DBS' picks for 2013

Themes to drive performance in 2013 : i) China offers the brightest spot,
urbanisation is the buzz word; ii) Hunting for yield + growth; iii)
Cyclicals trading on bombed out valuations

i)Beneficiaries riding on China's recovery are Midas, Capitamall Asia, Perennial China Retail Trust, Sound Global, United Envirotech and China Merchants.

ii)We focus on yield plays offering growth, either organically or via acquisitions - Mapletree Commercial Trust, Far East Hospitality Trust and China Merchants. Hutchison and
Religare offer the highest dividend yield with upside growth potential. Ezion stands out among the highest 3-year EPS CAGR of 41% in our coverage, yet trading on undemanding PE of 10x. Petra should be re-rated as a pure consumer play with a leading market position in fast growing Indonesia,
after divesting its cocoa ingredients business.

iii)Bomb out cyclicals. Higher risk appetite will drive capital inflows intocyclical stocks, ahead of recovery. NOL and Jaya are cyclical recovery plays, riding on improved freight rates, cost control measures and strategic repositioning. The worst is over for Wilmar, earnings recovering
on capacity expansion in Indonesia, improved refining margins in Malaysiawhile crushing margins have stabilised in China. Noble's earnings will rebound on healthier commodity demand and margin normalisation.

My take:
i)I am vested in Midas. The rest are too high now, while China Merchant does not look attractive.

ii)Ezion is too high. The rest, I'm not too keen.

iii)NOL, Wilmar and Noble looking good. I am watching closely.