CEEMEA & Latam Daybook

Deutsche Bank Markets Research Global Periodical CEEMEA & Latam Daybook Date 20 October 2016 Thursday, 20 October 2016 ________________________________________________________________________________________________________________ Deutsche Bank AG/London Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1. MCI (P) 057/04/2016. Pascal Moura Head of Research (+971) 4 4283-864 pascal.moura@db.com Mairead Smith Equity Focus (+44) 20 754-71054 mairead.smith@db.com CEEMEA Companies COMPANY UPDATE Aksigorta Alert (Hold, TP Try2.36) - 3Q16 bottom line slightly below consensus BHP Billiton Plc (Hold, TP ZAR225.00) - 1Q17: Copper drag, Onshore drag Magnit Alert (Hold, TP USD36.50) - 3Q16 preview Turk Telekom Alert (Hold, TP TRY6.00) - 3Q16 review: Slight NI miss; trimming DPS to reflect below EBIT charges LATAM Companies COMPANY UPDATE Arca Continental Alert (Hold, TP MXN118.00) - 3Q16 results moderately beat on strong pricing and cost control Bolsa Mexicana Alert (Buy, TP MXN34.00) - Good 3Q16 results offset by weak financial income Bolsa Mexicana Alert - 3Q16 conf call: positive on derivatives, less so on maintenance Gruma Alert (Buy, TP MXN330.00) - 3Q16 results confirmed positive operating trends (maintain Buy) SECTOR UPDATE Latin American Financials - 3Q16 preview: Brazil banks nearing the bottom in earnings Metals & Mining Alert - Daily prices and news: Chinese metals demand growth expected to decline STRATEGY EM Daily - Brazil: BCB cuts SELIC rate to 14.0%, as expected Commodities Special - Addressing the index investor Credit Bites - EUR HY - Technically better... US ETF+ Quarterly Directory - Q3 2016 ETPs The multi-asset essay - 50 is the new 40 European Equity Strategy - The big reflation debate DB SYNDEX: Index Change Monitor - YUM Spin-Off Added to MSCI EM DB SYNDEX: Index Change Monitor - YUM/JCI/AA Spinoffs in MSCI MACRO Brazil Update - A new phase begins US Daily Economic Notes - Early read on Q4 tax receipts VALUATION CEEMEA and Latam valuation tables Stock Performance(US$)–Gainers & Losers (CEEMEA) Top 10 Ticker Price %Chg ENEA ENA PW 2.5 10.3 Mechel MTL US 3.3 9.4 Aldrees ALDREES AB 7.5 9.3 Energa ENG PW 2.1 9.3 Tauron TPE PW 0.7 6.8 LPP LPP PW 1464.4 6.5 Sibanye Gold SGL SJ 3.1 6.2 Emlak REIT EKGYO TI 1.0 5.8 TCS TCS LI 8.7 5.6 Pfleiderer Grajewo GRJ PW 8.7 5.6 Bottom 10 Ticker Price %Chg Commercial Bank of CBQK QD 10.3 -4.8 IDH IDHC LN 2.9 -3.3 QIWI QIWI US 14.3 -3.1 Arriyadh ADCO AB 4.4 -2.9 Saudi Real Estate Co. SRECO AB 4.0 -2.9 Lenta LNTA LI 7.8 -2.9 SACO SCH AB 14.7 -2.7 SPIMACO SPIMACO AB 7.5 -2.4 ING Bank Slaski ING PW 35.9 -2.3 RBPlat RBP SJ 3.3 -2.0 Stock Performance(US$)–Gainers & Losers (LATAM) Top 10 Ticker Price %Chg Arezzo&Co ARZZ3 BS 9.6 6.9 Chedraui CHDRAUIB 2.3 4.3 Gruma GRUMAB MM 14.3 3.7 GOL S.A. GOL US 24.0 3.4 Grupo Bimbo BIMBOA MM 2.9 3.1 Southern Copper SCCO US 27.4 2.9 BM&FBovespa BVMF3 BZ 5.8 2.8 Gentera GENTERA* 2.1 2.7 Liverpool LIVEPOLC MM 11.3 2.7 Cencosud CENCOSUD CI 3.2 2.3 Bottom 10 Ticker Price %Chg Marfrig MRFG3 BS 1.8 -2.0 Banco do Brasil BBAS3 BS 8.7 -1.4 Itau Unibanco ITUB US 11.4 -1.3 Natura NATU3 BS 10.4 -1.3 BRF S.A. BRFS US 16.8 -1.2 Raia Drogasil RADL3 BZ 21.7 -1.1 Smiles SMLE3 BZ 18.0 -1.0 Bradesco BBD US 10.1 -1.0 Avianca Holdings AVH US 6.4 -0.9 Lojas Americanas LAME4 BZ 6.7 -0.9 Source::Bloomberg Finance LP Distributed on: 20/10/2016 04:13:06 GMT CEEMEA & Latam Daybook 20 October 2016 Page 2 Deutsche Bank AG/London Source: Deutsche Bank 20 October 2016 CEEMEA & Latam Daybook Deutsche Bank AG/London Page 3 ASIAN MARKET TOP STORIES Alibaba (BABA.N, Buy) – What AliCloud price cuts mean (Alan Hellawell) China Food & Beverage – Downshifting to low gears: initiating on Tingyi (Sell) and UPC (Hold) (Charlie Chen) Chinese Banks – The roadmap of SOE credit cycle (Hans Fan) INITIATION OF COVERAGE Tingyi (0322.HK, Sell) – Not yet out of the woods; we suggest that investors take profit (Charlie Chen) Uni-President China (0220.HK, Hold) – No pain, no gain; initiating coverage with a Hold rating (Charlie Chen) RECOMMENDATION CHANGES China Comm Services (0552.HK, Hold) – Time to lock in the gains; downgrading to Hold (James Wang) ESTIMATES AND TARGET PRICE CHANGES Hindustan Zinc (HZNC.BO, Buy) – Positive earnings surprise, strong 2H outlook underpin our positive view (Anuj Singla) Hitachi Chemical (4217.T, Buy) – Shares still undervalued in light of potential growth (Yu Yoshida) Japan Real Estate Inv. (8952.T, Hold) – Reiterating Hold (Yoji Otani) JSR (4185.T, Buy) – Time to recognize e