MCI (P) 129/11/2012 Ref No: SGMN2013_0006 1 of 16

Phillip Securities Research Pte Ltd

Singapore

Morning Note

9 January 2013

Fundamental Call SGX – Update (Ken Ang) Recommendation: Neutral Previous close: S$7.08 Fair value: S$6.85

Securities Daily Average Value decreased 9.0% q-q to S$1.214 billion based on SGX figures. 2Q13’s SDAV is the third lowest in the last three years.

Derivatives Daily Average Volume strong with a 16.9% q-q increase to 0.359 million contracts. Derivatives volume expected to increase further, but at a more gradual pace.

Maintain Neutral call, with a revised Target price of S$6.85 based on an unchanged Price Earnings ratio of 24.0X. Source: Phillip Securities Research Pte Ltd

Morning Commentary - STI: -0.40% to 3205.5 - MSCI SE Asia: -0.15% to 878.5 - Hang Seng: -0.94% to 23111.2 - MSCI APxJ: -0.58% to 472.7 - Euro Stoxx 50: -0.15% to 2691.5 - S&P500: -0.32% to 1457.2 MARKET OUTLOOK: By Ng Weiwen, Macro Analyst Markets are wading -cautiously and insipidly- into earnings season. The S&P 500 and STI have retraced (i.e. pulled back) from their 5-yr high and 16-mth high respectively as markets consolidate their recent gains in the absence of a new catalyst, consistent with our expectations laid out in the morning note. We reckon markets are pausing -not climbing higher- as investors: (i) wait to see how the US Congress navigate the impending US$110bn spending cuts and negotiations to raise the debt ceiling - both of which are delayed till late Feb, (ii) seek greater clarification as to whether there will be a premature exit by the Fed from LSAPs (currently to the tune of US$85bn/mth) Amid the uncertainties, it is definitely not all gloom and doom. In fact, markets might actually surprise on the upside during earnings season, in view of (i) a pick up in the global macroeconomy and (ii) low hurdle (pessimistic tone) in analysts' estimate of earning growth (in part due to companies' guidance) Note, clients can position for such a possible retracement (our base case) or short-term boost (possible, esp if companies report better-than-expected earnings growth) with stock indices CFDs available from Phillip CFD. For the S&P 500, it needs to convincingly clear key resistance at 1470 level to charge higher, otherwise key support at its 50dma. SECTOR/STRATEGY REPORTS: - Singapore Sector Reports: Gaming, 4 Jan / Banks, 2 Jan / REIT, 31 Dec / Telecommunications, 12 Dec / Commodities Sector 3 Dec - Country Strategy: S’pore, 26 Dec / China & HK, 19 Dec / Thai, 19 Dec - Global Macro, Asset Strategy: 4 Jan / US, 21 Dec / ASEAN, 5 Dec Source: Phillip Securities Research Pte Ltd

Morning Note 9 January 2013

2 of 16

Macro Data In US, consumer credit edged up 0.6% seas-adj m-m to US$16.1 bn on account of marginal increase in revolving credit (+0.1%) and a larger increase in non-revolving credit (+0.8%) in November. The rise in non-revolving credit was largely due to a boost from the Federal government as part of healthcare legislation reform. In Euro zone, retail sales rose by 0.1% m-m in Nov, trailing the market expected 0.3% m-m gain, after a 1.2% m-nm drop in Oct. On y-y basis, retail sales dropped 2.6% y-y, after the 3.6% y-y drop in Oct. The region’s unemployment rate remained elevated at 11.8% in Nov, slightly higher than the 11.7% reading in Oct, indicating a weak job market and business environment. In Germany, Export fell by a significant 3.4% m-m seasonally adjusted, exceeding the market expected 0.5% m-m drop. Import fell by 3.7% m-m, while the market was predicting a 0.5% m-m gain, reflecting weak domestic demand. The nation’s factory order fell by 1.8% m-m seasonally adjusted in Nov, worse than the market expected 1.4% m-m drop, after a 3.9% m-m gain in Oct. Over the year, factory orders fell by 1.0% in Nov, after the 2.4% y-y drop in Oct. A more timely gauge for business outlook, the euro-zone economic confidence, rose to 87.0 in Dec, beating market expected 86.3 and prior 85.7, indicating a possible turnaround amid the prolong debt turmoil. Source: Phillip Securities Research Pte Ltd

Source: Bloomberg

STI - Index Members

1.9%

1.6%

1.4%

1.1%

1.0%

0.8%

0.7%

0.7%

0.6%

0.5%

0.5%

0.2%

0.1%

0.0%

0.0%

-0.2%

-0.3%

-0.3%

-0.4%

-0.4%

-0.6%

-0.7%

-0.8%

-1.0%

-1.2%

-1.4%

-1.5%

-1.6%

-2.1% -3.1%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Com

fortDelG

ro

Jardine Stra.

Capitam

alls Asia

Starhub

HK Land

ST E

ng.

SPH

Jardine C&

C

Sem

bcorp Ind.

SIA

Capitaland

Keppel C

orp. Ltd

OC

BC

F&N

Capitam

all Trust

Sem

bcorp Mar.

SG

X

Genting S

P

Noble G

roup

SIA

Eng.

Jardine Mat.

IHH

Golden A

gri-R.

DBS

Singtel

GLP

CD

L

UO

B

Olam

Wilm

ar

Morning Note 9 January 2013

3 of 16

Company Results

Revenue Net Profit S/N Company Name Q/HY/FY Currency,

Units Current Previous Change (%) Current Previous Change

(%)

1 TEE International Limited 2Q S$’000 43,972 38,745 13.5 2473 3683 (32.9)

Source: SGX Masnet

Company Highlights MYP Ltd. (the “Company”) announced that the Company has entered into a conditional sale and purchase agreement dated 8 January 2013 (the “Agreement”) with Singapore Shipping Corporation Limited (the “Purchaser”), pursuant to which the Company has agreed to sell to the Purchaser: (a) 10,000,000 ordinary shares of SSC Shipping Agencies Pte Ltd (“SSPL”), representing 100% of its issued share capital (the “SSPL Shares”); (b) 400,000 ordinary shares of Island Line Pte Ltd (“ISPL”), representing 100% of its issued share capital (the “ISPL Shares”); (c) 50,000 ordinary shares of Hai Poh Terminals Pte Ltd (“HPTL”), representing 50% of its issued share capital (“HPTL Shares”); and (d) 245,000 ordinary shares of Nanyang Maritime (S’pore) Pte Ltd (“NYML”), representing 49% of its issued share capital (“NYML Shares”), for the aggregate cash consideration of S$15.0 million. (Closing price: S$ 0.260, +1.961%) Asia Power Corporation Limited announced that Asia Power (Hainan) Investment Co., Ltd (亚洲电力（海南）投资有限公司) ("AP Hainan"), a wholly-owned subsidiary of the Company, has on 4 January 2013 (the "Signing Date") agreed to acquire an equity interest of 12.5% (the "Equity Interest") in the registered capital of Hainan Changying Culture Development Holding Co., Ltd (海南长影文化发展股份有限公司) ("Changying Culture") from Hainan Zhen Yu Investment Co., Ltd (海南振宇投资有限公司) (the "Vendor") pursuant to a conditional sale and purchase agreement (the SPA") entered into between AP Hainan and the Vendor (the "Proposed Acquisition"). (Closing price: S$ 0.088, -%) Source: SGX Masnet, The Business Times

Morning Note 9 January 2013

4 of 16

80.32 +0.07% 294.61 -0.21%

111.16 -0.01% 1.868 -0.03%

1,659.25 +0.09% 13,328.85 -0.41%

554.95 -0.60% Straits Times Index 3,205.52 -0.40%

23,111.19 -0.94% 10,508.06 -0.86%

Source: Bloomberg

Gold (US$/Oz) DJI

MSCI Asia x-Japan

Hang Seng Index Nikkei 225 Index

Dollar Index ThomReuters/JefferiesCRB

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

1.201.401.601.802.002.202.40

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

2,500

2,700

2,900

3,100

3,300

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

11,000

12,000

13,000

14,000

Jan-12

Feb-12

Mar-

12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

17,00018,00019,00020,00021,00022,00023,000

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

7,500

8,500

9,500

10,500

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

1,500

1,600

1,700

1,800

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

78

80

82

84

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

260

280

300

320

340

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

90

100

110

120

130

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

420440460480500520540

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Dec-12

Morning Note 9 January 2013

5 of 16

Morning Note 9 January 2013

6 of 16

Phillip Securities Research - Singapore Stocks Coverage

Company Analyst Rating Target Price (S$)

Current Price (S$)

Difference to Target Price (%)

GOLDEN AGRI-RESOURCES LTD Nicholas Ong Accumulate 0.680 0.655 3.8%WILMAR INTERNATIONAL LTD Nicholas Ong Neutral 3.70 3.49 6.0%

GENTING SINGAPORE PLC Magdalene Choong Neutral 1.15 1.46 -21.0%COMBINE WILL INTERNATIONAL H Chan Wai Chee Buy 0.93 0.80 16.3%

DBS GROUP HOLDINGS LTD Ken Ang Neutral 15.10 14.65 3.1%OVERSEA-CHINESE BANKING CORP Ken Ang Reduce 8.30 9.69 -14.3%UNITED OVERSEAS BANK LTD Ken Ang Accumulate 20.95 19.33 8.4%SINGAPORE EXCHANGE LTD Ken Ang Neutral 6.85 7.08 -3.2%

CAPITALAND LTD Bryan Go Accumulate 3.97 3.87 2.6%CAPITAMALLS ASIA LTD Bryan Go Accumulate 1.93 2.11 -8.5%HO BEE INVESTMENT LTD Bryan Go Neutral 1.44 1.95 -26.0%KEPPEL LAND LTD Bryan Go Neutral 3.28 4.18 -21.5%OVERSEAS UNION ENTERPRISE Bryan Go Neutral 2.83 2.77 2.2%SC GLOBAL DEVELOPMENTS LTD Bryan Go Neutral 1.80 1.82 -0.8%GLOBAL PREMIUM HOTELS LTD Chan Wai Chee Buy 0.305 0.25 22.0%STAMFORD LAND CORP LTD Chan Wai Chee Buy 0.76 0.58 32.2%SINGXPRESS LAND LTD Chan Wai Chee Restricted 0.017

CDL HOSPITALITY TRUSTS Travis Seah Neutral 2.060 1.97 4.8%PARKWAYLIFE REAL ESTATE Travis Seah Accumulate 2.33 2.24 4.0%SABANA SHARIAH COMP IND REIT Travis Seah Neutral 1.15 1.16 -0.4%

SATS LTD Derrick Heng Accumulate 2.94 2.90 1.4%SIA ENGINEERING CO LTD Derrick Heng Buy 5.00 4.43 12.9%SINGAPORE TECH ENGINEERING Derrick Heng Accumulate 3.96 3.85 2.9%KEPPEL CORP LTD Nicholas Ong Accumulate 12.38 11.15 11.0%SEMBCORP INDUSTRIES LTD Change of Analyst 5.35SEMBCORP MARINE LTD Change of Analyst 4.70HU AN CABLE HOLDINGS LTD Chan Wai Chee Buy 0.164 0.137 19.7%SUNPOWER GROUP LTD Chan Wai Chee Buy 0.250 0.21 19.0%

SINGAPORE AIRLINES LTD Derrick Heng Buy 13.40 10.98 22.0%TIGER AIRWAYS HOLDINGS LTD Derrick Heng Sell 0.45 0.73 -38.4%NEPTUNE ORIENT LINES LTD Derrick Heng Accumulate 1.36 1.21 12.4%SMRT CORP LTD Derrick Heng Sell 1.35 1.70 -20.4%COMFORTDELGRO CORP LTD Derrick Heng Buy 1.80 1.83 -1.6%HENGYANG PETROCHEMICAL LOGIS Chan Wai Chee Buy 0.27 0.210 28.6%

SINGAPORE TELECOM LTD Ken Ang Neutral 3.06 3.28 -6.7%STARHUB LTD Ken Ang Neutral 3.20 3.79 -15.6%M1 LTD Ken Ang Neutral 2.41 2.69 -10.4%

Phillip Securities Research - US Stocks Coverage

Company Analyst Rating Target Price (US$)

Current Price (US$)

Difference to Target Price (%)

LAS VEGAS SANDS CORP Magdalene Choong Neutral 40.00 52.11 -23.2%WYNN RESORTS LTD Magdalene Choong Neutral - 121.09 -MGM RESORTS INTERNATIONAL Magdalene Choong Accumulate 12.90 12.95 -0.4%Source: Phillip Securities Research Pte Ltd

Commodities & Supply Chain Managers

Consumer Goods

Banking & Finance

Property (Developers)

Property (REITS)

Industrials (Capital Goods)

Industrials (Transportation)

Technology & Communications

Morning Note 9 January 2013

7 of 16

FTSE ST Breakdown (3M % Change)

STI 4.6%

6.5%

5.1%

6.1%

12.5%3.2%

6.8%

-1.4%

4.1%

11.1%

0.0%

2.9%

2.6%

ST China

ST Real Estate

ST Re Invest Trust

ST Oil & Gas

ST Basic Materials

ST Industrials

ST Consumer Goods

ST Consumer Service

ST Telecommunicate

ST Utilites

ST Financials

ST Technology12.4%

ST Healthcare

Source: Bloomberg

Last % Chg0.080 40.40.109 14.70.052 13.00.360 10.80.235 9.3

Last % Chg0.220 -15.40.240 -9.40.025 -7.40.127 -7.30.200 -7.0

Source: Bloomberg Source: SGX

5,7361,731

171338451

Turnover (S$'mn)UPDOWN

JIUTIAN CHEMICAL GROUP LTDMEDI-FLEX LTD

Top Gainers (%)FTSE ST Market Cap. Breakdown (3M % Change)

Turnover ('mn shares)

Top Losers (%)

SINARMAS LAND LTD

UNCHANGED

ARMARDA GROUP LTD

OCEANUS GROUP LTD

LIZHONG WHEEL GROUP LTDKIAN HO BEARINGS LTD

LEY CHOON GROUP HOLDINGS LTD

BUND CENTER INVESTMENT LTDSource: Bloomberg

SAPPHIRE CORP LTD

9.9%

6.0% 17.3%

ST All Share

ST Fledgling

ST Small Cap

ST Mid Cap

STI4.6%

5.1%

Morning Note 9 January 2013

8 of 16

Source: Bloomberg

World Index

JCI 0.12% 4,397.55

HSI -0.94% 23,111.19

KLCI -0.31% 1,688.91

NIKKEI -0.86% 10,508.06

KOSPI -0.66% 1,997.94

SET 0.14% 1,417.33

SHCOMP -0.41% 2,276.07 SENSEX 0.26% 19,742.52

ASX -0.57% 4,690.25

FTSE 100 -0.18% 6,053.63

DOW -0.41% 13,328.85

S&P 500 -0.32% 1,457.15

NASDAQ -0.23% 3,091.81 COLOMBO 0.10% 5,751.93

STI -0.40% 3,205.52

ETF % Change Change LastABF SINGAPORE BOND INDX FUND -0.76 -0.01 1.18CIMB FTSE ASEAN 40 -0.90 -0.10 10.98DB X-TRACKERS CSI300 ETF -0.36 -0.03 8.23DB X-TRACKERS FTSE VIETNAM +3.05 +0.73 24.68DB X-TRACKERS MSCI INDONE -0.98 -0.15 15.18DB X-TRACKERS S&P 500 INV DA +0.23 +0.08 34.17DB X-TRACKERS S&P CNX NIFTY +1.40 +1.52 110.20ISHARES MSCI INDIA INDEX ETF +1.56 +0.10 6.50LYXOR ETF CHINA ENTERPRISE -3.49 -0.55 15.19LYXOR ETF COMMODITIES CRB-CD -0.72 -0.02 2.77LYXOR ETF MSCI INDIA -0.98 -0.14 14.20LYXOR ETF MSCI KOREA-USD B -1.46 -0.08 5.40LYXOR ETF MSCI TAIWAN -0.61 -0.01 0.98NIKKO AM SINGAPORE STI ETF -0.92 -0.03 3.24SPDR GOLD TRUST -0.23 -0.37 159.97SPDR STRAITS TIMES INDEX ETF -0.31 -0.01 3.26UNITED SSE 50 CHINA ETF -2.17 -0.04 1.80

ETF Perform ance

Source: Bloomberg

Morning Note 9 January 2013

9 of 16

EX Date Company Type Net Amount Currency Frequency Record Date Payout Date1/11/2013 NETEASE INC-ADR Special Cash 0.9800 USD None 1/15/2013 1/22/20131/15/2013 GLOBAL PREMIUM HOTELS LTD Interim 0.0020 SGD Irreg 1/17/2013 1/28/20131/17/2013 HISAKA HOLDINGS LTD Special Cash 0.0025 SGD Annual 1/21/2013 1/31/20131/22/2013 WBL CORP LTD Final 0.0500 SGD Semi-Anl 1/24/2013 2/18/20131/22/2013 ASIA PACIFIC BREWERIES LTD Final 0.8500 SGD Semi-Anl 1/24/2013 2/6/20131/25/2013 THAI VILLAGE HOLDINGS LTD Regular Cash 0.0080 SGD Annual 1/29/2013 2/13/20131/28/2013 OLD CHANG KEE LTD Regular Cash 0.0500 SGD Annual 1/30/2013 2/20/20131/29/2013 MERMAID MARITIME PCL Regular Cash 0.0274 THB Annual 1/31/2013 2/22/20132/1/2013 FRASER AND NEAVE LTD Final 0.1200 SGD Semi-Anl 2/5/2013 2/21/20132/6/2013 PNE INDUSTRIES LTD Regular Cash 0.0040 SGD Annual 2/8/2013 2/25/2013

Corporate Action : Dividend

Source: Bloomberg

EX Date Company Type Subscription Price Currency Term Record Date1/14/2013 MOYA ASIA LIMITED Rights Issue 0.0400 SGD 2 per 5 1/16/2013Source: Bloomberg

Corporate Action: Rights

Morning Note 9 January 2013

10 of 16

Morning Note 9 January 2013

11 of 16

Name Expected Report DateSingapore Press Holdings Ltd January 14, 2013Singapore Exchange Ltd January 16, 2013CapitaMall Trust January 18, 2013Keppel Corp Ltd January 25, 2013SIA Engineering Co Ltd January 31, 2013Singapore Airlines Ltd February 1, 2013StarHub Ltd February 1, 2013CapitaMalls Asia Ltd February 8, 2013DBS Group Holdings Ltd February 8, 2013ComfortDelGro Corp Ltd February 13, 2013Singapore Telecommunications Ltd February 13, 2013CapitaLand Ltd February 14, 2013Fraser and Neave Ltd February 14, 2013Global Logistic Properties Ltd February 14, 2013Olam International Ltd February 14, 2013Oversea-Chinese Banking Corp Ltd February 20, 2013Genting Singapore PLC February 22, 2013SembCorp Marine Ltd February 22, 2013Singapore Technologies Engineering Ltd February 22, 2013United Overseas Bank Ltd February 22, 2013Wilmar International Ltd February 22, 2013Golden Agri-Resources Ltd February 27, 2013SembCorp Industries Ltd February 27, 2013City Developments Ltd February 28, 2013IHH Healthcare Bhd February 28, 2013Jardine Cycle & Carriage Ltd February 28, 2013Noble Group Ltd February 28, 2013Hongkong Land Holdings Ltd March 1, 2013Jardine Matheson Holdings Ltd March 1, 2013Jardine Strategic Holdings Ltd March 1, 2013Singapore Press Holdings Ltd April 12, 2013Singapore Exchange Ltd April 17, 2013CapitaMall Trust April 18, 2013Keppel Corp Ltd April 19, 2013CapitaMalls Asia Ltd April 25, 2013Jardine Cycle & Carriage Ltd April 25, 2013DBS Group Holdings Ltd April 26, 2013CapitaLand Ltd April 30, 2013StarHub Ltd May 3, 2013SIA Engineering Co Ltd May 7, 2013SembCorp Marine Ltd May 9, 2013Singapore Airlines Ltd May 9, 2013Singapore Technologies Engineering Ltd May 9, 2013United Overseas Bank Ltd May 9, 2013City Developments Ltd May 10, 2013Fraser and Neave Ltd May 10, 2013Genting Singapore PLC May 10, 2013Golden Agri-Resources Ltd May 10, 2013Oversea-Chinese Banking Corp Ltd May 10, 2013SembCorp Industries Ltd May 10, 2013Singapore Telecommunications Ltd May 10, 2013Wilmar International Ltd May 10, 2013ComfortDelGro Corp Ltd May 14, 2013Noble Group Ltd May 14, 2013Olam International Ltd May 15, 2013Source: Bloomberg

Earning Announcement – Singapore

Calendar

Morning Note 9 January 2013

12 of 16

Date Statistic For Survey Prior Date Statistic For Survey Prior1/9/2013 Consumer Credit Nov $12.750B $14.158B 1/9/2013 Automobile COE Open Bid Cat A 2-Jan -- 818891/9/2013 MBA Mortgage Applications 4-Jan -- -10.40% 1/9/2013 Automobile COE Open Bid Cat B 2-Jan -- 935011/10/2013 Initial Jobless Claims 5-Jan 365K 372K 1/9/2013 Automobile COE Open Bid Cat E 2-Jan -- 959901/10/2013 Continuing Claims 29-Dec 3228K 3245K 1/15/2013 Retail Sales (MoM) sa Nov -- 0.60%1/10/2013 Bloomberg Jan. United States 1/15/2013 Retail Sales (YoY) Nov -- -1.00%1/10/2013 Bloomberg Consumer Comfort 6-Jan -- -31.8 1/15/2013 Retail Sales Ex Auto (YoY) Nov -- 1.30%1/10/2013 Wholesale Inventories Nov 0.30% 0.60% 1/17/2013 Non-oil Domestic Exp SA (MoM) Dec -- -0.30%1/10/2013 JOLTs Job Openings Nov 3683 3675 1/17/2013 Electronic Exports (YoY) Dec -- -16.50%1/11/2013 Import Price Index (MoM) Dec 0.10% -0.90% 1/17/2013 Non-oil Domestic Exports (YoY) Dec -- -2.50%1/11/2013 Import Price Index (YoY) Dec -1.50% -1.60% 1/23/2013 CPI (MOM) - NSA Dec -- 0.10%1/11/2013 Trade Balance Nov -$41.3B -$42.2B 1/23/2013 CPI (YoY) Dec -- 3.60%1/12/2013 Monthly Budget Statement Dec -$17.5B -- 1/23/2013 Automobile COE Open Bid Cat A 16-Jan -- --1/15/2013 Empire Manufacturing Jan 0 -8.1 1/23/2013 Automobile COE Open Bid Cat B 16-Jan -- --1/15/2013 Advance Retail Sales Dec 0.20% 0.30% 1/23/2013 Automobile COE Open Bid Cat E 16-Jan -- --1/15/2013 Retail Sales Less Autos Dec 0.30% 0.00% 1/25/2013 Industrial Production MoM SA Dec -- 1.90%

Source: BloombergSource: Bloomberg

US SingaporeEconomic Announcement

Important Information This publication is prepared by Phillip Securities Research Pte Ltd., 250 North Bridge Road, #06-00, Raffles City Tower, Singapore 179101 (Registration Number: 198803136N), which is regulated by the Monetary Authority of Singapore (“Phillip Securities Research”). By receiving or reading this publication, you agree to be bound by the terms and limitations set out below. This publication has been provided to you for personal use only and shall not be reproduced, distributed or published by you in whole or in part, for any purpose. If you have received this document by mistake, please delete or destroy it, and notify the sender immediately. Phillip Securities Research shall not be liable for any direct or consequential loss arising from any use of material contained in this publication. The information contained in this publication has been obtained from public sources, which Phillip Securities Research has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively, the “Research”) contained in this publication are based on such information and are expressions of belief of the individual author or the indicated source (as applicable) only. Phillip Securities Research has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete, appropriate or verified or should be relied upon as such. Any such information or Research contained in this publication is subject to change, and Phillip Securities Research shall not have any responsibility to maintain or update the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the preparation or issuance of this report, (i) be liable in any manner whatsoever for any consequences (including but not limited to any special, direct, indirect, incidental or consequential losses, loss of profits and damages) of any reliance or usage of this publication or (ii) accept any legal responsibility from any person who receives this publication, even if it has been advised of the possibility of such damages. You must make the final investment decision and accept all responsibility for your investment decision, including, but not limited to your reliance on the information, data and/or other materials presented in this publication. Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this material are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this publication is not indicative of future results. This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This publication should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgment. The fact that this publication has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this material is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this publication involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an

Morning Note 9 January 2013

13 of 16

independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks. Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this research should take into account existing public information, including any registered prospectus in respect of such product. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this publication, and may have performed services for or solicited business from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this publication. Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment. To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold a interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this publication. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, which is not reflected in this material, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the preparation or issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this material. The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction. Section 27 of the Financial Advisers Act (Cap. 110) of Singapore and the MAS Notice on Recommendations on Investment Products (FAA-N01) do not apply in respect of this publication. This material is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this material may not be suitable for all investors and a person receiving or reading this material should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such

Morning Note 9 January 2013

14 of 16

products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products. Please contact Phillip Securities Research at [65 65311240] in respect of any matters arising from, or in connection with, this document. This report is only for the purpose of distribution in Singapore.

Morning Note 9 January 2013

15 of 16

Contact Information (Singapore Research Team)

Chan Wai Chee Joshua Tan Derrick Heng CEO, Research Head of Research Deputy Head of Research

Special Opportunities Global Macro, Asset Strategy SG Equity Strategist & Transport

+65 6531 1231 +65 6531 1249 +65 6531 1221 yebo@phillip.com.sg joshuatan@phillip.com.sg derrickhengch@phillip.com.sg

Magdalene Choong, CFA Go Choon Koay, Bryan Travis Seah

Investment Analyst Investment Analyst Investment Analyst Regional Gaming Property REITs +65 6531 1791 +65 6531 1792 +65 6531 1229

magdalenechoongss@phillip.com.sg gock@phillip.com.sg travisseahhk@phillip.com.sg

Ken Ang Ng Weiwen Roy Chen Investment Analyst Macro Analyst Macro Analyst

Financials, Telecoms Global Macro, Asset Strategy Global Macro, Asset Strategy +65 6531 1793 +65 6531 1735 +65 6531 1535

kenangwy@phillip.com.sg ngww@phillip.com.sg roychencz@phillip.com.sg

Nicholas Ong Research Assistant Investment Analyst General Enquiries

Commodities, Offshore & Marine +65 6531 1240 (Phone) +65 6531 5440 research@phillip.com.sg

nicholasonghg@phillip.com.sg

Morning Note 9 January 2013

16 of 16

Contact Information (Regional Member Companies)

SINGAPORE

Phillip Securities Pte Ltd Raffles City Tower

250, North Bridge Road #06-00 Singapore 179101

Tel : (65) 6533 6001 Website: www.poems.com.sg

MALAYSIA

Phillip Capital Management Sdn Bhd B-3-6 Block B Level 3 Megan Avenue II, No. 12, Jalan Yap Kwan Seng, 50450

Kuala Lumpur Tel (603) 21628841 Fax (603) 21665099

Website: www.poems.com.my

HONG KONG Phillip Securities (HK) Ltd

Exchange Participant of the Stock Exchange of Hong Kong 11/F United Centre 95 Queensway

Hong Kong Tel (852) 22776600 Fax (852) 28685307

Websites: www.phillip.com.hk

JAPAN

Phillip Securities Japan, Ltd. 4-2 Nihonbashi Kabuto-cho Chuo-ku,

Tokyo 103-0026 Tel: (81-3) 3666-2101 Fax: (81-3) 3666-6090

Website:www.phillip.co.jp

INDONESIA

PT Phillip Securities Indonesia ANZ Tower Level 23B,

Jl Jend Sudirman Kav 33A Jakarta 10220 – Indonesia

Tel (62-21) 57900800 Fax (62-21) 57900809

Website: www.phillip.co.id

CHINA

Phillip Financial Advisory (Shanghai) Co. Ltd No 550 Yan An East Road,

Ocean Tower Unit 2318, Postal code 200001

Tel (86-21) 51699200 Fax (86-21) 63512940

Website: www.phillip.com.cn

THAILAND Phillip Securities (Thailand) Public Co. Ltd

15th Floor, Vorawat Building, 849 Silom Road, Silom, Bangrak,

Bangkok 10500 Thailand Tel (66-2) 6351700 / 22680999

Fax (66-2) 22680921 Website www.phillip.co.th

FRANCE

King & Shaxson Capital Limited 3rd Floor, 35 Rue de la Bienfaisance 75008

Paris France Tel (33-1) 45633100 Fax (33-1) 45636017

Website: www.kingandshaxson.com

UNITED KINGDOM

King & Shaxson Capital Limited 6th Floor, Candlewick House,

120 Cannon Street, London, EC4N 6AS

Tel (44-20) 7426 5950 Fax (44-20) 7626 1757

Website: www.kingandshaxson.com

UNITED STATES

Phillip Futures Inc 141 W Jackson Blvd Ste 3050

The Chicago Board of Trade Building Chicago, IL 60604 USA

Tel +1.312.356.9000 Fax +1.312.356.9005

AUSTRALIA

Octa Phillip Securities Ltd Level 12, 15 William Street,

Melbourne, Victoria 3000, Australia Tel (03) 9629 8288 Fax (03) 9629 8882

Website: www.octaphillip.com