Market View, News in Brief: Corporate, Economy, and Share Buybacks. Chartist: Stephen Soo Tel:

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1 Thursday, June 14, 2018 FBMKLCI: 1, Daily Brief THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Market View, News in Brief: Corporate, Economy, and Share Buybacks Chartist: Stephen Soo Tel: Market View Blue Chips to Trend Lower After Fed s Hawkish Tone The FBM KLCI ended flat Wednesday, with many investors on the sidelines ahead of the extended weekend holiday to observe the Hari Raya Aidilfitri and in tandem with muted regional peers as investors await the conclusion of the Federal Reserve's monetary policy meeting. The KLCI inched down by 0.59 points to close at 1,763.57, off an early low of 1, and high of 1,764.50, as loser edged gainers 469 to 397 on moderate trade totaling 2.11bn shares worth RM2.02bn. Immediate support at 1,751, Resistance at 1,802 Blue chips are likely to trend lower following the more hawkish tone by the U.S. Federal Reserve and guidance for two more rate hikes for the year. Immediate supports for the index remains at the recent intra-day lows of 1,751, 1,738 and 1,725, with crucial support from the Dec 2017 low of 1,708. Immediate resistance stays at 1,802, last Thursday s high and matching the 50%FR of the Dec 2017 low of 1,708 to the April 2018 high of 1,896, followed by the 38.2%FR (1,824) and 23.6%FR (1,852). SELL Globetronic & Inari Hook down momentum indicators on Globetronic implies near-term correction potential towards the 30-day ma (RM2.14), with better supports from the 38.2%FR (RM2.07) and 23.6%FR (RM1.85). Resistance is seen at 61.8%FR (RM2.42). Similarly, Inari could also slide on bearish technical momentum towards the 30-day ma (RM2.10), with stronger support coming at lower Bollinger band (RM2.02). Immediate resistance is found at upper Bollinger band (RM2.45). Asian Markets Brace for Fed Decision Asian shares were broadly lower Wednesday, as investors looked to the US Federal Reserve policy decision and any clues it might give on future rate hikes, shifting focus away from the historic U.S.-North Korea summit in Singapore. With the U.S.-North Korea summit out of the way, market focus is quickly shifting to the Fed s two-day policy meeting ending on late Wednesday. The Fed is widely expected to raise interest rates for the second time this year after a move in March, but the bigger question for investors is the outlook of the Fed s future monetary tightening amid an ongoing economic expansion. Projections from the Fed s March meeting suggest a benchmark rate of 2.1 percent at end of 2018, based on the median forecast of central bank policymakers, which would mean three rate hikes in total this year. Japanese stocks edged higher, as shippers and real estate stocks led gains for the day, while automakers rose 0.93 percent. The Nikkei share average ended 0.4 percent higher to 22, In down under, the S&P/ASX 200 declined 0.51 percent to 6,023.50, with most sectors in negative territory. China stocks also ended lower on Wednesday, as a slump in shares of telecommunications giant ZTE Corp sent shivers through the market and on resurfaced China-U.S. trade tensions. The Shanghai Composite Index closed down 1 percent at 3, points. Markets in South Korea and Indonesia were closed for public holidays. Page 1 of 9

2 Wall Street Slips after Fed Hikes Rates, Points to 2 More Hikes US stocks fell after the Federal Reserve hiked interest rates and indicated that two more increases are likely this year. The Federal Reserve hiked interest rates 25 basis points after its June meeting as widely expected, but suggested two more increases are likely this year. According to the Fed's so-called dot plot, which tracks participant expectations for interest rates, members now expect four hikes this year, up from the three previously expected. The notion of a more aggressive Fed raised concerns about higher borrowing costs dragging on the economy and ultimately weighed on the market. The Fed changed several phrases from its prior memos, citing more optimistic economic growth and higher inflation expectations. Wednesday's increase in rates moves the funds target rate to 1.75 percent to 2 percent. The yield on the benchmark 10-year Treasury note briefly rose above 3 percent following the central bank's statement before retreating back to percent. Media and telecommunications stocks rose on Wednesday, stemming the market's loss, following a U.S. District Court's decision to allow AT&T's USD85 billion bid for Time Warner. While U.S. markets have remained comparatively calm over the past two weeks, stricter monetary policy from the Fed, as well as more hawkish commentary from the European Central Bank, appeared to stress certain debt-heavy economies like those of Italy and Brazil. The ECB will hold its policy meeting on Thursday. The Dow Jones Industrial Average fell points to finish at 25, as losses in Boeing and Caterpillar shares offset gains in shares of Walt Disney Company. The S&P 500 lost 0.4 percent to close at 2, with consumer discretionary the only positive sector. The Nasdaq composite rose to a new intraday high early in the session as media stocks rallied following a federal judge's decision to permit AT&T's bid for Time Warner. The tech-heavy index later dropped 0.11 percent to finish at 7, following the Fed's decision. Page 2 of 9

3 News In Brief Corporate Sime Darby Property Bhd (Sime Darby) has clarified that the site acquisition and the subsequent costs of the Battersea Power Station development were fully funded by a combination of equity from the shareholders, together with development loans. In a joint statement with SP Setia Bhd today, Sime Darby said that the loans were provided on commercial terms by a group of nine Malaysian and international lenders (Bernama). Gas Malaysia Bhd will revise upwards the natural gas tariff for the non-power sector in Peninsular Malaysia. The average natural gas Base Tariff would be set at RM31.92 per MMBtu for the six-month period beginning July 1 to Dec 31, A surcharge of RM0.77 per MMBtu will apply to all tariff categories (Bernama). AirAsia Group Bhd chief executive officer Tan Sri Tony Fernandes has lauded the government's move to base airport charges according to the facilities. Fernandes tweeted that airline passengers have not been charged fairly as facilities for different airports vary and thus charges for passengers should vary accordingly (StarBiz). Supermax Corp Bhd through its 70% owned Japan based subsidiary Aime Supermax KK has been granted the product license for its contact lenses by the Pharmaceutical and Medical Device Authority of Japan. The product license effectively enables the group via SuperVision Optimax Sdn Bhd to export the first Malaysian brand contact lens to Japan. (New Strait Times) Comment: We are positive on the news as the timing (4QFY18) of the product license is in-line with what management guided previously. To recap, Supermax production capacity for contact lens is around 70mn/annum. We note that Japan is the second largest market for contact lens after USA. We think it might take some time for them to penetrate into the market as it is a mature market with many available brands. Thus, we continue to believe its contact lens division will only be profitable in 2 years time. No changes to earnings estimates, maintain Buy on Supermax, TP of RM4.30/share. The Transport Ministry may revive the cash-for-clunkers programme, which is a cash rebate system to reduce the number of old cars on the road. The Ministry will need to consider various issues before rolling out the programme as it "could bring about many implications (The Edge). Petra Energy Bhd has received a one-year extension on its contract from Petronas Carigali Sdn Bhd for the provision of hook-up, commissioning and topside major maintenance services. The contract was previously awarded to Petra Energy by Petronas Carigali for a duration of five years from May 21, 2013 to May 20, The extension granted was from May 21, 2018 to May 20, 2019 (The Edge). The Inland Revenue Board (IRB) has appealed against a High Court order dismissing a RM26.33 mn tax claim against Mega First Corp Bhd. In October 2016, the IRB had sent notices to Mega First over additional taxes arising from the sale of a joint venture property in IRB argued the disposal was subject to income tax. It said the transaction was treated by IHSB as a capital transaction, which was liable to real property gains tax, and initiated legal proceedings against the company in February 2017 (The Edge). GFM Services Bhd has secured a RM33.4mn contract from Pertubuhan Keselamatan Sosial (PERKESO) to provide integrated facilities management (FM) services to PERKESO s Rehabilitation Centre in Malacca, via open tender. The contract is for a period of four years, commencing June 2018 until June 2022 (Bursa Malaysia). Page 3 of 9

4 E.A. Technique (M) Bhd has been awarded a contract by Petronas Carigali Sdn Bhd for the provision of a unit of Fast Crew Boat for Petroleum Arrangement Contractors (PACs) Production Operations, shared between Petronas Carigali and EnQuest Petroleum Production Malaysia Ltd. The contract duration will be for a primary period of three years, with two extension options of one year each upon expiry thereof and shall commence sometime in July The services shall be performed on Call-Out basis via an order at an agreed fixed schedule of rates to be shared between the sharing PACs, based on each PAC s actual utilization (The Edge). Page 4 of 9

5 News In Brief Economy Malaysia Malaysian Fiscal Policies Pivotal to Credit Quality, Says Moody's Fiscal measures are a particular area of focus for Malaysia given that the country's high debt burden acts as a credit constraint, said Moody's Investors Service. Consequently, to what extent the new government achieves fiscal deficit consolidation will be vital in gauging the eventual effects on Malaysia's fiscal metrics and credit profile, it said. Moody's said this in a report titled "Government of Malaysia: FAQ on credit implications of the new government's policies". The report analyses the implications of the new Malaysian government's (A3 stable) policies on the sovereign's credit profile. It said the transition of power, following the 14 th General Election last month away from the incumbent party that led the country for more than six decades, has introduced some policy uncertainty. Moody's said it would examine any new government's policies holistically to gauge their impact on the credit profile. Meanwhile, the rating agency has maintained its estimate of Malaysia's direct government debt at 50.8% of gross domestic product (GDP) in 2017 and its assessment of contingent liability risks posed by non-financial sector public institutions has also not changed following some statements by the new government. On Goods and Services Tax (GST) abolishment, Moody's said that in the absence of effective compensatory fiscal measures, this development is credit negative because it increases the government's reliance on oil-related revenue and narrows the tax base. It estimated that revenue lost from the scrapped tax would measure around 1.1% of GDP this year, even with some offsets, and 1.7% beyond 2018; further straining Malaysia's fiscal strength. (The Star) Asia Australia's Consumer Confidence Improves Slightly: Westpac Australia's consumer confidence improved slightly in June, the latest survey from Westpac Bank revealed. The Westpac- Melbourne Institute consumer sentiment index rose by 0.3% in June to from in April. The index remains above the 100-point plateau, meaning that optimists still outnumber pessimists. However, the reading stayed well below the levels typically associated with a robust customer. (RTT) Singapore Q1 Jobless Rate Falls as Estimated Singapore's unemployment rate decreased slightly as initially estimated in the first quarter, latest figures from the Ministry of Manpower showed. The seasonally adjusted jobless rate edged down to 2.0% in the first quarter from 2.1% in the previous quarter. That was in line with the flash data published on April 27. The unemployment rate among residents dropped from 3.0% to 2.8%. For citizen, the rate remained stable at 3.0%. (RTT) United States Powell Lauds Economy as Fed Nudges Up Interest-Rate Hike Path Federal Reserve officials raised interest rates for the second time this year and upgraded their forecast to four total increases in 2018, as unemployment falls and inflation overshoots their target faster than previously projected. The so-called dot plot released Wednesday showed eight Fed policy makers expected four or more quarter-point rate increases for the full year, compared with seven officials during the previous forecast round in March. The number viewing three or fewer hikes as appropriate fell to seven from eight. The median estimate implied three increases in 2019 to put the rate above the level where officials see policy neither stimulating nor restraining the economy. Page 5 of 9

6 Chairman Jerome Powell told reporters following the decision, which lifted the Fed s benchmark rate by a quarter percentage point to a range of 1.75% to 2%, that the main takeaway was that the economy is doing very well. Powell also announced he plans to start holding a press conference after every meeting in January, cautioning that having twice as many press conference does not signal anything. The Fed chief currently speaks to reporters after every other meeting of policy makers. The Federal Open Market Committee indicated that even though it s stepping up the pace of interest-rate hikes, economic growth should continue apace. The committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the committee s symmetric 2 percent objective over the medium term, according to its statement following a meeting in Washington. Updating their quarterly forecasts, officials projected the policy rate at 3.1% at the end of 2019, according to their median estimate, compared with 2.9% seen in March and 3.4% in 2020, unchanged from the prior forecast. (Bloomberg) Comments: The 25bps rate hike was within our expectation and also been widely expected. However, the reaction among investors was seen muted and manageable even as the official monetary policy statement struck some as signaling growing confidence that rate hikes would continue, and might even proceed at a faster pace this year (as the US Fed is now expecting 4 interest rate increases rather than 3 this year). Indeed, short-term Treasury bond yields (closely tied to monetary policy) rose faster than yields on longer-term bonds (which take their cues from forecasts for economic growth and inflation), suggesting that investors in the bond market see economic growth in the US continuing but not picking up sharply. The two-year note yield climbed 3.9 basis point to 2.578%, the highest since May 16. Meanwhile, the 10-year Treasury note yield picked up two basis points to 2.979%, while the 30-year bond yield was up by a basis point only to 3.103%. Concerns are growing especially on the impact / consequences of potential trade protectionism on the economy following changes on certain tariffs. However, the Fed appeared to shrug off those concerns but would continue to monitor readings on financial and international developments in determining future rate increases. On the interest rate outlook, rising probability on the next interest rate hike for this year would be in September and December Historically, the US Fed would normally adjust their interest rate when meetings associated with press conference and latest macroeconomic projections. However, starting 2019, a news conference would be held after every monthly Fed meeting in order to improve communications. Expect the Malaysian Ringgit to weaken on expectation of further strengthening of the US dollar. Unfavorable factors such as rising capital outflows and domestic issues are putting more pressures on the Ringgit. For now, we are maintaining our 2018 average Ringgit forecast at $4.00 against the US dollar. However, we do not expect Bank Negara Malaysia to change our accommodative monetary policy stance this year after the last hike in January This follows moderate inflationary pressures as indicated by soft consumer prices and modest growth in real GDP. Page 6 of 9

7 Rising Business Prices Point to Trend in Firming Inflation A gauge of U.S. business prices rose in May, the latest sign that inflation pressures in the economy are firming as the U.S. faces increasing tariff threats and a tightening labor market. The producer-price index, a measure of the prices businesses receive for their goods and services, rose a seasonally adjusted 0.5% in May from a month earlier, the Labor Department said. Energy-price increases helped drive the overall increase in business prices. Still, prices rose for a broader range of goods and services. Wednesday s producer-price data come on the back of strong consumer-price figures. These data point to a firming inflationary trend, driven by higher energy prices, increased threats and the imposition of tariffs, and reduced labor market slack. When excluding the often-volatile food and energy categories, prices were up 0.3% in May from the prior month. Prices excluding food, energy and a volatile gauge of margins called trade services increased 0.1% last month. (WSJ) Borrowing Costs Climb Along With Fed Rate Increases Borrowing costs for consumers have risen as the Federal Reserve continues to tighten monetary policy, with interest rates on home, auto and credit-card loans reaching multiyear highs in recent months. Rates on mortgages, which account for the biggest chunk of U.S. household borrowing, are at their highest levels since According to Freddie Mac, the average fixed rate on a 30-year mortgage was 4.54% last week, up from 3.95% in early January. Though rates are still moderate by historical standards, that increase is enough to add about $100 to the monthly mortgage on an average-priced home in the U.S. with a 20% down payment. So far, there is little sign that higher interest rates are damping consumer spending, which handily beat economists expectations in April even after the Fed raised its benchmark federal-funds rate in March to a range between 1.50% and 1.75%. (WSJ) Global Oil Demand to Grow Steadily in 2019 but Trade Risks Loom, Says IEA Oil demand will grow steadily in 2019 thanks to a solid global economy and stable prices, although trade tensions remain the largest risk, the International Energy Agency said. The IEA said it expects global oil demand to grow by 1.4 million barrels per day next year, to top 100 million bpd by the second quarter of the year. The agency expects demand to grow at the same rate this year, unchanged from its last report in May. "A solid economic background and an assumption of more stable prices are key factors. Risks include possibly higher prices and trade disruptions. Some governments are considering measures to ease price pressures on consumers," the Paris-based agency said in its monthly report. "There is the possibility of a downward revision to our economic assumptions in the next few months. The world economy is feeling some pain from higher oil prices." The oil price has risen by a third to around $77 a barrel, close to its highest since late 2014, since OPEC and other producers including Russia began cutting production in January 2017 by 1.8 million bpd. The Organization of the Petroleum Exporting Countries meets later this month to discuss its supply policy, particularly in light of protracted declines in Venezuela and the prospect of new U.S. sanctions on Iran later this year. (The Star) Europe and United Kingdom U.K. Inflation Stays Put as Fuel Prices Rise Most Since 2011 The biggest increase in auto-fuel prices in more than seven years helped keep U.K. inflation from continuing its downward path last month. Annual consumer-price growth stayed at 2.4% in May, as forecast by both the Bank of England and economists surveyed by Bloomberg. Upward pressure was led by the price of fuel, which leaped by 3.8%, the sharpest monthly rise since January 2011, the Office for National Statistics said. There was also pressure from air fares and ferry prices. These effects were partly offset by computer games and energy prices, which failed to match the large gains seen a year earlier. The figures come in the middle of a week of mixed economic readings that have left opinion divided over when the Bank of England will increase interest rates. Price growth has slowed from 3.1% at the end of last year as the effect of the pound s post-brexit vote collapse fades. The BOE expects Page 7 of 9

8 inflation to average 2.4% this quarter, with further interest-rate increases needed to bring it back to the 2% target over the next three years. However, money markets put the chance of a hike in August at little more than 50%. Core inflation, which excludes food, energy, tobacco and alcoholic drinks, stayed at 2.1% last month. However, input-price inflation remains below year-earlier levels and factories have chosen to absorb much of the pressure rather than pass it on to consumers. Output prices rose an annual 2.9% last month. House prices rose 3.9% in April from a year earlier, the weakest pace in more than a year. The worst-performing region was London, where prices rose just 1% as Brexit fears and stretched affordability sapped demand. (Bloomberg) Eurozone Industrial Production Continues to Falter Ahead of Key ECB Meeting Industrial production in the Eurozone fell more sharply than expected in April, resuming its 2018 decline after a March bounce and underlining doubts about the strength of the economy as the European Central Bank faces a big call on the future of one of its key stimulus programs. The European Union s statistics agency Wednesday said the output of factories, mines and utilities across the 19 countries that use the euro was 0.9% lower in April than in March, although 1.7% higher than a year earlier. That marked the fourth month in five in which industrial production has fallen. It was a sharper decline than had been anticipated, since economists surveyed by The Wall Street Journal last week estimated that output fell by 0.7%. Each of the Eurozone s five largest members saw a drop in output, with the Netherlands experiencing the sharpest decline at 4.4%. While a slump in energy generation was largely responsible for the overall contraction, most manufacturing also retreated, the exception being the production of tools and equipment. (WSJ) Eurozone Employment Growth Improves in Q1 Eurozone employment grew at a slightly faster pace in the three months ended March, data from Eurostat showed. Employment rose 0.4% sequentially in the March quarter, just above the 0.3% increase in the previous month. There were million employed in the euro area. On an annual basis, employment growth eased to 1.4% in the first quarter from 1.6% in the December quarter. In the E28, employment increased 0.4% quarterly and by 1.4% yearly in the first quarter. (RTT) Page 8 of 9

9 Share Buy-Back: 13 June 2018 Company Bought Back Price (RM) Hi/Lo (RM) Total Treasury Shares CMSB 105, / /2.69 1,396,200 DAIBOCI 3, / / ,300 GBGAQRS 252, / / ,568,502 GLOMAC 50, /0.46 7,288,200 GRANFLO 10, /0.20 9,984,000 INCKEN 15, ,205,300 JCBNEXT 30, ,300 KENANGA 450, / /0.63 2,831,200 MALAKOF 35, / ,048,400 NYLEX 6, / /0.62 6,810,024 P&O 5, / / ,878,993 PRESTAR 20, /0.87 8,394,100 SUNWAY 191, / / ,733,662 SYSCORP 175, / ,969,600 TROP 25, /0.83 8,866,242 UNISEM 101, / /2.38 3,796,700 WCT 470, / / ,002,036 YTL 4,600, / / ,753,418 YTLPOWR 13,198, / / ,152,112 Source: Bursa Malaysia Disclaimer The information in this report has been obtained from sources believed to be reliable. Its accuracy and/ or completeness is not guaranteed and opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein. Kaladher Govindan Head of Research TA SECURITIES HOLDINGS BERHAD (14948-M) A Participating Organisation of Bursa Malaysia Securities Berhad Menara TA One 22 Jalan P. Ramlee Kuala Lumpur Malaysia Tel: Fax: Page 9 of 9

10 SNAPSHOT OF STOCKS UNDER COVERAGE For Internal Circulation Only Company Share Price Target Price Market Cap. EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg % upside Recom BETA (RM) (RM) (RMm) FY18 FY19 FY18 FY19 FY18 FY19 High Price % Chg Low Price % Chg YTD 13-Jun-18 AUTOMOBILE BAUTO % Buy 2, MBMR % Buy PECCA % Buy SIME % Buy 17, UMW % Sell 7, BANKS & FINANCIAL SERVICES ABMB % Hold 6, AFFIN % Hold 5, AMBANK % Buy 11, CIMB % Buy 56, HLBANK % Buy 38, MAYBANK % Hold 104, PBBANK % Buy 92, RHBBANK % Hold 22, BURSA % Buy 6, BUILDING MATERIALS ANNJOO % Buy 1, CHINHIN % Hold CMSB % Buy 2, CSCSTEL % Hold ENGTEX % Buy CONSTRUCTION GADANG % Buy GAMUDA % Buy 8, IJM % Sell 6, KAB % Buy 91 na PESONA % Buy SENDAI % Sell SUNCON % Hold 2, WCT % Buy 1, LITRAK % Buy 2, CONSUMER Brewery CARLSBG % Hold 6, HEIM % Hold 6, Retail AEON % Hold 3, AMWAY % Sell 1, F&N % Sell 13, HUPSENG % Hold JOHOTIN % Hold NESTLE % Sell 33, PADINI % Hold 3, POHUAT % Buy QL % Sell 9, SIGN % Buy Tobacco BAT % Hold 10, GAMING Casino GENTING % Buy 33, GENM % Buy 29, NFO BJTOTO % Buy 3, HEALTHCARE Hospitals/ Pharmaceutical CCMDBIO % Hold 2, IHH % Sell 50, KPJ % Buy 4, Rubber Gloves HARTA % Sell 20, KOSSAN % Buy 5, SUPERMX % Buy 2, TOPGLOV % Buy 14, KAREX % Sell INDUSTRIAL SCIENTX % Hold 3, SKPRES % Buy 1, MEDIA ASTRO % Sell 8, MEDIA PRIMA % Sell na na STAR % Hold

11 SNAPSHOT OF STOCKS UNDER COVERAGE For Internal Circulation Only Company Share Price Target Price Market Cap. EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg % upside Recom BETA (RM) (RM) (RMm) FY18 FY19 FY18 FY19 FY18 FY19 High Price % Chg Low Price % Chg YTD OIL & GAS DNEX % Buy LCTITAN % Buy 11,797 na MHB % Buy 1, na MISC % Under Review 26, PANTECH % Buy PCHEM % Under Review 66, SAPNRG % Buy 3, na na SERBADK % Buy 4,802 na VELESTO % Buy 2, UZMA % Buy PLANTATIONS FGV % Buy 5, IJMPLNT % Sell 1, IOICORP % Buy 28, KFIMA % Buy KLK % Hold 26, SIMEPLT % Buy 37,133 na TSH % Buy 1, UMCCA % Sell 1, PROPERTY GLOMAC % Hold HUAYANG % Hold IBRACO % Buy 266 na IOIPG % Buy 9, MAHSING % Buy 2, SIMEPROP % Hold 8,501 na SNTORIA % Buy SPB % Hold 1, SPSETIA % Buy 11, SUNWAY % Hold 7, REIT SUNREIT % Hold 4, CMMT % Buy 2, POWER & UTILITIES MALAKOF % Sell 4, PETDAG % Sell 24, PETGAS % Buy 35, TENAGA % Buy 81, YTLPOWR % Hold 7, TELECOMMUNICATIONS AXIATA % Buy 43, DIGI % Buy 35, MAXIS % Sell 45, TM % Sell 14, TECHNOLOGY Semiconductor & Electronics ELSOFT % Buy INARI % Hold 7, MPI % Buy 2, UNISEM % Buy 1, TRANSPORTATION Airlines AIRASIA % Buy 10, AIRPORT % Sell 14, Freight & Tankers PTRANS % Buy 343 na TNLOGIS % Hold WPRTS % Buy 11, SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE Company Share Price Target Price Market Cap. EPS (cent) PER (X) Div Yield (%) 52week 52week % Chg % upside Recom Beta (S$) (S$) (S$m) FY18 FY19 FY18 FY19 FY18 FY19 High Price % Chg Low Price % Chg YTD BANKS & FINANCIAL SERVICES DBS % Buy 72, OCBC % Buy 51, UOB % Hold 45, PLANTATIONS WILMAR % Hold 20, IFAR % Buy BUY : Total return within the next 12 months exceeds required rate of return by 5%-point. HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point. SELL : Total return is lower than the required rate of return. Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months. Gross dividend is excluded from total return if dividend discount model valuation is used to avoid double counting. Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.