Indonesia Company Guide
Bank Tabungan Negara Refer to important disclosures at the end of this report
Version 9 | Bloomberg: BBTN IJ | Reuters: BBTN.JK
DBS Group Research . Equity
27 Mar 2017
HOLD
Strong growth path in the price
Last Traded Price ( 24 Mar 2017): Rp2,320 (JCI : 5,567.10) Price Target 12-mth: Rp2,300 (1% downside) (Prev Rp2,100)
Strong growth prospects priced in, maintain HOLD. Bank Tabungan Negara (BBTN)’s share price rallied following betterthan-expected deliveries in FY16. Despite the good results, we see limited upside to BBTN’s re-rating as we believe the current high ROE may not be sustainable due to downside risk to net interest margin (NIM), which should come from 1) lower asset yield due to higher proportion of FLPP loans (Fasilitas Likuiditas Pembiayaan Perumahan / Subsidised Mortgage Liquidity Facility), and 2) risk of higher cost of funds stemming from a higher interest rate environment. We remain watchful on the development of the new FLPP scheme and BBTN’s exposure to infrastructure loans. Recent sanction by the Otoritas Jasa Keuangan (OJK) could pose operational risks if prolonged. Strong FY16 results. Bank Tabungan Negara (BBTN) reported 4Q16 earnings of Rp998bn (+58.7% y-o-y), bringing FY16 net profit to Rp2,619bn (+41.5% y-o-y). FY16 net profit was above our/consensus forecast by 20%/13% mainly on lower provisions and better-than-expected NIM. Ambitious targets in 2017. Management has maintained a positive view on its 2017 outlook, with loan growth targeted at 21-23%, driven by the one million government housing programme. This year BBTN can disburse its full Rp9.7tr budgeted FLPP loans (vs effectively only Rp4tr last year). Management is also confident that net profit can grow above 20% and ROE can stay elevated at 16%-18% this year. Recent OJK sanction may cause a temporary setback to operations. BBTN was sanctioned by OJK after a forgery case was found at one of its outlets. BBTN is not allowed to open new branches or open new deposit accounts at cash outlets until OJK decides that the bank’s internal control and operational risks have improved. A prolonged restriction could drag BBTN’s operations to gather deposits.
Potential Catalyst: Sustainable NIM and unchanged FLPP scheme Where we differ: We are more conservative on NIM Analyst Sue Lin LIM +65 8332 6843
[email protected] Benedictus Agung SWANDONO +6221 3003 4935
[email protected]
What’s New
We believe share price rally to date has factored in the good deliveries Stock unlikely to re-rate further due to downside risk on NIM Prefer to be more conservative despite the strong management guidance on FY17 outlook Maintain HOLD with higher TP of Rp2,300 after we impute lower risk free rate assumption
Price Relative Rp
Relative Index 210
2,356.0
190
2,156.0 1,956.0
170
1,756.0
150
1,556.0
130
1,356.0
110
1,156.0
90 70
956.0 756.0 Mar-13
Mar-14
Mar-15
Bank Tabungan Negara (LHS)
Forecasts and Valuation FY Dec (Rpbn) Pre-prov. Profit Net Profit Net Pft (Pre Ex.) Net Pft Gth (Pre-ex) (%) EPS (Rp) EPS Pre Ex. (Rp) EPS Gth Pre Ex (%) Diluted EPS (Rp) PE Pre Ex. (X) Net DPS (Rp) Div Yield (%) ROAE Pre Ex. (%) ROAE (%) ROA (%) BV Per Share (Rp) P/Book Value (x)
2016A 4,060 2,619 2,619 41.5 253 253 41 253 9.2 53.6 2.3 15.9 15.9 1.4 1,848 1.3
Earnings Rev (%): Consensus EPS (Rp): Other Broker Recs:
Mar-16
50 Mar-17
Relative JCI (RHS)
2017F 4,698 2,979 2,979 13.7 288 288 14 288 8.1 75.9 3.3 14.9 14.9 1.3 2,017 1.2
2018F 5,338 3,225 3,225 8.3 311 311 8 311 7.4 86.3 3.7 14.6 14.6 1.2 2,242 1.0
2019F 5,963 3,544 3,544 9.9 342 342 10 342 6.8 93.4 4.0 14.5 14.5 1.1 2,490 0.9
0 258 B: 24
0 302 S: 0
0 N/A H: 3
Source of all data on this page: Company, DBS Bank, DBSVI, Bloomberg Finance L.P.
ASIAN INSIGHTS ed: JS / sa: MA, PY
Valuation: Maintain HOLD, higher TP of Rp2,300. We derived a higher TP of Rp2,300 after we assuming a lower risk free rate of 8% (vs 8.5% previously). Our TP is based on the Gordon Growth Model (15% ROE, 10% growth and 14.7% cost of equity) implying 1.15x FY17 BV. Key Risks to Our View: Favourable FLPP scheme and sustained asset quality trends. Upside risk to our call would be favourable FLPP terms, timely mortgage subsidy disbursements, and sustained asset-quality trends particularly from non-subsidised mortgages. At A Glance Issued Capital (m shrs) Mkt. Cap (Rpbn/US$m) Major Shareholders (%) Government of Indonesia (%) Free Float (%) 3m Avg. Daily Val (US$m) ICB Industry : Financials / Financial Services
10,590 24,569 / 1,846 60.1 39.9 3.2
VICKERS SECURITIES
Company Guide Bank Tabungan Negara
WHAT’S NEW Will the strong deliveries continue? Highlights BBTN’s ROE is currently high, could it re-rate further? BBTN delivered a high 16% ROAE (return on average equity) in 2016. Management even shared its bullish guidance of 16%18% ROE with >20% net profit and equity growth for 2017. We highlighted that these levels are equal with the ROAE BBTN achieved back in 2011-2013. At that time, BBTN was trading at 1.5-1.6x trailing BV (vs 1.2x currently). However, we don’t expect BBTN to trade at those levels mainly because of NIM’s downside risk. Why we see downside risk from current NIM? We do not believe the current reported NIM of 4.98% will be sustainable because of the following reasons: 1.
2.
We expect lower asset yields this year. Our calculation suggests that loan yield was lower by 40bps y-o-y last year even with the help of one-time interest payment. A bigger portion of FLPP loans, the absence of the one-off items, and lagging impact of lower policy rate on nonsubsidised loans should lower the asset yield further. Risk of higher cost of funds stemming from potentially higher policy rate. Our economist expects one (25bps) policy rate hike this year on the back of external factor uncertainty and potentially higher inflation. With 50% of its deposit base comprising time deposits, we believe a higher policy rate should quickly translate into lower NIM.
How sensitive is NIM on profitability? Our sensitivity analysis suggests that every 10bps decrease in NIM would lower BBTN’s earnings by 5% and ROE by 60bps. The high sensitivity on earnings is mainly due to the low margin business that BBTN is currently running. Where could we go wrong? We believe management has done a tremendous job in improving asset quality in the past two years. However, we prefer to be conservative by expecting a stable asset quality trend going forward rather than expect further significant improvements. Better-thanexpected asset quality could help NIM and lower provisions, which could eventually translate into a higher bottom-line. In addition, a further policy rate cut, although unlikely, would help to continue lower cost of funds and help BBTN deliver better-than-expected NIM. Update on the FLPP scheme limbo; positive surprise is likely. Management has prudently indicated that it has not reached a final agreement with the government with regard to a new FLPP scheme. However, based on recent discussions with the government, it is guiding that risk of any changes to the scheme is small. A confirmation of an unchanged scheme will
ASIAN INSIGHTS Page 2
ease concerns over regulatory risk and should be positive for BBTN. New business propositions in the pipeline. BBTN has started a pilot project for micro housing loans, a segment deemed risker but if successful, could add to BBTN’s housing loan growth. The difference between this scheme and the FLPP is that this scheme will be self-funded (i.e. from its own deposits and bonds). The government is looking to set up a Housing Savings Plan (Tapera), a fund that employees could tap on in future to purchase subsidised housing. In addition, BBTN has also submitted a proposal to acquire Danareksa Finance and Danareksa Asset Management. The former will allow BBTN to tap into the micro housing loans it intends to initiate while the latter could allow BBTN to take advantage of Tapera funds which it could help manage with an asset management licence (a potential fee income generator). These initiatives are not included in our forecasts. Recent OJK sanction may cause a temporary setback to operations. BBTN was sanctioned by OJK after a forgery case was found at one of its outlets. BBTN is not allowed to open new branches or open new deposit accounts at cash outlets until OJK decides that the bank’s internal control and operational risks have improved. In the meantime, BBTN will carry out new account opening activities at branch and subbranch offices. A prolonged restriction could drag BBTN’s operations to gather deposits. BBTN has completed an action plan to improve business processes in customer deposit management. The action plan is expected to be implemented by 1 April and will be evaluated at the end of 1H17. Watchful at its participation in infrastructure sector. We noted an uptick in the commercial segment in 4Q16 – a segment that was a culprit of high non-performing loans (NPLs) a few years ago. However, this time we are less worried as we see loans as more of a symbolic participation to support government infra projects rather than an intended expansion in that sector. Over-expansion in this segment could be negative for BBTN. Optimistic management targets. Overall, management is targeting 21-23% loan growth, driven by the strong disbursement of FLPP loans, while deposits are expected to grow at a slightly faster rate of 22%-24%. Management indicated that it can raise up to Rp14tr from bond issuance, negotiable certificates of deposits (NCD), bilateral lending (from ICBC and other SOE banks), and asset securitisation. NIM guidance is loose at 4.5%-5%. NPL is targeted at below 2.5%. Overall, management is confident of delivering 16%18% ROE for FY17. Our FY17F earnings are raised to reflect
VICKERS SECURITIES
Company Guide Bank Tabungan Negara
lower credit costs, while FY18F earnings are trimmed on lower NIM expectations. Valuation and recommendation:
sustained low government bond yield. Our TP is based on the Gordon Growth Model (15% ROE, 10% growth and 14.7% cost of equity) implying 1.15x FY17 BV.
Maintain HOLD, TP raised to Rp2,300. We maintain HOLD with a higher target price of Rp2,300 after we impute lower risk free rate assumption of 8% (vs 8.5% previously) following
ASIAN INSIGHTS
VICKERS SECURITIES Page 3
Company Guide Bank Tabungan Negara Margin Trends
CRITICAL DATA POINTS TO WATCH
Rp bn
12,000
5.1%
10,000
Earnings Drivers: Strong loan growth supported by government programme. BBTN targets to grow loans by 21-23% in 2017, supported by the government's one million government housing programme. The government has also announced an increase in the FLPP budget to Rp9.7tr in 2017 from Rp9.2tr in 2016. BBTN will be the main player to deliver the programme. We have assumed the higher end of management’s guidance for loan growth at 20% for FY17F.
4.9% 8,000 4.7%
6,000
4.5%
4,000
4.3%
2,000 0
4.1% 2015A
2016A
2017F
Net Interest Income
2018F
2019F
Net Interest Income Margin
Gross Loan& Growth Rp bn
Expect higher funding costs in FY17. Currently, BBTN has a relatively weak funding portfolio: it has 50% CASA ratio which was mainly from FLPP funding while the major bulk (70%) of time deposits were from government-related institutions which tend to carry higher deposit rates. BBTN articulated that some of these deposits are priced at a special deposit rate which can be as high as 9% p.a. However, the tide could change. With the recent tight liquidity situation in the system, along with higher benchmark rate due to volatility of the rupiah, we expect cost of funds to be higher in 2017. FLPP scheme updates. The FLPP scheme is usually renegotiated on an annual basis. However, the revisions on the latest funding scheme have yet to unfold. BBTN is expected to continue playing a major role in disbursing Rp9.7tr FLPP funds in 2017, an increase from effectively Rp4tr in 2016. Concerns on the lower funding portion from the government may hurt funding costs, and hence NIM. Positively, because the budget for FLPP has increased, BBTN should rely less on the interest subsidy scheme, easing stress on BBTN’s liquidity position. The only positive to the interest subsidy scheme is that it is priced at 5%+ BI rate, a rate that equals the normal mortgage rate. Benefiting from Himbara Link initiative. BBTN would stand out as one of the main beneficiaries of the Himbara Link integration initiative. The integration will allow BBTN’s customers to use BMRI’s vast ATM and EDC network at a lower price. This could potentially increase CASA and fee income in the future. The Himbara Link programme was launched in Dec 2015. The programme is expected to integrate 800 ATMs With this programme, transaction fees among Himbara members will be 50% lower at Rp4,000 while cash withdrawal fee will be 90% lower at Rp500. Flattish credit cost. We expect provision charge-off rates for 2017 to be around the same level as 2016, as BBTN will continue to focus on the mortgage segment.
30% 250,000 25%
200,000 150,000
20%
100,000 15%
50,000
10%
0 2015A
2016A
Gross Loan (LHS)
2017F
2018F
2019F
Gross Loan Growth (%) (YoY) (RHS)
Customer Deposit & Growth Rp bn
250,000
30%
200,000
25%
150,000 20% 100,000 15%
50,000 0
10% 2015A
2016A
2017F
2018F
2019F
Customer Deposits (LHS) Customer Deposits Growth (%) (YoY) (RHS)
Loan-to-Deposit Ratio Trend Rp bn 296,487
116%
276,487 256,487
111%
236,487 106%
216,487 196,487
101%
176,487 156,487
96%
136,487 91%
116,487 2015A Loans
2016A Deposit
2017F
2018F
2019F
Loan-to-Deposit Ratio (RHS)
Cost & Income Structure Rp bn 59%
14,000
59%
12,000
58%
10,000
58%
8,000 6,000
57%
4,000
57%
2,000
56% 56%
0 2015A
2016A
Net Interest Income
2017F
2018F
Non-interest Income
2019F
Cost-to-income Ratio
Source: Company, DBS Bank, DBSVI
ASIAN INSIGHTS Page 4
VICKERS SECURITIES
Company Guide Bank Tabungan Negara Asset Quality
Balance Sheet: Targeting NPL ratio at 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: 25 Mar 2017 01:38:35 (WIB) Dissemination Date: 27 Mar 2017 17:21:20 (WIB) GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Bank Ltd, PT DBS Vickers Sekuritas Indonesia (''DBSVI''). This report is solely intended for the clients of DBS Bank Ltd, 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 DBS Bank Ltd, PT DBS Vickers Sekuritas Indonesia (''DBSVI''). The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS Bank Ltd, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the “DBS Group”) have not conducted due diligence on any of the companies, verified any information or sources or taken into account any other factors which we may consider to be relevant or appropriate in preparing the research. Accordingly, we do not make any representation or warranty as to the accuracy, completeness or correctness of the research set out in this report. Opinions expressed are subject to change without notice. This research is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group, may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking services for these companies. Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed, it may not contain all material information concerning the company (or companies) referred to in this report and the DBS Group is under no obligation to update the information in this report. This publication has not been reviewed or authorized by any regulatory authority in Singapore, Hong Kong or elsewhere. There is no planned schedule or frequency for updating research publication relating to any issuer. The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that: (a) such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and (b) there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments stated therein. Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets. Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies) mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the commodity referred to in this report.
ASIAN INSIGHTS
VICKERS SECURITIES Page 9
Company Guide Bank Tabungan Negara
DBSVUSA, a US-registered broker-dealer, does not have its own investment banking or research department, has not 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 and does not engage in market-making. 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 research analyst (s) 1
primarily responsible for the content of this research report, in part or in whole, certifies that he or his associate does not serve as an officer of the issuer or the new listing applicant (which includes in the case of a real estate investment trust, an officer of the management company of the real estate investment trust; and in the case of any other entity, an officer or its equivalent counterparty of the entity who is responsible for the management of the issuer or the new listing applicant) and the research analyst(s) primarily responsible for the content of this research report or his associate does not have financial interests
2
in relation to an issuer or a new listing applicant that the analyst reviews. DBS Group has
procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of research reports. 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. There is no direct link of DBS Group's compensation to any specific investment banking function of the DBS Group. 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 28 Feb 2017.
2.
PT DBS Vickers Sekuritas Indonesia (''DBSVI'') have a proprietary position in Bank Tabungan Negara recommended in this report as of 24 Mar 2017.
3.
Neither DBS Bank Ltd, DBS HK nor DBSV HK market makes in equity securities of the issuer(s) or company(ies) mentioned in this Research Report.
Compensation for investment banking services: 4.
DBS Bank Ltd, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have received compensation, within the past 12 months for investment banking services from Bank Tabungan Negara as of 28 Feb 2017.
5.
DBS Bank Ltd, DBSVS, their subsidiaries and/or other affiliates of DBSVUSA have managed or co-managed a public offering of securities for Bank Tabungan Negara in the past 12 months, as of 28 Feb 2017.
6.
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: 7.
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.
1
An associate is defined as (i) the spouse, or any minor child (natural or adopted) or minor step-child, of the analyst; (ii) the trustee of a trust of which the analyst, his spouse, minor child (natural or adopted) or minor step-child, is a beneficiary or discretionary object; or (iii) another person accustomed or obliged to act in accordance with the directions or instructions of the analyst.
2
Financial interest is defined as interests that are commonly known financial interest, such as investment in the securities in respect of an issuer or a new listing applicant, or financial accommodation arrangement between the issuer or the new listing applicant and the firm or analysis. This term does not include commercial lending conducted at arm's length, or investments in any collective investment scheme other than an issuer or new listing applicant notwithstanding the fact that the scheme has investments in securities in respect of an issuer or a new listing applicant.
ASIAN INSIGHTS Page 10
VICKERS SECURITIES
Company Guide Bank Tabungan Negara
RESTRICTIONS ON DISTRIBUTION 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 General 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 has been prepared by a person(s) who is not licensed by the Hong Kong Securities and Futures Commission to carry on the regulated activity of advising on securities in Hong Kong pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). This report is being distributed in Hong Kong and is attributable to DBS Vickers Hong Kong Limited, a licensed corporation licensed by the Hong Kong Securities and Futures Commission to carry on the regulated activity of advising on securities pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). This report has been prepared by an entity(ies) which is not licensed by the Hong Kong Securities and Futures Commission to carry on the regulated activity of advising on securities pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). This report is being distributed in Hong Kong and is attributable to DBS Vickers Hong Kong Limited, a licensed corporation licensed by the Hong Kong Securities and Futures Commission to carry on the regulated activity of advising on securities pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). For any query regarding the materials herein, please contact Paul Yong (CE. No. ASE988) at
[email protected].
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. 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 DBS Bank Ltd which is regulated by the Monetary Authority of Singapore. 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.
ASIAN INSIGHTS
VICKERS SECURITIES Page 11
Company Guide Bank Tabungan Negara
Dubai
This research report is being distributed 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 DBS Bank Ltd. 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.
DBS Bank Ltd 12 Marina Boulevard, Marina Bay Financial Centre Tower 3 Singapore 018982 Tel. 65-6878 8888 e-mail:
[email protected] Company Regn. No. 196800306E
ASIAN INSIGHTS Page 12
VICKERS SECURITIES