TA Securities Monday, December 19, 2016 FBMKLCI: 1, 637.79 A Member of the TA Group

MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 , MALAYSIA TEL: +603-20721277 / FAX: +603-20325048

WWeeeekkllyy SSttrraatteeggyy Market View, News In Brief: Corporate , Economy , a n d Share Buybacks

THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Kaladher Govindan Tel: +603-2167 9609 [email protected] www.taonline.com.my

Market View Modest Year-end Window Dressing Could be on the Cards The local benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) stayed range bound last week, after earlier gains evaporated as the US Federal Reserve raised interest rates by 25 basis points as expected, for the second time in nearly a decade. However, the Fed guided for three rate hikes next year instead of two as earlier expected, forcing a weaker ringgit as foreign selling persisted to dampen local sentiment.

Week-on-week, the FBM KLCI eased 3.63 points, or 0.22 percent to 1,637.79, with gains on Dagangan (+30sen), Hap Seng Consolidated (+21sen) and Public Bank (+18sen) overshadowed by losses on BAT (-RM1.54), Petronas Gas (-48sen), Hong Leong Financial Group (-40sen) and PPB Group (-22sen). Average daily traded volume and value last week mildly improved to 1.32 billion shares and RM1.66 billion, compared to the 1.12 billion shares and RM1.45 billion the previous week.

So, as widely expected, the US interest rate went up by 25 basis points last week but the market was taken aback by the US Federal Reserve’s more hawkish stance now. It has indicated three interest rate increases for next year, versus two previously, which are still below the consensus expectations of four hikes under the worst-case scenario. Whether these speculations will come true or not are highly dependent on the new US president- elect’s fiscal policy moves and steadfastness in implementing some of those controversial election promises after assuming his new post next year. Thus, the Fed is expected to stay pat from further tightening in next January but may react in March if the economic conditions warrant.

An aggressive tightening will deal a severe blow to the emerging market currencies, especially if China loses the battle in defending its currency after wasting about US1 trillion of its foreign reserves in defending the yuan in the last one year. It has imposed various measures in the last one month to curb outflows and some of these measures include limiting the amount of renminbi individuals and corporations can remit outside the country and imposing a maximum limit on different type of investments by China corporations overseas, which may have implications on their amount and timing of investments into Malaysia as well.

If the US, under the new premiership, sticks to its offensive strategy of labelling China as currency manipulator and slapping a 45% import tariff on China, yuan’s fall will have dramatic impact on other regional currencies, including Ringgit with a high foreign shareholding of 48.4% or RM173 billion in the Malaysian Government Securities as at end- November 2016 after a net outflow of RM11.5 billion during the month. A row between the US and China last week over a US underwater drone that was seized by China in international waters near Scarborough Shoal could escalate the prevailing tension among the two world’s largest economies. That aside, the impending release of US economic data this week like the PMI, final reading of 3Q16 GDP, core PCE, new home sales, etc. are expected to indicate sustained improvement, which will support the Fed’s recent tightening action.

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TA Securities A Member of the TA Group 19-Dec-16

Thus, these uncertainties could limit near-term upside for FBMKLCI from any window dressing activities as continued foreign selling pressure could undermine even the most undervalued blue chips. However, investors should look to accumulate on weakness some of these fundamentally undervalued stocks such as (TP: RM5.35) (foreign shareholding estimated to be around 11% vs. 29% in August 2012), CIMB (TP: RM5.60) (estimated at 27% vs. 43% in June 2011) and TM (TP: RM7.95) (estimated at 13% vs. 24% in July 2014) as their foreign shareholding levels have dwindled significantly from their peaks in the last five years. Axiata is expected to see some recoveries at Celcom and its Indonesian operations next year and will be a net beneficiary of a weaker ringgit as circa 70% of its revenue and EBITDA originate from overseas. CIMB should reap the benefit from its cost saving initiatives and recovery in its Indonesian operation. Telekom holds a dominant position in fixed broadband and could unlock the latent demand through the rollout of HSBB2 and SUBB. The launch of webe completes the quad play offering and could steal away market share from the incumbent mobile players.

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News In Brief Corporate Berhad (Sime Darby) has issued and allotted 157.4mn new Sime Darby Shares pursuant to the 4th DRP. The new shares were listed and quoted on the Main Market of Bursa Malaysia Securities Berhad last week. With the listing of the new shares, the enlarged issued and paid-up share capital of Sime Darby is RM3.4bn comprising 6.8bn of Sime Darby Shares . (Bursa Malaysia) Comment: To recap, Sime Darby has requested to issue 241.8mn new shares with an approved issue price of RM7.55/share based on 5-day volume weighted average market price in November 2016. This would provide Sime Darby with approximately RM1.8bn of gross proceeds. We maintain our neutral view on this as the issuance will dilute the EPS by around 1% to 31.8sen for FY17 but reduce net gearing to 0.26x from 0.35x. Note that 65% of the shares were issued and allotted. No change in our earnings forecast and maintain Sell with a target price of RM7.45.

Serba Dinamik Holdings Bhd, an engineering solutions provider in the oil and gas (O&G) and power sectors, has received approval to list. It is said to be looking to raise more than RM600mn. Serba Dinamik’s core activity is providing engineering solutions to the O&G and power-generation industries with operational facilities in Malaysia, Indonesia, the United Arab Emirates, Bahrain and the United Kingdom. When contacted, Serba Dinamik group chief executive officer Datuk Dr M.A. Karim Abdullah says the company is hoping to list on Bursa Malaysia by February next year with a market capitalisation of RM2bn. (The Star)

The US$600mn (RM2.7bn) capital injection into Axiata Group Bhd’s wholly-owned subsidiary, edotco Group Sdn Bhd, can be seen as a strategic move that will help to boost the latter’s growth potential within the regional telecommunications tower services industry. At a briefing on the company’s plans moving forward, Edotco chief executive officer Suresh Sidhu emphasised there are opportunities aplenty within the region. (The Star)

Tenaga Nasional Bhd (TNB) could potentially see a change in investor profile, moving forward, after it decided that it is time to power up returns for shareholders and turn up the volume for growth from overseas. Risk-seeking investors could soon count TNB as part of their portfolio as the utility group, which is not usually known for growth but rather stable returns, embarks on a new 10-year plan to boost growth from overseas ventures. The utility group says earlier in the week that it will put more focus on overseas business opportunities, moving forward, as it targets to derive 20% of its earnings from overseas by 2025. (The Star)

AirAsia Bhd has injected US$227mn (RM1.01bn) into its associate PT Indonesia AirAsia (IAA) to address the latter’s negative equity position. The low-cost carrier said its board had approved the subscription of the US$227mn or 3.042 trillion nominal value of perpetual capital securities issued by its 49% owned Indonesian operations. AirAsia had, last week, entered into a perpetual security purchase agreement with IAA to formalise the issuance and terms and conditions between IAA and AirAsia for the subscription. (The Star)

Malayan Banking Bhd () expects its newly-launched Maybank Samsung Pay in Malaysia to boost the number of customers using contactless payments. This follows the success of the Maybank Pay launch in Malaysia in July which has seen nearly 40,000 installations of the digital wallet. Maybank group chief strategy officer Michael Foong said the bank was optimistic that more cardholders would subscribe to Maybank Samsung Pay which is the most widely-accepted contactless mobile payment service. It can be used for debit, credit and prepaid cards in numerous overseas locations too. (The Star)

Naza Kia Malaysia aims to sell 6,000 units of Kia models in 2017. Naza Corp Holdings (Automotive Group) chief operating officer Datuk Samson Anand George said the new models of Kia cars to be introduced next year would help the group to achieve the 6,000 target.“ Among the models to be unveiled in 2017 are the Carnival, Rio, and Optima,” Samson said. (The Star)

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Gamuda Bhd net profit for the first quarter ended Oct 30 increased to RM162.1mn from RM161.2mn a year ago mainly supported by toll rate hikes of certain expressways. This was achieved on a lower revenue of RM504.9mn against RM512.8mn in the corresponding quarter last year, mainly due to tapering of underground and elevated works of the KVMRT Line 1. Gamuda also announced a single-tier first interim dividend of six sen per share. (The Star)

Berjaya Sports Toto Bhd (BToto) saw its net profit for the second quarter ended Oct 31 falling by 12% YoY to RM62.15mn on the back of revenue that was largely flat at RM1.45bn. The company said in its Bursa Malaysia filing that the slight rise in revenue was due to the contribution from H.R. Owen Plc as well as International Lottery & Totalizator Systems, Inc (ILTS) due to the recognition of substantial project contract sales in the current quarter under review. Dividends this time will amount to about RM53.9mn and is payable on Jan 25, 2017 with the entitlement date fixed on Jan 9, 2017. (The Star)

Puncak Niaga Holdings Bhd is buying over the business of construction firm TRIplc Bhd for RM210mn to enhance its construction segment's revenue and long-term growth prospects. TRIplc, according to Puncak Niaga's bourse filing announcing the proposed acquisition today, holds two concessions awarded by the government and Universiti Teknologi MARA (UiTM). (The Edge)

United Malacca Bhd's (UMB) pre-tax profit for the second quarter ended Oct 31, 2016 jumped 67% to RM25.7mn from RM15.4mn in the same quarter last year. Revenue rose to RM74.44mn from RM49.86mn previously, it said in a filing to Bursa Malaysia today. UMB said the remarkable performance was due to the positive plantation business profit from the operations in Malaysia and Indonesia. (Bernama)

HeiTech Padu Berhad announced that Duta Technic Sdn Bhd (DTSB) (a subsidiary of HeiTech Padu Berhad) has on 6th December 2016 received a Letter of Acceptance for the Appointment of Duta Technic Sdn Bhd by Berhad for Mainhead B : Proposed 132kV Single Circuit Loop In/Out Into PMU Tunjung From Kota Bharu – Tanah Merah Transmission Line. Duration of the contract is for 364 days and remedy any defects or damage within the defects notification period of 12 month from the day of handing over of the project to TNB. The Contract Value of the project is RM2.3mn. (Bursa Malaysia)

Lebuhraya Borneo Utara Sdn Bhd (LBU) has awarded all the 11 work packages under phase one of the Pan Borneo Highway project on Sarawak’s side for a total sum of RM16.49bn. According to LBU, 11 listed companies from Sarawak and were among 20 firms that secured construction work contracts for this single biggest and most ambitious infrastructure project for both Sarawak and Sabah. (The Star)

Teo Guan Lee Bhd will spend about RM30mn to expand its range of stocks next year. Group managing director Toh Kian Beng told StarBiz that the funds were available in trust receipts and bankers’ acceptance facilities, which the group had yet to utilise. “We plan to improve the baby apparel stocks to tap the baby market, which is a growing segment. The baby segment currently generates about 20% of group revenue,” Toh said. Toh said the group expected the second half of the 2017 financial year ending next June 30 to improve over the first half. (The Star)

Felcra Niaga Sdn Bhd, a subsidiary of Felcra Bhd , can generate an additional RM280mn in sales annually if it venture into the supply of products for the management of plantations owned by cooperatives. Chairman Datuk Abdul Fattah Abdullah said about 1,300 cooperatives were involved in the management of about 100,000 ha oil palm plantations nationwide. “Felcra Niaga can supply these cooperatives quality and competitively priced products like fertilisers and pesticides. (The Star)

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News In Brief Economy A s i a Malaysia -China Trade Hits RM191.65bn in January -October 201 6 Bilateral trade between Malaysia and China from January to October 2016 hit RM191.65bn, up 1.2% from the same period last year. For the same period, exports fell 7.2% year-on- year to RM77.40bn while imports rose 7.9% to RM114.25bn, said the Malaysia External Trade Development Corporation (MATRADE) in a statement. Electrical and electronics products contributed 42.7% to the total exports, worth RM43.22bn, followed by chemicals and chemical products (10.4%), petroleum products (10.2%), and palm-based products (6%) and manufactures of metal (4.5%). For the first 10 months of the year, the trade deficit widened to RM36.84bn from RM22.51bn in the same period last year. (The Star)

Singapore NODX Grows Unexpectedly In November Singapore's non-oil domestic exports (NODX) rose markedly in November, defying economists' expectations for a decrease, data from the International Enterprise Singapore showed. NODX surged 11.5% year-over-year in November, reversing a 12.0% sharp decline in the previous month. Meanwhile, it was forecast to fall by 2.7%. Exports of electronic products grew 3.5% annually in November, in contrast to a 1.5% decline expected by economists. In October, exports had fallen 6.0%. The increase in electronic domestic exports was largely due to ICs, parts of PCs & disk media products. Similarly, shipments of non-electronic products expanded 15.3%, following a 14.6% decrease in the preceding month. Month-on-month, NODX climbed 13.1% from October, when it slid by 3.6 percent. (RTT News)

Japanese Firms Record 62% Rise in Profits but Staff Wages Up Only 2% Japanese workers put up with long hours and unpaid overtime under pressure from cost- saving companies, and figures from government, which wants more money in workers' pockets to boost consumer spending, appear to underestimate the problem. Prime Minister Shinzo Abe is trying to enact labour reforms as part of his "Abenomics" plan to end decades of stagnant growth and deflation. His proposals include measures to cut working hours and limit overtime, raise wages for temporary workers and make things easier for employees with children. By law, both management and rank-and-file employees should get paid for extra work, but companies have been discouraging overtime claims for so long that employees accept it as normal. Government data shows that Japanese work an average of 14.2 hours of overtime a month, but 2,000 respondents in a recent survey by the Japanese Trade Union Confederation said they worked an average of 40.3 hours of overtime a month, and get paid for just 22.7. "Workers often face pressure from their superiors, sometimes in subtle, unspoken ways, to claim less overtime hours than actually worked," said Toshiaki Matsumoto, chief executive of HR Strategy, a human resources consultancy. (The Star Online)

U.S. U.S. Home Construction Lags Behind Broad Economic Rebound U.S. unemployment is hovering near the lowest level in a decade, jobless claims have reached a 43-year low and home prices have surged to records. But in this eighth year of economic expansion, the number of single-family homes under construction remains at recessionary levels. Housing starts dropped 18.7% in November to a seasonally adjusted annual rate of 1.090 million, the Commerce Department said. Permits, an indication of how much construction is in the pipeline, were down a milder 4.7% to 1.201 million. Monthly housing figures are choppy, but the broader trend has been one of slow growth. New single- family home construction has more than doubled to a rate of 828,000 homes in November after bottoming at 353,000 in early 2009, but overall activity remains muted. Adjusting for population growth, single-family construction is barely back to the prior troughs of recessions in 1981 and 1991, according to research from mortgage giant Fannie Mae. Even October’s monthly readings, which showed single-family starts at the highest level in nine years, were more than 15% below long-run averages. Sparse construction of new houses remains one of the enduring legacies of the housing bust and is one of the biggest

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impediments to achieving a more balanced recovery, economists said. Single -family housing starts in November, which have accounted for about two-thirds of all residential building activity since the recession ended, slid 4.1% to 828,000. They peaked at more than 1.82 million in 2006, the height of the housing bubble. (The Wall Street Journal)

U.K. British Manufacturers Increase Pace Of Production: CBI British manufacturers increased their pace of production as total orders hit 20-month high, the Industrial Trends Survey from the Confederation of British Industry showed. Growth in output was the highest since mid-2014 and was broad-based, the survey revealed. About 35% of businesses reported a rise in output volumes, and 16% a fall, giving a balance of +19%, the highest since July 2014. Output growth is expected to remain elevated over the next three months, with 34 percent of companies expecting a rise and 13% expecting a fall, leaving a balance of +21%. The total order balance rose to zero percent in December, which was the highest since April 2015, and better than the expected level of -5%. A balance of - 15% said export orders declined at the end of the year. But the weakness of sterling is pushing up the cost of imports, and our survey shows strong signs of this feeding through to higher factory gate prices. A balance of 26% expects average prices to rise over the next quarter, the highest since June 2011. (RTT News)

Europe Eurozone Inflation Accelerates as Estimated Eurozone Inflation rose to 0.6% in November, in line with flash estimate, from 0.5% in October. This was the highest since April 2014. In November 2015, inflation was 0.1%. Nonetheless, headline inflation has been below the European Central Bank's target of 'below, but close to 2% since early 2013. Core inflation that excludes energy, food, alcohol and tobacco, held steady at 0.8% in November. The annual rate matched the estimate published on November 30. Month-on-month, consumer prices dropped 0.1% in November. Inflation in the European Union also edged up to 0.6 percent in November from 0.5% in October.

Separately, the seasonally adjusted trade surplus shrank to EUR 19.7 billion in October from EUR 24.4 billion in September, which was revised down from EUR 24.5 billion reported earlier. Economists had expected a surplus of EUR 24.5 billion for October. The latest surplus was the lowest since February, when it totaled the same. Exports dropped 0.3% over the month, while imports grew by 2.9%. On a non-seasonally adjusted basis, the trade surplus fell to EUR 20.1 billion in October from EUR 23.2 billion in the same month of 2015. Both exports and imports slid by 5.0% and 3.0%, respectively in October from a year ago. (RTT News)

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Share Buy-Back: 16 Dec 2016 Total Treasury Company Bought Back Price (RM) Hi/Lo (RM) Shares BJFOOD 55,000 1.60/1.58 1.60/1.58 4,236,700 DAIBOCI 4,000 2.26/2.25 2.26/2.22 1,102,700 E&O 198 1.44/1.42 1.44/1.42 5,113,660 GRANFLO 70,000 0.185/0.18 0.185/0.18 5,713,800 IOIPG 1,500,000 2.00 2.02/1.98 17,110,400 LIONIND 60,000 0.41 0.405/0.395 33,014,400 NPC 507,500 2.35 2.35 1,329,400 P&O 2,000 1.30 1.30/1.29 9,232,100 SEM 300,000 1.53/1.52 1.54/1.51 121,800,000 SIGN 30,000 0.81/0.805 0.815/0.805 5,576,200 SUNWAY 421,100 3.04/3.03 3.04/3.00 36,397,800 TEXCHEM 1,000 1.60/1.59 1.60/1.57 2,392,900 UNIMECH 52,000 1.09/1.08 1.09/1.08 4,159,010 YINSON 62,000 2.85/2.84 2.89/2.84 4,597,200 Source: Bursa Malaysia

TA RESEARCH – Remisiers’ Briefing

Topic: Weekly Market Outlook Speaker: Kaladher/ Stephen Soo/Tan Kam Meng Venue : Auditorium, 10 th Floor Menara TA One Date : 19 December, 2016 (Today) Time : 12.40 PM

Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not gu aranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. for TA S ECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research

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For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE

Company Share Price Target Price EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg BETA (RM) (RM) FY17 FY18 FY17 FY18 FY17 FY18 High Price % Chg Low Price % Chg YTD 16-Dec-16 AUTOMOBILE BAUTO 2.10 2.18 1.00 13.2 17.1 15.9 12.3 6.3 8.1 2.44 -13.9 1.79 17.4 1.5 MBMR 2.18 2.20 0.72 24.5 25.3 8.9 8.6 2.8 2.8 2.70 -19.3 1.94 12.4 -9.2 UMW 4.84 4.05 1.15 12.4 18.9 39.0 25.6 1.7 2.5 7.94 -39.0 4.75 1.9 -38.5

BANKS & FINANCIAL SERVICES AFG 3.75 3.70 1.20 35.8 37.7 10.5 9.9 4.0 4.0 4.37 -14.2 3.07 22.1 5.3 AFFIN 2.35 2.60 0.86 24.7 26.1 9.5 9.0 3.4 3.4 2.38 -1.3 2.08 13.0 0.4 AMBANK 4.44 4.50 1.24 46.4 50.6 9.6 8.8 3.6 4.1 4.76 -6.7 3.90 13.8 -2.0 CIMB 4.60 5.60 1.18 50.0 52.3 9.2 8.8 4.5 4.7 5.10 -9.8 3.89 18.4 2.5 HLBANK 13.22 13.00 0.65 101.3 109.8 13.1 12.0 3.1 3.1 13.80 -4.2 12.70 4.1 -1.6 MAYBANK 7.94 8.00 0.96 72.8 82.3 10.9 9.6 6.0 6.5 9.20 -13.7 7.50 5.9 -5.5 PBBANK 19.80 20.30 0.87 134.2 142.0 14.8 13.9 2.8 2.8 20.10 -1.5 17.76 11.5 6.9 RHBBANK 4.82 5.00 1.14 52.6 56.4 9.2 8.5 2.5 2.5 5.18 -6.9 3.85 25.1 10.5 BURSA 8.84 9.30 0.67 41.7 46.0 21.2 19.2 3.9 3.9 9.43 -6.3 8.06 9.7 5.9

CONSTRUCTION BPURI 0.41 0.44 0.91 6.2 5.6 6.6 7.4 0.0 4.9 0.51 -19.6 0.36 13.9 -4.7 GADANG 0.98 1.37 0.74 12.9 13.6 7.6 7.2 2.9 2.9 1.35 -27.5 0.75 31.0 15.6 GAMUDA 4.81 5.62 0.97 33.0 36.7 14.6 13.1 2.5 2.5 5.00 -3.8 4.35 10.6 3.2 IJM 3.25 3.23 0.99 16.9 20.8 19.3 15.7 2.9 2.9 3.61 -9.9 3.07 5.9 -3.0 SENDAI 0.56 0.60 1.10 9.9 9.3 5.6 6.0 1.8 1.8 0.81 -31.1 0.41 37.0 -27.5 SUNCON 1.67 1.85 na 12.3 12.4 13.6 13.4 3.3 3.3 1.74 -4.0 1.30 28.5 19.3 WCT 1.79 1.54 0.98 13.1 12.5 13.6 14.4 1.7 1.7 1.98 -9.6 1.41 27.0 11.2 LITRAK 5.83 5.58 0.19 47.7 48.1 12.2 12.1 4.3 4.3 6.06 -3.8 4.90 19.0 16.6 Building Materials WTHORSE 2.07 2.07 0.50 20.7 21.3 10.0 9.7 4.8 4.8 2.40 -13.8 1.93 7.3 -9.6

CONSUMER Brewery CARLSBG 13.90 15.52 0.56 76.9 83.6 18.1 16.6 5.5 6.0 15.20 -8.6 11.46 21.3 18.8 HEIM 16.90 19.73 0.56 90.1 95.0 18.8 17.8 4.8 5.1 18.74 -9.8 12.63 33.8 30.4 Retail AEON 2.61 2.23 0.60 6.5 7.5 40.2 34.6 0.7 0.9 3.00 -13.0 2.47 5.7 -4.4 AMWAY 7.46 8.00 0.41 35.3 38.3 21.1 19.5 3.8 4.0 9.70 -23.1 7.40 0.8 -20.4 F&N 23.00 21.71 0.40 98.5 115.9 23.4 19.8 2.6 3.0 27.00 -14.8 18.08 27.2 24.3 NESTLE 78.40 88.16 0.42 343.1 358.4 22.8 21.9 3.9 4.1 81.80 -4.2 72.30 8.4 7.1 PADINI 2.60 4.00 0.52 23.5 26.5 11.1 9.8 5.8 6.9 3.08 -15.6 1.79 45.4 39.9 POHUAT 1.61 2.08 0.68 22.9 22.9 7.0 7.0 5.0 5.0 2.12 -24.1 1.41 14.2 -21.5 QL 4.33 4.71 0.56 19.0 21.1 22.8 20.5 1.2 1.3 4.65 -6.9 4.15 4.3 0.9 SIGN 0.81 1.26 0.66 11.9 13.3 6.7 6.1 6.2 6.2 1.07 -24.6 0.72 11.7 -4.1 Tobacco BAT 43.26 56.00 0.94 278.0 288.8 15.6 15.0 6.2 6.5 58.40 -25.9 40.70 6.3 -22.9

GAMING Casino GENTING 7.94 9.25 1.31 43.9 50.5 18.1 15.7 0.6 0.7 9.90 -19.8 6.96 14.1 8.2 GENM 4.70 5.66 1.15 25.7 27.9 18.3 16.9 1.7 1.9 4.97 -5.4 4.05 16.0 7.3 NFO BJTOTO 3.06 4.01 0.74 24.5 24.7 12.5 12.4 6.2 7.0 3.47 -11.8 2.88 6.2 0.3 LUSTER 0.05 0.10 0.79 0.2 0.3 25.3 16.6 0.0 0.0 0.09 -41.2 0.05 0.0 -37.5

HEALTHCARE Hospitals IHH 6.38 6.50 0.85 14.4 18.3 44.2 34.9 0.6 0.7 6.79 -6.0 6.15 3.7 -3.0 KPJ 4.12 4.75 0.55 15.5 18.0 26.5 22.9 1.5 1.8 4.40 -6.4 4.06 1.5 -2.4 Rubber Gloves HARTA 4.76 3.95 0.52 16.5 20.9 28.8 22.8 1.6 2.0 6.12 -22.2 3.81 24.9 -19.9 KOSSAN 6.44 7.40 0.18 39.0 49.3 16.5 13.1 3.0 3.8 9.50 -32.2 5.90 9.2 -30.8 SUPERMX 2.09 2.15 0.63 17.5 21.8 11.9 9.6 2.5 3.1 3.56 -41.3 2.01 4.0 -35.5 TOPGLOV 5.12 4.90 -0.14 25.6 30.0 20.0 17.1 2.5 2.9 7.03 -27.2 4.20 21.9 -24.4 KAREX 2.47 2.85 0.43 7.3 11.7 33.8 21.1 0.7 1.2 3.16 -21.8 2.13 16.0 -10.3

INDUSTRIAL SCIENTX 6.77 8.50 0.50 67.9 78.0 10.0 8.7 3.0 3.4 7.08 -4.4 4.71 43.7 38.9 SKPRES 1.29 1.75 0.68 9.4 14.5 13.8 8.9 3.4 5.3 1.44 -10.4 1.12 15.2 -1.5

MEDIA ASTRO 2.73 3.30 1.04 12.7 14.7 21.5 18.5 4.6 4.8 3.02 -9.6 2.41 13.3 -1.1 MEDIA PRIMA 1.04 1.00 0.74 9.1 10.3 11.4 10.1 7.0 7.9 1.54 -32.5 1.03 1.0 -18.1 STAR 2.23 1.95 0.53 15.1 16.0 14.8 14.0 8.1 8.1 2.70 -17.4 2.21 0.9 -4.7

OIL & GAS EATECH 0.55 0.44 na 11.2 13.4 4.9 4.1 6.1 7.3 1.25 -56.0 0.45 23.6 -50.5 MHB 0.87 1.03 1.78 2.0 3.8 43.3 22.7 0.0 0.0 1.34 -35.4 0.84 3.0 -13.5 MISC 7.36 7.68 0.90 58.3 67.7 12.6 10.9 4.1 4.1 9.40 -21.7 6.88 7.0 -21.5 PANTECH 0.56 0.63 1.11 5.7 7.3 9.8 7.6 4.1 5.3 0.52 -11.0 0.44 5.7 -9.6 Note: PANTECH proposed bonus issue shares & warrants. For more detail please refer to 10.10.16 report. PCHEM 6.85 7.75 1.26 34.5 39.1 19.8 17.5 2.8 3.2 7.62 -10.1 5.95 15.1 -5.8 SKPETRO 1.63 1.71 2.37 4.9 4.3 33.4 37.5 0.0 0.0 2.18 -25.2 1.29 26.4 -19.3 UMWOG 0.76 0.55 1.94 -14.7 -11.0 na na 0.0 0.0 1.17 -35.5 0.72 4.9 -29.4 UZMA 1.43 1.34 1.78 11.9 12.7 12.0 11.2 0.0 0.0 2.04 -29.9 1.30 10.0 -28.5

For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE

Company Share Price Target Price EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg BETA (RM) (RM) FY17 FY18 FY17 FY18 FY17 FY18 High Price % Chg Low Price % Chg YTD

PLANTATIONS FGV 1.68 1.53 1.37 6.8 11.5 24.8 14.7 3.0 3.0 2.52 -33.3 1.31 28.2 -1.8 IJMPLNT 3.30 3.50 0.64 13.7 15.7 24.1 21.0 2.1 2.4 3.80 -13.2 3.22 2.5 -7.0 IOICORP 4.43 3.66 1.07 18.7 21.1 23.6 21.0 2.3 2.7 5.04 -12.1 4.07 8.8 -0.7 KLK 23.86 21.12 1.00 108.2 117.7 22.0 20.3 2.2 2.4 25.00 -4.6 22.20 7.5 4.3 SIME 8.09 7.45 1.17 31.5 36.2 25.7 22.4 2.7 3.5 8.33 -2.9 7.00 15.6 4.4 UMCCA 5.69 6.54 0.47 25.5 31.1 22.3 18.3 2.8 2.8 6.21 -8.4 5.53 2.9 -6.1

PROPERTY GLOMAC 0.72 0.68 0.57 5.5 8.0 13.1 9.0 8.3 5.6 0.89 -19.1 0.69 4.3 -17.2 HUAYANG 1.05 1.29 0.62 25.2 20.3 4.2 5.2 3.8 3.8 1.45 -27.5 1.05 0.0 -24.3 IOIPG 2.00 2.16 0.93 13.3 14.9 15.0 13.4 3.5 4.0 2.65 -24.5 1.99 0.5 -11.1 Note: IOIPG proposed 1 for 4 rights issue share, at an issue price of RM1.38 per rights share. Ex-Target price RM1.98. For more detail please refer to 21.11.16 MAHSING 1.51 1.60 0.63 14.5 12.5 10.4 12.1 4.0 3.6 1.70 -11.2 1.24 21.8 4.1 SNTORIA 0.75 0.84 0.38 9.1 14.6 8.2 5.1 2.7 2.7 0.95 -20.6 0.71 5.6 -19.4 SPSETIA 3.29 3.45 0.67 26.6 23.9 12.4 13.8 4.1 4.0 3.59 -8.4 2.80 17.5 2.8 SUNWAY 3.04 3.26 0.47 28.4 34.0 10.7 8.9 3.6 3.6 3.24 -6.2 2.87 5.9 -1.3 REIT SUNREIT 1.68 1.78 0.51 8.9 9.9 18.9 17.0 5.3 5.9 1.84 -8.7 1.43 17.5 15.1 CMMT 1.53 1.81 0.72 8.7 9.1 17.6 16.8 5.7 5.9 1.61 -5.0 1.35 13.3 10.9

POWER & UTILITIES MALAKOF 1.40 1.70 na 9.0 8.4 15.6 16.7 4.5 4.2 1.80 -22.2 1.26 11.1 -12.5 PETDAG 23.70 18.51 0.92 90.2 92.5 26.3 25.6 2.7 2.7 26.30 -9.9 22.16 6.9 -4.7 PETGAS 21.16 19.67 0.83 88.9 92.4 23.8 22.9 2.7 2.8 23.24 -9.0 20.54 3.0 -6.8 TENAGA 13.76 16.87 1.07 129.1 132.7 10.7 10.4 2.5 2.6 14.90 -7.7 12.60 9.2 3.3 YTLPOWR 1.42 1.84 0.62 9.1 11.2 15.6 12.6 7.0 7.0 1.64 -13.4 1.38 2.9 -4.1

TELECOMMUNICATIONS AXIATA 4.68 5.35 1.10 20.7 24.0 22.6 19.5 3.6 4.2 6.48 -27.8 4.11 13.9 -27.0 DIGI 4.96 4.95 0.99 21.2 21.5 23.4 23.1 4.3 4.3 5.49 -9.7 4.31 15.1 -8.1 MAXIS 6.00 5.80 0.70 24.7 25.7 24.3 23.3 3.3 3.3 6.89 -12.9 5.36 11.9 -11.8 TM 5.95 7.95 0.71 25.2 27.6 23.7 21.6 3.8 4.2 6.90 -13.8 5.89 1.0 -12.2

TECHNOLOGY Semiconductor & Electronics IRIS 0.12 0.14 0.99 -0.6 1.6 na 7.3 0.0 0.0 0.24 -50.0 0.12 0.0 -45.5 INARI 3.30 4.10 0.76 21.7 25.9 15.2 12.7 1.3 1.5 3.95 -16.5 2.57 28.7 -9.7 Note: INARI proposed bonus issue shares on the basis of 1 for 1. For more detail please refer to 24.11.16 report. MPI 7.50 9.40 0.51 88.9 101.9 8.4 7.4 3.1 3.1 10.70 -29.9 6.86 9.3 -19.4 UNISEM 2.34 2.85 0.72 27.2 29.3 8.6 8.0 5.1 5.1 2.77 -15.5 1.94 20.6 -1.7

TRANSPORTATION Airlines AIRASIA 2.50 2.79 1.21 31.0 32.8 8.1 7.6 1.6 2.0 3.30 -24.2 1.27 96.9 93.8 AIRPORT 6.25 6.64 1.45 9.2 9.5 67.7 65.7 1.4 1.4 7.30 -14.4 5.36 16.6 11.4 Freight & Tankers TNLOGIS 1.61 2.03 0.89 21.4 23.7 7.5 6.8 3.4 4.3 1.76 -8.5 1.13 42.5 17.5 WPRTS 4.29 4.82 0.65 19.3 20.2 22.2 21.2 3.4 3.5 4.59 -6.5 3.62 18.5 4.1

SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE

Company Share Price Target Price EPS (cent) PER (X) Div Yield (%) 52week 52week % Chg Beta (S$) (S$) FY17 FY18 FY17 FY18 FY17 FY18 High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 18.03 16.90 1.18 187.0 206.2 9.6 8.7 3.3 3.3 18.4 -2.0 13.01 38.6 8.0 OCBC 9.18 8.50 1.11 87.7 90.6 10.5 10.1 5.7 6.7 9.5 -2.9 8.84 23.9 4.3 UOB 20.93 19.60 1.09 200.8 219.8 10.4 9.5 3.3 3.3 21.4 -2.0 16.80 24.6 6.7

PLANTATIONS WILMAR 3.70 3.45 0.92 28.3 29.8 13.1 12.4 2.2 2.2 3.8 -1.3 2.61 41.8 25.9 IFAR 0.56 0.48 1.15 3.9 4.1 14.2 13.4 0.7 0.7 0.6 -11.2 0.41 35.4 13.3

BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.