COMPANY RESEARCH | Transfer Coverage

July 7, 2014

Raffles Medical

(RFMD SP)

Share Price: SGD3.86

MCap (USD): 1.7B

Singapore

Target Price: SGD3.94(+2%)

ADTV (USD): 1M

Health Care

Positives priced in; cut to HOLD 

Downgrade to HOLD as surge in share price has closed the valuation discount to peers. DCF-based TP is SGD3.94.



China catalyst not in sight yet despite a year-long gestation, while local competition could rise in the near-term.



However, premium valuation justified by resilient corporate customer base and diversified foreign patient base.

HOLD

(Downgrade)

Key Data 52w high/low (SGD)

4.07/2.90

3m avg turnover (USDm)

1.1

Free float (%)

44.7

Issued shares (m)

562

Market capitalization

SGD2.2B

Major shareholders: -LOO CHOON YONG

49.6%

Valuation no longer appealing; cut to HOLD

-Aberdeen Asset Management (Asia) Ltd.

6.8%

With a change in analyst coverage, we cut Raffles Medical to HOLD following its recent share price rally that has pushed valuations to record levels. At 33x FY14E P/E, the stock looks fairly valued relative to FY13-16E EPS CAGR of 12.3%. The relative valuation discount vs sector peers has also evaporated. In our view, much of the positives are already in the price. Our DCF-based target price is lowered slightly to SGD3.94 (8% WACC, 2% Tg).

-S&D Holdings Pte Ltd.

3.3%

China catalyst not in sight Raffles Medical announced its initial plans to expand into China in Feb 2013. Up until now however, details have remained sketchy and the preliminary agreements signed in 2013 have yet to solidify into more concrete joint venture agreements. Management said that the company remains committed to the China expansion, but cautioned of possible delays. Even if the projects are confirmed, it would still take 2-3 years for operations to begin.

New private hospital could rock the boat

Share Price Performance 4.20

190

4.00

180

3.80

170

3.60

160

3.40

150

3.20

140

3.00

130

2.80

120

2.60

110

2.40

100

2.20 Jul-12

Nov-12

Mar-13

Raffles Medical - (LHS, SGD)

Jul-13

Nov-13

Mar-14

90

Raffles Medical / Straits Times Index - (RHS, %)

1 Mth 3 Mth 12 Mth Absolute(%)

5.5

16.6

20.6

Relative to index (%)

5.7

14.5

16.0

A new privately-owned hospital – Connexion at Farrer Park – is expected to open its doors next month. The new hospital has a strong Indonesian financial backer. Connexion chairman Dr Maurice Choo, a cardiologist, has been quoted in the press as saying that they plan to “disrupt the market” with lower prices.

Maybank vs Market

3.94

3.90

1.0

Premium valuation justified

'14 PATMI (SGDm)

67

72

(7.6)

For now, we think Raffles Medical’s premium valuation is justified given its resilient corporate customer base and diversified foreign patient base.

'15 PATMI (SGDm)

74

80

(8.3)

Source: FactSet; Maybank

FYE Dec (SGD m) Revenue EBITDA Core net profit Core FDEPS (cts) Core FDEPS growth(%) Net DPS (cts) Core FD P/E (x) P/BV (x) Net dividend yield (%) ROAE (%) ROAA (%) EV/EBITDA (x) Net debt/equity (%)

John Cheong (65) 6432 1461 [email protected]

FY12A 311.6 74.4 52.8 9.7 7.7 4.5 39.8 5.4 1.2 14.6 11.4 17.9 net cash

FY13A 341.0 102.6 60.6 10.9 12.8 5.0 35.3 4.5 1.3 14.1 11.3 14.1 net cash

FY14E 376.4 77.6 66.7 11.9 8.6 5.5 32.5 4.3 1.4 13.6 10.9 26.5 net cash

FY15E 415.7 86.3 73.8 13.1 10.5 6.0 29.4 4.0 1.6 14.0 10.8 25.0 net cash

FY16E 470.2 101.7 87.1 15.5 18.1 6.5 24.9 3.6 1.7 15.2 11.7 21.3 net cash

SEE PAGE 15 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Positive Market Recs

Neutral Negative

7

1

1

Maybank Consensus

% +/-

Target Price (SGD)

Gregory Yap (65) 6432 1450 [email protected]

Co. Reg No: 198700034E

MICA (P) : 099/03/2012

Raffles Medical

Positives priced in; cut to HOLD We are downgrading Raffles Medical to a HOLD due to its expensive valuations relative to other listed hospital plays. The share price has risen 24% YTD, even after rising 18.7% last year. We think the positives are fully priced in while medium term catalysts (eg, expansion of local hospital facilities, China growth plans) are still at an early stage. We are also concerned a new private hospital opening later this year will disrupt market pricing. The stock is now trading at the highest P/E multiple since 2003 (Figure 1) while P/BV is approaching a level only seen before the Great Financial Crisis (Figure 2). At 32.5x FY14E P/E and 29.4x FY15E P/E, Raffles Medical looks fairly priced relative to expected EPS CAGR of 12.3% in FY13-16E. The valuation gap compared to other listed hospitals has also closed. It is now trading at close to the sector average of 35.8x FY14E P/E and 31.6x FY15E P/E (Figure 3). However, the stock is not a sell as a premium valuation can still be justified by its defensive earnings, which will be provided by:  Its resilient corporate customer base that accounts for 60-70% of healthcare services revenue and 10-20% of hospital services revenue,  Its diverse pool of foreign patients that comprise one-third of its hospital patients from 100 countries. Indonesian patients only make up 20% of the foreign patient pool compared to 50% for the industry.  Room to raise prices further as Raffles Medical’s average bill size is still below other specialist hospitals such as Gleneagles. Figure 1: Raffles Medical - rolling P/E band

Figure 2: Raffles Medical - rolling P/BV band

Trading at the highest P/E multiple since 2003

P/BV is fast approaching pre-GFC peak of 4.9x

Source: Bloomberg, Maybank KE

Source: Bloomberg, Maybank KE

July 7, 2014

2

Raffles Medical Figure 3: Healthcare stocks in Asia – Peer valuation comparison Raffles Medical’s valuation discount to its peers has narrowed substantially at 29.4x-32.5x FY14E-15E relative to the sector average of 31.3x-35.8x 3Y EV/ Div *Share Target Market P/E EPS EBITDA P/BV ROE yield Rating Ccy price price cap (x) CAGR (x) (x) (%) (%) (lccy) (lccy) (USD m) FY14E FY15E FY16E (%) FY14E FY14E FY14E FY15E FY14E Raffles Medical HOLD SGD 4.05 3.94 1,740.9 32.5 29.4 24.9 12.3 32.5 4.3 13.1 13.4 1.4 IHH Healthcare HOLD MYR 4.49 3.80 11,530.0 44.0 38.1 28.6 25.2 20.7 2.0 4.4 5.0 0.6 Q&M Dental BUY SGD 0.47 0.55 228.2 42.7 36.2 33.6 18.4 28.8 6.3 14.0 15.8 1.7 Bumrungrad HOLD THB 114.50 115.00 2,575.9 38.9 31.5 25.8 14.6 18.7 7.8 26.7 28.9 1.8 Bangkok Dusit HOLD THB 16.20 16.00 7,748.6 36.0 29.5 24.5 13.6 22.2 5.6 16.3 18.0 1.1 Bangkok Chain HOLD THB 8.20 7.50 631.4 30.4 25.6 20.5 14.0 15.0 4.2 14.1 15.1 1.3 Chularat Hospital HOLD THB 13.30 11.50 451.7 31.7 28.3 24.6 8.7 19.1 4.6 16.8 17.6 1.1 Apollo Hospital NR INR 123.50 N.A. 956.5 103.7 42.9 29.1 52.7 24.3 1.3 0.8 2.8 Fortis Healthcare NR INR 1062.9 N.A. 2,474.7 37.5 30.7 26.2 12.7 19.5 4.6 12.5 13.9 0.6 KPJ Healthcare NR MYR 3.63 N.A. 1,166.0 32.4 29.3 27.1 6.2 17.5 3.0 9.7 9.9 1.6 Ramsay Healthc NR AUD 46.10 N.A. 8,713.2 28.3 23.8 20.8 10.7 15.0 5.7 20.2 21.2 1.8 Sector average excl Apollo Hosp’s FY14E P/E and 3Y EPS CAGR 35.8 31.6 26.1 13.7 20.8 4.5 13.5 14.8 1.2 *As of market close on 04 July 2014 Source: Bloomberg, Maybank KE

Target price has been fine-tuned. Along with the transfer of stock coverage to the authors of this report, we also adjusted our DCF-derived target price from SGD3.95 to SGD3.94. At the target price, the stock would be priced at 33.2x FY14E P/E and 30.0x FY15E P/E. The new assumptions behind the target price are:  A lower terminal growth rate of 2% (vs 3% previously) as plans for its expansion in China are taking longer than expected to materialise,  FY14E/FY15E/FY16E forecasts have been adjusted by +1.5%/-1.9%/7.3%. The larger cut in FY16E forecast is due to a delay in the expansion of Raffles Hospital in Singapore from 1Q16 to end-2016, and  We also rolled over our valuation base year from FY14E to FY15E. Figure 4: DCF-based target price FYE Dec (SGD m) Free cash flow to equity Terminal value Discounted FCFE Total discounted FCFE Add: FY14E net cash Intrinsic value Fair value (SGD) WACC (assume long-term debt ratio of zero) Risk-free rate Beta (x) Expected market return Terminal growth

FY14E (123.5)

FY15E (37.4)

FY16E 20.4

FY17E 100.0

FY18E 136.3

(123.5)

(34.6) 2,113.3 101.5 2,214.8 3.94

17.5

79.5

100.4

FY19E 157.6 2,701.6 1,950.5

8.0% 3.0% 0.90 8.5% 2.0%

Source: Maybank KE

July 7, 2014

3

Raffles Medical

China catalyst still not in sight Raffles Medical announced its initial plans to expand into China to build a 200-bed international hospital in Shenzhen and a 300-bed hospital in Shanghai in Feb and Sep 2013 respectively. Up until now however, details have remained sketchy and there has been no news that the preliminary agreements signed in 2013 have solidified into more concrete agreements. When questioned, management said that the company remains committed to the China expansion, but cautioned of possible delays due to a longer than expected regulatory process in China to get its projects off the ground. Nevertheless, even if the projects are confirmed and legally binding documentation is executed, we estimate it would still take 2-3 years for the hospitals to be constructed and begin operations. Figure 5: Raffles Medical’s announced hospital projects in China Integrated hospital project in Shekou, Shenzhen (proposed partnership with China Merchants Group) Last known format of agreement Letter of Intent Planned number of beds More than 200 Total development cost SGD150m Estimated construction period 2-3 years Background of proposed partner China Merchants Group (CMG) is a top-tier Chinese stateowned enterprise that has played a pioneer role in the modernisation of China. Headquartered in Hong Kong and founded in 1872, CMG has massive investments in infrastructure assets in China such as shipping, ports, railways and expressways, as well as financial institutions, property development, logistics, etc. Integrated hospital project in Pudong, Shanghai (proposed partnership with Shanghai Binjiang International Tourism Development Company) Last known format of agreement Memorandum of Understanding Planned number of beds More than 300 Total development cost SGD250m Estimated construction period 2-3 years Background of proposed partner Shanghai Binjiang is a subsidiary of the Shanghai Lujiazui Development Company, whose chief responsibility is to develop large tracts of land in the Lujiazui Finance & Trade Zone of Shanghai, east of the Huangpu River. Source: Company, Maybank KE

The private hospital industry in China has been drawing in private and foreign investors looking to stake their claims after the government first loosened rules in 2012 for private healthcare operators to enter the market. The recent struggle by private equity group TPG Capital and Chinese drug maker Shanghai Fosun Pharmaceutical to acquire Chindex for USD461m (up 25% from their initial bid) in the face of a rival bidder highlights the industry’s attractiveness to investors, in our view. Chindex is a high-end private hospital group with 577 beds, comprising 297 beds in four operational hospitals in Beijing, Tianjin and Shanghai and 280 beds from two new hospitals in Guangzhou and Qingdao expected to be completed in 2016. Despite the long term potential however, one key obstacle could be regulatory complications at the local level. Although the central government has lowered investment thresholds for private hospital investors, local health authorities are subjecting private operators to regulations that may reduce their investment returns, such as subjecting them to local or regional health programs for the poor that have lower or no profit potential. In its choice of partners and locations, Raffles Medical appears well-positioned to manage this issue. China Merchants Group is one of China’s largest SOEs, and Shanghai Binjiang is directly linked to the July 7, 2014

4

Raffles Medical conglomerate that is developing the financial heart of Shanghai, while Shekou and Pudong are locations that cater to the well-heeled, or in other words, patients who can afford to pay a premium for healthcare.

New private hospital could rock the boat A new privately-owned hospital is expected to be completed this year in Singapore. The integrated healthcare and hotel complex (called Connexion) will comprise a specialist medical centre with 189 consultation suites, a private tertiary hospital called Farrer Park Hospital with 220 beds, a five-star 230-room hotel equipped with wellness facilities and a ground floor lifestyle retail zone. This new hospital is developed by a group of 22 doctors practising at the Parkway Group’s hospitals who wanted to set up an independent hospital of their own, along with investments from Indonesia’s fourth richest billionaire Low Tuck Kwong of coal miner Bayan Resources. Connexion chairman Dr Maurice Choo, a cardiologist, has been quoted in the press as saying that they plan to “disrupt the market” with lower prices. Our visit to the Connexion site showed that the building is almost complete, with the building facade and internal fittings almost done. Even the landscaping around the building is complete. According to the receptionist, Phase 1 of the hospital will open for business by September. Figure 6: Connexion building exterior

Figure 7: Connexion main driveway

Source: Maybank KE

Source: Maybank KE

Figure 8: Farrer Park Hospital reception within Connexion

Figure 9: External landscaping complete

Source: Maybank KE

Source: Maybank KE

July 7, 2014

5

Raffles Medical

Singapore still the mainstay for now Until its overseas expansion plans become more material, Raffles Medical’s local market will continue to drive growth for the foreseeable future. The broad growth drivers will include: 

Organic expansion of existing hospital and healthcare services,



Government healthcare subsidy initiatives,



Room for hospital bills to rise, and



Property expansion to support growth and raise rental income.

Organic expansion in Singapore. The key drivers are: 1) Raffles Hospital still has spare capacity. With bed utilisation currently at 60-65%, there is room for the hospital segment to grow further, 2) Adding of new specialists in the Dermatology, Orthopaedics, Cardiology, Ear Nose Throat (ENT) and Psychiatry departments this year, 3) Opening of a new clinic in Yew Tee Point in Jan this year and the opening of a medical centre at Marina Bay Financial Centre in June this year to provide GP, dental and specialist services, 4) Adding of dental chairs in new clinics at the White Sands, Bedok Mall and Jurong Point shopping centres, and the introduction of new equipment to offer higher end imaging and dental restoration services, and 5) Securing of more corporate customers. The most recent two wins Resorts World Sentosa and Global Foundries - have a combined workforce of 10,000 people. Government healthcare subsidies. The government has broadened medical coverage under the Community Healthcare Assist Scheme (CHAS) to every eligible Singaporean, doubling the number of potential patients to 1.5m. Previously, it was limited to adults over 40 or those with disabilities. In addition, the number of chronic illnesses has also been increased. CHAS is a government scheme to incentivise private healthcare operators to accept public healthcare patients as a way to avoid overly burdening government polyclinics and dental facilities. Room for hospital bills to rise. Based on data from the Ministry of Health, the average bill sizes for both medical and surgical specialties at Raffles Medical are still lower than that of Mount Elizabeth and Gleneagles:  For medical specialties, its respective average bill size is 51% and 16% lower than that of Mount Elizabeth and Gleneagles (Figure 10).  For surgical specialties, its average bill size is 37% and 21% lower than that of Mount Elizabeth and Gleneagles, respectively (Figure 11). In comparison to public hospitals such as Singapore General Hospital and National University Hospital, Raffles Medical’s average bill size for surgical specialties is only 4% and 13% higher. We believe the price discount to its peers suggests room for upward price revisions.

July 7, 2014

6

Raffles Medical Figure 10: Bill differences for medical specialties in 2012

Figure 11: Bill differences for surgical specialties in 2012

Raffles Medical’s average bill size is 51% and 16% lower than that of Mount Elizabeth and Gleneagles

Raffles Medical’s average bill size is 37% and 21% lower than that of Mount Elizabeth and Gleneagles

Source: Ministry of Health

Source: Ministry of Health

Property expansion to support further growth and raise rental income. In addition to increasing the amount of space for its medical operations, Raffles Medical is also increasing its capacity to collect rental income. The following two major developments are underway:  Construction of the Holland Village shopping mall, part of which will be used for a medical centre, began three months ago and should be completed by Mar 2016. Raffles Medical will keep 9,000 sq ft of the 62,720 sq ft floor area for its own purpose and rent out 4,500 sq ft to DBS Bank with the rest for retail shops and F&B outlets.  The extension of Raffles Hospital along North Bridge Road is awaiting final regulatory approval. However, we now expect the extension to be completed by end-2016, instead of early 2016. Upon completion of these two projects, Raffles Medical will augment its income stream from rental of space, currently only available at Raffles Hospital. By FY16E, we foresee rentable space increasing 130% from 310,000 sq ft to 712,000 sq ft, and rental income rising from SGD1.6m in FY13 (0.4% of total revenue) to SGD15.7m in FY17E (2.9% of total revenue). Figure 12: Two properties will more than double floor space

Figure 13: Rental income & depreciation forecasts

In addition to using the extra space from these properties, there will also be ample additional space to be leased out

We expect higher rental income to offset the rise in depreciation costs from the new property developments

Source: Company

Source: Company, Maybank KE

July 7, 2014

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Raffles Medical Start-up costs will be manageable. The start-up costs for Holland Village Mall and the Raffles Hospital extension will not be large, as Raffles Medical plans to use only 20% of Holland Village Mall and 50% of the extended Raffles Hospital for its own purpose, with the remaining space to be rented out. Depreciation will only be charged for the floor space it uses, while the rented space will be recognised as investment properties. We estimate the additional annual depreciation to be SGD3.2m, easily offset by the expected increase in rental income of SGD14.2m (Figure 13). Figure 14: Extra property depreciation will be offset by higher rental income Raffles Hospital extension Depreciation assumptions Land cost of SGD105.2m depreciated over remaining 64-year lease. Building construction cost of SGD204.8m depreciated over 50 years. Raffles Medical will use 50% of the net lettable area (NLA) and will only recognise 50% of the depreciation. The rented space will be recognized as investment property and will be revalued annually. Rental income assumptions SGD10 psf/month x NLA of 90,000 sq ft x 12 months. NLA is derived from (81% x 221,869 sq ft of gross floor area, GFA) less 90,000 sq ft for own use. Holland Village Mall redevelopment Depreciation assumptions Land cost of SGD54.8m depreciated over remaining 72-year lease. Building construction cost of SGD65.2m depreciated over 50 years. Raffles Medical will use 15% of the net lettable area, hence it will only recognise 15% of the total depreciation. The rented space will be recognized as investment property and will be revalued annually. Rental income SGD8 psf/month x 34,900 sq ft NLA x 12 months. NLA is derived based on (70% x 62,720 sq ft of GFA) less 9,000 sq ft for own use.

SGD2.9m pa

SGD10.8m pa

SGD0.3m pa

SGD3.4m pa

Source: Maybank KE estimates

July 7, 2014

8

Raffles Medical

New public hospital bed supply not a threat In response to a hospital bed shortage, the government is aggressively expanding the number of public hospitals over the next few years. Three new public hospitals and an extension to an existing public hospital with a total addition of 1,778 beds (17% of the existing nationwide bed capacity) are expected to be completed this year and next year. Beyond this, two more public hospitals with another 1,772 beds are planned for 2018 and 2020. Figure 15: New hospitals and bed supply coming onstream Private hospitals Farrer Park Hospital, Connexion Public hospitals Ng Teng Fong General Hospital Changi General Hospital extension Jurong Community Hospital Yishun Community Hospital Sengkang General & community Hospital Outram Community Hospital Total beds

Completion year

No. of beds

2014

220

2014 2014 2015 2015 2018 2020

700 250 400 428 1,400 372 3,770

Source: Ministry of Health, Company

We do not see this as a threat to the private hospitals, as public hospitals mainly target price-sensitive patients and there is a significant price gap between private and public hospitals (Figures 10-11). The increase is mainly to alleviate the current acute shortage of beds that has seen government hospital occupancy rates soar to near 90% above the average of 86.3% seen in 2013 (Figure 16-17). During peak periods, occupancy has been known to exceed 100% as hospitals are forced to put beds in corridors and even set up tents on hospital grounds to accommodate the crush of people seeking treatment. This situation has steadily worsened since 2010, despite the opening of the 550-bed Khoo Teck Puat Hospital (now 590 beds) in Yishun in 2011. Figure 16: Public hospital average bed occupancy (daily)

Figure 17: Public hospital average bed occupancy (yearly)

Daily average bed occupancy at public hospitals such as NUH, SGH, Alexandra Hospital and Khoo Tech Puat Hospital regularly exceeds 90%

The bed shortage has worsened in 2014 compared to 2013, when the average occupancy rate was 86% (already the highest rate since 2007)

Source: Ministry of Health

Source: Ministry of Health

Singapore’s hospital bed density of 1.7 beds per 1,000 people in 2013 is still lower than that of most developed nations. Even with this ratio expected to rise to 2.2 beds by 2020, it is still lower than the vast majority of development countries (Figure 18). More significantly, private hospital bed density is expected to rise just slightly from 0.5 beds over 1,000 people in 2013 to 0.53x by 2020, as the population is expected to expand as well (Figure 19). July 7, 2014

9

Raffles Medical

Figure 18: Hospital bed density (beds per 1,000 population)

Figure 19: Hospital bed density (public vs private)

Singapore’s hospital bed density is still lower than that of most other developed nations

Bed density in private hospitals expected to remain stable over the long term

Source: Central Intelligence Agency, Ministry of Health

Source: Company, Maybank KE

Figure 20: New hospitals coming on stream between 2014 and 2020

Source: MOH Holdings

July 7, 2014

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Raffles Medical

Figure 21: Hospitals and number of beds in Singapore Public hospitals Alexandra Hospital Changi General Hospital Institute Of Mental Health Khoo Teck Puat Hospital KK Women's And Children's Hospital National Heart Centre Singapore National University Hospital Singapore General Hospital Tan Tock Seng Hospital Private hospitals Gleneagles Hospital Mount Alvernia Hospital Mount Elizabeth Hospital Mount Elizabeth Novena Hospital Parkway East Hospital Raffles Hospital Thomson Medical Centre Total beds

Number of beds 8,387 400 800 2,000 590 830 186 881 1,500 1,200 1,984 380 303 505 333 113 150 190 10,361

Excluding eight community hospitals (mainly rehabilitation, geriatric care and coalescing care) and four national specialist centres. Sources: Various

July 7, 2014

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Raffles Medical FYE 31 Dec Key Metrics P/E (reported) (x) Core P/E (x) Core FD P/E (x) P/BV (x) P/NTA (x) Net dividend yield (%) FCF yield (%) EV/EBITDA (x) EV/EBIT (x)

FY12A

FY13A

FY14E

FY15E

FY16E

36.7 39.5 39.8 5.4 5.4 1.2 2.9 17.9 20.1

25.0 35.1 35.3 4.5 4.5 1.3 3.0 14.1 15.4

32.3 32.3 32.5 4.3 4.3 1.4 nm 26.5 26.5

29.4 29.4 29.4 4.0 4.0 1.6 nm 25.0 25.0

24.9 24.9 24.9 3.6 3.6 1.7 1.4 21.3 21.3

INCOME STATEMENT (SGD m) Revenue EBITDA Depreciation Amortisation EBIT Net interest income /(exp) Associates & JV Pretax profit Income tax Minorities Reported net profit Core net profit

311.6 74.4 (7.9) (0.2) 66.4 0.2 0.0 66.6 (9.4) (0.4) 56.8 52.8

341.0 102.6 (8.3) 0.0 94.3 0.9 0.0 95.2 (9.9) (0.4) 84.9 60.6

376.4 77.6 (8.5) 0.0 77.6 0.4 0.0 78.0 (10.9) (0.4) 66.7 66.7

415.7 86.3 (8.9) 0.0 86.3 (0.2) 0.0 86.2 (12.1) (0.4) 73.8 73.8

470.2 101.7 (9.9) 0.0 101.7 (0.0) 0.0 101.7 (14.2) (0.4) 87.1 87.1

BALANCE SHEET (SGD m) Cash & Short Term Investments Accounts receivable Inventory Property, Plant & Equip (net) Intangible assets Other assets Total assets ST interest bearing debt Accounts payable LT interest bearing debt Other liabilities Total Liabilities Shareholders Equity Minority Interest Total shareholder equity

102.5 38.2 5.4 153.9 0.2 194.5 494.6 19.7 66.3 0.0 13.0 99.1 388.4 1.0 389.4

265.9 44.2 9.1 153.7 0.2 100.4 573.4 4.8 72.7 0.0 12.5 89.9 472.5 1.3 473.8

111.1 45.4 6.7 384.8 0.2 100.4 648.5 10.0 89.5 0.0 14.6 114.1 508.3 1.3 509.6

39.7 50.1 7.3 520.9 0.2 100.4 718.5 10.0 96.9 20.0 14.6 141.5 548.4 1.3 549.6

23.2 55.4 7.9 582.4 0.2 100.4 769.5 10.0 105.1 10.0 14.6 139.7 598.9 1.3 600.2

66.6 8.1 6.0 (9.0) (2.1) 69.5 (9.7) 59.8 (9.1) 0.0 (1.5) 3.6 (0.0) 52.8

95.2 8.3 0.3 (10.4) (22.2) 71.2 (8.2) 63.0 (9.9) 0.0 (15.2) 125.4 0.1 163.4

78.0 8.5 33.1 (10.9) 2.1 110.8 (239.6) (128.8) (30.9) 0.0 5.2 (0.4) 0.0 (154.8)

86.2 8.9 4.7 (12.1) 0.0 87.6 (145.0) (57.4) (33.7) 0.0 20.0 (0.4) 0.0 (71.4)

101.7 9.9 4.5 (14.2) 0.0 101.9 (71.4) 30.4 (36.5) 0.0 (10.0) (0.4) 0.0 (16.5)

CASH FLOW (SGD m) Pretax profit Depreciation & amortisation Change in working capital Cash taxes paid Other operating cash flow Cash flow from operations Capex Free cash flow Dividends paid Equity raised / (purchased) Change in Debt Other invest/financing cash flow Effect of exch rate changes Net cash flow

July 7, 2014

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Raffles Medical FYE 31 Dec Key Ratios Growth ratios (%) Revenue growth EBITDA growth EBIT growth Pretax growth Reported net profit growth Core net profit growth

FY12A

FY13A

FY14E

FY15E

FY16E

14.2 11.5 11.5 12.0 12.8 9.6

9.4 37.9 42.2 43.0 49.3 14.6

10.4 (24.3) (17.7) (18.1) (21.4) 10.2

10.4 11.2 11.2 10.5 10.5 10.5

13.1 17.8 17.8 18.0 18.1 18.1

Profitability ratios (%) EBITDA margin EBIT margin Pretax profit margin Payout ratio

23.9 21.3 21.4 42.7

30.1 27.7 27.9 32.4

20.6 20.6 20.7 46.0

20.8 20.8 20.7 45.7

21.6 21.6 21.6 42.0

DuPont analysis Net profit margin (%) Revenue/Assets (x) Assets/Equity (x) ROAE (%) ROAA (%)

18.2 0.6 1.3 14.6 11.4

24.9 0.6 1.2 14.1 11.3

17.7 0.6 1.3 13.6 10.9

17.7 0.6 1.3 14.0 10.8

18.5 0.6 1.3 15.2 11.7

Liquidity & Efficiency Cash conversion cycle Days receivable outstanding Days inventory outstanding Days payables outstanding Dividend cover (x) Current ratio (x)

na 40.4 na na 2.3 1.5

na 43.5 na na 3.1 3.6

na 42.8 na na 2.2 1.5

na 41.3 na na 2.2 0.8

na 40.4 na na 2.4 0.7

5.0 net cash na 0.3 3.1 (82.7)

6.4 net cash na 0.0 2.4 (261.2)

5.7 net cash na 0.1 63.6 (101.1)

5.1 net cash nm 0.3 34.9 (9.7)

5.5 net cash nm 0.2 15.2 (3.2)

Leverage & Expense Analysis Asset/Liability (x) Net debt/equity (%) Net interest cover (x) Debt/EBITDA (x) Capex/revenue (%) Net debt/ (net cash)

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Raffles Medical Research Offices REGIONAL

HONG KONG / CHINA

INDONESIA

WONG Chew Hann, CA Regional Head of Institutional Research (603) 2297 8686 [email protected]

Howard WONG Head of Research (852) 2268 0648 [email protected] • Oil & Gas - Regional

Wilianto IE Head of Research (62) 21 2557 1125 [email protected] • Strategy

ONG Seng Yeow Regional Head of Retail Research (65) 6432 1453 [email protected]

Alexander LATZER (852) 2268 0647 [email protected] • Metals & Mining - Regional

Rahmi MARINA (62) 21 2557 1128 [email protected] • Banking & Finance

Jacqueline KO, CFA (852) 2268 0633 [email protected] • Consumer

Aurellia SETIABUDI (62) 21 2953 0785 [email protected] • Property

Alexander GARTHOFF Institutional Product Manager (852) 2268 0638 [email protected]

ECONOMICS Suhaimi ILIAS Chief Economist Singapore | Malaysia (603) 2297 8682 [email protected] Luz LORENZO Philippines (63) 2 849 8836 [email protected] Tim LEELAHAPHAN Thailand (662) 658 1420 [email protected] JUNIMAN Chief Economist, BII Indonesia (62) 21 29228888 ext 29682 [email protected] Josua PARDEDE Economist / Industry Analyst, BII Indonesia (62) 21 29228888 ext 29695 [email protected]

MALAYSIA WONG Chew Hann, CA Head of Research (603) 2297 8686 [email protected] • Strategy • Construction & Infrastructure Desmond CH’NG, ACA (603) 2297 8680 [email protected] • Banking & Finance LIAW Thong Jung (603) 2297 8688 [email protected] • Oil & Gas - Regional • Shipping ONG Chee Ting, CA (603) 2297 8678 [email protected] • Plantations - Regional Mohshin AZIZ (603) 2297 8692 [email protected] • Aviation - Regional • Petrochem YIN Shao Yang, CPA (603) 2297 8916 [email protected] • Gaming – Regional • Media TAN Chi Wei, CFA (603) 2297 8690 [email protected] • Power • Telcos WONG Wei Sum, CFA (603) 2297 8679 [email protected] • Property & REITs

Karen KWAN (852) 2268 0640 [email protected] • Property & REITs Osbert TK TANG, CFA (86) 21 5096 8370 [email protected] • Transport & Industrials Ricky WK NG, CFA (852) 2268 0689 [email protected] • Utilities & Renewable Energy Simon QIAN, CFA (852) 2268 0634 [email protected] • Telecom & Internet Steven ST CHAN (852) 2268 0645 [email protected] • Banking & Financials - Regional Warren LAU (852) 2268 0644 [email protected] • Technology – Regional William YANG (852) 2268 0675 [email protected] • Technology – Regional

INDIA Jigar SHAH Head of Research (91) 22 6632 2632 [email protected] • Oil & Gas • Automobile • Cement Anubhav GUPTA (91) 22 6623 2605 [email protected] • Metal & Mining • Capital Goods • Property Urmil SHAH (91) 22 6623 2606 [email protected] • Technology • Media

SINGAPORE NG Wee Siang Head of Research (65) 6432 1467 [email protected] • Banking & Finance Gregory YAP (65) 6432 1450 [email protected] • SMID Caps – Regional • Technology & Manufacturing • Telcos • Consumer Wilson LIEW (65) 6432 1454 [email protected] • Property Developers ONG Kian Lin (65) 6432 1470 [email protected] • S-REITs

Anthony YUNUS (62) 21 2557 1136 [email protected] • Consumer • Poultry Isnaputra ISKANDAR (62) 21 2557 1129 [email protected] • Metals & Mining • Cement Pandu ANUGRAH (62) 21 2557 1137 [email protected] • Infrastructure • Construction • Transport Janni ASMAN (62) 21 2953 0784 [email protected] • Cigarette • Healthcare • Retail

PHILIPPINES Luz LORENZO Head of Research (63) 2 849 8836 [email protected] • Strategy Laura DY-LIACCO (63) 2 849 8840 [email protected] • Utilities • Conglomerates • Telcos Lovell SARREAL (63) 2 849 8841 [email protected] • Consumer • Media • Cement Rommel RODRIGO (63) 2 849 8839 [email protected] • Conglomerates • Property • Gaming • Ports/ Logistics Katherine TAN (63) 2 849 8843 [email protected] • Banks • Construction Ramon ADVIENTO (63) 2 849 8845 [email protected] • Mining

THAILAND Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 [email protected] • Consumer / Materials Jesada TECHAHUSDIN, CFA (66) 2658 6300 ext 1394 [email protected] • Financial Services Kittisorn PRUITIPAT, CFA, FRM (66) 2658 6300 ext 1395 [email protected] • Real Estate

LEE Yen Ling (603) 2297 8691 [email protected] • Building Materials • Glove Producers

YEAK Chee Keong, CFA (65) 6432 1460 [email protected] • Offshore & Marine

CHAI Li Shin (603) 2297 8684 [email protected] • Plantation • Construction & Infrastructure

Derrick HENG (65) 6432 1446 [email protected] • Transport (Land, Shipping & Aviation)

Ivan YAP (603) 2297 8612 [email protected] • Automotive

WEI Bin (65) 6432 1455 [email protected] • Commodity • Logistics • S-chips

Sukit UDOMSIRIKUL Head of Retail Research (66) 2658 6300 ext 5090 [email protected]

LEE Cheng Hooi Regional Chartist (603) 2297 8694 [email protected]

John CHEONG (65) 6432 1461 [email protected] • Small & Mid Caps • Healthcare

Tee Sze Chiah Head of Retail Research (603) 2297 6858 [email protected]

TRUONG Thanh Hang (65) 6432 1451 [email protected] • Small & Mid Caps

Mayuree CHOWVIKRAN (66) 2658 6300 ext 1440 [email protected] • Strategy

July 7, 2014

Sittichai DUANGRATTANACHAYA (66) 2658 6300 ext 1393 [email protected] • Services Sector

Surachai PRAMUALCHAROENKIT (66) 2658 6300 ext 1470 [email protected] • Auto • Conmat • Contractor • Steel Suttatip PEERASUB (66) 2658 6300 ext 1430 [email protected] • Media • Commerce Sutthichai KUMWORACHAI (66) 2658 6300 ext 1400 [email protected] • Energy • Petrochem Termporn TANTIVIVAT (66) 2658 6300 ext 1520 [email protected] • Property Woraphon WIROONSRI (66) 2658 6300 ext 1560 [email protected] • Banking & Finance Jaroonpan WATTANAWONG (66) 2658 6300 ext 1404 [email protected] • Transportation • Small cap Chatchai JINDARAT (66) 2658 6300 ext 1401 [email protected] • Electronics

VIETNAM LE Hong Lien, ACCA Head of Institutional Research (84) 844 55 58 88 x 8181 [email protected] • Strategy • Consumer • Diversified • Utilities THAI Quang Trung, CFA, Deputy Manager, Institutional Research (84) 844 55 58 88 x 8180 [email protected] • Real Estate • Construction • Materials Le Nguyen Nhat Chuyen (84) 844 55 58 88 x 8082 [email protected] • Oil & Gas NGUYEN Thi Ngan Tuyen, Head of Retail Research (84) 8 44 555 888 x 8081 [email protected] • Food & Beverage • Oil&Gas • Banking NGUYEN Trung Hoa, Dy Head of Retail Research (84) 8 44 555 888 x 8088 [email protected] • Macro • Steel • Real estate TRINH Thi Ngoc Diep (84) 4 44 555 888 x 8208 [email protected] • Technology • Utilities • Construction TRUONG Quang Binh (84) 4 44 555 888 x 8087 [email protected] • Rubber plantation • Tyres and Tubes • Oil&Gas PHAM Nhat Bich (84) 8 44 555 888 x 8083 [email protected] • Consumer • Manufacturing • Fishery NGUYEN Thi Sony Tra Mi (84) 8 44 555 888 x 8084 [email protected] • Port operation • Pharmaceutical • Food & Beverage

Padon VANNARAT (66) 2658 6300 ext 1450 [email protected] • Strategy

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Raffles Medical 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 security’s 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 jurisdiction’s 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, connected 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 currently 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, perform 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 MKE’s 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 report 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 disclaimers, 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 the 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 result, 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 prior 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 defined 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 registered 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 investments 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 Financial 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.

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Raffles Medical 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 the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Maybank Kim Eng Securities JSC (License Number: 71/UBCK-GP) is licensed under the State Securities Commission 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 registered 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 7 July 2014, Maybank KERPL and the covering analyst do not have any interest in any companies recommended 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 7 July 2014, 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 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report.

OTHERS Analyst Certification of Independence The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views 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 analysis 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.

Ong Seng Yeow | Executive Director, Maybank Kim Eng Research

Definition of Ratings Maybank Kim Eng BUY HOLD SELL

Research uses the following rating system Return is expected to be above 10% in the next 12 months (excluding dividends) Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends) 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.

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Raffles Medical  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

 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

 Singapore

Maybank Kim Eng Securities (London) Ltd 5th Floor, Aldermary House 10-15 Queen Street London EC4N 1TX, UK

Tel: (65) 6336 9090 Fax: (65) 6339 6003

Tel: (44) 20 7332 0221 Fax: (44) 20 7332 0302

 Hong Kong

Kevin FOY Regional Head Sales Trading [email protected] Tel: (65) 6336-5157 US Toll Free: 1-866-406-7447

 Indonesia

 New York 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

 India

Kim Eng Securities (HK) Ltd Level 30, Three Pacific Place, 1 Queen’s Road East, Hong Kong

PT Maybank Kim Eng Securities Plaza Bapindo Citibank Tower 17th Floor Jl Jend. Sudirman Kav. 54-55 Jakarta 12190, Indonesia

Kim Eng Securities India Pvt Ltd 2nd Floor, The International 16, Maharishi Karve Road, Churchgate Station, Mumbai City - 400 020, India

Tel: (852) 2268 0800 Fax: (852) 2877 0104

Tel: (62) 21 2557 1188 Fax: (62) 21 2557 1189

Tel: (91).22.6623.2600 Fax: (91).22.6623.2604

 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

 London

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

 Vietnam Maybank Kim Eng Securities Limited 4A-15+16 Floor Vincom Center Dong Khoi, 72 Le Thanh Ton St. District 1 Ho Chi Minh City, Vietnam Tel : (84) 844 555 888 Fax : (84) 8 38 271 030

 Saudi Arabia In association with

Anfaal Capital Villa 47, Tujjar Jeddah Prince Mohammed bin Abdulaziz Street P.O. Box 126575 Jeddah 21352 Tel: (966) 2 6068686 Fax: (966) 26068787

 North Asia Sales Trading Alex TSUN [email protected] Tel: (852) 2268 0228 US Toll Free: 1 877 837 7635

www.maybank-ke.com | www.maybank-keresearch.com

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