31 Oct 16, 8.15am/11.15am Morning Call/Webinar · 10/31/2016 · Mar 2017 (close) May 2017 (re-open) 9,800 sqft (Old) 25,000 sqft (New) Closed for A&E works to the building. Previously

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TopicsMapletree Industrial Trust

Raffles Medical Group

Sheng Siong Group

CapitaLand Retail China Trust

OCBC

UOB

Sembcorp Marine Ltd

Apple Inc

Western Digital Corp

31 Oct 16, 8.15am/11.15am Morning Call/Webinar



Disclaimer

The information contained in this presentation has been obtained from public sources which Phillip Securities Pte Ltd (“PSPL”) has no reason to

believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in this

presentation are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or

warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any

such information or Research contained in this presentation is subject to change, and PSPL shall not have any responsibility to maintain the

information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be

liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made

available, even if it has been advised of the possibility of such damages.

This presentation is intended for general circulation only and does not take into account the specific investment objectives, financial situation or

particular needs of any particular person.

You should seek advice from a financial adviser regarding the suitability of the investment product, taking into account your specific investment

objectives, financial situation or particular needs, before making a commitment to invest in such products.



Mapletree Industrial Trust

Momentum in Hi-Tech Buildings segment

Richard Leow

Phillip Securities Research Pte Ltd

31 October 2016



4

Occupancy remains healthy, but dips marginally; average passing rent

maintained

93.0%→92.5%, S$1.92 psf/month

Rental reversions among 4 segments ranged between -2.3% to +2.7%

Portfolio weighted average: +0.7%

Maintaining our cautious stance over FY18 lease expiry profile

WALE 2.8 yrs

6.8% expiring in 2HFY17 "business as usual"

32.8% by NLA expiring in FY18 and is a concern to us

Mapletree Industrial Trust(Neutral, TP:S$1.74, FY17e DPU: 11.14 cents (6.5%), Last:S$1.725)Results at a glance

(SGD mn) 2Q17 2Q16 yoy (%) Comments

Gross revenue 84.21 82.74 1.8 Higher rental rates across all property segments, higher occupancies in Hi-Tech

Buildings

Net property income 63.63 61.03 4.3 Lower property maintenance expenses , uti l i ties and property taxes ; offset

by higher marketing commiss ion

Distributable income 50.59 48.91 3.4 Higher manager's management fees and borrowing costs

DPU (Cents) 2.83 2.79 1.4 1.8% larger Unitholder base

Source: Company, Phi l l ip Securi ties Research (Singapore)



5

Organic growth strategies of BTS and AEI projects are on track

Phase One of HP BTS obtained TOP in October

Rental contribution commence 1 December

Phase Two complete six months later

Construction for Kallang Basin 4 AEI commenced in August

Target completion in 1Q 2018

0% pre-committed, better visibility six months prior to completion

Strong balance sheet favourable for inorganic growth

Lower gearing: 29.0%

Firepower to make acquisitions

Mapletree Industrial Trust(Neutral, TP:S$1.74, FY17e DPU: 11.14 cents (6.5%), Last:S$1.725)



Raffles Medical Group

New medical centres gaining traction;

MCH continues to lag

Soh Lin Sin


31 October 2016



7

MCH continues to drive topline: ex-MCH, Revenue +7.9% yoy

Staff costs compressed operating margin: 18.2% in 3Q15 vs 15.6% in 3Q16

↑Staff cost % revenue: with MCH 51.5%; ex-MCH 50.1% (still above 50%)

Cost rationalisation in MCH could take some time, and continues to recruit

to cater for the expanding business operations

New medical centres gaining traction; MCH yet to b/even

RafflesHospital Extension (2017) and the Shanghai New Bund International

Hospital (2018) to support growth, domestically and regionally

Raffles Medical Group(▲Accumulate, ◄►TP:$1.62, Last:$1.51)

SGD mn 3Q16 3Q15 y-y(%) Comments

Revenue 119.3 101.5 17.5 Growth in both Healthcare Services (+39.7%) and

Hospital Services (+6.0%)

EBITDA 22.3 21.7 2.7 Higher staff costs

Operating profits 18.6 18.5 0.3 Higher depreciation expenses

PBT 18.8 18.8 0.2

Net income, reported 16.2 15.6 4.0

Net income, adj. 16.2 15.6 4.0

Source: Company, Phillip Securities Research (Singapore)



Sheng Siong Group

Steady margin despite consumer sentiment

Soh Lin Sin


31 October 2016



9

Cautious consumer sentiment could extend into FY17, dampening sales

New stores growth lower than expectation; SSSG resumed its

contractionary trend in 3Q16, 2Q16 is the only positive quarter for SSSG

Management seeking new stores to mitigate closure of two major stores in

FY17; Seven new supermarkets units will be up for bidding

Stores at Woodlands Blk 6A and the Verge contribute c.10% of revenue

Successful bidding of new stores would be a catalyst for re-rating.

Steady gross margin at ~25% and extend into FY17F

Favourable drivers for high margin to persist

Catalyst for higher margin will be an improvement of product mix

Sheng Siong Group(◄►Accumulate, ▲TP:$1.13 (prev. $1.10), Last:$1.04)

(SGD mn) 3Q16 3Q15 y-y (%) Comments

Revenue 202.4 200.0 1.2% New stores +5.3%, SSSG -1.15%, temporary closure of

Loyang store -2.95%

Gross profit 52.5 48.7 7.8% Higher margin on lower input prices

EBITDA 21.1 18.8 12.2%

Net profit 15.7 14.5 8.2%

Source: Company, Phillip Securities Research Pte Ltd estimates



Table 1: Changes in Retail Space/ Business Area

Location Targeted / Effective

Date Total Gross Floor

Area Remarks

A. One New Store in 3Q16

1. Yishun Junction 9 September 16 15,500 sqft Total store count of 42 stores as at 30 September 2016, or +3.5% quarter-on-quarter (“qoq”) in retail area, after taking into account of the store at Loyang Point which was temporarily closed on 15 April 2016.

B. Maiden Store Outside Singapore

2. Basement of a shopping mall in Kunming, China

2Q17 54,400 sqft Completion of construction of the mall has been delayed. SSG has not been able to obtain a firm handover date from the landlord. The expected date of commencement may be further postponed to the second quarter of 2017, missing the 2017 Chinese New Year sales. Nonetheless, Management envisaged the China store to breakeven within two years of operation.

C. Interim Closure for A&E and to be Re-opened with Larger Retail Area

3. Loyang Point

15 Apr 2016 (closed) 1Q17 (re-open)

6,000 sqft (Old) 8,000 sqft (New)

Closed for renovation work by HDB and will be re-located to another new unit in the building with additional 2,000 sqft

May be able to open in early 2017 to capture Chinese New Year sales.

4. Second floor @ Blk 506 Tampines Central

Mar 2017 (close) May 2017 (re-open)

9,800 sqft (Old) 25,000 sqft (New)

Closed for A&E works to the building.

Previously target to close in 4Q16 and to re-open in Jan 2017. Delay to avoid closure during Chinese New Year period.

D. Close

5. Woodlands Blk 6A June 2017 (close) 41,500 sqft HDB redeveloping the area.

Key store contributing between 5% and 10% to total revenue.

6. The Verge 2017 45,036 sqft Pending finalisation of acquisition deal by Lum Chang Holding.

Nonetheless, lease slated to expire by March 2017.

E. Other

7. Land adjacent to central warehouse

To be completed by end of 2017

1,800 sqm Construction costs is estimated to be c.S$15mn and expected to spread over FY17-18F.

Source: Company, PSR

10

Sheng Siong Group(◄►Accumulate, ▲TP:$1.13 (prev. $1.10), Last:$1.04)



CapitaLand Retail China Trust

Weaker RMB and higher property tax provisions for Beijing

properties dented earnings amidst stable mall operations

Tan Dehong


31 October 2016



12

New taxes hit earnings, Otherwise mall operations largely stable

New Property Tax provisions and Value-Added Tax (VAT) impacted earnings.

Portfolio occupancy stable at 95.2% from FY15 (95.1%)

New acquisition Galleria to boost portfolio earnings from 1 Oct 2016.

CapitaLand Retail China Trust(Accumulate, TP:$1.62, FY16e DPU:10.1 cents (6.7%), Last:S$1.51)

Results at a glance

(SGD mn) 3QFY16 3QFY15 y/y (%) Comments

Gross Revenue 50.6 55.3 -8.5%

Net property income 32.8 35.2 -6.9%

Distributable income 20.6 22.3 -7.6%

DPU (Cents) 2.36 2.64 -10.6% Increased number of issued units


Weaker RMB against SGD. Gross Revenue declined 1.2% in RMB terms,

owing to new 5% VAT implemented from 1 May 2016, which would be offset

from revenue.

Mainly due to VAT, higher property tax provisions and weaker RMB against

SGD. Gained 0.6% in RMB terms.



13

Light at the end of the tunnel for CapitaMall Minzhongleyuan

New subway line to open 28 December 2016. Mall occupancy gradually

recovering to 80.1% from 70% last quarter

Portfolio tenant sales stabilizing at low single digits growth

Tenant Sales yoy growth (Q1:1%, Q2: 1.2%, Q3: 1.8%)

Remain confident of manager’s ability to attract quality tenants

Ability to attract quality tenants to improve tenant sales and mall rental


New Chengdu acquisition to boost earnings from October 2016


2016 New Tenants Mall

Sales Growth over

previous tenant

Binkeke (滨可可) CapitaMall Qibao >70%

Xiao Niu Niu (小牛牛) CapitaMall Xizhimen >100%

PANDORA and BOY LONDON CapitaMall Wangjing >100%

UNIQLO CapitaMall Grand Canyon >95%



14

China Retail Sales




15

Name Mkt Cap (SGD mn) Price Dvd Yld Av. Cost of Debt P/B Gearing (%)

CAPITALAND RETAIL CHINA TRUST 1,330 1.56 6.58 2.90% 1.00 36.70

MAPLETREE GREATER CHINA COMM 2,965 1.08 6.88 2.87% 0.91 39.36

BHG RETAIL REIT 338 0.60 6.10 N.A 0.74 29.50

Source: Bloomberg, Phillip Securities Research (Singapore)

5

5.5

6

6.5

7

7.5

8

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Dividend Yield

DIVIDEND_YIELD Average +1S.D. -1S.D


0.4

0.6

0.8

1

1.2

1.4

1.6

Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

Price/NAV

PX_TO_BOOK_RATIO Average +1S.D. -1S.D +2S.D. +2S.D.





Oversea-Chinese Banking Corp

Performance boosted by Non-interest Income

Jeremy Teong


31 October 2016



17

Net Interest Income dragged unfavourable volume and rate dynamics q-o-q

Int. earning assets remain flat. Avg. Rates on interest earning assets fell 9bps. Avg. Rates on interest

bearing liabilities fell 3bps.

Strong Wealth Management and Credit Card performance

Ability to respond and offer thematic products to suit the need (eg. Yield play), OCBC 365 promotions

Life Assurance profit boost

Non-participating fund profit of S$83.9mn (3Q15: -S$5.7mn, 2Q16: S$27.1mn)

Gains from sale of properties

S$51mn gain (3Q15: S$15mn, 2Q16: S$7mn)

Oversea-Chinese Banking Corp(Maintain Neutral. Higher TP:S$8.25, previously S$8.14. Last:S$8.50)

Results at a glance

(SGD mn) 3Q16 3Q15 y-o-y (%) 2Q16 q-o-q (%) Comments

Net interest income 1,234 1,317 -6% 1,260 -2% NIMs -4bps y-o-y. Loans -1.9% y-o-y

Fees & Comm 428 408 5% 417 3% Higher Credit Cards and WM income

Insurance 199 98 103% 146 36% Higher profi t from l i fe assurance

Other NII 343 269 28% 225 52% Boosted by gains from sale of properties

Total Reveue 2,204 2,092 5% 2,048 8%

Expenses -953 -900 6% -932 2%

PATMI 943 902 5% 885 7%




United Overseas Bank Limited

Posturing for more returns from higher risks

Jeremy Teong


31 October 2016



19

Net interest income stable

Avg. Rates on interest earning assets fell 3bps. Avg. Rates on interest bearing liabilities fell 5bps.

Supported by 2.4% q-o-q customer loan growth, offset by lower interest rates on customer loans

Better yield on interbank balances which helped improve overall interest earning efficiency

Non-interest income lower y-o-y

one-off gains from sale of investment securities in 3Q15 offset by higher trading income from

customer FX trading activities

Higher risk taking

NPA secured mainly by shipping vessels had increased 12.8% q-o-q to S$804mn

Even larger jump in NPAs was registered for unsecured loans, up 27.9% q-o-q to S$1.606bn

United Overseas Bank Limited(Maintain Neutral. Lower TP:S$17.63, previously S$17.95. Last:S$18.63)

Results at a glance

(SGD mn) 3Q16 3Q15 y-o-y (%) 2Q16 q-o-q (%) Comments

NII 1,230 1,235 0% 1,211 2% Higher loans growth y-o-y, Lower NIM y-o-y

Fees & Comm 492 486 1% 475 4% Higher Fund Mgmt fees

Other Non Int Income 318 366 -13% 338 -6%Lower Net Gain from Inv Securi ties . Higher Net

Trading Income

Total Revenue 2,040 2,087 -2% 2,024 1%

Expenses 919 904 2% 927 -1%

Net Profit 791 858 -8% 801 -1%




Sembcorp Marine Ltd

Shrinking order book weakens profitability

Chen Guangzhi




21

Results at a glance

Net order book drying up without new businesses

New contracts secured: S$320mn in 9M16 vs S$2.9bn in 9M15

Order backlog: S$8.3bn YTD (S$3.1bn from Sete Brasil contracts)

Core business performance (9M16)

Rig building: S$740mn (9M15:S$.1.8bn) Floater: S$651 (9M15: S$604mn)

Offshore platform: S$916 (9M15:S$722mn) Repairs: S$350mn (9M15: S$397mn)

Cost cutting and debt reduction

Manpower cut: 8,000 since 2015

Net gearing: 1.03x from 1.1x in 1H16

Sembcorp Marine Ltd(Sell, ▼TP:S$0.87 (prev. S$1.14), Last:S$1.28)

(SGD mn) 9M16 9M15 y-y (%) Comments

Revenue 2,714.9 3,641.1 (25.4) Due mainly to the low revenue recognition from rig building

segment, resulting from delivery deferment and lower

repair business

Gross profit 258.0 458.9 (43.8) Due mainly to lower contribution from rig building projects,

which have higher margins than other projects

Operating proft 158.2 360.0 (56.1) The increasing FX losses due to revaluation of assets and

liabilities denominated in GBP and USD were partially relieved

by gains from hedging instruments

Net profit 44.5 253.6 (82.4) Due mainly to higher interest burden, resulting from the

increase in borrowings

Source: Company , Phillip Securities Research (Singapore)



Apple Inc

Apple ripens, still room to grow

Ho Kang Wei


31 October 2016



23

• Revenue down 9% yoy and Net Income down 18.97% yoy

• iPhones sold less but at higher ASPs

• China down, EM up

• 1 week of iPhone 7 sales

• Service revenue grew by 24% yoy

• App Store growing by 43%, other services up double digit

• Apple Pay transaction up 500% yoy

• Strong guidance for next quarter

• Guided USD 76-78bn

• Highest quarter ever

• Strong iPhone 7 demand and new Macbook

Apple Inc(Accumulate, TP: US$125.81, previous: US$114.74, Last close: US$114.48)

Y/E Sep, USD bn 4QFY16 3QFY16 4QFY15 qoq yoy

Revenue 46.9 42.4 51.5 10.6% -9.0%

Services Rev 6.3 6.0 5.1 5.8% 24.4%

Other Products Rev 2.4 2.2 3.0 6.9% -22.1%

iPhone Rev 28.2 24.0 32.2 17.1% -12.6%

iPad Rev 4.3 4.9 4.3 -12.7% -0.5%

Mac Rev 5.7 5.2 6.9 9.5% -16.6%



Western Digital Corp

Stronger HDD demand drives revenue

Ho Kang Wei


31 October 2016



25

• Revenue outperformed expectations

• Synergies on track, operating exp lower than expected

• Interest Cost savings to boost bottom line

• Debt was restructured, expects USD 270 mn in annual cost savings

• If achieved, represents more than 20% reduction in estimated interest

payments

• Strong Cloud and Enterprise storage demand

• Total Exabyte shipped increased 23.5% yoy, Data Center EB shipped grew

40% yoy

• Cloud demand grew nearly 50%

• PC market stabilized, grew 14%

Western Digital Corp(BUY, TP: US$71.54, previous: US$62.88, Last close: US$59.98)

Y/E Jun, USD bn, EPS(US$) 1QFY17 1QFY16 yoy Comments

Revenue 4.71 3.36 40.3%

SanDisk plus stronger HDD demand helped

pull Revenue up

Gross Profit 1.34 0.96 39.8%

Net Income 0.45 0.41 8.7%

Non-Gaap results show better than

expected earnings once acquisition cost

removed

Gross Margin 33.9% 29.1% 4.8%

Higher Margins achieved due to higher

level of SSD in the product mix

EPS 1.54 1.76 -12.5%

While down yoy, EPS of 1.54 is a reversal of

previous quarters' trend of falling EPS



26

Disclaimer

The information contained in this presentation has been obtained from public sources which Phillip Securities Pte Ltd (“PSPL”) has no reason to

believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in this

presentation are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or

warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any

such information or Research contained in this presentation is subject to change, and PSPL shall not have any responsibility to maintain the

information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be

liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made

available, even if it has been advised of the possibility of such damages.

This presentation is intended for general circulation only and does not take into account the specific investment objectives, financial situation or

particular needs of any particular person.

You should seek advice from a financial adviser regarding the suitability of the investment product, taking into account your specific investment

objectives, financial situation or particular needs, before making a commitment to invest in such products.



27

Analysts Pei Sai Teng, Macro

Jeremy Ng, Technical Analysis

Jeremy Teong, Banking & Finance

Soh Lin Sin, Consumer | Healthcare

Richard Leow, Transport | REITs (Industrial)

Dehong Tan, REITs (Commercial, Retail, Healthcare) | Property

Peter Ng, Property | Infrastructure

Ho Kang Wei, US Equity

Chen Guangzhi, Oil and Gas | Energy

By Phillip Securities ResearchMohamed Amiruddin, Operations Exec

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31 Oct 16, 8.15am/11.15am Morning Call/Webinar · 10/31/2016 · Mar 2017 (close) May 2017 (re-open) 9,800 sqft (Old) 25,000 sqft (New) Closed for A&E works to the building. Previously