May 14, 2014
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SEE PAGE 13 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS PP16832/01/2013 (031128)
MY Strategy
Tracking the vision
Malaysia is on track to meet its 2020 aspirations.
Construction, oil & gas will remain long-term beneficiaries on
continuous job/project flows.
No change to our market view, sector and stock calls.
What’s New
The Economic Transformation Programme (ETP) met 103% of its KPI
targets in 2013 (2012: 118%, 2011: 123%), while its enabler, the
Strategic Reform Initiatives met 95% (2012: 93%). The Government
Transfomation Programme (GTP) achieved 104% (2012: 108%; 2011:
131%). These milestones were unveiled by PM Najib on Monday
night. Together, the ETP, SRI and GTP form a package of reforms/
plans to lead the country towards a high-income economy by 2020.
What’s Our View
Macro-economic indicators like private investments and GNI per
capita do point towards an „on-track‟ milestone for a high-income
economy by 2020, as far as the quantitative aspects are
concerned. In terms of market-sector related targets in the ETP-
SRI, we expect:
infrastructure related construction awards to sustain;
efforts to raise upstream oil & gas production and to diversify
downstream to pick up;
government subsidy rationalisation efforts to continue;
asset/investment divestments by the GLCs to continue.
Construction and oil & gas should benefit from the continuity in
job/project flows. KVMRT2 & 3, government land developments
(RRIM, TRX, Warisan Merdeka), urban public transportation (LRT 3)
and RAPID are some of the larger scale infrastructure projects over
the medium term. The HSR project remains a longer-term target.
We however remain cautious on the consumer discretionary sub-
sector as further subsidy rationalisation coupled with the Goods &
Services Tax (GST) implementation from Apr 2015 (which widens
the scope of indirect taxes) would cap sentiment into 2015. An
offsetting factor is a pick-up in investments momentum which
would provide new job opportunities.
There is no change to our year-end KLCI target (1,940), sector and
stock calls/views. The ETP 2013 Annual Report reaffirms our
Overweight call on the construction & oil & gas sectors.
(Please refer to our separate economics piece today for details
on the 2013 ETP, SRI, GTP Report Cards.)
Analyst
Wong Chew Hann
(603) 2297 8686
Current KLCI: 1,866 (12 May)
YE KLCI target: 1,940 (unchanged)
M’sia equities growth & valuation
2013A 2014E 2015E
KLCI @ 1,866 PE (x) 18.0 16.5 15.2
Earnings Growth (%) 5.1% 8.1% 8.4%
Research Universe
PE (x) 18.7 16.8 15.4
Earnings Growth (%) 6.7% 11.4% 9.2%
Our sector weights
OW Construction, Oil & Gas, Power, Gloves, Shipping, Auto
N Aviation, Banking, Building materials,
Consumer, Gaming, Media, Non-banking finance, Plantation, Property,
Petrochem, Telco, Ports
UW -
Our top BUY picks
Stock Name BB Ticker Shr Px @
12 May
TP
Tenaga TNB 11.98 14.00
Genting Malaysia GENM 4.22 4.74
Hong Leong Bank HLBK 14.04 16.40
AMMB Holdings AMM 7.15 8.60
Bumi Armada BAB 3.90 5.00
IJM Corp IJM 6.28 6.75
MPHB Capital MPHB 1.92 2.42
Source: Maybank KE
May 14, 2014 2
Strategy
Key points from ETP 2013 Annual Report
2020 on track
47 projects with a combined committed investment value of MYR8b were
added on in 2013, lifting the total projects to 196 and the total committed
investments to MYR219b since the ETP was launched in Oct 2010. Since
2010, realised private investments have grown by a compounded 17.8%
p.a. to MYR161b, to make up 61% of the total realised investments in 2013
(2010: 55%). Over the same period, GNI per capita grew by a compounded
6.3% p.a. to reach USD10,060 in 2013 (2020 target: USD15,000).
Our economics team is of the view that the achievements so far point
towards an „on-track‟ milestone as far as the quantitative aspects of a
high-income economy (by 2020) are concerned.
ETP: Progress todate
Source: PEMANDU
Economy: Realised private investments
Source: Department of Statistics
179.2
211.3219.3
110
149
196
0
50
100
150
200
250
0
50
100
150
200
250
2011 2012 2013
No.MYR b Commited investments, cumm (MYR b, LHS)
No. of projects, cumm (RHS)
33.8
50.6 53.7 62.1
77.0 80.6 81.0
98.6
112.8
140.2
161.1
0
20
40
60
80
100
120
140
160
180
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Realised private investments (MYR b)
Oct 2010: ETP launch
May 14, 2014 3
Strategy
Economy: GNI per capita
Source: Department of Statistics
Construction: New infrastructure job flows to sustain
The Greater Kuala Lumpur / Klang Valley (KL/KV) National Key Economic
Area (NKEA) achieved a 98% KPI milestone in 2013 (2012: 108%, 2011:
151%). Two entry point projects (EPP) under the Greater KL/KV NKEA,
namely the KVMRT and KL-Singapore HSR, will remain prominent as key
supporting infrastructure to Malaysia‟s capital transformation into a world-
class city and a globally competitive economic hub.
Near-to-medium term implementation will be the KVMRT 2 & 3, where we
understand that the authorities have given their go-ahead but the formal
project award is pending a few final details. Here, we think MMC-Gamuda
will feature as both the project delivery partner (PDP) and main contractor
for the tunnel works portion, supported by their experience in KVMRT 1. As
for the HSR, a joint government-to-government committee has been
formed and the land alignment discussed but we understand that there are
still “many steps before tendering”.
Besides the KVMRT and HSR, other infrastructure and real estate
developments are also lined up in Greater KL/KV, providing sustainability
to construction job flows over the longer term. Syarikat Prasaran Negara
Bhd (SPAD) has completed the feasibility study on a 3rd 36km LRT line
(Bandar Utama-Klang; estd. MYR9b; source: StarBiz, 12 May), while EPF‟s
RRIM, 1MDB‟s TRX and PNB‟s Warisan Merdeka will start construction soon.
The 118-storey MYR5b Warisan Merdeka should be one of the iconic
projects under Greater KL/KV NKEA‟s EPP 7, while LRT expansion comes
under the GTP on Urban Public Transportation.
Greater KL/KV NKEA: EPP 3 (HSR), EPP 4 (KVMRT)
MRT 1. Achievements: (i) elevated guideway foundation works 78% completed; (ii) 7 TBMs delivered (10 in total); (iii) seven
underground station excavated (54% of total). The targets for 2014 comprise: (i) 90% completion of elevated piers; (ii) 80%
completion of elevated guideways; (iii) 80% completion of tunnel construction; and (iv) 80% completion of underground
station excavations.
MRT 2 & 3. Completed Final Implementation Plan after agreement with stakeholders for Economic Council/Cabinet‟s decision
which are now pending.
HSR. Completed Phase 1B Feasibility Study (Jun 2013) to include: (i) economic benefit analysis; (ii) strategic implementation
plan; (iii) required technical/ engineering components. Economic Council provided positive feedback and gave its approval to
proceed with Phase 2A which is expected to complete in 2014
Phase 2A will include: (i) G-to-G engagement and agreement; (ii) technical surveys; (iii) socioeconomic analysis on the 5 HSR
stations; (iv) environmental analysis along the track alignment; (v) set up a dedicated HSR team.
Source: ETP 2013 Annual Report
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,00020
09
2010
2011
2012
2013
2014
E
2015
E
2016
E
2017
E
2018
E
2019
E
2020
E
May 14, 2014 4
Strategy
Greater KL/KV: Rail Scheme Summary
Source: SPAD
Greater KL/KV LRT 2: Awarded contracts
Construction
value (MYR m)
Value per
km (MYR m)
Kelana Jaya line, Package A (Kelana Jaya-Summit; 9.2km;
awarded in Nov 2010)
- Main contractor: TRC (RM950m)
- Nominated sub-contractor for segmental box girder:
UEM Builders-Intria Bina JV (RM93.2m)
1,043.2 113.4
Ampang line, Package A (Sri Petaling-Kinrara; 7.4km;
awarded in Nov 2010)
- Main contractor: Bina Puri-Tim Sekata JV
(RM634.6m)
- Nominated sub-contractor for segmental box girder:
Bina Puri-Tim Sekata JV (RM67.7m)
702.3 94.9
Kelana Jaya line, Package B (Summit-Putra Heights;
8.1km; awarded on 16 Aug 2011)
- Main contractor: Sunway (RM569m)
- Nominated sub-contractor for segmental box girder:
MRCB (RM67.2m)
636.2 78.5
Ampang line, Package B (Kinrara-Putra Heights; 10.3km;
awarded on 16 Aug 2011)
- Main contractor and nominated sub-contractor for
segmental box girder: MRCB (RM1.33b)
1,330.0 129.1
TOTAL (35KM) 3,711.7 106.0
Sources: Prasarana, Companies’ announcement to Bursa
Please refer to our construction update, “Strengthened pipeline” on 24
Apr 2014 for our views and stock picks.
Greater KL/KV: LRT3 alignment
Source: StarBiz, 12 May 2014
May 14, 2014 5
Strategy
Oil & gas: Upstream, downstream to pick up
The Oil, Gas and Energy NKEA met a 97% KPI milestone in 2013 (2012:
119%, 2011: 109%). Some of the key achievements in 2013 include the start
of production at the Balai field (second marginal field to start production
after Berantai in 2012), commissioning of Petronas Gas‟ LNG Regasification
Terminal in Melaka, and completion of the Pengerang International
Petroleum Complex (PIPC) master plan, which was endorsed by the Johor
state government in 1Q13 with site preparation having started.
In 2014 YTD (Jan-Apr), the Tapis field EOR saw the installation of a central
processing platform known as Tapis-R topsides (built by MMHE) to its
jacket, while Dialog-Royal Vopak‟s independent oil storage terminal (1.3m
cu m) in Pengerang received its first cargo shipment. Most prominent is
PETRONAS‟ final investment decision for PIPC which comprises a USD16b
world scale Refinery and Petrochemical Integrated Development (RAPID)
and other associated facilities costing USD11b.
Moving forward, we expect PETRONAS‟ capex in domestic oil & gas will
remain prominent at both the upstream and downstream industries which
will benefit the domestic service providers.
Oil, gas and energy NKEA: EPP achievements in 2013, plans
Enhanced Oil Recovery (EOR). Tapis field saw completion of a central processing platform known
as Tapis-R topsides (built by MMHE and is scheduled to be installed on its jacket by 1Q14).
PETRONAS to continue exploring EOR opportunities and implement EOR techniques in suitable
fields offshore Malaysia. PETRONAS has identified 14 potential fields – 5 in Sarawak, 4 in Sabah, 5
in Peninsular, and expects to extract 750m to 1b barrels of oil from these 14 fields.
Marginal fields. Berantai field, which started production in 2012, achieved a 15% increase in
estimated recoverable gas resources. In addition, the Balai field commenced production on 7 Nov
2013. Moving forward, Vestigo Petroleum S/B, a subsidiary to PETRONAS dedicated to developing
Malaysia‟s marginal and mature fields, will play a prominent role.
Regional storage and trading hub. (i) ATT Tj Bin S/B, a 100%-subsidiary of VTTI BV, launched
Malaysia‟s largest capacity oil storage terminal (890,000 cu m) in Jan 2013. ATB Tj Bin plan to add
250,000 cu m storage capacity, to be commissioned in 2Q15. (ii) Dialog-Royal Vopak JV‟s
independent oil storage terminal (1.3m cu m) in Johor‟s Pengerang is to receive its first cargo
shipment by end 1Q14.
PGB’s LNG Regasification Terminal (RGT) in Sg Udang, Melaka. The terminal received its first
cargo on 30 Apr 2013; the terminal was commissioned on 23 May 2013. As of Oct 2013, the
terminal received a total of 19 LNG cargo.
Increasing petrochemical outputs. (i) The Sipitang Oil & Gas Industrial Park (SOGIP) master plan
(e.USD1.5b, fertiliser plant with urea production capacity of 1.2m mmtpa) was completed in Jun
2013; it is expected to start operations by 2015 (construction started in 2Q12 with >50%
completion as of Aug 2013). (ii) Completion of the Pengerang International Petroleum Complex
(PIPC) master plan, which was endorsed by the Johor state government in 1Q13 with site
preparation having started.
EPP 6 & 8. Investments made by O&G supplier, services and equipment (OGSE) companies under
the purview of Malaysia Petroleum Resources Corp (MPRC) totaled MYR1.83b (vs MYR2b target).
Source: ETP 2013 Annual Report
Please refer to our:
(i) special feature, “PETRONAS gives go-ahead for RAPID” on 4 Apr
2014 for our views and potential beneficiaries;
(ii) separate oil & gas update today, „Key takeaways from Conference‟
as we reiterate our Overweight call on the sector
May 14, 2014 6
Strategy
Consumer discretionary: Subsidy rationalisation to continue
The current phase of government subsidy rationalisation started in Sep-Oct
2013 with a 10%-11% hike in fuel (RON95 & diesel) prices and the removal
of sugar subsidy. This was followed by an 11% rise in Tenaga‟s gas price
procured from PETRONAS and an average 14.9% hike in electricity tariff on
Jan 2014. The latest round of adjustment was the 20% industrial gas price
hike by Gas Malaysia this month. By the look of things so far, there seems
to be a subsidy rationalisation effort every 3-4 months. We expect further
rounds of fuel and electricity tariff hikes into early-2015.
Consequently, we remain cautious on the consumer discretionary sub-
sector as further subsidy rationalisation coupled with the GST
implementation from Apr 2015 (which widens the scope of indirect taxes)
would cap sentiment into 2015. Already sentiment has weakened; latest
MIER consumer sentiment index shows that the index level has fallen to
below the 5-year average for three consecutive quarters, 3Q13-1Q14, just
after the current phase of subsidy rationalisation started.
MIER consumer sentiment index: At below 5-year average
Source: MIER
GLCs’ asset/investment divestments to continue
The SRI on Reducing Government‟s Role in Business achieved a 57% KPI
milestone in 2013 (2012: 91%). The shortfall was in the number of
companies divested (see table overleaf). The divestment also involves the
sale of government linked companies‟ (GLC) ownership in public-listed
companies. To date, 33 companies have been identified for divestment of
which, 23 have been successfully divested as at Nov 2013. This includes
Khazanah Nasional‟s sale of its entire holdings in Digi.Com in Oct 2013.
Other prominent PLC share sale by Khazanah in the last 12M, we observe,
were on MAHB, Tenaga and Time Engineering.
50
60
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90
100
110
120
130
140
150
Mar
-98
Mar
-99
Mar
-00
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-14
MIER consumer sentiment index 5-year (2009-13) average
May 14, 2014 7
Strategy
Reducing Government’s Role in Business SRI: 2013 target and achievements
No. KPI Target Actual
1 Number of companies divested 4 1
- Two companies under Ministry of Works divested 100% 0%
- One company under Ministry of Youth and Sports divested * 100% 100%
- One company under Ministry of Federal Territories divested 100% 0%
2 Divestment of GLC companies: 33 companies
2011-2012 = 24 companies
2013 and beyond = 9 companies
(Note: Divestment means disposal of shares from GLIC to private sector through a listing, stake pare down or outright sale)
9 8
KPI achievement 57%
* Refers to Stadium First S/B, a subsidiary of Stadium Malaysia Corporation, sold via an open tender process, completed in Jun 2013; Source: ETP 2013 Annual Report
GLC divestments would need to be a continuing theme to raise the level of
liquidity in the Malaysian bourse, in our view. Based on our review in Nov
2013, the combined GLC holdings in Malaysian equities was about 34.5% for
the top 100 market cap stocks and a higher 39.6% for KLCI: EPF (11.2%),
PNB (8.7%), Khazanah (8.5%), and PETRONAS (9.8%). We expect Khazanah
to pare its stake in Astro, MAHB, IHH, Telekom, Axiata, Tenaga and UEMS,
being matured investments. This could be “off-set” by a restructuring at
MAS which is imminent, we think, after the tragic MH370 incident.
GLC divestment achievement, per ETP 2011 and 2012 ARs
2011 11 DIVESTMENTS COMPLETED
Khazanah Sale of its entire 32.21% stake in Pos Malaysia to DRB-Hicom (Apr)
Khazanah Sale of its 10% stake in EON Capital to Hong Leong Bhd (May)
Felda Listed MSM Malaysia Holding, which incorporates 5 out of 7 companies identified for listing under the GLIC divestment programme (Jun)
Boustead Announcement on a series of corporate exercises to pare down its 97.81% stake in Pharmaniaga to 55% to comply with listing requirements on public
free float (Jul)
Khazanah Joint offer from UEM Group and EPF for PLUS divestment (Nov); via the co-investment, PLUS is now 51% owned by UEM Group, 49% by EPF
2012 4 DIVESTMENTS COMPLETED
EPF Lowered its holdings in RHB Cap to 40.7% after the RHB Cap-OSK Holdings
merger (Dec)
Felda Listed Felda Global Ventures (Jun)
LTAT Sale of 97% stake in Johan Ceramics to Boustead Holdings (Sep)
Ekuinas Sale of 24% stake in Tanjung Offshore (Nov)
Other GLC divestments (apart from the 33 GLCs identified under the SRI)
Khazanah Listed IHH Healthcare (Jul)
Khazanah Sale of its entire 42.7% stake in Proton Holdings to DRB-Hicom
Khazanah Invited tenders for STLR Sdn Bhd which is involved in property investment
Khazanah Started sale process of its entire 45% stake in Time Engineering
Khazanah Divested 60m Tenaga shares, lowering its holding to 34% from 35.2%
MoF Inc Sale of its 40% stake in Kedah Aquaculture Sdn Bhd to SKS Realty Sdn Bhd
PNB Invited tenders for companies identified to be sold: FEC Cables, U-Travelwide, U-Insurance and Inobel
Johor govt Stated discussions to streamline Johor Corp‟s core holdings to focus on oil palm plantations, healthcare, property and the food industry.
Source: ETP 2011 and 2012 Annual Reports
May 14, 2014 8
Strategy
Market shareholding (top 100 stocks), Nov 2013 Market shareholding (KLCI 30 stocks), Nov 2013
Source: Maybank KE Source: Maybank KE
Khazanah’s Malaysia PLC holdings
Listed GLCs Maybank KE’s call
(target px)
Khazanah's
stake
Khazanah's
stake
Market cap Khazanah's
holding worth
31-Mar-13 31-Mar-14 12-May-14 12-May-14
(%) (%) (MYR'm) (MYR'm)
Tenaga BUY (MYR14.00) 33.54% 32.40% 67,610 21,906
CIMB Group HOLD (MYR8.00) 30.03% 29.19% 60,773 17,740
Axiata HOLD (MYR7.00) 38.97% 37.85% 58,793 22,253
IHH Healthcare HOLD (MYR3.80) 45.30% 45.24% 32,553 14,727
Telekom HOLD (MYR5.90) 28.73% 28.73% 22,001 6,321
Astro Malaysia HOLD (MYR3.37) 20.76% 20.61% 17,154 3,536
M‟sia Airports SELL (MYR7.03) 40.18% 36.60% 10,993 4,024
UEM Sunrise HOLD (MYR2.12) 64.81% 61.90% 10,255 6,348
Westports BUY (MYR2.70) NA 4.74% 9,718 461
MAS HOLD (MYR0.22) 69.37% 69.37% 3,509 2,434
TimedotCom HOLD (MYR4.60) 20.89% 20.89% 2,390 499
Faber Group Not Rated 32.03% 34.29% 1,093 375
Time Eng Not Rated 45.03% Nil 229 0
Total 297,072 100,623
Sources: Khazanah, Bloomberg, Maybank KE
PNB, 7.3%
EPF, 10.0%
Khazanah, 6.7%
PETRONAS, 8.0%
KWAP, Valuecap,
LTH, LTAT, Felda, 2.4%
Strategic (non-GLICs), 27.2%
Others, 38.4%
Top 100 stocks (market cap)
PNB, 8.7%
EPF, 11.2%
Khazanah, 8.5%
PETRONAS, 9.8% KWAP,
Valuecap, LTH, LTAT, Felda, 1.4%
Strategic (non-GLICs), 21.8%
Others, 38.6%
KLCI 30 stocks (market cap)
May 14, 2014 9
Strategy Maybank KE Equity Research Stock Universe
Ticker
Company FYE Price Market TP Reco
m
Core Net Profit EPS CAGR
CAGR
PER PER PER ROE Div
Yld
PBV Price
chg 12-May Cap CY13A CY14F CY15F CY13
A
CY14F CY15F 13-15 CY13A CY14F CY15F CY15
A
CY14F CY13
A
YTD MYR m MYR MYR m MYR sen (%) (x) (%) (%) (x) (%)
Autos
BAUTO MK Berjaya Auto * 4 2.09 1,681 2.38 Buy 87 131 162 11.1 16.3 20.1 34.8 18.9 12.8 10.4 34.2 2.4 6.7 26.7
MBM MK MBM Resources * 12 3.22 1,258 3.60 Buy 139 135 157 35.5 34.6 40.1 6.3 9.1 9.3 8.0 9.4 2.7 0.9 0.3
TCM MK Tan Chong # 12 5.59 3,649 6.80 Buy 293 290 370 44.8 44.4 56.6 12.4 12.5 12.6 9.9 11.5 2.1 1.4 (9.7)
UMWH MK UMW Hldgs * 12 10.70 12,501 12.44 Buy 881 956 1,070 75.4 81.8 91.6 10.2 14.2 13.1 11.7 14.5 3.8 2.0 (11.3)
Banking
MAY MK Maybank 12 9.85 87,389 NR NR 6,552 7,194 7,889 82.9 79.5 83.6 0.4 11.9 12.4 11.8 13.2 5.6 1.9 (0.9)
AMM MK AMMB Holdings 3 7.15 21,551 8.60 Buy 1,762 1,930 2,098 58.5 64.0 69.6 9.1 12.2 11.2 10.3 13.7 3.7 1.7 (1.2)
BIMB MK BIMB Holdings * 12 4.09 6,108 4.30 Hold 256 498 525 23.7 33.3 35.2 22.0 17.3 12.3 11.6 15.8 3.3 2.2 (9.9)
CIMB MK CIMB 12 7.29 60,773 8.00 Hold 4,178 4,683 5,224 55.2 56.9 63.5 7.3 13.2 12.8 11.5 13.1 3.1 1.9 (4.3)
HLBK MK Hong Leong Bk 6 14.04 25,255 16.40 Buy 1,964 2,171 2,372 110.5 120.7 131.9 9.3 12.7 11.6 10.6 14.2 2.8 1.8 (2.5)
HLFG MK HL Financial 6 15.42 16,234 17.30 Buy 1,506 1,587 1,722 144.8 152.6 165.6 6.9 10.6 10.1 9.3 13.2 2.5 1.5 (0.4)
PBK MK Public Bank 12 19.96 69,902 18.00 Sell 4,065 4,319 4,705 116.1 123.3 134.3 7.6 17.2 16.2 14.9 17.9 2.8 3.4 2.9
RHBC MK RHB Capital 12 8.41 21,420 8.40 Hold 1,831 2,019 2,219 72.9 79.3 87.1 9.3 11.5 10.6 9.7 10.7 2.2 1.3 6.5
Building Materials
AJR MK Ann Joo # 12 1.17 586 1.20 Hold 23 40 46 4.4 7.6 8.7 40.6 26.6 15.4 13.4 4.0 - 0.6 11.4
LMC MK Lafarge * 12 9.01 7,656 9.90 Buy 386 389 400 45.4 45.7 47.0 1.7 19.8 19.7 19.2 12.1 4.7 2.3 5.1
Construction / Infra
EVSD MK Eversendai * 12 1.07 828 0.98 Hold 52 76 83 6.7 9.8 10.7 26.4 16.0 10.9 10.0 8.6 2.2 0.5 2.9
GAM MK Gamuda * 7 4.56 10,514 4.45 Hold 644 687 742 27.7 31.8 34.4 11.6 16.5 14.3 13.3 13.5 2.9 2.1 (5.0)
HSL MK HSL * 12 1.91 1,050 2.30 Buy 85 104 111 15.3 18.7 19.9 14.0 12.5 10.2 9.6 15.5 2.3 2.0 2.1
IJM MK IJM Corp * 3 6.28 9,056 6.75 Buy 526 584 627 38.0 42.2 45.4 9.3 16.5 14.9 13.8 9.1 2.1 1.5 6.8
LTK MK Litrak * 3 3.85 1,983 4.45 Buy 133 142 163 26.1 27.8 31.8 10.5 14.8 13.9 12.1 26.9 4.4 4.2 (11.9)
WCT MK WCT * 12 2.26 2,454 2.55 Buy 201 189 202 17.7 17.5 18.4 2.0 12.8 12.9 12.3 8.1 3.0 1.1 10.2
CMS MK CMS * 12 9.79 3,369 10.50 Buy 175 208 252 51.6 61.3 74.2 19.9 19.0 16.0 13.2 12.8 1.9 2.0 42.5
KICB MK Kimlun Corp * 12 1.59 478 1.90 Buy 36 55 62 12.1 18.2 20.6 30.5 13.1 8.7 7.7 16.1 3.1 1.6 (5.1)
Consumer
AEON MK AEON Co * 12 14.98 5,258 13.70 Hold 231 254 278 65.8 72.3 79.1 9.6 22.8 20.7 18.9 13.8 1.4 3.2 7.0
ROTH MK BAT (M) - 12 61.50 17,560 57.00 Sell 823 893 949 288.4 312.9 332.4 7.4 21.3 19.7 18.5 158.1 4.8 34.6 (4.1)
CAB MK Carlsberg 12 12.24 3,765 12.40 Hold 184 201 204 60.2 65.7 66.6 5.2 20.3 18.6 18.4 66.7 5.0 13.6 0.5
GUIN MK Guinness 6 13.94 4,211 13.20 Hold 207 199 203 68.7 65.8 67.1 -1.2 20.3 21.2 20.8 54.8 4.7 5.7 (12.9)
RJR MK JTI 12 7.74 2,024 7.80 Hold 122 128 135 46.5 49.0 51.6 5.3 16.6 15.8 15.0 26.7 2.8 4.7 19.4
PAD MK Padini Holdings * 6 1.96 1,290 2.35 Buy 92 105 115 14.0 15.9 17.5 11.8 14.1 12.3 11.2 25.4 5.7 3.4 8.3
NESZ MK Nestle * 12 67.32 15,787 64.00 Hold 562 610 703 239.5 260.3 299.9 11.9 28.1 25.9 22.4 79.7 3.7 19.3 (1.0)
QLG MK QL Resources * 3 3.06 3,819 2.86 Hold 151 178 203 12.1 14.3 16.2 15.8 25.3 21.5 18.9 15.9 1.6 3.2 7.7
MSM MK MSM Malaysia Holdings
* 12 4.95 3,480 5.30 Hold 249 266 278 35.4 37.8 39.5 5.6 14.0 13.1 12.5 13.7 5.0 1.9 (1.0)
OTB MK Oldtown * 3 2.05 929 2.67 Buy 58 68 75 15.9 18.8 20.7 13.9 12.9 10.9 9.9 18.3 5.0 2.1 (1.4)
IHH MK IHH * 12 3.99 32,553 3.80 Hold 649 825 963 8.0 10.2 11.8 21.4 49.9 39.1 33.8 5.0 0.6 1.8 3.4
* Shariah compliant (under Securities Commission’s new Shariah compliant list) # No longer Shariah compliant; Source: Maybank KE
May 14, 2014 10
Strategy Maybank KE Equity Research Stock Universe (continued)
Ticker
Company FYE Price Market TP Reco
m
Core Net Profit EPS CAGR
CAGR
PER PER PER ROE Div
Yld
PBV Price
chg 12-May Cap CY13A CY14F CY15F CY13A
CY14F CY15F 13-15 CY13A CY14F CY15F CY15A
CY14F CY13A
YTD MYR m MYR MYR m MYR sen (%) (x) (%) (%) (x) (%)
Gaming
BST MK BToto 4 3.83 5,163 3.95 Hold 372 378 391 27.8 28.0 28.9 2.0 13.8 13.7 13.2 50.9 6.0 8.5 (3.2)
MAG MK Magnum 12 3.02 4,311 3.04 Hold 329 279 287 23.1 19.5 20.1 -6.7 13.1 15.5 15.0 11.1 5.3 1.7 (4.4)
GENT MK Genting Bhd 12 9.82 36,500 10.22 Hold 1,758 2,066 2,314 47.6 55.9 62.6 14.7 20.6 17.6 15.7 8.8 0.6 1.4 (4.3)
GENM MK Genting Msia 12 4.22 23,933 4.74 Buy 1,714 1,619 1,727 30.2 28.5 30.4 0.3 14.0 14.8 13.9 10.1 1.6 1.5 (3.7)
Manufacturin
g
HART MK Hartalega Hldgs * 3 5.78 4,319 6.70 Hold 234 234 285 31.6 29.6 35.3 5.7 18.3 19.5 16.4 20.0 2.3 4.9 (20.1)
KRI MK Kossan Rubber * 12 4.14 2,647 5.00 Buy 141 169 191 22.0 26.4 29.8 16.4 18.8 15.7 13.9 21.2 2.9 3.8 (4.2)
TOPG MK Top Glove * 8 4.69 2,911 6.00 Buy 191 196 218 30.9 31.6 35.1 6.6 15.2 14.8 13.4 13.9 3.4 2.1 (16.7)
Media
ASTRO MK Astro Malaysia 1 3.30 17,154 3.37 Hold 446 564 725 8.6 10.8 13.9 27.7 38.6 30.6 23.7 78.0 3.3 27.9 10.0
MCIL MK MCIL # 3 0.97 1,628 1.01 Hold 167 170 178 9.9 10.1 10.6 3.4 9.7 9.6 9.1 20.3 5.2 2.3 (1.0)
MPR MK Media Prima 12 2.50 2,762 2.52 Hold 214 224 230 19.2 19.3 19.9 1.8 13.0 13.0 12.6 12.8 5.6 1.7 (4.6)
STAR MK Star * 12 2.71 2,000 2.55 Buy 144 154 170 19.5 20.8 23.0 8.6 13.9 13.0 11.8 13.7 5.5 1.7 21.5
Oil & Gas
AMRB MK Alam Maritim * 12 1.55 1,242 1.90 Buy 82 98 99 10.2 12.2 12.3 9.8 15.2 12.7 12.6 12.3 0.2 2.0 (1.3)
DLG MK Dialog * 6 3.76 9,145 3.90 Buy 219 264 298 9.2 11.1 12.5 16.3 40.9 34.0 30.2 16.5 1.2 6.3 5.0
PETR MK Perdana Petro * 12 1.81 1,336 2.55 Buy 61 100 122 8.5 13.7 16.8 40.6 21.3 13.2 10.8 14.2 - 2.9 13.8
WSC MK Wah Seong * 12 2.04 1,579 1.50 Hold 42 83 91 5.5 10.8 11.8 46.5 37.1 18.9 17.3 8.2 3.7 1.3 24.5
MMHE MK MMHE * 12 3.84 6,144 4.20 Buy 237 175 331 14.8 10.9 20.7 18.3 25.9 35.2 18.6 11.3 1.3 2.4 9.7
BAB MK Bumi Armada # 12 3.90 11,437 5.00 Buy 449 471 502 15.3 16.1 17.2 6.0 25.5 24.2 22.7 9.6 - 2.6 (3.2)
YNS MK Yinson # 1 8.00 2,066 10.10 Buy 63 109 147 24.5 42.1 57.1 52.6 32.6 19.0 14.0 19.4 0.2 4.1 18.7
BARAKAH MK Barakah * 12 1.66 1,040 1.90 Buy 49 73 118 4.8 8.4 13.6 68.3 34.6 19.8 12.2 32.4 - 5.9 8.5
PPT MK Perisai * 12 1.60 1,908 1.76 Buy 62 70 151 6.3 6.0 12.6 41.4 25.4 26.7 12.7 13.2 - 1.7 0.6
SAKP MK SapuraKencana * 1 4.29 25,706 5.30 Buy 983 1,310 1,655 17.4 22.0 27.6 25.9 24.6 19.5 15.5 12.7 - 2.6 (12.4)
UMWOG MK UMW O&G - 12 4.15 8,972 5.15 Buy 167 288 485 7.7 13.3 22.4 70.6 53.9 31.2 18.5 13.5 - 3.2 3.5
Plantation
GENP MK Genting Plantn * 12 11.24 8,544 11.20 Hold 305 419 474 40.2 55.2 62.4 24.6 28.0 20.4 18.0 11.5 1.0 2.5 1.8
IOI MK IOI Corp * 6 5.05 32,081 3.95 Sell 1,601 1,395 1,270 24.9 21.7 19.8 -10.9 20.3 23.3 25.6 17.6 2.0 3.5 7.2
KLK MK KL Kepong * 9 24.40 25,985 24.00 Hold 940 1,092 1,125 88.0 102.3 105.4 9.5 27.7 23.9 23.1 13.2 2.5 3.6 (2.0)
SIME MK Sime Darby * 6 9.46 57,366 10.20 Buy 3,222 3,255 3,416 53.6 54.2 56.9 3.0 17.6 17.5 16.6 11.1 3.2 2.0 (0.6)
FGV MK Felda Global * 12 4.55 16,599 4.48 Hold 90 691 788 2.5 18.9 21.6 193.9 182.0 24.1 21.1 10.8 1.6 2.5 1.3
SOP MK Swak Oil Palms * 12 6.46 2,833 6.80 Buy 97 152 198 22.3 34.7 45.3 42.5 29.0 18.6 14.3 12.8 0.8 2.3 (0.8)
TSH MK TSH Resources * 12 3.30 2,960 3.40 Buy 114 145 164 12.9 16.0 18.2 18.8 25.6 20.6 18.1 12.8 1.5 2.7 9.6
THP MK TH Plantations * 12 2.07 1,826 1.65 Hold 63 75 97 7.2 8.6 11.0 23.6 28.8 24.1 18.8 7.6 2.1 1.5 10.1
TAH MK Ta Ann * 12 4.20 1,556 4.75 Buy 58 82 117 15.7 22.0 31.7 42.1 26.8 19.1 13.2 10.4 2.3 1.7 0.7
* Shariah compliant (under Securities Commission’s new Shariah compliant list) # No longer Shariah compliant; Source: Maybank KE
May 14, 2014 11
Strategy Maybank KE Equity Research Stock Universe (continued)
Ticker
Company FYE Price Market TP Recom
Core Net Profit EPS CAGRCAGR
PER PER PER ROE Div Yld
PBV Price chg 12-May Cap CY13A CY14F CY15F CY13
A CY14F CY15F 13-15 CY13A CY14F CY15F CY15
A CY14F CY13
A YTD
MYR m MYR MYR m MYR sen (%) (x) (%) (%) (x) (%)
Non-Banking Finance
BURSA MK Bursa Malaysia 12 7.60 4,050 8.00 Hold 173 187 200 32.5 35.2 37.5 7.4 23.4 21.6 20.3 24.5 4.6 5.0 (7.7)
MPHB MK MPHB Capital 12 1.92 1,373 2.42 Buy 65 63 68 11.9 6.8 8.8 -13.9 16.2 28.2 21.8 5.7 0.7 1.3 14.3
Petrochemica
ls
PCHEM MK Petronas Chem * 12 6.79 54,320 6.85 Hold 3,156 3,659 3,712 39.5 45.7 46.4 8.4 17.2 14.9 14.6 14.8 3.4 2.3 (1.9)
Property
AXRB MK Axis REIT * 12 3.45 1,591 2.71 Hold 89 91 94 19.4 19.8 20.6 3.0 17.8 17.4 16.7 9.4 5.6 1.6 17.7
KLCC MK KLCC Prop * 12 6.47 11,681 6.25 Hold 626 652 675 34.7 36.1 37.4 3.8 18.6 17.9 17.3 6.1 5.1 0.9 10.6
MSGB MK Mah Sing * 12 2.29 3,269 2.44 Hold 281 349 428 17.3 25.2 30.8 33.4 13.2 9.1 7.4 17.7 4.4 1.7 1.3
QUIL MK Quill Capita 12 1.14 445 1.16 Hold 35 36 38 8.9 9.3 9.7 4.4 12.8 12.3 11.8 7.1 6.9 0.8 (3.4)
SPSB MK SP Setia # 10 2.99 7,352 3.36 Hold 428 503 626 18.1 20.5 25.4 18.5 16.5 14.6 11.8 10.3 4.1 1.3 (0.7)
ULHB MK UEM Sunrise * 12 2.26 10,255 2.12 Hold 579 579 544 13.0 13.0 12.2 -3.1 17.4 17.4 18.5 8.0 1.9 1.8 (4.2)
SWB MK Sunway Berhad * 12 2.98 5,136 2.79 Hold 483 501 516 30.6 29.0 30.0 -1.0 9.7 10.3 9.9 8.4 1.9 0.9 9.6
GLMC MK Glomac * 4 1.08 785 1.20 Hold 149 112 139 13.5 15.4 19.1 18.9 8.0 7.0 5.7 13.7 4.3 0.9 (3.6)
CMMT MK CMMT 12 1.50 2,664 1.74 Buy 149 230 165 8.4 8.5 9.1 4.1 17.9 17.6 16.5 7.3 6.4 1.3 7.1
SREIT MK Sunway REIT 6 1.38 4,038 1.24 Hold 219 230 222 7.5 7.9 9.1 10.2 18.4 17.6 15.2 7.4 5.9 1.1 11.3
IGBREIT MK IGB REIT 12 1.20 4,122 1.24 Hold 207 217 222 6.1 6.3 6.5 3.2 19.7 19.0 18.5 6.1 5.2 1.1 0.8
PREIT MK Pavilion REIT 12 1.38 4,156 1.53 Buy 210 227 230 7.0 7.5 7.6 4.2 19.7 18.4 18.2 6.9 5.7 1.3 7.8
Telecommunications
DIGI MK DiGi.Com * 12 5.55 43,151 5.00 Hold 1,706 1,860 1,908 21.9 23.9 24.5 5.8 25.3 23.2 22.7 288.6 4.3 61.7 11.9
T MK Telekom * 12 6.15 22,001 5.90 Hold 1,039 979 1,055 29.0 27.4 29.5 0.9 21.2 22.4 20.8 14.4 4.0 3.1 10.8
AXIATA MK Axiata * 12 6.87 58,793 7.00 Hold 2,900 2,809 3,028 34.0 32.9 35.4 2.0 20.2 20.9 19.4 14.4 3.6 3.0 (0.4)
MAXIS MK Maxis * 12 6.91 51,861 7.20 Hold 1,765 2,054 2,128 23.5 27.4 28.4 9.9 29.4 25.2 24.3 50.9 5.8 8.6 (5.0)
TDC MK Time dotCom * 12 4.17 2,390 4.60 Hold 260 120 132 45.4 21.0 23.0 -28.8 9.2 19.9 18.1 5.9 1.6 1.2 17.5
Transport
AIRA MK AirAsia # 12 2.26 6,286 2.65 Buy 418 705 710 15.0 25.3 25.5 30.4 15.1 8.9 8.9 11.5 2.2 1.3 2.7
AAX MK AirAsia X * 12 0.76 1,790 1.06 Buy (22) 168 293 -0.9 7.1 12.4 n.a. n.a. 10.6 6.1 13.2 - 1.4 (24.1)
MAHB MK MAHB 12 8.00 10,993 7.03 Sell 362 391 461 29.4 28.8 34.0 7.5 27.2 27.8 23.5 7.6 2.0 2.1 (11.1)
MAS MK MAS * 12 0.21 3,509 0.22 Hold (1,083
)
-221 241 -6.0 -1.0 1.0 n.a. n.a. n.a. 21.0 5.9 - 0.9 (32.3)
WPRTS MK Westports * 12 2.85 9,718 2.70 Buy 435 484 484 12.8 14.2 14.2 5.3 22.3 20.1 20.1 26.2 3.7 6.1 12.6
NCB MK NCB Holdings * 12 3.16 1,486 3.60 Hold 54 140 148 11.4 29.8 31.4 66.0 27.7 10.6 10.1 9.1 3.2 1.0 (9.7)
MISC MK MISC * 12 6.45 28,791 7.20 Buy 1,529 1,581 1,705 34.2 35.4 38.2 5.7 18.9 18.2 16.9 5.9 - 1.2 13.2
Utilities
TNB MK Tenaga * 8 11.98 67,610 14.00 Buy 4,409 5,251 5,515 78.7 93.0 97.7 11.4 15.2 12.9 12.3 12.7 2.5 1.9 5.3
PTG MK Petronas Gas * 12 23.48 46,461 23.50 Hold 2,141 1,668 1,729 108.2 84.3 87.4 -10.1 21.7 27.9 26.9 15.3 2.5 4.5 (3.3)
GMB MK Gas Msia * 12 3.60 4,622 3.80 Hold 171 182 192 13.4 14.2 14.9 5.4 26.9 25.4 24.2 19.1 3.9 4.6 (7.0)
YTLP MK YTL Power # 6 1.63 11,072 1.84 Hold 1,038 1,055 1,051 14.6 14.9 14.8 0.7 11.2 11.0 11.0 7.8 0.6 1.1 (9.4)
* Shariah compliant (under Securities Commission’s new Shariah compliant list) # No longer Shariah compliant; Source: Maybank KE
May 14, 2014 12
Strategy
Research Offices
REGIONAL
WONG Chew Hann, CA
Regional Head of Institutional Research
(603) 2297 8686 [email protected]
ONG Seng Yeow
Regional Head of Retail Research
(65) 6432 1453 [email protected]
Alexander GARTHOFF
Institutional Product Manager
(852) 2268 0638 [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 • Construction & Infrastructure
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
Karen KWAN (852) 2268 0640 [email protected] • Property & REITs
Osbert TANG, CFA (852) 21 5096 8370 [email protected] • Transport & Industrials
Philip TSE, CFA FRM (852) 2268 0643 [email protected] • Property & REITs
Ricky WK NG, CFA (852) 2268 0689 [email protected] • Utilities & Renewable Energy
Simon QIAN, CFA (852) 2268 0634 [email protected] • Telecom & Internet
Steven ST CHAN (852) 2268 0645 [email protected] • Banking & Financials
Warren LAU (852) 2268 0644 [email protected] • Technology – Regional
William YANG (852) 2268 0675 [email protected] • Technology – Regional
INDIA
Jigar SHAH Head of Research
(91) 22 6623 2601
• Oil & Gas • Automobile • Cement
Anubhav GUPTA
(91) 22 6623 2605
• Metal & Mining • Capital Goods • Property
Urmil SHAH
(91) 22 6623 2606 [email protected]
• Technology • Media
SINGAPORE
NG Wee Siang Head of Research (65) 6432 1467 [email protected] • Banking & Finance
Gregory YAP (65) 6432 1450 [email protected] • SMID Caps – Regional • Technology & Manufacturing • Telcos
Wilson LIEW (65) 6432 1454 [email protected] • Property Developers
ONG Kian Lin (65) 6432 1470 [email protected] • S-REITs
James KOH (65) 6432 1431 [email protected] • Consumer - Regional
YEAK Chee Keong, CFA (65) 6432 1460 [email protected] • Offshore & Marine
Derrick HENG (65) 6432 1446 [email protected] • Transport (Land, Shipping & Aviation)
WEI Bin (65) 6432 1455 [email protected] • Commodity • Logistics • S-chips
John CHEONG (65) 6432 1461 [email protected] • Small & Mid Caps • Healthcare
INDONESIA
Wilianto IE Head of Research (62) 21 2557 1125 [email protected] • Strategy
Rahmi MARINA (62) 21 2557 1128 [email protected] • Banking & Finance
Aurellia SETIABUDI (62) 21 2953 0785 [email protected] • Property
Anthony YUNUS (62) 21 2557 1136 [email protected] • Consumer • Poultry
Isnaputra ISKANDAR (62) 21 2557 1129 [email protected] • Metals & Mining • Cement
Pandu ANUGRAH (62) 21 2557 1137 [email protected] • Infrastructure • Construction • Transport
Janni ASMAN (62) 21 2953 0784 [email protected] • Cigarette • Healthcare • Retail
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
Rommel RODRIGO (63) 2 849 8839 [email protected] • Conglomerates • Property • Gaming • Ports/ Logistics
Katherine TAN (63) 2 849 8843 [email protected] • Banks • Construction
Ramon ADVIENTO (63) 2 849 8845 [email protected] • Mining
THAILAND
Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 [email protected] • Consumer / Materials
Jesada TECHAHUSDIN, CFA (66) 2658 6300 ext 1394 [email protected] • Financial Services
Kittisorn PRUITIPAT, CFA, FRM (66) 2658 6300 ext 1395 [email protected] • Real Estate
Sittichai DUANGRATTANACHAYA (66) 2658 6300 ext 1393 [email protected] • Services Sector
Sukit UDOMSIRIKUL Head of Retail Research (66) 2658 6300 ext 5090 [email protected]
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
LE Hong Lien, ACCA Head of Institutional Research (84) 844 55 58 88 x 8181 [email protected] • Strategy • Consumer • Diversified • Utilities
THAI Quang Trung, CFA, Deputy Manager, Institutional Research (84) 844 55 58 88 x 8180 [email protected] • Real Estate • Construction • Materials
TRUONG Thanh Hang (84) 844 55 58 88 x 8085 [email protected] • Consumer
Le Nguyen Nhat Chuyen (84) 844 55 58 88 x 8082 [email protected] • Oil & Gas NGUYEN Thi Ngan Tuyen, Head of Retail Research
(84) 8 44 555 888 x 8081 [email protected] • Food & Beverage • Oil&Gas • Banking
NGUYEN Trung Hoa, Dy Head of Retail Research (84) 8 44 555 888 x 8088 [email protected] • Macro • Steel • Real estate
TRINH Thi Ngoc Diep (84) 4 44 555 888 x 8208 [email protected] • Technology • Utilities • Construction
TRUONG Quang Binh (84) 4 44 555 888 x 8087 [email protected] • Rubber plantation • Tyres and Tubes • Oil&Gas
PHAM Nhat Bich (84) 8 44 555 888 x 8083 [email protected] • Consumer • Manufacturing • Fishery
NGUYEN Thi Sony Tra Mi (84) 8 44 555 888 x 8084 [email protected] • Port operation • Pharmaceutical
• Food & Beverage
May 14, 2014 13
Strategy
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.
May 14, 2014 14
Strategy
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 May 14, 2014, 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 May 14, 2014, 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.
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.
May 14, 2014 15
Strategy
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