Singapore Research Team – 6533 9688 research@dbsvickers.com www.dbsvickers.com “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” “Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are to contact DBSVR at +65 6398 7954 in respect of any matters arising from or in connection with this report.” Spotlight On (SP) Pacific Shipping Trust: Counterparty risk wanes BUY (upgrade from HOLD); US$0.305; Price Target: 12-Month US$0.37 (Prev US$0.30); PST SP; • 1Q10 DPU payout of 0.793UScts in line with estimates, 70% payout policy maintained • CSAV concludes 3rd round of fund raising, chances of renegotiating charter rates appear slimmer • FY10 DPU estimate thus raised by 10% • Upgrade to BUY, TP raised to S$0.37 (SP) Singapore Land: Benefiting from better office outlook BUY (upgrade from HOLD); S$6.80; Price Target: 12-Month S$7.99 (Prev S$6.94); SL SP • Results slightly ahead on China contributions • Purest office play, benefiting from the sector’s turnaround. • Upgrade to Buy, TP $7.99 (MK) Hong Leong Bank: Action packed! BUY; RM8.76; Price Target: 12-Month RM10.50; HLBK MK • Hong Leong Bank and EON Cap have submitted applications to Bank Negara on the former’s offer. Target to hold EGM by end May 2010 • Hong Leong Bank also plans to raise capital via rights issue (up to RM1.6bn) and issue of capital qualifying securities (up to RM1.8bn) • Maintain Buy and RM10.50 TP (HK) China Telecom Sector: Strong 3G subscribers’ growth ahead • Better than expected mobile subs figures in March bodes well for stronger growth in coming months • Sector valuation undemanding; concerns on margin squeeze fully priced in • Our top pick remains CT for undemanding valuation, double-digit earnings growth and doubling mobile subs by end-10. Ideas & Updates SINGAPORE Hong Leong Asia: Dual-growth drivers in China BUY; S$4.87; Price Target: 12-Month S$5.67; HLA SP Pacific Shipping Trust – See Spotlight Singapore Land – See Spotlight MALAYSIA Hong Leong Bank – See Spotlight HONG KONG China Telecom Sector – See Spotlight China State Construction: Infrastructure business to contribute bulk of future earnings BUY; HK$2.68; Price Target: 12-Month HK$ 4.23; 3311 HK Results SINGAPORE CapitaRetail China Trust (CRCT SP): In line Frasers Centrepoint Trust (FCT SP): In line Guocoland (GUOL SP): Below expectation United Industrial Corp (UIC SP): Above expectation INDONESIA Bank Mandiri (BMRI IJ): In line DBS Group Research . Equity 26 April 2010 Regional Morning Pack Regional Morning Pack Page 2 Analyst Roadshows & Events 2010 * Events Date Location DBSV Analyst POA Conference 24-25 May UK POA Conference 26-27 May US NDCR Corp Mtg/Lunch/Conf Call 2010* Events Date Location DBSV Analyst CapitaRetail China Trust 26 Apr SG Derek Tan *To register your interest in the above events, please contact your DBSV Sales representative. Market Data Earnings Gth (%) PE (x) 10F 11F 10F 11F Singapore 19.2 15.8 14.9 12.9 Malaysia 17.5 12.6 16.1 14.3 HK HSI 24.9 15.8 14.3 12.4 HK HSCCI (Red) 25.6 15.6 15.9 13.8 HK HSCEI (H) 31.3 18.5 12.4 10.4 Thailand 15.1 12.8 10.9 9.7 Indonesia 17.5 18.0 15.1 13.0 Source: DBS Vickers Key Indices Indices Close as at 23.04.10 % chg vs previous close YTD (%) QTD (%) MTD (%) Asia JCI Index 2,925 -0.1 15.4 5.3 5.3 STI 2,988 0.3 3.1 3.5 3.5 PCOMP 3,244 0.2 6.3 2.6 2.6 KOSPI 1,737 -0.1 3