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1 PUBLIC INVESTMENT BANK PublicInvest Research IPO Note Monday, December 19, 2016 KDN PP17686/03/2013(032117) FOUNDPAC GROUP BERHAD Fair Value: RM0.63 DESCRIPTION In A Growing Phase FoundPac Group Bhd designs, develops, manufactures, markets and sells precision engineering parts. The company offers stiffeners, test sockets, hand lids, and related accessories. FoundPac Group serves semiconductor manufacturers and OSATs, or for PCB design houses and fabless semiconductor companies. Fair Value RM0.63 IPO Price RM0.54 Expected Return 16.7% Closing Application Date Retail 19 December 2016 Indicative Listing Date 29 December 2016 Market Main Sector Technology Bursa Code 5277 Bloomberg Ticker FPG MK IPO DETAILS Shares(m) Offer for Sale 92.0 Public Issue 40.0 UTILISATION OF PROCEEDS RM (m) Purchase of property, plant and equipment 8.0 Overseas expansion 4.0 Working capital 3.6 Design & development expenditure 3.0 Estimated listing expenses 3.0 Total 21.6 KEY STOCK DATA Market Capitalisation (RM m) No. of Shares (m) MAJOR SHAREHOLDERS % FoundPac Holdings 64.3 FoundPac Group Bhd (FoundPac) is scheduled for listing on 29 th December FoundPac commenced its operations in the trading of precision engineering parts in May Over the years, FoundPac has expanded into design, development and manufacturing activities, serving semiconductor companies based in North America, Europe and Asia. The group aims to grow its production capacity through acquisition of new machines, diversify its customer base to include end-user industries and establish more sales offices in overseas markets. FoundPac has a clean balance sheet with a net cash of RM20m. Proceeds from the public offering will mainly be utilized for capital expenditure and working capital purposes. We value FoundPac at RM0.63, pegging it at 13x FY18F earnings. Our fair value implies a potential upside of 17%. Business overview. FoundPac commenced its operations in the trading of precision engineering parts such as stiffeners, test sockets and hand lids and conversion kits in May Later it expanded into design, development and manufacturing activities. The group derives over 95% of its sales from the export markets, serving established electronic companies based in North America, Europe and Asia. Its worldwide multinational customers include Qualcomm, Broadcom, Kobe, Synergie and NXP. Future plans. The group intends to expand its production capacity through acquisition of new machines from 16 currently to 25. In addition, it plans to diversify its customer base to include end-user industries in order to expand earnings stream as well as reduce the risk of depending on one particular industry. Automotive sector has been identified as one of the potential areas for expansion. FoundPac will continue to grow its export markets by establishing more sales offices in Europe and US. Key risks. (1) Highly dependent on a major customer, Broadcom, which accounted for almost 50% of total revenue (2) reliance on major suppliers i.e. ADE accounted for 38% of total purchases (3) failure to meet growing demand could lead to the group losing existing customers and (4) Foreign exchange risk as it is an export-oriented business. Fair value of RM0.63 is based on 13x FY18F EPS of 4.9sen, which implies an upside of 17% from its IPO price of RM0.54. Our FY18F earnings growth is supported by i) improved utilization rate on stronger demand and ii) higher production capacity Research Team T F E research@publicinvestbank.com.my KEY FINANCIAL SUMMARY FYE Jun (RM m) 2014A 2015A 2016A 2017F 2018F CAGR Revenue % Gross Profit % Pre-tax Profit % Net Profit % EPS (Sen) % P/E (x) DPS (Sen) Dividend Yield (%) Source: Company, PublicInvestResearch estimates Pro Forma financial information from company prospectus 1 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 1 of 12

2 Company Overview FoundPac Group Sdn Bhd was incorporated in Malaysia on 16 November 2015 as a private limited company as a listing vehicle. It was then converted into a public limited company and assumed FoundPac Group Bhd. as its present name on 11 March It is principally involved in the design, development, manufacturing, marketing and sale of precision engineering parts namely stiffeners, test sockets, hand lids and related accessories. These precision engineering parts, which are used to facilitate the testing of Integrated Circuit (ICs), are sold to semiconductor manufacturers and Outsourced Semiconductor Assembly and Test Companies (OSATs), or for Printed Circuit Board (PCB) design houses and fabless semiconductor companies. History of FBSB. FoundPac Sdn Bhd (FPSB) was incorporated in Malaysia on 13 December 2004 and principally involved in the trading of precision engineering parts such as stiffeners, test sockets, hand lids and conversion kits. After Lee Chun Wah, who is now a qualified engineer with over twenty years of experience in the electronics and semiconductor industry with a Master s degree in Mechatronics, joining FPSB in January 2006 and then having him appointed as Chief Executive Officer (CEO) in April 2006, FPSB ventured into the manufacturing of precision parts. Tan Sin Khoon, who is now an electrical engineer with more than twenty-three years of experience in the electronics and semiconductor business, joined the FPSB as Operations cum Business Director in July 2007 and was subsequently promoted to as Chief Operating Officer (COO) in January Following an internal restructuring exercise to streamline the corporate structure so that a clear segregation is achieved between business activities, FPSB ceased its business operations and became an investment holding company since 1 September History of FoundPac Tech. FoundPac Technologies Sdn Bhd (FoundPac Tech), which was incorporated in Malaysia on 11 April 2011 as a private limited company, commenced its business operations since 1 September 2011 to undertake the business of the design, development, manufacturing, marketing and sale of precision engineering parts. Establishment of FoundPac Group Bhd. FoundPac Group Sdn Bhd entered into the FPSB share sale agreement and FoundPac Tech share sale agreement to acquire 100% equity interest in FPSB and FoundPac Tech respectively on 16 February The acquisition of both entities was completed on the same day. Consequently, FPSB and FoundPac Tech became wholly-owned subsidiary companies of FoundPac Group Bhd, after conversion of latter into a public limited company. Both Executive Directors Lee Chun Wah and Tan Sin Khoon, who is also CEO and COO for the group respectively, play key roles in product development besides providing strategic direction and operations management. Figure 1: Company Structure Source: Company Prospectus, PublicInvest Research Table 1: FoundPac s Subsidiaries and Principal Activities Name FPSB FoundPac Tech Source: Company Prospectus Principal Activities Investment holding company Design, development, manufacture, marketing and sale of stiffener, test sockets, hand lids and related accessories 2 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 2 of 12

3 Table 2: Corporate Milestones Year Achievement 2004 Incorporation of FPSB 2005 FPSB commenced business in the trading of precision engineering parts such as stiffeners, test sockets, hand lids and conversion kits 2006 FPSB moved operations to Lengkok Kampung Jawa 2 FPSB expanded business to manufacturing of stiffeners, test sockets and hand lids 2007 FPSB received the ISO 9001:2000 certifications from SGS United Kingdom Ltd and SGS (Malaysia) Sdn. Bhd. for the Design and Fabrication of Precision Engineering Manufacturing 2010 FPSB moved operations to Bayan Lepas Non-Free Industrial Zone Phase IV FPSB received the ISO 9001:2008 certification from SGS United Kingdom Ltd and SGS (Malaysia) Sdn. Bhd. for the Design and Fabrication of Precision Engineering Manufacturing and the Provision of Dimensional Measurement Service 2011 Incorporation of FoundPac Tech FoundPac Tech commenced business to undertake the design, development, manufacturing, marketing and sale of precision engineering parts FPSB became an investment holding company holding the Group s factory premises FoundPac Tech received the ISO 9001:2008 certification from SGS United Kingdom Ltd and SGS (Malaysia) Sdn. Bhd. for the Design and Fabrication of Precision Engineering Manufacturing and the Provision of Dimensional Measurement Service 2013 FoundPac Tech renewed the ISO 9001:2008 certification from SGS United Kingdom Ltd and SGS (Malaysia) Sdn. Bhd. for the Design and Fabrication of Precision Engineering Manufacturing and the Provision of Dimensional Measurement Service 2016 FoundPac Tech has received the ISO 9001:2015 certifications from SGS United Kingdom Ltd and SGS (Malaysia) Sdn. Bhd. for the Design and Fabrication of Precision Engineering Manufacturing and the Provision of Dimensional Measurement Service The certifications are valid until August 2019 Source: Company Prospectus Business Overview FoundPac Group Bhd (FoundPac) is principally involved in the design, development, manufacturing, marketing and sale of precision engineering parts such as stiffeners, test sockets and hand lids to customers in the semiconductor industry. The products are primarily manufactured using aluminium, stainless steel and engineering plastics. Thus far, there aren t any material shortages or major fluctuations in prices in sourcing these materials. Currently, some of the fabrication works are outsourced to local and international fabricators, in instances of lack of capacity or in short of the machines to carry out the required fabrication. Figure 2: Illustration of Products Source: Company Prospectus 3 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 3 of 12

4 Advantest and Teradyne are some third party brands that may be used on the group's stiffeners and accessories for stiffeners whereas Broadcom Corporation and Synergie CAD are some third party brands that may be used on the group's test sockets, hand lids, and accessories for test sockets. The choice of brand to be sold to customers depends on customers request and there is no difference in pricing and margins between the different choices of brands. For FY14 to FY16, export business collectively generated 94.46%, 95.48% and 97.09% of the group's total revenue, with US being principal market which contributed 68.86%, 70.79% and 76.28% respectively towards total revenue. Figure 3: Segmental Revenue of the Group Source: Company Prospectus, PublicInvest Research ration o f sales channels The group secure orders for their products directly from semiconductor manufacturers and/or OSATs, or from PCB design houses, fabless semiconductor companies and channel partners (which include precision engineering component manufacturers and electronic component trading companies) for onward supply to semiconductor manufacturers and/or OSATs. The group also secures orders from their channel partners especially in Europe who play the role as a sales representative by assisting to secure sales for the group. The channel partners consist of companies only and are not confined to Europe. 4 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 4 of 12

5 Figure 4: Illustration of Sales Channels Source: Company Prospectus Future Plans Expansion in production capacity through the acquisition of machines. The group intends to increase production capacity as well as fabrication capabilities through the acquisition of nine machines incorporated with computer numerical controls (CNC), two coordinate-measuring machines (CMMs) and one grinding machine. The additional machines are expected to increase production capacity and reduce outsourcing of fabrication work which will enable more aggressive expansion, bringing the group to the next phase of growth to strengthen local and global footprint, as well as penetration into new geographical markets. Setup of dedicated D&D team. The group plans to set up a dedicated design and development (D&D) team that focuses on product development primarily. Establishment of the dedicated team enables the group to remain at the forefront of industry technologies, manufacturing processes and market trends, providing a strong foundation for long term growth and sustainability. Diversification of customer base into other end-user industries. As part of sector diversification, the group intends to manufacture products that cater to other end-user industries (such as the automotive industry) within the next two years by leveraging on their expertise to undertake the mechanical fabrication of metal automotive components and parts. Intention to establish sales offices abroad. The group has identified the relevant locations for the set-up of its sales office which are in Milan, Italy and California, US and begun making relevant enquiries about them in order to further capitalise on opportunities of global electronics and semiconductor industry. 5 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 5 of 12

6 Competitive Strengths and Opportunities Large multinational semiconductor players as main customers. The group's customers comprise multinational semiconductor manufacturers, OSATs and PCB design houses, which include, amongst others, Broadcom Corporation, Qualcomm Technologies, Inc and Synergie CAD Group. The product quality, customer service and proven industry track record help retaining Broadcom Corporation, Qualcomm Technologies, Inc and Synergie CAD Group for elevan, four and nine years respectively. Ability to comply with the design and manufacturing requirements. The group has received the ISO 9001:2015 certification from SGS United Kingdom Ltd and SGS (Malaysia) Sdn. Bhd. for the Design and Fabrication of Precision Engineering Manufacturing and Provision of Dimensional Measurement Service. The accreditations, which serve as a testimony that the group is able to comply with strict design and manufacturing requirements of multinational customers, are valid until August Well-established network of channel partners in Europe. The group has close partnerships with various channel partners in Europe such as Synergie CAD Group of companies in Europe, U4Global Solutions Ltd and Systems & Technology International. By leveraging on the customer networks of channel partners, the group is better positioned to extend their end-user customer reach in Europe and incur minimal sales and distribution cost. Growth in the global electronics and semiconductor industry. The precision engineering part industry in Malaysia is a niche and specialist industry within the broader electronics, semiconductor and PCB industry. The precision engineering part industry in Malaysia grew from RM35.76m in 2011 to RM132.51m in 2015, at a CAGR of 38.74%. The group s global market share in relation to the equipment segment of the global semiconductor industry in 2015 was 0.02%, based on its revenue of RM34.37m in the FY15, computed against the global revenue from the equipment segment of the semiconductor industry of USD37.00bn (RM144.57bn) in (Source: IMR Report) Industry Outlook Precision engineering is dependent on semiconductor industry. The precision engineering part industry grows in tandem with the electronics, semiconductor and printed circuit board (PCB) industry as it is an engineering support industry to the semiconductor industry. The precision engineering part industry size in Malaysia grew from RM35.76m in 2011 to RM132.51m in 2015, at a CAGR of 38.74%. The growth of the precision engineering part industry is expected to be driven by the continued demand for electronic products, which are supported by the importance of electronic products in multiple industries as well as rapid technological advancements in the electronics and semiconductor industries. Figure 5: Precision Engineering Part Industry Size (Malaysia) 6 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 6 of 12

7 Notes: 1. The precision engineering part industry size has been computed based on identified local industry players involved in the design, development and manufacturing of stiffeners, test sockets and hand lids (as listed in Chapter 5 The Precision Engineering Part Industry in Malaysia (Competitive Landscape). 2. Latest available data is as at 2015 as 2015 is the latest year where financial information of the identified industry players are available. Source: Companies Commission of Malaysia ( CCM ), PublicInvest Research Global demand growth. FoundPac s global market share in relation to the equipment segment of the global semiconductor industry in 2015 was 0.02%, based on its revenue of RM34.37m in the FY15, computed against the global revenue from the equipment segment of the semiconductor industry of USD37.00bn (RM144.57bn) in Overall, the global semiconductor industry registered a CAGR of 7.73% between the period 1990 and 2015, indicating the sustainability of the industry s growth in the long term. The global semiconductor industry is forecast to grow from USD337.70bn (RM1.32trn) in 2016 to reach USD bn (RM1.47trn) in 2018, registering a CAGR of 5.60% during the period. Figure 6: Semiconductor Sales (Global) Source: Smith Zander, Company Prospectus Figure 7: Value Chain of Electronics and Semiconductor Industries Notes: 1. Industry segment in which FoundPac Group Berhad is principally involved in. 2. Companies involved in the above value chain may have overlapping principal activities and thus, may have multiple roles in the semiconductor value chain. 3. Although precision engineering part suppliers products are used by OSAT companies to facilitate their testing services, precision engineering part suppliers may also sell these products to IDMs, fabless and fad-lite companies, for onward supply to the OSAT company. Source: Smith Zander, Company Prospectus Key Risks Dependence of major customer. Broadcom has been its major customer for the past 3 years from FY14 to FY16. The loss of Broadcom Corporation as its major customer, if not replaced, may adversely affect its financial results as this major customer accounted for approximately 46%, 48% and 48% of the total revenue of the group for the FY14, FY15 and FY16 respectively. In such circumstances, if FoundPac is not able to immediately market its products and services to other potential customers, it may not be able to achieve the same profit margins that it achieved in the past. 7 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 7 of 12

8 Dependence on suppliers. FoundPac relies heavily on its key suppliers namely ADE Technology, Gaffoglio and Innovative Semicon, which accounted for 38%, 6.9% and 6.1% of FY16 total purchases respectively. However, these suppliers are of fabrication services which are widely available from local and international suppliers. Foreign exchange risk. FoundPac serves customers worldwide, with over 94.0% of sales derived from the oversea market for the past 3 years. Therefore the group is exposed to foreign exchange risk as part of its sales and purchases are transacted in foreign currencies. Moving forward, the group expects to derive more revenue denominated in USD and Euro in view of its growing presence in the overseas markets. Any significant fluctuations in exchange rates, particularly the USD and Euro, may have a significant impact, whether positively or negatively, on the revenue and earnings of the group. Failure to meet demand for its products. The growth in the global semiconductor market is dependent on the global demand for electronic products. If the market for electronics and semiconductors were to suddenly expand, FoundPac would require significant increases in production capabilities, including personnel, supplies and raw materials, to fully capitalise on such expansions in demand. The failure to adjust to such unanticipated increases in demand for its products could result in the group losing existing customers and market share. Tax consideration. FoundPac Tech had enjoyed tax incentive under the Pioneer Status for 70.0% tax exemption on statutory income for the past 5 years for the production of test socket, hand lid, stiffener and related components pursuant to the Pioneer Status granted by MITI on 1 Sept The Pioneer Status had expired on 31 Aug 2016 as FoundPac Tech did not qualify for the renewal which was based on the income generated from the existing products of FoundPac Tech. In this regard, the taxable income generated by FoundPac Tech is subject to the prevailing statutory tax rate i.e 24.0% going forward. Financials Past 3 years revenue and profit trend. FoundPac s revenue and net profit recorded a CAGR of 20.8% and 33.6% respectively in the past 3 years. This was mainly led by higher demand for its products, growth in the electronics and semiconductor industry as well as the strengthening of USD against RM. Figure 8: Revenue and Net Profit Trend Source: Company Prospectus, PublicInvest Research Forecast. Based on its expansion plan, our earnings estimates have taken into account (i) higher tax rate, (ii) increase in production capacity, and (iii) growth from penetrating into other markets via its overseas expansion such as Milan, Italy and California, US. Expiry of Pioneer Status for 70.0% tax exemption on statutory income. Following the expiry of the Pioneer Status, the taxable income generated by FoundPac Tech is subject to the prevailing statutory tax rate, 24.0%. The higher 8 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 8 of 12

9 tax rate charged on the group s profit starting from FY17 is expected to drag FoundPac s profit margin going forward. Increasing production capacity. FoundPac intends to allocate approximately RM8m from the proceeds of the Public Issue to fund its acquisition of new equipment. The additional 9 CNC machines to be purchased from the proceeds of the Public Issue is expected to increase its production capacity for stiffeners by approximately 44%; and production capacity for test sockets and hand lids by approximately 70%. The increase in production capacity is expected to meet the expected increase in demand for its products, enabling it to expand aggressively by accepting more job orders. This is expected to increase the group s revenue and profit starting from the last quarter of FY17. Oversea expansion. By setting-up sales office in Milan, Italy and California, US in the next two years, FoundPac will be in closer geographical proximity to many potential customers. Therefore we estimates a 5% projected growth for its overseas expansion plan. Dividend. The Board intends to recommend and distribute a dividend of at least 30% of its annual profit after tax to its shareholders. There were no dividends declared and paid by the FoundPac Group in respect of FY16. Valuations We value FoundPac at RM0.63, ascribing 13x PER to FY18F earnings. We derive our PE multiple based a 20% discount to market s valuation on peers of 16x within the technology and semiconductor sector. We think the discount is fair given FoundPac s smaller market capitalization relative to peers. Our fair value implies a potential upside of 17% to its IPO price of RM0.54. Table 3: Peers Price Mkt EPS (sen) EPS Growth P/E (x) (RM)@ Cap (%) 15-Dec (RM m) 2017F 2018F 2017F 2018F 2017F 2018F Inari Amertron , Unisem M , Globetronics Technology Average , Source: Bloomberg, PublicInvest Research 9 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 9 of 12

10 IPO Details FoundPac is seeking a listing with an enlarged issued and paid-up shares capital of 40,000,000 shares with RM0.10 par value on Bursa Malaysia s Main Market. Pursuant to IPO listing, the company s market capitalization is RM198.8m based on its IPO price of RM0.54 and its enlarged issued and paid-up share capital of 370,000,000 shares. The IPO allocation, post-ipo share capital of FoundPac and utilisation of IPO proceeds are shown in the following tables. Table 4: IPO Allocation Categories No. of shares % of enlarged share capital Public issue: *Malaysian public 18,500, Eligible directors, employees and business associates 10,500, Private placement to identified investors 11,000, Sub-total 40,000, Offer for sale: Identified investors 55,000, Bumiputera investors 37,000, Sub-total 92,000, Total 132,000, Source: Company Prospectus, PublicInvest Research * via balloting Table 5: Post-IPO Share Capital No. of shares Authorised 500,000,000 Existing issued and fully paid-up share capital 238,000,000 New shares to be issued pursuant to the public issue 132,000,000 Enlarged share capital upon listing 370,000,000 Source: Company Prospectus, PublicInvest Research Table 6: Utilisation of IPO proceeds* Details of utilisation Timeframe for utilisation upon RM m % listing Purchase of property, plant and equipment Within 24 months Overseas expansion Within 24 months Working capital Within 24 months Design & development expenditure Within 24 months Estimated listing expenses Immediate Total Source: Company Prospectus, PublicInvest Research *based on RM0.54 for 40,000,000 new shares issued 10 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 10 of 12

11 KEY FINANCIAL DATA INCOME STATEMENT DATA FYE Jun (RM m) 2014A 2015A 2016A 2017F 2018F Revenue Gross Profit Finance Costs Pre-tax Profit Income Tax Effective Tax Rate (%) 8.1% 8.3% 6.6% 24.0% 24.0% Minorities Net Profit Growth Revenue - 14% 28% 18% 17% Gross Profit - 25% 31% 18% 14% Net Profit - 40% 27% -1% 12% Source: Company Prospectus, PublicInvest Research estimates BALANCE SHEET DATA FYE Jun (RM m) 2014A 2015A 2016A 2017F 2018F Property, Plant & Equipment Cash and Cash Equivalents Trade and Other Receivables Other Assets Total Assets Trade and Other Payables Borrowings Deferred tax Other Liabilities Total Liabilities Shareholders Equity Total Equity and Liabilities Source: Company Prospectus, PublicInvest Research estimates PER SHARE DATA & RATIOS FYE Jun 2014A 2015A 2016A 2017F 2018F Book Value Per Share NTA Per Share EPS (Sen) DPS (Sen) Payout Ratio 68% 81% 0% 30% 30% ROA 37% 40% 35% 20% 19% ROE 52% 56% 39% 23% 21% Source: Company Prospectus, PublicInvest Research estimates 11 Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 11 of 12

12 RATING CLASSIFICATION STOCKS OUTPERFORM NEUTRAL UNDERPERFORM TRADING BUY TRADING SELL NOT RATED The stock return is expected to exceed a relevant benchmark s total of 10% or higher over the next 12months. The stock return is expected to be within +/- 10% of a relevant benchmark s return over the next 12 months. The stock return is expected to be below a relevant benchmark s return by -10% over the next 12 months. The stock return is expected to exceed a relevant benchmark s return by 5% or higher over the next 3 months but the underlying fundamentals are not strong enough to warrant an Outperform call. The stock return is expected to be below a relevant benchmark s return by -5% or more over the next 3 months. The stock is not within regular research coverage. SECTOR OVERWEIGHT NEUTRAL UNDERWEIGHT The sector is expected to outperform a relevant benchmark over the next 12 months. The sector is expected to perform in line with a relevant benchmark over the next 12 months. The sector is expected to underperform a relevant benchmark over the next 12 months. DISCLAIMER This document has been prepared solely for information and private circulation only. It is for distribution under such circumstances as may be permitted by applicable law. The information contained herein is prepared from data and sources believed to be reliable at the time of issue of this document. The views/opinions expressed herein are subject to change without notice and solely reflects the personal views of the analyst(s) acting in his/her capacity as employee of Public Investment Bank Berhad ( PIVB ). PIVB does not make any guarantee, representations or warranty neither expressed or implied nor accepts any responsibility or liability as to its fairness liability adequacy, completeness or correctness of any such information and opinion contained herein. No reliance upon such statement or usage by the addressee/anyone shall give rise to any claim/liability for loss of damage against PIVB, Public Bank Berhad, its affiliates and related companies, directors, officers, connected persons/employees, associates or agents. This document is not and should not be construed or considered as an offer, recommendation, invitation or a solicitation of an offer to purchase or subscribe or sell any securities, related investments or financial instruments. Any recommendation in this document does not have regards to the specific investment objectives, financial situation, risk profile and particular needs of any specific persons who receive it. We encourage the addressee of this document to independently evaluate the merits of the information contained herein, consider their own investment objectives, financial situation, particular needs, risks and legal profiles, seek the advice of their, amongst others, tax, accounting, legal, business professionals and financial advisers before participating in any transaction in respect of any of the securities of the company(ies) covered in this document. PIVB, Public Bank Berhad, our affiliates and related companies, directors, officers, connected persons/employees, associates or agents may own or have positions in the securities of the company(ies) covered in this document or any securities related thereto and may from time to time add or dispose of, or may be materially interested in, any such securities. Further PIVB, Public Bank Berhad, our affiliates and related companies, associates or agents do and/or seek to do business with the company(ies) covered in this document and may from time to time act as market maker or have assumed an underwriting commitment in the securities of such company(ies), may sell them or buy them from customers on a principal basis, may have or intend to accommodate credit facilities or other banking services and may also perform or seek to perform 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 document. The analyst(s) and associate analyst(s) principally responsible for the preparation of this document may participate in the solicitation of businesses described aforesaid and would receive compensation based upon various factors, including the quality of research, investor client feedback, stock pickings and performance of his/her recommendation and competitive factors. Hence, the addressee or any persons reviewing this document should be aware of the foregoing, amongst others, may give rise to real or potential conflicts of interest. Published and printed by: PUBLIC INVESTMENT BANK BERHAD (20027-W) 9 th Floor, Bangunan Public Bank 6, Jalan Sultan Sulaiman Kuala Lumpur T F Dealing Line Important disclaimer is provided at the end of this report. PUBLIC INVESTMENT BANK Page 12 of 12