Morning Pack

“In Singapore, this research report or research analyses may only be distributed to Institutional “Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”), are Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, to contact DBSVR at +65 6398 7950 in respect of any matters arising from or in connection with Chapter 289 of Singapore.” this report.” www.dbsvickers.com Refer to important disclosures at the end of this report Spotlight On (SP) CapitaMalls Asia: New acquisitions imminent? BUY; S$2.16; CMA SP; Price Target: S$2.58 (Prev S$2.51) • No surprises in results • Significant new investment possibilities in 2H10 • Maintain Buy, TP $2.58 offers 19% upside (SP) Sembcorp Marine: Petrobras holds the key BUY; S$4.04; SMM SP: Price Target: 12-month S$5.10 (Prev S$5.40) • 2Q10 net profit rose 28% to S$176m, buoyed by margin expansion despite drop in sales. • Low YTD order wins of S$853m led to decline in order book to S$4.3bn. • Lowered guidance for order wins of S$2b-$3b, tendered for 7 drillships and 2 semi-subs from Petrobras worth about US$6.5bn. • Lower FY11F by 17% due to deferring earnings recognition from lower-margin Petrobras orders. Maintain BUY, TP reduced to $5.10,still with 26% upside. • (HK) Lianhua Supermarket: Favourable environment intact BUY; HK$31.95; 980 HK; Price Target: 12m HK$36.85 (Prev HK$32.22) • Interim results due on Aug 24 to likely post a healthy 23% y-o-y earnings growth to RMB307m. • Further synergies from earlier acquisition of Hualian Supermarket to flow through to 2H10. Potential injection of GMS in coming months could also boost earnings by another c.6%. • Target price lifted to HK$36.85 as we benchmark 28x 12-month rolling PE (previous: 28x FY10 PE). Maintain BUY. Ideas & Updates SINGAPORE CapitaMalls Asia: See Spotlight Sembcorp Marine – See Spotlight ST Engineering: Towards a strong 2H BUY; S$3.26; STE SP; Price Target: 12-month S$3.55 MALAYSIA Genting Plantations: Expect flat 2Q10 HOLD RM7.10; GENP MK; Price Target : 12-Month RM 7.20 HONG KONG Lianhua Supermarket: Favourable environment intact BUY; HK$31.95; 980 HK ; Price Target : 12m HK$ 36.85 (Prev HK$32.22) Flash Note China Toll Road Sector: 1H10 results preview Pulse of Pharmaceutical Sector: 1H10 results preview THAILAND Delta Electronics (Thailand): Expect impressive 2Q10 result BUY; Bt26.75; DELTA TB; Price Target: 12-Month Bt30.91 (Prev Bt28.82) DBS Group Research . Equity 4 August 2010 Regional Morning Pack Regional Morning Pack Page 2 Market Data Earnings Gth (%) PE (x) 10F 11F 10F 11F Singapore 20.0 14.3 14.7 12.8 Malaysia 18.4 18.0 15.8 13.4 HK HSI 22.2 15.5 14.3 12.4 HK HSCCI (Red) 19.3 8.3 16.4 14.9 HK HSCEI (H) 27.1 18.1 12.6 10.7 Thailand 11.5 15.5 12.8 11.1 Indonesia 15.8 18.5 15.8 13.4 Source: DBS Vickers Key Indices Indices Closed as of 3 Aug 10% chg vs previous close YTD (%) QTD (%) MTD (%)Asia Shanghai A 2,673 1.3 -18.411.411.4SET 863 0.9 17.58.38.3Taiex 7,912 1.9 -3.47.97.9MXFEJ index 459 2.0 2.08.18.1JCI Index 3,059 -0.3 20.75.05.0STI 3,025 1.2 4.46.76.7HSCCI Index 4,117 2.4 1.47.87.8Hang Seng 21,413 1.8 -2.16.46.4KOSPI 1,782 1.3 5.94.94.9HSCEI Index 12,181 2.3 -4.86.26.2KLCI 1,364 0.2 7.13.83.8Nikkei 225 9,570 0.3 -9.32.02.0PCOMP 3,455 0.8 13.22.42.4BSE Sensex 18,081 1.2 3.52.12.1U.S./Others Dow Jones 10,674 2.0 2.49.29.2S&P 1,126 2.2 1.09.29.2NASDAQ 2,295 1.8 1.28.88.8FTSE 100 5,397 2.6 -0.39.89.8DAX Index 6,292 2.3 5.65.55.5 Source: Bloomberg, DBS Vickers Commodity Indicators Commodities Latest ClosingPrevious ClosingCrude Oil USD/barrel 8381Nickel Spot USD/mt 21,88321,883Coal Spot USD/mt 9595Tin USD/mt 19,88019,880Steel