Regional Daily, Maybank KE (2014-04-11)

Daily	11 April 2014
TOP VIEWS China Gas Holdings (384 HK) | Flash Note Regional Plantations | NEUTRAL Filinvest Land Inc. (FLI PM) | Results Review China Gas Holdings (384 HK) Strong exposure in Northeast Share Price: HKD12.42 | Target Price: HKD15.00(+21%) | MCap (USD): 8.0M | ADTV: USD10M Russia is more likely to sign a 30 year deal to supply pipeline gas to China next month due to the crisis in Ukraine, according to Bloomberg news. If gas pipeline connecting Russia and Northeast China could be built, we expect China Gas to benefit due to its strong exposure in the region. Reiterate BUY with DCF-based target price of HKD15.00. Click here for report » Sector Update Regional Plantations Strong rebound in CPO output Malaysian CPO output in Mar 2014 (+17% MoM) has surprised on the upside, leading to higher-than-expected inventories. CPO price usually weakens towards the middle of the year; we turned Neutral on the sector as we approach mid-year. Key risk to our view is the return of a strong El Ni�o as weather models now predict a possible weak El Ni�o in 2H14. Click here for report » Filinvest Land Inc. (FLI PM) More plans for office buildings Share Price: PHP225 | Target Price: PHP310 (+38%) | MCap (USD): 836M | ADTV: USD0.4M Maintain BUY and TP of PHP2.20 as earnings growth expected to remain strong, boosted by core businesses. Aggressive investments to bolster recurring earnings base will sustain strong earnings visibility in the near-term. Additional land purchases will lead to upgrade in NAV. Click here for report » COMPANY NOTES Sesa Sterlite (SSLT IN) | Company Update Energi Mega Persada (ENRG IJ) | Company Visit Dialog Group (DLG MK) | Company Update Quill Capita Trust (QUIL MK) | Company Update M1 (M1 SP) | Company Update Sesa Sterlite (SSLT IN) | Company Update 4Q in line; commencement of iron ore mining in Goa the next trigger Share Price: INR198 | Target Price: INR252(+27%) | MCap (USD): 9.8B | ADTV (USD): 2M SSLT's parent Vedanta released 4QFY14 production data, which is broadly in line with estimates. India zinc disappointed marginally due to slow ramp-up of mining projects. However, better performance in aluminium and resumption of iron ore mining in Karnataka offset this. SSLT remains our top pick in the materials sector. Next trigger for the stock is resumption of iron ore mining in Goa for which a court decision is expected soon. Our SOTP-based TP is INR252. Click here for report » Energi Mega Persada (ENRG IJ) | Company Visit Analyst meeting takeaways; NOT RATED Share Price: IDR95 | MCap (USD): 385M | ADTV (USD): 1M Production likely to continue to grow (53% CAGR 2010-2013) on sizeable reserves (1P+2P) of 347mmboe. ENRG benefiting from ongoing rise in gas prices. Lowering interest expenses by refinancing its USD280m loans will improve its balance sheet and earnings visibility. Disposals will continue to be one of the company�s strategies for inorganic growth and one-off gains. Click here for report » Dialog Group (DLG MK) | Company Update In dispute with TLP; BUY Share Price: MYR3.69 | MCap (USD): 8.4B | Target Price: MYR3.90 (+16%) | ADTV (USD): 12.8M Enters into arbitration proceedings with Tanjung Langsat Port due to a fire incident at port facility in 2008. Premature to assess impact but should this arbitration remain unresolved, either party will take this case to court. Maintain BUY and MYR3.90 SOP-TP. Click here for report » Quill Capita Trust (QUIL MK) | Company Update Buys office from MRCB; HOLD Share Price: MYR1.11 Neutral on the latest office purchase; we remain cautious on the over-supplied office market. We estimate potential dividend accretion of +0.14sen for FY15. Maintain HOLD with MYR1.16 TP as we maintain earnings forecasts pending the completion of the acquisition. Click here for report » M1 (M1 SP) | Company Update The 10,000 Spartans; BUY Share Price: SGD3.44 | Target Price: SGD3.86(+12%) | MCap (USD): 2.5B | ADTV (USD): 2M M1 may be on the verge of securing a key condition for its Pay TV service MiBox to take off. Reiterate BUY. MiBox is reported to have almost 10,000 subscribers, which M1 needs to cross-carry exclusive content from other telcos. This could jump-start its Pay TV service and bring in new users to its network. Click here for report » ECONOMICS Malaysia Industrial Production, Feb�14 Firmer growth IP growth reaches seven month high of +6.7% YoY in Feb 2014. Expands by +5.1% YoY in Jan-Feb 2014 (Jan-Feb 2013: -0.7% YoY; 4Q 2013: +2.8% YoY), hinting at firmer real GDOP growth in 1Q 2014 (1Q 2013: +4.1% YoY; 4Q 2013: +5.1% YoY) Global manufacturing activities maintain positive momentum year-to-date but are uneven amid expansions in G3 (US, Europe, Japan) and lacklustre Large Emerging Economies, with the rest of East Asia caught in between. Click here for report »     Click here for full Regional Daily report »