1. law, govt and politics
2. government

REGIONAL DAILY
December 26, 2012
MALAYSIA
Malaysia Daybreak
——————————————————————————————————————————————————————————————————————
FBMKLCI Index
Berjaya Sports Toto - Slowing NFO sales
1,900
1,850
1,800
1,750
1,700
1,650
1,600
Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14
———————————————————————————
FBMKLCI
16.04pts
Jan 15 Futures
1712.5 - (0.29% )
1715 - (1.00% )
———————————————————————————
Losers
Annualised 1HFY04/15 net profit of RM178m was slightly below, at 93% of our
full-year forecast on slower NFO sales. 2Q interim dividend of 6 sen brought 1H
dividends to 11.5 sen, in line with our full year DPS forecast. We lower FY15
EPS by 3.6% as we lower our NFO sales forecast to -4% yoy from -3% yoy. Our
DDM-based target price falls marginally as a result. Maintain Hold on BST. The
consumer discretionary spending momentum is clearly decelerating in
Malaysia and we remain concerned about the strength of the illegal market.
BST’s share price will continue to be supported by its solid dividend yield and
share buyback programme.
0.94%
Dec Futures
Gainers
22 December 2014
▌What’s on the Table…
Key Metrics
1715.99
|
Unchanged
▌News of the Day…
——————————————————————————————————————————————————————————————————————
611
252
277
———————————————————————————
Turnover
1867.45m shares / RM2214.135m
3m avg volume traded 1999.44m shares
3m avg value traded RM1976.69m
———————————————————————————
Regional Indices
FBMKLCI
FSSTI
JCI
SET
HSI
1,716
3,280
5,145
1,514
23,117
• Surprise dividend in store for MISC shareholders
• Auto sector likely to soften in 1H2015
• Construction sector likely to remain attractive next year
• Taliworks to takeover expressway for RM265m
• “Palm oil-free” labels may be damaging for Malaysia
• 7-Eleven plans new push to boost growth
• Proton is ready to collaborate on Asean car project
————————————————————————————————
Market Indices
Close
% chg
YTD % chg
FBMKLCI
1,715.99
0.9
(8.1)
FBM100
11,542.40
1.1
(8.3)
FBMSC
14,846.81
1.1
(5.4)
FBMMES
5,603.33
1.5
(1.3)
Dow Jones
17,804.80
0.1
7.4
NASDAQ
4,765.38
0.4
14.1
FSSTI
3,279.53
1.1
3.5
FTSE-100
6,545.27
1.2
(3.0)
SENSEX
27,371.84
0.9
29.3
Hang Seng
23,116.63
1.2
(0.8)
JCI
5,144.62
0.6
20.4
KOSPI
1,929.98
1.7
(4.0)
Nikkei 225
17,621.40
2.4
8.2
PCOMP
7,125.63
1.4
21.0
SET
1,514.35
(0.2)
16.6
Shanghai
3,108.60
1.7
46.9
Taiwan
8,999.52
1.4
4.5
————————————————————————————————
Top Actives
Close
% chg
Vol. (m)
MINETECH
0.100
11.1
91.3
SUMATEC
0.220
(4.3)
64.3
BUMI ARMADA
1.160
0.0
38.0
SYSTECH BHD
0.250
6.4
35.6
PERISAI
0.465
1.1
35.0
ASIA BIOENERGY
0.125
(3.8)
34.2
GLOBALTEC
0.065
18.2
34.0
SAPURAKENCANA
2.240
0.0
33.0
————————————————————————————————
Economic Statistics
US$/Euro
RM/US$ (Spot)
RM/US$ (12-mth NDF)
OPR (% )
BLR (% , CIMB Bank)
GOLD ( US$/oz)
WTI crude oil US spot (US$/barrel)
CPO spot price (RM/tonne)
Close
1.2285
3.4635
3.5695
3.04
6.85
1,198.07
54.11
2,118.00
% chg
(0.02)
(0.04)
0.14
0.00
0.00
(0.05)
(4.18)
(0.75)
————————————————————————————————————————
Terence WONG, CFA
T (60) 3 2261 9088
E [email protected]
Show Style "View Doc Map"
IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT.
Daybreak│Malaysia
December 22, 2014
Global Economic News
The US Federal Reserve Bank of San Francisco President John
Williams affirmed that he believes any increase in short-term interest rates
is unlikely to happen until the middle of next year, and said that market views
on the timing of rate increases appear to be "relatively reasonable." (WSJ)
US Federal Reserve Bank of Minneapolis President Narayana
Kocherlakota said the persistent weakness of inflation in the US economy
calls into question any move by the Fed toward raising interest rates.

The fact that the Fed is edging toward higher rates "creates an unacceptable
downside risk to inflation and inflation expectations," he said. (WSJ)
US Philadelphia Fed leader Charles Plosser renewed his criticism that
the Fed may be behind the curve on raising rates, saying that "waiting too
long to initiate a gradual increase in rates could result in the need for more
aggressive policy in the future, which could lead to unnecessary volatility and
instability." (WSJ)
Eurozone's current account balance recorded a surplus of €20.5bn in Oct
(€32.0bn in Sep). (Dow Jones)
The European Union (EU)'s investment plan by European Commission (EC)'s
new president Jean-Claude Juncker, totalling €315bn, provides an opportunity
for "a renewed push towards structural reforms," European Central Bank
(ECB) President Mario Draghi said. He said it could contribute to raising
confidence in the euro zone, something he said was certainly needed. (WSJ)
The Bank of Japan (BOJ) announced its decision to leave its monetary
policy unchanged in its Dec meeting, deciding by a 8-1 vote to raise the
monetary base at an annual pace of about ¥80tr.

The economy is expected to continue a moderate recovery as the effects of
an Apr sales-tax increase dissipate, the BOJ said in a statement.

Inflation expectations appear to be rising from a longer-term perspective, it
said, but BOJ Governor Haruhiko Kuroda said the slide in oil could weigh
on consumer price gains in the first half of the year starting in Apr. (RTT,
Bloomberg)
Japan’s all industry activity dropped slightly by 0.1% mom in Oct (+1.4%
mom in Sep).

In Oct, the leading index dropped to 104.5 (104.0 estimated earlier) while
the coincident index rose to 109.9 (110.2 estimated earlier).
The lagging index also rose to 118.6 in Oct (118.2 in Sep). (RTT)
Japan’s corporate income tax may be cut by more than 2% pts next year
and reduced to less than 30% within five, Economy Minister Akira Amari said.
He also said the government will aim for wages to rise faster than inflation next
year. (Bloomberg)
2
Daybreak│Malaysia
December 22, 2014
China announced that its economy was 3.4% larger in 2013 than
previously thought--chiefly due to a more accurate counting of services and their
impact on economic output.

The new calculation added Rmb1.92tr (US$308.3bn) to the size of China's
economy in 2013, bringing it to a total of Rmb58.80tr. (WSJ)
India’s Conference Board leading index rose 1.2% mom in Nov (-1.0%
mom in Oct) while coincident index climbed 4.4% mom in Nov (-5.7% mom
in Oct). (RTT)
Hong Kong’s current account recorded a surplus of US$43.3bn in 3Q14
(US$8.08bn deficit in 2Q14). Overall balance of payments (BOP) surplus
was US$68.02bn in 3Q14 (US$12.22bn surplus in 2Q14). (Bloomberg)
Philippines' balance of payments (BOP) swung to a deficit of US$314m in
Nov (US$24m surplus in Oct). (GMA)
Philippines’ outstanding external debt amounted to US$57.7bn in 3Q14
(US$58.1bn in 2Q14). (Philippines Star)
Malaysian Economic News
Government may initiate measures to improve revenue, optimise
expenditure. The government may introduce new measures next year to boost
its coffers and improve expenditure to meet the 3.0% fiscal deficit target for
2015, says Minister in the Prime Minister’s Department Datuk Seri Abdul
Wahid Omar. The move will be reviewed by early next year, he said, adding that
for this year, Malaysia should be able to meet the targeted fiscal deficit of 3.5%,
from 3.9% of the gross domestic product (GDP) in 2013.

“For 2015, apart from the Goods and Services Tax (GST) and expected
higher income tax collection from improved compliance, the lower revenue
from oil and gas (O&G) will, to some extent, be mitigated by savings in fuel
subsidies of about RM11bn. Furthermore, the government can initiate other
measures to improve revenue and optimise expenditure in order to meet the
3.0% fiscal deficit budgeted for 2015,” Wahid said. (NST)
Prime Minister Datuk Seri Najib Razak said Malaysia should focus more on its
strong economic fundamentals to ensure fast recovery from the backlash
of weakened Ringgit and slow global economic trend nowadays.

He added that Malaysia had made the right move to implement the Goods
and Services Tax (GST) by Apr next year in view of the uncertainties in the
global economy and that it could give the much needed support should the
country's revenue is affected. Furthermore, he urged the Finance Ministry to
focus on two other aspects — namely to decrease the country's Gini
coefficient gap between the poor and the rich and to boost the country's
revenue based on higher productivity. (NST)
All projects and allocations listed under Malaysia’s Budget 2015 will
be executed as scheduled, said Treasury Secretary General Tan Sri Mohd Irwan
Serigar Abdullah. He added that there is no necessity at the moment to revise the
allocations under Budget 2015. “All allocations under the Budget 2015 stay. Also,
projects slated for implementation for next year will continue as per the
schedule,” he said. (Malaysian Reserve)
3
Daybreak│Malaysia
December 22, 2014
The retail price of RON95 and diesel may go below RM2 a litre from 1 Jan
next year if global oil prices continue to fall, said Deputy Finance Minister Datuk
Ahmad Maslan.

"If the downtrend in global oil prices continues over the next ten days to
come, I am confident, RON95 and diesel can be fixed at below RM2 a litre,"
he said, adding that with the decline in oil prices, businesses and companies
would reduce prices of their products. He said the Ministry of Domestic
Trade, Cooperatives and Consumerism would take action if the companies
refused to bring down their prices. (Malaysian Insider)
The government will focus on the twin aspects of increasing income based
on productivity and reducing income disparity in the quest towards driving
the nation to developed status. Prime Minister Datuk Seri Najib Tun Razak said
Malaysia's economy needs to be based on the majority of the people being able to
feel that their income is increasing in tandem with improving productivity.

"Only with rising income, does the term, 'developed nation', have meaning
for the people. If the income disparity between the poor and rich is wide, it
will create a feeling of dissatisfaction among the people," he added.
(Malaysian Reserve)
The Customs Department has dispelled talk that private healthcare charges
would rise by 5% with the Goods and Services Tax (GST), saying that it is
expected to go up by just between 1% and 2%.

They said that room charges and food provided at private hospitals were
now liable for a 6% service tax but that the tax would be scrapped as both
items did not come under GST. A total of 2,900 medicines have also been
listed as zero rated for GST. (Star)
The Finance Ministry said service charges by banks will be subjected to
GST, and as such customers will have to pay the extra 6%, adding that the
actual amount involved in the transaction such as the amount withdrawn and
the interest paid for loans will not be affected by the tax.

Customers would also be charged GST on fees charged for insurance or
cheque books, on provision of bank statements, loan processing, standing
instruction services and maintenance services in relation to buying and
selling of shares. (Star)
Trade associations are projecting a challenging year ahead, with many
expecting growth to be “conservative” at best. The goods and services
tax (GST) that takes effect in Apr 2015 is the oft-mentioned concern.
Business owners believe the new tax system will burden consumers and add to
the already high cost of doing business, despite repeated assurances from the
government that its impact will be minimal. (Financial Daily)
Kumpulan Wang Persaraan (KWAP) has been a net buyer of the
securities during this month’s selloff in developing nations, Wan
Kamaruzaman said in an interview. The retreat in Malaysian stocks and bonds,
which saw the benchmark share index drop to a 20-month low and 10-year
government debt yields rise to the highest since January, is temporary and the
market will recover in the first quarter, he predicted.

It is reducing cash holdings and buying more of the nation’s bonds and
stocks, said Chief Executive Officer Wan Kamaruzaman Wan Ahmad, adding
that he sees little risk in emerging markets. “Trust me, there’s not going to be
a rout in emerging markets, or a fiasco,” Wan Kamaruzaman said. “I will put
my money in,” he said. (Bloomberg)
4
Daybreak│Malaysia
December 22, 2014
The Domestic Trade, Cooperatives and Consumerism Ministry has announced
the ceiling price for 12 controlled items under the Christmas Festival
Price Control Scheme, which will be enforced for five days beginning Dec 23
during which traders were required to sell the affected items based on the
stipulated price and to tag them with the special pink tags.

The items included live chicken, standard chicken, super chicken, bone-in
local mutton, imported bone-in and boneless lamb, imported bone-in lamb
thigh, Grade A, B and C chicken eggs, tomato and green Bengal chili, he said.

He assured sufficient supply of all essential items during the festive and that
there was no reason for traders to hike the price of the food items concerned.
(Bernama)
Penang Chief Minister Lim Guan Eng has welcomed a statement by the Royal
Customs Department that the Goods and Services Tax (GST) will not be
imposed on users of the Penang and Johor bridges. He said the DAP-led
state government accepted it as an official statement and hoped the matter
would not be disputed in the future.
To further boost bilateral trade and investment in Malaysia, Russia is keen
to tap business opportunities in sectors like biotechnology. A number of
Russian businessmen had shown interest in undertaking fertiliser and
biotechnological projects with Malaysian partners.
"The prospects for an increase in trade and investment between Russia and
Malaysia are good and we hope to go beyond the current limited scope of
trading," said the outgoing Russian ambassador to Malaysia. It was previously
reported that Malaysia-Russia trade for 2012-2013 rose by 66.6%. (Bernama)
Political News
Tun Dr Mahathir Mohamad has come under more criticism from the
opposition over his claims that Malays have been reduced to beggars due to
their weakened political dominance, and have to rely on support from other
races to remain in power.

DAP national vice chairman Teresa Kok said the former prime minister’s
tactic of using the purported loss of Malay dominance to rally Malays into
supporting Umno is a bogey that will not work.

She said Dr Mahathir knows well that Malays have not become beggars in
Malaysia and will remain politically dominant. (Malaysian Insider)
Malays can be strong, but they must stop voting along race or religious lines and
instead choose a political party that will improve the government, former de
facto law minister Datuk Zaid Ibrahim said.

The Malay community could not work in isolation and needed other races
for it to strengthen itself, Zaid said in a rebuttal to Tun Dr Mahathir
Mohamad's claim that Malay political power was weak that they had to
"beg" from other races to win support. (Malaysian Insider)
5
Daybreak│Malaysia
December 22, 2014
Corporate News
MISC Bhd, an energy shipping as well as oil and gas services provider, may
reward its shareholders with a “surprise” dividend for FY14, following an
extraordinary gain from the recent sale of its 15.7% stake in port operator, NCB
Holdings Bhd, for close to RM222m in cash. The Petronas subsidiary has been
disposing of its non-energy related businesses in a bid to become a leaner
corporation focusing on energy-related operations. Earlier in March this year,
the shipping group announced it was disposing of its entire equity interest in
wholly-owned MISC Integrated Logistics Sdn Bhd to Golden Age Logistics Sdn
Bhd, a wholly-owned subsidiary of Utusan Printcorp Sdn Bhd, for RM250m
cash. (StarBiz)
Celcom Axiata Bhd is optimistic that the completion of its information
technology (IT) transformation exercise will greatly help improve efficiency and
maximise growth opportunities. Celcom on Friday announced a RM493m net
profit for its third quarter ended September 30, down 12% from RM562.4m a
year ago. Revenue for the quarter eased 4% to RM1.93bn from RM2.02bn
previously. Its chief executive officer Datuk Sri Shazalli Ramly said Celcom
managed to achieve healthy, consistent and sustainable growth in mobile data
amid competitive market challenges. (BT)
Malaysia Airlines (MAS) is set to celebrate the arrival of the carrier's 100th
Boeing 737. The aircraft, a next-generation of Boeing 737-800, was delivered to
MAS in Seattle on Friday. MAS group chief executive officer Ahmad Jauhari
Yahya said the 737 had and would continue to be an amazing aircraft for the
airline with its consistent reliability, unmatched economics and innovation in
passenger comfort. "We used a 737 for our very first flight in 1972 and we are
excited to take delivery of our 100th airplane of its type," he said in a statement.
(StarBiz)
Bursa Malaysia has issued a new framework for the opening of trading and
securities accounts for both retail investors and corporate clients. Bursa said the
framework provides greater flexibility to participating organisations (POs) of
Bursa Securities and authorised depository agents (ADAs) of Bursa Depository
in opening accounts. POs and ADAs are now able to allow individual investors to
open the accounts through electronic mediums, it added. Bursa CEO Datuk
Tajuddin Atan said the new framework’s objective is to facilitate a simpler and
smoother account opening process, with proper checks in place. (BT)
Dialog Group Bhd's wholly owned subsidiary, Dialog Equity (Two) Sdn
Bhd (DET), has entered into a shareholders agreement with PRPC Utilities and
Facilities Sdn Bhd (PRP-CUF) and Vopak Terminal Pengerang BV to undertake
the Pengerang Terminal Phase 2 Project (PTP2) at a approximate total project
cost of RM6.3bn. In an exchange filing last Friday, the company said the
agreement involved the development, construction and operation of the
facilities required for the handling, storage and distribution of the crude oil,
petroleum, chemical and petrochemical feedstock, products and by-products to
and from the Refinery and Petrochemical Integrated Development (Rapid)
complex at Pengerang Johor. (Malaysian Reserve)
GHL Systems Bhd is in the middle of finalising arrangements for several
third-party acquirer (TPA) to launch its electronic data capture (EDC) in
Malaysia, as the country offers many potentials to tap. Group CEO Raj Lorenz
said the EDC terminal population in Malaysia numbers around 240,000 units,
adding that Bank Negara Malaysia (BNM) has already set a target of 800,000
units to be deployed by 2020. "A wide network of e-payment acceptance points
6
Daybreak│Malaysia
December 22, 2014
are critical to allow consumers to move from cash to e-payments," he said.
(Malaysian Reserve)
7-Eleven Malaysia Holdings Bhd plans to keep up its current double-digit
sales growth for the next few years with key strategies to boost sales and
profitability. CEO Gary Brown said the company has lined up new initiatives to
be implemented by year-end to increase sales moving forward. He said the
company remains positive on 2015 despite the impending introduction of GST
in April 2015. "We can never determine how the market is going to react. But
generally, we are expecting good January and February sales and March sales to
be extra good," he said. Brown said 7-Eleven aims to attract more traffic into its
stores through the introduction of bill payments at 7-Eleven stores. From
January next year, the public will be able to pay their Telekom Malaysia and
Astro bills at 7-Eleven stores, with more payment channels to be added in the
future, said Brown. (Malaysian Reserve)
The spreading of “No Palm Oil” or “Palm Oil Free” campaign, first in Europe
and now in Singapore, is potentially damaging for Malaysia, said National
Association of Smallholders (Nash) of Malaysia.

“It has come to this part of the world,’’ Nash secretary-general Zulkifli Mohd
Nazim said, showing photographs of infant milk cans taken at a
supermarket in Singapore with highly visible “Palm Oil Free’’ signages on
them. He said the public is being misled into believing that saturated fats in
palm oil are bad when in reality they are necessary in a balanced diet.

Since December 13, the European Union Food Information for Consumers
Regulation mandates specification of vegetable oils (i.e. palm, rapeseed,
sunflower, soya) on the ingredient list. But food firms had also inserted “No
Palm Oil” on the labels, which falsely insinuates palm oil is bad that has to
be avoided. In Europe, these discriminatory labels are being promoted by
chocolate maker Galler and supermarket chain Delhaize. (NST)
Standard and Poor’s (S&P) expects the top 41 banks in the Asia-Pacific region,
including three Malaysian banks, to enjoy stable prospects next year even as the
slowdown in China remains a hot spot. Although credit costs may rise, they will
be at a gradual pace due to the region’s relatively high gross domestic product
growth compared with global standards.

The three local banks in S&P’s good books are: CIMB Bank Bhd
(A-/Stable/A-2; axAA/axA-1), Malayan Banking Bhd (A-/Stable/A-2;
axAA/axA-1) and Public Bank Bhd (A-/Stable/A-2; axAA/axA-1).

Major banks in the Asia-Pacific region are expected to step up cross-border
expansion, given the region’s increasing economic linkages and the banks’
persistent appetite for higher yields, the credit rating agency said. (BT)
The construction sector is expected to remain attractive next year amid a
weaker domestic currency due to lower demand for commodities and the
general public apprehension over the Goods and Services Tax (GST). Malaysia
Building Society Bhd president and CEO Datuk Ahmad Zaini Osman said he
expected the property market to remain sustainable, with the demand not much
affected, even upon the GST implementation in Apr. "Furthermore, I think, our
building materials, in term of currency, won't be much affected as most of our
products is local. We no longer bring in imported products. Hence, I foresee that
the property sector will remain sustainable next year," he said (Bernama).
7
Daybreak│Malaysia
December 22, 2014
Automotive players expect the sector to soften in 1H15, as uncertainties over
the impact of the Goods and Services Tax (GST), rising living costs and
bleak global economic outlook may cause consumers to be careful with their
spending. Proton Holdings Bhd CEO Datuk Abdul Harith Abdullah said
Proton sees a lot of potential in providing new models in their respective
segments. However, he said, Proton is also cautious and mindful of the market
outlook for next year with the impending introduction of the GST. The current
weakening of the ringgit against major currencies may not help either, as
imports become more expensive, resulting in higher car prices, Abdul Harith
said, adding that the first half of next year could be very soft.

Perodua also foresees a challenging 2015. Its president and CEO Datuk
Aminar Rashid Salleh expressed hope for a slightly better year than this year.
(Bernama)
Malaysian carmaker Proton Holdings Bhd says it is ready to collaborate in
the Association of Southeast Asian Nations (Asean) car project. Proton chief
executive officer Datuk Abdul Harith Abdullah said Asean is the next
largest growing market in the world after China, and Asean countries should
protect their own market territory by producing their own homegrown products.

“We would be very happy to extend our market deeper into other Asean
countries with their collaboration, in expanding our brand further,” he said
when asked to comment on the Asean car project, which was discussed by
Malaysian and Indonesian leaders in October. On October 20, Prime
Minister Datuk Seri Najib Razak said the project would be a dream come
true as newly-elected Indonesian President Joko Widodo had expressed
interest in pursuing the idea mooted by Malaysia. After meeting Jokowi in
Jakarta following his inauguration as the Indonesian president, Najib said
Proton is expected to be involved in the project. (BT)
Petronas Refinery and Petrochemical Corporation Sdn Bhd (PRPC)
has selected US-based LyondellBasell's Spherizone and Spheripol polypropylene
process technologies for a 900-kilotonne per annum polypropylene (PP) plant.
The plant is to be constructed within the Petronas' Refinery and
Petrochemical Integrated Development (RAPID) complex in Pengerang,
Johor. PRPC Project RAPID Deputy Project Director for Petrochemicals Datuk
Nur Iskandar A Samad said selection of both the Spherizone and Spheripol
process technologies will provide Petronas with a wide range of
premium-quality and differentiated PP products, used in many application
areas, across industries, from automotive to household products. (Bernama)
Santos, a leading oil & gas producer in Australia, has secured a three-year,
A$1bn bilateral bank loan facility from ANZ Bank, two weeks after abandoning a
Euro debt raising believed to be worth 500m euros. "This facility provides a
substantial buffer over and above the company's funding needs in the current
uncertain oil price environment," said CEO Andrew Seaton. Santos, which has
links with Petronas, recently slashed planned spending by A$700m and is
considering asset sales in response to the weakest oil prices in five years, the
Australian Associated Press reported. But the company, which is due to begin
production at Gladstone liquefied natural gas project in Queensland next year,
insists its finances and underlying performance are strong. (Bernama)
8
Daybreak│Malaysia
December 22, 2014
The Johor Entrepreneurial Development Centre (EDC) is spearheading efforts
spur the growth of small and medium enterprises (SMEs) by exploiting the
spillover of the Iskandar and Pengerang development.

Johor Education, Information Entrepreneurial Development and
Cooperative Committee chairman Md. Jais Sarday said EDC would
formulate a five-year strategic plan to assist SMEs in seizing business
opportunities. The plan is expected to be unveiled under the Johor Strategic
Growth Plan in 1Q15.

Md Jais said although Johor has the third biggest number of SME
companies after Selangor and Kuala Lumpur, their contribution to the GDP
was merely 8.4% compared with that of Selangor (28.3%) and Kuala
Lumpur (29.1%). He attributed the low percentage to Johor's SMEs
concentration in the services and agriculture sectors, apart from financing
constraints. (Bernama)
Taliworks Corp Bhd's 70%-owned indirect subsidiary Jejak Melewar Sdn Bhd
has received a letter of award from the Malaysian government to take over the
New North Klang Straits Bypass Expressway (NNKSB) for RM265m.

In a filing with the stock exchange, Taliworks said the acquisition includes
the assets and concession rights to the NNKSB.

It will make the appropriate announcement upon the signing of the relevant
agreements and documents and any other developments relating to this in
due course. (Sun)
Mulpha Land Bhd’s third largest shareholder, Perfect Portal Sdn Bhd has
ceased to be a substantial shareholder in the property developer. In a filing with
Bursa Malaysia today, Mulpha Land disclosed that Perfect Portal had disposed
of 5.07m shares or 2.22% in the company on Dec 15. This brings its total stake to
7.5m shares or 3.29% now. Perfect Portal’s stake in Mulpha Land is held by
three individuals – Augustone Cheong Kwok Fai, Choong Kam Peng and Yeow
Soo Hiang. Mulpha Land’s two largest shareholders are Mulpha International
Bhd with a stake of 61.93% and Pasukan Sehati Sdn Bhd, which owns 8.6%.
(Financial Daily)
Shareholders of KNM Group Bhd today aired their concerns on the company's
operations going forward following the sharp drop on crude oil prices. In the
four-hour long EGM, shareholders raised issues pertaining to declining crude oil
prices, Petroliam Nasional Bhd (Petronas)-related contracts and the RM2.1bn
Peterborough project in UK. KNM assured shareholders that the process
equipment manufacturer is 'less impacted' by the declining crude oil prices as it
is principally involved in onshore downstream activities.

The group also assured shareholders that its work package contract for the
Pengerang Integrated Complex (PIC) project is secured despite Petronas'
announcement it will cut 15% to 20% of its capital expenditure next year.
(Financial Daily)
NTPM Holdings Bhd’s net profit plunged 43% to RM9.2m for its second
financial quarter ended Oct 31, 2014 (2QFY15) from RM16m a year ago, mainly
due to higher cost of raw material, labour and utility. Revenue for 2QFY15,
however, rose 3% to RM138.1m from RM133.7m in 2QFY14, thanks to increased
sales of baby diapers. Earnings per share (EPS) for 2QFY15 dropped to 0.8 sen
compared with 1.4 sen in 2QFY14.

For the six months period to Oct 31 (6MFY15), net profit plunged 42% to
RM16.2m from RM28m a year ago, but revenue rose a marginal 2% to
RM270.3m from RM265.4m in 6MFY14. EPS for 6MFY15 stood at 1.4 sen,
9
Daybreak│Malaysia
December 22, 2014
down from 2.5 sen in 6MFY14. Going forward, NTPM expects a more
competitive business environment due to mounting costs pressure and keen
competition. (Financial Daily)
Plastic packaging products maker CYL Corp Bhd saw its net profit surge more
than four-fold to RM1.2m for the third financial quarter ended Oct 31, 2014
(3QFY15) from RM271,000 a year ago, bolstered by higher demand for its
products and a nominal acceptance to its higher pricing. It also no longer
needed a provision for writedown on its packaging inventories.

Revenue rose 28% to RM19.9m from RM15.6m in 3QFY14. Earnings per
share (EPS) stood at 1.19 sen from 0.27 sen in 3QFY14. For the nine-month
period (9MFY15), CYL Corp's net profit jumped almost three-fold to
RM3.79m from RM1.3m a year ago, while revenue grew 18.6% to RM57.1m
from RM48.1m. Going forward, CYL Corp said it foresees the marketplace to
remain competitive, especially with the increase in labour cost and
electricity tariff that affect the group’s profit margin. (Financial Daily)
Despite the fear of a property glut, especially of condominium units in Iskandar
Malaysia, Shanghai-based property giant Greenland Holdings Group
remains confident of its two ventures in the economic region. The first is coastal
Jade Palace serviced condominium luxury project at Danga Bay measuring
5.65ha, while the other is a 51.2ha integrated mixed development in Permas
Jaya.

“We believe that in the next three to five years a lot of factories in the
republic (Singapore) will shift their operations to Iskandar Malaysia, and
this will have a spillover effect on the economic region and even help
long-term development in the state,” Greenland Group’s general manager
for Malaysia Wu Shaohua said after the official opening of the company’s
show gallery at Menara Landmark here.

Last week, Greenland Malaysia signed a sales and purchase agreement with
Iskandar Water- front Holdings for the Permas Jaya land parcel. The site
will be turned into Southeast Asia’s leading urban development featuring,
among others, a snow world theme park and an opera house. (BT)
Malaysia continues to strive towards its 28m tourist target in 2014 despite the
twin tragedies involving Malaysia Airlines (MAS) flights MH370 and MH17
earlier this year. Tourism and Culture Minister Datuk Seri Mohamed
Nazri Abdul Aziz said his ministry has not lost sight of the target despite what
had befallen the country. "Despite the double tragedies that we've seen, we're
still on target to receive the 28m tourists we're aiming for during Visit Malaysia
Year 2014. (Bernama)
Petroliam Nasional Bhd (Petronas) expects to increase its oil recovery
from the existing 35% to 45% by 2018, in line with the full integration of the
Pengerang Integrated Petroleum Complex (PIPC). According to Petronas
Carigali Sdn Bhd head of enhanced oil recovery (EOR) programme technology
Norhayati Hashim, the target will mainly be supported by Petronas’ in-house
geo-imaging technology, one of the components of the company’s EOR
development project.

“EOR has the opportunity to further improve oil recovery to more than 45%
for Malaysia in order to ensure sustainability in the country’s national oil
production,” she said in her presentation entitled “Technology for New
Lease of Life” at the recently-held International Petroleum Technology
Conference.

She added that the results of the experiment are expected within the first
quarter of next year and if successful, the new technology will be beneficial
10
Daybreak│Malaysia
December 22, 2014
across Petronas’ upstream endeavours, particularly in mature oil fields.
According to Norhayati, geo-imaging technology and the company’s overall
EOR segment is not here to compete with existing service providers like
Schlumberger, but for the overall benefit and growth of the company. (BT)
Unilever Food Solutions Malaysia will likely maintain its product prices
ahead of the implementation of the Goods and Services Tax (GST) next Apr.
"We are currently studying the trends. In terms of pricing, we expect there will
be not much change, it could probably remain or decrease slightly, and any
changes will be announced by the end of Feb or Mar," said national sales
manager Eric Chong. In response to a question on changes to product prices
with the GST implementation, Chong said the general trends could only be seen
after six months of implementation. Among Unilever food products in Malaysia
are Wall's, Lipton, Knorr, Lady's Choice and Planta, while its non-food products
include Dove, Lux, Clear, Lifebuoy, Ponds, Breeze, Ekonomi Handalan, Sunsilk,
Fair & Lovely and Rexona. (Bernama)
Dancomech Holdings Bhd, which supplies process control equipment and
measurement instruments, expects to be listed on the Main Market on Bursa
Malaysia in the second quarter of next year (2QCY15), said managing director
Daniel Aik Swee Tong. "We are still finalising pricing issues and other matters.
Hopefully, we can complete the prospectus soon and submit it to the regulator
by next year," he told the Edge Financial Daily recently. According to
Dancomech's draft prospectus, the group is expected to issue 26.8m new shares
which will enlarge its share capital to 276.8m shares. There will also be an offer
for sale of 44m existing shares. The issue of new shares accounts for 9.68% of its
enlarged share base, while the offer for sale accounts for another 15.95%;
collectively they make 25.63%. (Financial Daily)
11
Daybreak│Malaysia
December 22, 2014
BMSB: Changes in shareholdings
19-Dec-14
EPF
EPF
EPF
EPF
EPF
EPF
EPF
EPF
EPF
EPF
EPF
EPF
EPF
Skim Amanah Saham Bumiputera
Kumpulan Wang Persaraan
Kumpulan Wang Persaraan
Kumpulan Wang Persaraan
Great Eastern Holdings Limited
Great Eastern Holdings Limited
Genesis Investment Management, LLP
Mitsubishi UFJ Financial Group, Inc
EPF
EPF
EPF
EPF
EPF
EPF
EPF
EPF
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
Kumpulan Wang Persaraan
Kumpulan Wang Persaraan
Kumpulan Wang Persaraan
Kumpulan Wang Persaraan
Kumpulan Wang Persaraan
Vertical Capacity Sdn Bhd
Apollo Asia Fund Limited
BIZURAI BIJAK (M) SDN BHD
Davos Investment Holdings Private Ltd
Date
25/11-16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
11/12-16/12
12/12
12/12
12/12
15/12
12/12
17/12-18/12
15/12
15/12-16/12
11/12-15/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
16/12
15/12
15/12
16/12
16/12
15/12-16/12
15/12-16/12
12/12
10/12-11/12
12/12
12/12
12/12
16/12-18/12
11/12-18/12
16/12-17/12
15/12
Type of
transaction
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Disposed
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired
No of
securities
2,728,100
892,100
873,300
687,200
500,100
396,700
359,800
300,000
204,800
167,500
150,000
36,000
10,300
581,000
500,000
162,300
94,300
1,000,000
4,400
1,300,000
663,500
8,935,700
7,322,300
5,408,600
3,000,000
3,000,000
2,079,300
2,000,000
1,850,000
1,796,300
1,421,000
1,324,300
1,286,300
978,700
933,000
901,300
750,000
551,900
500,000
429,000
400,000
276,700
245,600
217,700
148,600
100,000
80,000
67,400
25,000
10,000
1,900
161,500
161,500
1,000,000
509,000
153,800
115,100
18,000
4,616,200
489,400
900,000
266,500
Ave Price
Company
(RM)
AFFIN HOLDINGS
MBM RESOURCES
KPJ HEALTHCARE
FELDA GLOBAL VENTURES
SIME DARBY
EASTERN & ORIENTAL
UMW HOLDINGS
SAPURAKENCANA PETROLEUM
UEM SUNRISE
TOP GLOVE
SHELL REFINING COMPANY
EVERSENDAI CORPORATION
TAN CHONG MOTOR
TENAGA NASIONAL
FELDA GLOBAL VENTURES
BIMB HOLDINGS
POS MALAYSIA
SALCON
STAR PUBLICATIONS
7-ELEVEN MALAYSIA
CIMB GROUP
MALAYAN BANKING
TENAGA NASIONAL
DIALOG GROUP
AXIATA GROUP
DIGI.COM
BUMI ARMADA
YTL POWER INTERNATIONAL
GAMUDA
PUBLIC BANK
TELEKOM MALAYSIA
SUNWAY BERHAD
IHH HEALTHCARE
CAHYA MATA SARAWAK
HONG LEONG BANK
MAH SING GROUP
IJM CORPORATION
AMMB HOLDINGS
CAPITAMALLS MALAYSIA TRUST
SUNWAY REIT
PETRONAS GAS
AFG
AIRASIA
POS MALAYSIA
BIMB HOLDINGS
KUALA LUMPUR KEPONG
IJM PLANTATIONS
MISC
PPB GROUP
AXIS REIT
NESTLE (MALAYSIA)
KLCC REIT
KLCC PROPERTY
GAMUDA
PRESTARIANG
TIME DOTCOM
PETRONAS GAS
WCT HOLDINGS
IOI CORPORATION
DAIBOCHI PLASTIC
4.27
BERJAYA SPORTS TOTO
MALAYSIAN PACIFIC INDUSTRIES
SOURCES: BMSB
12
Daybreak│Malaysia
December 22, 2014
BMSB: Changes in shareholdings
19-Dec-14
T. Rowe Price Associates, Inc
TOP GLOVE
MAGNUM
WAH SEONG CORPORATION
SIGNATURE INTERNATIONAL
EKSONS CORPORATION
DAIBOCHI PLASTIC
Date
12/12
19/12
19/12
19/12
19/12
19/12
19/12
Type of
transaction
Acquired
Shares Buy Back
Shares Buy Back
Shares Buy Back
Shares Buy Back
Shares Buy Back
Shares Buy Back
No. of
securities
720,100
620,000
90,000
50,000
40,000
17,900
5,000
Company
ASTRO MALAYSIA
TOP GLOVE
MAGNUM
WAH SEONG CORPORATION
SIGNATURE INTERNATIONAL
EKSONS CORPORATION
DAIBOCHI PLASTIC
Ave Price
(RM)
4.43
2.70
1.23
1.74
1.24
4.24
SOURCES: BMSB
BMSB: Off-market transactions
19-Dec-14
ABFMY1
PERWAJA
XINGHE
FREIGHT
MEDAINC
BORNOIL
KRONO
HARBOUR
BENALEC
INSAS
Vol
26,000,000
11,500,000
7,000,000
5,800,000
5,000,000
3,951,400
2,500,000
2,000,000
800,000
500,000
Notes:CN-Crossing deal on board lots, MN-Married deal on board lots, MO-Married deal on odd lots
SOURCES: BMSB
BMSB: Dividends
Company
MALAYSIA AIRPORTS
ASTRO MALAYSIA
SUPERMAX
UMW OIL & GAS
KPJ HEALTHCARE
UCHI TECHNOLOGIES
BERJAYA AUTO
UMW HOLDINGS
BERJAYA FOOD
MY E.G. SERVICES
GAMUDA
TOP GLOVE
BENALEC HOLDINGS
BERJAYA SPORTS TOTO
KUALA LUMPUR KEPONG
Particulars
Interim dividend - single tier
3rd interim dividend - single tier
Interim dividend - single tier
Interim dividend - single tier
Interim dividend - single tier
Interim dividend - single tier
2nd interim dividend - single tier
2nd interim dividend - single tier
1st interim dividend - single tier
Final dividend - single tier
1st interim dividend - single tier
Final dividend - single tier
Final dividend - single tier
2nd interim dividend - single tier
Final dividend - single tier
Gross DPS (Sen)
2.00
2.25
4.00
1.00
2.00
5.00
3.25
15.00
2.50
2.00
6.00
9.00
0.30
6.00
40.00
Ann Date
8-Dec-14
11-Dec-14
7-Nov-14
24-Nov-14
25-Nov-14
12-Dec-14
8-Dec-14
17-Dec-14
9-Dec-14
24-Nov-14
16-Dec-14
11-Nov-14
27-Nov-14
18-Dec-14
19-Nov-14
Ex-Date Lodgement
22-Dec-14
24-Dec-14
24-Dec-14
26-Dec-14
26-Dec-14
30-Dec-14
26-Dec-14
30-Dec-14
29-Dec-14
31-Dec-14
29-Dec-14
31-Dec-14
2-Jan-15
6-Jan-15
5-Jan-15
7-Jan-15
6-Jan-15
8-Jan-15
6-Jan-15
8-Jan-15
12-Jan-15
14-Jan-15
12-Jan-15
14-Jan-15
26-Jan-15
28-Jan-15
28-Jan-15
30-Jan-15
19-Feb-15
23-Feb-15
Payment
22-Jan-15
12-Jan-15
28-Jan-15
15-Jan-15
22-Jan-15
27-Jan-15
20-Jan-15
20-Jan-15
22-Jan-15
30-Dec-14
28-Jan-15
29-Jan-15
23-Feb-15
13-Feb-15
17-Mar-15
SOURCES: BMSB
BMSB: Proposed cash calls & trading of rights…
22-Dec-14
ECO WORLD
ASIA FILE CORP
EASTERN & ORIENTAL
BUMI ARMADA
BENALEC HOLDINGS
TH HEAVY ENGINEERING
TH HEAVY ENGINEERING
MY E.G. SERVICES
MAH SING GROUP
MALAYSIA AIRPORTS
Ann Date
25-Apr-14
6-Aug-14
5-Sep-14
12-Sep-14
12-Sep-14
24-Sep-14
3-Oct-14
30-Oct-14
20-Nov-14
28-Nov-14
Proposed
1 Rights @ 2, 4 Free Warrants @ 5, Private Placement
Bonus issue 3:5
Bonus issue 1:10, Free Warrants 1:5
1 Rights : 2 shares @ RM1.35
> RM200m of 7-year Redeemable Convertible Secured Bonds
Private placement of up to 10% of the issued shares of THHE
Rights issue with bonus issue, 1 bonus issue : 5 Rights shares
Bonus issue 1:1
Rights issue with Warrants; Bonus issue 1:4
Right issue 1:5
SOURCES: BMSB
13
Daybreak│Malaysia
December 22, 2014
Corporate Actions
December 2014
SUN
MON
TUE
WED
THU
FRI
SAT
1
2
3
4
5
External Trade,
External Reserves
(month-end data)
6
7
8
Berjaya Auto 2Q
9
SapuraKencana 3Q,
Berjaya Food 2Q
10
Eco World 13-mths
results & briefing
11
12
Astro 3Q & conf. call,
Industrial Production
13
14
15
16
SP Setia 4Q,
Gamuda 1Q,
Top Glove 1Q
17
CPI
18
B-Toto 2Q
19
20
21
22
Foreign Reserves
(mid-month data)
23
24
25
Christmas Day
26
27
28
29
30
31
Money Supply
Source: Company, BNM, DOS, CIMB estimates
SOURCES: Company, BNM, DOS, CIMB estimates
14
Daybreak│Malaysia
December 22, 2014
Corporate Actions
January 2015
SUN
MON
TUE
WED
THU
FRI
SAT
1
New Year
2
3
Prophet
Muhammad’s
Birthday
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
BNM OPR
30
31
29
Source: Company, BNM, DOS, CIMB estimates
SOURCES: Company, BNM, DOS, CIMB estimates
15
Daybreak│Malaysia
December 22, 2014
#05
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Daybreak│Malaysia
December 22, 2014
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means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written
consent of CHK. Unless permitted to do so by the securities laws of Hong Kong, no person may issue or have in its possession for the purposes
of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to the securities covered in this report, which is
directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the
securities laws of Hong Kong).
India: This report is issued and distributed in India by CIMB Securities (India) Private Limited (“CIMB India”) which is registered with SEBI as a
stock-broker under the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 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 the other
activities of CIMB India and they have received compensation based upon various factors, including quality, accuracy and value of research, firm
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our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the
Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBI has no obligation to update
its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only to clients of CIMBI. This publication is being supplied to you strictly on the
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Malaysia: This report is issued and distributed by CIMB Investment Bank Berhad (“CIMB”). The views and opinions in this research report are
our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the
Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMB has no obligation to update
its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only to clients of CIMB. This publication is being supplied to you strictly on the
basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any
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consent of CIMB.
New Zealand: In New Zealand, this report is for distribution only to persons whose principal business is the investment of money or who, in the
course of, and for the purposes of their business, habitually invest money pursuant to Section 3(2)(a)(ii) of the Securities Act 1978.
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Singapore: This report is issued and distributed by CIMB Research Pte Ltd (“CIMBR”). Recipients of this report are to contact CIMBR in
Singapore in respect of any matters arising from, or in connection with, this report. The views and opinions in this research report are our own as
of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial
Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBR has no obligation to update its
opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only. If the recipient of this research report is not an accredited investor, expert
investor or institutional investor, CIMBR accepts legal responsibility for the contents of the report without any disclaimer limiting or otherwise
curtailing such legal responsibility. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this
material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or
indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBR..
As of December 21, 2014, CIMBR does not have a proprietary position in the recommended securities in this report.
South Korea: This report is issued and distributed in South Korea by CIMB Securities Limited, Korea Branch ("CIMB Korea") which is licensed
as a cash equity broker, and regulated by the Financial Services Commission and Financial Supervisory Service of Korea.
The views and opinions in this research report are our own as of the date hereof and are subject to change, and this report shall not be
considered as an offer to subscribe to, or used in connection with, any offer for subscription or sale or marketing or direct or indirect distribution of
financial investment instruments and it is not intended as a solicitation for the purchase of any financial investment instrument.
This publication is strictly confidential and is for private circulation only, and no part of this material may be (i) copied, photocopied, duplicated,
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any purpose without the prior written consent of CIMB Korea.
Sweden: This report contains only marketing information and has not been approved by the Swedish Financial Supervisory Authority. The
distribution of this report is not an offer to sell to any person in Sweden or a solicitation to any person in Sweden to buy any instruments
described herein and may not be forwarded to the public in Sweden.
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). The views and opinions in this
research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or
the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBS has no
obligation to update its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only to clients of CIMBS. This publication is being supplied to you strictly on the
basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any
means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written
consent of CIMBS.
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:
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. 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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December 22, 2014
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
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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
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.
*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.
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