December 2012 / January 2013

Contents

Daiwa Asia Research Team by discipline and sector ...... p.3

Highlighted disciplines/sectors

Economics | Asia-Pacific ex-Japan ...... p.4

Small & Medium Caps | Asia-Pacific ex-Japan ...... p.5

Technology – Semiconductors | Asia-Pacific ex-Japan ...... p.6

Power — Utilities/ Power Equipment/ Renewables | Asia-Pacific ex-Japan ...... p.7

Autos & Auto Parts | Asia-Pacific ex Japan ...... p.8

Property | Hong Kong/China and Singapore ...... p.10

Transportation and Infrastructure | Asia-Pacific ex Japan ...... p.11

Other sectors/disciplines

Technology – Hardware | Asia-Pacific ex-Japan ...... p.13

Banks | Asia-Pacific ex-Japan ...... p.15

Gaming & Lodging | Hong Kong and China ...... p.17

Consumer | Korea and India ...... p.17

Internet / Telecommunications | Asia-Pacific ex-Japan ...... p.18

Metals & Mining | Greater China and India ...... p.19

Conglomerates | Philippines ...... p.19

Industrials | Hong Kong/China and Korea ...... p.20

Oil and Gas | Asia-Pacific ex Japan ...... p.21

Strategy and Quantitative | Asia-Pacific ex Japan ...... p.22

Corporate Access ...... p.23

Major events in 2012 ...... p.24

Daiwa Asia Research Team by market ...... p.25

Daiwa Asia Sales Team by market ...... p.27

December 2012 / January 2013

Daiwa Asia Research Team by discipline and sector

Regional Research Head Nagahisa MIYABE Regional Research Co-Head Hiroaki KATO

Discipline

Economics Chief Economist (Asia-Pacific ex-Japan) Mingchun SUN Economics (Asia-Pacific ex-Japan) Kevin LAI Economics (China) Chi SUN Economics (Asia-Pacific ex-Japan) Christie CHIEN

Equity Strategy Equity Strategy (Asia-Pacific ex-Japan) John HETHERINGTON Equity Strategy (Korea) Chang H LEE Equity Strategy (Taiwan) Mark CHANG Equity Strategy (India) Punit SRIVASTAVA

Quantitative Research Quantitative Research (Asia-Pacific ex-Japan) Jibo MA

Small & Medium Caps Small & Medium Caps (Asia-Pacific ex-Japan) Mark CHANG Small & Medium Caps (Asia-Pacific ex-Japan) John CHOI Small & Medium Caps (Taiwan) Rita HSU

Sector

Autos & Auto Parts Autos & Auto Parts (Asia-Pacific ex-Japan, Korea) Sung Yop CHUNG Autos & Auto Parts (Korea) Jun Yong BANG Autos & Auto Parts (China) Jeff CHUNG Autos & Auto Parts (India) Navin MATTA

Banks Banks (Hong Kong, China) Grace WU Banks (China) Leon QI Banks (Korea) Anderson CHA Banks (Taiwan) Jerry YANG Banks (India) Punit SRIVASTAVA Banks (ASEAN) Srikanth VADLAMANI Banks (Philippines) Danielo PICACHE

Conglomerates Conglomerates (Philippines) Rommel RODRIGO

Consumer Consumer (Korea) Sang Hee PARK Consumer (India) Mihir SHAH

Gaming & Lodging Gaming and Leisure (Hong Kong, China) Bing ZHOU Gaming and Leisure (Korea) Francis KIM

Industrials Industrials, Infrastructure (Korea) Mike OH Industrials (Hong Kong, China) Joseph HO

Internet Internet (Asia-Pacific ex-Japan, Korea) Thomas Y KWON

Metals & Mining Metals & Mining (China) Felix LAM Metals & Mining (China) Joey CHEN Metals & Mining (India) Deepak PODDAR

December 2012 / January 2013

Oil and Gas Oil and Gas (China, ASEAN) Adrian LOH Oil and Gas (India) Nirmal RAGHAVAN

Power Power (Hong Kong, China) Dave DAI Power (India) Saurabh MEHTA

Property Property, REITs (Hong Kong, China) Jonas KAN Property, REITs (Singapore) David LUM

Technology — Semiconductors Technology – Semiconductors (Asia-Pacific ex-Japan) Eric CHEN Technology – Semiconductors (Korea) Jae H LEE

Technology — Hardware Technology – Hardware (Regional) Pranab Kumar SARMAH Technology – Hardware (Greater China) Birdy LU Technology – Hardware (Greater China) Christine WANG Technology – Hardware (Taiwan) Chris LIN

Telecommunications Telecommunications (ASEAN & India) Ramakrishna MARUVADA

Transportation and Infrastructure Transportation and Infrastructure (Asia-Pacific ex-Japan) Kelvin LAU Transportation and Infrastructure (Korea) SoYoung WANG

December 2012 / January 2013

Highlighted disciplines/sectors Economics Small & Medium Caps Technology – Semiconductors Power — Utilities/ Power Equipment/ Renewables Autos & Auto Parts Property Transportation and Infrastructure

December 2012 / January 2013

Economics | Asia-Pacific ex-Japan

Mingchun SUN Key coverage Asia ex-Japan economies, with Head of China Research; Chief Economist (Regional) a particular focus on China and Dr. Mingchun Sun has 6 years’ experience as an economist in the ASEAN brokerage industry and 6 years’ experience as a central banker. He

joined Daiwa in 2010. He was ranked No. 3 Asia Economist in the 2012 II Asia Research Survey. In 2012, he was the first to identify a nascent recovery in China, though he maintains his long-term cautious view.

: (852) 2773 8751 | : [email protected]

Kevin LAI Key coverage Asia ex-Japan economies, with Deputy Head of Regional Economics; Economist (Regional) a particular focus on Hong Kevin has 16 years’ experience as an economist at brokerages and Kong, Korea and India banks. In the latest polls, he and his team were 5th in Asiamoney (Asia, 2011) and 11th in II (Economics & HK, 2012). In 1Q12, he argued intra- Asia demand weakness would form another leg down for regional growth. In July, he warned about the US fiscal cliff and expected more risk aversion. But he is not negative all round – he expected ASEAN to be resilient and policy stimulus to protect growth there. : (852) 2848 4926 | : [email protected]

Chi SUN Key coverage China economy Economist (China) Dr. Chi Sun has 3 years’ experience as a China economist in the brokerage industry. She joined Daiwa in June 2012. Her recent publications include reports on China’s export outlook, inflation outlook and the renminbi exchange rate.

: (852) 2848 4427 | : [email protected]

Christie CHIEN Key coverage Asia ex-Japan economies, with Economist (Taiwan) a particular focus on Taiwan Christie Chien joined Daiwa in 2010. Her recent publications include and ASEAN reports on the growing influence of Mainland tourists and their impact on Asian economies, and a series of reports on the rise of ASEAN economies.

: (852) 2848 4482 | : [email protected]

2012 reports: highlights

26 June 2012: China Economy: Mini stimulus under way 9 August 2012: China Economy: Hidden recovery

25 September 2012: Regional Economy: QE3: friend or foe? 16 July 2012: The power of Mainland tourists 6 November 2012: The rise of ASEAN economies

2013 Outlook . As the G3 continues to limp along, we expect Asia to hold up better on the back of China’s cyclical recovery and a pick-up in domestic demand. . Economic headwinds will start from the middle of 2013 as China’s policy tightening kicks in and a slew of European problems resurface. . While we expect less excitement on the policy front, there should also be less scope for GDP growth disappointment than in 2012.

December 2012 / January 2013

Small & Medium Caps | Asia-Pacific ex-Japan

Mark CHANG, CFA Key stock coverage Ginko (8406 TT) Regional Head of Small and Medium Caps Also covers Strategy (Taiwan) China Outfitters (1146 HK) Xingda (1899 HK) Mark has 12 years’ experience covering Asian small caps, and has been consistently ranked in the small-cap category of II polls. He joined Daiwa in Hong Kong in 2010, returned to Taiwan two years later as head of research there. His conviction Buy on Ginko International, the leading contact lens brand in China, was the first such call by an international brokerage. : (886) 2 8758 6245 | : [email protected]

John CHOI Key stock coverage Techtronic Industries (669 HK) Head of Multi-Industries (Hong Kong, China) Also covers Internet (China) Shenzhou International (2313 HK) Vtech (303 HK), Texwinca (321 HK) John has been with Daiwa for 2 years covering regional small/mid-cap companies and China Internet companies. He was previously with BNP Trinity (891 HK) Paribas and Merrill Lynch covering small/mid-cap companies, and worked in the China/Korea Internet and mobile gaming industry for 3 years. He was a runner-up in the II small/mid-cap category for 2010 and 2011). His top picks in 2012, Techtronic Industries and Shenzhou Int’l, sharply outperformed the HSI and MSCI Asia ex-Japan Small Cap Index. : (852) 2773 8730 | : [email protected]

2012 reports: highlights

Mark Chang 31 May 2012: Taiwan Contact Lens Sector: Initiation: all eyes on China

John Choi 7 December 2012: Discovery: Asia small-cap weekly 17 January 2012: Texwinca (321 HK): Initiation: retail story wears thin

2013 Outlook . We continue to prefer companies with high earnings visibility as we go into 2013, regardless of the overall macro situation in China and rest of the world. . Beneficiaries of structural change within their industries stand to be long-term winners. . Key stocks to watch in 2013: Techtronic Industries, Shenzhou Int’l, Chaowei Power, Chailease, Gamevil, Paradise.

December 2012 / January 2013

Technology – Semiconductors | Asia-Pacific ex-Japan

Eric CHEN Key stock coverage TSMC (2330 TT) Pan-Asia/Regional Head of Regional IT/Electronics UMC (2303 TT) Eric joined Daiwa in 2010 and has 16 years’ experience covering the MediaTek (2454 TT) regional semiconductor sector. He is consistently ranked in the II and Asiamoney polls and was No.2 in the II poll and in the top 3 in the Spreadtrum (SPRD US) Asiamoney poll in 2012. In 2012, Eric was the first to highlight the ASE (2311 TT) significant smartphone growth story in China, MediaTek’s long-term margin recovery and the implications of TSMC’s aggressive capex plan on its 2012 earnings growth. : (852) 2773 8702 | : [email protected]

Jae H. LEE Key stock coverage Samsung Electronics (005930 KS) Tech Hardware and Memory Chips (Korea) SK Hynix (000660 KS) Jae joined Daiwa in 2000 and has been working as tech analyst in LG Electronics (066570 KS) Korea for more than 17 years. He specialises in large-cap electronics SFA Engineering (056190 KS) and covers some of the smaller, high-growth companies. Jae knows Iljin Display (020760 KS) the sector well and has strong relationships with many corporates.

: (82) 2 787 9173 | : [email protected]

2012 reports: highlights

Eric Chen 9 November 2012: China Handset Food Chain: What’s on the menu for 2013? 26 April 2012: TSMC (2330 TT): What's next after strong guidance? 31 July 2012: MediaTek (2454 TT): Time to buy MediaTek

Jae H. Lee 8 March 2012: Display Technology MadeEasy: Through the looking glass 12 July 2012: Samsung Electronics (005930 KS): Hands-on with the Galaxy S III

2013 Outlook . We believe that rapidly growing Apple, Samsung, and China smartphone shipments represent a compelling opportunity for the semiconductors industry, and that the leading-edge players will keep outperforming amid this mature industry. . The technology and capex investment gap between the leading players and their tier-2 peers is likely to widen, while TSMC and Samsung will gain market share with their leading-edge technology for communications applications. . Leading companies’ (MediaTek and Qualcomm) shipments should grow on the back of continued growth in the China smartphone market.

December 2012 / January 2013

Power — Utilities/ Power Equipment/ Renewables | Asia-Pacific ex Japan

Dave DAI, CFA Key stock coverage ENN Energy (2688 HK) Regional Head of Clean Energy and Utilities China Coal (1898 HK) Dave has 7 years’ experience covering the HK/China utilities sector. Shanghai Electric (2727 HK) Before joining Daiwa in May 2010, he worked for CLSA for three years. He was ranked No.3 and No.4 among regional utilities analysts Cheung Kong Infrastructure (1038 HK) in 2011 and 2010 Asiamoney polls, and was ranked in the top 10 of China Resources Power (836 HK) the 2011 and 2010 Institutional Investor All-Asia Survey. In 2012, his top pick – ENN Energy – has largely outperformed the HSCEI Index. : (852) 2848 4068 | : [email protected]

Saurabh MEHTA Key stock coverage Coal India Limited (COAL IN) Power – Utilities (India) Also covers Utilities (India) Bharat Heavy Electricals Limited (BHEL IN) Saurabh covers the capital goods and power utilities sectors. Prior to Larsen & Toubro Limited (LT IN) joining Daiwa in 2008, he worked with CRISIL, a Standard & Poor’s NTPC Limited (NTPC IN) Company, in the Fixed Income Research Group. In January 2012, he downgraded BHEL to Underperform (from Hold), and the stock has Reliance Power Limited (RPWR IN) underperformed the Sensex by 27% YTD. Coal India, Saurabh’s preferred pick, has delivered a 22% absolute return YTD 2012. : (91) 22 6622 1009 | : [email protected]

2012 reports: highlights

Dave Dai 19 November 2012: China Thermal Coal Sector: Reassessing costs and benefits 3 January 2012: China City Gas Sector: 2012: A tale of gains and pain

Saurabh Mehta ◦ 27 January 2012: India T&D Sector: A 360 assessment

2013 Outlook . The structural changes China has made to its energy mix favour the natural gas utilities with direct exposure to sustainable gas volume growth. We are cautious about the wind-energy companies due to unresolved grid bottlenecks. . China’s economic recovery bodes well for the power-equipment suppliers and thermal coal producers, with demand for power capex and fuel seen returning in the next few quarters. . The Hong Kong market is slow and defensive, but we like companies with proven track records and the ability to acquire quality assets overseas at reasonable prices.

December 2012 / January 2013

Autos & Auto Parts | Asia-Pacific ex Japan / Korea

Sung Yop CHUNG Key stock coverage Hyundai Motor (005380 KS) Regional Head of Automobiles and Components Kia Motors (000270 KS) Also covers Shipbuilding and Steel (Korea) Hyundai Mobis (012330 KS) SY has 11 years’ experience covering Korean autos, and joined Hyundai Wia (011210 KS) Daiwa in 2005. Prior to this, he worked at Franklin Templeton as a buy-side analyst and as a management consultant for Arthur Hyundai Hysco (010520 KS) Anderson and AT Kearney. He is consistently ranked in II polls. In 2012, he was the first sell-side analyst to produce a differentiated thematic report on Japanese autos through "Trading Places", for which he swapped roles with Daiwa's Japan auto analyst for a week and then revisited his view of the Korean players. : (82) 2 787 9157 | : [email protected]

Jun Yong BANG Key stock coverage Hankook Tire (161390 KS) Automobiles and Components (Korea) Nexen Tire (002350 KS) Junyong has 5 years’ equity research experience covering the Korea industrial sector, ranging from refinery and chemicals to autos and shipbuilding. Prior to joining Daiwa in 2008, Junyong was with Macquarie Securities and ABN-AMRO. Junyong recently initiated coverage of the Korea tyre sector. : (82) 2 787 9168 | : [email protected]

2012 reports: highlights

Sung Yop Chung: 5 January 2012: Trading Places: Pan-Asia Autos 26 June 2012: Lost & Found: Pedal to the metal in the Deep South

Jun Yong Bang 26 November 2012: Korea Tyre Sector: Initiation: setting the wheels in motion

2013 Outlook . We look for the global auto industry to grow by 3% YoY in 2013, from 4% YoY growth in 2012, with weakness in Europe and Japan continuing. . We remain positive on the US auto industry for 2013, on strong pent-up demand, and expect the China auto industry to recover thanks to the government's stimulus package. . Our Pan-Asia top picks are Hyundai Motor, Toyota Motors and Brilliance, mainly as we envisage heightened earnings visibility for 2013.

December 2012 / January 2013

Autos & Auto Parts | China and India

Jeff CHUNG Key stock coverage Great Wall (2333 HK) Automobiles and Components (China) Geely (175 HK) Jeff joined Daiwa in 2010, and worked previously for ICBC, Bank of Brilliance (1114 HK) China and Bank of Tokyo Mitsubishi UFJ. His major calls in 2012 were Great Wall and Guangzhou Auto – on which he has been consistently DongFeng Motor (489 HK) ahead of the consensus view – as well as Geely. He was the first to Guangzhou Auto (2238 HK) offer an on-the-ground view of the potential for China auto exports through a series of reports based on his discussions with taxi drivers in Abu Dhabi and other cities. : (852) 2773 8783 | : [email protected]

Navin MATTA Key stock coverage Tata Motors (TTMT IN) Automobiles and Components (India) Maruti Suzuki (MSIL IN) Navin has been an equity analyst in India for more than six years. He Hero Motocorp (HMCL IN) has been with Daiwa since 2010. In 2012, his key contrarian call in the large-cap space was his upgrade on Tata Motors, based on JLR Bajaj Auto (BJAUT IN) benefiting from a long-term demand shift to SUVs. Eicher Motors (EIM IN)

: (91) 22 6622 8411 | : [email protected]

2012 reports: highlights

Jeff Chung 9 March 2012: China Auto Sector: Taxi tour (Day 3: Abu Dhabi) 2 May 2012: China Auto Sector: Six drivers beyond the inflection point

Navin Matta 31 August 2012: Tata Motors (TTMT IN): Favourable risk-reward profile

December 2012 / January 2013

Property | Hong Kong/China and Singapore

Jonas KAN, CFA Key stock coverage Wharf Holdings (4 HK) Head of Hong Kong and China Property The Link REIT (823 HK) Jonas has 20 years’ experience covering the Hong Kong property SHK Properties (16 HK) market, and joined Daiwa in 1994. He was StarMine’s No.1 earnings estimator in the Real Estate Sector in 2010, and is consistently Henderson Land (12 HK) ranked in II and Asiamoney polls. In 2012, Jonas was the first to point Hysan Development (14 HK) out Wharf’s considerable progress in its China investments and argued that Link REIT’s DPU growth is sustainable. : (852) 2848 4439 | : [email protected]

David LUM, CFA Key stock coverage Suntec REIT (SUN SP) Property/Real Estate Investment Trusts (REITs) (Singapore) CapitaCommercial Trust (CCT SP) David has covered the Singapore equity market for over 18 years, CapitaMall Trust (CT SP) and has been with Daiwa since November 1999. He has received StarMine analyst awards for the financials/real estate sectors in five Ascendas REIT (AREIT SP) of the past eight years. David has been positive on office S-REITs CapitaLand (CAPL SP) throughout 2012. He initiated coverage of Overseas Union Enterprise (OUE SP) in September 2012. : (65) 6329 2102 | : [email protected]

2012 reports: highlights

Jonas Kan Autumn 2012: A 2020 Vision for Hong Kong’s Office Market 23 April 2012: Hong Kong Property Sector: Short-term uncertainties, but positive structural forces at work

David Lum 23 August 2012: Singapore Property Developers: Rising risks and imbalances point to multi-year market decline 7 September 2012: Overseas Union Enterprise (OUE SP): Initiation: undervalued property play in all the right places

2013 Outlook . Hong Kong’s property market is transforming into one serving a mega-economy with a population of more than 1bn. . We see 2013 being the year of mid-range properties in Hong Kong, especially those that can be upgraded to serve as credible alternatives to premium ones. . There is no guarantee that the S-REIT sector’s outperformance in 2012 will continue, despite the S-REITs' attractive yields spreads, the strong Singapore dollar, and the resilience of their quarterly results. But we remain Positive on office S-REITs given our preference for value and our expectations for office rents to bottom by 1H13. . We are still negative on the Singapore residential sector. We think the risks of supply-demand imbalances in unsold inventory and the future supply of completed units will ultimately lead to a multi-year correction.

December 2012 / January 2013

Transportation and Infrastructure | Asia-Pacific ex Japan

Kelvin LAU Key stock coverage Air China (753 HK) Head of Transportation (Hong Kong, China) AirAsia (AIRA MK) Kelvin joined Daiwa in 2007 and was a top-10-ranked analyst in the Orient Overseas (316 HK) 2012 II poll (transportation sector). Before joining Daiwa, he spent more than 8 years in key roles in the Hong Kong/China airline China Shipping Container Line industry. Apart from the airlines, he covers AviChina and TravelSky. (2866 HK) In 2012, he was one of the first to highlight the extent of the recovery AviChina (2357 HK) in the shipping market for 3Q12, especially in the US. : (852) 2848 4467 | : [email protected]

2012 reports: highlights

Winter 2012: Aviation Primer: A guide to navigating Asia’s increasingly busy skies 22 November 2012: Asia Marine Sector: Why we are not concerned about potential overcapacity in 2013 16 July 2012: Asia Aviation Sector: Asian airlines set to fly higher

2013 Outlook . We expect a significant recovery in cargo demand in the US, while intra-Asia demand should be robust due to structural changes. . Passenger traffic growth in Asia should be stable, with a gradual recovery in premium traffic. . Capacity discipline is still high, especially in terms of cargo, which should support the industry’s profitability in 2013.

December 2012 / January 2013

Other sectors/disciplines Technology – Hardware Banks Gaming & Lodging Consumer Internet / Telecommunications Telecommunications Metals & Mining Conglomerates Industrials Oil and Gas Strategy and Quantitative

December 2012 / January 2013

Technology – Hardware | Greater China

Birdy LU Key stock coverage Hon Hai (2317 TT) Technology Hardware – Handsets and Components Foxconn Int’l (2038 HK Birdy has 10 years’ experience covering the smartphone/handset Largan (3008 TT) supply chain in Taiwan and China. Prior to this, he was a market specialist with the handset division of Philips (Taiwan). In 2012, he HTC (2498 TT) was the first analyst to turn positive on Foxconn Int’l and make the Catcher (2498 TT) contrarian call of long Catcher/short Foxconn Tech in October.

: (886) 2 8758 6248 | : [email protected]

Christine WANG Key stock coverage Advantech (2395 TT) Technology Hardware – PC Hardware Hiwin (2049 TT) Christine joined Daiwa in 2010 and has 7 years’ experience covering Chroma (2360 TT) the Taiwan technology hardware sector. Before pursuing a career in the financial industry, Christine worked in the semiconductor industry. Lenovo (992 HK) She is consistently ranked in II (mostly technology hardware and mid- Acer (2353 TT) small caps) and received 24 votes last year. In 2012, she was the first to issue a primer on the automation sector and the first to turn positive on Advantech (share price is up about 50%YTD 2012). : (886) 2 8758 6249 | : [email protected]

2012 reports: highlights

Birdy Lu 10 October 2012: Greater China Smartphone Sector: Focus on functions and features 27 November 2012: Greater China Smartphone Sector: The avengers?

Christine Wang Spring 2012: The Automation Primer: A guide to the future of industrial robotics, system integration and components 11 July 2012: Regional PC Hardware Sector: Picks amid new product cycles

December 2012 / January 2013

Technology – Hardware | Asia-Pacific ex-Japan

Chris LIN Key stock coverage CMI (3481 TT) Technology Hardware – Panels (Taiwan) TPK (3673 TT) Chris has more than 5 years’ experience in equity research. Before GTech (3149 TT) joining Daiwa in February 2010, he was part of the BNP Paribas Securities technology team for 2.5 years. He has strong industry Radiant (6176 TT) contacts, capable not only of gathering data point but also providing Coretronic (5371 TT) mid-to-long term views on industry trends.

: (886) 2 8758 6251| : [email protected]

Pranab Kumar SARMAH, CFA Key stock coverage OCI (010060 KS) Regional Head of Research Promotion Covers Solar Energy/Energy Storage (Regional) Motech (6244 TT) Giga Solar Materials (3691 TT) Pranab has covered the tech and solar sectors across Asia for 15 years, having joined Daiwa in 1997. He and his team have been Suntech (STP US) consistently ranked in the II and Asiamoney polls. In 2012, he Yingli Green Energy (YGE US) produced a comprehensive guide to the energy storage industry. He had a non-consensus bullish view on Gigasolar and was the first to turn negative on Yingli. : (852) 2848 4441 | : [email protected]

2012 reports: highlights

Chris Lin 17 July 2012: Human-Machine Interfaces MadeEasy: Eight technologies to reshape your world 5 April 2012: Taiwan TFT-LCD: New sizes are changing dynamics 12 September 2012: TFT-LCD Sector: Panel area growth matters more than volume growth

Pranab Kumar Sarmah February 2012: Energy Storage Toolkit: Making the right connections 22 June 2012: Solar Spectrum: Volume ≠ profit

December 2012 / January 2013

Banks | Greater China and Korea

Grace WU Key stock coverage ICBC (1398 HK) Head of Greater China FIG; Banking (Hong Kong and China) CCB (939 HK) Grace has covered the Greater China Banks for more than 8 years. BoC (3988 HK) She joined Daiwa in 2010 and previously worked for Nomura and BOCHK (2388 HK) CLSA. She has been ranked in II polls since 2007. She was the first to highlight the role of deposit franchises in differentiating NIMs, and Hang Seng Bank (11 HK) held a non-consensus positive view on Hong Kong banks in 2012.

: (852) 2532 4383 | : [email protected]

Anderson CHA Key stock coverage KB FG 105560 KS Banking/Finance (Korea) Hana Financial 086790 KS Before joining Daiwa in June 2009, Anderson worked with HSBC KEB 004940 KS Securities as a research associate, and KPMG as an auditor/financial consultant for focusing on banks and other financial institutions. He BS Financial Group 138930 KS was ranked in the II poll in 2012. He has published a series of reports Shinhan Financial Group 055550 KS this year on M&A in the Korea Banks Sector.

: (82) 2 787 9185 | : [email protected]

Jerry YANG Key stock coverage Mega Financial (2886 TT) Banking/Diversified Financials (Taiwan) Chinatrust Financial (2891 TT) Prior to joining Daiwa in August 2011, Jerry worked for Nomura E.Sun Financial (2884 TT) Securities and BNP Paribas Securities for around four years, where he focused on the Taiwan Banking/Diversified Financials Sector. First Financial (2892 TT) Jerry ranked highest in the 2011 II vote for Taiwan Banks. Fubon Financial (2881 TT)

  : (852) 2773 8842 | : [email protected]

2012 reports: highlights

Grace Wu 16 March 2012: PRC Banks Sector: Banking on financial reform 28 November 2012: Hong Kong Banks Sector: Yields over revenue growth

Anderson Cha 16 May 2012: Korea Banks Sector: Woori M&A: play through KB FG

Jerry Yang 12 January 2012: Taiwan Life Insurance Sector: Three key themes ahead

December 2012 / January 2013

Banks | ASEAN and India

Srikanth VADLAMANI, CFA Key stock coverage DBS (DBS SP) Banking (ASEAN) Bank Mandiri (BMRI IJ) Srikanth has over 8 years’ experience covering financial-sector stocks Bank Central Asia (BBCA IJ) across geographies (ASEAN, India, Eastern Europe) and sub- segments (banks, insurance, non-bank financials). He has been with Kasikornbank (KBANK TB) Daiwa since 2011 covering ASEAN banking stocks. His key non- Maybank (MAY MK) consensus call this year: Thai banks over Indonesian banks. : (65) 6499 6570 | : [email protected]

Punit SRIVASTAVA Key stock coverage ICICI Bank (ICICIB IN) Head of Research; Banking/Finance (India) Also covers Strategy (India) HDFC Bank (HDFCB IN) Housing Development (HDFC IN) Punit has 15 years’ experience in equity, economic and fixed-income research. He has been rated many times in the Asiamoney and II Rural Electrification Corporation (REC IN) polls. In April 2012, Punit published a report entitled, “Looking beyond interest rate cuts”. His top call has been on ICICI Bank, which has Power Finance Corporation (PFC IN) moved about 30% since the report.

: (91) 22 6622 1013 | : [email protected]

Danielo PICACHE Key stock coverage Bank of the Philippine Islands Banking/Diversified Financials (Philippines) (BPI PM) Danielo has been covering the Philippine banks and property sectors BDO Unibank (BDO PM) since 2008. He joined Daiwa in April 2010. BPI, a non-consensus top Metropolitan Bank and Trust pick in his July sector report, has outperformed the market. (MBT PM)

: (63) 2 813 7344 ext 293 | : [email protected]

2012 reports: highlights

Srikanth Vadlamani 5 March 2012: Indonesia Banks Sector: At an inflection point March 15 June 2012: DBS Group (DBS SP): A valuable option for free

Punit Srivastava 11 April 2012: India Banks Sector: Looking beyond interest-rate cuts

Danielo Picache 8 February 2012: Philippines Banks Sector: Initiation: Riding a cycle built for two

December 2012 / January 2013

Gaming & Lodging | Hong Kong and China

Bing ZHOU Key stock coverage Galaxy Entertainment Group (27 HK) Gaming and Leisure (Hong Kong, China) Also covers Consumer/Retail Melco Crown Entertainment (MPEL US) Bing joined Daiwa in October 2011. He was formerly a buy-side Sands China (1928 HK) analyst with Guoco Group and an analyst for a Shanghai based tech- Chow Tai Fook (1929 HK) focused venture capital fund. He started his career as an M&A analyst with a boutique investment bank in Mid-town Manhattan. Daphne International (210 HK)

: (852) 2773 8782 | : [email protected]

2012 reports: highlights

6 November 2012: Macau Gaming Sector: Initiation: know when to hold ’em and know when to fold ’em 5 March 2012: Emperor Watch & Jewellery (887 HK): Initiation: Time to shine

Consumer | Korea and India

Sang Hee PARK Key stock coverage Orion (001800 KS) Consumer/Retail (Korea) Amorepacific (090430 KS) Sang Hee has 12 years’ experience covering the Korea consumer Hyundai Department Store sector. She joined Daiwa in 2008, having worked previously for (069960 KS) CLSA, Goldman Sachs and Merrill Lynch. In 2012, her conviction call CJ O Shopping (035760 KS) on Orion, despite arguably high valuations, was a marked E-Mart (139480 KS) outperformer within the sector.

: (82) 2 787 9165 | : [email protected]

Mihir SHAH Key stock coverage ITC (ITC IN) FMCG/Consumer (India) Hindustan Unilever (HUVR IN) Mihir has 5 years’ experience covering the India consumer space. Nestle India (NEST IN) Before joining Daiwa in August 2011 as an associate, he worked for Dabur India (DABUR IN) Indiabulls Institutional Equities, Reliance Equities International, and Prabhudas Lilladher. His key non-consensus call in 2012 was on Titan Industries (TTAN IN) Titan Industries, which has returned about 70% over 12 months.

: (91) 22 6622 1020 | : [email protected]

2012 reports: highlights

Sang Hee Park: 24 May 2012: Trading Places: Counter cultures 24 May 2012: GS Retail (007070 KS): Initiation: outperformance at your convenience

Mihir Shah 23 August 2012: India Consumer Sector: 1Q FY13: strong growth in staples continue, but upside limited 6 March 2012: India Consumer Sector: Would oil cause consumer to slip?

December 2012 / January 2013

Internet / Telecommunications | Korea

Thomas Y. KWON Key stock coverage NHN (035420 KS) Pan-Asia Head of Internet & Telecommunications NCsoft (036570 KS) Also covers Telecoms/Gaming Daum (035720 KS) Thomas has over ten years’ experience as an equity research Gamevil (063080 KS) analyst. He has been consistently ranked in II surveys since 2009, Com2uS (078340 KS) and in 2011 was recognised by Thomson Reuters for his Korea telecoms stock picks. In 2011-12, Thomas led the way on the mobile- game wave, with Buy calls on Gamevil and Com2uS. : (82) 2 787 9181| : [email protected]

2012 reports: highlights

4 April 2012: Trading Places: Pushing the right buttons 10 April 2012: NHN: on-the-ground research – time to test the industry leader

Telecommunications | ASEAN and India

Ramakrishna MARUVADA Key stock coverage Singapore Telecom (ST SP) Head of ASEAN, Asia and India Telecommunications Advanced Info Services (ADVANC TB) Rama has 12 years’ experience covering the telecom industry, and Philippine Long Distance Telephone joined Daiwa in 2010 from Macquarie. He had a longstanding bearish (TEL PM) view of Indian and Philippine telecoms, and was one of the first to Telekomunikasi Indonesia (TLKM IJ) anticipate improvement in the pricing environment in Indonesia. Axiata Berhad (Axiata MK) : (65) 6499 6543 | : [email protected]

2012 reports: highlights

15 March 2012: Thailand Telecoms Sector: Initiation: Play the cycle of hope 14 June 2012: Indonesia Telecoms Sector: Redialling our call

December 2012 / January 2013

Metals & Mining | Greater China and India

Felix LAM Key stock coverage China Liansu (2128 HK) Head of Materials (Hong Kong, China) CR Cement (1313 HK) Felix joined Daiwa in July 2010. He has been covering the China CNBM (3323 HK) basic materials sector since 2004, and previously worked at CCBI, Anhui Conch (914 HK) Apex Capital and Macquarie Securities. He turned cautious on the China cement sector and downgraded it in early November, while Mongolian Mining Corp (975 HK) others in the market were turning positive.

: (852) 2532 4341 | : [email protected]

Deepak PODDAR, CFA Key stock coverage Tata Steel (TATA IN) Metals and Mining (India) JSW Steel (JSTL IN) Deepak has been with Daiwa for more than four years covering the Sterlite Industries (STLT IN) India materials space. He has also completed his CFA programme and received votes in the II polls of 2011 and 2012. Hindustan Zinc, Hindustan Zinc (HZ IN) his preferred pick in the non-ferrous segment, has outperformed the HIndalco Industries (HNDL IN) BSE metal index by 18% in the past one year.

: (91) 22 6622 1016 | : [email protected]

2012 reports: highlights

Felix Lam 8 November 2012: China Cement: Take profits before winter arrives 19 March 2012: China Liansu Group (2128 HK): Less risk, more opportunities

Deepak Poddar 1 March 2012: India Materials Sector: Is policy relief on the cards?

Conglomerates | Philippines

Rommel RODRIGO Key stock coverage DMCI Holdings (DMC PM) Regional Head of Philippines Research Rommel joined Daiwa in 2007 and has 16 years’ experience covering the Philippine market. He was the only analyst covering San Miguel Corp when it was excluded as an MSCI constituent in 2011. He highlighted that the company’s diversification would bear fruit in the long term. In 2012, he initiated on DMCI, with a contrarian Buy call.

: (63) 2 813 7344 ext 302 | : [email protected]

2012 reports: highlights

26 October 2012: DMCI Holdings (DMC PM): Initiation: Building a firm foundation

December 2012 / January 2013

Industrials | Hong Kong/China and Korea

Joseph HO, CFA Key stock coverage Zoomlion (1157 HK) Head of Industrials and Machineries Lonking (3339 HK) Also covers Infrastructure (Hong Kong, China) China State Construction International Joseph has covered the Hong Kong/China Industrial sector for 12 (3311 HK) years, and joined Daiwa in 2006. He also covers the construction China Railway Construction Corp sector. He is consistently ranked in II and Asiamoney polls. In 2012, he (1186 HK) was the first to point out affordable housing construction and railway China Railway Group (14 HK) construction as beneficiaries of the government’s stimulus programme. : (852) 2848 4443 | : [email protected]

Mike OH Key stock coverage Hyundai E&C (000720 KS) Industrials Also covers Utility & Infrastructure (Korea) Doosan Heavy Industries (034020 KS) Samsung C&T (000830 KS) Mike covers Korea industrials (construction/machinery) and utilities. Before joining Daiwa in September 2009, he worked for Nomura and Daelim Industrial (000210 KS) Samsung Securities covering various industrial sub-sectors. He KEPCO (015760 KS) received 14 votes in the 2011 II poll. His major calls for 2012 were pair-trades in the utilities and power sectors, and a rating downgrade  : (82) 2 787 9179 | : [email protected]

2012 reports: highlights

Joseph Ho 23 August 2012: China State Construction International (3311 HK): Strong prospects ahead 23 May 2012: China Railway Construction (1186 HK): Our top pick among railway construction plays

Mike Oh 2 November 2012: Korea Construction Sector: A cool winter in store 20 April 2012: Korea Utilities Sector: Trading ideas in the Korean Utilities & Power Sector

December 2012 / January 2013

Oil and Gas | Asia-Pacific ex Japan

Adrian LOH Key stock coverage CNOOC (883 HK) Regional Head of Oil and Gas Also covers Capital Goods (Singapore) PetroChina (857 HK) Sinopec (386 HK) Adrian has 12 years’ experience covering Asia-Pacific oil & gas, and joined Daiwa in 2010. In 2012, he was among the first analysts to Perusahaan Gas Negara (PGAS IJ) write on the China shale gas theme, arguing the way to play this PTT Exploration & Production would be to invest in the China oil services sector. He also highlighted (PTTEP TB) COSL as a key beneficiary of offshore China capex spending, and PGAS as a re-rating candidate post dissipation of regulatory risk.

: (65) 6499 6548 | : [email protected]

Nirmal RAGHAVAN Key stock coverage Cairn India (CAIR IN) Oil and Gas (India) Also covers Utilities (India) Oil India (OINL IN) Petronet LNG (PLNG IN) Prior to joining Daiwa in November 2009, Nirmal was an associate analyst at UBS covering Oil and Gas. Originally a chemical engineer, BPCL (BPCL IN) Nirmal worked with Reliance Industries earlier in his career. His major GAIL India (GAIL IN) calls in 2012 included an Underperform rating on Cairn India. : (91) 22 6622 1018 | : [email protected]

2012 reports: highlights

Adrian Loh 13 April 2012: Oil & Gas Sector: China shale: A long-term paradigm shift 12 September 201: China Oilfield Services (2883 HK): Sailing in safer waters

Nirmal Raghavan 29 February 2012: India Gas Sector: Demand opportunity awaits a supply response

30 January 2012: Cairn India (CAIR IN): Performance in the bag; downgrade to Hold

December 2012 / January 2013

Strategy and Quantitative | Asia-Pacific ex Japan

John HETHERINGTON, CFA Regional Deputy Head of Asia Pacific Research Through the 1990s and early 2000s, John was a ranked equity analyst and Hong Kong research head at Asia Equity and HSBC Securities, covering Hong Kong conglomerates and telcos, and Asian airlines. From 2004, John moved into a product management role for Deutsche Bank, and later BNP Paribas. In 2010, John joined Daiwa and is now the Regional Deputy Head of Asia Pacific Research.

  : (852) 2773 8787 | : [email protected]

Chang H. LEE Head of Korea Research Chang H. Lee is Korea strategist and Head of Korea Research. He was a banks analysts for 17 years prior to becoming a strategist. He has been with Daiwa for 12 years, and previously worked with CLSA and Citibank. In 2012, he introduced a series of Korea strategy reports named “Seoul Searching”, presenting stock picks based on mid/long-term socio-economic structural changes in Korea.

  : (82) 2 787 9177 | : [email protected]

Jibo MA Head of Custom Products Group Jibo has 6 years’ experience in equity research. Prior to joining Daiwa in September 2010, he worked in the Custom Products Groups of Nomura and Lehman in Hong Kong and Tokyo. Jibo has a Master’s degree from the University of Michigan, Ann Arbor.

: (852) 2848 4489 | : [email protected]

2012 reports: highlights

John Hetherington 12 November 2012: Bull-Bear Debate: 2012’s outperformers: set to lose ground or scale new heights? 7 November 2012: The Daiwa Roundtable: Hong Kong’s retail mania revisited

Chang H. Lee 21 November 2012: Seoul Searching: Soft power means hard money 24 August 2012: Seoul Searching: Mainland Chinese tourists riding the 'Korean wave'

December 2012 / January 2013

Corporate Access | Pan-Asia Highlights in 2012

Daiwa Investment Conference Hong Kong 2012 (13-16 November)

 Our flagship Asia conference, held over four days, brought together a total of 136 corporates and 552 investors from 228 fund houses, all of whom undertook a grand total of 2,888 one-on-one and small-group meetings.

 Keynote and guest speakers: Mr. Ryusuke Yokoyama (Tokyo Stock Exchange), Mr. Jeff Evanson (Tesla Motors), Mr. Simon Kahn (Google), Mr. David Hsieh (DisplaySearch Ltd), Mr. Rob Lilwall (Hong Kong-based TV adventurer and writer), Mr. Chris Leahy (Co-founder, Blackpeak Group), and Dr. Mingchun Sun, Mr. Tobias Blattner, Mr. Kevin Lai, and Mr. Michael Moran of Daiwa.

First-time events  China Smart Phone Corporate Day held in Hong Kong and Singapore.

 Daiwa Discovery Day held for the first time in San Francisco.

 Daiwa Pan-Asia Corporate Day San Francisco 2012 – the first post-DIC NY Corporate Day in San Francisco.

 2012 KOSDAQ Global Investors Conference – Daiwa’s first collaboration with The Korea Exchange in Hong Kong and Singapore.

Other highlights  Daiwa Energy Storage Grand Tour – trip to energy-storage plays in China, Korea and Japan prior to DIC Tokyo.

 Daiwa Investment Conference Tokyo 2012 – this five-day event brought together a total of 351 corporates and 369 investors from 171 firms globally, all of whom undertook 2,593 one-on-one and small-group meetings.

 Daiwa Investment Conference New York 2012 – this two-day conference brought together a total of 51 corporates and 265 investors from 136 fund houses, all of whom undertook 486 one-on-one and small-group meetings.

 HK China Investment Seminar in Tokyo – this two-day conference brought together 10 corporates and 59 investors from 23 fund houses, all of whom undertook 100 one-on-one and small-group meetings.

 Daiwa India Corporate Day in Tokyo – 9 management representatives from 6 Indian corporates participated in this event, which played host to 25 investors from 20 major funds in Japan.

 Daiwa Pan-Asia Property Seminar 2012 – this annual signature event was held in Singapore for a fourth time.

 India Pharma Summit 2012 – the third annual event in Mumbai.

December 2012 / January 2013

Daiwa Corporate Access: major events in 2012

Date / Month Co-organiser Event Location 3-10 Jan Hong Kong Corporate Summit Hong Kong

5/6 Jan China Smart Phone Corporate Day Hong Kong/Singapore

6/17 Jan China Outlook Luncheon Hong Kong/Singapore

9-10 Feb Daiwa Discovery Day San Francisco

16/17 Feb Taiwan Corporate Day Singapore/Hong Kong

23-24 Feb India Pharma Summit 2012 Mumbai

27 Feb-2 Mar Daiwa Energy Storage Grand Tour China, Korea & Japan

5-9 Mar Daiwa Investment Conference Tokyo 2012 Tokyo

12-15 Mar China Consumer Tour China

25 Apr Philippine Corporate Day Singapore

21-22/23 May Daiwa GTSM Corporate Day Hong Kong/Tokyo

25 May India Financial Day Singapore

5-6 Jun Daiwa Investment Conference NY 2012 New York

Daiwa Pan-Asia Corporate Day 8 Jun San Francisco San Francisco 2012

5-6 Jul HK China Investment Seminar Tokyo

6 Jul HOSE Daiwa Vietnam Corporate Day 2012 Singapore

Toronto, San Francisco & 30 Jul-3 Aug Best Of Thailand Tokyo

4-6 Sep 2012 KOSDAQ Global Investors Conference Singapore/Hong Kong

7 Sep Daiwa REIT Day 2012 Hong Kong

13-14 Sep Daiwa India Corporate Day Tokyo

26-27 Sep Daiwa Pan-Asia Property Seminar 2012 Singapore

16/18-19 Oct Best of Indonesia Tokyo/New York

13-16 Nov Daiwa Investment Conference HK 2012 Hong Kong

10 Dec India Financial & Infrastructure Day Mumbai

December 2012 / January 2013

Daiwa Asia Research Team by market

Hong Kong Regional Research Head Nagahisa MIYABE Regional Research Co-Head Hiroaki KATO Regional Deputy Head of Asia Pacific Research; Head of Product Management; Equity Strategy John HETHERINGTON Regional Head of Research Promotion; Technology – Hardware Pranab Kumar SARMAH Deputy Head of Hong Kong and China Research; Pan-Asia/Regional Head of Clean Energy and Utilities; Utilities; Dave DAI Power Equipment; Renewables (Hong Kong, China) Head of China Research, Chief Economist (Regional); Economics Mingchun SUN Economics (Regional) Kevin LAI Economics (China) Chi SUN Economics (Taiwan) Christie CHIEN Head of Hong Kong Research; Head of Hong Kong and China Property; Regional Property Coordinator; Jonas KAN Property Developers (Hong Kong) Autos & Auto Parts (China) Jeff CHUNG Head of Greater China FIG; Banking (Hong Kong, China) Grace WU Banking/Diversified Financials (Taiwan) Jerry YANG Banking (China) Leon QI Gaming and Leisure (Hong Kong, Macau); Consumer (Hong Kong, China) Bing ZHOU Industrials (Hong Kong, China) Joseph HO Pan-Asia/Regional Head of IT/Electronics; Semiconductor/IC Design (Regional) Eric CHEN Head of Materials (Hong Kong, China); Cement and Building Materials (China, Taiwan); Property (China) Felix LAM Materials (China) Joey CHEN Small & Medium Cap (Regional) John CHOI Head of Transportation (Hong Kong, China); Hong Kong and China Research Coordinator; Transportation and Kelvin LAU Infrastructure (Regional) Head of Custom Products Group; Custom Products Group; Quantitative Research Jibo MA

South Korea Head of Research; Equity Strategy Chang H LEE Pan-Asia Co-head/Regional Head of Automobiles and Components; Automobiles; Shipbuilding; Steel Sung Yop CHUNG Automobiles and Components Jun Yong BANG Banks Anderson CHA Consumer Sang Hee PARK Gaming and Leisure Francis KIM Industrials, Infrastructure Mike OH Technology – Hardware, Technology – Semiconductors Jae H LEE Pan-Asia Head of Internet and Telecommunications Thomas Y KWON Transportation and Infrastructure SoYoung WANG

Taiwan Head of Research; Regional Head of Small/Medium Cap; Small & Medium Cap (Regional); Equity Strategy Mark CHANG Technology – Hardware – Handsets and Components Birdy LU Technology – Hardware – Technology – IT Services & Software; Small & Medium Caps Christine WANG Technology – Hardware - Panels Chris LIN Small & Medium Caps Rita HSU

India Head of Research; Banks Punit SRIVASTAVA Autos & Auto Parts Navin MATTA Industrials; Utilities Saurabh MEHTA Consumer Mihir SHAH Materials Deepak PODDAR

December 2012 / January 2013

Singapore Head of Research, Regional Head of Oil and Gas; Oil and Gas (ASEAN and China); Adrian LOH Industrials (Singapore) Banks (ASEAN) Srikanth VADLAMANI Property David LUM Head of ASEAN & India Telecommunications; Telecommunications (ASEAN & India) Ramakrishna MARUVADA

Philippines Head of Philippines Research; Equity Strategy; Industrials; Metal and Mining Rommel RODRIGO Banks Danielo PICACHE

December 2012 / January 2013

Daiwa Asia Sales Team by market

Hong Kong Global Head of Asia Equity Sales, Nagahisa MIYABE Asia & Oceania Regional Head of Equity Global Co-Head of Asia Equity Sales/Asia Oceania Regional Co-Head of Equity Hiroaki KATO Regional Head of Asian Equities Sales Ester LI Asian Equities Sales Andrew DOUGLAS Asian Equities Sales Hiroyuki GOTO Asian Equities Sales Ravi NARAIN Asian Equities Sales Vishal BHAMMER Asian Equities Sales (Japan Equities) Takayuki SAITO Asian Equities Sales (Japan Equities) Masayuki MORI HK/China Sales Bonnie ARAI HK/China Sales Charles LEE HK/China Sales Fei XU

Singapore Head of Asian Equities Sales (Singapore) Jean ANG Asian Equities Sales Evangeline CHEONG Asian Equities Sales Jeffrey CAHYADI Asian Equities Sales Yosuke KOBAYASHI ASEAN Equities Sales Tadashi ISHII Japan Specialist Takahito OTAKE Japan Specialist Oka TAIKAN

Taiwan Head of Equity (Taiwan) William CHEN Taiwan Specialist David HUANG Taiwan Specialist Sunny HSIAO Taiwan Specialist Tomoko SUTO

Korea Head of Equity (Korea) K Y NAM Head of International Sales Joe LEE Korea Specialist Jun KOH Korea Specialist Seung Kyung LEE

India Head of Equity (India) Kentaro KONISHI India Specialist Deepa ARORA

Australia Australian Sales Craig ROBERTSON

Philippines Head of Sales (Philippines) Leo KATIGBAK Philippines Specialist Racquel PANALIGAN Philippines Specialist Rosel PONCE

December 2012 / January 2013