Earning Release

Although LG Display Co., Ltd.’s (NYSE:LPL) reported 4Q 08 revenues were above our expectations, significant pricing pressure prevailing in the Liquid Crystal Display (LCD) panel industry eroded operating efficiencies during the quarter. In addition, the company’s bottom-line was negatively impacted by provision for a US$400 mn fine related to an antitrust investigation. Management guidance for 1Q 09 is relatively weak and we continue to expect a weak LCD panel market to negatively impact the financial performance of the company over the coming quarters. In light of this, although the common stock target price does not support a HOLD rating at current price levels, we maintain our HOLD rating and will reassess our target price and rating in our 4Q 08 and FY 2008 update report. As we continue to expect a negative currency impact on LPL’s ADR, in addition to our weak fundamental outlook, we do not anticipate a change to our current SELL rating for the ADR. We will reassess our target price and rating in our 4Q 08 and FY 2008 update report.

News

Aegon N.V.’s (Aegon N.V) common stock has declined significantly since we had downgraded our rating for the common stock from a BUY to a HOLD in our company news alert dated 10 December 2008, which we believe reflects ongoing volatility and weakness in equity indices coupled with poor economic conditions. However, we are encouraged by the company’s strong core capital position and its cost control measures taken to improve its bottom-line performance. Moreover, the company continues to expand its business in emerging economies like India and China, which we believe will boost the company’s premium income going forward. Consequently, we believe the common stock offers an attractive investment opportunity at current levels and, therefore, upgrade the common stock from a HOLD to a BUY at current levels. We will reassess our target price and rating in our next update report, once the company announces its 4Q 08 and FY 2008 results. As we continue to expect a negative currency impact on the ADR over our investment horizon and as our target price no longer supports a SELL rating at current price levels, we are upgrading the ADR from a SELL to a HOLD. We will reassess our target price and rating for the ADR (1 ADR= 1 common stock) in our next update report, once the company announces its 4Q 08 and FY 2008 results.

Barclays PLC’s (NYSE:BCS) common stock has depreciated significantly since our previous update report, reflecting ongoing weakness in the UK economy coupled with volatility in the banking sector despite the UK government’s bailout package and loan guarantee schemes. Moreover, the bank also plans to cut 2,100 jobs from its investment banking, fund management and private banking units. Therefore, although our current target price no longer supports a HOLD rating, we reiterate the common stock a HOLD. We will reassess our target price and rating in our next update report, after the company releases its FY 2008 results. As we continue to expect a negative currency impact on the ADR and as our outlook for the company remains weak, we maintain our SELL rating for ADR although the target price no longer supports a SELL. We will reassess the ADR (1 ADR = 4 common shares) rating after the company releases its FY 2008 results.

China Unicom (Hong Kong) Ltd’s (NYSE:CHU) common stock has declined significantly since our last update report dated 12 November 2008, primarily reflecting investor concerns over increased competition and spending in the market after the issuance of 3G license to Chinese telecom companies. In addition, the downward movement in the stock price follows a broader downward trend in the Chinese stock market. However, as we believe that at current levels the common stock offers an attractive investment opportunity we are upgrading the common stock from a HOLD to BUY and will reassess our target price and rating in our next update report, once the company issues FY 2008 results. As the ADR target price supports a BUY rating, we upgrade our ADR rating from a HOLD to a BUY. The Hong Kong dollar is pegged to the US dollar. We will reassess our target price and rating in our next update report, once the company releases its FY 2008 results.

XL Capital Ltd.’s (NYSE:XL) NYSE common stock price has depreciated significantly since our last update report dated 19 December 2008, reflecting ongoing volatility and weakness in global financial markets. However, as we believe that the company has sufficient cash to sustain itself in the event of losses arising from hurricanes and investments, we maintain our BUY rating for the NYSE common stock. We will reassess our NYSE common stock rating for XL Capital once the company announces its 4Q 08 and FY 2008 results on 05 February 2009. As we expect a significant positive currency impact over the medium term, we maintain our BUY rating for the European stock at current levels. We will reassess the European stock rating for XL Capital in our next full update report.

On 15 December 2008, HSBC Holdings PLC (NYSE:HBC) confirmed earlier media reports that it has around US$1 bn in exposure to Bernard L. Madoff Investment Securities LLC’s (Madoff) investment funds. Considering this, as well as our ongoing concerns about the impact of the slowing global economy on impairment charges, we maintain our HOLD rating for the ADR. The Hong Kong dollar is pegged to the US dollar. Therefore, the impact of currency movements on the common stock is assumed be neutral. In line with our fundamental outlook, we maintain our HOLD rating.

Ricoh Company Ltd.’s (OTC:RICOY) common stock price achieved our target price on 15 January 2009. We believe Ricoh’s common stock price decline is primarily attributable to weak economic data released by the Bank of Japan on the same day. Therefore, in anticipation of further weakness in global economic conditions, we believe export demand and industrial production in Japan will be negatively impacted, in line with our weak revenue and profitability outlook for the company over the medium term. Hence, although the common stock target price does not support a SELL rating at current price levels, we maintain our SELL rating and will reassess our target price and rating in our next update report, once the company issues its 3Q 09 results. We maintain our BUY rating for the ADR based on our expectation of a positive currency impact over the medium term. We will reassess our target price and rating in our next update report, once the company issues its 3Q 09 results.

Desarrolladora Homex S.A.B. de C.V.’s (NYSE:HXM) common stock has declined substantially since our rating downgrade in our company news alert dated 06 January 2009, reflecting ongoing volatility in financial markets coupled with concerns of weakness in the homebuilding industry. However, as we anticipate that demand for affordable entry-level homes and availability of government mortgage financing in Mexico will continue to drive Homex’s growth, we now believe current price levels provide an attractive investment opportunity in the medium term. Subsequently, we upgrade the Homex common stock from a HOLD to a BUY. We will reassess the rating and target price in our next update report, after the company announces its 4Q 08 and FY 2008 results. Although we continue to expect a significant negative currency impact on the ADR over the medium term, we upgrade the ADR (1ADR = 6 Common shares) from a SELL to a HOLD based on our fundamental rating and current price levels. We will reassess the rating and target price in our next update report, after the company announces its 4Q 08 and FY 2008 results.

On 16 January 2009, Dassault Systemes S.A. (OTC:DASTY) released its preliminary non-US GAAP 4Q 08 & FY 2008 results. The final results are expected to fall short of both Management’s and our expectations, as outlined in our 3Q 08 update report, dated 10 December 2008. This is attributable to clients delaying the finalization of contracts in light of the uncertain and sluggish global macroeconomic climate in 4Q 08. However, we expect the company’s healthy recurring revenues to support the company through the current economic downturn. Therefore, we maintain our BUY rating for the common stock at current levels. We will reassess our target price and rating in our next update report, once the company releases its 4Q 08 & FY 2008. As we expect a significant negative currency impact over our investment horizon and given current price levels, we maintain our HOLD rating for the ADR. We will reassess our target price and rating in our next update report, once the company releases its 4Q 08 & FY 2008.

Koninklijke Ahold N.V.’s (AHLN.AS) 4Q 08 revenues increased, reflecting strong performances from both its US and Europe segments, driven by robust holiday sales. Going forward, we continue to expect a strong performance from the Europe retail segment, particularly the Albert Heijn category, as we believe the company’s strong market position will enable it to withstand the economic downturn. However, we remain cautious about the US retail segment (approximately 58% of total revenues) as we believe intense competition and higher unemployment rates will limit overall revenue growth. As a result, although the ADR target price does not support a HOLD rating at current price levels, we maintain our HOLD rating for the common stock and will reassess our target price and rating in our next update report, once the company issues its 4Q 08 and FY 2008 results. As we anticipate a negative currency impact over the medium term and given our fundamental outlook, we maintain our SELL rating at current levels. We will reassess the ADR (1 ADR = 1 common share) target price and rating in our next update report, once the company releases its 4Q 08 results and FY 2008 results.

On 15 January 2009, the New York State canceled a US$2.1 bn contract it had with M/A-COM, a subsidiary of Tyco Electronics Ltd. (NYSE:TEL), in light of ongoing flaws and technical problems during the testing periods. However, this will not have a material impact on our valuation of the company as we have not incorporated the contract into our financial projection. Therefore, given current price levels, we maintain our HOLD rating for the NYSE common stock. We will reassess our target price and rating in our next update report, once the company announces its 1Q 09 results. As we continue to anticipate a significant positive currency impact on the European stock over the medium term, we maintain our BUY rating at current levels. We will reassess our rating and target price in our next update report, once the company announces its 1Q 09 results.

Brookfield Properties Corporation’s (NYSE:BPO) NYSE common stock price has declined significantly since our 3Q 08 update report, dated 23 December 2008, reflecting the ongoing weakness in the US real estate sector and volatility in global equity markets. Going forward, we remain cautious about the company’s prospects over the medium term in light of the ongoing downturn in the US real estate sector. As a result, although the target price does not support a HOLD rating, we maintain a HOLD and will reassess our target price and rating in our next update report, once the company releases its 4Q 08 and FY 2008 results. As we anticipate a significant positive currency impact on the Canadian stock over the medium term, we maintain our BUY rating at current levels. We will reassess our target price and rating in our next update report, once the company announces its 4Q 08 and FY 2008 results.

Delhaize Group’s (NYSE:DEG) 4Q 08 and FY 2008 revenues were above our estimates, primarily driven by strong sales in the US. Going forward, given the company’s robust expansion plans and strong 4Q 08 and FY 2008 results, we upgrade our common stock rating from a HOLD to BUY. We will reassess our target price and rating in our next update report, once the company releases its 4Q 08 and FY 2008 results. As we expect a significant negative currency impact on the ADR over the medium term, we reiterate our SELL rating. We will reassess the target price and rating for the ADR (1 ADR = 1 common share) in our next update report, once the company releases its 4Q 08 and FY 2008 results.

The ICICI Bank Limited (NYSE:IBN) common stock has depreciated significantly since our previous news alert, reflecting a broad-based decline in Indian equity markets. Meanwhile, we are increasingly concerned about the impact of the economic slowdown in India and the prospects for growth in nonperforming assets. Therefore, even though the target price derived in our last update report does not support a HOLD, we maintain our HOLD rating. We will reassess our target price and rating in our next update report, after the company releases its 3Q 09 results. Considering our fundamental outlook and that we continue to anticipate a significant negative currency impact on the ADR over our investment horizon, we reiterate the ADR a SELL. We will reassess our ADR rating and target price in our next update report, after the company releases its 3Q 09 results.

New Valuations

In 3Q 08, UBS reported a y-o-y decrease in its Net Interest Income (NYSE:UBS), reflecting lower interest and dividend income on the trading portfolio and higher interest on financial liabilities. Coupled with lower net fees and commissions and trading losses, the group’s top-line fell y-o-y. However, due to a fall in operating expenses, the bank reported positive net income for the quarter (compared to net losses reported in 3Q 07 and 2Q 08). We anticipate a net loss overall for FY 2008, however, following further writedowns against the bank’s subprime exposure. Furthermore, as a deep global recession seems imminent in 2009, we anticipate deterioration in asset quality, which should drive up credit losses. Considering these factors, as well as a likely fall in demand for credit over the next 2 years, we maintain a cautious fundamental outlook.

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