strategy 2011

Regional Market Focus

2011 Asia Equity Outlook DBS Group Research . Equity

27 December 2010

Riding the key themes in 2011

Regional Equity Strategist Joanne Goh +65 6878 5233 [email protected]

Investment Summary Page Index valuations and recommended weightings summary 2 Nine Themes for 2011 2 Macro-economic / asset allocation summary 3 High conviction picks 5 Macro Regional Strategy: Nine themes for 2011 Economy: Cutting ribbons Forex: Asia’s ascension begins

8 22 32

Regional countries HK / China: The glass is still (almost) half full Indonesia: The makeover continues Malaysia: Charting new frontiers Singapore: Bargain hopping Thailand: Re-rating should continue India: A year of rebalancing Korea: Inflation management becomes a priority Taiwan: Domestic economy on firmer footing Small / mid caps: Go with the flow

48 49 50 51 52 53 54 55 56

Regional sectors Airlines: Firm tailwinds Autos: More rational growth ahead Gaming: More excitement ahead F&B: Pricing power matters Banks: Bracing up for the next race Exchanges: Momentum driven Property: Stock picking year REITS: On a hunt for yields Coal: Focus on growth and delivery Plantations: Rosy Outlook in 2011 Steel & Metal: Focus on growth Tech: Stay mobile and go corporate Telcos: 3G and Mobile broadband Utilities/Power: Safe and sound

58 59 60 61 62 63 64 65 66 67 68 69 70 71

Country themes: Malaysia construction: MRT coming to fruition China autos: Market rewards luxury automakers Korea autos: Growth story intact Indonesia autos: Explosive growth ahead Singapore offshore marine: Renewal cycle gaining steam China/ HK Banks: Prefer large caps China Shipyards: Orders keep flowing China Telcos: Prefer equipment players China / HK Retail: Still in the spotlight China insurance: Riding up the rate cycle

74 75 76 77 78 79 80 81 82 83

Regional Earnings Guide

85

•

We have identified nine key themes in this report to guide investors through what we expect to be a mixed performance for Asian markets in 2011

•

We maintain a moderate risk stance for 1Q11 and a conservative 14% return for Asia equities for the full year

•

Growth outlook is even in Asia - no country will be left behind. Asia is headed back to a period of fast growth (akin to the early –90’s) but with a more pleasant end game

•

For the astrologists amongst us, the Year of the Rabbit has tended to be a less volatile year than its predecessor (see chart below and main body of report)

•

China inflation, policy intervention, USD/EUR confidence crisis and rising geopolitical tensions are tangible risks in 2011

•

We recommend investors to focus on yield plays and plays on our nine key themes contained in this report

•

Overweight Thailand, Indonesia and Taiwan; Underweight China, Hong Kong and Korea; Neutral in India, Malaysia, and Singapore

•

Industrials, commodities and consumer discretionary are our preferred sectors

•

High conviction stocks within our overweight markets include: Kasikorn Bank, Thai Oil, PTT Chemical, LPN Dev., Amata, Thai Airways, Major Cineplex, Thai Vegetable Oil, Adaro Energy, Astra Intl, BRI. (Please see inside for additional thematic / stock recommendations in each market) Fig. 1: Asia ex-Japan Index, log scale 1600 1400 1200 1000 800 600 400

200

20 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 0911

Source: Datastream. Return in USD using Datastream Asia ex-Japan total market index from 1973 - current. Vertical lines mark beginning of Year of Rabbit in 1975, 1987 and 1999. “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.”

www.dbsvickers.com Refer to important disclosures at the end of this report sa: JC

“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

Investment Summary Index valuations and recommended weightings summary Returns in MSCI Asia ex-Japan were held back in 2010 by underperformance in MSCI Hong Kong, China, Singapore, Taiwan and Korea, all still between 5-36% from their peaks. MSCI China is still 56% off its previous high. The smaller ASEAN markets and India have already touched pre-crisis highs, brought about by strong liquidity flows diverted into these markets. Korea and Taiwan offer some potential of hitting new highs as they are just 5% and 14% respectively off their highs, whilst valuations are still cheap. The following would be our recommended weightings by market: Thailand Indonesia Taiwan China Korea India Singapore Malaysia

Overweight (improving economy, improving political environment) Overweight (stable economy, possible rerating) Overweight (stronger outlook, favourable political climate) Underweight (tightening concerns, policy risk) Underweight (rising political tensions). Neutral (falling inflation) Neutral (uncertainties over rate hikes and inflation) Neutral (fairly valued)

Nine Themes for 2011 We are advising investors to focus on the following nine sustainable investment themes to ensure outperformance in 2011.

Theme #1 - Asia’s consumerism Consumer affluence and energy consumption are long-term structural themes in Asia, with its a large population base, favorable demographics, urbanization and rising income levels. Low unemployment rates, rising income levels, cheap credit bolstered by low interest rates and strong bank liquidity all bode well for discretionary retail spending.

Theme #2 - China’s insatiable quest for energy Energy demand should remain robust gong into 2011. Although oil inventory levels suggest oil prices should remain stable near term, we are, however, forecasting a higher US$80 -100 per barrel in 2011 in line with our economist’s view of sustained economic growth in Asia. China, with its vast fiscal reserves will continue its global quest for energy security and this will benefit the coal,

natural gas and nuclear energy sectors. Offshore oil & gas and refineries should also benefit from firmer oil prices.

Theme #3 - China's prolonged spurt on commodities. China's ever growing appetite for commodities is the key global swing factor. Even rare earth metals and nuclear reactor fuels are emerging as additional commodity themes for next year. In food based commodities, demand for meat and grain brought about by China's huge population and rapid urbanization has fed a new agricultural boom. Recent price controls in China may be difficult to apply (especially on perishables) and climate change affecting harvest and production levels should bring logistics and food processing sectors into focus.

Theme #4 - Engineering excellence in Asia Recent high profile engineering mishaps (Rolls Royce) and product recalls (Toyota) emphasise the value in reliable industrial, engineering manufacturers as well as services providers. Companies which have sound track records and leading expertise in their respective industries should therefore gain market share at the expense of lower quality players (e.g. Singapore's offshore marine and aircraft servicing sector, Korean shipbuilders. leading Chinese heavy industry and engineering companies etc)

Theme #5 - Preparing for the unexpected Three “black swan” events could trigger a return to risk aversion. The first is heightened forex volatility (on the back of a worsening Euro crisis; worse than expected USD depreciation). The second black swan could be rising political tensions in Korea. The third black and final swan could contagion from a spreading Euro crisis. If the crisis spreads to Spain, we would expect a more precipitous fall in the Euro. The occurrence of two Euro bailouts in a single year does suggest that this particular black swan cannot be ignored. As a hedge against black swan events we remind investors in this report to focus on value as well as (defensive) dividend plays in Asia

Theme #6 - Investment push In China we expect the budget for railway equipment, low cost housing, and inner city infrastructure to see sharp increases in the next 5-year plan. Malaysia’s 10th Malaysia Plan (“10MP”) to improve public transportation systems will include projects such as LRT extensions, MRT and highways, as well as the new financial district. Tax incentives and investments in the oil and gas sector by Petronas are also planned in 2011. Indonesia should continue to gain from ongoing FDI flows into coal mining and commodities.

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“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

Thailand has traditionally lagged in terms of infrastructure spending, the government is likely to tender out the ChinaThailand high speed train which will start work in 2011.Finally, in Singapore, following the completion of the two IRs, and the on-going extension of the MRT network, the recent spotlight has shifted to drainage, additional transportation systems, and medium to low cost housing to cater to Singapore’s growing population. We believe construction demand could be on the high end of the S$18bn and S$25bn 2011/12 forecast by the Building Construction Authority.

Theme #7 - Asia: Inflows and inflation, and capital controls Asian central banks/governments are likely to adopt a more measured mix of rate hikes, moderate increases in RRRs, phased currency appreciation, micro capital controls, and mild administrative measures to ward against overheating (notwithstanding the possibility of a more aggressive stance in China).

Theme #8 - Firms with pricing power Rising inflation has had a broad impact across the board on wages, higher raw material costs, foreign exchange and business operating costs. We predict a tougher operating environment next year and considerable pressure on margins. As such, we prefer companies dominant in their respective sectors, yielding stronger pricing power and economies of scale.

Theme #9 - Sector picking We expect strong overall growth in Asia next year and no country will be left behind. The growth outlook in China and US remain key macro drivers for the region. Despite continued economic growth regionally, different dynamics in each country provide for different opportunities by sector: 1.

Malaysia - infrastructure, plantations, banks

2.

Singapore - Laggard plays, offshore & marine

3.

China - Infrastructure, commodities, industrials

4.

Hong Kong - Banks

5.

Thailand - Top down macro, cheap valuations, energy, banks

6.

Indonesia - Coal, banks, consumer, mid caps

7.

Taiwan - Domestic sectors

8.

Korea - Currency watch

9.

India - 2011 wild card

Macro-economic and asset allocation overview China. We are downgrading China to Underweight mainly due to the impact of expected rate and RRR hikes, loan quota restrictions and administrative controls on food and property prices. Next year's growth is also going to be slower than this year's (9.5% vs 10%). Though real rates will remain low we do not have a hard landing view on China. Hong Kong. Hong Kong should continue to benefit from both a low interest rate environment and Hong Kong’s ongoing role as a major RMB offshore centre and gateway to China. Asset reflation will continue to be a main theme in Hong Kong with Hong Kong financials as a main beneficiary. Nevertheless, rate hikes and China policy risk underpin our Underweight stance on Hong Kong. Korea. Although Korea's inflation rate came off after October's spike up to 4.1%, it should still trend higher due to the closure of output gaps, capacity constraints, labour market tightening and rises in international commodity prices. Real rates remain negative, which give room for Korea to raise rates much more aggressively in Q1 if further evidence of a firming economy emerges. North Korea's repeated forays into South Korean territory underscore the market's PE discount to the region. Rate hikes, a slowing economy and geopolitical risk underlie our Underweight positioning in this market. Taiwan. In Taiwan the elections produced no nasty surprises with the ruling KMT winning 3 out of the 5 seats contested. In the near term we expect the overhang from the elections to be cleared and focus on ECFA benefits to resume. Taiwan's presidential elections will only be held in 2012 and we expect KMT to implement more positive policies to ensure its victory in the next election. Coupled with a more favourable economic climate, we are Overweight Taiwan in 2011. India. India is upgraded to Neutral from Underweight. India's inflation rate should drop to 6% by 1Q, giving adequate room for interest rates to subside. Singapore. Having registered 15% GDP growth this year, we forecast Singapore to grow at 7% in 2011, higher than the government's forecast of 4-6%. Singapore's October exports rebound suggested little possibility of technical recession in Singapore, and also reflected the resilience of the economy. There is upside bias for consensus earnings growth forecast of 10% for 2011 in our view. We maintain

Page 3 “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” www.dbsvickers.com

“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

our Neutral stance in Singapore, and are overweight on O&M, plantations and the gaming sectors.

environment and high growth will continue to attract investors and support our Overweight position.

Malaysia. Malaysia should continue to perform in line with the region and we advocate a Neutral weighting in 2011. Monetary policy will remain accommodative as Malaysia has hiked rates three times in 2010, ahead of the other countries. We also expect the various infrastructure projects to kick-start in 2011 to be funded by private participation.

Thailand. Thailand is largely a valuation and turnaround play on a return to political stability after suffering from political uncertainty for the past 5 years. As a reflection of its turn around potential, foreign investors bought a net US$654 million of portfolio investments after the crisis, though less than half of the amount purchased in Indonesia. We are Overweight Thailand on our view that the economic and political environment will stablise further attracting a further market re-rating.

Indonesia. An investment upgrade, positive commodity prices and a stable rupiah all point to further upside for Indonesia, and revived interest from foreign investors. We believe attractive yield spreads, a stable investment

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“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

High Conviction Stock Picks Company Big Caps (>$2bn) Keppel Corporation OCBC Singapore Airlines Gamuda Maybank Cosco Pacific MTR PICC Ping An Insurance SJM Holdings Bangkok Bank KASIKORNBANK Thai Oil XL Axiata Kia Motors Hynix Company

Exch KEP SP OCBC SP SIA SP GAM MK MAY MK 1199 HK 66 HK 2328 HK 2318 HK 880 HK BBL TB KBANK TB TOP TB EXCL IJ 000270 KS 000660 KS

SG SG SG MY MY HK HK HK HK HK TH TH TH IND KS KS

Sector Industrials Banks Consumer Services Industrials Banks Industrials Consumer services Financial Financial Consumer services Banks Banks Oil & Gas Telecommunications Consumer Goods Technology

Price 22 Dec 10 (LCY)

Target Price (LCY)

10.72 9.84 15.34 3.81 8.50 13.30 28.50 11.18 84.60 12.00 147.00 125.50 75.50 5,450 52,100 23,300

12.50 11.30 18.50 4.90 10.80 16.08 36.45 14.64 99.00 14.40 187.00 150.00 80.00 6,800 64,000 31,000

Upside (%)

% Chg -1w

% Chg since Entry Date

Date of Entry to List

Mcap US$m

3mths Avg Daily T/O US$m

17 15 21 29 27 21 28 31 17 20 27 20 6 25 23 33

1 2 -1 2 -1 0 -0 2 -2 -5 -1 -0 -6 2 1 -3

-1 7 -2 15 13 2 -2 -7 -5 -3 4 45 23 18 10 -4

29-Nov-10 15-Oct-10 3-Sep-10 28-Jun-10 12-Apr-10 6-Dec-10 6-Dec-10 8-Nov-10 15-Nov-10 6-Dec-10 23-Jul-10 1-Mar-10 15-Nov-10 4-Aug-10 8-Nov-10 22-Oct-10

13,163 25,159 14,055 2,494 19,255 4,636 20,988 4,967 31,085 8,207 9,304 9,959 5,107 5,125 17,942 11,950

41 40 21 9 22 15 15 25 125 32 25 23 30 1 146 219

Reasons for Picks / Potential Catalysts

Big Caps (>$2bn) Keppel Corporation

OCBC Bank

Singapore Airlines

Gamuda

Maybank

COSCO Pacific

MTR

PICC

Ping An Insurance

SJM Holdings

• Prefer KEPPEL for exposure to Petrobras contract wins • Keppel could win 4 to 11 rigs worth US$3.5b to US$8b from Petrobras. • We expect more contracts for KEPPEL, which has just secured a newbuild jackup rig contract from Standard Drilling with options for 2 more; its outstanding LOI with Mermaid for 2 newbuild • Strong growth potential in non-interest income (insurance and private banking), which is a key differentiating factor to its peers, could drive ROE higher. • OCBC seems more aggressive in its regional expansion plans especially in Malaysia, Indonesia and China. • OCBC's asset quality stacks up the best compared to its peers. • Rebound in earnings, driven by strong visitor arrivals and economic recovery in Singapore. • Operating numbers remain robust, improving numbers for both cargo and passenger carriage, with high load factors. • Firm balance sheet, with net cash of over S$3 per share. • RM36bn MRT project, a key milestone catalyst easily doubling orderbook with another 10 years earnings visbility. • Excellent proxy to Vietnam's positive long term structural shift in property market with RM16bn GDV (12% of SOP). • Resolution on Selangor State Water restructuring soon could see Gamuda reaping >RM600m in cash or RM0.28/share. • Strong domestic franchise for consumer and business loans, placing it in a solid position to ride on the economic recovery. Largest market share (22%) in domestic deposits. • Indonesian operation poised for robust 20% loans growth and 35% 3-year earnings CAGR. Sharp improvement emerging. • Major laggard being the only large cap bank trading below +1 SD. • Turnaround of new ports, driven by volume ramp up and potential tariff hike. • Profitablity from its container leasing and manufacturing businesses are expected to be further improved in 2011. • Undemanding valuation at 13x FY11 P/E and 1.2x FY11P/B. • Recurrent earnings going from strength to strength. • Good hedge against inflation. • Exploiting the value of land bank through skillful land premium negotiation. • Structural turnaround in underwriting to sustain. • A-share revival will be icing on the cake. • Re-rating to continue on improved ROE. • Balanced life premium growth amidst stable new business margin. • Continual market share gain in P&C market with improved combined ratio. • SDB deal resolution cleared overhang. • Promoting new premium mass table area in the Grand Lisboa that will open before the Chinese New Year, we expect solid performance and should see margin expansion. • Good defense against any VIP weakening with its well diversified VIP and Mass portfolio on the Macau Peninsula, stronghold for have highest market share of c.30% in the industry. • Strong balance sheet for potential acquisitions, valuation still lowest in the sector at 10x FY11F EV/EBITDA, Maintain BUY with TP HK$14.40.

Source: Bloomberg, DBS Vickers, Hanadaetoo Securities

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“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

Company

Reasons for Picks / Potential Catalysts

Big Caps (>$2bn) Bangkok Bank

• •

KASIKORNBANK

• • • • •

Thai Oil PCL

XL Axiata

Kia Motors

Hynix

• • • • • • • • • • • •

Higher loan growth of 6.0%, led by stronger demand for corporate and SMEs, with NIM at 3.0% and 7% fee income growth for FY11-12F . Transforming into regional bank, with diversified loan portfolio in both domestic and international markets (17% of total loans), specifically China. Highest NPL coverage ratio of 134% in the sector and strong capital base. Maintain BUY and Bt187.00 TP. Expect strong loan growth of 9% for FY11, and 8.5% for FY12F, with leading share in high-yield SME loans segment. Sustainable high NIM at 3.9%, 18% fee income growth for FY11-12F, and good asset quality with the lowest NPL ratio at 3.18% in 3Q10. Higher ROE to16.2% in 2011 vs 12.6% in 2009, premised on K-Transformation and channel expansion projects completion in 2011-12. Tight diesel market in next few months as China cuts power supply to reduce air pollution. Diesel accounts for 41% of TOP’s refinery output. Improving outlook due to rising oil prices, strong PX spreads. BUY, with TP of Bt80/sh based on 2x P/BV; potential re-rating to catch-up with peer, PTTAR. XL is the price leader for voice and bundled plans, likely to gain revenue share from Telkomsel. The growing popularity of mobile Internet plans is the key catalyst for smaller players. Cheap Chinese handsets are helping mobile Internet in a big way. Strong balance sheet and highest EBITDA growth in the sector. While 3Q10 is characterized by Korean auto sector's continued growth story, Kia's result was particularly impressive. The stock is still grossly undervalued (FY11 P/E of 8.2x) given the strong potential for a sustainable turnaround. Sustainable earnings growth and improving balance sheet will continue to boost sentiment towards Kia shares and trigger catch up to other KOSPI listed companies' and global peers' valuations. Growth in earnings estimates of Hanwha Chemical and YeoCheon NCC (FY11E OP +8.9%, FY12E +10.1%). New businesses of solar energy, biosimilar, and battery materials. PVC facilities in China will come on stream in 2011.

Source: Bloomberg, DBS Vickers, Hanadaetoo Securities

Company Small & Mid Caps (20 years old. This implies a growing technical supply/demand mismatch amid increasingly stringent safety and environmental standards and tougher offshore conditions. Post Macondo, there has been an increased focus on safety among oil and gas companies, along with enhanced safety requirements imposed by the US government. We believe this has kick-started the renewal cycle, which was stalled by the onset of the global financial crisis. Indeed, the divergence in utilisation and day rates with preference for younger vs. older rigs has led to renewed interests among operators to seek newbuilds. Recovery in new rig orders, evidenced since 4Q10, will sustain its momentum on the back of resumed capex spending. New wings of growth from drillships and tapping on offshore wind energy potential. International drillers are scouting for deepwater rigs, including drillships. KEP and SMM have unveiled new drillship designs with ultradeepwater and drilling capabilities of up to 40,000 feet. We believe the relatively lower building and operating costs for KEP’s and SMM’s compact design differentiate them from the Korean competitors. Separately, KEP has also secured a wind farm installation vessel order of the KFELS MPSEP design to tap on the projected growth in the global offshore wind energy market. Offshore vessel operators still face headwinds from oversupply issues. While vessel operators have reported a pick up in activity levels globally, the supply situation remains unfavourable with awards of firm charters slow to materialise. Based on our estimates, utilisation rates of small and mid/large AHTS alike should recover more evidently only from 2012 onwards. Till then, we do not expect a meaningful recovery in earnings for vessel operators. Prefer shipyards to asset owners/operators. We expect yards to benefit from the asset replacement cycle, with more orders in the offing for newbuild rigs and production units. Vessel owners, on the other hand, could see flat earnings yo-y, with downside bias on poor visibility of contract coverage.

Page 78 “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” www.dbsvickers.com ed: MY sa: TW

“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

China / Hong Kong Banks

Prefer large caps

Alexander LEE, CFA +852 2971 1930 [email protected]

China CCB ICBC ABC CMB BoCom CNCB CMBC BOC Hong Kong Hang Seng BEA BOCHK

• NIM expansion and Rmb appreciation are key re-rating themes for Chinese banks in 2011

Bbg Code

Rec

Tp (LCY)

939 HK 1398 HK 1288 HK 3968 HK 3328 HK 998 HK 1988 HK 3988 HK

Buy Buy Buy Buy Buy Buy Buy Buy

8.81 7.17 4.93 24.50 10.70 6.04 8.09 4.76

11 HK 23 HK 2388 HK

Buy Hold Hold

123.60 34.00 24.60

*shown in order of preference Source: DBS Vickers

Chinese banks’ PB vs. 1-yr lending rate x

% 8.0

6.0

7.5

5.0

7.0 4.0

6.5 6.0

3.0

5.5

2.0

5.0 1.0

4.5

0.0

4.0 06

07

08

09

10

11

Average sector PB (LHS) 1-yr lending rate (RHS)

Chinese banks’ PB vs. Rmb x

US$/Rmb

6.0

0.160

5.0

0.150

4.0

0.140

3.0

0.130

2.0

0.120

1.0

0.110

0.0

0.100 06

07

08

09

10

• Prefer larger Chinese banks as they face less regulatory uncertainties • 2011 will be a year of low margins but high asset growth for HK banks Early tightening cycle is positive for Chinese banks. Chinese banking stocks will perform well in 2011, as China begins its tightening cycle. Net interest margin expansion and Rmb appreciation will be key re-rating themes. Capital raising activity is also largely completed. However, sentiment may be shaky in early 2011 due to fears of overtightening and profit taking after rights issues in Dec 2010. Confidence should strengthen once policy makers lay out a concrete policy road map. Moderate EPS growth even with dilution. We expect Chinese banks to achieve average EPS growth of 12% in 2011, even with IPO and rights dilution effects. Key drivers will include NIM expansion, moderate asset growth, and robust fees. These positives can eclipse higher credit cost due to prudent regulatory changes. Prefer large cap Chinese banks. Although smaller Chinese banks stand to benefit more from expected interest rate hikes, they are weighed by higher regulatory risks. Mid-cap banks face higher credit cost risk due to likely adoption of a new 2.5% provision to loans requirement. In addition, mid-cap banks also face greater capital pressure compared to large-cap banks. More selective on HK banks. Hong Kong banks have potential to re-rate further on improving sector’s ROE. However, this may be challenging, as margins will remain low in 2011 with quantitative easing flooding the banking system with liquidity. Meanwhile, credit and operating cost savings are difficult to attain at current levels. Conviction plays are CCB and ICBC. The two largest banks in China have the most bounce in 2011. Both are well capitalized and have built up prudent provisions. We also like their attractive FY11 PE and P/BV levels of 9x and 1.8x respectively against projected ROE levels of 21+%.

11

Average sector PB (LHS) US$ / Rmb (RHS)

Source: Bloomberg, DBS Vickers

Page 79 “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” www.dbsvickers.com sa: JC

“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

China Shipyards

Orders keep flowing

HO Pei Hwa +65 6398 7968 [email protected]

• Offshore, containers and tankers’ order flows will gain momentum.

Janice CHUA +65 6398 7954 [email protected]

• Continued strong government support to stimulate shipbuilding industry.

Bbg Code Cosco Corp Yangzijiang JES

Rating

COS SP YZJ SP JES SP

TP ($)

Buy BUY BUY

2.76 2.60 0.50

Source: DBS Vickers

Robust order flow and healthy book-to-bill ratio Cos c o

Yangzijiang

J ES

Or de r book (US D bln) As of Nov 2010

US D 6.1 bn

US D 5.3 bn

US D 0.8 bn

Deliv ery s chedule

2010 - 2013

2010 - 2013

2010 - 2012

Book-to-bill ratio

2.3x

2.4x

1.8x

Ne w or de r s YT D

US D 1.9bn

US D 1.0bn

US D0.9bn

Source: DBS Vickers

Price Relative Performance 210

170

130

90

50 Dec-09

Feb-10

Apr-10 Cosco Corp

Jun-10 Yangzijang

Aug-10

Oct-10

JES Int'l

• BUY into leading Chinese yards: Cosco and Yangzijiang Revival in orders for containers and tankers will offset the slowdown in bulk carrier orders. The order flow for Chinese shipbuilders is expected to remain strong in 2011. A likely slowdown in bulk carriers order after a robust 2010 could be mitigated by the revived interest for containers and tankers. In addition, offshore contract flow is gaining momentum as well, in particular, FPSO, jack up rigs and wind turbine vessels. We estimate global ship orders to grow 15% yoy in 2011, of which, containers and tankers are expected to grow 125% and 45% respectively on the back of declining orderbook-to-fleet ratio, attractive newbuild prices and profitable charter rates. Government support a key advantage. Government’s support will continue to be a trump card for Chinese shipbuilders especially the SOE and larger private yards, sharpening their competitive advantage over Korean and Japanese yards. In particular, the financing enabled the established shipyards and shipowners to take on new orders and pull in a significant number of owners who would have otherwise headed to South Korea. For instance, Chinese government’s recent US$5bn fund to Greek shipowners could create orders for up to 140 Panamax-equivalent vessels or 11m dwt (2% of current fleet) for Chinese shipyards. Leaders of the pack. We recommend investors to increase exposure to leading Chinese yards to tap into the robust order flow. Cosco is our top pick for its offshore positioning, being one of the few shipyards that has a track record in offshore projects and the first to secure full turnkey project. Yangzijiang is a prime beneficiary of revived containership orders being the largest privately owned containership builder in China. Revenue visibility is high as book-to-bill ratio are >2x for both yards.

Source: DBS Vickers

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“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

China / Hong Kong Banks

Prefer large caps

Alexander LEE, CFA +852 2971 1930 [email protected]

China CCB ICBC ABC CMB BoCom CNCB CMBC BOC Hong Kong Hang Seng BEA BOCHK

• NIM expansion and Rmb appreciation are key re-rating themes for Chinese banks in 2011

Bbg Code

Rec

Tp (LCY)

939 HK 1398 HK 1288 HK 3968 HK 3328 HK 998 HK 1988 HK 3988 HK

Buy Buy Buy Buy Buy Buy Buy Buy

8.81 7.17 4.93 24.50 10.70 6.04 8.09 4.76

11 HK 23 HK 2388 HK

Buy Hold Hold

123.60 34.00 24.60

*shown in order of preference Source: DBS Vickers

Chinese banks’ PB vs. 1-yr lending rate x

% 8.0

6.0

7.5

5.0

7.0 4.0

6.5 6.0

3.0

5.5

2.0

5.0 1.0

4.5

0.0

4.0 06

07

08

09

10

11

Average sector PB (LHS) 1-yr lending rate (RHS)

Chinese banks’ PB vs. Rmb x

US$/Rmb

6.0

0.160

5.0

0.150

4.0

0.140

3.0

0.130

2.0

0.120

1.0

0.110

0.0

0.100 06

07

08

09

10

• Prefer larger Chinese banks as they face less regulatory uncertainties • 2011 will be a year of low margins but high asset growth for HK banks Early tightening cycle is positive for Chinese banks. Chinese banking stocks will perform well in 2011, as China begins its tightening cycle. Net interest margin expansion and Rmb appreciation will be key re-rating themes. Capital raising activity is also largely completed. However, sentiment may be shaky in early 2011 due to fears of overtightening and profit taking after rights issues in Dec 2010. Confidence should strengthen once policy makers lay out a concrete policy road map. Moderate EPS growth even with dilution. We expect Chinese banks to achieve average EPS growth of 12% in 2011, even with IPO and rights dilution effects. Key drivers will include NIM expansion, moderate asset growth, and robust fees. These positives can eclipse higher credit cost due to prudent regulatory changes. Prefer large cap Chinese banks. Although smaller Chinese banks stand to benefit more from expected interest rate hikes, they are weighed by higher regulatory risks. Mid-cap banks face higher credit cost risk due to likely adoption of a new 2.5% provision to loans requirement. In addition, mid-cap banks also face greater capital pressure compared to large-cap banks. More selective on HK banks. Hong Kong banks have potential to re-rate further on improving sector’s ROE. However, this may be challenging, as margins will remain low in 2011 with quantitative easing flooding the banking system with liquidity. Meanwhile, credit and operating cost savings are difficult to attain at current levels. Conviction plays are CCB and ICBC. The two largest banks in China have the most bounce in 2011. Both are well capitalized and have built up prudent provisions. We also like their attractive FY11 PE and P/BV levels of 9x and 1.8x respectively against projected ROE levels of 21+%.

11

Average sector PB (LHS) US$ / Rmb (RHS)

Source: Bloomberg, DBS Vickers

Page 79 “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” www.dbsvickers.com sa: DC

“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

China / Hong Kong Retail

Still in the spotlight

Mavis HUI +852 2863 8879 [email protected]

• Multiple growth drivers from macro and micro fronts continue to fuel fundamental performance of sector

Bbg Code

Rec

TP (LCY)

Food retailers Beijing Jingkelong Lianhua Supermarket Wumart

814 HK 980 HK 8277 HK

Buy Buy Hold

10.84 40.74 19.21

Department stores Golden Eagle Lifestyle New World Dept Store Parkson

3308 HK 1212 HK 825 HK 3368 HK

Hold Hold Buy Buy

24.09 19.83 9.52 15.19

Discretionary retailers Giordano Gome Oriental Watch Sa Sa

709 HK 493 HK 398 HK 178 HK

Buy Buy Buy Hold

5.50 3.69 6.13 5.57

Target prices based on projected RMB:HKD forex rate of 1.21:1 by end-2011 Source: DBS Vickers

Average wage in China escalated

• Decent valuation to sustain over the medium-term, while global economic concerns could trigger brief corrections • Maintain positive view and opt for valuation laggards and yield. Macro outlook stays positive. Chinese retailers remain wellpoised to benefit from the government’s rebalance of growth towards consumption. Accelerated expansion in household income along with better purchasing power as Renminbi continues to appreciate should support decent performance across the sector. Retailers’ cost-plus strategies should also help to hedge against an inflationary environment. Over the mediumterm, operators that capture discretionary spending, including retailers of cosmetics, clothing & luxury merchandises should show even better growth prospects as living standard boom in China. Micro drivers lift growth further. In view of ample room for expansion, most Chinese retailers have expedited organic growth plans to more swiftly capture better economies of scale and operating efficiency. This is especially found in 2nd and 3rd-tier cities of China that still offer lower average start-up costs. Coupled with their abundant cash on hand and an open mind on acquisitions to boost growth, the sector should comfortably sustain double-digit revenue growth for 2011.

RMB 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1959

1969

1979

1989

1999

2009

Note: Latest 10-year CAGR for 2000-09 reached 15% Source: CEIC, DBS Vickers

A strong sector while valuation matters. Riding on positive industry outlook and better purchasing power of the Mainlanders, Chinese retailers as well as tourist retail plays in Hong Kong should continue to stand out as defensive choices in fundamental terms. While sector valuation will sustain at a good level over the medium-run, we could not rule out possible brief corrections that could set off by lingering global uncertainties. Together with share prices of growth stocks running ahead of peers and become less attractive for now, we prefer valuation laggards including Parkson, New World Dept Store, Beijing Jingkelong and Oriental Watch. Counters offering a better yield across the sector, such as Giordano (c.5%) could also serve as good picks under the current environment.

Page 82 “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” www.dbsvickers.com sa: DC

“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

China Insurance

Riding up the rate cycle

Dennis LAM +852 2971 1922 [email protected]

• Chinese insurance sector offers secular growth opportunities that are less impacted by China’s tightening environment.

China China Life Ping An Insurance China Pacific Insurance PICC

Bbg Code

Rec

TP (LCY)

2628 HK 2318 HK 2601 HK 2328 HK

Hold Buy Buy Buy

38.00 99.00 43.00 14.64

• Investment returns to improve in an interest rate upcycle. • Premium growths for both life and non life businesses remain strong • Attractive valuation as the interest rate cycle moves out of its trough.

Annual Insurance Data

Beneficiary of the interest rate upcycle. After a challenging 2010 with low investment yields, 2011 looks set to be a better year as the interest rate upcycle resumes. We believe insurers’ performance will be more favourable in a rising interest rate environment where returns from deposits and fixed income instruments will be higher.

RMB m 1,200,000 1,000,000 800,000 600,000 400,000 200,000

P&C

2010E

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

0

Life and Health insurance

Source: CIRC

Premium growth remains strong. Premium remained very robust for the insurance industry in 2010 with c.30% yoy growth. We expect FY11 life premiums to continue to be driven by participating products whilst auto insurance will drive non-life premiums growth. The start of the rate upcycle may rekindle some interest in investment-linked products as well. Valuation still reasonable. Insurers typically perform well on the interest rate upcycle. We continue to think Chinese insurers are still trading at very reasonable valuations as we are just moving out of the cycle trough. We maintain our preference on Ping An for its more balanced premium growth and profitability profile on the life side. We also like PICC for the improving underwriting profitability of its nonlife business.

Page 83 “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” www.dbsvickers.com sa: DC

“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

This page has been left blank intentionally

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“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

REGIONAL EARNINGS GUIDE

Page 85 “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” www.dbsvickers.com

“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

SINGAPORE : EARNINGS GUIDE Company BASIC MATERIALS China XLX Midas Holdings Xinren Aluminum Straits Asia

FYE

Dec Dec Dec Dec

Sector CONSUMER GOODS China Fishery Group China Minzhong ConscienceFood Hldgs First Resources Indofood-Agri Kencana Agri Olam International Pacific Andes Petra Food Wilmar

Sep Jun Dec Dec Dec Dec Jun Sep Dec Dec

Sector CONSUMER SERVICES Asiatravel.com Banyan Tree ComfortDelgro Genting Singapore Raffles Education Singapore Airlines Singapore Press SMRT Tiger Airways

Sep Dec Dec Dec Jun Mar Aug Mar Mar

595 1,145 549 1,842

453 871 418 1,262

4,131

3,004

2,165 726 99 2,100 3,923 494 6,503 966 990 38,051

1,648 553 75 1,598 2,986 376 4,949 735 753 28,956

102 868 3,238 25,456 656 18,269 6,333 3,053 1,009

58,983

Dec Dec

Sector Non-Bank Financials ARA Asset Cityspring Infrastructure First Ship Lease Pacific Shipping Trust Rickmers Maritime Singapore Exchange

Mkt Cap (US$m)

56,018

Sector FINANCIALS Banking OCBC Bank UOB Bank

Mkt Cap (S$m)

32,408 27,864

60,272 Dec Mar Dec Dec Dec Jun

Sector

1,027 544 266 275 161 9,084

11,357

Price (S$) 16-Dec

Target Price (S$)

% Upside

Rcmd

Share Price Performance (%) 3M 6M 12M

0.60 0.94 0.50 2.45

0.66 1.20 0.70 2.30

10% 28% 40% -6%

Buy Buy Buy Hold

3 (8) 0 7

2.16 1.35 0.25 1.43 2.71 0.43 3.06 0.34 1.62 5.95

2.38 1.60 0.38 1.55 3.20 0.46 3.60 0.48 1.59 6.60

0.41 1.14 1.55 2.09 0.25 15.26 3.97 2.01 1.86

0.40 1.18 1.79 2.70 0.25 18.50 4.37 1.88 1.90

10% 19% 52% 8% 18% 7% 18% 41% -2% 11%

Hold Buy Buy Buy Buy Hold Buy Buy Hold Hold

13 (2) 11 31 20 6 1 6 27 (7)

8 0 0 20

13 19 0 30 24 41 18 13 35 2

(9) 6 0 5

67 0 0 53 26 51 15 21 51 (6)

Avg 6-mth Vol (m) 4.2 7.3 38.8 5.4

0.3 1.8 8.2 1.7 6.3 5.5 7.2 3.8 0.4 8.5

42,628 78 661 2,464 19,372 499 13,903 4,819 2,323 768

-2% 3% 15% 29% 0% 21% 10% -6% 2%

Hold Hold Buy Buy FV Buy Hold FV Hold

(13) 37 1 0 (12) (5) (5) (3) (11)

1 39 8 87 (17) 5 4 (8) 4

(37) 50 (3) 82 (37) 7 10 10 0

0.6 0.3 3.8 123.2 9.6 1.9 3.7 1.9 3.3

44,885

24,662 21,204

9.70 17.86

11.30 21.50

16% 20%

Buy Buy

10 (4)

14 (9)

12 (10)

4.8 2.9

45,866 781 1.47 414 0.56 203 0.45 209 US$ 0.36 123 0.38 6,912 8.48

1.70 0.58 0.45 US$0.39 0.36 11.40

15% 4% 1% 11% -6% 34%

Buy Hold Hold Buy Hold Buy

29 (9) 5 20 1 0

36 (6) 19 25 1 11

104 (3) (25) 37 10 5

0.9 0.9 0.6 0.2 0.4 4.0

8,642

HEALTHCARE Biosensors Int'l Mar China Animal Healthcare Dec Raffles Medical Dec

1,275 629 1,231

970 478 936

Sector

3,134

2,385

1.16 0.40 2.34

1.20 0.41 2.40

4% 4% 3%

Hold Buy Hold

21 27 4

50 36 26

50 80 60

11.4 11.0 0.4

Net Profit (Before EI) (S$m) 09 10F 11F

EPS (Scts) 10F

24 38 60 175

34 48 73 110

45 73 98 208

3.4 4.6 6.6 9.8

297

265

425

124 59 11 148 222 22 183 124 32 2,253

153 72 14 135 188 10 272 131 52 1,905

186 86 16 184 246 20 354 150 63 2,280

3,178

2,933

11F

CAGR 09-11 (%)

10F

11F

4.5 6.0 8.9 18.5

39 20 15 9

17.4x 20.5x 7.6x 25.1x

13.1x 15.7x 5.6x 13.3x

15.6x

9.7x

14.1x 10.0x 5.3x 15.5x 20.8x 47.4x 22.7x 7.4x 19.1x 20.0x

11.6x 8.5x 4.7x 11.4x 16.0x 25.0x 18.3x 6.4x 15.8x 16.7x

3,583

19.1x

15.6x

6 3 220 (39) 82 1,062 422 163 (51)

2 6 230 843 47 216 485 163 37

5 15 244 1,114 37 1,416 383 158 64

1,866

2,028

3,436

1,859 1,792

2,253 2,447

2,550 2,614

3,651

4,700

5,164

48 (50) 11 36 61 306

64 8 1 36 37 316

62 (22) (3) 38 42 434

411

462

550

14 31 38

41 38 44

58 55 54

83

124

167

15.3 13.5 4.7 9.2 13.0 0.9 13.5 4.6 8.5 29.8

18.5 15.9 5.4 12.5 17.0 1.7 16.8 5.3 10.3 35.7

13 20 20 12 5 (12) 26 9 30 1

PE (x)

EV/EBITDA (x) 10F 11F

Price/ BV (x) 10F

Price/ Sales (x) 10F

Div Yld (%) 10F 11F

Net Debt/ Equity 09(x)

ROA 09

ROE 09

Analyst

Disclosure Legend

9.7x 10.8x 6.2x 17.1x

7.5x 8.0x 4.9x 9.3x

1.9x 1.8x 2.2x 4.2x

1.0x 5.3x 0.5x 3.1x

1.1% 1.1% 0.0% 2.4%

1.5% 2.1% 0.0% 4.5%

0.56 cash 4.84 0.32

4% 11% 7% 14%

8% 14% 80% 31%

Ho Pei Hwa Paul Yong Paul Yong Suvro Sarkar

9.2x 4.7x 2.2x 8.8x 11.1x 17.9x 16.4x 6.7x 12.3x 15.5x

7.6x 4.1x 1.6x 7.0x 8.8x 13.2x 12.5x 5.7x 11.0x 12.1x

2.4x 1.6x 1.2x 2.3x 2.5x 2.0x 3.5x 0.8x 2.6x 2.4x

3.1x 2.6x 0.9x 5.6x 2.5x 2.1x 0.6x 0.8x 0.5x 0.8x

2.3% 0.0% 9.1% 1.5% 0.0% 0.0% 1.6% 4.0% 2.5% 1.0%

2.8% 0.0% 4.3% 2.6% 0.0% 0.0% 1.6% 4.7% 2.5% 1.2%

0.82 cash cash 0.18 0.40 0.50 2.49 0.71 2.02 0.36

12% 24% 30% 13% 7% 8% 4% 6% 3% 9%

26% 35% 54% 24% 18% 13% 30% 15% 13% 18%

Andy Sim Andy Sim Andy Sim Santoso Santoso Santoso Santoso Santoso Santoso Santoso

20.4x 58.2x 13.3x 22.8x 17.9x 12.8x 16.5x 19.2x 15.5x

19.1x 16.8x 5.8x 19.8x 9.0x 7.4x 10.2x 9.4x 25.6x

11.8x 14.1x 5.3x 13.7x 11.7x 4.1x 13.0x 9.5x 14.2x

3.2x 1.6x 1.8x 4.5x 1.2x 1.4x 2.8x 4.0x 6.6x

1.1x 2.7x 1.0x 8.1x 3.5x 1.4x 4.6x 3.4x 1.5x

1.5% 0.0% 3.5% 0.0% 0.0% 0.8% 6.8% 4.3% 0.0%

3.0% 0.0% 3.7% 0.0% 0.0% 2.6% 6.0% 4.3% 0.0%

cash 0.44 0.05 0.22 0.08 cash cash cash cash

16% 0% 6% (4%) 5% 4% 13% 11% (29%)

27% 1% 14% (8%) 11% 7% 20% 23% 69%

Suvro Sarkar Derek Tan Andy Sim Research Team Andy Sim Paul Yong Andy Sim Andy Sim Paul Yong

n.a. n.a.

n.a. n.a.

1.7x 1.5x

n.a. n.a.

3.4% 3.5%

3.8% 3.4%

cash cash

nm nm

12% 12%

Research Team Research Team

Note 1

Note 2

0.7 0.8 11.0 6.9 1.8 18.1 30.5 10.7 9.3

2.0 2.0 11.7 9.2 1.4 118.8 24.0 10.5 12.0

(17) 122 5 nm (37) 15 (5) (1) na

55.6x 146.5x 14.0x 30.1x 14.0x 84.3x 13.0x 18.7x 20.0x

29.1x

17.2x

69.8 161.8

79.0 172.9

16 21

13.9x 11.0x

12.3x 10.3x

12.8x

11.7x 16.2x nm nm 7.3x 3.8x 20.9x

13.0x 15.5x 6.9x 7.2x 6.5x 20.7x

12.8x 15.0x 7.2x 8.0x 6.0x 14.7x

6.4x 1.1x 0.6x 0.9x 0.4x 11.1x

9.6x 1.2x 2.0x 3.4x 0.8x 14.2x

3.3% 8.3% 12.9% 9.4% 8.0% 3.1%

3.3% 7.6% 11.5% 9.9% 8.3% 4.3%

cash 9.74 1.13 0.82 1.68 cash

35% (2%) 1% 6% 4% 18%

47% (20%) 2% 12% 11% 37%

Derek Tan Suvro Sarkar Suvro Sarkar Suvro Sarkar Suvro Sarkar Research Team

22.7x 8.7x 18.7x

14.6x 5.6x 15.6x

6.5x 3.2x 4.4x

8.1x 4.7x 4.8x

0.0% 0.6% 1.5%

0.0% 0.9% 1.7%

cash cash cash

(1%) 23% 12%

(1%) 27% 16%

Andy Sim Research Team Andy Sim

9.3 0.9 0.2 6.1 8.8 29.5

9.1 (2.3) (0.6) 6.4 10.0 40.5

14 (53) na 2 (16) 19

15.8x 60.5x 280.4x 7.6x 4.3x 28.8x

24.6x

20.6x

3.9 2.4 8.4

5.5 3.5 10.3

103 32 19

29.8x 16.2x 27.8x

21.1x 11.4x 22.7x

25.4x

18.8x

Note 3

Note 2 Note 2

Note 2, 4 Note 2

Note 2

Note 3

Note 2

SINGAPORE : EARNINGS GUIDE Company

FYE

INDUSTRIALS Asia Environment Dec ASL Marine Jun Boustead Singapore Mar Broadway Dec China Merchant HoldingsDec Cosco Corp Dec Ezion Holdings Dec Fraser and Neave Sep Hiap Seng Mar Hyflux Dec Jaya Holdings Jun Jes International Dec Keppel Corporation Dec Neptune Orient Lines Dec Noble Dec OKP Holdings Dec Pan-United Corporation Dec PEC Ltd Jun SembCorp Industries Dec SembCorp Marine Dec SIA Engineering Mar Mar SATS Ltd Singapore Post Mar Sound Global Dec ST Engineering Dec Swiber Dec Tat Hong Mar Tiong Seng Holdings Dec Yangzijiang Dec Yongnam Holdings Dec

Sector OIL & GAS CH Offshore Mermaid Maritime

Mkt Cap (US$m)

Price (S$) 16-Dec

Target Price (S$)

% Upside

Rcmd

Share Price Performance (%) 3M 6M 12M

103 292 574 220 428 4,658 493 8,566 196 1,259 562 391 17,136 5,580 12,476 147 283 286 8,856 10,284 4,721 3,098 2,239 1,077 9,869 508 467 195 7,252 361

79 223 437 168 326 3,544 375 6,518 149 958 428 297 13,040 4,246 9,494 112 216 217 6,739 7,826 3,592 2,358 1,704 820 7,510 387 355 149 5,519 275

0.20 0.97 1.11 1.06 0.74 2.08 0.69 6.10 0.65 2.20 0.73 0.34 10.68 2.16 2.07 0.56 0.51 1.14 4.95 4.95 4.33 2.80 1.16 0.84 3.25 1.00 0.94 0.26 1.89 0.29

0.15 0.96 1.00 1.34 1.08 2.46 1.00 6.90 0.82 3.20 1.15 0.50 12.50 2.50 2.60 0.70 0.62 1.58 5.70 6.08 5.10 3.13 1.17 0.94 3.85 1.28 1.08 0.36 2.60 0.47

-24% -1% -10% 27% 47% 18% 45% 13% 26% 45% 57% 50% 17% 16% 26% 26% 21% 39% 15% 23% 18% 12% 1% 13% 18% 28% 15% 40% 38% 62%

FV Hold Hold Hold Buy Buy Buy Hold Buy Hold Buy Buy Buy Buy Buy Buy Buy Buy Buy Buy Buy Buy Hold Hold Buy Buy Hold Buy Buy Buy

8 3 19 (12) 3 21 3 (1) (2) 7 7 52 17 7 16 19 2 10 12 24 (2) 1 (4) 9 (2) (5) (6) (4) 7 9

102,578 Jun Sep

Sector PROPERTY Allgreen Properties Dec Bukit Sembawang Mar Capitaland Dec CapitaMalls Asia Dec City Development Dec Global Logistics Mar Guocoland Jun Ho Bee Dec Keppel Land Dec SC Global Dec Singapore Land Dec United Industrial Corpora Dec UOL Group Dec Wheelock Properties Dec Wing Tai Hings Jun Yanlord Dec Ying Li International Dec

Sector

Mkt Cap (S$m)

(31) 8 51 86 21 94 (12) 47 1 2 46 116 33 41 5 16 (3) 68 38 34 36 10 18 20 2 3 (10) 0 64 14

0.6 0.2 0.5 1.2 0.1 16.3 6.3 2.6 0.9 1.0 3.9 13.8 4.7 13.0 26.5 0.7 0.3 3.0 2.5 5.1 0.5 2.2 3.8 8.0 2.4 4.5 0.4 0.9 15.3 6.4

78,060

338 334

258 254

672

511

1,877 1,135 15,601 7,185 11,985 9,554 3,041 1,136 6,700 672 3,065 3,334 3,491 2,369 1,334 3,207 822

1,428 864 11,872 5,468 9,120 7,271 2,314 864 5,099 511 2,332 2,537 2,657 1,803 1,015 2,441 625

76,507

33 15 37 (4) 18 39 4 23 2 0 11 97 25 6 11 19 9 49 22 26 10 6 6 (9) 4 (1) (1) 4 45 16

Avg 6-mth Vol (m)

58,220

0.48 0.43

0.60 0.49

24% 15%

Hold Hold

(9) (6)

(9) (23)

(27) (48)

0.8 2.7

Net Profit (Before EI) (S$m) 09 10F 11F 7 51 60 32 59 110 20 475 13 75 172 (21) 1,265 (974) 565 14 35 21 683 712 261 147 146 55 444 11 69 43 452 40

8 40 43 44 51 198 39 583 31 79 120 12 1,283 508 635 15 20 45 790 758 230 181 147 53 473 41 39 30 559 53

6 39 55 46 79 275 62 586 26 75 61 36 1,218 573 907 18 28 31 644 655 271 207 151 96 507 77 45 38 647 58

5,040

7,109

7,516

59 30

49 (28)

44 (4)

89 1.18 4.64 3.66 1.85 13.18 2.12 2.57 1.54 4.62 1.62 7.43 2.42 4.49 1.98 1.68 1.65 0.38

1.34 5.25 4.96 2.59 13.26 2.76 2.08 2.20 4.96 2.19 8.30 2.21 5.23 2.32 2.05 1.71 0.52

14% 13% 36% 40% 1% 30% -19% 43% 7% 35% 12% -9% 16% 17% 22% 4% 37%

Hold Hold Buy Buy FV Buy Hold Buy Buy Buy Buy Hold Buy Buy Hold Hold Buy

3 (1) (8) (14) 14 0 18 (3) 14 4 8 7 5 4 (2) (10) (8)

7 2 (2) (14) 25 0 25 2 22 2 13 14 19 7 4 (5) (11)

3 (7) (12) (30) 22 0 24 (3) 40 (2) 15 18 17 (2) (6) (26) (41)

2.3 0.0 16.1 4.7 1.5 41.9 0.2 1.1 3.5 0.3 0.1 0.1 0.8 0.6 1.4 5.6 4.6

169 13 872 388 594

21

EPS (Scts) 10F

11F

CAGR 09-11 (%)

2.0 13.2 8.4 21.5 5.9 8.8 5.5 41.8 10.4 14.8 15.5 1.0 80.5 19.7 10.7 5.6 3.6 18.0 44.3 36.6 21.3 16.6 7.7 3.6 15.7 8.1 6.8 3.9 14.6 4.3

1.5 12.9 10.7 22.4 9.2 12.3 8.3 42.1 8.4 14.1 7.9 3.1 76.4 22.2 15.2 6.8 5.1 12.4 36.1 31.6 25.1 18.9 7.9 6.5 16.8 15.1 7.9 5.0 16.9 4.7

(2) (13) (4) 21 na na 74 11 41 0 (40) nm (2) nm 2 8 (10) 21 (3) (4) 2 18 2 23 7 159 (24) (6) 17 20

7.0 (3.1)

6.2 (0.5)

(14) #NUM!

40

61 424 281 57 343 516 294 158 134 205 (10)

209 13 704 350 634 290 98 226 342 111 169 229 381 184 155 332 (11)

296 97 917 233 834 309 128 232 467 152 179 217 417 308 147 353 60

4,499

4,415

5,344

13.1 6.0 16.6 9.0 69.8 6.4 11.0 30.6 23.9 28.1 41.0 16.6 47.8 15.4 19.5 17.1 (0.6)

18.6 45.1 21.6 6.0 91.7 6.9 14.4 31.5 32.6 38.5 43.3 15.7 52.3 25.7 18.5 18.2 3.1

32 94 (0) (23) 18 nm 45 (26) 16 63 (28) (35) 19 40 5 29 nm

PE (x) 10F

11F

10.2x 7.3x 13.3x 4.9x 12.4x 23.5x 12.6x 14.6x 6.2x 14.9x 4.7x 33.4x 13.3x 11.0x 19.4x 10.0x 14.0x 6.3x 11.2x 13.5x 20.3x 16.9x 15.1x 23.4x 20.7x 12.3x 13.9x 6.5x 13.0x 6.7x

13.1x 7.5x 10.4x 4.7x 8.0x 16.9x 8.3x 14.5x 7.6x 15.6x 9.3x 11.0x 14.0x 9.7x 13.6x 8.2x 10.0x 9.2x 13.7x 15.6x 17.2x 14.8x 14.7x 12.9x 19.3x 6.6x 11.9x 5.1x 11.2x 6.2x

14.4x

13.6x

6.9x nm

7.7x nm

31.7x

16.9x

9.0x 77.2x 22.1x 20.6x 18.9x 32.9x 23.3x 5.0x 19.3x 5.8x 18.1x 14.5x 9.4x 12.9x 8.6x 9.7x nm

6.3x 10.3x 17.0x 30.9x 14.4x 30.9x 17.9x 4.9x 14.2x 4.2x 17.1x 15.4x 8.6x 7.7x 9.1x 9.1x 12.2x

17.3x

14.3x

EV/EBITDA (x) 10F 11F

Price/ BV (x) 10F

Price/ Sales (x) 10F

Div Yld (%) 10F 11F

Net Debt/ Equity 09(x)

ROA 09

ROE 09

Analyst

8.1x 4.9x 6.2x 3.1x 14.9x 9.6x 11.4x 9.8x 4.5x 12.6x 4.4x 19.6x 8.8x 6.2x 14.2x 3.2x 6.2x 2.1x 5.7x 8.5x 15.3x 9.0x 11.3x 11.1x 12.0x 11.2x 6.6x 3.4x 9.4x 5.6x

9.4x 4.1x 4.4x 2.7x 6.8x 7.0x 7.2x 10.3x 4.5x 12.2x 7.2x 4.7x 9.3x 6.1x 10.3x 2.3x 4.9x 2.4x 6.4x 9.9x 12.5x 8.2x 10.8x 5.3x 11.3x 8.1x 6.4x 1.9x 7.9x 5.4x

0.5x 0.9x 2.7x 0.9x 0.8x 3.8x 2.1x 1.4x 2.5x 2.8x 1.2x 1.2x 2.5x 1.3x 2.5x 2.2x 1.0x 1.6x 2.3x 4.3x 3.7x 2.1x 8.0x 2.4x 5.8x 1.2x 1.1x 1.1x 4.0x 1.5x

0.8x 0.6x 1.3x 0.4x 7.6x 1.3x 3.6x 1.5x 0.8x 2.3x 1.6x 1.0x 1.8x 0.5x 0.2x 1.1x 0.7x 0.6x 1.0x 2.2x 4.6x 2.0x 4.7x 3.7x 1.7x 0.9x 1.1x 0.6x 3.1x 1.0x

0.0% 2.3% 5.0% 4.2% 5.9% 2.3% 0.7% 2.8% 6.2% 2.3% 0.0% 0.3% 4.3% 1.8% 1.3% 5.4% 5.9% 3.1% 3.3% 4.0% 4.2% 4.6% 5.6% 0.9% 4.3% 0.0% 2.7% 0.0% 2.3% 2.2%

0.0% 2.2% 4.1% 4.2% 6.6% 3.0% 0.6% 3.1% 7.0% 2.3% 0.0% 1.4% 3.6% 2.1% 1.8% 5.4% 5.9% 2.2% 2.9% 3.2% 4.6% 5.0% 5.8% 1.6% 4.7% 0.0% 2.5% 0.0% 2.7% 2.4%

0.70 0.33 cash 0.25 cash cash 0.65 0.51 cash 0.59 0.72 cash cash 0.21 0.86 cash 0.04 cash cash cash cash cash 0.65 cash cash 0.84 0.37 cash cash 0.76

2% 11% 14% 8% 5% 2% 6% 3% 12% 8% 0% (3%) 10% (14%) 6% 14% 7% 10% 8% 15% 18% 8% 20% 12% 7% 4% 8% 12% 12% 9%

4% 27% 33% 17% 5% 10% 11% 6% 26% 23% 0% (6%) 31% (28%) 23% 29% 13% 21% 23% 44% 22% 11% 65% 20% 28% 14% 18% 54% 43% 24%

Tan Ai Teng Jeremy Thia Tan Ai Teng Tan Ai Teng Paul Yong Janice Chua Jeremy Thia Andy Sim Ho Pei Hwa Tan Ai Teng Jeremy Thia Ho Pei Hwa Janice Chua Suvro Sarkar Santoso Santoso Ho Pei Hwa Jeremy Thia Tan Ai Teng Janice Chua Janice Chua Andy Sim Sachin Mittal Tan Ai Teng Janice Chua Janice Chua Ho Pei Hwa Derek Tan Ho Pei Hwa Santoso

5.8x 24.2x

4.9x 8.1x

1.2x 0.7x

4.1x 2.5x

2.9% 0.0%

3.2% 0.0%

cash 0.07

31% 5%

34% 7%

Jeremy Thia Jeremy Thia

8.8x 85.4x 15.8x 18.2x 14.0x 32.0x 28.3x 6.7x 16.3x 9.2x 14.7x 14.0x 9.0x 8.6x 7.5x 5.6x nm

6.6x 10.5x 12.8x 27.9x 11.8x 25.5x 23.0x 6.6x 11.4x 5.0x 13.9x 14.8x 9.0x 4.5x 8.8x 7.4x 10.8x

0.7x 1.3x 1.1x 1.2x 1.8x 3.7x 1.1x 0.8x 1.6x 1.1x 0.8x 1.0x 0.8x 0.9x 0.8x 1.2x 1.7x

2.6x 15.2x 4.3x 28.7x 3.6x 17.6x 3.7x 2.4x 7.1x 0.7x 5.8x 3.9x 2.9x 4.6x 1.6x 1.9x 86.8x

2.8% 1.0% 1.5% 0.5% 0.7% 0.0% 1.3% 1.3% 1.7% 1.9% 2.7% 1.2% 2.2% 3.0% 2.9% 1.0% 0.0%

2.8% 1.9% 1.5% 0.5% 0.8% 0.0% 1.7% 1.3% 1.7% 1.4% 2.7% 1.2% 2.2% 3.0% 3.3% 1.1% 0.0%

0.34 2.19 0.08 cash 0.50 cash 1.12 0.19 0.22 2.18 0.11 0.20 0.30 cash 0.47 0.02 0.13

4% (4%) 4% 7% 4% nm (1%) 17% 4% 2% (5%) (2%) 6% 9% 1% 6% 2%

7% (11%) 9% 11% 10% nm (4%) 32% 10% 14% (7%) (5%) 11% 12% 1% 15% 4%

Lock Mun Yee Derek Tan Lock Mun Yee Lock Mun Yee Lock Mun Yee Lock Mun Yee Lock Mun Yee Lock Mun Yee Lock Mun Yee Derek Tan Lock Mun Yee Lock Mun Yee Lock Mun Yee Derek Tan Lock Mun Yee Derek Tan Paul Yong

Disclosure Legend

Note 2

Note 2

Note 2 Note 2

Note 2

Note 2

Note 2, 3 Note 2, 4 Note 2

Note 2

Note 2

SINGAPORE : EARNINGS GUIDE Company

FYE

REITS Ascendas India Trust Mar Ascendas REITS Mar Ascott Residence Dec CDL Hospitality Dec Cache Logistics Trust Dec Cambridge Industrial TrusDec Capitacommercial Trust Dec Capitamall Trust Dec CapitaRetail China Trust Dec Frasers Centrepoint Trust Sep Frasers Commercial Trust Sep K-Reit Dec Mapletree Industrial TrustMar Mapletree Logistics Trust Dec Parkway Life REIT Dec Starhill Global Reits Dec

Sector TECHNOLOGY Creative Technology CSE Global Hi-P International Longcheer Meiban Group Venture Corporation

Mkt Cap (S$m)

Mkt Cap (US$m)

704 3,802 1,352 1,982 596 539 4,122 6,114 763 1,113 512 1,895 1,550 2,256 986 1,185

536 2,894 1,029 1,509 453 410 3,137 4,652 581 847 390 1,442 1,180 1,717 750 902

29,472 Jun Dec Dec Jun Dec Dec

229 486 675 213 78 1,910

Sector

4,719

3,591

TELECOMMUNICATION MobileOne Dec Singapore Telecom Mar Starhub Dec

2,087 49,239 4,494

1,588 37,470 3,420

SGD/USD Exch rate:

55,821 1.314

Target Price (S$)

% Upside

Rcmd

Share Price Performance (%) 3M 6M 12M

0.92 2.03 1.22 2.07 0.94 0.51 1.46 1.92 1.22 1.45 0.17 1.41 1.06 0.93 1.63 0.61

1.08 2.19 1.38 2.28 1.11 0.58 1.47 2.09 1.30 1.74 0.19 1.20 1.16 1.01 1.84 0.76

18% 8% 13% 10% 18% 14% 1% 9% 7% 20% 13% -15% 9% 9% 13% 25%

Hold Hold Buy Buy Buy Buy Hold Buy Hold Buy Hold Hold Buy Buy Buy Buy

(8) (7) 6 (8) (6) (7) 6 (2) (2) (5) 10 12 0 9 (1) 4

(7) 8 7 14 (2) 2 25 1 2 10 18 29 0 10 n.a n.a

5 7 4 25 0 25 26 7 (6) 12 22 36 0 30 n.a n.a

Avg 6-mth Vol (m) 1.0 6.6 1.9 2.0 1.6 1.8 7.9 5.2 1.1 0.9 6.6 0.8 22.5 3.1 1.3 1.5

22,427

301 639 887 280 103 2,509

Sector

Price (S$) 16-Dec

4.01 1.25 1.00 0.71 0.32 9.15

2.32 3.09 2.62

3.51 1.45 1.30 1.11 0.30 11.80

2.50 3.55 2.20

-13% 16% 30% 57% -5%

29% 8% 15% -16%

FV Buy Buy Buy Hold Buy

Buy Buy Sell

(1) 20 12 (11) (6) 3

5 (1) 5

(7) 37 96 0 11 7

9 1 16

(33) 53 49 33 11 6

26 1 28

42,478

0.0 1.3 1.7 1.6 1.1 0.4

0.9 18.8 1.9

Net Profit (Before EI) (S$m) 09 10F 11F 57 211 45 76

118 47 75

58 235 55 102 35 44 222 305 52 59 34 93 91 130 52 76

53 253 91 121 53 53 192 314 53 60 38 108 99 167 64 84

1,337

1,642

1,806

(114) 43 54 29 15 142

(55) 54 62 31 12 196

(45) 62 99 38 15 215

44 199 282 49 47 17 71

169

300

383

145 3,454 320

160 3,907 249

168 3,862 280

3,918

4,317

4,309

EPS (Scts) 10F

11F

CAGR 09-11 (%)

5.6 14.0 4.7 10.0 4.5 4.2 6.7 8.8 7.3 6.8 0.2 5.1 5.9 6.1 8.1 3.9

6.4 12.8 6.8 11.4 7.5 4.4 6.3 9.3 7.5 7.2 0.8 4.0 6.7 6.6 9.5 4.9

(7) (6) 15 21 na 0 (3) 12 7 1 182 8 na 10 15 1

(73.9) 10.5 7.4 8.9 3.8 71.4

18.0 24.6 14.5

(60.2) 12.1 11.9 10.7 4.5 78.4

18.8 24.3 16.3

(37) 16 38 14 (1) 23

8 6 (6)

PE (x) 10F

11F

16.4x 14.5x 26.1x 20.8x 20.9x 12.3x 21.7x 21.8x 16.8x 21.2x 72.7x 27.4x 17.9x 15.4x 20.2x 15.5x

14.3x 15.9x 17.9x 18.1x 12.6x 11.7x 23.0x 20.7x 16.2x 20.1x 21.5x 35.5x 15.9x 14.1x 17.2x 12.6x

17.9x

16.3x

nm 11.9x 13.5x 7.9x 8.4x 12.8x

nm 10.3x 8.4x 6.6x 7.0x 11.7x

15.7x

12.3x

12.9x 12.6x 18.0x

12.3x 12.7x 16.1x

12.9x

13.0x

EV/EBITDA (x) 10F 11F

Price/ BV (x) 10F

Price/ Sales (x) 10F

Div Yld (%) 10F 11F

Net Debt/ Equity 09(x)

ROA 09

ROE 09

Analyst

12.7x 16.0x 24.9x 20.7x 22.4x 13.0x 18.8x 22.2x 16.0x 22.0x 20.7x 31.1x 21.0x 18.8x 22.2x 17.6x

12.0x 18.1x 16.9x 19.4x 14.8x 13.4x 20.2x 21.0x 15.1x 21.1x 18.5x 51.2x 19.4x 16.8x 20.2x 14.9x

1.0x 1.2x 0.9x 1.4x 1.1x 0.8x 1.0x 1.2x 1.1x 1.1x 0.6x 1.0x 1.3x 1.1x 1.2x 0.7x

5.8x 7.9x 4.6x 14.2x 15.1x 6.2x 10.5x 10.4x 6.3x 9.7x 4.3x 18.3x 8.7x 8.8x 12.5x 7.1x

8.2% 6.5% 6.1% 5.2% 5.9% 9.6% 5.4% 4.8% 6.8% 5.7% 6.7% 4.9% 5.9% 6.5% 5.3% 6.4%

7.6% 6.7% 6.7% 5.8% 8.9% 9.8% 4.6% 5.3% 6.9% 5.6% 7.1% 5.5% 6.4% 7.1% 6.0% 7.1%

9.2% 35.7% 41.7% 19.0% cash 42.9% 32.9% 31.3% 35.0% 30.2% 38.9% 28.3% cash 36.4% 28.3% 16.0%

0% 5% 2% 4% nm 3% 3% 3% 3% 3% 0% 1% nm 4% 4% 3%

0% 8% 3% 6% nm 5% 5% 5% 6% 5% 0% 1% nm 6% 5% 4%

Derek Tan Derek Tan Derek Tan Derek Tan Derek Tan Derek Tan Lock Mun Yee Lock Mun Yee Derek Tan Derek Tan Derek Tan Lock Mun Yee Derek Tan Derek Tan Andy Sim Derek Tan

nm 7.5x 3.9x 4.1x 1.8x 7.1x

nm 6.5x 2.2x 3.2x 1.2x 6.1x

0.8x 3.1x 1.4x 1.7x 0.7x 1.3x

0.8x 1.2x 0.9x 0.3x 0.3x 0.9x

2.2% 3.4% 1.5% 5.4% 6.3% 5.5%

2.2% 3.9% 2.4% 5.4% 6.3% 5.5%

cash 0.36 cash cash cash cash

(22%) 13% 7% 13% 6% 5%

(34%) 36% 9% 24% 11% 8%

Tan Ai Teng Sachin Mittal Tan Ai Teng Tan Ai Teng Tan Ai Teng Tan Ai Teng

7.3x 7.5x 8.8x

7.0x 7.6x 8.2x

7.3x 2.2x 84.9x

2.2x 2.9x 2.0x

6.2% 4.6% 7.6%

6.5% 5.5% 7.6%

0.91 0.29 5.66

18% 10% 19%

66% 17% 278%

Sachin Mittal Sachin Mittal Sachin Mittal

Legend

Note 1 As at 24 Dec 2010, DBSVS and its affiliates has a proprietary position in these companies. Note 2 DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA, within the past 12 months, have received compensation and/or within the next 3 months seek to obtain compensation for investment banking services Note 3 DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA beneficially own a total of 1% or more of any class of common equity securities of these companies. Note 4 DBSVS has been appointed as the designated market maker of structured warrant(s) for these companies issued by DBS Bank Ltd.

Disclosure Legend

Note 2 Note 2, 3 Note 1, 2 Note 3 Note 2 Note 2, 3 Note 2 Note 2 Note 2 Note 2

Note 2

MALAYSIA : EARNINGS GUIDE FYE Company Banks Alliance Financial Group AMMB Hldgs CIMB Group Hldgs EON Capital Hong Leong Bank Maybank Public Bank-Foreign RHB Capital

Mar Mar Dec Dec Jun Jun Dec Dec

Sector Non-Bank Financials Bursa Malaysia TA Enterprise

Dec Jan

Feb Dec Dec Jun Dec Nov

Sector Healthcare Faber Group

Mkt Cap (US$m)

Price (RM) 16-Dec

Target Price (RM)

% Upside

Rcmd

Share Price Avg Performance (%) 6-mth 3M 6M 12M Vol (m)

4,582 20,014 63,327 4,811 14,853 60,234 45,209 18,412

1,464 6,393 20,227 1,537 4,744 19,239 14,440 5,881

2.96 6.64 8.52 6.94 9.40 8.51 12.80 8.55

3.85 6.50 10.10 7.30 10.50 10.80 13.10 10.00

30% -2% 19% 5% 12% 27% 2% 17%

Buy Hold Buy Hold Buy Buy Hold Buy

(6) 14 3 (1) 4 (3) 0 21

231,442

Sector Consumer AEON Credit Service (M) British American Tobacco JobStreet Corp Parkson Hldgs Bhd Pelikan International Zhulian Corporation

Mkt Cap (RMm)

Dec

4,097 1,301

1,309 416

5,398

1,724

449 12,849 914 6,212 615 810

143 4,104 292 1,984 197 259

21,848

6,979

958

306

306

Manufacturing/ Industrial Boustead Holdings Dec Engtex Group Dec Evergreen Fibreboard Dec Hiap Teck Jul Kossan Rubber Dec Kinsteel Bhd Dec Masterskill Education Dec Notion Vtec Sep Petronas Dagangan Mar Southern Steel Dec Top Glove Aug

5,209 183 739 383 1,033 798 857 250 11,723 931 3,166

1,664 58 236 122 330 255 274 80 3,744 297 1,011

Sector

25,272

8,072

Media Astro

Jan

Sector Motor APM Automotive MBM Resources Proton UMW Hldgs

Dec Dec Mar Dec

Sector Oil & Gas Alam Maritim Dayang Enterprise Holding KNM Group Perisai Petroleum Petra Perdana Tanjung Offshore Wah Seong

Dec Dec Dec Dec Dec Dec Dec

Sector Conglomerates DRB-Hicom PPB Group Sime Darby

Sector

Mar Dec Jun

13 34 30 8 14 26 18 61

2.2 4.3 9.1 0.1 0.3 8.5 1.2 1.7

73,924

958

Sector

6 34 23 (1) 11 14 10 47

8,396

2,682

8,396

2,682

1,109 811 2,598 7,916

354 259 830 2,528

12,433

3,971

812 961 2,643 354 410 429 1,549

259 307 844 113 131 137 495

7,158

2,286

3,402 20,130 52,583

1,087 6,430 16,795

72,713

23,225

Net Profit (Before EI) 09 10F 229 861 2,807 341 905 2,311 2,517 1,201

11,173 7.71 0.76

3.74 45.00 2.87 5.68 1.20 1.76

2.64

5.54 0.93 1.44 1.17 3.23 0.84 2.09 1.62 11.80 2.22 5.12

4.29

5.50 3.34 4.73 6.87

1.04 2.73 2.64 0.54 0.91 1.47 2.14

1.76 16.98 8.75

9.60 1.25

4.60 40.00 3.30 6.60 1.40 2.85

2.90

7.60 1.05 2.10 1.35 2.80 1.25 4.90 2.30 10.15 2.50 4.60

4.30

4.80 4.80 6.60 7.40

1.00 3.40 3.50 0.70 0.90 1.35 1.90

3.55 15.75 10.20

25% 64%

23% -11% 15% 16% 17% 62%

10%

37% 14% 46% 15% -13% 50% 134% 42% -14% 13% -10%

0%

-13% 44% 40% 8%

-4% 25% 33% 31% -1% -8% -11%

102% -7% 17%

Buy Buy

Buy FV Buy Buy Buy Buy

Hold

Buy Hold Buy Hold FV Buy Buy Buy Hold Hold FV

Hold

FV Buy Buy Buy

FV Buy Buy Buy Buy Hold Hold

Buy FV Buy

(1) 15

(4) (5) 33 (2) 6 (8)

(17)

18 (4) (6) (6) 1 (2) (42) (7) 6 10 (13)

0

16 5 (5) 6

(2) 35 50 7 (12) (22) 3

48 (5) 7

10 13

(6) 3 38 6 6 (11)

(10)

45 (10) (7) (3) (13) 1 (44) (47) 30 16 (20)

0

43 15 4 11

(11) 32 32 1 (25) 23 (4)

71 4 11

(4) 11

(5) 6 95 9 (14) 52

73

61 (11) 12 (19) 29 (5) 0 (37) 35 19 8

0

129 37 24 8

(18) 90 (12) 3 (25) 47 (10)

76 6 (3)

0.8 3.5

0.1 0.1 0.1 0.8 0.4 0.3

0.7

1.0 0.3 0.7 0.5 0.6 2.1 1.1 0.6 0.2 0.2 1.7

NA

0.2 0.2 0.4 1.6

0.8 0.6 15.5 1.9 2.5 0.9 0.7

7.2 0.7 5.5

301 1,009 3,553 438 988 3,818 2,959 1,376

14,443

11F 401 1,308 4,277 486 1,086 4,346 3,349 1,581

EPS (Sen) 10F 11F 19.5 33.5 50.3 63.2 62.5 53.9 88.2 63.9

25.9 43.4 60.5 70.1 68.7 61.4 99.8 73.4

CAGR 09-11 (%) 32 17 24 19 10 37 15 15

16,833

102 92

128 95

150 75

24.5 5.6

194

223

226

49 747 27 263 36 82

55 724 36 284 60 94

65 45.9 719 253.5 43 11.4 346 27.4 78 11.7 109 20.5

1,204

1,254

28.7 4.4

54.0 251.9 13.7 31.9 15.2 23.7

22 (17)

15 (2) 27 12 20 15

1,361

75

94

98

75

94

98

342 23 71 43 67 19 97 36 579 17 169

379 33 119 51 109 29 99 35 753 111 245

595 35 134 60 111 93 115 46 795 119 201

1,462

1,962

2,303

25.8

40.3 16.8 23.1 15.5 34.0 3.1 24.1 22.9 75.8 27.0 39.7

158

282

256

158

282

256

14.6

74 66 (153) 469

113 146 219 683

119 184 320 756

456

1,161

1,378

91 45 261 38 17 3 121

59 67 170 25 (66) 11 50

73 7.6 96 19.2 227 17.0 26 3.7 33 (14.6) 31 4.0 81 6.6

576

317

566

661 1,616 2,280

472 1,031 727

539 1,235 3,242

3,896

1,758

4,478

57.3 59.5 39.9 61.0

24.4 87.0 12.1

27.0

63.2 17.7 26.2 18.3 34.7 9.8 28.2 28.3 80.0 29.0 32.5

13.2

60.2 74.8 58.2 67.6

9.4 27.2 22.6 4.0 6.4 11.1 10.7

27.9 104.2 54.0

14

30 24 37 18 29 121 9 5 17 163 9

27

26 66 nm 26

(12) 46 (7) (27) 6 198 (18)

(10) (13) 19

PE (x) 10F 11F 15.2x 19.8x 16.9x 11.0x 15.0x 15.8x 14.5x 13.4x

11.4x 15.3x 14.1x 9.9x 13.7x 13.9x 12.8x 11.6x

16.0x

13.7x

31.5x 13.7x

26.9x 17.3x

31.5x

26.9x

8.1x 17.7x 25.2x 20.7x 10.2x 8.6x

6.9x 17.9x 20.9x 17.8x 7.9x 7.4x

17.4x

16.1x

10.2x

9.8x

10.2x

9.8x

13.7x 5.5x 6.2x 7.6x 9.5x 27.3x 8.7x 7.1x 15.6x 8.2x 12.9x

8.8x 5.2x 5.5x 6.4x 9.3x 8.5x 7.4x 5.7x 14.8x 7.7x 15.8x

12.9x

11.0x

29.5x

32.5x

29.5x

32.9x

9.6x 5.6x 11.9x 11.3x

9.1x 4.5x 8.1x 10.2x

10.7x

9.0x

13.7x 14.2x 15.5x 14.3x nm 36.4x 32.6x

11.1x 10.0x 11.7x 13.4x 14.3x 13.2x 20.1x

22.6x

12.6x

7.2x 19.5x 72.3x

6.3x 16.3x 16.2x

41.4x

16.2x

EV/EBITDA Price/ (x) BV (x) 10F 11F 10F

Price/ Sales (x) 10F

Div Yld (%) 10F 11F

Net Debt /Equity 09E (x)

ROA 09E

ROE 09E

Analyst

n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

1.6x 2.1x 2.7x 1.2x 2.3x 2.2x 3.4x 1.9x

n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

2.2% 1.2% 2.7% 1.9% 1.9% 4.8% 3.5% 2.2%

3.1% 2.3% 2.5% 2.1% 1.9% 4.3% 3.9% 2.6%

cash cash cash cash cash cash cash cash

0.8% 1.0% 1.4% 0.8% 1.2% 0.3% 1.2% 1.1%

9% 12% 16% 10% 17% 3% 24% 15%

Lim Sue Lin Lim Sue Lin Lim Sue Lin Lim Sue Lin Lim Sue Lin Lim Sue Lin Lim Sue Lin Lim Sue Lin

12.9x 13.2x

10.8x 11.3x

4.7x 0.8x

11.9x 3.0x

2.9% 2.5%

3.4% 2.9%

cash cash

10% 3%

23% 4%

Lim Sue Lin San

9.7x 12.4x 17.7x 7.6x 8.7x 5.4x

8.5x 1.8x 12.3x 24.7x 14.9x 6.3x 6.3x 3.1x 7.1x 0.8x 4.5x 2.3x

2.0x 3.2x 7.8x 2.2x 0.3x 2.3x

4.3% 5.1% 2.0% 2.1% 1.7% 7.0%

5.0% 5.0% 2.4% 2.2% 2.2% 8.1%

2.93 1.10 cash 0.01 0.54 cash

6% 51% 18% 9% 2% 23%

25% 177% 23% 18% 6% 27%

Sia Sia Sia Sia Mee Sia

5.1x

4.5x

2.1x

1.1x

1.9%

2.0%

cash

10%

23%

San

9.4x 5.5x 4.5x 5.1x 5.9x 11.3x 5.2x 4.6x 8.3x 5.2x 7.9x

6.8x 5.3x 3.5x 5.0x 5.5x 7.9x 4.2x 3.3x 8.0x 4.7x 8.5x

1.3x 0.7x 0.9x 0.6x 2.3x 1.0x 1.7x 1.2x 2.6x 1.1x 2.9x

0.9x 0.3x 0.8x 0.4x 1.0x 0.4x 2.8x 1.1x 0.6x 0.5x 1.5x

4.8% 1.1% 3.5% 1.1% 2.3% 0.7% 5.8% 2.8% 3.8% 3.7% 3.1%

5.8% 1.1% 3.5% 1.4% 2.3% 2.4% 6.7% 3.5% 5.1% 3.9% 2.5%

0.60 0.70 0.42 0.37 0.45 0.93 cash 0.24 cash 0.97 cash

4% 5% 7% 4% 10% 0% 28% 15% 8% 1% 15%

10% 11% 13% 7% 20% 2% 40% 24% 14% 2% 23%

San Mee Juliana Ramli Mee Mee Mee Sia Chiew Sia / Sia Mee Mee

11.2x

11.9x

9.3x

2.5x

2.3%

2.6%

0.59

(14%) (44%)

team

4.2x 12.7x 1.5x 6.0x

3.7x 11.0x 2.4x 5.5x

1.5x 0.8x 0.5x 1.8x

0.9x 0.6x 0.3x 0.6x

2.7% 2.5% 4.2% 3.3%

2.7% 2.5% 4.2% 3.3%

cash cash cash 0.08

9% 6% (4%) 5%

12% 8% (6%) 12%

Sia Sia Sia Sia

10.8x 11.1x 16.1x 9.7x nm 13.6x 13.0x

9.9x 7.9x 11.9x 9.1x 8.2x 9.9x 10.0x

1.5x 2.6x 1.2x 1.3x 0.7x 1.2x 1.7x

3.1x 3.2x 1.6x 4.4x 1.7x 0.7x 1.1x

0.2% 1.8% 0.0% 0.0% 0.0% 0.9% 0.7%

0.2% 1.8% 0.0% 0.0% 0.0% 0.9% 1.1%

0.96 0.16 0.34 1.01 0.73 1.76 0.26

7% 11% 6% 6% 2% 0% 6%

21% 14% 14% 15% 5% 1% 14%

Lee Wee Keat Lee Wee Keat Lee Wee Keat Lee Wee Keat Lee Wee Keat Lee Wee Keat Lee Wee Keat

nm 16.6x 20.7x

nm 14.5x 9.9x

0.7x 1.3x 2.6x

0.5x 8.4x 1.6x

1.7% 5.5% 0.3%

2.9% 1.8% 3.1%

cash cash 0.10

4% 11% 6%

19% 12% 11%

San San Ben Santoso

Disclosure Legend

MALAYSIA : EARNINGS GUIDE FYE Company Construction Gamuda IJM Corp Lafarge Malayan Cement MMC Corporation Malaysian Resource Sunway Hldgs TRC Synergy WCT

Jul Mar Dec Dec Dec Dec Dec Dec

Sector Concessionaires Litrak PLUS Expressway

Mar Dec

Sector Gaming Berjaya Sports Toto Genting Bhd Genting Malaysia

Apr Dec Dec

Sector Plantation Genting Plantations CB Industrial IJM Plantation IOI Corporation KL Kepong TSH Resources

Dec Dec Mar Jun Sep Dec

Sector Power Petronas Gas Tenaga Nasional YTL Power

Mar Aug Jun

Sector Property Axis REIT Bolton Berhad Eastern & Oriental Bhd KLCC Property Quill Capita Trust SP Setia Sunrise Berhad Sunway City Wing Tai Malaysia

Dec Mar Mar Mar Dec Oct Jun Dec Jun

Sector Telecommunication Axiata Group Digi.Com Maxis Bhd Telekom

Dec Dec Dec Dec

Sector Transport AirAsia Malaysia Airlines

Mkt Cap (RMm)

Mkt Cap (US$m)

7,628 8,498 6,611 8,526 2,790 1,364 263 2,493

2,437 2,714 2,111 2,723 891 436 84 796

38,173

12,193

1,859 21,800

594 6,963

23,659

7,557

5,728 39,209 19,757

1,830 12,524 6,310

64,694

20,664

6,678 508 2,420 38,850 22,482 1,144

2,133 162 773 12,409 7,181 365

72,082

23,023

22,439 36,058 17,374

7,167 11,517 5,549

75,871

24,234

887 340 974 3,167 421 5,643 1,501 2,054 600

283 109 311 1,011 135 1,803 479 656 192

14,987

4,787

38,932 19,329 39,525 12,092

12,435 6,174 12,625 3,862

109,877 Dec Dec

Sector Logistics Malaysia Airports Malaysia Bulk Carriers MISC

Dec Dec Mar

Sector RM/USD Exch rate:

3.13

Price (RM) 16-Dec

Target Price (RM)

% Upside

Rcmd

3.73 6.29 7.78 2.80 2.02 2.25 1.38 3.17

4.90 6.75 5.40 3.85 2.90 2.60 1.85 3.60

31% 7% -31% 38% 44% 16% 34% 14%

Buy Buy FV Buy Buy Buy Buy Buy

3.70 4.36

4.24 10.56 3.34

8.80 3.69 3.02 5.80 21.06 2.76

11.34 8.27 2.39

2.36 1.06 1.18 3.39 1.08 5.55 3.03 4.37 1.86

4.61 24.86 5.27 3.38

3.65 4.60

4.25 14.60 3.70

11.00 4.40 3.80 6.00 21.00 2.95

10.80 10.10 2.75

2.35 1.50 1.40 3.70 1.55 7.00 3.00 5.10 2.25

5.10 22.90 5.10 3.35

-1% 6%

0% 38% 11%

25% 19% 26% 3% 0% 7%

-5% 22% 15%

0% 42% 19% 9% 44% 26% -1% 17% 21%

11% -8% -3% -1%

Hold Hold

Hold Buy Hold

Buy Buy Buy Hold Hold Buy

Hold Buy Hold

Buy Buy Buy Hold Buy Buy Buy Buy Buy

Buy Hold Hold Hold

Share Price Avg Performance (%) 6-mth 3M 6M 12M Vol (m) (0) 26 (2) 1 6 30 33 9

5 3

3 6 4

16 (1) 19 4 23 26

5 (8) 0

10 12 5 (0) 5 27 47 13 22

1 1 (1) 0

24 30 18 14 30 47 17 17

21 30

(3) 48 20

28 46 22 16 31 52

15 (1) 7

17 49 27 12 5 38 59 11 49

19 9 (1) 2

40 37 24 18 58 79 1 24

32 35

1 47 19

44 23 21 5 32 40

15 (2) 9

24 67 18 3 7 54 42 44 41

52 15 (2) 13

7.5 3.5 0.9 2.5 4.5 1.0 0.2 2.0

0.2 7.6

1.6 6.1 7.8

0.7 0.3 0.4 6.8 0.9 0.2

0.7 6.0 4.5

0.1 0.6 4.3 0.6 0.2 1.6 2.2 0.4 0.4

13.2 0.4 3.9 5.7

35,096

7,401 6,584

2,364 2,103

13,985

4,467

6,600 2,880 36,469

2,108 920 11,649

45,949

14,677

2.67 1.97

6.00 2.88 8.17

3.20 1.85

7.60 2.30 8.90

20% -6%

27% -20% 9%

Buy Hold

Buy FV Hold

30 (10)

8 (4) (7)

109 (5)

22 (3) (4)

102 (22)

55 (8) (3)

7.6 2.0

0.4 0.3 1.2

Net Profit (Before EI) 09 10F

11F

EPS (Sen) 10F 11F 13.9 25.1 38.0 11.0 2.9 26.3 10.4 19.3

194 290 412 237 35 109 27 147

281 333 323 334 40 158 20 152

404 421 376 527 71 166 35 178

1,451

1,640

2,179

102 1,185

86 1,254

92 1,540

1,287

1,340

1,632

414 1,146 1,385

382 2,459 1,425

350 2,985 1,479

2,944

4,266

4,814

233 42 123 984 666 51

300 61 79 2,036 902 60

313 78 119 2,462 997 84

2,098

3,439

4,052

929 2,157 1,090

941 2,546 1,212

1,381 2,902 1,160

4,175

4,699

5,443

43 18 (7) 223 32 171 137 223 24

53 28 36 222 222 252 134 177 49

63 30 45 267 34 289 151 191 54

841

1,124

1,070

955 1,000 2,232 613

2,637 1,136 2,252 480

3,093 31.2 1,184 146.2 2,500 30.0 468 13.4

4,801

6,505

7,245

472 (2,293)

677 (862)

17.3 25.1

28.5 66.4 24.1

39.5 44.6 9.9 33.0 84.5 14.6

47.6 58.6 16.7

14.2 8.6 4.9 24.9 8.6 24.8 27.0 37.9 15.2

799 24.5 405 (25.8)

(1,821)

(186)

1,204

285 188 1,405

307 307 703

335 335 1,507

1,878

1,317

2,177

33.1 21.9 15.8

20.0 31.8 44.3 17.3 5.2 27.6 18.5 22.6

18.5 30.8

26.1 80.6 25.1

41.2 56.4 14.6 38.6 93.4 20.2

69.8 66.7 16.0

16.7 9.3 6.1 28.6 8.8 28.4 30.5 40.8 17.0

36.6 152.2 33.3 13.1

29.0 12.1

38.5 22.1 33.8

CAGR 09-11 (%) 44 20 (4) 23 14 10

(5) 14

(8) 61 3

16 36 (13) 53 22 28

22 16 0

3 28 nm 9 3 30 5 (8) 50

71 9 6 (13)

nm nm

22 9 (5)

PE (x) 10F 11F 26.9x 25.1x 20.5x 25.5x 69.3x 8.5x 13.2x 16.4x

18.7x 19.8x 17.6x 16.2x 38.7x 8.2x 7.4x 14.0x

23.3x

17.5x

21.4x 17.4x

19.9x 14.2x

17.7x

14.5x

14.9x 15.9x 13.8x

16.2x 13.1x 13.3x

15.2x

13.4x

22.3x 8.3x 30.4x 17.6x 24.9x 19.0x

21.4x 6.5x 20.7x 15.0x 22.5x 13.7x

21.0x

17.8x

23.8x 14.1x 14.3x

16.2x 12.4x 14.9x

16.1x

13.9x

16.7x 12.3x 23.9x 13.6x 12.5x 22.4x 11.2x 11.5x 12.2x

14.1x 11.4x 19.2x 11.8x 12.3x 19.5x 9.9x 10.7x 10.9x

13.3x

14.0x

14.8x 17.0x 17.6x 25.3x

12.6x 16.3x 15.8x 25.8x

16.9x

15.2x

10.9x nm

9.2x 16.3x

nm

11.6x

18.1x 13.2x 51.9x

15.6x 13.0x 24.2x

34.9x

21.1x

Legend

Note 3

DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA beneficially own a total of 1% or more of any class of common equity securities of these companies.

EV/EBITDA Price/ (x) BV (x) 10F 11F 10F

Price/ Sales (x) 10F

Div Yld (%) 10F 11F

Net Debt /Equity 09E (x)

ROA 09E

ROE 09E

Analyst

29.7x 13.7x 11.4x 9.1x 28.8x 6.9x 2.0x 12.8x

17.8x 12.8x 10.1x 8.1x 23.8x 6.5x 0.9x 11.1x

2.3x 1.6x 2.0x 1.3x 2.4x 1.4x 0.9x 1.8x

3.1x 2.1x 2.7x 1.0x 2.0x 0.6x 0.8x 1.5x

2.4% 1.3% 3.2% 1.3% 0.4% 1.0% 1.9% 2.4%

2.4% 1.3% 3.7% 1.4% 0.6% 1.0% 3.4% 2.4%

0.09 0.48 cash 1.68 1.19 0.57 cash 0.19

3% 3% 10% 1% 1% 5% 6% 3%

6% 7% 13% 4% 5% 16% 10% 12%

San San Yee Mei Hui San San San San San

10.5x 11.0x

10.4x 9.5x

4.3x 3.4x

5.9x 6.4x

4.6% 4.2%

4.6% 4.2%

2.56 1.31

5% 7%

15% 20%

San San

10.1x 7.7x 7.0x

11.4x 12.7x 6.4x 2.5x 6.3x 1.8x

1.7x 2.5x 3.7x

13.6% 1.2% 1.7%

4.6% 1.4% 1.8%

0.05 cash cash

39% 3% 12%

102% 8% 13%

Yee Mei Hui Yee Mei Hui Yee Mei Hui

15.5x 8.5x 14.7x 12.5x 15.0x 13.2x

14.6x 6.7x 11.7x 10.8x 13.9x 11.6x

2.4x 1.7x 2.1x 3.6x 3.7x 1.5x

6.1x 1.7x 5.9x 2.9x 3.0x 1.2x

1.0% 3.0% 1.7% 2.4% 2.1% 1.8%

1.0% 3.8% 0.9% 3.1% 2.3% 1.8%

cash 0.44 cash 0.35 0.08 0.67

9% 8% 12% 6% 7% 5%

10% 18% 15% 12% 11% 10%

Ben Santoso Sia Ben Santoso Ben Santoso Ben Santoso Ben Santoso

11.2x 6.2x 9.4x

7.9x 5.8x 10.0x

2.8x 1.2x 2.4x

7.0x 1.2x 1.3x

4.4% 1.7% 5.5%

4.4% 1.7% 5.5%

cash 0.63 2.77

9% 1% 2%

12% Lee Wee Keat June Ng 4% June Ng 10%

18.7x 6.8x 13.8x 11.1x 15.0x 25.7x 10.0x 5.6x 8.2x

16.4x 7.8x 8.3x 11.1x 14.8x 15.3x 9.0x 5.6x 8.0x

1.2x 0.8x 0.8x 0.8x 0.9x 2.6x 1.4x 0.8x 0.8x

10.0x 1.3x 2.4x 3.6x 6.2x 3.2x 2.5x 1.9x 1.7x

5.9% 2.1% 0.0% 3.2% 7.6% 2.7% 1.6% 8.0% 3.2%

7.0% 2.3% 0.0% 3.7% 7.7% 3.1% 1.8% 1.9% 3.2%

33.1% 0.28 0.81 0.32 0.60 0.18 0.46 0.37 0.09

8% 2% (2%) 5% 4% 5% 9% 10% 2%

12% Lee Wee Keat Yee Mei Hui 5% Yee Mei Hui (5%) Yee Mei Hui 12% Lee Wee Keat 7% Yee Mei Hui 9% Yee Mei Hui 18% Yee Mei Hui 29% Yee Mei Hui 2%

6.2x 8.7x 9.8x 5.1x

5.2x 1.9x 8.3x 14.6x 9.1x 4.6x 5.0x 1.8x

2.4x 3.7x 4.4x 1.4x

2.0% 6.9% 6.7% 5.8%

2.4% 6.1% 7.4% 5.8%

0.55 0.32 0.44 0.41

4% 21% 21% 3%

10% 59% 41% 7%

9.5x nm

8.0x 9.5x

2.0x 4.2x

2.1x 0.5x

0.0% 0.0%

0.0% 0.0%

2.57 cash

5% 12%

26% Juliana Ramli 133% Juliana Ramli

10.0x 12.4x 13.2x

9.9x 12.0x 10.7x

1.9x 1.6x 1.5x

3.5x 7.3x 2.6x

2.8% 4.7% 4.3%

3.2% 4.8% 4.3%

0.13 cash 0.38

7% 10% 4%

12% 13% 7%

Juliana Ramli Juliana Ramli Juliana Ramli Juliana Ramli

Juliana Ramli Juliana Ramli Juliana Ramli

Disclosure Legend

Note 3

HONG KONG BLUE CHIPS : EARNINGS GUIDE FYE Company

Banking and Finance Bank of Communications Bank of China Bank of China HK Bank of East Asia China Life Hang Seng Bank HSBC Holdings HK Exchanges & Clearing ICBC Ping An

Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec

10.70 4.76 24.60 34.00 38.00 123.60 n.a. 238.00 7.17 99.00

Dec Dec Dec Dec Dec Dec Dec Dec Dec

152 63 105 791 133 105 164 203 119 1,836

20 8 13 102 12 14 21 26 15 231

63.05 13.44 30.85 17.70 18.58 49.20 28.35 9.64 7.12

55.20 19.80 44.40 n.a. 18.50 54.40 36.45 n.a. n.a.

-12 47 44 n.a. 0 11 29 n.a. n.a.

review B B NR H review B NR NR

3 -22 1 21 -5 3 0 13 12

14 -16 2 35 2 6 6 10 14

21 -10 -20 48 5 17 8 3 6

Dec Dec Dec Jun Dec Jun Jun Jun

264 121 73 155 115 57 326 79

34 16 9 20 15 7 42 10

113.90 14.76 13.54 34.80 52.95 14.58 126.90 15.06

135.00 19.00 19.10 36.50 58.20 16.78 142.00 18.54

19 29 41 5 10 15 12 23

B B B H review review review B

10 -16 -19 -7 6 9 8 4

27 -2 -10 19 11 16 18 12

15 -13 -26 19 -9 -12 8 -1

1,191

153

332 71 149

43 9 19

806

104

27 110 85 48 35 49 38 174 319

4 14 11 6 5 6 5 22 41

886

114

1,532 268

197 34

1,800

231

Dec Dec Dec

Dec Dec Dec Dec Dec Jun Dec Dec Dec

Dec Dec

Sector ^ underlying profit P /NAV for Property companies *10A

77.90 28.90 54.25

6.93 13.00 21.70 11.74 13.02 37.85 5.37 43.30 173.80

Sector P/Es are calendarised % - fully diluted EPS

76.35 11.38

n.a. 33.03 48.00

n.a. n.a. 27.30 17.10 14.88 40.90 n.a. 45.00 n.a.

69.00 10.00

37 17 -4 5 20 -4 n.a. 36 25 21

Share Price Performance (%) Rcmd 3M 6M 12M

689

Sector Telecom China Mobile China Unicom

7.81 4.06 25.60 32.35 31.70 128.70 79.90 175.30 5.75 82.00

% Upside

5,357

Sector Comm/Ind Aluminium Corp of China Belle Int'l Cathay Pacific China Coal Energy COSCO Pacific Esprit Holdings * Foxconn Int'l Li & Fung Tencent

Target Price (HK$)

27 44 35 8 30 32 182 24 64 30

Sector Hongs/Conglomerates Hutchison China Merchants Hldgs Wharf Holdings #

Price (HK$) 16-Dec

207 340 271 66 236 246 1,413 189 499 234

Sector Power, Infra & Utilities CLP Holdings China Resources Power China Shenhua Energy CNOOC HK & China Gas HK Electric MTR ^ # PetroChina Sinopec Sector Properties Cheung Kong # China Overseas # China Resources Land # Hang Lung Properties # ^ Henderson Land # ^ New World Dev # SHK Properties # ^ Sino Land #*

Mkt Mkt Cap Cap (HK$bn) (US$bn)

n.a. 14 -12

n.a. n.a. 26 46 14 8 n.a. 4 n.a.

-10 -12.1

B B H H review review NR B B B

NR B review

NR NR B B B review NR review NR

review review

-8 5 13 1 3 15 -2 27 -1 13

27 1 16

4 -10 5 0 12 -9 -2 -1 12

-2 -3

-6 8 47 13 -8 23 8 45 1 31

62 17 39

10 22 38 8 42 -14 -5 18 36

0 17

-9 3 46 3 -18 12 -10 28 -7 20

52 26 33

-20 32 49 -16 32 -24 -30 32 9

7 12

Avg 6-mth Vol (m)

352 1,253 454 93 1,670 215 1,813 1,095 1,737 727

PAT/MI (HK$m) 09A 10F

11F

EPS (HK$) 10F 11F

35,142 94,591 13,760 2,565 32,881 13,138 45,505 4,704 150,105 16,187

43,163 115,390 15,379 3,679 36,451 14,251 107,484 5,241 192,348 21,912

53,241 127,467 18,846 4,465 46,132 16,207 140,893 7,976 226,032 27,878

533,144

716,721

862,905

147 133 629 960 113 133 103 836 601

7,484 5,317 36,827 34,420 5,175 6,697 7,303 120,689 72,096 296,009

8,449 5,781 43,821 59,199 4,976 7,343 8,616 155,346 82,067 375,599

8,737 6,429 54,004 65,358 5,376 8,250 8,536 171,166 87,788 415,643

3.51 1.30 2.20 1.33 0.69 3.44 1.49 0.85 0.95

3.63 1.44 2.72 1.49 0.75 3.87 1.48 0.94 1.02

545 405 203 371 231 165 707 211

19,886 7,469 4,409 27,355 6,088 2,084 12,415 3,601

22,251 9,302 4,173 6,674 4,024 11,613 13,883 3,506

140,893 10,388 4,941 4,508 5,086 5,117 17,086 4,086

9.61 1.14 0.83 1.61 1.86 1.57 5.41 0.72

10.32 1.27 0.98 1.06 2.35 1.31 6.65 0.83

83,307

75,426

192,104

14,168 124,437 7,817

14,565 3,552 7,807

20,069 4,089 7,488

163,760

49,515

52,373

-5,420 2,957 4,694 9,128 1,338 184,275 300 3,369 6,018

1,278 3,952 12,824 11,839 2,798 4,226 -979 5,037 9,566

4,041 4,894 12,310 15,020 2,718 3,692 510 6,635 12,684

206,660

50,541

62,504

134,461 10,585

139,857 4,549

146,647 7,918

145,046

144,406

154,565

1,008 153 196

249 217 148 389 115 277 71 310 799

2,269 375

0.83 0.43 1.45 1.76 1.47 7.45 6.04 4.86 0.56 2.98

3.49 1.46 2.83

0.09 0.47 3.26 0.89 1.09 3.35 -0.15 1.33 5.20

6.97 0.19

0.99 0.45 1.78 2.10 1.87 8.48 7.76 7.38 0.64 3.80

4.73 1.68 2.72

0.29 0.58 3.13 1.13 1.00 2.87 0.08 1.67 6.92

7.31 0.33

CAGR 09-11 (%)

19 11 17 23 18 11 72 30 20 31

PE (x) 10F

11F

EV/ EBITDA (x) 10F 11F

P/BV (x) 10F

P/Sales (x) 10F

Div Yld (%) (%) 10F 11F

Latest Rpt Data (%) Gear ROA ROE

n.a. n.a. n.a. n.a. 2.6 n.a. n.a. n.a. n.a. 2.9

n.a. n.a. n.a. n.a. 2.4 n.a. n.a. n.a. n.a. 2.4

1.6 1.5 2.4 1.6 3.9 3.6 1.3 27.2 2.1 5.3

n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

3.0 4.1 3.6 3.3 2.4 4.0 3.3 2.5 3.8 0.9

3.8 4.5 4.4 3.9 1.5 4.9 4.3 3.8 4.5 1.1

n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

9.5 9.4 17.6 18.4 21.5 17.3 13.2 36.0 10.3 27.5

7.9 8.9 14.4 15.4 17.0 15.2 10.3 23.7 8.9 21.6

13.3

11.0

8 10 21 39 -2 11 7 20 11

18.0 10.4 14.0 13.3 26.8 14.3 19.0 11.4 7.5 12.8

17.4 9.3 11.4 11.9 24.8 12.7 19.2 10.2 7.0 11.6

9.5 9.4 7.7 7.3 22.0 14.6 17.0 7.9 5.6

8.9 9.1 6.2 6.4 22.2 14.1 16.8 7.1 5.2

2.1 1.4 2.7 3.3 3.8 1.9 0.8 1.6 1.2

2.9 1.4 3.8 4.1 8.8 10.1 5.7 1.2 0.3

3.9 2.9 2.5 2.7 1.9 4.5 2.0 3.9 3.5

3.9 3.2 3.1 3.0 2.0 5.1 2.0 4.4 3.8

10 18 4 36 -18 54 17 6

11.9 13.0 16.3 21.6 28.5 9.3 23.4 20.9

11.0 11.6 13.8 32.9 22.5 11.2 19.1 18.1

18.6 8.3 10.8 18.1 108.4 15.7 24.5 22.4

16.1 8.4 11.3 26.7 44.4 19.0 21.3 31.9

1.0 0.9 0.6 1.1 0.7 0.5 0.8 0.7

6.8 2.5 3.5 12.9 19.1 1.9 9.8 10.3

2.4 1.6 1.2 2.0 1.9 2.6 2.1 2.7

16.5

15.2

22.3 19.8 19.1

16.5 17.2 20.0

13.0 15.3 16.2

11.1 13.9 15.1

1.1 2.0 0.9

1.6 15.1 7.7

18.0

17.0

75.1 27.8 6.7 13.1 11.9 11.3 n.a. 32.5 33.4

24.2 22.5 6.9 10.4 13.0 13.2 69.1 26.0 25.1

13.0 38.6 5.3 7.7 13.0 9.4 30.5 26.7 26.1

9.2 31.0 4.8 6.1 11.4 7.9 13.3 21.6 19.3

1.5 5.4 1.6 1.8 1.3 3.0 1.4 8.5 16.8

22.1

18.3

11.0 59.5

10.4 34.2

4.4 4.9

3.9 4.3

2.3 1.1

12.0

11.3

19 22 -2

n.a. 28 62 28 30 -13 n.a. 35 44

4 -14

Analyst

1% 19% 1% 17% 1.2% 15% 0.6% 7.6% 21% 9% 2% 24% 0.2% 5% 9% 61% 1% 20% 1.7% 17.5%

Alexander Lee Alexander Lee Alexander Lee Alexander Lee Dennis Lam Alexander Lee n.a. Alexander Lee Alexander Lee Dennis Lam

44% 111% 5% cash 19% 14% 26% 16% 58%

5% 5% 11% 19% 9% 9% 4% 9% 8%

11% 16% 20% 18% 16% 13% 7% 13% 18%

June Ng June Ng J Ng / P H Ho n.a. W K Lee / J Ng J Ng / W K Lee Jeff Yau n.a. n.a.

2.5 1.7 1.5 2.0 1.9 2.6 2.5 2.7

9% 23% 20% Cash 19% 46% 15% 16%

6% 7% 5% 3% 4% 1% 4% 4%

7% 20% 13% 4% 5% 3% 6% 6%

Jeff Yau Carol Wu Carol Wu Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau

2.4 2.2 1.8

2.6 2.5 1.8

70% 32% 19%

2% 6% 4%

6% 10% 7%

n.a. Ken He /P Yong Jeff Yau

0.89 3.91 1.0 2.0 9.6 1.4 0.7 1.4 15.5

0.3 1.7 4.6 1.2 3.3 3.7 0.0 2.5 0.4

1.2 1.6 4.6 1.5 3.1 4.5 0.0 3.1 0.5

104% 1.3% -8.8% cash 13.2% 15.9% 68% -7% -20% cash 10% 16% 38% 7% 10% Cash 35% 46% cash 2% 4% 13% 8% 22% cash 38% 54%

2.7 1.4

3.9 1.6

4.1 1.6

cash 30%

16% 2%

24% 4%

n.a. n.a. Paul Yong P H Ho / J Ng Ken He /P Yong Alice Hui n.a. Patricia Yeung n.a.

TszWang Tam TszWang Tam

DBSV UNIVERSE: HONG KONG FYE Company Banking and Finance (China) Agricultural Bank of China Bank of China Bank of Communications China CITIC Bank China Merchants Bank China Minsheng Bank ICBC

Dec Dec Dec Dec Dec Dec Dec

Sector Banking and Finance (HK) Bank of China HK Bank of East Asia Dah Sing Financial Hang Seng Bank HK Exchanges & Clearing HSBC Holdings Wing Hang

Dec Dec Dec Dec Dec Dec Dec

125 340 207 62 77 27 499

16128 43659 26639 7990 9937 3535 64177

271 66 15 246 189 1413 31

2271 Dec Dec Dec Dec Dec Dec

Sector Conglomerates-HK Wharf Holdings # Wheelock #

Mkt Cap (US$m)

2995

Sector Basic Materials Angang Steel China BlueChem China Coal Energy China Shenhua Energy Maanshan I & S Yanzhou Coal

Mkt Cap (HK$bn)

Dec Dec

Sector

Price (HK$) 16-Dec

Target Price (HK$)

4.08 4.93 4.06 4.76 7.81 10.70 5.01 6.04 19.76 24.50 6.66 8.09 5.75 7.17

% Upside 21 17 37 21 24 21 25

Share Price Avg Performance (%) 6-mth Rcmd 3M 6M 12M Vol (m) B B B B B B B

5 5 (8) 0 (1) (5) (1)

8 8 (6) 1 7 2 1

3 3 (9) (23) 5 (10) (7)

n.a. 1,253 352 249 470 157 1,737

385076 34806 8495 1939 31641 24303 181717 4044

1620 1243 6200 13483 911 5490

225

28947

149 61

19212 7891

321

41216

30 41 27

3885 5237 3445

75834 94591 35142 16988 21277 14123 150105

162829 25.60 32.35 51.50 128.70 175.30 79.90 106.50

24.60 34.00 n.a. 123.60 238.00 n.a. n.a.

(4) 5 n.a. (4) 36 n.a. n.a.

H H NR review B NR NR

13 1 (5) 15 27 (2) 17

47 13 25 23 45 8 45

46 3 25 12 28 (10) 40

454 93 11 215 1,095 1,813 34

11.60 5.46 11.74 30.85 4.09 21.80

12.99 6.40 17.10 44.40 4.97 26.00

12 17 46 44 22 19

review B B B review B

(10) (4) (0) 1 (11) 28

17 13 8 2 17 26

(34) 23 (16) (20) (30) 30

206 39 389 629 124 355

292056

13 10 48 105 7 43

PAT/MI (HK$m) 09A 10F

13760 2565 626 13138 4704 45505 1205

67704 877 1127 9128 36827 458 4797

1127 54.25 48.00 30.20 29.70

(12) (2)

review review

16 24

39 40

33 24

26 26

7817 4442

4442

107135 115390 43163 23369 31069 16558 192348

690455 15379 3679 1163 14251 5241 107484 1596

148792 5277 1493 11839 43821 1639 9409

73478 7807 5004

27910

EPS (HK$) 11F 10F 11F 145223 127467 53241 22453 37653 20315 226032

0.37 0.43 0.83 0.60 1.49 0.62 0.56

0.47 0.45 0.99 0.57 1.82 0.76 0.64

CAGR 09-11 (%) 28 11 19 15 30 12 20

826151 18846 4465 1436 16207 7976 140893 2067

1.45 1.76 4.47 7.45 4.86 6.04 5.36

1.78 2.10 5.52 8.48 7.38 7.76 6.95

17 23 51 11 30 72 31

0.73 0.32 0.89 2.20 0.21 1.91

0.85 0.43 1.13 2.72 0.25 1.98

166 33 28 21 106 42

191891 6185 1988 15020 54004 1937 9735

88869 7488 5578

2.83 2.46

2.72 2.75

(2) 12

24224

PE (x) 10F

11F

11.1 9.4 9.5 8.4 13.2 10.7 10.3

8.8 8.9 7.9 8.7 10.9 8.7 8.9

10.2

8.9

17.6 18.4 11.5 17.3 36.0 13.2 19.9

14.4 15.4 9.3 15.2 23.7 10.3 15.3

15.1

11.9

15.9 16.9 13.1 14.0 19.2 11.4

13.6 12.7 10.4 11.4 16.3 11.0

13.5

11.3

19.1 12.3

20.0 11.0

14.6

16.2

23.6 9.8 14.4

18.6 10.5 12.2

EV/ EBITDA (x) 10F 11F

P/BV (x) 10F

P/Sales (x) 10F

Div Yld (%) (%) 10F 11F

Latest Report Data (%) Gear ROA ROE

Analyst

n.a. n.a. n.a. n.a. n.a. n.a. n.a.

n.a. n.a. n.a. n.a. n.a. n.a. n.a.

2.1 1.5 1.6 1.4 2.7 1.5 2.1

n.a. n.a. n.a. n.a. n.a. n.a. n.a.

4.3 4.1 3.0 3.0 1.8 1.4 3.8

4.0 4.5 3.8 2.9 2.3 1.7 4.5

n.a. n.a. n.a. n.a. n.a. n.a. n.a.

0.8% 1.0% 1.0% 0.9% 1.1% 1.0% 1.2%

20.5% 16.6% 19.2% 13.0% 21.2% 17.1% 20.2%

Alexander Lee Alexander Lee Alexander Lee Alexander Lee Alexander Lee Alexander Lee Alexander Lee

n.a. n.a. n.a. n.a. n.a. n.a. n.a.

n.a. n.a. n.a. n.a. n.a. n.a. n.a.

2.4 1.6 1.1 3.6 27.2 1.3 2.3

n.a. n.a. n.a. n.a. n.a. n.a. n.a.

3.6 3.3 0.0 4.0 2.5 3.3 0.9

4.4 3.9 0.0 4.9 3.8 4.3 3.0

n.a. n.a. n.a. n.a. n.a. n.a. n.a.

1.2% 0.0% 0.7% 1.7% 8.7% 0.2% 0.9%

14.8% 0.1% 5.9% 23.9% 61.4% 5.2% 10.4%

Alexander Lee Alexander Lee n.a. Alexander Lee Alexander Lee n.a. n.a.

7.2 8.4 7.5 7.7 4.6 7.8

6.1 6.2 6.0 6.2 3.9 6.4

1.3 2.1 1.8 2.7 1.0 2.6

0.8 3.2 2.0 3.8 0.4 3.0

3.2 1.7 1.2 2.5 2.6 2.6

3.7 2.3 1.5 3.1 3.1 2.7

57% cash cash 5% 36% 48%

0.8% 7.6% 8.1% 10.8% 0.6% 8.7%

1.4% 9.9% 12.8% 19.9% 1.5% 14.7%

E Y Lee / A Dai Rachel Miu P H Ho / J Ng J Ng / P H Ho E Y Lee / A Dai J Ng / P H Ho

16.2 8.3

15.1 7.2

0.9 0.8

7.7 2.5

1.8 0.4

1.8 0.4

19% 27%

4.4% 1.2%

7.3% 3.6%

Jeff Yau Jeff Yau

13.3 4.5 8.7

11.4 4.3 6.8

4.3 2.8 2.9

10.3 0.9 9.1

0.0 1.0 1.2

0.0 1.0 1.6

cash cash cash

-11.4% -29.6% 8.6% 25.3% 8.2% 22.4%

Rachel Miu Rachel Miu Rachel Miu

Disclosure Legend Note 2

Consumer Goods

Automobiles and Parts Brilliance China Dongfeng Motor Group Geely Automobile

Dec Dec Dec

Sector Food and Beverages China Foods China Mengniu China Yurun Dynasty Fine Wines Kingway Brewery Tingyi Holding Tsingtao Brewery Vitasoy Want Want China Sector

6.05 6.30 14.26 17.50 3.60 4.40

4 23 22

review B review

41 5 22

140 63 37

159 28 (18)

143 351 288

(1901) 7268 1353

1281 12592 1827

1625 11745 2156

0.26 1.46 0.25

0.33 1.36 0.29

n.a. 27 23

98

12566

6719

15700

15525

13.4

12.7

Dec Dec Dec Dec Dec Dec Dec Mar Dec

14 36 48 5 3 109 27 6 87 336

1864 4671 6137 674 414 13981 3525 802 11179 43246

5.19 20.90 26.35 4.20 1.88 19.46 41.85 6.12 6.58

7.60 25.30 35.50 3.70 1.45 18.00 40.00 6.20 6.30

46 21 35 (12) (23) (8) (4) 1 (4)

B B B FV review H H H H

(10) (13) (7) 21 (17) (2) (5) (1) 3

15 (14) 10 24 11 5 10 5 2

(28) (22) 29 83 1 1 4 18 20

34 156 208 10 3 113 66 5 115

568 1302 1745 156 31 2971 1433 217 2431 10804

487 1497 2405 177 69 3687 1763 260 2793 13138

792 1950 2798 206 95 4039 1976 289 3453 15598

0.17 0.86 1.38 0.14 0.04 0.66 1.30 0.26 0.21

0.28 1.12 1.54 0.17 0.06 0.72 1.46 0.28 0.26

18 19 19 15 76 17 16 15 19

29.8 24.3 19.1 29.6 46.5 29.5 32.1 23.9 31.1 26.5

18.3 18.6 17.1 25.4 33.7 26.9 28.6 21.6 25.1 22.4

13.4 12.1 14.1 15.0 10.0 13.9 16.0 12.1 22.3

9.5 9.2 12.2 12.5 8.4 12.0 14.1 11.2 17.6

2.5 3.2 3.5 2.7 1.0 8.0 5.2 4.6 10.8

0.8 1.0 2.5 3.0 1.9 2.1 2.5 2.1 5.1

1.2 0.8 1.4 1.5 0.0 1.7 0.5 4.3 2.7

2.1 1.1 1.6 1.8 0.0 1.9 0.6 4.6 3.4

cash cash cash cash 2% cash cash cash cash

5.0% 7.9% 16.4% 6.9% -1.0% 12.0% 17.5% 16.8% 20.5%

10.7% T Wu / A Hui 17.1% A Hui / T Wu 25.7% A Hui / T Wu 8.8% itus Wu / Alice Hui -1.4% Alice Hui 28.7% Alice Hui 17.5% itus Wu / Alice Hui 16.8% Alice Hui 32.6% A Hui / T Wu

Dec Dec Dec Dec Dec Mar Sep

82 174 22 2 3 13 47

10579 22394 2870 257 440 1699 6086

67.20 43.30 21.20 3.14 3.73 9.78 28.70

75.00 45.00 33.00 3.50 6.90 9.70 26.00

12 4 56 11 85 (1) (9)

B review B review B review H

(8) (1) (10) 18 (28) 22 4

11 18 (18) 10 (20) 27 21

18 32 (21) 138 (32) 29 31

136 310 131 9 16 15 57

2118 3369 1080 96 158 860 3606

2437 5037 1313 111 243 1007 3613

3043 6635 1602 195 420 1101 4271

2.00 1.33 1.25 0.18 0.27 0.76 2.19

2.50 1.67 1.53 0.30 0.46 0.82 2.59

19 35 21 37 54 12 9

33.6 32.5 16.9 17.4 14.0 12.9 13.1

26.9 26.0 13.9 10.4 8.1 11.9 11.1

23.4 26.7 9.9 9.7 7.8 8.8 8.9

18.8 21.6 7.9 5.7 5.7 7.8 8.0

8.1 8.5 5.8 2.1 1.0 2.9 1.8

6.2 0.1 0.2 1.8 2.0 1.3 1.1

1.9 2.5 2.4 2.3 1.8 4.9 3.4

2.4 3.1 2.9 3.8 3.1 5.5 4.1

cash 13% cash cash cash 2% 10%

13.3% 8.5% 20.3% 9.3% 4.5% 14.6% 9.4%

20.7% 21.6% 39.6% 12.4% 5.5% 26.2% 16.9%

Patricia Yeung Patricia Yeung Alice Hui Patricia Yeung Patricia Yeung Alice Hui Patricia Yeung

345

44325

24.0

19.5

34 131 67 87

4352 16807 8674 11234

25.5 24.0 19.2 23.2

16.3 20.1 15.5 18.9

19.3 14.9 12.3 17.1

12.3 12.5 10.1 13.7

3.7 3.8 6.6 11.3

1.7 3.9 1.2 4.0

0.0 0.0 2.6 4.5

0.0 0.0 3.2 2.1

15% 52% cash 74%

4.7% 3.0% 4.3% 15.5%

11.7% 8.7% 11.5% 91.8%

Research Team Research Team Research Team Research Team

319

41066

22.7

18.2

Household/Personal Hengan Li & Fung Li Ning Ming Fai Neo-Neon Texwinca * Yue Yuen

Sector

11198

13763

17267

Consumer Services

Gambling Galaxy^ Sands China SJM Wynn Macau

Sector

Dec Dec Dec Dec

8.56 9.00 16.24 18.80 12.44 14.40 16.84 15.90

5 16 16 (6)

review B B H

28 27 52 23

134 44 102 40

146 57 174 87

52 141 178 109

113 1658 907 2069

4746

1320 5456 3539 3769

14084

2070 6495 4363 4634

17561

0.34 0.68 0.65 0.73

0.53 0.81 0.80 0.89

329 98 119 50

Note 2

DBSV UNIVERSE: HONG KONG FYE Company

Mkt Cap (HK$bn)

Mkt Cap (US$m)

4 2 49 7 4 43 48 7 34 11 2 35 14 11

548 221 6272 871 481 5521 6117 957 4415 1405 252 4537 1788 1369

270

34754

3 2 18

326 252 2292

22

2870

13 38 11 85 13 12 20 5 4

1721 4864 1369 10977 1618 1563 2508 671 465

197

25292

30 20 24 20 21

3798 2617 3095 2613 2708

115

14830

6 6 6 18 35 27 53 2 3

746 780 790 2327 4454 3425 6870 208 414

Price (HK$) 16-Dec

Target Price (HK$)

% Upside

15.96 10.84 40.90 5.50 3.06 18.36 3.69 36.85 16.80 8.94 4.93 14.71 4.91 17.01

(3) 15 8 21 (13) (17) 29 3 (18) 38 18 17 (1) (14)

Share Price Avg Performance (%) 6-mth Rcmd 3M 6M 12M Vol (m)

PAT/MI (HK$m) 09A 10F

EPS (HK$) 11F 10F 11F

CAGR 09-11 (%)

PE (x) 10F

11F

EV/ EBITDA (x) 10F 11F

P/BV (x) 10F

P/Sales (x) 10F

Div Yld (%) (%) 10F 11F

Latest Report Data (%) Gear ROA ROE

Analyst

Disclosure Legend

Retailers Aeon Stores Beijing Jingkelong % Esprit Holdings * Giordano Glorious Sun Golden Eagle % Gome Elec Appliances % Lianhua Supermarket Lifestyle New World Dept Stores * Oriental Watch * Parkson Sa Sa Wumart

Dec Dec Jun Dec Dec Dec Dec Dec Dec Jun Mar Dec Mar Dec

Sector Media Next Media Pico Far East TVB

Mar Oct Dec

Sector Travel & Leisure Ajisen China Air China Cafe de Coral * Cathay Pacific China Eastern Airlines China Southern Airlines HK & Shanghai Hotels Little Sheep Tai Cheung * #

Dec Dec Mar Dec Dec Dec Dec Dec Mar

Sector Construction and Materials China Comm Construction China Railway Construction China Railway Group China South Locomotive China State Construction

Dec Dec Dec Dec Dec

Sector Industrial AMVIG China Automation China High Precision Automation * China High Speed Huabao * Lee and Man Paper * Nine Dragons * Sinoref Solargiga Energy

Dec Dec Jun Dec Mar Mar Jun Dec Dec

Sector Infrastructure, Environmental Beijing Enterprises Water % China Everbright Intl New Environmental Energy % Tianjin Cap Environmental Sector Insurance China Life China Pacific Insurance PICC Ping An

Sector

13 (5) (9) (2) 23 11 20 18 10 (12) 31 (11) 67 11

46 18 (14) 37 18 36 9 22 33 (0) 118 (2) 65 32

27 44 (24) 105 28 43 1 71 45 (12) 156 (12) 109 56

1 4 277 13 2 50 376 20 18 13 15 60 34 17

280 173 4745 288 260 809 1643 581 1142 547 100 1066 316 502

12452 1.05 1.09 1.62 1.91 40.70 45.17

4 18 11

review B B

1 17 4

(11) 20 14

3 (2) 13

2 2 47

12.50 8.29 18.92 21.70 3.60 4.35 13.18 5.06 5.85

13.00 11.45 18.70 27.30 4.00 6.75 12.90 6.60 6.37

4 38 (1) 26 11 55 (2) 30 9

H B H B H B H B review

11 (10) (14) 5 (17) 5 2 (3) 15

51 1 (2) 38 6 28 5 18 34

82 47 6 49 29 69 16 23 28

23 167 11 148 88 115 6 5 2

6.67 8.00 9.80 12.60 5.72 7.77 10.04 8.90 7.07 7.20

20 29 36 (11) 2

B B B review review

(7) (10) (4) 42 57

(5) 2 11 81 213

(8) 2 (5) 87 117

133 133 120 75 62

(12) 21 13 60 29 34 48 25 29

H B review B B B B B B

24 9 43 (23) (4) (5) (6) 87 3

34 12 21 (22) 11 (5) 9 n.a. 29

86 6 38 (29) 36 12 (11) n.a. (13)

12 9 22 195 53 90 138 n.a. 7

20925

13 15 1 1 29

1615 1926 86 124 3751

2.75 4.10 0.66 2.84

3.70 4.90 2.10 2.61

35 20 218 0

B B B H

12 17 32 11

5 24 (20) 27

11 11 (72) 3

23 33 7 4

Dec Dec Dec Dec

236 67 36 234

30333 8671 4658 30134

31.70 29.15 10.48 82.00

38.00 43.00 14.64 99.00

20 48 40 21

review B B B

3 1 3 13

(8) (5) 35 31

(18) n.a. 51 20

1,670 274 191 727

574

73796

Dec Dec Dec

63 9 13

8149 1173 1619

1282

1544

1669

314 5667 442 4694 197 385 2298 181 211

428 14724 513 12824 6450 7234 445 228 275

558 13323 517 12310 4909 7318 593 304 448

8229 7669 8004 1947 613

85

10941

Dec Dec Dec Dec

152 133 105 79

19509 17161 13503 10102

469

60275

47 7 17

B H review

(22) (18) (14)

(16) (16) (6)

(10) (17) (6)

133 78 100

63.05 18.58 49.20 34.85

(12) (0) 11 27

review H review B

3 (5) 3 12

14 2 6 26

21 5 17 20

147 113 133 44

10349 5940 9646 2981 901

29816

365 247 234 1103 1110 302 1926 82 (114)

551 339 266 1609 1340 1833 2512 158 235

6098

9616

1.08 0.49 2.87 0.37 0.28 0.68 0.17 1.38 0.79 0.38 0.41 0.58 0.18 0.65

25 8 (13) 38 7 27 34 21 17 8 15 23 26 26

0.13 0.15 2.51

0.10 0.15 2.82

(1) 22 17

0.40 1.14 0.92 3.26 0.57 0.74 0.30 0.22 0.45

0.52 1.03 0.93 3.13 0.44 0.75 0.40 0.29 0.72

33 49 8 62 na 294 na 29 46

0.70 0.48 0.45 0.25 0.30

0.82 0.93 0.55 0.32 0.44

22 22 21 40 39

39832 12206 11503 11688 3800 1290

40486 564 467 395 1893 1619 1775 3507 177 411

0.60 0.34 0.29 1.29 0.43 0.40 0.56 0.13 0.13

0.61 0.46 0.38 1.52 0.52 0.39 0.76 0.15 0.23

35 35 10 31 20 142 31 28 n.a.

15.1 19.2 13.2 12.3 12.7 32.4 17.1 26.1 26.0 17.1 10.2 21.8 27.5 30.5

21.9

18.9

7.9 11.0 16.2

10.0 10.5 14.5

14.4

13.1

31.2 7.3 20.5 6.7 6.3 5.9 43.6 22.9 13.1

24.0 8.0 20.4 6.9 8.3 5.8 32.7 17.2 8.1

8.3

8.7

9.6 20.4 12.6 40.0 23.2

8.1 10.5 10.4 31.3 16.2

15.6

11.7

10.5 17.7 20.7 10.2 25.5 14.1 20.6 10.3 13.5

10.3 12.8 15.5 8.7 21.3 14.6 15.1 9.1 7.7

8.8 9.2 9.4 7.6 5.1 24.5 7.7 11.3 18.8 8.1 10.2 16.3 51.5 19.8

7.0 8.1 8.0 6.8 n.a. 18.9 5.8 8.9 15.1 7.5 8.1 12.4 39.4 15.5

3.3 2.2 3.0 2.8 1.7 11.9 2.9 6.8 5.0 2.2 1.2 6.7 11.6 5.9

0.5 0.2 1.4 1.5 0.6 15.8 0.8 0.7 0.8 5.5 0.3 6.8 1.3 1.6

2.6 2.9 3.7 5.8 4.9 0.7 1.0 1.1 1.4 2.3 1.1 1.6 2.8 1.0

3.3 2.6 4.5 6.5 5.5 0.9 1.3 1.3 1.6 2.6 1.9 2.1 2.5 1.3

cash 73% Cash cash cash cash cash cash cash cash 16% cash cash cash

6.9% 3.3% 51.6% 10.7% 27.3% 14.2% 4.5% 3.5% 10.0% 12.2% 6.3% 8.9% 24.7% 6.9%

20.3% 10.9% 27.7% 14.5% 4.3% 40.8% 13.8% 20.5% 20.2% 19.2% 8.5% 27.0% 32.9% 18.6%

Mavis Hui Mavis Hui Alice Hui Alice Hui Alice Hui Mavis Hui Mavis Hui Mavis Hui Mavis Hui Mavis Hui Mavis Hui Mavis Hui Mavis Hui Mavis Hui

3.7 4.9 8.8

5.0 4.7 7.9

0.7 1.8 2.9

0.8 0.7 3.9

0.0 4.6 4.0

0.0 4.7 4.5

cash cash cash

11.3% 6.4% 13.1%

15.4% 13.5% 15.8%

Mavis Hui Mavis Hui Mavis Hui

16.7 6.1 11.9 5.3 6.1 5.0 n.a. 12.6 10.3

12.6 6.1 11.4 4.8 6.2 4.5 n.a. 9.6 5.9

5.0 2.5 3.7 1.6 2.6 1.3 0.7 3.9 0.5

5.1 1.1 2.2 1.0 0.4 0.4 4.5 2.3 6.4

1.4 0.0 3.3 4.6 0.0 0.0 0.7 1.7 4.6

1.9 cash 0.0 251% 3.4 cash 4.6 62% 0.0 2563% 0.0 409% 0.8 9% 2.3 cash 5.1 Cash

11.7% 4.7% 17.7% 4.1% 0.2% 0.4% 0.7% 12.8% 6.6%

13.7% 22.1% 19.6% 11.9% -2.8% 3.8% 10.5% 15.8% 7.0%

T Wu / A Hui P Yong / T Hsu Alice Hui Paul Yong P Yong / T Hsu P Yong / T Hsu Ken Chen T Wu / A Hui Jeff Yau

6.7 5.1 6.8 20.4 15.7

5.1 2.8 5.7 16.4 11.5

1.4 1.8 1.5 5.3 4.2

0.3 0.2 0.3 1.3 1.4

2.1 1.2 1.6 0.7 1.3

2.5 2.2 1.9 0.9 1.9

55% cash 6% cash cash

3.0% 2.6% 2.4% 3.3% 5.5%

15.0% 13.1% 11.8% 10.1% 17.9%

Rachel Miu Rachel Miu Rachel Miu Rachel Miu Rachel Miu

5.4 12.1 11.9 8.4 21.1 11.7 14.7 5.8 10.9

4.5 8.8 9.7 6.8 17.2 12.0 11.7 5.0 6.6

1.2 3.4 3.0 2.6 9.1 2.5 2.4 2.6 1.7

2.1 3.3 7.9 2.1 14.6 2.4 2.6 4.2 1.5

2.8 1.3 0.8 2.8 1.9 2.4 1.2 2.9 2.6

2.9 1.9 0.8 3.3 1.4 1.7 1.7 3.3 4.5

1% cash cash 74% cash 81% 83% cash 9%

4.5% 11.9% 31.9% 10.3% 31.2% 11.4% 5.0% 47.8% -5.1%

6.7% 19.4% 53.5% 23.7% 40.4% 19.7% 11.3% 59.1% -7.4%

Patricia Yeung Rachel Miu Patricia Yeung Dennis Lam Patricia Yeung Patricia Yeung Patricia Yeung E Y Lee / A Dai Dennis Lam

15.3

12.3

407 539 238 299 1482

816 768 377 271 2233

0.09 0.15 0.10 0.21

0.18 0.21 0.13 0.19

110 36 n.a. (1)

29.3 27.7 6.6 13.6 25.5

15.3 19.4 4.9 15.0 16.3

21.5 18.8 5.6 4.1

15.3 14.9 6.0 3.6

3.4 2.9 0.3 0.9

2.1 5.5 0.8 0.9

0.0 0.5 0.0 1.1

0.0 0.8 0.0 1.0

77% 25% 95% 78%

3.1% 5.0% -3.7% 3.3%

8.8% 10.1% -9.8% 7.6%

Patricia Yeung Patricia Yeung Patricia Yeung Patricia Yeung

32881 8203 2073 16187

36451 8645 5687 21912

46132 10201 7656 27878

1.47 1.01 0.51 2.98

1.87 1.19 0.69 3.80

18 12 92 31

21.5 29.0 20.5 27.5

17.0 24.5 15.3 21.6

2.6 2.1 n.a. 2.9

2.4 1.8 n.a. 2.4

3.9 2.4 4.7 5.3

2.9 2.7 36.4 -52.0

2.4 1.0 0.0 0.9

1.5 1.2 0.0. 1.1

n.a. n.a. n.a. n.a.

21.2% 2.1% 1.2% 1.7%

8.6% 10.0% 8.6% 17.5%

Dennis Lam Dennis Lam Dennis Lam Dennis Lam

24.3

19.2

10.4 15.1 9.7

9.3 11.2 8.9

9.2 11.1 9.3

8.9 10.7 9.1

1.4 1.0 1.0

1.4 0.5 0.5

2.9 3.4 3.1

3.2 4.6 3.4

111% 398% 244%

5.4% 0.9% 2.7%

16.4% 6.1% 12.5%

June Ng June Ng June Ng

18.0 26.8 14.3 16.5

17.4 9.5 24.8 23.9 12.7 14.6 12.9 122.1

9.3 22.2 14.1 124.1

2.1 3.8 1.9 1.8

2.9 8.8 10.1 31.9

3.9 1.9 4.5 3.7

3.9 2.0 5.1 4.0

44% 19% 14% cash

7.7% 8.8% 11.5% 11.5%

16.4% 16.3% 16.8% 14.1%

June Ng W K Lee / J Ng J Ng / W K Lee June Ng

18.4

16.5

5317 1856 5675

7484 5175 6697 5568

24924

72696 5781 2141 5104

13026 8449 4976 7343 4750

25519

11744

19.0 18.8 11.3 13.7 14.2 41.6 22.1 31.1 30.1 22.7 13.7 28.5 36.1 39.1

193 372 (94) 278 650

12849 55.20 18.50 54.40 44.20

42846

0.86 0.50 3.35 0.33 0.25 0.53 0.13 1.16 0.68 0.29 0.30 0.44 0.14 0.51

15347 252 184 1233

59344 13.44 19.80 2.75 2.95 4.12 4.80

13601

282 262 3692 548 294 1308 2978 857 1311 707 159 1613 503 833

270 177 1097

26462 6.28 5.50 5.95 7.20 5.92 6.70 13.16 21.00 11.00 14.20 5.68 7.60 11.46 17.00 1.35 1.69 1.78 2.30

273 222 4226 493 264 1018 2303 720 1135 570 113 1235 381 650

257 124 900

13864

163

Sector Power, Infra & Utilities CLP Holdings HK & China Gas HK Electric Cheung Kong Infrastructure

review B review B H review B review review B B B review review

Dec Dec Dec Dec

Sector Power (China) China Resources Power Datang Intl Huaneng Power

16.38 9.45 37.85 4.53 3.53 22.10 2.85 35.95 20.45 6.48 4.18 12.56 4.97 19.84

91868 6429 2904 5558

1.30 0.18 0.42

1.44 0.25 0.46

10 25 (1)

3.51 0.69 3.44 2.11

3.63 0.75 3.87 2.71

8 (2) 11 5

14890 8737 5376 8250 6111

28475

10.6

9.4

Note 2

Note 2

DBSV UNIVERSE: HONG KONG FYE Company Properties-China Agile Property CC Land # China Overseas # China Resources Land # Franshion Properties # Shimao Property # Shui On Land # Sino-Ocean Land # Soho China # SPG Land #

Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec

Sector Properties-HK Cheung Kong # Great Eagle # Hang Lung Group # ^ Hang Lung Properties # ^ Henderson Land # ^ Hongkong Land ^ # @ Hysan Development # K Wah Intl Kerry Properties # MTR ^ # New World Dev # SHK Properties # ^ Sino Land #* Tai Cheung * #

Dec Dec Jun Jun Dec Dec Dec Dec Dec Dec Jun Jun Jun Mar

Sector Transportation - Toll Road Anhui Expressway Jiangsu Expressway Hopewell Highway* Shenzhen Expressway Sichuan Expressway Zhejiang Expressway

Mkt Cap (US$m)

39 7 121 73 22 41 20 29 30 4

5055 905 15512 9379 2780 5301 2614 3683 3883 488

339

43640

264 14 67 155 115 123 36 7 58 164 57 326 79 4

33925 1858 15803 19995 14816 15868 4633 932 7479 21043 7346 41939 10187 465

1471 Dec Dec Jun Dec Dec Dec

443 1259 2220 439 616 1348

49

6325

8 71 35 4 11 1

981 9134 4540 459 1425 189

130

16728

Dec Dec Mar Dec

27 33 50 11

3411 4207 6426 1445

120

15489

Dec Dec Dec

1532 268 55

197002 34481 7031

Dec Dec Dec Dec Dec Dec

Sector

Price (HK$) 16-Dec

Target Price (HK$)

% Upside

Share Price Avg Performance (%) 6-mth Rcmd 3M 6M 12M Vol (m)

11.32 2.75 14.76 13.54 2.36 11.62 3.90 5.08 5.82 3.61

14.93 2.31 19.00 19.10 2.88 14.30 3.95 5.49 6.18 3.14

32 (16) 29 41 22 23 1 8 6 (13)

B FV B B B B H review H H

18 (15) (16) (19) (0) (13) 1 (5) 8 (2)

44 2 (2) (10) 6 (2) 17 (12) 34 16

2 (25) (13) (26) (14) (23) (12) (29) 47 (28)

148 19 405 203 21 214 52 86 46 4

113.90 23.20 50.05 34.80 52.95 7.05 34.20 2.84 40.50 28.35 14.58 126.90 15.06 5.85

135.00 26.60 42.90 36.50 58.20 6.25 32.00 3.89 50.15 36.45 16.78 142.00 18.54 6.37

19 15 (14) 5 10 (11) (6) 37 24 29 15 12 23 9

B B review H review review review B B B review review B review

10 2 2 (7) 6 15 25 (3) (1) 0 9 8 4 15

27 13 25 19 11 35 61 18 18 6 16 18 12 34

15 11 32 19 (9) 42 51 (1) (2) 8 (12) 8 (1) 28

545 19 43 371 231 12 44 27 100 103 165 707 211 2

PAT/MI (HK$m) 09A 10F 2175 (58) 7469 4409 1174 4105 3119 1817 3850 779

25885

189161

3 10 17 3 5 10

Sector Transportation - Services Beijing Capital Intl Airport China Merchants Hldgs COSCO Pacific Dalian Port Tianjin Port Xiamen Int'l Port

Mkt Cap (HK$bn)

19886 1276 1454 2388 6088 777 1113 916 2146 7303 2084 12415 3601 211

29578 6.98 8.01 5.83 4.57 5.35 7.31

9.10 9.32 5.96 5.02 5.84 7.52

4.06 5.30 28.90 33.03 13.02 14.88 3.36 4.07 1.80 1.84 1.49 1.61

30 16 2 10 9 3

31 14 14 21 2 8

B B H review H H

B B B B H H

36 1 1 15 (5) 5

4 1 12 6 3 1

59 13 11 32 24 3

(8) 17 42 9 4 11

30 17 24 25 34 (1)

(17) 26 32 18 (37) 6

12 34 8 13 13 50

35 153 115 11 19 6

5603 27 9302 4173 972 4332 2275 2319 3663 409

27062 22251 1351 3695 6674 4024 801 1157 789 2914 8616 11613 13883 3506 275

81550

EPS (HK$) 11F 10F 11F 4153 412 10388 4941 815 4424 1268 2290 1694 1372

CAGR 09-11 (%)

1.59 0.01 1.14 0.83 0.11 1.21 0.45 0.41 0.71 0.40

1.20 0.16 1.27 0.98 0.09 1.23 0.25 0.41 0.22 1.34

41 n.a. 18 4 (22) 4 (38) 12 (46) 33

9.61 2.17 2.76 1.61 1.86 0.36 1.10 0.32 2.03 1.49 1.57 5.41 0.72 0.45

10.32 2.13 2.24 1.06 2.35 0.26 1.15 0.62 2.83 1.48 1.31 6.65 0.83 0.72

10 2 43 36 (9) (13) 4 29 37 7 54 17 6 46

26232 23898 1329 2999 4508 5086 588 1213 1525 4057 8536 5117 17086 4086 448

80476

775 2350 1059 631 947 2097

887 2877 956 734 1336 1987

1208 2948 824 833 1794 2078

7859

8778

9685

350 3238 1338 707 (48) 235

558 3552 2798 746 560 288

789 4089 2718 890 683 324

5820

8502

9493

718 935 (1755) 1095

1154 3074 1003 1184

1626 2952 2149 1392

0.53 0.57 0.32 0.34 0.44 0.46

0.13 1.46 1.09 0.26 0.09 0.11

0.73 0.59 0.28 0.38 0.59 0.48

0.18 1.68 1.00 0.30 0.11 0.12

25 12 (12) 15 31 (0)

50 22 30 12 n.a. 17

PE (x) 10F

11F

EV/ EBITDA (x) 10F 11F

P/BV (x) 10F

P/Sales (x) 10F

4.9 1.6 8.4 7.7 3.1 7.2 15.2 0.9 5.5 1.3

0.5 0.6 0.9 0.6 0.6 0.6 0.6 0.7 0.8 0.5

1.5 3.8 2.5 3.5 3.1 1.7 3.1 2.0 1.7 0.8

3.5 0.0 1.6 1.2 0.9 3.2 2.5 2.0 3.6 3.3

2.6 1.2 1.7 1.5 0.7 3.5 1.8 2.0 1.1 11.1

42% 4% 23% 20% 72% 51% 34% 18% Cash 18%

4.7% -0.3% 7.5% 5.3% 2.7% 2.0% 6.8% 3.4% 10.3% 5.2%

16.1 10.9 9.3 26.7 44.4 25.4 27.0 5.7 29.4 16.8 19.0 21.3 31.9 5.9

1.0 0.5 0.9 1.1 0.7 1.1 0.9 0.5 0.7 0.8 0.5 0.8 0.7 0.5

6.8 3.0 5.4 12.9 19.1 11.3 20.4 2.2 2.8 5.7 1.9 9.8 10.3 6.4

2.4 2.3 1.5 2.0 1.9 2.3 2.0 3.9 2.2 2.0 2.6 2.1 2.7 4.6

2.5 2.3 1.5 2.0 1.9 2.3 2.0 4.9 3.0 2.0 2.6 2.5 2.7 5.1

9% 12% 5% Cash 19% 19% 6% 37% 18% 26% 46% 15% 16% Cash

6.8% 4.9% 1.5% 6.7% 3.3% 4.2% 2.6% 6.0% 2.6% 4.3% 1.2% 4.4% 4.1% 6.6%

8.5% 6.3% 3.9% 8.5% 4.8% 6.5% 3.4% 11.3% 4.4% 7.2% 2.8% 6.0% 6.1% 7.0%

Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau Jeff Yau

6.9 8.8 12.4 12.2 7.4 6.8

5.1 8.4 13.3 10.8 7.5 6.2

1.7 2.1 2.1 1.0 1.7 1.9

2.9 5.5 8.9 2.0 5.2 4.3

3.8 5.4 5.5 3.6 3.3 4.4

5.2 5.6 4.7 4.1 4.4 4.6

34% 45% 28% 108% 11% cash

7.2% 8.6% 11.4% 2.7% 6.7% 7.2%

12.7% 13.6% 17.7% 7.1% 10.0% 14.1%

P Yong / T Hsu P Yong / T Hsu P Yong / T Hsu P Yong / T Hsu P Yong / T Hsu P Yong / T Hsu

12.3 15.0 13.0 9.7 9.5 6.3

11.2 13.5 11.4 8.1 8.5 5.6

1.2 2.0 1.3 1.3 1.3 0.9

2.7 17.1 7.9 4.6 0.2 1.7

1.0 2.2 3.3 3.2 2.0 4.7

1.5 2.5 3.1 3.6 2.5 5.3

165% 32% 41% 30% 18% cash

0.8% 6.3% 3.9% 5.7% -0.9% 3.1%

2.4% 10.1% 6.5% 9.3% -1.3% 5.4%

T Hsu / P Yong Ken He /P Yong Ken He /P Yong Ken He /P Yong Ken He /P Yong Ken He /P Yong

16.3 8.3 10.0 5.8

11.4 8.2 7.2 5.3

5.4 6.3 3.9 0.9

11.6 6.1 0.4 0.2

1.7 5.2 1.1 3.2

2.4 5.0 1.6 3.7

Cash cash cash cash

15.5% 21.9% 1.7% 3.8%

18.5% 29.8% 8.9% 9.8%

Steven Zhang Steven Zhang Steven Zhang Steven Zhang

4.4 4.9 4.3

3.9 4.3 3.9

2.3 1.1 1.2

2.7 1.4 1.2

3.9 1.6 2.2

4.1 1.6 2.2

cash 30% 32%

16.4% 2.4% 3.1%

24.3% 4.4% 6.1%

TszWang Tam TszWang Tam TszWang Tam

nmf nmf nmf nmf

nmf nmf nmf nmf

0.8 0.7 0.7 1.4

11.8 8.0 8.7 10.8

5.0 6.1 6.4 4.0

4.7 6.3 6.9 4.5

32% 23% 33% 24%

8.5% 3.2% 1.6% n.a.

14.6% 4.5% 5.6% n.a.

Jeff Yau Jeff Yau Jeff Yau Jeff Yau

7.1 257.5 13.0 16.3 22.3 9.6 8.6 12.3 8.2 9.1

9.5 5.8 17.1 160.7 11.6 8.3 13.8 10.8 26.5 11.4 9.4 10.1 15.5 16.6 12.5 11.8 26.7 4.3 2.7 7.8

11.6

12.2

11.9 10.7 18.1 21.6 28.5 19.8 31.1 8.9 19.9 19.0 9.3 23.4 20.9 13.1

11.0 18.6 10.9 11.0 22.3 31.9 32.9 18.1 22.5 108.4 27.0 22.1 29.6 28.3 4.6 10.3 14.3 18.4 19.2 17.0 11.2 15.7 19.1 24.5 18.1 22.4 8.1 10.3

17.7

16.5

13.1 14.0 18.1 13.6 12.2 16.0

9.6 13.7 20.9 12.0 9.1 15.3

15.6

14.4

31.5 19.8 11.9 13.2 19.8 14.1

22.3 17.2 13.0 11.0 16.2 12.6

16.8

15.7

23.0 10.6 45.4 9.5

16.3 11.1 22.1 8.1

17.1

14.6

11.0 59.5 18.8

10.4 34.2 15.0

12.6

11.7

nmf nmf nmf nmf

nmf nmf nmf nmf

nmf

nmf

Div Yld (%) (%) 10F 11F

Latest Report Data (%) Gear ROA ROE

Analyst

Disclosure Legend

13.8% Carol W / Andy Y -0.6% Carol Wu 19.8% Carol Wu 13.0% Carol Wu 7.8% Carol Wu 4.5% Carol Wu 13.9% Carol Wu 7.9% Carol Wu 21.1% Carol Wu 19.1% Carol Wu

Technology

Hardware & Equipment AAC Acoustics ASM Pacific Lenovo Group * TPV Technology

Sector Telecom China Mobile China Unicom China Telecom

Sector Real Estate Investment Trust ** Champion REIT Fortune REIT Prosperity REIT The Link REIT *

Sector ^ underlying profit # P /NAV for Property companies Sector P/Es are calendarised % - fully diluted EPS * 10A ~ Core profit and EPS

1855 Dec Dec Dec Mar

21.60 22.55 82.95 82.30 4.99 5.70 4.79 5.35

4 (1) 14 12

review review review H

37 26 6 4

101 35 14 4

78 19 12 4

60 59 217 10

76.35 69.00 11.38 10.00 3.94 4.90

(10) (12) 24

review review B

(2) (3) (6)

(0) 17 2

7 12 20

2,269 375 226

238514

22 7 2 54

2885 848 299 6929

89

11431

4023

6415

8120

134461 10585 15494

139857 4549 17001

146647 7918 21189

170108 4.55 3.86 3.95 4.60 1.74 1.95 24.30 28.15

(15) 16 12 16

review B B B

Note 2:

Note 3: Note 4: Note 5:

15 2 7 6

28 14 24 22

44 31 34 30

24 4 3 150

161407

0.94 7.80 0.11 0.50

1.32 7.49 0.23 0.59

50 78 n.a. 7

6.97 0.19 0.21

7.31 0.33 0.26

4 (14) 17

175754

1242 338 145 1819

1068 399 148 2134

1036 417 162 2408

3814

3936

4234

n.a. n.a. n.a. n.a.

n.a. n.a. n.a. n.a.

n.a. n.a. n.a. n.a.

DBSVHK, DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA, within the past 12 months, have received compensation and/or within the next 3 months seek to obtain compensation for investment banking services from these companies. DBSVHK, DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA beneficially own a total of 1% or more of any class of common equity securities of these companies. DBSVHK, DBSVR, DBSVS, DBS Bank Ltd and/or other affiliates of DBSVUSA beneficially own a total of 5% or more of any class of common equity securities of these companies. Dual listing in Singapore under FRT SP

Note 2, 3, 4, 5

THAILAND : EARNINGS GUIDE FYE Company AGRO & FOOD INDUSTRY Food and Beverage Minor International Charoen Pokphand Foods Thai Vegetable Oil Thai Union Frozen Products

Dec Dec Dec Dec

Sector FINANCIALS Banks Bank of Ayudhya Bangkok Bank KASIKORNBANK Krung Thai Bank Siam Commercial Bank Thanachart Capital Tisco Financial Group

Dec Dec Dec Dec Dec Dec Dec

Sector Finance Kim Eng Securities Phatra Securities

Dec Dec

Sector INDUSTRIAL Petrochemicals & Chemicals Indorama Ventures PTT Chemical

Dec Dec

Sector PROPERTY & CONSTRUCTION Construction Materials Tata Steel (Thailand)** Siam Cement

Mar Dec

Sector Property Amata Corporation Dec Asian Property Development Dec Ch. Karnchang Dec Central Pattana Dec CPN Retail Growth Leasehold PropertyDec Italian-Thai Development Dec Hemaraj Land And Development Dec Land & Houses Dec L.P.N. Development Dec Preuksa Real Estate Dec Quality Houses Dec Rojana Industrial Park Dec Sansiri Dec Supalai Dec Samui Airport Property Fund Dec Sino-Thai Engineering & Con. Dec

Sector RESOURCES Energy Banpu PTT PTT Exploration & Production Thai Oil PCL

Dec Dec Dec Dec

Sector SERVICES Commerce Big C Supercenter CP ALL Home Products Center

Sector

Dec Dec Dec

Mkt Cap (Btm)

Mkt Price Cap (Bt) (US$m) 16-Dec

40,453 178,223 22,547 51,403

1,344 5,919 749 1,707

292,625

9,719

141,528 284,418 296,764 194,623 356,977 49,659 28,933

4,700 23.30 9,446 149.00 9,856 124.00 6,464 17.40 11,856 105.00 1,649 37.25 961 39.75

1,352,903

44,932

8,733 5,818

290 193

14,551

483

249,221 221,058

12.40 23.70 30.00 53.75

15.30 27.25

8,277 57.50 7,342 146.00

470,279

15,619

13,478 414,000

448 1.65 13,750 345.00

427,478

14,197

16,112 14,880 16,443 63,730 12,661 19,459 19,216 67,675 13,503 42,150 18,481 10,366 8,273 18,024 9,120 16,726

535 494 546 2,117 421 646 638 2,248 448 1,400 614 344 275 599 303 555

366,818

12,183

217,942 910,661 558,990 152,492

7,238 802.00 30,244 320.00 18,565 168.50 5,064 74.75

1,840,085

61,112

68,719 180,849 36,783

2,282 6,006 1,222

286,351

9,510

15.10 6.35 9.95 29.25 11.60 4.64 1.98 6.75 9.15 19.10 2.18 10.70 5.55 10.50 9.60 14.10

85.75 40.25 8.45

Target Price (Bt)

% Upside

Rcmd

16.20 24.90 38.25 64.00

31% 5% 28% 19%

B H B B

24.40 187.00 150.00 21.00 121.50 42.00 44.00

18.50 38.00

68.00 210.00

2.48 366.00

20.00 7.80 11.30 28.75 12.79 5.30 2.36 6.50 12.62 25.00 3.04 10.84 6.97 14.30 9.94 16.56

853.00 372.00 169.00 80.00

79.00 48.50 11.80

5% 26% 21% 21% 16% 13% 11%

21% 39%

18% 44%

50% 6%

32% 23% 14% -2% 10% 14% 19% -4% 38% 31% 39% 1% 26% 36% 4% 17%

6% 16% 0% 7%

-8% 20% 40%

H B B B B H H

B B

B B

B B

B B B H B H B FV B B B FV B B B B

B B H B

B B B

Share Price Avg Performance (%) 6-mth 3M 6M 12M Vol (m)

4 (4) 27 (7)

10 2 15 16 14 (1) 7

2 6

130 24

(12) 10

(1) (18) 8 (2) 6 21 5 (6) (9) (21) (17) (7) (3) (15) 1 10

24 12 18 48

34 3 (7)

22 20 71 15

19 24 34 36 27 43 47

35 51

176 36

(1) 35

96 26 54 55 10 59 40 27 17 12 8 14 10 23 7 106

26 27 14 69

63 40 52

12 108 69 92

8 31 47 77 24 67 na

24 60

na 109

(15) 53

100 12 72 41 27 60 157 6 28 16 (16) 0 29 79 20 139

35 40 22 78

104 71 128

9.1 50.8 6.4 3.5

22.2 5.5 6.9 61.8 10.7 15.2 4.5

3.6 1.8

27.4 8.9

21.0 2.6

17.6 30.3 34.7 3.2 1.3 121.6 55.0 30.5 15.6 6.6 120.4 2.3 7.8 15.9 0.7 31.9

1.9 7.1 7.4 12.4

0.4 9.7 12.8

09E

Net Profit (Btm) 10F

11F

1,400 10,190 1,623 3,344

1,425 13,157 1,629 3,950

2,316 13,798 2,064 4,582

16,558

20,161

22,760

6,659 20,764 14,892 12,189 20,760 5,109 1,988

8,515 24,420 19,005 15,202 23,655 5,545 2,920

9,760 25,820 23,645 20,220 27,030 5,860 3,135

82,361

99,263

115,472

715 426

788 1,094

811 530

1,141

1,881

1,342

4,824 6,802

8,725 11,706

14,308 17,464

11,626

20,431

31,771

81 24,346

(54) 38,492

1,141 34,731

24,426

38,437

35,872

318 1,866 90 4,952 1,452 (1,774) 575 3,908 1,359 3,622 1,716 757 1,610 2,476 656 305

855 2,058 (294) 1,831 1,647 47 1,180 3,985 1,678 3,644 2,085 720 1,486 2,692 391 411

1,368 2,271 783 2,082 1,787 321 1,170 4,148 1,863 4,597 2,138 865 1,853 2,916 544 786

23,888

24,415

29,490

14,229 59,548 22,154 12,062

25,256 80,054 36,868 11,083

16,661 81,352 41,217 10,439

107,992

153,260

149,669

2,868 4,992 1,143

3,223 6,318 1,577

3,725 8,381 1,978

9,003

11,118

14,085

EPS (Bt) 10F

11F

CAGR 08-10 (%)

0.4 2.0 2.0 4.5

0.7 2.1 2.5 4.6

29 17 4 10

1.4 12.8 7.9 1.4 7.0 4.2 4.0

1.4 5.1

2.0 7.8

(0.0) 32.1

0.8 0.9 (0.2) 0.8 1.0 0.0 0.1 0.4 1.1 1.7 0.2 0.6 0.9 1.6 0.9 0.3

92.9 28.2 11.1 5.4

4.0 1.4 0.4

1.6 13.5 9.9 1.8 8.0 4.4 4.3

1.4 2.5

3.0 11.6

0.1 28.9

1.3 1.0 0.5 1.0 1.0 0.1 0.1 0.4 1.3 2.1 0.3 0.7 1.2 1.7 1.0 0.7

61.3 28.7 12.4 5.1

4.6 1.9 0.5

21 12 26 29 14 7 25

6 12

44 60

275 19

107 10 176 (35) 4 nm 43 3 17 13 12 (7) 3 9 5 61

8 17 36 (7)

14 30 21

PE (x) 10F

11F

28.2 12.0 14.9 12.0

17.4 11.4 11.8 11.7

14.5

12.9

16.6 11.6 15.6 12.8 15.1 9.0 9.9

14.5 11.0 12.6 9.6 13.2 8.5 9.2

13.6

11.7

11.1 5.3

10.8 11.0

7.7

10.8

28.6 18.7

19.4 12.5

23.0

14.8

nm 10.8

11.8 11.9

11.1 18.8 7.2 nm 34.8 12.2 412.1 16.3 17.0 8.0 11.6 8.9 18.4 6.0 6.7 10.2 40.7

EV/EBITDA (x) 10F 11F

P/ P/ BV x Sales x 10F 10F

Div. Yield Net Debt /Equity (%) 10F 11F 09A

ROA

ROE

09A

09A

Analyst

12.7 9.6 9.4 8.6

10.6 8.9 7.8 8.1

3.1 2.7 4.5 2.2

2.2 1.0 0.9 0.7

1.1 4.0 4.7 4.2

1.7 4.4 5.9 2.2

94.7 0.6 37.4 53.4

5.3 9.1 19.3 8.8

12.3 21.0 42.3 21.8

V Nalyne V Nalyne V Nalyne V Nalyne

na na na na na na na

na na na na na na na

1.4 1.2 2.2 1.5 2.3 1.4 2.0

na na na na na na na

1.9 3.3 2.4 2.9 2.9 3.4 3.8

2.4 3.4 3.2 3.8 3.3 3.6 4.4

na na na na na na na

0.9 1.2 1.1 0.8 1.6 1.2 1.5

7.5 11.2 12.6 11.3 15.5 17.1 16.7

K Sugittra K Sugittra K Sugittra K Sugittra K Sugittra K Sugittra K Sugittra

na na

na na

1.9 1.7

na na

7.7 11.7

7.9 8.4

na na

11.5 8.5

16.4 13.7

K Sugittra K Sugittra

23.3 11.6

13.2 8.2

8.5 2.1

2.7 2.2

0.8 2.3

1.6 3.9

172.0 33.8

6.7 4.4

32.2 7.0

C Naphat C Naphat

17.7 8.9

5.7 6.9

0.9 3.3

0.6 1.5

3.0

2.1 4.3

12.8 92.3

0.3 8.1

0.5 25.4

V Nalyne C Naphat

11.9

2.0

15.6

23.0

14.8

11.8 11.8 6.6 7.8 21.0 165.4 30.6 16.3 11.7 7.4 60.5 14.2 16.4 15.4 16.3 15.2 7.2 5.6 9.2 10.5 8.6 9.4 15.2 11.6 4.8 6.6 6.2 5.1 9.7 10.3 21.3 33.1

7.4 6.5 15.3 15.0 7.1 8.8 14.7 14.8 4.7 9.1 9.4 12.6 6.4 4.8 9.8 19.6

2.8 1.6 2.7 3.3 1.1 1.8 2.1 2.5 2.3 2.7 1.4 1.9 0.8 2.0 0.9 3.6

4.0 1.1 2.6 6.3 5.8 0.6 4.9 3.8 1.3 1.8 1.3 1.3 0.5 1.6 9.8 2.1

2.1 5.5 1.1 8.5 3.1 4.7 6.7 2.6 6.7 3.9 6.7 6.7 9.8 1.2

3.4 6.1 2.2 1.3 8.8 3.0 4.9 7.5 3.3 6.8 4.7 8.4 7.3 10.3 2.3

83.0 77.6 219.9 74.4 2.0 187.4 37.2 53.5 cash cash 94.0 186.7 61.4 37.2 cash cash

2.5 10.2 0.3 10.5 9.6 (3.2) 4.2 8.4 16.0 20.6 6.0 3.6 6.6 17.3 5.9 2.9

6.4 25.2 1.7 29.9 10.4 (15.8) 7.3 15.0 27.9 31.3 14.3 10.5 16.9 39.4 6.0 6.8

S Chanpen S Chanpen S Chanpen S Chanpen S Chanpen S Chanpen A Sombut S Chanpen S Chanpen S Chanpen S Chanpen A Sombut A Sombut S Chanpen S Chanpen A Sombut

9.0 6.4 5.6 9.4

5.6 5.5 5.3 8.0

3.1 1.9 3.3 2.0

3.5 0.4 4.0 0.6

2.2 3.1 2.9 2.2

2.7 3.1 3.0 3.4

16.0 46.2 8.8 47.7

14.9 6.0 8.2 8.9

32.0 14.7 16.0 19.2

C Naphat C Naphat C Naphat C Naphat

9.0 14.8 12.4

7.8 11.2 10.0

3.3 8.8 5.3

1.0 1.3 1.5

2.3 3.5 2.1

2.7 3.3 2.7

cash cash 13.0

7.7 11.8 8.4

15.8 28.1 22.3

V Nalyne V Nalyne V Nalyne

15.0

12.4

8.6 11.3 15.1 13.8

13.1 11.1 13.5 14.6

12.0

12.3

21.3 28.6 23.3

18.4 21.6 18.6

25.8

20.3

Disclosure Legend

Note 1 Note 1

Note 1

Note 1

THAILAND : EARNINGS GUIDE FYE Company Entertainment Asiasoft Corporation BEC World Major Cineplex MCOT Workpoint Entertainment PCL

Dec Dec Dec Dec Dec

Sector Transport Bangkok Expressway Thoresen Thai Agencies Thai Airways

Dec Sep Dec

Sector TECHNOLOGY Communications Advanced Info Service CS Loxinfo True Corporation Total Access Communications

Dec Dec Dec Dec

Sector Electronics Cal-Comp Electronics Delta Electronics Thai Hana Microelectronics

Dec Dec Dec

Sector OTHER Others Bumrungrad Hospital

Sector

Dec

Mkt Cap (Btm)

Mkt Price Cap (Bt) (US$m) 16-Dec

3,206 63,000 11,465 18,895 2,380

106 2,092 381 628 79

98,946

3,286

14,784 15,222 109,139

491 506 3,625

139,145

4,621

256,169 3,023 57,207 100,632

8,508 100 1,900 3,342

423,661

14,070

13,945 43,035 22,423

463 1,429 745

79,403

2,637

23,853

792

23,853

792

10.20 31.50 13.00 27.50 11.90

19.20 21.50 50.00

86.25 5.10 6.75 42.50

3.42 34.50 27.00

32.75

Prices quoted in US$ converted to Bt at 30.11 to calculate ratios. SB = Strong Buy, B = Buy, H = Hold, FV = Fully Valued, S = Sell, NR = No Rating * Under Revision

Target Price (Bt)

% Upside

Rcmd

13.75 43.00 19.50 39.50 11.00

35% 37% 50% 44% -8%

B B B B H

23.37 38.40 64.50

122.00 5.75 9.60 50.40

3.54 40.00 25.60

37.25

22% 79% 29%

41% 13% 42% 19%

4% 16% -5%

14%

B B B

B B B B

B B H

B

Share Price Avg Performance (%) 6-mth 3M 6M 12M Vol (m) (2) (19) 0 (7) 6

4 (9) 28

2 9 32 9

(8) 23 3

(11)

36 28 42 16 69

8 (8) 89

10 52 115 17

2 60 4

7

57 31 52 15 70

(8) (19) 154

16 68 119 19

10 91 33

9

0.4 3.1 5.5 1.2 0.5

2.3 9.8 8.4

7.7 2.8 248.3 10.1

7.4 2.8 2.2

1.0

09E

Net Profit (Btm) 10F

11F

178 2,635 334 1,389 73

255 3,248 752 1,450 144

274 3,676 795 2,000 151

4,609

5,848

6,897

1,702 1,814 7,344

1,851 1,063 14,813

1,311 1,704 12,384

10,860

17,726

15,399

17,055 287 1,228 6,628

19,883 317 3,136 10,607

21,269 322 1,614 9,815

24,727

34,084

33,496

1,301 2,189 2,043

1,607 4,376 2,641

1,760 4,508 2,424

5,534

8,624

8,691

1,246

1,211

1,425

1,246

1,211

1,425

EPS (Bt) 10F

11F

CAGR 08-10 (%)

0.8 1.6 0.9 2.1 0.7

0.9 1.8 0.9 2.9 0.8

22 18 54 20 44

2.4 1.5 6.8

6.7 0.5 0.4 4.5

0.4 3.5 3.1

1.7

1.7 2.4 5.7

7.2 0.5 0.2 4.1

0.4 3.6 3.0

2.0

(12) (3) 15

12 10 15 22

13 43 15

7

PE (x) 10F

11F

12.7 19.4 15.2 13.0 16.5

11.8 17.1 14.4 9.4 15.7

16.9

14.3

8.0 14.3 7.4

11.3 8.9 8.8

7.8

9.0

12.9 9.4 16.7 9.5

12.0 9.3 32.5 10.3

12.4

12.6

8.7 9.8 8.7

8.1 9.6 9.0

9.2

9.1

19.7

16.7

19.7

16.7

EV/EBITDA (x) 10F 11F

P/ P/ BV x Sales x 10F 10F

Div. Yield Net Debt (%) /Equity 10F 11F 09A

5.2 9.1 6.5 5.8 6.8

4.9 7.8 5.7 4.8 6.2

2.6 8.4 2.1 2.5 2.2

2.2 5.4 1.8 3.6 1.9

7.5 5.2 5.9 6.5 4.2

8.1 5.8 6.2 9.0 4.5

cash cash 59.5 cash cash

10.5 30.2 3.2 14.8 6.4

5.5 3.8 5.5

5.9 2.4 4.7

0.8 0.6 1.3

1.9 0.7 0.6

6.3 1.7 3.4

4.4 2.7 3.0

115.9 cash 262.6

4.0 4.3 2.8

5.5 4.4 5.3 4.1

5.1 4.2 5.1 3.9

6.4 2.5 4.0 1.4

2.4 1.2 0.9 1.4

14.4 9.0 7.4

8.3 9.1 6.8

16.6 2.3 1,131.7 90.3

13.5 13.7 1.1 6.5

23.6 29.1 15.9 10.9

V Chirasit V Chirasit V Chirasit V Chirasit

5.8 6.5 4.6

4.8 5.7 4.1

0.8 2.1 1.6

0.1 1.3 1.3

3.7 5.1 5.7

3.9 5.2 5.6

0.3 cash Cash

2.5 8.1 13.6

8.4 12.7 16.1

S Chanpen S Chanpen S Chanpen

10.4

8.9

3.9

2.4

2.7

3.1

22.5

14.9

24.1

V Nalyne

ROA

ROE

09A

09A 14.3 36.9 6.2 19.0 7.4

Disclosure Legend

V Chirasit V Chirasit V Chirasit V Chirasit V Chirasit

10.1 S Chanpen 7.1Wee Lee Chong 14.9 V Nalyne

16 December 10 Note 1: As at ,DBSVS and its affiliates hold a proprietary position in these companies. Note 2: DBSVR,DBSVS,DBS Bank Ltd and/or other affiliates of DBSVUSA,within the past 12 months,have received compensation and/or within the next 3 months seek to obtain compensation for investment banking services from these companies. Note 3: DBSVR,DBSVS,DBS Bank Ltd and/or other affiliates of DBSVUSA beneficially own a total of 1%or more of any class of common equity securities of these companies. Note 4: DBSVR,DBSVS,DBS Bank Ltd and/or other affiliates of DBSVUSA,within the past 12 months,have received compensation and/or within the next 3 months seek to obtain compensation for investment banking services from related of these companies.

Analyst

Note 1

INDONESIA : EARNINGS GUIDE Company

FYE

Mkt Cap Rpbn

Mkt Cap USDm

Conglomerate/Automotive Astra International Dec

202,215

22,379

Sector

202,215

22,379

Property Intiland Development

Dec

Sector Consumer Kalbe Farma Indofood Sukses Bank Bank Central Asia Bank Mandiri Bank Danamon Bank Tabungan Negara Bank Rakyat Indo Bank Negara Indonesia

Dec Dec

Dec Dec Dec Dec Dec Dec

Sector Plantation Astra Agro Lestari Sampoerna Agro London Sumatra

Dec Dec Dec

Sector Basic Materials Aneka Tambang INCO Timah

Dec Dec Dec

Sector Oil, Gas and Energy Bukit Asam United Tractors Adaro Energy Indo Tambangraya Perusahaan Gas

Dec Dec Dec Dec Dec

Sector Telecommunications Indosat Sarana Menara Nusantara XL Axiata Telekomunikasi Indonesia

Sector

Dec Dec Dec Dec

4,095

453

4,095

453

31,484 39,731

3,484 4,397

71,215

7,881

157,792 135,406 48,401 14,285 127,723 68,068

17,288 14,827 5,302 1,565 14,115 6,169

551,674

59,267

37,873 5,528 15,829

4,191 612 1,752

59,230

6,555

22,415 44,962 13,086

2,481 4,976 1,448

80,463

8,905

47,119 76,851 80,765 56,270 103,026

5,215 8,505 8,938 6,227 11,402

364,032

40,287

28,528 13,570 45,092 156,240

3,157 1,502 4,990 17,291

243,430

26,940

Price (Rp) 16-Dec

49,950

395

3,100 4,525

6,400 6,450 5,750 1,640 10,350 3,650

24,050 2,925 11,600

2,350 4,525 2,600

20,450 23,100 2,525 49,800 4,250

5,250 13,300 5,300 7,750

Target Price (Rp)

% Upside

Rcmd

65,000

30%

B

725

3,275 5,925

7,100 7,200 6,000 2,500 13,900 4,500

27,400 4,400 13,600

1,655 3,979 2,300

23,600 25,000 2,800 58,000 4,800

7,000 15,000 6,800 8,900

84%

6% 31%

11% 12% 4% 52% 34% 23%

14% 50% 17%

-30% -12% -12%

15% 8% 11% 16% 13%

33% 13% 28% 15%

B

H B

H H FV B B B

B B B

FV H FV

B H B B B

B B B H

Share Price Performance (%) 3M 6M 12M

-9

-25

23 (11)

(2) (7) 2 (13) (0) 1

16 8 18

1 (3) (9)

11 12 17 29 4

(3) 118 (5) (16)

7

-32

51 16

14 12 6 15 16 60

16 23 35

15 14 17

23 24 28 30 8

4 472 29 (3)

45

78

137 27

33 42 28 106 35 93

0 10 36

7 25 38

17 47 44 57 8

9 0 179 (21)

Avg 6-mth Vol (m)

PAT/MI (Rpbn) 09A 10F 11F

3.6 10,210 13,484 15,784

20.4

24.6 23.3

8.9 17.1 5.4 22.0 12.3 26.1

1.7 3.8 3.6

27.6 14.7 26.6

3.0 3.3 67.1 1.3 31.2

3.3 0.1 1.5 23.3

26

929 2,076

6,807 7,155 1,533 490 7,308 2,483

1,661 282 707

423 910 314

2,728 3,818 4,367 3,031 6,229

506

1,176 2,889

511

1,411 3,360

8,380 9,448 8,930 10,900 3,044 3,835 792 1,145 9,043 11,368 3,961 4,850

1,602 389 1,135

1,205 2,861 712

2,216 4,128 2,408 2,494 6,704

2,085 469 1,329

1,452 2,975 971

3,650 5,025 5,557 4,310 7,990

1,503 1,292 1,559 589 182 330 1,709 2,785 3,464 11,332 12,069 12,726

EPS (IDR) 10F 11F

3331

49

125 329

340 430 363 91 734 259

1,017 206 831

126 288 142

962 1,241 75 2,207 282

238 178 327 605

3899

49

151 383

383 525 458 131 922 318

1,324 248 974

152 299 193

1,584 1,510 174 3,814 336

287 323 407 638

CAGR 09-11 (%)

24

145

25 27

18 23 58 52 25 40

12 29 37

85 81 76

16 15 13 19 13

2 -25 31 6

PE (x) 10F 11F

15.0

12.8

42.6

36.4

P/ BV x 10F

P/ Sales x 10F

8.1

4.2

2.1

23.0

11.8

EV/EBITDA (x) 10F 11F

9.4

8.1

8.0

7.9

5.1

1.1

8.1

8.0

7.9

5.1

1.1

24.7 13.8

20.6 11.8

13.8 7.7

11.8 6.8

5.7 3.2

18.6

15.7

9.0

4.3

18.8 15.0 15.8 18.0 14.1 14.1

16.7 12.3 12.6 12.5 11.2 11.5

-

4.9 3.3 2.7 2.3 3.7 2.6

15.9

13.2

23.6 14.2 14.0

18.2 11.8 11.9

20.2

15.9

18.6 15.7 18.4

15.4 15.1 13.5

17.0

14.9

21.3 18.6 33.5 22.6 15.1

12.9 15.3 14.5 13.1 12.6

21.9

13.7

22.1 74.6 16.2 12.8

18.3 41.2 13.0 12.2

18.0

14.7

-

Div Yld (%) 10F 11F

Net Gear

2.3 3.1341

26.9

12.0

28.0

JK

49.0

1.2

2.2

AD

Note 1

Note 1 Note 1

2.3 10.6

ROA RONW (%) 09 09 09

Analyst

Disclosure Legend

3.1

3.7

3.7

3.7

3.7

3.5 1.1

1.4 1.6

1.7 2.2

cash 80.5

15.2 5.2

23.4 22.2

AD BS

-

2.2 1.9 3.2 1.0 2.1 1.3

2.7 2.3 4.0 1.7 2.7 2.1

-

2.6 1.9 1.6 0.9 2.6 -

26.6 21.8 11.6 11.5 29.5 14.4

SL SL SL SL SL SL

5.6 2.7 3.4 4.7

5.1 3.0 4.9

2.8 1.8 1.8

2.7 2.5 2.2

cash cash cash

23.6 12.8 14.5

29.2 17.0 20.2

BS BS BS

Note 1

2.3 7.9 1.7

2.2 0.6 2.7

2.6 1.9 3.7

cash cash cash

3.8 5.7 5.9

5.3 6.7 8.7

AK AK AK

Note 1 Note 1 Note 1

10.0

2.5 2.8 3.2 2.8

8.5 8.3 6.7 8.0 7.7

7.0 4.8 4.5 7.4 6.8

5.3 2.6 3.0 4.1 5.7

2.6 2.7 2.2 3.2 3.3

2.1 3.0 1.5 2.7 4.0

cash 7.2 26.2 cash 34.2

38.5 16.2 11.5 31.0 23.0

56.2 30.6 27.8 48.5 66.2

AK AK AK AK JN

Note 1 Note 1 Note 1

7.7

6.0

4.6 13.0 5.3 4.4

1.5 10.5 4.0 3.8

1.6 12.5 3.2 2.3

2.3 0.0 1.3 4.3

2.7 0.0 1.6 4.5

123.8 420.3 144.4 28.0

2.8 9.3 6.1 12.0

8.5 72.3 26.1 30.9

SM SM SM SM

Note 1 Note 1

5.1

3.9

Note 1 Note 1 Note 1 Note 1

3.7 13.8 8.4 9.6

11.1 7.0 8.5

10.0 8.9 8.6 9.4

15.0 10.4 12.7 14.0 9.1

5.2 15.7 6.3 4.9

7.0 7.8 7.0

Legend: Note 1 As at DBSVI and its affiliates hold a proprietary position in these companies. 16-Dec-10 Note 2 DBSVR, DBSVI, DBS Bank and/or other affiliates of DBSVUSA, within the past 12 months, have received compensation and/or within the next 3 months seek to obtain compensation for investment banking services Note 3 DBSVR, DBSVI, DBS Bank and/or other affiliates of DBSVUSA beneficially own a total of 1% or more of any class of common equity securities of these companies Note 4 DBSVI has been appointed as the designated market maker of structure warrant(s) for these companies issued by DBS Bank Note 5 DBSVR, DBSVI, DBS Bank and/or other affiliates of DBSVUSA beneficially own a total of 5% or more of any class of common equity securities of these companies

Note 1

Note 1

Note 1

KOREA : EARNINGS GUIDE FYE Company

Mkt Cap (KRWbn)

Mkt Cap (US$m)

Price (KRW) 09-Dec

Target Price % (KRW) Upside

Rcmd

Share Price Performance (%) 3M 6M 12M

Avg 6-mth Vol (m)

Net Profit (Before EI) (bn) 09 10F 11F

EPS (KRW) 10F 11F

CAGR 09-11 (%)

PE (x) 10F

11F

EV/EBITDA (x) 10F 11F

Price/ BV (x) 09

Price/ Sales (x) 09E

Div Yld (%) 10F 11F

Net Debt /Equity 09

ROA 09

ROE 09

Analyst Lee Eun Young

Basic Materials Dongkuk Steel Mill Co

Dec

1,932

1,671

31,250

29,000

-7%

Buy

21

43

14

401

50

203

291

3,276.4

4,706.8

141

9.5x

6.6x

5.5x

4.7x

0.7x

0.4x

1.9%

1.9%

0.22

1%

2%

Hyundai Steel Co.

Dec

9,896

8,561

116,000

120,000

3%

Buy

3

30

41

743

1,152

858

957

10,103.5

11,269.8

(9)

11.5x

10.3x

10.4x

8.0x

1.5x

1.0x

0.4%

0.4%

0.66

8%

20%

Lee Eun Young

Poongsan Corporation

Dec

1,394

1,206

49,750

60,000

21%

Buy

24

68

130

364

147

166

181

5,938.9

6,454.5

11

8.4x

7.7x

7.7x

6.7x

1.4x

0.6x

1.6%

1.6%

0.63

9%

19%

Lee Eun Young

POSCO

Dec

40,978

35,446

470,000

600,000

28%

Buy

(8)

(0)

(21)

266

3,172

4,523

4,895

51,872.6

56,142.7

24

9.1x

8.4x

6.4x

6.2x

1.2x

1.3x

1.7%

2.1%

cash

8%

11%

Lee Eun Young

SeAh Besteel Co

Dec

1,225

1,059

34,150

45,000

32%

Strong Buy

33

76

118

94

(39)

133

163

3,715.7

6,454.5

nm

9.2x

7.5x

6.2x

5.0x

1.3x

0.6x

2.9%

2.9%

0.85

(2%)

(5%)

Lee Eun Young

55,425

47,944

4,483

5,883

6,486

Jay Kim

Sector

9.4x

8.5x

Consumer Goods Hankook Tire %

Dec

4,847

4,207

31,850

37,000

16%

Buy

6

18

29

18,295

351

426

487

2,801.1

3,201.0

18

11.4x

9.9x

8.5x

7.3x

2.1x

1.4x

1.1%

1.1%

0.10

12.4%

19%

Kia Motors %

Dec

20,101

17,445

50,700

64,000

26%

Buy

50

59

159

158,571

1,450

5,149

6,260

5,148.7

6,259.5

32

9.8x

8.1x

8.5x

7.4x

2.2x

0.9x

0.5%

0.5%

0.36

9.0%

22%

Jay Kim

Hyundai Mobis

Dec

29,154

25,302

299,500

330,000

10%

Buy

24

48

83

76,559

1,615

2,376

2,784

24,408.1

28,597.1

31

12.3x

10.5x

15.8x

12.6x

3.1x

2.1x

0.5%

0.5%

Cash

17.1%

24%

Jay Kim

Hyundai Motor %

Dec

39,209

34,028

178,000

240,000

35%

Buy

17

22

60

155,420

2,962

5,329

6,227

18,384.7

21,510.7

46

9.7x

8.3x

9.2x

6.8x

1.8x

1.1x

0.5%

0.5%

Cash

8.8%

14%

Jay Kim

Pyeong Hwa Automotive

Dec

323

281

15,400

19,000

23%

Buy

4

35

101

3,387

31

41

47

1,970.4

2,252.9

23

7.8x

6.8x

9.7x

9.7x (1.8x)

0.9x

0.9%

1.1%

Cash

12.4%

21%

Jay Kim

97,328

85,342

6,409

13,321

15,806

11.0x

9.4x

Sector

2011 Asia Equity Outlook The Year of the Rabbit Research Team Directory Analyst

Sector

E-mail

Regional Timothy Wong Joanne Goh Paul Yong, CFA Ben Santoso Sachin Mittal Lim Sue Lin June Ng

Head, Group Research Regional Equity Strategist Singapore & China Industrial & Transport Regional Plantation Telecom Singapore, Indonesia and Malaysia Banking China and Malaysia Power

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Hong Kong / China Derek Cheung Alice Hui, CFA Addison Dai Carol Wu Dennis Lam Alexander Lee, CFA Jeff Yau, CFA Ken He Mavis Hui Patricia Yeung Paul Yong, CFA Rachel Miu Steven Zhang Tam Tsz-Wang, CFA Terry Hsu Titus Wu

Head of Research, Strategy Deputy HOR, Consumer Metal China Property Insurance Banking & Finance Hong Kong Property Port & Shipping Consumer Environmental Airline, Port & Toll Road Automobile, Infrastructure, Machinery Technology Telecom & Internet Airline & Toll Road Consumer

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Indonesia Maynard Arif Ariyanto Kurniawan Research Team

Head of Research, Strategy Basic Materials, Oil, Gas & Energy Plantation, Consumer

[email protected] [email protected] [email protected]

Malaysia Wong Ming Tek Goh Yin Foo, CFA June Ng Lim Sue Lin Yee Mei Hui Juliana Ramli Chong Tjen-San, CFA Kok Chiew Sia Lee Wee Keat Hon Seow Mee Research Team

Head of Research, Strategy Retail/ Technical Product Power, Conglomerates Banking Gaming, Property Aviation, Transport, Plantation, Telecommunications Construction, Infrastructure, Conglomerates Consumer , Retail, Technology, Motor Oil & Gas, IPO, REITs Steel, Rubber Gloves, Financials Small-Mid Caps

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Singapore Janice Chua Ho Pei Hwa Lock Mun Yee Derek Tan Jeremy Thia Andy Sim, CFA Tan Ai Teng Suvro Sarkar

Head of Research, Strategy, Industrials Industrials Property, Reits Reits Industrials, Property Consumer Electronics Electronics, Industrials

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Naphat Chantaraserekul Research Team

Head of Research Strategy, Property, REITs, Transportation Strategy, Telecom, Media Banks, Securities Construction Materials, Food and Beverage, Healthcare, Hotel, Commerce, Building Materials, Energy, Utilities, Petrochemicals, Chemicals, Automotive, Electronics

Korea Lee Eun Young Jay (Jaehak) Kim

Basic Materials, Utilities Automotive

Thailand Chanpen Sirithanarattanakul Chirasit Vuttigrai Sugittra Kongkhajornkidsuk Nalyne Viriyasathien

[email protected] [email protected] [email protected] [email protected]

[email protected] [email protected]

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“Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6878 5233 in respect of any matters arising from or in connection with this report.”

2011 Asia Equity Outlook The Year of the Rabbit

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3.

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2011 Asia Equity Outlook The Year of the Rabbit 4.

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(2)

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2011 Asia Equity Outlook The Year of the Rabbit

Disclaimer: The information herein is published by DBS Bank Ltd (the “Company”). It is based on information obtained from sources believed to be reliable, but the Company does not make any representation or warranty, express or implied, as to its accuracy, completeness, timeliness or correctness for any particular purpose. Opinions expressed are subject to change without notice. Any recommendation contained herein does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. The information herein is published for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate legal or financial advice. The Company, or any of its related companies or any individuals connected with the group accepts no liability for any direct, special, indirect, consequential, incidental damages or any other loss or damages of any kind arising from any use of the information herein (including any error, omission or misstatement herein, negligent or otherwise) or further communication thereof, even if the Company or any other person has been advised of the possibility thereof. The information herein is not to be construed as an offer or a solicitation of an offer to buy or sell any securities, futures, options or other financial instruments or to provide any investment advice or services. The Company and its associates, their directors, officers and/or employees may have positions or other interests in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking or financial services for these companies. The information herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.

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2011 Asia Equity Outlook The Year of the Rabbit Asian Equities Sales, Sales Trading and Research Contacts

Sales Heads

Tel:

Email:

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65-6398 6900 65-6398 7319 852-2820 4992 44-20-7618 1881 1-212-826 3553 662-657 7000 62 21 390 3389

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

Sales Trading Contacts

Tel:

Email:

Loh Chong Jin Franco Law Charles Davies Brenda Wong

65-6398 6927 852-2971 1828 44 20 7618 1883 1 212 826 3558

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Research Contacts

Tel:

Email:

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65-6398 7952 65-6398 7954 852-2971 1703 603-2711 0956 662-657 7824 6221-3983 5428

[email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

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