Regional Daily, Maybank KE (2014-04-01)

Daily	01 April 2014
TOP VIEWS Pegatron Corporation (4938 TT) | Company update Bumi Armada (BAB MK) | Company Update China Merchants (144 HK) | Results review Pegatron Corporation (4938 TT) Stand firm on margin; BUY Share Price: TWD45.35 | Target Price: TWD55.00(+21%) | MCap (USD): 3.5B | ADTV: USD12M We believe Pegatron benefits from Apple�s diversification strategy as it successfully transformed itself to be the most reliable second source. 4Q13 OPM comparison with its peers supports our view. Better product mix, higher utilization rate, and efficiency improvement will lead to margin expansion in 2014F and 2015F. Maintain BUY and Street-high TP of TWD55. Click here for report » Bumi Armada (BAB MK) Bags Eni�s LOI for Angola�s FPSO job Share Price: MYR3.91 | Target Price: MYR5.00 (+28%) | MCap (USD): 3.5B | ADTV: USD3.3M Bare-boat charter worth USD2.9b over 12-year firm period; projected to hit 1st oil by Oct 2016. Conversion works on the FPSO will take about 31 months to complete, on USD1.5b capex plan. Maintain BUY and MYR5.00 SOP-TP. Click here for report » China Merchants (144 HK) A steady play Share Price: HKD26.65 | Target Price: HKD33.30(+25%) | MCap (USD): 8.7B | ADTV: USD13M Reiterate BUY with HKD33.30 TP based on 12-month forward NAV as we forecast 13% recurring FY14F earnings growth. Throughput should increase 12% in FY14, with full-year Terminal Link contribution. We expect 6% organic growth. Issue of Mandatory Convertible Securities (MCS) will raise finance costs in the near term. Parent underwriting the issue shows confidence in CM�s long-term prospects. Click here for report » COMPANY NOTES Hong Kong Banks | NEUTRAL Astro Malaysia Holdings | Results Review Security Banking Corp (SECB PM) | Company Update Sector Update Hong Kong Banks Feb 2014 Monetary Statistics � Slight alert on rising L/D ratio Strong RMB deposit growth due to rising RMB trade settlement Rising L/D ratio may trigger HKMA to check loan growth Maintain NEUTRAL with DSB and DSF as top BUYs Click here for report » Astro Malaysia Holdings Decent end to FY1/14 Share Price: MYR3.20 | Target Price: MYR3.37 (+5%) | MCap (USD): 5.1B | ADTV (USD): 2.5M Results within expectations. Growth slows in 4QFY1/14 but expected to reaccelerate. Maintain HOLD but tweak TP 4% higher to MYR3.37. Click here for report » Security Banking Corp (SECB PM) Boosting capital for growth Share Price: PHP106.50 | Target Price: PHP122.50(+15%) | MCap (USD): 1.4B | ADTV (USD): 1M Maintain BUY with unchanged TP at PHP122.50. Earnings estimate cut 3% and 2% in FY14-15 to account for planned PHP10b Tier 2 notes. Management ROE target of 12% in FY14 suggests earnings of PHP5.2b, higher 4% YoY. Click here for report » ECONOMICS Economics Thailand Economics Econ softens further Overall economic activities in Feb continued to soften from Jan. The current account balance continues to register surpluses mainly due to drop in imports. The political situation could become more violent in Apr as legal cases against Yingluck will be considered by public independent agencies. Protesters may get the political vacuum they want. Click here for report »     Click here for full Regional Daily report »