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KimEng Hong Kong is a subsidiaryof Malayan Banking Berhad

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Malaysia Company Update 2 December 2011

PP16832/01/2012 (029059)

Genting Plantations “Premium outlet” next door

New shopping experience. Johor Premium Outlet (“JPO”), the first

premium outlet in the ASEAN region, started its pre-launch sales

yesterday, featuring a combination of 69 brands and F&B outlets.

However, we observe certain hiccups that can be overcome over time.

We expect

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Other highlights

1/3 of EPP3 of Tourism NKEA achieved. The Entry Point Project

(“EPP”) 3 under the Tourism National Key Economic Area, proposes to

establish three premium outlets in Malaysia by year 2020 as one the

Economic Transformation Programme’s (ETP) target to rev upMalaysia’s tourism industry. Johor Premium Outlet is one of the three

targeted premium outlet that aims to cater to tourist arrivals into

Iskandar. Meanwhile, shoppers could look forward to two additional

premium outlets planned to be built in Sepang and Penang

respectively. Although they would cater to tourist arrivals in different

places, JPO could see competition ahead.

Ease of access. JPO is easily assessable by car since it is merely 15

minutes drive from Senai Airport, 45 minutes from Johor Bahru, 1 hour

from Singapore downtown and 3 hours from Kuala Lumpur. Dedicated

bus services from various locations (including from Senai Airport) are

also available, catering to JPO’s shoppers. There is abundance ofparking spaces as well. Security systems are also intact with a police

base inside JPO itself to provide a safe shopping experience. The only

bank with a presence in the JPO is Maybank.

Designer Fashions & Sportswear

Adidas, Armani Exchange, Armani Outlet,

Burberry, Canali, CK Calvin Klein, Cotton On,

DKNY, Esprit, Flow, G2000, Gap, Guess,

Lacoste Outlet, La Senza Lingerie, Levi’s Outlet Store,

Nike Factory Outlet, Padini Outlet Store, Pink Jambu, Poney Outlet, Puma,

Quiksilver, Raoul, Rip Curl, Roxy,

Salvatore Ferragamo Company Store, Shanghai Tang,

Timberland, Universal Traveller, Zegna Outlet Store.

Opening soon: Brooks Brothers, Polo Ralph Lauren, Tommy Hilfiger, Versace .

Shoes

Charles & Keith Reductions, Clarks, Geox, Pedro Outlet, Skechers, Vincci.

Accessories & Jewellery

City Chain, Evita Peroni.

Opening soon: Swiss Watch Gallery, Tomei, Wear+When.

Fine Leather & luggage

Bonia, Carlo Rino, Coach, Coach Men’s,

Fossil, Michael Kors, Oroton Factory Outlet,

Samsonite Factory Outlet, Tumi.

Gift & Specialty items

Cosmetics & Designer Fragrances, Fidani Chocolate,

Maybank, Royal Selangor, The Body Shop Outlet.

Opening soon: The Cosmetics Company Store.

Housewares & Home Furnishings

Akemi Uchi.

Food & Beverages

Absolute Thai, Baskin-Robbins, Crispy Crepe, George & Dragon Café,

Kampachi Japanese Restaurant, Taang Shifu

The Coffee Bean & Tea Leaf, Starbucks Coffee.

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Spacious walkways Food court (construction in progress)

Source: Maybank-IB Source: Maybank-IB

Huge parking space Children playground


External landscape Police base and ATM machines


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Burberry Salvatore Ferragamo


Michael Kors Coach


Brooks Brothers (opening soon) Wear + When (opening soon)


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JPO signboard

Source: Maybank IB

JPO’s shops directory

Source: Johor Premium Outlet website

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INCOME STATEMENT (RM m) BALANCE SHEET (RM m)

FYDec 2010A 2011F 2012F 2013F FYDec 2010A 2011F 2012F 2013F

Revenue 988.6 1,082.6 958.1 997.1 Fixed Assets 1,802.9 1,937.4 2,104.9 2,267.8

EBITDA 452.3 603.3 467.8 471.2 Other LT Assets 175.5 178.2 187.9 199.5

Depreciation & Amortisation (32.7) (32.9) (33.2) (33.5) Cash/ST Investments 498.3 617.0 745.3 841.0

Operating Profit (EBIT) 419.7 570.4 434.6 437.7 Other Current Assets 390.9 496.9 472.9 498.5

Interest (Exp)/Inc 15.1 9.8 12.2 14.8 Total Assets 2,867.6 3,229.5 3,511.0 3,806.9

Associates 5.0 5.3 12.3 14.3

One-offs 0.0 8.0 0.0 0.0 ST Debt 2.0 2.0 2.0 2.0

Pre-Tax Profit 439.7 585.5 459.1 466.8 Other Current Liabilities 147.5 153.8 156.5 168.7

Tax (64.0) (143.1) (111.7) (113.1) LT Debt 66.1 66.1 66.1 66.1

Minority Interest (2.3) (2.3) (2.3) (2.3) Other LT Liabilities 36.8 36.8 36.8 36.8

Net Profit 373.5 440.2 345.1 351.3 Minority Interest 67.1 66.4 65.6 64.9

Recurring Net Profit 373.5 432.2 345.1 351.3 Shareholders' Equity 2,548.1 2,904.5 3,183.9 3,468.4

Total Liabilities-Capital 2,867.6 3,229.5 3,511.0 3,806.9

Revenue Growth % 30.8% 9.5% (11.5)% 4.1%

EBITDA Growth (%) 43.9% 33.4% (22.5)% 0.7% Share Capital (m) 757.3 757.9 757.9 757.9

EBIT Growth (%) 45.8% 35.9% (23.8)% 0.7% Gross Debt/(Cash) 68.1 68.1 68.1 68.1

Net Profit Growth (%) 58.5% 17.9% (21.6)% 1.8% Net Debt/(Cash) (430.1) (548.9) (677.2) (772.9)

Recurring Net Profit Growth (%) 58.5% 15.7% (20.1)% 1.8% Working Capital 739.6 958.1 1,059.7 1,168.8

Tax Rate % 14.5% 24.4% 24.3% 24.2%

CASH FLOW (RM m) RATES & RATIOS

FYDec 2010A 2011F 2012F 2013F FYDec 2010A 2011F 2012F 2013F

Profit before taxation 439.7 585.5 459.1 466.8 EBITDA Margin % 45.8% 55.7% 48.8% 47.3%

Depreciation 32.7 32.9 33.2 33.5 Op. Profit Margin % 42.5% 52.7% 45.4% 43.9%

Net interest receipts/(payments) (15.1) (9.8) (12.2) (14.8) Net Profit Margin % 37.8% 40.7% 36.0% 35.2%

Working capital change 0.0 0.0 0.0 0.0 ROE % 14.7% 16.1% 11.3% 10.6%

Cash tax paid (47.8) (143.1) (111.7) (113.1) ROA % 13.0% 14.4% 10.2% 9.6%

Others (incl'd exceptional items) (202.6) (102.4) 17.1 (25.1) Net Margin Ex. El % 37.8% 39.9% 36.0% 35.2%

Cash flow from operations 206.9 363.2 385.5 347.3 Dividend Cover (x) 3.9 5.3 5.3 5.3Capex (204.3) (167.4) (200.7) (196.5) Interest Cover (x) NA NA NA NA

Disposal/(purchase) (6.8) 0.0 0.0 0.0 Asset Turnover (x) 0.3 0.3 0.3 0.3

Others (36.1) 0.0 0.0 0.0 Asset/Debt (x) 42.1 47.4 51.5 55.9

Cash flow from investing (247.2) (167.4) (200.7) (196.5) Debtors Turn (days) 61.6 87.0 88.0 89.0

Debt raised/(repaid) 0.0 0.0 0.0 0.0 Creditors Turn (days) 116.2 140.0 140.0 140.0

Equity raised/(repaid) 2.0 0.0 0.0 0.0 Inventory Turn (days) 122.3 155.0 155.0 155.0

Dividends (paid) (49.7) (83.7) (65.7) (66.8) Net Gearing % NA NA NA NA

Interest payments 56.5 9.8 12.2 14.8 Debt/ EBITDA (x) 0.2 0.1 0.1 0.1

Others (3.1) (3.1) (3.1) (3.1) Debt/ Market Cap (x) 0.0 0.0 0.0 0.0

Cash flow from financing 5.7 (77.0) (56.5) (55.1)

Change in cash (34.5) 118.8 128.3 95.7

Source: Company, MaybankIB

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APPENDIX 1

Definition of Ratings

Maybank Investment Bank Research uses the following rating system:

BUY Total return is expected to be above 10% in the next 12 months

HOLD Total return is expected to be between -5% to 10% in the next 12 months

SELL Total return is expected to be below -5% in the next 12 months

Applicability of Ratings

The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are

only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not

carry investment ratings as we do not actively follow developments in these companies.

Some common terms abbreviated in this report (where they appear):

Adex = Advertising Expenditure FCF = Free Cashflow PE = Price Earnings

BV = Book Value FV = Fair Value PEG = PE Ratio To Growth

CAGR = Compounded Annual Growth Rate FY = Financial Year PER = PE RatioCapex = Capital Expenditure FYE = Financial Year End QoQ = Quarter-On-Quarter

CY = Calendar Year MoM = Month-On-Month ROA = Return On Asset

DCF = Discounted Cashflow NAV = Net Asset Value ROE = Return On EquityDPS = Dividend Per Share NTA = Net Tangible Asset ROSF = Return On Shareholders’ Funds

EBIT = Earnings Before Interest And Tax P = Price WACC = Weighted Average Cost Of Capital

EBITDA = EBIT, Depreciation And Amortisation P.A. = Per Annum YoY = Year-On-Year

EPS = Earnings Per Share PAT = Profit After Tax YTD = Year-To-Date

EV = Enterprise Value PBT = Profit Before Tax

Disclaimer

This report is for information purposes only and under no circumstances is it to be considered or intended as an offer to sell or a solicitation

of an offer to buy the securities referred to herein. Investors should note that income from such securities, if any, may fluctuate and that each

security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamentalratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on

price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.Accordingly, investors may

receive back less than originally invested. Past performance is not necessarily a guide to future performance. This report is not intended to

provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the

particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding

the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.

The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently

verified by Maybank Investment Bank Berhad and consequently no representation is made as to the accuracy or completeness of this report

by Maybank Investment Bank Berhad and it should not be relied upon as such. Accordingly, no liability can be accepted for any direct,

indirect or consequential losses or damages that may arise from the use or reliance of this report. Maybank Investment Bank Berhad, its

affiliates and related companies and their officers, directors, associates, connected parties and/or employees may from time to time have

positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an

underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and

other services for or relating to those companies. Any information, opinions or recommendations contained herein are subject to change at

any time, without prior notice.

This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”,

“believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”,

“should”, “could” or “might” occur or be achieved and other similar expressions. Such forwa rd looking statements are based on assumptions

made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ

materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-

looking statements. Maybank Investment Bank Berhad expressly disclaims any obligation to update or revise any such forward looking

statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated

events.

This report is prepared for the use of Maybank Investment Bank Berhad's clients and may not be reproduced, altered in any way, transmitted

to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of Maybank

Investment Bank Berhad and Maybank Investment Bank Berhad accepts no liability whatsoever for the actions of third parties in this respect.

This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any

locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

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APPENDIX 1

Additional Disclaimer (for purpose of distribution in Singapore)

This report has been produced as of the date hereof and the information herein maybe subject to change. Kim Eng Research Pte Ltd

("KERPL") in Singapore has no obligation to update such information for any recipient. Recipients of this report are to contact KERPL in

Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor,

expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), KERPL shall be legally

liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.

As of 2 December 2011, KERPL does not have an interest in the said company/companies.

Additional Disclaimer (for purpose of distribution in the United States)

This research report prepared by Maybank Investment Bank Berhad is distributed in the United States (“US”) to Major US Institutional

Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Kim Eng Securities USA, a broker-

dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended).

All responsibility for the distribution of this report by Kim Eng Securities USA in the US shall be borne by Kim Eng. All resulting transactions

by a US person or entity should be effected through a registered broker-dealer in the US.

This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not

be eligible for sale in all jurisdictions or to certain categories of investors. This report is not directed at you if Kim Eng Securities is prohibited

or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it

that Kim Eng Securities is permitted to provide research material concerning investments to you under relevant legislation and regulations.

Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may app ly if the reader is

receiving or accessing this report in or from other than Malaysia.

As of 2 December 2011, Maybank Investment Bank Berhad and the covering analyst does not have any interest in in any companies

recommended in this Market themes report.

Analyst Certification:

The views expressed in this research report accurately reflect the analyst's personal views about any and all of the subject securities or

issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations

or views expressed in the report.

Additional Disclaimer (for purpose of distribution in the United Kingdom)This document is being distributed by Kim Eng Securities Limited, which is authorised and regulated by the Financial Services Authority and

is for Informational Purposes only.This document is not intended for distribution to anyone defined as a Retail Client under the Financial

Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does

not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report

should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own

independent tax advisers.

Published / Printed by

Maybank Investment Bank Berhad (15938-H) (A Participating Organisation of Bursa Malaysia Securities Berhad)

33rd Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala LumpurTel: (603) 2059 1888; Fax: (603) 2078 4194Stockbroking Business:

Level 8, Tower C, Dataran Maybank, No.1, Jalan Maarof 59000 Kuala LumpurTel: (603) 2297 8888; Fax: (603) 2282 5136

http://www.maybank-ib.com

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