Results Review, 27 February 2014

Genting Plantations (GENP MK)

Neutral (Maintained)

Agriculture - Plantation
Market Cap: USD2,437m

Target Price:
Price:

MYR11.20
MYR10.50
Macro
Risks

Ending FY13 On a High

Growth
Value

Genting Plantation (GENP MK)

Price Close

Relative to FTSE Bursa Malaysia KLCI Index (RHS)

12.0

133

11.5

127

11.0

122

10.5

116

10.0

111

9.5

105

9.0

99

8.5

94

8.0
3

88

0
0
.
2
0
0
GPs FY13 core net profit overshot our and consensus expectations, .
0
coming in at 140-145% of both FY13 forecasts, due to lower-than- 0
expected unit production costs and stronger-than-expected property 0
contributions. While we like the stocks growth prospects and solid
management, its valuations remain uninviting at this juncture. We
maintain our NEUTRAL call, with a SOP-based FV of MYR11.20.

2
2

Jan-14

Oct-13

Aug-13

Jul-13

Apr-13

Feb-13

Vol m

Source: Bloomberg

Avg Turnover (MYR/USD)

Cons. Upside (%)
Upside (%)
52-wk Price low/high (MYR)
Free float (%)

2.73m/0.83m
0.0
6.7
8.39 - 11.7
30

Shareholders (%)
Genting Berhad
EPF
Kumpulan Wang Persaraan
(Diperbadankan)

53.6
14.9
3.1

Shariah compliant

.
2
0
.
2

Above. Genting Plantations (GP)s FY13 core net profit was above our
and consensus expectations, coming in at 140-145% of the respective
FY13 forecasts. The main variance was the lower-than-expected unit
production cost in 4Q13 of MYR1,054/tonne (down 11% q-o-q), strongerthan-expected property contributions, as well as a lower-than-expected
overall effective tax rate of 15% in FY13 (versus our 23% projection). GP
recorded an exceptional loss of MYR22.3m in 4Q13 due to unrealised
losses on its USD-denominated debt.
Core net profit rose 10% y-o-y in FY13 while turnover grew 12%. The
net profit increase was due to improvements in its property division
(EBIT +148%), higher FFB production (+10%) and lower effective tax
rates, offset by a 15% drop in CPO average selling price (ASP), a 14%
decline in palm kernel (PK) ASP and a 6% y-o-y rise in production cost.
Briefing highlights: i) GP expects FY14 fresh fruit bunches (FFB)
production to grow 10-12% y-o-y (flat growth in Malaysia and a doubling
of production in Indonesia), which is slightly lower than our 15%
projection; ii) GP expects FY14 costs to be lower by 10-15% y-o-y, as it
has locked in 70% of its fertiliser requirements for Malaysia at prices
which are 23% lower y-o-y; iii) new planting of 5,800ha done in FY13,
targeting 6,000ha for FY14; and iv) the companys unbilled property
sales currently total MYR75m, and it expects to record new sales of c.
MYR200m for FY14.
Maintain NEUTRAL. We tweak our FY14 forecast 2.4% higher and
introduce our FY15 forecasts. Post earnings revision, we raise our SOPbased FV slightly to RM11.20 (from RM11.00), based on an unchanged
18x CY14 target P/E for the plantation division and the RNAV of its
property development landbank. While we like the stocks growth
prospects and solid management, its valuations remain uninviting at this
juncture. We maintain our NEUTRAL recommendation on the stock.

Forecasts and Valuations

Dec-11

Dec-12

Dec-13

1,336

1,233

1,384

1,555

1,795

Reported net profit (MYRm)

442

327

228

371

466

Recurring net profit (MYRm)

438

321

299

371

466

Recurring net profit growth (%)

38.1

(26.6)

(7.0)

24.0

25.7

Total turnover (MYRm)

Dec-14F

Dec-15F

Recurring EPS (MYR)

0.58

0.42

0.39

0.49

0.61

Hoe Lee Leng +603 9207 7605

DPS (MYR)

0.12

0.09

0.36

0.11

0.14

hoe.lee.leng@rhbgroup.com

Recurring P/E (x)

18.2

24.8

26.7

21.5

17.1

P/B (x)

2.46

2.33

2.33

2.14

1.98

P/CF (x)

14.2

35.5

22.1

38.9

15.8

1.2

0.9

3.4

1.0

1.3

12.0

19.1

18.8

15.1

11.9

9.8

6.7

10.4

12.0

1.0

8.0

8.8

(0.3)

2.4

Dividend Yield (%)

EV/EBITDA (x)
Return on average equity (%)
Net debt to equity (%)

14.5
net cash

Our vs consensus EPS (%)

See important disclosures at the end of this report

Source: Company data, RHB estimates

net cash

Powered by EFATM Platform

Genting Plantations (GENP MK)

27 February 2014
Figure 1: Quarterly results
FYE Dec (MYRm)

4QFY12

3QFY13

4QFY13

q-o-q
(%)

y-o-y
(%)

FY12

FY13

y-o-y
(%)

261.7

278.7

337.0

21

29

1081.4

1079.6

(0)

78.4

35.8

65.0

82

(17)

152.0

270.6

78

0.0

27.9

5.8

(79)

n.m.

0.0

33.7

n.m.

Turnover

340.1

342.4

407.8

19

20

1233.4

1383.9

12

Plantation

81.1

69.2

135.9

96

68

354.1

305.3

(14)

Property devt

16.8

11.3

25.3

124

51

33.1

82.0

148

Others

(6.7)

(5.0)

(6.8)

36

(31.2)

(30.7)

(2)

EBIT

91.2

75.5

154.5

105

69

355.9

356.7

EBIT Margin (%)

26.8

22.1

37.9

28.9

25.8

Net inc/(exp)

6.6

5.0

5.3

(20)

28.3

22.8

(19)

Associates

2.5

3.2

7.1

122

184

12.3

17.9

46

Exceptionals

(1.4)

(39.7)

(22.3)

(44)

1,493

7.3

(97.1)

(1430)

Pretax profit

98.9

44.0

144.6

229

46

403.8

300.3

(26)

Pretax Margin (%)

29.1

12.9

35.5

32.7

21.7

(12.6)

(16.3)

(36.2)

(69.4)

(44.2)

12.8

37.1

25.0

17.2

14.7

0.7

8.8

(3.4)

(139)

(606)

4.5

11.4

n.m.

Net profit

87.0

36.5

105.0

188

21

339.0

267.5

(21)

Core net profit

88.4

76.2

127.3

67

44

331.7

364.6

10

Net Profit Margin (%)

26.0

22.3

31.2

26.9

26.3

EPS (sen)

11.5

4.8

13.8

189

21

31.6

16.2

(49)

6.2

33.0

0.0

(100)

(100)

3.2

35.8

1024

Plantation

Property devt
Others

Taxation
Effective tax rate (%)

Minority interest

Net DPS

122

187

Comments
15% y-o-y fall in CPO
average price, 14% drop in
PK average price offset by a
10% y-o-y rise in FFB
production
MYR85m recorded from sale
of industrial land in 1Q13
Relating to biodiesel sales
from
its
200,000-tonne
biodiesel plant

Y-o-y margin fell due to

lower CPO prices
MYR20m profit recognition
from sale of industrial land in
1Q13

FY13 EI includes MYR35m

donated
to
Yayasan
Gemilang
1
Malaysia
(MYR31m from plantation
division and MYR4m from
property
division),
MYR61.9m unrealised forex
loss on debt and MYR0.3m
asset write-off
Filtered down from EBIT and
EI loss

(36)

Filtered down from PBT and

lower effective tax rate

3Q13 net DPS reflects

special interim cash dividend
announced at end-Aug and
restricted
warrant
reinvestment
plan.
No
dividend
announced
for
4Q13

Source: Company data, RHB estimates

See important disclosures at the end of this report

Genting Plantations (GENP MK)

27 February 2014
Figure 2: Operational stats
FYE Dec (MYRm)

4QFY12

3QFY13

4QFY13

q-o-q
(%)

y-o-y
(%)

FY12

FY13

y-o-y
(%)

Average CPO price

(MYR/tonne)
Average PK price
(MYR/tonne)
FFB Prodtn ('000 t)

2,219

2,353

2,505

13

2,784

2,378

(15)

1,097

1,313

1,548

18

41

1,543

1,324

(14)

460

386

466

21

1,392

1,526

10

Comments

185,000
tonnes
from
Indonesia in FY13. Excluding
Indonesian
production,
Malaysias FFB production
rose 2% y-o-y

Source: Company data, RHB estimates

Figure 3: Forecast assumptions

Dec-11

Dec-12

1,372

1,473

1,620

1,821

2,096

275

293

315

339

380

66

70

69

69

71

Average CPO price (MYR/t)

3,240

2,784

2,292

2,552

2,712

Average PK price (MYR/t)

2,235

1,543

1,230

1,705

1,705

FFB Produced (000 t)

CPO Production (000 t)
PK Production (000 t)

Dec-13 Dec-14F Dec-15F

Source: RHB estimates

Figure 4: SOP valuation

Plantation earnings
Property earnings
SOP (MYRm)

Valuation basis

FV (MYRm)

18x CY14 earnings

6,004.7

RNAV

2,490.2
8,494.9

SOP/share (MYR)

11.19

Shares (m)

758.85

Source: RHB estimates

See important disclosures at the end of this report

Genting Plantations (GENP MK)

27 February 2014

Financial Exhibits
Profit & Loss (MYRm)
Total turnover

Dec-11

Dec-12

Dec-13

Dec-14F

Dec-15F

1,336

1,233

1,384

1,555

1,795

Cost of sales

(605)

(682)

(858)

(899)

(962)

Gross profit

732

552

526

656

832

Gen & admin expenses

(72)

(66)

(74)

(83)

(96)

Selling expenses

(61)

(57)

(64)

(71)

(82)

Other operating costs

(33)

(73)

(32)

(36)

(41)

Operating profit

565

356

357

465

612

Operating EBITDA

609

412

424

545

700

Depreciation of fixed assets

(44)

(56)

(68)

(80)

(88)

Operating EBIT

565

356

357

465

612

Net income from investments

12

18

12

12

Interest income

26

32

28

18

10

Interest expense

(2)

(4)

(5)

(5)

(97)

601

404

300

491

630

(159)

(82)

(80)

(118)

(158)

Exceptional income - net

Pre-tax profit
Taxation
Minority interests

(1)

(4)
-

Profit after tax & minorities

442

327

228

371

(2)

466

(7)

Reported net profit

442

327

228

371

466

Recurring net profit

438

321

299

371

466

Dec-11

Dec-12

Dec-13

Dec-14F

Dec-15F

565

356

357

465

612

Depreciation & amortisation

44

56

68

80

88

Change in working capital

81

(84)

14

(269)

(47)

Source: Company data, RHB estimates

Cash flow (MYRm)

Operating profit

Other operating cash flow

16

(25)

695

344

414

276

653

Interest received

26

32

28

18

10

Interest paid

(2)

(4)

(5)

(5)

(4)

(157)

(149)

(76)

(85)

(155)

Operating cash flow

Tax paid
Cash flow from operations

561

224

360

205

504

Capex

(253)

(332)

(423)

(400)

(400)

Other investing cash flow

(125)

(64)

(5)

(57)

(68)

Cash flow from investing activities

(378)

(396)

(428)

(457)

(468)

(73)

(92)

(319)

(24)

(91)

(0)

(0)

181

Dividends paid
Proceeds from issue of shares
Increase in debt

162

216

106

Other financing cash flow

(12)

(17)

(21)

78

106

(52)

(186)

(91)

756

1,017

951

831

393

(66)

(120)

(438)

(56)

951

831

393

337

Cash flow from financing activities

Cash at beginning of period
Total cash generated
Implied cash at end of period

261
1,016

(161)
-

Source: Company data, RHB estimates

See important disclosures at the end of this report

Genting Plantations (GENP MK)

27 February 2014

Financial Exhibits
Balance Sheet (MYRm)

Dec-11

Dec-12

Dec-13

Dec-14F

Dec-15F

1,017

951

831

393

337

Inventories

129

127

89

328

353

Accounts receivable

113

161

234

263

303

Other current assets

148

228

244

261

264

1,407

1,468

1,398

1,244

1,258

Total cash and equivalents

Total current assets

Total investments

156

159

180

192

204

2,339

2,892

3,036

3,356

3,669

Intangible assets

187

174

163

163

163

Total other assets

17

32

78

78

78

Total non-current assets

2,699

3,256

3,457

3,789

4,113

Total assets

4,106

4,724

4,854

5,033

5,371

202

258

311

326

349

Tangible fixed assets

Short-term debt
Accounts payable
Other current liabilities

29

13

45

48

Total current liabilities

231

264

330

378

403

Total long-term debt

427

703

861

700

700

96

104

59

59

59

Total non-current liabilities

523

807

920

759

759

Total liabilities

754

1,071

1,251

1,137

1,162

Share capital

379

379

379

379

379

2,747

2,980

2,849

3,138

3,445

Other liabilities

Retained earnings reserve

Other reserves
Shareholders' equity
Minority interests
Other equity

107

64

198

198

198

3,234

3,424

3,426

3,716

4,022

118

229

178

180

187

(0)

Total equity

3,352

3,653

3,604

3,896

4,209

Total liabilities & equity

4,106

4,724

4,854

5,033

5,371

Source: Company data, RHB estimates

Key Ratios (MYR)

Dec-11

Dec-12

Dec-13

Dec-14F

Dec-15F

Revenue growth (%)

35.2

(7.7)

12.2

12.4

15.4

Operating profit growth (%)

37.9

(37.0)

0.2

30.5

31.5

Net profit growth (%)

36.3

(26.0)

(30.3)

62.7

25.7

EPS growth (%)

41.1

(26.0)

(30.3)

62.7

25.7

Bv per share growth (%)

12.7

5.9

0.1

8.5

8.3

Operating margin (%)

42.3

28.9

25.8

29.9

34.1

Net profit margin (%)

33.1

26.5

16.5

23.8

26.0

Return on average assets (%)

11.6

7.4

4.8

7.5

9.0

Return on average equity (%)

14.5

9.8

6.7

10.4

12.0

Net debt to equity (%)

(17.6)

(6.8)

1.0

8.0

8.8

DPS

0.12

0.09

0.36

0.11

0.14

Recurrent cash flow per share

0.74

0.30

0.47

0.27

0.66

Source: Company data, RHB estimates

See important disclosures at the end of this report

Genting Plantations (GENP MK)

27 February 2014

SWOT Analysis
Good reputation in marketplace as an efficient planter

New rules and

regulations
governing
landbank
acquisition or
expansion in
Indonesia could
limit future longterm growth

Its strategy of consistently planting up new areas has

ensured stable production growth from trees coming
into maturity every year

Continued
scrutiny of the
palm oil industry
by the
environmental
groups could
have a negative
effect on the
company

Given its stable

operating cash
flow, GP has
the capability of
expanding its
landbank via
acquisitions and
M&As, if
opportunities
arise.

High concentration of its plantation land in Sabah,

Malaysia means any extreme weather conditions
there may significantly affect productivity
Having no downstream operations in Indonesia, GP
becomes highly dependent on local refiners

P/E (x) vs EPS growth

P/BV (x) vs ROAE

10

-10%

-25%

-40%

P/E (x) (lhs)

EPS growth (rhs)

Source: Company data, RHB estimates

2.0

11%

1.5

8%

1.0

5%

0.5

3%

0.0

0%

P/B (x) (lhs)

Jan-15

5%

13%

Jan-14

20%

15

2.5

Jan-13

20

16%

Jan-12

35%

3.0

Jan-11

25

Jan-15

50%

Jan-14

30

Jan-13

65%

Jan-12

80%

35

Jan-11

40

Return on average equity (rhs)

Source: Company data, RHB estimates

Company Profile
Genting Plantations is a 53.6%-owned subsidiary of the Genting group. It has 261,000 ha of plantation landbank, of which close to
200,000ha is in Indonesia. It also has property development projects in Johor, Melaka and Kedah. The group has also invested
significantly in biotechnology via the use of genomics to raise productivity and sustainability.

See important disclosures at the end of this report

Genting Plantations (GENP MK)

27 February 2014

Recommendation Chart
Price Close
11.0

10.9

10.3

8.9

8.6

9.3
9.3

10

9.5

7.7
8.6

9.9

Neutral

7.7

Buy
3
Feb-09

11

9.7

6.1

Recommendations & Target Price

NR

12

8
7
6
5
4
Jun-10

Sell

Trading Buy

Sep-11

Take Profit

Not Rated

Dec-12

Source: RHB estimates, Bloomberg

Date

Recommendation

2014-02-10

Neutral

Target Price Price

11.0

10.1

2013-12-12

Neutral

10.9

11.1

2013-11-28

Neutral

10.3

10.9

2013-08-30

Trading Buy

9.3

9.5

2013-08-29

Neutral

9.3

8.9

2013-05-30

Neutral

9.5

9.0

2013-05-20

Neutral

8.9

8.8

2013-03-12

neutral

8.6

9.0

2013-03-07

neutral

8.6

8.9

2013-02-28

neutral

8.6

8.5

Source : RHB estimates, Bloomberg

See important disclosures at the end of this report

RHB Guide to Investment Ratings

Buy: Share price may exceed 10% over the next 12 months
Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain
Neutral: Share price may fall within the range of +/- 10% over the next 12 months
Take Profit: Target price has been attained. Look to accumulate at lower levels
Sell: Share price may fall by more than 10% over the next 12 months
Not Rated: Stock is not within regular research coverage

Disclosure & Disclaimer

All research is based on material compiled from data considered to be reliable at the time of writing, but RHB does not make any representation or
warranty, express or implied, as to its accuracy, completeness or correctness. No part of this report is to be construed as an offer or solicitation of an offer
to transact any securities or financial instruments whether referred to herein or otherwise. This report is general in nature and has been prepared for
information purposes only. It is intended for circulation to the clients of RHB and its related companies. Any recommendation contained in this report does
not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This report is for the
information of addressees only and is not to be taken in substitution for the exercise of judgment by addressees, who should obtain separate legal or
financial advice to independently evaluate the particular investments and strategies.
This report may further consist of, whether in whole or in part, summaries, research, compilations, extracts or analysis that has been prepared by RHBs
strategic, joint venture and/or business partners. No representation or warranty (express or implied) is given as to the accuracy or completeness of such
information and accordingly investors should make their own informed decisions before relying on the same.
RHB, its affiliates and related companies, their respective directors, associates, connected parties and/or employees may own or have positions in
securities of the company(ies) covered in this research report or any securities related thereto, and may from time to time add to, or dispose off, or may be
materially interested in any such securities. Further, RHB, its affiliates and related companies do and seek to do business with the company(ies) covered
in this research report and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies),
may sell them or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory or
underwriting services for or relating to such company(ies), as well as solicit such investment, advisory or other services from any entity mentioned in this
research report.
RHB and its employees and/or agents do not accept any liability, be it directly, indirectly or consequential losses, loss of profits or damages that may arise
from any reliance based on this report or further communication given in relation to this report, including where such losses, loss of profits or damages are
alleged to have arisen due to the contents of such report or communication being perceived as defamatory in nature.
The term RHB shall denote where applicable, the relevant entity distributing the report in the particular jurisdiction mentioned specifically herein below
and shall refer to RHB Research Institute Sdn Bhd, its holding company, affiliates, subsidiaries and related companies.

All Rights Reserved. This report is for the use of intended recipients only and may not be reproduced, distributed or published for any purpose without prior
consent of RHB and RHB accepts no liability whatsoever for the actions of third parties in this respect.
Malaysia
This report is published and distributed in Malaysia by RHB Research Institute Sdn Bhd (233327-M), Level 11, Tower One, RHB Centre, Jalan Tun Razak,
50400 Kuala Lumpur, a wholly-owned subsidiary of RHB Investment Bank Berhad (RHBIB), which in turn is a wholly-owned subsidiary of RHB Capital
Berhad.
Singapore
This report is published and distributed in Singapore by DMG & Partners Research Pte Ltd (Reg. No. 200808705N), a wholly-owned subsidiary of DMG &
Partners Securities Pte Ltd, a joint venture between Deutsche Asia Pacific Holdings Pte Ltd (a subsidiary of Deutsche Bank Group) and OSK Investment
Bank Berhad, Malaysia which have since merged into RHB Investment Bank Berhad (the merged entity is referred to as RHBIB, which in turn is a whollyowned subsidiary of RHB Capital Berhad). DMG & Partners Securities Pte Ltd is a Member of the Singapore Exchange Securities Trading Limited. DMG &
Partners Securities Pte Ltd may have received compensation from the company covered in this report for its corporate finance or its dealing activities; this
report is therefore classified as a non-independent report.
As of 26 February 2014, DMG & Partners Securities Pte Ltd and its subsidiaries, including DMG & Partners Research Pte Ltd do not have proprietary
positions in the securities covered in this report, except for:
a)
As of 26 February 2014, none of the analysts who covered the securities in this report has an interest in such securities, except for:
a)
Special Distribution by RHB
Where the research report is produced by an RHB entity (excluding DMG & Partners Research Pte Ltd) and distributed in Singapore, it is only distributed
to "Institutional Investors", "Expert Investors" or "Accredited Investors" as defined in the Securities and Futures Act, CAP. 289 of Singapore. If you are not
an "Institutional Investor", "Expert Investor" or "Accredited Investor", this research report is not intended for you and you should disregard this research
report in its entirety. In respect of any matters arising from, or in connection with this research report, you are to contact our Singapore Office, DMG &
Partners Securities Pte Ltd
Hong Kong
This report is published and distributed in Hong Kong by RHB OSK Securities Hong Kong Limited (RHBSHK) (formerly known as OSK Securities Hong
Kong Limited), a subsidiary of OSK Investment Bank Berhad, Malaysia which have since merged into RHB Investment Bank Berhad (the merged entity is
referred to as RHBIB), which in turn is a wholly-owned subsidiary of RHB Capital Berhad.
8

RHBSHK, RHBIB and/or other affiliates may beneficially own a total of 1% or more of any class of common equity securities of the subject company.
RHBSHK, RHBIB and/or other affiliates may, within the past 12 months, have received compensation and/or within the next 3 months seek to obtain
compensation for investment banking services from the subject company.
Risk Disclosure Statements
The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that
losses will be incurred rather than profit made as a result of buying and selling securities. Past performance is not a guide to future performance. RHBSHK
does not maintain a predetermined schedule for publication of research and will not necessarily update this report
Indonesia
This report is published and distributed in Indonesia by PT RHB OSK Securities Indonesia (formerly known as PT OSK Nusadana Securities Indonesia), a
subsidiary of OSK Investment Bank Berhad, Malaysia, which have since merged into RHB Investment Bank Berhad, which in turn is a wholly-owned
subsidiary of RHB Capital Berhad.
Thailand
This report is published and distributed in Thailand by RHB OSK Securities (Thailand) PCL (formerly known as OSK Securities (Thailand) PCL), a
subsidiary of OSK Investment Bank Berhad, Malaysia, which have since merged into RHB Investment Bank Berhad, which in turn is a wholly-owned
subsidiary of RHB Capital Berhad.
Other Jurisdictions
In any other jurisdictions, this report is intended to be distributed to qualified, accredited and professional investors, in compliance with the law and
regulations of the jurisdictions.
DMG & Partners Research Guide to Investment Ratings
Kuala Lumpur

Hong Kong

Singapore

Malaysia
Tel : +(60) 3 9280 2185
Fax : +(60) 3 9284 8693

19 Des Voeux Road

Central, Hong Kong
Tel : +(852) 2525 1118
Fax : +(852) 2810 0908

Tel : +(65) 6533 1818

Fax : +(65) 6532 6211

Buy: Share price may exceed 10% over the next 12 months
Trading Buy:Malaysia
Share price
may exceed 15% over theRHB
nextOSK
3 months,
however longer-term outlook remains uncertain
Research Office
Securities Hong Kong Ltd. (formerly known
DMG & Partners
Neutral: Share
mayInstitute
fall within
months
as 12
OSK
Securities
Securities Pte. Ltd.
RHB price
Research
Sdn the
Bhdrange of +/- 10% over the next
Take Profit:
Target
price One,
has RHB
beenCentre
attained. Look to accumulate at lower
Honglevels
Kong Ltd.)
Level
11, Tower
10 Collyer Quay
Sell: Share price may
more than 10% over the next 12 months
Jalanfall
TunbyRazak
12th Floor
#09-08 Ocean Financial Centre
Lumpur
World-Wide House
Singapore 049315
Not Rated: Stock isKuala
not within
regular research coverage

DISCLAIMERS

Phnom
Penh
This research is issuedJakarta
by DMG & Partners Research Pte Ltd and it is forShanghai
general distribution only. It does not have any regard
to the
specific investment
objectives, financial situation and particular needs of any specific recipient of this research report. You should independently evaluate particular
PT RHB OSK and
Securities
Indonesia
(formerlyfinancial
known asadviser
RHB
OSK (China)
Advisory
Ltd. into any
RHBtransaction
OSK Indochina
Securities
Limited
(formerly
investments
consult
an independent
before
makingInvestment
any investments
or Co.
entering
in relation
to any
securities
or
PT OSKmentioned
Nusadana in this report.
(formerly known as OSK (China) Investment
known as OSK Indochina Securities Limited)
investment instruments
Securities Indonesia)
Plaza CIMB Niaga

Advisory Co. Ltd.)

Suite 4005, CITIC Square

No. 1-3, Street 271

Sangkat Toeuk Thla, Khan Sen Sok

Tel : +(6221) 2598 6888

Tel : +(8621) 6288 9611

Fax: +(855) 23 969 171

The information contained

herein has been obtained from sources 1168
we believed
to be reliable but we do not make any representation
or warranty nor
14th Floor
Nanjing West Road
Phnom Penh
accept any responsibility
or liability
as to its accuracy, completeness orShanghai
correctness.
are subject to change
Jl. Jend. Sudirman
Kav.25
20041Opinions and views expressed in this report
Cambodia
without notice.
Jakarta Selatan 12920, Indonesia
China
Tel: +(855) 23 969 161
Fax
: +(6221)
2598or6777
Faxof: +(8621)
6288
9633or sell any securities.
This report does
not
constitute
form part of any offer or solicitation
any offer
to buy
Bangkok

DMG & Partners Research Pte Ltd is a wholly-owned subsidiary of DMG & Partners Securities Pte Ltd, a joint venture between OSK Investment Bank
Berhad, Malaysia which have since merged into RHBRHB
Investment
Bank Berhad (the merged entity is referred to as RHBIB which in turn is a whollyOSK Securities (Thailand) PCL (formerly known
owned subsidiary of RHB Capital Berhad) and Deutsche Asiaas
Pacific
Holdings Pte
Ltd (a PCL)
subsidiary of Deutsche Bank Group). DMG & Partners Securities
OSK Securities
(Thailand)
Pte Ltd is a Member of the Singapore Exchange Securities Trading
Limited.
10th Floor,
Sathorn Square Office Tower
98, North Sathorn Road,Silom
Bangkok 10500
DMG & Partners Securities Pte Ltd and their associates, directors,Bangrak,
and/or employees
may have positions in, and may effect transactions in the securities
Thailand
covered in the report, and may also perform or seek to perform broking and
other corporate finance related services for the corporations whose securities
Tel: +(66) 2 862report.
9999
are covered in the report. This report is therefore classified as a non-independent
Fax : +(66) 2 108 0999

As of 26 February 2014, DMG & Partners Securities Pte Ltd and its subsidiaries, including DMG & Partners Research Pte Ltd, do not have proprietary
positions in the subject companies, except for:
a)
As of 26 February 2014, none of the analysts who covered the stock in this report has an interest in the subject companies covered in this report, except
for:
a)
DMG & Partners Research Pte. Ltd. (Reg. No. 200808705N)