Malaysia Company Guide

BIMB Holdings
Version 7 | Bloomberg: BIMB MK | Reuters: BIMB.KL Refer to important disclosures at the end of this report

DBS Group Research . Equity 28 Feb 2017

BUY Backed by solid fundamentals

Last Traded Price ( 27 Feb 2017): RM4.50 (KLCI : 1,693.84)
Price Target 12-mth : RM5.00 (11% upside) Backed by solid fundamentals, BUY. BIMB has an arsenal of
tools to lean on to weather the current soft operating
Potential Catalyst: Positive turn in consumer sentiments
environment. The bank has a niche in Islamic banking (which
Where we differ: Our valuation is higher than consensus as we believe
supports financing growth momentum), high CASA ratio and
its solid fundamentals deserves a higher premium liquid balance sheet (to stave off NIM compression) as well as
high financing loss coverage (to buffer against potential
Analyst
deterioration in asset quality). We believe the market is not
Lynette CHENG +60 32604 3907 lynettecheng@alliancedbs.com
Sue Lin LIM +65 8332 6843 suelinlim@dbs.com assigning sufficient premium for a franchise delivering ROEs of
c.15% and better-than-industry metrics.
What’s New In-line 4Q/FY16 earnings, y-o-y earnings growth led by strong
revenues. Despite a slight dip in NIM, net fund-based income
 In-line earnings; topline led by resilient financing growth was healthy, underpinned by strong financing growth
growth (14% y-o-y; led by house financing). Together, deposit and
 Further improvement in asset quality; impaired investment accounts grew at 12% y-o-y. Inclusive of investment
financing ratio dip below the 1% mark accounts, financing-to-deposit ratio ended the year at 80%.
 Cautious targets for FY17F; financing growth of Non-fund based income continues to be driven by contributions
8% and relatively similar deposit growth from Syarikat Takaful. Expenses were well contained, keeping its
 Maintain BUY with unchanged TP of RM5.00 cost-to-income ratio at c.55%. Credit cost declined in 4Q, as
impaired financing slid by 6% q-o-q but rose a mere 2% y-o-y.
Impaired financing ratio was reduced to less than 1%, while
Price Relative
financing loss coverage stayed high at 175%.
Growing cautiously in FY17. BIMB is keeping defences up in
2017, with a financing growth target of 8%. This remains
higher than conventional loan growth, which we expect to
reach 5%, at best. Deposit (including investment accounts) is
also expected to grow at a similar pace, i.e. 7-8%. BIMB hopes
to contain NIM compression at less than 5bps and increase in
charge-off by a few bps in the coming year. We adjusted our
assumptions accordingly, which resulted in minimal changes in
earnings (<2%). The impact of lower financing growth
assumption (from 12% to 8%) was negated by lower charge-off
rates (from 31/39bps to 25bps each) and impaired financing
Forecasts and Valuation
FY Dec (RMm) 2016A 2017F 2018F 2019F ratio assumption (from 1.05% to 1.0% across FY17-18F).
Pre-prov. Profit 1,071 1,186 1,304 1,442 Valuation:
Net Profit 559 622 686 762 Our RM5.00 TP is derived from the Gordon Growth Model
Net Pft (Pre Ex.) 559 622 686 762 (assuming 15% ROE, 4% long-term growth and 10% cost of
Net Pft Gth (Pre-ex) (%) 2.1 11.3 10.2 11.1 equity) and implies 1.9x FY17F BV. We believe its current
EPS (sen) 35.7 38.6 41.3 44.5 valuation presents a good opportunity to gain an inexpensive
EPS Pre Ex. (sen) 35.7 38.6 41.3 44.5
entry into a solid Islamic banking franchise.
EPS Gth Pre Ex (%) (1) 8 7 8
Diluted EPS (sen) 35.2 38.0 40.7 43.9 Key Risks to Our View:
PE Pre Ex. (X) 12.6 11.7 10.9 10.1 Asset-quality deterioration amid challenging operating
Net DPS (sen) 12.2 13.2 14.1 15.2 environment could result in higher-than-expected provisions.
Div Yield (%) 2.7 2.9 3.1 3.4 At A Glance
ROAE Pre Ex. (%) 15.3 15.1 15.0 14.9 Issued Capital (m shrs) 1,638
ROAE (%) 15.3 15.1 15.0 14.9 Mkt. Cap (RMm/US$m) 7,370 / 1,660
ROA (%) 1.0 1.1 1.1 1.1 Major Shareholders (%)
BV Per Share (sen) 244 265 287 310
Tabung Haji (%) 50.8
P/Book Value (x) 1.8 1.7 1.6 1.5
EPF (%) 12.4
Earnings Rev (%): (2) (1) N/A KWAP (%) 5.5
Consensus EPS (sen): 38.0 41.0 N/A
Free Float (%) 21.1
Other Broker Recs: B: 5 S: 0 H: 4
3m Avg. Daily Val (US$m) 0.92
Source of all data on this page: Company, AllianceDBS, Bloomberg
ICB Industry : Financials / Banks
Finance L.P.

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ed: CK / sa: BC, PY
Company Guide
BIMB Holdings

WHAT’S NEW
Topline led by resilient financing growth

Highlights Outlook

4Q/FY16 earnings within expectations, full-year earnings Growing cautiously in FY17. BIMB is keeping defences up in
driven by strong revenues. Despite a slight dip in NIM, robust 2017, with a financing growth target of 8%. This remains
growth in net fund-based income was attributable to the higher than conventional loan growth, which we expect to
resilient financing growth (+5% q-o-q/ +14% y-o-y). Stronger reach 5%, at best. Deposit (including investment accounts) is
growth in corporate financing led to lower yields, causing also expected to grow at a similar pace, i.e. 7-8%. BIMB hopes
slight pressure on NIMs. Cost-to-income ratio was largely to contain NIM compression at less than 5bps and increase in
stable, hovering around the mid-50% level. On a q-o-q basis, charge-off by a few bps in the coming year. In our view, the
earnings were lower due to a decline in non-fund based cautious stance taken by BIMB is warranted, given the
income, as the previous quarter enjoyed higher gains in challenging operating environment. We believe the selective
investment securities. growth strategy by the bank will bode well in safeguarding
asset quality. Nonetheless, we would not discount possibility of
Ending the year with a robust financing growth of 14%.
financing growth exceeding management guidance, as we
Corporate financing gained traction in 4Q16 with a growth
understand that BIMB continues to see healthy demand for
of 11% q-o-q/17% y-o-y, but corporate financing remained a
financing.
smaller segment within BIMB (at 13% of gross financing).
Overall financing growth is still underpinned by its consumer
Minimal adjustment to earnings. We adjusted our assumptions
financing (73% of gross financing), namely house (5% q-o-
according to management guidance, which resulted in minimal
q/21% y-o-y) and personal financing (6% q-o-q/15% y-o-y).
changes in earnings (<2%). The impact of lower financing
Deposit growth stood at +11% q-o-q/+6% y-o-y, led by fixed
growth assumption (from 12% to 8%) was negated by lower
deposits (+13% q-o-q/+15% y-o-y). Investment accounts
charge-off rates (from 31/39bps to 25 each) and impaired
grew by close to RM3bn y-o-y. Including investment
financing ratio assumption (from 1.05% to 1.0% across FY17-
accounts, financing to deposit ratio was largely unchanged y-
18F).
o-y, at 80%. Liquidity coverage ratio stood at 125%, widely
exceeding the 70% minimum for 2016.
Valuation and recommendation
Asset quality improves; impaired financing ratio of <1%.
Maintain BUY with TP of RM5.00. Our TP implies 1.9x BV,
Credit cost declined in 4Q, as impaired financing slid by 6%
which we believe is fair for a franchise delivering ROEs of
q-o-q but rose a mere 2% y-o-y. Full-year credit cost stood at
around 15% and better-than-industry metrics. A restructuring
23bps, while impaired financing ratio was lowered to 0.98%,
exercise to collapse the financial holding structure of BIMB
and financing loss coverage stayed high at 175%. Oil and gas
could be on the cards to remove double leverage ratio
exposure stood at 9% (8% consumer; 1% corporate and
concerns. In a report issued in Dec, we expressed preference
commercial), with an impaired financing ratio of 1.6%
towards keeping STMB under Bank Islam as it provides better
(predominantly from corporate and commercial segments).
potential gains. For the full analysis, please refer to the report
BIMB remains well capitalised, with CET1/Tier-1/Total Capital
via this link.
ratio of 12.4/12.4/15.5%.

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 Company Guide
BIMB Holdings

Quarterly / Interim Income Statement (RMm)

FY Dec 4Q2015 3Q2016 4Q2016 % chg yoy % chg qoq FY15 FY16 % chg yoy

Fund-based Income 336 357 364 8.1 1.7 1,320 1,427 8.1
Non-fund based Income 277 252 206 (25.5) (18.2) 947 993 6.4
Operating Income 613 610 570 (7.1) (6.5) 2,267 2,420 7.4
Operating Expenses (367) (332) (336) (8.5) 1.1 (1,275) (1,348) 4.4
Pre-Provision Profit 246 277 234 (4.9) (15.6) 992 1,071 11.1
Provisions (23.2) (22.2) (4.4) (81.1) (80.3) (74) (92) 17.4
Associates (22.8) (28.3) (25.8) (13.1) 8.8 (83) (111) 10.0
Exceptionals 0.0 0.0 0.0 nm nm - -
Pretax Profit 200 227 204 1.9 (10.1) 834 869 10.6
Taxation (22.0) (68.6) (48.5) 120.3 (29.3) (221) (240) 10.3
Minority Interests (16.4) (17.7) (16.1) 1.7 (9.1) (66) (71) 8.9
Net Profit 162 141 139 (13.8) (0.8) 547 559 10.9

Growth (%)
Net fund-based income (0.1) (1.0) 1.7 3.1 8.1
Gth
Net Profit Gth 35.1 (2.2) (0.8) 2.8 2.1

Key ratio (%)

NFM 2.6 2.6 2.5 2.50 2.45
Impaired financing ratio 1.1 1.1 1.0 1.09 0.98
Financing-to-deposit 79.5 90.4 86.1 79.8 81.3
Cost-to-income 59.9 54.5 58.9 56.3 55.7
Total CAR 15.2 15.1 15.5 15.3 15.5
Source of all data: Company, AllianceDBS

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Company Guide
BIMB Holdings

Margin Trends
RM m
CRITICAL DATA POINTS TO WATCH
2,000 2.55%
1,800
1,600 2.50%
Earnings Drivers:
1,400 2.45%
NFM to remain under pressure, although we expect the 1,200
quantum to be less compared to the year before, as the 1,000 2.40%
800
intensity of deposit competition has lessened. Positively, BIMB’s 600 2.35%
high CASA ratio could slightly ease the pressure on net income 400 2.30%
200
margin (NIM). BIMB’s CASA ratio is currently at the low-30% 0 2.25%
range and the bank intends to maintain it at this level. 2015A 2016A 2017F 2018F 2019F
Fund based income (LHS) Net income margin (RHS)
Selective growth in financing. BIMB is guiding for a lower Gross Financing & Growth
financing growth of 8%, which reflects its defensive strategy RM m
going into FY17. We have imputed this in our forecast, 55,000 20%
50,000
however, we would not discount possibility of financing growth 45,000
15%
exceeding management guidance, as we understand that BIMB 40,000
35,000
continues to see healthy demand for financing. Targeted areas 30,000
10%
of growth include the affordable housing segment for its retail 25,000
20,000
segment, while on the corporate segment BIMB favours the 15,000 5%
10,000
infrastructure sector. 5,000
- 0%
2015A 2016A 2017F 2018F 2019F
Deposit growth expected to trail close to financing growth.
Gross Financing (LHS) Gross Financing y-o-y Growth (RHS)
Management expects deposit (including investment accounts)
growth to range around 6% to 7%. Investment accounts are Customer Deposit & Growth
specific to Islamic banks, and differ from the typical Islamic
deposit accounts mainly on the type of Shariah contract
involved as well as the absence of principal guarantee and
deposit insurance. The introduction of investment accounts
stemmed from the central bank’s initiative to distinguish Islamic
deposits and Islamic investment accounts.

Owns 60% of STMB, a key Takaful player. Syarikat Takaful

Malaysia Berhad (STMB) provides insurance protection based on
Shariah principles. Its main distribution channel is its agency
force which currently boasts 2,700 agents. Contribution from Financing-to-Deposit Ratio Trend
STMB makes up close to 70% of BIMB’s non-fund based RM m
income. 65,000 90%
60,000
55,000
50,000
Stable cost-to-income ratio. BIMB expects it to keep its cost to 45,000
40,000
income ratio at mid-50%. Management hopes to keep increase 35,000
30,000 80%
in charge-off rates to within a few bps. We have assumed 25,000
charge-off rates to not exceed 30bps in the forecast years 20,000
15,000
ahead (FY16: 23bps). 10,000
5,000
- 70%
2015A 2016A 2017F 2018F 2019F
At the forefront of Islamic finance. As the pioneer of Islamic
Financing (LHS) Deposit (LHS) Financing to deposit ratio (RHS)
banking in Malaysia, BIMB is poised to leverage on the deep
growth potential of Islamic finance due to the large Muslim Cost & Income Structure
population within the region. On top of opportunities arising RM m
3,500 58%
from the Malaysian government’s initiatives to develop Islamic
3,000
banking, another potential growth area for BIMB lies with 56%
2,500
Indonesia as it is the world's most populous Muslim nation. 54%
2,000
Although BIMB has expressed interest in making its mark in
1,500 52%
Indonesia, nothing substantial has materialised yet.
1,000
50%
500
0 48%
2015A 2016A 2017F 2018F 2019F
Fund based income (LHS) Non-fund based income (LHS)
Cost-to-income ratio (RHS)
Source: Company, AllianceDBS

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 Company Guide
BIMB Holdings

Asset Quality
Balance Sheet: RM m
Stable asset quality. BIMB has improved its asset quality over the 1.20%
years, exemplified by the lowering of its gross impaired 1.00%
financing ratio to 1% from 13% back in 2009. Management 0.80%
aims to keep asset-quality deterioration at bay and maintain its 0.60%
gross impaired financing ratio within the current level. BIMB’s
0.40%
coverage ratio is high, at more than 170%.
0.20%

High capital ratio. Capital ratios are now robust, comfortably 0.00%
2015A 2016A 2017F 2018F 2019F
above the minimum required CET1 of 9.5% (inclusive of
Impaired financing ratio Provision charge-off rate
conservation and countercyclical buffers) by 2019 as per Basel III
requirements. To ensure sustainable levels of capital, BIMB Capitalisation (%)
rolled out its Dividend Reinvestment Plan in Aug 2014.
Separately, STMB’s capital ratio is well above the minimum
requirement of 130%.

Share Price Drivers:

Trading lower than mean P/BV multiples. BIMB is trading at 1.7x
FY17F BV, which is below the 5-year mean valuation of 2x. We
believe the market is not attributing sufficient premium to the
arsenal of tools that BIMB has built up to prevail in the current
tough operating environment. ROE (%)

Key Risks:
Softer consumer financing growth. Consumer financing make
up over 60% of BIMB’s financing portfolio, with the bulk
being personal and housing financing. Given the high
proportion of consumer financing, softer growth in this
segment would be unfavourable for BIMB.

Tightening measures by BNM. Although the growth in

household debt has moderated over the years, thanks to
responsible lending measures administered by BNM, household
debt-to-GDP ratio remains high at 89% in 2015. More Forward PE Band (x)
tightening measures could dampen the robust growth
momentum in the personal financing segment.

Asset-quality deterioration amid challenging operating

environment could result in higher-than-expected provisions.

Company Background
BIMB Holdings Berhad provides all aspects of Islamic banking
services and is the only listed Shariah-compliant bank in
Malaysia. Through its subsidiaries, the bank also underwrites
family and general Takaful (Islamic insurance) and provides PB Band (x)
stockbroking and other related services.

Source: Company, AllianceDBS

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Company Guide
BIMB Holdings

Key Assumptions
FY Dec 2015A 2016A 2017F 2018F 2019F

Gross Financing Growth 16.1 14.1 8.0 8.0 8.0

Customer Deposits Growth 7.7 12.0 8.0 8.0 8.0
Yld. On Earnings Assets 4.4 4.3 4.3 4.3 4.3
Avg Cost Of Funds 2.5 2.4 2.4 2.4 2.4

Income Statement (RMm)

FY Dec 2015A 2016A 2017F 2018F 2019F

Fund-based Income 1,320 1,427 1,531 1,630 1,739

Non-fund based Income 947 993 1,056 1,131 1,218
Operating Income 2,267 2,420 2,588 2,760 2,956
Operating Expenses (1,275) (1,348) (1,401) (1,457) (1,514)
Pre-provision Profit 992 1,071 1,186 1,304 1,442
Provisions (73.8) (91.8) (108) (115) (123)
Associates (83.4) (111) (122) (134) (147)
Exceptionals 0.0 0.0 0.0 0.0 0.0
Pre-tax Profit 834 869 957 1,055 1,172
Taxation (221) (240) (258) (285) (316)
Minority Interests (65.7) (70.6) (76.6) (84.4) (93.8)
Preference Dividend 0.0 0.0 0.0 0.0 0.0
Net Profit 547 559 622 686 762
Net Profit bef Except 547 559 622 686 762
Growth (%)
Net fund-based Income Gth 3.1 8.1 7.3 6.4 6.7
Net Profit Gth 2.8 2.1 11.3 10.2 11.1
Margins, Costs & Efficiency (%)
Spread 1.9 1.9 2.0 1.9 1.9
Net Income Margin 2.5 2.4 2.4 2.4 2.3
Cost-to-Income Ratio 56.3 55.7 54.2 52.8 51.2
Business Mix (%)
Net Fund. Inc / Opg Inc. 58.2 59.0 59.2 59.0 58.8
Non-fund. Inc / Opg inc. 28.4 28.3 28.0 27.8 27.6
Fee Inc / Opg Income 8.5 7.4 7.2 7.2 7.4
Oth Non-fund Inc/Opg Inc 4.9 5.3 5.6 5.9 6.2 Expect ROE to stay above
Profitability (%) 15% in FY17
ROAE Pre Ex. 17.2 15.3 15.1 15.0 14.9
ROAE 17.2 15.3 15.1 15.0 14.9
ROA Pre Ex. 1.1 1.0 1.1 1.1 1.1
ROA 1.1 1.0 1.1 1.1 1.1
Source: Company, AllianceDBS

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 Company Guide
BIMB Holdings

Quarterly / Interim Income Statement (RMm)

FY Dec 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016

Net fund-based Income 336 344 361 357 364

Non-fund based Income 277 270 264 252 206
Operating Income 613 615 625 610 570
Operating Expenses (367) (339) (341) (332) (336)
Pre-Provision Profit 246 276 284 277 234
Provisions (23.2) (34.9) (30.3) (22.2) (4.4)
Associates (22.8) (28.3) (28.2) (28.3) (25.8)
Exceptionals 0.0 0.0 0.0 0.0 0.0
Pretax Profit 200 213 226 227 204
Taxation (22.0) (59.1) (63.4) (68.6) (48.5)
Minority Interests (16.4) (18.2) (18.6) (17.7) (16.1)
Net Profit 162 135 144 141 139

Growth (%) Bottomline driven by strong

financing growth of 14% y-
Net fund-based Gth (0.1) 2.4 4.9 (1.0) 1.7 o-y
Net Profit Gth 35.1 (16.4) 6.3 (2.2) (0.8)

Balance Sheet (RMm)

FY Dec 2015A 2016A 2017F 2018F 2019F

Cash/Bank Balance 3,304 4,502 5,299 5,723 6,181

Government Securities 1,591 1,375 1,597 1,726 1,866
Inter Bank Assets 977 1,153 1,292 1,395 1,507
Total Net Financing & Advs. 34,295 39,189 42,330 45,731 49,409
Investment 15,110 15,164 15,545 16,383 17,271
Associates 0.0 0.0 0.0 0.0 0.0
Fixed Assets 461 431 440 449 458
Goodwill 56.2 44.0 0.0 0.0 0.0
Other Assets 718 648 668 688 708
Total Assets 57,364 63,145 67,828 72,772 78,097

Customer Deposits 43,795 49,066 52,991 57,230 61,809

Inter Bank Deposits 0.0 30.0 226 318 388
Debts/Borrowings 1,883 1,882 1,882 1,882 1,882
Others 1,402 1,312 1,275 1,241 1,207
Minorities 282 334 411 495 589
Shareholders' Funds 3,414 3,883 4,337 4,834 5,382
Total Liab& S/H’s Funds 57,364 63,145 67,828 72,772 78,097

Source: Company, AllianceDBS

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Company Guide
BIMB Holdings

Financial Stability Measures (%)

FY Dec 2015A 2016A 2017F 2018F 2019F

Balance Sheet Structure

Financing-to-Deposit Ratio 78.3 79.9 79.9 79.9 79.9
Net Loans / Total Assets 59.8 62.1 62.4 62.8 63.3
Healthy asset-quality
Investment / Total Assets 26.3 24.0 22.9 22.5 22.1 indicators with low
Cust . Dep./Int. Bear. Liab. 95.9 96.2 96.2 96.3 96.5 impaired financing
Interbank Dep / Int. Bear. 0.0 0.1 0.4 0.5 0.6 ratio and high
coverage ratio
Asset Quality
NPF / Total Gross financing 1.1 1.0 1.0 1.0 1.0
NPF / Total Assets 0.7 0.6 0.6 0.6 0.6
Loan Loss Reserve Coverage 174.6 175.4 170.0 167.0 163.0
Provision Charge-Off Rate 0.2 0.2 0.3 0.2 0.2
Capital Strength
Total CAR 15.3 15.5 15.1 14.8 14.8
Tier-1 CAR 12.1 12.4 11.9 11.5 11.5

Source: Company, AllianceDBS

Target Price & Ratings History

Source: AllianceDBS
Analyst: Lynette CHENG
Sue Lin LIM

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 Company Guide
BIMB Holdings

AllianceDBS recommendations are based an Absolute Total Return* Rating system, defined as follows:
STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame)
BUY (>15% total return over the next 12 months for small caps, >10% for large caps)
HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps)
FULLY VALUED (negative total return i.e. > -10% over the next 12 months)
SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)
Share price appreciation + dividends

Completed Date: 27 Feb 2017 23:14:09 (MYT)

Dissemination Date: 28 Feb 2017 08:00:28 (MYT)

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DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, does not have its own investment banking or research
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in the past twelve months and does not engage in market-making.

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 Company Guide
BIMB Holdings

ANALYST CERTIFICATION
The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the
companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her
compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in the report. The DBS Group has
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research reports. As of 28 Feb 2017, the analyst(s) and his/her spouse and/or relatives who are financially dependent on the analyst(s), do not hold
interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities). The research analyst(s)
responsible for this report operates as part of a separate and independent team to the investment banking function of the DBS Group and
procedures are in place to ensure that confidential information held by either the research or investment banking function is handled
appropriately.

COMPANY-SPECIFIC / REGULATORY DISCLOSURES

1. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates do not have a proprietary
position in the securities recommended in this report as of 31 Jan 2017.

Compensation for investment banking services:

2. DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a
manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further
information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document
should contact DBSVUSA exclusively.

Disclosure of previous investment recommendation produced:

3. DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates may have published other
investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12
months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by
DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12 months.

RESTRICTIONS ON DISTRIBUTION
General 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.

Australia This report is being distributed in Australia by DBS Bank Ltd. (“DBS”) or DBS Vickers Securities (Singapore) Pte Ltd (“DBSVS”),
both of which are exempted from the requirement to hold an Australian Financial Services Licence under the Corporation Act
2001 (“CA”) in respect of financial services provided to the recipients. Both DBS and DBSVS are regulated by the Monetary
Authority of Singapore under the laws of Singapore, which differ from Australian laws. Distribution of this report is intended
only for “wholesale investors” within the meaning of the CA.

Hong Kong This report is being distributed in Hong Kong by or on behalf of, and is attributable to DBS Vickers (Hong Kong) Limited
which is licensed and regulated by the Hong Kong Securities and Futures Commission and/or by DBS Bank (Hong Kong)
Limited which is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission. Where this
publication relates to a research report, unless otherwise stated in the research report(s), DBS Bank (Hong Kong) Limited is not
the issuer of the research report(s). This publication including any research report(s) is/are distributed on the express
understanding that, whilst the information contained within is believed to be reliable, the information has not been
independently verified by DBS Bank (Hong Kong) Limited. This report is intended for distribution in Hong Kong only to
professional investors (as defined in the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and any
rules promulgated thereunder.)

For any query regarding the materials herein, please contact Paul Yong (CE. No. ASE988) at equityresearch@dbs.com.

Indonesia This report is being distributed in Indonesia by PT DBS Vickers Sekuritas Indonesia.

Malaysia This report is distributed in Malaysia by AllianceDBS Research Sdn Bhd ("ADBSR"). Recipients of this report, received from
ADBSR are to contact the undersigned at 603-2604 3333 in respect of any matters arising from or in connection with this
report. In addition to the General Disclosure/Disclaimer found at the preceding page, recipients of this report are advised that
ADBSR (the preparer of this report), its holding company Alliance Investment Bank Berhad, their respective connected and
associated corporations, affiliates, their directors, officers, employees, agents and parties related or associated with any of
them may have positions in, and may effect transactions in the securities mentioned herein and may also perform or seek to
perform broking, investment banking/corporate advisory and other services for the subject companies. They may also have
received compensation and/or seek to obtain compensation for broking, investment banking/corporate advisory and other
services from the subject companies.

Wong Ming Tek, Executive Director, ADBSR

Singapore This report is distributed in Singapore by DBS Bank Ltd (Company Regn. No. 196800306E) or DBSVS (Company Regn No.

ASIAN INSIGHTS VICKERS SECURITIES

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 Company Guide
BIMB Holdings

198600294G), both of which are Exempt Financial Advisers as defined in the Financial Advisers Act and regulated by the
Monetary Authority of Singapore. DBS Bank Ltd and/or DBSVS, may distribute reports produced by its respective foreign
entities, affiliates or other foreign research houses pursuant to an arrangement under Regulation 32C of the Financial
Advisers Regulations. Where the report is distributed in Singapore to a person who is not an Accredited Investor, Expert
Investor or an Institutional Investor, DBS Bank Ltd accepts legal responsibility for the contents of the report to such persons
only to the extent required by law. Singapore recipients should contact DBS Bank Ltd at 6327 2288 for matters arising from,
or in connection with the report.

Thailand This report is being distributed in Thailand by DBS Vickers Securities (Thailand) Co Ltd. Research reports distributed are only
intended for institutional clients only and no other person may act upon it.

United Kingdom This report is produced by AllianceDBS Research Sdn Bhd which is regulated by the Securities Commission Malaysia.

This report is disseminated in the United Kingdom by DBS Vickers Securities (UK) Ltd, ("DBSVUK"). DBSVUK is authorised and
regulated by the Financial Conduct Authority in the United Kingdom.

In respect of the United Kingdom, this report is solely intended for the clients of DBSVUK, its respective connected and
associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any
form or by any means or (ii) redistributed without the prior written consent of DBSVUK. This communication is directed at
persons having professional experience in matters relating to investments. Any investment activity following from this
communication will only be engaged in with such persons. Persons who do not have professional experience in matters
relating to investments should not rely on this communication.

Dubai This research report is being distributed in The Dubai International Financial Centre (“DIFC”) by DBS Bank Ltd., (DIFC Branch)
having its office at PO Box 506538, 3rd Floor, Building 3, East Wing, Gate Precinct, Dubai International Financial Centre (DIFC),
Dubai, United Arab Emirates. DBS Bank Ltd., (DIFC Branch) is regulated by The Dubai Financial Services Authority. This
research report is intended only for professional clients (as defined in the DFSA rulebook) and no other person may act upon
it.

United States This report was prepared by AllianceDBS Research Sdn Bhd. DBSVUSA did not participate in its preparation. The research
analyst(s) named on this report are not registered as research analysts with FINRA and are not associated persons of
DBSVUSA. The research analyst(s) are not subject to FINRA Rule 2241 restrictions on analyst compensation, communications
with a subject company, public appearances and trading securities held by a research analyst. This report is being distributed
in the United States by DBSVUSA, which accepts responsibility for its contents. This report may only be distributed to Major
U.S. Institutional Investors (as defined in SEC Rule 15a-6) and to such other institutional investors and qualified persons as
DBSVUSA may authorize. Any U.S. person receiving this report who wishes to effect transactions in any securities referred to
herein should contact DBSVUSA directly and not its affiliate.

Other jurisdictions In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is intended only for qualified,
professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.

AllianceDBS Research Sdn Bhd

(128540 U)
19th Floor, Menara Multi-Purpose, Capital Square,
8 Jalan Munshi Abdullah 50100
Kuala Lumpur, Malaysia.
Tel.: +603 2604 3333 Fax: +603 2604 3921 email : general@alliancedbs.com

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