Regional Market Focus 2H24 _03jul2024 (1)

Regional Market Focus
2H 2024 Outlook
Refer to important disclosures at the end of this report
DBS Group Research. Equity 4 Jul 2024
A better half ahead for emerging Analysts

Kee Yan YEO, CMT, keeyan@dbs.com
markets and rate cut beneficiaries
Fang Boon FOO, fangboonfoo@dbs.com
• Rate-cut beneficiaries benefit from ‘high-for-longer’ to Moxy Ying, moxyying@dbs.com
‘gradually lower’ Maynard Priajaya Arif, maynardpriajaya@dbs.com
• Anticipate market volatility from August to October leading Chanpen SIRITHANARATTANAKUL, chanpens@th.dbs.com
up to the US election Regional Research Team
• EM expected to outperform DM – Raise Indonesia to
Positive, Philippines to Neutral, lower Singapore to Neutral Regional Markets Outlook Summary
2024 YE Upside
Index Current YTD (%) Outlook
Final chapter in the high-for-longer playbook. We see interest rates Target (%)
transiting from high-for-longer to gradually lower in 2H24. DBS STI 3343 3.18% 3538 5.8% Neutral ↓
economist sees the Fed funds rate reducing by 25bps each quarter HSI 17718 3.94% 20300 14.6% Positive
starting in 3Q24, continuing for 6 consecutive quarters. With a soft SET 1301 -8.12% 1550 19.1% Neutral
landing as our base case for the US economy, we see a shift from high- JCI 7063 -2.89% 7750 9.7% Positive ↑
for-longer beneficiaries (e.g. banks) to those benefitting from rate cuts PSEI 6411 -0.60% 6700 4.5% Neutral ↑
(e.g. REITs, growth, cyclical) as the second half unfolds. Source: DBS, Bloomberg
US election uncertainties ahead. The period from mid-August to late STOCKS

October has historically been marked by uncertainty for US markets in 12-mth
Price Mkt Cap Target Performance (%)
election years. With the S&P500 trading above consensus YE target LCY US$m LCY 3 mth 12 mth Rating
and YTD returns exceeding the historical election year average, we Frasers
think 2024 will follow this pattern. A Democratic victory suggests policy Centrepoint Trust 2.12 2,853 2.70 (2.8) (3.2) BUY
continuity while a Trump victory could mean Trade War 2.0 with China, SATS Ltd 2.94 3,140 3.60 14.4 14.0 BUY
disrupting the clean energy transition, weakening the USD and driving
ST Engineering 4.25 9,855 4.80 5.9 16.6 BUY
up inflation in the longer term. China+1 theme that benefits technology
companies with ASEAN manufacturing presence stays relevant. Venture Corp 14.18 3,030 16.40 (0.1) (2.9) BUY
AAC Technologies 30.10 4,731 36.50 17.4 63.2 BUY
Neutral on Singapore and Philippines, Positive Indonesia. We see
China Mobile 78.65 189,940 93.00 16.1 22.8 BUY
better relative performance of regional emerging markets compared to
developed markets midway into 2H, once the rate cut cycle begins. Tencent 379 469,718 543 22.5 14.2 BUY
This is especially so for ASEAN markets, which also benefit from Trip.com Group 378 32,837 655 0.4 38.8 BUY
China+1 strategy. We lower our outlook for Singapore to Neutral from Wharf REIC 21.00 9,275 33.90 (18.3) (46.4) BUY
Positive. STI’s Price/Earnings-to-Growth (PEG) ratio is now the highest
Japfa Comfeed
among our coverage, but this is offset by its most attractive yield. We
Indonesia 1,470 1,079 1,800 21.5 9.7 BUY
upgrade Indonesia to Positive from Neutral as the Rupiah is expected
to strengthen in the 2H, and JCI’s PEG ratio is the lowest and its Bank Central Asia 9,975 71,752 10,875 0.8 9.0 BUY
dividend yield is attractive. We lift Philippines to Neutral from Negative, Telekomunikasi
anticipating an end to the economic slowdown later this year. Indonesia 3,030 18,786 4,100 (13.2) (24.3) BUY
Bank Mandiri 6,225 36,363 7,800 (9.8) 19.7 BUY
Maintain Positive on Hong Kong, Neutral Thailand. We maintain our
MREIT, Inc. 12.78 603 14.06 (1.7) (12.1) BUY
positive view on Hong Kong, supported by early signs of economic
RL Commercial
stabilisation in China, positive portfolio rebalancing by global investors,
REIT, Inc 5.19 953 5.64 3.4 (10.5) BUY
and a more supportive policy environment. We keep Thailand at
Neutral. Political uncertainty continues to pose as a key overhang, even BDO Unibank Inc 134 11,680 152 (13.1) (2.8) BUY
as Thailand's economic recovery continues. Advanced Info
Service 210 17,210 250 3.5 (1.9) BUY
Master Style PCL 61.25 504 70.00 (8.2) N.A BUY
Minor International 29.25 4,709 40.00 (10.7) (14.6) BUY
Source: DBS, DBSVI, DBSVTH, Bloomberg
Closing price as of 2 Jul 2024
Watchlist the stock on Insights Direct to receive prompt updates
ed: JS/ sa: DT, PY, CS

Market Focus
A better half for emerging markets and
rate cut beneficiaries
Regional 2H 2024 Outlook & Strategy
High-for-longer playbook in its final chapter rate to 5.25%, the dot plot still expects a reduction of
100bps next year to 4.25%, followed by another 100bps in
It’s not a matter of whether, but when and how quickly the
2026 to 3.25%. In other words, the first rate cut likely
Fed funds rate will come down. We see interest rates
signals the start of a gradual decline in interest rates at a
transiting from a high-for-longer to a gradually lower
25bps per quarter pace. This is almost in line with DBS’
environment in 2H. Despite the latest Fed dot plot update
projection for the Fed to cut rates by 25bps per quarter
that projects just 1 cut (prev. 3) this year in the Fed funds
starting 3Q24 for 6 consecutive quarters.
Interest rate downtrend is about to start

6.00%
5.50%
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
Current Dec-24 Dec-25 Dec-26
DBS Fed median dot plot
Source: DBS, US Federal Reserve
Disinflation signals continue 1. The latest US May headline and core (ex-food and
energy) CPI turned out more benign than expected
The Fed remains data dependent and needs to see
and was the second month in a row that inflation
upcoming data supporting the disinflation trend before it
numbers ticked lower after the modest rebound in
feels sufficiently reassured to initiate the first rate cut. The
1Q24.
following observations suggest that the recent disinflation
trend is continuing.
US CPI headline, core and breakdown (y/y%, Jun22 to May24)
Source: Bloomberg, DBS
Page 2
Market Focus
2. US consumer sentiment took a dip for third third 65.6 (preliminary) from a March high of 79.4. This
consecutive month in June with the Michigan suggests that the US consumer is feeling the pain of
University Consumer Sentiment Index dropping to inflation and the high interest rate environment.
University of Michigan Consumer Sentiment
3. A study conducted by the Federal Reserve Bank of San 4. The Bloomberg Economic Surprise Index fell to -
Francisco estimates that the overall pandemic excess 0.475% in June, the lowest in 5 years. It measures the
savings had turned negative since March 2024. This is percentage difference between actual economic data
estimated to have fallen from a positive USD2.1tn peak releases and analysts’ median forecast for housing/real
in Aug21 at a rate of about USD75-85bn per month to estate, industrial sector, labour market,
negative USD170bn currently. The depletion of excess personal/household, retail/wholesale and
savings removes one important source of funding for survey/business cycle indicators.
the consumer.
Bloomberg Economic Surprise Index
Cumulative aggregate pandemic-era excess savings
(USDbn)
2500
2000
1500
1000
500

0
2/1/2020
5/1/2020
8/1/2020
11/1/2020
2/1/2021
5/1/2021
8/1/2021
11/1/2021
2/1/2022
5/1/2022
8/1/2022
11/1/2022
2/1/2023
5/1/2023
8/1/2023
11/1/2023
2/1/2024
-500
Shift from high-for-longer to rate cut beneficiaries
Source: Federal Reserve Bank of San Francisco DBS economist sees a soft landing as the base case
scenario for the US economy with 2024 and 2025 GDP
growth of +2% y/y and +2.5% y/y respectively. Headline
inflation is also seen cooling off from 4.1% y/y in 2023 to
3.3% y/y this year, and 2.5% y/y in 2025. We see a shift
from high-for-longer beneficiaries (e.g. banks) to rate cut
beneficiaries (e.g. REITs, growth, cyclicals) as 2H unfolds.
Page 3
Market Focus
Rate cut beneficiaries

Price Target 12-mth EPS/DPU EPS/DPU PER PER Div P/BV
Mkt Cap Net Debt /
Company 28 Jun 24 Price Target Rcmd Growth Growth 24 25 Yield 24 24
(USD mn) Equity 24
(LCY) (LCY) Return 24 (%) 25 (%) (x) (x) (%) (x)
Capitaland Ascendas Reit 2.54 3.25 28.0% 7,732 BUY 0.4 0.7 17.5 17.0 6.0 1.1 0.4
Capitaland Ascott Trust 0.875 1.30 48.5% 2,401 BUY -2.1 0.9 15.7 15.5 7.3 0.8 0.4
Frasers Centrepoint Trust 2.13 2.70 26.8% 2,794 BUY -3.8 3.8 19.4 18.6 5.5 0.9 0.3
Mapletree Pan Asia Commercial Trust 1.22 1.75 43.4% 3,842 BUY -7.3 -6.5 15.3 15.4 6.8 0.7 0.4
SATS Ltd 2.86 3.60 25.9% 3,089 BUY 188.0 32.8 19.8 14.9 1.0 1.7 1.2
ST Engineering 4.34 4.80 10.6% 9,808 BUY 8.0 16.0 19.8 17.1 3.7 5.1 1.9
SHK Properties 67.55 111.60 65.2% 25,006 BUY 0.0 0.1 8.1 7.5 0.1 0.3 18.5
Wharf REIC 20.70 33.90 63.8% 8,029 BUY 0.1 0.1 9.5 8.6 0.1 0.3 17.3
Astra International 4,460 6,000 34.5% 11,340 BUY -11.8 1.0 6.2 6.2 0.1 0.9 20.5
Japfa Comfeed 1,425 1,400 -1.8% 1,061 BUY 56.2 18.0 11.8 10.0 0.0 1.1 80.1
MREIT Inc 12.80 14.10 10.2% 690 BUY 2.1 1.0 12.7 12.6 7.7 0.7 -
RL Commercial REIT Inc 5.30 5.60 5.7% 959 BUY 2.6 2.5 12.5 12.2 7.6 0.9 -
Source: DBS, DBSVI, First Metro, Bloomberg
US election uncertainties ahead
S&P500 YTD total return stood at 15% as of 24 June. This is

above the 10.5% average return during all presidential
election years since 1948 and regardless of which party
won (Democratic average 8.4%, Republican average 12.4%).
S&P500 total returns during US presidential election years

Election Year Party elected S&P500 Comments
total return
2024 15.0% YTD return as of 24 Jun
2020 Democratic 18.4% COVID
2016 Republican 12.0%
2012 Democratic 16.0%
2008 Democratic -37.0% GFC
2000 Republican -9.1% Dot.com bubble bursts
1996 Democratic 23.1% Mutual funds inflow into retirement accounts
1980 Republican 32.4% Stocks an inflation hedge as CPI topped 14%
1976 Democratic 23.8% Bulk of return was in 1Q
Overall Average 10.5%
Democratic Average 8.3%
Republican Average 12.4%
Source: DBS, Bloomberg
Page 4
Market Focus
The proliferation of AI and semiconductor sector recovery Polls show Trump leading Biden
as well as energy names powered a good portion of the
The first presidential debate between the likely Democratic
S&P500 rally YTD. The index now trades 2.5% above
(Joe Biden) and Republican (Donald Trump) candidates was
consensus’ (source: Bloomberg) end-2024 target of 5313.
held on 27 June. The party national conventions will be
We observed a drop in S&P500’s market breadth with 60%
held in July and August while the second presidential
of member stocks currently trading above their 50-day
debate occurs in September.
moving average versus 90% at the start of the year.
US election key dates
The lead up to past US presidential elections has spelt a
period of uncertainty for equity markets from mid-August Event Date
to late October. The chart below shows the S&P500 had First presidential debate 27-Jun
tended to top sometime in August followed by a pullback Republican National Convention 15-18 Jul
or correction till late October. We think this year is no Democratic National Convention 19-22 Aug
exception.
Second presidential debate 10-Sep
S&P 500 - US presidential election year seasonality
US presidential election 5-Nov
(1952 to 2020, 100= 1 Jan)
Source: DBS
Various opinion polls show Trump has pulled ahead of

Biden since December last year. The first Presidential
debate saw Trump pulling the lead over Biden and casted
some doubts over Biden’s candidacy.
Source: DBS
Favourable poll average difference between Trump and Biden
Source: Real Clear Politics, Bloomberg
Page 5
Market Focus
It’s still early days into the presidential campaign. The table policies. On the other hand, a Trump victory, based on
below summarizes some possible implications of the current observations, is likely to spell Trade War 2.0 with
outcome of the US presidential election based on the China, disrupt the clean energy transition, weaken the USD
current frontrunner candidates for both parties. A Biden and drive-up inflation in the longer term.
victory should mean continuity for most of the current US
Possible implications of US election outcome based on current front-runner candidates

Donald Trump Joe Biden Possible implications
Taxes Lower corporate tax by 1ppt to Plans to raise corporate tax and tax Corporate tax cut favourable for
20%, plans to deliver broad-based rates for the rich earnings
tax cuts
Trade 60% duty on China imports and Recently unveiled targeted Trump victory will speed up
10% duty on rest of the world. USD18bn tariffs on Chinese China+1 diversification that
Trump may impose 200% tariffs on imports affecting strategic benefits ASEAN. US companies with
Chinese EVs, double the current industries e.g. semicon, solar cells, high business exposure to China
tariff batteries, critical minerals, may face disruption from Trump
steel/aluminium, EVs trade war 2.0
USD Trump's advisors may have − US imported inflation will rise if this
debated on ways to devalue the happens; ASEAN markets may
Dollar to boost exports benefit initially from a weaker
Dollar
Interest rates May prefer a Fed chief that favours Fed independence Yield curve could steepen sharply
lower rates under Trump
Energy Trump may target climate Positive tilt towards clean energy Trump victory favours US
regulation, boost US oil production petroleum and traditional O&G
sectors while Biden victory is
favourable for clean energy and
EVs.
Defence Republicans unveiled a proposal to − Trump victory potentially positive

lift US defence spending to 5% of for defence stocks
GDP vs. 3% in 2023
China+1 stays in focus 2. With operations in South-East Asia, Singapore

technology companies Venture Corp, Frencken, Aztech
We believe that the China+1 trade diversification theme will
and UMS are beneficiaries of global companies
stay relevant as US-China trade tensions may worsen in the
diversifying out of China as they seek to build a more
lead-up to the US November election or even beyond
resilient supply chain.
1. Global foundries such as TSMC and Lam Research 3. Chinese companies Luxshare and BYD Electronics
have expanded operations into Japan and Malaysia (BYDE) should benefit from their rapid overseas supply
respectively to capitalise on the anticipated 3-7% chain integration to align with the shifts from global
CAGR in semiconductor capital spending in Asia ex- technology giants.
China from 2022 to 2027.
Page 6
Market Focus
Stock picks for China+1

Price Target 12-mth EPS EPS PER PER Div P/BV
Mkt Cap Net Debt /
(USD mn) Equity 24
Taiwan Semiconductor Manufacturing (USD) 173.81 176.00 1.3% 4,507,524 BUY 22.3 25.8 27.4 21.8 1.3 6.7 cash
Lam Research 1064.85 1190.00 11.8% 139,220 BUY 15.2 21.1 35.9 29.6 0.7 17.8 cash
Frencken Group Limited 1.63 1.90 16.3% 504 BUY 46.6 14.6 14.6 12.8 2.1 1.6 cash
Venture Corporation 14.26 16.40 15.0% 2,998 BUY 6.8 7.6 14.4 13.4 5.3 1.4 cash
Luxshare Precision Industry (CNY) 39.31 50.00 27.2% 38,665 BUY 40.7 22.5 18.0 14.7 0.5 0.6 3
BYD Electronic International 39.00 34.00 -12.8% 10,851 BUY 18.5 37.2 16.4 11.9 1.8 2.5 49
Page 7
Market Focus
Valuation and Outlook
DM outperformed EM in 1H24 heavyweight banks as the high-for-longer narrative

stretched on. The emerging markets equity indices of
Regional indices relative performance YTD (normalised
0% = type date here) Indonesia, Thailand and Philippines fell in 1H24 after their
currencies weakened against the USD, prompting the
respective central banks to either withhold rate cuts
(Thailand and Philippines) or hike rates (Indonesia) to
defend the domestic currencies and stem funds outflow.
A better 2H for emerging markets
DBS economist sees the first 25bps cut taking place in

Source: DBS Bank September followed by a second in December. Ceteris
paribus, the anticipated start of the upcoming rate cut
Developed markets (DM) under our coverage cycle should see better relative performance from regional
outperformed emerging markets (EM) in 1H24. The Hang emerging markets versus developed markets mid-way into
Seng Index (HSI) rallied strongly in the first 4-5 months with the 2H. This maybe especially so for ASEAN markets.
green shoots of recovery in 1Q, global investors’ portfolio
The 2 charts below show the relative performances of the
rebalancing and a more supportive policy environment,
Jakarta Composite Index (JCI), Stock Exchange of Thailand
before paring gains in the past 1-2 months. The Straits
Index (SETI) and Philippines Stock Exchange Index (PSEI)
Times Index’s (STI) outperformance was led mainly by index
versus the STI since 1999 over 3 interest rate cycles:
Relative performance of SET, JCI, PCOMP vs. STI over interest rate cycles (100 = 1 Jan 2015) and Fed funds rate
Source: DBS Bank
1. STI benefits from interest rate upcycle due to banks rates are rising (refer to shaded areas in red: end 1999
taking up to 50% of the index weight to 3Q 2000, 3Q 2004 to 2Q 2006, 4Q 2016 to 2Q 2018,
2Q 2022 to 3Q 2023)
2. Ceteris paribus, regional EM markets tend to
underperform or perform on-par at best when interest
Page 8
Market Focus
4. EM markets outperform at the early phase of the rate to 3Q 2OO1), and in the absence of shock events (e.g.
cut cycle. This is especially evident in the periods of the September 11, GFC, COVID pandemic)
first few cuts (refer to shaded areas in green: 1Q 2001
Relative performance of SET, JCI, PCOMP vs. STI over interest rate cycles (100 = 3 Sep 1999) and Fed funds rate
Source: DBS Bank
Like previous interest rate cycles, we are optimistic that EM landing for the US economy, (3) 5% GDP growth for China
markets under our coverage should perform better once supported by stabilising/improving manufacturing activities,
the rate cut cycle begins, considering (1) regional exports, fixed asset investment, consumption and benign
currencies should have bottomed against the USD in 2Q24 monetary policy, and (4) stock market valuation has fallen
and strengthen thereafter, (2) our base case of a soft to more attractive levels with the decline from YTD peak.
DBS forecasts regional currencies to bottom against the USD in 2Q
YTD vs. USD DBS forecast

Current
(%) 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25
USD/IDR 16402 -6.13 15950 15790 15630 15480 15320 15160 15000
USD/PHP 58.76 -5.81 57 56.6 56.1 55.7 55.2 54.8 54.4
USD/THB 36.88 -7.11 36.1 35.5 34.9 34.3 33.7 33.1 32.5
USD/SGD 1.3573 -2.72 1.37 1.36 1.35 1.34 1.34 1.33 1.32
Source: DBS Bank
Page 9
Market Focus
3 changes in country outlook heading into the second half
DBS indices’ forecast – Regional markets valuations

Country Index EPS Growth % PE (X) PEG Div. Yield %*
24F 25F 24F 25F 24F 25F 24F 25F
Singapore STI 7.2 5.2 11.2 10.7 1.6 2.1 5.2 5.4
Hong Kong HSI 5.6 7.1 9.0 8.4 1.6 1.2 4.4 4.5
Thailand SET 14.0 9.0 15.2 13.9 1.1 1.5 3.7 4.1
Indonesia JCI 11.5 9.1 12.8 11.6 1.1 1.3 4.9 5.0
Philippines PSEI 7.0 11.0 10.6 9.9 1.5 0.9 3.0 3.1
*Based on Bloomberg consensus forecast, except for Singapore
Regional Outlook Summary
Close 2024 YE % from

Index YTD (%) Outlook
(28 Jun) target target
STI 3343 3.18% 3538 5.8% Neutral ↓
HSI 17718 3.94% 20300 14.6% Positive
SET 1301 -8.12% 1550 19.1% Neutral
JCI 7063 -2.89% 7750 9.7% Positive ↑
PSEI 6411 -0.60% 6700 4.5% Neutral ↑
Source: DBS Bank
We had lifted our outlook for Singapore to Positive and due to the low double-digit EPS growth. However,
lowered Indonesia to Neutral in a tactical move back in May dividend yield is the lowest.
(refer to Regional Market Focus – Riding out high-for-longer
rates). It was a right move as the STI outperformed the JCI
Positive on Hong Kong – Supportive policy environment
by more than 5% in mid-June, while a JCI rebound
and improving liquidity
narrowed the gain to 2% by end-June.
We maintain our positive view on Hong Kong, supported by
1. Singapore outlook lowered to Neutral (from Positive)
early signs of economic stabilisation in China, positive
– The STI may find it hard to outperform regional EM
portfolio rebalancing by global investors, and a more
markets once interest rates start to trend down as
supportive policy environment. Our 12-month HSI target
bank stocks hold a significant 50% weight. The August
was recently lifted to 20,300, on moderate earnings
to October period could see sideways volatility. Among
recovery of 6.4% over the next 12 months, alongside an
our coverage, Singapore’s dividend yield is the most
improved valuation of 9.7x forward P/E. Key upside drivers
attractive while PEG valuation is the least attractive.
include further property market policy easing, improved
2. Indonesia outlook raised to Positive (from Neutral) – liquidity on potential interest rate cuts in China and the US,
The anticipated Fed rate cuts and a stronger Rupiah in and sustained southbound inflows underpinned by
2H should see the JCI do better. The PEG ratio of 1.1 is attractive valuations. The stock market can still rally without
the lowest among our coverage while dividend yield is an immediate rebound in the real estate sector, if
a close second highest, just slightly behind Singapore. supportive policies and liquidity conditions persist. Our
themes and picks are 1) Quality stocks in internet and tech
3. Philippines outlook raised to Neutral (from Negative)
hardware sectors - Tencent (700 HK), Trip.com (9961 HK),
– The Philippines economy is in a late contraction
AAC Tech (2018 HK), 2) High-yield SOEs for defensiveness -
phase and should bottom out later this year, according
China Mobile (941 HK), Sinopec (386 HK), and 3) Rate cut
to our strategist. Among our coverage, PEG valuation
beneficiaries - Link REIT (823 HK), SHKP (16 HK), Wharf REIC
for PSEI is fair this year and most attractive next year
(1997 HK).
Page 10
Market Focus
Positive on Indonesia – Benefiting from Fed rate cuts and (STE SP); (3) Potential for corporate activities SingTel (ST
strengthening Rupiah SP), ComfortDelgro (CD SP), Keppel Ltd (KEP SP).
We lift Indonesia’s outlook to Positive in anticipation of the

Fed starting its rate cut cycle and the Rupiah strengthening. Neutral on Thailand – Political uncertainty taints
This should lead to a better performance in the Indonesian economic recovery
market performing better performance in 2H. Improving
We maintain our neutral view on Thailand and our end-
investor sentiment, easing pressure on Rupiah and
2024 SET Index target of 1,550, based on EPS growth of
attractive earnings yield versus bonds should draw
14% in 2024 and attractive below-average valuations.
investors back to equities after heavy foreign selling in
Political uncertainty continues to pose as a key overhang
2Q24. GDP growth should hold around 5%, with continuity
for the market, even as Thailand's economic recovery
from the new government taking office in October as the
continues, led by robust private consumption, tourism, and
key event to watch in the second half this year. Our themes
agricultural exports. Proposed measures such as the
and picks are 1) rate sensitive sectors - Bank Mandiri (BMRI
revision of investment conditions for Thai ESG funds and
IJ), Japfa Comfeed (JPFA IJ), Astra International (ASII IJ),
implementation of further regulatory amendments are
Telkom (TLKM IJ), and 2) blue-chips with steady growth
aimed at revitalising the sluggish stock market. Our themes
outlook - Bank Central Asia (BBCA IJ), Medikaloka Hermina
and picks are 1) Continued tourism recovery - Airports of
(HEAL IJ).
Thailand (AOT TB), Minor International (MINT TB), 2) Strong
2H24F earnings - Advanced Info Service (ADVANC TB),
Neutral on Singapore – Sideways volatility before firming Amata Corporation (AMATA TB), Master Style (MASTER TB)
towards year-end. and 3) Revised Thai ESG funds – C.P. All (CPALL TB), PTT
Exploration & Production (PTTEP TB).
We lift STI’s year-end target modestly higher to 3538 (prev.
3485), pegged to 11.3x (-1.5SD) FY25F PE. We lower our
outlook to Neutral with the anticipated start of the Fed rate Neutral on Philippines – Economy to bottom later this
cut cycle as early as September. The August to October year
period could see sideways volatility before the market
We lift our outlook to Neutral with the Philippine economy
trend firms towards the year end. Technical support is at
expected to bottom out later this year. Green shoots in
3238. The economy stays on target to grow 2.2% y/y. The
high frequency data should emerge over the next 1-2
tech cycle upturn underpins the manufacturing recovery.
quarters. Earnings growth should recover to high-single to
The mutual visa-free travel arrangement between
low-double digits in 2024-2025 from operating leverage
Singapore and China as well as robust pipeline of events
improvements. Valuations may stay depressed with
should extend the ongoing tourism recovery well into
elevated global yields, though reforms could attract foreign
2H24. Inflation is expected to cool further. MAS could ease
investors back. We maintain our end-2024 Philippine index
the appreciation pace of the SGD NEER policy band in the
target of 6,700 and advocate a defensive stance for now
upcoming meeting in July, ahead of the Fed. Themes are (1)
until clearer recovery signs emerge over the near term.
Rate cut beneficiaries REITs Frasers Centrepoint Trust (FCT
Prefer stocks with visible earnings growth such as Universal
SP), CapitaLand Ascendas REIT (CLAR SP), CapitaLand
Robina Corp (URC PM), Jolibee Foods (JFC PM), BDO
Ascott Trust (CLAS SP), Mapletree Pan Asia Commercial
Unibank (BDO PM), Metropolitan Bank & Trust (MBT PM),
Trust (MPACT SP); (2) Growth stocks Venture Corp (VMS
MREIT, RL Commercial REIT (RCR PM), Robinsons Land
SP), Frencken (FRKN SP), SATS (SATS SP), ST Engineering
Corp (RLC PM), Converge ICT (CNVRG PM), PLDT (TEL PM).
Page 11
Market Focus
Sector valuation and growth
Singapore
▪ Attractive valuations for the industrial sector on highest FY24F earnings growth with decent PE valuations. Moderating
earnings growth of index heavyweight banks offset by the attractive dividend yields that they offer. Glimpses of earnings
recovery noted for technology stocks in FY24F are expected to accelerate in FY25F.
Sector valuation & growth

Ea rnings grow t h (% ) PE ra t i o (X ) D i vi d en d yi el d (% )
24F 25F 24F 25F 24F 25F
Banks -0.4 3.2 9.4 9.2 5.4 5.5
Comms Svcs 8.0 6.6 18.1 17.0 6.2 6.6
Cons Disc 11.5 11.2 12.3 11.1 4.6 5.3
Cons Staps 30.4 6.4 9.0 8.4 4.7 5.1
Financial 13.3 9.1 21.4 19.6 3.3 3.4
Health Care -38.6 7.1 39.2 36.6 1.5 1.5
Industrials 36.0 6.2 13.1 12.3 3.9 3.9
Info Tech 11.8 18.1 13.7 11.6 4.2 4.5
Real Estate 18.5 14.4 13.0 11.4 4.8 4.8
REITs -2.1 2.7 14.6 14.2 6.6 6.8
Utilities -2.7 -1.0 28.1 28.4 8.5 8.5
D B S C overa g e 6. 4 5. 3 11. 9 11. 3 5. 2 5. 3
ST I D B S foreca st 7. 2 5. 3 11. 2 10. 7 5. 2 5. 4
Hong Kong
▪ Healthcare is expected to see the strongest earnings growth in FY24F, followed by real estate and construction.
Industrials is expected to record negative earnings growth for FY24F.
Ea rning s G row t h ( % )PER ( x) D iv Y ld ( % )

24F 25F 24F 25F 24F 25F
Cons Disc 102.5 26.2 15.5 12.3 2.8 2.5
Cons Stap 12.5 13.7 11.1 9.8 4.4 4.0
Energy 1.8 3.7 7.5 7.3 6.6 6.7
Financial 9.6 0.4 6.0 6.0 6.8 6.6
Health Care 223.0 60.2 30.5 18.9 1.2 1.4
Industrials -27.4 9.2 8.8 8.1 4.5 4.0
Info Tech 23.0 18.7 14.8 12.3 1.0 1.3
Materials 55.0 27.1 11.5 9.1 2.9 1.9
Real Estate & Const 172.0 16.6 8.0 6.9 6.4 6.7
Telecom 8.7 7.8 11.1 10.3 6.8 6.5
Utilities 9.1 9.3 10.0 9.1 5.4 5.1
DBS Coverage* 10.8 8.7 9.5 8.3 4.5 5.1
HSI DBS Forecast 5.7 7.1 9.0 8.4 NA NA
* PE ratio and Dividend yield are based on average
Page 12
Market Focus
Thailand
▪ We expect Thai market EPS to grow 14% in 2024, after falling 8% in 2023. Growth should be supported by the
Transportation and the Tourism sectors, which saw a strong turnaround from heavy losses in 2022 to profit in 2023.
Such recovery should continue in 2024 with more tourist arrivals expected next year.

Net prof it Grow t h (% ) PE(x)
YE De c (Bt m) FY2 3 A FY2 4 F FY2 5 F FY2 3 A FY2 4 F FY2 5 F
Banking 18% 5% 1% 7.3 7.0 6.9
Finance 4% 11% 19% 12.9 12.0 10.1
Con. Mat . 19% -29% 27% 10.5 14.8 11.7
Chemicals -144% nm nm mn mn 28.0
Cont ract ors 3% 12% 24% 23.8 21.2 17.1
Propert y 3% 5% 7% 10.1 9.6 9.0
- Commercial 40% 12% 15% 16.8 15.0 13.0
- Resident ial -5% 0% 3% 6.4 6.5 6.3
- Indust rial -23% 17% 4% 16.3 13.9 13.3
Propert y Fund 23% 7% -1% 9.2 9.1 9.3
Energy 6% -3% 2% 9.2 9.5 9.2
Commerce 15% 19% 13% 22.8 19.1 16.9
Transport nm 65% 16% 50.5 28.3 24.6
Tourism 84% 49% 7% 34.5 26.3 14.2
Telecom -27% 81% 5% 26.6 15.2 14.3
Elect ronics 6% 14% 6% 51.8 45.3 42.6
Food -104% nm 18% mn 20.7 17.6
Healt h Care Services -1% 11% 8% 29.3 26.6 24.6
Ot hers -8% 35% 15% 27.6 20.4 17.8
DBS Coverage -8% 14% 9% 17.3 15.2 13.9
Source: DBSVTH, Bloomberg
Indonesia
▪ JCI’s valuation remains undemanding, as it trades at -1SD below its 10-year average PE multiple. FY24F earnings growth
has been revised down but this was partly offset by upward earnings revisions for banks.
Source: DBSVI, Bloomberg
Page 13
Market Focus
Philippines
▪ We forecast index-level earnings to grow by 7%/11% in FY24F/25F, following a moderation in FY23. We expect the impact
of negative operating leverage to fade in the next 12 months amid a moderate recovery in demand as well as favourable
base effects.
EPS Growt h (%) PER (x) Div Yield (%)

GICS Sect or 24F 25F 24F 25F 24F 25F
Communication Svcs 4.3% 5.5% 9.8 9.3 5.9% 6.2%
Consumer Disc. -15.5% 25.7% 16.9 13.4 1.4% 2.0%
Consumer Staples 9.8% 72.8% 16.9 14.8 2.5% 2.8%
Energy 180.6% -18.5% 5.1 6.3 10.0% 10.0%
Financials 4.7% 7.6% 8.6 8.0 3.4% 3.5%
Industrials 11.5% 74.6% 9.5 8.6 2.2% 2.1%
Materials -2.2% 39.3% 9.8 7.1 3.1% 4.1%
Real Estate 19.5% 9.9% 12.0 10.9 2.6% 2.9%
Utilities -1.9% -1.8% 11.4 12.1 4.2% 4.2%
PSE Index 5.1% 14.4% 11.1 10.3 2.8% 2.9%
PSE Index (forecast)* 7.0% 11.0% 10.6 9.9 - -
*based on a multifactor regression model
Source: DBS, Refinitiv
Page 14
Market Focus
Country Outlook
Page 15
Market Focus
Singapore
Analyst: Yeo Kee Yan, keeyan@dbs.com
Foo Fang Boon, fangboonfoo@dbs.com
▪ STI end-2024 target lifted to 3538 (prev. 3485)

▪ Macro panning to expectations: firmer electronics recovery, tourism on track, disinflation trend
▪ Themes: Rate cut beneficiaries, growth stock, potential for corporate activities
Firmer electronics recovery in sight 2024, with the tech cycle upturn key to the manufacturing
recovery. This is affirmed by positive momentum in the
Recent macro data releases are shaping towards our
electronics segment as it continues to pull ahead versus
economists’ GDP forecast of 2.2% this year. Our
headline counterparts in recent months, and registered
economists see better factory prospects over the course of
impressive double-digit y/y gains in latest May readings.
Singapore macro datapoints – Electronics vs. Headline
NODX (%, y/y) Manufacturing PMI Ind. Prod. (%, y/y)

Date Electronic Headline Electronic Headline Electronic Headline
Dec-23 -11.7 -1.5 50.2 50.5 8.0 -1.6
Jan-23 0.6 16.7 50.6 50.7 -4.5 0.7
Feb-23 5.2 -0.2 50.4 50.6 3.8 4.5
Mar-23 -9.5 -20.8 50.8 50.7 -11.3 -9.2
Apr-23 3.3 -9.6 50.9 50.5 -1.1 -1.2
May-23 21.9 -0.1 51.1 50.6 20.1 2.9
Note: According to comparison between electronic and headline figures (green = outperformance)
Tourism remains as another key source of support for the forecast for this year. A boost to the return of Chinese
Singapore economy. While May’s visitor arrivals of 1.28mn tourists from mutual visa-free travel arrangement and
(+15.3% y/y) marks the slowest increase YTD, it robust pipeline of events should extend the ongoing
nevertheless makes up c.86.2% of the level in May-19, and tourism recovery well into 2H24.
is at the top-end of Singapore Tourism Board’s 15-16.5mn
YTD-2024 visitor arrivals (% of 2019 levels)
Source: DBS, Singapore Tourism Board
Page 16
Market Focus
Easing monetary stance alongside inflation Theme 1: Position early in rate cut beneficiaries
Disinflation trend is also in play, with scope for inflation to Investors should position ahead of the imminent Fed rate
cool further on 1) fading one-off GST hike impact, 2) cut(s). Rate cut beneficiaries REITs, which have borne the
moderating domestic labour cost pass-through, and 3) brunt of the “high-for-longer” theme over the past 2 years,
contained imported inflation. Inflation has eased steadily should find some reprieve as the Fed pivots later this year.
during the course of this year, with latest May-24 This time should be no different 1) where REITs have
core/headline inflation of 3.1% y/y close to our economists’ outperformed the index during the past rate cut cycle(s),
forecast at 3.1%/2.8%, respectively. Our economists see and 2) as sentiment towards REITs turn more positive from
these paving the way for the MAS to ease the appreciation the current low base. We think it will only take a few
pace of the SGD NEER policy band in upcoming July’s positive macro datapoints (e.g. lower inflation, weaker
meeting, and ahead of the Fed. employment) for sentiment to swiftly shift, as most
negativities are already priced in at this point.
Singapore inflation (%, y/y)
Recent deep dive by our REITs analysts shows that REITs
continue to exhibit sound capital structure and are well-
prepared to weather a period of elevated interest rates.
Extension of solid organic growth momentum and
operating metrics seen in 1Q24 into 2H24 are additional
near-term catalysts for this sector. Sticking to their strategy
of selecting relative value, our REIT analysts prefer retail
(FCT SP, LREIT SP), industrials (FLT SP, MLT SP, DCREIT SP),
hotel (CLAS SP) followed by office (CICT SP, MPACT SP) sub-
sectors.
REITs’ financial/operational metrics (as of Mar-24)

Financial Operational
% Debt
REIT ICR % Fixed Current
Gearing expiry in Reversions Occupancy
(X) debt debt cost
24/25
FCT 3.3 37.2% 0% 69% 4.2% 7.5% 99.9%
LREIT 2.3 41.0% 0% 61% 3.5% 15.3%* 99.4%*
MLT 3.7 38.9% 5% 84% 2.7% 2.9% 96.0%
FLT 5.9 32.7% 23% 76% 2.6% 14.2% 94.3%
DCREIT 3.2 35.1% 0% 93% 3.9% 2.0% 95.8%
CLAS 3.7 37.9% 12% 82% 3.0% 6.0% 73.0%
CICT 3.1 40.0% 12% 76% 3.5% 14.1%* 95.8%*
MPACT 2.9 40.5% 15% 77% 3.4% 2.9% 96.1%
Source: DBS, Company reports
*Based on LREIT’s retail portfolio; and CICT’s office portfolio
Theme 2: Growth stocks and scope for positive spillover from AI should underpin
earnings growth. Another category is companies with
A gradual declining interest rate environment is conducive
robust earnings growth profile albeit with relatively higher
for “growth” stocks, like Venture Corp (VMS SP) and
gearing. Examples would be ST Engineering (STE SP) and
Frencken (FRKN SP) in the technology domain. The
SATS (SATS SP).
confluence of improving industry outlook, 2H24 recovery
Page 17
Market Focus
Theme 3: Seek stocks with potential for corporate companies with the potential to accelerate the pace of
activities their corporate activities into 2H24, after delivering some
over the past 6 months, 2) companies that benefit from
Benign backdrop of improving economic outlook and
the ongoing regional expansion (e.g., China+1 strategy
easing interest rates could be a set up for increased risk
and/or regional FDI). Our picks are Keppel (KEP SP),
appetite and corporate activities in 2H24, which includes
SingTel (ST SP) and ComfortDelgro (CD SP). Moreover,
investments, acquisitions and/or share buybacks. We see
improving core FY24F/25F earnings should lend further
two possible ways where this could pan out – 1)
support to these stocks.
Stocks to watch and their YTD24 corporate actions

Stock Corporate actions Forward
EPS Growth
Jan-24: JV with Go-Ahead to operate Stockholm Metro
ComfortDelGro Feb-24: Acquisition of CMAC Group FY24F: 24%
(CD SP) Mar-24: Contracts to operate 4 bus franchises in the UK FY25F: 11%
Apr-24: Completion of A2B Australia acquisition
Mar-24: Launch of GPU-as-a-Service with Nvidia AI chips
Mar-24: Divestment of 0.8% in Bharti Airtel
Singtel Mar-24: Talks of Optus divestment, but debunked by ST FY25F: 9%
(ST SP) May-24: Introduced value realisation dividend programme FY26F: 7%
Jun-24: Partner with Telekom Malaysia to build data centers
Jun-24: Investment into ST Telemedia Global Data Centres
Mar-24: Forward purchase agreement of data centre in Japan
Apr-24: Completed acquisition of Aermont Capital
Keppel Ltd FY24F: 6%
May-24: Divested remaining stake in Dyna-Mac
(KEP SP) FY25F: 15%
May-24: Talks of potential StarHub-M1 merger
May-24: Potential asset swap with Keppel DC REIT
Source: DBS, Companies’ announcements
Lift STI end-2024 target to 3538 (prev. 3485) Technical support is at 3238, which is near 10.7x (-2SD)
12-mth fwd PE. Some of the YTD money flow into bank
We raise the STI year-end target modestly higher to 3538
stocks could switch to rate cut beneficiaries (e.g.
(prev. 3485), pegged to 11.3x (-1.5SD) FY25F PE. The
REITs/property), industrials, consumer and technology
Singapore benchmark outperformed regional bourses in
1H as banks (51% of STI weight) benefited from the high-
for-longer environment. We believe STI will likely follow Straits Times Index (Daily)
past seasonal trend going forward as interest rates start
to trend down. July should continue to be a positive
month for the index but be wary of August volatility
ahead of the 3 bank stocks and SingTel (6.6% STI weight)
going ex-dividend. The August to October period could
spell a period of sideways volatility, before the STI
steadies and the trend strengthens towards year end.
Barring unforeseen shock events, we do not anticipate a

major correction in 2H as STI delivers mid-single digit
earnings growth and 5% dividend yield going forward. Source: DBS Bank
.
Page 18
Market Focus
Stock picks valuation table

Price Target 12-mth EPS/DPU EPS/DPU PER PER Div P/BV
Mkt Cap Net Debt /
(USD mn) Equity 24
Rate cut beneficiaries
Capitaland Ascendas Reit 2.54 3.25 28.0% 7,732 BUY 0.4 0.7 17.5 17.0 6.0 1.1 0.4
Capitaland Ascott Trust 0.88 1.30 48.5% 2,401 BUY -2.1 0.9 15.7 15.5 7.3 0.8 0.4
Frasers Centrepoint Trust 2.13 2.70 26.8% 2,794 BUY -3.8 3.8 19.4 18.6 5.5 0.9 0.3
Mapletree Pan Asia Commercial Trust 1.22 1.75 43.4% 3,842 BUY -7.3 -6.5 15.3 15.4 6.8 0.7 0.4
Growth stocks
Frencken Group Limited 1.63 1.90 16.3% 504 BUY 46.6 14.6 14.6 12.8 2.1 1.6 cash
Venture Corporation 14.26 16.40 15.0% 2,998 BUY 6.8 7.6 14.4 13.4 5.3 1.4 cash
SATS Ltd 2.86 3.60 25.9% 3,089 BUY 188.0 32.8 19.8 14.9 1.0 1.7 1.2
ST Engineering 4.34 4.80 10.6% 9,808 BUY 8.0 16.0 19.8 17.1 3.7 5.1 1.9
Potential for corporate activities
ComfortDelgro 1.34 1.80 34.1% 2,103 BUY 24.2 11.2 13.0 11.6 6.1 1.1 cash
Keppel Ltd 6.49 9.00 38.6% 8,494 BUY 6.0 15.3 11.3 9.8 5.4 1.1 0.8
SingTel 2.77 3.50 26.2% 33,146 BUY 8.5 6.5 18.7 17.5 5.9 1.9 0.3
Page 19
Market Focus
Hong Kong
Analyst: Moxy Ying, moxyying@dbs.com
Vanessa Lee, vanessaszechunl@dbs.com
▪ We reiterate our 12-month HSI target at 20,300 on mild EPS and multiple expansion
▪ Our study shows China stocks can recover during a property downturn when liquidity improves
▪ Buy internet and tech hardware in recent market consolidation; hold SOEs for their dividend yield, defensiveness and
potential inflow from mainland investors
1H24 has been a wild ride for the China/Hong Kong stock increase in FAI into manufacturing and tech hardware have
market. The Hang Seng Index has rallied 5.8% YTD, after a been partially filling the gap left by sluggish real estate
12% correction in Jan. Green shoots of economic recovery, investments. The property loan exposure in outstanding
global investors’ portfolio rebalancing and a more RMB debt has also been reduced since the implementation
supportive policy environment contributed to the better of the Three Red Lines. Real estate stocks’ weighting in the
performance. Entering 2H, we increased our 12-month HSI HSI and CSI300 has dropped, with falling contribution to
target by 4% to 20,300 (Click here to read the report) index earnings.
based on 6.4% earnings growth in the next 12 months and
Falling real estate's contribution to GDP
9.7x forward PE.
100
30%
We expect earnings to gradually recover amid a stabilising 25%

economy. While the 1Q24 result season remains weak, we
20%
saw some bright spots including 1) narrowing decline in net
15%
income y/y, and 2) positive earnings revision in sectors like
10% 21%
internet and consumer electronics. 20% 19%
14%
12%
5%
Valuation will play a more important role in the 2H. We
0%
increased our PE assumption from -1.25SD previously to - 2019 2020 2021 2022 2023
1SD below the 5-year average to reflect 1) a more Real estate GDP contribution Rest
supportive policy environment, and 2) improving liquidity.

Source: DBS. Note: Contribution calculated by adding up
We believe the recent property policy shift will alleviate the commodity housing sales, output of other retail industries related to
RE (furniture, home appliance and decoration), interest expense of
tail risk in the economy and is a good first step in the right
mortgage, management fee of property management and
direction (Click here to read the report). On the liquidity commission income of brokerage for secondary transaction
front, our economists expect one rate cut and one RRR cut
in China, and still see two interest rate cuts in the US. The
Weighting of China real estate stocks in HSI and
fund flow may also turn marginally more positive toward
CSI 300 have been falling since 2017
HK, as global investors diversify away from outperforming
6 (%)
markets. Southbound inflow may be sustained given the
5
attractive valuation of HK stocks and dividend yield.
4
Regarding the market’s concern on whether Chinese stocks
3
can recover without an improvement in the property
market, our answer is yes, if there is liquidity support. The 2
impact of the property sector on China’s economy and 1
financial stability have been reduced to some degree 0

compared to a few years ago. While real estate used to 2017 2018 2019 2020 2021 2022 2023 2024
have a significant share in China’s GDP, the contribution HSI CSI300
has declined to 12% in 2023 from 21% in 2020. The Source: Hang Seng Indexes Company, WIND, DBS
Page 20
Market Focus
Taking the experience of China back in 2010, 2014 and experience also told us that a divergence between the
2019, it is possible for a stock market to rally without a property and stock market is likely (Click here to read
booming property market, as long as there are other more).
factors strong enough to drive market liquidity. Japan’s
History suggests the stock market can rally without a booming property market
180 (index = 1/1/2010)
150
120
90
60
30
0
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24
HANG SENG - PRICE INDEX SHANGHAI SHENZHEN CSI 300 - PRICE INDEX
15 (index) (%) 140

120
10 100
80
5 60
40
0 20
0
-5 -20
-40
-10 -60
Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24
Property Price index YTD cumulative property floor space sold growth (YoY) (RHS)
Source: DBS, Bloomberg, LSEG

Note: Property price index = China 70 Cities Newly Built Commercial Residential Buildings Prices Y/Y Average
Previous periods when Chinese stocks staged rallies during property downturns
Date Index performance Reasons of divergence
China tightened property measures over the course of 2010 to curb speculations, incl.
June 2010 – CSI300 14.9% Property: suspending mortgage of third homes and increasing minimum down payment ratio to
Aug 2010 50% for second home
HSI 2.0% Stocks: US quantitative easing triggered rallies in heavily-weighted energy and material stocks
CSI300 65.1% Property: A prolonged destocking after an overheated market in 2013
June 2014 –
Ample liquidity in the financial system and irregulated shadow financing activities
Feb 2015 HSI 7.0% Stocks:
triggered a rapid, leverage-driven rally
Market largely stable amid tight regulation imposed since 2018, with home price
CSI300 36.1% Property:
gradually trend down
Jan 2019 –
Stocks had strong rally on amply domestic liquidity, US interest rate cuts and foreign
Dec 2019
HSI 9.1% Stocks: inflows brought by MSCI expanding China inclusion; US-China trade tension also
stabilized in 4Q
Source: DBS, Bloomberg, LSEG
Page 21
Market Focus
Investment themes Hong Kong real estate stocks would benefit from potential
US interest rate cuts in 3Q24. We like Link REIT (823 HK) for
We believe now is a good time to accumulate quality stocks
its bond like investment profile, which is sensitive to interest
in internet and tech hardware sectors, especially those
rates, SHKP (16 HK) as a proxy to the HK residential sector,
capable of gaining market share or enhancing shareholder
and Wharf REIC (1997 HK) for holding a high proportion of
value. We favour Tencent (700 HK), Trip.com (9961 HK) and
floating rate bonds.
AAC Tech (2018 HK).
We also like higher-yielding SOEs like China Mobile (941 HK)

and Sinopec (386 HK) for their defensiveness and potential
inflows from mainland investors.

Price EPS/DPU EPS/DPU PER PER Div P/BV
Target Target Mkt Cap Net Debt /
Company 28 Jun 24 Rcmd Growth Growth 24 25 Yield 24 24
Price Return (USD mn) Equity 24
(LCY) 24 (%) 25 (%) (x) (x) (%) (x)
Internet and tech hardware
AAC Tech 30.70 36.50 18.9% 4,700 BUY 2.0 0.3 15.4 12.1 0.0 1.4 0.1
Tencent 372.40 543.00 45.8% 449,348 BUY 0.4 0.1 20.1 17.8 0.0 3.8 0.1
Trip.com 374.60 655.00 74.9% 30,921 BUY 0.2 0.1 18.5 17.0 - 1.7 cash
High-yield SOEs
China Mobile 77.00 93.00 20.8% 215,200 BUY 3.1 5.9 11.0 10.4 6.7 1.1 cash
Sinopec 5.06 5.20 2.8% 101,691 BUY 0.2 0.1 8.3 7.8 0.1 0.7 0.1
Real estate
Link REIT 30.35 45.30 49.3% 9,902 BUY -4.0 1.1 n.a n.a 0.1 0.4 0.2
SHKP 67.55 111.60 65.2% 25,006 BUY 0.0 0.1 8.1 7.5 0.1 0.3 0.2
Wharf REIC 20.70 33.90 63.8% 8,029 BUY 0.1 0.1 9.5 8.6 0.1 0.3 0.2
Page 22
Market Focus
Thailand
Analyst: Chanpen Sirithanarattanakul, chanpens@th.dbs
▪ Economic recovery gathering momentum amidst accelerating exports and private investment, while private consumption
and tourism remain strong
▪ Politics remains an overhang
▪ Trading at attractive P/BV of 1.2x, close to pandemic level
▪ SET Index end-2024 target at 1550 (based on 16x forward PE), offering 18% upside
▪ Key themes: (i) continued tourism recovery (AOT, MINT), (ii) strong 2H24F earnings (ADVANC, AMATA, MASTER) and (iii)
revised conditions Thai ESG funds (CPALL, PTTEP)
Economic recovery gathering pace. Private consumption Measures to boost the stock market. The Finance Ministry
and tourism remain strong YTD. Exports are clearly and stock market regulators have announced measures
accelerating supported by strong agricultural exports. aimed at revitalizing the sluggish Stock Exchange of
Private investment is showing signs of improvement. Public Thailand (SET) Index. Instead of reintroducing the tax-
investment however remained weak in the first 4M24 but incentive long-term equity funds (LTFs) as previously
should pick up towards the rest of the year supported by anticipated by the market, regulators will propose revising
accelerating budget disbursements after the 2024 budget the investment conditions for Thai ESG (TESG) funds to
was royally endorsed and published in the Royal Gazette bolster the stock market. Under the proposed changes, the
on 26 April 2024. tax deduction cap would increase from THB100,000 to
THB300,000, and the holding period would be shortened
Political uncertainty continues to loom large as the
from eight years to five years. TESG funds will be required
Constitutional Court deliberates on two critical cases.
to invest at least 80% in Thai equities listed on both the SET
Firstly, the court is assessing whether Prime Minister
and MAI, focusing on those recognized for their ESG
Srettha Thavisin violated the constitution by appointing
performance or included in the Thai ESG Index (currently
Khun Pichit Chuenban, who has a prior conviction, to his
comprising 128 stocks, with plans to expand by another
cabinet. A guilty verdict would necessitate the resignation
200). The remaining investments could be directed towards
of the PM and his cabinet members. Subsequently, the
ESG bonds or green tokens. While the tax deduction cap
process to elect a new Prime Minister would return to
falls short of the earlier market expectation of THB 500,000
Parliament, but this time, the 250 caretaker senators would
for LTFs, this move is expected to positively impact the
not participate in voting, leaving the decision solely with the
market, potentially boosting market turnover by
500 members of the House of Representatives.
approximately THB30bn annually.
Secondly, the Constitutional Court is also examining
Additionally, regulators plan to implement further
whether the advocacy of amending Section 112 of the
regulatory amendments effective from July 1, 2024, aimed
Criminal Code by the Move Forward Party (MFP) constitutes
at strengthening market supervision and enhancing
a threat to the constitutional monarchy. A decision to
investor confidence. These include provisions for short
dissolve the MFP could lead to key party executives facing a
selling and program trading, with revised regulations
10-year ban from political participation. The remaining MPs
covering the qualifications of securities eligible for short
would have 60 days to join another party. Despite being an
selling, the pricing mechanisms for such transactions,
opposition party, the dissolution of MFP raises concerns
registration requirements for high-frequency trading (HFT)
about potential protests among its supporters.
investors, and enhanced information disclosure related to
investors engaged in inappropriate trading practices.
Page 23
Market Focus
Maintain end-2024 SET Index target at 1550. We are now Key themes for the market. We have three key themes for
expecting market EPS to grow 14% in 2024 and 9% in the market. These are:
2024. Our end-2024 SET Index target is maintained at 1550
• Continued tourism recovery. Tourist arrivals continued
(based on 16x forward PE) from 1550. Based on current
its positive momentum with total international tourist
forecast, the Thai market is now trading on a 2024 PE of
arrivals at 16.8m (+36% y/y) YTD up to 23 Jun 2024.
14.9x which is still below historical average P/E of about
Outlook remains bright as the government is now
16x. In terms of P/BV, the market is trading at 1.2x P/BV (-
planning for temporary visa exemption for tourists
2SD of its 10-year average) and approaching the pandemic
from additional countries. Our picks on this theme are
level while fundamentals are far stronger now.
Airports of Thailand (AOT TB) and Minor International
SET Index PE band (X) (MINT TB), which should see earnings improve nicely in
2024.
• Strong 2H24F results. Among the companies that are

likely to report strong 2H24 results include Advanced
Info Service (ADVANC TB), Amata Corporation (AMATA
TB), and Master Style (MASTER TB).
• Revised Thai ESG Funds. We believe C.P. ALL (CPALL

TB), and PTT Exploration & Production (PTTEP TB)
should be key targets for TESG Funds. We scanned
Source: DBS, SET, DBSVTH estimates through the top five stocks in the top 10 TESG funds
and found that these two stocks are among the top
five holdings in these funds.
SET Index PB band (X)
Source: DBS, SET, DBSVTH estimates

Price 28 Jun Target 12-mth EPS EPS PER PER Div P/BV
Mkt Cap Net Debt /
Company BB Code 2024 Price Target Rcmd Growth 24 Growth 25 24 25 Yield 24 24
(USD mn) Equity 24
(LCY) (LCY) Return (%) (%) (x) (x) (%) (x)
Tourism recovery
Airports of Thailand AOT TB 57.75 75.00 29.9% 22,461 BUY 125.1 23.5 41.7 33.8 0.7 6.5 cash
Minor International MINT TB 30.00 40.00 33.3% 4,631 BUY 52.8 10.0 20.3 18.5 1.9 2.1 0.8
Strong earnings
Advanced Info Service ADVANC TB 209.00 250.00 19.6% 16,924 BUY 6.0 9.2 20.2 18.5 4.4 6.5 0.8
Amata Corporation AMATA TB 22.40 30.00 33.9% 701 BUY 33.9 7.3 10.2 9.5 3.9 1.2 0.6
Master Style MASTER TB 62.75 70.00 11.6% 515 BUY 17.2 20.8 33.6 27.8 1.5 5.9 cash
Revised Thai ESG funds
CP ALL CPALL TB 55.00 80.00 45.5% 13,451 BUY 23.9 12.7 21.6 19.2 2.3 3.9 0.8
PTT Exploration & Production PTTEP TB 153.50 200.00 30.3% 16,515 BUY 0.1 -0.1 7.4 7.9 6.2 1.0 0.4
Source: DBSVTH, Bloomberg
Page 24
Market Focus
Indonesia
Analysts: Maynard Arif, maynardpriajaya@dbs.com
Indonesia Research Team
▪ Fed rate cut to drive better performance in 2H

▪ Macro: USD to peak after rate cut and continuity after change of guards
▪ JCI target revised to 7,750
Fed rate cut to drive better performance in 2H24 starting in late 3Q followed by another one in 4Q. Hence,
we expect Indonesia’s market to perform better in the
The Indonesian market underperformed in 2Q24 due to
latter part of 2H24 with improving investor sentiment and
the higher-for-longer narrative. However, our DBS Chief
foreign inflow driven by the Fed rate cut.
Economist maintains his view of two Fed rate cuts in 2H24,
Monthly foreign flows

Rptr Net Foreign Transactions Monthly
46.0
40.1
36.0
26.0
16.0 17.5
11.3 11.3
12.7
8.4 7.5 7.7 8.3 7.8

6.1 5.7
4.1
6.0 1.4 3.0
0.7 1.7 2.7
(4.0) (2.3)
(0.5)
(2.0)
(3.2) (4.1)
(4.4)
(7.6) (7.5) (8.1)
(14.0)
(14.4)
(18.7)
(24.0) (20.9) (20.1)
May-22
May-23
May-24
Mar-22
Jun-22
Sep-22
Mar-23
Apr-23
Sep-23
Mar-24
Jun-24
Dec-21
Apr-22
Jul-22
Dec-22
Jul-23
Dec-23
Jun-23
Apr-24
Oct-22
Oct-23
Feb-22
Aug-22
Nov-22
Feb-23
Aug-23
Nov-23
Feb-24
Jan-22
Jan-23
Jan-24
We believe foreign investors’ heavy sell off on the Indonesia Macro Outlook: Peak USD and continuity
market occurred in 2Q, as reflected by the net outflow of
The IDR has been under pressure in the face of USD
USD350mn to date vs. an inflow of USD1.8bn in 1Q24.
strength and fading erstwhile sources of strength. While
Investor interests are starting to return, but to safer asset
the FOMC officials’ median projection (June) is for just one
classes such as government bonds or Bank Indonesia (BI)
cut in 2024, our DBS economist sees two, with the first in
papers. Looking into 2H, aside from better sentiment,
September and the second in December. Therefore, we
attractive earnings yield vs. government bond yield should
expect the USD to peak once the Fed makes the cut. The
also drive interests from foreign investors back into
IDR outlook should improve afterwards to below 16,000
Indonesia equity. Moreover, the JCI corrected most among
against USD. The key risk to this scenario is asset price
ASEAN markets in 2Q24, with a valuation now compelling,
inflation, which could make the Fed hesitant.
trading at near -1SD below its 10-year mean PE.
Page 25
Market Focus
JCI vs. USD/IDR

JCI IDR/USD
7,500 16,500
7,000
15,900
6,500
6,000 15,300
5,500 14,700
5,000
14,100
4,500
4,000 13,500
Apr-22
May-22
Apr-23
May-23
Aug-23
Apr-24
May-24
Dec-21
Dec-22
Dec-23
Jan-22
Mar-22
Jun-22
Aug-22
Oct-22
Jan-23
Mar-23
Jul-22
Jun-23
Oct-23
Jan-24
Mar-24
Jun-24
Nov-22
Jul-23
Nov-23
Feb-24
Feb-22
Sep-22
Feb-23
Sep-23
JCI IDR/USD (RHS)
On the GDP front, our economist foresees stable GDP Revised JCI target
growth at around 5% this year and next, driven by
We revised down our year-end JCI index target to 7,750
domestic economy and investments. There will be a new
(from 7,990 previously) as we adjust our expectation on
government in October and the continuity promised by the
rate cut and earnings growth as well as recent multiple de-
President elect will be key to maintaining growth
rating across emerging markets. Our new target is pegged
momentum. The new government is also expected to
to a 13.8x blended forward PE, 1SD below the 10-year
increase disbursements towards social assistance projects,
mean PE. The Bloomberg consensus earnings growth has
just as subsidies are maintained. Concerns are that
been revised down to 11% for FY24F vs. 14% in the
borrowings may need to rise in tandem to fund additional
beginning of the year.
spending. In terms of policy rates, our baseline assumption
is that BI will pause for the rest of the year. However, there Relative to historical, the JCI index now trades at more than
is a probability of a hike given its focus on currency stability 1SD below its 10-year mean, at a very attractive 12.8x
in the near term. FY24F PE. In addition, the Indonesia market lacks the tech
sector to carry higher multiples. While the current multiple
JCI PE band (X) is not the cheapest in the region, the PEG ratio of 1.1 is
among the lowest vs. other ASEAN countries.
Themes
Rate sensitive: As we move from the higher-for-longer

narrative and into rate cuts, we believe investors should
start accumulating rate-sensitive stocks, although they may
remain volatile in the near-term. Some of these stocks have
corrected and now trade at attractive valuations, with
expectations toned down. Within this theme, our sector
picks are bank, cyclical, and telco. Our recommendations
are Bank Mandiri, Astra, Japfa, and Telkom.
• Bank Mandiri (BMRI IJ): We see Bank Mandiri is set to

benefit from its exposure to the corporate segment,
especially on loan growth. Bank Mandiri also has ample
coverage to buffer asset quality issues.
Page 26
Market Focus
• Japfa Comfeed (JPFA IJ): JPFA’s share price has Blue chips: We also recommend investors take advantage
performed quite well (+17% YTD vs. CPIN’s -4% YTD). of recent corrections to accumulate on blue-chip stocks
However, we believe there is still room for the street to with a steady growth outlook.
revise up if 2Q24 earnings turn out better than
• Bank Central Asia (BBCA IJ): With strong liquidity and
expected.
funding structure, BCA is well positioned among
• Astra International (ASII IJ): ASII offers a significant Indonesia banks to ride on the interest rate movement.
discount versus peers as fears of market share erosion Moreover, BCA’s asset quality remains healthy and
are overplayed. Its valuation has de-rated by 35% over historically, BCA has been able to maintain good asset
the past three years, with the stock now trading at 6.5x quality in challenging environments.
the FY25F earnings, -2SD below its three-year average
• Medikaloka Hermina (HEAL IJ): A promising patient
of 8.0x.
volume trend and new hospital expansion will drive
• Telkom (TLKM IJ): Telkomsel is set to benefit from its growth in 2024. We also see room for EBITDA margin
superior fixed broadband coverage. TLKM offers an improvement if HEAL can gain better patient mix with
earnings CAGR of 6% over FY23F-25F, coupled with a the COB programme.
yield over 5%.

Price Target 12-mth EPS EPS PER PER Div P/BV
Mkt Cap Net Debt /
(USD mn) Equity 24
Rates sensitive
Bank Mandiri 6,150 8,300 35.0% 35,676 BUY 2.1 10.6 10.4 9.4 0.1 2.1 -23.0
Japfa Comfeed 1,425 1,400 -1.8% 1,061 BUY 56.2 18.0 11.8 10.0 0.0 1.1 80.1
Astra International 4,460 6,000 34.5% 11,340 BUY -11.8 1.0 6.2 6.2 0.1 0.9 20.5
Telekomunikasi Indonesia\ 3,130 4,650 48.6% 18,600 BUY 7.2 6.5 11.6 10.9 0.1 2.2 24.1
Blue Chips
Bank Central Asia 9,925 10,875 9.6% 75,016 BUY 10.6 9.0 22.8 20.9 0.0 4.6 -84.4
Medikaloka Hermina 1,355 1,585 17.0% 1,269 BUY 37.8 18.5 33.0 27.8 0.0 4.3 27.0
Source: DBSVI, Bloomberg
Page 27
Market Focus
The Philippines
Analyst: Regional Research Team
▪ Year-end target unchanged at 6,700; we introduce end-June 2024 target of 7,000

▪ Our key calls for the market have so far played out within expectations this year
▪ Stay defensive, but prepare to shift to cyclicals on early recovery signs
We reiterate our end-2024 index target at 6,700 and unfolds. We remind our readers that a durable rally
introduce an end-June 2025 base case target of 7,000 emerges only when rates bottom and a cyclical recovery
takes hold.
Our cautious stance in the market has so far played out in
1H24, with our end-2024 index target of 6,700 now As we look ahead to the next 12 months, we introduce our
presenting an ample upside from current levels. Early in end-June 2025 base case index target of 7,000. We
the year, we argued that rallies driven by policy rate cuts recommend sticking to a defensive portfolio in the interim
are unlikely to be sustainable. We anticipated these rallies as growth has yet to bottom. We shift to cyclical names on
to be short-lived and fade as further economic weakness early and broadening signs of recovery.
Introducing our end-June 2025 target range
Index Target EPS Estimates in PHP (Δ) US 10-Year Implied

Target ERP
(1H25) FY24F FY25F FY26F Bond Yield F12 PE
547.65 617.97 667.59
Bull case 8,000 385 bps 4.25% 12.3x
(+9.5) (+12.8% ) (+8.0% )
535.34 594.20 635.80
Base case 7,000 430 bps 4.50% 11.4x
(+ 7.0% ) (+ 11.0% ) (+ 7.0% )
521.96 558.55 594.47

Bear case 6,000 480 bps 4.75% 10.5x
(+4.3% ) (+7.0% ) (+6.4% )
593.40 651.14 701.36
Consensus
(+18.5% ) (+9.7% ) (+7.7% )
Source: DBS, First Metro Securities
Key risk factors
Bear case of 6,000 Base case of 7,000 Bull case of 8,000

@ 4.75% US10Yr, ERP 480bps @ 4.50% US10Yr, ERP 430bps @ 4.25% US10Yr, ERP 385bps
Recovery is stronger-than-expected, with GDP

Economic performance bottoms out in the next
growing above-trend. This will be driven easing
Growth deceleration continues in the face of one or two quarters, setting the stage for a
inflation and interest rates, allowing for another
Economy
challenges to domestic consumption, weakened recovery toward end-2024 or early next year.
economic cycle to restart anew. Domestic
business sentiment, and the need for fiscal However, the path is uneven and economic
consumption remains a major driver amid a
consolidation. This validates/reinforces concerns activity remains below trend, with 5.3%/5.4%
resurgence of household spend and business
on the economic resilience narrative of PH. growth in 2024/25. Rate cuts, while expected,
activity. Rebound in global demand and mid-
will be shallow – keeping rates higher for longer.
term elections provide tailwinds to growth.
We forecast earnings to grow by 7%/11% in Above-trend economic growth should enable

Earnings
Demand destruction coming from extended FY24F/25F, following a moderation in FY23. This speedier growth in corporate earnings in our
period of high inflation and elevated interest is as we expect the impact of negative operating forecast horizon. Profit margins to widen as
rates would lead to tepid earnings growth. leverage to fade amid a moderate recovery in demand picks up strongly and cost of funding
demand as well as favourable base effects. eases.
Under these conditions, ERP rises to levels

ERP eases to 430bps to reflect our expected
Valuation
usually reserved for a heightened risk-off ERP reverts to mean at 385bps on constructive
recovery next year. In the US, the Fed sticks the
backdrop – at 480bps. US economy in a sweet PH economic growth. Meanwhile, the Fed shifts
landing and shifts policy rates toward neutral;
spot between growth and inflation warrant to an easing cycle to boost recovery in view of
thus, allowing for a normalisation of the yield
higher risk free rates, thus, resulting to slowing US economy and inflation.
curve with the US 10-year bond yield at 4.5%.
headwinds to EM market valuations.
Source: DBS, First Metro Securities
Page 28
Market Focus
Our key calls for the Philippines equities market: in cumulative rate cuts starting 3Q24. In addition, we do
not expect risk-free rates to fall drastically if the US
#1 Economy: On the lookout for green shoots. The
economy sticks the landing and data remains resilient.
economy remains vulnerable, but we see potential to
bottom out in the next two quarters. At this stage of the On the local front, DBS expects the BSP to keep rates
business cycles, we are now on the lookout for nascent steady for the remainder of 2024. The timing of policy cuts
signs of recovery. We turn our focus on the following high will hinge on three factors: (i) when the US Fed commences
frequency indicators: (i) money supply and excess liquidity; rate cuts, (ii) domestic inflation path, and (iii) peso’s
(ii) household sentiment and spending – consumer direction.
expectations survey, retail and motor vehicle sales, e-
#4 Foreign funds: Flows to remain muted. We recognise
commerce transactions, credit card and personal loans
that there is no compelling reason for foreign funds to
growth; (iii) total external trade momentum; (iv) tourist
enter the PH market yet, given: (i) high risk-free yields in
arrivals and receipts; and (v) inflation.
developed market equities – gone were the days of TINA
#2 Earnings: High-single to low-double digits growth for (“there is no alternative”) and passive investing; (ii) absence
FY24F/25F. Since 2023, we have articulated in several of popular and favoured investment themes – such as
reports that operating/financial leverage will work against Artificial Intelligence; and (iii) strong USD – not constructive
profitability amid cooling demand, sticky rise in costs, and for funds to be invested in EM markets.
higher interest rates. As the business cycle turns, we
Nevertheless, there is a case for foreign investors to
expect the impact of negative operating leverage to fade in
increase their allocation in Philippine equities. This is in
the face of a moderate recovery in demand as well as
view of: (i) market reforms being underway – removal of
favourable base effects.
minimum broker commissions, development of
#3 Valuations: Multiples to stay lower for longer. frameworks for short-selling and after-market VWAP
Disinflation and a moderation in economic activity justifies trades, proposed reduction of sales tax (from 0.6% to 0.1%
a shift towards a neutral monetary policy stance. However, through Capital Markets Efficiency Promotion Act); (ii)
amid sticky inflation and stronger-than-expected strength Philippines acting as a “friendshoring” beneficiary – which is
of the US economy, the timing and magnitude of rate cuts the act of increasing economic and trade
have been dialled back by consensus in recent months. engagements/activities with geopolitical allies; and (iii) the
Our DBS economists forecast the US 10-year bond yield return of the growth recovery narrative as the business
will remain elevated at 4.00% by end 2025 despite 150bps cycle restarts.
The economy remains vulnerable, but to bottom out in the next two quarters
Inflationary Pressures
Red = High
MID CYCLE: Typically the longest phase RECESSION: Economic activity

with moderate growth. Economic In 1H24, economic contracts, profits decline, and credit
activity gathers momentum, credit activity continued is scarce for businesses and
growth is strong, and profitability is to decelerate as consumers. Rates and business
healthy as monetary policy turns the business cycle inventories gradually fall, setting the
increasingly neutral. transitioned to the stage for recovery.
contraction phase.
RECOVERY EX PANSION CONTRACTION

EARLY CYCLE: Generally, a sharp recovery LATE CYCLE: Economic activity
from recession, as economic indicators often reaches its peak, implying
such as GDP and industrial production that growth remains positive but
move from negative to positive and growth slowing. Rising inflation and a tight
accelerates. More credit and low interest labor market may crimp profits
rates aid profit growth. Business inventories and lead to higher interest rates.
are low, and sales grow significantly.
Relative Performance of Economically Sensitive Stock s

Green = Strong
Source: DBS, Fidelity Viewpoint
Page 29
Market Focus
Stock picks are still elevated. Focus on counters with visible earnings
growth in the face of the ongoing economic slowdown. We
Stay defensive for now until we see nascent and
prefer counters with secular demand drivers, ability to
broadening signs of cyclical recovery. The market remains
maintain margins, and have strong balance sheets. Our top
vulnerable as growth has yet to bottom and interest rates
BUY picks are as follows:
% total return (incl.

Stock Call and
Stock Comments dividends) as of 25
Target Price (PHP)
Jun
Consumers
URC has secured raw materials supply and have implemented operational
Universal Robina Corp. efficiencies to allow EBIT to grow by 11.2%/10.3% in the next two years (FY24F/25F).
PHP145.00 41.9%
(URC PM) Moreover, valuations are at its cheapest in two years, trading at 16x FY24F P/E. Our
TP implies 23x FY24F P/E – still slightly below historical mean valuations (24x).
1Q24 earnings rose 27% y/y to PHP2.6bn, ahead of our estimates, led by robust
sales growth, improved gross margins, and operational efficiencies. However, we saw
Jollibee Foods Corp.
mixed SSSG results from foreign businesses. We keep watch of these developments PHP300.00 38.8%
(JFC PM)
for now. Our TP of PHP300.0 implies 37.6x FY24F EPS, in line with pre-COVID
valuations.
Financials
Recent share price correction is an opportunity to accumulate. Our TP implies

1.4x/1.3x FY24F/25F BV, equivalent to +1SD of historical mean. Our projections show
BDO Unibank
that BDO can still deliver multi-year high ROEs in the next two years at 13.8%/13.8% PHP152.00 20.3%
(BDO PM)
for FY24F/25F, in view of higher scope for lending activity, robust recurring NoII,
stable CIR, and higher dividend policy (at PHP1.00/sh per quarter, starting 2Q24).
Our TP is implies a 0.88x/0.81x FY24F/25F P/BV – at +2SD of historical mean

Metropolitan Bank & valuations. We think this is justified given our expectation of low double-digit ROE for
PHP75.00 19.9%
Trust (MBT PM) the bank, supported by loan expansion, steady NIM, stable CIR, and lower
provisioning.
REITs
MREIT is trading at an attractive 7.8%/7.8% yield on FY24F/25F DPU. Management

stands committed to make MREIT the biggest pure-play office REIT in Southeast Asia.
MREIT Inc.
Supported by its sponsor Megaworld Corp.’s (MEG), we are confident that achieving PHP14.06 18.8%
(MREIT PM)
this target is a low hanging fruit. Asset injections are just getting started, with MEG
having infused 12.7% of its total office GLA.
RCR is trading at 7.5%/7.7% yield on FY24F/25F DPU. The planned PHP33bn asset-
RL Commercial REIT Inc for-share swap is material and will significantly impact dividend generation with its
PHP5.64 15.7%
(RCR PM) more diversified rental income base and access to RLC’s breadth of real estate
assets (especially malls).
Real Estate
RLC has similar – if not better – asset quality and growth prospects versus most of its
Robinsons Land Corp. peers that command higher valuations. We argue there is room for re-rating in view
PHP22.50 55.9%
(RLC) of RLC’s resilient earnings growth, improving ROE, and strong balance sheet. Our TP
implies 8.6x/7.9x P/E on FY24F/25F earnings.
Telecommunications
We are of the view that broadband can grow faster than mobile as disposable
incomes increase, and that competition dynamics are not as intense. As a pure-play
Converge ICT Solutions operator in the fixed-line broadband space, we forecast CNVRG will deliver
PHP13.30 24.8%
(CNVRG PM) 7.3%/7.1% earnings growth in FY24F/25F – at a faster clip than its competitors with
mobile exposure. Our TP implies valuations expanding closer to peers, at 5.7x FY24F
EV/EBITDA.
We continue to like TEL given its strong positioning in both core telco segments –
fixed line and mobile. On one hand, it is the undisputed leader in fixed-line
PLDT Inc
broadband. On the other, TEL has always been a strong challenger to GLO in mobile. PHP1,430.00 11.1%
(TEL PM)
Our TP implies EV/EBITDA valuations at 5.7x/5.6x on FY24F/25F and a yield of
6.5%/6.7% on FY24F/25F dividends.
Source: DBS
Page 30
Market Focus
Price 12-mth 12-mth DPU / EPS DPU / EPS Div Div

28 Jun Target Target Mkt Cap Growth Growth PER PER Yield Yield P/BV Net D/E
Company (LCY) (LCY) Return (USDmn) Rcmd 24F (%) 25F (%) 24F (x) 25F (x) 24F (%) 25F (%) 24F (x) 24F
Consumer
Jollibee Foods Corp. (JFC PM) 226.0 300.0 34.1% 4,332 BUY 20.03 19.95 28.36 23.64 1.17 1.38 3.08 0.10
Universal Robina Corp. (URC PM) 111.2 145.0 34.0% 4,104 BUY 14.05 10.58 17.57 15.89 3.22 3.56 1.95 CASH
Financials
BDO Unibank, Inc. (BDO PM) 128.2 156.0 24.8% 11,550 BUY 2.88 10.49 8.97 8.11 2.93 3.12 1.20 -
Metropolitan Bank & Trust Co (MBT PM) 67.6 75.0 15.5% 5,174 BUY 11.82 1.90 6.43 6.31 7.40 4.44 0.79 -
REITS
RL Commercial REIT Inc. (RCR PM) 5.3 5.6 15.2% 959 BUY 2.56 2.50 12.50 12.21 7.62 7.81 0.88 -
MREIT Inc. (MREIT PM) 12.8 14.1 17.6% 609 BUY 2.08 1.02 12.67 12.55 7.66 7.73 0.68 -
Telecommunications
Converge ICT Solutions Inc. (CNVRG PM) 11.5 13.3 15.7% 1,423 BUY 7.14 7.50 9.58 8.91 - - 1.58 0.50
PLDT Inc. (TEL PM) 1,437.0 1,430.0 6.2% 5,287 BUY 2.00 1.87 13.43 13.18 6.43 6.65 2.65 2.00
Real Estate
Robinsons Land Cop. (RLC PM) 14.9 22.5 55.3% 1,228 BUY 9.21 9.58 5.71 5.21 5.91 4.27 0.50 0.30
Page 31
Market Focus
Fund flows
Singapore Hong Kong
▪ Robust net buying momentum by retail investors, while ▪ Foreign investors net sold RMB36.5bn A-shares through
institutional investors turned net sellers of financials after 14 stock connect MTD (through 25 June), while southbound
straight weeks as net buyers. recorded HKD76.5bn inflows.
SGX Institutional/Retail fund flows (in SGD mn) North/South-bound Stock Connect net buys
Local$ mn Northbound net buy (RMB mn)
60,000 Southbound net buy (HKD mn)
40,000
20,000
(20,000)
(40,000)
Sep-23
Aug-22
Mar-23
Jan-23
Jun-23
Mar-24
Jun-24
Dec-23
May-24
Apr-23
Nov-23
Nov-22
Jul-22
Oct-22
Jul-23
Feb-24
Source: DBS, SGX. Data up to week of 17th to 21st June Source: DBS, Bloomberg, CEIC
Thailand Indonesia
▪ Foreign investors remained net sellers on the Thai equity ▪ Foreign outflow has not subsided as pressures on the IDR
market in Jun 2024, with a net sell position of THB28.5bn. have yet to dissipate. Recent USD correction provided
YTD, foreign investors remained net sellers amounting to some relief and may help reduce late May’s outflow.
THB110.1bn.
Foreign flows Foreign flow into Indonesia equity

Rptr Net Foreign Transactions Monthly
46.0
40.1
36.0
26.0
16.0 17.5
11.3 11.3
12.7
8.4 7.5 7.7 8.3 7.8

6.1 5.7
6.0 1.4 3.0
0.7
4.1
1.7 2.7
(4.0) (2.3)
(0.5)
(3.2) (4.1)
(4.4)
(7.6) (7.5) (8.1)
(14.0) (10.7)
(18.7)
(24.0) (20.9) (20.1)
Dec-21
Mar-22
Jul-22
Sep-22
Dec-22
Mar-23
Jul-23
Sep-23
Dec-23
Mar-24
Apr-22
May-22
Jun-22
Apr-23
May-23
Jun-23
Apr-24
May-24
Oct-22
Oct-23
Jan-22
Feb-22
Aug-22
Nov-22
Jan-23
Feb-23
Aug-23
Nov-23
Jan-24
Feb-24
Source: DBS, SET Smart Source: DBS, Bloomberg
Page 32
Market Focus
The Philippines
▪ Foreign institutional investors net sold the local market by

USD27.5mn from 1-24 Jun. This brought YTD net outflows to
USD118.5mn as bond yields rose on expectations of
delayed/shallower rate cuts.
Foreign outflows netted USD118.5mn year-to-date
Source: DBS, EPFR Data
Page 33
Market Focus
Equities vs. bond yield

Singapore Hong Kong
▪ Net yield rose slightly above the +1SD levels as the 10-year ▪ The gap between his earnings yield and UST yield
yield continued its descent to 3.15% (3.36% in end-May) amid expanded to 7.4% in late June (from 6.5% in May) due to
stable STI earnings yield. recent market consolidation.
STI earnings yield vs. MAS 10-year yield (%) HSI earnings yield vs. 10-yr US treasury yield (%)
11.0
10.0
9.0
8.0
7.0
6.0
5.0
Jun-23
Dec-22
Dec-23
Sep-23
Sep-22
Mar-23
Mar-24
Source: DBS, Bloomberg Source: DBS, Bloomberg
Thailand Indonesia
▪ Thailand’s earnings yield gap has widened to 3.2%, with ▪ The 10-year government bond yield remained elevated,
earnings yield rising to 5.84% on the SET Index’s 2% MTD fall. c.7% for the most part. Investor sentiment remains soft,
Thailand’s 10-year treasury yield fell from 2.82% at end-May and outflows have not subsided as of now.
2024 to 2.69% at present.
Thailand’s Earnings Yield Gap (%) vs. SET Index Earnings yield vs. 5-yr ID gov’t bond yield (%)
Source: DBS Source: DBS
Page 34
Market Focus
The Philippines
▪ Risk premium spread rose to 380bps as growth narrative

changed, in line with our view of an economic and earnings
slowdown. In the next 12 months, we see room for ERP to
compress as nascent signs of cyclical recovery unfolds.
Earnings yields vs. 10YUST yield

(% )
12.0
10.0
8.0
6.0
4.0
2.0
0.0
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Earnings Yield % US 10Yr Yield %
Source: DBS
Page 35
Market Focus
DBS Group Research recommendations are based on an Absolute Total Return* Rating system, defined as follows:
STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)
BUY (>15% total return over the next 12 months for small caps, >10% for large caps)
HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)
FULLY VALUED (negative total return, i.e., > -10% over the next 12 months)
SELL (negative total return of > -20% over the next 3 months, with identifiable share price catalysts within this time frame)
*Share price appreciation + dividends
Completed Date: 4 Jul 2024 06:30:12 (SGT)

Dissemination Date: 4 Jul 2024 08:15:53 (SGT)
Sources for all charts and tables are DBS, DBSVTH, DBSVI unless otherwise specified.
GENERAL DISCLOSURE/DISCLAIMER
This report is prepared by DBS Bank Ltd, DBS Bank (Hong Kong) Limited (“DBS HK”), PT DBS Vickers Securities (Indonesia) (“DBSVI”), DBS
Vickers Securities (Thailand) Co Ltd (“DBSVTH”). This report is solely intended for the clients of DBS Bank Ltd, DBS Vickers Securities
(Singapore) Pte Ltd, its respective connected and associated corporations and affiliates only and no part of this document may be (i) copied,
photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBS Bank Ltd, DBS HK,
DBSVI, DBSVTH.
The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to
DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd, its respective connected and associated corporations, affiliates and their
respective directors, officers, employees and agents (collectively, the “DBS Group”) have not conducted due diligence on any of the
companies, verified any information or sources or taken into account any other factors which we may consider to be relevant or appropriate
in preparing the research. Accordingly, we do not make any representation or warranty as to the accuracy, completeness or correctness of
the research set out in this report. Opinions expressed are subject to change without notice. This research is prepared for general
circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation
and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in
substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial advice. The DBS Group
accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use
of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be
construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons
associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group, may have
positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment
banking and other banking services for these companies.
Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and
there can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or
risk assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete
or condensed, it may not contain all material information concerning the company (or companies) referred to in this report and the DBS
Group is under no obligation to update the information in this report.
This publication has not been reviewed or authorized by any regulatory authority in Singapore, Hong Kong or elsewhere. There is no
planned schedule or frequency for updating research publication relating to any issuer.
The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates
and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the
estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary
significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments
described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with
the aforesaid entities), that:
Page 36
Market Focus
(a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and
(b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or
risk assessments stated therein.
Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets.
Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies)
mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating
to the commodity referred to in this report.
On 3 June 2021, President J. Biden issued Executive Order 14032 (“the EO”), superseding Executive Order 13959 of 12 November 2020. The
EO, which takes effect on 2 August 2021, prohibits US persons from investing in publicly traded securities or derivatives thereof from firms
listed as Chinese Military-Industrial Complex Companies (“CMICs”). The list of CMICs can be found on the US Department of the Treasury’s
website at https://home.treasury.gov/policy-issues/financial-sanctions/consolidated-sanctions-list/ns-cmic-list.DBSVUSA, a US-registered
broker-dealer, does not have its own investment banking or research department, has not participated in any public offering of securities as
a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage in market-making.
ANALYST CERTIFICATION
The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the
companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of
his/her compensation was, is, or will be, directly or indirectly, related to specific recommendations or views expressed in the report. The
research analyst (s) primarily responsible for the content of this research report, in part or in whole, certifies that he or his associate1 does
not serve as an officer of the issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the
management company of the real estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of
the entity who is responsible for the management of the issuer or the new listing applicant) and the research analyst(s) primarily
responsible for the content of this research report or his associate does not have financial interests2 in relation to an issuer or a new listing
applicant that the analyst reviews. DBS Group has procedures in place to eliminate, avoid and manage any potential conflicts of interests
that may arise in connection with the production of research reports. The research analyst(s) responsible for this report operates as part of
a separate and independent team to the investment banking function of the DBS Group and procedures are in place to ensure that
confidential information held by either the research or investment banking function is handled appropriately. There is no direct link of DBS
Group's compensation to any specific investment banking function of the DBS Group.
COMPANY-SPECIFIC / REGULATORY DISCLOSURES

1. DBS Bank Ltd, DBS HK, DBS Vickers Securities (Singapore) Pte Ltd ("DBSVS"), DBSVUSA, or their subsidiaries and/or other affiliates
have proprietary positions in Frasers Centrepoint Trust, SATS, ST Engineering, Venture Corporation, Bank Central Asia, Advanced
Info Service, Minor International, Capitaland Ascendas REIT, Capitaland Ascott Trust, Mapletree Pan Asia Commercial Trust, Lam
Research Corp, SingTel, ComfortDelgro, Keppel Ltd, Airports of Thailand, CP ALL, PTT Exploration & Production, LendLease Global
Commercial REIT, Frasers Logistics & Commercial Trust, Mapletree Logistics Trust, Digital Core REIT, CapitaLand Integrated
Commercial Trust recommended in this report as of 31 May 2024.
DBS Bank Ltd, DBS HK, DBSVS, DBSVUSA, or their subsidiaries and/or other affiliates have proprietary positions in AAC
Technologies Holdings Inc (2018 HK), China Mobile Ltd (941 HK), Tencent Holdings Ltd (700 HK), Trip.com Group Ltd (9961 HK), Sun
Hung Kai Properties Ltd (16 HK), BYD Electronic International Co Ltd (285 HK), China Petroleum & Chemical Corp (386 HK) and Link
REIT (823 HK) recommended in this report as of 28 Jun 2024.
1
An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust
of which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another
person accustomed or obliged to act in accordance with the directions or instructions of the analyst.
2
Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an
issuer or a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or
analysis. This term does not include commercial lending conducted at arm's length, or investments in any collective investment scheme
other than an issuer or new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer
or a new listing applicant.
Page 37
Market Focus
2. DBS Bank Ltd, DBS HK, DBSVS, DBSVUSA, or their subsidiaries and/or other affiliates have a net long position exceeding 0.5% of the
total issued share capital in Frasers Centrepoint Trust, Capitaland Ascendas REIT, Capitaland Ascott Trust, Mapletree Pan Asia
Commercial Trust, LendLease Global Commercial REIT, Frasers Logistics & Commercial Trust, Mapletree Logistics Trust, Digital Core
REIT recommended in this report as of 31 May 2024.
3. DBS Bank Ltd, DBS HK, DBSVS, DBSVUSA, or their subsidiaries and/or other affiliates beneficially own a total of 1% or more of any
class of common equity securities of Frasers Centrepoint Trust, Capitaland Ascendas REIT, LendLease Global Commercial REIT,
Frasers Logistics & Commercial Trust, Mapletree Logistics Trust, Digital Core REIT as of 31 May 2024.
Compensation for investment banking services:

4. DBS Bank Ltd, DBS HK, DBSVS their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12
months for investment banking services from Frasers Centrepoint Trust, SATS, Capitaland Ascendas REIT, Capitaland Ascott Trust,
Mapletree Pan Asia Commercial Trust, Keppel Ltd, Frasers Logistics & Commercial Trust, Mapletree Logistics Trust, Digital Core
REIT, CapitaLand Integrated Commercial Trust, Sun Hung Kai Properties, Link REIT as of 31 May 2024.
5. DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA, within the next 3 months, will receive or intend
to seek compensation for investment banking services from Keppel Ltd, CapitaLand Integrated Commercial Trust as of 31 May
2024.
6. DBS Bank Ltd, DBS HK, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering
of securities for Frasers Centrepoint Trust, SATS, Capitaland Ascendas REIT, Capitaland Ascott Trust, Mapletree Pan Asia
Commercial Trust, Sun Hung Kai Properties, Keppel Ltd, Frasers Logistics & Commercial Trust, Mapletree Logistics Trust, Digital
Core REIT, CapitaLand Integrated Commercial Trust, Sun Hung Kai Properties Ltd in the past 12 months, as of 31 May 2024.
7. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of
securities as a manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons
wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any
security discussed in this document should contact DBSVUSA exclusively.
Directorship/trustee interests:
8. Sim S. LIM, a member of DBS Group Management Committee, is a Independent non-executive director of ST Engineering as of 03
Jun 2024.
9. Su Shan TAN, a member of DBS Group Management Committee, is a Director of Mapletree Pan Asia Commercial Trust as of 03 Jun
2024.
10. Jimmy NG, a member of DBS Group Management Committee, is a Director of Keppel Ltd as of 03 Jun 2024.
11. Tham Sai Choy, a member of DBS Group Holdings Board of Directors, is a Director of Keppel Ltd as of 31 Mar 2024.
12. Judy LEE, a member of DBS Group Holdings Board of Directors, is a Director of Mapletree Logistics Trust as of 31 Mar 2024.
Disclosure of previous investment recommendation produced:

13. DBS Bank Ltd, DBS HK, DBSVS, DBSVUSA, their subsidiaries and/or other affiliates may have published other investment
recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12
months. Please contact the primary analyst listed on page 1 of this report to view previous investment recommendations published
by DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12
months.
Page 38
Market Focus
RESTRICTIONS ON DISTRIBUTION
General This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or
resident of or located in any locality, state, country or other jurisdiction where such distribution, publication,
availability or use would be contrary to law or regulation.
Australia This report is being distributed in Australia by DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”) or
DBSV HK. DBS Bank Ltd holds Australian Financial Services Licence no. 475946.
DBS Bank Ltd, DBSVS. and DBSV HK are exempted from the requirement to hold an Australian Financial Services
Licence under the Corporation Act 2001 (“CA”) in respect of financial services provided to the recipients. Both DBS
and DBSVS. are regulated by the Monetary Authority of Singapore under the laws of Singapore, and DBSV HK is
regulated by the Hong Kong Securities and Futures Commission under the laws of Hong Kong, which differ from
Australian laws.
Distribution of this report is intended only for “wholesale investors” within the meaning of the CA.
Hong Kong This report is being distributed in Hong Kong by DBS Bank Ltd, DBS Bank (Hong Kong) Limited and DBS Vickers
(Hong Kong) Limited, all of which are registered with or licensed by the Hong Kong Securities and Futures
Commission to carry out the regulated activity of advising on securities. DBS Bank Ltd., Hong Kong Branch is a
limited liability company incorporated in Singapore.
This report has been prepared by a personnel of DBS Bank Ltd, who is not licensed by the Hong Kong Securities
and Futures Commission to carry on the regulated activity of advising on securities in Hong Kong pursuant to the
Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). This report is being distributed in Hong
Kong and is attributable to DBS Bank (Hong Kong) Limited (''DBS HK''), a registered institution registered with the
Hong Kong Securities and Futures Commission to carry on the regulated activity of advising on securities pursuant
to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). DBS Bank Ltd., Hong Kong
Branch is a limited liability company incorporated in Singapore.
This report has been prepared by an entity(ies) which is not licensed by the Hong Kong Securities and Futures
Comm ission to carry on the regulated activity of advising on securities pursuant to the Securities and
FuturesOrdinance (Chapter 571 of the Laws of Hong Kong). This report is being distributed in Hong Kong and is
attributable to DBS Bank (Hong Kong) Limited (''DBS HK''), a registered institution registered with the Hong Kong
Securities and Futures Commission to carry on the regulated activity of advising on securities pursuant to the
Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). DBS Bank Ltd., Hong Kong Branch is a
limited liability company incorporated in Singapore.
For any query regarding the materials herein, please contact Dennis Lam (Reg No. AH8290) at dbsvhk@dbs.com
Indonesia This report is being distributed in Indonesia by PT DBS Vickers Sekuritas Indonesia.
Malaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report,
received from ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in
connection with this report. In addition to the General Disclosure/Disclaimer found at the preceding page,
recipients of this report are advised that ADBSR (the preparer of this report), its holding company Alliance
Investment Bank Berhad, their respective connected and associated corporations, affiliates, their directors, officers,
employees, agents and parties related or associated with any of them may have positions in, and may effect
transactions in the securities mentioned herein and may also perform or seek to perform broking, investment
banking/corporate advisory and other services for the subject companies. They may also have received
compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other
services from the subject companies.
Wong Ming Tek, Executive Director, ADBSR
Page 39
Market Focus
Singapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS. (Company
Regn No. 198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and
regulated by the Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced
by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under
Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who
is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility
for the contents of the report to such persons only to the extent required by law. Singapore recipients should
contact DBS Bank Ltd at 6878 8888 for matters arising from, or in connection with the report.
Thailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd.
For any query regarding the materials herein, please contact Chanpen Sirithanarattanakul at research@th.dbs.com
United This report is produced by DBS Bank Ltd which is regulated by the Monetary Authority of Singapore.
Kingdom This report is produced by DBS Bank (Hong Kong) Limited (“DBS HK”). which is regulated by the Hong Kong
Monetary Authority
This report is produced by DBS Vickers Securities (Thailand) Co Ltd which is regulated by the Securities and
Exchange Commission, Thailand.
This report is produced by PT DBS Vickers Sekuritas Indonesia which is regulated by the Otoritas Jasa Keuangan
(OJK).
This report is disseminated in the United Kingdom by DBS Bank Ltd, London Branch (“DBS UK”). DBS UK is
authorised by the Prudential Regulation Authority and is subject to regulation by the Financial Conduct Authority
and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the
Prudential Regulation Authority are available from us on request.
In respect of the United Kingdom, this report is solely intended for the clients of DBS UK, its respective connected
and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or
duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBS UK, This
communication is directed at persons having professional experience in matters relating to investments. Any
investment activity following from this communication will only be engaged in with such persons. Persons who do
not have professional experience in matters relating to investments should not rely on this communication.
Dubai This communication is provided to you as a Professional Client or Market Counterparty as defined in the DFSA
International Rulebook Conduct of Business Module (the "COB Module"), and should not be relied upon or acted on by any
Financial person which does not meet the criteria to be classified as a Professional Client or Market Counterparty under the
Centre DFSA rules.
This communication is from the branch of DBS Bank Ltd operating in the Dubai International Financial Centre (the
"DIFC") under the trading name "DBS Bank Ltd. (DIFC Branch)" ("DBS DIFC"), registered with the DIFC Registrar of
Companies under number 156 and having its registered office at units 608 - 610, 6th Floor, Gate Precinct Building
5, PO Box 506538, DIFC, Dubai, United Arab Emirates.
DBS DIFC is regulated by the Dubai Financial Services Authority (the "DFSA") with a DFSA reference number
F000164. For more information on DBS DIFC and its affiliates, please see http://www.dbs.com/ae/our--
network/default.page.
Where this communication contains a research report, this research report is prepared by the entity referred to
therein, which may be DBS Bank Ltd or a third party, and is provided to you by DBS DIFC. The research report has
not been reviewed or authorised by the DFSA. Such research report is distributed on the express understanding
that, whilst the information contained within is believed to be reliable, the information has not been independently
verified by DBS DIFC.
Unless otherwise indicated, this communication does not constitute an "Offer of Securities to the Public" as
defined under Article 12 of the Markets Law (DIFC Law No.1 of 2012) or an "Offer of a Unit of a Fund" as defined
under Article 19(2) of the Collective Investment Law (DIFC Law No.2 of 2010).
Page 40
Market Focus
The DFSA has no responsibility for reviewing or verifying this communication or any associated documents in
connection with this investment and it is not subject to any form of regulation or approval by the DFSA.
Accordingly, the DFSA has not approved this communication or any other associated documents in connection
with this investment nor taken any steps to verify the information set out in this communication or any associated
documents, and has no responsibility for them. The DFSA has not assessed the suitability of any investments to
which the communication relates and, in respect of any Islamic investments (or other investments identified to be
Shari'a compliant), neither we nor the DFSA has determined whether they are Shari'a compliant in any way.
Any investments which this communication relates to may be illiquid and/or subject to restrictions on their resale.
Prospective purchasers should conduct their own due diligence on any investments. If you do not understand the
contents of this document you should consult an authorised financial adviser.
United States This report was prepared by DBS Bank Ltd, DBS Bank (Hong Kong) Limited (“DBS HK”), PT DBS Vickers Securities
(Indonesia) (“DBSVI”), DBS Vickers Securities (Thailand) Co Ltd (“DBSVTH”). DBSVUSA did not participate in its
preparation. The research analyst(s) named on this report are not registered as research analysts with FINRA and
are not associated persons of DBSVUSA. The research analyst(s) are not subject to FINRA Rule 2241 restrictions on
analyst compensation, communications with a subject company, public appearances and trading securities held by
a research analyst. This report is being distributed in the United States by DBSVUSA, which accepts responsibility
for its contents. This report may only be distributed to Major U.S. Institutional Investors (as defined in SEC Rule
15a-6) and to such other institutional investors and qualified persons as DBSVUSA may authorize. Any U.S. person
receiving this report who wishes to effect transactions in any securities referred to herein should contact DBSVUSA
directly and not its affiliate.
Other In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for
jurisdictions qualified, professional, institutional or sophisticated investors as defined in the laws and regulations of such
jurisdictions.
DBS Regional Research Offices

HONG KONG SINGAPORE
DBS Bank (Hong Kong) Ltd DBS Bank Ltd
Contact: Dennis Lam Contact: Andy Sim
13th Floor One Island East, 12 Marina Boulevard,
18 Westlands Road, Marina Bay Financial Centre Tower 3
Quarry Bay, Hong Kong Singapore 018982
Tel: 852 3668 4181 Tel: 65 6878 8888
Fax: 852 2521 1812 e-mail: groupresearch@dbs.com
e-mail: dbsvhk@dbs.com Company Regn. No. 196800306E
INDONESIA THAILAND
PT DBS Vickers Sekuritas (Indonesia) DBS Vickers Securities (Thailand) Co Ltd
Contact: Maynard Priajaya Arif Contact: Chanpen Sirithanarattanakul
DBS Bank Tower 989 Siam Piwat Tower Building,
Ciputra World 1, 32/F 9th, 14th-15th Floor
Jl. Prof. Dr. Satrio Kav. 3-5 Rama 1 Road, Pathumwan,
Jakarta 12940, Indonesia Bangkok Thailand 10330
Tel: 62 21 3003 4900 Tel. 66 2 857 7831
Fax: 6221 3003 4943 Fax: 66 2 658 1269
e-mail: indonesiaresearch@dbs.com e-mail: research@th.dbs.com
Company Regn. No 0105539127012
Securities and Exchange Commission, Thailand
Page 41

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Regional Market Focus

DBS Group Research. Equity 4 Jul 2024

A better half ahead for emerging Analysts

US election uncertainties ahead. The period from mid-August to late STOCKS

Watchlist the stock on Insights Direct to receive prompt updates

ed: JS/ sa: DT, PY, CS

Regional 2H 2024 Outlook & Strategy

Interest rate downtrend is about to start

DBS Fed median dot plot

Source: DBS, US Federal Reserve

US CPI headline, core and breakdown (y/y%, Jun22 to May24)

Source: Bloomberg, DBS

University of Michigan Consumer Sentiment

Source: Bloomberg, DBS

Source: Bloomberg, DBS

Rate cut beneficiaries

Source: DBS, DBSVI, First Metro, Bloomberg

US election uncertainties ahead

S&P500 YTD total return stood at 15% as of 24 June. This is

S&P500 total returns during US presidential election years

Source: DBS, Bloomberg

Various opinion polls show Trump has pulled ahead of

Favourable poll average difference between Trump and Biden

Source: Real Clear Politics, Bloomberg

Possible implications of US election outcome based on current front-runner candidates

Defence Republicans unveiled a proposal to − Trump victory potentially positive

Source: Bloomberg, DBS

China+1 stays in focus 2. With operations in South-East Asia, Singapore

Stock picks for China+1

Source: DBS, Bloomberg

Valuation and Outlook

DM outperformed EM in 1H24 heavyweight banks as the high-for-longer narrative

A better 2H for emerging markets

DBS economist sees the first 25bps cut taking place in

Source: DBS Bank

Source: DBS Bank

DBS forecasts regional currencies to bottom against the USD in 2Q

YTD vs. USD DBS forecast

Source: DBS Bank

3 changes in country outlook heading into the second half

DBS indices’ forecast – Regional markets valuations

Regional Outlook Summary

Close 2024 YE % from

We lift Indonesia’s outlook to Positive in anticipation of the

Sector valuation and growth

Sector valuation & growth

Sector valuation & growth

Ea rning s G row t h ( % )PER ( x) D iv Y ld ( % )

Sector valuation & growth

Source: DBSVTH, Bloomberg

Sector valuation & growth

Source: DBSVI, Bloomberg

Sector valuation & growth

EPS Growt h (%) PER (x) Div Yield (%)

▪ STI end-2024 target lifted to 3538 (prev. 3485)

Singapore macro datapoints – Electronics vs. Headline

NODX (%, y/y) Manufacturing PMI Ind. Prod. (%, y/y)

YTD-2024 visitor arrivals (% of 2019 levels)

Source: DBS, Singapore Tourism Board