Regional Morning Notes

Monday, 26 January 20151 Refer to last page for important disclosures. Regional Morning Notes PLEASE CLICK ON THE PAGE NUMBER TO MOVE TO THE RELEVANT PAGE. CHINA Sector Railway Page 2Railway reform to be accelerated in 2015. INDONESIA Strategy Takeaways from Indonesia Regulatory Meetings Page 4Budget is increased by >40% and US$200b backlog in investment. Beneficiaries: INTP, SMGR, PTPP, ADHI, WIKA, ICBP, AISA, LPPF, ROTI, MYOR, and TELE. MALAYSIA Update Malaysian Resources Corporation (MRC MK/BUY/RM1.31/Target: RM2.05) Page 6While fundamentals for value creation are intact, some restructuring proposals may be delayed. SINGAPORE Results CapitaMall Trust (CT SP/SELL/S$2.25/Target: S$2.14) Page 94Q14: Dark clouds looming over the horizon. Frasers Centrepoint Trust (FCT SP/HOLD/S$2.02/Target: S$2.23) Page 121QFY15: A challenging year ahead. Update Keppel Corp Ltd (KEP SP/HOLD/S$8.10/Target: S$8.80) Page 15To take Keppel Land private at S$4.38/S$4.60 share. Keppel Land (KPLD SP /ACCEPT OFFER/S$3.65/Target: S$4.30) Page 18Privatisation offer: A fair deal. THAILAND Update Minor International (MINT TB/BUY/Bt35.00/Target: Bt40.00) Page 214Q14 net profit to be the high point for 2014 at Bt1,698.7m, up 127.6% qoq and 9.1% yoy. Pruksa Real Estate (PS TB/BUY/Bt32.00/Target: Bt38.25) Page 24Business plan for 2015. Thai Oil (TOP TB/HOLD/Bt45.00/Target: Bt43.00) Page 27Poor 4Q14 results expected and priced-in. KEY INDICES Prev Close 1D % 1W % 1M % YTD % DJIA 17672.6 (0.8) 2.0 (2.1) (0.8) S&P 500 2051.8 (0.5) 3.0 (1.8) (0.3) FTSE 100 6832.8 0.5 4.3 3.4 4.1 AS30 5468.2 1.4 3.6 1.8 1.5 CSI 300 3571.7 0.1 (1.7) 3.7 1.1 FSSTI 3411.5 1.2 3.4 1.7 1.4 HSCEI 12260.1 1.8 1.5 6.1 2.3 HSI 24850.5 1.3 3.1 6.4 5.3 JCI 5323.9 1.3 3.4 3.0 1.9 KLCI 1803.1 1.2 3.4 2.2 2.4 KOSPI 1936.1 0.8 2.5 (0.6) 1.1 Nikkei 225 17511.8 1.1 3.8 (1.7) 0.3 SET 1598.3 2.4 5.3 5.8 6.7 TWSE 9470.9 1.1 3.6 2.8 1.8 BDI 720 (4.1) (2.8) (7.9) (7.9) CPO (RM/mt) 2279 (2.0) (3.9) 5.9 (0.8) Nymex Crude (US$/bbl) 46 (1.6) (1.4) (20.2) (14.4) Source: Bloomberg TOP PICKS Ticker CP (lcy) TP (lcy) Pot. +/- ()BUY Sunac China 1918 HK 7.22 9.29 28.7 ICBC 1398 HK 5.84 6.90 18.2 Bank Mandiri BMRI IJ 11,375.00 12,500.00 9.9 Gamuda GAM MK 5.11 5.50 7.6 DBS DBS SP 20.16 22.68 12.5 Pacific Radiance PACRA SP 0.75 1.00 33.3 Bangkok Bank BBL TB 193.50 230.00 18.9 Advanced Info ADVANC 254.00 270.00 6.3 SELL UMWH Holdings UMWH MK 10.74 10.00 (6.9) KEY ASSUMPTIONS GDP (% yoy) 2013 2014 2015F US 1.9 2.7 3.2 Euro Zone -0.4 0.9 1.4 Japan 1.5 1.5 2.0 Singapore 3.9 3.2 3.3 Malaysia 4.7 5.9 5.2 Thailand 2.9 1.5 3.9 Indonesia 5.8 5.2 5.8 Hong Kong 2.9 3.5 3.7 China 7.7 7.2 7.0 2014 2015F 2016F Brent (US$/bbl) 99.45 65 70 CPO (US$/mt) 722 765 788 BDI 1,101 1,300 1,400 Source: Bloomberg, UOB ETR, UOB Kay Hian CORPORATE EVENTS Venue Begin Close Singapore and Indonesia Kuala Lumpur 26 Jan 27 Jan Telecom Analyst Presentation Malaysia 1H15 Strategy Singapore 29 Jan 30 Jan Analyst Presentation Greater China 1H15 Market Strategy Hong Kong 27