Holding Company Series

Genting Bhd (GENT MK)

GENT NAV Discount as a Hedge For a Possible GENS Reversal
Opportunity Genting Berhad NAV Discount as a Hedge For a Possible Reversal in Genting Singapore We believe that the Genting Berhad (GENT MK) discount currently looks attractive at a 28% discount to NAV, which represents the lower end of its recent trading range. We also believe that the valuation of its high growth subsidiary, Genting Singapore (GENS SP), has become quite stretched on the back of the Singapore gaming theme and the Companys very strong 2Q10 results. Given the relatively high volatility of GENS, we believe that going long GENT might provide an interesting hedge to reduce risk and directionality in a short GENS position. GENTs discount to NAV also has some modest positive catalysts with regards to managements efforts to monetize the Companys Energy and Power assets.

Genting Bhd (GENT MK) NAV Discount at 28%

Assets Genting Singapore Genting Malaysia Genting Plantation
RW Genting Management Fees Power Property Oil & Gas

Notes GENS SP GENM MK GENP MK DCF Book - 1H10 Book - 1H10 Book - 1H10 As at 2Q2010 GENT MK

Mkt Cap RMmn

60,222.44 20,806.08 6,351.55

USD mcap 19,540 6,751 2,061

Last Price 2.08 3.52 8.37

Stake
51.99%

Value RMmn

RM/shr 8.45 2.76 0.94 1.37 0.78 0.16 0.20 (0.44) 14.21 10.21 -28%

% NAV 59% 19% 7% 10% 5% 1% 1% -3%

Net Cash/(Net Debt) Net Asset Value

Genting Berhad

37,828.66

10.52

31,310 49.06% 10,207 54.58% 3,467 5,072 100.00% 2,891 55.00% 578 95.00% 746 (1,637) 52,634 37,829 (Discount)/Premium to NAV

Source: Knight Research Asia, Genting Group Financial Statements

GENT has had a strong run over the last 3-months, up 44%. While seemingly heady performance, key growth subsidiary GENS has rallied by 76% over the same period on the back of an impressive 1H10 from Resorts World Sentosa (RWS). Despite a compelling operational story, we believe GENS looks quite demanding: Expensive valuation - 2011E EV/EBITDA of 14.6x, 2nd highest market cap of any listed casino. Retail speculation? - Seems to have attracted significant speculative retail interest with volumes doubling since August at US$ 190mn/d. Consensus view cooling - Has begun to experience broker downgrades, with two recommendation downgrades last week. High expectations the strong 2Q10 results may have resulted in overly optimistic extrapolation of future performance, with headwinds from Marina Bay Sands ramp up, potential regulatory risk and reduction of novelty factor. Given the high volatility and strong momentum of GENS, we understand the hesitation to short the stock outright. Given our relatively positive outlook on the GENT discount, we believe that it would make an interesting pair relative to GENS, as GENS makes up 60% of its NAV and the two stocks have exhibited increasing correlation of late. Those with a strong negative view on GENS may consider a relatively smaller sized hedge ratio of GENT to GENS. A pure view on the discount would suggest a more even hedge ratio. Knight Capital Asia Limited Will Stephens (+852) 3987 5250 wstephens@knight.com 18 October 2011

This research report and Knight Research Asia reports are products of Knight Capital Asia Limited, licensed for regulated activities, including Type 4 regulated activities (advising on securities) by the Hong Kong Securities and Futures Commission. This research is distributed by Knight Equity Markets L.P. and its affiliates in their respective jurisdictions. See the Appendix A page of this document for the analyst certification and Important Disclosures and Disclaimers regarding Knight Equity Markets L.P., its affiliates and the research analysts who prepared this research.

Knight Research Asia

Relative Performance of Genting Group Companies

200 180
Indexed Performance
-16% -18% -20%
Discount (%)

Genting Berhad Discount To NAV

160 140 120 100 80

-22% -24% -26% -28% -30%

60 Dec-09 Feb-10 GENT MK equity GENM MK equity Source: Knight Asia Research, Bloomberg Oct-09 Apr-10 Jun-10 Aug-10 GENS SP equity GENP MK equity Oct-10

Oct-09

Dec-09

Feb-10

Apr-10

Jun-10

Aug-10

Oct-10

Discount to NAV

Source: Knight Asia Research, Bloomberg

In this report, we highlight 1) recent trends in Genting Berhads subsidiaries, 2) analyze its NAV discount and 3) highlight some of the concerns surrounding Genting Singapores valuation. Recent Group Restructuring Over the past few years Genting has undertaken a group restructuring, flattening out the corporate structure. It has also undertaken a corporate rebranding exercise, converting all the major corporate entities to Genting branded companies and rolling out a global Resorts World brand for its gaming properties. Non-Core Asset Sales The Group has stated it is re-focusing on its core market of gaming and leisure. Specifically, management has indicated interest in selling GENTs power and E&P businesses: Oil & Gas. According to GENT management, the Company is planning a complete divestment from its Oil & Gas assets. They are targeting a sale in the next 12 months. Management noted that these assets are relatively early / exploration phase assets. GENT does not want to commit to the capex to take the assets into production. As per GENTs 1H10 interim financials, the oil and gas assets have a book value of Rm 746mn. The Company indicated this is largely the accumulated expenditure thus far on the business. Power Assets. Management stated that they are considering a partial exit of the Groups power assets, including a potential direct listing of the power businesses. They have currently engaged 3rd party consultants. The power assets are located in Malaysia, China and India. Per GENTs 1H10 interim report they have a book value of RM 2.9bn. Based on stated book value, we estimate these two assets make up approximately 6% of GENTs NAV, any steps to exit these businesses should help to reduce Gentings holding company discount. Key Subsidiary Update Below we give a summary of our discussions with Genting management regarding developments at GENTs various listed subsidiaries. Genting Malaysia (GENM MK). Genting Malaysias primary business is the operation of the Groups cash cow business of Resorts World Genting, in Malaysias Genting Highlands. UK Gaming. GENM is currently finalizing its acquisition of the Groups UK gaming operations from GENS, which it expects to close at the end of 2010. According to management, the UK business is improving.

Knight Research Asia

NY Aqueduct Project. GENM recently won the 30 year concession to operate electronic slot machines at the Aqueduct race course in Queens, New York. GENM paid ~US$ 380mn for the concession and expects to spend another US$ 320 350mn. It will receive an additional grant from NY State of US$ 250mn. Holding in Genting HK. GENM holds ~19% of Genting Hong Kong (formerly Star Cruises). Management indicated that they may consider selling their stake in GENHK for the right price. One possible option would be to distribute the shares to shareholders in specie (as was done with GENS). RWG Cannibalization from RWS. While management believes they are experiencing some cannibalization from Resorts World Sentosa, they do not believe this to be permanent trend, as the market is large enough for two destinations in South East Asia, in their view. They have seen some impact on mass market arrivals, but this has been offset by improved VIP play. Occupancy rates remain strong at 92 95%. Management believes they may see a structural increase in their VIP to mass market ratio, as a result of RWS.

Genting Group Structure

Genting Berhad (GENT MK)

Plantations & Property

54.6% 49.1%

Leisure & Hospitality

52.0% 30.3% 58.6%

Energy

100%

95%

Genting Plantations (GENP MK)

Genting Malaysia (GENM MK)

19.3%

Genting Singapore (GENS SP)

11.0%

Landmarks Berhad (LMK MK)

Genting Sanyen Power Bhd

Genting Power China Ltd

Genting Oil & Gas Ltd

Genting Hong Kong (GENSHK MK / 678 HK)

Rank Group PLC (RNK LN)

Key:

Listed Subs Unlisted Subs

Source: Knight Research Asia, Genting Group Financial Statements

Genting Singapore (GENS SP). Genting Singapore (formerly Genting International) is primarily focused on developing the Resorts World Sentosa integrated resort in Singapore RWS. Resorts World Sentosas success has taken the market by surprise. Management believes that momentum can be maintained as the resort moves into full operation. This consists of ramping up from the current 380 tables to 500; 1,000 rooms to 1,350 rooms for full phase 1 (total of 1800 planned) and additional role out of attractions. Novelty Effect? Management acknowledged that it is difficult to gauge the steady state size of the Singapore market. They believe there may be some novelty effect but this will be offset by increasing attractions, further build out the two casinos and the introduction of junket operators to the Singapore market. Regulatory Concerns. Management discounted concerns about the Singapore government cracking down on the integrated resorts. With specific regard to the discontinuation of free busing services, they believe that it is not material to the success of RWS given the small size of Singapore. They also believe that they have a more family oriented product which should help mitigate social concerns, highlighting attractions such as Universal Studios. Future Projects. While management is still committed to executing RWS, GENT management noted that following the success of RWS, GENS is in a very strong position for bidding on other greenfield projects in Asia. Genting Plantations (GENP MK). Genting Plantations, formerly Asiatic Development, operates crude palm oil (CPO) plantations in Malaysia and Indonesia.

Knight Research Asia

Malaysian Plantation. The group has landbank of 66k ha. According to management, GENPs Malaysian operations is business as usual and is benefitting from the strong CPO price. Indonesia JV. The Indonesian JV has planted 25k ha out of its planned 67k ha plan. Free cash flow from the Malaysian business will be used to fund additional planting costs in Indonesia.

Holding Company Resorts World Genting Management Fee. The RWG management fee is a legacy of the fact that the concession for RWG was originally held by the parent company. While calculated at both the revenue and EBITDA lines, management indicated it is effectively a 7 8% fee on RWGs revenue. The current agreement goes up to 2030 and can be renewed for another 30 years. It provides a steady stream of income to GENT. Greenfield vs M&A. GENT management indicated that the Group is more likely to pursue greenfield gaming projects relative to M&A opportunities. This is based on the success of RWS as well as the Groups recent success in its JV in the Philippines. Discount. Management acknowledged that they are not an operating company and are working to benefit shareholders by cooperating with the subsidiaries to improve profitability and return earnings to the parent company. GENT believe that reduction in non-core assets and streamlining of the overall group structure should help to alleviate the discount. Dividend. No fixed dividend policy. GENTs board decides payout on a year by year basis. GENS Attractive Operations / Strong Momentum, but at a Price Trading at almost twice the valuation of Genting Malaysia, we believe that Genting Singapore appears to be overvalued. We are upbeat on the Singapore IR duopoly story, but believe the valuation may be too demanding at ~15x consensus 2011 EV / EBITDA. Genting Singapore Not Cheap!
Ticker 1928 HK Equity GENS SP Equity LVS US Equity MGM US Equity 1128 HK Equity WYNN US Equity 27 HK Equity MPEL US Equity CWN AU Equity 880 HK Equity ASCA US Equity GENM MK Equity GENT MK Equity Name SANDS CHINA LTD-REG S GENTING SINGAPORE PLC LAS VEGAS SANDS CORP MGM RESORTS INTERNATIONAL WYNN MACAU LTD WYNN RESORTS LTD GALAXY ENTERTAINMENT GROUP L MELCO CROWN ENTERTAINME-ADR CROWN LTD SJM HOLDINGS LTD AMERISTAR CASINOS INC GENTING MALAYSIA BHD GENTING BERHAD Average Median High Low Market Cap (US$ mn) 15,579 19,209 25,769 6,006 10,376 12,643 3,409 3,016 6,569 6,594 1,040 6,766 12,675 6,357 3,212 25,769 1,040 ADTV EV (US$ 3M (US$ mn) mn) 17,363 19,778 34,316 18,040 10,497 14,211 3,834 4,667 7,211 6,076 2,556 4,962 15,817 7,799 4,419 34,316 1,021 18 170 850 245 12 249 6 23 16 15 4 9 20 131 17 850 2 P/E 2010E 28.5 N/A 52.1 N/A 20.4 64.0 25.7 N/A 24.1 16.5 27.2 16.1 18.3 22.8 20.0 64.0 9.6 P/E 2011E 27.3 N/A 33.9 N/A 17.9 46.0 20.2 N/A 19.4 14.3 18.9 15.2 15.4 18.9 15.5 46.0 9.4 EV / EBITDA 2010E 16.1 19.4 18.3 19.1 15.1 14.4 17.3 12.6 11.3 10.2 8.1 8.1 8.3 11.6 10.8 19.4 6.4 EV / EBITDA 2011E 14.8 14.6 14.0 13.5 12.7 12.5 12.1 10.8 10.4 9.0 7.6 7.2 6.6 9.8 9.1 14.8 6.6 ROE 2010E 14% 15% 6% -34% 72% 6% 11% -1% 8% 31% 5% 12% 13% 29% 15% 171% -34% EBITDA Margin 2010E 27% 43% 28% 16% 25% 25% 10% 15% 28% 8% 27% 39% 41% 26% 27% 43% 8% 3M EBITDA EBITDA Net Debt Altman Change 2010E 2011E / Equity Z Score (US$ mn) (US$ mn) 2010E (%) 1,090 1,033 1,838 965 687 975 248 351 639 587 314 612 1,959 610 499 1,959 148 1,206 1,323 2,443 1,335 769 1,076 373 394 702 656 324 646 2,295 713 515 2,443 130 46% 22% 88% 404% 0% 37% 77% 61% 20% -43% 419% -49% -4% 61% 37% 419% -97% 2.6 2.0 1.2 0.5 4.3 2.1 2.5 0.4 4.1 3.7 1.1 4.1 2.3 4.0 2.6 12.6 0.4 30% 75% 69% 39% 22% 32% 57% 51% 11% 50% 21% 30% 42% 25% 21% 75% -5%

Source: Knight Research Asia, Bloomberg, 2010E & 2011E represent Bloomberg Consensus numbers

At current valuations, GENS has the 2nd highest market cap (and EV) of any global gaming stock after Las Vegas Sands (LVS US). We would also note that GENS is effectively a one property operator at this stage, which carries diversification risks. This contrasts with the other large casino companies which are primarily multi-property operators. While GENS will benefit from a duopoly market, an attractive property and a low tax rate, we believe the market may be overly discounting its future success. We believe that the both the novelty effect and regulatory risk may not be fully priced in. Given the initial success which Singapore has had, additional greenfield projects throughout the region cannot be counted out.

Knight Research Asia

Furthermore, given the stocks strong price action year to date, we believe it may be due for a correction. Following a swath of broker upgrades following 2Q results, we have begun to see some brokers downgrading their recommendations on the stock. We also believe that forward estimates may be overly extrapolating the 2Qs performance which benefited from limited roll out of the Marina Bay Sands and what appears to be a higher than normal hold rate. Genting Singapore Table Comps
Ticker GENS SP Equity WYNN US Equity 1128 HK Equity LVS US Equity 1928 HK Equity MGM US Equity GENM MK Equity MPEL US Equity 880 HK Equity Name GENTING SINGAPORE PLC WYNN RESORTS LTD WYNN MACAU LTD LAS VEGAS SANDS CORP SANDS CHINA LTD-REG S MGM RESORTS INTERNATIONAL GENTING MALAYSIA BHD MELCO CROWN ENTERTAINME-ADR SJM HOLDINGS LTD Market Cap (US$ mn) 19,209 12,643 10,376 25,769 15,579 6,006 6,766 3,016 6,594 EV (US$ mn) 19,778 14,211 10,497 34,316 17,363 18,040 4,962 4,667 6,076 EV / Table 39.6 25.2 23.5 21.1 15.4 10.9 9.9 7.3 3.4 Sales / EBITDA EBITDA / Net Inc / Net Inc / Sales / Table Table Table / Table Table Table (2010E) (2011E) (2010E) (2011E) (2010E) (2011E) 4.8 6.0 2.1 2.6 1.1 1.6 7.0 7.5 1.7 1.9 0.4 0.5 6.2 7.0 1.5 1.7 1.1 1.3 4.0 4.8 1.1 1.5 0.3 0.5 3.6 4.0 1.0 1.1 0.5 0.5 3.6 3.7 0.6 0.8 -0.5 -0.2 3.2 3.5 1.2 1.3 0.8 0.9 3.7 4.1 0.5 0.6 -0.1 0.0 4.0 4.3 0.3 0.4 0.2 0.3

Source: Knight Research Asia, Bloomberg, 2010E & 2011E represent Bloomberg Consensus numbers, Company Financials

GENS EV / Table Analysis We conducted a simple EV / Table analysis, comparing various listed gaming companys enterprise values relative to their total gambling tables. We then compared this to their respective US$ EBITDA / Table. As shown in the chart below, our universe shows a relatively consistent relationship between these two factors. Our regression analysis implies that GENS is overvalued on this basis. Interpolating GENS 2011E consensus EBITDA / Table upon our regression would imply 23% downside to its current valuation. We also note that GENTs other key subsidiary, Genting Malaysia (GENM MK), looks quite attractive on this basis.

EV / Table relative to EBITDA / Table 2011E

3.0
1928 HK Equity

EV / Table relative to Revenue / Table 2011E

8.0 7.5 7.0 6.5
1928 HK Equity GENS SP Equity LVS US Equity MGM US Equity 1128 HK Equity WYNN US Equity MPEL US Equity

2.5

GENS SP Equity LVS US Equity

EBITDA / Table

2.0 1.5 1.0 0.5 0.0 5 10 15 20 25 30 35 40 45 EV / Table

Sa;es / Table

MGM US Equity 1128 HK Equity WYNN US Equity MPEL US Equity 880 HK Equity GENM MK Equity GENS Regression Implied Regression

6.0 5.5 5.0 4.5 4.0 3.5 3.0 5 10 15 20 25 30 EV / Table 35 40 45

880 HK Equity GENM MK Equity GENS Regression Implied Regression

Source: Knight Asia Research, Bloomberg, Company Financials

Source: Knight Asia Research, Bloomberg, Company Financials

GENS High Retail Activity? The dramatic increase in GENS trading volume may also indicate a high amount of retail participation in GENS. Having averaged a daily trading volume of US$ ~40mn over the last 3 years, GENS has averaged US$ 240mn of turnover per day over the past 1 month, making it the most actively traded stock on the SGX. This has also coincided with increased volatility with the 90d realized vol currently at ~45%. To gauge retail and speculative activity in GENS, we compare its recent volume and price performance with LVS, a popular stock among US retail participants. See the below charts.

Knight Research Asia

We believe that the high valuation of GENS may be driven by excessive euphoria regarding the opening of RWS. This high level of volume and likely retail activity may temper over time and limit support for the stock at these valuations.

LVS US - Share Price Relative To Volume

160 140 120 1,000 900 800 700 600 500 400 300 200 100 0 Oct-06 Jul-07 Apr-08 Jan-09 US$ Value Traded (RHS) LVS US (LHS) Oct-09 Jul-10

GENS SP - Share Price Relative To Volume

2.5 2.0 200 180 160 140 120 100 1.0 0.5 0.0 Jan-06 Oct-06 Jul-07 Apr-08 Jan-09 US$ Value Traded (RHS) GENS SP (LHS) Oct-09 Jul-10 80 60 40 20 0

Share Price

Share Price

100 80 60 40 20 0 Jan-06

Value Traded (US$ mn)

1.5

Source: Knight Asia Research, Bloomberg

Source: Knight Asia Research, Bloomberg

GENT Management Fees Important Swing Factor to NAV Valuation A critical component to establishing a true NAV valuation for GENT is to attach a value to its management fee from Resorts World Genting. Historically, the stocks long-term performance has tracked the trend of the RWG fee, but has diverged strongly over the last year with the dramatic increase in the value of GENS.

GENT MK Relative to RWG Fees / Subsidiary Divs

12 10
Share Price (Rm)

GENT Market Cap to RWG Fees & Fees + Divs

80 70 60 50

8 6 4 2 0
Jan-00 Jan-01 Jan-04 Jan-05 Jan-06 Jan-09 Jan-10 Jan-98 Jan-99 Jan-02 Jan-03 Jan-07 Jan-08

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0

Rm mn

40 30 20 10 0

GENT Mcap to Mgmt Fees

GENT Mcap to Mgmt Fees + Sub Div

RW Genting Mgmt Fees

Sub Div Income

GENT MK Share Price

Source: Knight Asia Research, Bloomberg, Genting Financial Statements

Source: Knight Asia Research, Bloomberg, Genting Financial Statements

Our 28% discount and Rm 14.21 NAV is predicated upon a Rm 5bn value for the RWG management fees. We have conducted a simple DCF of the annualized 2010 fee, assuming a 0% growth rate and a discount rate of 10%. We acknowledge that DCF inputs are relatively subjective and show below a sensitivity table adjusting for a range of growth and discount rates for the RWG fee. We would note that: RWGs growth rate has been quite consistent at 9.7% CAGR over the last 10 years. We believe a 0% growth assumption is relatively conservative. It could be argued that the Singapore IRs could pose a long term threat to RWG, though we have seen no concrete indication of any such trend. Malaysian interest rates are relatively modest at ~4%. Given its strong cash flow, we believe that GENM should merit a relatively low credit spread. We believe that a 10% discount rate is relatively fair.

Value Traded (US$ mn)

Knight Research Asia

RWG Management Fees Value Sensitivity

WACC 5,085 5.0% 7.5% 10.0% 12.5% 15.0% -20.0% 2,279 2,056 1,893 1,767 1,668 -15.0% 2,943 2,571 2,306 2,109 1,957 -10.0% 3,960 3,337 2,904 2,590 2,354 Grow th -5.0% 0.0% 5,531 7,960 4,490 6,237 3,782 5,085 3,281 2,912 4,284 3,706 5.0% 11,697 8,880 7,022 5,749 4,846 10.0% 17,401 12,862 9,900 7,894 6,489 15.0% 26,024 18,817 14,154 11,026 8,858 20.0% 38,911 27,642 20,399 15,577 12,264

GENT Discount to NAV Sensitivity to RWG Fees

5.0% 7.5% 10.0% 12.5% 15.0% -20.0% -23.5% -23.1% -22.9% -22.7% -22.5% -15.0% -24.5% -23.9% -23.5% -23.2% -23.0% -10.0% -25.9% -25.0% -24.4% -23.9% -23.6% Grow th -5.0% 0.0% -28.1% -31.2% -26.7% -29.0% -25.7% -27.5% -25.0% -26.4% -24.4% -25.6% 5.0% -35.5% -32.3% -30.0% -28.4% -27.2% 10.0% -41.1% -36.7% -33.5% -31.1% -29.3% 15.0% -47.9% -42.3% -38.0% -34.7% -32.3% 20.0% -55.6% -49.0% -43.6% -39.4% -36.1% WACC

Source: Knight Asia Research

Source: Knight Asia Research

Highlights Relatively attractive discount of 28%, though moved off extreme levels Streamlined structure and disposal of non-core assets should be supportive of reducing the discount going forward Potential to be more optimistic on value of the RWG management fee valuation A long GENT / short GENS position can provide an interesting way to play GENS on the short side, by providing a partial hedge Concerns / Risks GENT has had a strong move over the past 3 months and we may see some profit taking on outright positions Given the recent restructuring of the group and significant changes in GENS business drivers, historic NAVs and trading relationships between the Group companies may not hold Any pull back in GENS could be followed by an equally as strong (if not stronger) move in GENT Extreme valuations of GENS / high retail interest may persist Cross currency and liquidity risks with GENT trading US$ 20mn / day relative to GENS US$ 175mn Upcoming Catalysts: Any news on the sale of E&P business Any news on the listing of the Power assets 3Q results for GENS SP and GENM MK Operational data from Marina Bay Sands, RWS key competitor Any regulatory action with regard to the Singapore casinos

Knight Research Asia

Knight Research Directory

Tim Daileader, CFA, Director of Research

Knight Research Asia

Capital Structure, Fundamental Event, Holding Company Quantitative Trading Strategies Accounting, Legal & Tax Will Stephens David Blennerhassett Reid Frasier Timothy Marrable, CFA wstephens@knight.com dblenner@knight.com rfrasier@knight.com tmarrable@knight.com +852 3987 5267 +852 3987 5281 +852 3987 5269 +852 3987 5280

U.S. Capital Structure/ Fixed Income

Transportation Airlines & Shipping Automotives / REITS/ Distressed financials Distressed / Reorg equities Electric Utilities / IPPs Emerging markets / Intl equities Energy / MLPs / Basic industries Financials/ Banking Food / Restaurants / Industrials Retail / Beverage / Consumer Strategy Fixed Income Telecom / Media / Cable Peter Sorkin Tim Daileader, CFA Rupa Venkatagiri Laura Rotter, CFA Terran Miller, CFA Christopher Recouso Vivek Pal William R. King Chuck Mounts Aqeel Merchant Rosemary Sisson Brian Yelvington Leah Pilla, CFA psorkin@knight.com tdaileader@knight.com rvenkatagiri@knight.com lrotter@knight.com tmiller@knight.com crecouso@knight.com vpal@knight.com wking@knight.com cmounts@knight.com amerchant@knight.com rsisson@knight.com byelvington@knight.com lpilla@knight.com +1 312.553.8317 +1 203.930.7271 +1 203.930.7280 +1 203.930.7277 +1 203.930.7274 +1 203.930.7272 +1 203.930.7275 +1 203.930.7326 +1 203.930.7279 +1 203.930.7273 +1 203.930.7278 +1 203.930.7281 +1 203.930.7276

Knight Strategic Research

Strategic Research Mark Lapolla, CFA James Patterson mlapolla@knight.com jpatterson@knight.com +1 404.736.2431 +1 404.736.2432

Knight Research Europe

European Research Ioan Smith ismith@knight.com +44(0)20 7997 2061

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Recipients in the U.S. are advised that as foreign research analysts, the Knight Capital Asia Limited research analysts are not registered or qualified as research analysts with FINRA and are not subject to FINRA Rule 2711 restrictions on communications with companies that are the subject of the Research, public appearances and trading securities by a research analyst. Investing in non-U.S. securities, including ADRs, may entail certain risks for U.S. investors. The securities of non-U.S. issuers may not be registered with, nor be subject to, the reporting requirements of the U.S Securities and Exchange Commission. There may be limited information available on foreign securities. In general, foreign companies are not subject to uniform audit and reporting standards, practices and requirements comparable to those of U.S. companies. In addition, exchange rate movements may have an adverse effect on the value of an investment in a foreign stock and its corresponding dividend payment for U.S. investors. Net dividends to ADR investors are estimated, using withholding tax rate conventions, deemed accurate, but investors are urged to consult their tax advisor for exact dividend computations. Investors who have received this report from Knight may be prohibited in certain states or other jurisdictions from purchasing securities mentioned in this report from Knight. SELECTED COMPANIES DISCLOSURE For selected companies, Knight research analysts may identify shorter-term trading opportunities that are either consistent or inconsistent with Knights existing longer term recommendations. This information is made solely available to Knight clients. Knight may trade for its own account as a result of the short term trading opportunities seen by analysts and may also engage in securities transactions in a manner inconsistent with this research publication and with respect to securities covered by this publication, will sell to or buy from customers on a principal basis. Disclosures of conflicts of interest, if any, are discussed in the company specific disclosures section or on the Knight website. 2010 Knight Capital Asia Limited. All rights reserved

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