20140826-杰富瑞-PrimeTime_Asia_17页_443kb

Asia Research Summary

Core Content Overview

This document is a summary of research reports from various analysts covering different sectors in Asia, including Property, Basic Materials, Autos & Auto Parts, Utilities, and others. The reports highlight key financial performance, market trends, and investment recommendations for a range of companies across the region.

Main Points and Key Information

Hong Kong Property

• MTR (HKSE: 66 HK):

  • 1H14 results in-line with expectations.
  • Recurrent core profit growth of 10% YoY.
  • Improved transparency in reporting.
  • Maintain HOLD rating with a price target of HK$31.70.

• Cheung Kong, Henderson Land & Swire Prop.:

  • Expected to benefit from strong weekend sales.
  • Analysts recommend BUY due to positive near-term catalysts.

• Gome Electrical Appliances (HKSE: 493 HK):

  • 1H14 results in-line with forecasts.
  • Multi-channel strategy and cost efficiency are key strengths.
  • Maintain BUY rating with a price target of HK$1.90.

• Hong Kong & China Gas (HKSE: 3 HK):

  • Core operating profit after tax increased by 12% YoY.
  • 1H14 NPAT of HK$3.73bn, +2.9% YoY.
  • Analyst recommends HOLD with a price target of HK$19.00 to HK$17.90.

• Towngas China (HKSE: 1083 HK):

  • 1H14 core operating profit after tax increased by 18% YoY.
  • Maintain BUY rating with a price target of HK$11.20 to HK$10.20.

• Greentown China Holdings (HKSE: 3900 HK):

  • Interim net profit declined 59% YoY due to high land cost and JV losses.
  • Sunac takeover is expected to improve profitability.
  • Maintain HOLD rating with a price target of HK$8.80.

• Goodbaby International Holdings (HKSE: 1086 HK):

  • Healthy organic growth and integration with Cybex and Evenflo progressing.
  • Maintain HOLD rating with a price target of HK$3.45.

Basic Materials

• China Petroleum & Chemical - H (HKSE: 386 HK):

  • Downgraded to UNDERPERFORM due to confusion in the market and unclear fundamentals.
  • Price target of HK$6.80 to HK$6.90.

• China Shanshui Cement Group (HKSE: 691 HK):

  • Management optimistic about 2H14 due to railway investments.
  • Expect a 4% YoY production increase.
  • Maintain HOLD rating with a price target of HK$3.00.

• Digital China (HKSE: 861 HK):

  • Weaker sales but better profits from Supply Chain and Services.
  • Maintain BUY rating with a price target of HK$9.00.

Autos & Auto Parts

• July Registration Data:

  • Inventory levels declined for the sector.
  • GWM has very low inventory, good for peak season.
  • Dongfeng and GAC will continue to destock.

• Tata Consultancy Services (BSE: TCS IN):

  • Strong revenue performance and business visibility.
  • Upgraded to BUY with a price target of INR2,870.

Other Sectors

• XL Axiata (IDX: EXCL IJ):

  • Healthy operational results despite net loss in 1H14.
  • Strong data revenue growth of +27.9% QoQ and +54.6% YoY.
  • Upgraded to BUY with a price target of IDR6,450.

• Industria REIT (ASX: IDR AU):

  • Portfolio diversification and solid metrics support the investment case.
  • Maintain Positive rating with a price target of AUD2.09.

• McMillan Shakespeare (ASX: MMS AU):

  • Growth resumed in the novated leasing market.
  • Positive on margins and EPS growth.
  • Maintain Positive rating with a price target of AUD13.92.

• Spotless Group (ASX: SPO AU):

  • Contract retention and new wins expected to drive revenue growth.
  • Move into home care sector is a strategic extension.
  • Maintain Positive rating with a price target of AUD2.10.

• Western Areas (ASX: WSA AU):

  • Strong nickel price boosted results.
  • Converted to net cash position for the first time in ten years.
  • Rating is Negative with a price target of AUD2.72.

• Samkwang Glass (KSE: 005090 KS):

  • Expected to see significant earnings growth from 2014 onwards.
  • Initiate BUY with a price target of KRW120,000.

• SK hynix Inc. (KSE: 000660 KS):

  • Shift in demand from tablets to 2-in-1 PCs is expected to sustain growth.
  • Maintain BUY rating with a price target of KRW70,000.

• AMMB Holdings (KUL: AMM MK):

  • Management confidence remains strong despite weak Q1 results.
  • Implied underlying profit is 37% higher than Q1FY15.
  • Maintain BUY rating with a price target of MYR8.30.

• Felda Global Ventures (KUL: FGV MK):

  • 1H14 results disappointing.
  • 2H14 may be challenging due to CPO price environment.
  • Maintain HOLD rating with a price target of MYR4.00.

• United Plantations (KUL: UPL MK):

  • Dry weather impacted FFB production in 2Q14.
  • Refinery margins normalized but still small.
  • Maintain HOLD rating with a price target of MYR26.

General Market Outlook

• Strong weekend sales are expected to be a near-term catalyst for developers.
• Fed's less dovish stance may affect the market in the coming week.
• Bridgestone is being initiated with a BUY rating due to demand recovery and attractive valuation.
• China's oil companies face confusion, leading to a Downgrade to Underperform.
• Emerging market dynamics are expected to be affected by the US dollar rebound.
• Global liquidity is still seen as a temporary event rather than a long-term uptrend.

Investment Recommendations Summary

Key Themes

• Recovery and growth in key sectors like cement, utilities, and property are being monitored closely.
• Strategic shifts such as moving towards branded products and diversification are seen as positive developments.
• Valuation is a key factor in many recommendations, with some companies trading at undemanding multiples.
• Regulatory and market conditions play a critical role in influencing performance and ratings.