Regional Morning Notes

UOBKayHian Regional Morning Notes Thursday, July 15, 2010 Refer to last page for important disclosures. Page 1 of 21 CHINA Sector Power Page 2 Slowdown of power demand growth within expectation. Update Golden Meditech Holdings (BUY/HK$1.48/Target: HK$2.58) Page 3 FY10 earnings to be plagued by huge non-cash charges. HONG KONG Update Henderson Land (BUY/HK$47.70/Target: HK$54.26) Page 5 Police move in to seize documents on the aborted flat sales. We still do not think the episode will affect the Group in any noteworthy way. Technical Analysis Page 8 Hang Seng Index mirrors the Dow Jones Index. INDONESIA Update Holcim Indonesia (BUY/Rp2,300/Target: Rp2,900) Page 10 Management indicates that 1H10 sales may grow 12% with revenue growth of 15%. No surprise on this news. Maintain BUY. MALAYSIA Sector Semiconductor Page 12 Healthy chip sales; matched by intensive capital spending. SINGAPORE Strategy Running To Stand Still Page 14 Mixed newsflow could pose a challenge for equity markets. However, we see selective opportunities. OVERWEIGHT banks, office property and telcos. Update Kencana Agri (BUY/S$0.295/Target: S$0.38) Page 16 Double-digit production growth expected to continue despite the tree stress period. THAILAND Sector Telecommunications Page 19 Growth momentum continues but uncertainty remains on the issuance of 3G licences despite proceeding as scheduled. KEY STORY Singapore Running To Stand Still Page 14Mixed newsflow could pose a challenge for equity markets. However, we see selective opportunities. OVERWEIGHT banks, office property and telcos. Key Indices Prev Close 1D % 1W %1M % YTD %DJIA 10366.7 0.0 3.5 1.7 (0.6) S&P 500 1095.2 (0.0) 3.3 0.5 (1.8) FTSE 100 5253.5 (0.3) 2.9 1.0 (2.9) AS30 4477.3 1.8 4.7 (0.9) (8.3) CSI 300 2653.6 0.7 2.8 (3.8) (25.8) FSSTI 2952.8 0.8 3.2 4.8 1.9 HSI 20560.8 0.6 3.5 2.5 (6.0) JCI 2981.1 0.7 2.7 5.3 17.6 KLCI 1341.1 0.6 2.2 3.3 5.4 KOSPI 1758.0 1.3 4.9 4.0 4.5 Nikkei 225 9795.2 2.7 5.6 (0.9) (7.1) SET 819.5 0.3 0.6 5.0 11.6 TWSE 7714.5 1.5 2.4 3.5 (5.8) BDI 1709 (4.5) (15.3) (45.1) (43.1) CPO (RM/mt) 2423 0.2 1.6 (4.3) (6.5) Nymex Crude (US$/bbl) 77 (0.1) 4.0 2.6 (2.9) Source: Bloomberg Top BUYs/SELLs Current Target Pot. +/- Price Price (%) Ticker (lcy) (lcy) Top BUYs China Merchants Bk 3968 HK 19.86 26.50 33.4 CNOOC 883 HK 12.74 17.80 39.7 Hong Leong Bank HLBK MK 8.80 10.00 13.6 WCT WCT MK 2.85 3.40 19.3 OCBC OCBC SP 9.00 12.38 37.6 SATS SATS SP 2.82 3.60 27.7 Swiber SWIB SP 1.01 1.54 52.5 Bangkok Bank BBL TB 126.50 161.00 27.3 PTT PTT TB 246.00 325.00 32.1 Top SELLs Top Glove TOPG MK 14.40 10.23 (29.0) TMB Bank TMB TB 1.81 0.63 (65.2) 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) 13.80 4.80 Malaysia