M O R G A N S T A N L E Y R E S E A R C H Companies Featured , ,
Asia/Pacific Morning Meeting Summary The Morning Call Macau Gaming & Property / Positive bias remains Mahindra & Mahindra (India) / Asset-rich Play on Rural Consumption, Remain OW LG Display (S. Korea) / Data Points Stabilizing Company/Industry Analysis Pudong Development Bank (China) / Quick Comment: Share Placement Approved, In Line with Expectation Tingyi (Cayman Islands) (China) / Limited Impact from Disposal of Subsidiaries and AIB Share Transfer Texwinca Holdings Ltd. (Hong Kong) / Quick Comment: Acquires Additional 10% Equity Stake in the Retail Yue Yuen Industrial (Hong Kong) / First Read on 3QF10 Results Sun Pharmaceutical Industries (India) / Taxotere and Taro Drive Our Upgrade to OW, PT Rs2,305 China Clean Energy / Golden Sun: Revised Version …Likely Improving IRRs Strategy/Economics Analysis Economics / China Economics Chartbook : Goldilocks on Track Stock Rating Changes - Upgrades Stock Rating Price Target ModelWare Estimate Ticker Company Consensus*
Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision.
For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report. += Analysts employed by non-U.S. affiliates are not registered with FINRA, may not be associated persons of the member and may not be subject to NASD/NYSE restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. M O R G A N S T A N L E Y R E S E A R C H September 29, 2010 Asia/Pacific Morning Meeting Summary Stock Rating Changes - Downgrades Estimates/Price Target Changes - Up Estimates/Price Target Changes - Down
* First Call consensus estimate. For valuation methodology and risks associated with any price targets above, please email firstname.lastname@example.org with a requestfor valuation methodology and risks on a particular stock.Macau Gaming & Property: Positive bias remains Macau Gaming & Property: Attractive
Raise our 2010 Macau revenue growth estimate to 52%; Retain Attractive industry view.
The secular theme of limited table supply over the next couple of years, limited impact from
Singapore casinos and easier credit conditions should continue to drive meaningful EBITDA
growth of 77%/14% for the industry in 2010/11e. We raise our 2010e EBITDA by 0–15% for the
companies in our coverage, and lift our price target by 11% to 29%.
SJM (0880.HK, HK$8.74, O) still our top pick; In our Asia Pacific Best Ideas List. We believe
SJM and MPEL (MPEL.O, US$5.24, O) could provide meaningful upside near term. Wynn
(1128.HK, HK$13.52, O) could see potential value creation through the Cotai project. We rate
Sands China (1928.HK, HK$13.36), and Melco (0200.HK, HK$4.03) Equal-weight and
downgrade Galaxy (0027.HK, HK$6.87) to Equal-weight on valuation. (See our published report
Near-term data points should remain positive. Our view is based on strong visitor numbers
during mid-autumn festival and Golden Week in October. Meanwhile, we cite some risks
including, a significant rise in credit provided by casino operators and external funds that could
evaporate at times of credit tightening or interest rate hikes.
MAHM.BO, Mahindra & Mahindra (Rs694.15) /Asset-rich Play on Rural Rating: Overweight India Four-Wheelers: Commercial Consumption, Remain OW Vehicles: Cautious
Morgan Stanley India Company Private Limited
52-Week Range: Rs744.70-423.50 Mkt. Cap(mn): Rs398,466 Rural Going Strong: With a favorable monsoon trend playing out and healthy government ModelWare EPS: Rs50.29 (FY 3/'11),
projections with regard to food grain production, we believe the outlook for the rural economy is
favorable. Given 70% of its portfolio has rural exposure, we believe that M&M is well placed to
M O R G A N S T A N L E Y R E S E A R C H September 29, 2010 Asia/Pacific Morning Meeting Summary
benefit from strong semi-urban/rural consumption growth.
Reiterate Overweight. Our call reflects improved business profitability outlook, which leads us to
raise our standalone earnings by 16%/15% in FY11 and FY12. We also highlight its pipeline of
new launches, competitive strength across segments, and attractive valuation.
Alphawise farmer’s survey supports our positive outlook on farm incomes: Our Alphawise
team conducted a survey among 500 farmers and the key takeaways with regard to M&M
include: 1) Farmers expect higher farm incomes in F2011, implying healthy consumption trend;
and 2) One-third of farmers point out that labor shortage is a key concern. We believe the current
labor shortage could lead to increasing mechanization at farms, thereby benefiting M&M’s farm
034220.KS, LG Display (W37,600) /Data Points Stabilizing Rating: Overweight S. Korea Hardware Components: In-Line
Morgan Stanley & Co. International plc, Seoul Branch
Keon.Han@morganstanley.com, Young.Shin, Mike.Chung
52-Week Range: W48,100-28,100 Mkt. Cap(bn): W13,454 Reiterate Overweight. August QTD, LGD remained profitable at W220 bn operating profit. In ModelWare EPS: W3,633 (FY 12/'10),
September, panel pricing deteriorated more sharply, thus likely driving monthly losses. But, we
see almost no risk of 3Q operating profit dipping into loss territory. This soft landing in OPM, end
market signals of improving inventory conditions and evidence of stronger panel order pick-up
served as a catalyst for the stock to run up 16% during the past several weeks.
September utilization rate up to 93%, a 3% MoM increase. Increased production stems from
some major Chinese TV makers signaling better inventory levels, thus willing to stock more TVs
for the current long string of major holidays. In addition, the sharp rate of TV panel price decline
has begun to taper. Despite this, LGD did make a tactical mistake of over-building LED related
component inventory in 2Q10. Falling values of both LCD modules and components mean
inventory devaluation and write-offs. This, in addition to our lower ASP assumption, leads us to
lower 2010 earnings by 26% and 2011 by 10%.
Sharp run-up in a short period could signal a stock is poised for a breather near term. We
think the next catalysts are confirmation that China inventory is clearing during the holiday
season, panels prices stabilizing then rising by 1Q11, and panel orders strengthening on new
600000.SS, Pudong Development Bank (Rmb12.93) /Quick Comment: Share Rating: Equal-weight Target: Rmb16.17 Placement Approved, In Line with Expectation China Banks: In-Line
Minyan.Liu@morganstanley.com, Katherine.Lei, Jocelyn.Yang
52-Week Range: Rmb18.91-12.87 Mkt. Cap(mn): Rmb114,175 All obstacles cleared. Pudong Bank posted on its website that the CSRC has approved its ModelWare EPS: Rmb1.79 (FY 12/'10),
directional placement of up to 2.87bn new shares to China Mobile. With the last regulatory
uncertainty lifted, we believe the placement will likely occur soon.
Capital cloud lifted. A post-placement Tier 1 ratio of ~10.5% would enable Pudong to take on
more risk-weighted assets and improve profitability, and Pudong would be in a stronger capital
position than other mid-sized peers. Although we estimate there would be 25% dilution to current
shareholders and ROE would be down by c3%, we believe the positives on capital outweigh
negatives due to dilution. However, this positive is largely in the price, in our view.
New shares issued at 6% premium, a minor positive: According to the initial announcement in M O R G A N S T A N L E Y R E S E A R C H September 29, 2010 Asia/Pacific Morning Meeting Summary
March, Pudong intended to issue 2,208mn new shares at Rmb18.03/share, and these conditions
are subject to adjustments for dividend. Pudong announced a cash dividend of Rmb0.15 per
share and a stock dividend of 3 shares for every 10 in June. Ex-rights, we estimate the company
to place 2.87bn shares at Rmb13.75/share. Total proceeds should be roughly the same, but our
estimate of the new issue price represents a 6% premium to the September 27 closing price.
0322.HK, Tingyi (Cayman Islands) (HK$21.50) /Limited Impact from Disposal of Rating: Equal-weight Target: HK$18.50 Subsidiaries and AIB Share Transfer China Food, Bev. & Tobacco: Attractive 52-Week Range: HK$21.60-15.14 Mkt. Cap(mn): HK$120,335 Neutral on disposal of two raw material subsidiaries: Tingyi will sell its 40.8% stake in ModelWare EPS: HK$0.58 (FY 12/'10),
Tingzheng (packaging materials) for US$84.4 mn, and a 51% stake in Ting Feng (modified potato
starch & seasoning flavors) for US$13.9 mn to the major shareholders, the Wei family. Tingyi
looks to focus on its major downstream products. The two companies would remain Tingyi’s
suppliers; pricing would be market-driven and comparable to what other suppliers offer
We see little impact on Tingyi from the two announcements. Disposing of two subsidiaries/
associates may increase our 2011 earnings estimate by ~4%. Asahi-Itochu Beverage’s 8%
share transfer to Ting Hsin does not affect the listco. We maintain our Equal-weight rating on
Financial impact: If the deal goes through in 1H11 as the company expects, we see ~4% upside
to our 2011 net profit forecast after considering the following: (+) Disposal gain of US$36.09 mn
would boost our 2011 net profit by ~5.5% (after tax); and (-) Absence of profit contribution from
the two (US$10mn in 2009) would decrease our 2011 net profit by ~1.5%.
HONG KONG 0321.HK, Texwinca Holdings Ltd. (HK$9.39) /Quick Comment: Acquires Rating: Equal-weight Hong Kong Consumer: Attractive Additional 10% Equity Stake in the Retail Business Target: HK$7.80
52-Week Range: HK$9.84-6.02 Mkt. Cap(mn): HK$12,560 Incremental earnings impact long term, but limited on F2011e. Texwinca announced that it ModelWare EPS: HK$0.79 (FY 3/'11),
would acquire an additional 10% stake in Baleno (the retail business) from GML (5%) and WCL
(5%), lifting its total interest to 64%. We are positive on the transaction. The retail business has
been recovering since F2H10, with operating margin improving to 8% from low-to-mid single
digits in previous years. We also believe profitability of the retail business will further improve,
benefiting from prior initiatives on store rationalization.
Consideration: The total consideration is HK$203.3mn: 1) cash consideration of HK$60.88mn;
and 2) new 16mn share (1.18% of enlarged O/S shares) placement at HK$8.9. The transaction
implies a F10 P/E of 10x. The retail business recorded net profit after tax of HK$67mn and
HK$205mn in F2009 and F2010, respectively.
Latest operation update: In the textile business, YTD F2011, ASP has increased by 10%-plus,
mainly driven by the surge in cotton price. Management believes cost pressures can be fully
passed onto customers given their strong bargaining power as a leading textile manufacturer.
Capacity has expanded 15% YoY, while the utilization rate is stable at 93%.
0551.HK, Yue Yuen Industrial (HK$28.85) /First Read on 3QF10 Results Rating: Overweight Hong Kong Consumer: Attractive
Angela.Moh@morganstanley.com, Rob.Lin, Jessica.JJ.Wang
52-Week Range: HK$30.25-20.00 Mkt. Cap(mn): US$6,151 F3Q net profit down 7% YoY and 3.7% below our forecasts. Excluding the impairment loss of ModelWare EPS: 0.26US$ (FY 9/'10),
interests in JCEs and the fair value change on the derivatives, F3Q net profit grew by 4% YoY to
US$146mn, or 4% better than our estimate. While overall sales of US$1,547mn were in line,
M O R G A N S T A N L E Y R E S E A R C H September 29, 2010 Asia/Pacific Morning Meeting Summary
gross margin was slightly below expectations but offset by lower-than-expected operating
expense. For the first 11 months of F2010 the company reported total sales growth of 13.6% to
US$5,263mn, tracking ahead of our full-year estimate. However, gross margin is still under
pressure due to rising input costs and, as such, we leave our earnings forecasts unchanged.
F3Q sales surged 22% to US$1,547mn, in line with our forecast. Strong sales growth was
driven by both manufacturing business and retail business. Manufacturing (YY ex PS) sales were
up by 21%, mainly helped by volume growth of 22%.
Retail sales up 25% YoY. This was mainly helped by consolidation of one of its associates,
Dongzhjie, that became effective July 2009. Excluding regional JCEs and associates, the
company ended with 2,293 directly managed stores compared to 2,272 at end-F2Q10.
SUN.BO, Sun Pharmaceutical Industries (Rs1,968.50) /Taxotere and Taro Drive Rating: Overweight India Pharmaceuticals: In-Line Our Upgrade to OW, PT Rs2,305 Target: Rs2,305.00
Morgan Stanley India Company Private Limited
52-Week Range: Rs1,984.70-1,298.95
Mkt. Cap(mn): Rs407,717 ModelWare EPS: Rs79.29 (FY 3/'11), Strong business fundamentals, earnings momentum drive upgrade. We believe Taxotere
could be a significant and quality (long window of monetization) opportunity that Sun could
monetize earlier than our/Street expectations. Recent Taro acquisition could support mid term
growth for Sun as well. Our new price target of Rs2,305 implies 17% upside to CMP.
What's new: US District Court has ruled in favour of Hospira and Apotex and invalidated two
Taxotere ($1.2 bn sales) patents (‘561 and ‘512) for obviousness, inequitable conduct and
indefiniteness (though both were ruled to infringe). Given that Sun is also litigated on the same
patents (and not on other two OB patents), potentially it could launch (subject to NDA approval)
as early as November 14, (compound patent expires), within 30 months of its NDA filing.
Importantly, only Sun and Hospira have tentative approval and only two additional players
What’s not in the price. Taxotere upside, mid to longer term Taro synergy benefits and other
niche opportunities (Prandin, Azelastine nasal spray etc) do not appear to be priced in the stock.
Taxotere ANDA approval (and launch), resolution of CPD’s FDA issues, market share trends in
the US (for Exelon, bupropion, Optivar, Effexor XR tabs etc) and new complex generic filings are
SINGAPORE China Clean Energy: Golden Sun: Revised Version …Likely Improving IRRs China Clean Energy: In-Line
Overview. Following the Golden Sun program launch in mid 2009 and 642MW demonstration
project approval in November 2009, the Ministry of Finance and Ministry of Housing and
Urban-Rural Development jointly released a revised version.
Impact on our view. China’s central government has now coordinated with various ministries
and local governments, laying out a revised Golden Sun Program. The major change is that
module/inverter/battery producers need to win the centralized bidding process to supply to
Golden Sun projects. The bid pricing could be very competitive and thus project IRR could
improve to 5% from low single digits. We forecast China demand of 840MW in F2011, contributed
M O R G A N S T A N L E Y R E S E A R C H September 29, 2010 Asia/Pacific Morning Meeting Summary
mainly from various demonstration projects and local government support, as we do not see a
national level of Feed-in Tariff to materialize near term.
Key changes: 1) Module, inverter and storage battery suppliers now need to go through
centralized bidding program to supply products; 2) Upfront subsidy is 50% and 70% of key
component investment cost (about 85% of total cost) for on-grid and off-grid projects; 3) Fixed
subsidy of Rmb4/6/10 per Wp for on-grid system/BIPV/off-grid projects; 4) Larger size of
installation (at least 10MW) with grid connection is encouraged.
Economics/China Economics Chartbook: Goldilocks on Track
Qing.Wang@morganstanley.com, Ernest.Ho, Steven.Zhang
August Economic Data: Better than expected. Despite intensifying supply-side adjustment to
shut energy-inefficient enterprises and measures against property speculation, August economic
data were better than expected, with industrial production and fixed asset investment posting a
modest rebound. Retails sales remained robust on improved consumer confidence and a
relatively tight labor market. While CPI inflation hit a post-financial crisis high on the back of rising
food prices, PPI inflation softened to its lowest reading this year.
Implications for economic and policy outlook near term. The visible softening in policy tone
since July has already served to boost sentiment and confidence, which in our view, helps to
explain the modest acceleration in bank lending and M2 growth, as well as the rebound in
investment growth. We believe CPI inflation may have peaked in August and could edge down
slowly for the rest of this year. Although industrial activity is likely to be further negatively
impacted by intensified supply-side adjustment in September, we think 3Q could be the trough for
the cycle in terms of sequential GDP growth (i.e., 8% QoQ, SAAR). We forecast a modest
sequential reacceleration in growth in 4Q (10.6% QoQ, SAAR). We maintain our forecasts of the
headline YoY GDP growth rates at 9.1% for both 3Q and 4Q.
China’s potential economic growth rate set to slow: Potential growth is a function of labor,
capital, and total factor productivity. We expect the three factors to decelerate over the coming
decade, making a sustainable level of GDP growth likely to be 8.0% per annum through 2020, in
our view. The Chinese economy is now at an inflection point and after this point is crossed, if
history is a guide, overall GDP growth tends to decelerate and inflation to accelerate. The
economic structure tends to undergo profound transformation, with the three key ratios of the
economy – consumption-GDP, service sector-GDP, and labor income-GDP – rising rapidly.
However, as a continental economy with vast disparity among regions, China’s economic
evolution is likely to be more gradual and over a more extended period than those of its East
M O R G A N S T A N L E Y R E S E A R C H September 29, 2010 Asia/Pacific Morning Meeting Summary Disclosure Section
The information and opinions in Morgan Stanley Research were prepared or are disseminated by Morgan Stanley Asia Limited (which accepts the responsibility for its contents) and/or Morgan Stanley Asia (Singapore) Pte. (Registration number 199206298Z, regulated by the Monetary Authority of Singapore, which accepts the responsibility for its contents), and/or Morgan Stanley Asia (Singapore) Securities Pte Ltd (Registration number 200008434H, regulated by the Monetary Authority of Singapore, which accepts the responsibility for its contents), and/or Morgan Stanley Taiwan Limited and/or Morgan Stanley & Co International plc, Seoul Branch, and/or Morgan Stanley Australia Limited (A.B.N. 67 003 734 576, holder of Australian financial services license No. 233742, which accepts responsibility for its contents), and/or Morgan Stanley Smith Barney Australia Pty Ltd (A.B.N. 19 009 145 555, holder of Australian financial services license No. 240813, which accepts responsibility for its contents), and/or Morgan Stanley India Company Private Limited and their affiliates (collectively, "Morgan Stanley"). For important disclosures, stock price charts and equity rating histories regarding companies that are the subject of this report, please see the Morgan Stanley Research Disclosure Website at www.morganstanley.com/researchdisclosures, or contact your investment representative or Morgan Stanley Research at 1585 Broadway, (Attention: Research Management), New York, NY, 10036 USA. Analyst Certification
As to each company mentioned in this report, the respective primary research analyst or analysts covering that company hereby certify that their views about the companies and their securities discussed in this report are accurately expressed and that they have not received and will not receive direct or indirect compensation in exchange for expressing specific recommendations or views in this report. Global Research Conflict Management Policy
Morgan Stanley Research has been published in accordance with our conflict management policy, which is available at www.morganstanley.com/institutional/research/conflictpolicies. Important US Regulatory Disclosures on Subject Companies
As of August 31, 2010, Morgan Stanley beneficially owned 1% or more of a class of common equity securities of the following companies covered in Morgan Stanley Research: LG Display. Within the last 12 months, Morgan Stanley managed or co-managed a public offering (or 144A offering) of securities of China Mobile Limited, Wynn Macau, Limited. Within the last 12 months, Morgan Stanley has received compensation for investment banking services from Wynn Macau, Limited. In the next 3 months, Morgan Stanley expects to receive or intends to seek compensation for investment banking services from China Mobile Limited, LG Display, LG Electronics, Mahindra & Mahindra, Pudong Development Bank, Sun Pharmaceutical Industries, Wynn Macau, Limited, Yue Yuen Industrial. Within the last 12 months, Morgan Stanley has received compensation for products and services other than investment banking services from LG Display, LG Electronics. Within the last 12 months, Morgan Stanley has provided or is providing investment banking services to, or has an investment banking client relationship with, the following company: China Mobile Limited, LG Display, LG Electronics, Mahindra & Mahindra, Pudong Development Bank, Sun Pharmaceutical Industries, Wynn Macau, Limited, Yue Yuen Industrial. Within the last 12 months, Morgan Stanley has either provided or is providing non-investment banking, securities-related services to and/or in the past has entered into an agreement to provide services or has a client relationship with the following company: LG Display, LG Electronics, Pudong Development Bank, Yue Yuen Industrial. Morgan Stanley & Co. Incorporated makes a market in the securities of Melco Crown Entertainment Ltd. The equity research analysts or strategists principally responsible for the preparation of Morgan Stanley Research have received compensation based upon various factors, including quality of research, investor client feedback, stock picking, competitive factors, firm revenues and overall investment banking revenues. Morgan Stanley and its affiliates do business that relates to companies/instruments covered in Morgan Stanley Research, including market making, providing liquidity and specialized trading, risk arbitrage and other proprietary trading, fund management, commercial banking, extension of credit, investment services and investment banking. Morgan Stanley sells to and buys from customers the securities/instruments of companies covered in Morgan Stanley Research on a principal basis. Morgan Stanley may have a position in the debt of the Company or instruments discussed in this report. Certain disclosures listed above are also for compliance with applicable regulations in non-US jurisdictions. STOCK RATINGS Morgan Stanley uses a relative rating system using terms such as Overweight, Equal-weight, Not-Rated or Underweight (see definitions below). Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of buy, hold and sell. Investors should carefully read the definitions of all ratings used in Morgan Stanley Research. In addition, since Morgan Stanley Research contains more complete information concerning the analyst's views, investors should carefully read Morgan Stanley Research, in its entirety, and not infer the contents from the rating alone. In any case, ratings (or research) should not be used or relied upon as investment advice. An investor's decision to buy or sell a stock should depend on individual circumstances (such as the investor's existing holdings) and other considerations. Global Stock Ratings Distribution (as of August 31, 2010) For disclosure purposes only (in accordance with NASD and NYSE requirements), we include the category headings of Buy, Hold, and Sell alongside our ratings of Overweight, Equal-weight, Not-Rated and Underweight. Morgan Stanley does not assign ratings of Buy, Hold or Sell to the stocks we cover. Overweight, Equal-weight, Not-Rated and Underweight are not the equivalent of buy, hold, and sell but represent recommended relative weightings (see definitions below). To satisfy regulatory requirements, we correspond Overweight, our most positive stock rating, with a buy recommendation; we correspond Equal-weight and Not-Rated to hold and Underweight to sell recommendations, respectively. M O R G A N S T A N L E Y R E S E A R C H September 29, 2010 Asia/Pacific Morning Meeting Summary
Data include common stock and ADRs currently assigned ratings. An investor's decision to buy or sell a stock should depend on individual circumstances (such as the investor's existing holdings) and other considerations. Investment Banking Clients are companies from whom Morgan Stanley received investment banking compensation in the last 12 months. Analyst Stock Ratings Overweight (O or Over) - The stock's total return is expected to exceed the total return of the relevant country MSCI Index, on a risk-adjusted basis over the next 12-18 months. Equal-weight (E or Equal) - The stock's total return is expected to be in line with the total return of the relevant country MSCI Index, on a risk-adjusted basis over the next 12-18 months. Not-Rated (NR) - Currently the analyst does not have adequate conviction about the stock's total return relative to the relevant country MSCI Index on a risk-adjusted basis, over the next 12-18 months. Underweight (U or Under) - The stock's total return is expected to be below the total return of the relevant country MSCI Index, on a risk-adjusted basis, over the next 12-18 months. Unless otherwise specified, the time frame for price targets included in Morgan Stanley Research is 12 to 18 months. Analyst Industry Views Attractive (A): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be attractive vs. the relevant broad market benchmark, as indicated below. In-Line (I): The analyst expects the performance of his or her industry coverage universe over the next 12-18 months to be in line with the relevant broad market benchmark, as indicated below. Cautious (C): The analyst views the performance of his or her industry coverage universe over the next 12-18 months with caution vs. the relevant broad market benchmark, as indicated below. Benchmarks for each region are as follows: North America - S&P 500; Latin America - relevant MSCI country index or MSCI Latin America Index; Europe - MSCI Europe; Japan - TOPIX; Asia - relevant MSCI country index. . Important Disclosures for Morgan Stanley Smith Barney LLC Customers Citi Investment Research & Analysis (CIRA) research reports may be available about the companies or topics that are the subject of Morgan Stanley Research. Ask your Financial Advisor or use Research Center to view any available CIRA research reports in addition to Morgan Stanley research reports. Important disclosures regarding the relationship between the companies that are the subject of Morgan Stanley Research and Morgan Stanley Smith Barney LLC, Morgan Stanley and Citigroup Global Markets Inc. or any of their affiliates, are available on the Morgan Stanley Smith Barney disclosure website at www.morganstanleysmithbarney.com/researchdisclosures. For Morgan Stanley and Citigroup Global Markets, Inc. specific disclosures, you may refer to www.morganstanley.com/researchdisclosures and https://www.citigroupgeo.com/geopublic/Disclosures/index_a.html. Each Morgan Stanley Equity Research report is reviewed and approved on behalf of Morgan Stanley Smith Barney LLC. This review and approval is conducted by the same person who reviews the Equity Research report on behalf of Morgan Stanley. This could create a conflict of interest. Other Important Disclosures Morgan Stanley & Co. International PLC and its affiliates have a significant financial interest in the debt securities of China Mobile Limited, LG Display, LG Electronics, Mahindra & Mahindra. Morgan Stanley produces an equity research product called a "Tactical Idea." Views contained in a "Tactical Idea" on a particular stock may be contrary to the recommendations or views expressed in research on the same stock. This may be the result of differing time horizons, methodologies, market events, or other factors. For all research available on a particular stock, please contact your sales representative or go to Client Link at www.morganstanley.com. Morgan Stanley Research does not provide individually tailored investment advice. Morgan Stanley Research has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial adviser. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. The securities, instruments, or strategies discussed in Morgan Stanley Research may not be suitable for all investors, and certain investors may not be eligible to purchase or participate in some or all of them. The fixed income research analysts or strategists principally responsible for the preparation of Morgan Stanley Research have received compensation based upon various factors, including quality, accuracy and value of research, firm profitability or revenues (which include fixed income trading and capital markets profitability or revenues), client feedback and competitive factors. Fixed Income Research analysts' or strategists' compensation is not linked to investment banking or capital markets transactions performed by Morgan Stanley or the profitability or revenues of particular trading desks. Morgan Stanley Research is not an offer to buy or sell or the solicitation of an offer to buy or sell any security/instrument or to participate in any particular trading strategy. The "Important US Regulatory Disclosures on Subject Companies" section in Morgan Stanley Research lists all companies mentioned where Morgan Stanley owns 1% or more of a class of common equity securities of the companies. For all other companies mentioned in Morgan Stanley Research, Morgan Stanley may have an investment of less than 1% in securities/instruments or derivatives of securities/instruments of companies and may trade them in ways different from those discussed in Morgan Stanley Research. Employees of Morgan Stanley not involved in the preparation of Morgan Stanley Research may have investments in securities/instruments or derivatives of securities/instruments of companies mentioned and may trade them in ways different from those discussed in Morgan Stanley Research. Derivatives may be issued by Morgan Stanley or associated persons. With the exception of information regarding Morgan Stanley, Morgan Stanley Research is based on public information. Morgan Stanley makes every effort to use reliable, comprehensive information, but we make no representation that it is accurate or complete. We have no obligation to tell you when opinions or information in Morgan Stanley Research change apart from when we intend to discontinue equity research coverage of a subject company. Facts and views presented in Morgan Stanley Research have not been reviewed by, and may not reflect information known to, professionals in other Morgan Stanley business areas, including investment banking personnel. Morgan Stanley Research personnel may participate in company events such as site visits and are generally prohibited from accepting payment by the company of associated expenses unless pre-approved by authorized members of Research management. The value of and income from your investments may vary because of changes in interest rates, foreign exchange rates, default rates, prepayment rates, securities/instruments prices, market indexes, operational or financial conditions of companies or other factors. There may be time limitations on the exercise of options or other rights in securities/instruments transactions. Past performance is not necessarily a guide to future performance. Estimates of future performance are based on assumptions that may not be realized. If provided, and unless otherwise stated, the closing price on the cover page is that of the primary exchange for the subject company's securities/instruments. Morgan Stanley may make investment decisions or take proprietary positions that are inconsistent with the recommendations or views in this report. To our readers in Taiwan: Information on securities/instruments that trade in Taiwan is distributed by Morgan Stanley Taiwan Limited ("MSTL"). Such information is for your reference only. Information on any securities/instruments issued by a company owned by the government of or incorporated in the PRC and listed in on the Stock Exchange of Hong Kong ("SEHK"), namely the H-shares, including the component company stocks of the Stock Exchange of Hong Kong ("SEHK")'s Hang Seng China Enterprise Index; or any securities/instruments issued by a company that is 30% or more directly- or indirectly-owned by the government of or a company incorporated in the PRC and traded on an exchange in Hong Kong or Macau, namely SEHK's Red Chip shares, including the component company of the SEHK's China-affiliated Corp Index is distributed only to Taiwan Securities Investment Trust Enterprises ("SITE"). The reader should independently evaluate the investment risks and is solely responsible for their investment decisions. Morgan Stanley Research may not be distributed to the public media or quoted or used by the public media without the express written consent of Morgan Stanley. Information on securities/instruments that do not trade in Taiwan is for informational purposes only and is not to be construed as a recommendation or a solicitation to trade in such securities/instruments. MSTL may not execute transactions for clients in these securities/instruments. M O R G A N S T A N L E Y R E S E A R C H September 29, 2010 Asia/Pacific Morning Meeting Summary
To our readers in Hong Kong: Information is distributed in Hong Kong by and on behalf of, and is attributable to, Morgan Stanley Asia Limited as part of its regulated activities in Hong Kong. If you have any queries concerning Morgan Stanley Research, please contact our Hong Kong sales representatives. Certain information in Morgan Stanley Research was sourced by employees of the Shanghai Representative Office of Morgan Stanley Asia Limited for the use of Morgan Stanley Asia Limited. Morgan Stanley Research is disseminated in Japan by Morgan Stanley MUFG Securities Co., Ltd.; in Hong Kong by Morgan Stanley Asia Limited (which accepts responsibility for its contents); in Singapore by Morgan Stanley Asia (Singapore) Pte. (Registration number 199206298Z) and/or Morgan Stanley Asia (Singapore) Securities Pte Ltd (Registration number 200008434H), regulated by the Monetary Authority of Singapore, which accepts responsibility for its contents; in Australia to "wholesale clients" within the meaning of the Australian Corporations Act by Morgan Stanley Australia Limited A.B.N. 67 003 734 576, holder of Australian financial services license No. 233742, which accepts responsibility for its contents; in Australia to "wholesale clients" and "retail clients" within the meaning of the Australian Corporations Act by Morgan Stanley Smith Barney Australia Pty Ltd (A.B.N. 19 009 145 555, holder of Australian financial services license No. 240813, which accepts responsibility for its contents; in Korea by Morgan Stanley & Co International plc, Seoul Branch; in India by Morgan Stanley India Company Private Limited; in Canada by Morgan Stanley Canada Limited, which has approved of, and has agreed to take responsibility for, the contents of Morgan Stanley Research in Canada; in Germany by Morgan Stanley Bank AG, Frankfurt am Main and Morgan Stanley Private Wealth Management Limited, Niederlassung Deutschland, regulated by Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin); in Spain by Morgan Stanley, S.V., S.A., a Morgan Stanley group company, which is supervised by the Spanish Securities Markets Commission (CNMV) and states that Morgan Stanley Research has been written and distributed in accordance with the rules of conduct applicable to financial research as established under Spanish regulations; in the United States by Morgan Stanley & Co. Incorporated, which accepts responsibility for its contents. Morgan Stanley & Co. International plc, authorized and regulated by the Financial Services Authority, disseminates in the UK research that it has prepared, and approves solely for the purposes of section 21 of the Financial Services and Markets Act 2000, research which has been prepared by any of its affiliates. Morgan Stanley Private Wealth Management Limited, authorized and regulated by the Financial Services Authority, also disseminates Morgan Stanley Research in the UK. Private U.K. investors should obtain the advice of their Morgan Stanley & Co. International plc or Morgan Stanley Private Wealth Management representative about the investments concerned. RMB Morgan Stanley (Proprietary) Limited is a member of the JSE Limited and regulated by the Financial Services Board in South Africa. RMB Morgan Stanley (Proprietary) Limited is a joint venture owned equally by Morgan Stanley International Holdings Inc. and RMB Investment Advisory (Proprietary) Limited, which is wholly owned by FirstRand Limited. The information in Morgan Stanley Research is being communicated by Morgan Stanley & Co. International plc (DIFC Branch), regulated by the Dubai Financial Services Authority (the DFSA), and is directed at Professional Clients only, as defined by the DFSA. The financial products or financial services to which this research relates will only be made available to a customer who we are satisfied meets the regulatory criteria to be a Professional Client. The information in Morgan Stanley Research is being communicated by Morgan Stanley & Co. International plc (QFC Branch), regulated by the Qatar Financial Centre Regulatory Authority (the QFCRA), and is directed at business customers and market counterparties only and is not intended for Retail Customers as defined by the QFCRA. As required by the Capital Markets Board of Turkey, investment information, comments and recommendations stated here, are not within the scope of investment advisory activity. Investment advisory service is provided in accordance with a contract of engagement on investment advisory concluded between brokerage houses, portfolio management companies, non-deposit banks and clients. Comments and recommendations stated here rely on the individual opinions of the ones providing these comments and recommendations. These opinions may not fit to your financial status, risk and return preferences. For this reason, to make an investment decision by relying solely to this information stated here may not bring about outcomes that fit your expectations. The trademarks and service marks contained in Morgan Stanley Research are the property of their respective owners. Third-party data providers make no warranties or representations of any kind relating to the accuracy, completeness, or timeliness of the data they provide and shall not have liability for any damages of any kind relating to such data. The Global Industry Classification Standard ("GICS") was developed by and is the exclusive property of MSCI and S&P. Morgan Stanley has based its projections, opinions, forecasts and trading strategies regarding the MSCI Country Index Series solely on publicly available information. MSCI has not reviewed, approved or endorsed the projections, opinions, forecasts and trading strategies contained herein. Morgan Stanley has no influence on or control over MSCI's index compilation decisions. Morgan Stanley Research, or any portion thereof may not be reprinted, sold or redistributed without the written consent of Morgan Stanley. Morgan Stanley Research is disseminated and available primarily electronically, and, in some cases, in printed form. Additional information on recommended securities/instruments is available on request.
M O R G A N S T A N L E Y R E S E A R C H The Americas Asia/Pacific United States United Kingdom Hong Kong
This e-newsletter presents reviews of important, recently published scientific articles selected by members of The North American Menopause Society (NAMS), the leading nonprofit scientific organization dedicated to improving women’s health and quality of life through an understanding of menopause. Each has a commentary from a recognized expert that addresses the clinical relevance of the item.