/ Company Flash Note

Refer to important disclosures at the end of this report

Page 1 DBS Group Research . Equity 15 September 2015

Analyst: Carol WU +852 2863 8841 Evergrande Real Estate [email protected] (3333 HK) Danielle WANG CFA +852 2820 4915 HOLD; HK$4.55 [email protected] Price Target: HK$5.35 (under review) (18% upside) Andy YEE CFA, +852 2971 1773 [email protected]

Ken HE CFA +86 21 6888 3375 [email protected] Evergrande SG takeaways: Transforming into a holding company

• Investors’ focus: margin trend, progress of non- Provider businesses, respectively and is considering buying a property business spin-offs, and balance sheet health listco in Hong Kong for its dairy, grain, and oil businesses. Evergrande expects to own over six listcos to host its non- Plans to reduce funding cost by exploring onshore • property businesses. The key is to enhance disclosure and private bond market and reducing perpetual securities run these businesses separately without capital input from • May not raise funds by spinning off its other the property business. However, capital can only be raised businesses anytime soon once the listcos achieve a certain level of profit.

• Share buyback is restricted by quota; aims to maintain Share buyback to continue but restricted by free float a high dividend payout requirement. Evergrande has utilised 7.3% out of its 10% share buyback quota YTD. The company is hosting board meeting to extend the 10% quota. However, it can only Exploring onshore private bonds to lower funding costs. buy back another 8% in maximum, given its free float Evergrande reduced its average funding cost from 9.3% in requirement of 22% (vs. current 30%). Evergrande’s free 2014 to 8.4% in 1H15 and the company expects to lower float requirement is different from generate rule of 25% this further to 8% by end-15. Although the company has due to special treatment at IPO. used up its quota for public corporate bonds of Rmb20bn, it is exploring the onshore private bond market to raise FY15 contracted sales may reach Rmb180bn. The company funds at a lower cost to refinance its trust loan (Rmb48bn) brought forward 11.1m sm of saleable resources to 2H15 at c.10% cost. The company is also committed to repay and can launch 19m sm in 2H15. Assuming a 60% sell- Rmb13bn of project-level perpetual securities by using sales through rate and Rmb7.6k/sm ASP, 2H15 presales can proceeds of its respective projects in 2H15. potentially reach Rmb132bn and bring full-year sales up to over Rmb200bn. Although the company may slow down its Interest cost savings will help support net profit margins. project launches after achieving its target of Rmb150bn, Assuming that Evergrande can maintain its debt at the presales growth is likely to be over 30%, better than peers. current level, lower its average funding cost to 8%, and reducing perp by Rmb13bn, it will save Rmb3.8bn in Aiming to see improving gross margins in 2H15. The interest cost annually, compared with its 1H15 core company expects full-year gross margin to be at the c.30% earnings of Rmb4bn. Onshore private bond may be issued level. Evergrande’s 8M15 ASP was 6% higher than FY14 at 6% to 7%, compared with development loan of c.6.8% ASP, which the company expects to support its gross in 2H15 (vs. current 7.17%). margins in 2016 and 2017. Projects in tier 1, tier 2, and tier 3 cities accounted for <1%, 54%, and 46% of 1H15 May not raise funds through spin-offs of other businesses revenues respectively. Tier 1 cities’ revenue contribution will but disclosures will be enhanced. Evergrande aims to list its increase starting 2H16. In our view, the margins of projects water, football, and culture businesses on the National in tier 1 cities are likely to be lower. Evergrande will need to Equities Exchange and Quotations System. The company intensify its efforts on cost savings to maintain current currently owns two listco (708.HK and 136.HK) for its margins. healthcare and Integrated Internet Community Service

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China / Hong Kong Flash Note

Comfortable with current land bank exposure. Evergrande’s Intends to maintain dividend payout at 50% of net profit land bank splits in tiers 1/2 and 3 cities are currently at 53% attributable to shareholders (after perpetual distribution). and 47% respectively. In terms of land cost expenditure, The company intends to maintain a high dividend payout of Evergrande spent 71% of its total land cost in tier 1/2 cities 50% including IP revaluation gain. Bond covenants require and 29% in tier 3 cities. Land acquisition activities slowed FCCR of 2.75x when hosting the board meeting regarding down from previous years but still expects to drive 20% to dividend payment. Evergrande is now trading at 6.4x FY16F 30% presales growth in the coming three years. PE (vs. 6.5x for its large-cap peers). Maintain HOLD with unchanged TP of HK$5.35, based on SOTP valuation.

Discount to NAV Discount to NAV band

% HK$ 0 10.0 (10) 9.0 (20) 8.0 -16% (30) 7.0 -32% (40) +1SD -45.6% 6.0 (50) Avg: -56.8% 5.0 -48% (60) 4.0 -64% 3.0 (70) -1SD -68.1% (80) 2.0 -80% 1.0 (90) Jul-12 Jun-13 Feb-12 Oct-14 Apr-10 Sep-10 Sep-15 Dec-12 Nov-09 Nov-13 Mar-11 Mar-15 Jul-12 Aug-11 May-14 Jun-13 Feb-12 Oct-14 Apr-10 Sep-10 Sep-15 Dec-12 Nov-09 Nov-13 Mar-11 Mar-15 Aug-11 May-14 Source: Thomson Reuters, DBS Vickers Source: Thomson Reuters, DBS Vickers

PE chart PB chart

x x 16 3.5 14 3.0 12 2.5 10 2.0 +1SD: 1.5x 8 1.5 +1SD: 6.3x Avg: 1x 6 Avg: 4.7x 1.0 -1SD: 0.4x 4 -1SD: 3x 0.5 2 0.0 Jul-12 Jul-13 Jul-12 Jul-13 Jan-13 Jan-13 Jun-11 Jun-11 Feb-14 Feb-15 Feb-14 Feb-15 Sep-15 Sep-15 Dec-11 Dec-11 Nov-09 Nov-10 Nov-09 Nov-10 Aug-14 Aug-14 May-10 May-10 Source: Thomson Reuters, DBS Vickers Source: Thomson Reuters, DBS Vickers

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China / Hong Kong Flash Note

Valuation comparison

3-mth daily Net Disc/ 15-Sep Mkt trading 12-m EPS gth PE PE Yield Yield ROE ROE Gearing P/Bk NAV (Prem) Price Cap value Recom target 15F 16F 15F 16F 14A 15F 15F 16F 14A 14A to NAV Company Name Code HK$ HK$bn US$m HK$ % % x x % % % % % x HK$ % Large cap China Overseas* 688 HK 22.75 224.3 81.5 Buy 38.96 (8) 7 7.3 6.8 2.4 2.8 17.2 15.5 31.7 1.4 25.4 10.6 * 2007 HK 2.71 61.2 10.1 Buy 4.86 (20) 8 5.1 4.7 6.1 6.4 15.4 14.8 54.2 0.7 4.4 38.4 CR Land* 1109 HK 18.54 128.5 47.6 Buy 24.98 (28) 16 10.2 8.8 2.7 2.7 11.0 10.9 42.7 1.1 27.5 32.6 China V anke 'H'* 2202 HK 16.7 184.5 26.7 Buy 23.41 8 17 8.9 7.6 3.6 3.9 18.2 18.6 5.4 1.7 22.4 25.4 Wanda 'H' 3699 HK 46 208.3 48.4 NR n.a. (41) 24 9.5 7.6 2.6 3.0 11.4 13.6 60.4 1.1 n.a. n.a. Evergrande* 3333 HK 4.55 66.0 58.6 Hold 5.35 (50) 37 8.8 6.4 11.3 2.8 5.7 7.8 85.9 0.5 9.4 51.7 Longfor 960 HK 9.51 55.4 5.1 NR n.a. (19) 11 6.3 5.7 3.6 3.7 14.4 14.1 57.1 1.0 n.a. n.a. * 813 HK 11.22 39.0 15.0 Buy 13.50 (7) 6 4.3 4.0 7.6 8.0 15.2 14.6 58.6 0.7 28.5 60.7 A v erage (21) 16 7.5 6.5 5.0 4.2 13.6 13.7 49.5 1.0 36.5 Mid cap * 3383 HK 3.76 14.7 6.7 Hold 3.66 (27) (10) 3.5 3.9 10.5 7.1 8.8 7.4 75.2 0.3 16.6 77.4 China South City*^^ 1668 HK 1.91 15.3 8.9 Buy 2.96 (45) 17 7.1 6.1 7.3 6.0 8.1 9.1 78.4 0.6 5.2 63.1 COGO* 81 HK 2.41 5.5 1.2 Buy 4.30 29 49 3.4 2.3 2.1 2.1 12.5 16.1 70.4 0.2 9.2 73.8 Franshion* 817 HK 1.87 20.0 5.4 Buy 2.97 (47) 24 6.5 5.2 6.1 4.6 7.9 9.3 58.1 0.5 4.5 58.8 Greentown 3900 HK 5.74 12.4 5.5 NR n.a. 67 8 3.5 3.3 0.0 4.5 10.9 11.0 76.7 0.4 18.5 69.0 Guangzhou R&F 2777 HK 7.32 23.6 10.3 NR n.a. 5 11 3.5 3.2 0.0 8.7 13.0 12.8 91.7 0.5 18.1 59.6 Hopson Dev 754 HK 6.4 14.3 1.3 NR n.a. (57) 7 11.4 10.7 0.0 0.0 2.5 2.0 73.6 0.3 n.a. n.a. KWG Property 1813 HK 4.86 14.6 6.3 NR n.a. (8) 20 3.9 3.2 8.3 8.8 14.2 15.2 66.8 0.6 10.8 55.1 Poly (Hong Kong) 119 HK 2.1 7.7 7.9 NR n.a. (54) 32 17.8 13.5 3.6 1.9 1.9 2.9 103.9 0.3 13.1 84.0 Shenzhen Inv 604 HK 2.76 20.4 11.7 NR n.a. (38) 12 8.4 7.5 5.8 6.5 8.8 9.1 73.9 0.6 n.a. n.a. * 272 HK 1.69 13.6 4.7 Hold 1.97 (131) n.a. n.a. n.a. 3.6 0.5 (1.5) (0.3) 79.1 0.3 4.9 65.7 Sino-Ocean Land* 3377 HK 4.16 31.3 5.6 Buy 6.70 (21) 26 7.4 5.9 5.6 4.5 8.3 9.7 65.9 0.6 8.4 50.3 Soho China* 410 HK 2.99 15.5 4.6 FV 3.60 (93) 67 46.6 28.0 10.1 1.1 0.7 1.2 19.3 0.3 9.0 66.7 China 1918 HK 4.14 14.1 12.8 NR n.a. 12 22 3.1 2.6 5.6 5.8 20.0 21.0 44.5 0.7 n.a. n.a. Yanlord Land*^ YLLG SP 1.03 2.0 1.4 Buy 1.54 (29) 44 10.0 6.9 1.4 1.4 4.6 6.4 44.9 0.5 2.0 47.4 * 123 HK 1.23 15.3 5.4 Hold 1.49 (41) 16 7.4 6.4 5.8 5.6 5.7 6.3 63.1 0.4 3.1 60.6 Average# (18) 20 6.9 5.8 4.4 4.8 9.1 9.9 70.5 0.5 63.5 Small cap BJ Cap Land 'H' 2868 HK 3.08 6.2 3.6 NR n.a. (8) 24 3.3 2.7 9.9 8.0 13.4 16.7 87.0 0.6 n.a. n.a. BJ North Star 'H' 588 HK 2.1 7.1 2.1 NR n.a. 6 12 7.0 6.3 3.5 4.1 5.2 5.6 73.0 0.4 n.a. n.a. * 1224 HK 1.89 4.9 0.7 Hold 2.06 6 (79) 4.3 20.8 2.6 4.6 7.4 1.5 18.5 0.3 2.8 31.7 Central China* 832 HK 1.43 3.5 0.4 Buy 1.89 (15) 8 3.8 3.5 9.3 7.8 11.1 11.2 43.4 0.4 6.1 76.4 China SCE 1966 HK 1.7 5.8 0.7 NR n.a. 11 24 4.8 3.9 0.0 5.2 15.1 15.7 68.0 0.7 n.a. n.a. CIFI Holdings 884 HK 1.36 9.2 2.4 NR n.a. 9 22 3.3 2.7 9.8 8.4 19.3 19.5 58.2 0.7 n.a. n.a. First Sponsor*^ FSG SP 1.23 0.7 0.1 Buy 1.57 112 13 13.4 11.8 1.6 1.4 5.9 6.4 n.a. 0.7 2.0 39.9 Glorious Property 845 HK 0.88 6.9 0.7 NR n.a. (127) (63) 7.1 19.0 0.0 0.0 1.2 1.9 100.0 0.4 5.9 85.0 Hydoo Int'l 1396 HK 0.92 3.7 0.4 NR n.a. 42 28 4.2 3.3 6.2 9.3 16.0 n.a. 60.4 0.7 n.a. n.a. Kaisa Group 1638 HK 1.56 8.0 0.0 NR n.a. 14 17 2.2 1.9 11.9 13.4 17.4 16.5 70.4 0.3 n.a. n.a. Lai Fung* 1125 HK 0.128 2.1 0.1 NR n.a. (79) 50 9.0 6.0 2.4 2.4 1.8 2.6 10.8 0.2 0.6 77.9 Minmetals Land 230 HK 0.75 2.5 0.3 NR n.a. 43 44 4.1 2.9 2.0 2.4 7.3 9.7 49.2 0.3 n.a. n.a. Powerlong 1238 HK 1.43 5.7 0.8 NR n.a. (16) 21 4.1 3.4 5.4 5.5 5.6 8.0 66.2 0.3 n.a. n.a. Renhe Commercial 1387 HK 0.415 18.2 4.9 NR n.a. n.a. n.a. n.a. n.a. 0.0 n.a. n.a. n.a. 41.5 0.4 2.7 84.8 Road King 1098 HK 6.77 5.0 0.4 NR n.a. n.a. n.a. n.a. n.a. 8.6 n.a. n.a. n.a. 0.0 0.4 n.a. n.a. Greenland* 337 HK 3.58 8.9 6.7 Buy 8.28 345 195.9 16.3 5.3 0.0 0.0 7.7 18.7 154.5 1.3 6.4 43.8 SRE Group 1207 HK 0.4 2.3 2.8 NR n.a. n.a. n.a. n.a. n.a. 0.0 n.a. n.a. n.a. 182.1 0.3 n.a. n.a. Wuzhou Int'l 1369 HK 1.24 6.2 3.1 NR n.a. (10) 61 20.3 12.7 0.0 0.0 6.4 10.0 60.4 1.3 n.a. n.a. Ying Li^ YINGLI SP 0.134 0.3 0.3 NR n.a. n.a. n.a. n.a. n.a. 0.0 n.a. n.a. n.a. 0.0 0.4 0.9 85.4 Yuzhou Properties* 1628 HK 1.72 6.6 1.3 NR n.a. 31 39 3.0 2.2 7.7 10.2 18.3 21.7 59.8 0.6 5.0 65.6 Zhong An 672 HK 0.8 1.9 0.1 NR n.a. n.a. n.a. n.a. n.a. 0.0 n.a. n.a. n.a. 76.9 0.3 n.a. n.a. Average** (1) 12 5.5 6.5 4.3 6.1 11.1 11.5 61.9 0.5 71.5 Average (Overall)@ (12) 16 6.5 6.2 4.5 5.1 10.8 11.4 62.5 0.6 58.6~ ^ Denominated in SGD for price and market cap ~ Simple average discount to NAV; Market cap weighted average NAV = 37% # Exclude Soho China & Shui On Land ** Exclude Greenland, First Sponsor & Lai Fung @ Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung ^^ FY15: 16F; FY16: FY17F Source: Thomson Reuters, *DBS Vickers

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China / Hong Kong Flash Note

PE valuations, 2007 to 2014 (based on earnings forecasts)

15-Sep Mkt 15F 16F PE Price Cap PE PE Trough Peak Trough Peak Trough Peak Trough Peak Trough Peak Trough Peak Trough Peak Company Name Code HK$ HK$bn x x 07-08 07-08 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 China Overseas* 688 HK 22.75 224.3 7.3 6.8 9.8 37.8 11.2 25.3 12.9 17.2 6.6 12.2 7.2 12.5 7.9 11.4 6.2 8.6 Country Garden* 2007 HK 2.71 61.2 5.1 4.7 3.6 50.2 5.2 20.3 10.7 16.7 5.2 11.6 5.8 9.2 6.5 10.0 4.0 6.4 CR Land* 1109 HK 18.54 128.5 10.2 8.8 15.9 69.0 13.1 30.4 14.4 21.1 7.2 15.2 10.1 17.6 11.9 16.2 7.1 10.7 China V anke 'H'* 2202 HK 16.70 184.5 8.9 7.6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6.3 9.0 Dalian Wanda 'H' 3699 HK 46.00 208.3 9.5 7.6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Evergrande* 3333 HK 4.55 66.0 8.8 6.4 n.a. n.a. n.a. n.a. 3.8 9.1 2.9 8.9 3.3 6.1 4.2 6.4 3.4 4.6 Longfor 960 HK 9.51 55.4 6.3 5.7 n.a. n.a. 17.8 24.4 13.8 21.7 6.3 14.2 5.6 11.9 7.4 10.4 5.3 6.9 Shimao Property* 813 HK 11.22 39.0 4.3 4.0 3.8 30.0 4.2 18.4 8.6 13.3 3.6 9.7 3.9 9.5 6.4 8.8 4.3 6.1 Average 7.5 6.5 8.3 46.8 10.3 23.7 10.7 16.5 5.3 12.0 6.0 11.1 7.4 10.5 5.2 7.5 Agile Property* 3383 HK 3.76 14.7 3.5 3.9 1.6 36.9 4.7 21.0 8.5 13.7 2.7 11.1 3.8 7.1 4.0 7.6 2.4 4.3 China Sout h Cit y *^ ^ 1668 HK 1.91 15.3 7.1 6.1 n.a. n.a. 17.7 19.6 6.9 20.4 4.3 12.3 5.9 6.6 4.3 6.9 5.1 11.8 COGO* 81 HK 2.41 5.5 3.4 2.3 n.a. n.a. n.a. n.a. n.a. n.a. 3.6 9.8 5.0 9.8 6.3 10.0 3.1 5.1 Franshion* 817 HK 1.87 20.0 6.5 5.2 5.5 48.2 6.9 21.8 15.0 19.1 6.1 16.8 6.0 10.3 7.3 9.3 4.8 6.8 Greentown 3900 HK 5.74 12.4 3.5 3.3 1.9 15.7 2.3 18.3 6.3 10.2 2.0 6.1 1.5 6.3 3.3 6.6 2.3 4.5 Guangzhou R&F 2777 HK 7.32 23.6 3.5 3.2 2.4 41.2 4.8 17.8 6.8 10.5 3.2 8.0 3.2 7.4 4.7 8.1 3.8 4.8 Hopson Dev 754 HK 6.40 14.3 11.4 10.7 1.0 21.0 2.2 10.3 4.9 7.5 2.8 6.4 2.8 16.0 5.6 13.7 3.9 16.1 KWG Property 1813 HK 4.86 14.6 3.9 3.2 2.1 34.3 2.9 22.1 8.0 14.2 3.1 9.9 2.8 6.6 3.7 6.6 2.9 5.2 Poly (Hong Kong) 119 HK 2.10 7.7 17.8 13.5 10.0 30.0 3.8 51.0 14.9 25.2 4.2 16.1 4.9 9.8 5.2 9.9 3.9 6.4 Shenzhen Inv 604 HK 2.76 20.4 8.4 7.5 2.1 22.8 4.2 14.9 6.5 9.5 3.8 9.0 4.6 8.6 6.2 11.8 5.3 8.0 Shui On Land* 272 HK 1.69 13.6 n.a. n.a. 1.7 25.0 3.4 21.3 9.4 16.6 5.2 16.2 6.5 12.6 9.1 17.6 10.6 13.8 Sino-Ocean Land* 3377 HK 4.16 31.3 7.4 5.9 4.7 82.2 9.0 24.8 11.3 15.7 4.1 10.3 5.4 12.1 6.7 11.4 6.0 7.8 Soho China* 410 HK 2.99 15.5 46.6 28.0 6.4 23.6 4.5 12.4 5.2 8.8 10.1 19.9 5.0 6.9 7.1 8.6 9.9 13.3 Sunac China 1918 HK 4.14 14.1 3.1 2.6 n.a. n.a. n.a. n.a. 4.5 5.8 1.4 3.5 1.4 5.5 3.1 4.9 2.2 5.1 Yanlord Land*^ YLLG SP 1.03 2.0 10.0 6.9 4.1 28.7 6.6 19.8 9.3 14.5 5.0 10.5 6.7 15.0 9.3 14.4 7.5 9.8 Yuexiu Property* 123 HK 1.23 15.3 7.4 6.4 1.9 31.9 2.9 25.5 8.9 15.7 4.5 11.0 4.5 9.1 5.8 9.5 5.9 7.9 Average# 6.9 5.8 3.4 35.7 5.7 22.3 8.6 14.0 3.6 10.0 4.2 9.3 5.4 9.3 4.2 7.4 BJ Cap Land 'H' 2868 HK 3.08 6.2 3.3 2.7 1.6 18.8 3.1 15.9 5.1 9.6 1.9 5.9 2.0 4.7 3.3 5.3 2.6 3.3 BJ North Star 'H' 588 HK 2.10 7.1 7.0 6.3 3.5 49.9 5.0 18.0 7.5 12.7 3.6 10.5 6.5 8.9 4.0 7.0 3.8 8.2 C C Land* 1224 HK 1.89 4.9 4.3 20.8 18.7 536.5 n.a. n.a. n.a. n.a. 5.2 17.4 3.9 12.7 6.7 10.9 3.5 6.4 Central China* 832 HK 1.43 3.5 3.8 3.5 1.3 10.8 1.5 9.4 3.9 6.6 2.8 5.6 2.8 6.3 3.5 5.2 2.6 3.8 China SCE 1966 HK 1.70 5.8 4.8 3.9 n.a. n.a. n.a. n.a. 4.7 6.9 3.7 5.5 2.9 3.5 2.4 6.6 5.6 5.6 CIFI Holdings 884 HK 1.36 9.2 3.3 2.7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.8 5.9 3.2 4.3 F irst Sponsor*^ F SG SP 1.23 0.7 13.4 11.8 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 29.9 31.3 Glorious Property 845 HK 0.88 6.9 7.1 19.0 n.a. n.a. 12.9 17.7 6.4 10.8 2.8 7.3 2.8 6.3 4.8 11.0 4.4 9.1 Hydoo Int'l 1396 HK 0.92 3.7 4.2 3.3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3.6 5.5 2.3 5.9 Kaisa Group 1638 HK 1.56 8.0 2.2 1.9 n.a. n.a. n.a. n.a. 3.5 8.4 3.7 10.0 2.9 6.9 2.8 5.9 1.9 3.9 Lai Fung* 1125 HK 0.13 2.1 9.0 6.0 0.8 7.9 3.2 11.1 6.7 17.4 3.1 19.0 2.6 4.9 4.0 4.0 4.0 4.0 Minmetals Land 230 HK 0.75 2.5 4.1 2.9 0.8 3.4 2.2 13.2 6.9 20.1 3.8 n.a. 2.3 7.1 4.2 6.6 3.6 5.9 Powerlong 1238 HK 1.43 5.7 4.1 3.4 n.a. n.a. 4.7 7.0 5.3 8.2 1.5 6.5 1.6 5.6 3.6 6.7 2.8 3.8 Renhe Commercial 1387 HK 0.42 18.2 n.a. n.a. 10.5 12.5 5.7 10.7 5.4 7.2 3.2 7.0 2.7 9.4 4.7 23.9 7.7 7.7 Road King 1098 HK 6.77 5.0 n.a. n.a. 1.1 11.0 4.4 7.2 5.4 7.3 2.2 7.0 2.4 7.6 6.5 7.3 6.8 6.8 Greenland* 337 HK 3.58 8.9 16.3 5.3 0.1 2.8 1.1 11.9 3.6 6.7 1.2 3.2 1.0 7.6 0.6 44.8 11.7 28.2 SRE Group 1207 HK 0.40 2.3 n.a. n.a. 1.0 8.8 1.5 4.6 2.0 3.7 2.3 2.9 0.9 1.4 1.1 1.1 1.1 1.1 Wuzhou Int'l 1369 HK 1.24 6.2 20.3 12.7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7.3 12.4 Ying Li^ YINGLI SP 0.13 0.3 n.a. n.a. n.a. n.a. 64.8 196.2 22.4 331.2 6.9 42.9 4.7 13.0 7.8 16.1 4.1 14.7 Yuzhou Properties* 1628 HK 1.72 6.6 3.0 2.2 n.a. n.a. 9.6 11.7 5.5 9.9 2.7 5.8 3.6 6.5 3.6 6.5 2.4 3.3 Zhong An 672 HK 0.80 1.9 n.a. n.a. 1.7 128.9 2.9 22.3 7.8 13.8 3.0 12.3 9.9 14.9 5.3 10.3 8.3 8.3 Average** 5.5 6.5 4.5 86.7 9.9 27.8 6.5 32.6 3.3 10.5 3.5 7.7 4.2 8.3 4.1 6.4 Average (Overall)@ 6.5 6.2 4.6 56.7 8.2 24.8 8.1 22.3 3.8 10.6 4.2 8.9 5.2 9.1 4.3 6.9

^ Denominated in SGD for price and market cap # Exclude Soho China & Shui On Land for 15F & 16F PE ** Exclude Greenland, First Sponsor & Lai Fung for 15F & 16F PE @ Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 15F & 16F PE ^^ FY15: 16F; FY16: FY17F

Source: Thomson Reuters, *DBS Vickers

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China / Hong Kong Flash Note

PE valuations, 2007 to 2014 (based on reported earnings) 3-mth daily 15-Sep Mkt trading FY15 FY16 PE (x) Price Cap value PE PE Avg Peak Trough Peak Peak Peak Peak Peak Peak Peak Company Name Code HK$ HK$bn US$m x x PE (x) 2007 2008 2008 2009 2010 2011 2012 2013 2014 China Overseas* 688 HK 22.75 224.3 81.5 7.3 6.8 10.4 34.3 10.2 26.0 21.2 12.0 9.7 10.4 9.0 7.1 Country Garden* 2007 HK 2.71 61.2 10.1 5.1 4.7 14.6 41.7 11.3 86.8 25.3 10.6 9.0 8.2 9.5 7.1 CR Land* 1109 HK 18.54 128.5 47.6 10.2 8.8 12.2 52.0 13.1 35.6 21.6 14.5 10.2 11.5 9.3 7.8 China V anke 'H'* 2202 HK 16.70 184.5 26.7 8.9 7.6 8.9 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 9.9 10.3 Dalian Wanda 'H' 3699 HK 46 208.3 48.4 9.5 7.6 10.0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6.1 Evergrande* 3333 HK 4.55 66.0 58.6 8.8 6.4 6.3 n.a. n.a. n.a. 52.1 7.0 6.6 6.3 4.5 3.8 Longfor 960 HK 9.51 55.4 5.1 6.3 5.7 6.9 n.a. n.a. n.a. 14.8 11.7 9.2 10.2 8.7 6.2 Shimao Property* 813 HK 11.22 39.0 15.0 4.3 4.0 9.4 18.7 11.4 63.7 14.2 9.6 6.7 7.4 7.6 6.7 Average 7.5 6.5 9.8 36.7 11.5 53.0 24.9 10.9 8.6 9.0 8.4 6.9 Agile Property* 3383 HK 3.76 14.7 6.7 3.5 3.9 6.2 28.8 1.2 7.9 20.9 6.1 9.6 5.9 7.2 5.6 China South City*^^ 1668 HK 1.91 15.3 8.9 7.1 6.1 5.2 n.a. n.a. n.a. n.a. n.a. 5.8 4.3 7.0 9.7 COGO* 81 HK 2.41 5.5 1.2 3.4 2.3 7.5 12.4 32.9 188.9 n.a. 4.9 8.0 8.9 9.2 13.3 Franshion* 817 HK 1.87 20.0 5.4 6.5 5.2 8.9 7.4 8.4 33.1 24.9 17.0 9.6 9.5 6.8 5.1 Greentown 3900 HK 5.74 12.4 5.5 3.5 3.3 14.3 25.5 4.2 30.5 18.9 10.7 5.2 4.3 6.2 12.4 Guangzhou R&F 2777 HK 7.32 23.6 10.3 3.5 3.2 7.4 26.4 3.3 28.6 20.6 10.2 8.3 6.0 5.2 5.9 Hopson Dev 754 HK 6.4 14.3 1.3 11.4 10.7 5.9 12.3 1.1 16.2 4.1 3.9 11.7 7.3 8.2 7.1 KWG Property 1813 HK 4.86 14.6 6.3 3.9 3.2 8.0 9.3 6.2 n.a. 19.5 11.8 6.9 4.9 4.9 4.5 Poly (Hong Kong) 119 HK 2.1 7.7 7.9 17.8 13.5 11.8 44.2 11.4 59.7 40.1 18.6 10.8 8.3 9.1 16.4 Shenzhen Inv 604 HK 2.76 20.4 11.7 8.4 7.5 7.2 13.6 2.2 20.5 13.7 8.9 6.7 5.5 6.6 5.4 Shui On Land* 272 HK 1.69 13.6 4.7 n.a. n.a. 7.3 15.1 1.6 11.7 7.8 6.3 4.7 9.1 10.4 9.1 Sino-Ocean Land* 3377 HK 4.16 31.3 5.6 7.4 5.9 10.0 24.0 4.5 25.5 22.5 16.2 12.8 8.5 8.3 7.1 Soho China* 410 HK 2.99 15.5 4.6 46.6 28.0 10.8 20.5 n.a. n.a. 6.7 7.9 8.0 2.4 3.8 7.1 Sunac China 1918 HK 4.14 14.1 12.8 3.1 2.6 3.6 n.a. n.a. n.a. n.a. n.a. 3.2 5.4 6.0 6.7 Yanlord Land*^ YLLG SP 1.03 2.0 1.4 10.0 6.9 10.6 33.4 4.1 27.4 17.6 11.0 11.6 8.0 10.4 8.5 Yuexiu Property* 123 HK 1.23 15.3 5.4 7.4 6.4 7.1 15.9 3.4 20.2 n.a. 12.0 2.5 5.7 6.8 6.3 Average# 6.9 5.8 8.2 20.6 6.5 39.2 18.1 10.4 7.8 6.5 7.3 8.1 BJ Cap Land 'H' 2868 HK 3.08 6.2 3.6 3.3 2.7 7.4 23.6 2.3 21.7 13.2 6.3 5.4 4.7 4.0 3.2 BJ North Star 'H' 588 HK 2.1 7.1 2.1 7.0 6.3 7.9 46.9 1.6 12.7 6.1 6.9 5.2 5.7 7.7 9.6 C C Land* 1224 HK 1.89 4.9 0.7 4.3 20.8 10.0 36.3 n.a. n.a. n.a. 36.8 27.0 13.7 16.1 4.7 Central China* 832 HK 1.43 3.5 0.4 3.8 3.5 4.7 n.a. 1.1 6.7 11.0 7.4 6.6 6.3 6.1 5.8 China SCE 1966 HK 1.7 5.8 0.7 4.8 3.9 5.3 n.a. n.a. n.a. n.a. 5.9 6.1 6.3 5.8 5.8 CIFI Holdings 884 HK 1.36 9.2 2.4 3.3 2.7 3.6 n.a. n.a. n.a. n.a. n.a. n.a. 2.6 4.6 4.6 First Sponsor*^ FSG SP 1.23 0.7 0.1 13.4 11.8 14.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 33.3 Glorious Property 845 HK 0.88 6.9 0.7 7.1 19.0 8.8 n.a. n.a. n.a. 8.8 6.3 8.5 10.1 39.2 (3.7) Hydoo Int'l 1396 HK 0.92 3.7 0.4 4.2 3.3 10.6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 27.6 Kaisa Group 1638 HK 1.56 8.0 0.0 2.2 1.9 3.3 n.a. n.a. n.a. 20.2 3.2 7.0 4.8 3.9 5.1 Lai Fung* 1125 HK 0.128 2.1 0.1 9.0 6.0 5.8 n.a. 2.1 15.2 5.9 7.8 5.4 2.5 5.7 2.9 Minmetals Land 230 HK 0.75 2.5 0.3 4.1 2.9 8.2 19.8 2.2 16.4 38.4 12.1 9.5 15.6 11.8 8.5 Powerlong 1238 HK 1.43 5.7 0.8 4.1 3.4 2.9 n.a. n.a. n.a. 3.0 3.7 3.2 3.1 5.4 3.9 Renhe Commercial 1387 HK 0.415 18.2 4.9 n.a. n.a. n.a. n.a. 7.8 9.3 9.1 9.4 5.7 17.4 (8.4) (5.3) Road King 1098 HK 6.77 5.0 0.4 n.a. n.a. 7.2 14.7 2.1 15.9 6.8 8.8 6.7 6.1 6.0 5.4 Greenland* 337 HK 3.58 8.9 6.7 16.3 5.3 13.2 13.1 2.4 39.3 7.2 4.9 4.2 (1.8) 364.4 108.1 SRE Group 1207 HK 0.4 2.3 2.8 n.a. n.a. 7.0 7.9 3.2 20.7 4.7 4.8 6.7 6.8 13.3 (13.9) Wuzhou Int'l 1369 HK 1.24 6.2 3.1 20.3 12.7 18.3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 4.2 32.2 Ying Li^ YINGLI SP 0.134 0.3 0.3 n.a. n.a. 26.7 n.a. 1.8 4.8 112.2 33.8 17.6 11.5 26.6 17.5 Yuzhou Properties* 1628 HK 1.72 6.6 1.3 3.0 2.2 4.1 n.a. n.a. n.a. 3.2 4.7 4.6 7.1 4.1 4.5 Zhong An 672 HK 0.8 1.9 0.1 n.a. n.a. 9.3 21.8 4.2 29.4 15.4 12.4 10.4 7.2 9.1 16.2 Average** 5.5 6.5 8.9 23.0 2.8 17.5 17.7 10.3 8.2 7.2 27.9 13.1 Average (Overall)@ 6.5 6.2 9.0 23.8 5.8 32.4 19.1 10.4 8.1 7.2 16.8 10.3 HSI Index HSI 19.2 9.1 23.1 18.2 13.6 11.7 11.0 11.3 12.0 ^ Denominated in SGD for price and market cap # Exclude Soho China & Shui On Land for 15F & 16F PE ** Exclude Greenland, First Sponsor & Lai Fung for 15F & 16F PE @ Exclude Soho China, Shui On Land, Greenland, First Sponsor & Lai Fung for 15F & 16F PE ^^ FY15: 16F; FY16: FY17F Source: Thomson Reuters, *DBS Vickers

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China / Hong Kong Flash Note

Share price performance Price Performance 2007 1-wk 2-wk 1-mth 2-mth 3-mth 4-mth 5-mth 6-mth YTD 1-yr 2011 2012 2013 2014 high %%%%%%%%%%% %%%% Tier 1 play ers China Overseas 688 HK 0.2 2.7 (3.2) (10.4) (19.5) (23.0) (20.6) 4.4 (1.3) 4.8 (9.7) 78.0 (5.6) 5.7 17.8 Country Garden 2007 HK 0.7 0.7 (7.8) (13.4) (22.1) (32.6) (28.1) (8.1) (12.6) (14.5) (2.3) 46.4 15.3 (32.8) (79.0) CR Land 1109 HK (2.9) (0.3) (9.1) (16.1) (26.3) (25.8) (22.9) (4.0) (6.3) 6.5 (12.1) 69.1 (8.9) 6.4 (10.4) China 'H' 2202 HK (4.0) (6.8) (11.0) (8.5) (16.4) (15.7) (12.3) 1.2 (3.5) 15.2 n.a. n.a. n.a. n.a. n.a. Dalian Wanda 3699 HK (2.6) (3.2) (17.2) (20.6) (35.8) (33.9) (17.6) (1.3) (7.1) n.a. n.a. n.a. n.a. n.a. n.a. Evergrande 3333 HK (5.4) (10.4) (11.3) (0.4) (10.1) (34.1) (2.6) 34.2 44.9 43.1 (14.8) 32.0 (30.4) 6.1 n.a. Longfor Properties 960 HK 1.3 3.9 (9.9) (15.4) (22.3) (28.5) (19.3) (1.3) (4.8) (1.1) (18.9) 72.9 (28.6) (7.8) n.a. Shimao Property 813 HK 4.3 8.7 (12.5) (21.5) (33.5) (36.0) (36.8) (27.4) (35.3) (34.7) (43.5) 120.5 21.9 (2.7) (61.4) Average (1.1) (0.6) (10.3) (13.3) (23.2) (28.7) (20.0) (0.3) (3.2) 2.7 (16.9) 69.8 (6.1) (4.2) (33.3) Tier 2 play ers Agile Property 3383 HK (0.8) (0.8) (13.2) (20.5) (36.4) (42.1) (35.2) (14.4) (14.7) (37.8) (39.2) 56.6 (23.8) (46.9) (80.9) China South City 1668 HK (2.1) (0.5) (20.7) (17.7) (29.0) (39.6) (45.4) (10.7) (46.0) (47.7) (32.0) 17.0 88.0 60.9 n.a. COGO 81 HK 0.8 (0.8) (22.5) (27.0) (41.4) (49.5) (47.5) (37.7) (38.8) (50.0) 88.6 105.6 (20.7) (46.7) (46.9) Franshion 817 HK 2.7 2.7 (21.1) (23.7) (36.6) (39.5) (36.2) (15.4) (15.8) (11.0) (35.9) 85.9 (3.2) (17.4) (70.0) Greentown 3900 HK 1.4 (1.0) (25.9) (31.7) (46.3) (45.3) (34.4) (11.8) (25.5) (31.7) (60.8) 321.4 (16.6) (35.0) (70.7) GZ R&F 2777 HK 0.5 4.0 (3.7) (13.7) (21.5) (24.9) (21.0) (17.1) (22.9) (19.2) (44.8) 110.1 (12.1) (16.3) (83.1) Hopson Dev 754 HK 2.4 10.3 (5.2) (7.5) (19.7) (26.8) (21.6) 19.9 (9.9) (18.7) (51.8) 207.2 (24.6) (24.0) (79.5) KWG 1813 HK 0.8 2.1 (6.5) (16.1) (28.9) (34.1) (24.7) 6.4 (4.4) (17.8) (55.7) 122.1 (26.1) 33.4 (64.3) Poly HK 119 HK (1.9) 5.0 (25.0) (31.6) (47.9) (54.3) (54.5) (40.2) (34.2) (35.8) (55.7) 79.8 (31.7) (22.9) (81.6) Shenzhen Inv 604 HK (1.1) 3.4 (12.9) (14.3) (31.3) (32.7) (24.4) 18.5 23.8 15.0 (48.7) 125.9 (7.0) (23.6) (64.4) Shui On Land 272 HK 0.0 0.0 (11.1) (12.9) (26.2) (35.0) (23.5) 1.8 (7.7) (14.2) (36.9) 58.9 (31.1) (23.1) (82.9) Sino-Ocean 3377 HK 4.3 5.3 (12.6) (21.2) (24.5) (29.5) (28.2) (12.2) (5.7) (6.7) (29.3) 60.8 (12.1) (13.4) (72.3) SOHO China 410 HK (4.8) (3.5) (35.0) (36.9) (42.5) (46.1) (47.8) (41.7) (45.4) (50.8) (10.6) 20.3 7.4 (18.0) (74.9) Sunac China 1918 HK (3.0) 1.0 (35.6) (41.2) (53.6) (58.6) (50.9) (36.1) (47.5) (34.2) (42.1) 272.7 (22.5) 69.7 n.a. Yanlord Land YLLG SP (1.0) 2.0 3.0 2.0 (7.2) (15.2) (2.4) 10.2 (1.0) (9.6) (43.2) 59.2 (19.4) (15.1) (75.6) Yuexiu Property 123 HK 2.5 1.7 (15.2) (18.5) (29.7) (33.5) (32.0) (14.6) (17.4) (20.0) (46.2) 118.8 (22.0) (16.8) (57.3) Average 0.1 1.9 (16.5) (20.8) (32.7) (37.9) (33.1) (12.2) (19.6) (24.4) (34.0) 113.9 (11.1) (9.7) (71.8) Tier 3 play ers BJ Cap. Land 2868 HK 0.3 2.7 (17.6) (32.2) (51.3) (53.3) (41.8) (23.8) 4.8 8.1 (41.2) 110.5 (18.0) 11.4 (58.7) BJ North Star 588 HK (1.9) (1.4) (18.3) (21.6) (45.2) (37.9) (17.6) (15.7) (15.0) (4.5) (45.5) 82.6 (16.7) 41.1 (73.4) C C Land 1224 HK 3.8 6.8 (6.4) 3.3 (5.0) (6.9) 16.7 40.0 40.0 26.0 (45.0) 88.9 (28.3) (30.8) (88.7) Central China 832 HK 0.0 (2.1) (17.3) (23.5) (39.9) (43.9) (33.2) (23.5) (18.3) (25.9) (31.2) 76.8 (12.8) (26.8) n.a. China SCE Property 1966 HK (0.6) 6.3 (1.7) (7.1) 0.0 (2.9) 15.6 19.7 4.9 7.6 (27.7) 20.2 16.2 (12.4) n.a. CIFI Holdings 884 HK (2.2) (2.9) (12.3) (20.0) (32.7) (45.6) (32.0) (19.5) (11.7) (12.3) n.a. n.a. 17.1 (6.1) n.a. First Sponsor FSG SP (1.6) (0.4) (3.1) (4.3) (3.9) (3.1) (0.4) 0.0 (1.6) (1.6) n.a. n.a. n.a. n.a. n.a. Glorious Property 845 HK 0.0 6.0 (12.0) (17.8) (14.6) (27.3) (17.0) (15.4) (26.7) (26.1) (49.1) 7.4 14.4 (28.1) n.a. Hydoo Int'l 1396 HK 0.0 (2.1) (2.1) (21.4) (39.1) (44.9) (46.8) (38.7) (52.3) (52.1) n.a. n.a. n.a. (13.5) n.a. Kaisa Group 1638 HK 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.1 (1.9) (48.9) (42.0) 79.1 4.2 (36.4) n.a. Lai Fung 1125 HK 6.7 2.4 (18.5) (24.7) (32.6) (34.7) (28.1) (20.5) (18.5) (26.9) (47.3) 25.5 (5.3) (19.9) (72.6) Minmetals Land 230 HK (1.3) 2.7 (10.7) (15.7) (33.0) (35.3) (33.6) (13.8) (15.7) (20.2) (53.4) 70.7 (19.5) (13.6) (79.8) Powerlong 1238 HK (1.4) 7.5 (2.1) (2.7) (25.5) (23.9) (11.2) 26.5 31.2 32.4 (59.1) 58.7 0.6 (34.3) n.a. Renhe Commercial 1387 HK 0.0 2.5 (29.7) (33.1) (40.7) (1.2) (3.5) 20.3 22.1 29.7 (34.6) (8.9) (38.9) (28.1) n.a. Road King 1098 HK 1.8 (0.9) (4.0) (3.1) (10.2) (16.0) (11.4) (0.9) 3.4 (3.0) (36.9) 52.1 9.6 (11.7) (60.4) Greenland 337 HK 8.2 7.5 (12.0) (26.6) (46.6) (54.9) (36.1) (25.6) 16.2 2.3 (66.1) 53.5 90.4 (18.3) (52.1) SRE Group 1207 HK 6.7 6.7 14.3 (11.1) (41.2) (45.9) 73.2 96.1 90.5 71.7 (55.7) 24.2 (32.9) (20.8) (88.3) Wuzhou Int'l 1369 HK 1.6 (3.1) (2.4) (10.8) (11.4) (27.9) (4.6) (8.1) (15.6) (36.1) n.a. n.a. n.a. 14.0 n.a. Ying Li YINGLI SP (0.7) 5.5 (25.6) (34.6) (43.0) (46.4) (46.4) (40.4) (45.3) (50.4) (41.4) 45.1 6.8 (38.0) (88.8) Yuzhou Properties 1628 HK 0.6 4.2 0.0 1.2 (20.0) (27.1) (13.1) (7.5) (11.8) (4.4) (18.6) 37.1 2.9 1.0 n.a. Zhong An 672 HK 5.3 6.7 (2.4) (5.9) (25.2) (25.9) (19.2) (2.4) (29.8) (35.0) (43.9) 7.5 26.3 (20.8) (86.1) Average 1.2 2.6 (8.8) (14.8) (26.7) (28.8) (13.8) (2.2) (2.4) (8.1) (43.4) 48.9 0.9 (14.6) (74.9) Average (Overall) 0.4 1.8 (11.8) (16.7) (28.2) (32.0) (21.8) (5.4) (8.7) (12.3) (35.5) 78.8 (4.9) (11.2) (67.4)

Hang Seng Index 1.2 1.5 (10.4) (14.2) (19.9) (22.7) (22.1) (9.7) (8.9) (11.7) (20.0) 22.9 2.9 1.3 (32.0) MSCI China 1.5 2.5 (11.0) (14.6) (24.5) (28.4) (29.1) (13.7) (11.8) (11.0) (20.4) 18.7 0.4 4.7 (44.0)

Source: Thomson Reuters

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China / Hong Kong Flash Note

DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows: STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >10% for large caps) HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps) FULLY VALUED (negative total return i.e. > -10% over the next 12 months) SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)

Share price appreciation + dividends

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a. such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and b. there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments stated therein.

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ANALYST CERTIFICATION The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of the date the report is published, the analyst and his / her spouse and/or relatives and/or associate who are financially dependent on the analyst, do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities, directorships and trustee positions).

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China / Hong Kong Flash Note

COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. DBSVHK and its subsidiaries do not have a proprietary position in the securities recommended in this report as of the date the report is published. 2. DBSVHK, DBSVUSA, DBS Bank Ltd and/or other affiliates may beneficially own a total of 1% or more of any class of common equity securities of the subject companies mentioned in this document as of the latest available date of the updated information.

3. Compensation for investment banking services: DBSVHK, DBSVUSA, DBS Bank Ltd and/or other affiliates have received compensation, within the past 12 months, and within the next 3 months may receive or intends to seek compensation for investment banking services from Franshion Properties (817 HK) and Yuexiu Property (123 HK) mentioned in this document.

DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.

RESTRICTIONS ON DISTRIBUTION General This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. Australia This document is being distributed in Australia by DBSVHK, which is exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act 2001 [“CA”] in respect of financial services provided to the recipients. DBSVHK is regulated by the Securities and Futures Commission under the laws of Hong KONG, which differ from Australian laws. Distribution of this report is intended only for “wholesale investors” within the meaning of the CA. Hong Kong This report is being distributed in Hong Kong by DBS Vickers (Hong Kong) Limited which is licensed and regulated by the Hong Kong Securities and Futures Commission. Indonesia This report is being distributed in Indonesia by PT DBS Vickers Securities Indonesia.

Malaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies.

Wong Ming Tek, Executive Director, ADBSR

Singapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No. 198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from, or in connection with the report. Thailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Research reports distributed are only intended for institutional clients only and no other person may act upon it. United This report is being distributed in the UK by DBS Vickers Securities (UK) Ltd, who is an authorised person in the meaning of Kingdom the Financial Services and Markets Act and is regulated by The Financial Conduct Authority. Research distributed in the UK is intended only for institutional clients. Dubai This research report is being distributed in The Dubai International Financial Centre (“DIFC”) by DBS Bank Ltd., (DIFC Branch) having its office at PO Box 506538, 3rd Floor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC), Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon it. United States Neither this report nor any copy hereof may be taken or distributed into the United States or to any U.S. person except in compliance with any applicable U.S. laws and regulations. It is being distributed in the United States by DBSV US, which accepts responsibility for its contents. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to herein should contact DBS Vickers Securities (USA) Inc (“DBSVUSA”) directly and not its affiliate. Other In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified, jurisdictions professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

DBS Vickers (Hong Kong) Limited 18th Floor Man Yee building, 68 Des Voeux Road Central, Central, Hong Kong Tel: (852) 2820-4888, Fax: (852) 2868-1523

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