- Hero
Motocorp (HMCL IN) | Rating Change
- Tech
Mahindra (TECHM IN) | Results Review
- Hartalega
(HART MK) | Results Review
- Malaysia
Marine & Heavy Engineering (MMHE MK) | Results Review
- Philippine
Long Distance Telephone (TEL PM) | Results Review
- OCBC
Bank (OCBC SP) | Results Review
- OCBC
Bank (OCBC SP) | Company Update
- StarHub
(STH SP) | Rating Change
- Sri
Trang Agro (STA TB) | Results Preview
- Vietnam
Monthly View
|
Hero Motocorp (HMCL IN)
|
Double-digit growth in local
demand; U/G to BUY
|
Share Price: INR2,584 | Target
Price: INR2,920(+13%) | MCap (USD): 8.5B | ADTV (USD): 20M
|
- Upgrade
to BUY from HOLD. New TP of INR2920 is 39% higher than
previously and is based on PER of 20x FY16F. EPS increase of
6%/7% for FY15/16 underpins this upgrade.
- HMCL
missed consensus and our EPS estimate by 10% and 5% for 1Q.
This is largely because the company confirmed discontinuation
of royalty payments to Honda from 1 July�14 resulting in gross
savings of INR8b/year (40% of FY14 net).
- We
believe our EPS growth forecast for FY15/6 is conservative and
we expect EPS upgrades to follow. Increased capacity and
demand for scooters, higher cost savings, and strong growth in
high-margin sports motorcycles are the catalysts.
|
Tech Mahindra (TECHM IN)
|
Growth intact; margin pick-up
from 2Q
|
Share Price: INR2,170 | Target
Price: INR2,500(+15%) | MCap (USD): 8.3B | ADTV (USD): 28M
|
- 1QFY15
revenue (+3.6% QoQ in USD) beat our forecast but EPS of
INR26.90 (+2.3% QoQ, -9% YoY) missed, due to lower EBITDA
margins.
- EBITDA
margins to pickup from 2Q. Cut FY15/16E EPS by 2-6% to factor
in 1Q results but still forecast earnings CAGR of 15.6% for
FY14-16.
- Maintain
TP of INR2,500, based on 15x FY16E P/E. TECHM remains one of
our top-picks for IT sector. Catalysts expected from uptick in
EBITDA margin and EPS from 2Q onwards and M&A.
|
Hartalega (HART MK)
|
High take-up for new capacity
|
Share Price: MYR6.71 | Target
Price: MYR7.30(+9%) | MCap (USD): 1.6B | ADTV (USD): 0.8M
|
- 1QFY3/15
earnings (+16% QoQ, -9% YoY) within expectations.
- We
are positive on its expansion plan, especially since existing
customers have lent support to demand.
- Maintain
BUY and TP of MYR7.30 (19x mid-2016 PER).
|
Malaysia Marine & Heavy Engineering
(MMHE MK)
|
In line; changes in methods
|
Share Price: MYR3.50 | Target
Price: MYR4.60 (+31%) | MCap (USD): 1.8B | ADTV (USD): 0.8M
|
- 1H14
results within our expectation, below consensus.
- New
profit recognition, from �milestone
billing� to �square method� cuts our FY15/16 earnings
forecasts by 49%/43%.
- We
change our valuation methodology to backlog-based; TP raised
to MYR4.60 (+9%), on 2.9x EV/ backlog. Maintain BUY.
|
Philippine Long Distance
Telephone (TEL PM)
|
Steady single-digit growth
|
Share Price: PHP3,150 | Target
Price: PHP3,080 (-2%) | MCap (USD): 15.8B | ADTV (USD): 12M
|
- 1H14
core net income was PHP19.4b, in line with forecast. Maintain
HOLD and TP of PHP3,080.
- Core
profit up 2% YoY as expenses of 6% outpaced revenue rise of 3%
with higher cash operating costs and subsidies.
- Investment
in internet space in advanced stage and is likely to be a
strategic partnership, may close within a few weeks.
|
OCBC Bank (OCBC SP)
|
Strong 1H; WHB overhang
|
Share Price: SGD9.86 | Target
Price: SGD9.63(-2%) | MCap (USD): 27.7B | ADTV (USD): 27M
|
- 2Q14
beat expectations on strong net trading income and profit from
life assurance.
- NIM
held up well, solid credit quality, ample SGD liquidity (81.6%
SGD LDR), though loan growth slowed.
- Purchase
of WHB remains a concern. Maintain HOLD and TP of SGD9.63,
based on 1.24x average FY14E-15E P/BV. Top sector pick is DBS.
|
OCBC Bank (OCBC SP)
|
No fresh angle; Post-results
briefing
|
Share Price: SGD9.86 | Target
Price: SGD9.63(-2%) | MCap (USD): 27.7B | ADTV (USD): 27M
|
- Management
sanguine on housing credit quality and China exposure.
- Less
positively, it expects weaker NIM in 2H due to deposit
competition.
- Maintain
HOLD and TP of SGD9.63, based on 1.24x average FY14E-15E P/BV.
Top sector pick is DBS.
|
StarHub (STH SP)
|
Mobile star dimming
|
Share Price: SGD4.23 | Target
Price: SGD4.44(+5%) | MCap (USD): 5.8B | ADTV (USD): 7M
|
- 2Q14
results below, revenue guidance cut. Downgrade our least
preferred telco to HOLD from BUY. TP cut to SGD4.44 (DCF, WACC
7.8%).
- Sharp
slowdown in mobile revenue growth as fall in voice/SMS offset
data growth.
- Broadband�s revenue free fall unlikely
to end soon.
|
Sri Trang Agro (STA TB)
|
2Q14 still weak on volume &
price
|
Share Price: THB14.30 | Target
Price: THB11.50 (-20%) | MCap (USD): 569M | ADTV (USD): 1M
|
- Maintain
SELL and THB11.5 TP at low end of Street, based on LTM
PBV-0.5x SD. Stock�s
been bucking downtrend in rubber prices but we expect trend
reversion as poor prices continue
- Losses
at operating level are expected to recur in 2Q14 (THB12m) but
the bottom line will reach THB355m supported by extra ordinary
gains
- Rubber
prices continue to fall and volumes were slow on account of
seasonality and high inventory
|
Vietnam Monthly View
|
Third time testing 600 level in
2014
|
Monthly Research
|
- VN-Index
moved up to 596.07 pts, +3.1% in July�14, better than our
expectations set out at the beginning of the month. However
1.2% of this gain was on the last trading day.
- VN-Index
spent more days in red territory (12) than in the green area
(10), suggesting challenges remain testing the 600 level.
- Foreign
investors continued to be net buyers of USD16m or USD350m YTD,
compared with USD320m for the whole of last year.
|
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