20140821-杰富瑞-PrimeTime_Asia_Today_At_A_Glance_15页_353kb

Asia Research Summary

Core Content Overview

This document provides a summary of recent research and analysis on several Asian companies, focusing on their financial performance, valuation, and future outlook. Each company is evaluated with a rating, price target, and key takeaways based on their earnings and strategic developments.

Key Companies and Their Analysis

Biostime International (HKSE: 1112 HK)

• Rating: HOLD
• Price Target: HK$36.00 (▼ from HK$60.00)
• Key Takeaway: 1H results missed expectations due to competition and internal restructuring. Management is focusing on enhancing the online platform and new products. We cut forecasts and revised PT down.

Cosco Pacific Ltd. (HKSE: 1199 HK)

• Rating: HOLD
• Price Target: HK$11.20 (▼ from HK$11.80)
• Key Takeaway: Container leasing segment is under pressure, which may offset port earnings. We believe consensus estimates will come down after 1H14 results.

Tarena International (NASDAQ: TEDU)

• Rating: BUY
• Price Target: ▲ from $13.00 to $17.30
• Key Takeaway: 2Q14 results beat expectations. Marketing efficiency initiatives are expected to complete by YE14, leading to margin improvement and a higher long-term revenue CAGR.

ZTE Corporation (HKSE: 763 HK)

• Rating: BUY
• Price Target: ▲ from ¥50,000 to ¥52,000
• Key Takeaway: Earnings forecast revised up after strong 1Q results. Keyence is well positioned for record profit in FY3/15 due to auto sector growth and overseas expansion.

China Longyuan Power Group (HKSE: 916 HK)

• Rating: BUY
• Price Target: HK$10.10
• Key Takeaway: 1H14 EPS of RMB 0.17, down 7% YoY. Despite lower-than-expected results, we believe long-term fundamentals remain strong and maintain a Buy rating.

Tox Free Solutions (ASX: TOX AU)

• Rating: Neutral
• Price Target: ▼ from AUD3.54 to AUD3.21
• Key Takeaway: 1H14 results missed due to lower pricing and utilization. Technical and Environmental Services showed some margin expansion in 2H, but the overall outlook remains uncertain.

TransPacific Industries Group (ASX: TPI AU)

• Rating: Not Rated
• Price Target: AUD1.16
• Key Takeaway: The company faced a serious accident in Adelaide, which has not been fully addressed. Financial impact is unclear, and no forecast can be relied upon.

ASKUL Corp. (TSE: 2678 JP)

• Rating: BUY
• Price Target: ▼ from ¥3,500 to ¥3,240
• Key Takeaway: Q1 results were impacted by tax hike and product price increases, but Askul is addressing these issues. We believe fundamentals remain strong.

Keyence (TSE: 6861 JP)

• Rating: BUY
• Price Target: ▲ from ¥50,000 to ¥52,000
• Key Takeaway: Earnings forecast revised up. Keyence is well positioned to achieve record profit in FY3/15 due to auto sector growth and overseas expansion.

Australian Industrial REIT (ASX: ANI AU)

• Rating: Positive
• Price Target: ▲ from AUD2.14 to AUD2.15
• Key Takeaway: Attractive pricing with an 8.2% distribution yield. Management's active leasing approach is expected to drive asset value uplift.

Brambles (ASX: BXB AU)

• Rating: Positive
• Price Target: ▲ from AUD9.74 to AUD9.88
• Key Takeaway: Europe Pallet margins improved, and the company is executing its strategy effectively. We maintain a Positive recommendation.

Coca-Cola Amatil (ASX: CCL AU)

• Rating: Negative
• Price Target: ▼ from AUD9.48 to AUD8.73
• Key Takeaway: Intense competition and structural changes in the market remain key risks. We maintain our Negative recommendation.

Challenger Limited (ASX: CGF AU)

• Rating: Positive
• Price Target: AUD8.65
• Key Takeaway: Strong share price performance, but valuation remains below peers. We maintain a Positive recommendation.

Gas Malaysia (KUL: GMB MK)

• Rating: Sell
• Price Target: MYR3.30 (▼ from MYR3.43)
• Key Takeaway: 2Q14 results fell short of expectations. Valuation is expensive, and we maintain a Sell recommendation.

IOI Corporation Berhad (KUL: IOI MK)

• Rating: Sell
• Price Target: MYR4.40 (▼ from MYR5.00)
• Key Takeaway: Downstream earnings and plantations underperformance led to poor results. We urge investors to wait for a share price correction.

Kuala Lumpur Kepong Berhad (KUL: KLK MK)

• Rating: Sell
• Price Target: MYR20.00 (▼ from MYR23.86)
• Key Takeaway: Downstream-related operations underperformed. We maintain a Sell rating due to limited valuation support.

MBM Resources (KUL: MBM MK)

• Rating: Buy
• Price Target: MYR3.42
• Key Takeaway: Strong rebound in 2Q14 results. We maintain a Buy rating.

China Life Insurance Co Ltd (TSEC: 2823 TT)

• Rating: Add
• Price Target: TWD33.00 (▼ from TWD36.00)
• Key Takeaway: 1H14 earnings were slower due to new business strains and hedging costs. We expect improvement in 2H14 and maintain an Add rating.

Global Mixed-mode Technology Inc (TSEC: 8081 TT)

• Rating: Add
• Price Target: TWD118.00 (▼ from TWD131.00)
• Key Takeaway: 2Q14 results missed expectations due to forex loss. We lower forecasts and suggest investors wait for a share price correction.

Teco Electric and Machinery Co Ltd (TSEC: 1504 TT)

• Rating: Add
• Price Target: TWD39.25
• Key Takeaway: 2Q14 EPS up 41% YoY due to land disposal. We maintain an Add rating and expect steady performance.