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PP16832/01/2013 (031128)

Malaysia
Sector Update
21 February 2012

Overweight (unchanged)

Oil & Gas


The golden age of gas?
Maintain sector Overweight. The recent talk on gas supply dynamics given by the President of the International Gas Union (IGU), Datuk (Dr) Abdul Rahim, reaffirmed our positive views of the natural gas market. Malaysia will embrace LNG imports this July to address supply bottlenecks. Against this backdrop, service providers in the gas supply chain would benefit. We are Overweight on the sector on expectations of continuous positive newsflow benefiting the service providers. Natural gas: A commodity growing in importance. Natural gas is set to overtake coal as the second-largest fuel source by 2030. Demand growth of 2% p.a. is the highest among the fuels (average: 1.2% p.a.). At this rate, gas would account for 25% of total generation energy mix by 2035 (2010: 23%). Asia, notably China, is the largest consumer of gas. Against this backdrop, LNG trade is set to expand at a rapid pace, as output grows to 594m tpa by 2020 (2008: 376m tpa). Australia will be the largest LNG supplier in future, with a forecasted production of 100m tpa, overtaking Qatars 77m tpa. Malaysia is embracing structural changes in the natural gas dynamics. Despite being a net exporter of natural gas with the 15th largest gas reservoir in the world, Malaysia will receive its first imports in 2012. Up to 3.8m tpa of gas (from the Lekas regasification plant in Melaka) will be injected into the domestic pipeline system. This would effectively lift gas supply by 24% and single-handedly address the gas curtailment issue which has plagued the power sector since 2011. Another 3.8m tpa of LNG supply will come in by 2017 as PETRONAS commercialises its RAPID project in Pengerang, Johor. Domestic gas price structure is set to transform. As gas supply from imports increases, domestic average selling prices (ASPs) for natural gas will rise as subsidies are set to fall. Malaysias current gas prices are among the lowest in Asia. Plans are in place for a systematic RM3/mmBtu adjustment in price every six months. Based on the projection, Malaysia will pay gas prices equal to market rates by 2016. Nevertheless, the price increase is not cast in stone just yet. A strong political will is required to execute this exercise. Championing the champion. The 3.8m tpa of LNG capacity from the Lekas regasification plant (from Jul 2012) would add 505mmscfd of gas into the Peninsular Gas Utilisation (PGU) system. This will effectively lift domestic gas supply by 24% (based on 2,066 mmscfd of gas transmitted for 2011). Longer-term growth will be further supported by the second and third regasification plants that will be constructed in Johor and Sabah, which would raise supply by another 3.8m tpa come 2017 (from the Johor plant alone).

Wong Chew Hann, CA wchewh@maybank-ib.com (603) 2297 8688

Summary of consensus valuations (calenderised)


Mkt cap (RMm) Petronas Gas 32,530.4 PGN* 87,875.5 Source: Bloomberg; * IDR currency
Kim Eng Hong Kong is a sub sid iar y of Malayan B anking B erh ad

Company

Price (RM) 16.44 3,625

EPS (sen) 12F 13F 72.4 72.7 282.0 310.7

EPS Grth (%) 12F 13F 0.0 0.5 6.3 10.2

PE (x) 12F 13F 22.7 22.6 12.9 11.7

DPS (sen) 12F 13F 50.0 50.0 151.5 162.8

Div Yield (%) 12F 13F 3.0 3.0 4.2 4.5

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Oil & Gas

Lets talk about gas


We recently hosted a Gas Sector Outlook session with Datuk (Dr) Abdul Rahim Hashim, President of the International Gas Union (IGU) and Malaysian Gas Association, as the keynote speaker. The topic of the presentation was The transformation of the global gas market and the emerging gas scenarios in Malaysia. Key highlights are as follows. Demand for natural gas is strong. Natural gas is set to grow nearly twice as fast relative to the total global energy mix. The 2.0% p.a. growth up to 2035 will be the strongest among other energy sources (i.e. oil, coal, biomass, nuclear, hydro; total energy growth: 1.2% p.a.). It is estimated that natural gas should overtake coal as the second-largest energy fuel after oil by 2030. Against this backdrop, natural gas share of the total energy mix will rise to 25% by 2035 (from 23% in 2010). The key drivers to higher gas demand. The appetite for gas from th Asia, notably China, is strong. Under its 12 Five-Year Plan, the China market alone will make up nearly 30% of global gas growth. The recent nuclear energy crisis in Fukushima, Japan also expedited natural gas as a preferred substitute. Global LNG trade is also developing rapidly, as trade volume grows and becomes more flexible (i.e. more short- to medium-term contracts vs. long-term trades). The widespread development of unconventional gas (i.e. coal-bed methane, shale) as well as the lower cost of production (i.e.USD3-9/mmBtu) also aided growth. The global LNG outlook. The share of LNG in global energy markets is set to grow from 31% in 2008 to 42% by 2035, as volume traded more than doubles over the projection period. On the supply side, global LNG output is set to grow by 55% from 376m tpa in 2010 to 594m tpa in 2020. Australia is well placed to become the LNG leader by 2020, overtaking Qatar as the largest producer.
World primary energy demand by fuel
(mtoe)
5,000 4,000 Oil Gas Coal Biomass Nuclear Other renewables
OECD total Middle East India

Natural gas consumption by region


Hydro
China

3,000
Latin America

2,000 1,000

Russia Africa Rest of the world

0 1980
Source: IGC

1990

2000

2010

2020

2030

2035

100

200

300

400

500

600 (bcm)

Sources: IEA, OECD

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Oil & Gas Global LNG supply-demand outlook


(bcma)

Sources: BP Statistical Review 2011, EIA, GIINGL, Booz & Company

Rising LNG share in the world gas trade


(bcm)

Pipelines (LHS)

LNG (LHS)

Share of LNG (RHS)

(%)

1200

50

900

40

600

30

300

20

0 2000
Source: IGU

10 2008 2020 2035

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Oil & Gas

Malaysias natural gas and LNG perspective


Reserves. Malaysias geological gas reserves stood at about 82 trillion th cubic feet (tcf) in 2011 and the country is reputed to have the 15 largest reservoir in the world, amounting to 1.3% of global reserves. Approximately 63% of the gas reserves are located offshore Sabah (15%) and Sarawak (48%), with offshore Peninsular Malaysia (primarily Terengganu) accounting for the remaining 38%. Production. Malaysias natural gas production stood at 2.0 tcf (7,021 mmscfd Sabah: 422mmscfd (6%), Sarawak: 3,904mmscfd (56%), Peninsular Malaysia: 2,695mmscfd (38%)) in 2011, delivering about 2% of global natural gas production. Based on these statistics, Malaysias production life cycle is theoretically 34 years.
Malaysias natural gas reserves (tcf)
83
82 81 81.4 81.3 80.6 80.6
1.8

Malaysias natural gas production (tcf)


82.4
2.0 1.92 1.9 1.97 1.97

1.92

1.95

1.98

1.91

80.5
79.7

80 79
78 77

1.7

78.0
1.6
1.5 1.4

1.66

76 75
2004 2005 2006 2007 2008 2009 2010 2011

2004

2005

2006

2007

2008

2009

2010

2011

Sources: PETRONAS, Maybank-IB

Sources: Department of Statistics, Maybank-IB

Consumption. 2,066 mmscfd of gas (38% of production) was injected into Petronas Gas PGU system in 2011, of which 672 mmscfd of the gas flow was delivered from the Malaysia-Thailand Joint Development Area {JDA} (373mmscfd), West Natuna (211mmscfd) and PM3 CAA (88mmscfd) fields. Of the total injected into the PGU, the power sector (TNB and IPPs) consumed 1,054 mmscfd of gas 124 mmscfd of gas was exported to Singapore 888 mmscfd of gas was allocated to the non-power industry Gas Malaysias portion totaled 346 mmscfd PETRONAS clients and its internal consumption took up the remaining 542 mmscfd

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Oil & Gas Natural gas supply chain in Peninsular Malaysia (in mmscfd)
Offshore Peninsular
2 ,023 T NB TN B 3 6 9 (35%)

Power s ector
1 ,054 (51%)

Imports PM3 CAA


88

IPPs IP Ps
6 8 5 (65%)

PETRONAS (Gas wholesaler)

Petronas Gas (through PGU system)


(Processing and transmission)

Export to Singapore
1 2 4 (6%)

PETRONAS P E TRONAS c us tomers customers


(including internal consumption) 5 4 2 (61%) G a s Malaysia
3 4 6 (39%)

Wes t N atuna
211

2 ,066

N on-power Non-power s ec tor se ctor


8 8 8 (43%)

Ms ia Thai Joint Dev. Area


373

Sources: Various, Maybank-IB

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Oil & Gas

Malaysias natural gas demand-supply outlook


Diminishing: Domestic natural gas production. Production growth has been relatively flat over the past five years, owing to maturing reserves and the absence of new gas field discoveries offshore Peninsular Malaysia. Based on Wood Mackenzies findings, gas supply from Peninsular Malaysias fields (which supplies to domestic needs) is anticipated to plateau from 2015-17, and drop sharply from 2019-21. Rising: Domestic natural gas consumption. At the same time, domestic daily consumption of natural gas has been rising, by 1% p.a. over the last four years, owing to it being the more efficient and affordable source of energy relative to oil and biomass. However, growth has been constrained by the limited availability of supply.
Malaysias gas production forecast (2010-25) mmscfd
(mmscfd)
7.0 6.0 5.0 4.0 3.0 5.9 5.9 5.8 5.7 5.6 5.4 5.3

5.1

4.7

4.3

3.9

3.5 2.9 2 1.7

2.0 1.0 0.0


2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

1.5

2023

2024

2025

Sources: Wood Mackenzie, Maybank-IB

(i)

LNG regas is a game-changer for long-term supply

LNG imports should address gas shortage concerns. The import of LNG is touted as the long-term solution to feeding Malaysias growing gas demand. The first LNG imports amounting to 3.8m tpa will be injected into the system by Jul 2012, and up to 7.6m tpa of LNG will flow into the PGU by 2017.
Peninsular Malaysias average gas production & total curtailment days
(mmscfd) 2,500 2,193 2,000 1,500 1,000

Kerteh- ave.production (LHS)


2,099 2,012 2,058

JDA- ave.production (LHS)

Curtailment days (RHS)

2,200 2,212 1,999

2,124 2,146 2,140 2,109

(days) 35 30

1,923 2,005 1,936 1,908 1,946 1,892 1,899 1,929 1,979 1,953 1,846 1,785 1,807

25 20 15
10

500
0 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11

5 0

Sources: Energy Commission, Maybank-IB

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Oil & Gas Malaysias generation fuel mix


(%) 100 90 80 70 32.6 41.2 45.2 42.4 38.8

0.3
7.1 6.3

1.4 4.7

0.2 4.0

3.4

0.4 3.3

0.3 3.9

0.1 4.9

Gas
6.2

Coal
5.9

Hydro
5.8

Oil & Distillates


1.2 6.7 1.0 5.9
4.6 7.3

Interconnection
1.9 7.5 6.5 7.5 6.4 10.5 6.9

0.9 11.6 4.6

0.1 6.6 4.4

0.6 9.9 4.4

8.1 4.5

8.1 5.4

6.4 6.0

0.6 5.9 6.5

43.2

44.6

40.3

38.0

42.4

41.7 49.8

48.2

40.5

60
50 40 30 20 10 0 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11

41.1

44.9

46.8 42.8 45.9

43.5

44.1

46.4

44.6

45.3

60.3

52.1

50.7

50.5

54.2

57.6

51.1

54.7

55.8

52.0

52.5

42.3

44.9

47.6

44.9

41.1

37.9

37.0

42.1

42.2

43.3

40.1

42.5

41.1

Apr-11

Jul-11

Oct-11

Sources: Energy Commission, Maybank-IB

Malaysia is committed to 7.6m tpa of additional LNG by 2017. 7.6m tpa of LNG equates to 1,011 mmscfd of natural gas, or 40% of the gas supply injected into the PGU system in 2010. This should offset the fall in domestic fields gas up to 2017 while maintaining Malaysias gas supply level at 5,977 mmscfd. LNG supply commitment is already underway. We understand that PETRONAS is already working towards ensuring availability of LNG supply from various suppliers (i.e. Australia, Europe and Middle East), both on short and long-term contracts.
PETRONAS LNG import commitments Seller (Country) Scheduled delivery date
GDF Suez (France) Qatargas(Qatar) Gladstone LNG (Australia) Total Sources: Various, Maybank-IB Aug 2012 2013 2014

Duration (year)
2.5 20 20

Quantity (m tpa)
2.5 1.5 3.5 7.5

Malaysia is set to embrace third-party gas importation by Jul 2012. The first LNG import will be injected into the system by Jul 2012. In order to receive LNG that is required to be subsequently regassed for transmission through the PGU system, a regasification plant and receiving terminal (i.e. floating storage units, subsea and onshore pipelines) is required. First regas project being built in Melaka with a 3.8m tpa capacity. Construction of the regas facilities aka Project Lekas, developed by Petronas Gas at Sungai Udang, Melaka is in progress. Based on the LNG delivery schedule, Melakas regas plant should hit its maximum capacity in 2012. South Johor has been identified to be the second regas base. We reckon the planned regas plant, which will be larger in size than the one in Melaka, will support PETRONAS USD20b Refinery and Petrochemical Industrial Development (RAPID) and the Iskandar Development Region (IDR) programmes.

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Oil & Gas

A third regas terminal in Tawau? This would support a gas-fired power plant there. In terms of size, we reckon the regas terminal would be the smallest when compared against the Melaka and Johor facilities.
Planned regas terminals capacity

Vietnam

3.0 5.0

Thailand
Phillippines

5.3
6.0 7.6 10.5

Singapore
Malaysia Indonesia

0.0
Source: Petronas

2.0

4.0

6.0

8.0

10.0

12.0

(ii)

New field, new gas, new growth

Malaysia to get additional gas from new fields by 2013. Notwithstanding the regas programmes and new plants in Melaka, Johor and Sabah which involve LNG imports, PETRONAS and its Production Sharing Contract (PSC) partners will spend about RM15b to develop a cluster of gas fields offshore Peninsular Malaysia. Gas projects will be on an accelerated basis. PETRONAS expects the first delivery of 100 mmscfd of gas by early 2013, and 250 mmscfd by 2015 (3-9% of domestic consumption), from these new fields.
Malaysias gas production forecast (2010-25) mmscfd
(mmscfd)
7.0
6.0 5.0 5.9 5.9 6.1 6.3 0.1 0.3 0.5 6.2 0.1 0.5

Gas supply from PM fields


6.2 0.3 0.5

LNG Imports 6.4


0.3 0.3 1.0 6.0

New PM fields 5.6


5.2 4.8 4.2

6.1
0.3 0.5

3.3

3.0

2.8

0.3
1.0

1.0

0.3
0.3 1.0 1.0 0.3 1.0 0.3 1.0 2.9 0.3 1.0 1.7 2024F

4.0
5.9 3.0 2.0 1.0 2010 2011F 2012F 2013F 2014F 2015F 2016F 2017F 2018F 2019F 5.9 5.8

5.7

5.6

5.4

5.3

5.1

4.7

4.3

0.3

3.9

3.5

1.0
1.5 2025F

2.0
2020F 2021F 2022F 2023F

Sources: Wood Mackenzie, Maybank-IB

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Oil & Gas Peninsular Malaysia gas supply outlook

Source: PETRONAS

Malaysias natural gas market reform


From a regulated to an open market. Malaysia is in the process of a structural transformation as it takes in LNG imports. An operating framework has been mooted to reform the domestic market. With the: (i) gas supply, (ii) transmission pipeline and regasification facilities, and (iii) third-party access transportation tariff already in place, the natural gas pricing mechanism is the next item to be addressed. Gas subsidy will be gradually removed over the next five years. The proposed reform by the Economic Planning Unit (EPU) will result in natural gas prices being systematically increased by RM3.00/mmBtu every six months until it meets market prices by 2016. The systematic lift in ASP is aimed at eliminating the potential effect of demand destruction for gas. However, execution will be a challenge. While the proposal is ideal, implementation is a challenge, for it requires strong political will as it would impact the socio-economic outlook. As it is, it has already experienced hiccups. The second planned price hike has missed the Dec 2011 deadline, and the next revision in Jun 2012 too is likely to face delays. The last revision was undertaken in Jun 2011. Two-tier natural gas pricing? One option, we reckon, is for the natural gas resources from Peninsular Malaysia fields to be subjected to the EPU price structure, while the LNG import could be immediately priced at market rates (i.e. two-tier pricing). The other likely scenarios would be to have single-tier pricing for both sources of supply (i.e. Peninsular Malaysia fields and LNG import), together with either adoption of the EPU pricing structure or an entirely new tariff. Of these scenarios, we think the two-tier gas price structure is more likely to be implemented.

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Oil & Gas Gas subsidy rationalization reform

Sources: EPU, PMs Department, PETRONAS

The original schedule for Msia to get to market pricing by 2016


(RM/ mmbtu) 50 42.35 40 33.35 39.35 36.35 35.05 32.05 34.70 31.70 28.70 25.70 22.70 19.70 16.70 13.70 10.70 6.4 0 Mar-03 Aug-08 Mar-09 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 38.05 40.70 Power Sector Gas M'sia Non-power sector 45.35

South East Asia end-user gas price Country Vietnam Malaysia Indonesia Thailand Singapore Power 3.38 4.57 5.67 7.71 17.99 Industry (USD/ mmBtu) 8.31 6.12 6.50 13.24 18.46 4.93 1.55 0.83 5.53 0.47 Spread

41.05

30.35
30 23.88 20 11.32 10 9.40 14.31 17.99 15.35 11.05 18.35 14.05 24.35 21.35 17.05 20.05 27.35 23.05 26.05

37.70

29.05

Sources: PETRONAS, Maybank-IB

Sources: Various

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Oil & Gas

APPENDIX 1
Definition of Ratings
Maybank Investment Bank Research uses the following rating system: BUY HOLD SELL Total return is expected to be above 15% in the next 12 months Total return is expected to be between -15% to 15% in the next 12 months Total return is expected to be below -15% in the next 12 months

Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.

Some common terms abbreviated in this report (where they appear):


Adex = Advertising Expenditure BV = Book Value CAGR = Compounded Annual Growth Rate Capex = Capital Expenditure CY = Calendar Year DCF = Discounted Cashflow DPS = Dividend Per Share EBIT = Earnings Before Interest And Tax EBITDA = EBIT, Depreciation And Amortisation EPS = Earnings Per Share EV = Enterprise Value FCF = Free Cashflow FV = Fair Value FY = Financial Year FYE = Financial Year End MoM = Month-On-Month NAV = Net Asset Value NTA = Net Tangible Asset P = Price P.A. = Per Annum PAT = Profit After Tax PBT = Profit Before Tax PE = Price Earnings PEG = PE Ratio To Growth PER = PE Ratio QoQ = Quarter-On-Quarter ROA = Return On Asset ROE = Return On Equity ROSF = Return On Shareholders Funds WACC = Weighted Average Cost Of Capital YoY = Year-On-Year YTD = Year-To-Date

Disclaimer
This report is for information purposes only and under no circumstances is it to be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that income from such securities, if any, may fluctuate and that each securitys price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.Accordingly, investors may receive back less than originally invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report. The information contained herein has been obtained from sources believed to be reliable but such sources have not been indepe ndently verified by Maybank Investment Bank Berhad and consequently no representation is made as to the accuracy or completeness of this report by Maybank Investment Bank Berhad and it should not be relied upon as such. Accordingly, no liability can be accepted for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Maybank Investment Bank Berhad, its affiliates and related companies and their officers, directors, associates, connected parties and/or employees may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice. This report may contain forward looking statements which are often but no t always identified by the use of words such as anticipate, believe, estimate, intend, plan, expect, forecast, predict and project and statements that an event or result may, will, can, should, could or might occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forwardlooking statements. Maybank Investment Bank Berhad expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events. This report is prepared for the use of Maybank Investment Bank Berhad's clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written cons ent of Maybank Investment Bank Berhad and Maybank Investment Bank Berhad accepts no liability whatsoever for the actions of third parties in this respect. This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

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Oil & Gas

APPENDIX 1
Additional Disclaimer (for purpose of distribution in Singapore)
This report has been produced as of the date hereof and the information herein maybe subject to change. Kim Eng Research Pte Ltd ("KERPL") in Singapore has no obligation to update such information for any recipient. Recipients of this report are to contact KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), KERPL sh all be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law. As of 21 February 2012, KERPL does not have an interest in the said company/companies.

Additional Disclaimer (for purpose of distribution in the United States)


This research report prepared by Maybank Investment Bank Berhad is distributed in the United States (US) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Kim Eng Securities USA, a brokerdealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Kim Eng Securities USA in the US shall be borne by Kim Eng. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the US. This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. This report is not directed at you if Kim Eng Securities is prohibite d or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Kim Eng Securities is permitted to provide research material concerning investments to you under relevant legislation and regulations. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply if the reader is receiving or accessing this report in or from other than Malaysia. As of 21 February 2012, Maybank Investment Bank Berhad and the covering analyst does not have any interest in in any companies recommended in this Market themes report. Analyst Certification: The views expressed in this research report accurately reflect the analyst's personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.

Additional Disclaimer (for purpose of distribution in the United Kingdom)


This document is being distributed by Kim Eng Securities Limited, which is authorised and regulated by the Financial Services Authority and is for Informational Purposes only.This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

Published / Printed by

Maybank Investment Bank Berhad (15938-H) (A Participating Organisation of Bursa Malaysia Securities Berhad) 33rd Floor, Menara Maybank, 100 Jalan Tun Perak, 50050 Kuala Lumpur Tel: (603) 2059 1888; Fax: (603) 2078 4194 Stockbroking Business: Level 8, Tower C, Dataran Maybank, No.1, Jalan Maarof 59000 Kuala Lumpur Tel: (603) 2297 8888; Fax: (603) 2282 5136 http://www.maybank-ib.com

21 February 2012

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