REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 24 September 2014

▌What’s on the Table…

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Construction - Tracking Budget expectations

Our checks with several contractors on their expectations for the Budget 2015 announcement next month suggest that government spending on key infrastructure segments like rural roads, water, environment and government facilities should continue to be the key features. We also expect more clarity on outstanding highway projects. An increase in the total value of government-funded jobs in the pipeline vs. 2014's RM8.8bn compiled figure is likely, which could be relevant to smaller cap contractors. MRCB (Add), AZRB (NR), Salcon (NR) and Puncak Niaga (Add) are likely beneficiaries. Maintain Overweight, with job flows as potential catalysts. Gamuda is our top pick for the big caps, and Muhibbah Engineering for the smaller caps.

▌News of the Day…

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• Automotive industry to be developed in the Kulim Hi-Tech Park

• Businesses feel the pinch from new toll rates to Singapore

• Tenaga Nasional and Powertek to implement Bangladesh power project

• MRCB shortlisted for Kepong incinerator project

• MAHB to decide on purchase of 40% of ISG by 30 September

• About 50-70% of property buyers failed to get bank loans this year

• Petronas to implement Enhanced Oil Recovery programmes

• Protasco files legal suit against Indonesian-based PT Anglo Slavic Utama

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,700

1,750

1,800

1,850

1,900

Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14

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FBMKLCI

1840.19 -5.86pts -0.32%Sep Futures Oct Futures

1832 - (-0.19% ) 1833 - (1.00% )———————————————————————————

Gainers Losers Unchanged284 527 330

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Turnover2357.42m shares / RM2235.994m

3m avg volume traded 2601.14m shares

3m avg value traded RM2195.33m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,840 3,298 5,188 1,590 23,837 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,840.19 (0.3) (1.4)

FBM100 12,459.85 (0.3) (1.0)

FBMSC 18,636.40 (0.4) 18.7

FBMMES 7,386.79 1.2 30.1

Dow Jones 17,055.87 (0.7) 2.9

NASDAQ 4,508.69 (0.4) 8.0

FSSTI 3,298.09 0.0 4.1

FTSE-100 6,676.08 (1.4) (1.1)

SENSEX 26,775.69 (1.6) 26.5

Hang Seng 23,837.07 (0.5) 2.3

JCI 5,188.11 (0.6) 21.4

KOSPI 2,028.91 (0.5) 0.9

Nikkei 225 16,205.90 (0.7) (0.5)

PCOMP 7,271.62 (0.1) 23.5

SET 1,590.13 0.0 22.4

Shanghai 2,309.72 0.9 9.2

Taiwan 9,084.90 (0.5) 5.5————————————————————————————————

Close % chg Vol. (m)

NI HSIN 0.510 12.1 61.4

FOCUS 0.125 4.2 59.3

DUTALAND 0.745 (3.9) 57.7

IRIS CORP 0.410 (2.4) 54.9

TMC LIFE 0.625 12.6 47.8

NEXGRAM 0.140 0.0 46.6

SUMATEC 0.405 (2.4) 40.1

PASUKHAS 0.335 (6.9) 37.0————————————————————————————————

Close % chg

US$/Euro 1.2850 0.02

RM/US$ (Spot) 3.2442 (0.02)

RM/US$ (12-mth NDF) 3.3218 (0.11)

OPR (% ) 3.25 1.56

BLR (% , CIMB Bank) 6.85 0.00

GOLD ( US$/oz) 1,223.14 (0.02)

WTI crude oil US spot (US$/barrel) 92.56 1.14

CPO spot price (RM/tonne) 2,109.00 1.10

Market Indices

Top Actives

Economic Statistics

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

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Daybreak│Malaysia

September 24, 2014

2

Global Economic News

Global commerce is set to expand by 3.1% this year, the World Trade Organisation (WTO) said, cutting its previous forecast of 4.6% due to weak growth and demand. 2015 forecast was also downgraded to 4.0% from 5.3%. (AFP).

US Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said policy makers should improve communications by saying how long they expect it will take for price increases to reach their target level.

He also said the Fed should detail how financial stability concerns affect policy and can keep stimulating the US economy because inflation is posing little threat. (Bloomberg, Reuters)

The US central bank needs to change the way it communicates its view on the future path of interest rates, St. Louis Federal Reserve President James Bullard said.

He also said the central bank may need to drop its pledge next month to keep interest rates low as so-called quantitative easing is brought to a close. (Reuters, Bloomberg)

The US flash manufacturing purchasing managers index (PMI) by Markit came in at 57.9 in Sep, unchanged from Aug, which marked a 52-month high. (WSJ)

US home prices climbed a seasonally adjusted 0.1% mom in Jul (+0.3% mom in Jun), the Federal Housing Finance Agency (FHFA) said. (Bloomberg)

The US Richmond Federal Reserve Manufacturing Index came in at +14 in Sep (+12 in Aug). (Bloomberg)

Eurozone’s Markit Composite Purchasing Managers Index (PMI) fell to a nine-month low of 52.3 in Sep (52.5 in Aug). Services Sector PMI fell to 52.8 in Sep (53.1 in Aug), with the Manufacturing PMI fell to 50.5 (50.7 in Jul). (Bloomberg)

European Central Bank (ECB) Governing Council member Ignazio Visco said the euro area economy may return to pre-crisis levels late next year, but the impact on higher unemployment and lower investment is likely to last beyond the current cycle.

He added that it “is particularly worrisome for countries with high public debts, whose sustainability requires a return to steady economic growth, and which may also suffer, as is presently the case in the euro area, from excessive disinflation." (Reuters)

China’s HSBC preliminary manufacturing purchasing managers index (PMI) hit a two-month high of 50.5 in Sep (50.2 in Aug). (AFP)

South Korea's national debt neared KRW490tr (US$470.8bn) in 2013 as the government increased borrowing to make up for its deficit, a government report showed.

Daybreak│Malaysia

September 24, 2014

3

Debt owed by the central and provincial governments came to KRW489.8tr in 2013, up KRW46.6tr from a year earlier. The debt represents 34.3% of GDP. (Yonhap)

Taiwan's industrial production 7.03% yoy in Aug (+6.15% yoy in Jul). (RTT)

Singapore’s consumer price index (CPI) rose 0.9% yoy in Aug (+1.2% yoy in Jul). (CNA)

Indonesia's government has given a permit to the local unit of US mining company Newmont Mining Corp. to export a total of 350,000 metric tons of copper concentrate within three years, a government official said. (WSJ)

The Indonesian government is expected to issue more regulations on the mining sector in order to complete its value-added policy, according to R. Sukhyar, director general for coal and mineral resources at the Ministry of Energy and Mineral Resources. (Jakarta Globe)

A fuel price rise in Indonesia may help economic growth next year if the savings from subsidies are redirected into infrastructure, Bank Indonesia (BI) said.

If the fuel price is increased by IDR3,000 per litre, GDP could gain by 0.15% pt next year, BI said, although it would also bump up inflation by an additional 3.16% pt– a level far above the central bank’s forecast range. (Jakarta Globe)

Thailand's share in the international rice market will drop further in the next 10 years if the plantation system is not altered to lower the production cost, said the University of Thai Chamber of Commerce (UTCC).

UTCC’s Foreign Trade Study Department Director Att Pisanwanich estimated that at the current cost, the export value would drop by THB87bn in the next decade or THB8.7bn per year. (The Nation)

Philippines’ government debt stood at PHP4.49tr or 38.1% of GDP as of 1Q14 (38.5% of GDP recorded in 1Q13). (Philippines Star)

Malaysian Economic News

Minister of Plantation Industries and Commodities Datuk Amar Douglas Uggah Embas has urged timber industry players to comply with all market requirements to ensure continued export and market opportunities. He said the ministry on the other hand would continue to intensify efforts to address concerns on legally harvested timber and timber products.

Currently, he said there are many issues and challenges faced by the timber sector, including legality of timber products, rising production costs, uncertainties in supply of raw materials and labour-related issues. The industry needs to be resourceful in exploring new products such as Glulam or glued laminated timber, bio-composite products and utilisation of oil palm-based material as these are alternative products.

Daybreak│Malaysia

September 24, 2014

4

The timber industry contributed 0.7% to the national gross domestic product (GDP) in 2013 valued at RM5.7bn, while exports amounted to RM19bn. (Bernama)

Universiti Kuala Lumpur's (UniKL) Kulim campus, Universiti Malaysia Perlis (UniMAP) and Kulim Technology Park Corp (KTPC) will work together with a UK university to develop an automotive industry in the Kulim Hi-Tech Park here soon.

Kedah Science, Innovative, Information Technology, Communication and High Technology Committee chairman, Norsabrina Mohd Noor, said it was the right time for the hi-tech park, an integrated high-tech area, to have an automotive industry.

"We have received the agreement from the UK university to cooperate. The terms are still being worked out and we hope that with the capabilities of UniKL, UniMAP and the Advanced Technology Training Centre, the deal can be sealed," he said. (Bernama)

Constant connectivity and digital media have enabled Malaysia to leap-frog to be one of the most socially engaged markets in the world, according to findings from TNS, a global market research and information company.

The findings from the TNS' Connected Life study released posited that over three fifths or 62% of internet users in Malaysia accessed social media networks daily compared with 42% globally.

It said 52% of Malaysian internet users used instant messaging everyday, 35% reached for their mobile phones even before they got out of bed, and 34% used their phone in bed before they went to sleep.

The phone usage contributes to the 4.5 hours of leisure time Malaysian internet users spend online every day. TNS found that email was still an important channel with over 58% sending personal emails on a daily basis. (Bernama)

The Malaysian general insurance industry's gross written premium rose 6.4% yoy in the first six months of 2014 to RM8.9bn from RM8.3bn in the same period last year. It said the largest insurance class, motor insurance, saw an increase of 8.3% in gross written premium, while liabilities and medical or health insurance recorded impressive gains of 13.9% and 10.9% respectively. "Fire or property insurance grew 4.2% while personal accident increased 4%," the association said. (Bernama)

Although the Islamic banking share of Malaysia's banking sector has grown from 6% in 2000 to 25% this year, the industry needs to take more meaningful steps to benefit the poor, says an academic.

"The issue now is people are saying Islamic banking is costly and does not really help low-income groups, and what has not been stressed is how the poor can get Islamic banking products," Universiti Sains Islam Malaysia (USIM) Economics and Muamalat Faculty Dean Assoc. Prof. Dr. Amir Shaharuddin said.

He said many wakaf funds and parcels of wakaf land in Malaysia are not effectively managed, and the full potential of wakaf assets has yet to be realised. The situation could improve with more professional management, he said, citing the substantially higher zakat collection now with better management. (Bernama)

Daybreak│Malaysia

September 24, 2014

5

The international reserves of Bank Negara Malaysia (BNM) amounted to RM422.3bn (equivalent to US$131.5bn) as at Sept 15, 2014. The reserves position was sufficient to finance 8.9 months of retained imports and is 1.2 times the short-term external debt, BNM said in a statement today. (Bernama)

Technology Park Malaysia Corp Sdn Bhd (TPM) hopes to fully develop Malaysia's own robotic technology to cater to the increasing demand domestically as well as globally. General manager of TPM Centre for Technology Commercialisation, Dr Mohamad Zaihirain Mohamed Rasin, said currently the country imported most of its robotic technology. "The outlook for the local robotics industry is certainly bright given the need for automation by local manufacturers," he said. (Bernama)

The financial services industry needs to formulate conducive policies for Intellectual Property (IP) to be accepted as a security instrument, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek said. He said this would facilitate IP-based business and transactions, apart from spurring the development of an innovative ecosystem.

"Malaysia's transformational agenda with the view of becoming a high-income nation by 2020 has included intellectual property as a crucial area to be further strengthened and promoted. "Notably, the rise in value of intellectual capital and intangible assets are among the factors that move IP from the sideline to the centre (stage) of the economy," he said. Hasan said the industries must be aware that other countries were also leveraging on IP monetisation and IP as a form of security. (Bernama)

The Malaysia External Trade Development Corporation (Matrade) is focusing on promoting high-value Malaysian products in international markets, says its chairman Datuk Noraini Ahmad. The focus is no longer on traditional industries like furniture, food and resource-based products but on products from the electrical and electronics, oil and gas, green technology and building services and engineering sectors, she said.

Noraini said besides running coaching programmes for Bumiputera, women and youth entrepreneurs, Matrade also has several new initiatives to develop the export competency of Malaysian exporters.

She cited the Go-Ex programme, which aims to assist 1,400 companies become export-ready in five years, and the Mid-Tier Companies Development Programme, which targets to develop and nurture 50 high-potential mid-tier companies each year until 2020.

Meanwhile, its e-Trade programme, an initiative under Digital Malaysia to accelerate exports by small and medium enterprises (SMEs) through the e-commerce platform and enhance their global presence, targets 2,625 SMEs this year, she said. (Bernama)

The Construction Industry Development Board (CIDB) is collaborating with US-based International Human Resources Development Corporation (IHRDC) to offer international certification in enhancing skills and knowledge of local construction skilled workforce and related agencies. The international certification, E-Training and Knowledge Solution, would be a requirement for construction personnel to apply for the mandatory Construction Personnel Registration Card or better known as CIDB Green Card, said Works Minister Datuk Fadillah Yusof.

"We are not only talking about the construction industry, but we are talking about the ministry. "For example, Public Works Department, we are the management agency of all government projects. We want to train our own people to make sure our people are all certified, qualified and competent," he said. (Bernama)

Daybreak│Malaysia

September 24, 2014

6

It has only been over a month since Malaysia introduced the new toll rates and businesses are starting to feel the pinch. Malaysian Small and Medium Enterprise (SME) association chairman Teh Kee Sin said there had been complaints from members that they had suffered a 20% to 30% drop in business, mainly in the logistics, advertising, entertainment, retail sectors and those involved in the hairstyling business.

“The full extent of the situation will be known after Singapore also increases its toll rates beginning Oct 1,” he said, adding that this would have a snowball effect on all businesses in Johor. He added that the SMEs were appealing to leaders in Singapore and Malaysia to sit down and resolve this issue.

“The impact is already being felt. I used to charter private cars to and from Changi airport, which cost me RM200. Now the price has doubled,” Teh told reporters at a press conference here yesterday. (The Star)

Political News

New Selangor Mentri Besar Azmin Ali has denied that he will be "remote controlled" by PKR adviser Datuk Seri Anwar Ibrahim following the party's failed attempt to install president Datuk Seri Dr Wan Azizah Wan Ismail as mentri besar. Azmin said he is now bound to the oath he took before Selangor Sultan Sharafuddin Idris Shah. "I am guided by the constitution and the policies of the people," he said. Azmin also said that it was time to "move on" when asked if Dr Wan Azizah would have been "remote controlled" if she had become mentri besar. Azmin was sworn in as the 15th Selangor Mentri Besar at 10.40am, Tuesday. (Star)

The four state executive councillors from PAS in Selangor lashed out at DAP secretary-general Lim Guan Eng for labelling them "traitors" in not resigning when Tan Sri Khalid Ibrahim still held the menteri besar's post after his expulsion from the PKR. State exco member Sallehin Mukhyi, who is also Selangor PAS deputy commissioner I, said Lim's remarks were selfish and ignorant. (Star)

Corporate News

Malaysia and Bangladesh signed a government-to-government Memorandum of Understanding (MoU) for Tenaga Nasional Bhd (TNB) and Powertek Bhd to implement a RM6bn power plant project.

The MoU paves the way for the TNB-Powertek consortium to finance and build a 1,320-megawatt coal-fired power plant in Maheshkhali, Cox's Bazar, Bangladesh with the Bangladesh Power Development Board (BPDB).

The MoU was valid for two years unless extended by mutual agreement or when the parties sign a definitive joint venture (JV) agreement/shareholder agreement in relation to the project development.

The parties will jointly conduct a project feasibility study and come up with proper project development programme. If the parties decided to go ahead with the project, after the completion of feasibility study, they will form a JV company and conduct international tender to appoint the engineering procurement and commission (EPC) contractor for the project.

The TNB-Powertek consortium would provide the technical leadership and coordinate the feasibility study of the project whereas BPDB would provide the land for the project.

The project would be developed on a non-recourse financing basis and the JV company would sign a long-term power purchasing agreement with BPDB as the sole off-taker of power from the project, said the minister.

Daybreak│Malaysia

September 24, 2014

7

On the project's timeline, the feasibility study was expected to take place within six to nine months, tender for EPC contract (3-6 months), completion of project documentation to achieve financial close (9-12 months) and construction would take four years. (Bernama)

Out of the nine proposals that have been submitted to build a casino in the Catskills and Hudson Valley, which is viewed as the most attractive of locations in upstate New York, three are linked to Kien Huat Realty Sdn Bhd, which is the private vehicle of the Genting Lim family.

The Lim family put in one proposal via Nasdaq-listed Empire Resorts Inc, which is 61.47% owned by Kien Huat Realty. It is bidding to build a US$1bn (RM3.2bn) casino in the Sullivan County of the Catskills and Hudson Valley region

The other two proposals were submitted by RW Orange County LLC, a subsidiary of Genting Malaysia Bhd. In the first proposal by RW Orange County, it is looking to develop the US$1.5bn (RM4.8bn) Sterling Forest Resort casino in Tuxedo, Orange County, which is just 56km away from New York. In a second application – also by RW Orange County – Genting is seeking to develop a casino in Montgomery, Orange County, which is under 90 minutes from New York City.

During its hearing, Genting touted its fleet of 10 private jets and ability to bring high rolling baccarat players from Asia to New York as a key aspect of its proposal to open a casino resort at Sterling Forest in Orange County, the New York Daily reported.

There are currently 17 bids from 16 companies vying for four casino licences in three regions – the Catskills and Hudson Valley, the Capital area and the Eastern Southern Tier. The race is most intense in the Catskills and Hudson Valley, with nine bidders vying for the licence. (Starbiz)

Malaysian Resources Corp Bhd (MRCB) has been shortlisted to bid for a 1,000-tonne per day waste-to-energy incinerator project estimated to cost up to RM800m in Taman Beringin, Kepong. CFO Ann Wan Tee said the group was expected to submit its bid to the Government in November. “We are putting our best effort to win the tender. We are ‘fighting’ against other bigger boys as well, let’s see whether we can win it,” he said. “It is going to be a concession. We do not know how long the Government would give the concession but to build the incinerator, it will take three to four years,” said Ann. (StarBiz)

Malaysia Airports Holdings Bhd (MAHB) received its rights on its first refusal to TAV Havalimanlari Holding AS's €285m offer to acquire from Limak and Limak Yatirim their collective 40% equity stakes in Istanbul Sabiha Gokcen Airport (ISG) and LGM on 16 September. The airport operator has 10 business days from the date of receipt of the notice to accept the offer at the price offered by TAV. The board of MAHB is currently considering the offer. (BMSB, Malaysian Reserve)

AirAsia BIG Loyalty Programme, the low cost carrier's loyalty programme, aims to achieve 11.7m memberships this year, with 100,000 new member sign-ups for every month. "For this year, we probably add up to another 600-700k members," Think BIG Digital Sdn Bhd (TBD) CEO Alice Goh Ai Fong said. TBD is a joint venture between AirAsia and Tune Money Sdn Bhd and operates the AirAsia BIG Loyalty Programme. (Malaysian Reserve)

Daybreak│Malaysia

September 24, 2014

8

Major global investors from Qatar and Abu Dhabi are said to be considering pulling billions of ringgit out of two of 1MDB's mega projects, namely the Tun Razak Exchange and Bandar Malaysia, due to the lack of transparency and slow progress. "The lack of transparency in sharing their plans with investors and the public, coupled with slow progress, lack of experience and delays can cause a substantial amount of interest costs to accumulate," a source said. (Financial Daily)

Water tariff in Johor is expected to go up by between 10%-12% in the next few months due to the high cost of treatment. The increase, said state Public Works, Rural and Regional Development Committee chairman Datuk Hasni Mohammad, was unavoidable, adding that this would take place either at the end of the year or early next year.

“We received a proposal from the National Water Services Commission for a 22% increase about a year ago. However, we put this on hold as we were looking at ways on how we could deal with this situation without burdening the consumers, especially with the rising costs of living," he said. Since the last water tariff increase in 2010, Hasni said the rate for electricity had gone up twice.

At present, domestic users in Johor pay 60 sen for the first 20 cubic metres of water, RM1.65 for between 20 and 35 cubic metres of water and RM2.96 for over 35 cubic metres of water. (Star)

The Malaysian general insurance industry posted a steady growth in 1H14, with gross written premiums growing by 6.4% to RM8.98.9bn from RM8.3bn in 1H13. During the period under review, motor insurance saw an increase of 8.3% in gross premiums, with liabilities and medical/health insurance recording impressive gains of 13.9% and 10.9% respectively. Fire or property insurance grew 4.2%, while personal accident rose 4%.General Insurance Association of Malaysia (Piam) chairman Chua Seck Guan said motor insurance business continued to be a key segment for the industry, owing to the increasing numbers of new vehicles being registered. (Starbiz)

The demand for property nationwide is expected to pick up when there is more awareness of the Goods and Services Tax (GST), said Real Estate and Housing Developers’ Association Penang chairman Datuk Jerry Chan. The demand, which has dropped by more than 30% so far this year, is expected to improve from Nov. Chan said the slowdown was due to the Government’s cooling measures and the stringent steps taken by banks and financial institutions. “About 30% to 40% of buyers failed to get loans early this year. This has now increased to between 50% and 70%,” he said. (Star)

House Buyers Association (HBA) suggests that the government raise the stamp duty on the third and subsequent properties to 5% and above to curb excessive speculative activities that are driving up property prices. HBA's Chinese division head, Tan Chong Leng, also urged the government to make it mandatory for property developers to implement the "build then sell" housing delivery system as soon as possible to reduce the risks faced by house buyers. (Sun)

Sona Petroleum Bhd is confident of getting the Securities Commission’s (SC) approval for its first qualifying acquisition to put it on track to complete the deal by the end of the year. The special-purpose acquisition company (SPAC), which had on Aug 29 submitted its proposal for a US$281m (RM895.2m) deal to buy a 40% stake in the Thai unit of UK-listed Salamander Energy Plc to the SC, is expected to know the regulator’s decision by next month. (StarBiz)

Daybreak│Malaysia

September 24, 2014

9

Petronas will roll out its entire enhanced oil recovery (EOR) programme in phases over the next decade to revive flagging production from mature and depleting oil wells, said a director of the national oil company.

The company expected to spend some RM1.1bn in research and development for EOR over the next three to four years, as a substantial number of the current producing oilfields have EOR potential, Datuk Mohamad Idris Mansor told delegates in his speech at the opening of the Malaysia Oil & Gas Services Exhibition and Conference 2014.

More than 10 projects were at various stages of development currently, with the first application of EOR technology now ongoing at the Tapis oilfield, offshore Terengganu.

The large-scale EOR project, developed at a cost of about RM10bn, could boost oil production from Tapis by up to 35,000 barrels per day (bpd) from the present 3,000 to 4,000 bpd, and was targeted to increase the economic value of the field as well as extend its life by more than 25 years, he added. (Star)

Scomi Engineering Bhd expects its maintenance, repair and overhaul (MRO) services to provide a steady source of recurring income to further boost development in the upstream segment. CEO, Kanesan Veluppillai, said the MRO services would generate a sustainable and stable income for the monorail system provider. However, he said, it was too early to determine the contribution from the activities. "We are still at the infant stage (to project the contribution). We have secured a 30-year maintenance services for Brazilian Line 18 project as well as for 40 busses with Melaka state government," he told. (StarBiz)

TMC Life Sciences Bhd, which was among the most-actively traded counters yesterday, said it was unaware of a corporate exercise involving the injection of substantial shareholder Peter Lim Eng Hock's healthcare services assets into TMC. In a filing with Bursa Malaysia, TMC said it did not receive any notification of its major shareholder's plan to park both hospital assets, Tropicana Medical Centre in Petaling Jaya and Thomson Medical Centre in Singapore under TMC. (sun)

Trading in Scientex Bhd shares will be suspended today pending a material announcement, the company said in a filing with Bursa Malaysia yesterday. The announcement is expected to be related to an earlier filing made with Bursa on Aug 8 regarding a strategic alliance agreement signed with Japan-based plastic film manufacturer Futamuara Chemical Co Ltd, according to executives familiar with the company. (Financial Daily)

Aviation company APFT Bhd and Lufthansa Technical Training (LTT) have teamed up to start an aircraft maintenance training school in Malaysia from January 2015. APFT executive chairman Datuk Faruk Othman said the school aimed to train at least 400 students over a five-year period. Faruk said LTT was also looking for an opportunity in Malaysia to set up its MRO (maintenance, repair and overhaul) services.

“Lufthansa already has an MRO hub in the Philippines and is now looking for its second and third hubs in Asia, and Malaysia is one of the markets it is looking at. We believe that this agreement with LTT will benefit not only the students but the aviation industry in the region as well,” he told. (StarBiz)

Daybreak│Malaysia

September 24, 2014

10

The procurement process for the new air traffic control (ATC) management centre to be located at KLIA in Sepang will be open for bidding in 4Q14, Department of Civil Aviation Malaysia (DCA) DG Datuk Azharuddin Abdul Rahman said. He said the procurement proposal for the ATC centre, expected to amount to about RM700m as announced in Budget 2014, is in the final stage of evaluation and will comply with all guidelines set by the government. The said the new ATC management system bidding process, which was previously slated for early this year, had to be rescheduled due to the twin-tragedy of flights MH370 and MH17. (Malaysian Reserve)

Century Logistics Holdings Bhd does not expect a planned collaboration with Felda Global Ventures Holdings Bhd (FGV) to take off despite earlier news that the plantation giant may be buying a big stake in the logistics company, said Century Logistics managing director Steven Teow Choo Hing. "We don't envisage it (collaboration with FGV) happening. We want the story to end. We don't want to give wrong fillers to the market and people are hoping it might happen. For the present moment I'm optimistic that nothing concrete will happen. It's off," Teow said. (Sun)

Fitters Diversified Bhd has fixed the issue price of its placement shares at RM1.23 each and exercise price for its warrants at RM1 apiece. This represents a respective discount of approximately 8.21% to the five-day volume weighted average price (VWAP) of Fitters shares, up to and including Sept 22 of RM1.34 per share. The warrant exercise price represents premium of approximately 3.09% to the theoretical ex-all price of Fitters shares of RM0.97. In July, Fitters proposed to undertake a corporate exercise including a bonus and warrant issue, and a placement exercise of up to 10% of its shares to third-party investors. (StarBiz)

Protasco Bhd has launched a legal suit against Indonesian-based PT Anglo Slavic Utama (PT ASU) and two of its directors, Tey Por Yee and Ooi Kock Aun, at the Kuala Lumpur High Court. Protasco is claiming for a refund of the purchase price paid under the restated sale and purchase agreement (SPA) dated 28 Jan from PT ASU and damages arising from the breach of contract. It added that the company would make an impairment on the purchase price if necessary, in consultation with its auditors. Protasco had entered into an SPA with PT ASU in late-2012 to acquire 76% of PT Anglo Slavic Indonesia (PT ASI) for US$55m (RM181.3m). However, after due diligence, the terms of the SPA were revised. Subsequently, on Jan 29, Protasco entered into an amended SPA with PT ASU for the acquisition of a 63% stake in PT ASI for US$22m. This came with a profit guarantee of US$22m, or RM72m, spread over four years. The proposed deal lapsed as conditions of the restated SPA were not fulfilled by the vendor. (StarBiz)

ProEight Sdn Bhd (ProEight), a local mechanical engineering company, expects to generate over RM1bn in revenue by 2018 from the oil and gas sector through its cutting-edge mechanical seals technology, 'The Flexical'. Its managing director, Azhar Zainal Abidin said the company is optimistic of obtaining 10% of the global market share in mechanical seals worth RM25bn. "The market is dominated by two Western manufacturers," he said. The MoU sees ProEight and GPower forming a new company to operate a manufacturing premise in Buenos Aires at a ratio of 70:30, involving an investment of US$20m (RM64m) within three years. (Bernama)

Daybreak│Malaysia

September 24, 2014

11

BMSB: Changes in shareholdings

Type of No of Ave Price

23-Sep-14 Date transaction securities Company (RM)

EPF 18/9 Disposed 6,554,700 KNM GROUP

EPF 18/9 Disposed 3,640,000 AXIATA GROUP

EPF 18/9 Disposed 2,562,800 PUBLIC BANK

EPF 18/9 Disposed 2,129,600 TELEKOM MALAYSIA

EPF 18/9 Disposed 1,325,600 IOI CORPORATION

EPF 18/9 Disposed 975,700 YTL POWER INTERNATIONAL

EPF 18/9 Disposed 947,300 IHH HEALTHCARE

EPF 18/9 Disposed 659,700 KPJ HEALTHCARE

EPF 18/9 Disposed 580,500 PETRONAS GAS

EPF 18/9 Disposed 560,000 BERJAYA AUTO

EPF 18/9 Disposed 462,400 AFG

EPF 18/9 Disposed 426,200 SAPURAKENCANA PETROLEUM

EPF 18/9 Disposed 300,000 EASTERN & ORIENTAL

EPF 18/9 Disposed 243,600 YINSON HOLDINGS

EPF 18/9 Disposed 184,000 WAH SEONG CORPORATION

EPF 18/9 Disposed 181,200 SUPERMAX

EPF 17/9 Disposed 175,700 AEON CO. (M)

EPF 18/9 Disposed 48,400 TOP GLOVE

EPF 18/9 Disposed 42,600 UMW HOLDINGS

EPF 18/9 Disposed 10,800 POS MALAYSIA

Skim Amanah Saham Bumiputera 17/9-19/9 Disposed 46,000,000 AXIATA GROUP

Skim Amanah Saham Bumiputera 15/9 Disposed 3,000,000 TENAGA NASIONAL

Skim Amanah Saham Bumiputera 17/9-18/9 Disposed 1,080,000 GAMUDA

Permodalan Nasional Berhad 18/9 Disposed 60,000,000 SIME DARBY

Kumpulan Wang Persaraan 12/9-15/9 Disposed 2,557,200 GAMUDA

Kumpulan Wang Persaraan 12/9-15/9 Disposed 393,400 IJM CORPORATION

Kumpulan Wang Persaraan 12/9 Disposed 212,000 AXIS REIT

Kumpulan Wang Persaraan 15/9-17/9 Disposed 141,600 POS MALAYSIA

Kumpulan Wang Persaraan 12/9 Disposed 31,800 PRESTARIANG

Kumpulan Wang Persaraan 12/9 Disposed 28,200 FELDA GLOBAL VENTURES

Aberdeen Asset Management PLC 19/9 Disposed 46,400 SHANGRI-LA HOTELS

EPF 12/9-17/9 Acquired 8,449,600 TENAGA NASIONAL

EPF 18/9 Acquired 1,800,000 YTL CORPORATION

EPF 18/9 Acquired 1,477,600 IOI PROPERTIES GROUP

EPF 18/9 Acquired 1,261,000 GAMUDA

EPF 18/9 Acquired 1,195,800 DIALOG GROUP

EPF 18/9 Acquired 1,000,000 MAH SING GROUP

EPF 18/9 Acquired 819,100 AMMB HOLDINGS

EPF 18/9 Acquired 589,000 SIME DARBY

EPF 18/9 Acquired 563,700 UOA REIT

EPF 18/9 Acquired 538,800 HONG LEONG BANK

EPF 18/9 Acquired 500,000 BUMI ARMADA

EPF 18/9 Acquired 500,000 BURSA MALAYSIA

EPF 18/9 Acquired 427,700 GENTING PLANTATIONS

EPF 17/9-18/9 Acquired 335,800 MALAYSIA AIRPORTS

EPF 18/9 Acquired 210,200 MMC CORPORATION

EPF 18/9 Acquired 200,800 IJM CORPORATION

EPF 18/9 Acquired 200,000 KUALA LUMPUR KEPONG

EPF 18/9 Acquired 162,100 TIME DOTCOM

EPF 18/9 Acquired 154,200 PERDANA PETROLEUM

EPF 18/9 Acquired 79,600 HOCK SENG LEE

EPF 18/9 Acquired 59,300 DIGI.COM

EPF 18/9 Acquired 55,800 WCT HOLDINGS

EPF 18/9 Acquired 47,400 AL-`AQAR HEALTHCARE REIT

EPF 18/9 Acquired 44,500 SUNWAY REIT

EPF 18/9 Acquired 43,200 IJM PLANTATIONS

EPF 18/9 Acquired 26,100 HARTALEGA HOLDINGS

SOURCES: BMSB

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BMSB: Changes in shareholdings

Type of No. of Ave Price

23-Sep-14 Date transaction securities Company (RM)

Skim Amanah Saham Bumiputera 18/9 Acquired 60,000,000 SIME DARBY

Skim Amanah Saham Bumiputera 18/9 Acquired 15,000,000 IJM CORPORATION

Skim Amanah Saham Bumiputera 17/9-19/9 Acquired 3,443,700 TELEKOM MALAYSIA

Skim Amanah Saham Bumiputera 17/9-18/9 Acquired 700,000 MALAYSIA AIRPORTS

Skim Amanah Saham Bumiputera 17/9-18/9 Acquired 129,000 AXIS REIT

Kumpulan Wang Persaraan 12/9-17/9 Acquired 1,494,000 PETRONAS GAS

Kumpulan Wang Persaraan 12/9-17/9 Acquired 584,700 TOP GLOVE

Kumpulan Wang Persaraan 12/9-15/9 Acquired 237,000 GENTING PLANTATIONS

Kumpulan Wang Persaraan 17/9 Acquired 106,700 WCT HOLDINGS

Kumpulan Wang Persaraan 12/9-15/9 Acquired 95,490 SP SETIA

Kumpulan Wang Persaraan 12/9 Acquired 27,000 KULIM (MALAYSIA)

Lembaga Tabung Angkatan Tentera 15/9-17/9 Acquired 675,000 BOUSTEAD PLANTATIONS

Vertical Capacity Sdn Bhd 18/9-22/9 Acquired 5,700,000 IOI PROPERTIES GROUP

Ho Sue San @ David Ho Sue San 18/9 Acquired 15,000 HOVID 0.40

Massachusetts Mutual Life Insurance Co 18/9 Acquired 404,400 GENTING BERHAD

KPJ HEALTHCARE 23/9 Shares Buy Back 100,000 KPJ HEALTHCARE 3.83

SUNWAY BERHAD 23/9 Shares Buy Back 43,700 SUNWAY BERHAD 3.52

WAH SEONG CORPORATION 23/9 Shares Buy Back 20,000 WAH SEONG CORPORATION 1.77

DAIBOCHI PLASTIC 23/9 Shares Buy Back 18,700 DAIBOCHI PLASTIC 4.28

SOURCES: BMSB

BMSB: Off-market transactions

23-Sep-14 Vol

REACH 15,333,333

PWORTH 14,700,000

SCICOM 10,000,000

SCOPE 7,500,000

CSCENIC 5,152,424

LONBISC 3,000,000

XINGHE 2,300,000

HUAYANG 2,000,000

BIMB 2,000,000

SAB 1,800,000

UZMA 1,200,000

FABER 1,100,000

TAKASO 1,000,000

Notes:CN-Crossing deal on board lots

MN-Married deal on board lots MO-Married deal on odd lots

SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

24-Sep-14 Ann Date Proposed

ECO WORLD 25-Apr-14 1 Rights @ 2, 4 Free Warrants @ 5, Private Placement

SBC CORP 27-May-14 Bonus issue 1:2

ASIA FILE CORP 6-Aug-14 Bonus issue 3:5

GHL SYSTEMS 20-Aug-14 Bonus issue 1:2

EASTERN & ORIENTAL 5-Sep-14 Bonus issue 1:10, Free Warrants 1:5

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

BENALEC HOLDINGS  12-Sep-14 > RM200m of 7-year Redeemable Convertible Secured Bonds

SOURCES: BMSB

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BMSB: Dividends

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

Date

Payment

DateSTAR PUBLICATIONS Interim dividend - single tier 9.00 18-Aug-14 24-Sep-14 26-Sep-14 17-Oct-14

1st interim: 6 sen; special: 3 sen

CARLSBERG BREWERY Interim dividend - single tier 5.00 26-Aug-14 24-Sep-14 26-Sep-14 10-Oct-14

MALAYAN BANKING Interim dividend - single tier 24.00 12-Sep-14 25-Sep-14 29-Sep-14 28-Oct-14

TELEKOM MALAYSIA Interim dividend - single tier 9.50 12-Sep-14 25-Sep-14 29-Sep-14 29-Oct-14

KPJ HEALTHCARE Interim dividend - single tier 1.45 26-Aug-14 26-Sep-14 30-Sep-14 21-Oct-14

GENTING Interim dividend - single tier 1.00 28-Aug-14 26-Sep-14 30-Sep-14 27-Oct-14

GENTING MALAYSIA Interim dividend - single tier 3.00 28-Aug-14 26-Sep-14 30-Sep-14 21-Oct-14

GENTING PLANTATIONS Interim dividend - single tier 3.00 27-Aug-14 26-Sep-14 30-Sep-14 17-Oct-14

CIMB GROUP HOLDINGS 1st interim dividend - single tier 10.00 15-Sep-14 26-Sep-14 30-Sep-14 17-Oct-14

DRB-HICOM Final dividend - single tier 4.50 5-Sep-14 1-Oct-14 3-Oct-14 30-Oct-14

ASTRO MALAYSIA 2nd interim dividend - single tier 2.25 19-Sep-14 2-Oct-14 7-Oct-14 20-Oct-14

AXIATA GROUP Interim dividend - single tier 8.00 5-Sep-14 7-Oct-14 9-Oct-14 24-Oct-14

BERJAYA SPORTS TOTO 1st interim dividend - single tier 5.50 19-Sep-14 7-Oct-14 9-Oct-14 24-Oct-14

EASTERN & ORIENTAL 1st & final dividend - single tier 3.00 22-Aug-14 8-Oct-14 10-Oct-14 5-Nov-14

SBC CORP 1st & final dividend - single tier 4.75 5-Sep-14 14-Oct-14 16-Oct-14 3-Nov-14

YTL CORPORATION 3rd interim dividend - single tier 9.50 28-Aug-14 29-Oct-14 31-Oct-14 14-Nov-14

YTL POWER Interim dividend - single tier 10.00 28-Aug-14 29-Oct-14 31-Oct-14 14-Nov-14

THONG GUAN INDUSTRIES Interim dividend - single tier 3.00 22-Aug-14 5-Nov-14 7-Nov-14 18-Nov-14

ASIA FILE CORP Final dividend - single tier 13.50 4-Sep-14 26-Nov-14 28-Nov-14 26-Dec-14

SOURCES: BMSB

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Corporate Actions

September 2014

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6

Replacement for National Day

External Trade

7 8 9 10 11 12 13

External Reserves (month-end data)

Industrial Production

14 15 16 17 18 19 20

Malaysia Day SP Setia 3Q, CPI MPC Decision B-Toto 1Q, Astro 2Q

21 22 23 24 25 26 27

External Reserves (mid-month data)

Pengkalan Kubor by-election

28 29 30

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

October 2014

SUN MON TUE WED THU FRI SAT

1 2 3 4

5 6 7 8 9 10 11

Hari Raya Qurban Replacement for Hari Raya Qurban

External Trade External Reserves (month-end data)

2015 Budget Industrial Production

12 13 14 15 16 17 18

CPI

19 20 21 22 23 24 25

Foreign Reserves (mid-month data)

Deepavali Awal Muharram

26 27 28 29 30 31

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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CIMB Recommendation Framework

Stock Ratings Definition

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

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

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

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

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