REGIONAL DAILY

December 26, 2012

IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT.

MALAYSIA

Malaysia Daybreak | 1 October 2013

▌What’s on the Table…

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Plantations - Undervalued Sabah planters Sabah estates appear to be in demand, judging from the recent acquisitions by FGV and Boustead. In this piece, we scout for listed Sabah palm oil players that are trading at EV/ha valuations close to or below the recently transacted estates’ prices. If this buying spree continues, some of the smaller listed Sabah planters could be targeted. We came up with a list of seven listed companies that may be undervalued (Figure 1), based on only two criteria: (1) the bulk of their estates are in Sabah, and (2) they trade at attractive EV/planted ha (below the recently-transacted prices of estates in Sabah). We maintain our Neutral rating and our top picks First Resources, Wilmar and IOI.

Banks - Aug 13 tracker – loan applications taking the lead

Although loan growth remained flattish at 9.3% yoy in Aug 13, a 20%+ yoy jump in loan applications in Jul-Aug 13 points to stronger loan momentum in the coming months. The improvement should come mainly from the business loan segment. Our projected loan growth of 10.5-11.5% for 2013 will at least match last year’s rate of 10.6%. We also see minimal risk of an increase in impaired loan ratios. On the flip side, our concerns remain the margin compression and an upturn in credit costs, which underpin our unchanged Neutral stance on the sector. Maybank remains our top pick.

SapuraKencana Petroleum - You know the drill!

Get ready to grab the shares. SapuraKencana's record 2Q led to a record 1H with a core net profit that broadly met expectations at 45% of our full-year forecast and 42% of consensus, thanks to Seadrill's drilling rigs. We expect a stronger 2H on early Berantai contributions. Our target price rises as we roll forward. We now value the stock at 22.3x CY15 P/E (previously 21.8x CY14 P/E), a 40% premium over our CY15 target market P/E of 15.9x but still within the historical P/E range for oil & gas big caps. Strong order book momentum and more marginal field opportunities are the re-rating catalysts that support our Outperform call.

JT International - JTI joins the pack

Cypark Resources Bhd - Going more green

Economic Update - Consumers and businesses cold on credit

▌News of the Day…

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• Maybank's BII announced Taswin Zakaria as its new president director

• Mah Sing terminate purchase of 35.26-acre freehold tract Johor for RM365m

• Westport raised about RM2bn from its IPO, pricing it at the top of expectations?

• Ireka embarked on cost optimisation to mitigate rising construction cost

• XiDeLang Holdings proposed rights, bonus and warrants issue

• Average price new homes in 100 cities in China rose 9.48% yoy in Sep (8.61% in Aug)

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,550

1,600

1,650

1,700

1,750

1,800

1,850

Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13

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FBMKLCI

1768.62 -7.54pts -0.42%SEP Futures OCT Futures

1776 - (0.06% ) 1772 - (1.00% )———————————————————————————

Gainers Losers Unchanged227 558 261

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Turnover1853.17m shares / RM2377.351m

3m avg volume traded 1658.65m shares

3m avg value traded RM2002.15m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,769 3,168 4,316 1,383 22,860 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,768.62 (0.4) 4.7

FBM100 12,027.20 (0.5) 6.4

FBMSC 15,255.51 (0.8) 32.9

FBMMES 5,537.17 (0.6) 31.4

Dow Jones 15,129.67 (0.8) 15.5

NASDAQ 3,771.48 (0.3) 24.9

FSSTI 3,167.87 (1.3) 0.0

FTSE-100 6,462.22 (0.8) 9.6

Hang Seng 22,859.86 (1.5) 0.9

JCI 4,316.18 (2.4) (0.0)

KOSPI 1,996.96 (0.7) (0.0)

Nikkei 225 14,455.80 (2.1) 39.1

PCOMP 6,191.80 (2.9) 6.5

SET 1,383.16 (2.4) (0.6)

Shanghai 2,174.67 0.7 (4.2)

Taiwan 8,173.87 (0.7) 6.2

Close % chg Vol. (m)

MEDIA SHOPPE 0.185 0.0 113.4SILVER BIRD 0.130 (18.8) 64.6

DVM TECHNOLOGY 0.070 (6.7) 49.3

CHINA STATIONERY 0.225 (4.3) 44.5

GREEN PACKET 0.565 8.7 44.1

SERSOL 0.740 (26.7) 32.5

MALAYSIAN AIRLINE 0.335 (1.5) 30.2

INSTACOM GROUP 0.295 7.3 26.8

Close % chg

US$/Euro 1.3523 (0.04)RM/US$ (Spot) 3.2595 (0.05)

RM/US$ (12-mth NDF) 3.3220 0.01

OPR (% ) 2.93 (2.33)

BLR (% , CIMB Bank) 6.60 0.00

GOLD ( US$/oz) 1,330 0.05

WTI crude oil US spot (US$/barrel) 102.33 (0.52)

CPO spot price (RM/tonne) 2,300 0.00

Economic Statistics

Market Indices

Top Actives

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Terence WONG CFA T (60) 3 20849689 E terence.wong@cimb.com

Daybreak Malaysia

October 1, 2013

2

Global Economic News…

Emerging markets can better resist capital flow volatility by taking measures to encourage their residents to invest abroad in good times and repatriate the funds when needed, according to a study by the IMF. (Bloomberg)

Eurozone inflation rose 1.1% in Sep (1.3% in Aug), tad lower than median forecast of 1.2%. The core inflation rate, which excludes volatile food and energy costs, was 1%. (Bloomberg)

The final HSBC Purchasing Managers' Index (PMI) for China edged up to 50.2 from Aug's 50.1. (Reuters)

China’s leading index was largely unchanged at 99.86 in Aug (99.89 in Jul). (Bloomberg)

The average price of new homes in 100 cities in China rose 9.48% yoy in Sep (8.61% in Aug) to Rmb10,554 (US$1,700) per square metre, according to the independent China Index Academy. (CNA)

Japan's factory output slipped 0.7% mom in Aug (+3.4% in Jul). (Channel News Asia)

The Markit/JMMA Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 52.5 in Sep from 52.2 in the previous month, showin that manufacturing activity expanded at the fastest since Feb 2011. (Reuters)

India’s current account deficit was US$21.8bn in Apr to Jun (-US$18.1bn in Jan to Mar), though narrower than market estimate of US$23bn. (Bloomberg)

India’s fiscal deficit in the first five months (April-August) of the year crossed 74.6% of the annual projection, compared with 65.7% a year ago. The government also exhausted 87.4% of its revenue deficit target in the five months, compared with 79.2% in the same period a year ago. (Bloomberg, Livemint)

South Korea's industrial output grew 3.3% yoy in Aug (0.9% in Jul), the fastest pace in nine months on robust car and mobile phone production. (Channel News Asia)

South Korea’s consumer price index rose 0.8% yoy in Sep, decelerating from a 1.3 gain in Aug. (Bloomberg)

Indonesia’s M2 measure of money supply growth weakened to 12.9% yoy in Aug (14.7% in Jul). (Bloomberg, Bank Indonesia)

Thailand’s exports rose 2.5% yoy in Aug (-1.3% in Jul) while imports declined 2.4% (-0.2% in Jul). The trade surplus expanded to US$2.21bn from

Daybreak Malaysia

October 1, 2013

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US$0.26bn in Jul. The current account swung to a surplus of US$1.29bn (deficit of US$1.64bn in Jul). The overall balance posted a deficit of US$3.44bn compared with US$0.33bn in Jul. (Bloomberg)

Thailand’s business sentiment index decreased to 47.5 in Aug from 48.3 in Jul. (Bloomberg)

Thailand's current account balance returned to a US$1.28bn surplus in Aug (-US$1.64bn in Jul), better than market expectations for a US$0.7bn surplus. (Dow Jones)

Singapore’s credit growth slowed to 15.4% yoy in Aug (17.6% in Jul). Broad money supply growth (M2) inched lower to 7.1% (7.4% in Jul). (Bloomberg)

Prices of private resale homes rose just 0.1% mom in Aug from Jul, according to the latest Singapore Residential Price Index (SRPI). (CNA)

Loan growth (net of RRPs) in the Philippines quickened to 14.2% yoy in Aug (12.3% in Jul). Money supply (M3) increased 30.9% yoy (30.1% in Jul). (Bloomberg)

Malaysian Economic News…

Broad money or M3 growth moderated to 8.3% yoy in Aug (8.9% in Jul). Net financing to the private sector grew at a slower pace of 8.7% in Aug (9.2% in Jul) and total loans in the banking system rose 9.3% (9.2% in Jul). (Bank Negara Malaysia)

Kindly refer to our Economic Update for more details

The producer price index (PPI) for domestic economy dropped 2.6% yoy in Aug (-3% in Jul) with local production index and import price index decreased by 3.4% and 1.1% respectively (-3.6% and -1.6% respectively in Jul). On a mom basis, PP for domestic economy increased by 0.4% (+0.3% in Jul) with local production index rising 0.5% (+0.3% in Jul) and import price index up 0.2% (+0.5% in Jul). (Department of Statistics)

Deputy Works Minister Datuk Rosnah Abdul Rashid Shirlin said the government has no plans to takeover toll highways in the country as it will involve a staggering RM400bn. The large amount could be used for programmes beneficial to the people, she said. (Bernama)

The subsidy rationalisation carried out recently was a long-term measure to reduce government liability and not due to economic crisis, said Deputy Finance Minister Datuk Ahmad Maslan. The government resolved to ensure that the debt level would not exceed 55% of the GDP while expenditure would not exceed revenue. "The government is confident that the efforts and other initiatives that will be announced in Budget 2014 will continue to drive economic growth and meet the target of achieving developed country status," he said. (Bernama)

Daybreak Malaysia

October 1, 2013

4

About 600,000 Small and Medium Enterprises (SMEs) have been given permission to postpone the minimum wage implementation until Dec, said Deputy Human Resource Minister Datuk Ismail Abd Mutallib. The employers need more time to restructure operations and cut down losses before starting the minimum wage implementation, he said. For SMEs that hire foreign workers, he said levy payment would be paid by foreign workers themselves while employers were allowed to deduct up to RM50 from salaries for housing facilities. (Bernama)

Minister of International Trade and Industry Datuk Seri Mustapa Mohamed announced the appointment Datuk Noraini Ahmad as Chairman of Malaysia External Trade Development Corporation (Matrade) effective 1 Oct 2013. She will replace Datuk Mah Siew Keong who held the post since Sep 2010. (Bernama)

Bank Simpanan Nasional (BSN), which serves as a platform for government initiatives such as SPTB and the Teksi 1Malaysia (TEKS1M) scheme, received 2,915 applications for its Budget Taxis Loan Scheme (SPTB), while approving 2,208 loans worth RM92m as of 18 Sep this year. To date, the bank has disbursed a total of RM70m.

It received a total of 781 TEKS1M applications as of 18 Sep this year involving tax drivers in Kuala Lumpur, Penang and Johor Bahru.

Seventy-three of the applications have been approved, while another 18 were rejected. (Bernama)

The Government will consider getting a mandate from the Parliament before signing the controversial Trans-Pacific Partnership Agreement (TPPA), International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Monday. The move was among efforts by the government to open up the avenue for several issues to be debated in Parliament in order for the people to fully accept the agreement without any confusion, he said. However, he said the time frame to bring the negotiations, which are still at discussions stage, to Parliament has not been decided. (Bernama)

The government is expected to announce the implementation of value-for-money spending initiative for federal ministries in the Budget 2014 to be tabled on 25 Oct. Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said that the first phase of the initiative would involve four ministries, including Finance. "Hopefully, by the Budget 2015, we can cover all the ministries," he said.

On fiscal deficit, he said the reason the government can achieve the 4% deficit or even lower this year, is due to very significant revenue growth, mainly in tax collection.

"Next year, with the subsidy rationalisation and other measures, we should be able to achieve the 3.5% deficit," he added.

On talk that the subsidy for sugar may be reduced to cover the extra BR1M cost, Husni said:" That has not been decided. We will see to the overall needs of the people.” (Bernama)

The national broadband penetration rate reached 67.1% as of Aug this year (vs. 66.6% in 1Q13), the Dewan Rakyat was told yesterday. Deputy Communication and Multimedia Minister Datuk Jailani Johari said this was reached through the implementation of various programmes under the National Broadband Plan.

Daybreak Malaysia

October 1, 2013

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This includes the 1Malaysia Wireless Village, 1Malaysia Internet Centre, Small Community Broadband Centre, Broadband Library, and extension of cellular coverage and the 1Malaysia Computer Programme.

He clarified that the ministry had no plans to discontinue the wireless village project despite implementation having exceeded the target. (The Sun)

A total of 412,245 borrowers did not service their National Higher Education Fund Corporation (PTPTN) loans as at 31 Aug, said Education Minister Tan Sri Muhyiddin Yassin. Of the total, Malays formed the largest number of defaulters at 328,550, followed by the Chinese (55,445) and Indians (28,250).

There were currently 1.24m PTPTN borrowers.

The enforcement implemented included blacklisting errant borrowers from going overseas, as well as summonses to raise defaulters' awareness, understanding and responsibility to repay their loans. (Bernama)

The work progress of the extension project for the Ampang and Kelana Jaya light rail transit (LRT) is at 41.5% as of 30 Aug, PM Datuk Seri Najib Tun Razak said. He said work on the project, delayed by 19.8%, was expected to be ready in 1Q16.

The delay in the completion date is due to problems that surfaced during construction work, especially technical matters, like finding of underground cables and pipes that have to be shifted.

Apart from that, it is due to problems in getting accurate information on the location of the underground cables and pipes, change in the design of the support structure after taking into account suitability and condition of the soil and geology at the construction site.

The cost of the project was still at its original cost of RM8bn as it was conducted through the open tender. (Bernama)

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah was tight-lipped on whether the government will reduce sugar subsidy for the second time in the 2014 Budget. He said the government is monitoring the situation. “Everything is in place but we will do the finetuning two weeks before the Budget announcement,” he said after officiating at the Khazanah Megatrends Forum 2013, here, yesterday. (BT)

Johor has no plans to increase the current RM500,000 threshold for foreigners buying residential properties in the state to RM1m. Mentri Besar Datuk Seri Mohamed Khaled Nordin said that increasing the ceiling price to RM1m for foreign buyers would have a "negative impact" on Johor property market. (Starbiz)

Political News…

MCA is set to hold an extraordinary general meeting to censure deputy president Datuk Seri Liow Tiong Lai for refusing to accept the collective decisions of the party. The 20 petitioners from the central committee - more than the one-third required to call for an EGM - said that Liow had provoked infighting after the May 5 general election. (Star)

Daybreak Malaysia

October 1, 2013

6

Corporate News…

Maybank's subsidiary, Bank Internasional Indonesia (BII) announced the appointment of its new president director, Taswin Zakaria. Taswin, 45, an Indonesian national, has served as an independent member of BII Board of Commissioner since 2004.

"Taswin’s deep knowledge of the Indonesian business environment, extensive cross-geographical financial institution experience, and intimate knowledge of BII operations through being one of our commissioners there for the last nine years, makes him our choice candidate to lead BII at this stage in our transformation journey," said Tan Sri Megat Zaharuddin Megat Mohd Nor, the President Commissioner of BII and Maybank chairman.

Taswin will replace former BII president director Datuk Khairussaleh Ramli, who resigned on 4 Sep 13.

Taswin, with a Bachelor of Science in Business Administration degree in Accounting, Cum Laude (Honors) from The Ohio State University, started his banking career at Citibank NA in Jakarta. He was the president director of PT Indonesia Infrastructure Finance between 2010 and 2011; and prior to that, worked at Barclays Bank Plc; and Deutsche Bank AG in Jakarta. (BT)

We are positive that BII has appointed a new president director (PD) within a short period of time since the departure of its ex-PD, Datuk Khairussaleh Ramli on 4 Sep 13. The speed of appointing a new PD within less than one month is in fact faster than our expectation. Looking at the background of Taswin, who has extensive experience in the Indonesia’s financial sector as well as BII, we believe that he has what it takes to lead BII and continue to push through the transformation programme.

In yesterday's EGM, Mah Sing received shareholders' approval for the acquisition of a 35.26-acre freehold tract in Senibong, Johor for a total consideration of RM365.55m. However, in an announcement to Bursa Malaysia yesterday, Mah Sing said the sale and purchase agreement was terminated at the last minute, as the group had failed to secure the consent of owners of the neighboring land parcels to construct an access road to the planned development on the site. (Financial Daily)

The termination of the SPA is a negative surprise and would cut RNAV estimate by around 8% or 30 sen. This is bad news and a setback to the company as the project was estimated to have a GDV of RM4.35bn. But Mah Sing has reassured that the company is aggressively scouting for more landbank to offset the loss.

Khazanah Nasional Bhd will be opening an office in Istanbul, Turkey, soon. Khazanah's MD Tan Sri Azman Mokhtar said the office, to be officially opened this month, will be its fourth overseas. It will handle Khazanah's investments in that part of the world, particularly in the Middle East, Azman said at the Khazanah Megatrends Forum 2013 here yesterday. Khazanah opened its third foreign office in San Francisco. (BT)

There is a slight (19.8%) delay in the completion of the Kelana Jaya and Ampang light rail transit (LRT) line extension projects but they are expected to be completed in the 1Q2016. Prime Minister Datuk Seri Najib Razak said the delay was brought about by technical problems in the construction. They included difficulty in locating the cables and underground pipes and shifting them before placing the supporting structures of the LRT line. (The Edge)

Daybreak Malaysia

October 1, 2013

7

IOI Properties Bhd is banking on the trend in the fastest-growing economic growth corridor in the country by launching its latest project Marina Cove - a waterfront development overlooking the straits of Johor. General manager Lim Beng Yeang said the project, on a 15.25ha site along the Tebrau-Plentong Basin, would be developed over the next 12 years, with a gross development value of RM4.5bn.

The project comprises 35 storeys of six blocks of serviced apartments housing 724 units at a built-up area of between 526 sq ft and 1,344 sq ft priced between RM370,000 and RM1.2m per unit. Other components in the development are a complex and a hotel tower. (StarBiz)

Pusaka Capital Sdn Bhd (PCSB) a special-purpose vehicle incorporated by Sarawak Timber Industry Development Corp (STIDC), is expected to generate an estimated project value of at least RM3.8bn via re-organisation and rationalisation (RR) agreement signed by both parties yesterday. The identified projects for PCSB range from the development of palm oil industry clusters (POICs) and related ports and logistic infrastructure investments such as the independent operating terminals as well as the establishment of new administrative centres and townships for Tanjung Manis in Sarawak)

China-based XiDeLang Holdings Ltd plans to raise between RM42.45-RM111.9m under a corporate exercise to fund its new design and production centre. The company, which makes sport shoes and sportswear, has proposed a proposed renounceable rights issue of up to 322.7m new shares at an issue price of 35 sen per rights share. The corporate exercise includes the proposed issuance of 242m free detachable warrants and an attached bonus issue of up to 242m new shares. XiDeLang said this would be on four rights shares together with three free warrants and three bonus shares for every existing shares.

The new centre is a two-stage development that caters for the design and manufacture of sports shoes and apparel, located at in an upcoming commercial district of Jinjiang City. The first stage of the new centre has been completed in the first quarter of 2013 with eight buildings spanning 51,700sqm, comprising production, dormitory, administration and warehouse space.

The second stage of the centre will primarily be utilised for the development of the group’s management offices, e-commerce centre, research and development centre, product showroom and senior management dormitories. (Starbiz)

Westports Holdings Bhd, the operator of Malaysia's busiest port, has raised about RM2bn from its IPO, pricing it at the top of expectations, two sources with direct knowledge of the deal said on Monday.

The IPO for Westports is likely to be the country's second largest this year behind UMW Oil & Gas Corporation Bhd, an offshore and drilling services firm, which is looking to raise US$740m. .Westports, which is partially owned by Hong Kong billionaire Li Ka-shing, priced the offering at RM2.50/share versus an indicative price range of RM2.30-2.50 said the sources, who were not authorised to speak publicly on the matter.

All proceeds from the offering will go to existing shareholders and not to the company which has said it is listing to raise awareness of its brand. The company leaned heavily on cornerstone investors, ranging from Utilico Emerging Markets to Genesis Investment Management, who accounted for close to 48% of the total institutional tranche. (Starbiz)

Daybreak Malaysia

October 1, 2013

8

IREKA Corp Bhd has embarked on cost optimisation to mitigate rising construction cost, which is causing its margins to shrink, said its executive director Lai Voon Hon. The company, which in the past had enjoyed profit margins of more than 14%, is now recording close to 10%. "It's not possible to achieve margins of 14 to 15% but we will try to get the highest level," Lai said after the company's shareholders' meeting, here, yesterday.

Ireka has RM1.1bn worth of jobs that would take three years to complete. They are Imperia Puteri Harbour serviced apartments and offices in Johor; MRT elevated viaduct civil works package V7; Solstice@Pan'gaea mixed office and apartments in Cyberjaya; The RuMa Hotel and Residence in Kuala Lumpur; and KL Eco City Vogue Suites. Its property development division is launching six projects over the next two years in Nilai, Kajang and Kuala Lumpur, worth a combined RM2.2bn. (BT)

Asia File Corp Bhd, which expects its growth to be driven by overseas markets, is supportive of any free trade pacts by Malaysia. Citing savings of between 3-6% in duty charges if a free trade agreement (FTA) is inked with countries it does business with, chairman Lim Soon Huat said: "FTAs between Malaysia and any country would support Asia File since they benefit those (companies) that are efficiently managed."

Asia File has manufacturing plants in Penang, Germany and the United Kingdom. Speaking after the company's annual shareholders' meeting here, Lim said the company expects sales to domestic markets to reduce as it continues to leverage on the aggressive expansion of its products and customer base overseas. (BT)

Chemical Company of Malaysia Bhd (CCM) has entered into a sale and purchase agreement with its major shareholder, Permodalan Nasional Bhd, to sell two parcels of freehold land in Kuala Lumpur measuring 187,034 sq ft to the later for a total of RM74.8m. CCM said the disposal would include three units of double-storey detached houses. Both land parcels are located along Jalan Tun Ismail in Bukit Tunku. (Financial Daily)

Johor Corporation through its subsidiary Langsat Marine Terminal Sdn Bhd (LMT) will develop port and logistics facilities on 21ha of land at Tanjung Langsat with an investment of RM48m. The project will be done in partnership with Port Services International Sdn Bhd (PSI), which has expertise in port handling, maritime services and logistics solutions.

PSI will handle the construction of the warehouse and provision of warehousing and open storage facilities.

The project would be on a 30-year lease, with LMT as owner and financing faciliites provider. (Bernama)

Daybreak Malaysia

October 1, 2013

9

BMSB: Changes in shareholdings

Type of No of Ave Price

30-Sep-13 Date transaction securities Company (RM)

EPF 25/9 Disposed 5,800,000 MAXIS

EPF 25/9 Disposed 3,514,200 AXIATA GROUP

EPF 25/9 Disposed 3,250,000 SAPURAKENCANA PETROLEUM

EPF 25/9 Disposed 3,249,900 YTL CORPORATION

EPF 24/9-25/9 Disposed 2,583,200 ALLIANCE FINANCIAL GROUP

EPF 25/9 Disposed 1,530,400 KPJ HEALTHCARE

EPF 25/9 Disposed 1,424,100 IHH HEALTHCARE

EPF 25/9 Disposed 950,000 DIALOG GROUP

EPF 25/9 Disposed 746,200 IJM CORPORATION

EPF 25/9 Disposed 640,400 BURSA MALAYSIA

EPF 25/9 Disposed 625,300 WAH SEONG CORPORATION

EPF 25/9 Disposed 546,700 IOI CORPORATION

EPF 25/9 Disposed 518,100 KUALA LUMPUR KEPONG

EPF 25/9 Disposed 384,600 IGB CORPORATION

EPF 25/9 Disposed 347,200 PERISAI PETROLEUM 

EPF 24/9 Disposed 257,000 DRB-HICOM

EPF 25/9 Disposed 205,000 MALAYSIA AIRPORTS 

EPF 25/9 Disposed 105,300 ORIENTAL HOLDINGS

EPF 25/9 Disposed 99,200 CAHYA MATA SARAWAK

EPF 25/9 Disposed 85,300 HONG LEONG BANK

EPF 25/9 Disposed 34,900 PETRONAS DAGANGAN

EPF 25/9 Disposed 30,000 MBM RESOURCES

EPF 25/9 Disposed 25,000 TIME DOTCOM

EPF 25/9 Disposed 13,000 PUBLIC BANK

Skim Amanah Saham Bumiputera 23/9-24/9 Disposed 4,965,000 AXIATA GROUP

Skim Amanah Saham Bumiputera 23/9-24/9 Disposed 4,000,000 TENAGA NASIONAL

Lembaga Tabung Haji 23/9-24/9 Disposed 133,000 MUHIBBAH ENGINEERING

WELLINGTON MANAGEMENT CO, LLP 23/9-26/9 Disposed 273,700 AIRASIA

Aberdeen Asset Management Asia 26/9-27/9 Disposed 24,000 SHANGRI-LA HOTELS

Aberdeen Asset Management Asia 25/9 Disposed 22,200 AEON CO. (M)

Aberdeen International Fund Managers 25/9 Disposed 22,200 AEON CO. (M)

Aberdeen Asset Managers 25/9 Disposed 22,200 AEON CO. (M)

Aberdeen Asset Management PLC 25/9 Disposed 66,600 AEON CO. (M)

Aberdeen Asset Management PLC 26/9-27/9 Disposed 39,400 SHANGRI-LA HOTELS

Aberdeen Asset Management PLC 26/9 Disposed 40,000 BRITISH AMERICAN TOBACCO

Mitsubishi UFJ Financial Group Inc 24/9 Disposed 400,000 CIMB GROUP

Mitsubishi UFJ Financial Group Inc 24/9 Disposed 1,400 POS MALAYSIA

EPF 25/9 Acquired 4,359,500 CIMB GROUP

EPF 25/9 Acquired 1,748,900 DIGI.COM

EPF 25/9 Acquired 974,400 TELEKOM MALAYSIA

EPF 24/9 Acquired 587,400 AXIATA GROUP

EPF 25/9 Acquired 300,000 WCT HOLDINGS

EPF 25/9 Acquired 244,700 TENAGA NASIONAL

EPF 25/9 Acquired 138,000 PERDANA PETROLEUM

EPF 25/9 Acquired 79,700 TAN CHONG MOTOR

EPF 25/9 Acquired 50,000 PETRONAS GAS

EPF 25/9 Acquired 46,400 MAH SING GROUP

EPF 25/9 Acquired 37,000 BRITISH AMERICAN TOBACCO

EPF 25/9 Acquired 5,400 IJM LAND

EPF 25/9 Acquired 2,300 GENTING PLANTATIONS

YTL POWER INTERNATIONAL 30/9 Shares Buy Back 8,882,000 YTL POWER INTERNATIONAL 1.76

IGB CORPORATION 30/9 Shares Buy Back 347,200 IGB CORPORATION 2.60 SOURCES: BMSB

Daybreak Malaysia

October 1, 2013

10

BMSB: ESOS & others

1-Oct-13 No Of New Shares Date of Listing Nature of transaction

ALAM MARITIM RESOURCES 1,697,500 01-Oct-13 Exercise of ESOS

LITRAK 43,000 02-Oct-13 Exercise of ESOS

UCHI TECHNOLOGIES 20,700 02-Oct-13 Exercise of ESOS SOURCES: BMSB

BMSB: Off-market transactions

30-Sep-13 Vol

KEURO 115,400,000

KTB 12,257,200

EAH 10,168,600

SUNWAY 10,000,000

YTLPOWR 10,000,000

MTRONIC 2,160,000

ETITECH 2,000,000

EKOVEST 1,095,000

ENGTEX 1,000,000 Notes:CN-Crossing deal on board lots

MN-Married deal on board lots MO-Married deal on odd lots

SOURCES: BMSB

BMSB: Dividends

Company Particulars Gross DPS (Sen) Ann Date Ex-Date Lodgement Payment

BERJAYA SPORTS TOTO 1st interim - single tier 4.00 12-Sep-13 1-Oct-13 3-Oct-13 17-Oct-13

E&O BHD 1st & Final 4.50 29-Oct-13 8-Oct-13 10-Oct-13 7-Nov-13

MUDAJAYA 2nd Interim - single tier 3.00 28-Aug-13 23-Oct-13 25-Oct-13 22-Nov-13

HONG LEONG BANK Final dividend 30.00 30-Sep-13 25-Oct-13 29-Oct-13 13-Nov-13 SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

1-Oct-13 Ann Date Proposed

Kossan Rubber Iindustries 2-Sep-13 Bonus issue 1:1

BIMB Holdings 18-Sep-13 2 Rights Issue @ RM3.60 & 2 Free Warrants : 5 SOURCES: BMSB

BMSB: New Listing

Company Issue price Listing sought Tentative

Public Issue Offer for sale Private placement listing date

WESTPORTS HOLDINGS 2.50 - 813,190,000 - Main Market 18-Oct-13

No of shares

SOURCES: BMSB

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Corporate Actions

October 2013

SUN MON TUE WED THU FRI SAT

1 2 3 4 5

External Trade

6 7 8 9 10 11 12

External Reserves IPI, Manufacturing Sales

Top Glove 4Q Umno Youth and Puteri elections

13 14 15 16 17 18 19

Hari Raya Qurban Umno supreme council elections

20 21 22 23 24 25 26

External Reserves CPI Budget 2014

27 28 29 30 31

Money Supply, PPI

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

November 2013

SUN MON TUE WED THU FRI SAT

1 2

3 4 5 6 7 8 9

Awal Muharram MPC External Trade

10 11 12 13 14 15 16

IPI, Manufacturing Sales, External Reserves

GDP, BOP

17 18 19 20 21 22 23

CPI External Reserves

24 25 26 27 28 29 30

Money Supply, PPI

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Governance Report:

The disclosure of the survey result of the Thai Institute of Directors Association (―IOD‖) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information.

The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CIMBS does not confirm nor certify the accuracy of such survey result.

Score Range 90 – 100 80 – 89 70 – 79 Below 70 or No Survey Result

Description Excellent Very Good Good N/A

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sale of investments under any subscription agreement or the conclusion of any other contract of whatsoever nature within the territory of the United Arab Emirates.

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Recommendation Framework #1 *

Stock Sector OUTPERFORM: The stock's total return is expected to exceed a relevant benchmark's total return by 5% or more over the next 12 months.

OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index over the next 12 months.

NEUTRAL: The stock's total return is expected to be within +/-5% of a relevant benchmark's total return.

NEUTRAL: The industry, as defined by the analyst's coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months.

UNDERPERFORM: The stock's total return is expected to be below a relevant benchmark's total return by 5% or more over the next 12 months.

UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index over the next 12 months.

TRADING BUY: The stock's total return is expected to exceed a relevant benchmark's total return by 5% or more over the next 3 months.

TRADING BUY: The industry, as defined by the analyst's coverage universe, is expected to outperform the relevant primary market index over the next 3 months.

TRADING SELL: The stock's total return is expected to be below a relevant benchmark's total return by 5% or more over the next 3 months.

TRADING SELL: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant primary market index over the next 3 months.

* This framework only applies to stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand, Jakarta Stock Exchange, Australian Securities Exchange, Taiwan Stock Exchange

and National Stock Exchange of India/Bombay Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily outside the prescribed ranges due to extreme market volatility or other

justifiable company or industry-specific reasons.

CIMB Research Pte Ltd (Co. Reg. No. 198701620M)

Recommendation Framework #2 **

Stock Sector

OUTPERFORM: Expected positive total returns of 10% or more over the next 12 months. OVERWEIGHT: The industry, as defined by the analyst's coverage universe, has a high number

of stocks that are expected to have total returns of +10% or better over the next 12 months.

NEUTRAL: Expected total returns of between -10% and +10% over the next 12 months. NEUTRAL: The industry, as defined by the analyst's coverage universe, has either (i) an equal

number of stocks that are expected to have total returns of +10% (or better) or -10% (or worse), or

(ii) stocks that are predominantly expected to have total returns that will range from +10% to -10%;

both over the next 12 months.

UNDERPERFORM: Expected negative total returns of 10% or more over the next 12 months. UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, has a high number

of stocks that are expected to have total returns of -10% or worse over the next 12 months.

TRADING BUY: Expected positive total returns of 10% or more over the next 3 months. TRADING BUY: The industry, as defined by the analyst's coverage universe, has a high number

of stocks that are expected to have total returns of +10% or better over the next 3 months.

TRADING SELL: Expected negative total returns of 10% or more over the next 3 months. TRADING SELL: The industry, as defined by the analyst's coverage universe, has a high number

of stocks that are expected to have total returns of -10% or worse over the next 3 months.

** This framework only applies to stocks listed on the Korea Exchange, Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Occasionally, it is permitted for the total expected returns

to be temporarily outside the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.

Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2012.

AAV – not available, ADVANC - Excellent, AEONTS – Good, AMATA - Very Good, ANAN – not available, AOT - Excellent, AP - Very Good, BANPU - Excellent , BAY - Excellent , BBL - Excellent, BCH – not available, BCP - Excellent, BEC - Very Good, BGH - not available, BJC – Very Good, BH - Very Good, BIGC - Very Good, BTS - Excellent, CCET - Good, CENTEL – Very Good, CK - Very Good, CPALL - Very Good, CPF - Very Good, CPN - Excellent, DELTA - Very Good, DTAC - Very Good, EGCO – Excellent, ERW – Excellent, GLOBAL - Good, GLOW - Very Good, GRAMMY – Excellent, HANA - Very Good, HEMRAJ - Excellent, HMPRO - Very Good, INTUCH – Very Good, ITD – Very Good, IVL - Very Good, JAS – Very Good, KAMART – not available, KBANK - Excellent, KK – Excellent, KTB - Excellent, LH - Very Good, LPN - Excellent, MAJOR - Good, MAKRO – Very Good, MCOT - Excellent, MINT - Very Good, PS - Excellent, PSL - Excellent, PTT - Excellent, PTTGC - Excellent, PTTEP - Excellent, QH - Excellent, RATCH - Excellent, ROBINS - Excellent, RS – Excellent, SAMART – Excellent, SC – Excellent, SCB - Excellent, SCC - Excellent, SCCC - Very Good, SIRI - Good, SPALI - Very Good, SRICHA – not available, SSI – not available, STA - Good, STEC - Very Good, TCAP - Very Good, THAI - Excellent, THCOM – Very Good, TICON – Very Good, TISCO - Excellent, TMB - Excellent, TOP - Excellent, TRUE - Very Good, TTW – Very Good, TUF - Very Good, VGI – not available, WORK – Good.

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