Outlook 2014

First Edition
ALook Into Singapore’s Stock
Market In 2014
Outlook
2014

2
Engaging You, The Retail Investor!
The shift of media consumption has long been in the making.
The digital and social media revolution is upon us and this e-
publication is just one of the many channels in which we hope
to engage our readers.
In this e-publication we have sought to bring all that is good be-
tween the two brands, namely, Shares Investment and Trade-
able.
With Shares Investment, we hoped to encapsulate the detailed
analysis and stock picks that our sister publication is known for.
Coupled with expert analysis from investment gurus such as Hu
Li Yang, with whom they have cultivated a very good relation-
ship with.
At the same time, we hope to bring elements of Tradeable’s
granular and easily understood style to this e-publication. To-
gether with visuals that compel and educate the reader, we are
sure that this e-publication will be a hit with retail investors.
Organisation And Content
This e-publication is composed of three main sections that are
fairly independent and may be read in a variety of sequences.
However, I would recommend that you read from the beginning
to the end so as to get a richer reading experience.
Part 1 is a broad introduction section which sets the global eco-
nomic picture moving forward into 2014. It is in this section
where we will feature an exclusive interview with investment
guru, Hu Li Yang.
Part 2 will delve deeper into specific sectors which we feel will
perform well in 2014. Look out for those specific catalysts that
could underpin growth in each sector.
Part 3 will look at stock picks for the new year. These stock
picks have been done through a thorough phase of fundamen-
tal analysis in which specific developments and possible future
catalysts could propel share price appreciation.
By the end of this e-book, I hope that you would have grown
just a little bit wiser when it comes to investing in stocks in
2014.
Here’s wishing all readers a healthy and prosperous 2014!
Simeon Ang
Editor
Tradeable

1
In this section we will look
at the macroeconomic
factors that might affect the
Singapore stock markets.
This section will be
comprised of:
• Investment guru, Hu Li
Yang’s overall outlook
• The Shares Investment
team’s outlook on:
• Developed markets
• Emerging markets
Macroeconomic
Outlook

4
If the previous 10 years were years of wealth appreciation, then
the next 10 years will be years of wealth depreciation. This is
the grim and stark prediction that Asian investment guru, Hu Li
Yang had when I caught up with him when he was in town over
the weekend.
Eager to find out more, I asked him about his outlook for 2014
as well as what investors should look out for in the year of the
horse.
Outlook 2014 – High US Stock Prices A
Bad Omen
Off the bat, Hu was very pessimistic. When asked about his out-
look for 2014, he mentioned two major factors that have fed his
naysaying. The first factor being that US stock indices are cur-
rently at their peaks. And as with most situations, when prices
have hit peaks, they usually fall dramatically.
In fact, all three major US stock indices (S&P 500, NASDAQ,
Dow Jones) are currently at historic highs. Hu felt that US mar-
kets are currently reflecting all future expectations of an eco-
nomic recovery. In fact, he feels that US markets are currently
overpriced.
Source: FactSet, 5 year chart on S&P 500 (Blue) versus Dow
Jones Industrial (Green) versus NASDAQ (Red)
Hence, in an overpriced market, all that is needed is a small
nudge in the opposite direction and the house of cards would
fall.
Section 1
Hu Li Yang: Don’t
Fall Off The Horse’s
Back in 2014!

5
The second major issue that Hu noticed was that during the first
few days of trading, the broad Straits Times Index (STI) had
black candles for four out of five days.
In his analysis over the years, Hu found that the yearly perform-
ance of the STI can be extrapolated from the first five days of
trading. He realised that this extrapolation had a 70 percent
probability of being true.
Source: FactSet, candlestick chart of the STI in the first few
days of 2014 trading
A quick screening of the past two years revealed that Hu’s as-
sertion seems to bear some weight. In the beginning of 2013,
the STI had black candles for four out of five days while in
2012, the STI had white candles for four out of five days.
Coincidentally, the STI recorded double digit growth by the end
of 2012 while by the end of 2013, the STI barely managed to
eke out growth.
In Agreement With Goldman And The
Two Morgans
With this much foreboding, I asked Hu if he agreed with an
equally pessimistic report on emerging markets by three top US
banks. Without hesitating, Hu replied with a resounding yes.

6
He mentioned that back in 2003, he had written that the decade
to follow would result in wealth accumulation in which asset
prices will appreciate. Except for the Great Recession of 2008/
09, asset prices did appreciate.
However, from 2014 onwards, Hu feels that the decade to fol-
low will be that of wealth depreciation. He feels that asset
prices are currently in the overpriced region and will have to cor-
rect.
In particular, the following two to three years will see price cor-
rections that will hurt. Immensely. Given that the US is expected
to start increasing interest rates in 2015, Hu feels that the sec-
ond half of 2014 and 2015 will prove to be immensely challeng-
ing for traders or investors who are holding on to assets.
Cash Will Be King
Conversely, Hu said that investors or traders who are sitting on
hoards of cash will stand to benefit from the price correction.
However, Hu cautions that such value investments will be long
term and investors who value invest should not be eager to
cash out.
Value investing is a form of investing in which investors buy
oversold or underpriced assets. High profile proponents of
value investing include the Oracle of Omaha, Warren Buffett as
well as Benjamin Graham.
But as so often repeated by Hu during his seminar as well as
during the interview with me, caution should reign supreme in
investors’ minds. In the year of the horse, it is pertinent that in-
vestors not fall off the horse’s back in the search for yield and
returns. Hence, hold onto your cash tightly and only invest after
you have done your homework.
Hu Li Yang is one of the most popular investment and finance
experts among Chinese from all over the world. He is widely ac-
credited with bringing Wall Street terms to the orient. He has ac-
curately analysed and predicted various global financial trends
and is well-received by retail investors.

7
As we gallop into the year of the horse, based on the China al-
manac, one of the sure signs we are seeing this year is the
gradual recovery of major economies worldwide supported by
better numbers and data, suggesting that we are nearing the
light at the end of the tunnel after sinking into the global finan-
cial crisis five years ago.
According to the International Monetary Fund (IMF), global
growth is projected to be better this year at 3.7 percent, up from
3 percent in 2013.
The World Bank is also raising its global growth forecasts as
easing of austerity policies in advanced economies supports
their recovery, boosting prospects for emerging markets’ ex-
ports. It expects the world economy to expand 3.2 percent this
year, compared to a June projection of 3 percent and up from
2.4 percent in 2013.
On the developed economies, IMF estimates growth to con-
tinue on an increasing trajectory from 1.3 percent in 2012 and
1.5 percent in 2013 to improve further to 2.5 percent in 2014,
while the rest of Asia is also expected to improve to 5.4 percent
in 2014 from 4.8 percent in 2013.
Let us explore some of the major themes that will be surround-
ing the developed economies this year.
United States
In the US, a continuing theme from last year is the tapering of
the US$85 billion bond-buying programme, which has been set
in motion beginning in January 2014. The Federal Reserve
(Fed) has launched the cut back on its asset purchases by
US$10 billion, which would be gradually increased if the eco-
nomic recovery holds.
This move could likely see interest rates climb in later part of
2014 although the Fed has pledged not to consider raising its
benchmark interest rate until the unemployment rate has fallen
to at least 6.5 percent. That aside, the improving economy will
also likely help boost the US dollar.
The new Fed Chair, Janet Yellen, is hopeful of a stronger
growth in US this year, with gross domestic product (GDP)
growth rate to accelerate to 3 percent or more and the persis-
tently low inflation to move up towards the central bank’s target
of 2 percent annual inflation.
Section 2
Developed Markets
To Regain Luster?

-9
-6.75
-4.5
-2.25
0
2.25
4.5
6.75
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13
US Eurozone Japan
Sources: US Bureau of Economic Analysis, Eurostat,
Cabinet Office of Japan
Chart on the quarterly GDP growth of US, Eurozone and Japan from 2008 to 2013.

9
The strengthening of the world’s largest economy may be
enough to rally equities in the US and abroad, according to
head of global strategy and research at Pavilion Global Markets
in Montreal.
Eurozone
Despite lingering debt issues and high unemployment, the out-
look for Eurozone is improving where the Purchasing Manag-
ers’ Index is on an uptrend, signaling broad-based manufactur-
ing improvement.
Further signaling its course is on a gradual economic turn-
around, the Eurozone achieved two successive quarters of ex-
pansion in 3Q13, ending the longest contraction in continental
Europe in over 40 years.
3Q13 GDP grew only 0.1 percent quarter-on-quarter but lower
than the 0.3 percent growth rate posted in 2Q13. This was, how-
ever, supported by a stronger domestic demand with both pri-
vate consumption and investment growing mildly.
Nonetheless, the recovery remains brittle given the record un-
employment and low inflation. The spotlight remains on the
European Central Bank for fresh monetary stimulus, should de-
flationary risks intensify.
Japan
Japan’s economy has improved dramatically since Prime Minis-
ter Shinzo Abe took office and ‘Abenomics’ could likely end Ja-
pan’s two decades of deflation after driving the Nikkei 225 up
substantially in 2013.
Nonetheless, 2014 would likely continue to see Japan balanc-
ing a fine line with ‘Abenomics’ and tax hike to rein in debts as
well as its fiscal reforms to transform the stimulus-based recov-
ery into a sustainable long-term growth.
Japan’s outlook is likely to be shaped by the consumption tax
hike come April.
A double-edged sword, this hike would help raise revenue and
prove that Japan is committed to fiscal reform but it may also
be a drag on the economy. However, the effect would be cush-
ioned by a 5.5 trillion yen stimulus package and a reduction in
corporate tax revenue.

10
While the developed markets are enjoying a steady recovery,
how will the actions taken by the developed world implicate
emerging markets this year?
According to Schroders, as a whole, emerging markets have lit-
tle to fear about the US quantitative easing, as they enjoy, in ag-
gregate, a current account surplus and as a group, are not reli-
ant on external financing.
However, the ‘fragile five’ countries – Brazil, India, Indonesia,
South Africa and Turkey, which have substantial current ac-
count deficit, would suffer some currency weakness.
Although their relatively low levels of external indebtedness
compared to past crisis levels should help them avoid any se-
vere negative consequences.
For 2014, the asset management house views that emerging
market stocks are currently trading cheaply which suggest that
bad news have been discounted and factored into current stock
prices.
Therefore, they expect emerging markets to perform better,
both in absolute terms and relative to developed markets, com-
pared to their performance in 2013.
China
China, part of the ‘fab four’ group of emerging countries, has lit-
tle to fear about the US quantitative easing as it does not rely
heavily on foreign capital inflows to fund domestic growth,
though the strengthening of the US dollar might minimally affect
trade and capital flows.
Evidently, China’s economic momentum slowed in 4Q13, as
manufacturing output and investment spending fell in Decem-
ber last year.
GDP increased 7.7 percent for the quarter year-on-year, accord-
ing to the National Bureau of Statistics of China, compared with
7.8 percent in 3Q13.
Section 3
Emerging Markets
Strong Enough,
But Could Still
Face Issues

11
For the full-year, GDP expanded 7.7 percent in 2013, the same
pace as in 2012, and is forecast to grow 7.4 percent this year.
While China is at a stage of transition from an export driven
country to a consumer based country, its slowdown presents
the greatest systemic risk to commodity exporting nations such
as Indonesia, Australia, Brazil and Canada.
And within this group, the hardest hit would be those emerging
countries, which are less diversified and has less developed
economic structures.
Indonesia
In Indonesia, slower trade with China added on to a pullback of
easy money in the US could exert more pressure on the trade
balance, causing the Indonesia rupiah to depreciate substan-
tially, thus triggering a potential capital outflow.
This could force the Bank of Indonesia to implement significant
interest rate hikes, which would in turn dampen consumer and
investment spending.
The Southeast Asian nation’s current account deficit swelled to
a record 4.4 percent in 2Q13, weakening investor confidence
just as the Fed showed signs to curb monetary stimulus that fu-
eled demand for emerging market assets.
The Indonesia rupiah as a result fell to its lowest at 12,278 ru-
piah per US dollar on 7 January.
Since then, the Indonesian currency has rallied to 12,120 ru-
piah per US dollar on 16 January on news that Indonesia
posted a trade surplus of $777 million in November last year as
imports fell 11 percent, the most in four years.
The IMF predicts Southeast Asia’s biggest economy will grow
5.5 percent this year, compared with an average 5.1 percent ex-
pansion for emerging nations.

2
In this chapter, we will take
a closer look at two major
sector plays in the
Singapore stock market.
• Oil and Gas
• Consumables and Retail
How did these sectors fare
in 2013?
Most importantly, what
potential catalysts are
there that could underpin
growth in each sector?
Sector Outlook

13
Singapore’s Oil And Gas, More Than
Just Drilling
Undoubtedly, every developing country in this world needs oil
and gas. But did you know that the world consumes at least
89.4 million barrels of oil daily and 3.3 trillion cubic meters of
natural gas in a year?
With the ever increasing human population and the expansion
of emerging markets, the oil and gas industry will always be ex-
panding to supply growing demand.
In order to do so, nonstop Exploration and Production (E&P)
processes have been on going. The is especially after discover-
ies of unconventional oil and gas ﬁelds in new territories.
Of course, when one speaks about the market of oil and gas
production, it comes down to the most fundamental way of sup-
port which is transportation of supplies and equipments, as well
as extraction.
Oil rigs and offshore support vessels (OSV) operate in many
ways to support E&P operations of offshore energy resources.
Developments
As the world continues to dabble wholeheartedly in exploration
and production of energy resources, interest in offshore support
Section 1
Oil And Gas - The
Continuance Of A
Love Affair

14
vessels (OSV) have been picking up along with increased de-
mands for high specification rigs.
Major developments in the high specification rigs industry have
primarily taken place in both the North Sea and the Barents
Sea. This could primarily be because of the adverse weather ex-
perienced by ships operating in those geographical regions.
Comparatively, rig demand has remained strong in most major
global markets even in times of economic stress. This was evi-
dent with high levels of marketed rigs under contract across
most rig types.
Demand eventually caused increasing rates in the deepwater
and jack-up segments as well as sustaining favourable day
rates in the ultra-deepwater segment.
As the booming industry sparks interest from more investors,
spending pervading through the value chain has improved char-
ter rates and vessel utilization levels.
At the same time, offshore construction, installation and subsea
activities are picking up and in turn benefiting offshore ship-
yards and oilfield services companies.
Catalysts For 2014
Stepping into 2014, there are multiple streams of progression in
the oil and gas industry to keep one’s eyes on. However, we
would like to bring your focus to 3 major catalysts.
1. Rising demand compelling oil and gas companies into
deeper searches thereby investing in higher technology
and younger fleets.
Global trends are pointing towards a buoyant OSV market.
Upon depletion of onshore oil, new oil discoveries were 28 per-
cent made in deepwater and 49 percent in ultra-deepwater.
Source: FactSet, chart on the price of crude oil.

15
Rig utilisation has reached a point where day rates are facing
upward pressure and rig owners are looking to buy more rigs.
This increase in demand of high specification rigs would directly
translate into higher demand for OSVs as well as younger fleets
that will cater to increasingly harsh operating environments.
2. Gulf of Mexico
The bullishness around Mexico is head-on strong. PEMEX (Pe-
tróleos Mexicanos), the Mexican state-owned petroleum com-
pany, has ten tenders outstanding for integrated project man-
agement that would start in 2014.
These tenders are regarded as mega contracts by the industry
which will boost activity levels with approximately more than 50
rigs required.
Vital to the industry’s capital structure, many analysts are posi-
tive that a constitutional reform in Mexico will break the monop-
oly on the oil and gas business and allow private capital to flow
in.
Although it may take several quarters, it is likely that these pri-
vate capital will go after the five shale plays in Mexico and deep
water activity.
3. Threat of the Chinese yards
In recent times, deepwater discoveries in Bohai Bay and South
China Sea coupled with potential shale opportunities in China
has brought concerns of ‘threat’ to industry players.
Going forward with industry trends, the Chinese government
has mentioned that ship and rig building will be one of the major
industrial pillars for the country.
However, the Chinese lack technical expertise in areas of shale
and deepwater activity. These would place Singapore in a
brighter light as companies here have a stronger edge when it
comes to deepwater semi-submersibles.

3%5%
5%
1%
12%
21%
26%
27%
Malaysia Indonesia
Vietnam Thailand
Cambodia Myanmar
Philippines Brunei
South East Asian platform estimated
capex by region [2011-2015]
Source: ISL
9%
5%
6%
11%
21%
48%
< 5 yrs 5 to 10 yrs
10 to 15 yrs 15 to 20 yrs
20 to 25 yrs > 25 yrs
Age profile of Offshore Vessels
Source: Mantrana Maritime Advisory

17
Sector Profile
In Singapore, where shopping has been so entrenched in the
lifestyles of many, it is touted to be one of the national pastimes
among locals.The rising population and influx of foreigners
have no doubt bolstered the retail industry and kept it in pace
with economic growth.
As the economy picks up, Singaporeans are earning higher in-
comes than before. This has boosted consumer sentiments
which attracted further business expansion in this country. The
Eurozone recovery has also shown expansion of European
brands into prime locations like Orchard Road.
Naturally, this has attracted more tourists spending for both busi-
ness and pleasure. There is no doubt that it has heightened re-
tail sales and will continue to boost the industry.
Over the years as the retail industry in Singapore shaped itself
into a well known shopping paradise, shoppers are also becom-
ing more aware of quality premiums in products.
This is particularly evident when it comes to health related prod-
ucts as consumers are more health conscious these days. It
was reported on PR Newswire that consumers in Singapore
spend up to 72 percent more on healthcare related products
and services.
Developments
Known as the financial hub of Asia and a shopping heaven, Sin-
gapore is recognized as the ideal place for international retail-
ers to seek space in.
Driven by strong demand and appetite for new retail space, the
market expanded exponentially in recent years. Since 2009, ap-
proximately 2.21 million square feet of new retail space was
added to total private retail supply.
However, as a small country, the lack of space has resulted in
the rise of rental rates and operation costs. Growing suburban
shopping areas are contributing a bulk of retail supply from out-
Section 2
Consumerism
2014: Banking On
Rising Affluence
And The Middle
Class

18
side the prime area of Orchard. This includes Marina Bay Shop-
pes, Resort World Sentosa, Rochester Mall and Changi City
Point.
With recent pandemics scare in the last few years, Singapore-
ans, like the rest of the world are becoming more sophisticated
at coping with potential health hazards.
Health and wellness retailers are spotting one of the fastest and
strongest growing retail channels in Singapore. According to
Euromonitor, the sector grew 5 percent last year to reach S$3.3
billion.
It also accounts for 11 percent of the country’s retail market.
Above all, the industry bucked the trend of negative growth
even amid the financial crisis of 2008-2009.
Catalysts for 2014
Looking into 2014, data points from both domestically and
abroad have indicated that consumer spending may not be as
forthcoming.
It is analysed that consumer’s concern over inflation impacts
and global economic issues may contribute to lower discretion-
ary spending. Revenue growth for the retail industry is expected
to be a tad more challenging.
However, some analysts believe that consumer confidence
should remain positive due to the healthy domestic economy
and rising household incomes and spending power. As Singa-
pore remains in the spotlight for international brands, tourism
and retail occupancy will continue to enjoy growth.
Retail supply is becoming more geographically diverse with de-
veloping suburban shopping areas. Projects with retail space
sold on strata titled basis will dominate the supply. Retail leas-
ing demand should also remain relatively steady, particularly
from international fast fashion retailers and F&B startups.
However, challenges remain. The implementation of the new la-
bour employment restrictions to promote less reliance on for-
eign labour have been rather punitive on most retail companies.

19
An overall increase in wage costs and operating expenses with
greater competitive pressures, may lead to an eventual further
compression of margins.
Despite this, we believe that the retail industry will be resilient in
2014 given the growing middle class both in Singapore and the
region. This is particularly so for health-related products that will
be largely protected from any possible global economic shocks.

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3
Probably something most
investors are interested in.
Stock picks for 2014.
Join the Shares Investment
team as they unravel
potential gems for 2014.
Take note of individual
corporate developments as
well as what is possibly in
store for these counters in
2014.
Stock Picks For
2014

22
Corporate Profile
CapitaLand is one of Asia’s largest real estate companies with
operations in Australia, Europe and other Asian countries and is
focused on its core markets of Singapore and China.
The company’s diversified real estate portfolio primarily in-
cludes homes, offices, shopping malls, serviced residences and
mixed developments, spanning over more than 110 cities in
over 20 countries.
The company also has one of the largest real estate fund man-
agement businesses with assets located in Asia.
The listed entities of the CapitaLand Group include Australand,
CapitaMalls Asia, Ascott Residence Trust, CapitaCommercial
Trust, CapitaMall Trust, CapitaMalls Malaysia Trust, CapitaRe-
tail China Trust, and Quill Capita Trust.
Latest Developments
! •! CapitaLand has streamlined its organisation structure
into four main businesses, CapitaLand Singapore, CapitaLand
China, CapitaMalls Asia and The Ascott to create greater focus
and deepen expertise and maximise international network for
its businesses.
Section 1
CapitaLand
Former market darling
now poised for greater
things abroad.
Stock Information Details
Listing Singapore Exchange (Mainboard)
Ticker Symbol C31
Number Of Shares Outstanding 4,257.470 million
Last Done $2.930 (15 January 2014)
Free Float 59.9%
Major Shareholders (percentage
held)
Temasek Holdings (39.0%)
Market Capitalisation $12,474.4 million

23
! •! Granted options to Sun Venture Holdings and Low
Keng Huat to buy Westgate Tower for $579.4 million, which can
be exercised by 24 January 2014.
! •! Sold a 20 percent stake in Australand following the
secondary placement at A$3.685/share, amounting to $485.3
million in proceeds to be deployed for new opportunities in Sin-
gapore and China.
! •! Development of an iconic mixed-use development,
Project Jewel, worth $1.5 billion at Changi Airport through Capi-
taMalls Asia.
Key Catalysts:
! •! Positive long-term prospects of real estate markets in
Singapore and China, underpinned by strong economic funda-
mentals, growing population, rising disposable income and im-
proving consumption patterns.
! •! Change of key management from 2013 to bring mean-
ingful impact, with new chief executive articulating a new ROE
target of 8 percent to 12 percent and stronger emphasis on
China to up exposure to 50 percent from 39 percent currently.
! •! Singapore’s property market remains supported by
resilient economy and policies to support population growth and
given a backlog of demand from undersupply in previous years.
! •! Despite a reduction in office occupancy rate with an
increased office supply, there was an uptick in the Grade A of-
fice market rents by 0.6 percent to 1.9 percent to a rental range
between $9.14 to $10.45 per square foot in 3Q13. Furthermore,
CapitaGreen, slated for completion by end-2014 is the only new
Grade A development in Raffles Place over the next three
years, which will generate high interest.
! •! Possible higher dividend in FY14 following the reduc-
tion in its stake in Australand.

FY12
FY11
FY10
FY09
FY08
0 1250 2500 3750 5000
2752
2957
3571
3103
3400
1260
1053
1273
1057
930
PATMI (S$’m)
Revenue (S$’m)
1%6%
4%
18%
36%
35%
Singapore Australia
China Other Asia
Europe Others

25
Corporate Profile
Development Bank of Singapore (DBS) Group Holdings was in-
corporated in 1968 as a domestic bank to provide financial serv-
ices across different industries in Singapore, for the purpose of
Singapore’s economic development and industrialisation.
Across the years, DBS has transformed itself into a regional fi-
nancial institution, providing a wide range of banking and fi-
nance services to serve customers in Hong Kong, China, Tai-
wan, Indonesia, India, Malaysia, Philippines, Middle East and
Thailand.
In Singapore, DBS operates under the brands of DBS and
POSB, where it has 89 branches and 1,100 ATMs island-wide.
Latest Developments
! •! DBS’ 3Q13 results were in-line with market expecta-
tions arising from sound underlying fundamentals. Results
could have been better in absence of weakness in treasury in-
come caused by strategies implemented while pre-empting for
QE tapering by the Federal Reserve, such strategies appeared
to have paid off as seen with its most liquid Singapore-dollar bal-
ance sheet among the three local banks.
! •! With Hong Kong being the second largest revenue
contributor after Singapore, DBS is seen to further fortify its eco-
Section 2
DBS Group
Holdings
Local banking giant
expands reach beyond
local shores.
Ticker Symbol D05
Number of Shares Outstanding 2,445.2 million
Free Float 70.5%
held)
Temasek Holdings (29.0%)

26
nomic moat in Hong Kong with a series of improvisation includ-
ing the strengthening of its management team in the country
and improvement of customer segmentation to provide better
targeted product offerings to mid-caps companies, small-
medium sized companies as well as affluent customers.
! •! Following the divestment of its remaining 9.9 percent
stake in Bank of The Philippine Islands, the move is in line with
DBS’ commitment to re-calibrate focus on its core markets of
Singapore, Hong Kong, Taiwan, India and Indonesia. In addi-
tion, having generated 15 quarters of consistently strong earn-
ings despite headwinds such as the banking sector’s compres-
sion of net interest margins, DBS is expected to remain resilient
and well-positioned in the face of uncertainties.
Key Catalysts
! •! By far and large, the banking sector as a whole will
benefit from the eventual rise in interest rates. Out of the three
local banks, DBS will be the key beneficiary in the event of inter-
est rates increase owing largely to its strongest deposit fran-
chise out of the other two local banks as well as its most liquid
Singapore-dollar balance sheet supported by the lowest loan-
to-deposit ratio (DBS: 75 percent, OCBC: 85 percent, UOB: 95
percent).
! •! Based on P/E, P/B and dividend yield of 10.7, 1.3
and 3.3 percent respectively, DBS is relatively undervalued as
compared to UOB (11.6, 1.4 and 2.9 percent) and OCBC (12.9,
1.5 and 3.5 percent). DBS’ attractive valuations are expected to
boost share price to the levels of its competitors granted by the
gradual global economic recovery.
! •! Despite absolute amounts in non-performing loan
(NPL) rose 12 percent in 9M13, contributed mainly from the In-
dian mid-cap space, DBS takes the view that the pace of new
NPL formation has peaked and expects its NPL position to im-
prove moving forward.

FY12
FY11
FY10
FY09
FY08
0 3750 7500 11250 15000
8122
6114
5699
6591
7670
1929
2041
1632
3035
3800
PATMI (S$’m)
Interest Income(S$’m)
4%
7%
8%
19%
62%
Singapore
Hong Kong
Rest of China
South and South-East Asia
Rest of the World

28
Corporate Profile
Headquartered in Hong Kong, Genting Hong Kong has a pres-
ence in more than 20 locations worldwide with offices and repre-
sentation in Oceania, Asia, Europe, Middle East and North
America.
Genting Hong Kong is a leading global leisure, entertainment
and hospitality enterprise, with core competences in both land
and sea-based businesses. Its business segments include Star
Cruises, Norwegian Cruise Line, Resorts World Manila.
Incorporated in September 1993, Genting Hong Kong operates
its fleet under Star Cruises, to take on a bold initiative to grow
the Asia-Pacific region as an international cruise destination.
Star Cruises with Norwegian Cruise Line is the third largest
cruise operator in the world, with a combined fleet of 19 ships
cruising to over 200 destinations, offering approximately 39,000
lower berths.
Resorts World Manila is Genting Hong Kong’s first foray in a
land-based attraction. The Philippines resort opened its doors
to the public in August 2009 and is the first one-stop vacation
spot for top notch entertainment and world-class leisure alterna-
tives in the country.
Section 3
Genting Hong
Kong
Key catalysts banking on
Asia’s growth as an
economic powerhouse.
Listing Hong Kong Stock Exchange
Ticker Symbol S21 (SGX GlobalQuote)
Free Float 20.0%
held)
Lim Kok Thay (57.5%), Genting
Malaysia (18.4%)

29
Latest Development
! •! Star Cruises’ 1H13 revenue showed a healthy 22.9
percent increase from new routes based out of Shanghai, but it
was not enough to offset the startup costs involved and the
added depreciation of the Gemini. 1H13, it does not seem that
Resorts World Manila’s (RWM) business was affected by com-
petition from the new Solaire Casino that opened in 2Q13, as it
raked in healthy top and bottom line.
! •! Genting Hong Kong (GHK) is expected to receive at
least US$375 million from the recent secondary share place-
ment by its subsidiary, Norwegian Cruise Lines (NCL). GHK’s
stake in NCL should fall from 37.5 percent to 32.2 percent.
! •! Following the US$150 million received in pre-initial
public offering dividends from Travellers, the US$331 million
from NCL’s secondary placement in August 2013 and an ex-
pected US$375 million from this placement, GHK is estimated
to have about US$1.3 billion in cash. Currently, it has no new
projects and intends to use the cash to shore up its balance
sheet.
Key Catalysts
! •! As part of the third phase of RWM’s expansion pro-
ject, two new global brand hotels, Sheraton Hotel and Hilton Ho-
tels & Resorts are set to rise at Newport City, along with second
phase extensions for Maxims Hotel and Marriott Hotel Manila
as well as additional gaming area within the property.
! •! GHK ordered a new US$957 million mega ship for
Star Cruises increasing its berth capacity in Asia by 44 percent.
The ship will be the biggest cruise ship operating in Asia with
1,600 cabins and a carrying capacity of 4,500 passengers. It is
estimated that the new cruise ship would have 200 to 300 gam-
ing tables.
! •! The new cruise ship is effectively a ﬂoating integrated
resort as it will also feature 1,000 square metres of duty free re-
tail space – which is GHK’s new emphasis to boost ancillary in-
come to complement gaming revenue.

FY12
FY11
FY10
FY09
FY08
-1500 0 1500 3000 4500 6000
3400
2921
3021
4013
4037
-619.1
-196.4
527.2
1418.4
1424.9
PATMI (HK$’m)
Revenue (HK$’m)

31
Corporate Proﬁle
Nam Cheong is Malaysia’s largest shipbuilder of OSVs; the
world’s largest OSV builder with a 10 percent share of the
global shallow-water market.
It specialises in building small-to-mid sized AHTS, PSVs and ac-
commodation barges.
The company is the second largest OSV shipbuilder east of the
Suez Canal, and focuses on the construction and engineering
of complex, sophisticated and environmentally friendly OSVs
that are equipped with the latest technology for use in the off-
shore oil and gas exploration and production and oil services
industries.
Nam Cheong’s shipbuilding business is also complemented by
its vessel chartering operations. It currently has a ﬂeet of about
14 vessels which consists of nine SSVs, two AHTS, two landing
crafts, and one accommodation vessel.
Latest Developments
! •! Nam Cheong’s build-to-stock (BTS) programme is
growing in tandem with the global push towards offshore explo-
ration and production in the oil and gas industry, thus alleviating
the key risk of the company being unable to sell off vessels un-
der its BTS model.
Section 4
Nam Cheong
World’s Oil and Gas
demand lifts Malaysian
shipbuilder.
Ticker Symbol N4E
Free Float 42.0%
held)
SK Tiong Enterprise (27.3%),
Hung Yung Enterprise (15.2%), Su
Kouk Tiong (7.8%)
Market Capitalisation $694.0 million

32
! •! Year-to-date sales of 20 vessels worth approximately
RM1.34 billion have surpassed 2012’s 21 vessel sales valued
at approximately RM1.31 billion.
! •! The firm’s robust orders over the last 18 months have
more than doubled its current orderbook to RM1.7 billion. At pre-
sent, orderbook comprising 25 vessels to be delivered in 4Q13,
FY14 and FY15 respectively provides good earnings visibility.
! •! Nam Cheong is estimated to deliver 19 vessels in
FY13, and FY14 shipbuilding programme is well-balanced with
different types of vessels. In addition, a total of 16 vessels out
of the 28 deliveries due for 2014 have already been sold.
Key Catalysts
! •! Nam Cheong would be a key beneficiary under Petro-
nas’ RM300 billion capital expenditure programme. Nam
Cheong holds 75 percent of the Malaysian market and stands
to reap the most benefits from the 80 percent increase in Petro-
nas’ planned spending.
! •! Global trends point towards a buoyant offshore sup-
port vessel (OSV) market in the medium-term. Rig utilisation
has reached a point where the day rates are facing upward
pressure and rig owners are looking to buy more rigs. The in-
crease in the number of rigs would directly translate into higher
direct demand for OSVs.
! •! Further upside to earnings forecasts if Nam Cheong
clinches built-to-order vessels, as these typically command
higher margins. In addition, as Nam Cheong builds many of its
vessels in China, attractive payment terms offered by Chinese
shipyards remain a key factor.

FY12
FY11
0 125 250 375 500
249.2
354.7
38.3
55.26
PATMI (S$’m)
5%
7%
9%
15%
64%
Asia Africa
Europe Middle East
Americas

34
Corporate Profile
OSIM International creates, designs, develops and markets
well-being and healthy lifestyle and nutrition products through
its specialty retail outlets worldwide.
Its products include massage chairs, foot massagers, neck and
shoulder massages, head massagers, fitness equipment, diag-
nostic equipment vitamin and supplements, and luxury tea.
The company has a portfolio of brands including OSIM, Rich-
Life, GNC, TWG Tea and Brookstone.
In an independent survey conducted by an international market
research company and supported by International Enterprise
Singapore, OSIM came up as the number one healthy lifestyle
products brand in consumers’ minds across Asia.
The research result embraces Asian-wide consumer support of
OSIM’s mission – bringing well-being and healthy lifestyle to
customers, inspiring to live their life to the fullest.
Latest Developments
! •! OSIM International achieved consistent growth with
19 consecutive quarters profit growth backed by product innova-
tion and productivity. New products such as uAngel and uInfin-
ity continue to drive positive earnings given their good take-up
rates.
Section 5
OSIM International
OSIM banks on Asia’s
rising middle class and
consumerism.
Listing Hong Kong Stock Exchange
Ticker Symbol S21 (SGX GlobalQuote)
Free Float 20.0%
held)
Lim Kok Thay (57.5%), Genting
Malaysia (18.4%)

35
! •! With 596 OSIM outlets, and currently in 45 cities with
266 OSIM outlets in China, it is targeting to open another 20 to
30 OSIM outlets in the coming year. OSIM’s strong positioning
is also on track to creating long-term demand and brand loyalty.
! •! OSIM is planning on expanding its network of TWG
Tea outlets in Singapore, Korea, Thailand and Malaysia, and
has recently incorporated three new subsidiaries in Shanghai,
Taiwan and Macau, reflecting its growth plans in these places.
Key Catalysts
! •! OSIM can ride on the region’s growing consumption
patterns, especially with the number of households with high an-
nual disposable income expected to rise to 18 million by 2020
from 11 million in 2010 (China accounting for most of the gain).
! •! Its marketing strategy with tier pricing for different
market segments while riding on celebrity appeal will help
OSIM capture existing and new opportunities.
! •! OSIM’s increased stake in TWG Tea Company to
53.7 percent may become a meaningful earnings contributor in
the medium term as each TWG outlet is profitable with annual
3-5 percent yoy same-store sales.
! •! Strong cash flow and low working capital needs en-
able OSIM to pay out healthy dividends, undertake share buy-
backs and be on the lookout for potential brand acquisitions.

FY12
FY11
FY10
FY09
FY08
-175 0 175 350 525 700
456.7
476.8
508.7
553.7
601.7
-99.44
23.33
50.07
69.06
86.93
PATMI (S$’m)
6%
38%
56%
North Asia
South Asia
America/EMEA/Oceania

xxxviii
Tradeable would like to acknowledge the contributions
of the following persons:
Hu Li Yang - Investment guru and speaker
Debbie - Hu Li Yang’s assistant
Daxx Chong - Senior Research Editor, Shares
Investment
Ong Qiuying - Senior Research Executive, Shares
Investment
Nicholas Tan - Research Executive, Shares Investment
Peter Ng - Research Assistant, Shares Investment
Kyaw Myo Htut - Web Developer, Pioneers & Leaders
eMedia
And the translator team from Shares Investment as
well as anyone else who might have contributed in part
to the completion of the e-book that are not mentioned
above.
Acknowledgements

xxxix
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