Singapore Research Team – 6533 9688 research@dbsvickers.com www.dbsvickers.com “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” “Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6398 7954 in respect of any matters arising from or in connection with this report.” Spotlight On (SP) Singapore Telecom: Reversal of traditional role BUY; S$2.96; ST SP; Price Target: 12-month S$3.40 (Prev S$3.50) • Mature markets to outshine regional associates in 4Q10F – a reversal of traditional role. • SingTel may report 4Q10F profit of S$973m (+1% yoy, -2% qoq) in line with street expectations. Special dividends cannot be ruled out, in our view. • FY11F earnings lowered by 2.5% due to weaker than expected Telkomsel. TP lowered to S$3.40 • BUY quality blue chip at 12x PER (Hist. average 13.4x) (HK) HK/China Strategy Update: Awaiting a breakthrough • Hang Seng Index to stay at 19,500 - 23,000 pending breakthrough catalysts. • Stock market illiquidity and volatility worsen as catalysts becoming mixed • Defensive strategy for long-funds, ie yield and PRC supportive sectors Ideas & Updates SINGAPORE First Ship Lease Trust: Unexpected counterparty issues HOLD (downgrade from BUY) S$0.545; FSLT SP; Price Target: 12-Month S$0.55 (Prev S$0.78) Singapore Telecom – See Spotlight MALAYSIA Digi.Com: Optimizing balance sheet HOLD; RM22.68; DIGI MK; Price Target: 12-Month RM20.90 (Prev RM21.60) HONG KONG HK/China Strategy Update – See Spotlight THAILAND Public Holiday KOREA Daewoong Pharmaceutical: Substantial improvement in 4QFY09, BUY, TP (12M): W80,000 CP (5/3): W50,300 Nepes Corp.: Decent 1Q result largest quarterly earnings expected in 2Q BUY, TP (12M): W26,000 (upgrade) CP (5/3): W18,850 SFA Engineering : Poised to benefit the most from Samsung Electronics’ business expansion BUY, TP (12M): W100,000 CP (May 4): W58,800 Results SINGAPORE Raffles Education (RLS SP): Below expectation ST Engineering (STE SP): Below expectation DBS Group Research . Equity 5 May 2010 Regional Morning Pack Regional Morning Pack Page 2 Analyst Roadshows & Events 2010* Events Date Location DBSV Analyst China Property Field Trip to Dalian and Shenyang 04 – 07 May CH Consumer Sector 17 – 21 May US Mavis Hui, Titus Wu POA Conference 24 – 25 May UK POA Conference 26 – 27 May US NDCR Corp Mtg/Lunch/Conf Call 2010* Events Date Location DBSV Analyst OUE 11 May SG *To register your interest in the above events, please contact your DBSV Sales representative. Market Data Earnings Gth (%) PE (x) 10F 11F 10F 11F Singapore 20.1 14.4 14.5 12.7 Malaysia 17.5 12.6 16.3 14.5 HK HSI 24.6 15.8 13.9 12.0 HK HSCCI (Red) 23.4 15.2 15.6 13.5 HK HSCEI (H) 31.1 18.3 11.9 10.1 Thailand 15.6 12.9 10.9 9.7 Indonesia 17.3 18.0 14.9 12.9 Source: DBS Vickers Key Indices Indices Closed as 4.05.10 % chg vs previous close YTD (%) QTD (%) MTD (%) Asia JCI Index 2,959 -0.1 16.8 6.5 -0.4 PCOMP 3,291 0.0 7.8 4.1 0.0 KLCI 1,343 -0.3 5.5 1.7 -0.3 KOSPI 1,719 -0.1 2.1 1.5 -1.3 SET 797 4.4 8.5 1.1 4.4