Thursday, 17 November 20161 Refer to last page for important disclosures. Regional Morning Notes PLEASE CLICK ON THE PAGE NUMBER TO MOVE TO THE RELEVANT PAGE. CHINA Update Beijing Enterprises Water Group (371 HK/BUY/HK$5.61/Target: HK$7.60) Page 2A pioneer in PPP initiatives with explosive growth potential. China Overseas Land (688 HK/BUY/HK$22.00/Target: HK$30.22) Page 5Resignation of Chairman comes as a surprise; share price sees short-term negative impact. Small/Mid Cap Highlights Man Wah Holdings (1999 HK/HOLD/HK$5.29/Target: HK$5.38) Page 81HFY17: Results beat expectations; downgrade to HOLD on a still challenging US market. INDONESIA Update Bank Mandiri (BMRI IJ/HOLD/Rp10,825/Target: Rp10,650) Page 112016 has been weak for the bank; 2017 asset quality outlook does not look too reassuring. MALAYSIA Sector Oil & Gas Page 14Petronas’ 3Q16 net profit rebounds but operating cash flow declines. Based on its cash flow assessment, we continue to believe upstream activity will remain weak in 2017. Results CIMB Group (CIMB MK/HOLD/RM4.79/Target: RM5.00) Page 163Q16: Earnings marginally below our estimate due to higher-than-expected credit cost. Kuala Lumpur Kepong (KLK MK/HOLD/RM23.92/Target: RM23.80) Page 194QFY16: Operational performance within expectations. Expect FFB production growth of 7% in FY17 on yield recovery. SINGAPORE Strategy 3Q16 Report Card – No Major Surprises Page 223Q16 results mainly in line. Market earnings forecasts for 2017 were reduced slightly, with cuts seen for banks, developers and S-REITs. Update Sembcorp Marine (SMM SP/HOLD/S$1.35/Target: S$1.26) Page 24Disposes of 30% stake in associate CSG. THAILAND Update PTT (PTT TB/BUY/Bt337.00/Target: Bt430.00) Page 27Enjoying low-gas cost until 1H17. KEY INDICES Prev Close 1D % 1W % 1M % YTD % DJIA 18868.1 (0.3) 1.5 4.0 8.3 S&P 500 2176.9 (0.2) 0.6 2.1 6.5 FTSE 100 6749.7 (0.6) (2.3) (3.8) 8.1 AS30 5399.6 (0.0) 3.1 (1.3) 1.0 CSI 300 3429.6 (0.0) 2.3 4.6 (8.1) FSSTI 2794.0 (0.1) 0.1 (0.8) (3.1) HSCEI 9362.5 (0.4) (0.2) (1.9) (3.1) HSI 22280.5 (0.2) (0.6) (3.3) 1.7 JCI 5185.5 2.1 (4.2) (4.2) 12.9 KLCI 1627.6 (0.2) (1.2) (1.6) (3.8) KOSPI 1979.7 0.6 1.1 (2.4) 0.9 Nikkei 225 17862.2 1.1 9.9 5.7 (6.2) SET 1474.6 (0.1) (2.3) (0.2) 14.5 TWSE 8962.2 0.3 0.2 (2.3) 7.5 BDI 1084 1.8 13.6 21.5 126.8 CPO (RM/mt) 2894 0.8 1.7 7.9 31.5 Brent Crude (US$/bbl) 46 (1.3) (0.1) (10.8) 24.2 Source: Bloomberg TOP PICKS Ticker CP (lcy) TP (lcy) Pot. +/- (%) BUY Air China 753 HK 5.03 7.00 39.2 Ping An Insurance 2318 HK 40.55 47.00 15.9 Ciputra Property CTRP IJ 720.00 960.00 33.3 Indosat ISAT IJ 6,200.00 9,500.00 53.2 Genting Bhd GENT MK 7.74 10.10 30.5 City Dev CIT SP 8.38 10.36 23.6 OCBC OCBC SP 8.77 10.45 19.2 Bangkok Dusit BDMS TB 22.00 31.20 41.8 Siam Cement SCC TB 478.00 645.00 34.9 SELL Hartalega HART MK 4.86 3.33 (31.5) KEY ASSUMPTIONS GDP (% yoy) 2015 2016F 2017F US 2.6 2.0 2.7