20150317-大和证券-Asia_Pacific_Daily_54页_3mb

Asia Pacific Daily Summary

Core Content

The Asia Pacific Daily report covers a range of financial updates and events, including company-specific analyses, macroeconomic research, and upcoming corporate events. The focus is on Regal REIT (1881 HK) and MediaTek (2454 TT), with other companies and regional indices also discussed. The report is published by Daiwa and includes both rating changes and target price updates for selected stocks, along with market performance data and financial summaries.

Main Points

1. Regal REIT (1881 HK)

• Rating Change: Upgraded from Outperform to Buy.
• Target Price: HKD2.90 (unchanged).
• Upside: 34.9% from the 16 Mar price of HKD2.15.
• Reason for Upgrade:
  • Extension of the Lease Agreement until end-2020, ensuring continuity and stability for DPU.
  • Amendment to Trust Deed allows more flexibility in investment and redevelopment.
  • Improved DPU yield to 8.7% for 2015 and 9.0% for 2016.
• Key Financials (2015E):
  • Revenue: HKD1,031 million.
  • Net Property Income: HKD1,019 million.
  • DPU: HKD0.188.
  • PER: 11.9.
  • Book Value per Unit: HKD5.074.
• Main Risk: Sharp decline in tourist arrivals to Hong Kong.

2. MediaTek (2454 TT)

• Rating Change: Upgraded from Hold to Buy.
• Target Price: TWD550.00 (up from TWD450.00).
• Upside: 27.3% from the 16 Mar price of TWD432.00.
• Reason for Upgrade:
  • Expected 4G market-share gains and margin recovery in 2016.
  • Forecasts show global 4G chipset market share increasing to 20% in 2015, 30% in 2016, and 35%+ in 2017.
  • Structural margin recovery due to:
    • Product-mix shift toward 4G slowing ASP erosion.
    • Better yields improving COGS.
    • Scale economies from market-share gains lowering opex ratio.
• EPS Forecast:
  • Revised 2015E EPS down by 16% to reflect transitional margin erosion.
  • 2016E EPS forecast for 30% YoY growth.

3. Other Companies Mentioned

• Soechi Lines (SOCI IJ): Buy rating.
• Texhong Textile (2678 HK): Hold rating.
• Wharf Holdings (4 HK): Buy rating.
• Lifestyle (1212 HK): Outperform rating.
• Soho China (410 HK): Not Rated.
• LG Household & Health Care (051900 KS): Not Rated.
• Singapore Property Developers: Positive rating.
• Keppel Infrastructure Trust (KIT SP): Not Rated.
• Malaysia Timber: Neutral rating.
• MBM (MBM MK): Buy rating.
• Advanced Info Service (ADVANC TB): Buy rating.
• China Aircraft Leasing Group (1848 HK): NDR events scheduled for 27-30 Mar.
• PICC Group (1339 HK): NDR events scheduled for 30 Mar-1 Apr.
• Cosmax Inc (192820 KS): NDR events scheduled for 30 Mar-2 Apr.
• Binhai Investment (2886 HK): NDR events scheduled for 31 Mar.
• GCL Energy (451 HK): NDR events scheduled for 31 Mar.
• AMVIG (2300 HK): NDR events scheduled for 31 Mar.

4. Company Roadshows

• A series of NDR (Non-Disclosed Roadshow) events are scheduled from 19 Mar to 31 Mar 2015, covering companies such as:
  • Dynam (6889 HK)
  • Investa Office Fund (IOF AU)
  • CIMC Enric (3899 HK)
  • Charoen Pokphand Food (CPF TB)
  • Valuetronics Holdings Ltd (VALUE SP)
  • Siam Global (GLOBAL TB)
  • Sino-Ocean Land (3377 HK)
  • China Suntien (956 HK)
  • China Aircraft Leasing Group (1848 HK)
  • PICC Group (1339 HK)
  • Cosmax Inc (192820 KS)
  • Binhai Investment (2886 HK)
  • GCL Energy (451 HK)
  • AMVIG (2300 HK)

5. Daiwa Asian Events

• Upcoming events include:
  • Daiwa Taiwan Corporate Day (19-20 Mar, Tokyo; 30-31 Mar, Singapore).
  • Daiwa Consumer and Gaming Conference 2015 (21-23 Apr, Hong Kong).
  • Daiwa Investment Conference in New York, San Francisco, and London (May-June 2015).
  • Hong Kong China Investment Seminar in Singapore and Tokyo (June 2015).

6. Regional Indices (as of 13 Mar 2015)

• Performance changes and EPS growth data for various markets, including:
  • TPX: 10.7% YTD.
  • HSCEI: -1.4% YTD.
  • HSI: 1.5% YTD.
  • KOSPI: 3.7% YTD.
  • TWSE: 2.2% YTD.
  • SENSEX: 3.4% YTD.
  • FSSTI: 0.3% YTD.
  • FBMKLCI: 1.1% YTD.
  • SET: 1.2% YTD.
  • PCOMP: 6.9% YTD.
  • JCI: 4.0% YTD.
  • AS51: 7.1% YTD.
• PER and P/BV (Price-to-Book Value) data also included for each market.

Key Information

• Regal REIT is the only listed hotel REIT in Hong Kong, with its parent company, Regal Hotels, holding 74% of the shares.
• The Daiwa Consumer and Gaming Conference 2015 is scheduled for 21st - 23rd April 2015 in Hong Kong.
• The MSCI Universe is used as a valuation benchmark.
• Valuation based on MSCI Universe is as of 13 March 2015.

Conclusion

The report highlights the upgrading of ratings for Regal REIT and MediaTek, based on improved financial outlook and strategic flexibility. It also outlines upcoming corporate events, market performance, and key financial metrics for various companies and indices in the Asia Pacific region. Investors are advised to consider the new earnings-growth cycle for MediaTek and the stability and yield of Regal REIT.