Regional Morning Meeting Notes, October 30, 2007

CHINA Results Yanzhou Coal (HOLD/HK$17.38/Fair: HK$17.40) 3Q07: Results in line with estimates. Maintain HOLD due to limited asset injection and high operating risk. Update China Automation Group (BUY/HKS$2.95/Target: HK$4.55) A leading automation systems provider in China. We are initiating coverage with BUY recommendation and target price of HK$4.55. Snippet COSCO Pacific (BUY/HK$25.45/Target: HK$24.00 ? Under Review)) 3Q07 performance in line with our forecast. HONG KONG Snippet EganaGoldpfeil (BUY-Under Review/HK$0.66/Target: HK$7.70-Under Review) FY07: Reported a net loss of HK$2b for the year ended 31 May 07. The hefty loss was due to the HK$2b impairment losses on assets. I.T. (NOT RATED/HK$1.93) 1HFY08: Net profit jumped 41.4% yoy to HK$44m. Trading at 12x FY08 PE, the counter looks fairly valued considering its small market capitalisation. INDONESIA Results Astra Agro Lestari (BUY/Rp22,100/Target: Rp16,900-Under Review) 9M07: Net profit doubled yoy to Rp1,285.9b from Rp623.1b in 9M06, thanks to strengthening of international CPO prices. Bank Niaga (HOLD/Rp900/Fair: Rp880) 3Q07: Margin contraction and further deterioration in loan quality depressed earnings. We revised down our earnings estimation and fair price. International Nickel Indonesia (BUY-Under Review/Rp84,000/Target: Rp65,000-Under Review) 9M07: Net profit soared 292.3%, benefitting from a rise in average nickel-in-matte price by 108.9% yoy and increase in nickel-in-matte deliveries. MALAYSIA Update Eastern Corridor Economic Region Masterplan launched yesterday. Total development value of RM112b and 560,000 new jobs over the next 12 years. Hap Seng Plantation (IPO/Retail: RM2.65, Institutional: RM3.05) Efficient small pure plantation operator with 32,695ha of landbank. To be listed on the main board of Bursa Malaysia at FY08 PE of 13.4x. Snippet Equine Capital (BUY/RM2.92/Target: RM6.55) Proposes private placement of up to 10% of share capital. This could be used to potentially raise its 25%-stake in Abad Naluri. SP Setia (BUY/RM8.25/Target: RM9.70) Signed 30-year lease agreement with Tesco for a 9.7-acre plot in Bukit Indah, which should boost traffic flow. YNH Property (BUY/RM2.67/Target: RM3.50) CIMB-Mapletree underwriting en-bloc 66 units of Ceriaan Kiara project in Mont' Kiara for around RM60m or RM380psf. SINGAPORE Results Raffles Medical Group (BUY/S$1.53/Target: S$2.10) 3QFY07: Economics of scale. Update Hongkong Land (BUY/US$4.96/Target: US$5.97) Hong Kong's increasing role as an international financial centre for China will see firm support on office rents in Central, despite new supply. Snippet Fuxing China Group (NOT RATED/S$0.56) Benefitting from solid technical edge. THAILAND Results Dynasty Ceramic (SELL/Bt16.00/Fair: Bt13.23) 3Q07: Earnings continued to decline as the industry was in the low season. Performance is unlikely to improve until FY08. PTT Exploration & Production (BUY/Bt169.00/Target: Bt178.00) 3Q07: Both volume and ASP up qoq and yoy. Thai Stanley (HOLD/ Bt145.0/Fair: Bt152.0) 2QFY08: Sluggish top line expansion but bottom line boosted by margin improvement. TALKING POINT: China Shipping Development (1138.HK): BUY - Construction of four new vessels For more details, click on the link. http://research.uobkayhian.com/research/content.show.action?filename=2007103009271542375237734.pdf