Monday, 05 January 20151 Refer to last page for important disclosures. Regional Morning Notes PLEASE CLICK ON THE PAGE NUMBER TO MOVE TO THE RELEVANT PAGE. CHINA Economics PMI and Monetary Policy Page 2 Worsening prospects reflected in PMI; overall monetary loosening expected. Sector Automobile Page 4 Subsidy cuts favour plug-in hybrid electric buses; BUY Zhengzhou Yutong. Railway Page 6 CSR-CNR merger: Newly-formed CRRC to enjoy stronger competitiveness in the overseas market and higher cost efficiency. Update Kaisa Group (1638 HK/HOLD/HK$1.59/Target: HK$1.51) Page 8 Weakens further after breaching loan agreement with HSBC. Downgrade to HOLD. Poly Property (119 HK/HOLD/HK$3.79/Target: HK$3.57) Page 11 Turning around? Upgrade to HOLD. INDONESIA Update Bank Rakyat Indonesia (BBRI IJ/BUY/Rp11,650/Target: Rp13,000) Page 14 To benefit from KUR programme. MALAYSIA Update Yinson (YNS MK/HOLD/RM2.74/Target: RM2.78) Page 17 Could double earnings in three years, but maintain HOLD as near-term prospects are already priced in. SINGAPORE Update Silverlake Axis (SILV SP/BUY/S$1.28/Target: S$1.70) Page 20 Synergistic acquisition deemed a catalyst for growth and geographical expansion. THAILAND Update Thai Union Frozen Product (TUF TB/BUY/Bt89.00/Target: Bt109.00) Page 23 Finally acquires Bumble Bee. KEY INDICES Prev Close 1D % 1W % 1M % YTD % DJIA 17833.0 0.1 (1.1) (0.7) 0.1 S&P 500 2058.2 (0.0) (1.1) (0.8) (0.0) FTSE 100 6547.8 (0.3) (0.8) (2.9) (0.3) AS30 5415.0 0.5 0.8 1.9 0.5 CSI 300 3533.7 2.2 9.4 25.3 0.0 FSSTI 3370.6 0.2 0.7 1.4 0.2 HSCEI 12245.4 2.2 4.9 5.6 2.2 HSI 23857.8 1.1 2.2 (0.6) 1.1 JCI 5242.8 0.3 2.3 1.1 0.3 KLCI 1752.8 (0.5) 0.2 0.2 (0.5) KOSPI 1926.4 0.6 (0.6) (3.0) 0.6 Nikkei 225 17450.8 (1.6) (1.0) (0.1) 0.0 SET 1497.7 (0.0) (2.2) (6.0) 0.0 TWSE 9307.3 0.4 1.6 2.1 0.0 BDI 771 (1.4) (5.3) (21.5) (1.4) CPO (RM/mt) 2297 (0.2) 3.6 7.5 (10.7) Nymex Crude (US$/bbl) 53 (1.1) (5.6) (21.2) (1.1) Source: Bloomberg TOP PICKS Ticker CP (lcy) TP (lcy) Pot. +/- ()BUY Sunac China 1918 HK 8.15 9.29 14.0 ICBC 1398 HK 5.77 6.15 6.6 Bank Mandiri BMRI IJ