20150521-杰富瑞-Today_At_A_Glance_13页_334kb_334kb

Asia Research Summary

Core Content Overview

This document provides a comprehensive summary of recent market insights and analyst recommendations for various companies across Asia, with a focus on financial performance, future projections, and investment strategies. It includes analysis of key takeaways from earnings reports, company-specific updates, and sector-wide trends.

Main Companies and Their Analysis

China Cosco and CSD Partnership

• Company: China Cosco Holdings - H, China Shipping Dev. - H
• Key Takeaway: A partnership to acquire 4 Valemax vessels and a long-term cargo transportation agreement with Vale is expected to enhance stability and market share for Chinese shipping companies.
• Rating: HOLD
• Price Target: RMB 0.36 to RMB 0.12 (Current Year), RMB 0.30 to RMB 0.29 (Next Year)
• Est. Type: EPS

Qihoo 360

• Company: QIHU
• Key Takeaway: 1Q15 results beat expectations, with search revenue growth driven by medical search and PC monetization. However, mobile app store ad and game revenue face risks due to rising competition.
• Rating: HOLD
• Price Target: $54.00 to $60.00
• Est. Type: EPS Non-GAAP

Tarena International

• Company: TEDU
• Key Takeaway: Strong enrollment growth post-CNY, with non-IT courses accounting for 44% of enrollments. Expected 2H15 rebound due to back-end revenue loading.
• Rating: BUY
• Price Target: $16.20
• Est. Type: EPS

Fufeng Group Limited

• Company: 546 HK
• Key Takeaway: Second price increase in two months, indicating margin expansion. Raised net profit forecasts for 2015E, 2016E, and 2017E.
• Rating: BUY
• Price Target: HK$7.10 to HK$7.75
• Est. Type: EPS

SAIC Motor

• Company: 600104 CH
• Key Takeaway: Management comments on price cuts, which are unlikely to be retracted. Profitability depends on volume improvement.
• Rating: HOLD
• Price Target: RMB24.00
• Est. Type: EPS

Samsung Electro-Mechanics Co Ltd

• Company: 009150 KS
• Key Takeaway: Expected structural profitability improvement with strong earnings from LCR and DM divisions, driven by mobile MLCC supply shortage and Galaxy S6 production.
• Rating: BUY
• Price Target: KRW98,000
• Est. Type: EPS

ASKUL Corp

• Company: 2678 JP
• Key Takeaway: Expected to deliver near guidance for FY5/15, with a share buyback plan. Conservative guidance for FY5/16 expected.
• Rating: BUY
• Price Target: ¥3,150 to ¥3,750
• Est. Type: EPS

TSH Resources

• Company: TSH MK
• Key Takeaway: Weak 1Q15 results due to FFB production decline and lower CPO prices. Maintain Sell due to excessive valuations.
• Rating: SELL
• Price Target: MYR2.00

Tune Insurance

• Company: TIH MK
• Key Takeaway: 1Q15 core profit grew 12% YoY, driven by higher premiums and investment income. Expected 2H15 earnings improvement.
• Rating: BUY
• Price Target: MYR2.17

Hota Industrial Manufacturing Co Ltd

• Company: 1536 TT
• Key Takeaway: Strong 1Q15 EPS due to product mix optimization. Expected FY15 sales and EPS growth to NT$5.28bn and NT$4.36, respectively.
• Rating: ADD
• Price Target: TWD68.00 to TWD88.00

Central Plaza Hotel

• Company: CENTEL TB
• Key Takeaway: Hotel margins recovered more than expected, with strong Revpar growth in Bangkok. Revisions to earnings estimates upward.
• Rating: HOLD
• Price Target: THB30.00 to THB34.00

Kuala Lumpur Kepong Berhad

• Company: KLK MK
• Key Takeaway: 2QFY15 results below expectations due to weaker earnings from plantations and refinery. Maintain Sell with TP of MYR20.00.

CIMB Group Holdings

• Company: CIMB MK
• Key Takeaway: 1Q15 net profit improved from 4Q14, with cost savings and lumpy provisions expected to disappear in 2H15. Positive turnaround outlook.
• Rating: BUY
• Price Target: MYR7.05

Axiata Group Bhd

• Company: AXIATA.MK
• Key Takeaway: Diversified cellular operations provide better growth potential compared to domestic peers. Valuation is considered the cheapest relative to peers.
• Rating: HOLD
• Price Target: MYR6.46

T&D Holdings

• Company: 8795 JP
• Key Takeaway: Share buyback funded by a convertible bond, which is a positive development. However, concerns remain on earnings momentum and volatility.
• Rating: UNDERPERFORM
• Price Target: ¥1,540

Boral

• Company: BLD AU
• Key Takeaway: Construction materials demand is strong in NSW, with record building activity. Price increases are mixed, and earnings recovery expected in 2H15.
• Rating: NEUTRAL
• Price Target: AUD5.59

IHI

• Company: 7013 JP
• Key Takeaway: Plant visit feedback indicates acceleration in SPB tank production. Drillship construction for EAS is on hold.
• Rating: HOLD
• Price Target: ¥530

South32 Limited

• Company: S32 AU
• Key Takeaway: Trading close to valuation, with excellent earnings multiples and potential high franked dividend yield. Positive recommendation.
• Rating: POSITIVE
• Price Target: AUD2.42

Key Market Trends

• Japan: 1Q15 GDP growth of 2.4% (annualized) outperformed expectations, driven by private investment and consumption. Abenomics has a positive impact on real estate.
• Real Estate: Positive outlook on Japanese real estate, with Mitsui Fudosan and logistic JREITs as top picks.
• Construction Materials: Expected recovery in earnings from 2Q15 onwards, with a full-fledged boom anticipated due to increased housing starts and new apartment supply.
• Insurance: Non-life insurers reported mixed results, with Tokio Marine and Sompo Japan showing value unlock potential.
• Asia: Overall, the region is seen as a growth opportunity, with several companies showing potential for improvement and value creation.

Events and Marketing Activities

• Conferences: A list of upcoming Jefferies conferences in 2015, including the Boston Energy Symposium, Healthcare Conference, and others.
• Company Marketing: A range of events and meetings with various companies, such as Rigel Pharmaceuticals, United Rentals, and Symantec Corp.
• Analyst Marketing: Analysts are attending various marketing events in cities like Austin, Dallas, New York, and others, highlighting their presence and engagement with the market.

Summary of Key Points

• The report highlights several companies in Asia with varied investment outlooks, from strong Buy recommendations to Sell.
• Earnings performance, margin recovery, and future growth projections are central themes.
• Analysts are optimistic about certain sectors like real estate and construction materials, while cautious about others like insurance and financial services.
• Marketing events and conferences are being held to engage with investors and companies, indicating active market participation.