Thursday, 22 March 20181 Refer to last page for important disclosures. Regional Morning Notes PLEASE CLICK ON THE PAGE NUMBER TO MOVE TO THE RELEVANT PAGE. CHINA Sector Aviation Page 22H17 results preview: Earnings could provide a reality check as core earnings decline. Downgrade to UNDERWEIGHT. Results China Coal (1898 HK/HOLD/HK$3.34/Target: HK$3.34) Page 42017: Disappointing results on impairment losses and cost hikes. China Meidong Auto Holdings (1268 HK/BUY/HK$3.04/Target: HK$4.30) Page 72017: Results beat expectations on faster-than-expected ramp-up of new stores. Geely Auto (175 HK/BUY/HK$25.80/Target: HK$30.00) Page 102017: Net profit up 108% yoy, in line with expectations Tencent Holdings (700 HK/BUY/HK$462.60/Target: HK$510.00) Page 134Q17: Results in line; new games and new investments to drive future growth. MALAYSIA Update Axiata (AXIATA MK/HOLD/RM5.49/Target: RM5.45) Page 16The group offers moderate growth and this is balanced against a net dividend yield of 2-3%. We prefer to accumulate at RM4.60. Sapura Energy (SAPE MK/HOLD/RM0.52/Target: RM0.59) Page 19Pegaga job boosts ytd contract wins to RM3b, and also addresses FY19 revenue risk. Current valuation has discounted impairment risks. Upgrade to HOLD. SINGAPORE Update Oversea-Chinese Banking Corp (OCBC SP/BUY/S$13.42/Target: S$14.95) Page 22Intelligent banking services. THAILAND Strategy Growing Investor Confidence Page 25Investors are adopting a more optimistic view towards the Thai market, thanks to a continued improvement in the underlying economy. KEY INDICES Prev Close 1D % 1W % 1M % YTD % DJIA 24682.3 (0.2) (0.3) (1.1) (0.1) S&P 500 2711.9 (0.2) (1.4) 0.3 1.4 FTSE 100 7039.0 (0.3) (1.3) (2.9) (8.4) AS30 6053.1 0.2 0.2 (0.1) (1.9) CSI 300 4061.1 (0.4) (0.3) 0.2 0.7 FSSTI 3511.1 (0.1) (0.8) 0.6 3.2 HSCEI 12521.6 (0.6) (1.3) (0.1) 6.9 HSI 31414.5 (0.4) (0.1) 1.4 5.0 JCI 6312.8 1.1 (1.1) (4.3) (0.7) KLCI 1865.8 0.5 0.5 0.6 3.8 KOSPI 2485.0 (0.0) (0.0) 2.9 0.7 Nikkei 225 21381.0 (0.5) (2.7) (2.7) (6.1) SET 1801.4 0.1 (0.7) 0.7 2.7 TWSE 11011.1 0.0 (0.3) 3.3 3.5 BDI 1122 (1.2) (4.0) (2.1) (17.9) CPO (RM/mt) 2439 0.6 1.9 (2.4) 2.0 Brent Crude (US$/bbl) 69 3.0 7.1 6.2 3.9 Source: Bloomberg TOP PICKS Ticker CP (lcy) TP (lcy) Pot. +/- (%) BUY Baoshan Iron & Steel 600019 CH 9.16 11.25 22.8 China Shineway 2877 HK 11.96 14.09 17.8 Nippon Indosari ROTI IJ 1,215.00 1,425.00 17.3 PP Persero PTPP IJ 2,800.00 3,700.00 32.1 Gabungan AQRS AQRS MK 1.60 2.47 54.4 OCBC OCBC SP 13.42 14.95 11.4 SingTel ST SP 3.47 4.40 26.8 Siam Cement SCC TB 502.00 600.00 19.5 SELL Great Wall Motor 2333 HK 8.75 4.70 (46.3) HM Sampoerna HMSP IJ 4,210.00 3,700.00 (12.1) Hartalega HART MK 11.50 8.04 (30.1) KEY ASSUMPTIONS GDP (% yoy) 2016 2017F 2018F US 1.5 2.5 2.5 Euro Zone 1.8 2.2 1.9 Japan 0.9 1.6 1.8 Singapore 2.0 3.3 2.5 Malaysia 4.2 5.8 5.0 Thailand