Regional Morning Notes

UOBKayHian Regional Morning Notes Wednesday, September 01, 2010 Refer to last page for important disclosures. Page 1 of 29 CHINA Results China Communications Services (BUY/HK$3.88/Target: HK$4.40) Page 2 1H10: In-line results; margins remain under pressure. KWG Property (BUY/HK$5.43/Target: HK$6.83) Page 5 1H10: Building good track record in sales amid market slowdown. Lianhua Supermarket (BUY/HK$30.20/Target: HK$35.00) Page 8 1H10: Restructuring bears fruit. Shenguan Holdings (BUY/HK$8.15/Target: HK$11.20) Page 11 1H10: Net profit soars 72% yoy to Rmb222m on the back of 50% yoy growth in revenue to Rmb475m. Results slightly above our expectations. HONG KONG Sector Property Page 14 Auction results again exceed all expectations and set a new record for Kowloon. Life is getting tougher for developers. Update Cathay Pacific (BUY/HK$19.18/Target: HK$24.00) Page 16 Raising target price on Air China’s upgrade. INDONESIA Results Timah (BUY/Rp2,375/Target: Rp3,000) Page 19 1H10: Results below expectation. We expect a stronger 2H10, underpinned by higher sales volume. SINGAPORE Sector Banking Page 22 Jul 10: Continued expansion. Update Singapore Press Holdings (BUY/S$4.08/Target: S$4.50) Page 24 Worth a trade for FY10’s bumper final dividend - a probable upside of >5% between now and 12 October. THAILAND Economics Page 27 July’s economy grows at a decelerating mom pace. Domestic consumption, private investment and tourism income are expected to play major roles in 2H10. Key Indices Prev Close 1D % 1W %1M % YTD %DJIA 10014.7 0.0 (0.3) (4.3) (4.0) S&P 500 1049.3 0.0 (0.2) (4.7) (5.9) FTSE 100 5225.2 0.5 (0.2) (0.6) (3.5) AS30 4438.8 (1.0) 0.5 (1.5) (9.1) CSI 300 2903.2 (0.4) (0.3) 1.2 (18.8) FSSTI 2950.3 (0.2) 0.9 (1.3) 1.8 HSI 20536.5 (1.0) (0.6) (2.3) (6.1) JCI 3081.9 (0.6) (1.1) 0.4 21.6 KLCI 1422.5 0.8 1.4 4.5 11.8 KOSPI 1742.8 (1.0) (1.0) (0.9) 3.6 Nikkei 225 8824.1 (3.6) (1.9) (7.5) (16.3) SET 913.2 0.4 2.6 6.7 24.3 TWSE 7616.3 (1.6) (4.1) (1.9) (7.0) BDI 2713 0.0 (5.2) 37.9 (9.7) CPO (RM/mt) 2694 0.7 (0.5) 6.4 4.0 Nymex Crude (US$/bbl) 72 (3.7) 0.4 (8.9) (9.4) Source: Bloomberg Top BUYs/SELLs Current Target Pot. +/- Price Price (%) Ticker (lcy) (lcy) Top BUYs China Merchants Bk 3968 HK 20.05 26.50 32.2 CNOOC 883 HK 13.44 17.80 32.4 SJM Holdings 880 HK 7.48 9.40 25.7 Zhuzhou CSR 3898 HK 20.20 26.12 29.3 Hong Leong Bank HLBK MK 8.84 10.00 13.1 WCT WCT MK 2.83 3.40 20.1 OCBC OCBC SP 8.67 11.57 33.4 SATS SATS SP 2.79 3.36 20.4 Swiber Holdings SWIB SP 0.96 1.54 60.4 Bangkok Bank BBL TB 147.50 181.00 22.7 PTT PTT TB 265.0