20140827-杰富瑞-PrimeTime_Asia_Today_At_A_Glance_20页_453kb

Asia Research Summary

Core Content

This document provides a detailed analysis of various Asian companies, focusing on their financial performance, earnings forecasts, and investment ratings. The report includes insights on the performance of the transportation and logistics sector, as well as summaries of individual company results and outlooks.

Key Takeaways

• Dry bulk shipping rates increased last week, with Capsize leading the recovery.
• Tanker market stabilized at a healthy level, with VLCC day rates at US $30,776 and product tanker day rates at US $15,098.
• Container spot rates weakened.

Main Companies and Analysis

China Oilfield Services - H (HKSE: 2883 HK)

• Rating: BUY
• Price Target: HK$23.00 (15% upside)
• Key Points:
  • Upgraded from HOLD to BUY.
  • 1H EPS beat expectations by 30%.
  • Concerns about one-off gains in 1H.
  • Revised 2014/15 earnings and TP upwards.

SPT Energy Group Inc. (HKSE: 1251 HK)

• Rating: BUY
• Price Target: HK$7.70
• Key Points:
  • 1H results were strong, driven by domestic revenue growth.
  • Revised estimates and price target downward due to higher costs.
  • Maintain Buy due to growth prospects.

Renren Inc. (NYSE: RENN)

• Rating: UNDERPERFORM
• Price Target: $2.65
• Key Points:
  • 2Q14 earnings beat due to investment gains.
  • Mobile monetization still lagging.
  • Revised PT downward due to continued operating cash outlay.

Digital China Holdings Ltd. (HKSE: 861 HK)

• Rating: BUY
• Price Target: HK$9.00
• Key Points:
  • Trading at distressed valuations.
  • Cyclical improvement expected in 2H14.
  • Maintain Buy with upside potential.

Evergrande Real Estate Group (HKSE: 3333 HK)

• Rating: BUY
• Price Target: HK$3.70
• Key Points:
  • Core earnings declined YoY due to high financing costs.
  • Robust presales expected.
  • Valuation is considered undemanding.
  • Maintain Buy despite the earnings miss.

Henderson Land (HKSE: 12 HK)

• Rating: BUY
• Price Target: HK$62.00 (21% upside)
• Key Points:
  • Strong 1H14 result, beating expectations.
  • A policy beneficiary with a solid foundation.
  • Expect value unlocking from its land bank.
  • Maintain Buy.

Shimao Property Holdings Ltd. (HKSE: 813 HK)

• Rating: HOLD
• Price Target: HK$10.60
• Key Points:
  • Interim results were in line with estimates.
  • Dividend omitted and financial position weak.
  • Expect presales to pick up in 2H.
  • Maintain Hold.

Agile Property Holdings Ltd. (HKSE: 3383 HK)

• Rating: UNDERPERFORM
• Price Target: HK$4.80
• Key Points:
  • Interim results beat estimates by 10%.
  • Cash collection was the lowest among peers.
  • Liquidity risk remains a concern.
  • Maintain Underperform.

Lonking Holdings Ltd. (HKSE: 3339 HK)

• Rating: UNDERPERFORM
• Price Target: HK$1.27
• Key Points:
  • Results were 10% ahead of street low estimates.
  • Lack of disclosure on off-balance sheet items.
  • Concerns about profitability in an overcapacity industry.
  • Maintain Underperform.

China Modern Dairy Holdings Ltd. (HKSE: 1117 HK)

• Rating: BUY
• Price Target: HK$4.50
• Key Points:
  • Strong 1H results due to high ASP and downstream growth.
  • Margins expanded and FCF turned positive.
  • Revised forecasts and PT upwards.
  • Reiterate Buy.

BBMG Corp (HKSE: 2009 HK)

• Rating: BUY
• Price Target: HK$7.00
• Key Points:
  • Slow 1H14 growth due to slower cement recovery.
  • Management remains positive on A-H through train.
  • Maintain Buy.

Trina Solar Ltd. (NYSE: TSL)

• Rating: BUY
• Price Target: $20.10
• Key Points:
  • 2Q results missed due to margin compression.
  • Management guided for higher shipments in 3Q.
  • Reiterate Buy due to good revenue growth and valuations.

Air China-H (HKSE: 753 HK)

• Rating: BUY
• Price Target: HK$5.70
• Key Points:
  • Operating profit rebounded by 64% YoY.
  • Net income declined by 55% YoY due to lower prices.
  • Positive outlook for domestic market and tailwinds from fuel and FX.
  • Maintain Buy.

Nippon Prologis REIT, Inc. (TSE: 3283 JP)

• Rating: BUY
• Price Target: ¥280,000
• Key Points:
  • Acquired 5 properties for $45.5bn at a 5.2% cap rate.
  • Revised DPU forecast upward by 4.4%.
  • Maintain Buy as top pick in JREIT sector.

HCL Technologies (BSE BO: HCLT IN)

• Rating: BUY
• Price Target: INR1,860.00
• Key Points:
  • Strong performance in conventional ITS.
  • IMS growth concerns are overdone.
  • Positive view on growth prospects and valuations.
  • Maintain Buy.

Key Trends and Outlook

• The transportation sector is showing signs of recovery, particularly in dry bulk shipping.
• Container shipping is facing weakening spot rates, while tanker markets are more stable.
• China Oilfield Services - H and SPT Energy Group Inc. are highlighted as strong performers with upside potential.
• Renren Inc. and Lonking Holdings Ltd. face challenges in monetization and liquidity, respectively.
• Nippon Prologis REIT, Inc. and HCL Technologies are noted for their strategic moves and positive growth outlook.
• Evergrande Real Estate Group and Henderson Land show resilience despite earnings misses.
• Shimao Property Holdings Ltd. and Agile Property Holdings Ltd. are more cautious, with the latter being held due to liquidity concerns.
• Digital China Holdings Ltd. and New China Life Insurance are also flagged for their potential and positive outlooks.

Summary

This report highlights the mixed performance of Asian companies across different sectors, with a focus on financial results, earnings forecasts, and investment ratings. While some companies like China Oilfield Services - H, SPT Energy Group Inc., and Nippon Prologis REIT, Inc. show strong performance and positive outlooks, others such as Renren Inc., Lonking Holdings Ltd., and Agile Property Holdings Ltd. are underperforming due to various challenges. The overall sentiment is cautiously optimistic, with several companies maintaining Buy ratings despite short-term issues.