REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 31 March 2015

▌What’s on the Table…

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Banks - GST: More taxing than the small direct impact

The Association of Bank in Malaysia revealed the details for the treatment of GST for banking charges, which are mostly “pass-through” in nature. The implementation of GST should have minimal direct negative impact arising from the additional RM10-20m costs per annum for banks to manage this. But the indirect negative impact is expected to be greater as it is likely to dampen consumer/business sentiment in 2015, leading to slower loan and fee income growth. This, coupled with an expected upturn in credit costs, leads us to maintain our Underweight call on the sector. RHB Capital remains our top pick.

Astro Malaysia - Better times ahead

Astro’s FY1/15 core net profit was in line with expectations at 102% of our and 101% of consensus estimates, driven by higher ARPU, subs growth and better content monetisation. Nevertheless, we see potential risk toward Astro’s earnings given the challenging economy outlook and weak consumer sentiment. Therefore, we cut FY16-17 EPS forecasts by 5-7% to account for gradual pay-TV subs addition and a higher-than-expected effective tax rate from its home-shopping start-up. However, we still like Astro for its resilient operating model and dominant position. We maintain Add with a slightly lower DCF-based target price of RM3.70 (WACC 8%). It remains our top pick in the sector. Rising ARPU growth from value-added services, higher licensing income and stronger contribution from home shopping are potential catalysts.

▌News of the Day…

—————————————————————————————————————————————————————————————————————— • No plans to peg ringgit, says minister

• Gamuda, IJM Corp, WCT bidding for Penang Transport Master Plan

• Affin Holdings appoints Kamarul Ariffin as new group CEO

• Public Bank set to maintain earnings momentum in 2015, says founder

• Tenaga fulfills 50% stakeholding condition in Integrax Revised Offer

• Fitch revises outlook on Sime Darby issuer ratings to negative

• Perodua Dealer Association pleads for sales tax reclaim

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,650

1,700

1,750

1,800

1,850

1,900

Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15

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FBMKLCI

1821.83 8.46pts 0.47%Mar Futures Apr Futures

1827.5 - (0.91% ) 1824 - (1.00% )———————————————————————————

Gainers Losers Unchanged402 382 339

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Turnover1922.61m shares / RM1709m

3m avg volume traded 2030.50m shares

3m avg value traded RM2065.68m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,822 3,454 5,439 1,497 24,855 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,821.83 0.5 3.4

FBM100 12,196.76 0.4 3.3

FBMSC 16,282.90 (0.2) 8.3

FBMMES 7,063.22 1.3 24.9

Dow Jones 17,976.31 1.5 0.9

NASDAQ 4,947.44 1.1 4.5

FSSTI 3,454.26 0.1 2.6

FTSE-100 6,891.43 0.5 5.0

SENSEX 27,975.86 1.9 1.7

Hang Seng 24,855.12 1.5 5.3

JCI 5,438.66 0.8 4.1

KOSPI 2,030.04 0.5 6.0

Nikkei 225 19,411.40 0.7 11.2

PCOMP 7,899.41 0.3 9.3

SET 1,496.51 0.1 (0.1)

Shanghai 3,786.57 2.6 17.1

Taiwan 9,521.87 0.2 2.3————————————————————————————————

Close % chg Vol. (m)

PRIVASIA 0.400 9.6 105.2

INGENUITY 0.080 0.0 90.4

DGB ASIA 0.140 21.0 59.3

BERJAYA CORP 0.465 5.7 56.5

SCAN ASSOCIATES 0.130 4.0 47.2

WINTONI GROUP 0.395 12.9 39.7

PLABS 0.320 12.3 38.9

MPAY 0.265 3.9 32.6————————————————————————————————

Close % chg

US$/Euro 1.0826 (0.07)

RM/US$ (Spot) 3.7110 (0.04)

RM/US$ (12-mth NDF) 3.8275 0.73

OPR (% ) 3.19 0.00

BR (% , CIMB Bank) 4.00 0.00

GOLD ( US$/oz) 1,186.45 0.03

WTI crude oil US spot (US$/barrel) 48.68 (0.39)

CPO spot price (RM/tonne) 2,160.00 (1.10)

Market Indices

Top Actives

Economic Statistics

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

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Daybreak│Malaysia

March 31, 2015

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Global Economic News

US consumer spending rose 0.1% mom in Feb (-0.2% mom in Jan). Adjusted for inflation, consumer spending fell 0.1% mom in Feb (+0.2% mom in Jan), the first monthly decline in real spending since last Apr. Personal income increased 0.4% mom in Feb (+0.4% mom in Jan). (WSJ, Bloomberg)

US personal consumption expenditures (PCE) price index rose 0.2% mom in Feb (-0.4% mom in Jan) and was up 0.3% yoy (+0.2% yoy in Jan). Excluding food and energy, core PCE edged up 0.1% mom (+0.1% mom in Jan) and increased 1.4% yoy in Feb (+1.3% yoy in Jan). (Reuters, Bloomberg)

US pending home sales increased 3.1% mom in Feb (+1.2% mom in Jan). From a year earlier, pending home sales rose 12.0% yoy in Feb (+6.1% yoy in Jan). (WSJ, Bloomberg)

The US Dallas Fed business activity index in Mar fell to -17.4 (-11.2 in Feb). (Bloomberg)

Euro-area index of executive and consumer confidence jumped to 103.9 in Mar (102.3 in Feb), the highest level in more than 3 1/2 years. Industrial confidence was up at -2.9 in Mar (-4.6 in Feb). Consumer sentiment increased to -3.7 (-6.7 in Mar), and confidence in the services sector rose to +6 (+5.3 in Feb). (Bloomberg)

Japan’s industrial production declined 3.4% mom in Feb (3.7% mom in Jan). On year, output fell 2.6% yoy in Feb (-2.8% yoy in Jan). (Bloomberg)

The People’s Bank of China (PBoC) Governor Zhou Xiaochuan said that the nation’s growth rate has tumbled “a bit” too much and that policy makers have scope to respond, underscoring forecasts for further monetary easing in the world’s second-largest economy.

“China’s inflation is also declining, so we need to be vigilant to see if the disinflation trend will continue, and if deflation will happen or not,” he said. “China can have room to act,” both with interest rates and “quantitative” measures, he said. (Bloomberg)

China lowered down-payment requirements for some second homes, further easing mortgage policies as the government seeks to prop up the property market and counter an economic slowdown.

The People’s Bank of China (PBoC) cut the minimum down payment to 40% from 60% for some people buying a second home before paying off an existing mortgage, the central bank announced. (Bloomberg)

South Korea's industrial output moved up 2.6% mom in Feb (-3.8% mom in Jan). Compared with a year earlier, numbers were down 4.7% yoy in Feb (+1.7% yoy in Jan). (Yonhap, Bloomberg)

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March 31, 2015

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The Monetary Authority of Singapore (MAS) said the Savings Bonds programme - which will only be available for individuals - will be launched in the second half of this year.

Investors can put in a minimum of S$500, and in subsequent multiples of S$500, for 10 years. There will be a limit to the total investment amount so that it can maximise participation and to ensure a broad reach, said MAS.

Investors can opt for a monthly issuance of their money, and they can choose to withdraw all of their money any time, with no penalty. This means investors need not have to decide upfront on how long they wish to invest.

Those in the Savings Bonds programme will earn interest that is linked to long-term Singapore Government Securities rates, which will increase over time. (CNA)

Thailand's manufacturing production index went up 3.6% yoy in Feb (-0.77 in Jan). Capitalization utilization stood at 61.40% in Feb (61.48% in Jan). (WSJ)

Bank Indonesia (BI) predicts that higher fuel prices will have only a mild impact on inflation in the country, Gov. Agus Martowardojo said. "Prices of commodities are softer, which will offset higher fuel prices," he said. (WSJ)

Malaysian Economic News

The government has no plan to peg the ringgit against the US dollar to address its depreciation, Deputy Finance Minister Datuk Chua Tee Yong said. He said the current situation is different from the financial crisis in 1997-1998 when such measure was taken as the country's economic condition now is on a strong footing.

"The current situation is driven by global development that have also affected other countries in the region. What is important our economic activities are not affected and a drastic measure like pegging the ringgit is only for extreme situations and we are not embroiled in the quandary," he said. (Bernama)

The Customs Department will recruit more than 800 new staff over three months towards efforts to monitor implementation of the Goods and Services Tax (GST) in a more transparent manner. Customs GST Director Datuk Subromaniam Tholasy said the number is the balance of the 1,600 new recruits approved by the government recently. "We have to date already recruited about half the total approved. The recruitment exercise will be conducted in stages," he added. (Sun)

The Customs Department, which has braced itself for public confusion over Goods and Services Tax (GST), expects the situation to normalise within six months to a year. One of the biggest hitches the department expects consumers to encounter is that of price differences at GST-registered and non-GST-registered businesses.

“If one retailer is registered and the next shop is not, consumers who go to the first shop are going to see an additional 6% tax. The other shop may be selling the same item at a different price because it has not registered for GST,” said GST director Datuk Subromaniam Tholasy. (Star)

Daybreak│Malaysia

March 31, 2015

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The implementation of the Goods and Services Tax (GST) on banking and financial sector will have minimal impact on consumers, said Senior Assistant Director of the Royal Malaysian Customs Department (Banking and Finance), Rozila Saad. She said the new tax would only be imposed on fees in every banking transaction and not on the amount of the transaction.

Most banks and finance companies were ready to implement the GST, she added. “The impact on this sector is rather small as most of the activities carried out are exempted except for transactions that are based on fee only,” she said. (Malay Mail)

The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) foresees a recovery in exports with the weak ringgit and stronger growth in the United States.

For the month of Jan, Malaysian exports dropped 0.65% to RM63.60 bn from RM63.97bn recorded in the same month in 2014. The chamber’s Socio-Economic Research Committee Deputy Chairman Peck Boon Soon said this might not be enough to cushion three major domestic headwinds affecting the economy, namely the implementation of the Goods and Services Tax (GST), falling oil prices and a tightening property market. Peck added that there still remained challenges for exports globally, with China heading south while Japan and Euro zone were still recovering.

On the local currency, he said the ringgit would continue to underperform as the current fluctuations were quite volatile. There is a possibility that the local currency might fluctuate between 3.65 to 3.75 against the US Dollar, said Peck. (BT)

Prime Minister Datuk Seri Najib Tun Razak launched a set of guidelines on the Goods and Services Tax (GST) to help the people better understand the taxation system to be implemented on Apr. The set of guidelines, encompassing the GST FAQ booklet; TAP (Taxpayer Access Point) handbook; multimedia video guide on submitting GST statements and making payment and GST Helpdesk Hotline, were launched by Najib at the Federal Territory Royal Customs Department. The Helpdesk Hotline, to be made available at all Customs offices, is in addition to the GST Hotline and Customs Call Centre. (Bernama)

Political News

PM Datuk Seri Najib Razak assured the people that their future is better secured under Barisan Nasional. He questioned the credibility of Pakatan as a political front, which is now all torn up in Sabah and Sarawak following the contentious hudud controversy.

Najib said it was clear that the opposition had hoodwinked the people into voting a supposedly workable alliance. "In Peninsular Malaysia there is an open fight (between PKR, DAP and Pas). If that is the situation, how can we depend on them to govern the country?"

On Fri, Sarawak DAP quit Pakatan in the state while yesterday, the cohesion of the pact in Sabah was dealt another blow when PKR and DAP announced that they were severing ties with Pas over the hudud issue. (NST)

Police have arrested The Malaysian Insider's managing editor Lionel Morais, Bahasa news editor Amin Shah Iskandar and features and analysis editor Zulkifli Sulong over a report on hudud related to the Conference of Rulers. Police together with Malaysian Communications and Multimedia Commission (MCMC) officials raided The Malaysian Insider's office in Mutiara Damansara and made the arrests. The arrests came as part of investigations after a police

Daybreak│Malaysia

March 31, 2015

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report lodged by an official from the Conference of Rulers last week. (Malaysian Insider)

PKR deputy president Azmin Ali said the party will look at other avenues to get party adviser Datuk Seri Anwar Ibrahim out of prison. Anwar's family had sought a reprieve for him from the Pardons Board but their application had been turned down. This has thrown the party into a quagmire, as Anwar will have to serve his five-year jail term for sodomy. He will also lose his position as Permatang Pauh MP and parliamentary Opposition Leader. (Star)

Corporate News

Fitch Ratings has revised the Outlook on Malaysia-based conglomerate Sime Darby Berhad's (Sime Darby) Long-Term Foreign and Local Currency Issuer Default Ratings (IDR) to Negative from Stable. The IDRs and the company's senior unsecured rating are affirmed at 'A'. Fitch has also affirmed the rating on the company's USD1.50bn sukuk issue at 'A'.

The revision in the Outlook to Negative follows a sharp increase in Sime Darby's FFO-adjusted net leverage to about 2.50x in the first half of the financial year to 30 June 2015 (FY14: 1.52x), well above the 1.75x level at which Fitch would consider negative rating action.

While Fitch expected the increase in leverage after the debt-funded acquisition of New Britain Palm Oil Limited (NBPOL), the agency now estimates that the deleveraging process will take longer than initially expected due to the weaker than expected performance of Sime Darby's industrial equipment business and higher net debt to fund the property development business. Given the weak commodity environment, Sime Darby's industrial equipment business will continue to face challenges over the short to medium term. (Fitch)

Public Bank expects to continue its organic growth strategy of expanding its core business of consumer financing this year. Chairman Tan Sri Teh Hong Piow said the bank will focus on home mortgages, passenger vehicle hire purchase financing and lending to viable SMEs across various economic sectors, as well as maintain its earnings momentum and record satisfactory performance in 2015.

"On the strategic direction and outlook for the group, the challenging and increasingly regulated business environment as well as intense competition for loans and deposits will continue to impact margins," he said at the bank's AGM, which proved to be a warm affair for Teh and his board of directors who received thunderous applause from grateful shareholders. (Bernama)

Gamuda Bhd, IJM Corp Bhd, WCT Holdings Bhd and Prasarana Malaysia Bhd were among the six that submitted bids to participate as project delivery partner (PDP) in the RM27bn Penang Transport Master Plan (TMP). On 16 Feb, Penang Local Government, Traffic Management and Flood Mitigation Committee chairman Chow Kon Yeow said only six out of 55 local and foreign companies that took the forms had submitted their bids when the request for the proposal to be the PDP for the Penang TMP closed.

According to a source, the two others were Singapore-based CGC Group Pte Ltd, and two Hong Kong investors represented by independent strategic adviser Datuk Dr Nik Zamri Majid. While Prasarana itself is not a construction player, it could form a partnership to participate as PDP. (Financial Daily)

Daybreak│Malaysia

March 31, 2015

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Tenaga Nasional Bhd (TNB) says its revised takeover offer for port operator Integrax Bhd at RM3.25 per share has turned unconditional, after receiving valid acceptances totalling 50.82% or 152.9m Integrax shares as at 5pm yesterday. "The revised offer shall remain open for acceptances up to 5pm on Monday (April 13). No further extension of the closing date for the revised offer will be made," TNB said in a filing with Bursa Malaysia. (Financial Daily)

The Employees Provident Fund (EPF) has pared its stake in UEM Sunrise Bhd, thus ceasing to be a substantial shareholder in the property developer. According to a Bursa Malaysia filing yesterday, the EPF disposed of 2.42m shares or a 0.05% stake in UEM Sunrise, leaving it with 226.2m shares or a 4.98% stake. (Financial Daily)

CIMB Thai Bank aims to collect between 7bn-8bn baht (100 baht = RM12.25) in deposits through its newly-launched saving product during a month-long campaign starting Apr. The short-term fixed deposit offers 2.3% interest for a 3-month tenure and 2.55 for seven months. It is targeted at those concerned about uncertainty in the interest rates movements in Thailand. "The minimum deposit is 50,000 baht and the depositors will receive the interest monthly or when the deposit matures," said senior executive vice president/head of retail banking group, Adisorn Sermchaiwong. (Bernama)

Poultry player Lay Hong Bhd has said it will reduce by half the number of shares it intends to place out to new investors, from 30% of its outstanding shares to just 15%, following “feedback” from shareholders. In a filing with Bursa Malaysia yesterday, Lay Hong said the proposed private placement entailed the issuance of up to 7.62m placement shares, representing up to about 15% of the existing issued and paid-up share capital of RM50.8m as at March 23. Lay Hong expects to raise gross proceeds of up to RM23.1m based on the issue price of RM3.03 per placement share. Of the amount raised, Lay Hong intends to use RM22.7m as working capital, with the remaining going towards expenses in relation to the proposals. (Star Biz)

Affin Holdings Bhd has appointed Kamarul Ariffin Mohd Jamil as its new group chief executive, as well as managing director (MD) and chief executive officer (CEO) of Affin Bank Bhd, effective Wednesday (April 1). He replaces Datuk Zulkiflee Abbas, 58, who is retiring. Zulkiflee has been holding the dual roles since January 2014. Affin Holdings said it has obtained Bank Negara Malaysia’s approval for the appointment of Kamarul Ariffin to helm the group. Kamarul Ariffin, 46, brings with him more than 20 years of experience in the corporate arena. He was previously the CEO of Affin Islamic Bank Bhd, rising through the ranks since he joined Affin Bank as the head of corporate strategy in 2003. (Financial Daily)

On 13 August 2010, Boustead Holdings announced a letter of award from the Government of Malaysia by 60%-owned Boustead DCNS Naval Corporation Sdn Bhd (BDNC) to undertake in-service support for two submarines for the Royal Malaysian Navy for a total contract sum of EUR193m and RM532m, effective for the period ending 30 Nov 2015. Today, BDNC received a letter of acceptance from the Government of Malaysia which approved an additional ceiling contract value of RM531m for the extension of the contract period up to 31 May 2017. (BMSB)

Daybreak│Malaysia

March 31, 2015

7

Boustead Heavy Industries's JV, which provides in-service support for two of the Malaysian navy’s submarines, has the contract extended. It said the contract for the Prime Minister’s class submarines was extended up to May 31, 2017 from the earlier. It had received the letter of acceptance from the government for the additional contract valued at RM532m. Boustead DCNS Naval Corporation Sdn Bhd (BDNC) – which is 60% owned by BHIC Defence Technologies Sdn Bhd and the remaining 40% by DCNS S.A. – is providing the services for the navy. (StarBiz)

Malakoff Corp Bhd, the power arm of MMC Corp Bhd, is likely to price its initial public offering (IPO) at its illustrative retail price of RM1.80/share based on interest garnered from investors to date, said MMC group managing director Datuk Seri Che Khalib Mohamad Noh. "The IPO is not overpriced. I think RM1.80 is a very good price. So far the indication of interest has been quite good," he said. (Financial Daily)

Oil & gas industry players in Asia have been urged to come up with breakthrough solutions in managing cost and operational efficiencies during the current weak global oil price environment. Making the call, Petronas COO and Executive Vice President (Downstream) Datuk Wan Zulkiflee Wan Ariffin said the solutions could be built through leveraging on one another's expertise, knowledge and experience in managing new market realities. "Asia's relevance is beyond just about contributing to demand in terms of population growth. The attraction of our vibrant region is really in our proven resilience, innovativeness and adaptability to change," he said. (Bernama)

The Sultan of Selangor, Sultan Sharafuddin Idris Shah wants the restructuring agreement for water industry services in the state to be finalised immediately according to the main agreement signed by the state and federal governments on Sept 12, 2014. He also wanted the process to be carried out based on the spirit and terms of the main agreement and not to be politicised by any party so that it could be properly implemented to fulfill the development needs and life of the people of Selangor.

“I am convinced that ‘face to face meetings and discussions’ can resolve this matter fairly to ensure more efficient and people-friendly services for treated water for all the people of Selangor." he said.

“I also want my menteri besar to continue with the firm attitude in defending the sovereignty of the Selangor state and interest of the people,” he said. (BT)

Malaysian palm oil futures touched a near two-week low on Monday, before reversing losses to end positive as traders positioned themselves ahead of export data due later this week. The benchmark June contract on the Bursa Malaysia Derivatives ended 1% higher at RM2,190 a tonne. Prices earlier hit RM2,143, its lowest levels since March 18 before climbing as high as RM2,196. "The market is anticipating good exports tomorrow and this is the only bullish factor we have in the market right now," said a trader with foreign commodities brokerage. (Reuters)

The share of palm oil in India's growing edible oil imports is expected to drop to the lowest since 2005/06 in the current year to October, as a narrower discount for prices of the tropical oil versus that of rival soyoil hurts demand. This shift in buying pattern at the world's top palm oil importer could drag on benchmark prices that have shed 3% in 2015 amid ample global soyoil supplies. Weak Brent crude prices have also dragged by making palm an unattractive option for blending into biodiesel. The share of palm oil in India's total edible oil imports will drop to 65%, said Govindbhai Patel, a trade expert and managing

Daybreak│Malaysia

March 31, 2015

8

director at GG Patel & Nihil Research Co. "Incremental demand has been shifting to soyoil," he said. The tropical oil accounted for as much as 86% of India's edible oil imports in 2007/08 and 68% in 2013/14. (Reuters)

The construction of the Pan Borneo Highway over a distance of 1,633km from Sarawak to Sabah at a cost of RM27bn underlines Barisan Nasional's (BN) promise to fulfill the manifesto of the 2013 general election.

Prime Minister Datuk Seri Najib Tun Razak said the BN government would not promise anything that would be impossible to implement because it is the expectation of the people who voted for BN. "I intend to fulfill my promise (Pan Borneo highway project) and tomorrow it will be fulfilled," he said yesterday.

Najib also pledged that the implementation of the Pan Borneo Highway would give priority to the local community of Sarawak because job opportunities and companies engaged would be from Sarawak.

Sarawak Chief Minister Tan Sri Adenan Satem said the implementation of the Pan Borneo Highway project was a promise long awaited by the people of Sarawak. "It will be the biggest ever engineering project being undertaken in Sarawak," he said. (Bernama)

The Goods and Services Tax (GST) for the finance and banking sector is based on fees and not on the amount transacted. Senior assistant director of customs (banking and finance) Rozila Saad clarified that GST is not charged on various activities such as bank accounts, deposits and withdrawals. "It is fee based. For instance, 6% GST is charged on opening of accounts." The amount transacted is not affected. (BT)

Beginning 1 Apr, Malaysia Airlines customers will be subjected to the 6% GST on applicable goods and services supplied by the national carrier. The GST, however, will be replacing the company's existing sales tax and service tax. (Bernama)

Adex on pay TV showed a 10.3% annual jump last year based on Nielsen Malaysia’s data, trumping adex growth for free-to-air TV (1%) and newspapers (1.7%). The reality is, even the pay TV industry had a challenging year. Astro’s TV ad revenue fell 2.3% to RM327.2m for FY15, it said when announcing its 4Q results. However, Astro’s higher radio revenue translated into a 1% increase in overall Astro advertising income to RM589m. (StarBiz)

Moody's said Malaysian banks’ exposure to the troubled 1MDB is credit negative, but manageable. "We do not expect these liabilities to migrate to the federal government’s balance sheet," it said in its credit outlook today." However, a RM950m line of credit that the Ministry of Finance extended to 1MDB earlier this year carries a risk," it warned. The credit line is in part to alleviate 1MDB’s liquidity pressures.

"It carries a risk that further government support would materially undermine the fiscal consolidation trend that underpins our positive outlook on Malaysia’s A3 sovereign rating." Moody's also expects some of Malaysia’s large banks to have moderate exposures. "We also understand that bank loans to 1MDB are well collateralised, so any possible losses for the banks will be smaller than their exposures." (BT)

Daybreak│Malaysia

March 31, 2015

9

The Perodua Dealers Association has pleaded with the government to allow its members to reclaim the 10% sales tax on invoices issued prior to the implementation of the GST. Its president, Wan Kamal Wan Ismail, said currently a 10% sales tax is imposed on new vehicles and this will be replaced by the 6% GST come 1 Apr. "This means unsold stocks, in which the 10% sales tax has already been paid, will be hit by an additional 6% GST on 1 Apr onwards. Each independent dealer will stand to lose an average of RM230,000 on double taxation after 1 Apr," he said. (Bernama)

Parkson Holdings Bhd’s shares were halted from trading from 2.30pm to 5pm on Monday ahead of an announcement by its Hong Kong subsidiary. It said on Monday its 52.71% owned subsidiary, Parkson Retail Group Ltd, which is listed on The Stock Exchange of Hong Kong Ltd, had its shares voluntarily suspended. The suspension was “pending the release of an announcement in respect of inside information of Parkson Retail”. (StarBiz)

Credit Suisse Group AG has bought 3.69m shares representing 5% stake in Sona Petroleum Bhd from the open market. The special-purpose acquisition company said the acquisition is a sign of the investment bank's confidence in the company's strategy and its management. Sona noted it is fully focused on securing a qualifying asset. (Malaysian Reserve)

Amcorp Properties is teaming up with Temasek and two other companies to acquire two London properties for £308m (RM1.68bn) and will undertake a mixed-use redevelopment on the property.

Amcorp said on Monday it had inked a joint venture with Temasek, Hotel Properties Ltd (HPL) and UK developer, Native Land (NL) to jointly develop Sampson House and Ludgate House in the heart of London’s South Bank, along River Thames.

The JV Co will undertake to redevelop the property into a world class residential led mix development complete with state-of-the-art offices, retail and leisure facilities. (Starbiz)

Seacera is expected to develop a township-concept project on a 202.3 ha site in Hulu Langat with a GDV of more than RM10bn. Group MD Zulkarnin Ariffin said the manufacturing company would develop the land either on its own or through a partnership. We think this project will be a success because our land is nearer to the city than other properties which are located further away, he said. He said details of the project would be made public once the company has a concrete decision and as per restricted under the regulators' rule. (StarBiz)

Datasonic Group Bhd’s wholly-owned unit, Datasonic Technologies Sdn Bhd, has received a letter of award from the Home Affairs Ministry to undertake maintenance services for personalisation process at the National Registration Department worth RM32.56m. Datasonic, in a filing to Bursa Malaysia, said the contract was for a period of two years commencing May 1 until April 30, 2017. “The contract is expected to contribute positively towards the future earnings and net assets per share of Datasonic for the financial year ending March 31, 2016 and the financial years thereafter for the duration of the contract,” it said. (BT)

Daybreak│Malaysia

March 31, 2015

10

Shin Yang Shipping Corp Bhd (Syscorp) and other local shipping firms are likely to gain from reduced competition with the impending withdrawal of Hubline Bhd from the container cargo transportation business. Syscorp currently has a fleet of 15 container vessels serving ports between Sarawak, Sabah and Peninsular Malaysia.

Hubline, one of the key shipping players in Sarawak, announced last month that it would cease container shipping operation by September 2015 to stop the heavy losses it had incurred in the past several years.

Founded in 1993, Hubline group operated a fleet of some 30 vessels, half of them container ships, before it downsized its operations in 2013. Hubline will withdraw from various trade routes, terminate related services and operational contracts and dispose off its container vessels and related assets. The exit plan is expected to result in a one-off cost of RM350m.

A market leader, Syscorp is said to command a market share of some 50% in container transportation in Malaysia. Other main players include Bintulu-based Harbour-Link Group Bhd and Penang-based MTT Shipping Sdn Bhd. (Star)

Sersol Bhd has fixed the issue price of its 19.53m placement shares at 25sen each, representing a premium of one sen or 4.34% to its five-day volume weighted average market price. The paint maker plans to use part of proceeds from the exercise for expansion to East Malaysia to secure new customers. Sersol will be using the money raised to finance its working capital, repayment of bank borrowings and for a new showroom and sales office. (Malaysian Reserve)

Mobile virtual network operator, XOX Bhd, will launch its new postpaid product in the next two months, in an aim to expand its subscriber base in the prepaid market segment. Group CEO Ng Kok Heng said the company is targeting some 20,000 subscribers for its postpaid product in the first three to six months. "We intend to switch our focus to attract more quality subscribers and provide more phone bundling services," he told The Malaysian Reserve after the company's EGM in Shah Alam yesterday. (Malaysian Reserve)

Daybreak│Malaysia

March 31, 2015

11

BMSB: Changes in shareholdings

Type of No of Ave Price

30-Mar-15 Date transaction securities Company (RM)

EPF 24/3 Disposed 3,850,300 AXIATA GROUP

EPF 25/3 Disposed 2,979,900 IOI CORPORATION

EPF 25/3 Disposed 1,708,300 SIME DARBY

EPF 24/3-25/3 Disposed 1,556,900 UMW HOLDINGS

EPF 25/3 Disposed 1,433,500 TELEKOM MALAYSIA

EPF 24/3-25/3 Disposed 1,331,200 CAHYA MATA SARAWAK

EPF 25/3 Disposed 1,120,400 BERJAYA AUTO

EPF 24/3 Disposed 1,103,600 MISC

EPF 25/3 Disposed 1,060,600 SAPURAKENCANA PETROLEUM

EPF 25/3 Disposed 1,040,100 IJM CORPORATION

EPF 25/3 Disposed 1,000,000 CAPITAMALLS MALAYSIA TRUST

EPF 25/3 Disposed 846,700 FELDA GLOBAL VENTURES

EPF 25/3 Disposed 754,500 DIGI.COM

EPF 25/3 Disposed 700,000 AMMB HOLDINGS

EPF 23/3-25/3 Disposed 306,300 MALAYSIA AIRPORTS

EPF 25/3 Disposed 271,600 AEON CO. (M)

EPF 25/3 Disposed 159,500 GAMUDA

EPF 25/3 Disposed 150,100 KUALA LUMPUR KEPONG

EPF 25/3 Disposed 134,200 ORIENTAL HOLDINGS

EPF 25/3 Disposed 110,600 DIALOG GROUP

EPF 25/3 Disposed 42,600 SHELL REFINING

EPF 25/3 Disposed 25,000 GENTING PLANTATIONS

EPF 25/3 Disposed 10,700 HONG LEONG BANK

Skim Amanah Saham Bumiputera 24/3 Disposed 2,564,200 TELEKOM MALAYSIA

Skim Amanah Saham Bumiputera 24/3-25/3 Disposed 2,054,300 MAXIS

Skim Amanah Saham Bumiputera 23/3-25/3 Disposed 1,795,100 KLCC REIT

Skim Amanah Saham Bumiputera 23/3-25/3 Disposed 1,795,100 KLCC PROPERTY

Skim Amanah Saham Bumiputera 19/3 Disposed 356,500 MALAYSIA AIRPORTS

Kumpulan Wang Persaraan 23/3-24/3 Disposed 1,238,500 GAMUDA

Kumpulan Wang Persaraan 23/3-24/3 Disposed 1,139,500 TUNE INS HOLDINGS

Kumpulan Wang Persaraan 23/3-24/3 Disposed 830,100 IJM CORPORATION

Commonwealth Insurance Holdings Ltd 23/3 Disposed 366,400 7-ELEVEN MALAYSIA

Aberdeen Asset Management PLC 25/3-26/3 Disposed 25,200 TASEK CORPORATION

Mitsubishi UFJ Financial Group, Inc 23/3-24/3 Disposed 15,500 GUINNESS ANCHOR

Mitsubishi UFJ Financial Group, Inc 24/3 Disposed 7,300 TASEK CORPORATION

EPF 25/3 Acquired 4,062,800 MALAYAN BANKING

EPF 24/3 Acquired 2,855,300 CIMB GROUP

EPF 25/3 Acquired 2,646,900 AIRASIA

EPF 25/3 Acquired 2,485,900 IHH HEALTHCARE

EPF 25/3 Acquired 2,096,100 MAXIS

EPF 23/3-24/3 Acquired 1,505,500 TENAGA NASIONAL

EPF 25/3 Acquired 327,800 PETRONAS GAS

EPF 25/3 Acquired 98,700 HARTALEGA HOLDINGS

EPF 25/3 Acquired 67,900 BAT

EPF 25/3 Acquired 58,100 TIME DOTCOM

EPF 25/3 Acquired 49,100 SUNWAY REIT

EPF 25/3 Acquired 6,600 POS MALAYSIA

Skim Amanah Saham Bumiputera 24/3-25/3 Acquired 2,297,100 SUNWAY REIT

Skim Amanah Saham Bumiputera 23/3 Acquired 1,704,400 AXIATA GROUP

Kumpulan Wang Persaraan 23/3 Acquired 52,500 TIME DOTCOM

Kumpulan Wang Persaraan 24/3 Acquired 24,300 WCT HOLDINGS

Genesis Investment Management, LLP 27/3 Acquired 122,200 7-ELEVEN MALAYSIA

Aberdeen Asset Management PLC 25/3-26/3 Acquired 503,500 AEON CO. (M)

Aberdeen Asset Management PLC 25/3-26/3 Acquired 29,000 ORIENTAL HOLDINGS

Mitsubishi UFJ Financial Group, Inc 24/3 Acquired 196,000 AEON CO. (M)

Mitsubishi UFJ Financial Group, Inc 24/3 Acquired 4,300 BAT

Mitsubishi UFJ Financial Group, Inc 24/3 Acquired 24,800 CIMB GROUP

Mitsubishi UFJ Financial Group, Inc 24/3 Acquired 15,000 ORIENTAL HOLDINGS SOURCES: BMSB

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BMSB: ESOS & others

31-Mar-15 No Of New Shares Date of Listing Nature of transaction

BERJAYA FOOD 163,360 31-Mar-15 Exercise of ESOS

SUNWAY BERHAD 91,835 31-Mar-15 Exercise of Warrants-16 SOURCES: BMSB

BMSB: Off-market transactions

30-Mar-15 Vol

IGB 8,200,000

YNHPROP 3,600,000

YINSON 3,400,000

RAPID 2,001,500

BIOSIS 2,000,000

APEX 1,500,000

EDEN 1,000,000

MEDAINC 1,000,000

K1 600,000

GCB 585,000 Notes:CN-Crossing deal on board lots, MN-Married deal on board lots, MO-Married deal on odd lots

SOURCES: BMSB

BMSB: Dividends

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

BURSA MALAYSIA Final dividend - single tier 18.00 3-Mar-15 1-Apr-15 3-Apr-15 16-Apr-15

BERJAYA SPORTS TOTO Third interim dividend - single tier 5.00 18-Mar-15 6-Apr-15 8-Apr-15 28-Apr-15

BERJAYA FOOD Second interim dividend - single tier 1.25 10-Mar-15 8-Apr-15 10-Apr-15 23-Apr-15

UMW HOLDINGS Third interim dividend - single tier 16.00 24-Mar-15 9-Apr-15 13-Apr-15 24-Apr-15

ASTRO MALAYSIA Fourth interim dividend - single tier 2.25 30-Mar-15 10-Apr-15 14-Apr-15 29-Apr-15

MY E.G. SERVICES First interim dividend - single tier 0.50 27-Feb-15 22-Apr-15 24-Apr-15 21-May-15

CARLSBERG Final + Special - single tier 66.00 27-Feb-15 30-Apr-15 5-May-15 20-May-15

NESTLE (MALAYSIA) Final dividend - single tier 175.00 23-Feb-15 11-May-15 13-May-15 27-May-15

BINTULU PORT Final + Special - single tier 6.0 + 3.0 17-Feb-15 13-May-15 15-May-15 29-May-15

TASEK CORPORATION Final + Special - single tier 30.0 + 50.0 17-Feb-15 13-May-15 15-May-15 29-May-15

GAS MALAYSIA Final + Special - single tier 4.06 12-Mar-15 20-May-15 22-May-15 12-Jun-15

MAXIS  Final + Special - single tier 8.00 27-Mar-15 27-May-15 29-May-15 26-Jun-15

IHH HEALTHCARE 1st & final interim dividend - single tier 3.00 30-Mar-15 1-Jul-15 3-Jul-15 22-Jul-15 SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

31-Mar-15 Ann Date Proposed

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

MAH SING GROUP 20-Nov-14 Bonus issue 1:4

AIRASIA X 30-Nov-14 Rights issue of RM0.15 with free detachable warrants

KAREX 26-Feb-15 Bonus issue 1:2

WCT HOLDINGS 16-Mar-15 Rights issue 1:10; Bonus issue of Warrants 1:5 existing shares held SOURCES: BMSB

BMSB: New Listing

Company Issue price Listing sought Tentative

Public Issue Offer for sale Private placement listing date

BIOALPHA HOLDINGS 0.20 20,000,000 - 80,000,000 ACE Market 14-Apr-15

No of shares

SOURCES: BMSB

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Corporate Actions

March 2015

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7

Star analyst briefing BNM OPR Exports, Imports Trade Balance, Foreign Reserves

8 9 10 11 12 13 14

Berjaya Auto 3Q Berjaya Food 3Q SP Setia 1Q IPI, Manufacturing Sales

BIMB 4Q

15 16 17 18 19 20 21

Top Glove 2Q, B-Toto 3Q

Eco World 1Q CPI, Foreign Reserves (mid-month data)

22 23 24 25 26 27 28

Chempaka state seat by-election

SapuraKencana 4Q Gamuda 2Q

29 30 31

Astro 4Q & conf. call Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

April 2015

SUN MON TUE WED THU FRI SAT

1 2 3 4

Exports, Imports, Trade Balance

5 6 7 8 9 10 11

Foreign Reserves IPI, Manufacturing Sales

12 13 14 15 16 17 18

19 20 21 22 23 24 25

CPI, Foreign Reserves (mid-month data)

26 27 28 29 30

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Governance Report:

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

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

Description: Excellent Very Good Good N/A

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

Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (Thai IOD) in 2014.

AAV – Very Good, ADVANC – Very Good, AEONTS – not available, AMATA - Good, ANAN – Very Good, AOT – Very Good, AP - Good, ASK – Very Good, ASP – Very Good, BANPU – Very Good , BAY – Very Good , BBL – Very Good, BCH – not available, BCP - Excellent, BEAUTY – Good, BEC - Good, BECL – Very Good, BGH - not available, BH - Good, BIGC - Very Good, BJC – Good, BLA – Very Good, BMCL - Very Good, BTS - Excellent, CCET – Good, CENTEL – Very Good, CHG – not available, CK – Very Good, CPALL – not available, CPF – Very Good, CPN - Excellent, DELTA - Very Good, DEMCO – Good, DTAC – Very Good, EA - Good, ECL – not available, EGCO - Excellent, GFPT - Very Good, GLOBAL - Good, GLOW - Good, GRAMMY - Excellent, HANA - Excellent, HEMRAJ – Very Good, HMPRO - Very Good, ICHI - not available, INTUCH - Excellent, ITD – Good, IVL - Excellent, JAS – not available, JUBILE – not available, KAMART – not available, KBANK - Excellent, KCE - Very Good, KGI – Good, KKP – Excellent, KTB - Excellent, KTC – Good, LH - Very Good, LPN – Very Good, M - not available, MAJOR - Good, MAKRO – Good, MBKET – Good, MC – Very Good, MCOT – Very Good, MEGA – Good, MINT - Excellent, OFM – Very Good, OISHI – Good, PS – Very Good, PSL - Excellent, PTT - Excellent, PTTEP - Excellent, PTTGC - Excellent, QH – Very Good, RATCH – Very Good, ROBINS – Very Good, RS – Very Good, SAMART - Excellent, SAPPE - not available, SAT – Excellent, SAWAD – not available, SC – Excellent, SCB - Excellent, SCBLIF – Good, SCC – Very Good, SCCC - Good, SIM - Excellent, SIRI - Good, SPALI - Excellent, STA – Very Good, STEC - Good, SVI – Very Good, TASCO – Good, TCAP – Very Good, THAI – Very Good, THANI – Very Good, THCOM – Very Good, THRE – not available, THREL – Good, TICON – Good, TISCO - Excellent, TK – Very Good, TMB - Excellent, TOP - Excellent, TRUE – Very Good, TTW – Very Good, TUF - Good, VGI – Very Good, WORK – not available.

Daybreak│Malaysia

March 31, 2015

19

CIMB Recommendation Framework

Stock Ratings Definition:

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

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

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

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

Sector Ratings Definition:

Overweight An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation.

Neutral A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation.

Underweight An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation.

Country Ratings Definition:

Overweight An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark.

Neutral A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark.

Underweight An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark.

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