SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

27 August 2013

Regional

Co. Reg No: 198700034E MICA (P) : 099/03/2012

Daily

Top Views FLASH NOTE Mcap USD271.8m ADTV USD2.4m SP: China Minzhong (MINZ SP) WEI BIN P4 Agriculture | Short Seller’s Market For Now | UNDER REVIEW - We are putting our recommendation under review pending further

clarification from the company, but we will continue coverage and update on any developments. We looked at Glaucus’ allegations and where possible, we have tried to explain them. At this stage however, only Minzhong can refute Glaucus’ allegations fully. A shortseller’s report will obviously present only damning evidence as their report is designed to cause panic. A strong defence is needed from the company to clear things up and the support of its major shareholder Indofood could help shore up the stock.

- Minzhong has said it will defend its legal rights vigorously. Clearly the stock is halted at this point and nothing can be done. However, if the company’s defence can reverse negative sentiment, we note that the stock is currently trading way below its NTA per share of SGD1, even after assuming a 100% haircut to trade and other receivables (without the haircut, NTA per share is SGD1.40).

TP UPGRADE Mcap USD3.5b ADTV USD12m HK: Melco Int’l Development (200 HK) Jeremy TAN P5 Gaming | A New Partner In Russia | BUY | Upside 18% - Firich (8076 TT, Not Rated), has announced that it will spend USD18.9m to

acquire a stake together with Melco Int’l Development (MID) and Summit Ascent Holdings Ltd. (102 HK, Not Rated), for a 19%, 5% and 46% stake respectively, to pioneer the development of two casino hotels in Vladivostok, in the Primorye region bordering China.

- We keep our BUY rating on MID as we roll forward our earnings for Melco Crown to FY14, with a new Street-high TP of HKD20.60 from HKD18.60. In addition to its Russian venture, MID’s international portfolio of casino investments will soon expand further with Belle Grande casino in the Philippines, on track to open in mid-2014 and Macau Studio City in mid-2015.

- After the deal, Oriental Regent controlled by Elegant City, will have a reduce stake of 30% and is estimated to be close to twice the initial investment quantum of FGCE. Firich will bring to the table its expertise in video lottery terminals and point of sales terminals. It will also focus on attracting customers from Taiwan and Korea. We see the new partner as a synergistic addition to the venture

COMPANY UPDATE Mcap USD13.8b ADTV USD12m CN: Tingyi (322 HK) Jacqueline KO P6 Consumer | Positive Signs Emerging; Stay at BUY | Upside 28% - Reiterate BUY as Tingyi gains market share over competitors in the beverage

and instant noodle segments. We keep our projections and TP of HKD24.38, on 28X FY14F PER, intact.

- July-August beverage sales were robust thanks to hot weather and A&P efforts in 2Q13. Meanwhile, Pepsi is turning a profit in 2Q13 following two consecutive quarters of market share increases and double-digit YoY volume growth in 2Q, against Coke’s flat growth.

- Key catalysts: i) Pepsi is on track to break even in FY13F; ii) new product launches in new business categories such as meat processing by end FY13F; iii) normalising industry competition; iv) good feedback on the new and almost-new products; v) stable raw material input costs. Key risk: persistently weak demand.

WONG Chew Hann, CA wchewh@maybank-ib.com (603) 2297 8686 ONG Seng Yeow ongsengyeow@maybank-ke.com.sg (65) 6432 1832

Fresh Money Buys

Company Ticker Upside (%)

Fwd P/E (x)

Fwd Yield (%)

Semen Indonesia SMGR IJ 81.9 12.3 2.7 Krung Thai Bank KTB TB 71.4 6.8 4.5 Beijing Tong Ren Tang 8138 HK 45.8 25.5 0.0 Metrobank MBT PM 44.9 13.3 1.0 Keppel Land KPLD SP 39.9 11.7 3.5 MediaTek 2454 TT 36.1 15.8 0.1 Bolina 1190 HK 35.1 7.9 2.6 Express Transindo TAXI IJ 32.8 16.7 0.7 Super Group SUPER SP 32.0 23.1 1.5 Gamuda GAM MK 21.3 13.7 2.8

Source: Maybank KE, Factset, as at last closing price

Maybank Kim Eng Events Date Corporate Roadshows Location 30 Aug Goodbaby NDR SP 3 Sep Muhibbah Engineering NDR SP 19 Sep Ezion NDR KL

Analyst Roadshows Date Corporate Roadshows Analyst Location 2-6 Sep Aviation Services Marketing Derrick Heng US

What’s Inside

China Minzhong (MINZ SP) ........................................... P4 Melco Int’l Development (200 HK).................................. P5 Tingyi (322 HK) .............................................................. P6 CIMB Group Holdings (CIMB MK).................................. P7 Cordlife (CLGL SP) ........................................................ P8 FJ Benjamin (FJB SP) ................................................... P9 Singapore Industrial Production, July 2013 .................. P10

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

27 August 2013

Regional Daily

Company Notes RESULTS REVIEW Mcap USD17.3b ADTV USD36.8m MK: CIMB Group Holdings (CIMB MK) Desmond CH’NG P7 Banking | Little To Excited In 2Q13 | HOLD | Upside 8% - Although we had earlier cut our 2013 net profit forecast by 5%, we are

trimming it by a further 3% to factor in lower-than-expected non-interest income in 2Q13 amid weak capital markets.

- CIMB’s 2Q13 results were below our expectations and consensus, with 1H13 core net profit of MYR2.1b (-1% YoY) making up just 47% of our full-year forecast and 45% of Street’s estimates.

- Valuations are decent but corporate and capital market activity is expected to remain subdued over the next few months, while the operating environment in Indonesia remains tough – CIMB Niaga contributes to 31% of group profits.

- Our TP is trimmed to MYR8.10 (-2%; 1.8x FY14 P/BV, ROE: 14.7%).

SMID Caps TP UPGRADE Mcap USD232.8m ADTV USD6.0m SP: Cordlife (CLGL SP) John CHEONG P8 Healthcare | Growth Story Backed By Resilient Earnings | BUY | Upside 15% - Reiterate BUY with a new Street-high TP of SGD1.47, implying a 25x

FY14F. Cordlife announced its 4QFY6/13 results yesterday. Recurring net profit is largely in-line with our expectation.

- Cordlife’s statement of its transition plan serves as a strong hint that it is ready to launch new product in its pipeline.

- We continue to like the company as it delivers attractive results and embark upon its multi-product expansion across Asia, None of its global cord blood peers have comparable wide market exposure and strong margin such as Cordlife.

TP UPGRADE Mcap USD113.4m ADTV USD0.1m SP: FJ Benjamin (FJB SP) Alison FOK P9 Retail | Softening Consumer Sentiment | SELL | Downside 19% - Maintain our SELL call, in light of poor consumer sentiment in particular

countries to continue to hamper on FJB’s earnings over the next year. - FJ Benjamin reported its full-year FY6/13 sales with a decline of 5% YoY

to SGD373.4m and net profit of SGD4.4m (-68% YoY), due to a drag on sales in North Asia, particularly in the Watches segment, as well as softening consumer sentiment in Singapore. FJ Benjamin has declared a 0.5cts final dividend, implying a dividend payout of 64%.

- We are concerned on FJB’s weakening balance sheet as it targets to open 14 stores across the region this year.

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

27 August 2013

Regional Daily

Economics Singapore Industrial Production, July 2013 Suhaimi ILIAS P10 Better Than Expected Rebound - Industrial Production (IP) rebounded by +2.7% YoY in July 2013 (revised

June 2013: -4.2% YoY; Consensus: +1.8% YoY) on the back of stronger growth in Transport Engineering, Electronics and General Manufacturing clusters amid declines in Precision Engineering and Biomedicals. From the previous month, IP fell by -3.3% MoM (June 2013: +3.7 % MoM) while the seasonally adjusted growth fell by a smaller quantum of -1.9% MoM (s.a June 2013: -1.9% MoM). IP in Jan-July 2013 dropped by -1.6% YoY compared to the +1.6% YoY recorded over the corresponding period last year.

- Global manufacturing activities tilting towards the positive. The global manufacturing PMI for July 2013 picked up slightly to 50.8 from 50.6 in June, as the preliminary manufacturing PMI for the Eurozone advanced further to 51.3 (July 2013: 50.3) while the HSBC/Markit flash manufacturing PMI for China rose to 50.1 compared to its 11-month low of 47.7 in July 2013.

- The improvement in Singapore’s major trade partners and the promising sign of further improvement global economy in Aug 2013 augurs well for the island’s export-oriented manufacturers.

Additional Research MK: Kossan Rubber Industries (KRI MK) P11 The Party Continues | BUY (LEE Yen Ling)

MK: Sunway (SWB MK) P12 Expect Stronger Property Sales In 2H13 | BUY (WONG Wei Sum)

MK: Ta Ann Holdings (TAH MK) P13 Expect A Weak 2Q13 Core Profit | BUY (CHAI Li Shin, ONG Chee Ting)

MK: JT International (RJR MK) P14 Post-Briefing Update | BUY (CHAI Li Shin)

MK: Nestle (Malaysia) (NESZ MK) P15 Stable Growth In Domestic Sales | HOLD (KANG Chun Ee)

MK: Malaysia Oil & Gas P16 PETRONAS’ 1H 2013 Report Card | OVERWEIGHT (LIAW Thong Jung)

TB: Tipco Asphalt PCL (TASCO TB) P17 Sales Target Cut; Better 2H13 In Store | BUY (Surachai PRAMUALCHAROENKIT)

TB: Siam Cement (SCC TB) P18 Establishing a firm footing in Myanmar | BUY (Maria LAPIZ, Surachai PRAMUALCHAROENKIT )

TB: Workpoint Entertainment (WORK TB) P19 Downgrade Earnings But 2H13 To Be Better | BUY (Suttatip PEERASUB)

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Flash Note 27 August 2013

Singapore Co. Reg No: 198700034E

MICA (P) : 099/03/2012

China Minzhong Short-Seller’s Market For Now

Rating under review; What's next? We are putting our recommendation under review pending further clarification from the company, but we will continue coverage and update on any developments. We looked at Glaucus’ allegations and where possible, we have tried to explain them. At this stage however, only Minzhong can refute Glaucus’ allegations fully. A shortseller’s report will obviously present only damning evidence as their report is designed to cause panic. A strong defence is needed from the company to clear things up and the support of its major shareholder Indofood could help shore up the stock. Minzhong has said it will defend its legal rights vigorously. Clearly the stock is halted and nothing can be done. However, if the company’s defence can reverse negative sentiment, we note that the stock is currently trading way below its NTA per share of SGD1, even after assuming a 100% haircut to trade and other receivables (without the haircut, NTA per share is SGD1.40).

Old concerns being rehashed by Glaucus

Higher-than-peers’ margins: Glaucus argued that Minzhong’s reported EBITDA margins on fresh produce averaged 66% during the past five years, which they considered to be abnormally high.

Our comments: Glaucus’ assertion of a 66% margin is higher than reality as the operating profit margin in the fresh vegetables division has been trending down in the past 5 years and now is only 49%. If we look at the group operating profit margin, in the past five years it has been quite stable ranging from 30-34%. Given the business model of China Minzhong, high margins in the fresh vegetables division are actually offset by the low margin in the processing division. In FY07/08 when the fresh vegetable sector enjoyed extremely high operating profit margin (80/70% respectively), the OP margin for processing sector was also extremely low at only 9/17%.

Ballooning receivables: Glaucus observed that Minzhong’s receivables have skyrocketed in the last two years. They believe that the persistent and unexplained growth in receivables is caused by the need to account for doubtful income on the balance sheet.

Our comments: We have also noticed that the receivables went up quite significantly in FY12. However, we believe that was mainly due to slower payments by overseas customers due to the global financial crisis.

Under Review Share price: SGD0.53 Target price: na WEI Bin weibin@maybank-ke.com.sg (65) 6432 1455 Stock Information Description: A leading integrated vegetable processor in China, whose key products are fresh vegetable produce and more than 100 types of processed vegetables. Ticker: MINZ SP Shares Issued (m): 655.4 Market Cap (USD m): 271.5 3-mth Avg Daily Turnover (USD m): 2.4 ST Index: 3,084.41 Free float (%): 60.8 Major Shareholders: % Indofood 29.3% Templeton 14.8% Key Indicators

ROE – annualised (%) 18.1 Net gearing (%): 2.8 NTA/shr (CNY): 5.27 Interest cover (x): 28.6

Historical Chart

Performance: 52-week High/Low SGD1.27/SGD0.50 1-mth 3-mth 6-mth 1-yr YTD Absolute (%) -51.6 -47.5 -55.8 -29.3 -33.8 Relative (%) -49.2 -42.3 -53.4 -30.1 -32.0

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foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Hong KongCompany Update 26 August 2013

Melco Int’l Development A New Partner In Russia Firich a synergistic partner. Firich (8076 TT, Not Rated), a company listed in Taiwan, has announced that it will spend USD18.9m to acquire a stake in Oriental Regent (who owns 50% stake in FGCE; a company that holds the gaming license in the integrated entertainment zone of the Primorye Region). Oriental Regent will utilize funds from Firich worth USD13.4m to acquire the remaining 50% of FGCE while USD5.6m will be capitalized as equity after completion. After the completion of reorganisation, Oriental Regent controlled by Elegant City, will hold 30%, while Firich will hold 19%. The deal is estimated to be close to twice the initial investment quantum of FGCE. Firich will bring to the table its expertise in video lottery terminals and point of sales terminals. It will also focus on attracting customers from Taiwan and Korea. We see the new partner as a synergistic addition to the venture.

Reiterate BUY and Street-high TP of HKD20.60. We keep our BUY rating on MID as we roll forward our earnings for Melco Crown to FY14, with a new Street-high TP of HKD20.60 from HKD18.60. In addition to its Russian venture, MID’s international portfolio of casino investments will soon expand further with Belle Grande casino in the Philippines, on track to open in mid-2014 (in partnership with Belle), and Macau Studio City in mid-2015. Our TP implies 18% upside.

Russia – a new frontier. Casino operators have been eager to explore new markets following the success of the global casino business. The most recent excitement came from the acquisition in the casino venture by Melco Int’l Development (MID) and Summit Ascent Holdings Ltd. (102 HK, Not Rated), of a 5% and 46% stake respectively, in the venture to pioneer the development of two casino hotels in Vladivostok, in the Primorye region bordering China. The Russian government is also encouraging investments here with attractive gaming tax rates. Riding on Melco’s management. The first phase of the casino resort is anticipated to cost USD130m, and will comprise 25 VIP and 40 mass tables, 800 slot machines and 119 hotel rooms. As a first mover, we think the casino should achieve breakeven within two years. The casino will pay Summit Ascent a fee of 3% of its gross gaming revenue, and pay MID a consultancy fee of 0.3% of gross gaming revenue. Melco Int’l Development – Summary Earnings Table FYE Dec (HKDm) 2011A 2012A 2013F 2014FRevenue 129.3 146.9 154.2 161.9 EBITDA (68.7) (86.9) (85.9) (98.1)Recurring Net Profit 281.2 1,583.5 1,481.3 1,880.1 Recurring Basic EPS (HKD) 0.2 0.9 1.1 1.4 EPS Growth (%) 159.1 73.1 24.3 21.2 DPS (cents) 0.0 1.5 0.0 0.0 PER (x) 25.2 10.6 11.8 9.3 EV/EBITDA (x) n/m n/m n/m n/mDiv Yield (%) 0.0 0.3 0.0 0.0 P/BV (x) 1.0 1.3 1.6 1.4 Net Gearing (%) 7.7 Net Cash Net Cash Net CashROE (%) 3.9 12.0 13.7 14.8 ROA (%) 3.3 11.3 12.1 13.3 Consensus Net Profit (HKDm) 1,341.4 1,885.0 Source: Company data, Maybank Kim Eng

Buy (unchanged) Share price: HKD17.44 Target price: HKD20.60 (from 18.60) Jeremy TAN jeremytan@kimeng.com.hk (852) 2268 0635

Stock Information Description: Melco International Development is an investment holding company focused on providing entertainment and property development services. The company operates in the following segments: leisure and entertainment as well as property and other investments. Ticker: 200 HK Shares Issued (m): 1,535 Market Cap (USDm): 3,451 3-mth Avg Daily Turnover (USDm): 12 HSI: 22,005 Free Float (%): 51 Major Shareholders: % Great Respect 19.48 Better Joy Overseas 18.80 Lasting Legend 7.53 Historical Chart

Performance: 52-week High/Low HKD18.18/HKD5.91 1-mth 3-mth 6-mth 1-yr YTD Absolute (%) 16.3 2.0 46.6 176.8 93.6 Relative (%) 16.1 4.7 48.8 166.1 96.4

0.05.0

10.015.020.025.030.035.040.045.050.0

Aug 12 Oct 12 Dec 12 Feb 13 Apr 13 Jun 13 Aug 13PRICE PRICE REL. TO HANG SENG INDEX

Source: Bloomberg

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Hong KongCompany Update 27 August 2013

Tingyi Positive Signs Emerging; Stay at BUY Some positive signs. We reiterate our BUY rating on Tingyi as it gains market share over competitors in the beverage and instant noodle segments. July-August beverage sales were robust thanks to hot weather and A&P efforts in 2Q13. Meanwhile, Pepsi is turning a profit in 2Q13 following two consecutive quarters of market share increases and double-digit YoY volume growth in 2Q, against Coke’s flat growth. We keep our projections and TP of HKD24.38, on 28X FY14F PER, intact.

Normalising competition around the corner. We reaffirm our stance that Tingyi will scale back its promotional spending by end FY13F as its market share in the pickled and beef noodles segments will surpass that of UPC shortly, while it is catching up nicely in the milk tea market. Management indicated that retail channel inventory in the majority of its markets was below normal, though inventory level in some markets was excessive. We believe this bodes well for the group‘s near-term sales growth prospects. We also believe that Tingyi’s more active new flavour launches in recent months will stimulate sluggish industry demand.

Interim results. 1H13 core NPAT rose 3% YoY to USD197m on the back of 20% top-line growth. Key positives are its disciplined SG&A costs despite irrational competition among peers, in our view, confirming that product diversity and scale advantage are the two factors determining market share. EBIT margins at the noodles segment came in at 9.7% in 1H13 vs 10.6% last year even with free sausages and larger vegetable packs. EBIT margins at the beverage division fell 1.1ppts YoY, as marketing expenses were front-loaded ahead of the peak season while 2Q sales was weak on poor weather. The key negative was that the instant food business went into the red, though the drag on overall earnings was insignificant.

Key catalysts and risks. Key catalysts: i) Pepsi is on track to break even in FY13F; ii) new product launches in new business categories such as meat processing by end FY13F; iii) normalising industry competition; iv) good feedback on the new and almost-new products; v) stable raw material input costs. Key risk: persistently weak demand.

Tingyi –Summary Earnings Table

FYE Dec (USDm) 2012A 2013F 2014F 2015FRevenue 9,212 10,851 12,877 14,692EBITDA 1,099 1,140 1,396 1,635Core Net Profit 360 413 592 748Core Basic EPS (US cents) 6.44 7.36 10.48 13.18Recurring EPS growth (%) (5.31) 14.78 43.22 26.33 DPS (UScents) 3.22 3.68 5.24 6.59Adjusted PER 38.06 33.32 23.38 18.60EV/EBITDA (x) 13.93 13.39 10.72 8.89Div Yield (%) 1.31 1.50 2.14 1.09P/BV(x) 5.37 5.00 4.53 4.06Net Gearing (%) 25.65 14.09 N/A N/AAdjusted ROE (%) 15.49 15.57 20.38 23.08Adjusted ROA (%) 5.42 5.32 6.96 7.92Consensus Net Profit (USDm) - 407 492 607Source: Company data, Maybank Kim Eng

Buy (unchanged ) Share price: HKD19.12 Target price: HKD24.38 (unchanged) Jacqueline KO, CFA jacquelineko@kimeng.com.hk (852) 2268 0633

Stock Information Description: Tingyi manufactures and sells instant noodles, ready-to-drink tea, juices and bakery products in China. Ticker: 322 HK Shares Issued (m): 5,594.3 Market Cap (USDm): 13,713.1 3-mth Avg Daily Turnover (USDm): 12.4 HSI: 22,005 Free Float (%): 66.39 Major Shareholders: % Wei Ing-Chou 33.61 Key Indicators

ROE – annualised (%) 15.6 Net cash (HKDm): 3,030.3 NTA/shr (HKD): 3.83 Interest cover (x): 28.8 Historical Chart

Performance: 52-week High/Low HKD25.0/HKD18.2 1-mth 3-mth 6-mth 1-yr YTD Absolute (%) (0.8) (4.1) (7.6) (14.6) (11.3) Relative (%) (1.0) (1.4) (5.3) (25.3) (8.4)

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Results Review 27 August 2013

PP16832/01/2013 (031128)

Malaysia

CIMB Group Holdings Little To Excite In 2Q13

Maintain HOLD. Although we had earlier cut our 2013 net profit forecast by 5%, we are trimming it by a further 3% to factor in lower-than-expected non-interest income in 2Q13 amid weak capital markets. CIMB’s 2Q13 results were below our expectations and consensus, with 1H13 core net profit of MYR2.1b (-1% YoY) making up just 47% of our full-year forecast and 45% of street estimates. Valuations are decent but corporate and capital market activity is expected to remain subdued over the next few months, while the operating environment in Indonesia remains tough – CIMB Niaga contributes to 31% of group profits. Our TP is trimmed to MYR8.10 (-2%; 1.8x FY14 P/BV, ROE: 14.7%).

2Q13 core net profit declined 5% YoY and was flat QoQ. Loan growth picked up slight momentum and rose 3.7% QoQ in 2Q13 vs 3.0% QoQ in 1Q13. Management maintains its credit growth guidance of 15% (+13% end-June 2013) in anticipation of corporate lending picking up regionally in 2H13. Overall NIMs were down 21 bps in 1H13 vs 1H12 and we are looking at a contraction of 18 bps for the full year. Reported 2Q13 net profit declined 24% QoQ due to a gain of MYR515m in 1Q13 from the sale of CIMB Aviva, which is not included in our forecasts below.

Costs higher. The group’s mandatory separation scheme (MSS) cost of MYR150m was higher than the MYR80m budgeted. No additional provisions, however, were made in 2Q13, for the group had already provided MYR200m in 1Q13 (MYR120m budgeted for the amortization of intangibles will be scaled back to MYR50m). With management looking to possibly retrench more than 1,000 persons against an initial headcount of 867, we would not rule out further costs in 2H13. RBS’ costs was about MYR122m in 2Q13, similar to 1Q13.

Positively, liquidity remains more than ample with a group LDR of 86% and 60+% for USD LDR. Also positive is that credit costs continue to be benign and were just 13 bps in 2Q13, taking the credit cost in 1H13 to 14 bps against management’s initial guidance of 40 bps for 2013.

No acquisitions in Thailand on the cards. Management has moved on and is building out its own consumer model over there.

CIMB Group – Summary Earnings Table Source: Maybank KE

FYE Dec (MYR m) 2011A 2012A 2013F 2014F 2015FOperating income 12,122.0 13,494.8 14,114.2 15,507.6 16,767.7 Pre-provision profit 5,492.1 5,882.7 5,852.3 6,673.4 7,285.2 Recurring net profit 4,030.8 4,344.8 4,368.5 4,803.9 5,251.2 Recurring basic EPS (sen) 54.2 58.5 58.8 64.6 70.6 EPS growth (%) 11% 8% 1% 10% 9%Net DPS (sen) 22.0 23.4 23.5 25.9 28.3 PER (x) 13.8 12.8 12.7 11.6 10.6 Net div yield (%) 2.9 3.1 3.1 3.5 3.8 P/BV (x) 2.1 2.0 1.8 1.6 1.5 Book value (MYR) 3.51 3.82 4.21 4.60 5.02 ROE (%) 16.4 16.0 14.6 14.7 14.7 ROA (%) 1.4 1.4 1.2 1.2 1.2 Consensus Net Profit (MYR m) n.a. n.a. 4,626.7 5,197.7 5,840.5 Earnings Revision (%) n.a. n.a. (3.1) (2.3) (2.5)

Hold (unchanged) Share price: MYR7.48 Target price: MYR8.10 (from MYR8.30) Desmond Ch’ng desmond.chng@maybank-ib.com (603) 2297 8680 Stock Information Description: Banking. Ticker: CIMB MK Shares Issued (m): 7,615.8 Market Cap (MYR m): 56,966.5 3-mth Avg Daily Turnover (USD m): 36.76 KLCI: 1,722.49 Free float (%): 55.3 Major Shareholders: % KHAZANAH NASIONAL BH 30.0 EMPLOYEES PROVIDENT 13.9 MITSUB UFJ FINANCIAL 10.1

Historical Chart

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Performance: 52-week High/Low MYR8.7/MYR6.9 1-mth 3-mth 6-mth 1-yr YTD Absolute (%) (11.5) (12.1) 5.8 (5.1) (2.0) Relative (%) (6.8) (9.3) (0.0) (9.6) (4.0)

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Results Review 27 August 2013

Singapore

Co. Reg No: 198700034E MICA (P): 099/03/2012

Cordlife Group Limited Growth Story Backed by Resilient Earnings

Results in line. Cordlife announced its 4QFY6/13 results yesterday. Recurring net profit is 6% above our expectation on the back of strong revenue and higher profit from its newly acquired China’s associate. We raise our TP to SGD1.47 and maintain our BUY rating with 15% upside.

Resilient earnings maintained despite headwind in Hong Kong. Earlier, a complete ban of mainland women from giving birth in Hong Kong has raised concern on Cordlife’s earnings, this result show that Singapore market itself is strong enough to outpace a minute slowdown in Hong Kong. With only one product, Singapore market registered a revenue growth of 24%, making up for a slowdown of 17% in Hong Kong market, bringing the total revenue growth to a record strong 15%.

Umbilical cord tissue storage in full swing. Moving ahead, we expect Singapore market to be more attractive as contributions from umbilical cord tissue storage will be in full swing subsequent to its nationwide launch recently. We view this service as entirely compatible with its current best-selling service, where Cordlife can effortlessly push the product through its existing marketing channel which consists of its experienced sales team and established relationship with doctors. Moreover, as the sole provider of this service in Singapore provide an edge to Cordlife on many fronts.

Aggressive headcount increased serves as a strong growth signal. According to its results note, Cordlife has incurred SGD1.2 million to increase headcount to maintain its service quality. In our view, it serves as a signal that company is confident on sustaining a strong growth rate moving forward as it seeks to market its umbilical cord tissue and launch more new product in its pipeline.

Transforming to a multi-product healthcare player. Cordlife’s statement of its transition plan serves as a strong hint that it is ready to launch new product in its pipeline.

Attractive growth story remain intact. We continue to like the company as it delivers attractive results and embark upon its multi-product expansion across Asia, where a good market mix of high penetration rate with stable earnings and high birth rate with high potential can be found. None of its global cord blood peers have comparable wide market exposure and strong margin such as Cordlife. On the back of this, it should warrant a premium for Cordlife. Our TP of SGD1.47 implies 25x FY14F, which is one point above its global peers and 14% discount to its local peers. Cordlife Group Limited – Summary Earnings Table FY JUNE (SGD m) 2012 2013 2014F 2015F 2016FRevenue 30.3 34.7 56.0 70.5 92.8 EBITDA 21.5 25.3 36.9 45.1 57.5 Recurring Net Profit 8.8 10.5 13.7 16.0 18.8 Recurring EPS (SGD cts) 3.8 4.5 5.9 6.9 8.1 DPS (SGD cts) 3.8 2.0 2.2 2.4 2.3 PER (x) 33.7 28.4 21.8 18.6 15.8 EV/EBITDA (x) 15.1 12.4 8.4 7.0 5.7 Div Yield (%) 3.0 1.6 1.7 1.9 1.8 P/BV (x) 4.2 3.8 3.5 3.1 2.7 ROE (%) 9.7 17.4 15.9 16.6 17.1 ROA (%) 7.7 11.2 10.5 10.7 10.8 Consensus Net Profit na 9.9 11.5 12.8 na Source: Company, Maybank KE estimates

Buy (unchanged) Share price: SGD1.28 Target price: SGD1.47 (from SGD1.29) John CHEONG johncheong@maybank-ke.com.sg (65) 6432 1461 Stock Information Description: Cordlife Group owns and operates private cord blood banks in Asia. The company focuses on providing cord blood banking services, which include the collection, processing, testing, preservation and storage of umbilical cord blood and tissue at birth. Ticker: CLGL SP Shares Issued (m): 232.5 Market Cap (USD m): 232.8 3-mth Avg Daily Turnover (USD m): 6.0 ST Index: 3,084.4 Free float (%): 65.9 Major Shareholder: % Well Springs Ltd 10.84 Coop International Pte Ltd 10.52 Golden Meditech Holdings Ltd 10.48 FIL Limited 9.00 Key Indicators

ROE (%) 17.4 Net gearing (%): Net cash BVPS/shr (SGD): 0.33 Interest cover (x): 306.8

Historical Chart

Performance: 52-week High/Low SGD1.19/SGD0.446 1-mth 3-mth 6-mth 1-yr YTD Absolute (%) 19.6 25.5 95.4 151.8 134.9 Relative (%) 25.5 38.1 106.2 149.0 141.2

0.40

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CLGL SP Equity

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Co. Reg No: 198700034E MICA (P) : 099/03/2012

Singapore 27 August 2013 Results Review

FJ Benjamin Softening Consumer Sentiment

FY13 results below expectations, no recovery yet. FJ Benjamin (FJB) reported its full-year FY6/13 sales with a decline of 5% YoY to SGD373.4m and net profit of SGD4.4m (-68% YoY), due to a drag on sales in North Asia, particularly in the Watches segment, as well as softening consumer sentiment in Singapore. Excluding a one off gain on sale of investment properties, results were still below our bearish estimates. On a more positive note, FJB has declared a 0.5cts final dividend, implying a dividend payout of 64%. We maintain our SELL call, in light of poor consumer sentiment in particular countries to continue to hamper on FJB’s earnings over the next year.

Poor sentiment persists in North Asia and Singapore. North Asia fell by 26% in Hong Kong and by 47% in China. While Indonesia and Malaysia saw growth in retail sales of 13% and 8% respectively, Singapore sales have remained poor on the back of strengthening currency and weak tourist spending. The management has highlighted operations in Singapore have become more difficult to handle due to rising business costs, weak store traffic and expects this to persist. While gross margin has maintained flat at 2.7% (-0.2ppt YoY), operating margin was hampered by increasing operating costs such as labour and rental, and fell by 3ppt YoY to 2%.

Business still goes on with heavy costs. Year-to-date, FJB has secured three new franchise brands, Tom Ford, Superdry and Valextra, affirming its franchising distribution strength in SE Asia. With a range of lifestyle and luxury retail brands joining FJB’s portfolio, FJB is expected to have a net opening of 14 stores across the region, bringing its total store count to 235 stores (212 stores in FY6/12). Bulk of the openings will be in Indonesia (+9), Malaysia (+6), and Singapore (+8). We are concerned on FJB’s wakening balance sheet unable to support the aggressive store openings. We expect net gearing to continue to soar from 0.53x, with continuously heavy capex and increasing operating costs weighing down on earnings.

Maintain SELL. We have lowered our earnings estimates further by 15-22%. Maintain SELL with TP of SGD0.21 now pegged to 1x P/B.

FJ Benjamin– Summary Earnings TableFYE Jun (SGD m) 2012 2013 2014E 2015E 2016ERevenue 393.2 373.4 406.8 436.6 451.4 EBITDA 26.7 15.3 14.6 17.5 20.3 Recurring Net Profit 13.9 4.4 4.7 6.1 7.5 Recurring Basic EPS (cents) 2.4 0.8 0.8 1.1 1.3 EPS growth (%) 7.1 -68.0 5.3 29.9 23.6 DPS (cents) 1.0 0.5 0.0 0.0 0.0 PER 10.7 35.9 34.7 26.0 20.7 EV/EBITDA (x) 9.3 17.3 17.9 15.4 13.3 Div Yield (%) 3.9 2.0 0.0 0.0 0.0 P/BV(x) 1.1 1.1 1.2 1.1 1.1 Net Gearing (%) 38.2 52.2 53.8 57.2 55.0 ROE (%) 5.1% 1.6% 1.6% 2.0% 2.4% ROA (%) 10.4% 3.4% 3.8% 4.8% 5.7% Source: Maybank IB

Sell (unchanged) Share price: SGD0.255 Target price: SGD0.21 (from SGD0.19) Alison FOK alisonfok@maybank-ke.com.sg (65) 6432 1447 Stock Information Description: A retailer and distributor for international luxury and lifestyle labels across Asia, including brands like Banana Republic, Catherine Deane, Celine, Gap, Givenchy, Goyard, Guess, La Senza, RAOUL and more. It also has an interest in St James Holdings. Today, the group has more than 190 stores. Ticker: FJB SP Shares Issued (m): 568.7 Market Cap (USD m): 113.4 3-mth Avg Daily Turnover (USD m): 0.1 ST Index: 3,084.41 Free float (%): 35 Major Shareholders: % Segulah Pte 16.2 Peter Lim 11.4 Raffles Inv 11.0 Key Indicators

ROE (%) 1.6% Net gearing (x): 0.53 NAV/shr (SGD): 0.23 Interest cover (x): 2.86

Historical Chart

Performance: 52-week High/Low SGD0.365/SGD0.245 1-mth 3-mth 6-mth 1-yr YTD Absolute (%) -1.9 -3.8 -10.5 -22.7 -19.0 Relative (%) 2.9 5.9 -5.6 -23.6 -16.9

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

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Co. Reg No: 198700034E MICA (P) : 099/03/2012

Singapore 27 August 2013 Economics

Better than expected rebound Industrial Production (IP) rebounded by +2.7% YoY in July 2013 (revised June 2013: -4.2% YoY; Consensus: +1.8% YoY) on the back of stronger growth in Transport Engineering, Electronics and General Manufacturing clusters amid declines in Precision Engineering and Biomedicals. From the previous month, IP fell by -3.3% MoM (June 2013: +3.7 % MoM) while the seasonally adjusted growth fell by a smaller quantum of -1.9% MoM (s.a June 2013: -1.9% MoM). IP in Jan-July 2013 dropped by -1.6% YoY compared to the +1.6% YoY recorded over the corresponding period last year.

Transport Engineering was the biggest contributor as it gained by +13.9% YoY (June 2013: +9.4% YoY) on strong gains in Marine & Offshore Engineering (July 2013: +19.0% YoY; June 2013: +5.3% YoY) which benefited from increased orders for rig building and ship conversion projects. This was supplemented by Aerospace Engineering (July 2013: +7.3% YoY; June 2013: +14.2% YoY) which advanced on increased repair and maintenance jobs from commercial airlines, which more than offset the decline in Land Engineering (July 2013: -0.5% YoY; June 2013: +25.2% YoY) which had risen at double-digit pace in the preceding two months.

The other two positive contributions came from Electronics and General Manufacturing Industries. Electronic production (July 2013: +3.5% YoY; June 2013: +2.6% YoY) gained for a fourth straight month on higher output of Computer Peripherals (July 2013: +14.7% YoY; June 2013: +31.1% YoY), Semi-Conductor (July 2013: +2.3% YoY; June 2013: +2.1% YoY) and Other Electronic Modules or Components (July 2013: +38.2% YoY; June 2013: +14.8% YoY). Separately, General Manufacturing Industries (July 2013: +5.4% YoY; June 2013: +1.3% YoY) benefitted from the pickup in growth of Miscellaneous Industries (July 2013: +13.1% YoY; June 2013: +4.5% YoY) that included gains in metal storage tanks and construction related products such as concrete & cement products, metal doors, windows, grilles & gratings and structural metal components.

The drags were Precision Engineering and Biomedical Manufacturing. Precision Engineering (July 2013: -7.4% YoY; June 2013: -15.5% YoY) marked the sixth consecutive month of decline as its biggest division, Machinery & Systems (July 2013: -8.0% YoY; June 2013: -19.8% YoY) fell on account of lower production of semiconductor-related equipment. This was compounded by Precision Modules & Components which fell further (July 2013: -6.8% YoY; June 2013: -9.5% YoY) on lower output in metal & plastic precision components and dies, moulds, jigs & fixtures. Meanwhile, the fall in Biomedical output moderated (July 2013: -1.3% YoY; June 2013: -18.4% YoY) as the lower output of Pharmaceuticals (July 2013: -4.4% YoY; June 2013: -23.0% YoY) was cushioned by the fifth consecutive month of robust growth in Medical Technology (July 2013: +16.3% YoY; June 2013: +12.9% YoY). Excluding biomedical output, IP gained by a higher +3.6% YoY (June 2013: +0% YoY)

Industrial Production, July 2013

Suhaimi Ilias suhaimi_ilias@maybank-ib.com (603) 2297 8682 Dr. Zamros Dzulkafli zamros.d@maybank-ib.com (603) 2082 6818 Ramesh Lankanathan ramesh@maybank-ib.com (603) 2297 8685 William Poh william.poh@maybank-ib.com (603) 2297 8683

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

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17 October 2011

PP16832/01/2012 (029059)

Results Review 27 August 2013

PP16832/01/2013 (031128)

Page 1 of 2

Malaysia

Kossan Rubber Industries The Party Continues

Results in line. 2Q13 net profit of MYR34m (+1% QoQ, +42% YoY)

brought 1H13 net profit to MYR67m (+46% YoY), making up 50% and

52% of our and consensus’ full-year forecasts respectively. While

Kossan’s share price has done remarkably well (+84% YTD), we think

its current FY14 PER valuation of 13x is still undemanding, compared

to its bigger peers’ 16-17x. We maintain our forecasts but raise our TP

to MYR7.12 (from MYR4.70), based on a target 15x FY14 PER (from

10x), still below our target PERs of 17-18x for its bigger peers. BUY.

2Q13: Stronger YoY. 2Q13 net profit of MYR34m was flattish QoQ on

a flattish sales volume and stable EBIT margin of 14% (+0.1-ppt QoQ).

However, it was much stronger on a YoY basis (+42% YoY) due to: (i) a

much higher sales volume at its glove manufacturing division (+22%

YoY); and (ii) a higher EBIT margin (+3.5-ppt YoY), owing to lower raw

material costs.

Diversifying businesses. Though Kossan is still adding more nitrile

glove capacity (+12% by 2Q14), it is also concurrently growing its other

business segments in order to reduce its over-reliance in the nitrile

segment. Other business segments which Kossan is currently growing

are: (i) Technical Rubber Product (around 12% of total revenue), where

there is a strong demand seen in the automotive sector in US; (ii) in-

house brand surgical gloves (“InTouch”), where it offers a cheaper

surgical glove alternative to the emerging markets; and (iii) cleanroom

gloves and face mask operation in China, where the contribution to

group earnings is insignificant currently.

Maintain forecasts. Earnings in the sequential quarters may be

stronger QoQ as more sales deliveries take place. We maintain our

earnings forecasts for now, which has imputed for a 15% and 12%

glove volume growth in FY14 and FY15 respectively. While Kossan’s

forward PER of 13x is above its historicals, we still see further upward

re-rating as there is a lack of investible glove plays and the big-cap

peers have already traded up to 16-17x now.

Kossan Rubber Industries – Summary Earnings Table Source: Maybank KE

FYE Dec (MYR m) 2011A 2012A 2013F 2014F 2015F Revenue 1,092.1 1,235.5 1,422.8 1,629.7 1,802.3

EBITDA 161.7 190.5 238.5 267.7 288.8

Recurring Net Profit 91.4 104.5 134.4 151.8 163.5

Recurring Basic EPS (sen) 28.6 32.7 42.0 47.5 51.1

EPS growth (%) (19.4) 14.3 28.7 12.9 7.7

DPS (sen) 7.0 12.0 16.8 21.4 25.6

BVPS (MYR) 1.56 1.92 2.18 2.44 2.69

PER 21.6 18.9 14.7 13.0 12.1

EV/EBITDA (x) 12.9 10.9 8.8 7.8 7.1

Div Yield (%) 1.1 1.9 2.7 3.5 4.1

P/BV(x) 4.0 3.2 2.9 2.5 2.3

Net Gearing (%) 21.6 16.3 17.1 13.8 9.9

ROE (%) 18.3 17.0 19.3 19.5 19.0

ROA (%) 11.2 10.5 11.9 12.3 12.2

Consensus Net Profit (MYR m) - - 128.5 151.9 170.3

Buy (unchanged)

Share price: MYR6.17 Target price: MYR7.12 (from MYR4.70)

Lee Yen Ling lee.yl@maybank-ib.com (603) 2297 8691

Stock Information

Description: Balanced latex and nitrile glove OEM Ticker: KRI MK Shares Issued (m): 318.6 Market Cap (MYR m): 1,965.9 3-mth Avg Daily Turnover (USD m): 1.36 KLCI: 1,722.49 Free float (%): 37.3 Major Shareholders: % KOSSAN HOLDINGS SDN 51.2 KUMPULAN WANG PERSAR 5.6 EMPLOYEES PROVIDENT 5.0 INVESCO LTD 5.0

Historical Chart

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Performance:

52-week High/Low MYR6.24/MYR2.97

1-mth 3-mth 6-mth 1-yr YTD

Absolute (%) 5.8 51.2 88.1 87.0 83.6

Relative (%) 10.5 54.1 82.3 82.5 81.6

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

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17 October 2011

PP16832/01/2012 (029059)

Results Preview 27 August 2013

PP16832/01/2013 (031128)

Page 1 of 2

Malaysia

Sunway Expect Stronger Property Sales In 2H13

Maintain BUY. Sunway’s 1H13 results, to be released on 29 Aug, will

likely meet expectations. Given strong property product launches in the

pipeline (≈MYR1.5b new launches in 2H13), Sunway could exceed its

internal sales target of MYR1.1b for 2013 (2012: MYR1.6b). We adjust

our FY13/14/15 earnings forecasts by -1%/-1%/+4% to reflect the

removal of its China project from our forecasts and higher stakes in

Sunway Velocity (SV) and Sunway Iskandar (SI). Our TP is largely

intact at MYR3.47 on an unchanged 20% discount to MYR4.34 RNAV.

To track expectations. We expect core net profit of MYR105-110m

(+22% QoQ, +42% YoY) in 2Q13, lifting 1H13 earnings to MYR200m

(+41% YoY), accounting for 50% of our full-year forecast. The better

quarterly earnings will be underpinned by: 1) MYR1.6b in property sales

achieved in 2012, 2) MYR4.2b outstanding construction orderbook as at

today, and 3) strong net income growth in SunREIT (+15% YoY).

Likely to exceed its internal property sales target. Despite the lack

of new launches in 1H13, Sunway has managed to lock-in ≈MYR300m

in property sales in 2Q13, lifting 1H13 sales to ≈MYR500m, or 45% of

its MYR1.1b sales target for 2013. We think there is a high chance for

Sunway to exceed its internal target for 2013 given strong pipeline

launches including SI’s phase 1 and the Novena project in Singapore.

Another MYR600m new construction works? Sunway has

successfully bagged MYR1.76b of contracts YTD, lifting total

outstanding order book to MYR4.2b, providing medium-term earning

visibility. This is close to our MYR1.8b job win target for 2013. Hence

we make no change to our assumptions. We understand that Sunway is

currently bidding for another MYR600m worth of building works.

Earnings adjustments. We adjust our earnings forecasts to factor in:

1) the removal of Tianjin Eco City (China) from our forecasts due to

potential delays in property launches and 2) higher 85% equity stake in

SV (from 50%) and 45% in SI (from 38%). Our RNAV remains intact at

MYR4.34. Sunway has relatively low foreign shareholding of 5.9%

(excl. GIC) compared to its Iskandar peer, UEMS’s 20.4%.

Sunway Bhd – Summary Earnings Table Source: Maybank KE

FYE Dec (MYR m) 2011A 2012A 2013F 2014F 2015F Revenue 3,738.9 3,876.8 3,987.8 4,519.7 4,669.8 EBITDA 397.7 535.1 531.2 634.8 722.2 Recurring Net Profit 327.1 350.6 401.5 455.2 553.2 Recurring Basic EPS (sen) 25.3 27.1 28.0 26.4 32.1 EPS growth (%) 5.1 7.2 3.1 (5.5) 21.5 DPS (sen) 0.0 6.0 5.6 5.3 6.4 BVPS (MYR) 2.33 2.75 3.30 2.96 3.22 PER 11.7 10.9 10.6 11.2 9.3 EV/EBITDA (x) 10.5 7.6 6.9 6.9 5.8 Div Yield (%) 0.0 2.0 1.9 1.8 2.2 P/BV(x) 1.3 1.1 0.9 1.0 0.9 Net Gearing (%) 49.6 45.2 16.8 12.9 7.5 ROE (%) 12.4 15.0 8.5 8.9 10.0 ROA (%) 4.7 6.1 4.0 4.0 4.8 Consensus Net Profit (MYR m) - - 386.9 446.2 498.6 Earnings Revision (%) - - (1.3) (1.3) 4.0

Buy (unchanged)

Share price: MYR2.97 Target price: MYR3.47 (from MYR3.48)

Wong Wei Sum, CFA weisum@maybank-ib.com (603) 2297 8679

Stock Information

Description: One of the leading property and construction

groups in Malaysia. As at Mar 2013, it has unbilled sales of MYR1.9b (1.2x of our 2014 property revenue forecast) and outstanding construction orderbook of MYR4.2b as at todate (2.6x of our

construction revenue forecasts). Foreign shareholdings stood at 5.9% as at July 2013. Ticker: SWB MK

Shares Issued (m): 1,723.5 Market Cap (MYR m): 5,118.8 3-mth Avg Daily Turnover (USD m): 1.22 KLCI: 1,722.49

Free float (%): 22.8 Major Shareholders: % SUNGEI WAY CORP SDN 44.5

YEAN TIH CHEAH 13.5 GOVERNMENT OF SINGAP 12.2

Key Indicators

Net cash / (debt) (MYR m): (1,698) NTA/shr (MYR): 2.82 Net Gearing (x): 0.47

Historical Chart

1.5

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SWB MK Equity

Performance:

52-week High/Low MYR3.614/MYR1.885

1-mth 3-mth 6-mth 1-yr YTD

Absolute (%) (10.0) (7.6) 35.7 53.3 43.6

Relative (%) (5.3) (4.7) 29.8 48.8 41.6

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

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Company Update 27 August 2013

PP16832/01/2013 (031128)

Malaysia

Ta Ann Holdings Expect A Weak 2Q13 Core Profit

Maintain BUY. 2Q13 core earnings are expected to remain lackluster

as forewarned in our May 2013 reports given that FFB production is

typically skewed to 2H, and as Ta Ann continues to clear old

Tasmanian plywood stocks at a steep discount. Still, 2Q13 bottom line

could be lifted by a one-off compensation gain from the Australian

government. Earnings would play catch up in 2H13 on significantly

higher HoH FFB output while its timber earnings could surprise

positively on stronger log earnings and narrowing losses at its plywood

operations driven by internal structural changes. We maintain our

earnings forecasts and MYR4.33 TP on 15x 2014 PER.

Seasonally weak palm oil production. Ta Ann recorded a 5% QoQ

increase in FFB output to 108,051 MT (+8% YoY) in 2Q13. Amidst a

flattish spot CPO ASP in 2Q13, we expect a muted palm oil earnings

contribution in 2Q13. However, we expect a significantly stronger 2H13

earnings on higher HoH FFB output. For 1H13, Ta Ann’s FFB output

grew 12% YoY to 211,282 MT or 33% of our 2013 forecast. This was,

however, below its historical 1H:2H output ratio of 37:63.

Log prices surged. The average price for Ta Ann’s 2Q13 log exports

has strengthened by 20% YoY (+22.5% QoQ) to e.USD255/m3 due to

logs shortage on poor weather which has affected harvests. Volume

exports for 1H13 were down 7% YoY. The surge in prices could be

partly seasonal and may not sustainable. July 2013’s log price of

USD254/m3 is 6% off its peak in May 2013 but still 22% higher YoY. A

potential party pooper is a depreciating Rupee (–14.5% YTD against

the MYR) which could slow demand from India.

Plywood prices have lagged. Ta Ann’s 2Q13 plywood ASP recovery

has lagged log prices, in part due to steep price discounting to clear old

Tasmanian plywood stocks. ASP grew 6% QoQ (+3% YoY). As old

plywood stocks have been largely cleared in 1H13, we expect a

recovery in plywood ASP in 2H13. Both housing starts and plywood

imports in Japan have risen since Mar ‘13 although it is unclear if the

demand is due to re-stocking. Any strong plywood prices recovery may

be capped by the weakening Yen (-12% YTD, -20% YoY vs MYR).

Ta Ann Holdings– Summary Earnings Table Source: Maybank KE

FYE Dec (MYR m) 2011A 2012A 2013F 2014F 2015F

Revenue 925.6 797.4 901.7 988.0 1,076.9 EBITDA 294.1 157.9 228.6 254.5 300.3 Recurring Net Profit 154.7 58.3 66.3 106.9 146.4 Recurring Basic EPS (sen) 41.7 15.7 17.9 28.8 39.5 EPS growth (%) 106.3% (62.3)% 101.9% 5.3% 18.2% DPS (sen) 20.0 5.0 8.1 13.0 17.8 BVPS (MYR) 2.27 2.37 2.63 2.83 3.05 PER 8.6 22.8 20.0 12.4 9.1 EV/EBITDA (x) 5.4 10.6 8.7 6.5 5.0 Div Yield (%) 5.6 1.4 2.2 3.6 5.0 P/BV(x) 1.6 1.5 1.4 1.3 1.2 Net Gearing (%) 27.7 34.3 20.4 17.8 13.9 ROE (%) 17.7% 6.1% 11.7% 11.4% 12.5% ROA (%) 9.5% 3.4% 6.5% 6.3% 7.1% Consensus Net Profit (MYR m) n.a. n.a. 56.6 107.3 134.2

Buy (unchanged)

Share price: MYR3.58 Target price: MYR4.33 (unchanged)

CHAI Li Shin lishin.c@maybank-ib.com (603) 2297 8684 ONG Chee Ting, CA ct.ong@maybank-ib.com (603) 2297 8678

Stock Information

Description: Pure upstream oil palm plantation player in Sarawak and an integrated timber player that owns timber concessions. Manufactures and sells log, plywood, sawntimber and moulding. (Planted oil palm estate in 2012 = 32,093 ha) Ticker: TAH MK Shares Issued (m): 370.5 Market Cap (MYR m): 1,422.9 3-mth Avg Daily Turnover (US$ m): 0.30 KLCI: 1,722.49 Free float (%): 36.7 Major Shareholders: % MOUNTEX SDN BHD 21.0 WAHAB HAJI DOLAH BIN 10.9 EMPLOYEES PROVIDENT 9.2 BIN SEPAWI ABDUL HAM 9.0

Key Indicators

Net cash / (debt) (MYR m): (361.7) NTA/shr (MYR): 2.57 Net Gearing (x): 0.4

Historical Chart

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TAH MK Equity

Performance:

52-week High/Low MYR4.2/MYR3.34

1-mth 3-mth 6-mth 1-yr YTD

Absolute (%) (7.2) 5.5 13.6 (8.6) 9.7

Relative (%) (2.5) 8.3 7.8 (13.1) 7.7

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

17 October 2011

PP16832/01/2012 (029059)

Company Update 27 August 2013

PP16832/01/2013 (031128)

Page 1 of 2

Malaysia

JT International Post-Briefing Update

Reiterate BUY. We remain positive on JTI’s long-term prospects post

its analyst briefing. We expect JTI to begin reaping significant cost

savings in FY14 which would drive its earnings growth. In addition, we

think it may be possible for JTI to pay out a special dividend in FY14

when its net cash hits MYR1/share. There is no change to our earnings

forecasts. We reiterate our BUY call with an unchanged DCF target

price of MYR7.40 which implies 14x FY14 earnings..

Improvement in volume. Management clarified during the analyst

briefing that JTI’s sales volume rose 3.3% YoY in 2Q13 due to trade

loading, which happened between 3 June and 17 June, and better

product mix. Recall, BAT increased the price of cigarette per box

(MYR0.30) on 3 June whereas JTI only started to increase its prices on

17 June. As a result, retailers started to trade load within that period -

Mevius sales volume rose 13% YoY while Winston inched up 1% YoY.

Lower illicit cigarettes. The market share for illicit cigarettes declined

1.1ppt YoY and 0.2ppt QoQ for the Mar-May 2013 period to 33.6%, the

third consecutive quarter of declines. The YoY decline in the market

share for illicit came mainly from a fall in the market share of smuggled

kretek of 1.6ppt to 10.6% of total industry volume. This indicates that

regulation enforcers’ efforts in battling illicits are having some impact.

Cost savings from tobacco leaf imports. We expect JTI’s EBITDA

margin to expand from 12.6% in FY12 to 15% in FY13 (1H13: 16.1%;

+0.8ppt YoY) and 15.9% in FY14, driven primarily by cost savings from

the import of tobacco leaf, which is about 30% cheaper than domestic

tobacco leaf. As it stands, local leaf still constitutes 6-7 months of its

stockpile and this is being drawn down gradually.

Brewing special dividends? Based on our estimates, JTI’s net cash

could hit MYR1/share in FY14. JTI has, in the past, paid special

dividends of 15 to 75sen/share when its net cash reached MYR1/share.

Its latest net cash position stood at 58.9sen/share at end-Jun 2013. We

maintain our BUY call with an unchanged DCF target price of MYR7.40.

JT International– Summary Earnings Table

FYE Dec (MYR m) 2011A 2012A 2013F 2014F 2015F Revenue 1,197.8 1,234.3 1,237.2 1,239.5 1,243.4 EBITDA 173.8 155.8 185.3 196.7 202.9 Recurring Net Profit 122.8 113.5 128.3 138.7 145.2 Recurring Basic EPS (cents) 47.0 44.5 49.0 53.0 55.5 EPS growth (%) (8.2)% (17.5)% (2.8)% 8.1% 4.7% DPS (cents) 22.5 78.0 43.0 22.0 22.0 BVPS (MYR) 1.74 1.42 1.63 1.83 2.03 PER 14.0 15.1 13.4 12.4 11.8 EV/EBITDA (x) 8.4 9.4 8.5 7.5 6.9 Div Yield (%) 3.4 11.9 6.5 3.3 3.3 P/BV(x) 3.8 4.9 4.7 3.8 3.2 Net Gearing (%) NA NA NA NA NA ROE (%) 29.1% 25.1% 35.7% 34.0% 29.5% ROA (%) 24.1% 20.4% 27.8% 27.2% 24.5% Consensus Net Profit (MYR m) - - 125.9 131.6 134.0 Source: Maybank KE

Buy (unchanged)

Share price: MYR6.57 Target price: MYR7.40 (unchanged)

Chai Li Shin lishin.c@maybank-ib.com (603) 2297 8684

Stock Information

Description: Market-leading manufacturer of tobacco products in Malaysia. Ticker: RJR MK Shares Issued (m): 261.5 Market Cap (MYR m): 1,718.3 3-mth Avg Daily Turnover (USD m): 0.08 KLCI: 1,722.49 Free float (%): 25.1 Major Shareholders: % JT INTERNATIONAL HOL 60.4 EMPLOYEES PROVIDENT 7.8 KUMPULAN WANG PERSAR 6.8

Historical Chart

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Performance:

52-week High/Low MYR7.4/MYR6.18

1-mth 3-mth 6-mth 1-yr YTD

Absolute (%) (0.8) (3.4) 1.9 (7.5) 0.3

Relative (%) 4.0 (0.5) (4.0) (12.0) (1.7)

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

17 October 2011

PP16832/01/2012 (029059)

Company Update 27 August 2013

PP16832/01/2013 (031128)

Page 1 of 2

Malaysia

Nestle (Malaysia) Stable Growth In Domestic Sales

Maintain HOLD. Post analyst briefing, we maintain our earnings

forecasts, HOLD call and DCF-based TP of MYR62.00 on Nestle. While

fundamentals remain strong, we anticipate (i) a weaker 2H13 as the

group incurs higher fixed costs, and advertisement and promotional

expenses especially in 4Q13, and (ii) sluggish export sales growth.

Lower margins ahead. We expect a lower operating margin of 12% in

2H13 (1H13: 17.4%) as the group incurs more expenses for yearly

machinery maintenance and promotional activities towards the year

end. Prices of key raw materials have been declining YTD except for

milk powder. As such, the group has raised the selling prices for its milk

products by 4-5% in July 2013 to cover the cost increase.

Slowdown in the export markets. Export sales were flat YoY and

QoQ at MYR300m in 2Q13. Noticeably, export sales growth has been

slowing on a YoY basis since 1Q12. This was due to softer demand

and new manufacturing facilities by the affiliates including Nestle

Indonesia and Philippines. On the domestic front, volume growth (real

internal growth) was still healthy at c. +8% YoY in 1H13.

Higher capex in 2H13. Nestle’s capex is typically skewed towards 4Q.

Despite only MYR38m spent in 1H13, management is guiding for a total

capex of MYR250m for 2013 which is higher than our assumption of

MYR200m. The bulk of the capex will be spent on (i) the new factory in

Shah Alam which could double the capacity of its ready-to-drink (RTD)

beverages and (ii) additional confectionery (Kit Kat and Nestle Crunch)

capacity at its existing plant in Chembong. Revenue from the

confectionery segment surged 55% YoY in 1H13 and contributed to

5.6% of total group revenue (1H12: 3.8%).

No impact from Fonterra issues. Nestle was not affected by the milk

powder contamination issue that has prevailed since early Aug.

However, such issues are generally negative to the entire industry.

Nestle will continue to work closely with Fonterra to ensure that food

safety specifications are met.

Nestle (Malaysia)– Summary Earnings Table Source: Maybank KE

FYE Dec (MYR m) 2011A 2012A 2013F 2014F 2015F Revenue 4,246.7 4,556.4 4,920.9 5,462.2 6,227.0 EBITDA 681.3 758.5 811.3 903.3 1,038.0 Recurring Net Profit 427.1 505.4 551.5 610.1 703.2 Recurring Basic EPS (sen) 182.1 215.5 235.2 260.2 299.9 EPS growth (%) 9.1% 18.3% 9.1% 10.6% 15.3% DPS (sen) 180.0 210.0 223.4 247.1 284.9 BVPS (MYR) 2.78 3.20 3.32 3.45 3.60 PER 37.5 31.7 29.0 26.2 22.8 EV/EBITDA (x) 23.9 21.2 20.0 18.0 15.7 Div Yield (%) 2.6 3.1 3.3 3.6 4.2 P/BV(x) 24.5 21.3 20.6 19.8 19.0 Net Gearing (%) 44.3% 8.6% 24.6% 33.4% 38.1% ROE (%) 67.5% 72.0% 72.1% 76.8% 85.0% ROA (%) 22.5% 25.8% 27.6% 27.9% 29.4% Consensus Net Profit (MYR m) na na 544.1 586 649.6

Hold (unchanged)

Share price: MYR68.26 Target price: MYR62.00 (unchanged)

Kang Chun Ee chunee@maybank-ib.com (603) 2297 8675

Stock Information

Description: Packaged food and beverage (F&B) market leader in Malaysia. Ticker: NESZ MK

Shares Issued (m): 234.5 Market Cap (MYR m): 16,007.0 3-mth Avg Daily Turnover (USD m): 0.34 KLCI: 1,722.49

Free float (%): 15.0 Major Shareholders: % NESTLE SA 72.6

EMPLOYEES PROVIDENT 10.0

Key Indicators

Net cash / (debt) (MYR m): (62.4) NTA/shr (MYR): 2.75 Net Gearing (x): 0.1

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Performance:

52-week High/Low MYR70.2/MYR56.5

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Absolute (%) (0.5) 7.4 14.9 8.3 8.6

Relative (%) 4.2 10.2 9.0 3.8 6.6

Stock Information

Description: Packaged food and beverage (F&B) market leader in Malaysia.

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

17 October 2011

PP16832/01/2012 (029059)

Sector Update 27 August 2013

PP16832/01/2013 (031128)

Page 1 of 2

Malaysia

Oil & Gas PETRONAS’ 1H 2013 Report Card

PETRONAS’ is cautioning for a weaker 2H13 and concerns over

escalating costs. New projects may face delays as tenders are being

reviewed. The RAPID project is a case in point. Despite the bearish

undertone, it remains committed to pay MYR27b in dividends for 2013.

We remain selectively Overweight on the sector. Segment-wise, we like

the offshore drilling, OSV, fabrication works and FPSO spaces. Bumi

Armada and SAKP are our preferred big-cap picks. Perisai, Alam and

Perdana Petroleum are our BUYs for small-mid caps.

1H13 results snapshot. While revenue was up 4% YoY to MYR151b,

driven by higher contributions from its gas & power (+9% to MYR44bn

on improved gas trading volumn) and downstream (+4% to MYR75b)

activities, PETRONAS’ pretax and net profit fell 5%/4% YoY to

MYR51b/MYR30b respectively. The underlying weakness was largely

due to lower margins from higher operating expenses and lower non-

operating income.

Higher capex, but lower dividends on lower 2013 earnings outlook.

Capex spending in 1H13 was up 11% YoY to MYR22b, bringing its total

spending in 2011-1H13 to MYR109b (36% of its 5-year MYR300b

capex plan for 2011-15). PETRONAS paid MYR10b in dividends in

1H13 and is committed to pay MYR27b (-10% YoY) for 2013. Overall,

PETRONAS has guided for a pretax profit of MYR91b-MYR92b for

2013, which implies a weaker 2H13 versus 1H13 (-22% HoH).

Cost concerns, projects under review - RAPID’s FID. President and

CEO, Tan Sri Shamsul Azhar Abbas said that PETRONAS is reviewing

the costs of some of its projects in light of the cost escalations,

especially upstream costs. It will scrap projects if the economic returns

are not compelling. The final investment decision (FID) on RAPID will

be made known by Mar-Apr 2014.

Our views. PETRONAS’ revelation on project cost escalations, tender

delays, and project reviews is coherent with the other oil majors

worldwide. We have already seen this trend emerging and the market is

also pricing in this outlook. The RAPID project is a case in point, with

the sheer scale of the investment (MYR60b) warranting a detailed

review. We remain positive of several projects in the pipeline, over the

next 18 months, to sustain the country's domestic hydrocarbon

productivity. We expect fabrication contracts to flow from 4Q13. And,

with PETRONAS' Vestigo to undertake domestic marginal field

developments, we expect stronger RSC awards in 2H13.

Stock picks. We expect Bumi Armada to gain traction in 2H13 as

FPSO projects are awarded. With 12 tenders in the pipeline, it expects

to pick up 2 new jobs (i,e. Kraken, Madura). SAKP is also a prime

beneficiary for new RSC projects while Perisai will likely gain from

import substitution in the jack-up drilling space. Alam and Perdana

Petroleum are primary beneficiaries from the subsequent waves of

PETRONAS’ OSV contracts.

Overweight (unchanged)

Liaw Thong Jung tjliaw@maybank-ib.com (603) 2297 8688

O&G: Summary of recommendations

Stock Name Ticker Rec Shr Price @ 26 Aug

TP (MYR)

Alam Maritim AMRB MK Buy 1.48 1.90

Bumi Armada BAB MK Buy 3.92 4.40

Dialog DLG MK Hold 2.66 3.05

Gas Malaysia GMB MK Hold 3.36 2.90

KNM KNMG MK Sell 0.42 0.23

MMHE MMHE MK Hold 3.66 4.20

Perdana Pet PETR MK Buy 1.77 2.50

Perisai PPT MK Buy 1.45 1.80

Petronas Gas PTG MK Hold 19.76 20.20

SapuraKencana SAKP MK Buy 3.51 4.60

Wah Seong WSC MK Sell 1.77 1.33

Source: Maybank KE

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYS T CERTIFICATIONS

Company Update 26 August 2013

Thailand

Tipco Asphalt PCL

Sales Target Cut; Better 2H13 In Store

Slower sales but profit forecasts retained. Management has cut TASCO’s 2013 sales target to 1.36m tonnes from 1.52m tonnes due to slower-than-estimated growth; however, 2H13 sales should be better than 1H. We keep our profit forecast unchanged at THB1.037b (+61% YoY). TASCO’s earnings prospects are strongly supported by road development and maintenance by the Department of Highways and the Department of Rural Roads. The asphalt plant in Malaysia has better cost management with material hedging and robust foreign demand. We maintain our BUY rating and TP of THB90.00. Management reduced TASCO’s 2013 sales target to 1.3 6m tonnes. Last Friday, TASCO’s management cut its 2013 asphalt sales target to 1.36m tonnes (+3% YoY) from 1.52m tonnes, on a lower domestic sales estimate of 360,000 tonnes from 480,000 tonnes (-6% YoY) due to slower-than-estimated growth. Management has maintained its international sales target at 1m tonnes (+7% YoY), driven by sales growth in Australia and Malaysia. Management also retains its target of 8m bbl of crude oil (+11% YoY) for the production of 900,000 tonnes of asphalt (650,000 tonnes ordered so far this year). 2H13 sales to be better than in 1H13. We estimate sales volume in 2H will increase to 770,000 tonnes after 600,000 tonnes were sold in 1H13, driven by growth in both the domestic and international markets. We expect more spending on road building and maintenance in 2H13 following some delays in 1H13. The Australian and Malaysian markets are the main drivers of international sales. Revising sales but earnings forecasts are unchanged . In accordance with management’s new targets, we cut our sales estimate, the same level as last year. However, we keep our profit forecast unchanged at THB1.037b (+61% YoY) on higher profitability vs our previous forecast. TASCO’s earnings will be driven by both domestic and foreign demand, with domestic asphalt demand anchored by the government’s various road projects while demand from international markets has continued to grow. TASCO is a leading player in ASEAN with a strong low-cost logistics network. Maintain BUY and THB90 TP. TASCO announced a dividend of THB1 per share or a 1H13 payout of 26%. The stock is currently trading on a low 2013 PER of 7.7x. With continued earnings growth on the cards, we maintain our BUY recommendation and 12-month TP of THB90.00 based on TASCO’s average forward PER + 1SD of 12.62x.

TASCO – Summary Earnings Table FYE: Dec 31 (Btmn) 2011 2012 2013F 2014F 2015F Revenue 22,304 37,663 37,777 39,914 42,157 EBITDA 1,057 1,483 1,908 2,016 2,125 Recurring Net Profit 172 654 1,037 1,120 1,215 Net Profit 578 642 1,037 1,120 1,215 EPS (Bt) 3.79 4.21 6.80 7.34 7.97 EPS growth (%) (42.7) 11.1 61.5 8.0 8.5 DPS (Bt) 1.25 0.00 2.24 2.42 2.63 PER 13.9 12.5 7.7 7.1 6.6 EV/EBITDA (x) 13.6 12.5 9.3 7.4 7.6 Div Yield (%) 2.4 0.0 4.3 4.6 5.0 P/BV(x) 2.0 1.8 1.5 1.3 1.1 Net Gearing (%) 157.9 236.5 176.7 111.4 113.6 ROE (%) 16.4 15.2 21.0 19.1 18.2 ROA (%) 4.4 3.7 5.5 6.0 6.5 Consensus Net Profit (Btmn) - - 802 893 - Source: Company reports and MBKET estimates.

Buy (unchanged)

Share price: THB52.50 Target price: THB90.00 Surachai Pramualcharoenkit Surachai.P@maybank-ke.co.th (02) 658 6300 Stock Information

Description:. TASCO produces and distributes various types of asphalt products for road construction and maintenance. The Company has production plants throughout Thailand and has its own asphalt refinery in Malaysia. Moreover, it has ocean-going vessels to transport asphalt to customers in several countries in Asia Pacific as well as production plants in China, India and Cambodia. TASCO was listed on the SET in March 1991. Ticker : TASCO TB Shares Issued (mn) : 153 Market Cap (US$mn): 251.4 3-mth Avg. Daily Turnover (US$mn): 1.12 SET Index: 1,338.13 Free float (%): 37.64 Major Shareholders : % COLAS 32.06 Tipco Foods PCL 24.33

Key Indicators

ROE – annualised (%) 21.0

Net cash (THBmn): -9,653

NTA/shr (THB): 35.7

Interest cover (x): 6.8

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52-week High / Low THB82.50 / THB39.00 1-mth 3-mth 6-mth 1-yrs Ytd Absolute (%) -12.1 -32.8 -11.0 31.9 20.6 Relative (%) -1.6 -20.1 1.4 20.4 24.1

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

17 October 2011

PP16832/01/2012 (029059)

Flash Note 26 August 2013

Thailand

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Company Update

Thailand

27 August 2013

Siam Cement

Establishing a firm footing in Myanmar

Maintain BUY: By investing THB12.4bn in a fully integrated cement plant in Myanmar, SCC enters that market in the best possible way, in our view, and putting the Group well-placed to benefit from the potential surge of demand arising from fast development activities characteristic of young developing nation. The investment cost looks high because this is Greenfield. However, with prospective EBITDA north of 50%, the payback period is short. Its investment in Myanmar, to start commercial run in 2Q16 will add one more source of ROE enhancements for the group. The recent scaremongering has shed 6% off SCC’ market value and is creating a good opportunity to accumulate the stock. Maintain BUY.

Via cement SCC conquers: Cement is very basic need in the early stage of development in any country. SCC’ fully integrated cement plant + in-house power will cash into this trend in Myanmar. The plant has a potential payback period of about five years, based on our estimate. Given the long economic life of the cement plant in conjunction with a long limestone mining license, there is high economic value add here.

More than fully-integrated: The investment cost of the cement plant is equivalent to US$206/ton slightly expensive versus historic norm of US$150-175/ton (best technology) because the plant is Greenfield and lays down foundation for a substantial capacity expansion in the future. There is also a jetty facility that will handle transport of cement as well as the incoming coal from Indonesia. The coal-fired power plant will cost US$1/MW, in line with industry average, but its value is to provide SCC’ plant a stable source of electricity. If the waste heat recovery program is successful, there is scope for SCC to sell some power to the grid until the expansion comes along.

Short payback: The operating conditions in the Myanmar’s plant is similar to that of Thailand - proximity to the limestone mine, stable power, coal imported – so the cash production cost is most likely to be similar if not cheaper if we allow that the kiln is new, hence more efficient. At a selling price of US$80-90/ton, as per SCC, nearly on par that of Thailand’s we see EBITDA margin potentially north of 50%. The investment has a short payback period.

Expansion is return enhancing: SCC mgt guides that the basic infrastructure of the plant is designed for a significant expansion in the future. No specific capacity is guided but we note that at 10% demand growth for the next five years and assuming SCC can keep its market share at 40%, the output from the new cement plant can be absorbed by the market. If the market share gains are higher or demand growth is faster, then the capacity expansion can follow in a short time, thus lowering fixed costs further.

SCC – Summary Earnings Table

FYE: Dec 31 (Btmn) 2011 2012 2013F 2014F 2015F Revenue 368,579 407,601 437,154 465,696 485,398 EBITDA 43,732 42,171 51,554 63,448 67,136 Recurring Net Profit 27,281 23,580 33,348 42,538 46,789 Net Profit 27,281 23,580 34,848 42,538 46,789 EPS (Bt) 22.73 19.65 29.04 35.45 38.99 EPS growth (%) (27.0) (13.6) 47.8 22.1 10.0 DPS (Bt) 12.50 11.00 14.50 17.72 19.50

PER 18.0 20.9 14.1 11.6 10.5 EV/EBITDA (x) 14.3 15.1 12.5 10.1 9.5 Div Yield (%) 3.0 2.7 3.5 4.3 4.8 P/BV(x) 3.5 3.4 3.0 2.6 2.3

Net Gearing (%) 94.4 99.7 91.0 78.3 67.4 ROE (%) 20.0 16.6 22.6 24.0 23.1 ROA (%) 7.4 6.1 8.6 10.0 10.3 Consensus Net Profit (Btmn) - - 34,932 40,347 46,641 Source: Company reports and MBKET

Buy (unchanged)

Share price: THB410.00 Target price: THB550.00 (Unchanged)

Maria Lapiz Institutional Research Department Maria.L@maybank-ke.co.th (662) 257 0250

Surachai Pramualcharoenkit Surachai.P@maybank-ke.co.th (02) 658 6300

Stock Information

Description: SCC is a holding company with businesses covering the cement, building products, pulp and paper and Petrochem industries. It also has a strong distribution and trading activity and recently acquired 30% stake in listed Siam Global Services, a home improvement retailer. SCC is the largest construction material conglomerate in Thailand and aims to be one of the major players in the ASEAN market. SCC was listed in on the SET in January 1976. It is owned by the Crown Property Bureau – the entity managing the wealth of the Crown.

Ticker : SCC TB

Shares Issued (mn) : 1,200

Market Cap (US$mn): 16,291

3-mth Avg. Daily Turnover (US$mn): 20.9

SET Index: 1,329.18

Free float (%): 67.69

Major Shareholders : %

Crown Property Bureau 30.00

Thai NVDR 12.59

Key Indicators: 2014

ROE – annualised (%) 24.0

Net gearing (% ): 78%

NTA/shr (Btmn): 158

Interest cover (x): 7.9

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52-week High / Low THB502/ THB325

1-mth 3-mth 6-mth 1-yrs Ytd Absolute (%) -8.9 -12.8 -13.5 25.0 -6.8 Relative (%) 1.2 4.6 -0.4 16.0 -2.4

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYS T CERTIFICATIONS

Analyst Meeting 26 August 2013

Thailand

Workpoint Entertainment Downgrade Earnings But 2H13 To Be Better We lower our 2013-14 earnings projections for WORK by 23% for each year as its 1H13 earnings met just 23% of our full-year forecast for 2013. Nevertheless, we are still positive on the company as we expect its 2H13 performance to improve after the recent programme reshuffle, with the satellite TV business likely turning a profit in 4Q13, and more events, concerts and movie releases leading to higher revenues. The introduction of digital TV next year could provide additional upside. Reiterate BUY as we believe the recent dip in share price was merely a response to WORK’s poor 1H13 earnings. However, we cut our TP from THB54.50 to THB40, based on the media sector’s average 2013-14 PER of 23x.

New programmes to drive revenue. TV revenues look set to improve in 2H13 following a revamp of the Carabao The Series and The Band (both music contests). We understand that the bulk of the revenue will come from sponsorships. WORK also has the three-year rights to broadcast the Volleyball World Championship, which will be aired during non-prime-time slots in September but with premium ad rates. Management expects to raise ad rates for the current 8-9 popular programmes next year.

Satellite TV to turn to profit in 4Q13. Satellite TV suffered a loss in 1H13 as WORK bought content for digital TV and the new satellite TV channel (Channel 6), which started in June. The content cost has been amortised but no revenue has been realised yet. However, we expect losses to narrow in 3Q13 before a profit is seen in 4Q13, driven by the full-quarter revenue recognition from Channel 6 with a better gross margin. Workpoint TV, too, should see better gross margins with cost savings of THB5m/month after replacing some programmes with reruns. Overall, we estimate 2013 satellite TV income to come in at THB300m (THB200m to be booked in 2H13).

Event revenues to also improve in 2H13. We expect revenue totalling THB300m from Thailand’s Got Talent, The Voice and Roi Mua Sang Muang shows to be booked in 2H13. Another approximately THB100m from at least five marketing events, including Wai Phra, Pook Pla, Pa Mae Tiew and Siam Street Fest, will also be recognised in 2H13.

Risks. Higher-than-expected costs and expenses, lower-than-expected marketing event income and the change of Channel 5 into a public TV station, which may reduce the number of broadcast slots for WORK. WORK – Summary Earnings Table FYE: Dec 31 (Btmn) 2010 2011 2012 2013F 2014F Revenue 1,292 1,835 2,136 2,488 2,838 EBITDA 330 538 598 680 826 Recurring Net Profit 187 327 404 391 502 Net profit 187 327 404 391 502 EPS (Bt) 0.93 1.31 1.57 1.52 1.95 EPS growth (%) 155.5 40.0 20.2 (3.4) 28.7 DPS (Bt) 0.57 1.00 1.40 1.00 1.10 PER 29.7 21.2 17.6 18.3 14.2 EV/EBITDA (x) 15.8 12.2 11.4 9.8 7.9 Div Yield (%) 2.1 3.6 5.0 3.6 4.0 P/BV(x) 5.2 5.9 5.3 4.5 3.9 Net Gearing (%) Net cash Net cash Net cash Net cash Net cash ROE (%) 17.6 28.3 31.0 25.6 28.3 ROA (%) 15.3 23.4 24.6 20.0 22.6 Consensus Net Profit (Btmn) - - - 568 641

Source: Company reports and MBKET estimates.

Buy (unchanged)

Share price: THB27.75 Target price: THB40.00 (from

THB54.50) Suttatip Peerasub Suttatip.P@maybank-ke.co.th (02) 658 6300

Stock Information

Description : The Company is in the entertainment industry

consisting of television shows, publishing, animations,

movies, concert and showbiz, and event marketing. WORK

was listed on the SET in September 2004. Ticker : WORK TB

Shares Issued (mn) : 257 Market Cap (US$mn): 230 3-mth Avg. Daily Turnover (US$mn): 0.31 SET Index: 1,338.13 Free float (%): 27.52 Major Shareholders : %

Prapas Cholsaranon 36.06

Panya Nirankul 35.80

Key Indicators

ROE – annualised (%) 25.6 Net cash (THBmn): Net cash NTA/shr (THB): 6.21 Interest cover (x): Net cash

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52-week High / Low THB64.25/THB25.25 1-mth 3-mth 6-mth 1-yrs Ytd Absolute (%) -30.2 -47.9 -49.1 -10.5 -39.0 Relative (%) -21.8 -38.0 -42.0 -18.3 -37.2

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

27 August 2013

Regional Daily

RESEARCH OFFICES REGIONAL

WONG Chew Hann, CA Regional Head, Institutional Research (603) 2297 8686 wchewh@maybank-ib.com

Alexander GARTHOFF Institutional Product Manager (852) 2268 0638 agarthoff@maybank-ke.com.sg

ONG Seng Yeow Regional Head, Retail Research (65) 6432 1453 ongsengyeow@maybank-ke.com.sg

ECONOMICS Suhaimi ILIAS Chief Economist Singapore | Malaysia (603) 2297 8682 suhaimi_ilias@maybank-ib.com

Luz LORENZO Philippines (63) 2 849 8836 luz_lorenzo@maybank-atrke.com

Tim LEELAHAPHAN Thailand (662) 658 1420 tim.l@maybank-ke.co.th

JUNIMAN Chief Economist, BII Indonesia (62) 21 29228888 ext 29682 Juniman@bankbii.com

Josua PARDEDE Economist / Industry Analyst, BII Indonesia (62) 21 29228888 ext 29695 JPardede@bankbii.com

MALAYSIA WONG Chew Hann, CA Head of Research (603) 2297 8686 wchewh@maybank-ib.com Strategy Construction & Infrastructure Desmond CH’NG, ACA (603) 2297 8680 desmond.chng@maybank-ib.com Banking - Regional LIAW Thong Jung (603) 2297 8688 tjliaw@maybank-ib.com Oil & Gas Automotive Shipping ONG Chee Ting, CA (603) 2297 8678 ct.ong@maybank-ib.com Plantations- Regional Mohshin AZIZ (603) 2297 8692 mohshin.aziz@maybank-ib.com Aviation – Regional Petrochem YIN Shao Yang, CPA (603) 2297 8916 samuel.y@maybank-ib.com Gaming – Regional Media TAN CHI WEI, CFA (603) 2297 8690 chiwei.t@maybank-ib.com Power Telcos WONG Wei Sum, CFA (603) 2297 8679 weisum@maybank-ib.com Property & REITs LEE Yen Ling (603) 2297 8691 lee.yl@maybank-ib.com Building Materials Manufacturing Technology

LEE Cheng Hooi Head of Retail chenghooi.lee@maybank-ib.com Technicals

HONG KONG / CHINA Alexander GARTHOFF Acting Head of Research (852) 2268 0638 agarthoff@maybank-ke.com.sg Alexander LATZER (852) 2268 0647 alexanderlatzer@kimeng.com.hk Metals & Mining - Regional Andy POON (852) 2268 0645 andypoon@kimeng.com.hk Telecom & equipment Ivan CHEUNG, CFA (852) 2268 0634 ivancheung@kimeng.com.hk Industrial Jacqueline KO, CFA (852) 2268 0633 jacquelineko@kimeng.com.hk Consumer Terence LOK (852) 2268 0630 terencelok@kimeng.com.hk Industrial Jeremy TAN (852) 2268 0635 jeremytan@kimeng.com.hk Gaming Karen KWAN (852) 2268 0640 karenkwan@kimeng.com.hk HK & China Property Philip TSE (852) 2268 0643 philiptse@kimeng.com.hk HK & China Property Warren LAU (852) 2268 0644 warrenlau@kimeng.com.hk Technology – Regional

INDIA Jigar SHAH Head of Research (91) 22 6623 2601 jigar@maybank-ke.co.in Oil & Gas Automobile Cement Anubhav GUPTA (91) 22 6623 2605 anubhav@maybank-ke.co.in Metal & Mining Capital goods Property Urmil SHAH (91) 22 6623 2606 urmil@maybank-ke.co.in Technology Media Varun VARMA (91) 226623 2611 varun@maybank-ke.co.in Banking

SINGAPORE Gregory YAP Head of Research (65) 6432 1450 gyap@maybank-ke.com.sg Technology & Manufacturing Telcos Wilson LIEW (65) 6432 1454 wilsonliew@maybank-ke.com.sg Property Developers James KOH (65) 6432 1431 jameskoh@maybank-ke.com.sg Consumer - Regional YEAK Chee Keong, CFA (65) 6432 1460 yeakcheekeong@maybank-ke.com.sg Offshore & Marine Alison FOK (65) 6432 1447 alisonfok@maybank-ke.com.sg Small & Mid Caps Construction ONG Kian Lin (65) 6432 1470 ongkianlin@maybank-ke.com.sg S-REITs Wei Bin (65) 6432 1455 weibin@maybank-ke.com.sg Commodity Logistics S-chips Derrick HENG (65) 6432 1446 derrickheng@maybank-ke.com.sg Transport (Land, Shipping & Aviation) John CHEONG (65) 6432 1461 johncheong@maybank-ke.com.sg Small & Mid Caps Healthcare

INDONESIA Lucky ARIESANDI, CFA (62) 21 2557 1127 lucky.ariesandi@maybank-ke.co.id Base metals Mining Oil & Gas Wholesale Pandu ANUGRAH (62) 21 2557 1137 pandu.anugrah@maybank-ke.co.id Automotive Heavy equipment Plantation Toll road Rahmi MARINA (62) 21 2557 1128 rahmi.marina@maybank-ke.co.id Banking Multifinance Adi N. WICAKSONO (62) 21 2557 1128 adi.wicaksono@maybank-ke.co.id Generalist Anthony YUNUS (62) 21 2557 1139 anthony.yunus@maybank-ke.co.id Cement Infrastructure Property

PHILIPPINES Luz LORENZO Head of Research (63) 2 849 8836 luz_lorenzo@maybank-atrke.com Strategy Laura DY-LIACCO (63) 2 849 8840 laura_dyliacco@maybank-atrke.com Utilities Conglomerates Telcos Lovell SARREAL (63) 2 849 8841 lovell_sarreal@maybank-atrke.com Consumer Media Cement Luz LORENZO / Mark RACE (63) 2 849 8844 mark_race@maybank-atrke.com Conglomerates Property Ports/ Logistics Gaming Katherine TAN (63) 2 849 8843 kat_tan@maybank-atrke.com Banks Construction Ramon ADVIENTO (63) 2 849 8845 ramon_adviento@maybank-atrke.com Mining

THAILAND Sukit UDOMSIRIKUL Head of Research (66) 2658 6300 ext 5090 Sukit.u@maybank-ke.co.th

Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 Maria.L@maybank-ke.co.th Consumer/ Big Caps

Andrew STOTZ Strategist (66) 2658 6300 ext 5091 Andrew@maybank-ke.co.th

Mayuree CHOWVIKRAN (66) 2658 6300 ext 1440 mayuree.c@maybank-ke.co.th Strategy Padon Vannarat (66) 2658 6300 ext 1450 Padon.v@maybank-ke.co.th Strategy Surachai PRAMUALCHAROENKIT (66) 2658 6300 ext 1470 Surachai.p@maybank-ke.co.th Auto Conmat Contractor Steel Suttatip PEERASUB (66) 2658 6300 ext 1430 suttatip.p@maybank-ke.co.th Media Commerce Sutthichai KUMWORACHAI (66) 2658 6300 ext 1400 sutthichai.k@maybank-ke.co.th Energy Petrochem Termporn TANTIVIVAT (66) 2658 6300 ext 1520 termporn.t@maybank-ke.co.th Property Woraphon WIROONSRI (66) 2658 6300 ext 1560 woraphon.w@maybank-ke.co.th Banking & Finance Jaroonpan WATTANAWONG (66) 2658 6300 ext 1404 jaroonpan.w@maybank-ke.co.th Transportation Small cap. Chatchai JINDARAT (66) 2658 6300 ext 1401 chatchai.j@maybank-ke.co.th Electronics Pongrat RATANATAVANANANDA (66) 2658 6300 ext 1398 pongrat.R@maybank-ke.co.th Services/ Small Caps

VIETNAM Michael KOKALARI, CFA Head of Research (84) 838 38 66 47 michael.kokalari@maybank-kimeng.com.vn Strategy Nguyen Thi Ngan Tuyen (84) 844 55 58 88 x 8081 tuyen.nguyen@maybank-kimeng.com.vn Food and Beverage Oil and Gas Hang Vu (84) 844 55 58 88 x 8087 hang.vu@maybank-kimeng.com.vn Banking Trinh Thi Ngoc Diep (84) 844 55 58 88 x 8242 diep.trinh@maybank-kimeng.com.vn Technology Utilities Construction Dang Thi Kim Thoa (84) 844 55 58 88 x 8083 thoa.dang@maybank-kimeng.com.vn Consumer Nguyen Trung Hoa +84 844 55 58 88 x 8088 hoa.nguyen@maybank-kimeng.com.vn Steel Sugar Resources

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

27 August 2013

Regional Daily

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES DISCLAIMERS This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns may be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report. The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees (collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.

This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.

MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent permitted by law, act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report.

This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect.

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. This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.

Malaysia Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis. Singapore

This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law. Thailand 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 may be changed after that date. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) does not confirm nor certify the accuracy of such survey result.

Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET. MBKET accepts no liability whatsoever for the actions of third parties in this respect.

US

This research report prepared by MKE is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the US. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant legislation and regulations.

UK This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

27 August 2013

Regional Daily

DISCLOSURES Legal Entities Disclosures Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim Eng Securities (“PTKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Maybank Kim Eng Securities JSC (License Number: 71/UBCK-GP) is licensed under the State Securities Commission of Vietnam. Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.

Disclosure of Interest Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies. Singapore: As of 27 August 2013, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report. Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report. Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission. As of 27 August 2013, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report. MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report.

OTHERS Analyst Certification of Independence The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.

Reminder Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE. Definition of Ratings Maybank Kim Eng Research uses the following rating system: BUY Return is expected to be above 10% in the next 12 months (excluding dividends) HOLD Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends) SELL Return is expected to be below -10% in the next 12 months (excluding dividends)

Applicability of Ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.

Some common terms abbreviated in this report (where they appear): Adex = Advertising Expenditure FCF = Free Cashflow PE = Price Earnings BV = Book Value FV = Fair Value PEG = PE Ratio To Growth CAGR = Compounded Annual Growth Rate FY = Financial Year PER = PE Ratio Capex = Capital Expenditure FYE = Financial Year End QoQ = Quarter-On-Quarter CY = Calendar Year MoM = Month-On-Month ROA = Return On Asset DCF = Discounted Cashflow NAV = Net Asset Value ROE = Return On Equity DPS = Dividend Per Share

NTA = Net Tangible Asset ROSF = Return On Shareholders’ Funds EBIT = Earnings Before Interest And Tax P = Price WACC = Weighted Average Cost Of Capital EBITDA = EBIT, Depreciation And Amortisation P.A. = Per Annum YoY = Year-On-Year EPS = Earnings Per Share PAT = Profit After Tax YTD = Year-To-Date EV = Enterprise Value PBT = Profit Before Tax

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.

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Regional Daily

Malaysia Maybank Investment Bank Berhad (A Participating Organisation of Bursa Malaysia Securities Berhad) 33rd Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur Tel: (603) 2059 1888; Fax: (603) 2078 4194

Singapore Maybank Kim Eng Securities Pte Ltd Maybank Kim Eng Research Pte Ltd 9 Temasek Boulevard #39-00 Suntec Tower 2 Singapore 038989 Tel: (65) 6336 9090 Fax: (65) 6339 6003

London Maybank Kim Eng Securities (London) Ltd 6/F, 20 St. Dunstan’s Hill London EC3R 8HY, UK Tel: (44) 20 7621 9298 Dealers’ Tel: (44) 20 7626 2828 Fax: (44) 20 7283 6674

New York Maybank Kim Eng Securities USA Inc 777 Third Avenue, 21st Floor New York, NY 10017, U.S.A. Tel: (212) 688 8886 Fax: (212) 688 3500

Stockbroking Business: Level 8, Tower C, Dataran Maybank, No.1, Jalan Maarof 59000 Kuala Lumpur Tel: (603) 2297 8888 Fax: (603) 2282 5136

Hong Kong Kim Eng Securities (HK) Ltd Level 30, Three Pacific Place, 1 Queen’s Road East, Hong Kong Tel: (852) 2268 0800 Fax: (852) 2877 0104

Indonesia PT Kim Eng Securities Plaza Bapindo Citibank Tower 17th Floor Jl Jend. Sudirman Kav. 54-55 Jakarta 12190, Indonesia

Tel: (62) 21 2557 1188 Fax: (62) 21 2557 1189

India Kim Eng Securities India Pvt Ltd 2nd Floor, The International 16, Maharishi Karve Road, Churchgate Station, Mumbai City - 400 020, India Tel: (91).22.6623.2600 Fax: (91).22.6623.2604

Philippines Maybank ATR Kim Eng Securities Inc. 17/F, Tower One & Exchange Plaza Ayala Triangle, Ayala Avenue Makati City, Philippines 1200 Tel: (63) 2 849 8888 Fax: (63) 2 848 5738

Thailand Maybank Kim Eng Securities (Thailand) Public Company Limited 999/9 The Offices at Central World, 20th - 21st Floor, Rama 1 Road Pathumwan, Bangkok 10330, Thailand Tel: (66) 2 658 6817 (sales) Tel: (66) 2 658 6801 (research)

Vietnam In association with Maybank Kim Eng Securities JSC 1st Floor, 255 Tran Hung Dao St. District 1 Ho Chi Minh City, Vietnam Tel : (84) 844 555 888 Fax : (84) 838 38 66 39

Saudi Arabia In association with Anfaal Capital Villa 47, Tujjar Jeddah Prince Mohammed bin Abdulaziz Street P.O. Box 126575 Jeddah 21352 Tel: (966) 2 6068686 Fax: (966) 26068787

South Asia Sales Trading Kevin FOY kevinfoy@maybank-ke.com.sg Tel: (65) 6336-5157 US Toll Free: 1-866-406-7447

North Asia Sales Trading Eddie LAU eddielau@kimeng.com.hk Tel: (852) 2268 0800 US Toll Free: 1 866 598 2267

www.maybank-ke.com | www.maybank-keresearch.com

foosuanyee@imci.sg FooSuan Yee 05/23/14 06:02:21 AM IMC INVESTMENTS PTE. LTD.