Telecommunications Sector Update : Sizing Up The Pure Mobile Domestic Players – Maxis vs. DiGi - 22/10/2010

♦ Comparing green apple to yellow apple. In this report, we make a
comparison between the only two purely domestic focused mobile operators
in Malaysia, i.e. Maxis and DiGi.


Telecommunications Sector Update : Sizing Up The Pure Mobile Domestic Players – Maxis vs. DiGi - 22/10/2010

Media Sector Update - 9M10 Print And TV Adex Up By 18.2% - 21/10/2010

♦ Sep’s adex for print and TV media grew 3.4% yoy. According to Nielsen Media Research (NMR), Sep’s gross ad spend for print and TV
media rose 3.4% yoy with print adex up 7.0% yoy, while adex for TV remained flat yoy. MoM, total print and TV gross adex fell by 14.5%. This
was not too surprising considering that Aug adex benefited from the Merdeka celebrations and Hari Raya festival.


Media Sector Update - 9M10 Print And TV Adex Up By 18.2% - 21/10/2010

Property Sector Update - Going From Strength To Strength - 20/10/2010

♦ Upgrade valuations. We upgrade our valuations for the property stocks under
our coverage, as many have almost hit our target price recently. We still see
values in the sector led by sustained property prices and demand, and valuations
of many property stocks are still attractive, currently trading at or slightly below
their +1 stdev of 6-year P/B mean. Our expectation that ARPP will continue to hold
well until 2012/2013 suggests that the property sector will remain robust next year.

Property Sector Update - Going From Strength To Strength - 20/10/2010

Motor Sector Update - Lower TIV On Shorter Working Month - 20/10/2010

Yoy TIV down 5.8%, mom TIV down 21.3%. September TIV of
43,443 was marginally down (vs. 46.1k units in Sept-09), but still
reflective of the strong TIV numbers recorded since the beginning of the
year. The mom fall in TIV for September was unsurprising, as it was a
shorter working month and August TIV was a high base as consumers
rushed to purchase cars before the Hari Raya festivities.

Motor Sector Update - Lower TIV On Shorter Working Month - 20/10/2010

Corporate Highlights...-15/10/2010

♦ Tenaga Nasional
Results Preview : A Decent 4QFY10 Expected
♦ MBM Resources
News Update : Purchase Stake In Two Companies
♦ Semiconductor
News Update : Kick Starting The NKEA
♦ Market Technical Reading
Daily Trading Strategy : Extension Of Buying Momentum Upon Removal Of 1,500...




Corporate Highlights...-15/10/2010

Semiconductor Sector Update : Kick Starting The NKEA-15/10/2010

Fabs investment in NCER. Five new wafer fabrication plants will be developed in the Northern Corridor Economic Region (NCER) as one of the Entry Point Projects (EPPs). The fabs are a joint venture between QT Hightech Malaysia Sdn Bhd and Lfoundry Gmbh. In addition, the plant is expected to start production in 2012 with a production capacity of 60,000 wafers per month. The plant will join local pure-play fab players i.e. Silterra and First Silicon which have capacities of 40,000 and 62,000 wafers per month respectively.


Semiconductor Sector Update : Kick Starting The NKEA-15/10/2010

Plantation Sector Update : The Contagion Effect – How Much More Can It Go? - 12/10/2010

Disappointing production, spike in exports. Malaysia’s CPO production fell in September by 2.7% mom to 1.56m tonnes, while exports rose by significant 21.2% mom to 1.47m tonnes. On a yoy basis, production was slightly higher, rising 0.3% yoy, while exports rose by a larger 10.9% yoy. Despite the significant jump in exports, the reduction in production, slightly higher imports and lower domestic use caused closing CPO stock levels to remain relatively flat at 1.708m tonnes in Sept (from 1.704m tonnes in Aug). As a result of the flat CPO stock levels, stock/usage ratio
in Sept was also relatively flat at 9.18% (from 9.12% in Aug), in line with the 7-year average of 9.1%.

Plantation Sector Update : The Contagion Effect – How Much More Can It Go?-12/10/2010

Consumer Sector Update : Rising Consumerism, Tobacco Hit By Early Excise, Brewery To Await Verdict - 07/10/2010

♦ Consumer spending growth to moderate but remain resilient. RHBRI
forecasts a consumer spending growth of 5.4% p.a. for 2011. Although this
is a more moderate growth compared to the forecasted consumer spending
growth for 2010 of 5.6%, we believe the growth is still relatively resilient,
given the rising consumerism and high savings of the Malaysian population.
The main reasons for the slight dip in consumer spending growth in 2011
are: 1) the subsidy removal; 2) the reinstatement of EPF employee’s
contribution to 11% from 8%; and 3) the higher base effect.

Consumer Sector Update : Rising Consumerism, Tobacco Hit By Early Excise, Brewery To Await Verdict - 07/10/...

Plantation Sector Update : The Battle Of The Giants - IOIC vs KLK - 06/10/2010

♦ Comparing the two big boys of plantation. In YTD 2010, the share price
performance of big-cap plantation stocks has been relatively dismal, compared to
the KLCI. Up to 5 Oct, the KLCI has risen 15.4% YTD, Sime Darby has fallen
5.5%, IOIC has risen 0.4% and KLK has risen 3.6%. While there have been
special circumstances surrounding the underperformance of Sime Darby, we
believe there is no reason for the underperformance of IOIC and KLK. This is due
to the fact that CPO prices have actually risen by 6% year-to-date and historically,
the share prices of IOIC and KLK have generally followed in tandem. We believe
that the share prices of these two big-cap stocks are due for a rerating on the
back of continued liquidity in the market and given our view that average CPO
prices are expected to be higher on a yoy comparison in 2011.

Plantation Sector Update : The Battle Of The Giants - IOIC vs KLK - 06/10/2010

Plantation Sector Update : The Battle Of The Giants - IOIC vs KLK - 06/10/2010

♦ Comparing the two big boys of plantation. In YTD 2010, the share price
performance of big-cap plantation stocks has been relatively dismal, compared to
the KLCI. Up to 5 Oct, the KLCI has risen 15.4% YTD, Sime Darby has fallen
5.5%, IOIC has risen 0.4% and KLK has risen 3.6%. While there have been
special circumstances surrounding the underperformance of Sime Darby, we
believe there is no reason for the underperformance of IOIC and KLK. This is due
to the fact that CPO prices have actually risen by 6% year-to-date and historically,
the share prices of IOIC and KLK have generally followed in tandem. We believe
that the share prices of these two big-cap stocks are due for a rerating on the
back of continued liquidity in the market and given our view that average CPO
prices are expected to be higher on a yoy comparison in 2011.

Plantation Sector Update : The Battle Of The Giants - IOIC vs KLK - 06/10/2010

Power Sector Update : Spotlight On Industry Reforms - 05/10/2010

♦ Industry reforms expected to hog spotlight next year. In our view,
the main focus for the sector next year would be on industry reforms. These
could potentially include: 1) renegotiations on the first generation power
purchase agreements (PPAs) with the independent power producers (IPPs),
which are ongoing; 2) the removal of subsidies for natural gas; and 3) a
formal tariff formula for TNB.

Power Sector Update : Spotlight On Industry Reforms - 05/10/2010

Semiconductor Sector Update : Aug Chip Sales Up 1.8% MoM But Slowing Down YoY - 05/10/2010

♦ Chip sales higher mom. Chip sales continued with its tenth month of growth
on yoy basis. However, its growth continued to narrow to 32.6% vs. 37.0% in
Jul and a high of 58.4% in Mar. Mom, Aug chip sales of US$25.7bn grew
1.8%, higher than Jul’s gain of 1.2%, but lower than the high of 5.2% in May.
Geographically, Aug sales grew on a mom basis for US (+2.0%), Europe
(+0.1%), Japan (+4.1%) and Asia (+1.4%).

Semiconductor Sector Update : Aug Chip Sales Up 1.8% MoM But Slowing Down YoY - 05/10/2010

Oil And Gas Sector Update : Petronas’ 1QFY11 Net Profit Up - 05/10/2010

♦ Petronas net profit up 60.5%. Petronas’ 1QFY3/11 net profit grew a
significant 60% yoy on the back of higher revenue from higher oil prices and
cost-cutting measures. The upstream and gas and power divisions’ EBIT
earnings grew 54.1% and 27.9% respectively. However operationally all
divisions’ production were flattish. These results are unsurprising given that
2009 was a watershed year for the whole of the oil and gas sector.

Oil And Gas Sector Update : Petronas’ 1QFY11 Net Profit Up - 05/10/2010

Property Sector Update : Still In Hot Flavour - 04/10/2010

♦ Regulatory measures unlikely to be harsh. While we believe the property
sector will be imposed with tighter rules, any new measures are likely to be
moderate as the Government would not want to dampen the whole property sector.
In line with our view, the PM has also recently indicated that new measures are
likely to target at home buyers who own more than two houses. Undoubtedbly the
proposed measures could reduce some speculative acitivies due to lower leverage
ability, we think the overall impact on the property sector would be moderate, as:
(i) Young populations are typically the first or second home owners; and (ii) Buyers
who own more than two homes are generally the affluent group.

Property Sector Update : Still In Hot Flavour - 04/10/2010

Corporate Highlights...-01/10/2010

♦ Market Outlook & Strategy
4Q2010 : Volatility As Economic Worries Persist

♦ Banking
Sector Update : Aug ‘10 System Data – Monthly Applications At Another High And Broad- Based

♦ Fajarbaru Builder Group
News Update : Lands RM62.4m Automotive Industrial Park Infrastructure Job

♦ Hiap Teck Venture
Results Note : FY07/10 Results Boosted By Better Margins

♦ Market Technical Reading
Daily Trading Strategy : Optimism On A Technical Rebound Persists...

Corporate Highlights...-01/10/2010

Banking Sector Update : Aug ‘10 System Data – Monthly Applications At Another High And Broad-Based-01/10/2010

Aug ‘10 banking system loan growth – up 11.8% yoy. Aug ’10 loan growth remained stable at +11.8% yoy vs. +11.9% yoy in Jul ’10. Overall system-wide loan growth was driven by the household segment (+13.4% yoy vs. Jul ’10: +13.2% yoy) with growth still broad-based, i.e. purchase of residential (+12.3% yoy) and non-residential (+19.1% yoy) properties, passenger cars (+8.5% yoy), personal use (+16.2% yoy) and credit cards (+13.6% yoy).


Banking Sector Update : Aug ‘10 System Data – Monthly Applications At Another High And Broad-Based-01/10/2010

Plantation Sector Update : The “Knock-On” Effect - 30/09/2010

♦ Knock-on effect from changes in other vegetable oil dynamics.
Although not much has changed in terms of the fundamental demand and
supply factors of CPO in the last few months, there have been changes in
the dynamics of other vegetable oils, and this has had a knock-on effect on
CPO prices. Since June 2010, soyoil prices have risen 25%, while rapeseed
oil prices have risen 20% and CPO prices by 14.4% to current levels.

Plantation Sector Update : The “Knock-On” Effect - 30/09/2010

Motor Sector Update : Another Month Of Good Numbers - 27/09/2010

♦ TIV still going strong. August’s TIV reached 55,208 units and was up
13.7% yoy and 3.2% mom (+2.9% yoy and -1% mom in July). Better
numbers were mainly due to the rush for car deliveries before the Hari
Raya festivities. Going into September, MAA has mentioned that TIV
numbers will be lower due to consolidation after the rush for deliveries
and clearing of back order. We also expect the shorter working month to
be another reason for softer sales in the coming month. YTD TIV of
409,806 achieved 70% of our full-year forecast of 587,698 and 72% of
MAA’s forecast of 570,000.

Motor Sector Update : Another Month Of Good Numbers - 27/09/2010

Banking Sector Update : Looking Forward To Another Good Year - 24/09/2010

♦ Investors’ focus likely turning to 2011. 3QCY10 was, in our view,
generally a good quarter for the banking sector in terms of news flow. In
a nutshell, system-wide leading indicators remained positive despite three
Overnight Policy Rate (OPR) hikes by BNM thus far this year, the
reporting season generally surprised on the upside while the capital
requirements set for Basel III were not as onerous as feared.

Banking Sector Update : Looking Forward To Another Good Year - 24/09/2010

Media Sector Update - Aug ’10 Print And TV Ad Spend Up 8.7% YoY - 23/09/2010

♦ Aug’s adex for print and TV media grew 8.7% yoy. According to
Nielsen Media Research (NMR), Aug’s gross ad spend for print and TV
media rose 8.7% yoy with both print and TV media reporting yoy growth
of 11.3% and 5.7% respectively.

Media Sector Update - Aug ’10 Print And TV Ad Spend Up 8.7% YoY - 23/09/2010