PP16832/01/2013 (031128) Malaysiaupload.xinhua08.com/2012/0221/1329811726609.pdf · (i) LNG regas...
Transcript of PP16832/01/2013 (031128) Malaysiaupload.xinhua08.com/2012/0221/1329811726609.pdf · (i) LNG regas...
Kim Eng Hong Kong is a subsid iary of Malayan B anking B erhad
SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Malaysia
17 October 2011
PP16832/01/2012 (029059)
Sector Update 21 February 2012
PP16832/01/2013 (031128)
Page 1 of 2
Oil & Gas The golden age of gas?
Maintain sector Overweight. The recent talk on gas supply dynamics
given by the President of the International Gas Union (IGU), Datuk (Dr)
Abdul Rahim, reaffirmed our positive views of the natural gas market.
Malaysia will embrace LNG imports this July to address supply
bottlenecks. Against this backdrop, service providers in the gas supply
chain would benefit. We are Overweight on the sector on expectations
of continuous positive newsflow benefiting the service providers.
Natural gas: A commodity growing in importance. Natural gas is set
to overtake coal as the second-largest fuel source by 2030. Demand
growth of 2% p.a. is the highest among the fuels (average: 1.2% p.a.).
At this rate, gas would account for 25% of total generation energy mix
by 2035 (2010: 23%). Asia, notably China, is the largest consumer of
gas. Against this backdrop, LNG trade is set to expand at a rapid pace,
as output grows to 594m tpa by 2020 (2008: 376m tpa). Australia will
be the largest LNG supplier in future, with a forecasted production of
100m tpa, overtaking Qatar‟s 77m tpa.
Malaysia is embracing structural changes in the natural gas
dynamics. Despite being a net exporter of natural gas with the 15th
largest gas reservoir in the world, Malaysia will receive its first imports
in 2012. Up to 3.8m tpa of gas (from the Lekas regasification plant in
Melaka) will be injected into the domestic pipeline system. This would
effectively lift gas supply by 24% and single-handedly address the gas
curtailment issue which has plagued the power sector since 2011.
Another 3.8m tpa of LNG supply will come in by 2017 as PETRONAS
commercialises its RAPID project in Pengerang, Johor.
Domestic gas price structure is set to transform. As gas supply
from imports increases, domestic average selling prices (ASPs) for
natural gas will rise as subsidies are set to fall. Malaysia‟s current gas
prices are among the lowest in Asia. Plans are in place for a systematic
RM3/mmBtu adjustment in price every six months. Based on the
projection, Malaysia will pay gas prices equal to market rates by 2016.
Nevertheless, the price increase is not cast in stone just yet. A strong
political will is required to execute this exercise.
Championing the champion. The 3.8m tpa of LNG capacity from the
Lekas regasification plant (from Jul 2012) would add 505mmscfd of gas
into the Peninsular Gas Utilisation (PGU) system. This will effectively lift
domestic gas supply by 24% (based on 2,066 mmscfd of gas
transmitted for 2011). Longer-term growth will be further supported by
the second and third regasification plants that will be constructed in
Johor and Sabah, which would raise supply by another 3.8m tpa come
2017 (from the Johor plant alone).
Summary of consensus valuations (calenderised)
Company Mkt cap Price EPS (sen) EPS Grth (%) PE (x) DPS (sen) Div Yield (%) (RM’m) (RM) 12F 13F 12F 13F 12F 13F 12F 13F 12F 13F
Petronas Gas 32,530.4 16.44 72.4 72.7 0.0 0.5 22.7 22.6 50.0 50.0 3.0 3.0
PGN* 87,875.5 3,625 282.0 310.7 6.3 10.2 12.9 11.7 151.5 162.8 4.2 4.5
Source: Bloomberg; * IDR currency
Overweight (unchanged)
Wong Chew Hann, CA [email protected] (603) 2297 8688
21 February 2012 Page 2 of 12
Oil & Gas 17 October 2011
Page 1 of 2
Let’s talk about gas
We recently hosted a „Gas Sector Outlook‟ session with Datuk (Dr)
Abdul Rahim Hashim, President of the International Gas Union (IGU)
and Malaysian Gas Association, as the keynote speaker. The topic of
the presentation was “The transformation of the global gas market and
the emerging gas scenarios in Malaysia”. Key highlights are as follows.
Demand for natural gas is strong. Natural gas is set to grow nearly
twice as fast relative to the total global energy mix. The 2.0% p.a.
growth up to 2035 will be the strongest among other energy sources
(i.e. oil, coal, biomass, nuclear, hydro; total energy growth: 1.2% p.a.). It
is estimated that natural gas should overtake coal as the second-largest
energy fuel after oil by 2030. Against this backdrop, natural gas‟ share
of the total energy mix will rise to 25% by 2035 (from 23% in 2010).
The key drivers to higher gas demand. The appetite for gas from
Asia, notably China, is strong. Under its 12th Five-Year Plan, the China
market alone will make up nearly 30% of global gas growth. The recent
nuclear energy crisis in Fukushima, Japan also expedited natural gas
as a preferred substitute.
Global LNG trade is also developing rapidly, as trade volume grows and
becomes more flexible (i.e. more short- to medium-term contracts vs.
long-term trades). The widespread development of unconventional gas
(i.e. coal-bed methane, shale) as well as the lower cost of production
(i.e.USD3-9/mmBtu) also aided growth.
The global LNG outlook. The share of LNG in global energy markets
is set to grow from 31% in 2008 to 42% by 2035, as volume traded
more than doubles over the projection period. On the supply side,
global LNG output is set to grow by 55% from 376m tpa in 2010 to
594m tpa in 2020. Australia is well placed to become the LNG leader by
2020, overtaking Qatar as the largest producer.
World primary energy demand by fuel Natural gas consumption by region
0
1,000
2,000
3,000
4,000
5,000
1980 1990 2000 2010 2020 2030
(mtoe) Oil
Gas
Coal
Biomass
Nuclear
Other renewables
Hydro
2035
0 100 200 300 400 500 600
Rest of the world
Africa
Russia
Latin America
India
Middle East
OECD total
China
(bcm)
Source: IGC Sources: IEA, OECD
21 February 2012 Page 3 of 12
Oil & Gas 17 October 2011
Page 1 of 2
Global LNG supply-demand outlook
(bcma)
Sources: BP Statistical Review 2011, EIA, GIINGL, Booz & Company
Rising LNG share in the world gas trade
10
20
30
40
50
0
300
600
900
1200
2000 2008 2020 2035
Pipelines (LHS) LNG (LHS) Share of LNG (RHS)(bcm) (%)
Source: IGU
21 February 2012 Page 4 of 12
Oil & Gas 17 October 2011
Page 1 of 2
Malaysia’s natural gas and LNG perspective
Reserves. Malaysia‟s geological gas reserves stood at about 82 trillion
cubic feet (tcf) in 2011 and the country is reputed to have the 15th
largest reservoir in the world, amounting to 1.3% of global reserves.
Approximately 63% of the gas reserves are located offshore Sabah
(15%) and Sarawak (48%), with offshore Peninsular Malaysia (primarily
Terengganu) accounting for the remaining 38%.
Production. Malaysia‟s natural gas production stood at 2.0 tcf (7,021
mmscfd – Sabah: 422mmscfd (6%), Sarawak: 3,904mmscfd (56%),
Peninsular Malaysia: 2,695mmscfd (38%)) – in 2011, delivering about
2% of global natural gas production. Based on these statistics,
Malaysia‟s production life cycle is theoretically 34 years.
Malaysia’s natural gas reserves (tcf) Malaysia’s natural gas production (tcf)
79.7
78.0
80.5
81.4
80.6 80.6
81.3
82.4
75
76
77
78
79
80
81
82
83
2004 2005 2006 2007 2008 2009 2010 2011
1.66
1.92 1.92 1.91
1.97 1.97 1.951.98
1.4
1.5
1.6
1.7
1.8
1.9
2.0
2004 2005 2006 2007 2008 2009 2010 2011
Sources: PETRONAS, Maybank-IB Sources: Department of Statistics, Maybank-IB
Consumption. 2,066 mmscfd of gas (38% of production) was injected
into Petronas Gas‟ PGU system in 2011, of which 672 mmscfd of the
gas flow was delivered from the Malaysia-Thailand Joint Development
Area {JDA} (373mmscfd), West Natuna (211mmscfd) and PM3 CAA
(88mmscfd) fields. Of the total injected into the PGU, the
power sector (TNB and IPPs) consumed 1,054 mmscfd of gas
124 mmscfd of gas was exported to Singapore
888 mmscfd of gas was allocated to the non-power industry
Gas Malaysia‟s portion totaled 346 mmscfd
PETRONAS‟ clients and its internal consumption took up the
remaining 542 mmscfd
21 February 2012 Page 5 of 12
Oil & Gas 17 October 2011
Page 1 of 2
Natural gas supply chain in Peninsular Malaysia (in mmscfd)
(including internal
consumption)
Imports
Offshore Peninsular
West Natuna
PETRONAS(Gas wholesaler)
Export to Singapore
Gas Malaysia
PETRONAS
customers
IPPs
TNB
Petronas Gas (through PGU
system)
Power sector
Non-power
sector
M’sia Thai
Joint Dev. Area
2,023
373
1,054 (51%)
124 (6%)
888 (43%)
542 (61%)
346 (39%)
(Processing and
transmission)
2,066
PETRONAScustomers
IPPs
TNB
Non-power sector
685 (65%)
369 (35%)
PM3 CAA
88
211
Sources: Various, Maybank-IB
21 February 2012 Page 6 of 12
Oil & Gas 17 October 2011
Page 1 of 2
Malaysia’s natural gas demand-supply outlook
Diminishing: Domestic natural gas production. Production growth
has been relatively flat over the past five years, owing to maturing
reserves and the absence of new gas field discoveries offshore
Peninsular Malaysia. Based on Wood Mackenzie‟s findings, gas supply
from Peninsular Malaysia‟s fields (which supplies to domestic needs) is
anticipated to plateau from 2015-17, and drop sharply from 2019-21.
Rising: Domestic natural gas consumption. At the same time,
domestic daily consumption of natural gas has been rising, by 1% p.a.
over the last four years, owing to it being the more efficient and
affordable source of energy relative to oil and biomass. However,
growth has been constrained by the limited availability of supply.
Malaysia’s gas production forecast (2010-25) – mmscfd
5.9 5.9 5.8 5.7 5.65.4 5.3
5.14.7
4.33.9
3.5
2.9
21.7
1.5
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
(mmscfd)
Sources: Wood Mackenzie, Maybank-IB
(i) LNG regas is a game-changer for long-term supply
LNG imports should address gas shortage concerns. The import of
LNG is touted as the long-term solution to feeding Malaysia‟s growing
gas demand. The first LNG imports amounting to 3.8m tpa will be
injected into the system by Jul 2012, and up to 7.6m tpa of LNG will
flow into the PGU by 2017.
Peninsular Malaysia’s average gas production & total curtailment days
2,193
2,012 2,058 2,0992,200 2,212
1,9992,124 2,146 2,140 2,109
1,899 1,929 1,979 1,953 1,846 1,785 1,8071,923 2,005 1,936 1,908 1,946 1,892
0
5
10
15
20
25
30
35
0
500
1,000
1,500
2,000
2,500
Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11
Kerteh- ave.production (LHS) JDA- ave.production (LHS) Curtailment days (RHS)(mmscfd) (days)
Sources: Energy Commission, Maybank-IB
21 February 2012 Page 7 of 12
Oil & Gas 17 October 2011
Page 1 of 2
Malaysia’s generation fuel mix
60.352.1 50.7 50.5 54.2 57.6
51.1 54.7 55.8 52.0 52.542.3 44.9 47.6 44.9 41.1 37.9 37.0
42.1 42.2 43.3 40.1 42.5 41.1
32.641.2 43.2 45.2
42.4 38.844.6 40.3 38.0 42.4 41.7
49.8 48.2 40.541.1 44.9
42.8 45.946.8 43.5 44.1 46.4 44.6 45.3
7.1 6.3 4.7 4.0 3.4 3.3 3.9 4.9 6.2 5.9 5.8 6.7 5.97.3
6.5 6.46.9 4.6
4.44.4 4.5 5.4 6.0 6.5
0.3 1.4 0.2 0.4 0.3 0.1 1.2 1.0 4.6 7.5 7.510.5 11.6
6.6 9.9 8.1 8.1 6.4 5.9
1.9 0.9 0.1 0.6 0.6
0
10
20
30
40
50
60
70
80
90
100
Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11
Gas Coal Hydro Oil & Distillates Interconnection(%)
Sources: Energy Commission, Maybank-IB
Malaysia is committed to 7.6m tpa of additional LNG by 2017. 7.6m
tpa of LNG equates to 1,011 mmscfd of natural gas, or 40% of the gas
supply injected into the PGU system in 2010. This should offset the fall
in domestic fields‟ gas up to 2017 while maintaining Malaysia‟s gas
supply level at 5,977 mmscfd.
LNG supply commitment is already underway. We understand that
PETRONAS is already working towards ensuring availability of LNG
supply from various suppliers (i.e. Australia, Europe and Middle East),
both on short and long-term contracts.
PETRONAS’ LNG import commitments
Seller (Country) Scheduled delivery date
Duration (year)
Quantity (m tpa)
GDF Suez (France) Aug 2012 2.5 2.5
Qatargas(Qatar) 2013 20 1.5
Gladstone LNG (Australia) 2014 20 3.5
Total 7.5
Sources: Various, Maybank-IB
Malaysia is set to embrace third-party gas importation by Jul 2012.
The first LNG import will be injected into the system by Jul 2012. In
order to receive LNG that is required to be subsequently regassed for
transmission through the PGU system, a regasification plant and
receiving terminal (i.e. floating storage units, subsea and onshore
pipelines) is required.
First regas project being built in Melaka with a 3.8m tpa capacity.
Construction of the regas facilities aka „Project Lekas‟, developed by
Petronas Gas at Sungai Udang, Melaka is in progress. Based on the
LNG delivery schedule, Melaka‟s regas plant should hit its maximum
capacity in 2012.
South Johor has been identified to be the second regas base. We
reckon the planned regas plant, which will be larger in size than the one
in Melaka, will support PETRONAS‟ USD20b Refinery and
Petrochemical Industrial Development (RAPID) and the Iskandar
Development Region (IDR) programmes.
21 February 2012 Page 8 of 12
Oil & Gas 17 October 2011
Page 1 of 2
A third regas terminal in Tawau? This would support a gas-fired
power plant there. In terms of size, we reckon the regas terminal would
be the smallest when compared against the Melaka and Johor facilities.
Planned regas terminals capacity
0.0 2.0 4.0 6.0 8.0 10.0 12.0
Indonesia
Malaysia
Singapore
Phillippines
Thailand
Vietnam
10.5
7.6
6.0
5.3
5.0
3.0
Source: Petronas
(ii) New field, new gas, new growth
Malaysia to get additional gas from new fields by 2013.
Notwithstanding the regas programmes and new plants in Melaka,
Johor and Sabah which involve LNG imports, PETRONAS and its
Production Sharing Contract (PSC) partners will spend about RM15b to
develop a cluster of gas fields offshore Peninsular Malaysia.
Gas projects will be on an accelerated basis. PETRONAS expects
the first delivery of 100 mmscfd of gas by early 2013, and 250 mmscfd
by 2015 (3-9% of domestic consumption), from these new fields.
Malaysia’s gas production forecast (2010-25) – mmscfd
5.9 5.9 5.8 5.7 5.6 5.4 5.3 5.14.7
4.33.9
3.52.9
2.0 1.7 1.5
0.3 0.5 0.50.5 0.5 1.0
1.01.0
1.01.0
1.0
1.01.0
1.0
0.1 0.10.3 0.3 0.3
0.30.3
0.30.3
0.3
0.30.3
0.3
5.9 5.9 6.1 6.3 6.2 6.2 6.1 6.4 6.0 5.6 5.2 4.8 4.2 3.3 3.0 2.8
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2010 2011F 2012F 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F
Gas supply from PM fields LNG Imports New PM fields(mmscfd)
Sources: Wood Mackenzie, Maybank-IB
21 February 2012 Page 9 of 12
Oil & Gas 17 October 2011
Page 1 of 2
Peninsular Malaysia gas supply outlook
Source: PETRONAS
Malaysia’s natural gas market reform
From a regulated to an open market. Malaysia is in the process of a
structural transformation as it takes in LNG imports. An operating
framework has been mooted to reform the domestic market. With the:
(i) gas supply, (ii) transmission pipeline and regasification facilities, and
(iii) third-party access transportation tariff already in place, the natural
gas pricing mechanism is the next item to be addressed.
Gas subsidy will be gradually removed over the next five years.
The proposed reform by the Economic Planning Unit (EPU) will result in
natural gas prices being systematically increased by RM3.00/mmBtu
every six months until it meets market prices by 2016. The systematic
lift in ASP is aimed at eliminating the potential effect of demand
destruction for gas.
However, execution will be a challenge. While the proposal is ideal,
implementation is a challenge, for it requires strong political will as it
would impact the socio-economic outlook. As it is, it has already
experienced hiccups. The second planned price hike has missed the
Dec 2011 deadline, and the next revision in Jun 2012 too is likely to
face delays. The last revision was undertaken in Jun 2011.
Two-tier natural gas pricing? One option, we reckon, is for the natural
gas resources from Peninsular Malaysia fields to be subjected to the
EPU price structure, while the LNG import could be immediately priced
at market rates (i.e. two-tier pricing). The other likely scenarios would
be to have single-tier pricing for both sources of supply (i.e. Peninsular
Malaysia fields and LNG import), together with either adoption of the
EPU pricing structure or an entirely new tariff. Of these scenarios, we
think the two-tier gas price structure is more likely to be implemented.
21 February 2012 Page 10 of 12
Oil & Gas 17 October 2011
Page 1 of 2
Gas subsidy rationalization reform
Sources: EPU, PM‟s Department, PETRONAS
The original schedule for M’sia to get to market pricing by 2016 South East Asia end-user gas price
6.4
14.31
10.70
13.70
16.70
19.70
22.70
25.70
28.70
31.70
34.70
37.70
40.70
9.40
17.99
11.05
14.05
17.05
20.05
23.05
26.05
29.05
32.05
35.05
38.05
41.05
11.32
23.88
15.3518.35
21.35
24.35
27.35
30.35
33.35
36.35
39.35
42.35
45.35
0
10
20
30
40
50
Mar-03 Aug-08 Mar-09 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15
Power Sector Gas M'sia Non-power sector(RM/ mmbtu)
Country Power Industry Spread
(USD/ mmBtu)
Vietnam 3.38 8.31 4.93
Malaysia 4.57 6.12 1.55
Indonesia 5.67 6.50 0.83
Thailand 7.71 13.24 5.53
Singapore 17.99 18.46 0.47
Sources: PETRONAS, Maybank-IB Sources: Various
21 February 2012 Page 11 of 12
Oil & Gas 17 October 2011
Page 1 of 2
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 sel l 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 occurrence 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.
21 February 2012 Page 12 of 12
Oil & Gas 17 October 2011
Page 1 of 2
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 February 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 if the reader is
receiving or accessing this report in or from other than Malaysia.
As of 21 February 2012, Maybank Investment Bank Berhad and the covering analyst does not have any interest in 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
Stockbroking Business: Level 8, Tower C, Dataran Maybank, No.1, Jalan Maarof 59000 Kuala Lumpur
Tel: (603) 2297 8888; Fax: (603) 2282 5136
http://www.maybank-ib.com