Monday, September 28, 2020 FBMKLCI: 1, 509.14

THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* WWeeeekkllyy SSttrraatteeggyy

Market View, News in Brief: Corporate, Economy, and Share Buybacks

Kaladher Govindan Tel: +603-2167 9609 [email protected] www.taonline.com.my

Market View Possible Relief Rally Post Sabah Elections

The local blue-chip benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) was stuck in range bound trade last week, as profit-taking and selling from retailers amid dwindling trading liquidity ahead of the six-month loan moratorium expiry was offset by gains in key rubber glove makers due to virus resurgence fears in Europe and other global hotspots. Domestic political woes casted a dark cloud over the market after opposition leader Datuk Seri Anwar Ibrahim claimed a strong majority to form the next government, while delay of an audience with the king requested by him kept uncertainties elevated and sidelined investors.

Week-on-week, the FBM KLCI added 2.51 points, or 0.17 percent to 1,509.14, as gains on Hartalega (+RM2.84) and Top Glove (+82sen) overcame falls on Petronas Dagangan (- RM1.40), Public Bank (-50sen), Axiata (-18sen) and Maybank (-13sen). Average daily traded volume and value last week dwindled to 6.62 billion shares worth RM4.06 billion, compared to the 8.2 billion shares and RM5.8 billion average the previous week, as trading momentum in small caps, ACE Market and penny stocks slowed considerably due to profit-taking and reducing retail commitments.

Gabungan Rakyat Sabah’s (GRS) two-seat majority win in last Saturday’s Sabah state election could induce a relief rally today, supported further by the strong performance in the US equity markets last Friday and China’s strong industrial profits, which grew for the fifth consecutive month in August at 19.1% YoY. The loose alliance among Perikatan Nasional, Barisan Nasional (BN) and Parti Bersatu Sabah (PBS) succeeded in regaining control of the state assembly after defeating Warisan Plus that made up of Parti Warisan Sabah (Warisan), Parti Keadilan Rakyat (PKR), Democratic Action Party (DAP), Amanah and United Progressive Kinabalu Organisation (UPKO) with 38 seats versus the opponents’ 32 seats. Independent candidates won in three constituencies. In terms of seat tally Warisan has 23, UMNO 14, Bersatu 11, PBS 7, Parti Solidariti Tanah Airku Rakyat Sabah (STAR) 6, DAP 6, Independents 3, PKR 2 and UPKO 1.

With that there are two immediate questions on everyone’s mind. First, who will be the next Sabah chief minister? Second, will the Prime Minister call for a general election (GE) soon after indicating about such possibility two weeks ago if GRS wins the Sabah state election? Historically, the chief minister comes from the party with the highest number of seats in the winning coalition but there is a fine line in this case between UMNO and Perikatan Nasional as the latter has 17 seats including STAR while the former’s coalition members inside BN did not win any seats. Thus, PBS could be the king maker in resolving this issue. If UMNO and Bersatu can agree amicably to the arrangement with the next election at federal level in mind, the 15 th GE should materialize very soon, putting an end to efforts by any party to prove their majority support in parliament.

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As such, even though a relief rally is expected in the immediate term, it could evaporate later, led by foreign selling, due to potential election uncertainty, both locally and the US. As indicated last week, defensive sectors like healthcare, gloves and utilities are likely to witness sustained interest as investors seek refuge from market uncertainties while construction and sin sectors such as gaming and brewery could face increased selling pressure.

Politics aside, Malaysia’s trade numbers for August and manufacturing PMI for September will be revealed this week. Both numbers are expected to show sustained month-on-month improvements, although year-on-year data remains weak, as the country slowly emerges from the negative effect of Covid-19 restrictions. Similarly, this week’s China PMI and the US ISM and non-farm payroll data for September are likely to show continuous improvement but the worsening rivalry between both countries is expected to cast a shadow on any signs of sustained recovery.

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Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed 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.

Kaladher Govindan – Head of Research

TA S ECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad

Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 203 2 5048 www.ta.com.my

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News In Brief Corporate

Kossan Rubber Industries Bhd 's shareholders have approved the group's one -fo r-one bonus issue involving 1.3bn shares. The ex-date for the bonus issue is Oct 9, with the entitlement date being Oct 12. Following the issuance, its share capital will increase to 2.6bn shares. (Bursa Malaysia/The Edge)

Bumi Armada Bhd (Not Rated) has secured two contracts with an estimated value of RM2.1bn from India’s state owned oil company Oil and Natural Gas Corporation Ltd relating to its floating production, storage and offloading vessel following the expiry of a previous contract. (Bursa Malaysia/The Sun)

Kenanga Investment Bank Bhd (Not Rated) has collaborated with Merchantrade Asia Sdn Bhd to introduce Malaysia’s first stockbroker e-wallet, Kenanga Money, which will be supported by a Visa prepaid card feature. (The Sun)

Serba Dinamik Holdings Bhd has inked a memorandum of understanding (MoU) with Huawei Technologies to develop digital solutions involving the adoption to the latter's cloud and artificial intelligence technology. The MoU is aimed at driving digital transformation to urban and rural areas in Malaysia, as well as in the oil and gas industry. (The Edge)

United Malacca Bhd is halting the operations of its 60%-owned Indonesian joint venture PT Wana Rindang Lestari in Sulawesi to address environmental issues highlighted by non- government organisations. The group said it has conducted an assessment on the soil and terrain of the land, and that an environmental assessment report has also been completed and submitted to the local authorities. (Bursa Malaysia/The Edge) Comment: According to management, the group is still in the initial stages of looking into the additional concerns raised. Note that the development of Sulawesi is still in the initial stage, thus not much concerns on the operation. Maintain Sell on the stock with an unchanged TP of RM4.83 .

Tenaga Nasional Bhd has secured the approval for TNB Power Generation Sdn Bhd’s (TPGSB) application for new generation licences for seven power stations, to be held by TPGSB pursuant to the proposed internal reorganisation. (Bursa Malaysia/Bernama)

Pentamaster Corporation Bhd (Not Rated) is seeing buoyant business amid a pick-up in the technology sector, according to its group chairman Choon Bin Chuah. (The Star)

Destini Bhd (Not Rated) is raising RM78.2mn through a private placement involving 20% of its issued share capital for working capital. Of the proceeds, RM50.0mn will be used for new projects and RM28.2mn for existing projects. The proposed placement is expected to be completed in the 1Q2021. (Bursa Malaysia/The Edge)

Mynews Holdings Bhd (Not Rated) is geared up for a better set of performance towards end of the year by taking extensive measures to introduce new business models and enhance its concept, as well as improving infrastructure for efficiency . (The Star)

FGV Holding Bhd 's subsidiary FGV Prodata Systems Sdn Bhd has secured a three-year hardware maintenance contract with Ministry of Defense. The three-year contract starts from September this year. (New Straits Times)

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Parlo Bhd (Not Rated) has inked a tripartite agreement to exclusively provide employment agency-related services for migrant workers from a source country to the destination country. The employment agency services under the collaboration include travel logistics and dormitory arrangements and arrangement for medical examinations for the workers. The agreement was entered with Myanmar-based Diamond Palace Group of Companies Ltd and Agensi Pekerjaan Seaview Hectare Sdn Bhd. (Bursa Malaysia/Bernama)

Tiong Nam Logistics Holdings Bhd has allocated RM200.0mn in capital expenditure to expand its logistics and warehousing services division. The group said 90% of the capex would be used to build a 190,000 sq ft warehouse in Senoko, Singapore, as well as another 2 warehouses in Pasir Gudang and Kempas in Johor that are currently in the planning stages. (The Sun)

Sanichi Technology Bhd (Not Rated) is raising RM31.9mn through a private share placement to fund its maiden property development in Melaka. The development comprises serviced apartments and a shopping mall, with a gross development value of RM180.0mn. The group will be placing 524.8mn shares or 30.0% of its issued share capital to third-party investors. The proposed placement is expected to be completed in the 4Q2020. (Bursa Malaysia/The Edge)

NTPM Holdings Bhd 's (Not Rated) net profit for 1QFY21 skyrocketed to RM14.6mn, from RM503,000 a year earlier. The robust performance was mainly due to lower raw material costs, such as virgin pulp and waste paper prices, and overhead costs. However, its revenue declined by 3.1% YoY to RM179.3mn from RM184.9mn due to lower sales. The group declared a first interim dividend of 0.8sen/share. (Bursa Malaysia/The Edge)

Gamuda Bhd slipped into the red for 4QFY20 with a RM17.3mn loss as compared to a net profit of RM179.0mn due a one-off asset impairment following the shutdown of one of its Industrialised Building System factories. Quarterly revenue fell 38.2% YoY to RM926.5mn from RM1.5bn a year earlier. For FY20, the group’s net profit fell 46.9% YoY to RM371.7mn from RM700.2mn a year earlier, while revenue contracted 19.8% YoY to RM3.7bn from RM4.6bn. (Bursa Malaysia/The Edge)

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News In Brief Economy

Malaysia RON95/RON97 Up Five Sen, Diesel Four Sen Higher for Sept 26 -Oct 2 The retail petrol prices of RON95 and RON97 both went up by five sen per litre, while that of diesel cost four sen more for the period of Sept 26 to Oct 2. The Ministry of Finance (MoF) in a statement said based on the weekly retail pricing of petroleum products using the Automated Price Mechanism (APM) formula, the new price per litre of RON95 is RM1.68, followed by RON97 at RM1.98 and diesel at RM1.71. It said the government would continue to monitor the trends of global crude oil prices and take appropriate measures to ensure the people’s welfare and well-being continue to be protected. (The Edge)

Malaysian Rubber Council Takes on Expanded Role Along with Rebranding The Malaysian Rubber Export Promotion Council (MREPC), an agency under the Ministry of Plantation Industries and Commodities (MPIC), has been rebranded as the Malaysian Rubber Council (MRC) with immediate effect. This change comes with an expanded role as it seeks to drive the growth of Malaysia’s rubber product industry. In a statement, the MRC said it had received regulatory approval for the name change following a rebranding directive announced by Minister Datuk Dr Mohd Khairuddin Aman Razali in early August. Chief executive officer (CEO) Brandon Chan said the MRC’s wide-ranging business objectives now would also include strengthening the domestic rubber market with the goal of building capacity within the downstream rubber industry.

Chan said apart from strengthening the export and domestic markets, the MRC would also identify new opportunities for human capital development and look at adoption of advanced technology as well as moving the industry towards enhanced sustainability. He said a RM20mn fund for automation and green technology had been allocated to encourage local industry members to move towards automation and the Fourth Industrial Revolution (IR 4.0) as well as renewable energy resources. Meanwhile, he said another RM36mn fund was allocated recently to encourage downstream rubber companies to employ more locals. (The Edge)

Asia China's I ndustrial Profits Grow for Fourth Straight Month Profits at China’s industrial firms grew for the fourth straight month in August, buoyed in part by a rebound in commodities prices and equipment manufacturing, the statistics bureau said. China’s recovery has been gaining momentum as pent-up demand, government stimulus and surprisingly resilient exports propel a rebound. Industrial firm profits grew 19.1% year-on-year in August to CNY612.81bn (US$89.8bn), the statistics bureau said. That compares with a 19.6% increase in July and is the fourth straight month of profit growth. However, industrial firms’ profits still face external pressures as rising tensions between Washington and Beijing cloud the global trade outlook. Raw material manufacturing profits increased by 32.5% in August, up from 14.7% in July, according to Zhu Hong, an official at the statistics bureau. This was driven in part by a rebound in the prices of international commodities such as crude oil and iron ore, he added. Meanwhile, profits of the general equipment-manufacturing sector notched up 37% in August on-year, with electrical machinery up by 13.3% over the same period. Economic indicators in August, ranging from exports to producer prices and factory output, all pointed to a further pickup in the industrial sector. (Reuters)

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Singapore Industrial Production Surprises with 13.7% Growth in August Singapore's factory output soared by a surprising 13.7% year on year in August, led by strong growth in electronics, according to Singapore Economic Development Board figures. The performance bodes well for overall gross domestic product (GDP) in the third quarter, with the economic contraction expected to ease, said economists. Greatly exceeding economists' expectations of 2.2% growth, the latest figure was a rebound from July's 7.6% fall, which had come on the back of a strong base effect. Excluding the volatile biomedical cluster, industrial production rose 15.3%. On a seasonally-adjusted, monthly basis, industrial production was up 13.9% in August, or 4.8% excluding biomedical manufacturing. The electronics cluster put in the strongest showing by far, with output up 44.2% year on year. This was mainly thanks to 56.9% growth in the semiconductors segment, supported by demand from cloud services, data centres and the 5G market. With August's figure, electronics output for the first eight months of the year rose 4.1% from the year-ago period. (The Business Times)

S&P Maintains India's Sovereign Ratings; Outlook Stable S&P Global Ratings affirmed credit ratings of India on Friday despite weakening fiscal settings and a record economic contraction caused by the global coronavirus pandemic. The agency maintained the rating at 'BBB-' citing the economy's above-average long-term real growth, sound external profile and evolving monetary settings. “India's democratic institutions promote policy stability and compromise, and also underpin the ratings,” the agency said. “These strengths are balanced against vulnerabilities stemming from the country's low per capita income and weak fiscal settings, including consistently elevated general government deficits and indebtedness ,” said S&P. The outlook on the ratings was stable as the agency expects India's economy to recover following the resolution of the Covid-19 pandemic, and that the country's strong external settings will act as a buffer against financial strains. After experiencing a record contraction in fiscal 2021, India's economic activity is set to begin to normalize in fiscal 2022, resulting in real GDP growth of about 10%, the agency assessed. (RTT)

United States U.S. Durable -Goods Orders Rise for Fourth Straight Month Orders for long-lasting factory goods increased for the fourth consecutive month in August, a sign of the manufacturing industry’s continued recovery from coronavirus pandemic-related disruptions. New orders for durable goods—products designed to last at least three years—rose 0.4% in August compared with July, the Commerce Department said. The August increase was at a slower pace than earlier in the summer, when orders rebounded following a collapse in demand from early in the pandemic. A closely watched proxy for business investment—new orders for nondefense capital goods excluding aircraft—also rose last month, increasing by 1.8%. Orders for computers, communications equipment and machinery all rose solidly in August, helping drive the overall gain. Weakness in motor vehicle, commercial-aircraft and defense orders weighed on overall gains. Cancellations of orders for Boeing Co.’s 737 MAX and other jetliners, as well as General Electric Co. and Pratt & Whitney engines boosted the net loss of the industry wide aircraft and parts business above US$27bn this year through August, according to Friday’s report. In August, orders excluding transportation were up 0.4% and orders excluding defense were up 0.7%. The pace of durable-goods orders can signal demand for manufactured products and the volume of forthcoming factory production. Following steep declines in March and April, orders jumped sharply in May, June and July as the economy reopened from coronavirus-related shutdowns. (WSJ)

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Euro-zone & United Eurozone M3 Growth Eases i n August Kingdom Eurozone money supply increased at a slower pace in August and credit to the private sector logged a steady growth, the European Central Bank reported. The broad monetary aggregate M3 expanded 9.5% on a yearly basis, slower than the revised 10.1% increase seen in July. M3 was expected to grow 10.2%. Likewise, annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, decreased to 13.2% from 13.5% in July. As regards the dynamics of credit, credit to euro area residents climbed 8 percent, following a 7.6% rise in the previous month. Credit to general government rose to 16.5% from 15.5% a month ago. Credit to the private sector increased at a steady pace of 5% in August. Adjusted loans to the private sector rose 4.6% versus 4.7% in July. Loans to households gained 3% and that to non-financial corporations climbed 7.1%. (RTT)

U.K. Budget Deficit Hits US$222bn Under Lockdowns U.K. government borrowing soared to GBP173.7bn (US$222bn) in the first five months of the fiscal year as the costs of the coronavirus pandemic continued to mount. The budget deficit in August alone was GBP35.9bn, the Office for National Statistics said. Britain now has borrowed more since a national lockdown was imposed in March than during the whole of the year following the 2008-09 financial crisis. The figures come a day after Chancellor of the Exchequer Rishi Sunak unveiled a GBP5.0bn plan to rescue millions of jobs and businesses from a winter crisis as a resurgence of Covid-19 threatens to derail the economy. The pandemic has wrought havoc with the public finances. Debt is now above GBP2.0tn and the deficit –- the amount the government needs to borrow to fund its spending -– is set to be approaching GBP400bn in the current fiscal year. At almost a fifth of gross domestic product, it would represent the largest gap in British peacetime. In 2009- 10, the deficit hit GBP57.7bn, or 10.1% of the economy. With Bank of England bond-buying keeping borrowing costs at record lows, the deficit is affordable for now but Sunak has said the public finances will have to be returned to a sustainable footing once the crisis is over - – a hint that Britain faces tax rises in the medium term. (Bloomberg)

UK Consumer Confidence Rises to Highest Since Lockdown British consumer confidence ticked up in September to its highest level since the coronavirus lockdown started in March, but it remains well below its pre-pandemic levels, a survey showed. The GfK Consumer Confidence Barometer rose unexpectedly to -25 in September from -27 in August. A poll of economists had pointed to an unchanged reading. The survey was conducted in the first half of the month - before Tuesday’s announcement of new social restrictions to curb a resurgence of the COVID-19 pandemic across the United Kingdom. Despite subdued confidence surveys, consumer spending in Britain has rebounded strongly since the initial shock of the lockdown in April, and retail sales are now higher than before the pandemic. But the prospect of rising unemployment makes many economists cautious, especially since finance minister Rishi Sunak confirmed that support for furloughed workers would be scaled back sharp from November onwards. (Reuters)

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News In Brief Share Buy-Back

Share Buy-Back: 25 September 2020

Total Treasury Company Bought Back Price (RM) Hi/Lo (RM) Shares BKAWAN 282,600 15.10/15.08 15.18/15.08 282,600 BONIA 7,300 0.53 0.53/0.525 10,547,700 CJCEN 149,400 0.35 0.355/0.345 4,284,000

10,386,000 COASTAL 60,000 0.62 0.62 GLOMAC 44,700 0.31/0.305 0.31/0.305 29,627,000 JCBNEXT 2,400 1.43/1.34 1.43/1.30 1,364,700 JOHOTIN 136,100 1.52/1.51 1.54/1.51 2,365,800

KERJAYA 45,000 1.00 1.00/0.995 3,750,766

KFIMA 9,800 1.48 1.49/1.46 3,067,700 MYEG 2,000,000 1.27/1.26 1.30/1.26 149,683,200

PANTECH 356,600 0.365/0.355 0.365/0.355 3,399,393 RANHILL 20,000 0.85 0.865/0.845 11,217,900 RUBEREX 6,622,000 5.52/5.33 5.54/533 1,162,500 TROP 1,268,000 0.845/0.825 0.845/0.815 60,334,541 UNIMECH 5,000 1.15 1.16/1.15 9,875,810 WILLOW 26,200 0.43 0.425/0.42 10,387,000 YINSON 175,000 5.68/5.75 5.68/5.75 31,303,500 Source: Bursa Malaysia

Conference call by TA RESEARCH – Remisiers’ Briefing Topic: Midday Talk with CEO: Johore Tin Berhad Speaker: Mr. Edward Goh Swee Wang Date: 01 October 2020 (Thursday)

Time: 12.30pm. Signing in of attendees (Please provide full name, Branch) Time: 12.45pm. Corporate Presentation Time: 1.15pm. Q&A session Time: 2.00pm. End of event

Note: We are transitioning towards using Microsoft Teams instead of Go-to-Meeting.

Please join the meeting from your computer, tablet or smartphone (if you have already installed the app) https://teams.microsoft.com/l/meetup- join/19%3ameeting_ZDNhZWY1ZGQtNTkyMy00ZGEzLTk2MDMtNDljY2I1MDkzOTBi%40thread.v2/0?context=%7b%22Tid%22%3a%2204568cdf -592a-4059-8720-352f06806b8d%22%2c%22Oid%22%3a%22af53c1b5-4c2a-40fb-a59f-292e4c11e7ab%22%7d

This briefing is an exclusive invitation to Remisiers, Dealers and selective personnel only (Limited to 250 pax on first come basis) Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed 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.

Kaladher Govindan – Head of Research

TA S ECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad

Menara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 203 2 5048 ww w.ta.com.my

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For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE

Company Share Price Target Price Market Cap. EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg % upside Recom Beta (RM) (RM) (RMm) FY20 FY21 FY20 FY21 FY20 FY21 High Price % Chg Low Price % Chg YTD 25-Sep-20 AUTOMOBILE BAUTO 1.40 1.53 9.3% Buy 1,627 1.22 8.6 8.8 16.2 15.9 5.3 4.1 2.32 -39.7 0.94 49.7 -33.3 MBMR 3.17 3.62 14.2% Buy 1,239 1.15 35.1 40.3 9.0 7.9 5.7 6.3 4.18 -24.2 2.50 26.8 -17.9 PECCA 1.24 0.89 -28.2% Sell 214 0.88 4.7 8.1 26.5 15.4 3.7 4.0 1.39 -10.8 0.68 83.7 13.8 SIME 2.40 2.43 1.3% Hold 16,323 1.01 15.0 15.0 16.0 16.0 4.2 4.4 2.42 -0.8 1.56 53.8 8.1 UMW 2.53 1.85 -26.9% Sell 2,956 1.79 15.5 26.9 16.4 9.4 1.6 1.6 4.95 -48.8 1.65 53.3 -43.7

BANKS & FINANCIAL SERVICES ABMB 2.18 2.10 -3.7% Sell 3,375 1.07 27.4 22.0 8.0 9.9 2.8 3.7 2.96 -26.4 1.48 47.3 -17.1 AFFIN 1.40 1.80 28.6% Buy 2,912 1.01 19.9 24.3 7.0 5.8 2.1 3.6 2.03 -31.0 1.25 12.0 -26.3 AMBANK 2.94 3.20 8.8% Hold 8,848 1.01 44.6 36.0 6.6 8.2 4.5 4.1 4.20 -30.0 2.82 4.3 -24.8 CIMB 3.06 3.20 4.6% Sell 30,364 1.02 15.8 29.0 19.4 10.6 2.6 4.9 5.40 -43.3 3.05 0.3 -40.6 HLBANK 14.84 15.30 3.1% Sell 32,169 1.07 115.1 114.5 12.9 13.0 2.4 2.7 17.76 -16.4 11.70 26.8 -14.2 MAYBANK 7.08 7.70 8.8% Hold 79,589 0.79 51.9 57.3 13.6 12.4 5.6 6.4 8.86 -20.1 7.00 1.1 -18.1 PBBANK 15.44 17.20 11.4% Hold 59,940 1.20 120.7 125.8 12.8 12.3 3.6 3.8 20.44 -24.5 12.58 22.7 -20.6 RHBBANK 4.60 5.40 17.4% Buy 18,446 0.97 46.4 57.2 9.9 8.0 3.9 4.8 5.98 -23.1 4.23 8.7 -20.4 BURSA 8.56 7.80 -8.9% Sell 6,925 1.19 35.2 25.2 24.3 34.0 4.3 2.7 10.98 -22.0 4.32 98.1 40.6

BUILDING MATERIALS ANNJOO 0.65 0.42 -35.4% Sell 351 1.67 -16.5 2.1 na 30.9 0.0 1.4 1.40 -53.6 0.42 56.6 -46.7 CHINHIN 1.38 0.40 -71.0% Sell 768 0.47 0.3 4.0 513.6 34.7 1.1 1.1 1.43 -3.5 0.40 245.0 91.7 CHINWEL 0.95 0.90 -4.8% Sell 273 1.18 7.4 13.9 12.7 6.8 1.6 5.8 1.78 -46.9 0.68 39.0 -31.5 CMSB 1.19 1.76 47.9% Buy 1,276 1.45 9.1 16.3 13.1 7.3 1.7 2.1 2.80 -57.5 0.83 43.4 -47.6 CSCSTEL 0.82 0.90 9.8% Hold 303 1.37 5.2 9.1 15.7 9.0 3.0 5.5 1.19 -31.1 0.54 51.9 -22.6 ENGTEX 0.47 0.47 0.0% Sell 206 0.49 0.5 2.2 102.9 21.7 1.0 1.1 0.87 -45.7 0.46 2.2 -37.3

CONSTRUCTION GADANG 0.40 0.35 -11.4% Sell 288 1.87 5.8 5.1 6.8 7.7 2.5 2.5 0.77 -48.7 0.23 75.6 -43.2 GAMUDA 3.25 3.50 7.7% Hold 8,169 1.35 20.7 26.7 15.7 12.2 1.8 3.7 4.30 -24.4 2.36 37.7 -16.7 GDB 0.58 0.73 25.9% Buy 363 1.23 4.3 6.0 13.6 9.6 3.4 3.4 0.80 -27.0 0.32 81.3 -5.7 IJM 1.37 1.48 8.0% Hold 4,961 1.40 6.9 2.3 19.8 59.5 2.2 2.9 2.33 -41.2 1.15 19.1 -36.9 INTA 0.35 0.40 12.9% Buy 187 1.29 1.3 3.6 27.1 9.7 0.7 2.1 0.40 -12.5 0.15 133.3 29.6 KAB 0.95 0.19 -80.0% Sell 879 0.84 0.9 1.2 103.4 80.2 0.7 0.4 1.22 -22.1 0.15 552.6 146.9 PESONA 0.24 0.24 0.0% Sell 163 1.08 0.3 2.4 83.5 9.7 0.0 4.3 0.30 -21.7 0.13 80.8 6.8 SUNCON 1.78 1.53 -14.0% Sell 2,295 0.99 6.2 9.6 28.8 18.6 2.5 3.9 2.10 -15.2 1.25 42.4 -6.8 WCT 0.40 0.45 13.9% Hold 557 1.86 -1.3 1.7 na 23.8 0.0 0.0 0.96 -58.9 0.24 62.8 -54.1 LITRAK 3.98 4.84 21.6% Buy 2,120 0.73 49.2 45.7 8.1 8.7 6.3 7.5 4.95 -19.6 3.30 20.6 -13.3

CONSUMER Brewery CARLSBG 20.64 24.50 18.7% Hold 6,311 1.15 65.2 89.8 31.6 23.0 2.8 4.4 39.17 -47.3 17.34 19.0 -29.6 HEIM 20.84 26.00 24.8% Buy 6,296 0.91 68.9 96.9 30.2 21.5 3.1 4.5 31.74 -34.3 17.30 20.5 -23.2 Retail AEON 0.76 1.25 64.5% Buy 1,067 1.00 6.6 8.9 11.6 8.6 5.3 5.3 1.66 -54.2 0.76 0.0 -46.5 AMWAY 4.98 6.00 20.5% Buy 819 0.63 28.3 31.7 17.6 15.7 5.5 5.5 6.00 -17.0 4.50 10.7 -11.5 F&N 32.80 42.00 28.0% Buy 12,030 0.64 120.8 132.4 27.2 24.8 2.0 2.1 35.68 -8.1 24.12 36.0 -5.9 FOCUSP 0.53 0.63 20.0% Buy 115 na 2.8 4.9 18.6 10.8 2.4 4.2 0.77 -31.8 0.29 81.0 41.9 HUPSENG 0.92 1.00 9.3% Hold 732 0.55 5.1 5.7 18.0 16.0 6.6 6.6 1.08 -15.3 0.75 22.8 1.7 JOHOTIN 1.52 2.10 38.2% Buy 469 1.22 13.1 17.0 11.6 9.0 3.9 4.6 1.90 -20.0 0.98 55.1 -12.1 LHI 0.65 0.91 40.0% Buy 2,373 na 3.6 5.1 18.1 12.8 1.7 2.3 1.00 -34.7 0.43 51.2 -26.1 NESTLE 139.80 143.00 2.3% Sell 32,783 0.49 247.0 290.3 56.6 48.2 1.8 2.0 149.90 -6.7 120.00 16.5 -4.9 PADINI 2.31 2.90 25.5% Buy 1,520 0.93 13.0 18.5 17.7 12.5 3.9 5.0 3.85 -40.0 1.78 29.8 -28.7 POHUAT 1.51 1.77 17.2% Buy 372 1.16 17.1 20.4 8.8 7.4 4.6 4.6 1.59 -5.0 0.69 118.8 -0.7 QL 9.93 10.50 5.7% Hold 16,111 0.67 14.8 16.6 67.3 60.0 0.5 0.5 10.20 -2.6 6.50 52.8 22.1 SCIENTX 9.92 11.80 19.0% Buy 5,117 0.78 81.2 84.9 12.2 11.7 2.3 2.7 10.38 -4.4 5.96 66.4 5.0 Note: SCIENTX proposed 2 for 1 bonus issue shares and 1 for 5 free warrants. For more detail please refer to 21-Sept-20 report. SIGN 0.32 0.60 87.5% Buy 79 1.71 0.0 3.4 na 9.3 5.6 5.6 0.53 -39.0 0.16 106.5 -28.9 Tobacco BAT 10.02 12.50 24.8% Buy 2,861 0.77 92.0 97.7 10.9 10.3 9.0 9.5 21.12 -52.6 9.26 8.2 -33.6

GAMING Casino GENTING 3.27 4.89 49.5% Buy 12,591 1.27 -9.6 21.6 na 15.1 2.0 5.5 6.12 -46.6 2.91 12.4 -44.7 GENM 2.10 2.93 39.5% Buy 11,872 1.07 -13.7 12.1 na 17.4 2.9 3.8 3.26 -35.7 1.83 14.8 -33.9 NFO BJTOTO 2.00 2.40 20.0% Buy 2,702 0.73 10.1 17.1 19.8 11.7 5.2 8.0 2.65 -24.6 1.92 4.1 -21.7

HEALTHCARE Hospitals/ Pharmaceutical DPHARMA 3.14 1.97 -37.3% Sell 2,217 0.81 8.4 9.4 37.4 33.4 1.8 1.9 4.32 -27.3 1.05 199.0 121.1 IHH 5.23 6.00 14.7% Hold 45,905 0.72 6.2 10.8 84.9 48.3 0.4 0.6 5.94 -12.0 4.55 14.9 -4.4 KPJ 0.85 0.95 12.4% Buy 3,616 0.78 2.8 4.3 29.8 19.8 1.3 2.0 1.04 -18.7 0.72 17.4 -10.6 Rubber Gloves HARTA 17.00 25.97 52.8% Buy 58,269 1.29 12.7 77.9 134.4 21.8 0.5 2.0 21.16 -19.7 5.08 234.6 210.2 KOSSAN 13.80 20.60 49.3% Buy 17,649 1.10 90.8 128.8 15.2 10.7 2.6 3.7 19.50 -29.2 4.00 245.0 231.7 Note: KOSSAN proposed bonus issue shares on the basis of 1 for 1. For more detail please refer to 26-August-20 report. SUPERMX 8.59 11.83 37.7% Hold 22,139 1.98 20.3 91.7 42.2 9.4 0.9 4.1 12.22 -29.7 0.65 1231.8 1136.0 TOPGLOV 8.80 10.80 22.7% Buy 71,551 1.25 22.9 125.4 38.4 7.0 1.3 7.8 9.77 -9.9 1.40 527.1 461.7

INSURANCE TUNEPRO 0.33 0.24 -27.3% Sell 248 1.33 3.1 6.1 10.8 5.4 3.7 7.4 0.63 -47.2 0.20 65.0 -41.6

MEDIA ASTRO 0.80 1.07 33.8% Buy 4,172 1.08 12.6 9.8 6.4 8.2 9.4 6.3 1.50 -46.7 0.71 13.5 -37.0 MEDIA PRIMA 0.17 0.17 0.0% Sell 189 1.12 -3.9 -1.7 na na 0.0 0.0 0.49 -64.9 0.11 54.5 -39.3 STAR 0.33 0.26 -20.0% Sell 236 1.21 -4.1 -1.3 na na 0.0 0.0 0.54 -39.8 0.23 44.4 -33.0

For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE

Company Share Price Target Price Market Cap. EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg % upside Recom Beta (RM) (RM) (RMm) FY20 FY21 FY20 FY21 FY20 FY21 High Price % Chg Low Price % Chg YTD

OIL & GAS LCTITAN 1.96 1.64 -16.3% Sell 4,455 1.39 0.4 10.0 465.9 19.6 0.0 0.5 2.75 -28.7 0.98 101.0 -18.7 MHB 0.32 0.35 11.1% Sell 504 1.77 -10.4 0.6 na 55.1 0.0 0.0 0.97 -67.5 0.26 23.5 -63.8 MISC 7.39 9.00 21.8% Buy 32,987 0.69 58.8 49.9 12.6 14.8 4.1 4.1 9.37 -21.1 6.52 13.3 -11.1 PANTECH 0.36 0.24 -32.4% Sell 266 1.25 4.7 1.6 7.5 21.8 5.3 1.4 0.54 -33.6 0.25 43.4 -27.6 PCHEM 5.50 5.10 -7.3% Sell 44,000 1.52 14.4 31.3 38.1 17.6 1.3 2.5 7.80 -29.5 4.00 37.5 -25.2 SERBADK 1.66 2.10 26.5% Buy 5,597 1.52 16.5 18.8 10.1 8.8 2.4 3.0 2.52 -34.1 1.02 62.7 -24.5 UZMA 0.47 0.58 23.4% Sell 13,556 1.68 0.0 3.3 na 14.1 0.0 0.0 1.14 -58.8 0.31 51.6 -51.3 VELESTO 0.13 0.14 7.7% Sell 1,068 1.81 -0.4 -0.2 na na 0.0 0.0 0.41 -68.3 0.09 44.4 -65.8

PLANTATIONS FGV 1.20 1.12 -6.7% Sell 4,378 1.42 -0.4 2.3 na 52.8 1.7 1.7 1.59 -24.5 0.72 67.8 -21.1 IJMPLNT 1.80 1.68 -6.7% Sell 1,585 1.42 4.0 6.5 45.5 27.9 1.7 2.2 2.48 -27.4 1.01 78.2 -23.7 IOICORP 4.45 4.02 -9.7% Sell 27,887 0.95 12.6 15.5 35.2 28.8 1.8 2.8 4.82 -7.7 3.41 30.5 -3.5 KLK 22.64 24.01 6.1% Hold 24,417 0.96 72.3 97.1 31.3 23.3 1.9 2.2 25.40 -10.9 17.40 30.1 -8.7 SIMEPLT 5.02 5.59 11.4% Hold 34,561 na 9.3 19.7 54.0 25.5 1.6 2.6 5.63 -10.8 3.82 31.4 -7.9 TSH 0.99 1.31 32.3% Buy 1,366 1.50 4.9 6.0 20.4 16.6 2.0 2.0 1.59 -37.7 0.56 76.8 -35.7 UMCCA 4.70 4.83 2.8% Sell 986 0.72 -11.9 11.8 na 39.8 1.7 1.7 5.45 -13.8 4.00 17.5 -12.1

PROPERTY GLOMAC 0.31 0.36 16.1% Buy 239 0.65 3.2 2.3 9.6 13.3 3.2 3.2 0.38 -18.4 0.24 29.2 -15.1 HUAYANG 0.24 0.27 12.5% Sell 84 1.08 -20.6 -2.2 na na 0.0 0.0 0.41 -40.7 0.15 65.5 -33.3 IBRACO 0.49 0.58 18.4% Sell 243 0.70 5.9 8.8 8.3 5.6 1.5 3.1 0.72 -31.9 0.23 113.0 -29.5 IOIPG 0.90 1.06 17.8% Buy 4,956 0.93 11.2 9.9 8.0 9.1 1.7 3.3 1.28 -29.7 0.83 9.1 -27.4 MAHSING 0.72 0.81 13.3% Hold 1,736 1.55 2.4 4.3 29.8 16.5 1.7 2.8 0.91 -21.4 0.31 134.4 1.4 SIMEPROP 0.59 0.65 10.2% Sell 4,012 1.34 1.1 4.3 51.6 13.8 0.8 2.5 0.94 -37.2 0.48 24.2 -35.5 SPSETIA 0.74 1.06 43.2% Buy 3,002 1.60 4.3 10.1 17.2 7.3 0.7 3.4 1.63 -54.6 0.55 34.5 -53.8 SUNWAY 1.39 1.58 13.7% Buy 6,813 0.88 7.1 10.5 19.7 13.2 3.2 5.4 1.87 -25.7 1.25 11.2 -22.8 Note: SUNWAY proposed 1 for 5 rights issue ICPS, at an issue price of RM1.00 per rights share. For more detail please refer to 28-May-20 report. REIT CMMT 0.62 0.78 25.8% Hold 1,274 0.60 2.7 4.6 22.8 13.6 5.0 8.0 1.10 -43.6 0.62 0.8 -38.0 SUNREIT 1.60 1.61 0.6% Hold 4,712 0.55 7.8 8.1 20.6 19.8 4.6 4.7 1.96 -18.4 1.49 7.4 -12.1

POWER & UTILITIES MALAKOF 0.97 1.11 15.0% Buy 4,716 0.91 7.5 7.7 12.8 12.6 6.9 7.1 1.02 -5.4 0.65 49.6 10.9 PETDAG 19.76 17.20 -13.0% Sell 19,631 0.69 29.4 74.6 67.2 26.5 1.3 3.0 26.41 -25.2 17.50 12.9 -13.8 PETGAS 16.38 18.80 14.8% Buy 32,412 0.75 97.1 97.2 16.9 16.8 7.2 4.2 18.45 -11.2 12.97 26.3 2.1 TENAGA 10.88 11.40 4.8% Hold 62,067 0.93 75.6 85.8 14.4 12.7 3.8 4.3 13.43 -19.0 10.36 5.0 -14.4 YTLPOWR 0.68 0.62 -8.1% Sell 5,181 1.07 1.0 2.6 69.8 26.2 0.0 0.0 0.85 -20.1 0.48 40.6 -12.3

TELECOMMUNICATIONS AXIATA 2.97 4.40 48.1% Buy 27,233 0.96 6.3 10.3 47.2 28.8 1.8 3.0 4.75 -37.5 2.97 0.0 -28.2 DIGI 4.02 4.50 11.9% Hold 31,256 0.79 16.9 19.4 23.8 20.7 4.0 4.6 4.78 -15.9 3.82 5.2 -9.9 MAXIS 4.97 5.20 4.6% Sell 38,880 0.70 18.9 21.4 26.3 23.2 3.6 4.0 5.70 -12.8 4.59 8.3 -6.6 TM 4.15 4.35 4.8% Hold 15,660 1.02 25.9 27.7 16.0 15.0 3.1 3.3 4.58 -9.4 3.09 34.3 8.6

TECHNOLOGY Semiconductor & Electronics ELSOFT 0.62 0.70 13.8% Hold 413 1.37 2.4 4.1 25.3 14.8 3.0 5.1 1.08 -43.1 0.39 59.7 -25.9 INARI 2.25 2.40 6.7% Hold 7,360 1.23 4.7 7.0 47.7 31.9 2.0 2.6 2.40 -6.3 0.90 150.0 32.4 MPI 17.90 20.90 16.8% Buy 3,560 0.83 76.9 93.5 23.3 19.1 1.5 1.6 19.28 -7.2 7.39 142.2 56.5 N2N 0.70 1.15 65.5% Buy 415 1.58 3.6 4.1 19.1 16.9 4.3 4.3 1.00 -30.2 0.34 102.5 -0.9 SKPRES 1.80 1.90 5.6% Buy 1,688 1.20 6.1 9.6 29.7 18.7 1.7 2.7 1.81 -0.6 0.66 172.7 32.4 UNISEM 3.49 4.28 22.6% Buy 2,538 0.88 15.6 21.6 22.3 16.2 2.3 2.9 4.00 -12.8 1.53 128.1 61.6

TRANSPORTATION Airlines AIRASIA 0.67 0.70 4.5% Sell 2,239 1.74 -60.7 8.8 na 7.7 0.0 0.0 1.95 -65.6 0.50 34.0 -60.6 AIRPORT 4.89 7.05 44.2% Buy 8,113 1.04 -28.4 10.9 na 45.1 0.0 2.0 8.84 -44.7 3.92 24.7 -35.7 Freight & Tankers PTRANS 0.29 0.31 8.8% Buy 543 1.08 2.2 3.3 13.2 8.7 3.5 3.5 0.33 -12.8 0.12 130.1 22.4 TNLOGIS 0.39 0.55 41.0% Buy 174 0.81 -0.1 0.7 na 57.1 0.0 0.0 0.53 -26.4 0.26 50.0 -22.8 WPRTS 3.86 3.82 -1.0% Sell 13,163 0.60 15.5 15.3 24.9 25.2 2.4 3.0 4.54 -15.0 2.97 30.0 -8.3

SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE

Company Share Price Target Price Market Cap. EPS (cent) PER (X) Div Yield (%) 52week 52week % Chg % upside Recom Beta (S$) (S$) (S$m) FY20 FY21 FY20 FY21 FY20 FY21 High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 20.01 23.30 16.4% Buy 50,808 1.16 188.0 194.1 10.6 10.3 3.7 5.0 26.80 -25.3 16.65 20.2 -22.7 OCBC 8.46 8.90 5.2% Sell 37,268 1.05 80.6 87.7 10.5 9.6 3.8 4.3 11.23 -24.7 7.80 8.5 -23.0 UOB 19.10 23.50 23.0% Buy 31,886 1.11 188.7 201.2 10.1 9.5 4.2 5.2 26.77 -28.7 17.12 11.6 -27.0

PLANTATIONS WILMAR 4.40 5.48 24.5% Buy 28,154 0.86 26.5 26.2 16.0 16.0 2.8 2.5 4.95 -11.1 2.83 55.5 6.8

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. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.