PP16832/01/2013 (031128)
Malaysia
Initiating Coverage
28 May 2013
Kimlun Corporation
Buy (new)
Rock Solid Fundamentals
Share price:
Target price:
MYR1.91
MYR2.50 (new)
Initiating with a BUY. We like Kimlun for its: (i) construction business
in the strong property market of Iskandar Malaysia; and (ii) precast
concrete manufacturing for MRT systems in the KV and Singapore,
where there are few investible building material stocks. We forecast
FY14/15 earnings step-ups of 18%/9%, backed by contributions from its
maiden property development project and a margin recovery at its
precast business. We initiate on Kimlun with a BUY and TP of MYR2.50
(10x FY14 PER).
Lee Yen Ling
lee.yl@maybank-ib.com
(603) 2297 8691
Description: A Johor-based construction company, backed
by a precast concrete manufacturing arm
Construction-cum-building material. Kimlun is a medium-sized
construction group which predominantly undertakes high-rise/landed
residential property jobs in Johor. It is also one of three key precast
concrete (i.e. tunnel lining, segmental box girder) suppliers in Malaysia
and Singapore. Construction and precast manufacturing accounted for
75% and 25% of gross profit respectively in FY12.
Ticker:
Shares Issued (m):
Market Cap (MYR m):
3-mth Avg Daily Turnover (USD m):
KLCI:
Free float (%):
KICB MK
240.5
459.3
0.44
1,767.13
40.7
Riding on Iskandar property strength. Kimlun is poised to benefit
from rising construction works from the tremendous public and private
investment flows into Iskandar Malaysia, especially with its
Industrialised Building System capability. YTD, the group has secured
at least MYR200m worth of construction jobs (FY12: MYR900m).
%
33.4
7.2
5.8
Direct MRT play. The expansion of the MRT networks in Malaysia and
Singapore provides Kimlun with long-term manufacturing earnings
visibility. The oligopolistic nature of the precast concrete industry
ensures superior gross margins (FY12: 24%) at Kimlun’s manufacturing
arm, much higher than margins in the crowded construction sector and
on par with those of the similarly oligopolistic cement industry.
(125.1)
1.15
0.5
Undemanding valuations. Kimlun’s outstanding order book stood at
MYR1.6b (1.8x FY12 total revenue) as at Dec 2012. Our FY13/14/15
EPS growth forecasts of 1%/18%9% are based on: (i) total job wins of
MYR870m/MYR920m/MYR1.2b in FY13/14/15; and (ii) higher
construction billings, maiden property earnings and margin recovery at
its precast business in FY14-15. At a forward PER of 8x, Kimlun is
cheap (vs. construction sector: 14x PER, cement sector: 23x).
Stock Information
Major Shareholders:
PHIN SDN BHD
TIN PANG
KHANG HAU PANG
Key Indicators
Net cash / (debt) (MYR m):
NTA/shr (MYR):
Net Gearing (x):
Historical Chart
2.0
KICB MK Equity
1.8
Kimlun – Summary Earnings Table
1.6
FYE Dec (MYR m)
Revenue
EBITDA
Recurring Net Profit
Recurring Basic EPS (sen)
EPS growth (%)
DPS (sen)
BVPS (MYR)
1.4
1.2
1.0
May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13
Performance:
52-week High/Low
Absolute (%)
Relative (%)
PER
EV/EBITDA (x)
Div Yield (%)
P/BV(x)
MYR2.03/MYR1.28
1-mth
3-mth
6-mth
1-yr
YTD
25.7
22.4
46.9
38.0
42.5
32.6
28.2
14.3
37.4
32.8
Net Gearing (%)
ROE (%)
ROA (%)
Consensus Net Profit (MYR m)
Source: Maybank KE
2014F
2015F
1,155.6
1,159.5
104.5
115.6
59.4
64.6
24.7
26.9
18.0
8.9
6.2
6.7
1.49
1.69
2011A
652.1
64.3
42.7
18.6
0.8
5.1
0.94
2012A
896.6
71.6
49.4
20.7
11.2
4.8
1.15
2013F
977.7
85.1
50.3
20.9
1.0
4.8
1.30
10.3
6.6
2.7
2.0
9.3
8.1
2.5
1.7
9.2
7.2
2.5
1.5
7.8
6.0
3.2
1.3
7.1
5.2
3.5
1.1
Cash
19.7
8.3
-
45.5
18.0
6.7
-
47.1
16.0
6.1
54.0
47.6
16.6
6.4
62.9
33.6
15.9
6.5
69.6
SEE APPENDIX I FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
Kimlun Corporation Berhad
Company background
Johor-based construction group. Kimlun Corporation Berhad
(Kimlun), based out of Johor Bahru, is a medium-sized construction
group which predominantly undertakes high-rise residential buildings
projects. It is also one of only three key precast concrete suppliers in
Malaysia and Singapore. Kimlun was established in 1977 and listed on
Bursa Malaysia in Jun 2010.
Two business segments:
(i) Construction: Kimlun primarily undertakes main contractor jobs for
the building of high-rise and landed residential properties for the
private sector in Johor. The construction division is Kimlun’s biggest
earnings contributor, accounted for 90% and 75% of group revenue
and gross profit respectively in FY12, with decent gross margins of
8%.
(ii) Manufacturing: Kimlun’s precast concrete products (i.e. tunnel
linings, segmental box girders) are manufactured at its two plants
(Johor and Sembilan) and mostly sold to external customers in
Malaysia and Singapore. In FY12, the manufacturing division
contributed 10% of the group’s total revenue and 25% of gross profit
on a high gross profit margin of 24%.
FY12: Revenue breakdown by segments (MYR867m)
Construction
90%
FY12: Gross profit breakdown by segments (MYR91m)
Manufacturing
: Precast
concrete
10%
Source: Company
Construction
75%
Manufacturing
: Precast
concrete
25%
Source: Company
Record high outstanding order book. Kimlun’s total outstanding
order book has grown by 2.5x to MYR1.6b (as at Dec 2012) since its
listing in Jun 2010, representing 1.8x of its FY12 billings. This was
achieved on record-high job wins at both its construction and
manufacturing divisions in 2012.
Breakdown of total outstanding order book (Dec 2012: MYR1.6b)
Construction
75%
Manufacturing
(precast
concrete)
25%
Source: Company
28 May 2013
Page 2 of 14
Kimlun Corporation Berhad
Construction: Numerous medium-sized jobs
Distinctive attributes. Unlike the big construction players (i.e.
Gamuda, IJM Corp), Kimlun’s jobs are generally: (i) medium-sized
property jobs worth less than MYR150m each, secured from wellestablished private property developers (i.e. SP Setia, IJM Land, Keck
Seng). This reduces the risk of uncollectable receivables; (ii) fast-track
jobs with an average turnaround time of 20 months, minimising the risk
of cost overruns cause by changes in building material prices; and (iii)
numerous jobs in hand (50-60 projects) at any point in time, reducing
the risk of over-reliance on any one particular job.
Order book at historical highs. Kimlun’s outstanding construction
order book stood at MYR1.2b as at Dec 2012, or 1.5x FY12
construction revenue. We estimate that Kimlun’s outstanding
construction order book has grown at a 2-year (FY11-12) CAGR of
29%, on the back of a high job replenishment rate in 2012 (+61% YoY).
Construction: Outstanding orderbook (MYR1.2b as at Dec
2012) heavily skewed towards private sector
Private
sector (e.g.
SP Setia,
IJM Land,
UM Land,
Keck Seng)
90%
Construction: Historical job wins (2012: +61% YoY)
MYR m
1000
900
800
700
600
500
400
300
200
100
0
Public
sector
10%
2012: +61% YoY
900
600
2007
Source: Company, Maybank KE
497
361
2008
2009
650
560
2010
2011
2012
Source: Company, Maybank KE
Construction: Notable ongoing projects
Award
date
Project
Location
Award value
(MYRm)
Client
Duration
(months)
Completion
May-12
Service aparment
Shah Alam, Selangor
148.5
Esquire Corner
28
Sep-14
n.a.
Mar-12
Service aparment
Plentong, Johor
128.3
IJM Land
n.a.
n.a.
Service aparment
Nusajaya, Johor
114.7
SP Setia
23
Feb-14
n.a.
Condominium
Mar-12
Service aparment
Plentong, Johor
96.7
UM Land
n.a.
n.a.
Johor Bahru, Johor
68.0
UM Land
33
Dec-14
Sep-10
Service aparment
Nusajaya, Johor
64.8
SP Setia
24
Sep-12
Aug-11
Dec-12
116 houses
Pulai, Johor
54.4
Tanah Sutera
24
Aug-13
244 houses
Tebrau, Johor
36.9
Keck Seng
18
n.a.
Roadwork (Resort - Second Link)
Sep-13
Gelang Patah, Johor
14.5
n.a.
n.a.
n.a.
Source: Company, Maybank KE
Minimal sub-contractor jobs. Besides the residential properties,
Kimlun also has a track record of being a sub-contractor to other
established construction players (i.e. WCT, MRCB) for other building
and infrastructure jobs in Johor. These jobs include shopping malls (i.e.
AEON, Carrefour), colleges (Marlborough), flyovers and bridges.
28 May 2013
Page 3 of 14
Kimlun Corporation Berhad
Strength in Industrial Building System (IBS). Kimlun also stands out
amongst the contractors in the property development sector for its
adoption of the IBS construction method since 2009. In contrast to the
conventional method, IBS is less labour intensive and has a faster
completion time owing to the usage of precast concrete (i.e. wall
panels, staircases). This benefits property developers, who often have
to catch the property upcycle. More importantly, the Malaysian
Government has mandated a higher IBS content for both public and
private jobs by 2015, in a bid to reduce the reliance on foreign labour.
In FY12, IBS jobs accounted for 20% of Kimlun’s construction revenue.
We see more IBS job opportunities for Kimlun going forward, given that
it is one of the very few full-fledged IBS contractors (from design,
manufacturing at its plants to building) in Malaysia.
Industrial Building System (IBS): Kimlun is a pioneer in Malaysia
According to the Construction Industry Development Board (CIDB)’s IBS Roadmap 2011-2015, the
content of IBS components in every new government project is to be increased to no less than 70%
with effect from 31st October 2008, save for certain exceptions. Meanwhile, the IBS content of private
sector projects will increase to 50% by 2015. CIDB plans to roll out its strategy beginning with the KL
City Hall, PJ City Council and Iskandar Regional Development Authority.
Besides government-funded projects such as public apartments, schools and government buildings,
the private sector has also begun to adopt Kimlun’s IBS to construct residential and commercial
buildings within housing projects. Among the government’s initiatives in pushing for more affordable
housing projects are “My First Home Scheme” and “PRIMA Home”.
Since Kimlun began using the IBS building construction method in 2009, it has secured IBS projects
with a total value of approximately MYR950m (as at Dec 2012).
Installing precast wall panel
Installing precast staircase
Source: Shutterstock
Source: Floorspan
Source: Company, Maybank KE
Rising number of non-Johor jobs. Since 2011, Kimlun has slowly
moved into the Klang Valley. It has secured a total of MYR78m worth of
housing jobs to date from repeat client Melati Ehsan. Though its nonJohor jobs account for a minimal of its construction order book, we see
tremendous opportunities for Kimlun to grow this segment as it rides on
its existing clients’ property projects in the Klang Valley.
Lower margins. Kimlun’s construction gross profit margin has fallen
over the years to 8% in FY12 (FY09-11: 11-12%) as it takes on more
high-rise apartment jobs. These jobs generate lower margins compared
to the construction of landed properties, as they require the
engagement of other specialised subcontractors (i.e. mechanical and
engineering, building of common facilities).
Opportunities abound. We believe Kimlun’s jobs in FY13-15 will come
from: (i) vast property development activity in Iskandar, propelled by
rising foreign investments, RAPID and the proposed Johor BahruSingapore Rapid Transit System (operational in 2018); and (ii)
nationwide convergence to the use of IBS by 2015.
28 May 2013
Page 4 of 14
Kimlun Corporation Berhad
Manufacturing: An oligopolistic industry
Oligopolistic structure. In Malaysia and Singapore, Kimlun is one of
three active precast concrete producers, along with MTD-ACPI (Non
Rated) and Singapore-based Hong Leong Asia (Non Rated). In
Singapore, Kimlun participates in most of the available tenders and
boasts a high hit rate of 70%. In Malaysia, it is the designated supplier
for package 1 of the KV MRT Line 1 (Sg Buloh-Kajang)’s two packages.
High margins. Given Kimlun’s bargaining power as one of the most
preferred precast concrete suppliers, its manufacturing division
generated high gross margins of 20-24% during FY10-12. This is on par
with margins at the similarly oligopolistic cement industry, but much
higher than those in the construction and steel industries.
Rising plant utilisation rates. In Johor, Kimlun has two factories
producing tunnel lining segments (utilisation rate: 90%) and is
converting its steel factory into another tunnel lining factory in order to
cater for the strong orders from Singapore. In Seremban, Kimlun has
started operating a new segmental box girder plant (at end-2012) and
tunnel lining segment plant (in May 2013). Overall utilisation at the
Seremban plant is around 50% at the moment, but will reach the
optimal rate as it ramps up after the trial run.
Manufacturing: Details of plants in Johor Bahru and Seremban
Capacity p.a. (in terms of sales)
Johor Bahru
MYR70-80m
Seremban
MYR100m
Estimated utilisation rate (%)
70% (overall)
- 90% (tunnel lining segment)
50% (overall)
Catering markets and key products
Singapore
- tunnel lining
- jacking pipes
Malaysia (Johor, Klang Valley)
- hollow core slabs
Malaysia (KV MRT)
- tunnel lining
- segmental box girder
Source: Company, Maybank KE
Record high outstanding order book. Kimlun achieved a record high
manufacturing outstanding order book of MYR400m as at Dec 2012
(+5.7x YoY), after it won the precast orders (segmental box girder and
tunnel lining) for the Sg Buloh-Kajang MRT line in 2012 (total value:
MYR272m). Its outstanding orderbook is also now more Malaysiacentric, with a Malaysia:Singapore split of 75:25 (10:90 in the past).
Manufacturing: Outstanding orderbook (MYR400m as at Dec
2012) is Malaysia-centric
Manufacturing: Historical replenishment rates (2012:
+5.7x YoY)
MYR m
350
2012: +5.7x YoY
300
250
Singapore
25%
200
Malaysia
75%
312
150
100
50
0
Source: Company, Maybank KE
28 May 2013
55
55
2010
2011
2012
Source: Company, Maybank KE
Page 5 of 14
Kimlun Corporation Berhad
Manufacturing: Ongoing sales order
Award
date
Project
Client
Award
value
(MYRm)
Duration
(months)
Completion
Malaysia
Feb-12
Segmental box girders for KV MRT
MRT Corporation S/B
223.2
40
Mar-15
Jun-12
Tunnel lining for KV MRT
MMC-Gamuda KVMRT S/B
48.5
24
Jun-14
Singapore
(i) MRT downtown line
-
Package C929A
Nishimastu Constrution, Japan
24.1
-
-
-
Package C923A
Shanghai Tunnel Engineering, China
27.9
-
-
-
Package C917 & C918
ALPINE Bau GmbH, Austsria
16.3
-
-
-
Package C935
Leighton-John Holland JV, Australia
10.6
-
-
(ii) NEWater
-
Infrastructure plan extension
Penta Ocean Construction, Japan
16.3
-
-
-
Precast jacking pipes
Swee Hong Engineering, Singapore
7.7
-
-
Source: Company, Maybank KE
Orders to normalise in FY13-14. We expect Kimlun’s new orders to
come off significantly in FY13-14 vs FY12, as huge orders from the KV
MRT Line 1 will not be repeated. We understand that the second of the
two packages for the KV MRT Line 1 will likely be given to another
supplier, as the MRT Corp seeks to manage its supplier risk.
For FY13-14, we expect that new orders at Kimlun’s manufacturing
division will be somewhere around its historical average of MYR55m
(FY10-11), underpinned by continuous demand from Singapore owing
to: (i) the expansion of the MRT network (the Singapore government
plans to double its rail network from 178km currently to around 360km
by 2030); (ii) the power cable tunnel project comprising two
underground cable tunnels with a total length of 35km (construction is
expected to complete by 2017; main contractors were appointed at end2012).
Another big jump in 2015? We believe Kimlun will see another big
jump in new orders in 2015, as the KV MRT Line 2 (Sg Buloh-Serdang)
is expected to see construction commencing in 2015 and ending in
2018.
Malayisa: Proposed Klang Valley MRT lines
Total length (km)
Underground
Elevated
Construction year
Line 1
Sg Buloh - Kajang
Line 2
Sg Buloh - Serdang
Line 3
Circle line
51
10
41
2012 - 2015
56
11
45
2015 - 2018
n.a.
n.a.
n.a.
2018 - 2021
Source: Gamuda, Maybank KE
Singapore: Proposed extension of MRT network
Existing
Total length (km)
178
---------------------------------- To be built ----------------------------------Thomson
Eastern
Jurong
Cross
Others
line
Region
Region
Island Line
Line
Line
30
21
20
50
61
Completion year
2019 - 2020
2020
Source: Land Transport Authority of Singapore, Maybank KE
28 May 2013
2025
2030
2014 - 2030
Page 6 of 14
Kimlun Corporation Berhad
Property: An earnings booster from 2014
Maiden property project. Kimlun’s maiden property development
project, 51%-owned Hyve Soho Suites, is situated in Cyberjaya’s
Central Business District (CBD) and has an estimated total GDV of
MYR240m. Out of the two towers planned, Tower A was launched in
Feb 2013 and has already secured a booking rate of 80% (SPA not
signed) to date, at an average ASP of MYR535psf. In view of the good
demand, the official launch of Tower B will likely take place in 2H13 at a
higher ASP of MYR570psf. As it is now at the earthworks stage, we
think billings will only commence in FY14 onwards.
Upcoming property developments. Other landbanks that will be
developed over the next few years include: (i) a 43-acre piece of land in
Nilai earmarked for industrial development (i.e. industrial buildings and
factories); and (ii) a 5-acre plot of land in North Medini, Iskandar, slated
for mixed development (serviced apartments, offices and retail space).
Property: Details of landbanks and planned projects
Location
Land
size
(acres)
5.0
Nilai, Seremban
42.7
North Medini, Iskandar
5.3
Cyberjaya, Selangor
Planned developments
Date
launched
Mixed developments (i.e. SOHO, offices)
Target
GDV
(MYR)
240
Kimlun's
interest
Jan 2013
51%
Industrial buildings and factories
n.a.
Pending
100%
Mixed developments (i.e. serviced apartment, offices, retail)
with permitted GFA of 926,688 sqft
n.a.
Pending
100%
Source: Company, Maybank KE
Earnings outlook
Construction: Flattish new wins. For the construction division, we
have assumed job wins of MYR800m/MYR850m/MYR900m for FY1315 respectively. At a job win rate of around MYR850m p.a., Kimlun’s
manpower is already stretched and management will be more selective
on jobs, preferring high-margin infrastructure jobs (+5ppts vs
construction of residential properties). YTD, Kimlun has secured
construction jobs worth MYR200m (or 25% of our assumed MYR800m
for FY13).
Manufacturing: Lower new orders. As for the manufacturing division,
we have assumed its new orders to come off significantly to MYR70m
p.a. during FY13-14 (FY12: estimated at MYR312m) as we do not
expect repeat orders from the KV MRT line 1. However, our new order
assumption of MYR300m in FY15 is based on our expectation of orders
from the KV MRT line 2 (construction to commence in 2015).
Kimlun: Maybank KE's assumptions
FYE Dec (MYR m)
2012A
2013F
2014F
2015F
1,211.7
870.0
920.0
1,200.0
Construction
900.0
800.0
850.0
900.0
Manufacturing
311.7
70.0
70.0
300.0
1,600.0
1,480.5
1,289.3
1,396.6
1,200.0
1,180.0
1,050.5
1,042.7
400.0
300.5
238.8
354.0
Total new wins
Total outstanding orderbook
Construction
Manufacturing
Source: Company, Maybank KE
28 May 2013
Page 7 of 14
Kimlun Corporation Berhad
Earnings step-up in FY14-15. We project a flattish net profit growth in
FY13 on a flattish EBIT margin of 7% owing to: (i) the sunk costs and
depreciation of its new plant at Seremban; and (ii) initial construction
cost at its Cyberjaya property project. As for FY14 and FY15, we expect
net profit step-up of 18% and 9% respectively, driven by: (i) billings from
its property development; and (ii) a better EBIT margin of 8% (+1.5ppts
from FY13).
Kimlun: Maybank KE’s net profit and gross profit margin forecasts
MYR m
70
Net profit (MYR m): LHS
EBIT margin (%): RHS
9.5%
9.0%
60
8.4%
50
40
8.0%
7.6%
7.2%
7.3%
7.5%
30
7.0%
20
6.5%
10
0
8.5%
49
50
59
65
2012A
2013F
2014F
2015F
6.0%
5.5%
Source: Company, Maybank KE
Decent dividend yield. We think FY13 net dividends will be capped at
4.8sen/shr (flattish YoY), as cash will be utilised for the expansion of
the manufacturing plant (purchase of machinery) and construction of its
maiden property projects. However, we project a higher dividend payout
of 25% in FY14-15 (FY12: 23%), translating into net dividend yield of
3.2% and 3.5% in FY14 and FY15 respectively.
Key risks. Key risks to our earnings forecasts include: (i) rising raw
material prices which will affect margins; (ii) an unexpected downturn in
the property markets in Johor and the Klang Valley; and (iii) a delay/
slowdown in infrastructure works, especially in the Klang Valley (i.e. KV
MRT) and Singapore (i.e. MRT, power cable tunnel).
Shareholders and management
50% family-owned, 17% institutions. Pang family, collectively holds
approximately 50% stake in Kimlun, while the institutional funds hold
another 17% (local: 13%, foreign: 4%). Hence, Kimlun’s free float is
approximately 33% of the total shareholding.
Founded by Mr Pang. Kimlun’s driving force is Mr Pang Tin @ Pang
Yon Tin (Executive Chairman, age: 66), who has more than 30 years of
experience in various industries (i.e. construction, quarrying,
manufacturing, property development, property investment and hotel
management). The other Pang family member holding the top
management role is Mr Pang Tin @ Pang Yon Tin’s son, Mr Pang
Khang Hau (Executive Director, age: 32).
Professionally-run. Today’s Kimlun is very much run by the
professionals with top management from various construction/finance
backgrounds, i.e. Mr Sim Tian Liang (CEO, age: 59), Mr Chin Lian Hing
(Executive Director, age: 49) and Ms Yam Tai Fong (CFO, age: 46).
28 May 2013
Page 8 of 14
Kimlun Corporation Berhad
Valuation
Target PER: 10x FY14. We peg Kimlun at 10x FY14 PER, higher than
its historical mean of 7x, as we think the stock deserves a higher
valuation for its exposure to: (i) the less cyclical property development
market in Iskandar Malaysia (vs government-led infrastructure projects);
and (ii) the oligopolistic precast concrete sector, where it should
command a scarcity premium valuation similar to that of the cement
sector. Consequently, we derive a TP of MYR2.50 for Kimlun,
representing an upside of 30%.
There are no direct comparables for Kimlun in Malaysia, except MTDACPI, which has a precast manufacturing business.
Kimlun: Historical rolling forward PER
x
11
10
9
+1 SD : 8.3x
8
Mean : 7.2x
7
6
-1 SD: 6.1x
5
4
Source: Bloomberg, Maybank KE
Construction Sector – Peer Valuation Summary
Stock
Rec
Shr px
27 May
Mkt cap
TP
PER (x)
PER (x)
PER (x)
P/B (x)
P/B (x)
ROE
(%)
ROE
(%)
Net
yield
(MYR)
(MYRm)
(MYR)
CY12A
CY13E
CY14E
CY12A
CY13E
CY12A
CY13E
CY13E
Construction
Gamuda
IJM Corp
WCT
Eversendai
HSL
Average
Buy
Buy
Buy
Buy
Buy
4.87
5.75
2.64
1.42
1.96
10,744.8
8,004.2
2,883.4
1,099.1
1,086.1
5.30
6.10
3.00
1.70
2.30
19.3
17.2
7.2
9.5
12.0
13.0
18.4
15.6
14.5
9.3
11.1
13.8
15.4
13.8
13.6
8.5
10.3
12.3
2.4
1.4
1.4
0.7
2.3
1.6
2.3
1.3
1.3
0.7
1.9
1.5
12.7
8.2
9.2
14.7
18.9
12.7
12.5
8.5
9.7
13.6
17.6
12.4
2.7
2.1
2.5
2.9
2.0
2.4
Cement
LMC
Tasek
Average
Buy
NR
10.98
16.00
9,329.7
1,938.3
9.60
NR
28.2
22.1
25.1
25.0
20.3
22.6
23.9
19.8
21.8
2.9
2.0
2.5
3.0
n.a.
3.0
10.6
9.9
10.3
12.0
9.0
10.5
4.0
3.8
3.9
81.1
459.3
NR
2.50
n.m.
9.2
n.a.
9.1
n.a.
7.7
0.5
1.7
n.a.
1.5
n.m.
18.0
n.a.
16.0
n.a.
2.5
Construction-cum-Precast concrete
MTD ACPI
NR
0.35
Kimlun
Buy
1.91
Source: Maybank KE
28 May 2013
Page 9 of 14
Kimlun Corporation Berhad
INCOME STATEMENT (MYR m)
BALANCE SHEET (MYR m)
FY Dec
2012A
2013F
2014F
2015F
Revenue
EBITDA
Depreciation & Amortisation
Operating Profit (EBIT)
Interest (Exp)/Inc
Associates
One-offs
Pre-Tax Profit
Tax
Minority Interest
Net Profit
Recurring Net Profit
896.6
71.6
(6.7)
64.9
(5.1)
0.0
0.0
60.7
(11.3)
0.0
49.4
49.4
977.7
85.1
(14.1)
71.0
(8.0)
0.0
0.0
63.7
(13.4)
0.0
50.3
50.3
1,155.6
104.5
(16.4)
88.2
(8.6)
0.0
0.0
80.1
(16.8)
(3.9)
59.4
59.4
1,159.5
115.6
(18.4)
97.2
(8.6)
0.0
0.0
89.2
(18.7)
(5.9)
64.6
64.6
37.5
11.5
10.0
15.7
15.7
18.7
9.1
18.8
9.3
1.9
1.9
21.0
18.2
22.9
24.2
18.0
18.0
21.0
0.3
10.6
10.3
8.9
8.9
21.0
FY Dec
2012A
2013F
2014F
2015F
FY Dec
Profit before taxation
Depreciation
Net interest receipts/(payments)
Working capital change
Cash tax paid
Others (incl'd exceptional items)
Cash flow from operations
Capex
Disposal/(purchase)
Others
Cash flow from investing
Debt raised/(repaid)
Equity raised/(repaid)
Dividends (paid)
Interest payments
Others
Cash flow from financing
Change in cash
60.7
8.6
4.2
(111.0)
(17.2)
(1.3)
(56.0)
(75.7)
0.5
(0.4)
(75.6)
81.8
17.6
(7.5)
(4.2)
(0.4)
87.3
(44.3)
63.7
16.2
7.3
(35.4)
(13.4)
(2.1)
36.3
(40.0)
0.0
0.0
(40.0)
30.0
0.0
(11.5)
(7.3)
0.0
11.1
7.4
80.1
18.8
8.1
(57.5)
(16.8)
(2.5)
30.2
(30.0)
0.0
0.0
(30.0)
0.0
0.0
(14.8)
(8.1)
0.0
(22.9)
(22.7)
89.2
20.8
8.0
(8.8)
(18.7)
(2.5)
88.0
(30.0)
0.0
0.0
(30.0)
0.0
0.0
(16.2)
(8.0)
0.0
(24.2)
33.9
EBITDA Margin %
Op. Profit Margin %
Net Profit Margin %
ROE %
ROA %
Net Margin Ex. El %
Dividend Cover (x)
Interest Cover (x)
Asset Turnover (x)
Asset/Debt (x)
Debtors Turn (days)
Creditors Turn (days)
Inventory Turn (days)
Net Gearing %
Debt/ EBITDA (x)
Debt/ Market Cap (x)
Revenue Growth %
EBITDA Growth (%)
EBIT Growth (%)
Net Profit Growth (%)
Recurring Net Profit Growth (%)
Tax Rate %
CASH FLOW (MYR m)
FY Dec
2012A
2013F
2014F
2015F
Fixed Assets
Other LT Assets
Cash/ST Investments
Other Current Assets
Total Assets
128.6
0.1
44.7
559.7
733.1
152.4
0.1
52.2
623.0
827.7
163.6
0.1
29.4
739.4
932.6
172.8
0.1
63.3
751.9
988.1
ST Debt
Other Current Liabilities
LT Debt
Other LT Liabilities
Minority Interest
Shareholders' Equity
Total Liabilities-Capital
103.8
286.8
66.1
1.2
0.3
274.9
733.1
133.8
312.6
66.1
1.2
0.3
313.7
827.7
133.8
369.0
66.1
1.2
4.3
358.2
932.6
133.8
370.3
66.1
1.2
10.1
406.7
988.1
Share Capital (m)
Gross Debt/(Cash)
Net Debt/(Cash)
Working Capital
238.3
169.8
125.1
60.4
240.5
199.8
147.7
67.9
240.5
199.8
170.4
82.4
240.5
199.8
136.5
85.1
2012A
2013F
2014F
2015F
8.0
7.2
5.5
18.0
6.7
5.5
4.3
9.7
1.2
4.3
125.1
109.6
9.0
45.5
1.7
0.3
8.7
7.3
5.1
16.0
6.1
5.1
4.4
6.3
1.2
4.1
125.1
109.6
9.0
47.1
1.7
0.3
9.0
7.6
5.1
16.6
6.4
5.1
4.0
6.9
1.2
4.7
125.1
109.6
9.0
47.6
1.6
0.4
10.0
8.4
5.6
15.9
6.5
5.6
4.0
7.5
1.2
4.9
125.1
109.6
9.0
33.6
1.2
0.3
RATES & RATIOS
Source: Company, Maybank KE
28 May 2013
Page 10 of 14
Kimlun Corporation Berhad
RESEARCH OFFICES
REGIONAL
P K BASU
Regional Head, Research & Economics
(65) 6432 1821 pk.basu@maybank-ke.com.sg
WONG Chew Hann, CA
Acting Regional Head of Institutional Research
(603) 2297 8686 wchewh@maybank-ib.com
ONG Seng Yeow
Regional Products & Planning
(65) 6432 1453 ongsengyeow@maybank-ke.com.sg
MALAYSIA
WONG Chew Hann, CA Head of Research
(603) 2297 8686 wchewh@maybank-ib.com
 Strategy
 Construction & Infrastructure
Desmond CH’NG, ACA
(603) 2297 8680 desmond.chng@maybank-ib.com
 Banking - Regional
LIAW Thong Jung
(603) 2297 8688 tjliaw@maybank-ib.com
 Oil & Gas
 Automotive
 Shipping
ONG Chee Ting, CA
(603) 2297 8678 ct.ong@maybank-ib.com
 Plantations- Regional
Mohshin AZIZ
(603) 2297 8692 mohshin.aziz@maybank-ib.com
 Aviation
 Petrochem
YIN Shao Yang, CPA
(603) 2297 8916 samuel.y@maybank-ib.com
 Gaming – Regional
 Media
TAN CHI WEI, CFA
(603) 2297 8690 chiwei.t@maybank-ib.com
 Power
 Telcos
WONG Wei Sum, CFA
(603) 2297 8679 weisum@maybank-ib.com
 Property & REITs
LEE Yen Ling
(603) 2297 8691 lee.yl@maybank-ib.com
 Building Materials
 Manufacturing
 Technology
LEE Cheng Hooi Head of Retail
chenghooi.lee@maybank-ib.com
 Technicals
HONG KONG / CHINA
Todd MARTIN Head of Research
(852) 2268 0638 toddmartin@kimeng.com.hk
 Banking & Finance
Ivan CHEUNG, CFA
(852) 2268 0634 ivancheung@kimeng.com.hk
 HK Property
 Industrial
Jacqueline KO, CFA
(852) 2268 0633 jacquelineko@kimeng.com.hk
 Consumer
Andy POON
(852) 2268 0645 andypoon@kimeng.com.hk
 Telecom & equipment
Alex YEUNG
(852) 2268 0636 alexyeung@kimeng.com.hk
 Industrial
Karen KWAN
(852) 2268 0640 karenkwan@kimeng.com.hk
 China Property
Jeremy TAN
(852) 2268 0635 jeremytan@kimeng.com.hk
 Gaming
Warren LAU
(852) 2268 0644 warrenlau@kimeng.com.hk
 Technology – Regional
Lisa YANG
(852) 2268 0647 lisayang@kimeng.com.hk
 Technology – Regional
INDIA
Jigar SHAH Head of Research
(91) 22 6623 2601 jigar@maybank-ke.co.in
 Oil & Gas
 Automobile
 Cement
Anubhav GUPTA
(91) 22 6623 2605 anubhav@maybank-ke.co.in
 Metal & Mining
 Capital goods
 Property
Urmil SHAH
(91) 22 6623 2606 urmil@maybank-ke.co.in
 Technology
 Media
Varun VARMA
(91) 226623 2611 varun@maybank-ke.co.in
 Banking
28 May 2013
ECONOMICS
Suhaimi ILIAS
Chief Economist
 Singapore | Malaysia
(603) 2297 8682 suhaimi_ilias@maybank-ib.com
JUNIMAN
Chief Economist, BII
 Indonesia
(62) 21 29228888 ext 29682 Juniman@bankbii.com
Luz LORENZO
 Philippines
(63) 2 849 8836 luz_lorenzo@maybank-atrke.com
Tim LEELAHAPHAN
 Thailand
(662) 658 1420 tim.l@maybank-ke.co.th
Josua PARDEDE
Economist / Industry Analyst, BII
 Indonesia
(62) 21 29228888 ext 29695 JPardede@bankbii.com
SINGAPORE
Gregory YAP Head of Research
(65) 6432 1450 gyap@maybank-ke.com.sg
 Technology & Manufacturing
 Telcos - Regional
Wilson LIEW
(65) 6432 1454 wilsonliew@maybank-ke.com.sg
 Property & REITs
James KOH
(65) 6432 1431 jameskoh@maybank-ke.com.sg
 Logistics
 Resources
 Consumer
 Small & Mid Caps
YEAK Chee Keong, CFA
(65) 6432 1460 yeakcheekeong@maybank-ke.com.sg
 Offshore & Marine
Alison FOK
(65) 6432 1447 alisonfok@maybank-ke.com.sg
 Services
 S-chips
ONG Kian Lin
(65) 6432 1470 ongkianlin@maybank-ke.com.sg
 REITs / Property
Wei Bin
(65) 6432 1455 weibin@maybank-ke.com.sg
 S-chips
 Small & Mid Caps
INDONESIA
Katarina SETIAWAN Head of Research
(62) 21 2557 1125 katarina.setiawan@maybank-ke.co.id
 Consumer
 Strategy
 Telcos
Lucky ARIESANDI, CFA
(62) 21 2557 1127 lucky.ariesandi@maybank-ke.co.id
 Base metals
 Mining
 Oil & Gas
 Wholesale
Rahmi MARINA
(62) 21 2557 1128 rahmi.marina@maybank-ke.co.id
 Banking
 Multifinance
Pandu ANUGRAH
(62) 21 2557 1137 pandu.anugrah@maybank-ke.co.id
 Automotive
 Heavy equipment
 Plantation
 Toll road
Adi N. WICAKSONO
(62) 21 2557 1128 adi.wicaksono@maybank-ke.co.id
 Generalist
Anthony YUNUS
(62) 21 2557 1139 anthony.yunus@maybank-ke.co.id
 Cement
 Infrastructure
 Property
Arwani PRANADJAYA
(62) 21 2557 1129 arwani.pranadjaya@maybank-ke.co.id
 Technicals
PHILIPPINES
Luz LORENZO Head of Research
(63) 2 849 8836 luz_lorenzo@maybank-atrke.com
 Strategy
Laura DY-LIACCO
(63) 2 849 8840 laura_dyliacco@maybank-atrke.com
 Utilities
 Conglomerates
 Telcos
Lovell SARREAL
(63) 2 849 8841 lovell_sarreal@maybank-atrke.com
 Consumer
 Media
 Cement
Luz LORENZO / Mark RACE
(63) 2 849 8844 mark_race@maybank-atrke.com
 Conglomerates
 Property
 Ports/ Logistics
 Gaming
Katherine TAN
(63) 2 849 8843 kat_tan@maybank-atrke.com
 Banks
 Construction
Ramon ADVIENTO
(63) 2 849 8845 ramon_adviento@maybank-atrke.com
 Mining
THAILAND
Sukit UDOMSIRIKUL Head of Research
(66) 2658 6300 ext 5090
Sukit.u@maybank-ke.co.th
Maria LAPIZ Head of Institutional Research
Dir (66) 2257 0250 | (66) 2658 6300 ext 1399
Maria.L@maybank-ke.co.th
 Consumer/ Big Caps
Andrew STOTZ Strategist
(66) 2658 6300 ext 5091
Andrew@maybank-ke.co.th
Mayuree CHOWVIKRAN
(66) 2658 6300 ext 1440 mayuree.c@maybank-ke.co.th
 Strategy
Suttatip PEERASUB
(66) 2658 6300 ext 1430 suttatip.p@maybank-ke.co.th
 Media
 Commerce
Sutthichai KUMWORACHAI
(66) 2658 6300 ext 1400 sutthichai.k@maybank-ke.co.th
 Energy
 Petrochem
Termporn TANTIVIVAT
(66) 2658 6300 ext 1520 termporn.t@maybank-ke.co.th
 Property
Woraphon WIROONSRI
(66) 2658 6300 ext 1560 woraphon.w@maybank-ke.co.th
 Banking & Finance
Jaroonpan WATTANAWONG
(66) 2658 6300 ext 1404 jaroonpan.w@maybank-ke.co.th
 Transportation

Small cap.
Chatchai JINDARAT
(66) 2658 6300 ext 1401 chatchai.j@maybank-ke.co.th
 Electronics
Pongrat RATANATAVANANANDA
(66) 2658 6300 ext 1398 pongrat.R@maybank-ke.co.th
 Services/ Small Caps
VIETNAM
Michael KOKALARI, CFA Head of Research
(84) 838 38 66 47 michael.kokalari@maybank-kimeng.com.vn
 Strategy
Nguyen Thi Ngan Tuyen
(84) 844 55 58 88 x 8081 tuyen.nguyen@maybank-kimeng.com.vn
 Food and Beverage
 Oil and Gas
Ngo Bich Van
(84) 844 55 58 88 x 8084 van.ngo@maybank-kimeng.com.vn
 Banking
Trinh Thi Ngoc Diep
(84) 844 55 58 88 x 8242 diep.trinh@maybank-kimeng.com.vn
 Technology
 Utilities
 Construction
Dang Thi Kim Thoa
(84) 844 55 58 88 x 8083 thoa.dang@maybank-kimeng.com.vn
 Consumer
Nguyen Trung Hoa
+84 844 55 58 88 x 8088 hoa.nguyen@maybank-kimeng.com.vn
 Steel
 Sugar
 Resources
Page 11 of 14
Kimlun Corporation Berhad
APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES
DISCLAIMERS
This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an
offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that
each security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings.
Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related
information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns may be less than the original sum
invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not
take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors
should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or
recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank
Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of
this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees
(collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this
report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.
This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”,
“intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be
achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are
subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements.
Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any such
forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated
events.
MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from
time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit business
from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments
related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent permitted by law,
act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published. One or more directors,
officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report.
This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in
whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the
actions of third parties in this respect.
This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or
other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such
circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of
investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical
location of the person or entity receiving this report.
Malaysia
Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental
ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia
Securities Berhad in the equity analysis.
Singapore
This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank
KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact
Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor,
expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the
contents of this report, with such liability being limited to the extent (if any) as permitted by law.
Thailand
The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the
Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand
and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the
perspective of a third party. It is not an evaluation of operation and is not based on inside information.The survey result is as of the date appearing in the
Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. Maybank Kim Eng Securities (Thailand)
Public Company Limited (“MBKET”) does not confirm nor certify the accuracy of such survey result.
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET.
MBKET accepts no liability whatsoever for the actions of third parties in this respect.
US
This research report prepared by MKE is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the
Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US
(registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in
the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the
US. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You
should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant
legislation and regulations.
UK
This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial
Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial
Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any
responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as
constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.
28 May 2013
Page 12 of 14
Kimlun Corporation Berhad
DISCLOSURES
Legal Entities Disclosures
Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa
Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued
and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim
Eng Securities (“PTKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand:
MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and
Exchange Commission.Philippines:MATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities
and Exchange Commission. Vietnam: Kim Eng Vietnam Securities Company (“KEVS”) (License Number: 71/UBCK-GP) is licensed under the
StateSecuritiesCommission of Vietnam.Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim
Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay
Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1
Merchant Banker (Reg. No. INM 000011708) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK:
Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.
Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act
as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking
services, advisory and other services for or relating to those companies.
Singapore: As of 28 May 2013, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.
Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the
research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected
parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.
Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph
16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
As of 28 May 2013, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in
issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment
services in relation to the investment concerned or a related investment.
OTHERS
Analyst Certification of Independence
The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of
the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.
Reminder
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable
of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political
factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any
issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own
professional advisers as to the risks involved in making such a purchase.
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.
Definition of Ratings
Maybank Kim Eng Research uses the following rating system:
BUY
Total return is expected to be above 10% in the next 12 months (excluding dividends)
HOLD
SELL
Total return is expected to be between -10% to +10% in the next 12 months (excluding dividends)
Total return is expected to be below -10% in the next 12 months (excluding dividends)
Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only
applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings
as we do not actively follow developments in these companies.
Some common terms abbreviated in this report (where they appear):
Adex = Advertising Expenditure
BV = Book Value
CAGR = Compounded Annual Growth Rate
Capex = Capital Expenditure
CY = Calendar Year
DCF = Discounted Cashflow
DPS = Dividend Per Share
EBIT = Earnings Before Interest And Tax
EBITDA = EBIT, Depreciation And Amortisation
EPS = Earnings Per Share
EV = Enterprise Value
28 May 2013
FCF = Free Cashflow
FV = Fair Value
FY = Financial Year
FYE = Financial Year End
MoM = Month-On-Month
NAV = Net Asset Value
NTA = Net Tangible Asset
P = Price
P.A. = Per Annum
PAT = Profit After Tax
PBT = Profit Before Tax
PE = Price Earnings
PEG = PE Ratio To Growth
PER = PE Ratio
QoQ = Quarter-On-Quarter
ROA = Return On Asset
ROE = Return On Equity
ROSF = Return On Shareholders’ Funds
WACC = Weighted Average Cost Of Capital
YoY = Year-On-Year
YTD = Year-To-Date
Page 13 of 14
Kimlun Corporation Berhad

Malaysia
Maybank Investment Bank Berhad
(A Participating Organisation of
Bursa Malaysia Securities Berhad)
33rd Floor, Menara Maybank,
100 Jalan Tun Perak,
50050 Kuala Lumpur
Tel: (603) 2059 1888;
Fax: (603) 2078 4194
Stockbroking Business:
Level 8, Tower C, Dataran Maybank,
No.1, Jalan Maarof
59000 Kuala Lumpur
Tel: (603) 2297 8888
Fax: (603) 2282 5136

Singapore
Maybank Kim Eng Securities Pte Ltd
Maybank Kim Eng Research Pte Ltd
9 Temasek Boulevard
#39-00 Suntec Tower 2
Singapore 038989

Hong Kong
Kim Eng Securities (HK) Ltd
Level 30,
Three Pacific Place,
1 Queen’s Road East,
Hong Kong

Tel: (852) 2268 0800
Fax: (852) 2877 0104

Philippines
Maybank ATR Kim Eng Securities
Inc.
17/F, Tower One & Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, Philippines 1200

Tel: (63) 2 849 8888
Fax: (63) 2 848 5738
Thailand
Maybank Kim Eng Securities
(Thailand) Public Company
Limited
999/9 The Offices at Central World,
20th - 21st Floor,
Rama 1 Road Pathumwan,
Bangkok 10330, Thailand
Tel: (66) 2 658 6817 (sales)
Tel: (66) 2 658 6801 (research)

South Asia Sales Trading
Connie TAN
connie@maybank-ke.com.sg
Tel: (65) 6333 5775
US Toll Free: 1 866 406 7447

Maybank Kim Eng Securities
(London) Ltd
6/F, 20 St. Dunstan’s Hill
London EC3R 8HY, UK

Tel: (44) 20 7621 9298
Dealers’ Tel: (44) 20 7626 2828
Fax: (44) 20 7283 6674
Tel: (65) 6336 9090
Fax: (65) 6339 6003

London
Indonesia
PT Kim Eng Securities
Plaza Bapindo
Citibank Tower 17th Floor
Jl Jend. Sudirman Kav. 54-55
Jakarta 12190, Indonesia
Vietnam
In association with
Kim Eng Vietnam Securities
Company
1st Floor, 255 Tran Hung Dao St.
District 1
Ho Chi Minh City, Vietnam
Tel : (84) 838 38 66 36
Fax : (84) 838 38 66 39
Maybank Kim Eng Securities
USA Inc
777 Third Avenue, 21st Floor
New York, NY 10017, U.S.A.
Tel: (212) 688 8886
Fax: (212) 688 3500

Tel: (62) 21 2557 1188
Fax: (62) 21 2557 1189

New York
India
Kim Eng Securities India Pvt Ltd
2nd Floor, The International 16,
Maharishi Karve Road,
Churchgate Station,
Mumbai City - 400 020, India
Tel: (91).22.6623.2600
Fax: (91).22.6623.2604

Saudi Arabia
In association with
Anfaal Capital
Villa 47, Tujjar Jeddah
Prince Mohammed bin Abdulaziz
Street P.O. Box 126575
Jeddah 21352
Tel: (966) 2 6068686
Fax: (966) 26068787
North Asia Sales Trading
Eddie LAU
eddielau@kimeng.com.hk
Tel: (852) 2268 0800
US Toll Free: 1 866 598 2267
www.maybank-ke.com | www.kimengresearch.com.sg
28 May 2013
Page 14 of 14