Maybank IB Researchupload.xinhua08.com/2012/0322/1332405274739.pdf · Expanding profile Four core...
Transcript of Maybank IB Researchupload.xinhua08.com/2012/0322/1332405274739.pdf · Expanding profile Four core...
Initiating Coverage 21 March 2012
SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Maybank IB Research PP16832/01/2013 (031128)
A new O&G hope
Initiate coverage with a Buy and RM2.20 target price. Yinson offers
a niche exposure to the nascent Vietnamese O&G sector without the
Dong currency risk. With a projected 3-year net profit CAGR of 32%,
Yinson provides strong earnings visibility with inexpensive valuations
(7.0x PER, 1.0x PBV, 0.4x PEG for FY14). Clinching another rewarding
floating solution contract will be the next major re-rating catalyst.
A direct proxy to growth in Vietnamese O&G. Yinson is steadily
remodelling its business profile, from a Malaysia-based land logistics
and trading group to an O&G play, with Vietnam-centric operations. Its
two offshore supply vessels (a 3,000dwt PSV and an AHTS) are
deployed for PetroVietnam‟s offshore operations on long-term charters
(7 years) and its floating storage and offloading (FSO) unit, co-owned
with Vietnam‟s National Oil Company (NOC) and under construction
with a 1QCY13 delivery date, has a 20-year bareboat charter contract.
Prospects are O&G-driven. Earnings contributions from the O&G
division are set to quadruple, from 26% of group net profit in FY12 to
85% in FY14. Growth will be anchored by its FSO contract, which will
contribute about 33-46% of FY14-15 net earnings, we estimate. The
40%-owned bulk cargo port operations, acquired in July 2011, will also
provide long-term growth, as it expands warehouses and cargo
facilities. Operating risk is manageable and the currency of commerce
will be USD (including for the OSVs and FSO).
3-year net profit CAGR of 32%, with upside potential. We see
Yinson prospecting for new FSO/FPSO projects for growth, as it still
has the balance sheet to fund another FSO/FPSO on a joint-venture
basis. The Vietnam and Malaysia markets are its likeliest prospects. 11
floating solution projects are in the pipeline for rollout over the next two
years in these markets. Clinching another FSO/FPSO contract will be
another major positive, warranting a re-rating for the stock.
32% upside to target price. Valuations are undemanding relative to
peers with market capitalisation of under RM1b. We see upside to
Yinson‟s share price, as it currently trades at a single-digit PER with
double-digit earnings growth, and multiple expansion plans ahead.
Yinson Holdings – Summary Earnings Table FYE Jan (RM m) 2010A 2011A 2012F 2013F 2014F Revenue 470.2 640.8 672.8 651.9 668.0
EBITDA 22.1 39.0 49.4 64.2 97.1
Recurring Net Profit 7.1 16.8 25.0 31.3 45.1
Recurring Basic EPS (Sen)
3.8 8.9 13.3 16.6 24.0
EPS growth (%) (37.9)% 133.2% 41.5% 19.3% 44.3%
DPS (Sen) 0.7 0.8 2.5 2.5 2.5
PER 39.6 17.0 12.0 10.1 7.0
EV/EBITDA (x) 9.3 7.6 10.1 12.0 7.1
Div Yield (%) 0.4 0.4 1.5 1.5 1.5
P/BV(x) 1.1 0.9 1.3 1.2 1.0
Net Gearing (%) 0.9 1.5 0.8 1.7 1.2
ROE (%) 7.7% 16.3% 14.6% 12.4% 15.8%
ROA (%) 3.6% 5.9% 5.9% 4.7% 5.5%
Source: Maybank-IB
Yinson Holdings
Buy (new)
Share price: RM1.67 Target price: RM2.20 (new)
Wong Chew Hann, CA [email protected] (603) 2297 8688
Chong Ooi Ming [email protected] (603) 2297 8676
Description: Vietnam focused O&G solutions and project manager with 4 core operations: FPS projects, marine vessels, and land logistics and port operations.
Information: Ticker: YNS MK Shares Issued (m): 188.4 Market Cap (RM m): 314.6
3-mth Avg Daily Turnover (USD m): 0.42 KLCI: 1,577.62 Major Shareholders: %
Lim Han Weng & familiy 62.0
Price Performance:
52-week High/Low RM1.72/RM0.55
1-mth 3-mth 6-mth 1-yr YTD 29.5 47.5 90.2 195.1 29.9
Price Chart (RM1.67)
0.0
0.5
1.0
1.5
2.0
Mar-10 Jul-10 Nov-10 Mar-11 Jul-11 Nov-11
YNS MK Equity
Yinson Holdings
21 March 2012 Page 2 of 16
Expanding profile
Four core divisions. The group is predominantly involved in offshore
marine services (i.e. floating solutions and OSVs), commodity trading,
logistics services and port operations.
(i) Offshore marine services. Starting out as a shipbroker for O&G
service providers, Yinson has graduated to owning its own vessels.
It currently owns two offshore support vessels (OSVs), a 3,000dwt
platform supply vessel (PSV; PTSC Huong Giang), and a 5,000bhp
anchor handing tug and supply (AHTS; PTSC Lam Kinh). Both are
on long-term charter to PetroVietnam:
PTSC Huong Giang: 2010-2014 plus 2 years extension
PTSC Lam Kinh: 2011-2013 plus 5 years extension.
Its crowning achievement to date is its recently-secured 20-year
bareboat charter for a floating, storage, offloading (FSO) vessel,
marking its breakthrough into the floating solutions industry. The
vessel is under construction at the Sundong shipyard, South Korea.
Existing OSV and FSO bare boat contracts broken into firm (orange) and option (grey) period
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
FSO Bein Dong
PTSC Lam Kinh
PTSC Huong Giang
Contract Period: 2011- 2013 (2018)Est. dayrate: USD 7,150
Contract Period: 2010- 2015 (2017)Est. dayrate: USD 10,500
Contract Period: 2013- 2023 (2033)Est. dayrate: USD 57,974 (year 1-10), USD 35,451 (year 11-20)
Sources: Company, Maybank-IB
(ii) Commodity trading. Yinson trades in: (i) vessel supplies for fresh
water, hydraulic fluids, marine gas and oil, lubricant, diesel and
O&G steel-related products (i.e. pipe fittings and flanges), (ii) scrap
steel, mill scales and iron ore, and (iii) building materials (i.e. sand,
cement, steel bars, bricks and granite).
(iii) Logistics services. The group offers trucking services in support
of its trading services. Most of the items carried are in-house cargo.
Some of its notable customers are MMHE, Dialog and YTL Group.
With the sale of its third-party haulage operations in Feb 2011,
Yinson has steadily realigned its trading and logistics segments
into support units for its O&G activities.
(iv) Port operations. Yinson acquired a 40% stake in the Southern
Vietnamese port of Phu My for RM26.4m in July 2011. PTSC is its
partner, with the balance 60% stake. While only breaking even
now, we foresee the port operations to become the group‟s next
earnings driver in Vietnam after the marine segment.
Yinson Holdings
21 March 2012 Page 3 of 16
Yinson’s evolving earnings profile
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028
Logistics & Trading
OSVs
FSO BeinDong
2nd floater
Phu My port
Source: Company
Growing from a family-owned enterprise. Chairman and Managing
Director Lim Han Weng, along with management (comprising family
members), own a collective 62% of the Group. Its institutional following
has risen rapidly over the last 12 months, from zero to 15%, reflecting
its developing profile. Liquidity has picked up as well, with average daily
volume traded at 647k shares now, from 84k previously.
Group operating structure and shareholding
Offshore Services
• Floating solutions
projects• Vessel chartering &
broking
Commodity Trading
•O&G Equipment
•Construction materials
Logistics Services
• Land Transportation
• Port and deep sea handling
Founding family (62%)Free Float (38%)
Port Services
• Dry bulk cargo
handling• Warehouse rental
Source: Company
Financial profile
The trading division is, for now, the largest contributor to
Yinson‟s earnings, accounting for 79-85% of its revenue and
50-89% of its EBIT over the last five years.
Contributions from the logistics services division have been on
a steady decline, with revenue and EBIT falling over the last
three years, from RM138m and RM8m in FY09 to RM103m
and RM1m in FY11 respectively.
The offshore marine services division is its growth segment.
Since its inception in FY10, revenue at this segment has tripled
from RM17m in FY10 to RM51m in 9MFY12, while EBIT has
surged, from RM1m in FY10 to RM9m in 9MFY12.
Yinson Holdings
21 March 2012 Page 4 of 16
Yinson: Revenue breakdown (by segment)
Logistics
24%
Marine
4%
Trading
72%
FY10 Revenue:470.2m
Logistics 16%
Trading 72%
Offshoremarine
services4%
Logistics
13%
Offshore
marine
services…
Trading
79%FY11 Revenue:
RM640.8m
Logistics 13%
Trading 79%
Offshoremarine
services 8%
Logistics9%
Marine
10%
Trading
81%9M FY12 Revenue:
RM549.9m
Offshoremarine
services10%
Logistics 9%
Trading 81%
Sources: Company, Maybank-IB
Yinson: EBIT breakdown (by segment)
Logistics
15%
Offshore
marine
services…
Trading
78%
FY10 EBIT: RM14.9m
Logistics 15%
Trading 76%
Offshoremarine
services 7%
Logistics1%
Offshore
marine
services…
Trading
89%
FY11 EBIT: RM33.0m
Logistics 1%
Trading 89%
Offshoremarine
services 10%
Logistics
11%
Offshore
marine
services…
Trading
57%
9M FY12 EBIT:RM29.4m
Logistics11%
Trading 57%
Offshoremarine
services32%
Sources: Company, Maybank-IB
Expanding margins. The group‟s blended EBIT margin is rising, from
3-5% in FY06-11 to 6% as at 9MFY12. The margin expansion is mainly
driven by increasing contributions from the lucrative offshore marine
services division. Among the three currently contributing divisions,
offshore marine services enjoy the highest EBIT margin (18.3% for
9MFY12), followed by logistics (3.6%) and trading operations (3.7%).
Changing EBIT contribution profile and rising EBIT margins
19.5 22.4 22.8 24.0
14.9
33.0 32.6
4.4
5.44.7
3.8
3.0
4.95.9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
0
10
20
30
40
2006 2007 2008 2009 2010 2011 9M FY12
Logistics (LHS) Offshore marine servicesTrading (LHS) Blended EBIT (RHS)(RM m) (%)
Sources: Company, Maybank-IB
Yinson Holdings
21 March 2012 Page 5 of 16
Developing into a Vietnam O&G play
A direct proxy to Vietnam’s O&G industry. Yinson is rapidly building
up its Vietnamese presence, especially in the O&G sector, in close
partnership with PetroVietnam, the nation‟s National Oil Company
(NOC). It built up its track record as a shipbroker in 2008 before turning
into an OSV operator in 2010 and FSO operator in 2011.
First Malaysian operator to own a PSV, chartered to PetroVietnam.
Its 100%-owned 3,000 dwt PSV (a.k.a. PTSC Huong Giang) is its
maiden venture as an OSV operator in Vietnam. Yinson has a 7-year
contract (Aug 2010-2017) to bareboat-charter the PSV for
PetroVietnam‟s offshore projects for USD27m (RM80m) over the
contract period. The day rate is respectable at USD3.50 per dwt, and
we estimate Yinson will earn about RM7m in net profit p.a..
Its second vessel, is also chartered to PetroVietnam. Its 5,000bhp
AHTS (a.k.a. PTSC Lam Kinh) is similarly contracted on a 7-year basis
(Jul 2011-2018) for <USD20m over the contract period. The bareboat
charter has a reasonable day rate of USD1.43 per bhp. Yinson should
make about RM5m in net profit p.a. from this vessel charter.
Making inroads into floating solutions. The key highlight to Yinson‟s
offshore services operations to date would be its successful bid for a
FSO project from PetroVietnam last year. The FSO contract was
initially won by BW Offshore, but awarded to Yinson when BW
subsequently pulled out of the project.
To co-own a FSO with PetroVietnam. The FSO is under construction
at the Sungdong yard in Korea for USD150m, with a planned delivery
date of 1Q 2013. Yinson will co-own the FSO with PetroVietnam on a
49:51 joint venture basis, a major positive in our view. As Yinson will
have joint control over the FSO‟s management, the FSO‟s earnings will
be proportionately consolidated.
USD331m for 20 years. The FSO contract, valued at USD331m, is for
a 20-year period commencing Mar 2013. The FSO will be deployed for
the Moc Tinh and Hai Tach gas condensate fields (on a bareboat
basis), which are owned by Bien Dong Petroleum Operating Company
(BDPOC), a wholly-owned subsidiary of PetroVietnam.
A rewarding project with a 16% equity IRR. The key feature of this
contract is that the bareboat daily charter rate is heavily front-loaded in
its first four years of operations (initial 10 years‟ estimated average
bareboat rate: USD57,974 per day; subsequent 10 years: USD35,451
per day). We estimate the cashflow will allow Yinson to repay the
USD120m bank loan, which effectively shortens the payback period of
the asset to between 5 and 7 years.
Manageable operating risk. There is no operations and maintenance
(O&M) risk as the FSO charter is on a bareboat basis. Based on the
field development report, these fields have a reserves lifespan of 22
years, which is longer than the 20-year FSO contracted period. The
combined reserves at the two gas fields are estimated at 2.3 trillion
cubic feet of gas and 100m barrels of associated liquids. As such, the
probability that FSO‟s charter will be extended beyond the committed
period is high.
Yinson Holdings
21 March 2012 Page 6 of 16
Expected to contribute RM15m-RM32m p.a. in its first four years of
operations. We base our forecast on Yinson‟s 49% stake in the FSO,
taking into account its depreciation policy (reducing balance) and
financing costs. Cost of debt is c. 4.0% p.a. on a LIBOR plus basis, in
USD, over a 5-year repayment term.
Jointly-controlled entity (JCE) accounting for its 49% stake. The
FSO is scheduled to be delivered on site by May 2013, with first gas
production expected within a month‟s time. Yinson has stated that it will
adopt JCE accounting for its 49% stake in FSO Bien Dong. This being
the case, instead of only equity accounting its earnings as an
associate, Yinson will consolidate 49% of FSO‟s accounts (i.e. revenue,
EBIT, profit, cash, debt etc.). This is due to Yinson‟s involvement in the
FSO‟s daily operations and the fact that it holds an equal number of
board seats with PTSC in the FSO holding company (2 seats each).
Currency risk management. All of Yinson‟s offshore marine charter
contracts are denominated in USD, thus eliminating the risk of
exposure to Vietnam‟s Dong, which has been devalued six times over
the past four years.
Recent corporate developments
Private placements and rights issue to part-fund asset purchases.
Yinson recently completed a 10% private placement (issuing 6.8m new
shares at RM1.65 per share) and a 3-for-2 rights issue (post
placement, at RM0.75 per unit), raising RM11m from the private
placement and RM85m from the rights issue or a total of RM96m. The
monies, which will effectively cover about 27% of the group‟s RM350m
capex requirement over the next 1 year, will mainly be used to fund the
FSO unit, currently under construction.
Utilisation of proceeds from the rights issue & private placement Details Value (RM’m)
1 FSO capex 51.2
2 Repayment of shareholder bridging loan * 36.8
3 Working capital 5.9
4 Rights issue expenses 2.0
Total 96.0
*MD Lim Han Weng advanced Yinson funds to bridge the FSO capex prior to completion
of the Rights Issue. Subsequently, the allocation to repay MD Lim Han Weng will be set-
off directly against his rights issue obligations.
Sources: Company, Maybank-IB
Strengthened share base and gearing level. Post the private
placement and rights issue exercises, Yinson‟s share base now stands
at 188m (+275%) with shareholders funds at RM238m as at end-FY12.
Current net debt of RM185m (net gearing: 0.8x) will rise to RM454m
(+145%) proforma once loans for the FSO and OSVs (i.e. c. RM368m)
are fully drawn down, raising proforma net gearing to 1.7x (from 1.1x).
Yinson Holdings
21 March 2012 Page 7 of 16
Still room to gear up further. While the 1.7x net gearing level appears
high, RM150m of the Group‟s borrowings are due to its trading
operations. These are largely short-term debts (i.e. bankers‟
acceptances, trade finance, revolving credit), which are backed by its
trade receivables. Stripping out this debt, Yinson‟s net gearing would
be about 1.2x, which we believe is reasonable, especially since the
long-term nature of Yinson‟s current offshore marine charter contracts
would provide sufficient cashflows to meet repayments.
Has the balance sheet for another FSO/FPSO project on JV basis.
Assuming a maximum net gearing level of 1.7x (i.e. its current peak
level), we estimate that Yinson could take on up to RM250m in new
debt (in FY15) to fund another new small-size floating solution (i.e. an
FSO or FPSO), provided it adopts an equity holding level of <50%. In
the absence of further newbuilds, we estimate its net gearing level
could drop to below 0.5x by FY16 due to the strong cashflow stream.
Net debt and net gearing level (FY05-FY16)
93 143 90 118 73 92 181 185 454 371 271 170
1.7
2.3
1.21.3
0.70.9
1.5
0.8
1.7
1.2
0.8
0.4
0.0
0.5
1.0
1.5
2.0
2.5
0
100
200
300
400
500
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13F FY14F FY15F FY16F
Net debt (RM m) LHS Net gearing (x) RHS (x)(RM m)
Source: Maybank-IB
FSO, PSV and AHTS contract value vs. capex
133.6 102.9
1010.0
450.0
1,143.7
552.9
0
200
400
600
800
1,000
1,200
1,400
Contract Value Capex
PSV & AHTS FSO Bein Dong(RM m)
Source: Maybank-IB
Yinson Holdings
21 March 2012 Page 8 of 16
Positive outlook
Another floating solution project in the offing? We believe its
current FSO contract will be a major boost to Yinson, both operationally
(track record) and financially (cashflow), when tendering for the next
contract. We identify Vietnam and Malaysia as prospective markets for
Yinson to expand its floating solutions fleet size.
(i) Vietnam. Vietnam is anticipated to roll out up to seven offshore
projects between 2012 and 2014 which will require floating
solutions (FPSO, FSO or MOPU). The following fields have been
identified as potential prospects for floating solutions: (i) Lam Son,
(ii) Gau Chua-Ca, (iii) Ham Rong, (iv) Chevron‟s Block B, (v) Dai
Nga, (vi) Block 102/106 and (vii) Lac Da Vang.
(ii) Malaysia. Malaysia too could be a prospective market for Yinson
due to the slew of floating solution awards expected soon. The
fields that may be of interest are the: (i) Kamelia, (ii) Belud, (iii)
Bunga Dahlia and Teratai and (iv) Spaoh fields.
Prospective floating solution projects identified
Country Operator Description
Vietnam PetroVietnam/
PETRONAS
• We expect the Lam Son Joint Operating Company‟s FPSO contract to be awarded in 2012. The
FPSO will develop two oilfields in the Cuu Long basin. The field, co-owned by PetroVietnam and
PETRONAS, requires a FPSO with up to 18,000 bpd of oils processing capacity and storage
space for 350,000 barrels. The FPSO will initially process oil from the Thang Long fields, followed
by the Dong Do field.
• We understand that the bid for the Lam Son FPSO now hangs in the balance due to financing
issues faced by LOI recipient Fred Olsen. Should Yinson enter a bid for this job, it will be
competing head on with none other than Bumi Armada.
• Other potential projects we believe Yinson could bid for are: (i) Gau Chua-Ca Cho, a marginal
field in Southern Vietnam which will call for a small FPSO, c. 8,000-10,000 bpd processing
capability, with first oil targeted for 2015, (ii) Ham Rong, located in the Tonkin Gulf (Northern
Vietnam) could use an FPSO (c. 25,000 bpd processing) or MOPU/FSO combination; first oil is
targeted for 2014 and (iii) Chevron’s Block B, located in the in the Gulf of Thailand, will use an
FSO to store condensates at its planned gas processing platform.
• There are three other projects in Vietnam; (i) Dai Nga, (ii) Blk 102/106 and (iii) Lac Da Vang,
which require FPSO, MOPU/ FSO or fixed platforms as production solutions. These projects are
scheduled to hit first oil in 2013-2015. These projects are at the „planned or being studied‟ stage.
Malaysia PETRONAS/ Hess/
Shell
• Up to 4 FPSO projects could be awarded this year in Malaysia. They are:
(i) SB 302 (Belud),
(ii) PM301/PM325 (Kamelia),
(iii) PM302 (Bunga Dahlia and Teratai) and
(iv) Gumusut-Kakap (a temporary FPSO with a short- medium-term charters)
• The first three are “fast-tracked” projects brought forward to boost Malaysian gas supply needs
with first gas/oil is targeted for 2014, while the last is a short-term contract.
• Belud FPSO - It has been reported that the M3nergy and EMAS consortium submitted the lowest
bid in a recent tender for the Belud FPSO, offering the FPSO Lewek Arunothai whose charter
was prematurely terminated in Thailand‟s Arthit field in 4Q2011. However, considering the FPSO
Arunothai‟s chequered operating history, Hess is reported to have offered Bumi and MISC a
second chance to match the consortium‟s bid.
• Kamelia and Bunga Dahlia & Teratai FPSOs - Both the Kamelia and Bunga Dahlia/Teratai
projects will require floating solutions for field development. With both fields targeted to achieve
first gas by 2014, we expect contract awards by this year. Should M3Nergy win the Belud job, we
reckon either Bumi or MISC could win one of these.
• Spaoh FPSO. The Spaoh field aka NC3 will likely use an FPSO or fixed platform. Further
appraisal is being planned. This field will hit first oil by 2014/16.
Sources: International Maritime Associates, Inc, Upstream online, Maybank-IB
Yinson Holdings
21 March 2012 Page 9 of 16
Financials 4QFYE1/12 results preview. We expect Yinson to report core net
profit of RM8m in 4QFY12 (+9% YoY), fuelled by higher contributions
from: (i) its new 5,000bhp AHTS, which was successfully charted out in
Oct 2011, and (ii) margin expansion for its logistics services, stemming
from its new focus on O&G-related activities. This will bring FY12
earnings to RM25m (+49% YoY) and represents a commendable 3-
year net profit CAGR of 25% (FY10-12). In addition, we expect Yinson
to declare a first and final gross DPS of 2.5sen (unchanged YoY),
representing a 14% dividend payout ratio (DPR) for FY12.
Secured growth path. Going forward, we forecast that Yinson will
deliver net profit of RM31m in FY13 (+25% YoY), RM45m in FY14
(+44% YoY) and RM58m in FY15 (+29% YoY). This implies a 3-year
net profit CAGR of 32%. Growth in FY13 will be driven by its two new
vessels (i.e. 8,000-10,000bhp AHTS) coming onstream in the coming
months, while FY14 will see a maiden contribution from its FSO
operations. Overall, Yinson will enjoy the full-year effect contributions
from these three newbuilds in FY15.
Well-structured 3-year net profit CAGR of 32%. We estimate the two
OSVs will add a combined RM7m-15m p.a. to net profit while its FSO
will add between RM15m and RM27m p.a., based on its 49% stake. To
sum it up, we are optimistic of Yinson‟s multi-tiered earnings growth
profile. As its cash pile builds up, we foresee Yinson securing another
floater project to maintain its stellar earnings growth momentum, while
developing the Phu My port into its future earnings driver.
Segmental earnings breakdown FYE Jan (RM m) 2011A 2012F 2013F 2014F 2015F
Revenue 640.8 672.8 651.9 668.0 685.6
-Logistics 103.4 80.4 75.0 75.0 75.0
- Marine 49.4 75.8 75.8 92.0 109.6
-Trading 504.7 516.5 501.0 501.0 501.0
EBIT 33.0 41.6 50.7 67.4 79.4
-Logistics 0.7 7.5 5.1 5.3 5.4
- Marine 3.2 13.8 28.3 51.8 63.7
-Trading 29.3 20.3 17.3 10.3 10.3
EBIT margin (%) 4.9 6.2 7.8 10.1 11.6
DPS (sen) 0.8 2.5 2.5 2.5 2.5
Sources: Company, Maybank-IB
Yinson Holdings
21 March 2012 Page 10 of 16
Valuations
Initiating coverage with a RM2.20 target price. This implies an
undemanding PER of just 9x on FY14 earnings, on a relatively low
PEG ratio of 0.4x, for a growth stock with a 3-year net profit CAGR of
32%. Our target price is based on a sum-of-parts (SOP) valuation.
The OSVs and FSO are valued on a discounted cash flow
(DCF) basis, with a WACC of 8.3%. We feel DCF is
appropriate, as its OSVs and FSO are chartered out on long-
term contracts (typically between 7 and 20 years). Our estimate
of the FSO‟s DCF value takes into account the project‟s debt
burden, hence the relatively lower value vs. the OSV
operations (where the debt is incorporated at the group level).
We value its trading operations at 0.9x book value, on a cash
holding basis. The 0.9x valuation occurs as we impose a 10%
discount to account for collection risk/liquidation cost in the
event the operations are discontinued,
We value the logistics services operation on a 5x FY14 PER
multiple, a fair gauge based on PERs of local peers,
We value its port operations at a conservative 1x book value.
Though there is further upside potential, we withhold our
forecasts pending further clarity on their development plans,
We ascribe a resale value to the FSO‟s hull, post-deployment,
considering the FSO offers a newbuild hull with a 30-year
design life span, allowing cheaper reconversion.
Sum-of-parts (SOP) valuations
Operations Value
(RM’m)
Value
(RM/share)
Description
OSV 187.2 1.00 DCF based on 3 AHTS and 1 PSV; blended IRR of 15.7%; 8.3% WACC
FSO 125.7 0.67 DCF based on 49% stake; 16.0% IRR; 8.3% WACC
Trading operations
106.1 0.56 Receivables + cash – payables –short
term debt @ 90% recovery rate
Port operations 26.4 0.14 @ 1x BV of 40% stake
Logistics 19.7 0.10 @ 5x PE
FSO resale 25.0 0.13 @ 49% stake of FSO hull
Long term debt (75.1) (0.40)
Total 415.0 2.20
Source: Maybank-IB
Our sensitivity analysis shows a 19 sen/share impact on our RM2.20
SOP value for every 1ppt rise in our WACC assumption. At our RM2.20
SOP, the stock will trade at a FY13 PER of 13x and FY14 PER of 9x, in
line with its peers with market cap of below RM1b (see overleaf).
Further earnings upside could materialise, should Yinson clinch a
second floating solutions contract. We understand that management
plans to continue on a measured fleet renewal programme whilst
keeping its financial discipline. Whilst it is still early days, Yinson is
contemplating a policy of disposing its OSVs as they come off charter,
and potentially reinvesting in newer vessels to maintain a young,
competitive fleet.
Yinson Holdings
21 March 2012 Page 11 of 16
Peer comparison of small cap O&G stocks with market cap of below RM1b (calenderised)
Company Mkt cap Price TP EPS (sen) EPS Grth (%)
PE (x)
DPS (sen)
Div Yield (%)
Net gearing
PBV
(RM’m) (RM) (RM) 12F 13F 12F 13F 12F 13F 12F 13F 12F 13F (x) (x)
Alam Maritim 582.5 0.74 0.92 9.9 10.3 NM 3.4 7.5 7.3 0.7 0.7 0.9 0.9 0.7 1.0
Perdana Pet 344.1 0.70 0.83 4.9 6.7 NM 36.8 14.1 10.3 2.0 2.0 2.6 2.6 0.3 0.7
Tj. Offshore 248.7 0.85 0.70 3.0 3.2 NM 6.8 28.0 26.2 0.0 0.0 0.0 0.0 1.5 0.8
Perisai * 762.3 0.90 NA 10.7 10.7 NM 2.8 8.4 8.1 NM NM NM NM 0.7 2.2
Petra Energy * 238.1 1.11 NA 12.7 13.7 NM 14.2 8.7 7.7 1.8 1.8 1.5 1.5 0.3 0.7
Uzma * 158.4 1.98 NA 18.9 40.0 25.2 111.6 10.5 5.0 2.5 5.9 1.3 3.0 cash 2.2
Handal * 68.8 0.43 NA 3.7 NA NM NA 11.5 NA 1.0 NA 2.4 NA 0.1 0.7
Simple average 12.4 10.2 0.9 1.1 0.7 1.3
Simple average (ex-Tj. Offshore, Uzma) 10.5 8.1 1.0 0.8 0.6 0.9
Source: Maybank-IB * consensus estimates
Risk factors
Yinson‟s business profile opens the group to multiple business risks.
Below is a non-exhaustive list of the major risks confronting Yinson.
Oil price levels affect long-term investment plans.
Malaysia‟s and Vietnam‟s investment plans are dependent on
long-term oil price expectations, which can be affected by low
and/or volatile oil price levels. Our economics team projects an
average crude oil price in 2012 of USD115/bbl (Brent) and
USD100/bbl (WTI) which are conducive for oil & gas activities.
Financial leverage. Yinson has and will maintain a significant
level of leverage in line with the floating solutions‟ industry
norm. High debt service and other contractual obligations will
render Yinson sensitive to interruption in cashflows.
Contractual requirements. Floating solutions contracts
require Yinson to manage conversion cost, delivery schedules
and vendors throughout the process, for equipment, manpower
and yard space. Failure could result in damaging cost
overruns.
Client exposure. Yinson‟s main offshore marine services client
for now is PetroVietnam, leaving the group susceptible to
single client risk.
Track record. Yinson is still breaking new ground with its initial
FSO and thus will have to work harder than other, more
established players to secure its next job.
Counterparty risk. Yinson does not have a PETRONAS
license to operate in Malaysia. To bid for Malaysian jobs,
Yinson will have to partner local licensees, exposing it to
counterparty risk.
Yinson Holdings
21 March 2012 Page 12 of 16
Directors and Management
Name Designation Remarks
Lim Han Weng Chairman, Managing
Director
Co-founder and a major shareholder
With Yinson since 1984
Lim Han Joeh Executive Director With Yinson since 1984
Bachelor, Civil Engineering, Monash University, Australia
Bah Kim Lian Executive Director Co founder, spouse of Lim Han Weng
With Yinson since 1984
Responsible for group customer services
Dato‟ Adi Azmari bin BK Koya
Moideen Kutty
Non-Executive Director 28-year civil engineering veteran, with a career spanning both the public &
private sectors
M. IT in Business, Lincolnshire & Humberside University
Bah Koon Chye Executive Director Joined Yinson in 1989
MBA, Strathclyde University, UK
Kam Chai Hong Independent Non-
Executive Director
39 years experience in auditing
ACCA, MIA
Tuan Haji Hassan bin Ibrahim Independent Non-Executive Director
30 years of legal practice
LLB, Lincoln‟s Inn, UK, BA, History, UM, KL
Lim Chern Yuan Executive Director Joined Yinson in 2005
Bachelor of Commerce, Melbourne University, Australia
Source: Company
Yinson Holdings
21 March 2012 Page 13 of 16
INCOME STATEMENT (RM m) BALANCE SHEET (RM m)
FY Jan 2011A 2012F 2013F 2014F FY Jan 2011A 2012F 2013F 2014F
Revenue 640.8 672.8 651.9 668.0 Fixed Assets 127.2 139.6 508.6 479.3
EBITDA 39.0 49.4 64.2 97.1 Other LT Assets 11.2 56.5 23.5 23.5
Depreciation & Amortisation (7.6) (8.7) (15.1) (32.4) Cash/ST Investments 9.1 38.2 61.1 80.9
Operating Profit (EBIT) 31.4 40.6 49.1 64.8 Other Current Assets 237.6 275.1 241.8 230.4
Interest (Exp)/Inc (7.8) (9.1) (13.7) (17.2) Total Assets 385.1 509.3 834.9 814.2
Associates 0.0 0.0 0.0 0.0
One-offs 1.7 1.2 0.0 0.0 ST Debt 143.9 148.2 146.7 145.2
Pre-Tax Profit 25.0 32.5 37.0 50.3 Other Current Liabilities 70.5 45.2 49.8 49.2
Tax (6.8) (6.5) (4.1) (2.4) LT Debt 46.0 75.1 368.2 306.2
Minority Interest (0.3) (0.3) 1.6 2.7 Other LT Liabilities 2.7 2.8 2.9 3.1
Net Profit 18.5 26.2 31.3 45.1 Minority Interest 0.0 (0.1) 1.5 4.3
Recurring Net Profit 16.8 25.0 31.3 45.1 Shareholders' Equity 121.9 238.0 265.8 306.2
Total Liabilities-Capital 385.1 509.3 834.9 814.2
Revenue Growth % 36.3% 5.0% (3.1)% 2.5%
EBITDA Growth (%) 76.6% 26.6% 30.1% 51.2% Share Capital (m) 68.5 188.4 188.4 188.4
EBIT Growth (%) 116.8% 29.4% 20.8% 32.0% Gross Debt/(Cash) 190.0 223.3 514.9 451.5
Net Profit Growth (%) 133.2% 41.5% 19.3% 44.3% Net Debt/(Cash) 180.8 185.1 453.8 370.5
Recurring Net Profit Growth (%) 137.6% 48.8% 24.9% 44.3% Working Capital 32.3 119.8 106.4 116.9
Tax Rate % 27.0% 20.1% 11.1% 4.8%
CASH FLOW (RM m) RATES & RATIOS
FY Jan 2011A 2012F 2013F 2014F FY Jan 2011A 2012F 2013F 2014F
Profit before taxation 25.0 32.5 37.0 50.3 EBITDA Margin % 6.1% 7.3% 9.9% 14.5%
Depreciation 7.6 8.7 15.1 32.4 Op. Profit Margin % 4.9% 6.0% 7.5% 9.7%
Net interest receipts/(payments) (7.8) (9.1) (13.7) (17.2) Net Profit Margin % 2.9% 3.9% 4.8% 6.8%
Working capital change (42.9) (62.7) 37.8 10.8 ROE % 16.3% 14.6% 12.4% 15.8%
Cash tax paid (6.8) (6.5) (4.1) (2.4) ROA % 5.9% 5.9% 4.7% 5.5%
Others (incl'd exceptional items) 8.2 18.2 27.4 34.5 Net Margin Ex. El % 2.6% 3.7% 4.8% 6.8%
Cash flow from operations (16.7) (18.9) 99.6 108.2 Dividend Cover (x) 13.1 5.6 6.6 9.6
Capex (19.9) (21.7) (384.0) (3.0) Interest Cover (x) (4.0) (4.5) (3.6) (3.8)
Disposal/(purchase) 0.0 0.0 0.0 0.0 Asset Turnover (x) 1.7 1.3 0.8 0.8
Others 1.2 (47.0) 33.0 0.0 Asset/Debt (x) 2.0 2.3 1.6 1.8
Cash flow from investing (18.7) (68.7) (351.0) (3.0) Debtors Turn (days) 110.5 136.8 142.9 127.2
Debt raised/(repaid) 41.5 33.4 291.6 (63.4) Creditors Turn (days) 37.4 46.4 58.0 61.2
Equity raised/(repaid) 0.0 96.0 0.0 0.0 Inventory Turn (days) 0.4 0.3 0.3 0.3
Dividends (paid) (1.4) (3.5) (3.5) (4.7) Net Gearing % 1.5 0.8 1.7 1.2
Interest payments (7.8) (9.1) (13.7) (17.2) Debt/ EBITDA (x) 4.9 4.5 8.0 4.6
Others 7.9 0.0 0.0 0.0 Debt/ Market Cap (x) 0.6 0.7 1.6 1.4
Cash flow from financing 40.2 116.7 274.3 (85.4)
Change in cash 4.9 29.0 22.9 19.9
Sources: Company, Maybank-IB
Yinson Holdings
21 March 2012 Page 14 of 16
ANALYSTS’ COVERAGE / RESEARCH OFFICES
MALAYSIA WONG Chew Hann, CA Head of Research
(603) 2297 8686 [email protected] Strategy Construction & Infrastructure Desmond CH’NG, ACA
(603) 2297 8680 [email protected] Banking - Regional LIAW Thong Jung
(603) 2297 8688 [email protected] Oil & Gas Automotive Shipping ONG Chee Ting
(603) 2297 8678 [email protected] Plantations Mohshin AZIZ
(603) 2297 8692 [email protected] Aviation Petrochem Power YIN Shao Yang, CPA
(603) 2297 8916 [email protected] Gaming – Regional
Media Power WONG Wei Sum, CFA (603) 2297 8679 [email protected] Property & REITs LEE Yen Ling
(603) 2297 8691 [email protected] Building Materials Manufacturing Technology LEE Cheng Hooi Head of Retail
[email protected] Technicals
HONG KONG / CHINA Edward FUNG Head of Research (852) 2268 0632 [email protected] Construction Ivan CHEUNG
(852) 2268 0634 [email protected] Property Industrial Ivan LI
(852) 2268 0641 [email protected] Banking & Finance Jacqueline KO
(852) 2268 0633 [email protected] Consumer Staples Andy POON
(852) 2268 0645 [email protected] Telecom & equipment Samantha KWONG (852) 2268 0640 [email protected] Consumer Discretionaries Alex YEUNG
(852) 2268 0636 [email protected] Industrial Catherine CHAN
(852) 2268 0631 [email protected] Cement
INDIA Jigar SHAH Head of Research
(91) 22 6623 2601 [email protected] Oil & Gas Automobile Cement Anubhav GUPTA
(91) 22 6623 2605 [email protected] Metal & Mining Capital goods Property Haripreet BATRA (91) 226623 2606 [email protected] Software Media Ganesh RAM (91) 226623 2607 [email protected] Telecom Contractor Gagan KWATRA
(91 )226623 2612 [email protected]
Small Cap
SINGAPORE Stephanie WONG Head of Research
(65) 6432 1451 [email protected] Strategy Small & Mid Caps Gregory YAP
(65) 6432 1450 [email protected] Technology & Manufacturing Telcos - Regional Rohan SUPPIAH
(65) 6432 1455 [email protected] Airlines Marine & Offshore Wilson LIEW
(65) 6432 1454 [email protected] Hotel & Resort Property & Construction Anni KUM
(65) 6432 1470 [email protected] Conglomerates REITs James KOH
(65) 6432 1431 [email protected] Logistics Resources Small/ Mid cap Eric ONG (65) 6432 1857 [email protected] Marine & Offshore Transportation Energy OOI Yi Tung
(65) 6433 5712 [email protected] Property & Construction YEAK Chee Keong, CFA (65) 6433 5730 [email protected] Retail & Consumer Engineering Infrastructure Alison FOK
(65) 6433 5745 [email protected] Services Bernard CHIN (65) 6433 5726 [email protected] Conglomerates Industrials
INDONESIA Katarina SETIAWAN Head of Research
(62) 21 2557 1125 [email protected] Consumer Strategy Telcos Lucky ARIESANDI, CFA (62) 21 2557 1127 [email protected] Base metals Coal Heavy Equipment Oil & Gas Rahmi MARINA
(62) 21 2557 1128 [email protected] Banking Multifinance Pandu ANUGRAH
(62) 21 2557 1137 [email protected] Auto Heavy equipment Plantation Toll road Adi N. WICAKSONO
(62) 21 2557 1130 [email protected] Generalist Anthony YUNUS (62) 21 2557 1134 [email protected] Cement Infrastructure Property Arwani PRANADJAYA
(62) 21 2557 1129 [email protected] Technicals
REGIONAL WONG Chew Hann, CA Regional Head of Research
(603) 2297 8686 [email protected] THAM Mun Hon
(852) 2268 0630 [email protected] Regional Strategist ONG Seng Yeow
(852) 2268 0644 [email protected] Regional Products & Planning
THAILAND Mayuree CHOWVIKRAN Head of Research
(66)-2658-6300 ext 1440 [email protected] Strategy Maria BRENDA SANCHEZ LAPIZ Co-Head of Research Dir (66)-2257-0250 | (66)-2658-6300 ext 1399 [email protected] PEERASUB
(66)-2658-6300 ext 1430 [email protected] Media Commerce Sutthichai KUMWORACHAI
(66)-2658-6300 ext 1400 [email protected] Energy Petrochem Termporn TANTIVIVAT
(66)-2658-6300 ext 1520 [email protected] Property Woraphon WIROONSRI
(66)-2658-6300 ext 1560 [email protected] Banking & Finance Jaroonpan WATTANAWONG
(66)-2658-6300 ext 1404 [email protected] Transportation Small cap. Suchot THIRAWANNARAT
(66)-2658-6300 ext 1550 [email protected] Automotive Construction Materials Soft commodity
PHILIPPINES Luz LORENZO Head of Research
+63 2 849 8836 [email protected] Strategy Laura DY-LIACCO
(63) 2 849 8840 [email protected] Utilities Conglomerates Telcos Lovell SARREAL
(63) 2 849 8841 [email protected] Consumer Media Cement Mining Kenneth NERECINA
(63) 2 849 8839 [email protected] Conglomerates Property Ports/ Logistics Katherine TAN
(63) 2 849 8843 [email protected] Banks Construction
VIETNAM Michael Kokalari, CFA Head of Research
+84 838 38 66 47 [email protected] Strategy Nguyen Thi Ngan Tuyen
+84 844 55 58 88 x 8081 [email protected] Confectionary and Beverage Oil and Gas Ngo Bich Van
+84 844 55 58 88 x 8084 [email protected] Banking Insurance Nguyen Quang Duy
+84 844 55 58 88 x 8082 [email protected] Resources Property Trinh Thi Ngoc Diep
+84 444 55 58 88 x 8208 [email protected] Property & Construction Power Dang Thi Kim Thoa
+84 844 55 58 88 x 8083 [email protected] Consumer & Services Technology & Telecom Nguyen Trung Hoa
+84 844 55 58 88 Pharmaceutical Fishery
ECONOMICS Suhaimi ILIAS Chief Economist
(603) 2297 8682 [email protected] Singapore | Malaysia Luz LORENZO Economist
(63) 2 849 8836 [email protected] Philippines | Indonesia
Yinson Holdings
21 March 2012 Page 15 of 16
APPENDIX 1
Definition of Ratings
Maybank Investment Bank Research uses the following rating system:
BUY Total return is expected to be above 15% in the next 12 months
HOLD Total return is expected to be between -15% to 15% in the next 12 months
SELL Total return is expected to be below -15% in the next 12 months
Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are
only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not
carry investment ratings as we do not actively follow developments in these companies.
Some common terms abbreviated in this report (where they appear):
Adex = Advertising Expenditure FCF = Free Cashflow PE = Price Earnings
BV = Book Value FV = Fair Value PEG = PE Ratio To Growth
CAGR = Compounded Annual Growth Rate FY = Financial Year PER = PE Ratio
Capex = Capital Expenditure FYE = Financial Year End QoQ = Quarter-On-Quarter
CY = Calendar Year MoM = Month-On-Month ROA = Return On Asset
DCF = Discounted Cashflow NAV = Net Asset Value ROE = Return On Equity DPS = Dividend Per Share
NTA = Net Tangible Asset ROSF = Return On Shareholders‟ Funds
EBIT = Earnings Before Interest And Tax P = Price WACC = Weighted Average Cost Of Capital
EBITDA = EBIT, Depreciation And Amortisation P.A. = Per Annum YoY = Year-On-Year
EPS = Earnings Per Share PAT = Profit After Tax YTD = Year-To-Date
EV = Enterprise Value PBT = Profit Before Tax
Disclaimer
This report is for information purposes only and under no circumstances is it to be considered or intended as an offer to sell or a solicitation
of an offer to buy the securities referred to herein. Investors should note that income from such securities, if any, may fluctuate and that each
security‟s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental
ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on
price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis. Accordingly, investors may
receive back less than originally invested. Past performance is not necessarily a guide to future performance. This report is not intended to
provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the
particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding
the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently
verified by Maybank Investment Bank Berhad and consequently no representation is made as to the accuracy or completeness of this report
by Maybank Investment Bank Berhad and it should not be relied upon as such. Accordingly, no liability can be accepted for any direct,
indirect or consequential losses or damages that may arise from the use or reliance of this report. Maybank Investment Bank Berhad, its
affiliates and related companies and their officers, directors, associates, connected parties and/or employees may from time to time have
positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an
underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and
other services for or relating to those companies. Any information, opinions or recommendations contained herein are subject to change at
any time, without prior notice.
This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”,
“believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”,
“should”, “could” or “might” occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions
made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ
materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-
looking statements. Maybank Investment Bank Berhad expressly disclaims any obligation to update or revise any such forward looking
statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrenc e of unanticipated
events.
This report is prepared for the use of Maybank Investment Bank Berhad's clients and may not be reproduced, altered in any way, transmitted
to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of Maybank
Investment Bank Berhad and Maybank Investment Bank Berhad accepts no liability whatsoever for the actions of third parties in this respect.
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.
Yinson Holdings
21 March 2012 Page 16 of 16
Malaysia
Maybank Investment Bank Berhad (A Participating Organisation of Bursa Malaysia Securities Berhad) 33rd Floor, Menara Maybank,
100 Jalan Tun Perak, 50050 Kuala Lumpur Tel: (603) 2059 1888; Fax: (603) 2078 4194
Singapore
Maybank Kim Eng Securities Pte Ltd Maybank Kim Eng Research Pte Ltd 9 Temasek Boulevard #39-00 Suntec Tower 2
Singapore 038989 Tel: (65) 6336 9090 Fax: (65) 6339 6003
London
Maybank Kim Eng Securities (London) Ltd 6/F, 20 St. Dunstan’s Hill London EC3R 8HY, UK
Tel: (44) 20 7621 9298 Dealers’ Tel: (44) 20 7626 2828 Fax: (44) 20 7283 6674
New York
Maybank Kim Eng Securities USA Inc 777 Third Avenue, 21st Floor New York, NY 10017, U.S.A.
Tel: (212) 688 8886 Fax: (212) 688 3500
Stockbroking Business: Level 8, Tower C, Dataran Maybank,
No.1, Jalan Maarof 59000 Kuala Lumpur Tel: (603) 2297 8888 Fax: (603) 2282 5136
Hong Kong
Kim Eng Securities (HK) Ltd
Level 30, Three Pacific Place, 1 Queen’s Road East, Hong Kong
Tel: (852) 2268 0800 Fax: (852) 2877 0104
Indonesia
PT Kim Eng Securities
Plaza Bapindo Citibank Tower 17th Floor Jl Jend. Sudirman Kav. 54-55 Jakarta 12190, Indonesia
Tel: (62) 21 2557 1188 Fax: (62) 21 2557 1189
India
Kim Eng Securities India Pvt Ltd
2nd Floor, The International 16, Maharishi Karve Road, Churchgate Station, Mumbai City - 400 020, India
Tel: (91).22.6623.2600 Fax: (91).22.6623.2604
Philippines
Maybank ATR Kim Eng Securities Inc. 17/F, Tower One & Exchange Plaza
Ayala Triangle, Ayala Avenue Makati City, Philippines 1200 Tel: (63) 2 849 8888
Fax: (63) 2 848 5738
Thailand
Maybank Kim Eng Securities (Thailand) Public Company Limited
999/9 The Offices at Central World, 20th - 21st Floor, Rama 1 Road Pathumwan, Bangkok 10330, Thailand
Tel: (66) 2 658 6817 (sales) Tel: (66) 2 658 6801 (research)
Vietnam
In association with
Kim Eng Vietnam Securities Company 1st Floor, 255 Tran Hung Dao St. District 1
Ho Chi Minh City, Vietnam Tel : (84) 838 38 66 36 Fax : (84) 838 38 66 39
Saudi Arabia
In association with
Anfaal Capital Villa 47, Tujjar Jeddah Prince Mohammed bin Abdulaziz Street P.O. Box 126575
Jeddah 21352 Tel: (966) 2 6068686 Fax: (966) 26068787
South Asia Sales Trading
Connie TAN [email protected] Tel: (65) 6333 5775 US Toll Free: 1 866 406 7447
North Asia Sales Trading
Eddie LAU [email protected] Tel: (852) 2268 0800 US Toll Free: 1 866 598 2267
www.maybank-ke.com | www.kimengresearch.com.sg
APPENDIX 1
Additional Disclaimer (for purpose of distribution in Singapore) This report has been produced as of the date hereof and the information herein maybe subject to change. Kim Eng Research Pte Ltd ("KERPL") in Singapore has no obligation to update such information for any recipient. Recipients of this report are to contact KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law. As of 21 March 2012, KERPL does not have an interest in the said company/companies.
Additional Disclaimer (for purpose of distribution in the United States) This research report prepared by Maybank Investment Bank Berhad is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Kim Eng Securities USA, a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Kim Eng Securities USA in the US shall be borne by Kim Eng. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the US. This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. This report is not directed at you if Kim Eng Securities is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Kim Eng Securities is permitted to provide research material concerning investments to you under relevant legislation and regulations. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply i f the reader is receiving or accessing this report in or from other than Malaysia. As of 21 March 2012, Maybank Investment Bank Berhad and the covering analyst do not have any interest in any companies recommended in this Market themes report. Analyst Certification: The views expressed in this research report accurately reflect the analyst's personal views about any and all of the subject securities or issuers; and no part of
the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.
Additional Disclaimer (for purpose of distribution in the United Kingdom) This document is being distributed by Kim Eng Securities Limited, which is authorised and regulated by the Financial Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.
Published / Printed by
Maybank Investment Bank Berhad (15938-H)
(A Participating Organisation of Bursa Malaysia Securities Berhad)
33rd Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur Tel: (603) 2059 1888; Fax: (603) 2078 4194
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