Trading Lens

Fundamental + Technical Analysis

Malaysia | Retail Research | June 30, 2024

KLCI: 1,590.1
MY: Retail Microstrategy KLCI YTD: +9.3%
FBMSCAP: 19,289.8
- Dissecting the DC playbook FBMSCAP YTD: +17.9%

This ‘Trading Lens’ report is intended for educational

purposes only. It represents a preliminary assessment
Data Centre (DC) theme for the Small-Mid Cap space
of the subject company and does not represent initiation • This report explores the narrative surrounding the Data Centre (DC) theme from the
into CGSI's coverage universe. It does not carry perspective of the Small-Mid Cap space and assess “what’s next” for the DC theme in
investment ratings and CGSI does not commit to regular
updates on an ongoing basis. 2H24. We also attempt to address the notion of: 1) whether the DC theme has
somewhat been overplayed, and 2) whether the rise in selected share prices of “DC
KLCI and FBM100 forward P/E beneficiaries” across key sectors is a precursor to a positive spillover effect/trading
opportunities on other underappreciated and upcoming DC beneficiaries.
Simplifying the DC ecosystem
• To simplify, the general Data Centre (DC) ecosystem would be divided into four main
categories: 1) Location – land, 2) Basic infrastructure – construction, materials,
mechanical and electrical (M&E), 3) Hardware – data storage systems and solutions,
and 4) Power and connectivity. In our view, from retail investors/traders perspective,
these are the four key categories that are most relevant for selecting/screening
potential beneficiaries of DC-related contracts and/or services.
DC beneficiaries goes beyond tech companies
Trailing Last close YTD • Based on CGS MY Retail Research’s assessment, beneficiaries of the DC theme goes
Indices P/E (x) YTD % chg
KLCI 15.1 1,590.1 9.3%
beyond the tech names and are distributed across five sectors: 1)
Consumer Products & Services 13.0 585.0 4.5% Technology/hardware, 2) Construction/infrastructure – including engineering services,
Industrial Products & Services 29.5 195.9 13.5% 3) Telco, 4) Utilities and 5) Property. At this juncture, we argue that most Tech-related
Construction 37.5 263.7 37.4%
Technology 63.5 76.4 20.0% DC plays appear overbought (weak Technical Indicators and lofty valuations at current
Financial Services 10.1 17,454.7 5.3% share price levels) and may, to some extent, have run ahead of fundamentals and have
Property 17.8 1,080.9 16.8%
Plantation 17.3 6,982.7 -0.4% largely priced-in short to medium term expectations on DC prospects.
REIT 12.9 826.3 5.6%
Energy 13.4 955.4 13.8% Which sectors are still appealing for DC plays?
Healthcare
Telco & Media
32.9
27.6
2,137.2
595.2
7.4%
1.5%
• In our view, while tech/hardware-related companies will remain as DC beneficiaries
Transport & Logistics 21.3 1,107.2 16.3% over the long-run, the construction and property sectors are the earlier/direct
Utilities
* As of 28 Jun 24
17.6 1,779.7 34.9%
beneficiaries of the DC value chain. Regardless of the types of DC’s (Hyperscale or
Colocation), companies within these sectors are at the forefront of DC contract rollout
and the expansion of DC locations - given the two key requirements in the setting up
of a full-fledged DC facility: 1) Design, construction and engineering expertise for
construction players, and 2) Land/location for property developers (with a larger
proportion of undeveloped industrial land bank).
Exploring the Small-Mid Cap DC playbook
• In the construction and engineering space, we highlight Gadang (Not Rated), AWC
(Not Rated), Jati Tinggi (Not Rated) and HSS Engineers (Add, TP1.31), being those
that have secured DC-type contracts. Going by the size and scale of DC contracts
awarded to larger contractors recently, this trend could trickle down to other smaller
contractors in 2H24 as DC tenders gain momentum. At this juncture, we highlight
Kerjaya Prospek (Not rated), as the group is upbeat on order book growth and is
bidding for DC jobs.
• Within the property sector, recent DC land transactions/deals by more established
property developers provide a base-case for various DC ventures that other property
developers can emulate. Hypothetically, if DC locations expand beyond Klang
Valley/Cyberjaya and Johor (being the DC location hot spots) to a more “greenfield”
location like Negeri Sembilan, we highlight Matrix Concepts (Not Rated) – a major
property developer in the state with sizeable industrial land bank.
• In the tech/HDD and cable support systems space, and purely on Technical Analysis,
Dufu Technology Corp (Not Rated), United U-LI Corp (Not Rated) and Infoline Tec
Group (Not Rated) stack up favorably in terms of potential technical upside – see
Technical Analysis section by Head of Retail Research, Kong Seh Siang.
Gauging new IPO’s with DC prospects
• We highlight Kawan Renergy (Not Rated) and UUE Holdings (Not Rated) as new IPOs
Analyst(s) with potential exposure to the DC space. For Kawan Renergy, DC exposure could
come in the form of alternative energy generation equipment and chilled water tanks
Sharizan ROSELY fabrication which are the pivotal assets in the DC space. Note that, Kawan Renergy
T (60) 3 2635 9252 has expertise/track record in supplying the latter to few data centre projects. On the
E sharizan.rosely@cgsi.com other hand, UUE could benefit from its forte in the Horizontal Directional Drilling (HDD)
method of laying pipes for the distribution of electricity, fibre optic and water to each of
the DC that are related to the DC value chain in Johor.

Please read carefully the important disclosures at the end of this publication. Powered by the EFA Platform
 Malaysia | Trading Lens | Retail Research | June 30, 2024

Why the DC theme still has upside – Micro points on Malaysia DC’s
• According to Edge Weekly in Mar-24, Malaysia is profiled as a Tier 2 DC market. It offers exponential growth, propelled by a combination
of growing population and internet penetration, which drives the expansion of infrastructure, government support and conducive
business environments for DC investments. Malaysia goes alongside Tier 1 DC markets namely - Singapore, Japan, Taiwan and Hong
Kong, among others.
• Malaysia is one of the Tier 2 markets with untapped potential to be a DC hub. Malaysia is part of Asia-Pacific, which is expected to
contribute 90% to global e-commerce growth between 2021 and 2026.
• Malaysia has one of the highest rates of internet penetration at 96.8%, with more than 33m internet users in 2023.
• Johor is one of the fastest-growing data centre markets in the region, currently with 33MW of live and pipeline capacity - most facilities
are in the planning or construction phase.
• Malaysia received RM76bn (US$16bn) worth of investments from DC’s between 2021 and March 2023 – Malaysia’s DC market is
expected to attract investments of US$2.3bn by 2028.

What is needed to build a full-fledged DC?

• According to Dgtl Infra, DC’s can be broken down into four main categories: i) land and building shell: 15-20%, ii) electrical systems:
40-45%, including electrical backup generator, batteries, power distribution unit (PDU), uninterruptible power supply (UPS), switchgear
/ transformers, iii) HVAC / mechanical / cooling systems: 15-20%, including computer room air conditioner (CRAC), computer room air
handler (CRAH), air cooled chillers, chilled water storage and pipes, and iv) building fit-out: 20-25%, including lobby / entrance, meet-
me room (MMR), shipping & receiving area.

Figure 1: Components of a DC – general rule of thumb

SOURCES: www.dgtlinfra.com

Who’s who in the DC space – dissecting the Small-Mid Caps

• Based on channel checks, newsflow, and company announcements, we introduce our compilation of listed companies with existing
and/or potential exposure to the DC value chain and DC growth areas. We have included YTD share price performance and trailing
P/E as additional indicators – see Figure 2

✓ Focus sectors for the DC theme are distributed across 1) Technology/Hard Disk Drive (HDD), M&E solutions, Cooling systems
providers, 2) Construction and engineering services companies, 3) Property developers, 4) Telco, and 5) Utilities.
✓ Share prices of technology/HDD, M&E solutions, Cooling systems providers (those that have secured DC-type contracts and
those with potential to secure DC jobs) have surged +144% YTD on average, at a trailing P/E of 33.4x. Based on technical
charts, we believe most names in these segments are extremely overbought at current levels.
✓ Share prices of construction/engineering services players with exposure to DC construction have risen +56% YTD, at a more
palatable average trailing P/E of 22.4x. We believe new trading opportunities could emerge for Small-Mid Cap names that are
still early in the DC game and may benefit from higher success rates for prevailing DC tenders – Kerjaya Prospek (Not Rated)
✓ Share prices of larger cap property developers have benefitted from the respective DC ventures secured recently, as an added
catalyst to share price – up 71% on average YTD. While there is little visibility as to which other property developers that could
potentially join the DC bandwagon, one alternative could emerge, in our view. We highlight Matrix Concepts (Not Rated) as an
underappreciated and undervalued property developer with a sizeable industrial land bank - IF Negeri Sembilan becomes the
next DC footprint after Klang Valley/Cyberjaya and Johor.
✓ Share prices of larger cap Telco and Utilities/power companies – as a longer-term major beneficiary of DC, has on average,
risen by 34% YTD, at an average trailing P/E of 15.6x. For exposure to fibre route and DC backup power solutions, we highlight
OCK Group (Not Rated).

2
 Malaysia | Trading Lens | Retail Research | June 30, 2024

Figure 2: Distribution of DC beneficiaries and potential DC exposures

Share px Share px
Stock Sector Market Data Centre (RM/share) (RM/share) YTD Trailing
Company code Classification Cap (RM m) Data Centre (DC) exposure growth area 31-Dec-23 YTD % chg P/E (x)
Technology/HDD/M&E
Powerwell Holdings 0217 Industrial Products 267.0 Data Centre electrical switchboards Johor, Cambodia 0.24 0.46 91.7% 14.6
HE Group 0296 Industrial Products 294.0 Data Centre power distribution system Not specified 0.28 0.68 142.9% 29.3
Infoline Tec Group 0253 Technology 348.0 Data Centre - IT infra/Cyber security Not specified 0.76 0.92 21.1% 21.6
Critical Holdings 0291 Industrial Products/Services 353.2 Data Centre MEP solutions Central region & Johor 0.63 0.95 50.8% 23.4
Cloudpoint Technology 0277 Technology 420.0 Data Centre networking solutions Not specified 0.55 0.80 45.5% 16.6
United U-Li Corp 7133 Industrial Products 442.0 Data Centre - Cable support systems Not specified 1.53 2.03 32.7% 9.6
KJTS Group 0293 Industrial Products 443.0 Data Centre cooling systems Not specified 0.27 0.65 140.7% 65.0
LGMS 0249 Technology 620.0 Data Centre - Cyber security Not specified 0.92 1.36 47.8% 51.8
Notion Vtec 0083 Technology/HDD 1,080.0 Data Centre - Hard Disk Drive (HDD) Not specified 0.29 2.07 613.8% na
SNS Network Technology 0259 Technology 1,210.0 Data Centre fit-out / hardware Johor 0.24 0.75 212.5% 37.8
Dufu Technology Corp 7233 Industrial Products/HDD 1,390.0 Data Centre - Hard Disk Drive (HDD) Not specified 1.90 2.55 34.2% 75.6
Vstecs 5162 Technology 1,490.0 Data Centre enterprise systems/hardware All DC locations 1.32 4.14 213.6% 22.1
JCY International 5161 Technology/HDD 1,500.0 Data Centre - Hard Disk Drive (HDD) Not specified 0.22 0.70 218.2% na
Average 143.5% 33.4
Construction/Engineering
Pasukhas 0177 Industrial Products 33.3 Data Centre M&E and Infra Selangor 0.16 0.18 12.5% 29.5
Jati Tinggi 0292 Construction 215.0 Data Center infrastructure utilities Not specified 0.27 0.57 111.1% 22.4
Gadang 9261 Construction/property 317.0 Data Centre construction Klang Valley 0.34 0.44 29.4% na
AWC 7579 Engineering services 345.0 Data Centre - plumbing works Selangor 0.56 1.08 92.9% 25.9
MN Holdings 0245 Construction 445.0 Data Center infrastructure utilities Johor 0.53 0.96 81.1% na
HSS Engineers 0185 Construction 470.0 Data Centre - Project Management Johor 0.97 0.94 -3.1% 20.4
Binastra Corporation 7195 Construction 1,260.0 Data Centre construction Selangor 0.66 1.16 75.8% 16.6
Kerjaya Prospek 7161 Construction/property 2,290.0 Data Centre construction (tendering) Not specified 1.55 1.81 16.8% 17.8
Sunway Construction 5263 Construction 4,900.0 Data Centre construction Selangor 1.94 3.78 94.8% na
IJM Corp 3336 Construction/property 11,350.0 Data Centre construction Johor 1.88 3.05 62.2% 27.8
Gamuda 5398 Construction/property 18,230.0 Data Centre construction Selangor 4.59 6.65 44.9% 18.6
Average 56.2% 22.4
Property Developer
Crescendo Corporation 6718 Property 1,040.0 Land disposal to Microsoft Payments Johor 2.32 3.70 59.5% 18.2
Mah Sing Group 8583 Property 4,430.0 DC Co-investor (100MW) - Bridge DC Selangor 0.83 1.72 107.2% 19.5
UEM Sunrise 5148 Property 5,310.0 DC Campus (360MW) - LOGOS Johor 0.72 1.05 45.8% 84.2
Sime Darby Property 5288 Property 8,910.0 Hyperscale DC (80MW) - Google Selangor 0.63 1.37 117.5% 19.8
Average 70.8% 35.4
Telco/Utilities
OCK Group 0172 Telco/Telco towers 620.9 DC power management solutions Johor 0.44 0.58 31.8% 16.1
TIME dotCom 5031 Telecommunications 9,300.0 DC solutions/DC provider Domestic/ASEAN 5.40 5.03 -6.9% 21.1
Telekom Malaysia 4863 Telecommunications 26,291.0 DC venture with SingTel (64MW) Johor 5.55 6.85 23.4% 13.4
YTL Power 6742 Utilities 39,290.0 DC partner with Nvidia Johor 2.54 4.76 87.4% 11.9
Average 33.9% 15.6
New IPO
UUE Holdings (IPO: 2 Jul@RM0.24) 0310 Industrial Products 146.0 DC underground utilities Not specified 0.24 na na 8.0
Kawan Renergy 0307 Industrial Products 490.0 DC equipment and fabrication Not specified 0.30 0.89 196.7% 28.5
SOURCES: CGSI RESEARCH, COMPANY REPORTS, MEDIA REPORTS

New IPOs with DC angles

• We also highlight Kawan Renergy (Not Rated) and UUE Holdings as new IPOs with potential exposure to the DC space.

✓ Kawan Renergy (Ace market listing on 29 May 24): An ESG-driven business model. Beneficiary of higher demand for
renewable energy (RE) plants arising from RE expansion plans under the National Energy Transition Roadmap (NETR), higher
demand for industrial process equipment and rising contribution from recurring income. A net cash company with exposure to
oleochemical and waste recovery industries, power and utilities, food processing, glove and oil & gas sectors. Kawan Renergy
has the capability to tap into the DC projects through its 2 principal activities: 1) Industrial process equipment (54% of
1HFY10/24 revenue) - chilled water tanks and 2) Renewable energy and cogeneration plants (26% of 1HFY10/24 revenue) -
cogeneration plant for chilled water, electricity generation and thermal solution. Two alternative energy sources are required in
most DC such as 1) Renewable energy (i.e. biomass) and 2) Non-renewable energy (i.e. diesel, natural gas). Kawan Renergy
possesses the proficiency to provide the formal solution.

✓ UUE Holdings (upcoming Ace market listing on 2 Jul 24): UUE is an underground utilities engineering specialist based in
Johor. The group’s strength in deploying HDD method of laying pipes, and employ the open cut and micro trenching excavation
methods (90% of FY2/24 revenue) for the connectivity of utilities (i.e. electricity, fibre optic and water) lays a good foundation
for the group in participating in the DC space. Moreover, the group has diversified into high-density polyethylene (HDPE) pipes
manufacturing to complement its drilling engineering solutions (10% of FY2/24 revenue). Key industries served include
electricity and telecommunications in Malaysia and Singapore. UUE's clientele is primarily the main contractors appointed by
the utility companies (ie.Tenaga Nasional) and other telecommunication players in Malaysia and Singapore.

Lee Ching Poh, Analyst – Retail Research

3
 Malaysia | Trading Lens | Retail Research | June 30, 2024

CGSI Retail Research’s Actively Managed Portfolio (AMP)

• Actively Managed Portfolio (AMP) is a medium-term investment (portfolio) product that recommends stocks purely based on Technical
Analysis (TA). Most of the stocks recommended in the portfolio are selected based on attractive trading angles and emerging trends.
• The key criterion here is to trade with the trend and cut losses short. The list therefore changes periodically. This portfolio is suited for
investors who have some or little time to monitor the stock market on a daily basis. Investors or traders should be mindful of the risks
involved.
• As of 28 Jun, the AMP list is unchanged and has generated a total return of +36.2% YTD (2023 AMP return: +26.4%). Note: The
portfolio is now in risk-off mode – hence the smaller position size will be applied for new entries (if any). At this juncture, our AMP
does not feature any companies with DC-related themes.

Figure 3: Actively Managed Portfolio (AMP) (as of 28 Jun 2024)

SOURCES: CGSI RESEARCH

Lee Ching Poh, Analyst – Retail Research

What’s next? - How should investors/traders play the DC theme

• On the Retail Research side, we anticipate the DC theme to remain relevant and may still spur potential catalysts in 2H24. Going by
the expected rising momentum of DC-related investments, we believe investors’ sentiment/interest should continue to gravitate towards
other potential new DC beneficiaries. While new leads on the setup of new DC facilities, visibility, size and scale of new DC contract
pipeline, and potential expansion of new DC growth areas (beyond the existing DC hotspots in Selangor and Johor) appears limited at
this juncture, we would continue to keep an eye on the DC Small-Mid Cap space – including potential new DC developments relevant
to the construction and property sectors.
• Filtering out the Small-Mid Caps in the DC space. We segregate the Small-Mid Caps (RM3bn market cap and below) from the list
in Figure 2 above and isolate those with less than +50% increase in share prices YTD. We filtered out six names: 1) Dufu Technology
Corp (Not Rated, +34.2% YTD) - HDD, 2) United U-Li Corp (Not Rated, +33% YTD) – Cable support systems, 3) Infoline Tec (Not
Rated, +21% YTD) – IT Infra/Cyber security, 4) LGMS (Not Rated, +48% YTD) – Cyber security, 5) Cloudpoint Technology (Not
Rated, +46% YTD) – Networking solutions, and 6) Kerjaya Prospek (Not Rated, +17% YTD) – construction/property; according to an
article in the Edge Weekly, Kerjaya Prospek is upbeat on its order book growth outlook and is actively pursuing DC-related contracts
– outstanding order book stood at RM4.5bn (30-40% from external jobs).
• Purely on Technical Analysis. Of the six selections, Dufu, United U-LI and Infoline Tec stack up favorably in terms of medium to
longer term potential technical upside – see Technical Analysis section below.

4
 Malaysia | Trading Lens | Retail Research | June 30, 2024

Dufu Technology Corp

SOURCES: Bloomberg, CGSI RESEARCH, COMPANY REPORTS

• Technical Outlook: Prices broke out above its 1.5year sideway rectangle pattern and Resistance 1 (RM) 3.00
its 200-week EMA in April. The breakout likely suggests that the consolidation is over Resistance 2 3.12
and further upside beckons, targeting the 50% Fibonacci Retracement levels Resistance 3 3.33
(RM2.98). The psychological RM3.00 levels may act as a magnet to draw prices higher Support 1 2.40
in the short-term. Support 2 2.26
Support 3 2.05
• Short-to-medium term resistances are seen at RM3.00 and RM3.12.

• Downside support can be found near the RM2.20-2.26 levels i.e. the breakout
levels. As long as prices stay above the 50-week EMA (RM2.05), the odds would
continue to favour the bulls in the short-medium term.

5
 Malaysia | Trading Lens | Retail Research | June 30, 2024

United U-Li Corporation

SOURCES: Bloomberg, CGSI RESEARCH, COMPANY REPORTS

• Technical Outlook: Prices are trading at a 6-year high, signalling that momentum is Resistance 1 (RM) 2.38
still strong. The breakout above the 2023 high of RM1.80 gives the bulls a big boost Resistance 2 2.53
that the longer-term uptrend is continuing. Resistance 3 2.63
Support 1 1.80
• Short-to-medium term resistances are seen at RM2.38 and RM2.53. The higher Support 2 1.69
highs and higher lows structure from the RM0.845 lows ought to keep the current Support 3 1.50
uptrend going.

• Downside support is seen at the 2023 highs and together with the 20-week EMA
(RM1.69) are likely to provide support in the short term. Falling below the 50-week
EMA (RM1.50) is negative for the stock.

6
 Malaysia | Trading Lens | Retail Research | June 30, 2024

Infoline Tec

SOURCES: Bloomberg, CGSI RESEARCH, COMPANY REPORTS

• Technical Outlook: Prices appear to be on the verge of hitting a fresh all-time weekly Resistance 1 (RM) 1.04
close if prices finish week at current levels. The strong close signals that the bulls are Resistance 2 1.19
in charge and further upside is likely to follow in the coming weeks. The 4 white Resistance 3 1.28
candles, supported by the rising EMAs. are also supportive of higher prices in the short Support 1 0.87
term. Support 2 0.82
Support 3 0.77
• The immediate resistance is seen at RM1.04, which is the intra-week high. A push
beyond that may see prices climb to test its Fibonacci targets at RM1.19 (1.382x) and
RM1.28 (1.618x) thereafter.

• Downside support are set at RM0.87, RM0.82 and RM0.77 (critical). Any close
below the 50-week EMA warns that further consolidation is needed before the bulls
are push the stock higher.

Kong Seh Siang – Head of Retail Research

7
 Malaysia | Trading Lens | Retail Research | June 30, 2024

DISCLAIMER
The content of this report (including the views and opinions expressed therein, and the information comprised therein) has been prepared by and belongs to CGS
International. Reports relating to a specific geographical area are produced and distributed by the corresponding CGS International entity as listed in the table below.
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.
By accepting this report, the recipient hereof represents and warrants that he is entitled to receive such report in accordance with the restrictions set forth below and
agrees to be bound by the limitations contained herein (including the “Restrictions on Distributions” set out below). Any failure to comply with these limitations may
constitute a violation of law. This publication is being supplied to you strictly on the basis that it will remain confidential. No part of this report may be (i) copied,
photocopied, duplicated, stored or reproduced in any form by any means; or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part,
for any purpose without the prior written consent of CGS International.
The information contained in this research report is prepared from data believed to be correct and reliable at the time of issue of this report. CGS International may or
may not issue regular reports on the subject matter of this report at any frequency and may cease to do so or change the periodicity of reports at any time. CGS
International has no obligation to update this report in the event of a material change to the information contained in this report. CGS International does not accept any
obligation to (i) check or ensure that the contents of this report remain current, reliable or relevant, (ii) ensure that the content of this report constitutes all the information
a prospective investor may require, (iii) ensure the adequacy, accuracy, completeness, reliability or fairness of any views, opinions and information, and accordingly,
CGS International, its affiliates and related corporations shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct,
indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof. In particular, CGS International disclaims all responsibility and
liability for the views and opinions set out in this report.
Unless otherwise specified, this report is based upon sources which CGS International considers to be reasonable. Such sources will, unless otherwise specified, for
market data, be market data and prices available from the main stock exchange or market where the relevant security is listed, or, where appropriate, any other market.
Information on the accounts and business of company(ies) will generally be based on published statements of the company(ies), information disseminated by regulatory
information services, other publicly available information and information resulting from our research.
Whilst every effort is made to ensure that statements of facts made in this report are accurate, all estimates, projections, forecasts, expressions of opinion and other
subjective judgments contained in this report are based on assumptions considered to be reasonable as of the date of the document in which they are contained and
must not be construed as a representation that the matters referred to therein will occur. Past performance is not a reliable indicator of future performance. The value
of investments may go down as well as up and those investing may, depending on the investments in question, lose more than the initial investment. No report shall
constitute an offer or an invitation by or on behalf of CGS International or any of its affiliates to any person to buy or sell any investments.
CGS International, its affiliates and related corporations and/or their respective directors, associates, connected parties and/or employees may own or have positions
in securities of the company(ies) covered in this research report or any securities related thereto and may from time to time add to or dispose of, or may be materially
interested in, any such securities. Further, CGS International, its affiliates and their respective related corporations do and seek to do business with the company(ies)
covered in this research report and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies), may
sell them to or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory, underwriting or
placement services for or relating to such company(ies) as well as solicit such investment, advisory or other services from any entity mentioned in this report.
CGS International or its affiliates may enter into an agreement with the company(ies) covered in this report relating to the production of research reports. CGS
International may disclose the contents of this report to the company(ies) covered by it and may have amended the contents of this report following such disclosure.
The analyst responsible for the production of this report hereby certifies that the views expressed herein accurately and exclusively reflect his or her personal views
and opinions about any and all of the issuers or securities analysed in this report and were prepared independently and autonomously. No part of the compensation of
the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations(s) or view(s) in this report. The analyst(s) who prepared this
research report is prohibited from receiving any compensation, incentive or bonus based on specific investment banking transactions or for providing a specific
recommendation for, or view of, a particular company. Information barriers and other arrangements may be established where necessary to prevent conflicts of interests
arising. However, the analyst(s) may receive compensation that is based on his/their coverage of company(ies) in the performance of his/their duties or the performance
of his/their recommendations and the research personnel involved in the preparation of this report may also participate in the solicitation of the businesses as described
above. In reviewing this research report, an investor should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of
interest. Additional information is, subject to the duties of confidentiality, available on request.
Reports relating to a specific geographical area are produced by the corresponding CGS International entity as listed in the table below. The term “CGS International”
shall denote, where appropriate, the relevant entity distributing or disseminating the report in the particular jurisdiction referenced below, or, in every other case except
as otherwise stated herein, CGS International Securities Pte. Ltd. and its affiliates, subsidiaries and related corporations.
Jurisdiction CGS International Entity Regulated by
Hong Kong CGS International Securities Hong Kong Limited Securities and Futures Commission Hong Kong
Indonesia PT CGS International Sekuritas Indonesia Financial Services Authority of Indonesia
Malaysia CGS International Securities Malaysia Sdn. Bhd. (formerly known Securities Commission Malaysia
as CGS-CIMB Securities Sdn. Bhd.)
Singapore CGS International Securities Singapore Pte. Ltd. Monetary Authority of Singapore
South Korea CGS International Securities Hong Kong Limited, Korea Branch Financial Services Commission and Financial Supervisory Service
Thailand CGS International Securities (Thailand) Co. Ltd. Securities and Exchange Commission Thailand
Other Significant Financial Interests:
(i) As of May 29, 2024 CGS International has a proprietary position in the securities (which may include but not be limited to shares, warrants, call warrants and/or any
other derivatives) in the following company or companies covered or recommended in this report:
(a) -
(ii) Analyst Disclosure: As of May 31, 2024, the analyst(s) who prepared this report, and the associate(s), has / have an interest in the securities (which may include
but not be limited to shares, warrants, call warrants and/or any other derivatives) in the following company or companies covered or recommended in this report:
(a) -
This report does not purport to contain all the information that a prospective investor may require. Neither CGS International nor any of its affiliates make any guarantee,
representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this
report. Neither CGS International nor any of its affiliates nor their related corporations shall be liable in any manner whatsoever for any consequences (including but

8
 Malaysia | Trading Lens | Retail Research | June 30, 2024

not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.
This report is general in nature and has been prepared for information purposes only. It is intended for circulation amongst CGS International’s clients generally and
does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. The
information and opinions in this report are not and should not be construed or considered as an offer, recommendation or solicitation to buy or sell the subject securities,
related investments or other financial instruments or any derivative instrument, or any rights pertaining thereto.
Investors are advised to make their own independent evaluation of the information contained in this research report, consider their own individual investment objectives,
financial situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects before
participating in any transaction in respect of the securities of company(ies) covered in this research report.
The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of investors.
Restrictions on Distributions
Australia: Despite anything in this report to the contrary, this research is provided in Australia by CGS International Securities Singapore Pte. Ltd. (“CGS SG”) and
CGS International Securities Hong Kong Limited (“CGS HK”). This research is only available in Australia to persons who are “wholesale clients” (within the meaning of
the Corporations Act 2001 (Cth) and is supplied solely for the use of such wholesale clients and shall not be distributed or passed on to any other person. You represent
and warrant that if you are in Australia, you are a “wholesale client”. This research is of a general nature only and has been prepared without taking into account the
objectives, financial situation or needs of the individual recipient. CGS SG and CGS HK do not hold, and are not required to hold an Australian financial services license.
CGS SG and CGS HK rely on “passporting” exemptions for entities appropriately licensed by the Monetary Authority of Singapore (under ASIC Class Order 03/1102)
and the Securities and Futures Commission in Hong Kong (under ASIC Class Order 03/1103).
Canada: This research report has not been prepared in accordance with the disclosure requirements of Dealer Member Rule 3400 – Research Restrictions and
Disclosure Requirements of the Investment Industry Regulatory Organization of Canada. For any research report distributed by CIBC, further disclosures related to
CIBC conflicts of interest can be found at https://researchcentral.cibcwm.com .
China: For the purpose of this report, the People’s Republic of China (“PRC”) does not include the Hong Kong Special Administrative Region, the Macau Special
Administrative Region or Taiwan. The distributor of this report has not been approved or licensed by the China Securities Regulatory Commission or any other relevant
regulatory authority or governmental agency in the PRC. This report contains only marketing information. The distribution of this report is not an offer to buy or sell to
any person within or outside PRC or a solicitation to any person within or outside of PRC to buy or sell any instruments described herein. This report is being issued
outside the PRC to a limited number of institutional investors and may not be provided to any person other than the original recipient and may not be reproduced or
used for any other purpose.
France: Only qualified investors within the meaning of French law shall have access to this report. This report shall not be considered as an offer to subscribe to, or
used in connection with, any offer for subscription or sale or marketing or direct or indirect distribution of financial instruments and it is not intended as a solicitation for
the purchase of any financial instrument.
Germany: This report is only directed at persons who are professional investors as defined in sec 31a(2) of the German Securities Trading Act (WpHG). This publication
constitutes research of a non-binding nature on the market situation and the investment instruments cited here at the time of the publication of the information.
The current prices/yields in this issue are based upon closing prices from Bloomberg as of the day preceding publication. Please note that neither the German Federal
Financial Supervisory Agency (BaFin), nor any other supervisory authority exercises any control over the content of this report.
Hong Kong: This report is issued and distributed in Hong Kong by CGS HK which is licensed in Hong Kong by the Securities and Futures Commission for Type 1
(dealing in securities) and Type 4 (advising on securities) activities. Any investors wishing to purchase or otherwise deal in the securities covered in this report should
contact the Head of Sales at CGS HK. The views and opinions in this research report are our own as of the date hereof and are subject to change. If the Financial
Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are
unaffected. CGS HK has no obligation to update its opinion or the information in this research report.
This publication is strictly confidential and is for private circulation only to clients of CGS HK.
CGS HK does not make a market on other securities mentioned in the report.
EFACustomAnalystRelationship|
Indonesia: This report is issued and distributed by PT CGS International Sekuritas Indonesia (“CGS ID”). The views and opinions in this research report are our own
as of the date hereof and are subject to change. CGS ID has no obligation to update its opinion or the information in this research report. This report is for private
circulation only to clients of CGS ID. Neither this report nor any copy hereof may be distributed in Indonesia or to any Indonesian citizens wherever they are domiciled
or to Indonesian residents except in compliance with applicable Indonesian capital market laws and regulations.
This research report is not an offer of securities in Indonesia. The securities referred to in this research report have not been registered with the Financial Services
Authority (Otoritas Jasa Keuangan) pursuant to relevant capital market laws and regulations, and may not be offered or sold within the territory of the Republic of
Indonesia or to Indonesian citizens through a public offering or in circumstances which constitute an offer within the meaning of the Indonesian capital market law and
regulations.
Ireland: CGS International is not an investment firm authorised in the Republic of Ireland and no part of this document should be construed as CGS International acting
as, or otherwise claiming or representing to be, an investment firm authorised in the Republic of Ireland.
Malaysia: This report is distributed in Malaysia by CGS International Securities Malaysia Sdn. Bhd. (formerly known as CGS-CIMB Securities Sdn. Bhd.) (“CGS MY”)
solely for the benefit of and for the exclusive use of our clients. Recipients of this report are to contact CGS MY, at Level 29, Menara Aras Raya, No. 11, Jalan Raja
Laut, 50350 Kuala Lumpur, Malaysia, in respect of any matters arising from or in connection with this report. CGS-CIMB Malaysia has no obligation to update, revise
or reaffirm its opinion or the information in this research report after the date of this report.
New Zealand: In New Zealand, this report is for distribution only to persons who are wholesale clients pursuant to section 5C of the Financial Advisers Act 2008.
Singapore: This report is issued and distributed by CGS SG. CGS SG is a capital markets services licensee under the Securities and Futures Act 2001. Accordingly,
it is exempted from the requirement to hold a financial adviser’s licence under the Financial Advisers Act, 2001 (“FAA”) for advising on investment products, by issuing
or promulgating research analyses or research reports, whether in electronic, print or other form. CGS SG is subject to the applicable rules under the FAA unless it is
able to avail itself to any prescribed exemptions.
Recipients of this report are to contact CGS SG, 10 Marina Boulevard, Marina Bay Financial Centre Tower 2, #09-01, Singapore 018983 in respect of any matters
arising from, or in connection with this report. CGS SG has no obligation to update its opinion or the information in this research report. This publication is strictly
confidential and is for private circulation only. If you have not been sent this report by CGS SG directly, you may not rely, use or disclose to anyone else this report or
its contents.
If the recipient of this research report is not an accredited investor, expert investor or institutional investor, CGS SG accepts legal responsibility for the contents of the
report without any disclaimer limiting or otherwise curtailing such legal responsibility. If the recipient is an accredited investor, expert investor or institutional investor,
the recipient is deemed to acknowledge that CGS SG is exempt from certain requirements under the FAA and its attendant regulations, and as such, is exempt from
complying with the following:

9
 Malaysia | Trading Lens | Retail Research | June 30, 2024

(a) Section 34 of the FAA (obligation to disclose product information);

(b) Section 36 (duty not to make recommendation with respect to any investment product without having a reasonable basis where you may be reasonably expected
to rely on the recommendation) of the FAA;
(c) MAS Notice on Information to Clients and Product Information Disclosure [Notice No. FAA-N03];
(d) MAS Notice on Recommendation on Investment Products [Notice No. FAA-N16];
(e) Section 45 (obligation on disclosure of interest in specified products), and
(f) any other laws, regulations, notices, directive, guidelines, circulars and practice notes which are relates to the above, to the extent permitted by applicable laws, as
may be amended from time to time, and any other laws, regulations, notices, directive, guidelines, circulars, and practice notes as we may notify you from time to time.
In addition, the recipient who is an accredited investor, expert investor or institutional investor acknowledges that as CGS SG is exempt from Section 36 of the FAA,
the recipient will also not be able to file a civil claim against CGS SG for any loss or damage arising from the recipient’s reliance on any recommendation made by CGS
SG which would otherwise be a right that is available to the recipient under Section 36 of the FAA .
CGS SG, its affiliates and related corporations, their directors, associates, connected parties and/or employees may own or have positions in specified products of the
company(ies) covered in this research report or any specified products related thereto and may from time to time add to or dispose of, or may be materially interested
in, any such specified products. Further, CGS SG, its affiliates and its related corporations do and seek to do business with the company(ies) covered in this research
report and may from time to time act as market maker or have assumed an underwriting commitment in specified products of such company(ies), may sell them to or
buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory, underwriting or placement services
for or relating to such company(ies) as well as solicit such investment, advisory or other services from any entity mentioned in this report.
CGS SG does not make a market on other specified products mentioned in the report.
South Korea: This report is issued and distributed in South Korea by CGS International Securities Hong Kong Limited, Korea Branch (“CGS KR”) which is licensed as
a cash equity broker, and regulated by the Financial Services Commission and Financial Supervisory Service of Korea. In South Korea, this report is for distribution
only to professional investors under Article 9(5) of the Financial Investment Services and Capital Market Act of Korea (“FSCMA”).
Spain: This document is a research report and it is addressed to institutional investors only. The research report is of a general nature and not personalised and does
not constitute investment advice so, as the case may be, the recipient must seek proper advice before adopting any investment decision. This document does not
constitute a public offering of securities.
CGS International is not registered with the Spanish Comision Nacional del Mercado de Valores to provide investment services.
Sweden: This report contains only marketing information and has not been approved by the Swedish Financial Supervisory Authority. The distribution of this report is
not an offer to sell to any person in Sweden or a solicitation to any person in Sweden to buy any instruments described herein and may not be forwarded to the public
in Sweden.
Switzerland: This report has not been prepared in accordance with the recognized self-regulatory minimal standards for research reports of banks issued by the Swiss
Bankers’ Association (Directives on the Independence of Financial Research).
Thailand: This report is issued and distributed by CGS International Securities (Thailand) Co. Ltd. (“CGS TH”) based upon sources believed to be reliable (but their
accuracy, completeness or correctness is not guaranteed). The statements or expressions of opinion herein were arrived at after due and careful consideration for use
as information for investment. Such opinions are subject to change without notice and CGS TH has no obligation to update its opinion or the information in this research
report.
Corporate Governance Report (CGR): (Thai CGR and Anti-Corruption of Thai Listed Companies - Click here)
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 result may be changed after that
date. CGS TH does not confirm nor certify the accuracy of such survey result.
Score Range: 90 - 100 80 – 89 70 - 79 Below 70 No Survey Result
Description: Excellent Very Good Good N/A N/A

United Arab Emirates: The distributor of this report has not been approved or licensed by the UAE Central Bank or any other relevant licensing authorities or
governmental agencies in the United Arab Emirates. This report is strictly private and confidential and has not been reviewed by, deposited or registered with UAE
Central Bank or any other licensing authority or governmental agencies in the United Arab Emirates. This report is being issued outside the United Arab Emirates to a
limited number of institutional investors and must not be provided to any person other than the original recipient and may not be reproduced or used for any other
purpose. Further, the information contained in this report is not intended to lead to the sale of investments under any subscription agreement or the conclusion of any
other contract of whatsoever nature within the territory of the United Arab Emirates.
United Kingdom and European Economic Area (EEA): In the United Kingdom and European Economic Area, this material is also being distributed by CGS
International Securities UK Ltd. (“CGS UK”). CGS UK is authorized and regulated by the Financial Conduct Authority and its registered office is at 53 New Broad Street,
London EC2M 1JJ. The material distributed by CGS UK has been prepared in accordance with CGS International’s policies for managing conflicts of interest arising
as a result of publication and distribution of this material. This material is for distribution only to, and is solely directed at, selected persons on the basis that those
persons: (a) are eligible counterparties and professional clients of CGS UK; (b) have professional experience in matters relating to investments falling within Article
19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”), (c) fall within Article 49(2)(a) to (d) (“high net worth
companies, unincorporated associations etc”) of the Order; (d) are outside the United Kingdom subject to relevant regulation in each jurisdiction, material(all such
persons together being referred to as “relevant persons”). This material is directed only at relevant persons and must not be acted on or relied on by persons who are
not relevant persons. Any investment or investment activity to which this material relates is available only to relevant persons and will be engaged in only with relevant
persons.
This material is categorised as non-independent for the purposes of CGS UK and therefore does not provide an impartial or objective assessment of the subject matter
and does not constitute independent research. Consequently, this material has not been prepared in accordance with legal requirements designed to promote the
independence of research and will not be subject to any prohibition on dealing ahead of the dissemination of research. Therefore, this material is considered a marketing
communication.
United States: This research report is distributed in the United States of America by CGS International Securities USA, Inc, a U.S. registered broker-dealer and an
affiliate of CGS MY, CGS SG, CGS ID, CGS TH and CGS HK and is distributed solely to persons who qualify as “U.S. Institutional Investors” as defined in Rule 15a-6
under the Securities and Exchange Act of 1934. This communication is only for Institutional Investors whose ordinary business activities involve investing in shares,
bonds, and associated securities and/or derivative securities and who have professional experience in such investments. Any person who is not a U.S. Institutional
Investor or Major Institutional Investor must not rely on this communication. The delivery of this research report to any person in the United States of America is not a

10
 Malaysia | Trading Lens | Retail Research | June 30, 2024

recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein. CGS International Securities USA,
Inc. (“CGS US”), is a FINRA/SIPC member and takes responsibility for the content of this report. For further information or to place an order in any of the above-
mentioned securities please contact a registered representative of CGS US.
CGS International Securities USA, Inc. does not make a market on other securities mentioned in the report.
CGS US has not managed or co-managed a public offering of any of the securities mentioned in the past 12 months.
CGS US has not received compensation for investment banking services from any of the company mentioned in the past 12 months.
CGS US neither expects to receive nor intends to seek compensation for investment banking services from any of the company mentioned within the
next 3 months.
United States Third-Party Disclaimer: If this report is distributed in the United States of America by Raymond James & Associates, Inc (“RJA”), this report is third-
party research prepared for and distributed in the United States of America by RJA pursuant to an arrangement between RJA and CGS International Securities Pte.
Ltd. (“CGSI”). CGSI is not an affiliate of RJA. This report is distributed solely to persons who qualify as “U.S. Institutional Investors” or as “Major U.S. Institutional
Investors” as defined in Rule 15a-6 under the Securities and Exchange Act of 1934, as amended. This communication is only for U.S. Institutional Investors or Major
U.S. Institutional Investor whose ordinary business activities involve investing in shares, bonds, and associated securities and/or derivative securities and who have
professional experience in such investments. Any person who is not a U.S. Institutional Investor or Major U.S. Institutional Investor must not rely on this communication.
The delivery of this report to any person in the U.S. is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any
opinion expressed herein. If you are receiving this report in the U.S from RJA, a FINRA/SIPC member, it takes responsibility for the content of this report. For further
information or to place an order in any of the above-mentioned securities please contact a registered representative of CGS US or RJA.
https://raymondjames.com/InternationalEquityDisclosures
Other jurisdictions: In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is only for distribution to professional, institutional or
sophisticated investors as defined in the laws and regulations of such jurisdictions.
Distribution of stock ratings and investment banking clients for quarter ended on 31 March 2024
634 companies under coverage for quarter ended on 31 March 2024
Rating Distribution (%) Investment Banking clients (%)
Add 65.5% 1.3%
Hold 24.1% 0.2%
Reduce 10.4% 0.3%

Recommendation Framework
Stock Ratings Definition:
Add The stock’s total return is expected to exceed 10% over the next 12 months.
Hold The stock’s total return is expected to be between 0% and positive 10% over the next 12 months.
Reduce The stock’s total return is expected to fall below 0% or more over the next 12 months.
The total expected return of a stock is defined as the sum of the: (i) percentage difference between the target price and the current price and (ii) the forward net
dividend yields of the stock. Stock price targets have an investment horizon of 12 months.
Sector Ratings Definition:
Overweight An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation.
Neutral A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation.
Underweight An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation.
Country Ratings Definition:
Overweight An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark.
Neutral A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark.
Underweight An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark.

#03c

11