Daily Market Commentary and Technical Stock Picks

Friday, 13 January, 2017
For Internal Circulation Only
TA RESEARCHS DAILY COMPILED REPORTS
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REIT
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c. Pantech Group Holdings Berhad: Better Earnings Going Forward
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Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change
without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from
the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD (14948-M)
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048
(A Participating Organisation of Bursa Malaysia Securities Berhad)
Kaladher Govindan Head of Research
Daily Note Daily Market Commentary
(A Participating Organisation of Bursa Malaysia Securities Bhd)
Friday, 13 January 2017 Menara TA One, 22 Jalan P Ramlee, 50250 Kuala Lumpur
Tel : 603 - 2072 1277. Fax : 603 - 2032 5048
TA Research
e-mail : taresearch@ta.com.my
KLSE Market Statistics (12.01.2017) Review & Outlook

Volume Value Value/ Blue chips ended higher Thursday led by strong gains on BAT (+RM1.92)
(mil) +/-chg (RMmn) +/-chg Volume Up Down and Petronas Gas (+24sen), but profit-taking forced the KLCI to settle off
Main Market 1,532.7 -336.9 2,010.6 146.1 1.31 404 218 best. The index added 2.55 points to close at 1,677.76, off an early low of
Warrants 218.6 61.9 34.6 8.9 0.16 74 50 1,673.44 and high of 1,682.74, as gainers led losers 539 to 298 on strong
turnover totaling 2.5bn shares worth RM2.19bn.
ACE Market 784.8 61.9 146.3 15.2 0.19 56 28
Bond 0.9 -6.2 0.1 -0.3 0.13 3 0 Profit-taking interest should increase ahead of the weekend, due to
ETF 0.0 0.02 0.0 0.02 1.16 2 2 disappointed investors given the absence of details from the US President-
Total 2,537.1 2,191.6 0.86 539 298 elect's news conference on policies affecting Asian markets. Stronger
Off Market 124.0 29.0 245.0 26.7 1.98 resistance levels for the index reside near 1,700 and the April 2016 high of
1,729. Key chart supports will be at the 200-day ma at 1,660, next at 1,643,
the 38.2%FR, followed by 1,640, the 30-day ma, with key retracement
support at 1,616, the 50%FR matching the recent correction low.
Major Indices
Index +/- chg % chg % YTD chg Any price weakness on Bumi Armada shares should attract buyers looking
Malaysia for recovery upside towards the 200-day ma (70sen), with a convincing
breakout to target the 38.2%FR (74sen) and 50%FR (81sen) ahead.
FBMKLCI 1,677.76 2.55 0.15 -0.87 Immediate support is from the 30-day ma (60sen). Likewise, dips on
FBMEMAS 11,751.47 32.35 0.28 -0.36 SapuraKencana should encourage bargain hunting ahead of recovery
FBMSCAP 15,343.28 86.61 0.57 -3.77 towards the 61.8%FR (RM1.89), with stronger resistance from the
Jan Futures 1,677.00 -4.00 -0.24 -0.68 50%FR (RM2.08). Key chart supports are at the 76.4%FR (RM1.66) and
Other Markets 200-day ma (RM1.58).
DOW JONES 19,891.00 -63.28 -0.32 14.15 News Bites
NASDAQ (US) 5,547.49 -16.16 -0.29 10.79
The Ministry of Finance has ruled out the possibility of a budget
FTSE (UK) 7,292.37 1.88 0.03 16.82 recalibration despite the weaker ringgit/US dollar environment.
NIKKEI (JAPAN) 19,134.70 -229.97 -1.19 0.53 Malayan Banking Bhd is planning to dispose its entire 68.55% stake in
KOSPI (KOREA) 2,087.14 11.97 0.58 6.42 WOM Finance to PT Reliance Capital Management for an indicative
HANG SENG (HK) 22,829.02 -106.33 -0.46 4.17 price of IDR673.77bn (approximately RM229.08mn) cash
FSSTI (S'PORE) 2,993.00 -7.94 -0.26 3.83 consideration.
Perisai Petroleum Teknologi Bhd and its wholly-owned subsidiary
SET (BANGKOK) 1,568.84 -4.09 -0.26 21.80 Perisai Capital (L) Inc have been granted a restraining order against
JCI (JAKARTA) 5,292.75 -8.49 -0.16 15.23 all proceedings and actions brought against the two companies as
SHANGHAI 3,119.29 -17.46 -0.56 -11.86 part of its regularisation plan.
SHENZHEN 1,951.31 -17.12 -0.87 -15.49 Atlan Holdings Bhd's subsidiary Duty Free International Ltd has
AUSTRALIA 5,766.85 -4.63 -0.08 8.89 announced a bonus warrants issue of up to 477.74mn warrants on
the basis of two warrants for every five existing shares.
Thriven Global Bhd has teamed up with the Perak State Secretary Inc
Top 10 KLCI Movers Based on to build affordable houses on 11 pieces of freehold land measuring
Off Market Mkt Cap. 43.297 acres in Behrang Ulu, Perak.
Prestariang Bhd has signed a Memorandum of Understanding with
(mn) (RM) CounterMkt Cap. Chg Vol. Alibaba's subsidiary Alibaba Cloud and technology firm Conversant
REACH 45.3 @ 0.65 (RMmn) (RM) (mn) Solutons Pte Ltd to jointly build an integrated education platform
CONNECT-PA 25.0 @ 0.06 MAYBANK 84,705 0.01 11.99 known as EduCloud.
SKPRES 10.0 @ 1.32 AMBANK 57,600 0.05 10.90 Ho Hup Construction Company Bhd, via its unincorporated joint
GAMUDA 8.0 @ 4.94 KLCCSS 43,100 0.04 23.15 venture DSE-HH JV, has been awarded a 36-month contract worth
OCR-PA 7.9 @ 0.08 HAPSENG 41,355 0.24 2.42 RM221.4mn for rehabilitation works along Sungai Besut, Terengganu.
SIME 33,389 0.01 1.66 EKA Noodles Bhd's wholly-owned subsidiaries Kilang Bihun Bersatu
LAYHONG-WA 7.6 @ 5.00
GENM 31,167 0.07 5.24 Sdn Bhd and EKA Foodstuff Sdn Bhd will shut down their
SUNCON 4.7 @ 1.69 manufacturing plants, cease operations and dispose assets to settle
BIMB 3.5 @ 4.20 MISC 27,499 0.04 0.51 the company's liabilities.
KLCC 2.3 @ 7.81 PETGAS 25,772 0.08 1.35 Sarawak Cable Bhd has decided to pull the plug on its proposed private
MAYBANK 2.0 @ 8.31 DIGI 23,644 0.02 0.27 placement of up to 10% of its issued and paid-up share capital to raise
NWP 1.6 @ 0.24 IOICORP 19,850 0.02 2.49 about RM53.9mn due to market conditions and its share price.
DNEX-WD 1.0 @ 0.06 Berjaya Food Bhd has appointed Sydney Lawrence Quays as its
BAUTO 1.0 @ 2.04 executive director while Datuk Zurainah Binti Musa has resigned from
her position as non-independent, non-executive director of the
LFECORP 1.0 @ 0.36 company.
Yen Global Bhd, in which Green Packet Bhd has bought a 22% stake
last year, proposed to change its name to G3 Global Bhd.
Important Dates The US initial jobless claims increased 10,000 to a seasonally adjusted
VIZIONE - 2:1 Rights Issue - RI of up to 731.6m shares together
247,000, lower than expected 255,000, in the week ended January 7.
with up to 365.8m free detachable warrants.
2 rights shares for every 1 existing share held, at an issue price of Exchange Rate Commodities Futures
RM0.10 per rights share, together with 1 warrant for every 2 rights USD/MYR 4.4520 -0.0213 Palm Oil (RM/mt) 3,076.00 -9.00
shares subscribed. Application Closed: 12/01/2017. USD/JPY 114.20 -2.1400 Crude Oil ($/Barrel) 53.03 0.66
LISTING ON: 26/01/2017. EUR/USD 1.064 0.0116 Gold ($/tr.oz.) 1,195.10 3.60
DISCLAIMER
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to change without
notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising from the use
of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
for TA SECURITIES HOLDINGS BERHAD
Kaladher Govindan, Head of Research
TA Securities A Member of the TA Group
Friday, January 13, 2017
FBMKLCI: 1,677.76
Daily Brief
Market View, News In Brief: Corporate, Economy, and Share Buybacks
THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY*

TA Research Team Coverage Tel: +603-2072 1277 taresearch@ta.com.my www.taonline.com.my
Market View Profit-Taking from Disappointed Investors Likely
Blue chips ended higher Thursday led by strong gains on BAT (+RM1.92) and Petronas Gas
(+24sen), but profit-taking forced the KLCI to settle off best. The index added 2.55 points to
close at 1,677.76, off an early low of 1,673.44 and high of 1,682.74, as gainers led losers 539
to 298 on strong turnover totaling 2.5bn shares worth RM2.19bn.
Stronger Resistance Near 1,700, Support at 1,660

Profit-taking interest should increase ahead of the weekend, due to disappointed investors
given the absence of details from the US President-elects news conference on policies
affecting Asian markets. Stronger resistance levels for the index reside near 1,700 and the
April 2016 high of 1,729. Key chart supports will be at the 200-day ma at 1,660, next at
1,643, the 38.2%FR, followed by 1,640, the 30-day ma, with key retracement support at
1,616, the 50%FR matching the recent correction low.
Buy on Weakness Bumi Armada & SapuraKencana

Any price weakness on Bumi Armada shares should attract buyers looking for recovery
upside towards the 200-day ma (70sen), with a convincing breakout to target the 38.2%FR
(74sen) and 50%FR (81sen) ahead. Immediate support is from the 30-day ma (60sen).
Likewise, dips on SapuraKencana should encourage bargain hunting ahead of recovery
towards the 61.8%FR (RM1.89), with stronger resistance from the 50%FR (RM2.08). Key
chart supports are at the 76.4%FR (RM1.66) and 200-day ma (RM1.58).
Asian Markets Retreat on Disappointment Over Trump Speech

Asian market fell on Thursday, after Donald Trumps first press conference since his election
victory gave scant detail on policy. Trumps first press conference since July left investors
with little detail on the timing and scope of planned policies from infrastructure spending to
trade pacts. Since his victory, the dollar and global equities have rallied, while bonds sold off
amid expectations growth will get a kick higher from his administrations actions. Japan's
Nikkei share average dropped to a near two-week low, as the yen strengthened against the
dollar to 114.62 compared to levels as high as 116 in yesterday's session. The
pharmaceutical sector was heavily battered, falling 2.4 percent and was the worst performer
on the board. The Nikkei fell 1.2 percent to 19,134.70, the lowest closing level since Dec. 30.
Australia's ASX 200 also slipped 0.08 percent or 4.58 points to close at 5,766.9, down from
earlier gains of 0.51 percent. Over on the mainland, China's main indices slid for the third
session as investors remained cautious ahead of the Lunar New Year holidays and as small-
cap companies settled at a fresh 10-month low. The blue-chip CSI300 index fell 0.5 percent
to 3,317.62 points, while the Shanghai Composite Index lost 0.6 percent to 3,119.29 points.
Financial Sector Drag Wall Street Lower Ahead of Earnings

The three major U.S. stock indexes closed lower on Thursday on speculation post-election
market moves went too far, with investors awaiting corporate earnings and fresh economic
data for clues on the economys strength. A day after Donald Trumps press
conference provided few specifics on the timing and scope of planned policies from
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A Member of the TA Group 13-Jan-17
infrastructure spending to trade pacts, investors began turning attention to corporate
earnings and a report on holiday-season retail sales. Financials leading the decline a day
ahead of the first major earnings reports in that sector. Major U.S. banks including J.P.
Morgan, Bank of America and Wells Fargo are slated to report earnings on late Friday. In
economic news, weekly jobless claims rose less than expected, while U.S. import prices rose
in last month, boosted by higher oil prices.
The Dow Jones Industrial Average fell 63.28 points, or 0.32 percent, to close at 19,891, the
S&P 500 dropped 4.88 points, or 0.21 percent, to 2,270.44 and the Nasdaq Composite dipped
16.16 points, or 0.29 percent, to 5,547.49.
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News In Brief
Corporate
Malayan Banking Bhd (Maybank) is planning to dispose its entire 68.55% stake in WOM
Finance to PT Reliance Capital Management for an indicative price of IDR673.77bn
(approximately RM229.08mn) cash consideration. The proposed disposal is undertaken as
part of Maybank Indonesias strategic initiative to maximise its capital use and streamline
its customer segmentation which will optimise its resources in the most efficient manner.
(Bursa Malaysia)
Perisai Petroleum Teknologi Bhd and its wholly-owned subsidiary Perisai Capital (L) Inc
have been granted a restraining order against all proceedings and actions brought against
the two companies as part of its regularisation plan. It said the High Court of Malaya
(Commercial Division) at Kuala Lumpur had granted orders pursuant to Sections 176(1)
and 176(10) of the Companies Act 1965. (Bursa Malaysia)
Atlan Holdings Bhd's subsidiary Duty Free International Ltd has announced a bonus
warrants issue of up to 477.74mn warrants on the basis of two warrants for every five
existing shares. Each bonus warrant will entitle the warrant holder to subscribe for one
new share in the company at an exercise price of SGD0.43(RM1.35) each, which is at a
premium of 7.5% to the last transacted price of SGD0.40. (Bursa Malaysia)
Thriven Global Bhd has teamed up with the Perak State Secretary Inc (SSI) to build
affordable houses on 11 pieces of freehold land measuring 43.297 acres in Behrang Ulu,
Muallim, Perak. Thriven has entered into a joint venture agreement with SSI for the
proposed development. New Catalysts Resources (M) Sdn Bhd owns the remaining 15%
shares of Thriven NCR. Under the JV agreement, SSI is entitled to RM6.49mn plus 25% of
pre-tax profit for the proposed project, while Thriven NCR will be entitled to the remaining
75%. (Bursa Malaysia)
Prestariang Bhd has signed a Memorandum of Understanding with Alibabas subsidiary

Alibaba Cloud and technology firm Conversant Solutons Pte Ltd to jointly build an
integrated education platform known as EduCloud. EduCloud will be a single platform to
deliver all activities linked to education and related services. These cloud-based services
will include campus management, teaching and learning, entertainment, digital payment,
many other services and online applications. (Bursa Malaysia)
Ho Hup Construction Company Bhd, via its unincorporated joint venture (JV) DSE-HH JV,
has been awarded a 36-month contract worth RM221.4mn for rehabilitation works along
Sungai Besut, Terengganu. Ho Hup said it owns an 80.7% stake in DSE-HH JV while the
remainder is held by DSE Construction Sdn Bhd. DSE-HH JV will construct a breakwater,
revetment, silt curtain, beach nourishment; install settlement plates and all associated
works in relation to the rehabilitation works along Sungai Besut.
EKA Noodles Bhds wholly-owned subsidiaries Kilang Bihun Bersatu Sdn Bhd (KBBSB)
and EKA Foodstuff Sdn Bhd, will shut down their manufacturing plants and cease
operations from Jan 18. The proposed cessation will also involve the disposal of KBBSBs
assets, from which the proceeds from the exercise will be used to settle the companys
liabilities. (Bursa Malaysia)
Sarawak Cable Bhd has decided to pull the plug on its proposed private placement of up to
10% of its issued and paid-up share capital to raise about RM53.9mn due to market
conditions and its share price. (Bursa Malaysia)
Berjaya Food Bhd (BFB) has appointed Sydney Lawrence Quays as its executive director
while Datuk Zurainah Binti Musa has resigned from her position as non-independent, non-
executive director of the company. Quays is currently also a director of Berjaya Food
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Trading Sdn Bhd, a wholly-owned subsidiary of BFB, and is responsible for the growth of
BFood Trading, which operates the fast-moving consumer goods business. (Bursa Malaysia)
China-based Maxwell International Holdings Bhd, a Practice Note 17 company, has

appointed two executive directors You Xiliang and Yung Chi Man, effective today. You, 54,
founded and chairs PRC Fortune Group Ltd, a commodity trading company that owns and
operates a chromium mine in Philippines. Yung, 42, has about 20 years of experience in
trading, mining and corporate finance, and used to be a general manager in a Hong Kong-
listed gold mining company in China. (Bursa Malaysia)
Yen Global Bhd, in which Green Packet Bhd has bought a 22% stake last year, proposed to
change its name to G3 Global Bhd. The name G3 Global Bhd has been approved and
reserved by the Companies Commission of Malaysia for the company. (Bursa Malaysia)
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News In Brief
Economy
Asia MoF Rules Out any Possibility of Budget Recalibration
The Ministry of Finance (MoF) has ruled out the possibility of a budget recalibration despite
the weaker ringgit/US dollar environment. Second Finance Minister Datuk Johari Abdul
Ghani said there was no need for a budget recalibration as the Malaysian economy would
adjust accordingly to overcome adversities, including the weak ringgit. Johari said one of
the factors that contributed to the weakening ringgit was the anticipation of US President-
elect Donald Trump implementing an inward driven economic policy which would lead to
interest rate hike in the world's largest economy. Johari also dismissed any speculation of
the government reintroducing capital control as it was not in sync with the country's open
economic policy. "We are not going to do any pegging and we will not control our capital
flows. (The Star Online)
Japan November Current Account Surplus Y1.415 Trillion

Japan posted a current account surplus of 1.415 trillion yen in November, climbing 28.0%
on year. The headline figure was shy of expectations for a surplus of 1.460 trillion yen and
down from 1.719 trillion yen in October. The trade balance showed surplus of 313.4 billion
yen - exceeding forecasts for 254.4 billion yen and down from 587.6 billion yen in the
previous month. Exports were down 0.8% on year to 5.890 trillion yen after slipping 9.4%
to 5.747 trillion yen a month earlier. Imports tumbled 10.7% to 5.577 trillion yen after
skidding 15.9% to 5.160 trillion yen in October. The capital account showed a deficit of 8.8
billion yen following the 79.8 billion yen shortfall in the previous month. The financial
account saw a surplus of 1.096 trillion yen, up from 744.6 billion yen a month earlier. The
adjusted current account surplus was 1.799 trillion yen, shy of forecasts for 1.870 trillion
yen and down from 1.928 trillion yen in October. Also, the Bank of Japan said that overall
bank lending in Japan was up 2.6% on year in December, coming in at 509.555 trillion yen.
That beat forecasts for an increase of 2.5% and was up from 2.4% in November. Excluding
trusts, bank lending was also up 2.6% to 443.274 trillion yen. That also exceeded
expectations for 2.5% and was up from 2.4% in the previous month. Lending from trusts
gained an annual 2.3% to 66.280 trillion yen, while lending from foreign banks spiked
19.8% to 2.227 trillion yen. For the third quarter of 2016, overall lending and lending
minus trusts both were up 2.5%.
Separately, measure of peoples' assessment of the Japanese economy held steady at the end
of the year. The current index of Economy Watchers' survey came in at 51.4 in December,
the same reading as in the previous month. In October, the score was 48.4. Any reading
above 50 indicates optimism and a reading below 50 suggests pessimism. At the same time,
the outlook index dropped to 50.9 in December from 51.3 in November. (RTT News)
U.S. U.S. Jobless Claims Rise Modestly to Start Year

The number of Americans who applied for first-time unemployment benefits rose last week
from near a four-decade low, but the figure remains at a level indicating steady job creation.
Initial jobless claims, a measure of how many workers were laid off, increased 10,000 to a
seasonally adjusted 247,000 in the week ended Jan. 7, the Labor Department said Thursday.
Economists surveyed by The Wall Street Journal expected 255,000 initial claims. Claims for
the prior week were revised up by 2,000 to 237,000. That was still the second-lowest
reading since 1973. Swings in claims data around holidays aren't unusual. During those
periods, jobless claims figures can be difficult to seasonally adjust due to calendar
variations. Unadjusted data shows that claims typically peak during the first few weeks of
the year. The four-week moving average of adjusted claims, which evens out weekly
volatility in the data, fell by 1,750 to 256,500 last week. Labor Department economists
reported no special factors that may have distorted the latest weeks data. More broadly,
initial jobless claims fell fairly steadily since reaching a peak in 2009, during the final
months of the recession, until last year, when they plateaued near the lowest levels since
the 1970s. Claims have held below the 300,000 mark for 97 straight weeks, the longest
streak since 1970. A low level of layoffs typically coincides with hiring. (The Wall Street
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Journal)
U.S. Import Prices Rebound Less Than Expected in December

While fuel prices showed a substantial rebound, the Labor Department released a report
showing that U.S. import prices rose by less than expected in the month of December. The
Labor Department said import prices climbed by 0.4% in December after edging down by a
revised 0.2% in November. Economists had expected import prices to increase by 0.7%
compared to the 0.3% drop originally reported for the previous month. The report also said
export prices rose by 0.3% in December after slipping by 0.1% in November. Export prices
had been expected to inch up by 0.2%. (RTT News)
U.S. Budget Deficit Widening Again Amid Talk of Possible Tax Cuts
The federal budget deficit is widening again after years of post-recession shrinkage, with its
trajectory in the coming years uncertain as President-elect Donald Trump and
congressional Republicans look to cut taxes and boost U.S. economic growth. The U.S. ended
the 2016 calendar year with a $580 billion deficit, according to Treasury Department data
released Thursday, representing roughly 3.1% of U.S. gross domestic product. That was up
from a deficit of around 2.6% of GDP at the end of the 2015 calendar year, and it ended a
six-year streak of annual declines. The nonpartisan Congressional Budget Office last year
predicted rising budget deficits over the next decade as outlays grow faster than tax
receipts and other revenue. The CBO foresees the deficit climbing from 3.1% of GDP in the
current fiscal year, which began October 1, to 4.6% of GDP by the 2026 fiscal year. But that
projection assumes no major changes to current law and continued modest economic
growth. The coming Trump administration has signalled that overhauling the tax code will
be a priority along with boosting infrastructure investment, though it remains to be seen
how that could affect economic growth, government revenues and the budget deficit. (The
Wall Street Journal)
Eurozone ECB Stimulus Extension Followed Disagreement on Best Path for QE

European Central Bank policy makers appear to have had a vibrant debate on how to set
the path of stimulus last month, an account of their meeting shows. While the Governing
Council largely shared the view that the scenario of a gradual uptrend in inflation still
relied, to a considerable degree, on accommodative monetary-policy support, the 25-
member body couldnt reach unanimity on how to maintain that support. Executive Board
member Peter Praet, the chief economist, presented two options of extending bond-buying
after March for 6 months at 80 billion euros ($85 billion) a month, or for 9 months at 60
billion euros. A few members voiced an initial preference for the first option presented by
Mr. Praet, whereby purchases would be continued at a monthly pace of 80 billion euros for
an intended horizon of 6 months, while expressing readiness to join a consensus forming
the second option, according to the account. A few members could not support either of
the two options. The Governing Council eventually chose on Dec. 8 to approve the second
option, with ECB President Mario Draghi saying at a press conference that there was a need
to keep stimulus in an uncertain regional and global environment. The euro area faces a run
of national elections that could see populists gaining more traction, just as the U.K.
negotiates its exit from the European Union and Donald Trump starts his U.S. presidency.
(Bloomberg)
Eurozone Economy Registering Surprisingly Strong Growth Spurt

Industries across the Eurozone cranked up output in November and Germany ended the
year with its strongest growth in five years, pointing to an economic spurt that may be
arriving earlier than some ECB policymakers expect. Eurozone industrial output in the 19-
country currency bloc surged 1.5% on the month and 3.2% year-on-year as firms stepped
up production before Christmas. Both figures were far better than expected. That gelled
with a surprisingly large increase in Italian industrial production and similarly robust
numbers earlier this month from France. The German statistics office, meanwhile,
estimated growth in the Eurozone largest economy was around 0.5% for the fourth quarter
and expanded by 1.9% in 2016, the strongest rate in five years. Economists said these
figures added to the evidence that euro zone gross domestic product will have picked up in
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the last quarter of last year. The numbers are also relatively unexpected. Indeed,
investment bank Citi ranked the Eurozone at the top of its Economic Surprise Index at year-
end, higher even than the rating for Britain's unforeseen post-Brexit performance.
Eurozone GDP grew a modest 0.3% in second and third quarter of last year, after a 0.5%
rise in the first quarter. THE figures add to a jump in the bloc's economic sentiment which
in December reached its strongest level since March 2011. (Reuters)
German GDP Grows at Fastest Rate in Five Years

Germanys economy grew strongly in 2016, propelled by a buoyant labour market and a
pickup in government spending, likely making it one of the fastest-growing of the Group of
Seven industrialized nations. Germanys gross domestic product expanded by 1.9% in 2016
from 2015 in inflation-adjusted terms, the Destatis statistics body said Thursday. This is the
highest rate since 2011, beating the governments own prediction of 1.8% growth. There
was a pickup in economic activity toward year-end. A statistician with Destatis said that
gross domestic product probably expanded by around 0.5% in the fourth quarter from the
third quarter. An official forecast is due Feb. 14. The restraint seen in the third quarter has
been overcome, the economics ministry said in its monthly report, pointing to solid
industrial production and an improving global environment. However, an uneasy mix of
rising inflation and zero interest rates has started to unsettle voters, as it may erode
households savings and wage gains. It has also prompted German politiciansincluding
within Ms. Merkels ranksto call for an end of the European Central Banks ultra-lose
monetary policy. With inflation picking up markedly, there is really no argument left that
speaks in favour of a zero interest-rate policy, Carsten Linnemann, a lawmaker with the
Christian Democrats, said.
Inflation in Europes largest economy has risen to its highest level in almost 3 years,
largely as a result of higher oil prices. The Bundesbank forecast in December that inflation,
measured according to European Union harmonized standards, would rise to about 1.4% in
2017 from 0.3% in 2016. That is a concern for Germanys households, who are sitting on
around 2 trillion euros ($2.1 trillion) of deposits. The populist Alternative for Germany
party is trying to cash in on the mood swing, as it seeks to win its first seats in the national
parliament. Government spending rose 4.2% in 2016 from 2015, according to Destatis.
Household consumption increased 2.0%, while construction investment rose 3.1%. A 2.5%
rise in exports, meanwhile, was outstripped by a 3.4% increase in imports. Investment in
plant and machinery was lacklustre, up 1.7% from the 2015. Economists warned that rising
inflation, if left unchecked, would soon start eroding households incomes and savings, as
the European Central Bank isn't expected to raise interest rates in the near-term. The ECB
sets rates across the Eurozone, of which Germany is a member. The government must
urgently address the problems caused by low rates to woo back voters from the AfD party,
said the Christian Democrats Mr. Linnemann. (The Wall Street Journal)
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Share Buy-Back: 12 Jan 2017

Total Treasury
Company Bought Back Price (RM) Hi/Lo (RM)
Shares
BJFOOD 94,200 1.58/1.54 1.58/1.54 5,228,700
GLOMAC 30,000 0.70 0.70/0.695 4,745,900
GRANFLO 53,000 0.20/0.195 0.20/0.19 5,951,800
LIONIND 20,000 0.45 0.46/0.445 35,336,400
PARKSON 135,000 0.685/0.665 0.685/0.66 26,486,880
SALCON 100,000 0.60/0.595 0.60/0.585 35,110,000
SIGN 40,000 0.82/0.815 0.825/0.810 6,530,200
UNIMECH 10,500 1.12/1.10 1.12/1.11 5,316,610
Source: Bursa Malaysia
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions
are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no
liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in
the securities and/or companies mentioned herein.
Page 8 of 8
SNAPSHOT OF STOCKS UNDER COVERAGE
Company Share Price Target Price EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg
BETA
(RM) (RM) FY17 FY18 FY17 FY18 FY17 FY18 High Price % Chg Low Price % Chg YTD
12-Jan-17
AUTOMOBILE
BAUTO 2.05 2.18 0.98 13.2 17.1 15.5 12.0 6.5 8.3 2.44 -16.0 1.79 14.6 -3.8
MBMR 2.10 2.20 0.69 24.5 25.3 8.6 8.3 2.9 2.9 2.70 -22.2 1.94 8.2 -1.9
UMW 4.62 4.05 1.11 12.4 18.9 37.2 24.5 1.7 2.6 7.45 -38.0 4.43 4.3 1.1
BANKS & FINANCIAL SERVICES

AFG 3.74 3.70 1.20 35.8 37.7 10.4 9.9 4.0 4.0 4.37 -14.4 3.07 21.8 0.5
AFFIN 2.45 2.60 0.87 24.7 26.1 9.9 9.4 3.3 3.3 2.54 -3.5 2.08 17.8 2.5
AMBANK 4.49 4.50 1.22 46.4 50.6 9.7 8.9 3.6 4.0 4.76 -5.7 3.90 15.1 4.2
CIMB 4.86 5.60 1.18 50.0 52.3 9.7 9.3 4.3 4.5 5.10 -4.7 3.89 25.1 7.8
HLBANK 13.40 13.00 0.69 101.3 109.8 13.2 12.2 3.1 3.1 13.80 -2.9 12.70 5.5 -0.7
MAYBANK 8.31 8.00 0.95 72.8 82.3 11.4 10.1 5.4 5.8 9.20 -9.7 7.50 10.8 1.3
PBBANK 20.06 20.30 0.83 134.2 142.0 14.9 14.1 2.8 2.8 20.14 -0.4 17.76 13.0 1.7
RHBBANK 4.95 5.00 1.16 52.6 56.4 9.4 8.8 2.4 2.4 5.18 -4.4 3.85 28.4 5.1
BURSA 8.90 9.30 0.67 41.7 46.0 21.4 19.4 3.9 3.9 9.43 -5.6 8.06 10.4 0.6
CONSTRUCTION
BPURI 0.43 0.44 0.86 6.2 5.6 6.9 7.7 0.0 4.7 0.51 -15.7 0.36 19.4 -1.1
GADANG 1.04 1.37 0.67 12.9 13.6 8.1 7.6 2.7 2.7 1.35 -23.1 0.75 39.0 -1.0
GAMUDA 4.94 5.62 1.00 33.0 36.7 15.0 13.4 2.4 2.4 5.00 -1.2 4.35 13.6 3.3
IJM 3.38 3.23 1.04 16.9 20.7 20.0 16.3 2.8 2.8 3.61 -6.3 3.07 10.1 5.6
SENDAI 0.62 0.60 1.07 9.9 9.3 6.2 6.6 1.6 1.6 0.77 -20.1 0.41 51.9 7.0
SUNCON 1.69 1.85 na 12.3 12.4 13.7 13.6 3.3 3.3 1.74 -2.9 1.32 28.0 -0.6
WCT 1.88 1.54 0.95 13.1 12.4 14.4 15.1 1.6 1.6 1.98 -5.1 1.41 33.3 8.7
LITRAK 5.80 5.58 0.16 47.7 48.1 12.2 12.1 4.3 4.3 6.06 -4.3 4.90 18.4 -1.4
Building Materials
WTHORSE 2.01 2.07 0.53 20.7 21.3 9.7 9.4 5.0 5.0 2.40 -16.3 1.93 4.1 0.0
CONSUMER
Brewery
CARLSBG 14.14 15.52 0.59 76.9 83.6 18.4 16.9 5.4 5.9 15.20 -7.0 11.46 23.4 1.6
HEIM 16.40 19.73 0.56 90.1 95.0 18.2 17.3 4.9 5.2 18.74 -12.5 12.63 29.8 0.1
Retail
AEON 2.53 2.23 0.53 6.5 7.5 38.9 33.5 0.8 0.9 3.00 -15.7 2.47 2.4 -1.6
AMWAY 7.50 8.00 0.40 35.3 38.3 21.3 19.6 3.7 4.0 9.70 -22.7 7.40 1.4 1.1
F&N 23.32 21.71 0.37 98.5 115.9 23.7 20.1 2.5 3.0 27.00 -13.6 18.10 28.8 -0.7
NESTLE 75.82 88.16 0.40 343.1 358.4 22.1 21.2 4.1 4.3 81.80 -7.3 72.80 4.1 -3.0
PADINI 2.50 4.00 0.53 23.5 26.5 10.6 9.4 6.0 7.2 3.08 -18.8 1.81 38.2 -2.0
POHUAT 1.86 2.08 0.66 22.9 22.9 8.1 8.1 4.3 4.3 1.99 -6.5 1.41 31.9 7.5
QL 4.39 4.71 0.55 19.0 21.1 23.1 20.8 1.2 1.3 4.65 -5.6 4.17 5.3 0.7
SIGN 0.82 1.26 0.59 12.2 13.6 6.7 6.0 6.1 6.1 1.07 -23.2 0.72 13.8 3.1
Tobacco
BAT 48.50 56.00 0.97 278.0 288.8 17.4 16.8 5.6 5.8 58.40 -17.0 40.70 19.2 8.7
GAMING
Casino
GENTING 8.37 9.25 1.36 44.1 50.8 19.0 16.5 0.6 0.7 9.90 -15.5 7.02 19.2 4.6
GENM 4.82 5.66 1.18 26.9 29.2 17.9 16.5 1.7 1.9 4.97 -3.0 4.05 19.0 5.2
NFO
BJTOTO 2.95 4.01 0.75 24.6 24.8 12.0 11.9 6.4 7.3 3.47 -15.0 2.86 3.1 -0.3
LUSTER 0.07 0.10 0.98 0.2 0.3 35.5 23.2 0.0 0.0 0.09 -17.6 0.05 40.0 40.0
HEALTHCARE
Hospitals
IHH 6.35 6.50 0.87 14.4 18.3 44.0 34.7 0.6 0.7 6.79 -6.5 6.15 3.3 0.0
KPJ 4.15 4.70 0.55 14.3 17.3 29.0 24.1 1.4 1.7 4.39 -5.5 4.06 2.2 -0.7
Rubber Gloves
HARTA 4.76 3.95 0.55 16.5 20.9 28.8 22.8 1.6 2.0 6.10 -22.0 3.81 24.9 -1.4
KOSSAN 6.64 7.15 0.15 39.0 49.3 17.0 13.5 2.9 3.7 9.09 -27.0 5.90 12.5 0.8
SUPERMX 2.16 2.15 0.57 17.5 21.8 12.3 9.9 2.4 3.0 3.54 -39.0 2.01 7.5 2.4
TOPGLOV 5.27 7.40 -0.17 24.6 29.1 21.4 18.1 2.4 2.8 7.03 -25.0 4.20 25.5 -1.5
KAREX 2.43 2.85 0.42 7.3 11.7 33.3 20.7 0.8 1.2 3.11 -21.9 2.13 14.1 3.0
INDUSTRIAL
SCIENTX 6.75 8.50 0.49 67.9 78.0 9.9 8.7 3.0 3.4 7.08 -4.7 5.08 32.9 0.7
SKPRES 1.35 1.75 0.68 9.4 14.5 14.4 9.3 3.3 5.1 1.44 -6.3 1.12 20.5 4.7
MEDIA
ASTRO 2.69 3.30 1.08 12.7 14.7 21.1 18.3 4.6 4.8 3.02 -10.9 2.41 11.6 3.5
MEDIA PRIMA 1.05 1.00 0.64 9.1 10.3 11.5 10.2 6.9 7.8 1.54 -31.8 1.01 4.0 -8.7
STAR 2.28 1.95 0.53 15.1 16.0 15.1 14.3 7.9 7.9 2.70 -15.6 2.20 3.6 1.8
OIL & GAS

EATECH 0.71 0.44 na 11.2 13.4 6.4 5.3 4.7 5.7 1.25 -43.2 0.45 59.6 14.5
MHB 1.02 1.03 1.72 2.0 3.8 51.0 26.7 0.0 0.0 1.34 -23.9 0.84 21.4 11.5
MISC 7.48 7.68 0.90 58.3 67.7 12.8 11.1 4.0 4.0 9.16 -18.3 6.88 8.7 1.8
PANTECH 0.47 0.52 1.15 3.7 4.3 12.5 10.8 3.2 3.7 0.52 -10.5 0.44 6.9 4.5
PCHEM 7.20 7.75 1.24 34.5 39.1 20.9 18.4 2.6 3.1 7.52 -4.3 5.95 21.0 3.2
SKPETRO 1.92 1.71 2.41 4.9 4.3 39.3 44.2 0.0 0.0 2.18 -22.0 1.29 31.8 4.9
UMWOG 0.92 0.55 1.96 -14.7 -11.0 na na 0.0 0.0 1.10 -16.8 0.72 27.1 4.6
UZMA 1.78 1.34 1.67 11.9 12.7 14.9 14.0 0.0 0.0 2.04 -12.7 1.30 36.9 4.7
SNAPSHOT OF STOCKS UNDER COVERAGE
Company Share Price Target Price EPS (sen) PER (X) Div Yield (%) 52weeks 52weeks % Chg
BETA
(RM) (RM) FY17 FY18 FY17 FY18 FY17 FY18 High Price % Chg Low Price % Chg YTD
PLANTATIONS
FGV 1.79 1.53 1.49 6.3 11.0 28.6 16.2 2.8 2.8 2.52 -29.0 1.31 36.6 15.5
IJMPLNT 3.34 3.50 0.56 13.7 15.7 24.4 21.2 2.1 2.4 3.80 -12.1 3.22 3.7 -1.8
IOICORP 4.48 3.66 1.04 18.7 21.1 23.9 21.3 2.2 2.7 5.04 -11.1 4.07 10.1 1.8
KLK 24.20 21.12 0.94 108.2 117.7 22.4 20.6 2.2 2.4 25.00 -3.2 22.20 9.0 0.8
SIME 8.50 7.45 1.18 30.8 35.3 27.6 24.1 2.6 3.3 8.60 -1.2 7.00 21.4 4.9
UMCCA 5.96 6.54 0.47 25.5 31.1 23.4 19.2 2.7 2.7 6.21 -4.0 5.53 7.8 -0.7
PROPERTY
GLOMAC 0.70 0.68 0.61 5.5 8.0 12.8 8.8 8.6 5.7 0.87 -19.5 0.68 2.9 0.7
HUAYANG 1.09 1.29 0.64 25.2 20.3 4.3 5.4 3.7 3.7 1.45 -24.7 1.05 3.8 -3.5
IOIPG 2.18 2.16 0.93 13.3 14.9 16.4 14.6 3.2 3.7 2.65 -17.7 1.99 9.5 3.8
Note: IOIPG proposed 1 for 4 rights issue share, at an issue price of RM1.38 per rights share. Ex-Target price RM1.98. For more detail please refer to 21.11.16
MAHSING 1.49 1.60 0.69 14.5 12.5 10.3 11.9 4.0 3.7 1.70 -12.4 1.24 20.2 4.2
SNTORIA 0.74 0.84 0.33 9.1 14.6 8.1 5.1 2.7 2.7 0.88 -15.9 0.69 7.2 -7.5
SPSETIA 3.20 3.45 0.69 26.6 23.9 12.1 13.4 4.2 4.1 3.59 -10.9 2.80 14.3 2.2
SUNWAY 3.04 3.26 0.48 28.4 34.0 10.7 8.9 3.6 3.6 3.24 -6.2 2.87 5.9 0.3
REIT
SUNREIT 1.72 1.79 0.53 8.9 10.1 19.4 17.0 5.2 5.9 1.84 -6.5 1.44 19.4 0.0
CMMT 1.61 1.81 0.73 8.7 9.1 18.6 17.7 5.4 5.7 1.62 -0.6 1.39 15.8 5.2
POWER & UTILITIES

MALAKOF 1.36 1.70 na 9.0 8.4 15.2 16.2 4.6 4.3 1.80 -24.4 1.26 7.9 -0.7
PETDAG 23.80 18.51 0.90 90.2 92.5 26.4 25.7 2.6 2.7 26.30 -9.5 22.16 7.4 0.0
PETGAS 20.90 19.67 0.81 88.9 92.4 23.5 22.6 2.8 2.9 23.16 -9.8 20.36 2.7 -1.9
TENAGA 14.00 17.19 1.07 132.1 130.6 10.6 10.7 2.5 2.6 14.90 -6.0 12.60 11.1 0.7
YTLPOWR 1.46 1.84 0.61 9.1 11.2 16.0 13.0 6.8 6.8 1.64 -11.0 1.38 5.8 -2.0
TELECOMMUNICATIONS
AXIATA 4.69 5.35 1.16 20.7 24.0 22.6 19.5 3.6 4.2 6.20 -24.4 4.11 14.1 -0.6
DIGI 4.88 4.95 0.97 21.2 21.5 23.1 22.7 4.3 4.4 5.25 -7.0 4.31 13.2 1.0
MAXIS 6.12 5.80 0.72 24.7 25.7 24.8 23.8 3.3 3.3 6.64 -7.8 5.36 14.2 2.3
TM 6.11 7.95 0.70 25.2 27.6 24.3 22.2 3.7 4.1 6.90 -11.4 5.81 5.2 2.7
TECHNOLOGY
Semiconductor & Electronics
IRIS 0.15 0.14 1.12 -0.6 1.6 na 8.8 0.0 0.0 0.24 -39.6 0.10 45.0 31.8
INARI 3.56 4.10 0.80 21.5 25.7 16.6 13.9 1.2 1.4 3.63 -2.0 2.57 38.8 7.2
Note: INARI proposed bonus issue shares on the basis of 1 for 1. For more detail please refer to 24.11.16 report.
MPI 7.83 9.40 0.53 88.9 101.9 8.8 7.7 2.9 2.9 10.48 -25.3 6.86 14.1 5.7
UNISEM 2.53 2.85 0.77 27.2 29.3 9.3 8.6 4.7 4.7 2.77 -8.7 1.94 30.4 7.2
TRANSPORTATION
Airlines
AIRASIA 2.51 2.79 1.14 37.2 39.4 6.7 6.4 1.6 2.0 3.30 -23.9 1.29 94.6 9.6
AIRPORT 6.25 6.64 1.45 9.3 9.7 66.9 64.5 1.4 1.4 7.30 -14.4 5.43 15.1 3.1
Freight & Tankers
TNLOGIS 1.55 2.03 0.89 21.6 24.0 7.2 6.5 3.5 4.5 1.76 -11.9 1.13 37.2 -2.5
WPRTS 4.30 4.82 0.66 19.3 20.2 22.3 21.3 3.4 3.5 4.59 -6.3 3.62 18.8 0.0
SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE

Company Share Price Target Price EPS (cent) PER (X) Div Yield (%) 52week 52week % Chg
Beta
(S$) (S$) FY17 FY18 FY17 FY18 FY17 FY18 High Price % Chg Low Price % Chg YTD
BANKS & FINANCIAL SERVICES
DBS 18.12 16.90 1.18 187.0 206.2 9.7 8.8 3.3 3.3 18.4 -1.5 13.01 39.3 4.5
OCBC 9.25 8.50 1.11 87.7 90.6 10.5 10.2 5.7 6.7 9.5 -2.1 8.84 24.8 3.7
UOB 20.87 19.60 1.07 200.8 219.8 10.4 9.5 3.4 3.4 21.4 -2.2 16.80 24.2 2.3
PLANTATIONS
WILMAR 3.75 3.45 0.92 28.3 29.8 13.3 12.6 2.1 2.1 3.8 -0.3 2.61 43.7 4.5
IFAR 0.54 0.48 1.14 3.9 4.1 13.7 12.9 0.7 0.8 0.6 -14.4 0.41 30.5 1.9
BUY : Total return within the next 12 months exceeds required rate of return by 5%-point.
HOLD : Total return within the next 12 months exceeds required rate of return by between 0-5%-point.
SELL : Total return is lower than the required rate of return.
Total Return is defined as expected share price appreciation plus gross dividend over the next 12 months.
Required Rate of Return of 7% is defined as the yield for one-year Malaysian government treasury plus assumed equity risk premium.
IPO
Friday, 13 January 2017
FBM KLCI: 1,677.76
Sector: REIT
KIP Real Estate Investment Trust Fair Value: RM 1.09

Community-Centric Retail Centres REIT Main Market Listing
THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Not Rated
Thiam Chiann Wen Tel: +603-2167 9615 cwthiam@ta.com.my www.taonline.com.my
Background Share Information

KIP REITs portfolio comprises 6 retail centres with a combined lettable area Lis ting Main Market
(LA) of approximately 939,000 sq. ft. Scheduled to be listed on 6 February 2017, Enla rged Share Capital (mn) 505.3
KIP REIT is expected to raise RM234.2mn, based on the IPO price of RM1.00. Market Cap @ RM1.00 (RM mn) 505.3
Par Va lue (RM) 1.00
IPO Structure Is s ue price (RM) 1.00
No. of offer % of total Units Estima ted free float (%) 43.7
Beakdown of the Offering:
units (mn) upon listing Tentative listing da te 6-Feb-17
Reta i l Offeri ng: 13.5 2.67
Ins ti tuti ona l offe ri ng: 220.7 43.67
Total Offering 234.2 46.34 Tentative Listing Dates
Cons i dera ti on Uni ts 271.2 53.66 Event Tentative Date
Total units in circulation 505.3 100.00 Opening of the IPO 30-Dec-16
Source: Prospectus, TA Securities Clos ing of the IPO 16-Jan-17
Balloting of Applications 18-Jan-17
Investment Case Allotment of Sha res 3-Feb-17
Diversified portfolio in terms of geographical location and tenant base Lis ting 6-Feb-17
Attractive organic and inorganic growth prospects
Solid financial position with low gearing level
Ratio & Analysis
Forecast and Valuation NTA per s ha re (pos t IPO) (s en) 0.98
We estimate FY17 & 18 earnings growth to be relatively flattish but anticipate Price to NTA (x) 1.02
FY19 distributable income to increase ~3% YoY to RM34.4mn primarily due to Proforma ROE (%) 6.7
higher rentals collections, as well as margin improvement due to better Proforma ROA (%) 5.6
operation efficiencies for the malls, post refurbishment. Given that the trust Proforma Gearing (x) 0.14
intends to pay out 100% of its distributable income as dividend, we project KIP
REIT to pay out 6.58-6.63sen per unit in FY17 and 18. This will translate to DPU
yield of ~6.6%, based on the IPO price of RM1.00. We derive a fair value of Utilisation of Proceeds RM(mn) %
RM1.09 based on DDM approach with a required rate of return and terminal Acquis ition 222.1 94.9
growth rate of 7.6% and 1.5% respectively. Lis ting Expens es 10.9 4.7
Fina ncing Facilities Expenses 1.1 0.5
Earnings Summary (RM mn) TOTAL 234.2 100.0
FYE June 2014# 2015# 2016# 2017f 2018f 2019f

Total Revenue 55.9 61.8 64.4 64.2 65.0 66.5
Net Property Income 32.8 38.3 42.2 42.0 42.6 43.9
NPI Margin (%) 58.6 61.9 65.6 65.4 65.5 66.0
Pretax profit 33.3 33.5 34.4
Distributable income 33.3 33.5 34.4
EPU (Sen) 6.6 6.6 6.8
EPU Growth (%) nm 0.7 2.8
PER (x) 15.2 15.1 14.7
DPU (sen) 6.6 6.6 6.8
Div Yield (%) 6.6 6.6 6.8
#: Proforma
Source: Company, TA Securities
Page 1 of 9
TA Securities
Background
KIP Real Estate Investment Trust (REIT) is principally invested in a portfolio of
income generating properties used primarily for retail purposes. Focusing
towards community-centric retail centres, KIP REIT keeps a long term
investment horizon, with a holding period of at least five years. It has an initial
portfolio of 6 community-centric retail centres worth RM580.0mn.
KIP REIT is scheduled to be listed on 6 February 2017. Based on the IPO price of
RM1.00/unit, KIP REITs market capitalisation will be RM505.3mn. The trustee,
Pacific Trustees Berhad, on behalf of KIP REIT has entered into SPAs to acquire
properties from the vendors for a purchase consideration of RM580.3mn, to be
satisfied via the issuance of 271.15mn consideration units and cash
consideration of RM309.1mn, which will be funded from listing proceeds and
borrowings.
Figure 1: Trust Structure
Source: Prospectus, TA Securities
IPO Structure
KIP REITs IPO consists of an institutional offering and retail offering, totaling
up to 234.2mn new units see Figure 2. The Promoters will eventually own a
53.7% stake in KIP REIT post IPO exercise- see Figure 3.
Figure 2: IPO Structure

No. of offer % of total Units
Beakdown of the Offering:
units (mn) upon listing
Retail Offering:
Ma l a ys i a n publ i c vi a ba l l oti ng
- Bumi pute ra 5.1 1.01
- non-bumi putera 5.1 1.01
El i gi bl e Pe rs ons 3.3 0.65
Sub-total 13.5 2.67
Institutional offering:
- MITI-a pprove d bumi putera i nves tors 58.1 11.50
- Other I ns ti tuti ona l i nve s tors 162.6 32.17
Sub-total 220.7 43.67
Total Offering 234.2 46.34
Cons i de ra ti on Uni ts 271.2 53.66
Enlarged Share Cap 505.3 100.00
Page 2 of 9
TA Securities
Figure 3: Estimated shareholding structure upon listing
Portfolio Details
KIP REITs initial portfolio consists of five-community-centric retail centres
known as KiP Mart and a neighbourhood retail centre known as KiP Mall see
Figure 4. These assets are mainly situated in the southern states of Malaysia,
namely three locations in Johor and one each in Negeri Sembilan, Melaka and
Selangor see Figure 5.
KiP Mart is an established name in Johor. It is known as a one-stop community-

centric retail centre, catering to communities within the lower to middle income
group. Each KiP Mart has a wide range of retailers, including fresh market,
supermarkets, general merchandise stores, convenience stores, boutiques,
telecommunication shops, gold smith and jewelry shops and food courts.
Community retail centres such as KiP Marts represent a viable alternative to the
traditional hypermarket and neighbourhood centres by providing competitive
offerings to the lower to middle income groups in smaller towns and secondary
market in Malaysia.
On a pro-forma basis, the 3 KiP Marts in Johor collectively contributed 59% and
65% of the Trusts FY16 revenue and net property income (NPI) respectively
see Figure 6 and 7. In terms of trade mix, KIP REIT offers a wide range of retail
stores see Figure 8. As at 31 Oct 2016, fashion apparel outlets and fresh
market and supermarket were the key contributors to gross rental income,
contributing 27% and 25% respectively. Meanwhile, food and beverage
accounted for 12% of gross rental income see Figure 9.
Figure 4: Portfolio Details

KiP Mart
KiP Mart KiP Mart Kota KiP Mart KiP Mart
Lavender KiP Mall Bangi
Tampoi Tinggi Masai Melaka
Senawang
Commencement Date Dec-04 Nov-08 Jan-11 Dec-12 Mar-14 Mar-15
Appraised value as at
150,000 55,000 157,000 38,000 50,000 130,000
Mar-16 (RM'000)
Purchase consideration
150,043 55,002 157,007 38,071 50,168 130,000
(RM'000)
Subject Properties
weighting (by Appraised 25.9 9.5 27.1 6.5 8.6 22.4
Value) (%)
163,669 72,232 143,204 115,640 182,345 261,710

LA as at Oct-16 (sq ft)
234,321 113,958 247,990 175,095 276,987 348,203

GFA as at Oct-16 (sq ft)
Number of tenancies as
277 153 260 76 80 160
at Oct-16
Occupancy rate for the
97.3 94.6 92.6 72.6 65.8 90.3
4M ended Oct-16 (%)
Number of car park bays
579 196 628 584 520 475
as at Oct-16
Number of motorcycle
210 112 214 85 140 65
bays as at Oct-16
Page 3 of 9
TA Securities
Figure 5: Assets Location
Figure 6: Revenue Breakdown by Properties Figure 7: Net Property Income Breakdown by Properties
Source: Prospectus, TA Securities Source: Prospectus, TA Securities
Figure 8: Breakdown of trade mix by Lettable Area Figure 9: Breakdown of trade mix by Gross Rental Income
Page 4 of 9
TA Securities
Promoters and Management Team
Dato Chew Lak Seong and Dato Ong Kook Liong are the Promoters of KIP REIT.
The promoters are also the founders of the KIP group of companies. Post IPO,
the Promoters will eventually own a 53.7% stake in KIP REIT. The management
team is led by the Chief Executive Officer, Lim Han Gie, who joined KIP group of
companies as the general manager supervising the property development
projects and the operations of KiP Marts in Malaysia.
Investment Case
1) Diversified portfolio in terms of geographical location and tenant base
2) Attractive organic and inorganic growth prospects
3) Solid financial position with low gearing level
Diversified portfolio in terms of geographical location and tenant base

KIP REITs portfolio assets are spread across townships in Johor, Negeri
Sembilan, Melaka and Selangor. These assets are also located in strategic
locations, which are easily accessible from main roads of their respective towns.
In addition, they are also largely situated in proximity to major residential
catchment comprising neighbourhoods with residents within the lower to
middle-income brackets, which augurs well with its target catchment market.
KIP REIT's gross rental income is well distributed within its portfolio of 1,006
tenants as at 31 Oct 2016. No single tenant contributed more than 5% of the
trusts gross rental income. The top ten tenants of the trust contributed an
aggregate of 12% to gross rental income and collectively occupied 42% of the
portfolios occupied lettable area (LA) as at 31 Oct 2016.
Attractive organic and inorganic growth prospects

Organic growth. It has spent RM0.4mn, RM5.2mn and RM9.2mn in FY14, FY15,
and FY16 respectively and bulk of the capex spent in FY15 and FY16 was used
to fund the extension of new wings for KiP Mart Tampoi and KiP Mart Masai
with additional LA of 25,937 sq ft and 15,794 sq ft respectively. NPI for KiP Mart
Tampoi and KiP Mart Masai respectively increased 24% YoY in FY15 and 8%
YoY in FY16 following the completion of the new wings. Going into FY17 and
FY18, KIP REIT intends to carry out major upgrading works for KiP Mart Tampoi
and KiP Mall Bangi. Total capex is estimated at RM9.1mn for the next two years.
We are positive on the asset enhancement initiatives (AEIs) and expect the AEIs
to generate positive returns to the trust upon completion.
Inorganic growth. We are also optimistic of KIP REITs prospects in terms of

inorganic growth opportunities. The trustee currently holds the Right of First
Refusal (ROFR) for the acquisition of KiP Mall Kota Warisan, KiP Mart Sendayan,
KiP Mart Sungai Buloh, KiP Mart Kuantan and KiP Mart Sungai Petani. KiP Mall
Kota Warisan is currently under construction and is expected to be completed
in 2017, whilst the other properties in their planning stages and expected to be
completed by 2019. The promoter have also provided the Trustee with a ROFR
for the acquisition of retail properties including purpose-built community-
centric retail centres of similar concept to KiP Mart and those within mixed
developments. In addition, the REIT would also explore acquisition
opportunities with third parties.
Solid Financial Position with low gearing level

Based on KIP REITs pro forma statement of financial position, its gearing ratio
(debt to asset ratio) upon listing will be approximately 14%, which is lower than
that of the average Malaysian REIT of approximately 30% as at 30 Sep-16 see
Figure 10. This offers KIP REIT the opportunity to undertake borrowings for
future acquisitions or any asset enhancement that it intends to make. Having
said that, KIP REIT has the flexibility to borrow additional RM204mn before
Page 5 of 9
TA Securities
reaching the statutory gearing cap of 50%. With that, we believe KIP REIT has
no issue to fund the budgeted capex of RM9.1mn for FY17-18.
Figure 10: Gearing Level Comparison
Source: Company, Bloomberg, TA Securities
Risks
1) Major tenancies renewal to take place in FY17
2) Rising retail supply
Major tenancies renewal to take place in FY17

Tenancy renewal risk in the near term is substantial given 42% of LA due for
renewal in FY17 see Figure 11. Notably, KiP Mart Masai, KiP Mart Lavender
Senawang and KiP Mall Bangi will have their major tenancies renewal in FY17.
While there is a risk of non-renewal, we see this as an opportunity for KIP REIT
to reposition its trade mix and replace the non-performing tenants with quality
ones, providing the trust with brighter rental prospect in the future.
Figure 11: Tenancy Expiry Profile - % of Occupied LA expiring Figure 12: Tenancy Expiry Profile - % of gross rental income
expiring
Rising retail supply in Johor

Based on the independent property market report, there is a potential dilution
of retail market share, as there are 16 developments with total NLA of 6.7mn sq.
ft. under construction and scheduled to open by 2018 in the selected districts in
Johor (i.e. Johor Bahru and Kota Tinggi) where the KiP Marts are located. Given
that there is a total existing retail space of 12.9mn sq. ft. of NLA in these two
districts, incoming supply of retail space represents a whopping 52% space
increase over the next 2 years. Nevertheless, we believe the upcoming retail
spaces, which mainly comprises megamalls, namely Southkey Megamall (1.5,mn
sq ft NLA), Paradigm Mall (1.3mn sq ft NLA) and Capital 21 (1.0mn sq ft NLA)
Page 6 of 9
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would have minimal impact on KiP Marts as they are not directly competing
with one another.
Financial Highlights and Earnings Forecasts

As of FY16, KIP REIT had recorded a 2-year CAGR of 7.3% and 13.6% in terms
of total revenue and net property income respectively. Higher revenue could be
attributed to additional LA following the completion of new wing extensions at
KiP Mart Tampoi and KiP Mart Masai, as well as higher rental rates from renewal
of expired tenancies. NPI margins improved to 66% in FY16 from 59% recorded
in FY14. The margin expansion was largely due to lower upkeep and
maintenance costs incurred following the completion of refurbishment,
specifically for KiP Mart Tampoi and KiP Mart Masai.
We estimate FY17 & 18 earnings growth to be relatively flattish, as the loss of

income due to major renovations in KiP Mart Tampoi and KiP Mall Bangi are
expected to offset the higher rental rates from new/renewed leases. Meanwhile,
we expect FY19 distributable income to increase ~3% YoY to RM34.4mn
primarily due to higher rentals collections, as well as margin improvement due
to better operation efficiencies for the malls post refurbishment. Note that our
assumptions only account for organic growth (higher rental reversion).
Figure 13: Financial Highlights
Distribution Policy
KIP REIT intends to distribute up to 100% of its distributable income for FY17
and FY18 and thereafter at least 90% of its distributable income, on a half yearly
basis. We project KIP REIT to pay out 6.58 6.63 sen per unit for FY17 & 18,
representing a 100% payout ratio. This translates to DPU yields of ~6.6% based
on the IPO price of RM1.00. For FY19, we forecast the trust to distribute 6.82 sen
per unit or 95% of its distributable income to unitholders, translating a yield of
6.8%.
Valuation
Based on the NAV/unit of RM0.98 upon listing, KIP REITs P/NAV is estimated
at about 1.02x (based on IPO price of RM1.00). On an average basis, this is
slightly lower than what other MREITs are currently trading at. We derive our
fair value of RM1.09, based on DDM valuation (cost of equity: 7.6%, terminal
growth: 1.5%). At RM1.09, the implied FY18 dividend yield would work out to
6.0%, which is slightly higher than sectors target yield of 5.5%. We think it is
fair for investors to demand for yield given its small asset base and market
capitalization.
Page 7 of 9
TA Securities
Earnings Summary (RM mn)
FYE June 2014# 2015# 2016# 2017f 2018f 2019f
Total Revenue 55.9 61.8 64.4 64.2 65.0 66.5
Net Property Income 32.8 38.3 42.2 42.0 42.6 43.9
NPI Margin (%) 58.6 61.9 65.6 65.4 65.5 66.0
Pretax profit 33.3 33.5 34.4
Distributable income 33.3 33.5 34.4
EPU (Sen) 6.6 6.6 6.8
EPU Growth (%) nm 0.7 2.8
PER (x) 15.2 15.1 14.7
DPU (sen) 6.6 6.6 6.8
Div Yield (%) 6.6 6.6 6.8
#-: Proforma
Source: TA Securities
Malaysian REITs Sector Comparison

Market Cap Total Asset
Price (RM) NAV (RM ) P/NAV (x) Gearing (x)
(RM mn) (RM mn)
Atri um 1.09 132.8 1.42 0.77 238.8 0.25
Tower 1.20 336.6 1.94 0.62 568.3 0.00
KIP 1.00 505.3 0.98 1.02 597.8 0.14
Al -Sa l a m 1.04 603.2 0.98 1.06 916.2 0.38
Ama na hra ya 0.93 530.2 1.19 0.78 1,101.4 0.33
He kta r 1.60 641.0 1.46 1.10 1,116.3 0.44
UOA 1.83 773.9 1.65 1.11 1,135.3 0.33
Al -Aqa r He a l thca re 1.57 1,143.3 1.21 1.30 1,594.4 0.41
MRCB-Qui l l 1.27 1,356.4 0.85 1.50 1,625.2 0.42
AmFi rs t 0.81 556.0 1.28 0.63 1,728.1 0.46
Axi s 1.63 1,801.4 1.22 1.33 2,141.5 0.34
YTL Hos pi ta l i ty 1.16 1,977.1 1.13 1.03 3,621.9 0.44
CMMT 1.61 3,270.6 1.28 1.26 4,091.8 0.31
Pa vi l i on 1.82 5,501.0 1.27 1.43 4,750.8 0.16
I GB 1.71 5,973.8 1.05 1.63 5,170.0 0.24
Sunwa y 1.72 5,065.5 1.35 1.27 6,537.3 0.33
KLCC 7.83 14,135.8 4.31 1.82 17,537.1 0.15
Sector Ave ra ge 1.16 0.30
Source: Bloomberg, TA Securities
Peers Comparison
Price Target price Market Cap PER (x) Div Yield (%) P/NAV
Recommendation
(RM) (RM) (RM bn) FY17 FY18 FY17 FY18 FY17 FY18
Sunway REIT Sell 1.72 1.79 5.1 19.4 17.0 5.2 5.9 1.2 1.2
CMMT Buy 1.61 1.81 3.3 18.6 18.1 5.8 5.9 1.3 1.3
KLCCP Stapled Group* NR 7.83 NR 14.1 18.5 17.8 4.8 4.9 1.1 1.1
IGB REIT* NR 1.71 NR 6.0 20.6 19.4 5.2 5.5 1.6 1.6
Pavilion REIT* NR 1.82 NR 5.5 20.2 19.4 4.9 5.2 1.4 1.4
Axis REIT* NR 1.63 NR 1.8 18.1 17.3 5.5 5.7 1.3 1.3
Al Salam* NR 1.04 NR 0.6 16.3 16.0 5.7 5.8 1.0 1.0
Average 18.8 17.9 5.3 5.5 1.3 1.3
KIP REIT 1.00 1.09 0.5 15.2 15.1 6.6 6.6 1.0 1.0
* Based on consensus number
Source: Bloomberg, TA Securities
Page 8 of 9
TA Securities
( T HI S P AGE I S I NT E N T I ON AL L Y L E FT B L ANK)
Stock Recommendation Guideline

Not Rated: The company is not under coverage. The report is for information only.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and
opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts.
We accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may
have an interest in the securities and/or companies mentioned herein.
For TA SECURITIES HOLDINGS BERHAD(14948-M)
Page 9 of 9
TA Securities
COMPANY UPDATE
A Member of the TA Group FBM KLCI: 1,677.76
MENARA TA ONE, 22 JALAN P. RAMLEE, 50250 KUALA LUMPUR, MALAYSIA TEL: +603-20721277 / FAX: +603-20325048 Sector: Finance
N
Malayan Banking Berhad et TP: RM8.00 (-3.7%)
Maybank Indonesia to Sell Stake in WOM Finance Last Traded: RM8.31
THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* SELL
TA Research Team Coverage Tel: +603-2167 9610 liwong@ta.com.my www.taonline.com.my
Disposing stake in WOM Finance Share Information

Malayan Banking Berhad (Maybank) announced on the Bursa Malaysia that Bloomberg Code MAY MK
Stock Code 1155
Maybank Indonesia had entered into a conditional shares purchase agreement
Listing Main Market
with PT Reliance Capital Management for the proposed disposal of Maybank Share Cap (mn) 10193.2
Indonesias entire equity interest of 68.55% in WOM Finance to RCM. Market Cap (RMmn) 84705.5
Par Value 1.00
52-wk Hi/Lo (RM) 9.20/7.50
The Proposed Disposal involves the sale of Maybank Indonesias entire equity
12-mth Avg Daily Vol ('000 shrs) 9409.5
interest in WOM Finance to RCM for a total cash consideration of approximately Estimated Free Float (%) 32.7
Rp 673.77bn (equivalent to approximately RM229.08 mn), plus the difference Beta 0.95
between the book value of WOM Finance as set out in the audited accounts of Major Shareholders (%)
Skim Amanah Saham Bumiputra - 35.6
WOM Finance for the financial year ended 31 December 2016 and the financial EPF - 14.7
year ended 31 December 2015 in proportion to Maybank Indonesias 68.55% Yayasan Pelaburan Bumiputra - 6.5
equity interest in WOM Finance.
Forecast Revision
FY16 FY17
Minimal impact from sale, some gains to be recognised Forecast Revision (%) - -
We estimate the deal to be valued between 1.2-1.3x PBV. We are slightly Net profit (RMm) 6,114.7 7,419.7
positive on this sale as it is in line with Maybanks effort to streamline Consensus 6,227.0 6,822.0
operations and optimise capital usage. Although WOM Finance makes up TA's / Consensus (%) 98.2 108.8
Previous Rating Hold (Downgraded)
around 30% of Maybank Indonesias PBT, the impact from the sale to the group
is not material, contributing to less than 3% of Maybanks PBT. Nevertheless, Financial Indicators
we foresee possible gains from this sale to give some boost to 2017 earnings. FY16 FY17
The proposed disposal is expected to complete by the 1Q. ROE (%) 9.7 11.2
ROA (%) 0.8 1.0
CTI Ratio (%) 48.7 48.1
Vehicle financing remains challenging in Indonesia Gross NPL Ratio (%) 2.5 2.5
We note that the vehicle financing market remains challenging in Indonesia, BV/ Share (RM) 6.6 7.0
with demand for 2 and 4 wheel vehicles contracting YoY. Operationally, WOM Price/ BV (x) 1.3 1.2
Finance recently turned around, reporting 9M16 PBT of Rp 73bn (from loss of Share Performance (%)
Rp 22bn in 9M15) on the back of more intense collection efforts. ROE dipped Price Change Maybank FBM KLCI
from 13.4% in 2013 to 2.1% in 2.15 before recovering back to 9.8% in 9M 1 mth 1.3 2.2
2016. In terms of asset quality, WOM Finances net NPL and gross NPL ratios 3 mth 5.2 0.3
6 mth 3.6 1.5
have deteriorated slightly to 1.36% and 3.84% in September 2016 from 1.01% 12 mth (3.1) 0.6
and 2.95% a year ago.
(12-Mth) Share Price relative to the FBM KLCI
Impact and valuation
We make no change to our earnings estimates, at this juncture. TP is
maintained at RM8.00. This translates to a reasonable implied FY17e PBV of
1.17x. The industry is currently trading at average PBV of 1.1x. However, given
that share price had risen sharply in recent weeks, we downgrade Maybank
from hold to SELL on the back of the potential downside risk in share price.
Key upside/downside risks to our fair value include: 1) solid improvement in

overseas operations, 2) potentially stronger earnings from cross border
internal strategies within its regional operations, 3) better contributions from a Source: Bloomberg
pickup in capital market activities and the insurance and takaful business, 4)
pricing pressure resulting in pressure on NIM, and 5) potential rise in defaults
in the groups O&G exposure in Singapore.
Page 1 of 2
TA Securities
Financial Summary (RMmn)

Income Statement Key Financial Ratios and Margins
FYE 31 Dec (RMmn) FY14 FY15 FY16e FY17e FY18e FYE 31 Dec (RMmn) FY14 FY15 FY16e FY17e FY18e
Interest income 17,851.7 19,792.8 21,352.9 22,735.1 24,099.6 Return and efficiency
Interest expense (8,148.0) (8,678.7) (9,969.8) (10,775.9) (11,737.2) ROE (%) 13.6% 13.6% 11.9% 9.7% 11.2%
Net interest income 9,703.7 11,114.1 11,383.1 11,959.2 12,362.4 ROA (%) 1.1% 1.1% 1.0% 0.8% 1.0%
Islamic banking income 3,271.2 3,938.6 4,411.3 4,852.4 5,337.6 Net interest margin (%) 1.7% 1.7% 1.8% 1.7% 1.7%
Total non-interest income 5,555.7 6,185.1 6,432.2 6,808.9 7,405.8 Int income/total income (%) 52.4% 52.4% 52.3% 51.2% 50.6%
Total income 18,530.6 21,237.9 22,226.6 23,620.5 25,105.8 Non-interest/total income (%) 29.9% 29.9% 27.2% 26.9% 26.7%
Overhead expenses (9,111.3) (10,285.0) (10,593.6) (11,123.3) (11,790.7) Cost-to-income (%) 49.2% 49.2% 49.4% 48.7% 48.1%
Operating profit 9,419.3 10,952.9 11,633.0 12,497.2 13,315.2
Loan loss provisioning (470.8) (2,012.6) (3,600.6) (2,747.7) (2,283.9) Balance sheet
Associates contributions 163.1 211.2 211.2 211.2 211.2 Loans growth (%) 13.3% 13.3% 12.3% 6.6% 6.9%
Profit before tax 9,111.6 9,151.5 8,243.6 9,960.7 11,242.5 Gross Impaired Loans ratio (%) 1.5% 1.5% 1.9% 2.5% 2.5%
Taxation (2,200.5) (2,165.2) (1,978.5) (2,390.6) (2,698.2) Net Impaired Loans ratio (%) 1.0% 1.0% 1.4% 1.8% 1.8%
Minority interests (194.6) (150.4) (150.4) (150.4) (150.4) Collective Allowance ratio (%) 1.0% 1.0% 0.9% 0.9% 1.0%
Net profit 6,716.5 6,835.9 6,114.7 7,419.7 8,393.8 Loan loss reserves (%) 1.5% 1.5% 1.4% 1.7% 1.7%
Loan loss coverage (%) 95.6% 95.6% 72.0% 66.0% 67.7%
Balance Sheet Statement Deposit growth (%) 11.1% 11.1% 8.8% 8.5% 8.6%
FYE 31 Dec (RMmn) FY14 FY15 FY16e FY17e FY18e LD ratio (%) 93.2% 93.2% 96.1% 94.5% 93.0%
Cash and short-term funds 52,852.9 55,647.4 64,838.7 72,315.1 80,537.7 Investment statistics
Deposit with FIs 16,106.1 13,618.3 13,618.3 13,618.3 13,618.3 PER (x) 12.61 12.61 12.39 13.85 11.42
Marketable securities 119,535.9 129,858.6 129,858.6 129,858.6 129,858.6 PBT growth rate (%) 2.7% 2.7% 0.4% -9.9% 20.8%
Total current assets 188,494.9 199,124.3 208,315.6 215,792.0 224,014.6 EPS (sen) 65.89 65.89 67.06 59.99 72.79
Net loans and advances 403,513.1 453,492.6 482,017.4 514,819.7 551,596.3 EPS growth rate (%) 2.5% 2.5% 1.8% -10.6% 21.3%
Fixed assets 3,283.6 3,378.3 3,378.3 3,378.3 3,378.3 BV per share (RM) 5.43 5.43 6.32 6.58 6.97
Takaful Fund assets 4,972.1 4,355.7 4,573.4 4,802.1 5,042.2 PBV (x) 1.53 1.53 1.31 1.26 1.19
Other long-term assets 40,036.3 47,993.7 49,634.0 54,089.2 58,849.6 DPS (sen) 57.00 57.00 54.00 45.00 48.00
Total assets 640,300.0 708,344.5 747,918.7 792,881.3 842,881.0 Dividend yield (%) 6.4% 6.9% 6.5% 5.4% 5.8%
Customer deposits 439,569.4 478,150.5 518,814.3 563,213.6 611,743.6 PBT Breakdown - By Geographical Segment
Deposits from other FIs 57,387.4 56,671.8 54,971.7 53,322.5 51,722.8 FYE 31 Dec FY11 FY12 FY13 FY14 FY15
Repurchase securities 3,166.4 4,498.6 3,598.9 2,879.1 2,303.3 Malaysia 76% 70% 70% 71% 73%
Bills and acceptances 2,017.6 1,803.2 1,803.2 1,803.2 1,803.2 Singapore 14% 14% 14% 14% 16%
Borrowings 58,619.2 79,867.6 78,260.6 76,701.9 75,189.8 Indonesia 5% 7% 7% 3% 4%
Liabilities to policyholders 24,798.8 23,839.3 24,316.1 24,802.5 25,298.5 Others 5% 9% 9% 11% 8%
Total liabilities 585,558.8 644,831.0 681,764.8 722,722.7 768,061.2
Minority interest 1,766.6 1,818.5 1,968.9 2,119.4 2,269.8
Shareholders' funds 52,974.6 61,695.0 64,185.0 68,039.3 72,549.9

Disclaimer
for TA SECURITIES HOLDINGS BERHAD(14948-M)
Page 2 of 2
RESULTS UPDATE
FBM KLCI: 1,677.76
Sector: Oil and Gas
Pantech Group Holdings Berhad TP: RM0.52 (+11.8%)

Better Earnings Going Forward Last Traded: RM0.47
THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY* Buy
Abel Goon Tel: +603-2072 1277 ext. 1641 abelgoon@ta.com.my www.taonline.com.my
Review 2 Share Information

Pantechs 9MFY17 core net profit of RM19.3mn (-27.6% YoY) was below 8 Bloomberg Code PGHB MK
Stock Code 5125
our expectations and consensus, accounting for 55% and 58% of full-year
Listing Main Market
estimates respectively. Share Cap (m) 738.8
The earnings miss was due to intense competition amidst weaker demand, Market Cap (RMm) 343.5
which reduced ASPs and ultimately squeezed margins significantly. Par Value (RM) 0.2
YTD, operating margins contracted by 2ppt and 3ppt for the trading and 52-wk Hi /Lo (RM) 0.52/0.44
12-mth Avg Dai ly Vol ('000) 435.5
manufacturing segments respectively. On the other hand, sequential Esti mated Free Float (%) 37.8
operating margins were slightly better in 3QFY17, with expansion of Beta 1.2
2ppt/3ppt for the trading/manufacturing segments. Nevertheless, it was Major Shareholders (%)
unable to offset a weak 1HFY17 as previously expected. CTL Capital - 18.0
GL-Management - 13.0
Additionally, revenue in 3QFY17 was subdued, and declined 4.6% QoQ and
Koperasi Permodalan Felda - 9.9
31.2% YoY as demand for Pantechs products (besides stainless steel
products) remained weak. Forecast Revision (%)
Conversely, core net profit was higher at RM6.4mn (QoQ: 28.4%, YoY: - FY17 FY18
47.7) compared to 2QFY17 due to margin expansion, underpinned by Forecast Revisi on (%) (21.1) (29.0)
Net profi t (RM mn) 27.5 31.8
higher other operating income (realised forex, interest income, etc.) and Consensus 33.0 40.4
better margins across both segments. TA/Consensus 83 79
We expect Pantechs 4QFY17 and FY18 to be significantly better as 1) Previous Rating Buy (Maintai n)
stronger crude oil price of USD50/bbl improves sentiment, and hence
Financial Indicators
increases demand for the Groups products, and 2) contribution from its
FY17 FY18
stainless-steel plant increases. Net debt/equity (x) 0.1 0.1
To recap, management shared that its stainless steel plant is working at full NTA/Share (RM) 0.7 0.7
capacity, and have secured orders until mid-CY17. Furthermore, the Group P/NTA (x) 0.6 0.6
expects to recognise RM100mn from RAPID orders in FY17 (YTD: ROE (%) 5.2 5.8
ROA (%) 3.6 4.0
RM75mn) and RM150mn in FY18.
QoQ, utilisation rates for Pantechs carbon steel and Nautic steel plants Scorecard
dropped slightly to 65% and 55% from 70% and 60% respectively. On the % of FY
other hand, its stainless steel plant in Pasir Gudang reached 100% vs TA 55 Below
vs Consensus 58 Below
utilisation rate as demand for its fittings exceeded expectations.
Pantech announced a third interim dividend of 0.3 sen in 3QFY17, which Share Performance
brings YTD payout for FY17 to 1.3 sen and implies 41% payout ratio (YTD Price Change (%) Pantech FBMKLCI
FY16: 1.6 sen, 32%). 1 mth 1.5 2.0
3 mth (2.1) 0.8
Impact 6 mth (2.0) 1.0
We adjust our EPS following issuance of the one for five bonus shares on 22 12 mth (2.8) 2.1
Dec 2016.
Additionally, we cut our earnings forecast for FY17/18/19 by (12-Mth) Share Price relative to the FBM KLCI
21.1%/29.0%/28.2% after we 1) reduce trading and manufacturing sales
and 2) accounted for margin compression, in-line with the results.
Outlook
We expect the Groups earnings to improve steadily going forward as
more RAPID orders flow-in, and demand increases as a result of higher
crude oil price. That said, given the current environment, we do not
discount the possibility of intense earnings volatility.
Moreover, its large cash pile (RM88.1mn) coupled with robust
operating cash flow (circa RM25mn per quarter) will allow Pantech to
Source: Bloomberg
maintain dividend payouts.
Page 1 of 3
TA Securities
Valuation
Due to near-term earnings volatility, we revise our valuation
methodology to P/B (previously: PER). This is consistent with other oil
and gas stocks under our coverage.
Therefore, our TP is reduced to RM0.52 based on 0.7x CY17 P/B. This
implies a 0.2x discount to our oil and gas bellwether SapuraKencana
Petroleum. We deem the discount justified as Pantech has a smaller
market cap with less direct exposure to crude oil price.
Maintain Buy on Pantech where downside is cushioned by decent
dividend yield of 3.2%-4.2% in FY17-19. Key risks to our call include
slower than expected recognition of RAPID orders and sustained margin
compression.
Figure 1: Quarterly Results Analysis

Cumulative
FYE Feb (RM mn) 3QFY17 2FYQ17 QoQ % 3QFY16 YoY% 9MFY17 9MFY16 YoY%
Revenue 99.1 103.8 (4.6) 144.0 (31.2) 326.8 404.1 (19.1)
Core EBITDA 13.7 11.4 20.3 21.7 (36.9) 40.8 55.5 (26.4)
Depreciation (3.6) (3.6) 2.0 (3.7) (2.5) (10.8) (10.9) (0.8)
Net Finance Cost (1.8) (1.6) 8.2 (2.1) (14.5) (5.2) (6.6) (21.3)
Associate & JV (0.3) 0.4 n.m. (0.1) n.m. 0.1 (0.0) n.m.
EI (0.0) 0.1 n.m. (1.2) (97.3) 0.3 4.0 (91.8)
PBT 7.9 6.6 20.5 14.6 (45.7) 24.8 41.9 (40.8)
Tax expense (1.8) (1.5) 17.4 (3.5) (48.4) (5.7) (11.3) (49.6)
Minority Interests 0.3 0.1 >100 0.0 n.m. 0.5 0.0 n.m.
Net Profit 6.4 5.1 24.3 11.1 (42.5) 19.6 30.6 (36.0)
Core Net Profit 6.4 5.0 28.4 12.3 (47.7) 19.3 26.6 (27.6)
Core EPS (sen) 1.0 0.8 28.1 2.0 (48.1) 3.2 4.4 (28.3)
DPS (sen) 0.3 0.5 (40.0) 0.5 (40.0) 1.3 1.6 (18.8)
Core EBITDA margin 14% 11% 15% 12% 14%

PBT margin 8% 6% 10% 8% 10%
Net margin 6% 5% 9% 6% 7%
Figure 2: Quarterly Segmental Analysis

3QFY17 2FYQ17 QoQ % 3QFY16 YoY % 9MFY17 9MFY16 YoY %
Revenue (RM'mn)
Trading of Pipes, Fitting & Flanges 66.2 69.4 (4.7) 113.7 (41.8) 226.9 279.2 (18.8)
Manufacturing of Pipe Fittings 47.1 48.7 (3.4) 53.9 (12.7) 148.1 172.6 (14.2)
Investments & Management 5.8 8.7 (33.7) 7.8 (25.7) 18.1 9.0 >100
Sub-total 119.0 126.8 (6.2) 175.4 (32.1) 393.1 460.8 (14.7)
Inter-segment elimination (19.9) (23.0) (13.4) (31.4) (36.4) (66.2) (56.8) 16.7
Total 99.1 103.8 (4.6) 144.0 (31.2) (23.6) (26.6) (11.2)
Operating Profit (RM'mn)

Trading of Pipes, Fitting & Flanges 5.6 4.1 37.6 11.1 (49.7) 17.6 28.5 (38.1)
Manufacturing of Pipe Fittings 5.0 3.8 31.2 6.3 (21.6) 12.7 21.0 (39.8)
Investments & Management 4.9 7.7 (36.7) 7.0 (30.0) 15.5 7.0 >100
Sub-total 15.4 15.6 (0.8) 24.4 (36.8) 45.8 56.5 (19.0)
Inter-segment elimination (5.7) (8.0) (29.0) (7.7) (26.4) (16.5) (8.2) >100
Total 9.8 7.6 28.8 16.7 (41.5) 29.3 48.3 (39.4)
Operating Margin
Trading of Pipes, Fitting & Flanges 8% 6% 10% 8% 10%
Manufacturing of Pipe Fittings 11% 8% 12% 9% 12%
Page 2 of 3
TA Securities
Figure 3: Earnings Summary

FYE Feb (RM mn) FY15 FY16 FY17E FY18F FY19F
Revenue 525.7 513.1 546.5 616.1 655.0
EBITDA 83.9 73.1 58.9 67.0 73.0
EBITDA margin (%) 16.0 14.3 10.8 10.9 11.1
Pretax Profit 58.7 53.1 36.6 43.9 49.4
Net Profit 43.2 38.0 27.8 31.8 35.9
Core Net Profit 45.1 36.3 27.5 31.8 35.9
EPS (sen) 7.4 6.2 3.8 4.3 4.9
EPS growth (%) (27.6) (15.3) (39.9) 15.6 13.0
PER (x) 6.4 7.5 12.5 10.8 9.6
DPS (sen) 3.8 2.7 1.5 1.7 2.0
Dividend yield (%) 8.0 5.7 3.2 3.7 4.2

Disclaimer
for TA SECURITIES HOLDINGS BERHAD(14948-M)
Page 3 of 3
TA RESEARCHS DAILY COMPILED LOCAL TECHNICAL REPORTS
Local Technical Reports
a. Daily Technical Stock Picks
b. Daily Stock Screen
Disclaimer
without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising
from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
T e c h n i c a l V i e w
Daily Technical Stock Picks

Malaysia FBM KLCI: 1,677.76 (+2.55, +0.15%)
Chartist: Stephen Soo Tel: +603-2167-9607 stsoo@ta.com.my www.taonline.com.my
Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD
Change High Low
Name 12-Jan Lower Mid Upper 14d 10d 30d 50d DI + DI - ADX Diff Line Signal Diff Recent Signal Signal Change
FBMKLCI 1677.76 2.55 1,682.74 1,673.44 1,606.84 1,644.89 1,682.93 68.57 1,659.09 1,640.56 1,639.70 40.19 13.50 28.20 26.69 10.13 5.09 5.039 BUY BUY - -
AFFIN 2.45 -0.05 2.54 2.45 2.30 2.39 2.47 66.09 2.42 2.36 2.30 35.28 5.78 48.42 29.50 0.04 0.04 0.006 BUY BUY - -
AFG 3.74 0.00 3.75 3.73 3.67 3.74 3.80 48.27 3.74 3.77 3.76 18.37 19.63 11.20 (1.26) -0.01 -0.01 0.002 SELL BUY - -
AMBANK 4.49 0.02 4.50 4.47 4.21 4.36 4.51 65.46 4.36 4.34 4.24 31.77 12.42 20.44 19.35 0.05 0.04 0.012 BUY BUY - -
AXIATA 4.69 -0.03 4.82 4.68 4.39 4.62 4.84 53.12 4.68 4.53 4.57 30.84 9.73 35.43 21.11 0.05 0.03 0.020 BUY BUY - -
CIMB 4.86 0.04 4.87 4.82 4.44 4.64 4.84 71.18 4.69 4.64 4.69 36.50 14.68 25.97 21.82 0.04 0.00 0.038 BUY BUY - -
DIGI 4.88 -0.03 4.99 4.88 4.84 4.93 5.02 40.42 4.89 4.94 4.96 18.36 15.50 40.17 2.86 -0.02 -0.02 (0.002) BUY SELL BUY -
GAMUDA 4.94 0.00 4.95 4.93 4.72 4.85 4.98 62.01 4.89 4.82 4.82 19.63 16.28 17.00 3.35 0.04 0.02 0.015 BUY BUY - -
GENTING 8.37 0.07 8.40 8.25 7.65 7.99 8.33 66.53 8.10 8.00 7.94 31.00 12.35 24.69 18.64 0.08 0.04 0.048 BUY BUY - -
GENM 4.82 -0.03 4.88 4.79 4.46 4.66 4.85 63.13 4.70 4.67 4.66 31.29 12.89 17.52 18.40 0.04 0.01 0.030 BUY BUY - -
IHH 6.35 -0.05 6.44 6.31 6.32 6.37 6.42 44.34 6.38 6.39 6.38 18.69 13.75 11.08 4.94 0.00 -0.01 0.002 BUY BUY - -
IOICORP 4.48 -0.02 4.54 4.46 4.33 4.42 4.52 59.51 4.46 4.41 4.40 29.62 8.57 46.00 21.05 0.03 0.02 0.011 BUY BUY - -
MALAKOFF 1.36 0.00 1.39 1.35 1.32 1.37 1.42 47.50 1.36 1.36 1.38 25.99 13.94 17.24 12.05 0.00 0.00 0.000 BUY BUY - BUY
MAXIS 6.12 0.00 6.18 6.11 5.87 6.04 6.20 54.80 6.09 6.02 5.95 22.67 14.83 15.22 7.85 0.05 0.04 0.009 BUY BUY - -
MAYBANK 8.31 0.01 8.33 8.21 7.66 8.03 8.40 67.79 8.19 7.97 7.89 32.05 19.41 26.10 12.64 0.12 0.09 0.033 BUY BUY - -
MBSB 1.01 0.01 1.05 1.00 0.86 0.92 0.98 80.18 0.94 0.91 0.91 51.20 6.98 30.97 44.22 0.02 0.01 0.010 BUY BUY - -
RHBBANK 4.95 0.02 5.00 4.94 4.58 4.79 5.00 61.40 4.84 4.79 4.75 28.25 8.33 29.87 19.92 0.05 0.02 0.024 BUY BUY - -
SIME 8.50 0.00 8.59 8.49 7.86 8.24 8.62 67.52 8.39 8.20 8.16 34.36 15.00 27.19 19.36 0.11 0.08 0.033 BUY BUY - -
TENAGA 14.00 0.00 14.06 13.96 13.57 13.82 14.07 55.16 13.89 13.89 14.03 24.27 18.98 13.29 5.29 -0.02 -0.06 0.039 BUY BUY - -
TM 6.11 -0.02 6.20 6.10 5.84 6.02 6.19 51.63 6.07 6.05 6.18 28.06 17.16 34.52 10.90 -0.01 -0.04 0.032 BUY BUY - -
WPRTS 4.30 0.01 4.30 4.25 4.22 4.30 4.37 49.86 4.30 4.31 4.31 11.83 22.09 24.29 (10.26) -0.01 -0.01 0.001 SELL BUY - BUY
AIRASIA 2.51 0.13 2.51 2.37 2.10 2.34 2.57 57.37 2.27 2.42 2.55 28.07 23.54 50.26 4.53 -0.07 -0.10 0.028 BUY BUY BUY -
AIRASIA X 0.39 0.00 0.40 0.39 0.35 0.37 0.39 59.10 0.37 0.37 0.39 26.23 15.56 20.07 10.67 0.00 -0.01 0.004 BUY BUY - -
ARMADA 0.63 0.00 0.65 0.63 0.59 0.62 0.66 53.98 0.63 0.60 0.62 28.41 15.08 26.68 7.97 0.01 0.01 0.002 BUY BUY - -
BINAPURI 0.43 0.00 0.44 0.43 0.40 0.43 0.45 51.61 0.43 0.42 0.43 27.73 19.76 23.82 14.18 0.00 0.00 0.001 BUY BUY - -
CMSB 3.97 0.08 3.97 3.89 3.81 3.89 3.97 58.50 3.90 3.86 3.79 26.32 12.14 34.79 10.46 0.03 0.03 0.001 BUY BUY - BUY
DIALOG 1.56 0.01 1.57 1.54 1.51 1.54 1.56 61.55 1.55 1.54 1.54 17.30 6.84 14.05 10.46 0.01 0.00 0.003 BUY BUY - -
ECO WORLD 1.37 0.01 1.37 1.36 1.34 1.36 1.38 54.49 1.36 1.37 1.36 10.60 10.43 10.21 0.17 0.00 0.00 0.000 BUY BUY - BUY
GADANG 1.04 -0.01 1.06 1.04 0.96 1.03 1.10 51.63 1.05 1.00 1.03 19.56 13.73 26.53 5.83 0.01 0.01 0.003 BUY BUY - -
HSL 1.64 -0.02 1.64 1.64 1.58 1.64 1.70 47.97 1.64 1.64 1.67 25.06 22.41 19.28 2.65 -0.01 -0.01 0.006 BUY BUY - -
ISKANDAR 0.90 0.00 0.91 0.90 0.79 0.85 0.90 66.26 0.86 0.83 0.85 35.45 14.74 27.90 20.71 0.01 0.01 0.008 BUY BUY - -
KIMLUN 2.20 0.05 2.20 2.17 2.10 2.15 2.21 58.59 2.15 2.13 2.15 20.72 18.25 16.84 2.46 0.01 0.00 0.005 BUY BUY - -
KKBE 1.34 0.04 1.35 1.32 1.13 1.25 1.37 59.13 1.30 1.26 1.31 40.53 18.99 23.06 21.53 0.01 0.00 0.013 BUY BUY - -
MUDAJAYA 0.90 0.00 0.91 0.90 0.81 0.89 0.97 53.38 0.90 0.85 0.87 28.57 25.56 21.62 3.02 0.01 0.01 0.000 BUY BUY - -
MRCB 1.41 0.01 1.42 1.39 1.32 1.37 1.41 63.30 1.37 1.35 1.34 22.93 9.39 22.63 13.53 0.02 0.01 0.005 BUY BUY - -
NAIM 1.67 0.01 1.70 1.65 1.26 1.53 1.80 59.34 1.65 1.48 1.47 38.83 5.35 47.02 33.48 0.06 0.05 0.016 BUY BUY - -
SKPETRO 1.70 0.02 1.73 1.69 1.56 1.66 1.77 58.17 1.70 1.61 1.56 27.08 16.09 27.81 10.99 0.04 0.04 0.000 BUY BUY - -
SUNCON 1.69 0.00 1.70 1.69 1.67 1.69 1.71 53.71 1.69 1.67 1.66 18.83 15.19 12.47 3.64 0.01 0.01 (0.001) BUY SELL - -
UEMS 1.12 0.01 1.14 1.11 1.03 1.08 1.12 68.42 1.09 1.06 1.06 28.40 15.13 16.82 13.27 0.01 0.01 0.006 BUY BUY - -
WASEONG 0.84 -0.01 0.84 0.84 0.75 0.81 0.86 58.49 0.83 0.80 0.82 31.32 25.49 18.51 5.82 0.01 0.00 0.007 BUY BUY - -
WCT 1.88 0.04 1.89 1.85 1.71 1.79 1.86 69.35 1.80 1.78 1.82 29.02 8.14 20.29 20.88 0.01 0.00 0.013 BUY BUY - -
The table above is a compilation of actively traded stocks with some popular technical indicators. The technical BUY/SELL signals on the last four columns are auto generated; the first two being
existing or recent signals while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash.
INTERPRETATION OF TECHNICAL INDICATORS:

Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy when
share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell when price
touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band.
14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day moving
average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and imply further near-term
downside risk.
Moving Averages: A stocks short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if share
price stays above the 30-day average, and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed broken if it breaches
below this level.
Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a negative
DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+ crosses below the
DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the trend. An ADX value above
25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend.
Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and the
MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff rises above
zero, and SELL signal sparked when the MACD diff value falls below zero.
Page 1 of 4
Technical Comments: Any price weakness on Bumi Armada shares should attract buyers looking for recovery upside towards the
200-day ma (70sen), with a convincing breakout to target the 38.2%FR (74sen) and 50%FR (81sen) ahead. Immediate support is from
the 30-day ma (60sen). Likewise, dips on SapuraKencana should encourage bargain hunting ahead of recovery towards the 61.8%FR
(RM1.89), with stronger resistance from the 50%FR (RM2.08). Key chart supports are at the 76.4%FR (RM1.66) and 200-day ma
(RM1.58).
BUMI ARMADA RM0.63 (UNCH)
BOLLINGER BANDS SIMPLE MOVING AVERAGES

Upper RM 0.66 10-day RM 0.63
Middle RM 0.62 30-day RM 0.60
Lower RM 0.59 50-day RM 0.62
DMI DAILY MACD
Recent Signal BUY Recent Signal BUY
Signal Change Signal Change
SAPURA KENCANA RM1.70 (+0.02)

Upper RM 1.77 10-day RM 1.70
Middle RM 1.66 30-day RM 1.61
Lower RM 1.56 50-day RM 1.56
DMI DAILY MACD
Page 2 of 4
FBMKLCI: 1,677.76
Daily Stock Screen

s
Malaysia End Day Census of 12.01.2017

Chartist: Stephen Soo Tel: +603-2167 9607 stsoo@ta.com.my www.taonline.com.my
Report Description:
The Daily Stock Screen is a retail product which can be a very useful guide for momentum trading and trading ideas .The following list is
derived from the screening of more than 1000 stocks currently listed on Bursa Malaysia to identify: the top 20 breakout, 20 breakdown, and
30 potential breakout stocks which just climbed above the middle Bollinger band, with potential to appreciate toward the upper Bollinger
band.
[MIDDLE BOLLINGER RANGEBOUND]
List of 30 Potential Breakout Stocks (Short-term BUY for upside toward Upper Bollinger Band or higher to TAKE PROFIT/SELL)
Bollinger Band RSI Moving Average
No Stock Name Price Vol 20-day avg vol
Lower Middle Upper 14-day 10-day 30-day 50-day
1 VIVOCOM INTERNAT 0.17 0.15 0.16 0.17 50.30 0.16 0.16 0.17 40,715,200 12,697,930
2 SUMATEC RESOURCE 0.08 0.04 0.07 0.10 56.72 0.09 0.07 0.06 33,396,500 55,260,640
3 XOX BHD 0.11 0.09 0.10 0.11 48.33 0.11 0.10 0.11 32,679,900 5,178,720
4 BUMI ARMADA BHD 0.63 0.59 0.62 0.66 53.98 0.63 0.60 0.62 21,303,000 11,412,810
5 YTL CORP BHD 1.55 1.52 1.55 1.57 51.16 1.54 1.54 1.54 11,625,000 6,845,930
6 JADI IMAGING 0.07 0.05 0.06 0.07 63.37 0.07 0.06 0.06 11,225,000 1,733,010
7 ASIA BIOENERGY T 0.06 0.05 0.06 0.06 56.41 0.06 0.06 0.06 10,196,100 16,239,120
8 ANZO HOLDINGS BH 0.25 0.23 0.25 0.26 56.65 0.25 0.24 0.23 9,197,600 8,485,585
9 KEY ALLIANCE GRO 0.05 0.03 0.04 0.05 61.51 0.04 0.04 0.04 8,826,900 788,740
10 BORNEO OIL BHD 0.17 0.15 0.17 0.19 53.69 0.17 0.16 0.16 8,327,300 37,148,290
11 SANICHI TECHNOLO 0.07 0.06 0.07 0.07 53.52 0.07 0.07 0.07 7,211,800 4,697,935
12 DIGISTAR CORP 0.17 0.16 0.16 0.17 49.19 0.16 0.17 0.17 7,208,900 2,060,770
13 AE MULTI HOLDING 0.15 0.14 0.15 0.15 51.89 0.15 0.15 0.15 6,249,800 479,645
14 AT SYSTEMATIZATI 0.04 0.03 0.03 0.04 53.35 0.03 0.03 0.03 5,348,700 4,198,765
15 RED SENA BHD 0.44 0.43 0.43 0.44 55.89 0.43 0.43 0.43 4,756,700 3,650,515
16 JAG BHD 0.12 0.11 0.11 0.12 55.86 0.11 0.11 0.11 4,631,500 6,566,435
17 PDZ HOLDINGS BHD 0.08 0.05 0.07 0.08 57.57 0.08 0.07 0.06 4,383,100 5,591,580
18 KARAMBUNAI CORP 0.06 0.04 0.05 0.06 59.04 0.05 0.05 0.05 4,100,000 939,600
19 DBE GURNEY RESOU 0.05 0.04 0.04 0.05 56.26 0.04 0.04 0.04 3,898,000 10,764,040
20 YTL POWER INTL 1.46 1.41 1.45 1.50 51.06 1.46 1.44 1.46 3,671,300 2,505,295
21 WESTPORTS HOLDIN 4.30 4.22 4.30 4.37 49.86 4.30 4.31 4.31 3,653,700 2,720,290
22 M3 TECHNOLOGIES 0.06 0.04 0.05 0.06 56.48 0.05 0.05 0.05 3,524,200 2,661,560
23 TEK SENG HOLDING 0.71 0.67 0.70 0.73 45.69 0.70 0.70 0.78 3,223,900 2,698,365
24 G NEPTUNE BHD 0.05 0.04 0.04 0.05 62.13 0.04 0.04 0.04 2,944,900 353,250
25 GADANG HLDGS BHD 1.04 0.96 1.03 1.10 51.63 1.05 1.00 1.03 2,832,100 6,274,170
26 ASTRO MALAYSIA 2.69 2.60 2.68 2.77 50.69 2.67 2.68 2.69 2,810,100 1,641,170
27 VSOLAR GROUP BHD 0.09 0.06 0.08 0.09 64.33 0.08 0.07 0.07 2,775,900 1,194,035
28 PERAK TRANSIT BH 0.17 0.16 0.16 0.17 53.99 0.16 0.16 0.16 2,626,000 1,725,930
29 TANCO HLDGS BHD 0.07 0.05 0.06 0.07 60.30 0.06 0.06 0.06 2,505,900 1,506,130
30 DIVERSIFIED GATE 0.04 0.02 0.03 0.04 61.35 0.03 0.03 0.03 2,422,600 1,545,405
Raw data sourced from Bloomberg
*Note: To qualify in this list above, the first sorting criteria is stock price must have just climbed or stayed ABOVE the middle Bollinger Band, followed by a second
criteria that trading volume for the day must be significantly strong. This is a good watch list for momentum traders looking for short-term BUY ideas, as they
are laggards with good upside potential towards the upper Bollinger band or higher to TAKE PROFIT/SELL. Caveat: Some stocks may continue to stay range
bound and trade sideways, hence traders should refer to their respective charts to spot accumulation (volume growth) or breakout patterns.

Moving Averages: A stocks short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-
term trend is positive if share price stays above the 30-day, and negative if it remains below this average.
14-day RSI: A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-day
SMA should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day SMA is bearish and
imply further near-term downside risk.
Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish
trend, traders should buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie.
Buy when price touches the middle band and sell when price touches the upper band. Momentum traders will buy on price breaks above the upper band,
and sell when price breaks below the lower band. Alternatively, a sharp move that originates at one band tends to go all the way to the other band, a useful
observation when projecting price targets.
Page 1 of 2
TA Securities
A Member of the TA Group
*Note: To qualify in the breakout list below, the first sorting criteria is stock price must close ABOVE the upper Bollinger Band, followed by a second criteria that
trading volume for the day must be significantly higher than the 20-day average volume, which signal a bullish breakout. Caveat: We would caution momentum
traders that a highly overbought 14-day RSI reading (> 80) and share price pullback BELOW the upper Bollinger Band are early warning signals to exit buy
breakout trades.
[UPPER BOLLINGER BREAKOUT]

Top 20 Breakout Stocks (Generally BULLISH, but can be short-term TAKE PROFIT/SELL guide)
1 SKH CONSORTIUM B 0.08 0.05 0.06 0.07 82.41 0.06 0.06 0.06 90,467,200 5,175,535
2 THRIVEN GLOBAL B 0.21 0.16 0.18 0.20 63.23 0.18 0.18 0.19 1,321,800 80,185
3 PERMAJU INDUS 0.19 0.11 0.14 0.17 76.28 0.14 0.14 0.14 5,476,400 351,220
4 FAR EAST HLDGS 8.50 7.62 7.99 8.35 63.54 8.05 7.92 7.86 14,000 1,070
5 GPA HOLDINGS BHD 0.11 0.08 0.09 0.10 77.71 0.09 0.09 0.09 5,027,000 420,485
6 CENTRAL IND BHD 1.10 0.92 0.99 1.05 71.68 1.00 0.95 0.86 117,200 9,920
7 KEY ALLIANCE GRO 0.05 0.03 0.04 0.05 61.51 0.04 0.04 0.04 8,826,900 788,740
8 MARCO HOLDINGS B 0.17 0.14 0.15 0.16 63.28 0.15 0.15 0.15 16,221,200 1,549,235
9 ADV SYNERGY BHD 0.12 0.10 0.11 0.11 65.33 0.11 0.11 0.11 2,621,700 257,555
10 CIMB FTSE ASEAN 1.84 1.64 1.74 1.84 66.27 1.76 1.73 1.70 7,000 785
11 SANBUMI HOLDINGS 0.14 0.11 0.12 0.14 69.76 0.13 0.12 0.12 3,583,100 405,245
12 G NEPTUNE BHD 0.05 0.04 0.04 0.05 62.13 0.04 0.04 0.04 2,944,900 353,250
13 JASA KITA BHD 0.17 0.15 0.15 0.16 70.71 0.15 0.15 0.15 1,185,500 145,055
14 FAJAR BARU 0.58 0.54 0.56 0.58 63.37 0.56 0.56 0.56 1,474,800 192,305
15 PROGRESSIVE IMPA 0.17 0.13 0.14 0.16 78.88 0.15 0.14 0.14 3,388,600 450,265
16 YINSON HLDGS BHD 3.00 2.83 2.90 2.98 61.91 2.92 2.90 2.92 4,006,400 548,585
17 PLASTRADE TECHNO 0.16 0.13 0.14 0.15 61.90 0.15 0.14 0.14 1,274,000 175,765
18 ASIA POLY HOLDIN 0.18 0.14 0.15 0.17 68.22 0.15 0.15 0.16 11,193,100 1,573,660
19 GOLDEN PHAROS 0.32 0.24 0.27 0.30 65.95 0.28 0.27 0.29 411,900 59,025
20 BIOALPHA HOLDING 0.23 0.20 0.21 0.22 63.21 0.21 0.21 0.22 62,137,100 9,312,600
p
*Note: As for the top 20 breakdown list below, the sole sorting criteria is stock price must close significantly BELOW the lower Bollinger Band, with the largest
distance from the lower band at the top of the table, signaling a severe sell-off which is bearish. Caveat: A stock should bottom out if share price moves ABOVE the
falling lower Bollinger Band, which can be a good buy signal for technical rebound upside after the sharp sell-off.
p
[LOWER BOLLINGER BREAKDOWN]

Top 20 Breakdown Stocks (Generally BEARISH, but can be short-term BUY guide)
1 TASEK CORP BHD 12.60 12.65 12.76 12.87 26.50 12.72 12.92 13.28 1,000 7,315
2 ASIA KNIGHT BHD 0.07 0.09 0.12 0.16 28.17 0.12 0.13 0.17 3,000 375
3 COMPUTER FORMS 1.06 1.07 1.12 1.17 21.91 1.10 1.13 1.19 3,000 150
4 NESTLE (MALAY) 75.82 75.83 77.60 79.38 33.83 77.08 77.13 77.46 22,800 34,160
5 YEN GLOBAL BHD 1.02 1.02 1.12 1.21 38.63 1.11 1.10 1.13 20,200 42,335
6 SPRITZER BHD 2.33 2.33 2.43 2.52 34.60 2.39 2.41 2.37 73,000 129,465
7 IREKA CORP BHD 0.66 0.66 0.68 0.70 43.18 0.67 0.68 0.66 75,000 11,925
8 PADINI HLDGS 2.50 2.50 2.56 2.62 35.56 2.54 2.57 2.67 903,400 724,840
9 MNC WIRELESS BHD 0.07 0.07 0.07 0.08 37.59 0.07 0.07 0.07 14,082,500 13,546,660
10 CENTURY BOND BHD 1.75 1.75 1.75 1.75 51.08 1.75 1.75 1.75 170,400 58,110
11 TMC LIFE SCIENCE 0.94 0.94 0.95 0.96 40.87 0.95 0.95 0.96 166,700 307,035
12 SERN KOU RESOURC 1.02 1.02 1.07 1.11 35.84 1.05 1.07 1.10 65,000 36,245
13 WZ SATU BHD 1.04 1.04 1.08 1.11 40.50 1.07 1.07 1.08 541,300 242,525
14 ACCSOFT TECHNOLO 0.29 0.29 0.30 0.31 47.82 0.29 0.30 0.29 4,399,900 3,522,880
15 PAC & ORIENT BHD 1.27 1.27 1.29 1.31 30.83 1.28 1.29 1.30 140,400 61,925
16 TIGER SYNERGY BH 0.04 0.04 0.04 0.05 46.28 0.04 0.04 0.04 1,342,400 1,601,370
17 PWORTH 0.11 0.11 0.11 0.12 44.29 0.11 0.11 0.11 4,079,200 1,781,620
18 HOVID BHD 0.30 0.30 0.34 0.37 33.27 0.33 0.34 0.35 9,424,800 9,600,925
19 PALETTE MULTIMED 0.06 0.06 0.06 0.07 45.81 0.06 0.06 0.06 563,500 844,155
20 PANPAGES BHD 0.28 0.28 0.29 0.30 41.89 0.29 0.29 0.30 30,000 20,800
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to
change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect
loss arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
Page 2 of 2
TA RESEARCHS DAILY COMPILED FOREIGN TECHNICAL REPORTS
Asian Technical Reports
a. Foreign Technical Stock Watch (AUS)
b. Foreign Technical Stock Watch (HK)
c. Foreign Technical Stock Watch (FSSTI)
Disclaimer
without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss arising
from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
Foreign Technical Stock Watch

Australia ASX: 5,766.86 (-4.63, -0.08%)
Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD
Change High Low
ASX 200 5766.86 -4.63 5801.20 5758.80 5493.79 5668.73 5843.66 67.06 5744.99 5606.37 5497.71 35.69 8.91 39.15 26.78 78.55 75.51 3.039 BUY BUY - -
-
BHP BILLITON 26.36 0.34 26.49 26.28 24.60 25.43 26.26 62.32 25.60 25.46 24.94 34.77 21.32 10.90 13.45 0.24 0.19 0.046 BUY BUY - -
RIO TINTO 62.87 0.59 63.34 62.50 58.39 60.33 62.28 62.96 60.71 60.28 59.06 32.92 20.78 11.49 12.15 0.64 0.54 0.097 BUY BUY - BUY
COMMONW BK AUSTR 85.03 0.03 85.59 84.70 79.97 82.91 85.84 71.56 84.06 81.63 79.01 35.57 8.81 38.35 26.76 1.65 1.62 0.029 BUY BUY - -
WESTPAC BANKING 33.43 -0.03 33.68 33.28 31.77 32.87 33.96 63.13 33.31 32.43 31.78 30.32 12.65 31.12 17.67 0.53 0.51 0.020 BUY BUY - -
AUST AND NZ BANK 31.24 31.35 31.05 29.48 30.68 31.88 64.98 31.17 30.06 29.10 30.08 13.37 37.16 16.71 0.65 0.67 (0.023) BUY SELL - SELL
NATL AUST BANK 31.52 0.11 31.66 31.34 29.46 30.81 32.15 66.43 31.36 30.25 29.26 31.60 9.01 46.57 22.59 0.67 0.67 0.001 BUY BUY - -
WESFARMERS 41.70 -0.47 42.28 41.52 41.21 42.09 42.97 46.55 42.31 41.71 41.47 16.93 19.34 14.29 (2.42) 0.16 0.21 (0.050) SELL SELL SELL -
WOODSIDE PETRO 32.01 0.31 32.17 31.91 30.80 31.47 32.14 60.90 31.61 31.16 30.37 25.63 17.68 11.76 7.94 0.37 0.39 (0.011) BUY SELL - -
NEWCREST MINING 21.06 -0.03 21.23 21.06 16.21 19.15 22.10 65.14 20.51 19.10 20.24 37.22 20.02 25.96 17.19 0.42 0.08 0.341 BUY BUY - -
WESTFIELD GROUP 9.30 -0.15 9.51 9.29 8.86 9.25 9.63 53.74 9.41 9.14 9.00 28.27 22.27 23.30 6.01 0.12 0.11 0.008 BUY BUY - -
FORTESCUE METALS 6.30 0.07 6.32 6.21 5.71 6.07 6.42 56.88 6.04 6.18 6.04 30.40 25.31 12.13 5.09 0.01 -0.01 0.012 BUY BUY - BUY
QBE INSURANCE 12.47 0.06 12.55 12.39 12.17 12.51 12.85 54.91 12.56 12.28 11.60 26.05 17.04 34.60 9.01 0.24 0.32 (0.082) BUY SELL - -
ORIGIN ENERGY 6.93 0.00 7.00 6.90 6.28 6.61 6.95 71.28 6.73 6.55 6.16 36.90 16.08 27.83 20.82 0.18 0.16 0.011 BUY BUY - -
AMP 5.22 -0.01 5.27 5.19 4.81 5.09 5.36 65.13 5.20 4.96 4.83 34.44 14.13 42.97 20.31 0.11 0.10 0.010 BUY BUY - -
SANTOS 4.23 0.05 4.24 4.20 3.77 4.09 4.41 57.30 4.12 4.16 4.02 30.96 23.74 13.91 7.22 0.03 0.01 0.014 BUY BUY - -
MACQUARIE GROUP 86.36 -0.39 86.77 86.10 86.10 87.41 88.72 49.42 87.64 86.26 84.19 19.74 21.33 14.67 (1.59) 0.78 1.07 (0.285) SELL SELL SELL -
SUNCORP GROUP 13.83 0.09 13.95 13.78 13.23 13.58 13.94 64.90 13.72 13.36 12.83 30.99 14.80 29.48 16.18 0.25 0.27 (0.025) BUY SELL - -
ORICA 18.28 0.20 18.33 18.08 16.66 17.63 18.61 64.87 18.02 17.47 17.30 23.65 11.53 23.44 12.13 0.28 0.25 0.034 BUY BUY - -
OIL SEARCH 7.39 -0.01 7.46 7.34 6.71 7.13 7.55 62.31 7.31 7.05 6.93 30.34 18.45 14.66 11.89 0.13 0.10 0.029 BUY BUY - -
COCA-COLA AMATIL 9.97 -0.11 10.06 9.90 9.57 9.99 10.41 52.16 10.15 9.82 9.68 25.51 22.96 31.25 2.55 0.14 0.15 (0.013) BUY SELL - SELL
AMCOR 15.06 0.06 15.18 15.00 14.46 14.94 15.42 56.21 15.08 14.74 14.59 24.04 13.64 29.42 10.40 0.14 0.15 (0.007) BUY SELL - -
STOCKLAND 4.45 -0.09 4.58 4.43 4.37 4.53 4.68 46.81 4.55 4.46 4.37 21.05 23.12 18.30 (2.07) 0.04 0.06 (0.015) SELL SELL SELL -
ALUMINA 1.82 0.01 1.85 1.79 1.74 1.79 1.85 58.90 1.81 1.77 1.72 28.12 15.65 23.21 12.47 0.03 0.03 (0.006) BUY SELL - -
COMPUTERSHARE 12.55 0.15 12.58 12.38 12.16 12.40 12.63 62.95 12.48 12.22 11.79 19.17 12.91 32.65 6.26 0.19 0.23 (0.039) BUY SELL - -
QANTAS AIRWAYS 3.51 0.11 3.57 3.39 3.27 3.36 3.45 67.77 3.37 3.33 3.23 32.22 11.79 17.40 20.43 0.04 0.04 0.003 BUY BUY - BUY
SIMS METAL MGMT 12.98 -0.02 13.18 12.85 12.54 13.00 13.45 54.17 12.88 12.97 12.48 29.81 21.87 24.64 7.94 0.09 0.16 (0.073) BUY SELL - -
The table below consists of the top 30 ASX 200 Index component stocks, weighted by market capitalization in descending order,
with some popular technical indicators. Some other popularly traded stocks are included at the bottom section.
The technical BUY/SELL signals on the last four columns are auto generated; the first two being existing or recent signals
while the last two represent a signal change from BUY to SELL or the reverse, otherwise no change is indicated by a dash.
Stock names and technical statistics in bold highlight stocks that have changes in BUY/SELL signals on the DMI and MACD on
the given date.
Page 1 of 2
TA Securities

Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy
when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and sell
when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band.
14-day Relative Strength Index (RSI): A reading below 30 is considered oversold, above 70 is overbought. A rise above 50 with a corresponding share price surge above the 30-
day moving average should be taken as a bullish move with good short-term upside potential. A fall below 50 and a simultaneous dip below the 30-day average is bearish and
Moving Averages: A stocks short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if
share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed
broken if it breaches below this level.
Directional Movement Indicator (DMI): The DMI is an indicator of trend strength. A positive DMI difference (DMI diff) value is bullish and indicate a higher DI+ vs. DI-, while a
negative DMI diff is bearish due to a lower DI+ vs. DI- (DMI diff = DI+ minus DI-). A crossover of DI+ above DI- triggers a BUY signal, while a SELL signal is flashed when the DI+
crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the
trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend.
Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA) and
the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD diff
rises above zero, and SELL signal sparked when the MACD diff value falls below zero.
Fundamentals of Foreign Technical Picks

EPS ($) PER(x) Div Yield(%) 52week Price % Chg
Bloomberg Ticker Stock Name Close Target Price % upside
2017 2018 2017 2018 2017 2018 High Low YTD
BHP AU BHP BILLITON LTD 26.36 26.51 1% 1.12 1.10 17.6 17.9 2.477 2.367 26.70 14.06 5.19
RIO AU RIO TINTO LTD 62.87 65.35 4% 2.49 3.33 18.9 14.2 2.001 3.009 63.44 36.53 4.96
CBA AU COMMONW BK AUSTR 85.03 79.38 -7% 5.57 5.71 15.3 14.9 4.964 5.012 85.65 69.22 3.18
WBC AU WESTPAC BANKING 33.43 32.79 -2% 2.39 2.47 14.0 13.6 5.501 5.498 34.08 27.57 2.55
ANZ AU AUST AND NZ BANK 31.24 29.66 -5% 2.32 2.43 13.5 12.9 5.131 5.205 31.84 21.86 2.70
NAB AU NATL AUST BANK 31.52 30.64 -3% 2.39 2.44 13.2 12.9 5.917 5.911 32.10 23.82 2.77
WES AU WESFARMERS LTD 41.70 42.39 2% 2.45 2.60 17.0 16.1 4.983 5.264 46.06 38.62 -1.04
WPL AU WOODSIDE PETRO 32.01 31.21 -3% 1.01 1.21 23.8 19.8 2.643 3.055 32.17 23.82 2.73
NCM AU NEWCREST MINING 21.06 21.75 3% 0.74 0.92 21.3 17.1 0.712 1.068 27.20 12.55 4.00
WFD AU WESTFIELD GROUP 9.30 9.72 4% 0.34 0.34 20.7 20.3 2.677 2.688 11.14 8.21 -0.85
FMG AU FORTESCUE METALS 6.30 5.68 -11% 0.63 0.36 7.5 13.1 3.556 2.302 6.96 1.44 6.96
QBE AU QBE INSURANCE 12.47 12.85 3% 0.54 0.67 17.3 14.0 3.160 3.488 12.85 9.22 0.40
ORG AU ORIGIN ENERGY 6.93 6.51 -6% 0.30 0.52 23.2 13.3 0.014 2.078 7.00 3.44 5.16
AMP AU AMP LTD 5.22 5.03 -4% 0.24 0.35 22.2 14.9 5.326 5.556 5.96 4.39 3.57
STO AU SANTOS LTD 4.23 4.55 7% 0.01 0.15 352.2 21.0 0.024 0.733 5.07 2.46 5.22
MQG AU MACQUARIE GROUP 86.36 85.80 -1% 6.15 6.37 14.1 13.6 4.942 5.178 89.49 58.26 -0.87
SUN AU SUNCORP GROUP LT 13.83 13.95 1% 0.96 0.99 14.4 14.0 5.531 5.719 13.95 10.11 2.29
ORI AU ORICA LTD 18.28 15.55 -18% 1.04 1.13 17.6 16.2 2.921 3.189 18.33 12.04 3.39
OSH AU OIL SEARCH LTD 7.39 7.64 3% 0.08 0.20 68.4 28.1 0.487 1.096 7.75 5.56 3.07
CCL AU COCA-COLA AMATIL 9.97 9.67 -3% 0.54 0.56 18.4 17.8 4.564 4.694 10.35 7.91 -1.48
AMC AU AMCOR LTD 15.06 16.31 8% 0.61 0.66 18.6 17.1 2.869 3.127 16.66 12.06 0.74
SGP AU STOCKLAND 4.45 4.61 4% 0.31 0.32 14.4 13.7 5.775 6.000 5.11 3.94 -2.84
AWC AU ALUMINA LTD 1.82 1.71 -6% 0.03 0.08 41.2 17.2 3.802 4.408 1.88 0.97 -0.82
CPU AU COMPUTERSHARE LT 12.55 11.55 -9% 0.55 0.61 17.0 15.5 2.135 2.279 12.70 8.63 0.72
QAN AU QANTAS AIRWAYS 3.51 3.92 10% 0.54 0.53 6.56 6.60 5.185 6.211 4.22 2.58 5.41
SGM AU SIMS METAL MGMT 12.98 11.58 -12% 0.53 0.64 24.5 20.3 2.319 2.681 13.62 5.96 1.17
Note : The above data is based on Bloomberg consensus.
Disclaimer
opinions are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We
accept no liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an
interest in the securities and/or companies mentioned herein.
Page 2 of 2

Hong Kong HSI: 22,829.02 (-106.33, -0.46%)
Stock Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD
Change High Low
HANG SENG 22,829.02 (106.33) 22,971.49 22,751.67 21,357.40 22,171.23 22,985.06 62.55 22,410.39 22,347.73 22,450.41 36.87 20.85 22.23 16.02 73.38 -61.58 134.965 BUY BUY - -
HSBC 63.95 0.10 64.00 63.60 61.74 63.28 64.82 58.67 63.32 63.18 61.96 29.26 20.82 14.21 8.44 0.42 0.42 (0.001) BUY SELL - -
CH MOBILE 84.85 (0.15) 85.75 84.60 79.60 82.40 85.20 59.55 83.42 82.94 84.05 28.42 17.67 23.50 10.75 0.10 -0.45 0.552 BUY BUY - -
CCONB 5.91 (0.03) 5.95 5.87 5.40 5.74 6.08 58.65 5.88 5.77 5.71 25.75 16.78 20.87 8.97 0.06 0.04 0.019 BUY BUY - -
ICBC 4.77 0.01 4.79 4.74 4.46 4.64 4.82 59.78 4.69 4.69 4.66 21.93 16.65 15.43 5.28 0.02 0.00 0.020 BUY BUY - -
CNOOC 9.73 (0.11) 9.95 9.70 9.45 9.88 10.31 44.13 9.80 9.98 9.92 21.93 21.57 11.00 0.36 -0.06 -0.06 (0.003) BUY SELL BUY SELL
CH LIFE 21.35 (0.20) 21.65 21.20 19.60 20.69 21.78 56.03 20.89 21.16 20.77 29.79 16.54 17.85 13.25 0.06 -0.05 0.113 BUY BUY - -
BOC 3.52 (0.01) 3.54 3.50 3.34 3.45 3.57 56.92 3.49 3.49 3.47 21.23 16.28 14.11 4.95 0.01 0.00 0.012 BUY BUY - -
SHK PROP 106.40 0.70 107.40 105.70 95.01 100.78 106.56 69.03 102.38 101.23 102.74 39.04 15.34 28.46 23.69 0.67 -0.40 1.062 BUY BUY - -
PETRO CH 6.12 (0.05) 6.22 6.11 5.64 5.93 6.21 66.01 5.98 5.77 5.57 33.41 10.08 33.96 23.34 0.15 0.14 0.019 BUY BUY - -
TENCENT 198.80 (2.00) 201.00 196.60 175.87 188.46 201.05 64.35 193.73 189.19 192.94 33.92 19.80 24.71 14.12 1.76 -0.35 2.118 BUY BUY - -
HKSE 186.60 (1.70) 188.30 185.20 178.58 184.49 190.39 45.16 184.97 188.97 194.78 19.34 28.26 39.68 (8.93) -2.30 -3.54 1.244 SELL BUY - -
CK HUTCHISON 91.60 (0.65) 92.40 91.30 86.98 89.76 92.53 53.31 90.24 90.99 92.61 22.15 18.01 27.58 4.14 -0.42 -0.95 0.533 BUY BUY - -
PING AN 40.05 (0.15) 40.50 39.85 37.71 39.72 41.72 49.20 39.53 40.52 40.84 24.33 19.82 15.66 4.51 -0.34 -0.50 0.163 BUY BUY - -
SINOPEC CORP 5.88 0.01 5.95 5.84 5.38 5.67 5.95 64.67 5.71 5.62 5.56 31.94 15.10 18.83 16.84 0.08 0.05 0.035 BUY BUY - -
CH SHENHUA 15.74 (0.06) 15.92 15.60 14.06 15.08 16.10 56.25 15.26 15.38 15.87 25.12 20.63 19.98 4.49 -0.03 -0.19 0.162 BUY BUY - -
CLP 74.85 (0.65) 75.40 74.40 70.42 72.96 75.51 57.98 73.46 73.51 74.56 30.29 13.43 21.06 16.87 0.09 -0.41 0.496 BUY BUY - -
LI & FUNG 3.53 (0.04) 3.61 3.52 3.38 3.56 3.74 49.60 3.53 3.51 3.52 23.62 17.09 19.17 6.53 0.00 0.00 0.002 BUY BUY - -
BOC HK 28.70 (0.45) 29.15 28.70 27.09 28.17 29.26 54.58 28.44 28.46 28.23 26.57 20.55 14.96 6.02 0.16 0.05 0.107 BUY BUY - -
HS BANK 149.20 (0.30) 149.80 148.60 142.66 146.47 150.27 61.81 147.26 146.65 145.32 21.61 12.57 17.02 9.04 0.95 0.58 0.375 BUY BUY - -
HK&CH GAS 14.40 (0.08) 14.50 14.32 13.34 13.88 14.42 64.50 13.99 14.00 14.30 33.96 14.51 27.21 19.45 0.01 -0.10 0.118 BUY BUY - -
SWIRE 78.25 0.15 78.35 77.75 71.42 75.08 78.74 66.36 76.38 75.64 76.88 25.63 13.68 32.19 11.96 0.29 -0.35 0.642 BUY BUY - -
HL PROP 18.00 0.20 18.10 17.70 15.73 16.86 17.99 68.97 17.11 17.03 16.98 36.32 15.63 22.49 20.69 0.16 -0.02 0.174 BUY BUY - -
WHARF 57.30 (0.65) 58.45 57.30 48.63 53.61 58.60 64.08 55.16 54.36 55.01 35.07 17.24 26.96 17.83 0.69 -0.07 0.752 BUY BUY - -
CH OV LAND 22.65 0.25 22.85 22.40 19.73 21.10 22.47 67.50 21.34 21.50 22.08 32.17 14.47 32.82 17.70 -0.01 -0.32 0.304 BUY BUY - -
POWER ASSETS 70.05 (1.05) 71.15 70.00 67.03 69.28 71.52 49.31 69.37 70.36 71.45 25.14 19.15 20.74 5.98 -0.38 -0.75 0.378 BUY BUY - -
BELLE 4.72 (0.04) 4.85 4.65 4.15 4.43 4.70 62.87 4.50 4.46 4.47 33.33 9.77 28.91 23.56 0.03 -0.02 0.053 BUY BUY - -
HENDERSON 42.90 (0.15) 43.45 42.80 39.96 41.52 43.07 61.78 41.97 41.86 42.41 27.57 12.78 28.81 14.79 0.06 -0.25 0.308 BUY BUY - -
BOCOMM 5.74 (0.01) 5.80 5.71 5.40 5.64 5.89 51.64 5.68 5.74 5.82 20.10 18.76 16.85 1.34 -0.03 -0.06 0.029 BUY BUY - -
CH COAL 3.80 (0.11) 3.93 3.79 3.53 3.74 3.95 48.58 3.78 3.79 3.98 21.44 17.32 22.94 4.12 -0.03 -0.07 0.036 BUY BUY - -
CH UNICOM 8.83 (0.10) 8.97 8.78 8.76 9.11 9.45 40.26 9.08 9.21 9.08 16.41 24.67 13.14 (8.27) -0.04 -0.02 (0.022) SELL SELL - -
BK EASIA 31.65 (0.35) 31.95 31.35 29.26 30.75 32.23 56.01 30.95 31.28 31.37 24.66 19.24 17.21 5.42 0.01 -0.21 0.219 BUY BUY - -
ESPRIT 6.15 (0.05) 6.23 6.08 6.02 6.22 6.42 44.72 6.15 6.28 6.30 13.47 14.97 14.75 (1.50) -0.06 -0.06 0.004 SELL BUY - -
MTR 38.40 (0.40) 38.75 38.35 37.03 38.05 39.07 49.02 38.30 38.18 39.22 21.31 22.64 25.87 (1.33) -0.13 -0.33 0.198 SELL BUY SELL -
SINO LAND 12.82 0.02 12.92 12.74 10.97 11.83 12.68 73.69 12.10 11.86 11.82 38.57 8.96 28.85 29.61 0.18 0.02 0.151 BUY BUY - -
CH RES 15.30 (0.02) 15.56 15.20 14.55 15.29 16.03 44.95 15.36 15.56 15.97 13.73 24.31 27.47 (10.58) -0.17 -0.25 0.076 SELL BUY - -
NEW WORLD 8.98 0.04 9.10 8.94 7.95 8.42 8.89 70.30 8.53 8.50 8.69 38.72 15.39 30.63 23.33 0.02 -0.08 0.103 BUY BUY - -
CH RES LAND 18.94 0.10 19.20 18.82 16.81 17.85 18.88 65.10 18.06 18.18 18.48 30.85 14.22 25.54 16.64 0.00 -0.21 0.214 BUY BUY - -
CH MERCHANT 20.55 0.20 20.55 20.25 18.46 19.49 20.51 66.68 19.83 19.48 19.55 28.27 15.47 19.56 12.79 0.21 0.04 0.168 BUY BUY - -
CH RES POWER 13.12 0.22 13.14 12.94 11.83 12.36 12.89 67.38 12.50 12.49 12.66 26.68 14.18 34.83 12.49 0.03 -0.09 0.117 BUY BUY - -
ALCORP 3.40 (0.10) 3.48 3.36 3.01 3.25 3.49 56.18 3.28 3.35 3.31 27.40 16.40 22.15 10.99 0.01 -0.02 0.026 BUY BUY - -
CATHAY 10.54 0.00 10.58 10.50 9.99 10.32 10.65 60.18 10.45 10.35 10.39 16.16 11.54 25.28 4.62 0.05 0.01 0.041 BUY BUY - -
CITIC 11.48 0.00 11.60 11.44 10.80 11.25 11.70 54.30 11.28 11.45 11.50 18.91 18.00 23.34 0.91 -0.04 -0.10 0.057 BUY BUY BUY -
COSCO 7.75 (0.01) 7.82 7.73 7.61 7.86 8.11 46.74 7.81 7.84 7.78 17.27 17.99 13.42 (0.72) -0.01 0.00 (0.012) SELL SELL SELL -
FIH MOBILE LTD 2.51 0.02 2.51 2.49 2.39 2.47 2.55 54.35 2.50 2.48 2.48 19.58 14.58 17.47 5.00 0.01 0.00 0.006 BUY BUY - -
GENHK 2.31 0.00 2.31 2.31 2.20 2.28 2.36 55.37 2.31 2.27 2.26 38.52 19.79 33.74 18.72 0.02 0.02 0.004 BUY BUY - -
AIA 46.25 (0.20) 46.65 46.15 42.60 44.42 46.23 60.84 44.79 44.75 45.89 30.77 17.08 26.46 13.69 -0.02 -0.48 0.455 BUY BUY - -
SANDS CHINA 34.75 (0.90) 35.45 34.20 32.12 33.73 35.33 51.86 34.18 34.81 35.25 23.36 25.57 22.53 (2.20) -0.13 -0.43 0.296 SELL BUY SELL -
GALAXY 35.45 (0.80) 36.20 35.15 32.23 34.10 35.96 55.90 34.48 35.04 34.70 28.42 21.31 20.08 7.12 0.17 -0.10 0.269 BUY BUY - -
The table above consists of the 45 HKSE Hang Seng Index component stocks, sorted by market capitalization in descending
order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom section.
the given date.
Page 1 of 3
TA Securities
Corporate News: Asia Pacific life insurance valuation peer group slid 25.4% in December, the first monthly decline since June for the dollar-
based gauge. The decrease was mainly caused by a decline of almost 10% for Chinese life peers, probably on concerns over potential bond
defaults and the 6.4% drop in local stocks index CSI 300. Bloomberg.
Technical Comments: China Life shares would need to sustain strength above the upper Bollinger band to extend higher towards the
50%FR (HKD23.57), with a confirmed breakout to challenge the 61.8%FR (HKD25.36) and 76.4%FR (HKD27.57) ahead, while
immediate support is found at the lower band (HKD19.59).
CHINA LIFE INSURANCE HKD21.35 (-0.20)

\\

Upper HKD 21.78 10-day HKD 20.89
Middle HKD 20.69 30-day HKD 21.16
Lower HKD 19.60 50-day HKD 20.77
DMI DAILY MACD
Page 2 of 3
TA Securities

Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should
buy when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band
and sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band.
Moving Averages: A stocks short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive
if share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed
crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger
the trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend.
Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA)
and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD
diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero.

Target EPS ($) PER(x) Div Yield(%) 52week Price % Chg
Bloomberg Ticker Stock Name Close % upside
Price 2017 2018 2017 2018 2017 2018 High Low YTD
5 HK HSBC 63.95 58.94 -9% 0.6 0.6 14.7 13.2 0.8 0.8 67.25 44.50 2.73
941 HK CH MOBILE 84.85 109.17 22% 5.3 5.8 14.2 13.1 2.7 3.1 99.30 79.00 3.22
939 HK CCONB 5.91 7.21 18% 0.9 0.9 5.8 5.7 4.6 4.6 6.14 4.31 -1.01
1398 HK ICBC 4.77 5.89 19% 0.8 0.8 5.5 5.4 4.8 4.8 5.12 3.72 2.58
883 HK CNOOC 9.73 10.95 11% 0.0 0.6 N/A 14.7 2.4 3.2 10.88 6.41 0.31
2628 HK CH LIFE 21.35 25.35 16% 0.7 0.9 27.0 20.3 1.2 1.5 23.10 16.00 5.69
3988 HK BOC 3.52 4.36 19% 0.6 0.6 5.5 5.5 4.9 4.8 3.77 2.83 2.33
16 HK SHK PROP 106.40 121.79 13% 8.7 9.3 12.2 11.4 3.6 3.8 123.30 79.00 8.57
857 HK PETRO CH 6.12 6.66 8% 0.1 0.3 108.8 20.6 0.6 2.0 6.27 4.16 5.88
700 HK TENCENT 198.80 237.56 16% 4.7 6.1 37.7 28.9 0.3 0.3 220.80 132.10 4.80
388 HK HKSE 186.60 182.49 -2% 5.0 5.7 37.1 32.7 2.4 2.8 213.20 160.10 1.86
1 HK CK HUTCHISON 91.60 113.86 20% 8.2 8.9 11.2 10.2 3.0 3.3 103.90 80.60 4.21
2318 HK PING AN 40.05 53.82 26% 3.4 3.5 10.6 10.3 1.4 1.5 44.15 30.50 3.22
386 HK SINOPEC CORP 5.88 6.57 11% 0.3 0.4 15.9 12.6 2.9 3.6 6.00 3.86 6.91
1088 HK CH SHENHUA 15.74 18.17 13% 1.3 1.4 11.0 9.9 3.1 3.4 17.70 10.12 7.81
2 HK CLP 74.85 78.00 4% 4.8 5.0 15.6 15.0 3.7 3.8 84.35 62.35 5.05
494 HK LI & FUNG 3.53 3.37 -5% 0.0 0.0 12.6 11.7 0.9 0.9 5.15 3.31 3.52
2388 HK BOC HK 28.70 31.21 8% 2.2 2.4 12.8 11.8 6.1 4.3 29.85 18.35 3.42
11 HK HS BANK 149.20 141.33 -6% 8.6 9.1 17.4 16.4 3.9 4.0 150.00 118.42 3.40
3 HK HK&CH GAS 14.40 12.41 -16% 0.6 0.6 23.9 24.0 2.5 2.6 15.50 11.93 4.80
19 HK SWIRE 78.25 75.33 -4% 5.2 5.7 15.1 13.8 4.3 4.4 94.40 70.15 5.67
101 HK HL PROP 18.00 18.16 1% 1.2 1.1 15.2 16.1 4.2 4.2 19.32 13.00 9.49
4 HK WHARF 57.30 57.56 0% 4.1 4.3 13.8 13.4 3.5 3.7 60.30 34.45 11.15
688 HK CH OV LAND 22.65 29.22 22% 3.2 3.6 7.1 6.3 3.4 4.0 27.85 20.15 10.22
6 HK POWER ASSETS 70.05 77.96 10% 3.5 3.5 19.8 19.8 3.9 3.9 81.00 66.10 2.49
1880 HK BELLE 4.72 4.86 3% 0.4 0.4 10.0 10.3 5.5 5.3 5.79 4.07 8.26
12 HK HENDERSON 42.90 45.32 5% 3.2 3.1 13.6 14.1 3.4 3.4 48.20 34.00 4.00
3328 HK BOCOMM 5.74 5.81 1% 0.9 0.9 5.8 5.8 4.5 4.5 6.33 4.24 2.32
1898 HK CH COAL 3.80 4.70 19% 0.1 0.2 28.6 15.5 0.5 1.2 4.88 2.31 3.26
762 HK CH UNICOM 8.83 11.65 24% 0.1 0.3 77.0 28.8 0.9 1.5 10.26 7.70 -2.21
23 HK BK EASIA 31.65 23.39 -35% 1.4 1.9 22.5 16.6 2.4 2.4 34.35 20.95 6.57
330 HK ESPRIT 6.15 6.11 -1% -0.1 0.2 N/A 41.0 0.0 1.1 8.64 5.34 0.99
66 HK MTR 38.40 38.96 1% 1.6 1.6 24.7 23.6 8.5 8.5 44.50 32.24 1.86
83 HK SINO LAND 12.82 13.18 3% 0.9 0.8 15.0 15.2 4.0 4.0 14.48 9.39 10.33
291 HK CH RES 15.30 17.45 12% 0.4 0.6 38.9 23.9 0.6 1.1 18.08 10.76 -0.65
17 HK NEW WORLD 8.98 10.47 14% 0.7 0.8 12.0 11.2 4.9 4.9 10.46 5.87 9.51
1109 HK CH RES LAND 18.94 27.39 31% 2.4 2.8 7.8 6.7 3.5 4.0 23.85 16.50 8.60
144 HK CH MERCHANT 20.55 24.19 15% 1.4 1.6 14.7 13.1 3.4 3.6 24.95 18.80 6.81
836 HK CH RES POWER 13.12 13.64 4% 1.9 1.6 6.8 8.0 6.1 5.8 15.50 10.70 6.49
2600 HK ALCORP 3.40 3.52 4% 0.0 0.1 97.5 25.0 0.0 0.1 3.74 2.16 6.25
293 HK CATHAY 10.54 9.36 -13% 0.2 0.1 54.3 146.4 0.7 0.8 14.06 10.00 3.33
267 HK CITIC 11.48 12.20 6% 1.5 1.5 7.4 7.4 2.7 2.9 12.78 10.02 3.42
1199 HK COSCO 7.75 8.68 11% 0.1 0.1 11.9 12.2 1.1 0.4 9.48 7.11 -0.51
2038 HK FIH MOBILE LTD 2.51 2.60 3% 0.0 0.0 29.4 20.2 0.5 0.3 3.38 2.31 2.45
678 HK GENHK 2.31 2.79 17% -0.4 0.2 N/A 1.2 0.0 0.0 3.10 2.00 2.21
1299 HK AIA 46.25 56.28 18% 0.3 0.4 18.8 16.8 0.2 0.2 54.15 36.85 5.71
1928 HK SANDS CHINA LTD 34.75 38.11 9% 0.2 0.2 26.4 22.0 0.7 0.7 39.30 20.75 3.12
27 HK GALAXY 35.45 39.05 9% 1.4 1.5 26.1 23.7 1.1 1.3 39.20 19.69 4.88
Note : The above data based on Bloomberg consensus.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions
are subject to change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no
liability for any direct or indirect loss arising from the use of this document. We, our associates, directors, employees may have an interest in
the securities and/or companies mentioned herein.
Page 3 of 3


Singapore FSSTI: 2993.00 (-7.94, -0.26%)
Stock Close Bollinger Bands RSI Moving Averages DMI MACD DMI MACD DMI MACD
Change High Low
FSSTI 2,993.00 (7.94) 3,022.22 2,991.41 2,845.06 2,928.72 3,012.38 67.64 2,948.85 2,933.40 2,888.52 36.16 15.64 23.83 20.52 25.37 16.55 8.822 BUY BUY - -
SINGTEL 3.79 0.00 3.82 3.78 3.60 3.70 3.80 62.45 3.72 3.73 3.74 28.42 16.60 15.97 11.81 0.01 -0.01 0.018 BUY BUY - -
DBS 18.12 0.08 18.22 18.12 17.15 17.68 18.20 66.98 17.70 17.76 17.10 35.19 19.94 21.62 15.25 0.20 0.18 0.018 BUY BUY - -
OCBC 9.25 (0.05) 9.39 9.23 8.87 9.11 9.35 59.76 9.15 9.14 8.96 30.32 17.97 18.98 12.35 0.07 0.05 0.017 BUY BUY - -
UOB 20.87 0.00 21.08 20.87 20.21 20.71 21.21 60.74 20.72 20.74 20.12 23.66 21.85 14.81 1.81 0.17 0.18 (0.008) BUY SELL - -
JARDINE M. 58.79 (0.91) 59.88 58.55 52.15 56.46 60.76 61.28 58.25 55.78 55.97 27.86 14.20 30.59 13.66 1.11 0.65 0.462 BUY BUY - -
WILMAR 3.75 0.07 3.76 3.68 3.56 3.66 3.75 62.51 3.65 3.65 3.54 25.91 16.16 16.32 9.75 0.03 0.03 (0.000) BUY SELL - -
HK LAND 6.69 0.02 6.79 6.64 5.89 6.41 6.93 60.27 6.62 6.39 6.39 25.58 11.23 31.67 14.34 0.11 0.06 0.053 BUY BUY - -
CAPLAND 3.13 (0.02) 3.17 3.13 2.94 3.05 3.15 63.55 3.09 3.06 3.05 26.13 10.92 22.03 15.21 0.02 0.01 0.015 BUY BUY - -
GENSP 0.92 (0.02) 0.95 0.92 0.88 0.93 0.97 48.27 0.92 0.94 0.92 23.52 18.43 17.38 5.09 0.00 0.00 0.000 BUY BUY - -
KEPPEL 6.13 0.00 6.20 6.13 5.69 5.95 6.22 68.14 5.96 5.95 5.71 35.86 16.46 22.79 19.40 0.09 0.07 0.013 BUY BUY - -
SGX 7.20 (0.02) 7.25 7.19 7.06 7.21 7.35 48.56 7.18 7.26 7.19 17.12 20.05 19.57 (2.93) -0.01 -0.01 0.003 SELL BUY - -
SIA 9.76 (0.08) 9.89 9.75 9.65 9.75 9.85 48.34 9.76 9.76 9.78 20.21 15.94 18.58 4.27 0.00 -0.02 0.017 BUY BUY - -
FNN 2.11 0.00 2.12 2.11 2.06 2.10 2.14 53.01 2.10 2.10 2.11 20.95 14.54 13.09 6.42 0.00 0.00 0.004 BUY BUY - -
NOBLE 0.18 0.00 0.18 0.17 0.16 0.17 0.18 53.01 0.18 0.17 0.17 21.24 15.10 23.20 6.14 0.00 0.00 0.001 BUY BUY - -
CITY DEV 8.73 0.04 8.78 8.66 7.92 8.32 8.71 68.87 8.47 8.35 8.39 33.64 11.41 26.87 22.23 0.07 0.00 0.066 BUY BUY - -
JARDINE S. 36.04 (0.40) 36.54 35.85 30.73 34.04 37.35 65.74 35.42 33.67 33.67 33.92 11.34 36.14 22.59 0.90 0.56 0.338 BUY BUY - -
SG PRESS 3.65 (0.05) 3.72 3.64 3.50 3.59 3.68 54.68 3.61 3.62 3.64 27.96 13.69 24.62 14.26 0.00 -0.01 0.017 BUY BUY - -
JARDINE C&C 40.69 (0.78) 41.70 40.69 39.35 40.65 41.94 49.04 41.03 40.73 40.65 21.62 22.45 11.83 (0.82) 0.14 0.06 0.085 SELL BUY SELL -
GOLDEN AGRI 0.43 (0.01) 0.43 0.43 0.42 0.43 0.44 50.51 0.43 0.43 0.42 15.25 18.86 15.19 (3.61) 0.00 0.00 (0.001) SELL SELL - -
SG TECH 3.34 (0.02) 3.37 3.32 3.19 3.29 3.40 56.95 3.30 3.32 3.26 21.73 16.57 20.80 5.17 0.01 0.00 0.007 BUY BUY - -
OLAM INT 2.04 (0.01) 2.05 2.03 1.93 2.02 2.11 54.34 2.00 2.03 2.03 20.97 12.32 17.31 8.65 0.00 -0.01 0.005 BUY BUY - -
CAP TRUST 1.98 (0.03) 2.02 1.96 1.84 1.92 2.01 58.45 1.95 1.93 1.94 28.76 20.29 23.72 8.47 0.01 0.00 0.014 BUY BUY - -
SEMBCORP 3.09 0.06 3.11 3.05 2.78 2.94 3.09 71.61 2.97 2.92 2.81 36.70 10.60 29.52 26.10 0.06 0.05 0.012 BUY BUY - -
SEMCORP M. 1.51 0.01 1.53 1.50 1.34 1.44 1.54 62.15 1.46 1.45 1.42 31.95 17.11 18.87 14.83 0.02 0.01 0.010 BUY BUY - -
CMFT DELGRO 2.51 (0.02) 2.54 2.49 2.47 2.54 2.60 46.28 2.51 2.55 2.51 16.31 20.39 14.05 (4.07) 0.00 0.00 (0.001) SELL SELL SELL SELL
STARHUB 2.92 (0.01) 2.95 2.90 2.74 2.83 2.93 55.88 2.86 2.86 2.92 25.49 17.18 18.93 8.30 -0.01 -0.03 0.022 BUY BUY - -
SIA ENG 3.47 0.02 3.49 3.46 3.32 3.38 3.45 63.31 3.40 3.39 3.43 27.09 13.98 26.50 13.12 0.00 -0.02 0.016 BUY BUY - -
IFOOD AGRI 0.54 0.00 0.54 0.54 0.51 0.54 0.57 50.03 0.53 0.55 0.52 26.02 20.60 20.93 5.42 0.00 0.00 (0.002) BUY SELL - -
YZJ 0.83 (0.02) 0.86 0.83 0.80 0.83 0.86 50.83 0.83 0.84 0.82 20.13 14.97 14.01 5.17 0.00 0.00 0.001 BUY BUY - -
The table above consists of the revamped 30 SGX FTSE Straits Times Index component stocks, sorted by market capitalization
in descending order, with some popular technical indicators. Some other popularly traded stocks are included at the bottom
section.
the given date.
Page 1 of 2
Bollinger Bands: Variable width bands that narrow during less volatile periods and widen during more volatile periods. As a general rule, in a bearish trend, traders should buy
when share price touches the lower band and exit when price touches the middle band. The reverse is true in a bullish trend, ie. Buy when price touches the middle band and
sell when price touches the upper band. Momentum traders tend to buy on price breakouts above the upper band, and sell when price breaks down below the lower band.
Moving Averages: A stocks short-term trend is bullish if share price stays above the 10-day moving average, and bearish if it stays below. The medium-term trend is positive if
share price stays above the 30-day average and negative if it remains below. A longer-term uptrend is intact if share price sustain above the 50-day average, and is deemed
crosses below the DI-. The Average Directional Movement Index (ADX) indicates the strength of a trend, whether it is up or down. The higher the value of ADX, the stronger the
trend. An ADX value above 25 suggests a trending market or stock, while a value below 20 signal congestion or absence of trend.
Daily Moving Average Convergence Divergence (MACD): The MACD diff value is derived from the difference between the MACD line (the 12-day EMA minus the 26-day EMA)
and the MACD signal line (the 9-day EMA of the MACD). A positive MACD diff value is bullish, while a negative MACD diff is bearish. A BUY signal is generated when the MACD
diff rises above zero, and SELL signal sparked when the MACD diff value falls below zero.

Target EPS ($) PER(x) Div Yield(%) 52week Price % Chg
Bloomberg Ticker Stock Name Close % upside
Price 2017 2018 2017 2018 2017 2018 High Low YTD
ST SP SINGTEL 3.79 4.31 12% 0.2 0.3 15.5 14.6 4.7 4.9 4.36 3.38 3.84
DBS SP DBS 18.12 17.97 -1% 1.693 1.753 10.7 10.3 3.3 3.4 18.40 13.01 4.50
OCBC SP OCBC 9.25 9.12 -1% 0.8 0.9 11.0 10.8 3.9 4.0 9.45 7.41 3.70
UOB SP UOB 20.87 19.79 -5% 1.8 1.9 11.3 10.9 3.5 3.6 21.35 16.80 2.30
JM SP JARDINE M. 58.79 59.30 1% 3.9 4.0 14.9 14.6 2.4 2.5 63.71 48.15 6.41
WIL SP WILMAR 3.75 3.51 -7% 0.1 0.2 18.9 13.6 1.4 1.8 3.76 2.61 4.46
HKL SP HK LAND 6.69 6.98 4% 0.4 0.4 17.9 17.0 2.9 2.9 7.35 5.55 5.69
CAPL SP CAPLAND 3.13 3.75 16% 0.2 0.2 17.9 16.1 3.0 3.0 3.28 2.80 3.64
GENS SP GENSP 0.92 0.94 2% 0.0 0.0 43.8 28.8 2.7 2.8 1.04 0.66 1.66
KEP SP KEPPEL 6.13 5.76 -6% 0.5 0.5 12.0 11.7 3.6 3.7 6.34 4.64 5.87
SGX SP SGX 7.20 7.73 7% 0.3 0.4 21.6 19.9 4.1 4.4 8.05 6.61 0.56
SIA SP SIA 9.76 9.82 1% 0.4 0.5 21.9 21.1 3.7 3.1 11.67 9.60 0.93
FNN SP FNN 2.11 2.16 3% 0.1 0.1 29.7 28.5 2.0 2.0 2.23 1.90 0.96
NOBL SP NOBLE 0.18 0.21 18% 0.0 0.0 6.5 5.1 1.7 1.7 0.37 0.11 2.94
CIT SP CITY DEV 8.73 10.23 15% 0.6 0.6 14.0 13.8 1.7 1.7 9.24 6.55 5.43
JS SP JARDINE S. 36.04 33.10 -9% 2.5 2.7 14.2 13.5 0.8 0.9 37.69 25.70 8.55
SPH SP SG PRESS 3.65 3.33 -10% 0.2 0.2 23.2 23.7 4.8 4.6 4.13 3.47 3.40
JCNC SP JARDINE C&C 40.69 53.50 24% 1.8 2.1 16.1 13.6 1.7 1.9 45.20 31.60 -1.31
GGR SP GOLDEN AGRI 0.43 0.39 -9% 0.0 0.0 19.9 16.6 1.6 1.9 0.45 0.33 -1.16
STE SP SG TECH 3.34 3.41 2% 0.2 0.2 21.8 19.4 4.3 4.5 3.45 2.63 3.41
OLAM SP OLAM INT 2.04 1.74 -17% 0.1 0.1 15.7 14.9 1.9 1.9 2.17 1.56 3.55
CT SP CAP TRUST 1.98 2.19 9% 0.1 0.1 17.1 17.2 5.6 5.6 2.25 1.87 5.04
SCI SP SEMBCORP 3.09 2.98 -4% 0.2 0.3 13.6 12.1 2.8 2.9 3.28 2.16 8.42
SMM SP SEMCORP M. 1.51 1.23 -23% 0.1 0.1 30.2 24.4 1.8 1.8 1.90 1.22 9.42
CD SP CMFT DELGRO 2.51 3.12 20% 0.2 0.2 16.6 15.7 3.9 4.5 3.05 2.39 1.62
STH SP STARHUB 2.92 3.00 3% 0.2 0.2 14.2 15.0 6.8 6.7 3.97 2.73 3.91
SIE SP SIA ENG 3.47 3.53 2% 0.1 0.2 23.8 22.8 4.3 4.1 3.91 3.31 2.97
IFAR SP IFOOD AGRI 0.54 0.53 0% 253 426 19.7 11.7 6684 10162 0.63 0.41 1.90
YZJSGD SP YZJ 0.83 0.91 9% 0.5 0.5 8.4 8.7 21.7 22.2 1.04 0.71 1.84
Note : The above data based on Bloomberg consensus.
Disclaimer
The information in this report has been obtained from sources believed to be reliable. Its accuracy or completeness is not guaranteed and opinions are subject to
change without notice. This report is for information only and not to be construed as a solicitation for contracts. We accept no liability for any direct or indirect loss
arising from the use of this document. We, our associates, directors, employees may have an interest in the securities and/or companies mentioned herein.
Page 2 of 2

Daily Market Commentary and Technical Stock Picks

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TA RESEARCHS DAILY COMPILED REPORTS

a. Daily Market Commentary

a. (IPO) KIP Real Estate Investment Trust: Community-Centric Retail Centres

d. Daily Technical Stock Picks

KLSE Market Statistics (12.01.2017) Review & Outlook

THIS REPORT IS STRICTLY FOR INTERNAL CIRCULATION ONLY*

Market View Profit-Taking from Disappointed Investors Likely

Stronger Resistance Near 1,700, Support at 1,660

Buy on Weakness Bumi Armada & SapuraKencana

Asian Markets Retreat on Disappointment Over Trump Speech

Financial Sector Drag Wall Street Lower Ahead of Earnings

Prestariang Bhd has signed a Memorandum of Understanding with Alibabas subsidiary

China-based Maxwell International Holdings Bhd, a Practice Note 17 company, has

Japan November Current Account Surplus Y1.415 Trillion

U.S. U.S. Jobless Claims Rise Modestly to Start Year

U.S. Import Prices Rebound Less Than Expected in December

Eurozone ECB Stimulus Extension Followed Disagreement on Best Path for QE

Eurozone Economy Registering Surprisingly Strong Growth Spurt

German GDP Grows at Fastest Rate in Five Years

Share Buy-Back: 12 Jan 2017

BANKS & FINANCIAL SERVICES

OIL & GAS

POWER & UTILITIES

SNAPSHOT OF FOREIGN STOCKS UNDER COVERAGE

KIP Real Estate Investment Trust Fair Value: RM 1.09

Background Share Information

Earnings Summary (RM mn) TOTAL 234.2 100.0

FYE June 2014# 2015# 2016# 2017f 2018f 2019f

Figure 1: Trust Structure

Source: Prospectus, TA Securities

Figure 2: IPO Structure

Source: Prospectus, TA Securities

Source: Prospectus, TA Securities

KiP Mart is an established name in Johor. It is known as a one-stop community-

Figure 4: Portfolio Details

163,669 72,232 143,204 115,640 182,345 261,710

234,321 113,958 247,990 175,095 276,987 348,203

Figure 5: Assets Location

Source: Company, TA Securities

Source: Prospectus, TA Securities Source: Prospectus, TA Securities

Source: Prospectus, TA Securities Source: Prospectus, TA Securities

Diversified portfolio in terms of geographical location and tenant base

Attractive organic and inorganic growth prospects

Inorganic growth. We are also optimistic of KIP REITs prospects in terms of

Solid Financial Position with low gearing level

Figure 10: Gearing Level Comparison

Source: Company, Bloomberg, TA Securities

Major tenancies renewal to take place in FY17

Source: Prospectus, TA Securities Source: Prospectus, TA Securities

Rising retail supply in Johor

Financial Highlights and Earnings Forecasts

We estimate FY17 & 18 earnings growth to be relatively flattish, as the loss of

Figure 13: Financial Highlights

Source: Company, TA Securities

Malaysian REITs Sector Comparison

Stock Recommendation Guideline

Disposing stake in WOM Finance Share Information

Key upside/downside risks to our fair value include: 1) solid improvement in

Financial Summary (RMmn)

Stock Recommendation Guideline

Pantech Group Holdings Berhad TP: RM0.52 (+11.8%)