singapore budget 2019 ■ Our impression of the 2019 Singapore budget is non-radical. The further tightening of foreign labour policies is not materially negative, cushioned by automation grants. ■ There was no sugar tax or details on e-commerce tax as expected by consensus. ■ Stocks with positive implications: STE on more spending in physical and cyber defence; CD could indirectly benefit from higher excise diesel duty. Read More ...
OCBC	DBS VICKERS
Mapletree Industrial Trust: Finalising funding options for 18 Tai Seng Street Mapletree Industrial Trust (MIT) has received in-principle approval from SGX-ST for its private placement exercise to raise S$201m in gross proceeds with the issuance of 103.36m new units at an issue price of S$1.945. The bulk of the proceeds would be used to partly finance the acquisition of 18 Tai Seng Street (total acquisition outlay of S$271.0m). While we are not surprised at this equity fund raising exercise, we had previously assumed full debt financing for the acquisition. Hence, we now update our projections in accordance to the finalised funding details. After trimming our FY19 and FY20 DPU forecasts by 1.2% and 2.9%, respectively, we derive a lower fair value estimate of S$1.98 (previously S$2.04).	Healthcare and Defence stocks are Budget winners • 2019 expansionary budget focuses on security, companies’ competitiveness and building a caring and inclusive society • Muted stock market effects but interesting to watch for upcoming developments by various ministries • Market to refocus on US-China trade deal and results season • Base-case STI objective of 3,250 at mid-year; bull case of 3,500 by year-end Read More ...

Check out our compilation of Target Prices

Counter Name	Last	Change
AEM Holdings	2.320	0.010
Best World	2.480	-0.010
Boustead Singapore	0.940	0.005
Broadway Ind	0.132	-
China Aviation Oil (S)	0.920	-0.005
China Sunsine	0.420	-
ComfortDelGro	1.440	0.020
Delfi Limited	0.880	-0.010
Food Empire	1.120	-0.010
Fortress Minerals	0.300	-
Geo Energy Res	0.295	-
Hong Leong Finance	2.420	-0.030
Hongkong Land (USD)	3.230	-0.050
InnoTek	0.500	-0.025
ISDN Holdings	0.305	-
ISOTeam	0.044	-0.001
IX Biopharma	0.043	-0.005
KSH Holdings	0.265	0.005
Leader Env	0.052	-
Ley Choon	0.050	-0.003
Marco Polo Marine	0.068	-
Mermaid Maritime	0.143	-
Nordic Group	0.320	0.005
Oxley Holdings	0.089	-0.001
REX International	0.127	0.001
Riverstone	0.780	-
Southern Alliance Mining	0.475	-
Straco Corp.	0.505	0.005
Sunpower Group	0.205	-
The Trendlines	0.064	-0.001
Totm Technologies	0.021	-0.001
Uni-Asia Group	0.825	-
Wilmar Intl	3.210	0.030
Yangzijiang Shipbldg	1.710	0.010

Counter Name

Last

Change

AEM Holdings

2.320

0.010

Best World

2.480

-0.010

Boustead Singapore

0.940

0.005