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May 14, 2014

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SEE PAGE 13 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS PP16832/01/2013 (031128)

MY Strategy

Tracking the vision

Malaysia is on track to meet its 2020 aspirations.

Construction, oil & gas will remain long-term beneficiaries on

continuous job/project flows.

No change to our market view, sector and stock calls.

What’s New

The Economic Transformation Programme (ETP) met 103% of its KPI

targets in 2013 (2012: 118%, 2011: 123%), while its enabler, the

Strategic Reform Initiatives met 95% (2012: 93%). The Government

Transfomation Programme (GTP) achieved 104% (2012: 108%; 2011:

131%). These milestones were unveiled by PM Najib on Monday

night. Together, the ETP, SRI and GTP form a package of reforms/

plans to lead the country towards a high-income economy by 2020.

What’s Our View

Macro-economic indicators like private investments and GNI per

capita do point towards an „on-track‟ milestone for a high-income

economy by 2020, as far as the quantitative aspects are

concerned. In terms of market-sector related targets in the ETP-

SRI, we expect:

infrastructure related construction awards to sustain;

efforts to raise upstream oil & gas production and to diversify

downstream to pick up;

government subsidy rationalisation efforts to continue;

asset/investment divestments by the GLCs to continue.

Construction and oil & gas should benefit from the continuity in

job/project flows. KVMRT2 & 3, government land developments

(RRIM, TRX, Warisan Merdeka), urban public transportation (LRT 3)

and RAPID are some of the larger scale infrastructure projects over

the medium term. The HSR project remains a longer-term target.

We however remain cautious on the consumer discretionary sub-

sector as further subsidy rationalisation coupled with the Goods &

Services Tax (GST) implementation from Apr 2015 (which widens

the scope of indirect taxes) would cap sentiment into 2015. An

offsetting factor is a pick-up in investments momentum which

would provide new job opportunities.

There is no change to our year-end KLCI target (1,940), sector and

stock calls/views. The ETP 2013 Annual Report reaffirms our

Overweight call on the construction & oil & gas sectors.

(Please refer to our separate economics piece today for details

on the 2013 ETP, SRI, GTP Report Cards.)

Analyst

Wong Chew Hann

(603) 2297 8686

[email protected]

Current KLCI: 1,866 (12 May)

YE KLCI target: 1,940 (unchanged)

M’sia equities growth & valuation

2013A 2014E 2015E

KLCI @ 1,866 PE (x) 18.0 16.5 15.2

Earnings Growth (%) 5.1% 8.1% 8.4%

Research Universe

PE (x) 18.7 16.8 15.4

Earnings Growth (%) 6.7% 11.4% 9.2%

Our sector weights

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

N Aviation, Banking, Building materials,

Consumer, Gaming, Media, Non-banking finance, Plantation, Property,

Petrochem, Telco, Ports

UW -

Our top BUY picks

Stock Name BB Ticker Shr Px @

12 May

TP

Tenaga TNB 11.98 14.00

Genting Malaysia GENM 4.22 4.74

Hong Leong Bank HLBK 14.04 16.40

AMMB Holdings AMM 7.15 8.60

Bumi Armada BAB 3.90 5.00

IJM Corp IJM 6.28 6.75

MPHB Capital MPHB 1.92 2.42

Source: Maybank KE

May 14, 2014 2

Strategy

Key points from ETP 2013 Annual Report

2020 on track

47 projects with a combined committed investment value of MYR8b were

added on in 2013, lifting the total projects to 196 and the total committed

investments to MYR219b since the ETP was launched in Oct 2010. Since

2010, realised private investments have grown by a compounded 17.8%

p.a. to MYR161b, to make up 61% of the total realised investments in 2013

(2010: 55%). Over the same period, GNI per capita grew by a compounded

6.3% p.a. to reach USD10,060 in 2013 (2020 target: USD15,000).

Our economics team is of the view that the achievements so far point

towards an „on-track‟ milestone as far as the quantitative aspects of a

high-income economy (by 2020) are concerned.

ETP: Progress todate

Source: PEMANDU

Economy: Realised private investments

Source: Department of Statistics

179.2

211.3219.3

110

149

196

0

50

100

150

200

250

0

50

100

150

200

250

2011 2012 2013

No.MYR b Commited investments, cumm (MYR b, LHS)

No. of projects, cumm (RHS)

33.8

50.6 53.7 62.1

77.0 80.6 81.0

98.6

112.8

140.2

161.1

0

20

40

60

80

100

120

140

160

180

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Realised private investments (MYR b)

Oct 2010: ETP launch

May 14, 2014 3

Strategy

Economy: GNI per capita

Source: Department of Statistics

Construction: New infrastructure job flows to sustain

The Greater Kuala Lumpur / Klang Valley (KL/KV) National Key Economic

Area (NKEA) achieved a 98% KPI milestone in 2013 (2012: 108%, 2011:

151%). Two entry point projects (EPP) under the Greater KL/KV NKEA,

namely the KVMRT and KL-Singapore HSR, will remain prominent as key

supporting infrastructure to Malaysia‟s capital transformation into a world-

class city and a globally competitive economic hub.

Near-to-medium term implementation will be the KVMRT 2 & 3, where we

understand that the authorities have given their go-ahead but the formal

project award is pending a few final details. Here, we think MMC-Gamuda

will feature as both the project delivery partner (PDP) and main contractor

for the tunnel works portion, supported by their experience in KVMRT 1. As

for the HSR, a joint government-to-government committee has been

formed and the land alignment discussed but we understand that there are

still “many steps before tendering”.

Besides the KVMRT and HSR, other infrastructure and real estate

developments are also lined up in Greater KL/KV, providing sustainability

to construction job flows over the longer term. Syarikat Prasaran Negara

Bhd (SPAD) has completed the feasibility study on a 3rd 36km LRT line

(Bandar Utama-Klang; estd. MYR9b; source: StarBiz, 12 May), while EPF‟s

RRIM, 1MDB‟s TRX and PNB‟s Warisan Merdeka will start construction soon.

The 118-storey MYR5b Warisan Merdeka should be one of the iconic

projects under Greater KL/KV NKEA‟s EPP 7, while LRT expansion comes

under the GTP on Urban Public Transportation.

Greater KL/KV NKEA: EPP 3 (HSR), EPP 4 (KVMRT)

MRT 1. Achievements: (i) elevated guideway foundation works 78% completed; (ii) 7 TBMs delivered (10 in total); (iii) seven

underground station excavated (54% of total). The targets for 2014 comprise: (i) 90% completion of elevated piers; (ii) 80%

completion of elevated guideways; (iii) 80% completion of tunnel construction; and (iv) 80% completion of underground

station excavations.

MRT 2 & 3. Completed Final Implementation Plan after agreement with stakeholders for Economic Council/Cabinet‟s decision

which are now pending.

HSR. Completed Phase 1B Feasibility Study (Jun 2013) to include: (i) economic benefit analysis; (ii) strategic implementation

plan; (iii) required technical/ engineering components. Economic Council provided positive feedback and gave its approval to

proceed with Phase 2A which is expected to complete in 2014

Phase 2A will include: (i) G-to-G engagement and agreement; (ii) technical surveys; (iii) socioeconomic analysis on the 5 HSR

stations; (iv) environmental analysis along the track alignment; (v) set up a dedicated HSR team.

Source: ETP 2013 Annual Report

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,00020

09

2010

2011

2012

2013

2014

E

2015

E

2016

E

2017

E

2018

E

2019

E

2020

E

May 14, 2014 4

Strategy

Greater KL/KV: Rail Scheme Summary

Source: SPAD

Greater KL/KV LRT 2: Awarded contracts

Construction

value (MYR m)

Value per

km (MYR m)

Kelana Jaya line, Package A (Kelana Jaya-Summit; 9.2km;

awarded in Nov 2010)

- Main contractor: TRC (RM950m)

- Nominated sub-contractor for segmental box girder:

UEM Builders-Intria Bina JV (RM93.2m)

1,043.2 113.4

Ampang line, Package A (Sri Petaling-Kinrara; 7.4km;

awarded in Nov 2010)

- Main contractor: Bina Puri-Tim Sekata JV

(RM634.6m)

- Nominated sub-contractor for segmental box girder:

Bina Puri-Tim Sekata JV (RM67.7m)

702.3 94.9

Kelana Jaya line, Package B (Summit-Putra Heights;

8.1km; awarded on 16 Aug 2011)

- Main contractor: Sunway (RM569m)

- Nominated sub-contractor for segmental box girder:

MRCB (RM67.2m)

636.2 78.5

Ampang line, Package B (Kinrara-Putra Heights; 10.3km;

awarded on 16 Aug 2011)

- Main contractor and nominated sub-contractor for

segmental box girder: MRCB (RM1.33b)

1,330.0 129.1

TOTAL (35KM) 3,711.7 106.0

Sources: Prasarana, Companies’ announcement to Bursa

Please refer to our construction update, “Strengthened pipeline” on 24

Apr 2014 for our views and stock picks.

Greater KL/KV: LRT3 alignment

Source: StarBiz, 12 May 2014

May 14, 2014 5

Strategy

Oil & gas: Upstream, downstream to pick up

The Oil, Gas and Energy NKEA met a 97% KPI milestone in 2013 (2012:

119%, 2011: 109%). Some of the key achievements in 2013 include the start

of production at the Balai field (second marginal field to start production

after Berantai in 2012), commissioning of Petronas Gas‟ LNG Regasification

Terminal in Melaka, and completion of the Pengerang International

Petroleum Complex (PIPC) master plan, which was endorsed by the Johor

state government in 1Q13 with site preparation having started.

In 2014 YTD (Jan-Apr), the Tapis field EOR saw the installation of a central

processing platform known as Tapis-R topsides (built by MMHE) to its

jacket, while Dialog-Royal Vopak‟s independent oil storage terminal (1.3m

cu m) in Pengerang received its first cargo shipment. Most prominent is

PETRONAS‟ final investment decision for PIPC which comprises a USD16b

world scale Refinery and Petrochemical Integrated Development (RAPID)

and other associated facilities costing USD11b.

Moving forward, we expect PETRONAS‟ capex in domestic oil & gas will

remain prominent at both the upstream and downstream industries which

will benefit the domestic service providers.

Oil, gas and energy NKEA: EPP achievements in 2013, plans

Enhanced Oil Recovery (EOR). Tapis field saw completion of a central processing platform known

as Tapis-R topsides (built by MMHE and is scheduled to be installed on its jacket by 1Q14).

PETRONAS to continue exploring EOR opportunities and implement EOR techniques in suitable

fields offshore Malaysia. PETRONAS has identified 14 potential fields – 5 in Sarawak, 4 in Sabah, 5

in Peninsular, and expects to extract 750m to 1b barrels of oil from these 14 fields.

Marginal fields. Berantai field, which started production in 2012, achieved a 15% increase in

estimated recoverable gas resources. In addition, the Balai field commenced production on 7 Nov

2013. Moving forward, Vestigo Petroleum S/B, a subsidiary to PETRONAS dedicated to developing

Malaysia‟s marginal and mature fields, will play a prominent role.

Regional storage and trading hub. (i) ATT Tj Bin S/B, a 100%-subsidiary of VTTI BV, launched

Malaysia‟s largest capacity oil storage terminal (890,000 cu m) in Jan 2013. ATB Tj Bin plan to add

250,000 cu m storage capacity, to be commissioned in 2Q15. (ii) Dialog-Royal Vopak JV‟s

independent oil storage terminal (1.3m cu m) in Johor‟s Pengerang is to receive its first cargo

shipment by end 1Q14.

PGB’s LNG Regasification Terminal (RGT) in Sg Udang, Melaka. The terminal received its first

cargo on 30 Apr 2013; the terminal was commissioned on 23 May 2013. As of Oct 2013, the

terminal received a total of 19 LNG cargo.

Increasing petrochemical outputs. (i) The Sipitang Oil & Gas Industrial Park (SOGIP) master plan

(e.USD1.5b, fertiliser plant with urea production capacity of 1.2m mmtpa) was completed in Jun

2013; it is expected to start operations by 2015 (construction started in 2Q12 with >50%

completion as of Aug 2013). (ii) Completion of the Pengerang International Petroleum Complex

(PIPC) master plan, which was endorsed by the Johor state government in 1Q13 with site

preparation having started.

EPP 6 & 8. Investments made by O&G supplier, services and equipment (OGSE) companies under

the purview of Malaysia Petroleum Resources Corp (MPRC) totaled MYR1.83b (vs MYR2b target).

Source: ETP 2013 Annual Report

Please refer to our:

(i) special feature, “PETRONAS gives go-ahead for RAPID” on 4 Apr

2014 for our views and potential beneficiaries;

(ii) separate oil & gas update today, „Key takeaways from Conference‟

as we reiterate our Overweight call on the sector

May 14, 2014 6

Strategy

Consumer discretionary: Subsidy rationalisation to continue

The current phase of government subsidy rationalisation started in Sep-Oct

2013 with a 10%-11% hike in fuel (RON95 & diesel) prices and the removal

of sugar subsidy. This was followed by an 11% rise in Tenaga‟s gas price

procured from PETRONAS and an average 14.9% hike in electricity tariff on

Jan 2014. The latest round of adjustment was the 20% industrial gas price

hike by Gas Malaysia this month. By the look of things so far, there seems

to be a subsidy rationalisation effort every 3-4 months. We expect further

rounds of fuel and electricity tariff hikes into early-2015.

Consequently, we remain cautious on the consumer discretionary sub-

sector as further subsidy rationalisation coupled with the GST

implementation from Apr 2015 (which widens the scope of indirect taxes)

would cap sentiment into 2015. Already sentiment has weakened; latest

MIER consumer sentiment index shows that the index level has fallen to

below the 5-year average for three consecutive quarters, 3Q13-1Q14, just

after the current phase of subsidy rationalisation started.

MIER consumer sentiment index: At below 5-year average

Source: MIER

GLCs’ asset/investment divestments to continue

The SRI on Reducing Government‟s Role in Business achieved a 57% KPI

milestone in 2013 (2012: 91%). The shortfall was in the number of

companies divested (see table overleaf). The divestment also involves the

sale of government linked companies‟ (GLC) ownership in public-listed

companies. To date, 33 companies have been identified for divestment of

which, 23 have been successfully divested as at Nov 2013. This includes

Khazanah Nasional‟s sale of its entire holdings in Digi.Com in Oct 2013.

Other prominent PLC share sale by Khazanah in the last 12M, we observe,

were on MAHB, Tenaga and Time Engineering.

50

60

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90

100

110

120

130

140

150

Mar

-98

Mar

-99

Mar

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-03

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Mar

-13

Mar

-14

MIER consumer sentiment index 5-year (2009-13) average

May 14, 2014 7

Strategy

Reducing Government’s Role in Business SRI: 2013 target and achievements

No. KPI Target Actual

1 Number of companies divested 4 1

- Two companies under Ministry of Works divested 100% 0%

- One company under Ministry of Youth and Sports divested * 100% 100%

- One company under Ministry of Federal Territories divested 100% 0%

2 Divestment of GLC companies: 33 companies

2011-2012 = 24 companies

2013 and beyond = 9 companies

(Note: Divestment means disposal of shares from GLIC to private sector through a listing, stake pare down or outright sale)

9 8

KPI achievement 57%

* Refers to Stadium First S/B, a subsidiary of Stadium Malaysia Corporation, sold via an open tender process, completed in Jun 2013; Source: ETP 2013 Annual Report

GLC divestments would need to be a continuing theme to raise the level of

liquidity in the Malaysian bourse, in our view. Based on our review in Nov

2013, the combined GLC holdings in Malaysian equities was about 34.5% for

the top 100 market cap stocks and a higher 39.6% for KLCI: EPF (11.2%),

PNB (8.7%), Khazanah (8.5%), and PETRONAS (9.8%). We expect Khazanah

to pare its stake in Astro, MAHB, IHH, Telekom, Axiata, Tenaga and UEMS,

being matured investments. This could be “off-set” by a restructuring at

MAS which is imminent, we think, after the tragic MH370 incident.

GLC divestment achievement, per ETP 2011 and 2012 ARs

2011 11 DIVESTMENTS COMPLETED

Khazanah Sale of its entire 32.21% stake in Pos Malaysia to DRB-Hicom (Apr)

Khazanah Sale of its 10% stake in EON Capital to Hong Leong Bhd (May)

Felda Listed MSM Malaysia Holding, which incorporates 5 out of 7 companies identified for listing under the GLIC divestment programme (Jun)

Boustead Announcement on a series of corporate exercises to pare down its 97.81% stake in Pharmaniaga to 55% to comply with listing requirements on public

free float (Jul)

Khazanah Joint offer from UEM Group and EPF for PLUS divestment (Nov); via the co-investment, PLUS is now 51% owned by UEM Group, 49% by EPF

2012 4 DIVESTMENTS COMPLETED

EPF Lowered its holdings in RHB Cap to 40.7% after the RHB Cap-OSK Holdings

merger (Dec)

Felda Listed Felda Global Ventures (Jun)

LTAT Sale of 97% stake in Johan Ceramics to Boustead Holdings (Sep)

Ekuinas Sale of 24% stake in Tanjung Offshore (Nov)

Other GLC divestments (apart from the 33 GLCs identified under the SRI)

Khazanah Listed IHH Healthcare (Jul)

Khazanah Sale of its entire 42.7% stake in Proton Holdings to DRB-Hicom

Khazanah Invited tenders for STLR Sdn Bhd which is involved in property investment

Khazanah Started sale process of its entire 45% stake in Time Engineering

Khazanah Divested 60m Tenaga shares, lowering its holding to 34% from 35.2%

MoF Inc Sale of its 40% stake in Kedah Aquaculture Sdn Bhd to SKS Realty Sdn Bhd

PNB Invited tenders for companies identified to be sold: FEC Cables, U-Travelwide, U-Insurance and Inobel

Johor govt Stated discussions to streamline Johor Corp‟s core holdings to focus on oil palm plantations, healthcare, property and the food industry.

Source: ETP 2011 and 2012 Annual Reports

May 14, 2014 8

Strategy

Market shareholding (top 100 stocks), Nov 2013 Market shareholding (KLCI 30 stocks), Nov 2013

Source: Maybank KE Source: Maybank KE

Khazanah’s Malaysia PLC holdings

Listed GLCs Maybank KE’s call

(target px)

Khazanah's

stake

Khazanah's

stake

Market cap Khazanah's

holding worth

31-Mar-13 31-Mar-14 12-May-14 12-May-14

(%) (%) (MYR'm) (MYR'm)

Tenaga BUY (MYR14.00) 33.54% 32.40% 67,610 21,906

CIMB Group HOLD (MYR8.00) 30.03% 29.19% 60,773 17,740

Axiata HOLD (MYR7.00) 38.97% 37.85% 58,793 22,253

IHH Healthcare HOLD (MYR3.80) 45.30% 45.24% 32,553 14,727

Telekom HOLD (MYR5.90) 28.73% 28.73% 22,001 6,321

Astro Malaysia HOLD (MYR3.37) 20.76% 20.61% 17,154 3,536

M‟sia Airports SELL (MYR7.03) 40.18% 36.60% 10,993 4,024

UEM Sunrise HOLD (MYR2.12) 64.81% 61.90% 10,255 6,348

Westports BUY (MYR2.70) NA 4.74% 9,718 461

MAS HOLD (MYR0.22) 69.37% 69.37% 3,509 2,434

TimedotCom HOLD (MYR4.60) 20.89% 20.89% 2,390 499

Faber Group Not Rated 32.03% 34.29% 1,093 375

Time Eng Not Rated 45.03% Nil 229 0

Total 297,072 100,623

Sources: Khazanah, Bloomberg, Maybank KE

PNB, 7.3%

EPF, 10.0%

Khazanah, 6.7%

PETRONAS, 8.0%

KWAP, Valuecap,

LTH, LTAT, Felda, 2.4%

Strategic (non-GLICs), 27.2%

Others, 38.4%

Top 100 stocks (market cap)

PNB, 8.7%

EPF, 11.2%

Khazanah, 8.5%

PETRONAS, 9.8% KWAP,

Valuecap, LTH, LTAT, Felda, 1.4%

Strategic (non-GLICs), 21.8%

Others, 38.6%

KLCI 30 stocks (market cap)

May 14, 2014 9

Strategy Maybank KE Equity Research Stock Universe

Ticker

Company FYE Price Market TP Reco

m

Core Net Profit EPS CAGR

CAGR

PER PER PER ROE Div

Yld

PBV Price

chg 12-May Cap CY13A CY14F CY15F CY13

A

CY14F CY15F 13-15 CY13A CY14F CY15F CY15

A

CY14F CY13

A

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

Autos

BAUTO MK Berjaya Auto * 4 2.09 1,681 2.38 Buy 87 131 162 11.1 16.3 20.1 34.8 18.9 12.8 10.4 34.2 2.4 6.7 26.7

MBM MK MBM Resources * 12 3.22 1,258 3.60 Buy 139 135 157 35.5 34.6 40.1 6.3 9.1 9.3 8.0 9.4 2.7 0.9 0.3

TCM MK Tan Chong # 12 5.59 3,649 6.80 Buy 293 290 370 44.8 44.4 56.6 12.4 12.5 12.6 9.9 11.5 2.1 1.4 (9.7)

UMWH MK UMW Hldgs * 12 10.70 12,501 12.44 Buy 881 956 1,070 75.4 81.8 91.6 10.2 14.2 13.1 11.7 14.5 3.8 2.0 (11.3)

Banking

MAY MK Maybank 12 9.85 87,389 NR NR 6,552 7,194 7,889 82.9 79.5 83.6 0.4 11.9 12.4 11.8 13.2 5.6 1.9 (0.9)

AMM MK AMMB Holdings 3 7.15 21,551 8.60 Buy 1,762 1,930 2,098 58.5 64.0 69.6 9.1 12.2 11.2 10.3 13.7 3.7 1.7 (1.2)

BIMB MK BIMB Holdings * 12 4.09 6,108 4.30 Hold 256 498 525 23.7 33.3 35.2 22.0 17.3 12.3 11.6 15.8 3.3 2.2 (9.9)

CIMB MK CIMB 12 7.29 60,773 8.00 Hold 4,178 4,683 5,224 55.2 56.9 63.5 7.3 13.2 12.8 11.5 13.1 3.1 1.9 (4.3)

HLBK MK Hong Leong Bk 6 14.04 25,255 16.40 Buy 1,964 2,171 2,372 110.5 120.7 131.9 9.3 12.7 11.6 10.6 14.2 2.8 1.8 (2.5)

HLFG MK HL Financial 6 15.42 16,234 17.30 Buy 1,506 1,587 1,722 144.8 152.6 165.6 6.9 10.6 10.1 9.3 13.2 2.5 1.5 (0.4)

PBK MK Public Bank 12 19.96 69,902 18.00 Sell 4,065 4,319 4,705 116.1 123.3 134.3 7.6 17.2 16.2 14.9 17.9 2.8 3.4 2.9

RHBC MK RHB Capital 12 8.41 21,420 8.40 Hold 1,831 2,019 2,219 72.9 79.3 87.1 9.3 11.5 10.6 9.7 10.7 2.2 1.3 6.5

Building Materials

AJR MK Ann Joo # 12 1.17 586 1.20 Hold 23 40 46 4.4 7.6 8.7 40.6 26.6 15.4 13.4 4.0 - 0.6 11.4

LMC MK Lafarge * 12 9.01 7,656 9.90 Buy 386 389 400 45.4 45.7 47.0 1.7 19.8 19.7 19.2 12.1 4.7 2.3 5.1

Construction / Infra

EVSD MK Eversendai * 12 1.07 828 0.98 Hold 52 76 83 6.7 9.8 10.7 26.4 16.0 10.9 10.0 8.6 2.2 0.5 2.9

GAM MK Gamuda * 7 4.56 10,514 4.45 Hold 644 687 742 27.7 31.8 34.4 11.6 16.5 14.3 13.3 13.5 2.9 2.1 (5.0)

HSL MK HSL * 12 1.91 1,050 2.30 Buy 85 104 111 15.3 18.7 19.9 14.0 12.5 10.2 9.6 15.5 2.3 2.0 2.1

IJM MK IJM Corp * 3 6.28 9,056 6.75 Buy 526 584 627 38.0 42.2 45.4 9.3 16.5 14.9 13.8 9.1 2.1 1.5 6.8

LTK MK Litrak * 3 3.85 1,983 4.45 Buy 133 142 163 26.1 27.8 31.8 10.5 14.8 13.9 12.1 26.9 4.4 4.2 (11.9)

WCT MK WCT * 12 2.26 2,454 2.55 Buy 201 189 202 17.7 17.5 18.4 2.0 12.8 12.9 12.3 8.1 3.0 1.1 10.2

CMS MK CMS * 12 9.79 3,369 10.50 Buy 175 208 252 51.6 61.3 74.2 19.9 19.0 16.0 13.2 12.8 1.9 2.0 42.5

KICB MK Kimlun Corp * 12 1.59 478 1.90 Buy 36 55 62 12.1 18.2 20.6 30.5 13.1 8.7 7.7 16.1 3.1 1.6 (5.1)

Consumer

AEON MK AEON Co * 12 14.98 5,258 13.70 Hold 231 254 278 65.8 72.3 79.1 9.6 22.8 20.7 18.9 13.8 1.4 3.2 7.0

ROTH MK BAT (M) - 12 61.50 17,560 57.00 Sell 823 893 949 288.4 312.9 332.4 7.4 21.3 19.7 18.5 158.1 4.8 34.6 (4.1)

CAB MK Carlsberg 12 12.24 3,765 12.40 Hold 184 201 204 60.2 65.7 66.6 5.2 20.3 18.6 18.4 66.7 5.0 13.6 0.5

GUIN MK Guinness 6 13.94 4,211 13.20 Hold 207 199 203 68.7 65.8 67.1 -1.2 20.3 21.2 20.8 54.8 4.7 5.7 (12.9)

RJR MK JTI 12 7.74 2,024 7.80 Hold 122 128 135 46.5 49.0 51.6 5.3 16.6 15.8 15.0 26.7 2.8 4.7 19.4

PAD MK Padini Holdings * 6 1.96 1,290 2.35 Buy 92 105 115 14.0 15.9 17.5 11.8 14.1 12.3 11.2 25.4 5.7 3.4 8.3

NESZ MK Nestle * 12 67.32 15,787 64.00 Hold 562 610 703 239.5 260.3 299.9 11.9 28.1 25.9 22.4 79.7 3.7 19.3 (1.0)

QLG MK QL Resources * 3 3.06 3,819 2.86 Hold 151 178 203 12.1 14.3 16.2 15.8 25.3 21.5 18.9 15.9 1.6 3.2 7.7

MSM MK MSM Malaysia Holdings

* 12 4.95 3,480 5.30 Hold 249 266 278 35.4 37.8 39.5 5.6 14.0 13.1 12.5 13.7 5.0 1.9 (1.0)

OTB MK Oldtown * 3 2.05 929 2.67 Buy 58 68 75 15.9 18.8 20.7 13.9 12.9 10.9 9.9 18.3 5.0 2.1 (1.4)

IHH MK IHH * 12 3.99 32,553 3.80 Hold 649 825 963 8.0 10.2 11.8 21.4 49.9 39.1 33.8 5.0 0.6 1.8 3.4

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

May 14, 2014 10

Strategy Maybank KE Equity Research Stock Universe (continued)

Ticker

Company FYE Price Market TP Reco

m

Core Net Profit EPS CAGR

CAGR

PER PER PER ROE Div

Yld

PBV Price

chg 12-May Cap CY13A CY14F CY15F CY13A

CY14F CY15F 13-15 CY13A CY14F CY15F CY15A

CY14F CY13A

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

Gaming

BST MK BToto 4 3.83 5,163 3.95 Hold 372 378 391 27.8 28.0 28.9 2.0 13.8 13.7 13.2 50.9 6.0 8.5 (3.2)

MAG MK Magnum 12 3.02 4,311 3.04 Hold 329 279 287 23.1 19.5 20.1 -6.7 13.1 15.5 15.0 11.1 5.3 1.7 (4.4)

GENT MK Genting Bhd 12 9.82 36,500 10.22 Hold 1,758 2,066 2,314 47.6 55.9 62.6 14.7 20.6 17.6 15.7 8.8 0.6 1.4 (4.3)

GENM MK Genting Msia 12 4.22 23,933 4.74 Buy 1,714 1,619 1,727 30.2 28.5 30.4 0.3 14.0 14.8 13.9 10.1 1.6 1.5 (3.7)

Manufacturin

g

HART MK Hartalega Hldgs * 3 5.78 4,319 6.70 Hold 234 234 285 31.6 29.6 35.3 5.7 18.3 19.5 16.4 20.0 2.3 4.9 (20.1)

KRI MK Kossan Rubber * 12 4.14 2,647 5.00 Buy 141 169 191 22.0 26.4 29.8 16.4 18.8 15.7 13.9 21.2 2.9 3.8 (4.2)

TOPG MK Top Glove * 8 4.69 2,911 6.00 Buy 191 196 218 30.9 31.6 35.1 6.6 15.2 14.8 13.4 13.9 3.4 2.1 (16.7)

Media

ASTRO MK Astro Malaysia 1 3.30 17,154 3.37 Hold 446 564 725 8.6 10.8 13.9 27.7 38.6 30.6 23.7 78.0 3.3 27.9 10.0

MCIL MK MCIL # 3 0.97 1,628 1.01 Hold 167 170 178 9.9 10.1 10.6 3.4 9.7 9.6 9.1 20.3 5.2 2.3 (1.0)

MPR MK Media Prima 12 2.50 2,762 2.52 Hold 214 224 230 19.2 19.3 19.9 1.8 13.0 13.0 12.6 12.8 5.6 1.7 (4.6)

STAR MK Star * 12 2.71 2,000 2.55 Buy 144 154 170 19.5 20.8 23.0 8.6 13.9 13.0 11.8 13.7 5.5 1.7 21.5

Oil & Gas

AMRB MK Alam Maritim * 12 1.55 1,242 1.90 Buy 82 98 99 10.2 12.2 12.3 9.8 15.2 12.7 12.6 12.3 0.2 2.0 (1.3)

DLG MK Dialog * 6 3.76 9,145 3.90 Buy 219 264 298 9.2 11.1 12.5 16.3 40.9 34.0 30.2 16.5 1.2 6.3 5.0

PETR MK Perdana Petro * 12 1.81 1,336 2.55 Buy 61 100 122 8.5 13.7 16.8 40.6 21.3 13.2 10.8 14.2 - 2.9 13.8

WSC MK Wah Seong * 12 2.04 1,579 1.50 Hold 42 83 91 5.5 10.8 11.8 46.5 37.1 18.9 17.3 8.2 3.7 1.3 24.5

MMHE MK MMHE * 12 3.84 6,144 4.20 Buy 237 175 331 14.8 10.9 20.7 18.3 25.9 35.2 18.6 11.3 1.3 2.4 9.7

BAB MK Bumi Armada # 12 3.90 11,437 5.00 Buy 449 471 502 15.3 16.1 17.2 6.0 25.5 24.2 22.7 9.6 - 2.6 (3.2)

YNS MK Yinson # 1 8.00 2,066 10.10 Buy 63 109 147 24.5 42.1 57.1 52.6 32.6 19.0 14.0 19.4 0.2 4.1 18.7

BARAKAH MK Barakah * 12 1.66 1,040 1.90 Buy 49 73 118 4.8 8.4 13.6 68.3 34.6 19.8 12.2 32.4 - 5.9 8.5

PPT MK Perisai * 12 1.60 1,908 1.76 Buy 62 70 151 6.3 6.0 12.6 41.4 25.4 26.7 12.7 13.2 - 1.7 0.6

SAKP MK SapuraKencana * 1 4.29 25,706 5.30 Buy 983 1,310 1,655 17.4 22.0 27.6 25.9 24.6 19.5 15.5 12.7 - 2.6 (12.4)

UMWOG MK UMW O&G - 12 4.15 8,972 5.15 Buy 167 288 485 7.7 13.3 22.4 70.6 53.9 31.2 18.5 13.5 - 3.2 3.5

Plantation

GENP MK Genting Plantn * 12 11.24 8,544 11.20 Hold 305 419 474 40.2 55.2 62.4 24.6 28.0 20.4 18.0 11.5 1.0 2.5 1.8

IOI MK IOI Corp * 6 5.05 32,081 3.95 Sell 1,601 1,395 1,270 24.9 21.7 19.8 -10.9 20.3 23.3 25.6 17.6 2.0 3.5 7.2

KLK MK KL Kepong * 9 24.40 25,985 24.00 Hold 940 1,092 1,125 88.0 102.3 105.4 9.5 27.7 23.9 23.1 13.2 2.5 3.6 (2.0)

SIME MK Sime Darby * 6 9.46 57,366 10.20 Buy 3,222 3,255 3,416 53.6 54.2 56.9 3.0 17.6 17.5 16.6 11.1 3.2 2.0 (0.6)

FGV MK Felda Global * 12 4.55 16,599 4.48 Hold 90 691 788 2.5 18.9 21.6 193.9 182.0 24.1 21.1 10.8 1.6 2.5 1.3

SOP MK Swak Oil Palms * 12 6.46 2,833 6.80 Buy 97 152 198 22.3 34.7 45.3 42.5 29.0 18.6 14.3 12.8 0.8 2.3 (0.8)

TSH MK TSH Resources * 12 3.30 2,960 3.40 Buy 114 145 164 12.9 16.0 18.2 18.8 25.6 20.6 18.1 12.8 1.5 2.7 9.6

THP MK TH Plantations * 12 2.07 1,826 1.65 Hold 63 75 97 7.2 8.6 11.0 23.6 28.8 24.1 18.8 7.6 2.1 1.5 10.1

TAH MK Ta Ann * 12 4.20 1,556 4.75 Buy 58 82 117 15.7 22.0 31.7 42.1 26.8 19.1 13.2 10.4 2.3 1.7 0.7

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

May 14, 2014 11

Strategy Maybank KE Equity Research Stock Universe (continued)

Ticker

Company FYE Price Market TP Recom

Core Net Profit EPS CAGRCAGR

PER PER PER ROE Div Yld

PBV Price chg 12-May Cap CY13A CY14F CY15F CY13

A CY14F CY15F 13-15 CY13A CY14F CY15F CY15

A CY14F CY13

A YTD

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

Non-Banking Finance

BURSA MK Bursa Malaysia 12 7.60 4,050 8.00 Hold 173 187 200 32.5 35.2 37.5 7.4 23.4 21.6 20.3 24.5 4.6 5.0 (7.7)

MPHB MK MPHB Capital 12 1.92 1,373 2.42 Buy 65 63 68 11.9 6.8 8.8 -13.9 16.2 28.2 21.8 5.7 0.7 1.3 14.3

Petrochemica

ls

PCHEM MK Petronas Chem * 12 6.79 54,320 6.85 Hold 3,156 3,659 3,712 39.5 45.7 46.4 8.4 17.2 14.9 14.6 14.8 3.4 2.3 (1.9)

Property

AXRB MK Axis REIT * 12 3.45 1,591 2.71 Hold 89 91 94 19.4 19.8 20.6 3.0 17.8 17.4 16.7 9.4 5.6 1.6 17.7

KLCC MK KLCC Prop * 12 6.47 11,681 6.25 Hold 626 652 675 34.7 36.1 37.4 3.8 18.6 17.9 17.3 6.1 5.1 0.9 10.6

MSGB MK Mah Sing * 12 2.29 3,269 2.44 Hold 281 349 428 17.3 25.2 30.8 33.4 13.2 9.1 7.4 17.7 4.4 1.7 1.3

QUIL MK Quill Capita 12 1.14 445 1.16 Hold 35 36 38 8.9 9.3 9.7 4.4 12.8 12.3 11.8 7.1 6.9 0.8 (3.4)

SPSB MK SP Setia # 10 2.99 7,352 3.36 Hold 428 503 626 18.1 20.5 25.4 18.5 16.5 14.6 11.8 10.3 4.1 1.3 (0.7)

ULHB MK UEM Sunrise * 12 2.26 10,255 2.12 Hold 579 579 544 13.0 13.0 12.2 -3.1 17.4 17.4 18.5 8.0 1.9 1.8 (4.2)

SWB MK Sunway Berhad * 12 2.98 5,136 2.79 Hold 483 501 516 30.6 29.0 30.0 -1.0 9.7 10.3 9.9 8.4 1.9 0.9 9.6

GLMC MK Glomac * 4 1.08 785 1.20 Hold 149 112 139 13.5 15.4 19.1 18.9 8.0 7.0 5.7 13.7 4.3 0.9 (3.6)

CMMT MK CMMT 12 1.50 2,664 1.74 Buy 149 230 165 8.4 8.5 9.1 4.1 17.9 17.6 16.5 7.3 6.4 1.3 7.1

SREIT MK Sunway REIT 6 1.38 4,038 1.24 Hold 219 230 222 7.5 7.9 9.1 10.2 18.4 17.6 15.2 7.4 5.9 1.1 11.3

IGBREIT MK IGB REIT 12 1.20 4,122 1.24 Hold 207 217 222 6.1 6.3 6.5 3.2 19.7 19.0 18.5 6.1 5.2 1.1 0.8

PREIT MK Pavilion REIT 12 1.38 4,156 1.53 Buy 210 227 230 7.0 7.5 7.6 4.2 19.7 18.4 18.2 6.9 5.7 1.3 7.8

Telecommunications

DIGI MK DiGi.Com * 12 5.55 43,151 5.00 Hold 1,706 1,860 1,908 21.9 23.9 24.5 5.8 25.3 23.2 22.7 288.6 4.3 61.7 11.9

T MK Telekom * 12 6.15 22,001 5.90 Hold 1,039 979 1,055 29.0 27.4 29.5 0.9 21.2 22.4 20.8 14.4 4.0 3.1 10.8

AXIATA MK Axiata * 12 6.87 58,793 7.00 Hold 2,900 2,809 3,028 34.0 32.9 35.4 2.0 20.2 20.9 19.4 14.4 3.6 3.0 (0.4)

MAXIS MK Maxis * 12 6.91 51,861 7.20 Hold 1,765 2,054 2,128 23.5 27.4 28.4 9.9 29.4 25.2 24.3 50.9 5.8 8.6 (5.0)

TDC MK Time dotCom * 12 4.17 2,390 4.60 Hold 260 120 132 45.4 21.0 23.0 -28.8 9.2 19.9 18.1 5.9 1.6 1.2 17.5

Transport

AIRA MK AirAsia # 12 2.26 6,286 2.65 Buy 418 705 710 15.0 25.3 25.5 30.4 15.1 8.9 8.9 11.5 2.2 1.3 2.7

AAX MK AirAsia X * 12 0.76 1,790 1.06 Buy (22) 168 293 -0.9 7.1 12.4 n.a. n.a. 10.6 6.1 13.2 - 1.4 (24.1)

MAHB MK MAHB 12 8.00 10,993 7.03 Sell 362 391 461 29.4 28.8 34.0 7.5 27.2 27.8 23.5 7.6 2.0 2.1 (11.1)

MAS MK MAS * 12 0.21 3,509 0.22 Hold (1,083

)

-221 241 -6.0 -1.0 1.0 n.a. n.a. n.a. 21.0 5.9 - 0.9 (32.3)

WPRTS MK Westports * 12 2.85 9,718 2.70 Buy 435 484 484 12.8 14.2 14.2 5.3 22.3 20.1 20.1 26.2 3.7 6.1 12.6

NCB MK NCB Holdings * 12 3.16 1,486 3.60 Hold 54 140 148 11.4 29.8 31.4 66.0 27.7 10.6 10.1 9.1 3.2 1.0 (9.7)

MISC MK MISC * 12 6.45 28,791 7.20 Buy 1,529 1,581 1,705 34.2 35.4 38.2 5.7 18.9 18.2 16.9 5.9 - 1.2 13.2

Utilities

TNB MK Tenaga * 8 11.98 67,610 14.00 Buy 4,409 5,251 5,515 78.7 93.0 97.7 11.4 15.2 12.9 12.3 12.7 2.5 1.9 5.3

PTG MK Petronas Gas * 12 23.48 46,461 23.50 Hold 2,141 1,668 1,729 108.2 84.3 87.4 -10.1 21.7 27.9 26.9 15.3 2.5 4.5 (3.3)

GMB MK Gas Msia * 12 3.60 4,622 3.80 Hold 171 182 192 13.4 14.2 14.9 5.4 26.9 25.4 24.2 19.1 3.9 4.6 (7.0)

YTLP MK YTL Power # 6 1.63 11,072 1.84 Hold 1,038 1,055 1,051 14.6 14.9 14.8 0.7 11.2 11.0 11.0 7.8 0.6 1.1 (9.4)

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

May 14, 2014 12

Strategy

Research Offices

REGIONAL

WONG Chew Hann, CA

Regional Head of Institutional Research

(603) 2297 8686 [email protected]

ONG Seng Yeow

Regional Head of Retail Research

(65) 6432 1453 [email protected]

Alexander GARTHOFF

Institutional Product Manager

(852) 2268 0638 [email protected]

ECONOMICS

Suhaimi ILIAS

Chief Economist

Singapore | Malaysia

(603) 2297 8682 [email protected]

Luz LORENZO

Philippines

(63) 2 849 8836 [email protected]

Tim LEELAHAPHAN

Thailand (662) 658 1420 [email protected]

JUNIMAN

Chief Economist, BII

Indonesia

(62) 21 29228888 ext 29682 [email protected]

Josua PARDEDE

Economist / Industry Analyst, BII

Indonesia

(62) 21 29228888 ext 29695 [email protected]

MALAYSIA

WONG Chew Hann, CA Head of Research (603) 2297 8686 [email protected] • Strategy • Construction & Infrastructure

Desmond CH’NG, ACA (603) 2297 8680 [email protected] • Banking & Finance

LIAW Thong Jung (603) 2297 8688 [email protected] • Oil & Gas - Regional • Shipping

ONG Chee Ting, CA (603) 2297 8678 [email protected] • Plantations - Regional

Mohshin AZIZ (603) 2297 8692 [email protected] • Aviation - Regional • Petrochem

YIN Shao Yang, CPA (603) 2297 8916 [email protected] • Gaming – Regional • Media

TAN Chi Wei, CFA (603) 2297 8690 [email protected] • Power • Telcos

WONG Wei Sum, CFA (603) 2297 8679 [email protected] • Property & REITs

LEE Yen Ling (603) 2297 8691 [email protected] • Building Materials • Glove Producers

CHAI Li Shin (603) 2297 8684 [email protected] • Plantation • Construction & Infrastructure

KANG Chun Ee (603) 2297 8675 [email protected] • Consumer

Ivan YAP (603) 2297 8612 [email protected] • Automotive

LEE Cheng Hooi Regional Chartist (603) 2297 8694 [email protected]

Tee Sze Chiah Head of Retail Research (603) 2297 6858 [email protected]

HONG KONG / CHINA

Howard WONG Head of Research (852) 2268 0648 [email protected] • Oil & Gas - Regional

Alexander LATZER (852) 2268 0647 [email protected] • Metals & Mining - Regional

Jacqueline KO, CFA (852) 2268 0633 [email protected] • Consumer

Karen KWAN (852) 2268 0640 [email protected] • Property & REITs

Osbert TANG, CFA (852) 21 5096 8370 [email protected] • Transport & Industrials

Philip TSE, CFA FRM (852) 2268 0643 [email protected] • Property & REITs

Ricky WK NG, CFA (852) 2268 0689 [email protected] • Utilities & Renewable Energy

Simon QIAN, CFA (852) 2268 0634 [email protected] • Telecom & Internet

Steven ST CHAN (852) 2268 0645 [email protected] • Banking & Financials

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

William YANG (852) 2268 0675 [email protected] • Technology – Regional

INDIA

Jigar SHAH Head of Research

(91) 22 6623 2601

[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

May 14, 2014 13

Strategy

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

DISCLAIMERS

This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate

and that each security‟s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction‟s stock exchange in the equity analysis. Accordingly, investors‟ returns may be less than

the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.

The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank

Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees (collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.

This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking

statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.

MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit

business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent permitted by law, act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report.

This report is prepared for the use of MKE‟s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect.

This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only

under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.

Malaysia

Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.

Singapore

This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.

Thailand

The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the

perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) does not confirm nor certify the accuracy of such survey result.

Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET. MBKET accepts no liability whatsoever for the actions of third parties in this respect.

US

This research report prepared by MKE is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the

Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the US. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You

should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant legislation and regulations.

UK

This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any

responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

May 14, 2014 14

Strategy

Disclosure of Interest

Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies.

Singapore: As of May 14, 2014, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.

Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.

Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph

16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.

As of May 14, 2014, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.

MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in

issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report.

OTHERS

Analyst Certification of Independence

The views expressed in this research report accurately reflect the analyst‟s personal views about any and all of the subject securities or issuers; and no part of the research analyst‟s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.

Reminder

Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable

of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

Definition of Ratings

Maybank Kim Eng Research uses the following rating system

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

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

SELL Return is expected to be below -10% in the next 12 months (excluding dividends)

Applicability of Ratings

The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.

DISCLOSURES

Legal Entities Disclosures

Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim Eng

Securities (“PTKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange

Commission. Vietnam: Maybank Kim Eng Securities JSC (License Number: 71/UBCK-GP) is licensed under the State Securities Commission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) US: Maybank

KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.

May 14, 2014 15

Strategy

Malaysia Maybank Investment Bank Berhad

(A Participating Organisation of

Bursa Malaysia Securities Berhad)

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Maybank Kim Eng Research Pte Ltd

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Inc

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Stockbroking Business:

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Indonesia PT Maybank Kim Eng Securities

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India Kim Eng Securities India Pvt Ltd

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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

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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

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Saudi Arabia In association with

Anfaal Capital

Villa 47, Tujjar Jeddah

Prince Mohammed bin Abdulaziz

Street P.O. Box 126575

Jeddah 21352

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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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