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), we should take a more cautious view and adopt a Buy on Weakness strategy on laggard and defensive stocks when the key index dips below 1,735. Having said that, the local equity market is still expected to remain buoyant, at least in the near term. We have revised our year-end FBMKLCI target to 1,845 (from 1,775 previously) post the 1QCY17 earnings review. Technically speaking, the underlying market is set to remain upside-bias after staging a breakout form its consolidation channel recently with key overhead resistance/support set at 1,800/1,760. Meanwhile, our OR tracker portfolio is underperforming the broader market with total returns of -1.9% in May vs. FBMKLCI s +0.52%. The average returns between realised OR portfolio and unrealised OR tracker since inception of 29.4% still better than the FBMKLCI s total return of 25.1% for the same period. A busy month. We had a busy month in May as we released a total of eight Mid-and- Small Cap pieces, of which four were featured under the Bursa s Mid-and-Small ( MidS ) scheme. VITROX (FV: RM7.16) and GBGAQRS (FV: RM1.51) were the only two Trading Buy reports recommended under our traditional On Our Radar series in May while we downplayed MMSV and KIM LOONG after they already recorded handsome 154%/18% total returns resulting in limited capital upside. Meanwhile, on top of A&M (: RM3.00), we also reshuffled KESM (: RM15.20), ULICORP (: RM5.60) and PWROOT (: RM2.90) out from the tracker list to the full-fledge coverage universe under the MidS scheme. In view of the potential 14%- 79% total returns over the next 12-month, we have assigned OUERFORM call to all the stocks under the MidS scheme. Decent quarterly results but momentum slowing. The local market recorded its first MoM decline for the year in May with FBMKLCI declining 2.05 pts or -0.12% MoM to settle at 1,765.87 as the softer performance of Telco's stocks were not offset by the better banking counters performance, mainly driven by the latest decent quarterly result as well as M&A news. On the other hand, the recent concluded 1QCY17 results reporting season continued to show signs of improvement given that the disappointment ratio has narrowed to 22.6% (vs. 27.6% in 4Q16 and 34.4% in 3Q16). However, the momentum of this improving trend is showing sign of weakness as merely 13.4% (or 19 stocks) reported better-than-expected report cards in contrast to 25.4% (or 34 stocks) in the preceding quarter. Foreign funds flow-wise; while foreigners continued to be upbeat on Malaysia's market for the 5 th consecutive month with net inflows totalling RM1.47b (-44% MoM), the momentum has somehow softened, as witnessed by the 3 rd consecutive MoM decrease. On Wall-Street, stocks finished higher for the month with DJIA (+0.33% MoM) continuing to stay above 21,000-mark, fuelled by optimism that growth in both the economy and corporate earnings will continue to gain positive momentum. Overall tracker performance remains decent. With the removal of two stocks mentioned above from the tracker list, our OR tracker list with Trading Buy recommendation is now reduced to 30 stocks. Together with 94 stocks in the realised portfolio, the average total return for the tracker stocks (+27.1%) and realised portfolio (+29.0%) since inception in Aug 2012 is 28.6%, which is higher than the total returns of 25.1% from the FBMKLCI for the same period. Xin Hwa (+121%) is the top performer under our OR unrealised tracker list followed by GKENT (+109%) and ELSOFT (+108%) while the top three losers, on the other hand, are EATECH (-62%), KNM (-43%) and REACH (-28%). 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

On Our Radar Tracker Issued Date ID Price Since ID Price Since ID (%) 31 May 2017 Upside/ Downside Rating Return Since ID (%) incl. dividends May 2017 incl. dividends (since ID) RM (H) (L) (H) (L) RM RM 1 9598 PINTARAS JAYA BHD 15-Aug-13 3.080 4.850 2.620 57.47% -14.94% 3.900 4.200 7.7% TB 49.74% 8.33% 10.80% 2 5070 PROTASCO BHD 27-Mar-14 1.520 1.704 0.975 12.11% -35.86% 1.010 1.520 50.5% TB -21.65% -7.34% -8.44% 3 5162 ECS ICT BHD 11-v-14 1.450 1.780 1.040 22.76% -28.28% 1.480 1.670 12.8% TB 18.80% -1.32% 7.84% 4 0097 VITROX CORP BHD 19-Mar-15 3.290 6.810 2.770 106.99% -15.81% 6.490 7.160 10.3% TB 103.77% 12.28% 74.93% 5 5121 HEKTAR REAL ESTATE INVESTMEN 25-Jun-15 1.500 1.700 1.480 13.33% -1.33% 1.500 1.570 4.7% TB 12.45% -6.25% -2.21% 6 5267 XIN HWA HOLDINGS BHD 30-Jun-15 0.583 1.390 0.583 138.42% 0.06% 1.270 1.020-19.7% TB 120.98% -2.31% 25.95% 7 4723 JAKS RESOURCES BHD 6-Oct-15 1.140 1.720 0.825 50.88% -27.63% 1.550 1.530-1.3% TB 35.96% -6.63% 51.96% 8 5143 LUXCHEM CORP BHD 8-Oct-15 1.540 1.880 1.430 22.08% -7.14% 1.680 1.850 10.1% TB 17.12% 7.69% 17.56% 9 7207 SUCCESS TRANSFORMER CORP BHD 3-v-15 2.060 4.230 1.640 105.34% -20.39% 3.800 2.800-26.3% TB 92.10% 4.97% 88.12% 10 5259 EA TECHNIQUE M BHD 12-v-15 1.350 1.380 0.450 2.22% -66.67% 0.500 1.670 234.0% TB -62.25% -20.00% -19.35% 11 0180 KIM TECK CHEONG CONSOLIDATED 23-v-15 0.150 0.450 0.150 200.00% 0.00% 0.260 0.240-7.7% TB 73.33% -10.34% 8.33% 12 5100 BP PLASTICS HOLDING BHD 3-Feb-16 1.780 1.890 1.350 6.18% -24.16% 1.400 2.150 53.6% TB -15.58% -2.10% 1.41% 13 0090 ELSOFT RESEARCH BHD 17-Feb-16 1.273 2.670 0.933 109.74% -26.68% 2.460 1.900-22.8% TB 108.34% 9.33% 77.24% 14 7164 KNM GROUP BHD 12-Apr-16 0.495 0.515 0.280 4.04% -43.43% 0.280 0.570 103.6% TB -43.43% -3.45% -17.65% 15 5196 BERJAYA FOOD BHD 2-Jun-16 1.880 1.980 1.270 5.32% -32.45% 1.550 2.300 48.4% TB -15.85% -10.92% -0.08% 16 5159 YOONG ONN CORP BHD 11-Jul-16 1.270 1.370 1.070 7.87% -15.75% 1.180 1.500 27.1% TB -5.50% -4.07% 8.26% 17 6963 V.S. INDUSTRY BERHAD 17-Aug-16 1.430 2.050 1.330 43.36% -6.99% 1.950 1.730-11.3% TB 39.76% -2.50% 40.95% 18 7006 LATITUDE TREE HOLDINGS BHD 8-Sep-16 4.650 5.790 4.640 24.52% -0.22% 5.240 5.450 4.0% TB 15.46% -0.19% 6.94% 19 0138 MY EG SERVICES BHD 27-Sep-16 1.500 2.300 1.460 53.33% -2.67% 2.120 2.800 32.1% TB 42.49% -0.47% 40.74% 20 5208 EITA RESOURCES BHD 29-Sep-16 1.320 2.070 1.120 56.82% -15.15% 1.860 1.480-20.4% TB 43.11% -4.62% 62.85% 21 5238 AIRASIA X BHD 30-Sep-16 0.385 0.535 0.355 38.96% -7.79% 0.400 0.490 22.5% TB 3.90% -11.11% 11.11% 22 9296 RCE CAPITAL BHD 4-Oct-16 1.310 1.910 1.200 45.80% -8.40% 1.740 1.500-13.8% TB 32.82% 1.75% 27.94% 23 3204 GEORGE KENT (MALAYSIA) BHD 8-Aug-16 1.896 4.400 1.936 132.07% 2.11% 3.910 2.800-28.4% TB 109.81% -9.70% 28.62% 24 7048 ATLAN HOLDINGS BERHAD 13-Oct-16 4.850 4.990 4.750 2.89% -2.06% 4.750 4.850 2.1% TB -0.05% -2.66% -0.87% 25 5252 SASBADI HOLDINGS BHD 5-May-15 1.105 1.610 1.030 45.70% -6.79% 1.380 1.380 0.0% TB 28.78% -10.37% 3.75% 26 5126 SARAWAK OIL PALMS BERHAD 28-Oct-16 3.498 4.000 3.390 14.35% -3.09% 3.570 4.560 27.7% TB 2.05% 4.08% -2.99% 27 5256 REACH ENERGY BHD 1-v-16 0.710 0.735 0.505 3.52% -28.87% 0.510 0.890 74.5% TB -28.17% -10.53% -20.31% 28 0099 SCICOM (MSC) BHD 1-v-16 2.160 2.400 2.070 11.11% -4.17% 2.350 2.450 4.3% TB 10.82% -2.08% 11.32% 29 7060 NEW HOONG FATT HOLDINGS BHD 1-Dec-16 3.140 4.230 3.120 34.71% -0.64% 4.130 3.780-8.5% TB 31.53% 2.48% 27.47% 30 5226 GABUNGAN AQRS BHD 16-May-17 1.300 1.450 1.300 11.54% 0.00% 1.440 1.510 4.9% TB 10.77% 10.77% 59.12% Simple Average 47.31% -15.35% 27.05% -2.24% 20.71% YTD-May 2017 incl. dividends (since ID) PP7004/02/2013(031762) Page 2 of 9

Portfolio ID Price Since ID Price Since ID (%) SELL Rating Report Date RM (H) (L) (H) (L) RM RM % RM (%) (%) 1 0056 GRAND-FLO BHD 18-Sep-12 0.225 0.25 0.22 8.89% -2.22% 6-Dec-12 0.220 (0.005) -2.2% 0.230 TS 2 7155 SKP RESOURCES BHD 25-Sep-12 0.345 0.40 0.35 14.49% 0.00% 20-v-12 0.370 0.051 14.8% 0.390 Take Profit 3 4731 SCIENTEX BHD 5-Oct-12 2.540 3.08 2.54 21.26% 0.00% 19-Oct-12 3.000 0.490 19.3% 3.030 Take Profit 4 4804 TRADEWINDS CORP BHD 9-Aug-12 0.740 1.01 0.74 36.49% 0.00% 20-Sep-12 1.010 0.270 36.5% 1.100 Take Profit 5 7230 TOMEI CONSOLIDATED BHD 13-Sep-12 0.720 0.78 0.65 8.33% -9.72% 18-Dec-12 0.680 (0.045) -6.3% 0.675 TS 6 8893 MK LAND HOLDINGS BHD 7-Aug-12 0.390 0.43 0.32 8.97% -17.95% 29-Jan-13 0.320 (0.060) -15.4% 0.360 TS 7 4251 I-BHD 27-v-12 1.500 1.50 1.30 0.00% -13.33% 22-Jan-13 1.330 (0.032) -2.1% 1.400 TS 8 7191 ADVENTA BHD 22-v-12 0.590 0.65 0.34 10.17% -42.37% 15-Jan-13 0.340 (0.059) -10.1% 0.340 Take Profit 9 7285 TOMYPAK HOLDINGS 11-Oct-12 1.100 1.31 1.10 19.09% 0.00% 7-Mar-13 1.270 0.202 18.3% 1.300 Take Profit 10 0117 SMRT HOLDINGS BHD 16-Aug-12 0.220 0.32 0.20 43.18% -9.09% 12-Mar-13 0.200 (0.020) -9.1% 0.200 TS 11 7237 POWER ROOT BHD 14-Aug-12 0.900 1.51 0.90 67.78% 0.00% 14-Mar-13 1.520 0.625 69.5% 1.480 Take Profit 12 9288 BONIA CORP BHD 6-Sep-12 2.460 2.60 2.00 5.69% -18.70% 19-Mar-13 2.000 (0.426) -17.3% 2.170 TS 13 5102 GUAN CHONG BHD 11-Sep-12 2.070 2.07 1.59 0.00% -23.19% 21-Mar-13 1.800 (0.245) -11.8% 1.850 TS 14 5191 TAMBUN INDAH LAND BHD 16-Apr-13 0.975 1.39 0.93 42.56% -4.62% 18-Jun-13 1.360 0.345 35.4% 1.320 Take Profit 15 7103 SPRITZER BHD 30-Apr-13 1.160 1.79 1.16 54.31% 0.00% 4-Jul-13 1.760 0.600 51.7% 1.760 Take Profit 16 5226 GABUNGAN AQRS BHD 28-Mar-13 0.960 1.32 0.89 37.50% -7.81% 9-Jul-13 1.390 0.330 34.4% 1.290 Take Profit 17 0138 MY EG SERVICES BHD 21-May-13 1.380 1.83 1.29 32.61% -6.52% 11-Jul-13 1.840 0.450 32.6% 1.290 Take Profit 18 5789 LBS BINA GROUP BHD 23-May-13 1.050 1.45 1.05 38.10% 0.00% 16-Jul-13 1.430 0.380 36.2% 1.430 Take Profit 19 7237 POWER ROOT BHD 9-May-13 1.830 2.33 1.83 27.32% 0.00% 25-Jul-13 2.220 0.430 23.5% 2.260 Take Profit 20 0021 GHL SYSTEMS BERHAD 25-Jun-13 0.310 0.51 0.28 62.90% -11.29% 22-Aug-13 0.465 0.195 63.0% 0.485 Take Profit 21 0172 OCK GROUP BHD 20-Dec-12 0.450 0.70 0.45 55.56% 0.00% 27-Aug-13 0.610 0.211 46.8% 0.670 TS 22 1368 UEM EDGENTA BHD 27-Sep-12 1.290 2.63 1.27 103.88% -1.55% 29-Aug-13 2.400 1.523 118.1% 2.340 Take Profit 23 7213 HOVID BHD 30-Oct-12 0.240 0.35 0.22 45.83% -10.42% 24-Oct-13 0.345 0.105 43.8% 0.365 Take Profit 24 7034 THONG GUAN INDUSTRIES BHD 16-Oct-12 1.300 1.83 1.24 40.77% -4.62% 19-v-13 1.630 0.400 30.8% 1.630 Take Profit 25 5056 ENGTEX GROUP BHD 12-Sep-13 1.160 1.75 1.16 50.86% 0.00% 21-v-13 1.660 0.520 44.8% 1.680 Take Profit 26 5131 ZHULIAN CORP BHD 11-Apr-13 2.910 3.37 2.67 15.81% -8.25% 5-Sep-13 3.180 0.252 8.7% 3.100 Take Profit 27 7205 COCOALAND HOLDINGS BHD 9-Oct-12 2.610 2.61 2.02 0.00% -22.61% 10-Dec-13 2.160 (0.387) -14.8% 2.230 TS 28 5159 YOONG ONN CORP BHD 29-Oct-13 0.780 0.99 0.78 26.92% 0.00% 24-Dec-13 0.965 0.160 20.5% 1.010 Take Profit 29 5219 PESTECH INTERNATIONAL BHD 26-Feb-13 1.180 3.73 1.16 216.10% -1.69% 20-Feb-14 3.630 2.666 225.9% 4.100 Outperform 30 0091 DAYA MATERIALS BHD 13-Aug-13 0.340 0.45 0.29 32.35% -16.18% 6-Mar-14 0.355 0.020 5.9% 0.355 TS 31 6114 MKH BHD 26-Dec-13 2.600 4.85 2.62 86.54% 0.77% 22-Apr-14 4.820 2.200 84.6% 4.850 Take Profit 32 9261 GADANG HOLDINGS BHD 16-May-13 0.830 1.94 0.78 133.73% -6.63% 24-Apr-14 1.890 1.168 140.7% 2.000 Take Profit 33 2062 HARBOUR-LINK GROUP BHD 17-Feb-14 1.660 1.99 1.59 19.88% -4.22% 17-Jun-14 1.820 0.110 6.6% 2.000 Take Profit 34 5196 BERJAYA FOOD BHD 3-Oct-13 1.670 1.74 1.37 4.19% -17.96% 22-May-14 1.520 (0.133) -8.0% 1.960 t Rated 35 7022 GLOBETRONICS TECHNOLOGY 17-Oct-13 3.040 4.45 3.00 46.38% -1.32% 8-Jul-14 4.390 1.475 48.5% 4.230 Take Profit 36 7247 SCGM BHD 1-Apr-14 1.120 2.36 1.12 110.71% 0.00% 10-Jul-14 2.000 1.052 94.0% 1.540 Take Profit 37 7155 SKP RESOURCES BHD 26-Jun-14 0.490 0.63 0.49 27.55% 0.00% 31-Jul-14 0.590 0.115 23.5% 0.570 Take Profit 38 4251 I-BHD 10-Jun-14 0.834 1.08 0.82 29.33% -1.19% 14-Aug-14 1.099 0.244 29.3% 0.960 Take Profit 39 0166 INARI AMERTRON BHD 17-Dec-13 1.590 3.34 1.53 110.06% -3.77% 19-Aug-14 3.340 1.829 115.1% 3.310 Take Profit 40 7129 ASIA FILE CORP BHD 12-Dec-13 4.280 7.50 4.28 75.23% 0.00% 18-Sep-14 7.280 3.093 72.3% 7.820 Take Profit Price Profit (incl. Div.) Profit Last Rating May 2017 Return YTD-May 2017 PP7004/02/2013(031762) Page 3 of 9

Portfolio (Continue) ID Price Since ID Price Since ID (%) SELL Rating Report Date RM (H) (L) (H) (L) RM RM % RM (%) (%) 41 5140 TASCO BHD 17-Jan-13 2.050 3.62 1.95 76.59% -4.88% 23-Sep-14 3.400 1.550 75.6% 3.230 Take Profit 42 5248 BERMAZ AUTO BHD 16-Jan-14 1.680 3.42 1.68 103.57% 0.00% 30-Sep-14 3.440 1.731 103.1% 3.800 Take Profit 43 8869 PRESS METAL BERHAD 9-Sep-14 7.290 7.37 5.85 1.10% -19.75% 3-Oct-14 6.020 (1.270) -17.4% 8.870 Outperform 44 7087 MAGNI-TECH INDUSTRIES BHD 1-Jul-14 3.170 3.36 3.01 5.99% -5.05% 9-Oct-14 3.110 (0.130) -4.1% 3.820 t Rated 45 7803 RUBBEREX CORP M BHD 26-v-13 0.805 0.81 0.58 0.00% -27.95% 21-Oct-14 0.620 (0.157) -19.5% 0.670 t Rated 46 6076 ENCORP BHD 6-Aug-13 1.160 1.80 0.96 55.17% -17.67% 23-Oct-14 1.350 0.258 22.2% 1.550 t Rated 47 0149 FIBON BHD 10-Sep-13 0.325 0.68 0.33 107.69% 0.00% 20-v-14 0.470 0.160 49.2% 0.475 t Rated 48 5132 DELEUM BERHAD 25-Sep-14 2.240 2.30 1.50 2.68% -33.04% 27-Jan-15 1.740 (0.500) -22.3% 1.650 TS 49 1147 GLOBAL ORIENTAL BHD 4-Jun-13 0.536 0.92 0.51 70.80% -4.85% 29-Jan-15 0.530 0.009 1.7% 0.530 TS 50 5207 SBC CORPORATION BHD 20-Jun-13 0.807 1.62 0.66 100.74% -18.22% 29-Jan-15 0.990 0.253 31.4% 0.970 TS 51 5020 GLOMAC BHD 29-Apr-14 1.100 1.20 0.95 9.09% -14.09% 29-Jan-15 1.000 (0.060) -5.4% 1.050 TS 52 5239 TITIJAYA LAND BHD 24-Jun-14 2.390 2.80 1.59 17.15% -33.47% 29-Jan-15 1.880 (0.411) -17.2% 2.020 TS 53 1503 GUOCOLAND MALAYSIA BHD 7-Aug-14 1.760 2.01 1.07 14.20% -39.20% 29-Jan-15 1.320 (0.422) -24.0% 1.350 TS 54 1589 ISKANDAR WATERFRONT CITY 12-Aug-14 1.610 1.78 1.11 10.56% -31.06% 29-Jan-15 1.360 (0.240) -14.9% 1.420 TS 55 8893 MK LAND HOLDINGS BHD 28-Aug-14 0.480 0.50 0.32 3.13% -34.38% 29-Jan-15 0.430 (0.028) -5.8% 0.390 TS 56 0138 MY EG SERVICES BHD 28-Aug-14 2.800 4.70 2.45 67.86% -12.50% 12-Feb-15 2.490 2.344 83.7% 2.370 Take Profit 57 5038 KSL HOLDINGS BHD 21-Aug-14 3.880 4.87 1.70 25.52% -56.19% 17-Feb-15 2.180 0.524 13.5% 2.760 Outperform 58 8273 PUBLIC PACKAGES HOLDINGS 22-Jul-14 0.950 1.01 0.58 6.32% -39.47% 10-Mar-15 0.790 (0.160) -16.8% 0.980 t Rated 59 6963 V.S. INDUSTRY BERHAD 7-Jan-14 1.520 4.50 1.40 196.05% -7.89% 12-Mar-15 4.410 3.109 204.5% 4.250 Take Profit 60 7126 LONDON BISCUITS BHD 15-May-14 0.915 0.93 0.57 1.64% -38.25% 17-Mar-15 0.790 (0.110) -12.0% 0.830 TS 61 5584 YEE LEE CORPORATION 27-May-13 1.110 1.95 1.12 75.68% 0.90% 24-Mar-15 1.870 0.860 77.5% 1.540 Take Profit 62 9571 MITRAJAYA HOLDINGS BHD 6-May-14 0.750 2.01 0.75 168.00% 0.00% 24-Jun-15 1.910 1.147 153.0% 2.350 Outperform 63 7095 PIE INDUSTRIAL BHD 18-Apr-13 4.650 8.66 4.36 86.24% -6.24% 9-Jul-15 5.580 3.051 65.6% 5.700 Take Profit 64 8877 EKOVEST BHD 31-Oct-13 2.750 2.99 0.99 8.73% -64.18% 10-Jul-15 1.020 (0.223) -8.1% 0.800 TS 65 0151 KELINGTON GROUP BHD 13-Jun-13 0.510 0.63 0.31 22.55% -40.20% 11-Jul-15 0.350 (0.006) -1.1% 0.280 TS 66 0111 K-ONE TECHNOLOGY BHD 22-Jan-15 0.510 0.64 0.19 25.49% -62.75% 1-Sep-15 0.205 (0.308) -60.4% 0.190 Fairly Valued 67 7087 MAGNI-TECH INDUSTRIES BHD 6-Aug-15 4.340 5.86 3.82 35.02% -11.98% 29-Oct-15 5.820 1.520 35.0% 5.150 Take Profit 68 7155 SKP RESOURCES BHD 20-Oct-15 1.420 1.46 1.32 2.82% -7.04% 10-Dec-15 1.350 (0.080) -5.6% 1.760 Take Profit 69 5265 DOLPHIN INTERNATIONAL BHD 9-Jun-15 0.680 0.88 0.60 29.41% -11.76% 23-Jun-16 0.600 (0.080) -11.8% 0.580 TS 70 4596 SAPURA RESOURCES BHD 16-v-15 1.620 1.68 0.99 3.70% -38.89% 29-Jun-16 1.000 (0.592) -36.5% 1.650 TS 71 5263 SUNWAY CONSTRUCTION GROUP 28-Jul-15 1.200 1.67 1.02 39.17% -15.00% 30-Jun-16 1.600 (0.015) -1.3% 1.810 Outperform 72 7235 SUPERLON HOLDINGS BHD 11-Feb-16 1.760 2.34 1.73 32.95% -1.70% 19-Jul-16 2.200 0.520 29.5% 2.300 Take Profit 73 7161 KERJAYA PROSPEK GROUP BHD 20-Jul-16 2.360 2.44 2.20 3.39% -6.78% 14-Oct-16 2.300 (0.030) -1.3% 2.640 Outperform 74 5123 MRCB-QUILL REIT 30-Sep-16 1.250 1.36 1.01 8.80% -19.20% 8-v-16 1.290 0.199 15.9% 1.410 Take Profit 75 8311 PESONA METRO HOLDINGS 3-v-16 0.435 0.49 0.44 12.64% 0.00% 11-v-16 0.500 0.055 12.6% 0.485 Take Profit 76 8966 PROLEXUS BHD 27-Jul-15 2.630 2.75 1.31 4.56% -50.19% 23-v-16 1.600 (0.605) -23.0% 1.680 t Rated 77 5140 TASCO BHD 18-May-15 2.060 2.25 1.48 8.98% -28.16% 27-Dec-16 1.500 (0.495) -24.0% 1.540 t Rated 78 6432 APOLLO FOOD HOLDINGS BHD 19-Jan-16 5.600 6.32 5.00 12.86% -10.71% 19-Jan-17 5.040 (0.324) -5.8% 5.010 t Rated 79 4456 DAGANG NEXCHANGE BHD 7-Dec-16 0.230 0.28 0.23 21.74% 0.00% 9-Jan-17 0.270 0.040 17.4% 0.280 Take Profit 80 2062 HARBOUR-LINK GROUP BHD 18-Jun-15 1.182 1.42 0.76 20.37% -35.70% 7-Feb-17 0.850 (0.319) -27.0% 0.850 t Rated Price Profit (incl. Div.) Profit Last Rating May 2017 Return YTD-May 2017 PP7004/02/2013(031762) Page 4 of 9

Portfolio (Continue) ID Price Since ID Price Since ID (%) SELL Rating Report Date RM (H) (L) (H) (L) RM RM % RM (%) (%) 81 5169 HO HUP CONSTRUCTION CO BHD 31-Dec-13 1.240 1.68 0.72 35.48% -41.94% 16-Feb-17 0.830 (0.405) -32.7% 0.840 t Rated 82 5231 PELIKAN INTERNATIONAL CORP 8-Oct-14 1.210 1.27 0.71 4.96% -41.32% 14-Feb-17 0.910 (0.295) -24.4% 0.940 t Rated 83 3743 SUNSURIA BHD 9-Jun-15 1.101 1.50 0.77 36.24% -30.52% 14-Feb-17 1.500 0.481 43.7% 0.940 Outperform 84 7134 PWF CONSOLIDATED BHD 15-Jan-15 0.605 0.90 0.50 48.76% -18.15% 10-Mar-17 0.855 0.109 18.0% 0.80-0.86 t Rated 85 0175 HENG HUAT RESOURCES GROUP 20-Jan-15 0.270 0.88 0.27 224.07% 0.00% 11-Apr-17 0.305 0.038 14.1% 0.320 t Rated 86 0183 SALUTICA BHD 18-May-16 0.825 1.82 0.78 120.61% -6.06% 19-Apr-17 1.650 0.858 104.0% N.A. t Rated 87 7117 CENTURY LOGISTICS HOLDINGS 18-May-15 0.865 1.19 0.76 37.57% -12.72% 19-Apr-17 1.140 0.395 45.7% N.A. t Rated 88 6459 MNRB HOLDINGS BHD 14-Oct-14 2.720 2.95 1.61 8.33% -40.93% 20-Apr-17 2.690 (0.030) -1.1% 2.720 t Rated 89 7174 CAB CAKARAN CORP BHD 3-Mar-15 0.930 2.56 0.90 175.27% -3.76% 26-Apr-17 2.470 1.551 166.7% 2.470 t Rated 90 5027 KIM LOONG RESOURCES BHD 29-Jun-16 3.400 3.84 3.19 12.94% -6.18% 11-May-17 3.730 0.535 15.7% 3.660 Take Profit 91 0113 MMS VENTURES BHD 12-May-15 0.795 1.22 0.46 53.46% -42.14% 18-May-17 1.070 0.346 43.5% 3.660 t Rated 92 9334 KESM INDUSTRIES BHD 9-Aug-16 6.690 15.02 3.47 124.51% -48.13% 25-May-17 13.380 6.730 100.6% 15.200 Outperform 93 7237 POWER ROOT BHD 21-Jul-15 2.180 2.92 1.87 33.94% -14.22% 25-May-17 2.650 0.690 31.6% 2.900 Outperform 94 7133 UNITED U-LI CORP BHD 7-Apr-15 2.670 6.86 3.41 156.93% 27.72% 25-May-17 4.560 2.131 79.8% 5.600 Outperform Price Profit (incl. Div.) Profit Last Rating May 2017 Return YTD-May 2017 Simple Average 29.0% OR Portfolio Average Return 28.57% FBMKLCI Index 1,646.32 1,892.65 1,532.14 14.96% -6.94% 1,765.87 FBMKLCI Capital Gain 7.26% 0.52% 7.56% FBMKLCI Return 25.11% 0.52% 9.13% OUERFORM/(UNDERPERFORM) 3.46% -2.77% 11.58% PP7004/02/2013(031762) Page 5 of 9

t Rated Portfolio ID Price Since ID Price Since ID (%) 31 May 2017 RM (H) (L) (H) (L) RM RM (%) RM 1 8125 DAIBOCHI PLASTIC & PACKAGING 1-v-12 1.100 2.770 0.983 151.82% -10.61% 2.700 1.60 145.45% 2.810 155.45% t Rated 2 7206 TH HEAVY ENGINEERING BHD 23-Aug-12 0.525 1.030 0.065 96.19% -87.62% 0.070-0.46-86.67% 0.550 4.76% FV 3 5042 TSR CAPITAL BHD 30-Aug-12 0.715 1.277 0.438 78.67% -38.78% 0.725 0.01 1.40% 0.870 21.68% FV 4 7210 FREIGHT MANAGEMENT HOLDINGS 3-Jan-13 0.940 1.900 0.940 102.13% 0.00% 1.380 0.44 46.81% 0.970 3.19% t Rated 5 5077 MALAYSIAN BULK CARRIERS BHD 10-Jan-13 1.420 2.210 0.525 55.63% -63.03% 0.715-0.71-49.65% 1.420 0.00% t Rated 6 5053 O.S.K. HOLDINGS BHD 5-Feb-13 1.460 2.550 1.390 74.66% -4.79% 1.660 0.20 13.70% 1.830 25.34% t Rated 7 7230 TOMEI CONSOLIDATED BHD 4-Apr-13 0.715 0.745 0.400 4.20% -44.06% 0.580-0.14-18.88% 0.715 0.00% t Rated 8 7091 UNIMECH GROUP BHD 25-Apr-13 1.200 1.724 1.029 43.65% -14.29% 1.120-0.08-6.67% 1.310 9.17% FV 9 5132 DELEUM BERHAD 14-May-13 1.204 2.588 0.820 114.91% -31.89% 0.930-0.27-22.76% 3.500 190.70% t Rated 10 0149 FIBON BHD 30-May-13 0.310 0.820 0.310 164.52% 0.00% 0.630 0.32 103.23% 0.340 9.68% t Rated 11 0101 TMC LIFE SCIENCES BHD 24-Sep-13 0.410 0.985 0.370 140.24% -9.76% 0.895 0.49 118.29% 0.410 0.00% t Rated 12 0021 GHL SYSTEMS BERHAD 8-Oct-13 0.407 1.600 0.383 293.12% -5.81% 1.390 0.98 241.52% 0.660 62.16% t Rated 13 8567 SALCON BHD 22-Oct-13 0.645 1.000 0.550 55.04% -14.73% 0.600-0.05-6.98% 0.670 3.88% t Rated 14 7062 KHIND HOLDINGS BERHAD 21-Jan-14 2.500 3.230 1.850 29.20% -26.00% 2.420-0.08-3.20% 2.680 7.20% t Rated 15 9199 LYSAGHT GALVANIZED STEEL BHD 13-Mar-14 3.140 6.210 3.050 97.77% -2.87% 3.640 0.50 15.92% 3.140 0.00% t Rated 16 5160 HOMERITZ CORP BHD 8-Apr-14 0.533 1.200 0.450 125.14% -15.57% 0.925 0.39 73.55% 0.830 55.72% t Rated 17 6688 HWANG CAPITAL MALAYSIA BHD 17-Apr-14 4.400 1.870 1.780-57.50% -59.55% 2.640-1.76-40.00% 2.680-39.09% t Rated 18 0158 SCC HOLDINGS BHD 17-Jul-14 1.540 2.650 1.160 72.08% -24.68% 2.090 0.55 35.71% 1.680 9.09% t Rated 19 5196 BERJAYA FOOD BHD 2-Sep-14 3.050 3.300 1.270 8.20% -58.36% 1.550-1.50-49.18% 3.030-0.66% t Rated 20 4251 I-BHD 8-Sep-14 1.215 1.205 0.465-0.85% -61.73% 0.600-0.62-50.62% 1.160-4.53% t Rated 21 3247 GUH HOLDINGS BHD 18-v-14 1.200 1.200 0.785 0.00% -34.58% 0.900-0.30-25.00% 1.200 0.00% t Rated 22 9474 BRAHIM'S HOLDINGS BERHAD 8-Jan-15 1.330 1.390 0.560 4.51% -57.89% 0.650-0.68-51.13% 1.300-2.26% t Rated 23 7200 TEK SENG HOLDINGS BHD 13-Jan-15 0.880 1.400 0.370 59.09% -57.95% 0.575-0.31-34.66% 0.830-5.68% t Rated 24 0170 KANGER INTERNATIONAL BHD 24-Feb-15 0.410 0.410 0.100 0.00% -75.61% 0.240-0.17-41.46% 0.410 0.00% t Rated 25 5182 MCT BHD 9-Apr-15 1.310 1.380 0.840 5.34% -35.88% 0.940-0.37-28.24% 1.310 0.00% t Rated 26 9318 FITTERS DIVERSIFIED BHD 14-Apr-15 0.680 0.705 0.385 3.68% -43.38% 0.405-0.28-40.44% 0.720 5.88% t Rated 27 7107 ORIENTAL FOOD INDUST HLDGS 16-Apr-15 1.128 2.550 1.128 126.06% -0.04% 1.690 0.56 49.82% 4.510 299.82% t Rated 28 1724 PARAMOUNT CORP BHD 23-Apr-15 1.660 2.070 1.300 24.70% -21.69% 1.800 0.14 8.43% 1.660 0.00% t Rated 29 5092 LCTH CORP BHD 28-Apr-15 0.495 0.815 0.440 64.65% -11.11% 0.500 0.01 1.01% 0.495 0.00% t Rated 30 5213 SENTORIA GROUP BHD 14-May-15 1.070 1.070 0.720 0.00% -32.71% 0.860-0.21-19.63% 1.230 14.95% t Rated 31 7213 HOVID BHD 26-May-15 0.485 0.535 0.285 10.31% -41.24% 0.320-0.17-34.02% 0.460-5.15% t Rated 32 0112 MIKRO MSC BHD 28-May-15 0.420 0.710 0.295 69.05% -29.76% 0.645 0.23 53.57% 0.420 0.00% t Rated 33 5161 JCY INTERNATIONAL BHD 2-Jun-15 0.735 0.890 0.485 21.09% -34.01% 0.605-0.13-17.69% 0.790 7.48% t Rated 34 7111 WEIDA M BHD 4-Jun-15 1.670 2.100 1.420 25.75% -14.97% 1.810 0.14 8.38% 1.630-2.40% t Rated 35 5204 PRESTARIANG BHD 16-Jun-15 2.550 3.260 1.620 27.84% -36.47% 2.130-0.42-16.47% 2.555 0.20% t Rated 36 5245 CARING PHARMACY GROUP BHD 14-Jul-15 1.150 2.080 1.050 80.87% -8.70% 1.810 0.66 57.39% 1.200 4.35% t Rated 37 6939 FIAMMA HOLDINGS BERHAD 16-Jul-15 0.613 0.830 0.500 35.40% -18.43% 0.560-0.05-8.65% 1.920 213.21% t Rated 38 7229 FAVELLE FAVCO BHD 23-Jul-15 2.760 3.050 2.270 10.51% -17.75% 2.820 0.06 2.17% 3.110 12.68% t Rated Upside/ Downside Rating PP7004/02/2013(031762) Page 6 of 9

n-rated Portfolio (Continue) ID Price Since ID Price Since ID (%) 31 May 2017 RM (H) (L) (H) (L) RM RM (%) RM 39 5024 HUP SENG INDUSTRIES BHD 11-Aug-15 1.250 1.440 1.150 15.20% -8.00% 1.230-0.02-1.60% 1.370 9.60% t Rated 40 4456 DAGANG NEXCHANGE BHD 18-Aug-15 0.197 0.665 0.182 237.56% -7.40% 0.555 0.36 181.73% 0.190-3.55% t Rated 41 7216 KAWAN FOOD BHD 20-Aug-15 2.480 4.750 2.330 91.53% -6.05% 4.570 2.09 84.27% 2.630 6.05% t Rated 42 0023 IFCA MSC BHD 8-Aug-15 0.820 1.040 0.250 26.83% -69.51% 0.390-0.43-52.44% 0.820 0.00% t Rated 43 5269 AL-SALAM REAL ESTATE INVESTM 15-Sep-15 1.000 1.070 0.900 7.00% -10.00% 1.030 0.03 3.00% 1.050 5.00% t Rated 44 5066 NM HOLDINGS BHD 21-Sep-15 0.775 1.080 0.695 39.35% -10.32% 0.860 0.09 10.97% 0.810 4.52% t Rated 45 7045 SCOMI ENERGY SERVICES BHD 22-Sep-15 0.270 0.300 0.135 11.11% -50.00% 0.180-0.09-33.33% 0.270 0.00% t Rated 46 5247 KAREX BHD 15-Oct-15 2.220 3.133 1.800 41.14% -18.92% 1.800-0.42-18.92% 3.800 71.17% t Rated 47 5251 TANAH MAKMUR BHD 13-Oct-15 1.370 1.890 1.300 37.96% -5.11% 1.890 0.52 37.96% 1.420 3.65% t Rated 48 6963 V.S. INDUSTRY BERHAD 27-Oct-15 1.540 2.050 1.160 33.12% -24.68% 1.950 0.41 26.62% 1.630 5.84% t Rated 49 7231 WELLCALL HOLDINGS BHD 22-Oct-15 2.370 2.890 1.790 21.94% -24.47% 2.240-0.13-5.49% 2.600 9.70% t Rated 50 0089 TEX CYCLE TECHNOLOGY 16-Dec-15 1.150 1.490 0.975 29.57% -15.22% 1.180 0.03 2.61% 1.225 6.52% t Rated 51 7006 LATITUDE TREE HOLDINGS BHD 13-Jan-16 8.050 8.050 4.640 0.00% -42.36% 5.240-2.81-34.91% 9.550 18.63% t Rated 52 7089 LII HEN INDUSTRIES BHD 13-Jan-16 2.640 3.520 2.050 33.33% -22.35% 3.240 0.60 22.73% 4.010 51.89% t Rated 53 7088 POH HUAT RESOURCES HLDGS BHD 13-Jan-16 1.930 2.010 1.430 4.15% -25.91% 1.810-0.12-6.22% 2.540 31.61% t Rated 54 7412 SHH RESOURCES HOLDINGS BHD 13-Jan-16 2.370 2.370 1.500 0.00% -36.71% 1.570-0.80-33.76% 3.090 30.38% t Rated 55 9261 GADANG HOLDINGS BHD 21-Jan-16 0.924 1.340 0.764 45.02% -17.32% 1.250 0.33 35.28% 2.440 164.07% t Rated 56 7161 KERJAYA PROSPEK GROUP BHD 26-Jan-16 1.710 3.310 1.640 93.57% -4.09% 3.240 1.53 89.47% 1.945 13.74% t Rated 57 5250 7-ELEVEN MALAYSIA HOLDINGS B 28-Jan-16 1.480 1.950 1.310 31.76% -11.49% 1.310-0.17-11.49% 1.520 2.70% t Rated 58 3042 PETRON MALAYSIA REFINING & M 24-Feb-16 7.170 8.810 3.520 22.87% -50.91% 8.000 0.83 11.58% 7.500 4.60% t Rated 59 5202 MSM MALAYSIA HOLDINGS BHD 23-Mar-16 4.690 5.100 4.280 8.74% -8.74% 4.280-0.41-8.74% 5.250 11.94% t Rated 60 5273 CHIN HIN GROUP BHD 30-Mar-16 0.865 1.470 0.795 69.94% -8.09% 1.350 0.49 56.07% 0.790-8.67% t Rated 61 7247 SCGM BHD 6-Apr-16 3.010 4.300 2.760 42.86% -8.31% 4.250 1.24 41.20% 3.090 2.66% t Rated 62 5101 EVERGREEN FIBREBOARD BHD 13-Apr-16 1.080 1.190 0.775 10.19% -28.24% 0.850-0.23-21.30% 1.220 12.96% t Rated 63 5271 PECCA GROUP BHD 19-Apr-16 1.420 2.000 1.500 40.85% 5.63% 1.530 0.11 7.75% 1.520 7.04% t Rated 64 5253 ECONPILE HOLDINGS BHD 26-Apr-16 1.340 2.460 1.290 83.58% -3.73% 2.450 1.11 82.84% 1.410 5.22% t Rated 65 7103 SPRITZER BHD 11-May-16 2.570 2.590 2.200 0.78% -14.40% 2.420-0.15-5.84% 2.530-1.56% t Rated 66 5133 PETRA ENERGY BHD 17-May-16 1.260 1.280 0.910 1.59% -27.78% 1.180-0.08-6.35% 1.300 3.17% t Rated 67 5271 PECCA GROUP BHD 16-Jun-16 1.680 2.000 1.500 19.05% -10.71% 1.530-0.15-8.93% 1.430-14.88% t Rated 68 5077 MALAYSIAN BULK CARRIERS BHD 4-Jul-16 0.855 0.930 0.685 8.77% -19.88% 0.715-0.14-16.37% 0.820-4.09% t Rated 69 5275 BISON CONSOLIDATED BHD 28-Jul-16 1.460 2.430 1.450 66.44% -0.68% 2.400 0.94 64.38% 1.500 2.74% t Rated 70 5056 ENGTEX GROUP BHD 6-Sep-16 1.300 1.500 1.130 15.38% -13.08% 1.340 0.04 3.08% 1.360 4.62% t Rated 71 7315 AHB HOLDINGS BHD 13-Sep-16 0.200 0.275 0.170 37.50% -15.00% 0.235 0.04 17.50% 0.200 0.00% t Rated 72 8605 FEDERAL FURNITURE HLDGS (M) 23-Sep-16 0.710 0.850 0.625 19.72% -11.97% 0.735 0.03 3.52% 0.740 4.23% t Rated 73 8397 TIONG NAM LOGISTICS HOLDINGS 20-Oct-16 1.630 1.860 1.540 14.11% -5.52% 1.760 0.13 7.98% 1.760 7.98% t Rated 74 7148 CCM DUOPHARMA BIOTECH BHD 15-v-16 2.120 2.410 1.920 13.68% -9.43% 2.250 0.13 6.13% 1.960-7.55% t Rated 75 5116 AL-'AQAR HEALTHCARE REAL EST 5-Dec-16 1.640 1.690 1.500 3.05% -8.54% 1.550-0.09-5.49% 1.960 19.51% t Rated 76 3301 HONG LEONG INDUSTRIES BHD 20-Dec-16 9.400 10.360 9.270 10.21% -1.38% 10.300 0.90 9.57% 9.140-2.77% t Rated Upside/ Downside Rating PP7004/02/2013(031762) Page 7 of 9

n-rated Portfolio (Continue) ID Price Since ID Price Since ID (%) 30 Apr 2017 RM (H) (L) (H) (L) RM RM (%) RM 77 6874 KUB MALAYSIA BHD 25-Jan-17 0.430 0.615 0.430 43.02% 0.00% 0.555 0.13 29.07% 0.450 4.65% t Rated 78 9792 SEG INTERNATIONAL BHD 3-Jan-17 1.150 1.290 1.070 12.17% -6.96% 1.220 0.07 6.09% 1.160 0.87% t Rated 79 5279 SERBA DINAMIK HOLDINGS BHD 8-Feb-17 1.500 2.230 1.500 48.67% 0.00% 2.090 0.59 39.33% 1.730 15.33% t Rated 80 5095 HEVEABOARD BHD 2-Mar-17 1.520 1.520 1.290 0.00% -15.13% 1.330-0.19-12.50% 1.500-1.32% t Rated 81 0021 GHL SYSTEMS BERHAD 28-Mar-17 1.150 1.600 1.100 39.13% -4.35% 1.390 0.24 20.87% 1.280 11.30% t Rated 82 0185 HSS ENGINEERS BHD 19-Apr-17 0.925 0.990 0.830 7.03% -10.27% 0.830-0.10-10.27% N.A. N.A. t Rated 83 7216 KAWAN FOOD BHD 27-Apr-17 4.300 4.750 4.300 10.47% 0.00% 4.570 0.27 6.28% 4.520 5.12% t Rated 84 1589 ISKANDAR WATERFRONT CITY BHD 28-Apr-17 3.100 3.220 1.610 3.87% -48.06% 1.670-1.43-46.13% 3.190 2.90% t Rated Upside/ Downside Rating This section is intentionally left blank. PP7004/02/2013(031762) Page 8 of 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, 50400 Kuala Lumpur, Malaysia Telephone: (603) 2172 0880 Website: www.kenanga.com.my E-mail: research@kenanga.com.my Chan Ken Yew Head of Research PP7004/02/2013(031762) Page 9 of 9