June 02, 2014

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SEE PAGE 17 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS PP16832/01/2013 (031128)

MY Strategy NEUTRAL (unchanged)

1Q report card: Relatively neutral 1Q14 core net profit of our research universe expanded 3.4%

YoY; 65% of the results were in line.

Our 2014/2015 KLCI core earnings estimates are shaved by

0.7%/1.1%; we now expect slightly slower 7.0%/8.0% growth.

Do not expect much of a re-rating; no change to our YE KLCI

target of 1,940.

What’s New

1Q14 core net profit of our research universe expanded 3.4% YoY

but was softer QoQ, at -3.2% (seasonal). Most of our stock coverage

reported results that were within our expectations (65%). Except

for the auto, telco and transport (in particular airlines) sectors

where their results disappointed, the other sectors were largely in

line. Power was the only sector that positively surprised.

Sectors that reported both YoY and QoQ growth in core earnings

were plantation and consumer. Sectors that saw both YoY and QoQ

weaker core earnings were transport (airlines), oil & gas, property

(developers), auto, media and the glove producers.

Among the big caps, stocks whose earnings surprised on the upside

were Malaysia Airports, KL Kepong, HLFG, YTLP and TNB. Stocks

that negatively surprised were Malaysian Airlines, AirAsia X, Bumi

Armada, Guinness, Felda Global, Axiata, Telekom and Dialog.

We observe that results disappointment at the airlines came from a

still challenging environment while dismal at the auto sector came

partly from lower volume sales and margins compression on higher

A&Ps as competition heats up. Pockets of disappointment at the

consumer related sector came from weaker consumer sentiment

(volume sales were down) and poorer adex sentiment (media).

Our 2014/2015 KLCI core earnings estimates are shaved by 0.7%/

1.1%, and we now expect slightly slower 7.0%/8.0% growth vs

8.1%/8.0% previously. The revised core earnings growth of our

research universe is now 7.9%/10.4% vs 12.3%/9.5% previously.

What’s Our View

There is no change to our 1,940 end-2014 KLCI target which implies

16.0x 12M forward earnings. At its 1,873 close on 30 May, the KLCI

trades at 16.7x/15.5x PERs for 2014/2015 and 16.1x on 12M

forward PER, +0.7SD of its long-term mean. The KLCI has neither

re-rated nor de-rated much in the last 5M, trading within the

15.8x-16.3x 12M forward PER range (2013: 15.3-16.6x). PEG is

about 2x now, above that of its regional peers.

There is no change to our sector weights; we remain OVERWEIGHT

on construction, oil & gas, power and gloves. We also remain

selective on stocks, with no major changes in our stock picks.

Analyst

Wong Chew Hann

(603) 2297 8686

wchewh@maybank-ib.com

Current KLCI: 1,873 (30 May)

YE KLCI target: 1,940 (unchanged)

M’sia equities growth & valuation

2013A 2014E 2015E

KLCI @ 1,873 PE (x) 18.0 16.7 15.5

Earnings Growth (%) 5.4% 7.0% 8.0%

Research Universe

PE (x) 18.7 17.4 15.7

Earnings Growth (%) 6.8% 7.9% 10.4%

Our sector weights

OW Auto, Construction, Oil & Gas, Power,

Gloves

N Aviation, Banking, Building materials, Consumer, Gaming, Media, Non-banking

finance, Plantation, Property, Petrochem, Telco, Ports

UW -

Our top BUY picks

Stock Name BB Ticker Shr Px @

30 May

TP

Tenaga TNB 12.06 14.00

Genting Malaysia GENM 4.07 4.74

Hong Leong Bank HLBK 13.88 16.20

AMMB Holdings AMM 7.34 8.50

Bumi Armada BAB 3.52 4.55

IJM Corp IJM 6.69 7.20

MPHB Capital MPHB 2.05 2.42

Source: Maybank KE

June 02, 2014 2

Strategy

1Q14 results roundup

Core earnings up 3.4% YoY

1Q14 core net profit of our research universe expanded 3.4% YoY but was

softer on a QoQ comparison, at -3.2%. The QoQ weakness is seasonal; we

observed that in 1Q11, 1Q12 and 1Q13. The recent quarter saw more of

our stock coverage reporting results that were within our expectations

(65%) compared to the previous quarters (average 56% in line, in 1Q13-

4Q13). Except for the auto, telco and transport (in particular airlines)

sectors where their results disappointed, the other sectors were largely in

line. Power was the only sector that positively surprised in earnings

delivery.

Quarterly recurring net profit of research universe, 1Q 2009 - 1Q 2014

Source: Maybank KE

Sector earnings analysis

Sectors that reported both YoY and QoQ growth in 1Q14 core earnings

were plantation and consumer.

Sectors that saw both YoY and QoQ weaker core earnings were

transport (essentially the airlines), oil & gas, property (developers),

auto, media and the glove producers.

Sectors that reported YoY core earnings growth but QoQ core earnings

contraction were banking, power, telco, construction and building

materials.

4000

6000

8000

10000

12000

14000

16000

18000

CY

1Q

09

CY

2Q

09

CY

3Q

09

CY

4Q09

CY

1Q

10

CY

2Q

10

CY

3Q

10

CY

4Q

10

CY

1Q

11

CY

2Q

11

CY

3Q

11

CY

4Q

11

CY

1Q

12

CY

2Q

12

CY

3Q

12

CY

4Q

12

CY

1Q

13

CY

2Q

13

CY

3Q

13

CY

4Q

13

CY

1Q

14

MYR m

1Q14: +3.4% YoY, -3.2% QoQ

June 02, 2014 3

Strategy

Quarterly recurring net profit of research universe, 3Q 2011 - 1Q 2014

CY

3Q11

CY

4Q11

CY

1Q12

CY

2Q12

CY

3Q12

CY

4Q12

CY

1Q13

CY

2Q13

CY

3Q13

CY

4Q13

CY

1Q14

QoQ

(%)

YoY

(%)

Financials (1) 4,674 4,808 5,167 5,142 5,429 5,370 5,144 5,454 5,949 5,748 5,691 (1.0%) 10.6%

Plantations 2,571 2,463 1,823 2,131 2,094 1,729 1,636 1,562 1,450 1,645 1,795 9.1% 9.7%

Energy utils (2) 1,053 533 556 1,463 1,141 1,265 1,102 1,704 1,057 1,550 1,395 (10.0%) 26.5%

Telcos 1,689 1,910 1,835 1,750 1,712 1,580 1,670 1,919 2,116 1,997 1,698 (15.0%) 1.6%

Transport (3) 275 167 (210) 319 485 1,259 323 291 994 377 211 (44.1%) (34.8%)

Construction 273 317 194 277 284 332 213 277 307 312 277 (11.4%) 29.9%

Building Mats 107 119 49 68 110 95 62 91 120 136 102 (24.9%) 64.4%

Oil & gas 601 529 643 675 645 620 701 1,286 706 727 661 (9.1%) (5.7%)

Property & REIT 370 497 447 507 515 709 694 636 684 739 681 (7.7%) (1.8%)

Consumer 842 660 803 761 786 767 908 871 881 891 927 4.1% 2.2%

Autos 250 107 273 337 339 282 347 341 315 324 277 (14.5%) (20.2%)

Gaming 1,093 961 921 1,152 1,073 1,137 917 985 953 910 911 0.1% (0.7%)

Media 142 183 101 146 133 153 97 131 147 153 82 (46.4%) (15.4%)

Manufacturing (5) 104 106 126 131 143 148 146 137 147 147 128 (13.1%) (12.5%)

Petrochems 1,203 790 1,019 855 742 1,046 1,105 958 635 450 749 66.4% (32.2%)

Total 15,248 14,150 13,746 15,713 15,631 16,492 15,064 16,643 16,461 16,105 15,583 (3.2%) 3.4%

Total-MAS, TNB 14,653 14,186 13,804 14,732 14,727 15,472 14,524 15,414 15,428 15,147 14,930 (1.4%) 2.8%

QoQ Chg (%) 9.1% (7.2%) (2.9%) 14.3% (0.5%) 5.5% (8.7%) 10.5% (1.1%) (2.2%) (3.2%)

YoY Chg (%) 21.5% 0.3% 0.8% 12.4% 2.5% 16.6% 9.6% 5.9% 5.3% (2.4%) 3.4%

Note: (1) Comprises the banks, Bursa Malaysia and MPHB Capital; (2) Comprises Tenaga, YTL Power; (3) Comprises MAS, AirAsia, AirAsia X, MAHB, MISC, NCB; (5) Comprises the glove producers

Source: Maybank KE

Largely in line

The results of 65% of our stock coverage were within our expectation,

which is an improvement over the previous quarters (average 56% in line,

in 1Q13-4Q13). The ratio of below-to-above expectation earnings however

saw an uptick again to 1.8x from 1.1x in 4Q13, but this was due to fewer

stocks that surprised on the upside, rather than more stocks that surprised

on the downside. In fact, the total number of stocks where their earnings

disappointed was down to 20 in 1Q14, compared to 22 in 4Q13.

Sectors with clear misses were auto (MBM, Tan Chong), telco

(Telekom, Axiata, TIME dotCom), and transport (AirAsia X, MAS, NCB).

Sectors where their results were largely in line were banking,

construction, consumer, gaming, glove producers, media, gaming, oil

& gas, petrochemicals, and property (developers and REITs).

Sectors where their results were mixed were:

building materials (Lafarge was in line, but Ann Joo positively

surprised), and

plantation (KL Kepong, TSH and Ta Ann surprised on the upside; TH

Plantation and Felda Global surprised on the downside; Genting

Plantations, IOI, Sime Darby and Sarawak Oil Palms were in line).

Power (coming from TNB and YTLP) was the only sector with earnings

that were above our expectations – this is a positive development as

the preceding quarters saw no sectors that surprised in earnings

delivery.

June 02, 2014 4

Strategy

Within expectations (% of coverage) Below/Above expectations ratio

Source: Maybank KE Source: Maybank KE

Above expectations (% of coverage) Below expectations (% of coverage)

Source: Maybank KE Source: Maybank KE

Sectors’ out/under performance (vs. Maybank KE’s expectations)

CY

1Q12

CY

2Q12

CY

3Q12

CY

4Q12

CY

1Q13

CY

2Q13

CY

3Q13

CY

4Q13

CY

1Q14

Auto In line In line Below Mixed Mixed In line In line In line Below

Banking In line Above Above In line In line Mixed Mixed In line In line

Building materials In line Below Below Mixed Below In line Below Mixed Mixed

Construction / infra In line In line Mixed In line Mixed Mixed Below Mixed In line

Consumer Mixed In line Mixed In line In line In line Below In line In line

Gaming Below In line Mixed In line Mixed Mixed Mixed Mixed In line

Gloves In line In line In line In line In line In line In line In line In line

Media Below In line Below In line In line In line Above In line In line

Oil & Gas Mixed In line Mixed In line In line In line In line In line In line

Petrochemicals In line Below Below In line Above In line Below Below In line

Plantation Below Below Below In line Above Below Below Mixed Mixed

Power In line In line In line Mixed Mixed In line Mixed Mixed Above

Property (ex-REITs) In line In line Mixed Mixed In line In line In line In line In line

REITs In line In line In line In line In line In line In line In line In line

Telecommunications In line In line Mixed Below In line In line Mixed Mixed Below

Transport (shipping, aviation) In line Mixed Mixed Mixed Mixed Below Below Below Mixed

Source: Maybank KE

0.85 1.14

0.87 0.83

1.45

1.00

1.79

1.27

1.82

3.00

3.50

1.15 1.29

2.08

1.63

1.10

1.82

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

xBelow/Above ratio

17

22 2124

14

24

16 17

12

8

1114

18

13

1921

12

0

5

10

15

20

25

30

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

% Above

15

25

18 20 2124

29

21 22 23

39

16

2426

31

23 22

0

5

10

15

20

25

30

35

40

45

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

% Below

June 02, 2014 5

Strategy

Stock specific surprises

Among the big caps:

Stocks that surprised on the upside were Malaysia Airports, KL

Kepong, HLFG, YTLP and TNB.

Stocks that negatively surprised were Malaysian Airlines, AirAsia X,

Bumi Armada, Guinness, Felda Global, Axiata, Telekom and Dialog.

1Q 2014 results roundup: Outperformers and underachievers

Stock Core net profit

vs. MBB-KE’s forecasts

Comments (on current quarter results)

OUTPERFORMERS

Ann Joo 1Q14 at 67% of our full-year

Exceptionally strong sales volume at manufacturing (+70% YoY, +34% QoQ) on aggressive inventory run down in view of the attractive ASPs.

Ta Ann 1Q14 at 35% of our full year

Logs division outperformed on stronger logs export volume, while plywood division could have turned profitable – these offset weaker-than-expected plantation earnings.

Malaysia Airports 1Q14 at 31% of our full-year

Lower-than-expected taxes, while most revenue and cost indicators performed largely as expected.

Magnum 1Q14 at 30% of our full-year

Lower-than-expected price payout, but revenue fell YoY despite an equal number of draws.

KL Kepong 2QFY14 at 29% of our full-year

Strong downstream (mainly oleo-chemical) earnings, while YoY growth was also lifted by higher CPO ASP which offset lower FFB output.

TSH Resources 1Q14 at 28% of our full-year

Lower-than-expected cost of production which could be due to streamlining of operations at the estates, and manuring process which could be slightly behind schedule.

HLFG 3QFY14 at 27% of our full-year

Higher-than-expected contributions from the insurance division, which has benefited from lower reserving amid rising bond yields.

Sunway REIT 3QFY6/14 at 26% of our full-year

Stronger performance at Sunway Pyramid (positive rental reversions) and better-than-expected occupancy rates at its hotels due to aggressive marketing and promotion activities, and a pick-up in corporate bookings at the hotels.

YTL Power 3QFY14 at 26% of our full-year

Lower-than-expected taxes, while segmental results were mixed with other op-cos (except Power Seraya) performing well. Power Seraya was impacted by competitive pressures.

TNB 2QFY8/14 at

23% of our full year

Lower taxes, lower coal costs and lower IPP charges.

UNDERACHIEVERS

Malaysian Airlines System

Core loss of MYR470m

Challenging yield environment – yields contracted 9% YoY, much greater than regional peers‟ experience.

AirAsia X Core loss of MYR60m

Australian sectors continue to struggle, responsible for the losses.

NCB Holdings 1Q14 at 4% of our full-year

Softer throughput, provision of monthly port lease rental, higher repair/maintenance costs and higher depreciation with the start of operations at the new CT4; logistics remained in the red.

TH Plantations 1Q14 at 7% of our full-year

Higher-than-expected cost of production per tonne.

Source: Maybank KE

June 02, 2014 6

Strategy

1Q 2014 results roundup: Outperformers and underachievers (continued)

Stock Core net profit vs. MBB-KE’s forecasts

Comments (on current quarter results)

UNDERACHIEVERS

Tan Chong 1Q14 at 14% of our full-year

Weaker vehicle sales (-11% QoQ, -19% YoY) and depressed EBITDA margin (-2ppts QoQ to 8.1%), impacted by intense price wars in the B-segment (50% of TCM‟s total vehicle sales).

Bumi Armada 1Q14 at 14% of our full-year

OSV hit by low utilisation and scheduled dry-dock costs, T&I impacted by timing of the Lukoil operations.

MPHB Capital 1Q14 at 14% of our full-year

Higher-than-expected claims at the insurance business.

Eversendai 1Q14 at 15% of our full-year

Longer-than-expected contract execution for projects in Middle East and India given the intricate fabrication requirements, extra cost incurred for the development of its fabrication yard at UAE.

Guinness 3QFY14 at 16% of our full-year

Weak consumption with revenue down 16% YoY and 25% QoQ.

Hock Seng Lee 1Q14 at 16% of our full-year

Timing of projects, with major new jobs at their commencement phase resulting in 15% YoY and 20% QoQ decline in works recognition.

TIME dotCom 1Q14 at 16% of our full-year

Sequential contraction in revenue (which could be lumpy), tax rate was also higher than expected.

MSM Malaysia 1Q14 at 17% of our full-year

Lower domestic and export sales.

Star Publications 1Q14 at 17% of our full-year

Shortfall in print and new media segment, due to poor adex sentiment.

Felda Global Ventures

1Q14 at 17% of our full-year

Poor FFB output and losses at its North American downstream operations, hampered by logistical challenges following the extreme cold weather.

Axiata 1Q14 at 18% of our full-year

Higher-than-expected taxes (at XL in particular).

MBM Resources 1Q14 at 18% of our full-year

Weaker associates‟ contributions (start-up losses at new Perodua and Hino facilities, lower

Perodua vehicle sales), lower EBIT at auto parts manufacturing (higher utility costs, start-up losses at the alloy wheel plant), and weaker motor trading EBIT (higher A&Ps).

Telekom 1Q14 at 19% of our full-year

Higher depreciation (accelerated depreciation charge) and taxes.

Dialog 3QFY14 at 20% of our full-year

Lower contributions from associate due to higher pre-operating expenses at the Pengerang tank terminal operations, and lower EPCC works.

Source: Maybank KE

Some observations

Results surprises from Malaysia Airport, the two telco stocks (Axiata,

Telekom) and the two power stocks (TNB, YTLP) came partly or largely

from taxes, while their operational performances have been in line.

Results disappointment from the airlines came from a still challenging

environment (yield contraction for Malaysian Airlines, losses at the

Australian sectors for AirAsia X).

Results disappointment from the auto sector came partly from lower

volume sales (Tan Chong, Perodua for MBM) and margins compression

on higher A&Ps as competition heats up.

Pockets of results disappointment at the consumer sector came from

weaker consumer sentiment (volume sales were down at Guinness,

MSM) and poorer adex sentiment (Star Publications).

June 02, 2014 7

Strategy

Stock upgrades and downgrades

We have raised our call on just one stock and downgraded on seven stocks,

compared to seven upgrades and eight downgrades in the previous quarter.

Ann Joo is now a BUY due to limited downside to its profitability and

the stock is already trading at below trough P/B.

Of our seven downgrades, three stocks are now SELLs – Malaysian

Airlines, TH Plantations and NCB.

1Q 2014 results roundup: Stock upgrades and downgrades

Stock Old Call New Call Old TP New TP Reason for upgrades / downgrades

UPGRADES

Ann Joo Hold Buy 1.20 1.60 Limited downside to share price given improved profitability,

preliminary trade actions against dumping activities, and the stock is already trading at below trough P/BV of 0.7x.

DOWNGRADES

Tan Chong Buy Hold 6.80 5.25 Earnings forecasts slashed by up to 34%; current valuations (12.8x FY15 PER) fair.

Malaysian Airlines System

Hold Sell 0.22 0.175 We project a larger net loss of MYR1.2b in FY14, and expect MAS

to be loss making up till 2016. From a standalone basis, there is no investment case to own MAS.

AirAsia X Buy Hold 0.86 0.79 No near term catalyst – 2Q14 losses expected to be larger than 1Q14, being seasonally a weak quarter.

Star Publications Buy Hold 2.55 2.55 Significant share price outperformance (+17%) since our BUY call; current share price at our TP.

TH Plantations Hold Sell 1.65 1.65 Share price has significantly overshot our TP; valuations are pricey.

TSH Resources Buy Hold 3.40 3.40 Significant share price outperformance (+26%) since our BUY call; current share price at our TP.

NCB Hold Sell 3.60 2.75 Weak operating outlook; valuations are pricey after our earnings downgrade.

Source: Maybank KE

June 02, 2014 8

Strategy

Market earnings & valuations

Market earnings shaved

Our KLCI core earnings estimates are shaved by 0.7% for 2014 and 1.1% for

2015 post the 1Q14 results reporting season, after tweaking our forecasts

for a few of the banks, utility and oil & gas stocks. At the same time, our

research universe core earnings forecasts are lowered by a higher 1.8% for

2014 and 1.0% for 2015, after incorporating our major downgrade on

Malaysian Airlines‟ earnings – we now project a larger net loss of MYR1.2b

in FY14 vs MYR0.2b loss previously, and we expect Malaysian Airlines to be

loss making up to FY16 vs profitability in FY15 previously.

Growth estimates lowered

We now expect KLCI‟s core earnings to grow a slower 7.0%/8.0% in

2014/2015 vs 8.1%/8.0% previously. The revised core earnings growth of

our research universe, which makes up 75% of the market capitalisation of

the Malaysian bourse, is now 7.9%/10.4% for 2014/2015 vs 12.3%/9.5%

previously. With the exception of the auto and gaming (NFO) sectors where

we anticipate earnings to contract, and the aviation sector where we

expect the combined earnings to remain in the red, we expect all other

sectors to record earnings growth this year.

Malaysia market earnings growth & valuation as at 30 May 2014

2013A 2014E 2015E

KLCI 30 @ 1,873.4 PE (x) 18.0 16.7 15.5

Earnings Growth (%) – current 5.4% 7.0% 8.0%

Earnings Growth (%) – Mar‟ 14 est 5.1% 8.1% 8.4%

Earnings Growth (%) – Nov „13 est 5.3% 8.1% 8.0%

Maybank IB’s Research Universe PE (x) 18.7 17.4 15.7

Earnings Growth (%) – current 6.8% 7.9% 10.4%

Earnings Growth (%) – Mar‟ 14 est 4.5% 12.3% 9.5%

Earnings Growth (%) – Nov „13 est 5.0% 10.1% 9.2%

Source: Maybank KE

Research Universe: Earnings breakdown by sector – CY2014

KLCI 30: Earnings breakdown by sector – CY2014

Source: Maybank KE Source: Maybank KE

Banking & Finance

33%

Building materials

1%Consumer7%

Construction, Infra 3%

Gaming6%

Gloves1%

Oil & Gas8%

Media1%

Plantation10%

Property5%

Telcos11%

Transport3%

Utilities11%

Banking & Financials

40%Consumer

2%Gaming

6%

Oil & Gas10%

Plantations12%

Property1%

Telcos13%

Transport3%

Utilities12% Media

1%

June 02, 2014 9

Strategy

Maybank IB Research Universe earnings growth, PERs, P/B, ROE

Earnings Growth (%) PE (x) P/B (x) ROE (%)

Rec Sector CY 13A CY 14E CY 15E CY 13A CY 14E CY 15E CY 13A CY 14E CY 13A CY 14E

NT Banking & Finance 6.6 8.4 9.7 14.2 13.1 12.0 2.3 2.1 15.9 15.6

NT Non-banking Finance 9.6 3.7 6.4 23.4 22.5 21.2 2.9 2.9 12.3 13.0

NT Building materials 11.2 15.6 5.9 22.9 19.9 18.7 2.1 2.1 9.3 10.5

NT Consumer 14.2 11.2 11.0 27.3 24.6 22.1 3.8 3.6 14.0 14.7

OW Automotive 9.1 (2.7) 23.5 13.7 14.1 11.4 2.3 1.8 16.8 12.6

OW Construction, Infra 7.1 11.3 11.0 16.5 14.8 13.4 2.2 1.7 13.5 11.7

NT Gaming - NFO 9.0 (6.3) 3.3 13.6 14.5 14.1 2.4 3.1 17.8 21.3

NT Gaming - Casino (11.7) 6.1 9.7 17.1 16.1 14.7 1.7 1.6 10.0 10.0

OW Gloves 5.9 5.8 15.8 18.0 17.0 14.7 3.9 3.4 21.6 20.2

NT Media (0.4) 14.8 17.0 25.0 21.7 18.6 6.0 5.8 24.2 26.9

OW Oil & Gas 106.6 8.3 51.4 28.6 26.4 17.5 4.1 2.8 14.2 10.4

NT Petrochemicals (13.8) 15.9 1.4 17.1 14.7 14.5 2.8 2.6 16.2 17.5

NT Plantation (18.1) 12.8 4.5 22.9 20.3 19.4 2.4 2.5 10.7 12.3

NT Property - Developer 54.1 6.5 10.2 13.6 12.7 11.5 1.7 1.3 12.7 10.4

NT Property - REIT 33.0 9.2 1.3 19.0 17.4 17.2 1.3 1.1 7.0 6.4

NT Telcos 13.3 2.0 5.4 22.9 22.4 21.3 4.8 4.9 20.8 22.1

NT Transport - Aviation (128.5) 0.5 NM NM NM 38.1 1.8 1.5 (1.4) (1.2)

OW Transport - Shipping 33.2 3.4 7.8 18.0 17.5 16.2 1.3 1.1 7.3 6.4

NT Transport - Ports (8.0) 20.8 2.6 21.7 18.0 17.5 3.7 3.5 16.9 19.5

OW Utilities 30.3 5.5 4.2 17.0 16.1 15.4 2.4 2.3 13.9 14.1

Stocks under cvrg 6.8 7.9 10.4 18.7 17.4 15.7 2.5 2.3 13.6 13.4

OW = Overweight; UW = Underweight; NT = Neutral; Source: Maybank KE

Market valuations

YTD (30 May), the KLCI gained 0.3%, underperforming its regional peers:

JCI +14.5%, PSEi +12.9%, SET +9% and STI +4.1%. At 1,873, the KLCI trades

at 16.7x/15.5x PERs for 2014/2015 and 16.1x on 12M forward PER. The 12M

forward PER of 16.1x is at +0.7SD of its long-term mean (since 2001) of

15.1x. The KLCI has neither re-rated nor de-rated much in the last 5M,

trading within the 15.8x-16.3x 12M forward PER range (2013: 15.3-16.6x).

Based on projected earnings growth of 8%, PEG is about 2x, above that of

its regional peers. On a trailing P/BV basis, the KLCI is trading at 2.3x,

marginally above its 5-year mean (since 2009) of 2.25x. Market risk

premium meanwhile has been stable at 215 bps presently.

KLCI‘s forward PER: 16.2x 1Y fwd, 16.7x/15.5x 2014/15 Market risk premium (above 10Y MGS yields)

Source: Maybank KE, Bloomberg Source: Maybank KE, Bloomberg

8

10

12

14

16

18

20

22

01 02 03 04 05 06 07 08 09 10 11 12 13 14

(x)1-Yr forward PER Mean +1 std -1 std

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

0

200

400

600

800

1000

1200

1400

1600

1800

2000

06 07 08 09 10 11 12 13 14

KLCI (LHS) Market risk premium (RHS)

June 02, 2014 10

Strategy

KLCI‘s trailing P/B: 2.31x end-May 2014 (5Y mean: 2.25x) KLCI’s net dividend yield: 3.1% end-May 2014

Source: Bloomberg, Maybank KE (chart) Source: Bloomberg, Maybank KE (chart)

Regional performance YTD (30 May), local currency Regional performance YTD (30 May), USD

Source: Bloomberg, Maybank KE (chart) Source: Bloomberg, Maybank KE (chart)

Regional valuations: PER vs growth Regional valuations: P/B vs ROE

Source: Bloomberg, Maybank KE (chart) Source: Bloomberg, Maybank KE (chart)

1.0

1.4

1.8

2.2

2.6

01 02 03 04 05 06 07 08 09 10 11 12 13 14

(x)KLCI P/B Mean

+1 SD -1 SD

0.0

2.0

4.0

6.0

8.0

01 02 03 04 05 06 07 08 09 10 11 12 13 14

(%)

(10.2)

(3.6)

(1.0)

(0.8)

0.3

3.5

4.1

5.4

9.0

11.4

12.9

14.4

14.5

-20 -10 0 10 20

Japan

China

Hong Kong

Korea

Malaysia

MSCI Asia ex Jap

Singapore

Taiwan

Thailand

Vietnam

Philippines

India

Indonesia

(7.2)

(6.6)

(1.0)

2.3

2.4

4.8

4.9

8.7

11.1

14.3

19.4

19.7

-10 -5 0 5 10 15 20 25 30

Japan

China

Hong Kong

Korea

Malaysia

Taiwan

Singapore

Thailand

Vietnam

Philippines

Indonesia

India

Malaysia

Singapore

Thailand Indonesia

Philippines

Vietnam

China

India

5

10

15

20

5% 10% 15% 20%

2014 PER (x)

2015 earnings gwth (%)

Malaysia

Singapore

Indonesia Philippines

Vietnam

China

India

0

1

2

3

0% 5% 10% 15% 20%

2014 P/B (x)

2014 ROE (%)

June 02, 2014 11

Strategy

Appendix 1

Dividend stocks (Maybank KE’s coverage: Stocks with more than 4% net yield)

Stocks Rec Shr px at

30-May-14

Market Cap

(MYR m) TP (RM) 2014 Net

Yld (%)

Upside to

TP (%)

Potential total

returns (%)

Quill Capita Hold 1.14 444.7 1.16 6.2 1.8 8.0

Maxis Hold 6.57 49,312.2 7.10 6.1 8.1 14.2

Berjaya Sports Toto Hold 3.82 5,149.9 3.95 6.1 3.4 9.5

Padini Holdings Buy 1.93 1,269.8 2.35 5.8 21.8 27.6

CMMT Buy 1.50 2,664.1 1.74 5.8 16.0 21.8

Star Hold 2.65 1,955.6 2.55 5.7 (3.8) 1.9

AEON Co Hold 3.88 5,447.5 3.43 5.6 (11.6) (6.0)

Media Prima Hold 2.58 2,852.0 2.52 5.5 (2.3) 3.1

Maybank NR 9.88 87,736.9 NR 5.4 NA NA

KLCC Prop Hold 6.27 11,319.4 6.25 5.3 (0.3) 5.0

Sunway REIT Hold 1.39 4,070.9 1.24 5.3 (10.8) (5.5)

MCIL Hold 0.96 1,619.7 1.01 5.3 5.2 10.5

Axis REIT Hold 3.37 1,554.4 2.71 5.2 (19.6) (14.4)

Magnum Hold 3.09 4,410.4 3.04 5.2 (1.6) 3.6

IGB REIT Hold 1.20 4,122.3 1.24 5.2 3.3 8.5

Pavilion REIT Buy 1.38 4,156.3 1.53 5.2 10.9 16.0

Carlsberg Brewery Hold 12.34 3,796.0 12.40 4.9 0.5 5.4

Guinness Hold 13.40 4,048.1 13.20 4.9 (1.5) 3.4

BAT (M) Sell 62.90 17,959.8 57.00 4.7 (9.4) (4.7)

Bursa Malaysia Hold 7.68 4,092.4 8.00 4.6 4.2 8.7

Mah Sing Hold 2.25 3,213.3 2.44 4.5 8.4 12.9

DiGi.Com Hold 5.42 42,140.5 5.00 4.4 (7.7) (3.3)

Glomac Hold 1.08 785.0 1.20 4.3 11.1 15.4

Lafarge Buy 9.88 8,395.0 9.90 4.3 0.2 4.5

SP Setia Hold 2.92 7,350.9 3.36 4.2 15.1 19.3

MSM Malaysia Holdings Hold 5.13 3,606.3 5.00 4.2 (2.5) 1.7

Telekom Hold 6.18 22,108.3 5.90 4.0 (4.5) (0.6)

Westports Buy 2.68 9,138.8 2.70 4.0 0.7 4.7

Source: Maybank KE

June 02, 2014 12

Strategy

Appendix 2

Foreign shareholding of selected stocks under coverage

Foreign shareholding Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Latest As at (month, year)

Malayan Banking 10.9 14.0 13.5 19.6 21.4 21.2 4-Apr-14

CIMB Group * 42.4 42.6 38.1 40.4 33.8 34.3 14-Mar-14

Public Bank 26.5 26.5 26.1 31.2 30.7 30.7 31-Mar-14

Axiata Group 6.7 12.2 28.0 28.0 23.0 22.0 31-Mar-14

Sime Darby 14.2 15.3 17.3 19.5 17.4 14.9 30-Apr-14

Petronas Chemicals NA NA 9.0 9.0 12.0 11.2 31-Mar-14

Maxis * 8.6 8.3 7.3 7.5 7.5 6.8 31-Mar-14

Tenaga Nasional 9.4 10.5 10.8 15.0 27.8 27.3 31-Mar-14

Petronas Gas 2.4 2.0 3.0 3.0 3.0 3.0 31-Dec-13

Genting Berhad 36.0 42.0 42.0 45.0 45.0 45.0 12-May-14

Digi.com 6.8 9.0 12.9 12.6 12.5 14.0 31-Mar-14

IOI Corporation 22.0 19.0 17.0 17.6 18.0 17.1 31-Mar-14

Hong Leong Bank NA NA 7.7 8.1 8.1 8.0 31-Mar-14

SapuraKencana * NA NA NA 22.0 32.0 29.0 31-Mar-14

KL Kepong 16.4 19.3 18.5 15.0 12.7 13.0 30-Apr-14

Genting Malaysia 31.0 35.0 37.0 38.0 39.0 39.0 12-May-14

RHB Capital 5.6 12.4 11.6 8.9 8.3 8.4 31-Mar-14

AMMB Holdings 29.6 30.0 26.2 29.0 32.0 31.0 31-Mar-14

MISC Bhd 4.3 4.9 3.9 5.5 5.9 7.2 31-Mar-14

Telekom Malaysia 9.1 11.0 19.9 16.2 13.0 18.0 31-Mar-14

British American Tobacco 22.0 25.3 26.8 28.4 28.0 29.9 30-Apr-14

YTL Corporation 22.0 23.0 23.0 27.0 28.0 28.0 31-Mar-14

UMW Holdings 5.9 11.7 13.5 25.8 16.9 16.2 30-Apr-14

UEM Sunrise NA NA 14.6 17.3 14.9 14.7 30-Apr-14

Bumi Armada NA NA NA 18.0 12.3 13.3 30-Apr-14

Gamuda 35.0 36.0 33.0 37.0 40.0 38.0 28-Feb-14

YTL Power Int'l 5.0 5.0 9.0 8.0 9.0 9.0 31-Mar-14

S P Setia 24.0 24.0 17.6 1.7 8.8 8.3 25-Apr-14

AirAsia NA 51.4 51.0 48.3 50.2 49.4 30-Apr-14

IJM Corp NA NA 41.3 36.6 40.5 43.2 30-Apr-14

MAHB NA NA 9.5 11.3 15.0 13.2 31-Mar-14

Dialog Group NA NA NA 16.0 16.0 16.0 31-Dec-13

Genting Plantations NA NA 9.8 9.0 8.0 7.0 31-Mar-14

Malaysia Airline System NA NA 4.0 4.5 2.0 2.0 31-Mar-14

Sunway Berhad * NA NA 21.8 20.5 14.2 14.7 30-Apr-14

MMHE NA 14.1 5.4 4.6 2.0 2.0 31-Mar-14

Mah Sing 17.7 16.7 20.9 24.8 23.7 19.4 5-May-14

WCT 9.0 14.0 14.0 10.0 13.0 9.9 15-May-14

KNM 16.0 26.0 16.0 16.0 20.0 20.0 30-Sep-13

Glomac NA NA NA NA 8.4 6.2 30-Apr-14

Oldtown * NA NA NA NA 35.7 36.0 31-Mar-14

Market 20.4 21.9 22.7 23.9 23.2 23.1 30-Apr-13

* CIMB: Inclusive of BTMU’s 5.0%;

* Maxis: Excludes Saudi Telco’s 17.5% effective stake;

* Sunway Berhad: Includes GIC’s 8.7%;

* SapuraKencana: Includes Seadrill’s 12%;

* OldTown: 4% at Feb 2012, 37% at Feb 2013

Note: Highlighted/shaded are stocks which have foreign shareholding close to, or above 20% (based on latest data available)

Sources: Companies, compiled by Maybank KE

June 02, 2014 13

Strategy Maybank KE Equity Research Stock Universe

Ticker

Company FYE Price Market TP Reco

m

Core Net Profit EPS CAGR

CAGR

PER PER PER ROE Div

Yld

PBV Price

chg 30-May Cap CY13A CY14F CY15F CY13AAA

CY14F CY14F 13-15 CY13A CY14F CY15F CY14A

CY14F CY13A

YTD MYR m MYR MYR m MYR sen (%) (x) (%) (%) (x) (%)

Autos

BAUTO MK Berjaya Auto * 4 2.03 1,633 2.38 Buy 87.1 131 162 11.1 16.3 20.1 34.8 18.3 12.4 10.1 36.5 2.4 6.5 23.0

MBM MK MBM Resources * 12 3.14 1,227 3.60 Buy 137.7 108 157 35.2 27.7 40.1 6.7 8.9 11.3 7.8 7.1 2.2 0.9 (2.2)

TCM MK Tan Chong * 12 5.40 3,525 5.25 Hold 292.6 191 286 44.8 29.3 43.8 -1.1 12.1 18.4 12.3 6.8 2.2 1.3 (12.8)

UMWH MK UMW Hldgs * 12 10.80 12,618 12.44 Buy 867.9 917 1,060 74.3 78.5 90.7 10.5 14.5 13.8 11.9 13.6 3.6 2.0 (10.4)

Banking

MAY MK Maybank 12 9.88 87,737 NR NR 6,552 6,938 7,562 75.8 76.7 80.3 2.9 13.0 12.9 12.3 13.2 5.4 1.9 (0.6)

AMM MK AMMB Holdings 3 7.34 22,124 8.50 Buy 1,742 1,894 2,050 58.0 62.9 68.0 8.3 12.7 11.7 10.8 13.5 3.5 1.7 1.4

BIMB MK BIMB Holdings * 12 3.94 5,884 4.40 Hold 279 509 563 25.8 34.1 37.7 20.8 15.2 11.6 10.5 15.7 2.1 2.1 (13.2)

CIMB MK CIMB 12 7.34 61,190 8.00 Hold 4,178 4,551 5,091 55.2 55.3 61.9 5.9 13.3 13.3 11.9 12.5 3.0 1.9 (3.7)

HLBK MK Hong Leong Bk 6 13.88 24,967 16.20 Buy 1,964 2,171 2,372 110.5 120.7 131.9 9.3 12.6 11.5 10.5 14.4 2.8 1.8 (3.6)

HLFG MK HL Financial 6 15.40 16,213 17.30 Buy 1,506 1,593 1,728 144.8 153.2 166.2 7.1 10.6 10.1 9.3 13.5 2.5 1.5 (0.5)

PBK MK Public Bank 12 21.60 75,646 18.00 Sell 4,065 4,319 4,705 116.1 123.3 134.3 7.6 18.6 17.5 16.1 18.7 2.5 3.7 11.3

RHBC MK RHB Capital 12 8.40 21,394 8.70 Hold 1,831 2,003 2,242 72.9 78.7 88.0 9.9 11.5 10.7 9.5 10.7 2.2 1.3 6.3

Building Materials

AJR MK Ann Joo - 12 1.10 551 1.60 Buy 23.2 62 78 4.4 11.9 14.8 83.4 25.0 9.2 7.4 5.6 - 0.5 4.8

LMC MK Lafarge * 12 9.88 8,395 9.90 Buy 366.6 389 400 43.1 45.7 47.0 4.4 22.9 21.6 21.0 11.9 4.3 2.6 15.3

Construction / Infra

EVSD MK Eversendai * 12 1.00 774 0.98 Hold 31.0 76 83 4.0 9.8 10.7 63.6 25.0 10.2 9.3 8.4 2.4 0.4 (3.8)

GAM MK Gamuda * 7 4.40 10,163 4.45 Hold 644.4 687 742 27.7 31.8 34.4 11.6 15.9 13.8 12.8 13.5 3.0 2.0 (8.3)

HSL MK HSL * 12 1.99 1,094 2.25 Buy 85.2 84 98 15.3 15.2 17.9 8.2 13.0 13.1 11.1 13.9 1.6 2.0 6.4

IJM MK IJM Corp * 3 6.69 9,679 7.20 Buy 511.5 579 643 36.1 40.6 45.1 11.8 18.5 16.5 14.8 8.2 2.4 1.5 13.8

LTK MK Litrak * 3 3.86 1,988 4.45 Buy 133.1 142 163 26.1 27.8 31.8 10.5 14.8 13.9 12.1 26.8 4.4 4.1 (11.7)

WCT MK WCT * 12 2.16 2,342 2.55 Buy 200.5 193 202 18.7 17.7 18.4 -0.8 11.6 12.2 11.7 8.3 3.1 1.1 5.4

CMS MK CMS * 12 10.00 3,453 10.50 Buy 175.4 208 252 51.6 61.3 74.2 19.9 19.4 16.3 13.5 11.6 1.8 2.1 45.6

KICB MK Kimlun Corp * 12 1.64 493 1.90 Buy 36.4 55 62 12.1 18.2 20.6 30.5 13.6 9.0 8.0 16.1 3.0 1.6 (2.1)

Consumer

AEON MK AEON Co * 12 3.88 5,448 3.43 Hold 231.0 254 278 65.8 72.3 79.1 9.6 5.9 5.4 4.9 13.9 5.6 0.8 10.9

ROTH MK BAT (M) - 12 62.90 17,960 57.00 Sell 823.4 893 949 288.4 312.9 332.4 7.4 21.8 20.1 18.9 161.6 4.7 35.3 (1.9)

CAB MK Carlsberg 12 12.34 3,796 12.40 Hold 184 201 205 60.2 65.6 67.0 5.5 20.5 18.8 18.4 67.4 4.9 13.7 1.3

GUIN MK Guinness 6 13.40 4,048 13.20 Hold 207 199 203 68.7 65.8 67.1 -1.2 19.5 20.4 20.0 55.3 4.9 5.6 (16.3)

RJR MK JTI 12 8.18 2,139 8.20 Hold 122 128 135 46.5 49.0 51.6 5.3 17.6 16.7 15.9 29.9 2.7 5.0 26.2

PAD MK Padini Holdings # 6 1.93 1,270 2.35 Buy 92 105 115 14.0 15.9 17.5 11.8 13.8 12.1 11.1 25.3 5.8 3.3 6.6

NESZ MK Nestle * 12 67.26 15,772 64.00 Hold 562 610 703 239.5 260.3 299.9 11.9 28.1 25.8 22.4 72.1 3.7 19.3 (1.1)

QLG MK QL Resources * 3 3.27 4,081 3.15 Hold 153 178 203 12.3 14.3 16.2 14.7 26.5 22.8 20.2 12.9 1.5 3.4 15.1

MSM MK MSM Malaysia

Holdings

* 12 5.13 3,606 5.00 Hold 253 228 277 36.0 32.4 39.3 4.5 14.3 15.8 13.1 11.8 4.2 1.9 2.6

OTB MK Oldtown * 3 2.08 942 2.67 Buy 56 65 74 12.3 14.4 16.3 14.9 16.9 14.5 12.8 17.3 3.8 2.7 0.0

IHH MK IHH * 12 4.11 33,538 3.80 Hold 649 825 963 8.0 10.2 11.8 21.4 51.4 40.3 34.8 4.4 0.6 1.8 6.5

* Shariah compliant (under Securities Commission’s new Shariah compliant list) # No longer Shariah compliant; Source: Maybank KE

June 02, 2014 14

Strategy Maybank KE Equity Research Stock Universe (continued)

Ticker

Company FYE Price Market TP Reco

m

Core Net Profit EPS CAGR

CAGR

PER PER PER ROE Div

Yld

PBV Price

chg 30-May Cap CY13A CY14F CY15F CY13A

CY14F CY15F 13-15 CY13A CY14F CY15F CY14A

CY14F CY13A

YTD MYR m MYR MYR m MYR sen (%) (x) (%) (%) (x) (%)

Gaming

BST MK BToto 4 3.82 5,150 3.95 Hold 372 378 391 27.8 28.0 28.9 2.0 13.7 13.6 13.2 56.0 6.1 8.5 (3.5)

MAG MK Magnum 12 3.09 4,410 3.04 Hold 329 279 287 23.1 19.5 20.1 -6.7 13.4 15.8 15.4 11.0 5.2 1.8 (2.2)

GENT MK Genting Bhd 12 9.73 36,165 10.22 Hold 1,758 2,066 2,314 47.6 55.9 62.6 14.7 20.4 17.4 15.5 8.6 0.6 1.4 (5.2)

GENM MK Genting Msia 12 4.07 23,085 4.74 Buy 1,714 1,619 1,727 30.2 28.5 30.4 0.3 13.5 14.3 13.4 10.3 1.6 1.5 (7.1)

Manufacturin

g

HART MK Hartalega Hldgs * 3 6.15 4,596 6.70 Hold 234 234 285 31.6 29.6 35.3 5.7 19.5 20.8 17.4 20.5 2.2 5.1 (14.9)

KRI MK Kossan Rubber * 12 4.01 2,564 5.00 Buy 141 169 191 22.0 26.4 29.8 16.4 18.2 15.2 13.5 21.1 3.0 3.7 (7.2)

TOPG MK Top Glove * 8 4.84 3,004 6.00 Buy 191 196 218 30.9 31.6 35.1 6.6 15.7 15.3 13.8 13.5 3.3 2.2 (14.0)

Media

ASTRO MK Astro Malaysia 1 3.40 17,674 3.37 Hold 446 564 725 8.6 10.8 13.9 27.7 39.8 31.5 24.4 75.6 3.2 28.7 13.3

MCIL MK MCIL - 3 0.96 1,620 1.01 Hold 161 169 178 9.9 10.1 10.6 3.4 9.7 9.5 9.1 21.4 5.3 2.3 (1.5)

MPR MK Media Prima 12 2.58 2,852 2.52 Hold 214 224 230 19.2 19.3 19.9 1.8 13.4 13.4 13.0 13.0 5.5 1.7 (1.5)

STAR MK Star * 12 2.65 1,956 2.55 Hold 145 152 163 19.6 20.5 22.0 5.9 13.5 12.9 12.0 12.7 5.7 1.7 18.8

Oil & Gas

AMRB MK Alam Maritim * 12 1.53 1,226 1.90 Buy 80 98 99 10.2 12.2 12.3 9.8 15.0 12.5 12.4 13.8 0.2 2.0 (2.5)

DLG MK Dialog * 6 3.66 8,902 3.90 Buy 209 248 286 8.8 10.4 12.0 16.9 41.8 35.4 30.6 15.6 1.1 6.3 2.2

PETR MK Perdana Petro * 12 1.78 1,314 2.55 Buy 61 100 122 8.5 13.7 16.8 40.6 20.9 13.0 10.6 13.5 - 2.8 11.9

WSC MK Wah Seong * 12 1.91 1,479 1.50 Hold 42 83 91 5.5 10.8 11.8 46.5 34.7 17.7 16.2 7.9 3.9 1.2 16.5

MMHE MK MMHE * 12 3.80 6,080 4.20 Buy 237 175 331 14.8 10.9 20.7 18.3 25.7 34.9 18.4 6.5 1.3 2.4 8.6

BAB MK Bumi Armada - 12 3.52 10,323 4.55 Buy 449 41 444 15.3 14.3 15.2 -0.3 23.0 24.6 23.2 0.9 - 2.4 (12.7)

YNS MK Yinson - 1 5.18 2,675 6.15 Buy 63 109 147 24.5 42.1 57.1 52.6 21.1 12.3 9.1 17.6 0.4 2.6 20.5

BARAKAH MK Barakah * 12 1.61 1,009 1.90 Buy 49 73 118 4.8 8.4 13.6 68.3 33.5 19.2 11.8 29.5 - 5.8 5.2

PPT MK Perisal * 12 1.61 1,920 1.76 Buy 62 70 151 6.3 6.0 12.6 41.4 25.6 26.8 12.8 7.0 - 1.8 1.3

SAKP MK SapuraKencana * 1 4.17 24,987 5.30 Buy 983 1,310 1,655 17.4 22.0 27.6 25.9 23.9 19.0 15.1 11.5 - 2.5 (14.9)

UMWOG MK UMW O&G - 12 4.02 8,691 5.15 Buy 161 288 485 7.5 13.3 22.4 72.8 53.6 30.2 17.9 9.2 - 3.1 0.2

Plantation

GENP MK Genting Plant * 12 11.24 8,571 11.20 Hold 305 419 474 40.2 55.2 62.4 24.6 28.0 20.4 18.0 11.2 1.0 2.5 1.8

IOI MK IOI Corp * 6 4.93 31,322 3.95 Sell 1,601 1,395 1,270 24.9 21.7 19.8 -10.9 19.8 22.7 25.0 21.2 2.0 3.4 4.7

KLK MK KL Kepong * 9 23.92 25,474 24.00 Hold 954 1,134 1,121 89.4 106.2 105.0 8.4 26.8 22.5 22.8 14.0 2.7 3.5 (3.9)

SIME MK Sime Darby * 6 9.55 57,912 10.30 Buy 3,225 3,251 3,445 53.7 54.1 57.4 3.4 17.8 17.7 16.7 11.1 3.1 2.1 0.3

FGV MK Felda Global * 12 4.24 15,468 4.48 Hold 90 691 788 2.5 18.9 21.6 193.9 169.6 22.4 19.6 10.0 1.8 2.4 (5.6)

SOP MK SOP * 12 7.02 3,079 6.90 Buy 97 153 201 22.3 35.0 46.0 43.6 31.5 20.1 15.3 11.2 0.8 2.5 7.8

TSH MK TSH Resources * 12 4.00 3,588 3.40 Hold 112 145 164 13.0 16.0 18.2 18.3 30.8 25.0 22.0 12.4 1.2 3.3 32.9

THP MK TH Plantations * 12 2.10 1,853 1.65 Sell 63 75 97 7.2 8.6 11.0 23.6 29.2 24.4 19.1 6.1 2.0 1.6 11.7

TAH MK Ta Ann * 12 4.29 1,590 4.75 Buy 61 82 117 16.3 22.0 31.7 39.5 26.3 19.5 13.5 7.6 2.2 1.7 2.9

* Shariah compliant (under Securities Commission’s new Shariah compliant list) # No longer Shariah compliant; Source: Maybank KE

June 02, 2014 15

Strategy Maybank KE Equity Research Stock Universe (continued)

Ticker

Company FYE Price Market TP Reco

m

Core Net Profit EPS CAGR

CAGR

PER PER PER ROE Div

Yld

PBV Price

chg 30-May Cap CY13A CY14F CY15F CY13

A

CY14F CY15F 13-15 CY13A CY14F CY15F CY14

A

CY14F CY13

A

YTD MYR m MYR MYR m MYR sen (%) (x) (%) (%) (x) (%)

Non-Banking Finance

BURSA MK Bursa Malaysia 12 7.68 4,092 8.00 Hold 173 187 200 32.5 35.2 37.5 7.4 23.6 21.8 20.5 23.1 4.6 5.1 (6.7)

MPHB MK MPHB Capital 12 2.05 1,466 2.42 Buy 65 59 63 12.4 6.8 8.3 -18.2 16.5 30.1 24.7 5.2 - 1.4 22.0

Petrochemicals

PCHEM MK Petronas Chem * 12 6.74 53,920 6.85 Hold 3,156 3,659 3,712 39.5 45.7 46.4 8.4 17.1 14.7 14.5 15.8 3.4 2.3 (2.6)

Property

AXRB MK Axis REIT * 12 3.37 1,554 2.71 Hold 89 91 94 19.4 19.8 20.6 3.0 17.4 17.0 16.4 9.1 5.8 1.6 15.0

KLCC MK KLCC Prop * 12 6.27 11,319 6.25 Hold 626 652 675 34.7 36.1 37.4 3.8 18.1 17.4 16.8 6.0 5.3 0.8 7.2

MSGB MK Mah Sing * 12 2.25 3,213 2.54 Hold 281 349 428 17.3 25.2 30.8 33.4 13.0 8.9 7.3 16.2 4.5 1.7 (0.4)

QUIL MK Quill Capita 12 1.14 445 1.16 Hold 35 36 38 8.9 9.3 9.7 4.4 12.8 12.3 11.8 6.8 6.9 0.8 (3.4)

SPSB MK SP Setia * 10 2.92 7,351 3.36 Hold 428 503 626 18.1 20.5 25.4 18.5 16.1 14.3 11.5 8.7 4.2 1.2 (3.0)

ULHB MK UEM Sunrise * 12 2.05 9,302 2.12 Hold 579 579 544 13.0 13.0 12.2 -3.1 15.8 15.8 16.8 9.0 2.0 1.7 (13.1)

SWB MK Sunway Berhad * 12 3.11 5,361 2.79 Hold 483 501 516 30.6 29.0 30.0 -1.0 10.2 10.7 10.4 8.7 1.9 0.9 14.3

ECW MK Ecoworld - 10 5.00 1,267 6.40 Buy 22 18 76 3.7 2.3 3.9 2.0 134.5 214.3 129.3 0.7 - 7.9 31.6

GLMC MK Glomac * 4 1.08 785 1.20 Hold 149 112 139 13.5 15.4 19.1 18.9 8.0 7.0 5.7 12.2 4.3 0.9 (3.6)

CMMT MK CMMT 12 1.50 2,664 1.74 Buy 149 230 165 8.4 8.5 9.1 4.1 17.9 17.6 16.5 7.1 6.4 1.3 7.1

SREIT MK Sunway REIT 6 1.39 4,071 1.24 Hold 219 230 222 7.5 7.9 9.1 10.2 18.5 17.7 15.3 6.4 5.9 1.1 12.1

IGBREIT MK IGB REIT 12 1.20 4,122 1.24 Hold 207 217 222 6.1 6.3 6.5 3.2 19.7 19.0 18.5 6.0 5.2 1.1 0.8

PREIT MK Pavilion REIT 12 1.38 4,156 1.50 Buy 210 227 230 7.0 7.5 7.6 4.2 19.7 18.4 18.2 6.8 5.7 1.3 7.8

Telecommunications

DIGI MK DiGi.Com * 12 5.42 42,141 5.00 Hold 1,706 1,860 1,908 21.9 23.9 24.5 5.8 24.7 22.7 22.1 281.3 4.4 60.2 9.3

T MK Telekom * 12 6.18 22,108 5.90 Hold 1,039 979 1,055 29.0 27.4 29.5 0.9 21.3 22.6 20.9 13.5 4.0 3.1 11.4

AXIATA MK Axiata * 12 6.93 59,330 7.00 Hold 2,900 2,809 3,028 34.0 32.9 35.4 2.0 20.4 21.1 19.6 13.8 3.6 3.0 0.4

MAXIS MK Maxis * 12 6.57 49,312 7.10 Hold 1,765 2,054 2,121 23.5 27.4 28.3 9.7 28.0 24.0 23.2 40.6 6.1 8.2 (9.6)

TDC MK Time dotCom * 12 4.35 2,493 4.60 Hold 260 120 132 45.4 21.0 23.0 -28.8 9.6 20.7 18.9 5.7 1.5 1.2 22.5

Transport

AIRA MK AirAsia - 12 2.50 6,954 2.65 Buy 418 705 710 15.0 25.3 25.5 30.4 16.7 9.9 9.8 12.6 2.0 1.4 13.6

AAX MK AirAsia X * 12 0.75 1,778 0.79 Hold (22) -67 169 -0.9 -2.8 7.1 n.a. n.a. n.a. 10.6 (4.6) - 1.4 (24.6)

MAHB MK MAHB 12 7.56 10,389 7.03 Sell 362 391 461 29.4 28.8 34.0 7.5 25.7 26.3 22.2 6.7 2.1 2.0 (16.0)

MAS MK MAS * 12 0.18 3,008 0.18 Sell (935) -1,207 -759 -6.0 -7.0 -5.0 n.a. n.a. n.a. n.a. (42.4) - 0.7 (41.9)

WPRTS MK Westports * 12 2.68 9,139 2.70 Buy 435 484 484 12.8 14.2 14.2 5.3 20.9 18.9 18.9 28.0 4.0 5.7 5.9

NCB MK NCB Holdings * 12 3.02 1,420 2.75 Sell 52 105 119 11.0 22.3 25.3 51.7 27.5 13.5 11.9 7.1 3.0 1.0 (13.7)

MISC MK MISC * 12 6.18 27,586 7.20 Buy 1,529 1,581 1,705 34.2 35.4 38.2 5.7 18.1 17.5 16.2 5.9 - 1.2 8.4

Utilities

TNB MK Tenaga * 8 12.06 68,062 14.0

0

Buy 4,409 5,251 5,515 78.7 93.0 97.7 11.4 15.3 13.0 12.3 13.2 2.4 1.9 6.0

PTG MK Petronas Gas * 12 24.50 48,479 23.5

0

Hold 2,141 1,668 1,729 108.2 84.3 87.4 -10.1 22.6 29.1 28.0 15.5 2.4 4.7 0.9

GMB MK Gas Msia * 12 3.61 4,635 3.80 Hold 171 182 192 13.4 14.2 14.9 5.4 26.9 25.4 24.2 18.1 3.9 4.6 (6.7)

YTLP MK YTL Power - 6 1.51 10,257 1.66 Hold 1,028 1,074 1,080 14.4 15.1 15.2 2.7 10.5 10.0 9.9 9.3 0.6 1.0 (16.1)

* Shariah compliant (under Securities Commission’s new Shariah compliant list) # No longer Shariah compliant; Source: Maybank KE

June 02, 2014 16

Strategy

Research Offices

REGIONAL

WONG Chew Hann, CA

Regional Head of Institutional Research

(603) 2297 8686 wchewh@maybank-ib.com

ONG Seng Yeow

Regional Head of Retail Research

(65) 6432 1453 ongsengyeow@maybank-ke.com.sg

Alexander GARTHOFF

Institutional Product Manager

(852) 2268 0638 alexgarthoff@kimeng.com.hk

ECONOMICS

Suhaimi ILIAS

Chief Economist

Singapore | Malaysia

(603) 2297 8682 suhaimi_ilias@maybank-ib.com

Luz LORENZO

Philippines

(63) 2 849 8836 luz_lorenzo@maybank-atrke.com

Tim LEELAHAPHAN

Thailand (662) 658 1420 tim.l@maybank-ke.co.th

JUNIMAN

Chief Economist, BII

Indonesia

(62) 21 29228888 ext 29682 Juniman@bankbii.com

Josua PARDEDE

Economist / Industry Analyst, BII

Indonesia

(62) 21 29228888 ext 29695 JPardede@bankbii.com

MALAYSIA

WONG Chew Hann, CA Head of Research (603) 2297 8686 wchewh@maybank-ib.com • Strategy • Construction & Infrastructure

Desmond CH’NG, ACA (603) 2297 8680 desmond.chng@maybank-ib.com • Banking & Finance

LIAW Thong Jung (603) 2297 8688 tjliaw@maybank-ib.com • Oil & Gas - Regional • Shipping

ONG Chee Ting, CA (603) 2297 8678 ct.ong@maybank-ib.com • Plantations - Regional

Mohshin AZIZ

(603) 2297 8692 mohshin.aziz@maybank-ib.com • Aviation - Regional • Petrochem

YIN Shao Yang, CPA (603) 2297 8916 samuel.y@maybank-ib.com • Gaming – Regional • Media

TAN Chi Wei, CFA (603) 2297 8690 chiwei.t@maybank-ib.com • Power • Telcos

WONG Wei Sum, CFA (603) 2297 8679 weisum@maybank-ib.com • Property & REITs

LEE Yen Ling (603) 2297 8691 lee.yl@maybank-ib.com • Building Materials • Glove Producers

CHAI Li Shin (603) 2297 8684 lishin.c@maybank-ib.com • Plantation • Construction & Infrastructure

KANG Chun Ee (603) 2297 8675 chunee@maybank-ib.com • Consumer

Ivan YAP (603) 2297 8612 ivan.yap@maybank-ib.com • Automotive

LEE Cheng Hooi Regional Chartist (603) 2297 8694 chenghooi.lee@maybank-ib.com

Tee Sze Chiah Head of Retail Research (603) 2297 6858 szechiah.t@maybank-ib.com

HONG KONG / CHINA

Howard WONG Head of Research (852) 2268 0648 howardwong@kimeng.com.hk • Oil & Gas - Regional

Alexander LATZER (852) 2268 0647 alexanderlatzer@kimeng.com.hk • Metals & Mining - Regional

Jacqueline KO, CFA (852) 2268 0633 jacquelineko@kimeng.com.hk • Consumer

Karen KWAN (852) 2268 0640 karenkwan@kimeng.com.hk • Property & REITs

Osbert TANG, CFA (852) 21 5096 8370 osberttang@kimeng.com.hk • Transport & Industrials

Philip TSE, CFA FRM (852) 2268 0643 philiptse@kimeng.com.hk • Property & REITs

Ricky WK NG, CFA

(852) 2268 0689 rickyng@kimeng.com.hk • Utilities & Renewable Energy

Simon QIAN, CFA (852) 2268 0634 simonqian@kimeng.com.hk • Telecom & Internet

Steven ST CHAN (852) 2268 0645 stevenchan@kimeng.com.hk • Banking & Financials

Warren LAU (852) 2268 0644 warrenlau@kimeng.com.hk • Technology – Regional

William YANG (852) 2268 0675 williamyang@kimeng.com.hk • Technology – Regional

INDIA

Jigar SHAH Head of Research

(91) 22 6623 2601

jigar@maybank-ke.co.in

• Oil & Gas • Automobile • Cement

Anubhav GUPTA

(91) 22 6623 2605

anubhav@maybank-ke.co.in

• Metal & Mining • Capital Goods • Property

Urmil SHAH

(91) 22 6623 2606 urmil@maybank-ke.co.in

• Technology • Media

SINGAPORE

NG Wee Siang Head of Research (65) 6432 1467 ngweesiang@maybank-ke.com.sg • Banking & Finance

Gregory YAP (65) 6432 1450 gyap@maybank-ke.com.sg • SMID Caps – Regional • Technology & Manufacturing • Telcos

Wilson LIEW (65) 6432 1454 wilsonliew@maybank-ke.com.sg • Property Developers

ONG Kian Lin (65) 6432 1470 ongkianlin@maybank-ke.com.sg • S-REITs

James KOH (65) 6432 1431 jameskoh@maybank-ke.com.sg • Consumer - Regional

YEAK Chee Keong, CFA (65) 6432 1460 yeakcheekeong@maybank-ke.com.sg

• Offshore & Marine

Derrick HENG (65) 6432 1446 derrickheng@maybank-ke.com.sg • Transport (Land, Shipping & Aviation)

WEI Bin (65) 6432 1455 weibin@maybank-ke.com.sg • Commodity • Logistics • S-chips

John CHEONG (65) 6432 1461 johncheong@maybank-ke.com.sg • Small & Mid Caps • Healthcare

INDONESIA

Wilianto IE Head of Research (62) 21 2557 1125 willianto.ie@maybank-ke.co.id • Strategy

Rahmi MARINA (62) 21 2557 1128 rahmi.marina@maybank-ke.co.id • Banking & Finance

Aurellia SETIABUDI (62) 21 2953 0785 aurellia.setiabudi@maybank-ke.co.id • Property

Anthony YUNUS (62) 21 2557 1136 anthony.yunus@maybank-ke.co.id • Consumer • Poultry

Isnaputra ISKANDAR (62) 21 2557 1129 isnaputra.iskandar@maybank-ke.co.id • Metals & Mining • Cement

Pandu ANUGRAH (62) 21 2557 1137 pandu.anugrah@maybank-ke.co.id • Infrastructure • Construction • Transport

Janni ASMAN (62) 21 2953 0784 janni.asman@maybank-ke.co.id • Cigarette • Healthcare • Retail

PHILIPPINES

Luz LORENZO Head of Research (63) 2 849 8836 luz_lorenzo@maybank-atrke.com • Strategy

Laura DY-LIACCO (63) 2 849 8840 laura_dyliacco@maybank-atrke.com • Utilities • Conglomerates • Telcos

Lovell SARREAL (63) 2 849 8841 lovell_sarreal@maybank-atrke.com • Consumer • Media • Cement

Rommel RODRIGO (63) 2 849 8839 rommel_rodrigo@maybank-atrke.com • Conglomerates • Property • Gaming • Ports/ Logistics

Katherine TAN (63) 2 849 8843 kat_tan@maybank-atrke.com • Banks • Construction

Ramon ADVIENTO (63) 2 849 8845 ramon_adviento@maybank-atrke.com • Mining

THAILAND

Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 Maria.L@maybank-ke.co.th • Consumer / Materials

Jesada TECHAHUSDIN, CFA (66) 2658 6300 ext 1394 Jesada.T@maybank-ke.co.th • Financial Services

Kittisorn PRUITIPAT, CFA, FRM (66) 2658 6300 ext 1395 Kittisorn.P@maybank-ke.co.th • Real Estate

Sittichai DUANGRATTANACHAYA (66) 2658 6300 ext 1393 Sittichai.D@maybank-ke.co.th • Services Sector

Sukit UDOMSIRIKUL Head of Retail Research (66) 2658 6300 ext 5090

Sukit.u@maybank-ke.co.th

Mayuree CHOWVIKRAN (66) 2658 6300 ext 1440 mayuree.c@maybank-ke.co.th • Strategy

Padon VANNARAT (66) 2658 6300 ext 1450 Padon.v@maybank-ke.co.th • Strategy

Surachai PRAMUALCHAROENKIT (66) 2658 6300 ext 1470 Surachai.p@maybank-ke.co.th • Auto • Conmat • Contractor • Steel

Suttatip PEERASUB (66) 2658 6300 ext 1430 suttatip.p@maybank-ke.co.th • Media • Commerce

Sutthichai KUMWORACHAI (66) 2658 6300 ext 1400 sutthichai.k@maybank-ke.co.th • Energy • Petrochem

Termporn TANTIVIVAT (66) 2658 6300 ext 1520 termporn.t@maybank-ke.co.th • Property

Woraphon WIROONSRI (66) 2658 6300 ext 1560 woraphon.w@maybank-ke.co.th • Banking & Finance

Jaroonpan WATTANAWONG (66) 2658 6300 ext 1404 jaroonpan.w@maybank-ke.co.th

• Transportation • Small cap

Chatchai JINDARAT (66) 2658 6300 ext 1401 chatchai.j@maybank-ke.co.th • Electronics

VIETNAM

LE Hong Lien, ACCA Head of Institutional Research (84) 844 55 58 88 x 8181 lien.le@maybank-kimeng.com.vn • Strategy • Consumer • Diversified • Utilities

THAI Quang Trung, CFA, Deputy Manager, Institutional Research (84) 844 55 58 88 x 8180 trung.thai@maybank-kimeng.com.vn • Real Estate • Construction • Materials

TRUONG Thanh Hang (84) 844 55 58 88 x 8085 hang.truong@maybank-kimeng.com.vn • Consumer

Le Nguyen Nhat Chuyen (84) 844 55 58 88 x 8082 chuyen.le@maybank-kimeng.com.vn • Oil & Gas NGUYEN Thi Ngan Tuyen, Head of Retail Research

(84) 8 44 555 888 x 8081 tuyen.nguyen@maybank-kimeng.com.vn • Food & Beverage • Oil&Gas • Banking

NGUYEN Trung Hoa, Dy Head of Retail Research (84) 8 44 555 888 x 8088

hoa.nguyen@maybank-kimeng.com.vn • Macro • Steel • Real estate

TRINH Thi Ngoc Diep (84) 4 44 555 888 x 8208 diep.trinh@maybank-kimeng.com.vn • Technology • Utilities • Construction

TRUONG Quang Binh (84) 4 44 555 888 x 8087 binh.truong@maybank-kimeng.com.vn • Rubber plantation • Tyres and Tubes • Oil&Gas

PHAM Nhat Bich (84) 8 44 555 888 x 8083 bich.pham@maybank-kimeng.com.vn • Consumer • Manufacturing • Fishery

NGUYEN Thi Sony Tra Mi (84) 8 44 555 888 x 8084 mi.nguyen@maybank-kimeng.com.vn • Port operation • Pharmaceutical

• Food & Beverage

June 02, 2014 17

Strategy

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

DISCLAIMERS

This research report is prepared for general circulation and for information purposes only and under no circumstances should it 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 values of 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 fundamental ratings. 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 the relevant jurisdiction‟s stock exchange in the equity analysis. Accordingly, investors‟ returns may be less than

the original sum 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, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connec ted parties and/or employees (collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. 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 forward 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. MKE 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.

MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit

business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent permitted by law, act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report.

This report is prepared for the use of MKE‟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 MKE and MKE and its Representatives 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. 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. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.

Malaysia

Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. 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.

Singapore

This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank 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), Maybank 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.

Thailand

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 may be changed after that date. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) does not confirm nor certify the accuracy of such survey result.

Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET. MBKET accepts no liability whatsoever for the actions of third parties in this respect.

US

This research report prepared by MKE 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 Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), 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 Maybank KESUSA in the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the US. This report is not directed at you if MKE 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 Maybank KESUSA is permitted to provide research material concerning investments to you under relevant legislation and regulations.

UK

This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized 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.

June 02, 2014 18

Strategy

Disclosure of Interest

Malaysia: MKE and its Representatives 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.

Singapore: As of June 02, 2014, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.

Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.

Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph

16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.

As of June 02, 2014, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.

MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in

issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report.

OTHERS

Analyst Certification of Independence

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.

Reminder

Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable

of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.

No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

Definition of Ratings

Maybank Kim Eng Research uses the following rating system

BUY Return is expected to be above 10% in the next 12 months (excluding dividends)

HOLD Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends)

SELL Return is expected to be below -10% in the next 12 months (excluding dividends)

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.

DISCLOSURES

Legal Entities Disclosures

Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim Eng

Securities (“PTKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange

Commission. Vietnam: Maybank Kim Eng Securities JSC (License Number: 71/UBCK-GP) is licensed under the State Securities Commission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) US: Maybank

KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.

June 02, 2014 19

Strategy

Malaysia Maybank Investment Bank Berhad

(A Participating Organisation of

Bursa Malaysia Securities Berhad)

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50050 Kuala Lumpur

Tel: (603) 2059 1888;

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Dealers‟ Tel: (44) 20 7626 2828

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New York Maybank Kim Eng Securities USA

Inc

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Stockbroking Business:

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Churchgate Station,

Mumbai City - 400 020, India

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17/F, Tower One & Exchange Plaza

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Thailand Maybank Kim Eng Securities

(Thailand) Public Company Limited

999/9 The Offices at Central World,

20th

- 21st Floor,

Rama 1 Road Pathumwan,

Bangkok 10330, Thailand

Tel: (66) 2 658 6817 (sales)

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Vietnam In association with

Maybank Kim Eng Securities JSC

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Saudi Arabia In association with

Anfaal Capital

Villa 47, Tujjar Jeddah

Prince Mohammed bin Abdulaziz

Street P.O. Box 126575

Jeddah 21352

Tel: (966) 2 6068686

Fax: (966) 26068787

South Asia Sales Trading Kevin FOY

kevinfoy@maybank-ke.com.sg

Tel: (65) 6336-5157

US Toll Free: 1-866-406-7447

North Asia Sales Trading Alex TSUN

alextsun@kimeng.com.hk

Tel: (852) 2268 0228

US Toll Free: 1 877 837 7635

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