Regional Daily, Maybank KE (2014-04-03)

Daily	03 April 2014
TOP VIEWS Samsung Electronics (005930 KS) | Company Update Samsung - Prefs. shares | Company Update Trans-Asia Oil & Energy Dev�t (TA PM) | Company Update Noble Group (NOBL SP) | Comapny Update Samsung Electronics (005930 KS) | Company Update Earnings muted, but don�t hang up Share Price: KRW1.357m | Target Price: KRW1.500m (+11%) | MCap (USD): 188.8B | ADTV (USD): 289M Cut FY14F OP by 7% and introduce FY15F forecasts, both 2% below consensus. But Street earnings revisions bottoming and imminent share buyback could support the share price. Profit from IM remains the swing factor. It�s aiming high-end smartphones at saturated market, while competition in mid-tier segment heating up, although it may gain sizeable share in tablets. Further IP litigation/provision may dent earnings. Maintain HOLD and KRW1.5m TP. We think SEC�s preferred shares [005935KS, BUY] offer better value and upside. Click here for report » Samsung - Prefs. shares | Company Update A great value play & getting better Share Price: KRW1.048m | Target Price: KRW1.350m (+29%) | MCap (USD): 22.6B | ADTV (USD): 38M We examine the impact of the potential share repurchase as SEC�s cash reserves could escalate to USD55bn in FY14 and to USD78bn in FY15 with FCF approaching mid-teens. Should SEC budget a third of its FCF for capital management or 30% pay out, it could outlay an annual �USD5bn for share repurchase in addition to �USD2.8bn of cash dividend. Such scenario could lead SEC buy back �3.5% of its preferred shares, making the preferred shares a greater value play! Click here for report » Trans-Asia Oil & Energy Dev�t (TA PM) All eyes on project completions Share Price: PHP2.02 | Target Price: PHP2.82(+40%) | MCap (USD): 219M | ADTV: USD0.4M Maintain BUY on under-researched name with revised TP of PHP2.82, implying potential 40% upside. 4Q13 operating income hit by spike in electricity spot prices, but reversal of losses highly possible. Growth expected to accelerate in 2015 with full-year contributions of around 209MW of new capacity. Click here for report » Noble Group (NOBL SP) COFCO deal: may not a good timing Share Price: SGD1.26 | Target Price: SGD1.13(-10%) | MCap (USD): 6.6B | ADTV (USD): 23M Noble has agreed to sell a 51% stake in its agriculture division to China�s COFCO for about USD1.5b. But we do not think the timing is ideal as this deal could result in a major dilution for shareholders. Maintain HOLD with a higher TP of SGD1.13, pegged to 1x FY14E P/BV. FULL REPORT WILL BE OUT SOON COMPANY NOTES Catcher Technology (2474 TT) Not the best catch: stay at HOLD Share Price: TWD226.50 | Target Price: TWD220.00(-3%) | MCap (USD): 5.6B | ADTV (USD): 48M Raise TP to TWD220 to factor in better Sony demand in 1H14 and 12x 2014F PE. Maintain HOLD as the Street�s upward earnings revision appears close to the peak. Management has toned down the Samsung metal casing order win expectation. Further re-rating unlikely as the company will throw all its eggs into one basket by fully concentrating only on iPhone 6 4.7 inch in 2H14/2015F (not diversify any further). Click here for report »     Click here for full Regional Daily report »