Regional News Update

22 February 2021

By Ahmad Ramzani Ramli l [email protected]; Pritika Modhgil l [email protected]

Currency Exchange Research Highlights Currency Today 1-Week Chg (%) SINGAPORE NEWS HIGHLIGHTS USD/IDR 14,065.0 0.66% USD/SGD 1.32 -0.08% ⚫ DBS faces lawsuits in India after takeover of Lakshmi Vilas USD/THB 29.98 0.31% ⚫ Singapore latch onto electric-car market Singapore INDONESIA NEWS HIGHLIGHTS Indices Today 1-Week Chg (%) ⚫ Indonesia c.bank seen making this year's first rate cut on Thursday FSSTI 2,880.6 -1.53% ⚫ Indonesia's Bank Jago to turn fully digital; applauds new upcoming FSTFN 942.64 -1.17% regulations for financial services sector FSTCG 527.01 0.06% FSTTC 594.3 -1.18% THAILAND NEWS HIGHLIGHTS

⚫ Thailand's January auto sales plunge after Covid-19 resurgence Indonesia Indices Today 1-Week ⚫ Thai economic outlook highly uncertain, fiscal policy should continue — Chg (%) central bank JCI 6,231.9 0.15% JAKFIN 1,444.5 1.32% JAKAGRI 1,413.9 -1.83% JAKINFR 1,015.5 0.56%

Thailand Indices Today 1-Week Chg (%) SET 1,500.5 -0.52% SETBANK 372.1 -2.61% SETAGRI 316.8 20.68% SETCOMUN 135.1 -1.05%

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Regional News Update

22 February 2021

Singapore’s Corporate News

▪ DBS faces lawsuits in India after takeover of Lakshmi Vilas Bank

DBS Group Holdings, South-east Asia's largest lender, said it's facing lawsuits in India related to its recent takeover of a struggling local bank. Holders of Lakshmi Vilas Bank's equity shares and Tier-II bonds that were written off before the effective date of amalgamation took legal actions against DBS's local unit in various high courts in India, the Singapore-based lender said in a reply to questions from Bloomberg News. The acquisition was completed on Nov 27, DBS said earlier this month. (Source: The Straits Times)

▪ Singapore banks latch onto electric-car market

TWO of Singapore's largest lenders are banking on the local electric vehicle (EV) market following the return of Tesla, whose sales portal went “live” in the city state last week. On Monday, OCBC announced a new strategic partnership with local EV solutions firm Charge+ to encourage the widespread adoption of EV usage among its clients in Singapore. (Source: The Business Times) Indonesia’s Corporate News

▪ Indonesia c.bank seen making this year's first rate cut on Thursday

Indonesia's central bank is seen trimming its benchmark rate for the first time this year on Thursday, on top of the five rate cuts it has delivered since the start of the coronavirus pandemic, according to a majority of analysts in a Reuters poll. Bank Indonesia (BI) will cut the 7-day reverse repurchase rate by 25 basis points (bps) to 3.50%, the lowest since the central bank began using the instrument as its main policy rate in 2016,21 of 30 analysts in the poll predicted. (Source: The Star)

▪ Indonesia's Bank Jago to turn fully digital; applauds new upcoming regulations for financial services sector

Bank Jago is set to become the first fully digital bank in the country following its recent strategic partnership with ride-hailing and digital payment services firm Gojek. The small Indonesian bank is applauding the impending digital banking regulation by OJK -- Indonesia's Financial Services Authority -- saying it would allow its customers to open a bank account on an app run by partner Gojek. (Source: The Star)

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Regional News Update

22 February 2021

Thailand’s Corporate News ▪ Thailand's January auto sales plunge after Covid-19 resurgence Thailand's auto sales on the domestic market tumbled 21.3 per cent year on year in January to 55,208 units as the Covid-19 resurgence impacted the market demand, the Federation of Thai Industries (FTI) has announced. On a monthly basis, the auto sales plunged 46.96 percent compared with December. The second wave of coronavirus outbreak hit Thailand in mid-December when the auto sales climbed for the second month in a row, up 11.3 percent from one year earlier. In 2020, 792,146 vehicles were sold in the South-East Asian country, down 21.4 percent from the previous year. (Source: The Star)

▪ Thai economic outlook highly uncertain, fiscal policy should continue — central bank Thailand's economic outlook remained highly uncertain with large downside risks, so limited monetary policy room should be preserved to be used at the most effective time, minutes from the central bank's last policy meeting showed on Wednesday. The public sector should implement sufficient targeted and front-loaded measures to support an economic recovery after a recent coronavirus outbreak, the minutes said. (Source: The Edge)

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Regional Banking peers comparison based on Bloomberg estimation Local Share Market Price @ Cap Est. Est. Historical 19 Feb (USDm) CY20 P/E CY21 P/E Current PBV CY20 CY21 DPS Yield 12 Mth Div Company Names 2021 (x) (x) EPS CY21 EPS (x) ROE ROE (sen) (%) Yield Indonesia BANK CENTRAL ASIA TBK PT 34,125 59674.6 26.9 23.0 1039.5 1160.3 4.6 16.0 16.9 49002.8 1.4 1.6 BANK RAKYAT INDONESIA PERSER 4,790 41898.4 18.9 14.7 263.7 283.0 3.0 14.8 17.1 11124.3 2.3 3.5 BANK MANDIRI PERSERO TBK PT 6,375 21100.8 12.1 9.6 515.2 586.1 1.6 12.4 14.3 23136.6 3.6 5.5 BANK NEGARA INDONESIA PERSER 6,000 7936.2 11.1 7.1 821.3 836.6 1.0 8.6 12.6 9128.1 1.5 3.4 BANK DANAMON INDONESIA TBK 3,200 2218.3 9.7 7.8 431.6 389.4 0.7 7.3 8.2 8826.3 2.8 5.9 Simple Average 15.7 12.4 11.8 13.8 4.0

Singapore DBS GROUP HOLDINGS LTD 25.63 49413.6 11.5 10.2 2.2 2.5 1.2 10.6 11.4 109.6 4.3 4.0 OVERSEA-CHINESE BANKING CORP 10.54 35620.9 14.0 11.0 1.1 1.1 1.0 7.1 8.7 32.4 3.1 4.2 UNITED OVERSEAS BANK LTD 23.60 29822.1 13.9 11.4 2.4 2.6 1.0 7.3 8.7 78.1 3.3 4.8 Simple Average 13.1 10.8 8.3 9.6 4.3

Thailand SIAM COMMERCIAL BANK PUB CO 103.0 11669.1 11.4 10.0 12.7 12.9 0.9 7.3 7.9 419.5 4.1 3.9 BANGKOK BANK PUBLIC CO LTD 122.0 7769.9 9.1 8.0 18.9 19.3 0.5 5.6 6.1 491.7 4.0 4.1 KASIKORNBANK PCL 141.0 11146.2 10.0 9.1 16.1 16.2 0.8 7.3 7.6 373.7 2.7 3.2 KRUNG THAI BANK PUB CO LTD 12.1 5642.3 9.9 8.2 2.1 2.1 0.5 5.0 5.6 46.6 3.9 6.2 BANK OF AYUDHYA PCL 31.3 7669.4 9.1 8.7 3.4 4.3 0.8 8.5 8.1 66.2 2.1 1.4 Simple Average 9.9 8.8 6.7 7.1 3.8

Regional Average 12.9 10.7 9.1 10.2 4.0

Malaysia MALAYAN BANKING BHD 8.03 22672.7 14.1 12.5 0.7 0.7 1.1 7.7 8.4 35.3 4.4 1.7 CIMB GROUP HOLDINGS BHD 4.25 10432.3 27.4 11.0 0.5 0.5 0.8 2.6 6.5 7.0 1.6 2.8 PUBLIC BANK BERHAD 4.13 19830.8 16.8 15.0 0.3 0.3 1.7 10.7 11.2 9.9 2.4 1.9 BERHAD 17.78 9534.2 13.3 12.0 1.2 1.3 1.3 9.9 10.2 44.4 2.5 2.0 AMMB HOLDINGS BHD 3.23 2404.7 9.2 7.1 0.4 0.5 0.5 5.8 6.9 11.6 3.6 2.3 RHB BANK BHD 5.42 5376.5 10.4 9.1 0.6 0.6 0.8 8.1 8.7 21.3 3.9 1.8 ALLIANCE BANK BHD 2.65 1014.8 10.5 8.9 0.3 0.4 0.7 6.6 7.4 8.0 3.0 N.A. Simple Average 14.5 10.8 7.3 8.5 2.1

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Regional News Update

22 February 2021

Regional Plantation peers comparison based on Bloomberg estimation

Local Market Share Cap Price @ Best Historical (USDm) 19 Feb CY20 CY21 Current CY20 CY21 DPS Est. 12 Mth Company Names 2021 P/E (x) P/E (x) EPS CY21 EPS PBV (x) ROE ROE (sen) Yield (%) Div Yield Indonesia ASTRA AGRO LESTARI TBK PT 10,925 1491.4 24.4 19.0 832.7 317.6 1.1 4.4 5.6 11270.8 1.0 0.8 PP LONDON SUMATRA INDONES PT 1,285 621.8 21.8 18.0 82.9 36.8 1.0 4.6 5.4 1739.5 1.4 1.2 SAMPOERNA AGRO TBK PT 1,750 234.6 16.7 11.0 109.3 66.0 0.8 4.5 6.4 900.0 0.5 N.A. EAGLE HIGH PLANTATIONS TBK P 119 266.1 N.A. 39.7 N.A. N.A. 1.0 -16.7 2.1 N.A. N.A. N.A. BAKRIE SUMATERA PLANTATIO PT 116 20.6 N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. N.A. Simple Average 20.9 21.9 -0.8 4.9 1.0

Singapore WILMAR INTERNATIONAL LTD 5.57 26581.5 18.8 17.6 0.2 0.2 1.6 8.4 8.4 12.0 2.9 2.4 GOLDEN AGRI-RESOURCES LTD 0.19 1773.7 N.A. 12.7 0.0 0.0 0.4 (0.1) 3.4 0.3 2.1 3.1 OLAM INTERNATIONAL LTD 1.59 3838.2 9.9 9.4 0.1 0.2 0.9 N.A. N.A. 7.5 4.7 5.0 Simple Average 14.4 13.2 4.1 5.9 3.5

Regional Average 18.3 18.2 0.8 5.2 2.5

Malaysia BERHAD 2.19 3685.2 13.8 12.9 0.1 0.1 1.0 7.4 7.2 10.4 4.7 4.6 IOI CORP BHD 4.26 6600.7 27.5 26.0 0.2 0.1 2.9 10.1 10.5 9.6 2.3 1.9 KEPONG BHD 23.30 6216.5 23.3 23.3 0.9 0.6 2.3 9.7 9.6 58.7 2.5 2.1 GENTING PLANTATIONS BHD 9.50 2108.4 34.3 28.6 0.3 0.2 1.8 4.7 5.3 15.4 1.6 1.6 IJM PLANTATIONS BHD 1.74 379.0 17.6 17.4 0.1 0.0 1.2 6.8 7.2 3.4 2.0 1.1 TA ANN HOLDINGS BERHAD 2.91 317.1 13.5 12.1 0.2 0.1 0.9 6.3 6.7 10.6 3.6 5.2 Simple Average 21.7 20.0 7.5 7.8 2.8

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Regional News Update

22 February 2021

Regional Telco peers comparison based on Bloomberg estimation

Local Market Share Cap Price @ Best Est. Historical (USDm) 19 Feb CY20 CY21 Current CY21 CY20 CY21 PBV CY20 CY21 DPS Yield 12 Mth Company Names 2021 P/E (x) P/E (x) EPS EPS EV/EBITDA EV/EBITDA (x) ROE ROE (sen) (%) Div Yield Indonesia TELEKOMUNIKASI INDONESIA PER 3,210 22554.1 15.5 14.4 198.0 207.9 5.4 5.1 3.1 19.4 19.8 16075.2 5.0 4.8 XL TBK PT 2,140 1625.0 20.3 15.1 4.1 61.3 3.9 3.7 1.2 5.1 7.0 4111.1 1.9 0.9 INDOSAT TBK PT 5,700 2196.9 N.A. N.A. -345.6 -242.4 4.8 4.5 2.6 -3.7 -1.4 0.0 0.0 N.A. Simple Average 17.9 14.8 4.7 4.4 6.9 8.5 2.9

Singapore SINGAPORE TELECOMMUNICATIONS 2.35 29315.5 19.4 15.9 0.2 0.2 13.3 12.7 1.4 7.0 9.4 10.5 4.5 4.5 STARHUB LTD 1.28 1673.9 15.4 14.2 0.1 0.1 6.6 6.2 6.5 28.7 30.1 6.7 5.2 3.7 M1 LTD N.A. N.A. N.A. N.A. 0.1 0.1 N.A. N.A. N.A. 22.6 N.A. 9.3 N.A. N.A. Simple Average 17.4 15.1 9.9 9.5 19.4 19.7 4.1

Thailand ADVANCED INFO SERVICE PCL 170.0 16865.9 18.3 16.9 10.2 10.8 7.3 7.0 6.7 34.4 33.7 719.3 4.2 4.1 TOTAL ACCESS COMMUNICATION 31.5 2488.5 18.3 18.4 0.6 2.7 5.0 4.8 3.1 16.5 17.1 146.5 4.7 9.5 Simple Average 18.3 17.6 6.1 5.9 25.5 25.4 6.8

Regional Average 17.9 15.8 6.6 6.3 16.2 16.5 4.6

Malaysia MAXIS BHD 4.75 9192.2 25.4 23.5 0.3 0.2 12.3 11.7 5.2 20.3 21.6 16.8 3.5 3.6 AXIATA GROUP BERHAD 3.37 7644.1 38.7 29.1 0.1 0.1 5.3 5.2 2.0 4.9 6.2 7.9 2.3 1.9 DIGI.COM BHD 3.74 7193.2 24.6 23.5 0.2 0.2 11.5 11.2 48.0 195.2 199.0 15.1 4.0 4.4 BHD 6.48 6049.1 23.8 22.7 0.1 0.3 7.5 7.3 3.6 13.4 13.3 14.2 2.2 2.6 Simple Average 28.1 24.7 9.1 8.8 58.4 60.1 3.1

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Regional News Update

22 February 2021

Stock Ratings are defined as follows:

Stock Recommendations

OUTPERFORM : A particular stock’s Expected Total Return is MORE than 10% MARKET PERFORM : A particular stock’s Expected Total Return is WITHIN the range of -5% to 10% UNDERPERFORM : A particular stock’s Expected Total Return is LESS than -5%

Sector Recommendations***

OVERWEIGHT : A particular sector’s Expected Total Return is MORE than 10% NEUTRAL : A particular sector’s Expected Total Return is WITHIN the range of -5% to 10% UNDERWEIGHT : A particular sector’s Expected Total Return is LESS than -5%

***Sector recommendations are defined based on market capitalisation weighted average expected total return for stocks under our coverage.

This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies.

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KENANGA INVESTMENT BANK BERHAD (15678-H) Level 17, Kenanga Tower, 237, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia Telephone: (603) 2172 0880 Website: www.kenanga.com.my E-mail: [email protected]

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