Affin Daily Insight (LV) - 9 June 2014 - MCIL / PBBANK / ECONOMY - TRADE / ECONOMY - US OUTLOOK

Top Calls

Company Update � Media Chinese (ADD, maintain) - Still dominant in Chinese newsprint market Going forward, with the completion of their printing plant in Kota Kinabalu, Sabah, MCIL can now tap the adex market in Sabah. For 2014, MCIL is targeting average circulation for Sin Chew Daily � Sabah print edition newspaper of about 10,000 daily copies, which would further enhance Sin Chew�s position in the Chinese print segment. In 2013, Sin Chew remained the no. 1 Chinese newspaper in Malaysia in terms of circulation and readership. Apart from launching its e-papers to attract and to retain a larger share of their readership, MCIL has also expanded into the education & e-textbook business. For its Hong Kong operations, the Group secured 3-year rights to provide the printed and e-textbook for certain elective subjects in the secondary school. While adex growth may remain challenging, we take comfort that newsprint prices remain at attractive levels. This remains key to our FY15E net profit of RM160m (+2.2% yoy). We maintain our ADD rating on MCIL for: 1) its dominant position in the Chinese newspaper industry; 2) management�s stringent cost-saving measures; and 3) attractive FY15E dividend yield of 5.3%. Our target price of RM1.07 is based on 11x 2015E EPS.

Other Calls

Flash Note � Public Bank (REDUCE, maintain) - RM4.8bn rights issue fixed at RM13.80/share

Economy � Trade - Export growth surprised on the upside again in April

Economy � US Outlook � Weekly Wrap (2 - 6 June 2014) - Non-farm payrolls rose 217k in May, private sector led

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