Today s Highlights. Quick bites. Outside Malaysia. Company Update Jaya Tiasa (HOLD, maintain) - Expecting weaker results due to lower log data

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1 Today s Highlights Company Update Jaya Tiasa (HOLD, maintain) - Expecting weaker results due to lower log data Results Note Bursa (HOLD, maintain) - Derivatives should sustain growth Bursa M alaysia KLCI 52-wk range Mkt Cap (RMbn) 1, Vol (m shrs) 1, Value (RM m) 1, KLCI futures (spot) 1, KLCI futures (1-mth) 1, KLCI Index ( 12 - mt h) Quick bites 1900 SapuraKencana Awarded US$113m Mexican job from Pemex Outside Malaysia US stocks retreat from highs as crude hits energy shares May 15 Aug 15 Nov 15 Feb 16 May 16 German Ifo confidence falls less than expected after Brexit vote UK manufacturer confidence drops to recession levels on Brexit Japan s exports decline again in June, for ninth straight month South Korea s growth rate improves on consumption, construction Brazil s Meirelles calls for tighter budget to avoid more taxes Singapore central bank damps speculation of policy easing Oil tumbles to three-month low as US drilling climbs amid glut Top 5 Gainers Price (RM ) chg (RM ) % chg BAT HEIM PPB HLBANK PETGAS Top 5 Losers Price (RM ) chg (RM ) % chg AJIYA 3.74 (0.39) (9.44) UTDPLT (0.32) (1.18) MSM 4.88 (0.22) (4.31) PHARM A 5.66 (0.12) (2.08) ATLAN 5.07 (0.12) (2.31) Top 5 Value Traded Price (RM ) chg (RM ) V al (RM m) TENAGA (0.02) PBBANK AXIATA MAYBANK FGV Key Equity Indices Close % chg Ytd chg (%) KLCI (1.4) Dow Jones (0.4) 6.1 Other Markets Key Indicators COMMODITIES CURRENCIES Latest chg (%) Latest Ytd chg (%) CPO (RM/Tonne) RM/US$ Spot (Jan) 2,322.0 (1.7) RM per 100 Yen 3.85 (7.2) 3-mth futures (Mar) 2,270.0 (2.2) RM/S$ Yen/US$ Brent Crude Oil (US$/brl) Eur/US$ 0.91 (1.2) Spot 43.1 (2.4) RM/AUD mth futures 43.9 (2.3) MALAYSIA INTEREST RATES Latest Ytd chg (bps) Gold (US$/oz) OPR (%) 3.00 (25.0) Spot (0.3) 3-mth Klibor (%) 3.40 (44.0) 1-mth futures (0.3) Maybank BR (%) *as at 31 Dec 2014 Nasdaq (0.0) 1.8 FTSE (0.3) 7.5 East. Europe (0.1) (6.7) Mexico (0.9) 9.7 Shenzen B (12.5) Shanghai B (14.8) Hong Kong Korea Singapore (0.5) 1.6 Indonesia Philippines Thailand Vietnam (0.1) 12.1 India Taiwan (0.2) 7.8 Page 1 of 7

2 Quick Bites SAKP: Awarded US$113m Mexican job from Pemex SAKP announced that its unit SapuraKencana Mexicana SAPI. de CV has been awarded a US$113m (RM461m) contract by Pemex Exploracion y Produccion of Mexico for the procurement and construction of a 36 inch 18km sour gas pipeline linking two platforms in Ciudad del Carmen, Campeche. The scope of work comprises transportation and installation of pipelines, crossings, top side modifications and subsea works, including procurement and project management. Works are scheduled to start in July 2016 until March (Source: StarBiz) Comments: The US$113m contract award is positive, providing more earning visibility in a still uncertain operating environment. The contract award is however within our E&C revenue billings of RM4.5bn each in FY17E and FY18E. Our forecasts hence remain unchanged and we maintain our SOTP-derived TP of RM1.36 and HOLD rating. Our SOTP estimate assumes that the PETRONAS compensation will be in line with our valuation for the Berantai RSC and FPSO, at RM2.1bn. Page 2 of 7

3 Outside Malaysia US stocks retreat from highs as crude hits energy shares US stocks retreated from records as a tumble in the price of crude sank energy shares with investors looking to central-bank policy decisions later in the week. The S&P 500 Index fell 0.3% to 2, The Dow Jones Industrial Average dropped points (0.4%) to 18, German Ifo confidence falls less than expected after Brexit vote German business sentiment deteriorated less than expected in July, signaling companies may have withstood the initial shock of Britain s decision to leave the European Union. The Ifo institute s business climate index fell to from in June. The median estimate in a Bloomberg survey of economists was for a decline to UK manufacturer confidence drops to recession levels on Brexit UK manufacturing confidence dropped to the least since the last recession after Britain voted to leave the European Union, according to the Confederation of British Industry. A quarterly index of sentiment slumped to minus 47 in July from minus 5 in April, the group said. That s the lowest since early 2009, when the UK was in the midst of five straight quarters of contraction. Japan s exports decline again in June, for ninth straight month Japan s exports dropped again in June, with shipments down for a ninth consecutive month, underscoring the continuing challenge of reviving the nation s economy. Overseas shipments declined 7.4% yoy in June, the Ministry of Finance said. This was better than the median estimate of a 11.3% drop surveyed by Bloomberg. South Korea s growth rate improves on consumption, construction South Korea s growth rate advanced in 2Q16 supported by gains in private consumption and construction. Gross domestic product rose 0.7% from 1Q16, when it expanded 0.5%, the Bank of Korea said. This compares with a 0.6% increase forecast by analysts surveyed by Bloomberg. Brazil s Meirelles calls for tighter budget to avoid more taxes Brazil s Finance Minister Henrique Meirelles renewed an appeal for the approval of key austerity measures aimed at regaining investor confidence and reviving Latin America s largest economy. Brazil s tax burden would have to keep growing, stifling an economy that is already mired in its deepest recession in decades, if the government fails to promote structural adjustments to its budget, including a comprehensive pension reform, Meirelles said. He didn t rule out temporary tax increases in the short term. Singapore central bank damps speculation of policy easing Singapore s central bank said its current monetary policy stance is appropriate and inflation may turn positive later this year, damping speculation of further easing. Unless there is a marked deterioration in the global economy or significant shift to the inflation outlook, there is no need to change the monetary policy stance, Ravi Menon, managing director of the Monetary Authority of Singapore, said. Oil tumbles to three-month low as US drilling climbs amid glut WTI fell to the lowest in three months after US producers increased drilling for a fourth week even as the market contends with abundant stockpiles. Brent for September settlement fell US$0.97 (2.1%) to US$44.72 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* HUBLINE D INARI D DESTINI D OCR D TADMAX D ASIAPLY D CFM D SEACERA D SHH D LBS D MAGNUM D Source: Bloomberg Table 2: Shares Buyback/ Resale Company* Date Units Treasury Transaction PARKSON 23-Jul 385,000 52,318,480 Share Buyback SEM 23-Jul 100,000 67,800,000 Share Buyback E&O 23-Jul 693 4,988,833 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 Source : Bursa Malaysia Page 4 of 7

5 Fig 5: Shareholding change Substantial Shareholder Date Transaction Units Company EPF 20-Jul-16 Acquired 200,000 AIRPORT EPF 20-Jul-16 Disposed 2,700,000 ARMADA EPF 19-Jul-16 Disposed 200,000 BIMB EPF 20-Jul-16 Acquired 191,100 CMSB EPF 18-Jul-16 Disposed 140,000 CMSB EPF 20-Jul-16 Disposed 1,355,200 DIGI EPF 20-Jul-16 Disposed 684,100 ECOWLD KUMPULAN WANG PERSARAAN 15-Jul-16 Acquired 837,700 FGV KUMPULAN WANG PERSARAAN 13-Jul-16 Acquired 470,600 FGV KUMPULAN WANG PERSARAAN 12-Jul-16 Acquired 89,800 FGV EPF 20-Jul-16 Acquired 175,500 GENP EPF 20-Jul-16 Disposed 315,400 HLBANK EPF 20-Jul-16 Acquired 700,000 IGBREIT KUMPULAN WANG PERSARAAN 18-Jul-16 Disposed 677,800 IGBREIT EPF 20-Jul-16 Acquired 3,000,000 IHH EPF 20-Jul-16 Acquired 1,000,000 IJM EPF 20-Jul-16 Acquired 1,532,500 IOICORP EPF 20-Jul-16 Acquired 881,700 KLK KUMPULAN WANG PERSARAAN 18-Jul-16 Acquired 1,000,000 MYEG EPF 20-Jul-16 Acquired 454,500 PBBANK EPF 20-Jul-16 Disposed 925,000 PBBANK KUMPULAN WANG PERSARAAN 15-Jul-16 Disposed 37,600 PETGAS EPF 11 to 12-Jul-16 Disposed 105,700 PETGAS EPF 20-Jul-16 Disposed 167,000 PETGAS EPF 20-Jul-16 Acquired 1,348,200 POS EPF 20-Jul-16 Acquired 500,000 PPB EPF 20-Jul-16 Disposed 143,700 RHBBANK EPF 19-Jul-16 Acquired 893,100 SIME EPF 19-Jul-16 Disposed 3,000,000 SIME EPF 20-Jul-16 Acquired 156,800 SPSETIA EPF 20-Jul-16 Disposed 101,200 SUNREIT EPF 20-Jul-16 Acquired 94,900 TIMECOM EPF 20-Jul-16 Acquired 800,000 TM EPF 20-Jul-16 Disposed 3,200,000 TM EPF 20-Jul-16 Disposed 570,400 UOADEV EPF 20-Jul-16 Disposed 55,300 YINSON EPF 20-Jul-16 Disposed 2,000,000 YTL Source: Bursa Malaysia Page 5 of 7

6 Fig 6: Dividend Entitlement Stocks Particulars DPS (sen) Announce Ex-Date Lodge Payment ENGKAH Final Dividend Apr Jul Jul Aug-16 PANTECH Final Dividend Jun Jul Jul Aug-16 PRESTAR Final Dividend Apr Jul Jul Aug-16 TGUAN Final Dividend Apr Jul Jul Aug-16 ARMADA Final Dividend Apr Jul-16 1-Aug Aug-16 ATLAN First Interim Dividend Jul Jul-16 1-Aug Aug-16 ENRA Special Dividend Jul Jul-16 1-Aug Aug-16 ENRA First Interim Dividend Jul Jul-16 1-Aug Aug-16 FAVCO First and Final Dividend Apr Jul-16 1-Aug Aug-16 MUHIBAH First and Final Dividend Apr Jul-16 1-Aug-16 9-Sep-16 IBHD Final Dividend Jul Jul-16 2-Aug Aug-16 MJPERAK Final Dividend May Jul-16 2-Aug Aug-16 TAMBUN Final Dividend Jun-16 1-Aug-16 3-Aug Aug-16 UMCCA Second Interim Dividend Jun-16 1-Aug-16 3-Aug Aug-16 TAHPS First and Final Dividend Jun-16 2-Aug-16 4-Aug Aug-16 YINSON Final Dividend May-16 2-Aug-16 4-Aug Aug-16 PERSTIM Final Dividend Jun-16 3-Aug-16 5-Aug Aug-16 ENGKAH First Interim Dividend Jul-16 4-Aug-16 8-Aug Aug-16 JKGLAND First and Final Dividend May-16 4-Aug-16 8-Aug Aug-16 BURSA Interim Dividend Jul-16 5-Aug-16 9-Aug Aug-16 OIB Interim Dividend Jul-16 5-Aug-16 9-Aug Aug-16 KERJAYA Interim Dividend Jul-16 7-Aug-16 3-Aug Aug-16 CRESNDO Final Dividend Mar Aug Aug-16 5-Sep-16 KMLOONG Final Dividend Mar Aug Aug-16 9-Sep-16 ZHULIAN Second Interim Dividend Jul Aug Aug-16 9-Sep-16 IKHMAS Final Dividend Apr Aug Aug Sep-16 LBS First and Final Dividend Apr Aug Aug-16 5-Sep-16 FITTERS First and Final Dividend Apr Aug Aug-16 9-Sep-16 PANSAR First and Final Dividend Jun Aug Aug Sep-16 MAXIS Interim Dividend Jul Aug Aug Sep-16 RCE CAPITAL Final Dividend Jul Aug Aug Sep-16 MAHSING First and Final Dividend Apr Aug-16 2-Sep Sep-16 DOMINAN Final Dividend Jul-16 5-Sep-16 7-Sep Sep-16 KARYON Final Dividend Jun-16 6-Sep-16 8-Sep Sep-16 PANAMY Final Dividend May-16 6-Sep-16 8-Sep Sep-16 HEIM Second Interim Dividend Jul-16 7-Sep-16 9-Sep-16 7-Oct-16 ELKDESA Final Dividend Jun Sep Sep Sep-16 CAELY Final Dividend Jul Sep Aug Oct-16 PANTECH First Interim Dividend Jul Sep Sep Oct-16 WEIDA First and Final Dividend Jun-16 6-Oct Oct Oct-16 APOLLO First and Final Dividend Jun-16 8-Dec Dec-16 9-Jan-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