May 19, 2015 Malaysia SECTOR RESEARCH | SEE PAGE 23 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS PP16832/01/2013 (031128) Malaysia Property Post-GST survey Cautious buying mood prevails. Policy easing unlikely. Financing remains as the key issue. The sector lacks of strong re-rating catalysts. Maintain NEUTRAL, only BUY is SP Setia (SPSB). What’s New At the recent Home & Property Investment Fair by iProperty.com, we conducted our own survey on 35 randomly selected visitors, in addition to conversations with property developers‟ sales forces. Our findings: 1) 63% of the respondents intended to buy at least one property over the next 12 months. 2) Most already have at least one property in hand and were looking for new properties mainly for investment purposes. 3) Many admitted that they were facing difficulties in securing mortgage loans. 4) Landed property was still the preferred property type. 5) Due to pricing issue, many opted to stay in sub-urban areas. 6) Most respondents believe that property prices will trend up over the next twelve months. 7) Top concerns are pricing and financing. 8) Attractive discounts/ incentives were still being offered by the developers. What’s Our View While demand trend and buyers‟ concerns remain the same as our last survey in July 2014, we sense a more cautious buying mood now. We observed that demand on landed properties priced below MYR1m/unit stays firm. Downside risks for the developers include: 1) higher-than-expected GST provisioning which would put pressure on operating margins and 2) weaker-than-expected sales. Policy easing is unlikely, we believe. Presently, property stocks under our coverage trade at an average 35-63% discount to our RNAV estimates, which we believe fairly reflect their near-term outlook. Our strategy remains a defensive one in view of a more prolonged downcycle in demand which could last between 9-24 months. SPSB is our only pick for the sector. We like its earnings defensiveness and 4.4% net yield. Analyst Property sector – Peer valuation summary Stock Rec Shr px Mkt cap TP PER (x) PER (x) PER (x) P/BV (x) P/BV (x) ROE (%) ROE (%) Net yield (%) MYR MYR m MYR CY14A CY15F CY16F CY14A CY15F CY14A CY15F CY15F Eco World Hold 1.73 3,408.5 1.95 61.1 47.6 22.6 1.3 1.1 2.1 2.4 0.5 Glomac Hold 0.95 690.5 1.03 7.9 6.4 5.0 0.7 0.7 9.4 10.8 6.0 Mah Sing Hold 2.15 4,129.0 2.22 9.2 10.2 8.8 1.4 1.1 15.0 13.8 4.6 SP Setia Buy 3.46 8,796.3 4.07 20.7 12.9 10.6 1.1 1.1 7.1 11.0 5.7 Sunway Hold 3.55 6,207.7 3.29 10.9 10.9 11.4 1.0 1.0 10.0 9.2 1.9 UEM Sunrise Hold 1.21 5,490.3 1.27 11.4 16.4 13.4 0.9 0.8 7.6 5.1 2.4 Simple avg 4,787.0 20.2 17.4 12.0 1.1 1.0 8.5 8.7 3.5 Source: Maybank KE (Unchanged) NEUTRAL Wong Wei Sum, CFA (603) 2297 8679 [email protected]
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May 19, 2015
Mala
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SEC
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SEE PAGE 23 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS PP16832/01/2013 (031128)
Malaysia Property
Post-GST survey Cautious buying mood prevails.
Policy easing unlikely. Financing remains as the key issue.
The sector lacks of strong re-rating catalysts. Maintain
NEUTRAL, only BUY is SP Setia (SPSB).
What’s New At the recent Home & Property Investment Fair by iProperty.com,
we conducted our own survey on 35 randomly selected visitors, in
addition to conversations with property developers‟ sales forces.
Our findings: 1) 63% of the respondents intended to buy at least one
property over the next 12 months. 2) Most already have at least one
property in hand and were looking for new properties mainly for
investment purposes. 3) Many admitted that they were facing
difficulties in securing mortgage loans. 4) Landed property was still
the preferred property type. 5) Due to pricing issue, many opted to
stay in sub-urban areas. 6) Most respondents believe that property
prices will trend up over the next twelve months. 7) Top concerns
are pricing and financing. 8) Attractive discounts/ incentives were
still being offered by the developers.
What’s Our View While demand trend and buyers‟ concerns remain the same as our
last survey in July 2014, we sense a more cautious buying mood now.
We observed that demand on landed properties priced below
MYR1m/unit stays firm. Downside risks for the developers include:
1) higher-than-expected GST provisioning which would put pressure
on operating margins and 2) weaker-than-expected sales. Policy
easing is unlikely, we believe.
Presently, property stocks under our coverage trade at an average
35-63% discount to our RNAV estimates, which we believe fairly
reflect their near-term outlook. Our strategy remains a defensive
one in view of a more prolonged downcycle in demand which could
last between 9-24 months. SPSB is our only pick for the sector. We
like its earnings defensiveness and 4.4% net yield.
1) Buyers sentiment weakens, financing is an issue
While 77% of the respondents expected property prices to trend up further,
only 63% intended to buy at least one property over the next 12 months (a
decline from our previous pre-GST survey of 80% in June 2014 involving 30
respondents) as some of the respondents are adopting a wait-and-see
attitude. Close to half of the respondents (46%) faced difficulties in
securing mortgage loans.
Elsewhere, price discounts/rebates ranging from 5%-17% (depending on
furnishing/renovation packages chosen; GST will be charged on the
furnishing/renovation packages for residential properties) were offered
during the property fair, we observed.
Our views:
Confirm no rush into property purchases pre-GST. During our 2-days
at the property fair, we observed the fair had thinner crowds and was
relatively quiet as compared to what we observed in the previous fairs
in June 2014 and July 2013. Our conversations with property agents/
sales staff confirmed a known fact - that actual sales have been
lacklustre since 2H14 and the buying mood have been cautious with
most buyers putting home purchases on hold. A few of the agents/sales
staff admitted that there was no rush into property purchases pre-GST
implementation on 1 April, within our expectation. Key reasons
attributing to the lacklustre sales include tighter lending conditions by
the banks and weaker consumer sentiment on more subdued economic
outlook dragged by lower crude oil prices and the weaker MYR vs. USD.
We remain cautious on the Malaysia property sector and expect the
macro headwinds (GST implementation, volatile crude oil prices) and
prolonged tightening property and lending measures to continue
weighing on buyers‟ sentiment. The slowdown in demand could last
between nine months to two years, we believe.
May 19, 2015 3
Malaysia Property
Property data also shows weakening demand. Claims by the property
agents/sales staff are also confirmed by official figures released by
NAPIC. Latest statistics show that the value of residential property
transactions for the country had fallen by 7% QoQ in 4Q14 (3Q14: +4%
QoQ, 4Q13: +7% QoQ) while on YoY basis, property transactions
recorded a lower growth of 2% (3Q14: +17% YoY, 4Q13: +15% YoY).
Price wise, NAPIC‟s statistics also showed signs of easing with the
House Price Index (HPI) contracting marginally by 0.2% QoQ in 4Q14.
The official numbers provided by NAPIC did not capture the rebates/
discounts provided, we believe. The 1Q15 statistics are expected to be
release in June-July.
Contrary to the general expectation of higher residential property
prices post-GST, we expect flat growth or marginal decline in property
prices as: 1) most developers have already re-priced or re-cost their
products to include GST in 2014, ahead of the GST implementation this
April, 2) property price is a function of market forces – demand and
supply. Developers may have to offer more discounts/rebates to entice
property buyers in a weak market environment and 3) declining
housing affordability (residential properties) may put downward
pressures on property prices. Property price growth of 11% CAGR
between 2009-2014 was above income growth of 6.9%, driven by cheap
financing, ample of liquidity and attractive marketing incentives by
the developers after the global financial crisis.
Malaysia’s residential property transactions up 2% YoY (in value) but down 7% YoY (units) in 4Q14
Source: CEIC
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Unit Value
(YoY growth)
May 19, 2015 4
Malaysia Property
QoQ, Malaysia’s residential property transactions declined by 5% (in units) and 7% (value) in 4Q14
Source: CEIC
Property prices softened: 4Q14 Malaysia House Price Index (HPI) up 7% YoY but down 0.2% QoQ following queue from the decline in property transactions
Source: CEIC
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Unit Value
QoQ growth
80
90
100
110
120
130
140
150
160
170
180
190
200
210
220
230
240
250
260
270
Malaysia KL Selangor Penang Johor
May 19, 2015 5
Malaysia Property
Buyers put off by tougher mortgage checks. Close to half of our
respondents (46%) were facing difficulties in securing mortgage loans
as most of them are below 30 years old (57%; relatively low income
earners) and many already own at least one property (63%). This
implies limited room to gear up for additional properties.
Our conversations with the bankers/sales people during the property
fair revealed that the loan rejection rate remains high at 40-50%
(depending on product types; affordable housing, where the buyers are
largely the first-time/genuine home buyers, has a lower loan rejection
rate) compared to 10-20% in our 2012-2013 surveys. To lower the
cancellation in unit booking on loan rejection, most bankers/sales
people have started conducting brief checks with the potential buyers
on their credit backgrounds, prior to purchase commitments.
The latest banking statistics data are also in line with our findings from
the property fair. The latest data show that residential mortgage and
non-residential loan applications failed to pick up in Mar 2015 before
the implementation of GST in Apr 2015 where the 3-month moving
average (3MMA) was down 3.7% YoY and 0.5% YoY respectively.
Meanwhile, the 3MMA loan approvals also declined YoY for residential
(-4.5%) and non-residential (-1.3%) property. Judging from our survey
and discussions with sales people and developers as well as bankers,
we expect April statistics for residential and non-residential mortgage
applications/approvals to remain in negative growth as buyers appear
to be less inclined to rush into buying properties post-GST.
3M MA (Jan - Mar 2015) residential mortgage applications declined at a slower pace (-3.7% YoY) compared to Nov-Dec 2014 (-17.4 to -17.7% YoY)
3M MA (Jan - Mar 2015) non-residential mortgage applications declined by 0.5% YoY after a positive 2% in Feb 2015
Source: BNM Source: BNM
3M MA residential property approvals down 4.5% YoY 3M MA non-residential property approvals down 1.3% YoY
Source: BNM Source: BNM
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Mar-07 Mar-09 Mar-11 Mar-13 Mar-15
3M MA (YoY chg mortgage application)
(% YoY Chg)
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Mar-07 Mar-09 Mar-11 Mar-13 Mar-15
3M MA (YoY chg in non residential property application)
(% YoY Chg)
-50.0%
0.0%
50.0%
100.0%
3M MA (YoY chg in residential property approvals)
(% YoY Chg)
-50.0%
0.0%
50.0%
100.0%
150.0%
3M MA (YoY chg in non-residential property approvals)
(% YoY Chg)
May 19, 2015 6
Malaysia Property
2) Still investment buying intention despite stricter ruling;
policy easing is unlikely
63% of our respondents already own at least one property and just as many
were looking to buy new properties for investment (57% versus 41% in our
survey in June 2014) instead of for owner occupation.
Our views:
Undeterred by stricter property cooling/lending measures. We were
not surprised by the survey outcome as 57% of our respondents are
aged below 30 years old and are in the beginning stage of wealth
accumulation where real estate is usually a popular investment choice.
Property cooling measures in recent years
Mth-Year Property cooling measures
Jan-10 Budget 2010 reintroduced the RPGT at 5% for properties sold within the first 5
years of sale. This was announced in Sept 2009 and took effect in Jan 2010
Nov-10 LTV ratio for third residential properties reduced from 90% of property value
to 70% (remains at 90% for the first two properties)
Oct-11 Budget 2012 raised RPGT to 10% within first 2 years of sale and maintains at
5% between year 3 and 5 of sale
Jan-12 BNM introduced responsible lending measures where loans are disbursed based
on net income instead of gross income
Sep-12 Budget 2013 raised RPGT to 15% within first 2 years and 10% between year 3
and 5 of sale
Oct-13 Budget 2014 raised RPGT to 30% within first 3 years and 15-20% between year 4 and 5 of sale; ban on developer interest bearing scheme (DIBS); higher floor
price for foreign buyers; developers are required to display detailed selling
prices
Source: BNM, Budget 2010-2014
A cut in interest rate may not boost property demand. Our
economist expects the benchmark overnight policy rate (OPR) to stay
at 3.25% throughout 2015 for now, pending the release of 2Q15 GDP
data in Sep 2015 which would give a better indication on the impact of
the GST on domestic demand and inflation. Even if there is a potential
cut in interest rate, we do not expect a significant impact on property
demand (a 25bp OPR cut would reduce monthly instalment by MYR111
[-3.3%] for a property worth MYR800k assuming 90% loan financing at
an initial base rate of 4.45% and a 35-year loan tenure). In our view,
the key determining factor of property demand for now should be the
ability to secure mortgages, instead of interest rate, which is still
accommodative and attractive. Also, a lower OPR indicates a weaker
economic outlook which may not bode well for buyers‟ sentiment.
Policy easing unlikely. While the property sector has started showing
signs of weakness, we do not expect any policy easing to happen in the
short-term especially when household (HH) debt has remain high at
87.9% of nominal GDP at end-2014. This is despite the central bank‟s
continuous efforts in reining in HH debt expansion and curbing
speculative demand.
May 19, 2015 7
Malaysia Property
Household debt has been on the uptrend since 2008
Source: BNM, CEIC
3) Demand trend is the same - still on the landed
Landed properties priced <MYR1m/unit continue to receive strong demand,
based on our latest survey.
Our views:
Slowdown in luxury/high-rise segments. Our discussions with property
agents/sales staff revealed that the demand for high-rise general/high-
rise luxury properties remain weak especially those priced >MYR1m
each. See Hoy Chan‟s the Potpourri @ Ara Damansara (MYR800psf) was
only 60% sold since its launch in 2014 while another high-rise project in
Jalan Ipoh offers discounts of up to 17% for an semi-furnished unit, we
were told. Most developers under our coverage have continued to
focus on affordable housing and landed properties and put their high-
end/luxury projects on the backburner.
Follow the MRT/LRT lines. Rising prices are barriers to own properties
in the city centre. As such, 40% of the respondents prefer to stay in
sub-urban areas and this could lead to demand on properties with close
proximity to public transportation stations in the sub-urban areas,
albeit public transportation has yet to feature prominently as a
consideration on the Malaysian homebuyers‟ priority list for now.
A few new property hotspots have emerged in the southern Klang
Valley - Kajang, Semenyih, Bangi, Puchong South and Canal City. The
popularity of some of these areas will be enhanced by the upcoming
MRT/LRT lines. Beneficiaries include MKH Bhd (MKH MK), Eco World
Development (ECW MK), Mah Sing (MSGB MK), UEM Sunrise (UEMS MK)
and IOI Properties (IOIPG MK).
May 19, 2015 8
Malaysia Property
4) Aspen Group, a rising star in the northern Malaysia
During our 2-days at the property fair, we observed that Aspen Group‟s
(AG) property booth attracted quite a considerable crowd. Aspen Group is
a Penang-based property development and real estate investment group
with focus on affordable housing. The company, which is seeking for an IPO
listing by end-2015, is one of the largest land owners in Batu Kawan, an
upcoming and new growth area in Penang mainland. Batu Kawan is where
the 2nd Penang Bridge, opened last year, connects from the mainland.
During the property expo, AG showcased its maiden project in Batu Kawan
- Aspen Vision City Phase 1 comprising 441 units of shop offices (MYR776m
in GDV; from MYR1.2m/unit onwards). Phase 1 is 80% booked, we were
told. Aspen Vision City, which has an estimated GDV of MYR8b, will
comprise an IKEA store, a shopping mall, an international school, office
towers, shops, a hospital and hotels. The planned development period is
over 10 years.
Aspen Group’s Aspen Vision City in Batu Kawan
Source: Maybank KE
We were told that Aspen Vision City is 80% booked
Source: Maybank KE
May 19, 2015 9
Malaysia Property
Valuations and recommendations
The sector‟s lacklustre near-term outlook has resulted in a 10.5% fall in the
property index since Nov 2014. While the valuations of some property
stocks appear attractive, we advise investors to be selective, focusing on
those with healthy balance sheets and low exposure to Iskandar Malaysia
hotspots. The sector lacks of strong re-rating catalyst and the demand
slowdown could last for 9-24 months, we believe. Some developers
however expect demand to start picking up in 2H15 instead. The negative
lag impact on earnings will start to feature from 2H16-FY17, we estimate.
We think the most notable downside risks for the developers include: 1)
higher-than-expected GST provisioning which would put pressure on
operating margins. Thus far, SP Setia is the only company under our
coverage that has made provisions for the GST impact on ongoing projects,
and 2) weaker-than-expected sales. Tropicana has recently cut its sales
target by 30% after its weak 1Q15 results, we understand.
That said, we believe at this level, the share prices have already factored
in a lot of negative news flow and expectations for the sector. Hence, the
downside risks highlighted in the preceding paragraph should be contained.
From a top-down approach, we maintain our NEUTRAL call on the sector.
We do not expect any near-term policy changes with regard to mortgage
applications and approvals, and government cooling measures.
Stock wise, property stocks under our coverage are presently trading at an
average 35-63% discount to our RNAV estimates. We advocate investors to
go defensive in stock selection. SP Setia (SPSB MK; BUY; MYR4.07 TP) is our
only BUY pick for the property sector.
SP Setia (SPSB MK; BUY; MYR4.07 TP): We like SPSB for its: 1)
earnings defensiveness backed by MYR10.2b of unbilled sales as at end-
Jan 2015 (1.8x of our FY10/15 revenue forecast) and strategically
located landbank secured at cheap land costs (which allows it to be
more flexible in pricing and product launches in times of uncertainty),
2) dividend payout policy of 50% (which offers a 4.4% net yield for the
current year, based on our earnings estimates). SPSB has been paying
more than 60% of its net profit over the last few years.
The „leadership/management‟ concerns are over, in our view. Staff
turnover has stabilised with a well-planned transition strategy being
executed since last year. A potential M&A is another catalyst.
May 19, 2015 10
Malaysia Property
Valuations
Stocks
Price (MYR/share)*
(a)
RNAV (MYR/share) (b)
P/RNAV TP (MYR/sh)
(b) x (c )
Upside (%)
Rating
Our valuation basis - P/RNAV Current
P/RNAV (x)
Our valuations
- P/RNAV (x) ( c)
Eco World
(ECW MK)
1.73 2.67 0.65 0.73 1.95 12.7 HOLD We value Eco World at 0.73x
P/RNAV (-0.1x to SPSB's historical P/RNAV mean).
While we like its strong
management team and track
record, its high land costs (since most of the land was
acquired during the property
upcycle in 2012-2013) may reduce its flexibility in
competitive pricing during
times of uncertainty. Glomac
(GLMC MK)
0.95 2.07 0.46 0.50 1.03 8.7 HOLD We value Glomac at its
historical P/RNAV mean of
0.5x.
Mah Sing
(MSGB MK)
2.15 3.47 0.62 0.64 2.22 3.3 HOLD We value Mah Sing at 0.64x
P/RNAV (-0.15x below its
historical mean). The discount is to reflect its
considerable exposure (59%
of its remaining GDV as at Sep 2014) to the high-rise
property segment e.g. Icon
City, Southville City
(offices), Puchong land, Southbay City and KKCC.
Mah Sing has the highest foreign shareholdings among
the stocks under our
coverage.
SP Setia
(SPSB MK)
3.46 5.58 0.62 0.73 4.07 17.7 BUY We value SP Setia at a
discounted valuation - 0.73x
P/RNAV, which is 0.1x below its historical mean. Potential
re-rating catalysts include
more clarity from PNB on management succession and
asset injections plans.
Sunway
(SWB MK)
3.55 5.57 0.64 0.590 3.29 -7.4 HOLD Large exposure to the luxury
property segment and Iskandar Malaysia, which is
currently facing stiff
competition with the entry of Chinese developers. We
value Sunway at its historical
P/RNAV mean of 0.59x. As
compared to UEMS, Sunway has a more diversified and
recurring earnings base.
UEM
Sunrise
(UEMS MK)
1.21 3.26 0.37 0.39 1.27 5.1 HOLD Large exposure to the
increasingly crowded
Iskandar Malaysia while its Klang Valley projects are
mostly high-end products.
We value UEM Sunrise at
0.39x P/RNAV (-0.2x below its historical mean).
* as at 18 May 2015
Source: Maybank KE
May 19, 2015 11
Malaysia Property
Foreign shareholdings for stocks under our coverage remain flat / declining
June 14 July 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 2014 Jan 15 Feb 15 Mar 15 Apr 15
Glomac Mah Sing SP Setia Sunway^ UEM Sunrise Eco World(%)
May 19, 2015 12
Malaysia Property
Our April 2015 survey: Respondents’ profile
Respondents’ profile: Mostly locals Age profile: Well split between the young and middle-aged
Source: Maybank KE Source: Maybank KE
Job profile: Judging from the job profile, 60% of our respondents (business men, managers and professionals) could be the high-income earners
Number of properties in hand: Most respondents have already at least one property in hand
Source: Maybank KE Source: Maybank KE
94%
6%
Malaysian Non-Malaysian
34%
23%
17%
3%
3%
6%
14%
20-25 26-30 31-35 36-40 41-45 46-50 >50
9%
37%
3%
26%
14%
11%
Managerial professional
Government servants executive
Business Students/retiree
37%
37%
3%
23%
None 1 unit 2 units >2 units
May 19, 2015 13
Malaysia Property
Our April 2015 survey: Buying sentiment, preferred products, key considerations and concerns
Buying properties within the next 12 months? Most respondents were looking to buy a property within the next 12 months even though 63% already have at least one property in hand
Do you expect property prices to go up further? YES, from the majority
Source: Maybank KE Source: Maybank KE
Preferred product type: Most of the respondents were looking to buy landed properties
Reason for purchase: Interestingly, many respondents were still looking to buy properties for investment despite the property curbs in place since early-Jan 2014
Source: Maybank KE Source: Maybank KE
Do you face difficulties in securing mortgage loan? Close to half of the respondents said yes
Preferred location: Not a surprising response since we believe the majority of the respondents currently reside in Klang Valley
Source: Maybank KE Source: Maybank KE
22
10
3
0
5
10
15
20
25
Yes No Not sure
Respondents' Choices
27
7
1
0
5
10
15
20
25
30
Yes No Not sure
Respondents' Choices
13
27
7
0
5
10
15
20
25
30
High rise Landed Commercial
Respondents' choice
24
17
1
0
5
10
15
20
25
30
Investment Own use For kids
Respondents' Choices
16 16
3
0
5
10
15
20
Yes No Not sure
Respondents' Choices
34
1
42
0
5
10
15
20
25
30
35
40
Klang Valley Iskandar Malaysia Penang Overseas
Respondents' Choices
May 19, 2015 14
Malaysia Property
Preferred location: Many opt for sub-urban areas due to the high pricing for city centre properties
Preferred type of properties: Landed property is still the preferred choice
Source: Maybank KE Source: Maybank KE
Preferred size: 1,001-1,500 sq.ft. was the most common size range for our respondents
Budget for property: Units priced below MYR1m are the focus of most respondents. Most developers under our coverage have been switching focus to affordable housing segment
Source: Maybank KE Source: Maybank KE
Concerns: Pricing and financing were the key concerns of the 35 respondents
Key considerations: Location, pricing, security were the key considerations, similar to the outcome of our survey in June 2014
NGUYEN Thi Sony Tra Mi (84) 8 44 555 888 x 8084 [email protected] • Port operation • Pharmaceutical • Food & Beverage
May 19, 2015 23
Malaysia Property
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, connec ted 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.
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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.
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Thailand
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May 19, 2015 24
Malaysia Property
Disclosure of Interest
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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.
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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.
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