DBS Group Research Model Portfolio - Balanced
Your investment goal is a balance between capital growth and income. You can tolerate some fluctuations in the value of your stock investment in anticipation of a higher return. The investment horizon is up to 12 months.
The Balanced portfolio gained 4.2% on an average return basis, underperforming the STI’s 10% gain. The top performer was ARA Asset Management followed by Mapletree Commercial Trust. We remove Mapletree Commercial Trust as the stock has exceeded our $1.40 TP with a 7.5% return. We also remove Ascendas REIT as the potential upside to TP narrows to less than 5%. We add Mapletree Logistics Trust as the trust returns to a growth path, offers a yield of 7.6% and a potential 17% upside to TP.
FRASERS CENTERPOINT LIMITED
- Higher recurring earnings base at close to 70% of topline offer good earnings stability.
- Potential asset sales to listed REITs to be positive catalyst.
Company Guide:
VENTURE CORP
- Attractive at 13x 1-year forward PER and 6.2% yield.
- Big beneficiary of strong USD as 99% of sales in USD to US and Europe while benefitting at the same time from weak Ringgit as 60% of manufacturing cost is based in Malaysia.
Company Guide:
SIA ENGINEERING
- Worst could be over on the earnings front.
- Possibility of special dividends around the corner. Better entry point now.
Company Guide:
MAPLETREE LOGISTICS TRUST
- Acquisitions and developments to drive growth; completion of various AEIs to underpin medium-term growth.
Company Guide:
ARA ASSET MANAGEMENT
- Attractive valuations and yield of c.4% to 5%.
- ARA has S$150m war chest, and is well positioned to capture opportunities that may arise in 2016.
Company Guide:
Previous Report:
Singapore Research Team
DBS Vickers
|
http://www.dbsvickers.com/
2016-03-17
