REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 14 October 2014

▌What’s on the Table…

——————————————————————————————————————————————————————————————————————

Tenaga Nasional - Positive 4Q results could spell further delay for FCPT

Based on data from the Energy Commission (EC), we gather that Tenaga's 4QFY8/14 earnings likely improved both qoq and yoy given that it used less gas and distillates during the quarter. This implies that its coal utilisation has normalised, allowing it to take advantage of the current low coal prices. However, while we are positive on Tenaga's 4QFY8/14 earnings, we believe that this has been priced in by the market at its current valuations of 11-12x FY15 P/E. We maintain our view that for Tenaga to trade at closer to market valuations of 15-16x, the fuel cost pass-through (FCPT) mechanism must be implemented to assure investors of earnings visibility. We maintain our Hold call and target price of RM12.56, based on 12.9x FY15 P/E.

▌News of the Day…

—————————————————————————————————————————————————————————————————————— • Petronas is acquiring Norway's Statoil ASA's Azerbaijan assets for US$2.25bn

• Johor Land awarded a RM197m contract to MRCB

• Malaysia’s first electric vehicle likely to be mass-produced by 2017?

• Malaysia plans to build rubberised roads in a bid to boost rubber prices?

• Melati Ehsan to win RM60m contract for an road project in ECER?

• China’s exports increased 15.3% yoy in Sep, biggest increase since Feb-2013

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,750

1,800

1,850

1,900

Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14

———————————————————————————

FBMKLCI

1797.2 -11.68pts -0.65%Oct Futures Nov Futures

1801.5 - (-0.36% ) 1803 - (1.00% )———————————————————————————

Gainers Losers Unchanged155 759 235

———————————————————————————

Turnover1743.54m shares / RM1804.587m

3m avg volume traded 2723.00m shares

3m avg value traded RM2183.19m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,797 3,202 4,913 1,542 23,143 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,797.20 (0.6) (3.7)

FBM100 12,106.26 (0.8) (3.8)

FBMSC 16,935.10 (2.3) 7.9

FBMMES 6,460.82 (2.9) 13.8

Dow Jones 16,321.07 (1.3) (1.5)

NASDAQ 4,213.66 (1.5) 0.9

FSSTI 3,202.15 (0.7) 1.1

FTSE-100 6,366.24 0.4 (5.7)

SENSEX 26,384.07 0.3 24.6

Hang Seng 23,143.38 0.2 (0.7)

JCI 4,913.05 (1.0) 14.9

KOSPI 1,927.21 (0.7) (4.2)

Nikkei 225 15,300.55 (1.2) (6.1)

PCOMP 6,968.09 (2.8) 18.3

SET 1,542.35 (0.7) 18.8

Shanghai 2,366.01 (0.4) 11.8

Taiwan 8,711.39 (2.8) 1.2————————————————————————————————

Close % chg Vol. (m)

SUMATEC 0.355 (5.3) 55.9

PDZ HOLDINGS 0.270 (5.3) 44.1

BERJAYA CORP 0.495 (2.9) 33.7

XOX BHD 0.075 (6.3) 33.4

NI HSIN 0.465 9.4 32.5

MUI 0.235 (4.1) 30.7

DGB ASIA BHD 0.150 0.0 29.2

CENSOF 0.585 (6.4) 28.2————————————————————————————————

Close % chg

US$/Euro 1.2738 (0.12)

RM/US$ (Spot) 3.2615 (0.05)

RM/US$ (12-mth NDF) 3.3351 (0.04)

OPR (% ) 3.25 0.00

BLR (% , CIMB Bank) 6.85 0.00

GOLD ( US$/oz) 1,236.29 0.03

WTI crude oil US spot (US$/barrel) 85.74 (0.09)

CPO spot price (RM/tonne) 2,180.00 0.00

Market Indices

Top Actives

Economic Statistics

————————————————————————————————————————

Terence WONG, CFA T (60) 3 2261 9088 E terence.wong@cimb.com

Show Style "View Doc Map"

Daybreak│Malaysia

October 14, 2014

2

Global Economic News

US Federal Reserve Bank of Chicago President Charles Evans said the "biggest risk" to the economy right now is that the central bank would raise interest rates sooner than it should.

Rates should only be lifted "when we have a great deal of confidence that growth has enough momentum to reach full employment and that inflation will return to a sustainable 2% rate," he said. (WSJ)

European Central Bank (ECB) Executive Board member Peter Praet said he did not see signs of deflation in the euro zone but that such a scenario could unfold if the economy suffered new shocks. (Reuters)

China’s exports increased 15.3% yoy in Sep (+9.4% yoy in Aug), the biggest increase since Feb 2013. Imports rose 7% yoy in Sep (-2.4% yoy in Aug), leaving a trade surplus of US$30.94bn (US$49.84bn in Aug). (Bloomberg)

China will meet its growth target of around 7.5% this year helped by urbanization and economic restructuring, its central bank chief Zhou Xiaochuan said, but added that a property market downturn, the government's efforts to fight pollution and a slowing manufacturing sector are weighing on economic growth in the short term. (WSJ)

China and Russia have signed a local currency swap worth RMB150bn (US$25bn) or RUB815bn, the Chinese central bank said in a statement, adding that the swap is set to last three years and can be extended upon expiry. (Reuters)

India’s consumer price index rose 6.46% yoy in Sep (+7.73% yoy in Aug), the slowest pace since the index was created in Jan 2012. (Bloomberg)

Indonesia’s current account deficit likely shrank in 3Q14 to around 3% of GDP, the vice finance minister said. The current account deficit was 4.27% of GDP in the 2Q14. The government and Bank Indonesia expects a smaller deficit for full year 2014 of around 3.2% of GDP. (Jakarta Globe)

Bank of Thailand (BOT) governor Prasarn Trairatvorakul has said domestic consumption and pent-up demand are returning to normal trends as a result of a stabilised political environment.

He also said that in terms of venture sentiment, the private sector should be encouraged by the government's investment plans, which should help the economy return to normal growth potential next year. (The Nation)

The Thailand Commerce Ministry plans to hold another round of bidding for 200,000 tonnes of rice on Oct 22, which could be the last before the main harvest season starts rolling early next month. (The Nation)

Daybreak│Malaysia

October 14, 2014

3

Malaysian Economic News

The Government has unveiled a list of more than 900 items that will be zero-rated and exempted from the Goods and Services Tax (GST) come April. The basket of goodies, announced by Prime Minister Datuk Seri Najib Tun Razak when tabling Budget 2015, was gazetted yesterday. Zero-rated goods are those that consumers need not pay GST for while exempt goods are free of the tax all along the value chain.

Food items are among those on the zero-rated list. They include sheep and goats, swine, poultry, cows, ducks and geese – both “live” and frozen – while seafood items include fish that is “live”, chilled, fillet, dried, salted, smoked and soaked in brine and crustaceans and molluscs.

Consumers need not worry about GST when they purchase food items such as fresh and salted eggs and a variety of vegetables including potatoes, tomatoes, onions, shallots, garlic, leeks, cabbages, cauliflowers, lettuce, carrots, turnips and other edible roots, asparagus, mushrooms, chillies and leguminous vegetables like peas and long beans. Coconuts and fruits such as durians, rambutans, langsat, bananas, dates, figs, citrus fruits, grapes, melons, apples, pears, apricots, cherries and strawberries are on the GST-free list.

Coffee and tea lovers can fully enjoy their cuppa as the beverages and an array of spices, rice, pastas and noodles have also been exempted. The public will also not be taxed when purchasing newspapers, journals, periodicals and dictionaries as well as when they buy receipt books, letter pads, diaries, note books and exercise books.

Among highlights in the GST-exempted list are education and healthcare services. These include private childcare, preschool, primary and secondary school education, as well as religious schools and tertiary education.

Exemptions are given to food and drinks supplied by canteen operator in government, government-aided or private preschool, primary and secondary schools and on course materials, food and accommodation, students’ transport, administrative services such as enrolment, issuance of student and library cards, or assessment of academic performance and examination services.

Under the healthcare services, GST will not be imposed on dental, nursing, midwifery, allied health, pharmacy and ambulance services provided by healthcare professionals, hospitalisation, screening, diagnoses, treatment to those suffering from any disease, injury or disability of mind or body.

Exemptions are also given for services for curing or alleviating any abnormal condition of the human body by the application of any apparatus, device or any other medical technology and mortuary services.

For the full list of items that are zero-rated and exempted from GST, log on to www.federalgazette. (The Star)

The government is looking at a new mechanism to maximise the impact of the Bantuan Raykat 1Malaysia (BR1M). It includes a more evenly spread distribution, such as a monthly handout instead of a lump sum payment to recipients, said Finance Ministry Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah. "This will discourage people from spending the cash handout on non-necessity items," he added. (Bernama)

Daybreak│Malaysia

October 14, 2014

4

The government needs to formulate a national advertising policy to enable local players to empower the country's creative industry. Bumiputera Advertising Agencies Association (Pribumi) President Datuk Rosle Jaamat said the policy would enable a balanced distribution of the economy that is fair and equitable, as 80% of the sector was dominated by foreign multi-national advertising agencies.

"A mechanism must be found to control the involvement of foreign agencies as this strategic industry shapes the character of the people in the country," he said. Through this policy, the government is able to introduce the advertising distribution quota and supervise based on the features of the Malaysian culture to safeguard the interest of the local industry. In 2013, the advertising industry contributed RM13bn to the country's gross domestic product. (Bernama)

Hospitality and real estate were among the sectors that caught the interest of a group of Singaporean investors who visited Kelantan. Datuk Zamri Ahmad, general manager, Investment Management Division at East Coast Economic Region Development Council (ECERDC), said the delegation made up of 19 investors gleaned information pertaining to tourist attractions and investment-oriented incentives. He said ECERDC offered the investors to invest in the Pasir Mas Halal Park and several industrial parks under the Kelantan State Economic Development Corporation. (Bernama)

The implementation of the Capital Gains Tax (CGT) will result in smaller revenue compared with that of the Goods and Services Tax (GST) and impact negatively on emerging economies like Malaysia. Finance Ministry Secretary-General Tan Sri Dr Irwan Serigar Abdullah said the CGT would also drive away foreign investors as it was a type of tax levied on capital gains. "We do not believe in the CGT because we are a developing country and want to be attractive to foreign direct investment.

"Furthermore, the GST have a wider coverage, while revenue derived from the CGT is very small and not be sustainable." Mohd Irwan said the form of CGT that Malaysia had right now was the real property gains tax, imposed to curb speculative activities in the property sector, which only resulted in RM600m revenue.

"Maybe, in future, when we reach a developed nation status, with stable income, we can consider the CGT. But not now," he added. On the full list of GST-exempted goods, he said it was gazetted yesterday and will be available for public reference on the Attorney General's Chambers' website (www.agc.gov.my). (Bernama)

All the 64 smallholder cooperatives in the country will receive soft loans totalling RM6.4m from the Malaysian Rubber Board (MRB) next month to enable them to buy rubber from 442,000 smallholders. Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas said the loans, which would be disbursed starting Nov 1, would enable the cooperatives to have a working capital to make the purchases.

He said the Cabinet had approved the loans to ease the difficulties faced by the cooperatives in making the purchases. Uggah also said that the MRB would allocate RM100m to implement a regulatory price mechanism at the farm level to protect smallholders from losses incurred, particularly when the world market price falls below a minimum fixed price. (Bernama)

Daybreak│Malaysia

October 14, 2014

5

The Federation of Malaysian Consumers Associations (Fomca) expects an increase in the number of house purchases by youths, following the property incentives outlined in the 2015 Budget. The 2015 Budget extended the 50% stamp duty exemption for first-time home buyers, increase the house limit purchase to RM500,000 from RM400,000 and allocated RM1.3bn to build 80,000 units of houses under the 1Malaysia People Housing Programme (Pr1ma).

Chief Executive Officer Datuk Paul Selva Raj said the announcement was in line with the current demand for affordable houses and higher take-up rate for the housing segment was expected, especially in urban areas. "Affordable houses will definitely help, not only for young buyers but also the ones with family, however, attention should also be given to educating the group on financial management and responsible expenditure," he said. (Bernama)

The Institute of Internal Auditors Malaysia (IIAM) hopes that the Securities Commission (SC) consider introducing a mechanism to help ensure consistency in auditing standards in Malaysia. Its president, Philip Satish Rao, said currently 57% of the 1,000 private listed companies in the country outsourced their internal auditing to parties that did not follow consistent standards. "Not all those outsourced to are members of the institute. "That is why we are worried as we do not know which standards they are applying and follow," he said. (Bernama)

Bank Negara Malaysia (BNM) is calling on the people in this country to learn about sound financial management in facing the rising cost of living. Its Assistant Governor Abu Hassan Alshari Yahaya said is this challenging climate of rising cost of living, Malaysians generally did not have enough savings for retirement and also had high household debts.

"Issues such as this should be given due attention to ensure consumers don't have excessive household debts which can be detrimental to themselves," he said. Abu Hassan said according to statistics from the Employees Provident Fund (EPF), as at the end of 2013, 69% of EPF contributors aged 54 had less than RM50,000 in savings. "The amount can only last five years if they spend RM800 a month. This is worrying as the cost of living keeps rising," he said.

Meanwhile, Mohd Yusof said throughout this month, there would be various programmes organised including financial training for pre-school children and for young executives, financial awareness talks at schools and higher learning institutions, finance workshops and investment education sessions.

This campaign is also aimed at addressing the issues of young workers spending beyond their means, facing serious indebtedness and lacking savings for the future. (Bernama)

There has been no increase in prices of 1Malaysia brand essential household items since Kedai Rakyat 1Malaysia (KR1M) was established in 2011, said Deputy Minister of Domestic Trade, Cooperatives and Consumerism, Datuk Seri Ahmad Bashah Md Hanipah.

According to him, so far KR1M features 378 choices of quality goods with prices up to 50% lower when compared with well-known brands. "Parties who wish to make comparisons with other brands of the same item must have similar specifications and use the same material, so that the comparison made is fair to all parties," he said. (Bernama)

Daybreak│Malaysia

October 14, 2014

6

A 2% or 485 out of the total 24,437 employers inspected nationwide till Aug 31 this year, did not comply with the Minimum Wages Order 2012. Human Resources Minister, Datuk Seri Richard Riot Jaem said the notice of compliance had been issued to the errant employers and legal action would be taken if necessary.

"Through its implementation (minimum wages), the government hopes it can be used as a base for calculating other payments, including social security contributions for the Employees Provident Fund, Social Security contributions and overtime pay calculations," he said.

On the revision of the minimum wages scheme, Ismail said it would be finalised by year's end after a thorough study. "The National Wages Consultative Council is looking at what needed to be presented to the government in the cabinet later. (Bernama)

A wide net has been cast on those barred from leaving the country by the Immigration Department. And it is not just tax offenders and those with criminal records who face a rude shock at border checkpoints or at the airport. The latest figures show some 85,000 National Higher Education Fund (PTPTN) beneficiaries who did not repay their loans on the department’s travel blacklist. They are among 1.14m people on the list which includes 701,266 Malaysians. The department has advised Malaysians to check their Immigration status prior to making holiday plans overseas to avoid problems. (The Star)

Chicken is cheaper by 70 sen this Deepavali than it was last year, but local mutton and imported lamb will cost RM1 more. According to the list of 14 items that are subjected to price control in conjunction with the festivities, live chicken is RM5.70 a kilo, standard chicken (RM7), and super chicken (RM7.80). The price of local mutton with bone has been set at RM36 a kilo while imported, boneless lamb is RM25.

At last year’s Deepavali, live chicken was RM6.40 a kilo, standard chicken RM7.70 and super chicken RM8.50. Local mutton with bone was RM35 a kilo while imported, boneless lamb was RM24. Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek said the 10-day price control scheme would be effective this Saturday.

Other items in the list are Grade A, B and C eggs, which costs 36 sen, 35 sen and 34 sen each respectively, tomatoes (RM4.50 a kilo), Indian shallots (RM5), imported potatoes from China (RM3) and Australian dhal (RM3.30). (The Star)

The RM660m allocation to enhance security in the eastern Sabah will boost the confidence of travellers to visit the state, said the Malaysian Association of Travel Agents (MATTA). In welcoming the allocation for Eastern Sabah Security Zone (Esszone) and Eastern Sabah Security Command (Esscom) announced in Budget 2015, its inbound vice-president Datuk K.L. Tan said safety and security were the main considerations for tourists visiting the East Coast of Sabah.

“With the Government’s full focus on the safety and security issues in Esszone, it is only a matter of time that full confidence is restored and the travel advisory lifted”, said Tan. MATTA president Hamzah Rahmat said the allocation of RM316m for programmes in conjunction with Malaysia-Year of Festivals 2015 should be done efficiently to enable travel agents to begin their promotions as soon as possible. (The Star)

Daybreak│Malaysia

October 14, 2014

7

Commuters travelling to east coast destinations via Putra Terminal in Chow Kit, Kuala Lumpur, will have to board buses from a new location beginning January. “Following talks between KL City Hall and the Land Public Transport Commission (SPAD), we are in agreement to move the bus operation to another place, latest by January,” Deputy Federal Territories Minister Datuk Dr J. Loga Bala Mohan said in reply to a question by Ahmad Baihaki Atiqullah (PAS-Kubang Kerian). Dr Loga Bala added that the new location has yet to be confirmed. Operations from within the terminal had stopped since Aug 8. Putra Terminal is the third main bus terminal after TBS (Terminal Bersepadu Selatan) and Pudu Sentral, which serves southbound and northbound destinations respectively. (The Star)

Political News

Youth and Sports Minister Khairy Jamaluddin has the potential to be the next deputy prime minister should PM Datuk Seri Najib Razak decide to step down before the 14th general election, said Datuk A Kadir Jasin. This could only happen if the PM's post was held by his cousin Datuk Seri Hishammuddin Hussein. "Like it or not, at this very juncture, Khairy is the only one who stands out among the ranks of Umno's young leaders. Everyone knows he sends his children to a national school when many of Umno's top men and even ministers discreetly send their children to elite private schools. He is part of the territorial army regiment." (Malaysian Insider)

PKR's newly-appointed secretary-general Rafizi Ramli will continue as the party's VP, said its de facto leader Datuk Seri Anwar Ibrahim, adding that there is no law in the party that prohibits a leader from holding two posts. He said the decision to appoint Rafizi was made by party president Datuk Seri Dr Wan Azizah Wan Ismail on Sunday. Rafizi replaces Datuk Saifuddin Nasution Ismail, who is now co-director of elections, together with VP Nurul Izzah Anwar who was also appointed to the post. Anwar said the move was also to allow PKR deputy president Mohamed Azmin Ali, who was previously the election director, to concentrate on his role as the menteri besar of Selangor. (Financial Daily)

Corporate News

Sunway Bhd took the No 1 spot in the Top Property Developers Award, a first for the developer. Sime Darby Property Bhd came in second, one rank up from the previous year while last year's winner SP Setia came in third place. Sunway also bagged the Best in Qualitative Attributes Award 2014 and The Edge-PAM Green Excellence Award 2014 for its Banjaran Hotsprings Retreat in Sunway City Ipoh. Other developers that made it into this year's Top 10 list were UEM Sunrise (No 4), Gamuda (No 5), Tropicana Corp (No 6), IGB Corp (No 7), Eastern & Oriental (No 8), Mah Sing Group (No 9) and IOI Properties (No 10). (Financial Daily)

The Arbitral Tribunal has ruled that Astro Malaysia Holdings Bhd’s unit Measat Broadcast Network Systems Sdn Bhd (MBNS) did not breach its agreement with AV Asia Sdn Bhd. In dismissing AV Asia’s counterclaim of AV Asia for RM300m, Astro said the tribunal ordered AV Asia to pay costs in the sum of US$1.05m to MBNS. Astro said MBNS had received the decision of the arbitral tribunal in relation to AV Asia’s allegation about the breaching of the agreement dated Aug 1, 2008 in the manufacture and supply of satellite dishes. (StarBiz)

Daybreak│Malaysia

October 14, 2014

8

Johor Land Bhd has awarded a RM197m contract to Malaysian Resources Corp Bhd (MRCB) to build a 30-storey JLand Tower in Johor Baru. The project is expected to be completed within 24 months in Nov-2016, MRCB said in a statement to Bursa Malaysia yesterday. (BT)

Petronas is acquiring Norway's Statoil ASA's Azerbaijan assets for US$2.25bn (RM7.34bn), It will acquire from Statoil the 15.5% participating interest in the Shah Deniz production sharing contract, 15.5% equity in the South Caucasus Pipeline Co. (SCPC), 15.5% share in the SCPC holding company and 12.4% in the Azerbaijan Gas Supply Co. (Malaysia Reserve)

Plantation company TSH Resources is optimistic that its Wakuba ramet will be able to produce between 32-35 tonnes tonnes per hectare of palm oil yield in the near future. Chairman Datuk Kelvin Tan said on the trial plot, the company was able to achieve 40 tonnes per ha using the Wakuba planting material but commercially, it could be slightly lower. TSH currently ranks the highest in terms of crude palm oil (CPO) yield. In 2013, it achieved a CPO yield of 5.3 tonnes per ha, boosted by its high FFB yield of 25.3 tonnes per ha and an oil extraction rate of 21%.

“With the new material we can achieve more than what we are getting now, but it’ll take another few years,” he said after TSH’s extraordinary general meeting on Monday. Shareholders approved the company’s proposal to undertake a one-for-two bonus issue. The exercise entails the issuance of 451.9 million new shares. The enlarged share capital is expected to encourage trading liquidity in TSH shares. (StarBiz)

Goldis Bhd's bid to take over IGB Corp Bhd has been deemed "not fair" and "not reasonable" by independent adviser RHB Investment Bank, resulting in IGB Corp chairman Tan Sri Abu Talib Othman and independent non-executive director Tan Kai Seng declaring their intention to reject the offer. Major shareholder Goldis launched a conditional voluntary offer of RM2.88 a share for IGB Corp on July 18, 2014.

"After careful examination of the terms of the offer as contained in the offer document and taking into consideration the evaluation and recommendation by RHB Investment Bank, the non-interested directors have concurred with the recommendation of RHB Investment Bank that the offer is not fair and not reasonable and recommends that holders to reject the offer," it said. (sun)

Melati Ehsan Holdings Bhd, a turnkey contractor and builder, is expected to win a RM60m contract for an ongoing road project in the East Coast Economic Region (ECER) this week. The project is the Central Spine Road, Package 3: Gua Musang (Kelantan) to Kampung Relong (Pahang). The Public Works Department (PWD) had awarded the road project to Melati Ehsan in 2011 and it was part of a government master plan to promote ECER and improve accessibility.

Under the original plan, Melati Ehsan was expected to construct a 12km two-lane carriageway at a contract sum of RM148.6m. However, the following year, PWD decided to expand the road to a four-lane carriageway, thereby increasing the contract value by RM28m. BT understands that PWD now wants to extend the road by 3.8km in a bid to alleviate traffic between Gua Musang and Kampung Relong. (StarBiz)

Daybreak│Malaysia

October 14, 2014

9

Malaysia’s first electric vehicle (EV) is likely to be unveiled and mass-produced by 2017, either by Proton Holdings Bhd or another local player, with an “incredible” price tag of less than RM100,000. Malaysia Automotive Institute (MAI) CEO Madani Sahari said the “low” price is possible because the whole project, including infrastructure building and lithium-ion batteries production, will be local-centric. He said Proton was now developing its EV and would produce a prototype by end of next year. “Proton is expected to introduce its first EV by end of 2016 or in early 2017 as it usually takes about a year to test the prototype before the car enters the production phase,” Madani said. (BT)

Malaysia plans to build rubberised roads from 2015 in a bid to boost domestic consumption and shore up battered prices of rubber, after a price-floor plan by major producing nations proved tough to implement among farmers desperate for cash. Feeble demand in an amply supplied market has already pushed down rubber prices to below production costs and sent benchmark futures to a five-year low, forcing No 2 producer Indonesia to urge suppliers to not sell at less than US$1.50 per kilogram.

While third-biggest rubber grower Vietnam became the latest, after other major players Thailand and Malaysia, to support the minimum-price plan, scepticism remains on how effective it would be since similar acts of co-ordination have failed before. Members of the Association of Natural Rubber Producing Countries (ANRPC), which together account for more than 90% of global natural rubber output, met in Kuala Lumpur on Monday but they did not appear any closer to coming up with a more drastic measure than the $1.50/kg minimum price. (StarBiz)

Daybreak│Malaysia

October 14, 2014

10

BMSB: Changes in shareholdings

Type of No of Ave Price

13-Oct-14 Date transaction securities Company (RM)

EPF 8/10 Disposed 2,300,000 KNM GROUP

EPF 8/10 Disposed 1,858,800 DIGI.COM

EPF 7/10-8/10 Disposed 1,649,300 KOSSAN RUBBER INDUSTRIES

EPF 8/10 Disposed 1,237,800 BERJAYA AUTO

EPF 8/10 Disposed 922,800 YINSON HOLDINGS

EPF 8/10 Disposed 904,500 IOI PROPERTIES GROUP

EPF 8/10 Disposed 859,800 IHH HEALTHCARE

EPF 8/10 Disposed 732,500 AMMB HOLDINGS

EPF 8/10 Disposed 720,300 MALAYAN BANKING

EPF 8/10 Disposed 695,600 IGB CORPORATION

EPF 8/10 Disposed 687,900 YTL POWER INTERNATIONAL

EPF 8/10 Disposed 672,500 HONG LEONG BANK

EPF 7/10-8/10 Disposed 331,400 MISC

EPF 8/10 Disposed 300,000 EVERSENDAI CORPORATION

EPF 8/10 Disposed 300,000 PETRONAS GAS

EPF 8/10 Disposed 177,000 AEON CO. (M)

EPF 8/10 Disposed 88,400 AFG

Skim Amanah Saham Bumiputera 7/10-8/10 Disposed 350,000 KLCC REIT

Skim Amanah Saham Bumiputera 7/10-8/10 Disposed 350,000 KLCC PROPERTY

MM Asset Management Holding LLC 8/10 Disposed 90,000 GENTING

T. Rowe Price Associates, Inc 7/10 Disposed 54,500 ASTRO MALAYSIA HOLDINGS

EPF 8/10 Acquired 2,373,100 DIALOG GROUP

EPF 8/10 Acquired 2,307,986 TELEKOM MALAYSIA

EPF 8/10 Acquired 2,247,300 GAMUDA

EPF 8/10 Acquired 1,888,900 MAH SING GROUP

EPF 8/10 Acquired 1,856,100 PUBLIC BANK

EPF 8/10 Acquired 1,369,600 PETRONAS CHEMICALS

EPF 8/10 Acquired 1,133,400 IOI CORPORATION

EPF 8/10 Acquired 1,102,700 EASTERN & ORIENTAL

EPF 8/10 Acquired 1,000,000 CAPITAMALLS MALAYSIA TRUST

EPF 8/10 Acquired 931,700 CAHYA MATA SARAWAK

EPF 8/10 Acquired 600,000 SP SETIA

EPF 8/10 Acquired 450,000 BUMI ARMADA

EPF 8/10 Acquired 396,700 SAPURAKENCANA PETROLEUM

EPF 7/10-8/10 Acquired 395,500 KPJ HEALTHCARE

EPF 8/10 Acquired 364,800 PRESTARIANG

EPF 8/10 Acquired 250,100 POS MALAYSIA

EPF 8/10 Acquired 250,000 IJM CORPORATION

EPF 8/10 Acquired 215,400 FABER GROUP

EPF 8/10 Acquired 184,700 MAXIS

EPF 8/10 Acquired 178,200 BIMB HOLDINGS

EPF 8/10 Acquired 133,900 TAN CHONG MOTOR

EPF 7/10-8/10 Acquired 50,200 UMW HOLDINGS

EPF 8/10 Acquired 35,500 TIME DOTCOM

EPF 8/10 Acquired 34,100 IJM PLANTATIONS

Lembaga Tabung Angkatan Tentera 2/10-3/10 Acquired 423,500 BOUSTEAD HOLDINGS

QL Resources Berhad 8/10 Acquired 304,200 LAY HONG 3.50

GKG Investment Holdings Pte Ltd 10/10 Acquired 51,700 EASTERN & ORIENTAL

Albizia ASEAN Opportunities Fund 10/10 Acquired 280,000 BONIA CORPORATION

Aberdeen Asset Management PLC 8/10-9/10 Acquired 1,000,000 AEON CO. (M)

Aberdeen Asset Management PLC 8/10-9/10 Acquired 751,700 POS MALAYSIA

SUNWAY BERHAD 13/10 Shares Buy Back 100,000 SUNWAY BERHAD 3.28

DAIBOCHI PLASTIC 13/10 Shares Buy Back 6,000 DAIBOCHI PLASTIC 4.18

SOURCES: BMSB

Daybreak│Malaysia

October 14, 2014

11

BMSB: ESOS & others

14-Oct-14 No Of New Shares Date of Listing Nature of transaction

SUNWAY BERHAD 601,500 14-Oct-14 Exercise of ESOS

SUNWAY BERHAD 869,961 14-Oct-14 Exercise of Warrants-16 SOURCES: BMSB

BMSB: Off-market transactions

13-Oct-14 Vol

SCIB 4,036,100

TIGER 2,500,000

HOVID-WB 2,000,000

MEDAINC-WB 2,000,000

KUB 1,200,000

SANICHI 1,000,000

HOVID 1,000,000

MEDAINC-WC 1,000,000

KOBAY 591,800

NIHSIN 500,000

Notes:CN-Crossing deal on board lots

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

SOURCES: BMSB

BMSB: Dividends

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

SBC CORP 1st & final dividend - single tier 4.75 5-Sep-14 14-Oct-14 16-Oct-14 3-Nov-14

YTL CORPORATION 3rd interim dividend - single tier 9.50 28-Aug-14 29-Oct-14 31-Oct-14 14-Nov-14

YTL POWER Interim dividend - single tier 10.00 28-Aug-14 29-Oct-14 31-Oct-14 14-Nov-14

HONG LEONG BANK Final dividend - single tier 26.00 2-Oct-14 29-Oct-14 31-Oct-14 18-Nov-14THONG GUAN

INDUSTRIESInterim dividend - single tier 3.00 22-Aug-14 5-Nov-14 7-Nov-14 18-Nov-14

ASIA FILE CORP Final dividend - single tier 13.50 4-Sep-14 26-Nov-14 28-Nov-14 26-Dec-14

SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

14-Oct-14 Ann Date Proposed

ECO WORLD 25-Apr-14 1 Rights @ 2, 4 Free Warrants @ 5, Private Placement

SBC CORP 27-May-14 Bonus issue 1:2

ASIA FILE CORP 6-Aug-14 Bonus issue 3:5

GHL SYSTEMS 20-Aug-14 Bonus issue 1:2

EASTERN & ORIENTAL 5-Sep-14 Bonus issue 1:10, Free Warrants 1:5

BUMI ARMADA 12-Sep-14 1 Rights : 2 shares @ RM1.35

BENALEC HOLDINGS  12-Sep-14 > RM200m of 7-year Redeemable Convertible Secured Bonds

TH HEAVY ENGINEERING 24-Sep-14 Private placement of up to 10% of the issued shares of THHE

TH HEAVY ENGINEERING 3-Oct-14 Rights issue with bonus issue, 1 bonus issue : 5 Rights shares SOURCES: BMSB

Daybreak│Malaysia

October 14, 2014

12

Corporate Actions

October 2014

SUN MON TUE WED THU FRI SAT

1 2 3 4

5 6 7 8 9 10 11

Hari Raya Qurban Replacement for Hari Raya Qurban

External Trade External Reserves (month-end data)

2015 Budget Industrial Production

12 13 14 15 16 17 18

CPI

19 20 21 22 23 24 25

External Reserves (mid-month data)

Deepavali Awal Muharram

26 27 28 29 30 31

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

Daybreak│Malaysia

October 14, 2014

13

Corporate Actions

November 2014

SUN MON TUE WED THU FRI SAT

30 1

2 3 4 5 6 7 8

BNM Interest Rate External Trade, External Reserves (month-end data)

9 10 11 12 13 14 15

Industrial Production GDP, BoP Current Account Balance

16 17 18 19 20 21 22

CPI Foreign Reserves (mid-month data)

23 24 25 26 27 28 29

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

Daybreak│Malaysia

October 14, 2014

14

DISCLAIMER #05

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.

By accepting this report, the recipient hereof represents and warrants that he is entitled to receive such report in accordance with the restrictions set forth below and agrees to be bound by the limitations contained herein (including the “Restrictions on Distributions” set out below). Any failure to comply with these limitations may constitute a violation of law. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this report may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB.

Unless otherwise specified, this report is based upon sources which CIMB considers to be reasonable. Such sources will, unless otherwise specified, for market data, be market data and prices available from the main stock exchange or market where the relevant security is listed, or, where appropriate, any other market. Information on the accounts and business of company(ies) will generally be based on published statements of the company(ies), information disseminated by regulatory information services, other publicly available information and information resulting from our research.

Whilst every effort is made to ensure that statements of facts made in this report are accurate, all estimates, projections, forecasts, expressions of opinion and other subjective judgments contained in this report are based on assumptions considered to be reasonable as of the date of the document in which they are contained and must not be construed as a representation that the matters referred to therein will occur. Past performance is not a reliable indicator of future performance. The value of investments may go down as well as up and those investing may, depending on the investments in question, lose more than the initial investment. No report shall constitute an offer or an invitation by or on behalf of CIMB or its affiliates to any person to buy or sell any investments.

CIMB, its affiliates and related companies, their directors, associates, connected parties and/or employees may own or have positions in securities of the company(ies) covered in this research report or any securities related thereto and may from time to time add to or dispose of, or may be materially interested in, any such securities. Further, CIMB, its affiliates and its related companies do and seek to do business with the company(ies) covered in this research report and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies), may sell them to or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory, underwriting or placement services for or relating to such company(ies) as well as solicit such investment, advisory or other services from any entity mentioned in this report.

CIMB or its affiliates may enter into an agreement with the company(ies) covered in this report relating to the production of research reports. CIMB may disclose the contents of this report to the company(ies) covered by it and may have amended the contents of this report following such disclosure.

The analyst responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views and opinions about any and all of the issuers or securities analysed in this report and were prepared independently and autonomously. No part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations(s) or view(s) in this report. CIMB prohibits the analyst(s) who prepared this research report from receiving any compensation, incentive or bonus based on specific investment banking transactions or for providing a specific recommendation for, or view of, a particular company. Information barriers and other arrangements may be established where necessary to prevent conflicts of interests arising. However, the analyst(s) may receive compensation that is based on his/their coverage of company(ies) in the performance of his/their duties or the performance of his/their recommendations and the research personnel involved in the preparation of this report may also participate in the solicitation of the businesses as described above. In reviewing this research report, an investor should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest. Additional information is, subject to the duties of confidentiality, available on request.

Reports relating to a specific geographical area are produced by the corresponding CIMB entity as listed in the table below. The term “CIMB” shall denote, where appropriate, the relevant entity distributing or disseminating the report in the particular jurisdiction referenced below, or, in every other case, CIMB Group Holdings Berhad ("CIMBGH") and its affiliates, subsidiaries and related companies.

Country CIMB Entity Regulated by

Australia CIMB Securities (Australia) Limited Australian Securities & Investments Commission

Hong Kong CIMB Securities Limited Securities and Futures Commission Hong Kong

Indonesia PT CIMB Securities Indonesia Financial Services Authority of Indonesia

India CIMB Securities (India) Private Limited Securities and Exchange Board of India (SEBI)

Malaysia CIMB Investment Bank Berhad Securities Commission Malaysia

Singapore CIMB Research Pte. Ltd. Monetary Authority of Singapore

South Korea CIMB Securities Limited, Korea Branch Financial Services Commission and Financial Supervisory Service

Taiwan CIMB Securities Limited, Taiwan Branch Financial Supervisory Commission

Thailand CIMB Securities (Thailand) Co. Ltd. Securities and Exchange Commission Thailand

Information in this report is a summary derived from CIMB individual research reports. As such, readers are directed to the CIMB individual research report or note to review the individual Research Analyst's full analysis of the subject company. Important disclosures relating to the companies that are the subject of research reports published by CIMB and the proprietary positions by CIMB and shareholdings of its Research Analysts’ who prepared the report in the securities of the company(s) are available in the individual research report.

The information contained in this research report is prepared from data believed to be correct and reliable at the time of issue of this report. CIMB may or may not issue regular reports on the subject matter of this report at any frequency and may cease to do so or change the periodicity of reports at any time. CIMB is under no obligation to update this report in the event of a material change to the information contained in this report.

Daybreak│Malaysia

October 14, 2014

15

This report does not purport to contain all the information that a prospective investor may require. CIMB or any of its affiliates does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Neither CIMB nor any of its affiliates nor its related persons shall be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.

This report is general in nature and has been prepared for information purposes only. It is intended for circulation amongst CIMB and its affiliates’ clients generally and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. The information and opinions in this report are not and should not be construed or considered as an offer, recommendation or solicitation to buy or sell the subject securities, related investments or other financial instruments thereof.

Investors are advised to make their own independent evaluation of the information contained in this research report, consider their own individual investment objectives, financial situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects before participating in any transaction in respect of the securities of company(ies) covered in this research report. The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of investors.

Australia: Despite anything in this report to the contrary, this research is provided in Australia by CIMB Securities (Australia) Limited (“CSAL”) (ABN 84 002 768 701, AFS Licence number 240 530). CSAL is a Market Participant of ASX Ltd, a Clearing Participant of ASX Clear Pty Ltd, a Settlement Participant of ASX Settlement Pty Ltd, and, a participant of Chi X Australia Pty Ltd. This research is only available in Australia to persons who are “wholesale clients” (within the meaning of the Corporations Act 2001 (Cth)) and is supplied solely for the use of such wholesale clients and shall not be distributed or passed on to any other person. This research has been prepared without taking into account the objectives, financial situation or needs of the individual recipient.

France: Only qualified investors within the meaning of French law shall have access to this report. This report shall not be considered as an offer to subscribe to, or used in connection with, any offer for subscription or sale or marketing or direct or indirect distribution of financial instruments and it is not intended as a solicitation for the purchase of any financial instrument.

Hong Kong: This report is issued and distributed in Hong Kong by CIMB Securities Limited (“CHK”) which is licensed in Hong Kong by the Securities and Futures Commission for Type 1 (dealing in securities), Type 4 (advising on securities) and Type 6 (advising on corporate finance) activities. Any investors wishing to purchase or otherwise deal in the securities covered in this report should contact the Head of Sales at CIMB Securities Limited. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CHK has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CHK. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CHK. Unless permitted to do so by the securities laws of Hong Kong, no person may issue or have in its possession for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to the securities covered in this report, which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong).

India: This report is issued and distributed in India by CIMB Securities (India) Private Limited (“CIMB India”) which is registered with SEBI as a stock-broker under the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 and in accordance with the provisions of Regulation 4 (g) of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, CIMB India is not required to seek registration with SEBI as an Investment Adviser.

The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of CIMB India and they have received compensation based upon various factors, including quality, accuracy and value of research, firm profitability or revenues, client feedback and competitive factors. Research analysts', strategists' or economists' compensation is not linked to investment banking or capital markets transactions performed or proposed to be performed by CIMB India or its affiliates.

Indonesia: This report is issued and distributed by PT CIMB Securities Indonesia (“CIMBI”). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBI has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CIMBI. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBI. Neither this report nor any copy hereof may be distributed in Indonesia or to any Indonesian citizens wherever they are domiciled or to Indonesia residents except in compliance with applicable Indonesian capital market laws and regulations.

Malaysia: This report is issued and distributed by CIMB Investment Bank Berhad (“CIMB”). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMB has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CIMB. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB.

New Zealand: In New Zealand, this report is for distribution only to persons whose principal business is the investment of money or who, in the

Daybreak│Malaysia

October 14, 2014

16

course of, and for the purposes of their business, habitually invest money pursuant to Section 3(2)(a)(ii) of the Securities Act 1978.

Singapore: This report is issued and distributed by CIMB Research Pte Ltd (“CIMBR”). Recipients of this report are to contact CIMBR in Singapore in respect of any matters arising from, or in connection with, this report. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBR has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only. If the recipient of this research report is not an accredited investor, expert investor or institutional investor, CIMBR accepts legal responsibility for the contents of the report without any disclaimer limiting or otherwise curtailing such legal responsibility. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBR..

As of October 13, 2014, CIMBR does not have a proprietary position in the recommended securities in this report.

South Korea: This report is issued and distributed in South Korea by CIMB Securities Limited, Korea Branch ("CIMB Korea") which is licensed as a cash equity broker, and regulated by the Financial Services Commission and Financial Supervisory Service of Korea.

The views and opinions in this research report are our own as of the date hereof and are subject to change, and this report shall not be considered as an offer to subscribe to, or used in connection with, any offer for subscription or sale or marketing or direct or indirect distribution of financial investment instruments and it is not intended as a solicitation for the purchase of any financial investment instrument.

This publication is strictly confidential and is for private circulation only, and no part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB Korea.

Sweden: This report contains only marketing information and has not been approved by the Swedish Financial Supervisory Authority. The distribution of this report is not an offer to sell to any person in Sweden or a solicitation to any person in Sweden to buy any instruments described herein and may not be forwarded to the public in Sweden.

Taiwan: This research report is not an offer or marketing of foreign securities in Taiwan. The securities as referred to in this research report have not been and will not be registered with the Financial Supervisory Commission of the Republic of China pursuant to relevant securities laws and regulations and may not be offered or sold within the Republic of China through a public offering or in circumstances which constitutes an offer or a placement within the meaning of the Securities and Exchange Law of the Republic of China that requires a registration or approval of the Financial Supervisory Commission of the Republic of China.

Thailand: This report is issued and distributed by CIMB Securities (Thailand) Company Limited (CIMBS). The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBS has no obligation to update its opinion or the information in this research report.

This publication is strictly confidential and is for private circulation only to clients of CIMBS. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBS.

Corporate Governance Report:

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

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

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

Description: Excellent Very Good Good N/A

United Arab Emirates: The distributor of this report has not been approved or licensed by the UAE Central Bank or any other relevant licensing authorities or governmental agencies in the United Arab Emirates. This report is strictly private and confidential and has not been reviewed by, deposited or registered with UAE Central Bank or any other licensing authority or governmental agencies in the United Arab Emirates. This report is being issued outside the United Arab Emirates to a limited number of institutional investors and must not be provided to any person other than the original recipient and may not be reproduced or used for any other purpose. Further, the information contained in this report is not intended to lead to the sale of investments under any subscription agreement or the conclusion of any other contract of whatsoever nature within the territory of the United Arab Emirates.

United Kingdom and Europe: In the United Kingdom and European Economic Area, this report is being disseminated by CIMB Securities (UK) Limited (“CIMB UK”). CIMB UK is authorised and regulated by the Financial Conduct Authority and its registered office is at 27 Knightsbridge, London, SW1X 7YB. This report is for distribution only to, and is solely directed at, selected persons on the basis that those persons: (a) are persons that are eligible counterparties and professional clients of CIMB UK; (b) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”); (c) are persons falling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Order; (d) are outside the United Kingdom; or (e) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the

Daybreak│Malaysia

October 14, 2014

17

Financial Services and Markets Act 2000) in connection with any investments to which this report relates may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This report is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this report relates is available only to relevant persons and will be engaged in only with relevant persons.

Only where this report is labelled as non-independent, it does not provide an impartial or objective assessment of the subject matter and does not constitute independent "investment research" under the applicable rules of the Financial Conduct Authority in the UK. Consequently, any such non-independent report will not have been prepared in accordance with legal requirements designed to promote the independence of investment research and will not subject to any prohibition on dealing ahead of the dissemination of investment research.

United States: This research report is distributed in the United States of America by CIMB Securities (USA) Inc, a U.S.-registered broker-dealer and a related company of CIMB Research Pte Ltd, CIMB Investment Bank Berhad, PT CIMB Securities Indonesia, CIMB Securities (Thailand) Co. Ltd, CIMB Securities Limited, CIMB Securities (Australia) Limited, CIMB Securities (India) Private Limited, and is distributed solely to persons who qualify as "U.S. Institutional Investors" as defined in Rule 15a-6 under the Securities and Exchange Act of 1934. This communication is only for Institutional Investors whose ordinary business activities involve investing in shares, bonds and associated securities and/or derivative securities and who have professional experience in such investments. Any person who is not a U.S. Institutional Investor or Major Institutional Investor must not rely on this communication. The delivery of this research report to any person in the United States of America is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein. CIMB Securities (USA) Inc, is a FINRA/SIPC member and takes responsibility for the content of this report. For further information or to place an order in any of the above-mentioned securities please contact a registered representative of CIMB Securities (USA) Inc.

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

CIMB Recommendation Framework

Stock Ratings Definition

ADD The stock’s total return is expected to exceed 10% over the next 12 months.

HOLD The stock’s total return is expected to be between 0% and positive 10% over the next 12 months.

REDUCE The stock’s total return is expected to fall below 0% or more over the next 12 months.

The total expected return of a stock is defined as the sum of the: (i) percentage difference between the target price and the current price and (ii) the forward net dividend yields of the stock. Stock price targets have an investment horizon of 12 months.

*Prior to December 2013 CIMB recommendation framework for stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand, Jakarta Stock Exchange, Australian Securities Exchange, Taiwan Stock Exchange and National Stock Exchange of India/Bombay Stock Exchange were based on a stock’s total return relative to the relevant benchmarks total return. Outperform: expected to exceed by 5% or more over the next 12 months. Neutral: expected to be within +/-5% over the next 12 months. Underperform: expected to be below by 5% or more over the next 12 months. Trading Buy: expected to exceed by 3% or more over the next 3 months. Trading Sell: expected to be below by 3% or more over the next 3 months. For stocks listed on Korea Exchange, Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Outperform: Expected positive total returns of 10% or more over the next 12 months. Neutral: Expected total returns of between -10% and +10% over the next 12 months. Underperform: Expected negative total returns of 10% or more over the next 12 months. Trading Buy: Expected positive total returns of 10% or more over the next 3 months. Trading Sell: Expected negative total returns of 10% or more over the next 3 months.