- The document analyzes companies and market trends in Malaysia based on analyst recommendations and earnings estimates. It finds that analysts have been negative on Malaysia for the past 5 years and are negative again after a brief positive period in 2015. - It identifies companies with the most positive and negative recommendations, highest and lowest earnings growth estimates, and highest and lowest expected returns according to consensus analyst targets. - Top Glove Corporation has the highest expected return at 21% over the next year according to analyst consensus estimates.

1. Presented by: Dr. Andrew Stotz, CFA 21 August 2016
Watching the Street:
Malaysia

2. 28 July 2016 2
Companies with the most positive recommendations Companies with the most negative recommendations
Sources: A. Stotz Investment Research, Thomson Reuters
Note: For methodology explanation visit BecomeaBetterInvestor.net/blog/how-to-benefit-from-our-watching-the-street-charts/
Malaysia hasn’t been a Buy in Asia for the past 5
years, analysts are now negative again after being
relatively positive in 2015
FRAS is one of the oldest companies in Malaysia, it
sources 63% of its revenue from dairy products and is
the No. 2 beverage firm in the country
UMWS mainly earns its revenue from the
automotive segment with brands such as Toyota, Lexus
and Perodua, and is challenged by economic conditions
Malaysia: Consensus recommendations
Bottom-up country relative consensus recommendation
Company name RIC code Sector
Mcap
(US$m)
3MADTO
(US$m)
Berjaya Auto BJAU.KL Cons. Disc. 648 1.3
Sunway Construction Grp. SCOG.KL Industrials 536 1.4
Fraser & Neave Holdings FRAS.KL Cons. Staples 2,358 2.0
Tenaga Nasional TENA.KL Utilities 19,910 37.6
AirAsia AIRA.KL Industrials 1,950 18.1
Company name RIC code Sector
Mcap
(US$m)
3MADTO
(US$m)
UMW Holdings UMWS.KL Cons. Disc. 1,660 1.8
IOI Corporation IOIB.KL Cons. Staples 6,823 9.1
Felda Global Ventures FGVH.KL Cons. Staples 1,683 2.6
Maxis MXSC.KL Telecom 11,191 4.7
Petronas Dagangan PETR.KL Energy 5,750 3.9
Neutral Neutral
Sell
Neutral
Sell
1
3
5
7
9
1
3
5
7
9
2012 2013 2014 2015 YTD16
Malaysia
Buy
Sell

3. 28 July 2016 3
Companies with the highest consensus EPS growth estimates Companies with the lowest consensus EPS growth estimates
Sources: A. Stotz Investment Research, Thomson Reuters
Note: *Available 12 month forward EPS estimates. For methodology explanation visit BecomeaBetterInvestor.net/blog/how-to-benefit-from-our-watching-the-street-charts/
Analysts have been conservative with EPS growth
estimates, but earnings have fallen each year from
2013 to 2015. 2016 EPS is expected to grow by 11%
MYEG develops electronic gov’t services in Malaysia
and private enterprise solutions. Buying the stock 4
years ago would have given you a ten-bagger and
analysts’ expect continued high growth
SIME, GENT, and UMWS are all diversified companies
and are expected to see earnings fall in 2016
Malaysia: Consensus earnings estimates
Consensus EPS growth estimates versus actual EPS growth
Company name RIC code Sector
Mcap
(US$m)
EPS g*
(%)
Malaysia Airports MAHB.KL Industrials 2,386 824
MY EG Services MYEG.KL Info Tech 1,168 158
IOI Corporation IOIB.KL Cons. Staples 6,823 155
Felda Global Ventures FGVH.KL Cons. Staples 1,683 110
Genting Plantations GENP.KL Cons. Staples 2,070 93
Company name RIC code Sector
Mcap
(US$m)
EPS g*
(%)
Hong Leong Bank HLBB.KL Financials 7,113 (15)
Sime Darby SIME.KL Industrials 11,988 (12)
Genting GENT.KL Cons. Disc. 8,252 (5)
UMW Holdings UMWS.KL Cons. Disc. 1,660 (4)
Petronas Gas PGAS.KL Utilities 10,837 (4)
8
4 6
1
11
(30)
(20)
(10)
-
10
20
2012 2013 2014 2015 2016
Actual EPS growth Consensus' estimate - 1yr fwd
(%, YoY)

4. 28 July 2016 4
Companies with the highest consensus target price expected return Companies with the lowest consensus target price expected return
Sources: A. Stotz Investment Research, Thomson Reuters
Note: *Actual return from March 2016 to year-to-date. For methodology explanation visit BecomeaBetterInvestor.net/blog/how-to-benefit-from-our-watching-the-street-charts/
Analysts have expected negative returns in Malaysia
until now, they now expect 3% upside over the next 12
months. Note that analysts were fairly accurate in 2014
TPGC is the world’s largest rubber glove maker by
annual production capacity and its share price tripled
in 2015, benefitting from a strong USD vs MYR
BATO has about 60% of the Malaysian tobacco
market but is challenged by the illicit cigarette trade
Malaysia: Consensus target price
Consensus target price expected return versus actual return
Company name RIC code Sector
Mcap
(US$m)
Up/Dn
(%)
Top Glove Corporation TPGC.KL Health Care 1,343 21
Bumi Armada BUAB.KL Energy 1,107 20
Malakoff Corporation MALA.KL Utilities 1,986 18
Tenaga Nasional TENA.KL Utilities 19,910 14
Berjaya Auto BJAU.KL Cons. Disc. 648 13
Company name RIC code Sector
Mcap
(US$m)
Up/Dn
(%)
Felda Global Ventures FGVH.KL Cons. Staples 1,683 (29)
Hartalega Holdings HTHB.KL Health Care 1,818 (9)
Petronas Dagangan Bhd PETR.KL Energy 5,750 (9)
British American Tobacco
Malaysia
BATO.KL Cons. Staples 3,925 (8)
UMW Holdings UMWS.KL Cons. Disc. 1,660 (8)
(19) (19)
(14)
(5)
(2)
3
(30)
(20)
(10)
-
10
2012 2013 2014 2015 2016* 12mth
fwdActual return Est upside
(%)

5. 6 May 201628 July 2016 5
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