Wednesday, 26 September 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 Internet Page 2 Pre-tax deduction proportion of R&D expenses increases to 75%. Metals Page 3 Copper: Prices rebound on soft US dollar; positive view on copper in the medium term remains unchanged. INDONESIA Small/Mid Cap Highlights Integra Indocabinet (WOOD IJ/NOT RATED/Rp615) Page 5 Expecting positive impact from US-China trade war. MALAYSIA Results VS Industry (VSI MK/BUY/RM1.62/Target: RM1.75) Page 8 4QFY18: Results slightly above expectations. Key re-rating catalyst for share price will be newsflow of new contracts to utilise the new capacities. Update Gamuda (GAM MK/BUY/RM3.10/Target: RM4.29) Page 11 Expected to deliver promising earnings in FY18 backed by construction billings recognition and improved property sales from overseas markets. Yinson (YNS MK/BUY/RM4.55/Target: RM5.40) Page 14 Progress of existing projects remains on track to meet the short timeline of the first oil/gas targets. Remains optimistic of securing more projects. Small-Mid Cap Highlights Cahya Mata Sarawak (CMS MK/BUY/RM3.07/Target: RM4.20) Page 17 Temporary weakness in share price is an opportunity to accumulate as earnings remain intact. SINGAPORE Update Oversea-Chinese Banking Corporation Page 20(OCBC SP/BUY/S$11.45/Target: S$13.68) Redefining customer engagement through digital transformation. THAILAND Initiate Coverage Krungthai Card (KTC TB/BUY/Bt35.50/Target: Bt41.25) Page 23 Leading consumer credit provider with strong earnings outlook. KEY INDICES Prev Close 1D % 1W % 1M % YTD % DJIA 26492.2 (0.3) 0.9 2.7 7.2 S&P 500 2915.6 (0.1) 0.4 1.4 9.0 FTSE 100 7507.6 0.7 2.8 (0.9) (2.3) AS30 6299.1 (0.0) 0.5 (0.9) 2.1 CSI 300 3379.8 (0.9) 5.5 1.6 (16.2) FSSTI 3236.1 0.5 3.1 0.7 (4.9) HSCEI 10827.5 (1.8) 3.5 0.4 (7.5) HSI 27499.4 (1.6) 2.1 (0.6) (8.1) JCI 5874.3 (0.1) 1.1 (1.6) (7.6) KLCI 1794.5 (0.3) 0.1 (0.8) (0.1) KOSPI 2339.2 0.7 0.9 2.0 (5.2) Nikkei 225 23940.3 0.3 3.7 5.9 5.2 SET 1748.0 (0.1) 0.2 2.6 (0.3) TWSE 10978.9 0.1 1.4 1.6 3.2 BDI 1434 1.5 5.8 (15.5) 5.0 CPO (RM/mt) 2126 0.4 (3.8) (2.5) (11.1) Brent Crude (US$/bbl) 82 0.8 3.6 8.0 22.4 Source: Bloomberg TOP PICKS Ticker CP (lcy) TP (lcy) Pot. +/- (%) BUY Baoshan Iron & Steel 600019 CH 7.79 9.53 22.3 Gudang Garam GGRM IJ 74,000.00 85,000.00 14.9 PP Persero PTPP IJ 1,525.00 3,700.00 142.6 CIMB CIMB MK 6.00 7.00 16.7 OCBC OCBC SP 11.45 13.68 19.5 SingTel ST SP 3.20 3.94 23.1 Siam Cement SCC TB 454.00 530.00 16.7 SELL Hartalega HART MK 6.59 4.02 (39.0) KEY ASSUMPTIONS GDP (% yoy) 2017 2018F 2019F US 2.2 2.7 2.3 Euro Zone 2.4 2.1 1.8 Japan 1.7 1.2 1.1 Singapore 3.6 3.2 2.8 Malaysia 5.9 4.8 4.8 Thailand 3.9 4.5 4.2