Regional Daily, Maybank KE (2014-12-31)

Daily 31 December 2014 TOP VIEWS Malaysia Strategy - Flood disaster Astra Agro Lestari (AALI IJ) AirAsia Bhd (AIRA MK) Malaysia Strategy - Flood disaster Strategy Flood disaster: Assessing the impact Floods in eastern Peninsular states have hit critical level. Restoration to be costly, PLCs not materially affected. No change in our stock, sector or market views/calls. Click here for report » Astra Agro Lestari (AALI IJ) At cruising speed Share Price: IDR23,750 | Target Price: IDR28,000 (+18%) | MCap (USD): 3.0B | ADTV (USD): 3M Maintain BUY but lower TP to IDR28,000 (from IDR35,000) as we cut 2015F earnings by 30.9%. Production growth set to grow at 5%-10% CAGR over next three years as planted areas entering maturity age are more than enough to offset post-prime/replanting age. Still one of the largest and better managed palm oil plantations in Indonesia with good corporate governance and strong balance sheet (near net cash). Click here for report » AirAsia Bhd (AIRA MK) Rest in peace flight QZ8501 Share Price: MYR2.74 | Target Price: MYR3.25 (+19%) | MCap (USD): 2.2B | ADTV (USD): 7M Debris and human bodies are spotted off the Straits of Karimata and is confirmed to be that of flight QZ8501. Efforts to retrieve all victims and search for the final resting place of the aircraft is still on-going, should be fairly soon. Our earnings forecasts for AirAsia, BUY call and target price remain under review. Click here for report » COMPANY NOTES Malaysia Strategy - Fund flows Strategy December fund flows MYR2.8b foreign net sell in December, MYR6.8b YTD. We continue to advocate a defensive strategy for equities. No change in our market, sector and stock views/calls. Click here for report »