PP16795/03/2013(031743) Dec-16

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1 Thursday, 14 December, 2017 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Research Team PP16795/03/2013(031743) Corporate News MK Land set to sell off RM362.9m worth of unsold units over 2 years Yong Tai taps Beijing Olympic director to boost sales Kejuruteraan Asastera sees better year in 2018, bags RM14.5m job Binasat to raise RM39.55m, says listing on Jan 8, 2018 National Housing Policy 2.0 in final phase Economic News OPEC says oil goal is close as stockpile glut shrinks further With rate hike in the bag, Fed may hint at Trump effect on economy China's property price rally to stall in 2018 as small city boom wanes Singapore economy forecast to grow by 3.3% for 2017 Philippine c.bank reviewing 12 applications for bitcoin exchange Bursa Malaysia Close Chg +/- Chg % YTD Chg (%) FBMKLCI 1, FBMEMAS 12, FBM100 12, FBMEMAS Shariah 12, FBM Hijrah Shariah 13, Volume (m) 2, Value (MYR m) 2, KLCI Performance KLCI Year-End Target: 1,790 points Regional Indices Commodities (Last Close) Close Chg +/- Chg % YTD Chg (%) Close Chg +/- Chg % DJIA 24, Brent Crude (USD/bbl) NASDAQ 6, WTI Crude (USD/bbl) S&P 500 2, CPO (RM/MT) 2, FTSE 100 7, Gold (USD/ounce) 1, Nikkei , Latex (sen/kg) HSI 29, Soybean Oil SHCOMP 3, KOSPI 2, Forex TWSE 10, (per USD) BIMB (YE Forecast) Close Chg +/- Chg % STI 3, MYR JCI 6, JPY SET 1, EUR PSEi 8, SGD

2 Major Rates Daily Participation Market Insight % Participation Bought Sold Net KLIBOR 3-mth 3.43 (%) (MYR m) (MYR m) (MYR m) KLIBOR 6-mth 3.56 Local Insti , , KLIBOR 12-mth 3.63 Local Retail yr MGS 3.64 Foreign yr MGS 3.97 Total , , Performance of BIMB Stock Coverage Top Gainers Source: Bank Negara Malaysia Top Losers Source: The Sun, BIMB Securities Close Chg +/- Chg % Close Chg +/- Chg % Prestariang TH Plantations Sarawak Plantation Datasonic GHL Gas Malaysia Hovid Westports Malakoff Dutch Lady

3 CORPORATE NEWS MK Land set to sell off RM362.9m worth of unsold units over 2 years MK Land will focus on selling off unsold units from its completed projects worth up to RM362.9m within the next 2 years. The bulk of the units are from the semi-detached Rafflesia development and Armanee Terrace condominium in Damansara Perdana, Petaling Jaya, as well as some units in Residensi Suasana in Damansara Damai and Meru Perdana in Ipoh. MK Land is also in the planning phase to develop affordable housing namely the Rumah Selangorku in Taman Bunga Raya, Bukit Beruntung and in Bandar Baru Gunung Semanggol in Bukit Merah, Perak, for which Mohanachandran expects construction works to start in early 2019, pending respective approvals. (Source: The Edge) Yong Tai taps Beijing Olympic director to boost sales Yong Tai expects a Zhang Yimou theater project to boost profit when it opens next year, helping to counter the cyclical real-estate business and an indefinite government freeze on luxury property sales. The show in the state of Malacca could improve earnings by RM60m (USD14.7m) in a full year of operations. Yong Tai will start staging the show in the 2Q next year once construction of the theater is completed as part of a 138-acre development fronting the Malacca Straits. Developers in Malaysia are adjusting to a government decision last month to indefinitely halt new approvals of luxury condominiums, offices and malls to address a market glut and protect the banking system from excessive risks. For Yong Tai, the freeze justifies its strategy to diversify its business into the tourism sector. (Source: The Edge) Kejuruteraan Asastera sees better year in 2018, bags RM14.5m job Kejuruteraan Asastera has bagged a RM14.5m subcontract from Kerjaya Prospek (M) SB to undertake electrical and telephone services works for a luxury condominium project here. KAB has received a LoA from Kerjaya Prospek to act as the latter's nominated subcontractor for the proposed project, which involves the installation, testing and commissioning of electrical systems, as well as telephone and telecommunications infrastructure. KAB is expected to commence work on Jan 8, 2018, with completion on May 24, The proposed project is expected to contribute positively to the group's future earnings for the duration of the contract. (Source: The Edge) National Housing Policy 2.0 in final phase The National Housing Policy (DRN) 2.0 for is in the final phase of preparation. The DRN would be a continuation of the existing DRN for DRN 2.0 is formulated comprehensively with regard to improvements, including new housing industry challenges such as the provision of transit homes for the M40 youth category, design and regulation of the latest housing prices. DRN 2.0 would involve cooperation from Khazanah and state governments. Meanwhile, the ministry was also in the final stages of the development of the Housing Data Bank System portal, which is expected to be accessible from next year. The portal will share stocks and sales of homes under the bumiputera quota housing units available in the property market. (Source: The Edge) Binasat to raise RM39.55m, says listing on Jan 8, 2018 Binasat aims to raise RM39.55m from its IPO of new shares to finance the telecommunication support service provider's expansion. In its prospectus its tentative listing date is Jan 8, The group offers support services for satellite, mobile and fibre optic telecommunication networks. Its planned expansion includes setting up a teleport and overseas expansion in Laos, Myanmar and Vietnam. The amount of RM14.36m will be used to finance the teleport project while RM10.79m will be used for working capital. The group has also allocated RM1.5m to expand into Laos, Myanmar and Vietnam. (Source: The Edge) 3

4 ECONOMIC NEWS OPEC says oil goal is close as stockpile glut shrinks further OPEC is near its goal of rebalancing the oil market as an inventory overhang targeted by its output curbs continues to shrink. The stockpile glut including crude as well as oil products has shrunk to 130m barrels above the 5-year average. The group last month estimated the overhang at about 154m barrels. That s a sign that the Organization of Petroleum Exporting Countries and its allies, including Russia are progressing in their efforts to curb production and end an oversupply that has weighed on prices and battered their economies since The group plans to meet in June to assess the market and consider halting the cuts, which they agreed last month to extend until the end of next year. (Source: Bloomberg) With rate hike in the bag, Fed may hint at Trump effect on economy The Federal Reserve is widely expected to raise interest rates on Wednesday, but, more significantly, it may give its strongest hint yet on how the Trump administration's tax overhaul could affect the US economy. The Fed's policy statement and its latest economic projections are due to be released at 2pm EST (1900 GMT) following the end of a 2-day meeting. Fed Chair Janet Yellen is scheduled to hold a press conference half an hour later. It will be her last before her 4-year term ends early next year. The Fed has increased rates twice in 2017 and is currently expected to push through three more hikes next year. (Source: Reuters) China's property price rally to stall in 2018 as small city boom wanes China's home price growth is likely to stall in 2018 as a surprise boom in smaller cities is expected to lose steam while measures to tighten credit and other property curbs continue to constrain the market. China has imposed an array of measures to crack down on property speculation since early 2016, but prices in October still crept up 5.4% from a year earlier, largely driven by a buying frenzy that has spread from the big metropolises to the country's less-regulated smaller centres. A softening but still resilient property market in the year ahead, underpinned by steady prices, would be welcome news for China's policymakers, who are keen to keep the market still a vital source of growth for the economy stable, as they ramp up efforts to tackle an alarming build-up in debt. (Source: Reuters) Singapore economy forecast to grow by 3.3% for 2017 Singapore s economy grew stronger than expected in 3Q17. The Singapore economy expanded by 5.2% in 3Q17 ended Sept compared with the same period last year. This was higher than the median forecast of 3.1% reported in Sep 2017 Survey. In addition, the respondents ecpect GDP growth to come in at 3.3% in 2017, an upgrade from the 2.5% median forecast in the previous survey. 4Q17 GDP is projected to expand by 2.6% with CPI-all items inflation and MAS core inflation expected to come in at 0.4% and 1.5% respectively. (Source: The Edge) Philippine c.bank reviewing 12 applications for bitcoin exchange The Philippine central bank is evaluating 12 applications for the registration of virtual currency (VC) exchanges after it issued permits to 2 firms earlier this year, but it is not endorsing cryptocurrencies, including bitcoin. The use of bitcoin for remitting money to the Philippines, one of the world's biggest recipients of cash sent home by its citizens working abroad, has risen dramatically, prompting the central bank to issue guidelines for VC exchanges. A VC exchange is an entity that facilitates the conversion or exchange of fiat currency to virtual currency, or vice versa. The Bangko Sentral ng Pilipinas (BSP) is seeking to regulate the industry which is open to misuse. (Source: Reuters) 4

5 ECONOMIC CALENDAR Date Time Country Event Period Survey Actual Prior Revised 12/14/ :00 US FOMC Rate Decision (Upper Bound) Dec % 1.50% 1.25% -- 12/14/ :00 US FOMC Rate Decision (Lower Bound) Dec % 1.25% 1.00% -- 12/14/ :30 JN Nikkei Japan PMI Mfg Dec P /14/ :00 CH Industrial Production YoY Nov 6.10% % -- 12/14/ :00 CH Industrial Production YTD YoY Nov 6.60% % -- 12/14/ :30 JN Industrial Production MoM Oct F % -- 12/14/ :30 JN Industrial Production YoY Oct F % -- 12/14/ :30 JN Capacity Utilization MoM Oct % -- 12/14/ :30 NE Trade Balance Oct b -- 12/14/ :00 LN Current Account Balance Oct m -- 12/14/ :00 CZ Current Account Monthly CZK Oct 3.20b b -- 12/14/ :00 UK Bank of England Bank Rate Dec % % -- 12/14/ :00 UK BOE Asset Purchase Target Dec 435b b -- 12/14/ :00 UK BOE Corporate Bond Target Dec 10b -- 10b -- 12/14/ :45 EC ECB Main Refinancing Rate Dec % % -- 12/14/ :45 EC ECB Marginal Lending Facility Dec % % -- 12/14/ :45 EC ECB Deposit Facility Rate Dec % % -- 12/14/ :00 PD Current Account Balance Oct 210m m -- 12/14/ :00 PD Trade Balance Oct 480m m -- 12/14/ :00 PD Exports Oct 18100m m -- 12/14/ :00 PD Imports Oct 17400m m -- 12/14/ :30 US Import Price Index MoM Nov 0.70% % -- 12/14/ :30 US Import Price Index ex Petroleum MoM Nov 0.10% % -- 12/14/ :30 US Import Price Index YoY Nov 3.20% % -- 12/14/ :30 US Export Price Index MoM Nov 0.30% % -- 12/14/ :30 US Export Price Index YoY Nov % -- 12/14/ :45 US Markit US Manufacturing PMI Dec P /14/ :45 US Markit US Services PMI Dec P /14/ :45 US Markit US Composite PMI Dec P /15/ :00 FI Current Account Balance Oct b -- 12/15/ :00 EC Trade Balance SA Oct 24.3b b -- 12/15/ :00 EC Trade Balance NSA Oct b -- 12/15/ :00 IR Trade Balance Oct m -- 12/15/ :00 IR Current Account Balance 3Q m -- 12/15/ :00 BE Trade Balance Oct m -- 12/18/ :50 JN Trade Balance Nov b 284.6b 12/18/ :50 JN Trade Balance Adjusted Nov b -- 12/18/ :50 JN Exports YoY Nov % -- 12/18/ :50 JN Imports YoY Nov % -- 12/18/ :00 CZ Export Price Index YoY Oct % -- 12/18/ :00 CZ Import Price Index YoY Oct % -- 12/18/ :00 IT Trade Balance EU Oct /18/ :00 IT Trade Balance Total Oct /18/2017 CH FX Net Settlement - Clients CNY Nov b -- 12/19/ :00 HU Central Bank Rate Decision Dec % % -- 12/19/ :00 PD Sold Industrial Output MoM Nov -1.30% % -- 12/19/ :00 PD Sold Industrial Output YoY Nov 9.00% % -- 12/19/ :00 PD Construction Output YoY Nov 14.10% % -- 12/19/ :00 HU Overnight Deposit Rate Dec % % -- 12/19/ :30 US Current Account Balance 3Q $123.1b -- 12/20/ :30 SW Riksbank Interest Rate Dec %

6 DEFINITION OF RATINGS BIMB Securities uses the following rating system: STOCK RECOMMENDATION BUY Total return (price appreciation plus dividend yield) is expected to exceed 10 in the next 12 months. TRADING BUY Share price may exceed 15 over the next 3 months, however longer-term outlook remains uncertain. HOLD Share price may fall within the range of +/- 10 over the next 12 months TAKE PROFIT Target price has been attained. Fundamentals remain intact. Look to accumulate at lower levels. TRADING SELL Share price may fall by more than 15 in the next 3 months. SELL Share price may fall by more than 10 over the next 12 months. NOT RATED Stock is not within regular research coverage. SECTOR RECOMMENDATION OVERWEIGHT The Industry as defined by the analyst s coverage universe, is expected to outperform the relevant primary market index over the next 12 months NEUTRAL The Industry as defined by the analyst s coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months UNDERWEIGHT The Industry as defined by the analyst s coverage universe, is expected to underperform the relevant primary market index over the next 12 months Applicability of ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies. Disclaimer The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of BIMB Securities Sdn may from time to time have a position in or either the securities mentioned herein. Members of the BIMB and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgements as of this date and are subject to change without notice. BIMB Securities Sdn accepts no liability for any direct, indirect or consequential loss arising from use of this report. Printed and published by BIMB SECURITIES SB ( X) A Participating Organisation of Bursa Malaysia Securities Level 32, Menara Multi Purpose, Capital Square, No. 8 Jalan Munshi Abdullah, Kuala Lumpur Tel: Fax: Azharuddin Nordin Head of Research 6