12
Ref. No.: CO2555_0236 1 of 8 Hana Microelectronics - HANA Bottoming Out Bloomberg Reuters HANA.TH HANA9 Thailand Equities Research 14 March 2012 Report type: Company Update Company Overview HANA is engaged in the manufacture and distribution of electronic components and micro electrical machine system (MEMS)-based devices for exports. This year sales growth would continue to come from Lamphun and China’s plants but the daily minimum wage hike may put pressure on overall performance. The Ayutthaya plant has resumed its production since Jan 2012 and production will be ramped up following acquisition of new machines and return of orders from clients. The daily minimum wage hike to Bt300, which will take effect on Apr 1, 2012, is expected to increase HANA’s costs by 25-30%. We rate HANA shares a ‘NEUTRAL’ with a target price of Bt21.50/share. What is the news? Earnings appear to have already bottomed out after the Lamphun plant has gained more market share from its rivals which were hit by floods. Earnings growth would be driven by sales of fast growing products but rising labor costs would put pressure on overall earnings performance. How do we view this? We have a more positive view on HANA in light of rising sales from auto electronics products, cell phones and PCs. Investment Actions? We rate HANA shares a ‘NEUTRAL’ with a target price of Bt21.50/share. Analyst Naree Apisawaittakarn Reg#17971 Hana Microelectronics Rating 3.00 Neutral - Previous Rating 3.00 Neutral Target Price (Bt) 21.5 - Previous Target Price (Bt) 21.5 Closing Price (Bt) 22.60 Expected Capital Gains (%) -4.87 Expected Dividend Yield (%) 4.42 Expected Total Return (%) -0.44 Raw Beta (Past 2yrs w eekly data) 0.41 Market Cap. (USD mn) 594 Enterprise Value (USD mn) 410 Market Cap. (Bt mn) 18,190 Enterprise Value (Bt mn) 12,391 3M Average Daily T/O (mn) 1.2 52 w eek range 15.2 - 25.5 Closing Price in 52 w eek range Major Shareholders (%) 20.8 9.2 9.1 CG Report - 2011 Key Financial Summary FYE 12/10 12/11 12/12F 12/13F Revenue (Btmn) 16,958 16,315 16,498 15,768 Net Profit, adj. (Btmn) 2,557 1,597 1,526 1,653 EPS, adj. (Bt) 3.18 1.98 1.90 2.05 P/E (X),adj. 7.1 11.4 11.9 11.0 BVPS (Bt) 16.95 17.54 19.05 20.14 P/B (X) 1.3 1.3 1.2 1.1 DPS (Bt) 1.55 1.00 1.00 1.05 Div. Yield (%) 6.9 4.4 4.4 4.7 Source: Bloomberg, PSR est. *All multiples & yields based on current market price Valuation Method P/E'12 (11x) 1. OMAC (HK) Limited 2. HSBC (Private) Bank (Suisse) SA 3. State Street Bank and Trust Company for London 10.00 17.00 24.00 31.00 38.00 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 0.05 1.55 3.05 4.55 6.05 7.55 9.05 Volume, mn HANA TB EQUITY SETI rebased 0% 50% 100%

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Page 1: Hana Microelectronics - HANA - CyberQuoteresearch.cyberquote.com.hk/page/htm/kc/share_companyrpt/...Hana Microelectronics - HANA Thailand Equities Research 14 March 2012 4 of 8 FYE

Ref. No.: CO2555_0236 1 of 8

Hana Microelectronics - HANA Bottoming Out Bloomberg │ Reuters HANA.TH │HANA9

Thailand Equities Research 14 March 2012

Report type: Company Update

Company Overview HANA is engaged in the manufacture and distribution of electronic components and micro electrical machine system (MEMS)-based devices for exports.

• This year sales growth would continue to come from Lamphun and China’s plants but the daily minimum wage hike may put pressure on overall performance.

• The Ayutthaya plant has resumed its production since Jan 2012 and production will be ramped up following acquisition of new machines and return of orders from clients.

• The daily minimum wage hike to Bt300, which will take effect on Apr 1, 2012, is expected to increase HANA’s costs by 25-30%.

• We rate HANA shares a ‘NEUTRAL’ with a target price of Bt21.50/share.

What is the news? Earnings appear to have already bottomed out after the Lamphun plant has gained more market share from its rivals which were hit by floods. Earnings growth would be driven by sales of fast growing products but rising labor costs would put pressure on overall earnings performance. How do we view this? We have a more positive view on HANA in light of rising sales from auto electronics products, cell phones and PCs. Investment Actions? We rate HANA shares a ‘NEUTRAL’ with a target price of Bt21.50/share.

Analyst Naree Apisawaittakarn Reg#17971 Tel. 662-2-635-1700 Ext. 484 Email: [email protected]

Hana Microelectronics

Rating 3.00 Neutral

- Previous Rating 3.00 Neutral

Target Price (Bt) 21.5

- Previous Target Price (Bt) 21.5

Closing Price (Bt) 22.60

Expected Capital Gains (%) -4.87

Expected Dividend Yield (%) 4.42

Expected Total Return (%) -0.44

Raw Beta (Past 2yrs weekly data) 0.41

Market Cap. (USD mn) 594

Enterprise Value (USD mn) 410

Market Cap. (Bt mn) 18,190

Enterprise Value (Bt mn) 12,391

3M Average Daily T/O (mn) 1.2

52 week range 15.2 - 25.5

Closing Price in 52 w eek range

Major Shareholders (%)

20.8

9.2

9.1

CG Report - 2011

Key Financial SummaryFYE 12/10 12/11 12/12F 12/13F

Revenue (Btmn) 16,958 16,315 16,498 15,768

Net Profit, adj. (Btmn) 2,557 1,597 1,526 1,653

EPS, adj. (Bt) 3.18 1.98 1.90 2.05

P/E (X),adj. 7.1 11.4 11.9 11.0

BVPS (Bt) 16.95 17.54 19.05 20.14

P/B (X) 1.3 1.3 1.2 1.1

DPS (Bt) 1.55 1.00 1.00 1.05

Div. Yield (%) 6.9 4.4 4.4 4.7

Source: Bloomberg, PSR est.

*All multiples & yields based on current market price

Valuation Method

P/E'12 (11x)

1. OMAC (HK) Limited

2. HSBC (Private) Bank (Suisse) SA

3. State Street Bank and Trust Company for London

10.00

17.00

24.00

31.00

38.00

Mar-11

Apr-11

May-11

Jun-11

Jul-11

Aug-11

Sep-11

Oct-11

Nov-11

Dec-11

Jan-12

Feb-12

0.05

1.55

3.05

4.55

6.05

7.55

9.05

Volume, mn HANA TB EQUITY SETI rebased

0% 50% 100%

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Growth likely to come from Lamphun and China’s plan ts in CY12 Management has guided that sales from Lamphun and China’s plants will keep growing y-y on the back of sales growth in auto electronics products, which is likely to come from China, and touch pad, as well as strong demand from PC and cell phone segments. The recent floods have also boosted orders at Lamphun’s plant by 15-20% as other producers’ plants were submerged by floods. Building renovation at China’s plant, which will cost about US$10mn, would boost capacity by 15% and new capacity is expected to come on stream in 3QCY12. At Ayutthaya’s plant, utilization rate is expected to rise steadily from current level of 30%. We fine-tune our CY12 sales outlook for HANA to US$541mn, up 1% y-y but the daily minimum wage hike in Apr would squeeze margins. Overall we estimate HANA will deliver a CY12 pre-exceptional net profit of Bt1,576mn, down 3% y-y. Ayutthaya plant has resumed production since Jan 20 12 Management notes that the Ayutthaya plant has resumed its production after the flooding since Jan 2012 and it now operates at 30% of capacity. HANA aims to boost the plant’s production to 50% of capacity in Jun 2012 but whether production will be restored back to pre-flood levels largely depends on how much orders from clients will come back. Property damages caused by floods at Ayutthaya’s plant are estimated to be US$40mn and business interruption losses are put at US$50mn for a period of more than 18 months. Insurance claims for flood damages would gradually be paid in installments and expenses related to machine repairs are expected to be booked in 1QCY12. Margins to be pressured by daily minimum wake hike to Bt300, effective Apr 1 In Thailand, the daily minimum wage hike to Bt300, which will take effect on Apr 1, 2012, is expected to increase HANA’s costs by 25-30%. Wages are also likely to rise at China’s plants. Rising labor costs would squeeze margins this year. ‘NEUTRAL’ rating with Bt21.50/share target price Earnings are poised to improve gradually going forward but we believe most of the positives are already baked into the share price. We rate HANA shares a ‘NEUTRAL’ with a target price of Bt21.50/share based on a P/E of 11x.

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FYE Dec FY09 FY10 FY11 FY12F FY13FValuation RatiosP/E (X), adj. 9.7 7.1 11.4 11.9 11.0P/B (X) 1.4 1.3 1.3 1.2 1.1EV/EBITDA (X), adj. 4.4 3.6 5.4 5.8 6.0Dividend Yield (%) 6.2 6.9 4.4 4.4 4.7 Per share data (Bt)EPS, reported 2.53 3.42 2.01 1.96 2.08EPS, adj. 2.32 3.18 1.98 1.90 2.05DPS 1.40 1.55 1.00 1.00 1.05BVPS 15.66 16.95 17.54 19.05 20.14Growth & Margins (%)GrowthRevenue -10.9 26.0 -3.8 1.1 -4.4EBITDA 4.4 20.4 -32.5 -7.2 -2.6EBIT 5.1 30.0 -37.8 -4.2 8.3Net Income, adj. 3.5 36.4 -37.5 -4.4 8.3MarginsEBITDA margin 21.0 20.1 14.1 12.9 13.2EBIT margin 15.2 15.6 10.1 9.6 10.9Net Profit Margin 13.9 15.1 9.8 9.3 10.5

Key RatiosROE (%) 15.1 19.2 10.8 10.0 10.3 ROA (%) 12.5 15.8 8.9 8.3 8.7

Net Debt-Cash (3,895) (2,641) (3,417) (3,536) (4,479)Net Gearing(X) Net Cash Net Cash Net Cash Net Cash Net Cash

Income Statement (Bt mn)Revenue 13,458 16,958 16,315 16,498 15,768EBITDA 2,830 3,407 2,299 2,134 2,078Depreciation & Amortisation 1,008 1,139 1,187 1,144 1,008EBIT 2,040 2,652 1,649 1,580 1,711Net Finance (Expense)/Income (7) (8) (9) (6) (7)Other items 339 495 563 616 667Associates & JVsProfit Before Tax 2,033 2,644 1,640 1,574 1,704Taxation 158 87 43 47 51Profit After Tax 1,875 2,557 1,597 1,526 1,653Non-controlling InterestNet Income, reported 2,043 2,749 1,618 1,576 1,676Net Income, adj. 1,875 2,557 1,597 1,526 1,653Source: PSR est.

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FYE Dec FY09 FY10 FY11 FY12F FY13FBalance Sheet (Bt mn)Cash 4,272 2,975 3,824 3,956 4,861ST Investments 1,729 2,035 2,014 2,096 2,115Accounts Receivables 2,293 2,480 2,569 2,712 2,592Inventories 1,757 2,555 2,647 3,040 2,879Others 106 195 154 185 200Total current assets 10,157 10,239 11,508 11,989 12,647PPE 5,605 6,526 6,373 6,537 6,577Intangibles 16 18 15 11 8Others 32 21 17 19 20Total non-current assets 5,654 6,565 6,404 6,567 6,605Total Assets 15,811 16,804 17,912 18,556 19,253Short term loans 377 333 407 420 382Accounts Payables 1,506 2,349 2,506 2,280 2,122Others 921 43 81 64 52Total current liabilities 2,805 2,725 2,994 2,764 2,555Others 353 388 423Total liabilities 2,805 2,725 3,347 3,153 2,978Shareholder Equity 13,006 14,079 14,565 15,403 16,274

Cashflow Statements (Bt mn)CFOPBT 2,201 2,836 1,661 1,624 1,727Adjustments 1,003 1,139 1,187 1,144 1,008Cash from ops before WC changes 3,058 3,747 3,176 2,797 2,801WC changes (20) (767) (261) (703) (8)Cash generated from ops 3,039 2,979 2,915 2,095 2,793Taxes paid, net (106) (170) (53) (50) (54)Interest paid 0 (0) 0 (1) (1)Cashflow from ops 2,932 2,809 2,862 2,044 2,738CFICAPEX, net (403) (2,293) (1,399) (1,339) (1,464)Investments in subs & associates (1,210) (221) 37 (82) (19)Cashflow from investments (1,448) (2,350) (1,243) (1,27 8) (1,334)CFFShare issuance 0 0 0 0 0Purchase of treasury shares (222) 0 0 0 0Loans, net of repayments 44 (44) 39 (6) (1)Dividends to shareholders & capital reduction (981) (1,127) (1,248) (805) (805)OthersCashflow from financing (1,160) (1,172) (1,209) (811) (8 06)Net change in cash (44) (1,298) 850 131 905Effects of exchange rates (369) (585) 439 176 308CCE, end 4,272 2,975 3,824 3,956 4,861Source: PSR est.

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Total Returns Recommendation Rating> +20% Buy 1+5% to +20% Accumulate/Trading Buy 2-5% to +5% Neutral 3-5% to -20% Reduce/Trading Sell 4>-20% Sell 5

We do not base our recommendations entirely on the above quantitative return bands. We

consider qualitative factors like (but not limited to) a stock's risk reward profile, market sentiment, recent rate of share price appreciation, presence or absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final recommendation

Ratings History

Phillip Group Rating System

Remarks

12345

Source: Bloomberg, PSR

10

17

24

31

38

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Target PriceMarket Price

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Research Department Fundamental: Name Analyst Reg No. Tel Email Sector Sasikorn Charoensuwan 9744 66 2 635 1700#480 [email protected] Banking Finance and Securities Rutsada Tweesaengsakulthai 17972 66 2 635 1700#482 [email protected] ICT Energy Health Care Services Danai Tunyaphisitchai 2375 66 2 635 1700#481 [email protected] Construction Materials Property Development Naree Apisawaittakan 17971 66 2 635 1700#484 [email protected] Agro & food Industry Electronics Siam Tiyanont 17970 66 2 635 1700#483 [email protected] Transportation Media and Publishing Preeyanun Tripetchchuporn 17973 66 2 635 1700#488 [email protected] Petrochemicals and Chemicals Commerce Tourism Ornmongkol Tantitanatorn 34100 66 2 635 1700#491 [email protected] Finance and Securities Automotive Energy. Packaging Rakpatai 66 2 635 1700#497 [email protected] Construction Materials Property Development Narongsak Strategy: Name Analyst Reg No. Tel Email Teerada Charnyingyong 9501 66 2 635 1700#487 [email protected] Pinkaew Santimetvirul 37928 66 2 635 1700#491 [email protected] Waraporn Trakonthanasoontorn 66 2 635 1700#495 [email protected] Sainum Tangsombatvisit 66 2 635 1700#498 [email protected] Technical: Name Analyst Reg No. Tel Email Sasima Hattakitnikorn 8328 66 2 635 1700#490 [email protected] Kanoksak Vutipan 2423 66 2 635 1700#485 [email protected] Database & Production: Name Tel Email Manunpat Yuenyongwatanakorn 66 2 635 1700#492 [email protected] Sutiporn Oupkaew 66 2 635 1700#489 [email protected] Translation: Name Tel Email Chaiyot Ingkhasorarat 66 2 635 1700#493 [email protected] Naowarat Angurasuchon 66 2 635 1700#496 [email protected]

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Bangkok Offices Head Office Srinakarindr Branch Viphavadi Branch

11st Fl., Unit 1102, 14th Fl., Unit 1404 17th Fl., Modernform Tower, 15th Fl., Lao Peng Nguan Tower 1,

and 15th Fl., Vorawat Bldg., 699 Srinakarindr Rd., Suan Luang, 333 Soi Chuaypuang, Viphavadi- 849 Silom Rd. Silom, Suan Luang, Bangkok 10250 Rangsit Rd., Ladyao, Chatuchak, Bangrak, Bangkok 10500 Tel : 0 2722 8344-53 Bangkok 10900 Tel : 0 2635 1700 , 0 2268 0999 Fax : 0 2722 8343 Tel : 0 2618 8400 Fax : 0 2635 1615 Fax : 0 2618 8344 , 0 2618 8381 Yaowarat Branch Bangkapi Branch Bangkapi 2 Branch

19th Fl., Kanchanadhat Bldg., 8th Fl., The Mall Office Tower-Bangkapi 8th Fl., The Mall Office Tower-Bangkapi 308 Yaowarat Rd., Jakawat, 3522 Lad Prao Rd., Klongchan 3522 Lad Prao Rd., Klongchan Sampantawong, Bangkok 10100 Bangkapi, Bangkok 10240 Bangkapi, Bangkok 10240 Tel : 0 2622 7833 , 0 2226 2777 Tel : 0 2363 3263 Tel : 0 2363 3469 Fax : 0 2622 7844 Fax : 0 2363 3275 Fax : 0 2363 3464 Hua Lumphong Branch Rangsit Branch Sindhorn Branch

4th Fl., Tang Hua Pak Bldg., G Fl., Room#PLZ.G.SHP065A 130-132 Sindhorn Tower 3 Building, 320 Rama 4 Rd., Mahaprutharam, Future Park Rangsit 19 Floor, Wireless Rd., Lumpini, Bangrak, Bangkok 10500 94 Paholyothin Rd., Prachathipat, Pathumwan, Bangkok 10330 Tel : 0 2639 1200 Thunyaburi, Pathumthani 12130 Tel : 0 2650 9717 Fax : 0 2639 1340-1 Tel : 0 2958 5040 Fax : 0 2657 9722 Fax : 0 2567 3311 Siam Discovery Branch 989 Siam Tower, 11st Floor, Unit A2, Rama 1 Rd., Pathumwan, Pathumwan, Bangkok 10330 Tel : 02 658 0776 Fax : 02 658 0773 Provincial Offices Khon Kaen Branch Phisanulok Branch Had Yai Branch

4th Fl., Kow Yoo Hah Bldg., 2nd Fl., Thai Sivarat Bldg., 4th Fl., Southland Rubber Bldg., 359/2 Mittapap Rd., Naimuang, 59/15 Baromtrilokanad Rd., Naimuang 55 Ratyindee Rd., Had Yai, Muang , Khon Kaen 40000 Muang, Phisanulok 65000 Had Yai, Songkla 90110 Tel : 0 4332 5044-8 Tel : 0 5524 3646 Tel : 0 7423 4095-99, 0 7423 0537-8 Fax : 0 4322 5687 Fax : 0 5524 5082 Fax : 0 7422 0908 Khon Kaen-Rim Bueng Branch Had Yai-Petkasem Branch Chumporn Investor Center

3rd Fl., Arokaya Bldg., 3rd Fl., Unit 3D, Redar Group Bldg., 25/45 Krom Luang Chumporn Rd., 52 Rop Bueng Rd., Nai Muang, 607 Petkaseam Rd., Had Yai, Tatapao, Muang, Chumporn 86000 Muang , Khon Kaen 40000 Had Yai, Songkla 90110 Tel : 0 7757 0652-3 Tel : 0 4322 6026 Tel : 0 7422 3044 Fax : 0 7757 0441 Fax : 0 4322 6796 Fax : 0 7422 3620 Suratthani Branch Laemchabang Branch 62/9 Donnok Rd., Talad, 83/112, 114 Moo 9, Tungsukla Muang Suratthani, Suratthani 84000 Sriracha, Chonburi 20110 Tel : 077 206 131 Tel : 0 3849 0669 Fax : 077 206 151 Fax : 0 3849 3125

Results Presentation

Score Range Number of Logo

Less than 50 No logo given

50 - 59

60 - 69

70 - 79

80 - 89

90 - 100

The disclosure of the survey result of the Thai Institute of Directors Association (IOD) regarding corporate governance is made pursuant to the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative disclosured to the public and able to be accessed by a general public investor. The results, 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 Gavernance Report of Thai Listed Companies. As a result, the survey result may be changed after that data. Phillip Securities (Thailand) of securities company does not confirm nor certify the accuracy of such survey result.

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Overseas Offices

SINGAPORE

Phillip Securities Pte Ltd Raffles City Tower

250, North Bridge Road #06-00 Singapore 179101

Tel : (65) 6533 6001 Fax : (65) 6535 6631 Website: www.poems.com.sg

MALAYSIA Phillip Capital Management Sdn Bhd B-3-6 Block B Level 3 Megan Avenue II, No. 12, Jalan Yap Kwan Seng, 50450

Kuala Lumpur Tel (603) 21628841 Fax (603) 21665099

Website: www.poems.com.my

HONG KONG

Phillip Securities (HK) Ltd Exchange Participant of the Stock Exchange of Hong Kong

11/F United Centre 95 Queensway Hong Kong

Tel (852) 22776600 Fax (852) 28685307 Websites: www.phillip.com.hk

JAPAN

PhillipCapital Japan K.K. Nagata-cho Bldg.,

8F, 2-4-3 Nagata-cho, Chiyoda-ku, Tokyo 100-0014

Tel (81-3) 35953631 Fax (81-3) 35953630 Website:www.phillip.co.jp

INDONESIA

PT Phillip Securities Indonesia ANZ Tower Level 23B,

Jl Jend Sudirman Kav 33A Jakarta 10220 – Indonesia

Tel (62-21) 57900800 Fax (62-21) 57900809 Website: www.phillip.co.id

CHINA

Phillip Financial Advisory (Shanghai) Co. Ltd No 550 Yan An East Road,

Ocean Tower Unit 2318, Postal code 200001

Tel (86-21) 51699200 Fax (86-21) 63512940 Website: www.phillip.com.cn

THAILAND

Phillip Securities (Thailand) Public Co. Ltd 15th Floor, Vorawat Building,

849 Silom Road, Silom, Bangrak, Bangkok 10500 Thailand

Tel (66-2) 6351700 / 22680999 Fax (66-2) 22680921 Website www.phillip.co.th

FRANCE

King & Shaxson Capital Limited 3rd Floor, 35 Rue de la Bienfaisance 75008

Paris France Tel (33-1) 45633100 Fax (33-1) 45636017

Website: www.kingandshaxson.com

UNITED KINGDOM

King & Shaxson Capital Limited 6th Floor, Candlewick House,

120 Cannon Street, London, EC4N 6AS

Tel (44-20) 7426 5950 Fax (44-20) 7626 1757 Website: www.kingandshaxson.com

UNITED STATES

Phillip Futures Inc 141 W Jackson Blvd Ste 3050

The Chicago Board of Trade Building Chicago, IL 60604 USA

Tel +1.312.356.9000 Fax +1.312.356.9005

AUSTRALIA

PhillipCapital Australia Level 37, 530 Collins Street,

Melbourne, Victoria 3000, Australia Tel (613) 96298380 Fax (613) 96148309

Website: www.phillipcapital.com.au

The information contained herein is based on sources which Phillip Securities(Thailand) believes reliable. We do not guarantee its accuracy or completeness. Opinions and estimates expressed herein are subject to change without notice. This report is for information only and should not be construed as an offer or solicitation for the purchase or sale of any securities referred to herein. We accept no liability for any loss, direct or indirect, from the use of this document. The directors and/or employees of Phillip Securities and or its associates may have an interest in the securities mentioned herein.

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PHILLIP RESEARCH STOCK SELECTION SYSTEMS

BUY >15% upside from the current price

HOLD Trade within ± 15% from the current price

SELL >15% downside from the current price

We do not base our recommendations entirely on the above quantitative return bands. We consider qualitative factors

like (but not limited to) a stock's risk reward profile, market sentiment, recent rate of share price appreciation, presence or

absence of stock price catalysts, and speculative undertones surrounding the stock, before making our final

recommendation

GENERAL DISCLAIMER

This publication is prepared by Phillip Securities (Hong Kong) Ltd (“Phillip Securities”). By receiving or reading this

publication, you agree to be bound by the terms and limitations set out below.

This publication shall not be reproduced in whole or in part, distributed or published by you for any purpose. Phillip

Securities shall not be liable for any direct or consequential loss arising from any use of material contained in this

publication.

The information contained in this publication has been obtained from public sources which Phillip Securities has no reason

to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”)

contained in this publication are based on such information and are expressions of belief only. Phillip Securities has not

verified this information and no representation or warranty, express or implied, is made that such information or Research

is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in this

publication is subject to change, and Phillip Securities shall not have any responsibility to maintain the information or

Research made available or to supply any corrections, updates or releases in connection therewith. In no event will Phillip

Securities be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of

the information or Research made available, even if it has been advised of the possibility of such damages.

Any opinions, forecasts, assumptions, estimates, valuations and prices contained in this material are as of the date

indicated and are subject to change at any time without prior notice.

This material is intended for general circulation only and does not take into account the specific investment objectives,

financial situation or particular needs of any particular person. The products mentioned in this material may not be suitable

for all investors and a person receiving or reading this material should seek advice from a financial adviser regarding the

suitability of such products, taking into account the specific investment objectives, financial situation or particular needs of

that person, before making a commitment to invest in any of such products.

This publication should not be relied upon as authoritative without further being subject to the recipient’s own independent

verification and exercise of judgment. The fact that this publication has been made available constitutes neither a

recommendation to enter into a particular transaction nor a representation that any product described in this material is

suitable or appropriate for the recipient. Recipients should be aware that many of the products which may be described in

this publication involve significant risks and may not be suitable for all investors, and that any decision to enter into

transactions involving such products should not be made unless all such risks are understood and an independent

determination has been made that such transactions would be appropriate. Any discussion of the risks contained herein

with respect to any product should not be considered to be a disclosure of all risks or a complete discussion of such risks.

Nothing in this report shall be construed to be an offer or solicitation for the purchase or sale of a security. Any decision to

purchase securities mentioned in this research should take into account existing public information, including any

registered prospectus in respect of such security.

Disclosure of Interest

Analyst Disclosure: Neither the analyst(s) preparing this report nor his associate has any financial interest in or serves as

an officer of the listed corporation covered in this report.

Firm’s Disclosure: Phillip Securities does not have any investment banking relationship with the listed corporation covered

in this report nor any financial interest of 1% or more of the market capitalization in the listed corporation. In addition, no

executive staff of Phillip Securities serves as an officer of the listed corporation.

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Phillip Securities (HK)Phillip Securities (HK)Phillip Securities (HK)Phillip Securities (HK) Ltd Ltd Ltd Ltd

2

Availability

The information, tools and material presented herein are not directed, intended for distribution to or use by, any person or

entity in any jurisdiction or country where such distribution, publication, availability or use would be contrary to the

applicable law or regulation or which would subject Phillip Securities to any registration or licensing or other requirement,

or penalty for contravention of such requirements within such jurisdiction.

© 2011 Phillip Securities (Hong Kong) Limited

Phillip Capital – Regional Member Companies

SINGAPORE

Phillip Securities Pte Ltd

Raffles City Tower 250, North Bridge Road #06-00

Singapore 179101 Tel : (65) 6533 6001 Fax : (65) 6535 6631

Website : www.poems.com.sg

MALAYSIA

Phillip Capital Management Sdn Bhd

B-2-6 Megan Avenue II 12 Jln Yap Kwan Seng 50450 Kuala Lumpur Tel : (603) 2166 8099 Fax : (603) 2166 5099

Website : www.poems.com.my

HONG KONG

Phillip Securities (HK) Ltd

11-12/F United Centre 95 Queensway, Hong Kong

Tel : (852) 2277 6600 Fax : (852) 2868 5307

Website : www.poems.com.hk

THAILAND

Phillip Securities (Thailand) Public Co Ltd

15/F, Vorawat Building 849 Silom Road

Bangkok Thailand 10500 Tel : (622) 635 7100 Fax : (622) 635 1616

Website : www.poems.in.th

JAPAN

The Naruse Securities Co Ltd

4-2, Nihonbashi Kabutocho Chuo Ku, Tokyo Japan 103-0026

Tel : (81) 03-3666-2101 Fax : (81) 03-3664-0141

Website : www.naruse-sec.co.jp

UNITED KINGDOM King & Shaxson Ltd

6th Floor, Candlewick House

120 Cannon Street London EC4N 6AS

Tel : (44) 207 426 5950 Fax : (44) 207 626 1757

Website : www.kingandshaxson.com

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