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

Singapore Company Update

3 September 2013

China Minzhong

Under Review

Don’t Mess With Bapak* Share price:

SGD1.125

* “Bapak” is a salutation used in Indonesia to greet a man who is older and whom you know well

WEI Bin [email protected] (65) 6432 1455 Gregory YAP [email protected] (65) 6432 1450

Stock Information Description: A leading integrated vegetable processor in China, whose key products are fresh vegetable produce and more than 100 types of processed vegetables. Ticker: Shares Issued (m): Market Cap (USD m): 3-mth Avg Daily Turnover (USD m): ST Index: Free float (%):

MINZ SP 655.4 579.0 2.4 3,055.72 45.1 % 40.1 14.8

Major Shareholders: Indofood Templeton

Key Indicators ROE – annualised (%) Net gearing (%): NTA/shr (CNY): Interest cover (x):

18.1 2.8 5.27 28.6

Historical Chart 1.40

MINZ SP Equity

1.20

Accept the offer – easiest but other opportunities. So now what? In our view, there will be plenty of people saying accept the offer, run for the hills and count yourself lucky. After yesterday’s unprecedented rebound the stock is now at the last six months’ average and we believe most investors should be in the money or at the edge of it. Given the still considerable uncertainties, accepting the offer would be the easiest thing to do, but there are other dynamics to consider. Hence, from now on, we will strive to present all sides of the equation, recognising that there will be some investors (probably most) that will want to get out BUT there may still be some who would want to stay in the game. So why should we hang on? Well, for one thing, Glaucus likely gave Indofood a rare opportunity to launch a takeover at an artificially low price and frankly, Minzhong probably also asked Indofood for help. So if one is willing to wait it out, there could be more upside given Minzhong’s cheap valuation (0.7x NTA and 4x PE) now. Indofood is unlikely to give Minzhong a free lunch. In our view, it is likely to push Minzhong to cut capex, improve cashflow, increase transparency and corporate governance, and very likely have a fixed dividend policy (Indofood has a 40% payout policy) so that it can recoup its money as soon as possible. If all this plays out, Minzhong could still be worth SGD1.50, which was where consensus was clustered before Glaucus. China Minzhong – Summary Earnings Table FY2011 FY2012 FY2013F FY2014F FY2015F FYE June (CNY m) Revenue 1929.2 2568.8 3121.0 3641.9 4068.8 EBITDA 769.6 904.0 1094.0 1274.7 1409.1 Recurring Net Profit 566.7 681.6 760.1 894.2 1031.8 Recurring Basic EPS (fen) 86.5 103.7 115.4 135.5 156.2 EPS Growth (%) 29.1% 19.9% 11.3% 17.5% 15.3%

1.00

0.80

0.60

0.40 Sep-12

Indofood to take over Minzhong. We mentioned in an August note that Indofood may take over Minzhong if it is that confident in its investment and it appears that is the course they will take. China Minzhong’s rebuttal was announced on 1 Sep and it was robust in our view, but by itself would probably not have been enough to immediately ease shareholder concerns. Regardless, the rebuttal has since been superseded by more recent events, namely the offer that is now on the table for Minzhong at SGD1.12. Indofood first crossed over the 30% threshold yesterday morning (2 Sep) by buying 25.6m shares or 3.9%, taking them from 29.3% to 33.5%, and it will now launch a MGO for the rest. (Latest: Indofood in total bought 69.5m shares or 10.6%, taking them to 44.1%.) Uncertainties and approvals remain hence our rating is still under review. We outline some scenarios below.

Nov-12

Jan-13

Performance: 52-week High/Low

Absolute (%) Relative (%)

Mar-13

May-13

Jun-13

Aug-13

SGD1.27/SGD0.50

1-mth

3-mth

6-mth

1-yr

YTD

4.2 10.9

9.2 18.4

-6.3 0.3

56.2 54.7

40.6 45.7

PER (x) EV/EBITDA (x) P/BV (x)

5.93 4.58 1.16

4.94 4.32 1.15

4.46 3.19 0.82

3.78 2.49 0.59

3.28 1.91 0.50

Net gearing 5.7% ROE (%) 21.8% ROA (%) 16.7% Consensus Net Profit (CNY m) n.a Source: Company, Maybank KE estimates

15.3% 21.0% 14.9% n.a

4.4% 18.3% 13.8% 750.8

-0.5% 17.5% 14.3% 911.8

-6.4% 17.3% 14.4% 1052.0

SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS

China Minzhong

Balancing risks and rewards. Despite Indofood’s offer, the situation is certainly still fluid. Key among the risks would be failure on the part of Indofood to secure its own shareholders’ approval for the takeover. Other regulatory approvals will most likely be needed as well in both Singapore and Indonesia. Glaucus could step up the attacks even further. The offer document was notable for two things. One, Indofood did not present a rationale. That will only come out in two weeks, according to Minzhong’s management at a briefing yesterday. Two, and this was actually the most affirmative action by Minzhong, in our view not the rebuttal but the fact that Minzhong’s senior management (comprising CEO, CFO, COO and CTO) holding 6.6% of the shares has committed NOT to accept the offer. On the bright side, we think if Glaucus starts to make even more vicious attacks on Minzhong, investors will start to tune them out as they know Glaucus is almost certainly now nursing severe wounds. Figure 1: Minzhong management/shareholders who are NOT accepting Indofood’s offer Direct holdings

Deemed Holdings

Total Holdings

No. of shares

%

No. of shares

%

No. of shares

%

Lin Guo Rong

13,103,000

2.00

22,411,297

3.42

35,514,297

5.42

Siek Wei Ting

7,989,703

1.22

22,411,297

3.42

30,401,000

4.64

China Minzhong Holdings Ltd

22,411,297

3.42

22,411,297

3.42

Wang Dazhang

22,411,297

3.42

22,411,297

3.42

Huang Bing Hui

22,411,297

3.42

22,411,297

3.42

Total

43,504,000

6.64

Source: Company

We’ll keep digging. We will continue to monitor and analyse the situation. For investors with a low risk threshold, take the offer and cash out, and switch the money to Sino Grandness which is also a BUY in our books. See our 28 Aug report (http://research.maybankib.com/pdf/document/Sino_Grandness_concall_280813_4933.pdf) on why Sino Grandness is different from China Minzhong. But for investors with a higher risk appetite, we would like to remind them that Indofood’s offer price could look cheaper after all this is over but Minzhong also could be trading at higher than SGD1.12 by then. As analysts, we will stay in the game and recognise this not so cut and dry. There will be investors out there who would value an alternative view, such as situational funds who MAY also think Minzhong is undervalued and could jump in with a higher counter-offer to Indofood. For those funds, we say come and talk to us. We would like to offer another view. We are unlikely to have all the evidence that could get Minzhong off the hook right now, but we should be able to provide a robust discussion. We plan to publish more as we continue to dig into Glaucus’ accusations, Minzhong’s rebuttal, Glaucus’s rebuttal to Minzhong’s rebuttal and probably more rebuttals and rebuttals to the rebuttals to come.

3 September 2013

Page 2 of 8

China Minzhong

Web links to – Glaucus’ original SELL report on 26 Aug 2013 https://glaucusresearch.com/wpcontent/uploads/downloads/2013/08/GlaucusResearchChina_Minzhong_Food_Corp_Ltd-SGX_K2N-BBerg_MINZ_SPStrong_Sell_August_26_2013.pdf Minzhong’s rebuttal on 1 Sep 2013 http://infopub.sgx.com/FileOpen/CMZ_CompanyResponse_1Sep2013. ashx?App=Announcement&FileID=254770 Glaucus’ followup rebuttal to Minzhong’s rebuttal on 2 Sep 2013 https://glaucusresearch.com/wpcontent/uploads/downloads/2013/09/GlaucusResearchRebuttal_to_China_Minzhong-SGX_K2N-BBerg_MINZ_SPStrong_Sell_September_2_2013.pdf

3 September 2013

Page 3 of 8

China Minzhong

INCOME STATEMENT

CASH FLOW

FYE June (CNY m)

FY2011

FY2012 FY2013F FY2014F FY2015F

FYE June (CNY m)

FY2011

Sales Cost of goods sold Gross Profit Other income Operating expenses Operating Profit Net interest income Share of associates Net extraordinaries Pretax profit Income taxes Minority Interest Net Profit EBITDA EPS (fen)

1929.2 -1128.6 800.6 9.3 -150.1 659.7 -5.9 0.0 0.0 653.8 -87.1 0.0 566.7 769.6 86.5

2568.8 -1583.0 985.9 13.6 -237.5 762.0 -34.8 0.0 0.0 727.2 -46.6 1.0 681.6 904.0 103.7

Operating cash flow Profit before tax Dep & Amortisation Working capital change Others Investment cash flow Net Capex Net Investments Change in other assets Financing cash flow Change in share capital Net change in debt Change in other LT liab. Dividends paid Net cash flow Free cash flow

487.8 653.8 109.9 -202.3 -73.6 -1,852.1 -776.7 0.0 -1,075.4 356.3 46.1 310.5 -0.3 0.0 -1,008.1 -288.9

BALANCE SHEET FYE June (CNY m)

FY2011

FY2012 FY2013F FY2014F FY2015F

KEY RATIOS FYE June

FY2011

Total assets Current assets Cash Inventory Trade & other receivables Others Non-current assets PPE Operating lease prepayment Intangible Others Total liabilities Current liabilities Trade & other payables ST debt Others Long-term liabilities LT debt Convertible bonds Others Total equity Paid-in capital Reserve

3,394.5 1,244.9 162.4 53.9 930.5 98.1 2,149.6 1,113.9 515.9 519.8 0.0 486.8 469.1 129.5 322.1 17.5 17.7 5.0 0.0 12.8 2,907.7 1,072.3 1,835.4

4,587.5 1,659.2 66.2 104.1 1,383.8 105.1 2,928.3 1,832.0 448.2 642.2 6.0 1,000.2 971.6 343.0 612.6 16.0 28.6 3.6 0.0 25.0 3,587.3 1,072.3 2,515.1

3121.0 -2020.5 1100.5 16.0 -249.1 867.5 -30.0 0.0 0.0 837.5 -79.4 2.0 760.1 1094.0 115.4

5,507.5 2,011.8 297.6 87.4 1,564.7 62.1 3,495.7 2,340.4 469.0 686.4 0.0 791.3 762.8 246.8 500.0 16.0 28.6 3.6 0.0 25.0 4,716.2 1,520.6 3,195.5

3641.9 -2339.1 1302.8 10.0 -301.8 1011.0 -32.0 0.0 0.0 979.0 -87.8 3.0 894.2 1274.7 135.5

6,238.7 2,456.6 432.8 102.0 1,859.8 62.1 3,782.1 2,723.4 432.3 626.4 0.0 723.2 694.6 278.6 400.0 16.0 28.6 3.6 0.0 25.0 5,515.5 1,520.6 3,994.9

4068.8 -2595.8 1472.9 10.0 -330.2 1152.8 -36.0 0.0 0.0 1116.8 -89.0 4.0 1031.8 1409.1 156.2

7,185.8 3,110.0 813.6 113.9 2,120.4 62.1 4,075.7 3,087.2 400.2 588.4 0.0 748.9 720.3 304.3 400.0 16.0 28.6 3.6 0.0 25.0 6,436.9 1,520.6 4,916.3

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

FY2012 FY2013F FY2014F FY2015F 359.1 726.2 142.0 -550.6 41.5 -734.8 -640.5 1.0 -94.4 279.5 0.0 288.9 -9.4 0.0 -96.2 -281.4

754.3 835.5 226.6 -260.4 -47.4 -751.0 -600.0 2.0 -151.0 228.1 448.4 -112.6 -107.6 -75.6 231.4 154.3

934.0 976.0 263.7 -252.8 -52.8 -575.0 -500.0 3.0 -75.0 -223.8 0.0 -100.0 -123.8 -88.8 135.2 434.0

1,098.2 1,112.8 256.3 -221.9 -49.0 -575.0 -500.0 4.0 -75.0 -142.4 0.0 0.0 -142.4 -102.4 380.8 598.2

FY2012 FY2013F FY2014F FY2015F

35.6% 44.5% 49.8% 55.0% 29.1%

33.2% 15.5% 17.5% 20.3% 19.9%

21.5% 13.8% 21.0% 11.5% 11.3%

16.7% 16.5% 16.5% 17.6% 17.5%

11.7% 14.0% 10.5% 15.4% 15.3%

41.5% 34.2% 39.9% 29.4% 16.7% 21.8%

38.4% 29.7% 35.2% 26.5% 14.9% 21.0%

35.3% 27.8% 35.1% 24.4% 13.8% 18.3%

35.8% 27.8% 35.0% 24.6% 14.3% 17.5%

36.2% 28.3% 34.6% 25.4% 14.4% 17.3%

11.2% 5.7% 111.8 2.0 82.7 1.5 2.7 2.5 -164.7

17.2% 15.3% 21.3 1.2 10.0 0.6 1.7 1.6 -550.0

10.7% 4.4% 27.1 1.7 23.6 1.5 2.6 2.5 -206.0

7.3% -0.5% 28.9 2.5 26.7 2.3 3.5 3.4 29.3

6.3% -6.4% 28.8 2.9 27.5 2.7 4.3 4.2 410.1

86.5 24.8 443.6 294.3 117.4 0.0

103.7 10.1 445.5 391.9 137.9 0.0

115.4 45.4 614.4 476.2 166.9 11.5

135.5 66.0 841.5 555.6 194.5 13.6

156.2 124.1 982.1 620.8 215.0 15.6

Source: Company, Maybank KE estimates

3 September 2013

Page 4 of 8

China Minzhong

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 Jacqueline KO, CFA (852) 2268 0633 [email protected]  Consumer Terence LOK (852) 2268 0630 [email protected]  Consumer 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

3 September 2013

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

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 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

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

Page 5 of 8

China Minzhong 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. 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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. 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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.

3 September 2013

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China Minzhong 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 3 September 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 3 September 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

3 September 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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China Minzhong

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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

3 September 2013

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