REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 26 September 2014

▌What’s on the Table… ——————————————————————————————————————————————————————————————————————

StemLife Bhd - Set for life

Listed on the ACE market, StemLife offers a unique opportunity to ride the growing demand for cord blood banking in Malaysia. Investors may have also overlooked its cash-generating ability, which is substantially higher than its reported earnings. In the past five years, StemLife has generated free cash flow (operating cash flow less capex) totalling RM47m, representing 41% of its current market cap. Given this, coupled with the huge cash pile of RM66m it had as at end-June 2014, we believe the stock could be worth RM0.58-0.92 per share, based on SOP, offering investors 26-100% upside.

SapuraKencana Petroleum - Reaching for the SKEI

SapuraKencana barrelled its way to a record 1H net profit, which broadly met our expectation at 57% of our FY1/15 net profit. We expect a soft 2H due to the monsoon season. Still, the 1H net profit surpassed consensus expectations at 65% of estimates. 1H pretax profit hit RM1bn for the first time, fuelled mostly by contributions from SKEI's and Seadrill's assets. We continue to value the stock at 23.4x CY15 P/E, a 40% premium over our implied target market P/E of 16.7x, but still within the historical P/E range of the oil & gas big caps. We maintain our Add rating, with strong order book momentum and a successful E&P venture as potential re-rating catalysts. SapuraKencana remains our top pick among the oil & gas big caps.

▌News of the Day… ——————————————————————————————————————————————————————————————————————

• All parcels of land for Stage 1 RM18bn TRX project have been sold to investors

• Petronas could pull out of US$10bn LNG project in Canada

• Econpile Holdings Bhd secured RM34.5m contract from Cipta Klasik S/B

• Pelaburan Mara emerged substantial shareholder Asia Bioenergy, 6.94% stake

• Tanjung Offshore bagged RM200m EPIC contract from Petronas Carigali

• Malaysian CPO future price reached its highest in more than six weeks

• Lending to euro zone private sector continued to fall 1.5% yoy in Aug

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,700

1,750

1,800

1,850

1,900

Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14

———————————————————————————

FBMKLCI

1843.11 3.03pts 0.16%Sep Futures Oct Futures

1837 - (0.38% ) 1839.5 - (1.00% )———————————————————————————

Gainers Losers Unchanged421 435 308

———————————————————————————

Turnover2399.92m shares / RM1849.855m

3m avg volume traded 2623.30m shares

3m avg value traded RM2190.41m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,843 3,291 5,201 1,592 23,768 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,843.11 0.2 (1.3)

FBM100 12,495.07 0.3 (0.7)

FBMSC 18,712.87 0.1 19.2

FBMMES 7,338.15 (0.1) 29.3

Dow Jones 16,945.80 (1.5) 2.2

NASDAQ 4,466.75 (1.9) 6.9

FSSTI 3,290.99 (0.1) 3.9

FTSE-100 6,639.71 (1.0) (1.6)

SENSEX 26,468.36 (1.0) 25.0

Hang Seng 23,768.13 (0.6) 2.0

JCI 5,201.38 0.5 21.7

KOSPI 2,034.11 (0.1) 1.1

Nikkei 225 16,374.14 1.3 0.5

PCOMP 7,294.21 (0.8) 23.8

SET 1,591.99 0.0 22.6

Shanghai 2,345.10 0.1 10.8

Taiwan 9,011.59 (1.0) 4.6————————————————————————————————

Close % chg Vol. (m)

SUMATEC 0.430 (2.3) 166.3

PDZ HOLDINGS 0.305 (6.2) 141.8

FOCUS DYNAMICS 0.125 (3.8) 97.6

NEXGRAM HOLDINGS 0.130 (7.1) 61.5

TAKASO RES 0.590 6.3 34.4

ASIA BIOENERGY 0.175 2.9 33.2

PWORTH 0.255 (1.9) 32.9

TMC LIFE SCIENCE 0.650 11.1 31.2————————————————————————————————

Close % chg

US$/Euro 1.2757 0.05

RM/US$ (Spot) 3.2543 (0.04)

RM/US$ (12-mth NDF) 3.3310 (0.05)

OPR (% ) 3.25 0.93

BLR (% , CIMB Bank) 6.85 0.00

GOLD ( US$/oz) 1,222.37 0.07

WTI crude oil US spot (US$/barrel) 94.33 0.35

CPO spot price (RM/tonne) 2,168.00 1.17

Market Indices

Top Actives

Economic Statistics

————————————————————————————————————————

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

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Daybreak│Malaysia

September 26, 2014

2

Global Economic News

The Asian Development Bank (ADB) has trimmed its growth forecast for Southeast Asia this year to 4.6% from Jul’s 4.7% and Apr’s 5.0%, citing factors such as political turmoil in Thailand earlier in the year and weaker commodity export prices in Indonesia.

The ADB said growth in Southeast Asia was likely to accelerate in 2015 to 5.3%, although that was down from its Jul and Apr’s forecasts for 5.4% growth. (Reuters)

US initial jobless claims climbed to 293,000 in the week ended Sep 20 (281,000 in week ended Sep 13). Continuing claims rose to 2.44m in the week ended Sep 13 (2.43m in week ended Sep 6). The unemployment rate among people eligible for benefits held at 1.8% during that period. (Bloomberg)

US total durable goods orders slumped a record 18.2% mom (+22.5% mom in Jul). But excluding the volatile transportation category, orders rose 0.7% mom in Aug (-0.5% mom in Jul). Orders for non-military capital goods excluding aircraft advanced 0.6% mom in Aug (-0.2% mom in Jul). (Bloomberg, WSJ)

The US Kansas City Federal Reserve Manufacturing Activity Survey rose to +6 in Sep (+3 in Aug). (Bloomberg)

The US flash services sector Purchasing Managers Index (PMI) compiled by Markit slipped to 58.5 in Sep (59.5 in Aug), declining for a third straight month. Markit's flash composite PMI dipped to 58.8 in Sep (59.7 in Aug). (CNBC)

US Atlanta Federal Reserve bank president Dennis Lockhart said the US economy is still hampered by weak demand at home and internationally, potentially pushing the need to raise interest rates later into next year. The forces that could weigh on the US recovery include the recent run-up in the value of the dollar and the potential that could choke exports, he said. (Reuters)

Lending to euro zone private sector continued to fall, down 1.5% yoy in Aug (-1.6% yoy in Jul). Private sector loans have not grown since Apr 2012. (Reuters)

Euro zone M3 money supply grew at an annual pace of 2.0% yoy in Aug (+1.8% yoy in Jul). (Reuters)

European Central Bank (ECB) President Mario Draghi said the downturn of the Russian economy would affect Europe, although the impact was likely to be limited given the relatively small scope of Europe's trade with Russia. (Reuters)

Japan Producer Price Index (PPI) was up 3.5% yoy in Aug (+3.4% yoy in Jul). (RTT)

Daybreak│Malaysia

September 26, 2014

3

Chinese leaders are discussing replacing the central bank chief Zhou Xiaochuan as part of a wider personnel shuffle that comes after internal battles over economic overhauls.

Over the past few months, Mr. Zhou has continued to press for market changes, including liberalizing interest rates.

The Chinese leadership, meanwhile, has become concerned that overhauls now will place another burden on an economy that is struggling to meet the government's target of 7.5% annual growth. (WSJ)

China has found nearly US$10bn worth of falsified trade transactions more than a year after the fake trades were first uncovered, the currency regulator said, adding that a crackdown had now stamped out the practice. (Reuters)

India Prime Minister Narendra Modi pledged to slash red tape and harness the benefits of a huge young population as he launched a campaign to attract global business to manufacture in India. (AFP)

Reserve Bank of India (RBI) Governor Raghuram Rajan said there was a need to "break the back" of inflation which remains high and controlling it would make the apex bank's position more comfortable. "The real problem is inflation that is persistent… We got to break this persistence," he said. (India Times)

Reserve Bank of Australia (RBA) Governor Glenn Stevens signaled he’s considering steps to limit home loans to investors, who are distorting the housing market. “Investor finance is growing at double-digit rates,” which is a concern, he said. (Bloomberg)

Job vacancies in Australia dipped slightly to +0.7% qoq in the three months to Aug (+2.4% qoq in the three months to Jul). (Reuters)

The values of Hong Kong's total exports increased 6.4% yoy in Aug (+6.8% yoy in Jul). Imports increased by 3.4% yoy in Aug (+7.5% yoy in Jul). Trade deficit was HKD31.5bn in Aug (HKD42.1bn deficit in Jul). (Xinhua, Bloomberg)

Consumer sentiment in South Korea remained strong at 107 in Sep, staying flat from Aug. (Yonhap)

Taiwan’s central bank held its discount rate on 10-day loans at 1.875%, adding that its monetary policy has turned neutral from “adequately loose”, signaling a shift in stance to tackle rising prices. (Bloomberg)

Inflation in Indonesia is expected to be under 5% yoy in Sep and as little as 0.2% mom, Bambang Brodjonegoro, vice minister of finance, said. (Jakarta Globe)

Daybreak│Malaysia

September 26, 2014

4

Philippines’ merchandise imports in Jul increased by 0.002% yoy to US$5.494bn (-1.4% yoy in Jun to US$4.8210bn). The country registered a trade deficit of US$33m in Jul (US$635m a year earlier). (GMA News, Bloomberg)

Philippines government posted a budget surplus of PHP29.9bn in Aug (PHP1.8bn deficit in Jul and PHP21.901bn surplus in Aug 2013). (Philippines Star, Bloomberg)

Malaysian Economic News

Several high-impact South Korean and Japanese companies have indicated strong interests to expand and explore investment opportunities here ahead of Malaysian trade and investment missions to both countries next week. The interests are centred on chemical, electrical and electronics, automotive, medical devices and renewable energy industries, Malaysia Investment Development Authority (Mida) Chief Executive Officer Datuk Azman Mahmud said.

Expressing his confidence that the trade missions would produce one of the biggest outcomes this year, he said the companies were considering business expansion, new investments and regional operation. Japan's investment in Malaysia from 2009 to May 2014 totalled RM36.4bn with 41,460 jobs created while that of South Korea amounted to RM13bn with 9,276 jobs created. (Bernama)

Malaysia's private households' financial assets growth slowed down to 11.2% last year, markedly below the average financial assets growth rate of 16.8% in the region, according to Allianz's fifth edition of its 'Global Wealth Report'.

"Not least due to the continuing recovery on the equity markets, securities holdings in 2013 amounted again to one third of total financial assets, similar to the level seen in the years before the shockwaves of the global financial crisis," it said.

On the global scale, Allianz said Malaysia ranked 29th with net financial assets per capita equalling US$7,800, putting it at the number five in the region, behind Japan, Taiwan, Singapore and South Korea. (Bernama)

The Malaysia Automotive Institute (MAI) has identified seven sectors, currently outsourced from abroad at the cost of RM12bn annually, that Bumiputera automotive entrepreneurs could go into. They are moulding design manufacturing, product design, assembly line design, forging, nonferrous casting, iron-casting and automotive grade steel production, said MAI Chief Executive Officer M.Madani Sahari. He said these sectors had been identified in the National Automotive Policy (NAP) 2014. (Bernama)

The government has approved financial assistance totalling RM75.2m under the rural economic funding scheme (SPED) since it was introduced in 2001 to help entrepreneurs in rural areas in the north zone. Rural and Regional Development Minister, Datuk Seri Mohd Shafie Apdal said SPED had successfully helped many entrepreneurs in rural areas nationwide in terms of financing and guidance via two implementing banks namely SME Bank and Bank Rakyat. "Among the unique features in SPED financing is the 'muqasah' facility, whereby the eligible borrower will receive a grant of 30% of the funding if they show excellent financial performance for three consecutive years after getting the loan. (Bernama)

Daybreak│Malaysia

September 26, 2014

5

German-based steering systems maker ZF Lenksysteme GmbH is investing RM50m in the next two years to set up a new plant in Penang to produce electric power steering systems column (EPSc).

Its vice chief executive officer, Dr Marcus Parche said the innovative column-type EPSc will be produced at the new plant, its second production facility, with a total surface area measuring 4,049 sq metres at the Prai Industrial Park.

"The new plant is to accommodate the EPSc production line, which will be ramped up in 2017. We are expecting a turnover growth of 60%," he said. He said 80% of the production at the Malaysian plant would be exported to Japan, China, the United States and Europe, while 20% would be supplied to the local market serving national car makers Proton and Perodua. (Bernama)

Volvo Malaysia Sdn Bhd is investing RM75m to expand its network in Malaysia in the next three to five years. Its Managing Director, Mats Nilsson said plans were afoot to enlarge its distribution centres from 11 at present. "We have been successful in Malaysia. We are growing and investing in our people. Just recently, we had opened new dealerships in Kuantan and Sibu.

"Our absolute growth in the heavy-duty truck segment is between 15 and 20% in the last couple of years," he said. In Malaysia, the new trucks were specifically built for the growing long-haul transportation, distribution, construction, and mining industries. (Bernama)

Malaysia's unemployment rate for Jul 2014 dropped to 2.8%, from 3.0% in Jul last year, the Statistics Department said. The rate was unchanged from the previous month this year. Labour force participation rate declined slightly to 67.4% in Jul 2014 (67.5% in Jun). (Bernama)

Malaysia needs to draw an inclusive bioeconomy plan that could benefit across regions, sectors and people from all walks of life, an international biotechnology expert said here yesterday. Alexandre F. Jetzer-Chung, a member of the Bio-International Advisory Panel (Bio-IAP), said the initiative should cover all regions including rural, northern Peninsular Malaysia, Sabah and Sarawak.

Malaysia's bioeconomy is estimated to contribute nearly US$15bn (RM48bn) to Malaysia's Gross National Income, create 170,000 high-quality jobs and attract US$16bn (RM50bn) in investment by 2020. (Bernama)

Malaysia and Thailand should leverage their expertise and knowledge in railway transportation to enable both countries to become stronger entities in the sector. Thai National Shippers' Council (TNSC) Chairman, Nopporn Thepsithar said Malaysia was relatively advanced in railway transportation and collaborations between the two countries were pivotal to its growth as the future lies in this mode of transportation.

"We should form an Asean shippers alliance that should include Singapore, Malaysia, Indonesia and the Philippines, but currently only Indonesia has participated in the alliance," he said. (Bernama)

Daybreak│Malaysia

September 26, 2014

6

Rising global demand is forecast to support strong export growth in Malaysia, leading the nation to a bright future, says the latest HSBC Global Connections Report.

Trade flows into Malaysia are expected to strengthen with respondents holding a broadly positive outlook over the next six months, according to HSBC's Trade Confidence Index (TCI) survey. "The outlook for trade remains broadly positive, despite a decline in the TCI which fell three points to 110 in first half of 2014.

"Many businesses are anticipating a pick-up in new orders as global demand accelerates," according to the biannual report.

Over the longer term, demand for Malaysia's exports should remain strong and the country's focus on Asia is set to continue, he said.

"China overtook Singapore as Malaysia's largest export market in 2013, a position it will solidify with export growth in excess of 12% p.a. expected until 2030," HSBC Bank Malaysia Bhd Head of Global Trade and Receivable Finance Vincent Sugianto said. (Bernama)

Total approved investments in Malaysia's bio-based industry from 2011 till now has more than doubled to US$5.6bn (RM17.9bn) compared with the target of US$2.7bn (RM8.64bn) set previously, Datuk Seri Najib Tun Razak, said. The prime minister said this was a significant achievement for Phase 2 of the National Biotechnology Policy in view that approved investments had exceeded the target for the 2011-2015 period.

The programme was introduced to increase the income of urban and rural Malaysians, he said, adding that this would be achieved through the Bioeconomy Community Development Programme and technology bridging between bio-based companies and international research and development institutions. (Bernama)

Malaysia's cloud business is expected to benefit from the growing worldwide information technology (IT) cloud services, said Multimedia Development Corp (MDeC). MDeC said according to a recent research conducted by the International Data Corp (IDC), worldwide revenue from public IT cloud services exceeded RM69.4bn in 2010 and was expected to reach RM235.5bn next year.

"The rapid growth is positively affecting the Malaysian cloud business which is poised to generate a revenue of RM1.5bn by 2015. "It is predicted that by 2017, most Malaysian organisations will be using cloud services from different suppliers to meet various business needs and this will change the way business goals can be achieved," it said. (Bernama)

The rat race to flaunt one's wealth is the primary cause of the record household debt in relation to the Gross Domestic Product (GDP) ratio in the country, notes Malaysian Islamic Understanding Institute (Ikim) director-general Datuk Nik Mustapha Nik Hasan. He said most households were currently seen to be living beyond their means, causing them to fall heavily in debt from excessive spending.

According to the Financial Stability and Payment System 2013 Report issued by Bank Negara Malaysia, he said 47.1% of household sector debts were attributed to the purchase of properties. He said motor vehicle purchase took up about 20%, non-residential property purchase (9.4), personal consumption (8.3), purchase of securities (7.8), credit card purchases (five) and other expenditure (2.4). (Bernama)

Daybreak│Malaysia

September 26, 2014

7

The Securities Commission (SC) has explained the proposed guidelines that will govern issuers and investors of equity crowdfunding (ECF) under the regulatory framework. According to SC, all locally-incorporated private companies, other than exempt private companies, are eligible to participate in ECF by issuing ordinary and preference shares to the public.

“An issuer will be allowed to raise up to a RM3 million for a 12-month period and a total maximum of RM5 million. Microfunds that are registered with the SC as venture capital firms and have an identified business plan are also allowed to participate on the ECF platform." (NST)

Some 53,400 companies nationwide, including 2,325 in Sarawak, have registered for the Goods and Services Tax (GST) as of yesterday, said Deputy Finance Minister Datuk Chua Tee Yong. He said the ministry will hold more seminars and forums to get more companies to register for the GST by year-end.

"In the last two days, an average of 2,000 companies registered each day, compared to just 1,000-1,500 daily last week. "This is a good sign, and a good performance in our efforts to get more companies to register," he said after attending the "GST Seminar: Leading SMEs Towards the GST Era" here today. (The Sun)

Standard & Poor's (S&P) said the aggregate debt of Malaysian companies is likely to keep growing over the next 12 months because of their sustained capital expenditure and dividends. In a statement on Thursday, S&P said its "Asean Top Companies" series of reports discussed the credit conditions and major credit developments for the corporate sector in Association of Southeast Asian Nations.

"Capital expenditure for the 24 companies we reviewed in Malaysia is likely to remain high in 2014. Moreover, we expect managements to maintain high dividend payouts. At the same time, revenue growth is slowing," said Standard & Poor's credit analyst Xavier Jean. (The Star)

Political News

Barisan Nasional has retained the Pengkalan Kubor state seat. Barisan candidate Mat Razi Mat Ail tallied 9,961 votes to PAS’ Wan Rosdi Wan Ibrahim's 7,326 votes, giving him a majority of 2,635 votes. The Independent candidate has 38 votes. In the 13th general election last year, Barisan won with a 1,736-vote majority. The Pengkalan Kubor by-election is a three-cornered fight between Mat Razi, Wan Rosdi and independent Izat Bukhary Ismail Bukhary. It was held following the death of Barisan's three-term assemblyman Datuk Noor Zahidi Omar on Aug 20 due to cancer. (Star)

Daybreak│Malaysia

September 26, 2014

8

Corporate News

Malaysian palm oil futures stretched gains into a third day on Thursday to touch their highest in more than six weeks, buoyed by robust demand and expectations that output would drop this month. Market players said that firm export demand, coupled with weaker palm yields in September, would prevent another big rise in inventories in the top palm-growing countries.

In August, Malaysia's stocks surged 22 percent from July to 2.05m tonnes. Exports of Malaysian palm oil products rose 29.6% to 1,278,703 tonnes between Sept. 1-25 compared with the same period a month before, cargo surveyor Intertek Testing Services reported. Another surveyor Societe Generale de Surveillance said exports for the same period rose 34.6%.

The Malaysian Palm Oil Association forecast palm oil production fell about 12% between Sept. 1-20, led by a drop in output in peninsular Malaysia. (Starbiz)

The Tata Sons-AirAsia JV has been kept out of the Federation of Indian Airlines (FIA), a joint forum of local carriers, despite applying for membership twice. The FIA is a joint forum of Indian carriers Air India, Jet Airways, IndiGo, SpiceJet and GoAir. "We have not even been invited to join FIA. No one has even replied to our letters," AirAsia global chief Tony Fernandes said. AirAsia India Pvt Ltd (AAIPL) CEO Mittu Chandilya said: "I myself wrote twice on this issue. I don't know why we haven't even got a reply. We are an Indian company, owned 51% by Tata Sons. Our management team is Indian."

Being denied entry into the club of Indian airlines, thereby treating AAIPL as a foreign airline, is just one of the issues that Fernandes is bitter about. The reaction his venture has got from competition in India is something, he says, has never happened with him anywhere else in the world. "They (the competition) are incredibly hostile... All guns are on us... I've been sued by everyone... I have never experienced such a thing in any other country. (We want to be in FIA) as I feel we all can work together to build a better aviation industry here," said Tony. (Times of India)

AirAsia group CEO Tony Fernandes said his airline in India will start flights to Mumbai soon. "In Incredible India, Bombay is changing by the day. AirAsia India will be starting in this metro soon. We are coming,'' Fernandes tweeted. The remark was greeted both by excitement and surprise as Fernandes had announced last year that AirAsia India will skip Mumbai and Delhi due to high airport charges. While Fernandes did not indicate a date, aviation sources said AirAsia is likely to launch Mumbai flights from early 2015. It has not applied for slots at Mumbai airport for the winter schedule beginning October end. (Business Standard)

Ivory Residence Sdn Bhd has partnered JB Lee Properties Sdn Bhd to develop residential and commercial properties in Mukim Plentong, Johor Bahru with a gross development value of RM2bn. Ivory Residence, a unit of Ivory Properties Group Bhd said the estimated 8.9-acre area is currently a freehold agriculture land which will be converted and re-zoned for use as a mixed development of residential and commercial properties. It said Ivory Residence will be responsible for the development of the property covering construction and building works in accordance. (StarBiz)

Daybreak│Malaysia

September 26, 2014

9

Ombak Damai Sdn Bhd, the third largest shareholder in Bumi Armada Bhd, has sold 664,900 shares of Bumi Armada in the open market. This still leaves it with a 7.15% stake or 209.6m shares in the company. Datuk Ahmad Fuad Md Ali and Datuk Abdul Farish Abd Rashid are both shareholders of Ombak Damai. They both have a direct stake of 0.01% and 0.004% respectively in Bumi Armada. Last month, Bumi Armada fixed the price of its rights issue at RM1.35 apiece, which is a 32% discount to the theoretical ex-all price of RM1.98 per share. The rights shares will be issued on a one-for-two basis, involving up to 1.48bn shares. There is also a bonus issue of up to 1.48bn shares, also on a one-for-two basis. (StarBiz)

Tanjung Offshore Bhd’s unit, Tanjung Offshore Services Sdn Bhd, has bagged an engineering, procurement, installation and commissioning (EPIC) contract worth RM200m from Petronas Carigali Sdn Bhd. Tanjung Offshore said the contract was for the provision of EPIC facilities for the Operational Reliability and Integrity Gauging of Instrument based Safeguards (ORIGInS) project.

The ORIGInS project is an initiative from Petronas Carigali’s facilities, covering Peninsular Malaysia, Sarawak and Sabah operations. The duration of the contract is for three years effective from 5 Sep 2014, with the option to extend for an additional one-year period until 5 Sep 2018. (Financial Daily)

All parcels of land for Stage 1 of the 28.3ha mixed development at the RM18bn Tun Razak Exchange (TRX) have been sold to investors, with master developer 1Malaysia Development Bhd (1MDB) retaining about five parcels for itself, said sources. A source said that the majority of investors who took up the parcels of land were foreigners. “1MDB has decided to keep about five parcels for itself, as it wants to develop them for some long-term recurring income,” said the source. Last December, TRX carried out its investor memorandum process where it was looking for international and local investors in the form of joint-venture partnerships or outright plot sales for Stage 1 of TRX. Subsequently, international property and infrastructure group Lend Lease was chosen, following an international bidding process overseen by CBRE, a global property consultant.

Stage 1 of TRX comprises four office towers, including a signature tower, five residential towers, two five-star hotels and a retail mall. However, no development value was given then. Stage 1 includes the “Lifestyle Quarter”, which is a retail-led mixed-use development of over 17 acres comprising a hotel, three residential towers and a new retail mall connected to TRX’s multi-layer central park. (StarBiz)

Petronas said it could pull out of its US$10bn liquefied natural gas (LNG) project in Canada due to what it sees as the country's slow progress of a new taxation scheme. Petronas CEO Tan Sri Shamsul Azhar Abbas said that he doubted the firm would be able to make a final investment decision by the end of this year, and that the project remains "uncertain". "Canada has to buck up real fast to be a credible global LNG player if it wants to be taken seriously by potential investors," Shamsul said.

"Rather than ensuring the development of the LNG industry through appropriate incentives and assurance of legal and fiscal stability, the Canadian landscape of LNG development is now one of uncertainty, delay and short vision," he added. (Financial Daily)

Daybreak│Malaysia

September 26, 2014

10

Econpile Holdings Bhd has received a letter of award from Cipta Klasik (M) Sdn Bhd for a piling contract worth RM35.4m. The contract, which was awarded to its unit Econpile (M) Sdn Bhd, comprises earthworks, bored piling, contiguous bored pile and basement substructure works of a serviced apartment project in Lorong Stonor, Kuala Lumpur. (StarBiz)

Pelaburan Mara Bhd (PMB), the strategic investment and asset management arm of Majlis Amanah Rakyat, has emerged as a substantial shareholder in loss-making Asia Bioenergy Technologies Bhd with a 6.94% stake. Asia Bioenergy said in its filing with Bursa Malaysia that PMB cumulatively bought 18.32 million of its shares on the open market, between Sept 17 and Sept 22, at prices ranging from 16.5 sen to 16.7 sen. (StarBiz)

Turkey’s biggest hospital chain, Acibadem Saglik Hizmetleri ve Ticaret AS, is close to buying rival Medicana Saglik Grubu, sources said. Acibadem, controlled by Khazanah Nasional Bhd, was the only bidder for Medicana Saglik after Abraaj Group Ltd, a Dubai-based buyout fund, decided against making an offer, the people said. Acibadem was conducting due diligence with the sellers, a source said, adding that an agreement may be signed this year. (StarBiz)

Nexgram Holdings Bhd has proposed to acquire a 70% equity interest in Top Symphony Sdn Bhd for RM24.8m. The company said its unit Nexgram Land Sdn Bhd entered into an with South Venture Holdings Ltd to acquire 4.2 million shares in Top Symphony. Nexgram said the proposed acquisition would allow it to participate in Fiji’s economic development and growth process, which is still currently in the early stages of development. (StarBiz)

Talam Transform (formerly Talam Corp), which was once debt-ridden when under the control of its founder tycoon Tan Sri Chan Ah Chye, has pleaded to be given another chance, saying it has transformed and is on a much stronger footing now. The property firm has crafted a RM5bn, 10-year development plan at a time when Chan, now a director at Talam Transform, re-emerged as a substantial shareholder on Jul 24 this year. Chan now holds an 8.68% stake in the company and is proposing to buy an additional 19.9% stake from Kumpulan Europlus for RM92.4m or 11 sen per share. "Give us a chance, We had never run away [from our commitment to homebuyers]. We have learnt from our past mistakes which saw us over-gearing ourselves to expand our land bank and trying hard at impressing people that we don't even know," Talam executive director Chua Kim Lan said. (Financial Daily)

Proton's compact car Iriz has arrived and buoyed by several months of exposure, it has garnered 17,000 pre-launch bookings to date. Proton Holdings expects Iriz, Proton's 23rd model, to drive its overall sales and help achieve its sales target of 160,000 units a year for all models. The on-the-road price ranges from RM42,438 for the 1.3-litre variant to RM58,268 for the 1.6-litre variant with seven colour choices. (Financial Daily)

Daybreak│Malaysia

September 26, 2014

11

BMSB: Changes in shareholdings

Type of No of Ave Price

25-Sep-14 Date transaction securities Company (RM)

EPF 29/8-5/9 Disposed 6,581,300 PETRONAS CHEMICALS

EPF 22/9 Disposed 3,899,100 DIGI.COM

EPF 19/9-22/9 Disposed 2,192,900 AXIATA GROUP

EPF 22/9 Disposed 1,754,000 SIME DARBY

EPF 22/9 Disposed 1,600,000 YTL CORPORATION

EPF 22/9 Disposed 1,398,100 YTL POWER INTERNATIONAL

EPF 22/9 Disposed 789,400 AFG

EPF 22/9 Disposed 703,600 GAMUDA

EPF 22/9 Disposed 628,100 KUALA LUMPUR KEPONG

EPF 22/9 Disposed 604,200 PUBLIC BANK

EPF 22/9 Disposed 551,200 AMMB HOLDINGS

EPF 22/9 Disposed 450,400 MALAYAN BANKING

EPF 22/9 Disposed 402,000 IHH HEALTHCARE

EPF 22/9 Disposed 340,300 YINSON HOLDINGS

EPF 22/9 Disposed 281,500 MBM RESOURCES

EPF 19/9-22/9 Disposed 266,500 HARTALEGA HOLDINGS

EPF 22/9 Disposed 264,900 PETRONAS GAS

EPF 22/9 Disposed 231,300 POS MALAYSIA

EPF 22/9 Disposed 194,900 FELDA GLOBAL VENTURES

EPF 19/9-22/9 Disposed 105,900 MISC

EPF 22/9 Disposed 100,000 SUPERMAX

EPF 22/9 Disposed 89,200 KPJ HEALTHCARE

EPF 22/9 Disposed 88,700 PRESTARIANG

EPF 22/9 Disposed 56,500 TELEKOM MALAYSIA

EPF 18/9-19/9 Disposed 38,300 NESTLE (MALAYSIA)

EPF 22/9 Disposed 16,300 BAT

Skim Amanah Saham Bumiputera 17/9-18/9 Disposed 32,299,100 TENAGA NASIONAL

Ombak Damai Sdn Bhd 19/9-24/9 Disposed 664,900 BUMI ARMADA

Tune Air Sdn. Bhd. 25/9 Disposed 109,396,300 AIRASIA 2.35

T. Rowe Price Associates, Inc 18/9 Disposed 105,100 ASTRO MALAYSIA

Aberdeen Asset Management PLC 19/9-23/9 Disposed 1,467,200 POS MALAYSIA

Aberdeen Asset Management PLC 24/9 Disposed 24,100 SHANGRI-LA HOTELS

Aberdeen Asset Management PLC 24/9 Disposed 4,000 BAT

Mitsubishi UFJ Financial Group, Inc 18/9 Disposed 61,700 SHANGRI-LA HOTELS

Mitsubishi UFJ Financial Group, Inc 18/9 Disposed 44,600 BAT

Mitsubishi UFJ Financial Group, Inc 18/9 Disposed 25,800 POS MALAYSIA

Mitsubishi UFJ Financial Group, Inc 18/9 Disposed 23,200 CIMB GROUP

Mitsubishi UFJ Financial Group, Inc 18/9 Disposed 4,300 AEON CO. (M)

EPF 22/9 Acquired 3,961,900 SAPURAKENCANA PETROLEUM

EPF 22/9 Acquired 2,596,800 KNM GROUP

EPF 18/9-19/9 Acquired 1,776,600 TENAGA NASIONAL

EPF 22/9 Acquired 1,300,000 SUNWAY REIT

EPF 22/9 Acquired 935,000 IOI PROPERTIES GROUP

EPF 19/9-22/9 Acquired 800,000 KOSSAN RUBBER INDUSTRIES

EPF 22/9 Acquired 632,500 BIMB HOLDINGS

EPF 22/9 Acquired 500,000 UMW HOLDINGS

EPF 22/9 Acquired 413,800 CAHYA MATA SARAWAK

EPF 22/9 Acquired 407,700 DIALOG GROUP

EPF 22/9 Acquired 400,000 EASTERN & ORIENTAL

EPF 22/9 Acquired 278,000 IOI CORPORATION

EPF 22/9 Acquired 259,800 HONG LEONG BANK

EPF 22/9 Acquired 197,000 MALAYSIA AIRPORTS

EPF 22/9 Acquired 75,300 GENTING PLANTATIONS

EPF 22/9 Acquired 62,400 MAXIS

EPF 22/9 Acquired 57,900 TOP GLOVE

EPF 22/9 Acquired 28,700 WCT HOLDINGS

WELLINGTON MANAGEMENT CO, LLP 18/9-23/9 Acquired 23,497,300 AIRASIA

KPJ HEALTHCARE 25/9 Shares Buy Back 60,000 KPJ HEALTHCARE 3.91

DAIBOCHI PLASTIC 25/9 Shares Buy Back 3,500 DAIBOCHI PLASTIC 4.28 SOURCES: BMSB

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BMSB: ESOS & others

26-Sep-14 No Of New Shares Date of Listing Nature of transaction

YTL POWER 1,716,533 26-Sep-14 Exercise of Warrants-18

SUNWAY BERHAD 110,900 26-Sep-14 Exercise of ESOS

TOP GLOVE 11,800 26-Sep-14 Exercise of ESOS SOURCES: BMSB

BMSB: Off-market transactions

25-Sep-14 Vol

AIRASIA 109,396,300

BJLAND 67,000,000

SUMATEC 20,000,000

KINSTEL 6,380,000

CONNECT 2,898,800

BORNOIL-WB 1,000,000

HHHCORP 860,000

XINQUAN 500,000 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

26-Sep-14 Ann Date Proposed

ECO WORLD 25-Apr-14 1 Rights @ 2, 4 Free Warrants @ 5, Private Placement

SBC CORP 27-May-14 Bonus issue 1:2

ASIA FILE CORP 6-Aug-14 Bonus issue 3:5

GHL SYSTEMS 20-Aug-14 Bonus issue 1:2

EASTERN &

ORIENTAL

5-Sep-14 Bonus issue 1:10, Free Warrants 1:5

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

BENALEC

HOLDINGS

12-Sep-14 > RM200m of 7-year Redeemable Convertible Secured Bonds SOURCES: BMSB, TE: Tax Exempt

BMSB: Proposed cash calls & trading of rights…

26-Sep-14 Ann Date Proposed

ECO WORLD 25-Apr-14 1 Rights @ 2, 4 Free Warrants @ 5, Private Placement

SBC CORP 27-May-14 Bonus issue 1:2

ASIA FILE CORP 6-Aug-14 Bonus issue 3:5

GHL SYSTEMS 20-Aug-14 Bonus issue 1:2

EASTERN & ORIENTAL 5-Sep-14 Bonus issue 1:10, Free Warrants 1:5

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

BENALEC HOLDINGS 12-Sep-14 > RM200m of 7-year Redeemable Convertible Secured Bonds SOURCES: BMSB

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BMSB: Dividends

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

KPJ HEALTHCARE Interim dividend - single tier 1.45 26-Aug-14 26-Sep-14 30-Sep-14 21-Oct-14

GENTING Interim dividend - single tier 1.00 28-Aug-14 26-Sep-14 30-Sep-14 27-Oct-14

GENTING MALAYSIA Interim dividend - single tier 3.00 28-Aug-14 26-Sep-14 30-Sep-14 21-Oct-14

GENTING PLANTATIONS Interim dividend - single tier 3.00 27-Aug-14 26-Sep-14 30-Sep-14 17-Oct-14

CIMB GROUP HOLDINGS 1st interim dividend - single tier 10.00 15-Sep-14 26-Sep-14 30-Sep-14 17-Oct-14

DRB-HICOM Final dividend - single tier 4.50 5-Sep-14 1-Oct-14 3-Oct-14 30-Oct-14

ASTRO MALAYSIA 2nd interim dividend - single tier 2.25 19-Sep-14 2-Oct-14 7-Oct-14 20-Oct-14

AXIATA GROUP Interim dividend - single tier 8.00 5-Sep-14 7-Oct-14 9-Oct-14 24-Oct-14

BERJAYA SPORTS TOTO 1st interim dividend - single tier 5.50 19-Sep-14 7-Oct-14 9-Oct-14 24-Oct-14

EASTERN & ORIENTAL 1st & final dividend - single tier 3.00 22-Aug-14 8-Oct-14 10-Oct-14 5-Nov-14

SBC CORP 1st & final dividend - single tier 4.75 5-Sep-14 14-Oct-14 16-Oct-14 3-Nov-14

YTL CORPORATION 3rd interim dividend - single tier 9.50 28-Aug-14 29-Oct-14 31-Oct-14 14-Nov-14

YTL POWER Interim dividend - single tier 10.00 28-Aug-14 29-Oct-14 31-Oct-14 14-Nov-14

THONG GUAN INDUSTRIES Interim dividend - single tier 3.00 22-Aug-14 5-Nov-14 7-Nov-14 18-Nov-14

ASIA FILE CORP Final dividend - single tier 13.50 4-Sep-14 26-Nov-14 28-Nov-14 26-Dec-14

SOURCES: BMSB

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Corporate Actions

September 2014

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6

Replacement for National Day

External Trade

7 8 9 10 11 12 13

External Reserves (month-end data)

Industrial Production

14 15 16 17 18 19 20

Malaysia Day SP Setia 3Q, CPI MPC Decision B-Toto 1Q, Astro 2Q

21 22 23 24 25 26 27

External Reserves

(mid-month data)

SapuraKencana 2Q,

Pengkalan Kubor by-election

28 29 30

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

October 2014

SUN MON TUE WED THU FRI SAT

1 2 3 4

5 6 7 8 9 10 11

Hari Raya Qurban Replacement for Hari Raya Qurban

External Trade External Reserves (month-end data)

2015 Budget Industrial Production

12 13 14 15 16 17 18

CPI

19 20 21 22 23 24 25

Foreign Reserves (mid-month data)

Deepavali Awal Muharram

26 27 28 29 30 31

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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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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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.

*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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