REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 5 January 2015

▌What’s on the Table…

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Property Devt & Invt - Post-GST blues?

The property sector was one of the better performing sectors in 2014 but that will be difficult to sustain in 2015 in view of the imminent implementation of the 6% goods and services tax (GST) starting Apr 1. 2015 is going to be another tough year for developers in terms of sales and investors should be selective in their exposure to property stocks. We downgrade the property sector from overweight to Neutral while downgrading UEM Sunrise from buy to Hold and SP Setia from hold to Reduce. Our top picks remain the top-2 best-managed companies in the sector, Mah Sing Group and Eco World. They have the best chances of bucking the softer sales trend.

Plantations - Preview of Dec palm oil stocks

A survey conducted by our futures team revealed that Malaysian palm oil output is likely to fall by 22% mom to 1.36m tonnes due to seasonally low production and severe flooding in the East Coast states in Dec 2014. Palm oil exports fell by 0.9% as stronger demand from India cushioned weaker imports by China. Overall, we expect Malaysian palm oil inventory to decline by 12% mom to a 5-month low of 2m tonnes in Dec 2014. The lower inventory is near-term positive for CPO prices. However, this is offset by the concerns about biodiesel demand risk due to the weak crude oil prices. We maintain our Neutral sector call and prefer planters like First Resources, AALI and SIMP.

JobStreet Corp - No jobs on this street

The Edge weekly reported that the recent rally in Jobstreet’s share price is attributable to expectations of a possible venture in a new core business, given its management’s successful track record in founding tech start-ups. We are not surprised by the news given the decent value in Jobstreet’s remaining assets. Nevertheless, we see the recent surge in share price as unsustainable due to the near-term overhang from business transition activities with SEEK Asia. Despite Jobstreet’s net cash balance of over RM44m, we think it would need to seek funding to grow its remaining assets or invest in a new core business. Hence, we cut our rating from Hold to Reduce, with an unchanged target price still based on 16.8x CY16 P/E, a 30% discount to the IT services sector P/E of 24x. Switch to GHL Systems for tech sector exposure.

▌News of the Day…

—————————————————————————————————————————————————————————————————————— • IJM Corp secured RM538m Johor Puteri Cove Residences job

• IHH keen to acquire 11.5% associate stake in Bangkok Dusit Medical Services?

• Indonesia's Transport Ministry suspended AirAsia's Surabaya-Singapore flight

• Glove makers expect competition in nitrile glove segment to intensify this year

• Maybank set base rate at 3.2%

• Paramount Corp buying a 96ha land in Sepang for RM227.3m

• US Fed could raise interest rates in 1H15, says Cleveland Fed President

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,650

1,700

1,750

1,800

1,850

1,900

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

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FBMKLCI

1752.77 -8.48pts -0.48%Jan Futures Feb Futures

1745.5 - (-0.31% ) 1746 - (1.00% )———————————————————————————

Gainers Losers Unchanged394 312 286

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Turnover1075.77m shares / RM921.654m

3m avg volume traded 1841.67m shares

3m avg value traded RM1895.63m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,753 3,371 5,243 1,498 23,858 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,752.77 (0.5) (0.5)

FBM100 11,776.58 (0.3) (0.3)

FBMSC 15,097.94 0.4 0.4

FBMMES 5,710.08 1.0 1.0

Dow Jones 17,832.99 0.1 0.1

NASDAQ 4,726.81 (0.2) (0.2)

FSSTI 3,370.59 0.2 0.2

FTSE-100 6,547.80 (0.3) (0.3)

SENSEX 27,887.90 1.4 1.4

Hang Seng 23,857.82 1.1 1.1

JCI 5,242.77 0.3 0.3

KOSPI 1,926.44 0.6 0.6

Nikkei 225 17,450.77 (1.6) 0.0

PCOMP 7,230.57 0.6 0.0

SET 1,497.67 (0.0) 0.0

Shanghai 3,234.68 2.2 0.0

Taiwan 9,307.26 0.4 0.0————————————————————————————————

Close % chg Vol. (m)

MUI 0.320 6.7 72.4

PAN MALAYSIA 0.365 9.0 42.5

MINETECH 0.125 4.2 40.6

JOBSTREET 0.500 6.4 27.9

SUMATEC 0.210 2.4 26.5

KTN 0.350 22.8 23.3

TIGER SYNERGY 0.140 7.7 22.5

KRONOLOGI ASIA 0.235 0.0 18.0————————————————————————————————

Close % chg

US$/Euro 1.1915 (0.73)

RM/US$ (Spot) 3.5165 (0.03)

RM/US$ (12-mth NDF) 3.6326 0.72

OPR (% ) 3.23 0.00

BR (% , CIMB Bank) 4.00 0.00

GOLD ( US$/oz) 1,189.83 0.05

WTI crude oil US spot (US$/barrel) 52.69 (1.09)

CPO spot price (RM/tonne) 2,250.00 (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

January 5, 2015

2

Global Economic News

The US Institute for Supply Management (ISM) purchasing managers’ index (PMI) fell to 55.5 in Dec (58.7 in Nov). For the year, the PMI averaged 55.8, the best full year reading after the 2007-09 recession. (WSJ)

The US Markit manufacturing Purchasing Managers’ Index (PMI) fell to an 11-month low of 53.9 in Dec (54.8 in Nov). (Bloomberg)

US construction spending fell 0.3% mom in Nov (+1.2% mom in Oct). (AFP, Bloomberg)

Low inflation and the lack of clear signals that prices will head higher are compelling reasons for the US Federal Reserve to exercise patience on raising interest rates, Federal Reserve Bank of Boston President Eric Rosengren said. “I believe the continued very low core inflation and wage growth numbers provide ample justification for patience,” he said. (Bloomberg)

The US Federal Reserve could start raising interest rates in the first half of 2015, as US economic growth picks up, Cleveland Fed President Loretta Mester said. She expects the pace of US expansion to strengthen to 3% this year, as oil prices provide a boost. (WSJ)

European Central Bank (ECB) President Mario Draghi gave his strongest signal yet that the ECB is likely to start large-scale government-bond purchases by saying he can’t rule out deflation in the euro area.

“The risk cannot be entirely excluded, but it is limited,” he said. “We have to act against such risk.” (Bloomberg)

The euro zone final Markit Manufacturing PMI came in at 50.6 in Dec (50.1 in Nov). (CNBC)

India is considering a proposal to create a holding company for the government’s stakes in 27 state-owned banks, a move that may make it easier to raise capital as they struggle with the lowest profitability in at least nine years. (Bloomberg)

The seasonally adjusted HSBC India Manufacturing PMI rose to 54.5 in Dec (53.3 in Nov). (WSJ)

The HSBC/Markit manufacturing purchasing managers' index (PMI) for South Korea rose to 49.9 in Dec (49.0 in Nov). (Star)

Singapore's GDP was up 1.5% yoy in 4Q14 (+2.8% yoy in 3Q14) and grew 1.6% qoq saar in 4Q14 (+3.1% qoq saar in 3Q14). (CNBC, Bloomberg)

Singapore private home prices fell by 1.0% qoq in 4Q14 (-0.7% qoq in 3Q14). For the whole of 2014, prices fell by 4.0%. (Reuters)

Daybreak│Malaysia

January 5, 2015

3

Indonesian CPI rose 8.36% yoy in Dec (+6.23% yoy in Nov). Core prices rose 4.93% yoy in Dec (+4.21% yoy in Nov). (Financial Times, Bloomberg)

Indonesia's exports fell 14.57% yoy in Nov (-2.23% yoy in Oct) and imports declined 7.31% yoy in Nov (-2.21% yoy in Oct). Trade balance swung to a deficit of US$426m in Nov (US$21m surplus in Oct). (Financial Times, Bloomberg)

The HSBC PMI for Indonesia’s manufacturing sector fell to 47.6 in Dec (48.0 in Nov), the lowest reading in survey history. (RTT)

Effective 1 Jan 2015, the basic prices of all fuel oils (BBM) will be determined by the Indonesian government, including that of non-subsidized RON 92 Pertamax gasoline, the energy ministry stated. Earlier, the prices of non-subsidized RON 92, RON 95, and diesel oils were entirely under the authority of retail companies. (Antara News)

Malaysian Economic News

Rises in fuel cost usually lead to higher cost of food in eateries but there has been no corresponding drop in the prices of food in restaurants, coffee shops and stalls in spite of the much lower prices of fuel. Operators are blaming this on suppliers charging the same rates while they in turn point their fingers at transporters.

The Pan–Malaysia Lorry Owners’ Association (PMLOA) has urged its members to follow the current trend in diesel prices to adjust transportation charges. However, its president Jong Foh Jit said the margin of adjustment could not be indicated because of restrictions set by the Malaysian Competition Commission (MYCC). The descending price of diesel is based on the general trend of global crude oil price but how long this trend will last remains unknown,” he said. (The Star)

The government will utilise surplus revenue of RM10bn from the Goods and Services Tax (GST) to build basic facilities in states ravaged by the floods.

Deputy Finance Minister Datuk Ahmad Maslan said the government is expected to earn a revenue of RM23bn compared to RM13bn, after the GST is enforced in Apr. Ahmad said without the GST, it would be difficult for the government to cover contingency expenses needed to restore facilities destroyed by disasters.

Flood victims need not worry as the government will help, including hastening the payment of schooling aid this month, the 1Malaysia People's Aid (BR1M) by the middle of this month, and the relocation aid to be announced soon. (Bernama)

Communications and Multimedia Minister Datuk Seri Ahmad Shabery Cheek has suggested that the government consider the need of having flood insurance policy for the people to protect their welfare in times of natural disasters. (Bernama)

Daybreak│Malaysia

January 5, 2015

4

The rise in prices of vegetable and fish in several areas especially in flood-hit states is expected to be resolved in less than three months.

Agriculture and Agro-Based Industry Minister Datuk Seri Ismail Sabri Yaakob said the ministry had imported supplies of vegetables and fish from neighbouring countries to overcome shortage and to stabilise food prices. He did not refute the price of vegetables in flood hit states had increased by 70%. Fama and the National Fishermen Association (Nekmat) would be selling goods at low prices after the floods, in an effort to stabilise prices. (Bernama)

The Government will place more emphasis on small and medium enterprises (SMEs) in a bid to develop the sector and ensure businesses are aware of the available assistance and aid, said Minister in the Prime Minister's Department Datuk Dr Wee Ka Siong.

“We need to increase the export value to 25% and boost employment rate of SMEs up to 62% instead of the current 59% so that the Government’s vision of achieving a high-income nation can be realised,” he said, adding that a Secretariat of the Advancement of Malaysian Entre­preneurs (SAME) had been set up in the Prime Minister’s Department to focus on providing relevant information to the SMEs. (Star)

The ringgit dropped to the weakest level in more than five years as falling crude oil prices and a rising dollar sapped demand for the Malaysian currency.

The ringgit fell 0.6% to 3.5165 a dollar in Kuala Lumpur, taking the week’s loss to 0.7%, according to data compiled by Bloomberg. The currency dropped to 3.5208 earlier, the lowest level since Sep 2009. (Bloomberg)

Political News

Prime Minister Najib Abdul Razak has been warned of the consequences of amending the Sedition Act 1948 by the Umno-led government, in order to make it unlawful for the people of Sarawak and Sabah to exercise their legitimate right in voicing their grievances over what they see as the failure of the promises of Malaysia to uphold civil liberties and democratic freedom.

"Any such amendment shall constitute a violation of the people's intrinsic rights, terms and conditions of the Malaysia Agreement 1963 and the democratic basis for the formulation of Malaysia.

"The amendment shall be 'utra vires' without prior consultation with the people of Sarawak and Sabah, and also that the Sedition Act 1948 is an outdated British colonial law which has no place in a modern nation with respect for human rights and values."

These are parts of the resolution adopted by some 100 concerned Sarawakians who were present at a public forum at a hotel in Kuching. The forum was organised by civic groups of concerned Sarawakians to discuss the legal issues and implications of the Sedition Act 1948. (Malaysiakini)

The time has come for Umno and Barisan Nasional (BN) to choose between Datuk Seri Najib Razak and Putrajaya, said Datuk A.kadir Jasin, as he turned the screws on the leadership of the prime minister.

In castigating Najib for his "golf diplomacy" while over 200,000 people were displaced in the biggest flood ever to inundate Malaysia in decades, he said a change has to happen, or face the risk of seeing the ruling pact "succumb to old age".

Daybreak│Malaysia

January 5, 2015

5

"Like the Romans who had to choose between Caesar and Rome, the time has come for Umno and BN to choose between Mohd Najib and Putrajaya," he wrote on his blog.

In using the Malay proverb "sekali air bah, sekali pasir berubah" to stress his point, the former group editor-in-chief of New Straits Times said if the saying holds true, he believed the wave of change will get stronger.

"Umno has to do something about its president and prime minister if it wants to stop the situation from getting worse. Like the sandbank, it could be swept away the next general elections." (Malaysian Insider)

Eight aides of Tan Sri Abdul Khalid Ibrahim will be asked to return the RM2.6m "golden handshake" they received last November from the former Selangor menteri besar in his last days in office. Selangor Menteri Besar Mohammed Azmin Ali said a notice would be issued by Selangor Menteri Besar Incorporated (MBI) after an investigation found violations in terms of procedures and financial regulations when the payment was made to the eight. (Malaysian Insider)

The decision on the final appeal by Opposition leader Datuk Seri Anwar Ibrahim on the charge of sodomising his former aide Mohd Saiful Bukhari Azlan six years ago, is expected to be delivered this month. Lead prosecutor Tan Sri Muhammad Shafee Abdullah said that he should have got the decision date sooner, but it might have been delayed due to several other factors. "Well the Justices should be giving us a hint (on the decision date). There is a possibility all five of them are writing their own judgement.

"This could result in a delay as all five are supposed to have a meeting to deliberate before coming to a decision," he said. Shafee, however, felt confident that a decision could be reached by the end of the month as he felt the panel of Justices would not be delaying the decision any further. (The Rakyat Post)

Corporate News

Malayan Banking Bhd (Maybank) has set a group-wide base rate at 3.2%, effective Jan 2, 2015. President and CEO of Maybank, Datuk Abdul Farid Alias said in a statement on Friday, the base rate will replace the base lending rate (BLR) or base financing rate (BFR) for Islamic financing, as the main reference rate for new retail floating rate loans, in accordance with the new reference rate framework introduced by Bank Negara Malaysia.

He said the base rate was determined based on the benchmark cost of funds of Maybank and Maybank Islamic, as well as the Statutory Reserve Requirement (SRR).

In addition, other components of loan pricing such as borrower credit risk, liquidity risk premium and operating costs will be reflected in a spread above the base rate. (Sun)

Pelaburan Hartanah Nasional Bhd (PHNB) is now wholly owned by Permodalan Nasional Bhd (PNB) after PNB acquired the remaining 30% stake from Malayan Banking Bhd (Maybank) last month. PNB said the purchase of the remaining 300,000 ordinary shares held by Maybank was completed on Dec 29. “With this development, PNB now holds 100% of PHNB’s overall issued and paid-up capital,” it said. PHNB manages Amanah Harta Tanah PNB (AHP) and PNB Property Trust (PPT), it said. (BT)

Daybreak│Malaysia

January 5, 2015

6

IJM Corporation has secured a RM538.5m contract to complete the superstructure works for a the proposed mixed development known as Puteri Cove Residences in Johor. In an announcement, IJM said it had accepted the letter of award from NRY Architects Sdn Bhd on behalf of Pearl Discovery Development Sdn Bhd to undertake the project. The construction period is 33 months.

Under the contract, IJM will build three blocks of 32-storey serviced apartments (998 units), one block of five-storey small office-home offices (56 units), serviced apartment facilities, two multi-storey car park podiums, two lobbies and a two-storey retail centre. (Sun)

Iskandar Waterfront Holdings Sdn Bhd (IWH), which had postponed what would have been one of the country's largest IPOs once, had decided to put the plan on the back burner indefinitely, said sources. IWH had initially targeted to be listed on Bursa Malaysia by end of 2013 or early 2014. "The [stock] market is still soft. The IPO will be delayed again, but IWH will be listed eventually, The progress of the listing is around 80%. Most of the procedures are preparations are in place." (Financial Daily)

IHH Healthcare is believed to be looking at acquiring an 11.5% associate stake in Bangkok Dusit Medical Services Pcl (BDMS), the largest hospital operator listed on the Stock Exchange of Thailand, to gain a foothold in Thailand, sources said. It is understood that the acquisition could be funded by a combination of cash and issuance of new shares.

The 11.5% stake in BDMS has a market value of 30.6bn baht (RM3.27bn) based on the last closing price of the company’s shares at 17.20 baht. “IHH has been wanting to gain an entry into Thailand and this move would give it an instantaneous exposure to the country. Acquisition of an entire stake can take longer and will be more tedious in regulatory terms,” the source said. (StarBiz)

Malaysian glove makers expect competition in the nitrile glove segment to intensify this year and are bracing themselves for a price war that will result in thinner margins. "In an increasingly competitive environment, fully passing on cost increases is more difficult," Hartalega Holdings Bhd managing director Kuan Mun Leong said. Top Glove Corp Bhd also expects challenging business environment in 2015 for the same reason. (Financial Daily)

Palm oil refiners facing a margin squeeze from the recent imposition of the zero crude palm oil (CPO) export tax are bracing for an extension of the zero duty, which is expected to remain up till next month. This is because the threshold price of RM2,250 per tonne for CPO to be taxed is not likely to be breached in the coming months, according to industry experts.

Palm Oil Refiners Association of Malaysia (Poram) chief executive officer Mohammad Jaaffar Ahmad told StarBiz that many palm oil refiners were experiencing negative margins, especially “when the zero CPO export duty was declared in Malaysia and Indonesia.” Currently, the differential price of refined, bleached and deodorised (RBD) palm olein over CPO is around RM70 per tonne on average.

“Once you’ve factored in the refining and fractionation costs, this margin will disappear and go into negative territory. The margins have been bad for the last three to four months, and will continue to be so in the first quarter of this year if the CPO prices continue to be dampened and demand does not increase quickly,” explained Jaaffar.

Daybreak│Malaysia

January 5, 2015

7

He pointed out that Poram members were “resilient refiners”, and that although there were no reports of plant closures so far, “many are operating at below optimal capacity to cut losses”. (StarBiz)

Indonesia's Transport Ministry said it had suspended Indonesia AirAsia's Surabaya-Singapore flight because it had apparently operated the service beyond the duration of its licence. "As of 2 January 2015, the licence of Surabaya-Singapore (return) route to Indonesia AirAsia is temporarily frozen until after there is a result of evaluation and investigation," said spokesman Julius Adravida Barata. The authorities were also investigating the possibility that the pilot, Captain Irianto, did not ask for a weather report from the meteorological agency at the time of takeoff. Pilots were required to do so before flying.

AirAsia wasn’t authorized to fly from Surabaya to Singapore on Sundays, the day the accident occurred, the Indonesian transport ministry said yesterday. The company only had permission to fly between Surabaya and Singapore on four other days of the week, according to the ministry. If AirAsia flew on a day when it wasn’t permitted, “then the onus falls not only on the airline but also on the regulator,” Shukor Yusof, founder of aviation research firm Endau Analytics, said.

Singapore had authorized AirAsia to run daily flights between Surabaya and the city-state during the winter season under a bilateral air services agreement, according to a joint statement today from Singapore’s aviation regulator and airport operator. (WSJ, Bloomberg)

Almost an entire plane-load of passengers refused to re-board an AirAsia Indonesia jet after one of the engines struck a problem as it started to taxi at Surabaya airport, it was reported. The aircraft had taxied just 3 metres at Surabaya’s Juanda International Airport when one of the engines died with a loud bang, Indonesia’s Metro TV reported. The plane, bound for Bandung, Indonesia, made it back to the gate without any further problems and the 120 passengers were asked to disembark.

Passenger Yusuf Fitriadi told the tv station that a man wearing a pilots’ uniform told passengers that the starter monitor had malfunctioned. ‘The plane was ready and moved, but suddenly a loud sound was heard, the sound of the engine disappeared and the plane moved backwards,’ said Mr Fitriadi. ‘We were shocked and panicked.’ Mr Yusuf said the airline told passengers later that the flight would be resumed after the problem had been addressed.

But he claimed that about 90% of the passengers refused to get back on board, fearing that the fault would re-occur during the flight. Those who declined to get back on the plane had their fares refunded, Metro TV said.

"It's not that the engine failed. The plane wanted to take off but the APU (auxiliary power unit), which is the equipment that helped to start the engine, suddenly shut down," Raden Achmad Sadikin, director of Safety and Security at Indonesia AirAsia, said. The plane later landed safely at its destination in West Java after undergoing a check, Indonesia AirAsia CEO Sunu Widyatmoko was quoted by local media as saying. (DailyMail, ABC)

Berjaya Land Bhd (BLand), controlled by tycoon Tan Sri Vincent Tan Chee Yioun with a 73.17% stake, has aborted a plan to sell of its 70% stake in Berjaya (China) Great Mall Co Ltd (GMOC), which is developing the RM7.5bn Great Mall of China project in Hebei Province, China, to Hong-Kong listed Carnival Group International Holdings Ltd. In a filing with Bursa Malaysia, BLand said the Memorandum of Understanding (MoU) had lapsed on Dec 31, 2014 and the parties are no longer obligated to proceed with the proposed disposal of equity interest. (Financial Daily)

Daybreak│Malaysia

January 5, 2015

8

Paramount Corporation Bhd is buying a 96ha freehold land in Sepang from NCT United Development Sdn Bhd for RM227.3m. The acquisition will enable Paramount to strengthen its total gross development value to RM9.1bn from RM1.1bn at present. The company said the land would be developed over eight years from early 2016.

“This acquisition comes at a time when the company is gearing itself for a new phase of growth. Our future growth will be anchored on a strategy of balancing our land-bank to cater to different market environments,” says Paramount CEO Jeffrey Chew. (StarBiz)

Kanger International plans to raise up to RM100m via a redeemable convertibles notes (RCN) programme for expansion into property investment and management. “The proceeds will be used to fund the expansion of dealerships, acquisition of land and construction of a commercial building, pursuant to the proposed diversification into property investment and management,” its MD, Leng XingMin said in a statement. He said the diversification of the group’s principal activities was in line with its long-term business strategy to strengthen its income streams. (BT, Bernama)

Sentoria Group is planning to buy three parcels of freehold land in Bandar Amanjaya, Kedah, from Ideal Appraisal Sdn Bhd for RM46.44m. In a filing with Bursa Malaysia last Friday, Sentoria said its 75%-owned subsidiary, Sentoria Utara Sdn Bhd, has signed a sale and purchase agreement with Ideal Appraisal for the proposed acquisition of the plots of land totalling 304 acres. The purchase is expected to be completed in the first quarter of 2016. The pieces of land adjoin each other and are situated within 9.2km from the Sungai Petani Utara toll at Kuala Muda, Kedah, next to Ambangan Heights. (Sun)

Bank Islam Malaysia is offering a moratorium of up to six months for its financing products' monthly installment payments to flood-affected customers. The financing products include Personal Financing-i, Vehicle Financing-i and Home Financing-i, Bank Islam said. The assistance is provided under the 'Prihatin Programme', which aims to ease the financial burden of its customers in addition to supporting them in performing banking facilities during an emergency.

Under the programme, Bank Islam will also waive any charges imposed on applications for replacement for Bank Islam debit card and passbook. (Bernama)

Superlon Holdings Bhd plans to invest RM12m in the next two years to expand its production capacity and capabilities, of which the details have yet to be finalised. Superlon has a market capitalisation of RM57.6m and its core business is divided into two segments, namely insulation products and trading, respectively. The former manufactures insulation products from nitrile butadiene rubber (NBR) foam, while the latter trades accessories, parts and products related to heating, ventilation, air conditioning and refrigeration systems (HVAC&R).

Its generous dividend payments has put the low-profile manufacturer of insulation products on the radar of some investors. According to Bloomberg’s data, Superlon’s shares have a dividend yield of 5.52%.

“We have declared dividends in the past and aim to continue the trend should the financial position and plans of the company at the relevant time permits it,” managing director Jessica Liu said.(StarBiz)

Daybreak│Malaysia

January 5, 2015

9

The number of companies registered for the Goods and Services Tax (GST) stood at 300,730 when the registration exercise ended on Dec 31, 2014, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah. Of the total, 84% were mandatory registration while voluntary GST registration accounted for the remaining 16%.

“The number of GST-registered companies have surpassed the government’s initial expectation,” he said in a statement. Husni also said the number of GST-ready small and medium enterprises stood at 266,003. (BT)

City-Link Express (M) Sdn Bhd, which has an annual turnover of more than RM300m, is mulling over a listing on the Main Market of Bursa Malaysia within the next three years. Besides being able to tap into the equity market to raise funds, the company also hopes to further strengthen confidence among its investors, stakeholders and customers by being a listed entity. “Being a listed entity will further boost customers’ confidence in us, especially when we want to penetrate South-East Asian markets that we are not in yet,” said founder and managing director Datuk David Tan.

Currently, beyond Malaysia, it has operations in Singapore, Thailand, Indonesia, Vietnam, Hong Kong and China. Asked about its competitive edge, Tan said the company had been growing organically for the past 25 years and that it would use the proceeds from the listing to invest in technology and infrastructure to better serve its customers.

City-Link commands a 13% market share of the domestic courier service in Malaysia. (StarBiz)

Daybreak│Malaysia

January 5, 2015

10

BMSB: Changes in shareholdings

Type of No of Ave Price

2-Jan-15 Date transaction securities Company (RM)

EPF 26/12-29/12 Disposed 2,667,600 AXIATA GROUP

EPF 29/12 Disposed 2,201,400 UEM SUNRISE

EPF 29/12 Disposed 2,146,700 FELDA GLOBAL VENTURES

EPF 29/12 Disposed 1,105,900 UMW HOLDINGS

EPF 29/12 Disposed 800,000 MAXIS

EPF 29/12 Disposed 787,800 PUBLIC BANK

EPF 29/12 Disposed 555,200 HONG LEONG BANK

EPF 29/12 Disposed 500,000 DRB-HICOM

EPF 29/12 Disposed 294,400 SUNWAY BERHAD

EPF 29/12 Disposed 200,000 IJM CORPORATION

EPF 24/12-29/12 Disposed 132,400 CAHYA MATA SARAWAK

EPF 29/12 Disposed 130,000 AFFIN HOLDINGS

EPF 29/12 Disposed 116,300 AEON CO. (M)

EPF 29/12 Disposed 74,800 TAN CHONG MOTOR

EPF 29/12 Disposed 52,600 TOP GLOVE

EPF 29/12 Disposed 31,700 MEDIA PRIMA

EPF 29/12 Disposed 6,700 AMMB HOLDINGS

Kumpulan Wang Persaraan 24/12-26/12 Disposed 6,540,800 FELDA GLOBAL VENTURES

EPF 29/12 Acquired 2,500,000 DIGI.COM

EPF 29/12 Acquired 1,776,200 AIRASIA

EPF 29/12 Acquired 1,450,000 SAPURAKENCANA PETROLEUM

EPF 26/12 Acquired 1,000,300 BUMI ARMADA

EPF 29/12 Acquired 1,000,000 TELEKOM MALAYSIA

EPF 29/12 Acquired 321,100 SP SETIA

EPF 29/12 Acquired 293,400 TIME DOTCOM

EPF 29/12 Acquired 230,000 DIALOG GROUP

EPF 29/12 Acquired 226,500 MAH SING GROUP

EPF 26/12-29/12 Acquired 223,800 MALAYAN BANKING

EPF 26/12 Acquired 110,800 YTL CORPORATION

EPF 29/12 Acquired 107,000 IGB CORPORATION

EPF 29/12 Acquired 14,500 MBM RESOURCES

EPF 29/12 Acquired 10,100 NESTLE (MALAYSIA)

Skim Amanah Saham Bumiputera 30/12 Acquired 1,815,500 TELEKOM MALAYSIA

Skim Amanah Saham Bumiputera 29/12-30/12 Acquired 1,789,100 AXIATA GROUP

Skim Amanah Saham Bumiputera 29/12 Acquired 750,000 UMW HOLDINGS

Skim Amanah Saham Bumiputera 30/12 Acquired 500,000 GAMUDA

Skim Amanah Saham Bumiputera 29/12 Acquired 3,500 FRASER & NEAVE 

Kumpulan Wang Persaraan 24/12-26/12 Acquired 4,578,700 TDM BERHAD

Kumpulan Wang Persaraan 26/12 Acquired 461,900 IGB REIT

Lembaga Tabung Haji 26/12-31/12 Acquired 3,110,900 MMC CORPORATION

Lembaga Tabung Haji 26/12-31/12 Acquired 2,265,800 GAS MALAYSIA

Lembaga Tabung Haji 22/12-30/12 Acquired 862,300 WEIDA (M)

Lembaga Tabung Haji 19/12-31/12 Acquired 572,500 SURIA CAPITAL

Lembaga Tabung Haji 26/12-29/12 Acquired 204,900 YLI HOLDINGS

Lembaga Tabung Haji 19/12 Acquired 175,000 MRCB

Lembaga Tabung Haji 30/12-31/12 Acquired 12,000 ADVENTA

UMW HOLDINGS BERHAD 31/12 Acquired 1,000,000 UMW OIL & GAS

WELLINGTON MANAGEMENT CO, LLP 26/12-30/12 Acquired 319,129 AIRASIA

Aberdeen Asset Management PLC 29/12-31/12 Acquired 23,100 ORIENTAL HOLDINGS

TOP GLOVE 2/1 Shares Buy Back 435,100 TOP GLOVE 4.54

WAH SEONG CORPORATION 2/1 Shares Buy Back 54,400 WAH SEONG CORPORATION 1.21 SOURCES: BMSB

BMSB: ESOS & others

5-Jan-15 No Of New Shares Date of Listing Nature of transaction

UCHI TECHNOLOGIES 37,000 05-Jan-15 Exercise of ESOS SOURCES: BMSB

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BMSB: Off-market transactions

2-Jan-15 Vol

SANICHI 12,500,000

JIANKUN-WA 3,750,000

HARNLEN 2,783,500

MTRONIC 2,560,000

DOLMITE 2,100,000

BLDPLNT 1,402,500

YNHPROP 910,746

MLGLOBAL 819,516 Notes:CN-Crossing deal on board lots, MN-Married deal on board lots, MO-Married deal on odd lots

SOURCES: BMSB

BMSB: Entitlements & trading rights

5-Jan-15 Ann Date Entitlement Ex-date Entitlement

MY E.G. SERVICES 30-Oct-14 Bonus issue 1:1 8-Jan-15 12-Jan-15 SOURCES: BMSB, TE: Tax Exempt

BMSB: Dividends

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

UMW HOLDINGS  2nd interim dividend - single tier 15.00 17-Dec-14 5-Jan-15 7-Jan-15 20-Jan-15

BERJAYA FOOD 1st interim dividend - single tier 2.50 9-Dec-14 6-Jan-15 8-Jan-15 22-Jan-15

MY E.G. SERVICES Final dividend - single tier 2.00 24-Nov-14 6-Jan-15 8-Jan-15 30-Dec-14

GAMUDA 1st interim dividend - single tier 6.00 16-Dec-14 12-Jan-15 14-Jan-15 28-Jan-15

TOP GLOVE  Final dividend - single tier 9.00 11-Nov-14 12-Jan-15 14-Jan-15 29-Jan-15

BENALEC HOLDINGS Final dividend - single tier 0.30 27-Nov-14 26-Jan-15 28-Jan-15 23-Feb-15

BERJAYA SPORTS TOTO 2nd interim dividend - single tier 6.00 18-Dec-14 28-Jan-15 30-Jan-15 13-Feb-15

FRASER & NEAVE Final dividend - single tier 33.00 26-Dec-14 28-Jan-15 30-Jan-15 26-Feb-15

KUALA LUMPUR KEPONG Final dividend - single tier 40.00 19-Nov-14 19-Feb-15 23-Feb-15 17-Mar-15 SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

5-Jan-15 Ann Date Proposed

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

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

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

TH HEAVY ENGINEERING 24-Sep-14 Private placement of up to 10% of the issued shares of THHE

TH HEAVY ENGINEERING 3-Oct-14 Rights issue with bonus issue, 1 bonus issue : 5 Rights shares

MAH SING GROUP 20-Nov-14 Rights issue with Warrants; Bonus issue 1:4

MALAYSIA AIRPORTS 28-Nov-14 Right issue 1:5 SOURCES: BMSB

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Corporate Actions

January 2015

SUN MON TUE WED THU FRI SAT

1 2 3

New Year Prophet Muhammad’s Birthday

4 5 6 7 8 9 10

Trade Balance, Imports, Exports, Foreign Reserves

Top Glove 1Q briefing & 16th AGM

IPI, Manufacturing Sales

11 12 13 14 15 16 17

18 19 20 21 22 23 24

CPI Foreign Reserves (mid-month data)

25 26 27 28 29 30 31

BNM OPR

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

February 2015

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6 7

Federal Territory Day Replacement Holiday Thaipusam Trade Balance, Imports, Exports, Foreign Reserves

8 9 10 11 12 13 14

IPI, Manufacturing Sales

GDP, BoP Current Account Balance

15 16 17 18 19 20 21

CPI Chinese New Year Chinese New Year 2nd Day

22 23 24 25 26 27 28

Foreign Reserves (mid-month data)

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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DISCLAIMER #05

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guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Neither CIMB nor any of its affiliates nor its related persons shall be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.

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CIMB Securities (Thailand) Co., Ltd. may act or acts as Market Maker and issuer including offering of Derivative Warrants Underlying securities of the following securities. Investors should carefully read and study the details of the derivative warrants in the prospectus before making investment decisions.

AAV, ADVANC, AMATA, ANAN, AOT, AP, ASP, BANPU, BAY, BBL, BCH, BCP, BEC, BECL, BGH, BH, BIGC, BJC, BJCHI, BLA, BLAND, BMCL, BTS, CENTEL, CK, CPALL, CPF, CPN, DCC, DELTA, DEMCO, DTAC, EARTH, EGCO, ERW, ESSO, GFPT, GLOBAL, GLOW, GUNKUL, HEMRAJ, HMPRO, INTUCH, IRPC, ITD, IVL, JAS, KBANK, KCE, KKP, KTB, KTC, LH, LOXLEY, LPN, M, MAJOR, MC, MCOT, MEGA, MINT, NOK, NYT, PS, PSL, PTT, PTTEP, PTTGC, QH, RATCH, ROBINS, RS, SAMART, SCB, SCC, SCCC, SIRI, SPALI, SPCG, SRICHA, STA, STEC, STPI, SVI, TASCO, TCAP, TFD, THAI, THCOM, THRE, THREL, TICON, TISCO, TMB, TOP, TPIPL, TTA, TTCL, TTW, TUF, UMI, UV, VGI, TRUE, WHA.

Corporate Governance Report:

The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information.

The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CIMBS does not confirm nor certify the accuracy of such survey result.

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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United Kingdom and Europe: In the United Kingdom and European Economic Area, this report is being disseminated by CIMB Securities (UK) Limited (“CIMB UK”). CIMB UK is authorised and regulated by the Financial Conduct Authority and its registered office is at 27 Knightsbridge, London, SW1X 7YB. This report is for distribution only to, and is solely directed at, selected persons on the basis that those persons: (a) are persons that are eligible counterparties and professional clients of CIMB UK; (b) have professional experience in 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.

Only where this report is labelled as non-independent, it does not provide an impartial or objective assessment of the subject matter and does not constitute independent "investment research" under the applicable rules of the Financial Conduct Authority in the UK. Consequently, any such non-independent report will not have been prepared in accordance with legal requirements designed to promote the independence of investment research and will not subject to any prohibition on dealing ahead of the dissemination of investment research.

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Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (Thai IOD) in 2014.

AAV – Very Good, ADVANC – Very Good, AEONTS – not available, AMATA - Good, ANAN – Very Good, AOT – Very Good, AP - Good, ASK – Very Good, ASP – Very Good, BANPU – Very Good , BAY – Very Good , BBL – Very Good, BCH – not available, BCP - Excellent, BEAUTY – Good, BEC - Good, BECL – Very Good, BGH - not available, BH - Good, BIGC - Very Good, BJC – Good, BLA – Very Good, BMCL - Very Good, BTS - Excellent, CCET – Good, CENTEL – Very Good, CHG – not available, CK – Very Good, CPALL – not available, CPF – Very Good, CPN - Excellent, DELTA - Very Good, DEMCO – Good, DTAC – Very Good, EA - Good, ECL – not available, EGCO - Excellent, GFPT - Very Good, GLOBAL - Good, GLOW - Good, GRAMMY - Excellent, HANA - Excellent, HEMRAJ – Very Good, HMPRO - Very Good, ICHI - not available, INTUCH - Excellent, ITD – Good, IVL - Excellent, JAS – not available, JUBILE – not available, KAMART – not available, KBANK - Excellent, KCE - Very Good, KGI – Good, KKP – Excellent, KTB - Excellent, KTC – Good, LH - Very Good, LPN – Very Good, M - not available, MAJOR - Good, MAKRO – Good, MBKET – Good, MC – Very Good, MCOT – Very Good, MEGA – Good, MINT - Excellent, OFM – Very Good, OISHI – Good, PS – Very Good, PSL - Excellent, PTT - Excellent, PTTEP - Excellent, PTTGC - Excellent, QH – Very Good, RATCH – Very Good, ROBINS – Very Good, RS – Very Good, SAMART - Excellent, SAPPE - not available, SAT – Excellent, SAWAD – not available, SC – Excellent, SCB - Excellent, SCBLIF – Good, SCC – Very Good, SCCC - Good, SIM - Excellent, SIRI - Good, SPALI - Excellent, STA – Very Good, STEC - Good, SVI – Very Good, TASCO – Good, TCAP – Very Good, THAI – Very Good, THANI – Very Good, THCOM – Very Good, THRE – not available, THREL – Good, TICON – Good, TISCO - Excellent, TK – Very Good, TMB - Excellent, TOP - Excellent, TRUE – Very Good, TTW – Very Good, TUF - Good, VGI – Very Good, WORK – not available.

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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.

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.

*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.