Vietnam F&B 04 December 2009

BUY
Initial coverage Analyst
Nguyen Thi Ngan Tuyen tuyen.nguyen@kimeng.com.vn (84) 8 838 6636 163

Bibica
Growing Stronger!!!
We are initiating our coverage on Bibica (BBC) with a BUY recommendation and a target price of VND 39,900 per share, pegged at a forward P/E of 11.0x that is at a 30.0% discount to its regional peers. We believe that the discount is justifiable in view of its small market capital and limited regional exposure. A medium-sized confectionary player in Vietnam BBC is a medium-sized confectionary player in Vietnam, which has carved a strong niche in the mid-end confectionary segment. In 2008, the Group was ranked number four in Vietnam with a market share of around 7.2% in the overall confectionary sector. BBC is also the second largest moon-cake manufacturer after Kinh Do.
45 40 35 30 25 20 15 10

Price Target VN Index

VND 30,000 VND 39,900 494.96

Historical Chart
BBC

10000

5000
x100

2009

February March

April

May

June

July

August

September

November

Performance Absolute (%) Relative (%)

1m -14.0 -3.2

3m -28.4 -18.7

6m -2.9 -6.2

but a growing one!!! Despite the increasingly challenging sector outlook, we believe that BBC, by capitalising on the strength of its strategic partner, Lotte Confectionary, is one of the few domestic confectionary manufacturers that are able to withstand the sector competition. In our view, this partnership will enable BBC to expand its market share in the high-end segment going forward. We estimate that the Groups revenue would register a commendable average growth rate of 13.1% in the 2009-2013 period Double digit earnings growth due to better product mix We believe that the entry of Lotte as a strategic partner will help BBC to focus on improving its product mix going forward, which in turn will help to expand its profit margin. Furthermore, BBCs ability to produce Lottes trademark products and distribute them domestically and regionally, which enable it to bypass the challenging new product development phase, will eliminate considerable costs for the Group. We expect BBCs gross margin to increase from 22.8% in 2008 to 28.5% in 2009 and 29.3% in 2010. We have estimated that BBCs overall pre tax earnings would be VND 53.1bn, VND 74.6bn and VND 87.8bn for 2009, 2010 and 2011, respectively.
Year End Dec 31 Sales (VND bn) Pre-tax (VND bn) Net profit (VND bn) EPS (VND) EPS growth (%) PER (x) EV/EBITDA (x) Yield (%) 2007 454.0 33.3 24.4 2,279 (4.5) 13.2 9.7 2008 544.4 21.9 20.9 1,411 (38.1) 21.3 7.0 3.3 2009F 600.0 53.1 44.8 2,905 105.8 10.3 5.1 4.0 2010 681.5 74.6 56.0 3,630 25.0 8.3 3.3 6.7 2011F 775.5 87.8 65.9 4,272 17.7 7.0 2.9 6.7

Stock Information Ticker code Market cap (VNDbn) 52-week high (VND) 52-week low (VND) Shares issued (m) 6m avg d.vol (VNDbn) Free float (%) Major shareholders (%) BBC.VN 462.6 43,000 10,000 15.4 8.8 53.9

VIETNAM

Lotte (38.6) BHV (3.1) PXP (2.5)

Key Indicators ROE (%) Net gearing (%) NTA (VND) Interest cover (x) 8.9 Net cash 33,141 12.0

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Bibica

4 December 2009

A growing confectioner
We initiate our coverage on BBC with a BUY recommendation and a target price of VND 39,900 per share, pegged at a forward P/E of 11.0x, 30.0% lower than its regional peers. We believe that the entry of Lotte as a strategic partner for BBC will provide the Group with a competitive edge over its peers. In our view, this partnership will enable BBC to expand its market share in the high-end segment going forward. The growing domestic confectionary player BBC is a medium-sized confectionary player in Vietnam, which has carved a strong niche in the mid-end confectionary segment. In 2008, the Group was ranked number four in Vietnam with a market share of around 7.2% in the overall confectionary sector. BBC is aiming to increase its market share by 3.0%-5.0% each year with the support of its strategic partner Lotte -- a confectionary giant from Korea. BBC is also the second largest moon-cake manufacturer after Kinh Do.

Figure 1: BBCs product breakdown by market share in 2008

Layer cake Bread Moon cake Cookies Snack Candies Layer cake Bread Moon cake
Source: Company data, EuroMonitor

30.0% 3.3% 12.7% 8.1% 0.2% 25.0% 30.0% 3.3% 12.7%

Improving gross margin by building up brand name and restructuring product portfolio The Group markets its confectionary products under the brand name of Bibica, a popular brand name in the middle-end product segment. In 2008, BBC launched a new brand, Hura, to market its layer cake to high-end consumers. The launch was an instant success among its consumers. We applaud the Groups strategy to strengthen its position in the high-end product segment by capitalising on the technical know-how of its strategic partner, Lotte. This is because the high-end segment typically yields a higher profit margin than the mid-end segment. At present, BBC is in the process of restructuring its product portfolio by shifting towards higher-margin products such as Deposite Candy, Pie Cake and nutritional products. We expect the improved product mix to increase the Groups gross margin from 22.8% in 2008 to an estimated 28.5% in 2009 and 29.4% in 2010, respectively. and developing distribution network BBCs business model is quite similar to Kinh Do and other confectionary players in Vietnam. More than 80.0% of BBCs revenue comes from traditional channels -distributors and outlets. With 40,000 outlets in 2008, the management plans to increase its outlets by 10%-15% each year. In addition, we believe that BBC will leverage on the strength of Lotte to manufacture several products under Lottes trademarks and distribute them not only to the domestic market, but also regional countries. We understand that BBC has produced and distributed several products under the trademark of Lotte (with permission) in late 2009. They include Chocopie, Dream Cake and Dream Pie.

Bibica

4 December 2009

Challenging sector prospect

Favourable underlying fundamentals continue to drive the confectionery sector Strong economic growth, favourable demographics and a low penetration rate remain the key ingredients that will continue to sustain higher per capita consumption in the confectionary market. In addition, we observe that the consumption of confectionary products has become increasingly popular due to the influence of Western culture and rising urbanisation; these two trends have led to increased interest in ready-made confectionary products. According to the Business Monitor International (BMI), Vietnams annual confectionary sales are expected to grow at a compound annual growth rate (CAGR) of 15.1% from USD287.8mn 2008 to USD581.3mn 2013. ... but sector competition to intensify going forward At present, domestic producers supply about 80.0% of the domestic demand. Leading confectionery makers are Kinh Do (including North Kinh Do), followed by Huu Nghi, BBC and Hai Ha. Nonetheless, the sectors competition has intensified upon Vietnams accession to WTO. Although the WTO accession may benefit Vietnamese confectionery exporters, the gradual reduction in import tariffs will reduce the barriers to entry for foreign companies, thus increasing the competition in the domestic confectionary market. Already, a rising number of foreign confectionery giants have entered the domestic market with the removal of trade barriers. Some of them have acquired a significant stake in domestic confectionary producers to leverage on the latters domestic market experience and existing distribution network. BBCs acquisition of Lotte as a strategic partner is representative of such a strategy. On the domestic front, we also observe that the merger and acquisition activities among domestic players have heated up in their bid to strengthen their market positions, diversify their product offerings and accelerate the expansion of their production capacities. Despite the favourable fundamentals outlined above, we believe that the existing domestic confectionary producers, particularly key players like KDC, will find it challenging to increase their respective market shares in view of the intensified competition going forward. We also wish to caution investors that domestic players may not be able to pass on the rising costs to consumers given the increased competitive environment. Therefore, we believe that many domestic players may need to endure shrinking profit margins should production costs rise.

Figure 2: Vietnams confectionery market size

USD mn 600 500 400 300

Figure 3: Vietnams per capita confectionery consumption

kg 1 .35 1 .30 1 .25 1 .20 1 .1 5 1 .1 0

200 100 0 2003 2004 2005 2006 2007 2008 2009e 2010f 2011f 2012f

1 .05 1 .00 0.95 0.90 2 003 20 04 20 05 20 06 200 7 200 8 2009 e 201 0f 201 1 f 201 2f

Source: BMI

Source: BMI, Bloomberg

Bibica

4 December 2009

Earnings outlook
Despite the increasingly challenging sector outlook, we believe that BBC, by capitalising on the strength of its strategic partner, Lotte, is one of the few domestic confectionary manufacturers that are able to withstand the sector competition. Strong historical performance From 2005 to 2008, BBCs topline and bottomline enjoyed impressive compounded annual growth rates (CAGRs) of 23.8% and 19.2%, respectively. In 2008, the Groups net earnings dropped by 14.7% despite a revenue increase of 19.9%, mainly due to the impairment loss from its investment portfolio and its thinning gross margin from 26.1% in 2007 to 22.8% in 2008.

Figure 4: Historical revenue

600 500 400 300 15.0% 200 100 0 2005 2006 2007 2008 10.0% 5.0% 0.0%

Figure 5: Historical profit

35.0% 30.0% 25.0% 20.0%
15 10 5 0 2005 2006 2007 2008 30 25 20

Total revenues growth

Net Profit growth

60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0%

Source: Company data, Kim Eng

Source: Company data, Kim Eng

Nonetheless, we are optimistic about the Groups growth prospects going forward. We believe that the Group will be able to enjoy margin expansion supported by the improvement of its product mix. Besides that, BBCs ability to withstand intensified competition will be strengthened with assistance from Lotte. We estimate that the Groups revenue would register a commendable average growth rate of 13.1% in the 2009-2013 period. Our expected growth rate of 13.1% for BBC is relatively lower than the CAGR of 15.1% projected by BMI for the overall domestic confectionery market in the same corresponding period. Improving profit margin with support from Lotte We believe that the entry of Lotte as a strategic partner will help BBC to focus on improving its product mix going forward, which in turn will help to expand its profit margin. Furthermore, BBCs ability to produce Lottes trademark products and distribute them domestically and regionally, which enable it to bypass the challenging new product development phase, will eliminate considerable costs for the Group. We expect BBCs gross margin to increase from 22.8% in 2008 to 28.5% in 2009 and 29.3% in 2010. Nonetheless, we also expect its selling and administrative expenses to inch up for 2009 and 2010 due to potential higher staff costs and the inflation rate. Consequently, we expect BBCs confectionery business to register pre-tax earnings of VND 36.1bn, VND 57.4bn and VND 66.3bn for 2009, 2010 and 2011, respectively.

Bibica

4 December 2009

Financial activities The market meltdown last year resulted in BBCs provision of an impairment loss of VND 24.0bn on its equity investment. Nonetheless, this impairment loss was mitigated by its net interest income from bank deposits in the amount of VND 23.8bn. In view of BBCs large cash holdings amounting to VND 185.0bn as of 30 September 2009, coupled with the recovery of the equity market, we have inputted net financial incomes of VND 15.0bn for 2009, VND14.4bn for 2010 and VND 18.5bn for 2011 in our earnings model. In short, we estimate that BBCs overall pre tax earnings would be VND 53.1bn, VND 74.6bn and VND 87.8bn for 2009, 2010 and 2011, respectively. The breakdown of our estimated pre-tax earnings is illustrated below:

Figure 6: BBCs pre-tax profit breakdown

2008 Confectionery Financial activities Extraordinaries PBT EBITDA EPS
Source: Company data, Kim Eng

2009E 36.1 15.0 2.0 53.1 54.6 2,905

2010F 57.4 14.4 2.9 74.6 79.5 3,630

2011F 66.3 18.5 3.0 87.8 88.4 4,272

19.7 (1.0) 3.2 21.9 37.3 1,411

Investment Risk
We believe that investing in BBC is subject to the following risks: Potential rise of global raw material prices The need for BBC to source its main material inputs such as wheat flour, margarine and milk powder and sugar externally has exposed the Group to the volatility of global prices. Intensified competition Market competition is expected to intensify going forward with an increasing number of foreign players following Vietnams accession to WTO and the aggressive expansion of domestic players eager to capture market shares. Although BBC could be successful in building up brand names through launching new products and marketing campaigns with the support of Lotte, we believe that it would be challenging for BBC to substantially expand its market share going forward.

Figure 7: Confectionery market share in 2008

Kinh Do 30% Others 41%

Huu Nghi 9% Orion VN 7%

Hai Ha 6%

Bibica 7%

Source: Company data, EuroMonitor

Bibica

4 December 2009

Lack of product diversification Although BBC is in the process of restructuring it product portfolio, we observe that the Group still lacks some key segment products such as snacks and crackers. The respective market sizes for these products reached VND 656.0bn and VND 530bn, respectively, in 2008. Moreover, in the bun cake segment, BBCs has only one production line in Hanoi. This has effectively capped the Groups capacity to distribute its bun cake products beyond the northern region.

Valuation
We are initiating our coverage on BBC with a BUY recommendation and a target price of VND 39,900 per share, pegged at a forward P/E of 11.0x that is at a 30.0% discount to its regional peers. We believe that the discount is justifiable in view of its small market capital and limited regional exposure. Our target price offers a potential upside of 33.1% over BBCs current trading price of VND 30,000 per share.

Figure 8: Earnings forecast

2007 Revenue (VND bn) Change (%) Gross profit (VND bn) Gross margin (%) PBT (VND bn) Average Income tax rate (%) Net profit (VND bn) Net margin (%) EBITDA (VND bn) EPS (VND)
Source: Company data, Kim Eng

2008 544.4 19.9 123.9 22.8 21.9 4.9 20.9 3.8 37.3 1,411

2009E 600.0 10.2 171.0 28.5 53.1 15.6 44.8 7.5 54.6 2,905

2010F 681.5 13.6 199.9 29.3 74.6 25.0 56.0 8.2 79.5 3,630

2011F 775.5 13.8 228.6 29.5 87.8 25.0 65.9 8.5 88.4 4,272

454.0 33.0 118.3 26.1 33.3 26.7 24.4 5.4 33.2 2,279

Figure 9: Peers relative valuation

Country LOTTE CONFECTION ORION CORP KINHDO CORP NORTH KINHDO FOO WANT WANT CHINA GRUPO BIMBO-A Average BIBICA
Source: Bloomberg, Kim Eng

Market cap (m.usd)P/E08 1,543.0 1,476.6 230.6 33.9 9,254.4 8,491.8 3,505.1 25.8 9.9 n/a 9.7 9.4 36.5 19.3 17.0 21.3

P/E 09 14.9 26.4 8.6 6.3 31.8 17.8 17.6 10.3

P/E 10 13.3 22.3 13.2 7.2 24.2 15.1 15.9 8.3

P/B 1.0 3.4 1.8 2.4 10.6 2.8 3.7 0.9

P/S 1.4 2.7 2.9 0.9 5.6 1.0 2.4 0.8

ROA 7.7 -2.8 16.4 0.2 20.5 8.3 8.4 7.5

ROE 10.3 -6.4 22.1 0.4 32.4 13.9 12.1 8.9

EV/EBITDA 11.0 37.6 19.4 5.9 27.6 10.1 18.6 0.7

SK SK VN VN CH MX VN

Bibica

4 December 2009

Profit and loss

YE Dec (VND bn) Sales Cost of goods sold excl Dep. Depreciation Gross profit Operating expenses EBIT Net financial income (loss) Net income (loss) JV+Assoc. Net extraordinaries Pretax profit Income taxes Minority interests Net profit EBITDA EPS (VND) 24.4 33.2 2,279 20.9 37.3 1,411 44.8 54.6 2,905 56.0 79.5 3,630 65.9 88.4 4,272 0.6 33.3 -8.9 3.2 21.9 -1.1 2.0 53.1 -8.3 2.9 74.6 -18.7 3.0 87.8 -22.0 2007 454.0 -325.4 -10.2 118.3 -95.3 23.0 9.8 2008 544.4 -403.0 -17.6 123.9 -104.2 19.7 -1.0 2009F 600.0 -410.5 -18.5 171.0 -134.9 36.1 15.0 2010F 681.5 -459.6 -22.1 199.9 -142.5 57.4 14.4 2011F 775.5 -524.8 -22.1 228.6 -162.2 66.3 18.5

Cash flow
YE Dec (VND bn) Operating cash flow Net profit Depreciation & amortisation Change in working capital Others Investment cash flow Net capex Change in LT investment Change in other assets Cash flow after investments Financing cash flow Change in share capital Net change in debt Change in other LT liab. Div paid Net cash flow 2007 45.1 24.4 10.2 12.2 -1.8 -102.7 -95.0 -7.8 0.1 -57.6 79.4 17.8 49.7 28.8 -16.8 21.9 2008 -17.7 20.9 17.6 -56.0 -0.1 -203.4 -41.8 -161.7 0.1 -221.1 207.2 279.0 -31.5 -28.0 -12.3 -13.9 2009F 71.9 44.8 18.5 10.2 -1.6 -55.6 -66.7 13.6 -2.5 16.3 15.6 40.3 -0.1 -24.6 31.9 2010F 39.1 56.0 22.1 -38.9 -0.0 -21.7 -21.7 2011F 34.9 65.9 22.1 -53.1 -0.0 -30.7 -30.7

17.4 -7.8 -7.8

4.2 -7.8 -7.8 0.0 -3.6

9.6

Source: Company data, Kim Eng estimates

Source: Company data, Kim Eng estimates

Balance sheet
YE Dec (VND bn) Total assets Current assets Cash ST investment Inventories Trade receivable Others Other assets LT investments Net fixed assets Others Total liabilities Current liabilities Trade payable ST borrowings Others Long-term liabilities Long-term debts Others Shareholder's equity Paid-in capital Reserve Other provisions Minority interests Source: Company data, Kim Eng estimates 2007 379.2 179.1 44.4 14.1 86.9 26.8 7.0 200.1 38.5 149.4 12.2 172.2 141.0 74.0 55.9 11.1 31.2 0.8 30.4 207.0 177.9 27.4 1.6 2008 606.2 402.3 30.5 196.1 86.6 73.2 15.8 203.9 18.2 173.7 12.0 111.7 101.1 61.6 17.0 22.6 10.6 8.2 2.4 494.4 456.9 34.7 2.7 2009F 667.0 417.9 62.4 188.0 103.2 54.3 10.0 249.1 12.6 221.9 14.5 154.0 105.4 51.7 19.2 34.4 48.6 46.2 2.3 513.0 456.9 53.9 2.2 2010F 732.5 483.8 72.0 188.0 125.8 87.9 10.0 248.7 12.6 221.6 14.5 163.5 122.7 69.0 19.2 34.4 40.8 38.4 2.3 569.0 456.9 109.8 2.2 2011F 808.3 551.0 68.5 188.0 178.7 105.8 10.0 257.3 12.6 230.1 14.5 173.4 140.5 86.8 19.2 34.4 33.0 30.6 2.3 634.9 456.9 175.7 2.2

Key ratios
YE Dec Growth (% YoY) Sales EBIT EBITDA Net profit EPS Profitability (%) Gross margin EBIT margin EBITDA margin Net margin ROA ROE Stability Gross debt/equity (%) Net debt/equity (%) Int. coverage (X) Int. & ST debt coverage (X) Cash flow int. coverage (X) Cash flow int. & ST debt (X) Current ratio (X) Quick ratio (X) Assets turnover (X) Avg. inventories (days) Avg. trade recv. (days) Avg. trade payables (days) Net cash/(debt) (VND bn) Per share data (VND) EPS CFPS BVPS SPS EBITDA/share Cash Div 2007 33.0 20.9 8.8 27.4 -4.5 26.1 5.1 7.3 5.4 8.9 12.6 27.6 -0.9 7.0 0.7 13.7 1.3 1.3 0.6 1.5 81.9 22.3 63.4 1.8 2,279 4,208 19,068 42,335 3,097 2008 19.9 -14.1 12.3 -14.7 -38.1 22.8 3.6 6.9 3.8 5.7 6.0 5.1 -41.0 2.7 0.5 -2.5 -0.4 4.0 3.0 1.1 75.5 33.6 59.0 201.4 1,411 -1,201 31,884 36,853 2,525 1,000 2009F 10.2 82.8 46.3 114.8 105.8 28.5 6.0 9.1 7.5 7.5 8.9 12.8 -36.2 12.0 1.7 23.9 3.4 4.0 2.9 0.9 80.8 38.8 48.2 185.0 2,905 4,663 33,123 38,907 3,540 1,200 2010F 13.6 59.1 45.7 25.0 25.0 29.3 8.4 11.7 8.2 8.9 10.4 10.2 -35.7 8.7 2.2 5.9 1.5 3.9 2.9 1.0 86.8 38.1 45.8 202.4 3,630 2,537 36,754 44,197 5,156 2,000 2011F 13.8 15.5 11.2 17.7 17.7 29.5 8.6 11.4 8.5 9.3 11.0 7.9 -32.7 11.5 2.7 6.0 1.4 3.9 2.6 1.0 101.6 45.6 52.0 206.6 4,272 2,264 41,025 50,288 5,734 2,000

Source: Company data, Kim Eng estimates

ANALYSTS COVERAGE / RESEARCH OFFICES

SINGAPORE
Stephanie WONG Head of Research Regional Head of Institutional Research +65 6432 1451 swong@kimeng.com Strategy Small & Mid Caps Gregory YAP +65 6432 1450 gyap@kimeng.com Conglomerates Technology & Manufacturing Transport & Telcos Rohan SUPPIAH +65 6432 1455 rohan@kimeng.com Airlines Marine & Offshore Pauline LEE +65 6432 1453 paulinelee@kimeng.com Bank & Finance Consumer Retail Wilson LIEW +65 6432 1454 wilsonliew@kimeng.com Hotel & Resort Property & Construction Anni KUM +65 6432 1470 annikum@kimeng.com Industrials REITs James KOH +65 6432 1431 jameskoh@kimeng.com Infrastructure Resources David LOOMIS +65 6432 1417 dloomis@kimeng.com Special Situations

MALAYSIA
YEW Chee Yoon Head of Research +603 2141 1555 cheeyoon@kimengkl.com Strategy Banks Telcos Property Conglomerates & others LIEW Mee Kien +603 2141 1555 meekien@kimengkl.com Gaming Media Power Construction Research Team +603 2141 1555 Food & Beverage Manufacturing Plantations Tobacco Technology

PHILIPPINES
Ricardo PUIG Head of Research +63 2 849 8835 ricardo_puig@atr.com.ph Strategy Property Telcos Laura DY-LIACCO +63 2 849 8840 laura_dyliacco@atr.com.ph Utilities Conglomerates Robin SARMIENTO +63 2 849 8839 robin_sarmiento@atr.com.ph Banking Ports Mining Lovell SARREAL +63 2 849 8841 lovell_sarreal@atr.com.ph Consumer Cement Media

REGIONAL INDONESIA
Katarina SETIAWAN Head of Research +6221 2557 1125 ksetiawan@kimeng.co.id Consumer Infra Shipping Strategy Telcos Others Ricardo SILAEN +6221 2557 1126 rsilaen@kimeng.co.id Auto Energy Heavy Equipment Property Resources Rahmi Marina +6221 2557 1128 rmarina@kimeng.co.id Banking Adi N. WICAKSONO +6221 2557 1130 anwicaksono@kimeng.co.id Generalist Arwani PRANADJAYA +6221 2557 1129 apranadjaya@kimeng.co.id Technical analyst Luz LORENZO Economist +63 2 849 8836 luz_lorenzo@atr.com.ph Economics

TAIWAN
Gary Chia Head of Greater China Research +886 2 3518 7900 gary.chia@yuanta.com Boris Markovich COO, Greater China Research +852 3969 9518 boris.markovic@yuanta.com John Brebeck, CFA Head of Taiwan Strategy Head of Research, Taiwan +886 2 3518 7906 john.brebeck@yuanta.com George Chang, CFA Head of Upstream Tech +886 2 3518 7907 george.chang@yuanta.com Vincent Chen Head of Downstream Tech +886 2 3518 7903 vincent.chen@yuanta.com Dennis Chan NB Supply Chain +886 2 3518 7913 dennis.chan@yuanta.com Andrew C Chen IC Backend +886 2 3518 7940 andrew.chen@yuanta.com Ellen Chiu Taiwan Consumer +886 2 3518 7936 ellen.chiu@yuanta.com Danny Ho Taiwan Petrochemical +886 2 3518 7923 danny.ho@yuanta.com Min Li Alternative Energy +852 3969 9521 min.li@yuanta.com May Lin Taiwan Telecom +886 2 3518 7942 may.lin@yuanta.com Tess Wang Taiwan Financials +886 2 3518 7901 tess.wang@yuanta.com

HONG KONG / CHINA

Edward FUNG Head of Research +852 2268 0632 edwardfung@kimeng.com.hk Power Construction Ivan CHEUNG +852 2268 0634 ivancheung@kimeng.com.hk Property Ivan LI +852 2268 0641 ivanli@kimeng.com.hk Banking & Finance TAM Tsz Wang +852 2268 0636 tamtszwang@kimeng.com.hk Telcos Small Caps Emily LEE +852 2268 0631 emilylee@kimeng.com.hk Retail Jacqueline KO +852 2268 0633 jacquelineko@kimeng.com.hk Food & Beverage GUICE Fei Ling +852 2268 0635 feiling@kimeng.com.hk Ports & Shipping

VIETNAM
King Yoong CHEAH Head of Research +84 838 38 66 36 x 161 cheah.yoong@kimeng.com.vn Strategy Nguyen Thi Ngan Tuyen +84 838 38 66 36 x 163 tuyen.nguyen@kimeng.com.vn Pharmaceutical Confectionary and Beverage Oil and Gas Ngo Bich Van +84 838 38 66 36 x 164 van.ngo@kimeng.com.vn Bank Insurance Nguyen Quang Duy +84 838 38 66 36 x 162 duy.nguyenquang@kimeng.com.vn Shipping Seafood Rubber Trinh Thi Ngoc Diep +84 838 38 66 36 x 166 diep.trinh@kimeng.com.vn Property Construction

INDIA
Jigar SHAH Head of Research +91 22 6623 2601 jigar@kimeng.co.in Oil & Gas Transportation Anubhav GUPTA +91 22 6623 2605 agupta@kimeng.co.in Property Capital goods Urmil SHAH +91 22 6623 2606 urmil@kimeng.co.in Software Telecom R. SRINIVASAN +912266232625 rsrinivasan@kimeng.co.in Banking and Financial services Nikhil Agarwal +912266232611 nikhil@kimeng.co.in Cement Metals

THAILAND
Naphat CHANTARASEREKUL +662 658 6300 x 4770 naphat.c@kimeng.co.th Energy Piya ORANRIKSUPHAK +662 658 6300 x 4710 piya.o@kimeng.co.th Property Supattra KHONGRUNGPHAKORN +662 6586300 ext 4800 supattra.k@kimeng.co.th Media & Publishing Retail Information & Communication Technology Kanchan KHANIJOU + 662 658 6300 x 4750 kanchan@kimeng.co.th Banks Construction Materials

Recommendation definitions Our recommendation is based on the following expected price performance within 12 months: +15% and above: BUY -15% to +15%: HOLD -15% or worse: SELL

KELIVE Thailand (for retail clients)

George HUEBSCH Head of Research +662 658 6300 ext 1400 george.h@kimeng.co.th

Bibica

4 December 2009

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Additional information on mentioned securities is available on request. Jurisdiction Specific Additional Disclaimers: THIS RESEARCH REPORT IS STRICTLY CONFIDENTIAL TO THE RECIPIENT, MAY NOT BE DISTRIBUTED TO THE PRESS OR OTHER MEDIA, AND MAY NOT BE REPRODUCED IN ANY FORM AND MAY NOT BE TAKEN OR TRANSMITTED INTO THE REPUBLIC OF KOREA, OR PROVIDED OR TRANSMITTED TO ANY KOREAN PERSON. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF SECURITIES LAWS IN THE REPUBLIC OF KOREA. BY ACCEPTING THIS REPORT, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. THIS RESEARCH REPORT IS STRICTLY CONFIDENTIAL TO THE RECIPIENT, MAY NOT BE DISTRIBUTED TO THE PRESS OR OTHER MEDIA, AND MAY NOT BE REPRODUCED IN ANY FORM AND MAY NOT BE TAKEN OR TRANSMITTED INTO MALAYSIA OR PROVIDED OR TRANSMITTED TO ANY MALAYSIAN PERSON. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF SECURITIES LAWS IN MALAYSIA. BY ACCEPTING THIS REPORT, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. 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 Singapore. As of 4 December 2009, Kim Eng Research Pte. Ltd. and the covering analyst do not have any interest in BBC company. 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. 2009 Kim Eng Research Pte Ltd. All rights reserved. Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Kim Eng Research Pte. Ltd. Kim Eng Research Pte. Ltd. accepts no liability whatsoever for the actions of third parties in this respect.

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