20170824-大华继显-Regional_Morning_Notes_42页_2mb

Regional Morning Notes Summary

Core Content

This document provides a summary of stock performance and financial results for several companies across different regions, focusing on China, Indonesia, Malaysia, and Singapore. It includes key financial metrics, analyst recommendations, and market valuations, along with updates on corporate events and key indices.

Main Points by Region

China

• China Resources Land (1109 HK)
  • 1H17 revenue declined by 21% YoY due to an uneven delivery schedule.
  • Despite this, the company maintains a BUY rating with a target price of HK$28.10.
  • The company has HK$67b in unbooked revenue to be recognized in 2H17 and management guidance for higher GFA deliveries in 2017.
  • Net profit attributable to shareholders declined by 33.1% YoY, but core net profit fell by 48.1% due to revaluation gains from IP.
  • The company is trading at a 32.7% discount to RNAV, with a 20% discount range.
  • Management expects to achieve HK$10b-11b in recurring income by 2019.
  • Leverage increased to 49.8% in 1H17, but borrowing costs decreased.

China Yongda Auto Services Holdings (3669 HK)

• 1H17 results beat expectations, with a 70% YoY increase in net profit to Rmb652m.
• The improvement was driven by higher gross margins in new-car sales and robust after-sales service revenue.
• The company raised its target price to HK$15.00, up 40.7% from the previous price.
• The new BMW 5-series is expected to contribute further to earnings in 2H17.
• The company operates 4S dealership stores, showrooms, and repair centers, providing car rental and finance leasing services.
• Store expansion was in line with expectations, with five stores built and 11 stores acquired in 1H17, raising the total store count to 230.

Indonesia

• Bank Mandiri (BMRI IJ)
  • Maintained HOLD rating with a target price of Rp11,800.
  • Potential trading idea: Abnormal returns of >9% during the last stock split.

Malaysia

• Genting Plantations (GENP MK)

  • 2Q17 results were within expectations, with a higher dividend declared.
  • The company is expected to see earnings mirroring 1H17 in 2H17.
  • The company is trading at a rich valuation, which may have already factored in the good earnings.

• IJM Corporation (IJM MK)

  • 1QFY18 earnings were within expectations, boosted by the strong infrastructure division.
  • Maintain BUY rating with a target price of RM3.95.

• Magnum (MAG MK)

  • 2Q17 results were largely in line.
  • Operational improvements and resumed dividend payments in 2Q17.
  • Expect more catalysts ahead; maintain BUY.

• Inari Amertron (INRI MK)

  • Positive developments in various business segments.
  • Strong quarters ahead, but the recent share price run-up has factored in earnings optimism.
  • Maintain HOLD rating with a target price of RM2.36.

Singapore

• IHHealthcare (IHHP)

  • 1H17 earnings missed due to high start-up costs.
  • Maintain HOLD rating with a target price of S$1.73.

• ComfortDelGro Corporation (CD SP)

  • Potential Uber alliance may improve taxi utilisation rate.
  • Maintain HOLD rating with a target price of S$2.37.

Thailand

• Thai Vegetable Oil (TVO TB)

  • 2Q17 earnings were disappointing.
  • Maintain SELL rating with a target price of Bt24.75.

• Bangkok Dusit Medical Services (BDMS TB)

  • Earnings growth was negative to moderate.
  • Current valuation looks expensive; maintain SELL rating with a target price of Bt16.00.

Key Indices

Top Picks

BUY

• Alibaba (BABA US): Target price of US$205.00, current price of US$175.80, upside of 16.6%.
• Beijing Ent. Water (371 HK): Target price of HK$7.60, current price of HK$6.51, upside of 16.7%.
• Ace Hardware (ACES IJ): Target price of IJ$1,300.00, current price of IJ$1,075.00, upside of 20.9%.
• Waskita Karya (WSKT IJ): Target price of IJ$3,350.00, current price of IJ$2,260.00, upside of 48.2%.
• Ekovest (EKO MK): Target price of MK$1.55, current price of MK$1.13, upside of 37.2%.
• OCBC (OCBC SP): Target price of SP$13.38, current price of SP$10.99, upside of 21.7%.
• Siam Cement (SCC TB): Target price of TB$600.00, current price of TB$490.00, upside of 22.4%.

SELL

• Great Wall Motor (2333 HK): Target price of HK$5.50, current price of HK$10.08, downside of 45.4%.
• Sapura Energy (SAPE MK): Target price of MK$1.38, current price of MK$1.50, downside of 8.0%.

Key Assumptions

Corporate Events

Valuation and Earnings Forecast

Analysts

• China Resources Land (1109 HK): Wendy Liu
• China Yongda Auto Services Holdings (3669 HK): Ken Lee, Sophie Yu

Summary

The document outlines the financial performance and analyst ratings for various companies across different regions. It highlights that while some companies like China Yongda Auto Services Holdings performed better than expected, others like China Resources Land saw lower growth compared to peers. Key financial metrics and valuations are provided, along with upcoming corporate events and market indices. The overall outlook remains positive for some companies, with continued growth expectations and revised forecasts, while others are recommended for caution due to disappointing results or overvaluation.