Regional Daily, Maybank KE (2014-10-02)

Daily 02 October 2014 TOP VIEWS Riverstone Holdings (RSTON SP) | Initiation Regional O&G Services SM Prime Holdings (SMPH PM) | TP revision Riverstone Holdings (RSTON SP) A natural fit; Initiate BUY Share Price: SGD0.94 | Target Price: SGD1.21 (+29%) | MCap (USD): 274M | ADTV (USD): 0.2M Initiate with BUY. SGD1.21 TP, at 15x FY15E P/E, in line with peer average. Earnings growth to speed up as doubling of capacity should ease growth constraints. Strong focus on customisation and leadership in cleanroom gloves differentiate it from larger peers. Click here for report » Regional O&G Services Key takeaways from Corporate Day Sector update Positive investors� traction on 13 ASEAN O&G corporates at our one-day event last week. Perdana and Ezion are our picks for OSV play while Yinson is for FPSO. KNM is an emerging renewable energy play. The AusGroup angle, on the supply base operations in Australia, is an interesting prospect, if executed well. Click here for report » SM Prime Holdings (SMPH PM) Potential value accretion Share Price: PHP18.32 | Target Price: PHP21.83 (+19%) | MCap (USD): 11.4B | ADTV (USD): 5M Maintain BUY and raise NAV and TP to PHP27.29 and PHP21.83 as we roll over to 2015. Bonifacio South property could become part of land bank. Scenario analysis shows potential 9% increase in TP. Click here for report » COMPANY NOTES Sino Grandness (SFGI SP) Axiata Group (AXIATA MK) Tech-Tracks Sino Grandness (SFGI SP) A relief of liquidity pressure Share Price: SGD0.67 | Target Price: SGD0.73 (+10%) | MCap (USD): 306M | ADTV (USD): 1.0M Maintain HOLD with lower TP of SGD0.73 from SGD0.76 after private placement of 86m new shares at SGD0.61 apiece. Introduced two strategic investors, TTA and PM Group, via private placement. Liquidity pressure eased but long-term synergies unclear. Click here for report » Axiata Group (AXIATA MK) XL finalising its tower sale Share Price: MYR7.01 | Target Price: MYR7.60 (+8%) | MCap (USD): 18.3B | ADTV (USD): 18M Positive on XL�s sale of 3,500 towers for IDR5,600b, or USD132k per tower. Proceeds to pare down USD500m shareholder loan extended by Axiata for Axis acquisition. Bumper dividend unlikely at Axiata, but a YoY increase in DPS is highly probable. Reiterate BUY. Click here for report » Tech-Tracks Red October Quantitative Strategy Most markets in Asia ex-Japan (notably, Hong Kong) made key highs in early September and are now showing signs of downside bias. The lackluster trading environment is also exacerbated by foreign funds selling down most emerging markets, and re-allocating to US and to capitalize on USD strength. Top BUYs: PT Bank Central Asia Tbk (BBCA IJ), Chularat Hospital PCL (CHG TB), First Gen Corporation (FGEN PM) and Fit Investment JSC (FIT VN). Top SELLs: Alam Maritim Resources Berhad (AMRB MK), SPT Energy Group Inc (1251 HK) and Sembcorp Industries Ltd (SCI SP). Click here for report » ECONOMICS Core inflation rose at slower pace Fuel Subsidy Rationalisation Thailand Economics Energy reform � limited impact Economics Headline inflation eased further in September, declining for the fourth consecutive month and is now at the slowest pace since December; core inflation slowed. As global oil prices have fallen, energy reform price restructuring is expected to have limited impact on short-term inflation outlook. Next year, there will still be upside risks to inflation from the demand side. We expect BoT to keep key rate at 2.00% at the meeting in November and December. Next year, we expect a 25bps increase, but not until 2H15. Click here for report » Malaysia Economics Another 20 sen per litre hike Economics RON95 petrol and diesel prices raised by 20 sen to MYR2.30 per litre and MYR2.20 per litre respectively effective today. Maintain our 2014 inflation rate forecast of 3.5%, but adjust 2015 inflation rate projection to 4.5%-5.0% from 4.0%-4.5%. The move sends a clear message of the Government�s commitment to fiscal reform. Click here for report »