114730.1.0

REGIONAL DAILY

April 6, 2015

IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT.

Compiled as @: 4/6/2015 1:18:58 AM

ASIA PACIFIC

Asia Pacific Daily 6 April 2015 | AM Edition

Equity Research Reports

Regional/ASEAN/Asia Pacific Plantations (NEUTRAL) - Funding for biodiesel subsidies | P2

China/Hong Kong China Mengniu Dairy (ADD, tp:HK$44.30) - NDR takeaways | P3

Malaysia Hartalega Holdings (HOLD, tp:RM8.23) - Higher expenses ahead | P4 RHB Capital Bhd (ADD, tp:RM10.50) - Restructuring for tax efficiency | P5 Banks (UNDERWEIGHT) - A rush for liquidity | P6

Singapore Nam Cheong (HOLD, tp:S$0.32) - Reality bites II | P7

Sources: CIMB. COMPANY REPORTS

Showcasing CIMB Research

Research Ideas CHN: Banks 31/03

Trade lower earnings for a cleaner bal. sheet >PDF

TW: Pegatron 23/03 Dont rush to sell >PDF

THB: Bangkok Dusit Med Service 16/03 A grand vision >PDF

HKG: Environmental 15/03 Bright future >PDF

HKG: Bank of China 11/03 Closing the valuation gap >PDF

Reg. Equity Research Contacts

Chris HUNT Regional Head of Research T: (852) 2539 1315 E: [email protected]

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Page 1

CommoditiesPlantations

April 5, 2015

IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. Designed by Eight, Powered by EFA

ASEAN PLANTATIONS

SECTOR FLASH NOTE

Funding for biodiesel subsidies Indonesia is reportedly planning to impose levies of US$50/tonne and US$30/tonne on exports of CPO and processed palm oil, respectively, to fund the biodiesel mandates, as early as this month. We estimate this will provide the government with around US$885m in revenue and could potentially subsidise 2.5m tonnes of biodiesel at Rp4,000 per litre. Our assessment is that such a move would be slightly positive for downstream producers due to the tax gap between refined and CPO products in the short-term, but it would be negative for upstream producers as it could lower the current CPO price in Indonesia. However, this could be offset by medium-term gains from higher CPO prices for planters if the move boosts biodiesel usage significantly. Maintain Neutral. First Res, AALI and SIMP are our top picks.

What Happened According to a Bloomberg report, Indonesia will impose export levies to fund biodiesel subsidies, replanting, research and development. Shippers will pay a levy of US$50 per tonne for crude palm oil and US$30 per tonne for processed palm oil starting this month, coordinating minister for economic affairs Sofyan Djalil was quoted as saying. The government will keep the threshold for applications of a separate export tax at US$750 per tonne, he added (see Fig 1). He also said that the fund will be used to compensate the price difference between regular diesel and biodiesel. On top of this, it will also be used to help replanting, research and development and human resources development, related to palm oil industry. The levy will be paid even when the export tax is zero and will be taken from export tax proceeds when prices are above US$750 per tonne.

What We Think The news is not a surprise as we flagged this potential move in our earlier note. We gather from sources that this will be implemented soon and the proceeds from this tax will be used partially to fund a biodiesel subsidy. We believe this proposed tax levy, which will be applied when CPO export tax is zero, will ensure the Indonesian government receives a more stable tax revenue from the planters to fund the biodiesel mandates. Our rough calculation suggests the Indonesian government could potentially collect US$885m from the tax levy per annum. This is based on the assumptions that (1) Indonesia exports around 72% of its 2015 projected palm output of 32.5m tonnes; and (2) 40% of its palm exports are CPO and 60% processed palm products. We estimate this will be able to fund around 2.5m tonnes of biodiesel at Rp4,000 per litre. (Fig 3) We view this move to be short-term negative for the pure upstream palm oil players (CPO price in Indonesia could trade at as much as US$50 per tonne or 8% below the current CPO price of US$625 per tonne) and slight positive for downstream players (enjoy a wider processing margin due to the tax levy differential between processed palm products and CPO of US$20 per tonne). We maintain our view that if this move is successful in boosting biodiesel demand and palm oil usage in Indonesia due to the more attractive feedstock prices, the palm oil producers could, in time, benefit from stronger CPO prices.

What You Should Do Our current CPO price assumptions for Indonesian planters, which already include relevant export tax rates for Indonesia, are unlikely to be affected by this move. However, the potential tax levy may negatively impact current CPO prices in Indonesia, which is currently at zero export tax. We plan to review our CPO price assumptions to incorporate this development soon.


CIMB Analyst(s)

Ivy NG Lee Fang, CFA T (60) 3 2261 9073 E [email protected]


Page 2

Food & BeveragesHong Kong

April 3, 2015


NDR takeaways Early in the week, we took Mengnius management on a non-deal roadshow (NDR) in Singapore. We expect Mengnius volume growth to improve in FY15, and that it will continue to benefit from margin expansion. We maintain our DCF-based target price of HKD44.3 and Add rating in view of its new product launches and the reducing raw milk costs.

What Happened During Mengnius NDR, management revealed that increasing promotions for its basic UHT milk and new products are drivers for volume growth in FY15. It expects volume growth to recover back to 5% yoy in FY15, and that a mix upgrade will lead to 4-5% ASP improvement. Mengniu launched its own brand of imported UHT milk (from Denmark and New Zealand) and cereal UHT milk in Nov 2014, and room temperature kids yoghurt early this year. It plans to launch more chilled yoghurt products this year, leveraging on Danones R&D capability. Its yoghurt segment achieved 36.7% yoy sales growth in FY14. Excluding the Rmb200m sales contribution from Danone yoghurt (only consolidated for 2H14), the yoghurt segment achieved organic sales growth of 33%. Management targets 20-25% yoy yoghurt sales growth in FY15. UHT sales rose 7.5% yoy in FY14, and management expects mid to high single-digit growth in FY15. Milk beverage sales growth slowed to 7.0% yoy in 2H14, from 23.1% yoy in 1H14, mainly due to the maturity of Suan Suan Ru. Mengniu has upgraded the packing of Suan Suan Ru and expects milk beverage sales growth to be in a high single-digit in FY15. It had cut 80 underperforming ice cream SKUs in FY14, leading to 10.2% sales drop in that segment. In FY15, it will launch new ice cream products and targets positive growth for the year.

What We Think Mengniu will use up imported milk powder in 1Q15, but domestic milk powder made from extra raw milk will only be used up by 3Q/4Q15. Management expects raw milk cost reduction of 2-3% yoy in FY15. We expect overall GPM (incl. Yashili) to expand by 0.7% pts yoy to 30.3% in FY15, driven by the 3% raw milk price reduction and 4.2% ASP increase. Star and opportunity brands with higher GPM contributed 39.7% to total sales in FY14, and Mengniu targets to drive this ratio up to 45% over the next three years.

What You Should Do Mengniu posted low single-digit volume growth in 1Q15. Management has yet to see a strong dairy demand recovery. As the company will continue its promotions to drive up volume growth, we now expect distribution expenses ratio to rise by 0.3% pts to 21.4% in FY15, and OPM to rise by 0.6% pts to 5.9%.

CIMB Analyst(s)

Lei YANG, CFA T (86) 21 5047 1771 x108 E [email protected]

Nora MIN T (86) 21 5047 1771 x109 E [email protected]

Share price info

Share price perf. (%) 1M 3M 12M

Relative 13.5 19.2 -10.9

Absolute 15.1 25.1 1.3

Major shareholders % held

COFCO 16.3 Danone 9.9 Arla 5.3


China Mengniu Dairy FLASH NOTE

2319 HK / 2319.HK Current HK$40.10

Market Cap Avg Daily Turnover Free Float Target HK$44.30

US$10,136m US$23.69m 68.7% Prev. Target HK$44.30 HK$78,581m HK$183.7m 1,957 m shares Up/Downside 10.5%

Conviction| |


62.0

74.5

87.0

99.5

26.0

31.0

36.0

41.0

Price Close Relative to HSI (RHS)

Source: Bloomberg

510152025

Apr-14 Jul-14 Oct-14 Jan-15

Vol m

Financial Summary

Dec-13A Dec-14A Dec-15F Dec-16F Dec-17F

Revenue (Rmbm) 43,357 50,049 54,560 60,132 64,985Operating EBITDA (Rmbm) 3,054 4,566 5,837 6,723 7,497Net Profit (Rmbm) 1,631 2,351 2,804 3,322 3,859Core EPS (Rmb) 0.88 1.20 1.43 1.70 1.97Core EPS Growth 19.8% 36.3% 19.1% 18.5% 16.2%FD Core P/E (x) 36.32 26.65 22.37 18.89 16.26DPS (Rmb) 0.20 0.28 0.33 0.40 0.46Dividend Yield 0.62% 0.87% 1.04% 1.24% 1.43%EV/EBITDA (x) 20.58 14.70 10.96 9.00 7.51P/FCFE (x) 28.08 NA 45.35 14.58 11.90Net Gearing 26.0% 21.6% 7.1% (5.7%) (18.5%)P/BV (x) 3.77 2.90 2.64 2.38 2.13ROE 11.5% 12.8% 12.4% 13.2% 13.8%CIMB/consensus EPS (x) 1.03 1.04 0.99

40.10

44.30

27.60 42.75

Target

52-week share price range

Current

SOURCE: CIMB, COMPANY REPORTS

Page 3

Rubber GlovesMalaysia

April 3, 2015


Higher expenses ahead From our recent meeting with Hartalegas management, we felt that the operating environment in the next two years will be tougher due to increasing competition. To protect market share, the group aims to complete its new NGC two years earlier, which will raise capex/year. To fund the accelerated expansion, Hartalega will draw down some of its credit facilities. The higher interest expense and depreciation cost are expected to weigh on its bottomline in the near term. We cut FY15-16 EPS to factor in mainly (i) stronger US$ against RM (ii) higher interest expense and (iii) higher depreciation cost. This reduces our target price which is based on 2-year historical P/E of 21x CY16. We downgrade the stock to Hold. We prefer Kossan.

What Happened During our meeting recently, we gather that (i) The group is on track to complete its first two new plants in NGC by 1QCY16 and most of the capacity is gradually been taken up. (ii) It is converting its Plant One to warehouse and will be decommissioning Plant Two in the near future as the lines are old and inefficient. (iii) It is also expanding into specialty glove manufacturing which commands higher margins. (iv) It expanded its OBM business into China and India to tap into the growing markets although margins are low. (v) ASP is likely to continue to decline due to increasing competition. (vi) It is likely to incur the bulk of the ESOS expense in FY16 for its proposed ESOS programme.

What We Think We think that Hartalega is unlikely to achieve our previous earnings forecast due to the (i) delay of the commencement of its new production lines; (ii) competitive environment and (iii) higher capex and borrowings to fund its accelerated expansion plan. Management is of the view that ASP is likely to drop by 2-3% more while FY16 and FY17 net profit margin could come in at between 18% to 20% respectively, which concurs with our view that margin pressure is inevitable given its premium pricing. Aside from competition, its expansion into natural rubber gloves segment and emerging countries will also weigh on its margins. Fortunately, Hartalega has huge room to sustain the margin despite pressure given its superior margin as compared to its peers. Stronger US$ against RM will also help to buffer the impact of pricing pressure.

What You Should Do Investors should stay on the sidelines. The share price has appreciated by 17% since our upgrade on 23 Jan 2015 and we believe the current share price has factored in the strong earnings growth in FY16.

CIMB Analyst(s)

EING Kar Mei, CFA T (60) 3 2261 9085 E [email protected]

Share price info


Relative 5.5 16.9 30.1

Absolute 6.3 21.4 29.0


Kuan family 55.1 EPF 7.9 BNP Paribas 6.8


Hartalega Holdings FLASH NOTE

HART MK / HTHB.KL Current RM8.50

Market Cap Avg Daily Turnover Free Float Target RM8.23

US$1,853m US$1.13m 30.2% Prev. Target RM8.42 RM6,798m RM4.11m 820.0 m shares Up/Downside -3.2%

Conviction| |


81.089.698.1106.7115.3123.9132.4141.0

5.405.906.406.907.407.908.408.90

Price Close Relative to FBMKLCI (RHS)

Source: Bloomberg

1

2

3

4


Vol m

Financial Summary

Mar-13A Mar-14A Mar-15F Mar-16F Mar-17F

Revenue (RMm) 1,032 1,107 1,124 1,458 1,853Operating EBITDA (RMm) 335.9 351.3 342.5 460.0 551.7Net Profit (RMm) 233.3 232.8 213.1 282.2 334.4Core EPS (RM) 0.28 0.28 0.26 0.34 0.41Core EPS Growth 15.5% (0.7%) (8.0%) 32.4% 18.5%FD Core P/E (x) 29.89 30.10 32.71 24.70 20.84DPS (RM) 0.13 0.13 0.13 0.17 0.20Dividend Yield 1.53% 1.53% 1.53% 2.02% 2.40%EV/EBITDA (x) 20.25 19.37 19.82 15.25 12.88P/FCFE (x) 62.8 189.4 NA 525.8 54.9Net Gearing (22.2%) (17.6%) (14.4%) 3.1% 8.5%P/BV (x) 9.13 7.40 5.52 4.96 4.43ROE 33.7% 27.1% 19.3% 21.2% 22.5%% Change In Core EPS Estimates (3.33%) (5.35%) (1.31%)CIMB/consensus EPS (x) 0.92 0.97 1.01

8.50

8.23

5.74 8.69

Target


Current


Page 4

BanksMalaysia

April 5, 2015


Restructuring for tax efficiency According an article in The Edge, RHBCap plans for internal reorganisation to enable RHB Bank to take over the listing status of RHBCap and house all the entities of the group. This does not come as a surprise to us as the management has guided for possible corporate restructuring. This would be marginally positive for the group as it could lead to tax savings. However, the overall impact of the deal would be negative if it includes an EPS-dilutive rights issue. Our DDM-based target price (COE of 11.8%; LT growth of 4%) is intact. Despite the possible rights issue, RHBCap remains an Add and our top pick for the sector due to the potential re-rating catalysts of: 1) robust loan growth, and 2) benefits from the IGNITE 17 transformation programme.

What Happened Over the weekend, The Edge published an article stating that RHBCapital (RHBCap) is considering internal reorganisation that would make RHB Bank the listed entity, taking over RHBCap, and the holding company for all the entities in the group. The purpose of this move is to improve the groups tax efficiency, as it would enable RHB Bank to use its income to reduce some of its tax expenses. The deal may involve a rights issue that could lower its double-leverage ratio from above 130% now to 120%.

What We Think The news was not a surprise to us because the management has been guiding that it plans for corporate restructuring (please refer to our reports on 1 Mar 15 and 17 Mar 13). However, The Edge article provided more clarity on the restructuring, including managements rationale and the possible deal structure. The proposed new structure is akin to those of Maybank and Public Bank, whereby the commercial banks house all the entities in the group.

The internal reorganisation per se would be slightly positive for the group as it would lead to some tax savings. However, the overall impact of the deal would be negative if it involves a rights issue due to its dilutive effect on EPS. The management was not able to provide us with guidance on the quantum of the rights issue as the group is still in discussions with the central bank.

What You Should Do Stay invested in RHBCap for its bright earnings outlook, emanating from: 1) robust loan growth, and 2) the benefits from its IGNITE 17 transformation programme. We would revise our target price and recommendation upon the announcement of the internal reorganisation exercise.

CIMB Analyst(s)

Winson NG, CFA T (60) 3 2261 9071 E [email protected]

Share price info


Relative 0.3 1.5 -3.9

Absolute 1.0 6.2 -5.0


EPF 41.0 Aabar Investments 21.9 OSK Holdings 9.8


RHB Capital Bhd FLASH NOTE

RHBC MK / RHBC.KL Current RM8.00

Market Cap Avg Daily Turnover Free Float Target RM10.50

US$5,609m US$3.04m 37.1% Prev. Target RM10.50 RM20,580m RM10.99m 2,573 m shares Up/Downside 31.3%

Conviction| |


91.095.299.3103.5107.7111.8116.0

6.807.307.808.308.809.309.80

Price Close Relative to FBMKLCI (RHS)

Source: Bloomberg

5

10

15


Vol m

Financial Summary


Net Interest Income (RMm) 3,275 3,291 3,401 3,587 3,814Total Non-Interest Income (RMm) 2,676 2,944 3,533 3,861 4,218Operating Revenue (RMm) 5,951 6,235 6,934 7,448 8,033Total Provision Charges (RMm) (448.0) (206.3) (467.1) (448.9) (503.3)Net Profit (RMm) 1,831 2,038 2,244 2,450 2,679Core EPS (RM) 0.73 0.80 0.87 0.95 1.04Core EPS Growth (4.36%) 9.59% 9.58% 9.16% 9.34%FD Core P/E (x) 11.01 10.05 9.17 8.40 7.68DPS (RM) 0.16 0.06 0.26 0.29 0.31Dividend Yield 2.04% 0.75% 3.27% 3.57% 3.90%BVPS (RM) 6.57 7.31 7.63 8.32 9.08P/BV (x) 1.22 1.10 1.05 0.96 0.88ROE 11.5% 11.5% 11.7% 11.9% 12.0%% Change In Core EPS Estimates 0% 0% 0%CIMB/consensus EPS (x) 1.07 1.09 1.12

8.00

10.50

7.06 9.50

Target


Current


Page 5

Financial ServicesBanks

April 3, 2015


MALAYSIA BANKS

SECTOR FLASH NOTE

A rush for liquidity Bank Negara recently issued guidelines for the liquidity coverage ratio (LCR), which state that banks need to reach a minimum LCR of 60% by 1 Jun 15. This has stirred up competition for retail (and fixed) deposits as these carry lower run-off rates for the calculation of LCR and will help banks to increase their LCR. The consequence is an increase in banks cost of funds, aggravating the margin contraction when lending yields are still falling. Overall, we remain Underweight on the sector, predicated on margin contraction, weaker loan growth and an upturn in credit cost. Our preferred stock for the sector is RHB Capital.

What Happened Our channel checks revealed that Bank Negara Malaysia released official guidelines for the liquidity coverage ratio (LCR) on 31 Mar 15. The new guidelines state that banks need to maintain a minimum LCR of 60% starting 1 Jun 15, to be stepped up gradually to 100% by 1 Jan 19. The LCR is defined as stock of high-quality assets divided by total net cash outflows over the next 30 calendar days. The guidelines encourage banks to increase their retail deposits, which are relatively stickier in nature. The rationale for the new ruling is to protect banks from any liquidity stress, as was experienced by some US/European banks during the 2009 financial crisis. At the moment, banks do not officially disclose their LCRs but a few banks, i.e. Maybank, Public Bank, RHB Capital and Alliance, have said that they are able to meet the requirements.

What We Think Deposit competition has been heating up since 3Q14 due to (1) the new LCR ruling, and (2) tighter industry liquidity. The root of the problem was the slow expansion of the industrys deposits. Total deposits for the banking system only grew by 8.3% in 2013 and 7.6% in 2014, not adequate to fund loan growth of 10.6% and 9.3% in the respective years. The growth of retail deposits, which are at the heart of deposit competition, was even weaker at only 6.7-6.9% in 2013-14. We do not see any factors that will significantly drive deposit momentum in 2015 and, hence, competition will remain intense for banks.

We think that the new guidelines pose long-term problems for banks. Even if they can achieve the minimum requirements, banks will have to compete on deposits to keep their ratios above these levels. Banks with weaker deposit franchises, like AMMB, will have to offer better rates to attract deposits and, hence, rate competition will not subside. The only reprieves will be (1) relaxation of the requirements, and (2) faster expansion in the industrys deposits but we do not expect these to materialise any time soon.

What You Should Do We continue to advise investors to cut their exposure to the sector as banks have to grapple with slower loan growth and higher deposit costs in 2015, not to mention the continuous thinning of average yields of their mortgage books. Another concern is the expected rise in credit costs.


CIMB Analyst(s)

Winson NG Gia Yann, CFA T (60) 3 2261 9071 E [email protected]


Page 6

Offshore & MarineSingapore

April 5, 2015


Reality bites II Taking our cue from its lacklustre sales in 1Q15, we downgrade Nam Cheong from Add to Hold. We concede that we were over-bullish in expecting Nam Cheong to sustain its 2014 sales momentum. We previously expected it to sell around 30 vessels p.a. in 2015-17. We now expect Nam Cheong to sell 19-22 vessels in 2015-17, which would bring sales to 2012 levels (the year of recovery for the OSV sector). This, coupled with the scaling back of shipbuilding gross margins from 17.7% to 17%, leads us to cut FY15-17 EPS by 7-23%. Our target price, still based on 7.5x CY16 P/E (1 s.d. below the 5-year mean of small/mid-cap oil services companies), drops accordingly. We would revisit the stock upon stronger-than-expected vessel sales and earnings.

What Happened Taking cue from its lacklustre sales in 1Q15, we downgrade Nam Cheong from Add to Hold. Since our initiation on the stock in mid-2013, we maintained our Add rating for two years. The companys performance justified a positive call, as it recorded two consecutive years of record-breaking earnings and vessel sales. In fact, it was the top performer in our O&M coverage universe in 2014, as the only stock that did not lose money. However, we concede that we were over-bullish to expect Nam Cheong to sustain its 2014 sales momentum.

What We Think Nam Cheong sold two vessels (one accommodation work vessel at estimated US$30m to Marco Polo and one 12,000 bhp AHTS at estimated US$28m to Topaz Energy) in 1Q15. 1Q15 represented the lowest number of sales in a quarter since 2012 and is on par with the weakness in 4Q14 subsequent to the oil price tumble. On average, Nam Cheong has sold six vessels/quarter since 2012. On average, 1Q makes up 22% of the total number of vessels sold in a year. Hence, the fact that merely two vessels were sold in 1Q15 puts a question mark on our 30-vessel sales target for 2015. However, we note that 1Q12 made up 14% of the number of vessels sold that year, as 2012 was a backend-loaded year. We expect a similar scenario in 2015. In addition, the market prices for the accommodation work vessel and 12,000 bhp AHTS in 2014 were US$30m-32m/vessel. The ~10% discount indicates narrowing gross margins, leading us to temper our expectations (FY14: 19.3% vs. FY15: 17%). In fairness, the delivery lead time for the 12,000 bhp AHTS is long and thus, it is priced more as a build-to-order vessel.

What You Should Do Given its RM1.7bn order book, we expect Nam Cheong to achieve decent 1Q15 net profit of RM50m. We recommend that investors sell into strength and downgrade Nam Cheong from Add to Hold. We advise investors to switch to our top small/mid-cap O&M pick, Swissco (SWCH SP, Add).

CIMB Analyst(s)

YEO Zhi Bin T (65) 6210 8669 E [email protected]

Share price info


Relative -1.5 -10.1 -22.3

Absolute 0.0 -7.6 -14.1


SK Tiong Enterprise SDN 27.4 Hung Yung Enterprise SDN 15.3 Tiong Su Kouk 8.6


Nam Cheong FLASH NOTE

NCL SP / NMCG.SI Current S$0.31

Market Cap Avg Daily Turnover Free Float Target S$0.32

US$474.8m US$1.04m 48.8% Prev. Target S$0.39 S$639.4m S$1.41m 2,096 m shares Up/Downside 4.1%

Conviction| |


72.0

86.0

100.0

114.0

128.0

142.0

0.270

0.320

0.370

0.420

0.470

0.520

Price Close Relative to FSSTI (RHS)

Source: Bloomberg

1020304050


Vol m

EFAPChartPriceVolRelDaily|

Financial Summary


Revenue (RMm) 1,257 1,929 1,978 1,718 1,606Operating EBITDA (RMm) 219.9 322.9 292.0 256.5 240.9Net Profit (RMm) 205.6 301.8 267.0 235.2 221.2Core EPS (RM) 0.10 0.14 0.13 0.11 0.11Core EPS Growth 43.6% 46.5% (11.1%) (11.9%) (6.0%)FD Core P/E (x) 8.50 5.80 6.53 7.41 7.88DPS (RM) 0.025 0.039 0.040 0.040 0.040Dividend Yield 3.03% 4.67% 4.78% 4.78% 4.78%EV/EBITDA (x) 10.35 6.66 6.84 6.56 6.13P/FCFE (x) 38.06 3.53 NA 4.80 87.24Net Gearing 56.4% 42.8% 27.5% 5.6% (6.2%)P/BV (x) 1.86 1.43 1.24 1.12 1.03ROE 26.9% 27.9% 20.4% 15.9% 13.6%% Change In Core EPS Estimates (7.1%) (17.1%) (22.9%)CIMB/consensus EPS (x) 0.94 0.76 0.82

0.31

0.32

0.30 0.50

Target


Current


Page 7

Asia Pacific DailyEquity Research Reports April 6, 2015

RESEARCH MANAGEMENT

Chris HUNT Regional Head of Research (852) 2539 1315 [email protected] Mark KELLOCK Regional Head of Product Management (852) 2539 1326 [email protected]

REGIONAL SECTOR HEADS

Jason TODD, CFA Arup RAHA KJ KWANG Ivy NG, CFA Trevor KALCIC, CFA Strategy Economics Offshore & Marine Plantations Banks (852) 2532 1123 (65) 6210 8412 (82) 2 6730 6123 (60) 3 2261 9073 (852) 2539 1323 [email protected] [email protected] [email protected] [email protected] [email protected] Varun LOHCHAB Raymond YAP, CFA Consumer Transportation (91) 22 6602 5181 (60) 3 2261 9072 [email protected] [email protected]

COUNTRY HEADS OF RESEARCH

Terence WONG, CFA Bertram LAI Avadhoot SABNIS Erwan TEGUH Dohoon LEE Malaysia Hong Kong/China India Indonesia South Korea (60) 3 2261 9088 (852) 2532 1111 (91) 22 6602 5151 (62) 21 3006 1720 (82) 2 6730 6121 [email protected] [email protected] [email protected] [email protected] [email protected] Edser TRINIDAD Kenneth NG, CFA Eric LIN Kasem PRUNRATANAMALA, CFA Michael KOKALARI, CFA Philippines Singapore Taiwan Thailand Vietnam (63) 2 836 3933 (65) 6210 8610 (886) 2 8729 8380 (66) 2 657 9221 (84) 907 974408 [email protected] [email protected] [email protected] [email protected] [email protected] Coverage via partnership arrangement with SB Equities Yolan SEIMON Sri Lanka (94) 11 2306273 [email protected] Coverage via partnership arrangement with John Keells Stock Brokers

Page 8


DISCLAIMER #05

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Unless otherwise specified, this report is based upon sources which CIMB considers to be reasonable. Such sources will, unless otherwise specified, for market data, be market data and prices available from the main stock exchange or market where the relevant security is listed, or, where appropriate, any other market. Information on the accounts and business of company(ies) will generally be based on published statements of the company(ies), information disseminated by regulatory information services, other publicly available information and information resulting from our research.

Whilst every effort is made to ensure that statements of facts made in this report are accurate, all estimates, projections, forecasts, expressions of opinion and other subjective judgments contained in this report are based on assumptions considered to be reasonable as of the date of the document in which they are contained and must not be construed as a representation that the matters referred to therein will occur. Past performance is not a reliable indicator of future performance. The value of investments may go down as well as up and those investing may, depending on the investments in question, lose more than the initial investment. No report shall constitute an offer or an invitation by or on behalf of CIMB or its affiliates to any person to buy or sell any investments.

CIMB, its affiliates and related companies, their directors, associates, connected parties and/or employees may own or have positions in securities of the company(ies) covered in this research report or any securities related thereto and may from time to time add to or dispose of, or may be materially interested in, any such securities. Further, CIMB, its affiliates and its related companies do and seek to do business with the company(ies) covered in this research report and may from time to time act as market maker or have assumed an underwrit ing commitment in securities of such company(ies), may sell them to or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory, underwriting or placement services for or relating to such company(ies) as well as solicit such investment, advisory or other services from any entity mentioned in this report.

CIMB or its affiliates may enter into an agreement with the company(ies) covered in this report relating to the production of research reports. CIMB may disclose the contents of this report to the company(ies) covered by it and may have amended the contents of this report following such disclosure.

The analyst responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views and opinions about any and all of the issuers or securities analysed in this report and were prepared independently and autonomously. No part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations(s) or view(s) in this report. CIMB prohibits the analyst(s) who prepared this research report from receiving any compensation, incentive or bonus based on specific investment banking transactions or for providing a specific recommendation for, or view of, a particular company. Information barriers and other arrangements may be established where necessary to prevent conflicts of interests arising. However, the analyst(s) may receive compensation that is based on his/their coverage of company(ies) in the performance of his/their duties or the performance of his/their recommendations and the research personnel involved in the preparation of this report may also participate in the solicitation of the businesses as described above. In reviewing this research report, an investor should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest. Additional information is, subject to the duties of confidentiality, available on request.

Reports relating to a specific geographical area are produced by the corresponding CIMB entity as listed in the table below. The term CIMB shall denote, where appropriate, the relevant entity distributing or disseminating the report in the particular jurisdiction referenced below, or, in every other case, CIMB Group Holdings Berhad ("CIMBGH") and its affiliates, subsidiaries and related companies.

Country CIMB Entity Regulated by

Australia CIMB Securities (Australia) Limited Australian Securities & Investments Commission

Hong Kong CIMB Securities Limited Securities and Futures Commission Hong Kong

Indonesia PT CIMB Securities Indonesia Financial Services Authority of Indonesia

India CIMB Securities (India) Private Limited Securities and Exchange Board of India (SEBI)

Malaysia CIMB Investment Bank Berhad Securities Commission Malaysia

Singapore CIMB Research Pte. Ltd. Monetary Authority of Singapore

South Korea CIMB Securities Limited, Korea Branch Financial Services Commission and Financial Supervisory Service

Taiwan CIMB Securities Limited, Taiwan Branch Financial Supervisory Commission

Thailand CIMB Securities (Thailand) Co. Ltd. Securities and Exchange Commission Thailand

Information in this report is a summary derived from CIMB individual research reports. As such, readers are directed to the CIMB individual research report or note to review the individual Research Analyst's full analysis of the subject company. Important disclosures relating to the companies that are the subject of research reports published by CIMB and the proprietary positions by CIMB and shareholdings of its Research Analysts who prepared the report in the securities of the company(s) are available in the individual research report.

The information contained in this research report is prepared from data believed to be correct and reliable at the time of issue of this report. CIMB may or may not issue regular reports on the subject matter of this report at any frequency and may cease to do so or change the periodicity of reports at any time. CIMB is under no obligation to update this report in the event of a material change to the information contained in this report. This report does not purport to contain all the information that a prospective investor may require. CIMB or any of its affiliates does not make any

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guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Neither CIMB nor any of its affiliates nor its related persons shall be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.

This report is general in nature and has been prepared for information purposes only. It is intended for circulation amongst CIMB and its affiliates clients generally and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. The information and opinions in this report are not and should not be construed or considered as an offer, recommendation or solicitation to buy or sell the subject securities, related investments or other financial instruments thereof.

Investors are advised to make their own independent evaluation of the information contained in this research report, consider their own individual investment objectives, financial situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects before participating in any transaction in respect of the securities of company(ies) covered in this research report. The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of investors.

Australia: Despite anything in this report to the contrary, this research is provided in Australia by CIMB Securities (Australia) Limited (CSAL) (ABN 84 002 768 701, AFS Licence number 240 530). CSAL is a Market Participant of ASX Ltd, a Clearing Participant of ASX Clear Pty Ltd, a Settlement Participant of ASX Settlement Pty Ltd, and, a participant of Chi X Australia Pty Ltd. This research is only available in Australia to persons who are wholesale clients (within the meaning of the Corporations Act 2001 (Cth)) and is supplied solely for the use of such wholesale clients and shall not be distributed or passed on to any other person. This research has been prepared without taking into account the objectives, financial situation or needs of the individual recipient.

France: Only qualified investors within the meaning of French law shall have access to this report. This report shall not be considered as an offer to subscribe to, or used in connection with, any offer for subscription or sale or marketing or direct or indirect distribution of financial instruments and it is not intended as a solicitation for the purchase of any financial instrument.

Hong Kong: This report is issued and distributed in Hong Kong by CIMB Securities Limited (CHK) which is licensed in Hong Kong by the Securities and Futures Commission for Type 1 (dealing in securities), Type 4 (advising on securities) and Type 6 (advising on corporate finance) activities. Any investors wishing to purchase or otherwise deal in the securities covered in this report should contact the Head of Sales at CIMB Securities Limited. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CHK has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CHK. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CHK. Unless permitted to do so by the securities laws of Hong Kong, no person may issue or have in its possession for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to the securities covered in this report, which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong).

India: This report is issued and distributed in India by CIMB Securities (India) Private Limited (CIMB India) which is registered with SEBI as a stock-broker under the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 and in accordance with the provisions of Regulation 4 (g) of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, CIMB India is not required to seek registration with SEBI as an Investment Adviser.

The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of CIMB India and they have received compensation based upon various factors, including quality, accuracy and value of research, firm profitability or revenues, client feedback and competitive factors. Research analysts', strategists' or economists' compensation is not linked to investment banking or capital markets transactions performed or proposed to be performed by CIMB India or its affiliates.

Indonesia: This report is issued and distributed by PT CIMB Securities Indonesia (CIMBI). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBI has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CIMBI. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBI. Neither this report nor any copy hereof may be distributed in Indonesia or to any Indonesian citizens wherever they are domiciled or to Indonesia residents except in compliance with applicable Indonesian capital market laws and regulations.

Malaysia: This report is issued and distributed by CIMB Investment Bank Berhad (CIMB). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMB has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CIMB. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB.

New Zealand: In New Zealand, this report is for distribution only to persons whose principal business is the investment of money or who, in the course of, and for the purposes of their business, habitually invest money pursuant to Section 3(2)(a)(ii) of the Securities Act 1978.

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Singapore: This report is issued and distributed by CIMB Research Pte Ltd (CIMBR). Recipients of this report are to contact CIMBR in Singapore in respect of any matters arising from, or in connection with, this report. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBR has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only. If the recipient of this research report is not an accredited investor, expert investor or institutional investor, CIMBR accepts legal responsibility for the contents of the report without any disclaimer limiting or otherwise curtailing such legal responsibility. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBR..

As of April 5, 2015, CIMBR does not have a proprietary position in the recommended securities in this report.

South Korea: This report is issued and distributed in South Korea by CIMB Securities Limited, Korea Branch ("CIMB Korea") which is licensed as a cash equity broker, and regulated by the Financial Services Commission and Financial Supervisory Service of Korea.

The views and opinions in this research report are our own as of the date hereof and are subject to change, and this report shall not be considered as an offer to subscribe to, or used in connection with, any offer for subscription or sale or marketing or direct or indirect distribution of financial investment instruments and it is not intended as a solicitation for the purchase of any financial investment instrument.

This publication is strictly confidential and is for private circulation only, and no part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB Korea.

Sweden: This report contains only marketing information and has not been approved by the Swedish Financial Supervisory Authority. The distribution of this report is not an offer to sell to any person in Sweden or a solicitation to any person in Sweden to buy any instruments described herein and may not be forwarded to the public in Sweden.

Taiwan: This research report is not an offer or marketing of foreign securities in Taiwan. The securities as referred to in this research report have not been and will not be registered with the Financial Supervisory Commission of the Republic of China pursuant to relevant securities laws and regulations and may not be offered or sold within the Republic of China through a public offering or in circumstances which constitutes an offer or a placement within the meaning of the Securities and Exchange Law of the Republic of China that requires a registration or approval of the Financial Supervisory Commission of the Republic of China.

Thailand: This report is issued and distributed by CIMB Securities (Thailand) Company Limited (CIMBS). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBS has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CIMBS. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBS.

CIMB Securities (Thailand) Co., Ltd. may act or acts as Market Maker and issuer including offering of Derivative Warrants Underlying securities of the following securities. Investors should carefully read and study the details of the derivative warrants in the prospectus before making investment decisions.

AAV, ADVANC, AIT, AMATA, ANAN, AOT, AP, ASP, BANPU, BAY, BBL, BCH, BCP, BEC, BECL, BGH, BH, BIGC, BJC, BJCHI, BLAND, BMCL, BTS, CENTEL, CK, CPALL, CPF, CPN, DELTA, DEMCO, DTAC, EARTH, EGCO, ERW, GFPT, GLOBAL, GLOW, GUNKUL, HANA, HEMRAJ, HMPRO, ICHI, IFEC, INTUCH, IRPC, ITD, IVL, JAS, KBANK, KCE, KKP, KTB, KTC, KTIS, LH, LOXLEY, LPN, M, MAJOR, MC, MEGA, MINT, NOK, PS, PSL, PTG, PTT, PTTEP, PTTGC, QH, RATCH, RML, ROBINS, SAMART, SAWAD, SCB, SCC, SCCC, SF, SGP, SIM, SIRI, SPALI, SPCG, SRICHA, STA, STEC, STPI, SVI, TCAP, THAI, THCOM, THREL, TICON, TISCO, TMB, TOP, TPIPL, TTA, TTCL, TTW, TUF, UV, VGI, TRUE.

Corporate Governance Report:

The disclosure of the survey result of the Thai Institute of Directors Association (IOD) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information.

The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CIMBS does not confirm nor certify the accuracy of such survey result.

Score Range: 90 - 100 80 - 89 70 - 79 Below 70 or No Survey Result

Description: Excellent Very Good Good N/A

United Arab Emirates: The distributor of this report has not been approved or licensed by the UAE Central Bank or any other relevant licensing authorities or governmental agencies in the United Arab Emirates. This report is strictly private and confidential and has not been reviewed by, deposited or registered with UAE Central Bank or any other licensing authority or governmental agencies in the United Arab Emirates. This report is being issued outside the United Arab Emirates to a limited number of institutional investors and must not be provided to any person other than the original recipient and may not be reproduced or used for any other purpose. Further, the information contained in this report is not intended to lead to the sale of investments under any subscription agreement or the conclusion of any other contract of whatsoever nature within the territory

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of the United Arab Emirates.

United Kingdom and Europe: In the United Kingdom and European Economic Area, this report is being disseminated by CIMB Securities (UK) Limited (CIMB UK). CIMB UK is authorised and regulated by the Financial Conduct Authority and its registered office is at 27 Knightsbridge, London, SW1X 7YB. This report is for distribution only to, and is solely directed at, selected persons on the basis that those persons: (a) are persons that are eligible counterparties and professional clients of CIMB UK; (b) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the Order); (c) are persons falling within Article 49 (2) (a) to (d) (high net worth companies, unincorporated associations etc) of the Order; (d) are outside the United Kingdom; or (e) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with any investments to which this report relates may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as relevant persons). This report is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this report relates is available only to relevant persons and will be engaged in only with relevant persons.

Only where this report is labelled as non-independent, it does not provide an impartial or objective assessment of the subject matter and does not constitute independent "investment research" under the applicable rules of the Financial Conduct Authority in the UK. Consequently, any such non-independent report will not have been prepared in accordance with legal requirements designed to promote the independence of investment research and will not subject to any prohibition on dealing ahead of the dissemination of investment research.

United States: This research report is distributed in the United States of America by CIMB Securities (USA) Inc, a U.S.-registered broker-dealer and a related company of CIMB Research Pte Ltd, CIMB Investment Bank Berhad, PT CIMB Securities Indonesia, CIMB Securities (Thailand) Co. Ltd, CIMB Securities Limited, CIMB Securities (Australia) Limited, CIMB Securities (India) Private Limited, and is distributed solely to persons who qualify as "U.S. Institutional Investors" as defined in Rule 15a-6 under the Securities and Exchange Act of 1934. This communication is only for Institutional Investors whose ordinary business activities involve investing in shares, bonds and associated securities and/or derivative securities and who have professional experience in such investments. Any person who is not a U.S. Institutional Investor or Major Institutional Investor must not rely on this communication. The delivery of this research report to any person in the United States of America is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein. CIMB Securities (USA) Inc, is a FINRA/SIPC member and takes responsibility for the content of this report. For further information or to place an order in any of the above-mentioned securities please contact a registered representative of CIMB Securities (USA) Inc.

Other jurisdictions: In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is only for distribution to professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (Thai IOD) in 2014.

AAV Very Good, ADVANC Very Good, AEONTS not available, AMATA - Good, ANAN Very Good, AOT Very Good, AP - Good, ASK Very Good, ASP Very Good, BANPU Very Good , BAY Very Good , BBL Very Good, BCH not available, BCP - Excellent, BEAUTY Good, BEC - Good, BECL Very Good, BGH - not available, BH - Good, BIGC - Very Good, BJC Good, BLA Very Good, BMCL - Very Good, BTS - Excellent, CCET Good, CENTEL Very Good, CHG not available, CK Very Good, CPALL not available, CPF Very Good, CPN - Excellent, DELTA - Very Good, DEMCO Good, DTAC Very Good, EA - Good, ECL not available, EGCO - Excellent, GFPT - Very Good, GLOBAL - Good, GLOW - Good, GRAMMY - Excellent, HANA - Excellent, HEMRAJ Very Good, HMPRO - Very Good, ICHI - not available, INTUCH - Excellent, ITD Good, IVL - Excellent, JAS not available, JUBILE not available, KAMART not available, KBANK - Excellent, KCE - Very Good, KGI Good, KKP Excellent, KTB - Excellent, KTC Good, LH - Very Good, LPN Very Good, M - not available, MAJOR - Good, MAKRO Good, MBKET Good, MC Very Good, MCOT Very Good, MEGA Good, MINT - Excellent, OFM Very Good, OISHI Good, PS Very Good, PSL - Excellent, PTT - Excellent, PTTEP - Excellent, PTTGC - Excellent, QH Very Good, RATCH Very Good, ROBINS Very Good, RS Very Good, SAMART - Excellent, SAPPE - not available, SAT Excellent, SAWAD not available, SC Excellent, SCB - Excellent, SCBLIF Good, SCC Very Good, SCCC - Good, SIM - Excellent, SIRI - Good, SPALI - Excellent, STA Very Good, STEC - Good, SVI Very Good, TASCO Good, TCAP Very Good, THAI Very Good, THANI Very Good, THCOM Very Good, THRE not available, THREL Good, TICON Good, TISCO - Excellent, TK Very Good, TMB - Excellent, TOP - Excellent, TRUE Very Good, TTW Very Good, TUF - Good, VGI Very Good, WORK not available.

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CIMB Recommendation Framework

Stock Ratings Definition:

Add The stocks total return is expected to exceed 10% over the next 12 months.

Hold The stocks total return is expected to be between 0% and positive 10% over the next 12 months.

Reduce The stocks total return is expected to fall below 0% or more over the next 12 months.

The total expected return of a stock is defined as the sum of the: (i) percentage difference between the target price and the current price and (ii) the forward net dividend yields of the stock. Stock price targets have an investment horizon of 12 months.

Sector Ratings Definition:

Overweight An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation.

Neutral A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation.

Underweight An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation.

Country Ratings Definition:

Overweight An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark.

Neutral A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark.

Underweight An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark.

*Prior to December 2013 CIMB recommendation framework for stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand, Jakarta Stock Exchange, Australian Securities Exchange, Taiwan Stock Exchange and National Stock Exchange of India/Bombay Stock Exchange were based on a stocks total return relative to the relevant benchmarks total return. Outperform: expected to exceed by 5% or more over the next 12 months. Neutral: expected to be within +/-5% over the next 12 months. Underperform: expected to be below by 5% or more over the next 12 months. Trading Buy: expected to exceed by 3% or more over the next 3 months. Trading Sell: expected to be below by 3% or more over the next 3 months. For stocks listed on Korea Exchange, Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Outperform: Expected positive total returns of 10% or more over the next 12 months. Neutral: Expected total returns of between -10% and +10% over the next 12 months. Underperform: Expected negative total returns of 10% or more over the next 12 months. Trading Buy: Expected positive total returns of 10% or more over the next 3 months. Trading Sell: Expected negative total returns of 10% or more over the next 3 months.

Page 13

HKG- China Mengniu Dairy.pdfStar and opportunity brands to drive sales growthYoghurt a long-term growth driver

MAL- Hartalega Holdings.pdfFirst two plants of NGC targeted for completion by 1QCY16De-commissioning old plantsPlanning to build plants to manufacture specialty glovesOBM expanding in Australia, China and IndiaIntensifying competitionProposing a new ESOS programmeDowngrade to Hold

MAL- RHB Capital Bhd.pdfWhat we gathered from The Edge articlePotential internal reorganisation

MAL- yBanks.pdfWhat we gathered from the new guidelines:The formula for LCRThe requirementsWhat is included in the stock of HQLA?Calculation of expected cash outflowImpact on banksKeen deposit competition through special promotions

SIN- Nam Cheong.pdfCharts

APAC Daily Draft-060415.pdfKey MetricsADR Results | as at 6 April 2015CIMB Daily Revisions | as at 6 April 2015

APAC Daily Draft-060415.pdfKey MetricsADR Results | as at 6 April 2015CIMB Daily Revisions | as at 6 April 2015

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