20140829-富瑞金融香港公司-Today_At_A_Glance_18页_425kb

Asia Research Summary

Core Content

This document provides an overview of key financial insights and stock recommendations for various companies across Asia, with a focus on the property, banking, utilities, and communications sectors. It includes analysis of quarterly results, earnings forecasts, price targets, and investment ratings based on the performance and outlook of each company.

Main Points

Property Sector

• PICC Property and Casualty Co. (2328 HK): Underwriting margins are stabilizing, and the stock is upgraded to BUY with a price target of HK$15.50.
• China Mengniu Dairy Co. (2319 HK): Results are in-line, with a focus on product mix and price adjustments. The stock is rated HOLD with a price target of HK$34.30.
• Anton Oilfield Services Group (3337 HK): Strong performance due to the boom in conventional gas development. The stock is rated BUY with a price target of HK$6.00.
• GCL-Poly Energy Holdings (3800 HK): Strong NPAT growth driven by solar gross margin recovery. The stock is rated BUY with a price target of HK$3.20.
• Westfield Corporation (WFD AU): Maintains a Neutral recommendation due to fair valuation, but has a strong growth profile and defensive USD exposure.
• Asia Pacific Data Centre Group (AJD AU): Positive outlook due to attractive distribution yield and long-term lease agreements. Rated Positive with a price target of AUD1.12.
• Adelaide Brighton (ABC AU): Outlook improving for CY14, with a price target of AUD3.99.
• Pioneer Credit (PNC AU): On track to deliver, with a price target of AUD1.93.
• Ramsay Health Care (RHC AU): High debt load and valuation concerns lead to a Negative recommendation.

Banking Sector

• China Comservice (552 HK): Strong performance with improved profitability and capital. Rated BUY with a price target of HK$3.90.
• China Minsheng Banking Corp. (1988 HK): Beat on low provisioning, but high costs offset revenue growth. Rated BUY with a price target of HK$8.50.
• China CITIC Bank (998 HK): In-line results with strong revenue generation. Rated BUY with a price target of HK$5.80.
• Industrial and Commercial Bank of China (1398 HK): Strong profitability and capital ratios. Rated BUY with a price target of HK$6.20.
• China Cosco Holdings - H (1919 HK): Operating loss narrowed significantly, but rated UNDERPERFORM with a price target of HK$2.60.
• China Shipping Container - H (2866 HK): Operating loss narrowed due to cost reduction. Rated BUY with a price target of HK$2.40.
• Malayan Banking Berhad (MAY MK): Net profit increased by 3%, but non-interest income remains weak. Rated BUY with a price target of MYR10.90.
• IGB Corp Berhad (IGB MK): Strong earnings growth from property divisions. Rated BUY with a price target of MYR2.87.

Utilities Sector

• Rural Electrification Corp. (RECL IN): Management call highlights restructuring and lower earnings projections. Rated HOLD with a price target of INR295.
• Wipro (WPRO IN): Revenue growth remains weak, and margins are constrained. Rated HOLD with a price target of INR550.
• Iwatani (8088 JP): Government support for fuel cell vehicles leads to a price target upgrade to ¥910.
• Kangwon Land (035250 KS): Entered second growth phase with improved earnings and potential for shareholder-friendly dividends. Rated BUY with a price target of KRW42,000.

Key Information

• Financing Concerns: Developers are facing liquidity issues and increasing reliance on shadow banking, raising refinancing risks.
• Earnings Trends: Some companies like PICC, GCL-Poly, and China Shipping reported strong earnings growth, while others like Wipro and Ramsay Health Care struggled with growth and valuation.
• Price Targets: Multiple companies have updated price targets, reflecting improved performance and future expectations.
• Ratings: Companies are rated as BUY, HOLD, UNDERPERFORM, and Neutral based on their financial performance and market outlook.
• Region: All analyses are focused on the Asia region, with specific mention of companies in Hong Kong, Australia, and Japan.

Summary of Ratings and Price Targets

Outlook

• Property: Focus on quality plays and potential for margin improvement.
• Banking: Strong profitability and capital ratios are key factors, with caution on refinancing and debt levels.
• Utilities: Mixed outlook with some companies showing signs of improvement and others still facing challenges.
• Communications: Vocus Communications and Pioneer Credit show positive signs due to improved asset utilization and growth strategies.

Overall, the document suggests a cautious but positive outlook for certain Asian companies, with a mix of buy, hold, and underperform ratings based on financial performance, sector dynamics, and future growth potential.