REGIONAL DAILY

December 26, 2012

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

MALAYSIA

Malaysia Daybreak | 11 November 2014

▌What’s on the Table…

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Plantations - Seasonally-lower supply & weak Ringgit boosted CPO prices

Malaysian palm oil inventories rose 4% mom to a 19-month high of 2.17m tonnes in Oct, 1% above our and consensus projections. We view this as a neutral event as the stock level remains manageable. We expect short-term CPO prices to remain range-bound. The key positive price drivers are seasonally-lower palm oil output in the coming months, the increase in Malaysia's biodiesel mandate from 5% to 7% in Nov and upcoming festival restocking activities. However, this is offset by bumper soybean supplies in the US and weak crude oil prices that lower CPO biodiesel breakeven support. Our Neutral stance and top picks, First Resources, AALI and SIMP, are intact.

▌News of the Day…

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• SMRT and Creador to jointly acquire Masterskill Education Group

• Palm oil stockpiles in Malaysia climb to the highest level since Feb 2013

• MAHB proposes 1-for-5 rights issue to raise RM1.32bn

• Merger of RHB Islamic Bank, MBSB and CIMB Islamic to complete by 1Q15

• China’s PPI dropped 2.2% yoy in Oct

• China will make outbound investments of US$1.25tr over the next 10 years

Sources: CIMB. COMPANY REPORTS

Sources: CIMB. COMPANY REPORTS

Key Metrics

FBMKLCI Index

1,750

1,800

1,850

1,900

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

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FBMKLCI

1827.93 3.74pts 0.21%Nov Futures Dec Futures

1833.5 - (0.47% ) 1834 - (1.00% )———————————————————————————

Gainers Losers Unchanged349 481 299

———————————————————————————

Turnover2662.82m shares / RM1979.323m

3m avg volume traded 2604.16m shares

3m avg value traded RM2159.68m———————————————————————————

Regional IndicesFBMKLCI FSSTI JCI SET HSI

1,828 3,301 4,965 1,567 23,745 ————————————————————————————————

Close % chg YTD % chg

FBMKLCI 1,827.93 0.2 (2.1)

FBM100 12,327.74 0.1 (2.1)

FBMSC 17,313.65 (0.7) 10.3

FBMMES 6,856.40 1.1 20.8

Dow Jones 17,613.74 0.2 6.3

NASDAQ 4,651.62 0.4 11.4

FSSTI 3,301.00 0.4 4.2

FTSE-100 6,611.25 0.7 (2.0)

SENSEX 27,874.73 0.0 31.7

Hang Seng 23,744.70 0.8 1.9

JCI 4,965.39 (0.4) 16.2

KOSPI 1,958.23 0.9 (2.6)

Nikkei 225 16,780.53 (0.6) 3.0

PCOMP 7,192.12 (0.2) 22.1

SET 1,567.34 (0.7) 20.7

Shanghai 2,473.67 2.3 16.9

Taiwan 9,049.98 1.5 5.1————————————————————————————————

Close % chg Vol. (m)

NOVA MSC 0.185 42.3 143.4

GENETEC TECH 0.185 23.3 102.5

SYSTECH 0.250 11.1 84.8

PRIVASIA TECH 0.175 16.7 79.8

DGB ASIA 0.160 6.7 79.5

IFCA MSC 0.850 4.3 74.7

DVM TECHNOLOGY 0.075 7.1 49.3

YGL CONVERGENCE 0.460 5.7 45.1————————————————————————————————

Close % chg

US$/Euro 1.2427 0.05

RM/US$ (Spot) 3.3305 (0.03)

RM/US$ (12-mth NDF) 3.4135 (0.07)

OPR (% ) 3.25 0.00

BLR (% , CIMB Bank) 6.85 0.00

GOLD ( US$/oz) 1,152.76 0.11

WTI crude oil US spot (US$/barrel) 77.40 (1.59)

CPO spot price (RM/tonne) 2,225.00 (1.11)

Market Indices

Top Actives

Economic Statistics

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

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Daybreak│Malaysia

November 11, 2014

2

Global Economic News

The US economy faces a risk that long-term interest rates may be higher than forecast because policy makers may be mistakenly linking the outlook with a reduction in the long-term trend for growth, according to a paper by the Federal Reserve Bank of San Francisco.

“Both monetary and fiscal policy projections have been based on the view that declines in the long-run potential growth rate of the economy will in turn push down interest rates,” the paper stated.

“In contrast, examination of private-sector professional forecasts and historical data provides little evidence of such a linkage,” they wrote. “This suggests a greater risk that future interest rates may be higher than expected.” (Bloomberg)

US Boston Federal Reserve bank President Eric Rosengren said the rise of the dollar against currencies like the yen and euro reflects the strength of the US economy and doesn't indicate a currency war is developing.

"Various economies are in very different positions," he said, noting that the US economy was likely to grow "closer to 3%" while Europe's economy was not doing nearly as well. (Reuters)

European Central Bank (ECB) Executive Board member Yves Mersch said policy makers will be ready to buy asset-backed securities (ABS) next week as part of a stimulus plan.

The ECB’s package of measures includes “a purchase program, which we started with covered bonds a few weeks ago and which we will continue in one week” with asset-backed securities, he said. They will help “to guarantee price stability in the euro area,” he added. (Bloomberg)

China’s producer-price index (PPI) dropped 2.2% yoy in Oct (-1.8% yoy in Sep). Consumer prices (CPI) rose 1.6% yoy in Oct, unchanged from the prior month. (Bloomberg)

China’s President Xi Jinping said outbound investment will total US$1.25tr over the next 10 years, 500 million Chinese tourists will go abroad, and the government will spend US$40bn to revive the ancient Silk Road trade route between Asia and Europe, as he outlined how much the world stands to gain from a rising China.

“China’s development will generate huge opportunities and benefits and hold lasting and infinite promise,” he said. (Bloomberg)

China and South Korea concluded talks for a free trade pact that will boost shipments between the countries.

China will immediately eliminate duties on US$8.7bn worth of annual trade when the agreement goes into force, and end duties on US$45.8bn of Korean exports over 10 years, Korea’s trade ministry said.

Korea will maintain import tariffs on 60% of agriculture and fisheries imports from China.

Bilateral trade with China will increase to US$300bn by 2015 from US$229bn in 2013, Korea’s trade ministry said. (Bloomberg)

Daybreak│Malaysia

November 11, 2014

3

Chinese President Xi Jinping and Japanese Prime Minister Shinzo Abe held their first face-to-face discussions since both took power two years ago, a potential thaw in the relationship that has been frozen and veered close to open conflict in the past two years.

Speaking to reporters shortly after the meeting, Abe said, "I believe Japan and China took the first step toward improving our relationship as we go back to the principle of mutually beneficial strategic relations." (WSJ)

Russia and China signed a framework agreement for a new gas deal, just months after the two sides sealed a long-awaited supply agreement worth up to US$400bn, part of President Vladimir Putin's strategy to bolster ties with Beijing. (Reuters)

Australia home loans slipped 0.7% mom in Sep to 51,465 (-0.9% mom in Aug). Investment lending was up 3.7% mom to US$11.9bn in Sep (+0.7% mom in Aug). (Sydney Morning Herald)

Malaysian Economic News

China and Malaysia have agreed to set up a clearing bank on Renminbi (RMB)-Ringgit business deals in Kuala Lumpur, a pact that will bolster the latter's position as a gateway for RMB flows in Southeast Asia. In essence, the clearing bank will mean reduced cost and ease of doing business between the two countries as payments can be made in RMB, and thus doing away with the current need to convert payments into the US dollar first.

Bank of China, China's fourth-biggest lender, is to be appointed the yuan clearing bank in Malaysia, two sources with knowledge of the matter said on Monday, following a deal signed between the two countries' central banks. (NST/Reuters)

China is keen to help build a Malaysia-Singapore high-speed rail link and also to get involved in Chilean and Australian railway and port projects, state media and the government cited Premier Li Keqiang as saying today. The interest, expressed at meetings with the leaders of Malaysia, Chile and Australia on the sidelines of a gathering of Asia-Pacific Economic Cooperation leaders, comes amid growing efforts by China to export its rail technology and take part in overseas projects.

Li told Malaysian Prime Minister Datuk Seri Najib Tun Razak was willing to “actively participate” in the Singapore-Malaysia high-speed rail, the official Xinhua news agency reported. It did not provide details. (Malay Mail)

Malaysia’s consumer confidence index has steadily rose since the start of the year to 99 points in the third quarter of this year. According to the latest Nielsen Global Survey of Consumer Confidence and Spending Intentions, Malaysian consumers’ confidence was previously at 92 points during the first quarter, Q1, which is the lowest point between 2010 and this year. The index however inched up one point to 93 on Q2 and steadily climbed up six points to its current point of 99. (The Star)

Daybreak│Malaysia

November 11, 2014

4

Government ministries’ performance in financial management for 2013 were the best in four years, said the Auditor-General’s report. The third series of the 2013 report, released today, found that 23 of the 24 ministries were rated as excellent in 2013 as compared to 22 ministries in 2012, 19 in 2011, and 17 in 2010. In 2009, the report said, just 10 ministries held the ‘excellent’ rating. However, the national audit found that the financial performance for federal departments had not been as encouraging.

In 2013, just 21 (46.7%) of 45 departments were rated as excellent in 2013, a drop in percentage compared to 21 (53.9%) out of 39 departments in 2012, and 21 (50%) out of 42 departments in 2011.

The report recommended for controlling officers and departments to rectify weaknesses highlighted by the audit, and conduct a comprehensive check to determine whether the weaknesses occurred in other areas.

“Secretary-generals and heads of department should chair every exit conference together with the officers from the National Audit Department so that they could know audit issues beforehand and urgently take positive actions apart from making improvements,” the report said.

It also called for regular updates on asset records to be carried out by the ministries and departments, in preparation for the federal government’s move towards accrual accounting next year. (NST)

The overall expenditure performance of the Research and Development (R&D) Programme under the Ministry of Science, Technology and Innovation (MOSTI) between 2011 and 2013 was less satisfactory, the Auditor-General's Report 2013 Series 3 revealed. It was based on the fact that the actual expenditure recorded for the programme was RM199.63m (56.1%) compared to the approved allocation of RM355.95m.

According to the report, which was tabled at the Dewan Rakyat Monday, the audit analysis found that the expenditure percentage for the year 2011 reached 99.7%, while for the year 2012, it reached 99%. For 2013, the expenditure percentage only reached up to 80.6%, after the Inno Fund recorded expenditure percentage of 14% or RM3.50m from the overall allocation of RM25m, hence resulting in the overall expenditure performance in 2013 to be slightly lower than 2011 and 2012. (Bernama)

Chinese Premier Li Keqiang said its government would support the construction of the China-Malaysia Qinzhou Industrial Park (QIP) and Malaysia-China Kuantan Industrial Park (MCKIP) and continue encouraging the Chinese enterprises to invest in Malaysia. When meeting Prime Minister Datuk Seri Najib Tun Razak here, Monday, Li also expressed China's willingness to actively participate in the railway construction in Malaysia. He said this at a bilateral meeting with the Malaysian delegation at the Great Hall of the People in conjunction with the 2014 Apec (Asia-Pacific Economic Cooperation) Economic Leaders' Meeting here. (Bernama)

Sarawak Chief Minister Tan Sri Adenan Satem on Monday tabled a RM6.36bn budget for 2015, where RM4.55bn or 71% has been proposed for development and RM1.81bn as operating expenditure. Adenan, who is also the State Finance Minister, said the expenditure is expected to generate a fairly high level of economic activities to sustain the state's economic growth and ultimately narrow the overall development gap between it and the Peninsular. "More than 50% of the development allocation in the proposed budget is for the implementation of programmes and projects in the rural areas," he added. (Bernama)

Daybreak│Malaysia

November 11, 2014

5

Significant progress in recent months is expected to bring the landmark Trans-Pacific Partnership (TPP) negotiations to conclusion. The leaders of 12 countries involved in the TPP talks said negotiations have narrowed the remaining gaps on the legal text of the agreement.

"We have instructed our ministers and negotiators to conclude the agreement as top priority and to reap the real and substantial benefits of the TPP agreement as soon as possible," they said in a statement released by Malaysia's Ministry of International Trade and Industry.

The TPP negotiating countries are Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, US and Vietnam. The statement was released after the countries representatives met on the sidelines of the Asia-Pacific Economic Cooperation summit in Beijing. (Bernama)

The Malaysian government plans to roll out a new sharia-compliant investment platform next year, aiming to broaden the traditional role of Islamic banks from credit provider to investment intermediary. The government is backing the Investment Account Platform (IAP) with an initial start-up fund of 150m ringgit ($45m), intending that the IAP will serve as a central marketplace to finance small and medium-sized businesses.

Under the scheme, announced as part of the 2015 budget, Islamic banks would vet businesses seeking funds, provide a secondary market for investors and in some cases underwrite the equity transactions. "This initiative will open new kinds of activities revolving around investment intermediation within the Islamic financial market," said Badlisyah Abdul Ghani, chief executive of CIMB Islamic, a unit of CIMB Group Holdings Bhd. (The Edge)

Perbadanan Nasional Bhd (PNS) plans to help at least 20 Bumiputera entrepreneurs in the small and medium enterprises (SMEs) per year. PNS Head of Financing Rasydan Jusoh said PNS will help the selected entrepreneurs by giving them a RM24,800 loan to expand their respective businesses. "The entrepreneurs will have to repay the loan in two or three years' time with 3% interest, which is the lowest interest rate.

"The selected entrepreneurs are required to own their business premises and to have Sijil Pelajaran Malaysia as minimum academic qualification," he told reporters after officiating the opening of Cold Time coffee outlet here today. (Bernama)

Seventy-eight percent out of all international students studying in Malaysia in 2014, are from the Organisation of Islamic Cooperation (OIC) countries. Second Education Minister Datuk Seri Idris Jusoh said, according to Education Malaysia Global Services, overall more than 116,000 international students from over 160 countries were studying in Malaysia's public and private universities as well as international schools. (Bernama)

Tourist arrivals to Labuan are expected to surpass the one million target this year. Labuan recorded 757,588 tourist arrivals from January to September compared to 718,393 during the same period of last year. Labuan Corporation chief executive officer Datuk Mohd Nadzri Osman said the number was anticipated to increase steadily driven by the number of various programmes outlined before year's end.

"The statistics have shown a big jump in tourist arrivals since early this year and we are optimistic the number continues to grow with international events on the cards before year's end," he said. (Bernama)

Daybreak│Malaysia

November 11, 2014

6

Malaysia has the potentials to lead a think tank initiative under the Organisation of Islamic Cooperation (OIC), said Federation of the Gulf Cooperation Council (GCC) Chambers Kingdom of Saudi Arabia Secretary-General, Abderrahim Hassan Naqi. He said Malaysia has the experience and economic stability to lead the think tank.

"The country should lead but with the condition that the think tank is independent and has good and strong financial support," he told reporters at the OIC Round Table Talk. Abderrahim was echoing a suggestion made by Muslim World BIZ chairman, Datuk Raja Mohamad Abdullah, for the establishment of a think-tank. The think tank was needed as it would strategically drive leaders and entrepreneurs in Islamic countries, he said. (Bernama)

The huge demand for halal products would ramp up the outlook for Muslim countries' economies in the future, said Federation of Gulf Cooperation Council Chambers Secretary General, Abderrahim Hassan Naqi. He said currently half the food, cosmetics and medicines sold in Muslim countries are imported from non-Muslim countries.

"The opportunities are quite huge for Islamic (Muslim) countries to tap into because we have many resources such as oil, gas and mining but we are hindered by politics," he told reporters at the Organisation of Islamic Cooperation Round Table Talk. He said cooperation among Islamic countries is still below expectation and they need to cooperate more to achieve unity. (Bernama)

The Securities Commission Malaysia (SC) has urged Bank Negara Malaysia to speed up the introduction of deposit and investment products under the Islamic Financial Services Act (IFSA) 2013. SC Syariah Advisor Prof Madya Dr Aznan Hassan said challenges faced by the SC and local Islamic banks include the timeline for the approval of new products that have been proposed to the central bank. "The market players are hoping to get the approval from the central bank as soon as possible so that they can move their plans forward and introduce the new IFSA-based products to customers. (Bernama)

Malaysia is set to attract more arbitration cases from Indian corporate and commercial entities amid its attractive policy. Both Singapore and Malaysia have offered tax exemption to arbitrators and lawyers and the former is a favoured arbitration destination for Indian lawyers and mediators, the Times of India reported. "But with visa and work permit exemption, Malaysia will attract more arbitration cases from Indian corporate and commercial entities," International Arbitrator Dhandapani Sarvanan was quoted as saying by the English daily. (Bernama)

Political News

Datuk Seri Abdul Hadi Awang is being persuaded by his peers in PAS to resign as party president, sources say, to prevent his health and relationship with other Pakatan Rakyat leaders from becoming worse. This is so that the Islamist party can repair ties with Pakatan partners that have been strained lately by Haid's cold attitude towards the coalition. A veteran PAS leader said Hadi's temperament has changed since his hospitalisation in Istanbul, Turkey, in May, where he was admitted after complaining of breathing difficulties. (Financial Daily)

Daybreak│Malaysia

November 11, 2014

7

Corporate News

Palm oil stockpiles in Malaysia climbed to the highest level since February 2013 as production fell less than predicted by analysts and traders. Reserves rose 3.7% to 2.17m metric tons in October from a month earlier while output slid 0.2% to 1.89m tons. (Bloomberg)

Please refer to our note for details.

The merger of RHB Islamic Bank, Malaysia Building Society Bhd and CIMB Islamic Bank to create the country’s first and largest mega Islamic bank is expected to be completed by the first quarter of next year. RHB Islamic MD and CEO Ibrahim Hassan said merger talks are on-going and all parties involved are undertaking due diligence in preparation for the merger. “Talks are ongoing and we expect it to be completed by the first quarter of next year,” Ibrahim said. (BT)

Kuala Lumpur Kepong Bhd's (KLK) subsidiary KL-Kepong Plantations Holdings Sdn Bhd has entered into a joint venture agreement with PT Astra Agro Lestari Tbk (Aali), to take up a 50% stake in an existing company incorporated in Indonesia. Through this proposed transaction, KLK will be bringing in its downstream expertise, whereas, Aali will be bringing in its local market insight to supply sourcing as well as significant supply of good quality raw material. The proposed transaction is to be completed in the first quarter of 2015. (sun)

Malaysia Airports Holdings Bhd (MAHB) has proposed a one-for-five rights issue to raise RM1.32bn to acquire the remaining 40% per cent stake in Turkish airport ventures Istanbul Sabiha Gokcen Uluslararasi Havalimani Yatirim, Yapim Ve Isletme A.S (ISG) and LGM Havalimani Isletmeleri Ticaret Ve Turizm A.S (LGM Tourism). MAHB will issue rights for 274.8m new shares, it said in a filing to Bursa Malaysia yesterday.

The airport operator said the purchase consideration for the stake in ISG is €285m (RM1.1bn). The balance of the proceeds of about RM80m will serve as general working capital and the remaining RM60.9m will be used for estimated fees and expenses for the corporate exercise. It said the exercise is expected to be completed in the 1Q15. (BT)

Malaysia Airports Holdings Bhd (MAHB) said passenger movements for Oct 14 increased marginally by 0.1% to 6.831 million compared with 6.827 million in the same month a year earlier. “This is an improvement after a contraction of 5% in August and a contraction of 1.8% in September," said MAHB. It added that the international sector grew by 0.7% while domestic sector declined by 0.5% over the same period last year.

"North Asia, Middle East and Europe sectors recorded a decline in traffic compared with last year," it said.

It added that the average load factor for international and domestic sectors eased 3% points compared to Oct 13.

Year-to-date, MAHB's traffic grew by 6.1%, registering 68.1 million passengers compared to the same period in 2013. (Bernama)

Daybreak│Malaysia

November 11, 2014

8

AirAsia X, the long-haul low-cost affiliate of AirAsia Group, continues to stimulate air travel demand with the number of passengers it carried in the 3Q14 rising 24% to 1.04 million from 843,693 in the same period a year ago. However, the carrier’s load factor in the 3Q fell to 80.6% from 82.3% in the same period last year. “In maintaining its clear market leader position in terms of passengers carried on direct flights between Malaysia and each of its core markets in Australia and North Asia, the company achieved stronger passenger traffic in revenue passenger per kilometre (RPK) from 4.227 million to 5.129 million (year-on-year),” AirAsia X said. (BT)

The renminbi clearing bank to be set up in Malaysia is a recognition of the country’s role as a key renminbi offshore centre among emerging economies in Asia. Local banks welcomed the initiative, saying it would boost trade finance and remittance businesses between Malaysia and China. Financial cooperation between the two countries has accelerated on the back of growing bilateral trade, which has expanded by more than tenfold since 2000. Malaysia is China’s largest trading partner in Asean and trade between both countries exceeded US$100bn (RM333bn) last year. (BT)

Fitch Ratings says in a special report released that competition in the Malaysian telecom industry will remain intense in 2015, particularly among mobile operators, which could lead to their average operating EBITDA margin narrowing by 1pp-1.5pp. However, competition will not be as fierce in the fixed-line and broadband sector, which we expect to be dominated by Telekom Malaysia Berhad in the medium term. Average industry revenue will increase by 3%-5% in 2015 driven by strong growth in broadband and mobile data services. (StarBiz, Reuters)

IOI Properties plans to undertake a renounceable rights issue of 540m new shares to raise up to RM1.025bn, mainly for its investment properties at IOI Resort City in Putrajaya. The amount raised will cover the development costs of the completion of common infrastructure at IOI City Towers One and Two and IOI City Hotel. In addition, about RM200m will be used for investment opportunities while RM325m will be allocated for working capital. IOI Properties is suggesting an issue of RM1.90, a 28% discount to the theoretical ex-all price of RM2.64 based on a 5-day volume weighted average market price of IOI Property shares. (Financial Daily)

Berjaya Corp has placed out a total of 50.055 million shares, or a 6.1% stake in Berjaya Auto via a direct business transaction for RM160.18m, or RM3.20 apiece. The deal brings BCorp's stake in BAuto down to 44.28% from 50.47% previously. (Sun)

Carimin Petroleum made a steady debut on Bursa Malaysia, opening at RM1.12 which was two sen above its offer price of RM1.10. It closed at RM1.15 with 43m shares changed hands. The IPO raised RM66.8m in proceeds for the company. It is bidding for an estimated RM800m worth of contracts from oil & gas players operating in Malaysia and foreseeing a success rate of more than 20%, said MD Mokhtar Hashim. The orderbook, which will last it until 2018, stands at RM900.8m to date. (Star, Sun)

Daybreak│Malaysia

November 11, 2014

9

Controlling shareholder Siva Kumar M Jeyapalan will be hiving off his entire 32% stake in ailing Masterskill Education Group Bhd to subsidiaries of SMRT Holdings Bhd and private equity fund, Creador II LLC. The acquirers are SMRT's unit Strategic Ambience Sdn Bhd and Rahpia Ltd, a subsidiary of Creador. In a joint statement by SMRT and Creador, the two companies said Siva had given an undertaking "committing to accept to any offer which the acquirers may make "for Siva's stake after due diligence on Masterskill is conducted. The offer price for the acquisition of Siva's stake is 60 sen a share. If the deal goes through, Creador and SMRT will make a mandatory takeover offer to acquire all the remaining shares in Masterskill at the same price. (Financial Daily)

Al-Aqar Healthcare REIT proposes to undertake a private placement at a price to be determinced later to raise gross proceeds of up to RM40m to part finance acquisition of land. In a filing to Bursa Malaysia yesterday, the manager of Al-Aqar, Damansara REIT Managers Sdn Bhd said that Al-Aqar proposed to undertake acquisition of two parcels of freehold land together with buildings erected thereon from Puteri Nursing College Sdn Bhd, a wholly-owned unit of KPJ Healthcare Bhd for RM77.8m. (SunBiz)

Protasco, which is embroiled in a boardroom tussle, said it will continue efforts to recover US$27m (RM88m) invested in PT Anglo Slavic Utama (PT ASU) for its oil and gas operations in Indonesia. The integrated one-stop infrastructure development provider had attempted to buy a 63% stake in PT Anglo Slavic Indonesia but the deal was terminated after fraud was allegedly discovered.

“My sole objective is, and always has been, to protect the interests of Protasco and its shareholders. This is why I am putting aside my personal dispute, which involves an outstanding RM10m loan under JF Apex facility from (non-executive director) Tey Por Yee,” said Protasco MD Datuk Seri Chong Ket Pen. (BT)

Datasonic Group Bhd says it unit Datasonic Technologies Sdn Bhd has won a RM8.72m contract from Majlis Perbandaran Pulau Pinang for the supply, installation and maintenance of closed-circuit television cameras around the island. The contract will be commencing from December 5 2014 to March 27 2020, Datasonic told Bursa Malaysia yesterday. (BT)

Dagang Nexchange Bhd’s (DNeX) third quarter profit ended September 2014 jumped 10.5% to RM8.4m from RM7.6m a year ago, thanks to improved trade facilitation business and better operational efficiencies. Deputy executive chairman Datuk Samsul Husin said in a statement that DNeX will continue to leverage on the existing client base and established presence in the trade facilitation business and firming up its services. The group recently launched myTrade2Cash, a centralised online trade financing service in collaboration with Maybank group. (BT)

Daybreak│Malaysia

November 11, 2014

10

BMSB: Changes in shareholdings

Type of No of Ave Price

10-Nov-14 Date transaction securities Company (RM)

EPF 3/11-5/11 Disposed 9,136,100 IOI PROPERTIES GROUP

EPF 5/11 Disposed 4,204,000 DIALOG GROUP

EPF 4/11-5/11 Disposed 3,984,200 MALAYAN BANKING

EPF 3/11-5/11 Disposed 3,316,300 IOI CORPORATION

EPF 5/11 Disposed 2,710,200 SAPURAKENCANA PETROLEUM

EPF 4/11-5/11 Disposed 2,109,700 PERISAI PETROLEUM

EPF 5/11 Disposed 2,003,800 DIGI.COM

EPF 5/11 Disposed 1,923,600 PUBLIC BANK

EPF 5/11 Disposed 550,000 IJM CORPORATION

EPF 5/11 Disposed 520,700 BERJAYA AUTO

EPF 5/11 Disposed 452,900 TELEKOM MALAYSIA

EPF 5/11 Disposed 432,700 AFG

EPF 5/11 Disposed 398,200 EASTERN & ORIENTAL

EPF 5/11 Disposed 380,000 PETRONAS GAS

EPF 5/11 Disposed 358,200 SIME DARBY

EPF 5/11 Disposed 232,100 WCT HOLDINGS

EPF 5/11 Disposed 93,000 TA ANN HOLDINGS

EPF 5/11 Disposed 50,000 FELDA GLOBAL VENTURES

EPF 5/11 Disposed 35,000 HARTALEGA HOLDINGS

EPF 5/11 Disposed 13,000 AEON CO. (M)

Skim Amanah Saham Bumiputera 4/11 Disposed 543,000 AXIATA GROUP

Lembaga Tabung Haji 27/10-6/11 Disposed 6,038,500 BIMB HOLDINGS

Lembaga Tabung Haji 6/11 Disposed 3,400,000 Y.S.P.SOUTHEAST ASIA

Lembaga Tabung Haji 6/11 Disposed 3,250,000 UZMA

Columbia Wanger Asset Management, LLC 5/11-6/11 Disposed 1,053,100 7-ELEVEN MALAYSIA

Aberdeen Asset Management PLC 5/11-6/11 Disposed 43,300 TASEK CORPORATION

Mitsubishi UFJ Financial Group, Inc 4/11 Disposed 1,209,000 CIMB GROUP

Mitsubishi UFJ Financial Group, Inc 4/11 Disposed 20,000 SHANGRI-LA HOTELS

Mitsubishi UFJ Financial Group, Inc 4/11 Disposed 3,500 TASEK CORPORATION

EPF 5/11 Acquired 2,842,000 GAMUDA

EPF 5/11 Acquired 1,688,900 AMMB HOLDINGS

EPF 5/11 Acquired 500,000 TAN CHONG MOTOR

EPF 31/10-3/11 Acquired 385,400 KOSSAN RUBBER INDUSTRIES

EPF 5/11 Acquired 244,700 UMW HOLDINGS

EPF 5/11 Acquired 200,000 CAPITAMALLS MALAYSIA TRUST

EPF 5/11 Acquired 151,500 IGB CORPORATION

EPF 5/11 Acquired 96,600 MBM RESOURCES

EPF 5/11 Acquired 88,300 KPJ HEALTHCARE

EPF 5/11 Acquired 61,700 TOP GLOVE

EPF 5/11 Acquired 59,900 POS MALAYSIA

EPF 4/11 Acquired 59,800 AXIATA GROUP

EPF 5/11 Acquired 25,000 HOCK SENG LEE

EPF 5/11 Acquired 14,900 IJM PLANTATIONS

EPF 5/11 Acquired 7,700 IHH HEALTHCARE

Kumpulan Wang Persaraan 31/10-6/11 Acquired 6,775,700 AXIS REIT

Lembaga Tabung Haji 30/10-6/11 Acquired 1,543,100 GAS MALAYSIA

Lembaga Tabung Haji 30/10-6/11 Acquired 876,100 YLI HOLDINGS

Lembaga Tabung Haji 3/11-6/11 Acquired 35,300 BHIC

Lembaga Tabung Haji 4/11 Acquired 17,400 HAP SENG PLANTATIONS

Lembaga Tabung Angkatan Tentera 3/11-5/11 Acquired 1,566,300 BOUSTEAD HOLDINGS

Franklin Resources, Inc. 6/11 Acquired 166,800 OLDTOWN

MM Asset Management Holding LLC 5/11 Acquired 12,900 GENTING

T. Rowe Price Associates, Inc 3/11 Acquired 10,900 ASTRO MALAYSIA

Aberdeen Asset Management PLC 4/11 Acquired 3,900 AEON CO. (M)

EKSONS CORPORATION 10/11 Shares Buy Back 16,900 EKSONS CORPORATION 1.38 SOURCES: BMSB

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BMSB: ESOS & others

11-Nov-14 No Of New Shares Date of Listing Nature of transaction

SUNWAY BERHAD 307,500 11-Nov-14 Exercise of Warrants-16 SOURCES: BMSB

BMSB: Off-market transactions

10-Nov-14 Vol

SUNREIT 31,500,000

KULIM-WC 23,000,000

BJAUTO 16,396,000

AMBANK 10,319,150

MAYBANK 10,000,000

SILKHLD 4,630,800

JIANKUN 4,000,000

MEDIAC 3,920,000

MEDIA 2,044,400

BJLAND 1,512,000

CRESNDO 850,000

BAHVEST 800,000

THHEAVY 500,000 Notes:CN-Crossing deal on board lots

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

SOURCES: BMSB

BMSB: Dividends

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

DAIBOCHI PLASTIC  Interim dividend - single tier 2.50 21-Oct-14 13-Nov-14 17-Nov-14 11-Dec-14

UNISEM Interim dividend - single tier 2.00 30-Oct-14 13-Nov-14 17-Nov-14 3-Dec-14

TASEK CORPORATION Special interim dividend - single tier 50.00 4-Nov-14 17-Nov-14 19-Nov-14 8-Dec-14

PETRONAS GAS 2nd interim dividend - single tier 20.00 4-Nov-14 18-Nov-14 20-Nov-14 8-Dec-14

PETRONAS DAGANGAN Interim dividend - single tier 12.00 4-Nov-14 18-Nov-14 20-Nov-14 5-Dec-14

KLCC REIT 3rd interim dividend - taxable 5.14 7-Nov-14 20-Nov-14 24-Nov-14 17-Dec-14

KLCC PROPERTY  3rd interim dividend - single tier 3.05 7-Nov-14 20-Nov-14 24-Nov-14 17-Dec-14

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

DIALOG GROUP Final dividend - single tier 1.10 27-Oct-14 26-Nov-14 28-Nov-14 18-Dec-14

BONIA CORPORATION Final dividend - single tier 2.50 28-Oct-14 27-Nov-14 1-Dec-14 22-Dec-14

JAYA TIASA 1st & Final dividend - single tier 1.50 30-Oct-14 1-Dec-14 3-Dec-14 17-Dec-14

KAREX Final dividend - single tier 25.00 5-Nov-14 10-Dec-14 12-Dec-14 22-Dec-14

GUINNESS ANCHOR Final dividend - single tier 44.50 5-Nov-14 10-Dec-14 12-Dec-14 31-Dec-14

MEDIA PRIMA 2nd interim dividend - single tier 3.00 6-Nov-14 10-Dec-14 12-Dec-14 30-Dec-14

SUPERMAX  Interim dividend - single tier 4.00 7-Nov-14 26-Dec-14 30-Dec-14 28-Jan-15 SOURCES: BMSB

BMSB: Proposed cash calls & trading of rights…

11-Nov-14 Ann Date Proposed

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

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

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

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

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

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

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

MY E.G. SERVICES 30-Oct-14 Bonus issue 1:1 SOURCES: BMSB

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Corporate Actions

November 2014

SUN MON TUE WED THU FRI SAT

30 1

2 3 4 5 6 7 8

Malaysia Airports 3Q Tasek 3Q, Pet. Gas 3Q, Pet. Dagangan 3Q

IFCA 3Q, MMHE 3Q, Perisai 3Q

PetChem 3Q, Media Prima 3Q, F&N 4Q, Sunway REIT 1Q, IFCA 3Q briefing, BNM Interest Rate

MISC 3Q, Supermax 3Q, KLCC Property 3Q, F&N 4Q briefing, External Trade, External Reserves (month-end data)

9 10 11 12 13 14 15

MPOB Oct stats Astro 3Q & conf. call, Industrial Production

MPI 1Q Maxis 3Q, Tomypak 3Q, MPI 1Q briefing

GDP, BoP Current Account Balance

16 17 18 19 20 21 22

IOI Corp 1Q AirAsia X 3Q, MAS 3Q, Hartalega 2Q, Benalec 1Q

AirAsia 3Q, MSM 3Q, KLK 4Q, Star 3Q, Kossan 3Q, CPI

Mah Sing 3Q, Eco World 12-mths results

Genting 3Q, Genting M’sia 3Q, Thong Guan 3Q, 7-Eleven 3Q, Foreign Reserves (mid-month data)

23 24 25 26 27 28 29

Axiata 3Q, WCT 3Q, Uchi 3Q

UOA Dev 3Q, E&O 2Q, IJM Corp 2Q & briefing, Carlsberg 3Q, WCT 3Q briefing, Umno general assembly

UEM Sunrise 3Q, Prestariang 3Q, FGV 3Q, MCIL 2Q, Star 3Q briefing, Umno general assembly

TM 3Q, Magnum 3Q, Prestariang 3Q briefing, Umno general assembly

Sime Darby 1Q, Karex 1Q, Wellcall 4Q, Money Supply, Umno general assembly,

Umno general assembly

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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Corporate Actions

December 2014

SUN MON TUE WED THU FRI SAT

1 2 3 4 5 6

External Trade, External Reserves (month-end data)

7 8 9 10 11 12 13

Eco World 13-mths results & briefing

Industrial Production

14 15 16 17 18 19 20

SP Setia 4Q

21 22 23 24 25 26 27

Foreign Reserves (mid-month data)

Christmas Day

28 29 30 31

Money Supply

Source: Company, BNM, DOS, CIMB estimates

SOURCES: Company, BNM, DOS, CIMB estimates

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CIMB Recommendation Framework

Stock Ratings Definition

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

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

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

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

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