20160426-大和证券-Asia_Pacific_Daily_46页_5mb

Asia Pacific Daily Summary

Core Content

The Asia Pacific Daily provides an overview of recent developments in the region's equity and REIT markets, including analyst ratings, company performance updates, and macroeconomic insights. The document also highlights upcoming company roadshows and Daiwa's investment recommendations.

Major Changes

• Mapletree Industrial Trust (MINT SP):
  • Analyst: David Lum
  • Rating: Outperform → Hold
  • Target Price: Up 3.1% to SGD1.680
  • Key Points:
    • 4QFY16 results were in line with forecasts, with a 2% higher DPU.
    • Operating performance was mixed, with positive trends overall.
    • Occupancy rate slightly declined to 94.6%.
    • Rental reversion was encouraging for business park buildings (+8.3%) and stable for flatted factories (+2.8%), but negative for hi-tech buildings (-4.9%).
    • Monthly passing rent improved to SGD1.90/sq ft.
    • Book value per unit was SGD1.37 as of 31 March 2016, with a gearing ratio of 28.2%.
    • Downgraded rating due to the belief that fundamentals are well priced, with a PBR of 1.20x (highest among S-REITs) and a narrow discount to DDM valuation.
    • Recommends a positive risk if new DPU-accretive investments occur, and a negative risk if rental reversions worsen.

Other Research

• Global Technology Sector:

  • Analyst: Rick Hsu
  • Rating: Positive
  • Key Points:
    • Kumamoto earthquake had limited impact on Asian food-chain.
    • Concerns about potential PVOH film shortages in large-panel display supply chain.

• Tsingtao Brewery (168 HK):

  • Analyst: Anson Chan
  • Rating: Underperform
  • Key Points:
    • 1Q16 sales and principal brand sales declined by 5% and 7% YoY, respectively.
    • Net profit growth was weaker than its closest peer, China Resources Beer (291 HK), which saw a 459% YoY increase.
    • Revised revenue and EPS estimates down by 1–2% for 2016–2017, with a 12-month target price of HKD26.80 based on a 19x 2016E PER.

• TXC Corp (3042 TT):

  • Analyst: Kylie Huang
  • Rating: Outperform
  • Key Points:
    • On track for solid earnings growth in 2016.

• Raffles Medical Group (RFMD SP):

  • Analyst: Jame Osman
  • Rating: Outperform
  • Key Points:
    • Promising underlying trends.

• DiGi.Com (DIGI MK):

  • Analyst: Lim Tee Yang
  • Rating: Hold
  • Key Points:
    • A muted tone.

• Bursa (BURSA MK):

  • Analyst: Tan Ei Leen
  • Rating: Hold
  • Key Points:
    • Driven by derivatives trading and fee income.

• Siam Global House Pcl (GLOBAL TB):

  • Analyst: Siriporn Arunothai
  • Rating: Buy
  • Key Points:
    • Turning around.

• Tambang Bukit Asam (PTBA IJ):

  • Analyst: Arandi Arientara
  • Rating: Buy
  • Key Points:
    • Electrifying.

Japan Equity Research

• Nippon Shinyaku (4516):
  • Analyst: Kazuaki Hashiguchi
  • Rating: 3 → Underperform
  • Key Points:
    • Declining sales of long-listed drugs not fully priced in.

Macro Research

• BOJ Monetary Policy Meeting:

  • Analyst: Eiji Kinouchi
  • Key Points:
    • Expected to adopt more effective easing measures.

• US Data Review – New Home Sales:

  • Analyst: Michael Moran
  • Key Points:
    • Covered in the report.

• Euro Wrap-up Overview:

  • Analyst: Chris Scicluna
  • Key Points:
    • Covered in the report.

Memos – Quick Updates

• Macau Gaming:

  • Analyst: Jamie Soo, CA
  • Key Points:
    • MTD YoY decline of 11%, full month YoY decline estimate at 15%.

• Great Wall Motor (2333 HK):

  • Analyst: Kelvin Lau
  • Key Points:
    • Weak 1Q16 results, but valuation looks fairly priced.

• Lifestyle International (1212 HK):

  • Analyst: Anson Chan
  • Key Points:
    • To spin-off Lifestyle China.

• Orient Overseas International (316 HK):

  • Analyst: Kelvin Lau
  • Key Points:
    • 1Q16 operating data showed better-than-expected trade flows.

• SITC International (1308 HK):

  • Analyst: Kelvin Lau
  • Key Points:
    • 1Q16 solid volume growth; freight rate drop should be offset by fuel cost savings.

Company Roadshows

• 25-27 Apr: TravelSky (696 HK) – NDR in US
• 25-29 Apr: Boer Power (1685 HK) – NDR in EU
• 28 Apr: CITIC Telecom (1883 HK) – NDR in Tokyo
• 29 Apr: TravelSky (696 HK) – NDR in HK
• 4 May: Digital China (861 HK) – Group Luncheon in HK and SG
• 5-6 May: IRPC Public Company (IRPC TB) – NDR in HK
• 9 May: Tongda Group (698 HK) – Group Luncheon in HK
• 9-13 May: Summit Ascent (102 HK) – NDR in EU; Hyundai Motor (5380 KS) – NDR in US
• 10-11 May: Xstep (1368 HK) – NDR in Tokyo
• 16 May: AusNet Services (AST AU) – NDR in Tokyo
• 16-17 May: Stella International (1836 HK) – NDR in Tokyo
• 18 May: Fufeng Group (546 HK) – NDR in Tokyo
• 18-20 May: CITIC Ltd (267 HK) – NDR in Tokyo
• 19-20 May: Reliance Capital (RCAPT IN) – NDR in EU
• 23 May: Krugthai Card (KTC TB) – NDR in HK
• 26 May: Pax Global (327 HK) – Group Luncheon in HK
• 30 May: Burson Group Ltd (BAP AU) – NDR in US

Daiwa Asian Events

• 26-28 Apr: Daiwa Consumer and Gaming Conference 2016 in HK
• 24 May: SET Roadshow 2016 – Thailand's New Drive in HK
• 26-27 May: SET Roadshow 2016 – Thailand's New Drive in Tokyo
• 31 May–1 Jun: Daiwa Investment Conference New York 2016
• 3 Jun: Daiwa Investment Conference San Francisco 2016
• 6-7 Jun: Daiwa Investment Conference London 2016; Daiwa Australia Corporate Event Tokyo 2016
• 20-24 Jun: Daiwa Auto & Industrial Leaders Conference 2016 in HK

Regional Indices Performance

Financial Summary – Mapletree Industrial Trust

Key Financials (SGDm)

Forecast Revisions (%)

Daiwa Tech Buy Ideas

Note: Target prices are in local currency.

Key Takeaways

• MIT's performance was in line with expectations, but the rating was downgraded due to overvaluation concerns.
• Tsingtao Brewery underperformed compared to its peers, with weak sales and a low ROE.
• The Kumamoto earthquake had limited impact on the Asian tech food-chain, except for the large-panel display supply chain.
• Daiwa recommends several tech stocks for Buy or Outperform based on growth potential and sector dynamics.
• Upcoming roadshows and events are highlighted for potential investor engagement.