REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 3 April 2013

▌What’s on the Table…

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Packaging - Still a defensive package

The flexible plastic packaging sector continues to outperform this year after a strong 2012. We continue to like the sector’s defensive and resilient business, supported by dividend yields. The sector remains an Overweight. Long-term sector growth prospects in flexible plastic packaging (FPP) will come from the export markets and the non-F&B sector. Even after its recent outperformance, sector dividend yields are attractive at 5-6%. Daibochi Plastics remains our top pick. Securing new major export orders could further catalyse the sector.

Tenaga Nasional - Up, up and away!

Tenaga’s price surged by 5.12% yesterday on 27m shares traded or 4.5x its YTD daily average. This is a positive surprise as elections may impact the stock. Even so, its prospects are bright as tariffs could rise post elections and a stabilisation fund could be created by end-2013. Tenaga remains a Trading Buy with an unchanged target price, still based on 1.37x FY13 P/BV or a 15% discount to the stock's 10-year average. Tenaga is not an outright Outperform due to election risks. Implementation of the stabilisation fund, a tariff hike and winning new generation capacity are catalysts.

Shipping Monitor - Failure of STX Pan Ocean sale?

TradeWinds reported that the proposed disposal of a 35% stake in STX Pan Ocean by STX Corp has failed to attract suitable bids, and that Korea Development Bank may have to eventually buy the stake in order to inject cash into its troubled parent. As a result, after rising from W2,810 to a high of W6,100 on 30 Jan, the share price has corrected 35% to W3,970, and we expect it to correct another 25% to our target price of W2,960 (S$3.30), which incidentally, is close to its early-Dec lows. STX Pan Ocean is our top Underperform in our coverage universe, with Pacific Basin as our top pick. We are Neutral on the shipping sector overall.

▌News of the Day…

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• LTAT clinches RM2.1bn Sg Besi relocation job

• Petronas Gas to issue RM5bn sukuk?

• Pasarana plans two more projects

• Outgoing FGVH chief likely to head Biodiesel Malaysia

• Time dotCom soars on speculation

• TH Heavy gets RM196m contract boost from Murphy

• Pharmaniaga signs MOU to buy Indonesian firms

• BMW hails tariff extension for hybrid cars

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Charts | Statistics

FBMKLCI Index

1,500

1,550

1,600

1,650

1,700

Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13

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FBMKLCI

1685 17.39pts 1.04%APR Futures MAY Futures

1680 - (0.93% ) 1675 - (0.99% )———————————————————————————

Gainers Losers Unchanged523 224 277

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Turnover1007.9m shares / RM1976.899m

3m avg volume traded 1235.99m shares

3m avg value traded RM1599.06m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,685 3,318 4,957 1,551 22,368 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,685.00 1.0 (0.2)

FBM100 11,355.47 1.0 0.5

FBMSC 12,263.29 1.1 6.8

FBMMES 4,018.59 0.5 (4.6)

Dow Jones 14,662.01 0.6 11.9

NASDAQ 3,254.86 0.5 7.8

FSSTI 3,317.59 0.3 4.8

FTSE-100 6,490.66 1.2 10.1

Hang Seng 22,367.82 0.3 (1.3)

JCI 4,957.25 0.4 14.8

KOSPI 1,986.15 (0.5) (0.5)

Nikkei 225 12,003.43 (1.1) 15.5

PCOMP 6,748.43 (1.3) 16.1

SET 1,550.54 0.1 11.4

Shanghai 2,227.74 (0.3) (1.8)

Taiwan 7,913.18 0.2 2.8

Close % chg Vol. (m)

COMPUGATES 0.080 0.0 63.8FRONTKEN 0.085 6.3 28.3

TENAGA NASIONAL 7.590 5.1 27.0

TIME ENGINEERING 0.295 7.3 16.2

YTL CORP 1.670 1.8 16.1

AMBANK HLDG 6.590 0.6 15.9

LUSTER INDUSTRIES 0.100 0.0 15.9

MALAYAN BANKING 9.410 1.2 14.5

Close % chg

US$/Euro 1.2823 0.02RM/US$ (Spot) 3.0873 (0.04)

RM/US$ (12-mth NDF) 3.1472 (0.09)

OPR (% ) 2.99 (0.33)

BLR (% , CIMB Bank) 6.60 0.00

GOLD ( US$/oz) 1,577 0.05

WTI crude oil US spot (US$/barrel) 97.19 0.12

CPO spot price (RM/tonne) 2,335 1.52

Economic Statistics

Market Indices

Top Actives

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Terence Wong CFA T (60) 3 20849689 E terence.wong@cimb.com

Daybreak Malaysia

April 3, 2013

2

Global Economic News…

Global sales of semiconductors rose 1.4% to US$23.25bn in Feb from US$22.93bn a year ago, according to the US-based Semiconductor Industry Association (SIA). Sales were, however, 3.8% lower from Jan's US$24.17bn, reflecting seasonal trends. (StarBiz)

US domestic vehicle sales registered at a 12.1m annual rate in Mar, unchanged from Feb and matching consensus. (Bloomberg)

US factory orders rose 3.0% mom in Feb (a revised -1.0% in Jan), exceeding consensus of 2.9%. (Bloomberg)

Eurozone unemployment increased to 12% in Feb, and the Jan figure was revised up to the same level from 11.9% estimated earlier. That’s the highest since the data series started in 1995 and matches economists’ estimates. (Bloomberg)

The eurozone Markit manufacturing PMI slid to 46.8 in Mar from 47.9 in Feb. (Bloomberg)

Cyprus announced a partial relaxation of currency controls:

It raised the ceiling on transactions which do not require Central Bank approval to €25,000 from €5,000. It also permits the use of cheques worth up to €9,000 per month.

Other restrictions introduced last week, including a €300-per-day cash withdrawal limit and a €1,000 limit on the amount travellers can take overseas, remain in place. (Reuters)

China will expand an urban regeneration plan for ageing industrial cities as part of efforts to restructure the economy and promote more sustainable growth, the National Development and Reform Commission (NDRC) said yesterday. The plan, to run from 2013 to 2020, covers 95 prefecture-level cities and 25 municipalities and capital cities that were once the core of China's heavy industrial base. A blueprint issued in Nov 2011 covered 62 cities. (Financial Daily)

Taiwan and China on Monday agreed to further ease investment caps in each other's financial institutions, officials said. Individual Chinese banks will be permitted to acquire up to 10% of a bank listed in Taiwan, up from 5% previously.

Total Chinese shareholdings may go up to 15% after a 5% ownership cap for investors under the Qualified Domestic Institutional Investors scheme is included.

Taiwanese banks will be allowed to expand their business into rural areas of the Chinese mainland, without specifying when the new regulations would go into effect. (BT)

Japan's government approved a long-sought plan to open up its power industry after the 2011 Fukushima nuclear disaster renewed calls for more competition in the sector. It is also preparing to create the world's first futures

Daybreak Malaysia

April 3, 2013

3

trading contract for liquefied natural gas in a bid to stabilise the commodity's price as demand soars, an industry ministry official said. (AFP)

The Reserve Bank of Australia kept interest rates on hold at 3.0%, saying global downside risks appeared to have eased but domestic pressures were lingering. (AFP)

Taiwan's Premier Jiang Yi-hua approved a controversial 1.42% increase in the island's monthly minimum wage because of an improving economy. (AFP)

Indonesia is considering having state-owned Pertamina sell a new fuel as part of plans to limit energy subsidies to private-owned vehicles, Finance Minister Agus Martowardojo said. A revised fuel policy may be announced in two weeks, Energy Minister Jero Wacik said. (Bloomberg)

The Philippine central bank plans to release more rules as early as this month aimed at liberalising access to foreign exchange from banks and allow for more outflows to dampen the peso’s appreciation. (Reuters)

Vietnam is estimated to incur a state budget deficit of VND50.6tr in 1Q13, meeting 31.2% of the full-year estimate, report by the Ministry of Finance showed. The state budget revenue declined by 2.6% yoy to VND167.71tr, fulfilling 20.6% of the year plan.

The state spending in 1Q13 was estimated at VND218.385tr, up 6% on year, meeting 22.3% of the full year estimate.

In 2013, the government aims to curb the state budget deficit at less than 4.8% of GDP (-4.8% in 2012).

Vietnam's exports up 19.7% yoy to US$29.68bn in 1Q13, the Ministry of Industry and Trade has reported. The increase was mainly attributed to the export of mobile phones and accessories by Samsung Vietnam, Deputy Minister Tran Quoc Khanh said. Imports rose 17% yoy to US$29.2bn, resulting in a trade surplus of US$482m in 1Q13. (Bloomberg)

Malaysian Economic News…

Cheaper oil and gas prices and a 20% royalty for producing states, will take a toll on Petronas and the country's development, PM Datuk Seri Najib Razak said Tuesday. The oil and gas sector required a huge amount of capital expenditure, and if royalties increased to 20%, it would hamper Petronas' ability to invest and reinvest. If the proposed reduction in the price of petrol, diesel and gas as touted by the opposition were to be implemented, the annual subsidy for fuel may rise to RM30bn from the current RM22bn annually, he added. (Bernama)

1Malaysia Development Bhd (1MDB) has awarded a RM2.1bn contract to develop eight sites in the relocation of Pangkalan Udara Kuala Lumpur which will be transformed into Bandar Malaysia. Lembaga Tabung Angkatan Tentera (LTAT) will undertake the development through its wholly-owned subsidiary Perbadanan Perwira Harta Malaysia (PPHM), 1MDB said in a statement. (Bernama)

Daybreak Malaysia

April 3, 2013

4

The government has agreed to the Petronas board's decision to give a RM1,000 one-off payment to 40,000 of its staff, said PM Datuk Seri Najib Tun Razak. The RM1,000 is a gesture of gratitude to all staff of the Petronas Group of Companies, he said. (Bernama)

Malaysia's exports to Egypt are expected to increase by 10% this year on strong demand for palm oil in the republic, said Malaysia's Ambassador to Egypt, Datuk Dr Mohd Fakhrudin Abdul Mukti. The exports of Malaysian palm oil were expected to improve following the Egyptian government's recently-announced subsidies for palm oil in tandem with the high demand, he said. In 2012, Malaysia's exports to Egypt amounted to RM4bn while Egypt's imports to Malaysia during that period totalled about RM300m. (Bernama)

Political News…

PM Datuk Seri Najib Razak is widely expected to call the general election today as he marked his full four years in office, seeking a fresh mandate to pursue the national transformation agenda. Sources said Barisan Nasional's manifesto - a blueprint setting its five-year agenda for the nation - and allocation of seats among component parties have been finalised. The candidates' list is also almost ready. If Parliament is dissolved today, nominations are expected to be held by next week with polling as early as Apr 20. BN-controlled states are expected to dissolve their respective state assemblies either on the same day or the day after. (NST)

All eyes will be on the cabinet meeting today at Putrajaya after weeks of intense speculation on when the Dewan Rakyat will be dissolved for the 13th general election. Datuk Seri Najib Tun Razak and his colleagues are scheduled to have their cabinet group photography session, speculated to be the last before the polls with reports that the ministers have been told to dress in dark suits, which observers say is customary before polls. It is learnt that the prime minister has his usual scheduled appointment to see the Yang di-Pertuan Agong in the morning and could use the occasion to ask the king for consent to dissolve the Dewan Rakyat. (Star)

Datuk Seri Najib Razak celebrates his fourth year as the sixth prime minister of Malaysia today. And whether or not parliament is dissolved, he intends to celebrate the anniversary with the people by cycling around Putrajaya in the 1Malaysia Patriotic Cycling event. Approximately 10,000 people are expected to join the prime minister and the members of his cabinet and cycle either the 12km cheer route or the 20km fit route. (Bernama)

The MCA gave itself top marks in a self-praising performance report card charting its contributions to the Chinese community and claimed credit for Putrajaya’s implementation of policies targeted towards recapturing Chinese support. “These are based on accurate figures, not spins like what the DAP does,” MCA President Datuk Seri Dr Chua Soi Lek said. The report card will be used as part of the party’s campaign in Election 2013 and comes in an A2 size format listing MCA’s contributions on the left while rivals the DAP and PKR’s are on the right. Virtually all of the space given to the opposition in the report card says “no contribution”. (Malaysian Insider)

Daybreak Malaysia

April 3, 2013

5

Corporate News…

1MDB has awarded a RM2.1bn contract to develop eight sites in the relocation of Pangkalan Udara Kuala Lumpur which will be transformed into Bandar Malaysia. LTAT will undertake the development through its wholly-owned subsidiary Perbadanan Perwira Harta Malaysia (PPHM). The relocation involves various units of the Royal Malaysian Air Force (RMAF), Royal Artillery Regiment (31 RAD) and the air wing of the Royal Malaysian Police (RMP) from the old Sungai Besi airport.

PPHM is expected to provide opportunities for local contractors to participate in the development of the relocation sites. “As an agency under the Ministry of Defence, LTAT is in a strong position to ensure that the relocation process will not jeopardize national security.” 1MDB Real Estate Sdn Bhd CEO Dato’ Azmar Talib said.

The new facilities are scheduled for completion by September 2016. Construction work on Bandar Malaysia, a strategic development project led by 1MDB as the Master Developer, can only start after the new facilities are developed and relocation completed. (Bernama)

Prasarana will announce two more mixed property development deals estimated to be worth RM1.1bn located along its LRT extension project in Awan Besar (2.02ha) and Puchong (2.83ha) by mid 2013. There are 11 more parcels of land earmarked for property development along its future LRT stations. Group MD Datuk Shahril Mokhtar said the mixed property development in Awan Besar and Puchong have indicative GDVs of RM600m and RM500m respectively. (StarBiz)

Outgoing Felda Global Ventures Holdings (FGVH) group president and chief executive officer Datuk Sabri Ahmad has been tipped to head Biodiesel Malaysia Sdn Bhd, a newly established consortium endorsed by the Government and the Malaysian Palm Oil Board (MPOB). Sabri would likely assume the post of executive chairman in the consortium once his term at FGVH expired in July, said an industry source. Biodiesel Malaysia is believed to be MPOB's shell company set up in 2000, the source shared, adding that the intended paid-up capital for the consortium was still being decided on. At present, there are two major stakeholders in the consortium FGVH (32%) and Sime Darby (23%) while the remaining stakes are now being offered to other plantation companies, biodiesel producers and petroleum companies. (BT)

Petronas Gas Bhd (PetGas) is planning Malaysia's biggest sukuk offering this year at a time when top-rated corporate bond yields are at a nine month high. PetGas has invited pitches from banks to arrange as much as RM5bn of Islamic debt, three people with knowledge of the matter said. The yield of Malaysia's three year AAA-rated notes climbed three basis points in 2013 to 3.56% the highest since June 29. PetGas plans to use the funds for two regasification plants, part of a US$444bn spending programme started by Prime Minister Datuk Seri Najib Razak that aims to propel Malaysia to developed nation status by 2020. (Star Biz)

Time dotCom (TdC) saw a sudden rise in activity, with its share price rising 11 sen, despite CEO Afzal Abdul Rahim saying there was nothing unusual going on. The shares closed at RM4.14 yesterday on speculation that a deal could be in the works whereby more of Afzal's private assets could be injected into TdC. The company's proposed dividend-in-specie distribution of DiGi shares to shareholders is expected to be completed within this quarter. (Star Biz)

Daybreak Malaysia

April 3, 2013

6

There was no let up in the bullish trend of the FBM KLCI as it gained 17.39 points or more than 1% on the back of speculation that prime minister Datuk Seri Najib Razak will dissolve parliament today. The ample liquidity is expected to lend support to share prices should there be a knee-jerk reaction which may pull down the market after the dissolution of parliament. Hence, any correction in the local bourse is unlikely to be a sharp one. The flush of local liquidity would provide more legs to the market rally, all things being equal. (Financial Daily)

Foreign buying of index-linked stocks especially banks and Tenaga Nasional on Tuesday evening pushed the FBM KLCI to close at a 2-1/2 month high and outperforming the key regional markets. At 5pm, the KLCI was up 17.39 points or 1.04% to 1,685.00, highest since Jan 15. Turnover was 1bn shares valued at RM1.9bn. The broader market displayed the broader positive sentiment with two stocks advancing for every one decliner, with 522 gainers, 224 losers and 278 stocks unchanged. (StarBiz)

Tenaga Nasional Bhd soared yesterday hitting RM7.62 its highest in more than half a decade spurred by buying interest in blue-chips. The power giant which contributes significant weight to the FTSE Bursa Malaysia KL Composite Index opened the day at RM7.21 but finished short of its intraday high by gaining 37 sen or 5.12% to RM7.59. The barometer index gained 17.39 points to close at 1,685. (Star Biz)

Bursa Malaysia Bhd has entered into an agreement with Public Bank Bhd, signifying the bank as the first adopter of its eRights service. eRights, launched on March 28, 2013, is the latest e-service introduced by Bursa Malaysia to create a more facilitative trading environment. With eRights, Public Bank would become the first financial institution to provide investors the convenience of electronic subscription and payment of rights issues via the bank’s ATM and Internet banking facilities, Bursa Malaysia said in a statement yesterday. (Starbiz)

Inokom Corp Sdn Bhd, a subsidiary of Sime Darby Motors, is targeting to produce 20,000 vehicles this year, compared to 14,000 a year ago. Its MD Mohd Rizal Jailan said in an interview that the 20,000 units would comprise some 6,000 BMW cars, 8,000 units of Elantra, I-10, Santa Fe and the AD3 5-tonner truck, and 6,000 units of Mazda, Land Rover Defender and commercial vans. (Starbiz)

Cheaper oil & gas prices and a 20% royalty for producing states will take a toll on Petronas and the country's development, said PM Datuk Seri Najib Razak at a town hall meeting with Petronas staff.

He said the oil & gas sector required a huge amount of capex and if the opposition increased royalties to 20%, it would hamper Petronas' ability to invest and reinvest.

Najib also said if the proposed reduction in the price of petrol, diesel and gas as touted by the opposition were to be implemented, the annual subsidy for fuel may rise to RM30bn from the current RM22bn annually.

Separately, the government has agreed to the Petronas board's decision to give a RM1,000 one-off payment to 40,000 of its staff, said Najib. (Bernama)

Daybreak Malaysia

April 3, 2013

7

Decisions on tender awards for upstream and downstream activities in the oil and gas sector are left in Petronas' hands, said Prime Minister Datuk Seri Najib Razak. The government does not want to have a say in the decision-making process. "A few months ago, I decided that all the tenders be decided by the board's wisdom ... I don't want to make the decision," Najib said. He added that having the government on board as a partner is an advantage as Canada subsequently approved the purchase of its shale natural gas producer Progress Energy after earlier blocking the US$5.5bn (RM16.5bn) deal.

Najib, who is also Finance Minister, said the RM22bn subsidy bill for petrol and gas has led to the low price of RON 95 petrol at the pump as well as gas, leading Malaysia as one of the top nine cheapest in the world in terms of gas and petrol prices. The figures may swell to RM30bn if subsidies are to be extended and this will affect development plans and result in a disaster. (BT)

Petronas may increase its offer for MISC, after an offer at RM5.30 a share was flatly rejected last month. Industry sources say that Petronas and EPF would likely come to an agreement soon, as both are government-linked agencies. Sources close to EPF had indicated that they may settle with Petronas at above RM6 per share for MISC. (Malaysian Reserve)

PAAB's procurement board is understood to be ready to recommended one bidder of three shortlisted candidates for the 1,130 MLD Langat 2 water treatment plant, sources say. Sources say that that Gamuda and a consortium made up of MMC Corp, Salcon and AZRB are among the three that have been shortlisted for the RM1.2bn job. “It’s now at the stage where there is one preferred candidate from three bidders, down from five shortlisted bidders from 13 companies which tendered earlier,” the source said. Other bidders include IJM Corp, UEM Construction and Asia Baru Construction Sdn Bhd. PAAB’s board will make a decision later this week. (KiniBiz)

REDtone International which eyes RM80m in data revenue this year, has teamed up with Telekom Malaysia (TM) in a wholesale ethernet deal. In a joint statement yesterday, the companies said the agreement would provide REDtone instant access to all TM’s Metro-E infrastructure nationwide. “The collaboration is set to widen REDtone’s coverage for its data and broadband services and strengthen its grasp in the corporate and small medium industries/small medium enterprises segment where its data solutions are targeted at,” it said.

REDtone group CEO Lau Bik Soon said the collaboration with TM would help elevate the company’s data and broadband business to a higher level of growth. “As the largest infrastructure provider in the country, TM’s Metro-E landings are extensive with many situated in commercial areas where Redtone’s core data customers are. “This gives us instant access to a new pool of potential corporate customers and will help us to achieve our goal to achieve 200% increase in our data revenue for the current financial year,” he said. (StarBiz)

U Mobile aims to secure up to 20% mobile subscriber market share within five years as it continues to aggressively expand its network and launch more innovative and quality products and services.

CEO Jaffa Sany Ariffin said currently the company holds about 10% of the subscriber market or four million users. "We aim to increase our market share by 15 to 20 per cent in five years."

Daybreak Malaysia

April 3, 2013

8

Jaffa said the growth would be driven by the introduction of new products tailored to meet the customers needs.

Yesterday, the company inked a deal with SAS Malaysia, a business analytic software and services company, to integrate the SAS' Visual Analytics solution into U Mobile's operations in the country. Under the pact, SAS will provide U Mobile's executives an immediate access to real-time consumer behaviour data for significantly more informed business decisions. (BT)

TH Heavy Engineering has secured a RM196m contract from Murphy Sarawak Oil to build the topsides for the platforms offshore Bintulu. "Under the contract, the company is to undertake the EPCC of the Permas Production-A (PR-PA) topsides' located at Block SK311, about 95km offshore Bintulu, Sarawak. It is a one-off contract and the scheduled completion date for the contract shall be approximately 16 months," it said. (Star Biz)

Sunway aims to replicate its two projects, Sunway Montana and Rymba Hills, if it finds land which is suitable for the development. MD of property Ho Hong Sang said it is scouting for land in the Klang Valley with similar features to the two projects. Sunway Montana, located in Desa Melawati, is an exclusive hillside enclave. The hallmark features include an exclusive 5.6ha private forest with skywalk. Rymba Hills features a 2.6ha private forest and well-planned park-inspired environment, nature trails, meditation pavilions and exercise par courses. (BT)

Brahim's Holdings, the only licenced manufacturer of refined sugar in Sabah and Sarawak, has secured in-flight catering contracts from five leading airlines that will boost its revenue and net profit this year. Its 70% subsidiary, Brahim's Airline Catering Sdn Bhd (BAC) secured the contracts from Air France, Philippines Airlines, Nas Air, Xiamen Airline and Turkish Airlines. This brings the total number of foreign carriers being catered by Brahim's to 36. Brahim's biggest customer is Malaysian Airlines (MAS), which also owns 30% of BAC. The company also services AirAsia and AirAsia X and 30 over foreign airlines. (BT)

Indah Water Konsortium (IWK) announced the appointment of Mohamed Haniffa Abdul Hamid as COO effective April 1. Haniffa’s main tasks include assisting the CEO to strengthen the national sewerage’s operations, especially on the technical aspects. Haniffa, a professional engineer, joined IWK in 1994. (BT)

Catcha Media has appointed Australian Lucas Robert Elliott, 36, as its non-executive director. Elliott joined Patrick Y-Kin Grove and Kensuke Tsurumaru in 1999 in the formation of Catcha.com Ltd. In 2004, he became of the founding members of Catcha Group Pte Ltd. He has been the director of iProperty Group Ltd since February 2010 and iCar Asia Ltd since April 2012. (StarBiz)

Boustead Holdings Bhd’s unit, Pharmaniaga Bhd, has signed a US$28m (RM86m) memorandum of understanding with Sutjipto Tjengudororo and Hendrijanto Surjosuseno for the acquisition of PT Errita Pharma, a generic pharmaceutical manufacturer. (BT)

Faced with dirty, dangerous and difficult toil, construction workers who used to earn RM30 a day are now commanding double to triple that price with skilled

Daybreak Malaysia

April 3, 2013

9

workers drawing RM95 daily and upwards, say Malaysian property developers as they warn of an impending economic crisis due to labour shortage. The government’s RM1.38tr economic transformation projects are fuelling stiff competition among builders to net skilled construction workers from a limited pool and will drive up costs due to labour shortage, said the Master Builders Association of Malaysia (MBAM).

Datuk Kenny Tan, chairman of KEN Holdings said, “My contractors have been complaining that they have not enough workers and that we may fall behind schedule. Also, before, very seldom contractors will say they can’t do a project because they don’t have enough workers. Now, even after tendering, that can happen.” To avoid any delays in the delivery of a project, he said his contractors had no choice but to fork out extra money for workers. (Malaysian Insider)

Malaysia Smelting Corp Bhd (MSC) reiterates that its mining and smelting investment in Indonesia will be adversely affected if it fails to get a contract extension there. The Indonesian government is still evaluating the contract extension of MSC's 75%t-owned PT Koba Tin. Although the contract expired in end-Mar, PT Koba is still allowed to undertake production operations up to a maximum of three months from Monday, pending the evaluation. MSC said PT Koba had prior to this submitted the application for a 10-year contract extension to the Indonesian government. (BT)

Ho Wah Genting (HWGB) plans to raise RM11.28m from the proposed placement of up to 53.72m new shares to independent third party investors. The company said the RM11.28m expected to be raised would be based on an indicative issue price of 21 sen per placement share, which was 8.7% below the five-day weighted average market price of 23 sen. Of the RM11.28m, it said RM2.45m would be used to repay bank borrowings, RM4m to finance further tin mining exploration and RM4.53m as working capital while the remaining RM300,000 would be expenses related to the proposed private placement. (Starbiz)

Bintulu Port has raised the paid-up capital of wholly owned subsidiary, Samalaju Industrial Port (SIP), by another RM99.99m with the issue of an equal amount of shares. Thus, the total paid-up capital of SIP now is RM200m. (Malaysian Reserve)

Selangor Dredging (SDB) has acquired a 100% equity interest in SDB Property Management Sdn Bhd. The acquisition made via the company’s unit, SDB Properties Sdn Bhd, comprises two ordinary shares of RM1 each fully paid-up for a total cash consideration of RM2. (BT)

Indah Water Konsortium (IWK) has announced the appointment of Mohamed Haniffa Abdul Hamid as chief operating officer effective April 1. Haniffa’s main tasks include assisting the chief executive officer to strengthen the national sewerage’s operations, especially on the technical aspects. Haniffa, a professional engineer, joined IWK in 1994. (BT)

BMW Group Malaysia has welcomed the efforts by the Malaysian Automotive Association (MAA) to encourage the Government to extend the Feed-In-Tariff (FIT) extension for hybrid cars from two to five years. In a statement, BMW CEO Dr Gerhard Pils said that in 2012 alone, the FIT and hybrid car incentives increased the purchase and use of hybrid cars by 84% over the year before. “The extension would help further strengthen the growth in the

Daybreak Malaysia

April 3, 2013

10

hybrid car segment, and ultimately lower carbon emissions in the country. (Starbiz)

A pipe making company and its two wholly-owned subsidiaries are suing 14 of its former employees, including directors and officers, for breach of contract and duty including “enticing away” its business partners and customers. The writ of summons and statement of claim, dated Mar 21, were filed at the Shah Alam court. (Starbiz)

Bolton Bhd has changed its name to Symphony Life Bhd. The company said the name change was the first phase of its transformation exercise, expected to be complete by year-end. In a statement, executive chairman Tan Sri Azman Yahya said as part of its transformation exercise, the company would enhance its performance and renew its commitment to all its stakeholders.

Meanwhile, the company said the first phase of Mayang Land, an integrated mixed development, is on track for its scheduled launch in July this year. The entire project is expected to be complete in six years time, and generate a gross development value of more than RM1.8bn. Subject to planning and development approvals, the development is expected to be christened as “Star Residences”. It will consist of five blocks of low-rise boutique offices and three blocks of high-end serviced residential towers. (StarBiz)

Daybreak Malaysia

April 3, 2013

11

BMSB: Changes in shareholdings

Type of No of Ave Price

2-Apr-13 Date transaction securities Company (RM)

EPF 28/3 Disposed 8,570,000 CIMB GROUP

EPF 28/3 Disposed 6,224,100 MALAYAN BANKING

EPF 28/3 Disposed 5,474,600 AIRASIA BERHAD

EPF 28/3 Disposed 4,526,000 AMMB HOLDINGS

EPF 28/3 Disposed 3,372,400 SIME DARBY

EPF 28/3 Disposed 2,057,200 DIGI.COM

EPF 27/3-28/3 Disposed 1,605,700 AFFIN HOLDINGS

EPF 28/3 Disposed 1,475,000 IOI CORPORATION

EPF 27/3 Disposed 1,412,100 AXIATA GROUP

EPF 28/3 Disposed 950,200 BURSA MALAYSIA

EPF 28/3 Disposed 915,000 IJM CORPORATION

EPF 28/3 Disposed 823,900 PUBLIC BANK

EPF 27/3-28/3 Disposed 724,600 ALLIANCE FINANCIAL GROUP

EPF 28/3 Disposed 652,300 WCT

EPF 28/3 Disposed 525,800 MALAYSIA AIRPORTS

EPF 28/3 Disposed 404,400 KULIM

EPF 28/3 Disposed 338,400 KLCC PROPERTY

EPF 28/3 Disposed 327,100 PETRONAS GAS

EPF 28/3 Disposed 265,400 DRB-HICOM

EPF 28/3 Disposed 120,000 PAVILION REIT

EPF 28/3 Disposed 177,100 HONG LEONG BANK

EPF 28/3 Disposed 94,700 KPJ HEALTHCARE

EPF 28/3 Disposed 34,000 STAR PUBLICATIONS

EPF 28/3 Disposed 29,900 LAFARGE MALAYAN CEMENT 

EPF 28/3 Disposed 25,800 GENTING PLANTATIONS

Skim Amanah Saham Bumiputera 26/3-27/3 Disposed 2,900,000 AXIATA GROUP

Lembaga Tabung Haji 28/3 Disposed 112,000 IJM CORPORATION

Lembaga Tabung Haji 28/3 Disposed 1,000 AL-`AQAR HEALTHCARE REIT

Mitsubishi UFJ Financial Group, Inc 27/3 Disposed 7,600 BURSA MALAYSIA

Mitsubishi UFJ Financial Group, Inc 27/3 Disposed 3,800 POS MALAYSIA

EPF 28/3 Acquired 3,020,800 YTL CORPORATION

EPF 28/3 Acquired 2,035,700 MAXIS

EPF 28/3 Acquired 1,301,800 DIALOG GROUP

EPF 28/3 Acquired 833,500 IHH HEALTHCARE

EPF 28/3 Acquired 569,200 SAPURAKENCANA PETROLEUM

EPF 28/3 Acquired 448,000 IJM LAND

EPF 28/3 Acquired 291,000 TELEKOM MALAYSIA

EPF 28/3 Acquired 250,000 EVERSENDAI

EPF 28/3 Acquired 217,200 BIMB HOLDINGS

EPF 28/3 Acquired 200,000 POS MALAYSIA

EPF 28/3 Acquired 150,000 MBM RESOURCES

EPF 28/3 Acquired 100,000 UEM LAND

EPF 28/3 Acquired 65,300 KUALA LUMPUR KEPONG

EPF 28/3 Acquired 62,000 ORIENTAL HOLDINGS

EPF 28/3 Acquired 5,500 UNITED MALACCA

EPF 28/3 Acquired 3,000 TAN CHONG MOTOR

EPF 28/3 Acquired 1,300 IJM PLANTATIONS

Kumpulan Wang Persaraan 25/3-26/3 Acquired 102,400 PETRONAS GAS

Lembaga Tabung Haji 28/3-29/3 Acquired 1,500,000 MALAYSIA MARINE AND HEAVY ENG

Lembaga Tabung Haji 28/3-29/3 Acquired 29,300 COASTAL CONTRACTS

Mitsubishi UFJ Financial Group, Inc 26/3-27/3 Acquired 208,200 ALLIANCE FINANCIAL GROUP

Mitsubishi UFJ Financial Group, Inc 27/3 Acquired 67,100 ORIENTAL HOLDINGS

Mitsubishi UFJ Financial Group, Inc 27/3 Acquired 47,400 SP SETIA

Mitsubishi UFJ Financial Group, Inc 27/3 Acquired 38,000 UNITED MALACCA

Mitsubishi UFJ Financial Group, Inc 27/3 Acquired 23,600 UNITED PLANTATIONS

Mitsubishi UFJ Financial Group, Inc 27/3 Acquired 20,200 BAT

YTL POWER  2/4 Shares Buy Back 1,000,000 YTL POWER  1.47

CAHYA MATA SARAWAK 2/4 Shares Buy Back 80,000 CAHYA MATA SARAWAK 3.06 SOURCES: BMSB

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BMSB: ESOS & others

3-Apr-13 No Of New Shares Date of Listing Nature of transaction

IJM LAND 1,934,011 03-Apr-13 Exercise of Warrants-13

WCT 11,060,199 04-Apr-13 Exercise of Warrants-13

Alam Maritim 866,250 04-Apr-13 Exercise of ESOS

IOI Corporation 562,000 04-Apr-13 Exercise of ESOS

MEDIA PRIMA 67,527 04-Apr-13 Exercise of ESOS SOURCES: BMSB

BMSB: Off-market transactions

2-Apr-13 Vol

PJI 12,000,000

NEXTNAT 7,800,000

HUBLINE 5,310,000

HIBISCS-WA 2,631,000

BJLAND 1,046,100

DIALOG-WA 600,000

FRB 600,000

UEMLAND 524,000

TEBRAU 500,000

LBS 500,000 Notes:CN-Crossing deal on board lots

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

SOURCES: BMSB

BMSB: Dividends

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

WCT Interim - single tier 3.25 25-Feb-13 4-Apr-13 8-Apr-13 22-Apr-13

CIMB Group 2nd interim - single tier 18.38 26-Mar-13 5-Apr-13 9-Apr-13 8-May-13

Sunway Interim - single tier 6.00 26-Mar-13 8-Apr-13 10-Apr-13 30-Apr-13

Berjaya Sports Toto 3rd interim - single tier 8.00 1-Apr-13 12-Apr-13 16-Apr-13 23-Apr-13

Malaysia Airports Final - single tier 7.63 29-Mar-13 10-Apr-13 12-Apr-13 13-May-13

Sime Darby Interim - single tier 7.00 27-Feb-13 23-Apr-13 25-Apr-13 10-May-13

My E.G. Services First interim - single tier 0.50 25-Feb-13 23-Apr-13 25-Apr-13 21-May-13

Carlsberg Final & Special - single tier 58.00 26-Feb-13 2-May-13 6-May-13 20-May-13

Tasek Corporation Special - less income tax of 25% 60.00 18-Feb-13 13-May-13 15-May-13 31-May-13

Tasek Corporation Final - less income tax of 25% 30.00 18-Feb-13 13-May-13 15-May-13 31-May-13

Bintulu Port Final dividend - single tier 7.50 27-Feb-13 15-May-13 17-May-13 31-May-13

Nestle Final dividend - single tier 155.00 21-Feb-13 21-May-13 23-May-13 13-Jun-13

Malaysia Marine & Heavy Eng. Final dividend - single tier 10.00 21-Feb-13 14-Jun-13 18-Jun-13 2-Jul-13

SOURCES: BMSB

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Corporate Actions

April 2013

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6

External Reserves, External Trade

7 8 9 10 11 12 13

IPI, Manufacturing Sales

14 15 16 17 18 19 20

CPI Tenaga 2Q

21 22 23 24 25 26 27

External Reserves DiGi 1Q

28 29 30

Money Supply, PPI

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

May 2013

SUN MON TUE WED THU FRI SAT

1 2 3 4

Labour Day

5 6 7 8 9 10 11

Hartalega 4Q External Reserves, External Trade

IPI, Manufacturing Sales, MPC

12 13 14 15 16 17 18

GDP, BOP

19 20 21 22 23 24 25

CPI, External Reserves

Wesak Day

26 27 28 29 30 31

Money Supply, PPI

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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15

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Score Range 90 – 100 80 – 89 70 – 79 Below 70 or No Survey Result

Description Excellent Very Good Good N/A

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17

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Recommendation Framework #1 *

Stock Sector

OUTPERFORM: The stock's total return is expected to exceed a relevant benchmark's total return

by 5% or more over the next 12 months.

OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to

outperform the relevant primary market index over the next 12 months.

NEUTRAL: The stock's total return is expected to be within +/-5% of a relevant benchmark's total

return.

NEUTRAL: The industry, as defined by the analyst's coverage universe, is expected to perform in

line with the relevant primary market index over the next 12 months.

UNDERPERFORM: The stock's total return is expected to be below a relevant benchmark's total

return by 5% or more over the next 12 months.

UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to

underperform the relevant primary market index over the next 12 months.

TRADING BUY: The stock's total return is expected to exceed a relevant benchmark's total return

by 5% or more over the next 3 months.

TRADING BUY: The industry, as defined by the analyst's coverage universe, is expected to

outperform the relevant primary market index over the next 3 months.

TRADING SELL: The stock's total return is expected to be below a relevant benchmark's total

return by 5% or more over the next 3 months.

TRADING SELL: The industry, as defined by the analyst's coverage universe, is expected to

underperform the relevant primary market index over the next 3 months.

* This framework only applies to stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand, Jakarta Stock Exchange, Australian Securities Exchange, Korea Exchange, Taiwan

Stock Exchange and National Stock Exchange of India/Bombay Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily outside the prescribed ranges due to extreme market

volatility or other justifiable company or industry-specific reasons.

CIMB Research Pte Ltd (Co. Reg. No. 198701620M)

Recommendation Framework #2 **

Stock Sector

OUTPERFORM: Expected positive total returns of 10% or more over the next 12 months. OVERWEIGHT: The industry, as defined by the analyst's coverage universe, has a high number

of stocks that are expected to have total returns of +10% or better over the next 12 months.

NEUTRAL: Expected total returns of between -10% and +10% over the next 12 months. NEUTRAL: The industry, as defined by the analyst's coverage universe, has either (i) an equal

number of stocks that are expected to have total returns of +10% (or better) or -10% (or worse), or

(ii) stocks that are predominantly expected to have total returns that will range from +10% to -10%;

both over the next 12 months.

UNDERPERFORM: Expected negative total returns of 10% or more over the next 12 months. UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, has a high number

of stocks that are expected to have total returns of -10% or worse over the next 12 months.

TRADING BUY: Expected positive total returns of 10% or more over the next 3 months. TRADING BUY: The industry, as defined by the analyst's coverage universe, has a high number

of stocks that are expected to have total returns of +10% or better over the next 3 months.

TRADING SELL: Expected negative total returns of 10% or more over the next 3 months. TRADING SELL: The industry, as defined by the analyst's coverage universe, has a high number

of stocks that are expected to have total returns of -10% or worse over the next 3 months.

** This framework only applies to stocks listed on the Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily

outside the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.

Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2011.

AAV – not available, ADVANC - Excellent, AMATA - Very Good, AOT - Excellent, AP - Very Good, BANPU - Excellent , BAY - Excellent , BBL - Excellent, BCH - Good, BEC - Very Good, BECL - Very Good, BGH - not available, BH - Very Good, BIGC - Very Good, BTS - Very Good, CCET - Good, CK - Very Good, CPALL - Very Good, CPF - Very Good, CPN - Excellent, DELTA - Very Good, DTAC - Very Good, GLOBAL - not available, GLOW - Very Good, GRAMMY – Excellent, HANA - Very Good, HEMRAJ - Excellent, HMPRO - Very Good, INTUCH – Very Good, ITD - Good, IVL - Very Good, JAS – Very Good, KAMART – not available, KBANK - Excellent, KK – Excellent, KTB - Excellent, LH - Very Good, LPN - Excellent, MAJOR - Very Good, MCOT - Excellent, MINT - Very Good, PS - Excellent, PSL - Excellent, PTT - Excellent, PTTGC - not available, PTTEP - Excellent, QH - Excellent, RATCH - Excellent, ROBINS - Excellent, RS – Excellent, SC – Excellent, SCB - Excellent, SCC - Excellent, SCCC - Very Good, SIRI - Very Good, SPALI - Very Good, STA - Very Good, STEC - Very Good, TCAP - Very Good, THAI - Very Good, THCOM – Very Good, TICON – Good, TISCO - Excellent, TMB - Excellent, TOP - Excellent, TRUE - Very Good, TUF - Very Good, WORK – Good.