Regional Daily, Maybank KE (2014-05-27)

Daily 27 May 2014 TOP VIEWS China Resources Enterprise (291 HK) | Rating Change DLF (DLFU IN) | Company Visit Vista Land & Lifescapes (VLL PM) | Rating Change Q&M Dental Group (QNM SP) | Company Update China Resources Enterprise (291 HK) | Rating Change D/G on retail OP deleverage Share Price: HKD22.95 | Target Price: HKD18.70(-19%) | MCap (USD): 7.1B | ADTV (USD): 9M D/G to SELL on negative SSSG outlook given rising competition from e-commerce and management�s focus on upcoming Tesco integration. Widening losses YoY in our view also reveal ongoing structural problems in weak regions. Slash FY14-16F forecast (ex-Tesco) by 9%-19% on sluggish retail sales prospects and food restructuring losses despite good beer & beverage sales/margins. Key downside risks are fading raw material costs tailwind and hike in A&P costs. New TP of HKD18.7 is equivalent to 29.7X FY14F PER or 1.0X FY14F PBR. We apply 15% discount to our SOTP-derived NAV. Click here for report » DLF (DLFU IN) | Company Visit Riding on the right initiatives and macro turnaround Share Price: INR217 | Target Price: INR300(+39%) | MCap (USD): 6.6B | ADTV (USD): 5M As macro environment improves, we believe a strong track record and asset/geographic mix benefit DLF the most among peers. Reiterate BUY with Street-high TP of INR300. Efforts to strengthen balance sheet via land/asset sales to continue. Debt-to-equity will fall to 0.5x from 0.6x in FY16F. Launches/presales will restart after dull FY14. DLF guides for steady presales of INR90b in next two years from INR42b last year. Valuation still looks cheap at FY16F P/B of 1.2x and 42% discount to our NAV (after post-election rally of 50%). Click here for report » Vista Land & Lifescapes (VLL PM) | Rating Change Lacking a near-term catalyst Share Price: PHP6.34 | Target Price: PHP6.80(+7%) | MCap (USD): 1.2B | ADTV (USD): 1M Downgrade to a contrarian HOLD on delays in project launches. Cut forecast for 2014 real estate revenue by 9%, net income 16%. Move to build up recurring revenue base exciting but likely to be realized only in 2017. Click here for report » Q&M Dental Group (QNM SP) | Company Update Healthcare fund takes 10% stake Share Price: SGD0.48 | Target Price: SGD0.55(+15%) | MCap (USD): 232M | ADTV (USD): 0.8M Heritas Helios Investments�s decision to take a 10% stake in Q&M at market price underscores its confidence. Vendor share sale, mainly from Quan Min Holdings. With sale, moratorium and service agreements extended. Ample M&A-driven upside; China business IPO a major catalyst. Maintain BUY with an unchanged TP of SGD0.55. Click here for report » COMPANY NOTES Mapletree Logistics Trust (MLT SP) | Company Update First Gen (FGEN PM) | Rating Change Ann Joo Resources (AJR MK) | R e s u l t s Review UMW Holdings (UMWH MK) | Company Update UEM Sunrise (UEMS MK) | Results Review Mapletree Logistics Trust (MLT SP) MLT expands in South Korea Share Price: SGD1.17 | Target Price: SGD1.01(-13%) | MCap (USD): 2.3B | ADTV (USD): 3M MLT acquires Daehwa Logistics Centre, its ninth property in South Korea, for SGD31.2m which is to be fully debt funded. At an initial NPI yield of 8.3%, it is a DPU-accretive acquisition. A positive move but too small to �move the needle� for MLT. Reiterate SELL with a higher TP of SGD1.01. Click here for report » First Gen (FGEN PM) TP higher on improved 2015 outlook Share Price: PHP20.00 | Target Price: PHP22.80(+14%) | MCap (USD): 1.6B | ADTV (USD): 2M Upgrade to BUY and raise TP to PHP22.80 from PHP20.94 on better forecasts. 1Q14 earnings down 22.7% YoY but in line with expectations. Profit outlook to improve next year driven by EDC. (FULL REPORT TO BE OUT SOON) Ann Joo Resources (AJR MK) Brighter days ahead Share Price: MYR1.15 | Target Price: MYR1.60 (+39%) | MCap (USD): 189M | ADTV (USD): 0.0M 1Q14 results above expectations on a surge in sales volume. Potential trade actions against dumping by early-2015. Upgrade to BUY with a higher TP of MYR1.60 (+33%). Click here for report » UMW Holdings (UMWH MK) Improving outlook Share Price: MYR10.80 | Target Price: MYR12.44 (+15%) | MCap (USD): 3.9B | ADTV (USD): 3.5M UMWH's fundamentals remain intact with improving outlook for its Auto, O&G and M&E divisions. UMWH is a Shariah-compliant stock in the KLCI index with undemanding valuations and decent net yields (4+%). Reiterate BUY with unchanged SOP-based TP of MYR12.44. Click here for report » UEM Sunrise (UEMS MK) Lack of land sales Share Price: MYR2.23 | Target Price: MYR2.12 (-5%) | MCap (USD): 3.2B | ADTV (USD): 2.0M 1Q14 net profit of MYR61.5m (-71% YoY, -21% QoQ) was in line. 2H14 earnings should be stronger, driven by land sales. Maintain HOLD with an unchanged MYR2.12 TP (on 0.51x P/RNAV; MYR4.15 RNAV). Click here for report » ECONOMICS Singapore Econs IPI, Apr �14 Slows after strong start to the year Industrial production growth slowed in Apr 2014 to +4.6% YoY (Mar 2014: +12.1% YoY) after a robust Feb-Mar 2014. Higher biomedicals output countered lower electronics production. Industrial output � notably electronics � may be heading into choppy waters now. Maintain our full-year forecast of +5.0% (2014 YTD: +8.4%; 2013: +1.7%). Click here for report »