Today s Highlights. Quick bites. Outside Malaysia. Company Update Lafarge Malaysia (SELL, downgrade) - A tough year

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1 Today s Highlights Company Update Lafarge Malaysia (SELL, downgrade) - A tough year Results Note MPI (HOLD, maintain) - 1QFY17 dips, but it s not a suprise Economy US Election - Uncertainty over Trump Presidency on global trade Quick bites WCT Holdings Wins RM896.4m MRT Line 2 package SP Setia Wins tender for 1,675-acre land in Penang for RM620m IOI Properties Submitted S$2.57bn bid for Singapore land Outside Malaysia US stocks surge as banks, drugmakers rally amid Trump victory ECB signals vigilance on policy as Trump win shocks investors ECB s Knot says Trump election lead marks globalization doubts Trade set to boost UK economic growth in the third quarter RBNZ s Wheeler says easing probably over as economy booms China s factory prices quicken as drag on global inflation eases Thailand holds key rate amid market turmoil, growth risks Oil advances as Trump seen pursuing business-friendly policies Bursa M alaysia KLCI 52-wk range M kt Cap (RM bn) 1, Vol (m shrs) 2, Value (RMm) 2, KLCI futures (spot) 1, KLCI futures (1-mth) 1, KLCI Index (12-mth) Oct 15 Jan 16 Apr 16 Jul 16 Oct 16 Top 4 Gainers Price (RM ) chg (RM ) % chg FAREAST EKOVEST HLIND M UHIBAH TONGHER Top 5 Losers Price (RM ) chg (RM ) % chg BAT (0.44) (0.91) TAHPS 6.75 (0.35) (4.93) AEONCR (0.34) (2.37) CHINTEK 7.60 (0.30) (3.80) DLADY (0.30) (0.51) Top 5 Value Traded Price (RM ) chg (RM ) Val (RM m) TENAGA (0.04) PB B A NK ( 0.12 ) CIMB 4.80 (0.06) SIME 8.20 (0.11) PCHEM 6.91 (0.04) Key Equit y Indices Close % chg Ytd chg (%) KLCI (1.0) (2.7) Other Markets Key Indicators COMMODITIES CURRENCIES Latest chg (%) Latest Ytd chg (%) CPO (RM/Tonne) RM/US$ Spot (Jan) 2, RM per 100 Yen 4.01 (10.8) 3-mth futures (Mar) 2, RM/S$ Yen/US$ Brent Crude Oil (US$/brl) Eur/US$ 0.92 (0.5) Spot RM/AUD 3.24 (3.2) 1-mth futures MALAYSIA INTEREST RATES Latest Ytd chg (bps) Gold (US$/oz) OPR (%) 3.00 (25.0) Spot (0.1) 3-mth Klibor (%) 3.40 (44.0) 1-mth futures (0.1) Maybank BR (%) *as at 1 July 2016 Dow Jones Nasdaq FTSE East. Europe (7.0) M exico (2.2) 10.3 Shenzen B (0.6) (10.4) Shanghai B (0.6) (11.6) Hong Kong (2.2) 2.3 Korea (2.2) (0.1) Singapore (1.1) (3.2) Indonesia (1.0) 17.9 Philippines (2.6) 2.4 Thailand (0.0) 17.2 Vietnam (0.9) 15.8 India (1.2) 4.3 Taiwan (3.0) 7.3 Page 1 of 7

2 Quick Bites WCT Holdings: Wins RM896.4m MRT Line 2 package MRT Corp announced that WCT has won the V204 package for MRT Line 2 worth RM896.4m by beating five other tenderers. (Source: Financial Daily) Comments: This is positive as it will be WCT s maiden involvement in MRT construction, establishing a track record for future MRT projects. The contract will grow its order book to about RM5.7bn, equivalent to 4.5x FY15 construction revenue. Assuming PBT margin of 8%, the project is expected to contribute RM54.5m net profit over the construction period of 2-3 years. We have assumed WCT will secure RM1.5bn worth of new contracts this year and about RM1.42bn or 94% has been achieved yearto-date. We reiterate our BUY call with RM2.00 target price, based on 10% discount to RNAV. SP Setia: Wins tender for 1,675-acre land in Penang for RM620m SP Setia announced that it has won the tender for 1,675-acre land in Seberang Perai Utara, Penang, for a purchase price of RM620.1m. The land is about 18km from Butterworth and 32 km to Penang Bridge. Potential gross development value (GDV) is RM9.6bn over years. (Source: Bursa Malaysia) Comments: This forms part of SP Setia long-term plan to grow its land bank for new township developments. Gross land price of RM8.50 psf is reasonable considering the land is in a suburban area. Financing is not a problem as the group plans to issue redeemable convertible preference shares of up to RM1.07bn to fund its expansion. We maintain our earnings and RNAV estimate for now. We have a HOLD call on SP Setia with target price of RM3.25, based on 30% discount to RNAV. IOI Properties: Submitted S$2.57bn bid for Singapore land IOI Properties announced that it has submitted a S$2.57bn (RM7.6bn) bid for a 1.07ha leasehold land in Central Boulevard to Singapore s Urban Redevelopment Authority. (Source: Bursa Malaysia) Comments: It was reported that IOI Properties submitted a bid at a record price for the piece of prime office land in Singapore. This raises concerns on the potential long-term returns on the development. Its low net gearing of 0.16x will support its expansion plan in Singapore. We maintain our BUY call with RM2.44 target price, based on 40% discount to RNAV. Page 2 of 7

3 Outside Malaysia US stocks surge as banks, drugmakers rally amid Trump victory US stocks rose in heavy trading, as shares of banks to heavy equipment manufacturers rallied amid speculation Donald Trump will pursue business-friendly policies. The S&P 500 Index rose 1.1% to 2, The Dow Jones Industrial Average climbed points (1.4%) to 18, ECB signals vigilance on policy as Trump win shocks investors European Central Bank (ECB) officials responded cautiously to the election of Donald Trump as US President, suggesting that their accommodative policy stance won t change imminently despite turbulence on global markets. The ECB is closely monitoring the situation as usual, and usually what we do is look through volatility of course for the first days, Executive Board member Peter Praet said. ECB s Knot says Trump election lead marks globalization doubts European Central Bank Governing Council member Klaas Knot said the likely victory of Donald Trump in the US presidential election reflects skepticism over globalization, and expressed concern over the fallout in financial markets. He also said there is a lot of uncertainty about Trump s economic plans. Trade set to boost UK economic growth in the third quarter The deficit in goods and services narrowed to 11bn (US$13.7bn) in 3Q16 from 12.7bn in 2Q16, the office for National Statistics said. Trade, traditionally a weak spot, is forecast to help the economy through a Brexitinduced slowdown next year as the falling pound makes exports more competitive. Growth was a stronger-than-expected 0.5% in 3Q16, and net trade probably made a small positive contribution, the ONS said. RBNZ s Wheeler says easing probably over as economy booms New Zealand s central bank cut interest rates to a fresh record low at 1.75% from 2% and said it has probably done enough to return inflation to target as the economy booms. At this stage we think that we won t need another cut, RBNZ s Wheeler said. He left the door ajar to further action if needed, saying numerous uncertainties remain, particularly in respect of the international outlook, and policy may need to adjust accordingly. China s factory prices quicken as drag on global inflation eases China s factory-gate inflation picked up further last month while consumer prices accelerated, suggesting government efforts to reduce overcapacity have gained some traction and alleviating a source of global disinflationary pressure. Consumer-price index increased 2.1%, matching the gain forecast by analysts. Thailand holds key rate amid market turmoil, growth risks Thailand held its key rate for a 12th meeting, preserving its firepower as growth risks mount following the death of King Bhumibol Adulyadej and heightened market turmoil in the aftermath of the US elections. The Bank of Thailand (BOT) kept its one-day bond repurchase rate at 1.5%, with monetary policy committee members voting unanimously in favor, it said. Oil advances as Trump seen pursuing business-friendly policies Oil climbed as global markets weighed the implications of Republican Donald Trump s election as the 45th US president. Brent for January settlement climbed US$0.32 (0.7%) to US$46.36 a barrel. Source: Bloomberg (Lim Yee Ping; ; yeeping.lim@affinhwang.com) Page 3 of 7

4 Market Summary Table 1: Off Market transactions Shares Price (RM) Vol (m) Val (RMm) Type* DSTN D MRC D IGB D IBHD D Source: Bloomberg Table 2: Shares Buyback/ Resale Company* Date Units Treasury Transaction SUNWAY 9-Nov 128,500 29,135,000 Shares Buyback * Only FBM100 Component Stocks Source : Bursa Malaysia Table 3: ESOS Company* Date Units Transaction * Only FBM100 Component Stocks Table 4: Entitlements Company Entitlement Ex-Date Lodgement Payment PRTASCO Bonus Issue 22-Nov 24-Nov - Source : Bursa Malaysia Page 4 of 7

5 Fig 5: Shareholding change Substantial Shareholder Date Transaction Units Company EPF 4-Nov-16 Acquired 85,600 AEON EPF 4-Nov-16 Acquired 632,000 AIRPORT EPF 2 to 3-Nov-16 Acquired 3,300,000 AXIATA Amanah Raya Trustees 4-Nov-16 Disposed 100,000 BIMB Amanah Raya Trustees 4 to 7-Nov-16 Acquired 4,566,700 CMMT EPF 3 to 4-Nov-16 Acquired 2,092,900 DIALOG Amanah Raya Trustees 7-Nov-16 Acquired 398,000 DIGI EPF 4-Nov-16 Acquired 1,940,400 DIGI EPF 3 to 4-Nov-16 Acquired 67,300 F&N Amanah Raya Trustees 4-Nov-16 Acquired 29,500 F&N EPF 3 to 4-Nov-16 Acquired 592,100 GENP EPF 4-Nov-16 Acquired 1,000,000 HARTA EPF 3-Nov-16 Disposed 890,200 HARTA EPF 4-Nov-16 Acquired 263,700 HLBANK EPF 4-Nov-16 Acquired 960,400 IGBREIT EPF 4-Nov-16 Acquired 9,700 IHH EPF 4-Nov-16 Disposed 99,800 IHH Amanah Raya Trustees 4-Nov-16 Disposed 439,500 IJM EPF 4-Nov-16 Disposed 154,400 IJM EPF 4-Nov-16 Acquired 1,864,900 IOICORP EPF 4-Nov-16 Acquired 76,500 IOIPG EPF 4-Nov-16 Acquired 397,300 KLK EPF 2 to 4-Nov-16 Acquired 249,300 KOSSAN EPF 2 to 3-Nov-16 Disposed 173,300 KOSSAN EPF 3 to 4-Nov-16 Acquired 5,904,100 MAXIS EPF 4-Nov-16 Acquired 1,458,100 MISC EPF 4-Nov-16 Acquired 13,000 NESTLE EPF 4-Nov-16 Disposed 43,200 NESTLE EPF 4-Nov-16 Acquired 2,756,100 PBBANK EPF 4-Nov-16 Disposed 813,100 PBBANK EPF 4-Nov-16 Acquired 3,000,000 PCHEM EPF 4-Nov-16 Disposed 493,000 PETGAS EPF 4-Nov-16 Acquired 108,800 POS EPF 4-Nov-16 Disposed 255,300 POS EPF 4-Nov-16 Acquired 77,200 PPB EPF 4-Nov-16 Acquired 362,100 SIME Amanah Raya Trustees 4-Nov-16 Acquired 1,578,800 SIME EPF 4-Nov-16 Disposed 3,000,000 SIME Amanah Raya Trustees 7-Nov-16 Disposed 2,500,000 SIME EPF 3-Nov-16 Acquired 88,850 SKPETRO EPF 3 to 4-Nov-16 Acquired 196,400 TAKAFUL EPF 3 to 4-Nov-16 Acquired 1,098,000 TENAGA EPF 3 to 4-Nov-16 Disposed 1,068,200 TENAGA Amanah Raya Trustees 7-Nov-16 Disposed 7,000,000 TENAGA EPF 4-Nov-16 Acquired 1,946,000 TM Amanah Raya Trustees 4 to 7-Nov-16 Acquired 3,412,200 TM EPF 4-Nov-16 Acquired 1,000,000 TOPGLOV EPF 4-Nov-16 Disposed 591,700 WPRTS EPF 1 to 4-Nov-16 Acquired 700,000 YINSON EPF 4-Nov-16 Disposed 255,700 YINSON EPF 4-Nov-16 Acquired 3,000,000 YTL Source: Bursa Malaysia Page 5 of 7

6 Fig 6: Dividend Entitlement Stocks Particulars DPS (sen) Announce Ex-Date Lodge Payment NESTLE Second Interim Dividend Oct Nov Nov-16 2-Dec-16 PLENITU Final Dividend Oct Nov Nov Nov-16 ATTA Special Dividend Oct Nov Nov Dec-16 ATTA Second Interim Dividend Oct Nov Nov Dec-16 SIME Final Dividend Nov Nov Nov Dec-16 KLCC Interim Dividend Nov Nov Nov Dec-16 KLCC Income Distribution Nov Nov Nov Dec-16 PETGAS Interim Dividend Nov Nov Nov-16 2-Dec-16 SCICOM Interim Dividend Nov Nov Nov-16 7-Dec-16 HEXZA Final Dividend Oct Nov Nov-16 8-Dec-16 TEOSENG Interim Dividend Nov Nov Nov Nov-16 PETDAG Interim Dividend Nov Nov Nov-16 8-Dec-16 GUOCO Final Dividend Oct Nov Nov-16 8-Dec-16 HLIND First Interim Dividend Nov Nov Nov-16 8-Dec-16 POHUAT Interim Dividend Sep Nov Nov Dec-16 MPI First Interim Dividend Nov Nov Nov-16 9-Dec-16 TEKSENG Interim Dividend Oct Nov Nov Dec-16 ECS Interim Dividend Nov Nov Nov Dec-16 SUPERMX Final Dividend Oct Nov Nov Dec-16 BONIA Final Dividend Oct Nov Nov Dec-16 GLOMAC Final Dividend Aug Nov Nov-16 8-Dec-16 MAXIS Interim Dividend Oct Nov Nov Dec-16 NHFATT Interim Dividend Nov Nov Nov Dec-16 DIGI Interim Dividend Oct Nov-16 1-Dec Dec-16 MALTON First and Final Dividend Oct Nov-16 1-Dec Dec-16 PANTECH Second Interim Dividend Oct Nov-16 1-Dec Dec-16 TGL Final Dividend Oct Nov-16 1-Dec Dec-16 CHEETAH First and Final Dividend Oct Nov-16 2-Dec Dec-16 DIALOG Final Dividend Oct Nov-16 2-Dec Dec-16 HWANG Final Dividend Nov Nov-16 2-Dec Dec-16 KAREX Final Dividend Oct-16 1-Dec-16 5-Dec Dec-16 KLUANG First and Final Dividend Oct-16 1-Dec-16 5-Dec Dec-16 KUCHAI First and Final Dividend Oct-16 1-Dec-16 5-Dec Dec-16 SBAGAN First and Final Dividend Oct-16 1-Dec-16 5-Dec Dec-16 ARANK First and Final Dividend Nov-16 6-Dec-16 8-Dec Dec-16 FIBON Final Dividend Sep-16 6-Dec-16 8-Dec Dec-16 SLP Second Interim Dividend Nov-16 6-Dec-16 8-Dec Dec-16 UNISEM Interim Dividend Nov-16 6-Dec-16 8-Dec-16 6-Jan-17 DAIMAN First and Final Dividend Aug-16 7-Dec-16 9-Dec Dec-16 HARTA First Interim Dividend Nov-16 7-Dec-16 3-Dec Dec-16 PECCA Final Dividend Oct-16 7-Dec-16 9-Dec Dec-16 APOLLO First and Final Dividend Jun-16 8-Dec Dec-16 9-Jan-17 LATITUD First and Final Dividend Sep Dec Dec Jan-17 PENSONI Final Dividend Sep Dec Dec Dec-16 AWC Final Dividend Oct Dec Dec Jan-17 SIGN Final Dividend Oct Dec Dec-16 9-Jan-17 YOCB Final Dividend Oct Dec Dec Jan-17 PTARAS Final Dividend Sep Dec Dec Jan-17 CHEEWAH First and Final Dividend Oct Dec Dec-16 9-Jan-17 SCIENTX Final Dividend Sep Dec Dec Jan-17 IMASPRO First and Final Dividend Oct Dec-16 4-Jan Jan-17 FACBIND Final Dividend Oct-16 3-Jan-17 5-Jan Jan-17 KESM Final Dividend Oct-16 6-Jan Jan Jan-17 BENALEC Final Dividend Oct Jan Jan Feb-17 Source: Bursa Malaysia Page 6 of 7

7 Equity Rating Structure and Definitions BUY Total return is expected to exceed +10% over a 12-month period HOLD Total return is expected to be between -5% and +10% over a 12-month period SELL Total return is expected to be below -5% over a 12-month period NOT RATED Affin Hwang Investment Bank Berhad does not provide research coverage or rating for this company. Report is intended as information only and not as a recommendation The total expected return is defined as the percentage upside/downside to our target price plus the net dividend yield over the next 12 months. OVERWEIGHT Industry, as defined by the analyst s coverage universe, is expected to outperform the KLCI benchmark over the next 12 months NEUTRAL Industry, as defined by the analyst s coverage universe, is expected to perform inline with the KLCI benchmark over the next 12 months UNDERWEIGHT Industry, as defined by the analyst s coverage universe is expected to under-perform the KLCI benchmark over the next 12 months This report is intended for information purposes only and has been prepared by Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) ( the Company ) based on sources believed to be reliable. However, such sources have not been independently verified by the Company, and as such the Company does not give any guarantee, representation or warranty (express or implied) as to the adequacy, accuracy, reliability or completeness of the information and/or opinion provided or rendered in this report. Facts, information, views and/or opinion presented in this report have not been reviewed by, may not reflect information known to, and may present a differing view expressed by other business units within the Company, including investment banking personnel. Reports issued by the Company, are prepared in accordance with the Company s policies for managing conflicts of interest arising as a result of publication and distribution of investment research reports. Under no circumstances shall the Company, its associates and/or any person related to it be liable in any manner whatsoever for any consequences (including but are not limited to any direct, indirect or consequential losses, loss of profit and damages) arising from the use of or reliance on the information and/or opinion provided or rendered in this report. Any opinions or estimates in this report are that of the Company, as of this date and subject to change without prior notice. Under no circumstances shall this report be construed as an offer to sell or a solicitation of an offer to buy any securities. The Company and/or any of its directors and/or employees may have an interest in the securities mentioned therein. The Company may also make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. Comments and recommendations stated here rely on the individual opinions of the ones providing these comments and recommendations. These opinions may not fit to your financial status, risk and return preferences and hence an independent evaluation is essential. Investors are advised to independently evaluate particular investments and strategies and to seek independent financial, legal and other advice on the information and/or opinion contained in this report before investing or participating in any of the securities or investment strategies or transactions discussed in this report. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. The Company s research, or any portion thereof may not be reprinted, sold or redistributed without the consent of the Company. The Company, is a participant of the Capital Market Development Fund-Bursa Research Scheme, and will receive compensation for the participation. This report is printed and published by: Affin Hwang Investment Bank Berhad (14389-U) (formerly known as HwangDBS Investment Bank Berhad) A Participating Organisation of Bursa Malaysia Securities Bhd Chulan Tower Branch, 3rd Floor, Chulan Tower, No 3, Jalan Conlay, Kuala Lumpur. research@affinhwang.com Tel : Fax : Page 7 of 7