20140825-杰富瑞-PrimeTime_Asia_15页_361kb

Asia Research Summary

Global Asset Fundflow Tracker - Trends & Trading Opportunity

• Mutual Fund/ETF Investors: Net buyers in global equities, reaching a 10-month high of US$18bn, up from US$2.9bn the previous week.
• Bond Funds: Significant net inflow of US$9.9bn, up from US$3.8bn, with a notable shift from high yield bond withdrawals.
• Commodities: Broad-based net buyer activity totaling US$661mn.
• Money Markets: Continued to attract inflows, net US$12bn, with a total of US$43bn in the last three weeks, including a sharp US$22bn inflow in the week ending 6 Aug.

Key Takeaways by Company

China Resources Gas Group (HKSE: 1193 HK, HK$25.90, HOLD)

• 1H14 EPS of HK$0.58, +20% YoY, below estimates.
• Gas sales gross profits of HK$2.57bn, +21% YoY, offset by lower opex.
• Downgraded to HOLD, price target revised to HK$27.30.

Hilong Holdings Ltd. (HKSE: 1623 HK, HK$4.29, HOLD)

• 1H14 adjusted earnings of RMB156mn, 11% yoy decrease, 36% of full year estimate.
• Miss due to lower domestic drill pipe sales and gross margins.
• Downgraded to HOLD, price target revised to HK$4.50.

Ourgame International Holdings (HKSE: 6899 HK, HK$3.93, BUY)

• 1H14 revenue of RMB207mn, +137% YoY, adj. net profit of RMB63mn, 91x that of 1H13.
• Strong growth in MAU, conversion ratio, and ARPPU on both PC and mobile.
• Reiterated BUY, price target maintained at HK$5.30.

CSR Corp Ltd (HKSE: 1766 HK, HK$7.09, UNDERPERFORM)

• In-line results, but forward PE of 14x suggests underperformance.
• Price target revised to HK$3.40.

China Petroleum & Chemical - H (HKSE: 386 HK, HK$7.71, HOLD)

• 1H14 EPS of RMB0.277, 12% above estimate, 13% YoY growth.
• Market may be distracted by pending divestiture.
• Price target revised to HK$18.60.

China Pacific Insurance (HKSE: 2601 HK, HK$30.45, BUY)

• 1H14 result is solid, especially in Life business growth.
• Life NBV up 20.6%, P&C combined ratio at 99.5%.
• Price target revised to HK$34.00.

Great Wall Motor Co Ltd (HKSE: 2333 HK, HK$30.85, BUY)

• Strong guidance on H2, with potential H8 re-launch before year-end.
• Expected to reach 10,000 units monthly by October.
• Price target revised to HK$38.00.

Comba Telecom Systems Holdings Ltd (HKSE: 2342 HK, HK$3.06, HOLD)

• Returned to profitability in 1H14, driven by 4G deployment.
• Revised up EPS by 12%/5.7% for FY14E/FY15E.
• Price target revised to HK$2.90.

ENN Energy Holdings (HKSE: 2688 HK, HK$57.95, BUY)

• 1H14 diluted EPS of RMB1.00, +46% YoY, in-line with estimates.
• Strong gas sales volumes and new residential connections.
• Price target revised to HK$60.00.

Daikin Industries (NYSE: 6367 JP, ¥6,960, BUY)

• Strong 1Q results driven by China, Asia, and North America.
• Valuation reflects rising expectations, with upside potential.
• Price target revised to ¥8,000.

AMMB Holdings (KUL: AMM MK, MYR7.00, Buy)

• 1QFY15 results were poor, with normalized earnings down 15%.
• Management is optimistic, with strong DCM and CF pipelines.
• Price target revised to MYR8.30.

Naim Holdings Bhd (KUL: NHB MK, MYR3.79, Buy)

• 1H14 normalized earnings improved 60% YoY due to construction division recovery.
• Stock is considered mispriced, with core businesses performing better.
• Price target revised to MYR5.80.

WCT Holdings Bhd (KUL: WCTHG MK, MYR2.28, Buy)

• Domestic construction jobs expected to improve over the next 6-12 months.
• Inexpensive, trading at 13.6x 2014F with 3.6% net yield.
• Price target revised to MYR2.80.

Pos Malaysia Berhad (KUL: POSM MK, MYR5.17, Buy)

• 1QFY15 results disappointing, with earnings down 38% YoY.
• Poor performance attributed to the mail segment and seasonality.
• Price target revised to MYR6.00.

JCY International Bhd (KUL: JCYH MK, MYR0.71, Sell)

• 3QFY14 normalized earnings down 27% qoq, but improved from 3QFY13.
• Earnings expected to remain positive with stronger guidance from key customers.
• Reiterated SELL, price target revised to MYR0.58.

Genting Berhad (KUL: GENT MK, MYR9.82, Buy)

• Business conditions supportive of casinos in Southeast Asia.
• Upgrading and building new properties globally.
• Price target revised to MYR11.98.

China Merchants Property - A (SZSE: 000024 CH, Rmb11.82, BUY)

• Key beneficiary of SOE reform and potential B-H conversion.
• Trading at 52%/58% discount to NAV.
• Price target revised to Rmb16.20.

China Merchants Property - B (SZSE: 200024 CH, HK$12.98, BUY)

• Same as China Merchants Property - A, with similar catalysts.
• Price target revised to HK$18.60.

Iluka Resources (ASX: ILU AU, AUD8.88, Neutral)

• Optimism about zircon demand in H2, but doubts about long-term demand.
• No clear catalyst for short-term outperformance.
• Price target revised to AUD7.82.

Mirvac Group (ASX: MGR AU, AUD1.89, Neutral)

• Strong position in Sydney's high-density market.
• Currently fairly priced, with no clear catalyst.
• Price target revised to AUD1.80.

Super Retail Group (ASX: SUL AU, AUD9.48, Neutral)

• Auto business performing well, but S&L facing structural issues.
• Neutral recommendation due to valuation and recovery risks.
• Price target revised to AUD9.04.

Bega Cheese (ASX: BGA AU, AUD5.25, Neutral)

• Focused on securing milk supply and growing high-margin products.
• Neutral recommendation, with price target revised to AUD4.04.

Federation Centres (ASX: FDC AU, AUD2.73, Positive)

• Delivering on cost control and redevelopment.
• Upside potential from further cost-outs and redevelopment.
• Price target revised to AUD2.80.