Asia Pacific Daily Summary - 26 August 2016
Core Content Overview
This document provides a summary of stock research and market performance in the Asia Pacific region. It includes analyst ratings, target prices, company performance data, and upcoming events. The focus is on Sinotrans (598 HK) and other companies across different sectors, with an emphasis on financial performance, macroeconomic impacts, and valuation trends.
Main Analyst Ratings and Key Points
Sinotrans (598 HK)
- Analyst: Kelvin Lau
- Rating Change: Outperform → Underperform
- Target Price Change: HKD3.8 → HKD3.6
- Key Points:
- 1H16 results were unexciting, with a weak macroeconomic environment affecting logistics demand.
- Segmental profit growth from freight forwarding and logistics was only 0.1% and 4.6% YoY, respectively.
- Storage and terminal services segment profit dropped by 28.7% YoY.
- Net profit increased by 10% YoY to CNY967m, but recurring net profit was only up 2% YoY.
- Management expects no near-term recovery and is focusing on cross-border e-commerce development.
- Forecast revisions for 2016-18E EPS were cut by 8-15%.
- Key risks include higher-than-expected logistics demand and potential asset injection.
Hyundai Steel (004020 KS)
- Analyst: Sung Yop Chung
- Rating Change: Outperform → Hold
- Target Price Change: KRW53,000
- Key Points:
- Slow progress towards steel price increase.
- Analysts remain cautious about the company's future performance.
Jaya Tiasa (JT MK)
- Analyst: Nadia Aquidah
- Rating Change: Hold → Buy
- Target Price Change: RM1.53
- Key Points:
- FY16 results exceeded expectations.
- Strong potential for earnings growth.
TPARK Logistics Property (TLOGIS TB)
- Analyst: Limsuthiwanpoom
- Rating Change: Hold → Sell
- Target Price Change: Bt10.50
- Key Points:
- Falling occupancy rates.
- Weak performance in the logistics property sector.
Gajah Tunggal (GJTL IJ)
- Analyst: Gilang Purnama
- Rating Change: Reduce → Buy
- Target Price Change: IDR1,700
- Key Points:
- Turning positive, with an upgrade to BUY.
- Strong earnings growth expected.
Other Research Highlights
Hengan International Group (1044 HK)
- Analyst: Anson Chan
- Rating: Hold
- Key Points:
- 1H16 net profit growth weakened.
Li & Fung (494 HK)
- Analyst: Anson Chan
- Rating: Hold
- Key Points:
- 1H16 net profit was dragged down by a deflationary environment.
Bank of Communications (3328 HK)
- Analyst: Leon Qi
- Rating: Buy
- Key Points:
- Stabilising fundamentals.
China Taiping Insurance Holdings (966 HK)
- Analyst: Leon Qi
- Rating: Buy
- Key Points:
- Dividend upside is emerging.
China Mengniu Dairy (2319 HK)
- Analyst: Anson Chan
- Rating: Underperform
- Key Points:
- 1H16 reported a 20% YoY net profit decline.
RHB Bank (RHBBANK MK)
- Analyst: Tan Ei Leen
- Rating: Buy
- Key Points:
- Analyst suggests looking past the Swiber bump.
IHH Healthcare (IHH MK)
- Analyst: Nadia Aquidah
- Rating: Hold
- Key Points:
- 1H16 earnings were below expectations.
Axiata (AXIATA MK)
- Analyst: Lim Tee Yang
- Rating: Hold
- Key Points:
IJM Corp (IJM MK)
- Analyst: Loong Chee Wei
- Rating: Buy
- Key Points:
- Strong performance despite property drag.
Upcoming Company Roadshows
| Date |
Company |
Event |
Venue |
| 25-26 Aug |
Shopping Centres Australasia (SCP AU) |
NDR |
Tokyo |
| 25-26 Aug |
China State Construction International (3311 HK) |
NDR |
TW |
| 26 Aug |
AMVIG (2300 HK) |
NDR |
HK |
| 26 Aug |
China Aircraft Leasing Group (1848 HK) |
NDR |
HK |
| 26 Aug |
China Aircraft Leasing Group (1848 HK) |
Group Luncheon (VC) |
SG |
| 26 Aug |
Dah Chong Hong (1828 HK) |
NDR |
HK |
| 26 Aug |
Dah Chong Hong (1828 HK) |
Group Luncheon (VC) |
SG |
| 26 Aug |
Swire Properties (1972 HK) |
NDR |
SG |
| 29-30 Aug |
Texhong Textiles (2678 HK) |
NDR |
Tokyo |
| 29-30 Aug |
PICC Group (1339 HK) |
NDR |
HK |
| 29-30 Aug |
China Resources Power (836 HK) |
NDR |
SG |
| 29-30 Aug |
Pou Sheng International (3813 HK) |
NDR |
SG |
| 29-30 Aug |
AAC Technologies (2018 HK) |
NDR |
SG |
| 29-30 Aug |
Xstep (1368 HK) |
NDR |
US |
| 30 Aug |
SAI Global Limited (SAI AU) |
Telecon. |
Global |
| 30 Aug |
CT Environmental (1363 HK) |
NDR |
HK |
| 30 Aug |
Q Technology (1478 HK) |
Group Luncheon |
HK |
| 30-31 Aug |
China Lesso Group (2128 HK) |
NDR |
EU |
| 30 Aug - 1 Sep |
China Water Affairs (855 HK) |
NDR |
EU |
| 31 Aug |
Amcor Limited (AMC AU) |
Telecon. |
Global |
| 31 Aug - 1 Sep |
SK Hynix (000660 KS) |
NDR |
SG |
| 1 Sep |
China Singyes (750 HK) |
NDR |
HK |
Daiwa Asian Events
| Date |
Event |
Venue |
| 29-Aug |
Daiwa Asia Water Day 2016 |
Zurich |
| 6-8 Sep |
Daiwa Pan-Asia Innovative Companies Conference |
NY, Toronto |
| 8-9 Sep |
Daiwa Pan Asia REIT Day Tokyo 2016 |
Tokyo |
| 12-13 Sep |
The Seventh Daiwa REIT Day 2016 |
HK |
| 26-27 Sep |
Daiwa ASEAN Conference - Daiwa-Affin Hwang Malaysia Corporate Day Tokyo 2016 |
Tokyo |
| 8-11 Nov |
Daiwa Investment Conference Hong Kong 2016 |
HK |
Regional Indices Performance
| Market |
1D (%) |
1M (%) |
YTD (%) |
16E EPS (%) |
17E EPS (%) |
16E PER |
17E PER |
| TPX |
-0.2 |
-1.6 |
-15.7 |
10.8 |
10.2 |
13.7 |
12.5 |
| HSCEI |
-0.0 |
5.2 |
-1.6 |
-3.2 |
4.9 |
7.1 |
6.7 |
| HSI |
-0.0 |
3.7 |
4.1 |
-1.4 |
8.6 |
12.4 |
11.4 |
| KOSPI |
-0.0 |
1.5 |
4.2 |
27.7 |
9.2 |
11.0 |
10.1 |
| TWSE |
1.1 |
1.4 |
9.3 |
-1.8 |
11.7 |
14.9 |
13.6 |
| SENSEX* |
-0.8 |
-0.9 |
6.6 |
12.9 |
18.2 |
19.4** |
16.4** |
| FSSTI |
0.3 |
-1.8 |
-0.2 |
-5.9 |
4.9 |
13.6 |
12.9 |
| FBMKLCI* |
-0.1 |
0.7 |
-0.7 |
-2.5 |
8.1 |
17.1** |
15.8** |
| SET* |
-0.2 |
2.1 |
19.9 |
10.7 |
12.4 |
16.2** |
14.4** |
| PCOMP* |
-0.1 |
-2.4 |
13.0 |
7.6 |
9.3 |
20.7** |
19.0** |
| JCI* |
0.9 |
4.5 |
18.7 |
7.2 |
14.5 |
18.3** |
16.0** |
| AS51 |
-0.4 |
0.2 |
4.6 |
5.6 |
8.3 |
16.9 |
15.6 |
*Valuation based on MSCI Universe
**MSCI index priced as of 24 Aug
Financial Summary and Valuation
Revenue and Net Profit
| Year to 31 Dec |
2016E (CNYm) |
2017E (CNYm) |
2018E (CNYm) |
| Revenue |
43,458 |
44,320 |
45,729 |
| Net Profit |
1,235 |
1,300 |
1,350 |
Earnings Per Share (EPS)
| Year to 31 Dec |
2016E (CNY) |
2017E (CNY) |
2018E (CNY) |
| EPS (Reported) |
0.268 |
0.282 |
0.293 |
| EPS (Adjusted) |
0.268 |
0.282 |
0.293 |
Valuation Metrics
| Metric |
2016E |
2017E |
| PER (x) |
12.4 |
11.8 |
| PBR (x) |
1.0 |
0.9 |
| EV/EBITDA (x) |
6.7 |
7.3 |
| Dividend Yield (%) |
2.7 |
2.6 |
| ROE (%) |
7.9 |
7.8 |
Summary of Sinotrans 1H16 Results
| Metric |
1H15 (CNYm) |
1H16 (CNYm) |
YoY Change (%) |
| Revenue |
21,678 |
21,678 |
-5% |
| Operating Profit |
870 |
1,412 |
-23% |
| EBITDA |
1,190 |
2,082 |
-17% |
| Net Profit (Reported) |
967 |
1,349 |
10% |
| Net Profit (Adjusted) |
699 |
1,235 |
2% |
| EPS (Reported) |
0.21 |
0.293 |
11% |
| EPS (Adjusted) |
0.15 |
0.268 |
2% |
Valuation Comparisons with Global Logistics Peers
| Company |
PER (x) |
PBR (x) |
EV/EBITDA (x) |
Div Yield (%) |
ROE (%) |
| Sinotrans Limited-H (598 HK) |
12.4 |
1.0 |
6.7 |
2.7 |
7.9 |
| Kerry Logistics Network Ltd (636 HK) |
16.8 |
1.1 |
9.2 |
1.5 |
6.7 |
| Deutsche Post Ag-Reg (DPW GY) |
14.2 |
2.9 |
8.0 |
3.4 |
20.5 |
| Kuehne & Nagel Intl Ag-Reg (KNIN US) |
22.9 |
7.4 |
14.5 |
3.9 |
33.6 |
| Expeditors Intl Wash Inc (EXPD US) |
21.2 |
5.3 |
11.3 |
1.5 |
25.7 |
| Nippon Express Co Ltd (9062 JP) |
13.9 |
0.9 |
6.6 |
2.1 |
6.7 |
| Yamato Holdings Co Ltd (9064 JP) |
24.8 |
1.7 |
8.4 |
1.1 |
7.0 |
| Mitsubishi Logistics Corp (9301 JP) |
30.5 |
1.0 |
12.2 |
0.8 |
3.4 |
Key Takeaways
- Sinotrans experienced weak performance in 1H16, with the macro slowdown impacting its logistics business.
- Analysts have revised their ratings and target prices based on the company's financial results and future outlook.
- The document outlines the financial performance and valuation trends of various companies across different sectors.
- Upcoming events such as roadshows and conferences are listed, providing insight into investor engagement and market trends.
- Regional indices show mixed performance, with some experiencing declines and others showing growth.