Friday, 28 September 20181 Refer to last page for important disclosures. Regional Morning Notes PLEASE CLICK ON THE PAGE NUMBER TO MOVE TO THE RELEVANT PAGE. REGIONAL Strategy Keppel Makes Offers You Can’t Refuse Page 2 It’s the best deal you’ll ever get. CHINA Economics The Big Picture Page 5 Waiting for Godot? Sector Internet Page 8 Consumption slowdown and its impact on the e-commerce sector. Update Bilibili (BILI US/NOT RATED/US$12.87) Page 10 Forerunner to focus on Generation Z; building up the Pan-ACG community. INDONESIA Strategy Feedback From Local Marketing Trip Page 13 Local fund managers are cautious and have increased their cash holdings. CPO is emerging. Stock picks: LSIP, SGRO, GGRM, ASII, SIDO, BBNI, BMRI and BBRI. MALAYSIA Update Maxis (MAXIS MK/HOLD/RM5.84/Target: RM5.95) Page 15 Termination of U Mobile network sharing agreement to be felt in 2H18; trim net profit forecasts by 3.5-5%. Await better entry at RM5.10. Scientex (SCI MK/BUY/RM8.56/Target: RM10.41) Page 18 Potential winner in the changing landscape of global manufacturing supply chains, given the strategic location of its manufacturing plants in Malaysia and the US. THAILAND Update Sino-Thai Engineering & Construction Page 21(STEC TB/BUY/Bt24.50/Target: Bt33.00) Raise target price to Bt33.00 on 2019 valuation. Winning the high-speed train project would be a catalyst. INDICES Prev Close 1D % 1W % 1M % YTD % DJIA 26439.9 0.2 (0.8) 1.4 7.0 S&P 500 2914.0 0.3 (0.6) 0.6 9.0 FTSE 100 7545.4 0.5 2.4 (0.9) (1.9) AS30 6299.3 (0.1) 0.4 (1.8) 2.1 CSI 300 3403.6 (0.4) 2.8 0.1 (15.6) FSSTI 3236.3 (0.1) 1.8 (0.3) (4.9) HSCEI 10939.0 (0.4) 1.8 (1.4) (6.6) HSI 27715.7 (0.4) 1.1 (2.2) (7.4) JCI 5929.2 1.0 (0.0) (1.9) (6.7) KLCI 1798.6 (0.0) (0.3) (1.5) 0.1 KOSPI 2355.4 0.7 2.3 2.3 (4.5) Nikkei 225 23796.7 (1.0) 0.5 4.3 4.5 SET 1753.0 0.2 0.0 2.0 (0.0) TWSE 11034.2 0.5 1.6 0.4 3.7 BDI 1503 3.7 7.7 (11.4) 10.0 CPO (RM/mt) 2122 0.3 (0.7) (2.6) (11.2) Brent Crude (US$/bbl) 82 0.5 3.8 7.2 22.2 Source: Bloomberg TOP PICKS Ticker CP (lcy) TP (lcy) Pot. +/- (%) BUY Baoshan Iron & Steel 600019 CH 7.91 9.53 20.5 Gudang Garam GGRM IJ 75,000.00 85,000.00 13.3 PP Persero PTPP IJ 1,535.00 3,700.00 141.0 CIMB CIMB MK 6.03 7.00 16.1 OCBC OCBC SP 11.36 13.68 20.4 SingTel ST SP 3.21 3.94 22.7 Siam Cement SCC TB 450.00 530.00 17.8 SELL Hartalega HART MK 6.49 4.02 (38.1) 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