Co.

Reg No: 198700034E MICA (P) : 090/11/2009

Singapore
Sector Update
8 December 2011

Property Sector
Brace for impact
OOI Yi Tung ooiyitung@kimeng.com (65) 6433 5712 New round of tightening. The government rolled out a fifth round of property cooling measures to keep a lid on investment demand from locals and foreigners. Effective today, an Additional Buyers Stamp Duty (ABSD) will be imposed over and above the current Buyers Stamp Duty (approximately 3%) on selected transactions. Foreigners and non-individuals will pay a 10% ABSD on all residential property purchases, permanent residents will pay a 3% ABSD on second and subsequent residential property purchases, and Singapore citizens will pay an ABSD of 3% on third and subsequent residential property purchases. Moderated land supply. The government also released details on the Government Land Sales (GLS) programme for 1H12. Fourteen sites are placed on the Confirmed List, and these are expected to yield 7,020 residential units, down from 8,115 residential units in 2H11. Of note is the supply in the Executive Condominium (EC) segment, which will be ramped up to 2,900 units, compared with 1,115 units in 2H11. The supply of private residential units, however, has been cut to 4,120 units, from 7,000 units in 2H11. Double whammy for mass market. Against the new backdrop, we expect mass market projects to see prices slip by at least 10-20% going into 2012. The full impact of the ramped-up supply under the GLS programme will be felt only next year. This is when a minimum of 16,000 residential units from the record-high land sales this year will be launched for sale. We also note that all 14 sites in the GLS 1H12 are found in the mass market districts, with 10 located next to existing launches. These sites are likely to attract lower bids because of the stiff competition to be expected in a segment where margins are already slim. Recent tender prices have implied pre-tax margins in the region of 15% and price cuts to drive sales is a probable strategy if the property market turns frosty. The latest round of cooling measures is also a demand dampener for this segment, even though the impact is unlikely to be very significant as up to 80% of the buyers are generally locals. That said, we observe that some projects such as euHabitat in Eunos, which offers a mix of housing types, has attracted higher foreigner interest. High-end segment to take longer to recover. About 40-80% of the units in the high-end segment are sold to foreigners. This means the 10% ABSD is applicable to a majority of transactions in this market. But we hold the view that developers will not cut prices, given the rising replacement cost of their inventories. The already sluggish sales in this foreigner-led segment will be further stifled and a pickup in the near term has been nipped in the bud by the rollout of the ABSD. However, we note that developers margins in the luxury segment are higher due to the low cost of land from the last en bloc cycle and inventories are largely freehold. In any case, a slowdown in sales has been anticipated.
Kim Eng Research is a subsidiary of Malayan Banking Berhad

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Property Sector

Table 1: Confirmed List for Government Land Sales programme in 1H12

Location Upper Serangoon View / Upper Serangoon Road (EC) Hillview Avenue Fernvale Lane (EC) Elias Road / Pasir Ris Drive 3 Punggol Central / Edgefield Plains (EC) Woodlands Avenue 5 / Woodlands Drive 16 (EC) Tampines Avenue 9 / Tampines Avenue 7 (EC) Tampines Avenue 10 / Tampines Avenue 1 (Parcel A) Buangkok Drive / Sengkang Central Sengkang Square / Compassvale Drive Pasir Ris Drive 3 / Pasir Ris Drive 10 Upper Serangoon Road / Pheng Geck Avenue (Parcel B) Tanah Merah Kechil Road / Tanah Merah Kechil Link Bright Hill Drive Total Source: Ministry of National Development, 1 ha = 10,000 sqm S/N 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Site area (ha) 1.24 1.26 2.2 2.33 1.32 2.58 2.08 2.04 1.83 2.25 2.25 0.49 1.4 1.3 Proposed GPR (x) 3.5 2.8 3.5 1.4 3 2.8 2.8 2.8 3 3 2.1 3.5 2.8 2.8 Estimated number of residential units 435 370 770 345 395 720 580 600 580 710 495 200 415 405 7,020 Estimated launch date Jan 2012 Jan 2012 Feb 2012 Feb 2012 Feb 2012 Mar 2012 Mar 2012 Mar 2012 Apr 2012 Apr 2012 Apr 2012 May 2012 Jun 2012 Jun 2012

Table 2: Rates for Existing and Additional Buyers Stamp Duty

Type of transaction On and before 7 Dec 2011 Foreigners and non-individuals (corporate entities) buying any BSD rates residential property Permanent Residents (PR) owning one and buying the second BSD rates and subsequent residential property Singapore Citizens (SC) owning two and buying the third and BSD rates subsequent residential property PRs buying the first residential property BSD rates SCs buying the first and/or second residential property BSD rates BSD rates = 1% on first $180,000; 2% on next $180,000; 3% on the remainder Source: Ministry of National Development On or after 8 Dec 2011 BSD rates + 10% BSD rates + 3% BSD rates + 3% BSD rates BSD rates

Table 3: Historical data for Government Land Sales programme

Period Total residential units EC 1H2012 7,020 2,900 2H2011 8,115 1,115 1H2011 8,125 1,870 2H2010 8,135 2,360 1H2010 2,925 950 2H2009 1H2009 2H2008 1,122 620 1H2008 2,964 2H2007 3,014 1H2007 275 Source: Ministry of National Development Confirmed List Commercial space (sqm) 110,950 98,120 184,240 51,370 146,120 165,870 230,230 Total residential units 7,120 6,080 6,185 5,770 7,625 8,655 7,915 6,840 5,285 5,020 5,200 Reserve List Commercial space (sqm) 218,120 156,690 219,740 215,590 417,740 448,550 511,490 350,010 265,930 187,990 262,650

Private 4,120 7,000 6,255 5,775 1,975 502 2,964 3,014 275

Hotel rooms 435 315 700 1,670 1,810 1,085

Hotel rooms 4,750 3,315 3,735 3,435 4,515 4,430 5,160 5,050 4,185 4,650 4,200

8 December 2011

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Property Sector Table 4: Foreigner as a percentage of total buyers for selected projects
Project SC A Treasure Trove 384 Boathouse Residences 210 Canberra Residences 220 dLeedon 258 Eight Courtyards 320 EuHabitat 185 Foresque Residences 151 H2O Residences 264 Hedges Park Condominium 232 Nin Residence 114 NV Residences 440 Seastrand 196 Silversea 41 Spottiswoode 18 185 Spottiswoode Residences 243 Terrasse 230 The Cascadia 222 The Estuary 487 The Greenwich 228 The Interlace 219 The Lakefront Residences 438 The Laurels 74 The Luxurie 143 The Miltonia Residences 217 The Minton 574 The Scala 330 The Tennery 229 Thomson Grand 57 Tree House 332 Waterbank At Dakota 492 Waterfront Gold 210 Waterfront Isle 263 Waterview 452 Source: URAs 2010-2011 new sale data PR 29 19 29 41 76 45 16 21 21 8 71 31 48 17 21 17 40 53 9 61 71 22 12 22 49 35 13 15 38 49 32 57 53 Foreigner 15 15 15 78 29 140 17 15 14 13 66 37 120 12 21 13 42 24 4 91 35 65 20 16 71 34 43 27 17 35 59 100 21 Nonindividual 11 Total caveats 439 244 264 387 426 375 184 300 268 143 577 264 214 215 294 260 305 564 241 384 550 181 176 256 695 403 290 100 394 582 305 420 529 SC (%) 87% 86% 83% 67% 75% 49% 82% 88% 87% 80% 76% 74% 19% 86% 83% 88% 73% 86% 95% 57% 80% 41% 81% 85% 83% 82% 79% 57% 84% 85% 69% 63% 85% PR (%) 7% 8% 11% 11% 18% 12% 9% 7% 8% 6% 12% 12% 22% 8% 7% 7% 13% 9% 4% 16% 13% 12% 7% 9% 7% 9% 4% 15% 10% 8% 10% 14% 10% Foreigner (%) 3% 6% 6% 20% 7% 37% 9% 5% 5% 9% 11% 14% 56% 6% 7% 5% 14% 4% 2% 24% 6% 36% 11% 6% 10% 8% 15% 27% 4% 6% 19% 24% 4% Nonindividual (%) 3% 0% 0% 3% 0% 1% 0% 0% 0% 6% 0% 0% 2% 0% 3% 0% 0% 0% 0% 3% 1% 11% 1% 0% 0% 1% 2% 1% 2% 1% 1% 0% 1%

10 1 5

1 8

5 1 9 1

13 6 20 1 1 1 4 5 1 7 6 4 3

Table 5: Who will have to cut prices? Implied margins for GLS residential sites sold in 2011
Location Bishan Street 14 Bedok Reservoir Road Sengkang Square / Compassvale Road Choa Chu Kang Drive Bartley Road / Lorong How Sun Bendemeer Road / Whampoa East Tampines Central 7 Jalan Loyang Besar / Pasir Ris Drive 4 Sembawang Road / Jalan Sendudok Buangkok Drive / Sengkang East Drive Woodlands Avenue 2 / Rosewood Drive Flora Drive West Coast Link / West Coast Crescent Choa Chu Kang Road / Phoenix Road Punggol Way / Punggol Field Upper Serangoon Road / Pheng Geck Avenue Sep-11 Punggol Field Walk Sep-11 Upper Serangoon Crescent / Upper Serangoon Road Oct-11 Jln Loyang Besar / Pasir Ris Rise Oct-11 Pasir Ris Drive 3 / Pasir Ris Rise (EC) Oct-11 Flora Drive Oct-11 Yishun Avenue 7 / Canberra Drive (EC) Nov-11 Punggol Central / Edgedale Plains Nov-11 Yishun Avenue 1 / Miltonia Close Nov-11 Chestnut Avenue Dec-11 Alexandra Road Source: URA, HDB, Kim Eng Tender close Feb-11 Mar-11 Mar-11 Mar-11 Mar-11 Apr-11 Apr-11 May-11 May-11 Jun-11 Jun-11 Jun-11 Jun-11 Jun-11 Jul-11 Aug-11 Type Residential Residential Residential EC Residential Residential EC Residential Residential Residential Residential Residential Residential Residential EC Residential Residential Residential Residential EC Residential EC Residential Residential Residential Residential Top bid $psf ppr 869.4 465.4 501.8 320.9 620.6 774.1 392.4 402.4 460.0 391.3 367.2 325.1 460.6 410.5 270.1 567.3 Developer CapitaLand UOL Keppel Land CDL CDL UE Sim Lian MCL Land Hao Yuan Qingdao Fragrance / Aspial Frasers Centrepoint Far East Far East + China Construction Frasers Centrepoint / Keong Hong Tuan Sing Breakeven $psf 1,322 825 864 612 997 1,163 689 753 816 742 715 669 819 763 557 989 667 634 709 580 707 581 680 711 834 1,196 Assumed Pre-tax ASP margins $psf % 1,500 12% 1,000 18% 1,000 14% 700 13% 1,200 17% 1,200 3% 700 2% 850 11% 850 4% 900 18% 850 16% 850 21% 1,000 18% 900 15% 700 20% 1,200 850 900 900 700 800 700 850 850 1,100 1,400 18% 22% 30% 21% 17% 12% 17% 20% 16% 24% 15%

323.0 Capital Development / ZACD 291.4 Allgreen 361.0 291.1 361.2 292.6 334.6 363.6 425.8 754.4 Hoi Hup + Sunway EVIA / UE / Ho Lee / GPS Koh Brothers MCC Land Qingjian TG Development SP Setia CDL / Hong Leong

8 December 2011

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Property Sector Table 6: Developers land bank

Developer City Dev District 06 09 10 10 11 17 18 18 18 18 19 19 23 23 Sentosa Land bank South Beach (Beach Road) Futura (Leonie Road) Boulevard Hotel (Cuscaden Road) Lucky Tower (Grange Road) Buckley Classique (Buckley Road) Hedges Park (Flora Road) NV Residences (Pasir Ris) Pasir Ris Grove, parcel 3 + state land (Pasir Ris) Pasir Ris Drive 8, parcels 4 + 5 (Pasir Ris) Tampines/Upp Changi Rd North H2O Residences (Sengkang West Ave) Bartley Road GLS (Bartley Road) Choa Chu kang GLS (EC) (Choa Chu Kang Drive) Segar Road GLS (EC) (Segar Road) Residences at W (Sentosa Cove) Tenure 99-yr Freehold Freehold Freehold Freehold 99-yr 99-yr 99-yr 99-yr Freehold 99-yr 99-yr 99-yr 99-yr 99-yr Total 99-yr Freehold 99-yr 99-yr 99-yr 99-yr 99-yr 99-yr Total 99-yr Freehold 99-yr Freehold Freehold 99-yr 99-yr Freehold Total 99-yr 99-yr Total Freehold 99-yr Total 99-yr Freehold 999-yr 999-yr 999-yr 99-yr Freehold Total Freehold Freehold Total 99-yr 99-yr Freehold Total Freehold Freehold Freehold Total Unsold units 119 122 203 178 22 181 36 752 1,517 605 153 560 490 237 207 5,381 77 620 313 307 234 94 471 24 2,140 351 40 1,280 55 150 110 650 140 3,135 112 357 469 35 640 675 194 80 248 147 102 860 25 1,656 91 84 175 500 424 40 964 66 24 221 311

Keppel Land

01 02 04 04 04 04 19 22

Marina Bay Suites (Marina Bay) Keppel & GE Towers site (Tanjong Pagar) Reflections at Keppel Bay (Keppel Bay) Keppel Bay Plot 3 (Keppel Bay) Keppel Bay Plot 4 (Keppel Bay) Keppel Bay Plot 5 (Keppel Bay) Sengkang GLS site (Sengkang Square) The Lakeside Residences (Lakeside Drive)

CapitaLand

03 09 10 10 15 16 20 26

The Interlace (Gillman Heights) Urban Resort (Cairnhill Rd) Dleedon (Farrer Rd) The Nassim (Nassim Rd) Marine Point (Marine Parade) Bedok Residences (Bedok Central) Bishan GLS site (Bishan Street 14) Yio Chu Kang site (Yio Chu Kang Rd)

Ho Bee

Sentosa Sentosa

Seascape at Sentosa Cove (Sentosa Cove) Pinnacle at Sentosa Cove (Sentosa Cove)

UOL

02 16

Spottiswoode Residences (Spottiswoode Park) Bedok Reservoir (Bedok Reservoir Rd)

Allgreen

02 05 09 12 12 19 21

Skysuites @ Anson (Enggor Street) Project at West Coast Rd (West Coast Road) RV Residences (River Valley) RiverBay (Mar Thoma Rd) Riviera 38 (Mar Thoma Rd) Upper Serangoon Road The Cascadia (Bukit Timah Road)

Wheelock

09 10

Scotts Square (Scotts Road) Ardmore 3 (Ardmore Park)

Guocoland

02 10 26

Tanjong Pagar GLS white site (Peck Seah/Choon Guan) Leedon Residence (Leedon Heights) The Waterline (Yio Chu Kang Rd)

Bukit Sembawang

09 09 09

The Vermont on Cairnhill (Cairnhill Rd) Paterson Suites (Paterson Rd) St Thomas Walk (St Thomas Walk)

8 December 2011

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Property Sector Table 6: Developers land bank (contd)

Developer Frasers Centrepoint District 09 15 16 16 18 18 19 19 19 27 Land bank StarHub Centre Flamingo Valley (Siglap Rd) Waterfront Gold (Bedok Reservoir Rd) Waterfront Isle (Bedok Reservoir Rd) Seastrand (Pasir Ris Drive 3) Pasir Ris GLS site (Flora Drive) Boathouse Residences (Upper Serangoon Road) Esparina Residences (Sengkang) Punggol GLS mixed site (Punggol Central) Eight Courtyards (Yishun Ave 2) Tenure 99-yr Freehold 99-yr 99-yr 99-yr 99-yr 99-yr 99-yr 99-yr 99-yr Total 99-yr Freehold Freehold Freehold Freehold Freehold 99-yr Total Freehold Freehold 99-yr 99-yr Total Freehold Freehold Freehold Freehold 99-yr Total Unsold units 240 220 4 81 215 380 291 1 685 141 2,258 47 64 38 42 157 40 299 687 70 65 580 122 837 37 208 23 50 31 349

Wing Tai

03 09 09 10 10 11 23

Ascentia Sky (Redhill) HELIOS Residence (Cairnhill Circle) Belle Vue Residences (Oxley Walk) Le Nouvel Ardmore (Ardmore Park) Anderson 18 (Ardmore Park) L'VIV (Newton Rd) Foresque Residences (Petir Road)

MCL Land

10 15 17 19

NOB Hill (Ewe Boon Rd) Casa Nassau (East Coast Rd) Pasir Ris GLS site (Jalan Loyang Besar) Terrasse (Hougang Ave 2)

SC Global

9 9 9 10 Sentosa

The Marq (Paterson Hill) Hilltops (Cairnhill Circle) Martin No. 38 (Martin Rd) The Ardmore (Ardmore Road) Seven Palms (Sentosa Cove)

Source: Kim Eng

Table 7: Valuations
Name CapitaLand CityDev Ho Bee HPL KepLand SC Global SingLand UOL Wheelock Wing Tai N.A. = No Coverage Price 2.43 9.22 1.135 1.78 2.44 1.095 5.85 4.04 1.585 1.005 *As at latest reported RNAV 3.92 13 2.69 4.39 5.08 4.74 9.82 N.A. N.A. 2.85 Disc/ Prem to RNAV -38% -29% -58% -59% -52% -77% -40% N.A. N.A. -65% NTA/share* 3.18 7.31 2.22 2.7 2.78 1.6 10.74 6.43 2.35 2.49 Disc/ Prem to NTA/share -24% 26% -49% -34% -12% -32% -46% -37% -33% -60%

8 December 2011

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Property Sector

ANALYSTSCOVERAGE/RESEARCHOFFICES

MALAYSIA
WONG Chew Hann, CA Head of Research (603) 2297 8686 wchewh@maybank-ib.com Strategy Construction & Infrastructure Desmond CHNG, ACA (603) 2297 8680 desmond.chng@maybank-ib.com Banking - Regional LIAW Thong Jung (603) 2297 8688 tjliaw@maybank-ib.com Oil & Gas Automotive Shipping ONG Chee Ting (603) 2297 8678 ct.ong@maybank-ib.com Plantations Mohshin AZIZ (603) 2297 8692 mohshin.aziz@maybank-ib.com Aviation Petrochem Power YIN Shao Yang, CPA (603) 2297 8916 samuel.y@maybank-ib.com Gaming Regional Media Power WONG Wei Sum (603) 2297 8679 weisum@maybank-ib.com Property & REITs LEE Yen Ling (603) 2297 8691 lee.yl@maybank-ib.com Building Materials Manufacturing Technology Farouq Azizul MAHMUD (603) 2297 8687 farouq@maybank-ib.com Automotive LEE Cheng Hooi Head of Retail chenghooi.lee@maybank-ib.com Technicals

SINGAPORE
Stephanie WONG Head of Research (65) 6432 1451 swong@kimeng.com Strategy Small & Mid Caps Gregory YAP (65) 6432 1450 gyap@kimeng.com Conglomerates Technology & Manufacturing Telcos - Regional Rohan SUPPIAH (65) 6432 1455 rohan@kimeng.com Airlines Marine & Offshore Wilson LIEW (65) 6432 1454 wilsonliew@kimeng.com Hotel & Resort Property & Construction Anni KUM (65) 6432 1470 annikum@kimeng.com Conglomerates REITs James KOH (65) 6432 1431 jameskoh@kimeng.com Finance Logistics Resources Eric ONG (65) 6432 1857 ericong@kimeng.com Marine & Offshore Transportation Energy OOI Yi Tung (65) 6433 5712 ooiyitung@kimeng.com Property & Construction YEAK Chee Keong, CFA (65) 6433 5730 yeakcheekeong@kimeng.com Retail & Consumer Engineering Infrastructure Alison FOK (65) 6433 5745 alisonfok@kimeng.com Services

PHILIPPINES
Luz LORENZO Head of Research +63 2 849 8836 luz_lorenzo@atr.com.ph Strategy Laura DY-LIACCO (63) 2 849 8840 laura_dyliacco@atr.com.ph Utilities Conglomerates Telcos Lovell SARREAL (63) 2 849 8841 lovell_sarreal@atr.com.ph Consumer Media Cement Mining Kenneth NERECINA (63) 2 849 8839 kenneth_nerecina@atr.com.ph Conglomerates Property Ports/ Logistics Katherine TAN (63) 2 849 8843 kat_tan@atr.com.ph Banks Construction

VIETNAM
Michael Kokalari, CFA Head of Research (84) 838 38 66 36 x 116 michael.kokalari@kimeng.com.vn Strategy Nguyen Thi Ngan Tuyen (84) 838386636 x163 tuyen.nguyen@kimeng.com.vn Conglomerates Confectionary and Beverage Oil and Gas Ngo Bich Van (84) 838 38 66 36 x 171 van.ngo@kimeng.com.vn Banking Insurance Nguyen Quang Duy (84) 838386636 x162 duy.nguyenquang@kimeng.com.vn Industrial Property Trinh Thi Ngoc Diep (84) 422 21 22 08 x 102 diep.trinh@kimeng.com.vn Property & Construction Power Dang Thi Kim Thoa (84) 838 38 66 36 x 164 thoa.dang@kimeng.com.vn Consumer Services

HONG KONG / CHINA

Edward FUNG Head of Research (852) 2268 0632 edwardfung@kimeng.com.hk Construction Ivan CHEUNG (852) 2268 0634 ivancheung@kimeng.com.hk Property Industrial Ivan LI (852) 2268 0641 ivanli@kimeng.com.hk Banking & Finance Jacqueline KO (852) 2268 0633 jacquelineko@kimeng.com.hk Consumer Staples Andy POON (852) 2268 0645 andypoon@kimeng.com.hk Telecom & related services Samantha KWONG (852) 2268 0640 samanthakwong@kimeng.com.hk Consumer Discretionaries Alex YEUNG (852) 2268 0636 alexyeung@kimeng.com.hk Industrial

INDONESIA
Katarina SETIAWAN Head of Research (62) 21 2557 1125 ksetiawan@kimeng.co.id Consumer Strategy Telcos Rahmi MARINA (62) 21 2557 1128 rmarina@kimeng.co.id Banking Multifinance Lucky ARIESANDI, CFA (62) 21 2557 1127 lariesandi@kimeng.co.id Base metals Coal Heavy Equipment Oil & gas Adi N. WICAKSONO (62) 21 2557 1130 anwicaksono@kimeng.co.id Generalist Arwani PRANADJAYA (62) 21 2557 1129 apranadjaya@kimeng.co.id Technicals

ECONOMICS
Suhaimi ILIAS Chief Economist (603) 2297 8682 suhaimi_ilias@maybank-ib.com Luz LORENZO Economist (63) 2 849 8836 luz_lorenzo@atr.com.ph Philippines Indonesia

REGIONAL
ONG Seng Yeow (65) 6432 1832 ongsengyeow@kimeng.com Regional Products & Planning

INDIA
Jigar SHAH Head of Research (91) 22 6623 2601 jigar@kimeng.co.in Oil & Gas Automobile Cement Anubhav GUPTA (91) 22 6623 2605 anubhav@kimeng.co.in Metal & Mining Capital goods Property Haripreet BATRA (91) 226623 2606 haripreet@kimeng.co.in Software Media Ganesh RAM (91) 226623 2607 ganeshram@kimeng.co.in Telecom Contractor

THAILAND
Mayuree CHOWVIKRAN Head of Research (66)-2658-6300 ext 1440 mayuree.c@kimeng.co.th Strategy Suttatip PEERASUB (66)-2658-6300 ext 1430 suttatip.p@kimeng.co.th Media Commerce Sutthichai KUMWORACHAI (66)-2658-6300 ext 1400 sutthichai.k@kimeng.co.th Energy Petrochem Termporn TANTIVIVAT (66)-2658-6300 ext 1520 termporn.t@kimeng.co.th Property Woraphon WIROONSRI (66)-2658-6300 ext 1560 woraphon.w@kimeng.co.th Bank Jaroonpan WATTANAWONG (66)-2658-6300 ext 1404 jaroonpan.w@kimeng.co.th Transportation Small cap.

8 December 2011

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Property Sector

APPENDIX 1
Definition of Ratings
Kim Eng Research uses the following rating system: BUY HOLD SELL Total return is expected to be above 10% in the next 12 months Total return is expected to be between -5% to 10% in the next 12 months Total return is expected to be below -5% in the next 12 months

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

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

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

APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLOSURES AND DISCLAIMERS

This report, and any electronic access to it, is restricted to and intended only for clients of Kim Eng Research Pte. Ltd. ("KER") or a related entity to KER (as the case may be) who are institutional investors (for the purposes of both the Singapore Securities and Futures Act (SFA) and the Singapore Financial Advisers Act (FAA)) and who are allowed access thereto (each an "Authorised Person") and is subject to the terms and disclaimers below. IF YOU ARE NOT AN AUTHORISED PERSON OR DO NOT AGREE TO BE BOUND BY THE TERMS AND DISCLAIMERS SET OUT BELOW, YOU SHOULD DISREGARD THIS REPORT IN ITS ENTIRETY AND LET KER OR ITS RELATED ENTITY (AS RELEVANT) KNOW THAT YOU NO LONGER WISH TO RECEIVE SUCH REPORTS. This report provides information and opinions as reference resource only. This report is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. It is not to be construed as a solicitation or an offer to buy or sell any securities or related financial products. The information and commentaries are also not meant to be endorsements or offerings of any securities, options, stocks or other investment vehicles. The report has been prepared without regard to the individual financial circumstances, needs or objectives of persons who receive it. The securities discussed in this report may not be suitable for all investors. Readers should not rely on any of the information herein as authoritative or substitute for the exercise of their own skill and judgment in making any investment or other decision. Readers should independently evaluate particular investments and strategies, and are encouraged to seek the advice of a financial adviser before making any investment or entering into any transaction in relation to the securities mentioned in this report. The appropriateness of any particular investment or strategy whether opined on or referred to in this report or otherwise will depend on an investors individual circumstances and objectives and should be confirmed by such investor with his advisers independently before adoption or implementation (either as is or varied). You agree that any and all use of this report which you make, is solely at your own risk and without any recourse whatsoever to KER, its related and affiliate companies and/or their employees. You understand that you are using this report AT YOUR OWN RISK. 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Property Sector

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Stockbroking Business:

Level 8, Tower C, Dataran Maybank, No.1, Jalan Maarof 59000 Kuala Lumpur Tel: (603) 2297 8888 Fax: (603) 2282 5136

Kim Eng Securities (HK) Ltd Level 30, Three Pacific Place, 1 Queens Road East, Hong Kong Tel: (852) 2268 0800 Fax: (852) 2877 0104

Hong Kong

Indonesia

PT Kim Eng Securities Plaza Bapindo Citibank Tower 17th Floor Jl Jend. Sudirman Kav. 54-55 Jakarta 12190, Indonesia Tel: (62) 21 2557 1188 Fax: (62) 21 2557 1189

India

Kim Eng Securities India Pvt Ltd 2nd Floor, The International 16, Maharishi Karve Road, Churchgate Station, Mumbai City - 400 020, India Tel: (91).22.6623.2600 Fax: (91).22.6623.2604

Maybank ATR Kim Eng Securities Inc. 17/F, Tower One & Exchange Plaza Ayala Triangle, Ayala Avenue Makati City, Philippines 1200 Tel: (63) 2 849 8888 Fax: (63) 2 848 5738

Philippines

Maybank Kim Eng Securities (Thailand) Public Company Limited 999/9 The Offices at Central World, 20th - 21st Floor, Rama 1 Road Pathumwan, Bangkok 10330, Thailand Tel: (66) 2 658 6817 (sales) Tel: (66) 2 658 6801 (research)

Thailand

Vietnam

In association with

Saudi Arabia
In association with

Kim Eng Vietnam Securities Company 1st Floor, 255 Tran Hung Dao St. District 1 Ho Chi Minh City, Vietnam Tel : (84) 838 38 66 36 Fax : (84) 838 38 66 39

Anfaal Capital Villa 47, Tujjar Jeddah Prince Mohammed bin Abdulaziz Street P.O. Box 126575 Jeddah 21352 Tel: (966) 2 6068686 Fax: (966) 26068787

Connie TAN connie@kimeng.com Tel: (65) 6333 5775 US Toll Free: 1 866 406 7447

South Asia Sales Trading

North Asia Sales Trading

Eddie LAU eddielau@kimeng.com.hk Tel: (852) 2268 0800 US Toll Free: 1 866 598 2267

www.maybank-ib.com | www.kimengresearch.com.sg

APPENDIX I
Additional information on mentioned securities is available on request. Jurisdiction Specific Additional Disclaimers: THIS RESEARCH REPORT IS STRICTLY CONFIDENTIAL TO THE RECIPIENT, MAY NOT BE DISTRIBUTED TO THE PRESS OR OTHER MEDIA, AND MAY NOT BE REPRODUCED IN ANY FORM AND MAY NOT BE TAKEN OR TRANSMITTED INTO THE REPUBLIC OF KOREA, OR PROVIDED OR TRANSMITTED TO ANY KOREAN PERSON. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF SECURITIES LAWS IN THE REPUBLIC OF KOREA. BY ACCEPTING THIS REPORT, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. THIS RESEARCH REPORT IS STRICTLY CONFIDENTIAL TO THE RECIPIENT, MAY NOT BE DISTRIBUTED TO THE PRESS OR OTHER MEDIA, AND MAY NOT BE REPRODUCED IN ANY FORM AND MAY NOT BE TAKEN OR TRANSMITTED INTO MALAYSIA OR PROVIDED OR TRANSMITTED TO ANY MALAYSIAN PERSON. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF SECURITIES LAWS IN MALAYSIA. BY ACCEPTING THIS REPORT, YOU AGREE TO BE BOUND BY THE FOREGOING LIMITATIONS. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply if the reader is receiving or accessing this report in or from other than Singapore. As of 8 December 2011, Kim Eng Research Pte. Ltd. and the covering analyst do not have any interest in the companies. Analyst Certification: The views expressed in this research report accurately reflect the analyst's personal views about any and all of the subject securities or issuers; and no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the report. 2011 Kim Eng Research Pte Ltd. All rights reserved. Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of Kim Eng Research Pte. Ltd. Kim Eng Research Pte. Ltd. accepts no liability whatsoever for the actions of third parties in this respect.

Stephanie Wong CEO, Kim Eng Research

8 December 2011

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