MY Strategy - I3investor · 2014-04-14 · note, BNM Annual Report, 20 March). Previously, we had expected no change in the OPR this year and hike(s) only in early-2015. What’s

April 14, 2014

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SEE PAGE 12 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS PP16832/01/2013 (031128)

MY Strategy

Assessing higher OPR impact Our 2015 market earnings estimates will only be marginally

shaved, factoring in a 50bps rise in the OPR from 2H14.

PLC with the highest negative earnings impact will be Ann

Joo; the impact on the rest is, at most, 3.3%.

Corporate balance sheets have been strengthening, providing

a good cushion against external shocks.

What’s New

We assess the impact of a 50bp hike in the benchmark overnight

policy rate (OPR) on the earnings of PLCs under our coverage. The

exercise was taken after our economics team brought forward its

OPR hike expectation, anticipating a 25-50bp rise in 2H14 (see our

note, BNM Annual Report, 20 March). Previously, we had expected

no change in the OPR this year and hike(s) only in early-2015.

What’s Our View

Our review methodology sieves out domestic from foreign debts,

and variable from fixed rate debts for the domestic debt portion.

We then impute a 50bp rate hike in the domestic variable rate

debts of PLCs under our universe, from mid-2014 onwards. PLC

that would see the highest earnings impact is Ann Joo, which had

MYR1.8b domestic debt, of which all are on variable rate.

The negative impact on the 2014/2015 combined core net profit

estimates of our research universe is however quite muted at just -

0.2%/-0.3%. A pertinent point to highlight is that an estimated 60%

of the total debts of the PLCs (those with >MYR3b debts

outstanding as at the last financial quarter; excluding the banks)

are foreign debts which are not impacted by our exercise here. We

make no change to the earnings forecasts for the PLCs.

We also took the opportunity to review the balance sheet strengths

of PLCs under our research universe. Malaysian business sector

(PLCs, non-PLCs) gross gearing came off 1.6ppts YoY to 39.7% at

end-Dec 2013, according to Bank Negara. Net gearing (gross debts

minus cash) of our research universe is even healthier at a 28.3%,

based on our review. The strengthening balance sheets provide a

good cushion against external shocks.

Analyst

Wong Chew Hann

(603) 2297 8686

[email protected]

Current KLCI: 1,853 (11 Apr)

YE KLCI target: 1,940 (unchanged)

M’sia equities growth & valuation

2013A 2014E 2015E

KLCI @ 1,853 PE (x) 18.0 16.4 15.1

Earnings Growth (%) 5.1% 8.1% 8.4%

Research Universe

PE (x) 18.6 16.7 15.2

Earnings Growth (%) 4.8% 11.4% 9.8%

Our sector weights

OW Construction, Oil & Gas, Power, Gloves, Shipping

N Auto, 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 @ 11 Apr

TP

Tenaga TNB 11.90 14.00

Genting Malaysia GENM 4.24 4.74

Hong Leong Bank HLBK 14.08 16.40

AMMB Holdings AMM 7.13 8.50

Bumi Armada BAB 3.97 5.00

IJM Corp IJM 6.49 6.75

Time dotCom TDC 4.32 4.40

MPHB Capital MPHB 1.92 2.42

Source: Maybank KE

April 14, 2014 2

Strategy

Our exercise

Methodology

Our review sieves out (i) domestic from foreign debts, and (ii) variable rate

from fixed rate debts for the domestic debt portion. We then impute a

50bp hike (which is the higher range of our 25-50bps OPR hike expectation)

on the domestic variable rate debts of PLCs under our universe, from mid-

2014 onwards. A pertinent point to highlight is that an estimated 60% of

the total debts of the PLCs (those with >MYR3b debts outstanding as at the

last financial quarter; excluding the banks) are foreign debts which are not

impacted in our exercise here; these largely relate to debts at the

overseas subsidiaries, or financing for projects or acquisitions overseas.

Gross debts for selected PLCs (those with >MYR3b at last financial quarter)

Source: Companies, based on latest quarterly results note (data), Maybank KE (compilation, chart)

Foreign/total debt for selected PLCs

Source: Companies, based on latest quarterly results note (data), Maybank KE (compilation, chart)

-

5,000

10,000

15,000

20,000

25,000

YT

LP

TN

B

Axi

ata

GE

NT

SA

KP

MA

S

Sim

e

MIS

C

AirA

sia

Max

is

IOIC

Tel

ekom

IJM

C

IHH

FG

V

SP

SB

MA

HB

BA

B

Ast

ro

UM

WH

Foreign debt (MYRm) Ringgit debt (MYRm)

78%

27%

63%

73%73%

49%53%

84%

95%

49%

99%

48%42%

98%

5%

16%

0%

74%

29%

55%

0%

20%

40%

60%

80%

100%

120%

YT

LP

TN

B

Axi

ata

GE

NT

SA

KP

MA

S

Sim

e

MIS

C

AirA

sia

Max

is

IOIC

Tel

ekom

IJM

C

IHH

FG

V

SP

SB

MA

HB

BA

B

Ast

ro

UM

WH

Foreign/total debt (%)

April 14, 2014 3

Strategy

Our findings

We focus on the full-year impact in 2015, and found that stocks that would

be:

Significantly impacted would just be Ann Joo Resources, which had

MYR1.8b debt as at Dec 2013, all are domestic and on variable rate.

Followed by SP Setia, Eversendai and NCB (2-3% impact on net profit).

The negative impact to our market earnings is just 0.3%, which is

negligible.

Impact of 50 basis point rise in OPR

Stock Calendarised current net profit forecast

Calendarised OPR-adjusted net profit forecast

% impact

CY14 CY15 CY14 CY15 CY14 CY15

MYR m MYR m MYR m MYR m

Ann Joo Resources 40 46 36 38 -9.1% -15.8%

SP Setia 503 626 484 606 -3.8% -3.3%

Eversendai Corporation 76 83 74 80 -1.7% -3.0%

NCB Holdings 140 148 138 144 -1.2% -2.6%

Litrak 142 163 139 159 -2.4% -2.2%

Axis REIT 91 94 89 92 -1.7% -1.7%

Kimlun Corporation 55 62 54 61 -0.9% -1.5%

TH Plantations 75 97 75 95 -1.1% -1.5%

Mah Sing 349 428 344 422 -1.4% -1.4%

Maxis 2,054 2,128 2,040 2,098 -0.7% -1.4%

UEM Sunrise 579 544 572 536 -1.3% -1.4%

Glomac 112 139 110 137 -1.7% -1.4%

Tan Chong Motor 350 408 347 404 -0.7% -1.1%

TSH Resources 145 164 144 162 -0.7% -1.1%

Astro Malaysia Holdings 564 725 557 718 -1.2% -1.0%

Tenaga 4,968 5,520 4,914 5,464 -1.1% -1.0%

Sunway Berhad 501 516 495 511 -1.1% -1.0%

IJM Corp 584 627 578 621 -1.0% -1.0%

Westports 484 484 481 480 -0.5% -0.9%

Ta Ann 82 117 81 116 -0.5% -0.9%

Sarawak Oil Palms 152 198 150 196 -1.0% -0.9%

QL Resources 178 203 176 201 -1.1% -0.9%

Sunway REIT 230 267 228 265 -0.8% -0.8%

UMW Hldgs 970 1,074 966 1,066 -0.5% -0.8%

CMMT 153 165 151 164 -0.8% -0.7%

Axiata 2,809 3,028 2,800 3,009 -0.3% -0.6%

TIME dotCom 120 133 120 132 -0.3% -0.6%

KLCC Prop 652 675 649 673 -0.3% -0.3%

Kossan Rubber 169 191 169 190 -0.2% -0.3%

Alam Maritim 98 99 98 99 -0.2% -0.3%

Sime Darby 3,255 3,416 3,245 3,406 -0.3% -0.3%

Gamuda 687 742 686 740 -0.1% -0.3%

Top Glove 196 218 196 217 -0.2% -0.3%

MBM Resources 138 163 138 162 -0.2% -0.2%

WCT 189 202 188 201 -0.1% -0.2%

BAT (M) 893 949 893 948 -0.1% -0.2%

DiGi.Com 1,860 1,908 1,858 1,905 -0.1% -0.1%

Star 154 170 153 169 -0.1% -0.1%

KL Kepong 1,092 1,125 1,091 1,124 -0.1% -0.1%

Hartalega Hldgs 294 338 293 338 -0.1% -0.1%

April 14, 2014 4

Strategy

Impact of 50 basis point rise in OPR

Stock Calendarised current net profit forecast

Calendarised OPR-adjusted net profit forecast

% impact

CY14 CY15 CY14 CY15 CY14 CY15

MYR m MYR m MYR m MYR m

Berjaya Sports Toto 378 391 378 391 -0.1% -0.1%

Telekom 979 1,055 979 1,055 0.0% 0.0%

Barakah Offshore 79 115 79 115 0.0% -0.1%

Media Prima 221 225 221 225 0.0% -0.1%

Pavilion REIT 227 230 226 229 -0.1% -0.1%

Yinson 109 147 109 147 -0.1% -0.1%

YTL Power 1,055 1,051 1,053 1,051 -0.2% -0.1%

Carlsberg Brewery 201 204 201 204 0.0% 0.0%

SapuraKencana 1,310 1,655 1,310 1,654 -0.1% 0.0%

Bumi Armada 471 502 471 502 0.0% 0.0%

Magnum 279 287 279 287 0.0% 0.0%

IOI Corp 1,395 1,270 1,394 1,270 0.0% 0.0%

MISC 1,581 1,705 1,581 1,704 0.0% 0.0%

MCIL 170 178 170 178 0.0% 0.0%

IGB REIT 217 222 217 222 0.0% 0.0%

AirAsia X 168 293 168 293 0.0% 0.0%

AirAsia 705 710 705 710 0.0% 0.0%

AMMB Holdings 1,930 2,098 1,930 2,098 0.0% 0.0%

BIMB Holdings 498 525 498 525 0.0% 0.0%

Bursa Malaysia 187 200 187 200 0.0% 0.0%

CIMB 4,683 5,224 4,683 5,224 0.0% 0.0%

F&N Hldgs 354 382 354 382 0.0% 0.0%

Genting Malaysia 1,619 1,727 1,619 1,727 0.0% 0.0%

Genting 2,066 2,314 2,066 2,314 0.0% 0.0%

Gas Malaysia 196 237 196 237 0.0% 0.0%

Guinness 220 228 220 228 0.0% 0.0%

Hong Leong Bank 2,171 2,372 2,171 2,372 0.0% 0.0%

Hong Leong Financial Group 1,587 1,722 1,587 1,722 0.0% 0.0%

Lafarge 389 400 389 400 0.0% 0.0%

MAHB 424 497 424 497 0.0% 0.0%

MAS -221 241 -221 241 0.0% 0.0%

Maybank 7,194 7,889 7,194 7,889 0.0% 0.0%

MMHE 175 331 175 331 0.0% 0.0%

MPHB Capital 63 68 63 68 0.0% 0.0%

Public Bank 4,319 4,705 4,319 4,705 0.0% 0.0%

Petronas Chemicals 3,659 3,712 3,659 3,712 0.0% 0.0%

Perdana Petroleum 100 122 100 122 0.0% 0.0%

Perisai Petroleum 70 150 70 150 0.0% 0.0%

Petronas Gas 1,668 1,729 1,668 1,729 0.0% 0.0%

Quill Capita 36 38 36 38 0.0% 0.0%

RHB Capital 2,019 2,219 2,019 2,219 0.0% 0.0%

UMW O&G 288 485 288 485 0.0% 0.0%

Wah Seong 83 91 83 91 0.0% 0.0%

Nestle 610 703 610 703 -0.1% 0.0%

Dialog 264 298 264 298 0.0% 0.0%

Berjaya Auto 131 162 131 162 0.0% 0.2%

AEON Co 254 278 254 278 0.2% 0.2%

Oldtown 68 75 68 75 0.3% 0.4%

MSM Malaysia Holdings 266 278 267 279 0.3% 0.4%

JTI 128 135 128 136 0.2% 0.5%

Genting Plantations 419 474 422 477 0.7% 0.6%

Cahya Mata Sarawak 208 252 209 254 0.5% 0.8%

HSL 104 111 104 112 0.4% 1.1%

Felda Global Ventures 691 788 702 799 1.7% 1.4%

Padini Holdings 105 115 107 117 2.5% 2.1%

Total 74,744 81,995 74,582 81,784 -0.2% -0.3%

Source: Maybank KE

April 14, 2014 5

Strategy

Impact on the banks

Our forecasts for the banks have already imputed in a 50bps hike in the

OPR in 2015 and our revised earlier timeline will have minimal impact on

our forecasts, which are maintained. On an individual bank basis, we

estimate the impact on CY15 net profits to range from +1% for AMMB to

+8% for CIMB from such a rate increase (see our note Banking: A stable

operating environment, 20 March for details).

Impact of a 50 bps hike in interest rates on earnings

AMMB BIMB CIMB HLBK MAY PBK RHBC

CASA 19% 35% 25% 26% 36% 25% 22%

Floating rate loans/total loans 56% 58% 76% 72% 67% 73% 71%

Investments as % of assets 16% 39% 17% 21% 20% 13% 21%

Loan/deposit ratio 95% 64% 85% 77% 88% 87% 87%

Impact of 50 bps hike 1.3% 5.5% 7.8% 2.3% 7.6% 1.4% 5.5%

In int rates on earnings

Source: Banks, Maybank KE

Balance sheets review

Balance sheets of the business sector have strengthened further, per Bank

Negara’s 2013 Financial Stability and Payment Systems Report released on

19 March. Debt-to-equity or gross gearing ratio was 39.7% as at end-2013,

down 1.6ppts YoY, continuing the downtrend since 2011. For the PLCs

under our research universe, net gearing (gross debts minus cash) was even

healthier at an average 28.3%, based on our review on their latest financial

year. The strengthening balance sheets provide a good cushion against

external shocks.

Balance sheet strength of the business sector

Source: Bank Negara (data), Maybank KE (compilation, chart)

50.3 47.9 46.342.6

38.4

43.941.3

39.7

2

3

4

5

6

7

8

9

0

10

20

30

40

50

60

2006 2007 2008 2009 2010 2011 2012 2013

D/E (%, LHS) Int cov (x, RHS)

April 14, 2014 6

Strategy

Net gearing at latest balance sheet date

Source: Bloomberg (data), Maybank KE (compilation, chart)

0 100 200 300 400 500

Astro

Litrak

MAS

AirAsia

AJR

Yinson

AirAsia X

YTLP

Barakah

Maxis

Perdana Pet

BAT (M)

MAHB

SAKP

QL

TSH

THP

Bumi Armada

Alam Maritim

Kimlun

IJMC

Tenaga

Quill Capita

Telekom

DiGi.Com

Axis REIT

Wah Seong

IOIC

Sunway REIT

Eversendai

Tan Chong

SP Setia

WCT

Westports

Axiata

CMMT

Pavilion REIT

MCIL

Perisal Pet

Sunway

SOP

UNIVERSE (ex-banks)

April 14, 2014 7

Strategy

Net gearing at latest balance sheet date

Source: Bloomberg (data), Maybank KE (compilation, chart)

-160 -140 -120 -100 -80 -60 -40 -20 0 20 40

UNIVERSE (ex-banks)

IGB REIT

Glomac

Ta Ann

Gamuda

UMWOG

Magnum

Sime Darby

Guinness

MISC

BST

Mah Sing

UEMS

IHH

Dialog

KLCC Prop

MBM

Nestle

Kossan

KLK

UMWH

NCB

F&N

GENP

Petronas Gas

Carlsberg

TDC

Top Glove

Media Prima

FGV

GENM

MSM

MMHE

Lafarge

GENT

AEON Co

MPHB Cap

Hartalega

Star

Gas M'sia

HSL

CMS

JTI

Oldtown

B Auto

Petronas Chem

Padini

Bursa

April 14, 2014 8

Strategy Maybank KE Equity Research Stock Universe

Ticker

Company FYE Price Market TP Recom

Core Net Profit EPS CAGRCAGR

PER PER PER ROE Div Yld

PBV Price chg 11-Apr Cap CY13A CY14F CY14F CY13

A CY14F CY14F 13-15 CY13A CY14F CY14F CY15

A CY14F CY13

A YTD

MYR m MYR MYR m MYR sen (%) (x) (%) (%) (x) (%)

Autos

BAUTO MK Berjaya Auto * 4 2.22 1,786 2.15 Buy 87 131 162 11.1 16.3 20.1 34.8 20.1 13.6 11.0 36.5 2.2 7.1 34.5

MBM MK MBM Resources * 12 3.24 1,266 3.75 Hold 139 138 163 35.5 35.4 41.7 8.4 9.1 9.2 7.8 8.9 2.7 0.9 0.9

TCM MK Tan Chong # 12 5.51 3,597 7.50 Buy 293 350 408 44.8 53.6 62.5 18.1 12.3 10.3 8.8 11.7 1.6 1.3 (11.0)

UMWH MK UMW Hldgs * 12 10.86 12,688 12.70 Hold 881 970 1,074 75.4 83.1 91.9 10.4 14.4 13.1 11.8 14.2 3.8 2.0 (10.0)

Banking

MAY MK Maybank 12 9.76 86,556 NR NR 6,552 7,194 7,889 82.9 79.5 83.6 0.4 11.8 12.3 11.7 13.7 5.6 1.9 (1.8)

AMM MK AMMB Holdings 3 7.13 21,491 8.50 Buy 1,762 1,930 2,098 58.5 64.0 69.6 9.1 12.2 11.1 10.2 13.7 3.7 1.7 (1.5)

BIMB MK BIMB Holdings * 12 4.30 6,422 4.30 Hold 256 498 525 23.7 33.3 35.2 22.0 18.2 12.9 12.2 16.5 3.2 2.4 (5.3)

CIMB MK CIMB 12 7.40 60,897 8.00 Hold 4,178 4,683 5,224 55.2 56.9 63.5 7.3 13.4 13.0 11.7 12.8 3.1 1.9 (2.9)

HLBK MK Hong Leong Bank

6 14.08 25,327 16.40 Buy 1,964 2,171 2,372 110.5 120.7 131.9 9.3 12.7 11.7 10.7 14.3 2.7 1.8 (2.2)

HLFG MK HL Financial 6 15.20 16,002 17.30 Buy 1,506 1,587 1,722 144.8 152.6 165.6 6.9 10.5 10.0 9.2 13.5 2.5 1.5 (1.8)

PBK MK Public Bank 12 19.70 68,992 18.00 Sell 4,065 4,319 4,705 116.1 123.3 134.3 7.6 17.0 16.0 14.7 18.6 2.8 3.4 1.5

RHBC MK RHB Capital 12 8.43 21,470 8.40 Hold 1,831 2,019 2,219 72.9 79.3 87.1 9.3 11.6 10.6 9.7 10.8 2.2 1.3 6.7

Building Materials

AJR MK Ann Joo # 12 1.28 641 1.20 Hold 23 40 46 4.4 7.6 8.7 40.6 29.1 16.8 14.7 3.6 0.0 0.6 21.9

LMC MK Lafarge * 12 8.97 7,622 9.90 Buy 386 389 400 45.4 45.7 47.0 1.7 19.8 19.6 19.1 11.9 4.7 2.4 4.7

Construction / Infra

EVSD MK Eversendai * 12 1.03 797 0.98 Hold 52 76 83 6.7 9.8 10.7 26.4 15.4 10.5 9.6 8.4 2.3 0.5 (1.0)

GAM MK Gamuda * 7 4.55 10,477 4.45 Hold 644 687 742 27.7 31.8 34.4 11.6 16.5 14.3 13.2 13.5 2.9 2.1 (5.2)

HSL MK HSL * 12 1.80 989 2.30 Buy 85 104 111 15.3 18.7 19.9 14.0 11.8 9.6 9.0 16.7 2.4 1.9 (3.7)

IJM MK IJM Corp * 3 6.49 9,283 6.75 Buy 526 584 627 38.0 42.2 45.4 9.3 17.1 15.4 14.3 9.2 2.0 1.5 10.4

LTK MK Litrak * 3 3.88 1,999 4.45 Buy 133 142 163 26.1 27.8 31.8 10.5 14.9 14.0 12.2 26.8 4.4 4.3 (11.2)

WCT MK WCT * 12 2.25 2,447 2.55 Buy 201 189 202 17.7 17.5 18.4 2.0 12.7 12.9 12.2 8.0 3.0 1.1 9.8

CMS MK CMS * 12 9.72 3,308 10.50 Buy 175 208 252 51.6 61.3 74.2 19.9 18.8 15.9 13.1 11.6 1.9 2.0 41.5

KICB MK Kimlun Corp * 12 1.72 620 1.90 Buy 36 55 62 12.1 18.2 20.6 30.5 14.2 9.5 8.3 16.1 2.8 1.7 2.6

Consumer

AEON MK AEON Co * 12 15.42 5,412 13.70 Hold 231 254 278 65.8 72.3 79.1 9.6 23.4 21.3 19.5 13.9 1.4 3.3 10.1

ROTH MK BAT (M) - 12 62.00 17,703 57.00 Sell 823 893 949 288.4 312.9 332.4 7.4 21.5 19.8 18.7 161.6 4.8 34.8 (3.3)

CAB MK Carlsberg 12 13.02 4,005 12.40 Hold 184 201 204 60.2 65.7 66.6 5.2 21.6 19.8 19.5 69.7 4.7 14.5 6.9

GUIN MK Guinness 6 14.30 4,320 14.40 Hold 216 220 228 71.5 72.8 75.5 2.8 20.0 19.7 18.9 60.0 5.2 5.9 (10.6)

RJR MK JTI 12 7.68 2,009 7.80 Hold 122 128 135 46.5 49.0 51.6 5.3 16.5 15.7 14.9 29.9 2.9 4.7 18.5

PAD MK Padini Holdings * 6 2.02 1,329 2.35 Buy 92 105 115 14.0 15.9 17.5 11.8 14.5 12.7 11.6 25.3 5.6 3.5 11.6

NESZ MK Nestle * 12 67.24 15,768 64.00 Hold 562 610 703 239.5 260.3 299.9 11.9 28.1 25.8 22.4 72.1 3.7 19.3 (1.1)

QLG MK QL Resources * 3 3.27 4,081 2.86 Hold 151 178 203 12.1 14.3 16.2 15.8 27.0 22.9 20.2 15.9 1.5 3.4 15.1

MSM MK MSM Malaysia Holdings

* 12 4.80 3,374 5.30 Hold 249 266 278 35.4 37.8 39.5 5.6 13.6 12.7 12.2 13.8 5.1 1.8 (4.0)

OTB MK Oldtown * 3 1.99 901 2.67 Buy 58 68 75 15.9 18.8 20.7 13.9 12.5 10.6 9.6 18.0 5.2 2.1 (4.3)

IHH MK IHH * 12 3.90 31,800 3.80 Hold 649 825 963 8.0 10.2 11.8 21.4 48.8 38.2 33.1 4.4 0.6 1.7 1.0

* Shariah compliant (under Securities Commission’s new Shariah compliant list) # No longer Shariah compliant; Source: Maybank KE

April 14, 2014 9

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 11-Apr Cap CY13A CY14F CY14F CY13

A CY14F CY14F 13-15 CY13A CY14F CY14F CY15

A CY14F CY13

A YTD

MYR m MYR MYR m MYR sen (%) (x) (%) (%) (x) (%)

Gaming

BST MK BToto 4 3.96 5,217 3.95 Hold 372 378 378 27.8 28.0 28.9 2.0 14.2 14.1 13.7 56.0 5.9 8.8 (2.2)

MAG MK Magnum 12 2.99 4,268 3.04 Hold 329 279 287 23.1 19.5 20.1 -6.7 12.9 15.3 14.9 11.0 5.4 1.7 (5.4)

GENT MK Genting Bhd 12 9.63 35,794 10.22 Hold 1,758 2,066 2,314 47.6 55.9 62.6 14.7 20.2 17.2 15.4 8.6 0.6 1.4 (6.1)

GENM MK Genting Msia 12 4.24 24,047 4.74 Buy 1,714 1,619 1,727 30.2 28.5 30.4 0.3 14.0 14.9 13.9 10.3 1.6 1.6 (3.2)

Manufacturing

HART MK Hartalega Hldgs * 3 6.50 4,856 7.10 Hold 258 294 338 34.6 36.9 41.8 9.9 18.8 17.6 15.6 28.3 2.7 5.5 (10.1)

KRI MK Kossan Rubber * 12 4.27 2,731 5.00 Buy 141 169 191 22.0 26.4 29.8 16.4 19.4 16.2 14.3 21.1 2.8 3.9 (1.2)

TOPG MK Top Glove * 8 4.88 3,029 6.00 Buy 191 196 218 30.9 31.6 35.1 6.6 15.8 15.4 13.9 13.5 3.2 2.2 (13.3)

Media

ASTRO MK Astro Malaysia 1 3.35 17,414 3.37 Hold 446 564 725 8.6 10.8 13.9 27.7 39.2 31.0 24.0 75.6 3.2 28.3 11.7

MCIL MK MCIL # 3 0.94 1,586 1.01 Hold 167 170 178 9.9 10.1 10.6 3.4 9.5 9.3 8.9 21.6 5.4 2.3 (3.6)

MPR MK Media Prima 12 2.45 2,705 2.48 Hold 214 221 225 19.2 19.1 19.4 0.5 12.8 12.8 12.6 12.8 5.8 1.6 (6.5)

STAR MK Star * 12 2.41 1,778 2.55 Buy 144 154 170 19.5 20.8 23.0 8.6 12.4 11.6 10.5 13.0 6.2 1.5 8.1

Oil & Gas

AMRB MK Alam Maritim * 12 1.44 1,154 1.90 Buy 82 98 99 10.2 12.2 12.3 9.8 14.1 11.8 11.7 13.8 0.2 1.9 (8.3)

DLG MK Dialog * 6 3.59 8,728 3.90 Buy 219 264 298 9.2 11.1 12.5 16.3 39.0 32.5 28.8 16.4 1.2 6.0 0.3

PETR MK Perdana Petro * 12 1.91 1,407 2.55 Buy 61 100 122 8.5 13.7 16.8 40.6 22.5 13.9 11.4 13.5 0.0 3.0 20.1

PTG MK Petronas Gas * 12 23.98 47,450 23.50 Hold 2,141 1,668 1,729 108.2 84.3 87.4 -10.1 22.2 28.4 27.4 15.5 2.5 4.6 (1.2)

WSC MK Wah Seong * 12 1.84 1,425 1.50 Hold 42 83 91 5.5 10.8 11.8 46.5 33.5 17.0 15.6 7.9 4.1 1.1 12.3

MMHE MK MMHE * 12 3.88 6,208 4.20 Buy 237 175 331 14.8 10.9 20.7 18.3 26.2 35.6 18.7 6.5 1.3 2.4 10.9

BAB MK Bumi Armada # 12 3.97 11,641 5.00 Buy 449 471 502 15.3 16.1 17.2 6.0 25.9 24.7 23.1 9.9 0.0 2.7 (1.5)

YNS MK Yinson # 1 8.88 2,293 10.10 Buy 63 109 147 24.5 42.1 57.1 52.6 36.2 21.1 15.6 17.6 0.2 4.5 31.8

BARAKAH MK Barakah * 9 1.54 965 1.85 Buy 48 79 115 5.6 9.1 13.4 55.2 27.7 16.9 11.5 29.3 0.0 5.0 0.7

PPT MK Perisal * 12 1.61 1,920 1.95 Buy 62 70 150 6.3 6.4 13.9 48.5 25.6 25.2 11.6 7.2 0.0 1.8 1.3

SAKP MK SapuraKencana * 1 4.35 26,066 5.30 Buy 983 1,310 1,655 17.4 22.0 27.6 25.9 25.0 19.8 15.8 11.5 0.0 2.6 (11.2)

UMWOG MK UMW O&G - 12 3.97 8,583 5.15 Buy 167 288 485 7.7 13.3 22.4 70.6 51.6 29.8 17.7 9.2 0.0 3.1 (1.0)

GMB MK Gas Malaysia * 12 3.66 4,699 3.50 Hold 171 172 185 13.4 13.4 14.4 3.7 27.3 27.3 25.4 17.1 3.7 4.7 (5.4) Plantation

GENP MK Genting Plantn * 12 10.96 8,319 11.20 Hold 305 419 474 40.2 55.2 62.4 24.6 27.3 19.9 17.6 11.2 1.1 2.4 (0.7)

IOI MK IOI Corp * 6 4.87 30,923 3.95 Sell 1,601 1,395 1,270 24.9 21.7 19.8 -10.9 19.6 22.4 24.7 21.2 2.0 3.4 3.4

KLK MK KL Kepong * 9 23.92 25,474 24.00 Hold 940 1,092 1,125 88.0 102.3 105.4 9.5 27.2 23.4 22.7 13.5 2.6 3.5 (3.9)

SIME MK Sime Darby * 6 9.28 56,275 10.20 Buy 3,222 3,255 3,416 53.6 54.2 56.9 3.0 17.3 17.1 16.3 11.1 3.2 2.0 (2.5)

FGV MK Felda Global * 12 4.59 16,745 4.48 Hold 90 691 788 2.5 18.9 21.6 193.9 183.6 24.3 21.3 10.0 1.6 2.6 2.2

SOP MK Swak Oil Palms * 12 6.50 2,850 6.80 Buy 97 152 198 22.3 34.7 45.3 42.5 29.1 18.7 14.3 11.1 0.8 2.3 (0.2)

TSH MK TSH Resources * 12 3.26 2,924 3.40 Buy 114 145 164 12.9 16.0 18.2 18.8 25.3 20.4 17.9 12.4 1.5 2.7 8.3

THP MK TH Plantations * 12 1.98 1,747 1.65 Hold 63 75 97 7.2 8.6 11.0 23.6 27.5 23.0 18.0 6.1 2.2 1.5 5.3

TAH MK Ta Ann * 12 4.16 1,541 4.75 Buy 58 82 117 15.7 22.0 31.7 42.1 26.5 18.9 13.1 7.6 2.3 1.7 (0.2)

* Shariah compliant (under Securities Commission’s new Shariah compliant list) # No longer Shariah compliant; Source: Maybank KE

April 14, 2014 10

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 11-Apr Cap CY13A CY14F CY14F CY13

A CY14F CY14F 13-15 CY13A CY14F CY14F CY15

A CY14F CY13

A YTD

MYR m MYR MYR m MYR sen (%) (x) (%) (%) (x) (%)

Non-Banking Finance

BURSA MK Bursa Malaysia 12 7.51 4,002 8.00 Hold 173 187 200 32.5 35.2 37.5 7.4 23.1 21.3 20.0 23.1 4.7 4.9 (8.7)

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 5.5 0.7 1.3 14.3

Petrochemicals

PCHEM MK Petronas Chem * 12 6.75 54,000 6.85 Hold 3,156 3,659 3,712 39.5 45.7 46.4 8.4 17.1 14.8 14.5 15.8 3.4 2.3 (2.5)

Property

AXRB MK Axis REIT * 12 3.40 1,568 2.71 Hold 89 91 94 19.4 19.8 20.6 3.0 17.5 17.2 16.5 9.1 5.7 1.6 16.0

KLCC MK KLCC Prop * 12 6.35 11,464 6.25 Hold 626 652 675 34.7 36.1 37.4 3.8 18.3 17.6 17.0 6.0 5.2 0.9 8.5

MSGB MK Mah Sing * 12 2.24 3,185 2.44 Hold 281 349 428 17.3 25.2 30.8 33.4 12.9 8.9 7.3 16.2 4.5 1.7 (0.9)

QUIL MK Quill Capita 12 1.13 441 1.16 Hold 35 36 38 8.9 9.3 9.7 4.4 12.7 12.2 11.6 6.8 7.0 0.8 (4.2)

SPSB MK SP Setia # 10 2.95 7,253 3.36 Hold 428 503 626 18.1 20.5 25.4 18.5 16.3 14.4 11.6 8.7 4.2 1.3 (2.0)

ULHB MK UEM Sunrise * 12 2.30 10,436 2.12 Hold 579 579 544 13.0 13.0 12.2 -3.1 17.7 17.7 18.9 9.0 1.8 1.9 (2.5)

SWB MK Sunway Berhad * 12 3.02 5,205 2.79 Hold 483 501 516 30.6 29.0 30.0 -1.0 9.9 10.4 10.1 8.7 1.9 0.9 11.0

GLMC MK Glomac * 4 1.09 792 1.20 Hold 98 112 139 13.5 15.4 19.1 18.9 8.1 7.1 5.7 12.2 4.2 0.9 (2.7)

CMMT MK CMMT 12 1.45 2,575 1.74 Buy 149 153 165 8.4 8.5 9.1 4.1 17.3 17.1 15.9 7.1 6.6 1.2 3.6

SREIT MK Sunway REIT 6 1.32 3,863 1.24 Hold 219 230 267 7.5 7.9 9.1 10.2 17.6 16.8 14.5 6.4 6.2 1.1 6.5

IGBREIT MK IGB REIT 12 1.15 3,943 1.24 Hold 207 217 222 6.1 6.3 6.5 3.2 18.9 18.3 17.7 6.0 5.4 1.1 (3.4)

PREIT MK Pavilion REIT 12 1.30 3,915 1.53 Buy 210 227 230 7.0 7.5 7.6 4.2 18.6 17.3 17.1 6.8 6.1 1.2 1.6

Telecommunications

DIGI MK DiGi.Com * 12 5.25 40,819 5.00 Hold 1,706 1,860 1,908 21.9 23.9 24.5 5.8 24.0 22.0 21.4 281.3 4.6 58.3 5.8

T MK Telekom * 12 5.91 21,142 5.90 Hold 1,039 979 1,055 29.0 27.4 29.5 0.9 20.4 21.6 20.0 13.5 4.2 3.0 6.5

AXIATA MK Axiata * 12 6.66 56,966 7.00 Hold 2,900 2,809 3,028 34.0 32.9 35.4 2.0 19.6 20.2 18.8 13.8 3.7 2.9 (3.5)

MAXIS MK Maxis * 12 6.96 52,234 7.20 Hold 1,765 2,054 2,128 23.5 27.4 28.4 9.9 29.6 25.4 24.5 40.6 5.7 8.7 (4.3)

TDC MK Time dotCom * 12 4.32 2,476 4.40 Buy 260 120 133 45.4 21.0 23.1 -28.7 9.5 20.6 18.7 5.7 1.6 1.2 21.7

Transport

AIRA MK AirAsia # 12 2.31 6,425 2.65 Buy 418 705 710 15.0 25.3 25.5 30.4 15.4 9.1 9.1 12.6 2.2 1.3 5.0

AAX MK AirAsia X * 12 0.75 1,778 1.06 Buy -22 168 293 -0.9 7.1 12.4 n.a. n.a. 10.6 6.0 10.3 0.0 1.4 (24.6)

MAHB MK MAHB 12 8.01 10,930 7.03 Sell 365 424 497 29.6 34.4 40.3 16.7 27.1 23.3 19.9 8.6 2.1 2.1 (11.0)

MAS MK MAS * 12 0.22 3,593 0.28 Sell -1,083 -221 241 -6.0 -1.0 1.0 n.a. n.a. n.a. 21.5 -5.8 0.0 0.9 (30.6)

WPRTS MK Westports * 12 2.53 8,627 2.70 Buy 435 484 484 12.8 14.2 14.2 5.3 19.8 17.8 17.8 28.0 4.2 5.4 0.0

NCB MK NCB Holdings * 12 3.15 1,481 3.60 Hold 54 140 148 11.4 29.8 31.4 66.0 27.6 10.6 10.0 9.2 3.2 1.0 (10.0)

MISC MK MISC * 12 6.80 30,354 7.20 Buy 1,529 1,581 1,705 34.2 35.4 38.2 5.7 19.9 19.2 17.8 5.9 0.0 1.3 19.3

Utilities

TNB MK Tenaga * 8 11.90 67,159 14.00 Buy 4,267 4,968 5,520 76.2 88.0 97.8 13.3 15.6 13.5 12.2 12.5 2.3 1.8 4.6

YTLP MK YTL Power # 6 1.67 11,342 1.84 Hold 1,038 1,055 1,051 14.6 14.9 14.8 0.7 11.4 11.2 11.3 8.5 0.5 1.1 (7.2)

* Shariah compliant (under Securities Commission’s new Shariah compliant list) # No longer Shariah compliant; Source: Maybank KE

April 14, 2014 11

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

[email protected]

• Oil & Gas • Automobile • Cement

Anubhav GUPTA

(91) 22 6623 2605

[email protected]

• Metal & Mining • Capital Goods • Property

Urmil SHAH

(91) 22 6623 2606 [email protected]

• Technology • Media

SINGAPORE

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

April 14, 2014 12

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.

April 14, 2014 13

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 April 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 April 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.

April 14, 2014 14

Strategy

Malaysia Maybank Investment Bank Berhad

(A Participating Organisation of

Bursa Malaysia Securities Berhad)

33rd Floor, Menara Maybank,

100 Jalan Tun Perak,

50050 Kuala Lumpur

Tel: (603) 2059 1888;

Fax: (603) 2078 4194

Singapore Maybank Kim Eng Securities Pte Ltd

Maybank Kim Eng Research Pte Ltd

9 Temasek Boulevard

#39-00 Suntec Tower 2

Singapore 038989

Tel: (65) 6336 9090

Fax: (65) 6339 6003

London Maybank Kim Eng Securities

(London) Ltd

6/F, 20 St. Dunstan’s Hill

London EC3R 8HY, UK

Tel: (44) 20 7621 9298

Dealers’ Tel: (44) 20 7626 2828

Fax: (44) 20 7283 6674

New York Maybank Kim Eng Securities USA

Inc

777 Third Avenue, 21st Floor

New York, NY 10017, U.S.A.

Tel: (212) 688 8886

Fax: (212) 688 3500

Stockbroking Business:

Level 8, Tower C, Dataran Maybank,

No.1, Jalan Maarof

59000 Kuala Lumpur

Tel: (603) 2297 8888

Fax: (603) 2282 5136

Hong Kong Kim Eng Securities (HK) Ltd

Level 30,

Three Pacific Place,

1 Queen’s Road East,

Hong Kong

Tel: (852) 2268 0800

Fax: (852) 2877 0104

Indonesia PT Maybank Kim Eng Securities

Plaza Bapindo

Citibank Tower 17th Floor

Jl Jend. Sudirman Kav. 54-55

Jakarta 12190, Indonesia

Tel: (62) 21 2557 1188

Fax: (62) 21 2557 1189

India Kim Eng Securities India Pvt Ltd

2nd Floor, The International 16,

Maharishi Karve Road,

Churchgate Station,

Mumbai City - 400 020, India

Tel: (91).22.6623.2600

Fax: (91).22.6623.2604

Philippines Maybank ATR Kim Eng Securities Inc.

17/F, Tower One & Exchange Plaza

Ayala Triangle, Ayala Avenue

Makati City, Philippines 1200

Tel: (63) 2 849 8888

Fax: (63) 2 848 5738

Thailand Maybank Kim Eng Securities

(Thailand) Public Company Limited

999/9 The Offices at Central World,

20th - 21st Floor,

Rama 1 Road Pathumwan,

Bangkok 10330, Thailand

Tel: (66) 2 658 6817 (sales)

Tel: (66) 2 658 6801 (research)

Vietnam In association with

Maybank Kim Eng Securities JSC

1st Floor, 255 Tran Hung Dao St.

District 1

Ho Chi Minh City, Vietnam

Tel : (84) 844 555 888

Fax : (84) 838 38 66 39

Saudi Arabia In association with

Anfaal Capital

Villa 47, Tujjar Jeddah

Prince Mohammed bin Abdulaziz

Street P.O. Box 126575

Jeddah 21352

Tel: (966) 2 6068686

Fax: (966) 26068787

South Asia Sales Trading Kevin FOY

[email protected]

Tel: (65) 6336-5157

US Toll Free: 1-866-406-7447

North Asia Sales Trading Alex TSUN

[email protected]

Tel: (852) 2268 0228

US Toll Free: 1 877 837 7635

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