REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 2 March 2015

▌What’s on the Table…

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RHB Capital Bhd - A keen lender

RHBCap’s FY14 net profit was almost spot on with our forecast (99.6%) and in line with consensus (101%), but its full-year net DPS of 6 sen was way below our projected 23 sen. Even so, the company has maintained its policy of a 30% dividend payout that forms the basis for our DPS projection for FY15-17. Our DDM-based target price (COE of 11.8%; LT growth of 4%) is intact. RHBCap remains an Add and is our top pick for the sector, given its (1) robust loan growth, (2) continuous expansion of its investment banking (IB) business, (3) attractive valuation (CY15 P/E of 9.1x and P/BV of 1x), and (4) benefits from its IGNITE 17 transformation programme.

Asia File Corporation - Europe blues persist

Banks - Jan 15 tracker – a slow start to 2015

BIMB Holdings - A possible merger with MBSB?

Carlsberg Brewery (M) - Driven by strong 9M results

Cuscapi - Bleeding continues

Eastern & Oriental - Regaining lost ground in 4QFY15

Jaya Tiasa Holdings - Fingers burnt in 2Q

IJM Corp Bhd - All-time high order book

KPJ Healthcare - Healthy ending

Mudajaya Group - Raising the red flag for FY14

Muhibbah Engineering - US$ strength boost for cranes

MY E.G. Services - Just a slight delay

7-Eleven Malaysia Holdings Berhad - 100% dividend payout

Star Publications - Starting to shine

Supermax Corp - Higher costs and competition

TH Heavy Engineering - Heavy loss

Thong Guan Industries - Hit by provisions

Economic Update - Jan loan growth moderates

▌News of the Day…

—————————————————————————————————————————————————————————————————————— • Karex announced placement shares have been fixed at RM3.90 per share

• Star Publications proposing to change name to Star Media Group (Bernama)

• Malakoff received Bursa Securities' approval to be relisted on the Main Board

• Petronas posted RM7.3bn net loss in 4Q14 due to assets impairment losses

• Brahim agreed to 60% cut in payments withheld by MAS (RM94

• Japan’s housing starts decreased 13% yoy in Jan (-14.7% yoy in Dec)

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,650

1,700

1,750

1,800

1,850

1,900

Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15

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FBMKLCI

1821.21 0.34pts 0.02%Feb Futures Mar Futures

1823.5 - (0.27% ) 1826 - (1.00% )———————————————————————————

Gainers Losers Unchanged369 482 302

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Turnover2212.16m shares / RM2732.311m

3m avg volume traded 1770.61m shares

3m avg value traded RM1960.36m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,821 3,403 5,450 1,587 24,823 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,821.21 0.0 3.4

FBM100 12,233.95 0.1 3.6

FBMSC 16,620.80 (0.5) 10.5

FBMMES 6,634.74 (0.5) 17.4

Dow Jones 18,132.70 (0.4) 1.7

NASDAQ 4,963.53 (0.5) 4.8

FSSTI 3,402.86 (0.7) 1.1

FTSE-100 6,946.66 (0.0) 5.8

SENSEX 29,361.50 0.5 6.7

Hang Seng 24,823.29 (0.3) 5.2

JCI 5,450.29 (0.0) 4.3

KOSPI 1,985.80 (0.4) 3.7

Nikkei 225 18,797.94 0.1 7.7

PCOMP 7,730.57 (0.4) 6.9

SET 1,587.01 (0.4) 6.0

Shanghai 3,310.30 0.4 2.3

Taiwan 9,622.10 (0.8) 3.4————————————————————————————————

Close % chg Vol. (m)

NEXGRAM 0.105 16.7 163.7

WINTONI GROUP 0.200 2.6 94.6

HUBLINE BHD 0.025 (16.7) 86.1

DIVERSIFIED GATE 0.130 (7.1) 73.0

ETI TECH 0.085 13.3 66.1

TNB 14.720 1.5 46.0

PERISAI 0.655 (0.8) 36.4

DGB ASIA 0.140 (6.7) 33.2————————————————————————————————

Close % chg

US$/Euro 1.1185 (0.10)

RM/US$ (Spot) 3.6042 (0.04)

RM/US$ (12-mth NDF) 3.7154 0.02

OPR (% ) 3.24 0.00

BR (% , CIMB Bank) 4.00 0.00

GOLD ( US$/oz) 1,213.55 0.03

WTI crude oil US spot (US$/barrel) 49.76 3.30

CPO spot price (RM/tonne) 2,284.00 0.79

Market Indices

Top Actives

Economic Statistics

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

Show Style "View Doc Map"

Daybreak│Malaysia

March 2, 2015

2

Global Economic News

US gross domestic product (GDP) rose at a 2.2% qoq saar in 4Q14 (+2.6% qoq saar in previous estimate; +5% qoq saar in 3Q14).

Personal consumption was revised to 4.2% qoq saar (+4.3% qoq saar initially estimated). (Bloomberg, Financial Times, Reuters)

US consumer sentiment based on University of Michigan's final Feb reading was 95.4 (93.6 from initial reading; 98.1 in Jan). (Reuters)

The US Chicago purchasing manager’s index (PMI) fell to 45.8 in Feb (59.4 in Jan). (Bloomberg)

US pending home sales index rose 1.7% mom in Dec (-1.5% mom in Dec). (Reuters)

The US Federal Reserve Vice Chairman Stanley Fischer said raising rates at some point over the middle of the year isn’t set in stone.

He acknowledged broad-based expectations that the Fed will raise rates at either its Jun or Sep policy meetings, but added they could easily be foiled.

“We are getting closer” to rate rises, the official said. But he added “things could happen” that would change the calculus for rate rises. (WSJ)

US Federal Reserve Bank of New York President William Dudley said that while he sees no urgency to raise short-term interest rates, if unusually low bond yields don’t rise the central bank could be forced to act more aggressively when it does start the process of boosting borrowing costs.

“The fact that market participants have set forward rates so low has presumably led to a more accommodative set of financial market conditions, such as the level of bond yields and the equity market’s valuation, that are more supportive to economic growth,” he said. (WSJ)

Japan’s housing starts decreased 13% yoy in Jan (-14.7% yoy in Dec). Annualized housing starts slid to 864,000 in Jan (883,000 in Dec). Construction orders surged 27.5% in Jan (+7.5% in Dec). (RTT)

Japan’s seasonally adjusted unemployment rate rose 0.2% pts from the previous month to 3.6% in Jan (3.4% in Dec).

The number of jobless people after seasonal adjustment increased to 2.35m in Jan (1.65m in Dec). (Japan News)

Japan's factory production rose 4.0% mom in Jan (+0.8% mom in Dec). (Bloomberg)

Japanese retail sales fell 2.0% yoy in Jan (+0.2% yoy in Dec). (WSJ)

India’s government said that it would delay deficit-reduction plans to increase spending on infrastructure to help accelerate growth in Asia’s third-largest economy.

Daybreak│Malaysia

March 2, 2015

3

Finance Minister Arun Jaitley, presenting the national budget in Parliament, said the country would spend an additional INR700bn, or US$11bn, on roads, railways, ports and other projects next year. (WSJ)

India's Finance Ministry said that the country's economic growth could accelerate to as much as 8.5% in the coming fiscal year.

Officials cautioned, however, that recent changes in the way Indian-government statisticians estimate gross domestic product, which caused recent growth figures to be revised upward considerably, make it "difficult to objectively analyze" longer-term trends at present. (WSJ)

Australia’s total private sector credit increased by 0.6% mom in Jan (+0.5% mom in Dec). On a yearly basis, total credit growth came in at 6.2% yoy in Jan (+5.9% yoy in Dec). (The Australian)

China on 28 Feb cut interest rates for the second time in three months, adding to signs that Chinese leaders are worried that the economic slowdown is deepening too sharply.

The People's Bank of China (PBOC) announced a rate reduction on one-year loans by commercial banks by 25bp to 5.35%. The interest rate paid on a one-year deposit was lowered by 25bp to 2.50%. The new rates will take effect on 1 Mar. (Bangkok Post)

China’s official manufacturing PMI rose slightly to 49.9 in Feb (49.8 in Jan). Official nonmanufacturing PMI rose to 53.9 in Feb (53.7 in Jan). (WSJ)

China plans to collect capital gains taxes from foreign money managers that invested in mainland markets during the five years through Nov 2014. Authorities plan to collect the 10% tax on so-called QFII and RQFII funds. (WSJ)

South Korea exports declined 3.4% yoy in Feb (-0.7 % yoy in Jan) while imports declined 19.6% yoy in Feb ( -11.0% yoy in Jan), which brings the trade surplus to US$7.66bn in Feb ( US$5.40bn in Jan). (Reuters)

South Korea’s current account surplus hit US$6.94bn in Jan (surplus of US$7.02bn in Dec). The balance of goods reached a surplus of US$7.09bn in Jan (surplus of US$8.32bn in Dec). (Yonhap)

South Korea industrial output dropped 3.7% mom in Jan (+3.4% mom in Dec). Compared with a year earlier, output +1.8% yoy (+1.1% yoy in Dec). (Yonhap)

Thailand’s current-account surplus came in at US$2.5bn in Jan (surplus of US$5.5bn Dec). Exports fell 2.6% yoy in Jan (+2.3% yoy in Dec) while imports fell 14.8% yoy in Jan (-7.9% yoy in Dec), bringing the trade balance to a surplus of US$1.4bn in Jan (surplus of US$3.6bn in Dec). (Bloomberg, Bangkok Post)

Daybreak│Malaysia

March 2, 2015

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Thailand’s private consumption index fell 1.5% yoy in Jan (-0.8% yoy in Dec). The National Economic and Social Development Board expects household debt to rise to 87-88% of GDP this year. (Bloomberg, Bangkok Post)

Thailand’s manufacturing production index (MPI) fell 1.31% yoy in Jan (-0.08% yoy in Dec). (Bloomberg)

Malaysian Economic News

Broad money, or M3, the measurement of money supply, moderated to 6.1% yoy in Jan (+7.0% yoy in Dec), mainly driven by the extension of credit to the private sector by the banking system and higher net claims on the government.

Net financing to the private sector grew at a slower pace of 7.9% yoy in Jan (+8.8% yoy in Dec), amidst a moderation in the growth of both net issuances of private debt securities (PDS) and outstanding banking system loans.

While the growth of outstanding business loans moderated during the month, the central bank said the level of loans disbursed to businesses continued to remain healthy.

The level of net impaired loans was sustained at 1.2% of net loans, while the loan loss coverage ratio remained above 100%. (Bernama)

Kindly refer to our Economic Update for further details

Motorists will pay 25 sen more for RON95, RON97 and diesel from 1 Mar. The retail price for both RON95 and diesel is now at RM1.95 – up from RM1.70 – while RON97 is now RM2.25, up from RM2.00. (Star)

The National Price Reduction Campaign 2015, which begins 1 Mar, will proceed despite the hike in fuel prices. Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek said fuel prices were not the only factors that determined the price of goods. (Star)

The Goods and Services Tax (GST) registration comes to a close at midnight 28 Feb.

Those having failed to register face a RM15,000 compound and be forcibly registered, said the Royal Customs Department in a statement.

A crackdown under "Ops GST" will begin on 1 Mar, with about 5,000 officers deployed, the department added.

As of 27 Feb, 325,279 companies had registered for the GST. (Bernama)

The ASEAN SME Showcase and Conference in Kuala Lumpur from 26-28 May is the best platform for small medium entrepreneurs (SMEs) to explore regional opportunities following the realisation of the ASEAN Economic Community (AEC), Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said.

He said the event will also expose local SMEs to the success of other Malaysian companies that have successfully penetrated the ASEAN market.

"This is to ensure the SMEs can expand overseas and enhance our trade and investments," he added. (Bernama)

Daybreak│Malaysia

March 2, 2015

5

Penang recorded investments worth RM8.2bn in 2014, a 109% increase over the 2013's volume, Chief Minister Lim Guan Eng said.

Describing it as a good result, he said the investments comprised RM3.05bn in domestic investments and RM5.1bn in foreign investments.

He said with this accomplishment, Penang ranked third after Johor and Sarawak in bringing investments last year. (Bernama)

ASEAN senior officials have expressed confidence that the draft of the Post-2015 Economic Vision and Plan would be completed by the middle of the year.

International Trade and Industry Deputy Secretary-General (Trade) Mohd Rizal Sheriff said the draft would spell out a new and bold plan to chart the direction for deeper regional integration for the 2016-2025 period.

He said the discussion on the preparation of the draft was progressing well and the commitment from the 10 member countries were very strong. (Bernama)

Malaysia has proposed to implement several infrastructure projects in Sri Lanka under a government-to-government understanding which, among others, include the Colombo City Monorail by Scomi International, oil pipeline, highways, and housing development.

This was discussed by Datuk Seri S. Samy Vellu, The Special Envoy for Infrastructure to India and South Asia during his meeting with Sri Lankan Prime Minister Ranil Wickramasinghe in Colombo.

He said many Malaysian companies were very keen to participate in Sri Lanka's infrastructure development especially after the new government came to power in Jan. (Bernama)

Malaysia's domestic Producer Price Index (PPI) for Jan 2015 eased 0.4% mom to 104.9 from 105.3 in Dec 2014.

"The decrease in the overall index was mainly due to the negative changes in two categories -- mining (-10.0%) and electricity and gas (-0.6%). However, the index for agriculture went up by 4.7%, manufacturing (+0.3%) and water supply (+0.3%)," the Statistics Department said in a statement.

Year-on-year, the domestic PPI decreased 4.8% with the local production index moving down 7.0% while the import price index slipped 0.2%.

Three commodity sections recorded lower indices -- mineral fuels, lubricants (-10.6%), animal and vegetable oils and fats (-2.9%) and chemicals (-0.1%).

In contrast, crude materials, inedible posted an increase (+3.7%), as did miscellaneous transactions and commodities (+4.8%), food (+1.5%), miscellaneous manufactured articles (+1.3%), manufactured goods (+0.4%) and beverages and tobacco (+0.1%). (Bernama)

The Malaysian External Trade Development Corporation (Matrade) will continue to take advantage of FOODEX 2015 in Japan to highlight "Made-In-Malaysia" food and beverage (F&B) products in East Asia and the international market.

Backed by strong demand from previous trade fairs, Matrade's national pavilion will showcase 24 Malaysian exporters who will capitalise on the abundance of opportunities offered by the Japanese market, particularly for health-related products.

Daybreak│Malaysia

March 2, 2015

6

Japan's F&B and supplements market is worth a whopping RM65.7bn. Malaysia's exports of processed foodstuff to Japan improved 32.7% to RM620.3m in 2014 from RM467.4m recorded in 2013. (Bernama)

The people of Selangor have been assured that no water rationing will be implemented in the state during the current hot and dry weather. Menteri Besar Mohamed Azmin Ali said the State Economic Action Council would discuss alternative measures that needed to be taken to avoid water rationing. (Bernama)

ASEAN economic ministers (AEM) on 1 Mar wrapped up their two-day retreat with a steady progress made towards implementing the ASEAN Economic Community (AEC) Blueprint, particularly key measures prioritised by member states.

As the regional grouping moves towards the tail-end of the AEC implementation, it has progressively removed trade obstacles such as Non-Tariff Barriers (NTB), which are a clear impediment towards the realisation of the AEC.

"There are a number of highlights (achieved) during this retreat. We'd talked about NTBs, listened to reports on the progress of the economic integration, and spent a lot of time on the Regional Comprehensive Economic Partnership (RCEP)," International Trade and Industry Minister Datuk Seri Mustapa Mohamed said on the final day of the two-day 21st ASEAN Economic Ministers' Retreat (AEM). So far, ASEAN managed to settle 45 NTBs out of 69 identified, he added.

Meanwhile, in a joint statement issued after the retreat, ASEAN has put in place legal structures on competition, consumer protection and intellectual property, contributing to an improved environment for business.

They concluded that the focus for this year would be on further simplification of Customs procedures, harmonisation of standards, liberalisation of services and trade facilitation, as well as, conclusion of the services and investments portion of the ASEAN-Japan Comprehensive Economic Partnership.

Among outstanding issues yet to be finalised are those on trade in goods, trade in services and investment. (Bernama)

Singapore has refuted a claim that it has been delaying decision on alignment for the Rapid Transit System (RTS) link, saying it has yet to receive an official confirmation of the location of Malaysia's RTS terminus in Johor Baharu.

"Singapore remains committed to working closely with Malaysia on the RTS link, which will provide a boost to cross-border connectivity," the Ministry of Transport (MOT) spokesperson added. (Bernama)

Datuk Seri Najib Tun Razak has outlined seven decrees that will make the Malays knowledgeable, empower their economy in the 21st century, and to make them strong, powerful and dignified.

The other decree is to champion the interests of Islam, defend the Malay rulers and Malay privileges, uphold maqasid syaria by being moderate, retain pure values and take care of the family institution.

Najib stressed that if the Malays hold on to the decrees, they will emerge as a race that is respected by all races of the world and become self-reliant. (Bernama)

Daybreak│Malaysia

March 2, 2015

7

Malaysia is reviving a proposal for ASEAN to have a common time zone.

A single time zone will not only allow business integration within the region but boost inbound trade and increase the spirit of oneness, said ASEAN Business Advisory Council Chairman Tan Sri Dr Mohd Munir Abdul Majid.

He said the single time zone would benefit the investment community as it would ensure all deals are be done at the same time. (Bernama)

Political News

Prime Minister Datuk Seri Najib has expanded on his decision to take legal action against PAS's Harakah Daily over a report linking his stepson to 1 Malaysia Development Bhd (1MDB), saying he would never allow public funds to be misused.

Najib wrote on Facebook to say that while he accepts criticism as prime minister, he will not stand idly by when unfounded allegations are aimed at his family. "I am aware of various allegations linking me and my family to 1MDB. "I would like to emphasise here that 1MDB is a strategic investment firm owned by the government of Malaysia, and I would never allow anyone to use or divert public funds for their personal gain," Najib wrote.

Earlier, he defended his decision to take legal action against Harakah Daily by saying that he did so because the PAS mouthpiece defamed his family. The prime minister also said it was his right to defend himself as well as his family against the "defamatory and completely untrue" report that was not substantiated with evidence.

The Harakah article had questioned how Najib's stepson Riza sourced funds to finance his company's (Red Granite Productions) 2013 film "The Wolf of Wall Street", and had alluded to a connection between 1MDB funds and said film. Najib is chairman of 1MDB's board of advisors. (Malay Mail)

Datuk Seri Najib Razak's approval rating as prime minister fell again in the latest Merdeka Center survey, dropping four percentage points to 44% in January. According to the independent pollster, the latest decline in Najib's support was rooted in Malaysia's lagging economy, as well as the impending implementation of a new consumption tax in April.

"The negative sentiments were largely driven by economic factors, such as concerns over high cost of living, the general condition of the economy, as well as concerns over the impact of the upcoming implementation of the Goods and Services Tax (GST) on the public," Ibrahim Suffian, who heads Merdeka Center, said.

In the previous edition of the survey last October, Najib recorded a positive rating of 48%, down from 54% in August and his personal best of 72% in May 2010. According to the latest poll, the Chinese were the least satisfied with Najib, recording an 18% approval rating, while the Indians and Malays registered approval ratings of 44% and 58% respectively.

A total of 43% were dissatisfied or angry with the government, while 38% said they were happy with its performance. Only about one in 10 Chinese respondents, or 11%, expressed happiness with the government, compared to 34% of Indians and 52% of Malays.

Almost half of participants, or 47%, believed that the country was headed in the wrong direction, citing high living costs and an unfavourable economy. "Other reasons driving negative perceptions about the country's direction includes perceived poor administration and continued racial polarisation in society," said Ibrahim. (Malay Mail)

Daybreak│Malaysia

March 2, 2015

8

Corporate News

Karex announced that the issue price for the placement shares have been fixed at RM3.90 per share and 40.5m shares were successfully placed to identified places to raise gross proceeds of RM158m. The issue price represents a discount of approximately 4.6% to the 5-day VWAP of RM4.09.

Comments: This will raise its net cash from RM22.6m (as at end-Dec 2014) to RM180.6m and dilute our FY15-17 EPS forecasts by ~8%. We believe Karex is one step closer to finalising acquisition deals to expand its OBM business.

CIMB Group Holdings is facing further headwinds this year with its aggressive cost management focus and a shift back to conventional banking. “The growth prospects for emerging markets are softer this year and we are making 2015 a year of recalibration with the T18 initiatives providing a platform to make some difficult decisions to streamline operations, implement management and organisational changes to future proof CIMB. Costs will be a primary focus and we have started to streamline our operations and align our cost structures with market realities,” group chief executive officer Tengku Datuk Zafrul Aziz said. (Financial Daily, StarBiz)

Hong Leong Bank Bhd (HLB) is unperturbed by the 29% plunge in its non-interest income in the first six months ended 31 Dec 2014. The bank is optimistic that its portion of the non-interest income will improve in the current year and position it for better earnings growth. HLB group managing director and CEO Tan Kong Khoon said: "We will continue to drive growth in fee income, driven by expansion in transactional banking and wealth management. In view of the volatility in the capital market, treasury activities might remain subdued, but positively, the franchise portion of the treasury operation is growing healthily." (StarBiz)

Eastern & Oriental (E&O) will award a tender for the RM25bn Phase 2 of the Seri Tanung Pinang (STP2) reclamation project by July. Seven contractors have been shortlisted for the proposed reclamation project. E&O deputy MD Eric Chan said the group will select the successful bidder after the seven companies shortlisted submit their formal tender documents by the end of this month. (Financial Daily)

Felda Global Ventures Holdings (FGV) is believed to be in the midst of finding a solution to improve the terms of its land lease agreement (LLA) with the Federal Land Development Authority (Felda) which has distorted the calculation of its profits, say sources. Under the LLA agreement signed in 2012, FGV has to pay Felda a fixed amount of RM250m per year in cash for 20 years and a 15% share of operating profit from the sales of fresh fruit bunches derived from the estate land leased from Felda.

From a business perspective, sources says the LLA business model is working well at the FGV group’s operational level. However, the LLA factor in practice is distorting and complicates the fair value accounting treatment on FGV, which saw its profits pulled down in its recent financial year results.

“Hence, FGV is trying to work out with Felda on how to make it easier for the LLA fair value change calculation to be done and better reflect on the operational profits based on measures taken by the FGV group since 2012,” adds the source. (StarBiz)

Daybreak│Malaysia

March 2, 2015

9

Domestic Trade, Cooperatives and Consumerism minister Datuk Seri Hasan Malek was full of praises for Nestle (Malaysia)'s conscientious initiative to bring down prices of its products and called on others to emulate the move. He said Nestle's proactive step to offer consumers a price reduction of between 8-33% under a Good Value For Money campaign was laudable and a move in the right direction to enrich the lives of consumers by offering high-quality products at the most affordable prices.

Meanwhile, Nestle MD Alois Hofbauer said Nestle was dedicated to rewarding consumers with greater value and would continue to do it with attractive promotions and campaigns throughout the year. (Bernama)

Star Publications (Malaysia) Bhd is proposing to change its name to Star Media Group Bhd. (Bernama)

MMC Corp's 51%-owned unit, Malakoff Corp, has received Bursa Securities' approval to be relisted on the Main Market of Bursa Malaysia. (Bernama)

Petronas Dagangan is once again the official fuel provider for the five-day Langkawi International Maritime and Aerospace Exhibition (LIMA'15), starting 17 Mar. This is the 10th year that Petronas Dagangan is continuing its sponsorship of the exhibition which has so far confirmed the participation of 502 exhibitors from 36 countries. (Bernama)

Oil palm plantations have been unfairly implicated by non-government organisations as the primary driver of deforestation, but the crop takes up only 0.1% or 15.6m ha worldwide. On the other hand, the livestock industry in 2012 utilised 31% or 4.7bn ha of the world’s total land area – 300 times more land area than that used by the palm oil industry, says Malaysian Palm Oil Council chief executive officer Tan Sri Dr Yusof Basiron. (StarBiz)

The Sabah state government is always in support of private sector initiatives or private companies keen on setting up more palm oil mills. State Minister of Youth and Sports Datuk Tawfiq Abu Bakar Titingan said the presence of more such mills will encourage healthy competition among the owners. "The competition will lead to an improvement in product quality, services, skills and technology expansion, while offering competitive pricing. "Planters and oil palm smallholders can choose mills that offer the best pricing and services," he added. (Malaysian Insider)

The medical and health charges imposed by government hospitals and clinics in Malaysia are the cheapest in the world. Prime Minister Datuk Seri Najib Abdul Razak said Putrajaya which allocates large amount of money to provide health service facilities also imposed the lowest fees in the world on patients. "When an outpatient sees a doctor, the person needs only pay RM1, while a fee of RM5 is charged if he or she goes to a specialist doctor, and medicine is given free," he said last Friday. (Sun)

Oil & gas-related industries are proving a boon for Labuan in making it an attractive destination for investors. With more than 120 local and international oil & gas players operating on the island, the sector will be developed further, says Federal Territories Minister, Datuk Seri Tengku Adnan Tengku Mansor. He said to realise the objective - Labuan as an oil & gas hub -, the Industrial Training Institute (ITI) Labuan campus had introduced an oil & gas preparatory programme. (Bernama)

Daybreak│Malaysia

March 2, 2015

10

Petroliam Nasional Bhd (Petronas) posted net losses of RM7.3bn in 4Q14 due to significant assets impairment losses recognised as a result of reduced crude oil price forecasts as well as lower revenue generated for the quarter. This was the first quarterly loss for the national oil corporation since it adopted the quarterly reporting format five years ago. Petronas said the impairments totalled RM22.6bn, which was a non-cashflow item, due to value of assets changing. Its revenue for 4Q14 was RM79.4bn, a decline of 6% from the RM84.8bb in 4Q13.

For the financial year ended 31 Dec 2014, Petronas posted lower net profit of RM47.6bn, down 27% from RM65.6bn in FY13, primarily due to the significantly higher assets impairment losses recognised and higher net depreciation and amortisation expenses in 2014. EBITDA for the year was RM125.3bn, an increase by RM1.9bn compared to 2013. (StarBiz)

Petronas has brushed aside a report that it would be laying off staff in an effort to cut operational expenditure by 20% this year. On the contrary, excess manpower in certain areas will be redeployed to projects that require a new staff intake, Petronas president and CEO Tan Sri Shamsul Azhar Abbas said. Describing the report as ridiculous, he said Petronas' mega projects like RAPID still needed manpower. He said the procurement of technology and recruitment of project staff have not even started. "So, it's not going to take place over the next five years. For that, we do not see a staff cut, we still need them (for the projects)," he said. (Bernama)

The Immigration Department is putting an end to cash transactions at its counters by the end of the year. The move is among its measures to be more client-friendly, to eradicate corruption and strengthen the integrity of the department. Immigration director-general Datuk Mustafa Ibrahim said all cash payments would be replaced with online payments. Among the categories that involve cash transactions currently are getting a foreign worker’s permit, passport – new and renewals, visa, expatriate pass, PR pass, border pass and a student pass. He said the public would have the option of making online payments or paying by bank draft and maybe through vending machines located at Immigration offices. If the online system could not be fully implemented by the end of the year, Mustafa said the department would install vending machines as a final option. (StarBiz)

RGB International Bhd expects to increase the number of gaming machines it is supplying on a concession basis in the Asean region to over 7,000 this year from 6,300 in 2014. This is in line with the group’s objective for the concession business segment to contribute about 60% of its net profit for 2015 compared with about 50% in 2014.Group managing director Datuk Chuah Kim Seah told StarBiz that the group’s expansion plans for the Philippines and other countries in the region would help the group boost its concession business.

Under the concession agreement with gaming hall operators, RGB effectively leases out the machines to the operators and in return gets a share of the profits and also is responsible for maintenance.

This gives it a recurring income as opposed to the outright sales of the machines. Moving forward, Chuah said RGB would spend RM3m to expand its facility in Seberang Prai at the end of this year. “This will double the production capacity. At present, we are able to manufacture 300 gaming machines per year.” (StarBiz)

Christoph R. Mueller faces a daunting week ahead of him when he assumes his role as the new CEO of ailing flag carrier Malaysia Airlines (MAS), just days shy of the one year anniversary to Flight MH370’s disappearance. UK newspaper The Independent said in a report that Mueller’s to-do list will be

Daybreak│Malaysia

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“unappetising”, as he not only has to restore public confidence in the airline but will also have to cut jobs as part of the airline’s restructuring plan.

“Next weekend, he (Mueller) and his airline will be in a media spotlight as the world remembers MH370. That experience will be repeated in July, a year after the downing of MH17. While his staff grieve for lost colleagues, he knows that many of them will also lose their jobs as the airline ‘restructures’,” the UK paper said.

“You’d imagine Mr Mueller would want to take Aer Lingus to the next flight level. Instead, his successor, Stephen Kavanagh, takes over in Dublin while he packs for a flight to South East Asia — to take on the least-appealing aviation chief executive role of 2015: boss of Malaysia Airlines,” it added. (Malay Mail)

PetroSaudi International has stated categorically that all funds from 1Malaysia Development Bhd (1MDB) went to Petrosaudi-owned entities and any other inference is false. The company said this in response to certain media reports that it claimed, had made malicious and harmful allegations, in respect of its partnership with 1MDB. “Upon 1MDB’s exit, PetroSaudi had paid 1MDB in full and both parties no longer have any financial or legal relationship,” the privately-owned oil exploration and production company said . (BT)

Businessman Low Taek Jho (Jho Low) orchestrated a 2009 joint venture between 1Malaysia Development Bhd and PetroSaudi International Ltd to alledgely siphon off US$700m from the strategic development fund, whistleblower website Sarawak Report has claimed. The UK-based website revealed tha the 1MDB-PetroSaudi JV company's US$700m loan repayment to PetroSaudi in 2009 was a front, and the funds were channelled to a firm called Good Star Ltd, allegedly owned by Low. The US$700m loan repayment provision was part of the JV contract between PetroSaudi and IMDB, Sarawak Report said, citing documents it had obtained. (Financial Daily)

Brahim's Holdings Bhd has agreed to a 60% cut in payments withheld by Malaysian Airline Systems Bhd (MAS) amounting to RM94.03m, and a 25% reduction in its final monthly bill, in a settlement agreement (SA) between Brahim's and MAS, which it said is the "only option" for it to maintain its role as an inflight meals caterer to MAS. The signing of the SA marks a significant milestone in MAS' journey to renegotiating its supplier contracts, which have long been blamed for contributing to its high cost structure. (Sun)

Qualitas Healthcare Corp Bhd will make a decision this week regarding the optimum route that will benefit its business ,either via an initial public offering exercise to raise funds, or to sell its business outright to other healthcare groups, according to source close to the matter. Contrary to earlier news reports that talks to sell its business have hit a snag, the source maintains that Qualitas is still in active negotiations with no fewer than three bidders for its business. (Financial Daily)

Cautious sentiment among advertisers saw advertising expenditure (adex) contracts 5.4% year-on-year in January to RM1.05bn from RM1.11bn in the previous corresponding period. The slump in oil price and weakening ringgit against the US$ had had an impact on sentiment, said Association of Accredited Advertising Agents Malaysia (4As) president Datuk Johnny Mun.

In terms of advertising medium, only in-store media registered year-on-year growth, according to data by Nielsen. Mun reckoned that marketers had been putting more money into trade to-push-merchandise. (StarBiz)

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BMSB: Changes in shareholdings

Type of No of Ave Price

27-Feb-15 Date transaction securities Company (RM)

EPF 17/2-23/2 Disposed 9,947,000 AXIATA GROUP

EPF 24/2 Disposed 7,000,000 TELEKOM MALAYSIA

EPF 18/2-24/2 Disposed 6,253,400 TENAGA NASIONAL

EPF 24/2 Disposed 5,000,000 DIALOG GROUP

EPF 24/2 Disposed 3,492,200 DIGI.COM

EPF 24/2 Disposed 2,390,600 SAPURAKENCANA PETROLEUM

EPF 24/2 Disposed 2,128,800 IOI CORPORATION

EPF 24/2 Disposed 1,926,300 SIME DARBY

EPF 24/2 Disposed 1,327,500 MAH SING GROUP

EPF 24/2 Disposed 980,100 IOI PROPERTIES GROUP

EPF 24/2 Disposed 826,500 MAXIS

EPF 24/2 Disposed 796,300 AFG

EPF 24/2 Disposed 630,600 CAHYA MATA SARAWAK

EPF 24/2 Disposed 532,100 IHH HEALTHCARE

EPF 24/2 Disposed 500,000 FELDA GLOBAL VENTURES

EPF 24/2 Disposed 500,000 YTL CORPORATION

EPF 24/2 Disposed 425,200 HARTALEGA HOLDINGS

EPF 24/2 Disposed 391,100 GENTING PLANTATIONS

EPF 24/2 Disposed 300,000 SUNWAY BERHAD

EPF 24/2 Disposed 295,200 IJM PLATATIONS

EPF 24/2 Disposed 60,000 AEON CO. (M)

EPF 24/2 Disposed 53,800 PETRONAS GAS

EPF 24/2 Disposed 28,000 SHELL REFINING

EPF 24/2 Disposed 19,900 HONG LEONG BANK

Skim Amanah Saham Bumiputera 23/2-25/2 Disposed 1,514,100 LAFARGE MALAYSIA

Skim Amanah Saham Bumiputera 23/2-24/2 Disposed 1,016,400 MALAYSIA AIRPORTS

Skim Amanah Saham Bumiputera 23/2-24/2 Disposed 277,800 KLCC PROPERTY

Skim Amanah Saham Bumiputera 23/2-24/2 Disposed 277,800 KLCC REIT

Kumpulan Wang Persaraan 24/2 Disposed 311,000 AXIS REIT

Kumpulan Wang Persaraan 24/2 Disposed 103,600 TOP GLOVE

Kumpulan Wang Persaraan 24/2 Disposed 100,000 FELDA GLOBAL VENTURES

Aberdeen Asset Management PLC 25/2 Disposed 54,900 BAT

Mitsubishi UFJ Financial Group, Inc 23/2 Disposed 1,010,000 POS MALAYSIA

Mitsubishi UFJ Financial Group, Inc 23/2 Disposed 61,000 BAT

Mitsubishi UFJ Financial Group, Inc 12/2 Disposed 15,300 GUINNESS ANCHOR

EPF 23/2 Acquired 4,000,000 CIMB GROUP

EPF 24/2 Acquired 1,669,500 BIMB HOLDINGS

EPF 24/2 Acquired 1,170,500 PUBLIC BANK

EPF 23/2-24/2 Acquired 786,800 UMW HOLDINGS

EPF 24/2 Acquired 627,300 KPJ HEALTHCARE

EPF 24/2 Acquired 577,000 SUNWAY REIT

EPF 24/2 Acquired 296,600 TOP GLOVE

EPF 24/2 Acquired 51,700 MBM RESOURCES

EPF 24/2 Acquired 21,200 TAN CHONG MOTOR

EPF 24/2 Acquired 14,800 IJM CORPORATION

EPF 24/2 Acquired 4,000 GAMUDA

EPF 24/2 Acquired 2,300 AMMB HOLDINGS

Skim Amanah Saham Bumiputera 23/2-25/2 Acquired 5,486,400 TELEKOM MALAYSIA

Kumpulan Wang Persaraan 23/2-24/2 Acquired 3,021,500 GAMUDA

Kumpulan Wang Persaraan 23/2-24/2 Acquired 1,082,400 WCT HOLDINGS

Kumpulan Wang Persaraan 23/2-24/2 Acquired 885,000 IJM CORPORATION

Kumpulan Wang Persaraan 24/2 Acquired 600,000 IGB REIT

Kumpulan Wang Persaraan 23/2-24/2 Acquired 424,900 PETRONAS GAS

Kumpulan Wang Persaraan 23/2-24/2 Acquired 111,200 PRESTARIANG

Kumpulan Wang Persaraan 23/2-24/2 Acquired 23,800 POS MALAYSIA

Mitsubishi UFJ Financial Group, Inc 23/2 Acquired 130,000 ORIENTAL HOLDINGS

WCT HOLDINGS 27/2 Shares Buy Back 200,000 WCT HOLDINGS 1.63

GENTING PLANTATIONS 27/2 Shares Buy Back 10,000 GENTING PLANTATIONS 10.40

SOURCES: BMSB

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BMSB: Off-market transactions

27-Feb-15 Vol

INARI-WB 13,221,276

NIHSIN 10,000,000

PELIKAN 10,000,000

IDMENSN 10,000,000

REX 2,238,687

TASCO 2,189,986

IMASPRO 2,100,000

SSTEEL 2,000,000

XINGHE 2,000,000

TMAKMUR 1,750,000

BARAKAH 1,650,000

PESONA-WC 1,005,000

BORNOIL 1,000,000

BJTOTO 1,000,000 Notes:CN-Crossing deal on board lots, MN-Married deal on board lots, MO-Married deal on odd lots

SOURCES: BMSB

BMSB: Entitlements & trading rights

2-Mar-15 Ann Date Entitlement Ex-date Entitlement

ECO WORLD 25-Apr-14 Rights issue 1:2 @ RM1.20, 4 Free Warrants : 5 rights shares 3-Mar-15 5-Mar-15 SOURCES: BMSB, TE: Tax Exempt

BMSB: Dividends

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

BAT Fourth interim dividend - single tier 78.00 16-Feb-15 2-Mar-15 4-Mar-15 26-Mar-15

HARTALEGA Second interim dividend - single tier 3.00 11-Feb-15 3-Mar-15 5-Mar-15 26-Mar-15

GAS MALAYSIA Second interim dividend - single tier 4.00 12-Feb-15 3-Mar-15 5-Mar-15 25-Mar-15

PETRONAS DAGANGAN Special dividend - single tier 22.00 12-Feb-15 3-Mar-15 5-Mar-15 27-Mar-15

IOI CORPORATION Interim dividend - single tier 4.50 13-Feb-15 3-Mar-15 5-Mar-15 13-Mar-15

PETRONAS GAS 3rd interim dividend - single tier 15.00 17-Feb-15 5-Mar-15 9-Mar-15 25-Mar-15

PETRONAS CHEMICALS Second interim dividend 8.00 18-Feb-15 5-Mar-15 9-Mar-15 24-Mar-15

HAP SENG PLANTATIONS Second interim dividend - single tier 5.00 23-Feb-15 6-Mar-15 10-Mar-15 25-Mar-15

PHARMANIAGA Fourth interim dividend - single tier 12.00 23-Feb-15 9-Mar-15 11-Mar-15 26-Mar-15

MAGNUM Forth interim dividend - single tier 5.00 13-Feb-15 10-Mar-15 12-Mar-15 27-Mar-15

HONG LEONG BANK Interim dividend - single tier 15.00 25-Feb-15 10-Mar-15 12-Mar-15 26-Mar-15

PRESTARIANG Interim dividend - single tier 0.50 25-Feb-15 10-Mar-15 12-Mar-15 26-Mar-15

JOBSTREET CORP Fourth interim dividend - single tier 1.75 25-Feb-15 10-Mar-15 12-Mar-15 27-Mar-15

HOVID Interim dividend - single tier 0.50 25-Feb-15 10-Mar-15 12-Mar-15 27-Mar-15

GENTING PLANTATIONS Special dividend - single tier 3.00 25-Feb-15 10-Mar-15 12-Mar-15 10-Apr-15

HEVEABOARD Interim dividend - single tier 1.50 25-Feb-15 11-Mar-15 13-Mar-15 10-Apr-15

7-ELEVEN MALAYSIA Final + Special - single tier 2.5 + 2.6 27-Feb-15 13-Mar-15 17-Mar-15 31-Mar-15

KPJ HEALTHCARE  Interim dividend - single tier 2.60 27-Feb-15 25-Mar-15 27-Mar-15 10-Apr-15

GUINNESS ANCHOR Interim dividend - single tier 20.00 5-Feb-15 27-Mar-15 31-Mar-15 22-Apr-15

STAR PUBLICATIONS Second interim + Special - single tier 6.0 + 3.0 27-Feb-15 27-Mar-15 31-Mar-15 17-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 SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

2-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 Private placement of up to 40.5m new shares, Bonus issue 1:2 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

SP Setia 1Q IPI, Manufacturing Sales

UEM Sunrise analyst briefing

15 16 17 18 19 20 21

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

22 23 24 25 26 27 28

Chempaka state seat by-election

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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CIMB Securities (Thailand) Co., Ltd. may act or acts as Market Maker and issuer including offering of Derivative Warrants Underlying securities of the following securities. Investors should carefully read and study the details of the derivative warrants in the prospectus before making investment decisions.

AAV, ADVANC, AMATA, ANAN, AOT, AP, ASP, BANPU, BAY, BBL, BCH, BCP, BEC, BECL, BGH, BH, BIGC, BJC, BJCHI, BLA, BLAND, BMCL, BTS, CENTEL, CK, CPALL, CPF, CPN, DCC, DELTA, DEMCO, DTAC, EARTH, EGCO, ERW, ESSO, GFPT, GLOBAL, GLOW, GUNKUL, HEMRAJ, HMPRO, INTUCH, IRPC, ITD, IVL, JAS, KBANK, KCE, KKP, KTB, KTC, LH, LOXLEY, LPN, M, MAJOR, MC, MCOT, MEGA, MINT, NOK, NYT, PS, PSL, PTT, PTTEP, PTTGC, QH, RATCH, ROBINS, RS, SAMART, SCB, SCC, SCCC, SIRI, SPALI, SPCG, SRICHA, STA, STEC, STPI, SVI, TASCO, TCAP, TFD, THAI, THCOM, THRE, THREL, TICON, TISCO, TMB, TOP, TPIPL, TTA, TTCL, TTW, TUF, UMI, UV, VGI, TRUE, WHA.

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.

The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CIMBS does not confirm nor certify the accuracy of such survey result.

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

Description: Excellent Very Good Good N/A

United Arab Emirates: The distributor of this report has not been approved or licensed by the UAE Central Bank or any other relevant licensing authorities or governmental agencies in the United Arab Emirates. This report is strictly private and confidential and has not been reviewed by, deposited or registered with UAE Central Bank or any other licensing authority or governmental agencies in the United Arab Emirates. This report is being issued outside the United Arab Emirates to a limited number of institutional investors and must not be provided to any person other than the original recipient and may not be reproduced or used for any other purpose. Further, the information contained in this report is not intended to lead to the sale of investments under any subscription agreement or the conclusion of any other contract of whatsoever nature within the territory of the United Arab Emirates.

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United Kingdom and Europe: In the United Kingdom and European Economic Area, this report is being disseminated by CIMB Securities (UK) Limited (“CIMB UK”). CIMB UK is authorised and regulated by the Financial Conduct Authority and its registered office is at 27 Knightsbridge, London, SW1X 7YB. This report is for distribution only to, and is solely directed at, selected persons on the basis that those persons: (a) are persons that are eligible counterparties and professional clients of CIMB UK; (b) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”); (c) are persons falling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Order; (d) are outside the United Kingdom; or (e) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with any investments to which this report relates may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This report is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this report relates is available only to relevant persons and will be engaged in only with relevant persons.

Only where this report is labelled as non-independent, it does not provide an impartial or objective assessment of the subject matter and does not constitute independent "investment research" under the applicable rules of the Financial Conduct Authority in the UK. Consequently, any such non-independent report will not have been prepared in accordance with legal requirements designed to promote the independence of investment research and will not subject to any prohibition on dealing ahead of the dissemination of investment research.

United States: This research report is distributed in the United States of America by CIMB Securities (USA) Inc, a U.S.-registered broker-dealer and a related company of CIMB Research Pte Ltd, CIMB Investment Bank Berhad, PT CIMB Securities Indonesia, CIMB Securities (Thailand) Co. Ltd, CIMB Securities Limited, CIMB Securities (Australia) Limited, CIMB Securities (India) Private Limited, and is distributed solely to persons who qualify as "U.S. Institutional Investors" as defined in Rule 15a-6 under the Securities and Exchange Act of 1934. This communication is only for Institutional Investors whose ordinary business activities involve investing in shares, bonds and associated securities and/or derivative securities and who have professional experience in such investments. Any person who is not a U.S. Institutional Investor or Major Institutional Investor must not rely on this communication. The delivery of this research report to any person in the United States of America is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein. CIMB Securities (USA) Inc, is a FINRA/SIPC member and takes responsibility for the content of this report. For further information or to place an order in any of the above-mentioned securities please contact a registered representative of CIMB Securities (USA) Inc.

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.

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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.