Regional Daily, Maybank KE (2015-01-14)

Daily 14 January 2015 TOP VIEWS China/HK Utilities & Renewable Energy Bank Rakyat Indonesia (BBRI IJ) | TP Revision Malaysia Gloves Sector | OVERWEIGHT Metro Pacific Investments (MPI PM) | TP Revision China/HK Utilities & Renewable Energy Marketing Feedback We finished marketing in Singapore, Malaysia and Hong Kong where we met with around 60 investors. Investors agree with our view that nuclear power is essential for China to replace part of base load from coal-fired. Chinese LT development of nuclear power and attractive equity IRR of nuclear projects could benefit CGN Power. Investors are also optimistic about wind power sector. High base effect in 2013 has ceased. UHV cable development and capacity growth could help boost earnings of wind power operators. Click here for report » Bank Rakyat Indonesia (BBRI IJ) Benefiting from micro segment Share Price: IDR11,825 | Target Price: IDR14,000 (+19%) | MCap (USD): 23.2B | ADTV (USD): 20M Raise TP to IDR14,000 (FY15F: 12.7x PER & 2.9x P/BV). Top BUY for 2015F. Expect strong FY14 results. Main beneficiary of Indonesian government�s plan to empower low-income segment through better credit penetration. CEO succession unlikely to change BBRI�s business direction. Click here for report » Malaysia Gloves Sector Sector Update Pent up growth ahead Industry will see increasing competition ahead due to the incoming capacities. However, mitigating factors are the high USD/MYR and low rubber prices. Maintain Overweight. We have BUYs on Hartalega (unchanged TP MYR8.50), Kossan (raised TP to MYR5.90) and Riverstone (unchanged TP SGD1.20). Click here for report » Metro Pacific Investments (MPI PM) Positive fallout from water unit Share Price: PHP5.16 | Target Price: PHP6.80 (+32%) | MCap (USD): 3B | ADTV (USD): 2M Raise earnings forecast and valuation on subsidiary Maynilad due to favourable outcome from arbitration. Adjust estimates on MER due to potential delay in final determination of rates. Raise TP to PHP6.80, maintain BUY on potential 32% upside. Click here for report » COMPANY NOTES Silverlake Axis (SILV SP) | Company Update Singapore Press Holdings (SPH SP) | Results Review Silverlake Axis (SILV SP) Mega-bank merger to be cancelled? Share Price: SGD1.23 | Target Price: SGD1.40 (+14%) | MCap (USD): 2.1B | ADTV (USD): 1M Stock reacting negatively to potential cancellation of the mega-bank merger in Malaysia. If true, contribution from RHB is not lost completely. RHB may proceed to upgrade its core banking system. Maintain BUY with unchanged SGD1.40 TP. Key risk to our TP comes from its failure to secure the RHB system upgrade. Click here for report » Singapore Press Holdings (SPH SP) Lack of exciting growth Share Price: SGD4.11 | Target Price: SGD4.10 (-0%) | MCap (USD): 4.9B | ADTV (USD): 9M 1QFY8/15 net profit down 22% YoY. Core media business remained tepid. Seletar Mall was officially opened in Nov 2014 and will start contribution from 2QFY8/15. Maintain EPS & HOLD for lack of meaningful growth & short-term catalysts. Support from 5% dividend yields. SOTP TP still SGD4.10. Click here for report »