UOBKayHian Regional Morning Notes Thursday, April 01, 2010 Please see important notice on last page Page 1 of 22 CHINA Results China Merchants Holdings Int’l (BUY/HK$28.60/Target: HK$32.50) Page 2 2009: Results beat consensus despite a harsh year. Outlook remains upbeat. CNOOC (BUY/HK$12.78/Target: HK$17.80) Page 4 2009: Net profit down 33.6% yoy to Rmb29.5b, in line with our and consensus forecasts. Comba Telecom (BUY/HK$9.94/Target: HK$13.55) Page 6 2009: Turnkey solutions and overseas development to lead growth. Dynasty Fine Wines (BUY/HK$2.52/Target: HK$3.15) Page 8 2009: Results in line with expectations; expect accelerating sales growth in 2010. Update Lianhua Supermarket (BUY/HK$27.95/Target: HK$33.00) Page 10 2009: Reaching a “sweet spot”. Raise target price to HK$33.00. INDONESIA Results Bank Rakyat Indonesia (BUY/Rp8,250/Target: Rp10,200) Page 12 2009: Results in line with our estimate. We revise up our target price to Rp10,200 based on 4x 2010F P/B due to expected higher loan growth. MALAYSIA Sector Banking Page 14 Feb 10: Loans grew stronger in Feb 10 supported by strong household loan. But growth likely to decelerate after the recent interest rate hike. SINGAPORE Strategy Ride on the beneficiaries of Hospitality/Tourism Sector Page 16 We remain OVERWEIGHT on upside surprises from newsflow/data points and earnings upgrades. BUY SIA, CDLH-T, SIA Eng, SPH and Hour Glass. Update ST Engineering (SELL/S$3.19/Fair: S$2.94) Page 18 Positive flow through from S$1b contract. THAILAND Update Rojana Industrial Park (BUY/Bt9.60/Target: Bt14.40) Page 20 All business units progressing well. To post double-digit growth over the next three years, mainly from residential business. Maintain BUY. KEY STORY China Comba Telecom (BUY/HK$9.94/Target: HK$13.55) Page 6 2009: Turnkey solutions and overseas development to lead growth. Singapore Strategy Ride on the beneficiaries of Hospitality/Tourism Sector Page 16 We remain OVERWEIGHT on upside surprises from newsflow/data points and earnings upgrades. BUY SIA, CDLH-T, SIA Eng, SPH and Hour Glass. Prev Close 1D % 1W % 1M % YTD % DJIA 10856.6 (0.5) 0.2 5.1 4.1 S&P 500 1169.4 (0.3) 0.1 5.9 4.9 FTSE 100 5679.6 0.1 0.0 6.1 4.9 AS30 4893.1 (0.7) (0.2) 4.2 0.2 CSI 300 3345.6 (0.6) 2.1 0.6 (6.4) FSSTI 2887.5 (1.6) 0.0 4.1 (0.4) HSI 21239.4 (0.6) 1.1 0.9 (2.9) JCI 2777.3 (0.7) 0.1 8.7 9.6 KLCI 1320.6 0.1 0.8 2.9 3.8 KOSPI 1692.9 (0.4) 0.7 6.2 0.6 Nikkei 225 11089.9 (0.1) 2.5 9.0 5.2 SET 788.0 (0.1) 0.2 9.2 7.3 TWSE 7920.1 (0.5) 1.2 4.5 (3.3) BDI 2998 0.5 (7.6) 9.5 (0.2) CPO (RM/mt) 2569 (0.2) (1.8) (1.2) (0.8) Nymex Crude (US$/bbl) 84 1.7 3.9 5.1 5.5 Source: Bloomberg Key Indices Current Target Pot. +/- Price Price (%) Ticker (lcy) (lcy) Top BUYs China Merchants Bk 3968 HK 21.00 26.50 26.2 CNOOC 883 HK 12.78 17.80 39.3 Poly HK 119 HK 9.91 14.30 44.3 Hong Leong Fin Grp HLFG MK 8.45 8.55 1.2 KL Kepong KLK MK 16.68 19.00 13.9 Mah Sing MSGB MK 1.90 2.50 31.6 OCBC OCBC SP 8.71 12.65 45.2 S'pore Press Hldgs SPH SP 3.82 4.40 15.2 Bangkok Bank BBL TB 131.50 161.00 22.4 PTT PTT TB 262.00 316.00 20.6 Top SELLs TMB Bank TMB TB 1.40 0.63 (55.0) Source: UOB Kay Hian Top BUYs/SELLs 2009 2010F 2011F GDP (% yoy) US (2.50) 3.00 3.00 Euro Zone (3.90) 1.20 1.50 Japan (5.30) 1.85 1.80 Singapore (2.08) 4.50 5.00 Malaysia (2.20) 4.90 n.a. Thailand (3.20) 4.00 4.30 Indonesia 4.40 5.64 6.08 Hong Kong (3.30) 3.50 n.a. China 8.70 8.00 8.50 Brent Crude Oil (US$/bbl) 62 75 85 Aluminium * (US$/mt) 1,671 2,117 2,247 Copper * (US$/mt) 5,178 6,958 7,341 Gold Price London * (US$/ounce) 974 1,180 1,194 Iron Ore * (USc/dmtu) 85 126 137 CPO (US$/mt) 670 776 716 BDI 2,617 3,000 3,300 * Bloomberg Source: UOB, UOB Kay Hian Key Assumptions Venue Beg Close Shenguan Holdings Corporate Roadshow S’pore 1 Apr 1 Apr Delloyd Ventures Bhd Luncheon Presentation KL 1 Apr 1 Apr UOB Luncheon Presentation S’pore 6 Apr 6 Apr Globetronics Bhd Plant Visit KL 6 Apr 6 Apr Comba Telecom Corporate Roadshow Shanghai 8 Apr 9 Apr Corporate Events Regional Morning Notes Thursday, April 01, 2010 Please see important notice on last page Page 2 of 22 China Merchants Holdings International 2009: Results beat consensus despite a harsh year CMHI’s 2009 results beat consensus and our forecast by 10.5% and 14% respectively, thanks to effective cost control. Sustainable recovery of container throughput to boost future growth. Maintain BUY and rais