DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision.

CREDIT SUISSE SECURITIES RESEARCH & ANALYTICS BEYOND INFORMATION™

Client-Driven Solutions, Insights, and Access

10 December 2015

Asia Pacific

Equity Research

Investment Strategy

Jump-Start STRATEGY

Jump-Start aims to provide you with a summary of the week that was and helps you prepare

for the week ahead with a results calendar, economic forecasts and valuation summaries.

India Market Strategy – 2016: More "prefer local, be wary of global". India macro

indicators continue to look good, and it remains among the fastest nominal GDP and earnings

growths economies. Global weakness though could be an overhang, and divergence between

markets and the domestic economy could persist. Though, we expect a slower pace of EPS

cuts. Market returns could track EPS growth: the risk is global volatility. Despite rich valuations

we stay OVERWEIGHT consumption (best play on broad-based pick-up; pay commission),

and UNDERWEIGHT Financials (asset quality). OUTPERFORM: TechM, HUL, ULTC, TaMo.

Recommend shedding positions in SBI and Bharti. (Link)

Tata Motors Ltd – Shifting up a gear. JLR is entering a phase where volume growth looks set

to accelerate to >20% in 2HFY16E/FY17E from 0% in 1HFY16 on a combination of both a strong

product cycle and a low base in China and Russia. JLR's ~33% decline in China volumes in 1H

was a combination of both a market slowdown and JLR product cycle issues. With both of them

starting to reverse we believe volume growth in China will reach double digits soon. (Link)

China Basic Materials Sector – 2016 outlook: Supply solution. We view 2016E a year of

weaker demand, with continued undershoot of commodity prices below cash costs. But it

should also be a year when supply exits start to emerge, regardless of government plans,

driven by unprecedented losses and financial distress. While earnings will continue to struggle,

equities will start to factor in the early benefit of potential industry supply solutions, in our view.

Our most preferred segment is paper, followed by steel, copper, and cement, and we remain

negative on aluminium and coal. Our top picks are Lee & Man, Conch and Zijin; least preferred

are CNBM, Yanzhou and Chinacoal. (Link)

Indonesia Media Sector – Lights, camera...waiting for action. We assume coverage of the

Indonesia media sector with an OVERWEIGHT stance relative to the JCI, with an

OUTPERFORM rating (Neutral previously) on Media Nusantara Citra (MNCN), and a NEUTRAL

on Surya Citra Media (SCMA). We believe Indonesia remains one of the most attractive markets

in Asia for free-to-air television, owing to three primary drivers: (1) the middle income class is

expanding and its income is rising, (2) its young population, and (3) a lack of infrastructure for

payTV making free-to-air TV the most effective method to reach the mass market. (Link)

Must-read recently published reports

1) Hong Kong Strategy – A long winter: The beginning of a structural downturn (30/11)

Vincent Chan

Our economist believes that a slowing Chinese economy and rising US interest rates will drag the Hong Kong economy into a structural downturn in the years to come.

2) Asia Pacific Equity Strategy – 2016 Outlook: A year of positive returns? (1/12)

Sakthi Siva With MSCI Asia ex-Japan up just 1% in 2014 and down 10% in 2015, we highlight three reasons why 2016 could be a year of positive returns.

3) China A-Share Strategy – China New Economy Activity Index (NEAI) (2/12)

Li Chen The performance of small caps on ChiNext and the Main Board is expected to face pressure in the next 1-2 months as the draft of IPO reform will occur before next March, raising supply concerns.

4) House of Debt — Still in the Woods (21/10)

Ashish Gupta

Three years since our first 'House of Debt' report, we find that despite attempts at deleveraging, financial stress at these groups has intensified. All the groups saw FY15 debt rise further. Many of their projects now have 20-70% cost overruns pushing capital costs above replacement costs.

5) China Utilities and Industrials — (14/10)

Dave Dai Following a recent trip involving meeting industry experts and a policy think-tank, our structural thesis of preferring green over grey energy is greatly strengthened. In the 13th FYP period (2016-20), the overall power oversupply could worsen with ongoing capex across all fuel types, creating utilisation pressure for base-load coal-fired power.

Research Analyst

Manish Nigam

852 2101 7067

manish.nigam@credit-suisse.com

Credit Suisse forthcoming events

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Date 06 January, Singapore

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Date 06-07 January, Hong Kong

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Analyst Dick Wei

7th Annual ASEAN Conference

Date 07-08 January, Singapore

CS Japan Tech Seminar (Japanese speaking clients only)

Date 13 January, Tokyo

Analyst Hideyuki Maekawa

Asia Frontier Markets Conference

Date 22-23 February, London 25-26 February, New York

Analyst Chate Benchavitvilai

Hong Kong (Non-deal roadshow)

Advanced Semicon. Engr. (2311.TW)

Date 14-15 December, Hong Kong

Analyst Randy Abrams

Chipbond (6147.TWO)

Date 07 January, Hong Kong

Analyst Jerry Su

US (Non-deal roadshow)

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Contact cseq.events@credit-suisse.com or your usual sales representative

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Weekly revision review

Company rating/earnings/target price changes

New EPS Old EPS

Last New Old forecasts forecasts % change

New Old closing target target % Curr Curr Curr Curr Curr Curr

Country Date RIC Company rating rating price price price change year yr + 1 year yr + 1 year yr + 1 Analyst

Upgrade

China 07 Dec 1313.HK CR Cement N U HK$ 2.43 HK$ 3 HK$ 3.5 -14.3 HK$ 0.2035 HK$ 0.1117 HK$ 0.321 HK$ 0.2132 -36.60 -47.61 Trina Chen

China 07 Dec 2899.HK Zijin (H) O N HK$ 1.658 HK$ 2.6 HK$ 1.9 36.8 Rmb 0.1105 Rmb 0.1173 Rmb 0.1174 Rmb 0.1462 -5.93 -19.79 Joy Zhang

Hong Kong 07 Dec 0486.HK Rusal O N HK$ 0.345 HK$ 4.1 HK$ 6.2 -33.9 US$ 0.0901 US$ 0.0668 US$ 0.1321 US$ 0.1276 -31.82 -47.67 Trina Chen

Indonesia 03 Dec SILO.JK Siloam Hospitals O N Rp 9675 Rp 13000 Rp 14250 -8.8 Rp 85 Rp 134 Rp 105 Rp 207 -18.51 -34.96 Anand Swaminathan

Indonesia 07 Dec MNCN.JK MNCN O N Rp 1775 Rp 2165 Rp 2800 -22.7 Rp 97 Rp 117 Rp 151 Rp 176 -35.84 -33.79 Jahanzeb Naseer

Pakistan 07 Dec MCB.KA MCB O N PRs 212.21 PRs 270 PRs 318 -15.1 PRs 24.0423 PRs 25.4378 PRs 24.8337 PRs 26.646 -3.19 -4.53 Farhan Rizvi

Philippines 07 Dec EMP.PS Emperador N U P 9 P 9.9 P 9 10.0 P 0.4041 P 0.4519 P 0.404 P 0.4409 0.03 2.50 Alvin Arogo

Upward revision

China 07 Dec 601992.SS BBMG Corp (A) N N Rmb 10.07 Rmb 9.2 Rmb 9.1 1.1 Rmb 0.4717 Rmb 0.6772 Rmb 0.5326 Rmb 0.8235 -11.43 -17.77 Trina Chen

China 07 Dec 2009.HK BBMG Corp (H) O O HK$ 4.244 HK$ 11.5 HK$ 11.4 0.9 Rmb 0.4717 Rmb 0.6772 Rmb 0.5326 Rmb 0.8235 -11.43 -17.77 Trina Chen

China 07 Dec 600188.SS Yanzhou Coal (A) U U Rmb 9.25 Rmb 2.5 Rmb 2.4 4.2 Rmb -0.186 Rmb -0.6519 Rmb -0.2376 Rmb -0.418 n.m. n.m. Trina Chen

China 07 Dec 601899.SS Zijin (A) U U Rmb 3.46 Rmb 2.05 Rmb 1.498 36.8 Rmb 0.1105 Rmb 0.1173 Rmb 0.1174 Rmb 0.1462 -5.93 -19.79 Joy Zhang

China 08 Dec 002475.SZ Luxshare O O Rmb 34.7 Rmb 47.2 Rmb 37.4 26.2 Rmb 0.8167 Rmb 1.1187 Rmb 0.8066 Rmb 1.1796 1.25 -5.16 Sam Li

Hong Kong 02 Dec 1929.HK CTF Jewellery N N HK$ 5.35 HK$ 6.4 HK$ 5.953 7.5 HK$ 0.3587 HK$ 0.45 HK$ 0.3587 HK$ 0.45 0.00 0.00 Eva Wang

Hong Kong 07 Dec 2314.HK Lee & Man Paper O O HK$ 4.38 HK$ 7.1 HK$ 6.6 7.6 HK$ 0.4908 HK$ 0.5907 HK$ 0.4713 HK$ 0.5462 4.14 8.14 Joy Zhang

India 03 Dec TORP.BO Torrent N N Rs 1459.1 Rs 1450 Rs 1260 15.1 Rs 86.231 Rs 67.1515 Rs 76.7226 Rs 62.7936 12.39 6.94 Anubhav Aggarwal

Indonesia 07 Dec SCMA.JK SCMA N N Rp 3035 Rp 3300 Rp 3000 10.0 Rp 103 Rp 118 Rp 131 Rp 160 -21.15 -26.11 Jahanzeb Naseer

Indonesia 09 Dec TLKM.JK Telkom O O Rp 3015 Rp 3350 Rp 3250 3.1 Rp 172 Rp 193 Rp 172 Rp 190 -0.37 1.28 Colin McCallum

Malaysia 08 Dec ASTR.KL Astro O O RM 2.86 RM 3.7 RM 3.6 2.8 RM 0.121 RM 0.1425 RM 0.1305 RM 0.1408 -7.31 1.25 Danny Chan

Singapore 07 Dec NEPS.SI NOL N N S$ 0.869 S$ 1.3 S$ 1.1 18.2 US$ -0.0539 US$ 0.0199 US$ -0.0539 US$ 0.0199 n.m. 0.00 Timothy Ross

South Korea 07 Dec 204320.KS Mando O O W 173000 W 193000 W 180000 7.2 W 14265 W 18779 W 14934 W 19417 -4.48 -3.29 Michael Sohn

Taiwan 04 Dec HIMX.OQ Himax O O US$ 7.5 US$ 8.8 US$ 8.4 4.8 US$ 0.131 US$ 0.2511 US$ 0.1274 US$ 0.2394 2.82 4.89 Jerry Su

Taiwan 07 Dec 8086.TWO AWSC N N NT$ 91.9 NT$ 92 NT$ 88 4.5 NT$ 7.8315 NT$ 8.5187 NT$ 7.8315 NT$ 8.3655 0.00 1.83 Derrick Yang

Taiwan 07 Dec 2455.TW VPEC O O NT$ 44.6 NT$ 49 NT$ 47 4.3 NT$ 2.4124 NT$ 2.6491 NT$ 2.3945 NT$ 2.5683 0.74 3.15 Derrick Yang

Taiwan 07 Dec 3105.TWO Win Semi O O NT$ 50.8 NT$ 62 NT$ 62 0.0 NT$ 4.5447 NT$ 5.0349 NT$ 4.5306 NT$ 5.0348 0.31 0.00 Derrick Yang

Downgrade

Hong Kong 07 Dec 1314.HK Tsui Wah N O HK$ 1.76 HK$ 2 HK$ 3.2 -37.5 HK$ 0.1049 HK$ 0.12 HK$ 0.1384 HK$ 0.1741 -24.24 -31.06 Sophie Chiu

Singapore 07 Dec SGXL.SI SGX N O S$ 7.54 S$ 8 S$ 10 -20.0 S$ 0.3138 S$ 0.3607 S$ 0.346 S$ 0.3978 -9.28 -9.32 Arjan van Veen

Thailand 09 Dec PTT.BK PTT N O Bt 241 Bt 257 Bt 321 -19.9 Bt 10.2799 Bt 29.8913 Bt 10.2799 Bt 29.8913 0.00 0.00 Poom Suvarnatemee

Downward revision

China 03 Dec 002008.SZ Han's Laser O O Rmb 25.78 Rmb 32 Rmb 33 -3.0 Rmb 0.6863 Rmb 0.8659 Rmb 0.6161 Rmb 0.8842 11.39 -2.07 Baiding Rong

China 07 Dec 000898.SZ Angang Steel (A) N N Rmb 4.56 Rmb 3.5 Rmb 5.3 -34.0 Rmb -0.3674 Rmb -0.3099 Rmb 0.0125 Rmb 0.2843 n.m. n.m. Trina Chen

China 07 Dec 0347.HK Angang Steel (H) O O HK$ 2.553 HK$ 4.3 HK$ 6.7 -35.8 Rmb -0.3674 Rmb -0.3099 Rmb 0.0125 Rmb 0.2843 n.m. n.m. Trina Chen

China 07 Dec 600585.SS Anhui Conch (A) O O Rmb 16.57 Rmb 22.1 Rmb 23.7 -6.8 Rmb 1.4787 Rmb 1.2149 Rmb 1.4441 Rmb 1.3028 2.40 -6.74 Trina Chen

China 07 Dec 0914.HK Anhui Conch (H) O O HK$ 17.781 HK$ 28 HK$ 30 -6.7 Rmb 1.4787 Rmb 1.2149 Rmb 1.4441 Rmb 1.3028 2.40 -6.74 Trina Chen

China 07 Dec 600019.SS Baosteel O O Rmb 5.4 Rmb 6.5 Rmb 6.6 -1.5 Rmb 0.1341 Rmb 0.0733 Rmb 0.108 Rmb 0.3532 24.14 -79.26 Trina Chen

China 07 Dec 601600.SS Chalco (A) U U Rmb 4.9 Rmb 1.964 Rmb 1.977 -0.7 Rmb -0.1108 Rmb -0.1624 Rmb -0.0595 Rmb -0.119 n.m. n.m. Trina Chen

China 07 Dec 2600.HK Chalco (H) N N HK$ 1.931 HK$ 2.4 HK$ 2.5 -4.0 Rmb -0.1108 Rmb -0.1624 Rmb -0.0595 Rmb -0.119 n.m. n.m. Trina Chen

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Company rating/earnings/target price changes (continued)

New EPS Old EPS

Last New Old forecasts forecasts % change

New Old closing target target % Curr Curr Curr Curr Curr Curr

Country Date RIC Company rating rating price price price change year yr + 1 year yr + 1 year yr + 1 Analyst

Downward revision

China 07 Dec 601088.SS China Shenhua (A) U U Rmb 14.64 Rmb 9.7 Rmb 11.6 -16.4 Rmb 1.1299 Rmb 0.7624 Rmb 1.1286 Rmb 1.0085 0.11 -24.41 Trina Chen

China 07 Dec 1088.HK China Shenhua (H) N N HK$ 9.997 HK$ 11.8 HK$ 14.5 -18.6 Rmb 1.1299 Rmb 0.7624 Rmb 1.1286 Rmb 1.0085 0.11 -24.41 Trina Chen

China 07 Dec 601898.SS CN Coal Energy (A) U U Rmb 5.96 Rmb 2.1 Rmb 2.2 -4.5 Rmb -0.3222 Rmb -0.54 Rmb -0.3546 Rmb -0.4304 n.m. n.m. Trina Chen

China 07 Dec 1898.HK CN Coal Energy (H) U U HK$ 2.512 HK$ 2.5 HK$ 2.7 -7.4 Rmb -0.3222 Rmb -0.54 Rmb -0.3546 Rmb -0.4304 n.m. n.m. Trina Chen

China 07 Dec 3323.HK CNBM U U HK$ 3.258 HK$ 3.7 HK$ 4.8 -22.9 Rmb 0.2796 Rmb 0.1016 Rmb 0.2135 Rmb 0.1687 30.97 -39.77 Trina Chen

China 07 Dec 1893.HK CNM N N HK$ 1.277 HK$ 1.8 HK$ 2 -10.0 Rmb 0.0808 Rmb 0.0519 Rmb 0.1625 Rmb 0.1682 -50.25 -69.14 Trina Chen

China 07 Dec 600362.SS Jiangxi Copper (A) U U Rmb 14.5 Rmb 8.675 Rmb 9.067 -4.3 Rmb 0.4708 Rmb 0.3376 Rmb 0.556 Rmb 0.619 -15.31 -45.46 Trina Chen

China 07 Dec 0358.HK Jiangxi Copper (H) O O HK$ 7.353 HK$ 10.6 HK$ 11.5 -7.8 Rmb 0.4708 Rmb 0.3376 Rmb 0.556 Rmb 0.619 -15.31 -45.46 Trina Chen

China 07 Dec 600808.SS Maanshan (A) U U Rmb 3.17 Rmb 1.34 Rmb 1.497 -10.5 Rmb -0.4206 Rmb -0.2274 Rmb -0.3403 Rmb 0.1086 n.m. n.m. Trina Chen

China 07 Dec 0323.HK Maanshan (H) N N HK$ 1.335 HK$ 1.7 HK$ 1.9 -10.5 Rmb -0.4206 Rmb -0.2274 Rmb -0.3403 Rmb 0.1086 n.m. n.m. Trina Chen

China 07 Dec 1136.HK TCC International U U HK$ 1.47 HK$ 1.2 HK$ 1.7 -29.4 HK$ -0.025 HK$ -0.0233 HK$ -0.0178 HK$ 0.0326 n.m. n.m. Trina Chen

China 07 Dec 2233.HK WCC O O HK$ 1.335 HK$ 2 HK$ 2.2 -9.1 Rmb 0.0197 Rmb 0.1272 Rmb 0.035 Rmb 0.1338 -43.63 -4.94 Trina Chen

China 07 Dec 3948.HK Yitai Coal U U HK$ 3.946 HK$ 4.2 HK$ 7 -40.0 Rmb 0.1158 Rmb -0.08 Rmb 0.347 Rmb 0.4597 -66.63 n.m. Trina Chen

China 07 Dec 1818.HK Zhaojin U U HK$ 3.465 HK$ 3 HK$ 3.8 -21.1 Rmb 0.1501 Rmb 0.1221 Rmb 0.1532 Rmb 0.1767 -1.99 -30.90 Joy Zhang

China 08 Dec 002241.SZ GeorTek O O Rmb 31.9 Rmb 40.8 Rmb 41.8 -2.4 Rmb 0.8942 Rmb 1.1723 Rmb 0.9037 Rmb 1.1885 -1.05 -1.37 Sam Li

Hong Kong 02 Dec 1913.HK Prada U U HK$ 3.127 HK$ 23.5 HK$ 27.5 -14.5 € 0.1595 € 0.1597 € 0.1645 € 0.1667 -3.03 -4.20 Isis Wong

Hong Kong 07 Dec 1208.HK MMG O O HK$ 0.192 HK$ 2.9 HK$ 3.2 -9.4 US$ -0.0201 US$ 0.0575 US$ 0.0062 US$ 0.1099 n.m. -47.66 Joy Zhang

Hong Kong 07 Dec 2689.HK Nine Dragons Paper O O HK$ 4.078 HK$ 6.3 HK$ 6.9 -8.7 Rmb 0.4307 Rmb 0.5485 Rmb 0.5173 Rmb 0.5645 -16.75 -2.83 Joy Zhang

Hong Kong 08 Dec 0388.HK Hong Kong Exchange U U HK$ 203.6 HK$ 170 HK$ 170 0.0 HK$ 6.6821 HK$ 6.2373 HK$ 6.7282 HK$ 6.3206 -0.69 -1.32 Arjan van Veen

India 08 Dec APSE.BO Adani Ports O O Rs 251.25 Rs 315 Rs 355 -11.3 Rs 13.0401 Rs 15.7565 Rs 13.607 Rs 17.0604 -4.17 -7.64 Lokesh Garg

India 08 Dec CCRI.BO Concor O O Rs 1419.4 Rs 1550 Rs 1550 0.0 Rs 52.6167 Rs 60.7168 Rs 53.1458 Rs 61.1574 -1.00 -0.72 Lokesh Garg

India 08 Dec GPPL.BO Gujarat Pipavav O O Rs 154.95 Rs 205 Rs 205 0.0 Rs 7.3042 Rs 9.536 Rs 7.3783 Rs 9.7249 -1.00 -1.94 Lokesh Garg

Indonesia 03 Dec INTP.JK Indocement N N Rp 19800 Rp 21600 Rp 22000 -1.8 Rp 1260 Rp 1354 Rp 1309 Rp 1339 -3.77 1.15 Ella Nusantoro

Indonesia 03 Dec SMGR.JK Semen Indonesia O O Rp 10975 Rp 16000 Rp 16200 -1.2 Rp 789 Rp 890 Rp 824 Rp 936 -4.23 -4.89 Ella Nusantoro

Philippines 07 Dec SSI.PS SSI Group O O P 3.85 P 6.5 P 12.452 -47.8 P 0.3035 P 0.4313 P 0.4055 P 0.5601 -25.15 -23.00 Alvin Arogo

Singapore 02 Dec SCMN.SI Sembcorp Marine N N S$ 1.82 S$ 2.2 S$ 2.4 -8.3 S$ 0.1079 S$ 0.1912 S$ 0.1646 S$ 0.1912 -34.43 0.00 Gerald Wong

Thailand 04 Dec CPALL.BK C.P. ALL O O Bt 41 Bt 52 Bt 60 -13.3 Bt 1.5285 Bt 1.9078 Bt 1.5285 Bt 1.9078 0.00 0.00 Warayut Luangmettakul

Initiation

China 04 Dec 0363.HK SIHL O - HK$ 20.3 HK$ 26.9 - n.a. HK$ 2.5122 HK$ 2.5317 - - n.a. n.a. Baoying Zhai

Indonesia 03 Dec MIKA.JK Mitra Keluarga N - Rp 2305 Rp 2500 - n.a. Rp 41 Rp 47 - - n.a. n.a. Anand Swaminathan

Philippines 07 Dec DNL.PS D&L Industries N - P 8.8 P 10.2 - n.a. P 0.3148 P 0.364 - - n.a. n.a. Kathi Go

Philippines 07 Dec JFC.PS Jollibee O - P 208.2 P 261.9 - n.a. P 5.1406 P 6.3876 - - n.a. n.a. Alvin Arogo

Philippines 07 Dec RRHI.PS Robinsons Retail N - P 68.05 P 74.4 - n.a. P 3.0352 P 3.5447 - - n.a. n.a. Sofia Cabral

Philippines 07 Dec URC.PS Universal Robina O - P 186.4 P 246.6 - n.a. P 6.6637 P 7.7415 - - n.a. n.a. Alvin Arogo

Others

China 07 Dec 0691.HK Shanshui U U HK$ 5.214 HK$ 1.8 HK$ 1.8 0.0 Rmb -0.536 Rmb -0.546 Rmb -0.5415 Rmb -0.5328 n.m. n.m. Trina Chen

China 07 Dec 1171.HK Yanzhou Coal (H) U U HK$ 2.893 HK$ 3 HK$ 3 0.0 Rmb -0.186 Rmb -0.6519 Rmb -0.2376 Rmb -0.418 n.m. n.m. Trina Chen

South Korea 08 Dec 005490.KS POSCO O O W 166000 W 240000 W 240000 0.0 W -1385 W 17173 W -2823 W 18968 n.m. -9.46 Minseok Sinn

Note: Prices are as of 9 December 2015, US$; Entries are organised by changes in rating first, followed by that in target price and earnings. Source: Credit Suisse estimates

10 December 2015

Jump-Start 4

Regional valuation snapshot Forecast valuations (IBES estimates) Index performance

EPS 3-mth chg. in growth (%) EPS est. (%) P/E (x)

9 Dec 15 2014 2015 2016 2015 2016 2014 2015 2016

Australia 6.0 -3.9 -7.8 -3.4 -5.5 13.4 14.0 15.2 China 6.0 1.9 9.2 -1.1 -4.1 11.5 11.3 10.4 Hong Kong 7.2 -10.8 8.6 -2.2 -2.6 13.7 15.1 13.9 India 4.2 8.2 19.4 -4.2 -4.7 20.2 18.6 15.6 Indonesia 8.2 -6.1 10.2 -4.0 -6.2 14.3 15.6 14.1 Japan 75.1 5.6 18.1 -1.6 -2.2 18.4 17.7 14.9 Korea -10.1 21.8 1.4 1.2 -2.6 12.3 10.1 9.9 Malaysia -5.2 -3.7 7.7 -3.2 -3.7 15.8 16.4 15.2 Philippines 7.7 7.1 11.6 -1.6 -2.3 20.4 19.1 17.1 Singapore 8.9 -2.8 5.0 -2.6 -4.4 11.9 12.3 11.7 Taiwan 26.3 3.7 2.3 -1.4 -3.5 12.3 12.0 11.8 Thailand -6.8 5.3 12.1 -5.0 -5.3 13.9 13.2 11.8 Cons. Discretionary -6.4 -4.8 13.1 -4.1 -3.0 12.8 13.5 11.9 Consumer Staples 1.1 10.3 4.9 -2.2 -5.3 22.4 20.5 19.5 Energy -11.1 -24.8 6.5 -5.7 -15.8 9.2 12.2 11.4 Financials 10.5 4.0 4.8 -0.9 -2.4 10.6 10.3 9.8 Health Care 10.5 14.3 19.6 -0.9 -0.1 31.3 27.9 23.4 Industrials -0.1 15.0 6.4 7.1 -4.1 16.6 14.4 13.6 Information Tech 9.5 -1.5 9.1 -1.3 -3.5 14.8 15.1 13.8 Materials 3.3 -20.2 -6.3 -12.8 -11.6 10.4 13.0 13.8 Telecom Services -1.4 7.2 5.4 0.3 -1.1 16.3 15.2 14.4 Utilities 17.0 43.8 -13.6 5.9 1.2 14.8 10.3 11.9 Asia Pacific 5.4 7.2 6.0 -1.3 -3.2 14.6 13.6 12.8 Asia F X Japan 4.4 4.4 7.0 -1.2 -3.6 12.8 12.3 11.5 Asia Pac F X Japan 5.4 1.4 5.2 -1.1 -3.8 12.9 12.7 12.1

9 Dec 2015 1W 1M 3M YTD 12M

MSCI Australia -4.8 1.7 -0.7 -18.1 -18.0 MSCI China -3.3 -5.6 -0.5 -10.0 -7.5 MSCI Hong Kong -2.0 -3.1 -0.8 -3.7 -4.5 MSCI India -4.4 -5.3 -4.9 -13.3 -15.5 MSCI Indonesia -2.5 -1.0 8.7 -23.5 -22.6 MSCI Japan -1.8 -1.7 1.6 6.9 3.5 MSCI Korea -4.2 -5.9 4.8 -8.8 -11.5 MSCI Malaysia -1.9 0.7 5.5 -23.4 -22.9 MSCI Philippines -3.0 -3.3 -2.0 -9.8 -9.2 MSCI Singapore -0.2 -3.1 -1.4 -20.6 -19.9 MSCI Taiwan -3.1 -5.8 -2.8 -14.9 -14.7 MSCI Thailand -4.4 -8.9 -9.3 -23.9 -27.0 Cons. Discretionary -2.8 -5.7 2.5 -15.9 -18.5 Consumer Staples -3.8 -2.5 0.7 -10.5 -12.1 Energy -8.2 -9.0 -7.7 -28.7 -28.0 Financials -3.4 -2.0 0.4 -14.4 -13.7 Health Care -3.4 -0.1 4.4 -0.1 -0.7 Industrials -3.3 -3.9 -2.4 -8.4 -7.5 Information Tech -2.7 -4.0 4.4 -8.6 -9.2 Materials -5.7 -8.1 -9.9 -25.1 -25.3 Telecom Services -2.0 -1.7 -3.6 -11.3 -11.3 Utilities -2.8 -4.3 -1.6 -12.1 -12.2 MSCI AC Asia Pacific -2.8 -2.7 0.5 -5.6 -6.9 MSCI AC Asia ex JP -3.2 -4.9 -0.2 -12.2 -12.3 MSCI AC Asia Pacific ex JP -3.5 -3.5 -0.3 -13.6 -13.7

Note: Numbers for Australia and Japan correspond to June 2014—16

and March 2014—16, respectively.

Source: IBES, Credit Suisse research

Note: All sectoral data refer to Asia Pacific ex. Japan.

Source for all figures: MSCI, FactSet, Thomson Financial Datastream,

Credit Suisse research

Historical valuations Country—DDM-based valuations

9 Dec 2015 12M forward P/E (x)

Trailing P/B (x)

Trailing dividend yield (%)

Current 5-yr avg. Current

5-yr avg. Current

5-yr avg.

Australia 14.7 13.4 1.7 1.9 5.3 4.6 China 10.4 9.3 1.3 1.6 3.2 3.0 Hong Kong 14.0 14.6 1.2 1.4 3.0 2.7 India 16.2 14.7 3.0 2.8 1.5 1.3 Indonesia 14.1 13.6 2.8 3.6 2.7 2.4 Japan 14.1 13.4 1.4 1.2 1.9 2.0 Korea 9.9 9.1 0.9 1.2 1.5 1.2 Malaysia 15.1 14.7 1.7 2.1 3.2 3.0 Philippines 17.1 17.2 2.7 3.0 1.8 2.0 Singapore 11.7 13.2 1.1 1.5 4.3 3.4 Taiwan 11.8 13.4 1.6 1.8 4.3 3.5 Thailand 11.8 11.8 1.8 2.2 3.4 3.0 Cons. Discretionary 12.0 10.8 1.5 2.0 2.4 1.9 Consumer Staples 19.4 18.0 2.6 2.8 2.7 2.8 Energy 11.3 10.8 0.9 1.5 5.0 3.4 Financials 9.8 10.6 1.2 1.4 4.1 3.8 Health Care 23.2 20.4 5.3 4.5 1.2 1.6 Industrials 13.5 13.3 1.4 1.4 2.7 2.4 Information Tech 13.9 11.9 1.8 2.1 2.4 2.0 Materials 13.3 11.9 1.1 1.7 4.5 2.9 Telecom Services 14.4 13.9 2.1 2.2 3.8 4.1 Utilities 11.8 13.4 1.4 1.5 3.3 2.8 Asia Pacific 12.9 12.3 1.4 1.4 2.7 2.6 Asia ex Japan 11.5 11.3 1.3 1.6 2.9 2.5 Asia Pac F X Japan 12.1 11.7 1.4 1.7 3.4 3.0

Implied discount Equity risk

rate (IDR) (%) premium (ERP) (%)

4 Dec 15 Current 5Y avg. Std Dev. Current 5Y avg. Std Dev.

Australia 11.2 11.7 0.7 8.2 7.7 0.4

China 9.1 9.0 0.4 6.0 5.3 0.8

Hong Kong 8.2 8.1 0.3 6.6 6.5 0.7

India 11.7 12.4 0.5 3.9 4.1 0.6

Indonesia 12.3 13.3 0.7 3.7 6.0 1.5

Korea 11.1 11.9 0.6 8.8 8.7 1.2

Malaysia 10.6 10.8 0.2 6.4 7.0 0.4

Philippines 9.7 9.8 0.5 4.7 5.0 0.7

Singapore 10.6 10.5 0.3 8.1 8.4 0.6

Taiwan 11.8 11.0 0.4 10.2 9.5 0.4

Thailand 12.3 12.6 0.5 9.6 9.2 0.5

Asia ex Japan 11.3 11.4 0.4 9.1 8.7 1.0

Sector—DDM-based valuations Market implied growth rate (MIGR) (%)

4 Dec 15 Current 5-year average Std Dev.

Cons. Discretionary 0.1 -0.1 2.6

Consumer Staples 3.8 -0.1 2.6

Energy 0.0 -4.2 2.9

Financials -0.8 -0.2 2.4

Health Care 5.3 3.6 2.8

Industrials 3.2 2.3 2.5

Information Tech 7.5 6.7 2.2

Materials 2.6 1.0 3.0

Telecom Services 4.4 3.8 2.2

Utilities -2.7 -1.0 2.4

Source: Credit Suisse research Source: Credit Suisse research

10 December 2015

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GEM valuation snapshot Historical valuations Forecast valuations (IBES estimates) (continued)

9 Dec 2015 12M P/E (x) Trailing P/B (x) Trailing DY (%)

Current 5-yr

avg. Current 5-yr avg. Current

5-yr avg.

Brazil 10.5 10.1 1.2 1.4 4.1 4.1 Chile 12.4 15.1 1.5 2.1 3.2 2.4 China 10.4 9.3 1.3 1.6 3.2 3.0 Colombia 10.4 15.0 1.0 1.7 4.2 3.1 Czech Republic 12.3 11.5 1.3 1.6 7.6 6.9 Egypt 8.2 8.8 1.7 1.7 2.4 3.0 Greece 6.2 12.6 0.4 1.1 3.2 3.8 Hungary 11.1 9.2 1.2 1.0 2.1 2.8 India 16.2 14.7 3.0 2.8 1.5 1.3 Indonesia 14.1 13.6 2.8 3.6 2.7 2.4

Korea 9.9 9.1 0.9 1.2 1.5 1.2 Malaysia 15.1 14.7 1.7 2.1 3.2 3.0 Mexico 17.1 16.8 2.6 2.9 1.5 1.4 Peru 19.8 12.0 1.5 2.8 1.8 2.4 Philippines 17.1 17.2 2.7 3.0 1.8 2.0 Poland 10.6 11.7 1.0 1.3 3.9 4.5 Qatar 11.0 n/a 1.6 1.9 5.1 3.9 Russia 8.6 5.0 0.6 0.8 5.0 3.6 South Africa 14.3 13.0 2.4 2.5 3.1 3.0 Taiwan 11.8 13.4 1.6 1.8 4.3 3.5 Thailand 11.8 11.8 1.8 2.2 3.4 3.0 Turkey 8.3 9.7 1.3 1.6 3.4 2.5 UAE 10.4 n/a 1.2 1.3 4.6 2.8 Consumer Discretionary 13.1 11.3 1.8 2.2 1.7 1.5 Consumer Staples 20.6 20.0 3.5 3.7 1.9 1.9 Energy 7.1 7.1 0.7 1.0 4.2 3.6 Financials 8.0 9.1 1.1 1.4 3.8 3.1 Health Care 22.2 20.0 4.2 3.8 0.9 1.0 Industrials 13.1 13.0 1.4 1.5 1.9 1.9 Information Technology 14.0 11.8 1.8 2.1 2.4 2.0 Materials 12.4 11.1 1.0 1.4 3.4 3.3 Telecomms Services 13.0 12.8 2.0 2.3 4.2 3.9 Utilities 9.3 11.1 1.1 1.1 3.6 3.4 EMF 11.0 10.5 1.4 1.6 3.0 2.7 EM Asia 11.2 10.8 1.4 1.7 2.8 2.4 EM Europe 6.4 6.6 0.8 1.0 4.4 3.5 EM Latin America 12.4 11.8 1.5 1.7 2.9 3.2

Forecast valuations (IBES estimates) 9 Dec 2015 EPS growth 3M chg. in P/E

(%) est. (%) (x)

2014 2015 2016 2015 2016 2014 2015 2016

Brazil -6.8 -30.1 27.2 -5.7 -8.9 9.3 13.3 10.5

Chile 3.5 10.9 24.3 -3.2 -0.8 17.1 15.4 12.4

China 6.0 1.9 9.2 -1.1 -4.1 11.5 11.3 10.4

Colombia -22.4 -4.2 15.3 25.2 24.6 11.3 12.0 10.4

Czech Republic -24.8 11.7 -8.9 1.2 -0.8 12.5 11.2 12.3

Egypt -17.8 61.9 54.8 -16.9 -1.7 20.4 12.6 8.2

Greece -111.0 nm 108.6 -22.9 2.2 -20.0 13.0 6.2

Hungary -45.7 37.0 36.8 -5.1 2.2 20.8 15.1 11.1

India 4.2 8.2 19.4 -4.2 -4.7 20.2 18.6 15.6

Indonesia 8.2 -6.1 10.2 -4.0 -6.2 14.3 15.6 14.1

Korea -10.1 21.8 1.4 1.2 -2.6 12.3 10.1 9.9

Malaysia -5.2 -3.7 7.7 -3.2 -3.7 15.8 16.4 15.2

Mexico -12.3 9.0 22.2 -6.9 -6.2 22.8 21.0 17.1

Peru 54.6 -11.2 11.9 -5.3 -9.7 19.7 22.2 19.8

Philippines 7.7 7.1 11.6 -1.6 -2.3 20.4 19.1 17.1

Poland -12.8 26.0 -9.0 0.9 -6.1 12.2 9.7 10.6

Qatar 0.9 -1.7 8.1 -3.7 -6.2 11.9 11.9 11.0

Russia -3.1 -40.2 2.8 -4.5 -11.0 5.3 8.9 8.6

South Africa 7.4 4.6 10.7 -1.6 -2.5 16.8 16.2 14.6

Taiwan 26.3 3.7 2.3 -1.4 -3.5 12.3 12.0 11.8

Thailand -6.8 5.3 12.1 -5.0 -5.3 13.9 13.2 11.8 Turkey -1.4 7.8 16.5 -0.9 -0.5 10.4 9.7 8.3 UAE 14.7 -3.7 15.9 -7.4 -6.6 11.6 12.1 10.4

9 Dec 2015 EPS growth 3M chg. in P/E

(%) est. (%) (x)

2014 2015 2016 2015 2016 2014 2015 2016

Consumer Discretionary -5.3 4.3 15.7 -2.6 -2.0 15.7 15.1 13.0

Consumer Staples 2.4 17.0 13.8 -0.9 -1.8 27.3 23.5 20.6

Energy -3.6 -35.4 -1.4 -5.8 -12.1 4.5 7.0 7.1

Financials 5.7 6.6 6.5 -0.4 -3.0 9.1 8.5 8.0

Health Care 8.2 20.3 27.7 -0.9 -0.2 32.8 28.0 21.9

Industrials -6.7 47.1 9.2 7.0 -4.1 21.1 14.3 13.1

Information Technology 9.5 -1.4 9.2 -1.2 -3.4 14.9 15.1 13.8

Materials -30.1 -26.8 61.9 -21.3 -13.4 14.7 20.1 12.4

Telecomms Services -8.1 3.7 10.5 -3.3 -2.4 14.9 14.4 13.0

Utilities 20.3 41.6 -15.0 5.9 -0.4 11.2 7.9 9.3

EM 0.2 -1.1 8.7 -1.8 -4.5 11.8 11.9 11.0

EM Asia 3.8 6.7 6.9 -1.0 -3.7 12.7 12.0 11.2

EM Europe -11.2 -26.7 5.5 -3.4 -7.9 4.9 6.8 6.4

EM Latin America -6.1 -17.0 23.2 -4.8 -6.5 12.7 15.3 12.4

Pakistan 23.3 -4.8 6.4 -1.2 -5.3 8.2 8.6 8.1

Index US$ performance 9 Dec 2015 1W 1M 3M YTD 12M

Brazil 5.9 1.6 -0.1 -35.7 -37.7

Chile -1.4 -8.0 -6.9 -21.1 -21.3

China -3.3 -5.6 -0.5 -10.0 -7.5

Colombia -7.7 -25.4 -20.6 -50.2 -50.1

Czech Republic -0.3 -5.2 -15.4 -22.2 -27.5

Egypt -1.3 -5.2 -9.2 -29.5 -32.6

Greece -8.4 -26.4 -31.1 -64.9 -69.2

Hungary 0.0 5.8 9.8 31.5 16.6

India -4.4 -5.3 -4.9 -13.3 -15.5

Indonesia -2.5 -1.0 8.7 -23.5 -22.6

Korea -4.2 -5.9 4.8 -8.8 -11.5

Malaysia -1.9 0.7 5.5 -23.4 -22.9

Mexico -4.9 -5.5 -3.0 -15.7 -16.0

Peru -0.6 -7.6 -6.6 -30.4 -34.2

Philippines -3.0 -3.3 -2.0 -9.8 -9.2

Poland -3.6 -11.7 -20.7 -30.7 -36.7

Qatar -4.8 -11.0 -15.5 -26.2 -26.3

Russia -6.1 -8.7 -3.1 3.6 -10.5

South Africa -4.9 -9.7 -7.8 -23.7 -21.4

Taiwan -3.1 -5.8 -2.8 -14.9 -14.7

Thailand -4.4 -8.9 -9.3 -23.9 -27.0

Turkey -2.8 -9.0 8.3 -30.2 -30.8

UAE -4.9 -10.5 -17.2 -25.4 -27.7

Consumer Discretionary -3.2 -6.0 2.9 -11.9 -13.4

Consumer Staples -3.2 -4.3 -0.3 -10.0 -10.4

Energy -5.0 -8.9 -6.8 -19.3 -23.2

Financials -3.1 -6.3 -2.2 -20.9 -20.9

Health Care -3.2 -4.1 -0.2 -8.0 -7.7

Industrials -3.9 -5.7 -3.4 -17.1 -16.7

Information Technology -2.6 -4.0 4.3 -8.8 -9.5

Materials -4.2 -7.8 -9.6 -25.7 -27.3

Telecommunication Services -3.0 -4.9 -7.5 -21.2 -21.9

Utilities -2.2 -6.1 -4.8 -24.1 -25.1

EMF -3.2 -5.7 -1.8 -16.8 -17.6

EM Asia -3.5 -5.2 0.0 -12.8 -12.9

EM Europe -4.7 -9.3 -5.8 -16.4 -24.2

EM Latin America 0.5 -3.3 -2.8 -29.0 -30.4

Pakistan 2.3 -5.8 -8.2 -17.1 -16.8

Note: Sectors are EMF sectors.

Source for all figures: MSCI, IBES Aggregates

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Operational and valuation data showing top ten VALUATION

Top 10 P/E (x) Top 10 P/B (x) Top 10 dividend yield (%)

FY1 FY1 FY1

1 DOID.JK Delta Dunia Makmur 1.3 1 MEDC.JK Medco Energy 0.22 1 JAS.BK Jasmine 38.7

2 JAS.BK Jasmine 2.3 2 DOID.JK Delta Dunia Makmur 0.29 2 ITMG.JK ITM 17.7

3 015760.KS KEPCO 2.7 3 BOI.BO BOI 0.31 3 2325.TW SPIL 13.5

4 KRIS.SI Kris 3.0 4 0119.HK Poly Property 0.31 4 1929.HK CTF Jewellery 12.8

5 3903.HK HH 3.1 5 0041.HK Great Eagle 0.31 5 FAUF.KA Fauji Fertiliser 12.6

6 3900.HK Greentown 3.6 6 086790.KS HFG 0.32 6 BJBR.JK Bank Jabar Banten 10.4

7 0081.HK COGO 3.7 7 005490.KS POSCO 0.32 7 HPWR.KA HUBC 10.0

8 0486.HK Rusal 3.8 8 1893.HK CNM 0.32 8 2548.TW Huaku 9.8

9 1963.HK BOCQ 3.9 9 0845.HK Glorious 0.33 9 PKOL.KA POL 9.7

10 3383.HK Agile Property 4.2 10 0020.HK Wheelock 0.33 10 NBPK.KA NBP 9.6

Top 10 sales growth (%) Top 10 gross margin (%) Top 10 EPS growth (%)

FY1 FY1 FY1

1 600637.SS Oriental Pearl 556 1 2600.HK Chalco (H) 897 1 011170.KS Lotte Chemical 703

2 HALC.SI Halcyon Agri 182 2 TOP.BK TOP 782 2 WORK.BK Workpoint Ent. 622

3 0317.HK COMEC (H) 167 3 0317.HK COMEC (H) 696 3 1211.HK BYD (H) 516

4 GDG.L GDG 165 4 010950.KS S-Oil 689 4 0338.HK Sinopec (H) 495

5 WUBA.N 58.com 165 5 6505.TW FPCC 548 5 BA.BK Bangkok Airways 448

6 601788.SS EB Securities 132 6 IRPC.BK IRPC 527 6 TOP.BK TOP 401

7 1776.HK GF Securities (H) 124 7 AIRX.KL AirAsia X 464 7 010950.KS S-Oil 372

8 600999.SS CM Securities 122 8 009540.KS Hyundai Heavy 379 8 6505.TW FPCC 371

9 9945.TW Ruentex Development 120 9 THAI.BK THAI 305 9 0486.HK Rusal 367

10 6881.HK China Galaxy 118 10 TAHL.SI Tiger Airways 289 10 JAS.BK Jasmine 347

FY1 FY1 FY1

1 JAS.BK Jasmine 89.4 1 JAS.BK Jasmine 68 1 WB.OQ Weibo 153

2 0486.HK Rusal 52.5 2 PSO.KA PSO 60 2 DL.N CDEL 146

3 CEB.PS Cebu Air 34.8 3 NOBG.SI Noble 56 3 ZPIN.N Zhaopin 144

4 2618.HK TCL Communication 29.5 4 3481.TW Innolux 55 4 8044.TWO PChome online 138

5 1450.HK CSS 28.4 5 2618.HK TCL Communication 47 5 DANG.N Dangdang 136

6 2333.HK Greatwall Motor (H) 24.6 6 6176.TW Radiant 47 6 JUST.BO Just Dial 126

7 DOID.JK Delta Dunia Makmur 24.2 7 0291.HK China Res Beer 44 7 600835.SS SMEIC 124

8 0688.HK China Overseas Land 23.9 8 3231.TW Wistron 43 8 COAL.BO Coal India 121

9 INTP.SI Interplex 23.9 9 NEPS.SI NOL 42 9 6176.TW Radiant 118

10 2328.HK PICC P&C 23.6 10 2369.HK China Wireless 38 10 000651.SZ Gree 113

RELATIVE PERFORMANCE

Top 10 performers Bottom 10 performers

1M% 1M%

1 3669.HK Yongda 47.4 1 138930.KS BNK Financial Group -30.9

2 000002.SZ China Vanke (A) 29.5 2 INCO.JK PT INCO -29.0

3 EXCL.JK XL Axiata 29.4 3 ITMG.JK ITM -23.6

4 600085.SS TRT 28.7 4 VARD.SI Vard Holdings -23.5

5 NTES.OQ Netease 28.6 5 1450.HK CSS -23.1

6 CENTEL.BK Centel 28.5 6 MEDC.JK Medco Energy -22.6

7 JNSP.BO JSPL 27.5 7 DTAC.BK DTAC -22.2

8 0963.HK Bloomage 26.9 8 NOBG.SI Noble -21.2

9 XRS.N TAL 26.3 9 2343.HK Pacific Basin -20.8

10 BCH.BK Bangkok Chain Hospital 26.1 10 046890.KQ SSC -20.2

Note: Ratios based on Credit Suisse FY1 estimates, Source: Credit Suisse estimates

10 December 2015

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Credit Suisse macroeconomic forecasts

10 December 2015

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Credit Suisse global economic forecasts

2013 2014 4Q to 4Q Annual average

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 12 13 14 15 12 13 14 15

Global Real GDP (YoY) 4.1 3.3 3.8 IP (YoY) 4.1 3.3 3.8 Inflation (YoY) 5.2 3.6 4.8

US Real GDP (QoQ ann) 2.7 2.2 2.3 Inflation (YoY) 1.4 2.1 1.5 Policy rate ... ... ... 10-yr bond yield ... ...

Japan Real GDP (QoQ ann) 2.5 2.2 1.3 Inflation (YoY) 0.0 0.0 -0.2 Policy rate ... ... ... 10-yr bond yield ... ... USDJPY ... ...

Euro-15 Real GDP (QoQ ann) 1.2 -0.5 0.5 Inflation (YoY) 2.0 2.5 2.0 Policy rate ... ... ... 10-yr bond yield ... ... ... EURUSD ... ... ...

UK Real GDP (QoQ ann) 1.9 -0.3 1.4 Inflation (YoY) 2.3 2.4 2.0 Policy rate ... ... ... 10-yr bond yield ... ... ... GBPUSD ... ... ...

Switzerland Real GDP (QoQ ann) 2.2 0.5 1.5 Inflation (YoY) 0.8 -0.3 1.0 Policy rate ... ... ... USDCHF ... ... ...

NJ Asia Real GDP (QoQ ann) 5.3 6.0 7.0 6.0 5.4 7.6 5.4 5.8 6.7 6.2 6.1 6.2 6.2 6.3 6.1 6.1

Inflation (YoY) 3.8 4.0 4.6 3.8 2.9 3.6 2.7 3.3 3.0 3.5 3.0 3.7 4.3 4.1 3.5 3.5 China Real GDP (YoY) 7.7 7.5 7.8 7.7 7.4 7.5 7.3 7.3 7.6 7.6 7.3 6.8 7.7 7.7 6.8 6.8 IP (YoY) 9.5 9.1 10.1 10.0 8.8 8.9 8.0 7.6 9.7 9.8 7.4 7.4 10.0 9.7 7.4 7.4 Inflation (YoY) 2.1 2.7 3.1 2.5 2.3 2.2 2.0 1.5 2.1 2.9 2.4 3.3 2.6 2.6 2.8 2.8 *India Real GDP (YoY) 4.4 5.2 5.9 6.2 6.1 5.8 6.0 4.0 4.7 4.6 6.0 7.1 4.5 4.7 6.8 6.8

EMEA Real GDP 3.4 3.3 3.6 Inflation (YoY) 5.2 5.5 5.9

Latin America Real GDP 4.2 3.1 3.9 Inflation (YoY) 6.3 6.2 6.4

Note: IMF PPP weights are used to compute regional and global aggregate figures. Ten-year bond yield figures are averages for the last month

of each quarter; *Annual figures are on fiscal year basis.

Source: Credit Suisse estimates

10 December 2015

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Credit Suisse Asian economic forecasts

Consensus

2012 2013 2014E 2015E 2012 2013 2014E 2015E 2016E

China Real GDP 7.7 7.7 7.3 6.8 7.7 7.7 7.4 6.8 6.6

Inflation 2.6 2.6 2.0 1.4 2.6 2.6 2.0 1.5 2.0

3-month interbank rate (year-end) 5.2 5.6 4.7 3.3 … … … … …

3m 12m

Currency, per USD 6.30 6.40 6.20 6.60 … … … … …

Hong Kong Real GDP 1.7 3.1 2.5 1.6 1.5 2.9 2.3 2.3 2.5

Inflation 4.1 4.3 4.4 3.3 4.1 4.3 4.4 3.1 3.0

3-month HIBOR (year-end) 0.4 0.4 0.4 0.6 … … … … …

3m 12m

Currency, per USD 7.80 7.80 7.76 7.75 … … … … …

India Real GDP 5.1 6.9 7.3 7.7 5.0 4.7 7.4 7.6 7.9

Inflation 10.2 9.5 6.0 4.9 … 9.7 6.3 5.2 5.4

Repo rate (year-end) 7.50 8.00 7.50 7.00 … … … … …

3m 12m . .

Currency, per USD 61.50 60.00 62.50 65.00 … … … … …

Indonesia Real GDP 6.0 5.6 5.0 4.6 6.2 5.8 5.0 4.8 5.2

Inflation 4.0 6.4 6.4 6.5 4.3 7.0 6.4 6.5 5.1

Overnight SBI yield (year-end) 5.75 7.50 7.75 7.50 … … … … …

3m 12m

Currency, per USD 14,200 14,800 12,440 14,200 … … … … …

Korea Real GDP 2.3 3.0 3.3 2.5 2.0 2.8 3.3 2.5 3.2

Inflation 2.2 1.3 1.3 0.8 2.2 1.3 1.3 0.8 1.8

Overnight call rate (year-end) 2.75 2.50 2.00 1.25 … … … … …

3m 12m

Currency, per USD 1,059 1,158 1,100 1,220 … … … … …

Malaysia Real GDP 5.5 4.7 6.0 4.8 5.6 4.7 6.0 4.8 4.7

Inflation 1.7 2.1 3.1 2.0 1.7 2.1 3.1 2.1 2.8

Overnight Policy rate (year-end) 3.00 3.00 3.25 3.25 … … … … …

3m 12m

Currency, per USD 3.83 3.83 3.50 4.50 … … … … …

Philippines Real GDP 6.7 7.1 6.1 6.1 6.8 7.2 6.1 5.8 6.0

Inflation 3.2 2.9 4.2 1.4 3.2 2.9 4.2 1.9 3.2

Overnight borrowing rate (year-end) 3.50 3.50 4.00 4.00 … … … … …

3m 12m

Currency, per USD 46.60 47.40 44.62 47.20 … … …

Singapore Real GDP 3.4 4.4 2.9 1.7 1.3 4.1 2.9 2.2 2.7

Inflation 4.6 2.4 1.0 -0.4 4.6 2.4 1.0 -0.2 1.1

3m SIBOR (year-end) 0.4 0.4 0.5 1.0 … … … … …

3m 12m

Currency, per USD 1.40 1.43 1.32 1.41 … … … … …

Taiwan Real GDP 1.5 2.1 3.7 2.2 1.3 2.1 3.7 2.1 3.0

Inflation 1.9 1.0 1.2 -0.5 1.9 0.8 1.2 -0.3 1.4

Overnight call rate (year-end) 0.4 0.4 0.4 0.4 … … … … …

3m 12m

Currency, per USD 30.10 31.70 31.45 33.90 … … … … …

Thailand Real GDP 7.3 2.8 0.9 2.0 6.5 2.9 0.7 2.7 3.4

Inflation 3.0 2.2 1.9 -0.8 3.0 2.2 1.9 -0.5 1.8

Overnight Repo rate (year-end) 2.8 1.3 2.0 1.3 … … … … …

3m 12m

Currency, per USD 35.80 37.00 32.90 36.50 … … … … …

* Through 2006, Thailand's policy rate was the 14-day repo rate

Source: CEIC, Asia Pacific Consensus Forecasts, Credit Suisse estimates

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Real interest rates Real policy rates

1

Annual forecast

Current 2014 2015(F) 2016(F)

China 2.85 3.90 2.65 2.50

Hong Kong -2.01 -4.67 -1.60 -0.90

India 1.75 2.40 1.55 0.70

Indonesia 2.61 1.27 2.80 1.34

Korea 0.50 0.99 0.18 -0.65

Malaysia 0.75 0.43 0.75 0.15

Philippines 2.90 0.44 3.20 0.65

Singapore 1.92 0.50 1.80 1.50

Taiwan 1.22 1.04 0.50 0.00

Thailand 2.47 0.89 2.24 -1.04

1 NJA Policy Rates: China=End Year Lending Rate, Hong kong-3 month interbank rate, India- Repo rate,

Indonesia-Overnight Rate, Korea- Base rate, Malaysia-overnight Rate, Philippines-Reverse repo rate,

Singapore-3 month interbank rate, Taiwan: Discount rate, Thailand- Overnight repo rate

2 NJA stands for Non-Japan Asia

Source: Central banks, CEIC, Statistical agencies, Credit Suisse

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Top stories from Credit Suisse research last week

10 December 2015

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India Market Strategy ------------------------------------------------------------------------------------------ New report: 2016—More 'prefer local, be wary of global' Neelkanth Mishra / Research Analyst / 91 22 6777 3716 / neelkanth.mishra@credit-suisse.com Prateek Singh / Research Analyst / 91 22 6777 3894 / prateek.singh@credit-suisse.com Ravi Shankar / Research Analyst / 91 22 6777 3869 / ravi.shankar@credit-suisse.com

● 2015 saw broader indices (BSE500) outperforming narrower ones (BSE100/Nifty) across sectors and time periods (Fig 1). We believe global linkages hurt large-caps: (i) greater selling pressure due to high foreign ownership which saw steady outflows and (ii) 53% of BSE100 revenues being not in INR. Full report.

● While global linkages hurt markets (Fig 2), domestic economy remains relatively more robust as evident in improvement in hard economic indicators. Downstream effects of higher government spending on roads/railways should show up next year too.

● Additionally, implementation of 7th Pay Commission (by Jun-16) would start a Rs4.5tn consumption stimulus to 34mn people (link, Fig 3). Housing (mainly tier-2/3), transportation and small-town real-estate (which in turn helps labour demand) should benefit.

● While India remains among the fastest nominal GDP and earnings growths economies, global weakness could be an overhang. Despite rich valuations, we stay OW consumption and UW financials. OUTPERFORM: TechM, HUL, ULTC, TaMo. Recommend trimming positions in SBI and Bharti.

Global linkages still pose risks

Figure 1: Next400 outperformed BSE100 across sectors

-40% -30% -20% -10% 0% 10% 20% 30%

TelecomStaplesMetalsEnergyITNBFCReal EstateHealthCementUtilitiesIndustrialsCons. Disc.AutosPSU BankChemicalsPvt Bank

YTD 3M

Source: the BLOOMBERG PROFESSIONAL™ service, RAVE, Credit Suisse estimates.

Broader indices (BSE500) outperformed narrower ones (BSE100/Nifty) across sectors and time periods (Fig 1). We believe global linkages hurt large-caps: (i) greater selling pressure due to high foreign ownership which saw steady outflows, (ii) 53% of BSE100 revenues are not in INR, whereas the Next400 have more domestic focus.

Figure 2: Globally linked sectors hurt BSE100 12mf EPS

505

16 43 1 0

01 3

4

14

507

490

500

510

520

530

540

12M

F E

PS

Fin

anci

als IT

Pha

rma

Sta

ples

Indu

stria

ls

Util

ities

Tel

co

Con

s. D

isc.

Ene

rgy

Mat

eria

ls

12M

F E

PS

1st J

an 1

5

now

Global Linked Cuts

Mostly TTMT

Source: the BLOOMBERG PROFESSIONAL™ service, RAVE, Credit Suisse estimates.

Domestically government spending the catalyst(s)

Hard indicators (oil/ auto demand) are improving, pointing to an economic pick-up. Next year, the downstream effects of government spending on roads/railways should show up.

By Jun-16, the implementation of the 7th Pay Commission would start an 18-month Rs4.5 tn consumption stimulus to 34mn people (link). Housing (mainly tier-2/3), and transportation should benefit; pick up in small-town real-estate (moves around pay commissions) should help labour demand.

Figure 3: 7th Pay Commission provides Rs4.5 tn stimulus

0

5

10

15

20

2009 2010 2011 2012 2013 2014 2015 2016 2017

Spend on wages & pensions by govt. and CPSUs

Rs tn Rs 4.5tn (2.8% of GDP) stimulus to 34mn people

Source: Budget Documents, 7th Pay Commission Report, Credit Suisse estimates.

Stay local, look out for global risks

Indian macro indicators continue to look good, and India remains among the fastest nominal GDP and earnings growths economies. Global weakness though could be an overhang, and divergence between markets and the domestic economy may persist. We expect a slower pace of EPS cuts. Market returns could track EPS growth: the risk is global volatility. Despite rich valuations we stay OW consumption (best play on broad-based pickup; pay commission), and UW Financials (asset quality) (Fig 4). OUTPERFORM: TechM, HUL, ULTC, TaMo. Recommend trimming positions in SBI and Bharti.

Figure 4: CS Model Portfolio, OW Consumption, UW Financials

-4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0

Financials

Materials

Industrials

Telecom

Energy

Utilities

Health Care

Information Technology

Consumer Discretionary

Consumer Staples

Difference in wts. (CS minus MSCI India)

Source: RAVE, MSCI Factset, Credit Suisse estimates.

Extract from the Asian Daily, 9 December 2015

10 December 2015

Jump-Start 13

Tata Motors Ltd. -------------------------------------------------------------- Maintain OUTPERFORM New report: Shifting up a gear EPS: ◄► TP: ◄► Jatin Chawla / Research Analyst / 91 22 6777 3719 / jatin.chawla@credit-suisse.com Akshay Saxena / Research Analyst / 91 22 6777 3825 / akshay.saxena@credit-suisse.com

● JLR is entering a phase where volume growth is set to accelerate to >20% in 2HFY16/FY17 from 0% in 1HFY16 on a combination of both a strong product cycle and a low base in China and Russia.

● JLR's ~33% decline in China volumes in 1H was a combination of both a market slowdown and JLR product cycle issues. With both of them starting to reverse – industry returning to double-digit growth again from Oct and local Discovery Sport and XE; volume growth in China will reach double digits soon.

● 2Q results marked the bottom for margins as negative operating leverage given low volumes, poor product and country mix and launch costs took a toll. We don't expect any improvement in product mix (will worsen a bit) or country mix but positive operating leverage, platform consolidation benefits and some forex benefits should take margins back to ~16% levels.

● Tata Motors is a momentum stock which does really well when volume growth is strong with a double-digit EBITDA growth. We reckon JLR is entering that sweet spot now. Lack of FCF with further scale-up of JLR capex plans is a risk. Full report.

Click here for detailed financials

Volume growth set to return to >20% levels

Excluding China and Russia, JLR's volumes have grown ~20% in 1HFY16. Not only are the US and European markets doing better than China, JLR is also gaining share and hence growing faster than the market in most regions. This growth has been achieved primarily on the back of a good response to its two recent launches – the Jaguar XE and Discovery Sport. With the launch of the local Discovery Sport and XE in China and overall market growth improving, China will soon reach double-digit growth again. Jaguar has grown at 15% in 1H despite the phasing out of XF. With new XF and XE launch in China, US, Jaguar growth should accelerate to ~75% levels going forward.

Figure 1: Ex-China and Russia, JLR volumes grew at 20% in 1HFY16

-10%

0%

10%

20%

30%

40%

Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15

JLR overall growth Growth ex China and Russia

Source: Company data.

Figure 2: With China recovery and low base, volume growth to return to >20% in both 2HFY16 and FY17

30,000

35,000

40,000

45,000

50,000

Source: Company data, Credit Suisse estimates.

Figure 3: Margins to recover to ~16% in FY17

11.0%

12.0%

13.0%

14.0%

15.0%

16.0%

17.0%

1H16margins

Platformconsol

Product Mix FX/commodity

Op Lev FY17margins

Source: Credit Suisse estimates.

Figure 4: Stock performance correlated with JLR EBITDA growth

-25.0%

0.0%

25.0%

50.0%

-10%

0%

10%

20%

30%

40%

50%

FY12 FY13 FY14 FY15 FY16YTD FY17E

Tata Motors Consol EBITDA growth Stock performance (RHS)

Source: Company data, Credit Suisse estimates.

Extract from the Asian Daily, 8 December 2015

Bbg/RIC TTMT IN / TAMO.BO Rating (prev. rating) O (O) Shares outstanding (mn) 2,887.20 Daily trad vol - 6m avg (mn) 10.2 Daily trad val - 6m avg (US$ mn) 57.3 Free float (%) 66.0 Major shareholders Tata Sons

Price (04 Dec 15 , Rs) 399.90 TP (prev. TP Rs) 490.00 (490.00) Est. pot. % chg. to TP 23 52-wk range (Rs) 598.7 - 285.3 Mkt cap (Rs/US$ bn) 1,154.6/ 17.3

Performance 1M 3M 12M

Absolute (%) (1.3) 23.9 (23.4) Relative (%) 2.2 22.1 (13.2)

Year 03/14A 03/15A 03/16E 03/17E 03/18E

Revenue (Rs mn) 2,328,337 2,627,963 2,688,294 3,087,055 3,323,173 EBITDA (Rs mn) 374,029 421,138 384,740 467,134 505,042 Net profit (Rs mn) 139,910 139,863 120,284 163,374 175,649 EPS (CS adj. Rs) 43.5 43.5 35.4 48.1 51.7 - Change from prev. EPS (%) n.a. n.a. 0 0 0 - Consensus EPS (Rs) n.a. n.a. 37.0 51.0 61.0 EPS growth (%) 40.2 0 (18.5) 35.8 7.5 P/E (x) 9.2 9.2 11.3 8.3 7.7 Dividend yield (%) 0.5 0 0.3 0.6 0.9 EV/EBITDA (x) 3.9 3.7 4.2 3.5 3.1 P/B (x) 2.0 2.3 1.8 1.5 1.3 ROE (%) 27.1 23.0 18.3 19.6 17.7 Net debt(cash)/equity (%) 46.8 73.2 61.7 50.6 38.8

Note 1: ORD/ADR=5.00. Note 2: Tata Motors Limited (Tata Motors) is an automobile company. The company is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the company.

10 December 2015

Jump-Start 14

China Basic Materials Sector ------------------------------------------------------------------------------- New report: 2016 outlook—supply solution Trina Chen / Research Analyst / 852 2101 7031 / trina.chen@credit-suisse.com Gary Xu / Research Analyst / 852 2101 7017 / gary.xu@credit-suisse.com Joy Zhang / Research Analyst / 852 2101 7083 / joy.zhang.2@credit-suisse.com

● We view 2016E a year of weaker demand, with continued undershoot commodity prices below cash costs. But it will also be a year when supply exits to emerge, regardless of government plans, driven by unprecedented losses and financial distress. While earnings will continue to struggle, equities will start to factor the early benefit of potential industry supply solution, in our view.

● The over-capacity issue in China basic materials is more prominent than ever. We estimate that the intrinsic excess capacity is in the range of 30-50% (of the demand).

● Yet, a 20% industry capacity closure should be enough to lead to profit improvement in the next 1-2 years. We believe supply exit is a doomed event. Our ranking analysis that incorporates industry liquidity risks, SOE ownerships, employment and environment factors suggests that paper (packaging), cement and steel sectors are positioned to deliver earlier and more closures than others.

● Our most preferred segment is paper, followed by steel, copper, and cement, and we remain negative on aluminium and coal. Our top picks are Lee & Man, Conch and Zijin; least preferred are CNBM, Yanzhou and Chinacoal. Full report.

Figure 1: Sector summary—China basic materials Company Ticker Price Mktcap P/E (x) P/B (x)EV/EBITDA

New Old New Old Tccy US$bn 15E 16E 15E 16E 15E 16E 15E 16EAngang 0347.HK O O 4.3 6.7 3.1 2.9 n.a. n.a. 0.4 0.4 30.4 30.0 -6% -5%Baosteel 600019.SS O O 6.5 6.6 5.5 14.2 11.2 75.5 0.8 0.8 5.7 8.8 7% 1%Magang 0323.HK N N 1.7 1.9 1.6 1.6 n.a. n.a. 0.5 0.6 36.5 14.9 -16% -10%Shenhua 1088.HK N N 11.8 14.5 12.7 32.4 9.2 13.7 0.7 0.7 5.4 6.4 7% 5%Chinacoal 1898.HK U U 2.5 2.7 3.2 5.4 n.a. n.a. 0.4 0.5 23.9 n.a. -5% -10%Yanzhou 1171.HK U U 3.0 3.0 3.6 2.3 n.a. n.a. 0.4 0.4 11.3 42.5 -2% -9%Yitai 3948.HK U U 4.2 7.0 4.9 2.0 34.6 n.a. 0.6 0.6 13.6 32.2 2% -1%Conch 0914.HK O O 28.0 30.0 21.8 14.8 9.3 14.7 1.3 1.3 5.6 7.8 14% 9%WCC 2233.HK O O 2.0 2.2 1.6 0.9 67.0 10.4 1.0 1.0 7.6 3.9 2% 10%BBMG 2009.HK O O 11.5 11.4 5.3 3.3 9.3 6.5 0.6 0.6 12.0 8.5 7% 9%Sinoma 1893.HK N N 1.8 2.0 1.6 0.8 16.6 25.9 0.3 0.3 7.4 7.3 2% 1%CRC 1313.HK N U 3.0 3.5 2.5 2.1 12.5 22.7 0.6 0.6 9.5 10.0 5% 2%CNBM 3323.HK U U 3.7 4.8 4.1 2.8 12.0 33.1 0.4 0.4 9.9 11.7 3% 1%Shanshui 0691.HK U U 1.8 1.8 6.3 2.7 n.a. n.a. 2.0 2.5 n.a. n.a. -21% -27%TCCI 1136.HK U U 1.2 1.7 1.5 0.6 n.a. n.a. 0.3 0.3 9.3 22.6 -1% -1%JXC 0358.HK O O 10.6 11.5 9.2 4.1 15.9 22.2 0.6 0.5 5.6 6.6 3% 2%Chalco 2600.HK N N 2.4 2.5 2.5 4.2 n.a. n.a. 0.8 0.9 n.a. 19.2 -13% -7%Rusal 0486.HK N N 4.1 6.2 2.7 5.2 2.6 3.0 0.6 1.2 5.0 7.1 22% 41%MMG 1208.HK O O 2.9 3.2 1.6 1.1 n.a. 3.6 0.7 0.6 23.4 6.7 -7% 17%Zijin 2899.HK O N 2.6 1.9 2.0 5.4 14.5 13.6 1.2 1.1 8.1 6.6 8% 8%Zhaojin 1818.HK U U 3.0 3.8 4.1 1.6 18.5 23.7 1.1 1.1 10.2 11.1 6% 5%ND Paper 2689.HK O O 6.3 6.9 4.9 2.9 10.7 7.1 0.8 0.7 8.8 7.0 10% 10%Lee&Man 2314.HK O O 7.1 6.6 4.3 2.6 7.9 9.4 0.9 1.0 8.8 8.4 11% 11%

ROERate TP

Source: Company data, Credit Suisse estimates.

Supply solution, more than ever

The over-capacity issue in China basic materials is more prominent than ever. We estimate that the intrinsic excess capacity is in the range of 30-50% (of the demand), including 50% for steel, 34% for Al smelting, 31% for coal, 30% for cement, 26% for paper (packaging), but remains short for Cu. We estimate a 20% industry capacity closure should be enough to lead to profit improvement in the next 1-2 years. The risk however is that the policy that manages the exits, although emerging, remains. Nevertheless, we believe the supply exit is a doomed event, despite the social importance of the sector (16mn official jobs, nearly half of the industry capacity in SOE, Rmb13 tn in total liability), being challenged by poor profits and rising financial distress (negative 4.4% in ROE on average, with EBIT/finance cost at 1.42x, including the highly distressed level of 0.46-0.83x for steel and coal segments). The weakening

legacy support from banks is a key change versus the past that will lead to a higher probability of supply exit, in our view. Our ranking analysis that incorporates industry liquidity risks, SOE ownerships, employment and environment suggests that the Chinese paper (packaging), cement and steel sectors are positioned to deliver earlier and more closures than others.

Figure 2: Industry excess capacity—China basic materials

100% 100% 100% 100% 100% 100% 100% 100% 100%

50%34% 31% 30% 27% 26% 18%

-5%

-82%-50%

0%

50%

100%

150%

Steel Al smelting Coal Cement Coal-coastal Paper-pckg Steel-Hebei Cu smelting Cu mining

Domestic demand (2015E) Excess capacity (excluding net exports)

Industry excess capacity - excluding net exports (normalized to 2015E demand in %)

Source: Company data, Credit Suisse estimates.

Normalised long-term demand

Beyond the current cyclical weakness, we maintain our view that long-term demand for most China basic materials has either peaked or plateaued, in the context of infrastructure intensity achieved, commodity-related consumer product ownerships, versus peer countries in developed stages. The biggest drag is the negative infrastructure demand, which could halve versus the current level. We estimate: (1) LT cement and steel demand to fall notably by 16-28%, or 600 mn t for steel and 1.7 bn t for cement. (2) We see supported metal demand with a modest upside. (3) Coastal coal demand to decline 20% in the coming years. (4) Paper (packaging) has potentially 40% upside LT, due to its higher exposure to consumer-related segments, and a low base.

2016E: Pecking order

Our most preferred segment is paper (packaging), where margin expansion should continue, followed by steel (potential positive surprises in capacity closures) and copper (power grid and end of appliance destocking). We believe earnings have bottomed for cement, yet the potential delay in PC32.5 elimination implies margin improvement would only take place in late 2016E or in 2017E. Our least preferred segments are aluminium and coal, both with most undisciplined supply and weaker-than-expected demand outlook. We have cut our 2016E coal price by 17% to reflect potential lower transport costs.

Top picks

We cut earnings for most materials stocks by 2-210%, to reflect the weaker 2016E pricing and margin outlook. Earnings have yet to bottom, along with downside risks to consensus expectations, in our view. We prefer stocks with visible earnings floor, strong balance sheet, combined with differentiated company-specific strategy to counter the weak cycles. The negative surprises in the sector could arise from provisions from the balance sheet, due to risk from intangibles and goodwill, and long-dated AR. Our top picks are Lee & Man, Conch, and Zijin; least preferred are CNBM, Yanzhou, and Chinacoal.

Extract from the Asian Daily, 7 December 2015

10 December 2015

Jump-Start 15

Indonesia Media Sector ------------------------------ Assuming Coverage with OVERWEIGHT New report: Lights, camera...waiting for action! Jahanzeb Naseer / Research Analyst / 62 21 2553 7977 / jahanzeb.naseer@credit-suisse.com Benny Kurniawan

● We assume coverage of the Indonesia media sector with an OVERWEIGHT stance relative to the JCI, with an OUTPERFORM rating on MNCN and a NEUTRAL on SCMA.

● The past two years have been tough on the media sector as FMCG revenues came under pressure. We show that ad-spend rises faster than FMCG revenues when the later start to improve. FMCG revenues are likely to improve 10-12% in 2016-17.

● Consolidation starting to be visible: We observe ad-spend gravitate towards the top two players as they stand out from the pack on audience share. We are also seeing initial attempts at pushing pricing up by the top two players—should be positive for margins.

● MNCN's discount to SCMA appears excessive. As SCMA took audience share from MNCN and the market started to worry about USD debt on the latter's balance sheet, its valuation discount to SCMA widened to an all-time high. MNCN's capex is coming to an end, and FCF yield could improve to 7% in 2016. Our target price of Rp2,165 for MNCN implies 27% potential upside, and SCMA target price of Rp3,300 implies 10% potential upside. Full report.

Figure 1: Ad revenue is highly correlated with FMCG revenue—both are likely to recover in 2016

Source: Company data, Credit Suisse estimates.

High-beta play on FMCG revenue

As the economy comes under pressure and companies are forced to cut costs, inevitably advertisement takes the first hit. However, it also recovers faster when the revenues of FMCG companies recover (Figure 1). In previous recoveries, the advertisement revenue growth has been 0.8-1.2x the growth in FMCG revenues. Developing duopoly to help pricing and margins

The economic slowdown has led to consolidation in ad-revenues among the top channels, which has allowed them to make investments in content and further differentiate themselves. With this concentration of eye-balls, we are starting to see attempts at rationalising the pricing structure and reducing discounts to the biggest advertisers. SCMA has taken the lead on this at the cost of losing some revenue in 1H15. We believe MNCN is also likely to revise up its pricing starting 2016, improving margins by 50-100 bp.

Figure 2: MNCN and SCMA are now clear market leaders

Source: Company data, Credit Suisse estimates

Structural story intact

While we expect a cyclical recovery, the structural story continues to be strong. Indonesia remains one of the most attractive markets in Asia for free-to-air television. The three primary drivers are all positive: (1) the rising middle income class, (2) young population/fresh eyeballs, and (3) a lack of infrastructure for payTV.

Figure 3: Lowest ad-spend in the region underpins the long-term story

Source: Company data, Credit Suisse estimates

Rate MNCN an OUTPERFORM

We like the in-house content model of SCMA, but at 26x forward earnings, it appears baked in. On the other hand, US dollar debt and worries about loss of audience share to SCMA (starting Jan-14) have put pressure on MNCN's valuation—it now trades at the steepest discount ever to SCMA. We believe that FCF for MNCN will improve sharply in 2016, providing a 7% FCF yield, and margins should also improve. At the current level, we find it attractive on valuation, and hence rate it an OUTPERFORM with 23% potential upside.

Figure 4: Improving profitability and all-time low valuations

2015 ROE: 14%

2016 ROE: 16%

2017 ROE: 18%

10%

12%

14%

16%

18%

20%

22%

24%

26%

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5.5

6.0

6.5

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18

MN

CN

P/B

(x)

Current P/B 2.44x

Average P/B 4.09x

MNCN Improving ROE vs all time low PB MNCN PE/SCMA PE; at highest discount

Source: Company data, Credit Suisse estimates

Valuation metrics Rating TP Up/dn Div. yld ROE P/B Company Ticker (prev. Price chg to TP Year EPS chg (%) EPS EPS grth (%) P/E (x) (%) (%) (x)

rating) Local Target (%) (%) T T+1 T+2 T+1 T+2 T+1 T+2 T+1 T+2 T+1 T+1 T+1

MNCN MNCN.JK O (N) 1,710 2,165 (2,800) (23) 27 12/14 (36) (34) 97.0 117 (22) 20 17.6 14.7 3.4 14.1 2.4 SCMA SCMA.JK N (N) 3,010 3,300 (3,000) 10 10 12/14 (21) (26) 103 118 4 14 29.1 25.5 1.7 40.9 11.2

Note: O = OUTPERFORM, N = NEUTRAL, U = UNDERPERFORM. Source: Company data, Credit Suisse estimates

Extract from the Asian Daily, 7 December 2015

10 December 2015

Jump-Start 16

Asia Economics: EM Quarterly 1Q2016 ----------------------------------------------------------------- Follow China, not the Fed Santitarn Sathirathai / Research Analyst / 65 6212 5675 / santitarn.sathirathai@credit-suisse.com

● We argue that Asian central banks' monetary policy stance next year will be more influenced by economic and monetary policy cycles in China than in the past, and diverge from the US.

● Unlike the previous US Fed hiking cycle whereby virtually all Asian economies tightened their policies, we think this time Asian policy rates will stay lower for longer.

● Specifically, we expect rate cuts in India, Indonesia, Korea, Taiwan, and Thailand in 2016. We also continue to project further 75 bp rate cuts and 200 bp reduction in RRR in China.

● Given the challenging environment for exports, we expect growth in trade dependent economies including HK, Malaysia, Singapore, and Thailand to surprise the consensus on the downside. Meanwhile, more domestic-oriented economies with policy catalyst including Indonesia and the Philippines, could outperform expectations considerably. See full report.

We see three key reasons why Asian monetary policies will 'follow' China

rather the US Fed in 2016. (1) Economic growth in EM Asia is now more

in sync with that of China versus the US. (2) RMB movements have

greater bearings on monetary policy in the rest of Asia. (3) Most Asian

economies have built cushions to withstand shocks from US Fed rate hike.

Chinese slowdown expected to keep the Asian economic recovery weak, despite better US growth

We believe Asian exports have become significantly more reliant on

Chinese domestic demand than in the past (see Crisis fears and growth

concerns). The share of their exports going to China is now on par with

that to the US, when calculated on a final destination basis. This means

that a slowdown in Chinese domestic demand, especially investment,

could be sufficient to offset the potential boost from the expected

economic recovery in the US. Weaker Chinese investment also has

further knock-on impact via commodity prices such as those for coal and

industrial metals, affecting even less export-oriented economies such as

Indonesia. This is consistent with the decline in correlation of GDP growth

between the more trade dependent EM Asian economies and the US,

while the correlation with Chinese growth remains high.

The RMB movements have greater bearings on monetary policy in the rest of Asia

We think Asian central banks have become more reluctant to allow their

currencies to appreciate significantly against the RMB due to the potential

loss of competitiveness. This is particularly so for those who are reliant on

Chinese demand and/or have export structure similar to China, including

HK, KR, TW, MA, TH (see Asia: Living with RMB depreciation - identifying

vulnerable economies). As China industrial exporters move upstream and

into higher value added electronics and machinery overtime, the

competitiveness pressure on economies such as Korea and Taiwan's will

likely also grow.

Our FX team's modeling work has also shown that the RMB has already

become important reference currency for the region. Regression results

show that the sensitivities to the RMB have increased over time and are

highest for KRW, MYR and IDR, after controlling for changes in major

currencies (USD, EUR and JPY).

The importance of Chinese currency is also likely to increase overtime.

China is expanding its lending presence abroad, for example, through the

new China-led Asian Infrastructure Investment Bank and the "One Belt,

One Road" program. These are likely to create new RMB-denominated

international liabilities that will encourage Asian reserve manager to hold

RMB. Our FX team also expects the RMB's inclusion into the SDR basket

to have symbolic importance that could help drive leading to

diversification demand for the CNY ranging from $150 bn to $200 bn over

the next couple of years.

Most Asian economies have policy cushion to withstand US rate hikes

In our central scenario of a data-dependent US rate hike cycle and

manageable slowdown in China, we expect Asian economies to be able

to withstand the impact without having to tighten their monetary policy

stance in 2016 (see Crisis fears and growth concerns). Even Malaysia

and Indonesia, the two more vulnerable economies, have seen

improvement in resilience to US rate hikes.

Growth in trade dependent economies should surprise the consensus on the downside, while domestic-oriented economies (Indonesia and the Philippines ) could outperform consensus expectations

Our view that China is undergoing a structural slowdown implies a

challenging growth environment especially for the export dependent

economies. Hong Kong is most vulnerable to this trend, being close to

the epicenter of the slowdown, but Malaysia, Singapore and Thailand

are also vulnerable given their strong linkages between export

performance and domestic spending. In Malaysia, we also expect fiscal

contraction to provide additional headwinds to domestic demand growth in

2016. Our 2016 real GDP growth forecasts are below consensus for all

these economies.

In contrast, we think GDP in more domestic-oriented economies with

growth-supportive macro policies including India, Indonesia, Philippines,

and Korea could surprise the market on the upside.

Figure 1: Growth forecasts vs consensus 2015 2015 consensus 2016 2016 consensus

China 6.8 6.9 6.5 6.5 Hong Kong 2.3 2.2 2.0 2.2 India 7.7 7.5 7.8 7.8 Indonesia 4.6 4.7 5.2 4.9 Korea 2.5 2.5 3.0 2.9 Malaysia 4.8 4.8 4.4 4.6 Philippines 5.7 5.6 6.2 5.9 Singapore 1.9 1.8 1.9 2.2 Taiwan 1.0 1.0 2.3 2.3 Thailand 2.8 2.6 2.9 3.2

Source: Credit Suisse estimates, Consensus Economics

Extract from the Asian Daily, 10 December 2015

10 December 2015

Jump-Start 17

China Economics ----------------------------------------------------------------------------------------------- Emerging Markets Quarterly: Impacts from the stimulus are muted Dong Tao / Research Analyst / 852 2101 7469 / dong.tao@credit-suisse.com Weishen Deng / Research Analyst / 852 2101 7162 / weishen.deng@credit-suisse.com

● The growth rebound in 4Q15, triggered by government-sponsored infrastructure projects and interest rate cuts, seems more muted than previously anticipated. We expect the economy to stabilise briefly in 4Q, but to slide gradually again in 1H16.

● Still, we expect corporate profits to deteriorate significantly in 2016, as indicated by industrial sector nominal GDP growth. Corporate balance sheet deterioration may well be a theme in 2016, raising market concerns, in our view.

● We believe that the PBoC is likely to look at a deep cut in RRR in order to create more space for the banks combatting a rise in NPLs. We are looking for 200 bp of cuts in RRR in 2016, but believe that the PBoC has room to cut up to 400 bp if NPLs become a severe threat to financial stability. We look for three more rate cuts of 25 bp each on average.

● A new debate regarding macro policy styles has started lately among leading academics and policy makers. We expect supply-side policies to become more significant in terms of China’s macro policy mix in 2016.

Figure 1: Summary of macro forecasts Forecast* Previous

12 13 14 15F 16F 17F 15F 16F

GDP 7.7 7.7 7.3 6.8 6.5 6.5 6.8 6.5 Real private consumption 8.3 7.0 8.3 7.7 7.5 7.6 7.5 7.5 Real gross fixed capital formation 8.8 9.1 7.1 6.0 4.4 4.7 6.0 4.4 CPI inflation (yav) 2.6 2.6 2.0 1.4 1.3 1.7 1.4 1.3 One-year lending rate (%, ye) 6.00 6.00 5.60 4.35 3.60 3.60 4.35 3.60 Exports^ (%yoy) 7.9 7.8 6.0 -2.7 4.5 5.0 1.0 4.0 Imports^(%yoy) 4.3 7.2 0.5 -15.5 -6.0 2.0 -13.0 -5.0 Current account (% of GDP) 2.5 1.6 2.1 2.7 3.3 2.6 3.7 4.6 USDCNY exchange 6.24 6.07 6.20 6.43 6.57 6.74 6.60 6.80

Source: NBS, Credit Suisse Note: *All of the forecasts above are based on the assumption that there is no

credit events in the forecast horizon. ^ Figures follow General administration of Customs definition.

The growth rebound in 4Q15, triggered by government-sponsored infrastructure projects and interest rate cuts, seems more muted than previously anticipated. (1) The private sector has not appeared enthusiastic about following Beijing’s lead. (2) Banks seem reluctant to lend. (3) Government officials and SOE executives have been demoralised by the anti-corruption campaign and salary cuts. We expect the economy to stabilise briefly in 4Q, but to slide gradually again in 1H16. However, a hard landing is not our base-case scenario. While the manufacturing sector is visibly struggling, the service sector is robust, so the overall job market seems relatively healthier than industrial production or commodity prices might suggest. The success of the local government debt swap scheme has also reduced the imminent financial risks.

Still, we expect corporate profits to deteriorate significantly in 2016, as indicated by industrial sector nominal GDP growth. Feedback from the ground also suggests that not only are accounts receivable on the rise, but that some companies are now having to borrow to pay staff salaries. Corporate balance sheet deterioration may well be a theme in 2016, raising market concerns, in our view. A mirror image of that is the rise in bank non-performing loans. Our contacts among the banks seem increasingly concerned about the

NPL issue in 2016. We do not sense any systemic risk in the financial sector yet, but the cyclical down-cycle is likely to claim more victims in the financial sector in general. The corporate bond market has seen a surge in issuance, with very high valuations triggering talk about a bubble. Corporate bonds trading on exchange platforms counts for less than 4% of the bond market. We expect a few defaults, but again do not sense any systemic risks.

The PBoC has been active in easing, with both conventional and non-conventional tools. We believe that lowering funding costs in the real economy and providing necessary funding to the policy banks to boost growth are the two primary goals for the central bank. The central bank prefers selective easing over broad easing, as it believes that the banking sector is still unable to deliver sufficient liquidity to the real economy. That said, we believe that the PBoC is likely to look at a deep cut in RRR in order to create more space for the banks combatting a rise in NPLs. We are looking for 200 bp of cuts in RRR in 2016, but believe that the PBoC has room to cut up to 400 bp if NPLs become a severe threat to financial stability. We look for three more rate cuts of 25 bp each on average.

The MoF has been rather silent over the past two years regarding accommodative measures, as it focused on fiscal reforms and addressing the local government debt issue. As the economy continues to trend down and monetary policy is increasingly less effective in boosting the growth outlook, we expect slightly more active fiscal accommodation. However, it is unlikely that the government will launch another stimulus program similar to the Rmb4 tn one launched during 2008-09. The growth of fiscal revenue decelerated sharply and so did land sales. We would not be surprised if the fiscal deficit reaches 3% or above, leaving the fiscal authority limited space for extra spending, barring a crisis situation.

A new debate regarding macro policy styles has started lately among leading academics and policy makers. Recent thinking has advocated supply-side economics in favour of SOE reforms, production capacity cuts, encouragement for innovation, and tax cuts as the policy response to slow or reverse the current decline. We expect supply-side policies to become more significant in terms of China’s macro policy mix in 2016. The country has made significant progress in liberalising cross-border capital movements and facilitating two-way exchange rate expectations. The momentum of liberalisation is likely to continue in 2016, possibly including opening the local bond market to foreign investors, introducing the Shenzhen-Hong Kong Stock Connect (and others), and increased capital outflows via QDII and M&A. The devaluations in August, in our view, mark the end of a decade-long RMB appreciation story.

We expect a small RMB depreciation against the USD, but expect it to remain strong against a weighted currency basket. Fed tightening may create turbulence for Chinese dollar debt borrowers, but we are less concerned now than we would have been before as the domestic debt market is now available to fund the rollover.

Extract from the Asian Daily, 10 December 2015

10 December 2015

Jump-Start 18

Malaysia Market Strategy ------------------------------------------------------------------------------------- New report: 2016 Outlook—Another challenging year Tan Ting Min / Research Analyst / 60 3 2723 2080 / tingmin.tan@credit-suisse.com

● Too much optimism built into 2016. The market expects corporate margins to expand in 2016, but we believe this is unachievable due to cost inflation from the weak MYR, the rise in minimum wage, and record-low consumer sentiment. Market 2016 EPS is projected to grow 7.9%—too optimistic. There is rising risk that Malaysia will register three consecutive years of negative growth.

● Worse than the 2008-09 GFC? Yes. There is clear deterioration vs the GFC in the MYR level, oil price, forex reserves, and current account, among others. Foreign ownership of Malaysian government bonds has doubled to 46%.

● Malaysia's P/B valuations look attractive relative to its history, but we expect negative news flow to continue: derating of the MYR, political noise, Zeti's retirement in April 2016, rising delinquencies, and further belt tightening if oil prices do not improve.

● Key ideas. We are UNDERWEIGHT banks, property, and REITs; and OVERWEIGHT agribusiness, construction, gaming/media and healthcare. Top UNDERPERFORM: CIMB. Top OUTPERFORMs: Genting Plantations and Gamuda. Full report.

● Figure 1: CS Top Outperforms and Underperforms for 2016 Price TP Upside Mkt cap ADV P/E

Name Ticker (RM) Rating (RM) (%) (US$ mn) t t+1 t+2

Axiata AXIATA MK 6.10 O 7.55 24% 53,778 57.0 22.2 19.4 19.0 Genting GENT MK 7.18 O 10.30 43% 26,876 31.3 17.8 17.7 13.8 Astro ASTRO MK 2.83 O 3.70 31% 14,730 11.1 28.3 23.4 19.9 IJM IJM MK 3.37 O 3.75 11% 12,041 19.1 10.5 20.4 16.2 Gamuda GAM MK 4.57 O 6.00 31% 10,995 16.2 15.4 15.9 11.6 GentPlant GENP MK 9.99 O 11.50 15% 7,788 6.8 20.1 35.0 22.6 AFG AFG MK 3.56 O 3.97 12% 5,511 4.5 10.4 10.4 10.0 AirAsia AIRA MK 1.36 O 1.90 40% 3,785 55.3 7.5 5.0 4.9

CIMB CIMB MK 4.51 U 4.06 -10% 38,458 56.0 11.7 11.7 9.7 MAHB MAHB MK 5.62 U 4.80 -15% 9,325 7.1 30.0 46.2 32.0

Note: O=Outperform; U=Underperform. Source: Company data, Credit Suisse estimates.

2016 Outlook: Another challenging year

We believe that it will be another difficult year for Malaysia and that Malaysia will underperform its regional peers. The market is far too optimistic on the fundamentals of Malaysia and so, will likely be disappointed again in 2016.

The market expects corporate margins to expand in 2016, but we believe this is unachievable due to cost inflation from the weak MYR, the rise in minimum wage, and record-low consumer sentiment. The market also expects 2016 EPS to grow 7.9%, which is too optimistic, in our view. There is rising risk that Malaysia will register three consecutive years of negative growth.

Worse than the GFC? Yes

We believe that this slowdown will be worse than the 2008-09 Global Financial Crisis (GFC) but not as bleak as the Asian Financial Crisis (AFC). There is clear deterioration in some fundamental ratios currently vs the GFC: (1) oil price was above US$80 per barrel during the GFC, but is now below US$50; (2) the MYR has weakened significantly (25%), vs during the GFC when it only weakened by 16% (peak to trough); (3) forex reserves to short-term external debt and to gross external debt are worse than the GFC and AFC levels—this

means that it would be difficult for Malaysia to defend the MYR; (4) foreign ownership of MGS has doubled from the GFC levels to 46% currently; (5) current account, external debt, private credit, public debt, and household debt as a percentage of GDP have deteriorated from GFC levels; and (6) loan-to-deposit ratio is approaching the AFC levels.

Are we there yet? No

Although Malaysia's P/B valuations look attractive relative to its history, we expect negative news flow to continue—derating of the MYR, political noise, Zeti's retirement in April 2016, rising delinquencies, and further belt tightening if oil prices do not improve.

What could surprise on the upside in 2016?

We will turn positive on Malaysia if oil prices rebounded convincingly. We are also watching the impact of China's inflows into Malaysia, fund repatriation by government-linked investment corporations (GliC), and reinitiation of Valuecap. In addition, Malaysia is a 'consensus sell' which might mean that it does not take much to set it rallying.

Light at the end of a very long tunnel

We identify three long-term positive catalysts for Malaysia, but the impact will only be felt beyond 2018.

(1) The Trans Pacific Partnership Agreement (TPPA), involving 12 countries, is to be a free trade region of 800 mn people, accounting for 30% of global trade and 40% of the world's GDP. We believe that the TPPA is generally positive for Malaysia, but at best, the TPPA will only be rectified in early 2018.

(2) China's "One road, one belt" aims to promote infrastructure development in Asia, the Middle East, and Europe to enable deeper economic cooperation via ports, railway lines, and power grids.

(3) The Asean Economic Community (AEC) aims to integrate the SEA into a single market of 625 mn people and a combined GDP of US$2.5 tn. The ASEAN as a single economic block could potentially become the fourth-largest economy in the world by 2030.

Top ideas for 2016

OVERWEIGHT agribusiness, construction, gaming/consumer and healthcare. UNDERWEIGHT banks/financials, property, and REITs. Top Outperforms: Gamuda, Genting Plantations. Top Underperform: CIMB.

Figure 2: Market expects EBITDA margins to rise - too optimistic

16%

17%

18%

19%

20%

21%

22%

23%

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015E

2015E:21.6%

2014

19.5%

2013: 17.8%

2016E: 22.1%

Source: Bloomberg, Credit Suisse estimates.

Extract from the Asian Daily, 9 December 2015

10 December 2015

Jump-Start 19

Pakistan Market Strategy ------------------------------------------------------------------------------------- New report: 2016 outlook—Time to 'walk the talk' Farhan Rizvi, CFA / Research Analyst / 65 6212 3036 / farhan.rizvi@credit-suisse.com Fahd Niaz, CFA / Research Analyst / 65 6212 3035 / fahd.niaz@credit-suisse.com

● With macro stabilisation policies in the past two years bearing fruit, we expect 2016 to start a fixed-capital formation wave that should lift investment-to-GDP ratio to 15.5%/17.0% by FY16/17 (from 13.5%). The government’s focus is now firmly on public sector development, and big ticket commitments under China Pakistan Economic Corridor (CPEC) are in the pipeline. Full report.

● Tangible evidence includes a 57% surge in development spending during Jul-Sep while net FDI from China rose 53% in Jul-Oct.

● As discussed previously, we believe that Pakistan has a resume that qualifies for EM membership. MCB, HBL, OGDC, FFC, Lucky, Engro and UBL are likely to be a part of the EM index with a combined share of ~16 bp. Our back of the envelope calculation suggests incremental flows of ~US$250-300 mn can be attracted.

● Stock exposure should comprise ideas piggy-backing the macro recovery, plays on domestic demand and selective energy names. We retain the view that risk-reward profile is skewed to the upside; and cheap valuations at 7.8x EPS with 11% profit growth (16% ex-oil) and a sustainable D/Y of 6-7% is an enticing combination.

Figure 1: CS Pakistan—focus list (2016E) Price TP M. cap P/E P/B ROE Reuters Name of company (PRs) (PRs) Rat (US$ mn) (x) (x) (%)

HBL.KA Habib Bank Limited 211.2 265.0 O 2,990 8.2 1.5 18.9 UBL.KA United Bank Limited 152.7 218.0 O 1,804 6.6 1.2 18.0 EGCH.KA Engro Corporation 280.1 368.0 O 1,416 7.2 1.7 24.3 DGKH.KA DG Khan Cement 136.6 175.0 O 577 6.9 0.8 11.1 KELE.KA K-Electric 7.6 10.5 O 2,015 8.3 1.3 15.5

Source: Reuters, Credit Suisse estimates While we have been bullish on Pakistan as an increasingly attractive investment destination, our recent tours have made us more optimistic. A marked improvement in corporate sentiment was visible with law and order gains, political stability and government commitment to address energy shortages being some key factors.

Macro tailwinds very much in play

After achieving much needed macro stability under the eye of the IMF, Pakistan now stands on the verge of a multi-year investment cycle that should pull up investment-to-GDP ratio to 15.5/17.0% in FY16/17E (from 13.5% currently). The government’s aggressive development agenda together with commitments under CPEC should lead this phase. Evidence is already visible with development spending up 57% in 1Q FY16 while net FDI from China has risen 53% YoY in 4M FY16. Moreover, CPI at low single digits (2.8% in Nov) should not rush SBP into tightening. FX reserves are close to five months of import cover, driven by windfall gains of lower oil prices and rising remittances. Along with increased consumption and higher industrial activity from energy supplies, we see GDP growth rising to 4.5-5.0% in FY16/17E versus an average of 3.9% over FY11-15.

Knocking on the doors of the EM club

As we discussed in an earlier report, Pakistan appears to have ticked all the right boxes for a potential upgrade to MSCI EM Index in the May 2016 review, meeting all quantitative and most qualitative criteria. The key area of improvement relates to "Stability of Institutional Framework" which is aimed at granting more muscle to the regulator.

We have seen solid progress on this front that has filtered into a ramp up of broker audits in the past few weeks. In the event of the Pakistan market being upgraded to EM (from FM), we think MCB, HBL, OGDC, FFC, Lucky, Engro and UBL are likely to be a part of the EM index with a combined share of ~16 bp. Despite the low presence in EM (vs 8.9% in MSCI FM), we expect the market to attract more attention from EM dedicated funds (US$250-300 mn of incremental flows) due to a structural growth story on the horizon. An upgrade could potentially allow Pakistan to follow the footsteps of the recent EM entrants (UAE and Qatar) where both saw P/E expansion of 42-47% in the 12 months following the upgrade decision.

What could surprise in 2016?

We see four themes that can surprise in both positive and negative contexts depending on the time horizon one looks at them from: (1) softer CPI paving room for another rate cut, (2) deferment of MSCI EM upgrade decision would be slightly negative particularly for MCB and HBL if anticipated flows of ~US$120 mn get delayed, (3) revival of economic ties with Iran and (4) Pakistan’s inclination for another IMF program in order to ensure discipline on structural reforms.

Valuations imply a good entry point

Current P/E of 7.8x stands at 26% discount to Pakistan's last macro bull-cycle of 2004-08. Moreover with a valid case of upgrade to EM, there is room for Pakistan's valuation discount to MSCI EM Asia to narrow further (from 28% currently) on the back of higher earnings growth profile (11% versus 8%). We favour HBL & UBL as good proxies to the macro recovery theme due to their strong balance sheets, dominant franchises and low leverage. Elsewhere, ENGRO offers the most diversified exposure to growth businesses (food and power), while DGKC will continue to benefit from the rising infrastructure spending and likely investments under the CPEC. Within energy, we are selective and like KE as it rides a wave of electricity demand growth (5-6%), are investing heavily in transmission upgrade.

Figure 2: 8-9% discount to MSCI EM Asia during Pakistan’s previous EM stint suggests significant re-rating potential from current levels

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14

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15

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MSCI Pakistan discount to MSCI EM Asia - P/E (x)

Source: MSCI, Credit Suisse estimates.

Extract from the Asian Daily, 10 December 2015

10 December 2015

Jump-Start 20

Pakistan Market Strategy ------------------------------------------------------------------------------------- New report: Knocking on the doors of the EM club Farhan Rizvi, CFA / Research Analyst / 65 6212 3036 / farhan.rizvi@credit-suisse.com Fahd Niaz, CFA / Research Analyst / 65 6212 3035 / fahd.niaz@credit-suisse.com

● Pakistan appears to have ticked all the right boxes for a potential upgrade to MSCI EM Index in the May 2016 review, meeting all quantitative and most qualitative criteria set by the MSCI. Full report.

● The only real stumbling block is the "Stability of Institutional Framework". However, we have seen solid progress on this front with higher powers given to the SECP with more in the pipeline.

● MCB, HBL, OGDC, FFC, Lucky, Engro and UBL are likely to be a part of the EM index with a share of ~16 bp. MCB would lead in terms of weightage within MSCI Pak with 20.5% followed by HBL (19.5%) and OGDC (13.5%), etc. Despite the low presence in EM (vs 8.9% in MSCI FM), we expect the market to attract more attention from EM dedicated funds (US$250-300 mn of incremental flows) due to a structural growth story on the horizon.

● An upgrade could potentially allow Pakistan to follow the footsteps of the recent EM entrants (UAE and Qatar) where both saw a sharp P/E expansion by 42-47% in the 12 months following the upgrade decision. At 7.2x EPS, we remain upbeat on handsome returns in equities with HBL, UBL, ENGRO, DGKC and KE as our top ideas.

Figure 1: MSCI Pakistan index pro-forma weights in event of EM upgrade Weight in MSCI Pro-forma weight in Estimated flows All figures in (%) Pakistan Index MSCI EM Index (US$mn)

MCB 20.54 0.03 61.6 HBL 19.53 0.03 58.5 OGDC 13.48 0.02 40.5 FFC 12.47 0.02 37.4 Lucky 11.95 0.02 35.8 Engro 11.05 0.02 33.1 UBL 11.01 0.02 33.0

Total 100 0.16 300.0

Source: MSCI, SBP, EPFR Global, Morningstar, Credit Suisse estimates

Most of the ground covered for EM re-inclusion

Pakistan appears to have ticked all the right boxes for a potential upgrade to the MSCI Emerging Markets Index in the May 2016 review, meeting all quantitative and most qualitative criteria. Earlier this year, MSCI appreciated the maturity in Pakistan's market. In our view, the only real stumbling block has been the "Stability of Institutional Framework", which pertains to the strengthening of law enforcement and record of government dealings with foreign investors.

Regulator flexing its new muscles under the IMF program

The new SECP Act (a key structural benchmark under the IMF program) was passed in May 2015. This modernises the framework of security exchanges, depositories and clearing houses and provides more powers to the SECP to prosecute those involved in insider trading and other fraudulent activities. Moreover, it allows investigations on the basis of trading patterns and use of electronic data and transaction as evidence. SECP now also enjoys the powers to impose hefty fines and imprisonment. The law incorporates global benchmarks such as IOSCO principles of securities’ regulation and investor protection, and provides for implementation of advanced reforms for preventing market abuses and manipulation practices.

These are encouraging developments with more discussions underway with the IMF to further enhance regulatory muscle. In this vein, a revised bill is targeted in April 2016. We believe there is a high probability of MSCI approving Pakistan's re-entry to the EM Index in the May-16 review. The pro-active approach of the SECP in recent months through broker audits outlines a structural shift in the regulator's functioning from reactive to pro-active.

Sizeable net flows despite Pak's overweight status in FM

The biggest question from clients is the amount of incremental flows that the market can attract. While it is difficult to quantify the exact quantum given the varying degree of fund management styles, the current AUMs within Emerging Markets in the context of a likely Pakistan weight of 16 bp, suggest that incremental flows can amount to US$250-300 mn (1.4-1.6% of free float). We have also run a sensitivity test with a worst case scenario of complete liquidation of FM flows in which case we estimate net FII outflow of US$800 mn, though we rule out such an extreme scenario. Our discussions with Frontier Market Funds indicate that Pakistan will continue to be in their basket.

Taking clue from the recent EM entrants (UAE and Qatar), we see potential for re-rating. Both markets saw a 42-47% expansion in P/Es in 12 months post the upgrade decision; and given the high correlation of Pakistan equities with FII flows, we believe history can repeat itself.

Figure 2: Can we see a repeat of UAE & Qatar re-rating episode of 2013?

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Source: Bloomberg.

Figure 3: CS Pakistan—focus list (2016E) Price TP M. Cap P/E P/B ROE Reuters Name of company (PRs) (PRs) Rat (US$mn) (x) (x) (%)

HBL.KA Habib Bank Limited 208.5 265.0 O 2,902 8.1 1.5 18.9 UBL.KA United Bank Limited 154.3 218.0 O 1,792 6.7 1.2 18.0 EGCH.KA Engro Corporation 277.6 368.0 O 1,380 7.1 1.7 24.3 DGKH.KA DG Khan Cement 133.7 175.0 O 556 6.8 0.8 11.1 KELE.KA K-Electric 7.2 10.5 O 1,897 7.9 1.2 15.5

Source: Reuters, Credit Suisse estimates

Extract from the Asian Daily, 7 December 2015

10 December 2015

Jump-Start 21

Taiwan Market Strategy --------------------------------------------------------------------------------------- New report: Outlook 2016—enough global health to sustain growth? Chung Hsu, CFA / Research Analyst / 886 2 2715 6362 / chung.hsu@credit-suisse.com Chien Po Huang / Research Analyst / 886 2 2715 6342 / chien-po.huang@credit-suisse.com

● While we expect TW to remain a key beneficiary of US-led growth with the Fed rate hike and stronger USD, we estimate profit growth to slow to 4% from 6% in 2015 and 23-37% in 2013-2014.

● The growth slowdown will be driven by (1) a high earnings base; (2) normalised (lowered) capital market/FX profit contribution; (3) more tech inventory adjustment in the early part of the year and; (4) negative impact from China's weak growth. On a YoY basis, we estimate profits for the market to see 10-12% decline in 1H16 before staging 17-20% growth in 2H16.

● We believe that govt policies will further shift to reforms if the DPP does win the Presidential and Legislative elections in Jan-16. The most visible change will be in tax and pension reforms and to also raise funding to build a stronger social safety net as well as strengthen support for SMEs. Yet, major economic agreements with China will remain stalled at least until 2017.

● We set our year-end 2016 TAIEX target at 9,000 (Click here for full report) and maintain our slight overweight on tech since Sep-2015. Top picks: SPIL, Delta, Hon Hai, E Sun and Uni-President.

Figure 1: CS Taiwan top picks for 2016 Price TP P/E (x) P/B (x) ROE (%) Yield Company Rating (NT$) (NT$) 2016 2016 2016 (%)

SPIL O 44.6 52.0 11.6 1.86 16.4 6.4 Delta O 158.5 196.0 19.4 4.78 25.2 3.6 Hon Hai O 85.0 108.0 9.0 1.19 13.9 5.6 E. Sun O 19.8 23.0 9.9 1.19 12.7 2.0 Uni-President O 54.4 64.0 16.8 2.92 18.1 3.6

Source: DataStream, Credit Suisse Research

Benefit from resilient US growth but at slower pace

Profit growth slowdown should be driven by (1) high earnings base with consensus forward EPS estimates at 1 std dev above the LT growth trend vs 1 std dev below three years ago; (2) normalised (lower) capital market and FX earnings contribution; (3) sluggish consumer tech demand with more inventory adjustment; and (4) negative impact from weak Chinese growth. These factors were felt more severely in 2H15 and the inventory adjustments should run their course by 1Q16, setting up for easier compares through 2016. We estimate profits for the market to see a 10-12% decline in 1H16 before 17-20% YoY growth in 2H16.

We believe exporters with larger exposure to developed markets and the USD revenue mix will see relatively better earnings growth with some financials benefiting from the US rate hike. Yet, businesses focused on the domestic market and China will likely stay weak.

Increasing government's policy focus on reforms

Taiwan is likely to face a major political change in 2016 with the opposition DPP (Democratic Progressive Party) likely to win the Presidential election and possibly gaining control of the Legislature, according to the latest polls. This could mark the first time that the DPP will control both the Executive and Legislative branches of the government, thereby enabling the new government to implement more changes.

We believe, based on DPP's agenda, that the most likely and visible changes under DPP (other than cross-strait) would be in tax and

pension reforms to raise funding to build a stronger social safety net (i.e., long-term senior care and social housing). This means potentially higher inheritance, corporate and capital gains tax for Taiwan in the medium term with the govt expected to also shift resources into SMEs from larger corporates.

Figure 2: Consensus forward EPS expectation is still at 1.0 sd above long term growth trend vs 1.0 sd below three years ago

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Source: DataStream, Credit Suisse estimates.

Figure 3: YoY profit growth will be negative in 1H16 before strong rebound in 2H16

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Source: DataStream, CEIC, TEJ, Credit Suisse research.

Figure 4: Taiwan market's PB is 1 stdev below LT average

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(X) CS Taiwan coverage P/B

Source: TEJ, Credit Suisse research.

Maintain slight OVERWEIGHT on tech

Our OVERWEIGHT stance on tech since early Sep (click here) has helped our model portfolio to further outperform by 5% in the past three months with 11% outperformance YTD and 31% since August 2013. Within the Taiwan context, we maintain slight tech OVERWEIGHT due to (1) better growth (+11.8% in 2016 vs non-tech's 4.3% and financial's -13%); (2) slightly cheaper valuation on much better ROEs; and (3) more upside potential from the further strength in USD.

Extract from the Asian Daily, 4 December 2015

10 December 2015

Jump-Start 22

Asia Semiconductor Sector --------------------------------------------------------------------------------- New report: Credit Suisse Tech Conference 2015: Day 3 highlights—Mobile content gains prop up slowing units Randy Abrams, CFA / Research Analyst / 886 2 2715 6366 / randy.abrams@credit-suisse.com Jerry Su / Research Analyst / 886 2 2715 6361 / jerry.su@credit-suisse.com Haas Liu / Research Analyst / 886 2 2715 6365 / haas.liu@credit-suisse.com

● Smartphone content growth highlighted as units slow. Component suppliers expect content gains to outgrow units. RF suppliers see a mid-teen revenue growth opportunity, benefiting Win Semi and VPEC. Mediatek sees blended ASPs up in 4Q and potential flat to up in 2016 though 40% GMs may not be the floor on competition.

● Himax/Vanguard rush orders in driver ICs. Himax 4Q15 is tracking better on rush orders for 4k2k TVs and small/medium driver ICs. We believe Vanguard is seeing similar upside across small/mid size and PMIC to lift 4Q15 sales/GMs to high-end.

● Teradyne seeing some retooling for the even year. Back-end test traditionally does better in even years due to Moore’s Law’s 2-year cadence and bigger iPhone upgrades. TER sees orders start recovering in 4Q15 and growing meaningfully in 1Q16 boding well for ASM Pacific where we see a seasonal/cyclical trade into 1H16.

● Stock outlook: display components, RF and China proxies remain the conference theme. Key stocks supported by the conference themes would be: (1) China IC chain investments; (2) equipment technology buys and cyclical order recovery; (3) display component rebound; and (4) a China smartphone recovery. Link

Figure 1: Credit Suisse Tech Conference 2015—key presentations

Day 2:Skyworks, ASML, Nvidia, STMicroelectronics, Microchip, AMD, Cadence, Infineon,

Silicon Motion, Analog Devices, Mellanox

Day 3: Cree, Microsemi, Qorvo, Teradyne, Dialog, Silicon Labs Source: Credit Suisse

The final day of the CS annual technology conference featured Cree, Dialog, Microsemi, Qorvo, Teradyne, and 1x1s from Himax and Mediatek. The following are takeaways from the final day including from CS Asian tech display analyst Jerry Su. Smartphone content growth highlighted as units slow Smartphone component suppliers emphasised content gains to outgrow slowing smartphone units. RF suppliers Qorvo and Skyworks see a mid-teen revenue growth opportunity the next few years from more RF, benefiting our Asian RF picks, VPEC and Win Semi. Dialog Semi also targets a 20% growth CAGR, as its PMIC integrates analog and it grows Internet of Things' (IoT) sales. Mediatek also is seeing blended ASPs up in 4Q15 and sees potential same flat-to-up trend in 2016 on a shift to 4G and Helio, though 4G is below average and 40% GMs may not be the floor due to competition.

Figure 2: Mediatek 4Q15-1Q16 and 2015-2016 estimates summary 3Q15 4Q15 1Q16 2015 2016 2017

(NT$ mn) Actual CS Street Guidance CS Street CS Street CS Street

Sales $56,962 $58,715 $52,487 NT$57.0-60.4bn $53,400 $47,025 $210,258 $200,990 $233,050 $214,375

Chg 21.1% 3.1% -7.9% 0% to +6% -9.1% -10.4% -1.3% -5.7% 10.8% 6.7%

GM% 42.7% 40.4% 44.2% 38.5%-41.5% 40.1% 43.9% 43.8% 45.4% 40.0% 44.3%

OpM% 13.4% 8.5% 13.8% 4.5-11.5% 9.0% 13.3% 12.9% 15.0% 10.9% 15.0%

Net Inc. 7,954 5,004 7,089 NT$32.7 4,869 6,244 27,662 28,855 24,539 30,898

EPS (NT$) $5.09 $3.20 $4.61 $54-57bn ex Rich $3.11 $4.14 $17.70 $18.34 $15.70 $19.84

P/E Multiple 14.1 14.5 15.9 13.4 Source: Company data, Credit Suisse estimates, Bloomberg consensus.

Himax/Vanguard rush orders in driver ICs Himax's 4Q15 sales are tracking better on rush orders for 4k2k TVs and small/medium-driver Ics, and it sees potential for that to extend into 1Q16. We also believe Vanguard is seeing similar upside for small/mid-size and power management lifting 4Q15 sales/GMs to high-end.

Figure 3: Vanguard 4Q15-1Q16 and 2015-2017 estimates summary 3Q15 4Q15 1Q16 2015 2016 2017

(NT$ mn) Actual CS Street Guidance CS Street CS Street CS Street CS Street

Sales 5,296 5,242 5,426 NT$5.1-$5.4bn 5,032 5,432 23,079 23,393 23,147 24,394 24,822 25,646

QoQ (%) -13.8% -1.0% 2.5% -4% to +2% -4.0% 0.1% -3.6% -2.3% 0.3% 4.3% 7.2% 5.1%

GM (%) 27.2% 27.2% 28.0% 26-28% 27.0% 28.4% 29.5% 30.0% 31.5% 31.4% 33.1% 34.2%

OpM (%) 16.9% 16.6% 17.7% 15.5-17.5% 16.1% 18.5% 19.5% 19.8% 21.4% 21.6% 23.1% 24.2%

Net Inc: 851 771 851 721 884 4,054 884 4,303 884 4,953 884

EPS (NT$) 0.51 0.47 0.52 0.44 0.55 2.45 2.54 2.60 2.79 3.00 3.21 Source: Company data, Credit Suisse estimates, Bloomberg consensus.

Teradyne seeing some retooling for the even year Back-end test traditionally does better in even years due to Moore’s Law’s 2-year cadence and bigger iPhone upgrades versus the mid-cycle “s” refresh. TER expects more tooling including the potential for some orders as InFO adds a new supplier. TER orders have bottomed and started to recover by low single digits to double-digit growth in 4Q15 and should grow meaningfully in 1Q16 boding well for ASM Pacific where we see a seasonal/cyclical trade into 1H16. Silicon Labs concentrating resources on the Internet of Things SLAB is putting most of its R&D resources into IoT applications to support strong growth for its SoCs joining MCU, connectivity and RF. The company also has Zigbee and BT Low Energy. Stock outlook: Display components, RF and China proxies remain the conference theme Conference tone was for muted positive growth, with China smartphones better, comm equipment components recovering from a 1H pause and Apple lower into 1Q16 though the overall inventory picture is normal in semis and display is driving some short-term rush orders. Key stocks supported by the conference themes would be: (1) China IC chain investments (SMIC/Hua Hong); (2) equipment technology buys and cyclical order recovery (ASMP/Hermes); (3) a display component rebound (Himax/Vanguard), and China smartphone recovery (SPIL).

Figure 4: Asian Semiconductor coverage universe valuation summary Price Target Inv'ment Target P/E P/B ROE Div Yld

4-Dec Local Curcy Rating upside 2015 2016 2015 2016 2015 2016

Foundry

TSMC 142.5 156.0 NTRL 9.5% 13.2 11.9 3.1 2.7 25.2% 24.1%

UMC 12.3 13.5 NTRL 10.2% 13.1 13.6 0.7 0.7 5.2% 5.0%

SMIC 0.81 0.97 OPFM 19.8% 22.6 21.3 1.2 1.2 5.8% 5.7%

Vanguard 40.8 50.0 OPFM 22.7% 17.0 15.7 2.5 2.5 14.5% 15.7%

Hua Hong 7.59 11.00 OPFM 44.9% 9.4 11.9 5.0 4.9 7.1% 5.4%

Total 13.5 12.2 3.5 2.9 23.5% 22.3%

Packaging & testing

ASE 36.4 42.0 NTRL 15.5% 14.5 12.1 1.8 1.7 12.7% 14.2%

SPIL 45.0 52.0 OPFM 15.6% 12.9 11.7 1.9 1.9 15.0% 16.4%

Powertech 71.8 78.0 NTRL 8.6% 14.4 12.0 1.7 1.5 11.9% 13.3%

Amkor 6.9 5.5 OPFM -19.7% 19.5 15.1 1.3 1.2 7.1% 8.6%

Total 14.5 12.3 2.1 1.7 13.0% 13.9%

IC design

MediaTek 274.0 250.0 NTRL -8.8% 14.4 17.5 1.7 1.7 12.0% 9.8%

Realtek 74.5 73.5 NTRL -1.3% 15.7 14.2 1.9 1.8 11.4% 12.9%

WPG 32.2 40.0 NTRL 24.2% 9.1 8.1 1.1 1.1 12.9% 14.0%

Total 13.6 15.3 2.0 1.6 13.3% 10.7%

Semiconducottor equipment

Hermes 1,135.0 1,400.0 OPFM 23.3% 33.2 24.3 6.3 5.4 19.6% 23.8%

ASMP 61.3 75.0 OPFM 22.4% 16.1 22.3 3.0 3.0 19.4% 13.7%

Total 3.5 4.7 0.8 0.7 20.0% 13.9% Source: Company data, Credit Suisse estimates, Bloomberg consensus.

Extract from the Asian Daily, 7 December 2015

10 December 2015

Jump-Start 23

China Components Sector ----------------------------------------------------------------------------------- Luxshare and Merry a new force in the acoustic market Sam Li / Research Analyst / 852 2101 6775 / sam.li@credit-suisse.com Pauline Chen / Research Analyst / 886 2 2715 6323 / pauline.chen@credit-suisse.com Kyna Wong / Research Analyst / 852 2101 6950 / kyna.wong@credit-suisse.com

● Luxshare announced Monday that it will purchase 63 mn shares in Merry's (2439.TW, covered by Derrick Yang) placement at no more than Rmb800 mn. It also announced a Rmb4.6 bn placement plan on 26 Nov to finance various expansion projects including acoustic/RF module, Type-C connector, smart device connector module and related accessories.

● Overall, we see these investments as positive to Luxshare's business portfolio expansion, slightly negative to GoerTek on the EarPods business, and having very limited impact on AAC in the medium term.

● We still expect the acoustic upgrades at Apple and China smartphone camp—on which we could see more visibility in late 1Q16—to be common catalysts for acoustic players, especially for AAC and GoerTek in 2016-17.

● We raise Luxshare's TP to Rmb47.2 (still OUTPERFORM) for earnings revision and methodology change, cut GoerTek's TP to Rmb40.8 for slight share loss at EarPods but maintain OUTPERFORM, and remain NEUTRAL on AAC.

Figure 1: Summary of Luxshare's investment plan Investment area Amount (Rmb mn) After-tax payback period(yrs)

Acoustic/RF module 1,000 6.73 Structural part/ME module 1,000 5.28 USB Type-C connector 650 7.56 Cables and wire harness 750 7.07 Smart device connector module 400 6.35 Electroplating in FPC production 300 5.36 Supplement working capital 500 Merry's 25% equity 800

Source: Company release

Luxshare announced two investments

Luxshare plans to purchase 63 mn shares in Merry's private placement with an investment of Rmb800 mn. Luxshare will become the largest shareholder owning 25% of equity. The investment plan is pending approval from Merry's shareholders (EGM on 22 Jan 2016) as well as the regulator in Taiwan. Luxshare also announced placement plan to raise Rmb4.6 bn by issuing no more than 158 mn shares, for expansion projects in acoustic/RF module, Type-C connector, connector module and other accessories.

New competition in acoustic but limited mid-term impact

We believe that the Luxshare-Merry alliance, if done, would bring in new competition to the market. But we also expect the path to be long.

Overall, we see this investment as positive to Luxshare's business expansion, slightly negative to GoerTek on the EarPods business, and having very limited impact on AAC in the medium term. Key analysis: (1) Leveraging Luxshare's cable/connector and Merry's acoustic component capabilities, we believe it's likely that the alliance will first explore the earphone business (such as EarPods of Apple), and some cross-selling of current products to the existing client base. (2) Considering the deal's expected conclusion time (2Q16), suppliers' different cost structures (GoerTek and Foster) and the entry barriers for components (receiver and microphone), we believe it will be very challenging for the alliance to get a meaningful share in EarPods in 2016, but probably some share in 2017, which we believe could be more at the cost of Foster rather than GoerTek. (3) For miniature acoustic components, we see the area as having high entry barriers, and therefore expect the alliance to increase share only in the mass market rather than premium clients in the medium term.

Acoustic upgrade to be common catalysts

We still expect the acoustic upgrades at Apple and China smartphone camp—on which we could see more visibility in late 1Q16—to be common catalysts for acoustic players, especially for AAC and GoerTek in 2016-17. For the medium to long term, we will closely monitor Luxshare's progress in acoustic as the competition landscape changes.

Luxshare TP up, GoerTek TP down, and AAC unchanged

Luxshare (OUTPERFORM, TP Rmb47.2): We raise 2015-17E net income by 1-6% for higher CE revenues, but 2016/17E EPS are diluted by 11% for the placement. New TP of Rmb47.2 (vs. old Rmb37.4) is now based on Luxshare's historical average NTM P/E of 31.1x (from sector average P/E) and 2017E EPS of Rmb1.52.

GoerTek (OUTPERFORM, TP Rmb40.8): We cut 2015-17E EPS by 1-3% for near-term headwinds and a slight share loss at EarPods. New TP of Rmb40.8 (vs. old Rmb41.8) is still based on 27.5x historical average P/E. However, we believe our key thesis, the VR and acoustic cycles, remains unchanged and thus maintain our OUTPERFORM rating.

AAC (NEUTRAL, TP HK$56.9): We see very limited impact, if any, on AAC in the China smartphone component side, and maintain our estimates and NEUTRAL rating.

Valuation metrics Rating TP Up/dn EPS change EPS growth Div. yld ROE P/B Company Ticker (prev. Price chg to TP Year (%) EPS (%) P/E (x) (%) (%) (x)

rating) Local Target (%) (%) T T+1 T+2 T+1 T+2 T+1 T+2 T+1 T+2 T+1 T+1 T+1

Luxshare 002475.SZ O (O) 34.45 47.20 (37.40) 26 37 12/15 1.3 2.2 0.82 1.21 2 48 42.2 28.6 0.3 20.2 7.8 GeorTek 002241.SZ O (O) 31.40 40.80 (41.80) (2.4) 30 12/15 (1.0) (1.4) 0.89 1.17 (18) 31 35.1 26.8 0.3 15.3 5.0 AAC 2018.HK N 53.05 56.90 0 7 12/15 0 0 2.49 2.89 32 16 17.6 15.2 2.3 30.5 4.9

Note: O = OUTPERFORM, N = NEUTRAL, U = UNDERPERFORM, Source: Company data, Credit Suisse estimates

Extract from the Asian Daily, 8 December 2015

10 December 2015

Jump-Start 24

Taiwan Components Sector --------------------------------------------------------------------------------- Asia marketing feedback Pauline Chen / Research Analyst / 886 2 2715 6323 / pauline.chen@credit-suisse.com

● We summarise the key feedback after meeting ~70 investors in Asia last week. Casing remains our preferred sector. We think investors misunderstood unibody casing versus unibody process. Catcher remains our top buy idea, on share gains and valuation support. We would buy Casetek on weakness, but not for iPhone.

● Buying interests picking up on Largan. We see increasing buying interests from long-only on Largan, given the expectation for dual camera in 5.5" iPhone 7. Some investors stay sideways on near-term negative headline newsflow from muted monthly sales and competitors' aggressive capacity expansion plans.

● PCB regaining interests. Kinsus appeared to draw most attention, on strong Nov sales, and its expansion plan into SiP and FPC. Investors also asked if better-than-expected PC demand will help Unimicron and NYPCB to turn around. It appeared that a US top smartphone brand has asked several Taiwan companies to add capacity in FPC.

● The iPhone supply chain. Investors believed weaker iPhone 6s mostly priced in, and were willing to focus on iPhone 7 spec upgrade in casing, acoustic, camera module, Type-C and fingerprint recognition.

Valuation metrics Company Ticker Rating Price Year P/E (x) P/B (x)

Local Target T T+1 T+2 T+1

Catcher 2474.TW O 317.50 430.00 12/14 10.1 10.4 2.3 Casetek 5264.TW O 166.00 196.00 12/14 11.1 10.5 2.0 FTC 2354.TW N 72.90 88.00 12/14 8.3 8.8 1.2 Delta 2308.TW O 160.00 196.00 12/14 22.7 19.6 5.1 Lite-on Tech 2301.TW N 33.80 37.00 12/14 11.6 10.0 1.1 Chicony 2385.TW N 73.90 84.00 12/14 13.5 11.5 2.8 Largan 3008.TW N 2,530 2,800 12/14 14.8 14.1 6.1 Merry 2439.TW N 70.90 65.00 12/14 19.6 13.7 2.2 Kinsus 3189.TW N 67.00 77.00 12/14 11.1 10.1 1.1 Unimicron 3037.TW N 14.95 17.00 12/14 n.m. 42.9 0.5 NYPCB 8046.TW N 34.20 32.00 12/14 32.6 25.0 0.6 Tripod 3044.TW N 57.00 60.00 12/14 11.3 10.8 1.1 TOPOINT 8021.TW O 24.10 34.00 12/14 10.7 9.3 0.9

Note: O = OUTPERFORM, N = NEUTRAL, U = UNDERPERFORM Source: Company data, Credit Suisse estimates

Casing: Becoming the dead money?

Casing remains our preferred sector. We believe investors still mix up unibody casing (one piece of casing) with unibody process (to simplify the manufacturing process; see our full report on Asia casing sector in November 2014). Investors also worried about Catcher's outlook, as they expect (1) new 4" iPhone to cannibalise 4.7" (Catcher only makes 4.7"), and (2) increased competition from Casetek in iPhone. We believe Catcher should still be better off, because (1) Foxconn group, without capacity expansion for years, should allocate its casing capacity for 4", and (2) smaller suppliers might see fewer order cuts in the downturn, due to its top customer's diversification strategy. On Casetek, we don't expect it to provide casing for iPhone 7 in 2016, and any order wins in legacy models might come at the expense of margins.

Largan: What to do with the stock?

We see increasing buying interest in the stock, if dual camera takes off from 2H16. Our base case assumes 5.5" iPhone 7 will likely feature asymmetric dual camera and 4.7" will likely add OIS. However, we believe dual camera is a mixed blessing for Largan. On the one hand, it is earning accretive (generating lower revenue dollar but higher profit dollar per device). On the other hand, major camera's spec upgrade might be capped as most features can be improved via the second camera in an ideal scenario (which might not happen in the next year or two). We believe Kantatsu's (unlisted) aggressive capacity is eyeing for dual camera opportunity and not entirely at the expense of Largan. We believe Sunny Optical is using bundling sales (lens +module) to gain value share in China. Nevertheless, we expect near-term newsflow on Largan to remain negative, given street estimate cuts.

Delta: How to sustain valuation premium on OPM miss?

Investors wonder if Delta can sustain its valuation premium at high-teens, if there is another OPM miss. Investors were concerned most about increased competition in China IA. Despite the near-term OPM downside risk to street estimates, we maintain our positive view on the stock, as Delta is one of the best positioned tech companies to capture growing demand for modularised sub-system. We see near-term share price support at NT$150 (the offering price of the rights issue), and believe it will need earnings-accretive M&A for the stock to outperform.

PCB: Sign of life?

The PCB sector regained some traction in this trip. Kinsus appeared to draw most attention, on strong Nov sales (thanks to China smartphone rush orders, for one month only), and its expansion plan into SiP and FPC. Investors also asked if PC restocking (or decelerating unit decline in 2016E) will help Unimicron and NYPCB to turn around. FPC is likely to see more negative newsflow, given that (1) iPhone momentum already peaked in Oct; (2) it appeared that the top US smartphone brand has asked several companies, i.e., Compeq, Kinsus and Luxshare, to add capacity in FPC, though Taiwan supply chain believes it's likely due to growing demand for FPC and share gains from Korean suppliers; and (3) likely no FPC required for integrated fingerprint recognition in 2016 models.

The iPhone supply chain

Investors we met either believed there are no iPhone order cuts, or the risk has been priced in. We believe that investors underestimate the negative mix changes in iPhone which should lead to a deeper QoQ revenue decline in 1Q16E. Separately, investors were interested in iPhone 7 spec upgrade where we expect new spec likely to include stronger casing, water proof casing/receiver, improved speaker box, dual camera in 5.5", OIS in 4.7", SIP in front camera, type-c compatible charging, and an integrated fingerprint recognition.

Extract from the Asian Daily, 8 December 2015

10 December 2015

Jump-Start 25

India Consumer Sector ---------------------------------------------------------------------------------------- New report: GST panel recommendations—major positive for FMCG/paints; negative for cigarettes Arnab Mitra / Research Analyst / 91 22 6777 3806 / arnab.mitra@credit-suisse.com Rohit Kadam, CFA / Research Analyst / 91 22 6777 3824 / rohit.kadam@credit-suisse.com

● The goods and services tax (GST) panel has submitted its recommendations to the government. While the GST council will take the final call, this could be a good indication on the final rates Click here.

● The panel has recommended three slabs: (1) Standard rate (17-19%), (2) low rate for essential goods (12%), and (3) demerit (40%, tobacco, luxury). Cigarettes will have separate specific excise with GST likely replacing state VAT.

● Categories in home and personal care, paints, and appliances could see a fall in indirect taxation from 24-25% to 17-19%, which is a huge gain. Companies with pricing power should see margin gains while others should see a volume pick.

● Cigarettes currently have an average VAT of ~25%, which could move up to 40%, though this is not very clear at this stage given the specific excise which continues. Branded jewellery could also see an adverse impact if GST is at ~4%, as it increases the competitiveness of the unorganized industry.

Figure 1: Recommendations of the GST panel – Standard rate recommended between 17-19% Precious Low Standard High/ Demerit rate on

RNR* metals^ rate rate non-GST excise

Preferred 15%

2%

12%

16.9%

40% 4% 17.3%

6% 17.7%

Alternative 15%

2%

12%

18.0%

40% 4% 18.4%

6% 18.9%

Source: Company data, Credit Suisse estimates. *Revenue neutral rate. ^Rates used for calculations and not recommended

GST panel submits its recommendations, GST council will take the final call

The GST panel headed by the Chief Economic Advisor has submitted its recommendations. The GST council, will take a final call on these recommendations, and hence there can be changes. However, this is a significant indication of what the final GST rates may look like. The GST bill is in parliament, and even if it is cleared in the current session the likely earliest implementation would be by 2H FY17.

Panel recommends three slabs—standard slab at ~18% lower than market expectations; recommends not having interstate tax

The GST panel has recommended two main slabs for GST – a low slab at 12% for essential goods and services and a standard rate of 17-19% where most products would fall in. Besides, there will be a slab for demerit/luxury goods at 40%. No slab has been recommended for precious metals, but the panel has used a range of 2-6% GST on them to compute the standard rates. Panel also highlights that current taxation on precious metals is on the lower side.

Home and personal care, select food products, paints and appliances could see a significant fall in indirect tax rates: With the standard rate recommended at 17-19%, all normal products (excl. demerit goods) taxed at above this rate will see a reduction in the

indirect taxation. Home and personal care products like detergents, soap, toothpaste, skin creams, and shampoos have a 24-25% rate of indirect tax currently and could see a significant fall in taxation if the standard slab is at 17-19%. Paints and appliances attract similar indirect taxation of 24-25% and would also see a reduction.

Cigarettes and branded jewellery to be negatively impacted: While excise duty on cigarettes should remain, a GST rate of 40% could replace the average 25% VAT rate imposed by the sates. Branded jewellery currently has no excise duty and has a 1% state VAT. The panel has used a range of 2-6% for jewellery for calculating standard rates. The 2-6% range if implemented will likely make the unorganised sector more competitive.

Figure 2: HPC, paints and appliances will see lower taxation with standard rate of 17-19%; jewellery/apparel could see an increase

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Pers

onal

care

,de

terg

ent

Pain

ts

Appl

ainc

es

QSR

Serv

ices

Appa

rel

Excise + VAT (%)

Low rate: 12%

Standard rate: 17-19%

Source: Company data, Credit Suisse estimates.

Figure 3: Likely GST impact on companies Category GST impact if panel recommendations are accepted

FMCG – excise paying

HUL, Colgate, GSK – Positive; Current rate paid is ~24-25% including excise VAT and entry taxes. GST at 17-19% to be a significant reduction.

FMCG – excise exempt

Dabur, Emami, Marico, GCPL – Marginal positive; Excise exemptions will continue till sunset, no gain or loss. Service tax offset will be fully available.

Cigarette ITC – Negative; GST of 40% on demerit goods could replace the VAT which is currently at 25%. Huge negative on the back of 4 years of taxation increase, more clarity needed whether the entire 40% demerit rate will be SGST as excise is separate.

Jewellery Titan – Negative; GST rate of 2-6% used by the panel in their calculations as against current rate of 1%, if implemented, will make unorganized sector more competitive

Apparel/Services Page industries – Negative; Total indirect taxation is ~7% now, can jump to 12-17%

QSR Jubilant Foodworks – Neutral; Current indirect taxation is ~18% and hence there will be almost no change

Home-improvement /Appliances

Asian Paints, Havells – Positive; Current rate paid is ~24-25% including excise VAT and entry taxes. GST at 17-19% will be a significant reduction and will be likely passed on to consumers. This can spur demand and share gain from unorganized sector.

Source: Company data, Credit Suisse estimates.

Extract from the Asian Daily, 7 December 2015

10 December 2015

Jump-Start 26

Philippines Consumer Sector ------------------------ Initiating Coverage with OVERWEIGHT New report: Value creating growth Alvin Arogo / Research Analyst / 63 2 858 7716 / alvinjoseph.arogo@credit-suisse.com Kathi Go / Research Analyst / 63 2 858 7756 / kathi.go@credit-suisse.com Sofia Cabral / Research Analyst / 63 2 858 7757 / sofia.cabral@credit-suisse.com

● We initiate coverage of the Philippines Consumer sector with an OVERWEIGHT stance. We have a positive fundamental view as we remain positive on the Philippines' growth prospects, key demographic metrics, and favourable position in the S-curve for consumption. Full report.

● Since earnings can grow without creating shareholder value, we believe proper thinking on valuation requires dwelling first on incremental returns. We utilise a stylised model that looks at P/Es using ROIC and earnings growth as inputs.

● Catalysts for valuation premium: (1) High conversion rate of GDP growth to earnings growth—domestic private consumption expenditure is consistently around 70% of GDP; bottom-up data supportive. (2) Scarcity premium—pure consumer companies are a minority in terms of representation in the market index. (3) Generally higher returns than market.

● Initiate with OUTPERFORM rating on URC and JFC; NEUTRAL rating on DNL and RRHI. Maintain OUTPERFORM on SSI and upgrade EMP to NEUTRAL from Underperform.

Figure 1: Ratio of URC and JFC earnings growth to nominal GDP growth

1.3

5.1

3.0

1.2

2.0 1.9

-

1.0

2.0

3.0

4.0

5.0

6.0

2012A 2013A 2014A 2015E 2016E 2017E Source: Credit Suisse estimates.

Macro environment remains favourable

Our economist remains positive on the Philippines' growth prospects in 2016 and continues to see private consumption underpinning growth in the coming quarters. 3Q15 GDP grew at 6.0% YoY from 5.8% YoY in 2Q15. Our economist also believes that a key difference between the Philippines and other ASEAN countries is that it has the policy room to boost growth and is less exposed to China and the commodity supercycle. Among the ASEAN-6 countries, the Philippines has the second-highest population level at 101.8 mn. We also note that the population growth rate of 1.7% p.a. is higher than the Asian growth rate of 1% p.a. and old age dependency ratio of 6.5 is the lowest among the ASEAN-6. A move towards GDP per capita of broadly US$8,000 to 10,000 typically marked a point of accelerating spending on discretionary products. The Philippines would be close to the US$3,000 GDP per capita over 2015-17.

Valuation: Mind the returns

A company can grow its earnings per share without creating shareholder value. In our view, the proper thinking about valuation requires dwelling first on the incremental return on investment and only later considering the impact of growth. We utilise a stylised model that looks at P/Es given different scenarios for ROIC and earnings growth. From January 2014 to current, the Philippines consumer sector traded at a P/E range of 24.2x to 34.2x. This is generally within the sector's past five-year forward P/E average plus one and two standard deviation levels of 25.9x and 30.0x, respectively. The past-five year average was 21.8x. Catalysts for valuation premium

From a top-down perspective, the consumer sector offers strong exposure to the total economy of the Philippines as domestic private consumption expenditure is consistently around 70% of GDP. Bottom-up data supports the top-down view. Even though the Philippine economy is consistently driven by private consumption, we note that pure consumer companies are a minority in terms of representation in the market index. We believe that this scarcity of consumer sector exposure in the market will support premium valuations. The sector's returns are significantly above the market. In our view, this trend will likely continue and is one of the main reasons why consumer companies will trade at a premium compared to the PSEi. Top picks—URC, JFC, SSI

We initiate coverage with OUTPERFORM ratings on URC (leading snackfoods, pursuing a higher price point) and JFC (dominant QSR, supportive macro to enhance GPM). We initiate with NEUTRAL ratings on DNL (high cost pass-through but opportunities priced in) and RRHI (broad retailing exposure but higher SSSG a must). We maintain OUTPERFORM on SSI (value even under distressed assumptions) and upgrade EMP to NEUTRAL (negatives priced in) from Underperform.

Figure 2: CS Philippines consumer coverage—target P/E summary Reuters CS Target Up/dwn 16E 16-17E 16-17E ticker rating price (P) pot. (%) Tgt P/E ROIC EPS gr%

JFC.PS O 261.90 28 41 20.5 20.8 URC.PS O 246.60 33 37 21.9 15.7 DNL.PS N 10.20 10 28 17.5 15.3 EMP.PS N 9.90 8 22 16.7 10.7 RRHI.PS N 74.40 8 21 13.9 15.4 SSI.PS O 6.50 47 15 11.3 35.9

Source: Company data, Credit Suisse estimates.

Valuation metrics Rating TP Up/dn Div. yld ROE P/B Company Ticker (prev. Price Chg to TP Year EPS Chg(%) EPS EPS grth (%) P/E (x) (%) (%) (x)

rating) Local Target (%) (%) T T+1 T+2 T+1 T+2 T+1 T+2 T+1 T+2 T+1 T+1 T+1

Jollibee JFC.PS O (NA) 205.00 261.90 (NA) 28 12/14 5.14 6.39 4 24 39.9 32.1 0.9 18.7 6.9 Universal Robina URC.PS O (NA) 185.30 246.60 (NA) 33 09/14 6.66 7.74 15 16 27.8 23.9 1.7 20.5 5.4 D&L Industries DNL.PS N (NA) 9.30 10.20 (NA) 10 12/14 0.31 0.36 28 16 29.5 25.5 0.8 19.2 5.3 Emperador EMP.PS N (U) 9.20 9.90 (9.00) 10 8 12/14 0.0 2.5 0.40 0.45 (2) 12 22.8 20.4 1.6 13.4 2.9 Robinsons Retail RRHI.PS N (NA) 68.85 74.40 (NA) 8 12/14 3.04 3.54 17 17 22.7 19.4 0.7 10.1 2.2 SSI Group SSI.PS O (O) 4.43 6.50 (12.45) (48) 47 12/14 (25) (23) 0.30 0.43 (27) 42 14.6 10.3 — 10.6 1.5

Note: O = OUTPERFORM, N = NEUTRAL, U = UNDERPERFORM, Source: Company data, Credit Suisse estimates

Extract from the Asian Daily, 8 December 2015

10 December 2015

Jump-Start 27

Indonesia Cement Sector -------------------------------------------------- Maintain OVERWEIGHT New report: Cementing the growth Ella Nusantoro / Research Analyst / 62 21 255 37917 / ella.nusantoro@credit-suisse.com Christy Halim

● With the nomenclature issue behind us, we have seen a faster government spending in 3Q15, and hence we witnessed a pick up in cement demand from the month of August onwards.

● Thus, we are expecting cement demand to grow by 7% next year and 10% going forward due to the implementation of government spending program and rising GDP growth to 5.2% next year. We saw that heightened competition has led to pricing pressure, which we estimate to be only 4% next year after a flat ASP this year.

● With lower costs of energy stemming from lower coal and electricity prices, we view that margin expansion is possible next year. However, given that higher depreciation has occured on the back of new plants operating next year, net-net we view a flat margin conservatively.

● Our new TPs for Semen Indonesia & Indocement are based on a five-year average fwd EV/EBITDA band, as we arrive at Rp16,000 for Semen (10.7x) and Rp21,600 for Indocement (9.9x). We continue to like Semen Indonesia within the sector and maintain our OP rating on the stock. We have a N rating on Indocement, as its valuation is more demanding than its peers. Full report.

Figure 1: Domestic cement consumption seen a pick up starting August

4.64 4.52

4.91

4.52

5.19 5.16

3.76

4.66

5.63

5.76 5.79

5.37

4.92

4.33

4.71 4.62

4.89 5.03

3.42

5.49 5.72

6.37

-50%

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-10%

10%

30%

50%

70%

3.00

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4.00

4.50

5.00

5.50

6.00

6.50

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4

Feb-1

4

Mar-1

4

Apr-1

4

May-1

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Jun-1

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Jul-1

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Aug-1

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Sep-1

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Oct-1

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Domestic cement consumption (mtpa) MoM growth (RHS)

Source: Indonesia Cement Association (ASI)

Goverment is spending

Disappointment in the cement sales volume this year is largely due to the delay in government spending as a result of nomenclature, hence delaying the disbursement for government projects, coupled with the still low commodity prices which hampered economic growth particularly in the resource-rich regions such as Kalimantan and Sumatra.

With the nomenclature issue behind us, we have seen a faster government spending in 3Q15, evident with the improving economic growth—hence, we saw a pick-up in cement demand from the month of August onwards. For example, in the Ministry of Public Works budget, as at end-Jun 15, it had only disbursed 16% of the total FY15 budget of Rp118.5 tn, however, by the end of Oct 15, it has disbursed 52% of the total. Hence, with the expectation of a realistic 85% disbursement until the end of this year, the government is targetting a

more realistic budget for next year of Rp103.8 tn (-12% YoY). Meanwhile, for the total government infrastructure spending, budget is set at Rp314 tn for next year, up 8% YoY. This we believe will continue to boost cement consumption.

Stimulus package to help demand recovery

We are expecting cement demand to grow by 7% next year and 10% going forward, after a flat growth this year. This is on the back of the implementation on government spending program and rising GDP growth to 5.2% next year (from 4.6% this year). While we view that our growth estimate is not excessive, we saw that the heightened competition has led to pricing pressure, which we estimate to be only 4% next year after a flat ASP this year. The lower energy cost stemming from lower coal prices as well as electricity tariff cut for industrial users would lead to an improved margin on the conservative side. We see that the sector is moving to a positive direction.

Lower cost expected next year

With lower costs of energy stemming from lower coal and electricity prices, we view that margin expansion is possible next year. However, given that higher depreciation has occured on the back of the new plants operating next year, net-net we view a flat margin conservatively. Our sensitivity analysis suggests that assuming everything else remaining similar, for every 1% change in volume growth, it will impact Semen Indonesia's net profit by 0.9%, and Indocement's by 0.7%. And for every 1% change in ASP increase, it will impact Semen Indonesia's net profit by 3.6%, and Indocement's by 2.8%.

We continue to like the sector

Our new TPs for Semen Indonesia & Indocement are based on a five-year average forward EV/EBITDA band, as we arrive at Rp16,000 (from Rp16,200) for Semen Indonesia (10.7x) and Rp21,600 (from Rp22,000) for Indocement (9.9x). We view that the industry is a multi-year growth story as Indonesia's infrastructure is gearing up and demand for cement will continue to rise. We view that the stocks have priced-in the fear of excess capacity as we are getting more positive on the progress of govt infrastructure projects with various stimulus packages that the government announced since 9 September.

We continue to like Semen Indonesia within the sector and maintain our OUTPERFORM rating on the stock. The diverse plant location has enabled the company to continue to benefit from being closer to its niche market. We maintain our NEUTRAL rating on Indocement, as its valuation is more demanding than its peers, while its concentration in the West Java market—which is the most competitive market—might not be an advantage to the company despite it being the leader.

Figure 2: Indonesia cement—current valuations Ticker Company Price Target Rtg Mkt cap EPS P/E (x) EV/EBITDA EV/T (US$) P/B (x) ROE (%)

l.c l.c US$ mn CAGR 15-17 15E 16E 15E 16E 15E 16E 15E 16E 15E 16E

SMGR.JK Semen Indonesia 11,175 16,000 O 4,810 14.1% 14.2 12.5 8.6 7.5 154 132 2.5 2.2 17.9% 17.9% INTP.JK Indocement 19,775 21,600 N 5,283 9.7% 15.7 14.6 10.2 9.0 230 188 3.0 2.7 19.0% 18.4% Weighted average 11.8% 15.0 13.6 9.4 8.3 194 161 2.8 2.5 18.5% 18.1%

*Share price as of 2 December 2015; Source: Company data, Credit Suisse estimates

Extract from the Asian Daily, 4 December 2015

10 December 2015

Jump-Start 28

PTT -------------------------------------------------------------------------------- Downgrade to NEUTRAL Higher regulatory risks from revisions of Energy Act EPS: ◄► TP: ▼ Paworamon (Poom) Suvarnatemee, CFA / Research Analyst / 66 2 614 6210 / paworamon.suvarnatemee@credit-suisse.com Wattana Punyawattanakul / Research Analyst / 66 2 614 6215 / wattana.punyawattanakul@credit-suisse.com

● In the cabinet meeting on Tuesday, the government decided to take more time to look for compromise solutions in the revised Energy Act. The cabinet's decision not only results in policy uncertainty but also raises the risks of introducing more protectionist policies in the sector.

● The government has asked the Council of State to look into incorporating 26 differences into the Energy Act for resubmission to the cabinet and, in a later stage, National Legislative Assembly (NLA) for approval. The key difference of our concern is the set up of a new National Oil Co. (NoC), a big step backward in our view.

● Downside risks are rising for the industry especially for the upstream business which involves both PTT and PTTEP. The role and timing of the proposed NOC is unclear. We do not believe NOC is the solution but it will add inefficiency to policy decisions.

● We downgrade PTT to NEUTRAL (from Outperform) and cut our TP to Bt257 (from Bt321) by lowering value of its listed affiliates and cut multiples to the level during military-led government in 2006-07.

Click here for detailed financials

Energy policies: One step forward, two steps backward

Despite its successful moves to correct the energy price distortion through price reform in 2014, the Ministry of Energy (MoE) has failed to push through its own version of the Energy Act which limited the changes only to the upstream part of oil and gas business in the cabinet meeting on Tuesday 8 December. Instead, the cabinet has asked the Council of State to look into incorporating 26 differences against the two proposed versions of the National Legislative Assembly (NLA) and NGOs into the Energy Act for resubmission for approval. MoE's role will then be limited only to provide the pros and cons of the changes to the Council of State.

More protectionist tone

Both versions of the draft law (proposed by the NGOs and by a commission set up under the NLA) cover changes in the entire oil and gas chain including the management of petroleum resources. The tone of both proposals is less business-friendly and move towards more nationalistic direction. According to the cabinet's decision today, a 35-member commission (normally 15 members) consisted of representatives from various groups including NGOs will be set up to review the changes in the approval process in the NLA.

Setting up a new NoC: Higher probability

Both drafts propose the set up an NoC of whose details are unclear. The role could simply be a regulator (carving out power from the MoE) as proposed by NLA or a more damaging scenario as an operator (competing with PTT and PTTEP with government funding) as proposed by NGO. We doubt that a new NoC would be a solution to the problem but instead would add inefficiency to policy decisions. While the outcome remains unclear, the incorporation of the changes into the Energy Act would certainly raise the risks to the sector.

Policy uncertainty

The two key pending decisions in the sector are the launch of 21st round of petroleum concessions and the renewal of expiring concessions in the Gulf of Thailand. The cabinet's decision on Tuesday would result in further delay to both issues. Revisions of the Energy Act in broader scheme (than the version proposed by the Energy Ministry) would further delay and create uncertainties in the process. Impacts on PTTEP would be risks on its volume beyond 2022 at Bongkot field (20% of its volume, Bt9/share in our NAV) and the lack of domestic growth (delay of future bidding). If the junta (which has absolute control of the government) fails to push ahead with the issues, we doubt that any elected government will. Impacts on PTT would be on its pipeline throughput and feedstock to its Gas Separation Plants (GSP) and PTTGC.

Downgrade PTT to NEUTRAL (from Outperform)

PTT's valuation historically reacted to political uncertainties as witnessed in 2006 when the delisting case was trialled in court. Negative news flow and uncertainties from the new law would add to pressure from its already weak operating earnings as a result of low oil prices. We see limited positive catalysts to its share price and hence downgrade PTT to NEUTRAL. Our TP is cut to Bt257 based on valuation during the military-led government in 2006-07.

Figure 1: Implied EV/EBITDA of PTT's non-listed businesses— historically reacted to political uncertainty during 2006-07

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8

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11

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r-05

Sep-

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b-06

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Oct

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(x)

EV/EBITDA non-listed +1SD -1SD Average Source: Thomson Reuters, Company data, Credit Suisse estimates.

Extract from the Asian Daily, 9 December 2015

Bbg/RIC PTT TB / PTT.BK Rating (prev. rating) N (O) Shares outstanding (mn) 2,856.30 Daily trad vol - 6m avg (mn) 6.7 Daily trad val - 6m avg (US$ mn) 53.1 Free float (%) 34.0 Major shareholders Ministry of Finance

(51%)

Price (08 Dec 15 , Bt) 241.00 TP (prev. TP Bt) 257.00 (321.00) Est. pot. % chg. to TP 7 52-wk range (Bt) 378.0 - 240.0 Mkt cap (Bt/US$ bn) 688.4/ 19.2

Performance 1M 3M 12M

Absolute (%) (18.6) (8.4) (34.3) Relative (%) (11.0) (2.0) (17.3)

Year 12/13A 12/14A 12/15E 12/16E 12/17E

Revenue (Bt mn) 2,842,408 2,834,732 2,081,835 2,307,376 2,586,092 EBITDA (Bt mn) 231,976 219,988 296,530 313,224 338,459 Net profit (Bt mn) 93,091 55,795 29,362 85,379 94,732 EPS (CS adj. Bt) 32.6 19.5 10.3 29.9 33.2 - Change from prev. EPS (%) n.a. n.a. 0 0 0 - Consensus EPS (Bt) n.a. n.a. 26.0 30.6 32.8 EPS growth (%) (10.4) (40.1) (47.4) 190.8 11.0 P/E (x) 7.4 12.3 23.4 8.1 7.3 Dividend yield (%) 5.4 4.6 1.9 5.0 5.5 EV/EBITDA (x) 4.4 5.0 3.7 3.2 2.6 P/B (x) 1.0 1.0 1.0 0.9 0.8 ROE (%) 14.5 8.2 4.3 11.9 12.1 Net debt(cash)/equity (%) 39.2 39.2 38.7 27.7 15.9

Note 1: ORD/ADR=2.00. Note 2: PTT Public Company Limited is a Thailand-based company engaged in the gas and petroleum businesses. The company mainly operates in supply, procurement, transport and distribution of natural gas vehicle (NGV), petroleum products and lubricating oil.

10 December 2015

Jump-Start 29

Shanghai Industrial Holdings ----------------------- Initiating Coverage with OUTPERFORM New report: Deep discount with multiple catalysts ahead Baoying Zhai / Research Analyst / 852 2101 7135 / baoying.zhai@credit-suisse.com Kenneth Fong / Research Analyst / 852 2101 6395 / kenneth.kc.fong@credit-suisse.com

● We initiate on Shanghai Industrial with an OUTPERFORM rating and a target price of HK$26.9, based on a 40% NAV discount. A well-balanced portfolio with upsides from water, property and asset restructuring, we forecast SIHL's core earnings to show a 12% CAGR over 2015-17E, driven by the strong growth of water and a gradually stabilising and improving property segment.

● Catalysts ahead include further potential asset injections from the parent company and dual-listing of SIIC Environment which will help SIHL's water operations achieve value crystallisation. For property, besides being restructured from a drag to a driver with legacy issues largely resolved, we expect further land bank repositioning; asset acquisitions, post placement; and future integration of two property arms to help create value.

● A 54% NAV discount (2 s.d. below average) and 4.3% dividend yield make the stock attractive and we think the upcoming catalysts have not been priced in. Earnings visibility improvement and further restructurings should help narrow NAV discount. Click here.

Click here for detailed financials

A well-balanced portfolio. Shanghai Industrial (SIHL) is a government-backed conglomerate in China, 57% of which is owned by Shanghai Industrial Investment Company (SIIC), a wholly-owned subsidiary of Shanghai SASAC. We group SIHL's business into: (1) steady cash cows consisting of infrastructure (ex-water services) and consumer products, and (2) growth drivers viz. water and property. We think this is an ideal business mix in terms of both growth and defensiveness—the steady cash cows (toll roads and consumer products) provide stable earnings to support the fast-growing water business and smoothen the volatile property segment.

Upsides from water, property, and asset restructuring. We believe SIHL's growth arises from fast expansion (33% CAGR over 2015-17E) of the water business and gradual improvement (21% CAGR) of the volatile property segment. Further asset injections/restructuring within water/property will help unlock upsides. For water, SIIC Environment is the main platform—we expect water assets (i.e., General Water and Longjiang) injection before its dual-listing in HKex next year to help SIHL achieve value crystallisation in water operations. On the property side, with legacy issues largely resolved and loosening property policies and ongoing restructurings, we expect property to be re-shaped from a drag to another driver for SIHL. Major property restructuring includes continuous repositioning of land banks to target regions, SID's share placement to make acquisitions, and the future integration of two property arms.

Deep valuation discount with solid yield support. SIHL is trading at a 54% NAV discount, 2 s.d. below its historical average, since 2009—we think the deep discount and the 4-5% dividend yields make SIHL's valuation attractive. In addition, the upcoming positive restructuring catalysts have not been priced in. Meanwhile, our market-based NAV suggests unlisted assets are free at the current trading level. A 7% recurring ROE at a mere 0.6x P/B also sounds undemanding.

We reckon that cheap valuation is not new for SIHL, but we believe this time it could be different thanks to the following drivers that will help narrow the discount: (1) earnings visibility improvement with property legacy issues largely resolved, (2) unlocking of value through SID's high-valuation share placement, and (3) further business restructuring and asset injections that will help create value, which has not been priced in.

Our target price of HK$26.9 is based on a 40% discount to NAV, in line with its trading average since 2011, which we think is not demanding, given the above-mentioned positive catalysts and solid yields.

Figure 1: We expect upside options to come from further asset injections and restructuring, which have not been priced in

Source: Company data, Credit Suisse estimates

Extract from the Asian Daily, 7 December 2015

Bbg/RIC 363 HK / 0363.HK Rating (prev. rating) O (NA) Shares outstanding (mn) 1,085.85 Daily trad vol - 6m avg (mn) 2.3 Daily trad val - 6m avg (US$ mn) 6.1 Free float (%) 42.5 Major shareholders SIIC (57%)

Price (03 Dec 15 , HK$) 20.60 TP (prev. TP HK$) 26.90 (NA) Est. pot. % chg. to TP 31 52-wk range (HK$) 32.7 - 17.1 Mkt cap (HK$/US$ mn) 22,368.5/ 2,886.2

Performance 1M 3M 12M

Absolute (%) (0.2) 17.2 (12.3) Relative (%) 1.2 7.4 (8.2)

Year 12/13A 12/14A 12/15E 12/16E 12/17E

EBITDA (HK$ bn) 6.0 7.4 7.8 8.7 9.5 Net profit (HK$ bn) 2.7 3.1 2.7 2.8 3.0 EPS (CS adj. HK$) 2.50 2.83 2.51 2.53 2.77 Core EPS (HK$) 2.50 2.83 2.51 2.53 2.77 - Change from prev. EPS (%) n.a. n.a. - Consensus EPS (HK$) n.a. n.a. 2.38 2.62 2.87 EPS growth (%) (21.5) 13.4 (11.4) 0.8 9.6 P/E (x) 8.2 7.3 8.2 8.1 7.4 Core P/E (x) 8.2 7.3 8.2 8.1 7.4 Dividend yield (%) 4.2 4.4 4.3 4.3 4.7 EV/EBITDA (x) 5.5 5.6 5.4 4.9 4.6 P/B (x) 0.6 0.6 0.6 0.5 0.5 ROE (%) 8.0 8.7 7.3 6.8 7.1 Net debt(cash)/equity (%) 20.3 36.4 33.0 33.3 32.2

Note 1: ORD/ADR=10.00. Note 2: SIHL is a Shanghai-based conglomerate with business spreading across infrastructure, property and consumer products.

10 December 2015

Jump-Start 30

Siliconware Precision ------------------------------------------------------ Maintain OUTPERFORM New report: SPIL Taichung fab could jump start SiP and fan-out earnings growth EPS: ◄► TP: ◄► Randy Abrams, CFA / Research Analyst / 886 2 2715 6366 / randy.abrams@credit-suisse.com Haas Liu / Research Analyst / 886 2 2715 6365 / haas.liu@credit-suisse.com

● SPIL's fab tour showcases its advanced packaging. SPIL hosted analysts at its Taichung ZK factory, a fab purchased from Promos. SPIL detailed its capabilities on flip chip, FOWLP, SiP and 2.5D solutions both at ZK facility and advanced fab in Suzhou. Full report.

● Fan-out and SiP could drive double-digit sales/earnings growth. SPIL is qualified for mobile, networking and IoT for fan-out and qualifying SiP and targets fan-out sales ramping to US$115 mn and SiP sales to US$700 mn in 2017, a level that would bring sales to +12%/+29% and EPS to 9%/15% YoY in FY16/FY17.

● Near-term sales upside. SPIL may slightly beat our high-end expectation for a 1% QoQ decline as the company is seeing incremental orders on improving China smartphone demand and DTV. SPIL has less contribution from Apple and could see better sales in 1H as Android typically launches models ahead of Apple.

● Valuation remains reasonable. We estimate 2015/2016 EPS at NT$3.68/NT$3.85 and keep OUTPERFORM. The stock has support from 4Q15 upside potential, 1H16 high season, potential bids from ASE, potential investment from Yan Yuen and China interest.

Click here for detailed financials

SPIL's facility tour showcases its advanced packaging capability

SPIL hosted analysts at its ZK factory in Taichung on Wednesday, a large fab purchased from Promos in 2014. SPIL detailed its capabilities on advanced flip chip, fan-out packaging, system in packaging and 2.5D interposer solutions both at this ZK facility and its advanced fab in Suzhou for made in China business.

Fan-out and SiP could drive double-digit sales/earnings growth

SPIL is qualified for mobile, networking and IoT for fan-out (similar to TSMC's InFO) and qualifying SiP for IC design and non-Apple fingerprint modules. The company targets fan-out sales ramping from

US$15 mn in 2016 to US$115 mn in 2017 at 30%+ GMs and SiP sales to US$177 mn in 2016 and US$700 mn in 2017 at teens GMs, a level that would accelerate sales from our +4%/+7% to +12%/+29% in FY16/FY17 and EPS to 9%/15% YoY in '16/17, driving NT$4.61 EPS vs. our NT$4.10 in FY17 if everything materialises.

Figure 1: Fan-out forecast raised to US$2.4 bn

Source: Yole Development

Figure 2: SPIL could accelerate sales and earnings with SiP and fan-out 2015 CS 2016 CS 2017 CS Fan-Out SiP 2017 Upside

Sales 81,904 85,459 91,591 3,761 22,890 118,242

YoY Growth 4.3% 7.2% 28.9%

Gross Profit 21,059 22,363 23,834 1,203 2,747 27,784

GM % 25.7% 26.2% 26.0% 32.0% 12.0% 23.5%

Operating Profit 12,850 13,925 14,875 752 1,145 16,772

OpM % 15.7% 16.3% 16.2% 20.0% 5.0% 14.2%

Non-Op 508 415 415 0 0 415

Pretax Profit 13,358 14,341 15,291 752 1,145 17,187

Tax % 14.0% 16.0% 16.0% 16.0% 16.0% 16.0%

Net Income 11,491 12,046 12,844 632 961 14,437

EPS $3.68 $3.85 $4.10 $0.20 $0.31 $4.61

YoY Growth 4.6% 6.6% 15.3%

Shares 3,122 3,130 3,130 3,130 3,130 3,130 Source: Company data, Credit Suisse estimates

Near-term sales upside

SPIL has reached 71% of 4Q15 guidance through November for flat to down 6% QoQ and may now slightly beat our high-end expectation for a 1% QoQ decline in 4Q15. Consistent with takeaways from our US Tech Conference report that China smartphone demand is improving, SPIL is seeing incremental orders from this channel and from DTV in October. SPIL has less contribution from Apple and could see better sales in 1H as Android typically launches models ahead of Apple.

Valuation remains reasonable

We rate SPIL OUTPERFORM with a NT$52 TP based on 2.1x P/B (12.5x 2016E EPS) with the stock reasonable at 11.7x 2016E P/E and a 6.7% cash yield. The company has support from 4Q15 upside and its traditional 1H high season, which may be supplemented by the end to this year's inventory correction. The stock may also offer upside if ASE exercises a bid for more control, SPIL insiders or Yan Yuen Investment buy shares in the open market or China shows interest.

Figure 3: SPIL fan-out wafer level packaging platform and applications

Source: Company data

Extract from the Asian Daily, 10 December 2015

Bbg/RIC 2325 TT / 2325.TW Rating (prev. rating) O (O) Shares outstanding (mn) 3,116.36 Daily trad vol - 6m avg (mn) 17.2 Daily trad val - 6m avg (US$ mn) 21.5 Free float (%) 90.6 Major shareholders ASE (25.0%)

Price (09 Dec 15 , NT$) 44.60 TP (prev. TP NT$) 52.00 (52.00) Est. pot. % chg. to TP 17 52-wk range (NT$) 56.2 - 33.1 Mkt cap (NT$/US$ bn) 139.0/ 4.2

Performance 1M 3M 12M

Absolute (%) 0.5 4.4 (4.8) Relative (%) 5.2 4.9 5.0

Year 12/13A 12/14A 12/15E 12/16E 12/17E

Revenue (NT$ mn) 69,356 83,071 81,904 85,459 91,591 EBITDA (NT$ mn) 18,970 26,244 26,468 28,345 29,504 Net profit (NT$ mn) 7,684 11,731 11,491 12,046 12,844 EPS (CS adj. NT$) 2.18 3.74 3.68 3.85 4.10 - Change from prev. EPS (%) n.a. n.a. 0 0 0 - Consensus EPS (NT$) n.a. n.a. 3.57 3.68 4.03 EPS growth (%) 19.8 71.6 (1.5) 4.6 6.6 P/E (x) 20.5 11.9 12.1 11.6 10.9 Dividend yield (%) 3.7 3.7 13.5 6.5 6.9 EV/EBITDA (x) 7.5 5.5 5.4 5.0 4.7 P/B (x) 2.2 1.9 1.9 1.9 1.8 ROE (%) 12.6 17.4 16.0 16.4 16.8 Net debt(cash)/equity (%) 6.5 5.8 5.7 3.0 0.5

Note 1: ORD/ADR=5.00. Note 2: Siliconware Precision Industries Co., Ltd. provides semiconductor packaging and testing services worldwide. The company offers integrated circuit packaging and testing solutions, including design consultations, modeling and simulations, wafer bumping.

10 December 2015

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Strides Shasun Limited ------------------------------- Initiating Coverage with OUTPERFORM New report: Building blocks in place; returns to improve Chunky Shah / Research Analyst / 91 22 6777 3872 / chunky.shah@credit-suisse.com Anubhav Aggarwal / Research Analyst / 91 22 6777 3808 / anubhav.aggarwal@credit-suisse.com

● We initiate coverage on Strides with OUTPERFORM, and Rs1,720 TP. After exiting its injectable business, Strides has rebuilt itself into a geographically diversified generic company with presence across the US (15% of revenues), Africa (24%) and Australia (18%).

● Strides' transition phase and geographical expansion are largely over via acquisitions over the past two years. The US and Africa are the key growth drivers—expect a 30%+ CAGR over the next three years. In the US, Strides has built its own front-end, has a few niche products, and strengthened the pipeline through acquisitions. Africa, a difficult market to build business, commands a higher valuation.

● Key catalysts over the next twelve months are Lovaza approval (8-10% of EPS), and margin improvement over next few quarters, driven by revenue mix and backward-integration benefits.

● Strides should deliver an organic CAGR of 35%+ over FY16-18, but trades at a 10% discount to peers due to lower RoCEs. Reduction in leverage (net/debt to EBITDA of 2x by FY18) and RoCE expansion due to improving asset utilisations (8-15% by FY18) are likely to further re-rate the stock. Click here for full report.

Click here for detailed financials

Acquisitive, but low-risk approach

Post divestments Strides has transformed itself from being an Africa-dominated player to a global diversified one. The transition phase and geographical expansion are largely over through inexpensive, low-risk acquisitions over the past two years. The focus now is on increasing scale and profitability in existing markets, and we do not expect a large acquisitions, but bolt-ons, to fill the gaps.

US and Africa: The growth engines

The US and Africa are the key growth drivers for Strides; we expect them to post a 30%-plus CAGR. For the US, Strides has set up its own front-end, an R&D centre, filed niche products in the Softgel space, and acquired Shasun's pipeline. It has organically built an enviable Africa

business over the past ten years that could command premium valuation. The institutional business should get a kicker from backward integration, and a strong African franchise could help Sovaldi ramp up. Overall, Strides has a strong business model, which should generate 15-16% revenue and 18-20% EBITDA growth over the medium term.

Execution is key for acquisitions to deliver

Acquisitions form over 50% of FY17E revenue, and execution should be key for Strides, as (1) its Australian business faces regulatory and margin headwinds, (2) the Shasun acquisition requires integration of R&D, increase in filing rate, and backward integration, and (3) the India business is sub-scale and needs growth revival.

Valuation based on based on 20x Sep-17E EPS (in-line with peers). Key risks: Higher-than-expected PBS impact, failure to integrate the acquired business; delay in US filings/approvals, and an adverse business environment in Africa.

Figure 1: The US and Africa are the key growth drivers

0%

5%

10%

15%

20%

25%

30%

35%

40%

US Africa Institutional India PSAI Australia

FY16-18 revenue CAGR

Source: Company data, Credit Suisse estimates

Figure 2: Margin expansion and lower capex to lead to ROCE expansion

8%

10%

12%

14%

16%

15%

17%

19%

21%

23%

2015 2016F 2017F 2018F

RoCE improvement

EBITDA margins RoCE (RHS)

Source: Company data, Credit Suisse estimates

Figure 3: Strides trades at a discount due to lower RoCE—expect rerating with improvement in ROCEs

Torrent (19.6x PE)

Sun (21.1x PE)Glenmark (17.8x PE)

Lupin (25.2x PE)

Cipla (22.9x PE)

Strides (18.8x PE)

Cadila (21.8x)

DRL (19.1x)

IPCA (21.9x)

5%

10%

15%

20%

25%

30%

35%

40%

45%

10% 15% 20% 25% 30%ROCE

2 y

r E

PS

CA

GR

Source: Company data, Credit Suisse estimates

Extract from the Asian Daily, 10 December 2015

Bbg/RIC STR IN / STAR.BO Rating (prev. rating) O (NA) Shares outstanding (mn) 80.64 Daily trad vol - 6m avg (mn) 0.5 Daily trad val - 6m avg (US$ mn) 9.4 Free float (%) 65.6 Major shareholders Promoter- 34.4%

Price (09 Dec 15, Rs) 1,381.60 TP (prev. TP Rs) 1,720 (NA) Est. pot. % chg. to TP 24 52-wk range (Rs) 1381.6 - 826.1 Mkt cap (Rs/US$ bn) 111.4/ 1.7

Performance 1M 3M 12M

Absolute (%) 10.3 26.1 54.5 Relative (%) 14.5 28.4 64.4

Year 03/14A 03/15A 03/16E 03/17E 03/18E

Revenue (Rs mn) 13,410 11,958 32,542 44,983 52,703 EBITDA (Rs mn) 2,234 2,289 5,801 9,177 11,182 Net profit (Rs mn) 768 1,033 3,431 5,882 7,519 EPS (CS adj. Rs) 13.0 17.3 42.5 72.9 93.2 - Change from prev. EPS (%) n.a. n.a. - Consensus EPS (Rs) n.a. n.a. 43.8 72.5 87.4 EPS growth (%) n.a. 33.5 145.3 71.3 27.8 P/E (x) 106.4 79.7 32.5 19.0 14.8 Dividend yield (%) 0 0 0.7 1.2 1.6 EV/EBITDA (x) 49.5 49.5 23.8 14.9 11.9 P/B (x) 8.1 7.2 4.2 3.6 3.0 ROE (%) 7.6 9.6 18.0 20.3 22.0 Net debt(cash)/equity (%) (7.9) 15.8 98.5 80.7 57.9

Note 1: Strides is a mid-sized Pharma company, with diversified presence across the US, India, Africa, Australia and other developed markets.

10 December 2015

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NJA equities events calendar Date Co./Analyst Location Market Sector

Analyst Marketing

Dec 10 - Dec 16 Dave Dai, Edmond Huang US China Multi-sec

Dec 11 - Dec 14 Shinji Kuroda Hong Kong Japan Machinery

Dec 14 - Dec 15 Baoying Zhai/ Kenneth Fong Hong Kong China Conglomerates

Dec 14 - Dec 15 Dan Fineman Hong Kong Thailand Strategy

Dec 14 Ella Nusantoro, Laurensius Teiseran Malaysia Indonesia Multi-sec

Dec 15 Shinji Kuroda Singapore Japan Glass and Ceramics, paper

Dec 15 - Dec 18 Li Chen/ David Da / Zhao Hao / Anson Huang China China Multi-sec

Dec 15 - Dec 16 Randy Abrams/ Keon Han South Korea Taiwan Technology

Dec 16 - Dec 18 Dan Fineman Singapore Thailand Strategy

Dec 16 - Dec 18 Jahanzeb Naseer/ Ari Jahja/ Laurensius Teiseran Indonesia Indonesia Multi-sec

Dec 17 Dong Tao Taiwan Taiwan Economics

Dec 28 - Dec 30 Masashi Mori Japan Japan Consumer Staples

Jan 4 - Jan 6 Neelkanth Mishra Singapore India Strategy

Jan 5 - Jan 6 Trina Chen Hong Kong China Basic Materials & Environment

Jan 5 - Jan 6 Alvin Arogo Singapore Philippines Strategy

Jan 5 - Jan 7 Dong Tao Singapore Regional Economics

Jan 6 - Jan 8 Kenneth Fong Hong Kong Macau & Hong Kong Gaming/ Conglomerates

Jan 6 - Jan 7 Vincent Chan Singapore China Strategy

Jan 6 Dan Fineman Malaysia Thailand Strategy

Jan 7 - Jan 8 A-hyung Cho/ Gil Kim Hong Kong South Korea Multi-sec

Jan 7 - Jan 8 Bin Wang/ Michael Sohn Hong Kong China, South Korea Automobiles

Jan 7 - Jan 8 Neelkanth Mishra Hong Kong India Strategy

Jan 7 - Jan 15 Baoying Zhai, Isis Wong China Hong Kong & Macau Gaming/ Conglomerates

Jan 11 - Jan 12 Bin Wang/ Michael Sohn/ Jatin Chawla Singapore Regional Automobiles

Jan 11 - Jan 15 Colin McCallum Europe Regional Telecom

Jan 11 - Jan 15 Trina Chen US China Metals & Mining, Environmental

Jan 11 - Jan 15 Neelkanth Mishra US India Metals & Mining

Jan 11 Alvin Arogo Malaysia Philippines Strategy

Jan 13 - Jan 14 Alvin Arogo Hong Kong Philippines Strategy

Jan 13 - Jan 15 Bin Wang/ Jatin Chawla Hong Kong China, India Automobiles

Jan 13 - Jan 15 Sanjay Jain Singapore Regional Banks/Financials

Jan 14 - Jan 21 Jinsong Du US China Property

Jan 18 - Jan 22 Kevin Yin Europe China Consumer

Jan 18 - Jan 22 Jinsong Du US China Property

Jan 19 - Jan 20 Atul Sethi/ Warayut Luangmettakul Singapore Thailand Multi-sec

Jan 19 - Jan 20 Kenneth Fong/ Isis Wong Singapore Macau & Hong Kong Gaming/ Conglomerates

Jan 19 - Jan 22 Sunil Tirumalai US India Telecom

Jan 20 - Jan 21 Arnab Mitra Hong Kong India Consumer

Jan 21 Kenneth Fong/ Isis Wong Malaysia Macau & Hong Kong Gaming/ Conglomerates

Jan 25 - Jan 26 Sanjay Jain Hong Kong Regional Banks

Jan 25 - Jan 26 Atul Sethi/ Warayut Luangmettakul Hong Kong Thailand Multi-sec

10 December 2015

Jump-Start 33

Date Co./Analyst Location Market Sector

Non-Deal RoadShow

Dec 14 - Dec 15 Advanced Semiconductor Engineering Inc Hong Kong Taiwan Technology

Dec 14 - Dec 18 Sterlite Technologies US India Technology

Dec 15 Treasury Wine Hong Kong Australia/NZ Beer & Alcoholic Beverages

Dec 15 W-SCOPE Corporation Hong Kong Japan Industrials

Dec 16 Hikari Tsushin Inc Japan Japan Telecoms

Dec 17 Nidec Europe Japan Electric Components

Dec 17 Goldwind Science & Technology US China Industrials

Jan 7 Chipbond Hong Kong Taiwan Technology

Jan 12 - Jan 13 International Airlines Group Hong Kong Regional Transportation

Jan 12 Sangetsu Co., Ltd Japan Japan Consumer

Jan 13 OSG Japan Japan Industrials

Jan 14 - Jan 15 International Airlines Group Singapore Regional Transportation

Jan 25 - Jan 27 J Trust Co., Ltd. US Japan Banks/Financials

Please contact your Credit Suisse sales representatives if you have any queries.

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Credit Suisse Asian results calendar Forthcoming results (10 to 31 Dec 2015) (stocks with market cap > US$500 mn)

Net CS What we

Price profit vs EPS expect

Date of (local$) (local$ mn) Consensus (local$) in this

Results* Period Company Ctry Bberg 9 Dec Target Rating Consensus CS (%) Consensus CS results

Dec-14 (E) 2015Q3 China Res Beer CN 291 HK HK$14.82 HK$16.00 N HK$985 HK$948 (4) HK$0.41 HK$0.39 In line

Dec-15 (E) 2015Q3 Qihoo CN QIHU US US$71.05 US$77.00 O US$482 US$518 8 US$3.48 US$3.69

Dec-15 2016Q3 Prada HK 1913 HK 27.00 23.50 U Eu409 Eu408 (0) Eu0.16 Eu0.16

Dec-16 (E) 2016Q1 Gamuda MY GAM MK 4.50 6.00 O 643 662 3 0.27 0.29 In line

Dec-16 (E) 2016Q3 SapuraKencana MY SAKP MK 2.08 1.90 N 1,009 1,013 0 0.17 0.16 In line

Notes: — Credit Suisse and consensus net profits and EPS are based on full year forecasts, — This calendar excludes stocks with market cap less than US$500 mn

— The date of release for stocks listed in US are based on HK date and time, all other stocks are based on the date & time of the listed exchange

* Confirmed dates but are subject to change, (E) = estimated date

Positive surprise, Negative surprise. Source: the BLOOMBERG PROFESSIONAL™ service., Company data, Datastream, Credit Suisse estimates.

Results reported 3 Dec - 9 Dec 2015 (stocks with market cap > US$3 bn) % chg in CS % chg in

% Consensus Consensus cons. EPS CS CS EPS

Date of

Price ($) upside / Reported YoY QoQ EPS EPS EPS post pre- EPS post

Results Period Company Ctry Sector Bberg Rating Ccy 2 Dec Target downside Ccy EPS (%) (%) pre-results 2 Dec results results 2 Dec results

Dec-08 2016Q3 Astro MY Media ASTRO MK O MYR 2.80 3.70 32.1 MYR Q3 0.02 (9) (23) 0.12 0.12 (0.8) 0.12 0.12 0.0

Source: the BLOOMBERG PROFESSIONAL™ service., IBES, Credit Suisse estimates.

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Credit Suisse Valuation Summary (by country)

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Summary—valuation summary Upside Market cap Absolute Performance FYE EPS growth PE CS /con. EPS Dvd EV/ EV/ NetDebt/ COUNTRY (%) (USDbn) (%) Actual (%) (x) (%) Yld (%) ROE (%) P/BV (x) Sales (x) EBITDA (x) Equity (%) HOLT

1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1 T+1 T+2 T+1 T+2 T+1 T+1 T+1 T+2 Coverage

Australia 10 1,029 (1) (3) (1) (6) (4) Jun-15 (3) 5 10 15.2 15.7 15.0 13.7 99 94 5.3 10.9 10.9 1.6 1.6 1.7 8.8 43 42 653 China 23 4,975 (1) (3) (5) (10) (7) Dec-14 (1) 4 15 10.3 10.4 10.0 8.7 98 94 2.9 13.6 12.9 1.3 1.2 1.4 9.2 33 31 1,199 Hong Kong 21 775 (0) (3) (4) (8) (7) Dec-14 (25) 10 10 11.2 14.6 12.9 11.4 99 101 3.3 7.6 8.1 1.1 1.0 1.9 10.3 19 17 860 India 13 1,020 (0) (4) (4) (8) (9) Dec-14 7 18 20 20.2 18.8 15.9 13.5 95 95 1.9 13.7 14.8 2.5 2.2 1.8 10.9 40 37 605 Indonesia 11 213 (1) (2) (2) (15) (13) Dec-14 (0) 19 19 16.5 16.5 13.8 11.6 100 104 2.7 16.5 17.5 2.6 2.3 2.2 9.9 32 28 197 Japan 15 2,966 (1) (3) (2) 11 8 Mar-15 14 11 8 16.6 14.6 13.1 11.7 99 101 2.1 9.2 9.7 1.3 1.2 1.0 8.1 35 29 3,605 Korea 27 712 (0) (3) (4) 2 (1) Dec-14 21 11 13 12.6 10.4 9.3 8.3 92 108 1.8 9.6 9.7 0.9 0.9 0.8 5.7 25 20 651 Malaysia 2 209 (0) (1) (1) (6) (4) Dec-14 (1) 7 10 16.5 16.7 15.7 14.2 103 100 3.0 11.2 11.3 1.8 1.7 2.6 10.4 37 36 264 Pakistan 36 25 1 2 (4) 3 3 Dec-14 (3) 11 16 7.3 7.5 6.7 5.8 102 107 7.4 18.5 18.8 1.3 1.2 1.1 4.9 21 13 52 Philippines 13 156 0 (3) (3) (5) (5) Dec-14 3 17 12 19.2 18.7 16.1 14.4 99 102 2.2 13.4 14.3 2.4 2.2 2.8 11.1 44 40 102 Singapore 18 274 (0) (1) (4) (15) (14) Dec-14 2 11 7 12.0 12.7 11.7 11.1 101 104 4.4 9.2 9.8 1.1 1.1 1.0 11.0 40 40 285 Taiwan 13 531 (1) (3) (5) (12) (10) Dec-14 3 3 7 13.0 12.6 12.3 11.5 99 99 3.9 13.0 12.8 1.6 1.5 0.8 6.9 (1) (3) 615 Thailand 12 249 (1) (3) (8) (13) (17) Dec-14 6 21 15 16.7 15.7 13.1 11.4 90 96 3.5 11.9 13.2 1.8 1.7 1.4 8.3 55 47 226 Vietnam 15 13 (2) (2) (7) 4 2 Dec-14 1 38 27 22.4 22.1 16.0 12.6 102 108 1.7 18.1 22.1 3.3 3.1 3.2 14.8 46 39 28

SECTOR - NJA Automobiles & Components 20 375 (2) (3) (5) (18) (24) Dec-14 (7) 13 7 10.4 11.1 9.6 8.7 97 98 2.4 14.7 15.2 1.5 1.4 0.7 7.5 (4) (11) 167 Banks 19 1,802 (1) (2) (5) (19) (19) Dec-14 (3) (3) 9 6.1 6.2 6.2 5.6 100 96 5.2 15.3 13.9 0.9 0.8 na na na na 182 Building Materials & Construction 29 98 (2) (3) (8) (26) (25) Dec-14 (33) 12 34 11.4 16.7 14.5 10.6 87 86 2.7 8.3 8.8 1.3 1.2 1.7 9.8 68 64 126 Capital Goods 17 425 (2) (3) (9) (5) (8) Dec-14 8 27 11 21.4 19.4 14.9 13.1 96 98 1.5 7.8 9.9 1.5 1.4 0.9 13.8 46 44 622 Chemicals 23 118 (2) (4) (3) 5 2 Dec-14 72 6 10 22.6 13.1 12.4 11.4 106 108 2.7 13.1 13.0 1.7 1.6 1.3 7.9 23 22 233 Conglomerates 18 311 (1) (2) (5) (1) 4 Dec-14 (8) 2 10 10.8 11.5 11.0 9.8 91 95 2.0 8.6 8.2 0.9 0.9 1.4 7.3 27 25 61 Consumer Durables & Apparel 14 141 (2) (0) (5) (6) (6) Dec-14 (4) 5 11 13.3 13.5 12.5 11.1 97 92 3.9 19.2 18.6 2.4 2.2 0.9 8.5 (23) (27) 235 Consumer Staples 18 501 (1) (3) (5) (5) (5) Dec-14 (4) 12 13 21.9 22.4 19.5 16.8 99 100 2.1 15.3 16.6 3.4 3.1 1.8 13.4 19 13 373 Diversified Financials 17 272 (2) (2) (7) (17) (19) Dec-14 51 (18) 12 16.6 10.8 12.8 11.4 104 88 2.6 15.3 11.7 1.5 1.4 na na na na 147 Energy 16 622 (2) (7) (12) (31) (35) Dec-14 (45) 25 23 9.1 16.4 12.8 10.3 81 89 2.6 6.3 7.6 0.9 0.9 0.8 6.7 40 39 174 Environmental Services 29 38 (1) (3) (7) 6 10 Dec-14 17 30 28 28.5 23.8 17.9 13.8 96 97 1.2 11.1 13.1 2.5 2.2 4.4 17.4 60 64 20 Healthcare 17 273 (1) 1 (1) 2 (0) Dec-14 16 18 16 31.7 26.9 22.2 19.4 102 100 0.9 17.1 17.8 4.1 3.6 2.4 17.6 (10) (11) 277 Hotels, Restaurants & Leisure 37 142 (2) (3) (10) (29) (31) Dec-14 (39) 27 21 14.0 22.5 17.2 14.0 99 114 2.8 10.9 13.7 2.5 2.3 2.4 11.2 4 4 132 Insurance 40 500 (2) (2) (7) (5) (2) Dec-14 32 (3) 10 15.4 11.4 11.5 10.2 105 103 1.7 14.8 13.1 1.6 1.4 na na na na 41 Media 8 62 (2) 2 3 42 41 Dec-14 (8) 26 21 35.4 37.7 29.2 23.6 101 106 1.3 17.1 19.6 6.1 5.3 5.2 20.4 7 2 110 Metals & Mining 14 217 (3) (4) (8) (41) (42) Dec-14 (28) (3) 86 17.6 23.8 24.0 12.7 67 53 3.1 3.8 4.1 0.7 0.7 1.2 8.6 57 56 231 Paper & Forest Products 43 6 (2) 3 (9) (16) (12) Dec-14 22 28 15 12.2 10.0 7.8 6.7 103 109 3.0 9.1 10.9 0.9 0.8 1.4 7.7 83 71 42 Real Estate 17 531 (1) (1) (0) 3 11 Dec-14 1 12 10 11.9 11.6 10.1 9.0 103 104 3.1 8.9 9.4 1.0 0.9 2.2 9.2 35 34 298 REITS 8 46 (1) (1) (0) (12) (12) Dec-14 (11) 4 1 15.5 17.4 16.8 16.6 102 103 5.7 4.9 5.0 0.8 0.8 na 21.2 38 39 46 Retailing 29 126 (2) (1) (4) 4 3 Dec-14 35 27 24 47.5 34.6 26.6 22.3 86 98 1.0 6.0 7.5 2.1 1.9 0.7 15.4 21 20 180 Software & Services 13 844 (1) (1) (2) (3) (5) Dec-14 14 18 24 35.7 30.8 25.5 20.3 100 99 0.6 22.8 21.8 6.0 5.1 5.7 24.4 (38) (45) 184 Technology Hardware 23 600 (1) (3) (3) (12) (13) Dec-14 (10) 14 14 10.6 11.5 9.8 8.4 102 110 3.0 12.7 13.4 1.4 1.2 0.7 5.0 (7) (10) 573 Telecommunication Services 32 620 (1) (2) (4) (10) (11) Dec-14 (1) 8 10 15.7 15.9 14.7 13.4 93 98 3.2 10.8 11.4 1.7 1.7 1.9 5.7 24 20 60 Transportation 13 123 (1) (1) (5) (17) (16) Dec-14 66 20 (5) 26.7 15.8 12.8 13.2 114 108 3.0 10.0 11.7 1.6 1.4 1.8 8.5 57 52 202 Utilities 18 387 (1) (2) (7) (8) (15) Dec-14 (5) (12) 7 9.4 9.8 10.9 10.0 97 95 3.7 14.1 11.5 1.3 1.2 2.9 8.8 95 95 158

CS TOTAL - NJA 20 9,152 (1) (3) (5) (12) (13) Dec-14 (4) 4 12 11.6 11.8 11.0 9.7 97 97 2.9 12.2 12.0 1.3 1.2 1.3 8.7 29 26 5,084

CS TOTAL - ASIA PAC 19 13,148 (1) (3) (2) (5) (7) Dec-14 (4) 5 12 14.7 12.9 11.6 10.3 98 98 2.9 11.5 11.4 1.4 1.2 1.3 8.8 32 28 9,342

Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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Australia—valuation summary Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Dvd ROE P/B EV/ EV/ Net debt/ daily con. EPS Yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Banks James Ellis / Jarrod Martin - 61 2 8205 4531 / 61 2 8205 4334

ANZ Banking Group ANZ AU N AUD 26.43 30.00 14 55,447 160.0 (1) (5) 4 (18) (17) (1) (2) 5 (12) (13) Sep-15 (3) 3 4 10.5 10.9 10.6 10.2 96 95 6.9 12.8 1.3 na na na Bank of Queensland BOQ AU N AUD 13.27 14.35 8 3,598 14.6 (1) (2) 2 9 11 (0) 1 3 15 15 Aug-15 9 4 5 14.2 13.0 12.5 11.9 99 99 6.0 11.2 1.3 na na na Bendigo and Adelaide Bank BEN AU N AUD 11.11 13.50 22 3,662 11.9 0 (3) 5 (13) (12) 1 1 6 (7) (9) Jun-15 (3) 7 7 12.4 12.8 11.9 11.1 94 98 6.3 8.9 1.0 na na na

Commonwealth Bank Australia CBA AU O AUD 80.29 84.00 5 98,930 196.8 0 (2) 6 (6) (2) 1 2 7 0 2 Jun-15 2 4 5 15.0 14.7 14.1 13.5 98 99 5.2 16.9 2.3 na na na National Australia Bank NAB AU N AUD 28.96 33.00 14 54,879 126.2 (1) (3) 3 (13) (10) (1) (0) 4 (6) (6) Sep-15 13 3 2 12.6 11.2 10.8 10.6 101 101 6.9 13.2 1.4 na na na Westpac WBC AU O AUD 32.05 35.00 9 76,850 159.9 (1) (3) 2 (3) (3) (0) 0 3 3 1 Sep-15 2 3 2 13.1 12.8 12.5 12.3 99 98 6.0 14.1 1.8 na na na

Sector* 10 293,366 (1) (3) 4 (8) (6) (0) 0 5 (2) (2) Jun-15 3 3 3 13.0 12.7 12.3 11.8 99 98 6.1 14.2 1.7 na na na

Building Materials & Construction

Andrew Peros - 61 2 8205 4013

Adelaide Brighton ABC AU N AUD 4.24 4.75 12 1,985 4.9 (1) (4) (0) 20 21 (1) (0) 0 26 25 Dec-14 27 (10) 1 16.4 12.9 14.4 14.3 107 100 6.4 18.2 2.3 2.0 7.8 24 Boral BLD AU O AUD 5.43 6.40 18 2,914 15.3 (2) (6) (1) 2 5 (2) (3) (1) 9 9 Jun-15 5 20 13 17.2 16.4 13.7 12.1 101 105 3.9 7.1 1.2 1.1 7.5 21

CSR CSR AU N AUD 2.83 3.20 13 1,033 8.9 (1) (7) (11) (27) (22) (1) (3) (10) (21) (18) Mar-15 9 (0) (18) 9.8 9.0 9.0 10.9 101 102 8.5 13.8 1.2 0.6 4.0 (7) James Hardie Industries plc JHX AU N AUD 15.80 18.00 14 5,077 18.4 (4) (5) (10) 22 28 (3) (2) (9) 28 32 Mar-15 12 13 21 22.9 20.5 18.2 15.0 100 102 3.4 (118.0) nm 3.2 12.5 nm Sector* 15 11,009 (3) (5) (6) 12 16 (2) (2) (5) 18 20 Jun-15 13 10 10 18.0 15.9 14.5 13.2 102 103 4.5 17.0 2.7 1.6 8.5 25

Capital Goods Andrew Peros - 61 2 8205 4013

CIMIC Group LEI AU O AUD 23.80 28.50 20 5,813 7.3 (2) (5) (13) 7 9 (2) (2) (12) 13 13 Dec-14 (16) 4 7 13.0 15.5 14.9 13.9 104 106 4.5 13.6 2.1 0.4 5.0 (30)

Dulux Group DLX AU N AUD 6.33 5.95 (6) 1,778 6.5 (1) (0) 7 9 9 (1) 3 8 15 13 Sep-15 4 (0) (1) 19.5 18.8 18.8 18.9 100 95 3.8 35.2 6.2 1.6 12.2 101 GWA GROUP Limited GWA AU U AUD 1.88 2.30 22 377 1.4 (1) (1) 2 (43) (38) (1) 3 2 (37) (34) Jun-15 5 3 (0) 12.7 12.1 11.7 11.7 94 93 1.6 14.6 1.7 1.4 7.4 25 Sector* 14 7,969 (2) (4) (8) 5 7 (1) (1) (7) 11 11 Jun-15 (4) 5 5 15.0 15.7 15.0 14.3 103 103 4.3 15.4 2.4 0.5 6.3 (18)

Chemicals Grant Saligari / Larry Gandler - 61 3 9280 1720 / 61 3 9280 1855

Incitec Pivot IPL AU N AUD 3.84 3.81 (1) 4,675 17.5 0 1 1 20 29 1 4 2 26 33 Sep-15 9 33 13 16.2 14.8 11.1 9.8 100 99 3.4 9.0 1.3 1.9 8.4 23

Nufarm NUF AU N AUD 7.80 8.00 3 1,495 5.6 (2) (8) (5) 65 68 (1) (5) (4) 71 72 Jul-15 9 41 8 19.6 17.9 12.7 11.7 97 110 1.5 8.1 1.4 0.9 7.3 29 Orica ORI AU N AUD 14.84 16.91 14 3,963 24.8 (1) (5) (10) (22) (15) (1) (2) (9) (16) (11) Sep-15 6 1 7 13.2 12.5 12.3 11.5 97 92 6.5 14.6 1.8 1.3 7.6 68 Sector* 5 10,134 (1) (3) (4) 10 17 (0) 0 (3) 17 21 Jun-15 3 18 12 14.8 14.4 12.2 10.9 99 98 4.3 10.4 1.5 1.4 8.0 39

Consumer Staples Grant Saligari / Larry Gandler - 61 3 9280 1720 / 61 3 9280 1855

Asaleo Care Limited AHY AU O AUD 1.62 2.00 23 690 2.5 (1) (4) (5) (2) (11) (0) (1) (5) 4 (7) Dec-14 10 (3) 5 13.5 12.3 12.7 12.1 103 96 6.2 20.5 2.3 1.8 7.8 57

Coca-Cola Amatil CCL AU O AUD 8.80 10.50 19 4,849 14.6 (0) (3) (4) (6) 0 0 0 (3) 1 4 Dec-14 5 5 4 17.9 17.1 16.2 15.6 102 104 5.0 20.8 3.2 1.5 8.5 51 Graincorp GNC AU N AUD 8.00 8.55 7 1,321 5.0 (1) (3) (2) (3) (1) (0) 1 (2) 3 3 Sep-15 53 51 13 41.2 26.9 17.8 15.7 96 94 1.9 3.7 1.0 0.7 9.5 42 Metcash MTS AU N AUD 1.56 1.49 (4) 1,045 6.0 (0) 0 16 (16) (14) 0 3 17 (10) (10) Oct-15 (8) (6) (3) 7.6 8.3 8.9 9.2 102 99 0.0 8.6 0.7 0.1 5.6 33

Treasury Wine TWE AU O AUD 7.89 9.20 17 4,203 16.4 (0) (0) 11 68 68 0 3 11 74 72 Jun-15 34 16 18 36.7 27.3 23.5 19.9 102 98 2.4 6.0 1.6 2.7 14.9 16 Wesfarmers WES AU N AUD 37.99 41.67 10 30,871 73.0 (1) (3) (2) (9) (11) (1) 0 (1) (3) (7) Jun-15 2 10 7 17.6 17.3 15.7 14.7 98 100 5.3 9.9 1.7 0.7 9.6 24 Woolworths WOW AU N AUD 23.60 26.22 11 21,644 79.6 (0) (2) 0 (23) (22) 0 1 1 (17) (18) Jun-15 (32) 0 5 12.1 17.8 17.7 16.8 92 91 3.8 15.1 2.7 0.5 9.1 30

Sector* 11 64,623 (1) (2) (0) (8) (9) (0) 1 1 (2) (5) Jun-15 (12) 6 7 15.5 17.6 16.5 15.5 97 97 4.5 11.1 1.9 0.7 9.4 28

Diversified Financials Andrew Adams / James Ellis - 61 2 8205 4106 / 61 2 8205 4531

ASX ASX AU N AUD 40.95 40.00 (2) 5,721 15.9 (0) (3) 1 11 14 0 0 2 18 18 Jun-15 2 2 4 19.6 19.2 18.8 18.1 99 97 4.7 10.9 2.1 na na na BT Investment Management BTT AU N AUD 12.70 10.50 (17) 2,735 6.3 (1) (1) 5 89 86 (0) 3 5 95 90 Sep-15 32 10 13 28.9 21.9 20.0 17.7 102 102 3.8 21.8 4.5 na na na Challenger Limited CGF AU O AUD 8.47 10.20 20 3,488 18.2 (2) (3) 3 30 36 (1) (0) 4 36 39 Jun-15 7 8 10 14.8 13.9 12.9 11.7 101 101 3.8 13.6 1.7 na na na

Computershare CPU AU O AUD 11.47 12.00 5 4,569 15.8 (1) (2) 6 (3) 0 (0) 1 7 3 4 Jun-15 (7) 3 4 13.8 14.9 14.5 13.9 100 98 2.9 24.9 3.6 na na na Henderson Group PLC HGG AU N AUD 6.10 6.40 5 2,721 12.5 (1) (4) (3) 50 53 (1) (1) (2) 56 56 Dec-14 10 10 12 19.3 17.6 16.0 14.3 97 96 3.4 18.8 3.1 na na na IOOF Holdings IFL AU O AUD 9.40 9.80 4 2,036 8.8 (1) (2) (1) 6 6 (1) 1 (0) 12 10 Jun-15 2 10 12 15.8 15.5 14.1 12.6 99 101 6.0 13.5 2.1 na na na

Macquarie Group MQG AU O AUD 80.80 90.00 11 19,841 66.8 (2) (2) 1 39 33 (1) 1 1 45 37 Mar-15 26 1 4 16.7 13.3 13.1 12.7 102 100 4.8 14.5 1.8 na na na Perpetual Limited PPT AU N AUD 45.35 43.00 (5) 1,524 7.8 (1) (3) 1 (2) (3) (0) 0 2 4 1 Jun-15 (6) 7 7 16.0 17.1 16.0 14.9 98 97 5.3 21.0 3.5 na na na Platinum Asset Management PTM AU U AUD 7.68 7.50 (2) 3,251 5.3 (5) (7) 2 7 9 (4) (4) 3 13 12 Jun-15 6 5 7 21.0 19.8 18.8 17.6 98 94 4.9 65.7 13.2 na na na

Suncorp Group Limited SUN AU N AUD 13.31 13.40 1 12,357 37.4 (1) (3) 3 (5) (4) (0) 1 4 2 (0) Jun-15 18 9 (4) 15.2 12.8 11.7 12.2 99 105 7.1 10.0 1.2 na na na Sector* 5 58,242 (1) (3) 2 22 21 (1) 0 3 28 25 Jun-15 14 6 3 16.6 14.6 13.8 13.8 100 101 5.1 13.9 1.9 na na na

Energy Mark Samter / Paul McTaggart / Sam Webb - 61 2 8205 4537 / 61 2 8205 4698 / 61 2 8205 4535

AWE Limited AWE AU O AUD 0.55 0.95 73 207 2.0 0 (16) (17) (58) (52) 1 (13) (16) (51) (48) Jun-15 nm nm (63) nm nm 15.6 41.9 282 nm 0.0 (1.4) 0.4 1.8 4.3 22 Beach Energy BPT AU O AUD 0.44 0.80 82 409 3.7 (1) (17) (32) (58) (51) (1) (14) (31) (52) (48) Jun-15 (52) 170 13 6.6 13.7 5.1 4.5 66 119 2.3 3.2 0.4 0.8 2.3 (4)

Caltex Australia CTX AU O AUD 33.90 40.00 18 6,605 27.6 0 (1) 7 (1) 12 1 2 8 5 15 Dec-14 17 6 (0) 18.6 15.9 15.1 15.1 97 101 3.1 20.7 3.0 0.4 9.0 12 Drillsearch Energy Limited DLS AU O AUD 0.53 0.70 32 175 1.1 (2) (18) (33) (35) (32) (1) (15) (32) (29) (28) Jun-15 (80) 127 62 2.0 9.9 4.4 2.7 70 108 0.0 8.0 0.7 1.1 2.7 3 New Hope Corporation NHC AU O AUD 2.00 2.25 13 1,199 0.3 0 (2) 6 (18) (14) 1 1 7 (11) (10) Jul-15 63 (17) (53) 32.1 19.7 23.6 50.6 167 99 5.0 4.6 0.9 2.8 10.9 (10)

Oil Search OSH AU N AUD 6.35 8.00 26 6,977 40.8 1 (23) (19) (19) (12) 2 (20) (18) (13) (9) Dec-14 (27) 6 36 14.5 20.0 18.9 13.9 93 114 2.1 6.9 1.4 6.8 9.8 69 Origin Energy ORG AU N AUD 4.82 6.10 27 6,085 39.6 (3) (15) (6) (53) (49) (3) (11) (5) (47) (45) Jun-15 (33) 41 (1) 7.8 11.6 8.2 8.3 162 110 4.1 4.8 0.5 1.7 11.4 67 Santos Ltd STO AU O AUD 3.50 5.00 43 4,459 40.1 6 (14) (32) (51) (48) 6 (10) (31) (45) (44) Dec-14 (74) 61 65 6.5 25.1 15.6 9.5 148 105 5.7 1.8 0.5 3.5 7.6 54

Senex Energy Limited SXY AU O AUD 0.13 0.30 131 108 0.8 4 (7) (33) (59) (46) 5 (4) (33) (53) (42) Jun-15 (240) nm 61 26.9 nm 16.5 10.2 nm 79 0.0 (2.0) 0.4 0.7 8.0 (21) Woodside Petroleum WPL AU N AUD 27.03 32.00 18 16,070 61.0 1 (12) (8) (29) (21) 1 (8) (7) (23) (18) Dec-14 (54) (24) 20 6.7 14.5 19.1 15.8 100 89 5.5 7.1 1.1 4.6 6.9 29 WorleyParsons WOR AU N AUD 4.69 8.00 71 829 10.8 0 (18) (25) (53) (53) 1 (15) (25) (47) (49) Jun-15 (10) 10 21 5.8 6.5 5.9 4.9 101 105 10.9 8.6 0.5 0.3 4.9 43

Sector* 25 43,124 1 (13) (10) (29) (22) 1 (9) (9) (23) (19) Jun-15 (28) 21 19 11.5 15.9 13.2 11.1 108 98 4.1 5.9 0.9 1.5 7.8 42

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Australia—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Dvd ROE P/B EV/ EV/ Net debt/ daily con. EPS Yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Healthcare Saul Hadassin - 61 2 8205 4679

Ansell Limited ANN AU N AUD 21.55 20.50 (5) 2,391 14.6 1 (1) 9 (4) (0) 1 2 10 2 4 Jun-15 (7) 2 4 13.2 14.2 13.9 13.3 97 96 2.8 14.4 2.0 1.8 10.7 41 Australian Pharmaceutical Ind

API AU N AUD 2.12 1.90 (10) 748 1.1 3 2 11 147 149 4 6 11 153 153 Aug-15 10 9 5 24.3 22.1 20.3 19.3 100 99 2.5 9.2 2.0 0.3 10.0 4

CSL Ltd CSL AU O AUD 99.03 95.00 (4) 33,219 73.9 0 (1) 4 14 14 1 2 4 20 17 Jun-15 (5) 16 18 24.1 25.5 21.9 18.6 95 96 1.6 45.5 11.1 5.7 18.8 70 Cochlear COH AU U AUD 92.05 77.10 (16) 3,798 13.9 (1) (4) 4 18 25 (1) (1) 5 25 29 Jun-15 23 12 (5) 36.1 29.4 26.1 27.6 100 100 2.4 46.6 12.6 4.8 18.9 21 Healthscope HSO AU U AUD 2.49 2.68 8 3,118 22.5 0 (6) (9) (8) (5) 1 (2) (8) (2) (1) Jun-15 2 9 11 25.0 24.5 22.5 20.3 95 92 2.9 7.5 1.8 2.3 13.1 40

Mayne Pharma MYX AU O AUD 1.32 1.36 3 769 1.3 (1) (5) 21 109 119 (1) (2) 21 115 123 Jun-15 177 20 17 79.5 28.7 23.9 20.4 94 86 0.0 11.5 3.0 4.3 14.9 15 Primary Health Care PRY AU U AUD 2.99 3.30 10 1,125 9.3 0 (7) (19) (37) (38) 1 (4) (18) (30) (34) Jun-15 (21) 2 5 12.8 16.2 15.9 15.1 82 77 4.7 3.9 0.6 1.6 7.0 43 Ramsay Health Care RHC AU N AUD 64.80 70.15 8 9,449 19.5 (1) (4) 2 13 17 (0) (0) 3 20 21 Jun-15 10 15 13 31.9 29.1 25.4 22.6 97 98 1.8 27.1 7.6 2.0 13.0 129

ResMed Inc. RMD AU N AUD 7.70 8.70 13 7,753 19.5 0 (5) (6) 11 17 1 (2) (5) 17 21 Jun-15 3 14 10 21.9 21.3 18.7 16.9 98 99 2.2 23.8 5.2 4.2 14.3 (25) Sigma Pharmaceuticals SIP AU O AUD 0.81 0.83 2 632 1.1 1 (4) 3 11 12 2 (0) 4 17 16 Jan-15 10 6 2 16.6 15.2 14.3 14.1 101 99 4.9 10.2 1.6 0.3 9.9 11 Sonic Healthcare SHL AU N AUD 20.01 20.50 2 5,967 22.6 (0) (2) 1 8 15 0 1 2 14 18 Jun-15 24 9 7 22.3 17.9 16.4 15.4 100 101 3.9 13.2 2.2 2.0 11.4 50

Sector* 0 69,424 0 (2) 1 13 15 1 1 2 19 19 Jun-15 13 15 19 27.6 24.5 21.3 18.0 97 97 2.1 19.8 4.6 2.8 15.1 46

Hotels, Restaurants & Leisure

Grant Saligari / Larry Gandler - 61 3 9280 1720 / 61 3 9280 1855

Aristocrat Leisure ALL AU O AUD 9.69 10.40 7 4,455 13.7 (2) 1 4 48 47 (1) 4 5 54 51 Sep-15 17 11 7 25.7 21.9 19.8 18.5 92 93 1.9 28.8 5.9 4.2 12.3 122 Crown CWN AU N AUD 10.98 12.40 13 5,771 17.5 (2) (5) (7) (13) (18) (1) (2) (6) (7) (14) Jun-15 (12) (3) 19 15.2 17.2 17.8 15.0 95 83 3.4 9.8 1.6 3.0 12.3 56

Flight Centre FLT AU N AUD 35.00 38.60 10 2,547 13.5 (1) (4) (7) 7 (8) (1) (1) (6) 13 (5) Jun-15 5 5 5 13.8 13.1 12.4 11.8 99 100 4.5 20.2 2.5 1.3 8.1 2 Star Entertainment Group EGP AU N AUD 4.80 5.45 14 2,860 11.5 (0) (1) (2) 27 30 0 3 (2) 33 34 Jun-15 3 4 11 18.1 17.6 17.0 15.3 95 92 2.9 7.3 1.3 1.9 8.3 16 Tabcorp Holdings TAH AU O AUD 4.67 5.70 22 2,802 12.5 0 0 2 21 20 1 4 3 27 24 Jun-15 2 12 6 21.6 21.1 18.9 17.8 98 101 5.1 10.8 2.3 2.1 8.9 50

Tatts Group TTS AU U AUD 4.33 3.40 (21) 4,576 11.2 0 1 12 25 27 1 4 13 31 30 Jun-15 3 (5) (10) 24.1 23.5 24.8 27.6 98 89 9.9 8.5 1.9 2.3 13.4 22 Sector* 6 23,011 (1) (2) 1 17 15 (0) 2 2 24 19 Jun-15 2 3 8 19.3 18.9 18.4 17.1 96 91 4.7 11.2 2.0 2.4 10.9 40

Insurance Andrew Adams - 61 2 8205 4106

AMP AMP AU N AUD 5.76 6.35 10 12,294 31.7 (1) (3) (1) 5 4 (0) 1 (1) 11 8 Dec-14 8 4 8 17.8 16.5 15.9 14.8 92 91 4.9 11.8 2.0 na na na Austbrokers AUB AU N AUD 9.00 9.20 2 411 0.3 0 4 (1) (11) (10) 1 7 0 (5) (7) Jun-15 3 4 1 16.7 16.2 15.7 15.5 92 90 4.4 12.9 2.1 na na na

Insurance Australia Group IAG AU O AUD 5.58 5.75 3 9,790 32.1 (1) (2) 1 (11) (11) (1) 1 2 (5) (7) Jun-15 3 13 4 18.3 17.7 15.6 15.0 82 89 5.7 11.4 2.0 na na na Medibank Private Limited MPL AU U AUD 2.22 2.20 (1) 4,412 21.4 (3) (6) (6) (8) 0 (2) (3) (5) (2) 4 Jun-15 4 14 9 21.0 20.2 17.8 16.3 96 97 3.7 20.6 4.1 na na na NIB Holdings Limited NHF AU U AUD 3.78 3.50 (7) 1,197 1.1 (1) (2) (1) 20 22 0 2 (0) 26 25 Jun-15 (5) 20 12 21.9 23.0 19.2 17.2 93 96 2.8 20.2 4.5 na na na

QBE Insurance Group QBE AU N AUD 12.24 13.90 14 12,112 43.3 (1) (3) (9) 9 10 (1) 0 (9) 15 14 Dec-14 9 41 6 16.2 14.9 10.6 10.0 93 111 3.0 7.4 1.1 na na na Steadfast SDF AU O AUD 1.49 1.70 14 803 1.7 0 2 2 (0) 2 1 6 2 6 6 Jun-15 12 4 3 15.2 13.6 13.1 12.7 106 101 4.1 9.6 1.3 na na na Tower Limited TWR AU N AUD 1.69 1.80 7 207 0.1 0 (2) (10) (18) (16) 1 2 (9) (12) (13) Sep-15 nm 7 8 nm 11.1 10.3 9.6 93 92 8.8 9.8 1.1 na na na

Sector* 8 41,226 (1) (3) (4) 1 2 (1) 0 (3) 7 6 Jun-15 17 15 6 18.0 15.5 13.4 12.6 94 99 4.8 10.8 1.6 na na na

Media Fraser McLeish / Lucas Goode - 61 2 8205 4069 / 61 2 8205 4431

APN News & Media APN AU O AUD 0.47 0.86 83 349 1.1 (3) (5) (3) (44) (35) (3) (2) (2) (38) (31) Dec-14 (6) 13 8 6.2 6.6 5.9 5.4 101 108 0.0 15.7 1.0 1.1 6.2 87 Fairfax Media FXJ AU O AUD 0.88 1.10 25 1,537 6.8 (2) (3) (1) 1 16 (2) 0 (0) 7 20 Jun-15 4 9 (2) 14.7 14.1 13.0 13.3 94 98 5.7 7.5 1.1 1.1 6.9 (2) Nine Entertainment NEC AU O AUD 1.79 1.90 6 1,136 3.4 (2) 1 16 (6) (10) (2) 4 17 (0) (6) Jun-15 5 14 18 12.0 11.5 10.1 8.5 103 105 7.9 13.2 1.5 1.2 7.4 5

Seven West Media SWM AU N AUD 0.79 0.85 8 860 2.4 1 1 14 (39) (45) 2 5 14 (33) (41) Jun-15 (41) (5) 5 3.9 6.6 7.0 6.7 94 101 10.1 14.7 1.0 1.1 5.4 51 Southern Cross Media Group

SXL AU N AUD 1.18 1.00 (15) 654 1.1 (2) (2) 11 5 17 (2) 2 12 11 21 Jun-15 7 6 4 13.2 12.3 11.6 11.1 96 100 5.1 7.0 0.9 2.2 8.2 51

Ten Network Holdings TEN AU N AUD 0.16 0.19 19 416 0.4 0 3 (6) (26) (26) 1 7 (5) (20) (23) Aug-15 nm nm 146 nm nm 31.1 12.6 27 257 0.0 (5.3) 1.0 0.9 164.7 2 Sector* 16 4,952 (2) (1) 6 (13) (8) (1) 2 7 (7) (4) Jun-15 (8) 14 11 10.8 11.7 10.3 9.3 95 103 6.1 9.4 1.1 1.2 7.1 25

Metals & Mining Michael Slifirski / Paul McTaggart / Ralph Profiti - 61 3 9280 1845 / 61 2 8205 4698 / 416 352 4563

Alacer Gold Corp. AQG AU O AUD 2.75 3.90 42 578 0.5 3 4 3 12 9 4 7 4 18 13 Dec-14 (10) (76) (33) 11.7 13.0 53.3 79.6 104 58 0.0 7.3 0.9 0.9 1.9 (48) Altona Mining Limited AOH AU O AUD 0.09 0.26 189 36 0.1 (8) (8) (16) (8) (8) (7) (5) (16) (2) (4) Jun-14 (161) nm nm 4.9 nm nm nm 123 237 0.0 (6.7) 0.8 425.9 nm (74)

Alumina Limited AWC AU N AUD 1.09 1.30 19 2,255 16.0 0 (7) (9) (40) (37) 1 (3) (8) (33) (33) Dec-14 nm (36) 56 nm 16.0 24.8 15.9 68 69 8.3 5.9 1.0 14.4 15.8 1 Arrium OST AU U AUD 0.06 0.15 150 131 0.7 7 (16) (31) (71) (65) 7 (13) (30) (65) (61) Jun-15 nm (30) 43 nm 4.4 6.3 4.4 100 43 0.0 1.6 0.1 0.3 4.4 63 BHP Billiton BHP AU N AUD 17.16 22.50 31 62,684 161.0 1 (8) (20) (36) (34) 1 (5) (19) (29) (31) Jun-15 (51) (1) 31 10.4 21.2 21.5 16.4 101 68 10.0 5.0 1.1 2.5 6.1 42

BlueScope Steel BSL AU O AUD 3.87 5.50 42 1,595 11.2 (0) (7) (13) (31) (26) 0 (4) (12) (25) (22) Jun-15 45 32 22 16.7 11.5 8.7 7.1 136 110 2.6 5.1 0.7 0.4 4.2 30 Evolution Mining Limited EVN AT N AUD 1.39 1.19 (14) 1,463 9.3 6 16 9 130 178 7 20 10 137 182 Jun-15 45 (27) (8) 10.3 7.1 9.7 10.6 102 72 1.3 19.3 1.1 1.7 3.8 9 Fortescue Metals Group Ltd

FMG AU N AUD 1.82 2.40 32 4,089 29.6 1 (7) (17) (34) (29) 1 (4) (17) (27) (25) Jun-15 104 (102) nm 12.9 6.3 nm 37.4 139 nm 2.2 8.2 0.5 1.5 3.5 73

Gryphon Minerals Limited GRY AU O AUD 0.05 0.07 40 15 0.0 0 9 0 (20) (2) 1 12 1 (14) 2 Jun-15 nm nm nm nm nm nm nm 207 154 0.0 (12.0) 0.9 nm nm (56) Iluka Resources ILU AU N AUD 5.09 6.50 28 1,538 10.5 (1) (12) (20) (14) (14) (0) (9) (19) (8) (10) Dec-14 405 136 6 109.3 21.7 9.2 8.7 98 115 1.8 6.8 1.5 2.7 7.9 7

Independence Group NL IGO AU N AUD 2.18 3.50 61 805 6.2 0 (11) (21) (51) (46) 1 (8) (20) (45) (43) Jun-15 (48) 42 122 6.7 13.0 9.1 4.1 105 109 2.8 7.6 0.7 2.6 6.7 14 Kula Gold KGD AU O AUD 0.02 0.06 200 3 0.0 0 (6) (32) (66) (65) 1 (3) (31) (60) (61) Dec-14 nm nm nm nm nm nm nm 92 98 0.0 (2.2) 0.1 nm nm (2) Newcrest Mining NCM AU U AUD 12.14 11.50 (5) 6,715 35.5 2 6 8 11 18 3 10 8 18 22 Jun-15 (11) 64 23 18.1 20.3 12.4 10.1 101 100 0.0 5.1 1.0 2.8 7.3 40

OZ Minerals OZL AU O AUD 4.02 4.75 18 880 6.7 (0) (1) (8) 16 34 0 2 (7) 22 38 Dec-14 341 (120) nm 40.3 9.1 nm nm 113 nm 2.5 5.8 0.5 0.8 1.6 (21) OceanaGold Corporation OGC AU N AUD 2.62 2.65 1 1,140 1.0 3 0 5 26 24 4 3 6 32 28 Dec-14 (63) (10) (7) 5.2 13.9 15.5 16.6 86 88 1.1 8.5 1.5 2.5 6.2 16 Paladin Energy PDN AU U AUD 0.21 0.27 29 265 1.2 (2) (9) (21) (42) (32) (2) (5) (20) (36) (28) Jun-15 (89) 85 33 1.5 13.4 7.2 5.4 nm 150 0.0 7.2 0.9 2.3 7.2 97

Perseus Mining PRU AU O AUD 0.35 0.69 97 132 0.9 3 5 0 33 50 4 8 1 39 54 Jun-15 (91) (35) nm 2.1 23.5 36.2 nm na nm 0.0 1.4 0.3 0.3 1.8 (11) Regis Resources Limited RRL AU U AUD 2.12 1.90 (10) 765 3.8 3 8 15 10 43 3 12 15 16 47 Jun-15 5 18 (1) 12.2 11.6 9.9 10.0 106 95 7.9 22.2 2.6 2.3 5.6 (9)

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Australia—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Dvd ROE P/B EV/ EV/ Net debt/ daily con. EPS Yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Metals & Mining Michael Slifirski / Paul McTaggart / Ralph Profiti - 61 3 9280 1845 / 61 2 8205 4698 / 416 352 4563

Rio Tinto RIO AU N AUD 42.05 53.00 26 52,008 78.2 (1) (10) (14) (28) (24) (0) (6) (13) (21) (20) Dec-14 (42) (42) 7 6.0 10.4 18.0 16.9 114 74 7.1 12.1 1.3 2.0 5.1 32 Sandfire Resources NL SFR AU U AUD 5.19 5.60 8 587 5.4 (0) (5) (14) 14 20 0 (1) (13) 20 24 Jun-15 11 (27) 29 11.8 10.6 14.5 11.2 86 53 2.8 20.6 2.1 1.9 3.9 (2) Sims Metal Management SGM AU N AUD 6.43 8.00 24 954 8.6 0 (6) (34) (47) (42) 1 (2) (33) (40) (38) Jun-15 (68) 192 23 13.0 40.5 13.9 11.3 61 88 1.2 1.7 0.8 0.2 5.6 (18)

South 32 S32 AU O AUD 1.05 1.70 62 4,015 27.0 1 (12) (27) na na 2 (9) (26) na na Jun-15 (45) 69 18 7.0 12.9 7.6 6.4 101 92 3.1 2.8 0.4 0.6 3.0 1 Syrah Resources SYR AU O AUD 3.26 6.35 95 543 2.5 (0) (8) (1) 4 23 0 (5) (0) 10 27 Dec-14 nm nm nm nm nm nm 7.0 74 93 0.0 (12.6) 3.0 712.6 nm (54) Western Areas WSA AU O AUD 2.17 3.50 61 366 4.0 (3) (4) (10) (42) (43) (3) (1) (9) (36) (39) Jun-15 (52) 441 5 14.4 29.8 5.5 5.3 38 102 1.2 4.2 1.3 1.6 4.5 (18)

Whitehaven Coal WHC AU O AUD 0.82 1.60 95 607 2.5 (1) (12) (20) (41) (32) (1) (8) (19) (35) (28) Jun-15 nm (14) (3) nm 10.1 11.7 12.1 291 145 0.0 2.9 0.3 1.3 5.8 29 Sector* 28 144,168 0 (8) (16) (27) (24) 1 (4) (15) (21) (20) Jun-15 (31) (10) 29 10.9 15.8 17.5 13.6 100 73 7.4 6.6 1.0 1.9 5.7 34

Real Estate Ian Randall - 612 8205 4580

Lend Lease LLC AU O AUD 12.81 16.60 30 5,373 22.2 (1) (1) 5 (22) (18) (1) 2 5 (16) (14) Jun-15 10 10 8 12.0 10.9 9.9 9.1 98 101 4.8 13.2 1.4 8.3 26

REITS Ian Randall / Mikhail Mohl - 612 8205 4580 / 61 2 8205 4413

BWP Trust BWP AU U AUD 3.16 2.65 (16) 1,465 3.5 0 (3) (1) 13 21 1 0 (0) 19 25 Jun-15 5 3 2 19.9 18.9 18.3 17.8 100 101 5.3 11.3 2.1 19.1 32

Charter Hall Group CHC AU N AUD 4.48 4.50 0 1,323 3.8 (1) (1) 2 (1) (3) (0) 2 3 5 1 Jun-15 8 2 5 16.3 15.1 14.8 14.2 100 98 5.9 8.4 1.3 14.5 (0) Charter Hall Retail REIT CQR AU U AUD 4.15 3.84 (7) 1,204 3.4 (0) 1 3 1 2 0 4 3 7 6 Jun-15 2 2 4 14.0 13.7 13.4 12.9 99 99 6.8 8.4 1.1 16.6 53 Cromwell Property Group CMW AU U AUD 1.03 1.00 (3) 1,299 3.6 0 (1) 4 0 3 1 2 5 6 7 Jun-15 12 2 1 12.3 11.0 10.8 10.7 105 107 7.9 154.4 17.0 14.1 88

Dexus Property Group DXSDA AU N AUD 7.66 7.90 3 5,350 16.5 (2) (3) 1 10 10 (1) 1 2 16 14 Jun-15 6 (4) 3 12.9 12.2 12.8 12.3 108 103 5.6 8.8 1.1 13.3 43 GDI Property Group GDI AU O AUD 0.90 0.98 9 348 0.6 (1) 1 1 4 2 (0) 4 1 10 6 Jun-14 110 3 6 22.9 10.9 10.5 9.9 56 98 8.4 8.5 0.9 12.9 53 GPT Group GPT AU N AUD 4.65 4.59 (1) 6,022 19.9 (1) (1) 2 7 12 (1) 2 2 13 16 Dec-14 6 3 3 17.3 16.4 15.9 15.4 101 100 4.9 7.1 1.1 17.7 40

Goodman Group GMGDA AU N AUD 6.15 6.11 (1) 7,855 21.1 (2) (0) 3 8 9 (1) 3 3 14 13 Jun-15 6 5 6 16.5 15.5 14.7 13.9 100 100 3.9 8.8 1.4 16.5 33 Investa Office Fund IOF AU N AUD 4.08 4.17 2 1,808 5.1 (2) 6 6 12 14 (1) 10 7 18 18 Jun-15 2 2 3 14.7 14.5 14.2 13.8 108 108 4.8 8.1 1.2 18.0 46 Mirvac Group MGR AU O AUD 1.93 2.00 4 5,141 18.5 0 3 8 8 7 1 6 9 14 11 Jun-15 6 7 8 15.6 14.8 13.9 12.9 101 101 5.1 7.0 1.0 16.1 37

SCA Property Group SCP AU U AUD 2.10 1.90 (10) 1,098 3.4 (0) (1) 4 13 16 0 2 5 19 20 Jun-15 6 3 3 16.4 15.5 15.1 14.6 101 99 5.8 7.6 1.2 17.2 53 Scentre Group SCG AU O AUD 4.11 4.12 0 15,791 36.9 (1) 0 2 17 20 (0) 4 3 24 24 Dec-14 3 2 4 18.9 18.3 18.0 17.3 100 99 5.1 7.2 1.3 17.3 63 Stockland Group SGP AU O AUD 4.08 4.64 14 7,000 27.9 0 0 4 (1) (1) 1 4 5 5 3 Jun-15 8 7 5 15.7 14.6 13.6 12.9 100 102 6.0 7.4 1.1 17.9 35

Vicinity Centres CRF AU N AUD 2.78 2.79 0 7,941 28.0 (0) 0 (2) (3) 0 0 3 (1) 3 4 Jun-15 10 4 3 16.1 14.6 14.1 13.6 102 100 6.3 7.0 1.0 16.7 41 Westfield Corporation WFD AU U AUD 9.57 9.47 (1) 14,351 37.1 (1) (1) (3) 6 11 (0) 3 (2) 12 14 Dec-13 na 2 4 na 18.4 18.0 17.3 159 103 3.6 10.3 1.9 21.7 62 Sector* 1 77,996 (1) (0) 1 8 10 (0) 3 2 14 14 Jun-15 7 4 5 16.9 15.9 15.3 14.6 101 101 5.0 8.1 1.3 17.3 45

Retailing Grant Saligari / Lucas Goode - 61 3 9280 1720 / 61 2 8205 4431

Harvey Norman HVN AU O AUD 4.00 4.42 11 3,208 11.0 0 (1) 2 19 16 1 2 3 25 19 Jun-15 21 6 2 16.7 13.8 13.0 12.8 107 106 4.6 12.3 1.7 2.8 8.8 16

JB Hi-Fi JBH AU N AUD 18.06 19.05 5 1,289 12.3 1 0 1 14 18 2 4 2 20 22 Jun-15 (0) 12 5 13.2 13.3 11.9 11.3 95 101 5.0 37.1 4.6 0.5 7.6 16 Myer Holdings MYR AU N AUD 1.18 1.15 (3) 699 4.1 0 0 24 (10) (13) 1 3 24 (4) (10) Jul-15 (32) 1 6 9.0 13.2 13.1 12.4 104 100 0.0 7.0 0.9 0.3 5.4 14 Premier Investments PMV AU U AUD 13.62 13.07 (4) 1,540 2.7 (4) (6) 1 39 28 (4) (2) 2 45 32 Jul-15 6 11 12 24.0 22.7 20.4 18.2 94 94 4.0 7.0 1.6 1.9 14.4 (12)

Super Retail Group SUL AU U AUD 10.45 8.71 (17) 1,487 4.8 (0) (2) 9 46 39 0 2 10 52 43 Jun-15 10 10 19 19.5 17.7 16.0 13.5 96 93 3.9 14.9 2.6 1.1 9.8 55 iCar Asia Ltd ICQ AU O AUD 0.93 1.00 8 142 0.2 2 (4) (2) (15) 14 3 (0) (1) (9) 18 Dec-14 nm nm nm nm nm nm nm 97 155 0.0 (33.0) 5.2 24.6 nm (49) Sector* 1 8,365 (1) (2) 5 24 20 (0) 1 6 30 24 Jun-15 6 8 7 16.8 15.8 14.6 13.6 101 101 4.0 11.9 1.8 1.0 9.0 15

Software & Services Fraser McLeish / Lucas Goode - 61 2 8205 4069 / 61 2 8205 4431

News Corporation NWS AU N AUD 19.22 23.40 22 7,904 2.4 (1) (5) (9) 4 6 (1) (2) (8) 10 10 Jun-15 26 9 15 29.2 23.3 21.4 18.5 101 95 1.4 2.8 0.7 0.7 5.9 (17)

REA Group REA AU O AUD 51.20 53.50 4 4,866 11.3 (2) (1) 5 13 14 (2) 2 6 19 18 Jun-15 32 18 17 37.8 28.5 24.2 20.6 102 100 1.8 37.9 9.8 10.3 17.8 (29) Seek SEK AU N AUD 14.06 12.50 (11) 3,495 15.8 0 (1) 5 (19) (18) 1 3 6 (12) (14) Jun-15 (1) 28 20 26.1 26.4 20.6 17.1 94 103 2.6 15.7 3.9 5.3 14.2 22 carsales.com.au CAR AU O AUD 10.70 11.30 6 1,859 6.0 0 3 9 3 3 1 7 10 9 7 Jun-15 13 10 8 25.8 22.7 20.8 19.2 101 98 3.5 46.9 10.0 8.1 16.4 63

iProperty Group Ltd IPP AU N AUD 3.88 4.00 3 526 1.2 0 1 1 45 63 1 4 2 51 67 Dec-14 nm 322 54 nm 290.6 68.9 44.8 79 115 0.0 7.1 19.4 21.1 186.2 (27) Sector* 9 18,649 (1) (2) (1) 3 5 (0) 1 0 9 9 Jun-15 28 16 17 32.8 25.5 22.0 18.8 100 98 1.9 5.6 1.4 1.7 10.2 (13)

Telecommunication Services

Fraser McLeish - 61 2 8205 4069

TPG Telecom TPM AU U AUD 10.14 9.00 (11) 6,189 11.3 (1) (5) (7) 50 42 (1) (1) (7) 56 46 Jul-15 39 18 11 35.9 25.8 21.9 19.8 99 100 1.6 25.5 5.6 4.1 12.8 86

Telstra Corporation TLS AU U AUD 5.31 5.25 (1) 46,845 116.4 (1) (4) 2 (11) (6) (0) (0) 2 (5) (2) Jun-15 0 9 15 15.5 15.4 14.2 12.3 97 98 5.8 29.4 4.5 2.9 7.2 92 Sector* (2) 53,034 (1) (4) 1 (4) (0) (0) (1) 1 2 4 Jun-15 2 9 15 16.6 16.2 14.8 12.9 97 98 5.3 29.1 4.6 3.0 7.6 91

Transportation Paul Butler - 61 2 8205 4309

Aurizon AZJ AU O AUD 5.21 5.70 9 7,892 26.9 (1) (6) 2 13 16 (1) (3) 3 19 20 Jun-15 7 9 8 18.4 17.2 15.7 14.6 102 100 5.8 10.0 1.7 3.8 9.0 52 Sydney Airport SYD AU N AUD 6.27 6.00 (4) 10,087 27.6 (0) (4) 2 33 35 0 (0) 2 39 39 Dec-14 264 23 14 234.8 64.5 52.6 45.9 88 98 4.1 15.6 11.2 17.4 21.3 605

Transurban TCL AU O AUD 10.11 11.50 14 14,022 33.3 (1) 0 (0) 18 18 (0) 3 0 24 22 Jun-15 nm 136 44 nm 206.7 87.4 60.5 34 66 4.5 1.9 3.8 16.1 22.7 185 Sector* 7 39,832 (1) (3) 1 24 27 (0) 1 1 30 30 Jun-15 76 20 14 64.3 36.4 30.4 26.8 89 95 4.4 8.3 3.0 6.6 15.0 139

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Australia—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Dvd ROE P/B EV/ EV/ Net debt/ daily con. EPS Yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Utilities Peter Wilson - 61 2 8205 4107

AGL Energy AGL AU O AUD 16.84 18.40 9 8,199 23.0 (0) (1) 2 26 27 0 2 2 32 31 Jun-15 10 24 10 17.5 15.8 12.7 11.6 102 113 4.6 7.8 1.2 1.3 8.4 28 APA Group APA AU N AUD 8.41 8.50 1 6,762 15.7 0 (2) (6) 13 10 1 1 (5) 19 13 Jun-15 9 23 4 41.0 37.7 30.6 29.6 98 102 4.9 7.6 2.9 8.5 14.0 214 AusNet Services SPN AU N AUD 1.49 1.55 4 3,760 4.5 0 (1) 2 12 12 1 2 3 18 15 Mar-15 11 (21) (15) 16.3 14.6 18.5 21.9 105 110 5.7 61.7 8.0 6.1 10.1 196

DUET Group DUE AU N AUD 2.36 2.30 (3) 3,953 15.9 1 (1) 2 2 1 2 3 2 8 5 Jun-15 6 10 (4) 42.3 39.7 35.9 37.4 73 75 7.6 5.4 1.7 7.2 11.6 175 Spark Infrastructure Group SKI AU O AUD 1.95 2.30 18 2,361 6.3 0 0 (3) (8) 1 1 4 (2) (2) 5 Dec-14 (10) (34) 0 21.4 23.7 35.9 35.8 69 54 6.2 6.5 1.5 12.2 12.7 10 Sector* 5 25,035 0 (1) (1) 13 14 1 2 0 19 17 Jun-15 5 10 3 23.4 22.3 20.3 19.6 94 100 5.5 8.8 1.8 3.6 11.0 107

Country Average* AS51 5,080 5,597 10 1,029,453 (1) (3) (1) (6) (4) Jun-15 (4) 5 10 15.1 15.7 15.0 13.7 99 94 5.3 10.9 1.6 1.7 8.8 43

Note: Prices are as of 9 December 2015

* Country/ sector aggregates are for the coverage above,

Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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China—valuation summary Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Dvd ROE P/B EV/ EV/ Net debt/ daily con. EPS Yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Automobiles & Components

Bin Wang / Mark Mao - 852 2101 6702 / 852 2101 6710

BAIC 1958 HK U HKD 7.50 5.60 (25) 7,350 3.5 (1) (5) 5 (16) na (0) (2) 10 (7) na Dec-14 (33) 47 15 10.5 15.7 10.7 9.3 69 77 3.2 8.8 1.4 0.6 5.8 7 BYD (A) 002594 CH O CNY 62.88 64.80 3 20,343 200.4 4 (0) (12) 65 59 4 2 (7) 62 42 Dec-14 516 21 41 359.1 58.3 48.3 34.3 109 111 0.0 10.0 5.6 2.3 15.1 71

BYD (H) 1211 HK O HKD 42.90 79.00 84 20,343 43.9 5 1 (13) 41 9 6 4 (8) 51 16 Dec-14 516 21 41 203.1 33.0 27.3 19.4 128 136 0.0 10.0 3.1 2.3 15.1 71 Brilliance 1114 HK O HKD 10.42 13.80 32 6,757 22.9 (2) 2 (2) (16) (21) (1) 5 4 (7) (14) Dec-14 (18) 30 20 8.1 9.9 7.6 6.4 112 116 0.8 23.3 2.1 8.8 nm 6 Changan Auto 000625 CH O CNY 16.74 27.00 61 9,800 181.3 6 6 4 2 3 6 9 9 (1) (13) Dec-14 23 19 6 10.3 8.4 7.0 6.6 94 93 1.8 32.7 2.4 0.9 19.8 13

Dongfeng 489 HK O HKD 10.84 15.30 41 12,051 25.7 6 1 (4) (1) (5) 6 4 1 9 2 Dec-14 (10) 10 7 6.0 6.7 6.1 5.7 95 96 2.2 14.7 0.9 0.4 13.8 (20) Fuyao Glass (A) 600660 CH O CNY 15.04 18.00 20 11,656 57.8 3 0 3 24 21 3 3 9 21 5 Dec-14 (9) 23 0 13.6 14.9 12.1 12.0 97 104 3.4 18.6 2.1 5.1 18.5 (13) Geely 175 HK O HKD 4.36 5.70 31 4,952 26.8 6 4 12 77 43 7 7 18 86 51 Dec-14 104 41 21 22.2 10.9 7.8 6.4 114 126 1.1 15.7 1.6 0.9 5.7 (27)

Greatwall Motor (A) 601633 CH N CNY 12.46 15.58 25 15,670 89.3 2 (3) 1 (40) (36) 2 (0) 7 (43) (52) Dec-14 12 11 2 14.1 12.6 11.3 11.1 96 92 2.4 24.6 2.9 1.3 7.2 (13) Greatwall Motor (H) 2333 HK O HKD 9.95 12.67 27 15,670 59.4 6 2 (2) (66) (63) 6 5 4 (56) (56) Dec-14 12 11 2 9.4 8.3 7.5 7.3 98 99 3.6 24.6 1.9 1.3 7.2 (13) Guangzhou Auto (A) 601238 CH N CNY 21.81 7.42 (66) 16,417 47.0 (1) 3 (7) 151 153 (1) 5 (1) 149 136 Dec-14 30 21 14 44.1 33.9 28.0 24.6 115 106 1.0 11.3 3.7 4.6 46.6 (6)

Guangzhou Auto (H) 2238 HK O HKD 7.30 9.00 23 16,417 13.4 4 (1) (2) 3 1 4 2 3 13 8 Dec-14 30 21 14 12.2 9.4 7.8 6.8 116 117 3.4 11.3 1.0 4.6 46.6 (6) Harmony Auto 3836 HK O HKD 5.99 8.80 47 1,218 6.4 (0) 2 (1) (8) 17 0 5 4 2 24 Dec-14 (21) 38 10 10.0 12.6 9.1 8.3 99 109 1.5 14.5 1.3 0.7 6.4 (10) Huayu 600741 CH O CNY 16.42 26.00 58 6,602 84.3 1 (2) (0) 6 6 1 0 6 4 (10) Dec-14 13 11 10 9.5 8.5 7.6 6.9 106 105 3.5 19.8 1.6 0.3 4.9 (38)

JAC Auto 600418 CH U CNY 15.10 7.00 (54) 3,439 113.0 3 1 (7) 25 30 3 3 (1) 22 14 Dec-14 92 (26) (18) 36.7 19.1 25.9 31.6 101 54 1.6 14.8 2.7 0.5 8.2 (19) Jiangling Auto 000550 CH O CNY 29.89 33.00 10 2,416 32.8 2 2 (0) (1) (5) 2 4 5 (4) (22) Dec-14 (4) 55 21 12.2 12.8 8.2 6.8 92 98 3.1 18.0 2.2 0.2 2.3 (80) Power Xinchen 1148 HK O HKD 1.75 2.60 49 290 0.5 (1) (1) (5) (28) (44) (0) 2 1 (18) (37) Dec-14 (13) (2) 13 6.9 8.0 8.1 7.2 77 74 0.0 9.1 0.7 0.8 4.8 12

SAIC 600104 CH O CNY 20.98 25.00 19 36,005 207.4 4 2 1 (2) (2) 4 4 6 (5) (19) Dec-14 (4) 14 6 8.3 8.6 7.6 7.1 92 96 5.8 16.3 1.4 0.3 6.8 (11) Weichai Power (A) 000338 CH U CNY 9.71 10.00 3 5,573 113.7 (2) (2) (5) (29) (21) (2) 0 1 (31) (38) Dec-14 (66) 46 11 7.7 23.1 15.8 14.2 55 68 2.2 5.1 1.2 0.5 4.2 3 Weichai Power (H) 2338 HK U HKD 7.96 6.00 (25) 5,573 6.6 1 (1) (6) (51) (51) 1 2 (1) (42) (44) Dec-14 (66) 46 11 5.3 15.7 10.7 9.7 94 112 3.2 5.1 0.8 0.5 4.2 3

Weifu 000581 CH O CNY 23.32 30.00 29 3,037 83.1 (1) (5) (5) (13) (17) (1) (2) 1 (16) (34) Dec-14 6 5 13 15.5 14.6 13.9 12.3 92 82 1.9 14.2 2.0 2.4 18.4 (18) Yutong Auto 600066 CH O CNY 20.77 32.00 54 7,158 74.0 1 (5) (7) 40 48 1 (2) (1) 37 32 Dec-14 (10) 15 6 11.7 13.0 11.3 10.7 108 107 3.8 30.2 3.7 1.3 8.2 (61) Sector* 31 170,733 4 1 (2) 1 (4) 4 4 3 11 4 Dec-14 1 18 10 10.6 10.5 8.9 8.1 98 101 3.1 16.4 1.5 0.7 9.6 (8)

Banks Sanjay Jain / Anson Huang - 65 6306 0668 / 852 2101 6823

ABC (A) 601288 CH N CNY 3.23 3.30 2 159,422 391.1 1 (0) (3) (13) 6 1 2 3 (15) (11) Dec-14 (1) (3) 10 5.8 5.9 6.1 5.5 99 94 5.6 17.0 0.9 na na na

ABC (H) 1288 HK O HKD 2.92 4.10 40 159,422 64.3 (1) (4) (8) (26) (22) (1) (1) (2) (16) (14) Dec-14 (1) (3) 10 4.4 4.4 4.5 4.1 100 93 7.5 17.0 0.7 na na na BCOM (A) 601328 CH N CNY 6.47 6.70 4 63,834 462.8 0 (3) (6) (5) 14 0 0 (1) (7) (3) Dec-14 0 (5) 12 7.3 7.3 7.7 6.9 101 95 4.1 13.4 0.9 na na na BCOM (H) 3328 HK O HKD 5.38 7.00 30 63,834 38.4 (0) (4) (6) (26) (21) 0 (1) (1) (16) (13) Dec-14 0 (5) 12 5.0 5.0 5.3 4.7 101 93 6.0 13.4 0.6 na na na

BOB 601169 CH N CNY 10.15 9.42 (7) 20,021 353.9 3 (0) 16 11 34 3 2 21 9 17 Dec-14 0 20 na 7.8 7.8 6.6 na 94 103 3.2 17.1 1.3 na na na BOC (A) 601988 CH N CNY 4.11 3.70 (10) 171,089 568.4 1 (2) (2) (1) 23 1 1 4 (3) 7 Dec-14 (2) (4) 9 6.8 6.9 7.2 6.6 101 94 4.8 15.3 1.0 na na na BOC (H) 3988 HK O HKD 3.36 4.50 34 171,089 191.2 (1) (5) (6) (23) (19) (1) (1) (1) (13) (12) Dec-14 (2) (4) 9 4.6 4.7 4.9 4.5 101 95 7.0 15.3 0.7 na na na

BOCQ 1963 HK O HKD 5.66 10.20 80 1,976 1.5 1 (2) (8) (6) (2) 1 1 (3) 4 5 Dec-14 16 8 19 4.5 3.9 3.6 3.0 111 113 6.7 22.3 0.7 na na na CCB (A) 601939 CH N CNY 5.81 5.80 (0) 170,296 207.2 1 (3) (3) (14) 5 1 0 3 (16) (11) Dec-14 1 (4) 9 6.4 6.3 6.6 6.0 100 93 5.5 17.4 1.0 na na na CCB (H) 939 HK O HKD 5.21 7.10 36 170,296 238.7 (1) (4) (7) (18) (14) (1) (0) (1) (8) (7) Dec-14 1 (4) 9 4.7 4.7 4.9 4.5 100 94 7.5 17.4 0.8 na na na

CEB (A) 601818 CH O CNY 4.30 4.70 9 29,774 285.7 0 (4) (9) (12) 8 0 (2) (4) (14) (9) Dec-14 (3) 2 19 6.9 7.1 7.0 5.9 95 92 3.8 14.9 0.9 na na na CEB (H) 6818 HK O HKD 3.50 5.80 66 29,774 8.5 0 (3) (12) (17) (17) 1 (0) (7) (7) (10) Dec-14 (3) 2 19 4.7 4.8 4.7 4.0 93 90 5.6 14.9 0.6 na na na CIB 601166 CH O CNY 16.20 17.60 9 48,042 605.4 0 (3) (4) (2) 27 0 (1) 2 (4) 10 Dec-14 6 3 15 6.5 6.2 6.0 5.2 99 95 3.2 18.6 1.0 na na na

CITIC (A) 601998 CH U CNY 7.50 4.90 (35) 46,598 208.1 1 (4) (2) (8) 18 1 (2) 4 (10) 1 Dec-14 (2) (2) 11 8.6 8.8 9.0 8.1 97 91 3.3 14.2 1.2 na na na CITIC (H) 998 HK O HKD 4.87 5.90 21 46,598 37.8 (1) (4) (7) (22) (17) (1) (1) (2) (12) (10) Dec-14 (2) (2) 11 4.6 4.7 4.8 4.4 98 92 6.0 14.2 0.6 na na na CMB (A) 600036 CH U CNY 17.39 15.60 (10) 66,336 453.1 (0) (3) (9) 5 33 (0) (0) (3) 2 17 Dec-14 4 1 14 7.8 7.6 7.5 6.6 98 91 3.9 17.3 1.3 na na na

CMB (H) 3968 HK U HKD 17.72 18.90 7 66,336 87.3 (1) (5) (17) (9) 9 (0) (2) (12) 1 16 Dec-14 4 1 14 6.6 6.4 6.3 5.5 98 92 4.6 17.3 1.1 na na na CRCB 3618 HK O HKD 4.47 7.80 74 5,364 7.3 (2) (4) (13) (7) (0) (2) (1) (7) 2 7 Dec-14 15 17 18 5.1 4.4 3.8 3.2 106 113 6.1 17.7 0.7 na na na HSB 3698 HK O HKD 3.30 5.10 55 4,705 1.4 (1) (4) (5) (5) (3) (1) (1) 1 4 4 Dec-14 12 11 11 5.3 4.7 4.3 3.9 106 109 6.5 16.5 0.7 na na na

HXB 600015 CH U CNY 11.25 9.60 (15) 18,712 154.8 1 (6) (4) 0 25 1 (3) 2 (2) 8 Dec-14 (6) (10) 13 5.6 5.9 6.6 5.8 105 91 3.2 17.1 1.0 na na na Harbin Bank 6138 HK O HKD 2.09 4.30 106 2,965 0.2 (1) (6) (12) (30) (28) (1) (3) (6) (20) (21) Dec-14 4 8 10 4.7 4.5 4.2 3.8 97 99 5.6 13.6 0.6 na na na ICBC (A) 601398 CH N CNY 4.66 4.60 (1) 246,519 352.6 1 (1) (3) (4) 11 1 1 3 (7) (6) Dec-14 (0) (5) 7 5.9 5.9 6.3 5.9 101 94 5.9 17.5 1.0 na na na

ICBC (H) 1398 HK N HKD 4.55 5.60 23 246,519 200.6 (2) (4) (7) (20) (15) (1) (1) (1) (10) (8) Dec-14 (0) (5) 7 4.8 4.8 5.1 4.8 101 94 7.3 17.5 0.8 na na na MSB (A) 600016 CH U CNY 8.71 7.80 (10) 46,658 450.1 0 (3) (5) (20) 5 0 0 1 (22) (12) Dec-14 3 1 14 6.7 6.5 6.4 5.7 104 100 2.3 17.7 1.1 na na na MSB (H) 1988 HK O HKD 7.37 9.50 29 46,658 34.1 (1) (3) (7) (28) (18) 0 (0) (2) (18) (11) Dec-14 3 1 14 4.7 4.5 4.5 4.0 104 100 3.3 17.7 0.7 na na na

NBCB 002142 CH N CNY 15.10 12.17 (19) 9,166 143.3 (1) (2) (5) 15 39 (1) 1 1 13 22 Dec-14 8 20 11 9.0 8.3 6.9 6.2 108 118 2.4 18.9 1.5 na na na NJCB 601009 CH N CNY 17.78 14.00 (21) 9,315 182.0 1 (4) (6) 21 44 1 (1) (0) 19 27 Dec-14 14 16 na 10.0 8.8 7.6 na 101 102 2.9 18.2 1.5 na na na PAB 000001 CH O CNY 11.99 13.50 13 26,704 249.8 0 (4) (7) (9) 5 0 (1) (2) (12) (12) Dec-14 (5) 9 23 6.9 7.3 6.7 5.5 103 102 1.5 15.6 1.1 na na na

SPDB 600000 CH N CNY 19.23 16.30 (15) 55,834 478.2 (4) (3) 6 23 52 (4) (0) 12 20 35 Dec-14 1 0 12 7.6 7.5 7.5 6.7 96 90 3.9 18.1 1.3 na na na Sector* 24 1,203,330 (1) (4) (6) (16) (8) (1) (1) (1) (7) (1) Dec-14 0 (2) 10 5.0 5.0 5.1 4.6 100 94 6.2 16.6 0.8 na na na

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China—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Dvd ROE P/B EV/ EV/ Net debt/ daily con. EPS Yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Building Materials & Construction

Trina Chen - 852 2101 7031

Anhui Conch (A) 600585 CH O CNY 16.63 22.10 33 13,900 175.7 0 (5) (11) (25) (15) 0 (3) (5) (27) (32) Dec-14 (29) (18) 67 8.0 11.2 13.7 8.2 90 70 3.3 11.5 1.3 1.8 6.5 6 Anhui Conch (H) 914 HK O HKD 21.15 28.00 32 13,900 36.3 (1) (6) (12) (27) (22) (1) (3) (6) (17) (15) Dec-14 (29) (18) 67 8.5 11.9 14.4 8.7 92 71 3.1 11.5 1.3 1.8 6.5 6

BBMG Corp (A) 601992 CH N CNY 10.08 9.20 (9) 7,308 60.2 0 (8) 9 (1) 16 0 (5) 15 (3) (1) Dec-14 (9) 44 14 19.4 21.4 14.9 13.0 102 109 0.5 7.0 1.5 2.0 16.3 83 BBMG Corp (H) 2009 HK O HKD 5.08 11.50 126 7,308 8.9 (1) (8) (14) (22) (17) (0) (5) (8) (12) (10) Dec-14 (9) 44 14 8.1 8.9 6.2 5.4 102 114 1.1 7.0 0.6 2.0 16.3 83 CNBM 3323 HK U HKD 3.86 3.70 (4) 2,689 20.2 (2) (9) (15) (49) (48) (1) (6) (10) (39) (41) Dec-14 (74) (64) 369 2.9 11.4 31.5 6.7 56 18 1.3 3.3 0.4 1.7 8.8 251

CNM 1893 HK N HKD 1.52 1.80 18 700 1.5 (1) (12) (21) (35) (33) (1) (9) (16) (25) (26) Dec-14 (43) (36) 286 8.9 15.6 24.3 6.3 62 32 0.6 2.1 0.3 0.6 4.7 83 CR Cement 1313 HK N HKD 2.43 3.00 23 2,048 5.8 0 (9) (20) (52) (52) 1 (6) (14) (42) (45) Dec-14 (68) (45) 227 3.8 11.9 21.7 6.6 60 31 1.3 4.7 0.6 1.2 9.2 60 Shanshui 691 HK U HKD 6.29 1.80 (71) 2,743 0.0 0 0 0 69 97 1 3 5 79 104 Dec-14 (548) nm nm 43.6 nm nm nm 15 nm 0.0 (18.7) 2.0 2.9 57.3 176

TCC International 1136 HK U HKD 1.44 1.20 (17) 919 1.0 (2) (2) (6) (49) (50) (1) 1 (1) (39) (42) Dec-14 (105) nm nm 2.7 nm nm 11.7 nm nm 0.0 (0.4) 0.3 1.2 10.8 32 WCC 2233 HK O HKD 1.60 2.00 25 1,119 9.5 (1) 0 11 95 105 (0) 3 17 105 112 Dec-14 148 545 36 167.2 67.3 10.4 7.7 68 153 0.3 1.7 1.0 2.4 8.7 32 Sector* 39 31,426 (1) (6) (11) (17) (11) (1) (3) (6) (8) (4) Dec-14 (52) (0) 83 7.0 14.6 14.6 8.0 74 63 1.9 5.2 0.8 1.6 9.0 102

Capital Goods Baiding Rong / Edmond Huang / James Zhang / Kelly Chen - 852 2101 6703 / 852 2101 6701 / 852 2101 6765 / 852 2101 7079

AVIC Aircraft 000768 CH U CNY 24.94 17.82 (29) 10,748 340.6 6 1 (14) 32 29 6 3 (8) 29 13 Dec-14 50 64 57 188.1 125.1 76.2 48.7 113 136 0.2 4.4 5.4 2.8 50.7 4

AVIC Aviation Engine 600893 CH U CNY 44.56 33.76 (24) 13,516 336.2 2 (0) (11) 54 45 2 3 (5) 51 29 Dec-14 49 35 26 92.7 62.3 46.2 36.6 123 133 0.2 9.4 5.7 2.7 26.2 51 AVIC Electronics 600372 CH O CNY 23.68 39.37 66 6,484 140.2 0 (5) (12) (14) (17) 0 (2) (6) (17) (34) Dec-14 28 30 31 69.4 54.1 41.6 31.7 114 119 0.3 14.0 7.1 5.6 31.6 43 AviChina 2357 HK O HKD 6.26 11.89 90 4,422 20.4 (3) (7) (5) 31 19 (3) (4) 0 41 27 Dec-14 18 28 30 36.4 30.7 24.1 18.5 109 112 0.5 8.3 2.4 1.0 8.0 8

Boer Power 1685 HK O HKD 15.00 20.73 38 1,498 3.1 (1) 1 10 124 101 (0) 4 16 134 108 Dec-14 37 23 17 20.6 15.0 12.2 10.5 99 96 3.2 26.0 3.7 2.8 9.3 (63) CCCC (A) 601800 CH U CNY 13.48 10.00 (26) 29,504 175.0 0 (8) (19) (3) 65 0 (6) (13) (5) 48 Dec-14 13 15 15 17.3 15.3 13.4 11.6 92 96 1.7 11.7 1.7 0.9 10.4 138 CCCC (H) 1800 HK O HKD 8.50 11.80 39 29,504 41.3 (1) (8) (20) (9) 10 (1) (5) (14) 1 17 Dec-14 13 15 15 9.1 8.0 7.0 6.1 95 98 3.2 11.7 0.9 0.9 10.4 138

COMEC (A) 600685 CH U CNY 35.56 26.04 (27) 5,764 73.5 1 (3) (15) (0) 6 1 (0) (9) (3) (11) Dec-14 90 149 23 241.9 127.5 51.3 41.6 775 265 0.1 4.8 4.7 1.4 41.4 (23) COMEC (H) 317 HK N HKD 15.94 32.37 103 5,764 12.4 (1) (9) (14) (28) (32) (1) (6) (8) (19) (24) Dec-14 90 149 23 89.9 47.4 19.0 15.5 775 265 0.3 4.8 1.7 1.4 41.4 (23) CRCC (A) 601186 CH U CNY 13.67 8.90 (35) 27,252 310.0 0 (6) (17) (10) 40 0 (3) (11) (13) 23 Dec-14 9 (4) 0 16.0 14.7 15.3 15.2 97 87 1.1 11.9 1.7 0.4 7.7 64

CRCC (H) 1186 HK U HKD 10.36 10.50 1 27,252 22.0 (1) (3) (12) 5 10 (0) 0 (6) 15 17 Dec-14 9 (4) 0 10.0 9.2 9.6 9.6 97 86 1.8 11.9 1.1 0.4 7.7 64 CRG (A) 601390 CH U CNY 11.03 6.10 (45) 35,428 508.4 (0) (5) (17) 19 105 (0) (3) (12) 16 88 Dec-14 13 0 5 21.2 18.8 18.7 17.9 110 100 0.7 12.1 2.1 0.5 12.2 83 CRG (H) 390 HK N HKD 6.32 7.20 14 35,428 32.1 (1) (5) (12) (1) 12 (1) (2) (6) 9 19 Dec-14 13 0 5 10.1 8.9 8.9 8.5 110 101 1.5 12.1 1.0 0.5 12.2 83

CRRC (A) 601766 CH U CNY 13.07 8.80 (33) 52,309 1,172.1 0 (5) (13) 105 125 0 (2) (7) 102 109 Dec-14 8 21 12 32.9 30.6 25.3 22.6 96 101 0.7 12.4 3.6 1.4 13.7 (6) CRRC (H) 1766 HK N HKD 10.08 10.30 2 52,309 61.6 (1) (4) 2 (3) 28 (0) (1) 7 6 35 Dec-14 8 21 12 21.0 19.5 16.2 14.4 95 99 1.1 12.4 2.3 1.4 13.7 (6) CSIC 601989 CH O CNY 9.75 13.87 42 27,866 1,082.7 (1) (6) (16) 6 27 (1) (3) (11) 3 10 Dec-14 25 39 33 78.7 62.9 45.4 34.1 163 130 0.5 4.6 2.9 2.4 30.1 (27)

Changyuan 600525 CH U CNY 18.73 10.50 (44) 3,178 73.3 (0) (3) (6) 63 50 (0) (1) (0) 60 34 Dec-14 20 20 na 45.9 38.3 32.0 na 95 84 0.8 14.5 5.3 5.6 34.4 28 China High Speed 658 HK N HKD 6.18 7.80 26 1,304 7.3 (3) (9) (9) 28 32 (2) (6) (4) 38 39 Dec-14 197 (2) 5 24.9 8.4 8.5 8.1 107 95 0.0 10.9 0.9 1.5 5.3 57 China Spacesat 600118 CH N CNY 43.00 38.40 (11) 7,915 385.5 1 (3) (18) 51 73 1 (0) (12) 48 56 Dec-14 13 17 18 142.7 126.6 108.6 92.0 97 94 0.2 9.0 11.0 8.9 91.0 (62)

China XD 601179 CH O CNY 6.51 11.40 75 5,194 97.7 (0) (5) (12) (16) 1 (0) (2) (6) (19) (16) Dec-14 33 72 9 51.9 39.1 22.7 20.8 105 122 0.8 4.7 1.8 1.8 18.7 (38) Dongfang Electric (A) 600875 CH U CNY 13.40 6.00 (55) 5,220 142.9 (2) (4) (11) (35) (23) (2) (1) (6) (38) (39) Dec-14 (75) 22 25 23.1 91.8 75.0 60.1 34 41 0.1 1.7 1.6 0.6 21.0 (54) Dongfang Electric (H) 1072 HK U HKD 7.88 7.10 (10) 5,220 4.5 (3) (4) (11) (45) (38) (2) (1) (6) (35) (31) Dec-14 (75) 22 25 11.3 44.8 36.6 29.3 42 47 0.2 1.7 0.8 0.6 21.0 (54)

GCL-Poly 3800 HK O HKD 1.42 2.20 55 2,838 17.0 (1) (5) (13) (21) (20) (0) (2) (7) (11) (12) Dec-14 (3) 37 23 11.0 11.4 8.3 6.8 96 91 6.0 10.4 1.2 2.0 6.9 238 Goldwind (A) 002202 CH O CNY 18.29 22.40 22 7,229 166.8 10 5 11 29 57 10 8 16 27 40 Dec-14 77 14 14 28.4 16.1 14.1 12.3 111 112 3.2 19.4 2.9 2.1 11.4 36 Goldwind (H) 2208 HK O HKD 13.40 26.30 96 7,229 9.9 2 (3) 2 11 22 2 (0) 8 21 29 Dec-14 77 14 14 17.3 9.8 8.5 7.5 109 113 5.3 19.4 1.8 2.1 11.4 36

Guodian Nari 600406 CH N CNY 14.81 16.00 8 5,599 170.7 (1) (6) (16) 2 (7) (1) (3) (10) (1) (24) Dec-14 (22) 42 14 28.5 36.6 25.8 22.6 108 105 0.8 13.1 4.6 3.8 29.6 (48) Haite High-tech 002023 CH U CNY 18.09 14.20 (22) 2,131 91.6 (0) (5) (6) 64 44 (0) (2) (0) 62 27 Dec-14 10 38 43 77.2 70.2 51.0 35.6 140 110 0.3 10.0 6.7 25.0 47.1 40 Han's Laser 002008 CH O CNY 25.78 32.00 24 4,191 165.1 2 7 (3) 61 55 2 9 3 59 38 Dec-14 13 26 8 42.4 37.6 29.8 27.6 96 88 0.8 16.5 5.8 4.6 35.8 (12)

Harbin Electric 1133 HK U HKD 3.61 3.40 (6) 641 2.5 (4) (8) (18) (26) (23) (3) (5) (13) (16) (16) Dec-14 nm nm nm nm nm nm 194.4 9 nm 0.0 (4.7) 0.3 (0.3) nm (79) Hollysys HOLI US O USD 21.27 29.10 37 1,241 1.8 0 4 (1) (13) (12) 1 7 5 (3) (5) Jun-15 7 12 11 12.4 11.6 10.4 9.4 98 101 1.8 17.5 1.8 1.9 7.4 (32) Inovance Tech 300124 CH N CNY 44.76 53.00 18 5,510 103.1 1 2 (10) 53 67 1 5 (5) 51 50 Dec-14 28 22 24 55.1 43.2 35.4 28.4 95 91 0.7 21.6 8.6 12.1 44.2 (51)

JONHON 002179 CH O CNY 39.00 37.46 (4) 3,658 153.1 1 (1) (5) 116 88 1 1 1 113 72 Dec-14 37 31 28 69.2 50.4 38.5 30.1 87 85 0.3 15.2 7.2 5.2 31.2 4 Linyang Electronics 601222 CH N CNY 39.26 32.50 (17) 2,485 23.3 1 7 14 73 67 1 10 20 71 50 Dec-14 18 32 12 34.5 29.3 22.2 19.8 97 98 0.7 12.6 3.1 4.8 20.8 (26) Pinggao Electric 600312 CH U CNY 17.87 18.00 1 3,164 76.0 (1) (5) (12) 20 18 (1) (2) (7) 18 1 Dec-14 21 50 6 29.1 24.1 16.1 15.1 95 108 1.3 13.7 3.1 3.8 15.1 2

SEG 2386 HK U HKD 6.10 5.50 (10) 3,485 3.8 (3) (1) (3) 16 3 (2) 2 2 26 10 Dec-14 (11) (2) (1) 6.4 7.2 7.4 7.4 95 89 5.5 13.1 0.9 0.2 2.6 (47) SIASUN 300024 CH U CNY 71.60 41.50 (42) 7,904 328.0 (1) (4) (16) 82 93 (1) (1) (10) 79 77 Dec-14 19 16 41 181.6 152.3 131.2 92.8 77 67 0.1 8.8 9.6 26.9 118.4 (40) SMEIC 600835 CH N CNY 28.15 28.30 1 3,534 64.4 (1) (5) (9) 50 60 (1) (2) (3) 48 44 Dec-14 79 (5) 6 32.3 18.1 18.9 17.9 90 89 2.8 22.5 3.6 0.5 5.2 (124)

Senyuan Electric 002358 CH N CNY 17.16 12.50 (27) 2,125 87.7 1 (3) 1 (2) (2) 1 (0) 7 (4) (18) Dec-13 14 43 32 27.5 24.2 16.9 12.9 215 146 0.5 14.1 3.2 7.5 32.0 17 Shanghai Electric (A) 601727 CH R CNY 13.19 21,993 330.3 (3) 17 17 60 85 (3) 20 23 57 69 Dec-14 (27) 13 10 69.7 96.0 85.0 77.3 74 79 0.4 4.7 4.2 1.5 19.6 (50) Shanghai Electric (H) 2727 HK R HKD 4.61 21,993 31.5 (8) (4) (4) 12 8 (8) (1) 1 21 15 Dec-14 (27) 13 10 20.2 27.8 24.6 22.4 73 79 1.4 4.7 1.2 1.5 19.6 (50)

Sifang Automation 601126 CH U CNY 13.73 7.50 (45) 1,738 29.0 (2) (5) (14) 59 46 (2) (3) (9) 56 30 Dec-14 14 15 na 15.5 13.5 11.8 na 216 196 1.1 11.5 1.5 2.8 33.3 (13) Singyes 750 HK O HKD 5.11 10.90 113 458 4.8 (8) (9) (18) (53) (50) (7) (6) (13) (43) (43) Dec-14 33 36 19 7.2 5.4 4.0 3.3 88 101 1.6 17.9 0.8 0.9 4.2 60 Sinopec Kantons 934 HK O HKD 4.03 8.10 101 1,293 2.1 (1) (2) (7) (35) (34) (1) 1 (2) (25) (26) Dec-14 12 49 22 14.4 12.8 8.6 7.1 86 92 1.4 7.5 0.9 1.3 36.6 40

TBEA 600089 CH O CNY 11.35 14.20 25 5,740 185.4 (1) (6) (12) (8) 2 (1) (3) (7) (11) (14) Dec-14 45 37 30 26.1 18.0 13.1 10.1 99 94 1.9 9.7 1.6 1.1 9.8 26 Tian He Defense 300397 CH U CNY 87.75 51.51 (41) 1,639 57.7 (2) (5) (5) 7 (5) (2) (2) 0 4 (21) Dec-14 83 (10) 27 139.9 76.4 85.2 67.1 100 100 0.3 10.2 7.4 28.1 60.9 (40) Tianwei Baobian 600550 CH U CNY 8.76 2.45 (72) 2,092 48.6 (1) 10 7 31 22 (1) 13 12 28 5 Dec-14 nm 133 7 nm 170.7 73.2 68.3 25 48 0.0 7.4 11.0 4.1 26.5 234

Wasion Group 3393 HK O HKD 8.61 13.50 57 1,141 3.2 (3) (5) (2) 19 14 (3) (2) 3 29 22 Dec-14 28 23 21 14.4 11.2 9.1 7.5 100 102 3.4 17.1 1.7 2.1 8.7 5 Weihai Guangtai 002111 CH N CNY 30.96 26.56 (14) 1,740 38.3 0 (1) (6) 92 57 0 2 (1) 89 40 Dec-14 101 36 28 85.6 42.7 31.5 24.6 141 143 0.6 15.7 5.4 7.3 29.3 13 XJ Electric 000400 CH O CNY 17.93 23.00 28 2,814 89.9 (1) (5) (14) (12) (16) (1) (3) (8) (14) (32) Dec-14 (53) 158 34 19.3 41.4 16.0 12.0 59 99 0.2 7.4 3.0 2.4 25.1 (4)

Zhuzhou CSR 3898 HK O HKD 47.85 75.00 57 7,258 23.3 (1) (4) (3) 6 43 0 (1) 2 16 51 Dec-14 14 20 15 20.4 17.9 14.9 13.0 94 100 1.1 21.6 3.5 3.2 13.1 (25) Sector* 16 341,244 (1) (4) (9) 12 22 (0) (1) (4) 22 29 Dec-14 10 14 12 19.0 17.3 15.1 13.4 99 98 1.3 10.6 1.7 1.0 13.4 36

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China—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Dvd ROE P/B EV/ EV/ Net debt/ daily con. EPS Yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Chemicals Kenneth Whee - 852 2101 7319

Wanhua Chemical 600309 CH O CNY 17.40 27.70 59 5,856 73.8 (0) (3) (8) (20) (14) (0) (1) (3) (23) (30) Dec-14 101 11 (10) 15.6 7.8 7.0 7.8 173 142 6.8 37.3 2.4 2.0 5.9 121

Conglomerates Baoying Zhai / Kenneth Fong - 852 2101 7135 / 852 2101 6395

CITIC 267 HK N HKD 13.80 14.70 7 51,799 49.3 0 (2) (4) 4 0 1 1 2 14 7 Dec-14 34 (16) 10 8.6 6.5 7.7 7.0 101 93 1.5 13.1 0.8 1.6 4.0 36 Fousn 656 HK O HKD 13.48 18.80 39 14,975 39.3 (0) (6) (11) 33 28 0 (3) (6) 42 35 Dec-14 (1) 25 13 11.0 11.1 8.9 7.8 85 94 1.1 13.5 1.4 1.9 8.9 69

Legend 3396 HK N HKD 30.85 32.20 4 9,379 9.5 (2) (3) 0 na na (1) (0) 6 na na Dec-14 (26) 64 30 12.3 16.7 10.2 7.8 94 111 0.2 9.0 1.3 0.3 12.7 60 SIHL 363 HK O HKD 20.45 26.90 32 2,865 6.0 1 (2) (2) (12) (13) 1 1 4 (2) (6) Dec-14 (11) 1 10 7.2 8.1 8.1 7.4 105 97 4.3 7.3 0.6 2.1 5.4 33 Sector* 13 79,019 0 (3) (5) 10 6 1 0 1 20 13 Dec-14 22 (4) 14 9.2 7.6 8.2 7.3 98 94 1.4 12.5 0.9 1.1 5.0 41

Consumer Durables & Apparel

Eva Wang / Kevin Yin - 852 2101 7365 / 852 2101 7655

Anta Sports 2020 HK O HKD 23.05 22.50 (2) 7,438 13.6 (1) (2) 7 69 80 (1) 1 12 79 87 Dec-14 17 14 12 28.1 24.1 21.2 18.9 98 95 3.1 24.2 5.5 4.1 16.8 (49) Belle 1880 HK N HKD 6.70 8.30 24 7,291 21.1 1 (5) (9) (23) (21) 1 (2) (4) (13) (14) Feb-15 0 1 6 9.9 9.8 9.8 9.2 99 98 6.2 19.2 1.9 1.1 6.1 (6) Gree 000651 CH O CNY 20.80 24.00 15 19,477 406.9 4 (1) 6 12 20 4 2 12 10 3 Dec-14 (6) (2) 5 8.8 9.4 9.6 9.1 93 83 6.4 28.7 2.6 0.6 4.5 (113)

Haier Elec 1169 HK O HKD 14.44 20.00 39 5,204 11.0 1 (2) 1 (22) (27) 1 1 6 (12) (20) Dec-14 8 0 6 13.3 12.3 12.3 11.6 97 91 0.8 21.0 2.3 0.4 7.5 (60) Hisense Electric 600060 CH N CNY 17.94 17.30 (4) 3,654 107.7 (4) 1 1 57 50 (4) 4 7 54 34 Dec-14 (1) 8 8 16.8 16.9 15.5 14.4 96 93 1.8 12.3 2.0 0.6 11.9 (32) Hisense Kelon(A) 000921 CH U CNY 10.00 4.00 (60) 1,632 18.8 0 (2) 9 20 17 0 0 15 17 (0) Dec-14 (38) 29 7 20.2 32.5 25.2 23.6 57 58 0.0 11.4 3.5 0.5 23.0 (1)

Li Ning 2331 HK U HKD 4.01 2.00 (50) 976 3.8 (0) (5) (4) 17 18 0 (2) 2 26 25 Dec-14 nm 4 50 nm 40.5 38.8 25.9 257 48 0.0 5.7 2.0 0.8 16.7 (15) Midea 000333 CH O CNY 28.51 41.00 44 18,930 158.5 1 (3) (6) 4 15 1 (0) (0) 1 (1) Dec-14 17 10 15 11.4 9.8 8.9 7.7 99 93 4.1 28.0 2.5 0.8 7.3 (10) Peak Sport 1968 HK O HKD 2.30 2.60 13 709 3.2 (2) (6) (4) 7 13 (2) (3) 1 17 21 Dec-14 13 4 12 12.5 11.1 10.7 9.5 101 97 7.2 8.5 0.9 1.0 5.3 (28)

QD Haier 600690 CH N CNY 9.92 9.80 (1) 9,455 167.9 0 0 0 7 8 0 3 6 4 (8) Dec-14 (22) 12 10 11.4 14.6 13.1 11.9 86 84 2.1 17.9 2.5 0.4 5.7 (79) Shenzhou 2313 HK O HKD 41.85 42.00 0 7,555 12.8 2 5 3 65 67 2 8 8 75 74 Dec-14 13 18 17 24.0 21.2 17.9 15.3 98 99 2.5 19.3 3.7 3.9 15.9 1 Skyworth 751 HK O HKD 5.01 8.10 62 1,885 10.3 2 (1) 3 19 19 3 2 8 29 27 Mar-15 (39) 6 5 4.5 7.4 7.0 6.7 101 96 4.2 13.8 0.9 0.4 4.9 6

Stella 1836 HK N HKD 19.90 21.60 9 2,040 0.9 0 3 1 (3) (2) 1 6 6 7 5 Dec-14 7 13 10 16.9 15.7 13.9 12.6 99 95 4.5 13.3 2.1 1.0 9.7 (19) TCL Corp 000100 CH N CNY 4.00 4.50 13 7,598 269.7 (1) (0) (6) 5 11 (1) 2 (1) 3 (5) Dec-14 (21) 18 22 11.5 14.6 12.3 10.1 100 101 2.0 14.6 1.9 0.6 10.2 55 Texhong 2678 HK N HKD 5.49 8.50 55 627 0.6 1 (3) (5) (7) (1) 1 0 0 3 6 Dec-14 97 12 6 13.1 6.7 5.9 5.6 99 85 4.5 16.4 1.0 0.6 4.7 69

Sector* 16 94,470 1 (1) (0) 15 20 1 2 5 25 28 Dec-14 1 6 11 12.2 12.0 11.3 10.2 96 90 3.9 21.3 2.4 0.8 7.6 (30)

Consumer Staples Kevin Yin / Simon Sun - 852 2101 7655 / 852 2101 7652

Bright Dairy 600597 CH U CNY 14.96 12.00 (20) 2,866 70.2 (1) (5) (11) (14) (7) (1) (2) (6) (17) (23) Dec-14 (31) 61 19 32.4 46.9 29.1 24.4 66 81 1.3 8.5 3.9 0.8 14.0 (4) China Modern Dairy 1117 HK U HKD 2.13 1.95 (8) 1,458 2.8 (2) (0) (2) (4) 5 (2) 3 4 6 13 Dec-14 (27) 13 11 10.4 14.2 12.6 11.4 69 70 0.0 8.8 1.2 3.3 12.6 86 China Res Beer 291 HK N HKD 14.82 16.00 8 4,653 18.3 (1) (3) 6 76 82 (1) 0 12 86 90 Dec-14 (54) 16 22 17.4 38.0 32.9 27.0 96 98 1.1 3.3 2.5 1.9 13.6 9

Haitian Flavouring 603288 CH O CNY 35.32 41.00 16 14,878 34.4 (1) 0 0 59 59 (1) 3 6 57 42 Dec-14 21 21 23 45.7 37.9 31.4 25.5 97 99 1.6 30.6 10.8 8.0 27.8 (71) Hengan 1044 HK N HKD 78.30 82.00 5 12,306 25.0 (0) 0 (5) (3) (2) 0 3 1 6 5 Dec-14 10 14 14 24.6 22.3 19.6 17.2 103 105 2.9 23.5 5.0 3.8 12.7 (7) Kweichow Moutai 600519 CH O CNY 214.5 270.0 26 41,936 194.1 1 (3) (3) 24 36 1 (1) 3 22 20 Dec-14 (2) 13 15 16.0 16.2 14.3 12.5 99 102 1.9 28.0 4.1 6.7 9.6 (61)

Luzhou Laojiao 000568 CH N CNY 24.26 28.00 15 5,280 119.1 0 (2) (3) 19 25 0 0 3 16 9 Dec-14 84 21 6 38.7 21.0 17.4 16.5 102 103 2.1 15.9 3.2 4.5 12.1 (52) Mengniu Dairy 2319 HK O HKD 12.86 17.20 34 6,511 26.4 (1) 4 (7) (20) (11) (0) 7 (2) (10) (4) Dec-14 3 5 13 17.7 17.2 16.4 14.6 92 90 7.0 11.0 1.9 0.8 10.4 (5) Shanxi Fen Wine 600809 CH N CNY 16.75 20.54 23 2,257 37.7 0 (4) (8) (27) (21) 0 (1) (3) (29) (38) Dec-14 22 21 10 40.8 33.4 27.6 25.1 107 107 0.9 10.7 3.5 3.2 19.9 (33)

Shuanghui Development 000895 CH O CNY 19.29 27.00 40 9,911 80.6 1 (2) (4) (8) (5) 1 1 1 (11) (22) Dec-14 (32) 7 10 10.5 15.5 14.5 13.2 96 93 1.9 24.3 3.5 1.3 9.9 (23) Tingyi 322 HK N HKD 11.08 12.70 15 8,010 13.4 (1) (2) (15) (37) (38) 0 1 (10) (28) (30) Dec-14 (10) 10 14 20.0 22.3 20.3 17.8 92 89 2.2 11.4 2.4 0.9 7.2 25 Tsingtao Brewery (A) 600600 CH N CNY 31.14 33.00 6 6,167 45.2 (2) (4) (12) (25) (26) (2) (2) (6) (28) (42) Dec-14 (20) 4 6 21.1 26.6 25.6 24.1 89 87 1.2 9.9 2.6 1.2 13.9 (38)

Tsingtao Brewery (H) 168 HK N HKD 33.05 37.00 12 6,167 10.9 (2) (4) (10) (37) (40) (2) (1) (5) (27) (33) Dec-14 (20) 4 6 18.6 23.4 22.5 21.2 90 88 1.3 9.9 2.2 1.2 13.9 (38) Vinda Int'l 3331 HK O HKD 14.90 16.30 9 1,921 1.8 0 (5) (5) 30 32 1 (2) (0) 40 39 Dec-14 6 26 28 25.1 23.6 18.8 14.7 102 98 1.2 11.9 2.7 1.9 13.3 75 WH Group 288 HK O HKD 3.98 6.20 56 7,523 11.5 2 (2) (4) (10) (8) 2 1 1 (1) (1) Dec-14 (15) 12 10 7.9 9.3 8.3 7.5 103 103 2.5 15.2 1.4 0.5 6.7 49

Want Want 151 HK N HKD 5.72 7.50 31 9,522 18.6 (1) (6) (8) (44) (44) (1) (3) (3) (34) (37) Dec-14 5 10 6 15.7 15.0 13.7 12.9 98 106 4.7 30.2 4.3 2.4 9.2 (22) Wuliangye 000858 CH O CNY 24.87 33.00 33 14,695 295.7 0 (3) (7) 16 26 0 (0) (2) 13 9 Dec-14 4 16 22 16.2 15.5 13.4 11.0 102 106 2.3 14.7 2.2 3.1 7.6 (63) Yanghe Brewery 002304 CH O CNY 64.40 85.00 32 15,106 56.6 0 (5) (7) 14 34 0 (2) (2) 12 18 Dec-14 (18) 18 19 15.4 18.8 15.9 13.4 97 100 2.4 24.4 4.3 5.7 12.6 (29)

Yanjing Brewry 000729 CH N CNY 7.81 8.70 11 3,426 49.8 (1) (3) (10) (2) 6 (1) (0) (4) (5) (11) Dec-14 (7) 2 4 30.2 32.4 31.8 30.5 92 85 1.0 5.4 1.7 1.8 12.4 (6) Yili 600887 CH O CNY 14.80 20.00 35 13,971 294.7 (0) (4) (9) 3 10 (0) (1) (3) 1 (6) Dec-14 3 14 18 21.7 21.1 18.6 15.7 88 84 2.4 21.6 4.3 1.4 11.9 (43) Sector* 25 182,398 0 (3) (5) 8 15 1 0 0 18 23 Dec-14 (6) 14 15 17.6 18.7 16.4 14.2 97 98 2.3 17.8 3.2 1.9 10.7 (19)

Diversified Financials Sanjay Jain / Charles Zhou / Kelvin Tam - 65 6306 0668 / 852 2101 6177 / 852 2101 6582

CM Securities 600999 CH U CNY 20.73 16.00 (23) 18,741 244.3 0 (6) (10) (27) (22) 0 (4) (5) (29) (39) Dec-14 139 (40) 9 28.2 11.8 19.5 17.9 101 71 3.4 22.4 2.4 na na na

China Galaxy 6881 HK O HKD 6.95 9.90 42 8,553 42.2 2 (4) (11) (29) (28) 2 (1) (5) (19) (20) Dec-14 93 (40) 20 11.5 6.0 9.9 8.3 107 81 6.7 20.2 1.0 na na na Cinda 1359 HK O HKD 2.80 4.89 75 13,099 33.6 0 (4) (8) (26) (27) 1 (1) (3) (16) (20) Dec-14 31 20 16 6.8 5.2 4.3 3.7 106 110 5.5 16.4 0.8 na na na Citic Securities (A) 600030 CH N CNY 17.79 19.50 10 32,347 1,004.9 1 (5) (13) (48) (33) 1 (3) (7) (50) (50) Dec-14 50 (23) 17 17.3 11.6 15.0 12.8 102 81 1.3 14.9 1.6 na na na

Citic Securities (H) 6030 HK O HKD 17.36 23.50 35 32,347 72.9 (1) (7) (11) (41) (41) (0) (4) (5) (31) (34) Dec-14 50 (23) 17 14.0 9.4 12.1 10.3 98 71 1.6 14.9 1.3 na na na EB Securities 601788 CH U CNY 22.25 14.00 (37) 13,530 255.8 0 (7) (13) (22) (21) 0 (4) (8) (25) (38) Dec-14 212 (49) 15 36.8 11.8 23.2 20.3 112 64 1.8 21.8 2.3 na na na GF Securities (A) 000776 CH N CNY 19.30 18.80 (3) 22,003 249.9 (0) (2) 0 (26) (23) (0) 1 6 (28) (39) Dec-14 119 (37) 10 24.4 11.2 17.7 16.0 105 79 0.7 20.3 1.7 na na na

GF Securities (H) 1776 HK O HKD 19.22 22.50 17 22,003 26.5 (2) (2) 8 na na (1) 1 14 na na Dec-14 119 (37) 10 20.1 9.2 14.6 13.2 103 84 0.8 20.3 1.4 na na na HH 3903 HK O HKD 1.04 1.80 73 617 0.3 1 (1) (2) (19) (22) 2 2 4 (9) (15) Dec-14 46 19 na 4.6 3.1 2.6 na 163 164 7.9 16.4 0.5 na na na HT Securities (A) 601688 CH U CNY 18.97 16.60 (12) 20,111 310.5 (0) (5) (10) (22) (21) (0) (2) (5) (25) (38) Dec-14 99 (34) 5 23.7 11.9 18.0 17.2 106 76 2.4 17.1 1.8 na na na

HT Securities (H) 6886 HK N HKD 18.20 20.30 12 20,111 25.4 (1) (6) (7) na na (1) (3) (2) na na Dec-14 99 (34) 5 18.8 9.5 14.3 13.6 109 79 3.0 17.1 1.4 na na na Haitong Securities (A) 600837 CH U CNY 15.18 15.20 0 24,743 534.9 1 (5) (13) (37) (28) 1 (2) (7) (39) (45) Dec-14 78 (32) 10 18.9 10.6 15.7 14.2 110 80 1.4 17.2 1.6 na na na Haitong Securities (H) 6837 HK O HKD 12.78 18.50 45 24,743 86.7 (1) (8) (15) (35) (35) (1) (5) (9) (25) (28) Dec-14 78 (32) 10 13.2 7.4 10.9 9.9 110 80 2.0 17.2 1.1 na na na

Kaisa 1638 HK R HKD 1.56 1,034 0.0 0 0 0 (2) (31) 1 3 5 8 (24) na na na na na na na na na na na na na na na Sinolink 600109 CH U CNY 15.08 6.00 (60) 7,099 306.4 0 (5) (14) (24) (29) 0 (3) (8) (26) (46) Dec-14 117 (39) 21 46.7 21.5 35.4 29.2 103 61 0.3 16.2 2.8 na na na Sector* 17 161,877 (1) (6) (8) (31) (31) (0) (2) (3) (21) (24) Dec-14 79 (26) 13 15.5 8.7 11.7 10.5 105 82 2.5 17.7 1.4 na na na

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China—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Energy Thomas Wong / David Hewitt / Kelly Chen / Horace Tse / Kenneth Whee - 852 2101 6738 / 65 6212 3064 / 852 2101 7079 / 852 2101 7379 / 852 2101 7319

AAG 2686 HK O HKD 1.32 2.50 89 567 0.8 (3) (1) (14) na na (2) 2 (8) na na Dec-14 80 40 52 19.1 10.6 7.6 5.0 136 135 0.0 9.2 0.8 2.1 2.4 (44) Anton Oil 3337 HK U HKD 0.79 0.80 1 226 0.7 (1) (7) (23) (53) (50) (1) (4) (18) (43) (43) Dec-14 nm nm nm nm nm nm nm 58 nm 0.0 (8.1) 0.8 1.8 11.6 80 CNOOC 883 HK O HKD 8.42 10.70 27 48,507 92.4 1 (5) (4) (19) (16) 2 (2) 2 (10) (9) Dec-14 (66) 30 24 5.2 15.1 11.6 9.4 95 107 5.8 5.7 0.9 2.3 4.2 29

COOEC 600583 CH O CNY 8.91 13.50 52 6,132 219.3 (1) (5) (15) (15) 3 (1) (2) (10) (18) (13) Dec-14 (29) 32 1 9.3 13.0 9.9 9.8 102 132 1.5 13.9 1.7 2.0 6.9 (32) COSL (A) 601808 CH U CNY 15.73 9.50 (40) 8,889 96.7 1 (3) (13) (24) (15) 1 (1) (7) (27) (32) Dec-14 (86) 142 35 10.0 69.3 28.7 21.2 48 90 0.3 2.3 1.6 3.2 11.8 46 COSL (H) 2883 HK O HKD 7.02 11.50 64 8,889 14.8 (1) (10) (18) (48) (46) (1) (7) (12) (38) (39) Dec-14 (86) 142 35 3.7 25.6 10.6 7.8 40 86 0.8 2.3 0.6 3.2 11.8 46

GDG GDG LN O GBp 2.56 9.91 287 600 0.1 0 0 (2) (34) (39) 1 3 4 (25) (32) Dec-14 nm nm nm nm nm nm 18.4 42 nm 0.0 (2.3) 1.0 5.7 23.9 14 Guanghui 600256 CH U CNY 6.59 5.20 (21) 5,356 156.9 (0) (5) (8) (21) (21) (0) (2) (2) (24) (37) Dec-14 (72) 13 86 20.9 75.9 66.9 36.0 44 33 0.4 3.3 2.0 8.0 19.9 57 Hilong 1623 HK N HKD 1.43 1.75 22 313 0.5 (1) (2) (12) (21) (20) (0) 1 (6) (11) (13) Dec-14 (44) 47 22 4.8 8.6 5.9 4.8 80 102 2.0 7.8 0.7 1.5 6.8 58

PetroChina (A) 601857 CH N CNY 8.35 4.40 (47) 224,690 311.8 (0) (3) (10) (23) (12) (0) (1) (4) (25) (29) Dec-14 (66) 22 42 14.3 41.3 33.9 23.8 72 74 1.1 3.6 1.5 1.4 8.0 43 PetroChina (H) 857 HK N HKD 5.23 5.60 7 224,690 90.1 (1) (8) (12) (39) (37) (1) (5) (7) (29) (29) Dec-14 (66) 22 42 7.4 21.5 17.6 12.4 75 78 2.1 3.6 0.8 1.4 8.0 43 SPT Energy 1251 HK U HKD 0.71 0.45 (37) 141 0.4 (3) (3) (8) (50) (51) (2) 0 (2) (41) (44) Dec-14 (392) nm nm 7.8 nm nm nm 73 11 0.0 (21.2) 0.6 0.8 nm (0)

Sinopec (A) 600028 CH U CNY 4.89 5.50 12 87,745 360.8 (0) (4) (9) (25) (17) (0) (1) (3) (27) (34) Dec-14 (23) 44 19 12.3 15.9 11.0 9.3 84 106 2.5 6.0 0.9 0.3 5.4 45 Sinopec (H) 386 HK O HKD 4.56 5.70 25 87,745 74.5 0 (7) (16) (27) (27) 1 (4) (11) (17) (19) Dec-14 (23) 44 19 9.5 12.3 8.5 7.2 89 106 3.3 6.0 0.7 0.3 5.4 45 Sinopec Shanghai Petrochem (A)

600688 CH U CNY 6.30 3.70 (41) 8,417 188.1 1 (5) (17) 45 55 1 (2) (12) 43 38 Dec-14 nm 2 7 nm 24.9 24.4 22.9 94 94 1.2 15.3 3.5 0.8 9.0 7

Sinopec Shanghai Petrochem (H)

338 HK O HKD 2.78 4.20 51 8,417 12.5 (0) (5) (15) 22 24 0 (2) (10) 32 31 Dec-14 nm 2 7 nm 9.1 8.9 8.4 100 99 3.3 15.3 1.3 0.8 9.0 7

Yantai Jereh Oilfield 002353 CH O CNY 25.02 30.00 20 3,730 135.1 (3) 0 (9) (18) (21) (3) 3 (4) (21) (38) Dec-14 (85) 81 29 20.0 134.0 74.2 57.5 17 22 0.1 2.3 3.0 8.9 71.2 (40) Yizheng (A) 600871 CH U CNY 8.28 1.60 (81) 16,074 123.0 (0) (4) (16) 42 100 (0) (1) (11) 39 84 Dec-14 (202) nm nm 52.1 nm nm 365.2 61 nm 0.0 (11.0) 5.1 2.4 51.6 48 Yizheng (H) 1033 HK U HKD 2.04 1.90 (7) 16,074 6.6 (3) (11) (19) (17) (13) (2) (7) (14) (7) (6) Dec-14 (202) nm nm 10.6 nm nm 74.6 61 nm 0.0 (11.0) 1.0 2.4 51.6 48

Sector* 15 411,386 (1) (7) (13) (32) (29) (0) (4) (7) (22) (22) Dec-14 (61) 40 32 7.7 19.5 14.0 10.6 78 89 2.6 4.6 0.8 0.8 6.8 41

Environmental Services Trina Chen - 852 2101 7031

BE Water 371 HK O HKD 5.90 8.00 36 6,641 13.3 (0) (1) (5) 12 28 0 2 1 21 35 Dec-14 24 25 13 28.4 22.9 18.2 16.1 99 98 1.7 13.6 3.0 6.2 20.2 107 Beijing Capital 600008 CH U CNY 10.16 8.70 (14) 3,812 102.3 (2) (5) (10) (14) 12 (2) (2) (5) (16) (5) Dec-14 4 13 40 36.6 35.3 31.1 22.3 95 84 1.7 9.3 2.8 5.5 22.9 107 CEI 257 HK O HKD 11.14 18.50 66 6,445 11.8 (2) (8) (9) (3) 4 (2) (5) (4) 6 11 Dec-14 42 44 51 29.3 20.7 14.4 9.5 107 117 1.4 14.0 2.7 6.3 13.8 31

CT Environment 1363 HK O HKD 2.44 3.10 27 1,989 4.1 (2) (3) (11) 23 38 (2) (0) (6) 33 45 Dec-14 41 35 20 32.3 23.0 17.0 14.2 97 101 0.9 25.8 4.8 11.3 17.8 80 Canvest 1381 HK O HKD 3.10 5.60 81 800 1.4 1 0 3 31 na 2 3 9 41 na Dec-14 14 72 37 24.4 21.4 12.5 9.1 101 114 0.0 11.8 2.4 5.3 12.9 14 Conch Venture 586 HK O HKD 16.20 21.50 33 3,772 12.3 (1) (1) (9) (4) 5 (0) 2 (3) 6 12 Dec-14 (14) (4) 17 10.8 12.6 13.1 11.2 92 84 2.4 12.4 1.5 10.5 27.9 (10)

Dongjiang (A) 002672 CH U CNY 18.78 18.19 (3) 2,264 44.0 (2) (4) (12) 35 43 (2) (1) (6) 33 26 Dec-14 28 50 50 63.7 49.9 33.4 22.2 92 100 0.4 12.7 6.0 6.5 27.1 68 Dongjiang (H) 895 HK O HKD 11.88 23.00 94 2,264 2.4 (4) (7) (21) 9 18 (3) (4) (15) 19 25 Dec-14 28 50 50 33.4 26.2 17.5 11.6 74 83 0.8 12.7 3.1 6.5 27.1 68 Dynagreen 1330 HK O HKD 4.41 5.50 25 595 1.4 2 0 0 (5) 1 2 3 5 5 9 Dec-14 38 33 56 22.7 16.5 12.4 7.9 100 97 0.6 10.1 1.6 3.2 10.7 63

Guodian Tech 1296 HK N HKD 0.76 0.75 (1) 595 0.3 (3) (4) (7) (39) (40) (2) (1) (2) (29) (33) Dec-14 nm nm 14 nm nm 25.2 22.2 60 60 0.0 (3.3) 0.4 0.9 8.6 122 SIIC Env SIIC SP O SGD 0.79 1.50 90 1,255 2.4 0 4 (7) 14 13 1 7 (1) 24 20 Dec-14 27 53 33 25.2 19.8 13.0 9.8 121 139 0.0 9.3 1.6 4.1 13.1 27 Sound Global 967 HK R HKD 7.00 1,360 0.0 0 0 0 (22) (4) 1 3 5 (12) 4 na na na na na na na na na na na na

Tianjin Capital (A) 600874 CH U CNY 10.63 4.30 (60) 2,064 53.9 (3) (4) (8) (4) 18 (3) (2) (3) (6) 2 Dec-14 21 19 2 49.2 40.8 34.4 33.6 99 106 0.8 8.6 3.4 7.8 13.5 22 Tianjin Capital (H) 1065 HK N HKD 6.05 5.20 (14) 2,064 2.2 0 (6) (1) 16 23 1 (3) 4 26 30 Dec-14 21 19 2 23.2 19.2 16.2 15.8 99 106 1.7 8.6 1.6 7.8 13.5 22 Tus-Sound 000826 CH N CNY 37.69 41.00 9 4,966 75.9 (2) 0 (10) 38 51 (2) 3 (4) 35 35 Dec-14 27 22 19 39.5 31.1 25.5 21.4 95 84 0.3 18.1 5.2 5.5 20.6 63

Yonker Environment 300187 CH U CNY 41.88 11.00 (74) 1,389 22.2 (4) (6) (4) 37 38 (4) (3) 2 35 21 Dec-14 46 19 (9) 153.6 105.1 88.5 96.7 91 75 0.1 7.4 6.6 9.4 71.2 16 Sector* 29 37,946 (1) (3) (8) 8 20 (1) 0 (2) 18 27 Dec-14 20 33 30 28.5 23.8 17.9 13.8 96 97 1.2 11.1 2.5 4.4 17.4 60

Healthcare Iris Wang - 852 2101 7646

3Sbio 1530 HK O HKD 10.14 9.70 (4) 3,291 6.4 (4) (7) 10 na na (3) (4) 15 na na Dec-14 48 31 30 54.4 36.8 28.1 21.7 94 93 0.0 17.6 3.8 10.9 31.2 (63) Baiyunshan Pharma (A) 600332 CH N CNY 28.48 35.40 24 5,316 92.9 (2) (1) (5) 5 5 (2) 2 1 3 (12) Dec-14 (11) 16 17 30.8 34.7 29.8 25.5 81 87 0.7 10.5 2.6 1.1 14.3 (59)

Baiyunshan Pharma (H) 874 HK N HKD 20.00 26.00 30 5,316 5.0 (1) (2) (2) (15) (15) (0) 1 3 (5) (7) Dec-14 (11) 16 17 18.0 20.2 17.3 14.8 78 80 1.2 10.5 1.5 1.1 14.3 (59) Bloomage 963 HK O HKD 19.02 24.00 26 860 1.6 0 3 19 49 79 1 7 24 58 86 Dec-14 16 31 29 28.6 24.7 18.8 14.6 106 110 0.0 26.9 5.9 8.4 15.7 (49) CBPO CBPO US O USD 119.3 121.3 2 3,165 5.8 0 0 4 77 78 1 3 10 87 85 Dec-14 21 21 21 40.1 33.2 27.5 22.8 109 106 0.0 36.8 10.0 11.1 22.8 8

CMS 867 HK O HKD 10.28 12.70 24 3,299 8.0 (3) (9) (8) (20) (19) (2) (6) (2) (10) (12) Dec-14 (7) 23 22 19.7 21.1 17.2 14.1 97 96 0.0 23.4 4.6 5.8 18.8 (6) CR Sanjiu 000999 CH O CNY 26.12 41.00 57 3,980 43.4 0 (1) (7) 15 16 0 2 (2) 13 (1) Dec-14 18 17 16 24.7 21.0 17.9 15.5 98 100 1.6 17.0 3.4 3.1 14.3 (14) CSPC Pharma 1093 HK O HKD 7.79 7.90 1 5,941 12.8 (1) (3) 11 14 19 (0) 0 16 24 26 Dec-14 28 22 19 35.2 27.5 22.6 18.9 99 97 1.1 19.7 5.1 3.8 18.3 (6)

China Animal Hlt 940 HK O HKD 5.20 7.60 46 1,319 0.0 0 0 0 (4) (11) 1 3 5 6 (4) Dec-13 53 49 35 40.0 26.2 17.5 13.0 102 100 0.0 16.2 4.0 5.9 13.5 (60) China TCM 570 HK O HKD 5.11 6.70 31 2,956 6.2 (2) (3) (10) 14 20 (1) 0 (4) 24 27 Dec-14 60 18 17 26.0 16.2 13.7 11.7 145 101 0.0 16.6 1.7 6.3 25.1 5 Dawnrays Pharma 2348 HK O HKD 5.98 9.70 62 621 1.1 (0) (0) (8) 21 (14) 0 3 (3) 31 (7) Dec-14 46 28 21 19.5 13.3 10.4 8.6 114 112 3.0 23.7 3.0 3.4 8.6 (30)

Fosun Pharma (A) 600196 CH N CNY 25.32 27.00 7 8,834 118.6 (1) 1 (5) 20 20 (1) 3 1 17 3 Dec-14 8 10 13 27.5 25.4 23.0 20.4 95 89 1.2 13.8 3.4 4.8 34.8 23 Fosun Pharma (H) 2196 HK O HKD 25.05 33.70 35 8,834 6.3 (3) (4) (4) (10) (8) (3) (1) 1 (0) (1) Dec-14 8 10 13 22.6 20.8 18.9 16.8 97 92 1.4 13.8 2.8 4.8 34.8 23 Golden Throat 6896 HK O HKD 4.59 5.60 22 444 0.4 0 6 3 na na 1 10 9 na na Dec-14 51 22 22 22.7 15.0 12.3 10.0 102 99 1.7 33.8 2.8 2.9 9.0 (63)

Hengrui Medicine 600276 CH O CNY 50.01 57.00 14 15,230 116.0 (0) (2) (3) 60 68 (0) 1 3 58 51 Dec-14 7 16 20 49.7 46.4 40.0 33.2 98 89 0.3 23.7 9.9 9.9 36.8 (37) Huahai Pharma 600521 CH O CNY 24.48 31.00 27 3,022 53.2 0 4 (7) 68 59 0 7 (1) 66 43 Dec-14 69 34 26 72.4 42.9 32.0 25.5 96 105 1.0 13.4 5.5 6.0 27.4 (4) Hualan Bio 002007 CH O CNY 39.67 42.50 7 3,589 72.3 (1) (2) (8) 19 19 (1) 1 (2) 17 2 Dec-14 21 22 21 42.8 35.3 28.9 23.9 102 102 0.6 17.8 5.9 14.4 28.8 (16)

Humanwell Healthcare 600079 CH N CNY 20.47 14.50 (29) 4,098 109.9 (1) 5 7 60 57 (1) 8 13 57 40 Dec-14 22 21 na 46.8 38.5 31.8 na 109 92 0.4 11.3 4.2 3.5 20.7 29 Kangmei Pharma 600518 CH N CNY 18.61 30.75 65 12,738 292.3 0 0 6 58 50 0 3 12 55 34 Dec-14 30 26 24 35.8 27.5 21.8 17.5 101 87 1.6 16.8 4.4 4.0 18.6 (34) Kanion Pharma 600557 CH N CNY 23.29 28.00 20 1,808 53.9 (0) (2) (7) 1 (4) (0) 1 (2) (2) (20) Dec-14 30 27 na 31.0 23.9 18.8 na 117 119 0.6 20.2 4.5 3.8 18.4 14

Luye Pharma 2186 HK O HKD 7.50 9.36 25 3,214 6.7 (1) (2) (2) (25) (21) (1) 1 3 (15) (14) Dec-14 32 24 24 34.1 25.8 20.8 16.8 100 102 0.0 15.1 3.6 4.7 15.8 (58) MYL Pharma 600993 CH U CNY 20.26 12.31 (39) 1,359 62.4 (1) (3) (9) 30 27 (1) (0) (3) 27 11 Dec-14 13 10 na 42.8 38.0 34.4 na 101 95 0.8 13.9 5.0 4.3 29.1 (55) Microport 853 HK U HKD 2.94 2.80 (5) 541 0.3 (0) (4) (12) (10) (19) 0 (1) (6) (0) (12) Dec-14 nm 322 na nm 145.5 34.5 na nm 85 0.0 1.1 1.6 2.1 16.1 66

PTH Pharma 600436 CH U CNY 58.69 29.60 (50) 3,674 52.7 (1) 4 (5) 67 65 (1) 7 1 65 48 Dec-13 3 18 19 54.9 53.5 45.4 38.1 100 93 0.8 16.7 8.5 14.6 42.7 (31)

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China—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Healthcare Iris Wang - 852 2101 7646

Salubris Pharma 002294 CH O CNY 30.50 35.00 15 3,104 47.3 0 (1) 3 38 37 0 2 9 35 20 Dec-14 25 23 25 30.6 24.5 19.8 15.8 100 94 1.6 31.3 7.0 5.3 11.7 (24) Shandong Weigao 1066 HK O HKD 5.64 7.10 26 3,258 5.7 0 (3) (0) (10) (10) 1 (0) 5 (0) (3) Dec-14 21 17 15 21.2 17.5 15.0 13.0 100 101 1.7 11.6 1.9 2.9 10.3 (33) Shanghai Pharma (A) 601607 CH O CNY 18.61 37.20 100 7,189 93.3 1 (4) (8) 13 18 1 (1) (3) 10 2 Dec-14 16 14 15 19.3 16.7 14.7 12.8 104 104 1.4 10.4 1.7 0.3 8.3 (32)

Shanghai Pharma (H) 2607 HK O HKD 16.38 33.30 103 7,189 7.4 (2) (6) (12) (6) (2) (1) (3) (7) 3 5 Dec-14 16 14 15 14.1 12.2 10.7 9.3 105 107 1.9 10.4 1.2 0.3 8.3 (32) Sihuan Pharma 460 HK O HKD 4.39 6.64 51 5,875 0.0 0 0 0 (15) (9) 1 3 5 (6) (2) Dec-14 28 25 na 22.1 17.3 13.9 na 113 118 1.7 22.1 3.6 4.2 14.2 (35) Sino Biopharm 1177 HK O HKD 7.32 7.33 0 7,001 13.8 (4) (4) 9 56 55 (4) (1) 14 66 62 Dec-14 29 20 16 35.9 27.9 23.3 20.1 102 102 1.0 28.1 7.5 3.3 17.1 (27)

Sinopharm 1099 HK N HKD 33.25 41.00 23 11,872 20.1 (0) (1) 1 21 22 0 2 6 31 30 Dec-14 12 21 20 24.8 22.1 18.2 15.2 94 96 1.4 12.2 2.6 0.4 8.5 33 TRT 600085 CH U CNY 33.54 18.00 (46) 7,160 86.7 0 17 22 50 55 0 19 28 47 38 Dec-14 17 19 19 59.7 51.2 42.9 35.9 99 100 0.7 15.3 7.4 3.7 21.4 (55) Tasly Pharma 600535 CH O CNY 38.72 65.00 68 6,512 67.0 (1) 5 (1) (6) (8) (1) 8 5 (8) (24) Dec-14 29 25 27 30.6 23.7 18.9 14.9 110 115 1.4 28.0 5.4 2.9 15.2 12

YNBY 000538 CH O CNY 72.40 87.00 20 11,736 93.1 (0) 2 3 15 21 (0) 4 8 12 4 Dec-14 21 21 18 30.1 24.8 20.6 17.4 104 106 0.8 24.5 5.5 3.3 20.8 (19) Sector* 23 153,006 (1) (0) 1 25 26 (0) 3 6 35 33 Dec-14 21 21 20 30.2 25.1 20.8 17.3 101 99 1.0 16.5 3.6 1.7 16.9 (15)

Hotels, Restaurants & Leisure

Kevin Yin / Sophie Chiu - 852 2101 7655 / 852 2101 7657

Ajisen China 538 HK N HKD 3.40 3.40 0 479 0.7 1 2 4 (42) (41) 1 5 9 (33) (34) Dec-14 (11) 6 9 13.5 15.2 14.4 13.2 99 102 4.7 7.1 1.1 0.7 4.8 (39)

CITS 601888 CH O CNY 56.60 68.00 20 8,601 89.8 4 8 (3) 27 38 4 11 3 25 22 Dec-14 5 14 20 37.0 35.1 30.8 25.7 91 85 0.7 14.7 4.9 2.2 20.6 (65) China CYTS 600138 CH O CNY 22.18 23.00 4 2,499 79.0 3 4 4 35 35 3 7 10 32 18 Dec-14 (13) 49 17 41.8 48.0 32.2 27.6 91 97 0.4 7.3 3.4 1.5 21.6 1 China Lodging HTHT US O USD 29.90 34.60 16 1,858 1.2 0 1 (0) 14 29 1 4 5 24 37 Dec-14 36 19 13 39.5 29.2 24.6 21.7 100 95 0.0 12.1 3.2 1.8 8.8 (43)

Jin Jiang Hotel 2006 HK O HKD 2.83 4.10 45 2,032 2.6 (0) (5) (4) 14 7 0 (2) 2 24 14 Dec-14 39 (19) 17 21.0 15.1 18.7 15.9 120 95 3.0 9.7 1.4 1.5 5.5 29 Shanghai Jinjiang 600754 CH N CNY 47.11 27.60 (41) 4,755 88.4 (4) (6) (0) 88 88 (4) (4) 5 85 71 Dec-14 7 11 15 60.0 56.1 50.7 44.0 112 90 1.1 7.6 4.2 6.2 25.5 60 Xiabu Xiabu 520 HK O HKD 3.40 5.20 53 467 0.2 1 (3) (7) (29) na 2 0 (1) (19) na Dec-14 22 14 12 16.8 13.8 12.0 10.8 97 97 2.5 15.9 2.1 0.7 5.0 (87)

Sector* 7 22,276 1 2 (0) 35 42 2 6 5 45 49 Dec-14 10 10 15 34.3 31.3 28.5 24.7 101 93 1.0 10.3 3.1 2.1 12.8 (3)

Insurance Arjan van Veen / Charles Zhou - 852 2101 7508 / 852 2101 6177

China Life (A) 601628 CH N CNY 28.14 31.50 12 115,357 219.3 1 (4) (6) (18) 15 1 (2) (0) (20) (2) Dec-14 43 20 6 24.7 17.3 14.5 13.6 104 116 0.9 15.1 2.4 na na na China Life (H) 2628 HK O HKD 25.15 38.50 53 115,357 160.8 (2) (7) (12) (17) (7) (1) (4) (7) (8) 0 Dec-14 43 20 6 18.3 12.8 10.7 10.1 102 116 1.2 15.1 1.8 na na na China Pacific (A) 601601 CH R CNY 27.06 37,437 227.0 0 (6) (2) (16) 7 0 (3) 4 (19) (10) Dec-14 68 3 12 22.2 13.2 12.8 11.4 114 110 3.0 14.7 1.8 na na na

China Pacific (H) 2601 HK R HKD 30.60 37,437 52.9 (4) (8) (7) (22) (10) (4) (5) (2) (13) (3) Dec-14 68 3 12 20.8 12.4 12.0 10.7 114 117 3.2 14.7 1.7 na na na China Taiping 966 HK O HKD 23.15 35.00 51 10,736 24.1 0 (4) (11) 4 18 1 (0) (6) 14 25 Dec-14 59 (30) 20 15.8 10.0 14.2 11.8 107 85 0.0 14.5 1.4 na na na NCI (A) 601336 CH U CNY 49.62 40.00 (19) 20,537 234.7 4 1 (0) 0 25 4 4 5 (2) 9 Dec-14 67 (9) 17 24.2 14.5 15.9 13.6 121 106 0.7 19.8 2.6 na na na

NCI (H) 1336 HK O HKD 33.20 49.00 48 20,537 27.3 0 (3) (8) (15) (1) 1 0 (2) (5) 6 Dec-14 67 (9) 17 13.4 8.0 8.8 7.5 113 97 1.2 19.8 1.4 na na na PICC Group 1339 HK O HKD 3.85 5.50 43 21,075 23.2 (2) (6) (8) 6 7 (1) (3) (3) 16 14 Dec-14 66 (18) 14 10.3 6.2 7.6 6.7 126 113 1.2 20.4 1.1 na na na PICC P&C 2328 HK O HKD 16.00 21.50 34 30,613 50.6 (1) (8) (10) 6 6 (0) (4) (4) 16 13 Dec-14 45 (15) 23 12.5 8.6 10.1 8.2 116 102 2.9 23.6 1.8 na na na

Ping An (A) 601318 CH O CNY 34.44 52.50 52 99,104 1,157.9 0 (4) (6) (8) 16 0 (2) 0 (10) (0) Dec-14 39 (6) 12 14.7 10.6 11.2 10.1 107 88 1.6 18.3 1.8 na na na Ping An (H) 2318 HK O HKD 42.70 65.00 52 99,104 268.9 (1) (4) (7) 8 20 (1) (0) (1) 18 27 Dec-14 39 (6) 12 15.1 10.9 11.5 10.3 99 96 1.5 18.3 1.8 na na na Sector* 50 334,859 (2) (6) (9) (6) 4 (1) (3) (4) 4 11 Dec-14 48 (1) 12 15.7 10.6 10.7 9.6 107 106 1.7 17.5 1.7 na na na

Media David Hao / Dick Wei - 852 2101 7310 / 852 2101 7339

B-Ray 600880 CH O CNY 7.50 16.00 113 1,276 128.6 0 0 0 (30) (38) 0 3 6 (33) (55) Dec-14 85 35 25 29.2 15.8 11.7 9.3 137 130 2.0 14.3 2.2 3.6 10.1 (34)

CSS 1450 HK O HKD 1.14 2.70 137 147 0.4 3 (11) (24) (4) 1 3 (8) (19) 6 8 Dec-14 13 22 23 8.5 7.5 6.2 5.0 118 106 5.9 28.4 1.8 1.1 5.7 10 Enlight 300251 CH U CNY 32.60 19.20 (41) 7,443 188.5 2 12 19 79 93 2 15 24 77 76 Dec-14 (1) 45 30 98.8 99.3 68.3 52.6 94 100 0.3 9.0 6.5 24.0 72.5 (43) New Culture 300336 CH N CNY 34.55 23.00 (33) 2,891 49.2 3 19 3 187 171 3 21 9 184 155 Dec-14 (28) 26 22 54.8 76.5 60.7 49.5 77 73 0.1 13.4 7.1 18.1 54.5 (3)

Wanda Cinema 002739 CH O CNY 105.4 122.0 16 18,375 141.1 (1) 3 4 na na (1) 6 10 na na Dec-14 (31) 80 49 65.8 95.9 53.1 35.6 100 120 0.1 34.4 28.3 14.4 68.9 (8) Wisdom 1661 HK O HKD 5.15 7.00 36 1,069 4.0 1 (5) 17 14 1 1 (2) 22 24 8 Dec-14 17 81 32 24.7 21.1 11.7 8.8 109 144 1.6 24.9 4.9 7.2 18.5 (51) Sector* 3 31,201 (0) 6 8 86 89 0 9 13 96 96 Dec-14 (11) 60 38 61.0 68.5 42.9 31.1 103 115 0.3 18.4 10.2 13.3 50.6 (27)

Metals & Mining Trina Chen / Joy Zhang - 852 2101 7031 / 852 2101 7083

Angang Steel (A) 000898 CH N CNY 4.56 3.50 (23) 4,785 52.7 1 (4) (10) (26) (13) 1 (1) (4) (28) (30) Dec-14 (386) nm nm 35.6 nm nm 406.2 8 nm 0.0 (5.7) 0.7 1.2 37.9 72

Angang Steel (H) 347 HK O HKD 3.00 4.30 43 4,785 4.8 (3) (4) (8) (55) (52) (2) (1) (3) (45) (44) Dec-14 (386) nm nm 19.4 nm nm 221.5 28 nm 0.0 (5.7) 0.4 1.2 37.9 72 Baosteel 600019 CH O CNY 5.41 6.50 20 13,868 130.8 0 (5) (10) (23) (8) 0 (2) (5) (25) (25) Dec-14 (62) (45) 250 15.4 40.4 73.8 21.1 48 18 1.2 1.9 0.8 0.8 8.2 42 CN Coal Energy (A) 601898 CH U CNY 6.00 2.10 (65) 10,158 151.5 1 (5) (13) (13) 3 1 (2) (7) (16) (14) Dec-14 nm nm nm 563.2 nm nm nm 38 15 0.0 (5.0) 1.0 2.9 29.2 86

CN Coal Energy (H) 1898 HK U HKD 3.04 2.50 (18) 10,158 11.2 0 (5) (15) (37) (39) 1 (2) (10) (28) (32) Dec-14 nm nm nm 236.5 nm nm nm 50 14 0.0 (5.0) 0.4 2.9 29.2 86 Chalco (A) 601600 CH U CNY 4.90 1.96 (60) 9,530 218.3 0 (5) (12) (22) (0) 0 (2) (6) (24) (17) Dec-14 nm nm nm nm nm nm nm 98 23 0.0 (5.0) 2.1 1.4 26.7 212 Chalco (H) 2600 HK N HKD 2.30 2.40 4 9,530 7.7 (1) (8) (10) (36) (32) (1) (5) (4) (26) (24) Dec-14 nm nm nm nm nm nm nm 176 80 0.0 (5.0) 0.8 1.4 26.7 212

China Shenhua (A) 601088 CH U CNY 14.71 9.70 (34) 42,995 191.9 0 (3) (9) (28) (16) 0 (1) (3) (30) (33) Dec-14 (42) (33) 32 7.6 13.0 19.3 14.6 85 57 2.7 7.5 1.0 2.0 5.3 16 China Shenhua (H) 1088 HK N HKD 11.94 11.80 (1) 42,995 36.6 (1) (5) (9) (48) (48) (0) (2) (3) (38) (40) Dec-14 (42) (33) 32 5.1 8.8 13.0 9.8 90 61 4.0 7.5 0.6 2.0 5.3 16 Jiangxi Copper (A) 600362 CH U CNY 14.48 8.68 (40) 6,210 112.8 (0) (6) (6) (21) (16) (0) (3) (0) (24) (33) Dec-14 (44) (28) 53 17.3 30.8 42.9 28.0 88 62 0.8 3.5 1.1 0.3 8.5 (2)

Jiangxi Copper (H) 358 HK O HKD 8.56 10.60 24 6,210 15.9 (3) (7) (17) (36) (36) (3) (4) (12) (26) (29) Dec-14 (44) (28) 53 8.5 15.1 21.0 13.7 91 59 1.6 3.5 0.5 0.3 8.5 (2) Maanshan (A) 600808 CH U CNY 3.18 1.34 (58) 3,312 74.0 0 (7) (10) (21) 8 0 (5) (5) (23) (9) Dec-14 nm nm nm 111.0 nm nm nm 60 23 0.0 (14.9) 1.2 1.0 44.5 114 Maanshan (H) 323 HK N HKD 1.60 1.70 6 3,312 3.2 (1) (3) (7) (31) (26) (0) 0 (2) (21) (18) Dec-14 nm nm nm 46.3 nm nm nm 73 54 0.0 (14.9) 0.5 1.0 44.5 114

Yanzhou Coal (A) 600188 CH U CNY 9.31 2.50 (73) 5,156 33.1 1 (5) (11) (29) (22) 1 (2) (6) (32) (39) Dec-14 (219) nm nm 59.8 nm nm nm nm nm 0.0 (2.4) 1.2 2.5 13.1 114 Yanzhou Coal (H) 1171 HK U HKD 3.43 3.00 (13) 5,156 7.4 (2) (6) (13) (48) (47) (1) (3) (8) (38) (40) Dec-14 (219) nm nm 18.3 nm nm nm nm nm 0.0 (2.4) 0.4 2.5 13.1 114 Yitai Coal 3948 HK U HKD 4.77 4.20 (12) 2,003 0.1 0 (6) (7) (29) (41) 1 (3) (2) (19) (33) Dec-14 (83) (169) nm 5.7 34.1 nm 42.2 26 nm 0.9 1.7 0.6 2.5 12.3 122

Zhaojin 1818 HK U HKD 4.28 3.00 (30) 1,638 3.1 2 3 (0) 9 10 3 6 5 19 18 Dec-14 3 (19) 13 24.4 23.6 29.1 25.7 101 80 1.4 5.1 1.2 3.8 9.8 93 Zijin (A) 601899 CH U CNY 3.48 2.05 (41) 18,625 209.3 1 (2) (8) 3 12 1 1 (3) 0 (4) Dec-14 2 6 28 32.1 31.5 29.7 23.2 97 97 1.0 8.4 2.6 2.0 19.5 59 Zijin (H) 2899 HK O HKD 2.02 2.60 29 14,183 9.5 1 4 (2) (8) (3) 2 7 3 2 4 Dec-14 2 6 28 15.4 15.2 14.3 11.2 99 97 2.0 8.4 1.3 1.6 15.7 59

Sector* 6 113,837 (1) (4) (9) (37) (34) (0) (1) (4) (27) (27) Dec-14 (55) na na 19.7 43.9 nm 23.1 50 nm 2.0 2.3 0.6 1.4 10.3 53

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China—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Real Estate Jinsong Du / Kelvin Tam - 852 2101 6589 / 852 2101 6582

Agile Property 3383 HK U HKD 4.34 2.80 (35) 2,194 5.0 0 (2) (1) (2) 4 1 1 5 8 11 Dec-14 (21) 9 5 3.3 4.2 3.8 3.6 100 102 5.7 8.9 0.4 1.1 6.0 80 CFLD 600340 CH O CNY 26.69 30.02 12 10,992 133.5 2 (4) 2 22 65 2 (2) 7 20 49 Dec-14 30 22 25 20.0 15.4 12.6 10.1 92 88 3.0 41.4 5.7 2.6 13.2 88

CMPD 000024 CH O CNY 40.50 45.12 11 13,030 289.9 0 12 9 53 119 0 15 15 51 102 Dec-14 13 19 15 24.5 21.6 18.1 15.7 94 104 0.5 14.5 2.9 2.0 9.4 29 COGO 81 HK O HKD 2.87 4.10 43 845 1.1 0 (4) 10 (27) (30) 1 (1) 16 (17) (23) Dec-14 59 17 5 5.9 3.7 3.2 3.0 121 111 2.7 14.9 0.5 0.9 4.5 65 CR Land 1109 HK N HKD 22.10 21.40 (3) 19,764 41.5 2 (3) 2 12 15 3 (0) 7 22 22 Dec-14 4 14 12 10.9 10.5 9.2 8.2 99 100 2.6 13.1 1.2 1.9 7.1 45

CWTC 600007 CH O CNY 17.97 21.28 18 2,817 22.7 8 8 8 18 29 8 11 14 15 12 Dec-14 5 10 13 33.7 32.2 29.2 25.9 95 99 1.0 10.6 3.3 8.7 19.5 35 China Jinmao 817 HK O HKD 2.56 3.00 17 3,525 4.7 2 2 11 15 21 3 5 16 25 28 Dec-14 (8) 13 22 7.7 8.3 7.4 6.1 85 87 3.3 10.4 0.8 2.1 6.0 55 China Overseas Land 688 HK N HKD 27.05 29.00 7 34,416 78.8 1 (1) 2 21 19 2 2 7 31 27 Dec-14 24 19 10 9.3 7.5 6.3 5.8 114 120 2.3 23.9 1.6 1.7 5.7 25

China Vanke (A) 000002 CH O CNY 19.55 20.80 6 29,518 403.0 10 7 36 41 71 10 10 41 38 55 Dec-14 18 14 8 13.2 11.1 9.8 9.0 107 106 3.1 20.1 2.1 1.2 7.2 16 China Vanke (H) 2202 HK O HKD 21.50 26.00 21 3,648 26.8 6 1 15 24 24 7 4 20 34 32 Dec-14 18 14 8 12.0 10.2 8.9 8.2 109 107 3.0 20.1 1.9 0.3 1.3 16 Country Garden 2007 HK N HKD 3.03 3.05 1 8,831 8.4 (0) (2) 1 (2) (2) 0 1 6 8 6 Dec-14 (8) 11 10 5.2 5.7 5.1 4.6 100 101 5.3 15.8 0.8 0.9 5.3 47

DWCP 3699 HK O HKD 45.65 68.00 49 26,667 32.7 (2) (6) (10) (8) na (2) (3) (5) 2 na Dec-14 0 18 15 9.8 9.8 8.3 7.2 99 94 2.6 11.0 1.0 2.1 5.8 63 E-House China EJ US O USD 6.10 8.00 31 867 1.2 0 1 1 (16) (29) 1 4 6 (6) (22) Dec-14 (72) (7) 318 12.6 44.3 47.7 11.4 34 16 2.5 2.2 1.0 0.5 44.2 (29) Evergrande 3333 HK N HKD 5.73 4.80 (16) 10,330 49.2 0 (9) (8) 82 79 1 (6) (3) 92 86 Dec-14 15 9 9 10.7 9.3 8.5 7.9 98 93 2.7 14.6 1.3 1.1 6.0 65

Financial Street 000402 CH U CNY 11.90 7.25 (39) 5,536 129.8 1 5 20 (3) 27 1 8 26 (6) 11 Dec-14 15 13 19 12.1 10.6 9.3 7.9 115 113 2.1 13.7 1.4 2.3 12.4 84 Gemdale 600383 CH U CNY 13.18 8.40 (36) 9,231 69.3 2 (4) 8 16 45 2 (2) 14 13 29 Dec-14 10 15 16 14.8 13.4 11.7 10.1 101 100 1.0 13.4 1.7 1.6 11.7 58 Glorious 845 HK U HKD 0.80 0.70 (13) 804 0.5 1 (2) (18) (33) (26) 2 1 (13) (24) (19) Dec-14 nm 57 34 nm 27.6 17.5 13.0 100 100 0.0 1.2 0.3 4.2 44.7 126

Greentown 3900 HK O HKD 8.50 12.75 50 2,371 4.9 3 (1) 21 10 11 3 2 26 20 18 Dec-14 68 1 10 6.0 3.6 3.5 3.2 154 145 2.8 16.6 0.6 1.1 5.6 72 Guangzhou R&F 2777 HK U HKD 9.60 6.60 (31) 3,992 8.7 (0) 3 17 1 (1) 0 6 22 11 7 Dec-14 33 11 5 6.4 4.8 4.3 4.1 97 96 6.2 13.8 0.6 1.8 6.7 92 Hopefluent 733 HK O HKD 2.01 2.40 19 173 0.2 0 0 2 (17) (14) 1 4 7 (7) (7) Dec-14 5 18 13 7.1 6.7 5.7 5.1 100 100 2.7 8.9 0.6 0.1 1.1 (41)

KWG Property 1813 HK N HKD 5.90 5.70 (3) 2,281 5.8 0 1 3 11 3 1 4 9 21 11 Dec-14 4 14 8 5.5 5.3 4.6 4.3 90 87 8.2 12.6 0.6 2.7 10.7 65 Leju LEJU US O USD 5.82 10.20 75 809 0.6 0 (0) (12) (46) (49) 1 3 (6) (36) (42) Dec-14 (21) 41 13 8.5 10.8 7.7 6.8 114 137 1.8 17.0 1.7 0.6 3.9 (92) Poly Property 119 HK O HKD 2.52 3.00 19 1,191 6.5 1 (3) (5) (21) (20) 2 (0) 1 (11) (12) Dec-14 65 50 25 38.2 23.2 15.4 12.4 129 123 1.3 1.3 0.3 1.6 14.7 96

Poly Real Estate 600048 CH O CNY 11.19 14.40 29 18,733 309.2 4 (4) 19 3 36 4 (1) 25 1 20 Dec-14 21 25 23 9.8 8.1 6.5 5.3 104 112 1.7 22.5 1.7 1.6 9.0 106 RiseSun 002146 CH U CNY 11.31 8.37 (26) 6,732 92.0 7 (0) 21 (2) 17 7 2 26 (4) 0 Dec-14 14 22 24 13.3 11.7 9.6 7.8 105 106 1.7 25.0 2.8 2.3 11.5 119 SOHO 410 HK O HKD 3.44 8.00 133 2,308 5.5 0 0 (3) (30) (33) 1 3 2 (20) (25) Dec-14 (67) 111 40 8.4 25.0 11.9 8.5 79 174 8.7 1.5 0.4 14.7 22.9 29

Shanghai Jinqiao (A) 600639 CH N CNY 21.60 24.55 14 2,859 75.8 (2) (5) (19) (9) 38 (2) (3) (13) (12) 22 Dec-14 13 13 1 60.2 53.3 47.2 46.7 90 88 0.6 8.9 5.0 9.3 24.4 55 Shanghai Lujiazui (A) 600663 CH U CNY 44.91 26.50 (41) 9,494 134.0 (1) (4) (15) 20 39 (1) (2) (10) 17 22 Dec-14 13 14 11 52.4 46.2 40.6 36.6 101 97 0.6 14.6 6.3 10.3 27.5 53 Shanghai Shimao 600823 CH N CNY 12.19 14.18 16 3,344 33.2 1 (5) 2 24 46 1 (2) 8 22 30 Dec-14 20 20 22 11.3 9.4 7.9 6.4 100 111 0.0 13.0 1.1 1.8 8.7 28

Shenzhen International 152 HK O HKD 13.24 16.00 21 3,244 7.2 (0) 4 6 18 19 0 7 11 28 26 Dec-14 (0) 13 17 15.6 15.6 13.8 11.7 77 84 3.8 8.9 1.4 5.6 12.6 40 Shimao 813 HK O HKD 13.84 16.30 18 6,201 13.6 2 0 2 (20) (25) 2 3 8 (10) (17) Dec-14 (3) 23 9 5.0 5.2 4.2 3.9 94 105 5.8 15.5 0.8 1.4 6.0 65 Shui On Land 272 HK O HKD 2.09 2.70 29 2,165 4.1 (3) (6) (8) 14 12 (2) (3) (3) 24 20 Dec-14 nm nm (4) nm 281.4 11.4 11.8 3 112 2.9 0.1 0.4 8.3 51.3 82

Sino-Ocean Land 3377 HK N HKD 4.94 4.70 (5) 4,788 13.9 1 4 14 12 8 1 7 20 22 16 Dec-14 6 22 15 9.1 8.6 7.0 6.1 97 106 4.6 8.5 0.7 1.7 9.8 72 Sunac 1918 HK N HKD 5.79 4.80 (17) 2,540 11.6 2 (1) 10 (27) (17) 2 2 15 (17) (10) Dec-14 (52) 124 23 4.4 9.1 4.0 3.3 50 92 2.2 10.6 0.9 1.2 10.0 73 WGQ (A) 600648 CH N CNY 24.89 42.86 72 3,622 96.8 (1) (3) (18) (23) (21) (1) (0) (13) (26) (38) Dec-14 23 21 20 40.5 33.0 27.2 22.6 81 91 0.9 9.5 3.1 3.7 19.7 90

Sector* 8 259,860 2 (1) 6 16 35 3 2 12 25 42 Dec-14 12 20 14 11.0 9.8 8.2 7.2 101 104 2.6 14.6 1.3 1.6 7.2 54

Retailing Bin Wang / Kevin Yin / Simon Sun - 852 2101 6702 / 852 2101 7655 / 852 2101 7652

Baoxin 1293 HK O HKD 4.15 8.00 93 1,369 3.1 0 15 16 (7) (15) 1 18 21 2 (8) Dec-14 47 13 7 12.4 8.5 7.5 7.0 119 110 1.7 18.7 1.5 0.4 5.8 87 Better Life 002251 CH O CNY 15.61 20.80 33 1,893 49.5 (0) (5) (19) 23 15 (0) (2) (13) 20 (1) Dec-14 (40) 18 24 27.0 44.7 37.8 30.4 82 85 0.9 6.5 2.4 0.8 15.3 (5) Gome 493 HK O HKD 1.28 1.55 21 2,801 28.4 (1) (6) (14) 12 19 (0) (3) (9) 22 26 Dec-14 11 8 7 15.2 13.8 12.7 11.9 99 98 2.9 7.5 1.0 0.1 4.6 (65)

JD.com JD US O USD 31.89 40.00 25 44,110 77.8 0 (0) 11 38 25 1 3 16 48 33 Dec-14 nm nm 668 nm nm 659.5 85.9 6 26 0.0 (6.1) 7.8 1.5 2,436.0 (19) Sun Art 6808 HK O HKD 5.84 7.50 28 7,189 5.6 (0) (4) (8) (24) (30) 0 (1) (3) (14) (23) Dec-14 (13) 4 8 15.9 18.3 17.6 16.3 97 103 2.3 12.4 2.2 0.4 6.3 (34) Suning 002024 CH O CNY 13.41 22.50 68 15,411 768.2 (2) (3) (21) 49 55 (2) (1) (16) 46 38 Dec-14 (322) nm 332 114.2 nm 287.7 66.6 nm 155 0.0 (8.5) 4.5 0.8 nm 7

Wumart 1025 HK O HKD 5.81 6.00 3 965 1.5 0 4 3 (13) (23) 1 7 8 (3) (15) Dec-14 (6) 6 2 15.7 16.7 15.8 15.5 94 93 4.2 9.7 1.6 0.3 5.7 (24) YH Superstores 601933 CH O CNY 9.90 14.00 41 6,268 147.1 2 (0) (11) 14 17 2 2 (6) 11 0 Dec-14 (29) 30 22 37.8 52.9 40.7 33.4 77 80 0.9 7.0 2.5 0.7 16.1 (61) Yongda 3669 HK O HKD 6.15 7.40 20 1,174 1.5 3 13 41 21 15 4 16 46 30 22 Dec-14 39 25 14 15.1 10.8 8.6 7.5 108 108 0.0 17.1 1.7 0.3 6.7 101

ZBJT 000759 CH N CNY 7.75 8.80 14 822 19.5 1 0 (5) (13) (1) 1 3 1 (16) (18) Dec-14 (96) 983 38 28.3 716.5 66.2 47.9 8 59 0.1 0.2 1.7 0.3 14.2 (4) Zhengtong 1728 HK O HKD 3.66 4.50 23 1,044 5.4 4 12 (0) 6 (0) 5 15 5 16 7 Dec-14 (17) 27 11 8.4 10.0 7.9 7.1 85 86 2.0 7.9 0.8 0.4 6.7 61 Zhongsheng 881 HK O HKD 4.67 6.00 28 1,293 2.1 4 18 26 (33) (36) 5 21 31 (23) (29) Dec-14 37 22 17 11.8 8.6 7.0 6.0 126 124 2.5 8.9 0.7 0.4 7.4 125

Sector* 34 84,339 (0) (0) 1 28 22 0 3 6 38 29 Dec-14 na 141 48 nm 122.3 50.7 34.2 50 90 0.5 2.6 3.5 0.7 26.7 (2)

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China—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Software & Services

David Hao / Dick Wei / Evan Zhou - 852 2101 7310 / 852 2101 7339 / 852 2101 6745

58.com WUBA US O USD 62.42 73.00 17 7,212 10.7 0 (0) 15 50 44 1 3 21 60 51 Dec-14 nm nm nm 189.3 nm nm nm 74 34 0.0 (23.1) 2.6 10.0 nm (6) Aisino 600271 CH N CNY 55.91 51.00 (9) 8,036 201.7 0 0 0 83 106 0 3 6 81 89 Dec-14 52 25 28 45.0 29.6 23.7 18.5 100 99 1.4 23.6 6.4 2.2 20.2 16

Alibaba BABA US O USD 84.38 98.00 16 211,999 270.7 0 (1) 4 (19) (21) 1 2 9 (9) (14) Mar-15 18 29 29 39.0 33.2 25.7 19.9 96 95 0.0 22.6 6.1 13.0 38.8 (37) Autohome ATHM US U USD 31.28 27.00 (14) 3,481 5.9 0 1 (3) (14) (15) 1 4 3 (4) (8) Dec-14 23 (2) 41 28.2 22.8 23.3 16.5 98 81 0.0 24.3 2.4 5.5 15.8 (82) Baidu BIDU US O USD 205.0 210.0 2 72,066 220.2 0 (3) 6 (10) (11) 1 0 11 (0) (4) Dec-14 (15) 22 52 32.8 38.6 31.6 20.8 106 99 0.0 20.6 7.1 6.3 28.6 (64)

Baozun BZUN US O USD 8.11 7.70 (5) 408 0.7 0 0 11 na na 1 3 16 na na Dec-14 nm 529 92 nm 128.2 20.4 10.6 64 134 5.8 4.0 1.9 0.9 55.1 (39) Bitauto BITA US N USD 24.21 32.00 32 1,455 5.3 0 (6) (17) (66) (67) 1 (3) (11) (56) (60) Dec-14 (55) 97 72 13.5 30.2 15.4 8.9 100 89 0.0 5.9 1.1 1.4 nm (42) Boyaa 434 HK O HKD 3.21 6.60 106 317 1.6 (2) (6) (8) (44) (39) (1) (3) (3) (34) (31) Dec-14 28 20 na 6.4 5.0 4.2 na 168 163 7.0 23.4 1.0 0.3 0.8 (88)

CDEL DL US O USD 14.88 17.50 18 537 0.4 0 (2) (1) (9) (12) 1 1 4 1 (5) Sep-15 17 22 25 20.3 17.4 14.3 11.4 97 104 6.0 34.0 5.9 3.2 10.9 (146) Changyou CYOU US O USD 20.93 25.00 19 1,104 1.4 0 (2) (3) (24) (5) 1 1 3 (14) 3 Dec-14 nm (7) (6) nm 6.5 7.0 7.4 82 108 0.0 16.0 1.0 1.1 4.7 (25) Cheetah Mobile CMCM US N USD 17.62 17.00 (4) 2,465 5.1 0 (3) (7) 17 11 1 0 (2) 26 19 Dec-14 74 85 38 63.8 36.6 19.8 14.4 106 92 0.0 17.6 5.8 3.8 84.3 (52)

Ctrip CTRP US O USD 52.98 55.50 5 15,051 67.5 0 (1) 8 133 141 1 2 14 143 148 Dec-14 254 (65) 200 148.5 41.9 119.0 39.7 124 84 0.0 27.9 10.5 9.4 124.7 41 Dangdang DANG US N USD 7.11 9.10 28 585 1.8 0 (1) 5 (23) (25) 1 2 11 (14) (18) Dec-14 (153) nm na 38.6 nm 45.5 na 240 54 0.0 (7.7) 5.6 0.3 210.7 (136) East Money 300059 CH U CNY 54.27 16.71 (69) 14,356 830.2 (1) (6) (19) 126 135 (1) (3) (14) 124 118 Dec-13 nm 167 54 nm 452.0 169.6 110.2 123 33 0.1 9.8 43.6 145.3 618.3 (105)

Huace 300133 CH O CNY 30.94 35.00 13 5,251 88.5 (2) 4 6 85 67 (2) 7 12 83 50 Dec-14 23 19 22 50.7 41.2 34.6 28.3 137 120 0.2 13.5 5.2 12.8 54.8 (3) Hundsun 600570 CH U CNY 63.17 45.00 (29) 6,075 433.7 1 (2) (19) 15 16 1 1 (14) 13 (1) Dec-14 43 35 32 118.3 82.6 61.3 46.5 118 109 0.4 22.1 16.8 19.9 105.8 (18) Jumei JMEI US O USD 9.07 13.50 49 1,298 6.6 0 (2) (9) (33) (40) 1 1 (4) (24) (33) Dec-14 (8) 20 30 19.5 21.1 17.6 13.6 143 107 0.0 11.2 2.2 0.6 15.0 (100)

Kingsoft 3888 HK N HKD 19.28 17.50 (9) 3,240 30.4 (2) (4) 2 25 15 (1) (1) 7 35 23 Dec-14 (28) 36 52 20.4 28.5 20.9 13.8 126 91 0.0 11.7 2.7 2.2 25.5 (86) Mesnac 002073 CH N CNY 15.68 16.00 2 1,998 88.5 (3) (5) (6) 29 25 (3) (2) (0) 27 8 Dec-14 99 27 37 60.6 30.5 24.0 17.5 134 119 0.3 10.4 3.0 4.0 41.6 41 Netease NTES US O USD 180.5 178.0 (1) 23,750 46.5 0 6 22 82 81 1 9 27 92 88 Dec-14 39 27 10 29.8 21.4 16.9 15.4 109 113 1.2 27.5 5.4 5.7 17.4 (94)

New Oriental Education

EDU US O USD 32.32 30.00 (7) 5,058 6.1 0 4 14 62 58 1 7 20 71 65 May-15 12 19 11 24.4 21.8 18.4 16.6 105 103 0.0 16.5 3.2 2.5 14.5 (93)

Oriental Pearl 600637 CH O CNY 35.41 58.00 64 14,477 220.7 3 1 (5) (7) (7) 3 4 1 (9) (24) Dec-14 61 12 12 49.9 30.9 27.7 24.7 105 101 0.3 13.8 3.3 4.0 17.3 (51)

Qihoo QIHU US O USD 71.12 77.00 8 8,213 29.7 0 1 18 24 16 1 4 24 34 23 Dec-14 61 36 23 31.0 19.3 14.2 11.6 106 110 0.0 39.1 6.2 3.4 10.6 (90) Shiji 002153 CH N CNY 121.0 68.00 (44) 5,820 46.0 (2) 3 (8) 84 67 (2) 6 (2) 82 50 Dec-14 95 28 22 87.0 44.6 34.8 28.5 158 153 0.7 20.2 8.3 8.8 30.2 (67) Sina SINA US O USD 50.78 60.00 18 2,962 17.9 0 (1) (1) 36 38 1 2 5 46 45 Dec-14 32 56 na 66.3 50.3 32.3 na 124 113 0.0 3.0 1.6 3.2 36.6 (7)

Sohu SOHU US N USD 49.48 54.00 9 1,909 7.7 0 1 (7) (7) 4 1 4 (2) 3 11 Dec-14 nm nm nm nm nm nm nm 25 nm 0.0 (6.1) 1.7 0.5 5.8 (60) SouFun SFUN US O USD 7.08 8.60 21 3,143 11.5 0 (2) (0) (4) (14) 1 1 5 6 (6) Dec-14 (100) nm nm 12.7 nm nm 149.3 293 nm 0.0 (0.1) 3.1 2.9 nm (56) TAL XRS US O USD 45.88 44.00 (4) 3,582 3.5 0 3 20 63 62 1 6 25 73 69 Feb-15 10 34 42 45.0 40.7 30.5 21.5 81 94 0.0 28.0 10.0 5.4 30.3 (89)

Tarena TEDU US O USD 11.11 13.00 17 691 0.8 0 1 12 0 4 1 4 18 10 11 Dec-14 (3) 64 26 21.5 22.3 13.6 10.7 96 106 0.0 15.1 3.1 3.6 32.3 (9) Tencent 700 HK O HKD 150.7 179.0 19 182,841 370.4 1 (2) (1) 34 30 1 1 5 44 37 Dec-14 30 28 27 48.3 37.1 29.0 22.9 104 101 0.3 33.2 10.6 11.8 27.6 4 Tuniu TOUR US N USD 15.50 15.00 (3) 1,519 1.5 0 (0) 8 29 37 1 3 13 39 44 Dec-14 nm nm nm nm nm nm nm 95 115 0.0 (29.4) 1.3 0.6 nm (81)

Vipshop VIPS US O USD 16.19 17.50 8 9,243 35.7 0 1 (22) (17) (25) 1 4 (17) (7) (18) Dec-14 69 29 34 50.6 29.9 23.2 17.3 101 94 0.0 59.9 14.2 1.4 19.3 (90) Weibo WB US O USD 18.78 22.00 17 3,806 2.5 0 0 5 32 16 1 4 11 42 24 Dec-14 nm 89 54 nm 63.3 33.5 21.8 101 98 0.0 10.8 6.5 6.0 54.6 (153) YGSoft 002063 CH O CNY 24.64 20.73 (16) 2,288 110.6 3 6 13 60 63 3 9 19 58 46 Dec-13 (41) 104 30 43.5 73.8 36.1 27.9 105 115 0.3 11.8 8.1 16.5 66.2 (79)

YY YY US N USD 62.25 66.00 6 3,450 15.0 0 1 7 (0) (3) 1 5 12 10 4 Dec-14 7 32 23 20.4 19.1 14.6 11.8 107 97 0.0 40.3 7.4 3.7 13.5 (51) Yonyou 600588 CH N CNY 30.32 31.67 4 6,888 268.4 1 7 (11) 55 45 1 10 (5) 52 29 Dec-14 50 34 30 77.5 51.5 38.3 29.5 142 137 0.7 17.2 7.2 8.0 51.6 (54) Zhaopin ZPIN US N USD 15.37 15.00 (2) 781 0.6 0 1 1 1 (9) 1 4 6 11 (2) Jun-15 4 22 22 20.2 19.4 15.9 13.0 100 99 0.0 25.3 4.3 2.0 9.6 (144)

Sector* 10 637,353 0 (1) 2 16 14 1 2 7 26 21 Dec-14 19 27 32 43.7 36.9 29.0 22.0 101 98 0.2 22.2 6.7 7.6 31.9 (39)

Technology Hardware

Randy Abrams / Sam Li / Jerry Su / Thompson Wu - 886 2 2715 6366 / 852 2101 6775 / 886 2 2715 6361 / 886 2 2715 6386

AAC 2018 HK N HKD 54.60 56.90 4 8,651 22.4 1 (2) 5 31 30 2 1 11 41 37 Dec-14 32 16 15 24.0 18.2 15.6 13.6 100 98 2.2 30.5 5.1 4.7 13.4 (6) BYDE 285 HK N HKD 4.23 4.90 16 1,230 6.8 (2) (9) (17) (44) (48) (1) (6) (11) (34) (40) Dec-14 (13) 36 11 8.8 10.1 7.4 6.7 69 74 1.0 7.8 0.8 0.3 3.0 (20)

China Wireless 2369 HK N HKD 1.36 1.40 3 764 7.3 0 (6) (4) (11) (14) 1 (3) 2 (1) (7) Dec-14 (2) 18 9 11.3 11.5 9.7 8.9 51 119 2.2 8.6 0.7 0.1 3.1 (38) Dahua 002236 CH O CNY 37.40 42.00 12 6,755 99.2 1 (0) 3 70 58 1 2 8 68 41 Dec-14 15 42 29 37.0 32.2 22.6 17.5 100 102 0.3 23.2 6.8 4.5 25.1 (31) Digital China 861 HK N HKD 8.58 9.00 5 1,214 9.8 1 (3) (1) 19 34 1 0 4 29 41 Dec-14 (44) 48 12 13.2 23.6 16.0 14.3 71 141 0.0 4.5 1.0 0.4 22.3 24

GeorTek 002241 CH O CNY 31.90 40.80 28 7,579 117.5 2 0 12 30 24 2 3 18 28 8 Dec-14 (18) 31 27 29.3 35.7 27.2 21.5 86 86 0.3 15.3 5.1 3.5 21.2 2 Hikvision 002415 CH O CNY 33.64 41.60 24 21,305 206.9 (2) (3) (8) 50 55 (2) (1) (2) 48 38 Dec-14 34 30 25 28.9 21.5 16.5 13.3 101 96 1.4 37.3 7.1 5.1 17.9 (41) Huahong Semi 1347 HK O HKD 7.37 11.00 49 983 1.7 (2) (2) (11) (28) (31) (2) 1 (5) (18) (24) Dec-14 (8) (18) 21 8.7 9.5 11.6 9.5 99 80 0.0 7.0 0.7 1.2 4.4 (13)

LensTech 300433 CH N CNY 80.94 59.10 (27) 8,483 50.6 (3) (0) (6) na na (3) 2 (0) na na Dec-14 16 21 10 41.7 36.0 29.7 27.0 102 101 0.3 18.7 6.2 3.3 17.6 53 Luxshare 002475 CH O CNY 34.70 47.20 36 6,740 71.0 (1) 1 8 88 82 (1) 3 13 86 66 Dec-14 8 37 36 45.8 42.5 31.0 22.9 102 93 0.3 20.2 7.9 4.3 30.9 3 Ofilm 002456 CH U CNY 23.98 16.10 (33) 3,847 152.1 (4) (3) (4) 26 15 (4) (0) 1 24 (1) Dec-14 (42) 31 38 27.6 47.5 36.4 26.3 69 64 0.3 8.6 3.9 1.3 20.5 24

SMIC 981 HK O HKD 0.80 0.97 21 4,343 22.9 (2) (2) 7 13 4 (2) 1 12 22 11 Dec-14 65 (24) 15 26.3 16.0 21.0 18.3 92 70 0.0 8.3 1.2 2.1 5.9 6 Sunny Optical 2382 HK N HKD 19.08 16.50 (14) 2,701 12.2 2 9 6 43 44 2 12 12 52 51 Dec-14 27 35 25 29.4 23.1 17.1 13.7 100 104 1.0 20.5 4.4 1.6 15.3 (17) TCL Communication 2618 HK O HKD 5.75 9.00 57 938 2.1 (1) (1) (1) (20) (23) (0) 3 5 (10) (15) Dec-14 10 15 9 6.3 5.7 5.0 4.6 112 127 6.1 29.5 1.7 0.3 4.5 6

Tongda 698 HK O HKD 1.36 1.70 25 1,005 3.6 2 (4) (13) 48 49 3 (1) (8) 58 57 Dec-14 38 31 21 14.6 10.6 8.1 6.7 100 104 2.9 19.2 1.9 1.3 6.6 16 ZTE (A) 000063 CH N CNY 17.52 19.20 10 12,918 266.6 0 (4) (11) 16 24 0 (1) (5) 14 7 Dec-14 40 16 6 27.4 19.7 16.9 15.9 100 98 1.1 12.2 2.0 0.9 10.8 8 ZTE (H) 763 HK O HKD 17.12 24.00 40 12,918 13.8 (1) (2) (9) 22 12 (0) 1 (3) 32 19 Dec-14 40 16 6 22.2 15.9 13.7 12.9 98 96 1.4 12.2 1.7 0.9 10.8 8

Sector* 16 89,456 (1) (2) (2) 39 36 (0) 1 4 49 43 Dec-14 20 22 19 25.8 21.6 17.7 14.9 95 94 1.0 16.4 3.1 1.8 13.7 (2)

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China—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Telecommunication Services

Colin McCallum - 852 2101 6514

21 Vianet VNET US O USD 20.26 21.70 7 1,755 4.2 0 (2) 2 31 25 1 1 8 41 32 Dec-14 nm nm 454 nm nm 198.8 35.9 4 41 0.0 (15.2) 3.5 3.7 30.2 58 China Mobile 941 HK O HKD 89.55 125.2 40 236,588 213.1 (0) (1) (2) (1) (2) 0 2 4 9 5 Dec-14 (10) 14 12 13.8 15.4 13.5 12.0 85 93 2.5 11.1 1.7 1.9 5.5 (31)

China Telecom 728 HK O HKD 3.58 7.93 122 37,385 43.2 0 (7) (12) (21) (22) 1 (4) (7) (11) (15) Dec-14 (6) 38 23 13.6 14.4 10.4 8.5 85 111 2.4 5.7 0.8 1.1 3.7 37 China Unicom 762 HK O HKD 9.16 20.35 122 28,304 64.1 (1) (5) (8) (12) (14) (1) (2) (2) (2) (7) Dec-14 (27) 29 42 15.6 21.3 16.6 11.7 68 89 1.1 3.8 0.8 1.2 3.7 60 Unicom (A) 600050 CH U CNY 6.12 6.28 3 20,192 369.5 0 (4) (13) 24 38 0 (2) (8) 21 21 Dec-14 13 (15) 40 32.6 28.8 34.1 24.3 99 87 1.2 5.7 1.6 1.6 4.6 60

Sector* 53 324,223 (0) (2) (4) (3) (3) 0 1 1 7 4 Dec-14 (11) 18 17 14.6 16.3 13.8 11.8 84 95 2.3 8.6 1.4 1.5 4.7 7

Transportation Edmond Huang / Kevin Yin - 852 2101 6701 / 852 2101 7655

CAR 699 HK O HKD 12.60 19.00 51 3,891 19.8 (7) (8) (12) 21 15 (6) (5) (7) 31 22 Dec-14 82 64 31 43.8 24.0 14.6 11.2 104 96 0.0 16.9 3.8 5.6 9.6 67 Daqin 601006 CH N CNY 8.92 8.80 (1) 20,642 223.3 1 (2) (10) (16) (10) 1 0 (4) (19) (27) Dec-14 6 0 (10) 9.3 8.8 8.7 9.7 104 107 5.7 17.2 1.5 2.3 5.5 (9) Sector* 8 24,533 0 (3) (10) (10) (6) 1 (0) (5) (1) 1 Dec-14 9 5 (6) 10.6 9.8 9.3 9.9 104 106 4.8 17.2 1.6 2.6 6.0 (4)

Utilities Trina Chen / Dave Dai / Kelly Chen - 852 2101 7031 / 852 2101 7358 / 852 2101 7079

Beijing Enterprise 392 HK O HKD 46.40 78.00 68 7,680 13.1 (1) (2) (3) (24) (20) (1) 1 2 (14) (13) Dec-14 21 13 9 12.3 10.1 9.0 8.2 105 103 3.0 10.0 1.0 1.5 15.7 39

CR Gas 1193 HK O HKD 21.80 27.00 24 6,256 10.6 1 (1) 4 8 8 1 2 9 18 15 Dec-14 22 26 16 19.1 15.6 12.4 10.7 103 112 1.4 17.6 2.6 1.6 8.6 22 CR Power 836 HK U HKD 14.62 16.00 9 9,068 16.2 (1) (5) (13) (27) (30) (0) (2) (8) (17) (22) Dec-14 28 (1) (1) 7.6 6.0 6.0 6.1 91 95 5.4 15.7 0.9 2.4 5.5 106 CSG 956 HK O HKD 1.22 2.50 105 585 1.0 0 (4) (10) (25) (23) 1 (1) (5) (15) (16) Dec-14 44 45 26 11.1 7.7 5.3 4.2 118 136 4.4 6.4 0.5 2.5 6.9 112

China Datang 1798 HK O HKD 0.91 1.45 59 854 0.3 0 0 1 (12) (9) 1 3 7 (2) (2) Dec-14 266 46 33 43.1 11.8 8.0 6.1 142 142 0.8 4.8 0.6 7.4 9.1 338 China Gas 384 HK O HKD 10.46 18.00 72 6,701 13.1 0 (4) (9) (14) (17) 1 (1) (3) (5) (10) Mar-15 22 25 16 15.5 12.7 10.2 8.8 110 113 1.9 20.4 2.4 1.7 10.3 58 China Longyuan 916 HK O HKD 6.02 11.50 91 6,242 15.9 (7) (9) (16) (25) (25) (6) (6) (11) (16) (18) Dec-14 63 25 13 15.7 9.6 7.7 6.8 115 123 2.0 12.0 1.1 5.5 8.0 162

Chuantou 600674 CH N CNY 10.63 10.50 (1) 7,284 137.3 1 (4) (6) 3 16 1 (1) (0) 0 (1) Dec-14 12 5 (2) 12.8 11.5 11.0 11.2 100 101 1.3 24.3 2.5 46.8 87.4 25 Datang (A) 601991 CH U CNY 5.18 3.70 (29) 9,089 74.8 (0) (5) (10) (25) (0) (0) (3) (5) (27) (17) Dec-14 93 20 19 27.2 14.1 11.8 9.9 105 113 2.8 10.4 1.4 3.4 9.3 281 Datang (H) 991 HK O HKD 2.41 4.60 91 9,089 7.1 (1) (6) (15) (42) (43) (1) (3) (9) (32) (36) Dec-14 93 20 19 10.5 5.4 4.5 3.8 111 121 7.4 10.4 0.5 3.4 9.3 281

ENN Energy 2688 HK O HKD 39.00 54.00 38 5,448 16.6 (2) (5) (5) (11) (15) (2) (2) 1 (2) (8) Dec-14 16 18 15 14.9 12.8 10.9 9.5 107 108 2.3 20.9 2.5 1.3 7.8 40 Guangdong Investment

270 HK N HKD 10.56 12.00 14 8,523 11.5 (1) (1) (2) 5 6 (0) 2 3 14 14 Dec-14 (9) 4 20 15.0 16.5 15.9 13.3 101 93 2.4 12.8 2.0 7.3 10.2 (6)

HDF 816 HK O HKD 2.16 5.00 131 2,343 7.0 (3) (5) (6) (41) (43) (2) (2) (1) (31) (35) Dec-14 30 22 17 7.7 5.9 4.8 4.1 118 114 3.3 16.0 0.9 4.9 8.3 305 HDP (A) 600027 CH U CNY 6.77 4.70 (31) 9,656 155.8 (0) (5) (12) (3) 25 (0) (2) (6) (6) 9 Dec-14 0 (19) 0 10.0 10.0 12.4 12.4 85 72 4.0 18.0 1.6 2.9 7.7 239 HDP (H) 1071 HK U HKD 4.84 5.60 16 9,656 8.8 (2) (7) (15) (29) (24) (1) (4) (10) (19) (16) Dec-14 0 (19) 0 5.9 5.9 7.3 7.3 86 73 6.7 18.0 0.9 2.9 7.7 239

HNR 958 HK O HKD 2.22 4.40 98 2,787 9.0 (3) (10) (6) (12) (11) (3) (7) (1) (2) (4) Dec-14 59 42 25 14.8 9.3 6.6 5.3 104 120 2.1 11.4 1.0 8.8 9.8 291 Huaneng (A) 600011 CH U CNY 8.84 5.80 (34) 18,578 126.2 0 (5) (10) 0 21 0 (2) (5) (2) 5 Dec-14 11 (10) 7 11.7 10.6 11.8 11.0 82 77 5.2 16.6 1.7 2.1 7.2 174 Huaneng (H) 902 HK U HKD 6.81 7.30 7 18,578 27.2 (1) (4) (16) (35) (29) (1) (0) (11) (25) (22) Dec-14 11 (10) 7 7.5 6.7 7.5 7.0 81 77 8.2 16.6 1.1 2.1 7.2 174

Jingneng 600578 CH O CNY 6.07 10.00 65 4,363 60.4 0 0 0 (4) 23 0 3 6 (6) 6 Dec-14 (17) (3) 23 11.0 13.2 13.7 11.1 96 80 2.6 14.1 1.8 3.5 9.4 50 Kunlun Energy 135 HK N HKD 6.57 6.59 0 6,843 12.7 0 (6) 5 (10) (10) 1 (3) 11 (1) (3) Dec-14 (26) 21 20 9.5 12.8 10.6 8.8 105 109 2.3 7.7 1.0 1.7 4.8 28 Mengdian 600863 CH O CNY 4.62 7.50 62 4,176 148.2 (1) (6) (8) 1 28 (1) (4) (2) (1) 11 Dec-14 (24) 60 25 19.7 25.9 16.2 12.9 59 76 4.1 9.4 2.4 3.9 11.5 171

SDIC 600886 CH N CNY 8.69 10.00 15 9,179 339.1 0 (5) (8) (24) 6 0 (3) (3) (27) (11) Dec-14 15 8 4 10.5 9.2 8.5 8.2 98 99 3.8 25.6 2.2 5.3 8.2 242 SZ Gas 601139 CH U CNY 8.78 6.60 (25) 2,977 29.5 0 (3) (10) 6 8 0 (0) (5) 4 (8) Dec-14 10 12 11 24.1 21.9 19.5 17.6 113 109 1.8 14.0 2.9 2.4 17.3 41 Yangtze Power 600900 CH N CNY 13.75 13.50 (2) 35,314 208.4 1 (2) (7) 29 48 1 1 (1) 26 32 Dec-14 (3) 4 19 19.2 19.8 19.0 16.0 98 88 2.5 12.9 2.5 11.2 13.6 46

Sector* 26 180,425 (1) (4) (9) (9) 0 (0) (1) (3) 1 8 Dec-14 15 7 13 12.1 10.6 9.9 8.8 96 95 3.6 13.9 1.4 3.4 9.1 135

Country Average* MXCNX 6,082 7,468 23 4,975,054 (1) (3) (5) (10) (7) Dec-14 (1) 4 15 10.3 10.4 10.0 8.7 98 94 2.9 13.6 1.3 1.4 9.2 33

Note: Prices are as of 9 December 2015

* Country/ sector aggregates are for the coverage above

Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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Hong Kong—valuation summary Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/BV EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Automobiles & Components Mark Mao - 852 2101 6710

Fuyao Glass (H) 3606 HK O HKD 19.14 22.00 15 11,970 4.8 0 4 7 na na 1 7 13 na na Dec-14 (9) 23 0 14.3 15.7 12.7 12.7 96 102 3.2 18.6 2.2 5.3 19.0 (13) Sector* #N/A #N/A na na na na na na na na na na Dec-14 na na na na na na na na na na na nm

Banks Anand Swaminathan - 65 6212 3012

BEA 23 HK U HKD 27.00 22.00 (19) 9,201 9.9 (2) (4) (7) (14) (12) (1) (1) (3) (6) (5) Dec-14 (18) 6 6 10.4 12.6 11.9 11.2 91 98 3.8 7.3 0.9 na na na

BoCHK 2388 HK N HKD 23.70 25.00 5 32,332 48.8 (0) (2) (6) (9) (10) 0 1 (2) (1) (3) Dec-14 6 8 9 10.4 9.8 9.0 8.2 98 94 4.7 14.0 1.3 na na na DSB 2356 HK N HKD 14.42 14.20 (2) 2,609 3.0 (4) (6) (4) 16 11 (4) (3) 0 24 18 Dec-14 10 3 8 10.1 9.2 8.9 8.2 101 103 2.5 10.3 0.9 na na na DSF 440 HK N HKD 38.30 41.00 7 1,656 1.9 (5) (9) (10) (15) (16) (4) (6) (6) (8) (9) Dec-14 8 4 14 7.2 6.7 6.5 5.7 108 109 3.3 9.6 0.6 na na na

Hang Seng Bank 11 HK N HKD 143.3 150.0 5 35,350 31.1 1 0 0 11 13 1 3 5 19 20 Dec-14 (4) 15 13 16.3 16.9 14.7 13.0 71 98 4.9 11.5 1.9 na na na Sector* 2 81,147 (0) (1) (3) (0) 0 0 2 2 10 8 Dec-14 0 10 10 12.2 12.2 11.1 10.1 88 97 4.6 11.7 1.4 na na na

Capital Goods Edmond Huang - 852 2101 6701

CSCI 3311 HK O HKD 12.68 14.00 10 6,637 9.3 5 4 6 17 14 5 7 10 24 22 Dec-14 24 17 12 15.2 12.3 10.5 9.4 96 93 2.4 18.9 2.2 1.2 9.9 13

Conglomerates Kelvin Tam / Gerald Wong / Kenneth Fong - 852 2101 6582 / 65 6212 3037 / 852 2101 6395

CKH 1 HK O HKD 101.8 142.0 39 50,698 96.1 0 (2) (1) 36 30 0 1 3 43 37 Dec-14 (47) 9 7 6.5 12.2 11.3 10.5 101 96 2.9 7.9 1.0 1.3 5.1 23

Hopewell 54 HK O HKD 26.80 34.30 28 3,014 1.5 (2) (2) (4) (5) (3) (2) 1 (0) 2 4 Jun-15 19 (26) 10 14.1 11.9 16.0 14.5 105 105 4.5 4.3 0.5 9.9 20.2 (1) Jardine Matheson JM SP N USD 49.60 57.00 15 34,837 16.3 0 (1) (8) (19) (16) 0 2 (4) (11) (9) Dec-14 (7) 8 17 12.0 12.9 11.9 10.2 95 93 2.3 7.3 0.9 1.0 10.3 10 Jardine Strategic JS SP N USD 27.63 33.00 19 30,809 7.1 0 1 (6) (19) (20) 0 4 (2) (12) (13) Dec-14 (10) 9 20 10.4 11.5 10.6 8.8 92 90 0.9 6.1 0.7 1.1 9.9 8

Wharf 4 HK N HKD 43.75 48.26 10 17,110 27.3 (1) (3) (4) (22) (21) (1) 0 (0) (14) (13) Dec-14 47 7 (4) 16.2 11.0 10.3 10.7 104 103 4.1 3.9 0.4 4.6 10.1 19 Wheelock 20 HK N HKD 32.80 37.50 14 8,599 6.0 (3) (3) (7) (9) (12) (2) 0 (3) (2) (5) Dec-14 39 (8) (11) 8.2 5.9 6.5 7.3 112 100 3.3 5.7 0.3 3.0 7.8 27 Sector* 24 145,067 (0) (1) (5) 1 (1) 0 2 1 10 7 Dec-14 (20) 6 8 9.1 11.4 10.7 9.9 99 95 2.5 6.2 0.7 1.4 7.4 17

Consumer Durables & Apparel

Baiding Rong / Eva Wang / Isis Wong - 852 2101 6703 / 852 2101 7365 / 852 2101 7109

CTF Jewellery 1929 HK N HKD 5.30 6.40 21 6,839 3.5 (1) (6) (15) (45) (43) (0) (3) (11) (38) (36) Mar-15 (34) 25 18 9.7 14.8 11.8 10.0 91 100 12.8 9.0 1.3 0.8 9.0 (6) Chow Sang Sang 116 HK N HKD 13.18 15.00 14 1,151 0.5 0 (0) (14) (36) (35) 1 3 (10) (28) (28) Dec-14 3 (9) 17 8.2 8.0 8.8 7.5 98 89 3.7 12.4 1.0 0.4 6.2 (12) Hisense Kelon(H) 921 HK O HKD 3.93 4.90 25 1,632 0.6 0 1 (0) (43) (41) 1 4 5 (33) (34) Dec-14 (38) 29 7 6.6 10.6 8.2 7.7 44 49 0.0 11.4 1.1 0.5 23.0 (1)

Luk Fook 590 HK N HKD 16.50 19.00 15 1,254 3.2 (4) (4) (20) (43) (38) (3) (1) (16) (36) (31) Mar-15 (33) 20 13 6.0 9.0 7.5 6.6 87 98 4.4 12.2 1.1 0.5 5.1 (22) Pacific Textiles 1382 HK N HKD 11.88 13.30 12 2,217 3.1 (1) (2) 6 16 18 (1) 1 10 23 25 Mar-15 7 6 10 16.0 14.9 14.1 12.8 99 95 6.7 34.8 5.5 2.4 12.6 3 Prada 1913 HK U HKD 27.00 23.50 (13) 8,914 5.9 2 0 (14) (39) (39) 3 3 (10) (31) (32) Jan-15 (9) 0 5 18.1 20.0 20.0 19.0 100 92 3.4 13.3 2.6 2.2 8.6 (9)

Samsonite 1910 HK O HKD 22.55 27.70 23 4,102 12.8 (1) (2) (6) (2) (6) (1) 1 (2) 6 1 Dec-14 6 21 16 22.0 20.8 17.3 14.9 94 98 2.1 14.8 3.0 1.6 10.0 (11) Techtronic 669 HK O HKD 30.00 34.20 14 7,096 14.3 1 (1) (2) 20 16 2 2 2 28 23 Dec-14 23 30 22 23.7 19.3 14.8 12.1 105 112 1.3 17.5 3.2 1.4 12.0 5 Texwinca 321 HK N HKD 7.85 8.00 2 1,400 2.5 (0) (1) (1) 17 11 0 2 3 25 18 Mar-15 23 11 10 13.9 11.3 10.1 9.3 104 103 8.4 15.6 1.7 0.8 7.3 (41)

Sector* 9 32,974 0 (2) (9) (17) (18) 1 1 (3) (7) (11) Dec-14 (14) 8 15 16.1 16.1 14.4 12.6 98 98 4.9 13.6 2.1 1.2 9.4 (7)

Consumer Staples Isis Wong - 852 2101 7109

L'Occitane 973 HK U HKD 15.28 14.00 (8) 2,912 3.0 (2) (3) (3) (22) (21) (2) (0) 1 (14) (14) Mar-15 (3) 16 20 21.7 22.4 19.3 16.1 103 103 1.6 13.7 3.0 1.8 10.0 (36)

Diversified Financials Arjan van Veen - 852 2101 7508

China Everbright 165 HK O HKD 17.44 25.00 43 3,792 17.4 (0) (5) (14) (6) (7) 0 (2) (10) 2 (0) Dec-14 96 1 14 11.6 5.9 5.8 5.1 111 100 5.7 12.9 0.7 na na na Hong Kong Exchange 388 HK U HKD 198.3 170.0 (14) 30,923 245.9 (3) (4) (7) 15 12 (2) (1) (3) 23 19 Dec-14 51 (7) 11 44.7 29.7 31.8 28.6 98 86 3.0 31.3 7.8 na na na

VP 806 HK N HKD 9.06 9.00 (1) 2,161 13.6 (2) (5) (2) 40 39 (2) (2) 2 47 46 Dec-14 (21) 38 24 19.9 25.1 18.2 14.6 68 71 1.0 17.2 4.2 na na na Sector* (8) 36,876 (2) (4) (7) 15 12 (2) (1) (2) 25 19 Dec-14 57 (2) 13 32.7 20.8 21.1 18.7 100 90 3.2 20.0 3.7 na na na

Hotels, Restaurants & Leisure

Isis Wong / Kenneth Fong / Sophie Chiu - 852 2101 7109 / 852 2101 6395 / 852 2101 7657

China Travel HK 308 HK O HKD 3.09 3.80 23 2,212 6.2 (0) (3) (14) 17 25 0 0 (10) 24 32 Dec-14 (21) (33) 25 10.0 12.7 19.0 15.3 112 84 3.6 8.7 1.1 3.5 8.1 (12) Galaxy 27 HK O HKD 22.85 37.60 65 12,558 70.7 (0) (5) (14) (47) (50) 0 (2) (10) (39) (43) Dec-14 (55) 54 9 9.5 20.9 13.5 12.4 89 122 1.5 11.9 2.4 1.7 10.2 (17) MGM China 2282 HK O HKD 9.89 20.00 102 4,849 10.7 (0) (7) (18) (48) (50) 0 (4) (14) (40) (43) Dec-14 (41) (4) 62 6.6 11.2 11.7 7.2 108 143 5.3 47.8 4.9 2.6 10.4 105

MPEL MPEL US O USD 15.65 23.30 49 8,508 19.0 0 (6) (11) (38) (35) 0 (3) (7) (31) (28) Dec-14 (73) 240 12 14.4 54.0 15.9 14.2 81 172 0.6 3.8 2.0 2.3 11.3 23 Macau Legend 1680 HK U HKD 1.05 1.05 0 863 3.2 0 (1) (12) (64) (63) 0 2 (8) (56) (56) Dec-14 (126) nm 63 14.1 nm 65.8 40.3 57 nm 0.0 (1.7) 0.9 5.4 25.2 18 Melco 200 HK N HKD 10.70 14.40 35 2,135 4.8 1 (1) (15) (37) (36) 1 2 (11) (30) (29) Dec-14 (79) 341 11 11.1 52.5 11.9 10.8 98 199 0.4 2.5 1.3 43.9 nm (9)

NagaCorp 3918 HK N HKD 5.01 5.50 10 1,475 2.3 0 (2) (9) (21) (9) 1 1 (5) (13) (1) Dec-14 32 (21) (30) 10.8 8.2 10.3 14.8 100 93 8.5 27.2 2.1 2.2 5.1 (36) SJM 880 HK O HKD 5.66 8.60 52 4,131 13.0 (0) (4) (11) (54) (56) 0 (1) (7) (47) (49) Dec-14 (59) 2 6 4.7 11.4 11.2 10.5 92 115 6.1 11.6 1.4 0.3 4.3 (62) Sands China 1928 HK O HKD 26.15 39.50 51 27,227 76.5 1 (5) (8) (31) (34) 1 (2) (4) (24) (27) Dec-14 (39) 13 24 10.7 17.4 15.3 12.4 106 120 7.6 25.4 4.6 4.1 13.2 37

Tsui Wah 1314 HK N HKD 1.76 2.00 14 321 0.3 0 (3) (3) (36) (32) 0 0 1 (28) (25) Mar-15 (5) 14 11 15.9 16.8 14.7 13.2 90 96 4.2 11.8 1.9 1.0 7.3 (47) Wynn Macau 1128 HK O HKD 9.29 16.80 81 6,228 20.1 2 (6) (18) (55) (55) 2 (3) (14) (47) (48) Dec-14 (57) 42 72 7.5 17.4 12.3 7.1 103 156 0.0 48.5 11.1 3.5 13.9 485 Sector* 56 70,507 0 (5) (12) (38) (39) 1 (2) (6) (29) (32) Dec-14 (49) 29 25 9.3 18.2 14.1 11.3 100 129 4.3 15.1 2.8 2.4 11.4 14

Insurance Arjan van Veen / Chris Esson / Kevin R. Choquette - 852 2101 7508 / 44 20 7888 0294 / 416-352-4585

AIA Group 1299 HK O HKD 48.15 57.50 19 74,854 169.8 1 (1) (0) 12 10 1 2 4 19 17 Nov-14 (1) 28 17 21.7 21.8 17.0 14.6 91 103 1.2 10.9 2.3 na na na

Manulife 945 HK O HKD 120.9 162.8 35 30,622 0.7 (4) (7) (7) (19) (21) (3) (4) (3) (11) (14) Dec-14 17 16 15 14.3 12.3 10.6 9.2 99 97 3.1 9.9 1.1 na na na Prudential 2378 HK O HKD 176.2 234.6 33 58,576 0.1 0 (4) (4) (3) (6) 0 (1) 1 5 2 Dec-14 32 13 12 17.4 13.2 11.7 10.5 107 107 2.8 23.7 3.0 na na na Sector* 27 164,052 (0) (3) (3) 1 (1) 0 (0) 3 11 6 Dec-14 10 18 14 16.8 15.3 13.0 11.4 100 105 2.2 13.6 2.0 na na na

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Hong Kong—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Media David Hao - 852 2101 7310

OSGH 1132 HK O HKD 0.60 1.10 83 212 1.8 (2) (8) (9) 21 18 (1) (5) (5) 29 25 Dec-14 74 321 81 127.2 73.1 17.4 9.6 205 108 0.0 1.3 0.9 1.4 15.1 30

Metals & Mining Trina Chen / Joy Zhang - 852 2101 7031 / 852 2101 7083

MMG 1208 HK O HKD 1.55 2.90 87 1,058 1.3 4 (5) (9) (35) (36) 4 (2) (5) (28) (29) Dec-14 (203) nm (6) 10.2 nm 3.5 3.7 134 359 0.0 (6.6) 0.7 5.8 21.0 371

Rusal 486 HK O HKD 2.66 4.10 54 5,215 0.6 (0) (2) (11) (49) (50) 0 1 (7) (41) (43) Dec-14 367 (26) 48 17.8 3.8 5.1 3.5 105 103 0.0 52.5 1.6 0.9 3.7 218 Sector* 60 6,273 0 (3) (10) (47) (48) 1 0 (5) (37) (40) Dec-14 218 4 36 15.8 5.0 4.8 3.5 108 123 0.0 30.0 1.3 1.8 7.6 288

Paper & Forest Products Joy Zhang - 852 2101 7083

Lee & Man Paper 2314 HK O HKD 4.61 7.10 54 2,727 7.5 5 2 (6) 6 13 6 5 (2) 14 20 Dec-14 21 20 9 11.3 9.4 7.8 7.2 102 107 3.7 12.5 1.1 1.9 8.9 62 Nine Dragons Paper 2689 HK O HKD 4.75 6.30 33 2,860 7.4 (3) 0 (10) (30) (26) (3) 3 (6) (23) (19) Jun-15 42 27 11 13.0 9.1 7.2 6.4 108 111 3.3 7.9 0.7 1.4 6.6 88

Sector* 43 5,587 1 1 (8) (12) (7) 1 4 (3) (3) 0 Dec-14 13 25 12 11.2 9.9 7.9 7.1 103 108 3.1 8.9 0.9 1.5 7.9 81

Real Estate Kelvin Tam - 852 2101 6582

CK Property 1113 HK O HKD 51.55 77.60 51 25,673 72.2 0 (3) 0 na na 0 0 5 na na Dec-14 2 31 (4) 10.3 10.1 7.8 8.1 119 134 4.9 8.1 0.8 3.9 9.9 18 Great Eagle 41 HK U HKD 25.10 20.95 (17) 2,153 1.0 (0) (0) 0 (1) (3) 0 3 4 7 5 Dec-14 (6) 4 6 8.6 9.1 8.8 8.3 109 106 2.8 3.4 0.3 6.3 13.4 26 Hang Lung Properties 101 HK N HKD 18.02 24.70 37 10,457 14.4 (1) (2) (3) (17) (17) (0) 1 1 (10) (10) Dec-14 (42) (7) (1) 8.1 14.0 15.1 15.2 97 87 4.2 4.3 0.6 6.1 9.7 (4)

Henderson Land 12 HK O HKD 47.05 60.60 29 20,075 22.0 (2) (4) (3) (5) (0) (1) (1) 1 3 7 Dec-14 (2) (5) 9 15.2 15.5 16.3 15.0 99 94 2.3 4.1 0.6 6.8 20.5 5 Hongkong Land HKL SP O USD 7.03 9.83 40 16,540 22.8 0 (2) (5) 4 3 0 1 (1) 12 10 Dec-14 (1) (11) 29 18.6 18.8 21.0 16.2 99 82 2.7 3.3 0.6 9.6 21.2 9 Hysan 14 HK U HKD 32.55 29.58 (9) 4,455 5.6 (1) (1) (2) (6) (8) (0) 2 2 2 (1) Dec-14 7 4 2 16.0 15.0 14.3 14.1 100 101 4.0 3.4 0.5 10.7 11.9 3

Kerry Prop 683 HK N HKD 21.65 22.30 3 4,039 6.7 1 (0) (4) (23) (21) 1 3 0 (15) (14) Dec-14 (15) (5) 14 7.1 8.4 8.8 7.7 101 86 3.6 4.6 0.4 5.1 11.2 26 Midland 1200 HK N HKD 3.21 2.94 (8) 297 0.2 (1) (1) (4) (19) (19) (0) 2 0 (11) (11) Dec-14 32 34 61 36.0 27.3 20.4 12.7 97 118 2.9 5.9 1.6 0.2 3.8 (91) NWD 17 HK N HKD 7.72 8.30 8 8,962 16.4 (2) (1) (4) (13) (14) (1) 2 0 (6) (7) Jun-15 (60) 3 0 3.6 8.8 8.6 8.5 108 107 5.4 4.3 0.4 2.1 7.5 25

SHKP 16 HK O HKD 94.60 152.1 61 35,317 62.9 (1) (3) (4) (20) (16) (1) (0) 0 (12) (9) Jun-15 26 2 4 13.4 10.6 10.4 10.1 104 101 3.8 5.6 0.6 3.9 9.7 9 Sino Land 83 HK O HKD 11.56 15.30 32 9,075 7.6 (1) (2) 1 (8) (7) (0) 1 5 (0) 0 Jun-15 3 (2) 3 13.3 12.9 13.2 12.7 97 98 4.6 4.5 0.6 3.1 10.0 (18) Swire Properties 1972 HK N HKD 23.00 25.50 11 17,361 6.9 (1) (1) 2 0 (2) (1) 2 6 8 5 Dec-14 2 4 3 18.8 18.5 17.9 17.4 98 100 2.9 3.5 0.6 10.6 17.1 17

Sector* 36 154,404 (1) (2) (2) (10) (8) (0) 1 3 0 (1) Dec-14 (11) 2 3 10.7 12.0 11.8 11.4 111 105 3.7 5.0 0.6 4.7 12.4 11

REITS Kelvin Tam - 852 2101 6582

Champion REIT 2778 HK O HKD 3.98 5.22 31 2,964 2.6 (1) (2) 1 11 14 (0) 1 5 18 21 Dec-14 (49) 14 2 11.6 22.5 19.8 19.4 97 102 4.7 2.4 0.5 21.8 28 Link REIT 823 HK U HKD 46.30 41.30 (11) 13,457 29.9 (1) (2) 2 (5) (5) (0) 1 6 3 2 Mar-15 (2) 5 3 23.5 23.9 22.8 22.1 97 95 4.2 3.7 0.9 21.9 20 Spring REIT 1426 HK O HKD 3.06 4.26 39 442 0.4 (0) (1) (1) (16) (18) 0 2 3 (9) (10) Dec-14 5 1 (2) 11.5 11.0 10.9 11.1 94 101 9.0 4.5 0.5 18.0 55

Sector* (2) 16,863 (1) (2) 2 (2) (2) (0) 1 7 8 5 Dec-14 (13) 5 3 20.0 22.9 21.8 21.2 97 97 4.3 3.5 0.8 21.7 22

Retailing Eva Wang - 852 2101 7365

Lifestyle Intl 1212 HK O HKD 11.82 16.70 41 2,444 1.2 1 (1) 2 (28) (20) 2 2 6 (20) (12) Dec-14 10 5 5 9.0 8.2 7.8 7.4 107 110 5.4 19.9 1.5 3.3 7.4 11 Sa Sa 178 HK U HKD 2.52 1.70 (33) 925 1.9 (1) (8) (4) (53) (55) (0) (5) 0 (45) (47) Mar-15 (48) 13 12 8.5 16.5 14.6 13.0 81 88 7.1 18.7 3.2 0.8 10.2 (11) Sector* 21 3,369 1 (3) 0 (35) (29) 1 (0) 6 (25) (22) Dec-14 (4) 2 6 8.8 9.1 9.0 8.5 103 105 6.0 20.4 1.8 1.9 7.7 8

Technology Hardware Randy Abrams / Thompson Wu - 886 2 2715 6366 / 886 2 2715 6386

ASM Pacific 522 HK O HKD 62.60 75.00 20 3,251 7.9 0 3 5 (15) (14) 1 6 9 (8) (6) Dec-14 (46) 12 27 13.7 25.5 22.8 17.9 90 77 2.2 12.7 3.2 1.9 11.4 (16)

Lenovo Group 992 HK O HKD 8.32 11.00 32 11,926 57.2 (1) (1) 10 (18) (22) (1) 2 14 (11) (15) Mar-15 (143) nm 23 14.0 nm 10.4 8.4 3 110 1.7 (10.0) 3.6 0.3 17.1 14 Sector* 30 15,177 (1) (0) 9 (18) (20) (1) 3 14 (8) (13) Dec-14 (94) nm 67 13.9 245.9 16.6 9.9 18 95 2.0 1.1 3.3 0.3 12.7 5

Telecommunication Services

Varun Ahuja - 65 6212 3017

HKBN 1310 HK O HKD 9.78 10.80 10 1,269 3.0 (1) (2) 3 na na (1) 1 7 na na Aug-15 57 29 22 40.9 26.1 20.2 16.6 91 98 4.5 29.4 7.9 5.0 11.7 226

HKT Trust 6823 HK O HKD 9.61 10.80 12 9,389 8.3 (1) (1) 3 (5) (5) (0) 2 7 3 2 Dec-14 27 14 (0) 22.8 17.9 15.8 15.8 106 110 5.5 10.7 1.9 3.3 10.6 85 HTHK 215 HK N HKD 2.72 2.95 8 1,691 1.1 1 0 (2) (17) (11) 1 3 2 (9) (4) Dec-14 10 (6) 2 15.7 14.2 15.2 14.8 97 88 5.3 8.1 1.1 0.9 6.5 22 PCCW 8 HK N HKD 4.55 4.40 (3) 4,474 5.9 0 (1) 7 (14) (12) 1 2 11 (7) (5) Dec-14 (30) 0 (1) 10.1 14.5 14.5 14.7 96 92 5.2 22.5 3.2 1.5 9.1 156

Smartone 315 HK O HKD 11.90 17.50 47 1,630 3.1 1 4 (8) (8) 5 2 7 (4) (1) 12 Jun-15 (5) 11 3 13.4 14.0 12.7 12.3 97 103 5.4 22.6 3.1 0.8 3.9 (36) Sector* 11 18,453 (0) (1) 2 (9) (6) 0 2 8 1 1 Dec-14 3 8 2 17.2 16.7 15.5 15.2 100 100 5.2 13.1 2.2 1.9 9.0 83

Transportation Jinsong Du / Timothy Ross - 852 2101 6589 / 65 6212 3337

Cathay Pacific 293 HK U HKD 13.28 12.50 (6) 6,741 8.8 2 (1) (13) (21) (24) 2 2 (9) (14) (17) Dec-14 19 29 (40) 13.2 11.1 8.6 14.4 80 93 4.0 8.9 1.0 1.0 4.4 78 Kerry Logistics 636 HK O HKD 11.24 14.00 25 2,457 1.7 (1) (4) (6) (9) (7) (0) (1) (1) (1) 0 Dec-14 21 15 8 19.5 16.1 14.0 13.0 103 110 1.5 7.6 1.2 0.9 8.0 1

OOIL 316 HK U HKD 36.60 36.00 (2) 2,955 4.2 2 2 (1) (19) (15) 3 5 3 (12) (8) Dec-14 (1) 34 1 11.3 11.4 8.5 8.5 77 83 2.3 5.5 0.6 0.8 8.2 43 Pacific Basin 2343 HK O HKD 1.80 2.45 36 452 2.2 2 (6) (25) (42) (44) 2 (3) (21) (35) (37) Dec-14 nm nm 200 nm nm 23.0 7.7 152 nm 0.0 (2.6) 0.5 0.7 7.5 43 Sector* 3 12,606 1 (1) (9) (19) (19) 2 2 (4) (9) (12) Dec-14 19 34 (20) 15.1 12.7 9.5 11.8 83 94 3.0 6.8 0.8 0.9 5.3 53

Utilities Dave Dai - 852 2101 7358

CKI 1038 HK O HKD 67.70 80.00 18 22,010 19.7 (0) (1) (4) 18 20 0 2 0 26 27 Dec-14 (67) 3 3 5.2 15.6 15.2 14.7 104 105 3.9 11.1 1.7 26.6 55.0 5

CLP 2 HK U HKD 64.30 62.00 (4) 20,961 26.8 (0) (1) (3) (4) (3) (0) 2 1 3 5 Dec-14 (5) 2 2 14.5 15.2 14.9 14.7 97 95 4.3 11.9 1.8 2.0 10.8 66 HKCG 3 HK U HKD 15.02 13.10 (13) 22,406 23.5 (1) (3) (4) (7) (7) (0) (0) (0) 1 (0) Dec-14 4 4 7 24.4 23.5 22.6 21.1 95 92 2.6 13.7 3.1 6.1 19.7 32 HKE 2638 HK N HKD 6.08 5.30 (13) 6,932 9.3 (0) (3) 5 19 21 0 (0) 9 26 28 Dec-14 (6) 2 (8) 15.7 16.7 16.5 17.8 96 99 6.2 6.5 1.1 8.9 12.2 87

PAH 6 HK N HKD 69.65 80.00 15 19,181 32.1 (0) (1) (7) (7) (5) 0 2 (3) 0 2 Dec-14 (87) 1 2 2.4 18.7 18.6 18.2 101 99 3.8 6.4 1.2 42.3 75.7 (47) Sector* 3 91,489 (0) (2) (4) 1 3 0 1 2 11 10 Dec-14 (65) 2 2 6.1 17.6 17.3 16.9 99 98 3.8 9.7 1.7 4.8 18.2 17

Country Average* MXCNX 6,082 7,440 22 864,603 (1) (3) (5) (10) (7) Dec-14 (21) 11 10 11.0 14.0 12.7 11.4 100 102 3.3 8.1 1.1 1.9 10.3 19

Note: Prices are as of 9 December 2015, * Country/ sector aggregates are for the coverage above , Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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India—valuation summary Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Automobiles & Components

Akshay Saxena / Anantha Narayan / Jatin Chawla - 91 22 6777 3825 / 91 22 6777 3730 / 91 22 6777 3719

Apollo Tyres APTY IN O INR 155.8 200.0 28 1,188 7.6 0 (5) (3) (30) (30) 0 (2) 1 (22) (21) Mar-15 (1) 4 8 7.5 7.6 7.3 6.7 96 97 1.4 19.0 1.3 0.8 4.7 23 Ashok Leyland AL IN N INR 89.70 83.00 (7) 3,826 22.4 0 (3) 1 75 79 0 0 4 83 88 Mar-15 230 29 20 76.2 23.1 17.9 15.0 111 96 1.3 20.1 4.3 1.5 12.6 32

BKT BIL IN N INR 649.3 700.0 8 941 0.7 0 (0) (2) 6 5 0 3 1 14 14 Mar-15 9 (2) 29 13.3 12.1 12.4 9.6 98 92 0.5 20.5 2.3 2.3 10.0 40 Bajaj Auto BJAUT IN N INR 2,462 2,480 1 10,680 13.2 0 (1) 2 1 (5) 0 2 6 9 4 Mar-15 34 12 11 23.5 17.6 15.7 14.2 107 104 2.4 33.4 5.4 2.5 12.0 (79) Bharat Forge BHFC IN N INR 827.4 900.0 9 2,887 15.5 0 (2) (6) (12) (13) 0 1 (2) (4) (3) Mar-15 5 24 22 26.6 25.3 20.4 16.7 91 92 1.2 20.6 4.9 2.7 14.0 38

Bosch Ltd. BOS IN U INR 18,506 15,300 (17) 8,709 9.3 0 (0) (4) (5) (8) 0 3 (1) 3 2 Mar-15 25 20 20 55.9 44.6 37.3 31.0 97 94 0.5 16.7 7.0 5.2 29.4 (28) Eicher Motors EIM IN N INR 16,326 18,400 13 6,642 22.7 0 (0) 2 8 14 0 3 6 16 23 Dec-14 65 57 30 71.9 43.5 27.8 21.3 152 119 0.6 35.5 13.7 3.6 23.4 (35) Exide Industries EXID IN N INR 139.7 150.0 7 1,779 3.6 0 (4) (3) (22) (19) 0 (0) 0 (13) (9) Mar-15 8 15 13 21.7 20.2 17.5 15.5 95 93 1.6 13.9 2.7 1.7 11.7 (2)

Hero Motocorp HMCL IN N INR 2,603 2,500 (4) 7,790 15.6 0 (3) (1) (16) (17) 0 1 3 (8) (8) Mar-15 20 11 11 20.5 17.0 15.3 13.8 100 96 2.8 42.2 6.6 1.7 11.5 (34) Mahindra & Mahindra MM IN O INR 1,320 1,550 17 12,285 21.7 0 (4) 6 7 4 0 (0) 9 15 14 Mar-15 12 25 14 27.1 24.3 19.5 17.1 93 93 1.0 16.3 3.7 2.0 17.0 (3) Mahindra CIE MACA IN O INR 248.8 300.0 21 1,205 1.1 0 (5) (0) 17 4 0 (1) 3 25 14 Mar-15 18 44 32 33.4 28.3 19.7 14.9 93 92 0.4 14.1 3.8 1.7 14.6 57

Maruti Suzuki MSIL IN O INR 4,543 5,200 14 20,570 45.3 0 (2) (2) 37 36 0 2 1 45 46 Mar-15 54 44 17 37.0 24.1 16.7 14.2 106 116 0.9 22.1 4.9 1.8 11.1 (104) Motherson Sumi MSS IN U INR 277.5 240.0 (14) 5,501 17.9 0 (2) (2) (9) (0) 0 1 1 (0) 9 Mar-15 28 26 20 35.7 28.0 22.2 18.5 97 88 1.8 36.4 9.4 1.0 11.9 65 Tata Motors TTMT IN O INR 401.9 490.0 22 17,392 57.2 0 (3) (2) (18) (19) 0 1 1 (10) (10) Mar-15 (18) 36 8 9.2 11.3 8.4 7.8 98 95 0.3 18.3 1.8 0.6 4.2 62

WABCO WIL IN O INR 6,063 6,300 4 1,724 0.9 0 (2) (8) 35 35 0 2 (4) 43 44 Mar-15 85 50 23 95.3 51.4 34.2 27.8 111 111 0.1 23.2 10.8 6.1 33.0 (28) Sector* 8 103,117 0 (2) (1) 6 5 0 1 3 14 15 Dec-14 10 25 17 22.5 20.4 16.3 14.0 101 100 1.1 21.4 4.1 1.3 9.1 7

Banks Ashish Gupta - 91 22 6777 3895

Axis Bank AXSB IN O INR 458.6 626.0 37 16,349 68.3 0 (0) (1) (9) (6) 0 3 2 (0) 3 Mar-15 14 23 23 14.7 12.9 10.5 8.5 98 99 1.4 17.5 2.1 na na na BOB BOB IN N INR 161.9 162.0 0 5,589 21.8 0 (7) (5) (25) (23) 0 (3) (2) (17) (14) Mar-15 (16) 55 40 10.4 12.4 8.0 5.7 82 91 3.6 7.3 0.9 na na na

BOI BOI IN U INR 118.6 113.0 (5) 1,408 7.6 0 (7) (11) (61) (58) 0 (3) (8) (52) (48) Mar-15 (106) nm 49 4.5 nm 4.3 2.9 nm 111 0.0 (0.4) 0.3 na na na HDFC Bank HDFCB IN O INR 1,049 1,360 30 39,681 23.8 0 (2) (2) 10 13 0 1 2 19 23 Mar-15 17 25 24 24.9 21.2 17.0 13.7 101 101 1.0 18.6 3.7 na na na ICICI ICICIBC IN N INR 261.5 306.0 17 22,774 55.2 0 (3) (1) (26) (25) 0 0 3 (18) (16) Mar-15 22 18 18 14.6 12.0 10.1 8.6 101 102 2.4 14.9 1.7 na na na

IOB IOB IN U INR 30.70 19.00 (38) 792 1.1 0 (6) 0 (51) (48) 0 (2) 4 (42) (38) Mar-15 nm nm nm nm nm nm 25.7 25 nm 0.0 (4.5) 0.3 na na na IndusInd Bank IIB IN O INR 943.8 1,080 14 8,392 15.9 0 0 2 18 22 0 4 6 26 32 Mar-15 27 23 26 27.8 21.8 17.7 14.1 106 105 0.8 17.7 3.2 na na na J&K Bank JKBK IN O INR 80.40 107.0 33 584 0.7 0 (5) (3) (46) (45) 0 (1) 0 (38) (35) Mar-15 52 22 20 7.7 5.0 4.1 3.4 103 106 5.6 12.1 0.6 na na na

Kotak KMB IN N INR 674.6 682.0 1 18,519 13.8 0 (1) 2 7 10 0 3 6 15 19 Mar-15 (45) 39 24 17.1 31.0 22.4 18.1 104 107 0.3 14.4 3.7 na na na PNB PNB IN U INR 132.2 110.0 (17) 3,889 10.7 0 (5) (2) (40) (39) 0 (2) 1 (31) (30) Mar-15 (12) 42 21 6.5 7.3 5.2 4.3 100 104 4.0 8.9 0.6 na na na SBI SBIN IN N INR 235.9 247.0 5 27,447 55.8 0 (4) (4) (24) (23) 0 (0) (1) (16) (14) Mar-15 22 21 23 13.4 11.0 9.1 7.4 103 100 2.0 11.7 1.2 na na na

UnionBank UNBK IN O INR 160.8 196.0 22 1,656 12.7 0 (6) (2) (33) (26) 0 (2) 2 (25) (17) Mar-15 24 22 29 5.7 4.6 3.8 2.9 105 107 5.5 11.7 0.5 na na na Yes Bank YES IN N INR 725.7 811.0 12 4,559 42.1 0 (3) (5) (6) 1 0 0 (1) 2 10 Mar-15 23 21 26 15.1 12.3 10.1 8.0 99 98 1.7 19.6 2.2 na na na Sector* 16 151,639 0 (3) (2) (8) (6) 0 1 2 0 4 Dec-14 4 24 26 15.6 15.0 12.1 9.7 101 100 1.5 12.4 1.7 na na na

Building Materials & Construction

Anubhav Aggarwal - 91 22 6777 3808

ACC ACC IN N INR 1,338 1,500 12 3,765 5.8 0 (2) (2) (4) (7) 0 2 2 4 3 Dec-14 (14) 58 18 21.6 25.3 16.0 13.5 115 128 2.0 11.8 3.0 1.9 16.0 (26) Ambuja Cements ACEM IN N INR 194.5 210.0 8 4,523 8.5 0 (3) (5) (15) (14) 0 1 (2) (7) (5) Dec-14 (36) 69 27 20.1 31.4 18.6 14.6 89 110 2.3 9.4 2.9 2.7 16.5 (45) Dalmia DBEL IN O INR 782.1 675.0 (14) 952 0.4 0 1 9 71 57 0 5 12 80 67 Mar-14 nm nm 262 nm nm 52.4 14.5 34 65 0.2 0.1 2.1 4.1 23.0 206

JK Cem JKCE IN O INR 656.0 750.0 14 688 0.3 0 (4) 2 3 8 0 (0) 5 11 17 Mar-14 (11) 140 93 51.9 58.6 24.5 12.7 50 114 0.3 4.6 2.7 2.0 14.8 126 JK Lakshmi JKLC IN O INR 330.1 415.0 26 582 0.7 0 (6) (6) (19) (15) 0 (3) (3) (10) (6) Mar-14 2 (24) 343 41.4 40.6 53.4 12.0 58 117 0.6 7.2 2.8 2.5 16.6 141 Ultratech Cement UTCEM IN O INR 2,850 3,525 24 11,721 13.1 0 0 3 7 15 0 4 7 15 24 Mar-15 22 60 17 37.3 30.6 19.1 16.3 96 106 0.4 12.8 3.7 3.2 16.6 25

Sector* 17 22,231 0 (1) 1 2 6 0 2 4 11 16 Dec-14 (5) 66 24 29.9 31.4 18.9 15.6 97 110 1.0 10.7 3.3 2.6 15.6 22

Capital Goods Anantha Narayan / Arnab Mitra / Lokesh Garg - 91 22 6777 3730 / 91 22 6777 3806 / 91 22 6777 3743

BHEL BHEL IN U INR 164.7 155.0 (6) 6,040 14.5 0 (5) (11) (38) (36) 0 (1) (7) (30) (27) Mar-15 41 29 25 28.4 20.1 15.6 12.5 146 110 1.1 5.7 1.1 0.7 10.1 (51) Cummins India KKC IN N INR 993.1 1,020 3 4,126 3.6 0 (2) (5) 13 9 0 2 (2) 22 18 Mar-15 19 26 10 42.2 35.5 28.2 25.7 94 98 1.6 25.6 8.7 5.3 31.0 (15) Havells HAVL IN O INR 292.3 330.0 13 2,736 4.7 0 1 13 6 (12) 0 5 17 15 (3) Mar-15 37 30 19 47.3 34.4 26.5 22.3 103 104 1.7 27.9 9.2 2.0 20.4 (48)

Kajaria Ceramics KJC IN N INR 944.9 975.0 3 1,125 1.5 0 (1) 7 60 61 0 3 10 69 71 Mar-15 28 23 23 42.8 33.4 27.2 22.0 100 97 0.5 27.1 8.2 3.1 17.2 18 L&T LT IN N INR 1,322 1,515 15 18,451 49.6 0 (2) (3) (12) (15) 0 1 1 (3) (6) Mar-15 11 32 17 26.8 24.1 18.3 15.7 104 105 1.3 11.7 2.7 2.2 17.1 190 Thermax TMX IN U INR 898.0 700.0 (22) 1,604 1.0 0 5 5 (16) (12) 0 8 9 (8) (3) Mar-15 9 13 23 41.3 37.9 33.4 27.1 90 87 0.7 12.6 4.6 2.0 21.3 (2)

Voltas VOLT IN O INR 292.0 345.0 18 1,448 9.2 0 (0) 6 21 10 0 3 10 29 19 Mar-14 51 3 35 43.2 28.6 27.8 20.5 100 99 0.8 17.2 4.6 1.6 20.7 (55) Sector* 8 35,530 0 (2) (2) (8) (12) 0 2 1 (0) (3) Dec-14 8 28 21 28.6 26.6 20.9 17.3 107 105 1.2 10.2 2.6 2.0 17.7 79

Chemicals Arnab Mitra - 91 22 6777 3806

Asian Paints APNT IN N INR 860.5 870.0 1 12,370 16.4 0 1 6 14 10 0 5 9 23 19 Mar-15 31 19 12 58.0 44.3 37.3 33.3 103 102 1.5 37.4 15.8 5.4 28.9 3

Conglomerates Anubhav Aggarwal - 91 22 6777 3808

Grasim Industries GRASIM IN O INR 3,734 4,250 14 5,141 3.2 0 (1) 2 10 11 0 3 6 18 20 Mar-14 (15) 19 51 16.6 19.5 16.5 10.9 100 95 0.5 7.9 1.5 1.3 7.9 21

Consumer Durables & Apparel

Arnab Mitra - 91 22 6777 3806

Page PAG IN U INR 12,807 10,900 (15) 2,144 3.3 0 (1) (2) 9 19 0 2 2 17 28 Mar-15 22 25 26 72.9 59.8 47.7 37.8 97 95 0.7 53.2 28.0 7.9 35.7 20 TTK Prestige TTKPT IN N INR 4,129 3,850 (7) 720 0.8 0 (0) 1 15 10 0 4 5 24 19 Mar-15 25 30 27 52.1 41.6 31.9 25.0 100 98 0.6 16.8 6.6 3.1 26.2 (13)

Sector* (13) 2,864 0 (1) (1) 11 17 0 3 3 19 26 Dec-14 20 26 27 67.6 56.5 44.8 35.3 98 96 0.6 31.0 16.1 5.9 34.4 3

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India—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Consumer Staples Anantha Narayan / Arnab Mitra - 91 22 6777 3730 / 91 22 6777 3806

Colgate CLGT IN O INR 981.8 1,110 13 4,002 6.2 0 0 2 10 9 0 4 6 18 18 Mar-15 7 24 20 47.8 44.6 36.0 29.9 98 104 1.7 74.1 31.7 6.3 28.2 (49) Dabur DABUR IN N INR 275.5 300.0 9 7,264 6.1 0 (3) 3 18 15 0 1 7 26 25 Mar-15 24 16 14 45.3 36.6 31.6 27.6 103 101 1.0 35.4 11.7 5.6 30.1 (9) Emami HMN IN O INR 993.1 1,240 25 3,378 3.8 0 3 (6) 26 37 0 7 (3) 34 46 Mar-15 17 28 21 46.4 39.5 30.9 25.6 112 115 0.0 40.3 14.1 9.1 33.2 32

GCPL GCPL IN O INR 1,243 1,480 19 6,345 4.4 0 (2) (8) 28 23 0 2 (4) 37 32 Mar-15 29 20 17 46.7 36.3 30.1 25.8 102 102 0.7 24.7 8.3 4.8 26.3 19 GSK Consumer SKB IN O INR 6,181 6,430 4 3,896 1.1 0 2 5 5 6 0 6 9 14 16 Mar-15 24 18 16 44.5 36.0 30.6 26.2 106 108 1.0 31.3 10.4 5.3 26.3 (98) Hindustan Unilever HUVR IN O INR 825.6 920.0 11 26,776 18.7 0 (0) 3 9 1 0 3 7 17 11 Mar-15 1 18 16 41.4 40.9 34.6 29.8 96 102 1.8 109.5 42.0 5.5 29.6 (83)

ITC ITC IN U INR 315.2 312.0 (1) 37,947 33.8 0 (10) (8) (14) (20) 0 (6) (4) (6) (11) Mar-15 6 14 13 26.3 24.8 21.7 19.2 100 101 2.1 31.2 7.3 6.2 17.5 (31) Kaveri KSCL IN O INR 397.6 650.0 63 412 5.0 0 (6) (12) (49) (49) 0 (2) (9) (40) (40) Mar-15 (34) 23 25 9.1 13.7 11.1 8.9 89 82 1.9 24.3 3.1 2.6 10.6 (51) Marico MRCO IN O INR 426.0 480.0 13 4,119 3.7 0 (1) 5 31 32 0 2 9 39 42 Mar-15 19 17 19 45.1 37.9 32.3 27.2 102 101 0.6 34.8 11.7 4.4 26.1 (11)

Nestle NEST IN N INR 5,825 6,000 3 8,417 7.7 0 (1) (5) (9) (8) 0 3 (2) (0) 2 Dec-14 (55) 152 29 47.4 105.4 41.9 32.5 52 101 1.2 19.7 21.8 7.0 35.5 (2) United Spirits UNSP IN N INR 3,116 3,400 9 6,788 10.6 0 0 (13) 12 12 0 4 (10) 20 21 Mar-14 nm nm 61 nm nm 108.6 67.7 127 94 0.0 (45.9) 67.6 5.5 116.5 708 Sector* 7 109,345 0 (4) (3) 2 (1) 0 (0) 0 11 8 Dec-14 8 20 16 39.1 36.2 30.0 24.9 99 101 1.5 36.7 12.4 5.9 25.0 (20)

Diversified Financials Ashish Gupta / Sunil Tirumalai - 91 22 6777 3895 / 91 22 6777 3714

Bajaj Finance BAF IN N INR 5,518 5,000 (9) 4,435 5.6 0 (1) 3 58 70 0 3 6 67 79 Mar-15 29 41 29 30.8 23.9 17.0 13.1 106 117 0.4 20.3 4.0 na na na

HDFC HDFC IN O INR 1,171 1,501 28 27,714 50.5 0 (3) (2) 3 6 0 0 2 12 15 Mar-15 38 20 17 35.9 26.0 21.7 18.5 103 107 1.8 21.8 5.4 na na na IDFC IDFC IN O INR 47.25 82.00 74 1,129 12.8 0 (11) (12) (39) (37) 0 (8) (9) (30) (28) Mar-15 (115) nm 25 4.3 nm 10.2 8.2 117 68 6.3 (1.6) 0.5 na na na Indiabulls Housing IHFL IN N INR 677.7 800.0 18 4,272 26.6 0 (6) (3) 48 52 0 (2) 0 56 61 Mar-15 16 23 25 12.3 10.6 8.6 6.9 107 111 5.6 27.2 2.5 na na na

LIC Housing Finance LICHF IN O INR 461.5 575.0 25 3,491 16.6 0 (4) (3) 6 7 0 (0) 1 14 16 Mar-15 23 39 25 16.6 13.5 9.7 7.7 101 116 1.3 20.2 2.5 na na na MMFSL MMFS IN O INR 238.3 280.0 17 2,031 4.9 0 0 6 (28) (24) 0 4 9 (19) (14) Mar-15 (12) 74 20 14.8 16.9 9.7 8.1 97 133 1.3 12.8 2.1 na na na Magma Fincorp MGMA IN O INR 95.00 120.0 26 337 0.2 0 (4) 5 (8) (9) 0 (1) 9 0 (0) Mar-14 25 34 18 13.1 10.5 7.8 6.6 103 134 1.4 11.0 1.1 na na na

SKS SKSM IN O INR 446.1 520.0 17 849 14.0 0 (3) (1) 8 28 0 1 2 16 37 Mar-15 43 39 36 29.9 20.9 15.0 11.0 96 101 0.0 22.8 4.3 na na na Shriram City SCUF IN N INR 1,674 1,700 2 1,654 0.7 0 (3) (6) (14) (1) 0 0 (2) (6) 8 Mar-15 6 33 30 18.3 17.2 12.9 9.9 100 112 1.3 14.4 2.3 na na na Shriram Transport SHTF IN N INR 854.8 970.0 13 2,907 9.0 0 (3) (4) (23) (25) 0 0 (1) (15) (16) Mar-15 39 22 45 18.9 13.6 11.2 7.7 104 102 1.2 14.5 1.9 na na na

Sector* 22 48,819 0 (3) (2) 8 12 0 0 2 16 21 Dec-14 7 29 26 22.3 20.9 16.2 13.0 102 108 1.9 16.3 3.2 na na na

Energy Badrinath Srinivasan / David Hewitt - 91 22 6777 3698 / 65 6212 3064

BPCL BPCL IN O INR 909.6 1,130 24 9,857 20.9 0 (2) 1 41 36 0 1 4 49 45 Mar-14 23 12 7 16.8 13.7 12.2 11.4 100 87 2.5 22.9 2.9 0.3 8.1 57 Cairn CAIR IN N INR 128.1 160.0 25 3,600 6.3 0 (7) (12) (47) (50) 0 (3) (8) (38) (40) Mar-15 (48) 66 0 5.4 10.3 6.2 6.2 72 114 7.0 3.9 0.4 0.4 0.9 (34) GAIL GAIL IN U INR 339.5 245.0 (28) 6,455 7.3 0 (6) 20 (24) (27) 0 (2) 23 (15) (18) Mar-15 (19) 28 26 13.8 16.9 13.2 10.5 97 95 1.7 7.6 1.2 0.8 8.5 23

GSPL GUJS IN O INR 131.7 142.0 8 1,111 1.4 0 (2) 3 16 29 0 2 7 24 38 Mar-14 (2) 32 13 17.7 18.1 13.6 12.1 100 111 0.7 11.8 2.0 7.5 8.6 15 HPCL HPCL IN O INR 831.7 1,080 30 4,221 20.2 0 (1) 5 52 43 0 2 8 60 52 Mar-15 77 28 8 18.8 10.6 8.3 7.7 84 101 5.3 17.4 1.8 0.5 8.1 202 IOCL IOCL IN O INR 422.1 495.0 17 15,360 14.6 0 (2) 2 27 21 0 1 6 36 31 Mar-14 (31) 78 36 14.5 20.9 11.7 8.6 151 78 1.7 7.1 1.4 0.3 11.6 57

OILI OINL IN N INR 374.0 445.0 19 3,370 3.7 0 (3) (6) (35) (35) 0 0 (3) (27) (25) Mar-15 14 19 12 8.6 7.6 6.4 5.7 102 111 5.2 13.2 1.0 2.0 5.2 (7) ONGC ONGC IN N INR 216.1 260.0 20 27,710 16.0 0 (8) (13) (37) (39) 0 (5) (10) (28) (29) Mar-15 (2) 20 27 10.1 10.3 8.6 6.8 80 86 4.4 9.7 1.0 1.7 5.6 30 Petronet LNG PLNG IN N INR 240.4 190.0 (21) 2,702 3.2 0 1 14 15 27 0 5 17 24 36 Mar-15 1 2 47 20.4 20.1 19.7 13.4 100 86 0.8 14.8 2.8 0.6 12.1 26

RIL RIL IN O INR 942.5 1,040 10 45,755 53.5 0 (3) (2) 6 0 0 0 2 14 10 Mar-15 1 (24) 26 12.9 12.8 16.8 13.3 89 61 1.6 10.5 1.3 1.5 10.1 50 Sector* 13 120,142 0 (4) (2) (1) (5) 0 (1) 1 8 5 Dec-14 (3) 7 18 11.6 12.0 11.2 9.8 87 83 2.8 10.5 1.2 0.8 7.6 39

Healthcare Anubhav Aggarwal - 91 22 6777 3808

Apollo Hospitals APHS IN N INR 1,347 1,175 (13) 2,809 4.5 0 (2) 2 19 20 0 1 5 28 29 Mar-15 20 19 20 57.4 48.0 40.4 33.6 99 94 0.5 12.8 5.9 3.3 24.2 40 Cadila CDH IN U INR 393.7 360.0 (9) 6,040 6.8 0 (3) (5) 23 25 0 0 (2) 32 34 Mar-15 33 20 23 35.2 26.5 22.0 17.9 99 96 1.1 31.9 7.6 4.2 20.2 20

Cipla CIPLA IN O INR 642.3 750.0 17 7,731 19.3 0 (2) (1) 3 0 0 1 3 11 10 Mar-15 66 20 19 43.7 26.4 22.0 18.5 105 102 0.6 16.7 4.1 3.9 16.9 33 Dr. Reddy DRRD IN N INR 3,071 3,600 17 7,852 33.3 0 (6) (12) (5) (8) 0 (2) (9) 3 1 Mar-15 44 (0) 25 26.8 18.6 18.6 14.9 106 98 0.8 22.8 3.9 3.1 11.9 (13) Glenmark GNP IN U INR 929.2 805.0 (13) 3,930 18.8 0 (5) (3) 21 15 0 (2) 0 29 25 Mar-15 90 31 20 52.9 27.8 21.3 17.8 96 79 0.2 24.3 5.5 3.7 16.3 40

IPCA IPCA IN O INR 749.8 800.0 7 1,418 2.5 0 (3) 4 2 6 0 1 8 11 15 Mar-15 6 77 26 40.1 37.9 21.4 16.9 103 100 0.4 10.3 3.9 3.1 21.8 34 Lupin LPC IN O INR 1,803 2,150 19 12,173 34.1 0 (4) (3) 26 26 0 (0) 0 35 35 Mar-15 (14) 70 26 33.6 39.2 23.1 18.4 89 105 0.4 21.2 7.6 6.1 25.4 26 Sun Pharma SUNP IN N INR 771.0 775.0 1 27,811 53.2 0 5 2 (7) (8) 0 9 5 2 1 Mar-15 34 35 13 40.8 30.5 22.6 19.9 112 99 0.4 20.9 5.8 6.2 19.0 (35)

Taro Pharma TARO US O USD 148.4 205.0 38 6,356 15.7 0 6 6 0 2 0 7 7 (0) 2 Mar-14 36 6 15 18.0 13.2 12.5 10.8 100 100 0.0 39.9 4.5 6.3 10.1 (65) Torrent TRP IN N INR 1,459 1,450 (1) 3,701 4.4 0 (2) (6) 29 41 0 2 (2) 37 50 Mar-15 94 (22) 16 32.9 16.9 21.7 18.7 92 89 1.8 48.6 7.0 4.1 11.4 37 Sector* 8 79,822 0 0 (1) 6 6 0 4 2 15 15 Dec-14 21 27 20 32.7 27.1 21.4 19.5 101 99 0.5 22.7 5.5 4.8 17.5 (8)

Hotels, Restaurants & Leisure

Arnab Mitra - 91 22 6777 3806

Jubilant Foodworks JUBI IN O INR 1,451 1,650 14 1,429 7.4 0 (4) 2 5 8 0 (1) 5 14 18 Mar-15 3 58 45 77.2 74.6 47.2 32.5 90 98 0.0 17.3 11.9 3.8 31.7 (2)

Insurance Prashant Kumar - 91 22 6777 3942

Max India MAX IN U INR 527.8 448.0 (15) 2,112 2.1 0 (1) 0 34 36 0 3 4 42 45 Mar-14 101 (0) 33 100.5 50.1 50.2 37.8 101 85 1.6 8.3 4.1 na na na

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India—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Media Jatin Chawla - 91 22 6777 3719

Dish TV DITV IN O INR 104.6 130.0 24 1,671 13.2 0 (2) 8 55 63 0 1 11 63 72 Mar-15 nm 85 38 nm 38.7 20.9 15.1 111 125 0.0 (175.8) nm 3.7 11.2 nm Hathway Cable HATH IN N INR 43.25 40.00 (8) 538 0.3 0 4 7 (38) (40) 0 8 11 (30) (31) Mar-15 nm nm 10 nm nm 94.0 85.5 85 263 0.0 (11.9) 3.3 2.3 13.6 103 Sun TV SUNTV IN N INR 383.1 390.0 2 2,263 12.7 0 (4) 3 0 4 0 (1) 7 9 13 Mar-15 24 22 15 20.5 16.6 13.6 11.8 100 106 3.1 25.6 4.0 5.5 7.6 (34)

ZEE Z IN O INR 400.7 475.0 19 5,768 13.5 0 (3) 3 5 9 0 0 6 14 19 Mar-15 11 28 24 39.4 35.3 27.6 22.3 106 108 0.6 27.7 8.9 6.3 24.3 (31)

Sector* 14 10,240 0 (3) 4 10 14 0 1 7 18 24 Dec-14 35 43 27 46.3 34.2 24.0 18.9 105 109 1.0 24.5 7.8 5.1 14.9 (9)

Metals & Mining Neelkanth Mishra / Ravi Shankar - 91 22 6777 3716 / 91 22 6777 3869

Coal India COAL IN O INR 318.0 405.0 27 30,100 26.0 0 (6) (6) (17) (12) 0 (2) (3) (9) (3) Mar-15 5 (2) 23 14.6 14.0 14.3 11.6 95 82 6.8 35.3 4.9 2.0 9.2 (121) Hindalco HNDL IN U INR 75.90 66.00 (13) 2,349 11.7 0 (6) (5) (52) (51) 0 (2) (1) (44) (41) Mar-15 (133) nm 3 18.3 nm 32.3 31.3 nm 24 0.0 (0.7) 0.4 0.7 9.8 148

Hindustan Zinc HZ IN O INR 142.0 202.6 43 8,993 2.0 0 (2) (8) (16) (15) 0 2 (5) (7) (5) Mar-15 7 10 6 7.3 6.9 6.3 5.9 113 115 3.1 18.7 1.2 1.5 3.0 (73) JSPL JSP IN U INR 89.05 56.00 (37) 1,221 11.8 0 (6) 23 (41) (39) 0 (3) 27 (33) (29) Mar-15 nm nm nm nm nm nm nm 43 nm 0.0 (9.3) 0.4 2.8 16.5 247 JSW Steel JSTL IN U INR 961.9 540.0 (44) 3,485 12.1 0 (2) 9 (8) (13) 0 2 13 0 (4) Mar-15 (104) nm 116 12.3 nm 49.9 23.1 nm 24 0.0 (0.3) 1.0 1.3 9.4 156

NALCO NACL IN O INR 39.45 47.00 19 1,524 0.9 0 (3) 5 (26) (28) 0 1 9 (18) (19) Mar-15 (37) 32 18 8.6 13.6 10.3 8.8 86 105 3.8 5.8 0.8 0.7 5.2 (41) NMDC NMDC IN U INR 88.35 80.00 (9) 5,250 3.3 0 (6) (5) (39) (37) 0 (3) (2) (31) (28) Mar-15 (49) 3 14 5.4 10.5 10.2 8.9 88 89 5.0 11.1 1.1 2.4 4.9 (55) SAIL SAIL IN U INR 44.40 30.00 (32) 2,749 3.0 0 (7) (4) (46) (44) 0 (3) (0) (38) (35) Mar-15 (223) nm nm 8.8 nm nm nm 16 nm 0.0 (6.0) 0.4 1.3 nm 90

Tata Steel TATA IN U INR 234.8 180.0 (23) 3,417 26.7 0 (4) 6 (41) (46) 0 (0) 9 (33) (37) Mar-15 nm (121) nm nm 9.2 nm 41.4 120 nm 3.4 7.8 0.7 0.8 10.7 238 Vedanta Ltd VEDL IN O INR 87.10 145.0 66 3,870 18.1 0 (8) (7) (59) (61) 0 (4) (3) (51) (51) Mar-15 nm 113 37 nm 7.5 3.5 2.6 102 159 2.4 6.2 0.5 0.9 3.7 34 Sector* 17 62,958 0 (5) (4) (25) (23) 0 (2) (0) (17) (14) Dec-14 14 28 26 19.4 17.0 13.3 10.5 69 78 4.7 7.2 1.2 1.2 7.9 46

Real Estate Anantha Narayan - 91 22 6777 3730

DLF DLFU IN N INR 110.5 140.0 27 2,952 19.8 0 (6) (3) (19) (31) 0 (2) 1 (11) (21) Mar-15 7 1 72 35.0 32.6 32.3 18.8 70 53 1.8 2.2 0.7 5.4 11.8 75

Oberoi Realty OBER IN O INR 253.9 340.0 34 1,291 1.0 0 (2) (6) (9) (5) 0 2 (3) (1) 5 Mar-15 111 49 54 26.3 12.5 8.4 5.4 106 106 1.0 13.6 1.6 4.3 7.3 (14) Sector* 29 4,243 0 (4) (4) (16) (23) 0 (1) (0) (8) (13) Dec-14 23 30 54 29.2 23.7 18.2 11.9 88 79 1.5 3.7 0.9 5.3 11.5 62

Retailing Arnab Mitra - 91 22 6777 3806

Titan TTAN IN N INR 365.4 360.0 (1) 4,861 5.3 0 (3) 3 (4) (1) 0 0 7 4 8 Mar-15 (2) 22 18 39.4 40.1 32.8 27.9 97 95 0.7 23.9 8.9 2.6 27.7 (27)

Software & Services Anantha Narayan - 91 22 6777 3730

HCL Tech HCLT IN O INR 858.0 1,150 34 18,105 25.2 0 (0) (3) 8 10 0 3 1 16 19 Jun-15 3 17 14 15.6 15.1 12.9 11.3 101 103 2.5 28.9 4.1 2.5 11.1 (48)

Hexaware HEXW IN N INR 247.6 240.0 (3) 1,119 4.9 0 (4) (6) 24 17 0 (0) (2) 32 26 Dec-14 25 15 16 23.3 18.6 16.2 13.9 100 96 3.7 29.8 5.3 2.2 12.8 (31) InfoEdge INFOE IN N INR 855.3 800.0 (6) 1,547 1.2 0 (3) 17 1 (6) 0 1 21 9 3 Mar-15 (90) nm 127 337.9 nm 124.5 54.8 2 39 0.4 0.2 7.6 8.9 nm (84) Infosys Ltd INFO IN N INR 1,045 1,175 12 35,797 81.2 0 (1) (8) 6 6 0 2 (4) 14 16 Mar-15 8 10 13 19.4 18.0 16.3 14.5 100 97 2.4 23.1 4.0 3.4 12.2 (54)

Just Dial JUST IN O INR 864.5 1,275 47 913 10.8 0 (6) 12 (36) (40) 0 (2) 16 (28) (30) Mar-15 (17) 52 38 44.1 53.1 34.9 25.2 83 94 0.0 16.1 8.0 7.2 40.0 (126) Mindtree MTCL IN N INR 1,450 1,375 (5) 1,822 4.7 0 (2) (4) 13 23 0 2 (0) 22 32 Mar-15 12 14 18 22.7 20.3 17.9 15.2 98 94 1.9 27.3 5.1 2.6 14.3 (22) NIIT Tech NITEC IN O INR 594.4 625.0 5 545 2.4 0 4 0 60 60 0 7 4 69 69 Mar-15 41 9 18 18.6 13.3 12.2 10.3 104 101 1.9 18.7 2.3 1.2 7.1 (18)

Tata Consultancy TCS IN O INR 2,330 3,000 29 68,388 44.2 0 (2) (6) (9) (7) 0 2 (2) (0) 2 Mar-15 22 10 14 23.2 19.0 17.4 15.3 99 97 2.0 38.4 6.8 4.0 14.0 (34) Tech Mahindra TECHM IN O INR 531.5 700.0 32 7,701 18.4 0 (2) 0 (18) (19) 0 2 4 (10) (9) Mar-15 15 25 19 19.9 17.2 13.7 11.5 93 99 1.3 22.6 3.5 1.8 10.9 (21) Wipro WPRO IN O INR 568.9 675.0 19 21,060 14.6 0 (2) 2 3 2 0 2 5 11 12 Mar-15 7 13 16 16.2 15.2 13.5 11.7 100 103 2.6 21.6 3.1 2.5 11.4 (23)

Sector* 24 156,997 0 (1) (4) (2) (1) 0 2 (1) 7 8 Dec-14 12 12 14 20.7 18.5 16.5 14.4 98 99 2.2 28.1 4.9 3.3 13.2 (39)

Telecommunication Services

Sunil Tirumalai - 91 22 6777 3714

Bharti Airtel BHARTI IN U INR 317.7 270.0 (15) 19,034 22.3 0 (2) (5) (10) (10) 0 2 (2) (2) (1) Mar-15 25 (1) 24 24.5 19.7 19.9 16.1 107 93 0.9 10.0 1.9 2.2 6.3 117 Bharti Infratel BHIN IN N INR 401.9 400.0 (0) 11,423 13.4 0 0 6 19 26 0 4 9 28 35 Mar-15 15 15 21 38.1 33.2 28.9 24.0 96 92 2.0 13.2 4.3 5.8 13.1 (25)

Idea Cellular IDEA IN U INR 135.6 115.0 (15) 7,317 10.4 0 (3) 1 (12) (7) 0 0 4 (3) 2 Mar-15 (9) (51) 2 15.2 16.6 34.1 33.5 88 59 0.7 12.1 1.9 2.5 7.2 160 Reliance Comm RCOM IN U INR 78.75 50.00 (37) 2,938 13.4 0 0 2 (2) (18) 0 4 5 7 (8) Mar-15 115 (37) 20 27.5 12.8 20.4 16.9 175 99 0.4 3.9 0.5 2.3 6.5 91 Sector* (13) 40,712 0 (1) (0) (1) (0) 0 2 3 7 9 Dec-14 24 (7) 11 26.5 21.4 22.9 20.7 101 91 1.2 8.9 1.8 2.6 7.3 105

Transportation Lokesh Garg - 91 22 6777 3743

Adani Ports ADSEZ IN O INR 251.3 315.0 25 7,799 19.6 0 (4) (9) (21) (7) 0 (1) (6) (13) 3 Mar-15 17 21 (1) 22.6 19.3 15.9 16.2 102 101 0.5 21.4 3.6 10.3 14.9 96

Concor CCRI IN O INR 1,419 1,550 9 4,148 4.9 0 (1) 1 6 6 0 3 5 14 16 Mar-15 (2) 15 15 26.4 27.0 23.4 20.4 105 102 0.9 12.8 3.3 3.9 18.5 (31) Gujarat Pipavav GPPV IN O INR 155.0 205.0 32 1,123 2.3 0 (5) (5) (25) (10) 0 (1) (2) (17) (1) Mar-15 (18) 31 5 17.3 21.2 16.2 15.5 111 118 0.0 17.8 3.4 9.9 17.7 (23) IRB IRB IN O INR 242.7 295.0 22 1,278 6.4 0 (3) 1 (8) (4) 0 1 4 0 6 Mar-15 4 31 7 15.7 15.1 11.5 10.8 92 107 1.6 12.4 1.8 4.1 8.5 250

Sadbhav Engg. SADE IN O INR 326.9 380.0 16 840 0.9 0 (7) 6 25 28 0 (3) 9 33 37 Mar-15 6 54 33 48.6 45.7 29.6 22.3 77 89 0.2 8.7 3.8 2.0 18.4 37 Sector* 21 15,188 0 (3) (4) (10) (1) 0 0 (1) (2) 8 Dec-14 11 19 8 24.1 21.6 18.2 16.8 100 102 0.7 17.1 3.4 6.0 14.3 80

Utilities Anantha Narayan / Lokesh Garg - 91 22 6777 3730 / 91 22 6777 3743

JSW Energy JSW IN O INR 78.95 110.0 39 1,941 3.3 0 (9) (9) (23) (13) 0 (5) (6) (15) (4) Mar-15 (1) 12 4 9.4 9.4 8.4 8.1 109 102 2.5 17.1 1.5 3.2 7.3 183 NTPC NTPC IN O INR 130.1 160.0 23 16,072 8.3 0 (2) (3) (2) 5 0 1 1 7 14 Mar-15 4 3 12 12.3 11.8 11.4 10.3 98 94 4.5 10.8 1.3 2.6 11.2 133

PGCIL PWGR IN O INR 129.8 180.0 39 10,178 3.5 0 (4) (0) (6) (4) 0 (0) 3 2 6 Mar-15 23 18 15 13.6 11.1 9.4 8.1 99 100 1.7 15.1 1.6 8.4 9.7 246 VA Tech VATW IN O INR 684.2 900.0 32 558 1.0 0 (3) 2 (7) (10) 0 1 6 1 (1) Mar-15 23 37 23 33.7 27.5 20.1 16.3 99 99 0.7 14.1 3.7 1.3 14.5 (4) Sector* 30 28,749 0 (3) (2) (5) 0 0 0 1 4 10 Dec-14 7 10 12 12.6 11.7 10.7 9.6 97 98 4.3 12.4 1.4 3.6 10.3 163

Country Average* SENSEX 25,199 28,582 13 1,020,008 (0) (4) (4) (8) (9) Dec-14 7 18 20 20.2 18.8 15.9 13.5 95 95 1.9 13.7 2.5 1.8 10.9 40

Note: Prices are as of 9 December 2015, * Country/ sector aggregates are for the coverage above

Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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Indonesia—valuation summary Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Dvd ROE P/B EV/ EV/ Net debt/ daily con. EPS Yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

8 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Automobiles & Components

Jahanzeb Naseer - 62 21 2553 7977

Astra International ASII IJ O IDR 6,200 7,600 23 18,096 13.0 (5) (3) (6) (16) (13) (4) (1) (4) (2) 1 Dec-14 (12) 16 18 12.8 14.5 12.5 10.6 103 107 4.6 17.8 2.6 1.6 13.2 45

Banks Sanjay Jain - 65 6306 0668

BTPN BTPN IJ O IDR 2,500 3,700 48 1,042 0.0 0 (2) (12) (37) (40) 1 0 (10) (22) (27) Dec-14 2 25 24 7.9 7.8 6.2 5.0 97 107 2.6 15.0 1.1 na na na

Bank Central Asia BBCA IJ U IDR 13,025 11,500 (12) 23,153 13.3 (2) (2) (4) (1) (2) (0) 0 (2) 14 11 Dec-14 5 3 9 19.4 18.6 18.1 16.7 97 90 1.2 21.0 3.6 na na na Bank Danamon BDMN IJ U IDR 2,870 3,150 10 1,963 0.6 (8) (8) (4) (37) (35) (7) (6) (1) (22) (22) Dec-14 (12) 60 46 10.6 12.0 7.5 5.1 90 110 4.7 6.8 0.8 na na na Bank Jabar Banten BJBR IJ O IDR 710.0 800.0 13 491 0.6 (2) (3) (8) (3) (8) (1) (1) (6) 12 5 Dec-14 (4) 11 17 6.1 6.4 5.8 4.9 92 87 10.4 14.5 0.9 na na na

Bank Mandiri BMRI IJ N IDR 9,000 8,100 (10) 14,989 16.3 (1) 1 0 (16) (15) 0 3 3 (2) (1) Dec-14 (1) 5 19 10.6 10.6 10.2 8.5 100 98 2.5 18.0 1.8 na na na Bank Negara Indonesia BBNI IJ O IDR 4,995 5,100 2 6,649 11.8 (0) 1 4 (18) (16) 1 3 6 (4) (3) Dec-14 (35) 45 18 8.6 13.3 9.2 7.8 81 94 2.7 11.5 1.5 na na na Bank Rakyat BBRI IJ N IDR 10,900 10,600 (3) 19,387 21.7 (1) (3) 2 (6) (4) (0) (1) 4 8 9 Dec-14 (2) 2 13 11.1 11.3 11.1 9.8 99 94 2.7 22.4 2.4 na na na

Bank Tabungan Negara BBTN IJ N IDR 1,280 950.0 (26) 977 1.5 (2) (0) 12 6 13 (0) 2 14 21 26 Dec-14 43 24 25 12.1 8.5 6.8 5.5 99 103 2.4 12.5 1.0 na na na Sector* (6) 68,651 (1) (1) (1) (9) (8) (0) 1 2 6 5 Dec-14 (4) 10 16 12.2 12.8 11.7 10.0 97 95 2.2 17.6 2.1 na na na

Building Materials & Construction

Danny Goh / Ella Nusantoro - 60 3 2723 2083 / 62 21 255 37917

Holcim Indonesia SMCB IJ O IDR 1,020 2,300 125 564 0.1 (2) (4) (5) (53) (55) (1) (2) (3) (39) (42) Dec-13 7 0 27 9.6 9.0 8.9 7.1 131 236 5.6 9.7 0.8 1.1 5.0 36

Indocement INTP IJ N IDR 19,800 21,600 9 5,255 3.1 (2) (3) 0 (21) (21) (0) (1) 2 (6) (8) Dec-14 (12) 7 12 13.8 15.7 14.6 13.0 99 102 6.8 18.8 3.0 3.5 10.2 (32) PT PP PTPP IJ O IDR 3,750 4,800 28 1,309 2.0 1 2 1 5 19 2 4 3 19 33 Dec-14 32 42 35 34.1 25.8 18.2 13.4 102 108 1.2 26.5 6.2 1.2 12.5 68 Semen Indonesia SMGR IJ O IDR 10,975 16,000 46 4,693 4.2 (0) (0) 3 (32) (34) 1 2 5 (18) (21) Dec-14 (16) 13 15 11.7 13.9 12.3 10.7 100 104 3.4 18.8 2.5 2.4 8.4 (3)

Total Bangun TOTL IJ O IDR 630.0 1,200 90 155 0.2 (2) (1) (13) (44) (41) (0) 1 (11) (29) (28) Dec-14 21 27 22 13.1 10.8 8.5 7.0 102 107 4.6 23.2 2.3 0.7 6.2 (51) WIKA WIKA IJ O IDR 2,735 3,500 28 1,213 2.4 (1) (5) (5) (26) (12) 0 (2) (3) (11) 1 Dec-14 1 44 23 27.3 26.9 18.7 15.2 103 112 1.1 14.8 3.8 1.2 11.5 33 Waskita WSKT IJ O IDR 1,640 2,200 34 1,605 3.5 (1) (2) (4) 14 52 1 (0) (1) 29 65 Dec-14 41 42 40 44.4 31.6 22.3 15.9 90 96 1.1 11.9 2.5 1.5 16.7 (19)

Wika Beton WTON IJ O IDR 835.0 1,270 52 525 1.3 (4) (8) (14) (36) (30) (3) (6) (12) (21) (17) Dec-14 (39) 54 40 22.2 36.4 23.6 16.9 78 90 0.8 8.9 3.2 2.6 17.9 (0) Sector* 33 15,318 (1) (2) (1) (21) (15) 0 0 2 (6) (2) Dec-14 (9) 17 20 15.3 16.8 14.3 12.0 103 107 4.0 16.9 2.7 1.9 9.7 (3)

Consumer Staples Ella Nusantoro / Priscilla Tjitra - 62 21 255 37917 / 62 21 2553 7906

Astra Agro AALI IJ O IDR 17,450 21,000 20 1,981 1.9 (3) (3) (13) (28) (27) (2) (0) (11) (13) (14) Dec-14 (60) 88 12 11.0 27.3 14.5 13.0 75 97 3.7 8.8 2.4 2.4 19.3 50 BW Plantation BWPT IJ R IDR 123.0 280 2.1 (9) (12) (46) (69) (70) (8) (9) (44) (55) (57) Dec-14 (86) 198 102 2.9 20.3 6.8 3.4 nm 190 0.7 2.5 0.5 3.4 11.3 88

Bumitama BAL SP O SGD 0.75 0.94 25 939 0.3 1 0 (9) (28) (29) 3 2 (6) (14) (16) Dec-14 (20) 18 63 11.3 14.2 12.0 7.4 91 90 2.2 13.6 1.8 2.8 9.5 46 DSN DSNG IJ N IDR 620.0 660.0 6 474 0.2 0 2 3 (19) (20) 1 5 6 (5) (7) Dec-14 (35) 26 61 10.1 15.5 12.3 7.6 109 112 2.1 17.0 2.5 1.8 8.3 90 First Resources FR SP O SGD 1.99 2.00 1 2,246 2.7 (4) 1 1 6 9 (3) 3 3 21 23 Dec-14 (20) 5 34 13.1 16.4 15.6 11.7 102 92 2.8 12.8 2.0 4.8 10.2 22

Gudang Garam GGRM IJ O IDR 51,200 61,500 20 7,103 3.2 1 0 6 (16) (14) 2 2 9 (1) (1) Dec-14 3 9 17 18.4 17.8 16.3 14.0 102 103 2.1 15.9 2.7 1.7 10.9 57 Indofood Agri IFAR SP N SGD 0.50 0.49 (2) 511 0.3 (1) (4) (12) (32) (31) 0 (2) (10) (17) (18) Dec-14 (38) 8 37 7.7 12.4 11.5 8.5 83 79 1.0 3.8 0.5 0.9 4.3 21 Indofood CBP ICBP IJ O IDR 12,175 15,100 24 5,118 1.7 (2) (6) (6) (7) 5 (1) (4) (4) 8 18 Dec-14 27 22 16 27.3 21.5 17.7 15.3 106 115 1.8 21.9 4.4 1.9 13.0 (27)

Indofood Sukses INDF IJ O IDR 5,075 10,600 109 3,213 3.3 (1) (3) (13) (25) (23) 0 (1) (11) (10) (10) Dec-14 3 9 10 11.5 11.1 10.2 9.2 121 108 4.4 15.1 1.6 0.7 5.0 6 London Sumatra LSIP IJ O IDR 1,360 1,850 36 669 1.9 (4) 9 (6) (28) (31) (2) 11 (3) (13) (18) Dec-14 (31) 8 24 10.1 14.6 13.6 10.9 95 86 4.0 8.6 1.2 2.0 7.5 (10) Salim Ivomas SIMP IJ U IDR 367.0 400.0 9 418 0.1 (2) (3) (16) (48) (51) (1) (1) (13) (33) (38) Dec-14 (50) 16 74 6.9 13.9 11.9 6.9 105 77 4.2 2.9 0.4 1.0 5.0 45

Sampoerna Agro SGRO IJ N IDR 1,440 1,440 0 196 0.2 (3) (0) 5 (31) (36) (2) 2 7 (17) (22) Dec-14 (24) (16) 133 8.0 10.6 12.6 5.4 119 89 3.1 8.4 0.9 1.4 6.7 48 Unilever Indon UNVR IJ U IDR 35,100 34,600 (1) 19,309 4.4 (2) (6) (5) 9 13 (1) (4) (3) 23 26 Dec-14 5 14 12 46.5 44.3 38.9 34.6 100 104 2.1 123.2 53.4 7.2 32.3 20 Sector* 16 42,456 (1) (4) (4) (5) (1) (0) (2) (2) 9 12 Dec-14 (11) 17 23 20.8 23.4 20.0 16.3 103 103 2.4 15.4 3.5 2.3 12.9 28

Energy Ami Tantri - 62 21 2553 7976

AKR Corporindo AKRA IJ N IDR 7,150 5,900 (17) 2,036 3.7 6 15 19 74 58 7 17 21 88 71 Dec-13 19 43 11 42.2 35.4 24.9 22.3 97 103 0.9 15.3 5.2 1.3 23.6 91

Healthcare Anand Swaminathan / Ella Nusantoro - 65 6212 3012 / 62 21 255 37917

Kalbe Farma KLBF IJ U IDR 1,245 1,350 8 4,208 4.4 (3) (10) (11) (32) (28) (1) (8) (9) (17) (15) Dec-14 8 16 16 28.2 26.2 22.6 19.4 107 111 1.5 22.1 5.4 3.0 17.2 (23) Mitra Keluarga MIKA IJ N IDR 2,305 2,500 8 2,418 4.4 1 (2) (11) na na 3 0 (9) na na Dec-14 9 17 24 61.6 56.7 48.7 39.4 101 99 0.4 23.0 9.9 14.4 40.1 (69) Siloam Hospitals SILO IJ O IDR 9,675 13,000 34 806 3.6 2 0 (5) (29) (31) 3 2 (2) (15) (18) Dec-14 57 58 72 178.8 113.6 72.0 41.8 101 111 0.1 5.8 6.5 2.6 20.1 (3)

Sector* 11 7,432 (1) (7) (11) (32) (28) 0 (4) (8) (17) (15) Dec-14 9 18 20 38.5 35.4 30.1 25.0 106 108 1.0 20.3 6.5 4.0 21.5 (31)

Media Jahanzeb Naseer - 62 21 2553 7977

MNCN MNCN IJ O IDR 1,775 2,165 22 1,827 1.0 (4) 0 1 (30) (21) (3) 2 3 (16) (8) Dec-14 (22) 20 27 14.2 18.3 15.2 12.0 86 87 3.3 14.1 2.5 3.8 9.1 1 SCMA SCMA IJ N IDR 3,035 3,300 9 3,199 1.4 (2) 0 (5) (13) (6) (1) 2 (3) 1 7 Dec-14 4 14 20 30.5 29.4 25.7 21.5 98 98 1.7 40.9 11.3 8.5 21.0 (30) Sector* 14 5,026 (3) 0 (3) (19) (12) (1) 2 (1) (5) 2 Dec-14 (11) 17 23 21.5 24.1 20.6 16.7 92 92 2.3 21.5 5.0 5.9 14.1 (7)

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Indonesia—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Dvd ROE P/B EV/ EV/ Net debt/ daily con. EPS Yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

8 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Metals & Mining Ami Tantri / Paworamon (Poom) Suvarnatemee - 62 21 2553 7976 / 66 2 614 6210

Delta Dunia Makmur DOID IJ N IDR 57.00 125.0 119 34 0.1 (3) (10) (16) (70) (73) (2) (7) (14) (56) (60) Dec-14 64 17 31 2.2 1.3 1.1 0.9 76 121 0.0 24.2 0.3 1.0 3.3 480 Harum Energy HRUM IJ N IDR 695.0 1,200 73 135 0.0 (2) (1) (16) (58) (59) (1) 1 (14) (44) (46) Dec-14 278 (84) 829 329.4 87.1 539.1 58.0 58 3 0.3 0.5 0.5 (0.2) (5.0) (58) ITM ITMG IJ N IDR 6,375 8,800 38 519 0.9 (3) (2) (26) (59) (65) (2) 1 (24) (44) (51) Dec-14 (44) 0 7 2.6 4.7 4.6 4.3 91 114 17.7 12.8 0.6 0.2 1.4 (21)

Medco Energy MEDC IJ O IDR 845.0 4,400 421 203 0.1 (10) (18) (25) (78) (77) (8) (16) (23) (63) (64) Dec-14 176 102 10 20.1 7.3 3.6 3.3 nm 242 3.8 3.0 0.2 1.4 3.0 92 PT INCO INCO IJ N IDR 1,530 2,750 80 1,096 1.6 (2) (6) (31) (58) (62) (1) (4) (29) (43) (48) Dec-14 (23) 74 20 6.4 8.3 4.8 4.0 111 165 0.0 7.2 0.6 1.0 3.0 (8) Timah TINS IJ O IDR 505.0 1,200 138 271 0.3 (3) (5) (17) (59) (58) (2) (3) (15) (44) (45) Dec-14 (22) 43 6 5.6 7.1 5.0 4.7 215 198 8.5 9.2 0.6 0.7 4.3 36

Sector* 108 2,800 (3) (5) (24) (61) (63) (2) (3) (22) (46) (50) Dec-14 29 118 53 9.5 7.4 3.4 2.2 128 240 4.4 6.9 0.4 0.8 3.4 28

Real Estate Jahanzeb Naseer - 62 21 2553 7977

Alam Sutera ASRI IJ N IDR 336.0 450.0 34 476 2.7 (3) (7) (13) (40) (42) (1) (5) (10) (25) (28) Dec-14 2 8 10 6.0 5.9 5.5 5.0 94 86 2.2 16.8 0.9 3.5 6.5 88 Ciputra Development CTRA IJ O IDR 1,285 1,310 2 1,420 1.0 2 7 1 4 (0) 4 9 3 19 13 Dec-14 1 15 17 14.7 14.6 12.7 10.8 102 103 2.0 17.0 2.3 3.2 9.3 16 Summarecon SMRA IJ O IDR 1,580 1,960 24 1,643 3.0 (2) 1 10 4 6 (1) 3 12 19 19 Dec-14 (8) 18 21 16.5 17.8 15.0 12.5 105 109 1.5 21.5 3.6 4.7 12.7 56

Sector* 17 3,540 (0) 3 3 (2) (3) 1 5 6 13 10 Dec-14 (2) 14 16 12.8 13.1 11.5 9.9 101 99 1.8 18.2 2.2 3.8 9.5 46

Retailing Priscilla Tjitra - 62 21 2553 7906

Ace ACES IJ N IDR 785.0 600.0 (24) 971 0.4 (2) (2) 16 0 3 (1) 0 19 15 17 Dec-14 2 9 11 24.3 23.7 21.7 19.5 102 101 1.6 22.1 4.9 2.6 17.0 (19) Erajaya ERAA IJ O IDR 497.0 825.0 66 104 0.6 (6) (14) (19) (54) (59) (5) (12) (16) (40) (46) Dec-14 11 10 16 6.8 6.1 5.5 4.8 101 104 5.9 7.8 0.5 0.2 5.2 44 Matahari LPPF IJ O IDR 16,325 19,700 21 3,434 4.5 (5) (1) 4 9 4 (4) 1 6 23 18 Dec-14 25 24 20 33.6 26.8 21.6 18.0 96 100 1.5 41.5 9.9 5.1 18.2 (88)

Matahari Putra Prima MPPA IJ O IDR 1,750 2,600 49 679 1.0 (5) (9) (22) (43) (49) (3) (7) (19) (28) (36) Dec-14 (2) 17 21 17.0 17.4 14.9 12.4 110 110 1.8 17.8 2.9 0.6 9.2 (18) Mitra Adiperkasa MAPI IJ O IDR 4,320 4,500 4 517 0.4 0 2 22 (15) (20) 1 4 25 (0) (7) Dec-14 (46) 425 48 95.7 178.5 34.0 23.0 30 75 0.0 1.6 2.8 0.8 9.9 103 Ramayana RALS IJ N IDR 675.0 650.0 (4) 345 0.2 2 (2) (5) (15) (9) 3 (0) (3) 0 4 Dec-14 (9) (4) 7 13.5 14.8 15.5 14.4 106 96 4.0 9.4 1.4 0.5 4.0 (56)

Tiphone TELE IJ O IDR 730.0 1,250 71 375 0.2 1 4 1 (22) (18) 3 6 3 (7) (5) Dec-14 25 22 26 16.9 13.5 11.1 8.8 100 99 1.4 14.7 1.9 0.4 9.4 64 Sector* 18 6,425 (3) (2) 3 (4) (7) (2) 0 6 11 7 Dec-14 11 21 20 25.6 23.0 18.9 15.8 98 100 1.6 18.0 3.9 1.1 12.5 9

Telecommunication Services

Colin McCallum - 852 2101 6514

Indosat ISAT IJ N IDR 5,200 5,800 12 2,037 0.2 (5) (7) 20 28 26 (4) (5) 22 43 39 Dec-14 nm 442 12 nm 103.6 19.1 17.1 170 117 0.3 2.0 2.1 1.8 4.1 129

Link Net LINK IJ O IDR 3,305 8,450 156 725 0.6 (3) (7) (18) (33) (36) (1) (5) (16) (18) (23) Dec-14 17 48 36 18.0 15.4 10.4 7.7 101 118 0.0 19.4 2.7 3.8 6.8 (1) Protelindo TOWR IJ U IDR 4,300 3,525 (18) 3,163 0.1 0 2 1 4 5 1 4 3 18 18 Dec-14 65 25 8 52.1 31.7 25.4 23.5 97 102 1.3 27.2 8.0 11.0 13.3 176 Telkom TLKM IJ O IDR 3,015 3,350 11 21,911 14.4 (0) 3 10 5 7 1 5 12 20 21 Dec-14 15 12 7 20.1 17.6 15.6 14.6 104 104 3.3 24.2 4.0 3.1 6.1 1

Tower Bersama TBIG IJ U IDR 5,925 5,300 (11) 2,049 1.6 (2) (8) (14) (39) (38) (1) (6) (11) (24) (25) Dec-14 40 36 21 21.8 15.5 11.4 9.4 136 157 1.9 39.6 5.4 10.5 12.7 281 XL Axiata EXCL IJ O IDR 4,005 5,150 29 2,464 0.7 10 12 27 (18) (18) 11 14 29 (3) (5) Dec-14 nm nm 26 nm 242.4 18.6 14.7 81 215 0.2 1.0 2.4 2.5 6.6 174 Sector* 11 32,350 (0) 2 9 1 3 1 4 11 16 16 Dec-14 45 29 11 30.1 20.8 16.1 14.4 106 112 2.5 19.3 3.8 3.2 6.5 50

Transportation Timothy Ross / Ella Nusantoro / Jahanzeb Naseer - 65 6212 3337 / 62 21 255 37917 / 62 21 2553 7977

Blue Bird BIRD IJ N IDR 6,825 6,200 (9) 1,231 0.1 4 (0) 5 (28) (12) 5 2 7 (13) 2 Dec-14 13 23 17 23.2 20.5 16.7 14.2 93 91 2.2 22.1 4.3 3.1 9.9 2

Garuda GIAA IJ O IDR 316.0 370.0 17 589 0.4 4 4 (1) (43) (47) 5 6 1 (28) (34) Dec-14 nm 452 (2) nm 27.1 4.9 5.0 28 116 0.0 2.3 0.6 2.0 27.2 50 Jasa JSMR IJ O IDR 4,755 8,800 85 2,331 2.5 (2) (0) (6) (33) (31) (0) 2 (4) (18) (18) Dec-14 8 21 15 23.0 21.4 17.7 15.4 100 103 1.9 14.6 3.0 4.6 11.0 112 Sector* 47 4,152 1 0 (2) (33) (27) 2 2 0 (18) (14) Dec-14 na 71 14 nm 21.9 12.8 11.3 77 104 1.7 9.9 2.0 2.5 17.6 69

Utilities Ariyanto Jahja - 62 21 6227976

Perusahaan Gas PGAS IJ O IDR 2,615 3,500 34 4,570 7.1 (7) (4) (11) (56) (56) (5) (2) (8) (42) (43) Dec-14 (43) 21 8 6.4 11.3 9.3 8.6 83 96 5.9 14.0 1.5 2.0 7.4 39

Country Average* JCI 4,464 4,976 11 212,853 (1) (2) (2) (15) (13) Dec-14 (0) 19 19 16.5 16.5 13.8 11.6 100 104 2.7 16.5 2.6 2.2 9.9 32

Note: Prices are as of 8 December 2015

* Country/ sector aggregates are for the coverage above

Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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Japan—valuation summary Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Automobiles & Components Masahiro Akita / Koji Takahashi / Shinya Yamada - 81 3 4550 7361 / 81 3 4550 7884 / 81 3 4550 9910

Aisan Industry 7283 JP O JPY 1,266 1,400 11 646 1.5 (0) (4) 1 22 28 1 (1) 3 12 19 Mar-15 11 12 12 11.3 10.2 9.1 8.1 102 103 2.5 8.6 0.9 0.4 3.7 4 Aisin Seiki 7259 JP O JPY 5,080 6,000 18 11,703 45.9 1 1 1 17 12 2 4 3 6 4 Mar-15 27 16 12 18.5 14.6 12.6 11.2 105 105 2.1 8.2 1.2 0.5 4.2 9 Bridgestone 5108 JT N JPY 4,333 4,850 12 27,645 107.8 (0) (2) (5) 3 (1) 1 1 (3) (7) (9) Dec-14 6 5 6 11.3 10.7 10.1 9.6 101 96 2.9 14.6 1.5 0.9 4.8 6

Calsonic Kansei 7248 JP N JPY 1,071 1,050 (2) 2,339 10.9 (1) (1) 3 58 54 0 2 5 48 45 Mar-15 24 12 11 14.3 11.5 10.2 9.3 98 101 0.9 11.9 1.3 0.3 4.3 (4) Daihatsu Motor 7262 JP U JPY 1,654 1,250 (24) 5,746 27.4 (0) 2 9 5 (2) 0 5 11 (6) (10) Mar-15 (27) 6 8 10.3 14.1 13.3 12.4 105 102 2.2 8.2 1.2 0.5 5.2 15 DaikyoNishikawa 4246 JP O JPY 8,460 9,200 9 1,248 2.9 (2) (6) 27 136 143 (1) (3) 29 125 135 Mar-15 64 16 11 22.1 13.4 11.6 10.5 105 103 1.0 24.2 2.9 0.9 5.8 (8)

Denso 6902 JP N JPY 5,765 6,050 5 37,259 90.6 (1) (4) (2) 2 (2) (0) (1) 1 (9) (11) Mar-15 3 14 9 17.8 17.2 15.1 13.9 98 98 2.1 8.1 1.4 1.0 7.3 (7) Exedy 7278 JP N JPY 2,934 3,000 2 1,149 3.0 (1) (1) 0 1 (5) 0 2 2 (10) (14) Mar-15 22 9 13 14.8 12.1 11.2 9.9 105 103 2.6 7.1 0.8 0.5 3.8 2 Fuji Heavy Industries 7270 JP O JPY 5,029 5,800 15 31,993 138.6 (0) (3) 0 17 13 1 (0) 3 6 4 Mar-15 37 7 8 15.0 10.9 10.2 9.5 95 96 2.7 31.3 3.1 1.2 5.9 (6)

Hino Motors 7205 JP N JPY 1,468 1,500 2 6,860 28.2 (1) (4) (0) (8) (11) 0 (1) 2 (19) (19) Mar-15 2 13 15 11.3 11.1 9.8 8.5 99 99 2.7 17.2 1.8 0.5 5.9 20 Honda Motor 7267 JP N JPY 3,980 4,100 3 58,475 146.3 (0) (3) (2) 13 7 0 0 0 2 (1) Mar-15 8 12 12 14.1 13.0 11.6 10.4 95 93 2.4 7.5 1.0 0.9 10.8 80 Ichikoh Industries 7244 JP O JPY 275.0 500.0 82 215 0.7 1 10 29 7 9 2 13 31 (4) 0 Mar-15 10 23 28 11.2 10.1 8.2 6.4 100 100 1.6 10.8 1.0 0.4 5.8 52

Isuzu Motors 7202 JP N JPY 1,354 1,450 7 9,196 41.4 0 (3) (9) (9) (12) 1 (0) (7) (19) (21) Mar-15 3 9 9 9.7 9.4 8.6 7.9 100 100 2.4 15.1 1.3 0.5 4.0 (17) Keihin 7251 JP N JPY 1,993 1,800 (10) 1,202 5.7 (0) (4) 0 11 11 1 (1) 3 1 2 Mar-15 17 11 10 13.3 11.4 10.3 9.3 100 97 1.8 7.4 0.8 0.4 3.0 (8) Koito Manufacturing 7276 JP U JPY 4,970 3,500 (30) 6,511 22.4 (0) (2) 3 34 29 1 1 6 24 21 Mar-15 14 8 7 22.1 19.5 18.1 16.9 100 88 1.0 14.4 2.6 0.9 6.8 (30)

Mazda Motor 7261 JP O JPY 2,589 2,800 8 38,345 141.4 0 (2) 2 (12) (16) 1 1 5 (22) (25) Mar-15 0 13 9 9.7 9.7 8.6 7.9 100 99 1.2 16.9 1.5 1.5 16.1 19 Mitsubishi Motors 7211 JP O JPY 1,095 1,300 19 8,779 41.8 0 (2) (0) (1) (11) 1 1 2 (12) (19) Mar-15 (13) 13 12 9.1 10.5 9.3 8.3 103 103 1.5 14.7 1.4 0.3 3.9 (43) Musashi Seimitsu Industry 7220 JP N JPY 2,532 2,550 1 644 2.2 1 (5) (4) 10 8 2 (2) (1) (0) (1) Mar-15 2 18 4 12.4 12.2 10.3 9.9 90 94 2.0 8.7 1.0 0.7 4.7 44

Nifco 7988 JP O JPY 5,300 6,400 21 2,322 11.8 0 1 5 35 33 1 4 8 25 24 Mar-15 40 11 12 21.7 15.6 14.0 12.5 106 106 1.9 13.7 2.1 1.2 7.9 21 Nissan Motor 7201 JP O JPY 1,261 1,450 15 43,077 125.9 0 (2) (2) 19 12 1 1 0 9 3 Mar-15 21 12 13 11.5 9.6 8.5 7.6 99 99 3.3 11.0 1.0 0.9 10.2 121 Shimano 7309 JP N JPY 18,000 17,000 (6) 13,605 47.8 (1) (1) (5) 15 7 (0) 2 (3) 4 (2) Dec-14 54 (21) 7 32.6 21.1 26.7 24.9 106 90 0.9 24.5 4.7 3.9 14.8 (60)

Stanley Electric 6923 JP N JPY 2,622 2,700 3 3,569 17.1 (1) (3) 5 0 (2) 0 (1) 7 (10) (11) Mar-15 26 11 11 17.5 13.9 12.5 11.3 112 106 1.4 10.1 1.4 0.9 5.4 (15) Sumitomo Rubber Industries 5110 JP N JPY 1,667 1,950 17 3,565 23.6 1 (0) (4) (7) (11) 2 3 (2) (18) (20) Dec-14 1 6 5 8.2 8.1 7.7 7.3 94 104 3.2 12.6 1.0 0.8 5.0 50 Suzuki Motor 7269 JP N JPY 3,719 3,950 6 13,376 66.1 (0) (4) (6) 2 (5) 1 (1) (4) (8) (14) Mar-15 19 9 13 21.5 18.1 16.7 14.8 76 83 0.9 7.5 1.3 0.4 3.1 (28)

Takata Corporation 7312 JP N JPY 850.0 1,450 71 576 8.4 (2) (11) 2 (42) (35) (1) (8) 5 (52) (43) Mar-15 nm 50 7 nm 3.5 2.4 2.2 96 117 0.0 12.3 0.4 0.1 1.1 1 Tokai Rika 6995 JP N JPY 2,939 3,150 7 2,184 8.9 1 4 11 15 14 2 6 13 5 5 Mar-15 (59) 225 12 13.5 33.3 10.3 9.2 121 103 2.2 3.5 1.2 0.5 4.3 (8) Topre 5975 JP O JPY 2,790 3,300 18 1,229 2.7 1 (0) 5 61 66 2 3 7 50 58 Mar-15 13 18 11 13.5 11.9 10.1 9.1 112 118 1.1 11.1 1.3 1.0 5.5 (13)

Toyoda Gosei 7282 JP N JPY 2,882 2,700 (6) 3,041 7.4 1 (3) (3) 18 14 1 0 (1) 8 6 Mar-15 18 8 11 17.6 14.9 13.8 12.4 99 98 2.0 7.8 1.1 0.5 4.2 (4) Toyota Boshoku 3116 JP O JPY 2,546 3,200 26 3,847 11.9 (0) (5) (7) 58 67 1 (2) (4) 47 59 Mar-15 553 6 11 90.7 13.9 13.1 11.8 116 112 1.4 14.8 1.9 0.3 5.1 5 Toyota Industries 6201 JP O JPY 6,490 8,500 31 16,621 29.8 (0) (2) (4) 5 4 1 1 (2) (6) (4) Mar-15 70 (23) 8 17.7 10.4 13.5 12.5 124 104 2.0 8.0 0.8 1.1 9.0 16

Toyota Motor 7203 JP O JPY 7,654 10,000 31 192,785 567.1 1 (2) 0 1 (1) 2 1 3 (9) (10) Mar-15 15 8 9 11.1 9.7 8.9 8.2 103 104 3.1 14.3 1.3 1.0 7.5 35 Unipres 5949 JP N JPY 2,947 3,300 12 1,081 4.7 (1) (3) 1 49 36 (1) 0 3 38 28 Mar-15 46 26 13 17.4 11.9 9.4 8.4 105 109 1.2 8.9 1.0 0.5 3.6 16 Yamaha Motor 7272 JP N JPY 2,889 2,950 2 8,225 50.1 (2) (3) (2) 18 15 (1) (0) 1 8 6 Dec-14 29 6 12 14.7 11.5 10.8 9.7 129 95 1.7 17.7 1.9 0.7 6.7 28

Sector* 17 559,057 0 (2) (1) 7 3 1 1 1 (3) (5) Mar-15 16 9 10 12.9 11.1 10.2 9.2 101 100 2.5 12.1 1.3 0.9 7.5 35

Banks Takashi Miura - 81 3 4550 9941

Aozora Bank 8304 JP N JPY 431.0 500.0 16 4,098 34.9 (0) (1) (3) 15 13 1 2 (1) 5 5 Mar-15 (11) 2 4 11.9 13.3 13.0 12.5 88 91 3.9 9.4 1.2 na na na Bank of Kyoto 8369 JP N JPY 1,101 1,340 22 3,403 12.1 0 (4) (12) 9 3 1 (1) (10) (2) (5) Mar-15 (5) (6) 4 21.1 22.2 23.6 22.8 85 85 1.1 2.6 0.6 na na na Bank of Yokohama 8332 JP N JPY 710.5 880.0 24 7,052 29.0 (0) (4) (6) 8 2 1 (1) (4) (2) (7) Mar-15 (6) 11 6 11.7 12.5 11.3 10.6 95 101 2.0 6.9 0.9 na na na

Chiba Bank 8331 JP N JPY 832.0 880.0 6 5,572 20.8 0 (2) (5) 5 2 1 1 (3) (6) (6) Mar-15 (10) 4 4 12.6 14.0 13.5 12.9 90 89 1.7 5.5 0.8 na na na Fukuoka Financial Group 8354 JP U JPY 586.0 480.0 (18) 4,104 19.0 1 (2) (9) (6) (13) 2 1 (7) (17) (21) Mar-15 (0) 3 0 13.9 13.9 13.5 13.5 88 91 2.2 4.8 0.7 na na na Mitsubishi UFJ Financial Group 8306 JP O JPY 786.4 1,140 45 88,547 451.8 (1) (3) (4) 18 13 (0) 0 (2) 8 4 Mar-15 9 7 1 10.7 9.9 9.2 9.1 102 102 2.5 7.0 0.7 na na na

Mizuho Financial Group 8411 JP N JPY 243.4 290.0 19 49,326 394.7 (1) (3) (5) 20 17 0 (0) (3) 10 8 Mar-15 (7) (3) 3 9.6 10.4 10.7 10.3 90 87 3.1 9.4 0.9 na na na Resona Holdings 8308 JP N JPY 603.2 720.0 19 11,424 55.6 (0) (1) (9) (1) (5) 0 2 (6) (12) (13) Mar-15 (29) (13) 5 6.6 9.3 10.8 10.3 85 74 2.8 9.4 0.8 na na na Shinsei Bank 8303 JP O JPY 222.0 330.0 49 4,803 39.5 (2) (5) (10) 5 3 (1) (2) (8) (5) (6) Mar-15 14 (4) 5 7.7 6.8 7.0 6.7 123 123 1.4 10.4 0.7 na na na

Shizuoka Bank 8355 JP U JPY 1,178 900.0 (24) 5,895 18.5 0 (3) (5) 6 3 1 (0) (3) (4) (5) Mar-15 (18) 7 1 14.6 17.8 16.7 16.4 81 84 1.7 4.3 0.8 na na na Sumitomo Mitsui Financial Group 8316 JP O JPY 4,705 6,600 40 52,441 323.1 0 (2) (8) 8 5 1 1 (6) (3) (4) Mar-15 6 (2) 4 8.5 8.0 8.2 7.9 102 98 3.2 8.6 0.7 na na na Sumitomo Mitsui Trust Holdings 8309 JP N JPY 464.5 590.0 27 14,561 76.7 0 (2) (7) 0 (6) 1 1 (5) (10) (14) Mar-15 8 5 2 11.3 10.5 10.0 9.8 97 96 2.8 6.8 0.7 na na na

Suruga Bank 8358 JP N JPY 2,446 2,500 2 5,147 15.4 1 (2) 2 10 9 1 1 4 (0) 1 Mar-15 18 6 9 17.6 14.9 14.1 12.9 105 103 0.9 12.7 1.8 na na na Sector* 31 256,372 (0) (3) (6) 13 8 0 0 (4) 2 0 Mar-15 1 1 3 10.0 9.9 9.7 9.5 98 96 2.7 7.7 0.7 na na na

Building Materials & Construction

Jun Yamaguchi / Shinya Yamada - 81 3 4550 9789 / 81 3 4550 9910

Asahi Glass 5201 JP N JPY 706.0 760.0 8 6,653 34.9 (2) (3) (3) 20 17 (1) (1) (1) 9 8 Dec-14 182 (22) 11 51.3 18.2 23.4 21.1 102 85 2.5 4.1 0.8 0.9 5.8 36

Fujikura 5803 JP N JPY 692.0 660.0 (5) 1,722 11.9 (2) (3) 8 38 50 (1) 0 10 28 42 Mar-15 31 13 11 17.5 13.4 11.9 10.7 104 106 1.2 6.9 0.9 0.5 5.7 60 Furukawa Electric 5801 JP U JPY 276.0 180.0 (35) 1,589 15.0 1 3 11 37 37 2 6 14 27 28 Mar-15 10 48 21 26.5 24.1 16.2 13.4 80 92 1.4 4.1 1.0 0.5 9.6 115 NGK Insulators 5333 JP N JPY 2,759 2,680 (3) 7,344 34.9 (2) (4) (3) 11 8 (1) (1) (1) 0 (1) Mar-15 34 (3) 8 21.7 16.2 16.7 15.5 104 99 1.4 13.4 2.0 2.0 8.5 (1)

NSG Group 5202 JP O JPY 101.0 125.0 24 744 14.5 0 (3) (7) (11) (13) 1 0 (5) (22) (21) Mar-15 (382) nm 141 54.7 nm 28.5 11.8 27 80 0.0 (2.6) 0.5 0.7 7.7 192 Nippon Carbon 5302 JP N JPY 322.0 340.0 6 291 4.8 (4) (7) (6) 41 39 (4) (5) (3) 30 31 Dec-14 80 13 47 45.6 25.4 22.4 15.2 103 108 1.6 4.5 1.1 1.2 7.6 0 Nippon Electric Glass 5214 JP O JPY 653.0 830.0 27 2,648 21.4 (1) (2) (2) 20 19 (0) 1 (0) 9 11 Dec-14 25 149 8 54.7 43.9 17.7 16.3 89 134 2.5 1.5 0.6 1.2 5.3 (2)

Sumitomo Electric Industries 5802 JP O JPY 1,689 2,000 18 10,921 44.5 (2) (4) (0) 12 5 (1) (1) 2 1 (4) Mar-15 (11) 29 11 11.2 12.5 9.7 8.8 110 119 2.1 7.3 0.9 0.5 5.6 20 Sumitomo Osaka Cement 5232 JP O JPY 438.0 610.0 39 1,454 13.1 (1) (4) (14) 27 21 (0) (1) (12) 16 13 Mar-15 18 12 4 13.7 11.6 10.4 10.0 101 105 1.7 8.6 1.0 1.0 5.5 27 Taiheiyo Cement 5233 JP O JPY 361.0 550.0 52 3,615 31.7 (1) (2) (9) (5) (6) 0 0 (7) (15) (14) Mar-15 (7) 16 2 10.1 10.8 9.4 9.1 107 110 1.9 12.6 1.3 0.9 7.0 83

Tokai Carbon 5301 JP O JPY 347.0 360.0 4 604 3.4 (4) (8) (4) (2) (6) (3) (5) (1) (13) (15) Dec-14 (30) 78 41 28.9 41.1 23.1 16.4 93 103 1.7 1.4 0.6 0.8 6.9 9 Toyo Tanso 5310 JP U JPY 1,808 1,580 (13) 306 1.1 (0) (1) 1 (9) (9) 1 2 3 (19) (17) Dec-14 (27) 62 17 28.2 38.6 23.9 20.4 116 101 1.4 1.6 0.6 0.9 6.9 (9) Sector* 13 37,890 (1) (3) (2) 14 11 (1) (0) 0 4 3 Mar-15 8 19 10 17.0 15.7 13.2 10.5 103 108 1.9 6.1 0.9 0.8 6.4 36

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Japan—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily

con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Capital Goods Hideyuki Maekawa / Jun Yamaguchi / Masahiro Mochizuki / Shinji Kuroda - 81 3 4550 9723 / 81 3 4550 9789 / 81 3 4550 7389 / 81 3 4550 9994

Amada 6113 JP N JPY 1,220 1,350 11 3,631 20.9 (1) (1) 8 18 12 0 2 10 7 4 Mar-15 30 13 (5) 24.8 19.1 16.9 17.7 94 105 2.6 5.4 1.0 1.2 8.4 (20) Anritsu 6754 JP O JPY 818.0 1,000 22 915 6.4 (0) (1) 4 (3) (10) 1 2 6 (13) (18) Mar-15 10 7 9 14.7 13.4 12.5 11.5 112 108 2.9 10.3 1.3 0.9 6.2 (20) Chiyoda Corporation 6366 JP U JPY 963.0 900.0 (7) 2,034 21.0 (3) (7) 5 (4) (4) (2) (5) 7 (15) (12) Mar-15 9 0 4 22.6 20.8 20.8 20.0 86 63 1.5 5.7 1.2 0.4 10.3 (11)

DMG Mori Seiki 6141 JP N JPY 1,640 1,800 10 1,605 28.3 1 (3) (12) 9 3 1 (0) (10) (2) (6) Dec-14 100 (4) (30) 14.0 7.0 7.3 10.5 97 125 1.5 18.3 1.3 1.3 9.4 87 Daikin Industries 6367 JP O JPY 8,741 9,600 10 20,791 97.6 0 (1) 4 12 8 1 2 7 1 (0) Mar-15 10 13 11 21.3 19.3 17.1 15.5 98 100 1.3 12.2 2.2 1.4 9.5 24 Ebara 6361 JP N JPY 591.0 500.0 (15) 2,240 18.8 (0) (4) 11 19 16 1 (1) 13 8 8 Mar-15 (21) (9) 3 11.6 14.8 16.3 15.9 82 74 2.0 8.2 1.3 0.6 6.6 10

Fanuc 6954 JP N JPY 21,680 24,000 11 34,575 216.5 (1) (3) (2) 9 4 (0) (0) 1 (2) (4) Mar-15 (18) 19 (28) 20.4 24.9 20.9 29.1 105 122 2.4 12.3 3.1 5.0 12.6 (70) GS Yuasa 6674 JP N JPY 460.0 460.0 0 1,548 13.5 (0) (3) 1 (11) (12) 1 0 3 (21) (20) Mar-15 12 29 8 18.9 17.0 13.1 12.2 85 96 2.2 6.9 1.2 0.7 6.6 28 HASEKO Corporation 1808 JP O JPY 1,346 1,800 34 3,299 46.3 (1) (5) 10 38 36 (0) (2) 12 27 27 Mar-15 27 17 (7) 14.2 11.1 9.5 10.2 88 96 0.7 22.6 2.3 0.5 5.9 (29)

Hitachi Construction Machinery

6305 JP U JPY 1,922 1,700 (12) 3,331 24.9 (0) (2) (3) (25) (29) 1 1 (1) (36) (37) Mar-15 (80) 17 71 13.5 68.1 58.4 34.1 45 29 3.1 1.4 1.0 0.8 10.9 44

IHI 7013 JP O JPY 337.0 600.0 78 4,249 47.1 (0) 1 (5) (45) (45) 1 4 (3) (56) (53) Mar-15 98 208 1 57.3 28.9 9.4 9.3 97 113 1.8 5.1 1.5 0.6 9.6 104

JGC Corporation 1963 JP U JPY 1,943 1,600 (18) 3,999 35.7 (2) (10) (1) (22) (22) (1) (7) 2 (33) (30) Mar-15 89 (21) 0 23.8 12.6 15.8 15.8 85 81 2.1 9.7 1.2 0.4 5.1 (43) JTEKT 6473 JP O JPY 2,153 2,500 16 6,020 24.4 (1) (6) (4) 5 2 (0) (3) (1) (6) (6) Mar-15 32 9 6 17.3 13.1 12.0 11.3 102 102 1.9 11.5 1.5 0.6 6.3 33 Kajima Corporation 1812 JP U JPY 708.0 760.0 7 5,994 38.6 (0) (2) 4 42 54 1 0 6 31 45 Mar-15 141 3 35 48.6 20.1 19.5 14.4 97 84 1.0 8.1 1.6 0.5 13.2 27

Kawasaki Heavy Industries, Ltd.

7012 JP N JPY 472.0 650.0 38 6,428 57.9 (0) (4) (4) (15) (17) 1 (1) (2) (25) (25) Mar-15 31 3 7 15.3 11.7 11.3 10.6 101 100 2.5 14.7 1.6 0.7 7.4 72

Keyence 6861 JP N JPY 64,970 58,000 (11) 32,133 101.7 (0) (3) (3) 21 17 1 0 (1) 10 9 Mar-15 18 10 na 32.5 27.5 24.9 na 103 99 0.3 14.4 3.7 8.2 15.0 (71)

Komatsu 6301 JP N JPY 1,969 2,100 7 15,126 90.0 (1) (4) (4) (27) (31) (0) (1) (1) (37) (39) Mar-15 (12) (10) 14 12.1 13.8 15.2 13.4 97 86 2.9 8.7 1.2 1.3 7.6 31 Kubota 6326 JP O JPY 2,045 2,500 22 20,749 68.6 (0) (3) 3 16 11 1 (0) 5 6 2 Dec-14 (12) 42 15 18.2 20.7 14.6 12.6 104 102 1.5 10.8 2.2 2.2 13.0 26 LIXIL Group 5938 JP U JPY 2,751 2,300 (16) 6,415 32.8 (0) (4) (1) 8 3 0 (1) 1 (3) (5) Mar-15 (47) 352 21 35.8 67.1 14.9 12.2 45 101 2.2 2.2 1.5 0.8 10.0 101

Makita 6586 JP N JPY 6,670 7,300 9 7,380 30.8 (1) (3) 1 22 15 0 0 3 11 7 Mar-15 (4) 13 4 20.0 20.9 18.5 17.8 96 95 1.4 8.5 1.8 1.7 9.2 (36) Mitsubishi Heavy Industries 7011 JP O JPY 608.8 800.0 31 16,689 81.4 (2) (6) (1) (9) (14) (1) (3) 1 (20) (22) Mar-15 55 19 15 18.5 12.0 10.0 8.7 116 117 2.5 9.2 1.1 0.6 5.3 25 NSK 6471 JP O JPY 1,476 1,700 15 6,515 42.1 (1) (7) 1 2 (2) (0) (4) 4 (8) (10) Mar-15 8 10 2 12.9 11.9 10.9 10.7 99 106 2.3 13.9 1.7 0.9 6.7 22

NTN 6472 JP N JPY 572.0 630.0 10 2,480 27.0 (1) (4) (2) 6 6 (0) (1) 0 (4) (2) Mar-15 (19) 58 (5) 13.0 16.0 10.1 10.6 71 89 1.7 7.5 1.2 0.8 6.6 98 Nabtesco Corporation 6268 JP N JPY 2,589 2,600 0 2,620 18.5 0 (3) 6 (12) (14) 1 (1) 8 (22) (22) Dec-14 (33) 51 16 18.5 27.5 18.2 15.7 96 95 1.7 7.6 2.1 1.6 11.4 (17) Obayashi Corporation 1802 JP O JPY 1,119 1,280 14 6,554 41.9 0 (4) 7 43 55 1 (1) 9 32 47 Mar-15 31 18 9 28.0 21.3 18.0 16.5 82 89 1.0 7.2 1.5 0.6 13.4 39

Okuma Corporation 6103 JP O JPY 1,111 1,400 26 1,452 21.6 (1) (2) 5 16 13 0 1 7 6 5 Mar-15 20 5 (43) 15.7 13.1 12.5 21.7 103 108 1.6 10.6 1.4 0.8 5.4 (22) Rinnai 5947 JP N JPY 10,790 9,600 (11) 4,575 11.7 (0) (2) 2 33 28 0 1 5 22 19 Mar-15 10 10 (10) 27.2 24.7 22.4 24.9 97 99 0.8 8.9 2.1 1.6 11.0 (22) SMC 6273 JP O JPY 32,450 37,000 14 17,772 61.7 (1) (3) 1 2 (2) 0 (0) 4 (9) (10) Mar-15 (5) 12 1 19.9 21.0 18.7 18.5 98 106 0.6 10.8 2.2 3.6 11.3 (43)

Shimizu Corporation 1803 JP O JPY 1,005 1,500 49 6,429 40.3 (0) (5) (4) 22 28 0 (2) (1) 12 20 Mar-15 38 20 8 23.6 17.1 14.2 13.2 92 98 1.0 9.3 1.5 0.6 12.1 33 Sumitomo Heavy Industries 6302 JP N JPY 539.0 630.0 17 2,693 21.7 (2) (7) (4) (17) (23) (1) (4) (2) (28) (31) Mar-15 11 17 5 13.6 12.2 10.5 10.0 95 102 2.4 7.3 0.9 0.5 5.4 7 THK 6481 JP O JPY 2,408 2,800 16 2,485 24.7 (1) (4) 1 (18) (19) 0 (1) 3 (28) (27) Mar-15 (40) 17 (11) 13.4 22.5 19.3 21.8 82 89 2.1 5.3 1.2 1.2 7.6 (21)

TOTO 5332 JP U JPY 4,110 3,900 (5) 5,641 33.4 (2) (4) (6) 46 43 (1) (1) (4) 35 35 Mar-15 42 4 (14) 27.8 19.6 18.8 21.9 108 101 1.5 12.5 2.3 1.2 10.2 (7) Taisei Corporation 1801 JP N JPY 786.0 900.0 15 7,496 58.7 (1) (3) 1 14 27 0 0 3 4 19 Mar-15 35 11 8 24.1 17.8 16.0 14.8 92 96 1.4 10.2 1.7 0.5 10.2 (14) Tsubakimoto Chain 6371 JP N JPY 943.0 1,000 6 1,430 5.7 (1) (5) (3) (3) (8) 0 (2) (0) (14) (16) Mar-15 6 4 (2) 12.5 11.8 11.3 11.5 98 96 2.1 10.3 1.2 0.9 5.6 2

Sector* 11 267,293 (1) (3) (0) 8 6 0 (1) 2 (3) (3) Mar-15 9 17 3 20.1 18.5 15.9 14.9 98 101 1.6 9.9 1.8 1.0 9.1 9

Chemicals Masami Sawato - 81 3 4550 9729

Asahi Kasei 3407 JP N JPY 794.2 1,000 26 9,048 76.9 (1) (4) 5 (28) (28) (0) (2) 7 (39) (37) Mar-15 (0) 4 7 10.5 10.5 10.1 9.4 112 105 2.5 9.4 1.0 0.6 4.5 12 Denka 4061 JP N JPY 535.0 540.0 1 1,966 10.3 (2) (5) (6) 20 20 (2) (2) (4) 10 11 Mar-15 (3) 8 6 12.9 13.2 12.3 11.7 94 95 2.3 8.6 1.1 0.9 6.5 43 Hitachi Chemical 4217 JP O JPY 1,940 2,900 49 3,293 16.2 (2) (7) (6) (10) (15) (1) (4) (4) (20) (23) Mar-15 66 17 8 17.7 10.6 9.1 8.5 108 115 1.9 10.5 1.1 0.6 4.4 (9)

JSR 4185 JP N JPY 1,850 2,100 14 3,402 23.1 (1) (5) (2) (11) (16) (0) (2) (0) (21) (25) Mar-15 (5) 14 11 14.2 15.0 13.1 11.8 95 99 2.7 7.7 1.1 0.9 6.0 (17) Kuraray 3405 JP N JPY 1,538 1,650 7 4,399 24.0 (1) (3) (0) 12 2 0 (0) 2 1 (6) Dec-14 69 18 6 25.3 15.0 12.7 12.0 90 99 2.3 7.4 1.1 1.1 5.5 8 Kureha 4023 JP O JPY 465.0 630.0 35 651 3.7 (1) (5) (2) (8) (14) (0) (2) (0) (19) (22) Mar-15 (12) 23 14 8.7 9.9 8.0 7.0 103 113 2.4 6.7 0.6 1.2 8.2 89

Mitsubishi Chemical Holdings

4188 JP O JPY 771.3 1,030 34 9,263 40.2 (2) (5) (3) 31 19 (1) (2) (1) 21 11 Mar-15 22 45 11 18.6 15.3 10.5 9.5 104 112 1.8 7.5 1.1 0.6 5.1 72

Mitsubishi Gas Chemical 4182 JP N JPY 614.0 560.0 (9) 2,211 15.3 (2) (7) (3) 1 (4) (2) (4) (1) (9) (13) Mar-15 (32) 1 8 6.2 9.2 9.1 8.4 105 101 2.6 7.6 0.7 0.7 7.8 32

Mitsui Chemicals 4183 JP U JPY 524.0 360.0 (31) 4,279 41.9 (0) (1) 7 52 44 1 2 9 42 36 Mar-15 82 16 11 30.3 16.7 14.4 13.0 89 91 1.1 7.5 1.2 0.7 8.3 89 Nippon Kayaku 4272 JP O JPY 1,360 1,840 35 2,009 11.0 (0) 1 (0) (10) (10) 1 4 2 (20) (18) Mar-15 2 18 17 15.7 15.4 13.1 11.2 102 107 1.8 9.1 1.4 1.3 6.2 (8) Nippon Shokubai 4114 JP N JPY 9,300 8,900 (4) 3,077 14.3 (1) (1) (1) 17 23 (1) 2 1 7 14 Mar-15 23 8 9 19.8 16.1 14.9 13.7 92 92 1.4 8.6 1.3 1.0 7.7 3

Nippon Soda 4041 JP N JPY 722.0 930.0 29 916 6.6 (1) (4) (13) 8 3 (1) (1) (11) (2) (5) Mar-15 29 (16) 5 10.0 7.8 9.3 8.8 85 77 1.7 11.3 0.8 1.0 10.5 21 SUMCO 3436 JP U JPY 1,191 1,050 (12) 2,847 40.2 0 (7) 10 (32) (30) 1 (4) 12 (42) (38) Dec-14 13 14 8 18.8 16.6 14.6 13.4 114 107 1.7 10.7 1.7 1.9 8.4 48 Sanyo Chemical 4471 JP O JPY 1,001 1,160 16 900 1.8 (0) 1 4 15 17 0 4 6 4 9 Mar-15 33 28 21 18.8 14.2 11.0 9.1 99 107 1.6 6.8 0.9 0.7 5.3 2

Shin-Etsu Chemical 4063 JP N JPY 6,762 7,100 5 23,478 72.9 (0) (3) (8) (14) (20) 1 0 (5) (25) (28) Mar-15 11 7 6 22.4 20.2 18.8 17.8 97 97 1.5 7.1 1.4 1.6 6.8 (37) Showa Denko 4004 JP N JPY 152.0 140.0 (8) 1,770 15.9 (1) (3) 0 2 (16) 0 (0) 2 (9) (24) Dec-14 176 105 18 63.1 22.9 11.1 9.4 98 100 2.0 3.1 0.7 0.7 6.8 99 Sumitomo Chemical 4005 JP N JPY 693.0 650.0 (6) 9,234 64.8 (2) (5) 0 45 35 (1) (3) 3 34 27 Mar-15 74 10 15 21.7 12.4 11.3 9.9 105 100 2.0 11.0 1.3 0.9 7.1 64

Teijin 3401 JP N JPY 412.0 480.0 17 3,306 28.7 (3) (7) (1) 28 24 (2) (4) 2 18 15 Mar-15 nm 2 8 nm 11.8 11.6 10.7 100 101 1.7 11.3 1.3 0.8 6.7 74 Tokuyama 4043 JP N JPY 262.0 220.0 (16) 743 8.6 (1) (1) (4) 7 (3) 0 2 (2) (4) (12) Mar-15 nm 83 22 nm 15.2 8.3 6.8 58 114 0.0 3.6 0.5 0.8 6.1 89 Toray Industries 3402 JP O JPY 1,078 1,470 36 14,044 60.2 (1) (5) (2) 11 11 (1) (2) 0 1 2 Mar-15 30 16 8 24.2 18.7 16.2 15.0 101 105 1.1 9.0 1.6 1.0 9.1 50

Tosoh 4042 JP N JPY 653.0 570.0 (13) 3,453 30.8 (1) (5) (2) 11 12 (0) (2) 1 1 4 Mar-15 (39) 2 3 6.3 10.3 10.2 9.8 92 91 1.5 12.8 1.2 0.8 6.2 46 Ube Industries 4208 JP N JPY 253.0 270.0 7 2,182 21.4 (2) (3) 0 41 30 (1) (1) 3 30 21 Mar-15 47 10 5 18.3 12.5 11.3 10.7 103 104 2.0 7.9 1.0 0.7 6.1 65 Zeon 4205 JP N JPY 971.0 1,140 17 1,796 10.1 (1) (3) (3) (11) (15) 0 (0) (1) (21) (23) Mar-15 26 4 7 11.5 9.2 8.8 8.2 106 100 1.5 10.8 0.9 0.8 5.0 22

Sector* 12 108,266 (1) (4) (2) 6 1 (0) (1) 0 (4) (7) Mar-15 34 13 9 19.3 14.5 12.8 11.7 100 101 1.7 8.5 1.2 0.8 6.4 31

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Japan—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Conglomerates Jun Yamaguchi - 81 3 4550 9789

Itochu Corp 8001 JP N JPY 1,449 1,450 0 18,662 94.1 (2) (5) (8) 12 9 (1) (2) (5) 2 1 Mar-15 10 5 7 7.6 6.9 6.6 6.1 98 99 3.5 12.9 0.8 1.0 14.7 103 Marubeni Corp 8002 JP N JPY 666.9 730.0 9 9,435 57.7 (0) (4) (5) (8) (9) 0 (1) (3) (18) (17) Mar-15 71 5 9 11.0 6.4 6.1 5.6 97 99 3.1 11.6 0.7 0.3 13.9 169 Mitsubishi Corp 8058 JP O JPY 2,003 2,400 20 25,855 121.2 (1) (5) (5) (10) (10) 0 (2) (2) (20) (18) Mar-15 (21) 15 11 8.1 10.3 8.9 8.0 97 101 2.5 5.6 0.6 1.2 30.2 86

Mitsui & Co 8031 JP N JPY 1,468 1,340 (9) 21,451 123.0 (1) (4) (5) (9) (9) (1) (1) (2) (20) (18) Mar-15 (22) 5 22 8.6 11.0 10.4 8.6 101 108 4.4 6.0 0.7 1.2 12.6 88 Sumitomo Corp 8053 JP N JPY 1,273 1,190 (7) 12,950 58.6 (1) (4) (5) 2 1 0 (2) (3) (8) (7) Mar-15 nm (4) 11 nm 7.4 7.7 6.9 95 93 3.9 8.6 0.6 0.6 19.2 139 Sector* 4 88,353 (1) (4) (5) (3) (4) (0) (2) (3) (14) (12) Mar-15 24 6 12 10.5 8.5 8.0 7.2 98 100 3.4 7.9 0.7 0.7 17.1 106

Consumer Durables & Apparel Mika Nishimura / Masahiro Mochizuki / Taketo Yamate - 81 3 4550 7369 / 81 3 4550 7389 / 81 3 4550 9963

Alpine 6816 JP N JPY 1,628 1,550 (5) 915 7.1 1 (6) (2) (18) (20) 2 (3) 0 (29) (28) Mar-15 13 (52) 27 8.9 7.9 16.5 12.9 94 106 2.5 9.6 0.7 0.1 5.1 (48)

Asics 7936 JP R JPY 2,700 4,173 26.9 (0) (3) (0) (7) (10) 1 (0) 2 (17) (18) na na na na na na na na na na na na Casio 6952 JP O JPY 2,772 2,800 1 5,905 44.8 (2) 2 12 49 43 (2) 5 14 38 35 Mar-15 38 12 9 27.4 19.8 17.7 16.3 105 105 1.6 16.9 3.2 1.9 11.8 (1) Citizen Holdings 7762 JP N JPY 877.0 1,000 14 2,276 18.1 (2) (5) (8) (6) (12) (1) (2) (6) (17) (21) Mar-15 13 7 9 16.2 14.3 13.4 12.3 97 98 2.1 8.0 1.1 0.7 5.3 (13)

Clarion 6796 JP N JPY 435.0 450.0 3 1,000 12.6 (0) (4) 5 16 10 0 (1) 7 5 2 Mar-15 49 16 18 25.2 16.9 14.5 12.3 101 101 0.9 19.4 3.1 0.7 6.4 72 Daiwa House Industry 1925 JP O JPY 3,365 3,400 1 18,231 53.0 (1) (3) 2 47 43 0 0 4 36 34 Mar-15 20 15 0 18.9 15.8 13.8 13.8 97 104 2.1 12.1 1.8 0.9 9.2 28 JVC Kenwood 6632 JP N JPY 323.0 300.0 (7) 366 8.6 (1) (8) 8 23 24 (0) (6) 10 12 16 Mar-15 (81) 208 44 9.6 51.2 16.6 11.6 67 159 1.5 1.2 0.6 0.1 2.2 (2)

Japan Display 6740 JP N JPY 373.0 410.0 10 1,828 29.2 (2) (1) (7) 1 1 (1) 2 (5) (10) (8) Mar-15 nm 24 22 nm 13.2 10.7 8.7 94 82 1.3 8.7 nm 0.2 2.1 5 Panasonic 6752 JP N JPY 1,300 1,500 15 24,596 105.0 (3) (8) (9) (9) (14) (2) (5) (7) (19) (22) Mar-15 6 23 14 16.7 15.8 12.9 11.3 97 97 1.5 10.0 1.6 0.3 3.8 (20) Pioneer 6773 JP N JPY 360.0 260.0 (28) 1,078 27.0 (1) (5) 7 56 44 (0) (2) 9 45 36 Mar-15 (93) 558 37 9.0 130.1 19.8 14.4 88 127 0.0 1.0 1.3 0.3 3.5 2

Seiko Holdings 8050 JP O JPY 779.0 950.0 22 1,291 12.0 (2) (4) (0) 15 13 (1) (2) 2 4 5 Mar-15 (40) 15 1 7.4 12.4 10.7 10.6 105 110 1.3 13.6 1.6 0.8 9.2 86 Sekisui Chemical 4204 JP O JPY 1,569 1,700 8 6,240 24.7 5 5 7 8 4 6 8 10 (3) (4) Mar-15 12 5 2 14.8 13.2 12.6 12.4 104 106 1.9 11.0 1.4 0.7 6.0 (4) Sekisui House 1928 JP O JPY 2,105 2,600 24 12,002 55.7 (1) (1) 5 33 33 0 2 7 22 25 Jan-15 14 21 5 16.6 14.6 12.0 11.4 101 108 2.6 9.2 1.3 0.9 8.6 15

Sharp 6753 JP U JPY 125.0 100.0 (20) 1,723 44.0 (1) (4) (4) (53) (56) 0 (1) (2) (64) (64) Mar-15 nm nm 55 nm nm 24.4 15.8 149 nm 0.0 (39.8) 1.0 0.2 6.4 160 Sony 6758 JP O JPY 3,027 4,200 39 31,121 244.3 (2) (4) (13) 22 22 (1) (2) (11) 12 13 Mar-15 nm 41 14 nm 19.8 14.1 12.4 101 109 0.8 8.3 1.6 0.4 4.0 (24) Sector* 18 112,744 (1) (4) (4) 18 15 (0) (1) (2) 7 7 Mar-15 335 31 11 77.4 17.8 13.5 12.4 103 106 1.5 9.0 1.6 0.5 5.3 (3)

Consumer Staples Masashi Mori / Taketo Yamate - 81 3 4550 9695 / 81 3 4550 9963

Asahi Group Holdings 2502 JP N JPY 3,909 4,100 5 14,591 55.1 (1) 0 2 4 1 (0) 3 5 (6) (7) Dec-14 15 (2) 5 26.2 22.9 23.3 22.2 99 86 1.2 8.7 1.9 1.1 10.6 33

Calbee 2229 JP N JPY 5,050 4,600 (9) 5,497 28.6 0 (2) 8 21 21 1 1 10 10 13 Mar-15 11 19 12 47.7 43.2 36.4 32.5 97 95 0.7 13.5 5.6 2.6 17.2 (45) FamilyMart 8028 JP R JPY 5,600 4,334 21.2 (0) (1) 9 23 24 1 2 11 13 16 na na na na na na na na na na na na Japan Tobacco 2914 JP O JPY 4,352 5,000 15 63,528 143.9 (2) (2) (2) 31 18 (1) 1 (0) 20 10 Dec-14 15 15 7 21.8 19.0 16.5 15.4 86 104 2.6 19.5 3.5 3.1 10.8 (10)

KOSE 4922 JP O JPY 11,760 14,500 23 5,469 66.0 (3) (8) 2 149 148 (2) (5) 5 138 140 Mar-15 77 9 10 55.6 31.5 28.8 26.1 102 97 0.7 14.3 4.3 2.5 14.5 (43) Kao 4452 JP O JPY 6,052 7,300 21 24,739 88.6 (2) (5) (1) 27 33 (1) (2) 1 17 25 Dec-14 19 16 6 38.7 32.6 28.1 26.6 99 94 1.3 13.6 4.3 2.0 12.3 (21) Kirin Holdings 2503 JP U JPY 1,730 1,350 (22) 12,866 47.0 (1) (1) 3 16 11 (1) 2 5 5 3 Dec-14 18 11 11 49.0 41.5 37.6 33.9 65 69 2.3 3.4 1.4 1.0 8.8 52

Lawson 2651 JP R JPY 9,590 7,810 28.5 (2) 0 6 32 31 (1) 3 8 21 23 na na na na na na na na na na na na Lion 4912 JP O JPY 1,166 1,450 24 2,843 12.8 (4) (6) (2) 85 74 (3) (3) 0 75 65 Dec-14 41 11 13 42.4 30.1 27.2 24.0 112 109 0.9 8.4 2.4 0.8 11.4 (20) Okamoto 5122 JP O JPY 1,077 1,450 35 866 8.8 (2) (7) 7 151 152 (1) (4) 9 141 144 Mar-15 95 11 19 37.0 19.0 17.1 14.3 100 100 0.9 11.4 2.1 1.1 9.7 (20)

PALTAC 8283 JP O JPY 2,331 2,750 18 1,208 3.8 (2) (5) 4 67 71 (1) (3) 6 57 63 Mar-15 9 4 8 14.4 13.2 12.7 11.8 111 113 2.1 7.6 1.0 0.2 7.9 9 Pigeon 7956 JP O JPY 3,005 3,600 20 2,934 31.2 (7) (14) (10) 28 31 (6) (11) (8) 17 23 Jan-15 24 16 11 42.6 34.3 29.5 26.5 103 100 1.3 21.4 6.9 3.6 19.0 (31) Pola Orbis HD 4927 JP O JPY 8,330 9,500 14 3,754 13.0 (2) (5) 6 72 75 (1) (2) 8 61 67 Dec-14 30 11 13 44.4 34.1 30.7 27.1 115 108 1.8 7.6 2.6 1.9 13.3 (34)

Rohto Pharma 4527 JP N JPY 2,312 2,200 (5) 2,147 10.2 (2) (4) 10 54 53 (1) (1) 12 43 44 Mar-15 16 8 8 30.4 26.3 24.3 22.4 104 103 0.9 8.8 2.2 1.4 10.5 (18) Shiseido 4911 JP U JPY 2,698 2,250 (17) 8,770 64.2 (2) (8) (2) 59 46 (1) (5) 1 49 38 Dec-14 (53) 33 29 31.9 68.1 51.2 39.8 115 75 0.7 4.0 2.7 1.4 15.4 (12) Suntory Beverage & Food 2587 JT N JPY 5,060 5,250 4 12,746 27.1 (2) 3 4 21 15 (1) 6 6 11 7 Dec-14 19 8 6 43.1 36.4 33.6 31.6 99 95 1.3 7.1 2.5 1.3 10.1 24

Unicharm 8113 JP N JPY 2,410 2,400 (0) 11,701 63.1 (2) (6) (9) (17) (19) (1) (3) (7) (28) (27) Dec-14 23 18 15 44.4 36.2 30.8 26.8 102 97 0.6 9.3 3.3 1.8 13.0 (22) Sector* 8 185,801 (2) (3) (0) 31 25 (1) 0 2 20 17 Mar-15 15 12 11 29.0 25.3 22.6 23.8 92 96 1.8 11.6 2.8 1.7 10.9 3

Diversified Financials Takehito Yamanaka - 81 3 4550 9150

ACOM 8572 JP U JPY 610.0 422.0 (31) 7,790 36.0 2 (1) (1) 65 79 3 1 1 54 71 Mar-15 150 120 (1) 74.3 29.8 13.5 13.7 79 118 0.3 9.8 2.8 na na na Aeon Financial Service 8570 JP N JPY 2,747 2,520 (8) 4,450 17.5 1 (4) (8) 14 6 1 (1) (6) 4 (2) Mar-15 23 13 14 18.8 15.3 13.6 11.9 103 106 2.5 13.1 1.9 na na na

Credit Saison 8253 JP O JPY 2,394 2,850 19 3,591 20.5 3 1 (3) 6 7 4 4 (1) (5) (2) Mar-15 182 11 7 34.8 12.3 11.2 10.4 97 111 1.5 7.7 0.9 na na na Daiwa Securities Group 8601 JP N JPY 773.1 867.0 12 10,774 59.1 (0) (3) (11) (18) (21) 0 (0) (9) (29) (30) Mar-15 (18) 3 5 8.9 10.9 10.5 10.0 93 94 3.6 9.6 1.0 na na na J Trust 8508 JP O JPY 1,079 1,500 39 1,044 3.1 (3) 13 8 2 1 (2) 16 11 (9) (8) Mar-15 (55) 188 26 12.6 28.1 9.7 7.7 100 100 0.6 2.4 0.7 na na na

Japan Exchange Group 8697 JP U JPY 1,875 1,240 (34) 8,392 29.3 1 (4) (4) 32 27 2 (2) (2) 22 19 Mar-15 (38) (0) na 15.0 23.9 23.9 na 134 146 2.2 17.7 2.0 na na na Kabu.com Securities 8703 JP N JPY 388.0 366.0 (6) 1,086 3.8 (2) (3) (4) 30 27 (1) (0) (2) 20 19 Mar-14 17 (4) 4 20.6 17.5 18.3 17.5 101 92 3.0 17.7 3.0 na na na Matsui Securities 8628 JP N JPY 1,131 1,005 (11) 2,367 10.1 (1) (2) 1 7 (1) 0 1 4 (3) (9) Mar-15 (2) na na 18.6 19.0 na na 100 na 4.0 17.1 3.0 na na na

Monex Group 8698 JP N JPY 322.0 340.0 6 746 6.5 (2) (4) (10) 11 6 (1) (2) (8) 1 (2) Mar-14 (72) 90 0 9.0 32.0 16.8 16.8 83 103 2.5 3.5 1.1 na na na Nomura Holdings 8604 JP O JPY 723.8 791.0 9 21,225 148.1 (1) (3) (9) 5 (0) 0 (0) (7) (6) (9) Mar-15 1 21 1 11.8 11.7 9.7 9.6 96 110 3.2 8.2 0.9 na na na Orix 8591 JP O JPY 1,780 2,380 34 19,026 94.5 1 (2) (3) 17 11 1 1 (1) 6 3 Mar-15 18 (12) 10 10.0 8.4 9.6 8.7 106 93 2.8 12.3 1.0 na na na

Tokai Tokyo Financial Holdings 8616 JP U JPY 724.0 640.0 (12) 1,557 8.0 (1) (4) (6) (13) (19) 0 (1) (4) (24) (28) Mar-15 (21) 4 1 10.4 13.1 12.6 12.5 89 90 3.9 9.3 1.2 na na na Sector* 6 82,048 0 (3) (6) 14 11 1 0 (4) 3 2 Mar-15 4 9 5 12.9 12.4 11.2 9.9 100 103 2.7 10.0 1.2 na na na

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Japan—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Energy David Hewitt - 65 6212 3064

INPEX Corporation 1605 JP O JPY 1,170 1,310 12 13,923 58.4 0 (5) (1) (13) (5) 1 (2) 1 (24) (14) Mar-15 (18) 11 16 21.9 26.7 24.1 20.7 102 89 1.5 2.5 0.7 1.7 4.1 3 Japan Petroleum Exploration 1662 JP N JPY 3,275 3,900 19 1,526 8.3 0 (4) (5) (14) (7) 1 (1) (3) (24) (16) Mar-15 (55) 34 51 8.0 17.7 13.3 8.8 106 99 1.5 2.9 0.5 0.9 7.6 3 Sector* 13 15,448 0 (5) (1) (13) (6) 1 (2) 1 (24) (14) Mar-15 (27) 14 22 18.7 25.5 22.3 18.2 102 91 1.5 2.5 0.6 1.5 4.3 3

Healthcare Fumiyoshi Sakai - 81 3 4550 9737

Astellas Pharma 4503 JP N JPY 1,674 1,900 14 29,026 109.8 (2) (5) (7) (1) (3) (2) (2) (5) (11) (12) Mar-15 34 15 10 27.2 20.3 17.6 15.9 97 102 2.0 13.3 2.7 2.3 10.3 (26)

Chugai Pharmaceutical 4519 JP O JPY 4,170 4,800 15 18,560 39.5 (2) (5) 2 41 27 (1) (2) 5 30 19 Dec-14 14 9 6 44.6 39.2 36.1 33.9 96 100 1.2 9.5 3.6 4.3 21.0 (25) Daiichi Sankyo 4568 JP N JPY 2,482 2,400 (3) 13,824 59.5 (2) (5) 1 47 39 (1) (2) 4 36 31 Mar-15 (76) (14) (5) 5.4 22.8 26.5 27.8 92 95 2.8 4.8 0.9 1.3 7.3 (24) Eisai 4523 JP U JPY 7,808 7,000 (10) 18,169 88.7 (2) (3) 2 67 65 (2) (0) 4 57 57 Mar-15 (38) (22) 12 51.5 82.5 106.1 94.8 124 103 1.9 4.6 3.8 4.2 27.3 16

Kyowa Hakko Kirin 4151 JP N JPY 2,102 2,200 5 9,377 24.1 (2) (8) 0 85 63 (1) (5) 3 75 55 Dec-14 67 (17) 9 72.4 43.4 52.3 47.9 94 89 1.2 4.3 2.0 3.2 13.5 (3) Mitsubishi Tanabe Pharma 4508 JP N JPY 2,039 2,100 3 9,325 23.7 (1) (4) (3) 15 12 (1) (1) (1) 5 4 Mar-15 19 1 12 29.0 24.3 24.1 21.6 98 93 2.2 6.0 1.4 2.3 9.3 (23) Ono Pharmaceutical 4528 JP O JPY 19,795 23,000 16 17,108 50.6 (1) (2) 17 84 81 (0) 0 19 74 73 Mar-15 23 100 78 161.7 131.2 65.6 36.8 110 135 0.9 3.4 4.4 13.9 84.7 (21)

Otsuka Holdings 4578 JP N JPY 4,225 4,200 (1) 18,649 53.5 (1) (1) 2 17 14 (0) 2 5 6 6 Dec-14 (22) (42) 26 16.0 20.4 35.2 27.9 113 90 2.4 6.9 1.4 1.1 6.4 (44) Santen Pharmaceutical 4536 JP O JPY 1,969 2,300 17 6,642 26.0 (1) (3) 11 52 49 0 (0) 13 42 41 Mar-15 14 13 13 33.8 29.6 26.2 23.2 48 104 1.2 12.5 3.5 4.1 15.4 (17) Sawai Pharmaceutical 4555 JP N JPY 7,860 7,800 (1) 2,362 16.9 (1) 4 7 13 12 (0) 7 9 3 3 Mar-15 13 1 9 20.6 18.2 18.1 16.5 97 90 1.4 13.4 2.4 2.4 10.1 7

Shionogi 4507 JP O JPY 5,256 6,500 24 13,950 67.1 (1) (5) 1 68 62 (0) (2) 4 58 54 Mar-15 39 15 16 39.6 28.5 24.8 21.4 98 102 1.1 12.0 3.3 5.3 16.5 (23) Sumitomo Dainippon Pharma 4506 JP U JPY 1,444 1,100 (24) 4,677 15.5 (1) (3) 4 23 19 (1) 0 7 13 11 Mar-15 33 (10) 22 37.1 28.0 31.0 25.5 103 72 1.2 4.5 1.2 1.3 11.2 (13) Sysmex 6869 JP O JPY 7,550 9,800 30 12,787 41.2 (1) (3) 4 40 42 (0) 0 7 30 34 Mar-15 28 12 9 58.8 46.0 41.2 37.7 98 96 0.4 18.5 8.0 6.0 22.8 (25)

Taisho Pharmaceutical Holdings 4581 JP U JPY 8,160 7,600 (7) 5,996 7.8 (1) (3) 3 10 9 (0) (0) 5 (0) 1 Mar-15 (10) (9) 3 27.0 30.1 33.1 32.3 96 92 1.2 3.4 1.0 1.9 14.0 (26) Takeda Pharmaceutical 4502 JP N JPY 5,825 6,300 8 37,200 109.0 (2) (3) (5) 17 14 (1) (1) (3) 6 6 Mar-15 nm 38 17 nm 55.9 40.5 34.7 102 93 3.1 3.9 2.2 2.6 26.0 9 Terumo 4543 JP N JPY 3,850 3,900 1 11,793 42.6 (1) (4) (1) 40 34 0 (1) 1 29 26 Mar-15 29 3 8 38.0 29.5 28.7 26.6 101 100 1.0 8.4 2.4 2.9 10.7 9

Tsumura & Co 4540 JP O JPY 3,485 3,800 9 2,004 9.6 1 (1) 7 30 26 2 2 9 20 17 Mar-15 (3) (3) 12 17.5 18.1 18.6 16.6 104 104 1.8 8.9 1.6 2.3 10.7 13 Sector* 8 231,449 (2) (4) 1 37 32 (1) (1) 3 26 24 Mar-15 6 5 14 35.3 33.3 31.8 27.8 96 97 1.8 6.8 2.2 2.7 14.7 (16)

Hotels, Restaurants & Leisure Masashi Mori - 81 3 4550 9695

Sanrio 8136 JP N JPY 2,905 3,000 3 2,009 13.4 (2) (3) (2) (3) (11) (1) 0 0 (14) (20) Mar-15 (16) 2 7 19.8 23.5 23.1 21.5 95 92 2.8 15.9 3.6 2.9 12.4 (48)

Insurance Takehito Yamanaka - 81 3 4550 9150

Dai-ichi Life Insurance 8750 JP O JPY 2,042 2,990 46 19,720 113.7 (3) (5) (13) 11 15 (3) (2) (11) 0 7 Mar-15 25 31 na 17.1 13.6 10.4 na 98 109 1.7 4.8 0.6 na na na

MS&AD Insurance Group Holdings

8725 JP O JPY 3,488 4,700 35 17,260 59.3 (1) (2) (9) 21 20 0 1 (6) 11 12 Mar-15 35 4 5 15.7 11.6 11.2 10.7 111 102 2.0 6.2 0.7 na na na

Sompo Japan Nipponkoa Holdings

8630 JP N JPY 3,823 4,580 20 12,594 49.4 (1) (1) (5) 25 22 (0) 2 (3) 15 14 Mar-15 195 11 8 28.7 9.8 8.8 8.2 101 103 2.1 8.9 0.9 na na na

Sony Financial Holdings 8729 JP N JPY 2,212 2,200 (1) 7,844 24.2 (4) (4) (2) 24 22 (3) (1) 0 14 14 Mar-15 6 4 8 17.7 16.7 16.0 14.8 106 97 2.5 10.2 1.7 na na na T&D Holdings 8795 JP N JPY 1,682 1,760 5 8,892 40.2 (3) (4) (6) 15 12 (2) (1) (4) 5 4 Mar-15 (5) 8 na 11.9 12.5 11.6 na 104 104 1.5 6.4 0.8 na na na

Tokio Marine Holdings 8766 JP R JPY 4,576 28,150 87.9 (1) (1) (8) 16 14 (0) 1 (6) 6 6 Mar-15 2 1 4 14.0 13.7 13.6 13.1 101 88 2.3 6.9 0.9 na na na Sector* 27 94,459 (2) (3) (8) 18 17 (1) 0 (6) 7 9 Mar-15 26 10 6 16.0 12.7 11.5 11.3 103 99 2.0 6.6 0.8 na na na

Metals & Mining Shinya Yamada - 81 3 4550 9910

Aichi Steel 5482 JP N JPY 537.0 530.0 (1) 861 1.9 0 (2) 4 26 28 1 1 7 16 20 Mar-15 49 6 11 17.5 11.7 11.1 10.1 116 107 1.9 5.9 0.7 0.6 5.5 32 Daido Steel 5471 JP N JPY 488.0 580.0 19 1,717 8.9 (2) (7) 1 7 13 (1) (4) 3 (4) 5 Mar-15 79 18 11 19.4 10.9 9.2 8.3 133 120 2.0 7.5 0.8 0.4 4.0 0

Dowa Holdings 5714 JP N JPY 901.0 880.0 (2) 2,174 13.4 (1) (4) (1) (7) (7) (0) (1) 1 (17) (16) Mar-15 (13) 13 15 10.0 11.6 10.3 8.9 95 93 1.8 11.7 1.3 0.8 5.9 27 Hitachi Metals 5486 JP O JPY 1,563 1,890 21 5,448 24.7 (0) (5) 11 (24) (23) 1 (2) 13 (35) (31) Mar-15 (4) (10) 8 9.5 9.9 11.0 10.1 98 103 1.7 13.6 1.3 0.8 5.6 28 JFE Holdings 5411 JP N JPY 1,875 1,800 (4) 8,816 71.0 (3) (8) (2) (30) (32) (2) (5) (0) (41) (41) Mar-15 (68) 164 38 7.8 24.6 9.3 6.8 53 95 2.1 2.3 0.6 0.7 8.6 73

Kobe Steel 5406 JP O JPY 142.0 210.0 48 4,197 43.6 (1) (1) (3) (32) (31) (1) 2 (1) (43) (39) Mar-15 (71) 137 32 6.0 20.4 8.6 6.5 82 122 2.8 3.2 0.7 0.6 5.3 67 Kyoei Steel 5440 JP O JPY 2,139 2,400 12 758 3.7 2 (1) 3 2 2 2 2 6 (8) (7) Mar-15 3 17 7 13.4 13.1 11.2 10.4 95 103 1.6 5.5 0.7 0.5 5.2 (6) Maruichi Steel Tube 5463 JP U JPY 3,385 2,400 (29) 2,302 6.4 (1) (2) 7 32 31 (0) 1 9 21 23 Mar-15 20 (9) (5) 30.8 25.8 28.4 29.9 87 73 2.1 4.5 1.1 1.4 9.4 (25)

Mitsubishi Materials 5711 JP O JPY 414.0 490.0 18 4,423 29.2 (1) (5) (0) 3 6 (0) (3) 2 (8) (2) Mar-15 15 (13) 9 9.7 8.4 9.7 8.9 102 105 2.4 10.3 0.8 0.7 7.4 75 Mitsui Mining & Smelting 5706 JP N JPY 221.0 220.0 (0) 1,030 16.4 (2) (7) (8) (25) (25) (1) (4) (5) (35) (34) Mar-15 (59) 157 7 7.3 18.0 7.0 6.6 69 97 2.7 3.5 0.6 0.7 18.9 86 Nippon Steel & Sumitomo Metal 5401 JP N JPY 2,407 2,150 (11) 18,104 94.7 (1) (6) (3) (20) (24) (0) (3) (1) (31) (32) Mar-15 692 33 9 106.3 13.4 10.1 9.3 81 97 2.3 5.8 0.8 0.8 8.1 57

Osaka Titanium Technologies 5726 JP O JPY 2,692 4,900 82 808 8.0 (3) (8) (15) 17 27 (2) (5) (13) 6 18 Mar-15 (27) 220 89 37.2 51.2 16.0 8.5 118 210 0.7 4.4 2.2 2.9 17.1 85 Sumitomo Metal Mining 5713 JP N JPY 1,370 1,400 2 6,165 52.5 (1) (4) (10) (24) (26) (0) (1) (7) (35) (34) Mar-15 (15) 9 13 8.3 9.8 9.0 8.0 102 107 2.9 7.1 0.7 1.1 7.4 17 Toho Titanium 5727 JP O JPY 1,139 1,800 58 661 8.5 (3) (8) (26) 45 46 (2) (5) (24) 34 37 Mar-15 nm 22 56 nm 21.9 18.0 11.6 104 93 0.4 11.1 2.3 2.7 12.2 106

Yamato Kogyo 5444 JP O JPY 3,065 4,100 34 1,693 8.8 (3) (5) (7) (10) (14) (2) (2) (5) (20) (22) Mar-15 16 27 25 15.5 13.4 10.5 8.4 101 117 1.3 5.3 0.7 0.8 8.0 (29) Sector* 5 59,156 (1) (5) (2) (16) (17) (1) (2) 0 (26) (25) Mar-15 (2) 33 17 13.1 13.4 10.0 8.6 87 102 2.2 5.8 0.8 0.8 7.4 48

Paper & Forest Products Jun Yamaguchi - 81 3 4550 9789

Nippon Paper Industries 3863 JP U JPY 1,911 1,700 (11) 1,811 15.5 (2) (3) (7) 10 10 (1) (0) (5) (0) 2 Mar-15 (22) (2) 11 9.5 12.3 12.6 11.3 103 114 3.1 3.7 0.5 0.8 9.9 124 Oji Holdings 3861 JP R JPY 505.0 4,069 20.6 (1) (5) (16) 17 19 (0) (3) (14) 6 11 Mar-15 124 (1) (0) 28.8 12.9 12.9 13.0 106 100 2.4 6.0 0.8 0.7 6.4 69

Rengo 3941 JP N JPY 506.0 510.0 1 1,022 5.2 (3) (6) (9) 2 3 (2) (3) (7) (9) (5) Mar-15 21 41 31 21.9 18.2 12.9 9.9 94 108 2.4 3.2 0.6 0.6 7.6 90 Sector* (7) 6,902 (2) (5) (13) 13 14 (1) (2) (11) 2 6 Mar-15 38 3 7 18.3 13.3 12.8 12.0 104 105 2.6 4.7 0.6 0.7 7.7 91

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Japan—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Real Estate Masahiro Mochizuki - 81 3 4550 7389

Daito Trust Construction 1878 JP O JPY 13,525 15,000 11 8,592 37.7 (0) 3 6 (1) (1) 0 6 8 (12) (9) Mar-15 17 6 7 18.9 16.1 15.2 14.3 101 100 3.1 26.5 4.2 0.6 8.6 (78) Hulic 3003 JP U JPY 1,083 900.0 (17) 5,817 15.4 (0) (3) 2 (11) (6) 1 (0) 4 (21) (14) Dec-14 30 (5) 10 28.7 22.1 23.2 21.1 113 106 1.4 12.7 2.3 5.0 21.9 159 Mitsubishi Estate 8802 JP N JPY 2,549 2,800 10 28,834 109.1 (0) (3) 0 (0) (2) 1 0 2 (11) (11) Mar-15 8 4 11 48.2 44.5 42.8 38.4 104 100 0.5 5.2 2.3 5.4 24.0 113

Mitsui Fudosan 8801 JP O JPY 3,103 3,700 19 24,996 116.9 (1) (2) (1) (5) (8) 0 1 1 (15) (16) Mar-15 13 12 13 30.6 27.0 24.1 21.4 103 105 0.9 5.9 1.6 3.1 19.3 103 Nomura Real Estate Holdings

3231 JP O JPY 2,391 3,000 25 3,735 19.6 (0) (4) (1) 15 10 1 (1) 1 5 2 Mar-15 10 6 1 11.9 10.9 10.2 10.1 103 105 2.3 10.0 1.0 1.9 11.8 142

Nomura Real Estate Master Fund

3285 JP O JPY 153,300 170,000 11 2,081 10.9 0 0 0 (1) (4) 1 3 2 (12) (12) Feb-15 1 5 na 31.0 30.9 29.5 na 155 115 3.3 5.1 1.5 27.1 62

Sumitomo Realty & Development

8830 JP O JPY 3,704 4,300 16 14,317 79.3 (1) (2) (1) (10) (12) (0) 1 1 (21) (20) Mar-15 14 7 3 21.8 19.1 17.9 17.3 102 102 0.6 10.5 1.9 5.6 21.6 307

Tokyo Tatemono 8804 JP U JPY 1,433 1,100 (23) 2,514 24.3 (0) (5) (2) (19) (25) 0 (2) 0 (29) (33) Dec-14 (83) (8) 14 3.7 21.5 23.5 20.7 102 104 1.1 4.9 1.0 4.0 21.4 213 Tokyu Fudosan Holdings 3289 JP O JPY 794.0 1,100 39 3,940 22.6 (1) (6) (2) (6) (5) (1) (3) 0 (16) (13) Mar-15 11 22 1 19.2 17.2 14.1 14.0 99 104 1.5 6.9 1.2 2.1 18.2 270

Sector* 13 94,826 (0) (2) 0 (4) (6) 0 1 2 (14) (14) Mar-15 (0) 8 8 24.5 24.5 22.7 21.1 103 103 1.1 7.7 1.8 3.1 19.4 148

REITS Masahiro Mochizuki - 81 3 4550 7389

Advance Residence 3269 JP O JPY 262,100 300,000 14 2,778 6.8 (0) 1 0 (18) (16) 0 3 3 (29) (24) Jul-15 (2) 2 na 27.2 27.7 27.2 na 104 105 3.6 5.9 1.6 27.3 105 Frontier Real Estate Investment Corporation

8964 JP O JPY 494,000 530,000 7 1,997 4.0 (1) (2) 2 (10) (14) 0 1 4 (21) (23) Dec-14 (8) 2 na 23.8 25.9 25.4 na 101 103 3.9 6.2 1.6 21.1 42

GLP J-REIT 3281 JP O JPY 120,700 140,000 16 2,552 8.7 (1) (2) 1 (9) (11) (0) 1 3 (20) (19) Aug-15 6 0 na 30.9 29.0 29.0 na 104 102 3.9 6.1 1.7 27.4 97 Japan Logistics Fund 8967 JP O JPY 234,600 270,000 15 1,683 4.6 0 1 3 (13) (14) 1 4 5 (23) (22) Jul-15 (22) 2 na 22.5 28.9 28.2 na 100 102 3.5 5.8 1.6 24.2 55 Japan Prime Realty Investment Corporation

8955 JP U JPY 418,000 340,000 (19) 2,975 7.5 (0) (1) 6 0 (4) 1 2 9 (11) (12) Dec-14 4 3 na 33.4 32.3 31.3 na 99 100 3.1 5.5 1.7 28.2 56

Japan Real Estate Investment Corporation

8952 JP U JPY 573,000 556,000 (3) 6,116 15.8 (0) 0 5 (1) (2) 0 3 7 (12) (11) Sep-14 3 7 na 38.5 37.5 34.9 na 99 102 2.7 4.4 1.6 30.6 70

Nippon Accommodations Fund

3226 JP O JPY 420,000 540,000 29 1,659 3.2 (2) (2) 1 (11) (13) (1) 1 3 (22) (22) Aug-14 0 2 na 27.8 27.7 27.2 na 99 100 3.7 5.5 1.5 26.4 98

Nippon Building Fund 8951 JP N JPY 578,000 570,000 (1) 6,653 17.6 (0) 1 3 (4) (3) 0 4 5 (15) (11) Dec-14 (8) 6 na 34.6 37.4 35.1 na 100 102 2.7 4.1 1.5 29.7 77 Nippon Prologis REIT 3283 JP N JPY 219,500 269,386 23 3,097 9.0 0 3 (1) (15) (13) 1 6 1 (26) (22) Nov-14 5 2 na 34.0 32.3 31.6 na 100 97 3.6 4.9 1.6 27.0 63 Tokyu REIT 8957 JP N JPY 148,300 140,000 (6) 1,182 2.8 (0) (1) 2 (9) (6) 0 2 4 (20) (14) Jul-15 (1) (3) na 28.7 29.1 30.0 na 103 99 3.4 4.4 1.3 28.7 84

United Urban Investment Corporation

8960 JP N JPY 159,500 200,000 25 3,577 11.8 (0) (0) (3) (16) (15) 1 3 (1) (26) (23) Nov-14 6 2 na 28.7 27.0 26.5 na 101 100 3.7 5.8 1.5 25.2 69

Sector* 7 34,269 (0) 0 2 (8) (8) 0 3 4 (19) (17) Mar-15 1 (1) na 31.4 31.1 28.4 na 100 103 3.3 5.1 1.6 27.3 74

Software & Services Fumiyoshi Sakai / Hitoshi Hayakawa - 81 3 4550 9737 / 81 3 4550 9952

M3, Inc. 2413 JP O JPY 2,708 3,600 33 7,144 37.7 (2) 0 15 34 37 (1) 3 17 23 29 Mar-15 38 21 18 89.7 64.9 53.4 45.4 108 106 0.5 27.1 16.1 13.3 37.5 (40)

Rakuten, Inc. 4755 JP O JPY 1,502 2,400 60 17,432 92.2 (0) (3) (4) (11) (6) 0 (0) (2) (21) (14) Dec-14 6 14 14 28.1 26.5 23.1 20.3 113 100 0.3 15.8 3.4 3.1 13.6 (1) Recruit Holdings Co., Ltd 6098 JP N JPY 3,640 3,900 7 16,756 47.9 (2) (5) (7) 6 2 (1) (3) (4) (5) (7) Mar-15 (9) 8 9 28.5 31.3 29.0 26.7 98 95 1.4 11.2 3.4 1.1 11.3 (38)

Yahoo Japan 4689 JP N JPY 526.0 490.0 (7) 24,409 50.2 0 (1) 7 21 23 1 2 9 10 15 Mar-15 7 5 4 22.5 21.1 20.2 19.3 88 103 1.7 18.4 3.7 5.3 10.8 (67) Sector* 19 65,740 (1) (3) 1 10 12 (0) 0 3 (0) 3 Mar-15 4 9 7 27.6 26.5 24.4 23.6 96 100 1.1 15.6 3.8 2.6 12.6 (39)

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Japan—valuation summary (continued) Bberg Price Market Avg Absolute performance Relative performance FYE EPS growth P/E CS / Divd ROE P/B EV/ EV/ Net debt/ daily con. EPS yld sales EBITDA equity

Stock ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Technology Hardware Akinori Kanemoto / Hideyuki Maekawa / Shinji Kuroda - 81 3 4550 7363 / 81 3 4550 9723 / 81 3 4550 9994

Advantest 6857 JP U JPY 1,108 780.0 (30) 1,577 23.5 1 (2) 10 (27) (28) 2 1 13 (37) (37) Mar-15 (78) (293) nm 14.9 69.0 nm nm 45 nm 1.8 2.0 1.3 0.8 13.2 (56) Alps Electric 6770 JP O JPY 3,615 5,200 44 5,664 134.2 (3) (3) (9) 57 55 (2) (1) (7) 46 47 Mar-15 67 33 9 20.4 12.2 9.2 8.4 110 136 0.8 28.1 2.8 0.8 5.6 (20) DISCO 6146 JP O JPY 11,990 13,500 13 3,496 24.8 (0) 2 10 23 23 1 5 13 13 14 Mar-15 16 2 (6) 20.6 17.8 17.3 18.4 110 105 2.6 15.1 2.5 2.9 9.1 (33)

Fujitsu 6702 JP N JPY 649.1 740.0 14 10,947 66.8 0 2 7 1 (6) 1 5 10 (10) (15) Mar-15 (29) 33 5 9.6 13.5 10.1 9.6 101 103 1.5 13.6 1.7 0.3 5.6 19 Hirose Electric 6806 JP N JPY 15,320 14,300 (7) 4,367 15.2 (1) 1 (1) 14 10 (0) 4 2 4 1 Mar-15 (7) 11 4 22.6 24.5 22.1 21.3 99 107 1.6 7.5 1.8 2.9 8.4 (61) Hitachi 6501 JP O JPY 723.1 1,000 38 28,462 140.4 (1) (3) (1) (20) (21) 0 0 1 (30) (29) Mar-15 36 23 8 14.5 10.6 8.7 8.1 103 116 2.2 10.7 1.1 0.6 5.0 54

Hitachi Kokusai Electric 6756 JP N JPY 1,807 1,650 (9) 1,513 9.7 (1) (2) 3 6 5 (0) 1 5 (4) (4) Mar-15 9 (22) 12 12.6 11.5 14.9 13.3 95 85 2.0 16.1 1.7 0.7 5.1 (53) IBIDEN 4062 JP U JPY 1,851 1,880 2 2,084 22.0 (2) (3) (2) 4 2 (2) (0) 0 (7) (6) Mar-15 (15) (3) 7 13.4 15.8 16.2 15.1 84 91 1.9 4.5 0.7 1.0 4.6 20 Japan Aviation Electronics Industry

6807 JP O JPY 1,972 4,200 113 1,460 17.6 (2) (9) (13) (26) (30) (1) (6) (11) (36) (39) Mar-15 42 13 7 11.4 8.0 7.1 6.6 121 124 1.8 20.6 1.5 0.7 3.0 (25)

Kyocera 6971 JP N JPY 5,699 6,200 9 17,044 67.6 (2) (3) (5) 3 (1) (1) (0) (3) (8) (9) Mar-15 (2) 3 11 18.0 18.5 18.0 16.3 119 110 1.8 5.0 0.9 0.9 6.5 (29) Mitsubishi Electric 6503 JP N JPY 1,324 1,750 32 23,171 87.7 (1) (6) 0 (8) (12) (1) (3) 2 (19) (21) Mar-15 (1) 7 9 12.1 12.2 11.4 10.5 104 106 2.1 12.0 1.4 0.6 5.1 (16)

Mitsumi Electric 6767 JP N JPY 641.0 800.0 25 424 8.5 (0) (3) 0 (33) (40) 0 (0) 3 (44) (49) Mar-15 (39) 46 3 14.7 23.9 16.4 15.9 nm 144 1.9 2.3 0.5 0.2 2.8 (14) Murata Manufacturing 6981 JP O JPY 19,010 22,000 16 32,808 176.3 (0) (0) (3) 43 44 1 2 (1) 33 36 Mar-15 31 19 11 24.0 18.3 15.5 13.9 103 113 1.5 18.5 3.2 2.9 9.1 (30) NEC 6701 JP N JPY 395.0 390.0 (1) 8,368 57.5 (1) (4) 1 12 3 (0) (1) 4 1 (5) Mar-15 36 31 10 17.9 13.2 10.1 9.2 111 122 2.0 8.4 1.1 0.2 2.7 (50)

NGK Spark Plug 5334 JP O JPY 3,365 3,600 7 5,970 22.9 (2) (4) 2 (8) (8) (1) (1) 5 (19) (16) Mar-15 4 51 9 19.9 19.2 12.7 11.6 96 110 1.4 10.6 1.9 1.8 8.2 (5) Nidec 6594 JP O JPY 9,200 10,400 13 22,359 123.1 (1) (2) (4) 17 14 0 1 (2) 7 6 Mar-15 40 26 15 36.0 25.6 20.4 17.7 103 107 1.1 13.7 3.3 2.2 13.4 (1) Nissha Printing 7915 JP U JPY 2,627 2,200 (16) 919 4.9 0 (5) (6) 30 39 1 (2) (3) 19 31 Mar-15 (31) 0 (25) 10.0 14.6 14.6 19.5 100 100 1.1 11.1 1.6 0.8 5.0 (36)

ROHM 6963 JP O JPY 6,790 7,800 15 5,855 40.9 (1) 1 2 (8) (14) (0) 4 4 (18) (22) Mar-15 (31) 5 21 16.2 23.4 22.4 18.6 91 95 1.9 4.2 1.0 1.1 5.2 (38) SCREEN Holdings 7735 JP N JPY 902.0 920.0 2 1,745 18.7 0 (1) 20 26 23 1 2 22 16 14 Mar-15 22 23 3 17.7 14.5 11.8 11.4 103 116 1.1 12.7 1.8 0.9 11.0 3 Shinko Electric Industries 6967 JP O JPY 860.0 1,000 16 947 6.1 (1) (2) 7 4 7 0 1 9 (6) (1) Mar-15 52 2 6 18.0 11.9 11.7 11.0 156 140 2.9 7.0 0.8 0.4 2.1 (34)

TDK 6762 JP O JPY 8,920 9,800 10 9,161 81.3 (0) 1 1 25 18 0 4 3 14 10 Mar-15 35 20 13 22.7 16.9 14.0 12.4 98 105 1.3 8.7 1.4 0.9 5.9 (2) Taiyo Yuden 6976 JP O JPY 1,924 2,300 20 1,844 26.6 (3) (3) 3 36 38 (2) (0) 5 25 30 Mar-15 37 17 11 22.5 16.4 14.1 12.7 95 97 0.8 9.5 1.5 1.0 4.9 10 Tokyo Electron 8035 JP N JPY 8,033 7,610 (5) 10,728 94.3 (1) (3) 5 (13) (7) 0 0 7 (23) (16) Mar-15 12 17 9 20.0 17.8 15.2 13.9 104 115 2.9 12.6 2.4 1.6 8.1 (44)

Toshiba 6502 JP O JPY 297.2 650.0 119 10,259 128.6 1 (3) (4) (42) (44) 2 (0) (2) (53) (52) Mar-14 162 65 11 24.8 9.5 5.7 5.1 nm 272 4.0 10.5 1.0 0.4 4.4 67 Wacom 6727 JP U JPY 468.0 400.0 (15) 627 4.5 (0) 1 (0) 0 5 1 4 2 (10) (4) Mar-15 (10) 16 21 22.5 25.0 21.4 17.8 102 105 3.8 9.1 2.3 0.8 9.5 (36) Yaskawa Electric Corporation

6506 JP O JPY 1,654 1,800 9 3,590 32.8 1 (0) 8 7 3 1 3 10 (4) (5) Mar-15 (5) 23 8 16.8 17.7 14.4 13.4 98 113 1.3 13.7 2.4 1.1 9.1 12

Yokogawa Electric Corporation

6841 JP N JPY 1,471 1,700 16 3,201 19.5 (1) (3) 0 10 1 0 (0) 2 (0) (7) Mar-15 64 2 7 22.0 13.4 13.2 12.3 114 115 1.5 12.8 1.6 0.9 6.9 (8)

Sector* 22 218,590 (1) (2) (0) 6 4 0 1 2 (4) (4) Mar-15 17 17 9 16.8 14.3 12.2 12.0 112 117 1.9 10.9 1.5 0.7 5.8 3

Telecommunication Services

Hitoshi Hayakawa - 81 3 4550 9952

Japan Communications Inc.

9424 JP U JPY 313.0 310.0 (1) 359 8.2 (3) (8) 13 (44) (46) (3) (5) 16 (55) (54) Mar-15 125 63 20 133.2 59.1 36.2 30.1 105 149 0.0 14.7 8.2 6.2 37.3 (40)

KDDI 9433 JP N JPY 2,966 3,000 1 65,051 159.1 (1) (4) (1) 16 14 0 (1) 1 6 6 Mar-15 17 5 5 17.4 14.8 14.1 13.5 98 95 2.2 15.8 2.2 1.9 6.1 17 NTT DoCoMo 9437 JP N JPY 2,362 2,100 (11) 74,738 124.2 (1) (2) (5) 34 25 0 0 (3) 23 17 Mar-15 18 13 10 23.3 19.6 17.4 15.8 94 96 3.0 8.7 1.6 1.9 6.1 (11)

Nippon Telegraph and Telephone

9432 JP O JPY 4,597 5,000 9 78,561 169.2 (1) (2) (4) 48 44 (0) 0 (2) 38 36 Mar-15 25 10 7 19.4 15.5 14.0 13.1 95 95 2.2 7.2 1.1 1.2 4.3 32

SoftBank Group Corp. 9984 JP O JPY 6,250 8,600 38 61,173 410.8 (1) (5) (10) (13) (17) (0) (2) (7) (24) (25) Mar-15 (12) 19 10 11.1 12.7 10.6 9.6 95 114 0.6 24.1 2.7 1.8 6.8 213

Sector* 8 279,882 (1) (3) (5) 23 19 (0) (1) (3) 13 10 Mar-15 10 12 8 16.9 15.5 13.8 12.8 95 100 2.1 11.2 1.7 1.6 5.6 49

Transportation Timothy Ross - 65 6212 3337

ANA Holdings 9202 JP O JPY 347.2 425.0 22 9,897 55.2 (1) (1) (8) 16 15 (0) 2 (5) 5 7 Mar-15 126 2 (10) 37.3 16.5 16.1 17.9 112 98 1.9 9.0 1.4 1.0 6.7 67 Japan Airlines 9201 JP O JPY 4,321 6,800 57 12,769 94.5 (2) 0 (7) 20 13 (1) 3 (5) 10 5 Mar-15 12 9 (11) 9.8 8.8 8.0 9.1 102 104 2.8 21.1 1.7 1.0 4.1 (29) Kawasaki Kisen Kaisha Ltd.

9107 JP U JPY 240.0 250.0 4 1,834 41.3 0 (4) (5) (26) (23) 1 (1) (3) (37) (31) Mar-15 (53) 78 8 10.4 21.8 12.3 11.4 61 79 2.1 2.9 0.5 0.4 6.2 50

Mitsui O.S.K. Lines Ltd 9104 JP U JPY 305.0 270.0 (11) 2,974 45.0 0 (5) (7) (15) (19) 1 (2) (5) (26) (28) Mar-15 (60) 106 31 8.6 21.7 10.6 8.1 66 89 1.6 2.1 0.5 0.8 14.3 120 Nippon Yusen Kabushiki Kaisha

9101 JP O JPY 303.0 350.0 16 4,189 49.5 (0) (4) (9) (11) (13) 1 (2) (7) (22) (21) Mar-15 3 (4) (4) 10.8 10.5 10.9 11.4 100 90 2.6 5.9 0.6 0.5 6.9 79

Sector* 31 31,663 (1) (1) (7) 9 5 (0) 1 (5) (2) (3) Mar-15 8 13 (5) 12.8 11.8 10.5 11.1 99 98 2.4 8.9 1.0 0.7 6.7 57

Country Average* TPX 1,556 1,785 15 2,966,309 (1) (3) (2) 11 8 Mar-15 14 11 8 16.6 14.6 13.1 11.7 99 101 2.1 9.2 1.3 1.0 8.1 35

Note: Prices are as of 18 September 2015, * Country/ sector aggregates are for the coverage above. Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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South Korea—valuation summary Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Automobiles & Components

Michael Sohn - 82 2 3707 3739

HMC 005380 KS N KRW 151,500 150,000 (1) 28,351 81.9 1 (0) (8) (10) (17) 1 3 (4) (12) (15) Dec-14 (10) 4 4 5.9 6.6 6.3 6.1 89 87 2.6 10.9 0.7 0.3 2.5 (14) Hankook Tire 161390 KS O KRW 45,400 55,000 21 4,778 11.2 (2) (5) (9) (14) (16) (2) (2) (5) (16) (15) Dec-14 (9) 8 7 8.0 8.8 8.2 7.7 100 98 1.0 13.2 1.1 1.3 6.1 51

Kia 000270 KS O KRW 53,300 61,000 14 18,355 45.1 0 (4) (8) 2 (6) 0 (1) (4) 0 (5) Dec-14 (5) 12 7 7.2 7.6 6.8 6.4 96 96 2.3 12.0 0.9 0.4 5.3 (3) Kumho Tire 073240 KS U KRW 6,590 5,000 (24) 885 3.8 (1) (1) (4) (32) (38) (1) 2 0 (34) (37) Dec-14 (104) nm 10 7.7 nm 14.3 12.9 nm 63 0.0 (0.4) 0.9 1.2 9.7 193 Mando 204320 KS O KRW 173,000 193,000 12 1,380 8.7 1 5 14 (6) (11) 1 8 18 (7) (9) Dec-14 (72) 32 13 3.4 12.1 9.2 8.1 92 99 2.8 11.8 1.3 0.5 6.0 83

Mobis 012330 KS O KRW 231,000 280,000 21 19,103 36.7 (2) (6) (9) (2) (6) (2) (2) (5) (4) (5) Dec-14 (9) 10 6 6.6 7.2 6.6 6.2 99 99 1.7 12.7 0.9 0.5 4.8 (23) Nexen Tire 002350 KS N KRW 12,350 16,200 31 1,012 3.5 (1) (1) (7) (3) (11) (1) 2 (3) (5) (9) Dec-14 1 5 3 9.8 9.8 9.3 9.0 98 88 0.5 13.2 1.2 1.2 6.9 104 Wia 011210 KS O KRW 117,500 150,000 28 2,715 17.4 2 (4) (13) (33) (32) 2 (1) (9) (35) (31) Dec-14 (4) 5 11 7.0 7.3 7.0 6.3 101 98 0.8 14.3 1.0 0.5 5.1 12

Sector* 11 76,578 (0) (3) (8) (6) (12) (0) 0 (4) (8) (11) Dec-14 (12) 9 6 6.4 7.3 6.7 6.3 94 93 2.1 11.6 0.8 0.4 4.1 (7)

Banks Gil Kim - 82 2 3707 3763

BNK Financial Group 138930 KS O KRW 8,350 14,897 78 2,312 10.3 (3) (7) (37) (40) (44) (3) (4) (34) (42) (43) Dec-14 (39) (4) 5 2.5 4.2 4.4 4.1 98 103 2.3 11.6 0.4 na na na DGB Financial 139130 KS N KRW 10,050 12,500 24 1,443 3.6 (0) (4) (7) (11) (17) (0) (1) (3) (13) (15) Dec-14 1 5 6 5.9 5.8 5.5 5.2 93 101 3.5 9.6 0.5 na na na IBK 024110 KS N KRW 13,150 15,000 14 6,216 12.7 1 (1) (6) (7) (11) 1 2 (2) (8) (10) Dec-14 5 17 4 7.9 7.6 6.5 6.2 94 103 3.8 8.1 0.5 na na na

KB Financial 105560 KS R KRW 34,300 11,258 26.1 (0) (2) (7) (5) (12) (0) 1 (3) (7) (11) Dec-14 20 27 9 9.6 8.0 6.3 5.8 100 128 2.9 6.5 0.5 na na na SFG 055550 KS O KRW 40,050 60,000 50 16,134 29.5 (0) (4) (9) (10) (18) (0) (1) (5) (12) (17) Dec-14 11 13 8 9.7 8.8 7.8 7.2 97 110 2.9 8.6 0.7 na na na Sector* 42 37,364 (0) (3) (10) (10) (17) (0) (0) (6) (12) (15) Dec-14 2 15 7 7.8 7.7 6.7 6.2 97 113 3.0 8.0 0.6 na na na

Building Materials & Construction

Hayoung Chung / Minseok Sinn - 822 3707 3795 / 82 2 3707 8898

KCC 002380 KS O KRW 445,000 570,000 28 3,977 13.2 (1) (3) (0) (14) (14) (1) (0) 4 (16) (12) Dec-14 (57) 83 13 13.4 31.2 17.1 15.2 76 105 2.0 2.2 0.7 1.5 11.7 11 LG Hausys 108670 KS O KRW 159,500 210,000 32 1,215 8.7 0 (6) (1) (2) 12 0 (3) 3 (3) 13 Dec-14 67 14 12 25.0 15.0 13.1 11.7 108 98 1.6 12.1 1.7 0.7 8.1 81 Sector* 29 5,192 (0) (4) (0) (11) (8) (0) (1) 3 (13) (6) Dec-14 (40) 56 13 15.0 24.9 16.0 14.2 86 103 1.9 3.5 0.8 1.2 10.4 20

Capital Goods Henry Kwon / Minseok Sinn - 82 2 3707 3732 / 82 2 3707 8898

DHI 034020 KS O KRW 23,850 27,600 16 2,151 7.9 3 (3) 19 1 (8) 3 (0) 23 (1) (7) Dec-14 nm nm 169 nm nm 154.6 57.6 57 15 0.0 (10.7) 0.6 0.8 10.6 135

Daelim Industrial 000210 KS N KRW 65,000 78,000 20 1,922 14.8 (4) (9) (12) (1) (3) (4) (6) (9) (3) (2) Dec-14 nm (0) 7 nm 9.9 9.9 9.3 98 75 0.8 5.9 0.6 0.3 8.8 16 Daewoo E&C 047040 KS N KRW 5,960 7,200 21 2,104 5.4 (2) (5) (4) 1 (2) (2) (2) (0) (1) (1) Dec-14 90 31 39 23.6 12.4 9.5 6.8 100 93 0.0 7.3 0.9 0.5 10.4 74 GS E&C 006360 KS N KRW 20,400 25,000 23 1,230 12.1 (3) (7) (8) (12) (21) (3) (4) (4) (14) (20) Dec-14 nm 108 52 nm 23.1 11.1 7.3 68 70 0.0 1.9 0.4 0.3 17.0 41

Hyundai Dev 012630 KS O KRW 37,000 70,000 89 2,370 24.7 1 (8) (11) (4) 9 1 (5) (7) (6) 10 Dec-14 248 29 25 39.6 11.4 8.8 7.1 110 105 1.4 10.5 1.2 0.8 9.5 37 Hyundai E&C 000720 KS O KRW 29,650 45,000 52 2,805 22.9 (2) (7) (9) (30) (32) (2) (4) (5) (31) (31) Dec-14 4 26 7 7.9 7.6 6.0 5.7 98 100 1.7 7.7 0.6 0.2 2.9 (1) Hyundai Heavy 009540 KS O KRW 89,800 157,100 75 5,798 23.5 0 (1) (6) (22) (28) 0 2 (2) (24) (27) Dec-14 nm nm 39 nm nm 30.9 22.3 91 72 8.4 (5.1) 0.5 0.5 87.3 92

Hyundai Mipo 010620 KS O KRW 57,700 90,100 56 980 8.7 2 (9) (15) (17) (20) 3 (6) (11) (19) (19) Dec-14 nm 30 (2) nm 17.3 13.3 13.5 102 80 0.0 3.6 0.6 1.0 27.9 127 Samsung Heavy 010140 KS O KRW 10,650 17,300 62 2,089 24.9 (1) (8) (14) (47) (49) (1) (5) (11) (48) (48) Dec-14 nm nm (12) 14.6 nm 25.2 28.6 71 71 2.3 (24.3) 0.5 0.6 nm 89 Sector* 52 22,790 (1) (6) (7) (19) (22) (1) (2) (3) (21) (21) Dec-14 na na 21 nm nm 13.2 11.0 52 84 2.9 (3.0) 0.6 0.5 21.2 71

Chemicals A-Hyung Cho / Kenneth Whee - 82 2 3707 3735 / 852 2101 7319

Hanwha Chem 009830 KS N KRW 26,400 21,000 (20) 3,632 27.2 2 (1) 19 124 102 2 2 23 122 103 Dec-14 nm 4 8 373.6 17.0 16.3 15.1 127 83 0.6 5.1 0.9 0.9 10.6 96

LG Chem 051910 KS R KRW 315,000 17,735 52.8 3 (0) 6 74 59 3 3 10 72 60 Dec-14 58 19 12 24.1 15.3 12.9 11.5 112 108 1.3 10.7 1.5 1.0 7.4 8 Sector* 41 29,836 2 (1) 6 70 54 2 2 10 68 56 Dec-14 184 19 12 34.5 12.1 10.2 9.2 106 115 1.0 10.5 1.2 0.9 6.5 28

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South Korea—valuation summary (continued) Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Consumer Durables & Apparel

Eric Yoo / Minseok Sinn - 82 2 3707 3761 / 82 2 3707 8898

Cuckoo 192400 KS O KRW 226,000 296,000 31 1,882 5.0 (2) (2) (3) 27 16 (2) 1 1 25 17 Dec-14 (12) 35 16 20.3 23.0 17.0 14.6 106 117 0.6 14.6 3.8 3.2 16.4 (11) Hanssem 009240 KS N KRW 222,500 260,000 17 4,448 19.4 (2) (8) 3 94 93 (2) (5) 7 93 94 Dec-14 29 24 32 46.4 35.9 28.9 22.0 108 103 0.6 29.0 9.3 3.0 33.2 (36)

Sector* 21 6,331 (2) (6) 1 74 70 (2) (3) 5 73 71 Dec-14 9 29 25 33.6 30.8 23.9 19.1 107 108 0.6 20.5 6.5 3.1 25.4 (23)

Consumer Staples A-Hyung Cho / Hayoung Chung - 82 2 3707 3735 / 822 3707 3795

Amorepacific 090430 KS O KRW 409,000 440,000 8 20,312 61.8 1 (4) 8 84 77 2 (1) 12 83 78 Dec-14 58 32 22 63.1 39.9 30.2 24.8 109 113 0.2 18.9 7.0 4.9 25.0 (20) CJCJ 097950 KS O KRW 348,500 550,000 58 3,896 16.0 (0) (3) 1 14 7 (0) (0) 5 12 8 Dec-14 216 34 18 48.4 15.3 11.4 9.7 113 110 0.9 9.6 1.4 0.8 8.1 100 Hyundai Green Food 005440 KS O KRW 23,950 28,000 17 1,988 7.6 0 (5) 2 26 35 0 (2) 6 25 36 Dec-14 9 20 13 21.4 19.6 16.4 14.5 110 115 0.3 7.5 1.4 1.0 18.4 (15)

KT&G 033780 KS N KRW 105,500 100,000 (5) 12,305 24.7 0 (1) (5) 39 27 0 2 (1) 37 28 Dec-14 14 (10) 4 16.1 14.1 15.6 15.0 96 94 3.3 16.1 2.4 3.2 9.1 (4) LG H&H 051900 KS O KRW 1,000,000 1,080,000 8 13,268 37.7 0 (4) 10 61 63 0 (1) 14 59 65 Dec-14 37 28 14 49.0 35.7 27.8 24.3 97 102 0.5 23.8 7.7 3.0 19.6 24 Orion 001800 KS O KRW 1,135,000 1,340,000 18 5,762 15.9 (1) 1 11 12 17 (1) 4 14 10 18 Dec-14 2 22 29 34.6 33.8 27.6 21.4 76 99 0.6 15.0 4.7 3.2 15.6 46

Sector* 10 57,532 0 (3) 5 55 51 0 0 9 53 52 Dec-14 35 14 15 33.9 25.2 22.0 19.2 99 103 1.0 15.6 3.8 2.3 14.2 27

Diversified Financials Gil Kim - 82 2 3707 3763

HFG 086790 KS O KRW 24,050 43,000 79 6,048 21.0 (0) (6) (12) (25) (27) (0) (2) (9) (27) (25) Dec-14 17 34 7 7.4 6.4 4.8 4.5 103 126 3.1 5.8 0.4 na na na

Energy Kenneth Whee - 852 2101 7319

GS Holdings 078930 KS N KRW 49,450 58,000 17 3,903 9.3 (1) (3) (5) 24 21 (1) (0) (1) 22 22 Dec-14 nm 0 5 nm 12.4 12.4 11.8 71 69 2.0 5.8 0.7 0.9 14.7 80 S-Oil 010950 KS O KRW 75,500 93,000 23 7,221 19.2 (1) 1 12 56 66 (1) 4 16 54 67 Dec-14 nm (0) 20 nm 10.9 10.9 9.1 97 97 3.3 14.8 1.5 0.6 7.2 32

SK Innovation 096770 KS O KRW 126,000 156,000 24 9,898 36.6 (1) (1) 9 48 49 (1) 2 12 46 51 Dec-14 nm 22 1 nm 10.5 8.6 8.6 90 111 2.5 7.1 0.7 0.4 6.6 41 Sector* 22 21,022 (1) (1) 7 46 50 (1) 2 11 45 51 Dec-14 na 11 7 nm 10.9 9.9 9.2 88 98 2.7 8.3 0.9 0.5 7.9 48

Hotels, Restaurants & Leisure

Hayoung Chung / A-Hyung Cho / Ray Kim - 822 3707 3795 / 82 2 3707 3735 / 82 2 3707 3776

GKL 114090 KS N KRW 24,350 33,000 36 1,280 12.8 1 (3) (22) (24) (30) 1 0 (18) (26) (29) Dec-14 (12) 12 7 12.9 14.7 13.1 12.3 100 99 3.6 23.4 3.4 2.5 9.0 (38)

Hana Tour 039130 KS O KRW 112,000 170,000 52 1,105 15.7 0 (7) (16) 44 46 0 (4) (12) 42 47 Dec-14 28 29 16 35.9 28.1 21.7 18.8 111 100 1.2 19.5 5.1 2.4 19.5 (108) Hotel Shilla 008770 KS N KRW 86,600 118,000 36 2,888 40.9 (3) (6) (21) (5) (1) (3) (3) (17) (7) 0 Dec-14 34 167 23 65.9 49.2 18.4 15.0 116 105 0.6 9.2 4.3 1.2 23.4 82 Kangwon Land 035250 KS O KRW 39,550 54,000 37 7,188 14.2 (1) (1) (7) 30 24 (1) 2 (4) 28 25 Dec-14 22 14 12 22.3 18.3 16.0 14.3 100 101 2.7 15.5 2.9 5.0 11.8 (10)

Paradise 034230 KS U KRW 17,600 17,000 (3) 1,360 17.3 (4) (12) (23) (25) (31) (3) (8) (22) (48) (53) Dec-14 (25) (4) 16 15.0 20.0 20.8 17.9 95 81 2.9 7.6 1.7 2.5 16.5 (7) Sector* 34 13,820 (1) (4) (14) 13 10 (1) (1) (10) 12 11 Dec-14 10 27 14 23.6 21.4 16.8 14.8 102 100 2.2 13.9 3.0 2.5 13.9 (3)

Insurance Gil Kim - 82 2 3707 3763

DBI 005830 KS N KRW 65,700 67,000 2 3,952 10.6 3 3 0 19 23 3 6 4 18 24 Dec-14 5 13 9 11.5 11.0 9.7 8.9 91 92 2.2 12.1 1.1 na na na HLI 088350 KS N KRW 7,570 8,000 6 5,586 4.4 3 0 (9) (9) (5) 3 3 (5) (10) (4) Dec-14 44 3 18 15.8 11.0 10.7 9.1 102 101 2.6 6.7 0.7 na na na

HMF 001450 KS N KRW 33,100 34,000 3 2,514 8.0 2 (1) (5) 27 29 2 2 (1) 26 30 Dec-14 19 5 11 11.4 9.6 9.2 8.2 104 92 2.7 11.4 1.0 na na na SFM 000810 KS O KRW 308,500 377,000 22 12,416 21.7 1 (1) (5) 9 0 1 2 (1) 7 2 Dec-14 9 26 13 16.3 15.0 11.9 10.5 102 109 1.9 8.7 1.2 na na na SLI 032830 KS O KRW 103,500 135,000 30 17,586 22.1 0 (2) (8) (11) (18) 0 1 (4) (13) (17) Dec-14 (14) 9 11 14.6 17.0 15.6 14.1 90 94 1.4 4.8 0.8 na na na

Sector* 20 42,053 1 (1) (6) 0 (4) 1 2 (2) (1) (3) Dec-14 4 13 12 14.6 14.0 12.4 11.1 96 99 1.9 6.8 0.9 na na na

Media JungIl Lee / Ray Kim - 822 3707 3796 / 82 2 3707 3776

CJ CGV 079160 KS O KRW 122,500 144,000 18 2,202 15.9 (0) (2) 8 127 133 (0) 1 12 125 134 Dec-14 220 51 28 155.8 48.6 32.2 25.2 96 116 0.3 13.0 5.9 2.5 18.8 98 Cheil Worldwide 030000 KS N KRW 21,200 19,000 (10) 2,072 7.5 (1) (2) 6 23 11 (1) 1 10 22 12 Dec-14 5 5 5 21.7 20.7 19.7 18.8 110 101 0.0 11.5 2.3 0.8 13.3 (20) Sector* 4 4,274 (1) (2) 7 77 74 (1) 1 11 75 75 Dec-14 33 19 14 38.9 29.4 24.6 21.6 105 106 0.1 12.0 3.3 1.3 16.0 17

Metals & Mining Minseok Sinn - 82 2 3707 8898

Hyundai Steel 004020 KS O KRW 50,800 70,000 38 5,759 19.4 1 (4) (1) (20) (21) 1 (1) 3 (22) (20) Dec-14 (17) 44 9 7.7 9.3 6.5 6.0 86 102 1.4 5.0 0.5 1.1 6.0 68

POSCO 005490 KS O KRW 166,000 240,000 45 12,295 47.0 (0) (5) (7) (40) (44) (0) (2) (3) (41) (43) Dec-14 (118) nm 12 21.2 nm 9.7 8.6 nm 112 4.8 (0.3) 0.3 0.6 6.1 46 Sector* 42 18,055 (0) (4) (5) (33) (37) 0 (1) (1) (35) (36) Dec-14 (61) 318 11 13.6 34.9 8.4 7.5 62 108 3.7 1.1 0.4 0.7 6.1 52

Retailing A-Hyung Cho - 82 2 3707 3735

E-Mart 139480 KS O KRW 196,500 260,000 32 4,653 13.9 (2) (8) (9) (3) (11) (1) (5) (6) (5) (10) Dec-14 109 (24) 13 18.9 9.0 12.0 10.6 117 105 0.8 8.4 0.7 0.6 9.5 53 GS Home Shopping 028150 KS N KRW 167,000 200,000 20 931 2.7 (1) (1) 3 (25) (21) (0) 3 4 (47) (43) Dec-14 (22) 19 4 9.1 11.6 9.7 9.3 96 102 4.2 10.5 1.2 0.1 1.6 (98)

Lotte Shopping 023530 KS N KRW 231,500 240,000 4 6,193 21.1 3 0 6 (15) (18) 3 3 10 (17) (17) Dec-14 (23) 45 6 13.8 18.0 12.5 11.8 91 96 1.1 2.3 0.4 0.6 10.0 64 Shinsegae 004170 KS O KRW 240,500 330,000 37 2,012 19.8 1 (6) 1 33 23 2 (2) 5 31 24 Dec-14 153 (52) 21 15.1 6.0 12.4 10.3 104 99 0.5 13.9 0.8 0.8 9.8 45 Sector* 19 18,394 1 (3) (1) (6) (10) 1 0 2 (8) (9) Dec-14 29 (2) 11 13.5 10.5 10.7 10.3 107 105 1.0 6.0 0.6 0.6 8.3 45

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South Korea—valuation summary (continued) Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Software & Services JungIl Lee / Minseok Sinn - 822 3707 3796 / 82 2 3707 8898

CJ E&M 130960 KS O KRW 87,300 97,000 11 2,873 25.2 4 4 5 129 149 5 7 6 106 128 Dec-14 nm (40) 33 nm 22.5 37.6 28.2 107 92 0.0 9.7 2.0 2.3 8.4 (16) Daum 035720 KS N KRW 116,100 120,000 3 5,927 65.9 (1) (3) 1 (6) (14) (0) 1 2 (28) (35) Dec-14 (12) 54 34 46.6 52.9 34.3 25.6 131 125 0.2 5.3 2.5 6.5 39.1 (25) NC Soft 036570 KS N KRW 208,500 220,000 6 3,884 31.9 (6) (3) (1) 15 23 (6) (0) 3 13 25 Dec-14 (8) 23 19 18.8 20.5 16.7 14.1 108 98 1.6 15.1 2.9 4.4 12.6 (45)

NHN Entertainment 181710 KS U KRW 58,100 46,000 (21) 966 13.6 (2) (2) 3 (31) (26) (2) 1 7 (33) (24) Dec-14 93 (82) 112 17.5 9.1 50.6 23.9 131 nm 0.0 11.5 1.0 1.3 nm (28) Naver 035420 KS O KRW 612,000 800,000 31 17,138 53.7 (0) (4) (3) (14) (16) (0) (1) 0 (16) (15) Dec-14 32 34 38 46.8 35.4 26.4 19.2 103 103 0.3 27.6 8.7 6.4 22.5 (3) Samsung SDS 018260 KS U KRW 264,000 200,000 (24) 17,354 23.2 (1) (0) 5 (10) (18) (1) 3 8 (12) (17) Dec-14 6 15 17 49.5 46.7 40.6 34.8 98 98 0.2 10.1 4.5 2.3 18.4 (38)

Sector* 3 48,142 (1) (2) 1 (1) (3) (1) 1 5 (3) (2) Dec-14 32 13 30 45.9 34.6 30.5 23.6 106 104 0.3 12.6 4.1 3.5 19.3 (27)

Technology Hardware Keon Han / Eric Yoo - 82 2 3707 3740 / 82 2 3707 3761

LG Display 034220 KS N KRW 25,200 25,600 2 7,660 34.7 (1) 1 17 (25) (28) (1) 4 20 (27) (27) Dec-14 26 (26) (7) 10.1 8.0 10.8 11.6 96 108 2.0 9.4 0.7 0.4 1.9 8 LG Electronics 066570 KS N KRW 52,300 46,200 (12) 7,271 41.8 1 (3) 3 (12) (16) 1 0 7 (13) (15) Dec-14 (41) 25 56 12.6 21.4 17.1 11.0 101 73 0.9 3.0 0.6 0.3 9.7 51 S-1 012750 KS N KRW 93,500 91,000 (3) 3,018 5.9 (1) (1) (1) 31 25 (1) 2 3 30 26 Dec-14 49 (9) 9 29.9 20.0 22.0 20.2 105 98 1.8 18.0 3.4 1.9 9.8 (4)

SDI 006400 KS N KRW 124,500 91,000 (27) 7,273 37.6 4 4 13 7 1 4 7 17 6 2 Dec-14 174 18 12 71.5 26.1 22.2 19.9 109 104 0.8 3.2 0.8 1.2 9.4 5 SEC 005930 KS O KRW 1,263,000 1,785,000 41 158,049 251.8 0 (3) (6) (5) (6) 0 0 (2) (7) (5) Dec-14 (5) 21 19 8.0 8.4 6.9 5.8 110 128 2.0 11.9 1.0 0.9 3.6 (3) SEMCO 009150 KS O KRW 67,900 80,000 18 4,309 22.8 2 0 7 24 12 2 3 11 22 13 Dec-14 (59) 62 14 10.0 24.1 14.9 13.1 182 124 1.1 4.5 1.1 0.8 4.0 12

SK Hynix 000660 KS O KRW 30,250 49,000 62 18,709 121.6 0 (3) (3) (37) (39) 0 (0) 1 (38) (38) Dec-14 9 0 15 5.2 4.8 4.8 4.2 103 124 1.0 21.9 1.0 1.1 2.2 (7) SSC 046890 KS N KRW 15,650 16,800 7 775 11.7 (1) (8) (20) (23) (18) 0 (5) (19) (45) (39) Dec-14 nm 35 3 nm 24.6 18.2 17.7 175 161 0.8 5.7 1.4 1.1 8.2 36 Suprema 094840 KS O KRW 18,150 24,500 35 227 1.1 3 2 (4) (29) (33) 3 5 (3) (51) (55) Dec-14 9 39 7 18.8 17.2 12.4 11.6 100 100 0.0 10.1 1.6 3.7 9.1 (28)

Sector* 36 207,291 0 (2) (4) (7) (9) 0 1 0 (9) (8) Dec-14 (3) 16 18 8.2 8.4 7.2 6.1 109 125 1.8 11.6 0.9 0.8 3.6 1

Telecommunication Services

JungIl Lee - 822 3707 3796

KT 030200 KS O KRW 29,200 37,000 27 6,477 20.9 0 (2) 1 (7) (9) 0 1 5 (8) (7) Dec-14 nm 3 7 nm 9.9 9.6 9.1 100 121 1.7 6.9 0.7 0.8 3.7 84 LG Uplus 032640 KS O KRW 10,100 13,000 29 3,746 16.7 0 (3) (8) (12) (9) 1 (0) (4) (14) (7) Dec-14 64 23 19 19.2 11.7 9.5 7.9 95 105 2.7 8.7 1.0 0.9 4.1 121

Sector* 27 25,932 (1) (2) (1) (12) (15) (1) 1 3 (14) (13) Dec-14 180 13 5 25.6 9.1 8.1 7.7 114 121 3.5 10.0 1.0 1.0 4.1 54

Transportation Timothy Ross - 65 6212 3337

Asiana Airlines 020560 KS O KRW 4,335 5,500 27 719 8.8 0 (2) (10) (39) (28) 0 1 (6) (41) (26) Dec-14 22 63 (10) 10.3 8.5 5.2 5.8 nm 283 0.0 10.2 0.9 1.6 15.1 394 Korean Airlines 003490 KS N KRW 27,200 32,000 18 1,683 16.6 0 (2) (10) (40) (41) 0 1 (7) (41) (40) Dec-14 nm 40 (5) nm 6.2 4.5 4.7 nm 159 0.0 15.9 1.3 1.5 7.6 879 Sector* 20 2,402 0 (2) (10) (40) (37) 0 1 (7) (41) (36) Dec-14 na 45 (7) nm 6.8 4.6 5.0 nm 180 0.0 13.9 1.1 1.5 9.1 686

Utilities A-Hyung Cho - 82 2 3707 3735

KEPCO 015760 KS O KRW 49,650 64,000 29 27,078 40.1 3 2 (6) 16 8 3 5 (2) 15 9 Dec-14 148 (58) 2 6.6 2.7 6.3 6.2 97 86 3.0 20.2 0.5 1.4 4.6 73

Country Average* KOSPI 1,948 2,470 27 712,174 (0) (3) (4) 2 (1) Dec-14 21 11 13 12.6 10.4 9.3 8.3 92 108 1.8 9.6 0.9 0.8 5.7 25

Note: Prices are as of 9 December 2015

* Country/ sector aggregates are for the coverage above

Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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Malaysia—valuation summary Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Banks Danny Goh - 60 3 2723 2083

Alliance Financial Group AFG MK O MYR 3.65 3.97 9 1,326 1.1 0 1 (1) (22) (23) 0 2 1 (17) (19) Mar-15 0 4 8 10.6 10.6 10.3 9.5 101 98 4.7 11.5 1.2 na na na CIMB Group CIMB MK U MYR 4.51 4.06 (10) 9,026 11.7 0 (0) (3) (19) (17) 0 0 (2) (13) (12) Dec-14 0 20 15 11.7 11.7 9.7 8.5 100 96 3.4 8.4 1.0 na na na Hong Leong Bank HLBK MK N MYR 13.14 13.10 (0) 6,685 3.4 0 (1) (3) (3) (5) 0 (1) (2) 3 (1) Jun-15 (12) 2 11 11.4 13.0 12.8 11.5 96 91 3.0 11.2 1.3 na na na

Maybank MAY MK U MYR 8.41 6.80 (19) 19,267 22.6 0 0 0 (8) (5) 0 1 2 (3) (1) Dec-14 (8) (3) 7 11.7 12.7 13.1 12.3 94 89 6.0 11.6 1.4 na na na Public Bank PBK MK U MYR 18.32 16.50 (10) 16,691 23.7 0 (0) 1 0 1 0 1 2 6 6 Dec-14 6 (2) 9 15.7 14.9 15.3 14.0 101 94 3.1 16.3 2.3 na na na Sector* (12) 57,405 0 (0) (1) (8) (7) 0 1 1 (2) (2) Dec-14 (3) 3 9 12.1 12.5 12.1 11.2 99 95 4.2 11.6 1.4 na na na

Capital Goods Danny Goh / Gerald Wong - 60 3 2723 2083 / 65 6212 3037

Gamuda GAM MK O MYR 4.67 6.00 28 2,637 4.3 0 4 2 (7) (7) 0 5 3 (1) (2) Jul-15 (3) 37 8 15.8 16.2 11.8 11.0 105 127 2.6 10.1 1.4 2.9 20.2 32

IJM Corporation IJM MK O MYR 3.42 3.75 10 2,868 5.0 0 2 4 4 4 0 3 5 10 8 Mar-15 (49) 26 20 10.7 20.7 16.5 13.7 86 95 1.9 6.1 1.1 2.7 11.6 29 MMHE MMHE MK U MYR 0.99 1.00 1 370 0.3 0 (8) (12) (45) (40) 0 (7) (11) (39) (36) Dec-14 (30) (9) 3 12.1 17.4 19.1 18.6 89 77 0.0 3.4 0.6 0.5 7.1 (15) Sector* 18 5,875 0 2 2 (4) (4) 0 3 3 2 1 Dec-14 (31) 4 21 11.3 16.4 15.8 13.0 106 102 2.4 7.4 1.1 2.5 13.4 28

Chemicals Paworamon (Poom) Suvarnatemee - 66 2 614 6210

Petronas Chem PCHEM MK N MYR 6.72 6.00 (11) 12,617 7.8 0 (1) 3 23 31 0 (0) 4 29 35 Dec-14 8 3 30 19.7 18.2 17.8 13.7 108 98 2.7 12.5 2.2 3.1 8.6 (38)

Consumer Staples Tingmin Tan - 60 3 2723 2080

Genting Plantations GENP MK O MYR 10.08 11.50 14 1,844 1.1 0 1 (3) 1 1 0 1 (2) 7 6 Dec-14 (43) 55 17 20.3 35.3 22.8 19.5 96 98 0.6 5.5 1.9 5.6 21.9 6 IOI Corp IOI MK N MYR 4.22 3.96 (6) 6,399 4.7 0 (0) (3) (12) (8) 0 1 (1) (7) (4) Jun-15 32 14 10 30.2 22.8 20.0 18.2 113 112 2.6 22.5 4.9 2.7 16.3 80 KLK KLK MK N MYR 22.76 21.80 (4) 5,702 3.8 0 1 (3) (0) 6 0 1 (1) 5 11 Sep-15 4 39 1 27.9 26.8 19.3 19.1 86 105 2.2 9.2 2.4 2.9 17.9 40

Sime Darby SIME MK N MYR 7.71 7.40 (4) 11,239 7.9 0 (3) (7) (16) (16) 0 (2) (6) (11) (12) Jun-15 (2) 18 3 20.7 21.1 17.8 17.3 106 99 3.2 7.2 1.5 1.4 12.2 33 Sector* (3) 26,623 0 (1) (5) (11) (10) 0 (0) (4) (5) (5) Dec-14 (17) 14 17 20.2 24.2 21.2 18.1 114 101 2.5 8.5 2.0 1.6 14.7 47

Diversified Financials Arjan van Veen / Danny Goh - 852 2101 7508 / 60 3 2723 2083

Bursa BURSA MK N MYR 8.30 8.85 7 1,041 1.2 0 (1) (2) 2 4 0 0 (0) 8 8 Dec-14 3 15 12 22.3 21.7 18.8 16.8 102 109 4.2 27.1 5.9 na na na HLFG HLFG MK O MYR 13.80 17.70 28 3,716 0.9 0 0 (2) (15) (14) 0 1 (1) (9) (10) Jun-15 (9) 3 12 9.0 9.8 9.6 8.5 93 88 3.0 11.3 1.0 na na na

Sector* 24 4,758 0 (0) (2) (11) (10) 0 1 (1) (6) (6) Dec-14 (7) (1) 8 10.0 10.7 10.8 10.0 98 92 3.2 13.0 1.3 na na na

Energy Muzhafar Mukhtar - 60 3 2723 2084

Bumi Armada BAB MK N MYR 1.04 1.05 1 1,432 3.3 0 (3) (6) (5) (2) 0 (2) (5) 1 2 Dec-14 (33) 150 28 15.6 23.1 9.2 7.2 92 163 0.0 4.1 0.9 5.7 12.6 107 Dialog DLG MK O MYR 1.59 1.90 19 1,937 2.5 0 0 (2) 6 19 0 1 (0) 12 23 Jun-15 25 13 2 31.4 25.2 22.2 21.9 111 114 1.6 15.8 3.7 2.5 21.2 7 Icon ICON MK N MYR 0.34 0.35 3 94 0.2 0 (1) (6) (54) (70) 0 (1) (4) (49) (66) Dec-14 (82) 92 47 3.0 17.0 8.9 6.0 54 66 0.6 2.2 0.4 3.6 7.9 48

SapuraKencana SAKP MK N MYR 2.10 1.90 (10) 2,953 5.7 0 (4) (5) (9) (14) 0 (3) (3) (4) (10) Jan-15 (23) (6) 3 10.1 13.0 13.8 13.4 93 81 0.8 10.5 1.2 3.3 10.4 166 Uzma UZMA MK O MYR 2.04 2.70 32 139 0.1 0 (2) (9) 19 21 0 (2) (8) 24 26 Dec-14 (1) 49 17 13.3 13.5 9.1 7.7 98 106 1.7 14.3 1.8 1.6 9.8 70 Sector* 2 6,555 0 (3) (4) (4) (2) 0 (2) (3) 2 2 Dec-14 (21) 26 13 13.7 17.3 13.7 12.1 94 104 0.9 8.5 1.4 3.5 11.7 125

Healthcare Anand Swaminathan - 65 6212 3012

IHH Healthcare IHH MK O MYR 6.39 6.80 6 12,332 9.4 0 (1) (3) 33 33 0 0 (2) 38 37 Dec-14 48 22 21 69.4 46.9 38.4 31.8 118 116 0.5 5.6 2.6 6.2 24.4 14

KPJ KPJ MK N MYR 4.28 4.00 (7) 1,059 1.1 0 0 0 16 14 0 1 2 21 18 Dec-14 34 15 12 38.9 28.9 25.1 22.4 106 111 1.9 12.5 3.1 1.8 14.0 57 Sector* 5 13,391 0 (1) (3) 31 31 0 0 (1) 37 35 Dec-14 46 21 20 65.4 44.7 36.8 30.7 117 115 0.6 6.1 2.6 5.1 22.9 17

Hotels, Restaurants & Leisure

Danny Chan - 60 3 2723 2082

Genting Bhd GENT MK O MYR 7.20 10.30 43 6,325 5.7 0 0 (6) (19) (20) 0 1 (5) (13) (16) Dec-14 1 28 14 17.9 17.7 13.8 12.1 95 104 0.5 5.6 1.0 1.4 4.2 (3)

Genting Malaysia GENM MK N MYR 4.33 4.50 4 6,034 3.9 0 (0) (1) 6 5 0 1 0 12 9 Dec-14 (9) 5 18 18.1 19.9 19.0 16.1 102 91 1.2 7.4 1.5 2.9 10.5 (11) Sector* 24 12,359 0 (0) (4) (7) (8) 0 1 (2) (1) (4) Dec-14 (4) 18 16 18.0 18.7 16.0 13.8 98 98 0.8 6.3 1.2 1.8 5.9 (5)

Insurance Danny Goh - 60 3 2723 2083

Tune Ins TIH MK O MYR 1.35 2.35 74 238 0.5 0 (3) (8) (21) (21) 0 (2) (6) (15) (17) Dec-14 12 16 16 14.0 12.5 10.8 9.3 111 112 3.7 18.9 2.2 na na na

Media Danny Chan - 60 3 2723 2082

Astro ASTRO MK O MYR 2.86 3.70 29 3,494 2.8 0 (1) (0) (6) (14) 0 (1) 1 (0) (10) Jan-15 21 18 13 28.6 23.6 20.1 17.8 99 101 4.0 99.0 25.8 3.3 9.3 495

Telecommunication Services

Danny Chan - 60 3 2723 2082

Axiata AXIATA MK O MYR 6.09 7.55 24 12,600 12.1 0 (0) (1) (14) (8) 0 1 0 (8) (4) Dec-14 14 2 7 22.2 19.4 19.0 17.7 117 109 3.8 12.9 2.5 3.3 8.8 43 DiGi DIGI MK N MYR 5.10 5.70 12 9,306 13.8 0 1 (2) (17) (16) 0 2 (1) (12) (11) Dec-14 (8) 4 8 19.5 21.3 20.4 19.0 99 99 4.7 267.9 56.3 5.6 12.9 100

Maxis MAXIS MK N MYR 6.61 6.45 (2) 11,650 5.6 0 (1) 1 (4) (0) 0 0 2 2 4 Dec-14 11 (6) 3 28.9 26.1 27.7 26.8 101 89 4.0 43.3 10.9 6.8 13.5 162 TM T MK N MYR 6.60 7.00 6 5,821 10.3 0 1 0 (4) (4) 0 1 2 2 (0) Dec-14 (4) 15 7 25.1 26.2 22.9 21.4 107 112 3.5 11.8 3.1 2.3 7.6 41 Sector* 11 39,377 0 0 (1) (10) (7) 0 1 1 (5) (3) Dec-14 4 2 6 23.4 22.4 21.9 20.6 107 102 4.0 21.9 4.8 4.0 10.3 58

Transportation Timothy Ross / Muzhafar Mukhtar - 65 6212 3337 / 60 3 2723 2084

AirAsia AIRA MK O MYR 1.38 1.90 38 901 11.9 0 (1) 1 (49) (50) 0 (1) 2 (44) (46) Dec-14 49 4 (6) 7.7 5.1 4.9 5.3 133 117 3.7 17.9 1.0 2.5 9.1 250

AirAsia X AAX MK O MYR 0.19 0.35 84 185 0.8 0 0 (7) (63) (66) 0 1 (6) (58) (61) Dec-14 nm nm 14 nm nm 6.7 5.9 490 nm 0.0 (6.3) 0.8 2.0 38.4 81 Malaysia Airports MAHB MK U MYR 5.65 4.80 (15) 2,200 1.7 0 1 8 (12) (13) 0 1 9 (7) (9) Dec-14 (35) 44 40 30.2 46.4 32.2 23.0 179 167 1.0 2.9 1.3 3.2 13.7 45 Westports WPRTS MK U MYR 4.13 3.75 (9) 3,305 4.4 0 (2) (4) 23 25 0 (1) (3) 28 29 Dec-14 (4) 25 21 27.5 28.6 22.8 18.9 96 102 2.6 27.0 7.5 9.5 17.4 42

Sector* (2) 6,592 0 (1) 0 (1) (0) 0 (0) 2 4 4 Dec-14 108 31 12 42.4 20.4 15.5 13.9 158 130 2.1 10.1 2.0 3.3 13.8 102

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Malaysia—valuation summary (continued) Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Utilities Muzhafar Mukhtar - 60 3 2723 2084

Malakoff MLK MK O MYR 1.60 2.00 25 1,877 1.8 0 0 (6) na na 0 1 (5) na na Dec-14 (23) 19 (26) 15.3 19.8 16.7 22.6 na na 4.4 8.2 1.3 3.6 8.3 193 Tenaga TNB MK N MYR 13.46 13.50 0 17,828 31.3 0 0 2 (2) (3) 0 1 4 3 2 Aug-15 6 1 (0) 11.2 10.6 10.5 10.6 108 103 2.1 13.0 1.3 2.1 6.6 33 Sector* 3 19,705 0 0 1 (2) (3) 0 1 3 3 2 Dec-14 8 5 (1) 12.4 11.5 11.0 11.1 101 106 2.3 12.8 1.4 2.3 7.2 51

Country Average* FBMKLCI 1,663 1,691 2 208,988 (0) (1) (1) (6) (4) Dec-14 (1) 7 10 16.5 16.7 15.7 14.2 103 100 3.0 11.2 1.8 2.6 10.4 37

Utilities Muzhafar Mukhtar - 60 3 2723 2084

Malakoff MLK MK O MYR 1.60 2.00 25 1,877 1.8 0 0 (6) na na 0 1 (5) na na Dec-14 (23) 19 (26) 15.3 19.8 16.7 22.6 na na 4.4 8.2 1.3 3.6 8.3 193 Tenaga TNB MK N MYR 13.46 13.50 0 17,828 31.3 0 0 2 (2) (3) 0 1 4 3 2 Aug-15 6 1 (0) 11.2 10.6 10.5 10.6 108 103 2.1 13.0 1.3 2.1 6.6 33

Sector* 3 19,705 0 0 1 (2) (3) 0 1 3 3 2 Dec-14 8 5 (1) 12.4 11.5 11.0 11.1 101 106 2.3 12.8 1.4 2.3 7.2 51

Country Average* FBMKLCI 1,663 1,691 2 208,988 (0) (1) (1) (6) (4) Dec-14 (1) 7 10 16.5 16.7 15.7 14.2 103 100 3.0 11.2 1.8 2.6 10.4 37

Note: Prices are as of 9 December 2015

* Country/ sector aggregates are for the coverage above

Source: Company data, Thomson Financial IBES, Credit Suisse estimates

Pakistan—valuation summary Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Banks Farhan Rizvi - 65 6212 3036

BAFL BAFL PA O PKR 29.19 38.00 30 449 0.3 0 1 1 (16) (7) (1) (1) 4 (19) (10) Dec-14 41 9 1 8.2 5.8 5.4 5.3 100 100 8.7 16.4 0.9 na na na HBL HBL PA O PKR 211.2 265.0 25 2,996 1.0 0 4 (0) (2) 1 (1) 2 4 (5) (2) Dec-14 13 6 17 9.8 8.6 8.2 7.0 107 112 6.5 20.0 1.7 na na na

MCB MCB PA O PKR 212.2 270.0 27 2,284 0.8 0 (1) (13) (31) (29) (1) (3) (9) (33) (31) Dec-14 7 6 7 9.4 8.8 8.3 7.8 102 106 7.1 18.5 1.4 na na na NBP NBP PA N PKR 54.39 56.00 3 1,119 0.3 0 0 (2) (22) (19) (1) (2) 2 (24) (22) Dec-14 (5) 8 5 7.5 7.9 7.3 7.0 103 103 9.7 8.2 0.6 na na na UBL UBL PA O PKR 152.7 218.0 43 1,808 1.6 0 (3) (7) (14) (14) (1) (5) (3) (16) (17) Dec-14 15 12 13 8.5 7.4 6.6 5.9 100 104 8.5 18.3 1.2 na na na

Sector* 27 8,654 0 1 (5) (15) (13) (1) (1) (1) (18) (16) Dec-14 11 8 11 9.0 8.1 7.5 6.8 102 105 7.6 15.9 1.2 na na na

Building Materials & Construction

Farhan Rizvi - 65 6212 3036

DGKC DGKC PA O PKR 136.6 175.0 28 578 4.3 0 4 (1) 24 33 (1) 2 3 21 30 Jun-15 13 13 (2) 7.8 6.9 6.2 6.3 106 108 4.0 11.6 0.8 2.3 5.7 6

Chemicals Farhan Rizvi - 65 6212 3036

Engro Corp ENGRO PA O PKR 280.1 368.0 31 1,418 8.4 0 3 (5) 26 26 (1) 1 (1) 24 23 Dec-14 150 17 16 20.9 8.4 7.2 6.2 107 112 3.6 27.3 2.1 1.1 4.7 74

FATIMA FATIMA PA O PKR 43.21 46.00 6 877 0.4 0 3 (8) 21 32 (1) 1 (4) 18 29 Dec-14 27 11 11 9.8 7.7 7.0 6.3 100 100 8.0 29.5 2.1 2.8 4.9 43 Fauji Fertiliser FFC PA N PKR 117.4 126.0 7 1,443 1.6 0 (3) (6) 0 (1) (1) (5) (3) (3) (4) Dec-14 8 2 3 8.2 7.6 7.4 7.3 112 109 12.5 75.3 5.6 1.9 5.9 30 Sector* 16 3,739 0 1 (6) 15 17 (1) (1) (2) 12 14 Dec-14 42 9 10 11.2 7.9 7.2 6.6 107 108 8.1 37.6 2.8 1.5 5.1 58

Energy Fahd Niaz - 65 6212 3035

OGDC OGDC PA N PKR 114.6 180.0 57 4,764 1.2 0 (5) (17) (44) (47) (1) (7) (13) (47) (50) Jun-15 (14) 30 13 5.6 6.5 5.0 4.5 96 112 7.0 16.3 1.0 2.5 3.8 (3)

POL POL PA O PKR 277.2 425.0 53 634 1.1 0 (5) (15) (27) (33) (1) (7) (11) (30) (36) Jun-15 (15) 56 18 7.8 9.1 5.8 4.9 88 105 9.7 22.0 2.0 2.2 4.1 (25) PPL PPL PA O PKR 112.5 210.0 87 2,144 1.6 0 (1) (11) (36) (39) (1) (3) (7) (39) (42) Jun-15 (1) 35 18 6.5 6.6 4.9 4.1 111 119 8.0 16.9 1.1 2.3 3.8 (3) PSO PSO PA O PKR 314.0 400.0 27 825 1.8 0 (0) (10) (12) (14) (1) (2) (6) (15) (17) Jun-15 117 32 36 12.3 5.7 4.3 3.2 109 130 3.2 17.0 0.9 0.2 6.9 53

Sector* 61 8,366 0 (4) (15) (38) (41) (1) (6) (11) (41) (44) Dec-14 (23) 14 24 5.0 6.5 5.7 4.6 100 108 7.2 17.8 1.1 0.8 4.1 6

Utilities Fahd Niaz - 65 6212 3035

HUBC HUBC PA N PKR 102.9 90.00 (13) 1,151 0.9 0 0 (3) 31 39 (1) (2) 0 29 36 Jun-15 12 10 4 10.7 9.6 8.7 8.3 108 104 10.1 35.6 3.4 1.6 7.6 106 KEL KEL PA O PKR 7.56 10.50 39 2,018 1.6 0 4 (6) (18) (10) (1) 2 (2) (21) (13) Jun-15 63 15 3 13.5 8.3 7.2 7.0 102 92 1.7 17.3 1.3 1.5 6.7 40 Sector* 1 3,170 0 1 (4) 18 26 (1) (1) (0) 16 23 Dec-14 34 17 7 13.6 10.2 8.7 8.1 95 103 7.4 20.4 2.5 1.4 7.4 59

Country Average* KSE100 33,030 44,939 36 24,508 1 2 (4) 3 3 Dec-14 (3) 11 16 7.3 7.5 6.7 5.8 102 107 7.4 18.5 1.3 1.1 4.9 21

Note: Prices are as of 9 December 2015

* Country/ sector aggregates are for the coverage above. Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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Philippines—valuation summary Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Banks Danielo Picache - 632 858 7758

Asia United Bank AUB PM O PHP 46.00 55.53 21 474 0.1 0 (1) (7) (0) 0 (0) 2 (4) 5 5 Dec-14 (19) 23 28 8.9 10.9 8.9 6.9 108 105 0.0 9.0 0.9 na na na BDO BDO PM N PHP 100.5 99.44 (1) 7,772 7.8 1 (3) (1) (8) (3) 1 0 2 (2) 1 Dec-14 10 18 25 16.0 14.6 12.4 9.9 102 105 2.1 13.5 1.9 na na na BPI BPI PM N PHP 82.80 80.90 (2) 6,901 3.3 1 (2) (3) (12) (10) 1 1 1 (7) (5) Dec-14 17 16 10 17.9 15.4 13.2 12.0 106 108 2.1 13.7 2.0 na na na

Metrobank MBT PM O PHP 80.50 101.1 26 5,431 4.9 2 (1) (6) (0) 1 2 2 (3) 5 5 Dec-14 (7) 13 20 11.3 12.1 10.7 9.0 113 111 1.2 11.5 1.2 na na na Security Bank SECB PM N PHP 138.0 159.5 16 1,765 1.9 (0) (1) (3) (9) (9) (1) 1 0 (4) (4) Dec-14 (4) 15 25 11.6 12.1 10.5 8.4 93 101 1.5 13.9 1.6 na na na Sector* 7 22,342 1 (2) (3) (7) (5) 1 1 (0) (2) (0) Dec-14 4 16 19 14.3 13.8 11.9 10.0 105 107 1.8 12.8 1.6 na na na

Conglomerates Alvin Arogo - 63 2 858 7716

AEV AEV PM N PHP 56.70 51.75 (9) 6,681 1.9 (0) (1) (0) 8 9 (1) 1 3 13 14 Dec-14 (11) 12 4 17.1 19.2 17.2 16.5 93 93 2.0 14.5 2.7 3.6 12.7 47

Alliance Global AGI PM N PHP 16.70 25.15 51 3,638 3.3 1 (7) (10) (26) (33) 1 (4) (7) (21) (28) Dec-14 6 4 14 12.8 12.2 11.6 10.2 101 96 2.2 12.4 1.4 1.4 4.8 4 Ayala Corp AC PM N PHP 728.0 768.6 6 9,569 5.1 (0) (4) (5) 5 7 (0) (1) (2) 10 12 Dec-14 3 32 13 24.8 24.1 18.3 16.2 91 103 0.6 9.7 2.2 3.8 14.8 56 JG Summit JGS PM N PHP 71.00 65.26 (8) 10,788 3.1 1 (1) (4) 8 12 1 2 (1) 13 16 Dec-14 32 7 10 27.3 20.7 19.4 17.6 103 101 0.3 11.6 2.3 3.3 13.0 57

LT Group LTG PM N PHP 14.36 15.48 8 3,296 1.7 (2) (4) 16 18 11 (2) (1) 19 24 15 Dec-14 44 47 15 35.2 24.5 16.7 14.5 114 123 1.1 5.9 1.4 2.9 22.5 8 Metro Pacific MPI PM O PHP 5.22 6.21 19 3,088 2.9 (1) (2) (1) 13 6 (1) 1 3 19 11 Dec-14 11 7 (5) 16.0 14.4 13.4 14.1 101 108 1.3 9.3 1.3 5.0 9.2 27 Sector* 5 37,060 (0) (3) (2) 5 5 (0) 0 1 10 10 Dec-14 10 15 9 21.3 19.4 16.8 15.4 98 101 1.0 10.6 2.0 3.2 11.7 36

Consumer Staples Alvin Arogo / Kathi Go / Sofia Cabral - 63 2 858 7716 / 63 2 858 7756 / 63 2 858 7757

D&L Industries DNL PM N PHP 8.80 10.20 16 1,333 1.9 (1) (6) (5) 6 9 (1) (3) (2) 11 13 Dec-14 28 16 15 35.7 28.0 24.2 21.0 96 93 0.9 19.2 5.0 3.2 21.3 25

Emperador EMP PM N PHP 9.00 9.90 10 3,078 0.6 0 (4) 1 (13) (12) 0 (1) 4 (8) (7) Dec-14 (2) 12 10 21.9 22.3 19.9 18.2 99 101 1.7 13.4 2.9 3.3 14.8 (9) Robinsons Retail RRHI PM N PHP 68.05 74.40 9 1,999 1.3 0 (3) (7) (10) (6) (0) 0 (4) (5) (1) Dec-14 17 17 14 26.1 22.4 19.2 16.8 98 99 0.7 10.1 2.2 0.9 13.1 (26) Universal Robina URC PM O PHP 185.8 246.6 33 8,598 9.9 1 (4) (10) (5) (3) 0 (1) (7) 1 2 Sep-15 15 16 16 32.1 27.9 24.0 20.7 96 95 1.7 20.5 5.4 3.4 17.0 9

Sector* 23 15,009 0 (4) (7) (6) (4) 0 (1) (4) (1) 1 Dec-14 10 15 14 29.8 27.1 23.6 20.7 97 97 1.5 15.5 4.0 2.6 17.1 (3)

Energy Alvin Arogo - 63 2 858 7716

Petron PCOR PM O PHP 7.21 14.90 107 1,434 0.5 (0) (4) (13) (32) (30) (0) (1) (10) (27) (25) Dec-14 nm 177 5 nm 26.5 9.5 9.1 40 101 0.7 5.2 1.3 0.5 7.9 97

Hotels, Restaurants & Leisure

Alvin Arogo / Patricia Palanca - 63 2 858 7716 / 63 2 858 7752

Belle Corp BEL PM O PHP 3.18 3.77 19 710 0.2 1 (1) (7) (32) (32) 1 2 (4) (27) (28) Dec-14 (34) 48 34 14.7 22.4 15.1 11.3 65 74 9.0 5.7 1.3 6.5 11.6 14

Bloomberry BLOOM PM O PHP 4.80 8.35 74 1,122 1.7 (2) (11) (15) (61) (61) (2) (8) (12) (56) (56) Dec-14 (139) nm 65 12.6 nm 35.2 21.3 92 124 1.1 (6.4) 2.2 2.8 8.3 95 Jollibee JFC PM O PHP 210.6 261.9 24 4,779 2.8 2 2 2 (2) 1 1 5 5 3 6 Dec-14 4 24 17 42.5 41.0 33.0 28.1 96 102 0.8 18.7 7.1 2.2 22.9 (6) Melco Crown (Phils) MCP PM O PHP 2.71 6.84 152 284 0.8 (9) (22) (28) (80) (79) (9) (19) (25) (75) (75) Dec-14 nm nm nm nm nm nm nm 81 98 0.0 (76.6) 2.2 1.6 nm 156

PLC PLC PM O PHP 0.82 1.37 67 550 0.6 (2) (14) (25) (62) (60) (3) (11) (22) (56) (55) Dec-14 (83) 220 60 9.3 56.2 17.6 11.0 112 111 3.0 2.9 1.7 7.5 12.9 (20) Travellers RWM PM N PHP 3.53 4.45 26 1,180 0.3 (2) (10) (19) (56) (54) (2) (8) (16) (51) (49) Dec-14 (28) (22) (4) 10.2 14.2 18.2 19.0 93 78 2.0 9.8 1.3 2.6 6.6 7 Sector* 38 8,625 0 (3) (7) (26) (24) (0) (1) (3) (21) (19) Dec-14 (84) 481 44 30.4 185.2 31.9 22.2 43 92 1.8 1.9 2.8 2.5 13.7 23

Metals & Mining Patricia Palanca - 63 2 858 7752

Semirara SCC PM N PHP 136.0 121.0 (11) 3,083 2.6 0 (1) (0) (4) (1) (0) 2 3 1 4 Dec-14 19 34 5 21.2 17.9 13.3 12.7 88 99 2.9 33.0 5.5 5.9 13.5 67

Real Estate Danielo Picache - 632 858 7758

Ayala Land ALI PM N PHP 33.80 39.10 16 10,524 8.0 (0) (3) (6) 0 (1) (0) (0) (3) 6 4 Dec-14 14 16 13 32.1 28.3 24.4 21.6 101 99 1.2 14.3 3.6 6.0 17.8 66 Filinvest Land FLI PM N PHP 1.82 1.82 0 936 0.8 1 (3) 7 20 19 1 (0) 10 25 24 Dec-14 17 18 12 9.6 8.3 7.0 6.2 105 106 2.7 9.8 0.8 4.5 11.7 62 Megaworld MEG PM N PHP 4.47 5.20 16 3,056 2.8 (1) (3) (1) (3) (10) (1) (0) 2 2 (6) Dec-14 (49) 10 15 6.7 13.0 11.8 10.3 106 101 0.9 9.6 1.2 4.0 10.5 13

Robinsons Land RLC PM O PHP 27.20 33.20 22 2,362 3.3 (3) (8) (6) 3 3 (3) (5) (3) 8 7 Sep-14 36 24 17 23.4 17.2 13.9 11.9 110 118 1.3 11.7 1.9 6.4 11.5 34 SM Prime SMPH PM N PHP 21.55 21.50 (0) 13,202 7.0 3 (4) (1) 26 31 2 (1) 2 32 36 Dec-14 26 14 16 33.8 26.8 23.5 20.3 103 106 1.1 12.9 3.3 9.2 17.5 51 Sector* 9 30,081 1 (4) (3) 12 13 1 (1) 0 18 18 Dec-14 (2) 15 14 21.8 22.2 19.2 17.5 104 104 1.2 12.1 2.5 6.6 15.5 45

Retailing Alvin Arogo - 63 2 858 7716

SSI Group SSI PM O PHP 3.82 6.50 70 268 1.0 (5) (13) (22) (61) (57) (5) (10) (19) (56) (53) Dec-14 (27) 42 30 9.2 12.6 8.9 6.8 94 109 0.0 10.6 1.3 0.9 5.0 27

Telecommunication Services

Chate Benchavitvilai - 65 6212 3241

Globe Telecom GLO PM U PHP 1,920 1,680 (13) 5,406 5.1 (1) (6) (12) 11 10 (1) (3) (8) 16 14 Dec-14 2 7 4 17.8 17.4 16.3 15.8 88 87 4.5 29.2 4.9 2.8 7.4 104 PLDT TEL PM U PHP 2,116 2,677 27 9,696 7.9 (1) (2) 6 (27) (25) (1) 1 9 (21) (20) Dec-14 (5) 4 8 12.2 12.9 12.4 11.5 102 107 7.7 26.0 3.3 3.1 7.2 69

Sector* 13 15,102 (1) (3) (0) (13) (12) (1) (0) 3 (8) (8) Dec-14 (3) 5 7 13.8 14.2 13.6 12.8 98 100 6.6 26.9 3.8 3.0 7.2 80

Transportation Muzhafar Mukhtar / Patricia Palanca - 60 3 2723 2084 / 63 2 858 7752

Cebu Air CEB PM O PHP 83.00 100.0 20 1,067 1.2 (1) (1) (6) (3) 1 (1) 2 (3) 3 5 Dec-14 157 (13) (15) 15.3 5.9 6.8 8.0 116 97 2.4 34.8 1.9 1.4 5.5 118 ICTSI ICT PM O PHP 71.00 117.0 65 3,065 2.6 0 (5) 2 (38) (38) (0) (3) 5 (33) (33) Dec-14 (16) 9 22 20.1 23.8 21.8 17.9 80 82 1.3 16.0 2.7 4.1 9.7 55 Sector* 53 4,132 (0) (4) (0) (29) (28) (0) (1) 3 (24) (23) Dec-14 42 (2) 3 18.2 13.2 14.0 13.6 98 89 1.6 22.3 2.4 2.6 7.9 69

Utilities Alvin Arogo / Patricia Palanca - 63 2 858 7716 / 63 2 858 7752

Aboitiz Power AP PM N PHP 40.00 42.50 6 6,244 2.2 0 (3) (4) (6) (3) 0 (0) (0) (0) 1 Dec-14 (1) 14 5 17.6 17.9 15.7 14.9 97 99 4.1 17.8 3.1 4.2 13.0 66

EDC EDC PM O PHP 5.90 9.80 66 2,347 2.3 (0) (6) (6) (27) (26) (0) (3) (3) (21) (21) Dec-14 5 24 7 12.5 11.8 9.5 8.9 102 109 3.0 20.6 2.3 4.6 7.8 99 First Gen FGEN PM O PHP 23.85 30.40 27 1,852 1.4 1 (3) 0 (6) (9) 1 (1) 4 (1) (5) Dec-14 9 11 3 11.0 10.0 9.1 8.8 129 107 1.4 11.2 1.1 2.0 5.5 110 Manila Water MWC PM U PHP 25.55 19.90 (22) 1,093 0.9 2 4 6 (10) (9) 1 7 10 (5) (5) Dec-14 (4) (2) (2) 9.5 10.0 10.2 10.4 105 104 3.3 14.6 1.4 4.6 6.2 57

Meralco MER PM N PHP 315.2 280.0 (11) 7,536 3.5 0 1 (4) 26 26 0 4 (1) 31 31 Dec-14 2 (0) 3 19.6 19.1 19.1 18.7 100 104 4.8 23.3 4.4 1.1 9.2 (37) Sector* 7 19,072 0 (1) (3) 4 5 0 1 (0) 9 9 Dec-14 2 10 4 15.9 15.5 14.2 13.6 103 104 4.0 17.8 2.7 2.2 8.6 59

Country Average* PCOMP 6,848 7,704 13 156,209 0 (3) (3) (5) (5) Dec-14 3 17 12 19.2 18.7 16.1 14.4 99 102 2.2 13.4 2.4 2.8 11.1 44

Note: Prices are as of 9 December 2015, * Country/ sector aggregates are for the coverage above. Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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Singapore—valuation summary Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Banks Anand Swaminathan - 65 6212 3012

DBS DBS SP O SGD 16.61 22.00 32 29,757 69.6 0 (0) (5) (19) (16) 0 1 (0) (5) (3) Dec-14 11 12 10 10.8 9.7 8.6 7.9 99 107 3.6 11.2 1.0 na na na OCBC OCBC SP N SGD 8.75 9.90 13 25,692 41.9 0 0 (4) (16) (16) 0 1 0 (1) (2) Dec-14 (1) 4 4 9.4 9.5 9.2 8.8 99 101 4.1 11.9 1.1 na na na UOB UOB SP N SGD 19.46 22.80 17 22,383 44.6 0 (1) (5) (21) (20) 0 (0) (1) (6) (6) Dec-14 (2) 9 9 9.9 10.1 9.3 8.5 98 104 4.6 11.0 1.1 na na na

Sector* 22 77,832 0 (0) (5) (19) (17) 0 0 (0) (4) (4) Dec-14 3 9 8 10.0 9.7 9.0 8.3 98 104 4.1 11.3 1.1 na na na

Capital Goods Gerald Wong - 65 6212 3037

COSCO Corp COS SP U SGD 0.38 0.30 (21) 598 0.7 0 0 0 (33) (33) 0 1 4 (18) (19) Dec-14 (82) 489 (21) 40.2 222.5 37.8 47.9 nm nm 1.3 0.3 0.6 1.0 18.5 142 Ezion Holdings Ltd EZI SP R SGD 0.59 659 9.0 0 2 (15) (48) (45) 0 2 (11) (33) (31) Dec-14 (4) 28 4 3.1 3.2 2.5 2.4 140 122 0.2 14.9 0.4 3.7 4.5 71 Noble NOBL SP N SGD 0.39 0.50 28 1,872 24.3 0 (8) (25) (66) (66) 0 (8) (21) (51) (53) Dec-14 98 21 23 14.2 7.1 5.9 4.8 75 71 4.9 5.1 0.4 0.1 6.1 51

Sembcorp Marine SMM SP N SGD 1.82 2.20 21 2,710 3.8 0 (8) (21) (44) (37) 0 (7) (16) (29) (23) Dec-14 (60) 77 2 6.8 16.9 9.5 9.3 69 108 2.7 7.7 1.3 1.3 13.2 74 Vard Holdings VARD SP N SGD 0.27 0.34 26 227 0.9 0 (7) (25) (55) (56) 0 (6) (21) (40) (42) Dec-14 (292) nm 24 5.7 nm 15.9 12.8 74 207 0.0 (17.7) 0.6 0.3 nm 23 Yangzijiang Ship YZJSGD SP N SGD 1.10 1.30 18 2,993 10.4 0 (2) (9) (9) (8) 0 (2) (4) 6 5 Dec-14 1 (7) (1) 5.5 5.5 5.9 5.9 116 114 4.9 16.2 0.8 1.1 6.1 5

Sector* 19 9,059 0 (5) (16) (37) (34) 0 (4) (12) (22) (21) Dec-14 (16) 28 6 6.3 8.1 6.4 6.1 99 103 3.6 8.2 0.7 0.2 8.1 54

Conglomerates Gerald Wong - 65 6212 3037

Keppel Corp KEP SP N SGD 6.42 7.50 17 8,314 25.8 0 (2) (9) (27) (22) 0 (1) (5) (13) (8) Dec-14 (22) (5) 6 6.2 7.9 8.3 7.8 98 96 7.5 13.9 1.1 1.6 10.5 52 ST Engineering STE SP N SGD 2.90 3.00 3 6,451 6.7 0 (1) (8) (13) (12) 0 (0) (4) 2 1 Dec-14 (6) 3 4 17.0 18.1 17.5 16.8 95 94 5.2 23.0 4.1 1.4 13.2 (9) Sembcorp Industries SCI SP O SGD 3.03 4.20 39 3,859 11.7 0 (4) (14) (32) (28) 0 (3) (9) (17) (14) Dec-14 (25) 15 8 6.8 9.0 7.8 7.2 96 106 5.3 10.4 0.9 1.0 6.8 53

Sector* 17 18,624 0 (2) (10) (23) (20) 0 (1) (5) (9) (6) Dec-14 (20) 2 6 8.1 10.2 10.0 9.4 97 98 6.2 13.9 1.4 1.3 9.7 45

Consumer Staples Tingmin Tan - 60 3 2723 2080

GGR GGR SP N SGD 0.34 0.35 3 3,109 6.7 0 (3) (11) (26) (25) 0 (2) (6) (11) (12) Dec-14 9 (3) 29 14.1 12.9 13.3 10.3 125 96 3.2 2.7 0.3 0.9 10.3 26 Wilmar Intl WIL SP O SGD 2.94 3.74 27 13,412 16.6 0 2 (4) (9) (9) 0 3 0 6 5 Dec-14 2 15 12 11.9 11.7 10.2 9.0 100 105 2.9 7.3 0.8 0.7 12.2 77 Sector* 23 16,521 0 1 (5) (12) (12) 0 2 (1) 2 2 Dec-14 9 12 15 12.2 11.9 10.6 9.2 104 103 2.9 5.7 0.6 0.7 11.8 59

Diversified Financials Arjan van Veen / Anand Swaminathan - 852 2101 7508 / 65 6212 3012

HLF HLF SP U SGD 2.32 2.20 (5) 733 0.1 0 (1) (3) (11) (10) 0 (1) 2 4 3 Dec-14 18 7 20 16.8 14.2 13.3 11.1 100 100 4.3 4.4 0.6 na na na

SGX SGX SP N SGD 7.54 8.00 6 5,756 15.6 0 (1) (1) (3) (1) 0 (0) 3 11 13 Jun-15 (0) 15 18 23.9 24.0 20.9 17.7 92 98 3.8 34.3 7.8 na na na Sector* 5 6,490 0 (1) (1) (4) (2) 0 (0) 3 11 12 Dec-14 5 7 17 23.4 22.3 20.8 17.7 96 96 3.8 15.8 3.4 na na na

Energy Shew Heng Tan - 65 6212 3014

Kris KRIS SP O SGD 0.31 0.44 42 329 0.1 0 (2) (7) (50) (50) 0 (1) (3) (35) (36) Dec-14 nm (65) 5 nm 3.2 9.3 8.9 219 103 0.0 16.2 0.5 5.4 19.8 36 RH Petrogas RHP SP U SGD 0.18 0.15 (17) 92 0.2 0 (9) (16) (55) (47) 0 (8) (12) (41) (33) Dec-14 (460) nm nm 16.2 nm nm nm 100 92 0.0 (20.2) 1.7 2.1 19.4 71

Sector* 30 421 0 (3) (9) (51) (49) 0 (3) (5) (36) (36) Dec-14 na (60) 18 nm 5.2 13.5 11.5 313 102 0.0 10.4 0.6 4.1 19.7 39

Healthcare Anand Swaminathan / Iris Wang - 65 6212 3012 / 852 2101 7646

Biosensors BIG SP R SGD 0.82 1,026 2.9 0 1 2 39 63 0 1 6 54 77 na na na na na na na na na na na na IHH Heathcare IHH SP O SGD 2.11 2.67 27 12,332 0.1 0 0 (0) 15 16 0 1 4 30 30 Dec-14 48 22 21 69.6 47.0 38.5 31.8 114 114 0.5 5.6 2.6 6.2 24.4 14 Raffles Medical RFMD SP O SGD 4.24 5.00 18 1,734 1.8 0 3 (2) 9 8 0 4 3 24 22 Dec-14 8 22 14 36.7 33.8 27.8 24.4 102 110 1.4 12.5 4.0 5.7 24.3 (15)

Sector* 18 2,760 0 2 (0) 20 29 0 3 4 35 42 Dec-14 8 22 14 36.7 33.8 27.8 24.4 102 110 1.4 12.5 4.0 5.7 24.3 (15)

Hotels, Restaurants & Leisure

Danny Chan - 60 3 2723 2082

Genting Singapore GENS SP O SGD 0.78 1.00 28 6,674 12.9 0 1 (9) (28) (30) 0 2 (4) (13) (16) Dec-14 (37) 44 14 20.6 32.5 22.7 19.8 99 101 1.3 3.9 1.3 2.8 7.9 (26)

Insurance Arjan van Veen - 852 2101 7508

Great Eastern GE SP O SGD 20.08 31.00 54 6,771 0.6 0 (4) (6) (16) (16) 0 (4) (2) (1) (2) Dec-14 6 8 14 10.8 10.2 9.4 8.3 116 120 4.9 15.5 1.5 na na na

Media Anand Swaminathan - 65 6212 3012

SingPress SPH SP N SGD 3.85 4.00 4 4,390 10.9 0 (3) (3) (7) (6) 0 (2) 1 7 8 Aug-15 (3) 12 6 19.1 19.7 17.6 16.6 106 118 5.2 8.6 1.7 6.0 15.6 25

Paper & Forest Products

Gerald Wong - 65 6212 3037

Halcyon Agri HACL SP O SGD 0.70 0.90 29 299 0.5 0 0 1 18 32 0 1 5 33 46 Dec-14 nm 77 56 nm 10.3 5.8 3.7 101 121 1.6 22.0 2.1 0.4 5.3 135

Real Estate Louis Chua - 65 6212 5721

CDL CIT SP O SGD 7.15 12.00 68 4,632 9.1 0 (1) (9) (30) (28) 0 (0) (5) (15) (15) Dec-14 12 39 5 14.3 12.8 9.2 8.8 87 110 2.2 5.9 0.7 2.7 9.3 23 CapitaLand CAPL SP N SGD 3.26 3.50 7 9,927 27.6 0 3 4 (2) (1) 0 3 8 13 13 Dec-14 3 27 14 19.7 19.2 15.1 13.3 104 118 2.8 4.3 0.8 6.8 11.1 55 Sector* 27 14,558 0 1 (0) (11) (9) 0 2 4 4 4 Dec-14 6 32 10 17.6 16.6 12.6 11.4 96 114 2.6 4.8 0.8 5.0 10.6 45

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Singapore—valuation summary (continued) Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

REITS Nicholas Teh - 65 6212 3026

AREIT AREIT SP O SGD 2.38 2.60 9 4,086 16.6 0 (2) 5 0 3 0 (1) 9 15 17 Mar-15 4 5 3 16.2 15.5 14.7 14.2 103 102 6.5 6.9 1.0 19.0 59 Ascott REIT ART SP N SGD 1.18 1.37 16 1,296 1.5 0 (2) (3) (7) (7) 0 (1) 1 7 7 Dec-14 27 13 (1) 24.2 19.1 16.8 17.0 93 91 6.7 4.4 0.8 18.8 60 CCT CCT SP U SGD 1.33 1.43 8 2,798 8.8 0 (3) (1) (24) (21) 0 (2) 4 (9) (7) Dec-14 (35) 5 3 11.0 16.9 16.1 15.6 97 96 6.4 4.5 0.8 27.7 22

CDL REIT CDREIT SP N SGD 1.32 1.66 26 928 1.4 0 1 (5) (24) (24) 0 1 (0) (9) (10) Dec-14 (1) 4 2 12.3 12.4 11.9 11.7 103 100 8.0 6.5 0.8 16.8 51 CMT CT SP O SGD 1.91 2.30 20 4,818 12.0 0 (2) (2) (6) (4) 0 (2) 3 8 10 Dec-14 (11) 3 5 14.6 16.3 15.8 15.1 102 101 5.8 6.4 1.0 18.5 40 FCT FCT SP O SGD 1.87 2.24 20 1,222 1.6 0 (0) (3) (1) (1) 0 0 1 14 12 Sep-15 4 1 1 17.0 16.3 16.1 15.9 97 96 6.4 5.9 0.9 20.4 39

K-REIT KREIT SP N SGD 0.96 1.11 16 2,188 3.1 0 1 (1) (22) (21) 0 2 3 (7) (7) Dec-14 16 3 3 21.4 18.4 17.8 17.4 90 91 7.2 3.7 0.7 41.8 57 Keppel DC REIT KDCREIT SP O SGD 1.04 1.17 13 651 1.3 0 (1) (1) 6 na 0 (0) 3 21 na Dec-14 2 7 3 15.6 15.2 14.3 13.9 100 98 6.4 7.8 1.2 17.1 49 MCT MCT SP O SGD 1.32 1.62 23 1,987 2.2 0 (0) (1) (7) (8) 0 0 3 8 5 Mar-15 4 2 2 17.8 17.2 16.8 16.5 98 99 6.2 6.1 1.0 21.7 56

MINT MINT SP O SGD 1.52 1.74 14 1,933 3.6 0 (0) 0 2 2 0 0 4 17 16 Mar-15 3 5 5 14.8 14.4 13.7 13.1 100 101 7.0 7.9 1.1 18.2 47 MLT MLT SP N SGD 1.01 1.08 7 1,778 3.2 0 (0) (0) (15) (14) 0 0 4 (0) (0) Mar-15 (7) (0) 1 10.3 11.0 11.1 11.0 112 108 7.3 8.8 1.0 17.2 67 OUEHT OUEHT SP N SGD 0.79 0.94 19 752 0.4 0 0 (5) (13) (14) 0 1 (0) 2 (0) Dec-14 (5) 83 (44) 13.3 14.0 7.7 13.7 99 156 8.4 6.2 0.9 20.0 71

SPH REIT SPHREIT SP N SGD 0.94 1.10 17 1,697 0.8 0 0 (1) (10) (10) 0 1 3 5 3 Aug-15 1 2 2 20.3 20.0 19.6 19.3 96 96 5.9 4.9 1.0 21.7 31 SUNT SUN SP U SGD 1.57 1.54 (2) 2,826 6.2 0 0 (1) (20) (19) 0 1 3 (5) (6) Dec-14 16 5 4 17.0 14.7 14.0 13.5 130 132 6.1 5.1 0.7 31.3 55 Sector* 14 28,960 0 (1) (1) (10) (9) 0 (0) 4 5 4 Dec-14 (3) 6 1 15.2 15.7 14.8 14.7 104 104 6.5 5.8 0.9 21.6 48

Retailing Anand Swaminathan - 65 6212 3012

OSIM OSIM SP U SGD 1.06 1.35 27 588 2.1 0 1 (19) (46) (48) 0 2 (15) (32) (34) Dec-14 (37) 17 25 8.5 13.7 11.7 9.3 93 95 6.6 17.4 2.8 1.0 6.1 (62)

Technology Hardware Anand Swaminathan - 65 6212 3012

Interplex INTX SP O SGD 0.73 0.80 10 285 0.2 0 (3) 4 28 35 0 (2) 8 43 49 Jun-15 13 23 21 6.5 5.8 4.7 3.9 102 104 6.7 23.9 1.3 0.5 3.5 61 Venture VMS SP N SGD 8.44 7.75 (8) 1,664 3.7 0 (1) (1) 7 9 0 (0) 3 22 22 Dec-14 14 10 10 16.6 14.6 13.2 12.0 103 104 5.9 8.9 1.4 0.8 9.3 (22) Sector* (6) 1,949 0 (1) (0) 10 13 0 (0) 4 25 26 Dec-14 24 14 14 13.7 11.9 10.6 9.4 104 106 5.7 10.7 1.3 0.7 7.3 (7)

Telecommunication Services

Varun Ahuja - 65 6212 3017

M1 M1 SP U SGD 2.79 2.35 (16) 1,863 2.7 0 0 (0) (23) (21) 0 1 4 (8) (8) Dec-14 1 (3) (10) 14.7 14.6 15.1 16.8 97 92 6.8 45.1 6.6 2.5 8.6 72 SingTel ST SP O SGD 3.85 4.40 14 43,729 67.0 0 0 (1) (1) (2) 0 1 4 14 12 Mar-15 5 (0) 6 16.2 15.4 15.4 14.6 102 97 4.7 16.0 2.5 4.1 13.8 34 StarHub STH SP U SGD 3.58 3.10 (13) 4,412 5.0 0 1 (1) (14) (12) 0 1 3 1 2 Dec-14 4 (6) (9) 16.7 16.0 17.0 18.7 106 99 5.6 227.8 32.7 2.6 8.6 120

Sector* 11 50,004 0 0 (1) (3) (4) 0 1 4 12 10 Dec-14 5 0 3 16.3 15.6 15.6 15.1 102 98 4.8 17.8 2.8 3.8 12.9 35

Transportation Timothy Ross / Anand Swaminathan / Muzhafar Mukhtar / Shew Heng Tan - 65 6212 3337 / 65 6212 3012 / 60 3 2723 2084 / 65 6212 3014

ComfortDelGro CD SP N SGD 3.05 2.90 (5) 4,672 11.7 0 1 (1) 17 17 0 1 3 32 31 Dec-14 7 9 6 22.9 21.5 19.8 18.7 99 95 2.8 13.5 2.8 1.5 7.5 (3) HPHT HPHT SP N USD 0.54 0.59 9 4,704 9.5 0 1 (2) (22) (21) 0 2 3 (7) (7) Dec-14 (6) 14 6 20.2 21.4 18.8 17.7 105 116 8.0 3.9 0.8 4.9 8.8 44 NOL NOL SP N SGD 1.22 1.30 7 2,262 8.6 0 2 16 45 49 0 3 20 60 62 Dec-14 nm nm 142 nm nm 43.8 18.1 111 284 0.0 (6.6) 0.9 0.7 13.8 76

SATS SATS SP O SGD 3.80 4.45 17 3,043 5.2 0 (3) (5) 25 31 0 (3) (0) 39 45 Mar-15 27 11 8 21.7 17.1 15.4 14.2 108 113 3.7 16.6 2.7 2.2 12.3 (24) SIA SIA SP O SGD 10.98 14.00 28 9,385 10.6 0 7 1 (5) (2) 0 8 5 10 12 Mar-15 150 21 (43) 38.1 15.3 12.6 22.2 124 113 4.1 6.8 1.0 1.0 4.9 (26) SMRT MRT SP U SGD 1.50 1.30 (13) 1,628 2.4 0 1 0 (5) (5) 0 2 5 10 8 Mar-15 (1) 2 9 25.1 25.3 24.7 22.7 99 92 2.1 10.3 2.5 2.3 8.8 78

Tiger Airways TGR SP U SGD 0.41 0.25 (39) 730 1.5 0 0 0 55 44 0 1 4 70 58 Mar-15 nm (15) 22 nm 86.7 102.0 83.3 79 22 0.0 5.7 4.8 1.4 17.2 (21) Sector* 11 26,425 0 3 1 5 7 0 3 5 20 21 Dec-14 101 46 (6) 46.5 24.8 17.4 18.5 111 111 3.8 5.2 1.3 1.3 7.3 13

Utilities Gerald Wong - 65 6212 3037

Hyflux HYF SP N SGD 0.60 1.00 67 370 0.6 0 (2) (10) (29) (25) 0 (2) (5) (14) (11) Dec-14 (108) nm 34 10.7 nm 9.4 7.0 194 168 3.8 (0.4) 0.6 4.0 22.2 52 Keppel Infra KIT SP O SGD 0.52 0.57 10 1,429 1.2 0 2 1 2 2 0 3 5 17 16 Dec-14 64 12 22 88.6 54.2 48.2 39.5 na 108 7.2 2.9 1.7 5.0 14.1 105

Sector* 21 1,798 0 1 (1) (4) (3) 0 2 3 11 10 Dec-14 (53) 193 29 35.5 76.4 26.1 20.3 194 135 6.5 1.6 1.2 4.7 15.5 80

Country Average* FSSTI 2,865 3,375 18 274,126 (0) (1) (4) (15) (14) Dec-14 2 11 7 12.0 12.7 11.7 11.1 101 104 4.4 9.2 1.1 1.0 11.0 40

Note: Prices are as of 9 December 2015

* Country/ sector aggregates are for the coverage above

Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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Taiwan—valuation summary Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Automobiles & Components

Jeremy Chen - 886 2 2715 6368

Cheng Shin Rubber 2105 TT U TWD 53.50 51.00 (5) 5,291 8.2 (2) (4) (10) (28) (27) (0) (1) (6) (17) (18) Dec-14 (25) 15 9 10.8 14.4 12.5 11.5 89 96 4.8 14.0 2.0 1.8 7.0 33

Banks Chung Hsu - 886 2 2715 6362

CTBC Holding 2891 TT O TWD 16.70 22.50 35 9,200 27.0 (2) (6) (7) (12) (12) (0) (3) (3) (1) (2) Dec-14 (10) (12) 9 6.5 7.2 8.2 7.5 115 99 2.8 16.0 1.1 na na na

Chang Hwa Bank 2801 TT N TWD 15.60 16.50 6 4,025 3.7 (1) (3) (7) (8) (6) 0 (0) (3) 4 4 Dec-14 6 1 1 11.9 11.3 11.2 11.1 102 99 1.7 8.9 1.0 na na na E. Sun Financial 2884 TT O TWD 19.55 23.00 18 4,743 10.1 (1) (2) (2) 8 9 1 0 3 20 19 Dec-14 8 11 12 11.7 10.8 9.8 8.8 109 107 1.8 12.0 1.3 na na na First FHC 2892 TT N TWD 15.00 16.95 13 5,247 10.8 (0) (3) (4) (12) (12) 1 (0) 0 (1) (2) Dec-14 (2) (8) 0 10.1 10.3 11.2 11.1 104 94 3.4 8.8 0.9 na na na

Hua Nan Financial 2880 TT N TWD 15.10 16.95 12 4,564 4.2 (1) (3) (5) (10) (9) 0 (0) 0 2 1 Dec-14 (8) 6 (0) 10.6 11.5 10.9 10.9 95 96 3.5 8.6 1.0 na na na Mega Financial 2886 TT N TWD 21.40 25.72 20 8,880 15.6 (2) (4) (7) (12) (11) (0) (1) (2) 0 (1) Dec-14 (3) 8 1 8.9 9.1 8.5 8.4 103 108 5.5 11.0 1.0 na na na SinoPac Financial 2890 TT O TWD 9.50 14.00 47 2,950 6.5 (3) (5) (12) (22) (21) (1) (2) (8) (10) (11) Dec-14 (21) 8 6 6.5 8.2 7.6 7.2 98 104 4.1 8.8 0.7 na na na

Ta Chong Bank 2847 TT O TWD 13.45 11.57 (14) 1,144 3.3 (0) (1) (3) 38 33 1 2 2 49 43 Dec-14 24 6 2 14.7 11.8 11.1 10.8 100 100 0.0 9.3 1.1 na na na Taishin Financial 2887 TT N TWD 11.45 12.50 9 3,373 6.1 0 (3) (11) (12) (15) 1 (0) (6) (1) (6) Dec-14 nm 4 8 141.7 6.7 6.4 5.9 107 106 2.2 14.2 0.9 na na na Sector* 20 44,126 (1) (4) (7) (9) (8) 0 (1) (2) 3 2 Dec-14 5 0 5 9.4 9.0 9.0 8.5 106 102 3.2 11.3 1.0 na na na

Building Materials & Construction

Jeremy Chen - 886 2 2715 6368

Asia Cement 1102 TT N TWD 28.00 28.00 0 2,872 3.9 (0) (1) (17) (28) (28) 1 2 (12) (17) (18) Dec-14 (25) 11 16 10.1 13.4 12.0 10.4 110 108 7.3 5.4 0.7 2.7 10.3 51 Taiwan Cement 1101 TT N TWD 29.55 31.00 5 3,329 7.5 (2) (3) (18) (32) (35) (1) (0) (14) (20) (25) Dec-14 (39) 31 13 10.1 16.5 12.6 11.1 97 108 8.4 6.8 1.1 1.8 10.7 36 Sector* 3 6,201 (1) (2) (18) (30) (31) 0 1 (13) (19) (22) Dec-14 (33) 21 15 10.1 14.9 12.3 10.8 103 108 7.9 6.0 0.9 2.2 10.5 44

Chemicals Jeremy Chen / Michelle Chou - 886 2 2715 6368 / 886 2 2715 6363

FCFC 1326 TT N TWD 68.10 76.00 12 12,178 8.9 (1) (4) (7) 2 2 1 (1) (2) 13 12 Dec-14 142 4 2 38.3 15.8 15.2 14.9 103 106 2.8 13.1 2.0 1.2 13.2 9

Formosa Plastics 1301 TT O TWD 72.90 94.00 29 14,159 12.4 0 (3) (3) 1 4 1 (0) 2 12 14 Dec-14 65 0 5 25.8 15.6 15.5 14.8 103 101 1.9 13.9 2.1 2.3 10.8 4 NYPC 1303 TT O TWD 58.30 88.00 51 14,107 12.3 (1) (4) (8) (11) (9) 0 (2) (3) 1 0 Dec-14 17 3 7 14.5 12.5 12.0 11.3 103 111 3.8 13.9 1.7 1.8 8.4 23 Taiwan Fertilizer 1722 TT U TWD 39.85 40.00 0 1,192 2.9 (1) (4) (4) (29) (21) 0 (1) 1 (17) (11) Dec-14 (6) (50) 1 12.7 13.5 26.8 26.4 92 108 5.2 5.5 0.7 1.7 11.7 5

Sector* 31 41,636 (1) (4) (6) (4) (2) 1 (1) (1) 8 8 Dec-14 50 1 5 21.6 14.4 14.2 13.6 103 106 2.9 13.1 1.8 1.7 10.3 12

Consumer Durables & Apparel

Jeremy Chen - 886 2 2715 6368

Giant 9921 TT N TWD 214.5 240.0 12 2,455 3.9 (1) (4) (12) (24) (22) (0) (2) (7) (12) (12) Dec-14 0 9 8 19.6 19.5 17.9 16.5 102 101 3.3 20.9 3.9 1.4 13.0 17 Merida 9914 TT O TWD 170.0 230.0 35 1,551 6.4 (3) (8) (18) (21) (25) (1) (5) (14) (9) (15) Dec-14 (8) 17 12 15.1 16.4 14.0 12.5 95 101 4.3 26.9 4.3 1.6 11.1 (20)

Sector* 21 4,005 (2) (6) (14) (23) (23) (1) (3) (10) (11) (13) Dec-14 (3) 12 10 17.5 18.2 16.2 14.7 99 101 3.7 23.1 4.1 1.4 12.2 3

Consumer Staples Jeremy Chen - 886 2 2715 6368

TFM 5903 TT O TWD 200.0 254.0 27 1,362 0.4 (1) (3) (5) 0 0 1 (0) 0 12 10 Dec-14 10 19 21 34.5 31.4 26.4 21.8 na na 2.7 29.7 9.1 0.7 14.2 (54) Uni-President 1216 TT O TWD 53.00 64.00 21 9,188 18.9 (1) (1) (4) 10 11 0 1 1 21 21 Dec-14 38 15 5 26.0 18.9 16.4 15.7 106 112 3.2 17.3 3.1 0.9 8.8 48 Sector* 22 10,550 (1) (2) (4) 9 10 0 1 1 20 20 Dec-14 35 15 6 26.9 19.9 17.3 16.3 106 112 3.1 17.9 3.4 0.9 9.2 45

Diversified Financials Chung Hsu / Michelle Chou - 886 2 2715 6362 / 886 2 2715 6363

China Development FHC 2883 TT N TWD 8.21 10.00 22 3,786 9.6 (2) (4) (7) (19) (18) (1) (2) (2) (7) (8) Dec-14 5 4 1 11.5 11.0 10.6 10.5 111 105 6.4 6.7 0.8 na na na

Yuanta FHC 2885 TT N TWD 12.05 18.03 50 3,838 12.4 (2) (4) (8) (20) (19) (0) (1) (3) (8) (9) Dec-14 (30) (10) (2) 8.0 11.4 12.7 12.9 92 80 4.4 6.4 0.7 na na na Sector* 36 7,624 (2) (4) (8) (19) (18) (0) (1) (3) (8) (8) Dec-14 (16) (3) (0) 9.4 11.2 11.5 11.6 101 92 5.4 6.6 0.7 na na na

Energy Jeremy Chen - 886 2 2715 6368

FPCC 6505 TT N TWD 74.10 84.00 13 21,537 7.7 0 (3) (5) 8 10 1 (1) (1) 19 19 Dec-14 371 (17) 6 77.9 16.5 19.9 18.8 104 91 0.9 16.6 2.6 1.1 12.2 34

Healthcare Jeremy Chen - 886 2 2715 6368

Ginko 8406 TT O TWD 411.0 468.0 14 1,162 3.6 (1) (0) 15 22 12 0 2 20 34 22 Dec-14 9 15 11 26.3 24.2 21.1 18.9 97 94 1.6 17.1 3.9 6.1 16.1 (1)

St.Shine 1565 TT O TWD 635.0 630.0 (1) 977 6.3 (1) 2 17 22 23 0 5 21 33 33 Dec-14 (8) 9 8 20.4 22.0 20.2 18.7 104 105 3.8 32.6 7.0 5.3 15.8 (23) Sector* 7 2,139 (1) 1 16 22 17 0 4 21 33 27 Dec-14 0 12 10 23.2 23.2 20.7 18.8 100 99 2.6 22.2 4.9 5.7 15.9 (8)

Insurance Chung Hsu - 886 2 2715 6362

Cathay FHC 2882 TT R TWD 42.85 16,425 32.1 (3) (7) (11) (9) (10) (1) (5) (6) 3 0 Dec-14 36 (38) (4) 10.9 8.0 12.9 13.5 113 81 2.5 15.6 1.2 na na na China Life Taiwan 2823 TT O TWD 26.35 33.50 27 2,685 10.7 (1) (1) (3) 3 2 0 2 1 15 12 Dec-14 73 (43) 1 12.2 7.1 12.4 12.4 na na 2.7 15.9 1.2 na na na

Fubon FHC 2881 TT N TWD 48.55 49.30 2 15,159 36.0 (2) (6) (12) (4) (4) (0) (3) (7) 7 6 Dec-14 14 (34) 2 8.2 7.3 11.0 10.8 103 76 2.1 17.8 1.4 na na na Shin Kong FHC 2888 TT N TWD 6.90 8.30 20 2,153 5.6 (1) (4) (10) (20) (22) (0) (1) (5) (9) (12) Dec-14 (40) 123 (6) 9.6 15.9 7.1 7.6 55 102 1.2 4.2 0.7 na na na Sector* 7 36,423 (2) (6) (11) (7) (7) (1) (3) (6) 5 3 Dec-14 23 (32) (1) 9.6 7.8 11.5 11.6 104 80 2.3 15.3 1.2 na na na

Metals & Mining Jeremy Chen - 886 2 2715 6368

China Steel 2002 TT U TWD 17.30 15.00 (13) 8,326 12.8 (1) (4) (13) (34) (34) 0 (1) (8) (23) (24) Dec-14 (66) (23) 91 12.0 35.0 45.3 23.8 74 64 5.6 2.5 0.9 1.7 10.6 66

Real Estate Chung Hsu / Jeremy Chen - 886 2 2715 6362 / 886 2 2715 6368

Huaku 2548 TT U TWD 60.90 52.00 (15) 514 1.5 (1) (0) (4) 7 (2) 0 3 1 18 8 Dec-14 81 (2) (12) 12.0 6.6 6.8 7.7 101 88 9.8 19.0 1.2 4.3 11.5 99 Ruentex Development 9945 TT N TWD 43.85 42.00 (4) 1,864 5.6 (0) (2) 9 (11) (10) 1 1 14 0 0 Dec-14 (0) (17) 35 8.0 8.0 9.7 7.2 100 102 3.8 19.3 2.2 8.8 54.3 88 Sector* (6) 2,378 (1) (1) 6 (7) (8) 1 1 11 4 2 Dec-14 12 (14) 21 8.6 7.7 8.8 7.3 100 98 5.1 19.2 1.9 6.9 27.2 91

Retailing Jeremy Chen - 886 2 2715 6368

President Chain Store 2912 TT O TWD 205.0 248.0 21 6,503 7.5 0 (1) (4) (16) (11) 2 1 1 (5) (2) Dec-14 (3) 11 13 23.5 24.1 21.7 19.3 102 104 3.4 33.7 7.9 0.9 11.4 (77)

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Taiwan—valuation summary (continued) Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Software & Services Jeremy Chen - 886 2 2715 6368

PChome online 8044 TT O TWD 315.0 455.0 44 960 11.8 (1) (0) (14) (3) (3) 1 3 (9) 8 7 Dec-14 9 30 27 40.3 37.0 28.5 22.4 106 113 1.5 23.7 6.2 1.0 17.5 (138)

Technology Hardware Randy Abrams / Derrick Yang / Pauline Chen / Jerry Su / Thompson Wu - 886 2 2715 6366 / 886 2 2715 6367 / 886 2 2715 6323 / 886 2 2715 6361 / 886 2 2715 6386

ASE 2311 TT N TWD 35.30 42.00 19 8,427 30.3 (2) (3) (5) (7) (9) (0) (0) (0) 4 1 Dec-14 (14) 18 12 12.0 13.8 11.8 10.5 103 100 5.7 12.7 1.7 1.2 6.5 38 AUO 2409 TT N TWD 8.59 10.70 25 2,522 21.4 (2) (3) (10) (47) (42) (0) (0) (6) (35) (32) Dec-14 (24) (32) (28) 4.7 6.2 9.1 12.6 102 156 6.2 7.2 0.4 0.4 2.1 29

AWSC 8086 TT N TWD 91.90 92.00 0 384 36.0 (3) (9) 15 121 175 (2) (6) 20 132 185 Dec-14 183 9 10 33.2 11.7 10.8 9.8 100 102 2.1 40.0 4.0 2.5 7.4 (50) Acer 2353 TT U TWD 11.20 10.50 (6) 1,054 5.5 (4) (6) (12) (47) (45) (2) (4) (7) (35) (36) Dec-14 (74) 31 6 17.0 65.5 49.9 47.1 68 54 0.0 0.8 0.5 0.0 1.4 (47) Airtac 1590 TT N TWD 140.0 160.0 14 765 3.5 (3) (4) (8) (49) (46) (2) (2) (3) (37) (36) Dec-14 (19) 29 18 14.2 17.6 13.6 11.5 92 97 3.3 15.3 2.7 3.6 11.7 66

Asustek 2357 TT N TWD 268.0 265.0 (1) 6,074 17.4 0 (1) (8) (23) (22) 1 1 (3) (11) (12) Dec-14 (11) 14 5 10.2 11.5 10.1 9.6 96 97 5.6 10.3 1.2 0.2 4.8 (55) Casetek 5264 TT O TWD 162.0 196.0 21 1,679 7.9 2 (0) (0) (10) (16) 3 2 4 2 (6) Dec-14 3 6 19 11.2 10.8 10.3 8.6 100 93 4.6 18.1 2.0 1.2 5.4 (30) Catcher 2474 TT O TWD 324.0 430.0 33 7,538 61.5 1 (0) (0) 31 27 2 2 4 43 37 Dec-14 36 (3) 5 14.0 10.3 10.6 10.2 96 85 2.5 23.9 2.3 2.8 5.8 (16)

Chicony 2385 TT N TWD 70.90 84.00 18 1,500 4.0 (2) (2) (7) (19) (15) (0) 0 (2) (8) (5) Dec-14 (7) 18 13 12.1 13.0 11.0 9.7 97 101 5.7 19.0 2.7 0.7 8.3 23 ChipMOS 8150 TT R TWD 31.85 871 1.7 (2) (1) (6) (24) (24) (1) 1 (1) (12) (14) Dec-14 (31) 13 20 8.2 12.0 10.6 8.8 92 93 4.5 12.4 1.4 1.1 3.6 (35) Chipbond 6147 TT O TWD 47.00 60.00 28 931 12.2 (3) (3) (10) (19) (13) (2) (0) (5) (7) (3) Dec-14 (12) 33 21 12.0 13.6 10.2 8.5 99 105 4.8 9.9 1.4 2.0 6.1 16

Chroma 2360 TT O TWD 63.60 76.00 19 735 1.6 (6) 4 4 (23) (23) (5) 7 9 (11) (14) Dec-14 1 20 16 18.2 18.1 15.1 13.0 105 115 3.9 14.6 2.6 2.1 13.3 (40) Compal 2324 TT N TWD 18.20 21.00 15 2,483 8.3 1 1 (9) (18) (9) 3 4 (5) (6) 1 Dec-14 26 12 12 11.2 8.9 8.0 7.1 101 107 6.2 8.6 0.8 0.1 4.7 (3) Coretronic 5371 TT O TWD 27.35 36.00 32 453 2.0 (4) (7) (16) (36) (39) (3) (5) (12) (25) (29) Dec-14 (34) 16 15 5.2 7.9 6.8 6.0 101 104 8.8 8.6 0.7 0.1 1.1 (47)

Delta 2308 TT O TWD 155.5 196.0 26 12,324 26.3 (1) (1) (8) (17) (15) 0 1 (3) (6) (5) Dec-14 (17) 16 17 18.3 22.1 19.0 16.2 93 95 3.2 19.8 4.9 2.0 13.9 5 E Ink 8069 TT N TWD 15.20 14.70 (3) 529 3.4 (3) 1 (3) 4 6 (2) 3 2 16 16 Dec-14 nm 250 14 nm 30.7 8.8 7.7 85 98 2.1 2.2 0.6 0.8 2.8 (20) Elan 2458 TT N TWD 43.25 38.00 (12) 580 3.6 (0) 6 16 (10) (3) 1 9 21 2 7 Dec-14 (45) 35 15 12.7 22.9 17.0 14.8 98 120 3.8 11.0 2.7 2.4 16.1 (44)

Epistar 2448 TT N TWD 22.00 30.00 36 739 13.5 (3) (3) (23) (65) (63) (2) 0 (18) (53) (53) Dec-14 (143) nm 254 11.4 nm 80.3 22.7 126 nm 0.0 (1.6) 0.4 1.3 8.0 14 Everlight 2393 TT N TWD 46.05 47.00 2 606 5.0 (4) 3 (5) (36) (30) (3) 6 (0) (24) (20) Dec-14 (25) 16 17 9.1 12.2 10.5 9.0 101 105 6.5 9.9 1.3 0.7 4.7 3 FTC 2354 TT N TWD 70.60 88.00 25 2,985 24.3 (2) (4) (17) (16) (18) (1) (1) (12) (5) (8) Dec-14 30 (5) 0 10.4 8.1 8.5 8.4 98 102 4.7 14.5 1.1 0.7 4.7 (21)

FocalTech 3545 TT N TWD 27.35 25.50 (7) 348 3.7 0 0 0 (29) (17) 1 3 5 (18) (8) Dec-14 (63) 152 32 13.8 37.9 15.1 11.4 na na 1.7 2.7 0.9 0.7 nm (31) HMI 3658 TT O TWD 1,180 1,400 19 2,556 26.7 (0) 4 (15) (26) (24) 1 7 (11) (15) (14) Dec-14 (25) 36 18 25.9 34.5 25.3 21.3 95 94 1.9 19.6 6.5 10.1 26.6 (107) HTC 2498 TT U TWD 77.90 57.00 (27) 1,968 32.9 (4) (5) (4) (45) (45) (2) (2) 1 (34) (35) Dec-14 nm nm 21 43.9 nm 196.9 162.1 108 nm 0.0 (19.4) 1.0 0.2 nm (66)

Himax HIMX US O USD 7.50 8.80 17 1,279 3.6 0 1 22 (7) (10) 0 2 22 (7) (10) Dec-14 (66) 92 62 19.4 57.3 29.9 18.4 85 110 1.4 4.9 2.9 2.0 32.9 17 Hiwin 2049 TT U TWD 131.5 135.0 3 1,080 10.2 (9) (14) (27) (49) (48) (8) (11) (22) (37) (39) Dec-14 (17) 12 13 14.7 17.8 15.9 14.1 97 98 2.0 14.7 2.5 3.0 12.4 74 Hon Hai 2317 TT O TWD 83.30 108.0 30 39,746 87.4 (1) (3) (3) (0) (3) 1 (0) 2 11 7 Dec-14 5 2 9 9.4 8.9 8.8 8.1 102 101 5.0 14.7 1.2 0.2 3.9 (32)

Innolux 3481 TT N TWD 10.05 12.00 19 3,052 23.1 0 1 (5) (35) (32) 1 4 (0) (23) (22) Dec-14 (17) (38) (8) 4.4 5.3 8.6 9.3 105 134 6.0 8.0 0.4 0.3 1.4 4 Inventec 2356 TT O TWD 19.65 23.00 17 2,151 5.8 3 6 2 (8) (7) 4 8 6 4 3 Dec-14 (16) 10 9 9.9 11.8 10.7 9.8 97 100 7.2 10.5 1.2 0.1 5.4 (20) Kinsus 3189 TT N TWD 67.20 77.00 15 914 6.8 (2) 7 (1) (36) (36) (1) 10 4 (25) (26) Dec-14 (25) 10 7 8.3 11.1 10.1 9.5 102 111 5.2 10.0 1.1 0.8 2.9 (43)

Largan 3008 TT N TWD 2,305 2,800 21 9,434 98.2 (2) (12) (12) (4) 1 (1) (9) (7) 8 11 Dec-14 18 5 11 15.9 13.4 12.8 11.5 94 91 2.6 45.3 5.6 4.7 9.4 (75) Lextar 3698 TT O TWD 16.05 22.00 37 295 2.2 (4) (6) (10) (48) (44) (3) (3) (5) (37) (35) Dec-14 (70) 368 18 13.9 46.5 9.9 8.4 81 240 1.6 1.5 0.7 0.6 3.4 (10) Lite-on Tech 2301 TT N TWD 33.00 37.00 12 2,351 4.9 (1) (3) (1) (9) (10) 0 0 3 3 (1) Dec-14 6 17 9 12.0 11.4 9.7 8.9 99 103 6.4 9.3 1.1 0.3 3.9 (21)

MediaTek 2454 TT N TWD 264.0 250.0 (5) 14,440 89.8 (2) (2) (8) (43) (40) (1) 1 (3) (31) (30) Dec-14 (40) (11) 6 8.9 14.9 16.8 15.8 101 90 8.3 11.1 1.7 1.5 10.2 (62) Merry 2439 TT N TWD 63.00 65.00 3 356 9.0 (4) (0) (7) (43) (41) (3) 2 (2) (32) (31) Dec-14 (46) 43 16 9.4 17.4 12.2 10.5 101 113 7.6 11.1 2.0 0.9 9.4 (12) NYPCB 8046 TT N TWD 36.05 32.00 (11) 711 1.8 2 9 6 (13) (10) 3 12 11 (2) (1) Dec-14 (58) 31 24 14.4 34.4 26.3 21.2 104 97 1.5 1.8 0.6 0.3 5.5 (36)

Novatek 3034 TT O TWD 130.0 140.0 8 2,414 15.3 (1) (1) 8 (27) (23) 1 2 13 (15) (13) Dec-14 (13) 4 5 11.0 12.7 12.2 11.7 100 101 6.7 24.8 3.5 1.3 9.0 (60) PTI 6239 TT N TWD 71.40 78.00 9 1,665 10.7 (1) (2) 1 32 33 1 1 6 43 43 Dec-14 21 16 3 16.8 13.9 11.9 11.5 102 104 4.3 12.1 1.6 1.3 3.7 (3) Parade 4966 TT O TWD 229.5 340.0 48 533 13.4 (1) 2 (7) (22) (27) 0 5 (2) (11) (17) Dec-14 (11) 22 13 14.0 15.8 13.0 11.5 94 100 2.2 19.7 3.1 1.7 10.0 (95)

Pegatron 4938 TT N TWD 86.30 93.00 8 6,854 26.8 (2) (1) 7 18 19 (0) 1 11 30 29 Dec-14 51 (0) (4) 13.8 9.1 9.2 9.6 96 91 6.6 17.3 1.5 0.1 2.7 (42) Quanta 2382 TT U TWD 53.50 46.00 (14) 6,305 12.0 (3) (3) (4) (32) (31) (2) (0) 0 (21) (22) Dec-14 (8) 3 11 10.9 11.9 11.5 10.4 98 94 6.4 13.9 1.8 0.2 8.2 (3) Radiant 6176 TT N TWD 82.10 105.0 28 1,165 16.8 (1) (4) (17) (19) (20) 0 (2) (13) (8) (10) Dec-14 (12) 36 9 10.2 11.7 8.6 7.8 108 99 5.9 14.1 1.7 0.2 2.3 (118)

Realtek 2379 TT N TWD 76.60 73.50 (4) 1,180 12.5 0 7 6 (28) (26) 2 10 11 (16) (16) Dec-14 (23) 11 10 12.5 16.1 14.6 13.3 103 107 7.5 11.4 1.9 0.8 7.2 (76) SPIL 2325 TT O TWD 44.60 52.00 17 4,241 21.5 (2) (1) 0 (7) (5) (1) 2 5 5 5 Dec-14 (1) 5 7 11.9 12.1 11.6 10.9 103 104 13.5 16.0 1.9 1.7 5.4 6 Synnex 2347 TT N TWD 31.00 35.00 13 1,501 3.6 (1) (2) (11) (33) (34) 0 1 (7) (21) (24) Dec-14 2 6 5 9.8 9.6 9.0 8.6 103 96 8.9 11.6 1.1 0.3 16.5 71

TOPOINT 8021 TT O TWD 23.30 34.00 46 113 1.1 (3) (4) (10) (18) (17) (2) (1) (5) (7) (7) Dec-14 (1) 15 6 10.3 10.4 9.0 8.4 99 94 5.2 7.9 0.8 0.9 2.7 (13) TPK 3673 TT O TWD 89.20 135.0 51 956 56.2 (5) (6) (13) (53) (56) (4) (4) (9) (41) (46) Dec-14 nm nm 23 102.9 nm 8.1 6.6 94 94 0.0 (55.7) 1.0 0.6 nm 141 TSMC 2330 TT N TWD 140.5 156.0 11 111,160 153.8 (1) (1) (1) (0) 2 (0) 1 4 11 12 Dec-14 7 10 6 13.8 12.9 11.7 11.0 94 101 3.2 24.9 3.0 4.0 6.2 (24)

TSMT 6278 TT N TWD 31.15 33.50 8 281 0.8 (2) (0) (0) (22) (22) (0) 2 4 (10) (12) Dec-14 (6) 9 4 8.8 9.4 8.6 8.2 100 98 4.3 9.0 0.8 0.3 4.1 (10) TXC 3042 TT N TWD 35.20 37.00 5 333 1.5 (2) (1) (2) (8) (1) (1) 2 2 3 9 Dec-14 (7) 1 9 11.0 11.8 11.7 10.8 99 97 6.6 10.3 1.2 1.1 5.1 (4) Teco 1504 TT N TWD 25.25 26.00 3 1,543 3.5 (2) (4) (7) (16) (21) (1) (2) (2) (5) (11) Dec-14 (12) 2 10 12.4 14.1 13.8 12.6 97 96 3.9 7.4 1.1 0.9 8.7 (13)

Tripod 3044 TT N TWD 56.50 60.00 6 906 2.6 (2) (2) 10 (9) (9) (0) 1 15 3 1 Dec-14 1 5 8 11.3 11.2 10.7 9.9 98 99 4.9 9.5 1.1 0.5 3.8 (27) UMC 2303 TT N TWD 11.60 13.50 16 4,513 15.6 (3) (4) (5) (21) (19) (2) (1) 0 (10) (9) Dec-14 (4) (4) 18 11.9 12.4 12.9 10.9 102 103 4.9 5.2 0.6 0.8 2.1 (13) Unimicron 3037 TT N TWD 14.85 17.00 14 694 4.1 (2) (0) (0) (39) (37) (0) 2 4 (27) (27) Dec-14 (111) nm 80 46.0 nm 42.6 23.6 676 121 0.0 (0.1) 0.5 0.6 4.9 40

VPEC 2455 TT O TWD 44.60 49.00 10 335 12.2 2 2 20 50 57 4 5 25 61 67 Dec-14 27 10 11 23.5 18.5 16.8 15.1 100 100 4.5 16.7 3.1 4.1 11.0 (44) Vanguard 5347 TT O TWD 39.75 50.00 26 1,986 6.5 (3) (5) (7) (24) (15) (1) (2) (2) (12) (6) Dec-14 (26) 6 15 12.0 16.2 15.3 13.3 97 92 6.5 14.8 2.4 2.8 9.6 0 WPG 3702 TT N TWD 31.30 40.00 28 1,581 3.9 (2) (2) (7) (15) (12) (0) 1 (3) (3) (2) Dec-14 (4) 19 11 8.9 9.3 7.8 7.0 98 108 8.0 12.1 1.1 0.2 12.4 123

Win Semi 3105 TT O TWD 50.80 62.00 22 944 14.2 (2) (2) 8 85 87 (1) 1 13 97 96 Dec-14 37 11 14 15.3 11.2 10.1 8.8 101 101 0.4 16.5 1.8 2.5 5.7 (3) Wistron 3231 TT N TWD 18.75 14.00 (25) 1,468 8.8 2 11 12 (33) (30) 4 13 17 (21) (20) Dec-14 (26) 25 25 12.5 16.9 13.5 10.8 108 84 4.7 3.8 0.6 0.1 6.7 45 Sector* 14 286,528 (1) (2) (3) (8) (7) 0 1 2 4 3 Dec-14 (6) 11 8 12.0 12.8 11.4 10.6 97 101 4.4 13.9 1.7 0.6 5.6 (18)

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Taiwan—valuation summary (continued) Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Telecommunication Services

Chate Benchavitvilai - 65 6212 3241

CHT 2412 TT U TWD 98.40 77.50 (21) 23,290 29.4 (0) (1) (1) 5 6 1 2 4 16 16 Dec-14 (2) 5 4 20.5 20.8 19.8 19.1 90 92 4.6 10.1 2.1 3.2 9.3 (3) FET 4904 TT U TWD 67.60 61.25 (9) 6,721 10.2 (1) (2) (3) (7) (1) 0 1 2 4 9 Dec-14 (4) 9 9 19.3 20.0 18.5 16.9 93 95 5.5 15.4 3.1 2.7 9.0 39

TWM 3045 TT U TWD 98.00 89.50 (9) 10,229 11.5 0 (1) (4) (6) (2) 1 1 1 5 8 Dec-14 (0) 7 6 17.6 17.7 16.6 15.7 99 103 5.7 26.0 5.9 3.3 11.7 81 Sector* (16) 40,239 (0) (1) (2) (0) 3 1 2 3 11 13 Dec-14 (2) 6 5 19.5 19.8 18.6 17.7 93 95 5.0 12.7 2.7 3.1 9.8 13

Transportation Timothy Ross - 65 6212 3337

CAL 2610 TT O TWD 11.20 13.40 20 1,869 7.2 4 3 (6) (23) (23) 6 5 (1) (11) (13) Dec-14 nm (17) 1 158.4 7.7 9.3 9.2 114 102 4.3 15.0 1.1 1.4 8.0 164 EMC 2603 TT U TWD 12.75 13.00 2 1,367 3.8 0 (2) (12) (43) (33) 1 1 (7) (31) (23) Dec-14 nm nm 55 nm nm 22.3 14.5 140 162 0.0 (3.7) 0.8 0.7 15.8 74

EVA 2618 TT O TWD 17.45 24.30 39 2,055 12.2 4 4 (11) (21) (19) 5 6 (6) (10) (9) Dec-14 nm (11) (17) 91.3 7.5 8.3 10.1 106 101 0.0 21.9 1.6 1.2 7.1 81 WHL 2615 TT U TWD 16.00 18.00 13 1,083 4.2 3 (4) (20) (42) (42) 4 (1) (15) (31) (32) Dec-14 (40) 51 (12) 6.7 11.3 7.5 8.5 81 259 2.8 8.4 0.9 0.5 4.1 (4) Sector* 21 6,374 3 1 (11) (30) (27) 4 4 (6) (18) (17) Dec-14 266 19 (4) 42.6 11.6 9.7 10.1 109 122 1.7 9.0 1.1 1.0 7.9 84

Country Average* TWSE 8,230 9,322 13 530,840 (1) (3) (5) (12) (10) Dec-14 3 3 7 13.0 12.6 12.3 11.5 99 99 3.9 13.0 1.6 0.8 6.9 (1)

Note: Prices are as of 9 December 2015

* Country/ sector aggregates are for the coverage above

Source: Company data, Thomson Financial IBES, Credit Suisse estimates

Thailand—valuation summary Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Automobiles & Components

Putt Virasathienpornkul - 66 2 614 6212

PCSGH PCSGH TB U THB 5.30 6.00 13 228 0.1 0 0 (8) (38) (36) 1 3 (0) (25) (19) Dec-14 1 6 11 11.4 11.3 10.6 9.5 96 89 5.3 13.9 1.6 1.8 5.8 (15) Somboon Advance Technology

SAT TB O THB 16.60 21.00 27 196 0.1 0 (5) (3) 2 (3) 1 (1) 5 16 13 Dec-14 (4) 15 15 10.9 11.3 9.8 8.6 98 98 3.6 11.5 1.3 1.0 5.5 30

Thai Stanley Electric STANLY TB O THB 177.0 208.0 18 377 0.1 0 (1) (2) (12) (14) 1 3 5 1 3 Mar-15 (4) 9 19 11.7 12.2 11.1 9.3 103 103 3.1 9.3 1.1 1.0 4.6 (27)

Sector* 18 802 0 (1) (4) (16) (17) 1 2 4 (3) (1) Dec-14 (5) 9 15 11.1 11.7 10.7 9.4 99 97 3.8 11.1 1.3 1.2 5.2 (10)

Banks Dan Fineman / Thaniya Kevalee - 66 2 614 6218 / 66 2 614 6219

BAY BAY TB U THB 31.00 25.00 (19) 6,346 1.4 0 (5) (7) (31) (31) 1 (2) 1 (17) (15) Dec-14 10 5 13 13.3 12.1 11.5 10.2 105 98 3.2 11.6 1.2 na na na BBL BBL/F TB N THB 160.0 164.0 2 8,500 4.1 0 (2) (4) (18) (20) 1 2 3 (5) (3) Dec-14 (10) (1) 12 8.4 9.4 9.4 8.4 95 89 4.8 9.5 0.9 na na na KBANK KBANK/F TB U THB 160.5 155.0 (3) 10,691 10.0 0 (4) (10) (30) (34) 1 (0) (2) (16) (17) Dec-14 (12) (4) 29 8.3 9.4 9.9 7.7 99 87 2.1 14.9 1.3 na na na

KTB KTB TB U THB 16.30 16.00 (2) 6,340 23.4 0 (4) (5) (28) (31) 1 (0) 2 (15) (14) Dec-14 (10) 14 7 6.9 7.6 6.6 6.2 105 105 5.3 12.6 0.9 na na na SCB SCB TB N THB 127.5 129.0 1 12,046 23.6 0 (2) (6) (30) (33) 1 1 2 (16) (16) Dec-14 (15) 6 18 8.1 9.6 9.0 7.6 97 95 5.2 15.5 1.4 na na na TCAP TCAP TB O THB 33.50 40.00 19 1,191 3.1 0 (2) (3) 6 2 1 1 5 19 18 Dec-14 10 21 17 8.4 7.6 6.3 5.4 102 112 5.1 10.3 0.7 na na na

TISCO TISCO TB N THB 41.25 41.50 1 919 1.7 0 (2) 8 (3) (7) 1 1 15 11 10 Dec-14 (5) 17 8 7.8 8.2 7.0 6.5 99 101 4.2 14.9 1.2 na na na TMB TMB TB N THB 2.50 2.60 4 3,044 7.8 0 (4) (7) (14) (19) 1 (1) 0 (1) (2) Dec-14 (5) 0 22 11.4 12.0 12.0 9.8 104 94 2.9 12.5 1.4 na na na Sector* (2) 49,078 0 (3) (6) (25) (28) 1 0 1 (12) (11) Dec-14 (9) 4 17 8.6 9.5 9.1 7.8 100 95 4.1 12.7 1.1 na na na

Building Materials & Construction

Paworamon (Poom) Suvarnatemee - 66 2 614 6210

SCC SCC TB O THB 438.0 534.0 22 14,628 23.8 0 (1) (6) (2) (5) 1 2 2 11 12 Dec-14 23 9 11 15.6 12.7 11.6 10.4 94 97 3.6 21.9 2.6 1.5 8.8 59 SCCC SCCC TB O THB 309.0 385.0 25 1,978 1.0 0 (4) (8) (29) (28) 1 (1) (0) (15) (11) Dec-14 (9) 13 6 14.0 15.4 13.6 12.8 98 101 4.4 21.6 3.3 2.5 10.2 26 Sector* 22 16,606 0 (1) (6) (5) (8) 1 2 2 8 9 Dec-14 19 10 11 15.4 12.9 11.8 10.7 94 98 3.7 21.9 2.7 1.6 9.0 56

Capital Goods Atul Sethi - 66 2 614 6211

CK CK TB N THB 27.00 28.25 5 1,273 6.3 0 (3) (4) 7 4 1 1 4 20 21 Dec-14 47 16 22 44.5 30.4 26.1 21.4 125 121 2.0 7.8 2.3 2.4 31.8 181

ITD ITD TB N THB 7.00 7.20 3 1,029 20.1 0 (7) (10) 9 (10) 1 (4) (2) 23 7 Dec-14 94 39 4 110.7 57.0 40.9 39.5 131 96 0.0 4.5 2.5 1.2 12.1 156 STECON STEC TB O THB 24.00 30.00 25 1,019 5.4 0 (1) (4) 3 (7) 1 2 4 16 10 Dec-14 (15) 21 22 24.1 28.5 23.5 19.3 103 109 1.7 15.0 4.2 1.7 17.1 (39) UNIQ UNIQ TB N THB 19.20 22.00 15 578 3.2 0 (9) (12) 67 55 1 (6) (4) 80 72 Dec-14 61 28 20 41.3 25.6 20.0 16.6 111 97 1.6 13.6 3.3 2.4 11.6 84

Sector* 11 3,898 0 (5) (6) 15 5 1 (1) 1 29 22 Dec-14 26 24 18 41.4 33.0 26.7 22.5 115 107 1.3 8.8 2.8 1.8 17.1 123

Chemicals Paworamon (Poom) Suvarnatemee - 66 2 614 6210

IRPC IRPC TB N THB 4.16 4.70 13 2,366 11.4 0 (0) 2 36 28 1 3 10 49 45 Dec-14 nm (19) 7 nm 7.6 9.4 8.8 122 99 4.6 15.4 1.1 0.8 8.0 76 Indorama Ventures IVL TB N THB 22.20 23.00 4 2,975 7.3 0 (3) (6) 10 2 1 1 2 23 19 Dec-14 203 31 32 72.0 23.8 18.1 13.8 76 90 2.1 7.5 1.7 0.7 9.9 111 PTTGC PTTGC TB U THB 49.75 54.00 9 6,243 21.2 0 (5) (10) (3) (11) 1 (2) (2) 11 6 Dec-14 46 16 28 14.9 10.2 8.8 6.9 83 85 4.9 9.4 0.9 0.7 5.9 21

Sector* 8 11,584 0 (4) (6) 8 1 1 (0) 2 22 18 Dec-14 234 8 24 36.9 11.0 10.3 8.3 91 88 4.1 10.3 1.1 0.7 7.3 48

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Thailand—valuation summary (continued) Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Consumer Staples Putt Virasathienpornkul / Warayut Luangmettakul - 66 2 614 6212 / 662 614 6214

Big C Supercenter BIGC TB N THB 189.0 200.0 6 4,340 0.9 0 (6) (3) (20) (25) 1 (2) 5 (7) (8) Dec-14 2 15 13 21.6 21.2 18.3 16.2 100 103 1.9 16.5 3.3 1.4 12.4 24 C.P. ALL CPALL TB O THB 41.00 52.00 27 10,251 22.5 0 (12) (16) (4) (3) 1 (9) (9) 10 14 Dec-14 40 25 21 37.7 26.8 21.5 17.7 104 106 2.6 39.5 9.9 1.4 16.3 424 CBG CBG TB U THB 33.50 30.00 (10) 932 1.2 0 4 (12) 0 (5) 1 7 (5) 13 12 Dec-14 45 7 7 36.7 25.2 23.6 22.0 100 93 1.6 22.1 5.6 4.2 18.7 (16)

CPF CPF TB O THB 19.30 25.00 30 4,159 14.1 0 (2) (3) (29) (30) 1 1 4 (16) (14) Dec-14 (36) 93 36 22.0 34.2 17.7 13.0 61 87 3.4 3.4 1.1 0.8 13.0 100 Home Pro HMPRO TB U THB 6.60 6.20 (6) 2,416 2.8 0 (4) (6) (15) (20) 1 (0) 2 (1) (3) Dec-14 4 13 15 26.2 25.2 22.2 19.3 100 99 3.2 20.8 5.0 1.9 13.0 74 ICHI ICHI TB O THB 13.10 20.00 53 474 1.5 0 (6) (17) (35) (38) 1 (3) (9) (21) (21) Dec-14 (10) 20 24 15.8 17.6 14.6 11.8 98 100 2.7 15.7 2.8 3.0 12.0 34

Siam Global GLOBAL TB U THB 9.85 8.80 (11) 955 1.2 0 (4) (1) 3 (5) 1 (1) 7 17 12 Dec-14 35 24 23 48.9 36.1 29.0 23.7 108 108 0.2 9.3 3.2 2.1 17.0 27 Siam Makro MAKRO TB N THB 38.00 41.00 8 5,077 0.1 0 0 (2) 5 3 1 3 6 18 20 Dec-14 16 19 18 37.3 32.3 27.0 23.0 101 101 2.5 41.7 12.7 1.2 20.5 38 Thai Union TU TB O THB 18.30 22.50 23 2,430 5.3 0 (1) 3 (19) (21) 1 2 10 (6) (4) Dec-14 (9) 24 6 15.3 16.9 13.6 12.8 92 99 3.2 11.7 1.9 1.0 12.5 73

Sector* 16 31,034 0 (6) (7) (10) (12) 1 (2) 0 3 5 Dec-14 6 28 19 27.6 25.9 20.3 17.0 94 100 2.6 14.4 3.5 1.2 14.8 112

Energy Paworamon (Poom) Suvarnatemee - 66 2 614 6210

PTT PTT TB N THB 241.0 257.0 7 19,159 53.0 0 (4) (16) (26) (30) 1 (0) (8) (12) (13) Dec-14 (47) 191 11 12.3 23.4 8.1 7.3 40 98 1.9 4.3 1.0 0.5 3.7 39 PTTEP PTTEP TB N THB 57.75 80.00 39 6,381 19.9 0 (7) (22) (48) (53) 1 (4) (14) (35) (36) Dec-14 (58) 94 54 10.7 25.7 13.2 8.6 43 78 1.6 2.1 0.5 1.3 1.9 5 TOP TOP TB O THB 57.25 75.00 31 3,251 9.6 0 (4) 5 36 30 1 (1) 12 50 47 Dec-14 nm 21 (6) nm 9.6 8.0 8.5 94 113 4.7 13.9 1.3 0.5 6.1 43

Sector* 16 28,790 0 (4) (15) (24) (28) 1 (1) (7) (10) (11) Dec-14 (31) 133 15 14.1 20.5 8.8 7.7 47 96 2.1 4.2 0.8 0.6 3.3 30

Healthcare Thaniya Kevalee - 66 2 614 6219

Bangkok Chain Hospital BCH TB N THB 8.00 6.50 (19) 555 0.6 0 3 19 1 (10) 1 6 26 15 7 Dec-14 (24) 26 29 38.2 50.2 39.8 30.9 84 89 1.3 9.5 4.7 4.4 18.7 72 Bangkok Dusit BDMS TB O THB 20.70 22.50 9 8,925 12.2 0 3 8 20 14 1 6 16 34 31 Dec-14 7 25 21 44.7 41.7 33.3 27.4 99 107 1.2 15.7 6.3 5.5 24.8 47 Bumrungrad Hosp BH TB O THB 204.0 245.0 20 4,137 8.4 0 (5) (1) 45 43 1 (2) 6 58 60 Dec-14 27 23 13 55.2 43.5 35.5 31.4 101 108 1.3 28.7 11.5 8.5 28.3 (22)

Chularat Hospital CHG TB O THB 2.46 2.50 2 753 2.3 0 3 6 37 32 1 6 14 50 49 Dec-14 5 39 23 56.3 53.6 38.4 31.2 81 96 1.3 17.8 9.4 8.8 34.1 (4) Sector* 11 14,370 0 1 6 27 22 1 4 13 41 39 Dec-14 11 25 19 47.5 43.0 34.4 28.8 98 106 1.2 17.7 7.3 6.1 25.6 34

Hotels, Restaurants & Leisure

Thaniya Kevalee - 66 2 614 6219

Centel CENTEL TB O THB 47.75 41.00 (14) 1,794 3.6 0 11 21 54 36 1 14 29 68 53 Dec-14 53 16 11 54.3 35.6 30.8 27.7 101 102 1.1 15.6 5.3 3.7 15.5 66

Erawan ERW TB N THB 4.18 4.20 0 289 0.5 0 (1) (1) (10) (16) 1 2 7 4 1 Dec-14 nm 98 40 nm 51.6 26.1 18.6 89 121 0.8 4.3 2.2 3.3 12.7 153 MINT MINT TB O THB 36.00 29.50 (18) 4,411 7.5 0 4 8 22 8 1 7 16 35 25 Dec-14 6 19 17 36.5 34.4 28.9 24.8 95 94 1.3 15.4 5.0 4.5 21.7 99 Sector* (16) 6,494 0 5 11 29 15 1 9 19 43 32 Dec-14 23 20 16 43.4 35.2 29.3 25.2 97 97 1.2 14.3 4.8 4.2 18.9 96

Insurance Arjan van Veen - 852 2101 7508

Bangkok Life BLA TB U THB 50.50 39.25 (22) 2,395 1.2 0 (5) (3) 10 (3) 1 (1) 5 23 14 Dec-14 37 29 8 32.1 23.5 18.2 17.0 90 83 0.7 14.0 3.2 na na na

Media Thaniya Kevalee / Warayut Luangmettakul - 66 2 614 6219 / 662 614 6214

BEC World BEC TB U THB 33.00 28.00 (15) 1,837 1.3 0 0 6 (35) (40) 1 3 14 (22) (23) Dec-14 (28) 3 4 15.2 21.2 20.6 19.8 97 94 4.5 38.6 8.5 4.0 9.2 2 MCOT MCOT TB U THB 8.10 8.60 6 155 0.1 0 (8) (17) (50) (54) 1 (5) (10) (36) (37) Dec-14 (84) 61 26 11.0 69.7 43.3 34.5 39 59 2.5 1.1 0.8 1.6 6.4 3 Major Cineplex MAJOR TB N THB 31.75 31.00 (2) 789 1.7 0 1 2 14 23 1 4 10 28 40 Dec-14 6 6 16 27.8 26.2 24.7 21.2 89 81 3.5 16.7 4.2 3.6 12.9 57

VGI Global VGI TB O THB 3.70 4.80 30 707 1.4 0 (2) 1 (37) (43) 1 2 8 (24) (26) Mar-15 (17) 17 12 25.1 30.2 25.8 23.2 95 97 3.0 44.6 13.0 12.0 20.1 9 Sector* (2) 3,487 0 (0) 3 (25) (27) 1 3 11 (12) (10) Dec-14 (25) 5 9 18.2 24.3 23.1 21.2 93 90 3.8 21.6 5.3 4.1 10.9 18

Real Estate Atul Sethi - 66 2 614 6211

AP (Thailand) AP TB O THB 5.40 6.85 27 473 1.6 0 (5) (8) (9) (16) 1 (2) (1) 4 1 Dec-14 6 9 33 6.5 6.2 5.6 4.3 101 101 6.6 16.4 1.0 1.3 7.7 86 CPN CPN TB O THB 44.75 56.00 25 5,590 6.7 0 (1) (3) (2) (4) 1 2 4 12 13 Dec-14 10 16 18 27.5 24.9 21.5 18.2 97 97 1.7 18.5 4.4 9.3 17.6 58

L.P.N. LPN TB N THB 16.40 16.40 0 674 2.1 0 (2) (6) (25) (34) 1 1 1 (12) (17) Dec-14 28 7 10 12.0 9.3 8.7 8.0 98 95 6.1 23.5 2.1 1.8 9.2 52 Land and Houses LH TB O THB 8.75 9.85 13 2,857 3.4 0 (1) (2) (3) (8) 1 3 6 10 9 Dec-14 (10) 16 15 13.6 15.1 13.0 11.2 105 106 5.3 15.4 2.2 4.9 18.8 51 Pruksa PS TB U THB 25.00 25.00 0 1,552 3.2 0 0 (8) (13) (17) 1 3 (1) 0 0 Dec-14 (3) 10 7 8.4 8.6 7.9 7.4 97 96 3.7 20.2 1.6 1.7 9.1 72

Quality Houses QH TB O THB 2.14 3.00 40 638 3.2 0 (4) (14) (32) (36) 1 (1) (7) (18) (19) Dec-14 (18) 17 9 5.9 7.1 6.1 5.6 102 109 5.6 15.2 1.0 2.0 13.4 97 Supalai SPALI TB U THB 17.20 16.20 (6) 822 3.2 0 (6) (9) (29) (36) 1 (3) (2) (15) (19) Dec-14 (2) 1 15 6.6 6.7 6.7 5.8 98 96 5.8 23.0 1.4 1.9 6.7 52 Sector* 17 12,605 0 (2) (5) (8) (12) 1 2 3 5 5 Dec-14 (1) 12 15 13.1 13.2 11.8 10.3 99 99 3.7 18.2 2.3 3.2 12.8 65

Retailing Warayut Luangmettakul - 662 614 6214

Robinson Department Store ROBINS TB U THB 42.25 41.00 (3) 1,306 1.7 0 (1) 4 (6) (4) 1 2 11 7 13 Dec-14 13 15 16 24.2 21.3 18.5 16.0 103 103 2.3 16.8 3.4 1.9 10.5 7

Software & Services Warayut Luangmettakul - 662 614 6214

Workpoint Ent. WORK TB O THB 43.50 56.00 29 505 0.8 0 (5) 4 46 37 1 (2) 11 59 54 Dec-14 622 99 54 549.7 76.1 38.2 24.7 98 107 0.5 9.0 5.9 7.0 20.8 (30)

Telecommunication Services

Colin McCallum - 852 2101 6514

AIS ADVANC TB O THB 200.0 280.0 40 16,549 36.5 0 (1) (12) (20) (18) 1 2 (5) (7) (1) Dec-14 9 7 12 16.5 15.1 14.1 12.6 100 97 6.6 84.0 12.7 4.8 9.6 218

DIF DIF TB O THB 12.50 14.20 14 2,021 2.7 0 1 2 17 17 1 4 9 30 34 Dec-14 na na na na na na na na na 7.3 na na 14.9 15.3 18 DTAC DTAC TB O THB 45.25 93.00 106 2,982 8.8 0 1 (28) (53) (54) 1 4 (20) (40) (37) Dec-14 (43) 28 23 10.0 17.7 13.8 11.2 87 100 5.7 18.6 3.3 2.0 6.0 171 Intouch INTUCH TB O THB 66.25 100.0 51 5,912 16.5 0 (1) (12) (16) (14) 1 2 (5) (2) 3 Dec-14 9 10 10 15.2 14.0 12.8 11.6 93 89 7.1 105.0 14.5 13.4 13.8 (18)

Jasmine JAS TB O THB 4.54 7.35 62 901 51.8 0 3 (24) (31) (34) 1 6 (17) (18) (17) Dec-14 347 (86) 5 9.9 2.2 15.9 15.2 429 70 40.5 89.4 1.7 0.2 0.8 (97) True Corp TRUE TB U THB 8.05 3.30 (59) 5,513 27.0 0 (1) (21) (27) (37) 1 2 (13) (14) (20) Dec-14 101 (90) 141 101.0 50.4 496.6 205.8 115 10 0.0 5.4 2.7 2.5 13.5 99 Sector* 31 33,879 0 (1) (15) (22) (22) 1 3 (7) (8) (5) Dec-14 20 (11) 13 17.4 14.5 16.4 14.5 113 91 6.5 33.9 4.7 3.8 9.9 79

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Thailand—valuation summary (continued) Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Transportation Timothy Ross / Muzhafar Mukhtar / Thaniya Kevalee / Warayut Luangmettakul - 65 6212 3337 / 60 3 2723 2084 / 66 2 614 6219 / 662 614 6214

AOT AOT TB N THB 318.0 335.0 5 12,644 32.3 0 (1) 3 13 12 1 2 11 26 29 Sep-15 15 13 6 28.8 24.9 22.1 20.9 102 101 1.6 16.0 3.8 9.2 15.4 (5) Asia Aviation AAV TB U THB 4.50 4.00 (11) 607 2.9 0 3 (5) 5 (3) 1 6 2 18 13 Dec-14 nm 5 (7) 192.1 13.0 12.4 13.3 110 96 2.2 8.4 1.1 0.9 6.1 20 BTS Group Holdings BTS TB O THB 9.15 12.20 33 3,038 7.6 0 (1) (6) (5) (9) 1 2 2 8 8 Mar-15 (25) 4 9 41.2 55.2 52.9 48.7 86 86 7.3 4.0 2.3 22.7 50.9 37

BTS Infra. Fund BTSGIF TB N THB 10.10 11.50 14 1,627 1.2 0 0 1 2 0 1 3 9 16 17 Mar-15 na na na na na na na na na 7.3 na na 13.2 13.7 (0) Bangkok Airways BA TB O THB 21.00 27.00 29 1,227 2.2 0 (3) 6 8 (8) 1 0 13 21 9 Dec-14 448 61 5 101.1 18.4 11.5 10.9 114 135 3.1 9.2 1.6 2.3 14.7 0 Bangkok Expressway BECL TB N THB 42.00 45.80 9 900 2.4 0 4 11 6 8 1 7 19 20 25 Dec-14 4 3 (8) 11.6 11.2 10.8 11.7 100 100 4.0 13.5 1.4 6.5 8.8 109

THAI THAI TB N THB 7.85 11.00 40 477 0.7 0 (2) (23) (46) (50) 1 1 (15) (33) (33) Dec-14 nm nm 15 nm nm 5.4 4.7 169 137 0.0 (4.3) 0.7 1.5 8.3 724 Sector* 12 20,520 0 (1) 1 7 4 1 2 9 21 21 Dec-14 na 32 8 nm 26.4 20.0 18.4 102 104 3.1 8.7 2.3 3.4 12.7 65

Utilities Wattana Punyawattanakul - 66 2 614 6215

EA EA TB U THB 23.30 20.00 (14) 2,419 3.3 0 (4) (3) (7) (10) 1 (1) 5 7 7 Dec-14 69 76 3 54.0 32.0 18.2 17.7 96 94 0.1 37.6 10.2 7.4 24.1 197 EGCO EGCO TB N THB 154.0 170.0 10 2,256 1.6 0 0 1 (8) (8) 1 4 8 5 9 Dec-14 (45) 88 4 10.6 19.2 10.3 9.8 73 97 4.1 5.7 1.1 9.7 20.1 104

GLOW GLOW TB O THB 81.00 116.0 43 3,298 1.9 0 (1) (4) (9) (11) 1 3 3 4 6 Dec-14 (16) 15 2 13.0 15.4 13.3 13.1 90 98 6.4 16.2 2.4 2.2 9.1 78 RATCH RATCH TB N THB 51.00 57.00 12 2,058 1.1 0 (1) (4) (13) (17) 1 2 3 0 0 Dec-14 (42) 91 2 11.8 20.2 10.6 10.4 71 97 4.5 5.9 1.2 1.5 10.5 16 SPCG SPCG TB O THB 21.80 29.00 33 561 0.7 0 (7) (9) (19) (17) 1 (4) (2) (6) (0) Dec-14 22 16 16 11.5 9.5 8.1 7.0 94 102 4.2 33.2 2.9 6.3 8.4 154

Sector* 16 10,592 0 (2) (3) (10) (12) 1 2 5 4 5 Dec-14 (23) 52 4 14.4 18.6 12.3 11.8 83 97 4.0 10.4 1.9 3.3 12.9 77

Country Average* SET 1,296 1,456 12 249,303 (1) (3) (8) (13) (17) Dec-14 6 21 15 16.7 15.7 13.1 11.4 90 96 3.5 11.9 1.8 1.4 8.3 55

Note: Prices are as of 9 December 2015, * Country/ sector aggregates are for the coverage above , Source: Company data, Thomson Financial IBES, Credit Suisse estimates

Vietnam—valuation summary Bberg Price Market Avg Absolute Performance Relative Performance FYE EPS growth P/E CS / Dvd ROE P/BV EV/ EV/ Net Debt/ daily con. EPS Yld Sales EBITDA Equity

Stock Ticker View Local Target Upside cap t/o (%) (%) Actual (%) (x) (%) (%) (%) (x) (x) (x) (%)

9 December 2015 (%) (USDm) 1d 1w 1m YTD 12m 1d 1w 1m YTD 12m T T+1 T+2 T+3 T T+1 T+2 T+3 T+1 T+2 T+1

Conglomerates Fahd Niaz - 65 6212 3035

Masan Group MSN VN N VND 72,000 80,000 11 2,393 1.2 0 1 (3) (13) (15) 2 3 5 (17) (17) Dec-14 (9) 32 27 26.9 29.6 22.4 17.6 96 95 0.0 11.5 2.2 2.6 14.0 102

Consumer Staples Farhan Rizvi - 65 6212 3036

VINAMILK VNM VN O VND 125,000 140,000 12 6,676 2.8 0 2 (2) 57 52 2 3 6 53 51 Dec-14 25 13 13 24.7 19.7 17.5 15.5 104 103 3.2 36.1 6.7 3.6 14.8 (29)

Real Estate Farhan Rizvi - 65 6212 3036

Vingroup VIC VN O VND 42,400 52,000 23 3,517 2.2 0 (0) (6) 12 12 2 1 1 8 10 Dec-14 (26) 97 45 17.3 23.3 11.9 8.2 103 122 0.0 9.7 2.0 3.2 15.5 55

Country Average* VNINDEX 565 649 15 12,586 (2) (2) (7) 4 2 Dec-14 1 38 27 22.4 22.1 16.0 12.6 102 108 1.7 18.1 3.3 3.2 14.8 46

Note: Prices are as of 9 December 2015

* Country/ sector aggregates are for the coverage above

Source: Company data, Thomson Financial IBES, Credit Suisse estimates

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Appendix I: Research published in the past week Global Analysts’ name Date

Emerging Markets Quarterly – Q1 2016 Berna Bayazitoglu 9 Dec

Global LNG – Are the contract wheels coming off? David Hewitt 9 Dec

Asia – Regional Analysts’ name Date

Jump-start Manish Nigam 3 Dec

Asia Semiconductor Sector – Credit Suisse US Tech Conference 2015: Day 2 highlights—demand mixed but

inventory improving

Randy Abrams 3 Dec

Asia Semiconductor Sector – CS Tech Conference 2015: Day 3 highlights—Mobile content gains prop up

slowing units

Randy Abrams 4 Dec

China Analysts’ name Date

China Basic Materials Sector – 2016 outlook: Supply solution Trina Chen 7 Dec

Shanghai Industrial Holdings – Deep discount with multiple catalysts ahead Baoying Zhai 7 Dec

Hong Kong Analysts’ name Date

Macau Gaming Sector – November GGR review: Revenue mix slightly disappoints but downside limited Kenneth Fong 4 Dec

Hong Kong Exchanges and Clearing – Market activity remains weak Arjan van Veen 8 Dec

India Analysts’ name Date

India Consumer Sector – GST panel recommendations—major positive for FMCG/paints, negative for cigarettes Arnab Mitra 7 Dec

Tata Motors Ltd – Shifting up a gear Jatin Chawla 7 Dec

India Financial Sector – Failed CDR now SDR Ashish Gupta 7 Dec

India Market Strategy – 2016: More "prefer local, be wary of global" Neelkanth Mishra 9 Dec

Strides Shasun Limited – Building blocks in place; returns to improve Chunky Shah 10 Dec

Indonesia Analysts’ name Date

Indonesia Cement Sector – Cementing the growth Ella Nusantoro 3 Dec

Indonesia Hospitals Sector – Chasing growth Anand Swaminathan 3 Dec

Indonesia Media Sector – Lights, camera...waiting for action Jahanzeb Naseer 7 Dec

Malaysia Analysts’ name Date

Malaysia Market Strategy – 2016 Outlook: Another challenging year Tan Ting Min 8 Dec

Pakistan Analysts’ name Date

Pakistan Market Strategy – Knocking on the doors of the EM club Farhan Rizvi 7 Dec

Pakistan Market Strategy – 2016 outlook: Time to 'walk the talk' Farhan Rizvi 10 Dec

Philippines Analysts’ name Date

Philippines Consumer Sector – Value creating growth Alvin Arogo 7 Dec

South Korea Analysts’ name Date

CJ CGV – Growing 4Dx business and China penetration Ray Kim 3 Dec

Singapore Analysts’ name Date

Singapore Market Strategy – 2016 Outlook: Domestic policies in focus Gerald Wong 3 Dec

Singapore Exchange – Downgrading to Neutral on continued weak volumes Arjan van Veen 7 Dec

Taiwan Analysts’ name Date

Taiwan Market Strategy – Enough global health to sustain growth? Chung Hsu 4 Dec

Siliconware Precision – S PIL Taichung fab could jump start SiP and fan-out earnings growth Randy Abrams, 10 Dec

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Disclosure Appendix

Important Global Disclosures

The analysts identified in this report each certify, with respect to the companies or securities that the individual analyzes, that (1) the views expressed in this report accurately reflect his or her personal views about all of the subject companies and securities and (2) no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this report.

The analyst(s) responsible for preparing this research report received Compensation that is based upon various factors including Credit Suisse's total revenues, a portion of which are generated by Credit Suisse's investment banking activities

As of December 10, 2012 Analysts’ stock rating are defined as follows:

Outperform (O) : The stock’s total return is expected to outperform the relevant benchmark*over the next 12 months.

Neutral (N) : The stock’s total return is expected to be in line with the relevant benchmark* over the next 12 months.

Underperform (U) : The stock’s total return is expected to underperform the relevant benchmark* over the next 12 months.

*Relevant benchmark by region: As of 10th December 2012, Japanese ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractiv e, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. As of 2nd October 2012, U.S. and Canadian as well as European ratings are based on a stock’s total return relative to the analyst's coverage universe which consists of all companies covered by the analyst within the relevant sector, with Outperforms representing the most attractive, Neutrals the less attractive, and Underperforms the least attractive investment opportunities. For Latin Ame rican and non-Japan Asia stocks, ratings are based on a stock’s total return relative to the average total return of the relevant country or regional benchmark; prior to 2nd October 2012 U.S. and Canadian ratings were based on (1) a stock’s absolute total return potential to its current share price and (2) the relative attractiveness of a stock’s total return potential within an analyst’s coverage universe. For Australian and New Zealand stocks, the expected total return (ETR) calculation includes 1 2-month rolling dividend yield. An Outperform rating is assigned where an ETR is greater than or equal to 7.5%; Underperform where an ETR less than or equal to 5%. A Neutral may be assigned where the ETR is between -5% and 15%. The overlapping rating range allows analysts to assign a rating that puts ETR in the context of associated risks . Prior to 18 May 2015, ETR ranges for Outperform and Underperform ratings did not overlap with Neutral thresholds between 15% and 7.5%, wh ich was in operation from 7 July 2011.

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Volatility Indicator [V] : A stock is defined as volatile if the stock price has moved up or down by 20% or more in a month in at least 8 of the past 24 months or the analyst expects significant volatility going forward.

Analysts’ sector weightings are distinct from analysts’ stock ratings and are based on the analyst’s expectations for the fundamentals and/or valuation of the sector* relative to the group’s historic fundamentals and/or valuation:

Overweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is favorable over the next 12 months.

Market Weight : The analyst’s expectation for the sector’s fundamentals and/or valuation is neutral over the next 12 months.

Underweight : The analyst’s expectation for the sector’s fundamentals and/or valuation is cautious over the next 12 months.

*An analyst’s coverage sector consists of all companies covered by the analyst within the relevant sector. An analyst may cover multiple sectors.

Credit Suisse's distribution of stock ratings (and banking clients) is:

Global Ratings Distribution

Rating Versus universe (%) Of which banking clients (%)

Outperform/Buy* 59% (32% banking clients)

Neutral/Hold* 28% (36% banking clients)

Underperform/Sell* 12% (25% banking clients)

Restricted 1%

*For purposes of the NYSE and NASD ratings distribution disclosure requirements, our stock ratings of Outperform, Neutral, and Underperform most closely correspond to Buy, Hold, and Sell, respectively; however, the meanings are not the same, as our stock ratings are determined on a relative basis. (Please refer to definitions above.) An investor's decision to buy or sell a security should be based on investment objectives, current holdin gs, and other individual factors.

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Important Regional Disclosures

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Investment principal on bonds can be eroded depending on sale price or market price. In addition, there are bonds on which investment principal can be eroded due to changes in redemption amounts. Care is required when investing in such instruments. When you purchase non-listed Japanese fixed income securities (Japanese government bonds, Japanese municipal bonds, Japanese government guaranteed bonds, Japanese corporate bonds) from CS as a seller, you will be requested to pay the purchase price only.

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