REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 11 February 2015

▌What’s on the Table…

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Plantations - Demand is the key factor in 2Q15

Malaysian palm oil inventories fell 12% mom to a 6-month low of 1.77m tonnes as at end-Jan 15. We view this as a neutral event as it is in line with our and consensus estimates. We expect palm oil output to trend higher from March onwards as the impact of flooding subsides. As such, higher CPO demand will be critical to keep inventory manageable. The recent proposal by the Indonesian government to provide Rp4k per litre subsidy for biodiesel in Indonesia and a more competitive CPO price discount to soybean oil will be the key factors to lift demand. Our Neutral sector stance and top picks – First Resources, AALI and SIMP – are intact.

Astro Malaysia - Staying in orbit

Our recent visit to Astro’s broadcasting centre left us still confident about the group’s prospects, which will be driven by higher ARPU growth, a potential recovery in pay-TV subscriber addition and better cost management. Astro’s consistently strong free cash flow could result in dividend upside in FY15 and in future years. We maintain our FY15-17 EPS forecasts and DCF-based target price of RM3.80 (WACC 8%). Astro is an Add and our top pick in the media sector. Rising ARPU growth from value-added services, higher licensing income and stronger home shopping contribution are potential catalysts.

Hartalega Holdings - Better 3Q performance

Hartalega’s 9MFY15 net profit was in line with expectations, meeting 73% of our full-year forecast and 70% of consensus’s. The weaker results were mainly due to a weak 1H15 that was impacted by higher operating cost. Although 3QFY15 net profit continued to post a slight yoy drop, it was much better than the performance in the past four quarters, thanks to the stronger sales volume. We expect a better 4Q performance due to maiden contribution from its NGC plant and a stronger US$/RM rate. We maintain our target price (based on 21x CY16 P/E or its 2-year historical mean) and Add call. The return to strong earnings growth in FY16 is a potential re-rating catalyst.

Fraser & Neave Holdings - Good Dairies Malaysia results

F&N’s 1QFY9/15 results were in line with our forecasts (26.7% of full-year earnings) and consensus’ estimates (25.8%). Its financial 1Q is typically stronger due to yearend festivities. Revenue expanded 9.3% yoy on the back of stronger sales volume while core net profit increased 9.6%, mainly driven by a lower effective tax rate. Given the in-line results, we maintain our earnings forecasts and DCF-based target price, and keep our Add rating on the stock. Potential re-rating catalysts are more products cross-selling, and the recovery of margins in Thailand.

Economic Update - Drop in reserves narrows in Jan

Economic Update - IP growth points to sustained GDP growth in 4Q14

▌News of the Day…

—————————————————————————————————————————————————————————————————————— • Cypark CEO’s stake in company may increase to 14.8% via private placement

• Malaysia palm oil exports slumped the most in seven years in January

• Paramount unveiled RM260m KDU University college campus in Glenmarie

• China's inflation 0.8% in Jan, its lowest level for more than five years

• US remains world's top source of oil supply growth up to 2020, says IEA

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,650

1,700

1,750

1,800

1,850

1,900

Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15

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FBMKLCI

1811.12 -0.46pts -0.03%Feb Futures Mar Futures

1805.5 - (0.28% ) 1805 - (1.00% )———————————————————————————

Gainers Losers Unchanged436 371 324

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Turnover2473.84m shares / RM2292.147m

3m avg volume traded 1774.27m shares

3m avg value traded RM1917.56m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,811 3,434 5,321 1,595 24,528 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,811.12 (0.0) 2.8

FBM100 12,154.89 (0.1) 2.9

FBMSC 16,394.77 1.1 9.0

FBMMES 6,501.91 (0.4) 15.0

Dow Jones 17,868.76 0.8 0.3

NASDAQ 4,787.65 1.3 1.1

FSSTI 3,434.24 0.5 2.1

FTSE-100 6,829.12 (0.1) 4.0

SENSEX 28,355.62 0.5 3.1

Hang Seng 24,528.10 0.0 3.9

JCI 5,321.47 (0.5) 1.8

KOSPI 1,935.86 (0.6) 1.1

Nikkei 225 17,652.68 (0.3) 1.2

PCOMP 7,723.14 (0.8) 6.8

SET 1,594.96 (0.4) 6.5

Shanghai 3,141.59 1.5 (2.9)

Taiwan 9,393.70 (0.3) 0.9————————————————————————————————

Close % chg Vol. (m)

PERISAI 0.635 19.8 202.5

ASIA BIOENERGY 0.145 (3.3) 145.9

SUMATEC 0.230 2.2 114.1

ETI TECH CORP 0.070 7.7 91.5

KNM GROUP 0.700 0.7 89.1

TH HEAVY 0.420 13.5 71.8

DAYA MATERIALS 0.160 6.7 65.5

PDZ HOLDINGS 0.175 9.4 58.2————————————————————————————————

Close % chg

US$/Euro 1.1319 (0.03)

RM/US$ (Spot) 3.5792 (0.04)

RM/US$ (12-mth NDF) 3.6735 (0.07)

OPR (% ) 3.24 3.18

BR (% , CIMB Bank) 4.00 0.00

GOLD ( US$/oz) 1,234.51 0.07

WTI crude oil US spot (US$/barrel) 50.02 (5.37)

CPO spot price (RM/tonne) 2,320.00 0.13

Market Indices

Top Actives

Economic Statistics

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Terence WONG, CFA T (60) 3 2261 9088 E terence.wong@cimb.com

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Daybreak│Malaysia

February 11, 2015

2

Global Economic News

Lower oil prices will dent surging US shale oil production in the second half of the year, boosting demand for OPEC's oil and paving the way to a price recovery, the International Energy Agency (IEA) said.

Overall, the IEA expects non-OPEC oil supply to grow by just 800,000 barrels a day this year, compared with an increase of nearly 2 million barrels a day in 2014.

IEA also expects demand for OPEC's oil to rise to 30.2 million barrels a day in the second half of this year, just above the group's self-imposed production quota. (WSJ)

US wholesale inventories rose 0.1% in Dec (+0.8% in Nov) as lower crude oil prices depressed the value of petroleum stocks in Dec. Still, the economic outlook remains buoyant, with other data on Tuesday showing job openings in Dec vaulting to their highest level since early 2001. (CNA)

The US will remain the world's top source of oil supply growth up to 2020, even after the recent collapse in prices, the International Energy Agency said, defying expectations of a more dramatic slowdown in shale growth. The agency also said in its Medium Term Oil Market report that oil prices, which slid from US$115 a barrel in June to a near six-year low close to US$45 in Jan, would likely stabilise at levels substantially below the highs of the last three years. The report said supply growth of US light, tight oil (LTO) will initially slow to a trickle but regain momentum later, bringing its production to 5.2m barrels per day (bpd) by 2020. (AFP)

Greece's new leftist government was fine-tuning a 10-point plan on Tuesday (Feb 10) in hopes of persuading its international creditors to rethink their "barbaric" bailout terms and prevent the country from crashing out of the eurozone. Tsipras is pushing for creditors to soften the tough conditions of the €240bn (US$270bn) bailout that Greece was forced to accept in the aftermath of the financial crisis, to boost its economy through spending. (CNA)

Japan’s tertiary industry activity was down a seasonally adjusted 0.3% mom in Dec (+0.2% mom in Nov). (RTT)

Japan’s M2 money stock was up 3.4% yoy in Jan (+3.6% yoy in Dec). The M3 money stock rose 2.8% yoy in Jan (+2.9% yoy in Dec). (RTT)

China's inflation plunged to 0.8% in Jan, its lowest level for more than five years. The rise in the consumer price index (CPI) was sharply down from the 1.5% recorded in Dec, and was the weakest since 0.6% recorded in Nov 2009. It came in short of median forecast of 1%. (AFP)

China's outstanding total social financing (TSF), a broad measure of liquidity in the economy, rose to RMB122.86tr (US$19.7tr) at the end of 2014, up 14.3% yoy. This is the first time the People's Bank of China has released data on outstanding TSF, which captures lending outside traditional loans, such as trust loans and other forms of shadow financing. The central bank said outstanding TSF has kept an annual average growth of 19.3% since 2002, 2.7% pts faster than loan growth. (CNA)

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February 11, 2015

3

Australia’s National Australia Bank (NAB) Monthly Business Survey showed business confidence edged higher to 3 points in Jan (2 points in Dec). Business conditions held steady at 2 points in Jan, unchanged from Dec. (ABC, Bloomberg)

South Korea's gross tax revenue came to KRW298.7tr in 2014, a gain of 5.8tr from 2013, but was KRW11tr short of the budget target of KRW309.7tr. (Yonhap)

Indonesia’s retail sales grew 4.3% yoy in Dec (+11.4% yoy in Nov). (Jakarta Post)

Philippines exports dropped 3.2% yoy to US$4,800.6m in Dec (+21.7% yoy to US$5,262m in Nov). (Financial Times)

Indonesia’s government has imposed a safeguard duty on imported construction steel. The measure is set to last for three years, from 21 Jan 2015 to 20 Jan 2018.

In the initial year, the products affected — I-shaped and H-shaped sections — will be charged with safeguard duties set at 28% of their prices. The import duties will be lowered to 26% and 18% respectively in the second and the third years. (Jakarta Post)

Indonesia’s annual retail sales grew 4.3% in Dec (+11.4% in Nov). (Jakarta Post)

Philippines exports dropped 3.2% yoy to US$4800.6m in Dec (+21.7% yoy to US$5262m in Nov). (Financial Times)

Malaysian Economic News

The industrial production index rose 7.4% yoy in Dec (+4.8% yoy in Nov), data from the Statistics Department showed.

Growth for Dec’s factory output was underpinned by positive growth in the manufacturing, mining, and electricity sectors, the department said. The index rose 5.8% yoy in 4Q14 (+4.7% yoy in 3Q14). (Financial Daily)

For further details, kindly refer to our Economic Update

Bank Negara Malaysia's (BNM) international reserves amounted to RM386.5bn (equivalent to US$110.6bn) as at Jan 30, 2015. The central bank, in a statement, said the reserves position was sufficient to finance 7.9 months of retained imports and was 1.1 times the short-term external debt. (Bernama)

For further details, kindly refer to today’s Economic Update.

It is important for each and every country to take the right step to face the current global economic challenges, said Second Finance Minister, Datuk Seri Husni Hanadzlah. Husni said this was essential as the positive outcome and result achieved by each country, in aggregate, would contribute towards a robust, sustainable and balanced global growth. He said in facing the current challenges, the countries must not forget the long-term economic growth.

Daybreak│Malaysia

February 11, 2015

4

"However, to achieve significant result may require changes to meet the requirement of contemporary economy. The countries must also enhance their economic fundamentals to overcome future economic shock," he said. (Bernama)

The government is considering setting up a Housing Guarantee Corporation which will manage Housing Guarantee Schemes to protect buyers and housing developers pertaining to abandoned housing projects.

He said based on early calculations, the Housing Guarantee Scheme was expected to require some RM400m, with the government injecting an initial capital of RM280m. (Bernama)

The price of 25 types of goods declined by one to 18% from Jul 2014 to Jan 2015. Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek said they include raw materials, foodstuff and personal hygiene equipment.

The price of processed standard chicken dropped from RM7.33 per kg in Jul to RM6.73 per kg. Other items which saw a decline are chicken wings (18.25%), mandarin oranges (16.50%); white shrimp (2.01%), potato (6.17%); Rambutan SST 5% rice (0.12%) and Chinese shallot (4.94%). (Bernama)

Several major businesses and restaurants have agreed to cut pricing by up to 5% as a result of the lower fuel prices.

Among those present were members of the Federation of Malaysian

Manufacturers, Malaysia Retailers Association, Federation of

Malaysian Vegetable Sellers Associations, Persatuan Pengusaha

Restoran Muslim Malaysia (Presma) and Persatuan Pengusaha

Restoran India Malaysia (Primas). Domestic Trade, Cooperatives and

Consumerism Minister Datuk Seri Hasan Malek said more traders

were expected to cut prices in the coming weeks. (Star)

The plunge in global oil prices will not impact the implementation of ASEAN Economic Community (AEC), said Deputy Minister of International Trade and Industry, Datuk Ir Hamim Samuri. He said plans for ASEAN to declare itself as a single economic community were moving ahead with speed. "We are convinced that even the global slump in oil prices will not have an adverse effect towards the realisation of the AEC," he said. "We aim for ASEAN member states to complete 95% of the integration measures by that date," he said. (Bernama)

Malaysia's vibrant private sector economy and stable political environment have provided the opportunity for the country to emerge as a gateway for China's investments in Asean, said Transport Minister Datuk Seri Liow Tiong Lai.

He said these factors position Malaysia in a more competitive environment and make the country a stepping stone for China's investments in the region.

"China will also be able to tap into our uniquely multi-cultural talent pool that is a reflection of the world's greatest civilisations and religions, which is an advantage for a better understanding of the region," he said. (Bernama)

Daybreak│Malaysia

February 11, 2015

5

In the face of a crisis, decisions made must be strategic, not tactical or short-term that only soothe the symptoms but not the underlining fundamental ills, former Finance Minister Tun Daim Zainuddin said. He said although Malaysia is not in a crisis yet, it would serve the nation well to pay attention to investigate what a crisis "looks and sounds" like and come up with the best possible response. (Bernama)

Indian tourists visiting Malaysia grew by an impressive 20.7% growth in the first 10 months last year. According to Tourism Malaysia, during Jan-Oct 2014, 643,335 Indian tourists visited Malaysia (532,964 during Jan-Oct 2013).

Deputy director-general of Tourism Malaysia Datuk Azizan Noordin said some 1.04m visitors from the Indian sub-continent, India, Pakistan, Nepal and Bangladesh, visited Malaysia during the same period. (Bernama)

Prime Minister Datuk Seri Najib Tun Razak launched the Malaysian Syariah Index, a product that complements Islamic governance through a more comprehensive syariah requirement yardstick.

The index, the first of its kind ever developed in the world, evaluated and assessed the government's seriousness in achieving the five aspects of the 'Syariah Maqasid' or syariah requirement namely the protection of the religion, protection of life, protection of the mind, protection of the race and protection of property. Najib said the uniqueness of the index was that its measurement was more comprehensive because in the initial phase it covered eight major areas namely legal, politics, economy, education, health, culture, infrastructure and environment, and social. (Bernama)

The issue of a surge in the price of goods can be resolved if the rights of consumers are fully exercised, says Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor.

He said most of the consumers expected businesses to offer a variety of goods and services at competitive market prices. "However, it is up to the consumer to carefully choose products and services at affordable prices and express any concern to the government or businesses if the products or services do not meet their expectations. As such, the consumer has the right to choose and be heard," he said. (Bernama)

Standard & Poor’s Financial Services LLC (S&P) has affirmed Malaysia’s short-term foreign currency sovereign credit rating at ‘A-2’ and its long-term rating at ‘A-’, with a stable outlook on the long-term rating, as it expects the fall in oil prices will not disrupt Malaysia’s long-term fiscal consolidation.

“We believe the economy can withstand some weakness in the energy sector owing to its fairly diversified and broad-based growth,” said S&P. Based on that rationale, it also affirmed its long-term ‘A’ and short-term ‘A-1’ local currency ratings on Malaysia, as well as its ‘axAAA/axA-1+’ ASEAN regional scale rating on Malaysia.

S&P expects the government to maintain its long-term target to balance the federal budget by 2020. It also noted that Malaysia has a high degree of monetary flexibility, and that its central bank’s track record in controlling inflation indicates strong monetary flexibility that attenuates major economic shocks. “Malaysia also has a deep domestic bond market, compared with most of its peers, which reduces its reliance on external financing,” it added. (Financial Daily)

Daybreak│Malaysia

February 11, 2015

6

Perak has approved seven incentives for the development of new industrial estates and the upgrading of existing ones. The incentives include fast-tracking the development of selected new industrial estates, allowing foreign and local developers to hold up to 100% equity in the project, and allowing them to manage the area as a park manager or park operator.

"They also include a nominal premium on land for local and foreign developers, and deferring the payment of land tax and assessment for developers until ownership of the industrial site is transferred to the buyer," he said at a news conference here today.

"The proposed assessment is 10%. The state government is also giving a 10-30% discount on the premium for converting from agricultural to industrial status.

Mohamad Zahir said the incentives complement the federal government's tax incentives announced in Budget 2015 to encourage the private sector to manage, maintain and upgrade industrial estates in less developed areas. (Bernama)

The Johor Domestic Trade, Cooperatives and Consumerism Ministry (PPDNKK) office will add 42 more enforcement officers to monitor traders who might increase the price of goods after the Goods and Services Tax (GST) is imposed on 1 Apr. This, he said, would increase the number of enforcement officers in the state to 229. (Bernama)

Political News

The Federal Court here yesterday ruled that Opposition Leader Datuk Seri Anwar Ibrahim sodomised his former aide Mohd Saiful Bukhari Azlan, and thus upheld the conviction and five-year jail term imposed on the politician by the Court of Appeal.

Chief Justice Tun Arifin Zakaria, who led a five-member panel, said the unsworn statement by the appellant (Anwar), which evidentially carried little weight, and the evidence adduced through his witnesses failed to cast any reasonable doubt on the prosecution's case.

"We (the panel) are thus convinced beyond reasonable doubt that the first prosecution witness (Mohd Saiful) had been sodomised by the appellant (Anwar) as charged," said Justice Arifin, reading out a 54-page summary judgment.

He said the panel also agreed with the Court of Appeal that Anwar had not created any reasonable doubt on the prosecution's case and, therefore, the prosecution had established its case beyond reasonable doubt. "The appeal against the conviction is dismissed. Accordingly, we affirm the decision of the Court of Appeal in convicting the appellant (Anwar)," he said. (Bernama)

The Coalition for Clean and Fair Elections (Bersih 2.0) has expressed its disappointment with the Federal Court today following the verdict against Opposition leader Datuk Seri Anwar Ibrahim in his Sodomy 2 case and described it as "a black eye for judicial independence".

In a media statement released by the coalition, it said that the court used the "flimsiest of arguments" and had disregarded "other serious flaws in the case". "Make no mistake, it has been a political trial from Day One, and the verdict underscores this.

"Further, the five-year prison sentence meted out to Anwar has effectively ended the political career of the person who would have been our Prime

Daybreak│Malaysia

February 11, 2015

7

Minister were our elections free and fair," said Bersih 2.0, as quoted from the statement. (The Rakyat Post)

Hours after Anwar Ibrahim was taken to the Sungai Buloh prison, the question on who will replace him as opposition leader has surfaced. According to party sources, DAP wants its supremo Lim Kit Siang to be appointed.

PKR secretary-general Rafizi Ramli confirmed that DAP had previously conveyed this to them but said any final decision would only be known after the Pakatan Rayat leadership meeting, tentatively slated for Friday.

DAP national organising secretary Anthony Loke declined to confirm or deny the matter. "The question of the opposition leader will be discussed at the Pakatan leadership council and we will put forward our arguments then. Loke said regardless of DAP's arguments, its priority is to ensure that the opposition coalition can remain intact.

Rafizi said within PKR itself, the party too has not discussed about its candidate for the opposition leader post. However, he added that DAP may be willing to concede if PKR president Dr Wan Azizah Wan Ismail returns to Parliament and takes up the position of opposition leader.

Rafizi also revealed that in previous Pakatan discussions, there have been proposals that the opposition leader be appointed on a rotation basis between DAP, PKR and PAS. However, he said tonight's Pakatan meeting, which is at the secretary-general level, will focus on providing direction to supporters. (Malaysiakini)

Former Finance Minister Tun Daim Zainuddin expects growing demand from China, India and Africa to lift crude oil prices to between US$65 and US$70 per barrel this year with the rebound expected in June. However, crude oil price would not return to US$100 per barrel as previously.

On 1MDB, he said the Government needed to clear some of the confusion surrounding it. "Why is so much money borrowed? The rakyat want to know, and I think there is no harm to being truthful. He added that 1MDB's debt was one of the factors causing the weakening of the ringgit. (Starbiz)

On the banking sector's role in turbulent times, Daim said banks need to be financially strong and well-capitalised to weather the tough times. He added that the recent failed merger among CIMB Group Holdings, RHB Capital and Malaysia Building Society should not hinder future consolidation efforts in the banking industry. (Starbiz, Financial Daily)

Corporate News

Palm oil exports from Malaysia, the world’s biggest producer after Indonesia, slumped the most in seven years in January as a plunge in energy prices and record global oilseed supply cut demand. Sales decreased 22% to 1.18m metric tons from a month earlier, the Malaysia Palm Oil Board said. That’s the biggest drop since January 2008 and the least shipped since February 2011, MPOB data show. Production tumbled 15% to 1.16m tons, the lowest level since February 2011, and reserves fell 12% to 1.77m tons, palm oil board data show. (Bloomberg)

Please refer to our note for details.

Daybreak│Malaysia

February 11, 2015

8

Malaysia Airports Holdings Bhd (MAHB) recorded 8.54m passenger movements in January 2015, up 22.4% yoy due to the inclusion of its Turkish airport Istanbul SGIA, following a takeover exercise. However, on a like-for-like basis, MAHB saw a marginal drop of 0.5% yoy in passenger movements in January 2015. International and domestic sectors for January 2015 declined by 0.8% and 0.3% respectively over January 2014. According to a MAHB, the 0.5% “like-for-like decline” was partly affected by the shift of the Chinese New Year festive season from January in 2014 to February in 2015, aside of the unusually high base of a 25.8% growth year-on-year experienced in January 2014.

Kuala Lumpur International Airport (KLIA) recorded 4m passenger movements in January 2015, down 5.7% yoy. "International and domestic sectors declined by 3% and 12.5% respectively. KLIA Main Terminal passenger traffic declined by 11.7% while klia2 compared with LCCT, increased by 1.1%," it said. (Financial Daily)

Puncak Niaga has agreed with Pengurusan Air Selangor Sdn Bhd to a second extension to 9 Mar of the 'stop date' for the hand over of the former's water concession business as well as Syarikat Bekalan Air Selangor Sdn Bhd (Syabas) to the Selangor government. Puncak said there are still pending issues related to the transfer between the Selangor and federal governments as well as the consent from Unit Kerjasama Awam Swasta of the Prime Minister's Department on the sale of Syabas.

Puncak's COO Datuk Syed Danial Syed Ariffin urged both parties to resolve the matter immediately, saying it affects the level of services and management of the water supply system. (Bernama)

Cypark Resources Bhd's co-founder and group CEO Datuk Daud Ahmad's stake in the renewable energy player may increase to a maximum 14.8% from 7.8% he currently holds via a 10% private placement. The company proposed to place out up to 40.98m new Cypark shares, representing 20% of its share capital, to Daud and third-party investors to raise up to RM70.1m, based on the indicative issue price of RM1.71/share.

Should Daud subscribe to the other 10% of the placement shares if the company is unable to identify the third-party investors, his stake could rise to as much as 23.2%. On the other hand, Cypark's single largest shareholder and executive chairman Tan Sri Razali Ismail's stake in the company could be diluted to as low as 20.65%. (StarBiz)

Malaysian bankers will trigger an event of default (EOD) if state strategic investor 1Malaysia Development Bhd (1MDB) fails to repay RM2bn loan for its power unit taken in May 2014, say sources. The loan has been rolled over twice with the last deadline being last month and is part of a RM5.5bn debt taken by a unit of the company wholly owned by the Finance Ministry. Maybank has 58.99% of the RM2bn loan while RHB has 32.41%. The other lenders are Alliance Investment Bank Bhd (4.06%), Malaysia Building Society Bhd (3.24%) and Hwang DBS Investment Bhd (1.29%). (Malaysian Insider)

Under the Securities Commission’s (SC) new framework for equity crowdfunding (ECF) platforms, eligible issuers can raise up to RM3mil within a 12-month period. It said that issuers would be able to tap on investments from retail, sophisticated as well as angel investors, subject to the investment limits as provided in the guidelines, which were effective yesterday. (StarBiz)

Daybreak│Malaysia

February 11, 2015

9

To compete more effectively with prominent fast-food chains like McDonalds and KFC (KFC Holdings Bhd), Brahim’s Holdings Bhd will need to take measures to revive loss-making Burger King franchise in Malaysia and Singapore after the proposed acquisition. The inflight catering company together with private equity fund Quantum Angel intend to buyout the fast-food franchise for RM95m cash from Rancak Selera Sdn Bhd, a unit of Ekuiti Nasional Bhd. Rancak Selera is the holding company for Cosmo Restaurants Sdn Bhd and Burger King Singapore Pte Ltd, both of which hold the Burger King franchise in Malaysia and Singapore respectively.

Under the proposed acquisition plan, Brahim’s wholly-owned subsidiary Brahim’s Trading Sdn Bhd and Quantum Angel will form a special purpose vehicle (SPV) to take over the franchise. Brahim’s will hold 80% and Quantum Angel the balance 20% in the SPV. (Financial Daily)

Food company Hup Seng Industries Bhd made a net profit of RM12.6m in the fourth quarter of its financial year ended Dec 31, 2104 (4QFY14), up 34.8% from RM9.4m in the previous corresponding period. Hup Seng attributed the growth in earnings to increased domestic and export sales on the back of robust growth in demand for its Cream Crackers. According to a filing of the company’s 4Q14 results on Bursa Malaysia, revenue rose 10.4% to RM73.7m compared to RM66.7m in 4QFY13. (Financial Daily)

Paramount has unveiled its RM260m KDU University College (KDUUC) flagship campus at Utropolis in Glenmarie, Shah Alam. The opening of the campus marked a new phase of growth not just for KDUUC but also for the 32-year old Paramount Education, formerly known as the KDU Education Group. CEO Jeffrey Chew said the opening of the new campus also marked the re-establishment of KDU College in Damansara Jaya. (Bernama)

CME Group Bhd has entered into a joint-venture with Tanah Mestika Sdn Bhd to undertake a mixed development with a gross development value of RM124.42m in Kuantan, Pahang. The leasehold land measuring about 5,936 sq m is located next to CME's existing investment properties of 59 units of three storey shop lot offices In Bandar Indera Mahkota. Tanah Mestika will develop the land, bought by CME for RM6m in 2013, at an estimated gross development cost of the project is RM100.17m. In consideration for the proposed JV, the landowner shall be entitled to a certain number of buildings built on the land with an equivalent value of RM10m. (sun)

Ford Motor achieved record sales for its entire line-up in Malaysia in Jan as retail sales jumped 38% yoy to 1,544 units. The record sales were fueled by the continuing demand for the Ranger pickup truck Fiesta and the EcoSport compact suburban utility vehicle. "The Ranger pickup continued to be our best-selling nameplate in Malaysia and delivered a record performance with retail sales surging 87% yoy to 1,169 units. Jan also saw the opening of an upgraded Ford facility in Batu Pahat, Johor, which offers service, spare parts and sales under one roof," it said. (Bernama)

Daybreak│Malaysia

February 11, 2015

10

BMSB: Changes in shareholdings

Type of No of Ave Price

10-Feb-15 Date transaction securities Company (RM)

EPF 5/2 Disposed 3,000,000 YTL CORPORATION

EPF 5/2 Disposed 2,331,400 SIME DARBY

EPF 5/2 Disposed 2,000,000 IOI CORPORATION

EPF 5/2 Disposed 1,508,600 PUBLIC BANK

EPF 5/2 Disposed 1,000,000 CAPITAMALLS MALAYSIA TRUST

EPF 4/2 Disposed 993,500 UMW HOLDINGS

EPF 5/2 Disposed 878,200 IOI PROPERTIES GROUP

EPF 5/2 Disposed 800,000 SUNWAY BERHAD

EPF 5/2 Disposed 684,300 YTL POWER INTERNATIONAL

EPF 5/2 Disposed 500,000 GAMUDA

EPF 5/2 Disposed 500,000 IGB CORPORATION

EPF 5/2 Disposed 465,300 EASTERN & ORIENTAL

EPF 5/2 Disposed 411,400 KUALA LUMPUR KEPONG

EPF 5/2 Disposed 321,700 AXIS REIT

EPF 4/2 Disposed 318,900 MISC

EPF 5/2 Disposed 300,000 LAFARGE MALAYSIA 

EPF 5/2 Disposed 300,000 MAXIS

EPF 5/2 Disposed 201,500 TOP GLOVE

EPF 5/2 Disposed 197,800 CAHYA MATA SARAWAK

EPF 5/2 Disposed 179,400 PAVILION REIT

EPF 5/2 Disposed 49,100 FELDA GLOBAL VENTURES

EPF 5/2 Disposed 33,700 ORIENTAL HOLDINGS

EPF 5/2 Disposed 32,900 AEON CO. (M)

EPF 5/2 Disposed 3,800 MAH SING GROUP

Skim Amanah Saham Bumiputera 5/2 Disposed 133,700 SUNWAY REIT

Kumpulan Wang Persaraan 5/2 Disposed 131,200 TIME DOTCOM

HSC Healthcare Sdn Bhd 9/2 Disposed 1,000,000 SIGNATURE INTERNATIONAL

Mitsubishi UFJ Financial Group, Inc 5/2 Disposed 24,000 TASEK CORPORATION

EPF 5/2 Acquired 3,000,000 AMMB HOLDINGS

EPF 5/2 Acquired 2,647,400 DIGI.COM

EPF 5/2 Acquired 2,580,400 MALAYAN BANKING

EPF 5/2 Acquired 2,448,000 CIMB GROUP

EPF 5/2 Acquired 1,499,400 TELEKOM MALAYSIA

EPF 5/2 Acquired 938,500 IJM CORPORATION

EPF 29/1-5/2 Acquired 780,900 KOSSAN RUBBER INDUSTRIES

EPF 29/1-5/2 Acquired 439,100 KPJ HEALTHCARE

EPF 5/2 Acquired 406,000 PUNCAK NIAGA

EPF 5/2 Acquired 372,100 DIALOG GROUP

EPF 5/2 Acquired 94,100 SAPURAKENCANA PETROLEUM

EPF 5/2 Acquired 85,300 MALAYSIA AIRPORTS

EPF 5/2 Acquired 76,000 HARTALEGA HOLDINGS

EPF 5/2 Acquired 33,800 TIME DOTCOM

EPF 5/2 Acquired 2,200 NESTLE (MALAYSIA)

Skim Amanah Saham Bumiputera 4/2 Acquired 972,000 SIME DARBY

Skim Amanah Saham Bumiputera 5/2 Acquired 675,700 TELEKOM MALAYSIA

Skim Amanah Saham Bumiputera 5/2 Acquired 166,700 LAFARGE MALAYSIA 

Permodalan Nasional Berhad 4/2 Acquired 1,000,000 UMW HOLDINGS

Permodalan Nasional Berhad 4/2 Acquired 972,000 SIME DARBY

Kumpulan Wang Persaraan 5/2 Acquired 1,083,300 UZMA

Kumpulan Wang Persaraan 4/2-5/2 Acquired 955,600 GAMUDA

Kumpulan Wang Persaraan 4/2-5/2 Acquired 388,200 PRESTARIANG

Kumpulan Wang Persaraan 5/2 Acquired 300,000 TOP GLOVE

Kumpulan Wang Persaraan 5/2 Acquired 271,500 POS MALAYSIA

Kumpulan Wang Persaraan 4/2 Acquired 227,000 KULIM (MALAYSIA)

Kumpulan Wang Persaraan 4/2 Acquired 127,500 PETRONAS GAS

Kumpulan Wang Persaraan 4/2-5/2 Acquired 42,900 FELDA GLOBAL VENTURES

Lembaga Tabung Haji 5/2 Acquired 1,240,100 TH PLANTATIONS

QL Resources 5/2-9/2 Acquired 18,000 LAY HONG 3.42

Mitsubishi UFJ Financial Group, Inc 5/2 Acquired 411,200 CIMB GROUP SOURCES: BMSB

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BMSB: Off-market transactions

10-Feb-15 Vol

WINTONI 24,800,000

INSTACO 15,000,000

TGOFFS 8,944,800

MEDAINC 6,000,000

ECOFIRS 4,670,000

SKPRES 4,100,000

SMPC 3,776,411

JETSON 2,163,000

TENAGA 1,250,000

FLBHD 500,000 Notes:CN-Crossing deal on board lots, MN-Married deal on board lots, MO-Married deal on odd lots

SOURCES: BMSB

BMSB: Entitlements & trading rights

11-Feb-15 Ann Date Entitlement Ex-date Entitlement

ASIA FILE CORP 6-Aug-14 Bonus issue 3:5 18-Feb-15 24-Feb-15

MALAYSIA

AIRPORTS

28-Nov-14 Right issue 1:5 @ RM4.78 24-Feb-15 26-Feb-15 SOURCES: BMSB, TE: Tax Exempt

BMSB: Dividends

Company Particulars Gross DPS (Sen) Ann Date Ex-Date Lodgement Payment

SUNWAY REIT Second Income Distribution 2.27 28-Jan-15 12-Feb-15 16-Feb-15 3-Mar-15

PUBLIC BANK Second interim dividend - single tier 31.00 5-Feb-15 18-Feb-15 24-Feb-15 5-Mar-15

KUALA LUMPUR KEPONG Final dividend - single tier 40.00 19-Nov-14 19-Feb-15 23-Feb-15 17-Mar-15

MISC Second interim dividend - single tier 6.00 6-Feb-15 24-Feb-15 26-Feb-15 11-Mar-15

MAXIS Interim dividend - single tier 8.00 6-Feb-15 25-Feb-15 27-Feb-15 27-Mar-15

DIGI.COM Interim dividend - single tier 7.20 9-Feb-15 25-Feb-15 27-Feb-15 13-Mar-15

GUINNESS ANCHOR Interim dividend - single tier 20.00 5-Feb-15 27-Mar-15 31-Mar-15 22-Apr-15 SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

11-Feb-15 Ann Date Proposed

ECO WORLD 25-Apr-14 1 Rights @ 2, 4 Free Warrants @ 5, Private Placement

BUMI ARMADA 12-Sep-14 1 Rights : 2 shares @ RM1.35

MAH SING GROUP 20-Nov-14 Bonus issue 1:4

AIRASIA X 30-Nov-14 Rights issue of RM0.15 with free detachable warrants SOURCES: BMSB

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Corporate Actions

February 2015

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7

Federal Territory Day Replacement Holiday Thaipusam Guinness 2Q & briefing,

Public Bank 4Q & briefing, MMHE 4Q, Trade Balance, Imports, Exports

Maxis 4Q & conf. call, MISC 4Q & conf. call,

Foreign Reserves

8 9 10 11 12 13 14

DiGi 4Q & conf. call, Dialog 2Q

Hartalega 3Q, F&N 1Q, IPI,

Manufacturing Sales

Westports 4Q & briefing,

Daibochi 4Q

PetDag 4Q, SBC 3Q, Wah Seong 4Q,

Unisem 4Q & briefing, Daibochi 4Q briefing, GDP, BoP Current Account Balance

MAHB 4Q & briefing, Magnum 4Q,

Signature 2Q

15 16 17 18 19 20 21

BAT 4Q, Mah Sing 4Q, KLK 1Q

IFCA 4Q CPI Chinese New Year Chinese New Year 2nd Day

22 23 24 25 26 27 28

UMW-OG 4Q, Nestle 4Q

Foreign Reserves (mid-month data)

Perdana 4Q, Perisai 4Q,

Tan Chong 4Q, UOA Dev 4Q, QL Res 3Q, Carlsberg 4Q,

Kossan 4Q, Prestariang 4Q, Media Prima 4Q & briefing

Axiata 4Q & conf call, TM 4Q & conf. call,

UEM Sunrise 4Q, UMW 4Q, Tomypak 4Q, Thong Guan 4Q,

Karex 2Q, Sime Darby 2Q & briefing, MCIL 3Q, Uchi 4Q, Uzma 4Q

E&O 3Q, Eksons 3Q, Star 4Q,

UEM Sunrise 4Q briefing, Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

March 2015

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7

Star analyst briefing BNM OPR Exports, Imports Trade Balance, Foreign Reserves

8 9 10 11 12 13 14

SP Setia 1Q IPI, BNM OPR, Manufacturing Sales

15 16 17 18 19 20 21

CPI Foreign Reserves (mid-month data)

22 23 24 25 26 27 28

29 30 31

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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

Corporate Governance Report:

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

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

Description: Excellent Very Good Good N/A

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

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

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

Daybreak│Malaysia

February 11, 2015

18

CIMB Recommendation Framework

Stock Ratings Definition:

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

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

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

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

Sector Ratings Definition:

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

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

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

Country Ratings Definition:

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

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

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

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