Anda di halaman 1dari 13

Property Devt & InvtMalaysia

August 1, 2013

NOT RATED

LBS Bina Group


LBS MK / LBSB.KL

Current

Market Cap

Avg Daily Turnover

Free Float

RM1.33
N/A

Target

US$159.2m

US$1.36m

49.1%

Prev. Target

RM516.4m

RM4.23m

395.3 m shares

Up/Downside

N/A
N/A
Conviction|

Still deeply undervalued

CIMB Analyst(s)

LBS has finally re-rated after a long slumber, driven by the sale of its
China landbank. There are more catalysts in the pipeline including: 1)
potential special dividends; 2) ramp up of Malaysian operations; and
3) further unlocking of its final China asset.

Terence WONG, CFA


T (60) 3 2084 9689
E terence.wong@cimb.com

Company Visit
Channel Check

Expert Opinion
Customer Views

Share price info


Share price perf. (%)

1M

3M

12M

Relative

6.5

43

47.9

Absolute

6.4

46.2

56.5

Major shareholders

% held

Intelrich Sdn Bhd

50.9

LBS Bina is trading at a 74% discount


to its fully diluted RNAV/share of
RM5.05. Applying the same 40%
discount we used in our last note on
the company in 2012, which is wider
than the maximum 30% discount
used for bigger market cap property
stocks under our coverage, we derive
a value of RM3.03/share. This offers
an upside of over 100%.

China, China, China


LBS's share price has been in the
doldrums for nearly 10 years, since its
peak in 2003. It has finally started to
recover in recent months as the sale
of two parcels of land in China is close
to being finalised. We expect the deal
to be concluded by mid-Aug, when a
sizeable part of the HK$1.65bn sale
price is paid to LBS. The selling price
of HK$1.65bn, or RM681m, is more
than the entire market cap of LBS.

Dividends and land buys


LBS will use part of the proceeds to
reward long-suffering shareholders
via a special dividend. As payment for
the land is staggered over five years,
we believe the combined special

Vol m

Price Close

dividend plus the normal dividend


should provide investors an annual
net dividend yield of 6-7%. This will
be significantly higher than the 3-4%
range for property developers under
our coverage. LBS will use the bulk of
the China land sale proceeds to pare
down gearing and to replenish its
landbank as it refocuses its attention
on the domestic property market. We
believe this is the right thing to do as
the outlook for the Malaysian
property market remains bright.

Another valuable piece of


land in China
Beyond the first two parcels of land in
China, LBS owns a third piece and
arguably the most valuable piece. It
sits right next to the first two parcels
and is designated for commercial
purposes. At 264 acres, LBS's 60%
stake in the land is conservatively
worth RM741m if we peg it to the
residential land value from the first
two parcels. If we peg it to
commercial land value in Zhuhai,
which is 50-100% higher, the land
could be worth RM1.1bn-1.5bn.

Relative to FBMKLCI (RHS)

1.5
1.4
1.3
1.2
1.1
1.0
0.9
0.8
50
0.7
40
30
20
10

169
159
149
139
129
119
109
99
89

Aug-12
Nov-12
Source: Bloomberg

Feb-13

May-13

EFAPChartPriceVolRelDaily|

52-week share price range


1.33
1.46

0.84

Current

SOURCE: CIMB, COMPANY REPORTS


IMPORTANT DISCLOSURES, INCLUDING ANY REQUIRED RESEARCH CERTIFICATIONS, ARE PROVIDED AT THE END OF THIS REPORT.
Designed by Eight, Powered by EFA

LBS Bina Group


August 1, 2013

1. BACKGROUND
1.1 Breaking out at last
We first wrote about LBS in 2006 when the company secured three parcels of
landbank measuring a combined 825 acres in Zhuhai, China. At that time we
thought the announcement would rerate the stock as investors had waited
several years for it to materialise. But that was not the case and the stock
continued to languish. We revisited LBS in 2011 after the group restrategised its
activities and shifted its focus to Malaysia with more emphasis on the
mid-to-high end residential market. It also sought to unlock the value of its
China landbank through an outright sale.
In 2012, the sale of the China landbank became a reality as the company signed
an MOU with Jiuzhou Development Company Ltd to sell its stake in Dragon
Hill Corporation Ltd for up to HK$1.65bn. Dragon Hill Corp owns 60% of a
197-acre mixed development land as well as a 338-acre golf course. Jiuzhou had
six months to undertake due diligence on Dragon Hill but had to extend the
completion date by another six months. The sales & purchase agreement was
finally signed on Apr 10 this year, but it was only after the 13th general elections
that LBS's share price started to re-rate significantly.

Figure 1: LBS share price since IPO


1.98
1.78
1.58
1.38
1.18
0.98
0.78
0.58
0.38

1/30/2002
5/2/2002
7/25/2002
10/16/2002
1/20/2003
4/22/2003
7/17/2003
10/9/2003
1/8/2004
4/8/2004
7/2/2004
9/24/2004
12/22/2004
3/22/2005
6/16/2005
9/8/2005
12/5/2005
3/7/2006
6/1/2006
8/23/2006
11/20/2006
2/15/2007
5/16/2007
8/7/2007
10/31/2007
1/30/2008
4/28/2008
7/23/2008
10/20/2008
1/16/2009
4/17/2009
7/10/2009
10/6/2009
12/31/2009
3/31/2010
6/23/2010
9/17/2010
12/14/2010
3/15/2011
6/8/2011
9/2/2011
11/30/2011
3/1/2012
5/25/2012
8/16/2012
11/16/2012
2/19/2013
5/15/2013

0.18

LBS

SOURCES: CIMB, COMPANY REPORTS

2. OUTLOOK
2.1 More to look forward to
We believe the re-rating is just the start of more good news to come. The long
wait for the firm to unlock the value of its landbank in China is finally coming to
fruition and there are significant implications. Firstly, the selling price of
HK$1.65bn, or RM681m (RM1.76/share), is more than the entire market cap of
LBS. The sale proceeds will have three key implications on LBS: 1) it will likely
lead to higher dividends over the next few years; 2) it will provide ammunition
for the group to add landbank domestically; and 3) it will raise the question as
to what LBS will do with its last tract of land in China.

2.2 Special dividends?


The two parcels of land in Zhuhai sold are: 1) 197 acres of mixed development
land; and 2) the 338-acre Lakewood Golf Club. The development land was
valued by Colliers International (HK) Ltd at RM922m, or RM107 psf, while the

LBS Bina Group


August 1, 2013

golf course was valued at RM207m, or RM14 psf. LBS managed to sell the two
parcels of land for a slightly higher combined price of HK$1.65bn, or RM681m.
On completion of the sale later this month, LBS will be paid:
1) HK$500m, or RM206m, in cash;
2) 225.5m shares in Zhuhai Holdings Investment Group Ltd (ZHIG) at
HK$1.33 worth HK$300m, or RM124m; and
3) promissory notes of HK$850m, or RM351m, staggered over four years.

Figure 2: Valuation of China landbank by Colliers International


Development land
Lakewood Golf Club

HK$ m

RM m

2,232.3

921.7

501.2

206.9

Total

2,733.5

1,128.6

LBS's 60% stake

1,640.1

677.2
SOURCES: CIMB, COMPANY REPORTS

Figure 3: Promissory notes


On or
before

HK$ m

RM m

31-Dec-14

250

103.23

31-Dec-15

200

82.58

31-Dec-16

200

82.58

31-Dec-17

200

82.58

Total

850

350.97
SOURCES: CIMB, COMPANY REPORTS

There is no moratorium on LBS's stake in the HK-listed ZHIC (previously


known as Jiuzhou Development Company Ltd) but it believes the stock is
significantly undervalued and will only sell at the right price. Technically LBS
can pay out as special dividend of 53 sen/share from the RM206m cash
proceeds and another 21-27 sen/share annually for the next four years from the
conversion of RM83m-103m worth of promissory notes, but we believe the
group will conserve its cash proceeds to pare down its gearing and to buy more
land. LBS has RM373m in total borrowings, or gearing of 0.8x (net gearing of
0.65x) which can be brought down to 0.36x when the first tranche of cash
proceeds is received. We believe LBS will aim to reward shareholders with a
total net dividend yield of around 6-7% over the next 4-5 years, which will be
higher than the average of 3-4% for the developers under our coverage.

2.3 Acquiring new landbank


LBS is refocusing its efforts on property projects in Malaysia. It is targeting to
double its net profit by 2015. In the past five years, new sales have surged many
fold from a low of RM107m in 2008 during the global financial crisis to a
record RM871m last year. To ensure the growth in sales and profit is sustained,
LBS needs to continuously acquire new landbank. At present, the group has
RM15bn worth of undeveloped GDV. Its key projects are located mainly in
Selangor, Cameron Highlands and Johor. The company is eyeing more
landbank particularly in the Klang Valley and Iskandar Malaysia. By increasing
its footprint and size in Malaysia, LBS may eventually become too big for the
investment community to ignore.

LBS Bina Group


August 1, 2013

Figure 4: Landbank in Malaysia (acres)


On-going

Future

Total

247

692

939

44%

28

187

215

10%

406

406

19%

39

523

562

26%

314

1,808

2,122

100%

Klang Valley
Pahang
Perak

Johor

SOURCES: CIMB, COMPANY REPORTS

Figure 5: Landbank and undeveloped GDV


Acres

GDV (RM m)

Bandar Saujana Putra, Selangor

221

4,920

32%

D'Island, Puchong, Selangor

115

2,543

17%

86

2,257

15%

522

1,351

9%

Tengkolok, Cameron Highlands

38

685

4%

Kompung Raja, Cameron Highlands

30

536

4%

500

3%

24

449

3%

Land in Ipoh, Perak

376

425

3%

Taman Greenhill, Shah Alam, Selangor

150

421

3%

58

377

2%

357

2%

100

296

2%

Taman Tasik Puchong Phase 2, Selangor

48

92

1%

Puncak Jelapang Maju, Perak

30

27

0%

1,808

15,236

100%

The Centrum, Cameron Highliands


Bandar Putera Indah, Batu Pahat, Johor

Iskandar Malaysia zone A


Golden Hills

Usaha Semarak
Taman Royal Lily, Cameron Highlands
Desiran Bayu@Puchong, Selangor

Total

SOURCES: CIMB, COMPANY REPORTS

Figure 6: Sales trend


1000

600,000

900
500,000

800

700

400,000

600
500

300,000

400
200,000

300
200

100,000

100

0
FY02

FY03

FY04

FY05

FY06

FY07

New sales (RM m)

FY08

FY09

FY10

FY11

FY12

Avg price (RM)

SOURCES: CIMB, COMPANY REPORTS

2.4 One more China landbank


Beyond the first two parcels of land in China, LBS owns a third piece and
arguably the most valuable piece. The land is currently the Zhuhai International
Circuit (ZIC) and LBS can exercise its option to acquire the land for US$1,
similar to what it did for the first two parcels. ZIC sits right next to the first two
parcels of land sold and is designated for commercial purposes. Measuring 264
acres, the 60% stake in the land is conservatively worth RM741m based on the
value (RM107 psf) of the 197-acre mixed development land sold. If we peg it to
the commercial land value in Zhuhai, which is easily 50-100% higher, the 60%
stake in the land will be worth RM1.1bn-1.5bn. LBS is still not decided on what
4

LBS Bina Group


August 1, 2013

to do with the ZIC land, but plans to exercise the option in 2014 to acquire the
land so that it will be on the company's books. With ZHIG planning to launch
developments on the two parcels of land acquired from LBS next year, land
values in the area can be expected to appreciate further.

Figure 7: Site of Zhuhai landbank

SOURCES: CIMB, COMPANY REPORTS

3. RISKS
3.1 China slowdown
The property market in China will be affected by the economic performance of
the country. China's economic slowdown could dampen the sentiment for
properties in general. The value of LBS's final landbank in Zhuhai will also be
affected by the macroeconomic outlook and policies. But LBS is in no hurry to
develop the land or sell it outright. In fact, it stands to benefit from the
construction of the Hong Kong-Zhuhai-Macau Link Bridge that is slated for
completion in 2016. The 29km bridge costing RM36bn will cut short the
travelling time from Hong Kong substantially and should be a boon to property
values. It now takes over an hour by flight and over three hours by road from
Hong Kong to Zhuhai, but with the bridge the travelling time will be reduced to
only 30 minutes.

LBS Bina Group


August 1, 2013

Figure 8: Hong Kong-Zhuhai-Macau Link Bridge

SOURCES: CIMB, COMPANY REPORTS

3.2 Malaysia to curb speculation?


Bank Negara Malaysia recently imposed measures to curb consumer debt
including reduction of the maximum housing loan tenure from 45 years to 35
years. This is to avoid excessive household indebtedness. There were also press
reports that the central bank was studying the risks arising from the developer
interest-bearing scheme (DIBS) with a view of potentially imposing curbs on it.
Curbing DIBS would negatively affect the sentiment for properties in the short
term. But given the strong fundamentals of the residential sector, with
affordability close to the best levels ever seen, the transaction volume and
property prices should remain firm over the longer term.

Figure 9: Policies to curb speculation


Date

Policy

Oct-09

Reintroduction of RPGT at 5% for first five years

Nov-11

Loan-to-value ratio for 3rd property capped at 70%

Oct-11

RPGT raised to 10% for first two years

Jan-12

Loan eligibility based on net pay and not gross pay

Oct-12

RPGT raised by 5%pts for all five years

Jul-13

Housing loan tenure capped at 35 years from 45 previously


SOURCES: CIMB, COMPANY REPORTS

LBS Bina Group


August 1, 2013

Figure 10: Affordability index for Malaysia

Figure 11: Affordability index for the Klang Valley

4.50

4.50

4.00

4.00

3.50

3.50

3.00

3.00

2.50

2.50

2.00

2.00

1.50

1.50

1.00

1.00

0.50

0.50

0.00

0.00

SOURCES: CIMB, BNM, DOS, PMR, MOF

SOURCES: CIMB, BNM, DOS, PMR, MOF

4. VALUATION
4.1 Significant implications
The conclusion of the China landbank sale is important to LBS on so many
levels. Firstly, the company's credibility is greatly enhanced as frustrated
investors had waited a long time for the China assets to be unlocked. Investors
should now start to give LBS the benefit of the doubt and take a closer look at
its fundamentals. Secondly, the sale sets a benchmark for how to value the last
parcel of land in Zhuhai, which we believe is worth far more than the entire
market cap of LBS. Finally, the sale proceeds will give the group a significant
shot in the arm in terms of rewarding shareholders with annual special
dividends for the next five years. Finally, LBS will now have ammunition for
further land purchases in the domestic market and that can put the company
back on investors' radar screen.

4.2 Deep value property stock


LBS has finally started to re-rate but is still a long way off its underlying value.
Based only on the Malaysian operations, we get a fully diluted RNAV/share of
RM3.68. LBS is trading at a 74% discount to the RNAV of its Malaysian
operations, far wider than its bigger peers. Including the conservative RM741m
(RM1.92/share) value of the last parcel of land in China, LBS's RNAV jumps to
RM5.05. Applying a 50-100% premium to mixed development land in Zhuhai
to better approximate the value of commercial land will boost the RNAV by a
hefty RM1.1bn-1.5bn (RM2.85-RM3.88/share) to RM5.74-6.42.

Figure 12: Discount to RNAV and NTA


Share price

RNAV/shr

(Discount)/

NTA/shr

(Discount)/

(RM)

(RM)

Premium

(RM)

Premium

E&O

1.99

3.10

-35.8%

1.23

61.8%

Mah Sing

2.44

3.16

-22.8%

1.27

92.1%

SP Setia

3.34

3.99

-16.3%

2.12

57.5%

UEM Land

2.68

3.89

-31.1%

1.28

109.4%

UOA Dev

2.43

3.06

-20.6%

1.74

39.7%

0.88

51.1%

Average
LBS

-25.3%
1.33

5.05

-73.7%

72.1%
SOURCES: CIMB, COMPANY REPORTS

LBS Bina Group


August 1, 2013

In our last note in May 2012, we valued LBS at RM2.00 based on a 40%
discount to its RNAV. At that time, we had completely excluded the value of the
last parcel of land in China. Given that the sale of the first two parcels will be
concluded shortly, we believe the value of the third parcel should now be
included. Based on the same 40% discount to RNAV, wider than the maximum
30% discount used for developers under our coverage, LBS shares are worth
RM3.03. This provides investors an upside of 128%. If we assume the last
Zhuhai land is worth RM1.1bn-1.5bn, LBS will be worth a higher RM3.44-3.85.
Lastly, as LBS will recognise a one-off profit of RM309.3m from the sale of the
two parcels, reserves of the group will increase to RM388m, sufficient for the
company to propose a 1-for-1 bonus.

Figure 13: LBS Bina Group Bhd - RNAV


Eff.

Value

Area (sq. ft.)

(RM psf)

Price

Stake

(RM m)

221.0 ac

9,626,760

25.00

100.0%

240.7

48.0 ac

2,090,880

10.00

100.0%

20.9

Shah Alam, Selangor

150.0 ac

6,534,000

20.00

70.0%

91.5

Desiran Bayu

Puchong, Selangor

100.0 ac

4,356,000

10.00

100.0%

43.6

D'Island

Puchong, Selangor

115.0 ac

5,009,400

70.00

100.0%

350.7

Chemor Land

Mukim Hulu Kinta, Perak

374.4 ac

16,309,735

5.00

71.0%

57.9

Bandar Putera Indah

Batu Pahat, Johor

522.0 ac

22,738,320

5.00

100.0%

113.7

Zone A

Iskandar Malaysia, Johor

1.0 ac

43,560

650.00

100.0%

28.3

Mixed development

Ipoh, Perak

31.6 ac

1,375,625

15.00

100.0%

20.6

Bukit Cherakah

Mukim Bukit Raja, Daerah Petaling

58.4 ac

2,541,726

30.00

35.0%

26.7

The Centrum

Cameron Highlands

86.0 ac

3,746,160

30.00

100.0%

112.4

Tengkolok

Cameron Highlands

38.0 ac

1,655,280

35.00

100.0%

57.9

Kampung Raja

Cameron Highlands

30.0 ac

1,306,800

35.00

100.0%

45.7

Taman Golden Hill

Cameron Highlands

24.0 ac

1,045,440

35.00

100.0%

36.6

Taman Royal Lily

Cameron Highlands

9.0 ac

392,040

40.00

100.0%

15.7

Race track

Jingding Town, Zhuhai, China

264.0 ac

11,499,840

107.40

60.0%

741.0

Type

Location

Bandar Saujana Putra

Selangor

Taman Tasik Puchong

Puchong, Selangor

Taman Greenhill

Size/units

Proceeds from sale of 2 China properties

681.0

Investment property + associates

66.2

Net current assets less dev. prop.

217.3

Long term liabilities

(349.4)

Total RNAV

2,619.0

No. of shares (m)

395.3

RNAV per share (RM)

6.63

Warrants @ RM1

154.1

F. diluted RNAV per share (RM)

$5.05
SOURCES: CIMB, COMPANY REPORTS

LBS Bina Group


August 1, 2013

Figure 14: Sector Comparison


Company
Bukit Sembawang Estates
CapitaLand
CapitaMalls Asia
City Developments
Fraser & Neave
Global Logistic Properties
Ho Bee Investments
Keppel Land
Overseas Union Enterprise
Singapore Land
UOL Group
Wheelock Properties (S)
Wing Tai Holdings
Singapore average

Bloomberg
Ticker
BS SP
CAPL SP
CMA SP
CIT SP
FNN SP
GLP SP
HOBEE SP
KPLD SP
OUE SP
SL SP
UOL SP
WP SP
WINGT SP

Recom.
Outperform
Outperform
Outperform
Neutral
Outperform
Outperform
Outperform
Outperform
Outperform
Outperform
Outperform
Neutral
Underperform

Price
Tgt Px
(local curr) (local curr)
6.18
7.41
3.23
3.91
2.00
2.21
10.63
11.19
5.62
6.53
2.84
3.35
2.19
2.52
3.69
4.00
2.83
3.29
9.14
8.52
6.98
7.91
1.83
1.95
2.13
2.10

Mkt Cap
Core P/E (x)
RNAV Prem./(Disc.) P/BV (x) Div. Yield (%)
(US$ m) CY2013 CY2014 CY2013 to RNAV (%) CY2013
CY2013
13.1
13.1
10.58
-42%
1.40
2.7%
1,255
21.4
15.3
4.89
-34%
0.88
2.6%
10,791
27.9
23.3
2.46
-19%
1.14
1.8%
6,093
18.7
14.4
13.17
-19%
1.31
1.4%
7,585
14.4
11.5
7.60
-26%
1.01
3.2%
6,354
34.0
29.2
3.35
-15%
1.25
1.8%
10,606
9.8
9.8
3.09
-29%
0.86
2.3%
1,166
13.6
11.2
5.00
-26%
0.85
2.2%
4,476
27.4
22.5
4.11
-31%
0.87
1.8%
2,021
16.4
14.6
14.20
-36%
0.72
2.2%
2,958
14.3
13.1
9.89
-29%
0.83
1.7%
4,220
26.4
14.4
2.60
-30%
0.70
3.3%
1,718
7.4
7.4
2.80
-24%
0.76
4.0%
1,310
18.8
15.4
-28%
0.99
2.2%

Agile Property
China Overseas Grand Oceans
China Overseas Land
China Resources Land
Evergrande Real Estate
Franshion Properties
Guangzhou R&F
KWG Property Holding
Longfor Properties
Poly Property
Shimao Property
Shui On Land
Sino-Ocean Land
SOHO China
Yuexiu Property
China/Hong Kong average

3383 HK
81 HK
688 HK
1109 HK
3333 HK
817 HK
2777 HK
1813 HK
960 HK
119 HK
813 HK
272 HK
3377 HK
410 HK
123 HK

Outperform
Outperform
Outperform
Outperform
Neutral
Outperform
Neutral
Outperform
Outperform
Outperform
Outperform
Neutral
Neutral
Neutral
Outperform

8.15
9.21
22.35
21.30
3.08
2.48
12.06
4.45
11.86
4.21
16.34
2.32
3.97
6.35
1.96

9.95
13.25
25.65
26.50
3.10
3.18
11.98
6.62
15.60
7.15
20.45
2.94
4.95
6.45
2.49

3,623
2,710
23,553
16,010
6,366
2,930
5,011
1,660
8,321
1,978
7,317
2,394
3,006
3,952
2,353

4.5
7.6
9.6
13.1
4.9
8.1
5.5
4.3
8.9
5.8
7.5
14.6
6.1
8.2
9.0
8.2

4.0
5.6
8.2
10.0
3.9
6.2
5.0
3.8
7.5
5.0
5.7
12.2
5.2
16.9
6.9
6.9

19.90
15.59
0.00
29.41
9.03
5.31
19.97
11.04
22.35
11.91
29.51
5.87
9.91
9.99
4.97

-59%
-41%
na
-28%
-66%
-53%
-40%
-60%
-47%
-65%
-45%
-61%
-60%
-36%
-61%
-47%

0.77
2.01
1.78
1.64
0.78
0.73
1.01
0.60
1.47
0.53
1.14
0.42
0.44
0.79
0.63
1.09

5.1%
1.3%
2.1%
2.1%
0.0%
2.6%
6.3%
6.1%
2.3%
5.2%
4.3%
2.4%
6.4%
4.9%
3.9%
2.8%

Alam Sutera
Bekasi Fajar
Bumi Serpong Damai
Ciputra Development
Ciputra Property
Lippo Karawaci
Metropolitan Land
Summarecon Agung
Surya Semesta Internusa
Indonesia average

ASRI IJ
BEST IJ
BSDE IJ
CTRA IJ
CTRP IJ
LPKR IJ
MTLA IJ
SMRA IJ
SSIA IJ

Outperform
Neutral
Neutral
Outperform
Outperform
Outperform
Outperform
Outperform
Outperform

700
610
1,580
1,150
920
1,280
480
1,000
940

1,050
720
1,600
1,700
1,250
1,850
700
1,300
1,700

1,341
573
2,695
1,700
552
2,880
355
1,407
431

7.4
5.5
13.6
15.1
9.2
15.1
13.5
12.3
4.7
11.1

5.9
4.6
13.4
13.6
7.1
16.1
9.2
10.3
4.2
9.9

2,185
na
2,677
2,147
2,749
2,249
1,198
2,123
1,705

-68%
na
-41%
-46%
-67%
-43%
-60%
-53%
-45%
na

2.26
2.21
2.85
2.72
1.30
2.38
2.08
3.16
1.88
2.44

3.9%
2.8%
0.9%
1.0%
1.6%
1.1%
1.1%
1.7%
3.7%
1.6%

Eastern & Oriental


KLCC Property Holdings
Mah Sing Group
SP Setia
UEM Sunrise Bhd
UOA Development
Malaysia average

EAST MK
KLCCSS MK
MSGB MK
SPSB MK
UEMS MK
UOAD MK

Outperform
Outperform
Outperform
Neutral
Outperform
Outperform

1.99
6.56
2.44
3.34
2.68
2.43

2.48
8.00
3.48
3.59
4.28
2.76

679
3,651
1,021
2,531
3,593
952

15.0
19.6
11.5
16.8
21.2
9.0
16.7

12.7
18.7
9.6
15.3
18.8
7.8
14.9

3.10
6.42
3.16
3.99
3.89
3.16

-36%
2%
-23%
-16%
-31%
-23%
-16%

1.53
1.61
1.85
1.55
2.04
1.36
1.69

2.0%
4.8%
3.5%
3.1%
1.5%
5.3%
3.3%

Amata Corporation
Ananda Development
AP (Thailand) PCL
Hemaraj
Land And Houses
LPN Development
Pruksa Real Estate
Quality Houses
Sansiri Public Co
Supalai PCL
Thailand average

AMATA TB
ANAN TB
AP TB
HEMRAJ TB
LH TB
LPN TB
PS TB
QH TB
SIRI TB
SPALI TB

Outperform
Outperform
Neutral
Outperform
Outperform
Outperform
Outperform
Outperform
Outperform
Neutral

16.90
2.56
5.85
3.30
10.10
21.30
18.80
2.72
2.68
15.50

32.20
4.90
9.03
4.14
9.19
30.63
40.22
5.38
5.88
20.31

575
272
533
1,021
3,229
1,002
1,332
797
815
848

9.2
6.0
7.1
11.3
23.0
11.2
7.9
9.7
6.8
8.3
10.7

7.9
4.7
5.5
10.4
19.0
9.7
7.0
7.6
5.4
7.2
8.9

21.77
2.26
7.00
2.80
6.00
7.40
12.54
3.60
2.48
9.05

-22%
13%
-16%
18%
68%
188%
50%
-24%
8%
71%
35%

1.80
1.28
1.17
2.85
3.26
3.13
1.72
1.46
1.38
1.77
2.05

4.4%
0.0%
5.6%
4.2%
4.5%
4.4%
3.8%
5.5%
7.3%
4.8%
4.7%

SOBHA IN
OBER IN
UT IN
DLFU IN

Outperform
Outperform
Underperform
Underperform

289.0
200.9
16.45
149.8

460.0
285.0
20.00
190.0

469
1,092
712
4,418

10.8
11.7
13.5
26.4
18.7

8.3
9.8
9.1
19.0
14.0

na
na
na
na

na
na
na
na
na

1.15
1.46
0.37
0.90
0.84

1.2%
1.4%
0.0%
1.3%
1.2%

ALI PM

Outperform

30.10

25.70

9,817

40.7
40.7

35.6
35.6

na

na
na

4.89
4.89

1.0%
1.0%

11.6

9.8

NA

1.18

2.5%

Sobha Developers Ltd


Oberoi Realty Ltd
Unitech Ltd
DLF Ltd
India average
Ayala Land Inc.
Philippine average
Average (all)

SOURCES: CIMB, BLOOMBERG, COMPANY REPORTS

LBS Bina Group


August 1, 2013

DISCLAIMER
This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where
such distribution, publication, availability or use would be contrary to law or regulation.
By accepting this report, the recipient hereof represents and warrants that he is entitled to receive such report in accordance with the restrictions set forth below and agrees to be bound
by the limitations contained herein (including the Restrictions on Distributions set out below). Any failure to comply with these limitations may constitute a violation of law. This
publication is being supplied to you strictly on the basis that it will remain confidential. No part of this report may be (i) copied, photocopied, duplicated, stored or reproduced in any form
by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB.
Unless otherwise specified, this report is based upon sources which CIMB considers to be reasonable. Such sources will, unless otherwise specified, for market data, be market data
and prices available from the main stock exchange or market where the relevant security is listed, or, where appropriate, any other market. Information on the accounts and business
of company(ies) will generally be based on published statements of the company(ies), information disseminated by regulatory information services, other publicly available information
and information resulting from our research.
Whilst every effort is made to ensure that statements of facts made in this report are accurate, all estimates, projections, forecasts, expressions of opinion and other subjective
judgments contained in this report are based on assumptions considered to be reasonable as of the date of the document in which they are contained and must not be construed as a
representation that the matters referred to therein will occur. Past performance is not a reliable indicator of future performance. The value of investments may go down as well as up
and those investing may, depending on the investments in question, lose more than the initial investment. No report shall constitute an offer or an invitation by or on behalf of CIMB or
its affiliates to any person to buy or sell any investments.
CIMB, its affiliates and related companies, their directors, associates, connected parties and/or employees may own or have positions in securities of the company(ies) covered in this
research report or any securities related thereto and may from time to time add to or dispose of, or may be materially interested in, any such securities. Further, CIMB, its affiliates and
its related companies do and seek to do business with the company(ies) covered in this research report and may from time to time act as market maker or have assumed an underwriting
commitment in securities of such company(ies), may sell them to or buy them from customers on a principal basis and may also perform or seek to perform significant investment
banking, advisory, underwriting or placement services for or relating to such company(ies) as well as solicit such investment, advisory or other services from any entity mentioned in
this report.
CIMB or its affiliates may enter into an agreement with the company(ies) covered in this report relating to the production of research reports. CIMB may disclose the contents of this
report to the company(ies) covered by it and may have amended the contents of this report following such disclosure.
The analyst responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views and opinions about
any and all of the issuers or securities analysed in this report and were prepared independently and autonomously. No part of the compensation of the analyst(s) was, is, or will be
directly or indirectly related to the inclusion of specific recommendations(s) or view(s) in this report. CIMB prohibits the analyst(s) who prepared this research report from receiving any
compensation, incentive or bonus based on specific investment banking transactions or for providing a specific recommendation for, or view of, a particular company. Information
barriers and other arrangements may be established where necessary to prevent conflicts of interests arising. However, the analyst(s) may receive compensation that is based on
his/their coverage of company(ies) in the performance of his/their duties or the performance of his/their recommendations and the research personnel involved in the preparation of this
report may also participate in the solicitation of the businesses as described above. In reviewing this research report, an investor should be aware that any or all of the foregoing, among
other things, may give rise to real or potential conflicts of interest. Additional information is, subject to the duties of confidentiality, available on request.
Reports relating to a specific geographical area are produced by the corresponding CIMB entity as listed in the table below. The term CIMB shall denote, where appropriate, the
relevant entity distributing or disseminating the report in the particular jurisdiction referenced below, or, in every other case, CIMB Group Holdings Berhad ("CIMBGH") and its affiliates,
subsidiaries and related companies.
Country
Australia
Hong Kong
Indonesia
India
Malaysia
Singapore
South Korea
Taiwan
Thailand

CIMB Entity
CIMB Securities (Australia) Limited
CIMB Securities Limited
PT CIMB Securities Indonesia
CIMB Securities (India) Private Limited
CIMB Investment Bank Berhad
CIMB Research Pte. Ltd.
CIMB Securities Limited, Korea Branch
CIMB Securities Limited, Taiwan Branch
CIMB Securities (Thailand) Co. Ltd.

Regulated by
Australian Securities & Investments Commission
Securities and Futures Commission Hong Kong
Financial Services Authority of Indonesia
Securities and Exchange Board of India (SEBI)
Securities Commission Malaysia
Monetary Authority of Singapore
Financial Services Commission and Financial Supervisory Service
Financial Supervisory Commission
Securities and Exchange Commission Thailand

(i) As of July 31, 2013 CIMB has a proprietary position in the securities (which may include but not limited to shares, warrants, call warrants and/or any other derivatives) in the following
company or companies covered or recommended in this report:
(a) Agile Property, Amata Corporation, AVJennings, Bukit Sembawang Estates, CapitaLand, CapitaMalls Asia, City Developments, Eastern & Oriental, Fraser & Neave, Keppel Land,
KLCC Property Holdings, Longfor Properties, Mah Sing Group, Poly Property, Shimao Property, Shui On Land, Sino-Ocean Land, SOHO China, SP Setia, UEM Sunrise Bhd, United
Engineers, UOA Development, UOL Group, Wheelock Properties (S)
(ii) As of August 1, 2013, the analyst(s) who prepared this report, has / have an interest in the securities (which may include but not limited to shares, warrants, call warrants and/or any
other derivatives) in the following company or companies covered or recommended in this report:
(a) The information contained in this research report is prepared from data believed to be correct and reliable at the time of issue of this report. CIMB may or may not issue regular reports
on the subject matter of this report at any frequency and may cease to do so or change the periodicity of reports at any time. CIMB is under no obligation to update this report in the
event of a material change to the information contained in this report. This report does not purport to contain all the information that a prospective investor may require. CIMB or any of
its affiliates does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and
opinion contained in this report. Neither CIMB nor any of its affiliates nor its related persons shall be liable in any manner whatsoever for any consequences (including but not limited
to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.
This report is general in nature and has been prepared for information purposes only. It is intended for circulation amongst CIMB and its affiliates clients generally and does not have
regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. The information and opinions in this report are
not and should not be construed or considered as an offer, recommendation or solicitation to buy or sell the subject securities, related investments or other financial instruments thereof.
Investors are advised to make their own independent evaluation of the information contained in this research report, consider their own individual investment objectives, financial
situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects before participating in any transaction
in respect of the securities of company(ies) covered in this research report. The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of
investors.
Australia: Despite anything in this report to the contrary, this research is provided in Australia by CIMB Securities (Australia) Limited (CSAL) (ABN 84 002 768 701, AFS Licence
number 240 530). CSAL is a Market Participant of ASX Ltd, a Clearing Participant of ASX Clear Pty Ltd, a Settlement Participant of ASX Settlement Pty Ltd, and, a participant of Chi X
Australia Pty Ltd. This research is only available in Australia to persons who are wholesale clients (within the meaning of the Corporations Act 2001 (Cth)) and is supplied solely for
the use of such wholesale clients and shall not be distributed or passed on to any other person. This research has been prepared without taking into account the objectives, financial
situation or needs of the individual recipient.
France: Only qualified investors within the meaning of French law shall have access to this report. This report shall not be considered as an offer to subscribe to, or used in connection
with, any offer for subscription or sale or marketing or direct or indirect distribution of financial instruments and it is not intended as a solicitation for the purchase of any financial
10

LBS Bina Group


August 1, 2013

instrument.
Hong Kong: This report is issued and distributed in Hong Kong by CIMB Securities Limited (CHK) which is licensed in Hong Kong by the Securities and Futures Commission for Type
1 (dealing in securities), Type 4 (advising on securities) and Type 6 (advising on corporate finance) activities. Any investors wishing to purchase or otherwise deal in the securities
covered in this report should contact the Head of Sales at CIMB Securities Limited. The views and opinions in this research report are our own as of the date hereof and are subject to
change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to such recipient
therein are unaffected. CHK has no obligation to update its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only to clients of CHK. This publication is being supplied to you strictly on the basis that it will remain confidential. No
part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person
in whole or in part, for any purpose without the prior written consent of CHK. Unless permitted to do so by the securities laws of Hong Kong, no person may issue or have in its
possession for the purposes of issue, whether in Hong Kong or elsewhere, any advertisement, invitation or document relating to the securities covered in this report, which is directed at,
or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong).
India: This report is issued and distributed in India by CIMB Securities (India) Private Limited (CIMB India) which is registered with SEBI as a stock-broker under the Securities and
Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992 and in accordance with the provisions of Regulation 4 (g) of the Securities and Exchange Board of India
(Investment Advisers) Regulations, 2013, CIMB India is not required to seek registration with SEBI as an Investment Adviser.
The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of CIMB India and they have
received compensation based upon various factors, including quality, accuracy and value of research, firm profitability or revenues, client feedback and competitive factors. Research
analysts', strategists' or economists' compensation is not linked to investment banking or capital markets transactions performed or proposed to be performed by CIMB India or its
affiliates.
Indonesia: This report is issued and distributed by PT CIMB Securities Indonesia (CIMBI). The views and opinions in this research report are our own as of the date hereof and are
subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to such
recipient therein are unaffected. CIMBI has no obligation to update its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only to clients of CIMBI. This publication is being supplied to you strictly on the basis that it will remain confidential. No
part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person
in whole or in part, for any purpose without the prior written consent of CIMBI. Neither this report nor any copy hereof may be distributed in Indonesia or to any Indonesian citizens
wherever they are domiciled or to Indonesia residents except in compliance with applicable Indonesian capital market laws and regulations.
Malaysia: This report is issued and distributed by CIMB Investment Bank Berhad (CIMB). The views and opinions in this research report are our own as of the date hereof and are
subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to such
recipient therein are unaffected. CIMB has no obligation to update its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only to clients of CIMB. This publication is being supplied to you strictly on the basis that it will remain confidential. No
part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person
in whole or in part, for any purpose without the prior written consent of CIMB.
New Zealand: In New Zealand, this report is for distribution only to persons whose principal business is the investment of money or who, in the course of, and for the purposes of their
business, habitually invest money pursuant to Section 3(2)(a)(ii) of the Securities Act 1978.
Singapore: This report is issued and distributed by CIMB Research Pte Ltd (CIMBR). Recipients of this report are to contact CIMBR in Singapore in respect of any matters arising
from, or in connection with, this report. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial Services and Markets
Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CIMBR has no obligation to
update its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only. If the recipient of this research report is not an accredited investor, expert investor or institutional investor,
CIMBR accepts legal responsibility for the contents of the report without any disclaimer limiting or otherwise curtailing such legal responsibility. This publication is being supplied to you
strictly on the basis that it will remain confidential. No part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed
or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMBR..
As of July 31, 2013, CIMBR does not have a proprietary position in the recommended securities in this report.
South Korea: This report is issued and distributed in South Korea by CIMB Securities Limited, Korea Branch ("CIMB Korea") which is licensed as a cash equity broker, and regulated
by the Financial Services Commission and Financial Supervisory Service of Korea.
The views and opinions in this research report are our own as of the date hereof and are subject to change, and this report shall not be considered as an offer to subscribe to, or used
in connection with, any offer for subscription or sale or marketing or direct or indirect distribution of financial investment instruments and it is not intended as a solicitation for the
purchase of any financial investment instrument.
This publication is strictly confidential and is for private circulation only, and no part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any
means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of CIMB Korea.
Sweden: This report contains only marketing information and has not been approved by the Swedish Financial Supervisory Authority. The distribution of this report is not an offer to sell
to any person in Sweden or a solicitation to any person in Sweden to buy any instruments described herein and may not be forwarded to the public in Sweden.
Taiwan: This research report is not an offer or marketing of foreign securities in Taiwan. The securities as referred to in this research report have not been and will not be registered with
the Financial Supervisory Commission of the Republic of China pursuant to relevant securities laws and regulations and may not be offered or sold within the Republic of China through
a public offering or in circumstances which constitutes an offer or a placement within the meaning of the Securities and Exchange Law of the Republic of China that requires a
registration or approval of the Financial Supervisory Commission of the Republic of China.
Thailand: This report is issued and distributed by CIMB Securities (Thailand) Company Limited (CIMBS). The views and opinions in this research report are our own as of the date
hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Services Authority apply to a recipient, our obligations
owed to such recipient therein are unaffected. CIMBS has no obligation to update its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only to clients of CIMBS. This publication is being supplied to you strictly on the basis that it will remain confidential. No
part of this material may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person
in whole or in part, for any purpose without the prior written consent of CIMBS.
Corporate Governance Report:
The disclosure of the survey result of the Thai Institute of Directors Association (IOD) regarding corporate governance is made pursuant to the policy of the Office of the Securities and
Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed
to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on
inside information.
The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CIMBS does
not confirm nor certify the accuracy of such survey result.
Score Range:
90 100
80 89
70 79
Below 70 or
No Survey Result
Description:
Excellent
Very Good
Good
N/A
United Arab Emirates: The distributor of this report has not been approved or licensed by the UAE Central Bank or any other relevant licensing authorities or governmental agencies
in the United Arab Emirates. This report is strictly private and confidential and has not been reviewed by, deposited or registered with UAE Central Bank or any other licensing authority
or governmental agencies in the United Arab Emirates. This report is being issued outside the United Arab Emirates to a limited number of institutional investors and must not be
provided to any person other than the original recipient and may not be reproduced or used for any other purpose. Further, the information contained in this report is not intended to lead
to the sale of investments under any subscription agreement or the conclusion of any other contract of whatsoever nature within the territory of the United Arab Emirates.
11

LBS Bina Group


August 1, 2013

United Kingdom and Europe: In the United Kingdom and European Economic Area, this report is being disseminated by CIMB Securities (UK) Limited (CIMB UK). CIMB UK is
authorised and regulated by the Financial Services Authority and its registered office is at 27 Knightsbridge, London, SW1X 7YB. This report is for distribution only to, and is solely
directed at, selected persons on the basis that those persons: (a) are persons that are eligible counterparties and professional clients of CIMB UK; (b) have professional experience in
matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the Order); (c) are persons
falling within Article 49 (2) (a) to (d) (high net worth companies, unincorporated associations etc) of the Order; (d) are outside the United Kingdom; or (e) are persons to whom an
invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with any investments to which
this report relates may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as relevant persons). This report is directed
only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this report relates is available
only to relevant persons and will be engaged in only with relevant persons.
Only where this report is labelled as non-independent, it does not provide an impartial or objective assessment of the subject matter and does not constitute independent "investment
research" under the applicable rules of the Financial Services Authority in the UK. Consequently, any such non-independent report will not have been prepared in accordance with
legal requirements designed to promote the independence of investment research and will not subject to any prohibition on dealing ahead of the dissemination of investment research.
United States: This research report is distributed in the United States of America by CIMB Securities (USA) Inc, a U.S.-registered broker-dealer and a related company of CIMB
Research Pte Ltd, CIMB Investment Bank Berhad, PT CIMB Securities Indonesia, CIMB Securities (Thailand) Co. Ltd, CIMB Securities Limited, CIMB Securities (Australia) Limited,
CIMB Securities (India) Private Limited,and is distributed solely to persons who qualify as "U.S. Institutional Investors" as defined in Rule 15a-6 under the Securities and Exchange Act
of 1934. This communication is only for Institutional Investors whose ordinary business activities involve investing in shares, bonds and associated securities and/or derivative securities
and who have professional experience in such investments. Any person who is not a U.S. Institutional Investor or Major Institutional Investor must not rely on this communication. The
delivery of this research report to any person in the United States of America is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement
of any opinion expressed herein. CIMB Securities (USA) Inc, is a FINRA/SIPC member and takes responsibility for the content of this report. For further information or to place an order
in any of the above-mentioned securities please contact a registered representative of CIMB Securities (USA) Inc.
Other jurisdictions: In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is only for distribution to professional, institutional or sophisticated
investors as defined in the laws and regulations of such jurisdictions.

Recommendation Framework #1 *
Stock
Sector
OUTPERFORM: The stock's total return is expected to exceed a relevant
OVERWEIGHT: The industry, as defined by the analyst's coverage universe, is
benchmark's total return by 5% or more over the next 12 months.
expected to outperform the relevant primary market index over the next 12 months.
NEUTRAL: The stock's total return is expected to be within +/-5% of a relevant
NEUTRAL: The industry, as defined by the analyst's coverage universe, is expected
benchmark's total return.
to perform in line with the relevant primary market index over the next 12 months.
UNDERPERFORM: The stock's total return is expected to be below a relevant
UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is
benchmark's total return by 5% or more over the next 12 months.
expected to underperform the relevant primary market index over the next 12 months.
TRADING BUY: The stock's total return is expected to exceed a relevant
TRADING BUY: The industry, as defined by the analyst's coverage universe, is
benchmark's total return by 5% or more over the next 3 months.
expected to outperform the relevant primary market index over the next 3 months.
TRADING SELL: The stock's total return is expected to be below a relevant
TRADING SELL: The industry, as defined by the analyst's coverage universe, is
benchmark's total return by 5% or more over the next 3 months.
expected to underperform the relevant primary market index over the next 3 months.
* This framework only applies to stocks listed on the Singapore Stock Exchange, Bursa Malaysia, Stock Exchange of Thailand, Jakarta Stock Exchange, Australian Securities
Exchange, Taiwan Stock Exchange and National Stock Exchange of India/Bombay Stock Exchange. Occasionally, it is permitted for the total expected returns to be temporarily outside
the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.
CIMB Research Pte Ltd (Co. Reg. No. 198701620M)

Recommendation Framework #2 **
Stock
Sector
OUTPERFORM: Expected positive total returns of 10% or more over the next 12
OVERWEIGHT: The industry, as defined by the analyst's coverage universe, has a
months.
high number of stocks that are expected to have total returns of +10% or better over
the next 12 months.
NEUTRAL: Expected total returns of between -10% and +10% over the next 12
NEUTRAL: The industry, as defined by the analyst's coverage universe, has either (i)
months.
an equal number of stocks that are expected to have total returns of +10% (or better)
or -10% (or worse), or (ii) stocks that are predominantly expected to have total returns
that will range from +10% to -10%; both over the next 12 months.
UNDERPERFORM: Expected negative total returns of 10% or more over the next 12
UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, has a
months.
high number of stocks that are expected to have total returns of -10% or worse over
the next 12 months.
TRADING BUY: Expected positive total returns of 10% or more over the next 3
TRADING BUY: The industry, as defined by the analyst's coverage universe, has a
months.
high number of stocks that are expected to have total returns of +10% or better over
the next 3 months.
TRADING SELL: Expected negative total returns of 10% or more over the next 3
TRADING SELL: The industry, as defined by the analyst's coverage universe, has a
months.
high number of stocks that are expected to have total returns of -10% or worse over
the next 3 months.
** This framework only applies to stocks listed on the Korea Exchange, Hong Kong Stock Exchange and China listings on the Singapore Stock Exchange. Occasionally, it is permitted
for the total expected returns to be temporarily outside the prescribed ranges due to extreme market volatility or other justifiable company or industry-specific reasons.
Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2012.
AAV not available, ADVANC - Excellent, AEONTS Good, AMATA - Very Good, ANAN not available, AOT - Excellent, AP - Very Good, BANPU - Excellent , BAY - Excellent , BBL
- Excellent, BCH not available, BCP - Excellent, BEC - Very Good, BGH - not available, BJC Very Good, BH - Very Good, BIGC - Very Good, BTS - Excellent, CCET - Good,
CENTEL Very Good, CK - Very Good, CPALL - Very Good, CPF - Very Good, CPN - Excellent, DELTA - Very Good, DTAC - Very Good, EGCO Excellent, ERW Excellent,
GLOBAL - Good, GLOW - Very Good, GRAMMY Excellent, HANA - Very Good, HEMRAJ - Excellent, HMPRO - Very Good, INTUCH Very Good, ITD Very Good, IVL - Very
Good, JAS Very Good, KAMART not available, KBANK - Excellent, KK Excellent, KTB - Excellent, LH - Very Good, LPN - Excellent, MAJOR - Good, MAKRO Very Good,
MCOT - Excellent, MINT - Very Good, PS - Excellent, PSL - Excellent, PTT - Excellent, PTTGC - Excellent, PTTEP - Excellent, QH - Excellent, RATCH - Excellent, ROBINS - Excellent,
RS Excellent, SAMART Excellent, SC Excellent, SCB - Excellent, SCC - Excellent, SCCC - Very Good, SIRI - Good, SPALI - Very Good, SRICHA not available, SSI not
available, STA - Good, STEC - Very Good, TCAP - Very Good, THAI - Excellent, THCOM Very Good, TICON Very Good, TISCO - Excellent, TMB - Excellent, TOP - Excellent,
TRUE - Very Good, TTW Very Good, TUF - Very Good, VGI not available, WORK Good.

12

LBS Bina Group


August 1, 2013

13