Regional Daily, Maybank KE (2014-10-17)

Daily 17 October 2014 TOP VIEWS Sands China (1928 HK) | Results review MMG (1208 HK) | Company update HCL Technologies (HCLT IN) | Results preview Eco World Development (ECW MK) | Company update Sands China (1928 HK) Holding its ground Share Price: HKD42.25 | Target Price: HKD54.80 (+30%) | MCap (USD): 43.9B | ADTV (USD): 117M 3Q14 results were within expectations. Expect a sequentially better 4Q14. Maintain BUY with HKD54.80 TP. Click here for report » MMG (1208 HK) Reiterate Buy on Bambas update Share Price: HKD2.69 | Target Price: HKD3.40 (+26%) | MCap (USD): 1.8B | ADTV (USD): 2M Project update reveals a potential 25% capex increase (MMG share USD1b) and delay in full production vs our estimates. However, initial ore exploration shows very positive results. The changes do not alter our view the project will significantly increase MMG�s cash flows when in full production during 2017, driving the valuation much higher. We await the 4Q14 update and maintain our mid-2014 DCF-based TP of HKD3.40. We see the major catalysts being higher cash flows from new projects and rising copper prices. Click here for report » HCL Technologies (HCLT IN) Outperformance to continue; BUY Share Price: INR1,724 | Target Price: INR2,056 (+19%) | MCap (USD): 19.7B | ADTV (USD): 24M Maintain BUY with a higher TP of INR2,056 (from INR1,757) based on 17x PER as we roll over to FY16F (FYE June). We forecast 1QFY15 EPS of INR25.2, -4% QoQ and +24% YoY. We forecast revenue (in USD) growth of 3.8% QoQ. We remain bullish on HCLT's ability to consistently outperform the sector and maintain 16% revenue CAGR (in USD) over FY14-16F. Click here for report » Eco World Development (ECW MK) Going overseas via SPAC Share Price: MYR3.84 | Target Price: MYR6.59 (+72%) | MCap (USD): 297M | ADTV (USD): 0.5M Positive on ECW�s latest decision to venture overseas via the special purpose acquisition company (SPAC) that will be led by the former SP Setia senior management team. The investment allows ECW to gain exposure to international property markets without overstretching its balance sheet and diverting its focus away from Malaysian operations. Maintain earnings forecasts but place MYR6.59 TP under review pending further details. Reiterate BUY. Click here for report » COMPANY NOTES China Banks | OVERWEIGHT Eros International(EROS IN) | Results preview Top Glove (TOPG MK) | Company update Westports Holdings (WPRTS MK) | Company update British American Tobacco (ROTH MK) | Results review Jollibee Foods (JFC PM) | Company update M1 (M1 SP) | Results Review Dynasty Ceramic (DCC TB) | Results preview Siam Commercial Bank (SCB TB) | Results review China Banks 3Q14: Towards healthier conditions Sector update Moderate M2 growth & smaller deposit deviation. Keep O/W. Expect RMB loan growth of CNY9.6t for 2014. Banks will have more balanced mix in 4Q14. Trust loans may continue to follow downtrend in 4Q14. Click here for report » Eros International(EROS IN) Sustaining a strong movie slate Share Price: INR246 | Target Price: INR330 (+34%) | MCap (USD): 370M | ADTV (USD): 1M Maintain BUY with a new street-high TP of INR330 (from INR277) based on 10x PER as we roll over to FY16F. We forecast 2QFY15 EPS of INR4, flattish YoY, mainly due to fewer movie releases. Movie slate for 2H remains strong, which along with high-margin movie catalogue sales, would propel EROS's earnings. We remain confident of EROS's ability to deliver sustainable growth. We introduce FY17 financials and forecast EPS CAGR of 22% and ROE 19% over FY14-16F. (Full report will be out soon) Top Glove (TOPG MK) Still lack near-term catalysts Share Price: MYR4.74 | Target Price: MYR4.70 (-1%) | MCap (USD): 898M | ADTV (USD): 0.7M Various initiatives (R&D) are in place to stay competitive. However, any concrete results will not be immediate. Maintain forecasts, HOLD and TP of MYR4.70 (15x CY15 PER). Click here for report » Westports Holdings (WPRTS MK) Confidence from CMA CGM Share Price: MYR2.93 | Target Price: MYR3.30 (+16%) | MCap (USD): 3.0B | ADTV (USD): 2M Expect net positive impact from the proposed O3 and 2M. A defensive growth stock with decent dividend yield of 3.8%. Maintain forecast, BUY and DCF-derived TP of MYR3.30. Click here for report » British American Tobacco (ROTH MK) 3Q14 results marginally above Share Price: MYR66.72 | Target Price: MYR62.00 (-7%) | MCap (USD): 5.8B | ADTV (USD): 3M BAT�s 3Q14 results exceeded expectations. Sustainable and enhanced crackdown efforts should moderately help offset legal market volume contraction. Maintain SELL with an unchanged DCF-based TP of MYR62 on pricey valuations. Click here for report » Jollibee Foods (JFC PM) Pricing power demonstrated Share Price: PHP185.10 | Target Price: PHP210.00 (+13%) | MCap (USD): 4.4B | ADTV (USD): 2M Reiterate BUY especially on dips. JFC raised average selling price for Jollibee, Chowking and Greenwich by 1.3-4% starting October. Same-store-sales growth likely sustained at 8-9% in 3Q14. Click here for report » M1 (M1 SP) Biggest gainer of data monetisation Share Price: SGD3.47 | Target Price: SGD4.24 (+22%) | MCap (USD): 2.5B | ADTV (USD): 2M 3Q14 in line. Maintain BUY & SGD4.24 TP, DCF-based. Still our top telco pick. Very clear M1 is benefiting the most from data-plan monetisation. Rising smartphone data usage sustaining revenue growth in a highly-penetrated market. Click here for report » Dynasty Ceramic (DCC TB) Expect soft 3Q14; Cut earnings & TP Share Price: THB58.00 | Target Price: THB65.00 (+12%) | MCap (USD): 728M | ADTV (USD): 0.3M Maintain BUY even as DCC�s sales continue to trough in this dismal year. Long-term thesis remains intact: small-scale renovation of dwellings in the provinces. Expect 3Q14 net profit to drop 3% YoY, this would bring 9M14 cumulative to 65% of our forecast. Even assuming 4Q14 to be recovery quarter, co. is highly likely to miss our FY estimate. Lower 2014-2016 estimates by 10-11% and the revised earnings stream give us a new TP of THB45-DDM based at 9.9% CoE, 2% G. Click here for report » Siam Commercial Bank (SCB TB) 3Q missed by a hair Share Price: THB172.50 | Target Price: THB220.00 (+27%) | MCap (USD): 18.5B | ADTV (USD): 25M Maintain BUY and TP of THB220, implying 12.5x 2015 PER, 2.3x P/BV and 20% ROE. 3Q14F earnings grew 4% YoY but fell 10% QoQ to THB13.2b, below our and Street estimates by 4% and 2% on weak trading and FX-related fees. 9M14 earnings grew 7% YoY to THB41b and accounted for 76% of our full-year forecast. Maintain 8% earnings growth in 2014. Click here for report »