Regional Morning Note

UOBKayHian Regional Morning Notes Wednesday, February 24, 2010 Please see important notice on last page Page 1 of 22 REGIONAL Sector Dry Bulk Shipping Page 2 Bi-weekly: BDI rebounds slightly after a quiet CNY. CHINA Update Bank of Communications (SELL/HK$7.99/Fair:HK$9.45) Page 4 Seeks to issue 7,349m new shares to raise up to Rmb42b. China Merchants Bank (BUY/HK$18.94/Target: HK$26.50) Page 6 Details on rights issue to lift capital-raising overhang. Maintain BUY. MALAYSIA Results CIMB Group (BUY/RM12.66/Target: RM14.80) Page 8 2009: Record net profit of RM2.8b (+44% yoy), above expectation. Declares dividend of 18.5sen/share and 1-for-1 bonus issue. PLUS Expressways (BUY/RM3.37/Target: RM4.00) Page 10 4Q09: Net profit of RM315m (+6.4% yoy) on the back of strong traffic volume growth. Results in line with our expectation. UMW Holdings (HOLD/RM6.18/Fair: RM6.40) Page 12 4Q09: In line with expectations as robust results at the auto division mitigates weakness at O&G and associates. SINGAPORE Update Indofood Agri Resources (BUY/S$2.11/Target: S$2.45) Page 14 We expect robust yoy earnings growth in 4Q09 thanks to higher CPO prices and production. Upgrade to BUY after share price correction. Tiger Airways (SELL/S$1.50/Fair: S$1.07) Page 16 On a wing and a prayer. THAILAND Sector Property Page 18 Residential: As expected, property tax incentives in place over the past two years will expire at end-Mar 10. Maintain MARKET WEIGHT. Results Home Product Center (BUY/Bt4.28/Target: Bt5.00) Page 20 2009: Net profit jumps 19% yoy to Bt1.1b, backed by healthy sales growth and solid margin expansion. KEY STORY Singapore Tiger Airways (SELL/S$1.50/Fair: S$1.07) Page 16 On a wing and a prayer. Prev Close 1D % 1W % 1M % YTD % Key Indices DJIA 10282.4 (1.0) 0.1 1.1 (1.4) S&P 500 1094.6 (1.2) (0.0) 0.3 (1.8) FTSE 100 5315.1 (0.7) 1.4 0.2 (1.8) AS30 4731.0 (0.0) 3.1 (0.9) (3.1) CSI 300 3198.6 (1.1) 0.9 (5.0) (10.5) FSSTI 2782.6 0.9 0.9 (1.3) (4.0) HSI 20623.0 1.2 1.7 (0.5) (5.7) JCI 2583.7 0.8 1.0 (1.0) 1.9 KLCI 1266.4 (0.0) 1.0 (2.6) (0.5) KOSPI 1628.9 0.1 1.7 (3.3) (3.2) Nikkei 225 10352.1 (0.5) 3.2 (2.3) (1.8) SET 715.6 1.4 3.3 0.2 (2.6) TWSE 7597.4 0.5 5.3 (4.2) (7.2) BDI 2724 0.1 4.8 (15.0) (9.4) CPO (RM/mt) 2627 0.9 1.7 6.7 1.4 Nymex Crude (US$/bbl) 79 (1.6) 2.7 6.1 (0.4) Source: Bloomberg Key Indices Current Target Pot. +/- Price Price (%) Ticker (lcy) (lcy) Top BUYs Chalco 2600 HK 7.55 11.00 45.7 China Merchants Bk 3968 HK 18.94 26.50 39.9 Hidili 1393 HK 8.20 13.10 59.8 PetroChina 857 HK 8.83 11.30 28.0 Hong Leong Fin Grp HLFG MK 7.80 8.55 9.6 MRCB MRC MK 1.37 1.67 21.9 Tanjong Plc TJN MK 17.98 19.66 9.3 OCBC OCBC SP 8.64 12.65 46.4 S'pore Press Hldgs SPH SP 3.75 4.40 17.3 Bangkok Bank BBL TB 111.50 161.00 44.4 PTT PTT TB 233.00 316.00 35.6 Top SELLs Air China 753 HK 6.83 4.68 (31.5) TMB Bank TMB TB 1.31 0.63 (51.9) Top BUYs/SELLs 2008 2009F 2010F