Market Dateline PP 7767/09/2010(025354)

RHB Research Institute

RHB Equity 360

18 June 2010 (Gaming, AFG, Sunway, SP Setia; Technical: Petra Perdana)

Top Story : Gaming: Positive Outlook from G2E Asia Conference Overweight
Sector Update
- Last week, we attended the G2E Asia gaming conference in Macau, which is an annual conference
focused on the trends and prospects in the Asian gaming market and the players behind it. The first day of
the conference focused on the economic and regulatory issues in those Asian gaming jurisdictions beyond
Macau, while the second day featured analysis on topics ranging from table games and non-gaming
amenities to VIP play.
- Four key highlights. We summarise some of the more interesting presentations from the conference into
five main points: (1) Regional opportunities for expansion hotting up - through government liberalisation in
markets like Japan, Taiwan, Korea, Vietnam, Thailand and India. Out of the six countries, we believe the
country which is closest to liberalisation of gaming policies and the most exciting is Japan; (2) More
competition coming onstream soon particularly from Philipinnes coming from the development of the
Bagong Nayong Pilipino Manila Bay Integrated City, where four IRs will be set up within the next few years;
(3) Singapore market seen as good example of liberalisation given good corporate governance and
seemingly successful results seen so far; and (4) Macau operators still expanding despite tighter controls
which shows confidence on positive long-term prospects for the gaming industry and its main target
market, China.
- All in, we believe the conference served to confirm our bullish view on the regional gaming market and on
Genting Singapore (GS). We continue to be positive on GS prospects as we believe the strength of the
whole package that RWS is offering will drive visitor numbers and casino patronage strongly at least for the
first few years, especially in view of it being a family destination and the novelty factor, while riding on
Singapores anticipated tourism-led economic recovery.
- No change to our forecasts and our Overweight on sector. No change to the recommendations of
Outperform for Genting (FV = RM8.95), Genting Singapore (FV = S$1.35) and BToto (FV = RM4.95); and
Market Perform for Genting Malaysia (FV = RM2.90).

Corporate Highlights

AFG: New Group CEO Appointed Outperform

News update
- AFG announced yesterday that it had appointed Sng Seow Wah, a Singaporean, as its new group CEO
following approval from BNM.
- This appointment does not come as a surprise as press reports last month had already identified Sng as a
replacement for Datuk Bridget Lai.
- Although it has been business as usual for the group, nevertheless, the appointment of Sng would help
address the leadership issue and, we believe, help take the group to the next level.
- No change to our earnings forecasts.
- Fair value of RM3.47 (15x CY10 EPS) and Outperform call maintained.

Sunway : To Venture Into Property Development In Sri Lanka Outperform

News Update
- Sunway has entered into an MOU to develop a 34-storey commercial-cum-residential property in Colombo
city, Sri Lanka, with a GDV of US$78m (RM250m).
- On one hand, we acknowledge the growth potential of the property market in Sri Lanka. On the other
hand, we believe country risk should not be taken out of the equation.
- Forecasts are maintained as the venture is still at fairly preliminary stage, i.e. feasibility studies and market
research.
- Fair value is RM1.69. Maintain Outperform.
 SP Setia : 1HFY10/10 Net Profit Grows 25% YoY Market Perform
Results Note
- 1HFY10/10 net profit came in within expecatations.
- 1HFY10/10 property sales jumped 42% yoy to RM1.21bn.
- For 7MFY10/10, cumulative property sales already hit RM1.44bn. This means SP Setia is very much on
track to meet its FY10/10 sales target of RM2bn.
- Fair value is RM4.66. Maintain Market Perform.

Technical Highlights

Daily Trading Strategy: Negatively Biased View Maintained

- Instead of turning lower on the previous gravestone doji candle, the FBM KLCI held up at above the 1,300
key level and extended its recovery for the eighth day yesterday.
- As the index registered a muted doji-like candle on the chart, uncertainty remains for the near term as the
index struggles to collect a confirmation positive candle.
- But technically, without a convincing removal of the 40-day SMA near 1,311 in the short term, investors are
unlikely to commit more resources in the current market scenario.
- Only if it can remove the 40-day SMA, will it have a fresh chance to retest the next major technical obstacle
at 1,350.
- On the other hand, a fall to below the 1,300 level and the 10-day SMA of 1,295 will turn the technical outlook
negative, hence pressing the index lower to another round of selling mode ahead.
- As a result, we maintain our negatively biased technical outlook on the local market and continue to suggest
sell into strength for the medium-term strategy.

Daily Technical Watch: Petra Perdana Another challenge to RM1.78 if it sustains at above the 40-day SMA

- 10-day SMA: RM1.232
- 40-day SMA: RM1.30
- Support: IS = RM1.20
- Resistance: IR = RM1.78 R1 = RM2.20 R2 = RM2.40

Bulletin Board

Co/Sector News Impact Recom

Banking BNM has issued 5 new licences to foreign banks,
i.e. Frances BNP Paribas, Japans Mizuho
Corporate Bank and Sumitomo Mitsui Banking
Corp, Indonesias PT Bank Mandiri and UAEs
National Bank of Abu Dhabi. (Business Times)
We believe that the local banks are already OW
competitive and would still be able to thrive under
a competitive environment. Moreover, these
banks are expected to serve niche segments,
e.g. green technology and infrastructure finance.

Important Dates

Company Entitlement details Ex-date Payment date

New entitlements
UMW Holdings Final single-tier dividend of 9 sen 20-Jul-10 10-Aug-10
S P Setia Interim dividend of 6 sen less 25% tax 5-Jul-10 28-Jul-10

Going ex on 21 Jun
Malayan Flour Mill Final div of 5 sen + special div of 10 sen, less 25% tax 21-Jun-10 5-Jul-10
White Horse Final tax-exempt dividend of 5 sen 21-Jun-10 8-Jul-10
 Chemical Co of Malaysia Final tax exempt dividend of 8 sen 21-Jun-10 9-Jul-10
Keck Seng (M) Final dividend of 6 sen tax exempt 21-Jun-10 12-Jul-10

...For more details, see individual reports attached

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