Regional Morning Notes

Draft – for internal use only UOBKayHian Regional Morning Notes Monday, July 19, 2010 Refer to last page for important disclosures. Page 1 of 24 REGIONAL Sector Dry Bulk Shipping Page 2 Uncertainties arise but limited BDI downside. CHINA Sector Consumer Page 4 This week’s consumer weekly features Chow Sang Sang, a leading jewellery retailer in Hong Kong and mainland China. Update Minmetals Land (BUY/HK$1.61/Target: HK$2.51) Page 6 Land acquisition speeding up. HONG KONG Sector Property Page 9 Larvotto is selling at a high price tag. More importantly, secondary market remains robust with ASP breaking a 12-year high. INDONESIA Update Semen Gresik (HOLD/Rp9,400/Fair: Rp9,550) Page 11 Management indicates that 1H10 sales may grow 5-10% while market share declined. Valuation is demanding. Downgrade to HOLD. MALAYSIA Results Bursa Malaysia (HOLD/RM7.02/Fair: RM6.80) Page 13 2Q10 Results: Net profit edged down 2% qoq. Results were in line with expectations. Low turnover velocity implies pick-up in ADT going forward. SINGAPORE Sector Property Page 16 Property Nuggets: Industrial – Powering up. Update CapitaCommercial Trust (BUY/S$1.32/Target: S$1.50) Page 18 Sale of StarHub Centre - building up for acquisitions. Maintain BUY. DBS Group Holdings (BUY/S$14.80/Target: S$19.82) Page 21 2Q10 Results Preview: Outperforming with lower credit costs. KEY STORY Regional Dry Bulk Shipping Page 2Uncertainties arise but limited BDI downside. Singapore DBS Group Holdings (BUY/S$14.80/Target: S$19.82) Page 212Q10 Results Preview: Outperforming with lower credit costs. Key Indices Prev Close 1D % 1W %1M % YTD %DJIA 10097.9 (2.5) (1.0) (3.4) (3.2) S&P 500 1064.9 (2.9) (1.2) (4.7) (4.5) FTSE 100 5158.9 (1.0) 0.5 (1.8) (4.7) AS30 4437.0 (0.4) 0.5 (3.0) (9.1) CSI 300 2616.1 0.3 (1.2) (3.0) (26.8) FSSTI 2957.7 0.5 1.4 4.4 2.1 HSI 20250.2 (0.0) (0.6) (0.2) (7.4) JCI 2992.5 0.4 1.6 2.1 18.1 KLCI 1336.7 0.2 0.9 1.4 5.0 KOSPI 1738.5 (0.7) 0.9 1.5 3.3 Nikkei 225 9408.4 (2.9) (1.8) (5.9) (10.8) SET 827.5 0.8 0.8 4.5 12.7 TWSE 7664.6 (0.5) 0.2 2.3 (6.4) BDI 1720 1.2 (9.6) (40.5) (42.8) CPO (RM/mt) 2454 0.3 2.3 (1.9) (5.3) Nymex Crude (US$/bbl) 76 (0.8) (0.1) (2.1) (4.2) Source: Bloomberg Top BUYs/SELLs Current Target Pot. +/- Price Price (%) Ticker (lcy) (lcy) Top BUYs China Merchants Bk 3968 HK 19.12 26.50 38.6 CNOOC 883 HK 12.26 17.80 45.2 Hong Leong Bank HLBK MK 8.80 10.00 13.6 WCT WCT MK 2.84 3.40 19.7 OCBC OCBC SP 9.00 12.38 37.6 SATS SATS SP 2.81 3.60 28.1 Swiber SWIB SP 1.02 1.54 51.0 Bangkok Bank BBL TB 129.50 161.00 24.3 PTT PTT TB 246.00 325.00 32.1 Top SELLs TMB Bank TMB TB 2.10 0.63 (70.0) 2009 2010F 2011F