Regional Market Focusresearch.cyberquote.com.hk/page/htm/kc/share_companyrpt/suppor… · Regional Market Focus 30 May 2013 2 of 15 Strategy - Country Strategy: Thai, 8 May / China

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MCI (P) 137/11/2012 Ref No: RM2013_0102 1 of 15

Regional Market Focus

Phillip Securities Research Pte Ltd

30 May 2013

Singapore Boustead Singapore – Update Recommendation: Buy Previous Close: S$1.39 Fair Value: S$1.935 (raised from S$1.80) Company Overview Boustead operates market leading infrastructure related businesses: Geospatial Technology (28% PBT), Industrial Property Design & Build + Property Portfolio (58%), Water & Wastewater Engineering (1%), and Energy (13%) Related Engineering. Boustead also generates strong excess cash. Whats in the news? • Energy Orderbook has surged by about S$90m since March YE as Boustead’s direct fired heater and waste heat recovery systems get more orders globally. • Orders are outside the Middle East where margins are significantly better, reflecting the benefits of being a global operation. • Management guides positively for Energy orders as they see demand firm up. The Shale story in the USA is potentially something to watch for as refining capex picks up there, Boustead being 1 of 4 global players at the heart of the refining process. • Surge in Energy orders offsets weakness in Real Estate solutions, plus modest recovery in Water orders gives total orderbook backlog of S$379m (versus S$397m for last FY start). How do we view this? • FYMar13 saw a 46% surge in reported PATMI (S$81.4m vs S$55.6m y-y) due to early project completion, non-core investment gains, writeback of overprovision of taxes, all on the back of outperformance in core-earnings. The result blew past our PATMI expectations of S$67.5m. Dividend payout declared for the full FY turned out to be S$0.07, exactly as forecasted. • The key takeaway is to realize that at the core earnings level, segmental earnings from the 4 business groups far exceeded our estimate of S$91.1m to clock in at S$106.1m, which is 52% above previous year’s S$69.7m. Core-profitability is thus at a new level. • On the back of this, we estimate that core-profitability for FYMar14f would be S$93.5m (versus our previous estimate of S$88.6m), driven by energy and water orders making up for some lost ground from the real estate segment. In addition, recurring non-orderbook earnings from the industrial portfolio and geospatial segment continue to grow. Investment Actions Maintain BUY with a raised TP of S$1.935 from S$1.80 as core-profitability has increased. At current price the stock is trading at 10.1x FYMar14 EPS or 5.1% FYMar14 DPS. Courts Asia – Results Recommendation: Buy Previous close: S$1.06 Fair value: S$1.14 • 4Q13 results beat expectations on lower expenses, although sales in Singapore were below expectations • Continue to expect stronger revenue growth in FY2014, driven by opening of new stores, benign credit quality • Maintain “Buy” with unchanged TP of S$1.14, based on DCF valuation, assuming 7.1% WACC, 3.0% terminal g.

Thailand Delta Electronics – Company Update Recommendation: Buy Previous close: Bt38.75 Fair value: Bt46

• DELTA posted stronger-than-expected earnings in 1QCY13 on wider gross margin and effective cost cutting strategy, pulling marketing expense sharply lower. • Earnings in 2QCY13 are expected to soften q-q but overall performance appears to be upbeat and thus we upgrade our CY13 earnings outlook. • We rate DELTA a ‘BUY’ with a revised-up target price to Bt46/share.

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Regional Market Focus

30 May 2013

2 of 15

Strategy

- Country Strategy: Thai, 8 May / China & HK, 24 Apr / S’pore, 8 Mar - Global Macro, Asset Strategy: ASEAN, 8 May / 12 Apr, Update / US, 20 Mar / 4 Mar, Update

Morning Commentary STI: -1.13% to 3367.5 KLCI: +0.41% to 1783.5 JCI: +0.47% to 5200.7 SET: -1.11% to 1601.6 HSI: +1.61% to 22554.9 HSCEI: -1.55% to 10751.3 Nikkei: +0.10% to 14326 ASX200: +0.08% to 4974.7 Nifty: -0.11% to 6104.3 S&P500: -0.70% to 1648.4 MARKET OUTLOOK: By Joshua Tan, Head of Research Equities are actually looking a little vulnerable, as rebounds are being sold into. Could this be the correction everyone is waiting for? The STI, Hang Seng, SET, and Nikkei have all sold off from their 20dma with solid candlesticks closing lower, bearish divergences are also evident. ASX200 continues to doji below the 100dma. The S&P500’s chart pattern is a little more positive, but bear in mind last few days price action indicates indecision. Usual concern sighted is withdrawal of Fed QE by year end. Our view is that such a withdrawal may provoke a selloff, but is also a signal that the US economy is actually strong enough to stand on its own – in such a case, a selloff may eventually give way to significant buying back in. Thus we view any significant correction as a buying opportunity. In terms of improving global fundamentals, forward looking data in the US is actually quite encouraging, monetary policy in JP seems to be reviving confidence at least, and the rate of contraction in the EZ is easing. China, although we are positive, remains a concern, but structural reform announcements scheduled for Oct13 could be catalytic As we said at year start: 2013 is the year for stocks. Our OWs are the US, SG, HK, CN, TH, PH, ID. (Please see our Global Macro Asset Strategy reports for ETF and CFD instruments to trade the macro outlook. PhillipUT Wrap Account offers tactical asset allocation of unit trusts without front loading sales charge.)

Macro Data

By Ng Weiwen & Roy Chen Consistent with our expectations, Bank of Thailand cut the one-day repo rate by 25 bps to 2.5% in May (the first rate cut since Oct last year) , on account of an easing in growth momentum (esp. after Mon’s weaker-than-expected April industrial production print) as well as relatively benign inflation. Capital controls are also under consideration to curb the strength of the baht.

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Regional Market Focus

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Singapore The benchmark STI closed lower at 3.367.47 (-1.13%). The 4.2bn shares traded

were worth S$2.0bn in value. Our analysts are positive with "BUY"s on both Boustead (Higher core-

profitability) and Courts Asia (Strong sales growth expected). Top picks for the year are Pan United (Buy, TP: S$1.21), SIAEC (Buy, TP:

S$6.10) & Boustead Singapore (Buy, TP: S$1.80). Pan United is a dominant supplier to the construction industry in Singapore and we expect the company to perform well given the strong pipeline of infrastructure work over the next few years. SIAEC is a key beneficiary of the aviation growth story in the region and offers excellent dividend yields. There are hidden gems within Boustead Singapore and we believe that the stock would continue to re-rate as the market appreciates the economic moat in its businesses.

Close +/- % +/-FSSTI 3367.47 -38.61 -1.13P/E (x) 13.83P/Bv (x) 1.51

2.95Dividend Yield

STRAITS TIMES INDEX

2500

2700

2900

3100

3300

3500

3700

5/29 8/29 11/29 2/28

Source: Bloomberg

Thailand The SET index held steady in the morning session before it traded in the red and

finished the session down 17.96 points at 1,601.61 points on Wed after the BOT’s MPC cut policy interest rate by 25 bps in line with market expectations and QE concerns returned to the fore.

The overall market picture is quite fragile in the absence of strong positive catalysts to drive a sustainable rebound while continued heavy foreign sell-offs of equities and bonds to the tune of Bt4.5bn and Bt8.6bn respectively after the MPC’s rate cut and concerns about US QE exit continued to be used as an excuse to take profits. The Thai baht weakened further to 30.22 to the US dollar this morning (0755 hrs Thailand time).

In our view, the bias will remain to the downside for the SET index today and any rebound will be limited. Failure to hold above 1600 could open up an opportunity for a pullback towards 1580 and cut loss if the SET index breaks down below 1580.

Today we peg resistance for the SET index at 1610-1625 and support at 1597-1582.

Close +/- % +/-SET INDEX 1601.61 -17.96 -1.11P/E (x) 18.32P/Bv (x) 2.55

2.69Dividend Yield

STOCK EXCH OF THAI INDEX

900

1000

1100

1200

1300

1400

1500

1600

1700

5/30 8/30 11/30 2/28

Source: Bloomberg

Indonesia

The Jakarta Composite Index (JCI) advanced on Wednesday (29/05), the positive market in Asia bring the JCI to the positive path. The JCI gained 24.458 points, or 0.47%, at 5,200.693. The advance on Wednesday included six from all major industry groups, led by Infrastructure sector that gained 1.87%, followed by the upbeat sentiment in construction sector with 1.62%, and consumer goods sector which is contribute 1.34% to JCI. The LQ45 index added 4.642 points or 0.53% at 876.192, with 21 of its 45 blue-chip stocks ended in green. JCI gain positively in the market despite there is negative sentiments in Asia after IMF cut its estimate for China's economic growth in 2013 and 2014. 151 shares were declines and 120 shares advances Wednesday on the Indonesia Stock Exchange, where 5.43 billion shares worth IDR 7.46 trillion traded on the regular board. Foreign investors accumulated net sale of IDR 888.287 billion.

Indonesian stocks may move lower today. Amid worries from US market over global-growth prospects and fears from Federal Reserve will begin to scale back its bond-buying program. Negative data comes from Asia and foreign investors slowed their purchases of Japanese equity. We expect the JCI to move bearish, with support and resistance at 5,120 and 5,264.

Close +/- % +/-JCI Index 5200.69 24.46 0.47P/E (x) 19.65P/Bv (x) 3.16

1.96Dividend Yield

JAKARTA COMPOSITE INDEX

3400

3900

4400

4900

5400

5/30 8/30 11/30 2/28

Source: Bloomberg

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Sri Lanka The Colombo bourse ended the trading day on a positive note; this was having

recorded negative closures for the past two trading days. The benchmark ASPI Index closed 21.11 points or 0.33% higher at 6,455.81 and the S&P SL20 stood at 3,644.64 gaining 17.68 points or 0.49%. As at the day’s closure the market capitalization stood at LKR 2.48Tn resulting in a YTD gain of 14.37%. The market PER and PBV stood at 17.53 and 2.38 respectively. The recorded turnover for the day amounted to LKR 906.12Mn; this was a gain of 62.66% against the previous trading day. Under the sectorial round-up ,Investor attractions were largely visible on Bank Finance & Insurance (BFI) sector, with 4,243 trades out of the total 10,705 trades being lodged within the day, hence assisting the sector to emerge as the top contributor under the sectorial summary providing LKR 300.96Mn (this accounts 33.21% of the daily aggregate turnover). Manufacturing (MFG) sector made a notable subscription of LKR 124.45Mn to the daily turnover. Shares totaling up to 49.25Mn were traded during the day resulting in an increase of 35.83% compared to the previous trading day. Price gainers outperformed the price losers by 119:86. Foreign participants appeared to be bullish during the day for the 14

th consecutive trading day resulting in a net

foreign inflow of LKR 102.47Mn; this extended the year to date net foreign inflow to record LKR 13.38Bn. In regard to the local FOREX market, the USD closed at LKR 128/- selling and LKR 124.95/- buying.

Close +/- % +/-CSEALL Index 6455.81 21.11 0.33P/E (x) 12.51P/Bv (x) 1.87

2.51

Dividend Yield

SRI LANKA COLOMBO ALL SH

4500

5000

5500

6000

6500

7000

5/30 8/30 11/30 2/28

Source: Bloomberg

Australia The Australian share market closed flat on Wednesday, with the benchmark

S&P/ASX200 index edging four points higher at 4,974.7 points. Today(30/05/13), the Australian share market is set to open lower as forecasts of

slower global economic growth caused falls on overseas markets. Wall Street and European markets dropped after the Organisation for Economic Cooperation and Development trimmed its world economic growth forecast for 2013 to 3.1 per cent from 3.4 per cent.

In local economic news on Thursday, the Australian Bureau of Statistics releases private new capital expenditure and expected expenditure data for the March quarter, and building approvals figures for April.

In company news, Wesfarmers chief executive Richard Goyder and ASX chief executive Elmer Funke Kupper are among the speakers at the Stockbrokers Association of Australia annual conference in Sydney.

Close +/- % +/-S&P/ASX 200 INDEX 4974.73 4.08 0.08P/E (x) 20.21P/Bv (x) 1.93

6.01

STANDARD & POORS/ ASX 200 INDEX

Dividend Yield

3800

4000

4200

4400

4600

4800

5000

5200

5400

5/30 8/30 11/30 2/28

Source: Bloomberg

Hong Kong

The Hang Seng Index closed today at 22554.93, down 369.32 points or 1.61% for the first time in three days on Wednesday. This is in line with a broader worldwide sell-off as strong US data fanned investors speculation that Federal Reserve may taper its bond buying programme.

Close +/- % +/-HSI INDEX 22554.93 -369.32 -1.61P/E (x) 10.39P/Bv (x) 1.42

3.19Dividend Yield

HANG SENG INDEX

17000

18000

19000

20000

21000

22000

23000

24000

25000

5/30 8/30 11/30 2/28

Source: Bloomberg

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Market News

US West Texas Intermediate crude traded near the lowest price in four weeks after an industry report showed U.S. stockpiles rose the most

in a month. The oil market is balanced, Saudi Arabia said before OPEC meets tomorrow. Futures were little changed in New York after dropping 2 percent yesterday, the biggest decline since May 1. U.S. crude inventories rose 4.4 million barrels in the seven days to May 24 for a fifth weekly gain, the American Petroleum Institute said. (Source: Bloomberg)

Singapore DBS Bank has launched its first Singapore-cleared yuan denominated bonds. It is selling 500 million yuan (S$103 million) of three-year

senior notes on Wednesday. Orders within the first two hours have reached over one billion yuan, sources told The Business Times. The initial price guidance for the yuan notes, the first issuance by a local Singapore bank, is 2.7 per cent, according to the term sheet seen by BT. (Source: BT Online)

Thailand The Bank of Thailand’s Monetary Policy Committee slashed its policy interest rate by 25 bps to 2.5%. Bangkok Bank believed the rate cut

did not help stimulate economic recovery but it would only provide a short-term boost while the Federation of Thai Industries (FTI) said the 25-bps rate cut was not enough to boost competitiveness though the baht weakened to 30 to the US dollar. (Source: Krungthep Turakij)

The OECD cut its global economic growth forecasts for 2013-14 to 3.1% and 4% from its previous estimates in Nov 2012 of 3.4% and 4.2% respectively. (Source: Krungthep Turakij)

Thailand's ranking moved up three notches in the World Competitiveness Survey over its 2012 ranking, the International Institute for Management Development (IMD) says. The country stood at 27th in the survey released Wed by the IMD, up from 30th last year. However, Thailand needed to improve infrastructure in technology, education, science, access to public health and environment issues, it added. (Source: Bangkok Post)

Hong Kong The International Monetary Fund cut its growth forecast for China this year to 7.75 per cent from a previous 8 per cent, citing a weak

world economy and exports, and said the country's priority should be on reining in social financing growth. The IMF also recommended China conduct fiscal stimulus if growth falls below the IMF's forecast, David Lipton, the first managing director of the IMF, told a media briefing on Wednesday. (Source: BT Online)

Indonesia The government will reduce the issuance of Government Securities (SBN) next year. This is to keep the ratio of debt over the gross

domestic product (GDP) at the level of 22 percent -23 percent. While the domestic debt denominated in foreign currencies needs to be taken into a serious consideration. The Minister of Finance, said the debt financing in 2014 will be carried out carefully, one of which is by maintaining debt ratio at the level of 22 – 23 percent. Therefore, the government needs to reduce the fiscal deficit and primary deficit balance. (Source: Indonesia Finance Today)

The government is pessimistic Federal Reserve (Fed) will end quantitative easing (QE) early. Government is optimistic macroeconomic assumptions in the 2013 Revised State Budget, especially the exchange rate, will be achieved. In 2013 Revised State Budget Draft, the assumption of macro economic growth is set to 6.2 percent, inflation at 7.2 percent and the exchange rate of IDR 9,600 per U.S. dollar. In addition, the assumptions of three-month Treasury Bills is at 5.0 percent, Indonesian Crude Price (ICP) of USD 108 per barrel, oil lifting of 840,000 barrels of oil per day, and gas lifting of 1.24 million barrels per day.

Raising on subsidized fuel prices may drive inflationary pressures to a level of 7.2 percent and increase the poverty rate by 1.6 percent or four million people. It worsens the national poverty and is estimated to exceed the target of 9.5 -10.5 percent to be -12.1 percent - 11.85 percent at the end of year. Minister for National Development Planning, said the impact of rising poverty rate must be anticipated through a special program. The government has budgeted up to IDR 30.1 trillion compensation fund to cope with increasing poverty. (Source: Indonesia Finance Today)

Sri Lanka Sri Lanka's Treasuries yields were steady at Wednesday's auction with the 3-month yield down 02 basis points to 8.73 percent and other

maturities flat. The 6-month yield was flat at 9.90 percent and the 12-month yield was 10.86 percent. 1.4 billion rupees in 3-month bills, 4.9 billion in 6-month and 17.3 billion rupees in 12-month bills were sold. The debt office offered 15 billion rupees in maturing bills and accepted 23.6 billion rupees in bids from the auction. Tomorrow Sri Lanka is offering 2.0 billion rupees in a 30-year long bond auction. (Source: lankabusinessonline.com)

Sri Lanka is selling 30-year long bonds for the first time this week which fill a need for long term gilts, help better manage the state debt stock and extend a risk free yield curve. The department of public debt manages and issues debt for the Treasury. It is offering 2.0 billion rupees of 30 year bonds maturing on June 01, 2043 with a coupon of 9.0 percent at an auction on May 30. On Tuesday a five year bond maturing on April 01, 2018 was quoted at 11.08/12 percent. A 19 year bond maturing on 2032 was quoted around 11.90/12.10 percent. (Source: lankabusinessonline.com)

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Australia Wesfarmers shares fell to a seven-week low after the retail, energy, mining and insurance conglomerate dashed investor hopes it would

use billions in cash reserves to fund a special dividend. At the company's annual strategy briefing in Sydney, managing director Richard Goyder told analysts the company instead was looking to invest for future growth. Shares in Wesfarmers spiked to a six-year high this month after Merrill Lynch analyst David Errington issued a report saying the company could be carrying as much as $3.6 billion in excess capital by the end of next financial year, and would likely return much of that to shareholders in the form of higher dividends. (Source: The Australian)

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83.66 -0.52% 284.27 -0.57%

104.23 +1.66% 2.115 -0.05%

1,393.10 -0.12% 15,302.80 -0.69%

549.44 -0.54% MSCI SEA 934.05 -0.81%

2,786.54 -1.74% 51.9

Source: Bloomberg

MSCI Asia x-Japan

JPM Global Composite PMI SA

ThomReuters/JefferiesCRB

DJI

Crude oil, Brent (US$/bbl) US Treasury 10yr Yield

Euro Stoxx 50

Dollar Index

Gold (US$/Oz)

1.20

1.40

1.60

1.80

2.00

2.20

2.40

May-1

2

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

700

750

800

850

900

950

1,000

May-1

2

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

11,000

12,000

13,000

14,000

15,000

16,000

May-

12

Jun

-12

Jul-1

2

Au

g-

12

Se

p-

12

Oct-1

2

Nov-

12

Dec-

12

Jan

-13

Feb-

13

Mar-

13

Ap

r-13

2,0002,1002,2002,3002,4002,5002,6002,7002,800

May-1

2

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

48

49

50

51

52

53

54

55

56

May-1

2

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

1,500

1,600

1,700

1,800

May-1

2

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

78

80

82

84

May-1

2

Ju

n-1

2

Ju

l-12

Au

g-1

2

Se

p-1

2

Oct-1

2

No

v-1

2

De

c-1

2

Ja

n-1

3

Fe

b-1

3

Mar-1

3

Ap

r-13

260

280

300

320

340

May-1

2

Ju

n-1

2

Ju

l-12

Au

g-1

2

Se

p-1

2

Oct-1

2

No

v-1

2

De

c-1

2

Ja

n-1

3

Fe

b-1

3

Mar-1

3

Ap

r-13

90

100

110

120

130

Ma

y-1

2

Ju

n-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Ja

n-1

3

Feb

-13

Ma

r-13

Apr-1

3

440

460

480

500

520

540

560

580

May-1

2

Jun

-12

Jul-1

2

Au

g-1

2

Se

p-1

2

Oct-1

2

Nov-1

2

Dec-1

2

Jan

-13

Feb-1

3

Mar-1

3

Ap

r-13

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Valuations of Major Regional Markets

15.1 1.51

14.7 2.55

10.7 1.42

17.0 3.16

15.1 1.93

Source: Bloomberg

Jakarta Stock Exchange Composite Index, P/B (X)

Straits Times Index, Forward P/E (X)

Hang Seng Index, Forward P/E (X)

Straits Times Index, P/B (X)

Stock Exchange of Thailand, Forward P/E (X) Stock Exchange of Thailand, P/B (X)

Jakarta Stock Exchange Composite Index,

Hang Seng Index, P/B (X)

S&P/ASX 200 Index, Forward P/E (X) S&P/ASX 200 Index, P/B (X)

10

12

14

16

18

De

c-…

Ma

r-10

Jun

-10

Se

p-…

De

c-…

Ma

r-11

Jun-1

1

Sep-…

Dec-…

Ma

r-12

Jun-1

2

Sep-…

Dec-…

Ma

r-13

1.0

1.2

1.4

1.6

1.8

2.0

De

c-0

9

Ma

r-10

Jun-1

0

Sep-1

0

Dec-1

0

Ma

r-11

Jun

-11

Se

p-1

1

De

c-1

1

Ma

r-12

Jun

-12

Se

p-1

2

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c-1

2

Ma

r-13

1.0

1.5

2.0

2.5

3.0

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c-…

Ma

r-10

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r-10

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c-1

0

Ma

r-11

Jun-1

1

Sep-1

1

Dec-1

1

Ma

r-12

Jun-1

2

Sep-1

2

Dec-1

2

Ma

r-13

1.01.21.41.61.82.02.2

De

c-0

9

Ma

r-10

Jun-1

0

Sep-1

0

Dec-1

0

Ma

r-11

Jun

-11

Se

p-1

1

De

c-1

1

Ma

r-12

Jun

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p-1

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c-1

2

Ma

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8

10

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14

16

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c-0

9

Ma

r-10

Jun

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Se

p-1

0

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c-1

0

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r-11

Jun-1

1

Sep-1

1

Dec-1

1

Ma

r-12

Jun-1

2

Sep-1

2

Dec-1

2

Ma

r-13

2.22.42.62.83.03.23.43.6

De

c-0

9

Ma

r-10

Jun-1

0

Sep-1

0

Dec-1

0

Ma

r-11

Jun

-11

Se

p-1

1

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c-1

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p-1

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c-1

2

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10

12

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16

18

20

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c-0

9

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r-10

Jun

-10

Se

p-1

0

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c-1

0

Ma

r-11

Jun-1

1

Sep-1

1

Dec-1

1

Ma

r-12

Jun-1

2

Sep-1

2

Dec-1

2

Ma

r-13

1.4

1.6

1.8

2.0

2.2

De

c-0

9

Ma

r-10

Jun-1

0

Sep-1

0

Dec-1

0

Ma

r-11

Jun

-11

Se

p-1

1

De

c-1

1

Ma

r-12

Jun

-12

Se

p-1

2

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c-1

2

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r-13

8

10

12

14

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ec-0

9

Ma

r-10

Jun

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Se

p-1

0

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c-1

0

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1

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1

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r-12

Jun-1

2

Sep-1

2

Dec-1

2

Ma

r-13

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Regional Market Focus

30 May 2013

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Source: Bloomberg

World Index

JCI 0.47% 5,200.69

HSI -1.61% 22,554.93

KLCI 0.41% 1,783.47

NIKKEI 0.10% 14,326.46

KOSPI 0.75% 2,001.20

SET -1.11% 1,601.61

SHCOMP 0.12% 2,324.02

SENSEX -0.07% 20,147.64

ASX 0.08% 4,974.73

FTSE 100 -1.99% 6,627.17

DOW -0.69% 15,302.80

S&P 500 -0.70% 1,648.36

NASDAQ -0.61% 3,467.52 COLOMBO 0.33% 6,455.81

STI -1.13% 3,367.47

Page 10

Regional Market Focus

30 May 2013

10 of 15

Date Statistic For Survey Prior Date Statistic For Survey Prior

5/30/2013 GDP QoQ (Annualized) 1Q S 2.50% 2.50% 5/31/2013 Credit Card Bad Debts Apr -- 19.9M

5/30/2013 Personal Consumption 1Q S 3.30% 3.20% 5/31/2013 Credit Card Billings Apr -- 3351.2M

5/30/2013 GDP Price Index 1Q S 1.20% 1.20% 5/31/2013 M1 Money Supply (YoY) Apr -- 15.50%

5/30/2013 Core PCE QoQ 1Q S 1.20% 1.20% 5/31/2013 M2 Money Supply (YoY) Apr -- 8.50%

5/30/2013 Initial Jobless Claims 25-May 340K 340K 5/31/2013 Bank Loans & Advances (YoY) Apr -- 19.70%

5/30/2013 Continuing Claims 18-May 2970K 2912K 6/3/2013 Electronics Sector Index May -- 51.2

5/30/2013 Bloomberg Consumer Comfort 26-May -- -29.4 6/3/2013 Purchasing Managers Index May -- 50.3

5/30/2013 Pending Home Sales MoM Apr 1.50% 1.50% 6/5/2013 Automobile COE Open Bid Cat A 5-Jun -- 64839

5/30/2013 Pending Home Sales YoY Apr 12.80% 5.80% 6/5/2013 Automobile COE Open Bid Cat B 5-Jun -- 67304

5/31/2013 Personal Income Apr 0.10% 0.20% 6/5/2013 Automobile COE Open Bid Cat E 5-Jun -- 66701

5/31/2013 Personal Spending Apr 0.00% 0.20% 6/7/2013 Foreign Reserves May -- $261.68B

5/31/2013 PCE Deflator (MoM) Apr -0.20% -0.10% 11-14 JUN Singapore Manpower Survey 3Q -- 17%

5/31/2013 PCE Deflator (YoY) Apr 0.80% 1.00% 6/14/2013 Unemployment Rate (sa) 1Q F -- 1.90%

5/31/2013 PCE Core (MoM) Apr 0.10% 0.00% 6/14/2013 Retail Sales Ex Auto (YoY) Apr -- 1.20%

5/31/2013 PCE Core (YoY) Apr 1.00% 1.10% 6/14/2013 Retail Sales (YoY) Apr -- -7.40%

Date Statistic For Survey Prior Date Statistic For Survey Prior

5/31/2013 Foreign Reserves 23-May -- $174.4B 5/30/2013 Retail Sales - Value (YoY) Apr 14.50% 9.80%

5/31/2013 Forward Contracts 23-May -- $23.7B 5/30/2013 Retail Sales - Volume (YoY) Apr 14.50% 10.20%

5/31/2013 Total Exports YOY% Apr -- 4.20% 5/31/2013 Money Supply M1 - in HK$ (YoY) Apr -- 17.60%

5/31/2013 Total Exports in US$ Million Apr -- $20491M 5/31/2013 Money Supply M2 - in HK$ (YoY) Apr -- 9.20%

5/31/2013 Total Imports YOY% Apr -- -12.50% 5/31/2013 Money Supply M3 - in HK$ (YoY) Apr -- 9.20%

5/31/2013 Total Imports in US$ Million Apr -- $18466M 6/5/2013 Purchasing Managers Index May -- 49.9

5/31/2013 Total Trade Balance Apr -- $2025M 6/7/2013 Foreign Currency Reserves May -- $306.5B

5/31/2013 Current Account Balance (USD) Apr -$950M $1936M 11-14 JUN Hong Kong Manpower Survey 3Q -- 9%

5/31/2013 Overall Balance in US$ Million Apr -- -$65M 6/14/2013 Industrial Production (YoY) 1Q -- 1.30%

5/31/2013 Business Sentiment Index Apr -- 54.4 6/14/2013 Producer Price (YoY) 1Q -- -1.10%

6/3/2013 Consumer Price Index NSA (MoM) May -- 0.16% 14-18 JUN Composite Interest Rate May -- 0.25%

6/3/2013 Consumer Price Index (YoY) May -- 2.42% 6/18/2013 Unemployment Rate SA May -- 3.50%

6/3/2013 Core CPI (YoY) May -- 1.18% 6/20/2013 CPI - Composite Index (YoY) May -- 4.00%

6/6/2013 Consumer Confidence Economic May -- 73.9 6/24/2013 Bal of Paymts - Current A/C 1Q -- $9.62B

6/6/2013 Consumer Confidence May -- 83.7 6/24/2013 Bal of Paymts - Overall 1Q -- $94.34B

Source: BloombergSource: Bloomberg

Source: Bloomberg

Thailand Hong Kong

Source: Bloomberg

US Singapore

Economic Announcement

Page 11

Regional Market Focus

30 May 2013

11 of 15

Date Statistic For Survey Prior Date Statistic For Survey Prior

6/3/2013 HSBC-Markit Manufacturing PMI May -- 51.7 5/31/2013 CPI Moving Average (YoY) May -- 8.80%

6/3/2013 Inflation (YoY) May -- 5.57% 5/31/2013 CPI (YoY) May -- 6.40%

6/3/2013 Inflation NSA (MoM) May -- -0.10% 05-20 JUN Exports YoY% Apr -- -2.80%

6/3/2013 Core Inflation (YoY) May -- 4.12% 05-20 JUN Imports YoY% Apr -- -16.80%

6/3/2013 Exports (YoY) Apr -- -13.00% 6/14/2013 Repurchase Rate 14-Jun -- 7.00%

6/3/2013 Total Imports (YoY) Apr -- -10.00% 6/14/2013 Reverse Repo Rate 14-Jun -- 9.00%

6/3/2013 Total Trade Balance Apr -- $305M 14-28 JUN GDP (YoY) 1Q -- 6.30%

03-05 JUN Danareksa Consumer Confidence May -- 92.4 6/28/2013 CPI Moving Average (YoY) Jun -- --

03-07 JUN Foreign Reserves May -- $107.27B 6/28/2013 CPI (YoY) Jun -- --

03-07 JUN Net Foreign Assets (IDR Tln) May -- 1009.46T 05-19 JUL Exports YoY% May -- --

03-10 JUN Consumer Confidence Index May -- 113.7 05-19 JUL Imports YoY% May -- --

03-10 JUN Money Supply - M1 (YoY) Apr -- 13.40% 7/12/2013 Repurchase Rate 12-Jul -- --

03-10 JUN Money Supply - M2 (YoY) Apr -- 14.00% 7/12/2013 Reverse Repo Rate 12-Jul -- --

10-20 JUN Total Local Auto Sales May -- 102199 7/31/2013 CPI Moving Average (YoY) Jul -- --

10-20 JUN Total Motorcycle Sales May -- 658673 7/31/2013 CPI (YoY) Jul -- --

Date Statistic For Survey Prior

5/30/2013 CBAHIA House Affordability 1Q -- 68.9

5/30/2013 Building Approvals (MoM) Apr 4.00% -5.50%

5/30/2013 Building Approvals (YoY) Apr 22.50% 3.90%

5/30/2013 Private Capital Expenditure 1Q 0.50% -1.20%

5/31/2013 Private Sector Credit MoM% Apr 0.30% 0.20%

5/31/2013 Private Sector Credit YoY% Apr 3.00% 3.20%

6/3/2013 AiG Performance of Mfg Index May -- 36.7

6/3/2013 RPData-Rismark House PX Actual May -- --

6/3/2013 TD Securities Inflation MoM% May -- 0.30%

6/3/2013 TD Securities Inflation YoY% May -- 2.10%

6/3/2013 Retail Sales s.a. (MoM) Apr -- -0.40%

6/3/2013 Company Operating Profit QoQ% 1Q -- -1.00%

6/3/2013 Inventories 1Q -- 0.20%

6/3/2013 RBA Commodity Price Index Au May -- 86.2

6/3/2013 RBA Commodity Index SDR YoY% May -- -6.50%

Source: Bloomberg

Indonesia

Australia

Sri Lanka

Source: Bloomberg Source: Bloomberg

Page 12

PHILLIP RESEARCH STOCK SELECTION SYSTEMS

BUY >15% upside from the current price

HOLD Trade within ± 15% from the current price

SELL >15% downside from the current price

We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors

like (but not limited to) a stock's risk reward profile, market sentiment, recent rate of share price appreciation, presence or

absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final

recommendation

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Page 13

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© 2011 Phillip Securities (Hong Kong) Limited

Phillip Capital – Regional Member Companies

SINGAPORE

Phillip Securities Pte Ltd

Raffles City Tower 250, North Bridge Road #06-00

Singapore 179101 Tel : (65) 6533 6001 Fax : (65) 6535 6631

Website : www.poems.com.sg

MALAYSIA

Phillip Capital Management Sdn Bhd

B-2-6 Megan Avenue II 12 Jln Yap Kwan Seng 50450 Kuala Lumpur Tel : (603) 2166 8099 Fax : (603) 2166 5099

Website : www.poems.com.my

HONG KONG

Phillip Securities (HK) Ltd

11-12/F United Centre 95 Queensway, Hong Kong

Tel : (852) 2277 6600 Fax : (852) 2868 5307

Website : www.poems.com.hk

THAILAND

Phillip Securities (Thailand) Public Co Ltd

15/F, Vorawat Building 849 Silom Road

Bangkok Thailand 10500 Tel : (622) 635 7100 Fax : (622) 635 1616

Website : www.poems.in.th

JAPAN

The Naruse Securities Co Ltd

4-2, Nihonbashi Kabutocho Chuo Ku, Tokyo Japan 103-0026

Tel : (81) 03-3666-2101 Fax : (81) 03-3664-0141

Website : www.naruse-sec.co.jp

UNITED KINGDOM King & Shaxson Ltd

6th Floor, Candlewick House

120 Cannon Street London EC4N 6AS

Tel : (44) 207 426 5950 Fax : (44) 207 626 1757

Website : www.kingandshaxson.com

Page 14

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