Regional Morning Notes

UOBKayHian Regional Morning Notes Monday, July 26, 2010 Refer to last page for important disclosures. Page 1 of 24 CHINA Sector Consumer Page 2 China Foods – Short-term pains, long-term gains. HONG KONG Sector Property Page 4 Expectation of high prices in the upcoming land sales explains home-buying frenzy. Results of this Wednesday's auction will be key market pointer. INDONESIA Update Astra Agro Lestari (BUY/Rp21,250/Target: Rp28,000) Page 6 We expect AALI’s 2Q10 profit to increase on higher CPO sales volume and ASP. Bumi Serpong Damai (BUY/Rp800/Target: Rp1,100) Page 9 1H10 sales hit Rp870b, still within 2010 target of Rp2t. Margins should improve on higher ASP and stronger balance sheet position. MALAYSIA Update PLUS Expressways (BUY/RM3.65/Target: RM4.00) Page 11 Maintain BUY for its resilient traffic volume growth and sustainable gross dividend yield of 5-6%. SINGAPORE Sector Property Page 14 Property Nuggets: Industrial – Fastest rising capital values. Property Page 16 Switch to industrial sector stocks. Results SIA Engineering (HOLD/S$4.13/Fair: S$3.99) Page 18 1QFY11: Results meet expectations, forward guidance lacks growth. Update Singapore Airport Terminal Services (BUY/S$2.81/Target: S$3.60) Page 21 Call for a third ground handler. Key Indices Prev Close 1D % 1W %1M % YTD %DJIA 10424.6 1.0 3.2 2.8 (0.0) S&P 500 1102.7 0.8 3.5 2.4 (1.1) FTSE 100 5312.6 (0.0) 3.0 5.3 (1.9) AS30 4475.1 1.8 0.9 0.8 (8.3) CSI 300 2793.1 0.4 6.8 2.1 (21.9) FSSTI 2973.5 0.6 0.5 4.3 2.6 HSI 20815.3 1.1 2.8 0.6 (4.8) JCI 3042.0 1.1 1.7 3.2 20.0 KLCI 1345.7 0.7 0.7 1.4 5.7 KOSPI 1758.1 1.3 1.1 1.6 4.5 Nikkei 225 9431.0 2.3 (2.6) (3.1) (10.6) SET 840.2 0.9 1.5 5.9 14.4 TWSE 7761.2 1.2 1.3 3.8 (5.2) BDI 1826 1.4 6.2 (27.4) (39.2) CPO (RM/mt) 2534 1.0 3.3 2.1 (2.2) Nymex Crude (US$/bbl) 77 (1.3) (0.6) (1.6) (3.5) Source: Bloomberg Top BUYs/SELLs Current Target Pot. +/- Price Price (%) Ticker (lcy) (lcy) Top BUYs China Merchants Bk 3968 HK 20.40 26.50 29.9 CNOOC 883 HK 12.98 17.80 37.1 Hong Leong Bank HLBK MK 8.82 10.00 13.4 WCT WCT MK 2.82 3.40 20.6 OCBC OCBC SP 8.98 12.38 37.9 SATS SATS SP 2.81 3.60 28.1 Swiber SWIB SP 1.07 1.54 43.9 Bangkok Bank BBL TB 141.00 181.00 28.4 PTT PTT TB 247.00 325.00 31.6 Top SELLs Top Glove TOPG MK 6.75 5.12 (24.1) TMB Bank TMB TB 1.94 0.63 (67.5) 2009 2010F 2011F GDP (% yoy) US (2.40) 3.10 2.90 Euro Zone (4.10) 1.10 1.30 Japan (5.23) 3.25 1.70 Singapore (1.25) 13.80