Regional Daily, Maybank KE (2014-05-08)

Daily 08 May 2014 TOP VIEWS Samsung Electronics (005930 KS) | Company Update Ezion Holdings (EZI SP) | Results Review HSBC (5 HK) | Rating Change Samsung Electronics (005930 KS) Re-examining 2Q outlook Share Price: KRW1344000 | TP: KRW1500000 (+11%) | MCap (USD): 192.4B | ADTV: USD273M Maintain HOLD and KRW1.5m TP. 2Q smartphone and tablet sales may miss Street expectations and guidance due to model transition and weak-than-expected demand. That said, demand for Galaxy S5 tracks high-end of our expectations, but may not match S4 shipments in 2Q13. While product mix may improve, SEC may not meet our OP estimate for 2Q, especially given the sharp rise in the KRW. Click here for report » Ezion Holdings (EZI SP) Keeping the momentum going Share Price: SGD2.25 | Target Price: SGD2.70 (+20%) | MCap (USD): 2.2B | ADTV: USD13M 1Q14 results in line, with PATMI of USD45.2m (-2.0% YoY, +11.7% QoQ). Stripping out the one-off disposal gain in 1Q13, PATMI grew 62% YoY. Secured USD63.9m, five-year service rig contract to support oil major in the Middle East. Maintain BUY and TP of SGD2.70, pegged to 13x FY14E P/E. Click here for report » HSBC (5 HK) Better asset quality: U/G HOLD Share Price: HKD78.40 | Target Price: HKD78.05 (-0%) | MCap (USD): 190.4B | ADTV: USD146M Upgrade to HOLD with higher TP of HKD78.05. NIM decline will be offset by stronger volume growth. We lower our credit costs forecast but remain concerned over dividend payout and timing of share buyback. Click here for report » COMPANY NOTES Malaysia Marine & Heavy Engineering (MMHE MK) | Results Review Philippine Long Distance Telephone Co (TEL PM) | Rating Change StarHub (STH SP) | Results Review Malaysia Marine & Heavy Engineering (MMHE MK) Results yield no surprises Share Price: MYR3.94 | Target Price: MYR4.20 (+7%) | MCap (USD): 1.9B | ADTV (USD): 0.7M 1Q14 net profit of MYR35m within our expectations but above consensus. Expect new job flows to be prominent in 2Q14. Maintain BUY and MYR4.20 TP, pegged to 20x FY15 PER. Click here for report » Philippine Long Distance Telephone Co (TEL PM) 1Q profits in line but upside limited Share Price: PHP2,892.00 | Target Price: PHP3,090.00(+7%) | MCap (USD): 14.1B | ADTV (USD): 12M Downgrade to HOLD as upside potential has narrowed. 1Q14 core earnings up 2% YoY to PHP9.76b, 24% of our full-year estimate. Main growth driver remains non-SMS data, now 24% of revenues from 21% a year ago. (FULL REPORT WILL BE OUT SOON) StarHub (STH SP) Muted quarter with no surprises ADTV (USD): 7M 1QFY14 was rather muted but overall, results were within expectations. Maintain BUY, TP SGD3.98. Prefer M1. Service EBITDA margin was above full year guidance of 32%, which StarHub maintained. Net debt/EBITDA ratio fell to fresh 0.4x low, which points to capacity for higher dividends in future. Click here for report » ECONOMICS Economics Malaysia External Trade, Mar�14 Lower than expected trade growth Trade growth eased in Mar 2014 as exports rose by +8.4% YoY (Feb 2014: +12.3% YoY) while import growth slowed sharply to +0.5% YoY (Feb 2014: +9.5% YoY). YTD, exports and imports were up by +10.9% (2013: +2.4%) and +5.5% (2013: +7.0%). Positive trade figures so far this year is a boost to 1Q 2014 GDP data due next week. (FULL REPORT WILL BE OUT SOON) FLASH NOTE China LotSynergy Holdings (1371 HK) | Flash Note China LotSynergy Holdings (1371 HK) Policy confusion � BUY on weakness Share Price: HKD0.58 | Target Price: HKD1.00(+72%) | MCap (USD): 561M | ADTV (USD): 21M Maintain BUY and Street-high TP of HKD1 as news today has no impact on CLS. We believe the article today regarding internet lottery sales is nothing new but caused confusion on regulatory environment of Chinese lottery stocks. CLS has zero revenue from internet lottery sales and we believe regulatory reform in the Chinese lottery industry is powering ahead. Click here for report »