MICA (P) 057/11/2011 Ref No: SGMN2012_0153 1 of 16

Morning Note

Phillip Securities Research Pte Ltd Singapore

8 AUGUST 2012

Fundamental Call

SATS Ltd – Company Visit (Derrick Heng) Recommendation: Neutral Previous close: S$2.47 Fair value: S$2.65 New cruise centre contribution immaterial in near term Highly variable cost structure Dividend yields of 5-6% remains attractive Maintain Neutral with TP of S$2.65 UOB Ltd - Results (Ken Ang) Recommendation: Reduce Previous close: S$19.95 Fair value: S$17.85

2Q12 results beat expectations on non-recurring gains from sale of investments, stronger fees and commission income earnings, offset by

weaker net interest income. Maintain “Reduce” rating with new target price of S$17.85, based on P/B multiple of 1.25X.

Source: Phillip Securities Research Pte Ltd

Market & Portfolio Outlook - STI: -0.13% to 3067.7 - MSCI SE Asia: -0.34% to 820.9 - FTSE Asia Pac ex-Japan: +0.27% to 573.5 - Euro Stoxx 50: +1.71% to 2440.2 - S&P500: +0.51% to 1401.4

MARKET OUTLOOK:-

Equity upside risk remains high as back-door QE from the ECB gains traction.

Chancellor Merkel of Germany has given her stamp of approval regarding the ECB's plan for bond buying. To reiterate what the market is positively anticipating from Europe - the plan so far is that the ECB will buy Spanish and Italian bonds on the secondary markets so long as the EFSF/ESM buys the bonds on the primary markets and imposes conditions with them. Spain and Italy are already undergoing tough budget reform so meeting conditions will not be a problem. As the ESM has 500b euros, and the EFSF has 148b left in the kitty, if ECB secondary market purchases will match the primary, the total buying would be over 1tr euros. A substantial amount enough to crush the shorts.

Underlying economic fundamentals remain precarious as globally we seem to have entered a synchronized slowdown.

Dividend paying stocks with strong business moats are likely spillover beneficiaries in the global search for yield (see Portfolio Outlook). Our SG Sector Strategist likes defensives (SCI, Comfort, Singtel), and is sector overweight Aviation Services (SIAEC, STE, SATS), and the REITS.

PORTFOLIO OUTLOOK:

Imminent backdoor QE from the ECB is likely to spur stocks higher, short term traders can take a bet. But from a medium-longer term portfolio stance we are neutral at best for stocks till 1q13 as we think absolute returns could prove fleeting due to global slowdown and fiscal uncertainty in the US. But within the stock space we prefer & Overweight ASEAN markets - the KLCI, JCI, SETI, PSEI, STI - to be relatively more resilient. For the first 4, domestic demand and pro-growth govt policy counteracts a weak external environment. As for the STI: +60% earnings exposure to ASEAN & Emerging Markets, high dividend yields in strong business moats, and the SGD's relative safe haven status, makes the STI an attractive buy in these yield starved times.

Between the asset classes, we overweight Fixed Income (ETF tickers in brackets) over Stocks, Commodities, given our global slowdown, receding inflation outlook. A repressed rate environment, is inducing a global search for yield beyond the traditional safe havens of Treasuries (TLT: NYSE), Bunds, Gilts, SGS (A35:SGX). Portfolios hard pressed for yield will likely have to explore beyond the traditional safe havens, thus within the bond space we're overweight dollar denominated EM sovereigns (EMB:NYSE), dollar denominated Asian Sovereigns & Corporates (N6M:SGX and O9P:SGX), and US Corporate Debt (VCLT:NYSE).

REPORTS:

Global Macro, Asset Strategy: 26 July

Singapore Sector Strategy: 1 Aug

Singapore Sector Reports: Banks / Transport / Telcos / Property / REITS / Thematic

Regional Strategy: Indon, 17 July / HK, 22 June / Thai, 18 June / S'pore, 8 June / M'sia, 30 May / China, 24 May

Source: Phillip Securities Research Pte Ltd

Morning Note 8 August 2012

2 of 17

Macro Data MACRO DATA: In Australia, RBA kept benchmark interest rate unchanged at 3.5% citing a domestic expansion that’s weathering a global slowdown. While Europe’s fiscal crisis is weighing on global growth and Chinese demand for Australian commodities, the government’s 75 basis points of cuts in May and June has helped boost retail sales and housing in an economy driven by resource investment. In Taiwan, export slumped by 11.6% y-y in July, after the 3.2% y-y drop in June, while the market was predicting a 7.7% y-y contraction. Import fell by 3.2% y-y, after the 8.4% y-y drop in June. On m-m basis, export rose by 2.0% in July, after the 6.6% m-m drop in June, and import advanced 9.9% m-m in July, reversing the 8.5% m-m drop in June. Direct trade with China contracted 10.5% y-y in July, marking a y-y drop for the fifth consecutive month, after the 1.6% y-y contraction in June. Overseas sales, which make up the equivalent of two-thirds of the island’s economy, have been hurt by Europe’s debt crisis and a growth slowdown in China, the island’s largest trading partner. Inflation accelerated last month to the fastest in more than three years, reducing scope for the central bank to support expansion even as the economy contracted in the second quarter. In Germany, factory orders contracted 1.7% m-m sa in June, reversing from a 0.7% gain in the preceding month. The slump in factory orders was largely due to a decline in contracts -domestically as well as elsewhere in the eurozone. As we have guided previously in our MN commentary, core economies in the bloc (such as Germany and) are not immune from the ongoing EU sovereign debt crisis. Looking ahead, we opine that sluggish domestic as well as external demand -along with weak economic sentiment- are likely to continue to weigh on Germany’s growth. In the UK, manufacturing output contracted sharply by 4.3% y-y in June owing to additional public holidays for the for the Queen’s Jubilee celebrations. While the pace of decline was faster than that registered in the preceding month (-1.8%), the contraction was still smaller-than-expected, increasing the odds of a slight upward revision to 2Q GDP. Italy remains mired in a recession. GDP contracted for the fourth consecutive quarter in 2Q12 by 0.7% q-q sa, following a decline of 0.8% in the preceding quarter. Industrial production also decline by 1.4% m-m sa in June, compared to mild growth of 1.0% in the preceding month. The deepening recession (which also adversely affects employment & consumption) makes it difficult for Monti to reassure markets of Italy’s ability to trim its budget deficit.

Source: Phillip Securities Research Pte Ltd

Morning Note 8 August 2012

3 of 17

Source: Bloomberg

STI - Index Members

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Morning Note 8 August 2012

4 of 17

Company Results

S/N Company Name Q/HY/FY Currency,

Units

Revenue Net Profit

Current Previous Change

(%) Current Previous

Change (%)

1 ITE ELECTRIC CO LTD HY S$'000 9,520 7,552 26 5,273 1,221 332

2 ASPIAL CORPORATION LIMITED

HY S$’000 200,097 186,081 8 25,045 19,888 26

3 BENG KUANG MARINE LIMITED

2Q S$’000 27,107 40,826 (34) 160 1,926 (87)

4 SAKAE HOLDINGS LTD. HY S$’000 47,649 43,101 10.6 2,287 1,294 76.7

5 CHALLENGER TECHNOLOGIES LTD

2Q S$’000 86,430 82,132 5 3,435 3,791 (9)

6 HOCK LIAN SENG HOLDINGS LTD

HY S$’000 51,401 80,406 (36.1) 9,043 9,574 (5.5)

7 OVERSEAS UNION ENTERPRISE LTD

2Q S$’000 96,664 72,266 33.8 22,811 20,088 13.6

8 EUNETWORKS GROUP LIMITED

2Q €’m 23.2 14.6 59 (10.2) (6.5) N.M.

9 HEETON HOLDINGS LIMITED

2Q S$’m 11.1 6.1 81.5 5.2 5.8 (10.4)

10 TECKWAH INDUSTRIAL CORP LTD

2Q S$'000 45,034 41,452 8.6 2,986 2,646 12.8

11 CHINA KUNDA TECH HOLDINGS LTD

2Q HK$'000 72,825 78,175 (6.8) (4,519) (6,013) N.M.

12 CWT LIMITED 2Q S$'000 1,042,911 229,889 354 19,855 10,583 88

13 HOTUNG INVESTMENT HLDGS LTD

2Q NT$'000 1,556 1,109 40 64,442 107,415 (40)

14 KLW HOLDINGS LTD HY S$’000 22,885 28,441 (19.5) 654 1,697 (61.5)

15 WEE HUR HOLDINGS LTD. HY S$’000 127,961 84,308 52 5,674 2,889 96

16 MEMTECH INTERNATIONAL LTD

2Q US$'000 25,221 37,773 (33.2) (3,013) 1,951 N.M.

17 ISDN HOLDINGS LIMITED 2Q S$’000 39,951 48,528 (17.7) 2,380 2,557 (6.9)

18 JIUTIAN CHEMICAL GROUP LIMITED

2Q RMB'000 218,902 246,423 (11) 1,428 (3,733) N.M.

19 UNITED OVERSEAS BANK LTD

HY $'m 3,239 2,860 13.2 1,401 1,248 12.3

20 CHINA HAIDA LTD. HY RMB'000 151,786 166,814 (9) (1,256) 2,681 (146.8)

21 ANNAIK LIMITED HY S$’000 41,201 33,752 22.07 740 1,162 (36.32)

22 ASIA ENTERPRISES HOLDING LTD

2Q S$'000 43,625 46,940 (7) 1,898 3,230 (41)

23 DMX TECHNOLOGIES GROUP LTD

2Q US$'000 91,123 80,536 13.15 4,924 4,399 11.93

Morning Note 8 August 2012

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Company Highlights

Fraser and Neave Limited announced that it has received an unsolicited offer from KPGL today to acquire the Company’s direct interest in APBL comprising 18,753,887 APBL shares at the price of S$55.00 for each share in APBL (the “Offer”).The Offer is subject to, among other things, the entry into of definitive legal documentation between the Company and KPGL, and will lapse at 5:00 pm on 16 August 2012. The Board of the Company will review and evaluate the Offer. Shareholders should note that there is no certainty at the time of this announcement that any transaction or agreement will be entered into in respect of the Offer. The Company will update shareholders and make appropriate announcements at the relevant time. In the meantime, shareholders are advised to refrain from taking any action in relation to their shares of the Company which may be prejudicial to their interests, and to exercise caution when dealing in the shares of the Company. (Closing Price: $8.280, 0.730%) Courage Marine Group announced that its indirect wholly-owned subsidiary, Cape Ore, is acquiring a vessel for US$6.65 million. The capesize vessel has a carrying capacity of approximately 151,688 dwt. Its flag state is Hong Kong and was inspected and classified by American Bureau of Shipping for purpose of safety classification society. It is to be delivered between August 24, 2012 and September 30, 2012. Cape Ore has the option to cancel the agreement if the delivery is not made by end September. The group said the acquisition is part of its fleet renewal plan, and the current market situation is suitable for it to acquire a younger vessel. (Closing Price: $0.078, -2.5%) Compact Metal Industries Ltd announced its wholly-owned subsidiary, PT Cakra Aluminium Industries, is selling its assets for US$3.75 million. PT Cakra is in the process of closing down its operations and the assets disposed of includes eight plots of freehold land located in Indonesia, and equipment and machinery used in production. A valuation report dated January 3, 2012 valued the assets at US$2.75 million. The net loss on the disposal will be approximately S$0.5 million based on the book value of the assets and after including certain expenses such as taxes and fees which are related to the disposal. (Closing Price: $0.006, +20.000%) Lian Beng Group announced it is adding a third block to its originally-planned two-block dormitory project at Mandai, increasing the planned capacity by 32 per cent to 6,290 beds. "The increased capacity will bring a higher future recurring income from our dormitory business," said executive director, Ong Pang Aik. The group's 55 per cent joint venture with the Centurion Corporation Limited, Lian Beng-Centurion (Mandai) Pte Ltd, has been granted provisional permission from the Urban Redevelopment Authority of Singapore to develop the third dormitory block on the remaining plot of land at its Mandai Estate development. The free-hold land parcel measuring about 18,700 sqm was originally slated to be divided into three plots with the first two plots for the development of a 141-unit 10-storey ramp-up industrial building, M-Space and a 4750-bed workers' dormitory. (Closing Price: $0.390, +1.266%) Wilmar International Ltd is building two large wheat flour mills in Indonesia, a company executive said, as the firm looks to tap into rising demand for noodles, bread and convenience foods in Asia's top wheat importer. Wilmar's Indonesian unit, PT Wilmar Nabati Indonesia, is building two wheat flour projects in Gresik in east Java with a joint capacity of 1 million tonnes per year, Hendri Saksti, the subsidiary's head of operations, said late on Monday. (Closing Price: $3.280, +0.306%) Source: SGX Masnet, The Business Times

Morning Note 8 August 2012

6 of 17

FSSTI 3,067.74 -0.13% 13,168.60 +0.39%

12.28 20,072.55 +0.37%

82.21 -0.07% 1,612.20 -0.05%

93.67 +1.59% 1.628 +0.06%

Source: Bloomberg

DJI

Crude oil US Treasury 10yr Yield

HSIFSSTI (P/E)

Dollar Index Gold

2500

2700

2900

3100

3300

Aug-11

Sep-11

Oct-1

1

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

10500

11000

11500

12000

12500

13000

13500

Aug-11

Sep-11

Oct-1

1

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

15500

17500

19500

21500

23500

Aug-11

Sep-11

Oct-1

1

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

6

7

8

9

10

11

12

13

Aug-11

Sep-11

Oct-1

1

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

72

74

76

78

80

82

84

86

Aug-1

1

Sep-1

1

Oct-1

1

Nov-1

1

Dec-1

1

Jan-1

2

Feb

-12

Ma

r-12

Apr-1

2

Ma

y-12

Jun-1

2

Jul-1

2

1200

1350

1500

1650

1800

1950

Aug-11

Sep-11

Oct-1

1

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

70

80

90

100

110

120

Aug

-11

Sep

-11

Oct-1

1

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

1.5

2

2.5

Aug-11

Sep-11

Oct-1

1

Nov-11

Dec-11

Jan-1

2

Feb

-12

Mar-1

2

Apr-1

2

May-1

2

Jun-1

2

Jul-1

2

Morning Note 8 August 2012

7 of 17

Phillip Securities Research - Singapore Stocks Coverage

Company Analyst RatingTarget Price

(S$)

Current

Price (S$)

Difference to

Target Price

(%)

DBS GROUP HOLDINGS LTD Ken Ang Accumulate M 15.100 14.830 1.8%

OVERSEA-CHINESE BANKING CORP Ken Ang Reduce D 8.200 9.470 -13.4%

UNITED OVERSEAS BANK LTD Ken Ang Reduce M 17.900 19.950 -10.3%

GENTING SINGAPORE PLC Magdalene Choong Buy U 1.750 1.305 34.1%

SINGAPORE EXCHANGE LTD Ken Ang Accumulate N 6.790 6.810 -0.3%

COMFORTDELGRO CORP LTD Derrick Heng Buy M 1.650 1.640 0.6%

SMRT CORP LTD Derrick Heng Sell M 1.350 1.650 -18.2%

NEPTUNE ORIENT LINES LTD Derrick Heng Neutral U 1.190 1.200 -0.8%

SINGAPORE AIRLINES LTD Derrick Heng Buy U 13.300 10.830 22.8%

TIGER AIRWAYS HOLDINGS LTD Derrick Heng Reduce M 0.550 0.710 -22.5%

M1 LTD Ken Ang Reduce M 2.380 2.550 -6.7%

SINGAPORE TELECOM LTD Derrick Heng Neutral D 3.310 3.470 -4.6%

STARHUB LTD Derrick Heng Neutral M 2.940 3.740 -21.4%

SIA ENGINEERING CO LTD Derrick Heng Buy M 5.000 4.130 21.1%

SINGAPORE TECH ENGINEERING Derrick Heng Accumulate M 3.370 3.250 3.7%

SATS LTD Derrick Heng Neutral M 2.650 2.470 7.3%

COSCO CORP SINGAPORE LTD Phillip Research Team Reduce U 1.000 0.990 1.0%

SEMBCORP MARINE LTD Phillip Research Team Buy M 6.100 4.910 24.2%

SEMBCORP INDUSTRIES LTD Phillip Research Team Buy M 6.580 5.310 23.9%

KEPPEL CORP LTD Phillip Research Team Accumulate M 11.680 11.300 3.4%

GOLDEN AGRI-RESOURCES LTD Phillip Research Team Accumulate M 0.770 0.650 18.5%

WILMAR INTERNATIONAL LTD Phillip Research Team Buy U 4.370 3.280 33.2%

CHINA SUNSINE CHEMICAL HLDGS Lee Kok Joo Not Rated D - 0.250 -

FORELAND FABRICTECH HOLDINGS Lee Kok Joo Reduce D 0.080 0.053 50.9%

SINO GRANDNESS FOOD INDUSTRY Lee Kok Joo Accumulate M 0.490 0.455 7.7%

ZIWO HOLDINGS LTD Lee Kok Joo Sell M 0.095 0.088 8.0%

COMBINE WILL INTERNATIONAL H Chan Wai Chee Buy M 1.340 0.695 92.8%

HU AN CABLE HOLDINGS LTD Chan Wai Chee Buy U 0.275 0.137 100.7%

HENGYANG PETROCHEMICAL LOGIS Chan Wai Chee Buy I 0.610 0.225 171.1%

SUNPOWER GROUP LTD Chan Wai Chee Buy M 0.400 0.210 90.5%

STAMFORD LAND CORP LTD Chan Wai Chee Buy I 0.795 0.550 44.5%

CAPITAMALLS ASIA LTD Bryan Go Buy M 1.820 1.685 8.0%

HO BEE INVESTMENT LTD Bryan Go Neutral M 1.430 1.250 14.4%

KEPPEL LAND LTD Bryan Go Neutral M 3.300 3.460 -4.6%

OVERSEAS UNION ENTERPRISE Bryan Go Accumulate M 2.830 2.550 11.0%

SC GLOBAL DEVELOPMENTS LTD Bryan Go Neutral U 1.000 0.965 3.6%

CAPITALAND LTD Bryan Go Accumulate M 3.270 3.060 6.9%

CDL HOSPITALITY TRUSTS Travis Seah Accumulate D 2.000 2.000 0.0%

PARKWAYLIFE REAL ESTATE Travis Seah Neutral D 2.010 2.030 -1.0%

SABANA SHARIAH COMP IND REIT Travis Seah Accumulate D 1.040 1.015 2.5%

US Stocks Coverage

Company Analyst RatingTarget Price

(US$)

Current

Price (US$)

Upside to

Target Price

(%)

BANK OF AMERICA CORP Magdalene Choong Neutral M - 7.670 -

CITIGROUP INC Magdalene Choong Neutral D - 28.890 -

LAS VEGAS SANDS CORP Magdalene Choong Neutral D 40.000 40.460 -1.1%

WYNN RESORTS LTD Magdalene Choong Neutral D - 102.640 -

MGM RESORTS INTERNATIONAL Magdalene Choong Accumulate D 12.900 10.080 28.0%

Source: Phillip Securities Research Pte Ltd

Morning Note 8 August 2012

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Director / Substantial Shareholders’ Transactions

Company Substantial Shareholder / Director From (%) To (%)

GKE CORPORATION LIMITED Kwan Chee Seng 5.31 5.53

LIONGOLD CORP LTD Market Vectors Junior Gold Miners ETF 4.98 5.02

AMTEK ENGINEERING LTD Metcomp Group Holdings 28.2216 28.2154

MAPLETREE LOGISTICS TRUST Temasek Holdings (Private) Limited 41.00 40.99

EASTERN HOLDINGS LTD JANET LIM 81.672 81.677

EU YAN SANG INTERNATIONAL LTD DBS Group Holdings Ltd ("DBSH") 0 17.78

GSH CORPORATION LIMITED Rega Investments Limited 11.9 11.2

SIA ENGINEERING CO LTD Temasek Holdings (Private) Limited ("Temasek") 79.98 78.99

PUBLIC BANK BERHAD Employees Provident Fund Board 12.67 12.65

Source: SGX Masnet

Morning Note 8 August 2012

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FTSE ST Breakdown (% Change)

STI -0.13%

-0.53%

0.20%

0.52%

-0.62%-0.41%

-0.82%

-0.59%

-0.51%

-0.74%

-0.07%

-1.36%

0.27%

ST China

ST Real Estate

ST Re Invest Trust

ST Oil & Gas

ST Basic Materials

ST Industrials

ST Consumer Goods

ST Consumer Service

ST Telecommunicate

ST Utilites

ST Financials

ST Technology-0.23%

ST Healthcare

Source: Bloomberg

FTSE ST Market Cap. Breakdown (% Change)

Top Gainers Last Chg

-0.60%

-0.43% 0.33%

ST All Share

ST Fledgling

ST Small Cap

ST Mid Cap

STI

-0.13%

-0.20%

▲JSH 500US$ 35.070 0.770

▲Jardine C&C 48.120 0.330

▲JMH 400US$ 56.380 0.220

Top Losers Last Chg

▼GreatEast 13.560 -0.210

▼CITYDEV 11.800 -0.140

▼StarHub 3.740 -0.100

Top Volume Last Vol

▲IPC Corp 0.153 224,387

▼GoldenAgr 0.725 67,400

▼M Devt 0.009 56,742

TURNOVER (SHARES) 1,564,828,750

TURNOVER (S$) 1,036,185,342

UP 150

DOWN 233

UNCHANGED 408

Source: Bloomberg

Source: SGX

Morning Note 8 August 2012

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Source: Bloomberg

Major World Indices

JCI -0.49% 4,085.58

HSI 0.37% 20,072.55

KLCI -0.51% 1,631.12

NIKKEI 0.88% 8,803.31

KOSPI 0.05% 1,886.80

SET 0.01% 1,208.19

SHCOMP 0.13% 2,157.62

SENSEX 1.08% 17,601.78

ASX 0.44% 4,291.56

FTSE 100 0.56% 5,841.24

DOW 0.39% 13,168.60

S&P 500 0.51% 1,401.35

NASDAQ 0.87% 3,015.86

COLOMBO -0.61% 4,898.22

STI -0.13% 3,067.74

ETF % Change Change Last

DB X-TRACKERS FTSE VIETNAM -0.13 -0.03 23.13

DB X-TRACKERS MSCI INDONE -0.55 -0.08 14.58

DB X-TRACKERS MSCI JAPAN TRN +1.61 +0.56 35.40

DB X-TRACKERS S&P 500 INV DA -0.16 -0.06 36.46

DB X-TRACKERS S&P CNX NIFTY +1.64 +1.59 98.44

ISHARES MSCI INDIA INDEX ETF +2.73 +0.15 5.64

LYXOR ETF CHINA ENTERPRISE +0.39 +0.05 12.82

NIKKO AM SINGAPORE STI ETF -0.32 -0.01 3.12

Source: Bloomberg

Morning Note 8 August 2012

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Commodities % Chg Chg Last Price of S$1 Price of US$1

GOLD SPOT (US$/OZ) -0.05 -0.75 1,612.20 0.7623 1.0565

SILVER SPOT (US$/OZ) -0.28 -0.08 28.14 0.8028 0.9968

WTI Cushing Crude Oil Spot Price (US$/bbl) +1.59 +1.47 93.67 0.6485 1.2418

0.5148 1.5645

0.8053 1.0000

Commodities % Chg Chg Last 5.1290 6.3677

Malaysian Rubber Board Standard (MYR/kg) -1.68 -14.50 849.75 6.2455 7.7554

PALM OIL (MYR/Metric Tonne) -0.95 -27.50 2,854.50 63.4000 78.7000

908.3521 1127.8100

Index % Chg Chg Last 2.4962 3.0986

DOLLAR INDEX SPOT -0.07 -0.06 82.21 25.3463 31.4700

Source: Bloomberg

JAPANESE YEN

KOREAN WON

MALAYSIAN RINGGIT

THAI BAHT

US DOLLAR

CHINA RENMINBI

HONG KONG DOLLAR

CANADIAN DOLLAR

EURO

BRITISH POUND

Currencies

AUSTRALIAN DOLLAR

Commodities & Currencies

Maturity Today Yesterday Last Week Last Month

3 Months 0.08 0.05 0.08 0.05

6 Months 0.12 0.12 0.12 0.13

2 Years 0.26 0.23 0.21 0.27

3 Years 0.36 0.32 0.28 0.35

5 Years 0.70 0.65 0.58 0.64

10 Years 1.63 1.56 1.47 1.55

30 Years 2.72 2.65 2.55 2.66

Yield Spread (10 yrs - 3 mths)

Yield Spread (10 yrs - 2 yrs)

US Treasury Yields

1.55

1.37

Source: Data provided by ValuBond – http://w w w .valubond.com

EX Date Company Type Net Amount Currency Frequency Record Date Payout Date

8/8/2012 ERATAT LIFESTYLE LTD Regular Cash 0.0250 CNY Annual 8/13/2012 8/24/2012

8/8/2012 HIAP TONG CORP LTD Regular Cash 0.0050 SGD Irreg 8/13/2012 9/25/2012

8/8/2012 GP BATTERIES INTL LTD Final 0.0150 SGD Semi-Anl 8/13/2012 8/28/2012

8/8/2012 FABCHEM CHINA LTD Regular Cash 0.0100 SGD Annual 8/13/2012 8/28/2012

8/8/2012 CITYSPRING INFRASTRUCTURE TR Distribution 0.0082 SGD Quarter 8/13/2012 N.A.

8/8/2012 ROYAL DUTCH SHELL PLC-ADR Regular Cash 0.7310 USD Quarter 8/10/2012 9/20/2012

8/8/2012 OVERSEA-CHINESE BANKING CORP Interim 0.1600 SGD Semi-Anl 8/13/2012 8/27/2012

8/8/2012 PARKWAYLIFE REAL ESTATE Distribution 0.0248 SGD Quarter 8/13/2012 N.A.

8/8/2012 HYFLUX LTD Regular Cash 0.0070 SGD Semi-Anl 8/13/2012 8/31/2012

8/8/2012 LIPPO MALLS INDONESIA RETAIL Distribution 0.0079 SGD Quarter 8/13/2012 8/30/2012

8/10/2012 JARDINE CYCLE & CARRIAGE LTD Interim 0.1800 USD Semi-Anl 8/14/2012 9/24/2012

8/10/2012 CEI CONTRACT MANUFACTURING Special Cash 0.0015 SGD Semi-Anl 8/14/2012 8/23/2012

8/13/2012 FISCHER TECH LTD Final 0.0060 SGD Irreg 8/15/2012 8/30/2012

8/13/2012 RAFFLES MEDICAL GROUP LTD Interim 0.0100 SGD Semi-Anl 8/15/2012 8/31/2012

Corporate Action: Dividend

Source: Bloomberg

Morning Note 8 August 2012

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Name Expected Report Date

Perennial China Retail Trust 8/8/2012

Megachem Ltd 8/8/2012

Frencken Group Ltd 8/8/2012

Parkson Retail Asia Ltd 8/8/2012

StarHub Ltd 8/8/2012

Hoe Leong Corp Ltd 8/8/2012

Compact Metal Industries Ltd 8/8/2012

Nordic Group Ltd 8/8/2012

Tye Soon Ltd 8/8/2012

Serial System Ltd 8/8/2012

Del Monte Pacif ic Ltd 8/8/2012

Metal Component Engineering Ltd 8/8/2012

Petra Foods Ltd 8/8/2012

Venture Corp Ltd 8/8/2012

Chip Eng Seng Corp Ltd 8/8/2012

JEP Holdings Ltd 8/8/2012

Hiap Hoe Ltd 8/8/2012

Viking Offshore and Marine Ltd 8/8/2012

Asiamedic Ltd 8/8/2012

United Fiber System Ltd 8/8/2012

GK Goh Holdings Ltd 8/8/2012

Soon Lian Holdings Ltd 8/8/2012

HLH Group Ltd 8/8/2012

Albedo Ltd 8/8/2012

Hoe Leong Corp Ltd 8/8/2012

Parkson Retail Asia Ltd 8/8/2012

Creative Technology Ltd/Singapore 8/8/2012

Neptune Orient Lines Ltd/Singapore 8/8/2012

Viking Offshore and Marine Ltd 8/8/2012

Photon Kathaas Productions Ltd 8/8/2012

Mortice Ltd 8/8/2012

Rotary Engineering Ltd 8/9/2012

China Yuchai International Ltd 8/10/2012

Golden Agri-Resources Ltd 8/10/2012

Straco Corp Ltd 8/10/2012

Kingsmen Creatives Ltd 8/10/2012

Mew ah International Inc 8/10/2012

Genting Singapore PLC 8/10/2012

United Engineers Ltd 8/10/2012

IFS Capital Ltd 8/10/2012

Anw ell Technologies Ltd 8/10/2012

NSL Ltd/Singapore 8/10/2012

CSE Global Ltd 8/10/2012

Bonvests Holdings Ltd 8/10/2012

New Toyo International Holdings Ltd 8/10/2012

Centurion Corp Ltd 8/10/2012

Asia Pacif ic Brew eries Ltd 8/10/2012

Amara Holdings Ltd 8/10/2012

See Hup Seng Ltd 8/10/2012

Mary Chia Holdings Ltd 8/10/2012

VGO Corp Ltd 8/10/2012

Internet Technology Group Ltd 8/10/2012

Kitchen Culture Holdings Ltd 8/10/2012

ABR Holdings Ltd 8/10/2012

Achieva Ltd 8/10/2012

Global Palm Resources Holdings Ltd 8/10/2012

Etika International Holdings Ltd 8/10/2012

Otto Marine Ltd 8/10/2012

Sitra Holdings International Ltd 8/10/2012

Koyo International Ltd 8/10/2012

Earning Announcement – Singapore

Calendar

Morning Note 8 August 2012

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Date Statistic For Survey Prior Date Statistic For Survey Prior

8/8/2012 Consumer Credit Jun $10.250 $17.117B 8/8/2012 Automobile COE Open Bid Cat A 8-Aug -- 68656

8/8/2012 MBA Mortgage Applications 3-Aug -- 0.20% 8/8/2012 Automobile COE Open Bid Cat B 8-Aug -- 90501

8/8/2012 Nonfarm Productivity 2Q P 1.40% -0.90% 8/8/2012 Automobile COE Open Bid Cat E 8-Aug -- 92700

8/8/2012 Unit Labor Costs 2Q P 0.50% 1.30% 8/10/2012 GDP (annualized) (QoQ) 2Q F 0.50% -1.10%

8/9/2012 Trade Balance Jun -$47.5B -$48.7B 8/10/2012 GDP (YoY) 2Q F 2.20% 1.90%

8/9/2012 Initial Jobless Claims 4-Aug 370K 365K 8/15/2012 Retail Sales Ex Auto (YoY) Jun -- 0.70%

8/9/2012 Continuing Claims 28-Jul 3278K 3272K 8/15/2012 Retail Sales (YoY) Jun -- 0.50%

8/9/2012 Bloomberg Consumer Comfort 5-Aug -- -39.7 8/15/2012 Retail Sales (MoM) sa Jun -- -2.70%

8/9/2012 Wholesale Inventories Jun 0.30% 0.30% 8/17/2012 Electronic Exports (YoY) Jul -- 1.60%

8/10/2012 Import Price Index (MoM) Jul 0.30% -2.70% 8/17/2012 Non-oil Domestic Exports (YoY) Jul -- 6.80%

8/10/2012 Import Price Index (YoY) Jul -2.40% -2.60% 8/17/2012 Non-oil Domestic Exp SA (MoM) Jul -- 6.70%

8/11/2012 Monthly Budget Statement Jul -$103.0B -$129.4B 8/23/2012 CPI (MOM) - NSA Jul -- 0.00%

8/14/2012 NFIB Small Business Optimism Jul -- 91.4 8/23/2012 CPI (YoY) Jul -- 5.30%

8/14/2012 Producer Price Index (MoM) Jul 0.30% 0.10% 8/23/2012 Automobile COE Open Bid Cat A 23-Aug -- --

8/14/2012 PPI Ex Food & Energy (MoM) Jul 0.20% 0.20% 8/23/2012 Automobile COE Open Bid Cat B 23-Aug -- --

Source: Bloomberg

US Singapore

Economic Announcement

Source: Bloomberg

Morning Note 8 August 2012

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Important Information

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Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may provide an array of financial services to a large number of corporations in Singapore and worldwide, including but not limited to commercial / investment banking activities (including sponsorship, financial advisory or underwriting activities), brokerage or securities trading activities. Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may have participated in or invested in transactions with the issuer(s) of the securities mentioned in this publication, and may have performed services for or solicited business

Morning Note 8 August 2012

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from such issuers. Additionally, Phillip Securities Research, or persons associated with or connected to Phillip Securities Research, including but not limited to its officers, directors, employees or persons involved in the preparation or issuance of this report, may have provided advice or investment services to such companies and investments or related investments, as may be mentioned in this publication.

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Morning Note 8 August 2012

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Contact Information (Singapore Research Team)

Chan Wai Chee Lee Kok Joo, CFA Joshua Tan CEO, Research Head of Research Macro Strategist

Special Opportunities S-Chips, Strategy Global Macro, Asset Strategy +65 6531 1231 +65 6531 1685 +65 6531 1249

yebo@phillip.com.sg leekj@phillip.com.sg joshuatan@phillip.com.sg

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Gaming, US Property Transportation, Telecom. +65 6531 1791 +65 6531 1792 +65 6531 1221

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Global Macro, Asset Strategy Global Macro, Asset Strategy +65 6531 1735 +65 6531 1535

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

Morning Note 8 August 2012

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HONG KONG

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UNITED STATES

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