Affin Hwang Capital Daily Insight (LV) - 31 October 2014 - UNISEM / PREIT / ECONOMY - FISCAL POLICY / ECONOMY - ASEAN OUTLOOK

Top Calls

Results Note � Unisem (REDUCE, downgrade) - Strong quarter�but for how long? - Benefiting from restructuring, Unisem posted its third consecutive quarter of profit in 3Q14. - Positive earnings momentum could continue. However, with increased macro uncertainty and a prolonged global semiconductor upturn, there is less earnings visibility in FY15, particularly given Unisem�s broad customer base, with 52% of revenue from the more volatile PC, industrial and consumer electronics spaces. - 4Q14 revenue guidance is for flat to a 5% decline qoq. - We downgrade Unisem to a Reduce from ADD but with a slightly higher TP of RM1.54

Other Calls

Results Note � Pavilion REIT (ADD, maintain) - 3Q14 propped up by a one-off reversal

Economy � Fiscal Policy - Oil prices, GST and budget deficit projections

Economy � ASEAN Outlook � Weekly Wrap (24 � 30 Oct 2014) - Thailand�s MOF downgraded GDP forecast further

Morning News & Market Summary