PP16832/01/2013 (031128)

Malaysia
Sector Update

14 January 2013

Property: Developers

Neutral (unchanged)

Pain First, Gain Later

Wong Wei Sum, CFA
weisum@maybank-ib.com
(03) 2297 8679

Maintain Neutral. The 13GE will continue to dampen sentiment on

property stocks in 1H13, but a re-rating should take place post-13GE
with the planned rollout of government land developments (GLD) and
the KV MRT2-3 projects. We advise investors to avoid property
developers with high foreign shareholdings given the potential for a
selldown ahead of the 13GE. We prefer developers with large exposure
to township developments i.e. Glomac. We also like UEML for its
exposure to the booming Iskandar Malaysia; accumulate on weakness.

UEM Land (ULHD MK; HOLD; MYR2.21TP). The prime

beneficiary to the Iskandar Malaysia boom. It is also the
largest developer in Malaysia (in term of landbank and market
capitalisation). Potential surprises could come from strategic
land sales and the acquisition of government land
developments in Klang Valley.

Affordable housing is the key. We expect the demand for affordable

homes to remain strong driven by a sizeable young population. This
housing segment, dominated by first-time buyers/owner occupiers, is
less vulnerable to property downcycles and stricter lending rules.
Developers such as SPSB, Mah Sing and Glomac have been
increasing their exposures in the affordable housing segment by buying
sizeable landbanks in Kajang/Semenyih, Bangi, Sg Buloh and Sepang.

SP Setia (SPSB MK; BUY; MYR4.21 pre-placement TP). SP

Setia is famous with its creative and strong management
team. Reputable projects include Setia Alam and Setia Eco
Park. Share price drivers include: 1) strong sales figures for
Battersea post-its official launch in Jan 2013; 2) involvement
in government land developments; 3) the final alignment for
KVMRT Circle line in mid-2013 which would benefit SPSBs
KL Eco City and Setia Federal Hill.

Iskandar Malaysia (IM) is heating up. Rising investments and oil &
gas activities will serve as re-rating catalysts for property/land prices in
IM over the long term. Recent foreign investments in IM such as those
by Ascendas have raised IMs profile at the international level, reflecting
its attractiveness as an investment destination. UEML, as the largest
land owner in IM, is the prime beneficiary of the IM boom.

Sunway (SWB MK; HOLD; MYR2.54 TP) One of the

leading property and construction groups in Malaysia. It has
MYR3.2b outstanding orderbook YTD (construction) and
MYR2.1b unbilled sales as at Sep12 (property). With the
acquisition of another 779 acres of freehold land in Medini,
Sunway emerges as one of the key players in Iskandar
Malaysia with 1,534 acres of land worth MYR25b in GDV. Rerating catalysts include potential jobwins from MRT 2nd and 3rd
lines.

Share price drivers. We expect some GLD awards post the 13GE i.e.
Kwasas RRIM land in Sg Buloh, the Unilever land in Bangsar and the
Pudu jail redevelopment. These would provide short-term trading
opportunities for property stocks. Frontrunners to win the GLD awards
include GLCs such as SPSB, UEML and MRCB. Final alignment of the
KV MRT 2 and Circle lines is likely to be announced in 3Q13
(government approval is targeted for 2H13), and may be another rerating catalyst for selected developers. Key beneficiaries include SPSB,
YTL Land and Mah Sing.

Mah Sing (MSGB MK; HOLD; MYR2.45 TP) - MSGB is

famous with its fast turnaround strategy. MSGB has recently
proposed to undertake a renounceable rights issue with free
warrants to relief its overstretched balance sheet due to
aggressive landbanking exercises in 2012. To mitigate the
dilution impact, MSGB will match its fund-raising with new
land acquisitions. Re-rating catalysts include potential
involvement in government land developments.

Stock picks. Our top pick in the sector is Glomac. We like Glomac for
its undemanding valuations and large exposure to township
developments (48% of remaining GDV). We also like SPSB for its
proven track record and strategic landbank. However, the gradual
reduction in its founder stake may affect share price performance. As
for UEML, it is set to benefit from the booming IM. Any selldown ahead
of the 13GE is an opportunity to buy into the stock.

Glomac (GLMC MK; BUY; MYR1.00 TP) We like Glomac

for its cheap valuations, healthy balance sheet (0.13x net
gearing) and large exposure in more resilient township
developments. Share price drivers include: 1) strong sales
figures for Lake Residence project in Puchong; 2) RNAVaccretive land acquisitions; 3) potential involvement in
government land developments. Glomac is our preferred pick
for the property sector (developer).

Property Developer Sector Peer Valuation Summary

Stock

UEM Land
SP Setia
Sunway Berhad
Mah Sing
Glomac
Simple average

Rec

HOLD
BUY
HOLD
HOLD
BUY

Shr
px
(MYR
)
2.12
3.17
2.43
2.23
0.84

Mkt cap

TP

PER (x)

PER (x)

PER (x)

P/B (x)

P/B (x)

(MYRm)
9177.2
6358.4
3140.8
1872.9
592.9
21142.3

(MYR)
2.21
4.21
2.54
2.45
1.00

CY12E
27.5
16.4
9.1
8.1
5.9
13.4

CY13E
26.5
14.0
8.3
6.6
5.1
12.1

CY14E
22.6
10.7
7.5
4.6
4.0
9.9

CY12E
1.7
1.6
1.0
1.5
0.4
1.2

CY13E
1.6
1.5
0.9
1.3
0.4
1.1

ROAE
(%)
CY12E
7.1
9.4
10.6
18.8
13.4
11.8

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Source: Maybank KE
ROAE
Net
(%)
yield
CY13E
CY13E
6.0
0.7
10.4
4.3
10.5
2.4
20.5
6.1
14.2
7.5
12.3
4.2

Property: Developers

A review of 2012
Remaining Gross Development Values (GDV) and
unbilled sales
Company

Remaining
GDV
MYR b

Unbilled
sales
MYR b

(x) of our
FY13 revenue
forecast

Glomac

6.3

0.8

1.1

Mah Sing

17.2

3.0

1.6

SP Setia

67.0

4.4

1.3

Sunway

26.0

2.1

1.5

UEM Land

42.8

1.9

0.8

Further tightening measures. The government unexpectedly raised

Real Property Gains Tax (RPGT) by 5ppts in Budget 2013 to curb
speculative activities. The RPGT applies to gains on property disposals
where the holding period is 5 years. This comes on top of the prudent
financial measures introduced by the central bank in Nov 2011
(effective 1 Jan 2012), where individual borrowers borrowing capacity
will be based on his/her net income and no longer on gross income.
Demand slowed but further policy risk fading. Stricter lending rules
by the central bank and higher RPGT took their toll on property
demand. 9M12 property transaction growth (in value terms) slowed to
+11% YoY vs. +29% YoY in 9M11, whilst house price indexes in major
cities started to trend down QoQ in 3Q12 (Malaysia: -2%, KL: -3%,
Selangor: -2%, Penang: -3%, Johor: -4%). As overall property prices
and demand in major cities both ease, we expect further policy risk to
fade, which would be a comfort to developers.

* As at Sept 2012 for Mah Sing, Sunway, UEM Land, and

Oct 2012 for SP Setia and Glomac; Source: Companies

Foreign shareholdings for developers

Company

(%)

Glomac

6.7

Mah Sing

24.0

SP Setia

3.6

Sunway

20.5

UEM Land

15.9

Source: Companies

Rising incoming supply and units under construction

Growth in property transaction has slowed down YoY

(Un its)

(YoY growth)

50%

700,000

40%

650,000

30%

600,000

20%

550,000
10%

500,000

Sep-12

Sep-11

Mar-12

Sep-10

Mar-11

Sep-09

Mar-10

Sep-08

Mar-09

Sep-07

Incoming supply

Mar-08

Sep-06

Mar-07

Sep-05

Mar-06

Sep-04

Mar-05

Sep-03

Mar-04

Mar-03

400,000

Jun-12

-20%
Unit

Value

-30%

Under construction

Source: CEIC, NAPIC

Source: CEIC, NAPIC

House Price Index (HPI) in major cities are trending down

HPI is declining amidst higher incoming supply

HPI 2000 = 100

(unit)

210

HPI 2000 = 100

700,000

200
190

200
180

600,000

160

180
170
160

500,000

140

400,000

120

150

100

140
130

120

300,000

80

200,000

60
40

100,000

110

20

100

Source: CEIC, NAPIC

14 January 2013

Selan g or

Pen an g

Incoming supply

Jo h or

Jul-12

Dec-11

Oct-10

May-11

Mar-10

Aug-09

Jan-09

Jun-08

Nov-07

Apr-07

Sep-06

Feb-06

Jul-05

Dec-04

May-04

Oct-03

Sep-12

Jul-12

Mar-12

May-12

Jan-12

Nov-11

Jul-11

Sep-11

Mar-11

May-11

Jan-11

Nov-10

Jul-10

Sep-10

May-10

Jan-10

Mar-10

Nov-09

Jul-09

Sep-09

May-09

Jan-09

Mar-09

Nov-08

Sep-08

Jul-08

Mar-08

May-08

KL

Mar-03

90
80

Sep-12

Mar-12

Sep-11

Dec-11

Jun-11

Mar-11

Dec-10

Jun-10

Sep-10

Dec-09

Mar-10

Sep-09

Jun-09

-10%

Mar-09

0%

450,000

HPI

Source: CEIC, NAPIC

Page 2 of 17

Property: Developers

Spotlight on Iskandar Malaysia

Developers Undemanding valuations
Company

Price@ 11
Jan 2013
(MYR/Sh)
0.835

RNAV
(MYR/Sh)

Disc. to RNAV
(%)

1.82

-54.1

Mah Sing

2.25

3.77

-40.3

SP Setia

3.12

5.26

-40.7

Sunway

2.39

4.62

-48.3

UEM Land

2.15

3.4

-36.8

Glomac

Average
Source: Maybank KE

-44.0

New wave of development. 2012 was the tipping point for Iskandar
Malaysia (IM) with the completion of a few catalyst developments such
as LEGOLAND, an indoor theme park and Marlborough College
Malaysia. Also, the oil refinery and petrochemical (Pengerang) and tank
farm (Tj Langsat) projects have kicked off with the MYR5b deepwater
oil terminal project by a Dialog-Vopak-Johor government consortium. All
these developments are re-rating catalysts for property/land prices in
IM, as they will boost the population there.
Rising Singaporean investments. IM is experiencing higher foreign
investments especially from Singapore since May 2010 after the
resolution of POA 1990. According to the Malaysian Investment
Development Authority, Singapore companies have set up more than
300 manufacturing projects in IM since 2006, and the republic is the
largest single foreign investor in IM. Investment from Singapore is likely
to remain strong, boosted by: 1) rising confidence on IM after the recent
land acquisition by Singaporean company such as Ascendas and
businessmen such as Peter Lim; 2) a proposed rail transit system
between Johor Bahru and Singapore which will improve connectivity
and shorten travelling time; 3) cheaper cost of living, land and labour
costs in IM.
The biggest winner is UEM Land, the largest landowner in Iskandar
Malaysia with 5,145 acres of undeveloped landbank in Nusajaya (worth
MYR24b in GDV) and 680 acres in Desaru (to be developed in a JV
with Khazanah; MYR5.4b in GDV). Other beneficiaries are SP Setia
(1,178 acres of remaining land in IM worth MYR9.4b in GDV), IJM Land
(1,188 acres at Sebana Cove; MYR1.4b in GDV; Not Rated), Sunway
(1,534 acres; MYR25b in GDV), E&O (337 acres; MYR3b in GDV; Not
Rated) and Dijaya (350 acres; effective GDV of MYR9.4b; Not Rated).

A better 2H13 outlook

Getting ready for landbanking opportunities. Developers are
preparing for the tenders of government land developments by
strengthening their balance sheets. Both SPSB and Mah Sing have
proposed to undertake a new share placement and a rights issue
respectively, to relieve their overstretched balance sheets due to
aggressive landbanking in 2012. Sunway could be another candidate
for a cash call given its high net gearing of 0.6x post its Medini and
Singapore land acquisitions, we reckon.
Kick-starting government land developments (GLD). Thus far, only
the 60-acre plot of land in Cochrane has been tendered out by
Lembaga Tabung Angkatan Tentera (LTAT) 12.8 acres was sold to
Boustead Holdings at MYR190psf in Nov 2012. The long-awaited
tenders of the 3,000-acre Kwasa RRIM land in Sg Buloh and 19-acre
prime Unilever land plots, which should have taken place in 2H12, have
yet to do so. We expect the land awards to pick up pace post the 13GE.
In our view, such land wins provide short-term trading opportunities for
property stocks.

14 January 2013

Page 3 of 17

Property: Developers

GLCs the likely winners. GLCs will most likely be the front-runners for
a developer role in the government land developments. There is a good
chance that these listed GLCs will secure the larger and more strategic
parcels (especially for the prime RRIM land in Sg Buloh): (i) EPFs
42%-owned MRCB, (ii) Khazanahs 65%-owned UEML and (iii) PNBs
70%-owned SP Setia. However, we believe other developers with
strong track records like Mah Sing, Glomac, IJM Land and YTL Land
also stand a good chance of securing bids to develop some of these
land parcels.
MRT 2-3 lines and High Speed Rail (HSR) are positive for property
prices. Better connectivity and accessibility will raise the land value of
surrounding areas as well as the marketability of new property projects.
It will have a significant positive impact on property prices. As more
information is disseminated by the government on the location of the
MRT/HSR stations, we expect property prices in the vicinity of these
sites to surge. Developments most likely to benefit include: 1)
government land developments such as the KL Metropolis and Unilever
land, 2) SP Setias KL Eco City and Setia Federal Hill projects, 3) YTL
Lands Sentul projects, 4) MRCBs Sentral project, 5) UEMLs Mont
Kiara projects and 5) Mah Sings M City project.

14 January 2013

Page 4 of 17

Property: Developers
Table 1: Government land developments in the Klang Valley
No Government land

Location

Land size

Rubber Research
Institute of Malaysia
(RRIM) land

Sg Buloh

3,000 acres

Royal Malaysian Air

Force Base

Sg Besi

Jalan Cochrane

Potential developers

e.GDV
(RMm)

Description & status

UEML, MRCB, SP Setia,

Mah Sing, IJM Land, YTL
(926ha for
Land, Glomac
redevelopment,
216ha for RRI, 73ha
for MRT depot)

10,000

Mixed development; Kwasa Land Sdn Bhd

is the master developer for the RRIM land;

495 acres

1Malaysia Development
Bhd (30%), Qatar
Investment Authority
(40%)

15,000

Boustead Holdings

10,000

PuduCheras

60 acres

Tun Razak Exchange

(previously known as KL
International Financial
District)

Dataran
Perdana
(Jalan
Davis)

70 acres

Batu Cantonment army

base

Jalan Ipoh

245 acres

Pudu Jail
redevelopment project

Bukit
21.2 acres
Bintang, City
Centre

Crest Builder, Bolton

Off Jln Duta, 75 acres

within
Menara
Matrade and
next to Sri
Hartamas

Naza TTDI

Naza KL Metropolis

Land titles have been transferred to Kwasa

Land and it is currently working on the
master plan.
Mixed development project called Bandar
Malaysia;
New sites for the Royal Malaysia Air Force
have been signed and relocation process will
be in phases upon the completion of works at
the new bases within the next 5 years.
Mixed development;
Boustead Holdings has acquired 12.8-acre
from LTAT for MYR106.7m or c. MYR190psf
in Nov 2012.

1MDB-Abu Dhabi's
Mubadala Development
Co

26,000

Redevelopment of Pasarakyat in Imbi area

into an international financial centre; officially
launched in July 2012;
1MDB, the master developer for the KLIFD
has started its tender process for the main
foundation works for the project.

AFFB, Boustead Holdings

NA

Mixed development;
No update thus far.

5,000

Offices, hotels, apartments, a transit centre

and recreational centre;
UDA is asked to redraw and submit the
masterplan for the redevelopment of the
former Pudu jail site by end-2012 after the
Finance Ministry ditched the bid by a Chinabased developer in Oct 2011.

15,000

Future MATRADE Centre, which will be

Malaysia's largest meetings, convention and
exhibition centre;
Naza TTDI has recently awarded a
MYR556m superstructure works contract to
Daewoo Engineering and Construction Co
Ltd for the new Matrade Exhibition Centre.
The superstructure works are expected to be
completed by mid-2015;
Naza TTDI has signed a heads of agreement
with Lend Lease (listed in Australia) to
develop a 4.43 ha plot of land worth MYR4b
within the project.

Redevelopment of
Kampung Baru

Near KLCC

Warisan Merdeka

10

11

Unilever land

Tamansari Riverside
Garden City urban
regeneration project
Total:

14 January 2013

378 acres

PNB

20,000

Surrounding 35.8 acres

Stadium
Merdeka, off
Jln
Maharajalela

PNB

5,000

Along Jln
19 acres
Bangsar (exUnilever HQ
and Factory)

UEML, Bandaraya,
MRCB, Sime Properties
and Mah Sing

Pekeliling
area

Mah Sing, several local

and foreign developers

58 acres

No update thus far.

100-storey
skyscraper,
integrated
development; GFA: 3m sq.ft; NLA: 2.2m
sq.ft.
Construction work on Warisan Merdeka will
kick off in 2013. 60% of total spaces will be
occupied by PNB group.

4,000-5,000 Mixed development-offices, retail and service

apartments.
PHB is waiting the approval from the City
Hall and it may award the land to one
party/few parties/JV with developer.
9,000

Mixed development; No update thus far.

120,000

Page 5 of 17

Property: Developers
Table 2: Peers comparison
Company
FYE
Share price (MYR/sh) @ 11 Jan 2013
Number of shares ( m shares)
Market capitalisation (MYR m)
Target price (MYR/sh)
RNAV (MYR/sh)
Our TP: premium / discount to RNAV (%)
Potential upside (%)
Business background

UEML
Dec
2.15
4,328.9
9,307.1
2.21
3.40
-35
2.8
The largest developer
in Malaysia (by
landbank & market cap)
and land owner in
Nusajaya

SP Setia
Oct
3.12
2,009.7
6,270.3
4.21
5.26
-20
34.9
One of the leading
property players in
Malaysia; It is the
developer of reputable
Setia Alam and Setia
Eco Park projects;
Currently, it has
property projects in
Malaysia, Singapore,
Australia, UK, China
and Vietnam

Total landbank (acres)

Remaining GDV (MYR b)

6,905.4
42.8

Company sales target (MYR m ) - 2012

-2013
Actual sales (MYR m) - 2011
- 2012**
- 2013**
% achieved - 2012
- 2013
Unbilled sales

Foreign shareholdings (%)

Official/unofficial div payout policy (%)
Major shareholders

CY13
EPS
NDPS
NTA*
Valuation
PER (x)
Net div yield (%)
P/NTA (x)
P/RNAV (x)
Net gearing (x)*
Key earnings catalysts:

Mah Sing
Dec
2.25
839.9
1,889.7
2.45
3.77
-35
8.9
Developer of Icon City
and M City. It is
famous with its fastturnaround strategy.
The company is
ramping up its
township
developments with
land acquisitions in
Rawang and Bangi

Glomac
Apr
0.84
727.8
611.4
1.00
1.82
-45
19.2
Small cap developer.
Key projects include
Glomac Damansara
and Bandar Saujana
Utama. Close to 50% of
its remaining GDV is
from township
developments

4,279.0
67.0

Sunway
Dec
2.39
1,292.5
3,089.1
2.54
4.62
-45
6.3
One of the leading
property and
construction groups
in Malaysia.
Reputable projects
including Bandar
Sunway township.
The good take-ups
in its Singapore
projects has
cushioned the slow
down in Malaysian
property market
3,582.0
26.0

1,466.0
17.2

873.0
6.3

2,000.0
-

4,000.0
5,500.0

1,200.0
-

2,500.0
3,000.0

500.0
800.0

2,004.0
1,240.0
-

3,293.0
4,230.0
719.0

1,800.0
1,060.0
-

2,262.0
2,190.0
-

418.0
663.0
383.0

62%
NA

106%
13%

88%
NA

88%
NA

133%
48%

MYR1.9b unbilles sales

as at Sep 12, or 0.8x of
our FY13 forecast

MYR4.4b unbilled sales

as at Oct 12, or 1.3x of
our FY10/13 forecast

MYR2.1b unbilled
property sales (1.5x
of our FY13
forecast) as at Sep
12 and MYR3.2b
outstanding
construction order
book (2.2x our FY13
construction revenue
forecast)

MYR2.95b unbilled
sales as at Sep 12 or
1.6x of our FY13
forecast

MYR835m unbilled
sales as at Oct 12 or
1.1x of our FY4/13
forecast

15.9
20-40%
Khazanah (64.9%)
EPF (5.8%)

3.6
50.0
PNB (70%)
Tan Sri Liew Kee Sin
(5.6%)
EPF (5.1%)

20.5
20.0
Tan Sri Dato' Seri Dr
Jeffrey Cheah
(46.8%)

24.0
40.0
Tan Sri Dato' Sri
Leong Hoy Kum
(34.8%), EPF (9.2%),
Koperasi Permodalan
Felda (7.4%)
KWAP (7.3%)

6.7
Unofficial 40%
Tan Sri Dato' Mohamed
Mansor bin Fateh Din
(19.9%), Dato' Fateh
Iskandar bin Tan Sri
Dato' Mohamed Mansor
(15.6%), Datuk Fong
Loong Tuck (16.8%),
LTH (6.5%)

10.6
1.5
1.180

22.7
13.6
2.01

29.3
5.9
2.57

34.0
13.6
1.41

16.3
4.9
1.06

20.2
0.7
1.8
0.6
0.14

13.8
4.4
1.6
0.6
0.58

8.2
2.4
0.9
0.5
0.57

6.6
6.0
1.6
0.6
0.30

5.2
5.8
0.8
0.5
0.13

UEML
Projects in Nusajaya
and strategic land sales

SP Setia
MYR40b Battersea
Power Station, MYR8b
Setia Federal Hill,
MYR7b KL Eco City
and MYR1.1b Eco
Sanctuary in Singapore

Sunway
JV project in
Thomson/Irrawaddy
Road in Singapore,
Medini project and
MRT outstanding
orderbook

Mah Sing
The next catalyst
would be its Southville
City in Bangi
(MYR3.6b GDV)

Glomac
The next earnings
catalyst will be its
MYR2b worth of Lake
Residence in Puchong

* latest quarterly results

** latest quarterly results; Mah Sing sales as at 15 Nov 2012; SP Setia sales as at Dec 2012
Source: Companies, Maybank KE
14 January 2013

Page 6 of 17

Property: Developers

Table 3: SWOT
UEML
Strong political links
(backed by Khazanah);
Largest land owner in
Iskandar Malaysia with
strategically located
landbank (mostly
freehold + close
proximity to the Second
Link); Strong Sunrise
brandname and
expertise in high-rise
integrated development

SP Setia
Strong proven track
record and Setia
brandname; Strong
management team;
Strategically located
landbank (urban
redevelopment
projects i.e. KL Eco
City, Setia Federal
Hill)

Sunway
Strong Sunway
brandname;
Supported by steady
rental income from
investment
properties and
dividend income
from 37%-owned
Sunway REIT;
Singapore projects
are supported by
strong JV partner,
Hoi Hup

Mah Sing
Strong Mah Sing
brandname; Fast
turnaround strategy
which means lower
holding cost and
strong cash flow

Glomac
One of the few bumidevelopers with strong
political links; Large
exposure in township
developments - Bandar
Saujana Utama and
Saujana Rawang; Deep
valuation; Strong
balance sheet (net
gearing of 0.13x as at
Oct 2012) provides
room to grow its
landbank

Weakness

Long gestation period

and considerable
infrastructure works for
Gerbang Nusajaya;
Concentration risk as
majority of total
landbank and remaining
GDV are in Nusajaya;
Major shareholder
(Khazanah) may have
outright decisionmaking power
especially in land sale;
Relatively premium
valuation compared to
its peers

Illiquid; The gradual

reduction in stake by
its founder, Tan Sri
Liew may affect share
price performance;
Relatively premium
valuation compared to
its peers

Mostly high-end
products, less
exposure in
affordable township
developments; its
recently-acquired
Pendas North and
Pendas South land
in Medini require
considerable
infrastructure capex;
Potential cash call
given its high net
gearing of close to
0.6x; ; High foreign
shareholdings

Lack of a flagship
project which can
define Mah Sing;
Substantial EPS
dilution due to cash
call (rights issue +
free warrants); High
foreign shareholdings

Small market
capitalisation and low
average trading volume

Opportunity

Potential participation in
government land
developments in
Singapore and Klang
Valley; Increasing
investments in
Nusajaya would boost
property demand and
value over time;
Cheaper alternative to
pricey Singapore;
Better transpostation
system between Johor
Bahru and Singapore;
RNAV-accretive land
acquisitions

Potential participation
in government land
developments in
Klang Valley; The KV
MRT circle line may
benefit KL Eco City
and Setia Federal Hill
projects; RNAVaccretive land
acquisitions

Potential jobwins
from MRT 2nd and
3rd lines; RNAVaccretive land
acquisitions

Potential participation
in government land
developments in
Klang Valley; The KV
MRT circle line may
benefit M City project;
RNAV-accretive land
acquisitions

Potential participation in
government land
developments in Klang
Valley; Potential enbloc
sales in Glomac
Damansara and Plaza
Kelana Jaya IV; RNAVaccretive land
acquisitions;

Political and execution

risks involving bilateral
relations between
Malaysia-Singapore;
Oversupply in Mont
Kiara area; Increasing
competition from local
and foreign developers
especially in Iskandar
Malaysia; Downturn in
property sector

Downturn in property
sector; Country and
currency risks (with
projects in UK,
Australia, Singapore,
China and Vietnam)

Uncertainties in
China property
market (12% of its
remaining GDV is
from China);
Downturn in property
sector especially
high-rise high-end
products

Downturn in property
sector especially highrise high-end
products; Oversupply
in Mont Kiara area

Downturn in property
sector

Strength

Threat

Source: Maybank KE

14 January 2013

Page 7 of 17

Property: Developers

Glomac 1-year forward PER

Glomac 1-year forward PBV

Source: Maybank KE

Source: Maybank KE

SP Setia 1-year forward PER

SP Setia 1-year forward PBV

Source: Maybank KE

Source: Maybank KE

UEM Land 1-year forward PER

UEML 1-year forward PBV

Source: Maybank KE

Source: Maybank KE

14 January 2013

Page 8 of 17

Property: Developers

Sunway 1-year forward PER

Sunway 1-year forward PBV

Source: Maybank KE

Source: Maybank KE

Mah Sing 1-year forward PER

Mah Sing 1-year forward PBV

Source: Maybank KE

Source: Maybank KE

14 January 2013

Page 9 of 17

Property: Developers

Company
Briefs

14 January 2013

Page 10 of 17

Property: Developers

Driven By Township Projects

FYE Apr
2012A
2013F
2014F
2015F

607.7
727.8
0.835
1.00
BUY

Market Cap (MYR m):

Shares Issued (m):
Current price (MYR):
Target price (MYR):
Recommendation:

Glomac (GLMC MK)

Revenue
(MYR m)
655.6
793.3
878.0

EBITDA
MYR m)
174.4
169.4
192.9

Net Profit
(MYR m)
79.3
106.2
124.7

Basic EPS
(sen)
13.0
14.6
17.1

EPS gwth
(%)
22.8
11.9
17.4

DPS
(sen)
4.1
4.4
5.1

PER
(x)
6.4
5.7
4.9

EV/EBITDA
(x)
3.4
3.8
3.0

Div yield
(%)
4.9
5.2
6.1

P/BV
(x)
0.8
0.8
0.7

Net Gearing
(x)
12.1
18.0
7.1

ROE
(%)
13.5
13.7
14.5

1,091.4

243.1

164.0

22.5

31.5

6.8

3.7

2.0

8.1

0.6

Net cash

16.8

Our top pick. We continue to like Glomac for its cheap

valuations 5.1x CY13 PER, 0.8x PBV and a REIT-like net
dividend yield of 5.7%. It currently trades at a 54% discount
to our RNAV estimate of MYR1.81. Glomac is likely to meet
its sales target of MYR800m for FY4/13 (+21% YoY) with
the successful launch of its Lake Residence project in
Puchong.
Township projects continue to shine. Demand for units
in Bandar Saujana Utama and Saujana Rawang remains
strong with average monthly sales of MYR10-14m each,
providing a strong base for Glomacs earnings. Given the
strong demand for landed properties, Glomac is ramping up
its township development projects. It has acquired another
39 acres of land in Sepang (MYR1.1b in GDV), adding to its
existing 192 acres of landbank there.
Lake Residence, the key catalyst. Lake Residence
(MYR2b in GDV) should start contributing to Glomacs
FY4/13 sales soon. The maiden launch of Lake Residence
Phase 2 at end-Sep 2012 was well-received. All 105 units
of terrace houses at an ASP of MYR700,000/unit were
snapped up in a day. Management now plans to bring
forward the launch of Phase 3 (terraces) to 1QCY13.
INCOME STATEMENT (MYR m)
FY Apr

Confident of meeting sales target. Glomac has locked in

property sales of MYR383m in 6MFY4/13 (+81% YoY) or
47% of its FY4/13 sales target of MYR800m. FY4/13 sales
will be driven mainly by its Lake Residence and township
projects, we expect. Meanwhile, its redevelopment project
in Melbourne is not expected to kick off in the short term.
The project, which has an e.GDV of MYR1.2b, is expected
to enhance our RNAV estimate by 4sen.
Ample war chest to expand landbank. Glomacs net
gearing remains healthy at 0.13x as at Oct 2012, providing
a potential war chest of MYR475m based on its target net
gearing of 0.5x. To cater to the strong demand for
affordable housing while sustaining its long-term growth,
Glomac is eyeing sizeable tracts of land in Selangor.
Deeply-discounted developer. Our MYR1.00 TP is
based on a 45% discount to our MYR1.81 RNAV. Share
price drivers include: 1) the potential en-bloc sale of its
retail mall in Glomac Damansara worth MYR350m, 2) its
potential involvement in government land developments,
and 3) RNAV-accretive land acquisitions.

BALANCE SHEET (MYR m)

2012A

2013F

2014F

2015F

Revenue
EBITDA
Depreciation & Amortisation
Operating Profit
Associates
Interest (Exp)/Inc
Exceptional Items
Pre-Tax Profit
Tax
Minority Interest
Net Profit
Recurring Net Profit

655.6
174.4
5.6
161.3
0.0
(6.8)
8.0
171.9
(43.9)
34.2
92.3
79.3

793.3
169.4
4.9
164.6
0.0
(11.1)
0.0
153.5
(38.4)
8.9
106.2
106.2

878.0
192.9
5.9
187.0
0.0
(9.5)
0.0
177.5
(44.4)
8.4
124.7
124.7

1,091.4
243.1
6.7
236.3
0.0
(7.7)
0.0
228.6
(57.2)
7.4
164.0
164.0

Revenue Growth %
EBITDA Growth (%)
EBIT Growth (%)
Net Profit Growth (%)
Recurring Net Profit Growth (%)
Tax Rate %

9.0
23.0
19.9
36.1
25.8
(26.8)

21.0
(2.8)
2.0
23.8
33.9
(25.0)

10.7
13.9
13.7
17.4
17.4
(25.0)

24.3
26.0
26.4
31.5
31.5
(25.0)

FY Apr

2012A

2013F

2014F

2015F

Fixed Assets
Other LT Assets
Cash/ST Investments
Other Current Assets
Total Assets

4.2
599.4
337.2
420.9
1,361.6

9.3
728.7
274.8
888.1
1,900.9

13.4
663.9
352.8
981.4
2,011.5

16.7
582.3
442.3
1,228.5
2,269.7

ST Debt
Other Current Liabilities
LT Debt
Other LT Liabilities
Minority Interest
Shareholders' Equity
Total Liabilities-Capital

82.6
236.0
331.4
17.0
61.1
633.5
1,361.6

82.6
635.0
331.4
17.0
61.1
773.7
1,900.9

82.6
658.3
331.4
17.0
61.1
861.0
2,011.5

82.6
801.7
331.4
17.0
61.1
975.9
2,269.7

609.2
(76.9)
96.3
12.1

729.0
(139.2)
116.5
18.0

729.0
(61.3)
128.9
7.1

729.0
28.2
160.3
(2.9)

Share Capital (m)

Net Cash/(Debt)
Working Capital
Net Gearing %

Sources: Company, Maybank KE

14 January 2013

Page 11 of 17

Property: Developers

Scaling Greater Heights

FYE Oct
2012A
2013F
2014F
2015F

Revenue
(MYR m)
2,526.6
3,625.2
4,588.4
6,544.2

EBITDA
MYR m)
601.0
755.1
952.6
1,354.4

Net Profit
(MYR m)
372.9
466.6
595.5
855.2

Basic EPS
(sen)
18.9
21.7
27.7
39.8

EPS gwth
(%)
16.4
14.8
27.6
43.6

DPS
(sen)
10.5
13.0
16.6
23.9

Setting the standard. We continue to like SPSB for its

market leadership, strong track record and strategic
landbank, which underpins its long-term growth potential.
RNAV-accretive land deals could provide positive surprises.
Our TP is MYR4.20 (MYR3.96 post-placement), based on a
20% discount to our MYR5.26 RNAV estimate (MYR4.95
post-placement).
Earnings uptrend continues. SPSB closed its FY10/12
with record sales of MYR4.2b (+29% YoY). Unbilled sales
stood at MYR4.4b as at end-Oct 2012 (1.3x our FY10/13
revenue forecast), providing near-term earnings visibility. It
has set a new record sales target of MYR5.5b (+30% YoY)
for FY10/13, driven by Battersea Power Station (BPS), Eco
Sanctuary in Singapore and Setia Eco Hills in Kajang.
Strengthening its balance sheet. SPSB has been on an
aggressive acquisition drive. Hence, it would not surprise us
if there are more land acquisitions to come. The proposed
private placement of 322.6m new shares is to fund recent
land acquisitions including BPS, as well as initial
construction costs for St Kilda and BPS. Post placement,
SPSB will be able to continue landbanking with ease, as its
net gearing will have fallen to below 0.5x (from above 0.6x).
INCOME STATEMENT (MYR m)
FY Oct
Revenue
EBITDA
Depreciation & Amortisation
Operating Profit (EBIT)
Interest (Exp)/Inc
Associates
One-offs
Pre-Tax Profit
Tax
Minority Interest
Net Profit
Recurring Net Profit
Revenue Growth %
EBITDA Growth (%)
EBIT Growth (%)
Net Profit Growth (%)
Recurring Net Profit Growth (%)
Tax Rate %

6,270.3
2,009.7
3.12
4.21

Market Cap (MYR m):

Shares Issued (m):
Current price (MYR):
Target price (MYR):
Recommendation:

S P Setia (SPSB MK)

PER
(x)
16.5
14.4
11.3
7.8

EV/EBITDA
(x)
24.8
20.3
11.5
13.9

Div yield
(%)
3.4
4.2
5.3
7.6

P/BV
(x)
1.5
1.4
1.4
1.3

BUY

Net Gearing
(x)
0.6
0.8
0.9
0.8

ROE
(%)
9.7
10.0
12.2
16.3

Likely winner of government land development

projects. SPSB has demonstrated its strong business
relationship with the government via three urban
redevelopment projects i.e. KL Eco City, recently-secured
Setia Federal Hill (a land swap deal) and the Bandar Tun
Razak redevelopment in Cheras. Given its proven track
record and strong backing by major shareholder PNB,
SPSB is likely to be a front-runner for a role in government
land developments including the 3,000-acre Rubber
Research Institute Malaysia (RRIM) land in Sungai Buloh.
Share price drivers include: 1) strong sales figures for
BPS post its official launch in Jan 2013; 2) involvement in
government land developments; 3) the final alignment of
the KVMRT Circle Line in mid-2013, which could benefit
SPSBs KL Eco City and Setia Federal Hill..
Preparing for growth. SPSB currently trades at a forward
PER/PBV of 14.4x/1.4x, below the respective historical
means of 16x/1.8x. Whilst SPSBs proposed placement of
322.6m new shares will dilute our FY10-13/14 EPS
estimates by 12%/13%, its balance sheet will strengthen
significantly, giving it the wherewithal to take advantage of
landbanking opportunities.
BALANCE SHEET (MYR m)

2012A

2013F

2014F

2015F

2,526.6
601.0
18.5
582.5
(15.0)
0.0
20.9
567.5
(179.9)
6.2
393.8
372.9

3,625.2
755.1
22.9
732.2
(43.3)
0.0
0.0
688.9
(172.2)
(50.1)
466.6
466.6

4,588.4
952.6
27.1
925.5
(51.4)
0.0
0.0
874.1
(218.5)
(60.1)
595.5
595.5

6,544.2
1,354.4
31.1
1,323.3
(52.8)
0.0
0.0
1,270.5
(317.6)
(97.7)
855.2
855.2

13.2
32.3
31.8
20.1
26.6
25.0

43.5
25.6
25.7
18.5
25.1
25.0

26.6
26.2
26.4
27.6
27.6
25.0

42.6
42.2
43.0
43.6
43.6
25.0

FY Oct

2012A

2013F

2014F

2015F

Fixed Assets
Other LT Assets
Cash/ST Investments
Other Current Assets
Total Assets

679.6
4,693.2
1,543.6
2,436.9
9,353.3

679.6
4,452.2
1,543.6
5,106.9
11,782.3

679.6
4,211.2
1,329.8
7,033.3
13,254.0

679.6
3,970.2
1,736.3
8,621.5
15,007.7

ST Debt
Other Current Liabilities
LT Debt
Other LT Liabilities
Minority Interest
Shareholders' Equity
Total Liabilities-Capital

1,520.8
1,429.4
2,361.7
2.2
(4.8)
4,043.9
9,353.3

1,520.8
2,030.1
3,580.0
2.2
(4.8)
4,653.9
11,782.3

1,520.8
2,556.7
4,286.9
2.2
(4.8)
4,892.1
13,254.0

1,520.8
3,626.2
4,628.0
3.2
(4.8)
5,234.2
15,007.7

Share Capital (m)

Gross Debt/(Cash)
Net Debt/(Cash)
Working Capital
Gross gearing %

1,973.4
3,882.6
2,339.0
1,030.2
96.0

2,151.0
5,100.8
3,557.3
3,099.5
109.6

2,151.0
5,807.7
4,477.9
4,285.6
118.7

2,151.0
6,148.9
4,412.6
5,210.8
117.5

Sources: Company, Maybank KE

14 January 2013

Page 12 of 17

Property: Developers

Biggest Winner In Iskandar Malaysia

FYE Dec
2011A
2012F
2013F
2014F

Revenue
(MYR m)
1,703.2
2,212.8
2,719.9
2,832.8

EBITDA
MYR m)
368.5
536.7
709.9
695.7

Net Profit
(MYR m)
301.7
365.4
459.7
462.7

Basic EPS
(sen)
6.5
8.5
10.6
10.7

EPS gwth
(%)
21.0
30.9
25.8
0.6

DPS
(sen)
0.0
1.5
1.5
1.5

Iskandar Malaysia (IM) is heating up. Rising investments

and oil & gas activities will serve as re-rating catalysts for
property/land prices in IM over the long term. UEML, as the
largest landowner in IM, is the prime beneficiary of the IM
boom. Our TP of MYR2.21, based on 35% discount to
MYR3.40 RNAV, has upside potential.
Rising foreign investments. Recent foreign investments
in IM such as those by Ascendas and Country Garden have
raised IMs profile at the international level, reflecting its
attractiveness as an investment destination. IMs property
prices would be further boosted by a better transportation
system, we believe. With a wide range of property types on
offer, UEML is set to benefit from the booming IM.
Boosted by catalyst developments. 2012 was the tipping
point for Iskandar Malaysia with the completion of a few
landmark developments e.g. LegoLand, an indoor theme
park and Marlborough College. Projects to be completed
over the next two years include Pinewood Iskandar
Malaysia Studios, Netherlands Maritime Institute of
Technology, etc. These projects will accelerate growth at
Nusajaya and boost the population in Iskandar Malaysia.
INCOME STATEMENT (MYR m)
FY Dec
Revenue
EBITDA
Depreciation & Amortisation
Operating Profit
Associates
Interest (Exp)/Inc
Exceptional Items
Pre-Tax Profit
Tax
Minority Interest
Net Profit
Recurring Net Profit
Revenue Growth %
EBITDA Growth (%)
EBIT Growth (%)
Net Profit Growth (%)
Recurring Net Profit Growth (%)
Tax Rate %

PER
(x)
33.3
25.4
20.2
20.1

9,307.1
4,328.9
2.15
2.21

Market Cap (MYR m):

Shares Issued (m):
Current price (MYR):
Target price (MYR):
Recommendation:

UEM Land (ULHB MK)

EV/EBITDA
(x)
26.9
18.3
15.1
15.4

Div yield
(%)
0.0
0.7
0.7
0.7

P/BV
(x)
2.1
2.0
1.9
1.8

HOLD

Net Gearing
(x)
19.3
16.7
25.8
24.7

ROE
(%)
6.2
7.1
8.5
7.9

Frontrunner for government land developments. With

strong Khazanah parentage, we view UEML as one of the
frontrunners for government land developments in the
Klang Valley. These include the RRIM land in Sg Buloh
and 19 acres of Unilever land in Bangsar. The securing of
these developments would provide a strong impetus to
UEMLs earnings and valuation.
Expect stronger 4QFY12. Results could surprise on the
upside with the recognition of land/asset sales. UEML has
locked in sales of MYR1.24b for the year to Sep 2012,
62% of its revised FY12 sales target of MYR2b (from
MYR3b, due to delays in property launches). Its unbilled
sales of MYR1.9b makes up 0.8x of our FY13 revenue
forecast.
Share price drivers. Re-rating catalysts include: 1)
potential acquisition of government land developments in
the Klang Valley, 2) higher-than-expected strategic land
sales, 3) the potential listing of IWH, which could generate
more interest in Iskandar Malaysia. Any selldown ahead of
the 13th general election is an opportunity to buy into the
stock, in our view.
BALANCE SHEET (MYR m)

2011A

2012F

2013F

2014F

1,703.2
368.5
12.2
364.1
42.5
(51.4)
0.0
355.2
(52.3)
(1.2)
301.7
301.7

2,212.8
536.7
19.8
516.9
34.4
(62.3)
0.0
489.0
(122.2)
(1.3)
365.4
365.4

2,719.9
709.9
25.8
684.1
51.7
(122.4)
0.0
613.4
(153.3)
(0.3)
459.7
459.7

2,832.8
695.7
31.4
664.3
81.0
(125.1)
0.0
620.2
(155.1)
(2.5)
462.7
462.7

262.6
99.9
102.9
55.1
55.1
14.7

29.9
45.7
42.0
21.1
21.1
25.0

22.9
32.3
32.3
25.8
25.8
25.0

4.1
(2.0)
(2.9)
0.6
0.6
25.0

FY Dec

2011A

2012F

2013F

2014F

Fixed Assets
Other LT Assets
Cash/ST Investments
Other Current Assets
Total Assets

162.3
4,516.3
904.3
2,210.8
7,793.7

242.6
4,379.9
973.9
2,552.0
8,148.4

316.8
4,187.0
973.9
3,754.5
9,232.2

385.4
3,953.8
973.9
4,232.4
9,545.5

ST Debt
Other Current Liabilities
LT Debt
Other LT Liabilities
Minority Interest
Shareholders' Equity
Total Liabilities-Capital

51.7
673.1
1,511.7
260.7
460.2
4,836.4
7,793.7

51.7
715.3
1,511.7
260.7
460.2
5,148.9
8,148.4

51.7
987.4
2,047.7
260.7
460.2
5,424.6
9,232.2

51.7
861.5
2,089.1
260.7
460.2
5,822.4
9,545.5

Share Capital (m)

Net Cash/(Debt)
Working Capital
Net Gearing %

4,169.9
(931.3)
2,390.3
19.3

4,169.9
(861.7)
2,759.0
16.7

4,323.8
(1,397.6)
3,689.3
25.8

4,323.8
(1,439.1)
4,293.1
24.7

Sources: Company, Maybank KE

14 January 2013

Page 13 of 17

Property: Developers

RESEARCH OFFICES
REGIONAL
P K BASU
Regional Head, Research & Economics
(65) 6432 1821 pk.basu@maybank-ke.com.sg
WONG Chew Hann, CA
Acting Regional Head of Institutional Research
(603) 2297 8686 wchewh@maybank-ib.com
ONG Seng Yeow
Regional Products & Planning
(65) 6432 1453 ongsengyeow@maybank-ke.com.sg

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, CA
(603) 2297 8678 ct.ong@maybank-ib.com
Plantations- Regional
Mohshin AZIZ
(603) 2297 8692 mohshin.aziz@maybank-ib.com
Aviation
Petrochem
YIN Shao Yang, CPA
(603) 2297 8916 samuel.y@maybank-ib.com
Gaming Regional
Media
T AN CHI WEI, CFA
(603) 2297 8690 chiwei.t@maybank-ib.com
Power
Telcos
WONG Wei Sum, CFA
(603) 2297 8679 weisum@maybank-ib.com
Property & REITs
LEE Yen Ling
(603) 2297 8691 lee.yl@maybank-ib.com
Building Materials
Manufacturing
Technology
LEE Cheng Hooi Head of Retail
chenghooi.lee@maybank-ib.com
Technicals

HONG KONG / CHINA

Edward FUNG Head of Research
(852) 2268 0632 edwardfung@kimeng.com.hk
Construction
Ivan CHEUNG, CFA
(852) 2268 0634 ivancheung@kimeng.com.hk
Property
Industrial
Ivan LI, CFA
(852) 2268 0641 ivanli@kimeng.com.hk
Banking & Finance
Jacqueline KO, CFA
(852) 2268 0633 jacquelineko@kimeng.com.hk
Consumer
Andy POON
(852) 2268 0645 andypoon@kimeng.com.hk
Telecom & equipment
Alex YEUNG
(852) 2268 0636 alexyeung@kimeng.com.hk
Industrial
Warren LAU
(852) 2268 0644 warrenlau@kimeng.com.hk
Technology - Regional
Karen Kwan
(852) 2268 0640 karenkwan@kimeng.com.hk
China Property

INDIA
Jigar SHAH Head of Research
(91) 22 6623 2601 jigar@maybank-ke.co.in
Oil & Gas
Automobile
Cement
Anubhav GUPTA
(91) 22 6623 2605 anubhav@maybank-ke.co.in
Metal & Mining
Capital goods
Property
Ganesh RAM
(91) 226623 2607 ganeshram@maybank-ke.co.in
Telecom
Contractor

14 January 2013

ECONOMICS
Suhaimi ILIAS
Chief Economist
Singapore | Malaysia
(603) 2297 8682 suhaimi_ilias@maybank-ib.com
Luz LORENZO
Philippines | Indonesia
(63) 2 849 8836 luz_lorenzo@maybank-atrke.com
Tim LEELAHAPHAN
Thailand
(662) 658 1420 tim.l@maybank-ke.co.th

SINGAPORE
Gregory YAP Head of Research
(65) 6432 1450 gyap@maybank-ke.com.sg
Technology & Manufacturing
Telcos - Regional
Wilson LIEW
(65) 6432 1454 wilsonliew@maybank-ke.com.sg
Hotel & Resort
Property & Construction
James KOH
(65) 6432 1431 jameskoh@maybank-ke.com.sg
Logistics
Resources
Consumer
Small & Mid Caps
YEAK Chee Keong, CFA
(65) 6432 1460 yeakcheekeong@maybank-ke.com.sg
Offshore & Marine
Alison FOK
(65) 6432 1447 alisonfok@maybank-ke.com.sg
Services
S-chips
Bernard CHIN
(65) 6432 1146 bernardchin@maybank-ke.com.sg
Transport (Land, Shipping & Aviation)
ONG Kian Lin
(65) 6432 1470 ongkianlin@maybank-ke.com.sg
REITs / Property
Wei Bin
(65) 6432 1455 weibin@maybank-ke.com.sg
S-chips
Small & Mid Caps

INDONESIA
Katarina SETIAWAN Head of Research
(62) 21 2557 1125 katarina.setiawan@maybank-ke.co.id
Consumer
Strategy
Telcos
Lucky ARIESANDI, CFA
(62) 21 2557 1127 lucky.ariesandi@maybank-ke.co.id
Base metals
Mining
Oil & Gas
Wholesale
Rahmi MARINA
(62) 21 2557 1128 rahmi.marina@maybank-ke.co.id
Banking
Multifinance
Pandu ANUGRAH
(62) 21 2557 1137 pandu.anugrah@maybank-ke.co.id
Automotive
Heavy equipment
Plantation
Toll road
Adi N. WICAKSONO
(62) 21 2557 1128 adi.wicaksono@maybank-ke.co.id
Generalist
Anthony YUNUS
(62) 21 2557 1139 anthony.yunus@maybank-ke.co.id
Cement
Infrastructure
Property
Arwani PRANADJAYA
(62) 21 2557 1129 arwani.pranadjaya@maybank-ke.co.id
Technicals

THAILAND
Sukit UDOMSIRIKUL Head of Research
(66) 2658 6300 ext 5090
Sukit.u@maybank-ke.co.th
Maria LAPIZ Head of Institutional Research
Dir (66) 2257 0250 | (66) 2658 6300 ext 1399
Maria.L@maybank-ke.co.th
Consumer/ Big Caps
Andrew STOTZ Strategist
(66) 2658 6300 ext 5091
Andrew@maybank-ke.co.th
Mayuree CHOWVIKRAN
(66) 2658 6300 ext 1440 mayuree.c@maybank-ke.co.th
Strategy
Suttatip PEERASUB
(66) 2658 6300 ext 1430 suttatip.p@maybank-ke.co.th
Media
Commerce
Sutthichai KUMWORACHAI
(66) 2658 6300 ext 1400 sutthichai.k@maybank-ke.co.th
Energy
Petrochem
Termporn T ANTIVIVAT
(66) 2658 6300 ext 1520 termporn.t@maybank-ke.co.th
Property
Woraphon WIROONSRI
(66) 2658 6300 ext 1560 woraphon.w@maybank-ke.co.th
Banking & Finance
Jaroonpan WATTANAWONG
(66) 2658 6300 ext 1404 jaroonpan.w@maybank-ke.co.th
Transportation

Small cap.
Chatchai JINDARAT
(66) 2658 6300 ext 1401 chatchai.j@maybank-ke.co.th
Electronics
Pongrat RATANATAVANANANDA
(66) 2658 6300 ext 1398 pongrat.R@maybank-ke.co.th
Services/ Small Caps

VIETNAM
Michael KOKALARI, CFA Head of Research
(84) 838 38 66 47 michael.kokalari@maybank-kimeng.com.vn

Strategy
Nguyen Thi Ngan Tuyen
(84) 844 55 58 88 x 8081 tuyen.nguyen@maybank-kimeng.com.vn

Food and Beverage

Oil and Gas

Ngo Bich Van
(84) 844 55 58 88 x 8084 van.ngo@maybank-kimeng.com.vn

Banking
Trinh Thi Ngoc Diep
(84) 844 55 58 88 x 8242 diep.trinh@maybank-kimeng.com.vn

Technology

Utilities

Construction
Dang Thi Kim Thoa
(84) 844 55 58 88 x 8083 thoa.dang@maybank-kimeng.com.vn

Consumer
Nguyen Trung Hoa
+84 844 55 58 88 x 8088 hoa.nguyen@maybank-kimeng.com.vn

Steel

Sugar

Resources

PHILIPPINES
Luz LORENZO Head of Research
(63) 2 849 8836 luz_lorenzo@maybank-atrke.com
Strategy
Laura DY-LIACCO
(63) 2 849 8840 laura_dyliacco@maybank-atrke.com
Utilities
Conglomerates
Telcos
Lovell SARREAL
(63) 2 849 8841 lovell_sarreal@maybank-atrke.com
Consumer
Media
Cement
Kenneth NERECINA
(63) 2 849 8839 kenneth_nerecina@maybank-atrke.com
Conglomerates
Property
Ports/ Logistics
Katherine T AN
(63) 2 849 8843 kat_tan@maybank-atrke.com
Banks
Construction
Ramon ADVIENTO
(63) 2 849 8845 ramon_adviento@maybank-atrke.com
Mining

Page 14 of 17

Property: Developers
APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES
DISCLAIMERS
This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an
offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that
each securitys price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings.
Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related
information extracted from the relevant jurisdictions stock exchange in the equity analysis. Accordingly, investors returns may be less than the original sum
invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not
take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors
should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or
recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank
Investment Bank Berhad, its subsidiary and affiliates (collectively, MKE) and consequently no representation is made as to the accuracy or completeness of
this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connec ted parties and/or employees
(collectively, Representatives) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this
report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.
This report may contain forward looking statements which are often but not always identified by the use of words such as anticipate, believe, estimate,
intend, plan, expect, forecast, predict and project and statements that an event or result may, will, can, should, could or might occur or be
achieved and other similar expressions. Such forward looking statements are based on assumptions made and information current ly available to us and are
subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements.
Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any such
forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated
events.
MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from
time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, p erform services for or solicit business
from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments
related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent permitted by law,
act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published. One or more directors,
officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report.
This report is prepared for the use of MKEs clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in
whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the
actions of third parties in this respect.
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. This rep ort is for distribution only under such
circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of
investors. Without prejudice to the foregoing, the reader is to note that additional disclaimer s, warnings or qualifications may apply based on geographical
location of the person or entity receiving this report.
Malaysia
Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental
ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia
Securities Berhad in the equity analysis.
Singapore
This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (Maybank
KERPL) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact
Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor,
expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the
contents of this report, with such liability being limited to the extent (if any) as permitted by law.
Thailand
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 th e 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 r esult, 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 may be changed after that date. Maybank Kim Eng Securities (Thailand)
Public Company Limited (MBKET) does not confirm nor certify the accuracy of such survey result.
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the pri or written permission of MBKET.
MBKET accepts no liability whatsoever for the actions of third parties in this respect.
US
This research report prepared by MKE is distributed in the United States (US) to Major US Institutional Investors (as defin ed in Rule 15a-6 under the
Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (Maybank KESUSA), a broker-dealer registered in the US
(registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in
the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a regist ered broker-dealer in the
US. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You
should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investment s to you under relevant
legislation and regulations.
UK
This document is being distributed by Maybank Kim Eng Securities (London) Ltd (Maybank KESL) which is authorized and regulated, by the Fin ancial
Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial
Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any
responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as
constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.

14 January 2013

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Property: Developers
DISCLOSURES
Legal Entities Disclosures
Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa
Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued
and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim
Eng Securities (PTKES) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand:
MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and t he Securities and
Exchange Commission.Philippines:MATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities
and Exchange Commission. Vietnam: Kim Eng Vietnam Securities Company (KEVS) (License Number: 71/UBCK-GP) is licensed under the
StateSecuritiesCommission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim
Eng Securities India Private Limited (KESI) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay
Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also register ed with SEBI as Category 1
Merchant Banker (Reg. No. INM 000011708) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA Broker ID 27861. UK:
Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.

Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act
as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking
services, advisory and other services for or relating to those companies.
Singapore: As of 14 January 2013, Maybank KERPL and the covering analyst do not have any interest in any companies recommend ed in this research
report.
Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the
research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected
parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.
Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph
16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
As of 14 January 2013, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in
issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 m onths, significant advice or investment
services in relation to the investment concerned or a related investment.

OTHERS
Analyst Certification of Independence
The views expressed in this research report accurately reflect the analysts personal views about any and all of the subject securities or issuers; and no part of
the research analysts compensation was, is or will be, directly or indirectly, related to the specific recommendations or vi ews expressed in the report.
Reminder
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable
of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political
factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any
issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own an alysis of the product and consult with its own
professional advisers as to the risks involved in making such a purchase.
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.

Definition of Ratings
Maybank Kim Eng Research uses the following rating system:
BUY

Total return is expected to be above 10% in the next 12 months (excluding dividends)

HOLD

Total return is expected to be between -10% to +10% in the next 12 months (excluding dividends)

SELL

Total return is expected to be below -10% in the next 12 months (excluding dividends)

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

14 January 2013

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

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Property: Developers

Malaysia

Maybank Investment Bank Berhad

(A Participating Organisation of
Bursa Malaysia Securities Berhad)
33rd Floor, Menara Maybank,
100 Jalan Tun Perak,
50050 Kuala Lumpur
Tel: (603) 2059 1888;
Fax: (603) 2078 4194

Stockbroking Business:

Level 8, Tower C, Dataran Maybank,

No.1, Jalan Maarof
59000 Kuala Lumpur
Tel: (603) 2297 8888
Fax: (603) 2282 5136

Singapore

Maybank Kim Eng Securities Pte Ltd

Maybank Kim Eng Research Pte Ltd
9 Temasek Boulevard
#39-00 Suntec Tower 2
Singapore 038989

Hong Kong

Kim Eng Securities (HK) Ltd

Level 30,
Three Pacific Place,
1 Queens Road East,
Hong Kong

Tel: (852) 2268 0800

Fax: (852) 2877 0104

Philippines

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

Thailand

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)

South Asia Sales Trading

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

Maybank Kim Eng Securities

(London) Ltd
6/F, 20 St. Dunstans Hill
London EC3R 8HY, UK

Tel: (44) 20 7621 9298

Dealers Tel: (44) 20 7626 2828
Fax: (44) 20 7283 6674

Tel: (65) 6336 9090

Fax: (65) 6339 6003

London

Indonesia

PT Kim Eng Securities

Plaza Bapindo
Citibank Tower 17th Floor
Jl Jend. Sudirman Kav. 54-55
Jakarta 12190, Indonesia

Vietnam
In association with

Maybank Kim Eng Securities

USA Inc
777 Third Avenue, 21st Floor
New York, NY 10017, U.S.A.
Tel: (212) 688 8886
Fax: (212) 688 3500

Tel: (62) 21 2557 1188

Fax: (62) 21 2557 1189

New York

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

Saudi Arabia
In association with

Kim Eng Vietnam Securities

Company
1st Floor, 255 Tran Hung Dao St.
District 1
Ho Chi Minh City, Vietnam

Anfaal Capital
Villa 47, Tujjar Jeddah
Prince Mohammed bin Abdulaziz
Street P.O. Box 126575
Jeddah 21352

Tel : (84) 838 38 66 36

Fax : (84) 838 38 66 39

Tel: (966) 2 6068686

Fax: (966) 26068787

North Asia Sales Trading

Eddie LAU
eddielau@kimeng.com.hk
Tel: (852) 2268 0800
US Toll Free: 1 866 598 2267
www.maybank-ke.com | www.kimengresearch.com.sg

14 January 2013

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