Regional Morning Notes

UOBKayHian Regional Morning Notes Tuesday, July 13, 2010 Refer to last page for important disclosures. Page 1 of 25 REGIONAL Sector Plantation Page 2 Palm oil inventories at 10-month low on higher exports. CPO price to trend slightly higher but not good enough to boost share prices. CHINA Sector Insurance Page 4 Proposed liberalisation of guaranteed returns for non-PAR products; over-reaction by the market. Property Early signs of relaxation. Page 5 Property Strong property development data but slowdown ahead. Page 7 HONG KONG Sector Macau Gaming Page 9 1,000 workers heading home. MALAYSIA Sector Gaming Page 11 Betting duty for casino could potentially rise following the increase in pool betting duty for NFOs. Maintain MARKET WEIGHT. SINGAPORE Results Ezra Holdings (BUY/S$1.81/Target: S$2.50) Page 13 3QFY10: Weak associate contribution mitigated by one-off gain. Singapore Press Holdings (BUY/S$3.93/Target: S$4.50) Page 16 3QFY10: Newspaper advertising revenue up 28% yoy. Lower newsprint cost partially offsets higher staff cost. THAILAND Results TISCO Financial Group (BUY/Bt29.75/Target: Bt40.50) Page 19 2Q10: A solid 52% yoy jump in net profit to Bt763m, backed by strong revenue expansion. Update Banpu Plc (BUY/Bt616.00/Target: Bt778.00) Page 22 Resilient coal price. Raise 2011 EPS forecast. Key Indices Prev Close 1D % 1W %1M % YTD %DJIA 10216.3 0.2 5.5 0.1 (2.0) S&P 500 1078.8 0.1 5.5 (1.2) (3.3) FTSE 100 5167.0 0.7 7.1 0.1 (4.5) AS30 4429.5 0.3 4.2 (1.9) (9.3) CSI 300 2676.2 1.1 6.5 (3.0) (25.2) FSSTI 2925.3 0.3 2.9 4.6 1.0 HSI 20467.4 0.4 3.2 3.0 (6.4) JCI 2958.8 0.5 2.8 5.6 16.7 KLCI 1326.7 0.2 2.1 2.5 4.2 KOSPI 1734.1 0.6 3.5 3.5 3.0 Nikkei 225 9548.1 (0.4) 3.0 (1.6) (9.5) SET 819.6 (0.1) 1.9 6.5 11.6 TWSE 7639.6 (0.1) 2.7 4.7 (6.7) BDI 1840 (3.3) (17.0) (44.0) (38.8) CPO (RM/mt) 2400 (0.3) (1.4) (5.7) (7.4) Nymex Crude (US$/bbl) 75 (1.5) 3.9 1.6 (5.6) Source: Bloomberg Top BUYs/SELLs Current Target Pot. +/- Price Price (%) Ticker (lcy) (lcy) Top BUYs China Merchants Bk 3968 HK 19.58 26.50 35.3 CNOOC 883 HK 13.08 17.80 36.1 Hong Leong Bank HLBK MK 8.68 10.00 15.2 WCT WCT MK 2.79 3.40 21.9 OCBC OCBC SP 9.00 12.42 38.0 SATS SATS SP 2.78 3.60 29.5 Swiber SWIB SP 1.00 1.54 54.0 Bangkok Bank BBL TB 128.00 161.00 25.8 PTT PTT TB 246.00 325.00 32.1 Top SELLs Top Glove TOPG MK 14.04 10.23 (27.1) TMB Bank TMB TB 1.76 0.63 (64.2) 2009 2010F 2011F GDP (% yoy) US (2.40) 3.00 2.92 Euro Zone (4.10) 1.20 1.40 Japan (5.23) 2.15 1.90 Singapore (1.25) 9.00 4.80 Malaysia (1.70) 6.10 5.10 Thailand