Regional Daily, Maybank KE (2014-05-06)

Daily 06 May 2014 TOP VIEWS Singapore Banks | OVERWEIGHT Megaworld Corp (MEG PM) | Rating Change Malaysia Plantations | NEUTRAL Banking Sector Update Singapore Banks On solid footing DBS shone in the first round of quarterly results, with OCBC a close second and UOB in third place. A significant QoQ uptick in NIM was the major surprise. Greater China provided a strong earnings kicker to DBS and OCBC in 1Q14. Operating trends stayed positive. Maintain Overweight on banks. DBS remains our top sector pick, followed by UOB. Stay cautious on OCBC. Click here for report » Megaworld Corp (MEG PM) More land assets for future use; Up to Buy Share Price: PHP4.63 | Target Price: PHP5.29 (+14%) | MCap (USD): 3.3B | ADTV: USD6M Upgrade to BUY with revised TP of PHP5.29. Our scenario of a rise in MEG�s ownership of GERI to at least 72% was confirmed in the latest results briefing. Main effect is land bank expansion to a little over 3,000 hectares from 285. (FULL NOTE WILL BE SENT SOON) Planation Sector Update Malaysia Plantations Expect stronger YoY 1Q14 profits 1Q14 plantation earnings will generally be stronger compared to a year ago but weaker compared to the last quarter. 1Q14 upstream margins will be higher YoY, while refiners� margins will be weak. Maintain 12M NEUTRAL view. Key risk to our view is the return of a strong El Nino. Click here for report » COMPANY NOTES MY Strategy | NEUTRAL EEI Corporation (EEI PM) | Results Review Genting Singapore (GENS SP) | Rating Change Singapore REITs | UNDERWEIGHT Siam Cement (SCC TB) | TP Revision Strategy Update MY Strategy April fund flows Foreigners turned net buyers in April, but small, vs. more aggressive net buying in the other Emerging ASEAN markets. KLCI valuations sustained at rather high 16.0x 12M forward earnings and almost 2x PEG. We maintain our end-2014 KLCI target of 1,940 and sector weights; we also remain selective on stocks. Click here for report » EEI Corporation (EEI PM) FY13 income down, recovery in FY14 Share Price: PHP11.50 | Target Price: PHP14.00 (+22%) | MCap (USD): 268M | ADTV (USD): 0.3M Maintain BUY with 22% upside potential to our TP of PHP14, equivalent to 14.1x 2014F PER. FY13 earnings down 6.4% YoY to PHP915.7m as gross revenue falls 26%. Better prospects in FY14 as we anticipate more infrastructure and non-building contracts this year. (FULL NOTE WILL BE SENT SOON) Genting Singapore (GENS SP) Downside narrowing, raise to HOLD Share Price: SGD1.31 | Target Price: SGD1.24 (-5%) | MCap (USD): 12.8B | ADTV (USD): 19M 1Q14 results beat expectations largely due to VIP volume share gain which we do not think is sustainable. Industry VIP volume and mass market GGR continued to fall YoY but high base effect will wear off from 2Q14 onwards. Upgrade to HOLD with only 5% downside risk to share price. TP unchanged at SGD1.24, based on 10x FY14E EV/EBITDA. Click here for report » Sector Update Singapore REITs The REIT deals 1QCY14 results in line for all S-REITs under our coverage. The US Fed made another USD10b cut to its monthly bond-buying stimulus operations, as expected. Reiterate UNDERWEIGHT as sector fundamentals are far from exciting, apart from the �sell in May and go away� effect. Click here for report » Siam Cement (SCC TB) Will rise above the rubble Share Price: THB434.00 | Target Price: THB506.00 (+17%) | MCap (USD): 16.1B | ADTV (USD): 19M Disappointing 1Q14 as net profit dropped 5% YoY prompting our 3-6% earnings downgrade and lower TP of THB506-DCF based from THB550. Maintain BUY as we anticipate its diversified revenue and earnings base as well as broader geographic reach will help it outperform local peers SCCC (HOLD) and TPIPL (NR). Long term growth and regional market leadership is secured by ongoing expansion in various countries as well as acquisitions. Click here for report »