Regional Daily, Maybank KE (2014-03-04)

Daily 04 March 2014 TOP VIEWS Malaysia Strategy | NEUTRAL Indonesia Poultry | OVERWEIGHT Bumrungrad Hospital (BH TB) | Company visit Malaysia Strategy | NEUTRAL Strategy Another year of growth We maintain our 1,940 end-2014 KLCI target and sector weights; and remain selective on stocks. 4Q13 saw more results meet our expectations and the ratio of below to-above expectation results also improved. We estimate that the KLCI core earnings grew 5.1% in 2013, and expect 8.1%/8.4% growth in 2014/2015. Click here for report » Indonesia Poultry Sector update Golden egg � stay OVERWEIGHT Maintain Overweight stance on the Indonesian poultry sector with Malindo Feedmill (BUY, TP IDR4,350) as our top pick. Transferring coverage to Anthony Yunus. Forecast 12.5% CAGR in meat poultry consumption in FY13F-17F as wages are rising and beef is becoming expensive. Expect net margins of feed producers to normalize in FY14F on higher ASPs and IDR stabilization. Click here for report » Bumrungrad Hospital (BH TB) Recovery faster than expected Share Price: THB89.00 | Target Price: THB105 (+18%) | MCap (USD): 2.0B | ADTV: USD2M Shows operational improvement in terms of volume during the political turmoil (Jan-Feb14). We expect patient revenue to grow 13% with 27% EBITDA margin in 2014, in line with management's guidance. Maintain BUY with DCF-derived TP of THB105. Bumrungrad remains our top pick in the healthcare sector. Click here for report » COMPANY NOTES Jaiprakash Associates(JPA IN) | Company update BDO Unibank Inc (BDO PM) | Results review Energy Development Corp (EDC PM) | Results review MY Strategy - February fund flows | NEUTRAL Super Group (SUPER SP) | Rating change Jaiprakash Associates(JPA IN) Announces sale of two power units Share Price: INR42 | Target Price: INR55(+31%) | MCap (USD): 1.5B | ADTV (USD): 2M Sale of its two power plants valued at INR105b slightly below Street expectations. Maintain BUY with TP of INR55. Deal enables 18% debt reduction and brings about interest cost savings of INR9b pa. Debt-to-equity ratio down to 3.5x from 4.6x. On course to reduce debt by INR200b or 26% by next year. Click here for report » BDO Unibank Inc (BDO PM) Faster growth in recurring income Share Price: PHP84.00 | Target Price: PHP88.00(+5%) | MCap (USD): 6.7B | ADTV (USD): 9M FY13 net income slightly above our estimate and consensus. Notable trends: robust loan growth, better asset quality, ample liquidity, and adequate capital. NIM likely contracted on increase in interest-earning assets. Pending release of line-by-line numbers soon, we keep our FY14 forecast and TP of PHP88 unchanged. Maintain BUY. (FULL NOTE TO BE OUT SOON) Energy Development Corp (EDC PM) Still profitable in 4Q13 Share Price: PHP5.64 | Target Price: PHP6.85(+21%) | MCap (USD): 2.3B | ADTV (USD): 1M FY13 recurring profits of PHP6.6b beat our estimate of PHP5.42b. EDC posts profits of PHP775m in 4Q13, down 58% YoY. Higher than-expected as we anticipated losses of PHP409m in 4Q13. Maintain BUY and TP of PHP6.58. Click here for report » MY Strategy Strategy February fund flows We think it is still early to conclude a sustained return of foreign funds into equities despite last week�s net buying. We expect volatility to persist into 2Q14 with US� QE Taper and China�s macros to drive near-term equities momentum. No change to our 1,940 YE KLCI target and sector weights; and we remain selective on stocks. Click here for report » Super Group (SUPER SP) Mixed outlook; cut to HOLD Share Price: SGD3.58 | Target Price: SGD3.72(+4%) | MCap (USD): 1.6B | ADTV (USD): 2M Downgrade to HOLD as we no longer believe the near-term outlook justifies current valuations. While 4Q13 results were an improvement from the disappointing 3Q13, several headwinds will curb earnings growth. Management has lowered its growth target in the branded consumer segment from 10-15% to 5-10% going forward, signalling intensifying competition in existing markets. A 1-for-1 bonus share issue does not change fundamentals, but may improve liquidity and provide technical support for the share price from here. Click here for report » ECONOMICS Thailand Economics Inflation rises But risk to growth is bigger concern Inflation continues to rise in Feb but risk to GDP growth is now bigger concern. Expect BoT to trim policy rate to 2.00% at next meeting on 12 Mar. Click here for report »     Click here for full Regional Daily report »