China oil and-15% gas spotlight -...

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April 3, 2014 IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. Designed by Eight, Powered by EFA HONG KONG OIL & GAS - OVERALL China oil and gas spotlight As demand for natural gas in China continues to rise, domestic natural gas production would need to grow at a faster pace to help reduce the country’s reliance on imported gas. Figure 1: Share price performance - Big 3 oil companies Figure 2: Share price performance - Oilfield services companies -30% -20% -10% 0% 10% 20% 30% 40% Jan-14 Jan-14 Jan-14 Jan-14 Jan-14 Feb-14 Feb-14 Feb-14 Feb-14 Mar-14 Mar-14 Mar-14 Mar-14 Apr-14 Anton SPT Petro-king SOURCES: CIMB, BLOOMBERG SOURCES: CIMB BLOOMBERG Sinopec is leading the new gas production, with promising gas fields in the Ordos basin and Sichuan. We believe oilfield services companies are best positioned in this early stage of production ramp up, with Petro-king as our preferred pick (Add rating and target price of HK$5.2). The overall sector remains an Overweight. China still high reliance on gas imports According to the National Energy Administration (NEA), China’s 2014 apparent consumption of natural gas is estimated at 193bcm, +14.5% yoy. As domestic production (conventional and unconventional) would only contribute approx. 130bcm, imported gas will have to meet 33% of the domestic demand, thus making it an important source of natural gas for China’s growing appetite. In addition, the construction of four new importing pipelines by 2020 indicates China’s further reliance on imported gas going forward. Sinopec gas production ramp up Sinopec North China’s Daniudi gas field recorded natural gas production of 1bcm in 1Q14, accounting for 25.1% of its full-year target. The Daniudi gas field shows promising production potential, and has become the fourth largest gas field in China. The new DPS-38 gas well has been in production for 196 days, with cumulative gas production of 20.1m cubic metres, while a single testing horizontal well had achieved the highest unobstructed gas flow, with a daily flow of 588,680 cubic metres. Oilfield services still a better play at this stage With Sinopec taking charge of the production of tight gas at Daniudi and shale gas in Sichuan, in our opinion, the oilfield services sector is best positioned to benefit at this early stage. Our preferred pick is Petro-king which has the highest exposure to Sinopec, at both Daniudi and Sichuan, among its peers. Notes from the Field ————————————————————————————————————————— Jimmy WONG T (852) 2532 1125 E [email protected] Toby SHEK T (852) 2532 1119 E [email protected] -25% -20% -15% -10% -5% 0% 5% 10% 15% Jan-14 Jan-14 Jan-14 Jan-14 Jan-14 Feb-14 Feb-14 Feb-14 Feb-14 Mar-14 Mar-14 Mar-14 Mar-14 Apr-14 PetroChina Sinopec CNOOC

Transcript of China oil and-15% gas spotlight -...

April 3, 2014

IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT. Designed by Eight, Powered by EFA

HONG KONG OIL & GAS - OVERALL

China oil and gas spotlight As demand for natural gas in China continues to rise, domestic natural gas production would need to grow at a faster pace to help reduce the country’s reliance on imported gas.

Figure 1: Share price performance - Big 3 oil companies

Figure 2: Share price performance - Oilfield services companies

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Anton SPT Petro-king

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB BLOOMBERG

Sinopec is leading the new gas production, with promising gas fields in the Ordos basin and Sichuan. We believe oilfield services companies are best positioned in this early stage of production ramp up, with Petro-king as our preferred pick (Add rating and target price of HK$5.2). The overall sector remains an Overweight.

China still high reliance on gas imports According to the National Energy Administration (NEA), China’s 2014 apparent consumption of natural gas is estimated at 193bcm, +14.5% yoy. As domestic production (conventional and unconventional) would only contribute approx. 130bcm, imported gas will have to meet 33% of the domestic demand, thus making it an important source of natural gas for China’s growing appetite. In addition, the construction of four new importing pipelines by 2020 indicates China’s further reliance on imported gas going forward.

Sinopec gas production ramp up Sinopec North China’s Daniudi gas field recorded natural gas production of 1bcm in 1Q14, accounting for 25.1% of its full-year target. The Daniudi gas field shows promising production potential, and has become the fourth largest gas field in China. The new DPS-38 gas well has been in production for 196 days, with cumulative gas production of 20.1m cubic metres, while a single testing horizontal well had achieved the highest unobstructed gas flow, with a daily flow of 588,680 cubic metres.

Oilfield services still a better play at this stage With Sinopec taking charge of the production of tight gas at Daniudi and shale gas in Sichuan, in our opinion, the oilfield services sector is best positioned to benefit at this early stage. Our preferred pick is Petro-king which has the highest exposure to Sinopec, at both Daniudi and Sichuan, among its peers.

Sources: CIMB. COMPANY REPORTS

Notes from the Field

—————————————————————————————————————————

Jimmy WONG T (852) 2532 1125 E [email protected]

Toby SHEK T (852) 2532 1119 E [email protected]

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April 3, 2014

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Figure 3: Sector Comparisons

Price Target Price

(local curr) (local curr) CY13 CY14 CY13 CY14 CY13 CY14 CY13 CY14

Integrated

Petrochina 857 HK ADD 8.59 10.00 221,010 9.7 9.6 8.1% 1.1 1.0 11.6% 11.4% 4.6% 4.7%

Sinopec 386 HK ADD 6.95 8.40 97,385 9.6 8.9 7.9% 1.1 1.1 12.1% 12.5% 4.3% 4.5%

Reliance Industries RIL IN REDUCE 958 850 51,702 13.1 12.2 1.3% 1.6 1.4 13.1% 12.4% 1.0% 1.0%

PTT PTT TB HOLD 307 321 27,074 9.3 8.3 0.6% 1.3 1.2 15.7% 14.6% 4.2% 4.8%

Oil & Natural Gas ONGC IN HOLD 330 290 47,136 11.1 9.4 3.5% 1.7 1.6 16.6% 17.5% 3.1% 3.5%

Average - simple 10.6 9.7 4.3% 1.4 1.3 14% 14% 3.5% 3.7%

E&P

CNOOC Limited 883 HK HOLD 11.8 13.6 68,033 7.5 6.9 2.6% 1.2 1.1 17.1% 17.1% 4.8% 3.9%

Kunlun Energy 135 HK HOLD 13.3 14.1 13,820 15.6 13.6 13.3% 2.1 1.9 14.5% 14.6% 2.3% 2.7%

PTT E&P PTTEP TB ADD 159.0 183.0 19,489.6 10.9 9.1 0.0 1.6 1.5 17.3% 17.0% 3.8% 4.4%

MIE Holdings Corp 1555 HK NON RATED 1.4 n.a. 492 8.7 10.0 -31.3% 0.8 0.7 9.2% 7.4% 0.9% 2.1%

Horizon Oil HZN AU ADD 0.3 0.5 373 26.1 11.2 92.9% 1.61 1.24 6.8% 12.4% 0.0% 0.0%

Maverick MAD AU ADD 0.4 0.6 160 33.3 12.6 67.2% 1.29 1.08 4.6% 9.5% 0.0% 0.0%

Senex Energy SXY AU ADD 0.7 1.2 768 16.5 13.2 37.8% 1.76 1.54 11.9% 12.5% 0.0% 0.0%

Sundance Energy SEA AU ADD 1.0 1.4 470 17.9 7.0 na 1.92 1.37 10.0% 22.6% 0.0% 0.0%

Tlou Energy TOU AU ADD 0.3 0.6 45 na na na 1.04 0.61 -14.7% -7.1% 0.0% 0.0%

Cairn India CAIR IN ADD 345.1 400.0 10,991 5.8 6.3 -7.5% 1.22 1.06 23.6% 18.3% 3.4% 3.2%

Oil India OINL IN ADD 491.0 530.0 4,928 8.3 7.7 -2.1% 1.45 1.34 18.3% 18.0% 6.1% 6.1%

Average - simple 15.1 9.8 19.4% 1.5 1.2 10.8% 12.9% 1.9% 2.0%

Refiners

Thai oil TOP TB ADD 52.8 71.0 3,323 8.0 9.4 4.9% 1.19 1.11 16.2% 12.2% 4.6% 4.8%

SK Innovation 096770 KS ADD 120,000.0 159,000.0 10,501 15.4 12.4 10.8% 0.70 0.67 4.4% 5.6% 2.7% 2.7%

S-Oil Corp 010950 KS ADD 61,000.0 78,000.0 6,500 22.0 13.1 13.9% 1.28 1.19 5.6% 9.5% 2.2% 3.7%

GS Holdings Corp 078930 KS ADD 48,350.0 60,000.0 4,252 11.9 9.2 4.7% 0.68 0.64 5.6% 7.3% 2.5% 2.9%

Formosa Petrochemical 6505 TT REDUCE 77.4 72.0 24,310 29.4 26.4 128.5% 3.13 2.99 11.5% 11.6% 2.0% 2.3%

PTT Global Chemical PTTGC TB ADD 73.0 96.0 10,163 10.0 8.7 8.0% 1.38 1.29 15.2% 15.2% 4.6% 5.2%

Bharat Petroleum BPCL IN ADD 449.0 475.0 5,420 11.5 10.1 19.8% 1.54 1.41 14.7% 14.8% 2.6% 2.7%

Hindustan Petroleum HPCL IN ADD 307.6 300.0 1,739 9.4 6.8 41.1% 0.78 0.71 8.6% 11.0% 2.8% 2.8%

Average - simple 14.7 12.0 29.0% 1.3 1.3 10.2% 10.9% 3.0% 3.4%

China Oil Services

Termbray Petro-king Oilfield Services Ltd2178 HK ADD 3.1 5.2 435 15.5 10.3 26.1% 1.5 1.4 13.1% 13.9% 1.3% 1.9%

Anton Oilfield Services 3337 HK REDUCE 5.1 3.5 1,453 23.1 21.5 20.7% 4.0 3.6 18.0% 17.7% 1.5% 1.6%

SPT Energy Group 1251 HK ADD 4.3 5.2 857 17.7 14.5 27.6% 3.0 2.6 17.6% 19.3% 1.4% 1.7%

China Oilfield Services Limited 2883 HK NON RATED 19.4 n.a. 13,042 10.0 9.2 6.0% 1.6 1.4 17.3% 16.1% 2.8% 3.0%

Average - simple 16.5 13.9 20.1% 2.5 2.2 16.5% 16.7% 1.7% 2.1%

Regional Oil Services

Wah Seong Corp WSC MK ADD 1.9 2.7 449 34.1 10.9 33.5% 1.43 2.47 5.4% 16.6% 2.7% 3.7%

Dialog Group DLG MK ADD 3.8 3.6 2,809 38.3 27.9 25.4% 7.99 6.86 23.0% 26.8% 0.9% 1.0%

Perisai Petroleum PPT MK ADD 1.6 2.5 514 21.7 17.6 21.3% 1.72 2.17 10.8% 11.4% 0.0% 0.0%

Average - simple 31.3 18.8 26.7% 3.7 3.8 13.1% 18.2% 1.2% 1.5%

P/BV (x) Dividend Yield (%)Recurring ROE (%)Company

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SOURCES: CIMB, BLOOMBERG

Calculations are performed using EFA™ Monthly Interpolated Annualisation and Aggregation algorithms to December year ends

OIL & GAS - OVERALL

April 3, 2014

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News headlines 1. NEWS HEADLINES OF THE WEEK

Sinopec completed the transfer of its marketing segment to Sinopec Sales Co Ltd (National Business Daily) – 2 April 2014

Sinopec announced on 1 April 2014 that the ownership, management and control of the assets under the marketing and distribution segment of Sinopec has been transferred to Sinopec Sales Co. Ltd. According to the National Business Daily, the market is speculating that Sinopec may set up a research institute on its non-fuel business, but the news has not been officially verified by Sinopec. Regarding the injection of the marketing segment into Sinopec Sales, Sinopec refused to comment on the scale of business after the restructuring. People familiar with the matter believe that more numbers could be disclosed after finishing the appraisal work on all the sales and marketing assets in June.

News link

Sinopec sets 2014 goal for Yuanba project start-up (Zacks.com) – 1 April 2014

Sinopec intends to start producing from the Yuanba sour gas field in China’s south western Sichuan province by the end of 2014. Drilling at Yuanba field, still seen as a conventional resource, was largely carried out at a depth of 7,500 metres. The Yuanlu-7 well on the field tested 1.2 million cubic meters of gas per day, while another well Yuanlu-5 drilled in the same area, flowed 1.5m cm/d. Then, the Yuanba-21 well flowed 507,000 cm/d. As of year-end 2012, the company had drilled 69 wells, of which 25–30% could generate gas flows adequate for commercial development. The processing plant to be built at Yuanba is likely to produce 3.4 billion cubic meters of gas per year and is scheduled for completion by the end of 2014. This amount is equal to 18% of Sinopec’s total output of about 18.7 billion cubic meters in 2013.

News link

PetroChina plans to open its basins in Xinjiang to private capital (Upstreamonline) – 31 March 2014

In response to the government’s direction of mixed ownership in SOEs, PetroChina plans to invite private investors to invest in its basins in Northwest China and the Xinjiang area. The basins include the Tarim basin, Turpan-Hami basin and Junggar basin. PetroChina said the plan will not involve any bidding process, but negotiations will be carried with potential investors on a 1-on-1 basis while maintaining ownership diversity.

News link

PetroChina to Exploit Oil, Gas in Mexico (Menafn.com/China5e) – 31 March 2014

A top executive from PetroChina Company Limited revealed that the Chinese oil and gas producer would be awarded the oil and gas exploitation right in Mexico in the future. The Mexican energy reform approved last December ended the 75-year monopoly by local oil giant Pemex, aiming to lure foreign and private investment amounting to billions of US dollars through public bidding. PetroChina is ready to participate in Mexican oil and gas projects, considering that Mexico is one of its important target markets. No further details are available.

News link

OIL & GAS - OVERALL

April 3, 2014

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Husky Energy delivers production at the Liwan gas project (Market Watch) – 30 March 2014

Husky Energy and CNOOC Limited have commenced first production at the landmark Liwan Gas Project in the South China Sea. The Liwan 3-1 field has started production, with initial natural gas sales expected to be approximately 250 million cubic feet per day (mmcf/day) gross and increasing to approximately 300 mmcf/day in the second half of 2014. Initial sales of condensates and natural gas liquids from Liwan 3-1 are expected to be approximately 10,000 to 14,000 barrels of oil equivalent per day (boe/day) gross.

News link

Hilong completes the acquisition of Texas Internal Pipe Coating LLC (ACNNewswire) – 31 March 2014

Hilong announced that the Group has successfully acquired all the equity shares of Texas Internal Pipe Coating LLC ("TIPC") with the purchase agreement signed on 14 February 2014 and the acquisition completed on 26 March 2014. TIPC is a company with the main business of OCTG coating services with the capability of providing coating services for pipes with internal diameters from 2" to 12.75" at the current coating capacity of one million meters. Mr. Zhang Jun, Chairman and Chief Executive Officer of Hilong, said, "The transaction represents Hilong's another successful move in marching into the North American market after the establishment of the coating plant in Canada in 2013. The acquisition will significantly expand the Group's coating services capacity.”

News link

Rising expectation of crude oil futures trading in Shanghai: pending final approval from senior management (Takungpao) - 1 April 2014

Crude oil, an important strategic resource, may have its futures listed on the Shanghai Futures Exchange this year. “The futures exchange is currently undergoing the testing phase, while the transaction rules and guidelines have already been drafted. We are just pending the final approval from senior management and the most crucial issue for crude oil futures is whether it can link up with the international market”, according to people close to the Shanghai Futures Exchange.

News link

Daniudi gas field’s cumulative gas production exceeded 18.8bcm (Sinopecnews) – 3 April 2014

As of 31 March 2014, Sinopec North China’s Daniudi gas field recorded natural gas production of 1.0033bcm in 1Q14, accounting for 25.08% of the full-year target. The Daniudi gas field has become the fourth largest gas field in China with cumulative production exceeding 18.8bcm since commencement in 2005.

News link

OIL & GAS - OVERALL

April 3, 2014

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Daniudi gas field unobstructed gas production reached 20m cubic meters in DPS-38 well (Sinopecnews) – 2 April 2014

Daniudi DPS-38 gas well, which has been in production for 196 days, achieved a cumulative gas production of 20.06m cubic meters. The DPS-38 well, a single testing horizontal well, achieved the highest unobstructed gas flow with a daily flow of 588,680 cubic meters.

News link

China PX plant protests spill over into Guangzhou (Plasticstoday) – 1 April 2014

Protests against the construction of a paraxylene (PX) plant in Maoming city in China's Guangdong province on Sunday (30 March 2014) have spread to the provincial capital of Guangzhou. Several hundred protesters gathered in solidarity with residents of Maoming in their opposition to the plant and to denounce police brutality in quelling the demonstration over the weekend.

News link

Natural gas import reliance is on an increasing trend (China5e) - 3 April 2014

It is estimated that the apparent consumption of natural gas in 2014 will reach 193bcm, representing 14.5% yoy growth. Domestic natural gas production, coal to gas and CBM will contribute roughly 130bcm. Therefore, imports will remain an important source to meet the growing demand for natural gas in China. Apart from that, the political conflicts between Russia and Ukraine, as well as the construction of four new pipelines by 2020 may alter the picture of natural gas development in China.

News link

OIL & GAS - OVERALL

April 3, 2014

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2. OIL AND GAS STOCKS PERFORMANCE

Figure 4: 1 week absolute performance Figure 5: 3 months absolute performance

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SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

OIL & GAS - OVERALL

April 3, 2014

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Figure 6: 6 months absolute performance Figure 7: YTD absolute performance

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Source:

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SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

OIL & GAS - OVERALL

April 3, 2014

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3. INTERNATIONAL OIL PRICES AND SPREADS

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OIL & GAS - OVERALL

April 3, 2014

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4. REFINING MARGINS

Figure 14: China gross refining margin Figure 15: China gasoline and diesel price trend

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3Ja

n-1

3F

eb-1

3F

eb-1

3M

ar-

13

Mar-

13

Apr-

13

Apr-

13

May-

13

May-

13

Jun-1

3Ju

n-1

3Ju

l-13

Jul-13

Jul-13

Aug-1

3A

ug-1

3S

ep-1

3S

ep-1

3O

ct-13

Oct-13

Nov-

13N

ov-

13D

ec-

13D

ec-

13D

ec-

13Ja

n-1

4Ja

n-1

4F

eb-1

4F

eb-1

4M

ar-

14

Mar-

14

Rmb/tonneRmb/tonne

Crude moving avg (LHS) - Rmb/tonne Gasoline (RHS) Diesel (RHS)

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

Figure 16: Rotterdam Brent simple cracking margin Figure 17: Crude oil Gulf Coast 321 crack spread

Title:

Source:

Please fill in the values above to have them entered in your report

-6

-4

-2

0

2

4

6

8

10

12

14

16

Jan-0

8

Apr-

08

Jul-08

Oct-08

Jan-0

9

Apr-

09

Jul-09

Oct-09

Jan-1

0

Apr-

10

Jul-10

Oct-10

Jan-1

1

Apr-

11

Jul-11

Oct-11

Jan-1

2

Apr-

12

Jul-12

Oct-12

Jan-1

3

Apr-

13

Jul-13

Oct-13

Jan-1

4

US$/bbl

Rotterdam Brent simple cracking margin

Title:

Source:

-10

-5

0

5

10

15

20

Feb

-10

Apr-

10

Jun-1

0

Aug-1

0

Oct-10

Dec-

10

Feb

-11

Apr-

11

Jun-1

1

Aug-1

1

Oct-11

Dec-

11

Feb

-12

Apr-

12

Jun-1

2

Aug-1

2

Oct-12

Dec-

12

Feb

-13

Apr-

13

Jun-1

3

Aug-1

3

Oct-13

Dec-

13

Feb

-14

US$/bbl

Crude oil Gulf Coast 321 crack spread

SOURCES: CIMB, Reuters SOURCES: CIMB, BLOOMBERG

Figure 18: Singapore simple gross refining margin Figure 19: Singapore complex gross refining margin

Title:

Source:

Please fill in the values above to have them entered in your report

-5

-3

-1

1

3

5

7

9

11

13

15

Mar-

11

May-

11

Jul-11

Sep-1

1

Nov-

11

Jan-1

2

Mar-

12

May-

12

Jul-12

Sep-1

2

Nov-

12

Jan-1

3

Mar-

13

May-

13

Jul-13

Sep-1

3

Nov-

13

Jan-1

4

Mar-

14

US$/bbl

Singapore simple gross refining margin

Title:

Source:

Please fill in the values above to have them entered in your report

0

2

4

6

8

10

12

14

16

18

20

Mar-

11

May-

11

Jul-11

Sep-1

1

Nov-

11

Jan-1

2

Mar-

12

May-

12

Jul-12

Sep-1

2

Nov-

12

Jan-1

3

Mar-

13

May-

13

Jul-13

Sep-1

3

Nov-

13

Jan-1

4

Mar-

14

US$/bbl

Singapore complex gross refining margin

SOURCES: CIMB, REUTERS SOURCES: CIMB, REUTERS

OIL & GAS - OVERALL

April 3, 2014

10

5. INVENTORIES

Figure 20: US DOE crude oil total inventory (incl. strategic petroleum reserve)

Figure 21: US DOE crude oil inventory (excl. strategic petroleum reserve)

Title:

Source:

1,000

1,020

1,040

1,060

1,080

1,100

1,120

Jan-1

1

Mar-

11

May-

11

Jul-11

Sep-1

1

Nov-

11

Jan-1

2

Mar-

12

May-

12

Jul-12

Sep-1

2

Nov-

12

Jan-1

3

Mar-

13

May-

13

Jul-13

Sep-1

3

Nov-

13

Jan-1

4

Mar-

14

mmbbl

US DOE crude oil total inventory (incl. strategic petroleum reserve)

Title:

Source:

300

320

340

360

380

400

420

Jan-1

1

Mar-

11

May-

11

Jul-11

Sep-1

1

Nov-

11

Jan-1

2

Mar-

12

May-

12

Jul-12

Sep-1

2

Nov-

12

Jan-1

3

Mar-

13

May-

13

Jul-13

Sep-1

3

Nov-

13

Jan-1

4

Mar-

14

mmbbl

US DOE crude oil inventory (excl. strategic petroleum reserve)

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

Figure 22: US DOE motor gasoline inventory Figure 23: US DOE distillate fuel oil inventory

Title:

Source:

180

190

200

210

220

230

240

250

Jan-1

1

Mar-

11

May-

11

Jul-11

Sep-1

1

Nov-

11

Jan-1

2

Mar-

12

May-

12

Jul-12

Sep-1

2

Nov-

12

Jan-1

3

Mar-

13

May-

13

Jul-13

Sep-1

3

Nov-

13

Jan-1

4

Mar-

14

mmbbl

US DOE motor gasoline inventory

Title:

Source:

80

90

100

110

120

130

140

150

160

170

180

Jan-1

1

Mar-

11

May-

11

Jul-11

Sep-1

1

Nov-

11

Jan-1

2

Mar-

12

May-

12

Jul-12

Sep-1

2

Nov-

12

Jan-1

3

Mar-

13

May-

13

Jul-13

Sep-1

3

Nov-

13

Jan-1

4

Mar-

14

mmbbl

US DOE distillate fuel oil inventory

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

OIL & GAS - OVERALL

April 3, 2014

11

6. PRODUCTION, IMPORTS AND EXPORTS

Figure 24: China crude oil production, net import and apparent consumption

Figure 25: China natural gas production, net import and apparent consumption

Title:

Source:

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

-

5

10

15

20

25

30

35

40

45

50

Jan-0

7

May-

07

Sep-0

7

Jan-0

8

May-

08

Sep-0

8

Jan-0

9

May-

09

Sep-0

9

Jan-1

0

May-

10

Sep-1

0

Jan-1

1

May-

11

Sep-1

1

Jan-1

2

May-

12

Sep-1

2

Jan-1

3

May-

13

Sep-1

3

Jan-1

4

m tonnes

China crude oil production Net import

Apparent consumption YoY%

Title:

Source:

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

(2)

-

2

4

6

8

10

12

14

16

18

20

Jan-0

9

Apr-

09

Jul-09

Oct-09

Jan-1

0

Apr-

10

Jul-10

Oct-10

Jan-1

1

Apr-

11

Jul-11

Oct-11

Jan-1

2

Apr-

12

Jul-12

Oct-12

Jan-1

3

Apr-

13

Jul-13

Oct-13

Jan-1

4

bcm

China natural gas production Net import

Apparent consumption YoY%

SOURCES: CIMB, WIND SOURCES: CIMB, WIND

Figure 26: China pipeline natural gas import Figure 27: China LNG import

Title:

Source:

-

0.5

1.0

1.5

2.0

2.5

3.0

Jan-1

0

Mar-

10

May-

10

Jul-10

Sep-1

0

Nov-

10

Jan-1

1

Mar-

11

May-

11

Jul-11

Sep-1

1

Nov-

11

Jan-1

2

Mar-

12

May-

12

Jul-12

Sep-1

2

Nov-

12

Jan-1

3

Mar-

13

May-

13

Jul-13

Sep-1

3

Nov-

13

Jan-1

4

bcm

China pipeline natural gas import

Title:

Source:

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Jan-1

0

Mar-

10

May-

10

Jul-10

Sep-1

0

Nov-

10

Jan-1

1

Mar-

11

May-

11

Jul-11

Sep-1

1

Nov-

11

Jan-1

2

Mar-

12

May-

12

Jul-12

Sep-1

2

Nov-

12

Jan-1

3

Mar-

13

May-

13

Jul-13

Sep-1

3

Nov-

13

Jan-1

4

bcm

China LNG import

SOURCES: CIMB, WIND SOURCES: CIMB, WIND

Figure 28: China crude oil processed volume and growth Figure 29: China refined product production and growth

Title:

Source:

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

-

5

10

15

20

25

30

35

40

45

50

Jan-0

7

May-

07

Sep-0

7

Jan-0

8

May-

08

Sep-0

8

Jan-0

9

May-

09

Sep-0

9

Jan-1

0

May-

10

Sep-1

0

Jan-1

1

May-

11

Sep-1

1

Jan-1

2

May-

12

Sep-1

2

Jan-1

3

May-

13

Sep-1

3

Jan-1

4

m tonnes

Crude oil processed YoY%

Title:

Source:

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

-

5

10

15

20

25

30

Jan-0

7

May-

07

Sep-0

7

Jan-0

8

May-

08

Sep-0

8

Jan-0

9

May-

09

Sep-0

9

Jan-1

0

May-

10

Sep-1

0

Jan-1

1

May-

11

Sep-1

1

Jan-1

2

May-

12

Sep-1

2

Jan-1

3

May-

13

Sep-1

3

Jan-1

4

m tonnes

Gasoline production Diesel production

Kerosene production Refined product production growth

SOURCES: CIMB, WIND SOURCES: CIMB, WIND

OIL & GAS - OVERALL

April 3, 2014

12

7. VALUATION CHARTS

Figure 30: PetroChina - 12 months forward P/E band (HK$) Figure 31: PetroChina - Forward PE chart (x)

Title:

Source:

Please fill in the values above to have them entered in your report

0

5

10

15

20

25

Apr-

00

Oct-00

Apr-

01

Oct-01

Apr-

02

Oct-02

Apr-

03

Oct-03

Apr-

04

Oct-04

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

Petrochina (857 HK) 3x 8x 15x 20x

Title:

Source:

Please fill in the values above to have them entered in your report

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

Apr-

00

Oct-00

Apr-

01

Oct-01

Apr-

02

Oct-02

Apr-

03

Oct-03

Apr-

04

Oct-04

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

Forward PE +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

Figure 32: PetroChina - 12 months forward P/BV band (HK$) Figure 33: PetroChina - Forward P/BV chart (x)

Title:

Source:

Please fill in the values above to have them entered in your report

0

2

4

6

8

10

12

14

16

18

20

Apr-

00

Oct-00

Apr-

01

Oct-01

Apr-

02

Oct-02

Apr-

03

Oct-03

Apr-

04

Oct-04

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

Petrochina (857 HK) 0.5x 1x 1.5x 2x

Title:

Source:

Please fill in the values above to have them entered in your report

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Apr-

00

Oct-00

Apr-

01

Oct-01

Apr-

02

Oct-02

Apr-

03

Oct-03

Apr-

04

Oct-04

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

Forward PB +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

OIL & GAS - OVERALL

April 3, 2014

13

Figure 34: Sinopec - 12 months forward P/E band (HK$) Figure 35: Sinopec - Forward P/E chart (x)

Title:

Source:

Please fill in the values above to have them entered in your report

0

2

4

6

8

10

12

14

16

18

Oct-00

Apr-

01

Oct-01

Apr-

02

Oct-02

Apr-

03

Oct-03

Apr-

04

Oct-04

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

Sinopec (386 HK) 3x 8x 15x 20x

Title:

Source:

Please fill in the values above to have them entered in your report

-

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

Oct-00

Apr-

01

Oct-01

Apr-

02

Oct-02

Apr-

03

Oct-03

Apr-

04

Oct-04

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

Forward PE +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

Figure 36: Sinopec - 12 months forward P/BV band (HK$) Figure 37: Sinopec - Forward P/BV chart (x)

Title:

Source:

Please fill in the values above to have them entered in your report

0

2

4

6

8

10

12

14

Oct-00

Apr-

01

Oct-01

Apr-

02

Oct-02

Apr-

03

Oct-03

Apr-

04

Oct-04

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

Sinopec (386 HK) 0.5x 1x 1.5x 2x

Title:

Source:

Please fill in the values above to have them entered in your report

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

Oct-00

Apr-

01

Oct-01

Apr-

02

Oct-02

Apr-

03

Oct-03

Apr-

04

Oct-04

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

Forward PB +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

OIL & GAS - OVERALL

April 3, 2014

14

Figure 38: CNOOC - 12 months forward P/E band (HK$) Figure 39: CNOOC - Forward PE chart (x)

Title:

Source:

Please fill in the values above to have them entered in your report

0

5

10

15

20

25

30

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

CNOOC (883 HK) 2x 5x 10x 15x

Title:

Source:

Please fill in the values above to have them entered in your report

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

Forward PE +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

Figure 40: CNOOC - 12 months forward P/BV band (HK$) Figure 41: CNOOC - Forward P/BV chart (x)

Title:

Source:

Please fill in the values above to have them entered in your report

0

5

10

15

20

25

30

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

CNOOC (883 HK) 1x 1.5x 2x 2.5x

Title:

Source:

Please fill in the values above to have them entered in your report

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Apr-

05

Oct-05

Apr-

06

Oct-06

Apr-

07

Oct-07

Apr-

08

Oct-08

Apr-

09

Oct-09

Apr-

10

Oct-10

Apr-

11

Oct-11

Apr-

12

Oct-12

Apr-

13

Oct-13

Forward PB +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

OIL & GAS - OVERALL

April 3, 2014

15

Figure 42: Anton - 12 months forward P/E band (HK$) Figure 43: Anton - Forward P/E chart (x)

Title:

Source:

Please fill in the values above to have them entered in your report

0

1

2

3

4

5

6

7

8

Dec-

07

Jun-0

8

Dec-

08

Jun-0

9

Dec-

09

Jun-1

0

Dec-

10

Jun-1

1

Dec-

11

Jun-1

2

Dec-

12

Jun-1

3

Dec-

13

Anton (3337 HK) 3x 8x 15x 20x

Title:

Source:

Please fill in the values above to have them entered in your report

-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Dec-

07

Jun-0

8

Dec-

08

Jun-0

9

Dec-

09

Jun-1

0

Dec-

10

Jun-1

1

Dec-

11

Jun-1

2

Dec-

12

Jun-1

3

Dec-

13

Forward PE +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

Figure 44: Anton - 12 months forward P/BV band (HK$) Figure 45: Anton - Forward P/BV chart (x)

Title:

Source:

Please fill in the values above to have them entered in your report

0

1

2

3

4

5

6

7

8

Dec-

07

Jun-0

8

Dec-

08

Jun-0

9

Dec-

09

Jun-1

0

Dec-

10

Jun-1

1

Dec-

11

Jun-1

2

Dec-

12

Jun-1

3

Dec-

13

Anton (3337 HK) 0.5x 1x 2x 3x

Title:

Source:

Please fill in the values above to have them entered in your report

-

1.00

2.00

3.00

4.00

5.00

6.00

Dec-

07

Jun-0

8

Dec-

08

Jun-0

9

Dec-

09

Jun-1

0

Dec-

10

Jun-1

1

Dec-

11

Jun-1

2

Dec-

12

Jun-1

3

Dec-

13

Forward PB +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

OIL & GAS - OVERALL

April 3, 2014

16

Figure 46: SPT - 12 months forward P/E band (HK$) Figure 47: SPT - forward P/E chart (x)

Title:

Source:

Please fill in the values above to have them entered in your report

0

1

2

3

4

5

6

Dec-

11

Jan-1

2

Feb

-12

Mar-

12

Apr-

12

May-

12

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct-12

Nov-

12

Dec-

12

Jan-1

3

Feb

-13

Mar-

13

Apr-

13

May-

13

Jun-1

3

Jul-13

Aug-1

3

Sep-1

3

Oct-13

Nov-

13

Dec-

13

Jan-1

4

Feb

-14

Mar-

14

SPT (1251 HK) (HK$/sh) 5x 8x 10x 15x

Title:

Source:

Please fill in the values above to have them entered in your report

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Dec-

11

Jan-1

2

Feb

-12

Mar-

12

Apr-

12

May-

12

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct-12

Nov-

12

Dec-

12

Jan-1

3

Feb

-13

Mar-

13

Apr-

13

May-

13

Jun-1

3

Jul-13

Aug-1

3

Sep-1

3

Oct-13

Nov-

13

Dec-

13

Jan-1

4

Feb

-14

Mar-

14

Forward P/E +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

Figure 48: SPT - 12 months forward P/BV band (HK$) Figure 49: SPT - forward P/BV chart (x)

Title:

Source:

Please fill in the values above to have them entered in your report

0

1

2

3

4

5

6

Dec-

11

Jan-1

2

Feb

-12

Mar-

12

Apr-

12

May-

12

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct-12

Nov-

12

Dec-

12

Jan-1

3

Feb

-13

Mar-

13

Apr-

13

May-

13

Jun-1

3

Jul-13

Aug-1

3

Sep-1

3

Oct-13

Nov-

13

Dec-

13

Jan-1

4

Feb

-14

Mar-

14

SPT (1251 HK) (HK$/sh) 0.5x 1x 2x 3x

Title:

Source:

Please fill in the values above to have them entered in your report

-

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Dec-

11

Jan-1

2

Feb

-12

Mar-

12

Apr-

12

May-

12

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct-12

Nov-

12

Dec-

12

Jan-1

3

Feb

-13

Mar-

13

Apr-

13

May-

13

Jun-1

3

Jul-13

Aug-1

3

Sep-1

3

Oct-13

Nov-

13

Dec-

13

Jan-1

4

Feb

-14

Mar-

14

Forward P/BV +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

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17

Figure 50: Petro-king - 12-month forward P/E band (HK$) Figure 51: Petro-king - Forward P/E band chart

Title:

Source:

Please fill in the values above to have them entered in your report

1

2

3

4

5

6

7

Mar-

13

Mar-

13

Apr-

13

Apr-

13

Apr-

13

May-

13

May-

13

Jun-1

3

Jun-1

3

Jul-13

Jul-13

Aug-1

3

Aug-1

3

Sep-1

3

Sep-1

3

Oct-13

Oct-13

Oct-13

Nov-

13

Nov-

13

Dec-

13

Dec-

13

Jan-1

4

Petro-king (2178 HK) (HK$/sh) 8x 13x 18x 22x

Title:

Source:

Please fill in the values above to have them entered in your report

10.00

12.00

14.00

16.00

18.00

20.00

22.00

24.00

26.00

28.00

Apr-

13

Apr-

13

Apr-

13

May-

13

May-

13

Jun-1

3

Jun-1

3

Jul-13

Jul-13

Aug-1

3

Aug-1

3

Sep-1

3

Sep-1

3

Sep-1

3

Oct-13

Oct-13

Nov-

13

Nov-

13

Dec-

13

Dec-

13

Jan-1

4

Jan-1

4

Feb

-14

Feb

-14

Mar-

14

Forward PE +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

Figure 52: Petro-king - 12-month forward P/BV band (HK$) Figure 53: Petro-king - Forward P/BV band chart

Title:

Source:

Please fill in the values above to have them entered in your report

2

2.5

3

3.5

4

4.5

5

5.5

6

6.5

Mar-

13

Mar-

13

Apr-

13

Apr-

13

Apr-

13

May-

13

May-

13

Jun-1

3

Jun-1

3

Jul-13

Jul-13

Aug-1

3

Aug-1

3

Sep-1

3

Sep-1

3

Oct-13

Oct-13

Oct-13

Nov-

13

Nov-

13

Dec-

13

Dec-

13

Jan-1

4

Jan-1

4

Petro-king (2178 HK) (HK$/sh) 1x 1.5x 2x 2.5x

Title:

Source:

Please fill in the values above to have them entered in your report

1.00

1.20

1.40

1.60

1.80

2.00

2.20

2.40

2.60

2.80

3.00

Apr-

13

Apr-

13

Apr-

13

May-

13

May-

13

Jun-1

3

Jun-1

3

Jul-13

Jul-13

Aug-1

3

Aug-1

3

Sep-1

3

Sep-1

3

Sep-1

3

Oct-13

Oct-13

Nov-

13

Nov-

13

Dec-

13

Dec-

13

Jan-1

4

Jan-1

4

Feb

-14

Feb

-14

Mar-

14

Forward PB +1SD -1SD Mean

SOURCES: CIMB, BLOOMBERG SOURCES: CIMB, BLOOMBERG

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DISCLAIMER

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(ii) As of April 3, 2014, the analyst(s) who prepared this report, has / have an interest in the securities (which may include but not limited to shares, warrants, call warrants and/or any other derivatives) in the following company or companies covered or recommended in this report:

(a) -

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19

covered in this report should contact the Head of Sales at CIMB Securities Limited. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CHK has no obligation to update its opinion or the information in this research report.

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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.

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Score Range: 90 – 100 80 – 89 70 – 79 Below 70 or No Survey Result Description: Excellent Very Good Good N/A

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matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”); (c) are persons falling within Article 49 (2) (a) to (d) (“high net worth companies, unincorporated associations etc”) of the Order; (d) are outside the United Kingdom; or (e) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with any investments to which this report relates may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as “relevant persons”). This report is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this report relates is available only to relevant persons and will be engaged in only with relevant persons.

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Rating Distribution (%) Investment Banking clients (%)

Outperform/Buy/Trading Buy/Add 52.1% 6.4%

Neutral/Hold 31.8% 5.6%

Underperform/Sell/Trading Sell/Reduce 16.1% 5.6%

Distribution of stock ratings and investment banking clients for quarter ended on 28 February 2014

1347 companies under coverage for quarter ended on 28 February 2014

As at the time of publishing this report CIMB is phasing in an absolute recommendation structure for stocks (Framework #1). Please refer to all frameworks for a definition of any recommendations stated in this report.

CIMB Recommendation Framework #1 Stock Ratings Definition Add The stock’s total return is expected to exceed 10% over the next 12 months. Hold The stock’s total return is expected to be between 0% and positive 10% over the next 12 months. Reduce The stock’s total return is expected to fall below 0% or more over the next 12 months. The total expected return of a stock is defined as the sum of the: (i) percentage difference between the target price and the current price and (ii) the forward net dividend yields of the stock. Stock price targets have an investment horizon of 12 months. Sector Ratings Definition Overweight An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation. Neutral A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation. Underweight An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation. Country Ratings Definition Overweight An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark. Neutral A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark. Underweight An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark.

CIMB Stock Recommendation Framework #2 * Outperform The stock's total return is expected to exceed a relevant benchmark's total return by 5% or more over the next 12 months. Neutral The stock's total return is expected to be within +/-5% of a relevant benchmark's total return. Underperform The stock's total return is expected to be below a relevant benchmark's total return by 5% or more over the next 12 months. Trading Buy The stock's total return is expected to exceed a relevant benchmark's total return by 3% or more over the next 3 months. Trading Sell The stock's total return is expected to be below a relevant benchmark's total return by 3% or more over the next 3 months. * This framework only applies to 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. Occasionally, it is permitted for the total expected returns to be temporarily outside the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons. CIMB Research Pte Ltd (Co. Reg. No. 198701620M)

CIMB Stock Recommendation Framework #3 ** 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. ** This framework only applies to stocks listed on the Korea Exchange, Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily outside the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.

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April 3, 2014

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Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2013. AAV – Good, ADVANC - Excellent, AMATA - Very Good, ANAN – Good, AOT - Excellent, AP - Very Good, BANPU - Excellent , BAY - Excellent , BBL - Excellent, BCH – Good, BCP - Excellent, BEC - Very Good, BGH - not available, BJC – Very Good, BH - Very Good, BIGC - Very Good, BTS - Excellent, CCET – Very Good, CENTEL – Very Good, CK - Excellent, CPALL - Very Good, CPF – Excellent, CPN - Excellent, DELTA - Very Good, DTAC - Excellent, EGCO – Excellent, GLOBAL - Good, GLOW - Very Good, GRAMMY – Excellent, HANA - Excellent, HEMRAJ - Excellent, HMPRO - Very Good, INTUCH – Excellent, ITD – Very Good, IVL - Excellent, JAS – Very Good, KAMART – not available, KBANK - Excellent, KKP – Excellent, KTB - Excellent, LH - Very Good, LPN - Excellent, MAJOR – Very Good, MAKRO – Very Good, MCOT - Excellent, MINT - Excellent, PS - Excellent, PSL - Excellent, PTT - Excellent, PTTGC - Excellent, PTTEP - Excellent, QH - Excellent, RATCH - Excellent, ROBINS - Excellent, RS – Excellent, SAMART – Excellent, SC – Excellent, SCB - Excellent, SCC - Excellent, SCCC - Very Good, SIRI – Very Good, SPALI - Excellent, STA - Good, STEC - Very Good, TCAP - Excellent, THAI - Excellent, THCOM – Excellent, TICON – Very Good, TISCO - Excellent, TMB - Excellent, TOP - Excellent, TRUE - Excellent, TTW – Excellent, TUF - Very Good, VGI – Excellent, WORK – Good.