26 October 2016

Affin Hwang Investment Bank Bhd (14389-U)

Page 1 of 6

Today’s Highlights Results Note – Nestle (HOLD, maintain) - Steady sailing Results Note – IGB REIT (BUY, maintain) - Key drivers remain steady Results Note – Globetronics (HOLD, maintain) - 3Q16 earnings improve Outside Malaysia US stocks decline amid mixed blue-chip forecasts US consumer confidence retreated more than forecast in October Home prices in 20 US cities continue rising at steady pace German economy is set to pick up as business confidence improves Hammond sees no reason to refuse future BOE requests for more QE New Zealand dethrones Singapore as easiest place to do business Indonesia must signal tax amnesty won’t be repeated, OECD says Oil falls one-week low as Russian comments add to accord doubts

B ursa M alaysiaKLCI 52-wk range 1862.80 - 1532.14

M kt Cap (RM bn) 1,708.11

Vol (m shrs) 1,425.75

Value (RM m) 1,841.06

KLCI futures (spot) 1,676.00

KLCI futures (1-mth) 1,675.50

KLC I Ind ex ( 12 - mt h)

To p 5 Gainers

Price ( R M ) chg ( R M ) % chgBIPORT 6.76 0.38 6.0

UM S 2.85 0.20 7.5

M AYBANK 7.90 0.17 2.2

LPI 16.96 0.16 1.0

TECGUAN 2.03 0.11 5.7

To p 5 Losers

Price ( R M ) chg ( R M ) % chgBAT 49.24 (1.00) (1.99)

DLADY 59.70 (0.48) (0.80)

GTRONIC 3.56 (0.32) (8.25)

UTDPLT 27.70 (0.30) (1.07)

M AXIS 6.00 (0.20) (3.23)

To p 5 V alue Traded

Price ( R M ) chg ( R M ) V al ( R M m)TENAGA 14.36 0.02 208.33

PBBANK 19.78 (0.04) 106.11

SIM E 8.05 0.03 96.24

M AYBANK 7.90 0.17 92.69

TM 6.52 (0.06) 88.08

Key Eq uit y Ind ices

C lose % chg Y t d chg ( %)KLCI 1677.4 (0.0) (0.9)

Dow Jones 18169.3 (0.3) 4.3

Nasdaq 5283.4 (0.5) 5.5

FTSE100 7017.6 0.4 12.4

East. Europe 2668.2 (0.2) (6.3)

M exico 48093.5 (0.7) 11.9

Shenzen B 2077.7 0.4 (10.0)

Shanghai B 3131.9 0.1 (11.5)

Hong Kong 23565.1 (0.2) 7.5

Korea 2037.2 (0.5) 3.9

Singapore 2854.1 (0.1) (1.0)

Indonesia 5397.8 (0.4) 17.5

Philippines 7580.2 (0.4) 9.0

Thailand 1506.5 0.4 17.0

Vietnam 676.2 (0.3) 16.8

India 28091.4 (0.3) 7.6

Taiwan 9385.7 0.7 12.6

1550

1650

1750

Oct‐15

Jan‐16

Apr‐16

Jul‐16

Oct‐16

Other Markets Key Indicators

Latest chg (%) Latest Ytd chg (%)CPO (RM/Tonne) RM/US$ 4.16 3.3 Spot (Jan) 2,760.0 (2.2) RM per 100 Yen 3.99 (10.5) 3-mth futures (Mar) 2,760.0 (2.2) RM/S$ 2.99 1.7

Yen/US$ 104.16 15.4Brent Crude Oil (US$/brl) Eur/US$ 0.92 (0.3) Spot 50.0 (1.1) RM/AUD 3.18 (1.2) 1-mth futures 50.6 (1.1)

Latest Ytd chg (bps)Gold (US$/oz) OPR (%) 3.00 (25.0) Spot 1271.9 0.8 3-mth Klibor (%) 3.40 (44.0) 1-mth futures 1272.2 0.8 Maybank BR (%) 3.00 -

*as at 1 July 2016

COMMODITIES CURRENCIES

MALAYSIA INTEREST RATES

26 October 2016

Affin Hwang Investment Bank Bhd (14389-U)

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Outside Malaysia US stocks decline amid mixed blue-chip forecasts US stocks declined from a two-week high as mixed forecasts from industry giants and a slump in consumer confidence spurred concern over the outlook for the world’s largest economy. The S&P 500 Index fell 0.4% to 2,143.16. the Dow slipped 53.76 points (0.3%) to 18,169.27. US consumer confidence retreated more than forecast in October Consumer confidence declined more than forecast in October as households became less upbeat about the economy and labor market, figures from the Conference Board showed. Confidence index decreased to a three-month low of 98.6 from a revised 103.5. The median forecast in a Bloomberg survey was for a reading of 101.5. Home prices in 20 US cities continue rising at steady pace Home prices in 20 major US cities continued to rise at a steady pace in August, according to data from S&P CoreLogic Case-Shiller. 20-city property values index increased 5.1% yoy in August after climbing 5% yoy in July. The median forecast in a Bloomberg survey was 5%. German economy is set to pick up as business confidence improves German business sentiment rose to the highest level in more than two years in October, signaling renewed growth momentum in Europe’s largest economy. The Ifo institute’s business climate index climbed to 110.5 from 109.5 in September. That’s the highest level since April 2014 and compares with a median estimate in a Bloomberg survey of 109.6. Hammond sees no reason to refuse future BOE requests for more QE Chancellor of the Exchequer Philip Hammond put paid to speculation the government would seek to interfere in monetary policy by telling lawmakers he saw no reason why he’d refuse a request by the Bank of England for further quantitative easing. While he said he couldn’t pre-judge the decision, he noted stimulative monetary policy has been “highly effective in supporting the economy.” New Zealand dethrones Singapore as easiest place to do business New Zealand has overtaken Singapore as the best country in the the world to do business, according to the World Bank. Singapore slipped to second in the bank’s 2017 “Doing Business” report after topping the ranking for a decade. “A growing body of literature shows that government action to create a sound, predictable regulatory environment is central to whether or not economies perform well and whether that performance is sustainable in the long run,” World Bank Chief Economist Paul Romer said in the report. Indonesia must signal tax amnesty won’t be repeated, OECD says Indonesia’s government must make it clear to errant taxpayers that an amnesty program, which has revealed almost US$300bn in undeclared assets, is the last chance to fix their affairs before full penalties are applied, the OECD said. The government must signal that the Automatic Exchange of Information regime “will be used to locate undeclared assets and that full penalties will apply,” the group said. Oil falls one-week low as Russian comments add to accord doubts Crude fell to a one-week low as speculation mounts that Russia won’t join OPEC to curb supply and analysts predict US stockpiles climbed. Brent for December settlement fell US$0.67 to US$50.79 a barrel. Source: Bloomberg (Lim Yee Ping; 03-2146 7540; yeeping.lim@affinhwang.com)

26 October 2016

Affin Hwang Investment Bank Bhd (14389-U)

Page 3 of 6

Market Summary Table 1: Off Market transactionsShares Price (RM) Vol (m) Val (RMm) Type*DBE MK 0.04 5.20 0.21 D

VCB MK 0.72 4.30 3.10 D

ENGT MK 1.24 2.00 2.48 D

VSI MK 1.42 1.12 1.59 D

Source: Bloomberg

Table 2: Shares Buyback/ ResaleCompany* Date Units Treasury TransactionSUNWAY 25-Oct 43,800 28,477,500 Share Buyback

* Only FBM100 Component Stocks

Source : Bursa Malaysia

Table 3: ESOSCompany* Date Units Transaction

- - - -

* Only FBM100 Component Stocks

Table 4: EntitlementsCompany Entitlement Ex-Date Lodgement Payment- - - - -

Source : Bursa Malaysia

26 October 2016

Affin Hwang Investment Bank Bhd (14389-U)

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Fig 5: Shareholding change Substantial Shareholder Date Transaction Units CompanyEPF 20-Oct-16 Disposed 3,127,300 ARMADAEPF 20-Oct-16 Disposed 1,613,200 CMMTEPF 20-Oct-16 Acquired 341,600 DIALOGKumpulan Wang Persaraan 17-Oct-16 Acquired 44,400 DIALOGEPF 20-Oct-16 Disposed 5,000,000 DIALOGEPF 20-Oct-16 Disposed 2,007,600 DIGIAmanah Raya Trustees 17 to 20-Oct-16 Disposed 16,100 DLADYKumpulan Wang Persaraan 17 to 18-Oct-16 Acquired 1,056,000 FGVKumpulan Wang Persaraan 17-Oct-16 Disposed 800,000 FGVLembaga Tabung Haji 20-Oct-16 Disposed 906,000 FGVKumpulan Wang Persaraan 18-Oct-16 Disposed 55,800 GAMUDAEPF 20-Oct-16 Acquired 584,400 GENPEPF 20-Oct-16 Disposed 496,500 HLBANKKumpulan Wang Persaraan 17 to 18-Oct-16 Acquired 346,200 IGBREITEPF 20-Oct-16 Acquired 1,475,900 IGBREITKumpulan Wang Persaraan 17 to 18-Oct-16 Disposed 2,065,500 IGBREITEPF 18-Oct-16 Disposed 500,000 IGBREITEPF 20-Oct-16 Acquired 1,722,900 IHHEPF 20-Oct-16 Disposed 74,600 IHHEPF 20-Oct-16 Acquired 295,000 IJMEPF 20-Oct-16 Disposed 120,100 IJMEPF 20-Oct-16 Acquired 443,300 IJMPLNTEPF 20-Oct-16 Acquired 686,600 INARIEPF 20-Oct-16 Disposed 1,019,900 INARIKumpulan Wang Persaraan 17-Oct-16 Disposed 1,000,000 INARIEPF 20-Oct-16 Acquired 833,700 IOICORPEPF 20-Oct-16 Acquired 1,796,400 KLKKumpulan Wang Persaraan 17 to 18-Oct-16 Disposed 1,209,000 MAHSINGKumpulan Wang Persaraan 18-Oct-16 Acquired 4,000,000 MALAKOFKumpulan Wang Persaraan 17-Oct-16 Disposed 3,085,300 MALAKOFEPF 19 to 20-Oct-16 Acquired 1,655,100 MAXISEPF 18-Oct-16 Acquired 128,000 NESTLEEPF 18 to 19-Oct016 Disposed 182,300 NESTLEEPF 18 to 19-Oct-16 Acquired 34,400 PANAMYEPF 20-Oct-16 Acquired 3,252,000 PBBANKEPF 20-Oct-16 Acquired 826,600 PCHEMEPF 20-Oct-16 Disposed 2,000,000 PCHEMEPF 20-Oct-16 Disposed 500,000 PETGASKumpulan Wang Persaraan 17 to 18-Oct-16 Acquired 115,200 POSEPF 20-Oct-16 Acquired 698,200 POSKumpulan Wang Persaraan 17 to 18-Oct-16 Disposed 1,039,500 POSEPF 20-Oct-16 Acquired 68,300 PPBEPF 20-Oct-16 Acquired 310,600 SIMEEPF 20-Oct-16 Disposed 2,069,100 SIMEEPF 20-Oct-16 Acquired 900,000 SKPETROEPF 20-Oct-16 Disposed 3,000,000 SKPETROKumpulan Wang Persaraan 18-Oct-16 Acquired 250,000 SPSETIAEPF 20-Oct-16 Acquired 1,587,400 SPSETIAEPF 20-Oct-16 Disposed 500,000 SPSETIAEPF 20-Oct-16 Acquired 647,800 SUNWAYEPF 20-Oct-16 Acquired 4,899,400 TENAGAAmanah Raya Trustees 19 to 20-Oct-16 Disposed 12,572,700 TENAGAEPF 20-Oct-16 Disposed 1,284,100 TENAGAEPF 20-Oct-16 Disposed 2,302,500 TMEPF 20-Oct-16 Disposed 956,400 TOPGLOVEPF 20-Oct-16 Acquired 716,800 YINSONEPF 20-Oct-16 Acquired 1,872,800 YTLEPF 20-Oct-16 Disposed 286,300 YTLEPF 20-Oct-16 Disposed 2,000,000 YTLPOWR

Source: Bursa Malaysia

26 October 2016

Affin Hwang Investment Bank Bhd (14389-U)

Page 5 of 6

Fig 6: Dividend Entitlement Stocks Particulars DPS (sen) Announce Ex-Date Lodge PaymentKEINHIN First and Final Dividend 1.50 25-Aug-16 27-Oct-16 31-Oct-16 21-Nov-16KMLOONG Interim Dividend 7.00 29-Sep-16 27-Oct-16 31-Oct-16 21-Nov-16YTL Interim Dividend 9.50 25-Aug-16 27-Oct-16 31-Oct-16 15-Nov-16YTLPOWR Interim Dividend 1.00 25-Aug-16 27-Oct-16 31-Oct-16 15-Nov-16CCM Interim Dividend 2.50 26-Aug-16 28-Oct-16 1-Nov-16 18-Nov-16EMETALL Interim Dividend 2.50 20-Sep-16 28-Oct-16 1-Nov-16 25-Nov-16FREIGHT Second Interim Dividend 3.50 24-Aug-16 28-Oct-16 1-Nov-16 22-Nov-16CSCENIC First Interim Dividend 6.00 17-Aug-16 31-Oct-16 2-Nov-16 16-Nov-16HLBANK Final Dividend 0.26 30-Sep-16 31-Oct-16 2-Nov-16 17-Nov-16ENGKAH Interim Dividend 1.00 14-Oct-16 1-Nov-16 3-Nov-16 18-Nov-16HLCAP Final Dividend 0.12 4-Oct-16 1-Nov-16 3-Nov-16 18-Nov-16SUIWAH First and Final Dividend 3.50 29-Sep-16 1-Nov-16 3-Nov-16 17-Nov-16ZHULIAN Interim Dividend 1.50 13-Oct-16 1-Nov-16 3-Nov-16 25-Nov-16OKA Final Dividend 3.50 28-Jul-16 2-Nov-16 4-Nov-16 18-Nov-16BCMALL First Interim Dividend 0.40 19-Oct-16 3-Nov-16 7-Nov-16 21-Nov-16YINSON Special Dividend 14.60 24-Oct-16 3-Nov-16 7-Nov-16 21-Nov-16IBRACO First Interim Dividend 3.50 24-Oct-16 7-Nov-16 9-Nov-16 18-Nov-16GADANG First and Final Dividend 7.00 28-Sep-16 8-Nov-16 10-Nov-16 25-Nov-16HAIO Final Dividend 11.00 29-Aug-16 9-Nov-16 11-Nov-16 23-Nov-16SPRITZER First and Final Dividend 5.50 29-Sep-16 9-Nov-16 11-Nov-16 25-Nov-16BAT Interim Dividend 55.00 24-Oct-16 10-Nov-16 14-Nov-16 24-Nov-16NESTLE Second Interim Dividend 70.00 25-Oct-16 11-Nov-16 15-Nov-16 2-Dec-16PLENITU Final Dividend 0.05 4-Oct-16 11-Nov-16 15-Nov-16 25-Nov-16ATTA Special Dividend 5.00 5-Oct-16 14-Nov-16 16-Nov-16 15-Dec-16ATTA Second Interim Dividend 2.00 5-Oct-16 14-Nov-16 16-Nov-16 15-Dec-16GUOCO Final Dividend 2.00 25-Oct-16 22-Nov-16 24-Nov-16 8-Dec-16POHUAT Interim Dividend 2.00 27-Sep-16 22-Nov-16 24-Nov-16 15-Dec-16BONIA Final Dividend 1.25 5-Oct-16 28-Nov-16 30-Nov-16 15-Dec-16GLOMAC Final Dividend 2.00 25-Aug-16 28-Nov-16 30-Nov-16 8-Dec-16MAXIS Interim Dividend 5.00 19-Oct-16 28-Nov-16 30-Nov-16 29-Dec-16DIGI Interim Dividend 5.60 19-Oct-16 29-Nov-16 1-Dec-16 30-Dec-16PANTECH Second Interim Dividend 0.50 18-Oct-16 29-Nov-16 1-Dec-16 27-Dec-16DIALOG Final Dividend 1.20 24-Oct-16 30-Nov-16 2-Dec-16 20-Dec-16FIBON Final Dividend 1.25 29-Sep-16 6-Dec-16 8-Dec-16 29-Dec-16DAIMAN First and Final Dividend 5.00 24-Aug-16 7-Dec-16 9-Dec-16 30-Dec-16PECCA Final Dividend 2.00 11-Oct-16 7-Dec-16 9-Dec-16 27-Dec-16APOLLO First and Final Dividend 30.00 28-Jun-16 8-Dec-16 13-Dec-16 9-Jan-17LATITUD First and Final Dividend 12.00 28-Sep-16 13-Dec-16 15-Dec-16 13-Jan-17PENSONI Final Dividend 2.00 27-Sep-16 13-Dec-16 15-Dec-16 30-Dec-16SIGN Final Dividend 2.00 21-Oct-16 14-Dec-16 16-Dec-16 9-Jan-17YOCB Final Dividend 2.00 24-Oct-16 20-Dec-16 22-Dec-16 18-Jan-17PTARAS Final Dividend 12.00 22-Sep-16 23-Dec-16 28-Dec-16 12-Jan-17SCIENTX Final Dividend 10.00 27-Sep-16 28-Dec-16 30-Dec-16 31-Jan-17IMASPRO First and Final Dividend 3.50 24-Oct-16 30-Dec-16 4-Jan-17 17-Jan-17KESM Final Dividend 3.00 25-Oct-16 6-Jan-17 10-Jan-17 26-Jan-17BENALEC Final Dividend 0.70 7-Oct-16 18-Jan-17 20-Jan-17 10-Feb-17

Source: Bursa Malaysia

26 October 2016

Affin Hwang Investment Bank Bhd (14389-U)

Page 6 of 6

EEqquuiittyy RRaattiinngg SSttrruuccttuurree aanndd DDeeffiinniittiioonnss

BUY Total return is expected to exceed +10% over a 12-month period

HOLD Total return is expected to be between -5% and +10% over a 12-month period

SSEELLLL Total return is expected to be below -5% over a 12-month period

NOT RATED Affin Hwang Investment Bank Berhad does not provide research coverage or rating for this company. Report is intended as information only and not as a recommendation

The total expected return is defined as the percentage upside/downside to our target price plus the net dividend yield over the next 12 months.

OVERWEIGHT Industry, as defined by the analyst’s coverage universe, is expected to outperform the KLCI benchmark over the next 12 months

NEUTRAL Industry, as defined by the analyst’s coverage universe, is expected to perform inline with the KLCI benchmark over the next 12 months

UNDERWEIGHT Industry, as defined by the analyst’s coverage universe is expected to under-perform the KLCI benchmark over the next 12 months

This report is intended for information purposes only and has been prepared by Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) (“the Company”) based on sources believed to be reliable. However, such sources have not been independently verified by the Company, and as such the Company does not give any guarantee, representation or warranty (express or implied) as to the adequacy, accuracy, reliability or completeness of the information and/or opinion provided or rendered in this report. Facts, information, views and/or opinion presented in this report have not been reviewed by, may not reflect information known to, and may present a differing view expressed by other business units within the Company, including investment banking personnel. Reports issued by the Company, are prepared in accordance with the Company’s policies for managing conflicts of interest arising as a result of publication and distribution of investment research reports. Under no circumstances shall the Company, its associates and/or any person related to it be liable in any manner whatsoever for any consequences (including but are not limited to any direct, indirect or consequential losses, loss of profit and damages) arising from the use of or reliance on the information and/or opinion provided or rendered in this report. Any opinions or estimates in this report are that of the Company, as of this date and subject to change without prior notice. Under no circumstances shall this report be construed as an offer to sell or a solicitation of an offer to buy any securities. The Company and/or any of its directors and/or employees may have an interest in the securities mentioned therein. The Company may also make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. Comments and recommendations stated here rely on the individual opinions of the ones providing these comments and recommendations. These opinions may not fit to your financial status, risk and return preferences and hence an independent evaluation is essential. Investors are advised to independently evaluate particular investments and strategies and to seek independent financial, legal and other advice on the information and/or opinion contained in this report before investing or participating in any of the securities or investment strategies or transactions discussed in this report. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. The Company’s research, or any portion thereof may not be reprinted, sold or redistributed without the consent of the Company. The Company, is a participant of the Capital Market Development Fund-Bursa Research Scheme, and will receive compensation for the participation. This report is printed and published by: Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) A Participating Organisation of Bursa Malaysia Securities Bhd Chulan Tower Branch, 3rd Floor, Chulan Tower, No 3, Jalan Conlay, 50450 Kuala Lumpur. www.affinhwang.com Email : research@affinhwang.com Tel : + 603 2143 8668 Fax : + 603 2145 3005