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 Currency Target was EPS '15e EPS '16e Price Price At Close Up 1326 TT FCFC Buy Hold TWD 95.00 84.00 4.72(a) 4.85 80.80 03 May BABA US Alibaba Group Buy USD 113.00 111.00 - 16.85(a) 75.82 05 May 002038 CH Beijing SL Pharmaceutical Buy CNY 36.40 33.30 0.84(a) 0.81 29.21 04 May 2474 TT Catcher Technology Buy TWD 295.00 286.00 32.61(a) 27.77 202.00 05 May 1301 TT FPC Buy TWD 90.00 87.00 4.85(a) 4.93 79.00 03 May 6505 TT FPCC Buy TWD 108.00 100.00 4.97(a) 5.11 91.30 03 May AREIT SP Ascendas REIT Hold SGD 2.55 2.50 0.146(a) 0.154 2.40 05 May CSTRL IN Castrol India Ltd Hold INR 427.00 415.00 12.44(a) 14.30 387.95 04 May KLBF IJ Kalbe Farma Hold IDR 1400.00 1250.00 42.47(a) 46.07 1345.00 03 May MPEL US Melco Crown Hold USD 16.60 16.50 0.50(a) 0.29 15.25 03 May 107 HK Sichuan Expressway-H Hold HKD 3.10 2.70 CNY 0.33(a) CNY 0.17 2.74 05 May 601107 CH Sichuan Expressway-A Reduce CNY 2.70 2.40 0.33(a) 0.17 4.46 05 May 601933 CH Yonghui Superstores Reduce CNY 6.66 6.40 0.16(a) 0.16 8.73 04 May Down 2038 HK FIH Mobile Ltd Hold Buy HKD 2.83 4.52 0.03(a) - 3.19 05 May 1476 TT Eclat Textile Buy TWD 503.00 597.00 15.99(a) 17.77 348.50 04 May HMN IN Emami Ltd Buy INR 1330.00 1400.00 - 15.82(a) 978.20 05 May 3552 TT Tung Thih Electronic Buy TWD 610.00 670.00 9.39(a) 18.51 533.00 05 May 1303 TT NYP Hold TWD 70.00 65.00 4.50(a) 4.96 62.70 03 May SUNP IN Sun Pharma Hold INR 760.00 805.00 19.30(a) 23.54 804.20 04 May Source: Bloomberg, HSBC estimates Research Focus Taiwan Petrochemicals - Stay positive on FPG; upgrade FCFC to Buy John Chung* Higher oil prices and stronger demand outlook in 2017-18e Convergence of olefin and aromatic cycles starting from 2016e Valuations still attractive, with yields improving Eclat Textile (1476 TT) - Buy: New product development to revitalise growth Chloe Wu* We expect Eclat to resume growth momentum in 2H16e Eclat translates its R&D to earnings growth on P&L; 25% FY16-18e earnings CAGR Maintain Buy but cut our target price to TWD503 (from TWD597); share price correction creates re-entry point FIH Mobile Ltd (2038 HK) - Downgrade to Hold: Negative profit warning Yolanda Wang* Worse-than-expected competition in component business leads to lower gross margins Cash is 72% of its market capitalization Downgrade to Hold from Buy with a TP of HKD2.83 (down from HKD4.52) based on lower PB multiple 6 May 2016 First Light Asia RESEARCH MARKETING ASIA Ticker Event Rating Target Price Ticker Event NI Bbg Siemens Ltd SIEM IN Q2 Reduce 786.00 1,131.6 Cognizant Techno CTSH US Q1 59.7 Titan Co Ltd TTAN IN Y Buy 400.00 355.9 Cigna Corp CI US Q1 139.9 Bumrungrad Hospital PCL BH TB Q1 Hold 242.00 203.0 Exelon Corp EXC US Q1 35.2 Novatek Microelectronics Corp 3034 TT Q1 Buy 149.00 113.0 Weyerhaeuser Co WY US Q1 32.0 Inox Wind Ltd INXW IN Y Buy 347.00 271.8 Willis Towers Wa WLTW US Q1 124.2 Source: Bloomberg, HSBC estimates Alfred Chin* Research Marketing +852 2996 6753 alfred.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 regulations Taiwan Petrochemicals | Eclat Textile | FIH Mobile Ltd | Alibaba Group RESEARCH MARKETING ASIA 6 May 2016 Research Focus (Contd.,) Alibaba Group (BABA US) - Buy: Leveraging data to raise the value of its platform Chi Tsang* Core e-commerce business posts fastest growth in 6 quarters Stable GMV growth but rising monetization Maintain Buy and raise SOTP TP to USD113 from USD111; Alibaba is an HSBC Asia Super Ten portfolio constituent In this document HSBC may comment on the potential economic impact dependent on the outcome of the UK Referendum. HSBC is not taking a political position and this document and the information contained herein are not intended to promote or procure, or otherwise be in connection with promoting or procuring, a particular outcome in relation to the question asked in the UK Referendum. RESEARCH MARKETING ASIA 6 May 2016 Regional Asia Chart of the Week - Nope, false signal Frederic Neumann So, we published a chart earlier this week that caused a bit of excitement among our readers. It shows a spike in the new order-to-inventory ratio for emerging Asia (based on the latest crop of PMIs). This, ordinarily, points to an ac
