Regional Daily, Maybank KE (2015-03-04)

Daily 04 March 2015 TOP VIEWS HK/China Consumer Staples | OVERWEIGHT Singapore Strategy | NEUTRAL Macau Gaming | NEUTRAL Malaysia Banking | NEUTRAL HK/China Consumer Staples Sector Update FY14 earnings preview & outlook Maintain O/W on sector as we believe favorable raw material costs, product differentiation and more rational competition will boost EPS growth in FY15 despite weak sales. Sector�s valuation is undemanding against global staples peers on various metrics, plus better long-term growth opportunities on far below global income and penetration. We anticipate earnings surprise in upcoming month will be tilted more towards downside with the exception of China Mengniu which has already guided up. Click here for report » Singapore Strategy Strategy 4Q round-up - A rough patch Oil & gas, property developers & banks mostly missed 4Q/FY14 expectations. Poor earnings quality even for those that beat. Still NEUTRAL on market with unchanged 2015 FSSTI target of 3,440, at 14x 2015E EPS. Banks still our preferred sector. Top picks: DBS, UOB, FR, Singtel. Top SELLs: Cosco, SMM, SIA Engineering. Click here for report » Macau Gaming Sector Update A month to forget Feb 2015 Macau GGR plunged 49% YoY to MOP19.5b, the lowest level in 48 months. Poor performance due to high Feb 2014 base and later CNY this year. That said, other near-term risks exist. Maintain NEUTRAL call. Prefer Galaxy Entertainment and MGM China. Click here for report » Malaysia Banking Sector Update A year of fund raising Core net profit growth cut to 7% in 2015 from 9%, 4% growth excluding CIMB. Sector ROE to decline to 12.8% from 13.5%. Primary challenge is liquidity, NIM compressing further this year. Potential MYR5b cash calls from HL Bank, HLFG & RHB. Still NEUTRAL. BUY AFG, HL Bank, HLFG and RHB. Click here for report » COMPANY NOTES Puravankara Projects (PVKP IN) | Company Visit Indofood CBP (ICBP IJ) | Company Update Lafarge Malaysia (LMC MK) | Company Update Star Publications (STAR MK) | Rating Change Philippine Long Distance Telephone (TEL PM) | Transfer Coverage Puravankara Projects (PVKP IN) Sturdy project pipeline Share Price: INR80 | Target Price: INR118 (+48%) | MCap (USD): 306M | ADTV (USD): 0.3M Maintain BUY with TP of INR118 - 30% discount to NAV During our recent interaction, management reaffirmed strong demand for its five new project launches in the next six months (four in mid-end housing and one in affordable housing). These projects worth INR30b would generate presales of INR15b in FY16. We forecast PVKP's recurring profit to rise 93% in FY16 and 90% in FY17. (FULL REPORT WILL BE OUT SOON) Indofood CBP (ICBP IJ) Growth plan on track Share Price: IDR14,325 | Target Price: IDR16,000 (+12%) | MCap (USD): 6.5B | ADTV (USD): 3M ICBP plans to acquire 10% stake in JC Comsa, a Japanese food company, for USD2.4m. We are positive on this move because it provides potential synergies that can help ICBP capture the growing consumer demand in Indonesia. Meanwhile, we also expect demand recovery to kick in by 2Q15F and margin pressure to ease. Maintain BUY. Click here for report » Lafarge Malaysia (LMC MK) Unexciting for now Share Price: MYR10.12 | Target Price: MYR9.30 (-8%) | MCap (USD): 2.4B | ADTV (USD): 1M Earnings ahead could be better on resumption of production. Lacks solid catalyst and stock trades at +1SD to mean PER; supported, however, by a DY of 3.4%. Maintain HOLD and TP of MYR9.30 (22x FY16 PER). Click here for report » Star Publications (STAR MK) Exercising caution Share Price: MYR2.56 | Target Price: MYR2.65 (+4%) | MCap (USD): 521M | ADTV (USD): 0.2M 2015 YTD adex sentiment has been markedly weak. Re-rating catalyst from FTA TV stations may not materialise. Maintain SOP-based TP of MYR2.65 but downgrade to HOLD. Click here for report » Philippine Long Distance Telephone (TEL PM) Competition weighs on 4Q profit Share Price: PHP3,098.00 | Target Price: PHP3,482.00 (+12%) | MCap (USD): 15.2B | ADTV (USD): 13M Transfer coverage to Michael Bengson. FY14 core net income was PHP37.4b, 6% lower than forecast but slightly above revised guidance of PHP37.0b. We believe competition will remain an issue this year, forecasts and TP are under review. Click here for report »