Affin Daily Insight (LV) - 1 April 2014 - TRANSPORT&LOGISTICS / BANKING / JTI / ASTRO / PGAS / BAB / DMR

Top Calls

Sector Update � Transport & Logistics (OVERWEIGHT, maintain) - Exports and tourism should drive demand in 2014 The three factors we expect to underpin the local transport & logistics sector this year are Malaysian tourism, a better demand-supply mix within Asia Pacific airlines and a recovery in exports. The MH370 tragedy undoubtedly has affected the Visit Malaysia Year 2014 campaign, which has been suspended for now. While tourist arrivals may decline in the near term, we do not expect the effect to be prolonged. For exposure to airlines, we continue to prefer AirAsia (BUY; TP: RM3.25) over MAS (SELL; TP: RM0.14) for AirAsia�s lean cost structure, which should give the group a pricing advantage in the current competitive environment. For the export-recovery theme, we continue to like Malaysia MISC. We maintain our ADD rating on MISC and raise our SOTP-based target price to RM7.40 (from RM7.10), as we roll over our valuation horizon to 2015. Maintain OVERWEIGHT.

Other Calls

Sector Update � Banking (OVERWEIGHT, maintain) - Feb 2014: A seasonally weaker month

Company Update � JT International (BUY, upgrade) - An attractive offer�goodbye JTI Malaysia

Results Note � Astro (ADD, maintain) - Better than expected results

Flash Note � PGas (REDUCE, maintain) - A new era, earnings more dependent on gas volumes

Flash Note � Bumi Armada (ADD, maintain) - Bumi Armada wins its largest FPSO contract

Debt Market Research - Thanks Yellen for the risk-on sentiment

Morning News & Market Summary

For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports.

Unsubscribe You are currently subscribed to receive this email newsletter daily. If you no longer want to receive our email newsletter - Go here to unsubscribe and we will promptly remove you from our mailing list.

Privacy Affin Investment Bank Berhad respects your privacy and is committed to protecting the confidentiality and security of personal information provided to us. We will not use your personal information in this email newsletter or sell your email address to a third party. Go here to contact us. We welcome questions about our use of your personal information provided to us, or your comments about information that you would like to see incorporated in this newsletter.