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

Daily 10 October 2014 TOP VIEWS Malaysia Banking | NEUTRAL RFM Corp (RFM PM) | Results Preview Sime Darby (SIME MK) | Acquisition Malaysia Banking Sector Update CIMB-RHB-MBSB�s mega-merger Outright winner is MBSB with potential cash option at MYR2.82/share (+19% upside). Positive for RHB - upgrade to BUY with a higher TP of MYR10.45. Positive for OSK with a FV MYR2.64. HOLD on CIMB with an unchanged TP of MYR7.60. Click here for report » RFM Corp (RFM PM) Stronger earnings likely in 2H14 Share Price: PHP5.22 | Target Price: PHP7.00 (+34%) | MCap (USD): 408M | ADTV (USD): 0.2M Maintain BUY on under-researched stock based on PHP7 TP. Our profit forecast is 4-10% higher than guidance but we believe it is achievable. RFM maintains 2014F profit guidance at PHP900m-950m (+15-20% YoY) on stronger 2H14 sales and earnings. Impact of Royal to be better felt in 4Q14. We anticipate ice cream sales cont�d to grow in 3Q14, sustaining its recovery. (FULL REPORT WILL BE OUT SOON) Sime Darby (SIME MK) Short term pain, long term gain Share Price: MYR9.10 | Target Price: MYR10.30 (+13%) | MCap (USD): 16.8B | ADTV (USD): 13M Expect neutral-to-slight negative earnings impact in the short term if Sime successfully privatises NBPO. But we are long term positive as PNG opens up a new market and provides future expansion opportunities for the group. Maintain BUY with an unchanged TP of MYR10.20 based on 18x 2015 PER. Click here for report »     Click here for full Regional Daily report »