Today s Highlights. Quick bites. Outside Malaysia. Company Update Star Media (SELL, maintain) - Print remains under pressure

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1 Dec-14 Mar-15 Jun-15 Sep-15 Dec December 2015 Today s Highlights Company Update Star Media (SELL, maintain) - Print remains under pressure Quick bites KLK: SPAs for joint development completed Bursa Malaysia KLCI 52-wk range Mkt Cap (RMbn) 1, Vol (m shrs) 1, Value (RMm) 1, KLCI futures (spot) 1, KLCI futures (1-mth) 1, KLCI Index (12-mth) Outside Malaysia 1900 US stocks slip from three-week high, paring S&P gain Pending sales of US existing homes unexpectedly decrease 1600 UK house prices rise the most in eight months, nationwide says 1500 S. Korea's factory output unexpectedly falls on export decline Russian manufacturing fell in December amid resumed drop in oil Top 5 Gainers Price (RM) chg (RM) % chg Philippines makes last-minute decision to join China-led AIIB Brazil government settles US$18.3bn owed to state banks Oil slides as US crude inventories head for record growth HIGHTEC BPPLAS PPB OFI PETGAS Top 5 Losers Price (RM) chg (RM) % chg BAT (0.36) (0.65) MPI 9.32 (0.35) (3.62) ENRA PIE (0.32) (2.99) TIMECOM 7.49 (0.31) (3.97) Top 5 Value Traded Price (RM) chg (RM) Val (RMm) PBBANK MAYBANK TENAGA AXIATA PCHEM Key Equity Indices Close % chg Ytd chg (%) Other Markets Key Indicators KLCI (3.9) Dow Jones (0.7) (1.2) Nasdaq (0.8) 7.0 COMMODITIES CURRENCIES Latest chg (%) Latest Ytd chg (%) CPO (RM/Tonne) RM/US$ 4.29 (18.5) Spot (Jan) 2, RM per 100 Yen 3.56 (17.9) 3-mth futures (Mar) 2, RM/S$ 3.04 (12.8) Yen/US$ (0.7) Crude oil (US$/brl) Eur/US$ Spot RM/AUD 3.13 (8.4) 1-mth futures 36.6 (3.4) MALAYSIA INTEREST RATES Latest Ytd chg (bps) Gold (US$/oz) OPR (%) Spot 0 (100.0) 3-mth Klibor (%) 3.84 (2.0) 1-mth futures (0.8) Maybank BR (%) *as at 31 Dec 2014 FTSE (4.4) East. Europe (0.6) 3.8 Mexico (0.9) (0.3) Shenzen B Shanghai B Hong Kong (0.5) (7.3) Korea (0.3) 2.4 Singapore (0.1) (14.3) Indonesia (12.1) Philippines 0.0 (100.0) (3.9) Thailand (14.0) Vietnam India (0.5) (5.6) Taiwan (0.2) (11.0) Page 1 of 8

2 Quick Bites SPAs for joint development completed KLK announced that the Sales & Purchase Agreements (SPAs) for the proposed joint development with UEM Sunrise have been completed with the subscription of Redeemable Preference Shares (RPS) in the two joint venture companies (JVCs) and payment of the balance of the purchase price by KLK and UEM Sunrise. KLK s has subscribed for 60% of the RPS issued for Scope Energy (SESB) for RM487.2m and 40% of the RPS issued by Aura Muhibah (AMSB) for RM324.8m. In the proposed joint venture, KLK will dispose the Fraser Land (2,500 acres in Mukim Senai with an expected GDV of RM15bn over 15 years) to AMSB for RM871.2m cash (i.e. RM8 psf) and SESB will acquire the Gerbang Land (500 acres in Mukim Tanjung Kupang with an expected GDV of RM5bn over 8 years) from UEM Sunrise for RM871.2m cash (i.e. RM40 psf). (Source: Bursa Malaysia) Comment : We remain positive on the joint ventures with UEM Sunrise. KLK is strengthening its presence in the Malaysian property development sector while at the same time leveraging on the development potential of some of its large plantation land bank. Significant contributions from the two joint development, especially the Fraser Land, is expected in the longer term. However, KLK will immediately record an estimated land disposal gain (net of RPGT) of RM816.8m as the Fraser Land was acquired in 1989 for a total cost of RM11.3m. CPO prices are firmer and KLK s stock prices have also firmed lately on expectation of year-end window dressing activities. We maintain our FY16 core net profit forecast of RM1,228m, TP of RM21.21 and HOLD rating for KLK. Page 2 of 8

3 Outside Malaysia US stocks slip from three-week high, paring S&P gain US stocks fell as energy companies followed oil lower and a slide in Apple Inc. weighed on technology shares. The S&P 500 slipped 0.7% to 2, The Dow lost points (0.7%) to 17, Pending sales of US existing homes unexpectedly decrease Contracts to purchase previously owned US homes unexpectedly fell in November, confirming earlier figures that showed the industry lost momentum toward the end of the year. The index of pending home sales dropped 0.9% after a revised 0.4% gain the prior month, figures from the National Association of Realtors showed. The median forecast of 28 economists surveyed by Bloomberg called for an increase of 0.7%. UK house prices rise the most in eight months, nationwide says UK house prices rose the most in eight months in December, and an improving economy and labor market will support further gains in the coming months, Nationwide Building Society said. The average price of a home rose 0.8% to 196,999 (US$292,100) from November, the most since April, the lender said in a statement. The annual rate of growth accelerated to 4.5% in December from 3.7% the previous month. S. Korea's factory output unexpectedly falls on export decline South Korea s factory output missed estimates in November as poor exports due to weak global demand continue to weigh on production. Industrial production fell 0.3% yoy, Statistics Korea said. Output fell 2.1% from October, the most since January this year. Exports declined in the first 11 months of this year and that trend is expected to continue, with an almost 12 % drop forecast for this month. Russian manufacturing fell in December amid resumed drop in oil Russia s manufacturing industry contracted in December, halting a twomonth recovery as falling oil prices threaten to extend the country s recession into a second year. The Purchasing Managers Index fell to 48.7 in December (50.1 in November) based on a statement by Markit Economics. The median estimate in a Bloomberg survey was Philippines makes last-minute decision to join China-led AIIB After months of holding out, the Philippines said it would join the China-led Asian Infrastructure Investment Bank (AIIB) before a year-end deadline for founding members. The Southeast Asian nation will sign the AIIB s articles of agreement before Dec. 31, the government said. The Philippines said its indicative paid-in capital would be US$196m, payable over five years. Brazil government settles US$18.3bn owed to state banks Brazil s government is repaying obligations to state-run banks that stem mostly from budget maneuvers that are the basis for impeachment proceedings against the president. The Treasury this year is paying 72.4bn reais (US$18.3bn) it owed state banks such as Banco do Brasil, it said. The bulk of the amount had already been included in the 120bn-real primary budget deficit authorized by Congress this month. Oil slides as US crude inventories head for record growth Oil fell as US crude stockpiles expanded last week, adding to the country s biggest-ever annual growth. Brent for February settlement fell US$1.33 (3.5%) to US$36.46 a barrel. Source: Bloomberg (Lim Yee Ping; ; yeeping.lim@affinhwang.com) Page 3 of 8

4 Market Summary Table 1: Off Market transactions Shares Price (RM) Vol (m) Val (RMm) Type* OMEDIA D HUBLINE D PLS D XINGHE D TROP B D HUBLINE-CW D PHARMA D TENAGA D GOLDIS D BIMB D BOUSTEAD D BPPLAS D CWORKS D SSTEEL D ENGTEX D PRESTAR D QUALITY D * D-Direct M-Married OM-Odd Married OD-Odd Direct Source: Bloomberg Page 4 of 8

5 Market Summary(cont.) Table 2: Shares Buyback/ Resale Company* Date Units Treasury Transaction SEM 30-Dec 500,000 40,300,000 Share Buyback PARKSON 30-Dec 440,000 9,538,880 Share Buyback TROP 30-Dec 220,000 11,863,835 Share Buyback * Only FBM100 Component Stocks Source : Bursa Malaysia Table 3: ESOS Company* Date Units Transaction * Only FBM100 Component Stocks Source : Bursa Malaysia Table 4: Entitlements Company Entitlement Ex-Date Lodgement Payment OWG Bonus Entitlement 13-Jan Jan-16 - Source : Bursa Malaysia Page 5 of 8

6 Fig 5: Shareholding changes Substantial Shareholder Date Transaction Units Company EPF 23-Dec-15 Acquired AEON EPF 23-Dec-15 Disposed AFG EPF 23-Dec-15 Acquired AMMB EPF 23-Dec-15 Acquired ARMADA EPF 21-Dec-15 Acquired AXIATA EPF 23-Dec-15 Acquired AXISREIT Kumpulan Wang Persaraan 23-Dec-15 Disposed AXISREIT Lembaga Tabung Haji 23 to 28-Dec-15 Disposed BIMB EPF 23 to 28-Dec-15 Acquired DIALOG Kumpulan Wang Persaraan 23-Dec-15 Acquired DIALOG EPF 23-Dec-15 Acquired DIGI EPF 23-Dec-15 Disposed DIGI Lembaga Tabung Haji 23-Dec-15 Disposed GAMUDA EPF 23-Dec-15 Acquired HLBANK EPF 23-Dec-15 Acquired IHH EPF 23-Dec-15 Disposed IHH EPF 23-Dec-15 Disposed IJM EPF 23-Dec-15 Disposed IOICORP EPF 23-Dec-15 Acquired KLK EPF 23-Dec-15 Disposed KLK EPF 23-Dec-15 Acquired MAYBANK Kumpulan Wang Persaraan 22-Dec-15 Acquired MYEG EPF 23-Dec-15 Acquired PBBANK EPF 23-Dec-15 Disposed PBBANK Kumpulan Wang Persaraan 21 to 22-Dec-15 Acquired PETGAS EPF 23-Dec-15 Acquired PETGAS Kumpulan Wang Persaraan 22-Dec-15 Disposed PETGAS EPF 23-Dec-15 Disposed POS EPF 23-Dec-15 Disposed SIME EPF 23-Dec-15 Disposed SKPETRO EPF 23-Dec-15 Acquired SPSETIA Sungei Way Corporation Sdn Bhd 23-Dec-15 Acquired SUNWAY EPF 23-Dec-15 Acquired SUNWAY EPF 18 to 22-Dec-15 Acquired TENAGA EPF 18 to 21-Dec-15 Disposed TENAGA Amanahraya Trustees Bhd 21 to 23-Dec-15 Disposed TENAGA Global Transit International Sdn Bhd 23-Dec-15 Others TIMECOM EPF 23-Dec-15 Acquired TM EPF 23-Dec-15 Disposed WCT EPF 23-Dec-15 Disposed YTLCORP Source: Bursa Malaysia Page 6 of 8

7 Fig 6: Dividend Entitlement Stocks Particulars DPS (sen) Announce Ex-Date Lodge Payment GKENT Second Interim Dividend of 1.5 sen Dec Dec-15 5-Jan Jan-16 BJAUTO Second Interim Dividend of 2 sen Dec-15 4-Jan-16 6-Jan Jan-16 IMASPRO First and Final Single Tier Dividend 3.5 sen Oct-15 4-Jan-16 6-Jan Jan-16 MYEG Final Dividend of 1.4 sen Nov-15 4-Jan-16 6-Jan-16 4-Feb-16 FCW First Interim Dividend of 1.5 sen Dec-15 5-Jan-16 7-Jan-16 5-Feb-16 GDEX 1st and Final Single Tier Div of 1.00 sen Dec-15 5-Jan-16 7-Jan Feb-16 LBS Special Dividend of 6 sen Nov-15 5-Jan-16 7-Jan Jan-16 BJASSET Final Dividend of 1 sen Nov-15 6-Jan-16 8-Jan Jan-16 EPMB First Interim Dividend of 0.5 sen Nov-15 6-Jan-16 8-Jan Jan-16 HIAPTEK Single Tier Final Div of 0.3 sen Sep-15 6-Jan-16 8-Jan Jan-16 HIAPTEK Final Dividend of 0.3 sen Nov-15 6-Jan-16 8-Jan Jan-16 POHUAT 1st Interim Single Tier Div of 2 sen Dec-15 6-Jan-16 8-Jan Jan-16 SEEHUP Interim Dividend of 4.5 sen Nov-15 6-Jan-16 8-Jan Jan-16 YOCB Final Dividend of 2 sen Nov-15 6-Jan-16 8-Jan Jan-16 BJFOOD Second Interim Dividend of 1.25 sen Dec-15 7-Jan Jan Jan-16 CYL Interim Dividend of 3 sen Dec-15 7-Jan Jan Jan-16 MAGNI Special Dividend of 3 sen Dec-15 7-Jan Jan Jan-16 MAGNI Interim Dividend of 5 sen Dec-15 7-Jan Jan Jan-16 SCIENTX Single Tier Final Div of 13 sen Sep-15 7-Jan Jan Jan-16 GREENYB Final Dividend of 0.75 sen Nov-15 8-Jan Jan Jan-16 GAMUDA First Interim Dividend of 6 sen Dec Jan Jan Jan-16 TEKSENG Interim Dividend 0.5 sen Dec Jan Jan Jan-16 KESM Final Dividend of 3 sen Oct Jan Jan-16 5-Feb-16 UMACCA First Interim Dividend of 8 sen Dec Jan Jan-16 3-Feb-16 VS Final Dividend of 1.2 sen Nov Jan Jan Jan-16 BENALEC Final Dividend of 0.3 sen Oct Jan Jan Feb-16 BJSPORTS Second Interim Dividend of 5 sen Dec Jan Jan-16 3-Feb-16 ULICORP 3rd Single Tier Interim Div of 3 sen Dec Jan Jan Feb-16 MRCB Interim Dividend of 2.5 sen Dec Jan Jan Feb-16 F&N Final Dividend of 35.5 sen Dec Jan Jan-16 4-Feb-16 TAMBUN First Interim Dividend of 3 sen Nov Jan Jan Feb-16 HOMERIZ Final Dividend of 2.5 sen Dec Jan-16 3-Feb Feb-16 OKA Interim Dividend of 1.5 sen Dec-15 4-Feb Feb Feb-16 POHKONG First and Final Dividend of 1 sen Nov Feb Feb-16 9-Mar-16 SEDANIA First Interim Dividend of 1 sen Dec Feb Feb Feb-16 BKAWAN Final Dividend of 35 sen Nov Feb Feb Mar-16 KLK Final Dividend of 30 sen Nov Feb Feb Mar-16 VS First Interim Dividend of 1.5 sen Dec Feb Feb Mar-16 EKOVEST First and Final Dividend of 2 sen Nov Feb Feb Mar-16 PLB 1st and Final Single Tier Div of 5 sen Dec Feb Feb Mar-16 ASTINO First and Final Dividend of 1.95 sen Dec Feb-16 2-Mar Mar-16 Source: Bursa Malaysia Page 7 of 8

8 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 8 of 8