Regional Morning Notes

Monday, 19 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 Strategy Expect More Growth-supportive Measures Page 2 We expect fiscal support to be stepped up in 1Q15 and investors should take another look at railway, alternative energy, building materials and heavy equipment. Update Pacific Basin Shipping (2343 HK/HOLD/HK$2.91/Target: HK$3.00) Page 4 2014 will be loss-making due to weak market and huge one-off charges. INDONESIA Update PT Logindo Samudramakmur (LEAD IJ/BUY/Rp2,195/Target: Rp4,050) Page 7 Indonesia OSV demand remains resilient; big picture remains intact. MALAYSIA Update Astro Malaysia (ASTRO MK/BUY/RM2.96/Target: RM3.65) Page 10 Recent channel check suggests that Astro will not be affected by the unfavourable US$ movements. Tenaga Nasional (TNB MK/BUY/RM14.50/Target: RM15.65) Page 13 1QFY15 results preview: Expect strong earnings on high coal plant utilisation and lumpy ICPT compensation. Negligible forex losses as the strong US$ is offset by a weaker yen. SINGAPORE Update Nam Cheong (NCL SP/HOLD/S$0.32/Target: S$0.36) Page 16 Margins to ease amid slowdown; downgrade to HOLD. THAILAND Update Bangchak Petroleum (BCP TB/BUY/Bt31.75/Target: Bt42.75) Page 19 Share price overhang to be removed soon KEY INDICES Prev Close 1D % 1W % 1M % YTD % DJIA 17511.6 1.1 (1.3) (1.6) (1.7) S&P 500 2019.4 1.3 (1.2) (2.5) (1.9) FTSE 100 6550.3 0.8 0.8 0.1 (0.2) AS30 5278.8 (0.6) (3.0) (0.6) (2.0) CSI 300 3635.1 0.9 2.5 7.4 2.9 FSSTI 3300.7 (1.1) (1.1) 0.6 (1.9) HSCEI 12076.7 (0.9) (0.0) 5.9 0.8 HSI 24103.5 (1.0) 0.8 4.3 2.1 JCI 5148.4 (0.8) (1.3) 0.1 (1.5) KLCI 1743.6 (0.1) 0.6 1.6 (1.0) KOSPI 1888.1 (1.4) (1.9) (2.2) (1.4) Nikkei 225 16864.2 (1.4) (1.8) (4.3) (3.4) SET 1517.7 (0.4) (0.8) 0.2 1.3 TWSE 9138.3 (0.3) (0.8) 1.5 (1.8) BDI 741 (1.1) 4.5 (7.7) (5.2) CPO (RM/mt) 2371 0.9 0.9 10.0 3.2 Nymex Crude (US$/bbl) 49 5.3 0.7 (12.9) (8.6) Source: Bloomberg TOP PICKS Ticker CP (lcy) TP (lcy) Pot. +/- ()BUY Sunac China 1918 HK 7.05 9.29 31.8 ICBC 1398 HK 5.68 6.90 21.5 Bank Mandiri BMRI IJ 10,700.00 12,500.00 16.8 Gamuda GAM MK 5.02 5.50 9.6 DBS DBS SP 19.81 22.68 14.5 Pacific Radiance PACRA SP 0.74 1.57 113.6 Bangkok Bank BBL TB 183.50 276.00 50.4 Advanced Info ADVANC 240.00 270.00 12.5 SELL UMWH Holdings UMWH MK 10.58 10.00 (5.5) KEY ASSUMPTIONS GDP (% yoy) 2013 2014 2015F US 1.9 2.7 3.2 Euro Zone -0.4 0.9