20180604-兴业金融证券-Regional_Morning_Cuppa_7页_332kb

Regional Morning Cuppa Summary

Core Content

This document provides a summary of investment insights and recommendations for the Asia-Pacific region, with a focus on Malaysia and Thailand. It includes earnings reviews, sector analysis, individual stock recommendations, and detailed investment ratings. Additionally, it outlines the legal and regulatory disclaimers and restrictions related to the distribution of the report, as well as information about potential conflicts of interest.

Main Points

Malaysia Strategy Overview

• March Quarter Earnings: 52.1% of company results met, 35.7% missed – the highest in six quarters.
• Misses-to-Beats Ratio: Increased to 3.3 from 1.8 in the previous quarter.
• Earnings Revisions: Negative, with 3.5% and 3.2% cuts for 2018F and 2019F respectively.
• Earnings Growth Expectations: Remain relatively intact at +5.3% for 2018 and +7.4% for 2019.
• Government Policy Impact: New economic policies have led to a re-assessment of spending priorities and tax regimes.
• Budget Deficit Target: Set at 2.8% of GDP for 2018.
• Trading Approach: Recommended due to current market dynamics.
• FBM KLCI Target Cut: From 1,850 to 1,810 points, based on a 16x P/E multiple.
• Overweight Sectors: Banks, NBFI, gaming, oil & gas, rubber products, healthcare, basic materials, and utilities.

Thailand – LNG Sector Outlook

• Sector Recommendation: OVERWEIGHT.
• LNG Imports Projections: Expected to increase from ~5mtpa to 33-41mtpa by 2035.
• PTT's Regasification Capacity: Planned to reach 19mtpa by 2023.
• Opportunities for Other Entrants: Exist in the LNG value chain.
• Top Picks for 12 Months: PTT and PTTGC.

Key Investment Recommendations (BUY, NEUTRAL, SELL)

Investment Ratings Overview

• Buy: Share price may exceed 10% over the next 12 months.
• Trading Buy: Share price may exceed 15% over the next 3 months, with uncertain long-term outlook.
• Neutral: Share price may fluctuate within +/-10% over the next 12 months.
• Sell: Share price may fall by more than 10% over the next 12 months.
• Not Rated: Not within regular research coverage.

Legal and Regulatory Disclaimers

• The report is for informational purposes only and does not constitute an offer or solicitation to buy/sell securities.
• Information may be derived from third-party sources and is not independently verified.
• All estimates, projections, and opinions are subject to change and not guaranteed.
• Forward-looking statements are based on assumptions and may not materialize.
• RHB and its affiliates may have interests in the subject companies and may have business relationships with them.
• The report is confidential and not for distribution to unauthorized parties.
• Ownership and conflicts of interest are disclosed, with RHB prohibiting analysts from holding securities of covered companies.

Distribution Restrictions

• Malaysia: Issued by RHB Research Institute Sdn Bhd.
• Thailand: Issued by RHB Securities (Thailand) PCL, a licensed and regulated entity.
• Indonesia: Issued by PT RHB Sekuritas Indonesia, not affiliated with the subject companies.
• Singapore: Issued to accredited, expert, and institutional investors.
• Hong Kong: Issued by RHB Securities Hong Kong Limited, subject to local regulations and disclosures.

Conflict of Interest Statement

• RHBHK may have investment banking relationships with the companies discussed.
• Analysts are prohibited from owning securities of companies covered in the report.
• Disclosures are made to ensure transparency and compliance with local regulations.