Regional Daily, Maybank KE (2014-03-19)

Daily 19 March 2014 TOP VIEWS Bekasi Fajar (BEST IJ) | Flash Note Robinsons Retail Holdings (RRHI PM) | Results Review MY & SG Oil & Gas Sector | OVERWEIGHT Bekasi Fajar (BEST IJ) CFO resigns Share Price: IDR655 | Target Price: IDR500 (-24%) | MCap (USD): 557M | ADTV: USD1M Maintain HOLD with TP of IDR500 as company announces resignation of CFO and Non-Affiliated Director, Mr Wilson Effendy. Note that CEO of sister company Alam Sutera (ASRI), Mr Tri Ramadi, also resigned in November 2013. We think the resignation is a loss to the company. In addition to being CFO, Mr Effendy was a good communicator with investors. Click here for report » Robinsons Retail Holdings (RRHI PM) Expansion gaining momentum Share Price: PHP67.60 | Target Price: PHP77.50 (+16%) | MCap (USD): 2.1B | ADTV: USD2M No surprises in 2013 results. Maintain BUY and Street-high PHP77.50 target price. Adjusted earnings grow 151% in 2013, up 124% YoY in 4Q13. Higher sales and margins to remain key drivers in 2014F. Click here for report » Sector update MY & SG Oil & Gas Sector Ideas-driven Interest is wide ranging but most funds tend to be bottom-up driven and stock-selective. We see strong thematics (i.e. rig building, drilling, OSV upcycles, PETRONAS capex) driving the sector this year. Maintain OVERWEIGHT. Our top BUYs are Bumi Armada, Dialog, SAKP, Perisai and Perdana for Malaysia, and SembCorp Marine, Ezion, Mermaid and Nam Cheong for Singapore. Click here for report » COMPANY NOTES Tata Consultancy Services(TCS IN) | Company visit Mphasis(MPHL IN) | Results Review Q&M Dental Group (QNM SP) | Company update Suntec REIT (SUN SP) | Rating Change Tata Consultancy Services(TCS IN) Maintains strong demand outlook Share Price: INR2,123 | Target Price: INR2,590 (+22%) | MCap (USD): 68.1B | ADTV (USD): 4M TCS reiterates at analyst meeting that the business environment for IT outsourcing remains stronger for FY15 vs. FY14. We expect TCS to deliver 4QFY14 revenue growth (in USD) of 3.5% QoQ and 17.1% YoY. Maintain BUY with TP of INR2,590. We remain confident on TCS� ability to outperform the industry in FY15-16. Remains one of our top picks among IT services large-caps. Full Report Will Be Out Soon Mphasis(MPHL IN) Non-HP business to drive growth Share Price: INR402 | Target Price: INR492(+22%) | MCap (USD): 1.4B | ADTV (USD): 0.6M Maintain BUY with TP of INR492 based on PER of 12x FY14F (20% discount to peers). 1QFY14 (Yr to Oct) EPS of INR8.9, inched down 1.7% QoQ but up marginally 1.4% YoY, in line with our expectations. Revenue (in USD) flat QoQ. Trades at attractive valuation at current PER of 10x FY14F and dividend yield of 4.6%. Utilisation of net cash of INR21b (25% of MCap) for acquisitions remains a catalyst. Click here for report » Q&M Dental Group (QNM SP) Complementary acquisitions Share Price: SGD0.40 | Target Price: SGD0.48 (+20%) | MCap (USD): 192M | ADTV (USD): 0.7M Q&M has announced the EPS-accretive acquisition of Foo & Associates Dental Surgeons in Singapore at 10.5x P/E. It is also one step closer to completing the deal for Qinhuangdao Aidite High-Technical Ceramics in China. Longer-term impact of the complementary acquisitions will outweigh the short-term positive contribution from Dr Foo. Click here for report » Suntec REIT (SUN SP) Costly way to pare down debt Share Price: SGD1.69 | Target Price: SGD1.63(-4%) | MCap (USD): 3.0B | ADTV (USD): 9M SGD350m private placement exercise to reduce FY14 debt represents 9.6-9.9% pre-placement dilution. Aggregate leverage will fall to 35% from 39.1%, with debt expiration rising to 3.6 years from 2.4 years. FY14E-16E DPU to drop 7.3-8.4%. Downgrade to HOLD. Full Report Will Be Out Soon     Click here for full Regional Daily report »