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Malaysia

PP 7767/09/2010(025354)

Corporate Highlights
V is it Note

RHB Research Institute Sdn Bhd A member of the RHB Banking Group
Company No: 233327 -M

27 April 2010 Share Price Fair Value Recom : : : S$0.86 S$1.35 Outperform (Maintained)
Bloomberg: GENS SP

MARKET DATELINE

Genting Singapore
The Competition Starts Now

Table 1 : Investment Statistics (GENS; Code: G13 ) Net FYE Dec 2009 2010f 2011f 2012f Turnover (S$m) 491.2 2,550.1 3,339.8 3,933.8 Profit ^ (S$m) (167.0) 318.5 439.3 693.0 ^normalised EPS # (cent) (1.4) 2.7 3.8 5.9 Growth (%) (191.7) 290.8 37.9 57.7 PER (x) n.m. 31.6 22.9 14.5 C.EPS* (cent) 3.0 4.0 5.0

Net P/CF (x)
n.m. 8.4 9.4 8.1

P/NTA (x)
3.7 3.3 2.9 2.4

EV/EBITDA (x)
n.m. 16.8 11.8 10.0

Gearing (%)
26.8 50.3 38.0 22.4

GDY (%)
0.0 0.0 0.0 0.0

Straits Times Index

* Consensus Based On IBES

# fully diluted for 2009 rights issue Issued Capital (m shares) Issued Cap (m shares) Market Cap(RMm) – fd for rights Daily Trading Vol (m shs) Market Cap(S$m) 52wk Trading Vol (m shs) Daily Price Range (RM) MajorPrice Range (S$) 52wk Shareholders: Kien Huat Realty Sdn Bhd Major Shareholders: Free float Genting Berhad FYE Dec FYE Dec EPS chg (%) EPS chg (%) Var to Cons (%) Var to Cons (%) Share Price Chart PE Band Chart FY10 FY07 0.7 (6.0) (9.2) (1.7) FY11 FY08 0.8 (5.9) (6.0) (0.0) 3,703.6 11,690.1 25,369.4 5.9 10,579.5 6.40 - 9.25 102.1 (%) 0.55-1.32 41.5 (%) 58.5 54.3 FY12 FY09 0.4 (6.0) 18.6 (14.5)

Marina Bay Sands opening today. Marina Bay Sands (MBS) will open its first phase with 963 out of 2,560 hotel rooms, a portion of its shopping mall, restaurants and the Sands Expo and Convention Centre, the event plaza and the casino today. The Casino Regulatory Authority issued a casino licence to MBS yesterday, 26 April 2010. Although the casino licence has been awarded to MBS, recall that RWS needed a few days to reset the systems back to zero and to get the real “chips” ready before it could officially open, and the casino only opened a full 8 days after the licence was awarded. If we assume a like-for-like scenario, it could be possible that MBS may only be able to open the casino in a few days time. Cannibalisation of market share or growth of gaming market? We believe MBS would likely face similar teething issues as RWS and would also take some time to ramp up the hotel rooms and gaming tables to full capacity. As such, while we do expect to see some visitor cannibalisation at RWS on the opening of MBS, we believe the effect could be a short-term one. In addition, we expect MBS’ opening to actually result in enlarging the gaming market, rather than shrinking the existing market, as we expect to see more visitors coming through to Singapore once both casinos are open, as the “pull factor” would be greater. Seven takeaways from recent visit. We recently visited the company and came away with some updates on RWS’ operations: (1) more than 60% of tables operating currently; (2) no significant drop in visitor numbers since CNY; (3) table drops in line with expectations, mass table limits raised; (4) still waiting for junket approvals; (5) hotels still fully occupied; (6) Universal Studios Singapore tickets doubled up already; and (7) preoperating losses to be lower qoq in 1QFY10. Risks include, amongst others: 1) regulatory risk – with regards to casino licence and junket operators licences and commission structure; 2) new market risk – Singapore is an untested market; 3) competition risk – in view of the liberalisation of the Asian casino industry and revitalisation of previously halted construction plans in Macau; 4) operational risk – relating to RWS, which could end up with higher-than-expected operating costs; and 5) external risk – relating to economic stability and recovery as well as factors like the risk of a serious contagious disease outbreak. Forecasts and investment case. Post-visit, we tweaked our forecasts slightly, by +0.4-0.8% for FY10-12. No change to our S$1.35 fair value, based on blended average of EV/EBITDA (12x FY11 based on regional average) and DCF methodologies. At current price levels, GS’ EV/EBITDA of 11.8x FY11 is now at a 6.3% discount to its regional peers average of 12.6x FY11 and a 20% discount to its Macau peers average. As such, while we do expect some potential downside in share price upon the opening of MBS, we believe downside risk is limited at these levels and advise investors to take this opportunity to buy the shares on weakness. Maintain Outperform.

Relative Performance To FSSTI Relative Performance To KLCI

FSSTI
Genting Singapore

Hoe Lee Leng (603) 92802184 hoe.lee.leng@rhb.com.my Hoe Lee Leng (603) 92802184 hoe.lee.leng@rhb.com.my

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27 April 2010

Marina Bay Sands opening today. Marina Bay Sands (MBS) will open its first phase with 963 out of 2,560 hotel rooms, a portion of its shopping mall, restaurants and the Sands Expo and Convention Centre, the event plaza and the casino today. The Casino Regulatory Authority issued a casino licence to MBS yesterday, 26 April 2010. The rest of the hotel rooms and suites, the Sands SkyPark and additional shops will be opened during the Grand Opening on June 23, while the museum, theaters and the remainder of the shops will open towards the end of the year. The progressive opening is not unlike Resorts World Sentosa’s opening, although RWS only has two main phases of openings, compared to MBS’ three phases. Is MBS ready? Although the casino licence has been awarded to MBS, recall that RWS needed a few days to reset the systems back to zero and to get the real “chips” ready before it could officially open. We note that for RWS, although the licence was actually awarded on 6 Feb, the casino did not open officially until 14 Feb, a full 8 days after. If we assume a like-for-like scenario, it could be possible that MBS may only be able to open the hotel rooms, a portion of its shopping mall, some restaurants and the Sands Expo and Convention Centre today, while the casino may only be opened in a few days time. We believe MBS would also likely face similar teething issues faced by RWS and would also take some time to ramp up the hotel rooms and gaming tables to full capacity. Besides having to do test runs on its hotels like RWS did, all the staff and croupiers have to get licensed by the Casino Regulatory Authority (CRA), and this takes some time, especially now that staff of both the IRs will be in a hurry to get licenced. We understand that not just casino staff, but even cleaners, waiters, general service and corporate staff also have to be licensed by the CRA and this takes some time to obtain, as the CRA are very thorough in its background checks. Cannibalisation of market share or growth of gaming market? As such, while we do expect to see the opening of MBS’ casino to cannibalise visitor numbers at RWS’ casino, we believe the cannibalisation effect could be a short-term one, if MBS faces the same teething problems as RWS did. In addition, we expect MBS’ opening to actually result in enlarging the gaming market, rather than shrinking the existing gaming market. This is because we expect to see more visitors coming through to Singapore once both casinos are open, as the “pull factor” would be greater. We note that Singapore is well on its way to achieving its tourist arrival target growth of 11.5-12.5m for 2010, or up 19-29% yoy. YTD Feb 2010, visitor arrivals have grown by an impressive 21.2% yoy to 1.77m. In Feb 2010 alone, visitor arrivals registered a 24.2% yoy growth, while visitor days reached 3.2m days, a growth of 17% yoy. Official government visitor projections much higher than RHBRI forecasts. We highlight that the official government visitor projection of 11.5-12.5m is 12-23% higher than our projection of just 10.2m for 2010, while the actual visitor numbers recorded in 2009 of 9.67m was also 4% higher than our earlier projections of 9.3m. For the longer term, recall that the Singapore government is targeting tourist arrivals to reach 17m tourists by 2015, which would imply a similar tourist arrival CAGR of 10-11% for the next six years, which we think is not too ambitious a target. Given that one of the key assumptions governing our casino revenue projections is tourist arrivals, a higher tourist arrival forecast would also raise our casino revenue forecasts, as we had assumed about 80% of the tourists to Singapore (80% of tourists are of legal age) visit both casinos at least once during their visits. We note that every additional 1m visitors to Singapore above our forecasted 10m visitors would raise our forecasts by 10-13% for FY10. We are maintaining our total tourist arrival forecasts in our assumptions for now until clearer data points are made available as to actual casino visitor numbers versus tourist arrival figures. We note that based on the actual 2009 tourist arrival numbers, our forecasts now assume only 5.4% yoy growth in tourist arrivals for 2010, versus the government’s target of 19-29% yoy (see Chart 1).

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27 April 2010
Chart 1: Singapore tourist arrivals (RHBRI vs Singapore Government forecast)
14.0 13.0 12.0 11.0 10.0

'ma r a r iv ls

9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2003 2004 2005 2006 2007 2008 2009 2010F 2011F

Tourist Arrivals (RHBRI Est)

Singapore Government Forecast

Source:Singapore Tourism Board, RHBRI

RWS vs MBS. We maintain our belief that RWS and MBS cater to different crowds and would actually complement each other in terms of the offerings and attractions within the IRs (see Table 2). While RWS would likely appeal to the more family oriented visitors, given the various theme parks available and the resort concept, MBS would appeal to the business traveller and the MICE (Meetings, Incentives, Conventions and Exhibitions) market. Note that in our projections, we have assumed that MBS has a larger market share of 51-52% versus RWS’ 48-49% in the first few years of operations. This is based on MBS’ advantage coming from its convenience of location right in the middle of the city centre which will give it exposure to the more urban, wealthier business traveller segment; its VIP/junket experience; and its larger number of hotel rooms available (2,500 versus RWS’ 1,800 rooms) within the IR. Nevertheless, we believe in the longer term, this could even itself out to become equally distributed amongst the two players. This is on the back of Genting’s Worldcard loyalty programme which is likely to be aggressively promoting tie-ups and member benefits for visits to RWS amongst its existing membership base, of about 2.7m. We understand RWS has definitely added (<+10%) to its membership base since opening, although no specific numbers were given.

Table 2: Resorts World @ Sentosa versus Marina Bay Sands Resorts World @ Sentosa Size Investment cost Casino opening date Key attractions 49 ha S$6.59bn 14 Feb 2010 Universal Studios Quest Marine Life Oceanarium Maritime Xperential Museum Equarius Water Park Festive Grand Theatre - 1,600 seats Espa Wellness Sanctuary Hotels Retail Casino - No VIP tables (est) - No mass tables (est) - No slots (est) Source: Company, RHBRI 6 hotels with 1,800 rooms 330,000 sq ft of GLA Not > 15000 sq m and 2,500 machines 50-100 500 1,500 Marina Bay Sands 21 ha S$7.8bn 27 April 2010 MICE facilities - 120,000 sqm Skypark - 1 ha oasis atop hotel Arts and science museum Waterfront Promenade - outdoor event plaza 10,000 people capacity Two theatres - 4, 000 seats Banyan Tree Spa (in Marina Bay Sands Hotel) 3 hotel towers with 2,560 rooms 800,000 sq ft of GLA Not > 15000 sq m and 2,500 machines 70-100 600 1,600

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27 April 2010

Chart 2 : View of Marina Bay Sands (Three Hotel Towers and Sky Park)

Source: RHBRI (@ Apr 16, 2010)

Chart 3: MBS theatres under construction

Chart 4: MBS construction in progress

Source: RHBRI (@ Apr 16 2010)

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27 April 2010

Chart 5 : View of Marina Bay Sands – theatres and museum (@ April 16)

Source: RHBRI (@ Apr 16 2010)

Update on RWS

Seven main takeaways from recent visit. We recently visited the company and came away with some updates on RWS’ operations: (1) more than 60% of tables operating currently; (2) no significant drop in visitor numbers since CNY; (3) table drops in line with expectations, mass table limits raised; (4) Still waiting for junket approvals; (5) hotels still fully occupied; (6) Universal Studios Singapore tickets doubled up already; and (7) preoperating losses to be lower qoq in 1QFY10. More than 60% of tables operating currently. We understand RWS has opened more than 300 gaming tables already (out of a maximum of 500 and up from 270 tables in mid-Feb 2010) and plans to ramp up the table openings to the maximum by June 2010, or as and when license for the dealers/croupiers are obtained. In terms of slots, RWS now has slightly below 1,500 machines which are operational. We understand that RWS have hired about 9,300 staff already currently (out of a targeted total of 10,000 staff and up from 8,000 staff at end-Dec 09), out of which about 25-30% is for the casino. No significant drop in visitor numbers. According to management, there has been no significant drop in visitor numbers since the Chinese New Year opening, with about 20,000-30,000 visitors per day. We understand the crowd is made up of Singaporeans (40%), Malaysians (30-40%) and other foreigners from China and Indonesia, amongst others. We understand also, that out of the Singaporeans that have visited, approximately 10-15% have purchased the annual pass, which we believe is a relatively significant number. Despite this statistic, we would be unable to gauge the number of annual passes sold so far, given that repeat visits by the same person would also be included in the daily visitor count. Table drops in line with expectations, mass table limits raised. We understand that the amount of money spent per bet on the tables and slots have been better than expected so far, particularly for the slots, while the table limits for the grind market have even been raised to as high as S$50/bet now (from as low as S$20/bet previously). However, we note that the table limits are quite flexible and can be changed at any point in time, depending on demand and supply factors. For example, during peak periods, table limits are raised and during non-peak periods, reduced. For the VIP tables, table bets have been more erratic, although on the whole, earnings from the VIP market have been within expectations, making up about half of total casino revenue. This is in line with our forecasts, as we have projected a VIP:mass market split of 50:50 for
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27 April 2010 RWS. Luck factor, according to management, has also been within the theoretical levels so far, which we believe, should mean that EBITDA margins could be close to 40% for the entire casino operations, in line with Genting Malaysia’s EBITDA margin over the last few years.

♦ ♦

Still waiting for junket approvals. Junket approvals are still in the process, as “some applications” have already been submitted, although none of them have been licensed yet by the CRA. We understand some of these applications were put in a few months ago, but nothing has been approved yet. Hotels still fully occupied. RWS has opened about 800 hotel rooms already (out of a total of 1,350 in Phase 1, and relatively unchanged from mid-Feb 2010), about 40-50% of which is for the casino patrons, although this is adjusted on a daily basis, in order to maximise room occupancy. The rooms which have not been blocked off for casino patrons, are fully occupied. Management expects all 1,350 rooms to be opened by June for the grand opening. We understand about half of the hotel occupants are Singaporeans, while the other half are foreigners. No numbers were given for RevPAR (revenue per average room) however. In our forecasts, we have assumed RevPAR of S$250 per night while occupancy rate is projected at 83% for FY10, although we expect this to be on a rising trend from the first year of operations. In our assumptions, we have assumed about 60% of the hotel rooms are sold, while 40% are blacked off for casino patrons. Universal Studios Singapore tickets doubled up already. USS is now selling about 6,000 tickets per day (doubled up from 3,000 tickets per day when it first opened) and by June, it expects this to increase to about 12-13,000 tickets per day. Ever since USS opened, the tickets have been fully sold out, and we understand more day trip tickets rather than 2-day passes have been sold. In our assumptions we have projected about 2.5m visitors to USS in FY10, which, if extrapolated over 9.5 months (as USS opened on Mar 18), would translate to 8,650 visitors per day. We think this is a reasonable assumption, given that RWS intends to ramp up the number of tickets sold on a gradual basis over the next few months. Preoperating losses to be lower qoq in 1QFY10. We understand pre-operating losses would be lower in 1QFY10 than the estimated S$74.2m recorded in 4QFY09), given that the IR started operations in phases from mid-Jan 2010 onwards already.

Risks

Risks include, amongst others: 1) regulatory risk – with regards to casino licence and junket operators licences and commission structure; 2) new market risk – Singapore is an untested market; 3) competition risk – in view of the liberalisation of the Asian casino industry and revitalisation of previously halted construction plans in Macau; 4) operational risk – relating to RWS, which could end up with higher-thanexpected operating costs; and 5) external risk – relating to economic stability and recovery as well as factors like the risk of a serious contagious disease outbreak.

Forecasts

Tweaked forecasts slightly. Post-visit, we have just tweaked our forecasts slightly, resulting in a 0.4-0.8% rise in our FY10-12 forecasts.

Valuation and Recommendation

Fair value and Outperform recommendation unchanged. No change to S$1.35 fair value (see Table 3), based on blended average of EV/EBITDA (12x FY11 based on regional average) and DCF methodologies. We highlight that at current price levels, GS’ EV/EBITDA is no longer at a premium to its regional peers, as it is now trading at at EV/EBITDA of 11.8x FY11, which is a 6.3% discount to its regional peers average of 12.6x FY11 and a 20% discount to its Macau peers average of 14.8x FY11 (see Table 6). As such, while we do expect some potential downside in share price upon the opening of MBS, we believe downside risk is limited at these levels and advise investors to take this opportunity to buy the shares on weakness. Maintain Outperform.

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27 April 2010
Table 3: Genting Singapore’s Fair Value Calculation SOP Valuation Sales & Marketing & IT DCF UK DCF RWS Rank stake Net cash/(debt) Sum of Parts No. of shares (m) SOP/share (S$) EV/EBITDA Valuation FY11 EBITDA (S$m) EV/EBITDA Target (x) EV (S$m) No Shares (m) Implied Fair Value (S$) BLENDED AVERAGE FAIR VALUE (S$) (SOP and EV/EBITDA) 1,009.4 12 12,113.2 11,690.1 1.04 1.35 Global EV/EBITDA FY11 Average S$m 188.1 847.5 19,410.2 103.0 (1,108.0) 19,440.8 11,690.1 1.66 Basis 12x CY10 DCF at WACC of 8.7% DCF at WACC of 8.4% Market value of 10% stake @ 4 Mar 10 At end-4Q09

Table 4. Earnings Forecasts FYE Dec (S$m) FY09a Turnover Turnover growth (%) EBITDA EBITDA margin (%) Depreciation Net Interest Associates EI 491.2 (22.1) (52.1) (10.6)

FY10F 2,550.1 419.1 730.1 28.6

FY11F 3,339.8 31.0 1,009.4 30.2 (74.3) (276.4) (8.9) 549.8 (110.5) 439.3 439.3 439.3

FY12F 3,933.8 17.8 1,126.7 28.6 (76.4) (206.4) (8.9) 834.9 (141.9) 693.0 693.0 693.0

Table 5. Forecast Assumptions FYE Dec RWS Casino Visitor Growth (%) RWS Casino Revenue/Visitor (S$) Genting UK Casino Revenue Gth (%) Free cashflow (S$m)

FY10F 100.0 160 24.3 (299.2)

FY11F 9.9 176 7.2 817.9

FY12F 12.4 185 9.4 996.3

(37.8) (64.4) (56.2) (272.9) (8.9) (8.9) (110.6) Pretax Profit (265.7) 383.8 Tax (11.8) (65.2) PAT (277.6) 318.5 Minorities 0.0 Net Profit (277.6) 318.5 Core Net Profit (167.0) 318.5 Source: Company data, RHBRI estimates

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Table 6 : Global Peer Comparison Company Genting Singapore MGM Mirage Las Vegas Sands Wynn Resorts Melco Crown US Average Crown Ltd Tabcorp Aust Average Melco Int SJM Galaxy Wynn Macau Sands China Macau Average Simple Average - US, Aust & Macau ^ Resorts Genting Malaysia average Dec Dec 2.86 6.70 RM RM FYE Dec Dec Dec Dec Dec Jun Jun Dec Dec Dec Dec Dec Price * 0.86 15.89 25.12 89.50 4.85 8.06 6.87 3.49 5.17 3.88 11.68 12.62 Currency SG$ US$ US$ US$ US$ A$ A$ HK$ HK$ HK$ HK$ HK$ PER (x) # FY10f FY11f 31.6 n/a 89.7 149.2 n/a 119.4 21.8 8.6 15.2 n/a 14.8 38.8 22.0 40.7 29.1 48.2 13.6 14.6 14.1 22.9 n/a 41.9 86.9 n/a 64.4 17.1 8.6 12.9 79.3 12.9 24.3 18.5 32.6 33.5 35.8 12.8 11.9 12.4 EV/EBITDA (x) FY10f FY11f 16.8 14.9 16.8 14.9 13.2 15.0 10.4 5.9 8.1 31.0 6.9 14.9 15.3 16.5 16.9 14.6 5.9 4.2 5.1 11.8 13.1 12.5 12.9 11.2 12.4 9.3 5.7 7.5 31.4 6.0 9.8 12.7 14.2 14.8 12.6 5.0 4.1 4.6 P/NTA (x) FY10f FY11f 3.3 1.9 4.3 3.3 1.0 2.6 1.8 1.2 1.5 0.6 2.7 1.8 11.1 3.4 3.9 3.0 1.6 2.0 1.8 2.9 2.0 4.0 3.0 1.0 2.5 1.7 1.2 1.5 0.6 2.4 1.7 7.2 3.1 3.0 2.5 1.5 1.7 1.6

# Cells with n/a indicate the company is projected to record losses * In respective currencies @ 26Apr 2010 ^ Simple averages exclude outliers Source: IBES Consensus & RHBRI Chart 6: GenS Technical View Point

♦ ♦ ♦

The share price of GenS began its rally since Mar 2009 and moved along the UTL, before accelerating to above 1.01 in Sep 2009. After a consolidation phase, the stock broke out the congestion and headed to a high of 1.32 in early Jan 2010. But, the stock encountered a strong profit-taking pressure, and was even dragged down to below the 1.01 level in Feb 2010, and fell out of the supportive UTL. The stock tried to find a support near 0.835 in Mar 2010, but a subsequent technical rebound faded out quickly as it closed back near to the 0.835 critical support of late. Technically, it is facing a critical test near 0.835. Losing this level will exaggerate the selling momentum to the support zone of 0.60 – 0.68 region, while a firm support at 0.835 means a refresh of a possible technical rebound ahead. Another heavy resistance level is near the UTL and the psychological level of 1.01.

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IMPORTANT DISCLOSURES
This report has been prepared by RHB Research Institute Sdn Bhd (RHBRI) and is for private circulation only to clients of RHBRI and RHB Investment Bank Berhad (previously known as RHB Sakura Merchant Bankers Berhad). It is for distribution only under such circumstances as may be permitted by applicable law. The opinions and information contained herein are based on generally available data believed to be reliable and are subject to change without notice, and may differ or be contrary to opinions expressed by other business units within the RHB Group as a result of using different assumptions and criteria. This report is not to be construed as an offer, invitation or solicitation to buy or sell the securities covered herein. RHBRI does not warrant the accuracy of anything stated herein in any manner whatsoever and no reliance upon such statement by anyone shall give rise to any claim whatsoever against RHBRI. RHBRI and/or its associated persons may from time to time have an interest in the securities mentioned by this report. This report does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The securities discussed in this report may not be suitable for all investors. RHBRI recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial adviser. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives. Neither RHBRI, RHB Group nor any of its affiliates, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of this report. RHBRI and the Connected Persons (the “RHB Group”) are engaged in securities trading, securities brokerage, banking and financing activities as well as providing investment banking and financial advisory services. In the ordinary course of its trading, brokerage, banking and financing activities, any member of the RHB Group may at any time hold positions, and may trade or otherwise effect transactions, for its own account or the accounts of customers, in debt or equity securities or loans of any company that may be involved in this transaction. “Connected Persons” means any holding company of RHBRI, the subsidiaries and subsidiary undertaking of such a holding company and the respective directors, officers, employees and agents of each of them. Investors should assume that the “Connected Persons” are seeking or will seek investment banking or other services from the companies in which the securities have been discussed/covered by RHBRI in this report or in RHBRI’s previous reports. This report has been prepared by the research personnel of RHBRI. Facts and views presented in this report have not been reviewed by, and may not reflect information known to, professionals in other business areas of the “Connected Persons,” including investment banking personnel. The research analysts, economists or research associates principally responsible for the preparation of this research report have received compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors and firm revenues. The recommendation framework for stocks and sectors are as follows : Stock Ratings Outperform = The stock return is expected to exceed the KLCI benchmark by greater than five percentage points over the next 6-12 months. Trading Buy = Short-term positive development on the stock that could lead to a re-rating in the share price and translate into an absolute return of 15% or more over a period of three months, but fundamentals are not strong enough to warrant an Outperform call. It is generally for investors who are willing to take on higher risks. Market Perform = The stock return is expected to be in line with the KLCI benchmark (+/- five percentage points) over the next 6-12 months. Underperform = The stock return is expected to underperform the KLCI benchmark by more than five percentage points over the next 6-12 months. Industry/Sector Ratings Overweight = Industry expected to outperform the KLCI benchmark, weighted by market capitalisation, over the next 6-12 months. Neutral = Industry expected to perform in line with the KLCI benchmark, weighted by market capitalisation, over the next 6-12 months. Underweight = Industry expected to underperform the KLCI benchmark, weighted by market capitalisation, over the next 6-12 months. RHBRI is a participant of the CMDF-Bursa Research Scheme and will receive compensation for the participation. securities, subject to the duties of confidentiality, will be made available upon request. Additional information on recommended

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