UOBKayHian Regional Morning Notes Tuesday, January 26, 2010 Please see important notice on last page Page 1 of 20 CHINA Sector Coal Page 2 Recent sell-off offers buying opportunities for quality coal plays. Our picks are Hidili and China Shenhua. Power Page 4 Upbeat on tariff hike; upgrade power sector to OVERWEIGHT and Huadian Power to BUY. Property Page 6 More tightening in property sector. INDONESIA Update Bank Danamon (BUY/Rp4,925/Target: Rp5,500) Page 8 CEO Sebastian Paredes tenders his resignation. MALAYSIA Strategy Page 10 Feedback to our 2010 strategy presentation in Singapore and Hong Kong: mostly MARKET WEIGHT or UNDERWEIGHT in Malaysia, but with some bright spots. SINGAPORE Results Keppel Land (BUY/S$ 3.44/Target: S$4.14) Page 12 FY09: Capitalising on residential segment recovery. Suntec REIT (SELL/S$1.32/Fair: S$1.10) Page 14 4Q09: Weakness at retail. Update DBS Group Holdings (BUY/S$14.70/Target: S$17.75) Page 16 4Q09 results preview: Asset quality deterioration. THAILAND Strategy Page 18 1H10 Strategy SET advance to slow. Stock prices to test their mean valuations. Prefer Banks and Telcos while small-cap sectors are recovery plays. KEY STORY China Power Page 4 Upbeat on tariff hike; upgrade power sector to OVERWEIGHT and Huadian Power to BUY. Thailand 1H10 Strategy Page 18 SET advance to slow. Stock prices to test their mean valuations. Prefer Banks and Telcos while small-cap sectors are recovery plays. Prev Close 1D % 1W % 1M % YTD % DJIA 10196.9 0.2 (3.9) (3.1) (2.2) S&P 500 1096.8 0.5 (3.5) (2.6) (1.6) FTSE 100 5260.3 (0.8) (4.3) (2.6) (2.8) AS30 4743.1 (0.6) (3.9) (1.3) (2.9) CSI 300 3328.0 (1.1) (4.9) (2.8) (6.9) FSSTI 2811.7 (0.3) (3.4) (0.9) (3.0) HSI 20598.6 (0.6) (4.0) (4.3) (5.8) JCI 2597.9 (0.5) (1.7) 5.0 2.5 KLCI 1296.8 (0.3) (0.1) 2.6 1.9 KOSPI 1670.2 (0.8) (2.4) (0.7) (0.7) Nikkei 225 10512.7 (0.7) (3.2) 0.2 (0.3) SET 710.4 (0.5) (4.9) (2.7) (3.3) TWSE 7873.0