AMMB Holdings Berhad : AmBank Issues Six New Call Warrants (UEM, MRCB)

Press Release

11 January 2012

AmBank Issues Six New Call Warrants

AmBank (M) Berhad ("AmBank") is issuing six new European style cash-settled structured warrants to meet investor demand for investment alternatives and trading opportunities. For AmBank's upcoming issuance, there will be six call warrants ("CW") over the ordinary shares of UEM Land Berhad ("UEMLAND"), Malaysian Resources Corporation Berhad ("MRCB"), Berjaya Sports Toto Berhad ("BJTOTO"), IJM Corporation Berhad ("IJM"), Boustead Holdings Berhad ("BSTEAD") and Malaysian Airline System Berhad ("MAS"). The structured warrants will have tenures of approximately seven months and will be listed on 12 January
2012 with issue size of up to 100 million each.
"As we move into 2012, the Malaysian stock market remains resilient in the face of external uncertainties owing to strong domestic consumption, robust commodities exports with firm crude oil and crude palm oil prices and reviving construction spending arising from the implementation and progress of various projects under the government's Economic Transformation Programme (ETP). Whilst the ongoing Eurozone sovereign debt crisis is far from over, progress particularly from the ECB has been sufficient to stave off a credit crunch and allow time and policies to gradually stimulate economic growth. However, investors should not discount external event risks going forward and should look for trading opportunities in stock underlyers that will potentially benefit from increasing corporate M&A activities, structural reforms and the robust domestic consumption underpinning this current simmer of an uptrend for Bursa Malaysia. Following up on AmBank's successful first tranche of structured warrants for 2012 last week and in the same vein, we are launching our second tranche of the year to provide our investors trading

opportunities. For the coming tranche, AmBank will be issuing six new call

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warrants on UEMLAND, MRCB, BJTOTO, IJM, BSTEAD and MAS," said Ms Ng

Ee Fang, Director/Head, Equity Derivatives, AmInvestment Bank Berhad.
UEMLAND is the largest listed developers in Malaysia with market capitalisation exceeding RM9 billion and was recently included in the FBMKLCI 30 Index, replacing PLUS Expressways. UEMLAND is the co-master developer of Iskandar Malaysia, one of the government's major growth corridors. Within Iskandar Malaysia, UEMLAND is the main land owner and master developer of Nusajaya with
8,300 acres of landbank out of which it is allocating 4,500 acres for Nusajaya West, a housing development with GDV of about RM18 billion. With the Johor-Singapore Second-Link highway running across the development, Nusajaya West is expected to be attractive to many Singaporeans and Malaysians working in Singapore who are looking for more affordable housing. Singapore's recent hike in buyers' stamp duty on those buying their second/third residential property adds to the attractiveness of Nusajaya West. UEMLAND also stands to benefit from jobs allocated by Iskandar JV Co (a joint-venture between Khazanah and Temasek) for two developments in Medini with potential GDV of RM3 billion. AmBank's CW on UEMLAND is priced at 15 sen with gearing of 5.38 times.
MRCB's joint-venture with Ekovest was just recently appointed the Project Delivery Partner (PDP) for the implementation of the government's River of Life project. The project will involve the rehabilitation and beautification of both Klang and Gombak rivers at an estimated cost of RM4 billion over a period of three years. As the PDP, MRCB will not be involved in the cleaning portion of the project but is expected to be among the front-runners for the beautification works valued at about RM1 billion. A major attraction of the project is the opportunity to develop key selected landbanks along the rivers after completion of the rehabilitation and beautification works. AmBank's CW on MRCB is priced at 15 sen with gearing of 7.07 times.
Numbers Forecast Operator BJTOTO has seen an improvement in ticket sales with the introduction of the 4D Jackpot in June 2011. It's 4D Jackpot game has generated good demand with sales per draw ranging between RM1.5-RM2.1 million since launch. As a result, market share under this segment is almost at 50:50 between BJTOTO and its competitor Magnum. The market share for BJTOTO's 4D Jackpot currently stands at about 45%. Overall, on a per draw basis BJTOTO's
ticket sales have improved 3.3% from RM16.6 million in 1HFY11 (ended 31

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October) to RM17.1 million in 1HFY12 while 2QFY12 net profit grew 62.4% YoY on higher revenue from its 4D Jackpot game and lower prize payout ratio. Moving forward, BJTOTO's ticket sales are expected to improve in 3QFY12 due to the snowball effect of the Supreme Toto 6/58 game.AmBank's CW on BJTOTO is priced at 15 sen with gearing of 7.27 times.
Construction conglomerate IJM has a healthy order book of RM3.8 billion. Overall, IJM is expected to benefit from an increase in infrastructure spending in Malaysia. It is looking to finalise the concession terms for the West Coast Expressway by financial year-end followed by the New Pantai Expressway extension in FY13. Jobs from both projects could be worth an estimated RM5 billion. Besides that, it has put in bids for the elevated portion of the Sg.Buloh-Kajang MRT line (Maluri-Plaza Phoenix 5 km stretch). For its other divisions, 1HFY12 (ended 30 September) plantation earnings jumped 25% YoY at RM129mil, boosted by higher CPO production and prices while the industries division also registered higher profits, up
27% YoY, on the back of a pick-up in domestic construction activities. The property
division's profits declined 10% YoY at RM116mil but property earnings are expected to pick up in 2HFY12 on the back of unbilled sales in excess of RM1billion.AmBank's CW on IJM is priced at 15 sen with gearing of 6.16 times.
Diversified group BSTEAD is looking to rake in record profits for FY11 due to strong performance of its plantation division. The plantation division is the main driver for the group's earnings and is expected to contribute about 40 percent of profits.
9MFY11 (ended 30 September) crude palm oil average selling price was recorded atRM3,350 per tonne, up 33% from the corresponding period last year. For 2012, BSTEAD is allocating RM1.4 billion for capital expenditure, 30 percent of whichwill be for the plantation division. Moving forward, BSTEAD will be looking to grow its pharmaceuticals business via construction of new plants and expansion/upgrade of existing ones. BSTEAD's subsidiary Pharmaniaga is expected to contribute about 10 percent of bottomline beginning 2012 and to increase to 15 percent over the next two to three years. As for its heavy industries division, BSTEAD's subsidiary was recently awarded a contract worth RM9 billion by the Ministry of Defence to construct and deliver six units of Second Generation Patrol Vessels with the first delivery expected in 2017. AmBank's CW on BSTEAD is priced at 15 sen with
gearing of 6.97 times.

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MAS' latest business plan sees the group returning to profit by 2013. The two key areas identified to achieve that are a recovery plan to reduce cost and improve revenue and new game changing strategies. For its recovery plan, MAS is looking to achieve RM1.2-RM1.5 billion in improvement over the next 12 months through initiatives such as reduction in excessively loss making routes (e.g. Buenos Aires, Cape Town) while reallocating excess capacity to more profitable routes in Asia. MAS is also expecting higher cost efficiency in operating a brand new fleet, largely to be delivered by end-2012. For its touted game changing strategies, it would involve a new regional premium airline, MAS-AirAsia collaboration, alliances and ancillary business spin-offs. MAS' new regional premium airline, planned for launch in 2012, will be managed independently and will act as a critical feeder into MAS' long-haul network.AmBank's CW on MAS is priced at 15 sen with gearing of 4.33 times.
This offer is aimed at sophisticated traders who want to trade on the direction and volatility of UEMLAND,MRCB,BJTOTO,IJM, BSTEAD, and MAS. The new CWshave gearings ranging between 4.33 and 7.27 and are targeted at investors who want leveraged exposure to the underlying counters.

About AmBank Group

Established in August 1975, AmBank Group is one of the largest banking groups in Malaysia by market capitalisation and comprises AMMB Holdings Berhad and its subsidiaries AmInvestment Bank Berhad, AmInvestment Group Berhad, AmBank (M) Berhad, AmIslamic Bank Berhad, AmG Insurance Berhad and AmLife Insurance Berhad.

The Group provides a wide range of conventional and Islamic banking and financial solutions, including investment banking, commercial banking, corporate banking, retail banking as well as underwriting of life and general insurance.

Adding greater value to this one-stop financial hub is the Group's strategic partnership with the Australia and New Zealand Banking Group (ANZ), one of Australia's leading financial institutions, providing the synergy of a wide network, regional presence and international banking expertise.

For more information, please visit ambankgroup.com

For more information on call warrants, please visit our website www.amwarrants .com For general enquiries, please contact 03-9235 3388 or email to [e-mail] For media enquiries, please contact Ms Ng Ee Fang, Director/Head, Equity Derivatives, AmInvestment Bank Berhad at tel: [phone] or via email at [e-mail]

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