Regional Morning Notes

Tuesday, 16 May 2017 1 Refer to last page for important disclosures. Regional Morning Notes PLEASE CLICK ON THE PAGE NUMBER TO MOVE TO THE RELEVANT PAGE. CHINA Economics Economic Activity Page 2 Economic activities softened in Apr 17; further weakening expected. Wanda Cinema Line (002739 CH/BUY/Rmb54.11/Target: Rmb63.00) Page 4 Acquires 1.9% stake in Bona Film Group; expect positive fundamental impact in the longer term. INDONESIA Update Indofood Sukses Makmur (INDF IJ/HOLD/Rp8,475/Target: Rp9,500) Page 7 We are not as bullish as before as the group’s discount to subsidiaries has narrowed. Downgrade to HOLD. MALAYSIA Update QL Resources (QLG MK/HOLD/RM4.94/Target: RM4.60) Page 10 POA segment’s strong growth momentum should mitigate the subdued performance by its MPM and ILF segments in the near term. SINGAPORE Results Bumitama Agri (BAL SP/BUY/S$0.75/Target: S$1.25) Page 13 1Q17: Core net profit of Rp267b (-46% qoq, +48% yoy) is lower than expected due to front-loaded fertiliser costs. 2Q17 should see stronger earnings growth. Update SIA Engineering (SIE SP/SELL/S$3.98/Target: S$3.50) Page 16 4QFY17 briefing takeaways: Earnings growth highly dependent on successful line maintenance expansion and engine shop visits. Small/Mid Cap Highlights Jumbo Group (JUMBO SP/HOLD/S$0.655/Target: S$0.64) Page 19 2QFY17: Singapore sales slow down but Shanghai operations still growing. THAILAND Results Airports of Thailand (AOT TB/HOLD/Bt41.25/Target: Bt42.50) Page 22 2QFY17: Earnings above expectations, but uncertainty over concession charges could limit upside. Downgrade to HOLD. Bangkok Dusit Medical Services (BDMS TB/BUY/Bt20.60/Target: Bt27.00) Page 25 1Q17: Weak results, but performance is expected to improve in 2H17. Banpu (BANPU TB/BUY/Bt17.90/Target: Bt24.00) Page 28 1Q17: Another great core profit; undemanding valuation. GFPT (GFPT TB/BUY/Bt17.80/Target: Bt19.80) Page 31 1Q17: Posts impressive earnings. PTT (PTT TB/BUY/Bt381.00/Target: Bt465.00) Page 34 1Q17: Earnings higher than expectations on huge non-recurring gains. KEY INDICES Prev Close 1D % 1W % 1M % YTD % DJIA 20981.9 0.4 (0.1) 2.6 6.2 S&P 500 2402.3 0.5 0.1 3.2 7.3 FTSE 100 7454.4 0.3 2.1 1.7 4.4 AS30 5868.4 (0.0) (0.5) (1.0) 2.6 CSI 300 3399.2 0.4 1.2 (2.5) 2.7 FSSTI 3264.2 0.3 1.1 3.0 13.3 HSCEI 10450.4 1.6 4.7 2.4 11.2 HSI 25371.6 0.9 3.2 4.6 15.3 JCI 5688.9 0.2 0.1 1.3 7.4 KLCI 1778.7 0.2 0.9 2.8 8.3 KOSPI 2290.7 0.2 2.2 7.3 13.0 Nikkei 225 19869.9 (0.1) (0.1) 8.4 4.0 SET 1537.4 (0.4) (2.0) (3.3) (0.4) TWSE 10036.8 0.5 1.0 3.1 8.5 BDI 994 (2.0) (0.7) (23.3) 3.4 CPO (RM/mt) 2820 0.3 3.6 2.4 (11.9) Brent Crude (US$/bbl) 52 1.9 5.0 (7.3) (8.8) Source: Bloomberg TOP PICKS Ticke