REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 13 March 2015

▌What’s on the Table…

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QL Resources - A visit to QL Kota Kinabalu

Last week, we visited QL’s marine plant and poultry farm in Kota Kinabalu, Sabah, where the company raises broiler chickens and produces surimi, fishmeal and frozen fish. We found the highly automated plant to be clean and well organised. We raise our FY16-17 EPS forecasts, mainly to factor in a stronger US$ vs. RM, lower raw material costs and new contributions from recent acquisition KSSB. Our target price (based on an unchanged consumer average of 23x CY16 P/E) is raised accordingly. We maintain our Add call. Rerating catalysts include expansion plans and investors’ preference for resilient stocks as consumer spending weakens. QL remains our top sector pick.

Construction - Shock waves to highway jobs?

A press article stated that the Selangor state government is looking to review all federal government-initiated new highway jobs in the state. This is unexpected but not hugely negative for the sector as highway jobs comprise less than 15% of total outstanding works of RM150bn, and account for a minimal share of the tender book of most contractors under our coverage. The biggest loser by our estimates would be Mudajaya. The rest are not heavily exposed to highways that are likely to be at risk. Maintain Overweight. Gamuda, which has zero exposure to highways, remains our top big cap pick. Muhibbah Engineering, which is keen to pursue packages from the awarded and approved WCE, is still our preferred small/mid-cap pick.

Economic Update - BNM 2014 Annual Report – Cruising over the bumps

Bank Negara Malaysia (BNM) holds a cautious view on growth amid the challenging external environment. Still, BNM maintained a positive and steady growth outlook of 4.5-5.5% (CIMB: 5.0%) in 2015, mainly anchored by domestic demand while net export contributions are expected to turn negative. Despite the guarded external outlook and highly volatile capital flows, we concur with BNM’s assessment that Malaysia will be cushioned by a well-diversified economy, favourable labour market conditions, deeper and more matured financial markets, a strong banking system, ample reserves and a flexible currency.

Economic Update - Jan IPI growth slows

Growth of the Industrial Production Index (IPI) moderated to 7.0% yoy in Jan (vs. +7.4% in Dec), below our expectations (+8.4%) and in line with consensus (+7.0%). The moderation was due to slower manufacturing output but supported by stronger mining and electricity production. This month’s IPI growth suggest that GDP growth for 1Q15 remains on steady footing, supported by manufacturing production, especially the E&E sector as well as the implementation of mega infrastructure development projects. Mining output should also continue to grow amid efforts to ramp up production of oil and gas from selected fields.

▌News of the Day…

—————————————————————————————————————————————————————————————————————— • AirAsia X plans to resume flights to Europe early next year

• Yinson secured US$780m financing for FPSO project in Ghana

• Tanjung Offshore is seeking RM270m in damages from seven individuals

• Quill Trust gets shareholders' nod to buy Platinum Sentral from MRCB

• Seacera Group tweaking proposal for the electrified security fence project

• Eurozone industrial production fell 0.1% mom in Jan (+0.3% mom in Dec)

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,650

1,700

1,750

1,800

1,850

1,900

Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15

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FBMKLCI

1786.87 8.71pts 0.49%Mar Futures Apr Futures

1782 - (0.51% ) 1781 - (1.00% )———————————————————————————

Gainers Losers Unchanged542 308 310

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Turnover2955.9m shares / RM2191.371m

3m avg volume traded 1906.74m shares

3m avg value traded RM2017.07m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,787 3,374 5,440 1,544 23,798 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,786.87 0.5 1.5

FBM100 12,008.94 0.5 1.7

FBMSC 16,293.13 0.4 8.4

FBMMES 7,094.59 1.6 25.5

Dow Jones 17,895.22 1.5 0.4

NASDAQ 4,893.29 0.9 3.3

FSSTI 3,373.60 (0.1) 0.3

FTSE-100 6,761.07 0.6 3.0

SENSEX 28,930.41 0.9 5.2

Hang Seng 23,797.96 0.3 0.8

JCI 5,439.83 0.4 4.1

KOSPI 1,970.59 (0.5) 2.9

Nikkei 225 18,991.11 1.4 8.8

PCOMP 7,839.82 0.6 8.4

SET 1,544.34 0.0 3.1

Shanghai 3,349.32 1.8 3.5

Taiwan 9,596.00 0.8 3.1————————————————————————————————

Close % chg Vol. (m)

ETI TECH CORP 0.120 9.1 154.7

GENETEC TECH 0.235 27.0 141.4

WINTONI GROUP 0.395 14.5 119.2

INGENUITY 0.075 0.0 115.1

XINGHE 0.125 (3.8) 111.1

NOVA MSC 0.170 3.0 101.6

NETX HOLDINGS 0.075 7.1 62.0

PRIVASIA 0.295 0.0 54.7————————————————————————————————

Close % chg

US$/Euro 1.0620 (0.14)

RM/US$ (Spot) 3.6870 (0.03)

RM/US$ (12-mth NDF) 3.8057 (0.06)

OPR (% ) 3.20 (0.93)

BR (% , CIMB Bank) 4.00 0.00

GOLD ( US$/oz) 1,154.05 0.03

WTI crude oil US spot (US$/barrel) 47.05 (2.33)

CPO spot price (RM/tonne) 2,233.00 (2.53)

Market Indices

Top Actives

Economic Statistics

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

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Daybreak│Malaysia

March 13, 2015

2

Global Economic News

The US initial jobless claims dropped to a three-week low of 289,000 in the week ended 7 Mar (325,000 in week ended 28 Feb). Continuing claims declined to 2.418m in the week ended 28 Feb (2.423m in week ended 21 Feb), while the unemployment rate among people eligible for benefits held at 1.8%. (Bloomberg)

US retail sales dropped 0.6% mom in Feb (-0.8% mom in Jan), a third consecutive decline. Retail sales excluding autos decreased 0.1% mom in Feb (-1.1% mom in Jan) while sales excluding automobiles and service stations decreased 0.2% mom in Feb (-0.1% mom in Jan). (Bloomberg)

US import prices gained 0.4% mom in Feb (-3.1% mom in Jan). On year, import prices fell 9.4% yoy in Feb (-8.7% yoy in Jan). (Reuters)

The budget deficit in the US narrowed to US$192.3bn in Feb 2015 (US$193.5bn deficit in Feb 2014).

The federal budget deficit is projected to total US$486bn in fiscal year 2015, the Congressional Budget Office (CBO) estimated. That’s 2.7% of GDP, down from 2.8% in FY2014 and 9.8% in FY2009. (Bloomberg)

Eurozone industrial production fell 0.1% mom in Jan (+0.3% mom in Dec), but rose 1.2% yoy (+0.6% yoy in Dec). (WSJ, Bloomberg)

Business investment in Japan is expected to fall in the fiscal year starting Apr, according to a Ministry of Finance (MoF) survey. Business investment is projected to fall 3.9% yoy in the next fiscal year compared with an expected increase of 5.1% yoy for the current fiscal year, the survey showed. (WSJ)

Japan’s tertiary activity index was up a seasonally adjusted 1.4% mom in Jan (flat in Dec). (RTT)

China could free up interest rates on bank deposits as soon as this year, People's Bank of China (PBoC) Gov. Zhou Xiaochuan said

He also stressed that the central bank will remain cautious about coming to the aid of a slowing economy.

He added that the US Federal Reserve's expected move to raise interest rates "won't pose a big threat" to China, as he sought to dispel concerns over a potential surge in capital fleeing China. (WSJ)

Chinese banks issued Rmb1.02tr (US$163bn) of new yuan loans in Feb (Rmb1.47tr in Jan). Total social financing came to Rmb1.35tr in Feb (Rmb2.05tr in Jan). Broad money supply, M2, was up 12.5% yoy at the end of Feb (+10.8% yoy at the end of Jan). (WSJ)

India’s retail inflation rose 5.37% yoy Feb (+5.19% yoy in Jan). (India Times)

India’s industrial production grew 2.6% yoy in Jan (+1.7% yoy in Dec). (India Times, Bloomberg)

Daybreak│Malaysia

March 13, 2015

3

Australia’s unemployment rate fell to a seasonally adjusted 6.3% in Feb (6.4% in Jan). The number of people employed rose by 15,600 in Feb (-14,600 in Jan). Full-time employment rose by 10,300 in Feb (-30,900 in Jan), while those in part-time work increased by 5,300 (+16,300 in Jan). Participation rate fell to 64.6% in Feb (64.7% in Jan). (WSJ, Bloomberg)

The Bank of Korea (BOK) lowered its seven-day repurchase rate from 2.00% to an all-time low of 1.75%.

The BOK said domestic demand has fallen “substantially” and policy shifts in major countries pose risks for South Korea.

BOK Governor Lee Ju Yeol said the central bank “decided to act preemptively” amid weaker-than expected economic data. “The 2.00% rate wasn’t constraining economic activity and the 25 bp cut will support recovery,” he said.

He added that it takes about two quarters for rate cuts to affect spending, and said that he couldn’t tell if there was room for a further cut. (Bloomberg)

Taiwan’s central bank Governor Perng Fai-nan said the island doesn’t have to follow US monetary policy, sparking speculation interest-rate increases will be kept on hold. The central bank has held its benchmark rate at 1.875% since Jun 2011, a period in which inflation averaged 1.2%. (Bloomberg)

The Indonesian government will impose a 10% value-added tax (VAT) on toll road fares, effective 1 Apr.

The plan is provisioned in the Directorate Generals Regulation No. PER-10/PJ/2015 on the procedures of VAT collection on toll road services.

Based on the regulation, toll road operators are also obliged to report about their businesses if they have to be registered as tax payers. They would then be required to collect, transfer, and report about the payable tax. (Antara News)

Philippines unemployment rate came in at 6.6% in Jan (7.5% in Jan 2014 and 6.0% in Dec 2014). (GMA)

Philippines budget deficit narrowed to Php73.1bn in 2014 (Php164.1bn deficit in 2013 and Php314bn deficit in 2010), well below the Php266.2bn target by the government. (Philippines Star)

Malaysian Economic News

Industrial Production Index (IPI) grew 7.0% in Jan 2015 compared with the same month a year ago. "The increase was due to the positive growth in all indices of manufacturing (6.5%), mining (8.3%) and electricity (6.3%)," the Statistics Department said. (Bernama)

For further details, kindly refer to our Economic Update

Daybreak│Malaysia

March 13, 2015

4

The economy will remain resilient this year, said Bank Negara Malaysia (BNM) Deputy Governor Dr Sukudhew Singh, but cautioned that it needs to watch out for the challenges. Managing the risks related to possible destabilising global financial development was the top challenge facing the Malaysian economy, he said.

Sukudhew said the other prevailing challenges were weak oil and commodity prices, addressing fiscal concerns, further enhancing export competitiveness and export growth, attracting more high quality investment and increasing higher income employment opportunities. "There are a lot of risks out there that we need to be watching out for.

"Given that we can't do anything with what is going to happen outside the country, and we also can't withdraw from the global economy and the financial system, what we should do is to ensure our fundamentals, through the fiscal policy, remain strong," he said. (Bernama)

The Finance Ministry issued a statement stressing that the federal government debt position remained manageable with Malaysia categorised as a country with moderate indebtedness.

“At the end of 2014, total federal government debt domestic and offshore, amounted to RM582.8bn or 54.5% of the gross domestic product (GDP). Of these, 97.1% or RM566.1bn is domestic debt, while the remaining RM16.8bn or 2.9% is offshore debt.

According to the statement, Malaysia's external debt position is calculated based on a new definition, encompassing offshore borrowings by the federal government, public enterprises and the private sector; and holdings of debt securities, deposits and loans denominated trading by non-residents (foreign holders).

The redefinition was in accordance with standard conventions of the International Monetary Fund. It said at the end of 2014, total external debt stood at RM744.7bn or 69.6% of GDP. In 2013, external debt recorded was RM696.6bn or 70.6% of GDP. It said although the total external debt increased moderately by 6.9%, it was lower as a percentage of GDP than in 2013. (Malaysian Insider)

The intra-Asean trade which has been on an increasing trend over the years is expected to surpass the global average by 2% to 3% this year, said Minister of International Trade and Industry Datuk Seri Mustapa Mohamed. "Over the years we have seen a gradual increase in intra-Asean trade and investment. We had started with about 10% intra-Asean trade 20 years ago, and now it is about 24% to 25%, which is a big jump in terms of the intra-Asean trade," he said. (Sun)

Malaysia’s ultra rich who have a net worth of at least US$30m (RM110m) are increasingly moving their investments, and their families, out of the country, according to the latest report by property firm Knight Frank. In its 2015 Wealth Report on the habits of ultra-high net worth individuals (UHNWIs), the London-based consultancy noted that while the wealth of the world’s richest grew by 3.1% last year, those in oil-producing Malaysia only enjoyed a 2.7% rise.

Nicholas Holt, Knight Frank’s head of research for Asia-Pacific, attributed the drop in the wealth of Malaysians as largely due to the weakened value of the ringgit and the falling prices of oil worldwide. (Malay Mail)

Daybreak│Malaysia

March 13, 2015

5

The United States of America aims an 8% increase in the number of Malaysians travelling to the country annually, following its first participation in the consumer travel show the Malaysian Association of Tour and Travel Agents (MATTA) Fair. Edgard D. Kagan, US Embassy Acting Ambassador in Malaysia, said nearly 82,000 Malaysians visited the US in 2014, up 7.5% over 2013.

Brand USA, established by the Travel Promotion Act passed by Congress and signed into law by President Barack Obama in March 2010, is collaborating with the US Embassy's commercial and consular sections to launch the 'Visit USA Malaysia Programme'. (Bernama)

Political News

Low Taek Jho, chief executive officer of Jynwel Capital, a Hong Kong investment advisory company, has denied all allegations of money laundering and fraud against him, claiming they are politically motivated, in a saga that analysts say could erupt into potentially Malaysia's biggest financial scandal since the 1990s.

"I feel I'm a victim of the cross-fire of Malaysian politics, which is getting more polarised. I'm a target," Low said from his office in Hong Kong.

"Business decisions by 1MDB are ultimately decided and approved in accordance to their corporate governance framework, which is the management, board and shareholder. So why politicise and try to blame it all on me when I have no decision-making authority?" he said.

"If the Malaysian authorities ask me to assist with their investigations, I'm happy to cooperate. I've nothing to hide. I believe in the rule of law. As of today, I'm not under investigation. I've never done anything illegal," Low said. (SCMP)

DAP remains unhappy after finally having a look at PAS' proposed amendments to the Kelantan Syariah Criminal Code yesterday. It has asked the three state executive councillors who presented it to "come back with different amendments".

DAP National Legal Bureau chairperson Gobind Singh Deo (left) said DAP considered the changes to be "way above amendments" and was "substantially a new bill." "We have asked them to go back and return with a new set of amendments and we will take it from there," he said.

PAS plans to table the proposed amendments at the Kelantan state assembly on Mar 18, as part of its larger plan to implement hudud in the state, which will later include a private member's bill on hudud in Parliament. The Kelantan PAS government finally presented its proposed amendments during a Pakatan leadership meeting in Parliament yesterday.

PKR president Dr Wan Azizah Wan Ismail said that the meeting was a "very good one" and "was very well discussed." "We made our views known," she said. She refused to comment on whether Pakatan had managed to agree on a resolution on the hudud issue, which continues to be a thorn in the the coalition. (Malaysiakini)

Daybreak│Malaysia

March 13, 2015

6

A PAS leader today rebutted party conservatives' stand that the PAS president cannot be challenged. Central committee member Khalid Abdul Samad stated that the president or any top party leaders can be replaced if they do not perform.

"If performance is unsatisfactory, then the PAS central committee, including the president, can and should be changed through the electoral process in the muktamar," he said.

PAS' conservatives, primarily consisting of the ulama (religious scholars) group, have insisted on following the party's tradition. They said the PAS president has never been challenged since the party adopted ulama leadership in 1982. The group has also insisted that the president can only be an ulama.

However, Khalid begged to differ, stating that this criterion is only necessary for membership of the syura council which interprets Islamic law. Instead, he said the focus of central committee, including the president, is on the party's management and therefore, its members must be equipped with various skills. Most important, he said, is the capacity to lead the party into the general election. (Malaysiakini)

Corporate News

AirAsia Bhd group chief executive Tan Sri Tony Fernandes said AirAsia X Bhd, the long-haul arm of Asia's biggest budget airline, plans to resume flights to Europe early next year using new, fuel-efficient jets to tap into the growing demand from travellers. (Financial Daily)

CIMB Group announced several key leadership appointments, including the appointment of Tigor M. Siahaan as president director of CIMB Niaga. Effendy Shahul Hamid will assume the role of CEO for group asset management & investments, while Kwan Keen Yew has been appointed as group Chief Compliance Officer. "They all bring different perspectives to the table and to CIMB Group's refreshed leadership team and organisation structure.

These announcements are key as we execute our T18 plans and continue to build our ASEAN business," said CIMB group CEO Tengku Zafrul Tengku Abdul Aziz. (Sun)

The Selangor water deadlock will end up in the courts if both the federal and state governments are unable to come to an agreement over the latest impasse. For now, Minister of Energy, Green Technology and Water Datuk Seri Maximus Ongkili wants to convince the state to extend the deadline of the Master Agreement even though it lapsed on Monday. “It can be activated even tomorrow; it is up to them to extend the timeline,’’ he told The Star.

He is scheduled to meet his officers involved in the water restructuring project today to explain issues surrounding the impasse. He hopes his officers will then clarify the matter with their counterparts from the state by the end of this week or early next week.

“There is some misconception and we believe (Selangor Mentri Besar) Azmin Ali was ill advised on the 45-year land lease issue. “The land will go back to the state after the lease period ends, not to the Federal Government. “Once all these issues are clarified, we should be able to conclude everything in a month,’’ Ongkili said. (Starbiz)

Daybreak│Malaysia

March 13, 2015

7

Quill Capital Trust (QCT), received shareholders' nod for the acquisition of Platinum Sentral from Malaysia Resources Corp Bhd (MRCB) for RM740m, aims to double its total assets value to RM3.2bn within the next one to two years. With the Platinum Sentral acquisition, QCT's assets value will surge from RM868m to RM1.6bn, making it the 8th largest listed real estate investment trust (REIT). (Sun)

Officers of the Retirement Fund Incorporated (KWAP) may face a suit for negligently investing in a subsidiary of the beleaguered 1Malaysia Development Berhad (1MDB). PKR secretary-general and Pandan MP Rafizi Ramli says that that KWAP had loaned RM4bn to SRC International Sdn Bhd, a subsidiary of 1MDB that has been taken over by the Ministry of Finance.

He said that he could not get any clear answers as to why the loan was made to a company whose principal was facing serious problems in repaying its debts or servicing its loans. The subsidiary was later absorbed as a fully-owned entity of the finance ministry and its RM4bn liability removed from 1MDB's books. (The Rakyat Times)

The Ministry of Finance, which owns 100% of 1Malaysia Development Bhd (1MDB), has provided the latter with a standby credit facility. 1MDB president and group executive director Arul Kanda said on Thursday the facility, of up to RM950m, was provided as a loan on commercial terms. (StarBiz)

Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said that 1MDB’s gearing ratio, which is a measure of debt against capital, was 17x and unsustainable at its present form. This is why 1MDB has embarked on an exercise to rationalise and consolidate its assets,” he said in reply to a question from Mohd Fasiah Mohd Fakeh (BN-Sabak Bernam) in Parliament yesterday. In an effort to consolidate its assets, Ahmad Husni said that 1MDB was in negotiations to transfer a power plant project that would cost RM8bn to construct. “1MDB is in negotiations to transfer the project,” he said.

In March last year, 1MDB was awarded a project to build a 2,000MW power plant in Port Dickson, fending off a close challenge from a joint venture of YTL Power International Bhd and SIPP Energy Sdn Bhd. The power plant was supposed to be the anchor for 1MDB to list its energy unit that was scheduled to take place in the first quarter of this year. (StarBiz)

1MDB is in the process of undertaking an IPO to inject capital flow into the sovereign fund to overcome its cash flow problems. Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said this short-term measure would be launched in June or July.

"The IPO is important. It is needed to restructure borrowing," he said. Ahmad Husni said this in reply to a supplementary question by Mohd Fasiah Mohd Fakeh (BN-Sabak Bernam) on the financial position of 1MDB at Dewan Rakyat. Replying to the original question by Mohd Fasiah on the performance of 1MDB, Husni said, the fund has launched two initiatives -- consolidation of the business and rationalisation to improve business potentials.

He said the consolidation initiative involved putting the energy business under subsidiary, Edra Global Energy, which has big potentials. "The returns in terms of gross revenue is about RM3.8bn and net profit of RM1.3bn," he said.

Ahmad Husni said for property development in the long run, the focus was on Tun Razak Exchange which has a GDV of RM40bn and Bandar Malaysia (RM150bn).

Daybreak│Malaysia

March 13, 2015

8

Petronas has priced a US$5bn multi-tranche bond, with the proceeds being used by the firm or subsidiaries and associated companies for corporate purposes. The transaction comprised a US$1.25bn 5-year Sukuk tranche, US$750m 7-year tranche, US$1.5bn 10-year and US$1.5bn 30-year conventional notes.

This is the first offering from Petronas since its US$4.5bn dual-tranche in August 2009 and the largest G3 issuance from Southeast Asia. Bank of America Merrill Lynch, CIMB Investment Bank, Citigroup, J.P Morgan and Morgan Stanley acted as the active joint bookrunners and lead managers. (Bernama)

Oil and gas (O&G) services provider Yinson Holdings Bhd has secured a term loan facility of up to US$780m (RM2.87bn) for its floating production, storage and offloading vessel (FPSO) project in Ghana, Africa. The facility is to part-finance the conversion and refurbishment of an FPSO vessel pursuant to the contract that was awarded by Eni Ghana Exploration Production Ltd on Jan 27.

According to the company, the charter contract, which will last for 15 years with five-yearly extension options, was for the processing of O&G from the Offshore Cape Three Points block, located in the Tano Basin, about 60km off the coast of Ghana. (StarBiz)

Tanjung Offshore is seeking RM270m in damages from seven individuals who are in the process of convening a shareholders’ meeting to remove three of the company’s directors. The company and the three independent directors - George William Warren Jr, Datuk Ab Wahab Ibrahim and Shahrizal Hisham Abdul Halim - have commenced civil action in the High Court of Malaya against the defendants (the seven individuals) for defamation. The defendants named in the case are Tan Sri Tan Kean Soon, Datuk Nik Norzrul Thani N Hassan Thani, Datin Norhafizah Mohd Nordin, Datuk Rosman Hassan, Datuk Norazman Hamidun, Datuk Maheran Mohd Salleh and Tan Sam Eng.

Tanjung said in a statement that its three co-plaintiffs were members of an independent committee formed by the board in January to conduct an internal review, following several speculative articles that had been published in the media in 2014. “Kean Soon was present at the board meeting, and approved the committee’s formation and objectives. The committee’s findings resulted in the suspension from their executive roles of Kean Soon and two other company officials,” it said. (StarBiz)

Proton Holdings Bhd is expected to announce collaborations to build cars in Bangladesh and Saudi Arabia as part of its strategy to find new market overseas. Proton is understood to have entered into an agreement with PHP Group of Industries for sole distributorship of Proton cars in Bangladesh. Sources said the agreement will lead to the assembly of semi-knocked down Proton models in Chittagong within the year. (Malaysian Reserve)

CCM Duopharma Biotech Bhd (CCMD) is set to become one of Malaysia's largest pharmaceutical manufacturers following its purchase of six pharmaceutical units from parent company, Chemical Company of Malaysia Bhd (CCM) for RM245.1m. The deal will see CCMD taking over CCM Pharmaceuticals Sdn Bhd, CCM Pharma Sdn Bhd, Innovax Sdn Bhd, Upha Pharmaceutical Manufacturing (M) Sdn Bhd, CCM International (Philippines) Inc and CCM Pharmaceuticals (S) Pte Ltd. "The acquisition will give us greater manufacturing capacity and flexibility to cater to the growing demand for generic medicines, thus allowing us to bid for larger contracts," said CCMD CEO Leonard Ariff Abdul Shatar. (Bernama)

Daybreak│Malaysia

March 13, 2015

9

Seacera Group Bhd is tweaking its proposal for the country’s first electrified security fence project to incorporate features that would make it withstand massive floods. Group managing director Zulkarnin Ariffin said the company, which had first sent in the proposal for the security fence in June last year, was adjusting it following the recent floods in Kelantan. Seacera was one of the early movers of the security fence project.

Last year, it had suggested erecting an electrified fence measuring more than 500km across the Malaysian-Thai border. Kelantan is one of the states that borders Thailand. It is learnt that Seacera’s proposal had reached the Home Ministry, which has been looking to beef up security and help minimise smuggling activities across the borders. Apart from Seacera, there are at least four other companies that have submitted proposals.

It is learnt that the ministry would review the proposals from as early as next month. Seacera, which is involved in the ceramic tiles and other building materials, construction and property segments, surprised the market last June when the low profile bumiputra company announced that it had, together with another little-known firm, Intelligent Fence (M) Sdn Bhd, submitted a proposal for such a mega job. A search with the Registrar of Companies shows that the main shareholder of Intelligent Fence is 35-year-old Chandrasegaran Uthamasselan. (StarBiz)

Daybreak│Malaysia

March 13, 2015

10

BMSB: Changes in shareholdings

Type of No of Ave Price

12-Mar-15 Date transaction securities Company (RM)

EPF 6/3-9/3 Disposed 4,426,700 MALAYAN BANKING

EPF 30/1-6/2 Disposed 3,459,600 PETRONAS CHEMICALS

EPF 5/3-6/3 Disposed 2,877,600 AXIATA GROUP

EPF 9/3 Disposed 1,062,400 PUBLIC BANK

EPF 9/3 Disposed 906,400 POS MALAYSIA

EPF 6/3 Disposed 629,500 UMW HOLDINGS

EPF 6/3 Disposed 593,800 MISC

EPF 9/3 Disposed 396,800 PETRONAS GAS

EPF 9/3 Disposed 327,700 KPJ HEALTHCARE

EPF 9/3 Disposed 264,400 GENTING PLANTATIONS

EPF 6/3-9/3 Disposed 40,000 AEON CO. (M)

EPF 9/3 Disposed 16,100 WAH SEONG CORPORATION

Kumpulan Wang Persaraan 6/3 Disposed 504,300 IJM CORPORATION

Kumpulan Wang Persaraan 6/3 Disposed 261,000 UZMA

Kumpulan Wang Persaraan 6/3 Disposed 199,000 BIMB HOLDINGS

MM Asset Management Holding LLC 9/3 Disposed 62,900 GENTING BERHAD

WELLINGTON MANAGEMENT CO, LLP 4/3-9/3 Disposed 873,140 AIRASIA

Aberdeen Asset Management PLC 9/3-10/3 Disposed 1,537,300 POS MALAYSIA

Aberdeen Asset Management PLC 9/3-10/3 Disposed 92,600 GUINNESS ANCHOR

Aberdeen Asset Management PLC 9/3-10/3 Disposed 9,800 TASEK CORPORATION

Mitsubishi UFJ Financial Group, Inc 5/3 Disposed 14,100 GUINNESS ANCHOR

EPF 9/3 Acquired 12,000,000 SAPURAKENCANA

EPF 5/3-9/3 Acquired 10,319,500 TENAGA NASIONAL

EPF 6/3 Acquired 5,577,900 CIMB GROUP

EPF 9/3 Acquired 4,303,100 DIGI.COM

EPF 9/3 Acquired 4,000,000 TELEKOM MALAYSIA

EPF 9/3 Acquired 3,000,000 IOI PROPERTIES GROUP

EPF 9/3 Acquired 2,404,900 DIALOG GROUP

EPF 9/3 Acquired 2,269,300 AMMB HOLDINGS

EPF 9/3 Acquired 1,992,800 IOI CORPORATION

EPF 9/3 Acquired 1,770,500 AFG

EPF 9/3 Acquired 1,130,000 YTL CORPORATION

EPF 9/3 Acquired 1,042,500 MAH SING GROUP

EPF 9/3 Acquired 500,000 TOP GLOVE

EPF 9/3 Acquired 487,800 HONG LEONG BANK

EPF 9/3 Acquired 470,800 GAMUDA

EPF 9/3 Acquired 400,000 IHH HEALTHCARE

EPF 9/3 Acquired 350,500 INARI AMERTRON

EPF 9/3 Acquired 333,800 MAXIS

EPF 9/3 Acquired 59,800 LAFARGE MALAYSIA

EPF 9/3 Acquired 52,000 FRASER & NEAVE

EPF 9/3 Acquired 23,700 MALAYSIA AIRPORTS

EPF 9/3 Acquired 4,500 IJM CORPORATION

Skim Amanah Saham Bumiputera 5/3-6/3 Acquired 5,003,900 AXIATA GROUP

Kumpulan Wang Persaraan 6/3 Acquired 643,600 TDM BERHAD

Kumpulan Wang Persaraan 6/3 Acquired 405,000 PRESTARIANG

Kumpulan Wang Persaraan 6/3 Acquired 58,500 PETRONAS GAS

Vertical Capacity Sdn Bhd 9/3-11/3 Acquired 8,305,800 IOI PROPERTIES GROUP

FFHL Group Ltd 5/3-11/3 Acquired 1,300,000 MUDAJAYA GROUP

Upaya Rajang Sdn. Bhd. 11/3 Acquired 3,500 TA ANN 3.92

Aberdeen Asset Management PLC 6/3-10/3 Acquired 378,800 AEON CO. (M)

Mitsubishi UFJ Financial Group, Inc 6/3 Acquired 200,000 AEON CO. (M)

Mitsubishi UFJ Financial Group, Inc 6/3 Acquired 89,066 CIMB GROUP

Mitsubishi UFJ Financial Group, Inc 6/3 Acquired 38,500 BAT

Mitsubishi UFJ Financial Group, Inc 6/3 Acquired 36,100 POS MALAYSIA

DAIBOCHI PLASTIC 12/3 Shares Buy Back 70,900 DAIBOCHI PLASTIC 4.30 SOURCES: BMSB

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BMSB: ESOS & others

13-Mar-15 No Of New Shares Date of Listing Nature of transaction

SUNWAY BERHAD 620,600 13-Mar-15 Exercise of Warrants-16

SUNWAY BERHAD 606,555 13-Mar-15 Exercise of ESOS SOURCES: BMSB

BMSB: Off-market transactions

12-Mar-15 Vol

TEOSENG 8,000,000

K1 3,000,000

MUIPROP 1,702,600

IMASPRO 1,113,000

PESONA-WC 892,000

PESONA 740,000 Notes:CN-Crossing deal on board lots, MN-Married deal on board lots, MO-Married deal on odd lots

SOURCES: BMSB

BMSB: Dividends

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

Date

Payment

Date7-ELEVEN MALAYSIA Final + Special - single tier 2.5 + 2.6 27-Feb-15 13-Mar-15 17-Mar-15 31-Mar-15

KPJ HEALTHCARE  Interim dividend - single tier 2.60 27-Feb-15 25-Mar-15 27-Mar-15 10-Apr-15

GUINNESS ANCHOR Interim dividend - single tier 20.00 5-Feb-15 27-Mar-15 31-Mar-15 22-Apr-15

STAR PUBLICATIONS Second interim + Special - single tier 6.0 + 3.0 27-Feb-15 27-Mar-15 31-Mar-15 17-Apr-15

BURSA MALAYSIA Final dividend - single tier 18.00 3-Mar-15 1-Apr-15 3-Apr-15 16-Apr-15

BERJAYA FOOD Second interim dividend - single tier 1.25 10-Mar-15 8-Apr-15 10-Apr-15 23-Apr-15

MY E.G. SERVICES First interim dividend - single tier 0.50 27-Feb-15 22-Apr-15 24-Apr-15 21-May-15

CARLSBERG Final + Special - single tier 66.00 27-Feb-15 30-Apr-15 5-May-15 20-May-15

NESTLE (MALAYSIA) Final dividend - single tier 175.00 23-Feb-15 11-May-15 13-May-15 27-May-15

BINTULU PORT Final + Special - single tier 6.0 + 3.0 17-Feb-15 13-May-15 15-May-15 29-May-15

TASEK CORPORATION Final + Special - single tier 30.0 + 50.0 17-Feb-15 13-May-15 15-May-15 29-May-15

GAS MALAYSIA Final + Special - single tier 4.06 12-Mar-15 20-May-15 22-May-15 12-Jun-15

SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

13-Mar-15 Ann Date Proposed

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

MAH SING GROUP 20-Nov-14 Bonus issue 1:4

AIRASIA X 30-Nov-14 Rights issue of RM0.15 with free detachable warrants

KAREX 26-Feb-15 Private placement of up to 40.5m new shares, Bonus issue 1:2

SOURCES: BMSB

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Corporate Actions

March 2015

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7

Star analyst briefing BNM OPR Exports, Imports Trade Balance, Foreign Reserves

8 9 10 11 12 13 14

Berjaya Auto 3Q Berjaya Food 3Q SP Setia 1Q IPI, Manufacturing Sales

15 16 17 18 19 20 21

CPI Eco World 1Q Foreign Reserves (mid-month data)

22 23 24 25 26 27 28

Chempaka state seat by-election

29 30 31

Astro 4Q & conf. call Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

April 2015

SUN MON TUE WED THU FRI SAT

1 2 3 4

Exports, Imports, Trade Balance

5 6 7 8 9 10 11

Foreign Reserves IPI, Manufacturing Sales

12 13 14 15 16 17 18

19 20 21 22 23 24 25

CPI, Foreign Reserves (mid-month data)

26 27 28 29 30

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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DISCLAIMER #05

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15

guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Neither CIMB nor any of its affiliates nor its related persons shall be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.

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CIMB Securities (Thailand) Co., Ltd. may act or acts as Market Maker and issuer including offering of Derivative Warrants Underlying securities of the following securities. Investors should carefully read and study the details of the derivative warrants in the prospectus before making investment decisions.

AAV, ADVANC, AMATA, ANAN, AOT, AP, ASP, BANPU, BAY, BBL, BCH, BCP, BEC, BECL, BGH, BH, BIGC, BJC, BJCHI, BLA, BLAND, BMCL, BTS, CENTEL, CK, CPALL, CPF, CPN, DCC, DELTA, DEMCO, DTAC, EARTH, EGCO, ERW, ESSO, GFPT, GLOBAL, GLOW, GUNKUL, HEMRAJ, HMPRO, INTUCH, IRPC, ITD, IVL, JAS, KBANK, KCE, KKP, KTB, KTC, LH, LOXLEY, LPN, M, MAJOR, MC, MCOT, MEGA, MINT, NOK, NYT, PS, PSL, PTT, PTTEP, PTTGC, QH, RATCH, ROBINS, RS, SAMART, SCB, SCC, SCCC, SIRI, SPALI, SPCG, SRICHA, STA, STEC, STPI, SVI, TASCO, TCAP, TFD, THAI, THCOM, THRE, THREL, TICON, TISCO, TMB, TOP, TPIPL, TTA, TTCL, TTW, TUF, UMI, UV, VGI, TRUE, WHA.

Corporate Governance Report:

The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information.

The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CIMBS does not confirm nor certify the accuracy of such survey result.

Score Range: 90 - 100 80 - 89 70 - 79 Below 70 or No Survey Result

Description: Excellent Very Good Good N/A

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United Kingdom and Europe: In the United Kingdom and European Economic Area, this report is being disseminated by CIMB Securities (UK) Limited (“CIMB UK”). CIMB UK is authorised and regulated by the Financial Conduct Authority and its registered office is at 27 Knightsbridge, London, SW1X 7YB. This report is for distribution only to, and is solely directed at, selected persons on the basis that those persons: (a) are persons that are eligible counterparties and professional clients of CIMB UK; (b) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”); (c) are persons falling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Order; (d) are outside the United Kingdom; or (e) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with any investments to which this report relates may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This report is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this report relates is available only to relevant persons and will be engaged in only with relevant persons.

Only where this report is labelled as non-independent, it does not provide an impartial or objective assessment of the subject matter and does not constitute independent "investment research" under the applicable rules of the Financial Conduct Authority in the UK. Consequently, any such non-independent report will not have been prepared in accordance with legal requirements designed to promote the independence of investment research and will not subject to any prohibition on dealing ahead of the dissemination of investment research.

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Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (Thai IOD) in 2014.

AAV – Very Good, ADVANC – Very Good, AEONTS – not available, AMATA - Good, ANAN – Very Good, AOT – Very Good, AP - Good, ASK – Very Good, ASP – Very Good, BANPU – Very Good , BAY – Very Good , BBL – Very Good, BCH – not available, BCP - Excellent, BEAUTY – Good, BEC - Good, BECL – Very Good, BGH - not available, BH - Good, BIGC - Very Good, BJC – Good, BLA – Very Good, BMCL - Very Good, BTS - Excellent, CCET – Good, CENTEL – Very Good, CHG – not available, CK – Very Good, CPALL – not available, CPF – Very Good, CPN - Excellent, DELTA - Very Good, DEMCO – Good, DTAC – Very Good, EA - Good, ECL – not available, EGCO - Excellent, GFPT - Very Good, GLOBAL - Good, GLOW - Good, GRAMMY - Excellent, HANA - Excellent, HEMRAJ – Very Good, HMPRO - Very Good, ICHI - not available, INTUCH - Excellent, ITD – Good, IVL - Excellent, JAS – not available, JUBILE – not available, KAMART – not available, KBANK - Excellent, KCE - Very Good, KGI – Good, KKP – Excellent, KTB - Excellent, KTC – Good, LH - Very Good, LPN – Very Good, M - not available, MAJOR - Good, MAKRO – Good, MBKET – Good, MC – Very Good, MCOT – Very Good, MEGA – Good, MINT - Excellent, OFM – Very Good, OISHI – Good, PS – Very Good, PSL - Excellent, PTT - Excellent, PTTEP - Excellent, PTTGC - Excellent, QH – Very Good, RATCH – Very Good, ROBINS – Very Good, RS – Very Good, SAMART - Excellent, SAPPE - not available, SAT – Excellent, SAWAD – not available, SC – Excellent, SCB - Excellent, SCBLIF – Good, SCC – Very Good, SCCC - Good, SIM - Excellent, SIRI - Good, SPALI - Excellent, STA – Very Good, STEC - Good, SVI – Very Good, TASCO – Good, TCAP – Very Good, THAI – Very Good, THANI – Very Good, THCOM – Very Good, THRE – not available, THREL – Good, TICON – Good, TISCO - Excellent, TK – Very Good, TMB - Excellent, TOP - Excellent, TRUE – Very Good, TTW – Very Good, TUF - Good, VGI – Very Good, WORK – not available.

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CIMB Recommendation Framework

Stock Ratings Definition:

Add The stock’s total return is expected to exceed 10% over the next 12 months.

Hold The stock’s total return is expected to be between 0% and positive 10% over the next 12 months.

Reduce The stock’s total return is expected to fall below 0% or more over the next 12 months.

The total expected return of a stock is defined as the sum of the: (i) percentage difference between the target price and the current price and (ii) the forward net dividend yields of the stock. Stock price targets have an investment horizon of 12 months.

Sector Ratings Definition:

Overweight An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation.

Neutral A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation.

Underweight An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation.

Country Ratings Definition:

Overweight An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark.

Neutral A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark.

Underweight An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark.

*Prior to December 2013 CIMB recommendation framework for stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand, Jakarta Stock Exchange, Australian Securities Exchange, Taiwan Stock Exchange and National Stock Exchange of India/Bombay Stock Exchange were based on a stock’s total return relative to the relevant benchmarks total return. Outperform: expected to exceed by 5% or more over the next 12 months. Neutral: expected to be within +/-5% over the next 12 months. Underperform: expected to be below by 5% or more over the next 12 months. Trading Buy: expected to exceed by 3% or more over the next 3 months. Trading Sell: expected to be below by 3% or more over the next 3 months. For stocks listed on Korea Exchange, Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Outperform: Expected positive total returns of 10% or more over the next 12 months. Neutral: Expected total returns of between -10% and +10% over the next 12 months. Underperform: Expected negative total returns of 10% or more over the next 12 months. Trading Buy: Expected positive total returns of 10% or more over the next 3 months. Trading Sell: Expected negative total returns of 10% or more over the next 3 months.