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age 1

In Singapore, this research report or research analyses may only be distributed to InstitutionalInvestors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act,Chapter 289 of Singapore.

Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd(DBSVR), are to contact DBSVR at +65 6535 9688 in respect of any matters arising fromor in connection with this report.

www.dbsvickers.com

Refer to important disclosures at the end of this report

ed-OY / sa- MH

Not that defensive

Weak performance of F&B market. Most of the F&B sub-

segments recorded disappointing outputs in March 12,

especially for alcoholic drinks, partly due to the weak macro

situation. The beer and soft drink markets were adversely

affected by the cold weather. Two exceptions were the dairy

and confectionery markets, which should benefit China

Mengniu and Want Want (151 HK HOLD).

Hog prices

have plunged by over 25% since their peak in October 11, in

line with our forecast in 4Q11. This is due to increased pig

stocks. But the magnitude of decline has overtaken the

markets forecast, as well as the guidance of companies likeYurun and Peoples Food (PFH SP). Hence, we think there

might be further downside risk for the 1Q12 result of Yurun.

Wine,

both local and imported, has been facing tough times, since

1Q12, affected by the slowdown of economy in China. That

should post short-term pressures for wine companies like

China Foods (506 HK) and Changyu (000869 CH). In fact,

Changyus sales growth has slowed down to 2-3% in 4Q11,

and might even turn negative in 1Q12.

We suggest to long China Mengniu for

the more defensive dairy market in terms of growth, as well as

the stabilizing raw milk costs. Short target is China Yurun. Webelieve their profits in 1Q12 would be affected by the sharp

plunge in hog prices, as they would not have been able to

adjust their inventory in time.

Our top buys remain China Mengniu, China

Foods and China Resources Ent (291 HK BUY) for their positive

margin outlook. Our top-sells are Dynasty (828 HK; FV) and

Tsingtao Brewery (168 HK; FV) for their low operating

efficiencies; as well as Yurun for its deteriorating cash flow and

sluggish recovery.

Titus Wu CFA (852) 2820 4611 [email protected]

Alice HUI, CFA (852) 2971 1960 [email protected]

Highlights of the Month

Industry

Direction Sector Story Stocks related

OutperformDairy,

ConfectioneryStrong ou put

China Mengniu,

Want Want

UnderperformWine, Beer,

Beverage

Weak macro and

cold weather

Tingyi, Tsingtao,

China Foods

Company

Positive/ Negative Stocks Code Story

Positive Mengniu 2319 HKStablizing raw milk price and

still robus t industry growth

Negative Yurun 1068 HK Sharp plunge of hog price

Source: DBS Vickers

Chart of the Month: Output of Wine in China

0

20

40

60

80

100

120

140

Nov-09

Jan-10

Mar-10

May-10

Jul-10

Sep-10

Nov-10

Jan-11

Mar-11

May-11

Jul-11

Sep-11

Nov-11

Jan-12

Mar-12

mn litre

(20)

0

20

40

60

80

100

120

Litre mn yoy %

Yoy growth%

Source: CEIC

DBS Group Research . Equity 24 April 2012

China / Hong Kong Monthly Chart Book

Food & Beverage Cart -April Episode

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Food & Beverage

Page 2

Table of Contents

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F&B Valuation matrix

Company Code Segem ents

F&B

ForwardPEx 2006-

2011

Industry

Growth

Market

Presence

Profitability

Outlook

Sensitivityto input

cost

Financial

Health

Trading

liquidity

Trackrecord

& Mgt

M

cata

Mengniu 2319 HK Dairy 10% 20% 10% -10% 10% 5% -10% 1

Kitchen food 0% 10% 0% -20%

Wine 30% 20% 15% 0%

Beverages 30% 20% -5% -10%

Confectionery 10% 10% 0% -5%

Total

Beer 5% 30% 20% -10%

Beverage 30% 5% 0% -10%

Food 5% 5% 0% -10%

F&B Total

Retail

Total

Rice cracker 0% 30% 5% 0%

Beverage 20% 15% -5% -5%

Snacks 5% 5% 0% 0%

Others 0% 0% 0% 0%

Total

Instant Noodle 0% 30% 5% -10%

Beverage 30% 20% -10% -10%

Bakery 15% 5% 0% -5%

Others 0% 0% 0% 0%

Total

Yurun* 1068 HK Meat 0% 10% -10% -15% -10% 0% -40% 1

Dynasty* 828 HK Wine 30% 10% 5% -5% 5% -10% -30%

Tsingtao 168 HK Beer 5% 20% -5% -10% 5% 0% 5% 1

China F&B DBSV Coverage

0%

10%

10%

10%Want

Want

16

506 HKChinaFoods

CR E

Tingyi

291 HK

322 HK

151 HK

Premium / discoun t

10% 0%

10% 10% 1

20% 1

5% 0% 1

5%

Source: DBS Vickers

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Food & Beverage

Page 4

Valuation table

Target Mkt PE PE Yield Yield P/Bk P/Bk ROE ROE

Currency Price Price Rec Cap^ Fiscal 12F 13F 12F 13F 12F 13F 12F 13F

Company Name Code HK$ HK$ US$m Yr x x % % x x % %

HK-listed

Wine Sector

China Foods* 506 HK HKD 7.81 8.8 Buy 2,811 Dec-11 23.1 17.6 1.6 2.1 2.9 2.6 13.3 15.6

Dynasty Fine Wines* 828 HK HKD 1.51 1.49 FV 243 Dec-11 34.2 19.5 1.2 2.0 0.9 0.9 2.7 4.6

China Tontine Wines 389 HK HKD 0.88 n.a. NR 228 Dec-11 6.5 6.5 n.a. n.a. n.a. n.a. 9.2 9.9

Average 21.3 14.5 1.4 2.0 1.9 1.7 8.4 10.0

Brewery Sector

Tsingtao Brewery-H* 168 HK HKD 44.85 38.0 FV 3,786 Dec-11 24.6 22.0 0.7 0.8 3.9 3.4 16.8 16.4

China Resources Ent.* 291 HK HKD 27.7 33.0 Buy 8,565 Dec-11 21.1 16.2 1.9 2.5 2.0 1.8 9.5 11.6

Kingway Brewery 124 HK HKD 2.92 n.a. NR 644 Dec-11 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.Average 22.9 19.1 1.3 1.6 2.9 2.6 13.1 14.0

Dairy Sector

China Mengniu* 2319 HK HKD 22.95 32.0 Buy 5,227 Dec-11 16.3 12.6 1.3 1.8 2.5 2.2 16.4 18.4

Daqing Dairy 1007 HK HKD 1.68 n.a. NR 219 Dec-10 4.0 3.3 6.2 7.5 0.6 0.6 17.1 17.9

Yashili Int'l 1230 HK HKD 1.21 n.a. NR 549 Dec-11 9.8 9.5 5.4 5.7 0.9 0.8 9.1 8.2

Ausnutria Dairy 1717 HK HKD 1.46 n.a. NR 186 Dec-10 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Biostime Int'l 1112 HK HKD 21.8 n.a. NR 1,692 Dec-11 15.9 12.3 3.0 3.8 4.7 3.8 30.4 32.5

Average 11.5 9.4 4.0 4.7 2.2 1.8 18.2 19.2

Instant Noodle & Beverage and Others

Tingyi* 322 HK HKD 20.5 20.0 FV 14,769 Dec-11 27.7 21.8 1.8 2.3 6.1 5.2 23.5 25.8

Want Want* 151 HK HKD 9.14 7.1 Hold 15,578 Dec-11 29.8 23.7 1.7 2.1 9.3 7.5 34.8 35.1

Besunyen 926 HK HKD 0.66 n.a. NR 142 Dec-11 2.6 2.0 9.3 12.3 0.4 0.4 16.9 18.5

Uni-President 220 HK HKD 6.2 n.a. NR 2,876 Dec-11 28.2 21.0 0.9 1.3 2.4 2.1 8.7 10.7

China Huiyuan 1886 HK HKD 2.8 n.a. NR 533 Dec-11 16.0 15.2 1.4 1.5 0.6 0.6 3.8 4.1

Average 20.9 16.7 3.0 3.9 3.8 3.2 17.5 18.9

Slaughter Sector

China Yurun* 1068 HK HKD 9.9 7.6 FV 2,325 Dec-11 12.2 10.0 2.0 2.5 1.0 1.0 8.8 9.9

Sumpo Food 1089 HK HKD 0.53 n.a. NR 113 Dec-11 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Average 12.2 10.0 2.0 2.5 1.0 1.0 8.8 9.9

HK-listed average 19.0 14.8 2.7 3.4 2.7 2.3 15.1 16.4

^ H-share market cap for H-share

Source: Bloomberg, *DBS Vickers

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Valuation table (continued)

Mkt PE PE Yield Yield P/Bk P/Bk ROE ROE

Currency Price Cap^ Fiscal 12F 13F 12F 13F 12F 13F 12F 13FCompany Name Code HK$ US$m Yr x x % % x x % %

A-share listed

Wine Sector

Yantai Changyu 000869 CH CNY 95.05 5,255 Dec-10 20.9 16.7 1.9 2.4 7.9 6.3 40.9 38.1

Tonghua Grape Wine 600365 CH CNY 7.89 175 Dec-11 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Gansu Mogao 600543 CH CNY 9.89 503 Dec-11 33.0 21.5 n.a. n.a. 2.6 2.4 7.9 11.0

CITIC Guoan Vine 600084 CH CNY 7.54 968 Dec-11 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Average 26.9 19.1 1.9 2.4 5.3 4.3 24.4 24.6

Brewery Sector

Beijing Yanjing 000729 CH CNY 15.19 3,037 Dec-11 17.5 14.7 n.a. n.a. n.a. n.a. 11.1 11.8

Chongqing Brewery 600132 CH CNY 25.63 1,966 Dec-11 56.6 50.8 n.a. n.a. 7.2 6.6 12.8 12.9

Guangzhou Zhujiang 002461 CH CNY 11.07 1,193 Dec-11 61.5 55.4 n.a. n.a. n.a. n.a. n.a. n.a.

Average 45.2 40.3 n.a. n.a. 7.2 6.6 11.9 12.4

Dairy Sector

Inner Mongolia Yili 600887 CH CNY 22.38 5,671 Dec-11 17.9 14.7 0.6 1.0 4.2 3.4 24.4 22.6

Beijing Sanyuan 600429 CH CNY 6.74 946 Dec-11 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Guangxi Royal Dairy 002329 CH CNY 13.9 472 Dec-11 30.7 25.6 0.9 1.2 3.0 2.8 8.7 10.1

Bright Dairy 600597 CH CNY 9.27 1,542 Dec-11 32.6 24.5 n.a. n.a. 3.5 3.1 9.5 10.6

Beingmate 002570 CH CNY 22.53 1,522 Dec-11 18.1 14.5 1.7 2.1 2.7 2.4 15.8 17.6

Average 24.8 19.9 1.1 1.4 3.4 2.9 14.6 15.2

Beverage and Others

Hebei Chengde Lolo 000848 CH CNY 14 810 Dec-11 19.6 16.7 2.9 3.4 4.5 3.7 25.9 25.1

Zhengzhou Sanquan 002216 CH CNY 27.19 867 Dec-11 26.3 20.2 n.a. n.a. 2.4 2.2 10.2 12.1

Average 23.0 18.5 2.9 3.4 3.5 2.9 18.0 18.6

Slaughter SectorHenan Shuanghui 000895 CH CNY 65.39 6,281 Dec-11 19.3 15.0 1.1 2.1 7.4 6.1 33.2 32.6

Sichuan Gaojin 002143 CH CNY 8.51 217 Dec-10 70.9 n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Shandong Delisi 002330 CH CNY 12.69 505 Dec-11 33.8 25.6 n.a. n.a. n.a. n.a. n.a. n.a.

Average 41.4 20.3 1.1 2.1 7.4 6.1 33.2 32.6

Chinese Liqueor Sector

Wuliangye 000858 CH CNY 34.37 20,681 Dec-11 15.1 11.9 1.6 2.0 4.3 3.3 29.2 29.1

Kweichow Moutai 600519 CH CNY 211.8 34,861 Dec-11 18.7 13.9 1.6 2.5 6.5 4.9 38.3 38.4

Luzhou Laojiao 000568 CH CNY 41.98 9,278 Dec-10 15.3 12.2 3.8 4.7 6.9 5.6 48.0 48.7

Sichuan Swellfun 600779 CH CNY 22.76 1,763 Dec-10 28.5 24.7 n.a. n.a. n.a. n.a. n.a. n.a.

Shanxi Xinghuacun 600809 CH CNY 69.98 4,802 Dec-11 24.2 17.0 1.1 1.5 8.2 5.9 39.9 41.9

JS Yanghe Brewery 002304 CH CNY 157.2 22,425 Dec-11 22.8 15.7 1.2 1.6 9.5 6.5 46.5 44.6

Average 20.8 15.9 1.9 2.5 7.1 5.3 40.4 40.5

A-share listed average 29.8 22.0 1.7 2.2 5.6 4.5 25.8 26.0

Multinational Companies

Nestle SA NESN VX CHF 55.5 200,471 Dec-11 16.7 15.3 3.7 4.0 2.9 2.8 17.9 18.3

Unilever PLC ULVR LN GBp 2068 42,796 Dec-11 15.8 14.4 3.8 4.1 4.3 3.8 28.3 27.2

Coca-Cola KO US USD 73.69 166,776 Dec-11 18.0 16.4 2.8 3.0 4.9 4.6 28.0 28.8

PepsiCo PEP US USD 66.18 103,945 Dec-11 16.2 14.9 3.2 3.4 4.8 4.6 30.8 32.8

Danone BN FP EUR 53.13 44,880 Dec-11 16.5 15.0 2.8 3.1 2.4 2.3 15.0 15.1

Kraft Foods KFT US USD 37.99 67,321 Dec-11 15.0 13.5 3.1 3.3 1.8 1.6 12.3 12.7

Smithfield Foods~ SFD US USD 20.28 3,266 Apr-11 7.3 7.0 0.0 0.0 0.8 0.7 11.2 10.1

Hormel Foods HRL US USD 28.21 7,438 Oct-11 15.6 14.6 2.1 2.3 2.8 2.6 18.0 17.7

Tyson Foods TSN US USD 17.66 5,279 Sep-11 8.7 7.6 0.9 0.9 1.1 1.0 12.7 12.7

Average 14.4 13.2 2.5 2.7 2.9 2.7 19.4 19.5

~ FY12: FY13F; FY13: FY14F

Source: Bloomberg, *DBS Vickers

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Page 6

F&B Industry Dynamics

China F&B Industries

Dec2011

Inventory

quarterly

y-o-y m-o-m

YTD y-

o-y

Value

YTD

YTD y-

o-y

Value

YTD

Value

YTD y-o-y q-o-q

YTD

y-o-y y-o-y

% % % RMB bn % % % % % % %

Beer (5.3) 18.6 0.4 19.8 9.6 28.8 3.5 12.5 (42.3) 9.2 11.9

Baijiu 10.9 (12.8) 23.2 81.3 35.6 40.2 17.8 20.8 53.3 17.0 16.6

Canned food 10.9 27.1 13.9 18.1 37.3 14.2 4.3 (3.5) 0.6 0.7 35.2

Dairy 6.4 14.8 5.8 35.0 16.2 23.8 5.8 11.2 1.9 10.7 18.9

Edible vegetable oil 8.2 16.5 9.5 113.7 18.5 7.2 3.3 6.8 10.8 11.6 17.9

Sugar 32.2 (17.0) 16.1 15.8 13.3 15.8 4.5 18.4 20.1 (0.3) 32.4

Soft drink 14.7 21.9 11.3 63.8 15.9 22.5 7.4 16.1 (11.1) 18.7 -

Carbonated drink 4.0 14.6 (7.0) 12.4 12.2 25.8 0.3 - - - -

Tea 58.0 85.9 36.1 10.0 6.6 25.3 9.9 - - - -

Water 36.6 18.8 37.6 9.9 19.1 21.5 7.3 - - - -

Confectionary 17.3 45.3 7.3 19.4 17.4 28.5 12.3 - - - -

Slaughter & Meat

Processing 21.3 6.1 21.2 141.1 23.1 11.5 4.6 - - - -

Instant noodle 20.0 25.6 18.3 23.2 45.7 21.5 9.0 - - - -Flavoring 15.9 12.4 19.3 28.8 21.9 18.4 7.3 - - - -

Ice cream (5.5) 41.1 8.2 3.5 31.4 23.6 7.6 - - - -

Grape wine (6.1) (7.2) 6.8 123.2 27.7 35.4 14.0 - - - -

Food & Beverage

Sub-sectors

Gross

Margin

F eb2012 F eb2012

Production volume

Mar2012

Prosperity

Index

Sales volume

quarterly

Dec2011Feb2012

Sales revenue

Profit

Margin

Source: CEIC

Baijiu affected by theslowdown of economy

Beer and beverage affected bythe chilled weather in Mar

Wine affected by the weakmacro

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Page 7

Sensitivity Analysis to Raw Materials

Sensitivity analysis

YTD y-o-y % Change %

FY12 vs

FY11 %

CompanyStockcode Segments Materials

% ofCOGS Apr-12 Apr-12 Mar-12 Apr vs Mar

DBSAssumption

Revenuebreakdown

EBITbreakdown

Impact to

Grossmargin ppt

Impact

to totalprofit

322 HK Beverage Sugar 10% (7.7) (7.4) (7.6) 0.3 (10) (0.0) -0.1%

PET 60% (10.4) (2.9) (4.3) 1.4 0 (0.8) -4.2%

Instant noodle Palm oil 14% (8.3) 2.1 (0.5) 2.6 (9) (0.3) -1.1%

Wheat flour 16% (7.3) (6.0) (6.5) 0.4 10 (0.1) -0.3%

Total -5.7%

151 HK Rice cracker Rice 16% 11.9 8.0 7.2 0.8 10 (0.1) -0.1%

Palm oil 12% (8.3) 2.1 (0.5) 2.6 (9) (0.2) -0.1%

Sugar 6% (7.7) (7.4) (7.6) 0.3 (10) (0.0) 0.0%

Film 29% (10.4) (2.9) (4.3) 1.4 0 (0.2) -0.2%

Beverage Milk powder 33% (15.7) (8.5) (7.5) (1.0) (10) 0.2 0.3%

Sugar 4% (7.7) (7.4) (7.6) 0.3 (10) (0.0) 0.0%

Tin 50% (25.5) (12.4) (11.8) (0.7) (20) 0.2 0.3%

Snacks Milk powder 6% (15.7) (8.5) (7.5) (1.0) (10) 0.0 0.0%

Sugar 17% (7.7) (7.4) (7.6) 0.3 (10) (0.0) 0.0%

Film 33% (10.4) (2.9) (4.3) 1.4 0 (0.3) -0.2%

Total 0.0%

2319 HK Milk China Raw milk 50% 2.3 2.1 2.1 0.0 5 100% 100% - 0.0%

Total 0.0%

506 HK Beverage Sugar 15% (7.7) (7.4) (7.6) 0.3 (10) 39% 44% (0.0) -0.2%

Aluminum 20% (3.7) (4.9) (4.8) (0.1) (5) 0.0 0.1%

PET 15% (10.4) (2.9) (4.3) 1.4 0 (0.1) -1.2%

Confectionary Cocoa 50% (30.1) (21.8) (20.7) (1.1) (20) 2% 1% 0.3 0.2%

Total -1.2%

291 HK Beer Barley 15% 17.5 9.6 7.3 2.3 0 23% 44% (0.2) -1.1%

Rice 8% 11.9 8.0 7.2 0.8 10 (0.0) -0.2%

Beverage PET 70% (10.4) (2.9) (4.3) 1.4 0 3% 5% (0.6) -0.4%

Total -1.7%

168 HK Beer Barley 15% 17.5 9.6 7.3 2.3 0 100% 100% (0.2) -2.0%

Rice 8% 11.9 8.0 7.2 0.8 10 (0.0) -0.4%

Total -2.4%

1007 HK Infant formula China Raw milk 50% 2.3 2.1 2.1 0.0 5 95% 99% - 0.0%

Total 0.0%

CRE

Tsingtao

Daqing Dairy

Mengniu

China Foods

Want Want

27% 28%

48% 44%

24% 28%

YTD vs. FY11 Montly movement impact to profit in FY12

Tingyi

52% 48%

44% 50%

Source: CEIC, DBS Vickers, Company

Note: The sensitivity analysis assumes the prices of materials used by companies are marked to the market value on real-time basis.

Barley price remains highPET prices still hiking

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Slaughter Industry Snapshot

China Slaughter Industry

Value y-o-y m-o-m Value y-o-y m-o-m Value y-o-y m-o-m

% % % % % %

Pig to Feedstuff Ratio x 6.5 (7.1) (8.4) 7.1 5.9 (3.6) 7.4 12.2 1.9

Hog Price rmb/kg 15.7 3.5 (6.8) 16.9 16.9 (3.1) 17.4 24.1 2.1

Corn wholesale price rmb/kg 2.4 11.4 1.8 2.4 10.4 0.6 2.4 10.6 0.2

Ex-Factory pork price rmb/kg 21.3 9.1 (6.8) 22.8 20.1 (3.4) 23.6 28.2 2.7

Piglet price rmb/kg 32.66 43.15 3.67 31.5 61.9 4.3 30.2 62.0 2.6

Slaughter profit rmb/kg 5.6 28.9 (6.6) 6.0 30.2 (4.4) 6.2 41.5 4.4

Number of Slaughtered Fattened Hogs 000 17,831 5.23 21.03 14,733 11.8 (26.9) 20,142 (18.4) (9.8)

Number of Pig Stock 000 461,670 3.17 0.70 458,460 3.23 (1.34) 464,670 4.4 (1.8)

Number of Sow Pig Stock 000 49,540 5.18 0.10 49,490 4.63 (0.02) 49,500 4.4 0.4

China Slaughter

Mar2012 Feb2012 Jan2012

Unit

Source: CEIC

Hog price still in downtrend

Slaughter profit continued todecline

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Price Trend of F&B Goods

Pricing of F&B goods

Price change o f

Food & Beverage goods y-o-y m-o-m YTD y-o-y y-o-y m-o-m YTD y-o-y

China % % % % % %

Edible oil

Soybean Oil 5.3 0.3 5.9 5.3 (0.1) 6.0

Peanut Oil 10.4 0.3 10.7 10.3 0.1 10.8

Meat & poultry

Pork 3.9 (4.5) 15.1 10.0 (6.1) 19.0

Beef 16.4 1.2 15.8 15.6 0.1 15.5

Mutton 20.1 0.4 20.9 19.3 (1.0) 21.2

Chicken 7.7 0.0 8.9 8.3 (0.5) 9.3

Egg (0.2) (0.8) (0.1) (2.2) (3.9) (0.1)

Grain

Rice 7.8 0.0 10.3 9.1 (0.1) 11.2

Flour 4.9 0.1 6.2 5.4 (0.3) 6.6

Dairy

Milk 8.6 0.1 9.8 9.9 0.4 10.2

Yogurt 10.7 0.4 11.5 11.9 0.9 11.8

Infant formula local brands 9.2 0.6 9.2 9.2 0.6 9.2

Infant formula foreign brands 5.7 0.4 5.6 5.6 0.2 5.6

Fruit & Vegetable

Cabbage 119.8 3.1 52.8 82.5 19.6 35.9

Apple (1.9) 1.2 (3.6) (5.0) (2.2) (4.2)

Mar2012Apr2012

Source: CEIC

Edible Oil pricesinched u

Pork pricecontinued toplunge

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Price Trend of products of major F&B brands in China

Pricing of F&B brands

Price change o f

Food & Beverage goods y-o-y m-o-m YTD y-o-y y-o-y m-o-m YTD y-o-y

by brands in China % % % % % %

Beer

Snow light 22.4 15.9 7.7 (5.4) (11.7) 3.4

Tsingtao (18.7) 3.2 (10.8) (13.6) (13.9) (8.0)

Yanjing 0.5 0.0 0.6 0.5 0.0 0.7

Budweiser 0.4 1.6 0.2 (2.4) (5.6) 0.2

Carlsberg (13.7) (2.2) (2.7) (3.7) (12.8) 1.3

Harbin (5.8) 5.3 (5.0) (10.9) (13.0) (4.8)

Heineken 1.1 26.8 (3.5) (12.6) (19.7) (5.1)

WineGreatwall Huaxia 95 (23.3) 0.0 (6.2) (22.8) (10.1) (0.7)

Changyu Cabernet (8.6) 0.0 3.8 31.3 8.1 8.9

Dynasty Cabernet 2.9 0.0 15.6 8.5 (15.7) 20.3

Weilong Cabernet (24.8) 0.0 (18.7) (19.6) (10.2) (16.6)

Chinese liqueur

Wuliangye 52 42.1 0.9 42.4 31.7 4.3 42.4

Moutai53 54.2 (10.1) 66.6 79.2 9.3 70.8

Guojiao1573 52 62.0 3.8 68.6 59.3 (4.1) 71.0

Langjiu 36 (16) 36.7 72.5 129.6 37.1

Apr2012 Mar2012

Source: TJKX.com

Beer brandsraising ASP

Weakening prices of Baijiu brands

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Food & Beverage

Page 12

China Export and Import of F&B Goods

China Export and Import

Volume y-o-y YTD y-o-y Total

volumeVolume y-o-y YTD y-o-y

Totalvolume

000 tons % % 2011 000 tons % % 2011

Rice 66 186.2 104 28.4 598 22 32.9 78.0 7.3 516

Corn 521 49440.5 1,272 40782.4 1,754 0 (25.9) 2.7 126.7 136

Sugar 90 350.0 230 666.7 2,920 3 8.1 7.8 (22.3) 59

Edible oil 550 34.1 1,170 14.7 6,560 11 135.1 22.6 79.1 122

Soybean oil 140 27.3 270 0.0 1,140 7 374.9 16.4 251.7 51

Soybean 3,830 65.1 8,440 13.1 52,630 10 0.0 20.0 0.0 210

Wheat 373 219.2 587 231.8 1,258

Flour 1 (11.9) 2 28.2 9

Palm oil 290 16.0 670 15.5 4,700

Wine* 31,196 137.4 63,548 (0.4) 390,974

Barley 100 37.0 220 143.7 1,776

Casing 3 (16.3) 10.6 0.4 86

*'000 litre

Feb2012Export

Agriculturalmaterials

ImportFeb2012

YTD

Volume

YTD

Volume

Source: CEIC, DBS Vickers

Import of sugar and corn surges significantly

Disappointing wine import in 1Q12 affectedby the weak macro

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Food & Beverage

Page 13

Glance by sub-sector

Beer

Production volume Beer Retail price

0

1,000

2,000

3,0004,000

5,000

6,000

7,000

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

mn litre

(10.0)

(5.0)

0.0

5.010.0

15.0

20.0

25.0

Production volume y-o-y

Yoy growth%

0.00

0.50

1.00

1.50

2.002.50

3.00

3.50

4.00

4.50

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

rmb/bottle

Beer Retail price: Snow Light Beer Retail price: Tsingtao

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

rmb/bottle

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

rmb/bottle

Source: CEIC, TJKX

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Food & Beverage

Page 14

Materials: Barley price ( Canadian ) Materials: Rice price ( China )

0.0

0.5

1.01.5

2.0

2.5

3.0

3.5

4.0

4.5

Jul2009

Sep2009

Nov2009

Jan2010

Mar2010

May2010

Jul2010

Sep2010

Nov2010

Jan2011

Mar2011

May2011

Jul2011

Sep2011

Nov2011

Jan2012

Mar2012

US$/BSL

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

Jul2009

Sep2009

Nov2009

Jan2010

Mar2010

May2010

Jul2010

Sep2010

Nov2010

Jan2011

Mar2011

May2011

Jul2011

Sep2011

Nov2011

Jan2012

Mar2012

RMB/ton

Source: CEIC

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Food & Beverage

Page 15

Wine

Production volume Wine Retail price: Greatwall Huaxia 95

0

2040

60

80

100

120

140

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

mn litre

(20.0)

(10.0)

0.0

10.0

20.0

30.0

40.0


Yoy growth%

0.0

20.0

40.0

60.080.0

100.0

120.0

140.0

160.0

180.0

200.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

rmb/75cl

Wine Retail price: Changyu Cabernet Import: Wine

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

rmb/75cl

0

10,000

20,000

30,000

40,000

50,000

60,000

Jan2

010

Feb2

010

Mar2

010

Apr2

010

May2

010

Jun2

010

Jul2

010

Aug2

010

Sep2

010

Oct2

010

Nov2

010

Dec2

010

Jan2

011

Feb2

011

Mar2

011

Apr2

011

May2

011

Jun2

011

Jul2

011

Aug2

011

Sep2

011

Oct2

011

Nov2

011

Dec2

011

Jan2

012

Feb2

012

'000 litre

Source: CEIC

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Food & Beverage

Page 16

Dairy

Production volume Total Dairy Production volume Liquid milk

0

500

1,000

1,500

2,000

2,500

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

'000 tons

0.0

5.0

10.0

15.0

20.0

25.0


Yoy growth%

0

500

1,000

1,500

2,000

2,500

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

'000 tons

0.0

5.0

10.0

15.0

20.0

25.0


Yoy growth%

Production volume Milk powder Milk Retail price

0

20

40

60

80

100

120

140

160

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

'000 tons

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0


Yoy growth%

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.010.0

Jan2

011

Feb2

011

Mar2

011

Apr2

011

May2

011

Jun2

011

Jul2

011

Aug2

011

Sep2

011

Oct2

011

Nov2

011

Dec2

011

Jan2

012

Feb2

012

Mar2

012

Apr2

012

rmb/kg

Source: CEIC

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Food & Beverage

Page 17

Yogurt Retail price Infant formula local brands

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/kg

80.0

90.0

100.0

110.0

120.0

130.0

140.0

150.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/kg

Infant formula foreign brands Retail price: Mengniu milk

80.090.0

100.0110.0120.0130.0140.0

150.0160.0170.0180.0190.0200.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/kg

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

rmb/pack

Source: CEIC

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Food & Beverage

Page 18

Raw milk price China Whole milk powder New Zealand

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

RMB/kg

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

US$/ton

Source: CEIC

Skimmed milk powder New Zealand Feedstuff: Corn

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

Oct20

07

Dec20

07

Feb20

08

Apr20

08

Jun20

08

Aug2

00

Oct20

08

Dec20

08

Feb20

09

Apr20

09

Jun20

09

Aug2

00

Oct20

09

Dec20

09

Feb20

10

Apr20

10

Jun20

10

Aug2

01

Oct20

10

Dec20

10

Feb20

11

Apr20

11

Jun20

11

Aug2

01

Oct20

11

Dec20

11

Feb20

12

Apr20

12

US$/ton

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

rmb/ton

Source: CEIC

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Food & Beverage

Page 19

Soft drink

Production volume Soft drink Production volume Carbonated drink

0

2,000

4,0006,000

8,000

10,000

12,000

14,000

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

'000 tons

(10.0)

0.0

10.0

20.0

30.0

40.0

50.0


Yoy growth%

0200400600800

1,0001,2001,4001,6001,8002,000

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

'000 tons

(40.0)

(20.0)

0.0

20.0

40.0

60.0

80.0


Yoy growth%

Production volume Juice Production volume Tea

0200400600800

1,0001,2001,4001,6001,8002,000

J

an-1

0

F

eb-1

0

M

ar-10

A

pr-10

M

ay-1

0

Jun-1

0

Jul-10

Aug-1

0

S

ep-1

0

O

ct-10

N

ov-1

0

D

ec-1

0

J

an-1

1

F

eb-1

1

M

ar-11

A

pr-11

M

ay-1

1

Jun-1

1

Jul-11

Aug-1

1

S

ep-1

1

O

ct-11

N

ov-1

1

D

ec-1

1

J

an-1

2

F

eb-1

2

'000 tons

(40.0)

(20.0)

0.0

20.0

40.0

60.0

80.0

100.0


Yoy growth%

0

50

100

150

200

250

300

Jan-1

0

Feb-1

0

M

ar-10

A

pr-10

M

ay-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

O

ct-10

Nov-1

0

D

ec-1

0

Jan-1

1

Feb-1

1

M

ar-11

A

pr-11

M

ay-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

O

ct-11

Nov-1

1

D

ec-1

1

Jan-1

2

Feb-1

2

M

ar-12

'000 tons

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0


Yoy growth%

Source: CEIC

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Food & Beverage

Page 21

PET Sugar

0.0

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0

12,000.0

14,000.0

16,000.0

18,000.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

RMB/ton

0.0

1,000.0

2,000.0

3,000.0

4,000.0

5,000.0

6,000.0

7,000.0

8,000.0

9,000.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

RMB/ton

Aluminium Tin

0.0

5,000.0

10,000.0

15,000.0

20,000.0

25,000.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

RMB/ton

0.0

5,000.0

10,000.0

15,000.0

20,000.0

25,000.0

30,000.0

35,000.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

US$/ton

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Food & Beverage

Page 22

Orange juice

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

4,500.05,000.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

US$ton

Source: CEIC

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Food & Beverage

Page 23

Slaughter

Production volume - Fresh & Refrigerated Meat Hog price

0

500

1,0001,500

2,000

2,500

3,000

3,500

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

'000 tons

0.0

5.0

10.015.020.0

25.0

30.035.0

40.0

45.0


Yoy growth%

0

5

10

15

20

25

Jan2010

Feb2010

Mar2010

Apr2010

May2010

Jun2010

Jul2010

Aug2010

Sep2010

Oct2010

Nov2010

Dec2010

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

Rmb/kg

Ex-factory pork price Slaughter profit

0

5

10

15

20

25

30

Jan2010

Feb2010

Mar2010

Apr2010

May2010

Jun2010

Jul2010

Aug2010

Sep2010

Oct2010

Nov2010

Dec2010

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

Rmb/kg

0

1

2

3

4

5

6

7

Feb2010

Mar2010

Apr2010

May2010

Jun2010

Jul2010

Aug2010

Sep2010

Oct2010

Nov2010

Dec2010

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

Rmb/kg

Source: CEIC

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Food & Beverage

Page 24

Number of slaughtered hog Number of pig stock

0

5,000

10,000

15,000

20,000

25,000

30,000

Jan2

010

Feb2

010

Mar2

010

Apr2

010

May2

010

Jun2

010

Jul2

010

Aug2

010

Sep2

010

Oct2

010

Nov2

010

Dec2

010

Jan2

011

Feb2

011

Mar2

011

Apr2

011

May2

011

Jun2

011

Jul2

011

Aug2

011

Sep2

011

Oct2

011

Nov2

011

Dec2

011

Jan2

012

Feb2

012

Mar2

012

'000

410,000

420,000

430,000

440,000

450,000

460,000

470,000

480,000

Jan2010

Feb2010

Mar2010

Apr2010

May2010

Jun2010

Jul2010

Aug2010

Sep2010

Oct2010

Nov2010

Dec2010

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

'000

Number of sow pig stock Pig to feedstuff ratio

43,000

44,000

45,000

46,000

47,000

48,000

49,000

50,000

Jan2010

Feb2010

Mar2010

Apr2010

May2010

Jun2010

Jul2010

Aug2010

Sep2010

Oct2010

Nov2010

Dec2010

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

'000

0

1

2

3

4

5

6

7

8

9

Jan2010

Feb2010

Mar2010

Apr2010

May2010

Jun2010

Jul2010

Aug2010

Sep2010

Oct2010

Nov2010

Dec2010

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

X

Source: CEIC

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Food & Beverage

Page 25

China DDGS Southern Beef

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

Rmb/ton

29.0

30.0

31.0

32.0

33.0

34.0

35.0

36.0

37.0

38.0

39.0

Jan2011

Feb2011

M

ar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

M

ar2012

Apr2012

rmb/kg

Chicken Lamb

15.5

16.0

16.5

17.0

17.5

18.0

18.5

19.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/kg

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/kg

Source: CEIC

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Food & Beverage

Page 26

Piglet price Soybean meal

0

5

10

15

20

25

30

35

40

Jan2010

Feb2010

Mar2010

Apr2010

May2010

Jun2010

Jul2010

Aug2010

Sep2010

Oct2010

Nov2010

Dec2010

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

Rmb/kg

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

US$/ton

Source: CEIC

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Food & Beverage

Page 27

Instant noodle

Production volume

0

100

200

300400

500

600

700

800

900

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

'000 tons

(10.0)

0.0

10.0

20.030.0

40.0

50.0

60.0

70.0

80.0


Yoy growth%

Source: CEIC

Wheat Palm oil

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

RMB/ton

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

4,500.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

US$/ton

Source: CEIC

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Food & Beverage

Page 28

Baijiu (White liqueur)

Production volume Moutai 53 Degrees Retail price

0

200

400600

800

1,000

1,200

1,400

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

'000 tons

0.0

10.0

20.0

30.0

40.0

50.0

60.0


Yoy growth

0.0

300.0

600.0

900.01,200.0

1,500.0

1,800.0

2,100.0

2,400.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/500ml

Source: National Bureau of Statistics of China Source: National Bureau of Statistics of China

Wuliangye 52 Degrees Retail price Guojiao 1573 Retail price

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/500ml

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/500ml

Source: CEIC

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Food & Beverage

Page 29

Edible oil

Production volume Soybean oil price

0500

1,0001,5002,000

2,5003,0003,5004,0004,5005,000

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

'000 tons

0.0

10.0

20.0

30.0

40.0

50.0

60.0


Yoy growth%

10.8

11.0

11.2

11.411.6

11.8

12.0

12.2

12.4

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/litre

Peanut oil price Salad oil price

19.5

20.0

20.5

21.0

21.5

22.0

22.5

23.0

23.5

24.0

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/litre

12.8

13.0

13.2

13.4

13.6

13.8

14.0

14.2

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/litre

Source: CEIC

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Food & Beverage

Page 30

China Crush margin Argentina crude soybean oil FOB

(500.0)

(400.0)

(300.0)

(200.0)

(100.0)

0.0

100.0

200.0

300.0

400.0

500.0

600.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

Rmb/ton

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

1,800.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

US$/ton

Import: Soybean Import: Soybean oil

0

100

200

300

400

500

600

700

800

900

Jan2010

Feb2010

Mar2010

Apr2010

May2010

Jun2010

Jul2010

Aug2010

Sep2010

Oct2010

Nov2010

Dec2010

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

'000 ton

0

50

100

150

200

250

300

Jan2010

Feb2010

Mar2010

Apr2010

May2010

Jun2010

Jul2010

Aug2010

Sep2010

Oct2010

Nov2010

Dec2010

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

'000 ton

Source: CEIC

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Food & Beverage

Page 31

Soybean price Rapeseed price

0.0

100.0

200.0

300.0

400.0

500.0

600.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

US$/ton

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Jan2011

Feb2011

Mar2011

Apr2011

May2011

Jun2011

Jul2011

Aug2011

Sep2011

Oct2011

Nov2011

Dec2011

Jan2012

Feb2012

Mar2012

Apr2012

rmb/lkg

Source: CEIC

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Food & Beverage

Page 32

Confectionary

Production volume Cocoa

0

50

100

150

200

250

300

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

'000 tons

(40.0)

(30.0)(20.0)(10.0)0.010.0

20.030.040.050.060.0


Yoy growth%

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

Oct2007

Dec2007

Feb2008

Apr2008

Jun2008

Aug200

Oct2008

Dec2008

Feb2009

Apr2009

Jun2009

Aug200

Oct2009

Dec2009

Feb2010

Apr2010

Jun2010

Aug201

Oct2010

Dec2010

Feb2011

Apr2011

Jun2011

Aug201

Oct2011

Dec2011

Feb2012

Apr2012

US$/ton

Source: CEIC

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Food & Beverage

Page 33

Flavouring

Production volume

0

100

200

300400

500

600

700

800

900

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

'000 tons

(50.0)(40.0)(30.0)(20.0)(10.0)0.0

10.020.030.040.050.060.0


Yoy growth%

Source: CEIC

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Food & Beverage

Page 34

Ice cream

Production volume

0

50

100

150

200

250

300

350

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

Mar-12

'000 tons

(20.0)

(10.0)

0.0

10.0

20.0

30.0

40.0

50.0


Yoy growth%

Source: CEIC

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Food & Beverage

Page 35

Monitor of F&B climate in China

After a chilling 1Q, April is a warm season, which should benefit beverage and beer sales.

Beijing - Temperature yoy change Beijing - Precipitation yoy change

(15)

(10)

(5)

0

5

10

15

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

Apr-12

Celsius

(20,000)

(15,000)

(10,000)

(5,000)

0

5,00010,000

15,000

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

Apr-12

Macrons

Shanghai - Temperature yoy change Shanghai - Precipitation yoy change

(15)

(10)

(5)

0

5

10

15

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

Apr-12

Celsius

(25,000)

(20,000)(15,000)

(10,000)(5,000)

0

5,00010,000

15,00020,000

25,000

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

Apr-12

Macrons

Source: Bloomberg

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Food & Beverage

Page 36

Guangdong - Temperature yoy change Guangdong - Precipitation yoy change

(20)

(15)

(10)

(5)

0

5

10

15

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-10

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-10

Dec-10

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-11

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-11

Dec-11

Jan-1

2

Feb-1

2

Mar-12

Apr-12

Celsius

(40,000)

(30,000)

(20,000)

(10,000)

0

10,000

20,000

30,000

40,000

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-10

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-10

Dec-10

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-11

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-11

Dec-11

Jan-1

2

Feb-1

2

Mar-12

Apr-12

Macrons

Chengdu - Temperature yoy change Chengdu - Precipitation yoy change

(15)

(10)

(5)

0

5

10

15

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

Apr-12

Celsius

(20,000)

(15,000)

(10,000)

(5,000)

0

5,000

10,000

15,000

20,000

Jan-1

0

Feb-1

0

Mar-10

Apr-10

May-1

0

Jun-1

0

Jul-10

Aug-1

0

Sep-1

0

Oct-10

Nov-1

0

Dec-1

0

Jan-1

1

Feb-1

1

Mar-11

Apr-11

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-1

1

Jan-1

2

Feb-1

2

Mar-12

Apr-12

Macrons

Source: Bloomberg

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Food & Beverage

Page 37

PE & PB Band Charts

P/E band charts - Food & beverage

Ajisen China (538 HK) China Foods (506 HK)

0

5

10

15

20

25

30

Mar-07

Sep-0

7

Mar-08

Sep-0

8

Mar-09

Sep-0

9

Mar-10

Sep-1

0

Mar-11

Sep-1

1

Mar-12

Share Price (HK$)

9x

24x

40x

55x

70x

0

2

4

6

8

10

12

14

16

1999

2001

2003

2005

2007

2009

2011

Share Price (HK$)

2x

14x

26x

38x

50x

China Mengniu (2319 HK) China Yurun (1068 HK)

0

5

10

15

20

2530

35

40

45

50

2004

2005

2006

2007

2008

2009

2010

2011

2012

Share Price (HK$)

9x

15x

21x

27x33x

0

5

10

15

20

25

30

35

40

Oct-05

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Share Price (HK$)

7x

13x

19x

25x

32x

Dynasty Fine Wine (828 HK) Tingyi Holding (322 HK)

0

1

2

3

4

5

6

7

8

Jan-0

5

Jan-0

6

Jan-0

7

Jan-0

8

Jan-0

9

Jan-1

0

Jan-1

1

Jan-1

2

Share Price (HK$)

7x

17x

28x39x

50x

0

5

10

15

20

25

30

2

000

2

002

2

004

2

006

2

008

2

010

2

012

Share Price (HK$)

5x

14x

24x

34x

43x

Source: Bloomberg, DBS Vickers

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Food & Beverage

Page 38

P/E band charts - Food & beverage (continued)

Tsingtao Brewery (168 HK) Want Want China (151 HK)

0

10

20

30

40

50

60

1999

2001

2003

2005

2007

2009

2011

Share Price (HK$)

7x

18x

30x41x53x

2

4

6

8

10

12

14

Mar-0

8

Jul-0

8

Nov-0

8

Mar-0

9

Jul-0

9

Nov-0

9

Mar-1

0

Jul-1

0

Nov-1

0

Mar-1

1

Jul-1

1

Nov-1

1

Mar-1

2

Jul-1

2

Share Price (HK$)

14x

18x

23x

28x

32x


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Page 39

P/B band charts - Food & beverage

Ajisen China (538 HK) China Foods (506 HK)

0

5

10

15

20

25

Mar-07

Sep-0

7

Mar-08

Sep-0

8

Mar-09

Sep-0

9

Mar-10

Sep-1

0

Mar-11

Sep-1

1

Mar-12

Share Price (HK$)

1.2x

2.7x

4.2x

5.7x

7.2x

0

2

4

6

8

10

12

1999

2001

2003

2005

2007

2009

2011

Share Price (HK$)

0.2x

1.2x

2.2x

3.1x

4.1x

China Mengniu (2319 HK) China Yurun (1068 HK)

0

5

10

15

2025

30

35

40

45

50

2004

2005

2006

2007

2008

2009

2010

2011

2012

Share Price (HK$)

1.1x

3.2x

5.4x7.5x9.7x

0

5

10

15

20

25

30

35

40

Oct-05

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11

Share Price (HK$)

0.8x

1.6x

2.5x

3.3x

4.1x

Dynasty Fine Wine (828 HK) Tingyi Holding (322 HK)

0

1

2

3

4

5

6

Jan-0

5

Jan-0

6

Jan-0

7

Jan-0

8

Jan-0

9

Jan-1

0

Jan-1

1

Jan-1

2

Share Price (HK$)

0.6x

1.3x

1.9x

2.6x3.3x

0

5

10

15

20

25

30

2000

2002

2004

2006

2008

2010

2012

Share Price (HK$)

0.6x

2.5x

4.4x

6.3x

8.1x


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Page 40

P/B band charts - Food & beverage (continued)

Tsingtao Brewery (168 HK) Want Want China (151 HK)

0

10

20

30

40

50

60

1999

2001

2003

2005

2007

2009

2011

Share Price (HK$)

0.2x

1.7x

3.2x

4.6x6.1x

2

4

6

8

10

12

14

16

Mar-0

8

Jul-0

8

Nov-0

8

Mar-0

9

Jul-0

9

Nov-0

9

Mar-1

0

Jul-1

0

Nov-1

0

Mar-1

1

Jul-1

1

Nov-1

1

Mar-1

2

Jul-1

2

Share Price (HK$)

4.3x

6.3x

8.3x

10.3x

12.3x


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Page 41

DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows:

(>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)

(>15% total return over the next 12 months for small caps, >10% for large caps)

(-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)

(negative total return i.e. > -10% over the next 12 months)

(negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)

Share price appreciation + dividends

DBS Vickers Research is available on the following electronic platforms: DBS Vickers (www.dbsvresearch.com); Thomson(www.thomson.com/financial); Factset (www.factset.com); Reuters (www.rbr.reuters.com); Capital IQ (www.capitaliq.com) and Bloomberg (DBSRGO). For access, please contact your DBSV salesperson.

This report is prepared by DBS Vickers (Hong Kong) Limited (DBSVHK), a direct wholly-owned subsidiary of DBS Vickers Securities Holdings PteLtd ("DBSVH"). This report is intended for clients of DBSV Group only and no part of this document may be (i) copied, photocopied or duplicatedin any form or by any means or (ii) redistributed without the prior written consent of DBSVR. It is being distributed in the United States by DBSVUS, which accepts responsibility for its contents. Any U.S. person receiving this report who wishes to effect transactions in any securities referredto herein should contact DBS Vickers Securities (USA) Inc (DBSVUSA) directly and not its affiliate.

The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers toDBSVHK and/or DBSVH) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed aresubject to change without notice. This document is prepared for general circulation. Any recommendation contained in this document does nothave regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for theinformation of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separateindependent legal or financial advice. DBSVHK accepts no liability whatsoever for any direct, indirect and/or consequential loss (including anyclaims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to thisdocument. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. DBSVH is a wholly-ownedsubsidiary of DBS Bank Ltd. DBS Bank Ltd along with its affiliates and/or persons associated with any of them may from time to time have interestsin the securities mentioned in this document. DBSVHK, DBS Bank Ltd and their associates, their directors, and/or employees may have positions in,

and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and otherbanking services for these companies.

Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there canbe no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments.The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and itmay not contain all material information concerning the company (or companies) referred to in this report.

The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates andassumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates onwhich the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actualresults. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIEDUPON as a representation and/or warranty by DBSVHK and/or DBSVH (and/or any persons associated with the aforesaid entities), that:

a. such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, andb. there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk

assessments stated therein.

Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies)mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to thecommodity referred to in this report.

DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, does not have its own investment banking or researchdepartment, nor has it participated in any investment banking transaction as a manager or co-manager in the past twelve months. Any US personswishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussedin this document should contact DBSVUSA exclusively.

The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companiesand their securities expressed in this report accurately reflect his/her personal views. The analyst also certifies that no part of his/her compensationwas, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report. As of the date the report is

published, the analyst and his / her spouse and/or relatives and/or associate who are financially dependent on the analyst, do not hold interests inthe securities recommended in this report (interest includes direct or indirect ownership of securities, directorships and trustee positions).

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Food & Beverage

1. DBSVHK and its subsidiaries do not have a proprietary position in the securities recommended in this report as of the date thereport is published.

2. DBSVHK, DBSVUSA, DBS Bank Ltd and/or other affiliates may beneficially own a total of 1% or more of any class of commonequity securities of the subject companies mentioned in this document as of the latest available date of the updatedinformation.

3. Compensation for investment banking services:DBSVHK, DBSVUSA, DBS Bank Ltd and/or other affiliates may have received compensation, within the past 12 months, andwithin the next 3 months may receive or intends to seek compensation for investment banking services from the subjectcompanies mentioned in this document.

DBSVUSA does not have its own investment banking or research department, nor has it participated in any investment bankingtransaction as a manager or co-manager in the past twelve months. Any US persons wishing to obtain further information,including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this documentshould contact DBSVUSA exclusively.

This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or residentof or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or usewould be contrary to law or regulation.

This report is being distributed in Australia by DBSVR and DBSVS, which are exempted from the requirement to holdan Australian financial services licence under the Corporation Act 2001 [CA] in respect of financial services providedto the recipients. DBSVR and DBSVS are regulated by the Monetary Authority of Singapore [MAS] under the lawsof Singapore, which differ from Australian laws. Distribution of this report is intended only for wholesale investorswithin the meaning of the CA..

This report is being distributed in Hong Kong by DBS Vickers (Hong Kong) Limited which is licensed and regulated bythe Hong Kong Securities and Futures Commission.

This report is being distributed in Singapore by DBSVR, which holds a Financial Advisers licence and is regulated bythe MAS. This report may additionally be distributed in Singapore by DBSVS (Company Regn. No. 198600294G),which is an Exempt Financial Adviser as defined under the Financial Advisers Act. Any research report produced by aforeign DBS Vickers entity, analyst or affiliate is distributed in Singapore only to Institutional Investors, ExpertInvestors or Accredited Investors as defined in the Securities and Futures Act, Chap. 289 of Singapore. Anydistribution of research reports published by a foreign-related corporation of DBSVR/DBSVS to Accredited Investorsis provided pursuant to the approval by MAS of research distribution arrangements under Paragraph 11 of the FirstSchedule to the FAA.

This report is being distributed in the UK by DBS Vickers Securities (UK) Ltd, who is an authorised person in themeaning of the Financial Services and Markets Act and is regulated by The Financial Services Authority. Researchdistributed in the UK is intended only for institutional clients.

This report is being distributed in Dubai/United Arab Emirates by DBS Bank Ltd, Dubai (PO Box 506538, 3rd

Floor,Building 3, Gate Precinct, DIFC, Dubai, United Arab Emirates) and is intended only for clients who meet the DFSAregulatory criteria to be a Professional Client. It should not be relied upon by or distributed to Retail Clients. DBSBank Ltd, Dubai is regulated by the Dubai Financial Services Authority.

Neither this report nor any copy hereof may be taken or distributed into the United States or to any U.S. personexcept in compliance with any applicable U.S. laws and regulations.

In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only forqualified, professional, institutional or sophisticated investors as defined in the laws and regulations of such

jurisdictions.

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