Co. Reg No: 198700034E MICA (P) : 099/03/2012

Singapore Sector Update

22 August 2013

Aviation Services

Overweight

Buy The Cash Cows Derrick HENG [email protected] (65) 6432 1446

Figure 1: Positive long-term trend for global traffic 3.5 3.0

World Passengers Carried ('bn)

2.5

CAGR 1972-2012: 5.2%

Participating in global aviation growth with home ground advantage. Based on the latest market forecasts from Boeing, global air traffic looks set to continue growing at approximately 5% p.a. over the next 20 years. Closer to home, Changi Airport is expected to double its passenger handling capacity by the mid-2020s in anticipation of increasing long-term air travel demand. As the dominant gateway services and MRO providers at Changi Airport, SATS and SIAEC are direct beneficiaries of this long term growth story.

2.0 1.5 1.0 0.5

2008

2003

1998

1993

1988

1983

1978

1973

0.0

Source: ICAO, Maybank KE

Historical chart Aviation Service Composite

24,000

STI rebased

22,000 20,000 18,000 16,000

Dec-13

Sep-13

Jun-13

Mar-13

Dec-12

Sep-12

Jun-12

Mar-12

Dec-11

14,000 12,000

Source: Bloomberg, Maybank KE Sector recommendations Share price Rec (SGD) SIA Engineering Buy 4.73 SATS Buy 3.16 ST Engineering Buy 4.01 Source: Bloomberg, Maybank KE

Target price (SGD) 6.19 4.05 4.80

Up/ down (%) 31% 28% 20%

Sector valuations FY13/14 PER (x) SIA Engineering 19.1 SATS 17.0 ST Engineering 19.9 Source: Bloomberg, Maybank KE

FY13/14 P/BV (x) 3.9 2.5 6.2

Specific catalysts in the works. We believe that there are specific catalysts in the works for the three aviation services companies in this report – SATS, SIA Engineering and ST Engineering. For SATS, we believe that the market will continue to re-rate the stock in anticipation of structurally higher dividends. SIAEC could unlock hidden value within the JVs via a separate listing, in our view. While competition is stiff, we believe that STE could announce progress on a major project tender soon that it is pursuing in the US market.

FY13/14 yield (%) 4.9% 5.1% 4.6%

Outsourcing trend by airlines benefits Singapore MRO players. The outsourcing of maintenance work by airlines had been a key driver of growth for the global MRO industry. As the first and fourth largest airframe maintenance companies in the world, STE and SIAEC will benefit from the 18% increase in outsourcing that is expected for heavy airframe maintenance works over the next decade. The engine maintenance segment will exhibit the largest increase by absolute spending over the next nine years. SIAEC has a strong position in the widebody aircraft engine maintenance segment via its strategic ventures with OEMs. As an authorised service centre for the CFM56 engine for narrowbody aircraft, STE would also benefit from the growth in engine maintenance. Defensive premium deserved, BUY with preference for SIA Engineering, SATS and ST Engineering. Although they have outperformed the broader market over the past two years, we are still positive about their prospects and maintain our BUY ratings with 2031% upside to our target prices. Earnings stability coupled with a positive long-term outlook implies that valuations for these counters will remain above historical levels. Of the trio, SIAEC is our top pick as it is a pure play to the aviation growth story in the region. Furthermore, we believe that there is hidden value within the group that is not fully appreciated by the market. At current market prices, we expect the sector to offer dividend yields of 4.6-5.1% in the year ahead. We believe that these defensive dividend plays will continue to find favour in the current weak market conditions.

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

Aviation Services

Key catalysts for each stock In our view, SIAEC, STE and SATS stand to benefit from the structural air traffic growth in the region. While all three provide aviation-related services, they differ in specific businesses and geographical exposure, as summarised in the table below. Figure 2: Aviation services companies – summary of business and geographical exposure Aviation Exposure Sum m ary

MRO nil X X

SATS SIAEC ST Aerospace

Business Ground handling & Catering X nil nil

Defence

Singapore

China

Geographical US

Europe

Japan

nil nil X

X X X

min. min. X

nil min. X

nil min. X

X nil nil

Source: Maybank KE

We expect SATS to pay structurally higher dividends Note on Changi Airport expansion: The Singapore government recently announced expansion plans to construct a third runway and would double its current terminal capacity by mid 2020s. Codenamed “Project Jewel”, the existing Terminal 1 will also be upgraded and the 3 existing terminals linked up

SATS: Proxy to Changi growth, rebound at TFK Corp., structurally higher dividends. SATS is a dominant player in Changi Airport, with a 74% share of the ground handling market (FY13: 36% of sales, 11% of EBIT) and 85% share of the inflight catering market (FY13: c.27% of sales, EBIT n.a.). The airport’s ongoing expansion for growth augurs well for the group. TFK Corp, SATS’ inflight catering arm in Japan, would benefit from Japan’s increased focus to promote tourism in the country. With its ungeared balance sheet and solid FCF profile, the key reason to buy SATS is our expectations that they will pay out structurally higher dividends overtime. Figure 3: SATS – network of JVs provides regional exposure

Source: Company

SIAEC could unlock hidden value via separate listings of JVs

22 August 2013

SIAEC: Proxy to Changi growth, heavy maintenance growth into Philippines, hidden value at JVs. SIAEC is also a dominant player in Changi Airport, but in line maintenance where it has a 70% share of the market (FY13: 37% of sales, 69% of EBIT). As line maintenance work is highly correlated with flight traffic, the airport’s ongoing expansion is also positive for SIAEC. To cope with the expanding heavy maintenance business (FY13: 63% of sales, 31% of EBIT), SIAEC is looking beyond its six hangar facilities in Singapore to the Philippines to access cheaper labour. We see hidden value at its JVs that could be unlocked via a separate listing.

Page 2 of 30

Aviation Services

Figure 4: SIAEC – global presence with focus on Singapore

Source: Company

STE could announce progress on a major project tender soon

STE: Industrial conglomerate with aerospace focus, unique defence play, long-term visibility with SGD12.7b order book. ST Engineering (STE) is a conglomerate focused on the aerospace industry (FY12: 32% of sales, 42% of PBT). As the largest third-party MRO service provider in the world, its aerospace division, ST Aerospace, stands to benefit from the secular outsourcing trend in the commercial airline industry. With defence-related work making up 37% of its sales, STE offers unique exposure to the defence industry and is a major contractor of the Singapore defence force. Its SGD12.7b order book also offers long-term revenue visibility. Figure 5: ST Aerospace – global presence with focus on US and Singapore

Note: Increased presence in Europe with recently acquired 35% stake in EADS EFW. Source: Company

22 August 2013

Page 3 of 30

Aviation Services

Steady financial flight path Steady earnings profile despite cyclical nature of the aviation industry

Steady growth in earnings. Underpinned by stable business models, we note that all three aviation services companies have very steady earnings profiles despite the cyclical nature of the aviation industry. Hence, we argue that these companies are defensive in nature and will continue to be valued for their stability. While they do not appear cheap vis-à-vis their P/E valuation history, we expect the positive industry outlook to keep valuations elevated for the sector. Furthermore, we see stock-specific drivers (see individual company sections at the end of the report) that would continue to sustain interest in these companies.

Figure 6: Steady net income profile (SGD’m) SIAEC

300

800 Dip caused by SARS

500

200

400

150

FY15E

FY14E

FY12

FY13E

FY11

FY10

FY09

FY08

FY07

FY00

FY16E

FY15E

FY13

FY14E

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY04

FY03

FY02

FY01

FY16E

FY15E

FY13

FY14E

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY04

0

FY03

0

FY02

100

0 FY01

200

50

FY06

300

100

50

FY05

100

FY04

150

Global Financial Crisis

600

250

200

STE

700

FY03

350

Steady growth post transformation

FY02

Strategic transformation with acquisition of SFI

SATS 250

FY01

300

Source: Maybank KE

Strong FCF levels drive sustainable dividends. Driven by strong FCF levels, all three companies have a strong track record of steadily increasing their dividends over the past years. As dividends from associates and JVs form a core part of the cash generated by these companies, we defined FCF as the sum of 1) CFO, 2) dividends from associates and JVs, and 3) net capex.

Strong FCF levels drive sustainable dividends

Figure 7: Strong FCF levels... (SGD’m)

FY13E

FY14E

FY15E

FY13E

FY14E

FY15E

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY16E

FY15E

FY14E

FY13

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY04

FY01

FY16E

FY15E

FY14E

FY13

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY04

FY03

FY02

0

FY01

50

0

FY03

100

50

FY04

150

100

FY03

200

150

STE

FY02

250

200

900 800 700 600 500 400 300 200 100 0

FY01

SIAEC

300

FY00

350

SATS

250

FY02

300

Source: Maybank KE

Figure 8: ... drive sustainable dividends (SGD cents) 35

45

SATS

25

Special dividends

SIAEC

30

25

Special dividends

STE

Consistently pays special dividends

20

25

20 15 10

20

15

15

10

10

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY04

FY03

FY02

FY01

0 FY00

FY16E

FY15E

FY14E

FY13

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY04

FY03

5

FY02

FY16E

FY15E

FY14E

FY13

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY04

0

FY03

0 FY02

5 FY01

5

FY01

30

Source: Maybank KE

22 August 2013

Page 4 of 30

Aviation Services

Our Top Preferred Stocks SIAEC: Buy TP: SGD6.19

SIAEC: We value SIAEC at SGD6.19 using SOTP methodology as we believe it would better reflect the underlying value of the group’s associates and JVs. Almost half of our valuation of the stock resides in the group’s key JVs with Rolls-Royce (SAESL + IECO), reflecting the positive outlook and strong economic moats of their business. While P/E multiples appear rich relative to the historical trading range, we argue that there is hidden value within its business units that are not fully reflected via a P/E valuation method. Special dividends and separate listings of its units are potential stock catalysts, in our view. We forecast CAGR of 4.9% over the next 3 years.

SATS: Buy TP: SGD4.05

SATS: Our DCF valuation (WACC: 7.6%; terminal g: 1.0%) pegs SATS’s TP of SGD4.05, implying 18x FY15F PER as we believe the market would continue to re-rate the stock in anticipation of structurally higher dividends. Successful acquisitions of value-enhancing companies and stronger-than-expected earnings contribution from TFK Corp are potential stock catalysts, in our view. We forecast CAGR of 9.0% over the next 3 years.

ST Engineering: Buy TP: SGD4.80

ST Engineering: We value STE using 23x FY13/14F PER to derive our TP of SGD4.80. The peg to the near historical peak PER reflects our positive view on the company that is underpinned by the strong order book of SGD12.7b (2x annual sales). STE trades at an undemanding market capitalisation-to-order ratio of 1.0x, which is below its market cycle average of 1.2x. Increase in dividend payout ratio and major contract wins are potential stock catalysts, in our view. We forecast CAGR of 7.0% over the next 3 years.

Figure 9: Forward PER (x) (from left: SATS, SIAEC, STE) 25

Fwd P/E (X)

25

Fwd P/E (X)

20

Dec-13

Dec-12

Dec-11

Dec-10

Dec-09

Dec-08

Dec-07

Dec-06

Dec-05

Dec-04

Dec-03

Dec-02

Dec-01

Dec-00

10

Dec-99

Dec-13

Dec-12

Dec-11

Dec-10

Dec-09

Dec-08

Dec-07

Dec-06

Dec-05

Dec-04

Dec-03

Dec-02

15

Dec-01

Dec-13

Dec-12

Dec-11

Dec-10

Dec-09

Dec-08

Dec-07

0 Dec-06

0 Dec-05

5 Dec-04

5 Dec-03

10

Dec-02

10

Dec-01

15

Dec-00

15

Dec-99

20

20

Dec-00

Fwd P/E (X)

Dec-99

25

Source: Maybank KE

22 August 2013

Page 5 of 30

Aviation Services

Participating In A Global Growth Sector With Home Ground Advantage Boeing forecasts global air traffic growth of 5% pa over the next 20 years

Air traffic growth is a structural global theme. Despite numerous recessions and shocks to the industry, global air traffic had been on a long-term uptrend and doubling approximately every 15 years. Based on the latest market forecasts from Boeing, this trend looks set to continue with annual growth of approximately 5% over the next 20 years. Driven by increasing propensity to travel and the ongoing liberalisation of airspace, Asia-Pacific air traffic is expected to exhibit above-average growth of more than 6% p.a. over the next 20 years.

Aviation services companies offer a more defensive exposure to this long-term uptrend than airlines

While investors want exposure to this positive long-term uptrend, they are often hesitant to buy into airlines, citing the cyclical nature of the business and poor earnings visibility as reasons to avoid such stocks. With a less cyclical earnings profile, we believe that aviation services companies offer a more defensive exposure to this long-term uptrend compared with airlines.

Figure 10: Positive long-term trend for global air traffic

Figure 11: markets

Asia-Pacific

among

fastest-growing

3.5 3.0

World Passengers Carried ('bn)

2.5

CAGR 1972-2012: 5.2%

2.0 1.5 1.0 0.5

2012

2007

2002

1997

1992

1987

1982

1977

1972

0.0

Source: ICAO

Source: Boeing CMO 2013

Positive traffic forecasts backed by huge order backlog at the Boeing and Airbus

Record aircraft deliveries a bullish indicator. The bullish long-term market forecast by Boeing is backed by the strong order book at the two largest aircraft manufacturers. As of 30 Jun 2013, the commercial divisions of Boeing and Airbus have order backlog of 4.8k and 5.1k aircraft, which translates to approximately 8x and 9x of their respective deliveries in the previous year. According to the latest market forecasts by Boeing, Asia Pacific is expected to be the key source of global fleet growth. Over the next 20 years, approximately 13k aircraft is expected to be delivered to this region, which would triple its existing fleet to almost 15k aircraft by 2032.

Figure 12: Over the next 20 years, Asia Pacific will see almost 13,000 aircraft delivered...

Figure 13: …driving the region’s aircraft fleet to three times its current level 50,000

Asia Pacific

40,000

North America 12,820

Europe Latin America

Africa Middle East Europe Asia Pacific

C.I.S. Latin America North America

30,000 20,000

Middle East C.I.S.

10,000

Africa 0

14,750 5,090 2012

Source: Boeing CMO 2013

22 August 2013

2032

Source: Boeing CMO 2013

Page 6 of 30

Aviation Services

Changi Airport One Of The World’s Busiest Airports In Expansion Mode Among the world’s busiest airports, Changi Airport continues to plan ahead for growth

According to traffic data by Airport Council International, Changi Airport is currently ranked the 12th busiest airport in the world. Unlike some of the regional airports where infrastructure constraints lead to persistent congestion issues, Changi Airport is constantly ahead of the curve in upgrading its infrastructure. Although current passenger throughput is still below its annual handling capacity (2012: 51.2m passengers; c.78% of capacity) of 66m passengers, the airport has already embarked on the construction of its fourth airport terminal (T4) in anticipation of traffic growth. Upon T4’s completion in 2017, the annual handling capacity would increase by 29% from the current levels to 85m passengers. And even while T4 is being built, the government is making plans for a fifth terminal (T5), which could well double the total capacity from its current levels to 132m passengers.

Figure 14: World’s busiest airports by passenger traffic Ranking 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Airport Atlanta GA, US (ATL) Beijing, CN (PEK) Dubai, AE (DXB) London, GB (LHR) Los Angeles CA, US (LAX) Tokyo, JP (HND) Chicago IL, US (ORD) Dallas/Fort Worth TX, US (DFW) Jakarta, ID (CGK) Hong Kong, HK (HKG) Bangkok, TH (BKK) Singapore, SG (SIN) Paris, FR (CDG) Denver CO, US (DEN) Guangzhou, CN (CAN)

Passenger traffic ('k) Ranking Airport 7,010 16 Frankfurt, DE (FRA) 6,464 17 New York NY, US (JFK) 5,560 18 Incheon, KR (ICN) 5,188 19 Shanghai, CN (PVG) 5,075 20 Istanbul, TR (IST) 4,984 21 Miami FL, US (MIA) 4,810 22 Kuala Lumpur, MY (KUL) 4,660 23 Amsterdam, NL (AMS) 4,652 24 Sydney, AU (SYD) 4,585 25 Charlotte NC, US (CLT) 4,507 26 Sao Paulo, BR (GRU) 27 Phoenix AZ, US (PHX) 4,326 4,325 28 San Francisco CA, US (SFO) 4,025 29 Las Vegas NV, US (LAS) 3,999 30 Houston TX, US (IAH)

Passenger traffic ('k) 3,877 3,727 3,603 3,531 3,531 3,492 3,410 3,392 3,304 3,290 3,257 3,219 3,205 3,125 3,112

Source: Airport Council International (based on traffic data for Jan 2013)

Increased focus on tourism. ASEAN Open Skies agreements to structurally increase traffic levels

22 August 2013

Fast growing regional travel benefits Changi. Driven by short-haul budget carriers, traffic between Singapore and other Southeast Asian countries, the largest market segment for Changi Airport (2012: 44%), increased by 10% pa from 2006 to 2012. ASEAN is currently working on the ASEAN Tourism Strategic Plan (ATSP) 2011-2015 to promote tourism as a key economic driver in the region. Apart from the collective effort by the ASEAN community, the Singapore Tourism Board (STB) has long communicated its target of 17m visitors by 2015. With more than three quarters of visitors into Singapore travelling by air, the aviation industry will continue to benefit from this focus to promote tourism growth. While not as liberal as US and Europe, ASEAN also aims to establish a single aviation market by 2015. The ASEAN Open Skies agreements aim to reduce barriers to travel within the region and would structurally increase traffic levels within the region. (See ASEAN Open Skies by Mohshin Aziz, dated 21 Jun 2013, for more information on this topic.)

Page 7 of 30

Aviation Services

Figure 15: Passenger traffic grew at 6.5% CAGR from 2006 to 2012 55

51.2

CAGR 06/12: 6.5%

50

Figure 16: Fast-growing Southeast Asian passenger traffic accounts for 44% of traffic at Changi Airport South East Asia

46.5

45

42.0

40 35.0

37.7

36.7

2012

North East Asia South Asia

37.2

2006 12.4

Middle East

35

21.9 10.0%

Oceania

30

Europe

25

North America

8.7

Other Regions

20 FY06

FY07

FY08

FY09

FY10

FY11

6.1% 12.4

FY12

Source: Changi Airport Group

Note: Excludes transit traffic Source: Changi Airport Group, Maybank KE

Figure 17: Changi Airport expanding to accommodate growth 2012 Capacity 66 ('m n pax/yr) T1 21 T2 23 T3 22 T4 T5 Expansion from current

2017E 85 24 23 22 16 29%

m id-2020s 132 24 23 22 16 47 100%

Figure 18: Southeast Asia related air traffic forecast to be 3.5x the current levels by 2032 2,500

2,122

2,000 CAGR 2005/12: 5.4%

1,500

CAGR 2012/32E: 6.5%

1,000 608 500

420

Source: Changi Airport Group, Maybank KE est.

2032

2012

2011

2010

2009

2008

Figure 20: Singapore visitor arrival split, 2011 (m, %)

20 17.0 13.2

2007

Source: Boeing CMO 2013, Maybank KE

Figure 19: Singapore targets 17m tourists in 2015

15

2006

2005

0

Sea, 1.3 , 10%

14.4

11.6 10

8.9

9.8

10.3 10.1

9.7 Land, 1.7 , 13%

5

Air , 10.1 , 77%

0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Source: Singapore Tourism Board

22 August 2013

FY15E Source: Singapore Tourism Board

Page 8 of 30

Aviation Services

Airline Outsourcing Trend Adds A Second Tailwind Airlines to continue outsourcing maintenance work to MRO service providers

In order to focus on their core business, airlines have been outsourcing more maintenance work to MRO service providers. According to ICF SH&E, an aviation consultancy, this trend is expected to continue in the years ahead. Due to the dominance of OEMs in the market, outsourcing of maintenance work is already very high in the engines and components segments. Even for the less penetrated line and heavy airframe maintenance segments, outsourcing is expected to increase by a significant 23% and 18% respectively by 2022E. As one of the largest third-party MRO service providers in the world, we expect ST Engineering to be a key beneficiary of this secular outsourcing trend by airlines. The outsourcing trend is evident when we compare the biennial survey results by Overhaul & Maintenance magazine. The largest independent players have all exhibited significantly higher airframe man-hours output between 2008 and 2012 (ST Aero: +35%, HAECO: +38%, AAR Corp.: +38%).

Figure 21: MRO outsourcing trend to continue 100% 80%

85%

82%81%

78%76%

30%

89% 74%

61%

56%

60%

Figure 22: Line and heavy airframe maintenance outsourcing to increase the most by 2022E 23% 18%

20% 42%

40%

2022E vs 2010

25%

29%

10%

19%

20%

13%

15% 7%

5%

Engines

Components

Line

2022E

2016E

2010

0%

0%

Heavy Airframe

Source: ICF SH&E, Maybank KE

22 August 2013

Page 9 of 30

Aviation Services

Singapore Key Players In Biggest Growth Segments Global MRO spending is expected to increase by 4.1% p.a. to 2022

Engine maintenance is the largest sub market segment and is a space dominated by original equipment manufacturers (OEMs). North America is currently the largest market by geography. According to forecasts by ICF SH&E, global MRO spending is expected to increase by 4.1% p.a. from USD59.2b to USD84.7b in 2022. In terms of absolute increase in spending, the engine maintenance market would represent the largest area of growth, with spending rising by USD10.2b. Geographically, the increase in MRO spend is expected to be the highest in Asia Pacific exChina, at USD6b over the next nine years. As the first and fourth largest maintenance companies by airframe manhours, STE and SIAEC would benefit from the 18% increase in outsourcing for heavy airframe maintenance works over the next decade. While the increase in outsourcing would taper off a high base for the engine maintenance segment, it remains the largest sub market segment and will exhibit the largest increase by absolute spending over the next nine years. With its strategic ventures with OEMs, SIAEC have a strong positioning in the widebody aircraft engine maintenance segment. As an authorised service centre for the CFM56 engine, STE would participate in the largest engine maintenance market.

Figure 23: MRO spend by type, 2012 (%) Heavy Airframe 21%

Figure 24: MRO spend by region, 2012 (%) ROW 16%

Engines 39%

North America 31%

China 9% Line 18%

Asia-Pac ex-China 18%

Component s 22%

Europe 26%

Source: ICF SH&E

Source: ICF SH&E

Figure 25: MRO spend by type, 2013 vs 2022 (USD b)

Figure 26: MRO spend by region, 2013 vs 2022, (USD b)

Source: ICF SH&E (in 2013 USD)

22 August 2013

6.0 2.4

Latin America

North America

1.8

1.8

Western Europe

2.6

Africa

2.6

Russia/CIS/E.E urope

4.1

China

4.2

Middle East

Line

Components

3.5

5.6

Heavy Airframe

6.2

7 6 5 4 3 2 1 0

Asia-Pac exChina

10.2

Engines

12 10 8 6 4 2 0

Source: ICF SH&E (in 2013 USD)

Page 10 of 30

Aviation Services

Scarcity Premium Deserved ST Aerospace & SIAEC are among the largest global MRO service providers

Despite the good prospects of this sector, it is difficult to find standalone investible stocks. According to a recent survey conducted by Overhaul & Maintenance magazine, ST Engineering and SIAEC were among the largest global MRO service providers by airframe man-hours clocked in 2012. Apart from two other listed peers, HAECO & AAR Corp., most other major players are either privately held or listed as part of an airline group. In fact, as STE has other non-aviation businesses, SIAEC is the only pure play.

Figure 27: ST Aerospace and SIAEC among the largest MRO players 12

11.5

10 8 6 4

7.4 4.6

4.2

4.1

3.9

3.2

2.8

2.5

2.3

2.2

1.9

2

1.9

1.8

1.5

0

Source: Overhaul & Maintenance Survey (rank by 2012 airframe man-hours)

Based on a recent survey conducted by Airline Economics, the two companies under our coverage were also ranked among the top service providers. The survey conducted took into account votes from lessors, airlines, aircraft/engine owners and OEMs in 2012. Figure 28: MRO of the year 2013 Rank 1 2 3 4 5 6 7 8 9 10

Maintenance Provider Monarch Aircraft Engineering Ltd ST Aerospace Lufthansa Technik (inc all subsids) Delta Tech Ops SIA Engineering Com pany AFI-KLM E&M MTU Maintenance (all subs) Maintenance Iberia / BA Maintenance Mabadala (SRT/ADAT) HAECO/STARCO (Plus all affiliates)

Final score 102.6 102.0 101.5 101.0 100.8 99.6 98.1 98.1 97.2 96.8

Source: Airline Economics

22 August 2013

Page 11 of 30

Aviation Services

Appendix 1. SIAEC’s and ST Aerospace’s exposure to subsectors Figure 29: ST Aerospace and SIAEC among the largest MRO players

Engines

Heavy Airframe

SIAEC holds strategic stakes in three key engine repair and overhaul joint ventures with major engine manufacturers Pratt & Whitney and Rolls-Royce: Singapore Aero Engine Services Pte Ltd (SAESL) (50%), Hong Kong Aero Engine Services Pte Ltd (HAESL) (10%) and Eagle Services Asia Pte Ltd (ESA) (49%). ST Aerospace is an authorised service centre for the fast-growing CFM56 maintenance market, with two key facilities in Singapore (STA Engines) and Xiamen (STATCO). The company also offers engine leasing services and is a TRUEngine service provider, which implies that the CFM56 engines serviced by the company would typically have higher residual values.

SIAEC offers airframe maintenance services at the six hangars in Singapore and holds the majority stake in a JV with Cebu Pacific in the Philippines. ST Aerospace has a network of hangar facilities in Singapore, San Antonio, Mobile, Panama, Shanghai and Guangzhou. According to a recent survey by Overhaul & Maintenance magazine, SIAEC and ST Aerospace are among the largest players, with 4.2m and 11.5m manhours clocked respectively in 2012.

Components

Line

SIAEC provides component maintenance and overhaul services at their workshops and six other JVs. ST Aerospace offers component maintenance-by-the-hour contracts to various airlines including AirAsia, Spring Airlines and China Airlines.

SIAEC is the largest line maintenance company at Changi Airport and offers exposure to Hong Kong, Indonesia, the Philippines, Australia, the US and Vietnam via stakes in JVs. ST Aerospace launched line services at Changi in 2011, albeit relatively smaller in scale.

Source: Maybank KE

Figure 30: Engine MRO market, 2012 IAE 6.7% Power Jet 0.0%

GE-P&W alliance 0.4% Honeywell 0.4%

P&W 16.6% CFMI 32.7% RR 16.6%

GE 26.5%

Source: TeamSAI

22 August 2013

Page 12 of 30

Aviation Services

Appendix 2. Dominant players at Changi Airport SATS is a dominant player at Changi Airport. Fears over competitive pressures from ASIG appear to be overdone

SATS – dominant gateway services and inflight catering at Changi Airport. SATS and Dnata Singapore have a long history of operations at Changi Airport, with the former holding the dominant market share of 74% for the gateway services (ground and cargo handling) market. After Changi Airport Group awarded a third ground handling licence to ASIG in 2011, there was widespread concern over competitive pressure for the two existing players. However, two years have passed since the licence was awarded and ASIG has yet to win any customers from the other two players. We believe competitive pressures could be receding. Besides ground and cargo handling, SATS also holds the majority market share of 85% for the inflight catering business. With a duopolistic market structure, we believe that the competitive landscape is benign and expect sales and profits to grow in tandem with traffic throughput at the airport.

Figure 31: Gateway services market share

Figure 32: Inflight catering market share

ASIG, 0% Dnata Singapore, 15%

Dnata Singapore, 26%

SATS, 74% SATS, 85%

Source: SATS

SIAEC is a dominant player at Changi Airport. Its competitive position and scale of operations allow for operating margins of over 20%

SIAEC – dominant line maintenance service provider at Changi Airport. SIAEC is the largest line maintenance service provider at Changi Airport. Apart from flights handled by SIAEC, some airlines set up their own line maintenance stations or utilise the services of other companies such as Dnata Singapore, SHAECO or ST Aerospace. Its strong competitive position and scale of operations allows SIAEC to consistently enjoy healthy operating margins of over 20%. We expect sales and profits to grow in tandem with traffic throughput at the airport. Figure 33: Line maintenance market share

Others, 30%

SIAEC, 70%

Source: Maybank KE estimates

22 August 2013

Page 13 of 30

22 August 2013

Aviation Services Com pany Rating Price Market price as of: (LC) 21-Aug-13 SATS Buy 3.16 SIA Engineering Buy 4.73 ST Engineering Buy 4.01 MRO Services HAECO N.R. 104.9 AAR Corp. N.R. 25.27 Ground Handling & Inflight Catering BBA N.R. 294.5 John Menzies N.R. 738.0 Autogrill N.R. 11.86 Gategroup N.R. 21.50 Average Source: Bloomberg, Maybank KE

Singapore Transportation Sector Com pany Rating Price Market price as of: (LC) 21-Aug-13 Airlines Singapore Airlines Hold 9.84 Tiger Airw ays N.R. 0.56 Aviation Services SATS Buy 3.16 SIA Engineering Buy 4.73 ST Engineering Buy 4.01 Container Shipping NOL Hold 1.06 Land Transport SMRT Sell 1.37 ComfortDelGro Buy 1.83 Vicom N.R. 4.70 SBS Transit N.R. 1.38 Average Source: Bloomberg, Maybank KE *12 refers to FY13 for FYE Mar, Consensus 28% 31% 20% 21% -27% 28% n.a. n.a.

4.05 6.19 4.80

1.28

1.00 2.33 n.a. n.a.

Mar Dec Dec Dec

Dec

Mar Mar Dec

Mar Mar

SGD SGD SGD SGD

SGD

SGD SGD SGD

SGD SGD

4.05 6.19 4.80

TP (LC) (%) 28% 31% 20% HKD USD GBp GBp EUR CHF

Dec Dec Dec Dec

2,218 702 4,041 627 3,051

2,250 990

Crncy Market Cap. (USD) SGD 2,772 SGD 4,117 SGD 9,740

Dec May

Mar Mar Dec

UpsideFYE

1,631 3,032 325 332 3,355

2,137

2,772 4,117 9,740

9,034 428

2,674 869 5,182 942 3,282

2,457 1,625

Ent. Value (USD) 2,559 3,651 9,574

2,029 3,567 271 557 3,394

5,604

2,559 3,651 9,574

5,415 710

Crncy Market Ent. Cap. Value (USD) (USD)

for Not Rated (N.R.) stocks

5% n.a.

(%)

UpsideFYE

10.30 n.a.

TP (LC)

19.2 20.5 32.5 n.a. 21.1

19.9 18.0

12 17.5 19.5 21.6

20.7 15.6 15.4 22.3 20.2

n.a.

17.5 19.5 21.6

29.0 n.a.

12

15.6 10.8 30.3 21.6 19.0

24.4 12.7

P/E (X) 13E 17.0 19.1 19.9

23.7 14.9 n.a. n.a. 18.7

n.a.

17.0 19.1 19.9

22.8 13.3

P/E (X) 13E

14.5 10.2 24.8 13.5 16.0

18.4 11.4

14E 14.4 17.6 18.9

17.9 14.2 n.a. n.a. 15.1

8.0

14.4 17.6 18.9

18.2 11.9

14E

2.2 5.5 3.7 2.3 3.4

3.0 1.1

12 2.5 4.0 6.6

2.7 1.9 3.4 1.2 2.7

1.0

2.5 4.0 6.6

0.9 2.7

12

2.1 n.a. 3.3 2.2 3.4

n.a. n.a.

P/B (X) 13E 2.5 3.9 6.2

2.5 1.8 n.a. n.a. 2.5

0.9

2.5 3.9 6.2

0.9 1.1

P/B (X) 13E

1.9 n.a. 3.2 2.0 3.2

n.a. n.a.

14E 2.4 3.8 5.9

2.3 1.7 n.a. n.a. 2.4

0.8

2.4 3.8 5.9

0.8 1.1

14E

12% 26% 12% -19% 13%

15% 6%

12 14% 21% 31%

13% 13% 24% 5% 9%

-17%

14% 21% 31%

3% -20%

12

14% 46% 10% 9% 18%

12% 7%

ROE (%) 13E 15% 21% 32%

11% 13% n.a. n.a. 13%

-6%

15% 21% 32%

4% 16%

ROE (%) 13E

14% 39% 11% 14% 21%

15% n.a.

14E 17% 22% 32%

14% 12% n.a. n.a. 15%

11%

17% 22% 32%

5% 10%

14E

n.a.

1.9%

0.6 0.0 (0.6) 0.8 0.3

1.6

(0.2) (0.4) (0.2)

(0.4) 2.0

3.2% 3.5% n.a. n.a. 3.4%

3.2% 3.6% 1.7% 1.0% 3.3%

3.4% 3.7% 2.0% 2.1% 3.7%

2.7% 2.2% 3.0% 1.2% n.a. n.a.

0.4 1.2 1.8 1.0 0.5

0.0 0.7

Dividend yield Net (%) Gearing 12 13E 14E (X) 4.7% 5.1% 5.4% (0.2) 4.7% 4.9% 5.1% (0.4) 4.2% 4.6% 4.8% (0.2)

1.8% 1.8% 1.8% 3.5% 3.6% 3.7% 3.3% n.a. n.a. 2.2% n.a. n.a. 3.3% 3.8% 3.7%

n.a.

4.7% 5.1% 5.4% 4.7% 4.9% 5.1% 4.2% 4.6% 4.8%

2.3% 3.0% 3.0% n.a. n.a. n.a.

Net Dividend yield Gearing (%) 12 13E 14E (X)

Aviation Services

Page 14 of 30

Co. Reg No: 198700034E MICA (P) : 099/03/2012

Singapore Sector Update

22 August 2013

SATS

Buy (unchanged) Share price: Target price:

Structural Re-rating On Higher Dividends

SGD3.16 SGD4.05 (unchanged )

Maintain BUY and TP of SGD4.05. We value SATS using the DCF methodology (WACC: 7.6%; terminal g: 1.0%) and arrive at a TP of SGD4.05. Our TP implies 18x FY15F PER as we believe that the market will continue to re-rate the stock in anticipation of structurally higher dividends. Successful acquisitions of value-enhancing companies and stronger-than-expected earnings contribution from TFK Corp are potential stock catalysts, in our view.

Derrick HENG [email protected] (65) 6432 1446

Stock Information Description: SATS is a dominant provider of inflight catering and ground handling services in Changi Airport. The group also holds a majority stake in TFK Corp, an inflight catering service provider in Japan. Ticker: Shares Issued (m): Market Cap (USD m): 3-mth Avg Daily Turnover (USD m): ST Index: Free float (%):

SATS SP 1,121.5 2,772.1 3.0 3,109.0 56.9 % 43.1

Major Shareholders: Temasek Holdings

Key Indicators ROE – annualised (%) Net cash (SGD m): NTA/shr (SGD): Interest cover (x):

14.7 364 1.31 n.m.

Historical Chart 3.50

SATS SP Equity

Structurally higher dividends. We see a multi-year re-rating of SATS as we believe the company is likely to structurally increase its dividend distribution to shareholders. SATS announced special dividends in the past three years and we expect this to be the new normal. Management has expressed its desire to optimise capital structure (long-term target: net debt-to-equity of 0.3x), which we view as a signal for structurally higher dividend distributions to shareholders. Sufficient funding for M&A. Even after factoring in progressive increments in dividends over the next three years, we forecast a net cash position of more than SGD400m by end-FY16F. This implies that SATS would have a sizeable war chest of approximately SGD900m, if it succeeds in achieving a capital structure with net debt-to-equity of 0.3x by end-FY16F. Beneficiary of long-term tourism growth in Japan. As part of the restructuring of Japan Airlines, SATS acquired a 50.7% stake in Tokyo Flight Kitchen (TFK Corp). This has allowed the company to extend its geographical reach and gain access to Japan’s inflight catering market. The Japanese government is targeting to achieve 30m visitor arrivals by 2030 (implied CAGR of 7.4%) as part of its efforts to restructure the domestic economy. This would, in turn, drive traffic growth for the aviation industry. While the sharp depreciation of the JPY would impact the SGD-translated contributions to SATS, we believe that the net effect for the company will still be positive. SATS – Summary Earnings Table

3.00

FYE Mar (SGD m) Revenue EBITDA Recurring Net Profit Recurring EPS (cents) EPS growth (%) DPS (cents)

.

2.50

2.00 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13

Performance: 52-week High/Low

Absolute (%) Relative (%)

SGD3.32/SGD2.53

1-mth

3-mth

6-mth

1-yr

YTD

-1.9 1.4

-1.6 9.1

8.8 15.1

25.0 23.2

10.7 12.8

PER EV/EBITDA (x) Div Yield (%) P/BV(x) Net Cash (SGD’m) ROE (%) ROA (%) Consensus Net Profit (SGD m) Source: Maybank KE

2012 1,685 266 178 16.0 -1.5% 26.0

2013 1,819 285 202 18.2 13.8% 15.0

2014F 1,876 301 209 18.7 3.2% 16.0

2015F 2,041 343 246 22.1 17.7% 17.0

2016F 2,130 362 262 23.5 6.6% 18.0

19.5 12.3 8.2% 2.5

19.1 11.5 4.7% 2.4

17.1 10.9 5.1% 2.3

14.4 9.5 5.4% 2.2

13.5 9.0 5.7% 2.1

314 11.9% 8.3%

274 12.7% 9.0%

310 14.6% 10.5% 211

360 16.8% 12.2% 229

418 17.1% 12.5% 248

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

SATS

Re-rating on structurally higher dividend payouts. SATS has been generous in distributing surplus cash to shareholders, as evidenced by its dividend distribution history. Management has previously expressed its desire to optimise capital structure with a long-term target net gearing of 0.3x. Even after factoring in incrementally higher DPS over the next three years, we continue to expect SATS to be in a net cash position of SGD418m by end-FY16F. SATS would have surplus cash of approximately SGD900m should it succeed in achieving its net gearing target of 0.3x by end-FY16F. In our view, this cash position would be sufficient to fund a decently sized acquisition.

We expect SATS to re-rate on structurally higher dividends

Figure 34: Ungeared balance sheet offers upside dividend surprise 0.4

DPS, RHS (Scents)

0.3

Net Gearing, LHS (X)

30 25

0.2 20

0.1 0.0

15

(0.1)

10

(0.2) 5

(0.3) (0.4) FY16E

FY15E

FY14E

FY13

FY12

FY11

FY10

FY09

FY08

FY07

FY06

FY05

FY04

FY03

FY02

FY01

0

Source: Maybank KE estimates

SATS to benefit from growth in tourism traffic to Japan

Beneficiary of long-term tourism growth in Japan. As part of the restructuring of Japan Airlines, SATS acquired a 50.7% stake in Tokyo Flight Kitchen (TFK Corp). This has allowed the company to extend its geographical reach and gain access to Japan’s inflight catering market., The Japanese government is targeting to achieve 30m visitor arrivals by 2030 (implied CAGR of 7.4%) as part of its efforts to restructure the domestic economy. This would, in turn, drive traffic growth for the aviation industry. While the sharp depreciation of the JPY would impact the SGD-translated contributions to SATS, we believe that the net effect for the company is still positive.

15 10

8.6 8.4 8.3 8.4 6.8 6.7 7.3 6.2 5.0 4.8 4.8 5.2 5.2 6.1

5

Source: CEIC, Maybank KE

22 August 2013

CY30E

YTD

CY12

CY11

CY10

CY09

CY08

CY07

CY06

CY05

CY04

CY03

CY02

CY01

CY00

0

31.2 25.8

33.5

28.0

18.0

2.5

FY16E

20

TFK EBITDA (SGD'mn)

FY15E

25

40 35 30 25 20 15 10 5 0

FY14E

30

30.0

FY13

Japan Visitor Arrivals ('mn)

FY12

35

Figure 36: TFK Corp – volume growth to drive higher profits

FY11

Figure 35: Japan – target visitor arrivals implies 7.4% CAGR till 2030

Source: Maybank KE estimates

Page 16 of 30

SATS PROFIT AND LOSS (SGD m)

BALANCE SHEET (SGD m)

FYE Mar

2012

2013

2014F

2015F

2016F

FYE Mar

2012

2013

2014F

2015F

2016F

Sales

1,685

1,819

1,876

2,041

2,130

266 (1,516) 169 (1) 1 (3) 13 41 222 (37) (4) 181 178 0.16

285 (1,627) 192 (2) 1 (3) (19) 53 225 (40) 0 185 202 0.18

301 (1,664) 212 (2) 1 (2) (2) 46 254 (43) (4) 207 209 0.19

343 (1,784) 257 (2) 1 (3) 0 49 304 (52) (6) 246 246 0.22

362 (1,852) 278 (2) 1 (3) 0 50 326 (57) (7) 262 262 0.24

Total assets Current assets Cash & ST investment Inventories Accounts receivable Others Other assets LT investments Net fixed assets Others Total liabilities Current liabilities Accounts payable ST borrowings Others Long-term liabilities Long-term debts Others Shareholder's equity Minority interests

2,026 822 441 52 308 402 1,203 20 573 611 496 298 224 23 51 198 109 90 1,430 100

2,115 904 491 56 336 329 1,211 20 556 636 513 315 242 23 51 198 109 90 1,498 104

2,202 979 550 58 350 264 1,222 20 542 661 523 325 252 23 51 198 109 90 1,571 108

2,285 1,047 605 60 361 213 1,238 20 533 686 531 333 259 23 51 198 109 90 1,643 111

2,368 1,110 656 62 371 169 1,258 20 527 712 538 340 267 23 51 198 109 90 1,714 116

CASH FLOW (SGD m) FYE Mar

2012

2013

2014F

2015F

2016F

KEY RATIOS FYE Mar

2012

2013

2014F

2015F

2016F

Operating cash flow Operating profit Depreciation & amortisation Change in working capital Others Investment cash flow Net capex Change in LT investment Other investment CF Cash flow after invt. Financing cash flow Change in share capital Net change in debt Dividends to shareholders Change in other LT liab. Net cash flow

170 169 97 (68) (28) 225 (64) 263 25 395 (218) 1 (28) (188) (4) 177

248 192 93 (11) (26) (17) (37) (6) 26 232 (289) 10 (5) (289) (5) (57)

239 212 89 (19) (43) (23) (70) 23 24 216 (181) 0 0 (178) (2) 36

277 257 86 (14) (52) (45) (70) 0 25 233 (183) 0 0 (178) (4) 50

299 278 84 (7) (57) (44) (70) 0 26 255 (196) 0 0 (189) (7) 58

24.1% 0.0% 8.2% 0.9% -1.5%

7.9% 13.8% 7.1% 2.1% 13.8%

3.1% 10.1% 5.6% 12.0% 3.2%

8.8% 21.4% 14.1% 18.7% 17.7%

4.4% 8.3% 5.5% 6.6% 6.6%

10.0% 15.8% 11.0% 8.3% 11.9%

10.6% 15.7% 10.2% 9.0% 12.7%

11.3% 16.0% 11.3% 10.5% 14.6%

12.6% 16.8% 12.3% 12.2% 16.8%

13.1% 17.0% 12.6% 12.5% 17.1%

9.8% -19.4% 67.6 5.8 68.2 5.8 3.1 2.9 314

8.8% -18.3% 74.0 7.6 95.5 9.8 2.5 2.3 274

8.6% -20.2% 89.5 8.4 >100 9.5 2.8 2.6 310

8.2% -22.5% 97.8 10.1 >100 11.0 2.9 2.7 360

7.8% -24.9% 84.7 10.7 90.9 11.5 3.0 2.8 418

0.16 0.16 1.36 1.52 0.24 0.26

0.17 (0.05) 1.26 1.63 0.26 0.15

0.19 0.03 1.28 1.68 0.27 0.16

0.22 0.05 1.35 1.83 0.31 0.17

0.24 0.05 1.41 1.91 0.33 0.18

EBITDA Operating expenses Operating profit Net interest Interest income Interest expense Other items Associates & JVs Pretax profit Income taxes Minority interests Net profit Recurring Net Profit EPS (SGD)

       

Growth (% YoY) Sales Operating profit EBITDA Net profit EPS Profitability (%) Operating margin EBITDA margin Net margin ROA ROE Stability Gross debt/equity (%) Net debt/equity (%) Int. coverage (X) Int. & ST debt coverage (X) Cash flow int. coverage (X) Cash flow int. & ST debt (X) Current ratio (X) Quick ratio (X) Net cash/(debt) (SGD m) Per share data (SGD) EPS CFPS BVPS SPS EBITDA/share DPS

Source: Company, Maybank KE

22 August 2013

Page 17 of 30

Co. Reg No: 198700034E MICA (P) : 099/03/2012

Singapore Sector Update

22 August 2013

SIA Engineering

Buy (unchanged)

Hidden Value In JVs Share price: Target price:

SGD4.73 SGD6.19 (unchanged)

Maintain BUY and TP of SGD6.19. We value SIAEC using the SOTP methodology as we believe this would better reflect the underlying value of its associates and JVs. We thus arrive at a TP of SGD6.19. Almost half of our valuation of the stock resides in the group’s key JVs with Rolls-Royce (SAESL + IECO), reflecting the positive outlook and strong economic moats of their business. While P/E multiples appear rich relative to its historical trading range, we argue that there is hidden value within its business units that are not fully reflected via a P/E valuation method. Special dividends and separate listings of its units are potential stock catalysts, in our view.

Derrick HENG [email protected] (65) 6432 1446 Stock Information Description: SIA Engineering Company is a leading Maintenance, Repair & Overhaul (MRO) service provider and is majority owned by Singapore Airlines (SIA). The company is a dominant Line Maintenance player at Singapore’s Changi Airport with a market share of c.80%. SIAEC also holds significant stakes in joint ventures that contributes to more than half of the group’s profits. Ticker: Shares Issued (m): Market Cap (USD m): 3-mth Avg Daily Turnover (USD m): ST Index: Free float (%):

SIE SP 1,112.6 4,116.6 1.5 3,109.0 21.4 % 78.6

Major Shareholders: Singapore Airlines

Key Indicators ROE – annualised (%) Net cash (SGD m): NTA/shr (SGD): Interest cover (x):

20.8 619 1.25 n.m.

Historical Chart 5.50

SIE SP Equity

5.00

Not just exposed to SIA. While SIAEC still derives more than 60% of sales from SIA, non-SIA customers drive more than 70% of sales at its associates and JVs. With more than half of earnings from its network of associates & JVs, we argue that SIAEC is now more exposed to nonSIA customers. Benefiting from growing fleet in SIA group. Over the years, SIA has sought ways to restructure its business model, including the rollout of low cost carriers (LCC) Scoot and Tiger Airways, aircraft reconfiguration and new orders. Due to the tight resources for LCCs, maintenance work is usually outsourced. In the case of Tiger Airways and Scoot, MRO work is outsourced to SIAEC, which benefits from the fleet growth for these two units. We expect SIAEC to reap more benefits from the growing fleet in the SIA group. SIA Engineering – Summary Earnings Table

4.50

.

4.00

3.50 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13

Performance: 52-week High/Low

Absolute (%) Relative (%)

Rolls-Royce-related ventures as a key driver of profits. SIAEC holds strategic stakes in three key Rolls-Royce-related ventures (SAESL: 50%, IECO: 50%, HAESL: 10%) that would benefit from the influx of Trent engines into the market. Our analysis of the fleet development at the key customers of SAESL, a key profit contributor to the group, points to an increasingly positive outlook. In addition to an existing fleet of 238 Trent-powered aircraft, we estimate that non-SIA clients have a combined order book of 277 aircraft that would be using Trent engines in the future.

SGD5.32/SGD4.08

1-mth

3-mth

6-mth

1-yr

YTD

-7.8 -4.7

-7.1 2.9

-2.5 3.1

12.9 11.3

7.7 9.8

FYE Mar (SGD m) Revenue EBITDA Recurring Net Profit Recurring Basic EPS (cents) EPS growth (%) DPS (cents)

2012 1,170 169 269 24.4 4.1% 21.0

2013 1,147 163 270 24.3 0.3% 22.0

2014F 1,181 169 276 24.8 2.2% 23.0

2015F 1,209 179 299 26.8 8.3% 24.0

2016F 1,230 182 312 28.0 4.2% 25.0

PER EV/EBITDA (x) Div Yield (%) P/BV(x)

19.5 27.6 4.4% 4.2

19.4 28.6 4.7% 4.0

19.0 27.6 4.9% 3.9

17.6 26.0 5.1% 3.8

16.9 25.6 5.3% 3.7

495 21.1% 16.9%

517 21.1% 17.0%

510 20.9% 16.9% 285

494 22.1% 17.8% 304

480 22.5% 18.1% 326

Net Cash (SGD’m) ROE (%) ROA (%) Consensus Net Profit (SGD m) Source: Maybank KE

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

SIA Engineering

SIAEC holds strategic stakes in 3 key Rolls-Royce-related ventures that would benefit from the influx of Trent engines into the market

Rolls-Royce-related ventures as a key driver of profits. SIAEC holds strategic stakes in three key Rolls-Royce-related ventures (SAESL: 50%, IECO: 50%, HAESL: 10%) that would benefit from the influx of Trent engines into the market. Our analysis of the fleet development at the key customers of SAESL, a key profit contributor to the group, points to an increasingly positive outlook. In addition to an existing fleet of 238 Trent-powered aircraft, we estimate that non-SIA clients have a combined order book of 277 aircraft that would be using Trent engines in the future. In the near term, we expect SAESL to benefit from the fleet development at AirAsia X, MAS, Thai Airways, Garuda, Air NZ and Virgin Atlantic. Aircraft orders at Qatar, Emirates, Etihad and Yemenia would provide longer-term upside.

Figure 37: Order book analysis of SAESL’s key customers S/N Custom er Fleet Order Order / Fleet Rem arks 1 Air Asia 11 32 291% +17 A330s (Trent 700s) by end 2015 (rest of 2013: +5, 2014: +7, 2015: +5). 2 Air NZ 8 10 125% Taking delivery of B787s (Trent 1000) in 2014/15. 3 Air Transat 12 0 0% 4 Emirates 48 70 146% Ordered 70 A350s, pow ered only by the Trent XWB engine. 5 Etihad 31 12 39% Ordered 12 A350s, pow ered only by the Trent XWB engine. 6 Garuda 15 11 73% Receiving more A330s (Trent 700s) (2013: +3), part of fleet rejuvenation. 7 MAS 21 0 0% Took delivery of 6 A380s (Trent 900) over the past year. 8 MEA 4 0 0% 9 Qantas 12 8 67% 10 Qatar 7 80 1143% Ordered 80 A350s, pow ered only by the Trent XWB engine. 11 SIA group 86 139 162% 12 Thai 45 22 49% Currently taking delivery of its fleet of A380s (Trent 900) (2013: +3). 13 Virgin Atlantic 22 22 100% Taking delivery of B787s (Trent 1000) in 2014/15. 14 Yemenia 2 10 500% Ordered 10 A350s, pow ered only by the Trent XWB engine. Total 324 416 128% Total ex-SIA 238 277 116% Sort by Absolute Fleet Custom er Fleet Spread SIA group 86 27% Emirates 48 15% Thai 45 14% Etihad 31 10% Virgin Atlantic 22 7% MAS 21 6% Garuda 15 5% Qantas 12 4% Air Transat 12 4% Air Asia 11 3% Air NZ 8 2% Qatar 7 2% MEA 4 1% Yemenia 2 1% Total 324 Total ex-SIA 238 73%

Sort by Absolute Order Custom er Order Book Spread SIA group 139 33% Qatar 80 19% Emirates 70 17% Air Asia 32 8% Virgin Atlantic 22 5% Thai 22 5% Etihad 12 3% Garuda 11 3% Yemenia 10 2% Air NZ 10 2% Qantas 8 2% MEA 0 0% MAS 0 0% Air Transat 0 0% Total 416 Total ex-SIA 277 67%

Sort by Order to Fleet Ratio Custom er Order / Fleet Qatar 1143% Yemenia 500% Air Asia 291% SIA group 162% Emirates 146% Air NZ 125% Virgin Atlantic 100% Garuda 73% Qantas 67% Thai 49% Etihad 39% MEA 0% MAS 0% Air Transat 0% Total 128.4% Total ex-SIA 116.4%

Source: Maybank KE estimates

22 August 2013

Page 19 of 30

SIA Engineering

With non-SIA customers driving >70% of sales at its associates & JVs, we argue that SIAEC is now less exposed to SIA

Not just exposed to SIA. We offer a snapshot of SIAEC’s exposure and sources of growth in the picture below. While SIAEC still derives more than 60% of sales from SIA, non-SIA customers drive more than 70% of sales at its associates and JVs. With more than half of earnings from its network of associates & JVs, we argue that SIAEC is now more exposed to non-SIA customers.

Figure 38: SIAEC offers more than an exposure to SIA; joint ventures are a key source of growth (SGD'm n) SIAEC and subsidiaries Associates & JVs SIAEC and subsidiaries SIA Non-SIA SIA Non-SIA SIA Non-SIA 716 471 987 2,700 60% 40% Turnover 130 176 42% Earnings b4 Tax* *Associates & JVs Earnings b4 Tax includes dividend contribution from HAESL (classified as Long Term Investments)

(%)

FY13

SIAEC+ Subsidiaries: Sales (SGD'm n) 1,400

Non-SIA

Associates & JVs: Sales (SGD'm n)

SIA

75%

% SIA

1,200 800

359

290

552

467

370

471

600 400

4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

70%

1,000

65% 60%

735

715

675

661

654

716

200

55% 50%

0 FY08

FY09

FY10

Associates & JVs SIA Non-SIA 27% 73% 58%

FY11

FY12

FY13

Non-SIA

SIA

% SIA

35% 30% 25%

1,976

2,030

2,670 2,053

2,649

282 FY11

628

815

456

FY08

FY09

FY10

133

141

143

2,700

20% 15%

763

987

FY12

FY13

10% 5%

Group PBT Com position (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

SIAEC+Subsidiaries

116 114

114

117

146

117

139

133

130

Associates

106 68 5 8 FY05

86 12

15

107 14

20

33

51

FY06

FY07

FY08

109

74

11

15

64 FY09

63 17

60 15

65 17

66 18

75

96

105

115

125

FY12

FY13

70 12

82

56

75

FY10

FY11

HAESL

14 JVs

FY14E FY15E FY16E

Source: Maybank KE estimates

22 August 2013

Page 20 of 30

SIA Engineering

SIAEC benefits from the growing fleet in the SIA group

Benefiting from growing fleet in SIA group. Over the years, SIA has sought ways to restructure its business model, including the introduction of low cost carriers (LCC) Scoot and Tiger Airways, aircraft reconfiguration and new orders. Tiger Airways was launched in the early 2000s as a way to tap the growing demand for budget travel. It follows the traditional LCC model to maximise aircraft utilisation with high frequency short-haul travel. As the business environment evolved, SIA rolled out another LCC unit, Scoot, in 2012. Compared with the short-haul nature of Tiger Airways’ network, Scoot focuses on providing budget travel on medium-to-long haul routes. Due to the tight resources for LCCs, maintenance work is usually outsourced. In the case of Tiger Airways and Scoot, MRO work is outsourced to SIAEC, which benefits from the fleet growth for these two units. We expect SIAEC to reap more benefits from the growing fleet in the SIA group. Figure 39: Aircraft on order at the SIA group 120

101

100 70

80

54

60 30

40 20

14

8

5

22

20 2

4

0

Source: SIA (as of FY13 end)

SOTP valuation reflects our bullish view on the JVs

SOTP valuation reflects our bullish view on JVs. We value SIAEC using the SOTP methodology as we believe this would better reflect the underlying value of its associates and JVs. We thus arrive at a TP of SGD6.19. Almost half of our valuation of the stock resides in the group’s key JVs with Rolls-Royce (SAESL + IECO), reflecting the positive outlook and strong economic moats of their business. While P/E multiples appear rich relative to its historical trading range, we argue that there is hidden value within its business units that are not fully reflected via a P/E valuation method. Figure 40: SOTP valuation reflects our bullish view on the JVs SOTP valuation of SIAEC

Value Per shr Percent Rem arks (S$'m n) (S$) (%) Core Company Business 1,845 1.66 27% DCF (WACC: 6.6%, terminal g: 2.0%) Joint Ventures 3,341 3.01 49% DCF (WACC: 6.6%, terminal g: 3.0%) Associates 808 0.73 12% 15X FY14E P/E HAESL 400 0.36 6% 4% FY14E dividend yield Enterprise Value 6,394 5.76 93% Add: FY14E Net Cash/(Debt) 510 0.46 7% Less: MI (28) (0.02) 0% Intrinsic Value (S$ 'm n) 6,876 6.19 100% Divided by no. of shares ('mn) 1,110 Fair Value per share (S$) 6.19 Current Market Price (S$) 4.73 F12M DPS (S$) 0.23 Price upside (%) 30.9% Dividend yield (%) 4.9% Total return (%) 35.8%

Source: Maybank KE estimates

22 August 2013

Page 21 of 30

SIA Engineering PROFIT AND LOSS (SGD m)

BALANCE SHEET (SGD m)

FYE Mar

2012

2013

2014F

2015F

2016F

FYE Mar

2012

2013

2014F

2015F

2016F

Revenue EBITDA Depreciation & Amortisation Operating profit Interest (Exp)/Inc Associates Exceptional items Other items Pretax profit Income taxes Minority interests Reported Net Profit Recurring Net Profit

1,170 169 (40) 130 15 157 0 2 303 (31) (3) 269 269

1,147 163 (35) 128 18 159 0 1 306 (32) (4) 270 270

1,181 169 (39) 130 18 165 0 0 313 (33) (4) 276 276

1,209 179 (41) 139 19 180 0 0 338 (35) (4) 299 299

1,230 182 (42) 140 20 192 0 0 352 (36) (4) 312 312

Revenue Growth (%) EBITDAR Growth (%) EBIT Growth (%) Net Profit Growth (%) Recurring Net Profit Growth (%) Tax Rate (%)

5.7% -3.4% -4.5% 4.1% 4.1% 10.3%

-2.0% -3.6% -1.2% 0.3% 0.3% 10.4%

3.0% 3.8% 1.7% 2.2% 2.2% 10.5%

2.4% 6.0% 6.6% 8.3% 8.3% 10.4%

1.7% 1.7% 1.1% 4.2% 4.2% 10.3%

Total assets Current assets Cash & ST investment Inventories Accounts receivable Others Other assets LT investments Net fixed assets Others Total liabilities Current liabilities Accounts payable ST borrowings Others Long-term liabilities Long-term debts Others Shareholder's equity Minority interests

1,599 820 498 118 205 (41) 779 15 309 456 320 293 264 2 27 26 0 26 1,254 25

1,633 837 523 108 206 (41) 796 15 305 476 304 278 249 6 24 25 0 25 1,302 27

1,681 840 515 115 210 (0) 840 15 319 506 318 293 263 6 24 25 0 25 1,335 28

1,719 834 499 119 215 51 885 15 331 539 323 298 268 6 24 25 0 25 1,368 28

1,759 828 486 123 219 102 931 15 342 574 328 302 273 6 24 25 0 25 1,403 28

CASH FLOW (SGD m) FYE Mar

2012

2013

2014F

2015F

2016F

KEY RATIOS FYE Mar

2012

2013

2014F

2015F

2016F

Operating cash flow Operating profit Depreciation & amortisation Change in working capital Others Investment cash flow Net capex Change in LT investment Other investment CF Cash flow after invt. Financing cash flow Change in share capital Net change in debt Dividends to shareholders Change in other LT liab. Net cash flow

135 130 40 (12) (22) 99 (42) (3) 144 234 (317) 14 1 (329) (3) (83)

134 128 35 (4) (25) 110 (45) 0 156 244 (219) 23 3 (242) (2) 25

140 130 39 3 (33) 100 (55) 0 155 239 (247) 0 0 (243) (4) (8)

139 139 41 (5) (35) 114 (55) 0 169 253 (269) 0 0 (265) (4) (16)

143 140 42 (3) (36) 124 (55) 0 179 267 (280) 0 0 (277) (4) (13)

5.7% -4.5% -3.4% 4.1% 4.1%

-2.0% -1.2% -3.6% 0.3% 0.3%

3.0% 1.7% 3.8% 2.2% 2.2%

2.4% 6.6% 6.0% 8.3% 8.3%

1.7% 1.1% 1.7% 4.2% 4.2%

14.5% 11.1% 14.5% 23.3% 16.9% 21.1%

14.2% 11.2% 14.2% 23.9% 17.0% 21.1%

14.3% 11.0% 14.3% 23.7% 16.9% 20.9%

14.8% 11.5% 14.8% 25.1% 17.8% 22.1%

14.8% 11.4% 14.8% 25.7% 18.1% 22.5%

0.2% -38.7% >100 51.7 >100 53.9 2.8 2.4 495

0.4% -38.9% >100 22.3 >100 23.3 3.0 2.6 517

0.4% -37.4% >100 22.5 >100 24.1 2.9 2.5 510

0.4% -35.4% >100 23.9 >100 24.0 2.8 2.4 494

0.4% -33.6% >100 24.1 >100 24.6 2.7 2.3 480

0.25 (0.08) 1.14 1.07 0.15 0.21

0.25 0.02 1.18 1.04 0.15 0.22

0.25 (0.01) 1.21 1.07 0.15 0.23

0.27 (0.01) 1.24 1.09 0.16 0.24

0.28 (0.01) 1.27 1.11 0.16 0.25

Growth (% YoY) Sales Operating profit EBITDA Net profit EPS Profitability (%) EBITDAR margin Operating margin EBITDA margin Net margin ROA ROE Stability Gross debt/equity (%) Net debt/equity (%) Int. coverage (X) Int. & ST debt coverage (X) Cash flow int. coverage (X) Cash flow int. & ST debt (X) Current ratio (X) Quick ratio (X) Net cash/(debt) (SGD m) Per share data (SGD) EPS CFPS BVPS SPS EBITDA/share DPS

Source: Company, Maybank KE

22 August 2013

Page 22 of 30

Co. Reg No: 198700034E MICA (P) : 099/03/2012

Singapore Sector Update

22 August 2013

Buy (unchanged) Share price: Target price:

ST Engineering Robust Outlook To Support Lofty Valuations

SGD4.01 SGD4.80 (unchanged)

Maintain BUY with TP of SGD4.80. We value STE using 23x FY13/14F PER and arrive at a TP of SGD4.80. The near historical peak PER peg reflects our positive view on the company that is underpinned by the strong order book of SGD12.7b (2x annual sales). STE trades at an undemanding market capitalisation-to-order ratio of 1.0x, which is below its market cycle average of 1.2x. Increase in dividend payout ratio and major contract wins are potential stock catalysts, in our view.

Derrick HENG [email protected] (65) 6432 1446

Stock Information Description: Singapore Technologies Engineering (STE) is an industrial conglomerate with four key business segments: Aerospace, Marine, Electronics and Land Systems. The company is also a key defence contractor in Singapore. Ticker: Shares Issued (m): Market Cap (USD m): 3-mth Avg Daily Turnover (USD m): ST Index: Free float (%):

STE SP 3,105.0 9,739.6 7.9 3,109.0 49.7 % 50.24 5.99 5.45

Major Shareholders: Temasek Holdings Capital Group Aberdeen

Key Indicators ROE – annualised (%) Net cash (SGD m): NTA/shr (SGD): Interest cover (x):

31.3 820 0.48 10.0

Historical Chart 5.00

.

3.50

3.00 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13

Absolute (%) Relative (%)

Aerospace to enter next phase of growth. The aerospace division is one of STE’s key profit drivers (32% of sales; 42% of PBT). ST Aerospace recently acquired a 35% stake in EADS EFW, a Centre of Excellence for freighter conversions, for EUR110.5m (SGD186.6m). STE will leverage on its years of experience in passenger to freighter (PTF) conversions to develop a conversion package for two versions of converted freighters – A330-200P2F and A330-300P2F. As a gauge of the potential market size for this new product, Airbus estimates that 847 mid-sized aircraft would be converted into freighters over the next 20 years. FYE Dec (SGD m) Revenue EBITDA Recurring Net Profit Recurring Basic EPS (cents) EPS growth (%) DPS (cents)

4.50

Performance: 52-week High/Low

Major Singapore Navy project to drive shipbuilding sales. STE was recently awarded a contract to build eight new patrol vessels for the Republic of Singapore Navy (RSN). While the contract value was not disclosed, we believe that this is the largest naval shipbuilding contract for the RSN since the frigate programme of 2002/2008 and expect execution of this key contract to drive STE’s shipbuilding sales over the next few years.

ST Engineering – Summary Earnings Table

STE SP Equity

4.00

Largest third-party MRO to benefit from secular outsourcing trend by airlines. In order to focus on their core business, airlines have been outsourcing maintenance work to other MRO service providers. According to ICF SH&E, this trend is expected to continue in the years ahead. As one of the largest third-party MRO service providers in the world, we expect ST Aerospace to be a key beneficiary of this secular outsourcing trend by airlines.

SGD4.46/SGD3.25

1-mth

3-mth

6-mth

1-yr

YTD

-5.0 -1.8

-7.4 2.6

-3.8 1.8

22.4 20.7

7.3 9.3

PER EV/EBITDA (x) Div Yield (%) P/BV(x) Net Cash (SGD’m) ROE (%) ROA (%) Consensus Net Profit (SGD m) Source: Maybank KE

2011 5,991 743 528 17.3 6.6% 15.5

2012 6,380 795 576 18.8 8.6% 16.8

2013F 6,964 861 626 20.3 8.3% 18.3

2014F 7,230 918 659 21.4 5.3% 19.3

2015F 7,657 987 706 22.9 7.1% 20.6

23.6 16.5 3.9% 6.2 382 31.1% 7.4%

21.6 15.4 4.2% 5.9 437 31.5% 7.6%

19.9 14.2 4.6% 5.6 346 32.1% 7.8% 615

18.9 13.3 4.8% 5.4 268 32.1% 8.0% 650

17.6 12.4 5.1% 5.1 221 32.7% 8.4% 691

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

ST Engineering

Largest third-party MRO to benefit from secular outsourcing trend by airlines. In order to focus on their core business, airlines have been outsourcing maintenance work to other MRO service providers. According to ICF SH&E, this trend is expected to continue in the years ahead. As one of the largest third-party MRO service providers in the world, we expect ST Aerospace to be a key beneficiary of this secular outsourcing trend by airlines.

Beneficiary of the secular outsourcing trend by airlines

Figure 41: MRO outsourcing trend to continue 100% 80%

85%

82%81%

78%76%

30%

89% 74%

23% 18%

20% 42%

40%

2022E vs 2010

25%

61%

56%

60%

Figure 42: Line and heavy airframe maintenance outsourcing to increase the most by 2022E

13%

15%

29%

10%

19%

20%

7%

5%

Engines

Components

Line

0%

2022E

2016E

2010

0%

Heavy Airframe

Source: ICF SH&E, Maybank KE

Robust order book provides long-term visibility

Order book of SGD12.7b offers long-term revenue visibility. STE’s order book is currently at SGD12.7b (2x annual sales). We estimate that approximately 60% of the existing order book is made up of announced contracts, with the aerospace and marine divisions offering the best order visibility. As a heuristic gauge of the stock’s valuation, STE trades at an undemanding market capitalisation-to-order ratio of 1.0x, below its market cycle average of 1.2x.

Figure 43: Order book of SGD12.7b (2x annual sales)

Figure 44: Aerospace and marine form bulk of announced orders 2.6

12

2.4

10

2.2

8

2.0

6

1.8

4

1.6

2

1.4

0

1.2

Aerospace, 3.6 , 27%

Unannounc ed, 5.3 , 41%

Marine, 2.4 , 18%

1QFY04 3QFY04 1QFY05 3QFY05 1QFY06 3QFY06 1QFY07 3QFY07 1QFY08 3QFY08 1QFY09 3QFY09 1QFY10 3QFY10 1QFY11 3QFY11 1QFY12 3QFY12 1QFY13

14

Others, 0.1 , 1%

Source: Maybank KE estimates

Land Systems, 0.4 , 3%

Electronics, 1.3 , 10%

Source: Maybank KE estimates

Figure 45: Market capitalisation-to-order at undemanding ratio of 1.0x 1.8

Market Cap. To Order Book (X)

1.7

1.6 1.4 1.2

1.0

1.0 0.8

Dec-13

Dec-12

Dec-11

Dec-10

Dec-08

Dec-07

Dec-06

Dec-05

Dec-04

Dec-03

0.4

Dec-09

0.6

0.6

Source: Maybank KE estimates 22 August 2013

Page 24 of 30

ST Engineering

Naval shipbuilding project to drive segmental sales

Major Singapore Navy project to drive Singapore’s shipbuilding sales. STE was recently awarded a contract to build eight new patrol vessels for the RSN. While the contract value was not disclosed, we believe that this is the largest naval shipbuilding contract for the RSN since the frigate programme of 2002/2008. STE derives the majority of its Asian shipbuilding sales from Singapore and we expect execution of this key contract to drive segmental performance over the next few years. However, we are unable to provide firm estimates at this point due to the lack of disclosures. Figure 46: Major project for RSN drives shipbuilding sales in Asia 450 400 350 300 250 200 150 100 50 0 (50)

02-08: Frigate program for RSN

Asia Shipbuilding Sales (SGD'mn) Writeback on ROPAX contract

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

Source: Maybank KE estimates

Strategic stake in EADS EFW increases exposure to the PTF market

Aerospace to enter next phase of growth. The aerospace division is one of STE’s key profit drivers (32% of sales; 42% of PBT). ST Aerospace recently acquired a 35% stake in EADS EFW, a Centre of Excellence for freighter conversions, for EUR110.5m (SGD186.6m). STE will leverage on its years of experience in passenger to freighter (PTF) conversions to develop a conversion package for two versions of converted freighters – A330-200P2F and A330-300P2F. As a gauge of the potential market size for this new product, Airbus estimates that 847 mid-sized aircraft would be converted into freighters over the next 20 years. Figure 47: Mid-sized aircraft forms bulk of conversion over next 20 years Large, 423 , 24% Small, 523 , 29%

Mid-sized, 847 , 47%

Source: Airbus GMF (2012), Maybank KE

22 August 2013

Page 25 of 30

ST Engineering PROFIT AND LOSS (SGD m)

BALANCE SHEET (SGD m)

FYE Dec

2011

2012

2013F

2014F

2015F

FYE Dec

2011

2012

2013F

2014F

2015F

Sales

5,991

6,380

6,964

7,230

7,657

743 (5,383) 608 (19) 45 (64) 32 35 655 (115) (13) 528 528

795 (5,722) 658 (19) 48 (67) 43 41 723 (138) (8) 576 576

861 (6,248) 716 (17) 54 (72) 40 46 785 (149) (10) 626 626

918 (6,470) 760 (22) 56 (78) 40 49 827 (158) (10) 659 659

987 (6,836) 821 (27) 58 (85) 40 51 885 (170) (10) 706 706

EPS (SGD)

0.17

0.19

0.20

0.21

0.23

Total assets Current assets Cash & ST investment Inventories Accounts receivable Others Other assets LT investments Net fixed assets Others Total liabilities Current liabilities Accounts payable ST borrowings Others Long-term liabilities Long-term debts Others Shareholder's equity Minority interests

8,266 5,313 1,647 1,789 1,851 27 2,953 355 1,371 1,226 6,144 4,015 1,839 211 1,965 2,129 1,090 1,039 2,003 119

8,426 5,366 1,568 1,850 1,921 27 3,059 355 1,476 1,228 6,207 4,078 1,902 211 1,965 2,129 1,090 1,039 2,099 120

8,647 5,539 1,522 1,955 2,035 27 3,109 355 1,523 1,230 6,315 4,186 2,010 211 1,965 2,129 1,090 1,039 2,212 121

8,872 5,718 1,477 2,065 2,149 27 3,154 355 1,566 1,233 6,427 4,299 2,123 211 1,965 2,129 1,090 1,039 2,323 122

9,100 5,852 1,386 2,175 2,264 27 3,248 355 1,657 1,235 6,541 4,412 2,236 211 1,965 2,129 1,090 1,039 2,436 123

CASH FLOW (SGD m) FYE Dec

2011

2012

2013F

2014F

2015F

KEY RATIOS FYE Dec

2011

2012

2013F

2014F

2015F

Operating cash flow Operating profit Depreciation & amortisation Change in working capital Others Investment cash flow Net capex Change in LT investment Other investment CF Cash flow after invt. Financing cash flow Change in share capital Net change in debt Dividends to shareholders Change in other LT liab. Net cash flow

566 608 135 (182) 5 (377) (194) (27) (155) 189 (419) 35 48 (444) (57) (230)

1,018 658 137 241 (18) (150) (227) (25) 102 868 (509) 42 (7) (476) (68) 360

908 716 145 156 (109) (400) (305) (187) 91 507 (598) 0 0 (518) (81) (91)

732 760 158 (69) (118) (160) (255) 0 95 572 (651) 0 0 (564) (87) (79)

747 821 166 (111) (130) (106) (205) 0 99 640 (687) 0 0 (593) (94) (47)

0.1% 3.6% 3.3% 7.4% 6.6%

6.5% 8.3% 7.0% 9.2% 8.6%

9.2% 8.9% 8.3% 8.7% 8.3%

3.8% 6.1% 6.7% 5.3% 5.3%

5.9% 8.1% 7.5% 7.1% 7.1%

10.1% 12.4% 9.0% 7.4% 31.1%

10.3% 12.5% 9.2% 7.6% 31.5%

10.3% 12.4% 9.1% 7.8% 32.1%

10.5% 12.7% 9.3% 8.0% 32.1%

10.7% 12.9% 9.3% 8.4% 32.7%

73.9% -20.4% 9.4 2.2 8.8 2.1 1.4 1.0 382

64.6% -21.7% 9.8 2.4 15.2 3.7 1.4 0.9 437

61.3% -16.3% 10.0 2.5 12.7 3.2 1.3 0.9 346

58.6% -12.1% 9.7 2.6 9.4 2.5 1.3 0.9 268

55.8% -9.5% 9.7 2.8 8.8 2.5 1.3 0.9 221

0.17 (0.08) 0.58 1.96 0.24 0.16

0.19 0.12 0.62 2.07 0.26 0.17

0.20 (0.03) 0.65 2.26 0.28 0.18

0.21 (0.03) 0.68 2.35 0.30 0.19

0.23 (0.02) 0.72 2.49 0.32 0.21

EBITDA Operating expenses Operating profit Net interest Interest income Interest expense Other items Associates & JVs Pretax profit Income taxes Minority interests Net profit Recurring Net Profit

Growth (% YoY) Sales Operating profit EBITDA Net profit EPS Profitability (%) Operating margin EBITDA margin Net margin ROA ROE Stability Gross debt/equity (%) Net debt/equity (%) Int. coverage (X) Int. & ST debt coverage (X) Cash flow int. coverage (X) Cash flow int. & ST debt (X) Current ratio (X) Quick ratio (X) Net cash/(debt) (SGD m) Per share data (SGD) EPS CFPS BVPS SPS EBITDA/share DPS

Source: Company, Maybank KE

22 August 2013

Page 26 of 30

Singapore Transportation

RESEARCH OFFICES REGIONAL WONG Chew Hann, CA Regional Head, Institutional Research (603) 2297 8686 [email protected] Alexander GARTHOFF Institutional Product Manager (852) 2268 0638 [email protected] ONG Seng Yeow Regional Head, Retail Research (65) 6432 1453 [email protected]

ECONOMICS Suhaimi ILIAS Chief Economist  Singapore | Malaysia (603) 2297 8682 [email protected]

JUNIMAN Chief Economist, BII  Indonesia (62) 21 29228888 ext 29682 [email protected]

Luz LORENZO  Philippines (63) 2 849 8836 [email protected]

Josua PARDEDE Economist / Industry Analyst, BII  Indonesia (62) 21 29228888 ext 29695 [email protected]

Tim LEELAHAPHAN  Thailand (662) 658 1420 [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 - Regional LIAW Thong Jung (603) 2297 8688 [email protected]  Oil & Gas  Automotive  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 LEE Yen Ling (603) 2297 8691 [email protected]  Building Materials  Manufacturing  Technology LEE Cheng Hooi Head of Retail [email protected]  Technicals

HONG KONG / CHINA Alexander GARTHOFF Acting Head of Research (852) 2268 0638 [email protected] Alexander LATZER (852) 2268 0647 [email protected]  Metals & Mining - Regional Andy POON (852) 2268 0645 [email protected]  Telecom & equipment Ivan CHEUNG, CFA (852) 2268 0634 [email protected]  Industrial Jacqueline KO, CFA (852) 2268 0633 [email protected]  Consumer Terence LOK (852) 2268 0630 [email protected]  Industrial Jeremy TAN (852) 2268 0635 [email protected]  Gaming Karen KWAN (852) 2268 0640 [email protected]  HK & China Property Philip TSE (852) 2268 0643 [email protected]  HK & China Property Warren LAU (852) 2268 0644 [email protected]  Technology – Regional

INDIA Jigar SHAH Head of Research (91) 22 6623 2601 [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 Varun VARMA (91) 226623 2611 [email protected]  Banking

22 August 2013

SINGAPORE Gregory YAP Head of Research (65) 6432 1450 [email protected]  Technology & Manufacturing  Telcos Wilson LIEW (65) 6432 1454 [email protected]  Property & REITs James KOH (65) 6432 1431 [email protected]  Logistics  Resources  Consumer - Regional  Small & Mid Caps YEAK Chee Keong, CFA (65) 6432 1460 [email protected]  Offshore & Marine Alison FOK (65) 6432 1447 [email protected]  Services  S-chips ONG Kian Lin (65) 6432 1470 [email protected]  REITs / Property Wei Bin (65) 6432 1455 [email protected]  S-chips  Small & Mid Caps Derrick HENG (65) 6432 1446 [email protected]  Transport (Land, Shipping & Aviation) John CHEONG (65) 6432 1461 [email protected]  Small & Mid Caps

INDONESIA Lucky ARIESANDI, CFA (62) 21 2557 1127 [email protected]  Base metals  Mining  Oil & Gas  Wholesale Pandu ANUGRAH (62) 21 2557 1137 [email protected]  Automotive  Heavy equipment  Plantation  Toll road Rahmi MARINA (62) 21 2557 1128 [email protected]  Banking  Multifinance Adi N. WICAKSONO (62) 21 2557 1128 [email protected]  Generalist Anthony YUNUS (62) 21 2557 1139 [email protected]  Cement  Infrastructure  Property

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 Luz LORENZO (63) 2 849 8836 [email protected]  Conglomerates  Property  Ports/ Logistics  Gaming Katherine TAN (63) 2 849 8843 [email protected]  Banks  Construction Ramon ADVIENTO (63) 2 849 8845 [email protected]  Mining

THAILAND Sukit UDOMSIRIKUL Head of Research (66) 2658 6300 ext 5090 [email protected] Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 [email protected]  Consumer/ Big Caps Andrew STOTZ Strategist (66) 2658 6300 ext 5091 [email protected] Mayuree CHOWVIKRAN (66) 2658 6300 ext 1440 [email protected]  Strategy Padon Vannarat (66) 2658 6300 ext 1450 [email protected]  Strategy 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 Pongrat RATANATAVANANANDA (66) 2658 6300 ext 1398 [email protected]  Services/ Small Caps

VIETNAM Michael KOKALARI, CFA Head of Research (84) 838 38 66 47 [email protected]  Strategy Nguyen Thi Ngan Tuyen (84) 844 55 58 88 x 8081 [email protected]  Food and Beverage  Oil and Gas Hang Vu (84) 844 55 58 88 x 8087 [email protected]  Banking Trinh Thi Ngoc Diep (84) 844 55 58 88 x 8242 [email protected]  Technology  Utilities  Construction Dang Thi Kim Thoa (84) 844 55 58 88 x 8083 [email protected]  Consumer Nguyen Trung Hoa +84 844 55 58 88 x 8088 [email protected]  Steel  Sugar  Resources

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Singapore Transportation 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.

22 August 2013

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Singapore Transportation 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 22 August 2013, 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 22 August 2013, 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 Research uses the following rating system: BUY

Return is expected to be above 10% in the next 12 months (excluding dividends)

HOLD

Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends)

SELL

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.

Some common terms abbreviated in this report (where they appear): Adex = Advertising Expenditure BV = Book Value CAGR = Compounded Annual Growth Rate Capex = Capital Expenditure CY = Calendar Year DCF = Discounted Cashflow DPS = Dividend Per Share EBIT = Earnings Before Interest And Tax EBITDA = EBIT, Depreciation And Amortisation EPS = Earnings Per Share EV = Enterprise Value

22 August 2013

FCF = Free Cashflow FV = Fair Value FY = Financial Year FYE = Financial Year End MoM = Month-On-Month NAV = Net Asset Value NTA = Net Tangible Asset P = Price P.A. = Per Annum PAT = Profit After Tax PBT = Profit Before Tax

PE = Price Earnings PEG = PE Ratio To Growth PER = PE Ratio QoQ = Quarter-On-Quarter ROA = Return On Asset ROE = Return On Equity ROSF = Return On Shareholders’ Funds WACC = Weighted Average Cost Of Capital YoY = Year-On-Year YTD = Year-To-Date

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Singapore Transportation

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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

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Singapore

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

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Hong Kong

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

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Philippines

Maybank ATR Kim Eng Securities Inc. 17/F, Tower One & Exchange Plaza Ayala Triangle, Ayala Avenue Makati City, Philippines 1200

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Tel: (63) 2 849 8888 Fax: (63) 2 848 5738

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)

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South Asia Sales Trading

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

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Indonesia

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

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Vietnam

In association with

Maybank Kim Eng Securities JSC 1st Floor, 255 Tran Hung Dao St. District 1 Ho Chi Minh City, Vietnam Tel : (84) 844 555 888 Fax : (84) 838 38 66 39

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

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

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

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Maybank Kim Eng Securities (London) Ltd 6/F, 20 St. Dunstan’s Hill London EC3R 8HY, UK Tel: (44) 20 7621 9298 Dealers’ Tel: (44) 20 7626 2828 Fax: (44) 20 7283 6674

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

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London

India

Kim Eng Securities India Pvt Ltd 2nd Floor, The International 16, Maharishi Karve Road, Churchgate Station, Mumbai City - 400 020, India Tel: (91).22.6623.2600 Fax: (91).22.6623.2604

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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

Eddie LAU [email protected] Tel: (852) 2268 0800 US Toll Free: 1 866 598 2267

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

22 August 2013

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