September 13, 2010

Asia: Conviction Call Catch-up

Your 2-min refresher on our best ideas

Conviction List (CL): Performance/Changes
AEJ CL hedged performance since inception
Our Asia Ex-Japan CL (AEJ CL) and Japan CL currently consist of 78 stocks,
80%
which represent our analysts’ best ideas. For the week ended (w/e)
70%
September 10, AEJ CL generated -0.1% alpha hedged with our rated 60%

coverage universe and -0.1% hedged with MSCI AEJ (year-to-date: +3.2% 50%

and +3.7%), while Japan CL generated -0.2% alpha hedged with our rated 40%

coverage universe and was flat hedged with TOPIX (year-to-date: +0.4% 30%

and +2.5%). 20%

10%

CL additions during w/e September 10. Chimei Innolux (Buy) and Honghua 0%

Jun-06

Feb-07
Apr-07
Jun-07

Feb-08
Apr-08
Jun-08

Feb-09
Apr-09
Jun-09

Feb-10
Apr-10
Jun-10
Aug-06
Oct-06
Dec-06

Aug-07
Oct-07
Dec-07

Aug-08
Oct-08
Dec-08

Aug-09
Oct-09
Dec-09

Aug-10
(Sell) were added to the AEJ CL. JFE Holdings (Buy) was added to the
Japan CL. Specific reasons for each of these CL additions can be found by Conviction List vs. AEJ rated coverage Conviction List vs. MSCI AEJ

clicking the appropriate link in the “Latest research” section of this report. Japan CL hedged performance since inception
35%
CL removals during w/e September 10. We removed ANA (Sell) from the
30%
Japan CL due to a lack of near-term catalysts to reverse recent share price
25%

outperformance. There were no removals from the AEJ CL. 20%

15%

Director of Research (DOR) Asia Focus List: Performance/Changes 10%

5%
The DOR Asia Focus List currently consists of 16 stocks and reflects the
0%
AEJ and Japan CL stocks that research management finds most attractive
-5%
on a range of qualitative/quantitative factors. For the w/e September 10,
Jun-06
Aug-06
Oct-06
Dec-06
Feb-07

Jun-07
Aug-07
Oct-07
Dec-07
Feb-08

Jun-08
Aug-08
Oct-08
Dec-08
Feb-09

Jun-09
Aug-09
Oct-09
Dec-09
Feb-10

Jun-10
Aug-10
Apr-07

Apr-08

Apr-09

Apr-10
Focus List alpha hedged with MSCI Asia was +1.8% (year-to-date: +2.8%) Conviction List vs. Japan rated coverage Conviction List vs. TOPIX

and there were no additions or removals.

AEJ CL AEJ CL Japan CL Japan CL
hedged with hedged with hedged with hedged with
Our Focus List now consists of the following Buy-rated CL stocks: Year GS coverage MSCI AEJ GS coverage TOPIX
2006 (1) 11.1% 14.3% 8.9% 4.9%
2007 19.2% 31.7% 3.3% 0.9%
Angang Steel (A), CapitaLand, Chimei Innolux, China COSCO (A), China 2008 6.7% 4.5% 12.5% 6.7%
2009 3.9% 9.7% 2.7% 8.3%
Gas, China High Speed, CITIC Securities (A), Evergrande Real Estate, 2010 YTD 3.2% 3.7% 0.4% 2.5%
(1)
FUJIFILM, Genting Berhad, Li & Fung, Panasonic Corp., Samsung Fire & From June 23, 2006

Marine, Sumitomo Heavy, Tata Steel, and Wistron Corp. Results presented above cannot be viewed as an indicator
of future performance.

Source: Datastream, Goldman Sachs Research estimates.

Paul D. Bernard, CFA The Goldman Sachs Group, Inc. does and seeks to do business with
+852-2978-1587 paul.bernard@gs.com Goldman Sachs (Asia) L.L.C.
companies covered in its research reports. As a result, investors should be
Keith Hayes
+852-2978-1333 keith.hayes@gs.com Goldman Sachs (Asia) L.L.C. aware that the firm may have a conflict of interest that could affect the
Mike Warren
objectivity of this report. Investors should consider this report as only a single
+852-2978-1383 mike.warren@gs.com Goldman Sachs (Asia) L.L.C. factor in making their investment decision. For Reg AC certification, see the
Joy Nguyen
end of the text. Other important disclosures follow the Reg AC certification,
+852-2978-1106 joy.nguyen@gs.com Goldman Sachs (Asia) L.L.C. or go to www.gs.com/research/hedge.html. Analysts employed by non-US
affiliates are not registered/qualified as research analysts with FINRA in the
U.S.

The Goldman Sachs Group, Inc. Global Investment Research

September 13, 2010 Asia: Conviction Call Catch-up

AEJ Conviction List: Latest research, catalysts, analyst contacts

Stock Ticker Rating Link to latest research, including catalysts/valuation Analyst email Analyst tel. no.
AAC Acoustic 2018 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9590933 rob.chen@gs.com 886-2-2730-4196
ACC ACC IN Sell https://360.gs.com/gs/portal/?action=action.doc&d=9393216 pritesh.vinay@gs.com 91-22-6616-9038
Angang Steel (A) 000898 CH Buy https://360.gs.com/gs/portal?action=action.doc&d=9533643 jim.hung@ghsl.cn 86-10-6627-3191
AREIT AREIT SP Sell https://360.gs.com/gs/portal?action=action.doc&d=9228945 paul.lian@gs.com 65-6889-2464
Ashok Leyland AL IN Buy https://360.gs.com/gs/portal/?action=action.doc&d=9344930 sandeep.pandya@gs.com 91-22-6616-9043
Beijing Capital Int’l Airport 694 HK Sell https://360.gs.com/gs/portal?action=action.doc&d=9559922 ronald.keung@ghsl.cn 86-10-6627-3483
Bharat Heavy Electricals BHEL IN Sell https://360.gs.com/gs/portal/?action=action.doc&d=8924096 ishan.sethi@gs.com 91-22-6616-9048
CapitaLand CAPL SP Buy https://360.gs.com/gs/portal?action=action.doc&d=9466470 paul.lian@gs.com 65-6889-2464
Catcher Technology 2474 TT Buy https://360.gs.com/gs/portal?action=action.doc&d=9471324 henry.king@gs.com 852-2978-0748
CCCC (H) 1800 HK Sell https://360.gs.com/gs/portal?action=action.doc&d=9158214 tommy.wong@gs.com 886-2-2730-4194
Chimei Innolux 3481 TT Buy https://360.gs.com/gs/portal?action=action.doc&d=9620401 liang.lin@gs.com 886-2-2730-4185
China Merchants Bank (A) 600036 CH Buy https://360.gs.com/gs/portal?action=action.doc&d=9573069 ning.ma@gs.com 852-2978-1677
China Eastern Airlines (H) 670 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9418013 hino.lam@gs.com 852-2978-0526
China Gas 384 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9207938 chris.shiu@ghsl.cn 86-10-6627-3462
China High Speed 658 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9361110 franklin.chow@ghsl.cn 86-21-2401-8923
China Vanke (A) 000002 CH Buy https://360.gs.com/gs/portal/?action=action.doc&d=9269024 yi.wang@ghsl.cn 86-10-6627-3022
China Yurun 1068 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9497438 yifan.deng@gs.com 852-2978-0528
CITIC Securities 600030 CH Buy https://360.gs.com/gs/portal?action=action.doc&d=9586445 richard.xu@gs.com 86-10-6627-3192
COSCO (A) 601919 CH Buy https://360.gs.com/gs/portal?action=action.doc&d=9637245 tom.kim@gs.com 852-2978-0856
CPIC (A) 601601 CH Buy https://360.gs.com/gs/portal/?action=action.doc&d=8994614 ning.ma@gs.com 852-2978-1677
Evergrande 3333 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9620390 yi.wang@ghsl.cn 86-10-6627-3022
Genting Berhad GENT MK Buy https://360.gs.com/gs/portal?action=action.doc&d=9522092 david.k.ng@gs.com 65-6889-2483
Guangdong Investment 270 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9125167 franklin.chow@ghsl.cn 86-21-2401-8923
Guangzhou Friendship 000987 CH Buy https://360.gs.com/gs/portal/?action=action.doc&d=9017656 caroline.li@ghsl.cn 86-10-6627-3023
Gujarat State Petronet GUJS IN Buy https://360.gs.com/gs/portal/?action=action.doc&d=9436450 nilesh.banerjee@gs.com 91-22-6616-9045
HK & China Gas 3 HK Sell https://360.gs.com/gs/portal?action=action.doc&d=9125185 franklin.chow@ghsl.cn 86-21-2401-8923
Honghua Group 196 HK Sell https://360.gs.com/gs/portal/?action=action.doc&d=9630462 chris.shiu@ghsl.cn 86-10-6627-3462
HTC Corp. 2498 TT Buy https://360.gs.com/gs/portal?action=action.doc&d=9621576 rob.chen@gs.com 886-2-2730-4196
Hubei Yihua Chemical 000422 CH Buy https://360.gs.com/gs/portal/?action=action.doc&d=9034489 jessie.p.lai@ghsl.cn 86-10-6627-3461
IFM Investments CTC US Sell https://360.gs.com/gs/portal?action=action.doc&d=9514939 yi.wang@ghsl.cn 86-21-2401-8930
IndusInd Bank IIB IN Buy https://360.gs.com/gs/portal/?action=action.doc&d=9600094 tabassum.inamdar@gs.com 91-22-6616-9052
Industrial Bank of Korea 024110 KS Buy https://360.gs.com/gs/portal?action=action.doc&d=9547349 josh.hwang@gs.com 82-2-3788-1178
Li & Fung 494 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9515076 joshua.lu@gs.com 852-2978-1024
LIC Housing Finance LICHF IN Sell https://360.gs.com/gs/portal/?action=action.doc&d=9592429 tabassum.inamdar@gs.com 91-22-6616-9052
Indofood Agri IFAR SP Buy https://360.gs.com/gs/portal?action=action.doc&d=9426141 patrick.tiah@gs.com 65-6889-2468
JA Solar JASO US Buy https://360.gs.com/gs/portal?action=action.doc&d=9497055 amy.song@ghsl.cn 86-21-2401-8925
Kerry Properties 683 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9338311 anthony.wu@gs.com 852-2978-0634
Lupin LPC IN Buy https://360.gs.com/gs/portal?action=action.doc&d=9221665 balaji.prasad@gs.com 91-22-6616-9179
OOIL 316 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9652146 tom.kim@gs.com 852-2978-0856
Samsung Engineering 028050 KS Buy https://360.gs.com/gs/portal/?action=action.doc&d=9207982 sean.choi@gs.com 82-2-3788-1791
Samsung Fire & Marine 000810 KS Buy https://360.gs.com/gs/portal?action=action.doc&d=9458178 stan.lee@gs.com 82-2-3788-1778
Sany Heavy 600031 CH Buy https://360.gs.com/gs/portal?action=action.doc&d=9528346 tian.lu@ghsl.cn 86-10-6627-3036
Shandong Expressway 600350 CH Buy https://360.gs.com/gs/portal?action=action.doc&d=9338492 ronald.keung@ghsl.cn 86-10-6627-3483
Shenzhen Investment 604 HK Sell https://360.gs.com/gs/portal?action=action.doc&d=9574667 jason.sun@ghsl.cn 86-10-6627-3187
Standard Chartered 2888 HK Buy https://360.gs.com/gs/portal?action=action.doc&d=9477489 roy.ramos@gs.com 852-2978-0457
Straits Asia Resources SAR SP Sell https://360.gs.com/gs/portal/?action=action.doc&d=9476865 nikhil.bhandari@gs.com 65-6889-2867
Sun Pharmaceuticals SUNP IN Sell https://360.gs.com/gs/portal?action=action.doc&d=9117097 balaji.prasad@gs.com 91-22-6616-9179
Taewoong 044490 KS Sell https://360.gs.com/gs/portal?action=action.doc&d=9360685 paul.hwang@gs.com 82-2-3788-1176
Tata Steel TATA IN Buy https://360.gs.com/gs/portal?action=action.doc&d=9579874 pritesh.vinay@gs.com 91-22-6616-9038
Telekomunikasi Indonesia TLKM IJ Buy https://360.gs.com/gs/portal?action=action.doc&d=9389908 sachin.salgaonkar@gs.com 91-22-6616-9169
Thoresen Thai TTA TB Sell https://360.gs.com/gs/portal/?action=action.doc&d=9111901 tom.king@gs.com 852-2978-0856
Wistron 3231 TT Buy https://360.gs.com/gs/portal?action=action.doc&d=9554336 henry.king@gs.com 852-2978-0748

Source: Goldman Sachs Research estimates, Gao Hua Securities Research estimates.

Goldman Sachs Global Investment Research 2

September 13, 2010 Asia: Conviction Call Catch-up

Japan Conviction List: Latest research, catalysts, analyst contacts

Stock Ticker Rating Link to latest research, including catalysts/valuation Analyst email Analyst tel. no.
Citizen Holdings 7762 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9587492 toshiya.hari@gs.com 81-3-6437-9853
Daiichi Sankyo 4568 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9206903 steve.chesney@gs.com 81-3-6437-9885
East Japan Railway 9020 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9412761 hiroyuki.sakaida@gs.com 81-3-6437-9896
FUJIFILM Holdings 4901 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9587492 toshiya.hari@gs.com 81-3-6437-9853
Hitachi 6501 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9442094 Ikuo.matsuhashi@gs.com 81-3-6437-9860
Hokuriku Electric Power 9505 JP Sell https://360.gs.com/gs/portal?action=action.doc&d=9147975 hiroyuki.sakaida@gs.com 81-3-6437-9896
Japan Tobacco 2914 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9612147 katsunori.tanaka@gs.com 81-3-6437-9973
JFE Holdings 5411 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9628724 rajeev.das@gs.com 81-3-6437-9935
Keihin 7251 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9557887 yuichiro.isayama@gs.com 81-3-6437-9806
Makita 6586 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9440999 kunio.sakaida@gs.com 81-3-6437-9940
Matsuda Sangyo 7456 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9492505 takashi.watanabe@gs.com 81-3-6437-9894
Mitsui & Co. 8031 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9590006 eric.nishimura@gs.com 81-3-6437-9920
Mitsui Chemicals 4183 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9442406 hisaaki.yokoo@gs.com 81-3-6437-9930
Mitsui Fudosan 8801 JP Buy https://360.gs.com/gs/portal/?action=action.doc&d=9432390 sachiko.okada@gs.com 81-3-6437-9937
Mitsui O.S.K. Lines 9104 JP Buy https://360.gs.com/gs/portal/?action=action.doc&d=9158118 tom.kim@gs.com 852-2978-0856
Nitori 9843 JP Buy https://360.gs.com/gs/portal/?action=action.doc&d=9198639 sho.kawano@gs.com 81-3-6437-9905
ORIX JREIT 8954 JP Buy https://360.gs.com/gs/portal/?action=action.doc&d=9211932 sachiko.okada@gs.com 81-3-6437-9937
Panasonic Corp 6752 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9554411 takashi.watanabe@gs.com 81-3-6437-9894
SMFG 8316 JP Buy https://360.gs.com/gs/portal?action=action.doc&d=9631571 toyoki.sameshima@gs.com 81-3-6437-9975
Sony Financial Holdings 8729 JP Buy https://360.gs.com/gs/portal/?action=action.doc&d=9285540 philippa.rogers@gs.com 81-3-6437-9970
Sumitomo Heavy Ind 6302 JP Buy https://360.gs.com/gs/portal/?action=action.doc&d=9441748 kunio.sakaida@gs.com 81-3-6437-9940
Taiyo Yuden 6976 JP Buy https://360.gs.com/gs/portal/?action=action.doc&d=9464022 daiki.takayama@gs.com 81-3-6437-9870
TDK 6762 JP Buy https://360.gs.com/gs/portal/?action=action.doc&d=9433388 daiki.takayama@gs.com 81-3-6437-9870
TEPCO 9501 JP Buy https://360.gs.com/gs/portal/?action=action.doc&d=9440123 hiroyuki.sakaida@gs.com 81-3-6437-9896
Yakult Honsha 2267 JP Sell https://360.gs.com/gs/portal?action=action.doc&d=8908328 katsunori.tanaka@gs.com 81-3-6437-9973
Yamada Denki 9831 JP Sell https://360.gs.com/gs/portal?action=action.doc&d=9473850 sho.kawano@gs.com 81-3-6437-9905

Source: Goldman Sachs Research estimates.

Conviction Calls: Rigorous process for selection and monitoring

Selection. Our Investment Review Committee (IRC), comprising Directors of Research and
senior sector analysts, works with our analysts to source Conviction Calls and keep them
timely and relevant. The aim of Conviction Calls is to identify the stocks we believe offer
the best alpha generation potential by capitalizing on short-term catalysts or long-term
fundamental opportunities. The 52 and 26 stocks on the AEJ CL and Japan CL, respectively,
therefore represent the best current alpha generation opportunities in our 617 and 257
stock coverage universe. We classify Conviction Calls as: (1) structural change – when we
expect CROCI to improve relative to the sector; and (2) mean reversion – when we see a
valuation anomaly although we do not expect company operations to change materially.

Monitoring. We segment our coverage universe into appropriate sub-sectors and measure
Conviction Call performance relative to the sub-sector on a total return, equal weight, local
currency, and daily rebalance methodology. We use an equal-weighted basis to keep the
focus on idea generation, which means the resulting Conviction List is unencumbered by
attempts to call the market or relative performance of sectors, and does not try to adjust for
size and liquidity. The returns of individual ideas are calculated using the first closing price
post publication of the idea and the first closing price post publication of the idea’s expiry.
Performance calculations assume closing levels with no bid/ask spread and no commission.
We regularly review each Conviction Call to check the validity of our rating. If a Conviction
Call reaches our target price or moves against our rating, we consider whether to keep it or
to remove it to realize gains or limit losses.

Goldman Sachs Global Investment Research 3

September 13, 2010 Asia: Conviction Call Catch-up

AEJ Conviction List: Share price performance summary

Market 12-mth 12-mth

Relative returns (%) Absolute returns (%)
Bbg Stock cap AVDT Share price % upside/
Stock ticker rating (US$mn) (US$mn) Currency price target (downside) Since 1-wk 1-mth LTD 1-wk 1-mth LTD
Orient Overseas International 316 HK Buy 4,754 11 HK$ 59.00 102.00 73 25-Mar-10 0 7 12.1 (0) 4 8.3
China Merchants Bank (A) 600036 CH Buy 39,561 191 Rmb 13.28 19.80 49 27-Aug-10 (2) < 1-mth (2.2) (3) < 1-mth (2.2)
China COSCO Holdings (A) 601919 CH Buy 14,972 70 Rmb 9.92 14.70 48 25-May-10 (0) 10 (11.9) (1) 6 (3.8)
China Pacific Insurance (A) 601601 CH Buy 29,017 110 Rmb 22.84 33.20 45 12-Feb-10 (1) 1 4.0 (1) (1) (5.9)
Evergrande Real Estate Group 3333 HK Buy 5,427 21 HK$ 2.81 4.00 42 20-May-10 5 5 13.7 5 5 34.4
China Eastern Airlines (H) 670 HK Buy 5,144 7 HK$ 4.17 5.90 41 29-Jul-10 (1) (6) (3.4) (1) (7) (0.2)
Chimei Innolux 3481 TT Buy 7,752 39 NT$ 38.25 53.00 39 7-Sep-10 < 1-wk < 1-mth 1.5 < 1-wk < 1-mth 6.8
Angang Steel (A) 000898 CH Buy 8,893 46 Rmb 8.32 11.50 38 19-Apr-10 (1) (7) (20.3) 2 (1) (25.0)
CITIC Securities 600030 CH Buy 16,823 305 Rmb 11.45 15.80 38 23-Jul-10 1 (6) (3.8) (0) (8) (6.1)
Shandong Expressway 600350 CH Buy 2,395 15 Rmb 4.82 6.50 35 12-Jul-10 (0) (1) (2.4) 0 0 3.0
China Gas Holdings 384 HK Buy 1,854 6 HK$ 4.32 5.80 34 14-Jun-10 4 7 1.8 6 10 13.3
Wistron 3231 TT Buy 3,266 23 NT$ 53.00 70.00 32 27-Apr-10 3 7 9.9 4 2 (4.5)
Samsung F&M 000810 KS Buy 8,101 36 W 193,500 255,000 32 28-Jun-10 1 (2) 1.5 0 (6) (1.0)
Industrial Bank of Korea 024110 KS Buy 7,982 18 W 14,450 19,000 31 23-Aug-10 1 < 1-mth (2.5) 1 < 1-mth (3.7)
Guangdong Investment 270 HK Buy 3,068 4 HK$ 3.85 5.00 30 27-May-10 (0) 3 3.6 0 2 6.9
China High Speed Transmission 658 HK Buy 2,760 15 HK$ 17.22 22.00 28 27-May-10 (9) (12) (18.9) (5) (1) 6.0
Hubei Yihua Chemical Industry 000422 CH Buy 1,963 32 Rmb 19.19 24.50 28 12-May-10 (2) (6) (0.4) 6 10 23.3
Catcher Technology 2474 TT Buy 1,496 20 NT$ 71.70 91.00 27 27-May-10 (4) 2 (2.6) (3) (3) 0.8
CapitaLand CAPL SP Buy 12,678 49 S$ 3.99 4.95 24 17-Jun-10 (2) (3) (4.6) 1 (2) 5.0
HTC Corp. 2498 TT Buy 17,386 94 NT$ 670.00 800.00 19 29-Jun-10 6 8 49.7 9 11 74.0
Indofood Agri Resources IFAR SP Buy 2,521 12 S$ 2.35 2.80 19 5-Feb-10 (3) (9) 6.9 (1) (6) 13.0
Kerry Properties 683 HK Buy 7,316 13 HK$ 39.80 47.35 19 12-Jul-10 (2) (2) (2.6) 0 2 10.6
Tata Steel TATA IN Buy 11,530 25 Rs 593.20 705.00 19 30-Aug-10 3 < 1-mth 6.4 10 < 1-mth 16.4
Lupin LPC IN Buy 3,319 1 Rs 375.80 436.80 16 16-Jun-10 1 (2) (5.0) 3 1 (0.0)
IndusInd Bank IIB IN Buy 2,088 1 Rs 235.00 270.00 15 2-Sep-10 (0) < 1-mth 0.3 2 < 1-mth 4.2
Ashok Leyland AL IN Buy 2,070 1 Rs 72.30 82.00 13 13-Jul-10 (5) (1) (2.0) (4) 2 3.8
Samsung Engineering 028050 KS Buy 4,448 26 W 137,000 155,000 13 14-Jun-10 (1) 1 6.5 0 7 25.1
Sany Heavy 600031 CH Buy 9,434 50 Rmb 26.49 29.80 12 18-Aug-10 (3) < 1-mth (1.4) (6) < 1-mth 5.6
China Yurun Food Group 1068 HK Buy 6,027 21 HK$ 28.25 31.70 12 11-Jun-10 (2) (0) 7.6 (1) 7 28.7
Guangzhou Friendship Group Co 000987 CH Buy 1,575 8 Rmb 29.53 33.00 12 7-May-10 (6) 1 (2.6) (4) 9 15.6
Telekomunikasi Indonesia TLKM IJ Buy 19,632 18 Rp 9,000 10,000 11 12-May-10 (1) 3 4.3 (1) 7 21.6
China Vanke (A) 000002 CH Buy 13,262 155 Rmb 8.16 9.00 10 20-May-10 (4) 3 (5.9) (4) 3 12.4
Li & Fung 494 HK Buy 21,211 38 HK$ 43.20 47.50 10 16-Aug-10 8 < 1-mth 6.4 10 < 1-mth 14.8
Genting Berhad GENT MK Buy 11,209 13 RM 9.41 10.30 9 17-Aug-10 1 < 1-mth 2.2 2 < 1-mth 7.9
Standard Chartered Bank 2888 HK Buy 61,125 19 HK$ 229.00 241.00 5 21-Jun-10 1 0 (0.2) 4 3 14.4
AAC Acoustic 2018 HK Buy 2,432 5 HK$ 15.38 16.10 5 4-Jun-10 5 11 18.5 8 14 36.6
Gujarat State Petronet GUJS IN Buy 1,399 2 Rs 115.60 120.00 4 2-Aug-10 (2) (4) (1.3) (2) 3 8.6
JA Solar Holdings JASO US Buy 1,173 43 $ 7.27 7.50 3 29-Jun-10 8 8 18.8 14 21 49.3
Beijing Capital Int'l Airport 694 HK Sell 2,138 5 HK$ 3.95 3.50 (11) 12-Jul-10 (1) 7 13.7 2 (6) (8.5)
Bharat Heavy Electricals BHEL IN Sell 26,108 4 Rs 2,478 2,145 (13) 21-May-09 (1) 3 9.5 4 (1) 25.0
LIC Housing Finance LICHF IN Sell 2,278 5 Rs 1,176 1,000 (15) 1-Sep-10 6 < 1-mth 6.9 (3) < 1-mth (2.0)
Taewoong 044490 KS Sell 737 8 W 51,700 42,800 (17) 19-Jul-10 (2) 11 9.7 2 (5) (1.2)
Thoresen Thai TTA TB Sell 563 15 Bt 24.50 19.90 (19) 25-Mar-10 (1) (4) 2.3 0 1 (1.2)
Straits Asia Resources SAR SP Sell 1,788 16 S$ 2.16 1.70 (21) 10-Aug-10 (1) 0 1.6 3 4 1.5
AREIT AREIT SP Sell 3,125 9 S$ 2.24 1.73 (23) 17-Jun-10 1 (2) (8.3) 2 4 16.8
ACC ACC IN Sell 3,958 2 Rs 980.15 728.00 (26) 23-Jun-10 (3) (8) (3.5) 9 14 13.3
Sun Pharmaceutical Industries SUNP IN Sell 7,782 1 Rs 1,746 1,225 (30) 28-Apr-10 0 3 (2.1) 1 (0) 9.9
Hong Kong & China Gas 3 HK Sell 18,110 14 HK$ 19.44 13.60 (30) 27-May-10 (2) (1) (10.7) 2 1 13.3
CCCC (H) 1800 HK Sell 13,705 23 HK$ 7.18 4.80 (33) 3-Jun-10 2 5 3.9 (1) (1) 12.3
IFM Investments CTC US Sell 269 1 $ 5.65 3.76 (33) 20-May-10 (5) 7 6.8 5 (6) 20.2
Shenzhen Investment 604 HK Sell 1,170 7 HK$ 2.83 1.68 (40) 23-Feb-10 0 (15) (8.2) 0 14 14.9
Honghua Group 196 HK Sell 309 1 HK$ 0.96 0.55 (43) 9-Sep-10 < 1-wk < 1-mth (2.2) < 1-wk < 1-mth 3.2
1-wk YTD 12-mth
AEJ Conviction Calls hedged with GS AEJ Rated Coverage universe (%) (0.1) 3.2 2.4
AEJ Conviction Calls hedged with MSCI AEJ Index (%) (0.1) 3.7 5.0
AEJ CL (% absolute return) 0.6 5.6 10.6
GS AEJ Rated Coverage universe (% absolute return) 1.5 6.1 17.4
MSCI AEJ Index (% absolute return) 1.4 4.6 11.4
The prices in this report are based on the market close of September 10, 2010. Relative performance of individual Conviction Calls is calculated relative to rated Conviction Call sector.
Results presented above cannot be viewed as an indicator of future performance. For methodology and risks associated with price targets mentioned, please refer to the analyst’s previously published
research. Link to Asia-Pacific Research: https://360.gs.com/gir/portal/research/ir/asia/. For important disclosures, please go to http://www.gs.com/research/hedge.html

Source: Company data, Datastream, Goldman Sachs Research estimates.

Goldman Sachs Global Investment Research 4

September 13, 2010 Asia: Conviction Call Catch-up

Japan Conviction List: Share price performance summary

Market 12-mth 12-mth

Relative returns (%) Absolute returns (%)
Bbg Stock cap AVDT Share price % upside/
Stock ticker rating (US$mn) (US$mn) Currency price target (downside) Since 1-wk 1-mth LTD 1-wk 1-mth LTD
Sony Financial Holdings 8729 JP Buy 6,932 17 ¥ 268,500 450,000 68 25-Dec-09 (4) (9) 12.9 (2) (14) 8.1
Sumitomo Heavy Industries 6302 JP Buy 3,173 29 ¥ 443.00 720.00 63 15-Apr-09 (0) (7) 2.1 4 (6) 5.5
TDK 6762 JP Buy 7,135 82 ¥ 4,660 7,300 57 24-Aug-09 (0) 0 4.2 0 (5) (11.2)
Mitsui Chemicals 4183 JP Buy 2,700 33 ¥ 227.00 350.00 54 7-Jun-10 0 (2) (11.6) 2 (7) (18.9)
SMFG 8316 JP Buy 42,100 419 ¥ 2,539 3,900 54 22-Feb-10 (1) (0) (3.1) 0 (6) (9.5)
Taiyo Yuden 6976 JP Buy 1,426 30 ¥ 998.00 1,500 50 18-Jan-10 2 3 (12.4) 2 (1) (30.8)
JFE Holdings 5411 JP Buy 17,321 111 ¥ 2,760 4,090 48 9-Sep-10 < 1-wk < 1-mth 0.0 < 1-wk < 1-mth 3.1
Japan Tobacco 2914 JP Buy 32,997 79 ¥ 278,000 410,000 47 9-Sep-09 4 (2) (2.6) 6 (2) (3.0)
Mitsui O.S.K. Lines 9104 JP Buy 7,996 93 ¥ 563.00 830.00 47 25-Mar-10 1 0 (9.1) 3 (3) (10.8)
Hitachi 6501 JP Buy 19,243 193 ¥ 359.00 520.00 45 24-Dec-09 2 4 45.6 3 (2) 33.5
Matsuda Sangyo 7456 JP Buy 441 2 ¥ 1,290 1,850 43 9-Jun-10 4 (2) (5.1) 6 (5) (9.2)
Keihin 7251 JP Buy 1,455 8 ¥ 1,657 2,350 42 24-Mar-10 (1) 3 1.7 0 1 (5.9)
Makita 6586 JP Buy 4,027 26 ¥ 2,463 3,450 40 16-Jul-10 (2) (2) (2.1) 0 (4) (7.3)
Panasonic Corporation 6752 JP Buy 31,766 123 ¥ 1,091 1,500 37 16-Aug-10 (2) < 1-mth (0.5) 1 < 1-mth 0.5
FUJI FILM Holdings 4901 JP Buy 15,724 72 ¥ 2,656 3,600 36 12-Jan-10 (2) 2 5.0 0 (3) (9.8)
ORIX JREIT 8954 JP Buy 1,171 3 ¥ 392,000 530,000 35 8-Apr-10 0 (4) (4.1) (1) (2) (6.9)
Daiichi Sankyo 4568 JP Buy 14,212 53 ¥ 1,701 2,260 33 25-Mar-10 (2) 2 6.2 (0) 3 (2.9)
Mitsui & Co. 8031 JP Buy 25,148 183 ¥ 1,161 1,520 31 30-Apr-10 4 (1) (9.8) 6 (3) (20.8)
East Japan Railway 9020 JP Buy 26,208 80 ¥ 5,520 7,200 30 10-Apr-09 (2) (4) (2.4) (2) (2) 4.8
Citizen Holdings 7762 JP Buy 1,826 14 ¥ 461.00 600.00 30 27-May-10 2 (2) (3.6) 3 (7) (11.9)
Mitsui Fudosan 8801 JP Buy 14,040 84 ¥ 1,342 1,730 29 18-Jun-10 (5) (3) (3.5) (6) (1) (2.3)
Nitori 9843 JP Buy 4,907 23 ¥ 7,240 9,100 26 11-Jun-10 (1) (3) (4.1) 2 (5) (6.9)
Tokyo Electric Power 9501 JP Buy 39,213 77 ¥ 2,442 2,600 6 2-Jun-10 (1) (0) 1.6 (1) 2 3.8
Yamada Denki 9831 JP Sell 5,903 43 ¥ 5,290 5,300 0 11-Jun-10 0 5 4.8 2 (7) (6.3)
Hokuriku Electric Power 9505 JP Sell 5,322 7 ¥ 2,035 1,750 (14) 2-Jun-10 (0) (3) (7.2) 0 4 9.1
Yakult Honsha 2267 JP Sell 5,479 14 ¥ 2,624 2,000 (24) 19-Apr-10 (1) (4) (13.9) 2 4 7.9
1-wk YTD 12-mth
Japan Conviction Calls hedged with GS Japan Rated Coverage universe (%) (0.2) 0.4 6.6
Japan Conviction Calls hedged with TOPIX (%) 0.0 2.5 9.8
Japan CL (% absolute return) 0.8 (2.2) 2.0
GS Japan Rated Coverage universe (% absolute return) 1.4 (4.1) (7.6)
TOPIX (% absolute return) 1.2 (7.2) (11.5)

The prices in this report are based on the market close of September 10, 2010. Relative performance of individual Conviction Calls is calculated relative to rated Conviction Call sector.
Results presented above cannot be viewed as an indicator of future performance.
For methodology and risks associated with price targets mentioned, please refer to the analyst’s previously published research. Link to Japan Research: https://360.gs.com/gir/portal/research/ir/asia/japan/.
For important disclosures, please go to http://www.gs.com/research/hedge.html

Source: Company data, Datastream, Goldman Sachs Research estimates.

Goldman Sachs Global Investment Research 5

September 13, 2010 Asia: Conviction Call Catch-up

AEJ Conviction List: Valuation, returns, GS EPS vs. consensus

Dividend yield Price/Book Return on Net debt/Equity 2-yr CAGR GS vs IBES

P/E (x) EV/EBITDA (x) (%) Value (x) equity (%) (%) FY0-FY2 (%) EPS (%)
Stock
Stock rating FY1 FY2 FY1 FY2 FY1 FY2 FY1 FY2 FY1 FY2 FY1 FY2 Sales EBITDA EPS FY1 FY2
Orient Overseas International Buy 8.1 9.8 3.7 4.5 16.7 5.1 0.9 0.9 34 9 (25) (23) 31 nm nm (55) 8
China Merchants Bank (A) Buy 11.2 9.3 nm nm 2.1 2.6 2.1 1.8 22 21 nm nm 27 nm 26 3 3
China COSCO Holdings (A) Buy 11.3 8.8 6.6 5.5 2.2 2.8 2.1 1.8 20 22 35 24 27 nm nm 96 89
China Pacific Insurance (A) Buy 18.9 15.5 nm nm 1.3 1.6 2.3 2.1 nm nm nm nm nm nm 24 23 24
Evergrande Real Estate Group Buy 6.2 4.8 5.0 3.1 1.6 2.1 2.0 1.5 38 36 78 35 198 252 165 (5) 1
China Eastern Airlines (H) Buy 11.4 9.7 6.7 5.3 0.0 0.0 2.6 2.0 57 33 305 198 42 48 266 (14) 25
Chimei Innolux Buy 14.8 7.1 4.7 3.1 0.0 1.7 0.8 0.8 9 11 73 55 96 316 nm (7) 17
Angang Steel (A) Buy 12.0 9.0 6.9 5.6 4.8 6.4 1.1 1.1 9 12 55 45 21 40 198 29 27
CITIC Securities Buy 8.2 13.1 nm nm 2.8 2.3 1.6 1.5 21 12 nm nm (5) nm (20) 34 4
Shandong Expressway Buy 13.4 11.5 7.1 6.1 3.7 5.2 1.6 1.5 12 13 17 5 5 8 16 2 (0)
China Gas Holdings Buy 17.9 12.9 11.3 8.5 1.1 1.6 3.0 2.6 18 22 164 129 44 23 13 15 20
Wistron Buy 8.6 7.6 4.2 3.8 5.6 6.3 1.7 1.5 21 22 (34) (28) 17 19 19 (0) (2)
Samsung F&M Buy 14.3 12.3 nm nm 1.8 1.9 1.4 1.3 11 12 nm nm nm nm 15 (6) (3)
Industrial Bank of Korea Buy 6.3 5.2 nm nm 3.2 4.8 0.8 0.7 14 15 nm nm 20 nm 42 5 11
Guangdong Investment Buy 10.6 9.5 5.7 4.8 3.2 3.5 1.3 1.2 13 13 3 (6) 9 8 10 (1) (2)
China High Speed Transmission Buy 14.2 11.7 10.4 8.5 2.4 2.9 3.5 2.9 27 27 29 24 35 26 29 1 (1)
Hubei Yihua Chemical Industry Buy 17.0 17.8 5.5 5.6 1.2 1.1 2.6 2.3 18 14 35 23 23 33 52 13 (13)
Catcher Technology Buy 12.3 9.4 6.8 5.3 3.3 4.3 1.3 1.2 11 13 (6) (6) 25 25 24 (3) 12
CapitaLand Buy 24.4 21.6 12.6 11.2 2.8 2.8 1.2 1.2 5 6 27 22 3 6 (16) (9) 3
HTC Corp. Buy 13.9 9.7 10.5 6.6 3.7 5.4 6.2 4.3 51 52 (96) (99) 69 59 59 16 36
Indofood Agri Resources Buy 16.4 12.0 7.5 5.4 1.2 1.7 2.2 1.9 14 17 37 22 50 40 48 2 14
Kerry Properties Buy 18.5 16.4 13.9 28.7 2.0 2.0 1.1 1.0 6 6 9 20 9 (20) (11) (7) (11)
Tata Steel Buy 8.0 5.5 5.7 4.1 2.7 3.2 1.9 1.4 26 30 133 86 8 61 nm 17 40
Lupin Buy 19.0 15.5 14.0 11.5 1.1 1.3 6.1 4.6 37 34 38 23 23 25 26 4 6
IndusInd Bank Buy 20.0 16.4 nm nm 1.0 1.2 3.8 3.2 19 20 nm nm 32 nm 30 3 (1)
Ashok Leyland Buy 15.6 12.0 11.0 8.2 2.8 3.8 2.4 2.2 16 19 52 38 23 34 39 7 9
Samsung Engineering Buy 15.5 11.2 10.1 7.1 1.8 2.6 4.9 3.6 39 39 (127) (115) 34 27 37 4 9
Sany Heavy Buy 15.5 12.0 11.1 8.6 0.9 1.3 4.9 3.6 40 34 27 18 54 61 58 (4) (1)
China Yurun Food Group Buy 19.6 18.0 15.2 13.5 1.4 1.5 4.0 3.5 24 21 (15) (15) 35 29 20 11 4
Guangzhou Friendship Group Co Buy 30.9 25.6 18.6 14.1 1.2 1.5 7.0 5.9 24 25 (134) (150) 33 22 21 3 1
Telekomunikasi Indonesia Buy 14.3 12.1 5.1 4.5 3.8 4.5 3.9 3.4 29 30 14 (3) 7 7 18 (0) 7
China Vanke (A) Buy 12.8 12.3 7.8 7.0 1.1 1.2 2.1 1.8 17 16 28 15 17 30 17 na na
Li & Fung Buy 29.4 22.8 23.3 18.4 2.7 3.5 8.7 8.1 30 37 14 16 28 40 44 10 9
Genting Berhad Buy 17.6 15.6 4.5 3.7 1.5 1.7 2.3 2.0 12 14 (15) (21) 37 47 41 (1) (10)
Standard Chartered Bank Buy 15.3 13.0 nm nm 2.5 2.7 2.0 1.8 14 14 nm nm 9 nm 16 (5) (5)
AAC Acoustic Buy 16.7 10.3 12.3 7.5 2.6 3.9 4.0 3.2 26 35 (34) (34) 53 56 62 2 23
Gujarat State Petronet Buy 13.8 12.2 7.4 6.4 2.2 2.5 3.5 2.9 28 26 94 73 18 20 13 11 10
JA Solar Holdings Buy 9.9 8.5 6.9 5.4 0.0 0.0 1.7 1.5 17 18 18 10 54 143 nm (24) (14)
Beijing Capital Int'l Airport Sell 30.1 22.5 11.9 10.8 1.7 2.2 1.2 1.1 4 5 150 155 14 20 49 15 (4)
Bharat Heavy Electricals Sell 23.2 21.2 16.8 15.4 1.3 1.5 6.1 5.1 29 26 (41) (36) 22 17 15 (6) (15)
LIC Housing Finance Sell 11.2 11.8 nm nm 1.7 1.9 2.7 2.3 26 21 nm nm 22 nm 17 7 (11)
Taewoong Sell 33.5 18.1 13.3 8.8 0.0 0.2 2.1 1.9 6 11 (19) 7 2 4 22 na na
Thoresen Thai Sell 7.4 6.9 2.6 2.5 4.1 3.7 0.6 0.6 10 8 (14) (12) 9 28 76 65 55
Straits Asia Resources Sell 19.4 13.9 9.5 7.1 3.0 4.3 3.5 3.2 18 24 31 23 2 (7) (7) 0 (36)
AREIT Sell 17.1 16.9 19.1 18.5 5.9 6.0 1.4 1.4 8 8 53 52 3 3 3 1 (5)
ACC Sell 13.5 13.7 8.0 7.7 2.3 2.3 2.7 2.4 21 18 2 (4) 7 (6) (8) 4 (3)
Sun Pharmaceutical Industries Sell 23.7 21.1 20.2 17.4 0.8 0.8 3.9 3.4 18 17 (32) (37) 19 16 13 (3) (4)
Hong Kong & China Gas Sell 28.9 26.7 27.3 25.4 1.7 1.8 4.0 3.7 14 14 17 15 9 11 1 0 (2)
CCCC (H) Sell 12.1 11.8 8.3 7.7 2.0 2.0 1.5 1.4 13 12 91 80 0 10 5 (9) (19)
IFM Investments Sell nm 17.9 nm 10.3 0.0 0.0 1.9 1.8 (9) 11 (90) (93) 46 10 (14) na na
Shenzhen Investment Sell 12.8 16.7 14.2 19.8 3.1 2.4 0.8 0.8 6 5 60 80 (4) (14) (24) (26) (45)
Honghua Group Sell nm 20.2 13.4 9.0 0.1 1.0 0.6 0.6 0 3 (26) (5) 13 nm nm na na

FY0 stands for the last reported fiscal year, FY1 for the upcoming reported fiscal year, and FY2 for the next fiscal year after FY1.
Source: Company data, Datastream, Goldman Sachs Research estimates, Gao Hua Securities Research estimates.

Goldman Sachs Global Investment Research 6

September 13, 2010 Asia: Conviction Call Catch-up

Japan Conviction List: Valuation, returns, GS EPS vs. consensus

Dividend yield Price/Book Return on Net debt/Equity 2-yr CAGR GS vs IBES

P/E (x) EV/EBITDA (x) (%) Value (x) equity (%) (%) FY0-FY2 (%) EPS (%)
Stock
Stock rating FY1 FY2 FY1 FY2 FY1 FY2 FY1 FY2 FY1 FY2 FY1 FY2 Sales EBITDA EPS FY1 FY2
Sony Financial Holdings Buy 13.6 13.4 nm nm 1.1 1.1 1.9 1.7 20 20 nm nm nm nm (5) (1) (1)
Sumitomo Heavy Industries Buy 11.7 7.8 4.5 3.5 1.8 2.3 1.0 0.9 9 12 6 2 8 27 61 16 42
TDK Buy 10.5 9.6 4.4 3.9 1.7 2.1 1.1 1.0 10 10 14 7 7 22 116 14 7
Mitsui Chemicals Buy 8.3 9.5 6.0 5.1 2.6 2.6 0.6 0.5 7 6 103 92 11 40 nm 8 33
SMFG Buy 8.5 10.3 nm nm 3.9 3.9 0.7 0.7 8 7 nm nm 4 nm 6 17 (5)
Taiyo Yuden Buy 13.7 10.3 3.5 3.0 1.0 1.0 0.9 0.8 6 8 7 (1) 8 21 nm 2 9
JFE Holdings Buy 8.1 7.5 5.0 4.6 2.9 3.3 0.9 0.8 12 12 86 73 12 34 106 21 9
Japan Tobacco Buy 17.1 13.3 5.8 4.8 2.0 2.0 1.3 1.3 9 10 17 7 3 5 23 4 (7)
Mitsui O.S.K. Lines Buy 8.4 6.3 5.4 4.3 2.4 3.2 0.9 0.8 12 14 93 81 14 68 424 21 39
Hitachi Buy 10.0 8.4 4.1 3.4 1.4 1.7 1.2 1.0 12 13 120 87 4 15 nm 9 12
Matsuda Sangyo Buy 8.3 7.4 3.7 3.0 1.9 1.9 0.9 0.8 12 12 (16) (21) 10 26 31 9 8
Keihin Buy 9.2 7.3 1.9 1.4 1.6 1.9 1.0 0.8 10 12 (38) (41) 8 24 48 23 23
Makita Buy 13.2 10.2 4.6 3.7 2.2 3.0 1.1 1.0 8 10 (36) (36) 11 23 22 12 18
Panasonic Corporation Buy 23.9 19.5 4.6 4.2 0.9 1.8 0.8 0.8 4 4 13 5 10 20 nm (3) (24)
FUJI FILM Holdings Buy 16.1 11.5 3.2 2.8 1.7 2.4 0.7 0.7 5 7 (10) (13) 2 57 nm 3 7
ORIX JREIT Buy 13.5 16.1 15.6 15.9 7.4 6.2 0.7 0.7 5 5 88 72 (0) (2) (13) na na
Daiichi Sankyo Buy 19.5 17.9 6.6 6.3 3.5 3.8 1.4 1.3 7 8 (6) (10) 3 8 26 0 (2)
Mitsui & Co. Buy 5.8 4.5 8.9 6.2 3.6 4.5 0.9 0.8 16 18 101 69 27 47 77 6 15
East Japan Railway Buy 13.0 11.6 7.0 6.7 2.2 2.5 1.2 1.1 9 10 177 166 2 7 25 10 10
Citizen Holdings Buy 18.1 11.1 4.7 3.8 2.2 3.3 0.8 0.8 4 7 (0) (2) 7 30 94 1 11
Mitsui Fudosan Buy 23.3 20.3 17.4 15.9 1.6 1.6 1.1 1.1 5 5 155 144 1 2 (2) (1) (1)
Nitori Buy 13.4 12.1 6.8 5.7 0.9 1.1 2.6 2.2 21 19 (4) (16) 10 13 20 1 1
Tokyo Electric Power Buy 28.4 13.2 9.6 8.3 2.5 2.5 1.3 1.2 5 9 303 284 5 9 37 12 12
Yamada Denki Sell 8.8 11.0 4.9 5.8 0.8 0.8 1.1 1.0 13 10 23 15 1 (7) (9) (7) (22)
Hokuriku Electric Power Sell 20.2 18.0 7.8 7.6 2.5 2.5 1.2 1.1 6 6 192 176 1 1 19 1 (5)
Yakult Honsha Sell 33.5 30.4 9.2 8.2 0.8 0.9 2.0 1.9 6 7 (42) (46) 3 (2) 7 (4) (10)

FY0 stands for the last reported fiscal year, FY1 for the upcoming reported fiscal year, and FY2 for the next fiscal year after FY1.
Source: Company data, Datastream, Goldman Sachs Research estimates.

Director of Research (DOR) Asia Focus List

Our DOR Asia Focus List was launched in October 2009 and currently consists of 16 stocks
representing our analysts’ AEJ and Japan CL ideas that research management find most
attractive on a range of qualitative and quantitative factors. Research management review
our AEJ and Japan CL stocks on a weekly basis within this report to identify the best ideas
by reference to a range of variables including: end-market exposure, structural growth
potential, comparison of our estimates relative to market consensus, and historical
valuation/performance. We also review our CL ideas on a range of quantitative screens,
including our Director’s Cut (DC) valuation framework and Investment Profiling (IP) scores.
If a stock is removed from CL, it is also removed from our DOR Asia Focus List at the same
time. Below, we summarize the key characteristics and reasons for inclusion for all our
current DOR Asia Focus List ideas. For each of these stocks, pages 2-3 provide links to
latest analyst research and pages 4-7 provide latest performance and valuation data.

Goldman Sachs Global Investment Research 7

September 13, 2010 Asia: Conviction Call Catch-up

Exhibit 1: DOR Asia Focus List stocks: Summary of key characteristics and reasons for inclusion

Market cap 12-mth price % upside/ Sector relative Sector relative IP

(1) (2)
Stock Ticker Sector (US$mn) Rating Currency Price target (downside) DC quintile quintile
Sumitomo Heavy Industries 6302 JP Machinery 3,173 Buy ¥ 443.00 720.00 63% 1 1
China COSCO Holdings (A) 601919 CH Transportation: Shipping 14,972 Buy Rmb 9.92 14.70 48% 3 1
Evergrande Real Estate Group 3333 HK Real Estate 5,427 Buy HK$ 2.81 4.00 42% 1 1
Chimei Innolux 3481 TT Technology: Hardware 7,752 Buy NT$ 38.25 53.00 39% 1 4
Angang Steel (A) 000898 CH Steel 8,893 Buy Rmb 8.32 11.50 38% 3 3
CITIC Securities 600030 CH Brokers & Asset Managers 16,823 Buy Rmb 11.45 15.80 38% na 3
Panasonic Corporation 6752 JP Technology: Hardware 31,766 Buy ¥ 1,091 1,500 37% 3 1
FUJI FILM Holdings 4901 JP Technology: Hardware 15,724 Buy ¥ 2,656 3,600 36% 2 1
China Gas Holdings 384 HK Energy: Gas 1,854 Buy HK$ 4.32 5.80 34% 4 1
Wistron 3231 TT Technology: Hardware 3,266 Buy NT$ 53.00 70.00 32% 2 1
Samsung Fire & Marine Insurance 000810 KS Insurance 8,101 Buy W 193,500 255,000 32% na 5
China High Speed Transmission (3) 658 HK Clean Energy 2,760 Buy HK$ 17.22 22.00 28% 5 1
CapitaLand CAPL SP Real Estate 12,678 Buy S$ 3.99 4.95 24% 3 4
Tata Steel TATA IN Steel 11,530 Buy Rs 593.20 705.00 19% 2 1
Li & Fung 494 HK Textile, Apparel & Footwear 21,211 Buy HK$ 43.20 47.50 10% 5 2
Genting Berhad GENT MK Multi-Industry 11,209 Buy RM 9.41 10.30 9% 1 2

Data as of September 10, 2010 close. (1) Basic Director's Cut (DC): The framework selects valuation outliers based on sector relative EV/GCI (market value of gross cash invested) to CROCI/WACC (excess returns). The underlying
assumption of the methodology is that a company's EV/GCI vs. CROCI/WACC ratio will converge with the sector average over time as under/overvaluations are arbitraged away. Stocks that are in the most attractive 20% (i.e. below the
sector average line and appear undervalued) are assigned a score of 1 and in the least attractive 20% a score of 5. Scores are on a 12-month forward basis. (2) Investment Profiling (IP): Each stock is ranked relative to our AEJ/Japan
coverage universe on growth, returns and valuation. We combine these rankings to produce an overall score, called Investment Profiling (IP) score, of how attractive each stock appears on these criteria vs. its peer group. Stocks that are in
the top 20% (i.e. which offer strong growth, high returns and trade at attractive multiples on a sector relative basis) are assigned a score of 1 and in the bottom 20% a score of 5. IP scores as of September 9, 2010 close. (3) On our GS
SUSTAIN Focus List.

Source: Datastream, Goldman Sachs Research estimates, Gao Hua Securities Research estimates.

Stock Reasons for inclusion in DOR Asia Focus List + potential catalysts
Attractive valuation at below mid-cycle EV/IC and beneficiary of potential cyclical recovery in orders for key export products such as construction and
Sumitomo
plastic injection molding equipment for China. 2QFY3/11 result in Oct should provide increased visibility on potential strong recovery in FY3/11E ROE/EPS
Heavy
and our EPS estimates are currently significantly ahead of both company guidance and consensus forecasts
Attractive valuation at below mid-cycle P/B and stronger-than-expected cyclical recovery in its bulk and container shipping operations with sector-relative
China COSCO
CROCI to rise to Quartile 1 in 2012E from Quartile 3 in 2010E. 3Q10 result in Oct should provide more visibility on this recovery and push up consensus
(A)
EPS/ROE estimates as bulk shipping freight rates strengthen due to dissipating market concerns on industry oversupply/hard landing for China’s economy
Attractive valuation at steep NAV discount and strong upside leverage if market concerns on a prolonged downturn in China’s property market dissipate.
Evergrande Real
During 2H10, the following catalysts should become more visible and cause the NAV discount to narrow: (1) solid ytd execution on residential unit sales
Estate
and improving financial position; and (2) stabilization in China’s real estate sector following 1H10 introduction of government tightening measures
Leverage to potential recovery in LCD panel prices and shipment volumes during 4Q10/1Q11 and attractive valuation at below mid-cycle P/B. During 4Q10,
Chimei Innolux we expect LCD datapoints should provide increased visibility on potential recovery in LCD panel prices, with demand from the Chinese market a key
driver. 4Q10 result in Jan 2011 should provide evidence of this recovery and a positive outlook for 1H11
Leverage to China’s strong economic growth outlook and attractive valuation at below mid-cycle P/B. Outperformance over next 6-12 months to be driven
Angang Steel (A) by 2H10 stabilization and modest 1H11 recovery in steel ASPs and demand, following 1H10 softening on the back of government tightening measures in
key sectors such as property. 3Q10 result in Oct should provide initial datapoints to show stabilization in steel ASPs and demand
Attractive valuation at below mid-cycle P/E and beneficiary of potential increase in China A-share trading volumes over the next 6-12 months. We forecast
CITIC Securities
monthly A-share trading volumes should start to increase during 4Q10 and 1Q11 as inflationary pressures in China’s economy dissipate and government
(A)
tightening measures come to an end
Attractive valuation at below mid-cycle P/B and beneficiary of ongoing restructuring through the integration of Sanyo Electric and Panasonic Electric
Panasonic Corp Works. During 2HFY3/11, we expect further visibility on potential restructuring benefits through the announcement of specific integration measures and
possible synergies from these measures
Attractive valuation at below mid-cycle P/B and beneficiary of cyclical recovery in key businesses and restructuring measures in prior years. 2QFY3/11 result
FUJIFILM
in Oct should provide increased visibility on a potential strong recovery in FY3/11E ROE/EPS on the back of two key catalysts: (1) lower costs following
Holdings
several years of structural reforms; and (2) improving returns in core businesses, such as medical and LCD materials
Leverage to the strong growth prospects for China’s gas distribution sector. Outperformance over next 6-12 months to be driven by increasing visibility on
China Gas
robust gas sales volume growth we forecast for FY3/11. 1HFY3/11 result in Dec should provide evidence of this growth and also should provide an update
Holdings
on latest developments in the company’s LPG business
Reasonable valuation at below mid-cycle P/E and stronger-than-expected ROE and EPS growth in 2010/2011. Recent market concerns on margin pressure
Wistron Corp should dissipate as investors refocus on the company’s diversification into higher-margin products such as LCD TV and desktop PC. 3Q10 result in Oct
should highlight stable operating margin outlook and strong ROE/EPS growth prospects during 2H10
Attractive valuation at lower end of historical Embedded Value (EV) range and stronger-than-expected EV growth over next 6-12 months. Monthly results
Samsung Fire &
during 2HFY3/11 should show strong performance from new products, with growth coming not only from savings products but also from higher-margin
Marine
protection type insurance
Reasonable valuation and leverage to strong growth potential of China’s wind power sector. 2H10 result in Mar 2011 should provide increased visibility on
China High
following two key catalysts: (1) strong growth in its principal business of wind gearbox manufacturing (3-year sales CAGR of 24% over 2010E-2012E); and
Speed
(2) emerging growth drivers from the company’s marine gear and high-speed/light rail operations
Attractive valuation at below mid-cycle NAV discount and beneficiary from current upcycle in Singapore’s real estate market and potential 2011 recovery
CapitaLand in China’s property market. Potential catalysts during 2H10: (1) expanding margins for Ascott, its international service residence business; and (2)
stabilization in China’s property market as investors become more confident recent tightening measures should not cause a prolonged downturn
Reasonable valuation at mid-cycle P/B and P/E and leverage to operational turnaround at its restructured European steel business on which market
Tata Steel expectations are at a low level with current share price implying a negative EV and operating losses. 2QFY3/11 result in Nov should provide increased
visibility on improving performance at its European operations and a positive outlook for its steel business in India
Attractive valuation at lower end of historical P/E range and leverage to strong growth prospects for the company’s industry-leading global outsourcing
Li & Fung business. Outperformance over next 6-12 months to be driven by further evidence of sustainability of higher margins in its onshore business, execution
progress on recent acquisitions, and increasing visibility on long-term growth potential of the company’s Wal-Mart business. 2H10 result is in Mar 2011
Leverage to strong growth prospects of Singapore’s gaming market and below-average NAV discount. Outperformance over next 6-12 months to be
Genting Berhad driven by evidence of further robust gaming revenue from its Singapore operations. 3Q10 result in Nov should provide increased visibility on the strong
growth prospects for Singapore and a stable outlook for the company’s operations in Malaysia

Source: Datastream, Goldman Sachs Research estimates, Gao Hua Securities Research estimates.

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September 13, 2010 Asia: Conviction Call Catch-up

Reg AC
We, Paul D. Bernard, CFA, Keith Hayes and Mike Warren, hereby certify that all of the views expressed in this report accurately reflect our personal
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September 13, 2010 Asia: Conviction Call Catch-up

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September 13, 2010 Asia: Conviction Call Catch-up

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Goldman Sachs Global Investment Research 11