REGIONAL DAILY December 26, 2012

MALAYSIA Daybreak | 7 July 2014

Key Metrics ▌What’s on the Table… —————————————————————————————————————————————————————————————————————— FBMKLCI Index Aviation - overall - Who benefits and who loses from new LCC terminals? 1,900 Tan Sri Tony Fernandes, AirAsia CEO, told The Edge recently that it hoped to 1,850 build LCC terminals in Penang, Kuching, and maybe even Langkawi, 1,800 as joint-development projects with state governments or with MAHB, in order 1,750 to serve AirAsia traffic in these airports. We see this initiative by AirAsia as 1,700 being fraught with political difficulties, and the outcome is unclear. Our Neutral

1,650 view on the Malaysian aviation sector is unchanged, with an Add on AirAsia (TP: Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 RM2.88) and Hold on MAHB (TP: RM8.07). Tanah Makmur Berhad - Prosperous land ——————————————————————————— FBMKLCI Tanah Makmur, the soon-to-be listed plantation vehicle of the royal 1884.91 -3.78pts -0.20% family, offers strong earnings growth prospects, driven by rising CPO prices, July Futures Aug Futures stronger property sales and a new earnings stream from its bauxite mining 1889 - (-0.29%) 1889.5 - (1.00%) ——————————————————————————— business. Property earnings could get a boost if it secures the contract to build Gainers Losers Unchanged the state administration complex in its KotaSAS property project. The contract 480 346 341 ——————————————————————————— could potentially boost the GDV of its property project by 67% to RM3bn. We Turnover view the company’s strong shareholders and the strategic location of some of its 1780.09m shares / RM1735.152m estates as its key strong points. The key disadvantages are the lack of scale and 3m avg volume traded 1771.42m shares 3m avg value traded RM2006.90m the older age profile of its estates, but it has plans to improve on these areas. ——————————————————————————— We arrive at a SOP-based target price of RM1.88, which implies an upside of Regional Indices 50% from its IPO price. FBMKLCI FSSTI JCI SET HSI 1,885 3,272 4,906 1,496 23,546 Malaysian Pacific Industries - Exciting times ahead ———————————————————————————————— Market Indices Our visit to MPI’s Carsem S-site revealed that the plant is now ramping up its Close % chg YTD % chg production to meet the stronger demand from the smartphone and tablet (S&T) FBMKLCI 1,884.91 (0.2) 1.0 FBM100 12,706.29 (0.1) 0.9 segment. We were positively surprised to learn that MPI is aggressively FBMSC 18,238.90 0.5 16.2 targeting 15% revenue contribution from new products within the next 2-5 FBMMES 6,735.37 (0.5) 18.7 Dow Jones 17,068.26 0.5 3.0 years and its positive breakthrough in manufacturing technology. We raise our NASDAQ 4,485.93 0.6 7.4 FY15-16 EPS forecasts by 15-20% to account for higher sales from upcoming FSSTI 3,272.25 (0.0) 3.3 FTSE-100 6,866.05 0.0 1.7 new products and stronger margins from operating efficiency. Overall, we Hang Seng 23,546.36 0.1 1.0 believe MPI’s growth prospects remain strong, with an impressive CY13-16 EPS JCI 4,905.83 0.3 14.8 KOSPI 2,009.66 (0.1) (0.1) CAGR of 48%. We maintain our Add rating and raise our target price to Nikkei 225 15,437.13 0.6 (5.2) RM7.00, based on 1.9x CY15 P/BV (vs. 1.3x previously) on stronger earnings PCOMP 6,962.28 0.9 18.2 SET 1,495.83 0.2 15.2 visibility. MPI is our top pick in the domestic semiconductor sector. Shanghai 2,059.38 (0.2) (2.7) Taiwan 9,510.05 (0.2) 10.4 Eastern & Oriental - Elmina land acquisition finalised ———————————————————————————————— Top Actives E&O has finally concluded the acquisition of 135 acres of land in Sungai Buloh, Close % chg Vol. (m) Selangor, from Sime Darby for RM239.8m or just below RM41 psf. Though the CHINA STATIONERY 0.080 6.7 75.5 EA HOLDINGS 0.130 8.3 60.0 purchase is not a surprise as a memorandum of agreement was first signed in MAS 0.225 (2.2) 58.3 Sep 13, we nonetheless view the conclusion positively as it will add RM1.54bn in KNM GROUP 0.965 0.0 45.8 ECONPILE 0.780 2.6 40.2 GDV to the group's Klang Valley landbank and we believe the pricing is TALAM 0.105 0.0 31.9 attractive. We make no changes to our EPS, Add rating or target price basis SUMATEC 0.325 0.0 27.1 (30% discount to RNAV), though we raise our target price after lifting RNAV by SHIN YANG 0.610 17.3 25.1 ———————————————————————————————— 2% to RM4.37 to factor the surplus value from Elmina. Economic Statistics Close % chg Sime Darby Bhd - Sells 135 acres of land to E&O US$/Euro 1.3593 (0.01) RM/US$ (Spot) 3.1860 (0.03) Economic Update - May exports expand 16.3% yoy RM/US$ (12-mth NDF) 3.2471 (0.43) OPR (% ) 3.00 0.00

BLR (% , CIMB Bank) 6.60 0.00 ▌News of the Day… —————————————————————————————————————————————————————————————————————— GOLD ( US$/oz) 1,320 (0.06) WTI crude oil US spot (US$/barrel) 104.06 (0.40) • Sime Darby seeking to raise US$500m (RM1.6bn) by listing its auto-mobile unit? CPO spot price (RM/tonne) 2,440.00 (0.12) • Daya Material’s President and CEO, Datuk Mazlin is resigning from the company ———————————————————————————————————————— • Pos Malaysia deny any interest in bidding for fuel subsidy rationalisation programme Terence WONG CFA T (60) 3 2261 9088 • Malaysia's exports in May rose 16.3% yoy (+18.7% in Apr) E [email protected] • Ire-Tex Corp making plans to tap into the global green electric vehicle industry

Sources: CIMB. COMPANY REPORTS IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. Sources: CIMB. COMPANY REPORTS Daybreak│Malaysia July 7, 2014

Global Economic News… The European Central Bank (ECB) will keep interest rates very low for a long period of time to ensure monetary stability but euro zone governments must do their part to boost growth and cut debt, ECB policymaker Benoit Coeure said. (Reuters)

European Central Bank (ECB) Governing Council member Christian Noyer warned euro-area governments against giving up on deficit reduction or looking to use a debt build-up to bolster growth. “Decades of of deficits have created profound skepticism. The current balance is fragile and any significant deviation from the current budget trajectory would probably be paid for, in a volatile environment, with higher borrowing costs,” he said. (Bloomberg)

European Central Bank (ECB) executive board member Sabine Lautenschlaeger said she does not see the ECB embarking on a bond-buying spree in the near future. She said a large-scale purchase of bonds would only be an option if the ECB faced extraordinary risks, adding: "I really don't see that right now". (Reuters)

China Premier Li Keqiang said that the country's economic growth has improved in the second quarter from the first quarter, while stressing that Beijing will rely on targeted measures to stabilize growth. (WSJ)

China Finance Minister Lou Jiwei said the central government will let more local governments issue bonds, as part of Beijing's efforts to expand financing channels for some provinces and cities that are in better financial positions than others. (WSJ)

Singapore Finance Minister Tharman Shanmugaratnam said he expects property prices to fall further, days after data showed home values in the city-state dropped for a third consecutive quarter. (Bloomberg)

The Taiwan central bank announced that the foreign exchange reserve in Jun amounted to US$423.45bn in total (US$421.65bn in May). (China Post, Bloomberg)

Indonesian presidential hopeful Joko Widodo plans to allow foreign investment in apartments to boost tax revenue, a move that could spur demand for property in the country’s luxury market.  Foreign investors would be able to purchase apartments worth at least Rp2.5bn (US$210,000) in the capital, other main cities and Bali island. (Bloomberg)

The Commerce Ministry insists that the US has not banned Thai products after the Kingdom was downgraded in its "Trafficking in Persons" report last month, but only suspended some cooperation and assistance in certain sectors, such as support for an educational and cultural exchange programme. (The Nation)

Philippines’ consumer prices slowed to 4.4% yoy in Jun (+4.5% yoy in May). (Antara News)

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Malaysian Economic News… Malaysia's exports in May rose 16.3% yoy (+18.7% in Apr), on demand for electronics, petroleum, palm oil and liquefied natural gas. Imports were 11.9% higher (5.0% in Apr), partly due to a 47.7% gain in imports of petroleum products. The trade surplus came in below forecasts at RM5.7bn, narrowing from RM8.7bn in Apr. (Bernama, Reuters, Department of Statistics)

Please refer to our Economic Update for further details.

Prime Minister Datuk Seri Najib Tun Razak announced four high impact programmes (HIPs) under the Small and Medium Enterprise (SME) Masterplan to accelerate the annual growth of SMEs from 6.3% to 9.3%. The four HIPs -- creating a single window to integrate business registration and licensing, SME Investment Programme, Going Export Programme (GoEx), and Catalyst Programme -- will be implemented in stages over the next few years. He said the SME Masterplan, which began in 2012, is aimed at raising SMEs' contribution to the gross domestic product to 41% by 2020. (Bernama)

The National Information and Communications Technology (ICT) Association of Malaysia, Pikom, projects the average monthly salary for ICT professionals this year to grow 8.2% to RM7,776 from RM7,152 last year. In addition, the the imminent implementation of the goods and services tax (GST) will also provide an impetus to the industry this year and the next, as organisations rush to replace and upgrade their systems to comply with the requirements, resulting in a demand for software developers. (Bernama)

Malaysia needs to make every effort to maintain the current healthy growth rate, said United Nations. Its System's Operational Activities for Development in Malaysia Resident Coordinator, Michelle Gyles-McDonnough, said if possible, the government should push it higher to ensure its ambitious targets for Vision 2020 could be met.  Meanwhile, on the productivity growth among women, she said, there was a need to not only sustain it locally but also in the global economic environment. "Women make up of over 68% of tertiary graduates in this country but do not remain long in the labour force," she said. (Bernama)

Investments from Chinese companies into Malaysia is expected to exceed US$2bn this year driven by the establishment of the Malaysia-China Kuantan Industrial Park, said Chinese Ambassador to Malaysia Dr Huang Huikang. "A big steel plant with a cost of US$1.4bn will be built at the park and upon completion, it will produce 3.5m tonnes of high quality steel," he said. Huang said so far Malaysian companies have been investing more in China, reaching US$7bn last year, compared with Chinese companies investment in Malaysia, which stood at US$1bn. (Bernama)

The 11th Malaysia Plan (11MP) will be implemented based on the federal government's capacity to provide and the needs of the respective state governments with regard to priority projects. Prime Minister Datuk Seri Najib Tun Razak said he would obtain information from each state in the country on their needs before the conclusions could be made in the 11MP.  "I will not make hasty decisions, but this is the process I will take for each state and we will gather (all the information) and decide whether the federal government has the capacity to do what it needs to do during the 11MP period."

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 He said the priorities in the 11MP would be in accordance with the wants of the state governments first, such as the need of the Terengganu government for flood-mitigation projects in Kemaman, besides improving the economy of the people in Terengganu. (Bernama)

Datuk Seri Mustapa Mohamed said he expects the country's trade growth this year to exceed the initial target of between 5-6%. In remarks following the release of encouraging trade data for the first five months of this year showing 10.2% growth, the Minister of International Trade and Industry said the main sectors continued to be resilient, contributing to the nation's economic progress.  "We find exports for the manufacturing sector rose about 14% and the electrical and electronics sector expanded more than 14%," he said.  Going forward, he said the global economic recovery would help to boost trade, especially exports, for the rest of the year.  "Generally, there's a recovery in the world economy with performance much higher than last year's, especially in the United States and the European Union while China's economic growth is expected to remain about the same as last year's 7.4%.  China's growth, although slower compared with 10 years ago, is still growing," he said. (Bernama)

The US government is now waiting for the arrival of a Malaysian government representative to hold further talks on the Visa Exemption Program after it had been agreed upon by US President Barack Obama during his visit to Malaysia recently. Malaysia's special envoy to the United States, Tan Sri Dr Jamaluddin Jarjis said the US government had suggested that Home Minister Datuk Seri Dr Ahmad Zahid Hamidi leads the visit to the US for this purpose.  The US Visa Exemption Program allows citizens of participating countries to enter the US without visa for a period of 90 days or less. So far, 37 countries are participating in the program. Among countries in the Asian region participating in the program are Brunei Darussalam, , Taiwan and Japan. (Bernama)

Risda has paid RM500 each to over 160,000 rubber smallholders and tappers affected by the slump in the world rubber price. Rural and Regional Development Minister Datuk Seri Mohd Shafie Apdal said the payment is expected to be completed in two weeks or before Aidilfirtri. (Bernama)

Prime Minister Datuk Seri Najib Tun Razak said the government will channel more development funds to the people in the rural areas once the Goods and Services Tax (GST) is implemented in the country. The cabinet has been informed that development in the rural areas was among the sectors to be given priority once the government obtained additional income from the GST implementation later. (Bernama)

The Kedah government is hoping that a feasibility study on its proposal to build an international airport in Kulim can be done as soon as possible. Menteri Besar Datuk Seri Mukhriz Tun Dr Mahathir said this was because the proposal was made based on the input from relevant stakeholders, such as Malaysia Airports Holdings Bhd (MAHB), the Department of Civil Aviation (DCA) and the industry. "That is why we are confident (to propose the construction of the airport), but a feasibility study still needs to be done. (Bernama)

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Prime Minister Datuk Seri Najib Tun Razak Sunday announced dividend payment totalling RM72.9m by Felda Global Ventures Holdings Berhad (FGVH). All 112,635 Felda settlers nationwide will receive RM647.78 each. The final dividend involves 10 sen per share to be paid via a trust fund on July 11. Felda also set aside RM30.5m for distribution as 'duit raya' to the settlers. "We will give RM300 to each family to ease their financial burden and to make preparation for Aidilfirtri," he said when breaking fast with Felda settlers, here today. Najib also handed commercial tithe payment totalling RM22.02m on behalf of Felda Group. (Bernama)

The Port Klang Authority (PKA) is confident of breaking into the Top 10 list of the world’s busiest ports in two years’ time, driven by the expansion of both its terminal operators and, surprisingly, the support of the controversial Port Klang Free Zone (PKFZ) that has taken off quite well. Port Klang is currently ranked 12th on the world’s busiest ports list based on last year’s volume of 10.3 million twenty-foot equivalent units (TEUs), which was a 3.5% increase over 2012. (Bernama)

Bank Negara Malaysia has established the Financial Services Talent Council, an initiative under the Financial Sector Blueprint to support a strong and competitive financial sector through a strategic focus on talent. A key focus of the council would be to identify the future talent demands of the financial sector and recommend strategies to develop, attract, retain and deploy domestic and international talent to meet the demand. (Bernama)

The impact of the El Nino weather phenomenon, which can cause the weather to be hotter and drier, is expected to reduce rainfall in the country during the monsoon season and prevent extreme floods. It was anticipated the monsoon season would be prolonged up to 190 days if the phenomenon hit the country. (Bernama)

Political News… Penang Deputy Chief Minister II Dr P. Ramasamy has challenged Tan Sri Muhyiddin Yassin to “bring May 13” after the deputy prime minister reportedly warned that a repeat of the 1969 race riots could not be ruled out.  Saying that in general did not wish to see a recurrence of the deadly inter-ethnic clashes, the Penang lawmaker criticised “irresponsible” leaders for fomenting the religious and racial tension currently stewing in the country.  “MIC might be scared, Gerakan might be scared, MCA might be scared, but I tell you, if you want to bring May 13, you bring it,” Ramasamy told a press conference. “Don’t talk. All the time talking May 13, May 13. Bring-lah May 13. You start May 13. This will be the first time the government starts May 13. You think what? You think we’re scared ah?” he added.  Muhyiddin, who is also Umno deputy president, reportedly said on Friday that a repeat of the May 13 race riots could occur if the country’s ethnic communities continue to criticise one another. Muhyiddin said that in Johor ethnic tensions that were allowed to simmer would lead to unrest when the various communities start to eye each other with suspicion. (Malay Mail)

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Tun Dr said Malaysia should rid itself of bureaucracy and handouts in the wake of integrating in the Asean Economic Community. He compared Malaysia's unique prowess in industrialisation to the entire Asean region's dependency on cheap labour, but pointed out that Malaysia had to rethink some of its policies. In his opinion, Malaysians should not depend on handouts, stating that he did not "believe in giving people money" while lambasting the impact of "bureacracy which is terrible and can cause delays". (Malay Mail)

Corporate News… Sime Darby Bhd , the world's top oil palm planter by landbank size, is seeking to raise about US$500m (RM1.6bn) by listing its auto-mobile unit as early as this year, people familiar with the matter said last Friday. Sime Darby has invited banks to make a pitch to win the initial public offering (IPO) mandate, it added. The plantation-to-motoring earlier flagged possible listings of some units to improve valuations. (Financial Daily) Please refer to our note for more details.

The major hurdles for the ailing Malaysian Airline System Bhd (MAS) to return to profitability are its employees' unions, a prominent think tank said. CEO of the Institute for Democracy and Economic Affairs Wan Saiful Wan Jan said whenever efforts were made to reform or restructure the airline towards profitability, the unions would come all out against many of the proposals. "So I think what we need to do to turn MAS into a profitable company is by taming down the influence of the unions. They are a little bit too influential, too vocal, too powerful.  Yes, respect employees' rights as it is absolutely imperative that their rights be respected. But the powers of the unions are sometimes not really in line with the interest of the company itself. It is ironic that the staff size in MAS is too big when the company itself is loss making. Usually, a company will aim at cutting costs when it is not doing well," he said. (Financial Daily)

The country's inflation rate will likely rise if the proposed "sin tax" on sugary drinks is implemented, said Nestle (Malaysia) Bhd. Its executive director of group corporate affairs Zainun Nur Abd Rauf said that the additional tax, if implemented, would come on the heels of the government's plan to launch the goods and services tax next April. She said this would result in more upward pressure on the country's inflation rate. Her thoughts were based on the fact that when sugar subsidy were removed in 2013, there was a subsequent rise in inflation. (Financial Daily)

Pos Malaysia Bhd has denied any interest in companies bidding for the proposed fuel subsidy rationalisation programme. Pos Malaysia in a statement said there had been numerous reports and media articles published recently in relation to its participation in the government's proposed fuel subsidy rationalisation programme. "Pos Malaysia, however, does not have any interest in any of the companies mentioned in the media that were reported as prospective bidders to the said programme," it said.  It said the company continuously evaluates business opportunities and considering its extensive network and distribution capacity throughout the country. It added that the company has the potential to be one of the service providers for the said programme. (StarBiz)

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Daybreak│Malaysia July 7, 2014

Gamuda is the favourite to secure the job as the project development partner (PDP) to oversee the implementation of key components of an integrated transportation plan on Penang island. The others in the running for the PDP job that is estimated to cost over RM5.5bn for the initial phase are IJM Corp, MMC Corp, Scomi Group and WCT Holdings.Two key components of the RFP are to build a 17.5km LRT project that connects the Komtar building to the airport and a link cutting across the island from Bayan Lepas to Tanjong Bungah, which costs RM4.5bn. The entire transport master plan is expected to cost RM27bn and to be executed over many years. (StarBiz)

Inari Amertron Bhd, an electronic manufacturing services (EMS) provider, plans to raise up to RM133.2m via a renounceable rights issue of up to 88.8m new shares, to fund the group's expansion plans and boost its working capital. The rights issue will be undertaken on the basis of one new share for every eight existing shares held, at an indicative subscription price of RM1.50 per new share. Subscribers will also be entitled to one free detachable warrant per rights share subscribed, which carries an indicative exercise price of RM2.00 per warrant. The indicative rights issue price represent a 48.5% discount from the theoretical ex-rights price of RM2.91, while the indicative warrants exercise price represent a 35.3% discount; both calculated based on the five days weighted average price of Inari Amertron shares up to 3 July 2014 of RM3.09 per share. (The Sun)

The redevelopment of Bukit Bintang Plaza (BB Plaza), here, will comprise a 60-storey luxury condominium atop a three-level mall, which will generate around RM3bn in gross development value. The redevelopment will be incorporated with an underground mass rapid transit (MRT) station that is currently under construction, said UDA Holdings chairman Datuk Johari Abdul Ghani.  A joint-venture company, set up by UDA Holdings and Tan Sri Syed Mokhtar Albukhary-controlled Tradewinds (M) Bhd, is undertaking the redevelopment work. Johari said Mohamed Ali Alabbar, who is the chairman of Tradewinds International Sdn Bhd and Dubai-based Emaar group, the Middle East’s premier property developer, will head the joint venture.  Mohamed Ali Alabbar is the man behind prodigious projects such as the Burj Khalifa, the world’s tallest building, and The Dubai Mall, the world’s largest shopping and entertainment destination. (BT)

A sure sign that all is not well in a company is when a major shareholder starts to unload his shares. At Daya Materials Bhd, alarm bells must be ringing. Datuk Mazlin Md Junid dropped a bombshell last Tuesday to announce he was resigning from the post as president and chief executive officer, although he would remain as a non-executive director. The move came as shares slumped 32% from its recent peak of 45 sen on Feb 24. At its closing price of 31 sen last Friday, the stock is down 14% year-to-date. Mazlin had been aggressively selling down his stake in Daya Materials since February, reducing his holding in the company from 143.36m shares in February to 127.34m shares as of July 2. Last month, he unloaded 8.5 million shares in the company in the open market.  Speculation is rife that Mazlin’s resignation came about following a fallout between him and managing director Nathan Tham. It is unclear what has driven the wedge between the two business partners, who together transformed Daya Materials from an unassuming polymer maker to a successful oil and gas (O&G) player.  Mazlin’s surprise move fuelled yet another speculation that he was joining Reach Energy Bhd, a shell company en route to Bursa Malaysia for the purpose of raising funds to acquire O&G assets. “The next company will be Kaya, not Daya,” he said (StarBiz)

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Daybreak│Malaysia July 7, 2014

OCBC Bank (M) Bhd’s former CEO and director Jeffrey Chew started his first day in property and education firm Paramount Corp Bhd as group CEO on July 1. Market watchers are wondering why Chew, a high-profile banker who has carved a niche for himself in commercial banking, would want to join a low-profile company. Secondly, how would Chew, without experience in property or the education sector, plan to rejuvenate Paramount?  Industry sources say Chew was keen to join Paramount because of his friendship with executive deputy chairman and major shareholder Datuk Teo Chiang Quan. Furthermore, he was up to the challenge of spearheading something different after more than two decades in the banking sector.  Chew’s entry into Paramount marks the start of a new phase of growth for the company. Along with him, Paramount hired Beh Chun Chong from Ireka Corp Bhd as deputy divisional CEO of Paramount Property, while Susan Ooi was appointed CEO of KDU College Petaling Jaya and chief marketing officer of both KDU University College and KDU College PJ. (StarBiz)

Ire-Tex Corp Bhd is making plans to tap into the global green electric vehicle industry with the new generation power management system via its wholly-owned subsidiary Zoomic Automation. Group executive director Teh Eng Huat told StarBiz that it was now in talks with a Japanese company to jointly develop a new type of power management system which could shorten substantially the charging time of batteries used in electric vehicles.  “The standard conventional charging time of these batteries is about six hours. The challenge is to speed up the charging time without causing the power management system to malfunction.“We hope to see some positive results from our negotiations with the Japanese company before the year ends,” Teh said.  He said the group was also looking into providing petrol kiosks in the country with the power management system and facilities for electric vehicles to recharge the batteries. (StarBiz)

Fajarbaru Builder Group Bhd's 51% owned Billion Variety Sdn. Bhd has inked a deal to extract timber from the Hutan Simpan Berkelah in Jerantut, Pahang. It said on Friday Billion Variety had signed a RM6m deal with Cekal Kasih Sdn Bhd for the extraction of trees over a land area of 1,423 acres. Fajarbaru would contribute 51% or RM3.06m of the cash consideration.  On May 27, Yayasan Pahang had made a letter of offer to Cekal Kasih to undertake timber extraction for 12 months from date of issuance of a licence from the Pahang Forestry Department. The major species of timber to be extracted are meranti, merbau, keruing and kempas. (StarBiz)

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BMSB: Changes in shareholdings Type of No of Ave Price 4-Jul-14 Date transaction securities Company (RM) EPF 1/7 Disposed 3,825,300 PUBLIC BANK EPF 1/7 Disposed 1,917,300 MAXIS EPF 1/7 Disposed 1,816,000 SAPURAKENCANA EPF 27/6-1/7 Disposed 1,170,800 UMW HOLDINGS EPF 1/7 Disposed 1,161,900 PERDANA PETROLEUM EPF 30/6 Disposed 1,000,000 BIMB HOLDINGS EPF 1/7 Disposed 800,000 DRB-HICOM EPF 1/7 Disposed 700,000 IOI PROPERTIES GROUP EPF 1/7 Disposed 605,200 DIGI.COM EPF 1/7 Disposed 515,500 AEON CO. (M) EPF 1/7 Disposed 322,800 ORIENTAL HOLDINGS EPF 1/7 Disposed 211,400 BERJAYA AUTO EPF 1/7 Disposed 197,200 KEPONG EPF 1/7 Disposed 168,200 SUNWAY REIT EPF 1/7 Disposed 97,500 PETRONAS GAS Skim Amanah Saham Bumiputera 30/6-1/7 Disposed 1,790,300 UMW HOLDINGS Skim Amanah Saham Bumiputera 30/6-1/7 Disposed 1,679,200 TENAGA NASIONAL Lembaga Tabung Haji 30/6-1/7 Disposed 500,000 BIMB HOLDINGS Utilico Emerging Markets Limited 2/7 Disposed 2,000,000 MY E.G. SERVICES Edisi Firma Sdn Bhd 1/7-2/7 Disposed 2,400,000 MY E.G. SERVICES BIMB HOLDINGS BERHAD 3/7 Disposed 5,000 SYARIKAT TAKAFUL MALAYSIA Aberdeen Asset Management PLC 2/7 Disposed 3,100 BAT Mitsubishi UFJ Financial Group, Inc 30/6 Disposed 97,000 AEON CO. (M) EPF 30/6-1/7 Acquired 5,662,300 TELEKOM MALAYSIA EPF 1/7 Acquired 1,979,400 MALAYAN BANKING EPF 1/7 Acquired 1,500,000 PERISAI PETROLEUM EPF 1/7 Acquired 1,056,000 SP SETIA EPF 1/7 Acquired 804,800 AFG EPF 1/7 Acquired 731,500 GAMUDA EPF 1/7 Acquired 555,400 AMMB HOLDINGS EPF 1/7 Acquired 500,000 IJM CORPORATION EPF 1/7 Acquired 500,000 TOP GLOVE EPF 1/7 Acquired 500,000 YTL POWER INTERNATIONAL EPF 1/7 Acquired 379,000 IOI CORPORATION EPF 1/7 Acquired 295,900 DIALOG GROUP EPF 1/7 Acquired 283,400 KPJ HEALTHCARE EPF 30/6 Acquired 250,900 CAHYA MATA SARAWAK EPF 1/7 Acquired 142,000 PRESTARIANG EPF 1/7 Acquired 101,700 PETRONAS DAGANGAN EPF 1/7 Acquired 100,300 HONG LEONG BANK EPF 1/7 Acquired 99,300 GENTING PLANTATIONS EPF 1/7 Acquired 30,600 PPB GROUP EPF 1/7 Acquired 13,800 TIME DOTCOM Skim Amanah Saham Bumiputera 1/7 Acquired 53,500 BIMB HOLDINGS Permodalan Nasional Berhad 1/7 Acquired 53,500 BIMB HOLDINGS Kumpulan Wang Persaraan 25/6-26/6 Acquired 24,600 IJM CORPORATION Lembaga Tabung Angkatan Tentera 30/6-1/7 Acquired 300,000 BOUSTEAD PLANTATIONS United International Enterprises Ltd 3/7 Acquired 260,000 UNITED PLANTATIONS WELLINGTON MANAGEMENT CO, LLP 1/7-2/7 Acquired 656,800 AIRASIA Mitsubishi UFJ Financial Group, Inc 30/6 Acquired 284,500 ORIENTAL HOLDINGS KPJ HEALTHCARE 4/7 Shares Buy Back 86,000 KPJ HEALTHCARE 3.55 WAH SEONG CORPORATION 4/7 Shares Buy Back 30,000 WAH SEONG CORPORATION 1.87 DAIBOCHI PLASTIC 4/7 Shares Buy Back 2,900 DAIBOCHI PLASTIC 4.39

SOURCES: BMSB

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Daybreak│Malaysia July 7, 2014

BMSB: ESOS & others 7-Jul-14 No Of New Shares Date of Listing Nature of transaction SUNWAY 40,800 07-Jul-14 Exercise of ESOS MUHIBBAH ENGINEERING 50,000 08-Jul-14 Exercise of ESOS

SOURCES: BMSB

BMSB: Off-market transactions 4-Jul-14 Vol AMEDIA 26,177,500 INARI 4,500,000 PLABS 1,000,000 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 7-Jul-14 Ann Date Entitlement Ex-date Entitlement DIALOG GROUP 6-May-14 Bonus issue 1:1, special share dividend 1:125 16-Jul-14 18-Jul-14

SOURCES: BMSB, TE: Tax Exempt

BMSB: Dividends Company Particulars Gross DPS (Sen) Ann Date Ex-Date Lodgement Payment MCIL Interim dividend - single tier 2.19 29-May-14 9-Jul-14 11-Jul-14 8-Aug-14 GAMUDA 2nd interim dividend - single tier 6.00 26-Jun-14 10-Jul-14 14-Jul-14 23-Jul-14 ORIENTAL HOLDINGS Final dividend - single tier 3.50 14-May-14 11-Jul-14 16-Jul-14 1-Aug-14 IOI CORPORATION 2nd interim dividend - single tier 12.00 1-Jul-14 14-Jul-14 17-Jul-14 25-Jul-14 FRASER & NEAVE Interim dividend - single tier 22.00 7-May-14 16-Jul-14 18-Jul-14 8-Aug-14 BINTULU PORT Special interim - single tier 6.00 28-May-14 16-Jul-14 18-Jul-14 8-Aug-14 JOBSTREET CORPORATION Final dividend - single tier 0.50 2-Jun-14 16-Jul-14 18-Jul-14 7-Aug-14 BERJAYA SPORTS TOTO 4th Interim - single tier 7.00 17-Jun-14 16-Jul-14 18-Jul-14 8-Aug-14 KUALA LUMPUR KEPONG Interim dividend - single tier 15.00 21-May-14 17-Jul-14 21-Jul-14 12-Aug-14 MUDAJAYA GROUP 2nd interim dividend - single tier 3.00 10-Jun-14 6-Aug-14 8-Aug-14 5-Sep-14 MUHIBBAH ENGINEERING 1st & final dividend - single tier 4.50 3-Jun-14 13-Aug-14 15-Aug-14 25-Aug-14

SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights… 7-Jul-14 Ann Date Proposed BONIA CORPORATION 25-Apr-14 Bonus issue 1:1, share split 1:2 ECO WORLD 25-Apr-14 1 Rights @ 2 , 4 Free Warrants @ 5, Private Placement SBC CORP 27-May-14 Bonus issue 1:2 BUMI ARMADA 12-Jun-14 Bonus issue 1:2, 1 Rights @ 2

SOURCES: BMSB

BMSB: New Listing Company Issue price No of shares Listing sought Tentative Public Issue Offer for sale Private placement listing date TANAH MAKMUR 1.25 52,140,000 49,450,000 75,184,000 Main Market 17-Jul-14 HENG HUAT RESOURCES 0.45 46,500,000 14,660,000 26,860,000 ACE Market 25-Jul-14

SOURCES: BMSB

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Corporate Actions July 2014

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 Cypark 2Q MPI's Analyst Day, External Trade

6 7 8 9 10 11 12 External Reserves IPI, BNM rate

13 14 15 16 17 18 19 Nuzul Al-Quran Tenaga 3Q & DiGi 2Q, briefing, CPI Pavilion REIT 2Q, CMMT 2Q

20 21 22 23 24 25 26 Maxis 2Q, External Reserves (mid-month data)

27 28 29 30 31 Hari Raya Puasa Hari Raya Puasa Money supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions August 2014

SUN MON TUE WED THU FRI SAT

31 1 2 National Day

3 4 5 6 7 8 9 External Trade External Reserve (month-end data)

10 11 12 13 14 15 16 IPI GDP, BoP Current Account Balance

17 18 19 20 21 22 23 CPI External Reserves (mid-month data)

24 25 26 27 28 29 30 Money supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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As at the time of publishing this report CIMB is phasing in an absolute recommendation structure for stocks (Framework #1). Please refer to all frameworks for a definition of any recommendations stated in this report.

CIMB Recommendation Framework #1 Stock Ratings Definition Add The stock’s total return is expected to exceed 10% over the next 12 months. Hold The stock’s total return is expected to be between 0% and positive 10% over the next 12 months. Reduce The stock’s total return is expected to fall below 0% or more over the next 12 months.

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

Sector Ratings Definition Overweight An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation. Neutral A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation. Underweight An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation.

Country Ratings Definition Overweight An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark. Neutral A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark. Underweight An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark.

CIMB Stock Recommendation Framework #2 * 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. Neutral The stock's total return is expected to be within +/-5% of a relevant benchmark's total return. 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. Trading Buy The stock's total return is expected to exceed a relevant benchmark's total return by 3% or more over the next 3 months. Trading Sell The stock's total return is expected to be below a relevant benchmark's total return by 3% or more 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)

CIMB Stock Recommendation Framework #3 ** Outperform Expected positive total returns of 10% or more over the next 12 months. Neutral Expected total returns of between -10% and +10% over the next 12 months. Underperform Expected negative total returns of 10% or more over the next 12 months. Trading Buy Expected positive total returns of 10% or more over the next 3 months. Trading Sell Expected negative total returns of 10% or more over the next 3 months.

** 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.

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Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2013. AAV – Good, ADVANC - Excellent, AMATA - Very Good, ANAN – Good, AOT - Excellent, AP - Very Good, BANPU - Excellent , BAY - Excellent , BBL - Excellent, BCH – Good, BCP - Excellent, BEC - Very Good, BGH - not available, BJC – Very Good, BH - Very Good, BIGC - Very Good, BTS - Excellent, CCET – Very Good, CENTEL – Very Good, CK - Excellent, CPALL - Very Good, CPF – Excellent, CPN - Excellent, DELTA - Very Good, DTAC - Excellent, EGCO – Excellent, GLOBAL - Good, GLOW - Very Good, GRAMMY – Excellent, HANA - Excellent, HEMRAJ - Excellent, HMPRO - Very Good, INTUCH – Excellent, ITD – Very Good, IVL - Excellent, JAS – Very Good, KAMART – not available, KBANK - Excellent, KKP – Excellent, KTB - Excellent, LH - Very Good, LPN - Excellent, MAJOR – Very Good, MAKRO – Very Good, MCOT - Excellent, MINT - Excellent, 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 – Very Good, SPALI - Excellent, STA - Good, STEC - Very Good, TCAP - Excellent, THAI - Excellent, THCOM – Excellent, TICON – Very Good, TISCO - Excellent, TMB - Excellent, TOP - Excellent, TRUE - Excellent, TTW – Excellent, TUF - Very Good, VGI – Excellent, WORK – Good.

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