Monday, August 30, 2021 FBMKLCI: 1, 590 .16

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 Profit Taking Consolidations Likely but the Bull Market is Intact The local blue -chip benchmark FTSE Bursa Kuala Lumpur Composite Index (FBM KLCI) rallied to a fresh two-month high last week sparked by easing domestic political uncertainties following the appointment of Datuk Seri Ismail Sabri Yaakob as the 9 th Prime Minister, and was sustained by foreign buying in index heavyweights, on the positive perception that more political stability will fuel economic reopening momentum.

Week-on-week, the FBM KLCI surged 72.13 points, or 4.75 percent to 1,590.16, with gains in Public Bank (+26sen), Tenaga (+53sen), Press Metal Aluminum Holdings (+49sen), IHH Healthcare (+61sen) and CIMB (+25sen) contributing most of the rise. Average daily traded volume last week moderately increased to 4.35 billion shares compared to the 4.03 billion shares the previous week, while value rose to RM2.88 billion against the RM2.16 billion average the previous week.

The newfound strength in the local equity market is expected to last but could be subjected to bouts of profit taking consolidations to neutralize the overbought conditions as the benchmark FBMKLCI continues to rise on strong signs of political stability and likely full reopening of the domestic economy by this November. The positive move by the newly minted prime minister to meet up with leaders of the main opposition parties from Pakatan Harapan last week and their willingness to throw support behind the prime minister when a motion of confidence is tabled in parliament in September have added stability to the current government. In fact, obtaining support from the opposition bloc of 88 members of

parliament (MPs) will solidify his current position with 114 MPs already backing him.

In my view, if this turns out to be true, the strong support negates the need for a general election until it is due on or before 16 July 2023. With previous cabinet almost intact under the tutelage of the new prime minister, the almost two-year period between now and the next general election provides a golden opportunity for the current government to pursue the economic and parliamentary reform agenda more aggressively without much political hinderance. As such, with Covid-19 vaccinations progressing well and the economy slated for full reopening by this November, there is every reason to believe that this equity market rebound has more legs as the FBMKLCI extends rally.

The tabling of 12 MP and Budget 2022 in Dewan Rakyat on September 20 and October 29 respectively should provide some excitement for investors to increase their equity weightings as they anticipate the government to announce more strategic initiatives to complement the National Recovery Plan and to propel long-term economic growth. Foreigners should add to the lustre with their current equity holdings of 20% at more than a decade low.

On the external front, the US Fed Chair Jerome Powell signaled last Friday in the annual Jackson Hole Economic Policy Symposium that the central bank may begin winding down its emergency bond buying program this year but a rate hike may materialize only later next

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year. He acknowledged that the rapid reopening of the economy has led to an increase in inflation, as shown in the 4.2% and 3.6% YoY increases in the July headline and core personal consumption expenditures respectively, which were well above the Fed’s 2% long-run target.

However, he was consistent with his view that the spike in inflation could prove to be temporary as the inflationary pressures are not broad-based, there are signs of moderation in prices of goods and services mostly affected by the pandemic and reopening, and little evidence of wage increases that might threaten excessive inflation. He added that the Fed will continue to hold the target range for the federal funds rate at its current level until the economy reaches conditions consistent with maximum employment, and inflation has reached 2% and is on track to moderately exceed 2% for some time. Investors interpretate this as a gradual approach to monetary tightening and pushed up the US equities higher last Friday. Learning from its mistake 2013 when the abrupt announcement of reductions in bond purchases led to a taper tantrum, the Fed has been managing market expectations well so far.

Thus, any eventual pullback in pricey US equities, probably later this year, is expected to be orderly and is not expected to trigger a rout in global equities. Developing Asia, including Malaysia, should benefit from the return of foreign investment flows as funds move in search of higher returns in undervalued equity markets. As such, reiterate our call to remain invested in mostly undervalued blue chips in the banking, plantation and telecommunication sectors apart from picking up recovery plays in the building materials, consumer, gaming, oil & gas and property sectors.

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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

Me nara TA One 22 Jalan P. Ramlee 50250 Kuala Lumpur Malaysia Tel: 603 – 2072 1277 Fax: 603 – 203 2 504 8 www.ta.com.my

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News In Brief Corporate

Yinson Holdings Bhd (Not Rated) through its wholly owned subsidiary Yinson Acacia Ltd has entered into a binding Memorandum of Understanding with Enauta Energia S.A. to engage in exclusive negotiations for the potential supply and charter of a floating production storage and offloading unit for the Atlanta field in the Santos Basin, Brazil. The memorandum is in line with Yinson’s ambitions to strengthen its presence in Brazil. (Malaysian Reserve)

Yinson Holdings Bhd (Not Rated) via its indirect wholly owned unit Yinson Renewables Pte Ltd, has signed a collaboration agreement with Plus Xnergy Services Sdn Bhd to jointly invest and develop solar photovoltaic (PV) projects via power purchase agreement schemes within and beyond Malaysia. Focusing primarily on commercial and industrial rooftop solar PV projects, Yinson and Plus Xnergy aim to build an asset portfolio of up to 250MW within the next three years. ()

Dialog Group Bhd’s (Not Rated) wholly-owned subsidiary Dialog Fabricators Sdn Bhd (DFSB) has inked a joint venture agreement with China-based company Morimatsu Technology Company to collaborate and provide one-stop engineering fabrication services for critical process equipment, pressure vessels and facility solutions. This is to support various industries and to serve its customers locally and internationally from DFSB’s facility in Pengerang. (The Edge)

Kerjaya Prospek Property Bhd (Not Rated) is buying a parcel of leasehold land in Sungai Buloh, Selangor for RM42mn cash, to expand its landbank size. Barring any unforeseen circumstances, the exercise is expected to be completed by April 2022. (The Edge)

Malaysian Resources Corp Bhd (Not Rated) proposed to buy 22 acres of leasehold land near Ipoh, for RM31.5mn from major shareholder Tan Sri Mohamad Salim Fateh Din. The subject properties are located opposite a proposed mixed development to be undertaken by SIDEC in Simpang Pulai, Perak. (The Star)

Malaysia Airport Holdings Bhd said the tender for Kuala Lumpur International Airport’s Automated People Mover is now at the final stage of the evaluation process. Separately, Malaysia Airport is allocating between RM600mn and RM700mn capex for its Airports 4.0 digital initiative for the next five years. ()

Axiata Group Bhd said the planned merger between its unit Celcom Axiata Bhd and Digi.com Bhd depends on the Malaysian Communications and Multimedia Commission now as both parties had completed their side of the proposal. (The Edge)

Bursa Malaysia has granted its approval for the listing of 855.1mn new shares that Fintec Global Bhd (Not Rated) will issue for its proposed private placement. This is to raise RM19.2mn fresh capital to build a glove factory in Chemor, Perak, where its associate company AT Systematization Bhd’s glove manufacturing plant is located. Fintec holds a 9.2% stake in AT Systematization. (The Edge)

Focus Dynamics Group Bhd (Not Rated) has emerged as the largest shareholder with a 16.7% stake in Green Ocean Corp Bhd (Not Rated), after Focus Dynamics acquired the entire 351.9mn new shares earmarked under Green Ocean’s private placement to raise money which will finance Green Ocean’s planned diversification into rubber glove manufacturing. (The Edge)

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Ornapaper Bhd (Not Rated) said its subsidiary Ornapaper Industry (M) Sdn Bhd has been ordered by the Ministry of Health to shut its factory in Melaka, after several employees tested positive for Covid-19. The factory will be closed till Sept 10 for sanitisation purposes. (The Edge)

Apollo Food Holdings Bhd’s (Not Rated) Johor manufacturing facility has resumed operations after thorough disinfection was carried out. The confectionary had been instructed by MoH to temporarily halt operations for seven days until Aug 25. (The Edge)

Paramount Corp Bhd (Not Rated) has appointed Quah Chek Tin as chairman of the board with effect from Sept 1. Quah’s appointment will fill the void left by the company’s late chairman and executive director Datuk Teo Chiang Quan who passed away unexpectedly on May 24. (The Star)

Public Bank Bhd’s 2QFY21 net profit rose 38.0% YoY to RM1.38bn from RM1.01bn. 2QFY21 revenue rose to RM4.92bn from RM4.74bn a year earlier. For 1HFY21, net profit rose to RM2.91bn from RM2.33bn a year earlier despite lower revenue at RM9.95bn compared with RM10.25bn previously. (Bursa Malaysia)

RHB Bank Bhd's net profit grew to RM701.3mn for 2QFY21 from RM400.8mn a year ago. Revenue dropped 10.2% YoY to RM2.93bn from RM3.25bn in 2QFY20. For 1HFY21, its net profit increased 39.0% YoY to RM1.35bn. Cumulative revenue was down by nearly 10.0% YoY to RM5.83bn in 1HFY21 from RM6.47bn a year ago. (Bursa Malaysia)

Axiata Group Bhd's net profit more than tripled to RM227.7mn for 2QFY21, from RM75.6mn in 1QFY21. Quarterly revenue, however, grew at a much slower pace of 5.5% QoQ to RM6.39bn, from RM6.06bn in the preceding quarter. YoY wise, its net profit increased 185% from RM80.0mn in the previous corresponding quarter last year, while revenue increased 10.0% from RM5.79bn. For 1HFY21, its net profit grew nearly 32.0% YoY to RM353.3mn from RM268.1mn, while its cumulative revenue increased 5.2% YoY to RM12.45bn from RM11.83bn. (Bursa Malaysia)

Telekom Malaysia Bhd’s (TM) 2QFY21 net profit fell 20.4% YoY to RM218.6mn from RM274.8mn a year earlier. Revenue however rose to RM2.76bn from RM2.59bn. For 1HFY21, TM recorded an increase in net profit to RM544.1mn from RM427.3mn a year earlier as revenue rose to RM5.57bn from RM5.15bn. (Bursa Malaysia)

Genting Bhd’s 2QFY21 net loss narrowed 28.3% YoY to RM563.5mn from RM786.1mn in 2QFY20, while revenue ballooned 165.1% YoY to RM2.94bn from RM1.11bn in 2QFY20. For the first half, Genting’s net loss narrowed to RM895.3mn from RM918.4mn in the same period last year. Six-month revenue fell to RM5.19bn from RM5.22bn in the corresponding period last year. (Bursa Malaysia)

AEON Co (M) Bhd posted a net profit of RM10.9mn for 2QFY21 compared with a net loss of RM9.6mn a year ago. Revenue for the quarter fell 8.4% YoY to RM874.2mn from RM954.3mn. For 1HFY21, the group posted a net profit of RM32.9mn versus a net loss of RM2.1mn a year ago. Six-month revenue, however, fell 12% YoY to RM1.89bn from RM2.15bn previously. (Bursa Malaysia)

Padini Holdings Bhd posted a net profit of RM10.5mn in 4QFY21, compared to a net loss of RM16.8mn a year ago. Quarterly revenue expanded 20.5% YoY to RM209.8mn from RM174.2mn. For the full year ended June 30, Padini’s net profit retreated 28.1% YoY

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CSC Steel Holdings Bhd is back in the black with a net profit of RM15.4mn for 2QFY21, compared with a net loss of RM2.2mn a year earlier. Revenue rose 167% YoY to RM203.0mn, from RM121.4mn in 2QFY20. For 1HFY21, CSC Steel said net profit improved by 13 times to RM37.3mn, from RM2.9mn previously. The six-month revenue jumped 82.5% YoY to RM740.4mn, from RM405.7mn a year ago. (Bursa Malaysia)

Petroliam Nasional Bhd (Not Listed) registered a net profit of RM9.6bn in 2QFY21 on better earnings and lower impairment compared to a net loss of RM21.0bn in the same quarter last year. Revenue for the quarter advanced 68% YoY to RM57.1bn from RM34.0bn in the corresponding quarter last year. For 1HFY21, Petronas’s net profit rallied more than 100% YoY to RM18.9bn compared to the net loss of RM16.5bn in the corresponding period last year. Cumulative revenue expanded 17% YoY to RM109.6bn from RM93.6bn in the first half of last year. (Bernama)

Boustead Holdings Bhd (Not Rated) significantly narrowed its net loss 2QFY21 to RM7.3mn, from RM73.7mn a year ago. Revenue rose 71.9% YoY to RM2.58bn from RM1.5bn for 2QFY20. For 1HFY21, Boustead returned to the black after six consecutive quarters of losses with a RM35.8mn net profit versus a net loss of RM146.7mn a year ago. First-half revenue also rose 24.1% YoY to RM4.66bn from RM3.76bn. (Bursa Malaysia)

Bumi Armada Bhd’s (Not Rated) net profit for 2QFY21 rose 16.8% YoY to RM139.9mn, from RM119.9mn a year ago. Quarterly revenue, meanwhile, grew 1.4% YoY to RM615.6mn from RM606.8mn. For 1HFY21, the group returned to the black by posting a net profit of RM302.7mn, versus a net loss of RM104.2mn previously. Revenue for the period increased by 1.6% YoY to RM1.18bn from RM1.16bn. (Bursa Malaysia)

CI Holdings Bhd’s (Not Rated) net profit for 4QFY21 jumped by 177% YoY to RM22.1mn from RM7.9mn a year earlier. This came on the back of revenue improving 20.9% YoY to RM900.12mn from RM744.7mn previously. For the full year, CI Holdings’ net profit doubled to RM69.9mn from RM30.1mn in FY20, while revenue grew 22.2% YoY to RM3.14bn. (Bursa Malaysia)

Hengyuan Refining Company Bhd (Not Rated) posted a net loss of RM59.4mn for 2QFY21, from a net profit of RM48.7mn registered in the same period a year ago. However, revenue more than doubled to RM2.50bn, from RM1.21bn previously. Moving forward in the near term, the group said crude prices are expected to remain volatile and refining margins are expected to slowly recover. (Bursa Malaysia)

OSK Holdings Bhd's (Not Rated) net profit climbed 73.2% YoY to RM103.6mn in 2QFY21 from RM59.8mn. Quarterly revenue jumped 53.1% YoY to RM267.2mn from RM174.6mn. For 1HFY21, OSK's cumulative net profit soared 60.6% YoY to RM220.0mn from RM136.9mn in the previous year, while cumulative revenue grew 37.6% YoY to RM592.2mn from RM430.3mn. (Bursa Malaysia)

P.A. Resources Bhd’s (Not Rated) 4QFY21 net profit rose by more than four times to RM14.2mn from RM3.2mn. Quarterly revenues improved by 36% YoY to RM73.0mn from RM53.6mn. For FY21, its net profit more than tripled to RM31.4mn from RM9.3mn, while its revenue increased 38.4% YoY to RM280.3mn from RM202.5mn. (Bursa Malaysia)

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Paramount Corp Bhd (Not Rated) posted a net profit of RM1.6mn in 2QFY21 compared to a net loss of RM4.0mn a year ago. Quarterly revenue almost doubled to RM127.5mn from RM64.2mn a year ago. For 1HFY21, its net profit was RM3.9mn compared with RM462.6mn which was boosted by a whopping divestment gain a year ago. Six-month revenue ballooned nearly 50% YoY to RM279.3mn from RM186.3mn previously. (Bursa Malaysia)

Power Root Bhd’s (Not Rated) net profit for 1QFY21 slumped 81.3% YoY to RM2.0mn, from RM10.73mn a year ago. Revenue fell 11.0% YoY to RM74.7mn from RM83.9mn in 1QFY20, mainly attributable to lower export market revenue. (Bursa Malaysia)

Rubberex Corp (M) Bhd’s (Not Rated) net profit almost tripled in 2QFY21 to RM64.7mn from RM22.9mn in 2QFY20. Its revenue for the quarter also more than doubled to RM176.6mn from RM88.1mn in 2QFY20. For the first-half performance, Rubberex made a net profit of RM151.2mn, almost fivefold from RM32.2mn made last year while recording revenue of RM351.8mn compared to RM154.5mn a year ago. (Bursa Malaysia)

Sarawak Plantation Bhd’s (Not Rated) net profit for 2QFY21 jumped 52.0% YoY to RM29.4mn from RM19.4mn in the previous corresponding quarter. Quarterly revenue almost doubled to RM192.6mn from RM97.4mn a year ago. For the six months ended June 30, its net profit more than doubled to RM53.1mn from RM25.2mn, while its revenue increased 72.2% YoY to RM338.1mn from RM196.3mn. (Bursa Malaysia)

TIME dotCom Bhd's (Not Rated) net profit for 2QFY21 jumped 32.8% YoY to RM92.7mn, from RM69.8mn a year earlier. Quarterly revenue grew 13.9% YoY to RM347.2mn from RM304.8mn. For the first half, TIME dotCom's cumulative net profit rose 9.7% YoY to RM184.0mn, from RM167.8mn in the previous January-June period. Cumulative six-month revenue expanded 13.3% YoY to RM678.5mn from RM598.8mn previously. (Bursa Malaysia)

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News In Brief Economy

Malaysia Malaysia's Total Trade 13% Higher at RM180.96b n in July Malaysia’s trade performance continued its growth momentum in July 2021, with total trade increasing by 13% year-on-year to RM180.96bn, marking the sixth consecutive month of double-digit growth since February 2021. According to the Ministry of International Trade and Industry (MITI), exports grew by 5% to RM97.32bn, the 11th consecutive month of annual expansion since September 2020, while imports rose by 24% to RM83.64bn. The trade surplus contracted 45.8% to RM13.68bn. The export growth was backed by higher shipments of petroleum products, palm oil and palm oil- based agriculture products as well as chemicals and chemical products driven by robust external demand. Exports to major markets, namely ASEAN, the European Union (EU) and Japan, recorded positive growth.

On a month-on-month basis, imports increased by 0.5%, while trade, exports and the trade surplus declined by 4.1%, 7.7% and 38.5% respectively. “For the first seven months of 2021, total trade expanded by 23.9% to RM1.237tn from the same period last year. Exports grew by 25.9% to RM682.9bn and imports rose by 21.6% to RM554.17bn, while the trade surplus surged by 48.8% to RM128.74bn ,” MITI added. The ministry said in July 2021, the major sectors all recorded export growth. (The Edge)

Malaysia's Economic Recovery Momentum May be Derailed by Covid-19 Surge Malaysia's economic recovery momentum may be derailed by the record-breaking daily new Covid-19 cases, dimming prospects for a stronger performance in the third quarter (3Q21) despite the ongoing vaccine roll-out, the Department of Statistics Malaysia (DOSM) warned. “Given the scenario, the Leading Index (LI) posted a slower annual growth of 0.5% in June 2021. However, the LI declined 2.8% month-on-month (m-o- m). As such, a challenging economic outlook is forecast for Malaysia in the months ahead ,” said DOSM chief statistician Datuk Seri Dr Mohd Uzir Mahidin in a statement in conjunction with the publication of the latest Malaysian Economic Statistics Review (MESR). Accordingly, Bank Negara Malaysia (BNM) has revised its full-year gross domestic product (GDP) growth forecast for Malaysia to between 3% and 4% from the previous estimate of between 6% and 7.5% for 2021.

Mohd Uzir noted that the US, the UK, China, Taiwan, South Korea, and ASEAN had shown signs of economic expansion. As for Malaysia, GDP surged by 16.1% in 2Q21 after four consecutive quarters of contraction, attributed to the low-base effect, while “on the supply side, it was supported mainly by continuous growth in the manufacturing sector, which grew by 26.6%, and a rebound in the services sector at 13.4% compared to a decline of 2.3% in the preceding quarter ,” he said. “ Nevertheless, on a quarter-on-quarter (q- o-q) seasonal adjustment, GDP contracted 2% from a growth of 2.7% in the preceding quarter .” For the first half of 2021 (1H21), the domestic economy grew by 7.1% against a decrease of 8.4% in the same period last year. (The Edge, DOSM)

PM Wants Vaccination Rates in Six States to Reach 50% by End-September The Ministry of Health (MOH) and the Ministry of Science, Technology and Innovation (MOSTI) have been given time until the end of September to ensure that the vaccination rates within the adult population in six states reach 50%. Prime Minister Datuk Seri Ismail Sabri Yaakob said the six states recording vaccination rates of below 50% were Perak (46.5%), Terengganu (46.2%), Johor (44.9%), Kedah (43.2%), (43.1%), and Sabah (37.1%). "I want all these six states to achieve a vaccination rate of over 50% (for their adult population) before the end of this September. We don't want any of

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these states to have less than 50% ." He said this at a media conference after witnessing the administering of the one millionth dose of Covid-19 vaccine at the World Trade Centre Kuala Lumpur vaccination centre (PPV).

The prime minister said that in order to ensure smooth running of the National Covid- 19 Immunisation Programme (PICK), he has ordered MOSTI to use the existing supply of vaccine in the country and not wait until the arrival of the additional supply ordered. "If there is a problem with delivery, no need to wait for the vaccine but to instead rely on the existing supply. For example, Pharmaniaga Bhd which is bottling Sinovac is always ready with this vaccine at its plant ," he added. (The Edge)

MoH to Handle Vaccinations, Health Strategies, MOSTI to Focus on Vaccine R&D All vaccination-related programmes and health strategies related to Covid-19 will from now on only be handled by the Ministry of Health (MoH) through its newly appointed minister Khairy Jamaluddin, said Prime Minister Datuk Seri Ismail Sabri Yaakob. He said the Ministry of Science, Technology and Innovation (MOSTI), now helmed by former health minister Datuk Seri Dr Adham Baba, will focus on research and development (R&D) to produce Covid-19 vaccines. “If prior to this, there were two related ministries (Covid-19) namely MoH and MOSTI, besides a committee chaired by two ministers, two secretaries-general and two directors-general... it is quite difficult if it remains as two because they may have different views and so on. MOSTI will focus on producing its own vaccine because if Thailand can announce that it is producing its own vaccine, then Malaysia can also do the same because Covid-19 will be endemic and will be around us like dengue, which means vaccines are still needed. [And] that is why MOSTI has to focus [on this] so that we don't depend on foreign countries because when the number of cases increases and we still depend [on vaccine supply] from abroad, that will cause supplies to be affected. If we can produce our own vaccines, the situation will be different ,” he said. Ismail Sabri said this at a media conference after witnessing the Para Predators Exercise Series 1/2021 that was also attended by Chief of Defence Force Gen Tan Sri Affendi Buang and Army Chief Gen Tan Sri Zamrose Mohd Zain in Kampung Batu Bor. (The Edge)

Asia Australia Retail Sales Fall for Second Month Australia's retail sales declined for a second straight month in July as some regions went into lockdown following new cases of coronavirus infections, preliminary data showed. Retail sales fell a seasonally adjusted 2.7% from June, when they dropped 1.8%, the Australian Bureau of Statistics said. Economists had forecast a 2.3% slump. The monthly decline was the worst since December 2020. In May, sales grew 0.4%. Compared to the same month last year, retail sales dropped 3.1% in July after a 2.9% gain in June. The latest annual fall was the first since April 2020. "Lockdowns and stay-at- home orders in many parts of Australia continued to impact retail trade in July, with many non-essential retail businesses closing their physical stores ," Ben James, director of quarterly economy wide surveys at ABS, said. "In particular, the first full month of lockdown in New South Wales, following the Delta outbreak in June, saw retail turnover in the state fall 8.9% ." (RTT)

Singapore Producer Price Inflation Increases in July Singapore's producer price inflation increased in July, data from the Department of Statistics showed. The manufacturing producer price index increased 11.6% year-on- year in July, following a 9.6% rise in June. The oil index surged 6.0% annually in July and the non-oil indices rose 1.2%. The Domestic Supply Price Index grew 17.0% year-on- year in July, following a 16.8% increase in June. On a monthly basis, producer prices rose 2.6% in June, following a 2.4% increase in the preceding month. Another report

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from the statistical office showed tha t the import prices gained 12.5% ann ually in July, following a 12.4% increase in the previous month.

On a month-on-month basis, import prices rose 2.0% in July, after a 2.1% gain in the prior month. Data showed that export prices rose 13.0% yearly in July and grew 1.8% from a month ago. (RTT)

United States Powell Says Fed Could Start Scaling Back Stimulus This Year Federal Reserve Chairman Jerome Powell reaffirmed the central bank’s emerging plan to begin reversing its easy-money policies later this year while explaining in greater detail why he expects a recent surge in inflation to fade over time. At the Fed’s meeting late last month, “ I was of the view, as were most participants, that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace ” of the Fed’s $120bn in monthly asset purchases this year, Mr. Powell said Friday. Since that meeting, the economy has seen “ more progress in the form of a strong employment report for July, but also the further spread of the Delta variant ” of the Covid-19 virus, Mr. Powell said Friday morning at a virtual symposium hosted by the Kansas City Fed.

The rise of Covid-19 infections due to the Delta variant has complicated the economic outlook by creating renewed risk of a sharper economic slowdown at the very moment some officials were ready to reduce, or taper, the pace of monthly bond purchases. Growth in consumer spending slowed last month to 0.3%, the Commerce Department reported on Friday, less than a third of June’s spending increase of 1.1% and less than economists had projected. Spending on services grew, while spending on goods declined. (WSJ)

White House More Than Doubles Its Inflation Forecast in New Update The White House more than doubled its forecast for annual inflation in new projections released Friday, as supply-chain disruptions stemming from the Covid-19 pandemic continue to put upward pressure on prices. The Office of Management and Budget said it expected consumer prices would rise 4.8% in the fourth quarter from a year earlier, up sharply from the 2% rise that the Biden administration forecast in May. Officials see those price pressures quickly abating next year, with the consumer-price index rising 2.5% in the fourth quarter of 2022, more than the 2.1% they expected in May, and reaching 2.3% in 2023. The updated projections are consistent with other independent forecasts, including from the Federal Reserve, and reflect the administration’s view that price pressures, while higher than expected earlier this year, are likely to fade over time, administration officials said Friday. “We think this trajectory is very much consistent with the inflation outlook we’ve been discussing pretty much since we got here ,” one official said on a call with reporters.

Recent data suggest inflation pressures may have started easing but remain elevated. Consumer prices rose 0.4% last month, lower than the prior month’s 0.5% gain, according to the Federal Reserve’s preferred inflation gauge. Compared with a year ago, overall prices rose 4.2%. Federal Reserve Chairman Jerome Powell on Friday used most of his speech at a virtual symposium hosted by the Kansas City Fed to explain why he still believed this year’s inflation surge would prove temporary, and why tightening monetary policy too early could stunt the expansion. (WSJ)

U.S. Household Income Jumped in July as Spending Growth Slowed U.S. household income rose rapidly last month as the government handed out enhanced tax breaks for parents, priming the economy for stronger growth once the Delta variant subsides. The 1.1% gain in household income marked the biggest jump

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since March, the Commerce Department said Friday. Families started receiving tax credits worth up to an additional $1,600 per child this year as part of a $1.9tn pandemic-relief package passed by Congress this spring. Many families stashed the extra money, boosting their already high savings. Growth in consumer spending slowed last month to 0.3%—less than a third June’s spending increase of 1.1%. Economists believe the Delta variant, a highly contagious strain of Covid-19, is partly to blame for the slower growth. Consumer fears of infection, new business restrictions and mask mandates are likely leading households to pull back in some areas, economists said.

Spending on services, such as restaurant outings and sporting events, grew sharply last month but was partly offset by a decline in spending on goods, such as cars and refrigerators. Overall spending growth could further slow after a rash of canceled events—including concerts, conferences, and festivals—announced in recent days. After a series of pandemic-relief programs dating from the Trump administration, households now have $1.7tn in savings—up from about $1.3tn in January 2020, just before the pandemic walloped the economy, Mr. Brusuelas said. (WSJ)

U.S. Consumer Sentiment Plummets to Near-Decade Low U.S. consumer sentiment plunged to its lowest level in nearly a decade in August as consumers’ views of their personal financial prospects continued to worsen due to smaller income gains amid higher inflationary trends, a survey showed on Friday. The University of Michigan said its consumer sentiment index fell to 70.3 in August - the lowest since December 2011 - from July’s final reading of 81.2. Economists polled by Reuters had forecast a reading of 70.7. August’s final reading was little changed from the preliminary reading of 70.2 earlier this month. The losses were widespread across all demographic groups and regions. “The extraordinary falloff in sentiment also reflects an emotional response, from dashed hopes that the pandemic would soon end and lives could return to normal ,” Richard Curtin, the survey director, said in a statement.

The economy is still expected to grow this year at its fastest pace in four decades after falling into a brief recession in 2020 caused by the coronavirus pandemic. However, the recovery is showing some indication of cooling off and COVID-19 cases have continued to climb in August as the more transmissible Delta variant spreads rapidly across the country. Labor shortages across the service sector also persist while supply chain disruptions have continued. The survey’s gauge of consumer expectations declined to 65.1 in August, its lowest reading since October 2013, from July’s 79.0, and was little changed from the mid-month reading of 65.2. (Reuters)

Eurozone German Import Price Inflation Highest In 4 Decades Germany's import price inflation accelerated in July to its highest level in four decades, preliminary data from Destatis showed. The import price index climbed 15.0% year-on- year after a 12.9% increase in July. Economists had forecast a rise of 13.6%. The latest rise was the strongest since September 1971, when import prices rose 17.4%, Destatis said. Compared to the previous month, import prices rose 2.2%. In July, the import price inflation was driven by energy imports, prices of which surged 89.6%. The high rate was due to the very low prices in July 2020. Prices of natural gas imports soared 170.5% and those of crude oil imports climbed 68.9%.

Excluding crude oil and mineral oil products, import prices increased 12.2% in July and rose 2.0% from the previous month. Export prices climbed 6.3% year-on-year in July, which was the fastest pace since January 1982. On a month-on-month basis, export prices rose 1.2%. (RTT)

Page 10 of 11

30-Aug-21

News In Brief Share Buy-Back

Share Buy-Back: 27 August 2021 Total Treasury Company Bought Back Price (RM) Hi/Lo (RM) Shares DSONIC 225,000 0.50/0.495 0.50/0.49 86,606,000

KENANGA 420,000 1.35/1.31 1.36/1.30 1,163,100

KFIMA 10,000 1.94/1.93 1.96/1.90 5,241,100

MULPHA 73,700 2.18/2.15 2.19/2.11 3,897,600

RANHILL 75,000 0.68 0.685/0.675 8,387,763 TROP 125,000 0.975/0.965 0.975/0.955 24,745,043 Source: Bursa Malaysia

(THE REMAINING OF THIS PAGE IS INTENTIONALLY LEFT BLANK)

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 2 504 8 www.ta.com.my

Page 11 of 11

For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE

No. Company Share Price Target Price Market Cap. EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg % upside Recom Beta (RM) (RM) (RMm) FY21 FY22 FY21 FY22 FY21 FY22 High Price % Chg Low Price % Chg YTD 27-Aug-21 AUTOMOTIVE 1 BAUTO 1.63 1.70 4.3% Buy 1,893 1.18 11.5 12.0 14.1 13.5 4.0 4.4 1.64 -0.6 1.11 47.2 13.7 2 MBMR 3.24 4.40 35.8% Buy 1,266 1.16 37.6 48.9 8.6 6.6 5.2 6.8 3.73 -13.1 2.58 25.6 -4.4 3 PECCA 3.03 2.50 -17.5% Sell 556 0.95 14.2 15.7 21.3 19.3 3.3 3.3 4.73 -35.9 1.04 192.7 95.1 4 SIME 2.35 2.98 26.8% Buy 15,986 0.82 16.4 18.2 14.3 12.9 6.4 5.4 2.54 -7.3 2.08 13.0 3.5 5 UMW 3.11 3.86 24.1% Buy 3,633 1.83 22.1 32.1 14.1 9.7 1.0 1.6 3.64 -14.6 2.19 42.0 -8.5

BANKS & FINANCIAL SERVICES 6 ABMB 2.53 2.90 14.6% Buy 3,917 1.15 23.2 28.5 10.9 8.9 2.3 3.2 3.06 -17.3 2.14 18.2 -13.1 7 AFFIN 1.74 2.00 14.9% Buy 3,696 1.10 16.7 19.9 10.4 8.7 2.9 4.0 2.04 -14.7 1.35 28.9 -5.4 8 AMBANK 3.02 3.40 12.6% Buy 10,008 1.08 29.1 33.1 10.4 9.1 0.0 0.0 3.79 -20.3 2.63 14.8 -17.3 9 CIMB 4.89 4.90 0.2% Buy 48,969 1.17 28.1 37.2 17.4 13.1 3.1 3.7 4.93 -0.8 2.90 68.6 13.7 10 HLBANK 19.00 23.00 21.1% Buy 41,187 1.15 127.1 144.4 14.9 13.2 2.1 2.4 19.68 -3.5 14.20 33.8 4.4 11 MAYBANK 8.37 10.10 20.7% Buy 97,873 0.92 71.1 79.6 11.8 10.5 6.6 7.2 9.01 -7.1 6.96 20.3 -1.1 12 PBBANK 4.18 4.70 12.4% Buy 81,137 1.37 27.8 31.3 15.0 13.4 3.6 3.8 4.97 -15.9 2.97 40.8 1.5 13 RHBBANK 5.51 6.60 19.8% Buy 22,417 1.10 61.1 70.9 9.0 7.8 4.0 4.5 5.98 -7.9 4.17 32.1 1.1 14 BURSA 7.51 9.40 25.2% Buy 6,078 1.05 42.1 38.6 17.8 19.5 4.8 4.0 9.66 -22.3 7.31 2.7 -8.7

BUILDING MATERIALS 15 ANNJOO 2.36 3.15 33.5% Buy 1,279 1.61 54.1 36.7 4.4 6.4 6.8 5.1 3.18 -25.8 0.56 321.4 50.3 16 CHINWEL 1.26 1.63 29.4% Buy 361 1.14 8.9 11.9 14.2 10.6 2.7 3.7 1.58 -20.3 0.94 34.8 12.5 17 CMSB 1.25 1.91 52.8% Buy 1,343 1.64 14.4 17.0 8.7 7.4 1.6 3.5 2.52 -50.4 1.03 21.4 -41.0 18 CSCSTEL 1.39 1.66 19.4% Buy 513 1.30 17.7 17.0 7.9 8.2 7.4 7.1 2.00 -30.5 0.81 72.7 3.0

CONSTRUCTION 19 GADANG 0.38 0.31 -18.4% Sell 277 1.54 2.7 3.5 14.0 10.8 0.8 1.3 0.50 -23.2 0.35 8.6 -14.6 20 GAMUDA 3.07 3.07 0.0% Sell 7,717 1.17 19.6 24.1 15.7 12.8 0.0 3.9 4.00 -23.3 2.60 18.1 -21.1 21 GDB 0.46 0.51 11.0% Buy 427 1.25 2.9 4.1 15.8 11.1 3.3 4.4 0.72 -36.8 0.35 30.0 -27.0 22 IJM 1.90 2.28 20.0% Buy 6,823 1.09 9.6 10.6 19.9 17.9 3.2 3.2 2.06 -7.8 1.22 55.7 9.8 23 INTA 0.29 0.45 57.9% Buy 153 1.09 3.5 5.0 8.2 5.7 3.5 5.3 0.40 -28.8 0.24 21.3 -6.6 24 KERJAYA 1.22 1.39 13.9% Buy 1,510 1.01 8.1 11.6 15.1 10.5 2.9 3.3 1.53 -20.3 0.89 37.1 15.1 25 SUNCON 1.68 1.64 -2.4% Hold 2,166 0.82 6.1 9.1 27.7 18.4 2.4 4.2 2.00 -16.0 1.50 12.0 -10.6 26 WCT 0.55 0.70 27.3% Buy 779 1.57 4.0 5.9 13.6 9.3 0.0 0.0 0.63 -12.5 0.35 56.5 4.8

CONSUMER Brewery 27 CARLSBG 22.40 27.50 22.8% Buy 6,849 1.22 61.0 80.3 36.7 27.9 2.2 3.6 24.96 -10.3 18.22 22.9 -3.6 28 HEIM 22.52 28.00 24.3% Buy 6,803 0.96 57.9 84.4 38.9 26.7 2.5 3.6 27.34 -17.6 17.86 26.1 -2.2 Retail 29 AEON 1.43 1.75 22.4% Buy 2,008 1.05 7.0 9.4 20.5 15.3 2.1 2.8 1.57 -8.9 0.67 113.4 33.6 30 AMWAY 5.59 7.05 26.1% Buy 919 0.61 40.7 42.0 13.7 13.3 5.8 5.8 5.94 -5.9 4.76 17.5 -2.0 31 F&N 27.68 40.00 44.5% Buy 10,152 0.58 117.5 129.3 23.6 21.4 2.3 2.5 33.38 -17.1 24.22 14.3 -13.7 32 FOCUSP 0.74 1.03 40.1% Buy 243 0.78 3.4 4.5 21.5 16.5 2.1 2.7 0.98 -25.0 0.31 139.7 14.8 33 HUPSENG 0.94 0.98 4.3% Sell 752 0.56 4.0 5.2 23.4 18.0 4.8 5.3 1.03 -8.7 0.91 3.9 -1.1 34 ABLEGLOB 1.56 2.30 47.4% Buy 480 1.24 13.9 17.4 11.2 9.0 4.0 4.8 2.08 -25.0 1.42 9.9 -22.4 35 LHI 0.68 1.05 54.4% Buy 2,482 1.04 5.1 5.8 13.3 11.6 2.3 2.6 0.83 -17.6 0.64 7.1 -0.7 36 NESTLE 134.70 140.00 3.9% Sell 31,587 0.46 253.8 281.7 53.1 47.8 1.8 2.1 144.50 -6.8 131.10 2.7 -3.0 37 PADINI 3.07 3.00 -2.3% Sell 2,020 1.00 9.1 14.5 33.8 21.1 0.8 2.4 3.37 -8.9 2.00 53.5 6.6 38 POHUAT 1.45 1.84 26.9% Buy 384 1.12 20.0 21.3 7.3 6.8 6.2 6.2 2.06 -29.6 1.31 10.7 -16.7 39 QL 5.55 7.00 26.1% Buy 13,507 0.55 9.5 11.0 58.1 50.6 0.6 0.6 7.20 -22.9 5.48 1.3 -4.3 40 SCIENTX 4.45 5.05 13.5% Buy 6,900 0.72 27.1 30.1 16.4 14.8 1.9 2.0 4.53 -1.8 2.97 50.0 5.3 41 SIGN 0.95 1.15 21.1% Buy 262 1.56 2.3 5.1 41.2 18.5 0.0 2.2 1.15 -17.4 0.29 223.9 75.9 Tobacco 42 BAT 14.02 15.70 12.0% Buy 4,003 0.93 101.1 103.5 13.9 13.5 6.8 7.0 16.20 -13.5 9.80 43.1 -0.4

GAMING Casino 43 GENTING 4.93 5.60 13.6% Buy 18,983 1.39 -8.3 23.8 na 20.7 0.0 3.2 5.53 -10.8 2.90 69.9 12.4 44 GENM 2.92 3.19 9.2% Hold 16,507 1.09 -18.3 12.9 na 22.7 2.1 3.4 3.31 -11.8 1.93 51.6 11.6 NFO 45 BJTOTO 1.97 2.27 15.2% Buy 2,644 0.70 13.5 6.3 14.6 31.1 4.1 4.1 2.27 -13.2 1.88 4.8 -10.0

HEALTHCARE Hospitals/ Pharmaceutical 46 DPHARMA 2.54 2.82 11.0% Buy 1,794 0.52 10.1 10.8 25.1 23.5 2.8 3.0 4.38 -42.0 2.35 8.1 -24.9 Note: DPHARMA proposed 1 for 3 bonus issue of shares. For more detail please refer to 04.05.21 report. 47 IHH 6.35 6.78 6.8% Hold 55,747 0.86 15.4 16.9 41.4 37.5 0.9 0.9 6.49 -2.2 4.85 30.9 15.5 48 KPJ 1.01 1.05 4.0% Sell 4,337 0.67 1.5 3.7 69.0 27.5 0.7 1.7 1.17 -13.7 0.82 23.9 1.0 Rubber Gloves 49 HARTA 7.25 10.30 42.1% Buy 24,777 1.06 84.4 123.5 8.6 5.9 7.0 10.2 19.24 -62.3 6.62 9.5 -40.3 50 KOSSAN 3.08 3.92 27.3% Buy 7,859 0.79 127.8 50.6 2.4 6.1 16.3 6.5 8.21 -62.5 2.93 5.1 -30.1 51 SUPERMX 3.20 2.71 -15.3% Sell 8,376 1.61 145.7 77.4 2.2 4.1 9.9 9.6 11.11 -71.2 3.02 6.0 -45.3 52 TOPGLOV 3.91 4.00 2.3% Hold 31,307 1.10 104.2 49.4 3.8 7.9 18.2 6.9 9.61 -59.3 3.64 7.4 -35.4

INSURANCE 53 ALLIANZ 12.96 17.52 35.2% Buy 2,301 0.84 275.5 311.1 4.7 4.2 4.5 5.3 15.38 -15.7 12.48 3.8 -12.3 54 TUNEPRO 0.45 0.49 8.9% Buy 338 1.27 2.9 6.0 15.4 7.5 1.3 5.3 0.52 -12.6 0.30 52.5 3.4

MEDIA 55 ASTRO 1.10 1.35 22.7% Buy 5,736 0.96 10.2 10.1 10.7 10.8 7.3 7.3 1.26 -12.7 0.71 54.9 21.5 56 MEDIA PRIMA 0.53 0.46 -13.2% Sell 588 1.17 3.8 4.7 14.0 11.2 2.1 2.7 0.75 -29.3 0.15 265.5 86.0 57 STAR 0.35 0.35 0.0% Sell 254 1.15 -3.6 -1.1 na na 0.0 0.0 0.48 -27.1 0.30 18.6 0.0

For Internal Circulation Only SNAPSHOT OF STOCKS UNDER COVERAGE

No. Company Share Price Target Price Market Cap. EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg % upside Recom Beta (RM) (RM) (RMm) FY21 FY22 FY21 FY22 FY21 FY22 High Price % Chg Low Price % Chg YTD

OIL & GAS 58 LCTITAN 2.58 3.08 19.4% Buy 5,876 1.36 42.8 24.8 6.0 10.4 4.7 1.6 3.54 -27.1 1.66 55.4 -6.9 59 MHB 0.39 0.46 19.5% Sell 616 1.67 -8.2 1.4 na 28.1 0.0 0.0 0.75 -48.3 0.30 28.3 -14.4 60 MISC 7.00 7.30 4.3% Buy 31,246 0.68 30.6 40.2 22.9 17.4 4.6 4.6 7.99 -12.4 5.96 17.4 1.9 61 PANTECH 0.54 0.64 18.5% Buy 414 1.07 3.6 5.7 15.1 9.4 4.3 3.2 0.58 -6.0 0.34 60.3 21.1 62 PCHEM 8.20 8.50 3.7% Hold 65,600 1.59 59.4 52.8 13.8 15.5 4.3 3.5 8.65 -5.2 5.16 58.9 10.4 63 SERBADK 0.43 0.28 -34.9% Sell 1,595 1.54 18.1 18.9 2.4 2.3 14.0 14.0 2.09 -79.4 0.31 41.0 -75.6 64 UZMA 0.67 0.81 20.9% Under Review 214 1.60 4.6 9.7 14.7 6.9 0.0 0.0 0.90 -25.1 0.36 88.7 18.6 65 VELESTO 0.15 0.19 26.7% Buy 1,232 1.77 -1.3 0.2 na 61.9 0.0 0.0 0.20 -23.1 0.11 42.9 7.1

PLANTATIONS 66 FGV 1.43 1.30 -9.1% Sell 5,217 1.16 3.4 2.8 41.9 50.3 1.4 1.4 1.67 -14.4 1.01 41.6 11.7 67 IJMPLNT 3.07 3.10 1.0% Accept Offer 2,703 1.18 15.3 16.3 20.0 18.8 3.3 3.3 3.10 -1.0 1.52 102.0 68.7 68 IOICORP 4.08 4.96 21.6% Buy 25,430 0.92 17.9 20.1 22.8 20.3 2.6 2.3 4.64 -12.1 3.54 15.3 -6.6 69 KLK 21.30 30.37 42.6% Buy 22,959 0.99 116.9 116.4 18.2 18.3 2.7 2.7 25.22 -15.5 18.52 15.0 -10.1 70 SIMEPLT 4.17 5.96 42.9% Buy 28,839 0.91 32.3 21.2 12.9 19.7 5.3 3.4 5.23 -20.2 3.27 27.5 -16.0 71 TSH 1.09 1.95 78.9% Buy 1,504 1.50 8.9 8.1 12.3 13.4 2.8 2.8 1.29 -15.5 0.91 20.4 -5.2 72 UMCCA 5.13 6.07 18.3% Buy 1,076 0.69 10.9 24.5 47.2 21.0 1.9 1.9 5.30 -3.2 4.43 15.8 0.6

PROPERTY 73 GLOMAC 0.35 0.45 30.4% Buy 265 0.70 4.9 4.5 7.0 7.6 2.9 2.9 0.47 -26.6 0.28 25.5 6.2 74 HUAYANG 0.29 0.38 31.0% Buy 102 1.06 -14.5 0.5 na 54.9 0.0 0.0 0.39 -25.6 0.21 38.1 3.6 75 IBRACO 0.51 0.65 27.5% Buy 253 0.68 4.9 8.2 10.4 6.2 2.9 2.9 0.68 -25.0 0.40 27.5 -1.9 76 IOIPG 1.27 1.82 43.3% Buy 6,993 0.94 14.4 12.6 8.8 10.0 1.6 2.4 1.77 -28.2 0.85 49.4 -18.1 77 MAHSING 0.83 1.02 23.6% Buy 2,003 1.35 6.4 9.7 12.9 8.5 3.4 4.8 1.47 -43.9 0.61 36.4 -5.2 78 SIMEPROP 0.63 0.75 19.0% Buy 4,285 1.13 2.6 3.5 24.7 17.8 2.4 2.4 0.76 -16.6 0.54 17.8 -5.3 79 SPSETIA 1.15 1.35 17.4% Buy 4,678 1.34 7.3 12.4 15.7 9.3 1.3 2.2 1.23 -6.5 0.66 74.2 16.2 80 SUNWAY 1.74 2.19 25.9% Buy 8,507 0.72 5.8 9.6 30.2 18.1 1.1 1.7 1.82 -4.4 1.22 42.6 8.1 REIT 81 CMMT 0.62 0.68 9.7% Hold 1,309 0.56 2.4 4.1 25.7 15.1 4.2 6.6 0.74 -16.2 0.59 6.0 -0.8 82 SUNREIT 1.43 1.37 -4.2% Sell 4,897 0.61 6.6 7.4 21.6 19.3 4.3 4.8 1.72 -16.9 1.34 6.7 -4.7

POWER & UTILITIES 83 MALAKOF 0.87 1.09 25.3% Buy 4,252 0.73 7.1 7.6 12.2 11.4 6.9 7.6 1.01 -13.9 0.80 8.7 -2.8 84 PETDAG 19.80 20.00 1.0% Hold 19,670 0.77 61.9 76.8 32.0 25.8 2.8 3.5 22.10 -10.4 17.08 15.9 -7.5 85 PETGAS 16.26 18.70 15.0% Buy 32,174 0.66 97.1 97.2 16.7 16.7 4.8 4.8 18.10 -10.2 15.24 6.7 -5.1 86 TENAGA 10.38 12.50 20.4% Buy 59,437 0.83 63.0 78.4 16.5 13.2 3.5 4.2 11.07 -6.2 9.15 13.5 3.5 87 YTLPOWR 0.71 0.85 20.6% Buy 5,712 0.96 4.8 5.4 14.8 12.9 0.0 7.1 0.79 -10.8 0.61 16.1 -5.4

TELECOMMUNICATIONS 88 AXIATA 4.04 4.60 13.9% Buy 37,058 1.04 11.1 16.8 36.5 24.0 2.4 3.6 4.23 -4.5 2.66 51.9 8.0 89 DIGI 4.35 4.50 3.4% Hold 33,821 0.82 14.7 17.0 29.6 25.5 3.2 3.7 4.50 -3.3 3.43 26.8 5.1 90 MAXIS 4.70 5.05 7.4% Buy 36,783 0.76 18.8 22.0 25.0 21.4 4.3 4.3 5.29 -11.1 4.23 11.1 -6.7 91 TM 6.06 7.00 15.5% Buy 22,869 0.61 30.3 32.9 20.0 18.4 2.8 3.0 6.82 -11.1 3.97 52.6 12.0

TECHNOLOGY Semiconductor & Electronics 92 ELSOFT 0.85 1.25 47.9% Buy 568 1.10 1.5 3.6 58.0 23.8 0.8 2.1 1.04 -18.7 0.59 44.4 6.3 93 INARI 3.43 4.25 23.9% Buy 12,634 0.79 9.7 11.3 35.4 30.2 3.2 2.7 3.75 -8.5 1.97 74.2 25.0 94 MPI 44.20 51.20 15.8% Buy 8,791 0.50 136.8 149.1 32.3 29.6 0.7 0.7 46.00 -3.9 16.00 176.3 70.3 95 N2N 0.77 1.20 55.8% Buy 460 1.33 4.3 4.6 18.0 16.7 3.9 3.9 0.92 -16.1 0.64 19.5 9.5 96 SKPRES 1.80 2.30 27.8% Buy 2,812 0.95 8.1 10.6 22.3 17.0 2.7 3.5 2.06 -12.5 1.12 60.7 4.7 97 UNISEM 8.60 11.80 37.2% Buy 6,936 0.59 28.4 33.8 30.3 25.5 1.0 1.2 9.43 -8.8 3.05 182.0 39.2 Note: UNISEM proposed 1 for 1 bonus issue of share. For more detail please refer to 02.08.21 report.

TRANSPORTATION Airlines 98 AIRASIA 0.91 1.18 30.4% Buy 3,528 1.67 -42.2 14.8 na 6.1 0.0 0.0 1.27 -28.7 0.51 77.5 2.3 Note: AIRASIA proposed 7-year redeemable convertible unsecured Islamic debt securities (RCUIDS) with 1 free warrant for every 6 shares held. For more detail please refer to 13.07.21 report. 99 AIRPORT 6.42 7.49 16.7% Buy 10,652 1.11 -44.8 26.3 na 24.4 0.0 1.8 6.83 -6.0 4.05 58.5 8.4 Freight & Tankers 100 PTRANS 0.60 1.04 74.8% Buy 378 1.04 7.9 8.8 7.6 6.7 5.3 6.6 0.93 -35.7 0.55 8.2 -23.7 101 TNLOGIS 0.86 1.22 42.7% Buy 440 0.92 -0.1 4.6 na 18.8 1.2 2.3 1.10 -22.3 0.39 122.1 -3.4 102 WPRTS 4.35 5.28 21.4% Buy 14,834 0.49 20.4 22.8 21.4 19.1 3.5 3.9 4.69 -7.2 3.66 18.9 1.2

SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE

No. Company Share Price Target Price Market Cap. EPS (cent) PER (X) Div Yield (%) 52week 52week % Chg % upside Recom Beta (S$) (S$) (S$m) FY21 FY22 FY21 FY22 FY21 FY22 High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES 1 DBS 30.10 37.30 23.9% Buy 77,302 1.15 246.7 265.0 12.2 11.4 3.3 4.0 31.74 -5.2 19.62 53.4 20.2 2 OCBC 11.55 15.70 35.9% Buy 52,056 1.03 103.1 117.3 11.2 9.8 3.3 3.7 12.77 -9.6 8.36 38.2 14.8 3 UOB 25.68 32.50 26.6% Buy 43,055 1.07 215.3 248.5 11.9 10.3 3.9 4.7 27.01 -4.9 18.85 36.2 13.7

PLANTATIONS 4 WILMAR 4.14 6.56 58.5% Buy 26,490 0.86 33.5 37.7 12.4 11.0 3.6 3.9 5.57 -25.7 3.95 4.8 -9.9

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.