[Maybank Kim Eng] Today's Research - Malaysia

g Company Research - AirAsia Bhd: The underdog will have its day | Mohshin Aziz - MPHB Capital: Rawang project launched | Desmond Ch'ng g Sector Research - Malaysia Ports: Tariff hikes at Port Klang | OVERWEIGHT | Yen Ling Lee g Macro Research - Malaysia: Technicals - Index may re-test 1,685 soon | Lee Cheng Hooi - Malaysia: Other News - | Malaysia Research Team

MY: AirAsia Bhd (AIRA MK) Share Price: MYR1.34 Target Price: MYR2.32 Recommendation: Buy Mohshin Aziz (603) 2297 8692 mohshin.aziz@maybank-ib.com Results Preview: The underdog will have its day FYE Dec (MYR m) FY13A FY14A FY15E FY16E Revenue 5,111.8 5,415.7 5,506.7 5,723.7 EBITDAR 1,704.8 1,769.1 2,293.7 2,248.1 Core net profit 556.7 405.3 806.0 720.5 Core EPS (sen) 20.0 14.6 29.0 25.9 Core EPS growth (%) (20.5) (27.2) 98.8 (10.6) Net DPS (sen) 4.0 0.0 0.0 0.0 Core P/E (x) 6.7 9.2 4.6 5.2 P/BV (x) 0.7 0.8 0.7 0.6 Net dividend yield (%) 3.0 0.0 0.0 0.0 ROAE (%) 10.7 8.5 16.2 12.5 ROAA (%) 3.3 2.2 3.8 3.1 EV/EBITDAR (x) 8.7 10.7 6.6 7.1 Net debt/equity (%) 175.5 249.9 211.9 201.8 §  BUY ahead of anticipated strong 2Q15 results, to be released on 20 Aug. §  Too much negative focus on Indonesian associate, bright sparks have been completely ignored. §  Maintain BUY with a reduced TP of MYR2.32 (from MYR2.45) after de-rating to 8x FY15 PER (from 9x FY15 PER). MY: MPHB Capital (MPHB MK) Share Price: MYR1.72 Target Price: MYR1.90 Recommendation: Hold Desmond Ch'ng (603) 2297 8680 desmond.chng@maybank-ib.com Company Update: Rawang project launched FYE Dec (MYR m) FY13A FY14A FY15E FY16E Revenue 246.0 370.1 398.0 431.0 EBITDA 46.1 264.8 60.4 63.6 Core net profit 48.2 54.1 45.1 40.2 Core EPS (sen) 6.7 7.6 6.3 5.6 Core EPS growth (%) (24.5) 12.2 (16.7) (10.8) Net DPS (sen) 0.0 0.0 0.0 0.0 Core P/E (x) 25.5 22.7 27.3 30.6 P/BV (x) 1.1 0.9 0.8 0.8 Net dividend yield (%) 0.0 0.0 0.0 0.0 ROAE (%) 4.5 4.5 3.1 2.6 ROAA (%) 2.2 2.2 1.6 1.3 EV/EBITDA (x) 19.4 3.5 8.5 8.0 Net debt/equity (%) net cash net cash net cash net cash §  Rawang project launched but no contributions from Phase 1 expected. §  No word yet on the group’s capital position, quiet in terms of corporate developments. §  HOLD – deeply discounted but lacking catalysts. SOP-based TP lowered further to MYR1.90 from MYR2.07. MY: Malaysia Ports Recommendation: Overweight Yen Ling Lee (603) 2297 8691 lee.yl@maybank-ib.com Sector Note: Tariff hikes at Port Klang | OVERWEIGHT §  We estimate gateway terminal handling charges hike of 13% (wef Sep 2015) and 11% (wef Sep 2018); or +26% in 3 years. §  Timing and quantum are ahead of our expectations. §  Maintain BUYs with higher TPs for Westports (MYR4.80; +2%) and NCB (MYR5.70; +10%). MY: Technicals Lee Cheng Hooi (603) 2297 8694 chenghooi.lee@maybank-ib.com Technical Research: Index may re-test 1,685 soon §  TENAGA - On a very strong downward Wave 3 and 5 move. §  FBMKLCI – Index may re-test the 1,685 support soon. §  Supports of 1,660 and 1,685 will be weaker. §  Resistances of 1,694 and 1,724 will cap rebounds. MY: Other News Malaysia Research Team Technical Research: Malaysia —    Logistics: KLAS, Raya Airways bag cargo and logistic job for LCCT —    AirAsia: No reply from MAHB yet on MYR409m klia2 lawsuit —    MCIL: Braces for challenging FY16 —    Hibiscus Petroleum: Buys 50% of Anasuria Cluster Outside Malaysia —    U.S: Jobless claims hover near lowest in four decades —    Germany: Manufacturing orders surge in sign of robust growth —    UK: Industrial production unexpectedly fell in June