20141016-杰富瑞-PrimeTime_Asia_12页_313kb

Asia Research Summary

Core Content Overview

This document provides a comprehensive summary of stock analysis and market outlook for various Asian companies and sectors. The key themes include policy impacts, valuation opportunities, earnings performance, and strategic moves. The following sections highlight the main insights and recommendations.

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Key Companies and Their Analysis

Vipshop Holdings Limited (NYSE: VIPS)

• Rating: Buy
• Price Target: USD280.00
• Key Takeaway:
  • Vipshop has launched a global flash sale channel, accelerating category expansion.
  • Monthly PV and MAU show solid growth.
  • No meaningful changes in the competitive landscape are expected in the midterm.
  • Valuation is considered reasonable.

Sumitomo Rubber Industries (TSE: 5110 JP)

• Rating: Buy
• Price Target: ¥1,900
• Key Takeaway:
  • Focused on emerging markets and US sales.
  • Expected to increase sales in these regions.
  • Valuation is seen as attractive.

GMO Internet Inc. (TSE: 9449 JP)

• Rating: Buy
• Price Target: ¥1,260
• Key Takeaway:
  • Q3 results did not meet expectations.
  • Management remains confident in achieving full-year forecasts.
  • Valuation remains attractive despite lower estimates.

Japan Display Inc. (TSE: 6740 JP)

• Rating: Hold
• Price Target: ¥400
• Key Takeaway:
  • Post-IPO, JDI has recorded losses, while peers have continued to profit.
  • Risk-reward is unfavorable, leading to a cut in forecasts.
  • Maintain Hold with a revised price target.

Toyo Tire & Rubber (TSE: 5105 JP)

• Rating: Hold
• Price Target: ¥1,850
• Key Takeaway:
  • Strategy focused on the US SUV market.
  • Demand exceeds capacity, but expansion is expected by June 2015.
  • Limited presence in emerging markets.
  • Valuation seems reasonable.

Yokohama Rubber (TSE: 5101 JP)

• Rating: Hold
• Price Target: ¥1,000
• Key Takeaway:
  • Regional sales still depend on Japan.
  • US recovery has not been fully captured.
  • Competition has increased, leading to loss of market share.
  • Valuation is considered reasonable.

SoftBank Corp. (TSE: 9984 JP)

• Rating: Buy
• Price Target: ¥11,400
• Key Takeaway:
  • Invested in Geniee, a supplier-side platform for mobile ads.
  • Acquired DramaFever, an online content provider.
  • Expanding ecosystem with content, services, and platforms.
  • Growth business is expected to provide value.

SoftBank Corp. (OTC: SFTBY)

• Rating: Buy
• Price Target: $56.50
• Key Takeaway:
  • Same as TSE: 9984 JP.
  • Maintain Buy rating with a revised price target.

Saracen Mineral Holdings (ASX: SAR AU)

• Rating: Neutral
• Price Target: AUD0.45
• Key Takeaway:
  • Retain Neutral recommendation.
  • Recent price pullback offers a better buying opportunity.
  • Performance is tied to improvements in AISC.

Harvey Norman Holdings (ASX: HVN AU)

• Rating: Neutral
• Price Target: AUD3.32
• Key Takeaway:
  • Upgraded from Negative to Neutral due to recent price decline.
  • Stock now trades marginally above valuation.
  • Better buying opportunities may occur during weaker points in the housing cycle.

Energy Developments Limited (ASX: ENE AU)

• Rating: Positive
• Price Target: AUD6.11
• Key Takeaway:
  • Debt refinancing has extended maturity profile and reduced finance costs.
  • Management maintains a fully franked DPS.
  • Dividend yield is a key factor in the positive outlook.

Bumi Serpong Damai (IDX: BSDE IJ)

• Rating: Buy
• Price Target: IDR2,000.00
• Key Takeaway:
  • Strong land bank and product variety.
  • Expected to beat marketing sales guidance for FY14.
  • Maintain Buy with a revised price target.

GLP J-REIT (TSE: 3281 JP)

• Rating: Buy
• Price Target: ¥150,000
• Key Takeaway:
  • Results aligned with expectations.
  • Property appraisal values increased.
  • Well-positioned for e-commerce growth.
  • Maintain Buy with a revised price target.

Kyongnam Bank (KSE: 192520 KS)

• Rating: Buy
• Price Target: KRW16,500
• Key Takeaway:
  • Shares declined due to relisting and limited earnings generation.
  • Current price is seen as an attractive entry point.
  • Maintain Buy with a revised price target.

Kwangju Bank (KSE: 192530 KS)

• Rating: Buy
• Price Target: KRW14,500
• Key Takeaway:
  • Shares declined due to relisting and limited earnings generation.
  • Despite discount factors, current price is attractive.
  • Maintain Buy with a revised price target.

Kulim (M) Berhad (KUL: KUL MK)

• Rating: Buy
• Price Target: MYR4.00
• Key Takeaway:
  • Disposal of 49% stake in NBPOL is a positive catalyst.
  • Muted share price reaction suggests a good buying opportunity.
  • Maintain Buy with a revised price target.

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Key Sectors and Themes

Gaming

• Key Takeaway:
  • Gaming stocks fell sharply due to policy headwinds and liquidity constraints in mainland China.
  • Short-term outlook is lacklustre, but the worst may be behind.
  • New properties will start to launch in 12 months but are not yet priced in.
  • Recommend buying deep valuation names like SJM and Sands China.

Industrials

• Key Takeaway:
  • Machine tool orders have shown decent growth YTD.
  • Strong performance in Asia's precision/electronics and North America.
  • Concerns remain in Europe due to macroeconomic indicators.
  • Favorable end market demand conditions expected to continue.

Pharmaceuticals

• Key Takeaway:
  • 1HFY15 was a muted quarter for Indian pharma due to GDUFA benefits.
  • Expected shift in FDA focus towards approvals in the future.
  • Benefits would start to accrue from 2HFY16.
  • Maintain positive outlook on the sector.

Korea (Mirae Asset)

• Key Takeaway:
  • Signs of manufacturing recovery in Korea.
  • IT sector's inventory cycle index showed a rebound.
  • BOK cut key interest rate to 2% and lowered GDP and inflation forecasts.
  • Expect further rate cuts in 1Q15.
  • Banking sector remains overweight.

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Analyst Marketing Events

• Events:
  • Jefferies hosted several marketing events across various locations in October 2014.
  • These included conferences and company meetings in cities such as Hong Kong, London, New York, Boston, and San Francisco.
  • Analysts participated in multiple events, including those related to Jefferies' Asia Corporate Access Summit and other sector-specific meetings.

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Important Disclosures

• Ratings:
  • Buy: Expected total return of 15% or more within 12 months.
  • Hold: Expected total return of ±15% within 12 months.
  • Underperform: Expected total return of -10% or more within 12 months.
• Conflicts of Interest:
  • Atul Goyal holds a long equity position in SoftBank Corp.
  • Various regulations may affect the frequency of research updates.

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Summary

The document outlines key stock recommendations and market analysis for several Asian companies, focusing on valuation, earnings performance, and strategic developments. It highlights the potential for recovery in sectors such as gaming, industrials, and pharmaceuticals, with specific emphasis on companies like Vipshop, Sumitomo Rubber, and SoftBank. Analysts also provided updates on events and marketing activities, reinforcing their engagement with the market. The overall sentiment suggests a cautiously optimistic outlook with opportunities for long-term investment in undervalued stocks.