REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 3 June 2013

▌What’s on the Table…

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IOI Corporation - Hidden value in property unit We believe investors have yet to fully appreciate the potential value of its soon-to-be listed property unit. The group's plans to scale up new launches could boost its property earnings by 66% to its RM1bn target, while successful sales of overseas projects could lift earnings further. We raise our FY14-15 EPS by 2-5% to reflect higher property earnings. Our SOP goes up to RM6.00 on the removal of the 20% discount to its property RNAV to reflect our more bullish view on its property division. We raise our rating to Trading Buy from Neutral as we see near-term upside to the stock given the huge potential upside for its soon-to-be listed property unit.

Sime Darby Bhd - Lower prices the main dampener

At 70% of our and consensus full-year forecast, Sime’s 9MFY6/13 core net profit was below our and consensus numbers due to weaker plantation contributions. However, we are comforted that the 4Q could gain from the partial sale of its healthcare unit. Property earnings should improve in 4Q due to higher sales. We have cut our core earnings by 7% for FY13 to reflect lower CPO selling prices and fine-tuned our FY14-15 earnings. We have raised our SOP-based target price by 6% to reflect our new higher target market P/E of 15.6x, which boosts our plantation valuation. We remain Neutral on Sime due to challenging near-term prospects.

Eksons Corporation - Barking up the wrong tree

Eksons’s FY3/13 core net profit missed our forecast by 8% because of higher log costs and weak plywood prices in 4Q. Also below our expectations was the final DPS of 3 sen. The saving grace was its strong finances with RM0.32 net cash per share. We retain our target price which is based on 4.8x CY14 P/E, a 40% discount to the 8x sector P/E. The discount reflects Eksons’s long-term average discount to the sector P/E. We are downgrading the stock from neutral to Underperform as further declines in plywood demand and prices could de-rate the stock. Switch to our small-cap pick, Prestariang for exposure to the resilient education sector and attractive dividend yields.

Asia File Corporation - Europe blues

Banks - Apr 13 tracker – Hopes pinned on better 2H loan growth

Genting Bhd - Meeting its CSR obligations

Genting Malaysia - Searching for the next leg of growth

Muhibbah Engineering - Jobs are coming back

Economic Update - Apr monetary tracker: down but not out

▌News of the Day…

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• Johor Government to impose new tax on foreign property owners

• IJM Corp to sell stakes in its units to Eastern Pacific Industries

• Fitch: Telekom Malaysia to face higher competition

• Sime Darby to build eight port terminals in Weifang

• Wah Seong to invest US$744m in palm oil agro-industrial complex in Congo

• Bina Puri thrusted into limelight from delay in constructing KLIA2

• KLIA2 delayed to Feb 14

• BAT raises cigarette prices by 3%

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,500

1,550

1,600

1,650

1,700

1,750

1,800

May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13

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FBMKLCI

1769.22 -5.70pts -0.32%MAY Futures JUN Futures

1776 - (0.20% ) 1772 - (1.00% )———————————————————————————

Gainers Losers Unchanged436 422 265

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Turnover2224.25m shares / RM3448.112m

3m avg volume traded 1280.58m shares

3m avg value traded RM1685.47m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,769 3,311 5,069 1,562 22,392 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,769.22 (0.3) 4.8

FBM100 12,129.27 (0.1) 7.3

FBMSC 14,971.13 0.2 30.4

FBMMES 4,712.95 (0.4) 11.8

Dow Jones 15,115.57 (1.4) 15.3

NASDAQ 3,455.91 (1.0) 14.5

FSSTI 3,311.37 (0.7) 4.6

FTSE-100 6,583.09 (1.1) 11.6

Hang Seng 22,392.16 (0.4) (1.2)

JCI 5,068.63 (1.2) 17.4

KOSPI 2,001.05 0.0 0.2

Nikkei 225 13,774.54 1.4 32.5

PCOMP 7,021.95 1.0 20.8

SET 1,562.07 (1.2) 12.2

Shanghai 2,300.60 (0.7) 1.4

Taiwan 8,254.80 0.1 7.2

Close % chg Vol. (m)

LUSTER INDUSTRIE 0.215 2.4 259.8INGENUITY CONSOL 0.125 (3.8) 148.6

ASTRO MALAYSIA 3.230 2.5 100.0

CIMB GROUP HOLDI 8.280 (1.7) 41.8

MALAYSIA MARINE 3.170 (4.5) 31.5

KNM GROUP BHD 0.560 (4.3) 29.5

SAPURAKENCANA 4.500 9.5 26.8

TH HEAVY ENGINEE 0.830 (1.2) 26.5

Close % chg

US$/Euro 1.2991 (0.07)RM/US$ (Spot) 3.0952 (0.06)

RM/US$ (12-mth NDF) 3.1510 0.30

OPR (% ) 3.00 0.00

BLR (% , CIMB Bank) 6.60 0.00

GOLD ( US$/oz) 1,390 0.12

WTI crude oil US spot (US$/barrel) 91.97 (1.75)

CPO spot price (RM/tonne) 2,356 0.47

Economic Statistics

Market Indices

Top Actives

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

Daybreak Malaysia

June 3, 2013

2

Global Economic News…

The US Thomson Reuters/University of Michigan’s consumer sentiment index rose to 84.5 in the final May reading from the mid-month and consensus reading of 83.7. (Bloomberg)

US personal income experienced no change on a mom basis in Apr (a revised 0.3% in Mar), underperforming consensus of 0.1%, whilst consumer spending dipped 0.2% mom (a revised +0.1% in Mar), worse than consensus of no change. The PCE price index fell 0.3% mom (-0.1% in Mar), outpacing consensus of -0.2%, whilst the core PCE price index experienced no change on a mom basis (a revised 0.1% in Mar), less than consensus of 0.1%. (Bloomberg)

US Treasuries are set to extend losses and price swings may intensify as growth allows central banks to withdraw stimulus, the Bank for International Settlements said. (Bloomberg)

China’s manufacturing PMI inched up to 50.8 in May from 50.6 in Apr. (Bloomberg)

South Korea exports grew 3.2% yoy in May (0.4% in Apr), while imports shrank 4.8% (-0.3% in Apr). The trade surplus widened to US$6.0bn from US$2.4bn in Apr. (Bloomberg)

Inflation in South Korea slowed to 1% yoy in May from 1.2% in Apr, and below expectations of 1.2%. (Bloomberg)

India’s GDP growth grew at 4.8% in 1Q13 (4.7% in 4Q12), in line with poll estimates. The full year economic growth for the fiscal year 2012/13 came in at 5% (6.2% in FY2011/12). (Bloomberg, Reuters)

Thailand’s total exports grew 3.7% yoy in Apr (4.2% in Mar) to US$17.3bn, while imports were up 8.5% (-12.5% in Mar) to US$18.9bn. The trade balance was in a deficit of US$1.6bn after a surplus of US$2.0bn in Mar. The current account balance reported a deficit of US$3.4bn (a surplus of US$1.9bn in Mar), while the overall balance of payments stood at a surplus of US$305m (deficit of US$65m in Mar). (Bloomberg)

Thailand’s business sentiment index fell to 48.8 in Apr from 54.4 in Mar. (Bloomberg)

The M2 measure of broad money supply in Singapore grew 9.6% yoy in Apr (8.5% in Mar). Credit growth increased to 20% from 19.7% in Mar. (Bloomberg)

Money supply growth (M3) in the Philippines picked up to 13.2% yoy in Apr (11.4% in Mar), while bank lending expanded 13.7% (14.7% in Mar). (Bloomberg)

Daybreak Malaysia

June 3, 2013

3

Malaysian Economic News…

Broad money or M3 growth moderated to 8.2% yoy in Apr (+9.1% in Mar). Net financing to the private sector grew 11.1% in Apr (+11% in Mar). Outstanding loans of the banking system showed steady growth of 10.5% (+10.6% in Mar). (Bank Negara Malaysia)

The producer price index (PPI) contracted 4.9% yoy in Apr (-4.2% in Mar) with PPI for local production decreased by 6.5% (-5.9% in Mar) and the import price index declined by 1.2% (-0.3% in Mar). On a month-on-month basis, the PPI fell 0.5% (-0.8% in Mar), due to the drop in the PPI for local production by 0.5% (-1.3% in Mar) and the fall in the import price index by 0.4% (+0.3% in Mar). (Bernama)

Members of the public have been urged to give their views and proposals on Budget 2014 via email, memorandum or letter to the Finance Ministry. Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said a special ministry team will evaluate the public's input.

He said for this year's budget, the government expects to be able to achieve a budget deficit of 4% of GDP after finding that the national income and expenditure are moving in that direction.

"We aim to lower the deficit to 3.5% next year and to 3% in 2015, we will continue to work to achieve a balanced budget with a surplus," he said, adding Budget 2014 is expected to be tabled in Parliament this Oct.

Infrastructure development in the rural areas will be given priority by the government in the Budget 2014, particularly in the interior of Sarawak and Sabah, he said.

The allocation for the infrastructure development will be decided after detailed discussions to draft the budget (RM4.5bn in 2013), he added. (Bernama)

The Johor Government will impose a new tax rate on about 130,000 foreign ownership of property in the state, which varies from the rate imposed on local ownership. Menteri Besar Datuk Seri Mohamed Khaled Nordin said the move was to boost earnings for the local authorities while enhancing services to residents. The rates were still under discussion but they would be imposed by the end of 2013. He added that the decision had been made to boost the state’s coffers. (Bernama, Malaysian Insider)

Malaysia and Indonesia will enhance cooperation in business by promoting the products of companies from both countries to international markets. Minister of Domestic Trade, Cooperatives and Consumerism, Datuk Hassan Malek said it includes training in quality control and preparation of products capable of competing in international markets such as franchising and retailing (convenient stores).

"We will establish a joint working committee to discuss and organise measures to realise this partnership for mutual interest," he said.

For starter, the partnership will focus on markets in the Asean region and it will then be rolled out across the world. (Bernama)

A total of 7,317 Indonesians are shareholders in a number of companies registered in Malaysia at present. At the same time, directorships among Indonesian citizens in Malaysia stood at 10,989. The data was disclosed by the

Daybreak Malaysia

June 3, 2013

4

Companies Commission Malaysia (CCM) CEO Mohd Naim Daruwish at the Malaysia-Indonesia business forum on last Saturday.

He added that eight companies headquartered in Indonesia, had registered their branches in Malaysia.

The companies are P.N. Planarian National Indonesia, PT Margate Unsanitary Airlines, PT Lion Mentor, Relays Industry PT, PT Bank Syria Maumelle Indonesia, TBK, KSO-SCISI, PT Rain Airlines and PT Wings Abaci.

As of Apr this year, 1,033,709 companies had registered with the CCM and they comprised 1,029,192 local outfits and 4,517 overseas entities.

Data also shows that foreign companies registered with the CCM over the past 13 years had risen annually, from 3,896 in 2000 to 4,517 in Apr. (Bernama)

Deputy International Trade and Industry Minister Hamim Samuri has urged Malaysian Muslim entrepreneurs to tap into the huge international halal market, saying the nation's annual exports of halal products worth RM30bn pale in significance compared to the global halal market worth RM73tr. He said Malaysian halal products enjoy wide credibility globally due to the government's role and commitment in issuing halal certification for every halal product, unlike in other countries where the certification may be issued by non-governmental organisations and mosque management boards. (Bernama)

Bilateral trade between Malaysia and Africa is expected to hit US$15bn over the next three years from US$8.5bn recorded last year. Namibian High Commissioner to Malaysia Gebhard Ben Kandanga said he was basing the projection as Malaysia and Namibia enjoyed cordial relations in the economic, trade, education and political fields.

“Africa's imports from Malaysia are mainly palm oil, rubber, electronics and component parts, while Malaysia buys fish and minerals from us,” he said.

He expects more Malaysian companies to set up businesses in Africa, particularly in construction and oil and gas sectors.

There were more than 20 Malaysian companies operating in Africa, among them are Bumi Armada Bhd, Sime Darby Bhd, Irish Corporation, Marry Brown and Lim Kok Wing University. (Bernama)

The Malaysian Chamber of Mines (MCOM) is hopeful that the Bill for the formation of the Mineral Industry Development Board (Mineral Board) can be tabled at this month's sitting of the new Parliament, said president Datuk Seri Dr Mohd Ajib Anuar. He said the Mineral Board formed an integral part of the institutional framework for an orderly, progressive and authoritative development of the domestic mineral resource industry. (Starbiz)

Langkawi Development Authority (Lada) is optimistic of securing RM2bn of additional investments by year end. This will increase the total investment Lada has attracted under its Langkawi Tourism Blueprint 2011-2015 to more than RM7bn, far exceeding its initial target of RM5bn.

The agency has identified 10 potential investors for several significant projects on the island hat will boost the local economic growth.

However, he did not disclose the details of the projects and investors. (BT)

Daybreak Malaysia

June 3, 2013

5

Political News…

The proposed setting up of the parliamentary panel to oversee the Election Commission's operations will clear and boost the body's image. Its deputy chairman Datuk Wan Ahmad Wan Omar said the panel would increase the rakyat's confidence in the electoral process as it comprises members from Barisan Nasional and opposition parties. Its expected to be set up after the 13th Parliament starts its first meeting session on June 24. "EC is hoping that this panel will be a permanent one. A panel which will get EC closer and more direct with the Parliament, thus erasing the perception that we are not independent and being controlled by the prime minister and the PM's Department." (NST)

Sabah Chief Minister Datuk Seri Musa Aman said he had reason to believe the presence of PKR VP Nurul Izzah Anwar here on the eve of the Kaamatan harvest festival would pose a threat to the state's peace. "Nurul Izzah's intentions in coming to Sabah this time around may not be as innocent as she and her fellow opposition members make it out to be." He said contrary to what was being spread in social media, the ban was not politically motivated. (NST)

Pakatan leaders have distanced themselves from a band of cyber troopers, known as the Red Bean Army (RBA), which was allegedly engaged in inciting hatred against the government by spreading false claims over social media. PKR de facto leader Datuk Seri Anwar Ibrahim and DAP secretary-general Lim Guan Eng denied any knowledge of the group and refuted allegations that Pakatan was funding RBA to attack Barisan Nasional leaders and create rumours of fraud in the 13th general election. (NST)

Corporate News…

IJM Corp, via its units, has entered into a share sales agreement to dispose their equity stakes in several companies to Eastern Pacific Industrial Corp Bhd (EPIC) for RM240m. The companies involved are RB Plantations Sdn Bhd, Konsortium Pelabuhan Kemaman Sdn Bhd (KPK), Pilihan Alam Jaya Sdn Bhd, Sensasi Wawasan Jaya Sdn Bhd and Sukma Samudra Sdn Bhd. “The expected gain on the proposed disposal is about RM123m, which will be recognised in FY14." it said. The proposed disposal of KPK was conditional upon EPIC obtaining the Economic Planning Unit's approval within three months from the date of the agreement or a further extension period of one month from the expiry of the initial three months. (StarBiz)

The proposed divestments are expected as the group had previously indicated its plans to monetise its assets in Kemaman. We view this move positively as it will enable the group to allocated for capex mainly for the expansion of Kuantan Port, its other port concession. The gain on disposal of RM123m would enhance FY14 EPS by 22%.

IJM Land will be investing RM275m to improve accessibility and road infrastructure to three of its core developments, namely, Pantai Sentral Park, Rimbayu Shah Alam and The Light in Penang. “IJM Land and its JV partner (Amona Development Sdn Bhd) will spend around RM75m. to provide a new access via the New Pantai Expressway to its Pantai Sentral Park development,” CEO/MD Datuk Soam Heng Choon said.

Its Pantai Sentral Park project, be to launched at end-2013, will have a mixture of low and high-rise commercial and residential development, with a GDV of RM3bn. The 58-acre project is located next to YTL Land & Development Pantai Hill Park.

In Penang, the group will be spending about RM100m for The Light project's road infrastructure. The 152-acre development on reclaimed

Daybreak Malaysia

June 3, 2013

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land will have 1,000 residential developments. Commercial projects for The Light are in the final stages of design at the moment. The residential portion, known as Collection IV, will be launched next year. (StarBiz)

A newly set-up mobile virtual network aggregator (MVNA), Enabling Asia Tech S/B, is aiming to launch give new mobile virtual network operators (MVNOs) within a year. An MVNA purchases mobile airtime in bulk from a partner mobile operator, adds its service platform and then wholesales the airtime to multiple MVNOs, which in turn sells the mobile service to end-users.

"With us, brands can launch their mobile services speedily and easily in less than 90 days, and at lower cost than trying to do that with the telcos," CEO Loke Yee Siong said. Enabling Asia uses U Mobile's network and partners France-based Sisteer, which has experience in developing MVNAs and MVNOs in 30 countries.

The latest MVNO addition is is Enabling Asia's Buzz Me. Its CCO Chee Pok Jin says, "The segment that we are competing for is the youth. Youths don't have loyalty to their number but will readily move to a different provider if they get a better deal. They will also convince their friends." (The Edge Weekly)

We don't expect Enabling Asia nor Buzz Me to make a significant impact on the industry as the key market segments, including that of the youth market, are already well served by existing network operators and key MVNOs such as Tune Talk. New players will have an uphill task of carving out a niche for themselves, in our view.

Fitch Ratings says Telekom Malaysia will face higher competition in the fast-growing, increasingly important data segment in 2013. While Fitch does not expect this to threaten its credit rating over the next two years, if competition causes margins to decline and/or other factors lead to funds flow from operations (FFO)-adjusted net leverage falling below 2.0x (current expectations 1.5x-1.7x), the ratings may be downgraded.

Competition in the Malaysian data segment will intensify as eight 4G/Long Term Evolution (LTE) spectrum owners will launch services in 2013. Also, the 'resellers' - operators who lease capacity from TM on high speed broadband network (HSBB) network and market to retail and business consumers - are likely to compete on price to gain market share.

Leading wireless operators including Maxis and Axiata have already reduced data tariffs and are likely to keep LTE pricing the same as 3G data pricing, heightening competition further. (Fitch Ratings)

More than a million people have signed up for the RM200 youth smartphone rebate plan since 1 Jan, but only 513,025 have actually redeemed them said Malaysian Communications and Multimedia Commission strategic adviser Sheikh Raffie Abd Rahman. At the moment, a little more than 400,000 people are still within the approved list but have not redeemed their rebates yet. The RM200m rebate plan is meant for those aged 21 to 30 with month incomes below RM3,000. (The Star)

Sime Darby Bhd is partnering China's Weifang Municipal Port and Navigation Bureau in a RMB2bn (RM1bn) project to build eight terminals at Weifang Port, a port in eastern Shandong province in China. Sime Darby, via its indirect subsidiary Sime Darby Overseas (HK) Ltd, had signed a Memorandum of Understanding (MoU) with Weifang Municipal Port and Navigation Bureau to build two 30,000-tonne liquid chemical terminals, three 30,000-tonne

Daybreak Malaysia

June 3, 2013

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multi-purpose terminals and three 30,000-tonne general terminals at Weifang Port. The project is in line with the Weifang government's master plan. "The MoU does not constitute any legal binding obligation between the parties until the relevant approvals have been obtained and definitive and binding agreements are executed," said Sime Darby. (sun)

Wah Seong plans to invest US$744m to develop a palm oil agro-industrial complex including a 180,000-hectare palm plantation in the Republic of Congo, the country's agriculture minister said. The investment through the group's ATAMA Plantation subsidiary will, when completed, create the largest palm oil project in the Congo basin area and propel the group to the top of the global palm producers. "About US$744m will be invested in the first ten years," Rigobert Maboundou said during a ceremony at the future site of the project around 800 km (500 miles) north of the capital Brazzaville. Construction of the palm oil transformation units will begin next year and production will kick off in 2017, Leong Kian Ming, ATAMA's CEO, said during the ceremony. "From 140,000 tonnes, production will rise to 720,000 tonnes per year at its peak," Kian Ming said. (Reuters)

The Johor state government will impose higher tax rates for about 130,000 foreigners who own property in the state. Mentri Besar Datuk Seri Mohamed Khaled Nordin said the amount was still being discussed but the new rates would be imposed by the end of the year. "Tax payers, however, do not have to worry about being burdened with higher taxes as there will be no increase in tax for lower priced properties," he said. However, he said there could be an increase for those who owned high-end property that were priced in the millions. (Star)

Bina Puri was recently thrusted into the limelight when Malaysia Airports (MAHB) said that it would take KLIA2 contractors to task for the delayed completion of the airport. MAHB said that it would impose liquidated and ascertained damages (LAD) on the responsible parties. The main contractors for the KLIA2 project are UEM Construction Sdn Bhd, and JV partner, Bina Puri. The construction project was worth RM997.2m. Bina Puri's portion was 40% or about RM400m. The contract first started in August 2010.

ED Matthew Tee said that contractually, Bina Puri had grounds to appeal for further extension without incurring the LAD. “When we talk about a delay, we also need to ask why there is a delay. Perhaps some decisions were not made. However, the completion of the entire KLIA2 project should be done by 4Q13." he said.

The group's construction orderbook stood at RM1.7bn, with a balance GDV of RM2.4bn for its property projects. In the past, Bina Puri managed to secure some RM1bn worth of new jobs p.a. The group targets to secure at least RM500m worth of contracts this year. (StarBiz)

The completion of KLIA2, the new low-cost terminal in Sepang, has been delayed because certain contractors kept asking for extension. The airport, which is designed to handle 45m passengers a year, is now expected to be completed by the first quarter of next year, said a source. “The contractors notified MAHB two weeks ago that they could not meet the deadline and have asked to extend the klia2 opening date to February 1 2014,” the source said.

Another factor that contributed to the delay was changes to the job scope, the source said. Many changes led the work packages to rise from 37 to 51. This in turn had caused the cost to balloon to RM4bn from the original RM2bn. Due to these factors, it is unfair to point fingers at MAHB for the delays, said the source.

Daybreak Malaysia

June 3, 2013

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“Currently, the new terminal is about 90% completed, except for the terminal building,” said another source. Some of the work like the installation of the automatic baggage handling system and ticketing counters cannot be started as the main terminal building has yet to be completed.

MAHB had announced to Bursa Malaysia recently that it “will impose liquidated ascertained damages on those contractors and any other recourse available to the operator under contract”. The sources revealed that the contractors could pay up to RM200,000 a day if more delays occur. (BT)

British American Tobacco Malaysia (BAT Malaysia) has announced a 3% increase in the prices of all its cigarette brands effective 3 Jun 2013. Commenting on the price increases, Datuk William Toh, Managing Director, BAT Malaysia said, "As with all other companies, BAT Malaysia is faced with inflationary pressures, labour and input costs, resulting in rising operating costs over time. In addition, the legal tobacco industry volumes are also affected by continuing high levels of illicit trade (in 2012 at 34.5%) which has impacted our sales of legal cigarettes.” (Bernama)

With less than three years to go before motor and fire insurance rates are de-tariffed, insurers, who are bracing for a price war, have embarked on various measures to ensure their market share and profitability are not significantly impacted. They are looking at various strategies like risk-based pricing, product innovation and differentiation, claims servicing as well as strengthening of delivery and distribution channels. The pricing of the classes of insurance would be driven by the market and based on risk profiles of individuals.

A person with a higher risk would likely pay more and vice-versa. This would translate into additional demand for insurance as the lower risk group of customers would no longer need to cross-subsidise the higher risk group. Industry players say the removal of the motor and fire tariffs which is expected to come on stream by 2016 would set the stage for a price war that could erode the profitability of insurers in the short term. (Starbiz)

Supermax is expecting slimmer profit margin for the rest of the year as the current price war on the nitrile variant intensifies. "As production expand, cost per thousand pieces of gloves will continue to settle," said executive chairman and group MD Datuk Seri Stanley Thai. On the company's outlook, he said Supermax's robust first quarter results will help sustain results by year-end despite further margin squeeze for nitrile gloves in the next few months. To date, nitrile gloves make up 35% of Supermax's total output. Thai forecast further compression of between 9-11%. (BT)

Eversendai Corp Bhd is set to make its maiden foray into Sri Lanka. Eversendai executive chairman and group managing director, Tan Sri A.K. Nathan, said Sri Lanka offers solid opportunities in the development of iconic buildings. Sri Lanka is opening up to foreign investors. The country is developing and Eversendai, with its track record and expertise, is eyeing several projects there. (BT)

Naim Holdings Bhd, a Sarawak-based property development and construction company, is expected to win several new jobs, including the upgrading of the Pan-Borneo Highway that will cost more than RM10bn, a source said. The government is considering upgrading the 2,083km toll-free

Daybreak Malaysia

June 3, 2013

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Pan Borneo highway, which was built in the 1960s. The upgrading is expected to start from Sematan in Sarawak to Serudung in Sabah and will take around five years. The highway, which also passes through Brunei, will open up more rural areas via the construction of secondary or feeder roads. Works Minister Datuk Fadillah Yusof said recently the upgrading of the Pan Borneo highway is one of the projects that is high on the priorities list.(BT)

PJ Development Holdings Bhd (PJD) has bought a 5.9 acres industrial leasehold land in Petaling Jaya for RM124.2m, which has the potential to be re-developed for retail and service apartments. The company said its wholly-owned subsidiary Sun-PJDC Sdn Bhd has entered into a sale and purchase agreement with DKSH Central Services Sdn Bhd to purchase a piece of leasehold land with office and industrial buildings and warehouses in Seksyen 13, Petaling Jaya. (Starbiz)

IHH Healthcare Bhd's unit Parkway (Shanghai) Hospital Management Ltd has received a licence from the China authorities to establish a wholly owned enterprise reinvestment clinic named Suzhou Industrial Park Yuan Hui Clinic Co Ltd.The licence was valid from May-2013 to May-2033 and the clinic had a registered capital of 3m yuan (RM1.5mi). (Starbiz)

NCB Holdings ED Datuk Abdul Samad Mohamed will oversee the daily operations of Kontena Nasional while a financial clean-up is being undertaken at the logistics company. This follows the resignation of its former CEO Hood Osman about two weeks ago after parent, NCB Holdings, announced that Kotena incurred a pre-tax loss of RM19.2m for FY12. Sources said Hood left because "he had overlooked the costs and assured a lot of business but couldn't deliver them." (Financial Daily)

Green Packet Bhd's wholly owned subsidiary, Worldline Enterprise, is proposing to dispose of a leasehold land together with a 12-storey office building to SYM World Realty for RM49m. The company also said its 55%-owned subsidiary, Packet One Network, had entered into a tenancy agreement to rent the property from SYM World Realty. It said the proposed disposal and proposed tenancy would enable the company to raise funds for its working capital, repayment of bank borrowings and/or development expenditure. “Furthermore, the proposed disposal would also enable the company to unlock the value of the property and realise a gain on disposal of approximately RM13.9m upon the completion of the proposed disposal. (Starbiz)

Daybreak Malaysia

June 3, 2013

10

BMSB: Changes in shareholdings

Type of No of Ave Price

31-May-13 Date transaction securities Company (RM)

EPF 27/5-28/5 Disposed 5,000,000 MALAYSIAN AIRLINE SYSTEM 

EPF 27/5-28/5 Disposed 3,528,500 GAMUDA

EPF 27/5-28/5 Disposed 1,884,800 DRB-HICOM

EPF 28/5 Disposed 1,751,900 IJM CORPORATION

EPF 28/5 Disposed 1,702,900 AXIATA GROUP

EPF 28/5 Disposed 1,451,300 BUMI ARMADA

EPF 28/5 Disposed 1,000,000 MAH SING GROUP

EPF 28/5 Disposed 1,000,000 IJM LAND

EPF 28/5 Disposed 972,100 MALAYAN BANKING 

EPF 28/5 Disposed 925,000 STAR PUBLICATIONS

EPF 28/5 Disposed 730,200 PUBLIC BANK

EPF 28/5 Disposed 607,200 GENTING PLANTATIONS 

EPF 28/5 Disposed 500,000 PUNCAK NIAGA

EPF 28/5 Disposed 400,000 CAPITAMALLS MALAYSIA TRUST

EPF 27/5-28/5 Disposed 233,400 ALLIANCE FINANCIAL GROUP

EPF 28/5 Disposed 196,700 MALAYSIA AIRPORTS

EPF 28/5 Disposed 135,300 AFFIN HOLDINGS

EPF 28/5 Disposed 75,400 MBM RESOURCES

EPF 28/5 Disposed 49,900 IGB CORPORATION

EPF 28/5 Disposed 22,700 HONG LEONG BANK

EPF 23/5 Disposed 3,900 BRITISH AMERICAN TOBACCO

Skim Amanah Saham Bumiputera 27/5-28/5 Disposed 4,200,000 AXIATA GROUP

Skim Amanah Saham Bumiputera 27/5-28/5 Disposed 1,600,000 HOCK SENG LEE

Skim Amanah Saham Bumiputera 28/5 Disposed 1,500,000 CHEMICAL COMPANY OF MALAYSIA

Skim Amanah Saham Bumiputera 28/5 Disposed 111,800 BIMB HOLDINGS

Skim Amanah Saham Bumiputera 27/5-28/5 Disposed 29,400 DUTCH LADY MILK

Permodalan Nasional Berhad 28/5 Disposed 1,500,000 CHEMICAL COMPANY OF MALAYSIA

Permodalan Nasional Berhad 28/5 Disposed 1,000,000 SIME DARBY

Mitsubishi UFJ Financial Group, Inc 27/5 Disposed 2,061,400 CIMB GROUP

Mitsubishi UFJ Financial Group, Inc 27/5 Disposed 14,400 ALLIANCE FINANCIAL GROUP

EPF 23/5-28/5 Acquired 10,842,400 CIMB GROUP

EPF 28/5 Acquired 2,540,600 AMMB HOLDINGS

EPF 28/5 Acquired 2,100,000 AIRASIA

EPF 28/5 Acquired 2,000,000 SIME DARBY

EPF 28/5 Acquired 1,398,500 MAXIS

EPF 27/5-28/5 Acquired 1,221,700 TELEKOM MALAYSIA

EPF 28/5 Acquired 1,000,000 WCT

EPF 28/5 Acquired 950,000 KUALA LUMPUR KEPONG

EPF 28/5 Acquired 898,500 YTL CORPORATION

EPF 28/5 Acquired 849,200 DIGI.COM

EPF 28/5 Acquired 606,500 KPJ HEALTHCARE

EPF 28/5 Acquired 580,000 TELEKOM MALAYSIA

EPF 27/5-28/5 Acquired 537,400 LAFARGE MALAYSIA

EPF 28/5 Acquired 425,000 HOCK SENG LEE

EPF 28/5 Acquired 348,700 POS MALAYSIA

EPF 28/5 Acquired 300,000 WAH SEONG CORPORATION

EPF 28/5 Acquired 277,900 PPB GROUP

EPF 28/5 Acquired 236,400 HARTALEGA HOLDINGS

EPF 28/5 Acquired 227,000 SAPURAKENCANA PETROLEUM

EPF 28/5 Acquired 210,200 SP SETIA

EPF 28/5 Acquired 156,000 DIALOG GROUP

EPF 28/5 Acquired 141,200 IHH HEALTHCARE

EPF 28/5 Acquired 74,400 TH PLANTATIONS

Skim Amanah Saham Bumiputera 27/5-28/5 Acquired 2,320,000 MAXIS

Skim Amanah Saham Bumiputera 28/5 Acquired 876,000 SIME DARBY

Lembaga Tabung Haji 13/5-17/5 Acquired 566,100 NAIM HOLDINGS 

Kumpulan Wang Persaraan 28/5 Acquired 577,500 TOP GLOVE CORPORATION 

Oversea-Chinese Banking Corporation 28/5 Acquired 435,600 CYPARK RESOURCES 

Aberdeen Asset Management PLC 27/5-28/5 Acquired 44,700 UNITED MALACCA SOURCES: BMSB

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BMSB: Changes in shareholdings

Type of No. of Ave Price

31-May-13 Date transaction securities Company (RM)

Aberdeen Asset Management PLC 27/5-28/5 Acquired 31,900 PANASONIC MANUFACTURING

Aberdeen Asset Management Sdn Bhd 27/5-28/5 Acquired 18,100 UNITED MALACCA

Aberdeen Asset Management Asia 27/5-28/5 Acquired 24,500 UNITED MALACCA

Aberdeen International Fund Managers 27/5-28/5 Acquired 24,500 UNITED MALACCA

Mitsubishi UFJ Financial Group, Inc 27/5 Acquired 135,400 SP SETIA

Mitsubishi UFJ Financial Group, Inc 27/5 Acquired 68,400 POS MALAYSIA

Mitsubishi UFJ Financial Group, Inc 27/5 Acquired 34,500 UNITED PLANTATIONS

Mitsubishi UFJ Financial Group, Inc 27/5 Acquired 27,600 ORIENTAL HOLDINGS

Mitsubishi UFJ Financial Group, Inc 27/5 Acquired 27,000 UNITED MALACCA

Mitsubishi UFJ Financial Group, Inc 27/5 Acquired 21,700 PANASONIC MANUFACTURING

Mitsubishi UFJ Financial Group, Inc 27/5 Acquired 7,900 GUINNESS ANCHOR 

Mitsubishi UFJ Financial Group, Inc 27/5 Acquired 5,900 TASEK CORPORATION

Mitsubishi UFJ Financial Group, Inc 27/5 Acquired 500 BRITISH AMERICAN TOBACCO

YTL POWER INTERNATIONAL 31/5 Shares Buy Back 5,700,000 YTL POWER INTERNATIONAL 1.51

GENTING MALAYSIA 31/5 Shares Buy Back 500,000 GENTING MALAYSIA 3.92

PARKSON HOLDINGS 31/5 Shares Buy Back 86,500 PARKSON HOLDINGS 3.78

IJM CORPORATION 31/5 Shares Buy Back 10,000 IJM CORPORATION 5.79 SOURCES: BMSB

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BMSB: ESOS & others

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

LITRAK 95,000 04-Jun-13 Exercise of ESOS

MAH SING GROUP 3,042,883 04-Jun-13 Exercise of ESOS SOURCES: BMSB

BMSB: Off-market transactions

31-May-13 Vol

SUNWAY 12,000,000

WINSUN 7,500,000

MTRONIC 6,965,000

PRESBHD 3,724,000

HARNLEN 1,000,000

PERMAJU 700,000

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

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

SOURCES: BMSB

BMSB: Entitlements & trading rights

3-Jun-13 Ann Date Entitlement Ex-Date Lodgement

TH PLANTATIONS 21-May-13 Bonus issue 1:5 3-Jun-13 5-Jun-13 SOURCES: BMSB, TE: Tax Exempt

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BMSB: Dividends

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

Wellcall Holdings Second interim-single tier  4.00 16-May-13 3-Jun-13 5-Jun-13 26-Jun-13

Unisem Final dividend - tax exempt 2.00 26-Apr-13 3-Jun-13 5-Jun-13 19-Jun-13

CMSB Final dividend 12.00 29-Apr-13 5-Jun-13 7-Jun-13 21-Jun-13

Prestariang Interim dividend - single tier 2.50 22-May-13 5-Jun-13 7-Jun-13 20-Jun-13

KLCC Property First interim dividend - single tier 4.50 23-May-13 6-Jun-13 10-Jun-13 20-Jun-13

Jobstreet Final dividend - single tier 2.75 29-Apr-13 10-Jun-13 12-Jun-13 28-Jun-13

Dialog Group Interim - single tier cash dividend 11.00 15-May-13 10-Jun-13 12-Jun-13 27-Jun-13

Petronas Dagangan Interim dividend - less tax at 25% 17.50 23-May-13 10-Jun-13 12-Jun-13 9-Jul-13

JobStreet Corporation First interim dividend - single tier 3.50 29-May-13 10-Jun-13 12-Jun-13 28-Jun-13

IJM Plantations First interim dividend - single tier 10.00 29-May-13 11-Jun-13 13-Jun-13 27-Jun-13

MRCB First and final dividend - single tier 1.60 28-May-13 11-Jun-13 13-Jun-13 3-Jul-13

& 0.4 less 25% income tax 0.40

IJM Plantations Interim dividend - single tier 7.00 28-May-13 12-Jun-13 14-Jun-13 3-Jul-13

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

Bumi Armada Final dividend - single tier 3.00 21-May-13 25-Jun-13 27-Jun-13 16-Jul-13

& 0.14 sen less 25% income tax 0.14

Genting Bhd Final dividend - less 25% tax 4.50 6-May-13 26-Jun-13 28-Jun-13 25-Jul-13

KPJ Healthcare Interim dividend - single tier 2.00 22-May-13 26-Jun-13 28-Jun-13 19-Jul-13

Kossan Rubber Industries Final dividend - tax exempt 7.00 18-Apr-13 28-Jun-13 2-Jul-13 16-Jul-13

Mudajaya First interim dividend 3.00 21-May-13 17-Jul-13 19-Jul-13 6-Aug-13

Kuala Lumpur Kepong Interim dividend - single tier 15.00 22-May-13 19-Jul-13 23-Jul-13 14-Aug-13

Kimlun Corporation Final dividend - single tier 4.80 23-May-13 25-Jul-13 29-Jul-13 28-Aug-13

Mah Sing Group First and final dividend - single tier 7.20 31-May-13 5-Sep-13 9-Sep-13 20-Sep-13

& 0.4 sen less income tax of 25%  0.40

SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

3-Jun-13 Ann Date Proposed

SUNWAY BHD 5-Apr-13 1 Rights Issue @ RM1.70 : 3 SOURCES: BMSB

BMSB: New Listing

Company Issue price Listing sought Tentative

Public Issue Offer for sale Private placement listing date

Leon Fuat Berhad 0.60 59,310,000 Up to 31,000.000 33,810,000 Main Market 5-Jun-13

No of shares

SOURCES: BMSB

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Corporate Actions

June 2013

SUN MON TUE WED THU FRI SAT

1

The Yang di-Pertuan Agong's Birthday

2 3 4 5 6 7 8

External Reserves, External Trade

9 10 11 12 13 14 15

IPI, Manufacturing Sales

Top Glove 3Q & conference call

Astro 1Q

16 17 18 19 20 21 22

CIMB Annual Asia Pacific Conference, CPI

CIMB Annual Asia Pacific Conference

External Reserves

23 24 25 26 27 28 29

SP Setia 2Q & briefing

Money Supply, PPI

30

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

July 2013

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6

External Trade External Reserves

7 8 9 10 11 12 13

MPC, IPI, Manufacturing Sales

14 15 16 17 18 19 20

CPI

21 22 23 24 25 26 27

External Reserves

28 29 30 31

Money Supply, PPI

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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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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Other jurisdictions: In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is only for distribution to professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

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, 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 Korea Exchange, 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 2012.

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

Daybreak Malaysia

June 3, 2013

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