UOBKayHian

Singapore Daily
Thursday, May 26, 2011
KEY HIGHLIGHTS
Update DBS Group Holdings (BUY/S$14.62/Target: S$19.65) Enlarging its footprint in North Asia. Singapore Airlines (HOLD/S$14.20/Target: S$15.00) Revolutionary change as airline goes budget. AT A GLANCE Corporate Page 8 Chasen Holdings: FY11 earnings lifted by fair value gain. China Print Power: Reduces controlling stake. Informatics: FY11 net profit falls 35%. Pacific Andes: Approval for Taiwan listing. TMC: Warns of loss. Think Environmental Company: Shifting towards gold mining. Sector Property: S$969m top bid for Boon Lay Way site. Property: Non-landed luxury home prices steady. Page 8
Key Indices
Prev Close DJIA S&P 500 FTSE 100 AS30 CSI 300 FSSTI HSCEI HSI JCI KLCI KOSPI Nikkei 225 SET TWSE 12394.7 1320.5 5870.1 4661.6 2990.3 3118.7 12689.7 22747.3 3780.2 1533.6 2035.9 9422.9 1055.5 8727.1 1D % 0.3 0.3 0.2 (1.0) (1.2) 0.2 0.1 0.1 (0.2) 0.1 (1.3) (0.6) (0.8) (0.3) 3.4 0.4 (0.2) 1W % (1.3) (1.5) (0.9) (2.2) (4.7) (0.7) (1.4) (1.1) (1.6) (0.5) (4.7) (2.5) (1.9) (2.4) 13.8 1.2 2.8 1M % YTD % (0.7) (1.1) (2.5) (6.7) (7.4) (1.7) (6.4) (5.2) 0.1 0.4 (7.7) (1.4) (3.8) (2.5) 15.3 1.1 (9.8) 7.1 5.0 (0.5) (3.8) (4.4) (2.2) (0.0) (1.3) 2.1 1.0 (0.7) (7.9) 2.2 (2.7) (18.4) (9.0) 10.7

Page 2 Page 5

BDI 1446 CPO (RM/mt) 3421 Nymex Crude (US$/bbl) 101 Source: Bloomberg

Top Volume
Stock Golden Agri-Resources Ltd Allgreen Properties Ltd Genting Singapore Plc Indofood Agri Resources Ltd Yangzijiang Shipbuilding Price (S$) 0.69 1.61 2.01 1.71 1.65 Chg (%) 1.5 1.3 0.5 (2.3) 1.2 Volume (000) 88,931 80,410 55,171 28,893 17,458

Top Gainers
Stock Sinarmas Land Limited Stats Chippac Ltd Osim International Ltd K-Reit Asia Golden Agri-Resources Ltd Price (S$) 0.33 0.71 1.68 1.30 0.69 Chg (%) 3.2 2.2 1.8 1.6 1.5 Volume (000) 203 167 1,047 749 88,931

Top Losers
Stock China Fishery Group Ltd Fragrance Group Ltd Hi-P International Ltd Wbl Corp Ltd Indofood Agri Resources Ltd Price (S$) 1.54 0.64 1.08 3.68 1.71 Chg (%) (7.2) (5.2) (2.7) (2.6) (2.3) Volume (000) 1,011 3,049 647 306 28,893

Note: Based on top 100 stocks by market capitalisation

Key Assumptions
2010 GDP (% yoy) US EU Japan Singapore Malaysia Thailand Indonesia Hong Kong China Brent Crude Oil (US$/bbl) Aluminium * (US$/mt) Copper * (US$/mt) Gold Price London * (US$/ounce) Iron Ore * (USc/dmtu) CPO (US$/mt) BDI *Bloomberg Source: UOB, UOB Kay Hian 2.8 1.8 4.0 14.5 7.2 7.8 6.1 6.8 10.3 83 2,173 7,543 1,232 179 840 2,758 2011F 3.1 1.7 1.3 5.7 5.6 4.0 6.4 5.0 9.2 95 2,415 9,335 1,457 134 980 1,700 2012F 3.2 1.7 2.0 5.0 5.4 4.5 6.3 4.3 8.6 98 2,464 9,544 1,462 134 900 2,000

Refer to last page for important disclosures.

Page 1 of 9

Singapore Daily
Thursday, May 26, 2011

DBS Group Holdings Singapore

Enlarging its footprint in North Asia
Whats New DBS aims to become a leading Asian bank and has the largest footprint in North Asia among the three local banks. Accelerated expansion in Taiwan via acquisition. DBS took over 40 branches in Taiwan after acquiring good bank assets of Bowa Bank in May 08. DBS Taiwan was rebranded and it renovated the branch network and turned profitable in 2009. DBS Taiwan is among the topfive foreign banks in Taiwan and it targets to be a top-3 player by 2015. DBS Taiwan opened its Taiwan HQ covering three storeys at Shin Kong Xinyi Financial Center within Taipeis financial district in May 11, an indication of its long-term commitment in Taiwan. DBS currently operates through its branch presence in Taiwan. DBS has applied to convert DBS Taiwan into a locally incorporated subsidiary, a separate legal entity with its own capital base. It plans to inject additional capital to increase DBS Taiwans capital base from NT$12b to NT$22b. DBS Taiwan will focus on SME and wealth management businesses. Growth has accelerated with contribution for pre-tax profit from DBS Taiwan doubling to NT$592m or S$25.4m. Progressive organic expansion in China. DBS China has 17 main and sub-branches in nine major cities and plans to expand to 50 outlets by 2013. It doubled its deposit base in 2010, thus lowering its loan/deposit ratio to below 75% as required by regulators. Corporate customers and some high net worth customers contributed to the bulk of increase in deposits. DBS China expanded its customer base by more than 40% to 30,000 last year. DBS China officially opened its HQ building in Shanghai in Feb 10. It occupies five floors at DBS Bank Tower (143,000sf). Greater China operations, encompassing businesses in China and Taiwan, reported a 36.8% yoy increase in net interest income to S$104m in 1Q11. Non-interest income expanded 19.4% yoy to S$37m.

BUY
(Maintained)

Company Update
Share Price Target Price Upside S$14.62 S$19.65 +34.4%

Company Description
DBS is a pan-Asian banking group with a significant presence in Singapore and Hong Kong. It also has operations in India, Indonesia, Taiwan and China.

Stock Data
GICS sector Bloomberg ticker: Shares issued (m): Market cap (S$m): Market cap (US$m): 3-mth avg daily t'over (US$m): Financials DBS SP 2,309.4 33,764.1 27,095.8 56.7

Price Performance (%)

52-week high/low 1mth 3mth (2.1) 3.0 6mth 6.7 S$15.18/S$13.26 1yr YTD 7.5 2.1 % 27.9 12.01 14.07

Major Shareholders
Temasek Holdings FY11 NAV/Share (S$) FY11 CAR Tier-1 (%)

Price Chart
(lcy) 16.00 15.00 14.00 100 13.00 90 12.00 11.00 10.00
20 DBS GROUP HOLDINGS LTD Dbs Group Holdings Ltd/FSSTI Index

(%) 120

110

80 70

Key Financials
Year to 31 Dec (S$m) Net interest income Non-interest income Net profit (rep./act.) Net profit (adj.) EPS (S$ cent) PE (x) P/B (x) Dividend yield (%) Net int margin (%) Cost/income (%) Loan loss cover (%) Consensus net profit UOBKH/Consensus (x) 2009 4,455.0 2,148.0 2,041.0 1,944.0 83.9 17.4 1.3 3.8 2.0 39.4 83.0 2010 4,318.0 2,748.0 1,632.0 2,650.0 114.2 12.8 1.3 3.8 1.9 41.4 110.3 2011F 4,594.3 2,883.4 3,029.6 3,029.6 129.9 11.3 1.2 3.8 1.9 44.2 124.5 2,943.8 1.03 2012F 5,177.1 2,918.5 3,268.6 3,268.6 140.3 10.4 1.1 3.8 1.9 45.3 133.1 3,330.6 0.98 2013F 5,416.2 3,042.3 3,423.5 3,423.5 147.0 9.9 1.1 3.8 1.9 45.1 142.5 3,826.3 0.89

15 10 5 0

Volume (m)

May 10

Jul 10

Sep 10

Nov 10

Jan 11

Mar 11

May 11

Source: Bloomberg

Analyst
Jonathan Koh, CFA +65 6590 6620 jonathankoh@uobkayhian.com

Source: DBS Group Holdings, Bloomberg, UOB Kay Hian

Refer to last page for important disclosures.

Page 2 of 9

Singapore Daily
Thursday, May 26, 2011
Stock Impact DBS plans to achieve a 40:30:30 revenue mix for Singapore, Greater China and South & Southeast Asia (63:27:10 in 2010) in five years. DBS has demonstrated excellence in execution since new CEO Piyush Gupta took over the helm. The same is seen in organic growth of its Greater China operations, including Taiwan and China. Maintain BUY. Operationally, we see DBS as more tightly knit and cohesive. DBS has also reported an impressive set of results for 1Q11 with broad-based growth in fee income, growth momentum in treasury business and stringent cost control.
Total Income By Region (1Q11)
South & Southeast Asia 6.9% Rest of the World 4.2%

Rest of Greater China 7.4%

Hong Kong 20.4%

Singapore 61.1%

Source: DBS

Earnings Revision/Risk Our earnings forecasts are unchanged. Valuation/Recommendation Our target price is S$19.65, or P/B of 1.64x, using the Gordon Growth Model (ROE: 11.0%, required return: 8.2% and constant growth: 3.8%). Share Price Catalyst DBS plans to deploy surplus deposits in Singapore to expand consumer and SME businesses, which will bolster its loan growth and net interest margin. DBS will implement a new retail branch model to improve sellthrough of products and services. Higher interest rates will give DBS a huge boost due to its significant exposure to interbank lending and a huge base of low-cost current and savings accounts.

Loans By Region (1Q11)

South & Southeast Asia 9.6% Rest of Greater China 8.9% Hong Kong 22.8% Rest of the World 10.0%

Singapore 48.6%

Source: DBS

Overseas Operations As % Of Total Income

(%) 44 42

Net Interest Income Rest Of Greater China

(S$m) 120 100 80 60 40 20 0 1Q06
Source: DBS

40

Acquisition of "good bank assets" from Bowa Bank

38 36 34 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11

Source: DBS, UOB Kay Hian

1Q07

1Q08

1Q09

1Q10

1Q11

Non-Interest Income Rest Of Greater China

(S$m) 60 50 40 30 20 10 0 1Q06
Source: DBS

1Q07

1Q08

1Q09

1Q10

1Q11

Refer to last page for important disclosures.

Page 3 of 9

Singapore Daily
Thursday, May 26, 2011
Profit & Loss
Year to 31 Dec (S$m) Interest income Interest expense Net interest income Fees & commissions Other income Non-interest income Total income Staff costs Other operating expense Pre-provision profit Loan loss provision Other provisions Associated companies Pre-tax profit Tax Minorities Net profit Net profit (adj.) 2010 5,699.0 (1,381.0) 4,318.0 1,397.0 1,351.0 2,748.0 7,066.0 (1,422.0) (1,503.0) 4,141.0 (846.0) (1,083.0) 102.0 2,314.0 (454.0) (228.0) 1,632.0 2,650.0 2011F 6,118.8 (1,524.5) 4,594.3 1,632.4 1,251.0 2,883.4 7,477.8 (1,658.0) (1,649.8) 4,170.0 (282.4) (30.0) 99.0 3,956.6 (636.7) (290.3) 3,029.6 3,029.6 2012F 7,126.6 (1,949.5) 5,177.1 1,728.5 1,190.0 2,918.5 8,095.6 (1,821.5) (1,843.1) 4,431.0 (267.9) 0.0 100.0 4,263.1 (724.7) (269.8) 3,268.6 3,268.6 2013F 7,682.2 (2,266.0) 5,416.2 1,852.3 1,190.0 3,042.3 8,458.5 (1,903.2) (1,915.7) 4,639.6 (289.9) 0.0 100.0 4,449.7 (756.4) (269.8) 3,423.5 3,423.5

Balance Sheet
Year to 31 Dec (S$m) Cash with central bank Govt treasury bills & securities Interbank loans Customer loans Investment securities Derivative receivables Associates & JVs Fixed assets (incl. prop.) Other assets Total assets Interbank deposits Customer deposits Derivative payables Debt equivalents Other liabilities Total liabilities Shareholders' funds Minority interest - accumulated Total equity & liabilities 2010 31,203.0 11,546.0 20,306.0 151,698.0 36,729.0 16,767.0 813.0 1,383.0 13,265.0 283,710.0 18,811.0 187,695.0 17,222.0 8,558.0 18,322.0 250,608.0 26,599.0 6,503.0 283,710.0 2011F 30,233.2 12,231.3 23,916.0 166,650.0 38,469.0 16,733.1 886.0 1,361.0 14,020.6 304,500.3 22,374.5 201,847.3 17,425.5 8,520.0 21,372.6 271,539.9 28,337.0 4,623.3 304,500.3 2012F 31,460.7 12,981.9 23,916.0 180,387.5 38,948.1 17,412.6 986.0 1,361.0 15,511.4 322,965.1 24,218.9 214,233.4 18,133.0 8,520.0 22,684.1 287,789.4 30,282.6 4,893.1 322,965.1 2013F 32,738.2 13,778.5 23,916.0 195,257.3 39,446.6 18,119.6 1,086.0 1,361.0 16,902.9 342,606.0 26,215.3 227,379.5 18,869.3 8,520.0 24,076.1 305,060.2 32,383.0 5,162.8 342,606.0

Operating Ratios
Year to 31 Dec (%) Capital Adequacy Tier-1 CAR Total CAR Total assets/equity (x) Tangible assets/tangible common equity (x) 15.1 18.4 10.7 12.8 14.1 17.1 10.7 12.7 14.2 17.1 10.7 12.5 14.3 17.1 10.6 12.2 2010 2011F 2012F 2013F

Key Metrics
Year to 31 Dec (%) Growth Net interest income, yoy chg Fees & commissions, yoy chg Pre-provision profit, yoy chg Net profit, yoy chg Net profit (adj.), yoy chg (3.1) 0.2 3.6 (20.0) 36.3 16.7 5.2 1.9 41.4 1.0 6.3 10.2 1.3 1.6 13.1 3.7 80.4 6.4 16.9 0.7 85.6 14.3 9.9 7.5 1.9 44.2 1.0 11.0 11.0 1.2 1.5 11.5 3.7 43.1 12.7 5.9 6.3 7.9 7.9 8.2 6.1 1.9 45.3 1.0 11.2 11.2 1.2 1.4 10.7 3.7 39.9 4.6 7.2 4.7 4.7 4.7 8.2 6.1 1.9 45.1 1.0 10.9 10.9 1.1 1.3 10.2 3.7 38.1 2010 2011F 2012F 2013F

Asset Quality NPL ratio Loan loss coverage Loan loss reserve/gross loans Increase in NPLs Credit cost (bp) Liquidity Loan/deposit ratio Liquid assets/short-term liabilities Liquid assets/total assets 82.4 30.4 22.2 84.2 29.5 21.8 85.8 28.6 21.2 87.5 27.7 20.6 1.9 110.3 1.9 (25.7) 60.1 1.7 124.5 1.9 (2.5) 17.7 1.5 133.1 1.9 0.0 15.4 1.4 142.5 1.9 0.0 15.4

Customer loans, yoy chg Customer deposits, yoy chg Profitability Net interest margin Cost/income ratio Adjusted ROA Reported ROE Adjusted ROE Valuation P/BV (x) P/NTA (x) Adjusted P/E (x) Dividend Yield Payout ratio

Refer to last page for important disclosures.

Page 4 of 9

Singapore Daily
Thursday, May 26, 2011

Singapore Airlines Singapore

Revolutionary change as airline goes budget
Whats New SIA goes budget. Singapore Airlines (SIA) announced it is forming a new low-cost medium- to long-haul carrier. The new airline, which will be wholly owned, will operate independently and managed separately from SIA. CEO Goh Choon Phong said he expects the low-fare airline to help generate demand. Stock Impact Breaking into new markets. SIA is aware that it is losing market share at Changi to low-cost carriers (LCC) and is also cognisant of the growth potential that the budget segment offers. However, Instead of competing with the three LCCs to operate short-haul routes, SIA has chosen to compete on the medium- to long-haul routes. This will allow SIA to gain exposure to a wider customer base and one which previously would have limited to the less than four-hour budget travel offered by existing LCCs. This is the only segment (low-cost, long-haul) which SIA does not have exposure to, given that SilkAir is primarily a regional carrier and 33%owned Tiger Airways is a short-haul budget operator. Europe, North India and China are possible destinations. North India, and second-tier Chinese cities, where the middle class is growing, will be possible destinations. Europe also remains a distinct possibility. Type of aircraft will be critical. A key question is whether SIA will use its existing B777s or reconfigure its current 471-seat A380s to a wider seat configuration. Air Austral, for example, has ordered two 840-seat A380s intended for its Runion-Paris route. We believe SIA will utilise the A380 on routes to Europe. This will allow SIA to lower yields by up to 30% and still achieve 50-60% higher volume. SIA currently has 10 A380s and will take delivery of another 12 in FY12. Some degree of cannibalisation of SIAs business is likely. The extent of cannibalisation will depend on: a) whether there will be route overlap, b) the timing of the flights, and c) possible access to second-tier airports. SIAs ability to increase yields will certainly be impacted as a result but the trade-off between yields and potential traffic increase could still be revenue- and profit-accretive for the group.

HOLD
(Maintained)

Company Update
Share Price Target Price Upside S$14.20 S$15.00 +5.6%

Company Description
Singapore Airlines is Singapore's flag carrier, flying to 93 destinations in 38 countries. The airline was ranked Asia's Best Airline by AsiaMoney for the 14th consecutive year.

Stock Data
GICS sector Bloomberg ticker: Shares issued (m): Market cap (S$m): Market cap (US$m): 3-mth avg daily t'over (US$m): Industrials SIA SP 1,195.2 16,971.2 13,579.1 26.0

Price Performance (%)

52-week high/low 1mth 3mth 0.4 2.5 6mth (7.9) S$16.50/S$13.00 1yr YTD 2.2 (7.2) % 54.92 11.65 4.46

Major Shareholders
Temasek Holdings FY12 NAV/Share (S$) FY12 Net Cash/Share (S$)

Price Chart
(lcy) 17.00 16.00 110 15.00 14.00 13.00 12.00 80 100 90
SINGAPORE AIRLINES LTD Singapore Airlines Ltd/FSSTI Index

(%) 120

Key Financials
Year to 31 Mar (S$m) Net turnover EBITDA Operating profit Net profit (rep./act.) Net profit (adj.) EPS (S$ cent) PE (x) P/B (x) EV/EBITDA (x) Dividend yield (%) Net margin (%) Net debt/(cash) to equity (%) Interest cover (x) ROE (%) Consensus net profit UOBKH/Consensus (x) 2010 12,707.3 1,819.7 63.2 215.8 215.8 18.1 78.4 1.3 6.4 0.8 1.7 (23.6) 93.8 1.6 2011 14,524.8 2,967.3 1,271.3 1,092.0 1,293.8 108.3 13.1 1.2 3.9 9.9 7.5 (39.8) 90.5 7.9 2012F 15,530.7 2,639.7 971.6 1,089.1 1,089.1 90.8 15.6 1.2 4.4 4.2 7.0 (38.3) 89.6 7.7 1,237.3 0.88 2013F 15,910.5 2,750.9 1,049.7 1,163.0 1,163.0 96.5 14.7 1.2 4.2 5.3 7.3 (45.8) 107.2 8.2 1,470.9 0.79 2014F 16,642.7 2,964.4 1,230.6 1,321.5 1,321.5 109.3 13.0 1.2 3.9 5.3 7.9 (47.8) 138.2 9.0 1,683.8 0.78

11.00 10.00
10

70

Volume (m)
5 0

May 10

Jul 10

Sep 10

Nov 10

Jan 11

Mar 11

May 11

Source: Bloomberg

Analysts
K Ajith +65 6590 6627 ajith@uobkayhian.com Eugene Ng +65 6590 6621 eugeneng@uobkayhian.com

Source: Singapore Airlines Limited , Bloomberg, UOB Kay Hian

Refer to last page for important disclosures.

Page 5 of 9

Singapore Daily
Thursday, May 26, 2011

Why now? SIA has realised the low-cost travel market is fast evolving and it will have a first-mover advantage in being the first full service carrier to enter the long-haul budget segment. This will also allow the airline to better compete with Middle Eastern carriers as the latter have been increasing capacity and offered better pricing than SIA on routes to Europe. Impact on competition and suppliers. Potential losers under the new environment will be Tiger Airways (SELL/Target: S$1.32), which could see some of the demand shift towards long-haul travel, AirAsia (BUY/Target: RM$3.70), whose long-haul associate AirAsia X will face a new contender in the region, and SATS (HOLD/Target: S$2.52). SATS currently provides passenger handling and inflight catering to SIA, which currently accounts for 33% of its revenue. With the launch of the longhaul budget carrier, SIA would require lower-cost meals and this would lower SATS margins.

EV/EBITDA Band
(x) 11 10 9 8 7 6 5 4 3 Apr-00 Apr-01 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 -1SD 4.9x -1SD 7.8x M ean 6.3x

Source: UOB Kay Hian

Valuation
Target P/B (x) P/B based Target Price (S$) - (a) Target EV/EBITDA (x) FY12F No. of Shares (m) FY12F Net Debt (S$m) FY12F MI (S$m) EV/EBITDA-based Target Price (S$) - (b) Target Price (Avg(a,b)) (S$)
Source: SIA, UOB Kay Hian

Earnings Revision/Risk No changes to our earnings estimates, pending details to be announced by the new airlines management team. The key risk is cannibalisation of SIAs existing business, which could limit SIAs ability to raise yields. However, if AirAsias business model is a guide, the increase in volume could still offer a beneficial trade-off. Valuation/Recommendation SIA is taking bold steps to fend off competition and re-invent itself. If SIA employs the A380 on its budget long-haul routes, we believe it will be able to dominate that segment and thus increase volume. However, immediate start-up costs could curb earnings growth. We thus maintain our HOLD on SIA with a target price of S$15.00, based on an average of long-term mean P/B and EV/EBITDA multiples. Suggested entry price is S$14.00, inclusive of S$1.20 final plus special dividends payable in August. Share Price Catalyst Improvement in load factors and reduction in capacity.

1.22 14.2 5.4 1,197 (4,974) 356 15.8 15.00

Refer to last page for important disclosures.

Page 6 of 9

Singapore Daily
Thursday, May 26, 2011
Profit & Loss
Year to 31 Mar (S$m) Net turnover EBITDA Deprec. & amort. EBIT Total other non-operating income Associate contributions Net interest income/(expense) Pre-tax profit Tax Minorities Net profit Net profit (adj.) 2011 14,524.8 2,967.3 1,696.0 1,271.3 183.4 198.9 (32.8) 1,620.8 (270.2) (56.8) 1,092.0 1,293.8 2012F 15,530.7 2,639.7 1,668.1 971.6 146.0 214.5 (29.5) 1,302.7 (156.3) (57.3) 1,089.1 1,089.1 2013F 15,910.5 2,750.9 1,701.2 1,049.7 140.0 235.0 (25.7) 1,399.1 (174.9) (61.2) 1,163.0 1,163.0 2014F 16,642.7 2,964.4 1,733.7 1,230.6 140.0 240.7 (21.5) 1,589.8 (198.7) (69.6) 1,321.5 1,321.5

Balance Sheet
Year to 31 Mar (S$m) Fixed assets Other LT assets Cash/ST investment Other current assets Total assets ST debt Other current liabilities LT debt Other LT liabilities Shareholders' equity Minority interest Total liabilities & equity 2011 13,877.6 887.7 7,832.0 1,947.2 24,544.5 901.7 5,330.6 1,281.2 2,528.2 14,204.4 298.4 24,544.5 2012F 14,019.5 925.2 6,651.8 2,328.2 23,924.7 0.0 5,625.3 1,281.2 2,627.1 14,035.3 355.7 23,924.7 2013F 13,273.3 965.2 7,817.2 2,380.6 24,436.4 0.0 5,777.3 1,226.2 2,627.1 14,388.8 416.9 24,436.4 2014F 13,428.3 1,006.4 8,271.5 2,481.7 25,188.0 0.0 6,054.5 1,171.2 2,627.1 14,848.7 486.5 25,188.0

Cash Flow
Year to 31 Mar (S$m) Operating Pre-tax profit Tax Deprec. & amort. Working capital changes Non-cash items Other operating cashflows Investing Capex (growth) Investments Proceeds from sale of assets Others Financing Dividend payments Issue of shares Proceeds from borrowings Loan repayment Others/interest paid Net cash inflow (outflow) Beginning cash & cash equivalent Changes due to forex impact Ending cash & cash equivalent 2011 3,285.2 1,419.0 (60.5) 1,682.7 567.3 (354.4) 31.1 (566.6) (1,223.8) (258.6) 721.4 194.4 284.2 (428.8) 44.9 801.7 0.0 (133.6) 3,002.8 4,471.9 (40.5) 7,434.2 2012F 2,717.4 1,302.7 (156.3) 1,657.7 226.1 (340.5) 27.8 (1,157.6) (2,200.0) (60.0) 842.5 259.9 (2,732.1) (1,745.6) 40.0 0.0 (900.0) (126.5) (1,172.2) 7,434.2 (20.0) 6,242.0 2013F 2,666.5 1,399.1 (174.9) 1,694.3 79.0 (355.0) 24.0 (498.0) (1,500.0) (60.0) 806.3 255.7 (1,056.4) (969.7) 40.0 0.0 0.0 (126.7) 1,112.1 6,242.0 (19.0) 7,335.2 2014F 2,932.4 1,589.8 (198.7) 1,729.9 152.3 (360.7) 19.8 (1,473.3) (2,500.0) (60.0) 821.4 265.3 (1,058.4) (972.0) 40.0 0.0 0.0 (126.5) 400.7 7,395.2 (19.0) 7,776.8

Key Metrics
Year to 31 Mar (%) Profitability EBITDA margin Pre-tax margin Net margin ROA ROE Growth Turnover EBITDA Pre-tax profit Net profit Net profit (adj.) EPS Leverage Debt to total capital Debt to equity Net debt/(cash) to equity Interest cover (x) 13.1 15.4 (39.8) 90.5 8.2 9.1 (38.3) 89.6 7.6 8.5 (45.8) 107.2 7.1 7.9 (47.8) 138.2 14.3 63.1 467.7 406.0 499.5 498.0 6.9 (11.0) (19.6) (0.3) (15.8) (16.2) 2.4 4.2 7.4 6.8 6.8 6.2 4.6 7.8 13.6 13.6 13.6 13.4 20.4 11.2 7.5 4.6 7.9 17.0 8.4 7.0 4.5 7.7 17.3 8.8 7.3 4.8 8.2 17.8 9.6 7.9 5.3 9.0 2011 2012F 2013F 2014F

Refer to last page for important disclosures.

Page 7 of 9

Singapore Daily
Thursday, May 26, 2011 Corporate
Chasen Holdings: FY11 earnings lifted by fair value gain. Net profit increased 65% yoy to S$7.74m in FY11,
despite a 5% yoy drop in revenue to S$71.7m, helped by a S$3.2m fair value gain on investment property. (Source: The Business Times)

China Print Power: Reduces controlling stake. China Print Power will offer an additional 9m shares for sale in
its planned listing in Hong Kong. The sale will reduce its controlling stake in the company to about 53.3% of the enlarged share capital. (Source: The Business Times)

Informatics: FY11 net profit falls 35%. The education and training service provider posted a net profit of S$2.6m
for FY11, -35% yoy. Revenue fell 5% yoy to S$36.1m, attributable to lower student recruitment and currency translation loss due to a weaker pound. (Source: The Business Times)

Pacific Andes: Approval for Taiwan listing. Pacific Andes Resources received in-principle approval from the
Singapore Exchange for the listing of up to 570m new shares in relation to its proposed Taiwan Depository Receipt listing. (Source: The Business Times)

TMC: Warns of loss. The company expects to report a loss before tax for FY11 mainly due to lower student recruitment. (Source: The Business Times) Think Environmental Company: Shifting towards gold mining. The company is looking to sell its renewable energy business and focus instead on gold mining. It intends to raise funds through new issue of shares or bank financing. (Source: The Business Times)

Sector
Property: S$969m top bid for Boon Lay Way site. CapitaMalls Asia (CMA), CapitaMall Trust (CMT) and
CapitaLand have put in the top bid of S$969m or S$1,012psfppr for a 99-year leasehold white site at Boon Lay Way, next to Jurong East MRT station. There were five bidders, with a joint venture between units of United Engineers and Singapore Press Holdings submitting the second-highest bid of S$917m. The site has a maximum permissible GFA of 957,772sf. The winning developer can build a mixed-use project but has to set aside at least 40% of the maximum permissible GFA for office use. (Source: The Business Times) Comment: CapitaMalls Asia will hold a 50% stake in the development, CapitaMalls Trust (CMT) a 30% stake while CapitaLand will own a 20% stake through CapitaLand Commercial. Based on a mixed development comprising 40% office and 60% retail, we estimate the blended breakeven cost at S$1,550psf. Although the bid was higher than the S$650psfppr, or S$749m, paid by Lend Lease for another white site at Jurong Lake district in Jun 10, the bid is not overly aggressive considering a blended average selling price of S$1,900-1,950psf (assuming S$6psfpm rental for the office component and S$15psfpm for retail component). The development could add S$213m in pre-tax profit to CapitaLand, or a marginal 4 cents accretion to our RNAV/share. Once completed, the retail mall could boost CMT's revenue by S$72m, or 12% of its current revenue stream.

Property: Non-landed luxury home prices steady. According to Savills Singapore, the average price of nonlanded high-end private home held steady at S$2,269psf in 1Q11, +0.5% qoq. The average price of super luxury residential homes rose 1% qoq to hit S$3,417psf. (Source: The Business Times)

Refer to last page for important disclosures.

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Singapore Daily
Thursday, May 26, 2011

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