What’s Changed, Research Focus, Today’s Events
Disclaimer & Disclosures This report must be read with the disclosures in the Disclosure appendix, and with 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 Issuer of report: The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Research at: https://www.research.hsbc.com THIS CONTENT MAY NOT BE DISTRIBUTED TO THE PEOPLE’S REPUBLIC OF CHINA (THE “PRC”) (EXCLUDING SPECIAL ADMINISTRATIVE REGIONS OF HONG KONG AND MACAO) What’s Changed, Research Focus, Today’s Events Ticker Company Rating was CurrencyTarget was EPS '15e EPS '16e Price Price At Close Up 168 HK Tsingtao Brewery - H HoldReduce HKD 28.4029.30 RMB 1.22 RMB 1.19 28.1003 Feb 600600 CH Tsingtao Brewery - A HoldReduce RMB 25.20 1.221.19 26.7703 Feb 015760 KS Kepco Buy KRW 70,00067,000 20696.94 11737.99 53,00003 Feb BBRI IJ Bank Rakyat Indonesia Reduce IDR 10,200.008,900.00 988(a) 966 11,025.0002 Feb Down BRIT IN Britannia Buy INR 3,3003,600 48.23(a) 69.79 2,79302 Feb WB US Weibo Corp Buy USD 20.0022.00 0.300.25 14.4103 Feb DABUR IN Dabur India Hold INR 260310 6.03(a) 7.07 241 02 Feb 601006 CH Daqin Railway Hold CNY 7.008.50 0.960.70 6.72 03 Feb 011780 KS KKPC Hold KRW 55,00060,000 4,103 4,891 54,70004 Feb MAXIS MK Maxis Hold MYR 5.405.80 0.260.26 5.94 03 Feb NEST IN Nestle India Hold INR 6,0006,400 100.34 120.11 5,45702 Feb PRA SP Parkson Retail Asia Hold SGD 0.210.30 -0.05(a) 0.01 0.20 03 Feb SSI PM SSI Group Inc Hold PHP 3.004.40 0.290.24 3.14 03 Feb 034230 KS Paradise Reduce KRW 14,00017,000 599781 15,85004 Feb Source: Bloomberg, HSBC estimates Research Focus India Consumer - A disruptive force in the Indian consumer sector Amit Sachdeva* Patanjali, an unlisted company founded by an eminent yoga guru, is disrupting India’s consumer space We assess the impact on the companies we cover As a result, we cut target prices for Dabur, Britannia, and Nestle by between 6% and 16% Offshore RMB bonds - Dim Sum Tracker: February 2016 Helen Huang New issuance of Dim Sum bonds shrank significantly in January as RMB volatility increases and China slowdown continues More active interventions from Beijing have stabilised spot prices while increasing risk in the future Currency risk, rather than credit risk, remains the key challenge Tsingtao Brewery (168 HK / 600600 CH) - Upgrade to Hold: Still not time to accumulate Christopher K Leung* Tsingtao Brewery A- and H-shares have fallen 19-20% y-t-d; we think the risk-reward is reasonable at the current valuation Fierce competition and subdued industry growth remain key concerns, but western China could be a new growth area Trim H-share TP to HKD28.40 (from HKD29.30) on new FX assumptions; A-share TP unchanged at RMB25.20 Kepco (015760 KS) - Buy: Time for valuation re-rating Yeon Lee* The 4Q15 result was another surprise; OP was up 208% y-o-y driven by the continued fall in fuel prices Time for a valuation re-rating; we expect a stable 10% ROE with gradually abating regulation risk, valuation still at 0.5x 2016e PB We increase our target price to KRW70,000 from KRW67,000, as we factor in our lower oil price assumption 5 February 2016 First Light Asia RESEARCH MARKETING ASIA Ticker Event Rating Target Price Ticker Event NI
