malaysia industry focus property - dbs bank | singapore 06-dec-10 uem sunrise bangi 463.5 268.5 13.3...

www.dbsvickers.com

ed: SGC / sa: WMT

New urbanization trend: Evolution of KL South •

KL south migration gaining traction, driven by MRT connectivity, strong population growth, and larger supply of affordable homes

• Kajang-Semenyih growth corridor the most promising hotspot within Greater KL given availability of cheap land bank and ready infrastructure

• KL-SG High Speed Rail - the wildcard to shift city center towards KL South

• Top beneficiaries: MKH (high-conviction Buy), Eco World (Initiate coverage), SP Setia (Upgrade to Buy)

Huge price disparity driving KL south migration. Escalating land prices within Greater KL have reduced the supply of affordable landed properties, which remain in demand. The MRT connectivity at Kajang (ready by 2017) and the ready infrastructure with several highways have made Kajang/Semenyih the natural choice for developers to expand township developments. This is supported by the availability of large tracts of land and these districts recording the among the strongest population growth in Selangor. The close proximity to KLCC and Putrajaya federal administrative centre will ensure KL South continues to thrive.

Follow the infrastructure. The terminal station of the proposed KL-SG High Speed Rail (HSR) link at Bandar Malaysia could accelerate migration to KL south given the more integrated public transport system by then. The MRT Line 2 which has been approved by the cabinet could link southward to Putrajaya, which would drive more development in Kajang/Semenyih.

Top pick: MKH. Its large exposure to affordable housing and landed residential projects in its stronghold Kajang-Semenyih growth corridor (490 acres), coupled with its low land cost at prime locations, will make MKH the largest beneficiary of the KL south migration.

ESESESES

KLCIKLCIKLCIKLCI : : : : 1,872.971,872.971,872.971,872.97

Analyst QUAH He Wei, CFA +603 2604 3966 [email protected]

STOCKS

Source: AllianceDBS

Increasing property sales and prices

100

120

140

160

180

200

220

0

20

40

60

80

100

120

140

160

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Yr 2000=100Yr 2000=100Yr 2000=100Yr 2000=100RMbnRMbnRMbnRMbn

Value of property transaction house price index

Source: AllianceDBS, NAPIC

DBS Group Research . Equity DBS Group Research . Equity DBS Group Research . Equity DBS Group Research . Equity 21 Jul 2014

Malaysia Industry Focus

Property Refer to important disclosures at the end of this report

Price Price Price Price Mkt CapMkt CapMkt CapMkt Cap Target PriceTarget PriceTarget PriceTarget Price Performance (%)Performance (%)Performance (%)Performance (%)

RMRMRMRM US$mUS$mUS$mUS$m RMRMRMRM 3 mth3 mth3 mth3 mth 12 mth12 mth12 mth12 mth RatingRatingRatingRating

UEM Sunrise Bhd 2.10 2,863 2.20 (11.8) (30.9) HOLD SP Setia 3.52 2,788 4.10 20.6 5.4 BUY Sunway Bhd 3.18 1,722 3.70 2.6 (4.2) BUY Eastern & Oriental Bhd

2.99 1,039 3.80 19.6 51.0 BUY MKH Berhad 4.01 528 5.85 22.1 123.0 BUY Eco World 5.08 404 6.00 (1.0) 605.6 BUY Wing Tai Malaysia Bhd

2.15 218 2.25 (9.7) (16.3) HOLD Hunza Properties 2.00 143 2.20 0.0 2.0 HOLD

Industry Focus

Property

QUAH He Wei, CFA +603 2604 3966

[email protected]

Table of Contents

Why KL South migration? 3 Map of improved public transport connectivity 6 Catalyst from major infrastructure projects 7 Malaysia property market remains healthy 9 Investment strategy 12 Risks 13 Peer comparison 14 Stock Profiles 17

MKH (High-conviction Buy) 18

SP Setia (upgrade to Buy) 20

Eco World (coverage initiation) 22

MICA (P) 043/10/2009MICA (P) 043/10/2009MICA (P) 043/10/2009MICA (P) 043/10/2009

Industry Focus

Property

Why KL South migration?

Escalating land prices within Greater KL have reduced the

supply of affordable landed properties, for which there is still

strong demand. The connectivity of MRT into Kajang (ready by

2017) and the ready infrastructure with several highways, have

made Kajang/Semenyih the natural choice for developers to

expand township developments, with the availability of large

tracts of land bank and the area recording one of the strongest

population growth in Selangor (26% of total transactions).

Greater KL/Klang Valley remains the core of the government’s

economic transformation program – the government wants to

grow the Greater KL population to 10m by 2020 from an

estimated 7m currently. This means the Greater KL population

has to grow by 5.2% p.a. on average, much higher than the

national average of ~1.4%. If the goal materializes, this would

translate into stronger demand for housing of 80k units p.a. in

Greater KL alone vis-à-vis 78k units completed for the whole

country in 2013.

Greater KL – economic growth driver

Population

(m)

Density

(ppl/sq km) Urbanisation

Selangor 5.46 674 91.4%

KL 1.67 6,891 100%

Putrajaya 0.07 1,478 100%

Malaysia 28.3 86 71%

Source: AllianceDBS, Department of Statistics

Greater KL prices much higher than national average

-

100

200

300

400

500

600

700

800

900

2006 2007 2008 2009 2010 2011 2012 2013

RM'000RM'000RM'000RM'000

KL Putrajaya Selangor Msia


Housing demand in Greater KL is likely to remain healthy going

forward, but buyers will be picky because of steep pricing, no

thanks to a slew of cost-push factors including inflationary

pressure, subsidy rationalisation, and implementation of

minimum wages. Faced with the risk of margin compression,

property developers will naturally look to landbank in areas

where land cost is relatively low, and there is ready

infrastructure and a growing population.

The construction of the MRT Sg. Buloh-Kajang line has drawn

interest to the Kajang/Semenyih growth corridor which is

located within the Hulu Langat district, Selangor, because of

the availability of vast land bank there. The 51-km MRT line will

have 31 stations including 16 with park-and-ride facilities and

four interchange stations. The line will link Sungai Buloh in the

northwest and Kajang in the southeast.

Indeed, the much-needed catalyst – three MRT stations within

Kajang - has driven several public-listed property developers to

grab land in the area. Other major developers such as SP Setia,

Mah Sing, UEM Sunrise, Eco World, and Tropicana, have also

jumped on the bandwagon as the areas gains recognition as

strategic townships at a relatively comfortable distance from KL

city center, that offer affordable housing and ready

infrastructure:

i) Education hub: there are several education institutions in

the vicinity, including New Era University College, Universiti

Kebangsaan Malaysia, Universiti Putra Malaysia,

Nottingham University campus, Universiti Tenaga Malaysia,

the German Malaysia Institute, and the Australia

International School;

ii) Easy access with the opening of several highways that link

Kajang/Semenyih to other major townships within Klang

Valley. These include the Kajang SILK Highway and

Persiaran Kajang-Semenyih. Other links to the area are

Lebuhraya Utara Selatan, Lebuhraya Cheras-Kajang and

Lebuhraya Klang Selatan; and

iii) Strong population growth driven by urban migration.

According to Department of Statistics data, Kajang’s

population was close to 800,000 in 2010, or 15% of

Selangor’s population of 5.4m. The local town council

(MPKj) expects Kajang’s population to exceed 1m by 2013.

Industry Focus

Property

Public-listed developers rushing to buy land in Semenyih/Kajang

Da teDa teDa teDa te Buye r Buye r Buye r Buye r Loca tionLoca tionLoca tionLoca tion RMmRMmRMmRMm RMpsfRMpsfRMpsfRMpsf Rema rksRema rksRema rksRema rks

02-Jul-14 Eco World Semenyih 492.7 225.3 10.5 near Bandar Rinching

25-Apr-14 Eco World Semenyih 1,073.1 950.0 20.3 near Bandar Rinching

21-May-12 Mah Sing Bangi 412.0 333.3 18.6 3.2km away from UKM

01-Mar-12 Knusford Semenyih 13.3 14.2 24.5 near Taman Kajang Perdana and Taman Jelok Impian

03-Oct-11 SP Setia Semenyih 673.3 381.3 13.0 13km south of Kajang in Rinching

08-Sep-11 Ireka Corp Kajang 20.6 22.4 25.0 within Bukit Angkat Industrial Zoning

05-Sep-11 Tropicana Corp Semenyih 198.5 228.0 26.4 Kajang Hills

06-Dec-10 UEM Sunrise Bangi 463.5 268.5 13.3 near Bandar Seri Putra

Siz e Siz e Siz e Siz e

(a c re )(a c re )(a c re )(a c re )

Source: AllianceDBS, Companies

Land prices in KL Northern areas such as Sg. Buloh, Petaling

Jaya and Kota Damansara have long been valued at a premium

to KL Southern areas. But the MRT line will change the

dynamics, it will revitalise the Kajang/Semenyih corridor. In

fact, land prices in Kajang/Semenyih have almost tripled

compared to 3-4 years ago, albeit coming from a low base.

Huge disparity in land price between North and South of KL for parcels near MRT stations

AreaAreaAreaArea

Es t. land Es t. land Es t. land Es t. land

pricepricepriceprice

Es t. Es t. Es t. Es t.

property property property property

ASPASPASPASP Deve loperDeve loperDeve loperDeve loper

RMps fRMps fRMps fRMps f RMps fRMps fRMps fRMps f

Sg. Buloh 200-300 600-700

Kota Damansara 200-300 600-700 Meda Inc

1300-1800 1450 Guoco Land

Dataran Sunway 350-450 1000-1200 Tropicana

Kajang city 80-100 350-450 MKH

Mah Sing,

Selangor Dredging

Pusat Bandar

Damansara

Source: AllianceDBS, Various

We compare Kajang (in Hulu Langat district) and Sg. Buloh (in

Petaling district) because these two areas have similar

demographics and public transport connectivity. Kajang and

Sg. Buloh are among the most populous districts in Selangor,

and the existing KTM railway runs through both areas.

Similarly, the terminal stations of the MRT line which will be

ready by 2017 will be located at Sg. Buloh and Kajang.

However, there is a stark contrast in property prices between

the two areas, in favour of the northern region. We believe the

completion of the MRT Sg Buloh-Kajang Line will reduce the

disparity as property buyers will likely decide mainly on price

then.

Also, property affordability is increasingly an issue for the

general public with prices surging in recent years and demand

outpacing new supply of houses by a large margin, particularly

for low-to-medium cost units.

Population in Selangor

Dis trict in Se langorDis trict in Se langorDis trict in Se langorDis trict in Se langor

Gombak 668,694

Klang 842,146

Kuala Langat 220,214

Kuala Selangor 205,257

Petaling 1,765,495

Sabak Bernam 103,709

Sepang 207,354

Hulu Langat 1,138,198

Ulu Selangor 194,387

Source: AllianceDBS, Department of Statistics

Industry Focus

Property

Hulu Langat property prices catching up with Petaling

100

120

140

160

180

200

220

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2000=1002000=1002000=1002000=100

Selangor Petaling Hulu Langat


Wide disparity for terraced house price

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

650,000

700,000

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

RM/unit RM/unit RM/unit RM/unit

Petaling Hulu Langat KL


Hulu Langat terraced house price growth outperform

-5%

0%

5%

10%

15%

20%

25%

30%

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

Petaling Hulu Langat KL


We noticed Hulu Langat district terrace house prices have

consistently outperformed those in KL and Petaling district,

which is most likely due to the huge price disparity. Based on

National Property Information Center (NAPIC) 1Q14 data,

average price of terrace houses in KL and Petaling district are

121% and 65% higher than those in Hulu Langat. Therefore,

we believe the huge price difference is expected to drive more

property buying interest to Kajang/Semenyih growth corridor

where lifestyle gated-and-guarded developments have been

mushrooming due to the strong demand.

Indeed, since the announcement of the MRT Sg. Buloh-Kajang

Line, demand for landed properties in Kajang/Semenyih has

been rising. Property sales have been resilient, driven by the

strong population growth in the second most populous district

in Selangor. The KL South migration is imminent; major

developers in Kajang/Semenyih rushing to buy land there

reinforces our view that this will be one of the best hotspots in

the years to come, possibly more visible when the MRT stations

are completed by 2017.

Hulu Langat properties sell like hot cake

La unchLa unchLa unchLa unch Pro je c tPro je c tPro je c tPro je c t De ve lope rDe ve lope rDe ve lope rDe ve lope r

Ta ke Ta ke Ta ke Ta ke

upupupup TypeTypeTypeType

Pric e / Pric e / Pric e / Pric e /

uni tuni tuni tuni t

Sep13 Southville City Mah Sing >90% high rise >280k

Oct13 Setia Eco Hill SP Setia >90% landed >450k

Nov13 Diamond City Country Garden-Mayland>80% landed >900k

Feb14 Tropicana Heights Tropicana >90% landed >740k

Apr14 Saville Kajang MKH >80% high rise >290k

May14 Eco Majestic Eco World >80% landed >590k

Source: AllianceDBS, various

Developers are still launching high-priced products and fewer

affordable projects, as land prices within Klang Valley have

risen sharply that it is no longer feasible to launch affordable

housing. The MRT network reaching out to Kajang has also

reshaped public perception on residential projects in

Kajang/Semenyih; they were previously associated with long

travel distance from KL city center.

The availability of landed properties in Kajang/Semenyih at

lower prices than in other established townships such as

Petaling Jaya and Kota Damansara and good public transport

connectivity, appeal most to the general public. An additional

advantage is the close proximity to Putrajaya federal

administrative center, which has contributed to robust property

sales in the area. Upgraders from Cheras, Putrajaya and

Cyberjaya also naturally look at Kajang/Semenyih when it

comes to buying gated and guarded residential projects with

lifestyle amenities.

Industry Focus

Property

Ripe for KL south migration with improved infrastructure

KL-SG HSR

terminal station

Possible MRT

Line 2

alignment

Possible MRT Line

3 (circle line)

allignment

LRT extension

alignment (under

construction)

KLCC

MRT Line 1

(under

construction)

Source: Ho Chin Soon Research, AllianceDBS

Industry Focus

Property

More catalyst from major infrastructure projects

MRT Line 2 gets green light from federal government. MRT Line 2 gets green light from federal government. MRT Line 2 gets green light from federal government. MRT Line 2 gets green light from federal government. This line

will link Sg. Buloh and Putrajaya in the South. We expect the

contracts to be awarded by 2H15. Although the alignment has

yet to be finalised, proposals to extend the line to areas like

Serdang and Putrajaya could help to drive KL South migration.

The combined coverage of MRT Line 1 and 2 will create a huge

catchment area to further spur property development in the area.

Malaysia’s most modern public transport mode will enable the

residents to reach major destinations within Greater KL with

relative ease. The appeal of better quality of life at relatively

lower price in the Kajang/Semenyih growth corridor will

transform the property landscape there.

Transit-oriented developments (TODs) are also positioned to take

off strongly with the extension of MRT connectivity to KL South.

The convenience of TODs has not been fully appreciated by the

public vis-à-vis property buyers in Singapore and Hong Kong, as

this single largest infrastructure project is a first for Malaysia.

High High High High SSSSpeed peed peed peed RRRRailailailail. The ambitious High-Speed Rail (HSR) project due

for completion by 2020 would reduce the journey from

Singapore to Kuala Lumpur to just 90-minutes, from up to 4.5

hours currently. The location of the terminal in Singapore has yet

to be finalised, but it has been reported Bandar Malaysia would

house the terminal station in Malaysia.

There are plans for the 330km line to make stops in Negri

Sembilan, Malacca and Johor, which could extend the journey

time to 2 hours, but this is still preliminary. We understand the

Malaysian government is conducting technical surveys, socio-

economic analyses on the proposed stations, and the proposed

alignment, among others. The HSR service is expected to boost

travel between the two countries and result in significant

economic gains for both.

The decision to place the Malaysian terminal at Bandar Malaysia

in Sungai Besi, at the current site of the Royal Malaysian Air Force

base, is a welcome surprise for KL South migration, as there

could be spillover effects on the Malaysian property sector.

The positive impact of an integrated HSR and MRT Line 1 and 2

in the future is likely to benefit Kajang/Semenyih the most, since

it is coming from a relatively lower base than more established

townships in Greater KL.

Industry Focus

Property

Developers with exposure to KL South

Deve loperDeve loperDeve loperDeve loper ProjectProjectProjectProject LandLandLandLand

% of % of % of % of

land land land land

bankbankbankbank LocationLocationLocationLocation GDVGDVGDVGDV

% of % of % of % of

tota l tota l tota l tota l

GDVGDVGDVGDV

% of % of % of % of

RNAVRNAVRNAVRNAV RemarksRemarksRemarksRemarks

(acre)(acre)(acre)(acre) (RMm)(RMm)(RMm)(RMm) (RMm)(RMm)(RMm)(RMm)

MKH Various 491 44%

Kajang/Semenyih, Cheras,

Seri Kembangan 5,087 69% 46%

Various projects including Kajang 2,

Pelangi Semenyih, Hillpark Homes

Tropicana Tropicana Heights 199 10% Kajang 1,456 2% n.a. township development

SHL Bandar Sg. Long 328 55% Sg. Long n.a. n.a. 50% Include 160-acre golf course@Sg. Long

SP Setia Setia EcoHill 1,447 30% Bandar Rinching, Semenyih 7,360 11% 6% township development

Eco World EcoMajestic 1,566 32% Bandar Rinching, Semenyih 14,640 31% 14% township development

Hua Yang

One South,

Mines South 22 3% Seri Kembangan 1,035 n.a. n.a. mixed development

UEM Sunrise

Serene Heights,

Sinaran Hills 513.6 7% Bangi, Kajang 3,270 4% 2% residential projects

Mah Sing Southville City 428 15% Bangi 8,300 32% n.a. township development

Source: AllianceDBS, Various, Companies

Our ground checks revealed that property projects within

Kajang/Semenyih have been doing exceptionally well. The

presence of established developers such as SP Setia, MKH,

Tropicana, Eco World and Mah Sing, supports our optimistic

outlook for property developments in an area that had been

overlooked by property buyers previously because of perceived

haphazard planning, lack of quality products, and weaker

infrastructure.

Gated and guarded landed properties are the main attractions

for genuine buyers/upgraders because of relatively more

attractive pricing. This type of products are increasingly beyond

the affordability of young working adults in other prime areas

of Greater KL, as developers price in rising construction costs

and land prices.

The Kajang/Semenyih/Bangi areas provide golden opportunity

for developers to tap into the strong demand for landed

properties, because of the availability of large tracts of land

bank in the area. This is virtually the last area within Greater KL

that is still available at reasonable prices, yet offer strong

growth prospects as the improving infrastructure and facilities

would enhance its appeal.

Kajang/Semenyih will be the next hotspot going forward. For

property developers, the resilient demand for landed properties

will create a more stable market vis-à-vis high-end condo

projects which are heavily dictated by market sentiment.

Typical bread-and-butter terrace houses have been selling well

over the years as supply and demand are driven by sector

fundamentals.

We understand that MKH, one of the oldest names in Kajang/Semenyih, has never employed the developers’ interest bearing scheme (DIBS) incentive to sell their products, even during the down cycle when many developers in town introduced that to address slowing sales. This is strong testament to the booming yet resilient property sales in the growth corridor, the dynamics greatly enhanced by the MRT connectivity.

Industry Focus

Property

Malaysian property market remains healthy

Despite the relatively weaker property sentiment due to

tightening measures, property prices remain at record highs as

supply continue to lag demand. Property demand in Malaysia is

supported by favourable demographics - young and growing

population (and labour force), increasing urbanisation, and

shrinking household size. The Malaysian economy is expected to

grow by 5.3% in 2014 (vs 4.7% in 2013), while unemployment

rate is healthy at 3%.

Relatively healthy economic indicators

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

-10%

-5%

0%

5%

10%

15%

20%

2008 2009 2010 2011 2012 2013

GDP growth (LHS) GNI growth (LHS) Savings % (RHS)

Source: AllianceDBS, BNM

Lower impaired loan ratio despite rising household debt

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

0

500

1,000

1,500

2,000

2009 2010 2011 2012 2013

%%%%RMbnRMbnRMbnRMbn

HH debt (LHS)

HH financial asset (LHS)

impaired loan ratio of HH sector (RHS)


There are concerns rising household debt could pose a serious

threat to the economy, but more stringent lending guidelines

adopted by financial institutions could help to ease the pressure.

Household debt also grew at a slower pace of 11.7% in 2013,

compared to 13.5% in 2012. We believe the risk of a property

bubble is well contained by strong fundamentals in Malaysia’s

economy and a robust banking system. Overall household

financial health is stable as indicated by 45% household gearing

and a gross national savings-to-gross national income ratio of

31%.

Healthy gross domestic savings

0%

10%

20%

30%

40%

50%

60%

Indonesia Singapore Thailand Malaysia Philippines

Source: AllianceDBS, World Bank

Meanwhile, non-performing loans for residential property

mortgage have been improving over the years. The gross

residential mortgage loan NPL ratio has improved from 3.5% in

2010 to 1.5% recently. We understand banks have been more

cautious with loan approvals, as some property buyers have been

facing difficulty in getting mortgage loans. Nevertheless, loan

applications and approvals have started to pick up in recent

months.

Mortgage NPLs trending down

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

(4)

(2)

0

2

4

6

8

10

12

14

16

Dec-04 Mar-06 Jun-07 Sep-08 Dec-09 Mar-11 Jun-12 Sep-13

RMbnRMbnRMbnRMbn

Gross NPL Chg NPL Mortgage NPL%


Industry Focus

Property

Affordability supported by cheap financing

-

1

2

3

4

5

6

7

8

-

100

200

300

400

500

600

700

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

(x)(x)(x)(x)RM'000RM'000RM'000RM'000

affordable house price (LHS) affordability ratio (RHS)


Despite the rapid increase in property prices in recent years,

affordability remains healthy thanks to the low financing rates

and rising household income. We note that 87% of the value of

residential property transactions in 2013 were priced below

RM500,000, and Malaysia still has the lowest house price-to-

income ratio in the region.

Malaysia’s house priceMalaysia’s house priceMalaysia’s house priceMalaysia’s house price----totototo----income still lowest in the regionincome still lowest in the regionincome still lowest in the regionincome still lowest in the region

Source: URA, Singstat, Demographia, Bank of Thailand, BNM

The recent interest rate hike of 25 basis points is unlikely to cause

a major slowdown in the property market. A 25 basis point

increase in the base lending rate would lift a 30-year RM500k

mortgage loan instalment payment by RM74/month, an increase

of only 3% over the current monthly instalment of ~RM2,445.

Nevertheless, sentiment may be affected temporarily after rates

are adjusted by commercial banks.

The rate hike was due to BNM concern over the risk of broader

economic and financial imbalances that could undermine the

growth prospects of the Malaysian economy. Should there be

more interest rate hike in tandem with the growing economy, it

is unlikely to adversely affect property sales growth judging by

historical trend though consumer sentiment may be affected.

We believe property prices are likely to remain steady at current

levels, after the steep appreciation over the past few years. The

supply deficit will continue to support prices as the young labour

force (60% below 40 years old) will be seeking residential

properties. Newly completions have ranged from 65k-80k units

p.a. in recent years, while Malaysia household formation has

exceeded 100k p.a., underpinning strong demand for properties.

Demand is further supported by easy access to credit.

Property prices reaching all-time high

100

120

140

160

180

200

220

240

1Q00

4Q00

3Q01

2Q02

1Q03

4Q03

3Q04

2Q05

1Q06

4Q06

3Q07

2Q08

1Q09

4Q09

3Q10

2Q11

1Q12

4Q12

3Q13

2000=1002000=1002000=1002000=100

All Terraced High-rise Detached Semi-D


Healthy inventory levels

KLKLKLKL Se langorSe langorSe langorSe langor JohorJohorJohorJohor PenangPenangPenangPenang OthersOthersOthersOthers Ma lays iaMa lays iaMa lays iaMa lays ia

Existing Stock 424,324 1,358,054 705,929 377,942 1,852,285 4,718,534

% of Msia 9% 29% 15% 8% 39% 100%

Completions 1,281 19,003 12,402 12,583 32,996 78,265

% of stock 0% 1% 2% 3% 2% 2%

Incoming supply 52,714 149,644 118,191 64,482 311,526 696,557

% of stock 12% 11% 17% 17% 17% 15%

total unsold 8,567 11,935 15,385 2,259 27,429 65,575

Unsold/stock 2.0% 0.9% 2.2% 0.6% 1.5% 1.4%


Industry Focus

Property

Rising construction cost

80

90

100

110

120

130

140

150

160

170

180

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

Source: AllianceDBS, Langdon Seah

Cost-push factors such as rising construction cost and the

implementation of 6% Goods & Services Tax (GST) effective

Apr15 will continue to create upward pressure on selling prices.

New tenders for construction contracts have been seeing higher

quotations, partly due to intense competition for raw materials

and labour with the rollout of mega infrastructure projects in

Malaysia. We understand property developers have started to

factor in GST in selling prices for new projects.

The sticky prices could translate into softer demand for certain

properties, but demand for landed properties is likely to remain

resilient although there will be limited supply of affordable units

in view of the escalating land prices within Greater KL. The

scarcity of large tracts of land bank in prime areas has also

resulted in developers opting to build high-rise projects to

optimize yields (gross development profit/acre).

Other challenges include the increasing compliance cost. These

include bumi discount/quota (5-15%/30-60% depending on

location and land status), low-medium cost housing quota (30-

50% depending on land size), and government reserve/public

area, which have led to cross-subsidy of products. We

understand developers incur ~RM100k losses/unit for each low-

cost house built because the RM42k cap implemented by the

government has stayed despite rising construction costs.

Industry Focus

Property

Investment strategy

Despite generally weaker sentiment in the property market,

property sales in Kajang/Semenyih growth corridor has been

outperforming those in more established townships within

Greater KL. We like the mass-market township developments

in Kajang/Semenyih, for which demand will remain resilient

with the improvements to overall infrastructure as well as

public transport connectivity.

MKH and Eco World will be among the largest beneficiaries of

the booming Kajang/Semenyih growth corridor, as the

potential GDV from their land bank account for 69% and

31%, respectively, of their overall GDV in the pipeline.

Promising sales at their projects will underpin long-term

earnings visibility.

The undisputed advantage of cheaper land cost - to supply

landed properties - in the area will ensure property and land

prices converge rapidly towards average prices in KL. This

could create a multi-year re-rating for both MKH and Eco

World which enjoy strong branding.

TopTopTopTop/High conviction/High conviction/High conviction/High conviction pick: MKHpick: MKHpick: MKHpick: MKH. The company will be the

largest beneficiary of the upcoming MRT connectivity given its

high exposure to the booming Kajang/Semenyih growth

corridor. MKH is a rare gem that offers both deep value and

strong earnings growth

MKH has an unrivalled competitive advantage in

Kajang/Semenyih property development because of their low

land cost of RM10psf (vs peers’ >RM20psf). Affordable homes

- MKH’s stronghold - remains the key theme for the property

sector. Their large tract of prime property land bank in

Kajang/Semenyih (490 acres) makes them the prime

beneficiary of rising land prices there. Scarcity of land within

Kajang also provides a distinct advantage for MKH’s future

launches, which are expected to see strong demand and fetch

premium pricing.

MKH is on track to achieve its record high property sales target

of RM800m for FY14 (vs RM580m in FY13). It booked

RM410m sales in 1HFY14, of which RM96m is pre-sale

booking. This has yet to include overwhelming sales from

Saville@Kajang (RM280m GDV) which has achieved impressive

80% take-up although the project was only launched in April.

As a result, unbilled sales is at an unprecedented RM602m as

at March, or 1.3x its FY13 property revenue.

Record high unbilled sales

0

100

200

300

400

500

600

700

FY10 FY11 FY12 FY13 2QFY14

RMmRMmRMmRMm

unbilled sales

Source: AllianceDBS, Company

Initiate coverageInitiate coverageInitiate coverageInitiate coverage:::: Eco World Eco World Eco World Eco World ((((BUY, RM6.BUY, RM6.BUY, RM6.BUY, RM6.00000 TP)0 TP)0 TP)0 TP). Eco World has

been gaining prominence in Malaysia’s property market, as the

new company is backed by a solid ex-SP Setia management

team that have a proven and impeccable track record during

their tenure in SP Setia. The company is in the midst of a major

corporate exercise to be completed in 3Q14, which will turn

the company into a large scale developer with 4.4k acres of

land bank that could generate RM43.5bn GDV.

Eco World has direct exposure to the Kajang/Semenyih growth

corridor through 1,566 acres of land bank in Semenyih which

has the potential to generate RM14.6bn GDV. Management’s

impressive execution track record is the strongest confidence

bestowed by the general public towards its property projects.

Eco World’s EcoMajestic@Semenyih received overwhelming

response for the 1st phase, Cradleton, where more than 2,000

property buyers queued on launch day to grab the 612 units

available for sale at end May.

Industry Focus

Property

Eco World may bring forward subsequent phases of

EcoMajestic in view of strong demand for its landed products,

despite the premium pricing starting at RM586k/unit for a

terrace house. Property sales should gain momentum as more

of its eco-themed projects are introduced to the market.

The company is on track to achieve its RM5bn sales target over

FY14-15 given its presence in Malaysia’s property hotspots in

the Klang Valley, Iskandar Malaysia, and Penang. We project

the company will achieve 3-year earnings CAGR of 102% over

FY13-16F

Land bank upon completion of corporate exercise


SP SetiaSP SetiaSP SetiaSP Setia (Upgrade(Upgrade(Upgrade(Upgrade to Bto Bto Bto BUY,UY,UY,UY, TP TP TP TP RM4.10RM4.10RM4.10RM4.10).).).). SP Setia will be one of

the beneficiaries of the rising prominence of KL South, through

it 1,447 acres of undeveloped land bank in Semenyih which

was acquired in 2011 at a blended cost of RM10.6psf. Setia

Eco Hill launched in Oct13 was met with astounding success;

the project had more than 26,000 registrants for 760 units on

offer during the launch. We understand the ballot numbers

were snapped up within five hours, and over 2,000 people

turned up for the sales launch.

The company’s fundamentals remain solid given its record high

unbilled sales of RM11.2bn, which translates into 4x FY13

property development revenue. Therefore, we project SP Setia

to deliver 3-year earnings CAGR of 18%. Also, SP Setia

remains one of the largest developers in Malaysia with sizeable

prime land bank that was acquired at relatively lower prices

few years ago.

SP Setia’s prime 4,782-acre land bank (RM71bn GDV) has low

holding cost, which means the company stands to benefit the

most the steep land price appreciation in recent years.

Therefore, SP Setia is poised to benefit from resilient demand

for its established township developments in Setia Alam (712

acres undeveloped; RM3.50psf land cost) and Setia Eco Hill

(1,447 acres; RM10.6psf) which should continue to see strong

sales.

We believe the concern over SP Setia’s management departure

has been priced in and the overhang has now been removed

after the departure of its CEO. Re-rating catalyst could come

from potential M&A exercise which is likely to be done above

put option exercise price granted to Tan Sri Liew Kee Sin at

RM3.95/share.

Risk

Margin compression.Margin compression.Margin compression.Margin compression. Developers may not be able to pass

through to property buyers the incremental costs resulting

from rising land prices and construction costs, as the market

may not be receptive of higher selling prices in view of record

high house prices. We understand there is also labour shortage

in some areas such as Iskandar Malaysia where the situation is

more severe, which will result in contractors demanding higher

quotations for construction works.

Slowing salesSlowing salesSlowing salesSlowing sales. Property sales may slow down in certain

locations as property buyers could be deterred by the high

entry price and tightening measures, with banks adopting

more cautious lending practice for mortgage loans.

Rising householRising householRising householRising household debtd debtd debtd debt. The unprecedented household debt

level could strain purchasing power and demand for future

properties, in view of rising inflationary pressure and the

impending interest rate hike which will lower disposable

incomes.

Enla rge d la nd ba nkEnla rge d la nd ba nkEnla rge d la nd ba nkEnla rge d la nd ba nk Ac re sAc re sAc re sAc re s GDV (RMm)GDV (RMm)GDV (RMm)GDV (RMm)

Eco Ce ntra lEco Ce ntra lEco Ce ntra lEco Ce ntra l Saujana Glenmarie 25.9 90

Eco Sky 9.6 974

Eco Majestic 1073.1 11,144

Eco Sanctuary 308.7 8,000

1417.31417.31417.31417.3 20,20820,20820,20820,208

Eco SouthEco SouthEco SouthEco South Eco Botanic 325.1 3,794

Eco Spring 613.8 5,871

Eco Tropics 743.6 3,400

Eco Business Park 1 612 3,799

Eco Business Park 2 383.6 3,009


2 ,9262,9262,9262,926 21,87321,87321,87321,873

Eco NorthEco NorthEco NorthEco North Eco Terraces 12.8 338

Eco Meadows 75.7 916

Eco Macalister 1.1 190

89.689.689.689.6 1,4441,4441,4441,444

4 ,4334,4334,4334,433 43,52543,52543,52543,525

Industry Focus

Property

Peer comparison

MMMMarket arket arket arket capcapcapcap

PEPEPEPE

PBPBPBPB

ROEROEROEROE CompanyCompanyCompanyCompany FYEFYEFYEFYE RatingRatingRatingRating PricePricePricePrice TPTPTPTP P/RNAVP/RNAVP/RNAVP/RNAV CY14CY14CY14CY14 CY15CY15CY15CY15 CY14CY14CY14CY14 CY15CY15CY15CY15 CY14CY14CY14CY14 CY15CY15CY15CY15

UEM Sunrise Dec Hold 2.10 2.20 9,529 52% 17.5 24.1 1.5 1.4 8% 6%

SP Setia Oct Buy 3.52 4.10 8,876 40% 18.8 13.9 1.5 1.5 8% 10%

Sunway Dec Buy 3.18 3.70 5,482 23% 10.9 9.1 1.0 0.9 9% 10%

E&O Mar Buy 2.99 3.80 3,307 33% 30.0 20.7 2.2 2.0 7% 10%

MKH Sep Buy 4.01 5.85 1,682 33% 11.3 7.9 1.5 1.3 14% 17%

Eco World Oct Buy 5.08 6.00 1,287 32% n.m. 34.1 1.3 1.3 1% 4%

Wing Tai M'sia Jun Hold 2.15 2.25 676 52% 7.6 5.7 0.6 0.6 8% 10%

Hunza Jun Hold 2.00 2.20 456 59% 18.6 8.1 0.5 0.5 3% 7%

AverageAverageAverageAverage 40%40%40%40% 16.416.416.416.4 15151515.5.5.5.5 1.31.31.31.3 1.21.21.21.2 7%7%7%7% 9%9%9%9%

MKH PE band MKH PB band

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

Eco World PE band Eco World PB band

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Oct-11

Apr-12

Oct-12

Apr-13

Oct-13

Apr-14

(x)

Average

+1 Std dev

+2 Std dev

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Oct-11

Apr-12

Oct-12

Apr-13

Oct-13

Apr-14

(x)

+1 Std dev

+2 Std dev

Average

Industry Focus

Property

SP Setia PE band SP Setia PB band

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev

10.0

12.0

14.0

16.0

18.0

20.0

22.0

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev

1.0

1.2

1.4

1.6

1.8

2.0

2.2

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

UEM Sunrise PE band UEM Sunrise PB band

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev1.0

1.5

2.0

2.5

3.0

3.5

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

Wing Tai Malaysia PE band Wing Tai Malaysia PB band

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

Industry Focus

Property

Hunza Properties PE band Hunza Properties PB band

Average

+1 std dev

+2 std dev

-1 std dev

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev

0.2

0.3

0.3

0.4

0.4

0.5

0.5

0.6

0.6

0.7

0.7

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

E&O PE band E&O PB band

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev

0.0

10.0

20.0

30.0

40.0

50.0

60.0

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

Average

+1 std dev

+2 std dev

-1 std dev

-2 std dev

0.0

0.5

1.0

1.5

2.0

2.5

Jan-10

Jul-10

Jan-11

Jul-11

Jan-12

Jul-12

Jan-13

Jul-13

Jan-14

Jul-14

(x)

Sunway PE band Sunway PB band

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Aug-11

Feb-12

Aug-12

Feb-13

Aug-13

Feb-14

(x)

+2 std dev

+1 std dev

-1 std dev

-2 std dev

Average

0.5

0.6

0.7

0.8

0.9

1.0

1.1

1.2

Aug-11

Feb-12

Aug-12

Feb-13

Aug-13

Feb-14

(x)

+2 std dev

+1 std dev

-1 std dev

-2 std dev

Average

Source: AllianceDBS, Companies, Bloomberg L.P.

Industry Focus

Property

Stock ProfilesStock ProfilesStock ProfilesStock Profiles

www.dbsvickers.com

ed: SGC / sa: WMT

Bloomberg: MKH MK | Reuters: METR.KL Refer to important disclosures at the end of this report

BUYBUYBUYBUY RMRMRMRM4.014.014.014.01 KLCIKLCIKLCIKLCI : : : : 1,872.971,872.971,872.971,872.97 Price Target :Price Target :Price Target :Price Target : 12-Month RM 5.85

Potential Catalyst: Potential Catalyst: Potential Catalyst: Potential Catalyst: Stronger property sales and FFB production

AllianceDBSAllianceDBSAllianceDBSAllianceDBS vs Consensus:vs Consensus:vs Consensus:vs Consensus: First to cover the stock Analyst QUAH He Wei, CFA +603 2604 3966 [email protected]

Price Relative

8 4

1 3 4

1 8 4

2 3 4

2 8 4

3 3 4

3 8 4

4 3 4

0 .6

1 .1

1 .6

2 .1

2 .6

3 .1

3 .6

4 .1

J u l - 1 0 J u l - 1 1 J u l - 1 2 J u l - 1 3 J u l - 1 4

R e la t i v e In d e xR M

M K H B h d ( L H S ) R e la t i v e K L C I IN D E X ( R H S ) Forecasts and Valuation

FY FY FY FY SepSepSepSep ((((RMRMRMRM m) m) m) m) 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF

Turnover 688 775 983 1,374 EBITDA 183 208 287 403 Pre-tax Profit 136 184 261 377 Net Profit 103 135 191 275 Net Pft (Pre Ex.) 119 135 191 275 EPS (sen) 24.7 32.3 45.5 65.7 EPS Pre Ex. (sen) 28.4 32.3 45.5 65.7 EPS Gth (%) 15 31 41 44 EPS Gth Pre Ex (%) 63 14 41 44 Diluted EPS (sen) 24.7 32.3 45.5 65.7 Net DPS (sen) 7.5 8.3 8.3 12.5 BV Per Share (sen) 272.4 253.1 290.2 347.5 PE (X) 16.3 12.4 8.8 6.1 PE Pre Ex. (X) 14.1 12.4 8.8 6.1 P/Cash Flow (X) 15.4 7.5 10.9 9.3 EV/EBITDA (X) 11.4 9.7 7.0 4.9 Net Div Yield (%) 1.9 2.1 2.1 3.1 P/Book Value (X) 1.5 1.6 1.4 1.2 Net Debt/Equity (X) 0.4 0.3 0.3 0.2 ROAE (%) 12.0 13.4 16.7 20.6 Earnings Rev (%):Earnings Rev (%):Earnings Rev (%):Earnings Rev (%): 0 0 0 Consensus EPS Consensus EPS Consensus EPS Consensus EPS (sensensensen):::: 31.0 40.5 66.0 Other Broker Recs:Other Broker Recs:Other Broker Recs:Other Broker Recs: B: 2 S: 0 H: 0 ICB IndustryICB IndustryICB IndustryICB Industry : Real Estate ICB Sector: ICB Sector: ICB Sector: ICB Sector: Real Estate Investment & Services Principal Business:Principal Business:Principal Business:Principal Business: MKH is an established township developer in Kajang/Semenyih and Greater Klang Valley. Its 16k ha oil palm estates in Indonesia has started to contribute significantly Source of all data: Company, AllianceDBS, Bloomberg

At A Glance Issued Capital (m shrs) 419 Mkt. Cap (RMm/US$m) 1,682 / 528 Major Shareholders Chen Choy & Sons Realty (%) 43.1 Public Bank Grp Off Fund (%) 9.8 Free Float (%) 47.1 Avg. Daily Vol.(‘000) 572

Company Focus

MKH Bhd

Best proxy to booming Kajang • Resilient property sales riding on booming

Kajang/Semenyih growth corridor

• Exponential growth from plantation driven by 3-year FFB volume CAGR of 20%

• Maintain high-conviction BUY, RM5.85 TP

Record high unbilled sales. MKH is on track to meet its

record high property sales target of RM800m for FY14 (vs

RM580m in FY13). It booked RM410m sales in 1HFY14, of

which RM96m is pre-sale booking. This has yet to include

the strong sales from Saville@Kajang (RM280m GDV)

which has seen 80% take-up despite being launched only

in late April. Thanks to the robust sales, unbilled sales is at

a record high of RM602m as at March, or 1.3x its FY13

property revenue.

Strong launch pipeline. MKH’s large tract of property

land bank in Kajang/Semenyih (490 acres) makes them the

prime beneficiary of rising land prices at this hotspot.

Upcoming launches for MKH include MKH Avenue

2@Kajang City (RM200m GDV, shop offices),

Saville@Cheras (RM280m, high-rise), and Hill Park Homes

3@Semenyih (RM173m, 2-storey terrace houses). These

should be well-received due to their strategic locations and

affordable pricing.

Plantation a potential catalyst. FFB output hit 130k MT

in 1HFY14 (48% of our full-year forecast), and we

understand April FFB yield was strong. We expect

plantation contribution to rise to 33%/38% of FY14/15

group earnings (from 17% in FY13).

High conviction pick. We project MKH to register 32%

earnings CAGR over FY13-16F. MKH’s unrivalled strong

growth prospects in both the Property and Plantation

segments will drive a multi-year re-rating of the stock.

Company Focus

MKH Bhd

Income Statement (RM m) Balance Sheet (RM m)

FY FY FY FY SepSepSepSep 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF FY FY FY FY SepSepSepSep 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF Turnover 688 775 983 1,374 Net Fixed Assets 163 243 323 403 Cost of Goods Sold (441) (416) (536) (801) Invts in Associates & JVs 28 31 34 37 Gross ProfitGross ProfitGross ProfitGross Profit 247247247247 359359359359 447447447447 572572572572 Invt & Devt Properties 264 264 264 264 Other Opng (Exp)/Inc (90) (154) (163) (173) Other LT Assets 713 763 784 806 Operating ProfitOperating ProfitOperating ProfitOperating Profit 158158158158 205205205205 284284284284 400400400400 Cash & ST Invts 123 191 208 252 Other Non Opg (Exp)/Inc 0 0 0 0 Dev Props held for sale 280 203 262 392 Associates & JV Inc 11 3 3 3 Inventory 41 61 77 108 Net Interest (Exp)/Inc (17) (23) (26) (26) Debtors 113 134 170 238 Exceptional Gain/(Loss) (16) 0 0 0 Other Current Assets 561 526 637 865 PrePrePrePre----tax Profittax Profittax Profittax Profit 136136136136 184184184184 261261261261 377377377377 Total AssetsTotal AssetsTotal AssetsTotal Assets 1,8511,8511,8511,851 2,0162,0162,0162,016 2,2502,2502,2502,250 2,6272,6272,6272,627 Tax (29) (46) (65) (94) Minority Interest (3) (3) (5) (8) ST Debt 107 107 107 107 Preference Dividend 0 0 0 0 Other Current Liab 182 199 252 353 Net ProfitNet ProfitNet ProfitNet Profit 103103103103 135135135135 191191191191 275275275275 LT Debt 40 77 96 125 Net Profit before Except. 119 135 191 275 Other LT Liabilities 152 152 152 152 EBITDA 183 208 287 403 Shareholder’s Equity 951 1,061 1,216 1,457 Minority Interests 3 6 11 19 Sales Gth (%) 26.2 12.5 26.9 39.7 Total Cap. & Liab.Total Cap. & Liab.Total Cap. & Liab.Total Cap. & Liab. 1,8511,8511,8511,851 2,0162,0162,0162,016 2,2502,2502,2502,250 2,6272,6272,6272,627 EBITDA Gth (%) 59.8 13.8 38.1 40.4 Opg Profit Gth (%) 69.7 30.1 38.6 40.8 Non-Cash Wkg. Capital 339 250 289 388 Net Profit Gth (%) 38.5 30.9 40.8 44.5 Net Cash/(Debt) (399) (331) (313) (270) Effective Tax Rate (%) 21.3 25.0 25.0 25.0 Cash Flow Statement (RM m) Rates & Ratio

FY FY FY FY SepSepSepSep 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF FY FY FY FY SepSepSepSep 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF Pre-Tax Profit 136 184 261 377 Gross Margins (%) 36.0 46.3 45.5 41.7 Dep. & Amort. 14 0 0 0 Opg Profit Margin (%) 22.9 26.4 28.9 29.1 Tax Paid (36) (9) (46) (65) Net Profit Margin (%) 15.0 17.5 19.4 20.0 Assoc. & JV Inc/(loss) (11) (3) (3) (3) ROAE (%) 12.0 13.4 16.7 20.6 Chg in Wkg.Cap. (6) 52 (58) (128) ROA (%) 6.2 7.0 8.9 11.3 Other Operating CF 13 0 0 0 ROCE (%) 8.4 9.1 11.7 14.8 Net Operating CFNet Operating CFNet Operating CFNet Operating CF 109109109109 224224224224 154154154154 181181181181 Div Payout Ratio (%) 25.3 25.8 18.3 19.0 Capital Exp.(net) (174) (80) (80) (80) Net Interest Cover (x) 9.2 8.7 10.9 15.3 Other Invts.(net) (24) (50) (21) (22) Asset Turnover (x) 0.4 0.4 0.5 0.6 Invts in Assoc. & JV 0 0 0 0 Debtors Turn (avg days) 54.9 58.1 56.5 54.2 Div from Assoc & JV 34 0 0 0 Creditors Turn (avg days) 137.6 167.2 153.5 137.7 Other Investing CF 0 0 0 0 Current Ratio (x) 2.1 1.9 1.9 1.9 Net Investing CFNet Investing CFNet Investing CFNet Investing CF (164)(164)(164)(164) (130)(130)(130)(130) (101)(101)(101)(101) (102)(102)(102)(102) Quick Ratio (x) 0.7 0.8 0.8 0.8 Div Paid (13) (26) (35) (35) Net Debt/Equity (X) 0.4 0.3 0.3 0.2 Chg in Gross Debt 49 0 0 0 Net Debt/Equity ex MI (X) 0.4 0.3 0.3 0.2 Capital Issues 52 0 0 0 Capex to Debt (%) 33.4 15.3 15.3 15.3 Other Financing CF 0 0 0 0 Z-Score (X) 0.0 0.0 0.0 0.0 Net Financing CFNet Financing CFNet Financing CFNet Financing CF 88888888 (26)(26)(26)(26) (35)(35)(35)(35) (35)(35)(35)(35) N. Cash/(Debt)PS (sen) (114.2) (79.0) (74.8) (64.3) Currency Adjustments (20) 0 0 0 Opg CFPS (sen) 27.6 41.1 50.5 73.6 Chg in Cash 13 68 18 44 Free CFPS (sen) (15.5) 34.4 17.6 24.0 Quarterly / Interim Income Statement (RM m) Segmental Breakdown / Key Assumptions

FY FY FY FY SepSepSepSep 3Q3Q3Q3Q2013201320132013 4Q4Q4Q4Q2013201320132013 1Q1Q1Q1Q2014201420142014 2Q2Q2Q2Q2014201420142014 FY FY FY FY SepSepSepSep 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF Turnover 185 218 182 188 Revenues (RM m) Cost of Goods Sold (115) (142) (118) (113) Property development & 476 489 610 964 Gross ProfitGross ProfitGross ProfitGross Profit 70707070 76767676 64646464 76767676 Hotel & property investment 32 34 36 38 Other Oper. (Exp)/Inc (22) (16) (16) (24) Trading 67 72 78 85 Operating ProfitOperating ProfitOperating ProfitOperating Profit 48484848 60606060 49494949 52525252 Manufacturing 9 9 10 10 Other Non Opg (Exp)/Inc 0 0 0 0 Plantation 101 170 249 277 Associates & JV Inc 0 1 1 1 TotalTotalTotalTotal 688688688688 775775775775 983983983983 1,3741,3741,3741,374 Net Interest (Exp)/Inc (6) (2) (5) (7) EBIT (RM m) Exceptional Gain/(Loss) 2 (33) (20) 29 Property development & 115 118 153 239 PrePrePrePre----tax Profittax Profittax Profittax Profit 44444444 27272727 25252525 75757575 Hotel & property investment 15 15 16 17 Tax (12) (2) (6) (19) Trading 4 5 5 6 Minority Interest 0 0 (2) (5) Manufacturing 0 0 0 0 Net ProfitNet ProfitNet ProfitNet Profit 32323232 24242424 17171717 51515151 Plantation 29 67 109 138 Net profit bef Except. 30 57 37 21 TotalTotalTotalTotal 163163163163 205205205205 284284284284 400400400400 EBITDA 48 61 50 53 EBIT Margins (%) Property development & 24.2 24.1 25.1 24.7 Sales Gth (%) 35.1 17.5 (16.2) 3.1 Hotel & property investment 46.9 45.0 45.0 45.0 EBITDA Gth (%) 88.8 27.3 (18.6) 6.4 Trading 6.7 7.0 7.0 7.0 Opg Profit Gth (%) 91.6 25.4 (19.4) 6.3 Manufacturing (2.3) 1.0 1.5 1.8 Net Profit Gth (%) 155.0 (25.2) (30.8) 203.1 Plantation 28.3 39.2 43.8 49.9 Gross Margins (%) 37.8 35.0 35.3 40.2 TotalTotalTotalTotal 23.723.723.723.7 26.426.426.426.4 28.928.928.928.9 29.129.129.129.1 Opg Profit Margins (%) 26.0 27.7 26.7 27.5 Key Assumptions Net Profit Margins (%) 17.4 11.1 9.2 26.9 CPO ASP (RM/MT) 2,525.5 2,545.1 2,617.9 FFB production (MT) 271,681. 340,780. 382,445. property sales (RMm) 580.8 728.6 896.6 1,058.0 Source: Company, AllianceDBS

www.dbsvickers.com

ed: SGC / sa: WMT

Bloomberg: SPSB MK | Reuters: SETI.KL Refer to important disclosures at the end of this report

BUYBUYBUYBUY RMRMRMRM3.523.523.523.52 KLCIKLCIKLCIKLCI : : : : 1,872.971,872.971,872.971,872.97 (Upgrade from Hold)

Price Target :Price Target :Price Target :Price Target : 12-Month RM 4.10 (Prev RM 2.95)

PPPPotential Catalyst: otential Catalyst: otential Catalyst: otential Catalyst: M&A by largest shareholder PNB

DBSV vs Consensus:DBSV vs Consensus:DBSV vs Consensus:DBSV vs Consensus: More conservative sales assumptions Analyst QUAH He Wei, CFA +603 2604 3966 [email protected]

Price Relative

6 6

8 6

1 0 6

1 2 6

1 4 6

1 6 6

1 8 6

2 0 6

2 .4

2 .9

3 .4

3 .9

4 .4

4 .9



S P S e t ia ( L H S ) R e la t i v e K L C I IN D E X ( R H S ) Forecasts and Valuation

FY FY FY FY OctOctOctOct ((((RMRMRMRM m) m) m) m) 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF

Turnover 3,061 4,095 5,658 7,732 EBITDA 554 847 1,203 1,703 Pre-tax Profit 570 725 986 1,456 Net Profit 418 436 612 703 Net Pft (Pre Ex.) 431 436 612 703 EPS (sen) 16.9 17.6 24.7 28.4 EPS Pre Ex. (sen) 17.4 17.6 24.7 28.4 EPS Gth (%) 6 4 40 15 EPS Gth Pre Ex (%) 9 1 40 15 Diluted EPS (sen) 16.9 17.6 24.7 28.4 Net DPS (sen) 10.6 7.9 11.1 12.8 BV Per Share (sen) 235.1 242.5 252.9 264.9 PE (X) 20.9 20.0 14.3 12.4 PE Pre Ex. (X) 20.3 20.0 14.3 12.4 P/Cash Flow (X) 13.0 184.4 25.5 17.6 EV/EBITDA (X) 19.9 14.4 10.9 7.9 Net Div Yield (%) 3.0 2.2 3.2 3.6 P/Book Value (X) 1.5 1.5 1.4 1.3 Net Debt/Equity (X) 0.4 0.6 0.7 0.6 ROAE (%) 8.7 7.8 10.5 11.6 Earnings Rev (%):Earnings Rev (%):Earnings Rev (%):Earnings Rev (%): 0 0 0 Consensus EPS Consensus EPS Consensus EPS Consensus EPS (sensensensen):::: 19.6 26.2 31.6 Other Broker Recs:Other Broker Recs:Other Broker Recs:Other Broker Recs: B: 4 S: 4 H: 15 ICB ICB ICB ICB IndustryIndustryIndustryIndustry : Real Estate ICB Sector: ICB Sector: ICB Sector: ICB Sector: Real Estate Principal Business:Principal Business:Principal Business:Principal Business: Sector leader - largest residential property developer by market cap and sales

Source of all data: Company, AllianceDBS, Bloomberg

At A Glance Issued Capital (m shrs) 2,522 Mkt. Cap (RMm/US$m) 8,876 / 2,788 Major Shareholders Permodalan Nasional (%) 53.1 Skim Amanah Saham (%) 15.5 KWAP (%) 7.2 Free Float (%) 19.3 Avg. Daily Vol.(‘000) 1,154

Company Focus

SP Setia

Poised to recover • CEO departure priced in; historical low PE and

P/BV valuation (at -1SD of mean)

• Large tract of quality and prime land bank to sustain long-term growth

• Record high RM11.2bn unbilled sales to support earnings visibility

• Upgrade to Buy with RM4.10 TP

Robust outlook. Despite relatively weaker sentiment in

the property sector, we project SPSB will deliver strong 3-

year earnings CAGR of 18%, underpinned by record high

unbilled sales of RM11.2bn (4x FY13 property

development revenue). 7MFY14 property sales stood at

RM3.2bn, suggesting it is on track to meet FY14 target of

RM5bn. The strong 95% take-up for Battersea Phase 2

(GBP800m GDV; 2.3k psf ASP) launched in May will help

to grow unbilled sales in 2HFY14. We expect exponential

growth in FY16/17 following the handover of Battersea

Phase 1.

Strategic land bank. Given SPSB’s prime 4,782-acre land

bank (RM71bn GDV) at low holding cost, SPSB stands to

benefit the most from the steep land price appreciation in

recent years. It is poised to benefit from resilient demand

for its established township developments in Setia Alam

(712 acres undeveloped; RM3.50psf land cost) and Setia

Eco Hill (1,447 acres; RM10.2psf) which should continue to

see strong sales.

Upgrade to BUY, RM4.10 TP. Our TP is based on smaller

30% discount (50% previously) to our RNAV of RM5.86.

The CEO departure has been priced in as PE and P/BV

multiples are at historical lows at -1SD of mean. Strong

fundamentals should limit downside to the share price,

which is also supported by 3.2% FY15 dividend yield,

based 60% historical payout. Re-rating catalyst could

come from potential M&A exercise which is likely to be

done above put option exercise price granted to Tan Sri

Liew Kee Sin at RM3.95/share.

Company Focus

SP Setia

Income Statement (RM m) Balance Sheet (RM m)

FY FY FY FY OctOctOctOct 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF FY FY FY FY OctOctOctOct 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF

Turnover 3,061 4,095 5,658 7,732 Net Fixed Assets 122 894 1,463 1,361 Cost of Goods Sold (2,506) (3,248) (4,455) (6,028) Invts in Associates & JVs 58 28 4 (16) Gross ProfitGross ProfitGross ProfitGross Profit 554554554554 847847847847 1,2031,2031,2031,203 1,7031,7031,7031,703 Invt & Devt Properties 5,932 5,833 5,737 5,642 Other Opng (Exp)/Inc (13) (66) (154) (184) Other LT Assets 220 220 220 220 Operating ProfitOperating ProfitOperating ProfitOperating Profit 541541541541 781781781781 1,0491,0491,0491,049 1,5191,5191,5191,519 Cash & ST Invts 2,243 1,911 1,885 2,293 Other Non Opg (Exp)/Inc 0 0 0 0 Dev Props held for sale 2,693 1,922 2,163 2,992 Associates & JV Inc 0 (30) (24) (19) Inventory 43 36 45 60 Net Interest (Exp)/Inc (8) (25) (39) (43) Debtors 1,058 1,204 1,529 2,090 Exceptional Gain/(Loss) (13) 0 0 0 Other Current Assets 73 654 1,108 1,242 PrePrePrePre----tax Profittax Profittax Profittax Profit 570570570570 725725725725 986986986986 1,4561,4561,4561,456 Total AssetsTotal AssetsTotal AssetsTotal Assets 12,44212,44212,44212,442 12,70312,70312,70312,703 14,15314,15314,15314,153 15,88515,88515,88515,885 Tax (151) (181) (246) (364) Minority Interest (1) (81) (94) (349) ST Debt 614 614 614 614 Preference Dividend 0 0 0 0 Other Current Liab 2,343 1,547 1,937 2,621 Net ProfitNet ProfitNet ProfitNet Profit 418418418418 436436436436 612612612612 703703703703 LT Debt 40 40 40 40 Net Profit before Except. 431 463 645 743 Other LT Liabilities 5 5 5 5 EBITDA 554 847 1,203 1,703 Shareholder’s Equity 5,526 5,700 5,944 6,226 Minority Interests (1) 80 175 524 Sales Gth (%) 21.1 33.8 38.2 36.7 Total Cap. & Liab.Total Cap. & Liab.Total Cap. & Liab.Total Cap. & Liab. 12,44212,44212,44212,442 12,70312,70312,70312,703 14,15314,15314,15314,153 15,88515,88515,88515,885 EBITDA Gth (%) 4.4 52.9 42.0 41.6 Opg Profit Gth (%) 4.6 44.3 34.4 44.7 Non-Cash Wkg. Capital 1,485 2,230 2,868 3,723 Net Profit Gth (%) 6.1 4.3 40.3 15.0 Net Cash/(Debt) (2,286) (3,420) (4,168) (4,176) Effective Tax Rate (%) 26.5 25.0 25.0 25.0 Cash Flow Statement (RM m) Rates & Ratio

FY FY FY FY OctOctOctOct 2020202013131313AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF FY FY FY FY OctOctOctOct 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF

Pre-Tax Profit 570 725 986 1,456 Gross Margins (%) 18.1 20.7 21.3 22.0 Dep. & Amort. 13 66 154 184 Opg Profit Margin (%) 17.7 19.1 18.5 19.6 Tax Paid (244) (151) (181) (246) Net Profit Margin (%) 13.7 10.6 10.8 9.1 Assoc. & JV Inc/(loss) 0 30 24 19 ROAE (%) 8.7 7.8 10.5 11.6 Chg in Wkg.Cap. 455 (582) (602) (876) ROA (%) 3.8 3.5 4.6 4.7 Other Operating CF (125) (42) (38) (42) ROCE (%) 4.4 5.5 6.8 9.0 Net Operating CFNet Operating CFNet Operating CFNet Operating CF 670670670670 47474747 342342342342 495495495495 Div Payout Ratio (%) 59.6 42.7 42.7 42.7 Capital Exp.(net) (235) (839) (723) (82) Net Interest Cover (x) 67.4 30.8 26.7 35.2 Other Invts.(net) (1,434) 0 0 0 Asset Turnover (x) 0.3 0.3 0.4 0.5 Invts in Assoc. & JV (94) 0 0 0 Debtors Turn (avg days) 107.5 100.8 88.2 85.4 Div from Assoc & JV 17 0 0 0 Creditors Turn (avg days) 272.1 223.1 147.8 142.3 Other Investing CF 34 0 0 0 Current Ratio (x) 2.0 2.6 2.6 2.6 Net Investing CFNet Investing CFNet Investing CFNet Investing CF (1,713)(1,713)(1,713)(1,713) ((((839)839)839)839) (723)(723)(723)(723) (82)(82)(82)(82) Quick Ratio (x) 1.1 1.4 1.3 1.3 Div Paid (254) (261) (367) (422) Net Debt/Equity (X) 0.4 0.6 0.7 0.6 Chg in Gross Debt 642 802 721 417 Net Debt/Equity ex MI (X) 0.4 0.6 0.7 0.7 Capital Issues 1,329 0 0 0 Capex to Debt (%) 5.2 15.7 11.9 1.3 Other Financing CF 26 (81) 0 0 Z-Score (X) 1.5 1.7 1.8 1.9 Net Financing CFNet Financing CFNet Financing CFNet Financing CF 1,7431,7431,7431,743 459459459459 354354354354 (5)(5)(5)(5) N. Cash/(Debt)PS (sen) (97.3) (145.5) (177.3) (177.7) Currency Adjustments 0 0 0 0 Opg CFPS (sen) 8.6 25.4 38.1 55.3 Chg in Cash 700 (332) (26) 408 Free CFPS (sen) 17.5 (31.9) (15.4) 16.7 Quarterly / Interim Income Statement (RM m) Segmental Breakdown / Key Assumptions FY FY FY FY OctOctOctOct 3Q3Q3Q3Q2013201320132013 4Q4Q4Q4Q2013201320132013 1Q1Q1Q1Q2014201420142014 2Q2Q2Q2Q2014201420142014 FY FY FY FY OctOctOctOct 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF

Turnover 762 900 722 952 Revenues (RM m) Cost of Goods Sold (590) (685) (546) (748) Construction 122 122 122 122 Gross ProfitGross ProfitGross ProfitGross Profit 172172172172 215215215215 175175175175 204204204204 Property Development 2,810 3,844 5,407 7,481 Other Oper. (Exp)/Inc (4) (4) (6) (7) Property & Investment 129 129 129 129 Operating ProfitOperating ProfitOperating ProfitOperating Profit 168168168168 211211211211 170170170170 197197197197 TotalTotalTotalTotal 3,0613,0613,0613,061 4,0954,0954,0954,095 5,6585,6585,6585,658 7,7327,7327,7327,732 Other Non Opg (Exp)/Inc 0 0 0 0 Pretax profit (RM m) Associates & JV Inc 0 0 (9) (15) Construction 5 5 5 5 Net Interest (Exp)/Inc (12) (19) (14) (16) Property Development 533 714 988 1,463 Exceptional Gain/(Loss) (12) (12) 0 0 Property & Investment 32 32 32 32 PrePrePrePre----tax Profittax Profittax Profittax Profit 144144144144 180180180180 147147147147 165165165165 0 (25) (39) (43) Tax (40) (52) (30) (47) TotalTotalTotalTotal 570570570570 725725725725 986986986986 1,4561,4561,4561,456 Minority Interest (2) 0 (20) (44) Pretax Margins (%) Net ProfitNet ProfitNet ProfitNet Profit 102102102102 127127127127 97979797 74747474 Construction 4.1 4.1 4.1 4.1 Net profit bef Except. 113 139 97 74 Property Development 19.0 18.6 18.3 19.6 EBITDA 172 215 167 189 Property & Investment 24.7 24.7 24.7 24.7 TotalTotalTotalTotal 18.618.618.618.6 17.717.717.717.7 17.417.417.417.4 18.818.818.818.8 Sales Gth (%) 7.1 18.2 (19.8) 32.0 Key Assumptions EBITDA Gth (%) 16.7 25.0 (22.4) 13.4 Property sales 10,501.3 5,477.2 4,521.2 4,275.1 Opg Profit Gth (%) 17.1 25.7 (19.6) 15.8 Net Profit Gth (%) 6.4 24.9 (24.0) (23.3) Gross Margins (%) 22.5 23.9 24.3 21.4 Opg Profit Margins (%) 22.1 23.4 23.5 20.7 Net Profit Margins (%) 13.4 14.1 13.4 7.8 Source: Company, AllianceDBS

www.dbsvickers.com

ed: TH / sa: WMT

BUYBUYBUYBUY RMRMRMRM5.085.085.085.08 KLCIKLCIKLCIKLCI : : : : 1,872.971,872.971,872.971,872.97

(Initiating Coverage)

Price Target :Price Target :Price Target :Price Target : 12-Month RM 6.00

Reason for Report :Reason for Report :Reason for Report :Reason for Report : Initiation

Potential Catalyst: Potential Catalyst: Potential Catalyst: Potential Catalyst: Strong property sales, aggressive property

launches, earnings delivery Analyst QUAH He Wei, CFA +603 2604 3966 [email protected]

Price Relative

7 6

5 7 6

1 0 7 6

1 5 7 6

2 0 7 6

0 .1

1 .1

2 .1

3 .1

4 .1

5 .1



E c o W o r l d D e v e lo p m e n t B h d ( L H S ) R e la t i v e K L C I IN D E X ( R H S ) Forecasts and Valuation

FY FY FY FY OctOctOctOct ((((RMRMRMRM m) m) m) m) 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF

Turnover 156 84 942 2,318 EBITDA 34 13 241 446 Pre-tax Profit 30 10 103 267 Net Profit 24 8 77 200 Net Pft (Pre Ex.) 24 8 77 200 EPS (sen) 9.6 1.2 11.8 30.4 EPS Pre Ex. (sen) 9.6 1.2 11.8 30.4 EPS Gth (%) 237 (87) 882 159 EPS Gth Pre Ex (%) 237 (87) 882 159 Diluted EPS (sen) 9.6 1.2 11.8 30.4 Net DPS (sen) 0.0 0.0 0.0 0.0 BV Per Share (sen) 125.8 378.6 390.3 420.8 PE (X) 53.0 423.9 43.2 16.7 PE Pre Ex. (X) 53.0 423.9 43.2 16.7 P/Cash Flow (X) 42.5 122.1 nm nm EV/EBITDA (X) 39.0 380.7 22.7 12.8 Net Div Yield (%) 0.0 0.0 0.0 0.0 P/Book Value (X) 4.0 1.3 1.3 1.2 Net Debt/Equity (X) 0.1 0.7 0.8 0.8 ROAE (%) 7.9 0.6 3.1 7.5 Consensus EPS Consensus EPS Consensus EPS Consensus EPS (sensensensen):::: 4.7 5.5 10.8 Other Broker Recs:Other Broker Recs:Other Broker Recs:Other Broker Recs: B: 4 S: 1 H: 0 ICB IndustryICB IndustryICB IndustryICB Industry : Financials ICB Sector: ICB Sector: ICB Sector: ICB Sector: Real Estate Investment & Services Principal Business:Principal Business:Principal Business:Principal Business: Township developer with 4,400 acres of land bank offering comprehensive range of products *13-month period for FY14 due to FYE change to Oct from Sep

Source of all data: Company, AllianceDBS, Bloomberg Finance L.P

At A Glance Issued Capital (m shrs) 253 Mkt. Cap (RMm/US$m) 1,287 / 404 Major Shareholders Liew Tian Xiong (%) 35.1 Eco World Development Holdings (%) 20.0 Free Float (%) 24.5 Avg. Daily Vol.(‘000) 967

DBS Group Research . Equity DBS Group Research . Equity DBS Group Research . Equity DBS Group Research . Equity

21 Jul 2014

Malaysia Company Focus

Eco World Development Bhd Bloomberg: ECW MK | Reuters: ECOW.KL Refer to important disclosures at the end of this report

New kid with old hands • New lease of life with RM43bn GDV pipeline

projects under reinvigorated corporate identity, back by a highly experienced management team

• RM5bn sales target for the next two years to spearhead complete transformation

• Initiate with BUY and RM6.00 TP

DNA of DNA of DNA of DNA of a a a a property bellwetherproperty bellwetherproperty bellwetherproperty bellwether. . . . ECW (formerly known as

Focal Aims), a relatively new property developer, is helmed by

former top executives of SP Setia. Since the takeover by Eco

World Development Holdings Sdn Bhd (20% stake; EWH) and

Liew Tian Xiong (35% stake; eldest son of Tan Sri Liew Kee

Sin – founder of SP Setia) in Nov13, ECW has proposed to

acquire development rights of eight subsidiaries from Eco

World Development Sdn Bhd (EWSB; 50% owned by EWH)

that will position the Group as the fastest-rising property

developer in Malaysia.

4,4004,4004,4004,400----acre acre acre acre land bank worth RM43.5bn GDVland bank worth RM43.5bn GDVland bank worth RM43.5bn GDVland bank worth RM43.5bn GDV will offer ECW

immediate presence in Klang Valley, Iskandar Malaysia and

Penang – Malaysia’s top property hotspots. The Group targets

to achieve RM5bn sales over two years, given the new

projects to be launched over FY14-15F.

ValueValueValueValue----accretive land acquisitionaccretive land acquisitionaccretive land acquisitionaccretive land acquisition in the pipelinein the pipelinein the pipelinein the pipeline. . . . Thanks to its

management’s track record, ECW is participating in the

redevelopment of the former Pudu Jail site at a 20-acre prime

Bukit Bintang land which could carry RM7bn GDV. The board

is still deliberating on the offer to acquire a 1.18-acre land in

Parramatta, Australia, and it could secure the 470-acre land in

Batu Kawan which we understand it is the frontrunner in the

request for proposal from the Penang state government.

Initiate with BUYInitiate with BUYInitiate with BUYInitiate with BUY. . . . We arrive at our TP of RM6.00, based on a

20% discount to our RNAV methodology (pre-share split). On

ex-all basis, we value ECW at RM2.00 (excluding 7-yr warrant

dilution). We expect ECW’s earnings to grow substantially to

RM77m in FY15 from RM24m in FY13, thanks to the

unprecedented property sales boosted by the management

team’s undisputed brand name.

Company Focus

Eco World Development Bhd

SWOT Analysis

StrengthsStrengthsStrengthsStrengths WeaknessWeaknessWeaknessWeakness

• Impressive Impressive Impressive Impressive execution track recordexecution track recordexecution track recordexecution track record underpinned by former SP Setia management team which had grown SP Setia into the Malaysian property bellwether from a relatively small establishment.

• Strong Strong Strong Strong market confidencemarket confidencemarket confidencemarket confidence. Despite being a relatively new property developer, ECW has been able to sell properties at an unprecedented pace, reflecting property buyers’ confidence in the management team’s strong brand name.

• Huge land bankHuge land bankHuge land bankHuge land bank. ECW is now in the midst of a corporate exercise that will leapfrog its land bank from 1,300 to 4,400 acres upon completion of the deal.

• Innovative product offeringsInnovative product offeringsInnovative product offeringsInnovative product offerings. ECW is likely to offer

innovative products via well-crafted township planning, given its large parcel of land bank

• Building up from scratchBuilding up from scratchBuilding up from scratchBuilding up from scratch. Historically, ECW has not had successful large-scale projects to boast of.

• Relatively more expensive land costRelatively more expensive land costRelatively more expensive land costRelatively more expensive land cost. ECW is acquiring vast land banks at relatively higher prices due to the steep appreciation over the past few years.

• Premium pricingPremium pricingPremium pricingPremium pricing. ECW’s higher selling price relative to some of its peers may not be sustainable if the economic outlook deteriorates.

OpportunitiesOpportunitiesOpportunitiesOpportunities ThreatsThreatsThreatsThreats

• Favourable demographicsFavourable demographicsFavourable demographicsFavourable demographics. Young and growing population and workforce will continue to support property demand, especially in Greater KL which is also the employment hub.

• Urban migrationUrban migrationUrban migrationUrban migration. Malaysian government’s aspiration to grow the Greater KL population to 10m by 2020 from an estimated 7m currently will serve as a major demand driver

• MMMMRRRRT connectivity T connectivity T connectivity T connectivity will help support demand, especially in the

suburban areas given the availability of vast land bank

• Relatively weaker property sentiment.Relatively weaker property sentiment.Relatively weaker property sentiment.Relatively weaker property sentiment. The strong property price surge over the last few years, coupled with recent tightening measures, could weaken property sales as property buyers are becoming more cautious.

• Tighter bank lendingTighter bank lendingTighter bank lendingTighter bank lending. Stricter lending guidelines by banks due to rising housing debt may lead to softer sales.

• Rising costRising costRising costRising cost. Construction and building material costs have been on the uptrend which may erode developers’ profitability.

Source: AllianceDBS

Company Focus


Company Background New lease of lifeNew lease of lifeNew lease of lifeNew lease of life.... EWH and Liew Tian Xiong took over ECW

(previously known as Focal Aims) with a 65% stake in Nov13

after months of speculation that ECW would be Tan Sri Liew

Kee Sin’s listed vehicle after his exit from SP Setia. With the

recent proposed acquisition and fund raising exercise

(expected completion by Oct14), ECW will be propelled to

the forefront of the Malaysian property sector, given its

massive 4,400-acre land bank with RM43.4bn GDV potential.

Massive corporate exercise to transform ECWMassive corporate exercise to transform ECWMassive corporate exercise to transform ECWMassive corporate exercise to transform ECW. The proposed

corporate exercise announced in Apr14 entails:

a) Proposed acquisition of development rights to eight

projects from EWSB

b) Proposed subscription of shares in ECW by shareholders

of EWSB to partially fund the acquisitions and ensure

continuity of ownership

c) Proposed rights issue with warrants and up to 20%

proposed private placement

It also includes the acquisition of two EWSB subsidiaries, Eco

World Project Management Sdn Bhd (project management

team) and Eco Macalister Development Sdn Bhd (investment

property asset in Penang).

Currently, ECW has only one ongoing project in Kota Masai,

with 991.6 acres left for development. The proposed

corporate exercise will offer immediate presence in the key

property hotspots in Malaysia – Klang Valley, Iskandar

Malaysia and Penang. This will offer ECW the much needed

platform to drive exponential growth prospects, leveraging

on its execution capability and track record.

Proposed acquisitions and corporate structure


Proposed fund raising

s h a re ss h a re ss h a re ss h a re s R e ma rksR e ma rksR e ma rksR e ma rks

(m)(m)(m)(m)

share base 253.3

share split 506.6

share subscription 806.8 1,371.6

1,313.5

656.7 788.0

1,970.2

20% placement 394.0 634.4

2,364.3

warrants 525.4 1,035.0

2,889.7

Pro c e e d s Pro c e e d s Pro c e e d s Pro c e e d s

(R M m)(R M m)(R M m)(R M m)

@ RM1.70/share by

Sinarmas and EWH

rights issue with

warrants

[email protected];

entitlement not fixed

[email protected];

Price not fixed


Sales Trend Profitability Trend

-50.0%

150.0%

350.0%

550.0%

750.0%

950.0%

0

500

1,000

1,500

2,000

2012A 2013A 2014F 2015F 2016F

RM m

Total Revenue Revenue Growth (%) (YoY)

7

57

107

157

207

257

307

357

407

2012A 2013A 2014F 2015F 2016F

RM m

Operating EBIT Pre tax Profit Net Profit

Source: Company, AllianceDBS

Sinarmas EWH

EWSB

Liew TianXiong

50% 50%

ECW

20%

35%

- 8 subsidiaries- Eco Macalister- Eco World project management

Present

- Proposed acquisition of development rights of 8 subsidiaries- Proposed acquisition of Eco Macalister and Eco World project management

Company Focus


Chronology of EWSB’s rise prior to the proposed corporate exercise

Source: Company

Raring to goRaring to goRaring to goRaring to go. . . . EWSB’s 3,107 acres of land bank (RM30bn GDV

potential) will also come in handy for ECW to grow its

earnings as several projects, such as the RM11bn Eco

Majestic@Semenyih and RM5.9bn Eco Spring@Tebrau, were

introduced to the public in May14. The land bank would also

help address the skyrocketing land prices which have made it

challenging for developers to acquire sizeable land banks.

With the ready launch pipeline, ECW will be able to just focus

on delivering the products and values to its stakeholders.

Growing on a solid footingGrowing on a solid footingGrowing on a solid footingGrowing on a solid footing. EWSB was incorporated in

Dec11 and it has been on an aggressive land bank acquisition

trail to accumulate 3,106.8 acres of land within Klang Valley,

Penang and Iskandar Malaysia. ECW’s access to the land

banks will set the stage for explosive growth over the next

few years. Though ECW is still a relatively new property

developer in Malaysia, the execution ability of its key

management team has never been in doubt. The strong

response to its EcoSky and EcoBotanic projects launched late

last year has been more than impressive, judging by the

lengthy queues and buying frenzies witnessed at the project

launches, which is unprecedented by any standard for a new

developer.

Ready launch pipeline with the land bank acquisitions


En l a rge d la n d b a n kEn l a rge d la n d b a n kEn l a rge d la n d b a n kEn l a rge d la n d b a n k Ac re sAc re sAc re sAc re s GDV (RM m)GDV (RM m)GDV (RM m)GDV (RM m)

Ec o Ce ntra lEc o Ce ntra lEc o Ce ntra lEc o Ce ntra l Saujana Glenmarie 25.9 90

Eco Sky 9.6 974

Eco Majestic 1073.1 11,144

Eco Sanctuary 308.7 8,000

1 41 7 .31 41 7 .31 41 7 .31 41 7 .3 2 0,2 082 0,2 082 0,2 082 0,2 08

Ec o So u thEc o So u thEc o So u thEc o So u th Eco Botanic 325.1 3,794

Eco Spring 613.8 5,871

Eco Tropics 743.6 3,400


Eco Business Park 2 383.6 3,009


2 ,9 2 62 ,9 2 62 ,9 2 62 ,9 2 6 2 1,8 732 1,8 732 1,8 732 1,8 73

Ec o No rthEc o No rthEc o No rthEc o No rth Eco Terraces 12.8 338

Eco Meadows 75.7 916

Eco Macalister 1.1 190

8 9 .68 9 .68 9 .68 9 .6 1,4 441,4 441,4 441,4 44

4 ,4 3 34 ,4 3 34 ,4 3 34 ,4 3 3 4 3,5 254 3,5 254 3,5 254 3,5 25

Company Focus


Property projects in the pipeline


Geographical breakdown of land bank

Geographical breakdown of GDV

Eco Central

32%

Eco South66%

Eco North2%

Eco

Central,

46%Eco South,

50%

Eco North,

3%

Source: AllianceDBS, Company Source: AllianceDBS, Company

Exi s tin g l a n dExi s tin g l a n dExi s tin g l a n dExi s tin g l a n d Loc a tio nLoc a tio nLoc a tio nLoc a tio n typ etyp etyp etyp e Te n u reTe n u reTe n u reTe n u re R Mp s fR Mp s fR Mp s fR Mp s f

Eco Sanctuary Kota Kemuning Mixed dev. LH 308.7 8,000

Saujana Glenmarie Glenmarie, Shah Alam residential township FH 25.9 90

Eco Tropics Pasir Gudang, Johor Mixed dev. FH 743.6 3,400

Eco Business Park 3 Pasir Gudang, Johor business park FH 248 2,000

13 2 613 2 613 2 613 2 6 13 ,4 9013 ,4 9013 ,4 9013 ,4 90

To a c qu i reTo a c qu i reTo a c qu i reTo a c qu i re

Eco Terraces Paya Terubong, Penang niche dev. FH 12.8 338 61 109.4

Eco Meadows Batu Kawan, Penang integrated commercial FH 75.7 916 116 35.2

Eco Macalister George Town, Penang Serviced apartments FH 1.1 190 48 1,001.8

Eco Sky Taman Wahyu, KL integrated commercial FH 9.6 974 118 282.2

Eco Majestic Semenyih, Selangor mixed dev FH 1073.1 11,144 950 20.3

Eco Botanic Nusajaya, Johor mixed dev FH 325.1 3,794 726 51.3

Eco Spring Tebrau, Johor mixed dev FH 613.8 5,871 670 25.1

Eco Business Park 1 Tebrau, Johor business park FH 612 3,799 598 22.4

Eco Business Park 2 Senai, Johor business park FH 383.6 3,009 546 32.7

31 0 731 0 731 0 731 0 7 30 ,0 3530 ,0 3530 ,0 3530 ,0 35 3,83 33,83 33,83 33,83 3

ma rke t ma rke t ma rke t ma rke t

va l ua tio n va l ua tio n va l ua tio n va l ua tio n

(R M m)(R M m)(R M m)(R M m)

s iz e s iz e s iz e s iz e

(a c re )(a c re )(a c re )(a c re )

GDV GDV GDV GDV

(R Mm)(R Mm)(R Mm)(R Mm)

Company Focus


Location of Eco Central in Klang Valley

Source: Company Location of Eco North in Penang

Source: Company

Company Focus


Location of Eco South in Iskandar Malaysia, Johor

Source: Company

Company Focus


Management

Highly experienced teamHighly experienced teamHighly experienced teamHighly experienced team. ECW is helmed by Dato’ Chang

Khim Wah – Group President and CEO. Dato’ Chang has 26

years of experience in the property development industry and

he was the Executive Vice President in charge of Southern

and Northern Property divisions of SP Setia where he served

for c.20 years. Also, Mr. Heah Kok Boon, Executive Director

and CFO, was the Head of Corporate Affairs in SP Setia and

has more than 24 years of experience in audit, corporate

finance and corporate investments.

Credible shareholdersCredible shareholdersCredible shareholdersCredible shareholders. The board of directors comprises the

likes of Tan Sri Abdul Rashid bin Abdul Manaf and Dato’

Leong Kok Wah who were also formerly non-executive

directors in SP Setia. Meanwhile, Mr. Liew Tian Xiong,

Executive Director, is likely to have honed his skills under the

guidance of his father, Tan Sri Liew Kee Sin, who himself has

achieved tremendous success as the founder of SP Setia. Tan

Sri Liew has also been appointed as a non-independent and

non-executive director of ECW recently.

Board of Directors

NameNameNameName PositionPositionPositionPosition BackgroundBackgroundBackgroundBackground Tan Sri Abdul Rashid bin Abdul Manaf

Non-Independent Non-Executive Chairman

- Barrister at Law (Middle Temple London)

- Former President of Session Courts in Klang

- Former Senior Federal Counsel for Income Tax Department

Dato' Leong Kok Wah Non-Independent Non-Executive Deputy Chairman

- MBA from University of Hull, UK

- Extensive experience in construction as well as stockbroking industry

- Executive Director of Salcon Berhad

Dato' Chang Khim Wah

President and CEO - Bachelor of Engineering, University of New South Wales

- 26 years of experience in property development

- Former director of SP Setia, EVP in charge of Southern and Northern property divisions

Heah Kok Boon Executive Director - Bachelor in Commerce (Accounting and Commercial Law), University of Melbourne

- 24 years of experience in audit, corporate finance and corporate investment

- Former head of corporate affairs in SP Setia

Liew Tian Xiong Executive Director - Bachelor's degree in Commerce, University of Melbourne

- Working experience from attachments with Pheim Asset Management and AmBank

Tan Sri Liew Kee Sin Non-Independent Non-Executive Director

- Bachelor of Economics Degree, University of Malaya

- Former President and CEO of SP Setia

- Property Man of the Year by FIABCI Malaysia in 2007

Tan Sri Lee Lam Thye Independent Non-Executive Director

- Former Assemblyman and Member of Parliament

- Chairman of National Institute of Occupational Safety and Health

Tang Kin Kheong Independent Non-Executive Director

- Certified Public Accountant, Malaysia

- 23 years of experience as a practicing accountant

Dato' Idrose bin Mohamed

Independent Non-Executive Director

- Bachelor Degree in Civil Engineering, UiTM

- 30 years of experience in construction, project and infrastructure implementation

Company Focus


Replicating a highly successful SP Setia? Another ‘SP Setia’ in the makingAnother ‘SP Setia’ in the makingAnother ‘SP Setia’ in the makingAnother ‘SP Setia’ in the making???? Given that most of the

management and employees come from SP Setia, there is

little doubt in terms of the execution track record of ECW.

The more pertinent concern would be the extent of ECW in

emulating the success in SP Setia as we believe that the ‘SP

Setia DNA’ within the senior management team would lend

credence to what lies ahead for this new developer which has

been dominating the news headlines of late.

SP Setia’s record-breaking property sales

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

(RMb)

Source: AllianceDBS, SP Setia

SP Setia’s revenue growing rapidly

(15)

(10)

(5)

0

5

10

15

20

25

30

0

500

1,000

1,500

2,000

2,500

3,000

3,500

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

%%%%RMmRMmRMmRMm

Revenue revenue growth


Visionary leadershipVisionary leadershipVisionary leadershipVisionary leadership. Under the stewardship of Tan Sri Liew

Kee Sin, SP Setia has been charting new highs year after year

when it comes to financial as well as operational

performance. SP Setia was the first property developer to

introduce the innovative 5/95 scheme during the financial

crisis where property buyers only had to fork out 5% of the

purchase price upon signing the sales & purchase agreement.

It turned out that other developers also followed suit on the

scheme which has proven to be critical to avert the severe

downturn back then.

Undisputed property bellwetherUndisputed property bellwetherUndisputed property bellwetherUndisputed property bellwether. The ECW’s existing

management team was instrumental in growing SP Setia to

where it is today. SP Setia’s market cap was less than RM2bn

back in 2006 and today the company is worth more than

RM8bn, implying substantial returns to its shareholders. This

is largely attributable to the entrepreneurial drive of the

management which had been relentlessly expanding the

company’s property development activities.

SP Setia’s rising market cap

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Jan

-00

Jan

-01

Jan

-02

Jan

-03

Jan

-04

Jan

-05

Jan

-06

Jan

-07

Jan

-08

Jan

-09

Jan

-10

Jan

-11

Jan

-12

Jan

-13

Jan

-14

RMmRMmRMmRMm

Source: AllianceDBS, Bloomberg Finance L.P.

Relentless expansion driveRelentless expansion driveRelentless expansion driveRelentless expansion drive. SP Setia has established a solid

brand name within Malaysian households, thanks to its

outstanding delivery throughout the years. Value-adding

projects with lifestyle-enhancing features for their township

developments have been sought after by buyers in

anticipation of future appreciation. Tan Sri Liew and his key

executives had also brought SP Setia to expand beyond

Malaysia, penetrating into Melbourne, London, Vietnam and

Singapore. The tremendous success of the company led to

numerous The Edge Malaysia and FIABCI awards.

Poised for successPoised for successPoised for successPoised for success. Therefore, ECW stands to leverage on the

vast experience of its management team to add value to the

4,400 acres of land bank that it will own upon completion of

the proposed corporate exercise.

Company Focus


Competitive Strengths Strong brand nameStrong brand nameStrong brand nameStrong brand name. While the “Eco World” brand name was

only introduced to the market last year, the management and

key shareholders behind ECW have long been widely

acclaimed for their strong delivery and execution track record.

The sell-outs of EWSB’s first launch at Eco Botanic@Nusajaya

and Eco Sky@Taman Wahyu (both to be injected into ECW)

underline the overwhelming confidence bestowed by the

public. As at Mar14, EWH had already achieved RM1.1bn

sales from the two projects. We expect subsequent phases of

the projects to continue garnering keen interest from

property buyers.

ECW showcased its EcoMajestic@Semenyih, Eco

Spring@Tebrau, EcoTropics@Pasir Gudang and Eco Business

Park 1 in May14, collectively accounting for RM20.8bn GDV.

The first phase of EcoMajestic@Semenyih attracted

overwhelming response from buyers where 95% of the 612

units of terraced homes with varying sizes priced from

RM586k onwards were sold over a weekend. Meanwhile,

both EcoSpring and EcoTropics managed to achieve 85%

take-up for the total 197 cluster (>RM1m/unit) and semi-

detached units (>RM1.5m/unit), as well as 497 terraced

homes (>RM650k/unit).

ComprehComprehComprehComprehensive product rangeensive product rangeensive product rangeensive product range. ECW will boast a wide range

of products including affordable, upgrader and luxury homes,

as well as integrated high-rise developments and green

business parks, catering to all walks of life. ECW has targeted

RM5bn sales within two years as the proposed corporate

exercise will increase its project pipeline to 11 projects from

just three at the moment.

Top developer in the makingTop developer in the makingTop developer in the makingTop developer in the making. Upon completion of the

corporate exercise, ECW’s land bank will consist of 1,417

acres in Klang Valley, 2,926 acres in Iskandar Malaysia and 90

acres in Penang. The land bank will be enough to sustain

ECW’s growth over the next 10 years.

Execution team in placeExecution team in placeExecution team in placeExecution team in place. ECW will also have the project

management team that is overseeing and executing EWSB’s

property projects. There will also be a heritage building at its

Eco Macalister site which will be refurbished into a sales and

marketing office to showcase ECW’s portfolio of investment-

grade properties.

Growth Strategies Rein in rising land pricesRein in rising land pricesRein in rising land pricesRein in rising land prices. Upon completion of the corporate

exercise, ECW will have a ready launch pipeline for its

property projects, thanks to the massive land bank which is

strategically situated within Malaysia’s property hotspots of

Klang Valley, Penang and Iskandar Malaysia. Development

land typically account for 10-20% of a project GDV while

construction costs (labour, building materials, etc) will

account for 50-60%. Given the scale of ECW projects, we

believe its initial cost will be higher, as the Group strives to

add value by providing world-class eco living through

innovative designs.

Right productRight productRight productRight productssss at right locationsat right locationsat right locationsat right locations. Most of ECW’s projects will

be gated and guarded landed properties which are expected

receive stronger demand than high-rise projects, particularly

in Iskandar Malaysia where there will be massive supply of

condos flooding the market when the launched projects over

the past few years are completed in the near term.

Aggressive launch pipelineAggressive launch pipelineAggressive launch pipelineAggressive launch pipeline. Despite the ambitious sales target

amid weaker sentiments after the cooling measures

announced by the government in Oct13, ECW’s

management’s previous track record suggests that achieving

the feat may not be far-fetched. The overwhelming response

for some of the launches in recent months further reinforces

our view that ECW’s unrivalled brand name is likely to attract

buyers at an unprecedented pace.

Explosive earnings trajectoryExplosive earnings trajectoryExplosive earnings trajectoryExplosive earnings trajectory. We expect ECW’s earnings to

grow exponentially to RM77m in FY15 from RM24m in FY13,

implying an impressive 2-year earnings CAGR of 78%.

StrengthStrengthStrengthStrengthening balance sheetening balance sheetening balance sheetening balance sheet. As part of the proposed

development rights acquisition, ECW will also undertake a

share subscription by EWSB to partly finance its proposed

acquisition of development rights, as well as a proposed

rights issue with warrants to raise RM788m gross proceeds.

The larger balance sheet will enable ECW to pursue its land

banking activity and scale up its business operations to

support its expansion plans.

Company Focus


More catalyst in the pipeline Track record speaks for itselfTrack record speaks for itselfTrack record speaks for itselfTrack record speaks for itself. ECW has been roped in to

participate in the former Pudu Jail redevelopment project,

known as Bukit Bintang City Centre (BBCC) via a 40% equity

stake in the consortium with EPF (20%) and UDA Holdings

Bhd (40%; landowner). It has been reported that the

execution track record of the management team has been

the winning factor for the partnership.

BBCC will be developed on the 20-acre prime land in Bukit

Bintang with a potential GDV of RM7bn. The mixed

development will comprise three residential towers housing

2,000 units, a 40-storey block, a 1m-sf shopping mall, a

Malaysian grand bazaar, mosque, al fresco dining terraces

and a food court to complete this 5m NLA project.

At this juncture, ECW is still working closely in consultation

with UDA Holdings to come up with a conceptual master

plan. Assuming the project is developed over a 10-year period

with a pretax margin of 20%, we estimate that BBCC will

enhance our ex-all RNAV by 8 sen (3%).

Venture into AustraliaVenture into AustraliaVenture into AustraliaVenture into Australia. ECW has also received an offer from

EWSB to sell 1.18 acres of land in Church Street, Parramatta,

NSW 2150, Australia at the same price and on the same

terms as that secured by EWSB from the vendor. The

purchase price of AUD28m implies a land cost of AUD545psf.

The land is located on the southern fringe of the Parramatta

CBD retail precinct, close to the Westfield Shopping Precinct,

railway station and bus interchange. ECW’s board has yet to

make a decision on the offer, and an EGM will be convened

should the board accept the offer.

Batu KawanBatu KawanBatu KawanBatu Kawan landlandlandland. Pursuant to the request of proposal (RFP)

by the Penang Development Corporation in Aug13 for the

development of an international theme park and an 18-hole

golf resort development at Bandar Cassia in Batu Kawan,

ECW has participated in the RFP for golf course development,

where the winning bidder will have to develop a golf course

on 60 ha of the total 190 ha land. While there is no official

confirmation on the status of the successful bidders, we

understand that ECW is the only company that has expressed

interest to bid where the opening bid started at RM45psf.

These potential land bank acquisitions clearly illustrate the

management’s unbridled desire to grow ECW into one of the

top property developers in Malaysia. As it is, ECW already has

ready launch pipeline which could keep the company busy

over the next decade, by virtue of its massive 4,400-acre land

bank.

Key Risks Relatively weaker property sentimentRelatively weaker property sentimentRelatively weaker property sentimentRelatively weaker property sentiment. The strong property

price surge over the last few years, coupled with recent

tightening measures, could hamper property sales as property

buyers are getting more cautious with their property

purchase decisions.

Tighter bank lendingTighter bank lendingTighter bank lendingTighter bank lending. Stricter lending guidelines by banks due

to rising housing debt may lead to softer sales as certain

property buyers have been facing difficulty in obtaining

mortgage loans.

Rising costRising costRising costRising costssss. In tandem with rising property prices,

construction and building material costs have been on the

uptrend and may erode developers’ profitability.

Company Focus


Key Assumptions

FY FY FY FY OctOctOctOct 2011201120112011AAAA 2012201220122012AAAA 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF

Property sales (RMm) 1,769.8 1,945.1 3,092.5

Sensitivity Analysis 2012012012015555

Sales +/- 1% Net Profit +/-

0.5%

Income Statement (RM m)


Revenue 56 65 156 84 942 2,318

Cost of Goods Sold (44) (43) (108) (59) (559) (1,524)

Gross ProfitGross ProfitGross ProfitGross Profit 12121212 22222222 48484848 26262626 383383383383 793793793793

Other Opng (Exp)/Inc (11) (11) (15) (13) (141) (348)

Operating ProfitOperating ProfitOperating ProfitOperating Profit 0000 11111111 34343434 13131313 241241241241 446446446446

Other Non Opg (Exp)/Inc 0 0 0 0 0 0

Associates & JV Inc 0 0 0 0 0 0

Net Interest (Exp)/Inc (2) (3) (4) (3) (138) (179)

Exceptional Gain/(Loss) 0 0 0 0 0 0

PrePrePrePre----tax Profittax Profittax Profittax Profit (2)(2)(2)(2) 8888 30303030 10101010 103103103103 267267267267

Tax 0 (1) (5) (2) (26) (67)

Minority Interest 0 0 0 0 0 0

Preference Dividend 0 0 0 0 0 0

Net ProfitNet ProfitNet ProfitNet Profit (2)(2)(2)(2) 7777 24242424 8888 77777777 200200200200

Net Profit before Except. (2) 7 24 8 77 200

EBITDA 0 11 34 13 241 446

Growth

Revenue Gth (%) nm 17.2 139.4 (46.0) 1,015.6 146.2

EBITDA Gth (%) nm 13,233.3 201.3 (61.2) 1,743.0 84.5

Opg Profit Gth (%) nm 12,881.0 207.2 (60.9) 1,743.0 84.5

Net Profit Gth (%) nm nm 237.0 (67.6) 882.3 158.6

Margins & Ratio

Gross Margins (%) 20.6 33.7 30.9 30.5 40.6 34.2

Opg Profit Margin (%) 0.2 16.7 21.4 15.5 25.6 19.2

Net Profit Margin (%) (3.7) 11.0 15.5 9.3 8.2 8.6

ROAE (%) (1.4) 2.5 7.9 0.6 3.1 7.5

ROA (%) (0.9) 1.5 5.0 0.3 1.5 3.2

ROCE (%) 0.0 2.2 6.2 0.4 3.7 6.3

Div Payout Ratio (%) N/A 0.0 0.0 0.0 0.0 0.0

Net Interest Cover (x) 0.0 3.9 8.6 3.7 1.7 2.5


Margins Trend

7.0%

9.0%

11.0%

13.0%

15.0%

17.0%

19.0%

21.0%

23.0%

25.0%

27.0%

2012A 2013A 2014F 2015F 2016F

Operating Margin % Net Income Margin %

Underpinned by strong unbilled sales of RM1.1bn as at Mar14

Company Focus


Balance Sheet (RM m) FY FY FY FY OcOcOcOctttt 2011201120112011AAAA 2012201220122012AAAA 2013201320132013AAAA 2014201420142014FFFF 2015201520152015FFFF 2016201620162016FFFF

Net Fixed Assets 2 1 1 1 101 201

Invts in Associates & JVs 0 0 0 0 0 0

Other LT Assets 319 303 302 4,110 4,230 4,146

Cash & ST Invts 4 7 25 413 412 208

Inventory 29 29 40 21 157 386

Debtors 14 45 40 21 238 586

Other Current Assets 81 106 82 79 553 1,094

Total AssetsTotal AssetsTotal AssetsTotal Assets 447447447447 491491491491 489489489489 4,6464,6464,6464,646 5,6925,6925,6925,692 6,6216,6216,6216,621

ST Debt

26 30 47 2,057 2,057 2,057

Creditor 17 54 40 22 471 1,159

Other Current Liab 0 0 4 2 26 67

LT Debt 38 34 5 5 500 500

Other LT Liabilities 74 74 72 72 72 72

Shareholder’s Equity 289 296 319 2,486 2,564 2,763

Minority Interests 3 3 3 3 3 3

Total Cap. & Liab.Total Cap. & Liab.Total Cap. & Liab.Total Cap. & Liab. 447447447447 491491491491 489489489489 4,6464,6464,6464,646 5,6925,6925,6925,692 6,6216,6216,6216,621

Non-Cash Wkg. Capital 107 126 118 98 451 840

Net Cash/(Debt) (61) (57) (27) (1,648) (2,145) (2,349)

Debtors Turn (avg days) 46.3 165.5 98.7 131.5 50.3 64.9

Creditors Turn (avg days) 69.7 299.9 158.7 191.4 160.8 195.1

Inventory Turn (avg days) 118.0 245.4 116.5 189.6 58.2 65.0

Asset Turnover (x) 0.2 0.1 0.3 0.0 0.2 0.4

Current Ratio (x) 3.0 2.2 2.0 0.3 0.5 0.7

Quick Ratio (x) 0.4 0.6 0.7 0.2 0.3 0.2

Net Debt/Equity (X) 0.2 0.2 0.1 0.7 0.8 0.8

Net Debt/Equity ex MI (X) 0.2 0.2 0.1 0.7 0.8 0.9

Capex to Debt (%) 0.5 0.1 0.1 0.0 3.9 3.9


Asset Breakdown Net Fixed Assets -0.3%

Assocs'/JVs -0.0%

Bank, Cash and Liquid Assets -90.4%

Inventory -4.7%

Debtors -4.7%

Debt assumed from proposed corporate exercise

Company Focus


Cash Flow Statement (RM m)


Pre-Tax Profit (2) 8 30 10 103 267

Dep. & Amort. 0 0 0 0 0 0

Tax Paid 0 0 0 (4) (2) (26)

Assoc. & JV Inc/(loss) 0 0 0 0 0 0

Chg in Wkg.Cap. 28 (1) 6 21 (295) (345)

Other Operating CF (8) (3) (6) 0 0 0

Net Operating CFNet Operating CFNet Operating CFNet Operating CF 17171717 4444 30303030 27272727 (194)(194)(194)(194) (105)(105)(105)(105)

Capital Exp.(net) 0 0 0 0 (100) (100)

Other Invts.(net) 0 0 0 (427) (203) 0

Invts in Assoc. & JV 0 0 0 0 0 0

Div from Assoc & JV 0 0 0 0 0 0

Other Investing CF 0 0 0 0 0 0

Net Investing CFNet Investing CFNet Investing CFNet Investing CF 0000 0000 0000 (427)(427)(427)(427) (303)(303)(303)(303) (100)(100)(100)(100)

Div Paid 0 0 0 0 0 0

Chg in Gross Debt (19) (5) (11) 0 495 0

Capital Issues 0 0 0 788 0 0

Other Financing CF 0 0 0 0 0 0

Net Financing CFNet Financing CFNet Financing CFNet Financing CF (19)(19)(19)(19) (5)(5)(5)(5) (11)(11)(11)(11) 788788788788 495495495495 0000

Currency Adjustments 0 5 (1) 0 0 0

Chg in Cash (2) 3 18 388 (1) (205)

Opg CFPS (sen) (4.1) 2.1 9.5 0.9 15.4 36.7

Free CFPS (sen) 6.7 1.5 11.9 4.2 (44.7) (31.2)


Capital Expenditure

0

20

40

60

80

100

120

2014F 2015F 2016F

Capital Expenditure (-)

Cash consideration for the proposed acquisitions

Proceeds from rights issue

90% balance payment for Semenyih land acquisition

Company Focus


Quarterly / Interim Income Statement (RM m)

FY FY FY FY OctOctOctOct 1Q1Q1Q1Q2013201320132013 2Q2Q2Q2Q2013201320132013 3Q3Q3Q3Q2013201320132013 4Q4Q4Q4Q2013201320132013 1Q1Q1Q1Q2014201420142014 2Q2Q2Q2Q2014201420142014

Revenue 35 34 44 44 23 27

Cost of Goods Sold (25) (23) (28) (32) (18) (20)

Gross ProfitGross ProfitGross ProfitGross Profit 10101010 11111111 16161616 12121212 5555 7777

Other Oper. (Exp)/Inc (3) (4) (3) (5) (3) (3)

Operating ProfitOperating ProfitOperating ProfitOperating Profit 7777 7777 13131313 7777 2222 3333

Other Non Opg (Exp)/Inc 0 0 0 0 0 0

Associates & JV Inc 0 0 0 0 0 0

Net Interest (Exp)/Inc (1) 0 0 (3) 0 0

Exceptional Gain/(Loss) 0 0 0 0 0 0

PrePrePrePre----tax Profittax Profittax Profittax Profit 6666 7777 13131313 4444 2222 3333

Tax 0 0 (2) (4) (1) 0

Minority Interest 0 0 0 0 0 0

Net ProfitNet ProfitNet ProfitNet Profit 7777 7777 11111111 0000 1111 3333

Net profit bef Except. 7 7 11 0 1 3

EBITDA 7 7 13 7 2 3

Growth

Revenue Gth (%) 42.4 (3.7) 31.1 0.0 (48.6) 18.7

EBITDA Gth (%) 40.7 (1.8) 85.4 (48.9) (64.0) 45.1

Opg Profit Gth (%) 40.7 (1.8) 85.4 (48.9) (64.0) 45.1

Net Profit Gth (%) 98.8 0.6 63.8 (99.8) 2,814.8 226.8

Margins

Gross Margins (%) 28.9 32.1 35.9 26.6 21.9 24.6

Opg Profit Margins (%) 20.3 20.7 29.3 15.0 10.5 12.8

Net Profit Margins (%) 19.0 19.9 24.9 0.1 3.5 9.6

Margins Trend

-5%

0%

5%

10%

15%

20%

25%

30%

35%

2Q2012

3Q2012

4Q2012

1Q2013

2Q2013

3Q2013

4Q2013

1Q2014

2Q2014

Operating Margin % Net Income Margin %


Company Focus


Valuation Premium valuationPremium valuationPremium valuationPremium valuation. ECW is currently trading at 53x FY13 PE.

While the valuation appears excessive at this juncture, we

expect it to moderate to a more palatable level by FY16,

when the full impact of its aggressive property sales will be

reflected. Based on its current share price, we estimate fully-

diluted (before warrant dilution) FY15F PE of 43x and FY16F

PE of 17x, after taking into consideration the RM788m rights

issue with warrants.

We derive our implied TP of RM6.00 after applying a 20%

discount to our ex-all RNAV of RM2.00 (based on

benchmark price of RM5.35). Our property sales

assumptions of RM1.7bn and RM2bn for FY14 and FY15 are

below management’s total target of RM5bn for the coming

two years. This is mainly to account for the weaker property

sentiment amid more cautious spending by potential

property buyers.

Expect strong earnings growthExpect strong earnings growthExpect strong earnings growthExpect strong earnings growth. Given that EWSB has

already achieved RM1.1bn sales as at Mar14, we believe

ECW will continue to ride on the strong sales momentum for

the other pipeline projects. Nevertheless, ECW’s net gearing

level may remain elevated at 0.7x by FY14, as ECW will

assume RM2bn debt from the proposed corporate exercise,

as well as the requirement for more working capital to roll

out its projects.

Solid backing from substantial shareholdersSolid backing from substantial shareholdersSolid backing from substantial shareholdersSolid backing from substantial shareholders. Upon

completion of the proposed corporate exercise (share split,

share subscription, rights issue with warrants, placement),

EWH will be the largest shareholder with a 32% stake, while

Sinarmas Harta and Liew Tian Xiong will own 26% and 11%

respectively. We believe the substantial shareholders will be

committed to drive ECW to greater heights, given its

ambitious plan to catapult ECW into one of the top property

developers in Malaysia.

RNAV

Pro j e c tPro j e c tPro j e c tPro j e c t GDV (R Mm)GDV (R Mm)GDV (R Mm)GDV (R Mm) Pro j e c t NPV@ 1 0%Pro j e c t NPV@ 1 0%Pro j e c t NPV@ 1 0%Pro j e c t NPV@ 1 0%

Ec o Ce n tra lEc o Ce n tra lEc o Ce n tra lEc o Ce n tra l Saujana Glenmarie 90 18

Eco Sky 974 102

Eco Majestic 11,144 820

Eco Sanctuary 8,000 544

Eco Majestic 2 3,500 199

23 ,7 0823 ,7 0823 ,7 0823 ,7 08 1,6 831,6 831,6 831,6 83

Ec o Sou thEc o Sou thEc o Sou thEc o Sou th Eco Botanic 3,794 301

Eco Spring 5,871 280

Eco Tropics 3,400 195

Eco Business Park 1 3,799 416



21 ,8 7321 ,8 7321 ,8 7321 ,8 73 1,7 721,7 721,7 721,7 72

Ec o No rthEc o No rthEc o No rthEc o No rth Eco Terraces 338 46

Eco Meadows 916 109

Eco Macalister 190 29

1 ,4 441 ,4 441 ,4 441 ,4 44 1 841 841 841 84

Tota lTota lTota lTota l 47 ,0 2547 ,0 2547 ,0 2547 ,0 25 3,6 403,6 403,6 403,6 40

R NAVR NAVR NAVR NAV

After tax 2,730

proforma shareholders fund 3,113

5,843

R NAV/s h a reR NAV/s h a reR NAV/s h a reR NAV/s h a re 2.47 Excluding 7-year warrants

e x-ri g hts TPe x-ri g hts TPe x-ri g hts TPe x-ri g hts TP 2 .002 .002 .002 .00 20% discount

I mpl i e d TP (c u m)I mpl i e d TP (c u m)I mpl i e d TP (c u m)I mpl i e d TP (c u m) 6 .006 .006 .006 .00

Source: AllianceDBS

Company Focus


DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows:

STRONG BUYSTRONG BUYSTRONG BUYSTRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)

BUY BUY BUY BUY (>15% total return over the next 12 months for small caps, >10% for large caps)

HOLDHOLDHOLDHOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)

FULLY VALUEDFULLY VALUEDFULLY VALUEDFULLY VALUED (negative total return i.e. > -10% over the next 12 months)

SELL SELL SELL SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)

Share price appreciation + dividends GENERAL DISCLOSURE/DISCLAIMER GENERAL DISCLOSURE/DISCLAIMER GENERAL DISCLOSURE/DISCLAIMER GENERAL DISCLOSURE/DISCLAIMER This report is prepared by AllianceDBS Research Sdn Bhd (“ADBSR”) (formerly known as HwangDBS Vickers Research Sdn Bhd), a subsidiary of Alliance Investment Bank Berhad (“AIBB”) and an associate of DBS Vickers Securities Holdings Pte Ltd (“DBSVH”). This report is solely intended for the clients of DBS Bank Ltd and DBS Vickers Securities (Singapore) Pte Ltd, its respective connected and associated corporations and affiliates (collectively, the “DBS Vickers Group”) only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of ADBSR. The research set out in this report is based on information obtained from sources believed to be reliable and ADBSR, its holding company AIBB, their respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the “Alliance Bank Group”) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial advice. The Alliance Bank Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The Alliance Bank Group, along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. The Alliance Bank Group may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other banking services for these companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies. Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the company (or companies) referred to in this report. The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by the Alliance Bank Group (and/or any persons associated with the aforesaid entities), that: (a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and (b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk

assessments stated therein.

Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies) mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the commodity referred to in this report. DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months.

ANALYST CERTIFICATIONANALYST CERTIFICATIONANALYST CERTIFICATIONANALYST CERTIFICATION The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of the date the report is published, the analyst and his/her spouse and/or relatives who are financially dependent on the analyst, do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities).

COMPANYCOMPANYCOMPANYCOMPANY----SPECIFIC / RESPECIFIC / RESPECIFIC / RESPECIFIC / REGULATORY DISCLOSURES GULATORY DISCLOSURES GULATORY DISCLOSURES GULATORY DISCLOSURES

1.1.1.1. DBS Bank Ltd., DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”), their subsidiaries and/or other affiliates do not have a proprietary position in the securities recommended in this report as of 17 Jul 2014.

2.2.2.2. DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates may beneficially own a total of 1% of any class of common equity securities of the company mentioned as of 21 Jul 2014.

3.3.3.3. Compensation for investment banking services:Compensation for investment banking services:Compensation for investment banking services:Compensation for investment banking services:

Company Focus


DBS Bank Ltd., DBSVS, DBSVUSA, their subsidiaries and/or other affiliates may have received compensation, within the past 12 months, and within the next 3 months may receive or intends to seek compensation for investment banking services fromthe company mentioned.

DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.

RESTRICTIONS ON DISTRIBUTIONRESTRICTIONS ON DISTRIBUTIONRESTRICTIONS ON DISTRIBUTIONRESTRICTIONS ON DISTRIBUTION

GeneralGeneralGeneralGeneral This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

AustraliaAustraliaAustraliaAustralia This report is not for distribution into Australia.

Hong KongHong KongHong KongHong Kong This report is being distributed in Hong Kong by DBS Vickers (Hong Kong) Limited which is licensed and regulated by the Hong Kong Securities and Futures Commission.

IndonesiaIndonesiaIndonesiaIndonesia This report is being distributed in Indonesia by PT DBS Vickers Securities Indonesia.

MalaysiaMalaysiaMalaysiaMalaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR") (formerly known as HwangDBS Vickers Research Sdn Bhd). Recipients of this report, received from ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other services from the subject companies.

Wong Ming Tek, Executive Director, ADBSR

SingaporeSingaporeSingaporeSingapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No. 198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from, or in connection with the report.

ThailandThailandThailandThailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Research reports distributed are only intended for institutional clients only and no other person may act upon it.

United United United United KingdomKingdomKingdomKingdom

This report is being distributed in the UK by DBS Vickers Securities (UK) Ltd, who is an authorised person in the meaning of the Financial Services and Markets Act and is regulated by The Financial Conduct Authority. Research distributed in the UK is intended only for institutional clients.

DubaiDubaiDubaiDubai

This research report is being distributed in The Dubai International Financial Centre (“DIFC”) by DBS Bank Ltd., (DIFC Branch) having its office at PO Box 506538, 3

rd Floor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC),

Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon it.

United StatesUnited StatesUnited StatesUnited States Neither this report nor any copy hereof may be taken or distributed into the United States or to any U.S. person except in compliance with any applicable U.S. laws and regulations. It is being distributed in the United States by DBSVUSA, which accepts responsibility for its contents. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to herein should contact DBSVUSA directly and not its affiliate.

Other Other Other Other jurisdictionsjurisdictionsjurisdictionsjurisdictions

In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified, professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

AllianceDBS ResAllianceDBS ResAllianceDBS ResAllianceDBS Research Sdn Bhdearch Sdn Bhdearch Sdn Bhdearch Sdn Bhd (128540 U) (formerly known as HwangDBS Vickers Research Sdn Bhd)

19th

Floor, Menara Multi-Purpose, Capital Square, 8 Jalan Munshi Abdullah 50100

Kuala Lumpur, Malaysia. Tel.: +603 2604 3333 Fax: +603 2604 3921 email : [email protected]

malaysia industry focus property - dbs bank | singapore 06-dec-10 uem sunrise bangi 463.5 268.5 13.3...

Documents