Malaysia Daybreak - 27 December

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1. Malaysia │Equity research│December 27, 2016 Malaysia Daybreak | Key Metrics FBMKLCI Index 27 December 2016 ▌News of the Day… 1,750 —————————————————————————————————————————————————————————————————————— 1,700 1,650 1,600 1,550 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 • Malaysia’s unemployment rate in Oct 16 was unchanged mom at 3.5% • Malaysia Vision Valley project is expected to be launched by 1Q17 • Sime Darby Property expects Malaysian property market to be soft next year • AirAsia is weighing a reverse takeover exercise to list some associate airlines • Tang family has raised the proposed takeover price for The Store to RM3.70 ——————————————————————————— 1,617.15 FBMKLCI -6.05pts -0.37% DEC Futures JAN17 Futures 1612 - (-0.59% ) 1619 - (-0.46% ) ——————————————————————————— Gainers Losers Unchanged 250 443 364 ——————————————————————————— Turnover 972.62m shares / RM1104.51m 3m avg volume traded 1447.52m shares 3m avg value traded RM1724.62m ——————————————————————————— Regional Indices FBMKLCI FSSTI JCI SET HSI 1,617 2,871 5,028 1,515 21,575 ———————————————————————————————— Market Indices Close % chg YTD % chg FBMKLCI 1,617.15 (0.4) (4.5) FBM100 11,037.21 (0.5) (3.8) FBMSC 14,637.84 (0.1) (8.2) FBMMES 4,758.62 0.4 (25.5) Dow Jones 19,933.81 0.1 14.4 NASDAQ 5,462.69 0.3 9.1 FSSTI 2,871.05 (0.4) (0.4) FTSE-100 7,068.17 0.1 13.2 SENSEX 25,807.10 (0.9) (1.2) Hang Seng 21,574.76 (0.3) (1.5) JCI 5,027.70 (0.3) 9.5 KOSPI 2,037.75 0.1 3.9 Nikkei 225 19,396.64 (0.2) 1.9 PCOMP 6,563.67 (0.4) (5.6) SET 1,515.23 0.3 17.6 Shanghai 3,122.57 0.4 (11.8) Taiwan 9,110.54 0.4 9.3 ———————————————————————————————— Top Actives Close % chg Vol. (m) BORNEO OIL 0.180 9.1 98.2 HIBISCUS 0.365 0.0 29.6 MQ TECHNOLOGY 0.050 (9.1) 28.5 TRIVE PROPERTY 0.090 0.0 21.8 ASIA BIOENERGY 0.055 10.0 17.8 IRIS CORP 0.115 0.0 14.2 FELDA GLOBAL VENTURES 1.530 (5.6) 12.7 KNM GROUP 0.335 0.0 12.2 ———————————————————————————————— Economic Statistics US$/Euro RM/US$ (Spot) RM/US$ (12-mth NDF) OPR (% ) BR (% , CIMB Bank) GOLD ( US$/oz) WTI crude oil US spot (US$/barrel) CPO spot price (RM/tonne) Close 1.0455 4.4742 4.5712 3.00 3.90 1,134.56 52.02 3,240.00 % chg (0.07) (0.06) (0.19) 0.00 0.00 (0.02) 0.13 0.00 ———————————————————————————————————————— Ivy NG Lee Fang, CFA T (60) 3 2261 9073 E ivy.ng@cimb.com Show Style "View Doc Map" IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. IF THIS REPORT IS DISTRIBUTED IN THE UNITED STATES IT IS DISTRIBUTED BY CIMB SECURITIES (USA), INC. AND IS CONSIDERED THIRD-PARTY AFFILIATED RESEARCH. Powered by the EFA Platform
2. Malaysia Daybreak │Equity research│December 27, 2016 Global Economic News The UK economy expanded 0.6% qoq in the three months to September, revised up from an earlier reading of 0.5%. But growth was revised down by 0.1% points in the first and second quarters of the year to 0.3% and 0.6% respectively. (Reuters) China 's leadership is signalling growth will slow slightly in 2017, policy advisers say, as it struggles to strike a balance between supporting the economy with loose credit conditions and preventing a destabilising build-up in debt. That means the interest rate easing cycle that began in Nov 2014 and saw six cuts by Oct 2015 is probably over, they say, particularly as investors are drawn to higher US interest rates and move money out of emerging markets including China. (Reuters) Bank of Japan Governor Haruhiko Kuroda defended his yield curve control policy, saying it had kept Japan’s long-term interest rates from joining the uptrend in global yields and was helping the economy overcome stagnation. The BOJ’s resolve to cap yields have been under test as Japanese long-term rates have risen in tandem with global bond yields. That in turn has led to some market expectations the BOJ may raise its yield target as early as next year. (Reuters) Japan’s cabinet approved a record US$830bn spending budget for fiscal 2017 that counts on low interest rates and a weak yen to limit borrowing, underscoring the challenge Tokyo faces in curbing the industrial world’s heaviest debt burden. The ¥97.5tr (US$830bn) general-account budget for the fiscal year starting on 1 Apr marks an increase of ¥733bn from this year’s initial plan due to a rising social security bill to fund the cost of services for a fast-ageing society. (Reuters) Malaysia Economic News Bank Negara Malaysia (BNM) and the Bank of Thailand, respectively signed memoranda of understanding (MoUs) with Bank Indonesia on a framework of cooperation to promote the settlement of bilateral trade and direct investment in their local currencies.  The framework will pave the way for wider usage of local currencies in the Asean Economic Community and spur further development of the regional foreign exchange and money markets, in support of wider economic and financial integration.  The enabling environment will benefit businesses by reducing transaction costs and enhancing efficiency of trade and investment settlements.  Amid the current volatile global financial market conditions, this will offer businesses more options in choosing currencies for trade settlement. (Edge Markets) Malaysia is set to pursue freetrade agreement (FTA) negotiations with Iran by the end of Jan next year, said Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong. Malaysia exported RM1.5bn worth of commodities to Iran in 2015 and the number was expected to reach RM1.6bn this year, he said, adding the FTA would provide a huge potential for Malaysian furniture and bedding products in the future. (Bernama) 2
3. Malaysia Daybreak │Equity research│December 27, 2016 Malaysia’s unemployment rate in Oct 16 was 3.5%, the same as in the previous month, but 0.2% pt higher than in Oct 15. (Bernama) Political News Kelantan Umno will focus on three 'grey' parliamentary constituencies in the state in preparation for the 14th General Election (GE14). State UMNO Liaison Committee chief Datuk Seri Mustapa Mohamed, who is also International Trade and Industry Minister, said the three grey areas were Bachok, Pasir Puteh and Machang, where the party lost by less than 1,000 votes in each. (Bernama) Communications and Multimedia Minister Datuk Seri Dr Salleh Said Keruak said former prime minister Tun Dr Mahathir Mohamad's statement that the 1Malaysia People's Air (BR1M) was tantamount to corruption was simply mind-boggling. Salleh said Malaysia had been dishing out welfare aid long before Dr Mahathir became prime minister in 1981. (Financial Daily) Remarks by Tun Dr Mahathir Mohamad that the 1Malaysia People's Aid (BR1M) scheme is a form of corruption is seen as emotional and full of hatred. Kedah Barisan Nasional (BN) Youth chief Datuk Shaiful Hazizy Zainol Abidin said they were insulting to the low income group (recipients) who need the financial aid to reduce the cost of living. Local media reported that Mahathir claimed that BR1M was a form of corruption, against the law and thus a crime. (Bernama) Corporate News The Malaysia Vision Valley project, seven years in the making, is expected to be launched by the prime minister by 1Q17. The massive project, which will be led by Sime Darby, is a public-private partnership development covering up to 108,000ha, sprawling from Nilai to Port Dickson, Negri Sembilan.  Sime Darby owns about 40% of the land. Previously known as Sime Darby Vision Valley, the project originally had an estimated gross development value of RM25bn to RM30bn. The project originally took up over 32,000ha and was to be developed over 20 years.  The project was revived when the prime minister, in the Budget 2016 announcement, said the government will develop Malaysia Vision Valley with an initial investment of RM5bn in 2016. Vision Valley is expected to generate investments of more than RM417.6bn by 2045, and is expected to see greater traction with the Kuala Lumpur-Singapore High Speed Rail, which will have one of its stops there. (The Sun) The Malaysian property market is expected to remain soft next year and developers will continue to review their launches, said Sime Darby Property managing director Datuk Jauhari Hamidi. While take-up rates used to be as high as 70-80% on launch day, Jauhari said, this only happens in selected launches today. Sime Darby Property averages 50-60%, although selective launches have seen take-ups beyond 90%, for example, Elmina Valley I and II, where buyers had to go through balloting.  “We expect next year to be soft also. It may start to pick up towards the end of 2017 or in early 2018.”  Jauhari said property developers should take the opportunity to review their launches within current market conditions, and look at how they can optimise their staff size and redeploy them to other activities to increase productivity. 3
4. Malaysia Daybreak │Equity research│December 27, 2016  “For us in the past, we would be issuing contracts worth about RM1.5bn to RM2bn for all the launches that we have. Now, we are holding back. The cake gets smaller and the pool of contractors that we have also will have to fight among themselves. (The Sun) The Federal Land Development Authority (FELDA)'s plan to acquire a 37% stake in Indonesia's PT Eagle High Plantation Tbk (EHP) will not affect the well-being of settlers. This is because the deal is a stand-alone investment with its own financing, while the US$505.4m (RM2.26bn) value is favourable with recent transactions involving an Indonesian palm oil company. "The deal will not impact FELDA's existing commitments and programmes to improve the wellbeing of the settlers," said FELDA. (Bernama) Raja Teh Maimunah Raja Abdul Aziz, currently the CEO of Hong Leong Islamic Bank Bhd (HLISB), will be joining the AmBank Group next year as the new CEO of AmInvestment Bank. Pushpa Rajadurai who is MD of Wholesale Banking at AmBank Group is currently the Acting CEO of AmInvestment Bank. In a text response to Business Times, Raja Teh confirms that she will be joining the group sometime next year, pending Bank Negara regulatory approval. (BT) AirAsia group is weighing a reverse takeover (RTO) exercise to fast-track the listing of some associate airlines, with a number of potential targets already identified on the Hong Kong Stock Exchange, sources say. The RTO path is one option being considered to list Indonesia AirAsia and Philippines AirAsia. However, a possible RTO in Indonesia's stock exchange to list IAA had not been completely dismissed either. The group ideally wants both affiliates listed by mid-2017. (Edge Weekly) The tender for the rolling stock for the third light rail transit (LRT3) project has seen only one party submit a bid that is causing a headache for the project delivery partner (PDP). MRCB George Kent Sdn Bhd, which is the PDP for LRT3, is said to be in a dilemma. Accepting the tender will mean that it has no wriggle room to determine if the tender for the rolling stock is what the “competitive price” should be. (StarBiz) The RM40bn construction cost of the Klang Valley MRT (KVMRT) project is 'no longer relevant' to be used for comparison as it was based on prices in 2009, said Mass Rapid Transit Corp (MRT Corp). Furthermore, the amount did not include electric trains, related systems and land acquisition, it said. (Bernama) Land acquisition for the Kuala Lumpur-Singapore high speed rail (HSR) project will most likely take place by 3Q17, following public display of the alignment by the middle of the year, said MyHSR Corporation Sdn Bhd. (StarBiz) Permodalan Nasional Bhd (PNB) chairman, Tan Sri Abdul Wahid Omar said the lower investment return for Amanah Saham Bumiputera (ASB) compared with the previous years is due to the effects of the uncertain global economy, but the rate is still competitive. PNB announced an income distribution of 6.75 sen a unit and bonus of 0.50 sen a unit for ASB for the financial year ending 31 Dec 16. (Bernama) 4
5. Malaysia Daybreak │Equity research│December 27, 2016 A rights issue or private share placements is on the cards at EG Industries Bhd as the company is seeking to beef up its financials to be on par with its peers "We need to conduct a corporate exercise soon to strengthen our financials because we are [relatively] small in terms of market capitalisation or paid-up capital," said its executive chairman Terence Teo Yeok Kian (Financial Daily) The Tang family, who has launched a bid to take The Store Corp Bhd private, has raised the takeover offer price to RM3.70 from RM3.52 previously. In a filing with Bursa Malaysia yesterday, The Store said the revised offer shall remain open for acceptances until 5pm on Jan 9, 2017 and all other terms and conditions as stated in the offer document shall remain unchanged.  The company added that for the avoidance of doubt, shareholders who have accepted the offer would be entitled to receive the revised offer price of RM3.70 per offer share under this new revised offer. (StarBiz) 5
6. Malaysia Daybreak │Equity research│December 27, 2016 BMSB: Changes in shareholdings 22-Dec-16 EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF Skim Amanah Saham Bumiputera Skim Amanah Saham Bumiputera Skim Amanah Saham Bumiputera Skim Amanah Saham Bumiputera Skim Amanah Saham Bumiputera Skim Amanah Saham Bumiputera Skim Amanah Saham Bumiputera Kumpulan Wang Persaraan Lembaga Tabung Haji Lembaga Tabung Haji Franklin Resources, Inc. NORGES BANK EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF EPF Skim Amanah Saham Bumiputera Skim Amanah Saham Bumiputera Skim Amanah Saham Bumiputera Kumpulan Wang Persaraan Kumpulan Wang Persaraan Lembaga Tabung Haji Lembaga Tabung Haji Lembaga Tabung Angkatan Tentera DATO LIM CHEE MENG DATO' SERI ROBERT TAN CHUNG MENG Mitsubishi UFJ Financial Group, Inc SUNWAY BERHAD 7-ELEVEN MALAYSIA BERJAYA FOOD BERHAD SIGNATURE INTERNATIONAL Date 19/12 19/12 21/11-19/12 19/12 15/12-16/12 19/12 19/12 19/12 19/12 16/12-19/12 19/12 19/12 19/12 19/12 19/12 19/12 19/12 19/12 19/12 19/12 19/12 19/12 19/12-20/12 19/12-20/12 19/12-20/12 19/12-20/12 19/12-20/12 19/12 20/12 15/12-16/12 19/12-21/12 15/12 19/12 13/12-20/12 20/12 19/12 16/12-19/12 19/12 19/12 19/12 19/12 13/12-19/12 19/12 19/12 19/12 19/12 19/12 19/12-20/12 19/12-20/12 20/12 15/12-16/12 16/12-20/12 19/12-21/12 21/12 14/12 20/12 20/12 16/12 22/12 22/12 22/12 22/12 Type of transaction Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Disposed Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Acquired Shares Buy Back Shares Buy Back Shares Buy Back Shares Buy Back No of securities 4,806,300 4,000,000 3,378,200 2,725,400 2,388,100 1,780,700 1,404,300 1,066,400 845,100 744,000 709,600 585,400 367,200 302,300 276,500 270,000 199,100 196,800 137,600 70,000 15,500 5,000 8,049,100 4,133,519 3,147,800 3,100,000 2,604,300 206,800 72,800 595,400 2,780,000 208,000 32,300 686,000 9,000,000 3,205,200 1,525,400 1,190,000 1,156,200 1,000,000 758,900 241,800 183,500 132,100 86,700 59,200 29,900 5,826,600 3,405,200 800,000 6,160,600 6,000,000 391,800 350,000 27,500 25,000,000 9,000,000 18,300 150,000 100,000 100,000 70,000 Ave Price Company (RM) SAPURAKENCANA PETROLEUM YTL CORPORATION PETRONAS GAS PUBLIC BANK SUNWAY REIT INARI AMERTRON PETRONAS CHEMICALS IJM CORPORATION IGB REIT GAMUDA MALAYAN BANKING TOP GLOVE AMMB HOLDINGS WCT HOLDINGS SASBADI HOLDINGS BURSA MALAYSIA SYARIKAT TAKAFUL MALAYSIA GENTING PLANTATIONS HONG LEONG BANK KUALA LUMPUR KEPONG PAVILION REIT DIGI.COM IJM CORPORATION S P SETIA BERHAD SIME DARBY MALAYAN BANKING MALAYSIA AIRPORTS FRASER & NEAVE ASIA FILE CORPORATION GAMUDA BIMB HOLDINGS MUHIBBAH ENGINEERING (M) 7-ELEVEN MALAYSIA BERJAYA FOOD BERHAD WAH SEONG CORPORATION S P SETIA DIALOG GROUP SIME DARBY IHH HEALTHCARE AIRASIA IOI CORPORATION KOSSAN RUBBER INDUSTRIES BIMB HOLDINGS BERMAZ AUTO MAH SING GROUP MAXIS UZMA BERHAD SUNWAY REIT KLCC PROPERTY MAXIS IGB REIT CAPITALAND MALAYSIA MALL TRUST GAMUDA IJM CORPORATION PHARMANIAGA BERHAD TALIWORKS CORPORATION WAH SEONG CORPORATION BAT SUNWAY BERHAD 2.97 7-ELEVEN MALAYSIA 1.40 BERJAYA FOOD BERHAD 1.58 SIGNATURE INTERNATIONAL 0.81 SOURCES: BMSB 6
7. Malaysia Daybreak │Equity research│December 27, 2016 BMSB: ESOS & others 26-Dec-16 SUNWAY LBS BINA GROUP LBS BINA GROUP TOP GLOVE CORP TOP GLOVE CORP TOP GLOVE CORP TOP GLOVE CORP No of new shares 100,000 95,200 30,000 21,200 16,800 15,000 200 Issue price 2.48 1.57 1.02 2.90 2.32 2.76 3.43 Date of Listing 23-Dec-16 23-Dec-16 23-Dec-16 23-Dec-16 23-Dec-16 23-Dec-16 23-Dec-16 Par value 1.00 1.00 1.00 0.50 0.50 0.50 0.50 Nature of transaction Exercise of ESOS Exercise of ESOS Exercise of ESOS Exercise of ESOS Exercise of ESOS Exercise of ESOS Exercise of ESOS SOURCES: BMSB BMSB: Proposed cash calls & trading of rights… 26-Dec-16 Ann Date ALLIANCE FINANCIAL 22-Sep-16 INARI AMERTRON 23-Nov-16 Proposed ABMB Bonus Issue Bonus Issue 1:1 SOURCES: BMSB BMSB: Entitlements & trading rights 26-Dec-16 Ann Date MY E.G. SERVICES 29-Aug-16 Entitlement Bonus issue 1:2 Ex-Date 28-Dec-16 Entitlement Date 30-Dec-16 SOURCES: BMSB, TE: Tax Exempt BMSB: Dividends Company UCHI TECHNOLOGIES BIMB HOLDINGS GAMUDA SYARIKAT TAKAFUL BERMAZ AUTO TOP GLOVE BERJAYA FOOD KUALA LUMPUR KEPONG Particulars Interim tax exempt dividend Interim dividend - single tier - Dividend Re-Investment Plan First interim dividend - single tier Interim dividend - single tier Second interim dividend - single tier Final dividend - single tier Second interim dividend - single tier Final dividend - single tier Gross DPS (Sen) 5.00 13.00 Ann Date 8-Dec-16 15-Dec-16 Ex-Date Lodgement 28-Dec-16 30-Dec-16 28-Dec-16 30-Dec-16 Payment 24-Jan-17 27-Jan-16 6.00 12.00 2.75 8.50 1.00 35.00 16-Dec-16 20-Dec-16 8-Dec-16 11-Nov-16 6-Dec-16 16-Nov-16 3-Jan-17 4-Jan-17 5-Jan-17 6-Jan-17 10-Jan-17 20-Feb-17 25-Jan-17 20-Jan-17 25-Jan-17 23-Jan-17 26-Jan-17 14-Mar-17 5-Jan-17 6-Jan-17 9-Jan-17 10-Jan-17 12-Jan-17 22-Feb-17 SOURCES: BMSB BMSB: New Listing Company FOUNDPAC GROUP HLT GLOBAL BERHAD MATANG BERHAD Issue price 0.54 0.45 0.13 Public Issue 40,000,000 39,591,000 130,000,000 No of shares Offer for sale 92,000,000 34,309,000 - Listing sought Private placement 103,000,000 58,701,000 - Main Market ACE Market ACE Market Tentative listing date 29-Dec-16 10-Jan-17 17-Jan-17 SOURCES: BMSB 7
8. Malaysia Daybreak │Equity research│December 27, 2016 Corporate Actions December 2016 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 Trade Balance Exports, Imports Foreign Reserves 8 9 IPI, Manufacturing Sales 10 11 12 The Prophet’s Birthday 13 14 15 Top Glove 1Q 16 17 18 19 20 21 Bison 4Q, CPI 22 Foreign Reserves (mid-month data) 23 24 25 Christmas Day 26 Replacement holiday 27 28 29 30 Money Supply 31 Source: Company, BNM, DOS, CIMB estimates SOURCES: Company, BNM, DOS, CIMB estimates 8
9. Malaysia Daybreak │Equity research│December 27, 2016 Corporate Actions January 2017 SUN MON TUE WED THU FRI SAT 1 New Year 2 New Year Holiday 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Chinese New Year 29 Chinese New Year, Day 2 30 Chinese New Year Holiday 31 Money Supply Source: Company, BNM, DOS, CIMB estimates SOURCES: Company, BNM, DOS, CIMB estimates 9
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12. Malaysia Daybreak │Equity research│December 27, 2016 Exchange Board of India (Research Analyst) Regulations, 2014 (SEBI Registration Number INH000000669) and in accordance with the provisions of Regulation 4 (g) of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, CIMB India is not required to seek registration with SEBI as an Investment Adviser. The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from equity stock broking and merchant banking of CIMB India and they have received compensation based upon various factors, including quality, accuracy and value of research, firm profitability or revenues, client feedback and competitive factors. 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13. Malaysia Daybreak │Equity research│December 27, 2016 described herein and may not be forwarded to the public in Sweden. Switzerland: This report has not been prepared in accordance with the recognized self-regulatory minimal standards for research reports of banks issued by the Swiss Bankers’ Association (Directives on the Independence of Financial Research). Taiwan: This research report is not an offer or marketing of foreign securities in Taiwan. The securities as referred to in this research report have not been and will not be registered with the Financial Supervisory Commission of the Republic of China pursuant to relevant securities laws and regulations and may not be offered or sold within the Republic of China through a public offering or in circumstances which constitutes an offer or a placement within the meaning of the Securities and Exchange Law of the Republic of China that requires a registration or approval of the Financial Supervisory Commission of the Republic of China. Thailand: This report is issued and distributed by CIMB Securities (Thailand) Company Limited (“CIMBS”) based upon sources believed to be reliable (but their accuracy, completeness or correctness is not guaranteed). The statements or expressions of opinion herein were arrived at after due and careful consideration for use as information for investment. 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AAV, ADVANC, AMATA, ANAN, AOT, AP, BA, BANPU, BBL, BCH, BCP, BDMS, BEAUTY, BEC, BEM, BH, BJCHI, BLA, BLAND, BTS, CBG, CENTEL, CHG, CK, CKP, COM7, CPALL, CPF, CPN, DELTA, DTAC, EGCO, EPG, ERW, GL, GLOBAL, GLOW, GPSC, GUNKUL, HANA, HMPRO, ICHI, IFEC, INTUCH, IRPC, ITD, IVL, JWD, KBANK, KCE, KKP, KTB, KTC, LH, LHBANK, LPN, MAJOR, MINT, MTLS, PLANB, PS, PTG, PTT, PTTEP, PTTGC, QH, ROBINS, RS, S, SAMART, SAWAD, SCB, SCC, SGP, SIRI, SPALI, SPCG, STEC, STPI, SVI, TASCO, TCAP, THAI, THCOM, TISCO, TMB, TOP, TPIPL, TRC, TRUE, TTA, TTCL, TTW, TU, TVO, UNIQ, VGI, VNG, WHA, WORK. 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: Description: 90 - 100 Excellent 80 - 89 Very Good 70 - 79 Good Below 70 or N/A No Survey Result 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. 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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 (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 13
14. Malaysia Daybreak │Equity research│December 27, 2016 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 2016, Anti-Corruption 2016. AAV – Very Good, n/a, ADVANC – Very Good, Certified, AEONTS – Good, n/a, AMATA – Excellent, Declared, ANAN – Very Good, Declared, AOT – Excellent, Declared, AP – Very Good, Declared, ASK – Very Good, Declared, ASP – Very Good, Certified, BANPU – Very Good, Certified, BAY – Excellent, Certified, BBL – Very Good, Certified, BCH – not available, Declared, BCP - Excellent, Certified, BEM – Very Good, n/a, BDMS – Very Good, n/a, BEAUTY – Good, Declared, BEC - Good, n/a, BH - Good, Declared, BIGC - Excellent, Declared, BJC – Good, n/a, BLA – Very Good, Certified, BPP – not available, n/a, BTS - Excellent, Certified, CBG – Good, n/a, CCET – not available, n/a, CENTEL – Very Good, Certified, CHG – Very Good, n/a, CK – Excellent, n/a, COL – Very Good, Declared, CPALL – not available, Declared, CPF – Excellent, Declared, CPN - Excellent, Certified, DELTA - Excellent, Declared, DEMCO – Excellent, Certified, DTAC – Excellent, Certified, EA – Very Good, Declared, ECL – Good, Certified, EGCO - Excellent, Certified, EPG – Good, n/a, GFPT - Excellent, Declared, GLOBAL – Very Good, Declared, GLOW – Very Good, Certified, GPSC – Excellent, Declared, GRAMMY - Excellent, n/a, GUNKUL – Very Good, Declared, HANA - Excellent, Certified, HMPRO - Excellent, Declared, ICHI – Very Good, Declared, INTUCH - Excellent, Certified, ITD – Good, n/a, IVL Excellent, Certified, JAS – not available, Declared, JASIF – not available, n/a, JUBILE – Good, Declared, KAMART – not available, n/a, KBANK - Excellent, Certified, KCE - Excellent, Certified, KGI – Good, Certified, KKP – Excellent, Certified, KSL – Very Good, Declared, KTB - Excellent, Certified, KTC – Excellent, Certified, LH - Very Good, n/a, LPN – Excellent, Declared, M – Very Good, Declared, MAJOR - Good, n/a, MAKRO – Good, Declared, MALEE – Very Good, Declared, MBKET – Very Good, Certified, MC – Very Good, Declared, MCOT – Excellent, Declared, MEGA – Very Good, Declared, MINT - Excellent, Certified, MTLS – Very Good, Declared, NYT – Excellent, n/a, OISHI – Very Good, n/a, PLANB – Very Good, Declared, PSH – not available, n/a, PSL - Excellent, Certified, PTT - Excellent, Certified, PTTEP - Excellent, Certified, PTTGC Excellent, Certified, QH – Excellent, Declared, RATCH – Excellent, Certified, ROBINS – Very Good, Declared, RS – Very Good, n/a, SAMART Excellent, n/a, SAPPE - Good, n/a, SAT – Excellent, Certified, SAWAD – Good, n/a, SC – Excellent, Declared, SCB - Excellent, Certified, SCBLIF – not available, n/a, SCC – Excellent, Certified, SCN – Good, Declared, SCCC - Excellent, Declared, SIM - Excellent, n/a, SIRI - Good, n/a, SPALI - Excellent, Declared, SPRC – Very Good, Declared, STA – Very Good, Declared, STEC – Excellent, n/a, SVI – Excellent, Certified, TASCO – Very Good, Declared, TCAP – Excellent, Certified, THAI – Very Good, Declared, THANI – Very Good, Certified, THCOM – Excellent, Certified, THRE – Very Good, Certified, THREL – Very Good, Certified, TICON – Very Good, Declared, TISCO - Excellent, Certified, TK – Very Good, n/a, TKN – Good, n/a, TMB - Excellent, Certified, TOP - Excellent, Certified, TPCH – Good, n/a, TPIPP – not available, n/a, TRUE – Very Good, Declared, TTW – Very Good, Declared, TU – Excellent, Declared, UNIQ – not available, Declared, VGI – Excellent, Declared, WHA – not available, Declared, WHART – not available, n/a, WORK – not available, n/a. Companies participating in Thailand’s Private Sector Collective Action Coalition Against Corruption programme (Thai CAC) under Thai Institute of Directors (as of October 28, 2016) are categorized into: - Companies that have declared their intention to join CAC, and - Companies certified by CAC 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 Overweight Neutral Underweight Definition: An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation. A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation. An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation. Country Ratings Overweight Neutral Underweight Definition: An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark. A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark. An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark. 14