What’s Changed, Research Focus, Today’s Events
abcGlobal ResearchFirst Light Asia What’s Changed, Research Focus, Today’s Events Ticker Company Ratingwas Currency Target was EPS '10 EPS '11 Return Price Price At Close Up GCPL IN Godrej Consumer Products OW N INR 415.00 330.00 11.33 16.04 20.5% 349.20 13 Jul SATS SP Singapore Airport Terminal Svcs OW SGD 3.25 3.10 0.17(a) 0.19 21.0% 2.80 9 Jul Source: Bloomberg, HSBC estimates Click on title to open reports Research Focus POSCO (005490) - OW(V): Strong 2Q10 result, FY guidance conservative Daniel Kang* Better-than-expected 2Q OP result - top pick in our regional steel universe; an HSBC Asia Super Ten idea Higher FY10 sales revenue guidance offset by conservative FY10 OP guidance; no change to our earnings forecasts Reiterate Overweight (V) rating and KRW600,000 target price; steel prices bottoming and Daewoo Intl completion the key near-term catalyst Singapore Airport Terminal Svcs - OW: Comfortable play on Asia’s tourism growth Mark Webb* Cash generative and leveraged to tourism rebound in Asia SGD700m war-chest provides support to near double-digit organic growth and continued high dividend payout Reiterate Overweight rating, raise target price to SGD3.25 from SGD3.10 Infosys Technologies - OW: 1QFY11 – Growth momentum continues Yogesh Aggarwal* Strong volume growth and increased guidance clouded by high attrition and decline in pricing in 1Q We maintain our positive outlook for growth and pricing in 2H11/FY12 Maintain Overweight rating and INR3,200 target price 14 July 2010 Ticker Event Rating Target Price Ticker Event NI Bbg HDFC HDFC IN Q1 N (V) 2657.0 2,941.7 Marriott International MAR US Q2 30.7 India WPI-sa Jun 0.08% Import Price Index (MoM) Jun US -0.2% Thailand benchmark interest rate 14-Jul 1.5% Advance retail sales Jun US -0.1% Singapore advance GDP estimate 2Q Business inventories May US 0.5% Korea unemployment rate Jun Minutes of FOMC meeting 14-Jul US Source: Bloomberg, HSBC estimates Eliot Camplisson* Global Head of Research Marketing +852 2996 6514eliot.camplisson@hsbc.com.hk*Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to FINRA regulations Issuer of report: The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Research at: http://www.research.hsbc.comDisclaimer & Disclosures This report must be read with the disclosures in the Disclosure appendix, and the Disclaimer, which forms part of it Disclosures for companies can be accessed via the hyperlinks to the original published research, which can be found in the title First Light Asia 14 July 2010 abc Regional Asian FX Policy Dashboard - China reserves tell a different story Richard Yetsenga China’s 2Q reserves are more interesting than has been widely reported FX valuation adjustments explain only part of China’s unusually low quarterly reserve accumulation – there were likely capital outflows, as well Some may conclude these were just hot money outflows, and thus a temporary phenomenon China & Hong Kong Get ready for lower readings - China June data preview Qu Hongbin Quantitative tightening is working and the economy is cooling off, so get ready for more signs of slowdown in coming months All leading indicators suggest downside surprise in June’s data flow - but don’t panic: it’s just a slowdown not meltdown We still expect around 9% GDP growth in 2H10 and 2011 Korea Korea Smartphones - Emerging alternative eco-systems Brian Sohn* Korea’s smartphone market soars, creating another test bed for handset vendors to develop differentiation strategies Handset vendor customisation plus collaboration with operators create alternatives
