Geopolitical worries (specifically North Korea) continue to impact the overall market sentiment, especially in Singapore. No one knows when the North Korean leader might make a drastic move, which is undoubtedly a huge concern for the world.

As such, we look at a model portfolio that DBS Research has been reviewing, modifying and watching closely.

There are a total of nine stocks in the portfolio, two blue chips, two growth and five dividend stocks. Clearly, DBS Research is adopting a very defensive stance.

Blue chips

Genting Singapore PLC (SGX: G13) – Positive news and earnings recovery point towards potential upside. Genting Singapore plans to adopt a capital efficient structure, repositioning of Resorts World Sentosa and possibly even bid for a Japanese casino next year. 12-month target price: $1.45

Genting Singapore PLC (SGX: G13) appeared as a growth stock too.

Thai Beverage Public Company Limited (SGX: Y92) – The corporate restructuring and monetisation of Thai Beverage’s stakes in its associates are positive signs. 3Q17 headline profits surged and year-to-date performance hints at an overall stronger growth year-on-year. 12-month target price: $1.07

Growth

China Aviation Oil (Singapore) Corporation Limited (SGX: G92) – It has a monopolistic position in China’s bonded jet fuel importing market and a one-third stake in the exclusive jet fuel refueller in Shanghai Pudong International Airport. Overall, its international jet fuel supply and trading business are also growing. 12-month target price: $1.62

mm2 Asia Limited (SGX: 1B0) – DBS Research expects healthy earnings per share (EPS) growth of 9.0% for 2018 and a whopping 34% for 2019. That’s even before factoring in the possibility of mm2 Asia’s acquisition of Golden Village. Its core production business and concert production and promotion company, UnUsUaL will be the main drivers of growth over the next two years. 12-month target price: $0.60

Dividends

CapitaRetail China Trust (SGX: AU8U) – It is holding assets that show growth and acquisition potential. Positive rental reversions and revamps at several malls will bring about organic growth while acquisitions will bring about inorganic growth. DBS Research recently added this stock on 15 September 2017. 12-month target price: $1.70

Far East Hospitality Trust (SGX: Q5T) – DBS Research expects the demand-supply imbalance to be relieved by 2018. As such, we should expect some form of recovery in share price in the mid-term, along with better earnings and dividend payouts. 12-month target price: $0.70

Frasers Logistics & Industrial Trust (SGX: BUOU) – DBS Research sees a potential yield of close to 7.0%. Furthermore, it has an under-geared balance sheet, which could potentially surprise the market with acquisitions. That’s if its sponsor, Frasers Centrepoint Limited, were to execute the acquisitions. 12-month target price: $1.15

Keppel REIT (SGX: K71U) – As the market expects the Singapore office market to pick up, Keppel REIT’s exposure to Premium Grade A buildings puts it in a great position to benefit. Furthermore, the management mentioned it was open to distributing capital gains to smoothen the dividend yield. 12-month target price: $1.25

Mapletree Greater China Commercial Trust (SGX: RW0U) – DBS Research looks at the prospective yield of about 7.0% for this REIT in 2018 as attractive since that’s one of the highest among large-cap REITs. Moreover, in contrast to its large-cap REIT peers that are trading near book value or even at a premium, this REIT is trading at a huge 11% discount to book value. 12-month target price: $1.25