Regional Daily, Maybank KE (2014-11-19)

Daily 19 November 2014 TOP VIEWS Singapore Strategy | NEUTRAL Indonesia Strategy COSCO Pacific (1199 HK) | Company Update Robinsons Retail Holdings (RRHI PM) | Results Review Singapore Strategy Strategy 3Q round-up Consumer & oil & gas mostly missed earnings expectations. Headwinds emerging for oil & gas. Nam Cheong and POSH removed from top BUY list. Banks, especially DBS, beat for third quarter in a row. UOB added as top BUY. Still NEUTRAL on market with 2015 FSSTI target of 3,440, at 14x 2015E EPS. Top picks: DBS, UOB, FR & SingTel. Click here for report » Indonesia Strategy Strategy Impact of the fuel price hike Government raised fuel prices by 31-36%, just enough to narrow gap with international oil prices. Expect equity-market technical correction in near term but long term impact is positive. Infrastructure and healthcare sectors are likely to be the key beneficiaries. Key BUYs: ADHI, PTPP, JSMR, BBRI, BEST, GGRM, KLBF, TELE, BRMS, INCO. Click here for report » COSCO Pacific (1199 HK) Growth surges to six-month high Share Price: HKD10.48 | Target Price: HKD13.30 (+27%) | MCap (USD): 4B |ADTV (USD): 7M Throughput growth accelerated by 2.6ppt MoM to 10.4% YoY in Oct, the fastest monthly growth in six months. 10M14 throughput growth of 9.7% YoY tracks well with our FY14F of +8.8%. We see steady momentum and new project contributions to drive 12% YoY FY15F earnings growth. While removal from the HSI is a near-term negative, we expect faster earnings growth and potential acquisitions to underpin share price performance in the next 12 months. Click here for report » Robinsons Retail Holdings (RRHI PM) Expansion pains soften 3Q14 EBIT Share Price: PHP72.00 | Target Price: PHP91.00 (+26%) | MCap (USD): 2.2B | ADTV (USD): 3M 9M14 net income up 33% on robust sales and higher EBIT plus boost from net interest income. Higher opex as percentage of sales due to new stores, softening EBIT growth to 12% in 9M14. Maintain BUY as forecasts and target price unchanged. (FULL REPORT WILL BE OUT SOON) COMPANY NOTES Champion REIT (2778 HK) | Company Update Lafarge Malaysia (LMC MK) | Results Review Dialog Group (DLG MK) | Results Review MBM Resources (MBM MK) | Results Review CIMB Group Holdings (CIMB MK) | Results Review Hartalega (HART MK) | Results Review Sunway (SWB MK) | Results Review TSH Resources (TSH MK) | Results Review Padini Holdings (PAD MK) | Company Update Champion REIT (2778 HK) Steady progress Share Price: HKD3.48 | Target Price: HKD3.70 (+6%) | MCap (USD): 2.6B | ADTV (USD): 2M Several weeks ago, CREIT leased 2 floors of Citibank Plaza to a medical clinic and another floor to a Chinese financial firm. It expects end-2014 Citibank Plaza vacancy to be 24-25%. If it continues leasing roughly 1% office space every 2 months, we can project mid-2015 vacancy to drop to 20-21%. Media sources say that we can expect the barriers set up by Occupy Central efforts in Mongkok to be cleared soon, in time before X�mas, a high season for sales at Langham Place. CREIT sees 2H retail sales growth at mall to be double digit. CREIT yields 5.5% distribution yield for 2015E, 364bps above the HK 10-year EFN, which appears to have some upside. Click here for report » Lafarge Malaysia (LMC MK) Waiting to raise ASPs Share Price: MYR10.14 | Target Price: MYR10.75 (+6%) | MCap (USD): 2.6B | ADTV (USD): 2M 3Q results were below ours and market�s expectations. Cut FY14 EPS by 25% to impute the weak results. TP unchanged at MYR10.75 (21x mid-2016 PER). Downgrade to HOLD on limited upside. Dividend yield of 4% is decent. Click here for report » Dialog Group (DLG MK) RAPID & Pengerang to fuel growth Share Price: MYR1.53 | Target Price: MYR1.90 (+24%) | MCap (USD): 2.3B | ADTV (USD): 4M 1QFY6/15 results within our expectation, below consensus. A steady stock with sound business model and management. Reiterate BUY and MYR1.90 TP (SOP-based) with upside bias. Click here for report » MBM Resources (MBM MK) Stronger ahead Share Price: MYR2.82 | Target Price: MYR3.50 (+24%) | MCap (USD): 329M | ADTV (USD): 0.1M 9M14 earnings within our forecast but below consensus. Cheapest exposure to our preferred small car segment, in light of higher cost of living, via 22.6%-owned Perodua. Our FY14/15/16 forecasts are raised by 2% p.a.. New TP of MYR3.50 (+2%) is based on unchanged 9x FY15 PER. BUY. Click here for report » CIMB Group Holdings (CIMB MK) Poor showing as expected Share Price: MYR6.20 | Target Price: MYR7.40 (+19%) | MCap (USD): 15.4B | ADTV (USD): 12M 9M14 core net profit down 7% YoY mainly due to drag from CIMB Niaga and weak capital markets. Forecasts maintained but near term risk is to the downside with guidance for higher provisions out of Indonesia in 4Q14. Maintain HOLD on CIMB; BUY RHB for exposure to the merged entity. Click here for report » Hartalega (HART MK) Near-term weakness Share Price: MYR6.80 | Target Price: MYR7.00 (+3%) | MCap (USD): 1.5B | ADTV (USD): 0.5M 2Q below expectations due to high start-up cost of its next generation glove manufacturing complex (NGC). Expect weakness in near-term earnings on start-up costs. Cut FY3/15-16 EPS by 7-8%; TP lowered to MYR7.00 (19x mid-2016 PER) and downgrade to HOLD (from BUY). Click here for report » Sunway (SWB MK) Earnings on track Share Price: MYR3.24 | Target Price: MYR3.05 (-6%) | MCap (USD): 1.7B | ADTV (USD): 1M 9M14 core net profit of MYR386m (+19% YoY) was in line. May not be able to achieve MYR2.5b construction job win target for FY14. Maintain earnings forecasts, HOLD rating and MYR3.05 TP (on 0.59x P/RNAV target). (FULL REPORT WILL BE OUT SOON) TSH Resources (TSH MK) 3Q14: In line Share Price: MYR2.25 | Target Price: MYR2.45 (+9%) | MCap (USD): 608M | ADTV (USD): 0.6M Results within our expectation but above consensus. Young tree age profile would drive strong production growth. BUY with an unchanged TP of MYR2.45 on 19x 2015 PER. Click here for report » Padini Holdings (PAD MK) Stable growth, attractive yields Share Price: MYR1.75 | Target Price: MYR2.20 (+26%) | MCap (USD): 344M | ADTV (USD): 0.5M Looking at moderate 6-7% YoY revenue growth in 1QFY6/15, but this should pick up as new stores are opened. Trimmed FY15-FY17 net profits by 2% per annum on lower sales growth and margin assumptions. BUY - TP unchanged at MYR2.20 on 14.8x FY15 PER, dividend yield attractive at 5.7%, providing support to share price. Click here for report »