Regional Daily Ideas Troika

Transcription

Regional Daily, 8 January 2015
5
Regional Daily
Ideas Troika
Top Stories
Kasikornbank (KBANK TB)
Financial Services - Banks
Buy THB218.00 TP: THB264.20
Mkt Cap: USD15,863m
Pg2
KBank expects to report for 4Q14 healthy loan growth as well as stable NIM
and credit costs. Maintain BUY and THB264.20 TP. Management made no
changes to its 2015 targets despite concerns of a prolonged economic
downturn.
Analyst: Fiona Leong (fiona.leong@rhbgroup.com)
Bangkok Bank (BBL TB)
Buy THB192.00TP: THB220.00
Market Cap: USD11,114m
Mkt Cap: USD11,114m
Pg3
We expect BBL to report for 4Q14 a sequential pickup in loan and deposit
growth, slightly higher-than-expected provision charges and a 10bps drop in
net interest margin. Maintain BUY and THB220.00 TP (15% upside).
Analyst: Fiona Leong (fiona.leong@rhbgroup.com)
Strategy - Thailand
Pg4
The ten tycoons profiled in this report control listed assets worth USD80bn or
18% of the Thai equities market. Generally, the more focussed groups such
as Pruksa (property) and BGH (healthcare) outperformed the larger, more
diversified groups such as Central, CP, and TCC (Thai Bev) Groups.
Analyst: Athaporn Arayasantiparb (athaporn@sg.oskgroup.com)
Pg5
Vote Of Confidence By Leading Venture Capital Firms.
Other Key Stories
Hong Kong
NetDragon (777 HK)
Technology - Software & Services
HKD13.38
Neutral HKD14.52 TP: HKD13.38
Malaysia
CARiNG Pharmacy (CARING MK)
Consumer Non-cyclical - Healthcare
Neutral MYR1.19 TP: MYR1.27
Analyst: Yujie Li (li.yu.jie@rhbgroup.com)
0
Pg6
Moving Forward With Care
2
2
Analyst: Alexander Chia (alexander.chia@rhbgroup.com)
.
.
0
0
0
0
2
2
.
.
0
0
0
0
See important disclosures at the end of this report
Powered by EFATM Platform
1
Company Update, 6 January 2015
Krung Thai Bank (KTB TB)
Buy (Maintained)
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 (%)
Share outstanding (m)
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
Share Performance (%)
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.
Forecasts and Valuations
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
fiona.leong@rhbgroup.com
Recurring net profit (THBm)
Dividend Yield (%)
3.3
4.0
4.3
5.1
5.4
Return on average equity (%)
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
Our vs consensus EPS (adjusted) (%)


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




Source: Company data, RHB
2
Results Preview and Company Update, 8 January 2015
Buy (Maintained)
Target Price:
Price:
THB220.00
THB192.00
Macro
Risks
Ending 2014 On a Stronger Note
Growth
Value
Price Close
Relative to Stock Exchange of Thailand Index (RHS)
220
102
210
99
200
96
190
93
180
90
170
87
160
30
84
20

15

Nov-14
Sep-14
Jul-14
May-14
Mar-14
5
Jan-14
Vol m
10
Source: Bloomberg
Avg Turnover (THB/USD)
Cons. Upside (%)
Upside (%)
52-wk Price low/high (THB)
Free float (%)
Shareholders (%)
Thai NVDR
State Street Bank and Trust
Company
803m/24.6m
20.8
14.9
169 - 215
66
1,909


30.8
3.3

YTD
1m
3m
6m
Absolute
(1.3)
(4.0)
(2.8)
(2.8)
12m
7.6
Relative
0.1
3.5
1.2
(1.1)
(9.4)
Shariah compliant
Ending 2014 with 1-2% loan growth and... A seasonal pickup in loan
demand in 4Q would see BBL post loan growth of 1-2% for 2014 (Sep
2014: -0.6% YTD). Management expects loan growth to strengthen in
2016 and 2017 on a rebound in the economy and the rollout of
infrastructure projects. For 2015, BBL would focus on the small- and
medium-sized enterprise (SME) segment to mitigate weak loan demand
from large corporates and medium-sized companies.
…5-6% deposits growth. BBL went on an aggressive deposit
accumulation mode in 4Q14 that led to deposit growth of 5-6% for 2014
(9M14: -0.8% YTD), while loan-to-deposit ratio (LDR) improved to 8687% (Sep 2014: 90.7%).
But net interest margin (NIM) fell 10bps QoQ in 4Q14 on higher
interest expense arising from the deposit campaigns. The increased
marketing and promotional expenses would also see 2014 operating
expenses rise by c.12% YoY.
Fee income grew 2-3% QoQ in 4Q14 on higher sales of mutual funds
and bancassurance products, but loan-related and transactional fees
remained flattish. For 9M14, BBL saw a 1% YoY dip in net fees and
services income due largely to lower stock market volumes.
Provision expenses 6% higher than THB8.5bn guidance for 2014.
Extra provisions on the back of strong 4Q14 loan growth and the
restructuring of a corporate loan (which would be completed in 1Q15)
would see BBL close 2014 with provision charges of THB9.0bn.
Elsewhere, asset quality remains solid with gross non-performing loans
(NPL) ratio maintained at 3Q14’s level of 2.65%.
4Q14 earnings to meet expectations. Our projected FY14 net profit of
THB36.84bn implies 4Q14 earnings of THB9.27bn (-3% QoQ). We
expect 4Q14 net profit to fall within our estimate.
Dec-12
Dec-13
Dec-14F
Dec-15F
Dec-16F
Net interest income (THBm)
54,952
55,879
59,500
62,500
67,500
Reported net profit (THBm)
31,847
35,906
36,837
40,607
45,708
16.5
12.7
2.6
10.2
12.6
31,847
35,906
36,837
40,607
45,708
Recurring EPS (THB)
16.7
18.8
19.3
21.3
23.9
DPS (THB)
6.50
7.52
7.80
8.50
9.50
Recurring P/E (x)
11.5
10.2
9.9
9.0
8.0
P/B (x)
1.34
1.24
1.14
1.06
0.98
Net profit growth (%)
Fiona Leong +603 9207 7638
fiona.leong@rhbgroup.com
Recurring net profit (THBm)
Dividend Yield (%)
3.4
3.9
4.1
4.4
5.0
12.3
12.6
12.0
12.2
12.7
Return on average assets (%)
1.4
1.4
1.4
1.5
1.5
(0.2)
0.5
0.3


2

.
2
0
.
1
0
0
.
3
0
0
From management’s 4Q14 preview, we expect Bangkok Bank (BBL) to .
0
report a sequential pickup in loan and deposit growth, slightly higher- 0
than-expected provision charges and a 10bps drop in net interest 0
margin. Maintain BUY and THB220.00 TP (15% upside), which values
the stock at 1.2x FY15F P/BV (historical mean: 1.2x). At the current
price, BBL trades at undemanding 1.1x P/BV (-0.5SD historical mean).

25




3
Strategy, 8 January 2015
d
Strategy - Thailand
Overweight
Macro
Risks
The Ten Tycoons
Growth
Value
P/E band chart for SET index
Listed assets linked to Thailand’s ten richest families, based on our
selection criteria, are worth approximately USD80bn or 18% of the value
of the Thai stock market. By helping foreign investors learn more about
the quirks, strengths, and weaknesses of these influential business
groups, we aim to reduce a disadvantage they may face when investing
in Thailand, where local investors enjoy an obvious information
advantage.

Source: Bloomberg
P/E band chart for Central Pattana

Source: Bloomberg
P/E band chart for CP Foods
Source: Bloomberg
Unless otherwise mentioned, all share price data as at close on
26 December 2014

Ten tycoons of many stripes. We highlight ten of Thailand’s wealthiest
families who continue to have sizable exposure to equities market. While
consumer-related businesses (food & beverage, retailing) dominate the
list, there is also strong representation from other sectors such as
banking and healthcare. Two of Thailand’s top ten most valuable
companies, Bangkok Bank (BBL TB, BUY, TP: THB220.00) and CP All
(CPALL TB, TRADING BUY, TP: THB48.00), are still linked to these
business families.
Strategic focus pays off. Though the value of listed assets linked to
these business groups rose only 12% in 2014 (vs a gain of 15% for the
Thai equities market), it was largely skewed by the performance of two
large groups which controlled the CP Group and Thai Beverage (THBEV
SP, NR). Many business groups that focused on a narrower array of
businesses saw their wealth grow at a much greater pace than the
broader market. Apart from their strategies, we also look at their winning
corporate cultures and favourable market positions.
Family champions. In addition, we also highlight some BUY ideas
linked to the business families. Pruksa (PS TB, BUY, TP: THB43.00)
could benefit from the country’s lower interest rates given its leadership
in the low-end housing segment. Increasingly, there are signs that MK
Restaurants (M TB, BUY, TP: THB75.00) may see a turnaround in its
negative same-store sales growth (SSSG). Though Bangkok Bank may
not be our Top Pick in the sector, it does have some redeeming factors.
The bank’s high level of conservatism bolsters its balance sheet strength
during periods when credit risk may rise. Central Pattana (CPN TB, BUY,
TP: THB62.00) will benefit the most once the Chirathivat family – its
majority shareholder – is aggressively growing the retail business.
Central Pattana is a landlord, developing department stores for brands
like Central and Robinson Department Store (ROBINS TB, NEUTRAL,
TP: THB62.00) and also manages the rental space and shopping
centers within those same malls. We believe that their business model is
relatively defensive and financially sound.
Stock Highlights
Com pany Nam e
Athaporn Arayasantiparb, CFA, +65 6232 3884


1

1

1




Bangkok Bank
Price
Target
THB192.50 THB220.00
P/E (x)
P/B (x)
Yield (%)
Dec-15F
Dec-15F
Dec-15F
9.1
1.1
4.4
BUY
Central Pattana
THB44.50
THB62.00
24.2
4.1
Charoen Pokphand
THB27.25
THB34.00
14.0
1.7
2.0
BUY
MK Restaurants Group
THB57.50
THB75.00
19.4
3.8
4.1
BUY
Veena Naidu License No. 24418, 66 2862 9752
Pruksa Real Estate
THB27.75
THB43.00
8.4
1.8
3.6
BUY
veena.na@rhbgroup.com
Source: Company data, RHB. Date as of 26 Dec 2014.
athaporn@sg.oskgroup.com
-
Rating
BUY
4
1
Corporate News Flash, 8 January 2015
NetDragon (777 HK)
Neutral (Maintained)
Technology - Software & Services
Market Cap: USD936m
Target Price:
Price:
HKD13.38
HKD14.52
Macro
Risks
Vote Of Confidence By Leading Venture Capital Firms
Growth
Value
NetDragon (777 HK)
Relative to Hang Seng Index (RHS)
17.0
99
16.0
92
15.0
86
14.0
80
13.0
74
12.0
67
11.0
16
14
12
10
8
6
4
2
61
0
0
.
2
0
0
What’s new?
.
0
0
NetDragon (ND) announced on 6 Jan that its online education subsidiary, 0
BAE, issued preferred shares for a total consideration of USD52.5m
(HKD409.5m) to IDG Capital Partners (USD20m), Vertex Venture (a whollyowned subsidiary of Temasek Group) (USD10m), Alpha Animation (USD6m),
ND (USD10m) and others (USD6.5m). ND’s stock price went up 8.2%
yesterday on this announcement. Upon closing of this transaction, BAE is
70.16% owned by ND, 4.19% by IDG, 2.09% by Vertex, and 1.25% by Alpha
Animation, assuming full conversion of the preferred shares and all ordinary
shares are issued pursuant to the Share Award Scheme to staff and
consultants.
Our view:


Nov-14
Jul-14
Sep-14
105
May-14
111
18.0
Mar-14
19.0
Jan-14
Vol m
Price Close
Source: Bloomberg
Avg Turnover (HKD/USD)
Cons. Upside (%)
Upside (%)
52-wk Price low/high (HKD)
Free float (%)
Shareholders (%)
DJM Holdings
IDG
12.4m/1.48m
19.3
-7.9
11.8 - 18.4
38
500
49.4
11.9


2

.
2
0
.
2





This should be the largest transaction in China’s education space
over the last two years in terms of the amount of dollars raised and
implied valuation, according to our check through media reports. The
transaction valued BAE at USD477.5m. ND told us that it will consider
another round of fund raising in future but will maintain its controlling
status to the end.
Vote of confidence. We believe there are mainly three reasons for IDG
and Vertex to invest in BAE: i) they believe that China’s online education
market has huge potential, ii) as IDG and Vertex were both investors of
91Wireless which ND sold previously, they know ND’s chairman well and
trust his ability to build another successful platform business, iii) ND has
expertise and strength in building online platforms and is putting more
than half of its resources in its online education business. Alpha
Animation is a strategic investor of BAE as its animation solutions may
add value to ND’s online education products and platform.
Maintain NEUTRAL but keep a close watch. We maintain NEUTRAL
on ND as its online education business has not generated revenues in
scale yet. ND has pilot launched its online education device and is
making progress in content acquiring and partnership building. Our TP of
HKD13.38 (implying 7.9% downside) consists of HKD7.80/share for its
gaming business and HKD5.60/share for its cash. If we factor in the
online education business, ie add the value of ND’s 70.16% stake in
BAE based on the transaction implied value (USD477.5m for 100% of
BAE), our TP could be HKD18.40.
YTD
1m
3m
6m
12m
Absolute
6.3
16.7
7.1
(0.7)
(14.9)
Dec-12
Dec-13
Relative
5.8
17.9
5.8
(1.5)
(19.3)
Total turnover (CNYm)
826
885
934
1,024
1,115
Reported net profit (CNYm)
282
6,141
242
262
313
Recurring net profit (CNYm)
282
122
256
262
313
Recurring net profit growth (%)
68.9
(56.8)
109.8
2.6
19.1
Recurring EPS (CNY)
0.55
0.23
0.50
0.51
0.61
DPS (CNY)
0.22
0.32
0.33
0.36
0.43
Recurring P/E (x)
21.3
49.6
23.3
22.7
19.1
P/B (x)
4.24
1.28
1.24
1.22
1.19
P/CF (x)
10.0
74.6
19.4
17.9
14.9
1.9
2.8
2.9
3.1
3.7
EV/EBITDA (x)
14.0
8.5
8.8
8.2
5.9
19.5
204.4
5.2
5.4
6.4
Shariah compliant
Yujie Li +852 2103 5680
li.yu.jie@rhbgroup.com
Dividend Yield (%)
Net debt to equity (%)
Dec-14F Dec-15F Dec-16F
net cash net cash net cash net cash net cash
(20.3)
(27.7)
(21.1)
5
Company Update, 8 January 2015
CARiNG Pharmacy (CARING MK)
Neutral (from Sell)
Consumer Non-cyclical - Healthcare
Market Cap: USD72.8m
Target Price:
Price:
MYR1.27
MYR1.19
Macro
Risks
Moving Forward With Care
Growth
Value
Caring Pharmacy (CARING MK)
Relative to FTSE Bursa Malaysia KLCI Index (RHS)
107
1.90
99
1.70
90
1.50
82
1.30
73
1.10
65
0.90
5
5
4
4
3
3
2
2
1
1
56
Sep-14
May-14
0
0
.
2
0
0
We view Caring’s commitment to 10 new outlets in 2015 and increasing .
0
retail presence vis-à-vis its peers as positive for the long run. We 0
upgrade our call to NEUTRAL (from Sell) with an unchanged MYR1.27 0
TP (6.7% upside) pegged to 16x 2015F P/E. However, we reiterate our
cautious stance on the near-term outlook for this stock due to intense
competition and cost pressures.


Nov-14
2.10
Jul-14
116
Mar-14
2.30
Jan-14
Vol m
Price Close

Source: Bloomberg
Avg Turnover (MYR/USD)
Cons. Upside (%)
Upside (%)
52-wk Price low/high (MYR)
Free float (%)
Shareholders (%)
Motivasi Optima Sdn Bhd
Jitumaju Sdn Bhd
0.17m/0.05m
52.9
6.97
1.07 - 2.23
31
218
50.4
18.1
YTD
1m
3m
6m
12m
Absolute
0.0
0.8
(32.4)
(46.6)
(37.7)
Relative
1.4
1.5
(26.7)
(38.7)
(32.3)



A quick update. Management recently said it was committed to opening
about 10 new outlets in 2015. These outlets are to be located in strategic
and densely populated urban areas around the Klang Valley, in line with
its new expansion strategy. Caring Pharmacy (Caring) currently has a
strong foothold in urban middle class areas like Damansara, and
Bangsar. The group plans to operate a total of 115-120 outlets by 2016.
Industry development. Our recent observation on Caring’s major
competitors – Cosway (M) SB (Cosway) and Guardian Health & Beauty
SB (Guardian) – has shown a reduction in outlet numbers in major states
like Kuala Lumpur and Selangor. We believe this is due to the
competition from independent pharmacies and the high costs incurred in
maintaining pharmacists at these outlets. Caring has now surpassed
Guardian with 102 outlets vs 99 respectively. Meanwhile, Cosway
remains in the lead with 138 outlets.
Goods and services tax (GST) is a minimal concern. We expect
Caring to experience minimal impact from the implementation of the
GST. This is due to the healthcare demand being inelastic. Hence, we
expect the group’s sales to remain steady post GST.
Risks. We remain cautious on: i) increasing price competition, ii)
underperformance of new outlets, iii) rising operating costs – personnel
and marketing, and iv) scarcity of good new locations.
Forecasts. We make no changes to our forecasts at this juncture.
Upgrade to NEUTRAL. We upgrade Caring to NEUTRAL (from Sell)
with an unchanged MYR1.27 TP pegged to 16x 2015F P/E. We believe
the recent selldown of its shares has priced in the two consecutive
quarterly earnings disappointments and the weakness in the financial
market. We view the group’s increasing presence in the retail pharmacy
market vis-à-vis its peers as positive, in the long run. However, the
operating environment remains challenging in the near term.
Shariah compliant
Alexander Chia +603 9207 7621
alexander.chia@rhbgroup.com


2

.
2
0
.
2




May-13
May-14
321
338
367
395
401
Reported net profit (MYRm)
20.6
16.1
16.6
18.1
19.5
Recurring net profit (MYRm)
20.6
16.1
16.6
18.1
19.5
Recurring net profit growth (%)
12.5
(21.8)
3.1
9.0
8.2
Recurring EPS (MYR)
0.09
0.07
0.08
0.08
0.09
Total turnover (MYRm)
May-15F May-16F May-17F
Recurring P/E (x)
12.6
16.1
15.6
14.3
13.3
The Research Team +603 9207 7663
P/B (x)
2.60
2.30
2.01
1.76
1.53
research2@rhbgroup.com
P/CF (x)
25.2
9.9
11.8
10.4
EV/EBITDA (x)
Net debt to equity (%)
na
7.1
74.3
8.5
7.5
6.1
41.2
15.1
13.7
13.1
12.4
net cash
net cash
net cash
net cash
net cash
(49.5)
(42.1)
(34.4)
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 7 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 7 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
(formerlyfinancial
known asadviser
RHB
OSK (China)
Advisory
Ltd. into any
RHBtransaction
OSK Indochina
Securities
Limited
(formerly
investments
consultIndonesia
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 7 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 7 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