REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 10 November 2014

▌What’s on the Table…

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Supermax Corp - Results continue to be weak

9MFY14’s net profit came in below our (67% of FY14 forecast) and consensus’ estimates (64%). Weak associate contribution, forex losses and higher costs incurred for its new and Alor Gajah factories dragged down its 3Q numbers. 9MFY14’s revenue was impacted by the weak 1H sales volume, while net profit was dragged down by weak associate contribution, forex losses and a higher effective tax rate despite lower operating expenses. We cut our FY14-16 EPS by 12-18%. This lowers our target price (12.4x P/E, 30% discount to Hartalega) which we roll over to 2016. We downgrade the stock to Hold from Add due to the underperformance and lack of transparency. Supermax declared an interim dividend of 2sen/share, in line with our forecast. We prefer Kossan.

MISC Bhd - On the crest of a wave in 4Q14

At 73% of our and 71% of consensus’ full-year expectations, MISC's 9M14 core earnings were in line. Petroleum and chemical tanker losses look poised to narrow further in 4Q14 as we head into a seasonally-strong quarter with the benefit of lower bunker prices. FPSO Cendor will also contribute to profits beginning 4Q14. We make minor changes to our EPS estimates and keep our SOP-based target price. We maintain Add, with rerating catalysts that include improving relations with Petronas and brighter petroleum tanker prospects.

Ta Ann - Dialogue with the CEO

About 50 fund managers and analysts attended Ta Ann’s briefing in Kuala Lumpur on Friday, hosted by its CEO Dato’ KH Wong. We are surprised that the group anticipates its log production, which unexpectedly rose 33% yoy in 9M14 due to good weather at its concession sites and an adjustment to its logging programme, to sustain in the future years. We expect lower log production in FY15 as we assume that weather will normalise. We maintain our log production forecasts, and would wait for the results of its new logging programme before changing our estimates. We also make no changes to our EPS, SOP-based target price, and Hold recommendation. We prefer First Resources for exposure to the plantations sector.

TH Heavy Engineering - When the going gets tough

In an interview with The Edge, THHE's CEO Nor Badli Alias, who is also the president of Malaysian Offshore Contractors Association (MOCA), said the domestic fabrication industry has lost large central processing platform (CPP) contracts to foreign companies. However, there is less of an impact on THHE as the company has forayed into the FPSO business. We value the stock at a CY16 P/E of 14.8x, still at a 30% discount to the P/E of the oil & gas big caps. A successful FPSO venture is the potential re-rating catalyst. THHE remains an Add and our top pick among the oil & gas small caps.

Fraser & Neave Holdings - Boosting market share in a competitive industry

KLCC Property Holdings - Suria KLCC leads the way

Economic Update - Sep exports up 2.0%

Economic Update - October foreign reserves rise on trade flows

▌News of the Day…

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• Philip Morris, JT International hike prices for all their cigarettes brands • F&N to launch Phase 1 of Fraser Square in the next six months

• Media Prima unveils mutual separation scheme

• CPO price to hit RM2,500 by 1Q15

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,750

1,800

1,850

1,900

Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14

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FBMKLCI

1824.19 -7.79pts -0.43%Nov Futures Dec Futures

1825 - (-0.57% ) 1826 - (1.00% )———————————————————————————

Gainers Losers Unchanged414 388 319

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Turnover2522.07m shares / RM1954.56m

3m avg volume traded 2603.20m shares

3m avg value traded RM2162.63m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,824 3,286 4,987 1,578 23,550 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,824.19 (0.4) (2.3)

FBM100 12,316.31 (0.5) (2.2)

FBMSC 17,427.26 0.1 11.0

FBMMES 6,778.57 1.9 19.4

Dow Jones 17,573.93 0.1 6.0

NASDAQ 4,632.53 (0.1) 10.9

FSSTI 3,286.39 (0.1) 3.8

FTSE-100 6,567.24 0.2 (2.7)

SENSEX 27,868.63 (0.2) 31.6

Hang Seng 23,550.24 (0.4) 1.0

JCI 4,987.42 (0.9) 16.7

KOSPI 1,939.87 0.2 (3.6)

Nikkei 225 16,880.38 0.5 3.6

PCOMP 7,205.72 (0.4) 22.3

SET 1,578.37 (0.2) 21.5

Shanghai 2,418.17 (0.3) 14.3

Taiwan 8,912.62 0.2 3.5————————————————————————————————

Close % chg Vol. (m)

DNEX 0.380 2.7 121.1

EFFICIENT 0.410 3.8 89.1

SYSTECH BHD 0.225 25.0 88.3

MAS 0.265 0.0 83.6

COMPUGATES 0.060 9.1 60.0

K-ONE 0.520 6.1 55.0

DIGISTAR 0.290 9.4 54.0

IFCA MSC 0.815 7.9 50.4————————————————————————————————

Close % chg

US$/Euro 1.2464 0.07

RM/US$ (Spot) 3.3460 (0.03)

RM/US$ (12-mth NDF) 3.4159 (0.56)

OPR (% ) 3.25 0.00

BLR (% , CIMB Bank) 6.85 0.00

GOLD ( US$/oz) 1,178.48 0.04

WTI crude oil US spot (US$/barrel) 78.65 0.95

CPO spot price (RM/tonne) 2,250.00 0.00

Market Indices

Top Actives

Economic Statistics

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

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Daybreak│Malaysia

November 10, 2014

2

Global Economic News

China's commerce minister said trade ministers at the Asia-Pacific Economic Cooperation (APEC) forum had agreed on a study to eventually create a regional free-trade pact that China has pushed for.

China, APEC's host this year, had been pushing for more concrete action--in particular, approval of a feasibility study--on the proposed Free Trade Area of the Asia Pacific (FTAAP), according to trade officials.

But the US was able to block those initiatives, the officials said, because it worried that could impede progress on completing a separate pact, the Trans-Pacific Partnership (TPP).

The study the ministers did approve pushes off concrete action for at least two years.

A statement didn't give a target for launching the FTAAP, only that ministers agreed to a "goal of establishing the FTAAP as soon as possible." (WSJ)

US employers added 214,000 workers to payrolls in Oct (+256,000 in Sep). Unemployment rate fell to a six-year low of 5.8% in Oct (5.9% in Sep). Labour force participation rate recorded 62.8% in Oct (62.7% in Sep). (Bloomberg)

US consumer credit rose US$15.9bn (US$14.0bn in Aug). (Bloomberg)

US Federal Reserve Chairwoman Janet Yellen said the central bank could trigger some financial turbulence when it starts raising short-term interest rates from near zero, where they have been pinned for six years, but added that the Fed will try to limit such volatility by communicating its interest rate plans clearly. (WSJ)

US Federal Reserve Bank of New York President William Dudley warned there may be "bumps in the road" when the US central bank begins to raise short-term interest rates in what is likely to be 2015.

While a rate increase would be a "very welcome development" signalling US economic health, "this shift in policy will undoubtedly be accompanied by some degree of market turbulence," he said. (WSJ)

US Federal Reserve Bank of Chicago President Charles Evans said the “labour market is firming,” with labour-market slack “definitely diminishing.” He said the drop in joblessness was “good news,” even as “we’ve got some distance to go.” (Bloomberg)

The US Federal Reserve will need to keep interest rates low for "several (maybe many) more years," Minneapolis Fed President Narayana Kocherlakota said, but added that the risk that low rates will destabilize financial markets and spark a crisis is small enough that it should not affect monetary policy choices. (Reuters)

Policy at the US Federal Reserve is keeping pace with developments in the economy and the Fed is not falling behind the curve in planning its first interest rate increase, Cleveland Fed president Loretta Mester said.

Daybreak│Malaysia

November 10, 2014

3

She said she forecast 3% growth "for the next couple of years," and that it would likely be appropriate to raise interest rates sometime next year. (Reuters)

European Central Bank (ECB) board member Christian Noyer said there is a risk that low interest rates in the euro zone are discouraging governments from taking action to repair their economies. "Such risks are very real in the euro area," he added. (WSJ)

The Conference Board Leading Economic Index (LEI) for Japan increased 0.3% mom in Sep to 97.8 (+0.1% mom in Aug). The Coincident Economic Index (CEI) increased 0.4% mom in Sep to 95.3 (-0.2% mom in Aug). (Conference Board)

China’s exports increased 11.6% yoy in Oct (+15.3% yoy in Sep). Imports rose 4.6% yoy (+7.0% yoy in Sep), leaving a trade surplus of US$45.4bn in Oct (US$30.96bn in Sep). (Bloomberg)

China President Xi Jinping signalled China is ready to accept a lower rate of growth, assuring executives that the economy is more resilient than ever and his government can safely guide the country through any slowdown.

“Even a growth rate of about 7% will put China among the top performers in the world in terms of both speed and size,” he said, adding that “risks are indeed there but they’re not that scary.” (Bloomberg)

China's external trade environment may slightly improve in 2015 but still face risks and uncertainties, the Ministry of Commerce said.

"It's difficult for external demand to show a significant rebound," the ministry said, adding that China's economy still faced downward pressure. (Reuters)

Reserve Bank of India (RBI) governor Raghuram Rajan raised doubts about whether additional stimulus is needed to boost global economic growth, saying it is unrealistic to assume that growth can return to pre-crisis rates.

He urged central bankers to resist pressure from politicians to get economic growth back to rates seen below the global financial crisis in 2008.

If finance officials focus too much on boosting growth beyond the capacity of economies to expand, they risk making the same errors that led to the global financial crisis, he said. (WSJ)

The Reserve Bank of Australia (RBA) said the nation’s economy is set to remain subdued and warned Japan’s monetary policy could spur flows that support the local dollar.

“GDP growth is still expected to be below trend until mid-2015,” the RBA said in its quarterly monetary policy statement, and projects the economy will grow at between 2% to 3% in the year through Jun 2015, unchanged from its Aug statement. (Bloomberg)

Daybreak│Malaysia

November 10, 2014

4

South Korean authorities won't sit on their hands while a tumbling yen undercuts the country's export competitiveness, Bank of Korea (BOK) Governor Lee Ju-yeol said, but policymakers could be reluctant to reduce interest rates, and currency intervention offers limited relief.

He said that while there are limitations to South Korea's ability to counter the weakening yen, "we will not stand pat."

A finance ministry official also said that the government will work toward keeping the won from moving out of sync with global exchange rates, an indication it will not target the yen specifically. (Reuters)

Hong Kong’s international reserves recorded US$325.4bn in end-Oct (US$325.8bn in end-Sep). (Bloomberg)

Taiwan’s exports in Oct was up 0.7% yoy (+4.7% yoy in Sep). Imports fell 1.4% yoy in Oct (0.2% yoy in Sep). Oct’s trade surplus increased to US$4.62bn (US$3.5bn surplus in Sep). (WSJ)

Singapore’s foreign exchange reserves fell to US$264.38n in Oct (US$266.14bn in Sep). (Bloomberg)

Bank Indonesia (BI) recorded a slight increase in foreign exchange reserves, climbing to US$112bn at the end of Oct (US$111.16bn in Sep). (Jakarta Post)

Philippine foreign reserves narrowed to US$79.3bn in Oct (US$79.6bn in Sep), largely on gold valuations and foreign exchange obligations. (GMA)

Steps taken this year by the Bangko Sentral ng Pilipinas (BSP) will be enough to damp risk in the domestic property sector, BSP Governor Amando Tetangco said, after land prices exceeded a 1997 high.

Measures to tighten policy and cool the real estate sector have provided banks with “clear enough guidance to help them better appreciate the risks of their lending activities,” he said, citing a new credit-risk management framework, property stress tests for banks and an expanded definition of lenders’ investments. (Bloomberg)

Malaysian Economic News

Total trade in Sep 2014 improved 1.6% to RM119.72bn from RM117.88bn a year ago, while the trade surplus was recorded at RM9.33bn, said the Ministry of International Trade and Industry (MITI). (Bernama)

For further details, kindly refer to our Economic Update

Foreign reserves increased US$0.8bn mom to US$128.1bn as at end-Oct. 10M14 foreign reserves declined US$6.8bn (vs. -US$2.6bn in 10M13). The current reserves level can still comfortably sufficient to finance 8.8 months of retained imports and is 1.2x redefined short-term external debt. (CIMB Research)

For further details, kindly refer to our Economic Update

Daybreak│Malaysia

November 10, 2014

5

Malaysia has called for the reconvening of the World Trade Organisation's Information Technology Agreement (ITA) expansion negotiations and urged for swift conclusion. Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, reiterated Malaysia's commitment in concluding the ITA expansion negotiations, at the APEC ministerial meeting here.

"We hope to see the implementation of the ITA2 agreement in the shortest timeframe possible as it will bring benefits to our economy and promote trade growth," he said. The business community has a lot to gain from this initiative, he said. It would also support the government's efforts at creating jobs, he said.

Malaysia's total trade in information communication technology (ICT) and electrical & electronic products in 2013 amounted to US$107bn while exports totalled US$62bn and imports amounted to US$45bn. The ITA expansion negotiations have 52 participants which account for 97% of global trade in ICT products. (Bernama)

Malaysia has expressed support for China’s initiatives to advance the process of taking concrete actions towards the realisation of the Free Trade Area of the Asia-Pacific (FTAAP) in a comprehensive and systematic manner. As a middle-income economy, Malaysia has enjoyed the benefits brought about by APEC initiatives in addressing the middle-income trap and pushing economies to achieve higher income status, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

The FTAAP would provide an open market to the nations within the Apec region, including small countries like Malaysia, which has benefited from its technical assistance and capacity building programmes, as well as sharing of best practices among economies, he said. (Bernama)

The strong Malaysia-China relations, established 40 years ago, are expected to boost bilateral trade. Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, said this was the first estimate made by the Special Monitoring Committee set up on 4 Nov comprising agencies under the ministry with the aim to coordinate and monitor economic activities with China.

The committee, which aimed to strengthen Malaysia-China trade, was announced by Prime Minister Datuk Seri Najib Razak at the celebration of the 40th anniversary of the Kuala Lumpur-Beijing ties in May. Mustapa said the committee, which would be a one-stop platform to monitor bilateral trade activities, would be chaired by the prime minister and coordinated by the ministry. (Bernama)

Prime Minister Datuk Seri Najib Razak said the Iskandar Regional Development Authority (Irda) has attracted RM24.97bn worth of new investments for the region this year. "Since January, it is encouraging to note that Iskandar Malaysia has successfully attracted new investments worth RM24.97bn.

"In committed investments alone, Iskandar Malaysia has secured RM156.51bn since 2006, of which 51% or RM79.17bn has been realised to date," he said. Najib, who is also finance minister, announced the approval of the 2014-2025 Comprehensive Development Plan for Iskandar Malaysia. (Bernama)

Daybreak│Malaysia

November 10, 2014

6

The government will prioritise on low-cost high impact projects that will be executed in a swift and efficient manner to allow Malaysia achieve its high-income developed nation status by 2020, says Prime Minister Datuk Seri Najib Razak. He posted a link on his blog via www.najibrazak.com and Twitter @NajibRazak that the 11th Malaysia Plan which will be tabled in Parliament in May next year is the last transformation step.

“Besides that, the objective will be achieved via the approach that I have said in Budget 2015, themed 'People Economy'. In the budget, the management of the country's economy is divided into two sections which are capital economy and the people economy,” he said. “With the approach, InsyaAllah (God's willing), Malaysia will achieve a high-income nation status by 2020 and we will continue to be on the right track,” he said. (NST)

Penang tabled a RM992.82m budget for 2015 with an estimated deficit of RM230.31m, the fourth consecutive deficit budget for the state since 2011. The budget for 2015 is only slightly higher than this year’s budget, by about 3.18% from the RM962.19m budget for 2014.

Penang Chief Minister Lim Guan Eng, who tabled the state budget at the Penang State Legislative Assembly today, said the expected revenue to be collected for 2015 is RM656.931m.

This is an increase of RM69.18m or 11.77% in revenue as compared to this year’s revenue estimate of RM587.75m. The increase in revenue is expected to be from land premium from the Bayan Mutiara and Batu Kawan developments, Lim said. (Bernama)

The Penang government has collected RM1.9m in levy imposed on hotel guests in the state from 1 Jun to 30 Sep, this year. State Tourism Development and Culture Committee chairman Danny Law Heng Kiang said RM1.7m in hotel fees was collected in areas under the Penang Island Municipal Council and RM212,257 from hotels in areas under the Seberang Perai Municipal Council. Beginning June 1, hotel guests in the state were imposed a fee of RM3 per room/night for four and five-star hotels while for three-star hotels and below, including budget hotels and lodgings, the fee is RM2 per room/night. (Bernama)

Sabah state assemblymen are in for an increase in salaries and allowance of up to 50% under Budget 2015. Chief Minister Datuk Seri Musa Aman, in announcing the budget on Friday, proposed the increase in salaries and allowances for state administration members (including assemblymen, Speaker and deputy Speakers), as a way to recognise their contributions to the development of the state. “The government agrees to review the schedule of salaries of members of the state administration and allowances for members of the Legislative Assembly which was adopted since 2009,” he said. (Bernama)

International Trade and Industry Minister Datuk Seri Mustapa Mohamed who is here for the Apec Ministerial Meeting met his new Indonesian counterpart, Rahmat Gobel, at the China National Convention Centre on Friday. Malaysian officials said the meeting was held to get to know Rahmat who was appointed Trade Minister by President Joko Widowo last week.

“This is get-to-know session, there is no detailed discussion. “We have agreed that we must have the joint trade and investment committee meeting by the first quarter next year to deal with bilateral trade issues and move forward with bilateral trade and investment,” said an official. (Bernama)

Daybreak│Malaysia

November 10, 2014

7

A proposed state sales tax on seafood products taken out of Sabah is worrying fishermen. Sabah Fisheries and Fishing Boat Owners Association Federation chairman Arsani Arshad said fishermen would likely bear the brunt of such a sales tax. “Factory operators and exporters will pass on any additional costs by pushing down the prices they pay fishermen,” he said, urging the state government to reconsider the tax.

“If the factories are paying fishermen RM3 per kilo for a certain type of fish, they will reduce it to RM2.50 if the sales tax is 50 sen. “So, the low prices they offer will be driven even lower. We would have little choice but to accept it,” Arsani said. (The Star)

The Sustainable Energy Development Authority (SEDA) on Sat hosted its inaugural Open Day for the public to have face-to-face discussions on the feed-in-tariff (FiT) mechanism. SEDA Chairman Datuk Yee Moh Chai said in his opening speech that the purpose of the Open Day was to enable the public to find out more about the FiT for solar Photovoltaic (PV) systems for homeowners.

"I am grieved to learn that we have received complaints from the public on cases of being cheated by PV companies guaranteeing them solar PV quota in exchange for a hefty deposit. "Please note that SEDA has never guaranteed solar PV quota to any applicant or PV company, and yet there are unscrupulous people who are making easy money out of the public with fabricated information," he said.

He said to overcome the issue, SEDA and the Malaysian PV Industry Association (MPIA) have jointly developed a Homeowners' Guide to Investing in a Solar PV System. (Bernama)

Political News

DAP secretary-general Lim Guan Eng again took aim at PAS president Datuk Seri Abdul Hadi Awang over his failure to attend the Pakatan Rakyat leadership council meetings, intensifying a war of words between the two Opposition parties over the issue. Lim said Hadi's absence had created doubts and questioned whether matters agreed by the PAS representative at the meetings were indeed final or still pending a possible veto by the PAS president. (Star)

Corporate News

Ta Ann's high capital expenditure cycle is expected to end soon and that will provide spare cash to reward shareholders with even more generous dividends. Its CEO Dato Wong Kuo Hea revealed that the group would spend an estimated RM60m on oil palm planting activities on the remaining 4,000ha of its land bank next year. After the planting is completed, Ta Ann will be able to bump up its dividend payment further going forward, should there be no new investments. (Financial Daily)

Please refer to out note for details.

Philip Morris and JT International Malaysia are also raising prices of all their cigarette brands by RM1.50 per pack from today to offset the recent increase in excise duty and sustain earnings in anticipation of lower sales volume. Philip Morris announced that the price of a 20-stick pack of Marlboro will now sell at RM13.50 while the L&M, Sampoerna A Red and Sampoerna A Menthol are priced at RM12 per pack effective today. For JTI Malaysia, a 20-stick Mevius and Salem cigarettes will now retail at RM13.50, while its Winston range of cigarettes is priced at RM12 per pack and the Camel packs for filter are priced at RM12.50 per pack and RM14 for non-filter. (Financial Daily)

Daybreak│Malaysia

November 10, 2014

8

Media Prima Bhd plans to reduce the number of employees by offering them a one-off payment. In a statement, Media Prima said the mutual separation scheme (MSS) would be implemented from Nov 7 and be completed on Dec 15. The statement said the exercise was part of a long-term business strategy to maintain the group’s standing and allow it to be more resilient against intense industry competition and an increasingly challenging environment. While details of the number of employees who will be affected by MSS exercise was not divulged, sources said there may be a reduction of between 15% and 20% of the total headcount. (StarBiz)

Fraser & Neave Holdings Bhd (F&N) is targeting to launch its mixed development project estimated at a gross development value (GDV) of RM1.7bn in the next six months. Its director Datuk Ng Jui Sia Said the project called Fraser Square that sits on a 5.15ha site in Section 13, Petaling Jaya, will cover four phases and is targeted to be developed over a period of six years.

"The project will cover two phases for the residential development comprising of three residential blocks, one phase for hotel and retail mall, and another phase for two corporate offices, tower and small office/home office units," he said during a media briefing of the company's full-year results ended Sept 30 2014 held in Kuala Lumpur last Friday. (Malaysian Reserve)

The Malaysian Palm Oil Board (MPOB) has mandated the implementation of biogas capture for all new palm oil mills applications from Jan 1, 2014 and for existing mills applying for throughput expansion in the country. In the case of Sarawak, these mandates can adversely affect the palm oil industry’s growth and development, says the Sarawak Oil Palm Plantation Owners Association (Soppoa). (Borneo Post)

Palm oil will probably climb more than 10%, extending a bull market, as inventories contract in Malaysia and Indian imports expand, according to Dorab Mistry, director of Godrej International Ltd. Futures “will comfortably exceed” RM2,500 (US$749) a metric tonne after March as stockpiles in Malaysia, the world’s biggest producer after Indonesia, decline through June, Mistry said. His earlier target of RM2,300 by December 10 will be exceeded because of the weakness of the Malaysian currency, he said in remarks prepared for a conference in China. (BT)

The Johor state government wants to change the perception among many people that housing development in Iskandar Malaysia is only for the elites. Menteri Besar Datuk Seri Mohamed Khaled Nordin said many people thought the lower-income group could not afford to buy property in the Iskandar region. He said this view was not accurate because the state government was committed to ensure that all were not left out to benefit from the region's rapid development. (Financial Daily)

Johor is set to become the second hub for data-centre parks in the country when one of the world’s top digital-based companies sets up operations in the state. It is learnt that US-based Microsoft Corp will invest between RM5bn and RM6bn to set up its data centre in Sedenak, Kulaijaya. A source told StarBizWeek that Multimedia Development Corp had aggressively courted the company to set up its operations in Cyberjaya, Selangor.

“But Microsoft is more interested to invest in Iskandar Malaysia, citing its close proximity to Singapore as an added advantage for the company,” said the source. The source added that the ongoing progress and development taking place in Iskandar Malaysia was another reason that Microsoft had chosen Johor over Selangor. (Star Biz)

Daybreak│Malaysia

November 10, 2014

9

Sarawak Energy Bhd (SEB), which is seeing rising demand for electricity for its Sarawak Corridor of Renewable Energy (SCORE), will call for tenders for the remaining six packages of work for the 600-MW Balingian coal-fired power plant project in the Mukah division. The plant, which is estimated to cost more than RM3bn overall, will open to international and local companies, among others, the jobs to build a 275kV substation, 275kV overhead transmission lines, the administration and ancillary buildings, operator’s village and an ash pond. So far three packages worth RM1.67bn have been awarded for the 2x300-MW Balingian power plant, leaving jobs estimated to be worth more than RM1.5bn left. According to SEB’s corporate communications manager Ahadiah Zamhari, the last six packages would be tendered out in stages. (StarBiz)

BIMB Investment Management Bhd, a unit of Bank Islam Malaysia Bhd, has announced a net income distribution of RM1.87 per unit for BIMB i Dividend Fund for the financial year ended Oct 31, 2014. The distribution rate is equivalent to a 7.02% distribution yield, outperforming its benchmark of 6% per annum, according to the company. (Financial Daily)

Malaysia’s oleochemical exports are expected to climb 20% to surpass RM11.2bn this year. Malaysian Oleochemical Manufacturers Group president Tan Kean Hua said since 2010, major oleochemical manufacturers have upgraded their fatty acids and fatty alcohol throughput to leverage on economies of scale. “To date, our members are churning out 2.8m tonnes,” he said. (NST)

ACE Market-listed Systech Bhd is looking at double digit growth in revenue and profits for the financial years ending March 31, 2015 (FY15) and FY16 helped by a new revenue stream and the expansion of its existing e-business solutions business. Systech designs develops, customises and implements proprietary software solutions to mostly multilevel marketing (MLM) companies under its subsidiary Syscatech Sdn Bhd. It also develops franchise software systems for retail and franchises' operational and management needs under Mobysys Sdn Bhd. (Financial Daily)

Tan Sri Halim Saad and business associates linked to him via Sumatec Resources will appear as the new substantial shareholders of shipping company PDZ Holdings via Megalink Industries Sdn Bhd, according to sources. Currently, Megalink Industries already owns 14.73% of PDZ Holdings, which it had acquired from state-owned Pelaburan Mara Bhd (PMB) in Sep at 23 sen/share. Sources say a deal has been signed where Megalink Industries will substantially increase its stake in PDZ Holdings to ensure it becomes the controlling shareholder of PDZ Holdings. Megalink Industries is looking to buy PMB’s remaining 14.73% stake. (Star)

Mercedes-Benz Malaysia is confident about the overwhelming success of its first compact sport-utility vehicle (SUV), the all-new GLA, its president and CEO Roland Folger said. "The success of the new GLA is an important element in our strategy for the future. With the compact GLA, we add another attractive SUV variant to the Mercedes-Benz model portfolio in this growing segment," he told reporters at the GLA launch in Kuala Lumpur last Friday. The GLA embodies sporty, dynamic and progressive design character and agile handling, and features a cutting-edge drive systems incorporating comfort and safety. It completes the line-up of Mercedes-Benz's New Generation Compact Car family. (Malaysian Reserve)

Daybreak│Malaysia

November 10, 2014

10

Brazil-based diversified metals and mining corporation Vale SA has announced the operation of its USD1.37bn Teluk Rubiah Maritime Terminal iron-ore distribution center in Perak as the company aims to cut cost on shipping to Asia from Brazil. "With a capacity of handling 30m metric tonnes of iron ore per year, Teluk Rubiah will serve as a atrategic distribution hub to our customers in Asia," the company said in a statement last Friday. Vale CEO Jose Carlos Martins said the distribution center, located in the Straits of Malacca, which is about 10 days far from other ports in the region, will allow company to reduce the iron-ore delivery time to clients in Asia and South East Asia, increasing its competitiveness. (Malaysian Reserve)

Daybreak│Malaysia

November 10, 2014

11

BMSB: Changes in shareholdings

Type of No of Ave Price

7-Nov-14 Date transaction securities Company (RM)

EPF 4/11 Disposed 3,348,600 SIME DARBY

EPF 4/11 Disposed 923,100 DIGI.COM

EPF 4/11 Disposed 841,700 YINSON HOLDINGS

EPF 4/11 Disposed 691,800 WCT HOLDINGS

EPF 4/11 Disposed 580,000 TIME DOTCOM

EPF 4/11 Disposed 294,500 AIRASIA

EPF 4/11 Disposed 271,300 DIALOG GROUP

EPF 3/11-4/11 Disposed 264,700 TELEKOM MALAYSIA

EPF 4/11 Disposed 205,200 HONG LEONG BANK

EPF 4/11 Disposed 174,200 CAHYA MATA SARAWAK

EPF 4/11 Disposed 163,700 DRB-HICOM

EPF 4/11 Disposed 135,800 IJM PLANTATIONS

EPF 4/11 Disposed 51,400 TOP GLOVE

EPF 4/11 Disposed 50,000 IJM CORPORATION

EPF 4/11 Disposed 28,500 GAMUDA

EPF 4/11 Disposed 26,400 PRESTARIANG

EPF 4/11 Disposed 20,000 AEON CO. (M)

EPF 4/11 Disposed 4,700 MBM RESOURCES

Skim Amanah Saham Bumiputera 4/11-5/11 Disposed 2,440,400 TELEKOM MALAYSIA

Skim Amanah Saham Bumiputera 4/11 Disposed 2,419,000 SIME DARBY

Skim Amanah Saham Bumiputera 4/11-5/11 Disposed 1,990,700 SUNWAY REIT

Skim Amanah Saham Bumiputera 5/11 Disposed 223,100 KLCC REIT

Skim Amanah Saham Bumiputera 5/11 Disposed 223,100 KLCC PROPERTY

Kumpulan Wang Persaraan 31/10 Disposed 300,000 PRESTARIANG

Kumpulan Wang Persaraan 31/10 Disposed 45,500 DAYANG ENTERPRISE

Mitsubishi UFJ Financial Group, Inc 4/11 Disposed 614,100 CIMB GROUP

EPF 4/11 Acquired 6,803,100 SAPURAKENCANA PETROLEUM

EPF 4/11 Acquired 2,874,100 AMMB HOLDINGS

EPF 4/11 Acquired 2,010,000 IHH HEALTHCARE

EPF 4/11 Acquired 1,498,000 PUBLIC BANK

EPF 4/11 Acquired 1,443,600 EASTERN & ORIENTAL

EPF 30/10-3/11 Acquired 724,600 MISC

EPF 4/11 Acquired 393,300 AFG

EPF 4/11 Acquired 276,000 MALAYSIA AIRPORTS

EPF 4/11 Acquired 250,000 CAPITAMALLS MALAYSIA TRUST

EPF 4/11 Acquired 230,700 HOCK SENG LEE

EPF 4/11 Acquired 200,000 KUALA LUMPUR KEPONG

EPF 3/11 Acquired 165,000 UEM SUNRISE

EPF 4/11 Acquired 133,400 IGB CORPORATION

EPF 4/11 Acquired 87,300 MAXIS

EPF 4/11 Acquired 54,700 PETRONAS GAS

Skim Amanah Saham Bumiputera 4/11-5/11 Acquired 2,250,000 SAPURAKENCANA PETROLEUM

Skim Amanah Saham Bumiputera 4/11-5/11 Acquired 2,157,800 MAXIS

Dayang Enterprise Holding Berhad 3/11-4/11 Acquired 14,695,200 PERDANA PETROLEUM

GKG Investment Holdings Pte Ltd 6/11 Acquired 100,000 EASTERN & ORIENTAL

Franklin Resources, Inc. 5/11 Acquired 65,800 OLDTOWN

MM Asset Management Holding LLC 4/11 Acquired 90,400 GENTING

T. Rowe Price Associates, Inc 31/10 Acquired 261,200 ASTRO MALAYSIA

Mitsubishi UFJ Financial Group, Inc 3/11 Acquired 4,400 AEON CO. (M)

SUNWAY BERHAD 7/11 Shares Buy Back 600,000 SUNWAY BERHAD 3.18 SOURCES: BMSB

BMSB: ESOS & others

10-Nov-14 No Of New Shares Date of Listing Nature of transaction

SUNWAY BERHAD 125,400 10-Nov-14 Exercise of ESOS

MUHIBBAH ENGINEERING 88,000  10-Nov-14 Exercise of ESOS SOURCES: BMSB

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BMSB: Off-market transactions

7-Nov-14 Vol

K1 45,000,000

BJAUTO 39,100,000

MAYBANK 22,000,000

MEGB 9,846,800

TAKASO 8,525,400

BIMB 3,500,000

XINGHE 3,000,000

SAB 2,200,000

JETSON 2,138,000

PENERGY 2,000,000

AMTEL 1,150,000

MERCURY 650,000 Notes:CN-Crossing deal on board lots

MN-Married deal on board lots MO-Married deal on odd lots

SOURCES: BMSB

BMSB: New Listing

Company Issue price Listing sought Tentative

Public Issue Offer for sale Private placement listing date

CARIMIN PETROLEUM 1.10 14,694,000 5,890,000 46,006,000 Main Market 10-Nov-14

No of shares

SOURCES: BMSB

BMSB: Dividends

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

DAIBOCHI PLASTIC  Interim dividend - single tier 2.50 21-Oct-14 13-Nov-14 17-Nov-14 11-Dec-14

UNISEM Interim dividend - single tier 2.00 30-Oct-14 13-Nov-14 17-Nov-14 3-Dec-14

TASEK CORPORATION Special interim dividend - single tier 50.00 4-Nov-14 17-Nov-14 19-Nov-14 8-Dec-14

PETRONAS GAS 2nd interim dividend - single tier 20.00 4-Nov-14 18-Nov-14 20-Nov-14 8-Dec-14

PETRONAS DAGANGAN Interim dividend - single tier 12.00 4-Nov-14 18-Nov-14 20-Nov-14 5-Dec-14

KLCC REIT 3rd interim dividend - taxable 5.14 7-Nov-14 20-Nov-14 24-Nov-14 17-Dec-14

KLCC PROPERTY  3rd interim dividend - single tier 3.05 7-Nov-14 20-Nov-14 24-Nov-14 17-Dec-14

ASIA FILE CORP Final dividend - single tier 13.50 4-Sep-14 26-Nov-14 28-Nov-14 26-Dec-14

DIALOG GROUP Final dividend - single tier 1.10 27-Oct-14 26-Nov-14 28-Nov-14 18-Dec-14

BONIA CORPORATION Final dividend - single tier 2.50 28-Oct-14 27-Nov-14 1-Dec-14 22-Dec-14

JAYA TIASA 1st & Final dividend - single tier 1.50 30-Oct-14 1-Dec-14 3-Dec-14 17-Dec-14

KAREX Final dividend - single tier 25.00 5-Nov-14 10-Dec-14 12-Dec-14 22-Dec-14

GUINNESS ANCHOR Final dividend - single tier 44.50 5-Nov-14 10-Dec-14 12-Dec-14 31-Dec-14

MEDIA PRIMA 2nd interim dividend - single tier 3.00 6-Nov-14 10-Dec-14 12-Dec-14 30-Dec-14

SUPERMAX  Interim dividend - single tier 4.00 7-Nov-14 26-Dec-14 30-Dec-14 28-Jan-15 SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

10-Nov-14 Ann Date Proposed

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

ASIA FILE CORP 6-Aug-14 Bonus issue 3:5

EASTERN & ORIENTAL 5-Sep-14 Bonus issue 1:10, Free Warrants 1:5

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

BENALEC HOLDINGS  12-Sep-14 > RM200m of 7-year Redeemable Convertible Secured Bonds

TH HEAVY ENGINEERING 24-Sep-14 Private placement of up to 10% of the issued shares of THHE

TH HEAVY ENGINEERING 3-Oct-14 Rights issue with bonus issue, 1 bonus issue : 5 Rights shares

MY E.G. SERVICES 30-Oct-14 Bonus issue 1:1 SOURCES: BMSB

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Corporate Actions

November 2014

SUN MON TUE WED THU FRI SAT

30 1

2 3 4 5 6 7 8

Malaysia Airports 3Q Tasek 3Q, Pet. Gas 3Q, Pet. Dagangan 3Q

IFCA 3Q, MMHE 3Q, Perisai 3Q

PetChem 3Q, Media Prima 3Q, F&N 4Q, Sunway REIT 1Q, IFCA 3Q briefing, BNM Interest Rate

MISC 3Q, Supermax 3Q, KLCC Property 3Q, F&N 4Q briefing, External Trade, External Reserves (month-end data)

9 10 11 12 13 14 15

MPOB Oct stats Astro 3Q & conf. call, Industrial Production

MPI 1Q Maxis 3Q, Tomypak 3Q, MPI 1Q briefing

GDP, BoP Current Account Balance

16 17 18 19 20 21 22

IOI Corp 1Q AirAsia X 3Q, MAS 3Q, Hartalega 2Q, Benalec 1Q

AirAsia 3Q, MSM 3Q, KLK 4Q, Star 3Q, Kossan 3Q, CPI

Mah Sing 3Q, Eco World 12-mths results

Genting 3Q, Genting M’sia 3Q, Thong Guan 3Q, 7-Eleven 3Q, Foreign Reserves (mid-month data)

23 24 25 26 27 28 29

Axiata 3Q, WCT 3Q, Uchi 3Q

UOA Dev 3Q, E&O 2Q, IJM Corp 2Q & briefing, Carlsberg 3Q, WCT 3Q briefing, Umno general assembly

UEM Sunrise 3Q, Prestariang 3Q, FGV 3Q, MCIL 2Q, Star 3Q briefing, Umno general assembly

TM 3Q, Magnum 3Q, Prestariang 3Q briefing, Umno general assembly

Sime Darby 1Q, Karex 1Q, Wellcall 4Q, Money Supply, Umno general assembly,

Umno general assembly

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

December 2014

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6

External Trade, External Reserves (month-end data)

7 8 9 10 11 12 13

Eco World 13-mths results & briefing

Industrial Production

14 15 16 17 18 19 20

SP Setia 4Q

21 22 23 24 25 26 27

Foreign Reserves (mid-month data)

Christmas Day

28 29 30 31

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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course of, and for the purposes of their business, habitually invest money pursuant to Section 3(2)(a)(ii) of the Securities Act 1978.

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CIMB Recommendation Framework

Stock Ratings Definition

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

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

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

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

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