Affin Hwang Capital Daily Insight (LV) - 4 August 2015 - PCHEM / AXREIT / ECONOMY - PMI

Top Calls

Company Update � Petronas Chemicals (SELL, maintain) - Likely decent 2Q results, but priced in We forecast Petronas Chemicals (Pchem) to achieve a 15% sequential earnings growth in 2Q15, lifted by higher product selling prices, but dragged down by lower plant utilisation. At 17x 2016E PER (26% above historical average, 33% above regional peers), we believe that the positives are priced in. Maintain SELL with an unchanged TP of RM5.75 based on 14x 2016E PER.

Other Calls

Results Note � Axis REIT (BUY, maintain) - Gathering pace qoq, 2H15 to be stronger

Economy � Manufacturing PMI - Msia�s PMI still below the 50 mark for 4th straight month

Morning News & Market Summary

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