Regional Morning Notes

UOBKayHian Regional Morning Notes Tuesday, July 27, 2010 Refer to last page for important disclosures. Page 1 of 22 CHINA Sector Property Page 2 Sales volume remains weak but June sales could be the trough. Update China Dongxiang (HOLD/HK$4.45/Fair: HK$5.20) Page 4 Ripe for harvest. Downgrade to HOLD. HONG KONG Sector Macau Gaming Page 7 2Q10 results preview: Set to impress. INDONESIA Results Bank Mandiri (BUY/Rp6,150/Target: Rp7,300) Page 9 1H10: Results in line with our estimate; momentum growing with an 8% qoq loan growth. MALAYSIA Sector Consumer Page 12 F&B companies’ share prices have rallied due to strong fundamentals and some M&As and consolidation expectations. Maintain MARKET WEIGHT. Update Genting Plantations (SELL/RM7.08/Fair: RM6.80) Page 14 Margin squeeze a result of higher cost of production on the back of marginally higher plantation revenue. Maintain SELL. SINGAPORE Results Singapore Airlines (BUY/S$14.76/Target: S$18.10) Page 17 1QFY11: Yields improve; issues positive guidance. THAILAND Sector Energy Page 20 Rally not yet over. BUY PTTEP and BANPU. KEY STORY Thailand Energy Page 20Rally not yet over. BUY PTTEP and BANPU. Key Indices Prev Close 1D % 1W %1M % YTD %DJIA 10525.4 1.0 3.7 3.8 0.9 S&P 500 1115.0 1.1 4.1 3.6 (0.0) FTSE 100 5351.1 0.7 4.1 6.0 (1.1) AS30 4504.4 0.7 3.0 1.5 (7.7) CSI 300 2811.1 0.6 4.8 2.7 (21.4) FSSTI 2967.0 (0.2) 0.7 4.0 2.4 HSI 20839.9 0.1 3.7 0.7 (4.7) JCI 3023.7 (0.6) 1.6 2.6 19.3 KLCI 1351.8 0.5 1.4 1.9 6.2 KOSPI 1769.1 0.6 2.1 2.3 5.1 Nikkei 225 9503.7 0.8 1.0 (2.4) (9.9) SET 840.2 0.9 1.5 5.9 14.4 TWSE 7787.5 0.3 1.8 4.2 (4.9) BDI 1841 0.8 6.3 (26.4) (38.7) CPO (RM/mt) 2570 1.4 3.2 3.8 (0.8) Nymex Crude (US$/bbl) 79 (0.1) 1.9 0.0 (0.6) Source: Bloomberg Top BUYs/SELLs Current Target Pot. +/- Price Price (%) Ticker (lcy) (lcy) Top BUYs China Merchants Bk 3968 HK 20.20 26.50 31.2 CNOOC 883 HK 12.98 17.80 37.1 Hong Leong Bank HLBK MK 8.86 10.00 12.9 WCT WCT MK 2.75 3.40 23.6 OCBC OCBC SP 8.95 12.38 38.3 SATS SATS SP 2.84 3.60 26.8 Swiber SWIB SP 1.07 1.54 43.9 Bangkok Bank BBL TB 141.00 181.00 28.4 PTT PTT TB 247.00 338.00 36.8 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 4.80 Malaysia (1.70) 6.10 5.10 Thailand (2.20) 5.50 4.70