On Our Radar Tracker Review

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Joshua McDonald
5 years ago
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1 On Our Radar Tracker Review Cautious Mode Still On By Cheow Ming Liang l cheowml@kenanga.com.my The market is expected to continue to trade in a cautious mode over the near term while waiting for the new catalyst to emerge. Thus far, there have been no major surprises from the 2QCY17 results season from either the local or US corporates. Besides, we also expect Bank Negara Malaysia and the US FOMC to keep their respective OPR and Federal Fund Rate at 3.00% and % for the remaining months and thus suggesting a stable MYR outlook ahead. All in, our guarded view remains and we continue to advocate investors to adopt a Buy on Weakness strategy on laggard and defensive stocks when the key index dips below 1,750/20. Technically speaking, the underlying market is set to remain upside-bias (after the breakout above the crucial 1,771 resistance which also lifted the MACD back above its Zeroline) with key immediate overhead resistance/support set at 1,789/1,771. Meanwhile, our OR tracker portfolio is outperforming the broader market with total returns of 0.99% in July vs. FBMKLCI s -0.19%. The average returns between realised OR portfolio and unrealised OR tracker since inception of 29.5% still fared better than the FBMKLCI s total return of 24.9% for the same period. A trading month. In the absence of major key catalyst, the local market sentiment continued to stay cautious in July and pulled down the benchmarked/fbmsc Indices by 0.21%/0.97% MoM, respectively. Despite the moderate broad market performance which was well within our expectation, we have leveraged on the softer sentiment and issued a total of three new trading idea pieces with one company update note last month. SUPERLON (FV: RM2.50) was the star performer and gained 17.9% along with FRONTKEN (FV: RM0.43), which climbed 2.7% since being recommended. On the flip side, our Trading Buy calls on ATLAN (FV: RM5.60) and AZRB (FV: RM1.35) did not go well as both companies share prices continued to come under pressure in July and weakened by 3.5%/8.7%, respectively, in line with the weak trading sentiment in the overall broader market. Having said that, we are still confident on both companies in view of their attractive valuations and potential earnings turn-around story. Mixed bag result so far; momentum slowing. The local market recorded its third MoM decline for the year in July with FBMKLCI declining 3.64pts or -0.21% MoM to settle at 1, as the softer performance of telco stocks was not offset by the better gaming counters performance. Axiata, Digi and TM were the key index laggards last month, which cumulatively dampened the benchmark index by 7.35 pts, no thanks to the renewal capital gain tax dispute in Nepal (Axiata), uninspiring 2Q17 result performance ( by Digi) and higher profit-taking activities in TM. On the other hand, the initial findings from the current 2QCY17 result was a mixed bag, of which HUAYANG and LCTITAN s results came in far below expectation. Besides, the high profile multibillion-dollar Bandar Malaysia property development project saw no shortage of interest in the bidding process (which concluded in July), with a stiff contest shaping up between a clutch of seven China s state-owned entities and two Japanese giants (Daiwa House Industry Group and Mitsui Fudosan). The bids received feature development plans valued at between USD7b and USD10.5b, according to Malaysian government officials, and the successful bidder would have a better chance of securing a major role in the KL-Singapore high-speed rail project. Foreign funds flow-wise; while foreigners continued to be upbeat on Malaysia market for the 7 th consecutive month with net inflows totalling RM421m (-45% MoM), the momentum has somehow softened, as witnessed by the 4 th consecutive MoM decrease. On Wall-Street, stocks finished higher for the 4 th consecutive month with DJIA (+2.13% MoM to 21,891.12) continuing to make a record high, fuelled by optimism that growth in both the economy and corporate earnings will continue to gain positive momentum. Still outperforming. With the additional three stocks recommended in July, our OR tracker list with Trading Buy recommendation is now increased to 28 stocks. The average total return for the 99 stocks under the realised portfolio stood at 28%. Together with the 28 stocks in the unrealised portfolio, the average total return for the tracker stocks (since inception in Aug 2012) stood at 29.5% as of end-july, which is higher than the total returns of 24.9% from the FBMKLCI for the same period. VITROX (+188%) remains the top performer under our OR unrealised tracker list, thanks to the strong tech sector rally, followed by ELSOFT (+135%) and GKENT (+133%) while the top three losers, on the other hand, are REACH (-41%), BFOOD (-24%) and PROTASCO (-17%). Meanwhile, PESTECH (+226%), VS (+205%), CAB (+167%) are the top three performers under the realised stocks while K1 (-60%), SAPRES (-36%) and HOHUP (-33%) are the top three losers. PP7004/02/2013(031762) Page 1 of 9

2 On Our Radar Tracker Issued Date ID Price Since ID Price Since ID (%) 31 July 2017 Upside/ Downside Rating Return Since ID (%) incl. dividends July 2017 incl. dividends (since ID) RM (H) (L) (H) (L) RM RM PINTARAS JAYA BHD 15-Aug % % % TB 57.41% -1.95% 16.47% PROTASCO BHD 27-Mar % % % TB % 0.00% -3.05% ECS ICT BHD 11-v % % % TB 14.79% -2.05% 4.20% VITROX CORP BHD 19-Mar % % % TB % 13.15% % XIN HWA HOLDINGS BHD 30-Jun % 0.06% % TB % 0.82% 17.98% LUXCHEM CORP BHD 8-Oct % -7.14% % TB 45.71% 0.00% 46.25% SUCCESS TRANSFORMER CORP BHD 3-v % % % TB 84.52% 1.11% 80.69% BP PLASTICS HOLDING BHD 3-Feb % % % TB % -2.82% 1.37% ELSOFT RESEARCH BHD 17-Feb % % % TB % 11.20% % BERJAYA FOOD BHD 2-Jun % % % TB % % -9.16% YOONG ONN CORP BHD 11-Jul % % % TB 17.94% 9.09% 35.11% V.S. INDUSTRY BERHAD 17-Aug % -6.99% % TB 58.87% 7.08% 60.22% LATITUDE TREE HOLDINGS BHD 8-Sep % -0.22% % TB 16.56% 1.73% 7.96% MY EG SERVICES BHD 27-Sep % -2.67% % TB 45.18% -1.37% 43.39% EITA RESOURCES BHD 29-Sep % % % TB 38.44% -3.26% 57.53% AIRASIA X BHD 30-Sep % -7.79% % TB 1.30% -4.88% 8.33% RCE CAPITAL BHD 4-Oct % -8.40% % TB 29.77% -0.58% 25.00% GEORGE KENT (MALAYSIA) BHD 8-Aug % 2.11% % TB % 4.37% 43.16% ATLAN HOLDINGS BERHAD 13-Oct % % % TB % -7.39% % SASBADI HOLDINGS BHD 5-May % -6.79% % TB 27.84% -0.72% 3.00% SARAWAK OIL PALMS BERHAD 28-Oct % -3.09% % TB 3.77% 0.56% -1.35% REACH ENERGY BHD 1-v % % % TB % -7.69% % SCICOM (MSC) BHD 1-v % -4.17% % TB 6.06% -3.04% 6.54% NEW HOONG FATT HOLDINGS BHD 1-Dec % -0.64% % TB 29.07% -8.55% 25.08% GABUNGAN AQRS BHD 16-May % 0.00% % TB 17.69% 17.69% 69.06% AHMAD ZAKI RESOURCES BERHAD 4-Jul % -3.51% % TB -3.51% -3.51% -3.51% SUPERLON HOLDINGS BHD 12-Jul % 0.00% % TB 17.94% 17.94% 17.94% FRONTKEN CORP BHD 20-Jul % 0.00% % TB 2.74% 2.74% 2.74% Simple Average 52.07% % 34.59% 0.99% 27.03% YTD-July 2017 incl. dividends (since ID) PP7004/02/2013(031762) Page 2 of 9

3 Portfolio ID Price Since ID Price Since ID (%) SELL Rating Report Date RM (H) (L) (H) (L) RM RM % RM (%) (%) GRAND-FLO BHD 18-Sep % -2.22% 6-Dec (0.005) -2.2% TS SKP RESOURCES BHD 25-Sep % 0.00% 20-v % Take Profit SCIENTEX BHD 5-Oct % 0.00% 19-Oct % Take Profit TRADEWINDS CORP BHD 9-Aug % 0.00% 20-Sep % Take Profit TOMEI CONSOLIDATED BHD 13-Sep % -9.72% 18-Dec (0.045) -6.3% TS MK LAND HOLDINGS BHD 7-Aug % % 29-Jan (0.060) -15.4% TS I-BHD 27-v % % 22-Jan (0.032) -2.1% TS ADVENTA BHD 22-v % % 15-Jan (0.059) -10.1% Take Profit TOMYPAK HOLDINGS 11-Oct % 0.00% 7-Mar % Take Profit SMRT HOLDINGS BHD 16-Aug % -9.09% 12-Mar (0.020) -9.1% TS POWER ROOT BHD 14-Aug % 0.00% 14-Mar % Take Profit BONIA CORP BHD 6-Sep % % 19-Mar (0.426) -17.3% TS GUAN CHONG BHD 11-Sep % % 21-Mar (0.245) -11.8% TS TAMBUN INDAH LAND BHD 16-Apr % -4.62% 18-Jun % Take Profit SPRITZER BHD 30-Apr % 0.00% 4-Jul % Take Profit GABUNGAN AQRS BHD 28-Mar % -7.81% 9-Jul % Take Profit MY EG SERVICES BHD 21-May % -6.52% 11-Jul % Take Profit LBS BINA GROUP BHD 23-May % 0.00% 16-Jul % Take Profit POWER ROOT BHD 9-May % 0.00% 25-Jul % Take Profit GHL SYSTEMS BERHAD 25-Jun % % 22-Aug % Take Profit OCK GROUP BHD 20-Dec % 0.00% 27-Aug % TS UEM EDGENTA BHD 27-Sep % -1.55% 29-Aug % Take Profit HOVID BHD 30-Oct % % 24-Oct % Take Profit THONG GUAN INDUSTRIES BHD 16-Oct % -4.62% 19-v % Take Profit ENGTEX GROUP BHD 12-Sep % 0.00% 21-v % Take Profit ZHULIAN CORP BHD 11-Apr % -8.25% 5-Sep % Take Profit COCOALAND HOLDINGS BHD 9-Oct % % 10-Dec (0.387) -14.8% TS YOONG ONN CORP BHD 29-Oct % 0.00% 24-Dec % Take Profit PESTECH INTERNATIONAL BHD 26-Feb % -1.69% 20-Feb % Outperform DAYA MATERIALS BHD 13-Aug % % 6-Mar % TS MKH BHD 26-Dec % 0.77% 22-Apr % Take Profit GADANG HOLDINGS BHD 16-May % -6.63% 24-Apr % Take Profit HARBOUR-LINK GROUP BHD 17-Feb % -4.22% 17-Jun % Take Profit BERJAYA FOOD BHD 3-Oct % % 22-May (0.133) -8.0% t Rated GLOBETRONICS TECHNOLOGY 17-Oct % -1.32% 8-Jul % Take Profit SCGM BHD 1-Apr % 0.00% 10-Jul % Take Profit SKP RESOURCES BHD 26-Jun % 0.00% 31-Jul % Take Profit I-BHD 10-Jun % -1.19% 14-Aug % Take Profit INARI AMERTRON BHD 17-Dec % -3.77% 19-Aug % Take Profit ASIA FILE CORP BHD 12-Dec % 0.00% 18-Sep % Take Profit Price Profit (incl. Div.) Profit Last Rating July 2017 Return YTD-July 2017 PP7004/02/2013(031762) Page 3 of 9

4 Portfolio (Continue) ID Price Since ID Price Since ID (%) SELL Rating Report Date RM (H) (L) (H) (L) RM RM % RM (%) (%) TASCO BHD 17-Jan % -4.88% 23-Sep % Take Profit BERMAZ AUTO BHD 16-Jan % 0.00% 30-Sep % Take Profit PRESS METAL BERHAD 9-Sep % % 3-Oct (1.270) -17.4% Outperform MAGNI-TECH INDUSTRIES BHD 1-Jul % -5.05% 9-Oct (0.130) -4.1% t Rated RUBBEREX CORP M BHD 26-v % % 21-Oct (0.157) -19.5% t Rated ENCORP BHD 6-Aug % % 23-Oct % t Rated FIBON BHD 10-Sep % 0.00% 20-v % t Rated DELEUM BERHAD 25-Sep % % 27-Jan (0.500) -22.3% TS GLOBAL ORIENTAL BHD 4-Jun % -4.85% 29-Jan % TS SBC CORPORATION BHD 20-Jun % % 29-Jan % TS GLOMAC BHD 29-Apr % % 29-Jan (0.060) -5.4% TS TITIJAYA LAND BHD 24-Jun % % 29-Jan (0.411) -17.2% TS GUOCOLAND MALAYSIA BHD 7-Aug % % 29-Jan (0.422) -24.0% TS ISKANDAR WATERFRONT CITY 12-Aug % % 29-Jan (0.240) -14.9% TS MK LAND HOLDINGS BHD 28-Aug % % 29-Jan (0.028) -5.8% TS MY EG SERVICES BHD 28-Aug % % 12-Feb % Take Profit KSL HOLDINGS BHD 21-Aug % % 17-Feb % Outperform PUBLIC PACKAGES HOLDINGS 22-Jul % % 10-Mar (0.160) -16.8% t Rated V.S. INDUSTRY BERHAD 7-Jan % -7.89% 12-Mar % Take Profit LONDON BISCUITS BHD 15-May % % 17-Mar (0.110) -12.0% TS YEE LEE CORPORATION 27-May % 0.90% 24-Mar % Take Profit MITRAJAYA HOLDINGS BHD 6-May % 0.00% 24-Jun % Outperform PIE INDUSTRIAL BHD 18-Apr % -6.24% 9-Jul % Take Profit EKOVEST BHD 31-Oct % % 10-Jul (0.223) -8.1% TS KELINGTON GROUP BHD 13-Jun % % 11-Jul (0.006) -1.1% TS K-ONE TECHNOLOGY BHD 22-Jan % % 1-Sep (0.308) -60.4% Fairly Valued MAGNI-TECH INDUSTRIES BHD 6-Aug % % 29-Oct % Take Profit SKP RESOURCES BHD 20-Oct % -7.04% 10-Dec (0.080) -5.6% Take Profit DOLPHIN INTERNATIONAL BHD 9-Jun % % 23-Jun (0.080) -11.8% TS SAPURA RESOURCES BHD 16-v % % 29-Jun (0.592) -36.5% TS SUNWAY CONSTRUCTION GROUP 28-Jul % % 30-Jun (0.015) -1.3% Outperform SUPERLON HOLDINGS BHD 11-Feb % -1.70% 19-Jul % Take Profit KERJAYA PROSPEK GROUP BHD 20-Jul % -6.78% 14-Oct (0.030) -1.3% Outperform MRCB-QUILL REIT 30-Sep % % 8-v % Take Profit PESONA METRO HOLDINGS 3-v % 0.00% 11-v % Take Profit PROLEXUS BHD 27-Jul % % 23-v (0.605) -23.0% t Rated TASCO BHD 18-May % % 27-Dec (0.495) -24.0% t Rated APOLLO FOOD HOLDINGS BHD 19-Jan % % 19-Jan (0.324) -5.8% t Rated DAGANG NEXCHANGE BHD 7-Dec % 0.00% 9-Jan % Take Profit HARBOUR-LINK GROUP BHD 18-Jun % % 7-Feb (0.319) -27.0% t Rated Price Profit (incl. Div.) Profit Last Rating July 2017 Return YTD-July 2017 PP7004/02/2013(031762) Page 4 of 9

5 Portfolio (Continue) ID Price Since ID Price Since ID (%) SELL Rating Report Date RM (H) (L) (H) (L) RM RM % RM (%) (%) HO HUP CONSTRUCTION CO BHD 31-Dec % % 16-Feb (0.405) -32.7% t Rated PELIKAN INTERNATIONAL CORP 8-Oct % % 14-Feb (0.295) -24.4% t Rated SUNSURIA BHD 9-Jun % % 14-Feb % Outperform PWF CONSOLIDATED BHD 15-Jan % % 10-Mar % t Rated HENG HUAT RESOURCES GROUP 20-Jan % 0.00% 11-Apr % t Rated SALUTICA BHD 18-May % -6.06% 19-Apr % N.A. t Rated CENTURY LOGISTICS HOLDINGS 18-May % % 19-Apr % N.A. t Rated MNRB HOLDINGS BHD 14-Oct % % 20-Apr (0.030) -1.1% t Rated CAB CAKARAN CORP BHD 3-Mar % -3.76% 26-Apr % t Rated KIM LOONG RESOURCES BHD 29-Jun % -6.18% 11-May % Take Profit MMS VENTURES BHD 12-May % % 18-May % t Rated KESM INDUSTRIES BHD 9-Aug % % 25-May % Outperform POWER ROOT BHD 21-Jul % % 25-May % Outperform UNITED U-LI CORP BHD 7-Apr % 27.72% 25-May % Outperform KIM TECK CHEONG CONSOL. 23-v % 0.00% 6-Jun % t Rated KNM GROUP BHD 12-Apr % % 13-Jun (0.225) -45.5% t Rated JAKS RESOURCES BHD 6-Oct % % 16-Jun % t Rated HEKTAR REAL ESTATE INVEST. 25-Jun % -1.33% 20-Jun % t Rated EA TECHNIQUE M BHD 12-v % % 29-Jun (0.929) -68.3% t Rated Price Profit (incl. Div.) Profit Last Rating July 2017 Return YTD-July 2017 Simple Average 28.0% OR Portfolio Average Return 29.46% FBMKLCI Index 1, , % -6.94% 1, , FBMKLCI Capital Gain 6.91% -0.19% 7.21% FBMKLCI Return 24.88% -0.19% 8.93% OUERFORM/(UNDERPERFORM) 4.58% 1.18% 18.10% PP7004/02/2013(031762) Page 5 of 9

6 t Rated Portfolio ID Price Since ID Price Since ID (%) 31 Jluy 2017 RM (H) (L) (H) (L) RM RM (%) RM DAIBOCHI PLASTIC & PACKAGING 1-v % % % % t Rated TH HEAVY ENGINEERING BHD 23-Aug % % % % FV TSR CAPITAL BHD 30-Aug % % % % FV FREIGHT MANAGEMENT HOLDINGS 3-Jan % 0.00% % % t Rated MALAYSIAN BULK CARRIERS BHD 10-Jan % % % % t Rated O.S.K. HOLDINGS BHD 5-Feb % -4.79% % % t Rated TOMEI CONSOLIDATED BHD 4-Apr % % % % t Rated UNIMECH GROUP BHD 25-Apr % % % % FV DELEUM BERHAD 14-May % % % % t Rated FIBON BHD 30-May % 0.00% % % t Rated TMC LIFE SCIENCES BHD 24-Sep % -9.76% % % t Rated GHL SYSTEMS BERHAD 8-Oct % -5.81% % % t Rated SALCON BHD 22-Oct % % % % t Rated KHIND HOLDINGS BERHAD 21-Jan % % % % t Rated LYSAGHT GALVANIZED STEEL BHD 13-Mar % -2.87% % % t Rated HOMERITZ CORP BHD 8-Apr % % % % t Rated HWANG CAPITAL MALAYSIA BHD 17-Apr % % % % t Rated SCC HOLDINGS BHD 17-Jul % % % % t Rated BERJAYA FOOD BHD 2-Sep % % % % t Rated I-BHD 8-Sep % % % % t Rated GUH HOLDINGS BHD 18-v % % % % t Rated BRAHIM'S HOLDINGS BERHAD 8-Jan % % % % t Rated TEK SENG HOLDINGS BHD 13-Jan % % % % t Rated KANGER INTERNATIONAL BHD 24-Feb % % % % t Rated MCT BHD 9-Apr % % % % t Rated FITTERS DIVERSIFIED BHD 14-Apr % % % % t Rated ORIENTAL FOOD INDUST HLDGS 16-Apr % -0.04% % % t Rated PARAMOUNT CORP BHD 23-Apr % % % % t Rated LCTH CORP BHD 28-Apr % % % % t Rated SENTORIA GROUP BHD 14-May % % % % t Rated HOVID BHD 26-May % % % % t Rated MIKRO MSC BHD 28-May % % % % t Rated JCY INTERNATIONAL BHD 2-Jun % % % % t Rated WEIDA M BHD 4-Jun % % % % t Rated PRESTARIANG BHD 16-Jun % % % % t Rated CARING PHARMACY GROUP BHD 14-Jul % -8.70% % % t Rated FIAMMA HOLDINGS BERHAD 16-Jul % % % % t Rated FAVELLE FAVCO BHD 23-Jul % % % % t Rated Upside/ Downside Rating PP7004/02/2013(031762) Page 6 of 9

7 n-rated Portfolio (Continue) ID Price Since ID Price Since ID (%) 31 Jluy 2017 RM (H) (L) (H) (L) RM RM (%) RM HUP SENG INDUSTRIES BHD 11-Aug % -8.00% % % t Rated DAGANG NEXCHANGE BHD 18-Aug % -7.40% % % t Rated KAWAN FOOD BHD 20-Aug % -6.05% % % t Rated IFCA MSC BHD 8-Aug % % % % t Rated AL-SALAM REAL ESTATE INVESTM 15-Sep % % % % t Rated NM HOLDINGS BHD 21-Sep % % % % t Rated SCOMI ENERGY SERVICES BHD 22-Sep % % % % t Rated KAREX BHD 15-Oct % % % % t Rated TANAH MAKMUR BHD 13-Oct % -5.11% % % t Rated V.S. INDUSTRY BERHAD 27-Oct % % % % t Rated WELLCALL HOLDINGS BHD 22-Oct % % % % t Rated TEX CYCLE TECHNOLOGY 16-Dec % % % % t Rated LATITUDE TREE HOLDINGS BHD 13-Jan % % % % t Rated LII HEN INDUSTRIES BHD 13-Jan % % % % t Rated POH HUAT RESOURCES HLDGS BHD 13-Jan % % % % t Rated SHH RESOURCES HOLDINGS BHD 13-Jan % % % % t Rated GADANG HOLDINGS BHD 21-Jan % % % % t Rated KERJAYA PROSPEK GROUP BHD 26-Jan % -4.09% % % t Rated ELEVEN MALAYSIA HOLDINGS B 28-Jan % % % % t Rated PETRON MALAYSIA REFINING & M 24-Feb % % % % t Rated MSM MALAYSIA HOLDINGS BHD 23-Mar % -8.74% % % t Rated CHIN HIN GROUP BHD 30-Mar % -8.09% % % t Rated SCGM BHD 6-Apr % -8.31% % % t Rated EVERGREEN FIBREBOARD BHD 13-Apr % % % % t Rated PECCA GROUP BHD 19-Apr % 5.63% % % t Rated ECONPILE HOLDINGS BHD 26-Apr % -3.73% % % t Rated SPRITZER BHD 11-May % % % % t Rated PETRA ENERGY BHD 17-May % % % % t Rated PECCA GROUP BHD 16-Jun % % % % t Rated MALAYSIAN BULK CARRIERS BHD 4-Jul % % % % t Rated BISON CONSOLIDATED BHD 28-Jul % -0.68% % % t Rated ENGTEX GROUP BHD 6-Sep % % % % t Rated AHB HOLDINGS BHD 13-Sep % % % % t Rated FEDERAL FURNITURE HLDGS (M) 23-Sep % % % % t Rated TIONG NAM LOGISTICS HOLDINGS 20-Oct % -5.52% % % t Rated CCM DUOPHARMA BIOTECH BHD 15-v % -9.43% % % t Rated AL-'AQAR HEALTHCARE REAL EST 5-Dec % -8.54% % % t Rated HONG LEONG INDUSTRIES BHD 20-Dec % -1.38% % % t Rated Upside/ Downside Rating PP7004/02/2013(031762) Page 7 of 9

8 n-rated Portfolio (Continue) ID Price Since ID Price Since ID (%) 31 Jluy 2017 RM (H) (L) (H) (L) RM RM (%) RM KUB MALAYSIA BHD 25-Jan % 0.00% % % t Rated SEG INTERNATIONAL BHD 3-Jan % -6.96% % % t Rated SERBA DINAMIK HOLDINGS BHD 8-Feb % 0.00% % % t Rated HEVEABOARD BHD 2-Mar % % % % t Rated GHL SYSTEMS BERHAD 28-Mar % -4.35% % % t Rated HSS ENGINEERS BHD 19-Apr % % % N.A. N.A. t Rated KAWAN FOOD BHD 27-Apr % 0.00% % % t Rated ISKANDAR WATERFRONT CITY BHD 28-Apr % % % % t Rated Upside/ Downside Rating This section is intentionally left blank. PP7004/02/2013(031762) Page 8 of 9

9 Stock Ratings are defined as follows: Stock Recommendations OUERFORM : A particular stock s Expected Return is MORE than 10% MARKET PERFORM : A particular stock s Expected Return is WITHIN the range of -5% to 10% UNDERPERFORM : A particular stock s Expected Return is LESS than -5% Sector Recommendations*** OVERWEIGHT : A particular sector s Expected Return is MORE than 10% NEUTRAL : A particular sector s Expected Return is WITHIN the range of -5% to 10% UNDERWEIGHT : A particular sector s Expected Return is LESS than -5% ***Sector recommendations are defined based on market capitalisation weighted average expected total return for stocks under our coverage. This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies. Published and printed by: KENANGA INVESTMENT BANK BERHAD (15678-H) Level 12, Kenanga Tower, 237, Jalan Tun Razak, Kuala Lumpur, Malaysia Telephone: (603) Website: research@kenanga.com.my Chan Ken Yew Head of Research PP7004/02/2013(031762) Page 9 of 9

On Our Radar Tracker Review

On Our Radar Tracker Review Into a Traditionally Tough Quarter By Cheow Ming Liang l cheowml@kenanga.com.my As we are march on to the traditionally tougher third quarter (based upon our seasonality study),