7 october 2013 gaming - i3investor...2013/10/07 · magnum by 7-8%. nfos can respond to a gaming...

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

17 October 2011

PP16832/01/2012 (029059)

Sector Update 7 October 2013

PP16832/01/2013 (031128)

Page 1 of 2

Malaysia

Gaming Weighing The Odds Of Gaming Tax Hikes

Maintain OVERWEIGHT on casinos, NEUTRAL on NFOs. We revisit

the impact of a potential hike in indirect gaming sector taxes in light of a

hefty 14% rise in tobacco excise duty effective 30 Sep 2013. Gaming

tax hikes have thus far never been announced during National Budgets.

We take the view that increases in gaming taxes are unlikely for both

casinos and NFOs due to competition from regional peers and illegal

operators. There is no change in our earnings estimates and TPs. Our

BUYs in the sector remain GENM and GENT. Casinos have historically

been better able to cope with gaming tax rate hikes than NFOs.

Previous hikes had a short-term negative impact on GENM... In

1998, the casino tax rate was raised from a progressive scale of 22-

25% of gross gaming revenue (GGR) to the current flat rate of 25%. In

1999, revenue at Resorts World Genting (RWG) fell 11% YoY, but this

was exacerbated by the Asian Financial Crisis then. RWG’s revenue

resumed growing thereafter as the opening of First World Hotel more

than doubled room inventory.

…but a longer-term impact on NFOs. In response to the 1-ppt

gaming tax and 3-ppt pool betting duty (PBD) rate hikes in late 1998,

4D first prizes were reduced by MYR200/MYR1 bet in Apr 1999. This

caused industry gross NFO revenue to contract at a CAGR of 2% over

1998-2002. Only after 4D first prizes were raised by MYR500/MYR1 bet

in Jan 2003 did industry gross NFO revenue resume growing.

Mild earnings impact to casinos. Every 1ppt hike in casino tax rates

will see our EPS estimates for GENM and GENT decline by 2% and 1%

respectively. GENM can respond to higher casino taxes by cutting

commissions, rebates and allowances but risks slower GGR growth if it

does. Every 1ppt cut in our GGR growth assumption of 4% p.a. sees

our EPS estimates for GENM and GENT fall 1% and 0.5% respectively.

Earnings impact to NFOs more severe. We estimate that every 1ppt

hike in either gaming tax or PBD rates will lower our EPS forecasts for

Magnum by 7-8%. NFOs can respond to a gaming tax or PBD rate hike

by cutting prizes, but risk losing market share to illegal NFOs if they do.

We estimate that every 1ppt cut in our NFO revenue growth assumption

of 2.5% p.a. will trim our EPS estimates for Magnum by 1%.

Prefer casinos over NFOs. As casino companies GENM and GENT

are less sensitive to higher gaming taxes than NFOs, we prefer the

former. GENM and GENT can also manage any casino tax hike by

growing revenues and earnings via more hotel rooms. Recall that

GENM will add >2,000 rooms or +20% to its current room inventory by

end-2015. Maintain Overweight on casinos and Neutral on NFOs.

Table 1: Malaysian gaming sector summary table Source: Maybank KE

Stock Ticker Rec Shr px Mkt cap TP PER (x) EV/EBITDA (x) P/B (x) ROAE (%) Div yld

MYRb CY13E CY13E CY13E CY14E CY13E CY14E CY13E CY14E CY13E CY14E

Genting M’sia GENM MK BUY 4.33 24.6 4.85 15.4 14.3 8.2 7.3 1.7 1.6 11.6 11.4 1.5 1.6

Genting GENT MK BUY 10.44 38.6 10.65 18.2 16.0 8.0 7.2 1.7 1.6 9.6 10.3 3.9 0.6

Magnum MAG MK HOLD 3.21 4.6 3.31 14.8 14.2 10.2 9.8 1.3 1.3 9.0 9.2 5.4 5.6

Casinos

Overweight (unchanged)

NFOs Neutral (unchanged) Yin Shao Yang [email protected] (603) 2297 8916

mailto:[email protected]

7 October 2013 Page 2 of 12

Gaming 17 October 2011

Page 1 of 2

Casinos

Casino tax rate hikes have never been announced during Budgets.

Malaysia’s sole casino, Resorts World Genting (RWG), is presently

levied a casino tax rate of 25% on gross gaming revenue (GGR). In

2012, we estimate that RWG contributed MYR1.2b in casino tax to the

government. The last time the casino tax rate was raised was in 1998

(from a progressive scale of 22-25% of GGR to the current flat 25%), a

change that was not announced during the Budget.

Malaysian casino tax rate already high. Only Macau casinos have

higher casino tax rates but even they are exempted from paying

corporate taxes, currently levied at a rate of 12%. Should casino tax

rates in Malaysia be raised, RWG will have to cut commissions, rebates

and promotional allowances to maintain margins. Consequently, we

believe that GGR will fall as VIPs will likely travel overseas to casinos

which offer better incentives. The incremental casino tax revenues will

likely be minimal. Already, RWG’s YoY revenue growth over the last

four years has slowed to single digits in percentage terms (Chart 2).

Chart 1: Tax rates of selected Asian casino jurisdictions

39%

25%

11%

15%

39%

25%

21%

25%

12%

25%

17%

30%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Macau Malaysia Singapore Philippines

VIP Mass market Corporate

a) Macau casinos are currently exempted from paying corporate tax, (corporate tax rate: 12%)

b) Another tax of 2% of GGR is levied on GGR of non-junket VIP tables in the Philippines

c) Philippine casinos are currently exempted from paying corporate taxes

Source: DICJ, Inland Revenue Authority of Singapore, Ministry of Finance, PAGCOR

Table 1: Commission/rebate rates of selected Asian casino jurisdictions

Country Type As % of VIP volume

Malaysia Junket commission 1.25%

Malaysia Direct rebate 1.00%

Macau Junket commission 1.25%

Singapore Direct rebate 1.30%

Philippines Junket commission – foreigners 1.40-1.50%

Philippines Junket commission – locals 1.25%

Source: GENM, DICJ, Las Vegas Sands, PAGCOR

In our view, a hike in casino taxes is unlikely in the near term.

Nonetheless, we estimate that every 1ppt increase in the casino tax

rate will trim our EPS estimates for GENM and GENT by 2% and 1%

respectively. Should GENM respond to a casino tax rate hike by cutting

commissions, rebates and promotional allowances, we estimate that

every 1ppt decrease in our GGR growth assumption of 4% p.a. will trim

our EPS estimates for GENM and GENT by 1% and 0.5% respectively.

Snapshots of casino tax categories

Tax Category Rate

Casino 25% of gross gaming revenue

Source: Ministry of Finance



Page 1 of 2

Chart 2: RWG revenue chg YoY

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Source: GENM

Possibility of higher casino tax revenues without raising casino

tax rates. Even without a casino tax rate hike, the incremental revenue

(gaming and non-gaming) created from the new >2,000-room hotel at

RWG (+20% to current room inventory by late 2015) will create

additional revenues for the Malaysian government. Historically, there is

a strong correlation between room inventory and revenue at RWG

(Chart 3). Therefore, we do not rule out the possibility that GENM will

be exempted from both a casino tax hike and even GST, which could

be introduced in 2015.

Chart 3: RWG revenue vs room inventory

-

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0

12,000.0

-

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Revenue (LHS) Rooms (RHS)

Source: GENM

GENM and GENT still our top picks. We maintain our BUY call and

MYR4.85 DCF-based TP on GENM. We are positive on its new >2,000-

room hotel. Should RWG’s revenue grow by 20% (i.e. similar to the

increase in the number of rooms), we estimate that GENM’s revenue

and EBITDA would grow by 14% and 17% respectively. GENM will

announce another c.MYR2b in investments going forward. We also

maintain our BUY call and MYR10.65 SOP-based TP on GENT. GENT

has in Aug 2013 announced a non-renounceable restricted issue of

warrants on the basis of one warrant at MYR1.50 for every four shares.

The warrants exercise price is MYR7.96 and if fully exercised, GENT’s

cash pile will increase by MYR7.4b. This will pave the way for GENT to

embark on M&As on its own, rather than via its subsidiaries.

First World Hotel I

SARS

First World Hotel II

GFC

Singapore IRs opened



Page 1 of 2

NFO

NFOs contribute c.18% of their sales to statutory taxes and duties.

NFOs are presently levied a variety of statutory taxes and duties

(gaming tax, pool betting duty (PBD), government contributions on

special draws and National Sports Council (NSC) contributions). In

2012, we estimate that NFOs contributed MYR1.6b in statutory taxes

and duties. The last time statutory taxes/duties were raised was in Jun

2010 when the PBD was raised from 6% to 8% of net sales, again, a

change that was not announced during the Budget.

Table 2: Change in NFO statutory tax and duty rates since 1995

Date Event

Oct-98 Gaming tax raised to 8% from 7%

Nov-98 PBD raised to 10% from 7% for Sports Toto Malaysia and Da Ma Cai

Sep-01 Da Ma Cai's betting and sweepstake duty cut to 4% from 10%

Jan-02 Sports Toto Malaysia’s royalty cut to 1.5% from 3%

Dec-02 PBD standardised at 6% (Magnum: 11.5% to 6%, Da Ma Cai: 4% to 6%,

Sports Toto Malaysia: 10% to 6%). Magnum and Da Ma Cai levied 10%

on pre-tax profit. Sports Toto Malaysia royalty of 1.5% abolished

Jun-10 PBD raised to 8% from 6%


Revenue contracted when statutory tax and duty rates were

raised… Industry gross NFO revenue contracted at a 2% CAGR over

1998-2002 after the 4D first prizes were reduced by MYR200/MYR1 bet

in Apr 1999 in response to the 1-ppt gaming tax and 3-ppt PBD rate

hike in late 1998. Industry gross NFO revenue contracted by a lower

1% CAGR over 2010-12 after the 4D Big Special Prize was reduced by

MYR20/MYR1 bet in Dec 2010 in response to the 2-ppt PBD rate hike

in Jun 2010.

…and grew when statutory tax and duty rates were cut. Smaller

prizes discourage punters from betting with the legal NFOs. Illegal

NFOs offer better prizes as they do not pay taxes. Conversely, when

the 4D first prizes were raised by MYR500/MYR1 bet in Jan 2003 in

response to the standardising of the PBD rate at a lower 6% of net

sales (except Da Ma Cai whose PBD rate until then was 4%), industry

gross NFO revenue resumed growing.

Chart 4: Industry gross NFO revenue* (MYRb)

6.9 6.7 6.7 6.5 6.3 6.8

7.4 7.9

8.3 8.6 8.8 9.0 9.1 9.0 8.9

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

* excludes state NFOs (i.e. Lotteries 88, Sandakan Turf Club and Cash Sweep), STM and Pan Malaysian Pools figures annualised

Source: Sports Toto Malaysia (STM), Multi-Purpose Holdings, Pan Malaysian Pools

Snapshots of NFO tax categories

Tax Category Rate

Gaming 8% of gross sales

Pool Betting Duty 8% of net sales (gross sales –

gaming tax)

Govt. contributions 10% of net sales from special

draws

NSC contributions 10% of prê-tax profit


4D 1st prizes cut 4D Big Special

Prize cut

4D 1st prizes raised, rapid game innovaion



Page 1 of 2

In our view, a hike in gaming tax or PBD rates is unlikely in the

near term. Nonetheless, we estimate that every 1ppt increase in either

the gaming tax or PBD rates will trim our EPS estimates for Magnum by

7-8%. Should NFOs respond to a gaming tax or PBD rate hike by

cutting prizes, we estimate that every 1ppt decrease in our NFO

revenue growth assumption of 2.5% p.a. will trim our EPS estimates for

Magnum by 1%.

Possibility of higher revenues from statutory taxes and duties

without raising rates. Industry gross NFO revenue grew by a healthy

4.5% CAGR over 2002-10 due to rapid game innovation during this

period. New games encourage more visits to sales outlets due to their

novelty factor. The Ministry of Finance may also award more special

draws to raise revenues, as the NFOs are levied another 10% of net

sales as government contributions.

Table 3: Games introduced since 2000

Date NFO Game Comments

Dec 2003 Da Ma Cai IBOX 4D permutation game

Sep 2005 STM i-PERM 4D permutation game

Jan 2006 Magnum 4D 4D MBox 4D permutation game

Jun 2007 STM Mega Toto 6/52 Replaced Toto 4/49

Sep 2009 Magnum 4D 4D Jackpot

Oct 2009 STM Power Toto 6/55 Replaced Toto 6/42

Mar 2010 STM Supreme Toto 6/58 Replaced Super Toto 6/49

Jun 2011 STM 4D Toto Jackpot

Jun 2012 STM Mega Toto 6/52 Jackpot 2 Only one jackpot previously

Jul 2012 Da Ma Cai 6D Jackpot

Nov 2012 Da Ma Cai 1+3D Jackpot

Mar 2013 Da Ma Cai 3D Jackpot Replaced 6D Jackpot

Source: STM, Multi-Purpose Holdings (Magnum 4D), Pan Malaysian Pools (Da Ma Cai)

Chart 5: Number of special draws

2

8

6 5

7

9 9

16

14

11

7

17

20 20

22 22

-

5

10

15

20

25

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: MOF

Magnum still a HOLD. At 14x FY14 PER, we believe that Magnum is

currently fairly valued. The resilient nature of its NFO business and

yields of >5% p.a. on an 80% dividend payout ratio should limit

downside risk to its share price. We maintain our HOLD call and

MYR3.31 DCF-based TP.



Page 1 of 2

VALUATION AND FINANCIALS: GENM

Chart 6: GENM rolling 1-year forward PER Chart 7: GENM rolling 1-year forward P/BV

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Jan-9

8

Jan-9

9

Jan-0

0

Jan-0

1

Jan-0

2

Jan-0

3

Jan-0

4

Jan-0

5

Ja

n-0

6

Ja

n-0

7

Ja

n-0

8

Ja

n-0

9

Ja

n-1

0

Ja

n-1

1

Jan-1

2

Jan-1

3

-1 SD: 8.1x

+1 SD: 18.3x

Mean: 13.2x

-

1.0

2.0

3.0

4.0

5.0

6.0

Ja

n-9

8

Jan-9

9

Jan-0

0

Ja

n-0

1

Jan-0

2

Jan-0

3

Ja

n-0

4

Jan-0

5

Jan-0

6

Ja

n-0

7

Jan-0

8

Jan-0

9

Ja

n-1

0

Jan-1

1

Jan-1

2

Ja

n-1

3

+1 SD: 2.5x

Mean: 1.9x

-1 SD: 1.2x

Source: Maybank KE, Bloomberg Source: Maybank KE, Bloomberg

INCOME STATEMENT (MYR m) BALANCE SHEET (MYR m)

FY Dec 2012A 2013F 2014F 2015F FY Dec 2012A 2013F 2014F 2015F

Revenue 7,892.9 8,303.3 8,668.0 9,432.0 Fixed Assets 6,786.3 7,425.9 7,650.9 7,718.2

EBITDA 2,478.4 2,639.8 2,820.0 3,000.3 Other LT Assets 5,574.0 5,574.0 5,574.0 5,574.0

Depreciation & Amortisation (516.6) (544.9) (574.9) (628.5) Cash/ST Investments 3,231.6 3,694.9 4,615.0 5,814.8

Operating Profit (EBIT) 1,961.8 2,094.9 2,245.2 2,371.8 Other Current Assets 1,271.5 1,296.0 1,317.8 1,363.4

Interest (Exp)/Inc 56.6 71.2 79.0 87.0 Total Assets 16,863.4 17,990.8 19,157.6 20,470.4

Associates 1.3 - - - One-offs (202.5) - - - ST Debt 216.8 193.0 234.0 234.0

Pre-Tax Profit 1,817.2 2,166.1 2,324.2 2,458.8 Other Current Liabilities 1,654.8 1,753.6 1,810.6 1,975.4

Tax (414.7) (569.1) (603.1) (633.1) LT Debt 894.9 701.9 467.9 234.0

Minority Interest - (3.3) (6.7) (6.9) Other LT Liabilities 940.3 940.3 940.3 940.3

Net Profit 1,402.5 1,593.8 1,714.3 1,818.8 Minority Interest - 40.5 47.1 54.0

Recurring Net Profit 1,605.0 1,593.8 1,714.3 1,818.8 Shareholders' Equity 13,156.6 14,361.6 15,657.7 17,032.8

Total Liabilities-Capital 16,863.4 17,990.8 19,157.6 20,470.4 Revenue Growth % (7.1) 5.2 4.4 8.8 EBITDA Growth (%) 6.1 6.5 6.8 6.4 Share Capital (m) 5,672.4 5,672.4 5,672.4 5,672.4

EBIT Growth (%) (0.4) 6.8 7.2 5.6 Gross Debt/(Cash) 1,111.7 894.9 701.9 467.9

Net Profit Growth (%) (1.8) 13.6 7.6 6.1 Net Debt/(Cash) (2,119.9) (2,800.0) (3,913.1) (5,346.8)

Recurring Net Profit Growth (%) 2.5 (0.7) 7.6 6.1 Working Capital 2,631.5 3,044.3 3,888.2 4,968.8

Tax Rate % 22.8 26.3 26.0 25.7

CASH FLOW (MYR m) RATES & RATIOS


Profit before taxation 1,817.2 2,166.1 2,324.2 2,458.8 EBITDA Margin % 31.4 31.8 32.5 31.8

Depreciation 516.6 544.9 574.9 628.5 Op. Profit Margin % 24.9 25.2 25.9 25.1

Net interest receipts/(payments) (56.6) (71.2) (79.0) (87.0) Net Profit Margin % 17.8 19.2 19.8 19.3

Working capital change (87.0) 43.2 28.4 113.1 ROE % 12.8 11.6 11.4 11.1

Cash tax paid (493.6) (538.0) (596.3) (627.1) ROA % 9.6 9.1 9.2 9.2

Others (incl'd exceptional items) 232.7 - - - Net Margin Ex. El % 20.3 19.2 19.8 19.3

Cash flow from operations 1,929.3 2,145.0 2,252.1 2,486.3 Dividend Cover (x) 4.3 4.3 4.3 4.3

Capex (643.1) (1,147.3) (799.8) (695.8) Interest Cover (x) Cash Cash Cash Cash

Disposal/(purchase) 115.1 - - - Asset Turnover (x) 0.5 0.5 0.5 0.5

Others 80.0 99.3 101.3 103.4 Asset/Debt (x) 15.2 20.1 27.3 43.7

Cash flow from investing (448.0) (1,047.9) (698.5) (592.4) Debtors Turn (days) 18.2 18.2 18.2 18.2

Debt raised/(repaid) (53.9) (216.8) (193.0) (234.0) Creditors Turn (days) 99.3 99.3 99.3 99.3

Equity raised/(repaid) 26.1 - - - Inventory Turn (days) 3.6 3.6 3.6 3.6

Dividends (paid) (365.8) (388.8) (418.2) (443.7) Net Gearing % Cash Cash Cash Cash

Interest payments (29.7) (28.1) (22.4) (16.4) Debt/ EBITDA (x) 0.4 0.3 0.2 0.2

Others 27.0 - - - Debt/ Market Cap (x) 0.0 0.0 0.0 0.0

Cash flow from financing (396.3) (633.7) (633.6) (694.1)

Change in cash 1,085.0 463.3 920.1 1,199.8

Source: GENM, Maybank KE



Page 1 of 2

VALUATION AND FINANCIALS: GENT

Chart 8: GENT historical premium/(discount) to SOP/sh Chart 9: GENT rolling 1-year forward PER

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

De

c-9

7

De

c-9

8

De

c-9

9

De

c-0

0

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

De

c-0

6

De

c-0

7

De

c-0

8

De

c-0

9

De

c-1

0

De

c-1

1

De

c-1

2

Mean: -21.1%

+1 SD: -9.0%

-1 SD: -33.2%

-

5.0

10.0

15.0

20.0

25.0

30.0

Jan

-98

Sep-9

8

May-9

9

Jan

-00

Sep-0

0

Ma

y-0

1

Ja

n-0

2

Sep-0

2

May-0

3

Jan

-04

Sep-0

4

Ma

y-0

5

Ja

n-0

6

Sep-0

6

May-0

7

Jan

-08

Sep-0

8

May-0

9

Ja

n-1

0

Se

p-1

0

May-1

1

Jan

-12

Sep-1

2

May-1

3

Mean: 12.3x

-1 SD: 8.6x

+1 SD: 16.1x

Source: Maybank KE, Bloomberg Source: Maybank KE, Bloomberg


FY Dec 2012A 2013F 2014F 2015F FY Dec 2012A 2013F 2014F 2015F Revenue 17,258.5 18,140.5 19,091.4 20,384.2 Fixed Assets 26,379.8 29,322.8 29,970.3 30,800.2

EBITDA 6,970.0 7,053.8 7,642.1 8,086.0 Other LT Assets 10,332.4 10,369.7 10,408.1 10,447.6

Depreciation & Amortisation (1,635.9) (1,738.8) (1,769.8) (1,824.4) Cash/ST Investments 21,697.3 21,426.8 21,783.0 23,005.3

Operating Profit (EBIT) 5,334.1 5,315.0 5,872.3 6,261.6 Other Current Assets 7,205.8 7,283.9 7,496.1 7,784.7

Interest (Exp)/Inc (237.1) (243.1) (197.5) (111.8) Total Assets 65,615.3 68,403.1 69,657.5 72,037.9

Associates 36.2 37.3 38.4 39.6 One-offs (266.5) - - - ST Debt 1,891.9 2,563.8 1,956.0 1,956.0

Pre-Tax Profit 4,866.7 5,109.2 5,713.1 6,189.3 Other Current Liabilities 4,477.6 5,021.4 5,225.3 5,606.5

Tax (1,144.0) (964.3) (1,074.9) (1,153.4) LT Debt 12,701.2 12,400.4 10,444.4 8,488.3

Discontinued operations 2,064.6 - - - Other LT Liabilities 2,076.0 2,076.0 2,076.0 2,076.0

Minority Interest (1,571.4) (1,730.0) (1,927.4) (2,087.4) Perpetual capital securities 5,789.5 5,789.5 5,789.5 5,789.5

Perpetual capital securities (232.4) (296.7) (296.7) (296.7) Minority Interest 16,979.4 18,254.2 19,677.5 21,226.1

Net Profit 3,983.5 2,118.2 2,414.1 2,651.8 Shareholders' Equity 21,699.7 22,297.8 24,488.8 26,895.5

Recurring Net Profit 2,326.6 2,118.2 2,414.1 2,651.8 Total Liabilities-Capital 65,615.3 68,403.1 69,657.5 72,037.9

Revenue Growth % (7.1) 5.1 5.2 6.8 Share Capital (m) 3,694.6 3,694.6 3,694.6 3,694.6

EBITDA Growth (%) (8.7) 1.2 8.3 5.8 Gross Debt/(Cash) 20,382.6 20,753.7 18,189.9 16,233.9

EBIT Growth (%) (16.1) (0.4) 10.5 6.6 Net Debt/(Cash) (1,314.7) (673.1) (3,593.1) (6,771.4)

Net Profit Growth (%) 38.9 (46.8) 14.0 9.8 Working Capital 22,533.6 21,125.4 22,097.8 23,227.5

Recurring Net Profit Growth (%) (6.4) (9.0) 14.0 9.8

Tax Rate % 23.5 18.9 18.8 18.6


FY Dec 2012A 2013F 2014F 2015F FY Dec 2012A 2013F 2014F 2015F Profit before taxation 4,866.7 5,109.2 5,713.1 6,189.3 EBITDA Margin % 40.4 38.9 40.0 39.7

Depreciation 1,710.2 1,738.8 1,769.8 1,824.4 Op. Profit Margin % 30.9 29.3 30.8 30.7

Net interest receipts/(payments) 187.9 243.1 197.5 111.8 Net Profit Margin % 23.1 11.7 12.6 13.0

Working capital change (1,290.9) 561.5 (67.3) 50.8 ROE % 11.8 9.6 10.3 10.3

Cash tax paid (987.2) (1,060.0) (1,016.0) (1,111.6) ROA % 3.9 3.2 3.5 3.7

Others (incl'd exceptional items) 818.3 (37.3) (38.4) (39.6) Net Margin Ex. El % 13.5 11.7 12.6 13.0

Cash flow from operations 5,305.0 6,555.3 6,558.8 7,025.2 Dividend Cover (x) 10.5 1.4 10.9 10.9

Capex (3,017.5) (4,681.8) (2,417.3) (2,654.4) Interest Cover (x) 22.5 21.9 29.7 56.0

Disposal/(purchase) (141.5) - - - Asset Turnover (x) 0.3 0.3 0.3 0.3

Others 336.7 264.1 272.0 280.2 Asset/Debt (x) 3.2 3.3 3.8 4.4

Cash flow from investing (2,822.3) (4,417.7) (2,145.3) (2,374.2) Debtors Turn (days) 71.4 71.4 71.4 71.4

Debt raised/(repaid) 888.1 371.1 (2,563.8) (1,956.0) Creditors Turn (days) 134.2 145.9 145.9 145.9

Perpetual securities raised/(repaid) 5,705.9 - - - Inventory Turn (days) 10.1 10.1 10.1 10.1

Equity raised/(repaid) 10.2 - - - Net Gearing % Cash Cash Cash Cash

Dividends (paid) (221.7) (1,520.1) (223.1) (245.1) Debt/ EBITDA (x) 2.9 2.9 2.4 2.0 Dividends paid to minority shareholders

(468.2) (455.2) (504.0) (538.8) Debt/ Market Cap (x) 0.5 0.5 0.5 0.4

Interest payments (459.0) (507.2) (469.6) (392.0)

Perpetual securities distribution (148.8) (296.7) (296.7) (296.7)

Others 13.7 - - - Cash flow from financing 5,320.2 (2,408.1) (4,057.2) (3,428.7) Change in cash 7,802.9 (270.5) 356.2 1,222.3

Source: GENT, Maybank KE



Page 1 of 2

VALUATION AND FINANCIALS: MAGNUM



Revenue 3,412.7 3,128.0 3,206.2 3,286.3 Fixed Assets 721.2 727.6 733.6 739.2

EBITDA 480.4 491.0 503.7 516.6 Other LT Assets 3,512.9 3,512.9 3,512.9 3,512.9

Depreciation & Amortisation (21.7) (8.6) (9.0) (9.5) Cash/ST Investments 631.5 726.7 789.6 854.8

Operating Profit (EBIT) 458.7 482.4 494.6 507.1 Other Current Assets 1,189.6 841.9 848.1 854.5

Interest (Exp)/Inc (98.5) (70.5) (65.1) (65.1) Total Assets 6,055.3 5,809.1 5,884.2 5,961.3

Associates 3.8 - - - One-offs 43.3 - - - ST Debt 187.1 - - -

Pre-Tax Profit 407.3 412.0 429.5 442.0 Other Current Liabilities 539.9 419.0 429.7 440.4

Tax (72.1) (103.0) (107.4) (110.5) LT Debt 1,130.4 1,130.4 1,130.4 1,130.4

Discontinued operations 6.5 - - - Other LT Liabilities 758.7 758.7 758.7 758.7

Minority Interest 2.1 - - - Minority Interest 27.2 27.2 27.2 27.2

Net Profit 343.8 309.0 322.2 331.5 Shareholders' Equity 3,412.0 3,473.8 3,538.3 3,604.6

Recurring Net Profit 300.5 309.0 322.2 331.5 Total Liabilities-Capital 6,055.3 5,809.1 5,884.2 5,961.3

Revenue Growth % -3.2% -8.3% 2.5% 2.5% Share Capital (m) 1,427.3 1,427.3 1,427.3 1,427.3

EBITDA Growth (%) -24.0% 2.2% 2.6% 2.6% Gross Debt/(Cash) 1,317.5 1,130.4 1,130.4 1,130.4

EBIT Growth (%) -24.4% 5.2% 2.5% 2.5% Net Debt/(Cash) 685.9 403.7 340.8 275.6

Net Profit Growth (%) -28.3% -10.1% 4.3% 2.9% Working Capital 1,094.2 1,149.6 1,208.0 1,268.8

Recurring Net Profit Growth (%) 1.4% 2.8% 4.3% 2.9%

Tax Rate % 17.7% 25.0% 25.0% 25.0%



Profit before taxation 407.3 412.0 429.5 442.0 EBITDA Margin % 14.1 15.7 15.7 15.7

Depreciation 21.7 8.6 9.0 9.5 Op. Profit Margin % 13.4 15.4 15.4 15.4

Net interest receipts/(payments) 48.7 70.5 65.1 65.1 Net Profit Margin % 10.1 9.9 10.0 10.1

Working capital change 114.8 (22.6) 3.8 3.9 ROE % 9.0 9.0 9.2 9.3

Cash tax paid (92.2) (98.3) (106.7) (110.0) ROA % 4.7 5.2 5.5 5.6

Others (incl'd exceptional items) (13.4) - - - Net Margin Ex. El % 8.8 9.9 10.0 10.1

Cash flow from operations 486.8 370.2 400.8 410.5 Dividend Cover (x) 1.7 1.3 1.3 1.3

Capex (77.7) (15.0) (15.0) (15.0) Interest Cover (x) 4.7 6.8 7.6 7.8

Disposal/(purchase) 238.4 244.7 - - Asset Turnover (x) 0.6 0.5 0.5 0.6

Others (20.7) (70.5) (65.1) (65.1) Asset/Debt (x) 4.6 5.1 5.2 5.3

Cash flow from investing 140.0 159.3 (80.1) (80.1) Debtors Turn (days) 28.8 28.8 28.8 28.8

Debt raised/(repaid) (800.5) (187.1) - - Creditors Turn (days) 55.8 55.8 55.8 55.8

Equity raised/(repaid) - - - - Inventory Turn (days) 0.2 0.2 0.2 0.2

Dividends (paid) (172.2) (247.2) (257.7) (265.2) Net Gearing % 20.1 11.6 9.6 7.6

Others - - - - Debt/ EBITDA (x) 2.7 2.3 2.2 2.2

Cash flow from financing (972.7) (434.3) (257.7) (265.2) Debt/ Market Cap (x) 0.3 0.2 0.2 0.2

Change in cash (345.9) 95.1 63.0 65.2

Source: Magnum, Maybank KE



Page 1 of 2

RESEARCH OFFICES REGIONAL

WONG Chew Hann, CA

Regional Head, Institutional Research (603) 2297 8686 [email protected]

Alexander GARTHOFF Institutional Product Manager (852) 2268 0638 [email protected]

ONG Seng Yeow

Regional Head, Retail Research (65) 6432 1453 [email protected]

ECONOMICS Suhaimi ILIAS

Chief Economist Singapore | Malaysia (603) 2297 8682 [email protected]

Luz LORENZO

Philippines (63) 2 849 8836 [email protected]

Tim LEELAHAPHAN Thailand (662) 658 1420 [email protected]

JUNIMAN

Chief Economist, BII Indonesia (62) 21 29228888 ext 29682 [email protected] Josua PARDEDE

Economist / Industry Analyst, BII Indonesia (62) 21 29228888 ext 29695 [email protected]

MALAYSIA WONG CHEW HANN, CA Head of Research

(603) 2297 8686 [email protected] Strategy DESMOND CH’NG, ACA

(603) 2297 8680 [email protected] Banking & Finance LIAW THONG JUNG

(603) 2297 8688 [email protected] Oil & Gas – Regional

Shipping ONG CHEE TING, CA

(603) 2297 8678 [email protected] Plantations – Regional MOHSHIN AZIZ

(603) 2297 8692 [email protected] Aviation – Regional Petrochem YIN SHAO YANG, CPA

(603) 2297 8916 [email protected] Gaming – Regional Media TAN CHI WEI, CFA

(603) 2297 8690 [email protected] Power Telcos WONG WEI SUM, CFA

(603) 2297 8679 [email protected] Property & REITs LEE YEN LING

(603) 2297 8691 [email protected] Building Materials Glove producers

CHAI LI SHIN

(603) 2297 8684 [email protected] Plantation Construction & Infrastructure KANG CHUN EE (603) 2297 8675 [email protected] Consumer IVAN YAP

(603) 2297 8612 [email protected] Automotive LEE Cheng Hooi, Regional Chartist

(603) 2297 8694 [email protected] Tee Sze Chiah, Head of Retail Research

(603) 2297 6858 [email protected]

HONG KONG / CHINA Howard WONG Head of Research 852) 2268 0648 [email protected] Oil & Gas - Regional Alexander LATZER (852) 2268 0647 [email protected] Metals & Mining - Regional Jacqueline KO, CFA

(852) 2268 0633 [email protected] Consumer Terence LOK

(852) 2268 0630 [email protected] Consumer Jeremy TAN

(852) 2268 0635 [email protected] Gaming Karen KWAN

(852) 2268 0640 [email protected] HK & China Property Philip TSE

(852) 2268 0643 [email protected] HK & China Property Warren LAU

(852) 2268 0644 [email protected] Technology – Regional

INDIA Jigar SHAH Head of Research

(91) 22 6623 2601 [email protected] Oil & Gas Automobile Cement Anubhav GUPTA

(91) 22 6623 2605 [email protected] Metal & Mining Capital goods Property Urmil SHAH

(91) 22 6623 2606 [email protected] Technology Media

SINGAPORE Gregory YAP Head of Research

(65) 6432 1450 [email protected] Technology & Manufacturing Telcos Wilson LIEW

(65) 6432 1454 [email protected] Property Developers James KOH

(65) 6432 1431 [email protected] Consumer - Regional YEAK Chee Keong, CFA

(65) 6432 1460 [email protected] Offshore & Marine Alison FOK

(65) 6432 1447 [email protected] Small & Mid Caps Construction ONG Kian Lin

(65) 6432 1470 [email protected] S-REITs Wei Bin

(65) 6432 1455 [email protected] Commodity Logistics S-chips Derrick HENG

(65) 6432 1446 [email protected] Transport (Land, Shipping & Aviation) John CHEONG

(65) 6432 1461 [email protected] Small & Mid Caps Healthcare

INDONESIA Lucky ARIESANDI, CFA (62) 21 2557 1127 [email protected] Base metals Mining Oil & Gas Wholesale Pandu ANUGRAH

(62) 21 2557 1137 [email protected] Automotive Heavy equipment Plantation Toll road Rahmi MARINA

(62) 21 2557 1128 [email protected] Banking Multifinance Adi N. WICAKSONO

(62) 21 2557 1128 [email protected] Generalist Anthony YUNUS

(62) 21 2557 1139 [email protected] Cement Infrastructure Property

PHILIPPINES Luz LORENZO Head of Research

(63) 2 849 8836 [email protected] Strategy Laura DY-LIACCO

(63) 2 849 8840 [email protected] Utilities Conglomerates Telcos Lovell SARREAL

(63) 2 849 8841 [email protected] Consumer Media Cement Luz LORENZO (63) 2 849 8836 [email protected] Conglomerates Property Ports/ Logistics Gaming Katherine TAN (63) 2 849 8843 [email protected] Banks Construction Ramon ADVIENTO (63) 2 849 8845 [email protected] Mining

THAILAND Sukit UDOMSIRIKUL Head of Research

(66) 2658 6300 ext 5090 [email protected]

Maria LAPIZ Head of Institutional Research

Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 [email protected] Consumer/ Big Caps

Mayuree CHOWVIKRAN

(66) 2658 6300 ext 1440 [email protected] Strategy Padon Vannarat

(66) 2658 6300 ext 1450 [email protected] Strategy Surachai PRAMUALCHAROENKIT

(66) 2658 6300 ext 1470 [email protected] Auto Conmat Contractor Steel Suttatip PEERASUB (66) 2658 6300 ext 1430 [email protected] Media Commerce Sutthichai KUMWORACHAI (66) 2658 6300 ext 1400 [email protected] Energy Petrochem Termporn TANTIVIVAT

(66) 2658 6300 ext 1520 [email protected] Property Woraphon WIROONSRI

(66) 2658 6300 ext 1560 [email protected] Banking & Finance Jaroonpan WATTANAWONG (66) 2658 6300 ext 1404 [email protected] Transportation Small cap. Chatchai JINDARAT

(66) 2658 6300 ext 1401 [email protected] Electronics

VIETNAM Michael KOKALARI, CFA Head of Research

(84) 838 38 66 47 [email protected] Strategy Nguyen Thi Ngan Tuyen (84) 844 55 58 88 x 8081 [email protected] Food and Beverage Oil and Gas Hang Vu

(84) 844 55 58 88 x 8087 [email protected] Banking Trinh Thi Ngoc Diep (84) 844 55 58 88 x 8242 [email protected] Technology Utilities Construction Dang Thi Kim Thoa

(84) 844 55 58 88 x 8083 [email protected] Consumer Nguyen Trung Hoa

(84) 844 55 58 88 x 8088 [email protected] Steel Sugar Resources

mailto:[email protected]



Page 1 of 2

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.



Page 1 of 2

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:MATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Kim Eng Vietnam Securities Company (“KEVS”) (License Number: 71/UBCK-GP) is licensed under the StateSecuritiesCommission 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 7 October 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 7 October 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.

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 Total return is expected to be above 10% in the next 12 months (excluding dividends)

HOLD Total return is expected to be between -10% to +10% in the next 12 months (excluding dividends)

SELL Total 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



Page 1 of 2

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

Kim Eng Vietnam Securities Company 1st Floor, 255 Tran Hung Dao St. District 1 Ho Chi Minh City, Vietnam Tel : (84) 838 38 66 36 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 [email protected] Tel: (65) 6336-5157 US Toll Free: 1-866-406-7447

North Asia Sales Trading Eddie LAU [email protected] Tel: (852) 2268 0800 US Toll Free: 1 866 598 2267

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