First Light Asia

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 14 HK Hysan Development Hold HKD 35.5034.00 2.15(a) 2.24 33.7008 Mar Source: Bloomberg, HSBC estimates Research Focus China e-finance - Fortunes diverging Michael Chu*  We are positive on e-banks and wealth management platforms, cautious on P2P lending and e-payment  Five leaders are valued at a combined RMB500bn in recent fundraising  China is the most promising e-finance market in Asia; Ant Financial (Alibaba), Tencent, Ping An and JD Finance are well-placed MediaTek (2454 TT) - Hold: Limited near-term impact from the US imposing export controls on ZTE Yolanda Wang*  ZTE accounts for less than 7% of MediaTek’s shipments  Earthquake in February has had a more significant impact  Maintain Hold with a TP of TWD198 India IT Services - Digital vs traditional: we weren’t “analog” 5 years back Yogesh Aggarwal*  “Digital” spending trends are important, but demand in core markets (banking, retail, autos) remains the key factor to watch  We see digital spend as an evolution of traditional IT spend; Indian IT firms are thus not far behind the technology curve  We think IT stocks will perform better in 2016 after the gradual de-rating in 2014-15; buy Infosys and HCLT Hysan Development (14 HK) - Hold: Steady performance amid headwinds Perveen Wong*  In-line and solid FY15 results reflecting strong office and resilient retail rental income amid sluggish retail sales in HK  Earnings growth will likely slow before picking up in FY18e upon Lee Garden Three completion  Tweaking target price to HKD35.5 (from HKD34) 9 March 2016 First Light Asia RESEARCH MARKETING ASIA Ticker Event Rating Target Price Ticker Event NI Bbg Wharf Holdings Ltd/The 4 HK Y Hold 44.0041.7Dollar General CDG US Q475.0Cathay Pacific Airways Ltd 293 HK Y Buy 15.5013.5MBA Mortgage ApplicationsUS 4-Mar--Malaysia Overnight Policy Rate 9-Mar 3.25%Wholesale Inventories MoMUS Jan-0.20%Source: Bloomberg, HSBC estimates Alfred Chin* Research Marketing +852 2996 6753alfred.k.y.chin@hsbc.com.hk *Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to FINRA regulationsChina e-finance | MediaTek | India IT Services | Hysan Development abc RESEARCH MARKETING  ASIA 9 March 2016 Regional Japan - GDP (Q4, revised): policy response likely Izumi Devalier Japan - Eco Watchers Survey (Feb): Negative on negative rates Izumi Devalier NTT (9432 JP) - Buy: Potential Dell Services acquisition Neale Anderson* China & Hong Kong Don't sweat China's demographics - Latest op-ed published by the SCMP Frederic Neumann China (Trade, February 2016) - Exports suffering from global demand malaise Jing Li Guangzhou R&F (2777 HK) - Buy: further evidence of a turnaround to materialize Derek Kwong* Soho China (410 HK) - Buy: Generous payout policy reaffirmed with another special dividend Michelle Kwok* China Aoyuan (CAPG) - Strong FY2015 results Keith Chan JOIN Webcast: China Insurance vs China Banks - the ABS NPL juggernaut - Wednesday, 9 March 2016 | 20:30 HKT | 12.30 UKT | 07:30 NYT James E Garner* Korea Partron (091700 KS) - Buy: Margin expansion from product mix improvement Ricky Seo* ASEAN CapitaLand Commercial Trust (CCT SP) - Buy: Feedback from investor meetings Pratik Burman Ray* India Bharat Forge (BHFC IN) - Buy: Takeaway from management meeting and plant visit Puneet Gulati* India Real Estate - Real Estate Bill close to becoming a reality Puneet Gulati* Indian Financials - Management Meeting Updates Sachin Sheth* Global Alpha Ideas - Update of our Long-Term, Low Turnover (LT²) model Kai Boecker*