Citigroup 花旗：亚太地区中小行业研究周刊

Asia ViewFinder Small & Mid Caps Weekly

30 March 2007 | 49 pages

Citigroup Global Markets | Equity Research

 Focus of the week — Continuing on our gaming theme from last week, we
initiated coverage on Diamond Flower (2397.TW) at Buy with a price target of
NT$92. Motherboards for gaming accounted for 19% of its 2006 sales, and we
expect gaming sales to grow 70-80% yoy in 2007. Slot machine MB and subsystems
also have higher ASP and gross margin. GE Equity has a 5% stake, and
we think Diamond Flower a possible candidate for private equity.
 Performance highlights — Share prices of Singapore and Malaysia property
companies rose 6-13% this week. There was also stronger interest on China
cigarette plays, as AMVIG and Huabao was up 12-18%. Taiwan shipping
companies dropped on the rebound in oil prices, but selected small-cap techs
that offer niche products continue to perform well. Indian sugar companies
rebounded 6-7% on news of export subsidy and government building reserve.
 In this week — AMVIG, Lee & Man Paper, Li Ning, Xingda Int'l, Dah Sing
Banking Group, Kingboard Chemical, Melco, NagaCorp, Diamond Flower,
Silitech Technology Corp, LG Dacom, Sodiff Advanced Materials, Tat Hong
Holdings, Gamuda, SP Setia, TA Enterprise, TSH Resources, BEC World,
Colgate Palmolive, Hexaware Technologies, Indocement.
 Upcoming events — Greener Asia Mini Conference (16 Apr in SG), Asia Pac
Prop Conference (23-24 Apr in SG), Discover Bangladesh (10-11 May, Dhaka),
HK and China Mini Conference (16 May in HK, 17 Ma