Regional Daily Ideas Troika

Transcription

Regional Daily, 7 January 2015
5
Regional Daily
Ideas Troika
Top Stories
Sound Global (967 HK)
Industrial - Environment Control
BUY HKD8.32 TP: HKD12.00
Mkt Cap : USD1,609m
Pg2
Sound Global continued to expand in Dec 2014 by securing more new
projects. Our DCF-based TP implies a FY15F PE of 19x, slightly above the
HK-listed waste water sector average of 18x.
Analyst: Laurent Wong ([email protected])
Puncak Niaga (PNH MK)
Utilities - Water
TRADING BUY MYR2.93 TP: MYR4.01
Mkt Cap : USD343m
Pg3
Islamic Equity Focus
Pg4
Thailand
Krung Thai Bank (KTB TB)
Banks
BUY THB22.1 TP: THB26.0
See important disclosures at the end of this report
Recurring net profit growth (%) 1.6 0.4 33.0 42.6 44.9
We are shifting our shariah-compliant portfolio from Malaysian to Chinese
Recurring
0.33 0.40
0.50
0.67 and have also included three
equities in EPS
light (CNY)
of the 0.33
changing
macro
picture
property stocks (Shimao, Ananda, Matrix Concepts) in light of the low
Recurring P/E (x) 20.0 19.9 16.6 13.3 10.0
interest rate environment.
P/B (x) 3.26
2.80 2.29
1.70 1.45 CFA ([email protected])
Analyst:
Athaporn
Arayasantiparb,
P/CF (x) na na na na 212
Other Key Stories
Hong Kong
Petro-King Oilfield Services (2178 HK)
Oil & Gas Services
NEUTRAL HKD1.21 TP: HKD1.22
Forecasts and Valuations Dec-12 Dec-13 Dec-14F Dec-15F Dec-16F
Puncak’s EGM to decide on the proposed disposal of its water assets and
operations
is set
to be 2,652
held later
today.
advise
existing shareholders to
Total turnover
(CNYm)
3,140
3,868We
5,046
6,039
vote for the proposal. Maintain TRADING BUY with our SOP-based TP
Reported
net
(CNYm)
428 423
575 820 1,188
unchanged
atprofit
MYR4.01
(+38.3%
upside).
RecurringKong
net profit
430 432 575 820 1,188
Analyst:
Heng(CNYm)
Siong ([email protected]
Pg5
Bleaker Outlook Already Priced In
Analyst: Charles Zhang ([email protected])
Pg6
Expect Slight Beat Of 4Q14 Earnings Estimate
Analyst: Fiona Leong ([email protected])
Powered by EFATM Platform
1
Company Update, 7 January 2015
Buy (Maintained)
Industrial - Environment Control
Market Cap: USD1,609m
Target Price:
Price:
HKD12.00
HKD8.32
Macro
Risks
Expansion On Track
Growth
Value
Price Close




What's new?
Relative to Hang Seng Index (RHS)

10.20
9.20
187
8.20
167
7.20
147
6.20
127
5.20
107
4.20
25
87
20

Further expansion in Dec 2014. Sound Global secured three more
build-operate-transfer (BOT) projects in Dec 2014, with total daily
capacity of 110,000 tonnes (3% of its estimated daily capacity as at endFY14). The projects include municipal/rural waste water treatment and
water supply. Two projects (100,000 tonnes) were secured via merger
and acquisition (M&A), and one (10,000 tonnes) via greenfield bidding.
The projects are located in Sichuan, Shandong and Guangdong. Total
investment is about CNY247m.
New projects secured in 2014 up 151% YoY. Total BOT projects
secured in 2014 reached 1.43m tonnes, up 151% YoY. Around 51% was
secured via M&As.
Our view
15

Nov-14
Sep-14
Jul-14
May-14
Mar-14
5
Jan-14
Vol m
10

Source: Bloomberg
Avg Turnover (HKD/USD)
Cons. Upside (%)
Upside (%)
52-wk Price low/high (HKD)
Free float (%)
Share outstanding (m)
Shareholders (%)
31.2m/4.02m
29.8
44.2
4.72 - 9.12
31
1,500
Wen Yibo
CCB
IFC
50.3
11.2
7.7
Share Performance (%)

Guidance for 2015 likely achievable. Sound Global expanded rapidly
in 2014 after its financial bottleneck was resolved. We believe
management’s guidance of 1.2m-1.5m tonnes for 2015 is likely
achievable. Sound Global is discussing with German Development Bank
(KfW) for possible offshore loans financing.
"Water Plan" the near-term catalyst. The Water Pollution Prevention
and Treatment Plan ("Water Plan"), which reportedly will set aside
CNY2.0trn in 2013-2017 for water projects, 45% above the 12th 5-Year
Plan’s, has yet to be announced. However, we believe it is just a matter
of time before the plan is confirmed and it could be a strong near-term
catalyst for the water treatment sector, benefitting companies like Sound
Global.
Maintain BUY and HKD12.00 TP (44% upside). Our DCF-based TP of
HKD12.00 implies a FY15F P/E of 19x (13x currently), slightly above the
HK-listed waste water sector average of 18x. We expect Sound Global to
deliver a 3-year recurring EPS CAGR of 26%, slightly ahead of the HKlisted sector’s 22%. Its capacity expansion accelerated since its financial
bottleneck was resolved in 4Q13 via the issue of offshore loans.
YTD
1m
3m
6m
12m
Absolute
(7.4)
7.6
6.1
3.5
89.5
Forecasts and Valuations
Relative
(8.5)
8.2
2.7
2.2
84.9
Total turnover (CNYm)
Shariah compliant
Dec-12
Dec-13
2,652
3,140
Dec-14F Dec-15F Dec-16F
3,868
5,046
6,039
Reported net profit (CNYm)
428
423
575
820
1,188
Recurring net profit (CNYm)
430
432
575
820
1,188
Recurring net profit growth (%)
1.6
0.4
33.0
42.6
44.9
Laurent Wong +852 2103 9432
Recurring EPS (CNY)
0.33
0.33
0.40
0.50
0.67
[email protected]
Recurring P/E (x)
20.0
19.9
16.6
13.3
10.0
P/B (x)
3.26
2.80
2.29
1.70
1.45
P/CF (x)
na
na
na
na
212
EV/EBITDA (x)
12.4
10.1
10.4
10.2
8.8
Return on average equity (%)
17.3
14.8
15.5
14.4
15.7
3.6
36.5
62.7
66.6
3.7
(0.4)
0.3
Net debt to equity (%)
Our vs consensus EPS (adjusted) (%)
net cash
Source: Company data, RHB
2


3

.
2
0
.
2
0
0
.
2
0
0
.
0
0
0
Trading Buy (Maintained)
Utilities - Water
Market Cap: USD343m
Target Price:
Price:
MYR4.01
MYR2.93
Macro
Risks
Putting An End To The Water Saga
Growth
Value
Price Close
Relative to FTSE Bursa Malaysia KLCI Index (RHS)
3.90
113
3.70
109
3.50
104
3.30
100
3.10
95
2.90
91
2.70
86
2.50
82
2.30
77
2.10
12
73
0
0
.
2
0
Puncak’s EGM to decide on the proposed disposal of its water assets 0
.
and operations is set to be held later today. Maintain TRADING BUY 0
0
with our SOP-based TP unchanged at MYR4.01 (36.9% upside). We 0
continue to advise existing shareholders to vote for the proposal and
walk away with total net proceeds of MYR1.56bn. Management remains
committed to announcing a special DPS of at least MYR1.00.

10
8
6

Nov-14
Sep-14
Jul-14
May-14
Mar-14
2
Jan-14
Vol m
4
Source: Bloomberg
Avg Turnover (MYR/USD)
Cons. Upside (%)
Upside (%)
52-wk Price low/high (MYR)
Free float (%)
Shareholders (%)
3.18m/0.93m
32.8
36.9
2.32 - 3.71
49
414
Tan Sri Rozali Ismail
Lembaga Tabung Haji
40.9
9.7
YTD
1m
3m
6m
12m
Absolute
(1.0)
8.9
(12.0)
(12.8)
(12.0)
Relative
(0.5)
8.7
(7.2)
(5.8)
(7.8)
Shariah compliant
Kong Heng Siong +603 9207 7666
[email protected]


1

.
2
0
.
1






Salient details. To recap, Puncak Niaga (Puncak) agreed in Nov 2014
to sell its 100% stake in Puncak Niaga SB and 70% stake in Syarikat
Bekalan Air Selangor SB (Syabas) to Kumpulan Darul Ehsan Bhd for a
total cash consideration of MYR1.56bn. Its EGM to decide on the
proposed disposal of its water assets and operations is set to be held
later today, with minimum 75% approval required from its shareholders
for the disposal exercise to proceed. We note that Puncak’s single
largest shareholder Tan Sri Rozali Ismail – with an effective stake of
40.9% – has given his undertaking to support the proposed disposal. We
continue to advise investors to vote for the proposed disposal to put an
end to the much-delayed saga after six years of protracted negotiations.
Completion by January. According to the circular, the entire exercise
will be completed by as soon as mid-Jan 2015. Upon completion,
management remains committed to announcing a special DPS of at least
MYR1.00. This could potentially translate into a total cash payout of
MYR411.7m based on its outstanding share base (excluding treasury
shares).
O&G play post-disposal. Upon completion of the disposal, Puncak will
be a pure oil and gas (O&G) play via its 100%-owned subsidiary in
Puncak Oil & Gas SB, which owns a derrick lay barge. The group has
secured Package B of the Pan Malaysia integrated offshore installation
contract worth MYR1.8bn over a 3-year period from 2014 to 2016.
Maintain TRADING BUY. All in, we maintain our TRADING BUY call
with our fully-diluted SOP-based TP unchanged at MYR4.01. Share price
has recovered by some 25% over the past three weeks after having
retraced from a high of MYR3.71 in tandem with weakness in local equity
market over the last two months. That said, we see potential for further
upside as we do not discount the possibility of a further dividend windfall
to better reward shareholders amidst current market volatility.
Dec-12
Dec-13
Dec-14F
Dec-15F
Dec-16F
3,744
1,147
1,044
1,435
1,492
Reported net profit (MYRm)
238
201
221
264
273
Recurring net profit (MYRm)
238
201
221
264
273
2302.2
(15.6)
10.0
19.5
3.5
Recurring EPS (MYR)
0.58
0.49
0.54
0.64
0.66
DPS (MYR)
0.05
0.05
0.06
0.07
0.07
Recurring P/E (x)
5.06
5.99
5.45
4.56
4.41
P/B (x)
2.38
0.68
0.61
0.55
0.49
P/CF (x)
5.57
5.52
4.56
4.41
2.5
Total turnover (MYRm)
na
Dividend Yield (%)
1.7
1.8
2.0
2.4
EV/EBITDA (x)
5.7
15.9
8.8
6.6
5.8
61.1
17.6
11.8
12.6
11.7
net cash
78.2
62.4
46.9
34.0
(2.1)
(19.4)
(39.0)
3
Strategy, 7 January 2015
Islamic Equity Focus
Macro
Risks
Back to China
Growth
Value


2

2

2




1
P/E band chart for FTSE Shariah Asia 100
From 9 Dec to 30 Dec, our shariah-compliant portfolio dropped 2.0% in
value, which is roughly in line with the benchmark FTSE Shariah Asia
100. In this upcoming period, we shift some of our exposure from
Malaysian to Chinese equities in light of the oil price decline and
include several beneficiaries of the low interest rate environment.

Source: Bloomberg
P/E band chart for MSCI Asia


Source: Bloomberg
P/E band chart for FBM KLCI

Roughly in line. Our shariah-compliant portfolio largely tracked the
benchmark during much of Dec 2014. The best performer was Westports
(WPRTS MK, BUY, TP: MYR3.3), but many beneficiaries of the strong
USD that were based in Malaysia also did not perform as well as
expected, due to the general market weakness in Malaysian equities. In
light of this, we are reducing our exposure to Malaysian equities and
introducing two new Chinese picks into our portfolio.
Low interest rates. The global macroeconomic environment is currently
conducive for low interest rates. China recently cut interest rates in Dec
2014. Even in Singapore, we believe any interest rate hike would be very
mild. Hence, we have included several defensive counters from the
telecom sector as well as property and construction stocks. In general,
property stocks benefit from improved affordability for housing, while new
housing starts, in turn, improve the investor sentiment on contractors.
Positives in China. In the near term, China would benefit from the end
of Occupy Central, the recent interest rate cut and increased awareness
on the Shanghai-HK Stock Connect which took effect in Nov 2014.
Chinese consumers should also benefit more than ASEAN consumers
from low oil prices, because China did not implement direct diesel
subsidies. Hence, the country is not using the low oil prices as an
opportunity to remove or reduce these subsidies, as many ASEAN
nations are doing.
Some relief for Indonesia. Although we remain cautious on Indonesia,
the political situation is slowly improving after the United Development
Party defected over to the government coalition. In light of this, we have
added AKR Corporindo (AKRA IJ, BUY, TP: IDR5,650) to our portfolio.
Stock Highlights
Com pany Nam e
Source: Bloomberg
Price
Target
P/E (x)
P/B (x)
Yield (%)
Dec-15F
Dec-15F
Dec-15F
Rating
AKR Corporindo
IDR4,120
IDR5,650
15.1
2.5
2.0
BUY
Ananda Development
THB3.28
THB3.70
8.9
1.3
2.3
BUY
Bossini
HKD0.63
HKD1.01
6.1
1.1
8.2
BUY
M1
SGD3.61
SGD4.40
17.0
8.2
5.8
BUY
Matrix Concepts Holdings
MYR2.70
MYR3.00
6.7
1.6
5.9
BUY
Shimao Property
HKD17.34
HKD20.30
5.0
0.9
6.0
BUY
Ta Ann Holdings
MYR3.88
MYR4.40
12.4
1.3
2.6
BUY
IDR930
IDR1,000
11.0
2.6
3.2
BUY
HKD3.11
HKD4.10
6.1
1.0
5.8
BUY
THB11.50
THB14.00
15.3
2.3
1.3
BUY
Athaporn Arayasantiparb, CFA +65 6232 3884
Tiphone Mobile Indonesia Tbk PT
[email protected]
Truly International Holdings
Unique Engineering & Construction
4
Energy & Petrochemicals - Oil & Gas Services
Market Cap: USD169m
Neutral (Maintained)
Target Price:
Price:
HKD1.22
HKD1.21
Macro
Risks
Bleaker Outlook Already Priced In
Growth
Value
Relative to Hang Seng Index (RHS)
132
5.10
120
3.60
84
3.10
72
2.60
60
2.10
48
1.60
36
1.10
24
0.60
18
16
14
12
10
8
6
4
2
12
Jul-14
May-14
Nov-14
96
Sep-14
108
4.10
Mar-14
4.60
Jan-14
Vol m
Price Close
5.60
0
0
.
2
0
0
On 24 Dec, Petro-King issued a profit warning and proposed a rights .
0
offer to raise HKD151m. We see the profit warning as a negative 0
surprise and slash our FY14-16 earnings forecasts. We cut our TP to 0
HKD1.22 (0.7x FY15F P/BV, 0.8% upside). Maintain NEUTRAL as we
believe the negatives have been priced in, with its share price having
dropped 9% since the announcement.



Source: Bloomberg
Avg Turnover (HKD/USD)
Cons. Upside (%)
Upside (%)
52-wk Price low/high (HKD)
Free float (%)
Shareholders (%)
Termbary Natural Resources
Co. LTD
King Shine Group
TCL Corp
2.43m/0.31m
50.4
0.8
1.08 - 4.94
30
1,080

31.5
31.4
6.9
YTD
1m
3m
6m
12m
Absolute
12.0
(16.0)
(46.9)
(46.9)
(70.9)
Relative
12.0
(14.3)
(49.2)
(47.1)
(74.4)


2

.
1
0
.
2





Profit warning a negative surprise. Based on unaudited accounts and
confirmed orders and contracts for 2014, Petro-King Oilfield Services
(Petro-King) expects to record a net loss for FY14. This came as a
negative surprise as it is much worse than our original recurring net profit
forecasts of HKD135m (-34% YoY) for FY14 and HKD114m (-14% YoY)
for 2H14.
Rights offer raises concern over cash flow. On the same day, PetroKing proposed to raise HKD151m through a rights offer at HKD0.98 per
share on the basis of one rights share for every seven existing shares.
Upon completion of the rights issue, share capital will be enlarged by
about 14%. We believe the rights offer is primarily driven by Petro-King’s
tight cash flow position and negative outlook for operation in FY15.
Share price rally on oil industry ownership reform. On 5 Jan, shares
of oilfield service providers including Petro-King rallied by 7-13%,
stimulated by news reports that China National Petroleum
Corporation (CNPC) has kicked off a mixed-ownership reform in Xinjiang.
It is expected that there will be more bold reform actions in 2015 to
encourage private capital to participate in upstream exploration and
production (E&P) operations, which may revive investments in the field.
Gloomy earnings outlook. We believe Petro-King’s operation has been
severely challenged by a tough operating environment in both domestic
and overseas markets. We now see a loss of HKD35m for 2H14 and a
loss of HKD15m for FY14. For FY15, we expect a limited recovery with a
net profit of HKD30m.
Maintain NEUTRAL, lower TP to HKD1.22. We change our valuation to
P/BV from P/E-based, given the company’s highly volatile earnings. We
cut our TP to HKD1.22, based on 0.7x FY15F P/BV, 2SD below its
forward P/BV mean. Our previous TP of HKD2.10 was based on a 12x
FY15F P/E. As its share price has dropped 9% since the announcement,
we believe the negatives have been priced in. Maintain NEUTRAL.
Forecasts and Valuations
Dec-12
Dec-13
Dec-14F
Dec-15F
Dec-16F
1,057
1,060
867
1,014
1,141
Reported net profit (HKDm)
180
207
(22)
30
57
Recurring net profit (HKDm)
149
205
(15)
30
69.8
37.8
(107.1)
Charles Zhang +852 2103 5842
Recurring EPS (HKD)
0.20
0.21
(0.01)
[email protected]
Recurring P/E (x)
6.1
5.8
P/B (x)
0.86
0.59
P/CF (x)
6.91
Shariah compliant
Total turnover (HKDm)
EV/EBITDA (x)
na
0.62
na
0.87
na
57
88.5
0.02
0.05
49.6
26.3
0.69
0.68
na
0.99
4.4
3.3
(3.2)
13.0
17.7
12.7
(1.0)
1.4
1.8
2.5
net cash
net cash
4.8
net cash
(111.5)
(84.2)
(72.5)
2.6
5
Krung Thai Bank (KTB TB)
Buy (Maintained)
Financial Services - Banks
Market Cap: USD9,365m
Target Price:
Price:
THB26.00
THB22.10
Macro
Risks
Expect Slight Beat Of 4Q14 Earnings Estimate
Growth
Value
Krung Thai Bank Plc (KTB TB)
Relative to Stock Exchange of Thailand Index (RHS)
124
22.0
118
20.0
113
18.0
107
16.0
101
14.0
180
160
140
120
100
80
60
40
20
95
Sep-14
Jul-14


Source: Bloomberg
Avg Turnover (THB/USD)
Cons. Upside (%)
Upside (%)
52-wk Price low/high (THB)
Free float (%)
Shareholders (%)
Financial Institution
Development Fund
State Street Bank Europe Ltd
791m/24.2m
17.6
17.7
15.8 - 24.4
45
13,976


55.1
4.8
Thai NVDR
4.7
YTD
1m
3m
6m
12m
Absolute
(2.7)
(8.3)
(6.8)
0.9
41.7
Relative
(2.7)
(2.0)
(2.2)
0.8
19.4
Shariah compliant

Loan growth gained momentum in 4Q14. Krung Thai Bank (KTB)
recorded net loan growth of 8.1% YTD (bank level) for 11M14,
translating into annualised growth of 8.8%. This is an acceleration from
the 5.9% annualised growth achieved for 9M14 and is ahead of
management’s targeted 2014 loan growth of 5-7%.
Deposits surged 13.2% in two months. Deposits jumped 13.2%,
between Sep and Nov 2014, lifting YTD growth to 14.4% for 11M14
(9M14: +1% YTD). Management attributed the strong growth to the
bank’s successful deposit campaigns. This lowered its loan-to-deposit
ratio (LDR) to 83% in Nov 2014 (Sep 2014: 94.6%). To ensure that the
improved liquidity does not become a drag on net interest margin (NIM),
management intends to: i) reduce the bank’s interbank borrowings, and
ii) boost loan growth via increased working capital loans to the small and
medium-sized enterprise (SME) segment and expansion of its retail
customer base. Management believes KTB’s LDR will rise to the low90% in 2015.
Fee income to be flat in 4Q14. Management guided that fee income will
be similar to the THB6.90bn (-4% QoQ) achieved in 3Q14. Management
attributed the still-weak fee income trend to the country’s sluggish
economic conditions.
Non-performing loans (NPLs) stabilising. NPLs, which rose 8% QoQ
in 3Q14, have started to stabilise in 4Q14. Still, management indicated
that 4Q14 provision charges will likely be similar to the THB2.82bn
booked in 3Q14.
4Q14 net profit likely to be beat our forecast, albeit slightly. Our
projected FY14 net profit of THB32.83bn implies 4Q14 earnings of
THB7.66bn (-18% QoQ). We believe KTB will likely post net profit that
will be slightly higher than our estimates, given our more conservative
assumption on provision charges.
Dec-12
Dec-13
Dec-14F
Dec-15F
Dec-16F
Net interest income (THBm)
58,122
64,481
69,257
74,306
80,530
Reported net profit (THBm)
23,366
33,929
32,832
38,438
43,510
37.4
45.2
(3.2)
17.1
13.2
23,366
33,929
32,832
38,438
43,510
Recurring EPS (THB)
1.97
2.43
2.35
2.75
3.11
DPS (THB)
0.73
0.88
0.95
1.12
1.20
Recurring P/E (x)
11.2
9.1
9.4
8.0
7.1
P/B (x)
1.69
1.50
1.35
1.23
1.11
Net profit growth (%)
Fiona Leong +603 9207 7638
[email protected]
Recurring net profit (THBm)
Dividend Yield (%)
3.3
4.0
4.3
5.1
5.4
14.9
17.4
15.1
16.0
16.4
Return on average assets (%)
1.1
1.4
1.3
1.4
1.4
(1.8)
2.5
2.3


2

.
2
0
.
3
0
0
.
2
0
0
For the soon-to-be released 4Q14 results, we expect KTB to report .
0
healthy loan growth, a surge in deposits, stable provision charges but 0
flattish non-interest income. Maintain BUY and THB26.00 TP (17.7% 0
upside), valuing stock at 1.4x FY15 P/BV. We believe KTB would likely
beat our 4Q14F earnings of THB7.66bn, albeit slightly, given our more
conservative assumption on provision charges.
Nov-14
24.0
May-14
130
Mar-14
26.0
Jan-14
Vol m
Price Close




6
RHB Guide to Investment Ratings
Buy: Share price may exceed 10% over the next 12 months
Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain
Neutral: Share price may fall within the range of +/- 10% over the next 12 months
Take Profit: Target price has been attained. Look to accumulate at lower levels
Sell: Share price may fall by more than 10% over the next 12 months
Not Rated: Stock is not within regular research coverage
Disclosure & Disclaimer
All research is based on material compiled from data considered to be reliable at the time of writing, but RHB does not make any representation or
warranty, express or implied, as to its accuracy, completeness or correctness. No part of this report is to be construed as an offer or solicitation of an offer
to transact any securities or financial instruments whether referred to herein or otherwise. This report is general in nature and has been prepared for
information purposes only. It is intended for circulation to the clients of RHB and its related companies. Any recommendation contained in this report does
not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This report is for the
information of addressees only and is not to be taken in substitution for the exercise of judgment by addressees, who should obtain separate legal or
financial advice to independently evaluate the particular investments and strategies.
This report may further consist of, whether in whole or in part, summaries, research, compilations, extracts or analysis that has been prepared by RHB’s
strategic, joint venture and/or business partners. No representation or warranty (express or implied) is given as to the accuracy or completeness of such
information and accordingly investors should make their own informed decisions before relying on the same.
RHB, its affiliates and related companies, their respective directors, associates, connected parties and/or employees may own or have positions in
securities of the company(ies) covered in this research report or any securities related thereto, and may from time to time add to, or dispose off, or may be
materially interested in any such securities. Further, RHB, its affiliates and related companies do and seek to do business with the company(ies) covered
in this research report and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies),
may sell them or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory or
underwriting services for or relating to such company(ies), as well as solicit such investment, advisory or other services from any entity mentioned in this
research report.
RHB and its employees and/or agents do not accept any liability, be it directly, indirectly or consequential losses, loss of profits or damages that may arise
from any reliance based on this report or further communication given in relation to this report, including where such losses, loss of profits or damages are
alleged to have arisen due to the contents of such report or communication being perceived as defamatory in nature.
The term “RHB” shall denote where applicable, the relevant entity distributing the report in the particular jurisdiction mentioned specifically herein below
and shall refer to RHB Research Institute Sdn Bhd, its holding company, affiliates, subsidiaries and related companies.
All Rights Reserved. This report is for the use of intended recipients only and may not be reproduced, distributed or published for any purpose without prior
consent of RHB and RHB accepts no liability whatsoever for the actions of third parties in this respect.
Malaysia
This report is published and distributed in Malaysia by RHB Research Institute Sdn Bhd (233327-M), Level 11, Tower One, RHB Centre, Jalan Tun Razak,
50400 Kuala Lumpur, a wholly-owned subsidiary of RHB Investment Bank Berhad (RHBIB), which in turn is a wholly-owned subsidiary of RHB Capital
Berhad.
Singapore
This report is published and distributed in Singapore by DMG & Partners Research Pte Ltd (Reg. No. 200808705N), a wholly-owned subsidiary of DMG &
Partners Securities Pte Ltd, a joint venture between Deutsche Asia Pacific Holdings Pte Ltd (a subsidiary of Deutsche Bank Group) and OSK Investment
Bank Berhad, Malaysia which have since merged into RHB Investment Bank Berhad (the merged entity is referred to as “RHBIB”, which in turn is a whollyowned subsidiary of RHB Capital Berhad). DMG & Partners Securities Pte Ltd is a Member of the Singapore Exchange Securities Trading Limited. DMG &
Partners Securities Pte Ltd may have received compensation from the company covered in this report for its corporate finance or its dealing activities; this
report is therefore classified as a non-independent report.
As of 28 6 January 2015May 2014, DMG & Partners Securities Pte Ltd and its subsidiaries, including DMG & Partners Research Pte Ltd do not have
proprietary positions in the securities covered in this report, except for:
a)
-As of 28 6 January 2015May 2014, none of the analysts who covered the securities in this report has an interest in such securities, except for:
a)
-Special Distribution by RHB
Where the research report is produced by an RHB entity (excluding DMG & Partners Research Pte Ltd) and distributed in Singapore, it is only distributed
to "Institutional Investors", "Expert Investors" or "Accredited Investors" as defined in the Securities and Futures Act, CAP. 289 of Singapore. If you are not
an "Institutional Investor", "Expert Investor" or "Accredited Investor", this research report is not intended for you and you should disregard this research
report in its entirety. In respect of any matters arising from, or in connection with this research report, you are to contact our Singapore Office, DMG &
Partners Securities Pte Ltd
Hong Kong
This report is published and distributed in Hong Kong by RHB OSK Securities Hong Kong Limited (“RHBSHK”) (formerly known as OSK Securities Hong
7
Kong Limited), a subsidiary of OSK Investment Bank Berhad, Malaysia which have since merged into RHB Investment Bank Berhad (the merged entity is
referred to as “RHBIB”), which in turn is a wholly-owned subsidiary of RHB Capital Berhad.
RHBSHK, RHBIB and/or other affiliates may beneficially own a total of 1% or more of any class of common equity securities of the subject company.
RHBSHK, RHBIB and/or other affiliates may, within the past 12 months, have received compensation and/or within the next 3 months seek to obtain
compensation for investment banking services from the subject company.
Risk Disclosure Statements
The prices of securities fluctuate, sometimes dramatically. The price of a security may move up or down, and may become valueless. It is as likely that
losses will be incurred rather than profit made as a result of buying and selling securities. Past performance is not a guide to future performance. RHBSHK
does not maintain a predetermined schedule for publication of research and will not necessarily update this report
Indonesia
This report is published and distributed in Indonesia by PT RHB OSK Securities Indonesia (formerly known as PT OSK Nusadana Securities Indonesia), a
subsidiary of OSK Investment Bank Berhad, Malaysia, which have since merged into RHB Investment Bank Berhad, which in turn is a wholly-owned
subsidiary of RHB Capital Berhad.
Thailand
This report is published and distributed in Thailand by RHB OSK Securities (Thailand) PCL (formerly known as OSK Securities (Thailand) PCL), a
subsidiary of OSK Investment Bank Berhad, Malaysia, which have since merged into RHB Investment Bank Berhad, which in turn is a wholly-owned
subsidiary of RHB Capital Berhad.
Other Jurisdictions
In any other jurisdictions, this report is intended to be distributed to qualified, accredited and professional investors, in compliance with the law and
regulations of the jurisdictions.
DMG & Partners Research Guide to Investment Ratings
Kuala Lumpur
Hong Kong
Singapore
Malaysia
Tel : +(60) 3 9280 2185
Fax : +(60) 3 9284 8693
19 Des Voeux Road
Central, Hong Kong
Tel : +(852) 2525 1118
Fax : +(852) 2810 0908
Tel : +(65) 6533 1818
Fax : +(65) 6532 6211
Buy: Share price may exceed 10% over the next 12 months
Trading Buy:Malaysia
Share price
may exceed 15% over theRHB
nextOSK
3 months,
however longer-term outlook remains uncertain
Research Office
Securities Hong Kong Ltd. (formerly known
DMG & Partners
Neutral: Share
mayInstitute
fall within
months
as 12
OSK
Securities
Securities Pte. Ltd.
RHB price
Research
Sdn the
Bhdrange of +/- 10% over the next
Take Profit:
Target
price
has
been
attained.
Look
to
accumulate
at
lower
levels
Hong Kong Ltd.)
Level 11, Tower One, RHB Centre
10 Collyer Quay
Sell: Share price may
more than 10% over the next 12 months
Jalanfall
TunbyRazak
12th Floor
#09-08 Ocean Financial Centre
Lumpur
World-Wide House
Singapore 049315
Not Rated: Stock isKuala
not within
regular research coverage
DISCLAIMERS
Phnom
Penh
This research is issuedJakarta
by DMG & Partners Research Pte Ltd and it is forShanghai
general distribution only. It does not have any regard
to the
specific investment
objectives, financial situation and particular needs of any specific recipient of this research report. You should independently evaluate particular
PT RHB OSK and
Securities
Indonesia
(formerlyfinancial
known asadviser
RHB
OSK (China)
Advisory
Ltd. into any
RHBtransaction
OSK Indochina
Securities
Limited
(formerly
investments
consult
an independent
before
makingInvestment
any investments
or Co.
entering
in relation
to any
securities
or
PT OSKmentioned
Nusadana in this report.
(formerly known as OSK (China) Investment
known as OSK Indochina Securities Limited)
investment instruments
Securities Indonesia)
Plaza CIMB Niaga
Advisory Co. Ltd.)
Suite 4005, CITIC Square
No. 1-3, Street 271
Sangkat Toeuk Thla, Khan Sen Sok
Tel : +(6221) 2598 6888
Tel : +(8621) 6288 9611
Fax: +(855) 23 969 171
The information contained
herein has been obtained from sources 1168
we believed
to be reliable but we do not make any representation
or warranty nor
14th Floor
Nanjing West Road
Phnom Penh
accept any responsibility
or liability
as to its accuracy, completeness orShanghai
correctness.
are subject to change
Jl. Jend. Sudirman
Kav.25
20041Opinions and views expressed in this report
Cambodia
without notice.
Jakarta Selatan 12920, Indonesia
China
Tel: +(855) 23 969 161
Fax
: +(6221)
2598or6777
Faxof: +(8621)
6288
9633or sell any securities.
This report does
not
constitute
form part of any offer or solicitation
any offer
to buy
Bangkok
DMG & Partners Research Pte Ltd is a wholly-owned subsidiary of DMG & Partners Securities Pte Ltd, a joint venture between OSK Investment Bank
Berhad, Malaysia which have since merged into RHBRHB
Investment
Bank Berhad (the merged entity is referred to as “RHBIB” which in turn is a whollyOSK Securities (Thailand) PCL (formerly known
owned subsidiary of RHB Capital Berhad) and Deutsche Asiaas
Pacific
Holdings Pte
Ltd (a PCL)
subsidiary of Deutsche Bank Group). DMG & Partners Securities
OSK Securities
(Thailand)
Pte Ltd is a Member of the Singapore Exchange Securities Trading
Limited.
10th Floor,
Sathorn Square Office Tower
98, North Sathorn Road,Silom
Bangkok 10500
DMG & Partners Securities Pte Ltd and their associates, directors,Bangrak,
and/or employees
may have positions in, and may effect transactions in the securities
Thailand
covered in the report, and may also perform or seek to perform broking and
other corporate finance related services for the corporations whose securities
Tel: +(66) 2 862report.
9999
are covered in the report. This report is therefore classified as a non-independent
Fax : +(66) 2 108 0999
As of 6 January 2015, DMG & Partners Securities Pte Ltd and its subsidiaries, including DMG & Partners Research Pte Ltd, do not have proprietary
positions in the subject companies, except for:
a)
As of 6 January 2015, none of the analysts who covered the stock in this report has an interest in the subject companies covered in this report, except for:
a)
DMG & Partners Research Pte. Ltd. (Reg. No. 200808705N)
8

Regional Daily Ideas Troika

Transcription

Similar documents

Sembcorp Marine Buy

OUE Hospitality Trust Neutral Potential Competition From Hotel Jen

Ezion Holdings Buy

Vard Holdings Sell