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February 21, 2016
Malaysia Property NEGATIVE [Unchanged]
Mixed outlook for Penang
NEGATIVE on property, POSITIVE on construction Analysts While Penang properties are set to gain from the infrastructure boom Wong Wei Sum, CFA over the longer term, indicators are pointing towards challenges (603) 2297 8679 continuing in the short term. Property demand will continue to moderate [email protected] on slower economic momentum, cautious bank lending and high volume
of new properties come on stream. We prefer the construction sector for Chai Li Shin, CFA now as it will be the major immediate beneficiary from the infra works. (603) 2297 8684 [email protected] Short term property outlook remains weak The latest statistics and findings from our recent Penang site visits reveal RealEstate that the property market outlook will remain challenging in the short term. Developers remain cautious and are focusing on clearing their existing inventories in hand and delaying most of the launches to 2H 2016. Latest NAPIC statistics show that Penang had underperformed the
country where 3Q15 property transaction value had fallen 10.6% QoQ, -
18.4% YoY (Malaysia: -3.7% QoQ, -18.1% YoY) while price growth slowed down to +0.4% QoQ, +3.5% YoY (Malaysia: +0.7% QoQ, +5.3% YoY).
Malaysia New location for the massive land reclamation The proposed reclaimed islands (>1,000 acres) which will be used to finance the >MYR30b worth of Penang Transport Master Plan (PTMP) will be located at the south of island, vs the Middle Bank originally. One of the islands will focus on industrial while the other will cater for affordable housing, residential and commercial properties as well as the State Administrative Center. In our view, synchronized planning and control by the authority is paramount to avoid a potential supply glut in certain property segment. NAPIC statistics show that Penang’s unsold properties are on the rise especially for the high-rise segments.
No change in recommendations, sector ratings The property sector fundamentals remain weak on slower economic momentum, cautious banking lending practices and huge incoming supply of new properties. Having said that, sector rotation play may return but it is unlikely to sustain, we think. We are still NEGATIVE on the sector. As for the construction sector, it will be the major immediate beneficiary as the PTMP will generate massive construction works stretching into 2030. Works on the PTMP should start in 2018. We remain POSITIVE on the construction sector with Gamuda as our top BUY.
Stock Bloomberg Mkt cap Rating Price TP Upside P/E (x) P/B (x) Div yld (%) code (USD'm) (LC) (LC) (%) 16E 17E 16E 17E 16E 17E SP Setia SPSB MK 1,793 Buy 2.87 3.86 35 16.2 7.9 0.9 0.8 3.7 7.6 Sunway SWB MK 1,219 Hold 2.96 3.24 9 11.0 10.5 0.7 0.8 3.6 3.8 UEM Sunrise UEMS MK 1,197 Hold 1.11 1.10 (1) 12.5 17.1 0.7 0.7 2.6 1.9 Stock Bloomberg Mkt cap Rating Price TP Upside P/E (x) P/B (x) Div yld (%) Eco World ECW MK 748 Buy 1.33 1.67 26 32.0 15.2 1.0 1.0 0.4 0.9 code (USD'm) (LC) (LC) (%) 16E 17E 16E 17E 16E 17E Glomac GLMC MK 144 Hold 0.83 0.96 15 6.8 5.9 0.6 0.5 5.9 6.8
IJM Corp IJM MK 2,886 Buy 3.39 3.70 9 18.9 17.4 1.4 1.3 2.2 2.2 Gamuda GAM MK 2,597 Buy 4.54 5.65 24 16.5 15.6 1.7 1.6 2.6 2.6
Cahya Mata S. CMS MK 1,282 Buy 5.02 5.35 7 17.8 17.0 2.4 2.2 2.2 2.4
WCT Holdings WCTHG MK 462 Buy 1.61 2.30 43 14.3 13.1 0.8 0.8 3.9 3.9
Sunway Const'n SCGB MK 433 Buy 1.41 1.65 17 11.8 11.2 3.9 3.2 3.0 3.1 Hock Seng Lee HSL MK 284 Buy 1.97 2.15 9 11.6 11.2 1.5 1.4 2.3 2.3 Eversendai Corp EVSD MK 132 Buy 0.72 1.00 39 8.6 8.6 0.6 0.5 2.3 2.3 SEE PAGE 9 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS PP16832/01/2013 (031128) Kimlun KICB MK 106 Hold 1.49 1.20 (19) 12.3 11.8 1.0 0.9 2.2 2.3 Malaysia Property
Short-term property outlook remains weak
Cautious mode among the developers
Findings from our recent discussions with the Penang-based developers are generally in line with our sector views. Demand remains weak on slower economic momentum, weak buying sentiment and cautious bank lending practices. Developers are cautious and they are focusing on clearing their existing stocks and have delayed most of the new property launches to 2H16.
Latest statistics show weak demand trends
NAPIC statistics show that the property slowdown in the country is more evident in Penang, on a QoQ basis. 3Q15 property transaction value had fallen 10.6% QoQ in Penang, underperforming the country’s -3.7% QoQ and other major cities (Selangor -4%, KL -10%, Johor -5.9%). On YoY basis, however, the decline in sales was more evident in Iskandar Malaysia (-48% YoY) versus Malaysia’s -18%, Selangor’s -22%, KL’s -0.9% and Penang’s -18.4%. Product wise, properties priced above MYR500k in Penang experienced a sharper fall than those which were priced below MYR500k, with demand still tilted towards the affordable housing.
Pricing wise, Penang’s 3Q15 house price index (HPI) growth of +0.4% QoQ, +3.5% YoY had also underperformed the country and major cities such as Selangor and KL. Detached house (-1.6% QoQ) and semi-D (-2.7% QoQ) are the two products that experienced price decline in Penang during the 3Q15.
Penang: 3Q15 property transactions trended down QoQ and YoY
MYRm 25,000
20,000
15,000
10,000
5,000
0
Jul-05 Jul-10 Jul-15
Apr-09 Apr-04 Apr-14
Jan-03 Jan-08 Jan-13
Oct-06 Oct-11
Jun-03 Jun-08 Jun-13
Sep-04 Sep-09 Sep-14
Mar-02 Mar-07 Mar-12
Feb-05 Feb-10 Feb-15
Aug-02 Aug-07 Aug-12
Dec-05 Dec-10
Nov-03 Nov-08 Nov-13
May-06 May-11
Malaysia Selangor KL Johor Penang
Malaysia Selangor KL Johor Penang
QoQ -3.7% -4.0% -10.0% 5.9% -10.6% YoY -18.1% -22.0% -0.9% -47.9% -18.4%
Source: NAPIC
February 21, 2016 2
Malaysia Property
Penang: 3Q15 property transactions by property segment
MYRm
2500
2000
1500
1000
500
0
Sep-11 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-12 Sep-13 Sep-14 Sep-15
Mar-11 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-12 Mar-13 Mar-14 Mar-15
Residential Industrial Commercial Agricultural development land
Development Residential Industrial Commercial Agricultural land
QoQ -11% -20% -18% -55% -5% YoY -18% -23% -19% -68% -15%
Source: NAPIC
Penang: Sales for residential properties priced above MYR500k experienced a sharper fall than properties priced below MYR500k
MYRm
900
800
700
600
500
400
300
200
100
0
QoQ -3.1% -6.1% -7.3% -19.6% YoY -6.3% -14.1% -26.0% -19.0%
Source: NAPIC
February 21, 2016 3
Malaysia Property
Penang underperformed major cities such as KL and Selangor in term of price growth
2000 = 100 300
250
200
150
100
50
0
Jul-03 Jul-08 Jul-13
Apr-02 Apr-07 Apr-12
Jan-01 Jan-06 Jan-11
Oct-04 Oct-09 Oct-14
Jun-01 Jun-06 Jun-11
Sep-02 Sep-07 Sep-12
Mar-00 Mar-05 Mar-10 Mar-15
Feb-03 Feb-08 Feb-13
Aug-00 Aug-05 Aug-10 Aug-15
Dec-03 Dec-08 Dec-13
Nov-01 Nov-06 Nov-11
May-04 May-09 May-14
Malaysia Pulau Pinang Johor Selangor KL
Pulau Malaysia Pinang Johor Selangor KL
QoQ 0.7% 0.4% 2.2% 0.3% 1.2% YoY 5.3% 3.5% 3.0% 6.2% 5.3%
Source: NAPIC
Penang: Detached house and semi-D experienced declines in pricing in 3Q15
2000 = 100 300
250
200
150
100
50
0
Sep-13 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-14 Sep-15
Mar-01 Mar-09 Mar-00 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15
Terraced High rise Detached house Semi-D
Detached Terraced High rise house Semi-D
QoQ 0.7% 1.1% -1.6% -2.7% YoY 2.2% 5.6% 1.8% 1.3%
Source: NAPIC
February 21, 2016 4
Malaysia Property
Huge incoming supply, overhang to grow
The number of unsold residential properties in Penang is likely to trend upwards over the short term. At end 3Q15, the number of unsold residential properties increased by 15% QoQ and 62% YoY. This was due to huge new supply which jumped +12% QoQ and +24% YoY in 3Q15. We notice that most of these unsold residential properties are in the high rise property segment (47% of total unsold properties) followed by landed properties.
Penang: Unsold properties and incoming supply are on the rise
Unit Unsold unit
90,000 7000
80,000 6000 70,000 5000 60,000
50,000 4000
40,000 3000
30,000 2000 20,000 1000 10,000
0 0
Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14
Jun-07 Jun-02 Jun-03 Jun-04 Jun-05 Jun-06 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15
Feb-06 Feb-03 Feb-04 Feb-05 Feb-07 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15
Planned SS Under construction Incoming SS Unsold (RHS)
Source: NAPIC
Penang: Unsold residential properties rose 15% QoQ and 62% Penang: Incoming supply (residential) jumped by 12% QoQ YoY in 3Q15 and 24% YoY in 3Q15
(%) (%) 150% 60% 50% 100% 40%
30% 50% 20%
0% 10%
0%
Jul-06 Jul-13
Jan-03 Jan-10
Jun-02 Jun-09
Oct-11 Oct-04
Apr-08 Apr-15
Feb-07 Sep-07 Feb-14 Sep-14
Dec-05 Dec-12
Aug-03 Aug-10
Nov-08
Mar-04 Mar-11 May-12 -50% May-05
-10%
Jul-06 Jul-13
Jan-03 Jan-10
Jun-02 Jun-09
Oct-04 Oct-11
Apr-08 Apr-15
Sep-07 Feb-07 Feb-14 Sep-14
Dec-05 Dec-12
Aug-03 Aug-10
Nov-08
Mar-04 Mar-11 May-12 -20% May-05 -100% QoQ YoY QoQ YoY
Source: NAPIC Source: NAPIC
February 21, 2016 5
Malaysia Property
Penang: Most unsold residential properties are in the high- Penang: Sharp increase in the incoming supply of high rise rise segment properties and flats
Unit Unit 3,000 35,000
2,500 30,000
2,000 25,000
1,500 20,000
1,000 15,000
500 10,000
0 5,000
Jul-07 Jul-14
Apr-09
Jan-11
Oct-12 Oct-05
Jun-10
Sep-08 Sep-15
Mar-05 Mar-12
Feb-15 Feb-08
Aug-11
Dec-13 Dec-06
Nov-09 May-13 May-06 0
Landed Semi D
Jun-13 Jun-01 Jun-04 Jun-07 Jun-10
Sep-06 Sep-09 Sep-12 Sep-15
Detached Others Sep-03
Mar-02 Mar-05 Mar-08 Mar-11 Mar-14
Dec-14 Dec-02 Dec-05 Dec-08 Dec-11 Low cost flats/flats High-rise
Landed Semi D Detached Others Low cost flats/ flat High-rise
Source: NAPIC Source: NAPIC
PTMP to support Penang’s LT growth
PTMP to start work in 2018?
To ease the current traffic congestion, priorities will be given to the Bayan Lepas LRT line (from Penang Airport to Komtar) and the Pan Island Link (which directly link the 2nd Penang Bridge to Gurney Drive via tunnels and an elevated highway), we understand. Total construction costs for the LRT line and Pan Island Link are estimated at MYR13-14b, to be funded via the reclamation of >1,000 acres of land in the south of Penang island (near Bayan Lepas Free Industrial Zone). The construction works could commence in 2018 at the earliest, we understand, after the federal government’s Land Public Transport Commission and Department of Environment approve the public transportation component of the PTMP and the >1,000 acres of land reclamation respectively.
To recap, Gamuda’s 60%-onwed SRS consortium has won the Project Delivery Partner (PDP) role for the Penang Transport Master Plan (PTMP) from the Penang state government. The remaining stake in the consortium is owned by Penang companies, Ideal Property Development S/B (20%) and Loh Phoy Yen Holdings (20%). SRS was appointed to implement an alternative transport master plan which includes: 1) different public transportation components in Penang island and Seberang Perai and 2) the provision of new reclamation sites.
New site for the massive land reclamation
The proposed reclaimed islands (>1,000 acres) to finance the >MYR30b PTMP will be relocated to the south of Penang island, vs the Middle Bank originally. The reclaimed land will be owned by the state government and phase 1 of the reclamation land should be ready by 2021-2022, we estimate.
One of the islands will be focused on industrial (an extension of the existing Bayan Lepas Free Industrial Zone) while the other will cater for affordable housing, residential, commercial properties and the State Administrative Center. In our view, synchronized planning and control by the authority is paramount to avoid a potential supply glut in certain property segment.
February 21, 2016 6
Malaysia Property
Valuations and recommendations
We remain NEGATIVE on the property sector over the next 10 months from a top- down/industry outlook perspective. The sector lacks a strong short-term re- rating catalyst. Consequently, it could take a while longer to realize values. Having said that, demand on Penang properties should recover in 2017-2018 with the commencement of PTMP construction works on rising business activities and job creation. We may also see some buying interest from the mainland Chinese with the involvement of major Chinese contractors in the PTMP. SP Setia (SPSB MK; BUY; MYR3.86 TP) is our BUY pick for the property sector.
We remain POSITIVE on the construction sector. The PTMP, that is expected to start works in 2018, would sustain construction groups’ orderbooks following the mega infrastructure awards in 2016. It was initially expected that majority of the PTMP's construction cost would be paid via land development rights. However, the state government has clarified that the state will own the reclaimed land and auction the land to pay the contractors. This would alleviate concern on the PDP’s and contractors’ cash flows. In addition to its PDP role for the PTMP, Gamuda would also be the major beneficiary of the construction works. Leveraging on its experience in rail projects, it could be eyeing the Penang LRT project. Reiterate Gamuda (GAM MK; BUY; MYR5.65 TP) as our Top Buy pick for the construction sector.
February 21, 2016 7
Malaysia Property
Research Offices
REGIONAL HONG KONG / CHINA INDONESIA Surachai PRAMUALCHAROENKIT (66) 2658 6300 ext 1470 Sadiq CURRIMBHOY Howard WONG Head of Research Isnaputra ISKANDAR Head of Research [email protected] Regional Head, Research & Economics (852) 2268 0648 (62) 21 2557 1129 • Auto • Conmat • Contractor • Steel (65) 6231 5836 [email protected] [email protected] [email protected] • Oil & Gas - Regional • Strategy • Metals & Mining • Cement WONG Chew Hann, CA Suttatip PEERASUB (66) 2658 6300 ext 1430 Regional Head of Institutional Research Benjamin HO Rahmi MARINA (852) 2268 0632 [email protected] (62) 21 2557 1128 [email protected] (603) 2297 8686 [email protected] • Media • Commerce • Consumer & Auto [email protected] ONG Seng Yeow • Banking & Finance Regional Head of Retail Research Jacqueline KO, CFA Sutthichai KUMWORACHAI (65) 6231 5839 (852) 2268 0633 [email protected] Aurellia SETIABUDI (66) 2658 6300 ext 1400 [email protected] • Consumer Staples & Durables (62) 21 2953 0785 [email protected] [email protected] • Energy • Petrochem TAN Sin Mui Ka Leong LO, CFA • Property (852) 2268 0630 [email protected] Director of Research Termporn TANTIVIVAT • Consumer Discretionary & Auto Pandu ANUGRAH (65) 6231 5849 [email protected] (66) 2658 6300 ext 1520 (62) 21 2557 1137 [email protected] Mitchell KIM [email protected] ECONOMICS • Property (852) 2268 0634 [email protected] • Infra • Construction • Transport• Telcos Suhaimi ILIAS • Internet & Telcos Chief Economist Janni ASMAN Jaroonpan WATTANAWONG Osbert TANG, CFA (62) 21 2953 0784 (66) 2658 6300 ext 1404 Singapore | Malaysia (86) 21 5096 8370 (603) 2297 8682 [email protected] [email protected] [email protected] [email protected] • Cigarette • Healthcare • Retail • Transportation • Small cap Luz LORENZO • Transport & Industrials Philippines Adhi TASMIN (63) 2 849 8836 Stefan CHANG, CFA (62) 21 2557 1209 VIETNAM (852) 2268 0675 [email protected] [email protected] LE Hong Lien, ACCA [email protected] • Plantations Tim LEELAHAPHAN • Technology Head of Institutional Research (84) 8 44 555 888 x 8181 Thailand Anthony LUKMAWIJAYA [email protected] (66) 2658 6300 ext 1420 Warren LAU (62) 21 2557 1126 • Strategy • Consumer • Diversified • Utilities [email protected] (852) 2268 0644 [email protected] JUNIMAN [email protected] • Aviation • Technology – Regional THAI Quang Trung, CFA, Deputy Manager, Chief Economist, BII PHILIPPINES Institutional Research Indonesia INDIA (84) 8 44 555 888 x 8180 (62) 21 29228888 ext 29682 Luz LORENZO Head of Research [email protected] [email protected] Jigar SHAH Head of Research (63) 2 849 8836 • Real Estate • Construction • Materials (91) 22 6623 2632 [email protected] [email protected] STRATEGY • Oil & Gas • Automobile • Cement • Strategy Le Nguyen Nhat Chuyen • Utilities • Conglomerates • Telcos (84) 8 44 555 888 x 8082 Sadiq CURRIMBHOY Anubhav GUPTA [email protected] Global Strategist (91) 22 6623 2605 [email protected] Lovell SARREAL • Oil & Gas (65) 6231 5836 [email protected] (63) 2 849 8841 • Metal & Mining • Capital Goods • Property [email protected] NGUYEN Thi Ngan Tuyen, Head of Retail Research Willie CHAN (84) 8 44 555 888 x 8081 Vishal MODI • Consumer • Media • Cement Hong Kong / Regional [email protected] (91) 22 6623 2607 [email protected] (852) 2268 0631 [email protected] Rommel RODRIGO • Food & Beverage • Oil&Gas • Banking • Banking & Financials (63) 2 849 8839 MALAYSIA [email protected] Abhijeet KUNDU TRINH Thi Ngoc Diep • Conglomerates • Property • Gaming (84) 4 44 555 888 x 8208 (91) 22 6623 2628 [email protected] WONG Chew Hann, CA Head of Research • Ports/ Logistics [email protected] (603) 2297 8686 [email protected] • Consumer • Technology • Utilities • Construction • Strategy Katherine TAN Neerav DALAL (63) 2 849 8843 Desmond CH’NG, ACA [email protected] PHAM Nhat Bich (91) 22 6623 2606 [email protected] (603) 2297 8680 • Banks • Construction (84) 8 44 555 888 x 8083 [email protected] • Software Technology • Telcos [email protected] • Banking & Finance Michael BENGSON • Consumer • Manufacturing • Fishery SINGAPORE LIAW Thong Jung (63) 2 849 8840 (603) 2297 8688 [email protected] [email protected] NGUYEN Thi Sony Tra Mi Gregory YAP • Conglomerates • Oil & Gas Services- Regional (65) 6231 5848 [email protected] (84) 8 44 555 888 x 8084 [email protected] ONG Chee Ting, CA • SMID Caps Jaclyn JIMENEZ • Port operation • Pharmaceutical (603) 2297 8678 [email protected] • Technology & Manufacturing • Telcos (63) 2 849 8842 • Food & Beverage • Plantations - Regional [email protected] YEAK Chee Keong, CFA • Consumer Mohshin AZIZ (65) 6231 5842 TRUONG Quang Binh (603) 2297 8692 [email protected] [email protected] Arabelle MAGHIRANG (84) 4 44 555 888 x 8087 • Aviation - Regional • Petrochem • Offshore & Marine (63) 2 849 8838 [email protected] • Rubber plantation • Tyres and Tubes • Oil&Gas YIN Shao Yang, CPA [email protected] Derrick HENG, CFA • Banks (603) 2297 8916 [email protected] (65) 6231 5843 [email protected] • Gaming – Regional • Media • Transport • Property • REITs (Office) THAILAND TAN Chi Wei, CFA (603) 2297 8690 [email protected] Joshua TAN Maria LAPIZ Head of Institutional Research • Power • Telcos (65) 6231 5850 [email protected] Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 • REITs (Retail, Industrial) [email protected] WONG Wei Sum, CFA • Consumer • Materials • Ind. Estates (603) 2297 8679 [email protected] John CHEONG, CFA • Property (65) 6231 5845 [email protected] Sittichai DUANGRATTANACHAYA • Small & Mid Caps • Healthcare LEE Yen Ling (66) 2658 6300 ext 1393 (603) 2297 8691 [email protected] Ng Li Hiang [email protected] • Building Materials • Glove • Ports • Shipping (65) 6231 5840 [email protected] • Services Sector • Transport CHAI Li Shin, CFA • Banks Yupapan POLPORNPRASERT (603) 2297 8684 [email protected] (66) 2658 6300 ext 1394 • Plantation • Construction & Infrastructure [email protected] Ivan YAP • Oil & Gas (603) 2297 8612 [email protected] • Automotive • Semiconductor • Technology Tanawat RUENBANTERNG (66) 2658 6300 ext 1395 Kevin WONG [email protected] (603) 2082 6824 [email protected] • Banks & Diversified Financials • REITs • Consumer Discretionary LIEW Wei Han Sukit UDOMSIRIKUL Head of Retail Research (603) 2297 8676 [email protected] (66) 2658 6300 ext 5090 • Consumer Staples [email protected] LEE Cheng Hooi Regional Chartist Mayuree CHOWVIKRAN (603) 2297 8694 (66) 2658 6300 ext 1440 [email protected] [email protected] Tee Sze Chiah Head of Retail Research • Strategy (603) 2297 6858 [email protected] Padon VANNARAT Cheah Chong Ling (66) 2658 6300 ext 1450 (603) 2297 8767 [email protected] [email protected] • Strategy
February 21, 2016 8
Malaysia Property
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Malaysia Property
DISCLOSURES Legal Entities Disclosures Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim Eng Securities (“PTKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Maybank Kim Eng Securities JSC (License Number: 71/UBCK-GP) is licensed under the State Securities Commission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.
Disclosure of Interest Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies.
Singapore: As of 21 February 2016, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.
Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.
Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
As of 21 February 2016, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report.
OTHERS Analyst Certification of Independence The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.
Reminder Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.
Definition of Ratings Maybank Kim Eng Research uses the following rating system BUY Return is expected to be above 10% in the next 12 months (excluding dividends) HOLD Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends) SELL Return is expected to be below -10% in the next 12 months (excluding dividends)
Applicability of Ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.
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Malaysia Property
Malaysia Singapore London New York Maybank Investment Bank Berhad Maybank Kim Eng Securities Pte Ltd Maybank Kim Eng Securities Maybank Kim Eng Securities USA (A Participating Organisation of Maybank Kim Eng Research Pte Ltd (London) Ltd Inc Bursa Malaysia Securities Berhad) 50 North Canal Road 5th Floor, Aldermary House 777 Third Avenue, 21st Floor 33rd Floor, Menara Maybank, Singapore 059304 10-15 Queen Street New York, NY 10017, U.S.A. 100 Jalan Tun Perak, London EC4N 1TX, UK 50050 Kuala Lumpur Tel: (65) 6336 9090 Tel: (212) 688 8886 Tel: (603) 2059 1888; Tel: (44) 20 7332 0221 Fax: (212) 688 3500 Fax: (603) 2078 4194 Fax: (44) 20 7332 0302
Stockbroking Business: Hong Kong Indonesia India Level 8, Tower C, Dataran Maybank, Kim Eng Securities (HK) Ltd PT Maybank Kim Eng Securities Kim Eng Securities India Pvt Ltd No.1, Jalan Maarof Level 30, Plaza Bapindo 2nd Floor, The International 16, 59000 Kuala Lumpur th Three Pacific Place, Citibank Tower 17 Floor Maharishi Karve Road, Tel: (603) 2297 8888 1 Queen’s Road East, Jl Jend. Sudirman Kav. 54-55 Churchgate Station, Fax: (603) 2282 5136 Hong Kong Jakarta 12190, Indonesia Mumbai City - 400 020, India
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Philippines Thailand Vietnam Saudi Arabia Maybank ATR Kim Eng Securities Inc. Maybank Kim Eng Securities Maybank Kim Eng Securities Limited In association with 17/F, Tower One & Exchange Plaza (Thailand) Public Company Limited 4A-15+16 Floor Vincom Center Dong Anfaal Capital Ayala Triangle, Ayala Avenue 999/9 The Offices at Central World, Khoi, 72 Le Thanh Ton St. District 1 Villa 47, Tujjar Jeddah Makati City, Philippines 1200 20th - 21st Floor, Ho Chi Minh City, Vietnam Prince Mohammed bin Abdulaziz Rama 1 Road Pathumwan, Street P.O. Box 126575 Tel: (63) 2 849 8888 Bangkok 10330, Thailand Tel : (84) 844 555 888 Jeddah 21352 Fax: (63) 2 848 5738 Fax : (84) 8 38 271 030 Tel: (66) 2 658 6817 (sales) Tel: (966) 2 6068686 Tel: (66) 2 658 6801 (research) Fax: (966) 26068787
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Malaysia Thailand Rommel Jacob Tanasak Krishnasreni [email protected] [email protected] Tel: (603) 2717 5152 Tel: (66)2 658 6820
Indonesia Harianto Liong [email protected] Tel: (62) 21 2557 1177
New York India Andrew Dacey Manish Modi [email protected] [email protected] Tel: (212) 688 2956 Tel: (91)-22-6623-2601
Vietnam Philippines Tien Nguyen Keith Roy [email protected] [email protected] Tel: (84) 44 555 888 x8079 Tel: (63) 2 848-5288 www.maybank-ke.com | www.maybank-keresearch.com
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