Regional Morning Note

UOBKayHian Regional Morning Notes Tuesday, February 23, 2010 Please see important notice on last page Page 1 of 36 REGIONAL Sector Plantation Page 3 Emergence of price catalysts - prolonged dry spells and peat soil fires in two main states resulting from the El Nino effect. Positive for CPO prices. CHINA Sector Property Page 5 Big drop in sales during Chinese New Year is within our expectation. Telecommunications Page 7 Jan 10: A good start; 3G handset demand may heat up in 2010. Results Parkson Retail Group (SELL/HK$11.18/Fair: HK$8.00) Page 9 FY09: Results below expectation; SSS growth and concessionaire rate much lower than Hong Kong listed peers. Poly Hong Kong (BUY/HK$8.99/Target: HK$12.67) Page 11 2009: Strong results and positive 2010 management guidance. HONG KONG Sector Property Page 13 Encouraging home sales and good price fetched at land auction reaffirm housing market is still on solid ground. INDONESIA Update United Tractors (BUY/Rp16,950/Target: Rp21,600) Page 15 Expect sturdy 4Q09 profit on sustainable revenue from construction machinery and strong coal production. MALAYSIA Results UEM Land (BUY/RM1.42/Target: RM2.10) Page 17 4Q09: Net profit of RM98.5m was above expectations due to stronger- than-expected industrial land sales. Unisem (M) (BUY/RM2.20/Target: RM2.84) Page 19 2009: Net profit of RM61.8m, 15% above consensus. KEY STORY China Parkson Retail Group (SELL/HK$11.18/Fair: HK$8.00) Page 9 FY09: Results below expectation; SSS growth and concessionaire rate much lower than Hong Kong listed peers. Prev Close 1D % 1W % 1M % YTD % Key Indices DJIA 10383.4 (0.2) 2.8 2.1 (0.4) S&P 500 1108.0 (0.1) 3.0 1.5 (0.6) FTSE 100 5352.1 (0.1) 3.6 0.9 (1.1) AS30 4732.7 1.6 3.6 (0.8) (3.1) CSI 300 3233.3 (0.6) 2.6 (3.9) (9.6) FSSTI 2757.5 0.0 0.1 (2.2) (4.8) HSI 20377.3 2.4 0.4 (1.7) (6.8) JCI 2564.3 0.4 1.9 (1.8) 1.2 KLCI 1266.4 0.7 1.4 (2.6) (0.5) KOSPI 1627.1 2.1 2.1 (3.4) (3.3) Nikkei 225 10400.5 2.7 3.9 (1.8) (1.4) SET 705.8 0.8 2.4 (1.2) (3.9) TWSE 7560.0 1.6 4.7 (4.6) (7.7) BDI 2721 0.3 6.0 (15.1) (9.5) CPO (RM/mt) 2603 (0.2) 1.7 5.5 0.5 Nymex Crude (US$/bbl) 80 0.4 8.1 7.5 1.0 Source: Bloomberg Key Indices Current Target Pot. +/- Price Price (%) Ticker (lcy) (lcy) Top BUYs Chalco 2600 HK 7.38 11.00 49.1 China Merchants Bk 3968 HK 18.82 26.50 40.8 Hidili 1393 HK 7.93 13.10 65.2 PetroChina 857 HK 8.75 11.30 29.1 Hong Leong Fin Grp HLFG MK 7.83 8.55 9.2 MRCB MRC MK 1.39 1.67 20.1 Tanjong Plc TJN MK 17.80 19.66 10.4 OCBC OCBC SP 8.56 12.65 47.8 S'pore Press Hldgs SPH SP 3.73 4.40 18.0 Bangkok Bank BBL TB 109.50 161.00 47.0 PTT PTT TB 227.00 316.00 39.2 Top SELLs Air China 753 HK 6.85 4.68 (31.7) TMB Bank TMB TB 1.26 0.63 (50.0) Top BUYs/SELLs