MCI (P) 129/11/2012 Ref No: SGMN2012_0246 1 of 16

Phillip Securities Research Pte Ltd

Singapore

Morning Note

20 December 2012

Fundamental Call STAMFORD LAND – Update (Chan Wai Chee) Recommendation: BUY (Maintain) Previous close: S$0.565 Target price: S$0.760 Fair value: S$0.760

Stable 2Q13 hotel operating earnings. Quiet M&A in Australia in the last 2-3 months. Hotel supply/demand fundamentals remain. Maintain BUY at fair value target.

SUNPOWER Group – Result (Chan Wai Chee) Recommendation: BUY (Maintain) Previous close: S$0.180 Target price: S$0.250 Fair value: S$0.274

A hump 3Q12: receivable impairment; sale reversal. Substantial shareholder, AJ, is still selling. RIM values it at $0.274 but due to market’s obsession with debt-leverage, further discount 9%. BUY, at S$0.20 or below.

COMBINE WILL – Update (Chan Wai Chee) Recommendation: BUY (Maintain) Previous close: S$0.90 Target price: S$0.930 Fair value: S$1.85

Dull result in 3Q12. OEM squeeze is on in the industry. RIV values it at S$1.85, but due to market’s obsession with debt-leverage, target at S$0.93. Maintain BUY.

Source: Phillip Securities Research Pte Ltd

Morning Note 20 December 2012

2 of 15

Morning Commentary - STI: +0.06% to 3158.6 - MSCI SE Asia: +0.43% to 866.1 - Hang Seng: +0.57% to 22623.4 - MSCI APxJ: +0.39% to 465.7 - Euro Stoxx 50: +0.42% to 2654.7 - S&P500: -0.76% to 1435.8 MARKET OUTLOOK: By Ng Weiwen, Macro Analyst We are approaching the Mayan Apocalypse (21st Dec) with great trepidation. Well, 21st Dec (Fri) is the last Friday before lawmakers typically break for the festive (Christmas-New Year) week and serve as a sign post of how Congress will act (though the calendar marker is still Dec 31st). On account of the continued political gridlock over the fiscal budget deal, markets -the S&P 500 and DJIA- slumped from the opening bell and closed near their respective intra-day low. At this juncture, we are still seeing political posturing and will have a high noon on the Republican's 'Plan B'. While Republican House Speaker John Boehner conceded the possibility of tax increases (for those earning more than US$1m), Obama was looking at raising the threshold of tax hikes to those earning US$400k (from US$250k but still lower than the House Republican's threshold). Furthermore, there is also disagreement on the extent of spending cuts. Following the 6 notch upgrade of Greece debt from Selective Default to B- with a stable outlook, the perception is that the tail risk of a 'Gre-exit' has receded significantly. But we expect Greece’s problems to resurface in 2013 on account of : (i) Greece possibly failing to adhere to the conditions of the rescue package, which will result in Greece being ineligible to receive further aid; (ii) Even if Greece managed to meet the Troika’s demands, the bail-out could be in question if Greece contracts more-than-expected in 2013, resulting in an upward revision on expectations of Greece’s financing needs (iii) While the bailout program will reduce Greece’s debt to 128% of GDP by 2020, it will still be higher than the IMF’s target of 124 %. Even at 124% milestone, it merely was where it was at 2010; will Greece’s debt be sustainable? The STI has been testing the 3150 support level a couple times. If the index decisively breaks this 3150 support level, clients can consider entering short positions (with tight stops) on Straits Times Index SGD5 CFD (STI) and Singapore Index SGD20 CFD (SMSCI). SECTOR/STRATEGY REPORTS: - Singapore Sector Reports: Telecommunications, 12 Dec / Banks, 5 Dec / Commodities Sector 3 Dec / Property, 27 Nov / Transport, 19 Nov - Country Strategy: China & HK, 19 Dec / Thai, 19 Dec / ASEAN, 5 Dec / US, 24 Oct - Global Macro, Asset Strategy: Update, 25 Oct Source: Phillip Securities Research Pte Ltd

Morning Note 20 December 2012

3 of 15

Macro Data In US, the housing market recovery continues to gain traction, which probably also received a boost from re-construction efforts following Hurricane Sandy. Though housing starts declined 3.0% m-m sa to 861,000 saar, housing permits ( a proxy for future construction) surged 3.6% to 899,000 saar (multi-year high) in Nov. In Malaysia, inflation remained benign at 1.3% in Nov, similar to the pace registered in the preceding month. Looking ahead, we expect Bank Negara Malaysia (BNM) to continue to stand pat, maintaining the Overnight Policy Rate at 3%. Amid a global slowdown as well as persistent external downside risks, we might have been tempted to forecast a rate cut to mitigate the growth downside given the benign inflation context. However, in view of the impending elections as well as resilient domestic demand, we maintain our view that BNM will continue to stand pat till after, and re-assess its policy rate position post-elections (barring any extreme deterioration in the global macro environment). In Euro zone, Germany’s business confidence index rose for a second month in Dec, reporting 102.4, compared to 101.4 in Nov, indicating an improving business climate. The gauge for the current situation slipped to 107.1 from 108.1, while the gauge for expectations rose to 97.9, the highest since May, from 95.2 in November. Italy’s industrial sales fell by 0.2% m-m in Oct, a second straightly monthly fall after the 4.2% m-m drop in Sept. Domestic orders fell by 1.0% m-m, a second straight monthly fall, after the 3.6% m-m fall in Sept while Overseas orders rose by 1.5% m-m, after a 5.3% m-m drop in Sept. The ECB revised down its economic forecasts for the euro region earlier this month, predicting contractions of 0.5% this year and 0.3% in 2013. The Bundesbank also lowered its growth outlook for Germany, anticipating expansions of 0.7% for 2012 and 0.4% for 2013. In UK, BOE policy makers voted 8-1 to leave the bond purchase program on hold in Dec as the inflation remained high at 2.7% and the immediate risks from Euro zone receded. The central bank is likely to hold the benchmark interest rate at the record low of 0.5% for the near future. In Japan, total export volume fell by 7.5% y-y in Nov, marking a sixth consecutive y-y fall, after the 8.1% y-y contraction in Oct. Total import volume fell by 0.9% y-y, compared to 1.1% y-y drop in Oct. On m-m basis, export and import volume rose by 0.3% m-m and 2.3% m-m respectively in Nov, after the 2.9% m-m and 9.7% m-m drops in Oct. Trade deficit reported 868.5 bn Yen, compared to 624.3 bn Yen in Oct. A separate report shows that the nation’s all industry index rose by 0.2% m-m in Oct, after the 0.4% m-m fall in Sept. The recent decline in Yen helps improve the nation’s export outlook in 2013. In Taiwan, the central bank leaved the benchmark interest rate unchanged at 1.875% for a six straight meeting amid signs of improving growth and tame inflation. Export, which makes up about 2/3 of Taiwan’s GDP, is likely to get support from the recovery of China. The government forecasted the GDP to expand 1.13% in 2012 and 3.15% in 2013. Source: Phillip Securities Research Pte Ltd

Source: Bloomberg

STI - Index Members

4.4% 2.9%

2.9%

2.6% 1.8%

1.3%

1.3%

1.3%

0.7%

0.6%

0.5%

0.4%

0.3%

0.3%

0.3%

0.1%

0.1%

0.0%

0.0%

0.0%

-0.2%

-0.3%

-0.5%

-0.5%

-0.6%

-0.7%

-1.1%

-1.5%

-1.5%

-2.0%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Olam

GLP

Com

fortDelG

ro

Noble G

roup

Sem

bcorp Ind.

Sem

bcorp Mar.

Wilm

ar

SPH

Genting S

P

OC

BC

Capitam

all Trust

SIA

SG

X

HK Land

Starhub

F&N

DBS

ST E

ng.

SIA

Eng.

Keppel C

orp. Ltd

Jardine C&

C

Jardine Stra.

UO

B

Capitam

alls Asia

Singtel

IHH

Capitaland

CD

L

Golden A

gri-R.

Jardine Mat.

Morning Note 20 December 2012

4 of 15

Company Highlights BBR Holdings (S) Ltd announced that it has just won two contracts worth S$182.9 million to build a total of 1,282 units of Housing and Development Board flats. The first contract is for building and contingency works for 808 HDB flats at Kallang Whampoa and is scheduled to be completed in different phrases by end 2015. The works include two blocks, a roof garden, resident committee centre, minimarket, precinct pavilion, an education centre, link bridges and other related civil engineering works. The second contract is for similar type of works for 474 HDB flats at Sengkang Neighbourhood 2 and is scheduled to be completed in different phrases by April 2015. The works include seven blocks, a childcare centre, roof garden, driveway and service roads. (Closing price: S$0.245, 0%) COSCO Corporation (Singapore) Limited announced that the contract (detailed in the announcement of 10 September 2012) for one unit of Harsh Environment Semi-Submersible Accommodation Rig, signed by COSCO Qidong Offshore Co. Ltd, a subsidiary of the Company’s 51% owned subsidiary, COSCO Shipyard Group Co., Ltd with Axis Offshore, a joint venture between Danish shipowner, J. Lauritzen and Norwegian private equity fund, HitecVision, has been made effective at a value of over US$200 million. The rig is scheduled for delivery in Q1 2015. (Closing price: S$0.885, 0%) IEV Holdings Limited announced that, on 16 December 2012, its 49% owned associate, IEV (Malaysia) Sdn. Bhd. received a Letter of Award for a major transportation and installation project by an established oil and gas operator for a deepwater facility in the South East Asian region. The Project is scheduled to commence in January 2013 and is expected to be completed in 3 years. As the LOA is subject to a formal contract to be signed between the various parties involved in the Project, the Company will continue to update its shareholders with further details of the Project and Contract where appropriate and when such specific terms of the Contract have been agreed upon and finalised. (Closing price: S$0.480, -1.031%) Source: SGX Masnet, The Business Times

Morning Note 20 December 2012

5 of 15

79.38 +0.02% 295.62 +0.01%

108.63 +0.56% 1.801 -0.02%

1,667.25 -0.08% 13,251.97 -0.74%

546.65 +0.49% Straits Times Index 3,158.57 +0.06%

22,623.37 +0.57% 10,160.40 2.39%

Dollar Index ThomReuters/JefferiesCRB

Crude oil, Brent (US$/bbl) US Treasury 10yr Yield

Gold (US$/Oz) DJI

MSCI Asia x-Japan

Hang Seng Index Nikkei 225 Index

Source: Bloomberg

1.201.401.601.802.002.202.40

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

2,500

2,700

2,900

3,100

3,300

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

11,000

12,000

13,000

14,000

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

17,00018,00019,00020,00021,00022,00023,000

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

7,500

8,500

9,500

10,500

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

1,500

1,600

1,700

1,800

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

78

80

82

84

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

260

280

300

320

340

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

90

100

110

120

130

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

420

440460480500

520540

Dec-11

Jan-12

Feb-12

Mar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

Oct-12

Nov-12

Morning Note 20 December 2012

6 of 15

Phillip Securities Research - Singapore Stocks Coverage

Company Analyst Rating Target Price (S$)

Current Price (S$)

Difference to Target Price (%)

GOLDEN AGRI-RESOURCES LTD Nicholas Ong Accumulate 0.680 0.64 6.3%WILMAR INTERNATIONAL LTD Nicholas Ong Accumulate 3.47 3.18 9.1%

GENTING SINGAPORE PLC Magdalene Choong Neutral 1.15 1.37 -16.1%COMBINE WILL INTERNATIONAL H Chan Wai Chee Buy 1.85 0.90 105.6%

DBS GROUP HOLDINGS LTD Ken Ang Neutral 15.10 14.91 1.3%OVERSEA-CHINESE BANKING CORP Ken Ang Reduce 8.30 9.80 -15.3%UNITED OVERSEAS BANK LTD Ken Ang Accumulate 18.00 19.67 -8.5%SINGAPORE EXCHANGE LTD Ken Ang Neutral 6.77 7.02 -3.6%

CAPITALAND LTD Bryan Go Accumulate 3.97 3.63 9.4%CAPITAMALLS ASIA LTD Bryan Go Accumulate 1.93 1.96 -1.5%HO BEE INVESTMENT LTD Bryan Go Neutral 1.44 1.91 -24.4%KEPPEL LAND LTD Bryan Go Neutral 3.28 3.99 -17.8%OVERSEAS UNION ENTERPRISE Bryan Go Neutral 2.83 2.83 0.0%SC GLOBAL DEVELOPMENTS LTD Bryan Go Neutral 1.80 1.965 -8.4%GLOBAL PREMIUM HOTELS LTD Chan Wai Chee Buy 0.305 0.25 22.0%STAMFORD LAND CORP LTD Chan Wai Chee Buy 0.76 0.565 34.5%SINGXPRESS LAND LTD Chan Wai Chee Buy 0.019 0.016 18.8%

CDL HOSPITALITY TRUSTS Travis Seah Neutral 1.970 1.92 2.9%PARKWAYLIFE REAL ESTATE Travis Seah Accumulate 2.33 2.14 8.9%SABANA SHARIAH COMP IND REIT Travis Seah Neutral 1.15 1.14 1.3%

SATS LTD Derrick Heng Accumulate 2.94 2.92 0.7%SIA ENGINEERING CO LTD Derrick Heng Buy 5.00 4.40 13.6%SINGAPORE TECH ENGINEERING Derrick Heng Accumulate 3.96 3.87 2.3%KEPPEL CORP LTD Change of Analyst 10.88SEMBCORP INDUSTRIES LTD Change of Analyst 5.19SEMBCORP MARINE LTD Change of Analyst 4.61HU AN CABLE HOLDINGS LTD Chan Wai Chee Buy 0.19 0.12 65.2%SUNPOWER GROUP LTD Chan Wai Chee Buy 0.250 0.18 38.9%

SINGAPORE AIRLINES LTD Derrick Heng Buy 13.40 11.00 21.8%TIGER AIRWAYS HOLDINGS LTD Derrick Heng Sell 0.45 0.72 -37.5%NEPTUNE ORIENT LINES LTD Derrick Heng Accumulate 1.36 1.12 22.0%SMRT CORP LTD Derrick Heng Sell 1.35 1.70 -20.4%COMFORTDELGRO CORP LTD Derrick Heng Buy 1.80 1.77 2.0%HENGYANG PETROCHEMICAL LOGIS Chan Wai Chee Buy 0.61 0.20 209.6%

SINGAPORE TELECOM LTD Ken Ang Neutral 3.06 3.35 -8.7%STARHUB LTD Ken Ang Neutral 3.20 3.87 -17.3%M1 LTD Ken Ang Neutral 2.41 2.71 -11.1%

Phillip Securities Research - US Stocks Coverage

Company Analyst Rating Target Price (US$)

Current Price (US$)

Difference to Target Price (%)

LAS VEGAS SANDS CORP Magdalene Choong Neutral 40.00 47.38 -15.6%WYNN RESORTS LTD Magdalene Choong Neutral - 113.64 -MGM RESORTS INTERNATIONAL Magdalene Choong Accumulate 12.90 11.54 11.8%Source: Phillip Securities Research Pte Ltd

Commodities & Supply Chain Managers

Consumer Goods

Banking & Finance

Property (Developers)

Property (REITS)

Industrials (Capital Goods)

Industrials (Transportation)

Technology & Communications

Morning Note 20 December 2012

7 of 15

FTSE ST Breakdown (3M % Change)

STI 3.1%

6.6%

-3.5%

4.7%

-1.3%0.5%

1.4%

-4.8%

5.3%

10.6%

-9.4%

-3.6%

1.2%

ST China

ST Real Estate

ST Re Invest Trust

ST Oil & Gas

ST Basic Materials

ST Industrials

ST Consumer Goods

ST Consumer Service

ST Telecommunicate

ST Utilites

ST Financials

ST Technology6.6%

ST Healthcare

Source: Bloomberg

Last % Chg0.090 15.40.140 13.80.235 11.90.013 8.30.245 6.5

Last % Chg0.057 -17.40.036 -14.30.008 -11.10.180 -10.00.065 -9.7

SWISSCO HOLDINGS LTD

WEIYE HOLDINGS LTDCEFC INTERNATIONAL LTD

PSL HOLDINGS LTD

COURAGE MARINE GROUP LTDSource: Bloomberg

SUNPOWER GROUP LTD

CHINA ENVIRONMENT LTDVICPLAS INTERNATIONAL LTD

Top Gainers (%)FTSE ST Market Cap. Breakdown (3M % Change)

Turnover ('mn shares)

Top Losers (%)

MDR LTD

UNCHANGED

NEXT-GENERATION SATELLITE CO

Source: Bloomberg Source: SGX

3,3001,476

204225527

Turnover (S$'mn)UPDOWN

4.5%

4.6% 3.7%

ST All Share

ST Fledgling

ST Small Cap

ST Mid Cap

STI3.1%

3.5%

Morning Note 20 December 2012

8 of 15

Source: Bloomberg

World Index

JCI -0.59% 4,275.86

HSI 0.57% 22,623.37

KLCI 0.37% 1,665.64

NIKKEI 2.39% 10,160.40

KOSPI 0.51% 1,993.09

SET 1.13% 1,378.40

SHCOMP -0.01% 2,162.24 SENSEX 0.57% 19,476.00

ASX 0.49% 4,617.78

FTSE 100 0.43% 5,961.59

DOW -0.74% 13,251.97

S&P 500 -0.76% 1,435.81

NASDAQ -0.33% 3,044.37 COLOMBO 0.09% 5,512.66

STI 0.06% 3,158.57

ETF % Change Change LastABF SINGAPORE BOND INDX FUND -1.58 -0.02 1.18DB X-TRACKERS CSI300 ETF +0.25 +0.02 7.99DB X-TRACKERS FTSE VIETNAM +2.01 +0.41 20.85DB X-TRACKERS MSCI INDONE -0.46 -0.07 15.07DB X-TRACKERS S&P 500 INV DA -0.72 -0.25 34.57DB X-TRACKERS S&P CNX NIFTY +1.35 +1.47 110.64ISHARES MSCI INDIA INDEX ETF +1.26 +0.08 6.41LYXOR ETF CHINA ENTERPRISE +0.27 +0.04 14.84LYXOR ETF HANG SENG INDEX 10 +0.35 +0.01 2.87LYXOR ETF JAPAN TOPIX +2.49 +0.02 0.99LYXOR ETF MSCI INDIA +3.31 +0.46 14.36NIKKO AM SINGAPORE STI ETF -0.62 -0.02 3.20SPDR GOLD TRUST -1.47 -2.42 162.50

ETF Perform ance

Source: Bloomberg

Morning Note 20 December 2012

9 of 15

EX Date Company Type Net Amount Currency Frequency Record Date Payout Date12/24/2012 SINGAPORE TELECOM LTD Interim 0.0680 SGD Semi-Anl 12/27/2012 1/17/201312/26/2012 SWIBER HOLDINGS LTD Interim 0.0100 SGD Irreg 12/28/2012 1/18/20131/2/2013 HIAP SENG ENGINEERING LTD Interim 0.0050 SGD Semi-Anl 1/4/2013 1/18/20131/11/2013 NETEASE INC-ADR Special Cash 0.9800 USD None 1/15/2013 1/22/20131/15/2013 GLOBAL PREMIUM HOTELS LTD Interim 0.0020 SGD Irreg 1/17/2013 1/28/20131/22/2013 WBL CORP LTD Final 0.0500 SGD Semi-Anl 1/24/2013 2/18/20131/22/2013 ASIA PACIFIC BREWERIES LTD Final 0.8500 SGD Semi-Anl 1/24/2013 2/6/20131/24/2013 THAI VILLAGE HOLDINGS LTD Regular Cash 0.0080 SGD Annual 1/28/2013 2/13/20131/29/2013 MERMAID MARITIME PCL Regular Cash 0.0274 THB Annual 1/31/2013 2/22/20132/1/2013 FRASER AND NEAVE LTD Final 0.1200 SGD Semi-Anl 2/5/2013 2/21/20132/6/2013 PNE INDUSTRIES LTD Regular Cash 0.0040 SGD Annual 2/8/2013 2/25/2013

Corporate Action : Dividend

Source: Bloomberg

EX Date Company Type Subscription Price Currency Term Record Date12/28/2012 OLAM INTERNATIONAL LTD Preferred Right 0.9500 SGD 1 per 1 1/2/2013Source: Bloomberg

Corporate Action: Rights

Morning Note 20 December 2012

10 of 15

Name Expected Report DateSingapore Press Holdings Ltd January 14, 2013Singapore Exchange Ltd January 16, 2013CapitaMall Trust January 18, 2013Keppel Corp Ltd January 25, 2013SIA Engineering Co Ltd January 31, 2013Singapore Airlines Ltd February 1, 2013StarHub Ltd February 1, 2013CapitaMalls Asia Ltd February 8, 2013DBS Group Holdings Ltd February 8, 2013ComfortDelGro Corp Ltd February 13, 2013Singapore Telecommunications Ltd February 13, 2013CapitaLand Ltd February 14, 2013Fraser and Neave Ltd February 14, 2013Global Logistic Properties Ltd February 14, 2013Olam International Ltd February 14, 2013Oversea-Chinese Banking Corp Ltd February 20, 2013Genting Singapore PLC February 22, 2013SembCorp Marine Ltd February 22, 2013Singapore Technologies Engineering Ltd February 22, 2013United Overseas Bank Ltd February 22, 2013Wilmar International Ltd February 22, 2013Golden Agri-Resources Ltd February 27, 2013SembCorp Industries Ltd February 27, 2013City Developments Ltd February 28, 2013IHH Healthcare Bhd February 28, 2013Jardine Cycle & Carriage Ltd February 28, 2013Noble Group Ltd February 28, 2013Hongkong Land Holdings Ltd March 1, 2013Jardine Matheson Holdings Ltd March 1, 2013Jardine Strategic Holdings Ltd March 1, 2013Singapore Press Holdings Ltd April 12, 2013Singapore Exchange Ltd April 17, 2013CapitaMall Trust April 18, 2013Keppel Corp Ltd April 19, 2013CapitaMalls Asia Ltd April 25, 2013Jardine Cycle & Carriage Ltd April 25, 2013DBS Group Holdings Ltd April 26, 2013CapitaLand Ltd April 30, 2013StarHub Ltd May 3, 2013SIA Engineering Co Ltd May 7, 2013SembCorp Marine Ltd May 9, 2013Singapore Airlines Ltd May 9, 2013Singapore Technologies Engineering Ltd May 9, 2013United Overseas Bank Ltd May 9, 2013City Developments Ltd May 10, 2013Fraser and Neave Ltd May 10, 2013Genting Singapore PLC May 10, 2013Golden Agri-Resources Ltd May 10, 2013Oversea-Chinese Banking Corp Ltd May 10, 2013SembCorp Industries Ltd May 10, 2013Singapore Telecommunications Ltd May 10, 2013Wilmar International Ltd May 10, 2013ComfortDelGro Corp Ltd May 14, 2013Noble Group Ltd May 14, 2013Olam International Ltd May 15, 2013Source: Bloomberg

Earning Announcement – Singapore

Calendar

Morning Note 20 December 2012

11 of 15

Date Statistic For Survey Prior Date Statistic For Survey Prior12/20/2012 GDP QoQ (Annualized) 3Q T 2.80% 2.70% 12/24/2012 CPI (MOM) - NSA Nov 0.50% -0.20%12/20/2012 Personal Consumption 3Q T 1.40% 1.40% 12/24/2012 CPI (YoY) Nov 3.90% 4.00%12/20/2012 GDP Price Index 3Q T 2.70% 2.70% 12/26/2012 Industrial Production MoM SA Nov 0.30% 3.30%12/20/2012 Core PCE QoQ 3Q T 1.10% 1.10% 12/26/2012 Industrial Production YoY Nov 5.10% -2.10%12/20/2012 Initial Jobless Claims 15-Dec 360K 343K 12/31/2012 Credit Card Bad Debts Nov -- 18.8M12/20/2012 Continuing Claims 8-Dec 3200K 3198K 12/31/2012 Credit Card Billings Nov -- 3356.7M12/20/2012 Bloomberg Consumer Comfort 16-Dec -- -34.5 12/31/2012 Bank Loans & Advances (YoY) Nov -- 17.90%

12/20/2012 Bloomberg Economic Expectations Dec -- 4 12/31/2012 M1 Money Supply (YoY) Nov -- 4.00%

12/20/2012 Philadelphia Fed. Dec -3 -10.7 12/31/2012 M2 Money Supply (YoY) Nov -- 5.40%12/20/2012 Existing Home Sales Nov 4.90M 4.79M 1/2/2013 Automobile COE Open Bid Cat A 2-Jan -- --12/20/2012 Existing Home Sales MoM Nov 2.30% 2.10% 1/2/2013 Automobile COE Open Bid Cat B 2-Jan -- --12/20/2012 Leading Indicators Nov -0.20% 0.20% 1/2/2013 Automobile COE Open Bid Cat E 2-Jan -- --12/20/2012 House Price Index MoM Oct 0.30% 0.20% 1/3/2013 Electronics Sector Index Dec -- 47.412/21/2012 Chicago Fed Nat Activity Index Nov -- -0.56 1/3/2013 Purchasing Managers Index Dec -- 48.812/21/2012 Personal Income Nov 0.30% 0.00% 05-14 JAN GDP (annualized) (QoQ) 4Q A -- -5.90%

US SingaporeEconomic Announcement

Source: BloombergSource: Bloomberg

Morning Note 20 December 2012

12 of 15

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In no event will Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the preparation or issuance of this report, (i) be liable in any manner whatsoever for any consequences (including but not limited to any special, direct, indirect, incidental or consequential losses, loss of profits and damages) of any reliance or usage of this publication or (ii) accept any legal responsibility from any person who receives this publication, even if it has been advised of the possibility of such damages. You must make the final investment decision and accept all responsibility for your investment decision, including, but not limited to your reliance on the information, data and/or other materials presented in this publication. Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this material are as of the date indicated and are subject to change at any time without prior notice. Past performance of any product referred to in this publication is not indicative of future results. This report does not constitute, and should not be used as a substitute for, tax, legal or investment advice. This publication should not be relied upon exclusively or as authoritative, without further being subject to the recipient’s own independent verification and exercise of judgment. The fact that this publication has been made available constitutes neither a recommendation to enter into a particular transaction, nor a representation that any product described in this material is suitable or appropriate for the recipient. Recipients should be aware that many of the products, which may be described in this publication involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made, unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks. Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of any product. Any decision to purchase any product mentioned in this research should take into account existing public information, including any registered prospectus in respect of such product. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this publication, and may have performed services for or solicited business

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from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this publication. Phillip Securities Research or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report may, from time to time maintain a long or short position in securities referred to herein, or in related futures or options, purchase or sell, make a market in, or engage in any other transaction involving such securities, and earn brokerage or other compensation in respect of the foregoing. Investments will be denominated in various currencies including US dollars and Euro and thus will be subject to any fluctuation in exchange rates between US dollars and Euro or foreign currencies and the currency of your own jurisdiction. Such fluctuations may have an adverse effect on the value, price or income return of the investment. To the extent permitted by law, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may at any time engage in any of the above activities as set out above or otherwise hold a interest, whether material or not, in respect of companies and investments or related investments, which may be mentioned in this publication. Accordingly, information may be available to Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, which is not reflected in this material, and Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may, to the extent permitted by law, have acted upon or used the information prior to or immediately following its publication. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited its officers, directors, employees or persons involved in the preparation or issuance of this report, may have issued other material that is inconsistent with, or reach different conclusions from, the contents of this material. The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the applicable law or regulation or which would subject Phillip Securities Research to any registration or licensing or other requirement, or penalty for contravention of such requirements within such jurisdiction. Section 27 of the Financial Advisers Act (Cap. 110) of Singapore and the MAS Notice on Recommendations on Investment Products (FAA-N01) do not apply in respect of this publication. This material is intended for general circulation only and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. The products mentioned in this material may not be suitable for all investors and a person receiving or reading this material should seek advice from a professional and financial adviser regarding the legal, business, financial, tax and other aspects including the suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of that person, before making a commitment to invest in any of such products. Please contact Phillip Securities Research at [65 65311240] in respect of any matters arising from, or in connection with, this document. This report is only for the purpose of distribution in Singapore.

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Contact Information (Singapore Research Team)

Chan Wai Chee Joshua Tan Derrick Heng CEO, Research Head of Research Deputy Head of Research

Special Opportunities Global Macro, Asset Strategy SG Equity Strategist & Transport

+65 6531 1231 +65 6531 1249 +65 6531 1221 yebo@phillip.com.sg joshuatan@phillip.com.sg derrickhengch@phillip.com.sg

Magdalene Choong, CFA Go Choon Koay, Bryan Travis Seah

Investment Analyst Investment Analyst Investment Analyst Regional Gaming Property REITs +65 6531 1791 +65 6531 1792 +65 6531 1229

magdalenechoongss@phillip.com.sg gock@phillip.com.sg travisseahhk@phillip.com.sg

Ken Ang Ng Weiwen Roy Chen Investment Analyst Macro Analyst Macro Analyst

Financials, Telecoms Global Macro, Asset Strategy Global Macro, Asset Strategy +65 6531 1793 +65 6531 1735 +65 6531 1535

kenangwy@phillip.com.sg ngww@phillip.com.sg roychencz@phillip.com.sg

Nicholas Ong Research Assistant Investment Analyst General Enquiries

Commodities, Offshore & Marine +65 6531 1240 (Phone) +65 6531 5440 research@phillip.com.sg

nicholasonghg@phillip.com.sg

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Contact Information (Regional Member Companies)

SINGAPORE

Phillip Securities Pte Ltd Raffles City Tower

250, North Bridge Road #06-00 Singapore 179101

Tel : (65) 6533 6001 Website: www.poems.com.sg

MALAYSIA

Phillip Capital Management Sdn Bhd B-3-6 Block B Level 3 Megan Avenue II, No. 12, Jalan Yap Kwan Seng, 50450

Kuala Lumpur Tel (603) 21628841 Fax (603) 21665099

Website: www.poems.com.my

HONG KONG Phillip Securities (HK) Ltd

Exchange Participant of the Stock Exchange of Hong Kong 11/F United Centre 95 Queensway

Hong Kong Tel (852) 22776600 Fax (852) 28685307

Websites: www.phillip.com.hk

JAPAN

Phillip Securities Japan, Ltd. 4-2 Nihonbashi Kabuto-cho Chuo-ku,

Tokyo 103-0026 Tel: (81-3) 3666-2101 Fax: (81-3) 3666-6090

Website:www.phillip.co.jp

INDONESIA

PT Phillip Securities Indonesia ANZ Tower Level 23B,

Jl Jend Sudirman Kav 33A Jakarta 10220 – Indonesia

Tel (62-21) 57900800 Fax (62-21) 57900809

Website: www.phillip.co.id

CHINA

Phillip Financial Advisory (Shanghai) Co. Ltd No 550 Yan An East Road,

Ocean Tower Unit 2318, Postal code 200001

Tel (86-21) 51699200 Fax (86-21) 63512940

Website: www.phillip.com.cn

THAILAND Phillip Securities (Thailand) Public Co. Ltd

15th Floor, Vorawat Building, 849 Silom Road, Silom, Bangrak,

Bangkok 10500 Thailand Tel (66-2) 6351700 / 22680999

Fax (66-2) 22680921 Website www.phillip.co.th

FRANCE

King & Shaxson Capital Limited 3rd Floor, 35 Rue de la Bienfaisance 75008

Paris France Tel (33-1) 45633100 Fax (33-1) 45636017

Website: www.kingandshaxson.com

UNITED KINGDOM

King & Shaxson Capital Limited 6th Floor, Candlewick House,

120 Cannon Street, London, EC4N 6AS

Tel (44-20) 7426 5950 Fax (44-20) 7626 1757

Website: www.kingandshaxson.com

UNITED STATES

Phillip Futures Inc 141 W Jackson Blvd Ste 3050

The Chicago Board of Trade Building Chicago, IL 60604 USA

Tel +1.312.356.9000 Fax +1.312.356.9005

AUSTRALIA

Octa Phillip Securities Ltd Level 12, 15 William Street,

Melbourne, Victoria 3000, Australia Tel (03) 9629 8288 Fax (03) 9629 8882

Website: www.octaphillip.com