Regional Morning Notes

UOBKayHian Regional Morning Notes Friday, July 30, 2010 Refer to last page for important disclosures. Page 1 of 28 CHINA Update Industrial & Commercial Bank of China (BUY/HK$5.94/Target: HK$6.80) Page 2 0.6 for 10 rights issue to raise up to Rmb45b, with rights shares offered at an implied discount of 57%. HONG KONG Results Sands China (HOLD/HK$11.96/Fair: HK$12.42) Page 5 2Q10: Strong results largely due to luck; increasing concern over Parcel 5/6 opening delay. INDONESIA Results Astra International (BUY/Rp52,750/Target: Rp60,000) Page 8 1H10: Results in line. However, we expect a positive surprise from automobile sales in 2H10. Maintain BUY, raise target price to Rp60,000. United Tractors (BUY/Rp20,050/Target: Rp23,500) Page 11 1H10: Flat growth in net profit due to the impact of the strengthening of the rupiah, resulting in lower margin. MALAYSIA Update Hartalega Holdings (BUY/RM8.15/Target: RM9.88) Page 14 1QFY11 results preview: Robust earnings expected. SINGAPORE Results China XLX Fertiliser (BUY/S$0.525/Target: S$0.625) Page 17 2Q10: Below expectation on weak prices; improvement ahead. Singapore Airport Terminal Services (BUY/S$2.96/Target: S$3.36) Page 20 1QFY11: 10% rise in net profit, even as staff costs rise 16%. Update Indofood Agri Resources (BUY/S$2.35/Target: S$2.80) Page 23 2Q10 results preview: Expect higher net profit on rising sales volume. THAILAND Update Quality Houses (BUY/Bt2.26/Target: Bt2.90) Page 25 Expect double-digit profit growth for 2010-11. Still trading well below its five-year PE mean of about 10x with 7% annual dividend yield. Key Indices Prev Close 1D % 1W % 1M % YTD % DJIA 10467.2 (0.3) 1.4 6.0 0.4 S&P 500 1101.5 (0.4) 0.7 5.8 (1.2) FTSE 100 5314.0 (0.1) 0.0 8.1 (1.8) AS30 4536.2 (0.1) 3.2 4.9 (7.1) CSI 300 2878.0 0.5 3.5 12.3 (19.5) FSSTI 2997.7 0.4 1.4 5.7 3.5 HSI 21093.8 0.0 2.4 4.8 (3.6) JCI 3096.8 1.3 2.9 6.3 22.2 KLCI 1358.4 0.2 1.7 3.4 6.7 KOSPI 1770.9 (0.1) 2.0 4.3 5.2 Nikkei 225 9696.0 (0.6) 5.2 3.3 (8.1) SET 854.6 0.1 2.8 7.2 16.3 TWSE 7799.0 0.2 1.7 6.4 (4.8) BDI 1942 2.2 7.8 (20.6) (35.4) CPO (RM/mt) 2557 1.1 1.9 3.1 (1.3) Nymex Crude (US$/bbl) 78 1.8 (1.2) 3.2 (1.3) Source: Bloomberg Top BUYs/SELLs Current Target Pot. +/- Price Price (%) Ticker (lcy) (lcy) Top BUYs China Merchants Bk 3968 HK 20.80 26.50 27.4 CNOOC 883 HK 13.14 17.80 35.5 SJM Holdings 880 HK 6.92 8.00 15.6 Hong Leong Bank HLBK MK 8.89 10.00 12.5 WCT WCT MK 2.85 3.40 19.3 OCBC OCBC SP 9.05 12.38 36.8 SATS SATS SP 2.96 3.36 13.5 Swiber SWIB SP 1.06 1.54 45.3 Bangkok Bank BBL TB 139.00 181.00 30.2 PTT PTT TB 256.00 338.00 32.0 Top SELLs Top Glove TOPG MK 6.71 5.12 (23.7) TMB Bank TMB TB 1.97 0.63 (68.0) 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 Indonesia 4.55 6.00 6.20 Hong Kong (2.70) 4.00 4.50 China 9.10 9.50 8.30 Brent Crude Oil (US$/bbl) 62 75 85 Aluminium * (US$/mt) 1,671 2,137 2,194 Copper * (US$/mt) 5,178 7,102 7,508 Gold Price London * (US$/ounce) 974 1,161 1,225 Iron Ore * (USc/dmtu) 85 120 106 CPO (US$/mt) 670 776 716 BDI 2,617 3,000 3,300 * Bloomberg Source: UOB, UOB Kay Hian Key Assumptions Venue Beg Close Singapore Market Strategy 2H10 HK 4 Aug 4 Aug Analyst Presentation Luk Fook SG 4 Aug 5 Aug Post-results Corporate Roadshow CWT Limited SG 10 Aug 10 Aug Luncheon Presentation Regional Gaming Sector NY 9 Aug 10 Aug Analyst Presentation TORONTO 11 Aug 13 Aug Hengdeli Holdings SG 16 Aug 17 Aug Post-results Corporate Roadshow KL 18 Aug 18 Aug Corporate Events Regional Morning Notes Friday, July 30, 2010 Refer to last page for important disclosures. Page 2 of 28 Industrial & Commercial Bank of China – China BUY (Maintained) Company Update Share Price HK$5.94 Target Price HK$6.80 Upside +14.5% Company Description ICBC is the largest of the Big Four banks of China and its principal activities include commercial banking, investment banking and insurance business. Stock Data GICS sector Financials Bloomberg ticker: 1398 HK Shares issued (m): 334,019 Market cap (HK$m): 1,747,364 Market cap (US$m): 225,002 3-mth avg daily t'over (US$m): 179.9 Price Performance (%) 52-week high/low HK$ 7.02/HK$ 5.11 1mth 3mth 6mth 1yr YTD 3.1 4.9 4.2 6.6 (7.8) Major Shareholders % Ministry of Finance 35.3 Huijin 35.3 FY10 NAV/Share (Rmb