RHB Equity 360° - 11 October 2010 (Market, AirAsia, WCT, BAT; Technical: KPJ, AirAsia)

Market Update
- We expect MMHE to be included in the FBM 100 at the 37th position by full market cap, and with an estimated index weight of around 0.31% based on the indicative institutional IPO price of RM3.80. As for Petronas Chemicals, the stock will likely qualify for inclusion into the FBM KLCI given its indicative size.
- After completion of both IPOs, Petronas-related stocks will have combined weightings of 8.77% and 7.49% on the FBM KLCI and FBM 100 respectively, vs. 5.51% and 4.45% currently.

RHB Equity 360° - 11 October 2010 (Market, AirAsia, WCT, BAT; Technical: KPJ, AirAsia)

KPJ Healthcare Berhad : Expanding Into The Aged Care Business - 23/09/2010

♦ Acquires 51% stake in Jeta Gardens. KPJ announced that it has acquired
a 51% stake in Jeta Gardens (Qld) Pty Ltd for a cash consideration of
RM19m. The purchase consideration will be financed via internally-generated
funds.

KPJ Healthcare Berhad : Expanding Into The Aged Care Business - 23/09/2010

KPJ Healthcare Berhad : Expecting A Stronger 2H10 - 01/09/2010

♦ 1H10 net profit grew 20.8% yoy. KPJ’s 1HFY10 net profit came in at RM56.4m (+20.8% yoy), which accounted for 45% and 47% of our and consensus full-year estimates respectively. We consider this to be within expectations as we expect 2HFY10 earnings to be stronger on the back of: 1) contribution from 51%-owned Sabah Medical Centre, which KPJ acquired in Jan; and 2) full-contribution from Bukit Mertajam Hospital, in which KPJ acquired the remaining 30% equity interest in May.

KPJ Healthcare Berhad : Expecting A Stronger 2H10 - 01/09/2010

KPJ Healthcare Berhad : Back To Fundamentals - 27/07/2010

M&A’s concluded. Khazanah yesterday offered to buy all remaining shares that it does not own in Parkway Holdings for S$3.95 per share. We note that the offer price is 3.9% higher than Fortis’ offer of S$3.80 per share. Fortis has reportedly decided to bow out of the bidding war and accept Khazanah’s offer. Khazanah will thus need to fork out approximately S$3.5bn (RM8.2bn)for the takeover. We note that the other takeover for Healthscope in Australia has also been concluded with the consortium comprising US private equity firms, Carlyle Group and TPG Capital winning the bid at A$2bn.

KPJ Healthcare Berhad : Back To Fundamentals - 27/07/2010

RHB Equity 360° - 27 July 2010 (CSC Steel, KPJ; Technical: KKB)

Top Story : CSC Steel – Strong performance to sustain into 2QFY12/10 Outperform
Results Preview
- We believe 2QFY12/10 results are likely to come in at RM32-33m, which is 5-8% higher than the previous quarter’s net profit of RM30.6m. This means 1HFY12/10 net profit is likely to come in at RM61-64m, which is 74.3-76.7% of our full-year forecast.
- Despite having anticipated a strong 2Q, we are keeping our FY12/10 net profit forecast unchanged, as we believe CSC Steel’s performance is likely to weaken significantly in 3Q.
- We expect the prices of steel products will likely stage a rebound in 4Q, as: 1) Steel consumption is seasonally stronger in 4Q; and 2) Concerns on overcapacity are likely to ease in the near term.
- Indicative fair value is RM2.10, based on unchanged 9x FY12/11 EPS of 23.3 sen.

RHB Equity 360° - 27 July 2010 (CSC Steel, KPJ; Technical: KKB)

Corporate Highlights - 27/07/2010

♦ CSC Steel
Results Preview : Strong Performance To Sustain Into 2QFY12/10

♦ KPJ Healthcare
Company Update : Back To Fundamentals

Corporate Highlights - 27/07/2010

Corporate Highlights - 17/6/2010

♦ KPJ Healthcare
Visit Note : Brighter Prospects Ahead

♦ Top Glove Corporation
Results Note : No Surprises

♦ Market Technical Reading
Daily Trading Strategy : Technical Pullback Likely To Below 1,300...

Corporate Highlights - 17/6/2010

KPJ Healthcare Berhad : Brighter Prospects Ahead - 17/6/2010

Revenue growth drivers. For FY09, KPJ recorded a revenue growth of 14.9% yoy largely due to higher contribution from all of its business segments. Moving forward, we believe KPJ’s revenue growth drivers include: o The opening of at least two new hospitals p.a.;
o Expansion of its existing hospitals;
o Enhancing its presence in medical tourism; and
o Higher utilisation rate per patient.

KPJ Healthcare Berhad : Brighter Prospects Ahead - 17/6/2010

RHB Equity 360° - 17 June 2010 (KPJ, Top Glove; Technical: Titan)

KPJ Helathcare: Brighter Prospect Ahead
Visit Note
- For FY09, KPJ recorded a revenue growth of 14.9% yoy largely due to higher contribution from all of its business segments. Moving forward, we believe KPJ’s revenue growth drivers include:
1) the opening of at least two new hospitals p.a.;
2) expansion of its existing hospitals;
3) enhancing its presence in medical tourism; and
4) higher utilisation rate per patient.

RHB Equity 360° - 17 June 2010 (KPJ, Top Glove; Technical: Titan)

KPJ Healthcare Berhad : Moving To A New Valuation Benchmark - 7/6/2010

M&A in the healthcare space. There has been an increase in M&A activity in the healthcare sector recently, including Khazanah Nasional’s partial general offer for Singapore-listed Parkway Holdings’ shares and the start of bidding for Australia-listed Healthscope by private equity groups and USbased healthcare companies.

KPJ Healthcare Berhad : Moving To A New Valuation Benchmark - 7/6/2010

RHB Equity 360° - 7 June 2010 (KPJ; Technical: AirAsia, Gamuda)

Company Update
♦ There has been an increase in M&A activity in the healthcare sector recently, including Khazanah Nasional’s partial general offer for Singapore-listed Parkway Holdings’ shares and the start of bidding for Australia-listed Healthscope by private equity groups and US-based healthcare companies.
♦ Khazanah’s partial offer for Parkway values the shares at FY10-11 PER of 27.2x and 20.1x respectively, vs. 22.3x and 16.5x before the offer was announced (i.e. a premium of around 22%). As for Australia-listed Healthscope, the top bid of A$1.84bn (or A$5.80/share) so far values the company at a CY10 PER of 17.1x. These large takeover premiums support our view that there is significant growth potential for the healthcare sector in the region.

RHB Equity 360° - 7 June 2010 (KPJ; Technical: AirAsia, Gamuda)

Corporate Highlights... - 01/06/2010

♦ Strategy / Earning Review : Downdraft Of Fear; Longer-term Outlook Still Positive

♦ Benchmarking
Market Update : Anticipating The Mid-Year Review

♦ Banking
Sector Update : Apr ‘10 System Data – Broadly Stable

♦ Sunway Holdings
News Update : Secures RM210m Building Job From SunCity

♦ Maxis
Results / Briefing Note : Delivering On Dividends

♦ Alliance Financial Group
Results Note : Lower-Than-Expected LLP Helps Beat Estimates

Corporate Highlights...-01/06/2010

KPJ Healthcare Berhad : No Surprises - 1/6/2010

1Q10 net profit grew 24.7% yoy. KPJ’s 1Q10 net profit of RM27.2m (+24.7% yoy; -3.5% qoq) came in within our and consensus expectations, accounting for 24% of our and consensus full-year forecasts respectively. As expected, no dividends were declared during the quarter.

KPJ Healthcare Berhad : No Surprises - 1/6/2010

Corporate Highlights...-01/04/2010

♦ Market Outlook & Strategy 2Q2010 : Volatile Market Uptrend Amid Policy Normalisation

♦ Benchmarking
Market Update : First Quarter Review

♦ Plantation
Sector Update : USDA Planting Intentions – Concentrating On Corn, Not Soybean

♦ Plantation
Sector Update : Smooth Or Bumpy Ride Ahead?

♦ Telecommunicatons
Sector Update : Digi Unveils iPhone Plans

♦ Building Materials
Sector Update : Japanese and Chinese Steelmakers Conclude 2Q Iron Ore Benchmark Price

Corporate Highlights...-01/04/2010

KPJ Healthcare Berhad : Acquisition of Land in Plentong, Johor Bahru for RM7.1m-01/04/2010

Acquisition of land in Plentong, Johor Bahru. KPJ has entered into an S&P agreement with Johor Land Bhd and Johor Corp for the acquisition of a 3.25 acre land nPlentong, Johor Bahru, Johor for a cash consideration of RM7.07m which will befunded by internally generated funds. We believe the location of the land to be in the new Taman Bukit Dahlia township developed by Johor Land. Upon completion on the acquisition by 3Q2010, the land will be developed into a private specialisthospital. This proposed development will commence in 4Q2010 and is expected to be completed by end-2012. The development cost, estimated at RM54m, will be funded by internally generated funds and/or bank borrowings. We expect the commencement of the hospital operations to only begin in 2013 asgenerally, it would take a few months for the certification of fitness to beobtained.

KPJ Healthcare Berhad : Acquisition of Land in Plentong, Johor Bahru for RM7.1m-01/04/2010

RHB Equity 360° (Strategy, Market, Plantation, Telecom, Steel, Faber, KPJ, PetGas; Technical: DRB-Hicom) - 01/04/2010

Top Story : Market Outlook & Strategy 2Q2010 – Volatile market uptrend amid policy normalisation
Strategy Update
♦ Good prospects of a sustainable global economic recovery despite a number of global issues and concerns.
♦ Whilst both the Malaysian economic and corporate earnings recoveries are gaining pace, valuations are also back to normal levels.
♦ The market is however still very under-owned by foreign investors and potentially could be re-rate if these investors turn positive on the country’s economic reforms to bring about a more competitive economy.
♦ Meanwhile, we expect external events to dominate market movements and any global policy changes will likely cause the market to be volatile. Our year-end FBM KLCI target, however, remains unchanged at 1,400 or 15x 2011 earnings.
♦ In our view, any significant weakness in the market is an opportunity to accumulate quality stocks for longer-term performance as we believe that a global sovereign credit problem will unlikely unfold and the global economic recovery is more sustainable than feared.
♦ Stock picking is key. The challenge is to look for Alpha+ stocks, including recovery leaders and quality cyclicals that have a strong leverage to the economic recovery.
♦ In our view, the banking sector would continue to benefit from the economic recovery, while pent-up demand and new applications will likely attract new focus into the semiconductor industry. In addition, a base tariff review, which coupled with fundamental recovery in electricity demand, should augur well for TNB in the power sector, while strong data traffic and attractive dividend yields would present good investment themes for the telco sector.

RHB Equity 360°( Strategy, Market, Plantation, Telecom, Steel, Faber, KPJ, PetGas; Technical: DRB-Hicom) - ...

KPJ Healthcare Berhad : Injecting Another Three Hospitals Into KPJ REIT - 10/03/2010

Selling of three hospital buildings to KPJ REIT. KPJ is selling off three hospital buildings i.e. RS Bumi Serpong Damai, Kluang Utama Specialist Hospital and Bandar Baru Klang Specialist Hospital to Al-Aqar KPJ REIT (KPJ REIT) for RM138.8m to be satisfied with RM83.3m cash and 56.6m new units in KPJ REIT at an issue price of RM0.98 and a 5.8% discount to its NAV of RM1.04 as at 25 Feb 10.

KPJ Healthcare Berhad : Injecting Another Three Hospitals Into KPJ REIT - 10/03/2010

RHB Equity 360° (Plantation, Perwaja, Kinsteel, KPJ, Gamuda, WCT; Technical: Faber) - 10/03/2010

Top Story : Plantation – All for CPO prices crossing RM3,000/tonne mark Overweight
Sector Update

• We came away from the first day of the 2010 POC (Palm and Lauric Oils Conference) with a “bullish vibe”,as three of the speakers who made price forecasts had relatively bullish expectations, projecting CPO prices to cross the RM3,000/tonne mark this year.
• We admit most of the price forecasts given today were slightly more bullish than our expectations. While we believe it is possible for CPO prices to touch or cross the RM3,000/tonne mark, based on the current bullish momentum, we do not discount the potential for prices to fall back down in the normal seasonal peak period in 2H2010, assuming normal weather conditions. We believe Dorab Mistry’s projection for stronger CPO prices in 2H2010 would only come through if the impact of El Nino on production is relatively severe. As such, we maintain our average CPO price assumptions of RM2,500/tonne for 2010 and RM2,700/tonne for 2011. YTD average spot prices of CPO of approximately RM2,550/tonne is in line with our projection, which assumes stronger CPO prices in the first half of the year versus the second half, following the CPO production cycle.
• No change to our earnings forecasts. We maintain our Overweight stance on the sector as a whole and reiterate our recommendation for investors to stick with the more liquid stocks given the anticipated volatile market conditions in 2010. We maintain our Outperform recommendations on IOIC, KLK, Sime Darby and CBIP, and Underperform recommendation on Genting Plantations and IJMP.

RHB Equity 360° (Plantation, Perwaja, Kinsteel, KPJ, Gamuda, WCT; Technical: Faber) - 10/03/2010

KPJ Healthcare Berhad : On Track To Meet Its 2012 Target - 01/03/2010

In line. KPJ’s FY12/09 core net profit of RM98.7m (+22.0%) came in within our but above consensus expectations, accounting for 101% and 107% of our and consensus full-year forecasts respectively. KPJ recorded a gain on disposal of hospitals to Al-Aqar REIT totaling RM3.1m in FY09 and RM4.7m in FY08. KPJ declared second interim gross DPS of 4 sen (less 25% tax), bringing full-year gross DPS to 8 sen (after adjusting for share split and bonus issue) or net payout of 32%. We expect KPJ to announce final dividend or dividend-in-specie in a separate announcement, which would bring total net payout to 12 sen (from 15.2 sen in FY08).

KPJ Healthcare Berhad : On Track To Meet Its 2012 Target - 01/03/2010

RHB Equity 360° - 01/03/2010 (Carlsberg, Sime, Genting, Genting Msia, Maxis, Ann Joo, AirAsia, Affin, IKML, Suncity, KPJ, Faber, Kossan, MCIL, etc.)

Top Story : Carlsberg – Hello Singapore!
Outperform

Briefing Note

• In FY09, Carlsberg was hit with higher raw material costs, flattish industry volumes and an increase in offtrade consumption due to value pressure, but gained +1% market share.
• Imported premium beer segment grew 56% in FY09 and has received favourable feedback from on-trade consumers, which could translate to gaining more pub contracts in Klang Valley and reduce dominance of Guinness and Heineken. Four new brands in imported premium beer segment to be introduced in FY10.
• Total TIV expected to recover by 2% in FY10 (vs. our assumption of 1%) driven by improving consumer sentiment, later timing of CNY festive season and World Cup celebration. New contracts for raw material prices locked in at lower prices in Jan and margins expected to return to more normal levels. Concerns remain on value pressures from customers as they become more used to lower priced beer.
• No changes to our forecasts. Maintain fair value of RM5.90 based on unchanged WACC of 9.2%.

RHB Equity 360° -01/03/2010 (Carlsberg, Sime, Genting, Genting Msia, Maxis, Ann Joo, AirAsia, Affin, IKML, ...