REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 4 September 2013

▌What’s on the Table…

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Strategy Flash Note - Making macro headway We view positively the government's decision yesterday to raise petrol prices and proceed with MRT 2 & 3 while deferring projects with high import content. This should help assuage concerns over the budget deficit and narrowing current-account surplus. The property and construction sectors should be big winners while the likelihood of tariff adjustments for Tenaga has increased. While many other sectors could be losers, the net impact could be renewed confidence in Malaysia's economic outlook. We remain Positive on Malaysia and keep our end-2014 KLCI target of 1,920 pts (15.9x P/E or 10% premium to its 3-year MA). Market catalysts include a stabilisation of regional markets and additional responsible fiscal policies.

Petronas Dagangan - No reduced mileage from pump price hikes

The automatic pricing mechanism (APM) ensures that both petroleum retailers and consumers are shielded from the volatility of the oil price. Therefore, we expect just a short-term volume dent for PetDag following the increase of RON95 and diesel prices at the pumps today. Our target price rises as we now value the stock at 22.3x CY14 P/E, a 40% premium over our revised target market P/E of 15.9x (15.6x previously) but still within the historical P/E range for oil & gas big-caps. Swift expansion is a re-rating catalyst that supports our non-consensus Outperform call.

Supermax Corp - Awaiting better growth

This morning’s plant visit has given us reason to be more confident of Supermax’s stronger sales and higher margins when its new nitrile production lines are commissioned. The on-going efforts to build its own distribution arm will also help to ease competitive pressure. Supermax remains an Outperform, with strong demand and widening margins as catalysts. We maintain our FY13-14 net profit forecasts and increase our FY15 number by 8.4% to factor in the added capacity from its new plant in Glove City. We continue to peg Supermax at 13x CY14 P/E (30% discount to Hartalega’s P/E).

KLCC Property Holdings - More to come

▌News of the Day…

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• FGVH takeover offer for Pontian United Plantations has become unconditional

• EPF posted RM9.16bn or a 20% increase in investment income in 2QFY13

• Malaysia will launch a green scheme for palm oil firms by 2014

• RHB Bank will be appointing Khairussaleh Ramli as the new deputy CEO?

• Solid Automotive Bhd’s IPO has been oversubscribed by 9.8x

• The government has yet to decide which projects would be postponed

• US ISM manufacturing index rose to 55.7 in Aug from the 55.4 surge in Jul

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,550

1,600

1,650

1,700

1,750

1,800

1,850

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

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FBMKLCI

1724.21 6.65pts 0.39%SEP Futures OCT Futures

1698 - (-0.56% ) 1697 - (0.98% )———————————————————————————

Gainers Losers Unchanged437 273 299

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Turnover1355.92m shares / RM1508.279m

3m avg volume traded 1675.18m shares

3m avg value traded RM2130.09m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,724 3,055 4,164 1,315 22,395 ————————————————————————————————

Market Indices

Close % chg YTD % chg

FBMKLCI 1,724.21 0.4 2.1

FBM100 11,718.08 0.5 3.7

FBMSC 14,400.69 0.8 25.4

FBMMES 4,907.17 0.4 16.4

Dow Jones 14,833.96 0.2 13.2

NASDAQ 3,612.61 0.6 19.6

FSSTI 3,054.78 (0.0) (3.5)

FTSE-100 6,468.41 (0.6) 9.7

Hang Seng 22,394.58 1.0 (1.2)

JCI 4,164.01 1.5 (3.5)

KOSPI 1,933.74 0.5 (3.2)

Nikkei 225 13,978.44 3.0 34.5

PCOMP 6,083.91 0.4 4.7

SET 1,315.41 (0.6) (5.5)

Shanghai 2,123.11 1.2 (6.4)

Taiwan 8,088.37 0.6 5.1————————————————————————————————

Top Actives

Close % chg Vol. (m)

PELIKAN 0.500 40.8 75.1MALAYSIAN AIRLINE 0.325 3.2 64.2

CHINA STATIONERY 0.235 11.9 63.7

PESONA METRO 0.450 0.0 43.0

FLONIC HI-TEC 0.120 9.1 39.7

MQ TECHNOLOGY 0.115 (20.7) 28.8

MEDIA SHOPPE 0.095 0.0 22.3

COMPUGATES 0.055 (8.3) 21.0————————————————————————————————

Economic Statistics

Close % chg

US$/Euro 1.3170 (0.01)RM/US$ (Spot) 3.2863 (0.05)

RM/US$ (12-mth NDF) 3.3735 0.77

OPR (% ) 3.00 0.00

BLR (% , CIMB Bank) 6.60 0.00

GOLD ( US$/oz) 1,412 (0.05)

WTI crude oil US spot (US$/barrel) 108.54 0.83

CPO spot price (RM/tonne) 2,414 (0.37) ————————————————————————————————————————

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

Daybreak Malaysia

September 4, 2013

2

Global Economic News…

US construction spending rose 0.6% mom in Jul from a revised no change in Jun, double the consensus estimate of 0.3%. On a yoy basis, spending gained 5.2% from a revised 4.7% in Jun. (Bloomberg)

The US Markit manufacturing PMI slipped to 53.1 in Aug from 53.9 in the mid-month flash reading and 53.7 in Jul. This underperforms consensus of 53.9. (Bloomberg)

The US ISM manufacturing index rose to 55.7 in Aug from the 55.4 surge in Jul, beating consensus of 53.8. (Bloomberg)

Eurozone producer prices rose a seasonally adjusted 0.3% mom in Jul (no change in Jun), exceeding consensus of 0.1%. This marks the first increase in five months. (Bloomberg)

Japan’s monetary base rose for the sixth straight month in Aug to reach a record high of ¥176.99tr, denoting a yoy growth of 42.0% (38.0% in Jul), the sharpest growth since Mar 2002, when it surged 45.3%. (Bloomberg)

Japan’s labour cash earnings increased 0.4% yoy in Jul, the second straight month of gains, following a 0.6% rise in June and a 0.1% decrease in May. (RTT News)

South Korea’s foreign reserves rose to US$331.09bn in Aug from US$329.71bn in the previous month. (Bloomberg)

Australia's central bank left interest rates on hold at a historic low of 2.5%, underscoring fears of a slowdown as the country's decade-long mining boom slows down. (AFP)

The PMI for Singapore’s manufacturing economy fell unexpectedly, dropping 1.3 pts to 50.5 in Aug. However the electronics PMI rose a significant 1 pt to a 3-month high of 51.3, on stronger orders. (CNA)

Vietnam’s manufacturing PMI rose to 49.4 in Aug from 48.5 in Jul. (Bloomberg)

Malaysian Economic News…

The government's move in reducing the RON95 petrol and diesel subsidy is on the right track in improving its fiscal position, said CIMB Group Managing Director and Chief Executive Officer Datuk Seri Nazir Razak."I think it is right, we need to reduce subsidies and widen our tax base, but we must do it in a way that does not affect the general public." He said following the negative outlook on the country by Fitch Ratings recently, there was a very real outflow of money from the region, and to mitigate this pressure, it was imperative to take control of both government fiscal deficit and a potential trade deficit. (Bernama)

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September 4, 2013

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The Domestic Trade, Cooperatives and Consumerism Ministry (MDTCC) warned traders not to hike the price of good indiscriminately following the 20 sen increase in the price of RON95 and diesel. Its minister, Datuk Hasan Malek, said the ministry would mobilise its enforcement officers nationwide to conduct checks at business premises to ensure traders did not increase the price of their goods. The ministry, he said, would be firm against traders who indiscriminately raised prices of goods under the Price Control and Anti-Profiteering Act 2011. (Bernama)

The Human Resources Ministry is prepared to discuss with employers facing labour shortage after the government's tough action through "Ops Bersepadu 6P", an operation to weed out foreign illegals. Its deputy minister, Datuk Ismail Mutallib said the ministry believed that certain sectors were affected by the 6P operation although it had not received any official report yet on the matter.

"If there are problems, the employers can come and discuss with the ministry. Ultimately, it (operation) will benefit employers by hiring foreign workers legally. In the integrated 6P operation launched since last Sunday, more than 2,000 foreign illegals have been detained for committing various immigration offences. (Bernama)

The RM3.3bn savings from the reduction of fuel subsidies will be ploughed back into the rakyat's interest, such as the 1Malaysia People's Aid and infrastructure projects, said Minister in the Prime Minister's Department, Datuk Seri Abdul Wahid Omar. He said the move is a holistic approach to manage fiscal deficit and distribute subsidies to targeted groups. "Instead of subsidising those who don't need it and foreigners, we provide directly to those who deserve the subsidies," he said. (Bernama)

The Ministry of International Trade and Industry (MITI) wants to increase the country's export value of halal products, excluding palm oil, to reach RM100bn annually. Its Deputy Minister Datuk Hamim Samuri said currently the export value of halal products including food and pharmaceutical products amounted to RM38bn a year. "We need many more halal products for exports as the global halal market is huge and its value reached RM7.3tr last year.

According to Hamim, the biggest markets for Malaysian halal products at present were countries in the Middle East, the United States and the European Union. He said China, which has a Muslim population of 120m, also represented a huge market for halal products manufactured by local companies. (Bernama)

The government is mulling the reintroduction of RON92 petrol to give motorists more options in getting affordable fuel. RON92 was phased out in 2009 in favour of RON95, which has a high research octane number (RON). Domestic Trade and Consumer Affairs Minsiter Datuk Hasan Malek said while no decision has been made, studies were under way to see whether there was a need for cheaper petrol in the wake of rising fuel prices. (NST)

Malaysia emerged the 24th most competitive nation among 148 countries, ranked by the World Economic Forum in its recently released Global Competitiveness Report. Last year, Malaysia was ranked 25th out of 144 countries. The nation remains the second most competitive Asean country and has improved its position to seventh from 10th among 25 Asia-Pacific countries. The report noted that Malaysia held considerable advantage and was ranked 10th in its efficiency and competitiveness when it came to the marketing of its goods

Daybreak Malaysia

September 4, 2013

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and services, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed. (NST)

The higher operational costs resulting from the 20 sen increase in the price of RON95 petrol and diesel is likely to be pushed to customers, according to major players in the transport industry.

The Pan Malaysian Bus Operators Association, which has 130 members nationwide, expects fares for stage and express coaches to rise between 5% and 30% “in the near future.” Association president Datuk Ashfar Ali said that “the hike in diesel price has resulted in an immediate rise of 5% in operatioinal costs and this will have an impact on stage and express bus operators.”

The Selangor and Kuala Lumpur Lorry Operators Association said that diesel costs made up 30% to 40% of the entire expenditure of its members. The fuel hike would raise their oeperation costs by about 5% to 8%, said association secretary general Alvin Choong. (The Star)

The Employees Provident Fund said it posted RM9.16bn in investment income for the second quarter ended Jun 30, up 19.7% from the corresponding quarter in 2012. In a statement yesterday, it said equities contributed the largest share of its investment income, as it generated RM5.6bn in 2Q13 (RM3.84bn in 2Q12). EPF said as at end-Jun 2013, its investment assets increased by RM59.30bn or 12% to RM554.14bn from RM494.84bn in 2Q12. EPF's total exposure in global investment assets constituted 18.97% of its total investment assets based on book value. In 2Q13, EPF injected US$1.2bn into external fund managers for global equity mandates while RM1bn and RM850m were outsourced to domestic fixed income and equity mandates, respectively. (The Edge Financial Daily)

Political News…

MCA delegates from the north have expressed support for party chief Datuk Seri Dr Chua Soi Lek's quest for another term in the party elections to be held in Dec. They do not think that deputy president Datuk Seri Liow Tiong Lai can stand up to Umno's political hegemony or is strong enough to handle Umno's demands. The delegates describe Liow as a "yes man", and they do not want such a weak leader in charge of the party. (Malay Mail)

Putrajaya has been reminded not to forget the rural folk whose vote returned them to power and will now have to bear the burden from the hike in fuel price. The former group editor-in-chief of the Umno controlled New Straits Times Press (NSTP) Datuk A. Kadir Jasin said that the increase would burden the people, especially those who live in rural areas. While calling for rural folk to be cared for, Kadir faulted Prime Minister Datuk Seri Najib Razak’s administration for overspending, causing the people to pay the price. “On the outset, it looks like the government overspends. Expenses for the prime minister’s overseas trip have cost RM44.07m since Najib became PM five years ago. How much then did it cost to repair and renovate the (prime minister’s) official residence?” he questioned. (Malaysian Insider)

The 20 sen increase in petrol and diesel prices is unfair to the people and shows that the government has not been effecting in curbing its expenditure. Parti Keadilan Rakyat said. Lower income households have to bear the brunt of the increase in RON95 petrol and diesel prices while corporate interests are protected, PKR strategy director Rafizi Ramli said. "The hike in fuel price is equivalent to cutting the fuel subsidy for the public by 22% annually, while the affluent IPPs continue to enjoy corporate subsidies." (Financial Daily)

Daybreak Malaysia

September 4, 2013

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Corporate News…

RHB Bank will be appointing Dato’ Khairussaleh Ramli as the new deputy CEO, banking sources said, having poached him from Maybank, where he currently heads its Indonesian unit. (Financial Daily)

To certain extent, we are surprised by the above as Khairussaleh Ramli (KR) is one of the key members of the top management team of Maybank and is tasked to grow its unit in Indonesia, Bank Internasional Indonesia (BII) which is viewed as one of the key drivers for Maybank. The development will be slightly negative for Maybank given KR’s capabilities, experience and the contributions to the group. However, the impact would not be big given the strong management team for Maybank. On the flip side, the above will be positive for RHB Capital as KR will not only fill the top post in RHB Bank, he will also bring along a wealth of experience from Maybank. His experience in running BII will be handy for RHB Capital as it is in the midst of acquiring an Indonesian bank, Bank Mestika.

The cut in fuel subsidy starting yesterday, is not enough to change Fitch Rating's negative outlook on the Malaysian economy. It said that while it is a step in the right direction, the subsidy cuts are not enough to grow support for public finances.

This is because the RM1.1bn saved from fuel subsidy in 2013 and RM3bn in 2014, was also already factored in the rating agency's projections for the Malaysian economy from 2013 to 2015. "The upshot is that the corrective fiscal measures are too small to alter the Negative Outlook on Malaysia's 'A-' sovereign rating.

"Sustained reform implementation, if accompanied by structural measures to broaden the revenue base, could make a difference to the sovereign's credit profile. "But such an intensification of reforms that can also withstand potential growth headwinds, is not on the cards at present," it said in a statement.

Fitch added that efforts to improve public finances in the next 12 months will also not be easy as the ruling coalition's political position has weakened coming out of the May general election. "This means the government is likely to continue to encounter difficulties in implementing far-reaching, and much delayed, revenue-enhancing reforms such as the Goods & Services Tax (GST)," it said.

It also noted that the plunging prices of key export commodities will also put a damper on the country's growth and government tax receipts. It said such conditions would make it tough for the government to achieve its medium-term deficit target of three percent of gross domestic product by 2015. (Malaysiakini)

Malaysia will launch a green scheme for palm oil firms by 2014, a government official said, as the world's No.2 producer looks to boost demand and counter criticism its tropical oil supply harms the environment.

The Malaysian Sustainable Palm Oil (MSPO), which will be used as the national standard from 2014 onwards, will outline criteria that industry players need to meet before their products can be certified as "sustainable". "To move forward in the palm oil industry, we decided to have our own Malaysian standard. This will be the branding that we hope to make for Malaysian palm oil," Embas told reporters. "The MSPO will address a lot of anti-palm oil sentiment in the European and U.S. markets," he added.

At the moment green standards are set by the Roundtable on Sustainable Palm Oil (RSPO), an international body made up of

Daybreak Malaysia

September 4, 2013

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plantation firms, consumers and green groups that promote palm oil supply from estates that do not harm wildlife or cut forests to expand. But the RSPO is expensive to comply with and poses disadvantages to local stakeholders, Embas said.

"The RSPO is more of a burden to the industry. It has certain conditions that are too stringent, it is very costly, and they keep changing their goals. The premium that we get is also minimum," he added. Malaysia's scheme will be voluntary but the government plans to make it a compulsory standard for all industry players in stages, Embas said. (Reuters)

Felda Global Ventures Holdings Bhd's (FGV) takeover offer for Pontian United Plantations Bhd has become unconditional after acceptances crossed at the 50% threshold on Monday. FGV had collectively received valid acceptances totalling 4.35m Pontian shares, representing about 50.2% of the issued and paid-up share capital as at 5pm, Monday. The offer of RM140 per share will remain valid until 5pm, Sept 17, unless it is extended by FGV subject to provisions of the code, said the company. (Financial Daily)

Global biodiesel production will advance to 24.7m metric tons in 2013 as producers direct more soybean oil, the leading feedstock used for it, toward the fuel amid declining vegetable oil prices, Oil World said. Biodiesel output will increase 6.3% in 2013 compared with a 5.8% rise last year, the Hamburg-based researcher said. Palm oil, the second-biggest feedstock used for fuel output, is expected to advance 11% to 6.34m tons in 2013. (Bloomberg)

The Employees Provident Fund (EPF) posted RM9.16bn or a 20% increase in investment income in 2QFY13, driven by contribution from equities. Equities generated RM5.6bn or a 45.7% increase during the quarter compared to RM3.8bn in 2QFY12. "This increase was predominantly attributed to gains realised in domestic equities when we capitalised on the opportunities arising from improved trade liquidity and market prices in the domestic equity market in May and June, following the completion of the 2013 general election," CEO Datuk Shahril Ridza Ridzuan said.

Real estate and infrastructure registered strong growth of RM296.3m from RM14.4m in 2QFY12.

Income from Malaysian government securities and equivalents was RM1.53bn, up RM34.2m.

Money market instruments contributed RM215.2m.

Income from loans and bonds was lower at RM1.53bn compared to RM2.06bn in 2QFY12, due to recognition of a one-off gain last year. (Malaysian Reserve)

The government has yet to decide which projects would be postponed, but maintained that the MRT project would proceed as planned, Prime Minister Datuk Seri Najib Tun Razak said. He said the government would consider carefully the public sector projects to be undertaken. "Projects with low import content and high-multiplier effects would be given priority, without jeopardising economic growth. However, projects with high import components would be sequenced accordingly." he said. (StarBiz)

Tune Insurance Malaysia Bhd's business has grown rapidly since it was acquired by Tune Ins Holdings Bhd in May last year, says CEO Danie Su Tieng Teck. "Before Tune Ins stepped into the picture and our subsequent partnership with AirAsia Bhd, this company was up for sale and it was difficult to retain

Daybreak Malaysia

September 4, 2013

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good staff, attract new talent and grow the business," he said. "However, since the acquisition and within 12 months, we saw an increase of 40% in our top line as well as 10% underwriting profits for 2012. Prior to the acquisition, we never had any underwriting profits."

The acquisition of Oriental Capital Assurance (OCA) and subsequent rebranding to Tune Insurance and integration into the Tune family has been all about leveraging on the strengths in OCA, including good staff, agents and customers, eliminating weaknesses and adding agents, processes, products and technology.

Su said that the AirAsia partnership has also helped pave the way for new simple products to be distributed through digital marketing. (BT)

Lithuania, the largest country among three Baltic states, has invited Petronas to participate in the bidding for a contract to supply liquefied natural gas (LNG) for its LNG terminal in Klaipeda Port. Its Economy Minister Evalda Gustas said the country's interest was conveyed at a meeting with Petronas president and group chief executive officer Tan Sri Shamsul Azhar Abbas and executive vice-president (gas and power business) Datuk Anuar Ahmad, yesterday.

"We see Petronas as a very serious possible partner," Gustas said, adding that the tendering process has started and will be finalised by year-end. Petronas, he said, has to decide this month or next whether it wants to participate. (BT)

Malaysia Airlines (MAS) will add one more daily flight from Kuala Lumpur to Medan effective 15 September 2013, citing an increase in demand. With the addition, MAS will fly three times daily into Medan with a total weekly capacity of 6,720 seats. A two-class configured B737-800 aircraft with 144 economy seats and 16 business class seats will be used for the added frequency. (MAS)

Panasonic Energy Malaysia Sdn Bhd (PECMY), a solar manufacturing company set up by Panasonic Corp, has started the full-scale production of HIT (Heterojunction with Intrinsic Thin-layer) solar modules at its RM1.84bn plant here. Its managing director Yasuyoshi Kawanishi said the plant has an annual production capacity of 300 megawatts (MW). With the factory now at full-scale operation, Panasonic's overall production capacity will increase to 900 MW from 600 MW, he said. (BT)

Ekuiti Nasional Bhd (Ekuinas) has picked five local private equity (PE) firms under its Outsourced Programme (OP) to undertake investments from a combined RM373m funds provided by it and other private investors. The five firms have identified their target companies and a few will start investing between RM10m and RM30m by the end of the year, Ekuinas chief executive officer Datuk Abdul Rahman Ahmad said after making an announcement on the five PE firms and launching OP Tranche 2, here, yesterday.

The PE companies are Tael Partners, RM Capital Partners, Tuas Capital Partners and CMS Opus Private Equity. Another firm, Asiasons, has been selected as the replacement manager for the OP Tranche 1 launched earlier. (BT)

Hibiscus Petroleum Bhd announced yesterday that the Norwegian Ministry of Petroleum and Energy has approved the acquisition of four production licences in the Norwegian Continental Shelf by Lime Petroleum Norway AS (Lime Norway) from North Energy ASA. Lime Norway is a wholly-owned subsidiary of Lime Petroleum plc, an entity jointly controlled by Hibiscus Petroleum Schroder & Co Banque SA and Rex Oil & Gas Ltd. In April 2013,

Daybreak Malaysia

September 4, 2013

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Hibiscus Petroleum announced the finalisation of up to six pro-duction licences to be acquired from North Energy. (BT)

The China-Malaysia Qinzhou Industrial Park (QIP) in Guangxi is expected to begin operations next year, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed. The project, which has a sister industrial area in the form of the Malaysia-China Kuantan Industrial Park (MCKIP) in Gebeng, Pahang, will serve as a strong foundation for local and foreign investors to venture into the global market. QIP, the first of its kind collaboration, covers a 1.5 sq km area and will be developed in three phases.

It now has six projects worth Rmb4.78bn (RM2.54bn) in the areas of pharmaceutical products and halal goods, among others. Once fully completed, QIP will feature manufacturers in the fields of machinery, food processing, biotechnology, information technology and electronics. (NST)

Solid Automotive Bhd’s initial public offering (IPO) available for the Malaysian public subscription has been oversubscribed by 9.8x. The company said a total of 4,100 applications for 81.224m shares with a value of RM45.4m were received from the Malaysian public. Meanwhile, the bumiputra portion received a total of 1,574 applications for 29.8m shares, representing an oversubscription rate of 6.96x. “For the public portion, a total of 2,526 applications for 51.3m shares, an oversubscription rate of 12.7x, were received,” it said in a statement. (Starbiz)

AIA Bhd has emerged as a substantial shareholder in Prestariang Bhd with a 5.03% indirect interest via Orange Policy Sdn Bhd. Meanwhile, the Employees Provident Fund had also disposed 667,800 shares and now has a direct 5.53% stake in the same company. (Starbiz)

Alam Maritim Resources Bhd unit Alam Maritim (M) Sdn Bhd has been awarded two contracts from an established oil and gas company for the provision of a anchor handling tug vessel and a straight supply vessel. The total value of the contracts was RM37m. (Starbiz)

The CentralPlaza@i-City mall, a 60:40 project between Thailand's leading retail property developer Central Pattana Pcl and I-Bhd, is expected to generate RM60m in pre-tax profit per year during the first lease term, according to I-Bhd deputy chairman Datuk Eu Hong Chew. He said that by then I-Bhd's group profits (before the mall contribution) was expected to be in the region of RM200m per year resulting from growth in property development as well as leisure business. (StarBiz)

Integrated Rubber Corp Bhd (IRCB) will get a capital injection by investors Cheang Poy Ken and Keen Setup Sdn Bhd for RM44.8m for its debt settlement. IRCB is also expected to enter into a debt-settlement agreement with Malayan Banking Bhd, Maybank Islamic Bhd, Ambank (M) Bhd and CIMB Bank Bhd for the full and final settlement of all amounts of borrowing or indebtedness or liability including without limitation principal, interest, costs, charges or expenses or other liabilities up till the settlement date owed. “The lenders shall then cancel or withdraw any demand or proceedings made for any claims under their respective credit facilities prior to the date of the debt settlement agreement, if any,” its statement at Bursa Malaysia said. (Starbiz)

Daybreak Malaysia

September 4, 2013

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Aluminium Corp of China (Chalco), the top producer of the metal in China, has suspended a smelter project in Malaysia worth more than US$1bn, a company spokesman said. "The project is stalled now," the spokesman said. Chalco signed a frame agreement with Malaysian company Gulf International Investment Group Holding in 2010 to jointly build the aluminium smelter in Sarawak using local cheap hydro-power. The plant was set to have 370,000 tonnes of capacity a year, according to Chalco's website. (Reuters)

To expedite its turnaround plan, financially stressed Silver Bird Group Bhd intends to renegotiate with its landlord AmanahRaya-REIT Managers Sdn Bhd for lower rental for the land where its manufacturing facilities are sited in Selangor. In a filing with Bursa Malaysia yesterday, the company said it had received a letter from AmanahRaya offering an extension of the lease of all that piece of land, including industrial warehouse complex erected thereon for a period of six months from Aug 16.

"If the company (Silver Bird) does not reply within the said seven business days, the company shall deemed not interested to continue with the lease of the demised premises and will be required to vacate the demised premises within 30 days of the date of the said letter,' said AmanahRaya in the letter written to Silver Bird. (Edge Daily)

Daybreak Malaysia

September 4, 2013

10

BMSB: Changes in shareholdings

Type of No of Ave Price

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

EPF 29/8 Disposed 5,965,300 TELEKOM MALAYSIA

EPF 29/8 Disposed 3,303,900 SAPURAKENCANA PETROLEUM

EPF 29/8 Disposed 1,943,100 DIALOG GROUP

EPF 29/8 Disposed 1,826,600 GAMUDA 

EPF 29/8 Disposed 1,768,000 DIGI.COM

EPF 29/8 Disposed 667,800 PRESTARIANG

EPF 27/8 Disposed 593,000 IJM CORPORATION 

EPF 29/8 Disposed 500,000 KPJ HEALTHCARE

EPF 29/8 Disposed 2,700 PETRONAS GAS

Skim Amanah Saham Bumiputera 28/8 Disposed 3,093,500 MALAYAN BANKING

Skim Amanah Saham Bumiputera 28/8 Disposed 3,000,000 MAXIS

Great Eastern Holdings Limited 28/8-29/8 Disposed 619,300 STAR PUBLICATIONS

Mitsubishi UFJ Financial Group, Inc. 28/8 Disposed 2,317,300 POS MALAYSIA

Mitsubishi UFJ Financial Group, Inc. 28/8 Disposed 19,200 BURSA MALAYSIA

Mitsubishi UFJ Financial Group, Inc. 28/8 Disposed 300 BRITISH AMERICAN TOBACCO

EPF 29/8 Acquired 5,850,000 CIMB GROUP

EPF 29/8 Acquired 4,500,000 MAXIS

EPF 29/8 Acquired 4,365,700 SIME DARBY

EPF 29/8 Acquired 4,000,000 MALAYAN BANKING

EPF 29/8 Acquired 3,100,100 AIRASIA

EPF 27/8-29/8 Acquired 2,683,200 AFFIN HOLDINGS 

EPF 29/8 Acquired 2,500,000 AMMB HOLDINGS

EPF 29/8 Acquired 2,000,000 BURSA MALAYSIA

EPF 29/8 Acquired 1,701,900 IHH HEALTHCARE

EPF 29/8 Acquired 1,669,500 WCT HOLDINGS

EPF 29/8 Acquired 1,661,000 MALAYSIA AIRPORTS

EPF 29/8 Acquired 1,198,600 AXIATA GROUP

EPF 27/8-29/8 Acquired 1,055,200 DRB-HICOM

EPF 29/8 Acquired 850,000 UEM SUNRISE

EPF 29/8 Acquired 798,000 PERISAI PETROLEUM

EPF 29/8 Acquired 500,000 SP SETIA

EPF 29/8 Acquired 500,000 TA ANN HOLDINGS

EPF 29/8 Acquired 450,000 KUALA LUMPUR KEPONG

EPF 29/8 Acquired 402,600 PUBLIC BANK

EPF 29/8 Acquired 360,100 POS MALAYSIA

EPF 29/8 Acquired 317,300 PPB GROUP

EPF 29/8 Acquired 291,200 UOA DEVELOPMENT

EPF 29/8 Acquired 214,300 TIME DOTCOM

EPF 29/8 Acquired 159,200 IJM LAND

EPF 29/8 Acquired 71,000 HONG LEONG BANK

EPF 29/8 Acquired 64,000 LAFARGE MALAYSIA

EPF 29/8 Acquired 44,500 TAN CHONG MOTOR 

EPF 29/8 Acquired 6,900 UNITED PLANTATIONS

EPF 29/8 Acquired 5,000 BRITISH AMERICAN TOBACCO

Skim Amanah Saham Bumiputera 28/8 Acquired 852,600 AXIATA GROUP

Skim Amanah Saham Bumiputera 28/8 Acquired 800,000 GAMUDA

Skim Amanah Saham Bumiputera 29/8 Acquired 750,000 SIME DARBY

Skim Amanah Saham Bumiputera 28/8 Acquired 500,000 CAPITAMALLS MALAYSIA TRUST

Skim Amanah Saham Bumiputera 22/8 Acquired 11,700 FRASER & NEAVE

Permodalan Nasional Berhad 29/8 Acquired 750,000 SIME DARBY

Lembaga Tabung Angkatan Tentera 27/8-29/8 Acquired 233,100 DKSH HOLDINGS

Lembaga Tabung Angkatan Tentera 28/8 Acquired 40,000 TIEN WAH PRESS 

Mitsubishi UFJ Financial Group, Inc 28/8 Acquired 8,040,000 CIMB GROUP

Mitsubishi UFJ Financial Group, Inc 28/8 Acquired 11,100 UNITED PLANTATIONS

Mitsubishi UFJ Financial Group, Inc 28/8 Acquired 2,100 AEON CO. (M) 

YTL POWER INTERNATIONAL 3/9 Shares Buy Back 1,160,000 YTL POWER INTERNATIONAL 1.58

HAP SENG CONSOLIDATED  3/9 Shares Buy Back 300,000 HAP SENG CONSOLIDATED  2.10

MUDAJAYA GROUP 3/9 Shares Buy Back 33,300 MUDAJAYA GROUP 2.51

BERJAYA SPORTS TOTO 3/9 Shares Buy Back 20,000 BERJAYA SPORTS TOTO 4.00 SOURCES: BMSB

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BMSB: Changes in shareholdings

Type of No. of Ave Price

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

UOA DEVELOPMENT 3/9 Shares Buy Back 10,000 UOA DEVELOPMENT 2.24

PARKSON HOLDINGS 3/9 Shares Buy Back 9,500 PARKSON HOLDINGS 3.38

DAIBOCHI PLASTIC AND PACKAGING 3/9 Shares Buy Back 8,000 DAIBOCHI PLASTIC AND PACKAGING3.30 SOURCES: BMSB

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BMSB: ESOS & others

4-Sep-13 No Of New Shares Date of Listing Nature of transaction

MUHIBBAH ENGINEERING 318,000 04-Sep-13 Exercise of ESOS SOURCES: BMSB

BMSB: Off-market transactions

3-Sep-13 Vol

TROP 40,000,000

UEMS 8,000,000

MAYBANK 7,250,000

SCOPE 5,200,000

MAS 5,000,000

FAJAR 3,240,000

COMPUGT 2,860,600

TDEX-OR 1,955,300

COMPLET 1,422,000

PBBANK 1,235,900

BJFOOD 1,000,000

ARMADA 1,000,000

ENCORP 795,000

WELLCAL 500,000 Notes:CN-Crossing deal on board lots

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

SOURCES: BMSB

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BMSB: Dividends

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

MAXIS Interim - single tier 8.00 6-Aug-13 4-Sep-13 6-Sep-13 3-Oct-13

PETRONAS DAGANGAN Interim ( 1.2 Sen -single tier ) 17.50 21-Aug-13 4-Sep-13 6-Sep-13 27-Sep-13

MAH SING GROUP First and final - single tier 7.20 31-May-13 5-Sep-13 9-Sep-13 20-Sep-13

& 0.4 sen less income tax of 25%  0.40

IOI CORPORATION 2nd Interim -single tier 8.50 21-Aug-13 5-Sep-13 9-Sep-13 26-Sep-13

WAH SEONG 1st Interim -single tier 2.00 23-Aug-13 5-Sep-13 9-Sep-13 3-Oct-13

JOBSTREET 2nd Interim -single tier 3.50 22-Aug-13 9-Sep-13 11-Sep-13 27-Sep-13

PRESTARIANG Interim - single tier 3.00 27-Aug-13 9-Sep-13 11-Sep-13 26-Sep-13

WELLCALL 3rd Interim -single tier 5.00 26-Aug-13 10-Sep-13 12-Sep-13 26-Sep-13

TELEKOM MALAYSIA Interim - single tier 9.80 29-Aug-13 10-Sep-13 12-Sep-13 27-Sep-13

MEDIA PRIMA 1st Interim -single tier 3.00 28-Aug-13 11-Sep-13 13-Sep-13 30-Sep-13

TAN CHONG Interim + Special ( 9 Sen) 15.00 29-Aug-13 11-Sep-13 13-Sep-13 30-Sep-13

BINTULU PORT Interim - single tier 7.50 29-Aug-13 18-Sep-13 20-Sep-13 11-Oct-13

CAHYA MATA SARAWAK Interim 5.00 30-Aug-13 19-Sep-13 23-Sep-13 18-Oct-13

LAFARGE MALAYSIA 2nd Interim -single tier 8.00 27-Aug-13 23-Sep-13 25-Sep-13 31-Oct-13

DRB-HICOM Final ( 4.0 sen tax exempt ) 4.50 27-Aug-13 23-Sep-13 25-Sep-13 18-Oct-13

BIMB HOLDINGS Interim - single tier 3.50 28-Aug-13 23-Sep-13 25-Sep-13 31-Oct-13

STAR PUBLICATIONS Interim - single tier 6.00 14-Aug-13 25-Sep-13 27-Sep-13 18-Oct-13

CARLSBERG Interim - single tier 5.00 27-Sep-13 25-Sep-13 27-Sep-13 11-Oct-13

DIGI.COM Interim - single tier 2.00 30-Aug-13 25-Sep-13 27-Sep-13 18-Oct-13

JT INTERNATIONAL Interim - single tier 11.00 23-Aug-13 26-Sep-13 30-Sep-13 25-Oct-13

GENTING PLANTATIONS Interim 3.75 28-Aug-13 26-Sep-13 30-Sep-13 17-Oct-13

GENTING MALAYSIA Interim 4.30 29-Aug-13 26-Sep-13 30-Sep-13 22-Oct-13

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

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

BMSB: Proposed cash calls & trading of rights…

4-Sep-13 Ann Date Proposed

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

BMSB: New Listing

Company Issue price Listing sought Tentative

Public Issue Offer for sale Private placement listing date

Solid Automotive Berhad 0.56 35,384,000 8,361,000 18,036,500 Main Market 12-Sep-13

No of shares

SOURCES: BMSB

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Corporate Actions

September 2013

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7

MPC External Reserves, External Trade

8 9 10 11 12 13 14

IPI, Manufacturing Sales, Astro 2Q

15 16 17 18 19 20 21

Malaysia Day CPI

22 23 24 25 26 27 28

External Reserves SP Setia 3Q

29 30

Money Supply, PPI

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

October 2013

SUN MON TUE WED THU FRI SAT

1 2 3 4 5

External Trade

6 7 8 9 10 11 12

External Reserves IPI, Manufacturing Sales

Top Glove 4Q Umno Youth and Puteri elections

13 14 15 16 17 18 19

Hari Raya Qurban Umno supreme council elections

20 21 22 23 24 25 26

External Reserves CPI Budget 2014

27 28 29 30 31

Money Supply, PPI

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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17

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

Description Excellent Very Good Good N/A

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Recommendation Framework #1 *

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

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

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

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

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

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

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

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

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

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

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

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

justifiable company or industry-specific reasons.

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

Recommendation Framework #2 **

Stock Sector

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

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

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

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

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

both over the next 12 months.

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

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

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

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

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

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

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

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

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

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

Daybreak Malaysia

September 4, 2013

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