Regional Daily, Maybank KE (2014-06-11)

Daily 11 June 2014 TOP VIEWS Vingroup JSC (VIC VN) | Initiation Lippo Karawaci (LPKR IJ) | Rating Change Eco World Development (ECW MK) | Company Visit Sri Rejeki Isman (SRIL IJ) | Company Visit Vingroup JSC (VIC VN) | Initiation Vietnam�s premier developer Share Price: VND65,500 | Target Price: VND78,900 (+20%) | MCap (USD): 2.5B | ADTV (USD): 1.7M Initiate at BUY on under-researched and liquid stock with TP of VND78,900 (20% upside). Fifth-largest index member. We think the market often overlooks VIC�s potential due to concerns about its large and complex structure. Our review of its corporate governance practices and key risks is encouraging. VIC is one of the easier stocks for foreign investors to buy with high liquidity and sufficient room for foreign ownership. Click here for report » Lippo Karawaci (LPKR IJ) | Rating Change One step ahead; upgrade to BUY Share Price: IDR1,030 | Target Price: IDR1,200(+17%) | MCap (USD): 2.1B | ADTV (USD): 8M Upgrade to BUY with revised TP of IDR1,200 (from IDR900)implying 41% discount to RNAV of IDR2,040. Translates to 14.9x P/E and 1.8x P/B FY15F. Recently unveiled two mega projects in Lippo Village and Lippo Cikarang. Aims to accelerate the monetization of its land bank in the two townships. Plans to expand its hotel business by building and operating 50 new hotels by 2020. Click here for report » Eco World Development (ECW MK) | Company Visit It�s showtime Share Price: MYR5.04 | Target Price: MYR6.40 (+27%) | MCap (USD): 0.4B | ADTV (USD): 1.4M Likely to exceed its MYR2b internal sales target for FY10/14. Sales and profit delivery are key focus for investors over the medium-term. Maintain earnings forecasts, MYR6.40 TP (0.84x P/RNAV). ECW is our top BUY for the property sector. Click here for report » Sri Rejeki Isman (SRIL IJ) | Company Visit Conference call feedback Share Price: IDR198 | Target Price: IDR333(+68%) | MCap (USD): 313M | ADTV (USD): 1M We hosted a conference call with senior management for 17 investors. Maintain BUY with IDR333 TP (14x FY14E P/E). Uncertainties of the past few months have settled. Capacity expansion, customer traction are in line with expectations. Catalysts include higher-than-expected margins on more lucrative military business and major new customer wins. Click here for report » COMPANY NOTES Regional Plantations | NEUTRAL Nickel Asia (NIKL PM) | HOLD A. Soriano (ANS PM) | HOLD SIA Engineering (SIE SP) | BUY Regional Plantations Inventory on a rise Sector update Strong production and relatively muted exports led to higher inventory in May 2014. CPO price now trades at ~MYR2,400/t on weakened fundamentals, but within our expectations. Maintain 12M NEUTRAL view. Key upside risk to our view is the return of a strong El Ni�o. Click here for report » Nickel Asia (NIKL PM) An early preview of 1H14 Share Price: PHP28.30 | Target Price: PHP27.62(-2%) | MCap (USD): 1.6B | ADTV (USD): 2M Maintain HOLD with TP of PHP27.62 as AGM disclosures point to 1H14 earnings of PHP3.1b and strong likelihood of hitting our full-year forecast of PHP8.5b. Shift in NPI preference resulting in higher prices for lower-grade limonite while high-grade saprolite prices drop. Management hints at special cash/stock dividends in 2H14. (FULL REPORT WILL BE OUT SOON) A. Soriano (ANS PM) 1Q profits surge on trading gains Share Price: PHP7.00 | Target Price: PHP7.76(+11%) | MCap (USD): 401M | ADTV (USD): 0.1M 1Q14 profits surprise, jumping 94% YoY to PHP1.09b, accounting for 85% of our FY estimate. Trading gains, mostly on sale of AFS investments, reach PHP987m, up 120%. Maintain HOLD with increased TP to PHP7.76 factoring in higher end-1Q14 balance of investment portfolio. (FULL REPORT WILL BE OUT SOON) SIA Engineering (SIE SP) NDR feedback Share Price: SGD5.06 | Target Price: SGD5.75(+14%) | MCap (USD): 4.5B | ADTV (USD): 1M Operational efficiency to compensate for labour cost pressure in Singapore. Fairly low threat of new entrants despite growing Line maintenance market at Changi Airport. Remain positive after the non-deal roadshow and reiterate our view that SIAEC offers the best proxy to the structural air traffic growth in the region. Maintain BUY with TP of SGD5.75. Click here for report »