Regional Daily, Maybank KE (2014-04-17)

Daily 17 April 2014 TOP VIEWS China Economics SP: Ezion Holdings (EZI SP) | Flash Note SP: Keppel Corp (KEP SP) | Results Review China Economics China GDP 1Q 2014 Growth anxiety China�s economy expands by 7.4% YoY and 1.4% QoQ (seasonally adjusted) in 1Q 2014, down from 7.7% YoY and 1.7% QoQ in 4Q 2013. Trimming slightly our full-year growth forecast to 7.3% from 7.5%. Key thing to watch: policy responses given downside risk to official full-year 7.5% growth target. We have already seen shift in exchange rate policy and mini-fiscal stimulus announcement. Keep eyes on handling of emerging debt problems and shadow banking issue, as well as potential further adjustments in monetary/banking policy, especially on liquidity measures. Click here for report » SP: Ezion Holdings (EZI SP) More funds to lift growth Share Price: SGD2.13 | Target Price: SGD2.70 (+27%) | MCap (USD): 2.0B | ADTV: USD12M Secures two new three-year liftboat contracts worth a total of USD78.7m, with deployment by 1H15. Places 100m new shares to Malaysian tycoon Quek Leng Chan at SGD1.94/share, a 9.6% discount to VWAP a day ago. Maintain BUY, TP trimmed to SGD2.70 on share dilution. Click here for report » SP: Keppel Corp (KEP SP) Slowly but surely gaining ground Share Price: SGD11.17 | Target Price: SGD12.48 (+12%) | MCap (USD): 16.2B | ADTV (USD): 29M 1Q14 results within expectations, with a 5.1% YoY dip in PATMI to SGD338.7m due mainly to one-offs a year ago. O&M operating margin held steady both QoQ and YoY at 14.2%. Net orderbook stands at a record SGD14.4b with SGD1.9b worth of new orders secured in the first quarter. Maintain BUY and SOTP-based TP of SGD12.48. Click here for report » COMPANY NOTES MK: CapitaMalls Malaysia Trust (CMMT MK) | Results Review MK: Hartalega Holdings Bhd (HART MK) | Company Update TB: TISCO Financial Group (TISCO TB) | Results Review MK: CapitaMalls Malaysia Trust (CMMT MK) Earnings On Track Share Price: MYR1.42 | Target Price: MYR1.74 (+23%) | MCap (USD): 0.8B | ADTV (USD): 0.4M 1Q14 net profit of MYR38.2m (+7% YoY) was in line. No DPU was declared given its bi-annual distribution policy. No change to earnings forecasts and MYR1.74 TP. Maintain BUY. CMMT currently offers a net yield of 6.1% (vs. industry�s 6.2%). Click here for report » MK: Hartalega Holdings Bhd (HART MK) Keeping a cool head Share Price: MYR6.48 | Target Price: MYR6.70 (+3%) | MCap (USD): 1.5B | ADTV (USD): 1.5M 4QFY3/14 results could be weaker on price competition. However, we think this is a near-term blip and earnings will be on a growth trajectory again from FY3/16. Maintain HOLD with slightly lower TP of MYR6.70. Click here for report » TB: TISCO Financial Group (TISCO TB) Weak 1Q14 results in line Share Price: THB41.75 | Target Price: THB42.50(+2%) | MCap (USD): 1.0B | ADTV (USD): 2M Maintain HOLD and TP of THB42.5 based on our GGM with 18% long term ROE, 14.4% COE and 3% growth, implying 1.3x 2014 P/BV. 1Q14 earnings drop 19% YoY to THB935m, 2% below our estimate, due to weak fee income and higher provisioning but up 16% QoQ because of extra provisions in 4Q13. Cut FY14F earnings by 2% to THB4.6bn to reflect the weaker-than-expected non-interest income in 1Q14. (FULL REPORT WILL BE OUT SOON) ECONOMICS Malaysia Economics Malaysia CPI, Mar 2014 Steady but stays elevated Inflation rate stays elevated but steady in Mar 2014 at +3.5% YoY, the same as Feb 2014. Our measure of core inflation (excluding the key subsidised components of CPI) edges to +2.0% YoY (Feb 2014: +1.9% YoY). YTD CPI inflation at 3.4% YoY more than doubled the 1.5% YoY posted in Jan-Mar 2013. No change in our full-year inflation rate forecast of 3.5%. (FULL REPORT WILL BE OUT SOON)