PP 7767/09/2010(025354)

1 September 2010
RHB Research

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

M ar k et Up dat e
1 September 2010
MARKET DATELINE

Benchmarking
Positive Funds Flow

♦ Total trading value of FBM100 stocks remains positive. We looked Table 1. FBM100 1M Changes In
at the value of trades for Bursa Malaysia-listed stocks, and more Trading Values (By Sector)
specifically the FTSE Bursa Malaysia top 100 stocks (FBM100), to provide Sector 1M Chg 1M Chg
an indication of the funds flow into the market for the last one month (RMm)# (%)
(1M), three months (3M) and year to date (YTD). Despite our more FBM100 236.0 24.7
cautious views, trading values for the Bursa Malaysia stocks rose by 61% Banks 145.9 69.5
for the YTD. More specifically, funds flows to the FBM100 stocks have Plantation 81.1 71.2
remained positive over the last 1M and 3M, indicating the still-bullish flow Power 71.9 101.8
of liquidity into the equity market. Motor 14.5 122.4
Telecom 13.7 10.7
♦ Funds flow to FBM100 by sector – banks, power and plantations
Construction 12.6 26.1
benefit most. While the change in trading value for the FBM100 stocks
Gloves 5.6 34.9
was positive overall for the YTD (+RM664.9m or 126.4%), the implied
Building mats 0.7 27.5
funds flow benefitted certain sectors like the banks (+RM237.9m), power
Infra (1.8) (5.1)
(+RM103.7m, mostly in Tanjong and TNB), plantation (+RM101.8m) and
Media (3.1) (60.2)
telecom (+RM82.6m, mostly in Axiata) sectors more than others, but this
Others (5.0) (32.1)
is not surprising given the four sectors account for a combined 67.4%
Consumer (9.8) (44.6)
weighting on the FBM100.
O&G (10.5) (31.6)

♦ Sectors that have reversed. In the last 1M and 3M, the funds flow Semicon/IT (11.1) (39.4)

appears to have turned negative for some sectors including infrastructure Gaming (14.2) (12.0)

(as interest in PLUS appears to have peaked), transport and Property (15.3) (52.7)

semiconductor/IT (on fears of a sharper-than-expected global economic Transport (39.2) (59.4)

slowdown), and gaming (due to concerns of a tougher regulatory As at 30 Aug

environment). In contrast, the 1M changes in trading values suggest Source: Bloomberg, RHBRI

more interest in the banks (on better-than-expected quarterly earnings)

and the plantation sector, which saw a significant jump in trading value
Table 2. Top Picks
compared to three months ago following a +5.7% rise in CPO prices over
Price# (RM) FV (RM)
the same period.
Maybank 8.39 9.86
♦ Top stocks by 1M percentage change in trading values. Within the CIMB 7.80 8.40
FBM100, we note that the smaller stocks generally populate the top of the Maxis 5.38 5.75
list in trading activity, we also note that the reversals are more indicative Tenaga 8.86 10.20
of changes in investors’ sentiment. In this regard, we highlight the stocks PLUS 4.20 4.33
with positive reversals i.e. positive 1M percentage change in trading Gamuda 3.46 3.85
values vs. 3M and YTD, include: AEON, JT International, Tan Chong, Hap MRCB 1.66 1.94
Seng Consolidated and Parkson. Stocks with negative reversals include: Media Prima 2.10 2.57
Digi, NCB, MCIL, Boustead, AirAsia, MISC, Puncak Niaga and IJM Land. KPJ 3.45 4.51
Mah Sing 1.82 2.06
♦ Looking forward to 2011? Importantly, this suggests that the investors Faber 2.61 3.82
are already looking beyond the relatively expensive 2010 PER of 16.7x HSL 1.54 1.95
(compared against the post-crisis mean of 16x current year and 15x one- # As at 30 Aug
year forward), and forward to the 2011 PER of 14.7x and 2011 Source: Bloomberg, RHBRI
normalised earnings growth of 14.5%. We note that our corporate
earnings forecasts have largely taken into account the anticipated
slowdown in Malaysia’s estimated GDP growth to 5% in 2011, from 7.3%
in 2010. As it stands, the gain in FBM100 index weighting for the banks Yap Huey Chiang
(603) 92802171
also reflects the robust underlying economic conditions. We thus maintain
yap.huey.chiang@rhb.com.my
our recommendation to focus on the better-rated stocks. Our top picks
are listed in Table 1.
Please read important disclosures at the end of this report.

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 1 September 2010

Positive Funds Flow

♦ Total trading value of FBM100 stocks remains positive. We looked at the value of trades for Bursa
Malaysia-listed stocks, and more specifically the FTSE Bursa Malaysia top 100 stocks (FBM100), to provide an
indication of the funds flow into the market for the last one month (1M), three months (3M) and year to date
(YTD). Despite our more cautious views, trading values for the Bursa Malaysia stocks rose by 61% for the year
to date. More specifically, funds flows to the FBM100 stocks have remained positive over the last month and
three months, indicating the still-bullish flow of liquidity into the equity market and may appear to indicate
investors’ increasing willingness to take on risk. Nevertheless, we note that 30 Aug total trading value for
FBM100 stocks, is back to where it was at the end of Feb (when the FBM100 was at 8,327.57, i.e. 10.3% lower
than where it is now, and likewise for the FBM KLCI which is 11.9% up vs. 28 Feb), after a dismal performance
in Jun and Jul.

Table 3. FBM 100 – Total Value Traded

Value traded
As at as at (RMm) 1M Chg (%) 3M Chg (%) 6M Chg (%) YTD Chg (%) YoY Chg (%)
30-Aug-10 1,191.0 24.7 4.5 -1.3 126.4 20.3
31-Jul-10 955.0 32.5 -10.3 -15.4 81.5 -32.9
30-Jun-10 720.6 -36.7 -35.4 37.0 37.0 -14.6
31-May-10 1,139.3 7.0 -5.6 -21.0 116.5 -34.4
30-Apr-10 1,065.1 -4.5 -5.7 26.3 102.4 -18.7
31-Mar-10 1,115.8 -7.5 112.1 40.5 112.1 72.6
28-Feb-10 1,206.6 6.8 -16.3 21.9 129.3 175.7
31-Jan-10 1,129.3 114.7 33.9 -20.7 114.7 233.8
Source: Bloomberg, RHBRI

♦ Funds flow to FBM100 by sector – banks, power and plantations benefit most. While the change in
trading value for the FBM100 stocks was positive overall for the YTD (+RM664.9m or 126.4%), the implied funds
flow benefitted certain sectors like the banks (+RM237.9m), power (+RM103.7m, mostly in Tanjong and TNB),
plantation (+RM101.8m) and telecom (+RM82.6m, mostly in Axiata) sectors more than others, but this is not
surprising given the four sectors account for a combined 67.4% weighting on the FBM100.

Table 4. FBM100 Funds Flow By Sector

1M Chg 3M Chg YTD Chg 1M Chg 3M Chg YTD Chg 1M Price 3M Price YTD Price
(RMm)# (RMm)# (RMm)# (%) (%) (%) Perf. (%) Perf. (%) Perf. (%)
FBM100 236.0 51.7 664.9 24.7 4.5 126.4 3.6 10.1 11.7
Banks 145.9 28.3 237.9 69.5 8.6 201.4 2.3 7.8 12.6
Plantation 81.1 (41.8) 101.8 71.2 (17.7) 109.2 4.4 11.2 9.9
Power 71.9 44.7 103.7 101.8 45.8 267.1 5.3 8.4 11.8
Motor 14.5 8.9 12.3 122.4 51.0 87.7 2.2 6.8 25.8
Telecom 13.7 6.1 82.6 10.7 4.5 138.4 3.3 10.1 21.9
Construction 12.6 13.8 28.1 26.1 29.2 85.3 (3.3) 4.2 12.8
Gloves 5.6 12.0 (1.8) 34.9 124.4 (7.8) (9.9) 1.0 30.1
Building mats 0.7 (4.9) 0.7 27.5 (60.7) 29.1 5.0 9.0 5.1
Infra (1.8) 25.6 23.2 (5.1) 307.9 216.5 4.5 17.9 16.4
Media (3.1) (0.3) (1.9) (60.2) (14.1) (47.6) (1.8) 6.3 35.6
Others (5.0) (15.0) 4.7 (32.1) (58.6) 79.8 (1.0) (6.6) 1.0
Consumer (9.8) (17.3) (11.6) (44.6) (58.9) (48.8) 0.7 13.4 22.9
O&G (10.5) (27.2) (13.6) (31.6) (54.6) (37.6) (0.5) 14.6 8.9
Semicon/IT (11.1) 12.0 16.6 (39.4) 238.1 3,643.5 (12.9) (21.1) 12.9
Gaming (14.2) 36.8 75.2 (12.0) 54.5 258.6 7.6 15.9 11.7
Property (15.3) (30.2) 0.0 (52.7) (68.8) 0.3 (0.2) 9.0 8.4
Transport (39.2) 0.2 7.0 (59.4) 0.8 35.4 2.9 13.3 18.0
# Note these figures refer to the ringgit value traded for each stock on 30 Aug 2010, 30 Jul 2010, 31 May 2010 and 31 Dec 2009
Source: Bloomberg, RHBRI

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 1 September 2010

♦ Equating trading values and price performances. However, we note that trading value data does not
provide conclusive guidance on the direction of share prices. For example, while the four major sectors
benefitted from absolute funds flow due mainly to size (and by implication, from the market support activities),
these sectors in fact underperformed other smaller sectors like motor, gloves, media and consumer for the YTD.
We also note that the apparent declining trading values for the consumer and oil & gas sectors for all three
periods (1M, 3M and YTD) are contradicted by the generally positive price performances for the stocks within the
two sectors.

♦ Sectors that have reversed. However, the reversals are indicative of changes in sentiment towards a
particular sector, and these include the infrastructure sector (where interest in PLUS appears to have peaked),
semicon/IT and transport sectors (which are likely to remain under pressure in line with concerns of a sharper-
than-expected global economic slowdown). Also, in the last 1M and 3M, the funds flow appears to have turned
negative for gaming due perhaps to concerns of a tougher regulatory environment, although this was partly
offset by the increase in trading values for Genting Bhd, after the strong 2Q performance of subsidiary Genting
Singapore. The 1M changes in trading values also suggest more buying interest in the banks (on better-than-
expected quarterly earnings) and the plantation sector, which saw a significant jump in trading value compared
to three months ago following a +5.7% rise in CPO prices over the same period.

♦ Funds flow by stock. We also examined the trading values of each stock in the FBM100, and sorted the list by
1M percentage change. While we note that the smaller stocks generally populate the top of the list, and some
stocks are ranked highly due to major corporate activity (e.g. Tanjong, Sime Darby, Pos Malaysia and
Mudajaya), we also note that the reversals are probably more indicative of changes in investors’ sentiment. In
this regard, we highlight the stocks with positive reversals i.e. positive 1M percentage change in trading values
vs. 3M and YTD, include: AEON, JT International, Tan Chong, Hap Seng Consolidated and Parkson. Stocks with
negative reversals include: Digi, NCB, MCIL, Boustead, AirAsia, MISC, Puncak Niaga and IJM Land.

Table 5. FBM 100 Stocks - Value Traded

Price Index Share Price Chg Change In Trading Values
Company 30 Aug Wt. Sector 1M YTD 1M 3M YTD YoY
(RM) (%) (%) (%) (%) (%) (%) (%)
1 Aeon Co (M) 5.20 0.17 Consumer 2.0 6.8 1,220 (54) (14) 255
2 WCT 2.83 0.31 Construction - 10.3 559 297 144 90
3 BIMB Holdings 1.26 0.07 Finance (4.5) 5.0 489 481 99 511
4 Batu Kawan 12.02 0.48 Plantations 8.1 22.2 486 5,372 2,784 3,764
5 Amway (Malaysia) 8.00 0.07 Consumer 0.0 13.3 386 243 163 43
6 Tanjong Plc 21.32 1.19 Power 20.8 30.2 368 17 490 33
7 SapuraCrest 2.31 0.27 Oil & Gas 0.9 (5.1) 224 113 (47) 9
8 DRB-Hicom 1.10 0.20 Motor (2.7) 10.1 211 1,672 2,840 589
9 JT International 5.65 0.08 Consumer 4.7 18.2 208 (33) (19) 68
10 Supermax Corp 5.21 0.33 Gloves (16.4) 39.7 204 299 (17) 986
11 Hap Seng Plant 2.41 0.14 Plantations 4.3 7.1 193 210 1,045 12
12 Sime Darby 8.35 6.92 Plantations 7.1 (6.2) 192 29 180 127
13 Pos Malaysia 3.22 0.24 Transport 3.5 50.1 188 183 176 15,663
14 YTL Cement 3.99 0.11 Materials 0.5 (4.2) 157 (43) 463 (41)
15 Tenaga Nasional 8.86 5.32 Power 3.1 6.0 157 81 340 325
16 Mudajaya Group 4.13 0.16 Construction (20.7) (16.4) 130 1,041 410 568
17 UMW Holdings 6.60 1.04 Motor 5.6 6.3 119 66 63 79
18 AMMB Holdings 5.66 2.35 Finance 9.9 13.2 119 59 424 211
19 Public Bank 7.80 7.89 Finance 5.4 23.1 110 (2) 410 (58)
20 Tan Chong Motor 4.75 0.29 Motor 1.5 54.0 98 (19) (21) (5)
21 Ta Enterprise 0.64 0.08 Property (1.5) (6.7) 92 159 (7) (77)
22 KLK 16.96 1.66 Plantations 0.5 5.6 91 (58) 44 229
23 LITRAK 3.21 0.22 Infra 0.6 17.6 89 11,047 44 (78)
24 CIMB 8.39 8.19 Finance 8.4 23.8 84 37 265 158
25 AFG 3.07 0.66 Finance 6.3 16.6 84 (8) 280 424
26 Wah Seong Corp 1.10 0.22 Oil & Gas 1.9 17.8 69 (27) 22 (14)
27 Malayan Banking 12.04 7.82 Finance 0.6 11.6 58 47 36 23
28 IJM Corp 3.46 1.29 Construction 5.6 37.0 57 72 50 27
29 Hap Seng Cons. 2.83 0.13 Others 2.2 19.5 54 (77) (4) (93)
30 KLCC Property 3.30 0.28 Property 3.4 (2.3) 47 (81) 40 (43)
31 O.S.K. Holdings 1.31 0.17 Finance 0.8 (1.7) 45 (20) (42) 142
32 MPHB 2.11 0.29 Others 4.5 16.6 36 57 82 (45)
33 Axiata Group 4.47 5.21 Telecom 4.9 46.6 35 37 296 78
34 Lafarge M Cement 7.48 0.58 Materials 11.0 25.7 35 (58) 19 31

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35 Hartalega Holdings 7.80 0.35 Gloves (4.9) 27.1 28 735 13 110

36 KNM Group 2.00 0.20 Oil & Gas (18.7) (13.2) 27 422 309 134
37 HLFG 6.65 0.53 Finance 2.5 28.2 17 (36) 14 107
38 Genting Bhd 9.45 4.83 Gaming 18.3 29.3 16 108 362 147
39 Starhill REIT 0.85 0.09 Property (1.7) 5.3 15 (7) 122 (7)
40 Parkson Holdings 5.50 0.55 Consumer (0.5) 3.6 15 (69) (66) (45)
41 IGB Corporation 1.85 0.38 Property (1.6) (6.6) 12 (91) 4 (62)
42 PPB Group 17.08 1.86 Plantations (1.5) 11.5 6 (60) 54 24
43 KFC Holdings 10.80 0.30 Consumer - 48.2 5 29,984 6,281 5,635
44 Maxis 5.38 2.23 Telecom 1.7 3.4 5 (47) (1)
45 Plus Expressways 4.20 1.54 Infra 9.4 32.7 0 320 236 (7)
46 Digi.Com 24.74 2.65 Telecom 1.6 18.9 (1) 58 118 65
47 Proton Holdings 4.58 0.23 Motor (0.4) 17.1 (5) (74) 20 (30)
48 NCB Holdings 3.60 0.09 Transport (3.5) 21.0 (7) 219 365 5,059
49 MRCB 1.66 0.29 Construction (1.8) 31.5 (11) (66) 72 (63)
50 UEM Land Holdings 1.67 0.34 Property (1.8) 36.0 (18) (70) 62 (17)
51 IJM Plantations 2.49 0.11 Plantations 2.5 2.4 (21) 33 (82) 50
52 MCIL 0.85 0.13 Media (3.4) 62.8 (30) 236 875 50
53 QL Resources 4.66 0.14 Consumer 5.4 44.1 (30) (21) 17 (56)
54 Genting Plantations 7.29 0.51 Plantations 4.1 17.5 (34) (28) 436 (8)
55 IOI Corporation 5.25 4.83 Plantations 2.5 (2.8) (35) (56) 10 (8)
56 Telekom Malaysia 3.53 1.74 Telecom 5.1 18.7 (35) (20) 95 19
57 YTL Corporation 7.36 1.29 Construction (1.9) 0.8 (38) (52) (15) (79)
58 JCY International 0.97 0.11 Tech (23.4) (38) 291 - -
59 Dialog Group 2.25 0.36 Oil & Gas 1.8 91.3 (40) (58) 253 439
60 Ann Joo Resources 2.56 0.10 Materials 3.4 (6.1) (42) (83) 212 444
61 Berjaya Corp 0.95 0.37 Others (12.0) (25.9) (42) (66) 87 600
62 M’sian Bulk Carriers 2.85 0.16 Transport (2.7) (7.1) (42) (39) (16) 207
63 Boustead Holdings 4.26 0.22 Plantations 9.2 28.1 (44) 284 188 23
64 EEON Capital 6.98 0.36 Finance 0.3 2.0 (44) (90) (91) (78)
65 Genting Malaysia 3.02 1.64 Gaming 6.0 8.8 (45) (22) 164 (24)
66 Kencana Petroleum 1.54 0.10 Oil & Gas - 7.2 (45) (27) (2) (48)
67 Gamuda 4.99 1.24 Construction (1.2) 13.2 (45) (28) 106 (52)
68 Shell Refining Co 0.49 0.27 Oil & Gas (3.0) (37.0) (56) (71) (83) (91)
69 AirAsia 1.68 0.64 Transport 12.8 21.7 (57) 3 53 (5)
70 Sunway City 3.88 0.13 Property 4.3 20.6 (57) (43) (84) (60)
71 YTL Power 2.25 0.90 Power (0.4) 5.6 (57) (42) 121 (73)
72 Petronas Gas 10.50 1.15 Oil & Gas 5.0 10.3 (59) (79) (34) (11)
73 BAT 45.10 1.18 Consumer 3.0 9.6 (61) (60) (2) (56)
74 BHIC 4.28 0.08 Oil & Gas (1.4) (14.9) (62) 30,385 (81) (18)
75 MISC 8.79 2.16 Transport 2.2 10.8 (62) 9 333 948
76 Top Glove Corp 6.07 0.52 Gloves (8.6) 23.6 (68) (39) 120 (13)
77 Hong Leong Bank 8.84 1.03 Finance (1.9) 9.6 (69) (85) (33) (82)
78 Petronas Dagangan 10.76 0.59 Oil & Gas 8.2 27.9 (70) (88) (69) (77)
79 Affin Holdings 3.07 0.42 Finance 0.7 21.8 (73) (71) (27) 215
80 SP Setia 4.33 0.81 Property 3.6 13.5 (73) (41) (0) (59)
81 Puncak Niaga 2.88 0.16 Infra 3.6 (1.3) (74) 48 3 88
82 IJM Land 2.26 0.14 Property (5.8) (3.0) (75) 125 3 (29)
83 MMC Corp 2.53 0.57 Power (2.3) 5.4 (76) (84) (89) (93)
84 Carlsberg Brewery 5.17 0.15 Consumer 0.8 16.8 (76) (32) 2 (79)
85 Mah Sing Group 1.82 0.21 Property (1.1) 18.7 (77) (46) 78 (84)
86 Media Prima 2.10 0.29 Media (3.2) 29.1 (78) (58) (88) 22
87 MAS 2.15 0.40 Transport 0.9 (2.8) (79) (70) (90) (29)
88 Bintulu Port 6.86 0.15 Transport 3.9 9.3 (79) (86) (45) (99)
89 KPJ Healthcare 3.45 0.10 Consumer (5.7) 33.5 (80) (92) (94) (11)
90 RHB Capital 8.69 0.50 Finance 0.1 18.2 (83) (79) 3 (68)
91 UBG 2.22 0.04 Others 1.4 (6.3) (83) (73) (93) (53)
92 Malaysia Airports 5.46 0.33 Transport 6.0 40.7 (84) (34) (20) (39)
93 MPI 5.90 0.09 Tech (2.3) 12.9 (87) (84) (74) 89
94 Star Publications 3.56 0.36 Media 1.1 14.8 (87) (85) 4,177 403
95 Berjaya Sports Toto 4.14 0.77 Gaming (1.4) (3.0) (87) (65) (57) (74)
96 Kulim Malaysia 8.45 0.25 Plantations 6.8 13.9 (88) (88) (79) (97)
97 Guinness Anchor 8.10 0.22 Consumer (0.4) 18.2 (91) (68) (65) (81)
98 Bursa Malaysia 7.17 0.53 Finance 1.8 (8.0) (91) (90) (61) (91)
99 Fraser & Neave 14.20 0.28 Consumer (1.3) 39.1 (91) (78) (63) 37
100 Titan Chemicals 10.74 0.30 Oil & Gas 0.8 4.3 (95) (93) (100) (100)
Source: Bloomberg, RHBRI

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♦ FBM100 weighting changes. Looking at the FBM100 sector weightings, We note that the biggest changes in
sector weightings over the last 1M were for the gaming (+0.57%-pts, mainly due to the jump in Genting Bhd’s
share price following subsidiary Genting Singapore’s strong quarterly results) and banks (+0.17%-pts, from
better performance of the major banks on better-than-expected quarterly earnings) sectors. In contrast, the
biggest losers were construction (-0.20%-pts, on lack of more news flow regarding Government projects) and
rubber gloves (-0.18%-pts on concerns of rising costs and negative impact from the stronger ringgit).

Table 6. Changes To Index Weights By Sector

Sector Weightings (%) Weighting Changes (%)
30 Aug 31 Jul 31 May 31 Mar 1M Chg 3M Chg 5M Chg
Finance 30.51 30.35 30.37 30.19 0.17 0.15 0.33
Plantations 16.99 16.99 17.39 18.55 (0.00) (0.40) (1.56)
Telecom 11.83 11.88 11.69 11.47 (0.05) 0.14 0.36
Power 7.97 7.93 8.22 7.71 0.04 (0.25) 0.26
Gaming 7.24 6.67 6.36 6.16 0.57 0.88 1.08
Construction 4.57 4.77 4.74 4.67 (0.20) (0.17) (0.10)
Transport 4.17 4.19 4.14 4.00 (0.01) 0.03 0.17
Oil & Gas 3.53 3.61 3.45 3.57 (0.08) 0.08 (0.04)
Consumer 3.24 3.34 3.28 3.17 (0.09) (0.03) 0.07
Property 2.46 2.54 2.45 2.51 (0.08) 0.01 (0.05)
Infra 1.93 1.86 1.74 1.68 0.07 0.19 0.25
Motor 1.76 1.78 1.84 1.79 (0.02) (0.08) (0.03)
Gloves 1.19 1.37 1.31 1.38 (0.18) (0.12) (0.19)
Others 0.83 0.90 1.14 1.25 (0.07) (0.31) (0.42)
Materials 0.79 0.76 0.78 0.76 0.03 0.01 0.03
Media 0.78 0.82 0.82 0.82 (0.04) (0.04) (0.04)
Tech 0.20 0.24 0.30 0.32 (0.04) (0.10) (0.12)
Source: Bloomberg, RHBRI estimates

♦ Looking forward to 2011? The stronger trading values of the FBM100 stocks on a 1M, 3M and YTD basis
suggest that investors are already looking beyond the relatively expensive 2010 PER of 16.7x (when compared
against the post-crisis mean of 16x current year and 15x one-year forward), and forward to the 2011 PER of
14.7x and 2011 normalised earnings growth of 14.5%. We note that our corporate earnings forecasts have
largely taken into account the anticipated slowdown in Malaysia’s estimated GDP growth to 5% in 2011, from
7.3% in 2010. As it stands, the gain in FBM100 index weighting for the banks also reflects the robust underlying
economic conditions. We thus maintain our recommendation to focus on the better-rated stocks. Our top picks
are listed in Table 1.

IMPORTANT DISCLOSURES

This report has been prepared by RHB Research Institute Sdn (RHBRI) and is for private circulation only to clients of RHBRI and RHB Investment Bank
(previously known as RHB Sakura Merchant Bankers). 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.

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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 FBM 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 FBM KLCI benchmark (+/- five percentage points) over the next 6-12 months.

Underperform = The stock return is expected to underperform the FBM KLCI benchmark by more than five percentage points over the next 6-12 months.

Industry/Sector Ratings

Overweight = Industry expected to outperform the FBM KLCI benchmark, weighted by market capitalisation, over the next 6-12 months.

Neutral = Industry expected to perform in line with the FBM KLCI benchmark, weighted by market capitalisation, over the next 6-12 months.

Underweight = Industry expected to underperform the FBM KLCI benchmark, weighted by market capitalisation, over the next 6-12 months.

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