Friday, March 06, 2015 TA Securities FBMKLCI: 1 ,806.09 A Member of the TA Group

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

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DDaaiillyy BBrriieeff Market View, News In Brief: Corporate , Economy , a n d Share Buybacks

THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* TA Research Team Coverage Tel: +603 – 2072 1277 [email protected] www.taonline.com.my

Market View Drifting Ahead of US Monthly Jobs Data

The local market slipped into correction mode on Thursday, with banks and oil & gas stocks leading falls, dampened by regional weakness after China set its GDP growth at 7% for 2015, which is the lowest growth target in 11 years. The KLCI lost 19.45 points to close lower at 1,806.09, off an early high of 1,819.67 and low of 1,805.80, as losers swarmed gainers 556 to 288 on active turnover of 2.13bn shares worth RM2.37bn.

Key Hurdle From 1,828/1,831, Support at 1,810 Stocks are likely to drift with investors sidelined ahead of the weekend while awaiting the US monthly jobs data tonight for fresh leads. Key upside hurdles for the index stays at the 200- day moving average level of 1,828 and the 4 February high of 1,831, with subsequent hurdle from 1,840, the 76.4% Fibonacci Retracement (FR) level. Immediate support is from the mid Bollinger band now at 1,810, followed by 1,800, with better supports at 1,778, the 50%FR level, and 1,750, the 38.2%FR, and stronger chart supports at 1,730 and 1,716, the 23.6%FR level.

Take Profit on Dialog Group & Muhibbah Engineering Hook-down technical momentum on Dialog implies near-term correction potential towards the 38.2%FR (RM1.50), with a breakdown to target stronger support from the 23.6%FR (RM1.40) before stalling. Overhead resistance from the 61.8%FR (RM1.68) matches the upper Bollinger band. A stochastics sell signal on Muhibbah increases correction potential towards the 38.2%FR (RM2.01), cushioned by the lower Bollinger band (RM1.96), with immediate resistance from the upper band (RM2.40) capping upside.

Most Asian Markets Lower After China Lowers Growth Target Asian stocks were mostly lower early Thursday, following a weak lead from Wall Street, and as China set its gross domestic product (GDP) growth target at 7 percent for 2015. This will be the mainland's lowest growth target in 11 years, according to a speech by Premier Li Keqiang at the annual National People's Congress (NPC), down from 7.5 percent last year, a sign of the government's increased focus on quality over quantity as it seeks to overhaul the country's growth model. Overnight, U.S. stocks closed lower amid a series of economic data that continued to show moderate growth ahead of Friday's nonfarm payrolls report. China's Shanghai Composite index fell nearly 1 percent to hit a one-week low as blue-chip stocks like the property developers and financials fell. Bank of Communications and Bank of China led losses within the banking sector, down over 2 percent each.

Meanwhile, Australia's S&P ASX 200 index notched down to a one-week low as banking stocks continue to come under pressure following the central bank's decision to put rates on hold. Commonwealth Bank of Australia, Australia & New Zealand Banking and Westpac made losses of 0.4 percent each, while National Australia Bank ticked 0.3 percent lower. However, Japanese share prices ticked up on Thursday despite softness in Wall Street shares the previous day helped by optimism on the Japanese economy and bolstered by the Bank of Japan's buying earlier this week. But trading volume was the lowest so far this year as

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TA Securities A Member of the TA Group 6-Mar-15

investors looked to the European Central Bank's policy meeting later in the day and the U.S. employment data on Friday.

Wall Street Closes Up Slightly Ahead Of Key Jobs Report U.S. stocks closed modestly higher in light trading on Thursday as investors held back on big bets ahead of Friday's jobs report, which is expected to be a big factor in influencing the timing of a Federal Reserve interest rate hike. Focus on the report was heightened as many investors see it as one of the most import economic indicators due to be released ahead of the Fed's meeting in mid-March. On economic front, initial jobless claims rose to 320,000 in the latest week, above the 295,000 estimate. The disappointing numbers came after a weaker-than-expected private payrolls report on Wednesday and ahead of Friday's monthly employment report. A separate report showed new orders for U.S. factory goods unexpectedly fell in January for a sixth month, a sign of weakness in the manufacturing sector. Drawing some investor attention was a news conference by European Central Bank President Mario Draghi who said that the bank’s program of government-bond purchases will begin March 9. He said he expected the program to boost economic growth and return inflation to its target of just less than 2 percent. Biotechnology stocks pulled ahead of the broader market, with the Nasdaq Biotechnology index rising 2.2 percent to an all-time high. The push higher followed news of AbbVie Inc’s acquisition of cancer biotech Pharmacyclics Inc. in a deal valued at about $21 billion.

The Dow Jones Industrial Average gained 38.82 points, or 0.21 percent, to 18,135.72, the S&P 500 added 2.51 points, or 0.12 percent, to 2,101.04 and the Nasdaq Composite gained 15.66 points, or 0.32 percent, to 4,982.80.

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News In Brief Corporate Bina Puri Holdings Bhd has secured a RM128.5mn contract to construct a spa resort complex in Kuala Terengganu, called the Movenpick Spa Resort. The project will be undertaken by its wholly-owned subsidiary Bina Puri Sdn Bhd. It will involve the construction, supervision, testing and commissioning as well as completing eight blocks of two-storey, three-storey and five-storey high buildings, nine pavilions, a spa and a multi- purpose building and related facilities (Package 2). (StarBiz)

Tenaga Nasional Bhd ’s (TNB) 1,071-megawatt (MW) power plant in Seberang Perai, , currently the world’s largest and most efficient gas turbine plant utilising Siemens H-Class technology, is on track for commercial operation on Jan 1, 2016. The RM2.5bn project is currently 94% completed, said TNB in a statement. (BusinessTimes)

Pos Malaysia Bhd ’s five-year transformation plan is bearing fruit, with a substantial increase in the company’s revenue to RM1.3bn for financial year 2013 from RM800mn in 2012. The plan, initiated in 2013, outlined 29 business initiatives, including banking on higher profits from its profitable courier and logistics segment by leveraging on its wide Pos Laju network and extracting further synergies with DRB-Hicom Bhd’s wholly-owned unit, Kuala Lumpur Airport Services. (BusinessTimes)

Tan Sri Mokhzani Mahathir and close associate Yeow Kheng Chew, better known as KC, have no plans to sell their combined stake of 9.12% in oil and gas (O&G) giant SapuraKencana Petroleum Bhd (SapKen) following their resignations from the board of the company. Mokhzani and Yeow collectively hold a 9.12% stake in SapKen through Khasera Baru Sdn Bhd, which is the company’s fourth largest shareholder. (StarBiz)

RHB Capital Bhd (RHBCap) has identified a successor and will seek Bank Negara’s approval for the person to helm the fourth largest financial institution by assets following the resignation of current group managing director Kellee Kam. Simultaneously, the board of RHBCap has accepted the resignation of Kam, who will continue to carry out his responsibilities until May 4, the effective date of his resignation. (StarBiz)

PPB Group Bhd will spend RM535mn on capital expenditure (capex) over the next two to three years, focusing on expanding the Golden Screen Cinemas (GSC) chain. The company, has set aside RM283mm under the film exhibition and distribution division to open 11 new cinemas, upgrade existing cinema equipment, extend three existing cinemas, as well as possibly increasing its investment in Vietnamese company Galaxy Studio Joint Stock Co. (StarBiz)

Alam Maritim Resources Bhd has received a letter of award from Carigali Sdn Bhd to provide spot charter marine vessels. It said the two-year contract, which started on Jan 29, 2015, has an extension option of one year. (StarBiz)

Malaysian Resources Corp Bhd (MRCB), which recorded its highest revenue and dividend payout since 2009, is expecting four key projects to sustain growth this year. They are the 9 Seputeh project along the Old Klang Road, PJ Sentral and Q Sentral office block project in Petaling Jaya and The Sentral Residences at Kuala Lumpur Sentral. (StarBiz)

Sunway Bhd ’s property division is aiming to achieve RM1.7bn in sales this year. The property development division’s joint-managing director said the property division’s unbilled property sales of RM2.8bn as of Dec 31 last year, combined with its remaining 3,362 acres of landbank with a gross development value of RM49bn, would keep the division busy for the next 12 years. (StarBiz)

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Bank Simpanan Nasional (BSN) is confident its newly -established Auto Finance Centre (AFC) will contribute up to 10% of the bank’s total income within three years. The AFC, which started operations last year, was the bank’s strategic move in response to market and consumer demand. (BusinessTimes)

Maybank is committed to see further growth in retail small and medium enterprise (SME) financing in 2015 after recording a strong 43% rise to RM7.5bn in 2014. As at Dec 31, 2014, its business banking grew 6.5% while the group market share in the SME industry, in terms of financing stood at 20.4%. (BusinessTimes)

MK Land Holdings Bhd , will launch two projects this year with a combined Gross Development Value of RM600mn, says Group Chief Executive Officer Lau Shu Chuan. “There are still some pending approvals pertaining to the projects but once we obtain them, we will launch the projects between April and June,” he told reporters at the company’s Chinese New Year celebration. (BusinessTimes)

UK-based fund Mondrian Investment Partners Ltd has raised its shareholding in AMMB Holdings Bhd to 155.577mn shares or 5.16%. A filing with Bursa Malaysia showed the fund acquired 1.033mn shares from the open market on March 3. (StarBiz)

1Malaysia Development Bhd (1MDB) will be left as a skeletal structure and possibly dissolved under a debt repayment plan in which most of its assets will be sold, sources said. The power and property fund, with assets worth US$14bn (RM51bn), was hit by losses last year and nearly defaulted on a loan payment. (StarBiz)

Harvest Court Industries Bhd 's RM129mn contract with Sagajuta () Sdn Bhd to build a commercial and residential development in , Sabah has been terminated by mutual consent. The contract was for the construction of a 28-storey medium-cost apartment block, eight units of 2-storey shoplots, a common facilities podium and a five-level car park, which would form part of Sagajuta’s RM500mn 1Sulaman project in Kota Kinabalu. (TheEdge)

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News In Brief Economy A s i a Malaysia BNM maintains OPR at 3.25%, economy to remain on steady growth path Bank Negara Malaysia maintained Overnight Policy Rate (OPR) at 3.25% at its monetary policy committee meeting on Thursday. “At the current level of the OPR, the stance of monetary policy remains accommodative and supportive of economic activity,” it said in a statement. It expected the Malaysian economy to still remain on a steady growth path. BNM said investment activity was expected to remain resilient, with broad-based capital spending by both the private and public sectors, thus cushioning the lower investment in the oil and gas sector. “While export growth will be affected by the lower commodity prices, the performance of manufactured exports is expected to improve. “The prospects are therefore for the Malaysian economy to still remain on a steady growth path,” it said. (Source: StarBiz)

U.S. U.S. Factory Orders U.S. factory orders fall for sixth straight month New orders for U.S. factory goods unexpectedly fell in January, posting their sixth straight monthly decline, a sign of weakness in the manufacturing sector. The Commerce Department said on Thursday new orders for manufactured goods slipped 0.2% after a revised 3.5% decline in December. The department also said orders for non-defense capital goods excluding aircraft - seen as a measure of business confidence and spending plans – rose 0.5% instead of the 0.6% advance reported last month. Manufacturing has been hurt by softening demand in Europe and Asia as well as a strong dollar and lower crude oil prices, which have caused some energy companies to either delay or cut back on capital expenditure projects. Unfilled orders at factories fell 0.2% in January, declining for a second straight month. Shipments of non-defense capital goods orders excluding aircraft, used to calculate business equipment spending in the gross domestic product report, were revised up to show a 0.1% gain in January instead of a 0.3% fall. (Source: Reuters)

U.S. Jobless Claims Jobless Claims Rise to Highest Level Since May Initial jobless claims increased by 7,000 to a seasonally adjusted 320,000 in the week ended Feb. 28. The number of people filing continuing claims for unemployment benefits increased by 17,000 to 2.42 million for the week ended Feb. 21. Continuing claims are reported with a one-week lag. Initial claims slipped below 300,000 last summer and mostly remained below that level for the rest of 2014. The economy added an average of 336,000 jobs a month since November, the strongest such stretch of job creation since 1997. And unemployment fell in every state and in the nation’s capital last year, something that hasn’t happened since 1984, according to a Labor Department report released Wednesday. The overall jobless rate stood at 5.7% last month. The Labor Department said U.S. nonfarm productivity decreased at a 2.2% annual rate during the fourth quarter of 2014, a potential drag on the economy. The revised figure is a downgrade from the earlier reported drop of 1.8% but roughly in line with a consensus forecast decline of 2.3%. Unit labor costs in the nonfarm business sector increased 4.1% during the period. Productivity growth averaged 2.8% per quarter from 1995 to 2005 but has since registered about half that pace. (Source: Wall Street Journal)

Europe Euro Area Eurozone retail PMI points to further drop in sales Markit’s Eurozone Retail PMI® pointed to a further decrease in sales in February, with the rate of decline slightly faster than in the opening month of the year. That reflected the combination of a steeper downturn in sales in France and a reduced rate of growth in Germany. At 46.4, down from January’s 46.6, the headline Markit Eurozone Retail PMI – which tracks month-on-month changes in like-for-like retail sales across the bloc’s biggest three economies combined – was below the 50.0 no-change mark for the eighth successive month in February, and at its lowest level since September of last year. (Source: Markit Economics)

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Euro-Area Bonds Rally as Draghi Caps Buying at ECB Deposit Rate The 25-member Governing Council left the main refinancing rate at 0.05% at its meeting on Thursday. The decision was predicted by all 54 economists in a Bloomberg News survey. The deposit rate remained at minus 0.2% and the marginal lending rate at 0.3%. (Bloomberg)

Germany Construction output rises at solid pace and business optimism hits four-year High February data signalled a return to output growth in Germany’s construction sector, as both housing and commercial activity increased. New orders declined at a much weaker rate than in January and purchasing activity rose further. Employment levels expanded for the second month running and optimism towards the 12-month outlook improved substantially. Meanwhile, input cost inflation slowed to the weakest since 2009. The seasonally adjusted Germany Construction Purchasing Managers’ Index® (PMI®) – which is based on a single question asking respondents to report on the actual change in their total construction activity compared to one month ago – returned to growth territory in February, signalling an expansion in total construction output in Germany. The index rose from 49.5 in January to a three-month high of 53.1. Anecdotal evidence suggested that favourable weather conditions accounted for some of the rise in construction activity. (Source: Markit Economics)

Retail sales rise at slower pace February saw a continuation of growth in retail sales in Germany. This was highlighted by the seasonally adjusted Germany Retail PMI – which measures month-on-month changes in sales on a like-for-like basis – remaining above the 50.0 no change mark. However, at 51.5, down from 52.3 in January, the pace of expansion eased to the weakest in four months. Where companies noted a rise in retail sales since one month previously, they commented on favourable weather conditions and the launch of new products. Latest survey data also signalled a rise in retail sales on an annual basis. The rate of growth picked up slightly since January, but remained muted overall. German retailers further added to their payroll numbers in February. The rate of job creation was little-changed from January and faster than the average over the current 57-month sequence of rising employment. February data signalled a further increase in average prices paid for purchases by German retailers. (Source: Markit Economics)

German Factory Orders Decline in Sign of Manufacturing Weak Spot German factory orders fell in January, signalling a potential weak spot in the recovery of Europe’s largest economy. Orders, adjusted for seasonal swings and inflation, dropped 3.9% after a revised increase of 4.4% in December, data from the Economy Ministry in Berlin showed on Thursday. The typically volatile number compares with a median estimate of a 1% decline in a Bloomberg News survey. Orders slid 0.1% from a year earlier. German economic growth accelerated in the fourth quarter as domestic spending benefited from lower oil prices and exporters were supported by a weaker euro, and the European Central Bank’s quantitative easing is likely to provide another boost. Even so, relatively weak external demand risks damping the expansion. (Source: Bloomberg)

U.K. Bank of England Keeps Key Rate at Record Low The Bank of England held its benchmark interest rate steady Thursday, marking six years since officials cut borrowing costs to record-low levels to combat a deep recession. The BOE said its rate-setting Monetary Policy Committee kept the central bank’s benchmark rate at 0.5%, after its monthly policy meeting. The panel also agreed to leave the size of the BOE’s bond portfolio unchanged at £375bn ($572.4bn). The decision wasn’t a surprise. Sterling and U.K. government bonds were broadly unmoved. The BOE lowered its main interest rate in March 2009 to 0.5%, the lowest level since its foundation in 1694, and began buying bonds in an effort to stave off the threat of deflation and depression. The U.K. suffered a deep and prolonged recession after the financial crisis; later data would show the economy shrank 6% in 2008 and early 2009, and would only exceed its pre-crisis peak in late 2013. (Source: Wall Street Journal)

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Share Buy-Back: 05 -Mar 2015 Total Treasury Company Bought Back Price (RM) Hi/Lo (RM) Shares ADVPKG 2,000 2.17 2.17/ 2.07 1,388,016 AMPROP 25,000 0.79 0.785/ 0.78 4,067,300 BKAWAN 18,500 18.34/ 18.20 18.40/ 18.20 28,375,200 FRONTKN 100,000 0.18 0.18/ 0.17 4,966,600 GRANFLO 15,000 0.28 0.275/ 0.27 2,025,800 HAIO 10,000 2.36/ 2.34 2.36/ 2.33 7,065,888 N2N 10,000 0.87 0.87/ 0.86 7,569,600 PARKSON 420,500 2.36/ 2.34 2.36/ 2.31 73,423,929 PRTASCO 17,600 1.57/ 1.55 1.65/ 1.55 937,000 RCECAP 150,000 0.32/ 0.315 0.32/ 0.315 52,619,900 SUBUR 100 1.91 1.91/ 1.84 20,875,600 UNIMECH 3,400 1.49/ 1.46 1.49/ 1.44 9,414,566

Source: Bursa Malaysia

Disclaimer The information in this report has been obtained from sources believed to be relia ble. Its accuracy 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. for TA S ECURITIES HOLDINGS BERHAD (14948-M) MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 (A Participating Organisation of Bursa Malaysia Securities Berhad) Kaladher Govindan – Head of Research

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For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE

Company Share Price Target Price EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg BETA (RM) (RM) FY15 FY16 FY15 FY16 FY15 FY16 High Price % Chg Low Price % Chg YTD 05-Mar-15 AUTOMOBILE EPMB 0.79 0.83 0.73 13.1 14.4 6.0 5.5 2.5 2.5 0.98 -19.4 0.68 16.2 2.6 MBMR 3.30 3.60 0.84 34.7 35.5 9.5 9.3 2.7 3.2 3.39 -2.7 2.60 26.9 13.8 UMW 11.00 11.90 1.01 88.7 91.7 12.4 12.0 4.1 4.3 12.68 -13.2 10.00 10.0 0.4

BANKS & FINANCIAL SERVICES AFG 4.75 4.30 1.11 37.7 40.4 12.6 11.8 4.2 4.2 5.23 -9.2 4.08 16.5 1.1 AFFIN 2.92 3.05 0.82 31.3 32.0 9.3 9.1 5.1 5.1 3.88 -24.6 2.68 9.0 0.7 AMBANK 6.34 6.80 1.07 63.5 59.9 10.0 10.6 4.1 4.4 7.35 -13.7 5.97 6.2 -3.9 CIMB 5.72 6.60 1.30 49.8 52.7 11.5 10.9 4.4 4.6 7.56 -24.3 5.05 13.3 2.9 HLBANK 14.30 14.10 0.66 118.9 131.1 12.0 10.9 2.9 2.9 14.96 -4.4 13.70 4.4 2.3 MAYBANK 9.21 11.50 1.09 74.3 79.7 12.4 11.6 6.5 6.5 10.20 -9.7 8.25 11.6 0.4 PBBANK 18.62 20.30 0.83 126.3 133.8 14.7 13.9 2.9 2.9 20.93 -11.0 17.40 7.0 1.7 RHBCAP 7.92 9.00 1.00 88.1 91.0 9.0 8.7 1.5 1.5 9.70 -18.4 7.05 12.3 3.9 BURSA 8.31 8.40 0.96 35.1 39.9 23.7 20.8 4.3 4.8 8.36 -0.6 7.21 15.3 2.6

CONSTRUCTION BPURI 0.57 0.67 1.11 17.1 6.8 3.3 7.1 7.1 0.80 -29.4 0.50 13.0 4.6 GAMUDA 5.30 4.81 1.20 31.1 32.8 17.0 16.1 2.6 2.8 5.36 -1.1 4.28 23.8 5.8 IJM 7.10 7.79 0.87 36.4 54.0 19.5 13.1 2.1 2.5 7.25 -2.1 5.65 25.7 8.1 NAIM 3.06 3.26 1.95 41.8 40.1 7.3 7.6 1.3 1.3 4.42 -30.8 2.78 10.1 2.7 SENDAI 0.69 1.10 1.62 6.9 11.0 10.1 6.3 2.9 2.9 1.14 -39.5 0.49 42.3 -11.5 WCT 1.60 1.52 1.10 13.3 13.7 12.0 11.6 3.8 3.8 2.35 -31.8 1.38 15.9 0.6 LITRAK 3.91 4.18 0.53 28.6 38.5 13.7 10.2 4.6 5.1 3.98 -1.8 3.39 15.3 5.7

CONSUMER Brewery CARLSBG 13.38 11.89 0.78 64.3 67.2 20.8 19.9 4.6 4.8 13.54 -1.2 10.36 29.2 14.0 GUINESS 14.50 13.55 0.65 87.0 105.5 16.7 13.7 5.4 6.6 14.76 -1.8 12.02 20.6 17.9 Retail AEON 3.13 3.27 1.13 19.0 21.5 16.5 14.6 1.8 2.1 4.33 -27.7 2.64 18.6 -0.6 AMWAY 11.58 12.92 0.50 51.0 70.5 22.7 16.4 4.0 5.4 12.28 -5.7 10.00 15.8 11.3 F&N 18.56 19.44 0.57 82.6 91.4 22.5 20.3 3.3 3.7 19.12 -2.9 15.42 20.4 6.4 NESTLE 74.90 59.00 0.45 243.2 258.9 30.8 28.9 3.0 3.0 75.20 -0.4 63.50 18.0 9.3 PARKSON 2.36 2.51 0.55 12.3 14.1 19.2 16.7 2.3 2.6 3.17 -25.6 2.17 8.8 -5.6 POHUAT 2.24 2.62 0.86 26.7 30.1 8.4 7.5 4.0 4.5 2.43 -7.8 1.13 98.2 54.5 QL 3.80 4.68 1.00 15.3 17.9 24.9 21.3 1.1 1.3 3.82 -0.5 3.02 25.8 15.2 Tobacco BAT 68.96 73.15 0.86 336.8 346.8 20.5 19.9 4.8 4.9 74.40 -7.3 58.00 18.9 5.9

GAMING Casino GENTING 8.50 11.67 1.19 54.4 59.7 15.6 14.2 1.2 1.4 10.22 -16.8 8.30 2.4 -4.2 GENM 4.13 4.66 0.92 28.5 28.1 14.5 14.7 2.1 2.3 4.68 -11.8 3.78 9.3 1.5 NFO BJTOTO 3.36 4.51 0.97 27.2 27.6 12.3 12.2 8.0 8.3 3.95 -14.9 3.29 2.1 -4.3

HEALTHCARE Hospitals IHH 5.48 5.10 0.97 11.4 13.9 47.9 39.3 0.7 0.9 3.95 -14.9 3.29 2.1 -4.3 KPJ 4.05 4.60 0.84 16.1 16.7 25.1 24.2 2.0 2.0 5.60 -2.1 3.63 51.0 13.7 Rubber Gloves HARTA 8.00 7.30 0.61 27.0 35.8 29.6 22.4 1.5 2.0 8.10 -1.2 5.72 39.9 13.8 KOSSAN 5.32 6.30 0.49 30.3 34.5 17.6 15.4 2.6 2.9 5.52 -3.6 3.63 46.6 19.0 SUPERMX 2.08 2.05 1.00 18.8 22.5 11.1 9.2 2.4 2.7 2.85 -27.0 1.58 31.6 23.8 TOPGLOV 4.99 4.95 0.70 33.4 36.8 14.9 13.6 3.3 3.7 5.90 -15.4 4.21 18.5 10.4 KAREX 4.13 4.60 na 15.6 19.1 26.5 21.6 0.6 0.7 4.24 -2.6 2.64 56.4 22.2

INDUSTRIAL SCIENTX 6.98 8.56 1.13 76.0 88.0 9.2 7.9 3.4 3.9 7.63 -8.5 5.46 27.8 -1.6 SKPRES 0.73 1.10 1.06 4.7 9.6 15.5 7.6 3.4 5.5 0.84 -13.2 0.31 137.7 13.3 UNIMECH 1.46 1.45 1.06 37.7 72.3 3.9 2.0 0.0 0.0 1.78 -18.0 1.40 4.3 -2.0

MEDIA MEDIA PRIMA 1.78 2.01 1.50 16.6 16.8 10.7 10.6 6.7 6.7 2.64 -32.6 1.61 10.6 1.1 STAR 2.61 2.52 0.54 21.0 21.8 12.4 12.0 6.9 6.9 2.79 -6.4 2.09 24.9 13.0

OIL & GAS ICON 0.77 0.71 na 8.4 13.0 9.1 5.9 0.0 0.0 2.19 -65.1 0.62 24.4 2.7 MHB 1.29 1.47 1.41 12.3 11.9 10.5 10.9 3.9 3.9 4.16 -69.0 1.27 1.6 -27.5 PANTECH 0.76 0.93 1.47 8.8 11.1 8.6 6.8 4.6 5.9 1.15 -34.3 0.71 7.1 -1.9 PCHEM 5.39 4.76 1.06 36.6 40.4 14.7 13.3 3.4 3.7 7.01 -23.1 4.65 15.9 -1.1 PERISAI 0.63 0.65 2.33 6.4 13.9 9.9 4.5 0.0 0.0 1.67 -62.3 0.38 65.8 38.5 SKPETRO 2.45 3.96 1.79 22.9 26.7 10.7 9.2 1.4 0.0 4.80 -48.9 2.02 21.3 5.6 UMWOG 2.57 2.94 na 17.3 19.3 14.8 13.3 0.7 0.7 4.27 -39.8 1.91 34.6 9.4

For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE

Company Share Price Target Price EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg BETA (RM) (RM) FY15 FY16 FY15 FY16 FY15 FY16 High Price % Chg Low Price % Chg YTD

PLANTATIONS BSTEAD 4.64 6.14 0.62 33.1 35.9 14.0 12.9 2.6 2.8 5.66 -18.0 4.38 5.9 -3.7 FGV 2.20 2.48 na 13.8 16.4 16.0 13.5 4.1 4.1 4.70 -53.2 2.02 8.9 0.9 IJMPLNT 3.78 4.26 0.84 13.8 17.7 27.4 21.4 2.1 2.6 4.03 -6.2 3.12 21.2 4.4 IOICORP 4.66 4.22 1.06 17.4 22.2 26.8 21.0 2.6 2.8 5.36 -13.1 4.36 6.9 -2.9 KLK 22.66 20.47 1.05 93.5 118.1 24.2 19.2 2.3 2.8 25.14 -9.9 19.60 15.6 -0.6 KWANTAS 1.92 1.60 0.29 5.2 7.3 36.7 26.4 1.0 1.0 2.30 -16.5 1.90 1.1 -4.0 SIME 9.32 10.06 0.73 36.3 50.9 25.7 18.3 2.9 3.2 9.80 -4.9 8.78 6.2 1.4 UMCCA 6.32 7.57 0.50 33.0 43.3 19.2 14.6 3.3 4.3 7.53 -16.1 6.00 5.3 0.8

PROPERTY CRESNDO 2.42 2.35 1.40 24.3 34.3 9.9 7.0 6.2 6.6 3.11 -22.2 2.27 6.6 5.2 GLOMAC 0.98 0.87 1.15 10.6 13.4 9.2 7.3 4.1 4.6 1.21 -19.4 0.90 8.3 -0.5 HUAYANG 2.04 2.86 1.10 38.9 41.4 5.2 4.9 6.4 6.9 2.52 -19.0 1.71 19.3 -0.5 IOIPG 2.11 2.68 na 11.1 14.8 19.0 14.2 2.8 3.8 2.83 -25.5 2.04 3.4 -10.4 Note: IOIPG 1 for 6 rights issue shares, at an issue price of RM1.90 per rights share. Ex-Target price RM2.85. MAHSING 2.03 2.60 1.11 19.5 22.6 10.4 9.0 3.7 4.4 2.38 -14.7 1.85 9.8 -1.8 SNTORIA 1.08 1.35 0.82 13.6 19.0 7.9 5.7 1.9 1.9 1.61 -32.9 0.84 29.3 -12.2 SPSETIA 3.45 3.62 0.54 24.3 31.0 14.2 11.1 3.5 4.5 3.65 -5.5 2.88 19.8 4.5 SUNWAY 3.41 3.97 1.14 34.7 34.9 9.8 9.8 3.5 3.7 3.67 -7.1 2.78 22.7 3.6 REIT SUNREIT 1.67 1.75 0.46 8.5 10.3 19.5 16.3 5.4 6.4 1.68 -0.6 1.30 28.5 9.9 CMMT 1.50 1.58 0.67 8.6 9.6 17.3 15.7 6.2 6.8 1.66 -9.6 1.34 11.9 4.9

POWER & UTILITIES PETDAG 19.08 17.08 0.98 74.3 78.7 25.7 24.2 3.1 3.3 30.43 -37.3 14.40 32.5 12.7 PETGAS 23.04 24.45 1.17 87.9 88.2 26.2 26.1 2.5 2.5 24.96 -7.7 20.60 11.8 4.0 TENAGA 14.64 16.25 1.11 117.3 113.6 12.5 12.9 2.4 2.3 16.96 -13.7 11.22 30.5 6.1 YTLPOWR 1.57 1.94 0.89 15.0 15.0 10.4 10.5 0.6 0.6 1.70 -7.6 1.42 10.6 6.1

TELECOMMUNICATIONS AXIATA 7.13 7.07 0.86 33.5 37.3 21.3 19.1 3.6 4.0 7.29 -2.2 6.38 11.8 1.1 DIGI 6.35 6.76 0.88 26.7 29.4 23.7 21.6 4.1 4.6 6.65 -4.5 5.00 27.0 2.9 MAXIS 7.07 6.58 0.71 30.3 32.3 23.3 21.9 4.3 4.5 7.30 -3.2 6.21 13.8 3.2 TM 7.17 8.96 0.73 23.5 25.4 30.5 28.3 3.6 3.7 7.60 -5.7 5.67 26.5 4.2

TECHNOLOGY Semiconductor & Electronics IRIS 0.30 0.36 0.78 1.0 2.2 28.3 13.5 1.5 1.5 0.61 -51.6 0.22 34.1 18.0 MPI 6.49 7.60 0.98 42.8 54.7 15.2 11.9 3.1 3.1 6.51 -0.3 3.98 63.1 43.3 UNISEM 2.13 2.75 0.98 16.0 19.8 13.3 10.8 2.8 2.8 2.20 -3.2 0.99 116.2 19.7

TRANSPORTATION Airlines AIRASIA 2.41 3.40 0.99 24.3 30.8 9.9 7.8 2.5 3.3 2.94 -18.0 2.19 10.0 -11.4 AIRPORT 6.88 6.76 1.08 16.9 26.2 40.6 26.2 1.4 2.1 8.18 -15.9 5.96 15.4 7.0 Note: AIRPORT proposed 1 for 5 rights issue shares. For more detail please refer to 12.11.14 report. Freight & Tankers MISC 8.39 8.86 0.97 42.2 46.2 19.9 18.2 1.2 1.2 8.56 -2.0 6.01 39.6 16.2 WPRTS 3.58 3.89 na 16.5 18.2 21.7 19.6 3.4 3.8 3.67 -2.5 2.45 46.1 6.5

SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE

Company Share Price Target Price EPS (cent) PER (X) Div Yield (%) 52week 52week % Chg Beta (S$) (S$) FY15 FY16 FY15 FY16 FY15 FY16 High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS 19.48 21.60 1.05 172.0 183.5 11.3 10.6 3.0 3.0 20.67 -5.8 15.65 24.5 -5.4 OCBC 10.39 12.10 1.00 99.4 107.5 10.4 9.7 4.7 5.7 10.65 -2.4 8.84 16.2 -0.7 UOB 23.02 26.60 1.11 219.1 238.9 10.5 9.6 3.3 3.3 24.72 -6.9 19.75 16.5 -6.2

PLANTATIONS WILMAR 3.24 3.75 0.80 26.8 28.6 12.1 11.3 2.5 2.8 3.56 -9.0 2.92 11.0 0.0 IFAR 0.71 0.87 1.00 7.6 8.8 9.4 8.1 0.4 0.5 1.11 -35.7 0.66 7.6 -2.1

BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Required Rate of Return of 10% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.