Singapore Property Outlook 2H2012

7/31/2019 Singapore Property Outlook 2H2012

1/11SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Sector Update 19 June 2012Singapore

Co. Reg No: 198700034EMICA (P) : 099/03/2012

Singapore Property

Residential Sector on the CuspStrong supply, but waning demand? Last week, the Singapore

government announced that it will continue to provide enough land

under the 2H12 Government Land Sales (GLS) Programme for

potentially 14,200 new homes. This was followed by URAs release of

new home sales statistics for the month of May, which revealed that

new home sales (excluding ECs) declined by 32% MoM to 1,702 units,

snapping a three-month streak in which sales exceeded 2,000 units per

month. We see this as supportive of our expectations for a soft-landing

in the residential sector.

Addressing the supply-side of the equation. Under the 2H12 GLS

Programme, there will be 12 residential sites on the Confirmed List

(comprising six EC sites) potentially yielding 7,100 units. On the

Reserve List, there are 14 residential sites (no EC sites) which could

yield another 7,100 units. In maintaining a similar residential pipeline as

in 1H12, we surmise that the government believes developers demand

for land has not waned, and hopes to provide ample supply to prevent

runaway land costs and indirectly keeping property prices down.

But developers are getting picky. While the GLS offers developers a

buffet spread, developers have also been very selective, with the

smaller developers seemingly more active in the tenders. Based on the

tenders closed thus far this year, the most recent three have only

attracted five bids each, even though pricing still appears fairly

optimistic. Looking ahead, we expect fiercer competition only for the

more centrally located sites. However, the suburban sites couldcontinue to draw bids from the smaller developers.

Slower new sales in May. The 1,702 new homes sold in May might

have been the lowest monthly sale this year, but to put things in

perspective, it is still higher than the monthly average of 1,364 units for

the whole of 2011. Flo Residence at Punggol was the best-seller, with

266 units (or 79% of the units launched) sold. The only EC launched in

May was One Canberra at Yishun, where only 31% of the 665 units

have been sold. The luxury end extended its leaden pace, with only ten

transactions above SGD3,000 psf reported. One unit at Scotts Square

achieved the highest psf price for the month at SGD4,566 psf.

Not ruling out additional measures yet. We do not think the salesvolume decline in May is sufficient for us to rule out any further

government intervention. Firstly, the 1,702 units sold in May (or 2,057

units including ECs) is not a paltry number in its own right, suggesting

that demand is still robust. Secondly, the URAs flash estimate of the

Property Price Index will be announced on 2 July, and may yet surprise

on the upside. Last but not least, we still expect some form of regulation

tightening over the design of shoebox developments.

Too early to turn positive on domestic developers. We reaffirm ourpreference for the non-residential developers like CapitaMalls Asia, andthe more diversified plays like CapitaLand and Keppel Land.

Wilson [email protected](65) 6432 1454


2/1119 June 2012 Page 2 of 11

Singapore Property | 2H12 GLS Update

A Look at the Supply-side

Keeping up the supply momentum. Under the 2H12 GLS

Programme, there will be 12 residential sites on the Confirmed List(comprising six EC sites) potentially yielding 7,100 units. On the

Reserve List, there are 14 residential sites (no EC sites) which could

yield another 7,100 units.

Therefore, there appears to be no let-up in the governments resolve in

ensuring ample supply in the residential pipeline. With the potential

supply of ~14,000 units roughly unchanged, we surmise that the

government believes developers demand for land has not waned, and

hopes to provide ample supply to prevent runaway land costs and

indirectly keeping property prices down.

Will developers bite? While the GLS offers developers a buffet

spread, developers have also been very selective, with the smaller

developers seemingly more active in the tenders.

Figure 3 shows a summary of the residential tenders closed thus far

this year. Evidently, the most recent three tenders have only attractedfive bids each, even though pricing still appears fairly optimistic.

Looking ahead, we expect fiercer competition only for the more

centrally located sites, such as the 1.2ha site at Commonwealth

Avenue, or the 1.1ha site at Bishan, next to CapitaLands Sky Habitat.

However, the suburban sites could continue to draw bids from the

smaller developers.

Fig 1: Tenders of residential sites closed in 1H12

Month of tender close Location of site No. of bids Winning tenderer

Jun-12 Buangkok Drive 5 CDL

Jun-12 Pasir Ris Dr 3 5 Capital Development Pte Ltd

May-12 Sengkang Square 5 EL Development

May-12 Boon Lay Way 12 MCL Land

May-12 Tampines Ave 10 3 FEO, Frasers Centrepoint, Sekisui House

Apr-12 Elias Road 9 Elitist Development

Mar-12 Hillview Ave 7 Kingsford Development

Feb-12 Bedok South Ave 3 7 FEO, Frasers Centrepoint, Sekisui House

Feb-12 Jervois Road 17 Singapore Land Ltd

Jan-12 Simon Road 11 Hoi Hup, Sunway

Jan-12 Mount Vernon Road 5 CDL, Hong Leong, TID

Jan-12 Jalan Lempeng 8 IOI CorpSource: URA, HDB


3/1119 June 2012 Page 3 of 11


Demand still appears robust

New sales declined in May. The URAs figures revealed that new

home sales (excluding Executive Condominiums) declined by 32%

MoM to 1,702 units, snapping a three-month streak in which sales

exceeded 2,000 units per month. To put things in perspective,

notwithstanding the MoM decline, the figure for May is still higher thanthe monthly average of 1,364 units for the whole of 2011. Including

ECs, the monthly sales figure would have shown a 23% decline to

2,057 units - still higher than the monthly average of 1,607 in 2011.

Mass market demand reigns on. Projects in the Outside Central

Region, which are typically mass market projects, continue to underpin

new sales, accounting for 76% of all sales including ECs, and 71%

excluding ECs.

Flo Residence at Punggol, jointly developed by ZACD and Capital

Development, was the best-seller with 266 units (or 79% of the units

launched) sold. The only EC launched in May was One Canberra at

Yishun, where only 31% of the 665 units have been sold. The luxuryend extended its leaden pace, with only ten transactions recording

prices above SGD3,000 psf. A single unit sold at Scotts Square

achieved the highest psf price for the month at SGD4,566 psf.

Fig 2: New launches in May 2012

Project Name DeveloperProperty

Type Locality

TotalNumberof Units

in Project

UnitsLaunched

in theMonth

UnitsSold in

theMonth

MedianPrice

Take-uprate

Flo Residence ZACD Investments andCapital Development

Non-Landed

OCR 530 338 266 863 79%

1 Canberra MCC Land ExecCondo

OCR 665 665 209 711 31%

Eight Riversuites United Engineers Strata-Landed /

Non-Landed

RCR 862 862 192 1,340 22%

Vibes@UpperSerangoon

Oxley Holdings Non-Landed

OCR 60 60 44 1,298 73%

Stellar RV Alliance Land Pte Ltd Non-Landed

CCR 120 57 17 2,039 30%

Up@Robertson Quay CDL Non-Landed

CCR 70 20 13 2,474 65%

Urban Heritage ECG Group Non-Landed

RCR 15 15 12 1,504 80%

Shiro Precise Development PteLtd

Non-Landed

OCR 16 16 8 1,194 50%

The ShorelineResidences II

Goodland Homes Pte Ltd Landed OCR 10 10 4 1,466 40%

Source: URA

Some indication of buyers fatigue. Take-up rates at some of the new

launches appeared below par. The 862-unit Eight Riversuites atBendemeer, developed by United Engineers, reported sales of 192units at a median price of SGD1,340 psf, for a take-up rate of 22%. Thiswas slightly lower than the over 200 units reported by local media inearly May.

In addition, the take-up rate at One Canberra at 31% is not tooencouraging. This is despite the fact that the government has raised thesecond-timer allocation to 30% of the units in March, and that theDeferred Payment Scheme is still allowable for EC projects.


4/1119 June 2012 Page 4 of 11

Singapore Property | 2H12 GLS UpdateLow-cost funding supports demand. In our view, underlying demandespecially for the better-located mass market projects will continue tobe supported by the low interest rate environment. Maybanks FX Teamprojects the 3-month SOR (Swap Offer Rate) to remain low at between0.4% and 0.6%, and given that the Singapore dollar is expected toremain strong and the Fed Funds Rate to remain low into early 2014,

the conditions are likely to remain benign for borrowers.

Watching the macro numbers closely. Ultimately, we believe thathome-buying sentiment in Singapore is largely driven by job securityand economic confidence. Based on the Ministry of Manpowers latestLabour Report, overall unemployment rose marginally in March 2012 to2.1% from 2.0% in Dec 2011. While this remains significantly below the3.3% overall unemployment in Sep 2009, it is imperative to watch thenumbers closely, especially when employment creation is moderatingand job openings declining, against the backdrop of lingering globalgrowth worries.

Fig 3: Singapores unemployment rate (seasonally adjusted) versus the URA Property Price Index (RHS)

Source: Ministry of Manpower, URA


5/1119 June 2012 Page 5 of 11

Singapore Property | 2H12 GLS UpdateBuild-up of unsold stock. Based on the figures for May, there are atotal of 81,561 units (including ECs) from the confirmed projects in thepipeline, of which 19,794 units (or 24%) remain unsold. Morespecifically, the URA estimates that there are a total 38,000 new andunsold residential units in the pipeline already with planning approvals.Including the 7,100 potential units from the 2H12 GLS Programme, we

are looking at ~45,000 units in the pipeline, which is more than the~37,000 new homes sold in 2010 and 2011 added together.

More measures possible, in some way, shape or form

Not ruling out additional measures yet. We see three possible fronts

which may trigger further government intervention, namely monthly

sales volume remain relatively elevated, sale prices have shown few

signs of correction, and the shoebox phenomenon needs to be

addressed.

Timely reminders required. To a certain extent, the various rounds of

cooling measures introduced by the government serve as timely

reminders to home-buyers and investors that the global economy

remains fragile and that the property market is notoriously cyclical. As

previously mentioned, the 1,702 new homes (excluding ECs) sold in

May is still a relatively elevated figure annualizing that would translate

to 20,400 units per year, which far exceeds any previous year sales.

Cues from the Property Price Index. Secondly, the URAs flash

estimate of the Property Price Index will be announced on 2 July, and

may yet surprise on the upside. This is on the back of benchmark

pricings achieved by projects such as Sky Habit @ Bishan by

CapitaLand, and Katong Regency at Tanjong Katong by UOL. If there is

another significant rise in the index, it may trigger more measures such

as even higher Loan-to-Value ratios for second and subsequent

properties, or higher property tax for units deemed as investment

properties.

Staving off a shoebox bubble. There is unlikely to be an immediate

conclusion to the ongoing debate about shoebox units, defined here

as units smaller than 51 sqm or 550 sq ft. Clearly, the Ministry of

National Development has already highlighted that it is monitoring the

phenomenon of rising number of such units in the suburban areas,

where demand for such units is still fairly untested. However, it may be

prudent for the government to tighten regulation on this front, by

restricting the minimum size of such units, and limiting the proportion of

such numbers within projects located in the suburban areas.

Maintaining our soft-landing outlook. Barring another economiccatastrophe, we think that the combination of unsold inventory build-up,buyers fatigue and continued policy risks still point to a soft-landing forprivate residential property prices, which we expect to decline by 10%over the next 18 months. Therefore, we reassert CapitaMalls Asia(CMA SP; TP $2.01) as our top pick for its non-residential exposure,followed by the diversified players CapitaLand (CAPL SP; TP $4.00)and Keppel Land (KPLD SP; TP $3.65). Maintain HOLD on thedevelopers with purer domestic exposures, namely City DevelopmentsLimited (CIT SP; TP $9.45), Wing Tai Holdings (WINGT SP; TP $1.40),Ho Bee (HOBEE SP; TP$1.19) and SC Global (SCGD SP; TP$1.11).


6/1119 June 2012 Page 6 of 11


Fig 3: 2H12 Government Land Sales (Confirmed List)

EstimatedCommercialSpace

S/N Location SiteArea(ha)

ProposedGPR

EstimatedNo. ofHousingUnits

(1)(2)

EstimatedNo. ofHotelRooms

(1)(2)

(m2)(2)

EstimatedLaunchDate

SalesAgent

Residential Sites1 Punggol Way/Punggol Walk (EC) 1.87 3 560 0 0 HDB2 Dairy Farm Road 1.76 2.1 390 0 0

Jul-12URA

3Woodlands Avenue 6 / WoodlandsDrive 16 (EC)

(3)1.66 2.8 465 0 0 HDB

4 New Upper Changi Road / BedokRoad (Parcel A) 3.2 1.6 540 0 0

Aug-12

URA5

Sengkang West Way / Fernvale Link(Parcel B) (EC)

(3) 1.4 3 420 0 0 HDB

6Pasir Ris Drive 3 / Pasir Ris Rise (EC)

(3) 2.8 2.1 590 0 0

Sep-12

HDB7 Bishan Street 14 1.12 4.9 645 0 0 HDB8

Sembawang Crescent / SembawangDrive (EC)

(3)2.32 2.8 650 0 0 HDB

9Punggol Field Walk / Punggol East(EC)

(3)1.45 3 435 0 0

Oct-12

HDB10

Ang Mo Kio Avenue 2 / Ang Mo KioStreet 13

(3)1.84 3.5 680 0 0 URA

11Jurong West Street 41 / Boon LayWay (Parcel A)

(3)2.24 3.5 825 0 0

Nov-12

URA

12 Commonwealth Avenue(3)

1.21 4.9 700 0 0 Dec-12 HDB

Commercial & Residential Sites

13Yishun Ring Road / Yishun Avenue 9(3)

0.9 2.8 160 0 10,080 Nov-12 HDB

Commercial Sites

14 Punggol Point(4)

1.16 - 0 0 3,000 URA

15 Venture Avenue (Jurong Gateway)(3)

1.2 5.6 0 0 67,200 Dec-12 URA

Total (Confirmed List) 7,060 0 80,280

Source: URA


7/1119 June 2012 Page 7 of 11


Fig 4: 2H12 Government Land Sales (Reserve List)EstimatedCommercialSpace

S/N Location Site Area(ha)

ProposedGPR

EstimatedNo. ofHousingUnits

(1)(2)

EstimatedNo. ofHotelRooms

(1)(2)

(m2)(2)

EstimatedAvailableDate

(5)

SalesAgent

Residential Sites

1 Jalan Jurong Kechil 1.02 1.4 240 0 0 URA2 Stirling Road 2.11 4.2 1,045 0 0 URA3 Alexandra View

(Parcel A) 0.84 4.9 485 0 0 URA4 Farrer Road /

Lutheran Road 0.27 1.4 40 0 0 URA5 Kim Tian Road 1.1 4 500 0 0 URA6 Tai Thong Crescent

(Parcel C) 0.82 3.5 265 0 2,000 URA7 Prince Charles

Crescent 2.38 2.1 590 0 0 URA8 Tampines Avenue 10

(Parcel B) 1.71 2.8 505 0 0 URA9 Sengkang West Way

(Parcel A) 1.66 3 525 0 0

AlreadyAvailable

HDB10 Alexandra Road /

Alexandra View(Parcel B)

(3) 0.86 4.9 495 0 0 Sep-12 URA

11Tampines Avenue 10(Parcel C)

(3) 2.3 2.8 680 0 0 URA

12Tampines Avenue 10(Parcel D)

(3) 1.6 2.8 470 0 0

Oct-12

URA13 Jurong West Street

41 / Boon Lay Way(Parcel B)

(3)1.87 3.5 690 0 0 Nov-12 URA

14 New Upper ChangiRoad / Bedok SouthAvenue 3 (Parcel B)(3)

2.69 2.1 595 0 0 Dec-12 URA

Commercial Sites

15 Sims Avenue /Tanjong Katong Road 2.07 4.2 0 0 86,940

AlreadyAvailable URA

16 Cecil Street / TelokAyer Street

(3)0.78 12.88 0 0 77,380 Dec-12 URA

White Sites(6)

17 Marina View / UnionStreet 0.78 13 0 0 101,400 URA

18 Thomson Road /Irrawaddy Road 0.66 4.2 0 240 19,400

AlreadyAvailable

URA

Hotel Sites

19 Victoria Street / JalanSultan 0.84 4.5 0 745 4,590 URA

20 Sturdee Road 0.61 3 0 445 2,750 URA21 Race Course Road /

Perumal Road 0.39 3.5 0 330 2,050 URA

22 Jurong Town HallRoad 1 2.1 0 510 3,150

AlreadyAvailable

URA23 East Coast Road 0.82 3 0 600 3,690 Jun-12 URA24 Victoria Street / Ophir

Road(3)

0.77 4.2 0 785 4,850 Nov-12 URATotal for Reserve List 7,125 3,655 308,200

(1)The estimated number of hotel rooms and dwelling units for some sites carried forward from 1H2012 Reserve List have been updated to

take into account revisions to site areas.(2)

The actual number of housing units, hotel rooms and commercial space could be different from the estimated quantum depending on theactual plans of the developers in terms of mix of uses and the size of the housing units and hotel rooms.

(3)New sites introduced in 2H2012.

Source: URA


8/1119 June 2012 Page 8 of 11


RESEARCH OFFICESREGIONAL

PKBASURegional Head, Research & Economics(65) 6432 1821 [email protected]

WONG Chew Hann, CAActing Regional Head of Institutional Research(603) 2297 8686 [email protected]

THAM Mun HonRegional Strategist(852) 2268 0630 [email protected]

ONG Seng YeowRegional Products & Planning(852) 2268 0644 [email protected]

ECONOMICSSuhaimi ILIASChief Economist Singapore | Malaysia(603) 2297 8682 [email protected]

Luz LORENZOEconomist Philippines | Indonesia

(63) 2 849 8836 [email protected]

MALAYSIAWONG Chew Hann, CAHead of Research(603) 2297 8686 [email protected] Strategy Construction & InfrastructureDesmond CHNG, ACA(603) 2297 8680 [email protected] Banking - RegionalLIAW Thong Jung(603) 2297 8688 [email protected] Oil & Gas Automotive ShippingONG Chee Ting(603) 2297 8678 [email protected] PlantationsMohshin AZIZ(603) 2297 8692 [email protected] Aviation Petrochem PowerYIN Shao Yang, CPA(603) 2297 8916 [email protected] Gaming Regional Media PowerWONG Wei Sum, CFA(603) 2297 8679 [email protected] Property & REITsLEE Yen Ling(603) 2297 8691 [email protected] Building Materials Manufacturing Technology

LEE Cheng Hooi Head of [email protected] Technicals

HONG KONG / CHINAEdward FUNGHead of Research(852) 2268 0632 [email protected] ConstructionIvan CHEUNG(852) 2268 0634 [email protected]

Property IndustrialIvan LI(852) 2268 0641 [email protected] Banking & FinanceJacqueline KO(852) 2268 0633 [email protected] Consumer StaplesAndy POON(852) 2268 0645 [email protected] Telecom & equipmentSamantha KWONG(852) 2268 0640 [email protected] Consumer DiscretionariesAlex YEUNG(852) 2268 0636 [email protected] IndustrialCatherine CHAN(852) 2268 0631 [email protected] CementAnita HWANG, CFA | Jacky WONG, [email protected] | [email protected](852) 2268 0142 | (852) 2268 0107 Special Situations Quants

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SINGAPOREStephanie WONGHead of Research(65) 6432 1451 [email protected] Strategy Small & Mid CapsGregory YAP(65) 6432 1450 [email protected] Technology & Manufacturing Telcos - RegionalWilson LIEW(65) 6432 1454 [email protected] Hotel & Resort Property & ConstructionJames KOH(65) 6432 1431 [email protected] Logistics Resources Consumer Small & Mid CapsYEAK Chee Keong, CFA(65) 6433 5730 [email protected] Healthcare Offshore & MarineAlison FOK(65) 6433 5745 [email protected] Services S-chipsBernard CHIN(65) 6433 5726 [email protected] Transport (Land, Shipping & Aviation)ONG Kian Lin(65) 6432 1470 [email protected] REITs / PropertyWei Bin(65) 6432 1455 [email protected] S-chips Small & Mid Caps

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PHILIPPINESLuz LORENZOHead of Research+63 2 849 8836 [email protected] StrategyLaura DY-LIACCO(63) 2 849 8840 [email protected] Utilities Conglomerates TelcosLovell SARREAL(63) 2 849 8841 l [email protected] Consumer Media Cement MiningKenneth NERECINA(63) 2 849 8839 k [email protected] Conglomerates Property Ports/ LogisticsKatherine TAN(63) 2 849 8843 [email protected] Banks Construction

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9/1119 June 2012 Page 9 of 11

Singapore Property | 2H12 GLS UpdateAPPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES

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This document is being distributed by Maybank Kim Eng Securities (London) Ltd (Maybank KESL) which is authorized and regulated, by the FinancialServices Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the FinancialServices 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 anyresponsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered asconstituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax adv isers.


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Singapore Property | 2H12 GLS UpdateDISCLOSURESLegal Entities Disclosures

Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of BursaMalaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issuedand distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT KimEng 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 andExchange Commission.Philippines:MATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securitiesand Exchange Commission. Vietnam: Kim Eng Vietnam Securities Company (KEVS) (License Number: 71/UBCK-GP) is licensed under the

StateSecuritiesCommission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: KimEng Securities India Private Limited (KESI) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the BombayStock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1Merchant 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.

Disclosure of InterestMalaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further actas market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment bankingservices, advisory and other services for or relating to those companies.

Singapore: As of 19 June 2012, Maybank KERPL does not have any interest in any companies recommended in this research report. The covering analyst hasan interest in CapitaMalls Asia.

Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in theresearch report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connectedparties 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 Paragraph16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.

As of 19 June 2012, 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 inissues 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 investmentservices in relation to the investment concerned or a related investment.

OTHERSAnalyst Certification of Independence

The views expressed in this research report accurately reflect the analysts personal views about any and all of the subject securities or issuers; and no part ofthe research analysts 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 capableof understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and politicalfactors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of anyissuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its ownprofessional 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.

Stephanie Wong | CEO, Maybank Kim Eng Research

Definition of Ratings

Maybank Kim Eng Research uses the following rating system:

BUY Total return is expected to be above 15% in the next 12 months

HOLD Total return is expected to be between -15% to +15% in the next 12 months

SELL Total return is expected to be below -15% 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 Ratio

Capex = 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


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MalaysiaMaybank Investment Bank Berhad(A Participating Organisation ofBursa Malaysia Securities Berhad)33rd Floor, Menara Maybank,100 Jalan Tun Perak,50050 Kuala LumpurTel: (603) 2059 1888;Fax: (603) 2078 4194

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IndiaKim Eng Securities India Pvt Ltd2nd Floor, The International 16,Maharishi Karve Road,Churchgate Station,Mumbai City - 400 020, India

Tel: (91).22.6623.2600Fax: (91).22.6623.2604

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Ayala Triangle, Ayala Avenue

Makati City, Philippines 1200

Tel: (63) 2 849 8888Fax: (63) 2 848 5738

ThailandMaybank Kim Eng Securities(Thailand) Public CompanyLimited999/9 The Offices at Central World,

20th

- 21st

Floor,Rama 1 Road Pathumwan,Bangkok 10330, Thailand

Tel: (66) 2 658 6817 (sales)Tel: (66) 2 658 6801 (research)

VietnamIn association with

Kim Eng Vietnam SecuritiesCompany1st Floor, 255 Tran Hung Dao St.District 1Ho Chi Minh City, Vietnam

Tel : (84) 838 38 66 36Fax : (84) 838 38 66 39

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Anfaal CapitalVilla 47, Tujjar JeddahPrince Mohammed bin AbdulazizStreet P.O. Box 126575Jeddah 21352

Tel: (966) 2 6068686Fax: (966) 26068787

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North Asia Sales TradingEddie [email protected]: (852) 2268 0800US Toll Free: 1 866 598 2267

www.maybank-ke.com | www.kimengresearch.com.sg

Singapore Property Outlook 2H2012

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