20150331-杰富瑞-Today_At_A_Glance_15页_387kb

Asia Research Summary

Core Content

This document provides a summary of key financial insights and ratings for various Asian companies and financial instruments. The analysis includes earnings reports, rating changes, and outlooks for the upcoming fiscal year. The document also covers global research highlights and upcoming Jefferies events.

Main Companies and Their Analysis

CCCC, CRG, and CRCC

• Key Takeaway: CCCC beat expectations, while CRG missed and CRCC was in line. All three companies saw around 10% YoY earnings growth from the infrastructure construction segment. Property development earnings were significant, at 17% for CRG and 11% for CRCC.
• Relative Preference: CCCC > CRCC > CRG
• Note: Track length extension is seen as having peaked in 2014.

Changsha Zoomlion

• Rating Change: Downgraded from Buy to Underperform
• Reason: Poor receivables performance and the first quarterly loss since listing
• Price Target: HK$5.40 to HK$4.00
• Current Year Earnings (e): RMB 0.09 to RMB 0.03
• Next Year Earnings (e): RMB 0.13 to RMB 0.01
• Est. Type: EPS

HC International

• Rating Change: Downgraded to Hold
• Reason: Missed 4Q14 results, no FY15 guidance provided, and uncertainty in new business execution
• Price Target: HK$12.40 to HK$10.00
• Current Year Earnings (e): RMB 0.97 to RMB 0.71
• Next Year Earnings (e): RMB 0.82
• Est. Type: EPS

China High Speed Transmissions (CHST)

• Rating Change: Upgraded to Buy
• Reason: Strong domestic WTG demand expected in 2015, despite one-off losses
• Price Target: HK$6.20 to HK$6.40
• Current Year Earnings (e): RMB 0.42
• Next Year Earnings (e): RMB 0.48
• Est. Type: EPS

Foxconn

• Rating Change: Upgraded to Add
• Reason: Strong demand for high-end metal casings, stable yield curve, and product diversification
• Price Target: TWD 88.00 to TWD 95.00
• Est. Type: EPS

ENN Energy Holdings

• Rating: Buy
• Reason: Beat expectations with 21% YoY adjusted NPAT growth
• Price Target: HK$60.00 to HK$61.10
• Current Year Earnings (e): RMB 2.68 to RMB 2.30
• Next Year Earnings (e): RMB 2.80
• Est. Type: EPS

Evergrande Real Estate Group

• Rating: Hold
• Reason: High yield, but uncertainty in debt rollover and property development
• Price Target: HK$3.30 to HK$3.60
• Current Year Earnings (e): RMB 0.60 to RMB 0.61
• Next Year Earnings (e): RMB 0.54 to RMB 0.58
• Est. Type: EPS

Ginko International

• Rating Change: Raised to Add
• Reason: Positive 2015 outlook, controlled receivables, and potential revenue momentum
• Price Target: TWD 380.00 to TWD 425.00
• Est. Type: EPS

Kulim (M) Berhad

• Rating: Buy
• Reason: Successful disposal of stake in NBPOL unlocks value and provides financial capacity
• Price Target: MYR 4.00 to MYR 3.50

Wowprime Corp

• Rating Change: Reduced to Sell
• Reason: Slower-than-expected recovery from lard oil scandal, damaged brand reputation
• Price Target: TWD 330.00 to TWD 215.00
• Est. Type: EPS

China Shanshui Cement Group

• Rating: Underperform
• Reason: Share price rally despite poor fundamentals, current valuation too high
• Price Target: HK$2.60
• Current Year Earnings (e): RMB 0.24 to RMB 0.19
• Est. Type: EPS

Greentown China Holdings

• Rating: Hold
• Reason: Poor results, financial deterioration, and uncertain management consolidation
• Price Target: HK$7.30
• Current Year Earnings (e): RMB 1.17 to RMB 1.21
• Est. Type: EPS

Shanghai Industrial Hldg Ltd

• Rating: Buy
• Reason: Solid results, potential for growth from M&A and SOE reform
• Price Target: HK$34.80
• Current Year Earnings (e): HK$3.03 to HK$3.13
• Est. Type: EPS

Shanghai Industrial Urban Dev

• Rating: Buy
• Reason: Profit turnaround realized, potential for margin improvement and SOE reform
• Price Target: HK$2.05
• Current Year Earnings (e): HK$0.06 to HK$0.04
• Est. Type: EPS

China Southern Air-H

• Rating: Buy
• Reason: Earnings in line, slowing fleet growth should improve yield and load factor
• Price Target: HK$6.10
• Current Year Earnings (e): RMB 0.73
• Next Year Earnings (e): RMB 0.67
• Est. Type: EPS

Sinopec Yizheng Chemical - H

• Rating: Underperform
• Reason: Historical correction following "A-H Connect" speculation, no significant changes expected
• Price Target: HK$2.00

Dai-ichi Life Insurance

• Rating: Buy
• Reason: Strong mid-term plan with achievable targets and low valuation
• Price Target: ¥2,180
• Current Year Earnings (e): ¥126.15

NTPC

• Rating: Buy
• Reason: High yield on debenture listing, improving earnings and coal block allocations
• Price Target: INR160.00

SK C&C

• Rating: Buy
• Reason: Joint venture with Hon Hai Group, potential for EBITDA growth
• Price Target: KRW335,000

Boardtek Electronics Corp

• Rating Change: Raised to Add
• Reason: Gross margin expansion, improved production, and positive outlook
• Price Target: TWD50.00 to TWD63.00

Siam Commercial Bank

• Rating: Hold
• Reason: Revised down 2015/16 earnings due to lower NIM assumptions and loan growth forecasts
• Price Target: THB204.00 to THB194.00

Lenovo

• Rating: Underperform
• Reason: Weak PC and smartphone markets, management focus on property development
• Price Target: HK$9.00

Global Research Highlights

New Zealand

• Key Takeaway: The Reserve Bank of New Zealand kept the cash rate unchanged, but the long end of the yield curve is flat.
• Region: Global

Jefferies Events

• Upcoming Conferences and Summits:
  • Jefferies 2015 Electronic Payments Summit: April 7, 2015, New York
  • Jefferies 2015 Healthcare REIT Summit: April 7, 2015, New York
  • Jefferies 2015 Chicago Steel and Metals Summit: April 7, 2015, New York
  • Jefferies 2015 Boston Immuno-Oncology Summit: April 15, 2015, Boston
  • Jefferies 2015 Media IR Day: May 8, 2015, New York
  • Jefferies 2015 Hoare Govett UK Companies Summit: May 12, 2015, London

Key Takeaways

• Positive Outlook: Companies like CHST, NTPC, and Ginko show strong potential for growth and are recommended as buys or adds.
• Negative Outlook: Companies like Zoomlion, HC International, and Wowprime face challenges with earnings and valuations, leading to downgrades or sell ratings.
• Uncertainty: Several companies are facing uncertainties due to business transitions, regulatory changes, and market conditions.
• Valuation: Some stocks are considered undervalued, while others are seen as overvalued based on current performance and market expectations.

Summary

The document provides a comprehensive overview of Asian equities and financial instruments, highlighting both positive and negative outlooks. Key companies like CHST, NTPC, and Ginko are upgraded or recommended as buys due to strong performance and growth potential. Conversely, companies like Zoomlion, HC International, and Wowprime are downgraded due to poor performance, uncertainties, and valuations. The global section discusses New Zealand's monetary policy and upcoming events. Overall, the report emphasizes the importance of earnings performance, valuations, and strategic moves in the Asian market.