Malaysia Results Review

21 August 2023 Property | Real Estate

UEM Sunrise (UEMS MK) Buy (Maintained)

Target Price (Return): MYR0.92 (+48%)
The Minh And Connaught One To Drive 2H Sales
Price (Market Cap): MYR0.62 (USD675m)
ESG score: 2.9 (out of 4)
Avg Daily Turnover (MYR/USD) 19.5m/4.26m
 BUY, new TP of MYR0.92 from MYR0.70, 48% upside. UEM Sunrise’s Analyst
1H23 net profit is in line. Its 1H23 property sales of MYR1.49bn has already
met management’s target for the year, and we expect the company to book Loong Kok Wen, CFA
MYR1.9-2bn in sales by year-end. Meanwhile, sentiment on the Iskandar +603 9280 8861
Malaysia property market remains upbeat, given the positive news flow in [email protected]
the pipeline. We raise our TP to reflect the better market sentiment ahead,
on the lifting of the political overhang post state elections.
 2Q23 results. Revenue grew QoQ, mainly due to the completion of two
land disposals – MYR29.9m from the Tapah land and MYR38.9m from Plot
B in Nusajaya Tech Park. Meanwhile, finance costs rose during the quarter
(MYR44m vs MYR34m in 1Q23), given the interest rate hikes over the past Share Performance (%)
year. Net gearing improved slightly to 0.46x from 0.47x in 1Q23. Unsold YTD 1m 3m 6m 12m
inventory continued to fall to MYR146m, from MYR176m in the previous Absolute 143.1 59.0 138.5 143.1 110.2
quarter, as more units of its Verdi and Estuari Gardens projects were sold.
Relative 146.4 55.9 137.2 145.2 114.9
 1H23 sales boosted by Collingwood project. UEMS’ 2Q23 property 52-wk Price low/high (MYR) 0.19 – 0.63
sales amounted to MYR1.32bn, vs MYR168m in 1Q23. 1H sales of
MYR1.49bn were largely contributed by the Collingwood project in UEM Sunrise (UEMS MK)
Price Close
Melbourne (MYR873.7m), after the build-to-rent deal was signed in June, Relative to FTSE Bursa Malaysia KLCI Index (RHS)
and sales from the central region contributed MYR477.7m as more projects 0.74 232

were launched in 2Q23. In the meantime, the Minh in Mont’ Kiara (launched 0.64 202
in May) fetched MYR257.2m in sales.
0.54 172

 Potentially MYR1.9-2bn in sales by year-end. The company has 0.44 142

launched MYR2.7bn worth of properties YTD (inclusive of the Collingwood
0.34 112
project), vs the MYR2.5bn planned initially. Demand for The Minh (GDV:
MYR979m) and The Connaught One (GDV: MYR747m), which was 0.24 82

launched in June, has been very encouraging. Management indicated that 0.14 52

Mar-23
Mar-23
Oct-22
Oct-22
Nov-22
Nov-22
Dec-22

Apr-23
Apr-23
May-23

Jul-23
Jul-23
Feb-23
Feb-23
Aug-22
Sep-22
Sep-22

Jan-23
Jan-23

Jun-23
Jun-23

Aug-23
bookings and contractual sales have hit 45% and 49%, as at end-July.
Given the momentum, we expect both projects to continue to drive sales in
2H, and UEMS will likely record MYR1.9-2bn in sales by year-end. Source: Bloomberg

 Forecasts. We maintain our FY23-25 earnings forecasts. Unbilled sales

rose to MYR2.67bn (mainly due to the Collingwood project), vs MYR1.7bn
in 1Q23.
 Higher TP. Our TP is based on a lower 55% discount to RNAV (from 65%),
and 2% ESG discount, given our ESG score of 2.9 for the company. As the
construction of the Johor Bahru-Singapore RTS link is providing good
visibility of improvement in cross-border traffic in future, positive news flow
on Iskandar Malaysia should continue to drive this stock’s re-rating. We
highlight that UEMS used to trade at a 20-30% premium to its RNAV in the
previous property upcycle in 2011-2013.
Overall ESG Score: 2.9 (out of 4)
E: GOOD
UEMS is stringent on its appointment of vendors based on
work quality and track record. All of UEMS' projects are
designed with sustainability features that promote green
Forecasts and Valuation Dec-21 Dec-22 Dec-23F Dec-24F Dec-25F living. The company also practises waste management and
the efficient utilisation of electricity and water.
Total turnover (MYRm) 1,211 1,473 1,416 1,449 1,520
S: EXCELLENT
Recurring net profit (MYRm) (214) 74 82 86 91 UEMS emphasises on customer satisfaction and
Recurring net profit growth (%) (22.7) - 11.0 4.9 6.0 addresses defects effectively (89.8% of defects lodged
were settled within 30 days, an improvement from 78.4% in
Recurring EPS (MYR) (0.04) 0.01 0.02 0.02 0.02
2018). The company is also involved in various charity
Recurring P/E (x) na 42.35 38.16 36.38 34.32 events to help provide educational support and address
P/B (x) 0.47 0.46 0.46 0.45 0.45 social issues.
G: GOOD
Dividend Yield (%) na na na na na
58% of UEMS' board members are independent. UEMS
Return on average equity (%) (3.1) 1.1 1.0 1.2 1.3 has an in-house investor relations team and holds investor
Net debt to equity (%) 49.4 47.3 49.4 47.4 48.6 meetings regularly.
Source: Company data, RHB

See important disclosures at the end of this report

1
Market Dateline / PP 19489/05/2019 (035080)
UEM Sunrise Malaysia Results Review
21 August 2023 Property | Real Estate

Financial Exhibits
Asia Financial summary (MYR) Dec-21 Dec-22 Dec-23F Dec-24F Dec-25F
Malaysia Recurring EPS (0.04) 0.01 0.02 0.02 0.02
Property EPS (0.04) 0.01 0.01 0.02 0.02
UEM Sunrise BVPS 1.32 1.34 1.35 1.37 1.39
UEMS MK Return on average equity (%) (3.1) 1.1 1.0 1.2 1.3
Buy Return on average assets (%) (1.6) 0.6 0.5 0.6 0.7

Valuation basis Valuation metrics Dec-21 Dec-22 Dec-23F Dec-24F Dec-25F

55% discount to RNAV Recurring P/E (x) na 42.35 38.16 36.38 34.32
P/B (x) 0.5 0.5 0.5 0.5 0.4
Key drivers EV/EBITDA (x) na 17.34 21.86 17.93 18.04
i. New property sales;
ii. Substantial increase in foreign direct investments Income statement (MYRm) Dec-21 Dec-22 Dec-23F Dec-24F Dec-25F
in Iskandar; Total turnover 1,211 1,473 1,416 1,449 1,520
iii. Mega infrastructure projects. Gross profit 220 431 418 468 474
EBITDA (22) 296 245 294 300
Key risks
Depreciation and amortisation (56) (53) (53) (53) (53)
Unexpected turn in market conditions Operating profit (78) 243 191 240 246
Net interest (145) (143) (158) (155) (149)
Company Profile
Pre-tax profit (210) 128 100 116 128
UEM Sunrise (previously known as UEM Land) is a Taxation 2 (51) (32) (34) (36)
company under Khazanah Nasional. It is the developer
Reported net profit (209) 75 67 81 91
undertaking developments in Nusajaya Iskandar
Recurring net profit (214) 74 82 86 91

Cash flow (MYRm) Dec-21 Dec-22 Dec-23F Dec-24F Dec-25F

Change in working capital 112 (184) (0) (66) (96)
Cash flow from operations 74 45 183 168 149
Capex 0 0 (258) 0 (164)
Cash flow from investing activities 64 294 (258) 56 (164)
Cash flow from financing activities 94 64 (22) (21) (20)
Cash at beginning of period 1,086 853 1,020 749 764
Net change in cash 232 404 (97) 203 (35)
Ending balance cash 1,318 1,257 923 952 729

Balance sheet (MYRm) Dec-21 Dec-22 Dec-23F Dec-24F Dec-25F

Total cash and equivalents 858 1,065 794 809 651
Tangible fixed assets 5,512 5,239 5,444 5,335 5,446
Intangible assets 621 621 621 621 621
Total investments 2,996 2,921 2,921 2,921 2,921
Total other assets 749 888 955 986 996
Total assets 12,978 13,095 13,033 13,010 13,073
Short-term debt 1,000 1,955 1,905 1,855 1,805
Total long-term debt 3,213 2,361 2,329 2,295 2,313
Total liabilities 6,183 6,221 6,076 5,967 5,937
Shareholders' equity 6,692 6,769 6,851 6,938 7,029
Minority interests 103 104 105 106 107
Total equity 6,795 6,874 6,957 7,044 7,136
Total liabilities & equity 12,978 13,095 13,033 13,010 13,073

Key metrics Dec-21 Dec-22 Dec-23F Dec-24F Dec-25F

Revenue growth (%) 6.5 21.6 (3.9) 2.3 4.9
Recurring net profit growth (%) (22.7) 0.0 11.0 4.9 6.0
Recurrent EPS growth (%) (26.7) 0.0 11.0 4.9 6.0
Gross margin (%) 18.1 29.3 29.5 32.3 31.2
Recurring net profit margin (%) (17.7) 5.0 5.8 6.0 6.0

Source: Company data, RHB

See important disclosures at the end of this report

2
Market Dateline / PP 19489/05/2019 (035080)
UEM Sunrise Malaysia Results Review
21 August 2023 Property | Real Estate

Results At a Glance

Figure 1: Quarterly results review

FYE Dec (MYRm) 2Q22 1Q23 2Q23 QoQ YoY 1H22 1H23 YoY Comments
(%) (%) (%)
Turnover 365.0 240.8 364.0 51.2 (0.3) 781.5 604.7 (22.6)

Property
Development
- Direct development 271.6 207.1 252.5 21.9 (7.0) 492.3 459.6 (6.7) 1H23 development revenue was mainly
contributed by Residensi AVA,
Residensi Allevia, Serene Heights,
Residensi Astrea and KAIA Heights.
- Developed land 63.7 4.8 79.8 1558.0 25.4 234.5 84.7 n.m. Land sales were higher in 1H22, due to
sales the disposal of industrial plots in Phase
3 of SiLC in 1Q22, while land sales in
2Q23 came from the disposal of 623-
acre land in Tapah for MYR29.9m and
68-acre Plot B in Nusajaya Tech Park
for MYR38.9m.
- Strategic land sales 0.0 0.0 0.0 n.m. n.m. 0.0 0.0 n.m.

Property Investment 26.1 26.5 27.9 5.5 7.2 46.9 54.4 16.1

Others 0.0 0.0 0.0 n.m. n.m. 0.0 0.0 n.m.

EBIT 57.8 66.6 69.9 5.0 21.1 117.0 136.6 16.7 EBIT margin was better due to higher
margins for selected completed
products in the central and southern
region, in addition to the contribution
from the settlement of balance units in
Aurora Melbourne and recognition of
cost savings.
EBIT margin (%) 15.8 27.7 19.2 15.0 22.6

Net interest (35.6) (34.0) (44.3) 30.1 24.3 (70.6) (78.3) 11.0

Pretax profit 32.2 27.6 44.9 62.8 39.4 68.0 72.6 6.7

Pretax margin (%) 8.8 11.5 12.3 8.7 12.0

Taxation (11.2) (11.8) (17.1) 44.0 51.7 (27.8) (28.9) 3.9 The higher effective tax rate was due to
non-deductible expenses and
unrecognised tax losses for certain
loss-making entities.
Tax rate (%) 34.9 42.9 37.9 40.9 39.8

Minority interest (0.3) (0.4) (3.2) n.m. n.m. (0.5) (3.6) n.m.

Net profit 20.7 15.4 24.7 60.9 19.3 39.7 40.1 n.m.

Core net profit 20.7 15.4 24.7 60.9 19.3 39.7 40.1 n.m. Within expectations.

EPS (sen) 0.4 0.3 0.5 n.m. n.m. 0.8 0.8 n.m.

Gross DPS (sen) 0.0 0.0 0.0 0.0 0.0

NTA/share (MYR) 1.3 1.3 1.3 1.3 1.3

Source: Company data, RHB

See important disclosures at the end of this report

3
Market Dateline / PP 19489/05/2019 (035080)
UEM Sunrise Malaysia Results Review
21 August 2023 Property | Real Estate

Figure 2: RNAV estimate

Projects Location Remaining land Remaining GDV Stake NPV @ 11%
(acres) (MYR m)
Ongoing projects
East Ledang Iskandar Puteri 98.1 1,683.7 100% 125.2
Nusa Idaman Iskandar Puteri 19.1 223.4 100% 20.9
Nusa Bayu Iskandar Puteri 36.5 447.4 100% 104.7
Estuari Iskandar Puteri 210.6 3,850.6 100% 183.3
Aspira Lakehomes, Gerbang Nusajaya Iskandar Puteri 13.6 263.6 100% 17.3
Almas, Puteri Harbour Iskandar Puteri 0.0 1,385.5 100% 102.0
Mall of Medini Iskandar Puteri 26.2 2,097.0 55% 30.5
Horizon Hills Iskandar Puteri 318.6 1,563.7 50% 61.1
Emerald Bay Iskandar Puteri 90.3 3,246.6 40% 77.3
Nusajaya Tech Park Iskandar Puteri 381.9 3,158.0 40% 61.1
The Maris, Desaru Desaru 198.7 1,905.0 51% 19.2
Serene Heights Selangor 192.9 3,010.7 100% 143.3
Radia Bukit Jelutong Selangor 7.5 1,038.9 50% 19.2
Residensi Astrea KL 0.0 324.6 100% 21.7
Solaris Parq KL 14.1 1,656.2 100% 147.8
KAIA Heights, Equine Park Selangor 14.3 655.0 100% 30.7
Perth land Australia 1.2 1,350.0 100% 68.3

Pipeline projects
Gerbang Nusajaya Iskandar Puteri 2,251.6 28,319.8 100% 759.5
Gerbang Nusantara Iskandar Puteri 103.1 501.9 100% 21.2
Serassa Greens (I5) Iskandar Puteri 66.1 389.2 100% 3.9
Oasis Iskandar Puteri 34.6 248.7 100% 4.6
Artisan Hills, Kajang Selangor 65.0 1,485.9 100% 63.1
Angkasa Raya KL 1.6 1,903.6 100% 92.4
MK 31 KL 12.4 742.0 100% 43.9
Taman Pertama, Cheras KL 11.5 1,108.0 100% 28.8
Dutch Lady land in PJ KL 9.9 1,290.0 100% 44.8
Kelana Jaya land KL 9.1 1,100.0 100% 26.3
Kiara Bay KL 72.7 16,705.2 50% 290.4
Durban South Africa 100% 19.0

Remaining land Est. GDV

Catalyst development Location (acres) (MYR m) Stake NPV
Puteri Harbour Iskandar Puteri 96.3 461.4 100% 12.4
Afiat Healthpark Iskandar Puteri 28.2 49.1 100% 1.6
Sireh Park Iskandar Puteri 343.0 298.8 100% 9.1

Undeveloped landbank
Remaining land Market value
Nusajaya Land efficiency (acres) (MYR psf) Stake Net surplus
Pocket lands / others 0.70 312.4 100 100% 666.8
Outside Nusajaya
Klang Valley (Segambut / Mont' Kiara, Klang etc) 0.70 25.8 300 100% 165.2

Total NPV and net surplus 3,486.6

Unbilled sales 227.0
NTA 6,796.9
Total RNAV 10,510.4
Share base 5,058.5
RNAV/share 2.08
Discount to RNAV 55%
Intrinsic value 0.93
ESG discount 2%
Target price (MYR) 0.92

Source: RHB

See important disclosures at the end of this report

4
Market Dateline / PP 19489/05/2019 (035080)
UEM Sunrise Malaysia Results Review
21 August 2023 Property | Real Estate

Recommendation Chart
Date Recommendation Target Price Price
Price Close
2023-07-16 Buy 0.70 0.36
1.0 Recommendations & Target Price
2023-05-18 Neutral 0.28 0.26
0.93

0.84

0.86
1.14

0.99

0.82

0.70

0.70

0.55

0.53
0.50

0.41

0.38

0.38

0.38

0.35

0.22
0.28

0.70
0.9 2023-01-04 Neutral 0.28 0.25

0.42

0.45

0.33
0.8 2022-11-23 Neutral 0.22 0.21
0.7 2022-08-24 Neutral 0.33 0.30
0.6 2022-08-04 Neutral 0.35 0.31
0.5 2022-05-25 Neutral 0.38 0.33

0.4 2022-02-23 Neutral 0.38 0.36

0.3 2021-11-24 Neutral 0.38 0.35

2021-08-25 Neutral 0.41 0.37
0.2
Buy Neutral Sell Trading Buy Take Profit Not Rated 2021-05-30 Neutral 0.45 0.42
0.1
Aug-18 Nov-19 Mar-21 Jun-22 2021-05-25 Buy 0.50 0.41
2021-03-25 Buy 0.53 0.45
Source: RHB, Bloomberg
2020-08-24 Buy 0.55 0.41
2020-06-21 Buy 0.70 0.45

Source: RHB, Bloomberg

ESG Rating History

4.0

3.0 3.1 3.1 3.1 3.1

2.9 2.9 2.9 2.8

2.0

1.0

0.0

Source: RHB

See important disclosures at the end of this report

5
Market Dateline / PP 19489/05/2019 (035080)
RHB Guide to Investment Ratings This report may contain forward-looking statements which are often but not always
identified by the use of words such as “believe”, “estimate”, “intend” and “expect” and
Buy: Share price may exceed 10% over the next 12 months statements that an event or result “may”, “will” or “might” occur or be achieved and
Trading Buy: Share price may exceed 15% over the next 3 months, however longer- other similar expressions. Such forward-looking statements are based on assumptions
term outlook remains uncertain made and information currently available to RHB and are subject to known and
Neutral: Share price may fall within the range of +/- 10% over the next unknown risks, uncertainties and other factors which may cause the actual results,
12 months performance or achievement to be materially different from any future results,
Take Profit: Target price has been attained. Look to accumulate at lower levels performance or achievement, expressed or implied by such forward-looking
Sell: Share price may fall by more than 10% over the next 12 months statements. Caution should be taken with respect to such statements and recipients
Not Rated: Stock is not within regular research coverage of this report should not place undue reliance on any such forward-looking statements.
RHB expressly disclaims any obligation to update or revise any forward-looking
Investment Research Disclaimers statements, whether as a result of new information, future events or circumstances
after the date of this publication or to reflect the occurrence of unanticipated events.
RHB has issued this report for information purposes only. This report is intended for
circulation amongst RHB and its affiliates’ clients generally or such persons as may be The use of any website to access this report electronically is done at the recipient’s own
deemed eligible by RHB to receive this report and does not have regard to the specific risk, and it is the recipient’s sole responsibility to take precautions to ensure that it is free
investment objectives, financial situation and the particular needs of any specific person from viruses or other items of a destructive nature. This report may also provide the
who may receive this report. This report is not intended, and should not under any addresses of, or contain hyperlinks to, websites. RHB takes no responsibility for the
circumstances be construed as, an offer or a solicitation of an offer to buy or sell the content contained therein. Such addresses or hyperlinks (including addresses or
securities referred to herein or any related financial instruments. hyperlinks to RHB own website material) are provided solely for the recipient’s
convenience. The information and the content of the linked site do not in any way form
This report may further consist of, whether in whole or in part, summaries, research, part of this report. Accessing such website or following such link through the report or
compilations, extracts or analysis that has been prepared by RHB’s strategic, joint RHB website shall be at the recipient’s own risk.
venture and/or business partners. No representation or warranty (express or implied)
is given as to the accuracy or completeness of such information and accordingly This report may contain information obtained from third parties. Third party content
investors should make their own informed decisions before relying on the same. providers do not guarantee the accuracy, completeness, timeliness or availability of any
information and are not responsible for any errors or omissions (negligent or otherwise),
This report is not directed to, or intended for distribution to or use by, any person or regardless of the cause, or for the results obtained from the use of such content. Third
entity who is a citizen or resident of or located in any locality, state, country or other party content providers give no express or implied warranties, including, but not limited
jurisdiction where such distribution, publication, availability or use would be contrary to to, any warranties of merchantability or fitness for a particular purpose or use. Third party
the applicable laws or regulations. By accepting this report, the recipient hereof (i) content providers shall not be liable for any direct, indirect, incidental, exemplary,
represents and warrants that it is lawfully able to receive this document under the laws compensatory, punitive, special or consequential damages, costs, expenses, legal fees,
and regulations of the jurisdiction in which it is located or other applicable laws and (ii) or losses (including lost income or profits and opportunity costs) in connection with any
acknowledges and agrees to be bound by the limitations contained herein. Any failure use of their content.
to comply with these limitations may constitute a violation of applicable laws.
The research analysts responsible for the production of this report hereby certifies that
All the information contained herein is based upon publicly available information and the views expressed herein accurately and exclusively reflect his or her personal views
has been obtained from sources that RHB believes to be reliable and correct at the and opinions about any and all of the issuers or securities analysed in this report and
time of issue of this report. However, such sources have not been independently were prepared independently and autonomously. The research analysts that authored
verified by RHB and/or its affiliates and this report does not purport to contain all this report are precluded by RHB in all circumstances from trading in the securities or
information that a prospective investor may require. The opinions expressed herein other financial instruments referenced in the report, or from having an interest in the
are RHB’s present opinions only and are subject to change without prior notice. RHB company(ies) that they cover.
is not under any obligation to update or keep current the information and opinions
expressed herein or to provide the recipient with access to any additional information. The contents of this report is strictly confidential and may not be copied, reproduced,
Consequently, RHB does not guarantee, represent or warrant, expressly or impliedly, published, distributed, transmitted or passed, in whole or in part, to any other person
as to the adequacy, accuracy, reliability, fairness or completeness of the information without the prior express written consent of RHB and/or its affiliates. This report has
and opinion contained in this report. Neither RHB (including its officers, directors, been delivered to RHB and its affiliates’ clients for information purposes only and upon
associates, connected parties, and/or employees) nor does any of its agents accept the express understanding that such parties will use it only for the purposes set forth
any liability for any direct, indirect or consequential losses, loss of profits and/or above. By electing to view or accepting a copy of this report, the recipients have agreed
damages that may arise from the use or reliance of this research report and/or further that they will not print, copy, videotape, record, hyperlink, download, or otherwise
communications given in relation to this report. Any such responsibility or liability is attempt to reproduce or re-transmit (in any form including hard copy or electronic
hereby expressly disclaimed. distribution format) the contents of this report. RHB and/or its affiliates accepts no
liability whatsoever for the actions of third parties in this respect.
Whilst every effort is made to ensure that statement of facts made in this report are
accurate, all estimates, projections, forecasts, expressions of opinion and other The contents of this report are subject to copyright. Please refer to Restrictions on
subjective judgments contained in this report are based on assumptions considered to Distribution below for information regarding the distributors of this report. Recipients
be reasonable and must not be construed as a representation that the matters referred must not reproduce or disseminate any content or findings of this report without the
to therein will occur. Different assumptions by RHB or any other source may yield express permission of RHB and the distributors.
substantially different results and recommendations contained on one type of research
product may differ from recommendations contained in other types of research. The The securities mentioned in this publication may not be eligible for sale in some states
performance of currencies may affect the value of, or income from, the securities or or countries or certain categories of investors. The recipient of this report should have
any other financial instruments referenced in this report. Holders of depositary receipts regard to the laws of the recipient’s place of domicile when contemplating transactions
backed by the securities discussed in this report assume currency risk. Past in the securities or other financial instruments referred to herein. The securities
performance is not a guide to future performance. Income from investments may discussed in this report may not have been registered in such jurisdiction. Without
fluctuate. The price or value of the investments to which this report relates, either prejudice to the foregoing, the recipient is to note that additional disclaimers, warnings
directly or indirectly, may fall or rise against the interest of investors. or qualifications may apply based on geographical location of the person or entity
receiving this report.
This report may contain comments, estimates, projections, forecasts and expressions
of opinion relating to macroeconomic research published by RHB economists of which The term “RHB” shall denote, where appropriate, the relevant entity distributing or
should not be considered as investment ratings/advice and/or a recommendation by disseminating the report in the particular jurisdiction referenced below, or, in every
such economists on any securities discussed in this report. other case, RHB Investment Bank Berhad and its affiliates, subsidiaries and related
companies.
This report does not purport to be comprehensive or to contain all the information that a
prospective investor may need in order to make an investment decision. The recipient of RESTRICTIONS ON DISTRIBUTION
this report is making its own independent assessment and decisions regarding any
securities or financial instruments referenced herein. Any investment discussed or Malaysia
recommended in this report may be unsuitable for an investor depending on the investor’s This report is issued and distributed in Malaysia by RHB Investment Bank Berhad
specific investment objectives and financial position. The material in this report is general (“RHBIB”). The views and opinions in this report are our own as of the date hereof and
information intended for recipients who understand the risks of investing in financial is subject to change. If the Financial Services and Markets Act of the United Kingdom
instruments. This report does not take into account whether an investment or course of or the rules of the Financial Conduct Authority apply to a recipient, our obligations
action and any associated risks are suitable for the recipient. Any recommendations owed to such recipient therein are unaffected. RHBIB has no obligation to update its
contained in this report must therefore not be relied upon as investment advice based on opinion or the information in this report.
the recipient's personal circumstances. Investors should make their own independent
evaluation of the information contained herein, consider their own investment objective, Thailand
financial situation and particular needs and seek their own financial, business, legal, tax This report is issued and distributed in the Kingdom of Thailand by RHB Securities
and other advice regarding the appropriateness of investing in any securities or the (Thailand) PCL, a licensed securities company that is authorised by the Ministry of
investment strategies discussed or recommended in this report. Finance, regulated by the Securities and Exchange Commission of Thailand and is a

6
Market Dateline / PP 19489/05/2019 (035080)
member of the Stock Exchange of Thailand. The Thai Institute of Directors Association 1. RHBIB does not have a financial interest in the securities or other capital market
has disclosed the Corporate Governance Report of Thai Listed Companies made products of the subject company(ies) covered in this report.
pursuant to the policy of the Securities and Exchange Commission of Thailand. RHB 2. RHBIB is not a market maker in the securities or capital market products of the
Securities (Thailand) PCL does not endorse, confirm nor certify the result of the Corporate subject company(ies) covered in this report.
Governance Report of Thai Listed Companies. 3. None of RHBIB’s staff or associated person serve as a director or board member*
of the subject company(ies) covered in this report
Indonesia *For the avoidance of doubt, the confirmation is only limited to the staff of research
This report is issued and distributed in Indonesia by PT RHB Sekuritas Indonesia. This department
research does not constitute an offering document and it should not be construed as 4. RHBIB did not receive compensation for investment banking or corporate finance
an offer of securities in Indonesia. Any securities offered or sold, directly or indirectly, services from the subject company in the past 12 months.
in Indonesia or to any Indonesian citizen or corporation (wherever located) or to any 5. RHBIB did not receive compensation or benefit (including gift and special cost
Indonesian resident in a manner which constitutes a public offering under Indonesian arrangement e.g. company/issuer-sponsored and paid trip) in relation to the
laws and regulations must comply with the prevailing Indonesian laws and regulations. production of this report.

Singapore Thailand
This report is issued and distributed in Singapore by RHB Bank Berhad (through its Save as disclosed in the following link RHB Research Conflict Disclosures - Aug 2023
Singapore branch) which is an exempt capital markets services entity and an exempt and to the best of our knowledge, RHB Securities (Thailand) PCL hereby declares that:
financial adviser regulated by the Monetary Authority of Singapore. RHB Bank Berhad 1. RHB Securities (Thailand) PCL does not have a financial interest in the securities
(through its Singapore branch) may distribute reports produced by its respective or other capital market products of the subject company(ies) covered in this report.
foreign entities, affiliates or other foreign research houses pursuant to an arrangement 2. RHB Securities (Thailand) PCL is not a market maker in the securities or capital
under Regulation 32C of the Financial Advisers Regulations. Where the report is market products of the subject company(ies) covered in this report.
distributed in Singapore to a person who is not an Accredited Investor, Expert Investor 3. None of RHB Securities (Thailand) PCL’s staff or associated person serve as a
or an Institutional Investor, RHB Bank Berhad (through its Singapore branch) accepts director or board member* of the subject company(ies) covered in this report
legal responsibility for the contents of the report to such persons only to the extent 1. *For the avoidance of doubt, the confirmation is only limited to the staff of research
required by law. Singapore recipients should contact RHB Bank Berhad (through its department
Singapore branch) in respect of any matter arising from or in connection with the report. 4. RHB Securities (Thailand) PCL did not receive compensation for investment
banking or corporate finance services from the subject company in the past 12
United States months.
This report was prepared by RHB is meant for distribution solely and directly to “major” 5. RHB Securities (Thailand) PCL did not receive compensation or benefit (including
U.S. institutional investors as defined under, and pursuant to, the requirements of Rule gift and special cost arrangement e.g. company/issuer-sponsored and paid trip) in
15a-6 under the U.S. Securities and Exchange Act of 1934, as amended (the relation to the production of this report.
“Exchange Act”) via a registered U.S. broker-dealer as appointed by RHB from time to
time. Accordingly, any access to this report via Bursa Marketplace or any other Indonesia
Electronic Services Provider is not intended for any party other than “major” US Save as disclosed in the following link RHB Research Conflict Disclosures - Aug 2023
institutional investors (via a registered U.S broker-dealer), nor shall be deemed as and to the best of our knowledge, PT RHB Sekuritas Indonesia hereby declares that:
solicitation by RHB in any manner. RHB is not registered as a broker-dealer in the 1. PT RHB Sekuritas Indonesia and its investment analysts, does not have any
United States and currently has not appointed a U.S. broker-dealer. Additionally, RHB interest in the securities of the subject company(ies) covered in this report.
does not offer brokerage services to U.S. persons. Any order for the purchase or sale For the avoidance of doubt, interest in securities include the following:
of all securities discussed herein must be placed with and through a registered U.S. a) Holding directly or indirectly, individually or jointly own/hold securities or
broker-dealer as appointed by RHB from time to time as required by the Exchange Act entitled for dividends, interest or proceeds from the sale or exercise of the
Rule 15a-6. For avoidance of doubt, RHB reiterates that it has not appointed any U.S. subject company’s securities covered in this report*;
broker-dealer during the issuance of this report. This report is confidential and not b) Being bound by an agreement to purchase securities or has the right to
intended for distribution to, or use by, persons other than the recipient and its transfer the securities or has the right to pre subscribe the securities*.
employees, agents and advisors, as applicable. Additionally, where research is c) Being bound or required to buy the remaining securities that are not
distributed via Electronic Service Provider, the analysts whose names appear in this subscribed/placed out pursuant to an Initial Public Offering*.
report are not registered or qualified as research analysts in the United States and are d) Managing or jointly with other parties managing such parties as referred to in
not associated persons of any registered U.S. broker-dealer as appointed by RHB (a), (b) or (c) above.
from time to time and therefore may not be subject to any applicable restrictions under 2. PT RHB Sekuritas Indonesia is not a market maker in the securities or capital
Financial Industry Regulatory Authority (“FINRA”) rules on communications with a market products of the subject company(ies) covered in this report.
subject company, public appearances and personal trading. Investing in any non-U.S. 3. None of PT RHB Sekuritas Indonesia’s staff** or associated person serve as a
securities or related financial instruments discussed in this research report may director or board member* of the subject company(ies) covered in this report.
present certain risks. The securities of non-U.S. issuers may not be registered with, or 4. PT RHB Sekuritas Indonesia did not receive compensation for investment banking
be subject to the regulations of, the U.S. Securities and Exchange Commission. or corporate finance services from the subject company in the past 12 months.
Information on non-U.S. securities or related financial instruments may be limited. 5. PT RHB Sekuritas Indonesia** did not receive compensation or benefit (including
Foreign companies may not be subject to audit and reporting standards and regulatory gift and special cost arrangement e.g. company/issuer-sponsored and paid trip) in
requirements comparable to those in the United States. The financial instruments relation to the production of this report:
discussed in this report may not be suitable for all investors. Transactions in foreign Notes:
markets may be subject to regulations that differ from or offer less protection than *The overall disclosure is limited to information pertaining to PT RHB Sekuritas
those in the United States. Indonesia only.
**The disclosure is limited to Research staff of PT RHB Sekuritas Indonesia only.
DISCLOSURE OF CONFLICTS OF INTEREST
Singapore
RHB Investment Bank Berhad, its subsidiaries (including its regional offices) and Save as disclosed in the following link RHB Research Conflict Disclosures - Aug 2023
associated companies, (“RHBIB Group”) form a diversified financial group, and to the best of our knowledge, the Singapore Research department of RHB Bank
undertaking various investment banking activities which include, amongst others, Berhad (through its Singapore branch) hereby declares that:
underwriting, securities trading, market making and corporate finance advisory. 1. RHB Bank Berhad, its subsidiaries and/or associated companies do not make a
market in any issuer covered by the Singapore research analysts in this report.
As a result of the same, in the ordinary course of its business, any member of the 2. RHB Bank Berhad, its subsidiaries and/or its associated companies and its
RHBIB Group, may, from time to time, have business relationships with, hold any analysts do not have a financial interest (including a shareholding of 1% or more)
positions in the securities and/or capital market products (including but not limited to in the issuer covered by the Singapore research analysts in this report.
shares, warrants, and/or derivatives), trade or otherwise effect transactions for its own 3. RHB Bank Berhad’s Singapore research staff or connected persons do not serve
account or the account of its customers or perform and/or solicit investment, advisory on the board or trustee positions of the issuer covered by the Singapore research
or other services from any of the subject company(ies) covered in this research report. analysts in this report.
4. RHB Bank Berhad, its subsidiaries and/or its associated companies do not have
While the RHBIB Group will ensure that there are sufficient information barriers and and have not within the last 12 months had any corporate finance advisory
internal controls in place where necessary, to prevent/manage any conflicts of interest relationship with the issuer covered by the Singapore research analysts in this
to ensure the independence of this report, investors should also be aware that such report or any other relationship that may create a potential conflict of interest.
conflict of interest may exist in view of the investment banking activities undertaken by 5. RHB Bank Berhad’s Singapore research analysts, or person associated or
the RHBIB Group as mentioned above and should exercise their own judgement connected to it do not have any interest in the acquisition or disposal of, the
before making any investment decisions. securities, specified securities based derivatives contracts or units in a collective
investment scheme covered by the Singapore research analysts in this report.
In Singapore, investment research activities are conducted under RHB Bank Berhad 6. RHB Bank Berhad’s Singapore research analysts do not receive any
(through its Singapore branch), and the disclaimers above similarly apply. compensation or benefit in connection with the production of this research report
or recommendation on the issuer covered by the Singapore research analysts.
Malaysia
Save as disclosed in the following link RHB Research Conflict Disclosures - Aug 2023 Analyst Certification
and to the best of our knowledge, RHBIB hereby declares that: The analyst(s) who prepared this report, and their associates hereby, certify that:

7
Market Dateline / PP 19489/05/2019 (035080)
(1) they do not have any financial interest in the securities or other capital market
products of the subject companies mentioned in this report, except for:

Analyst Company
- -

(2) no part of his or her compensation was, is or will be directly or indirectly related to
the specific recommendations or views expressed in this report.

KUALA LUMPUR JAKARTA

RHB Investment Bank Bhd PT RHB Sekuritas Indonesia
Level 3A, Tower One, RHB Centre Revenue Tower, 11th Floor, District 8 - SCBD
Jalan Tun Razak Jl. Jendral Sudirman Kav 52-53
Kuala Lumpur 50400 Jakarta 12190
Malaysia Indonesia
Tel : +603 9280 8888 Tel : +6221 509 39 888
Fax : +603 9200 2216 Fax : +6221 509 39 777

BANGKOK SINGAPORE
RHB Securities (Thailand) PCL RHB Bank Berhad (Singapore branch)
10th Floor, Sathorn Square Office Tower 90 Cecil Street
98, North Sathorn Road, Silom #04-00 RHB Bank Building
Bangrak, Bangkok 10500 Singapore 069531
Thailand Fax: +65 6509 0470
Tel: +66 2088 9999
Fax :+66 2088 9799

8
Market Dateline / PP 19489/05/2019 (035080)