First Light Asia
First Light Asia What’s Changed, Research Focus, Today’s Events Ticker Company Rating was Currency Target was EPS '13a EPS '14e Price Price At Close New 338 HK Sinopec Shanghai Petrochemical N HKD 2.60 CNY 0.19 CNY -0.04 2.32 16 Jan 600688 CH Sinopec Shanghai Petrochemical UW RMB 2.10 CNY 0.19 CNY -0.04 4.30 16 Jan Up MAPI IJ Mitra Adiperkasa OW(V)N(V) IDR 6,850 5,350 197.47 98.93 5,450 21 Jan 1052 HK YueXiu Transport Infrastr OW UW HKD 6.30 4.90 CNY 0.34 CNY 0.36 4.54 21 Jan TCAP TB Thanachart Capital N UW THB 34.00 35.25 4.01(a) 33.50 20 Jan Down SGX SP Singapore Exchange N OW SGD 7.80 7.78 20 Jan RALI IN Rallis India Ltd UW N INR 193 223 7.81(a) 229.05 20 Jan 005830 KS Dongbu OW KRW 67,000 68,000 52,300 20 Jan Source: Bloomberg, HSBC estimates Click on title to open reports Research Focus Sinopec Shanghai Petrochemical (338 HK/600688 CH) - Initiate N on H / UW on A: Wait for more margin visibility Hanyu Zhang* We expect better refining margins in 2015-16e when oil prices start to rise but weak chemical demand is likely to drag on earnings Our earnings forecasts are well below consensus. Valuation not significantly discounted to justify a positive view either We initiate N rating on SPC-H with a TP of HKD2.6, and initiate UW rating on SPC-A with a TP of RMB2.1 Asia LCD - Bears missing the big picture, again Jerry Tsai* Panel prices unlikely to see a severe correction in 1H15; we expect prices to rise in 2Q Not enough new capacity from China to lead to oversupply in 2H; supply tightness is structural Reiterate OW on AUO/LGD/INX; we believe the bears are missing size migration and replacement demand, again Mitra Adiperkasa (MAPI IJ) - Upgrade to OW(V): Margin recovery in the cards Permada Darmono* Inventory levels should be better going into 2015 and we expect improving sell through rate Better performance in 2016e and beyond not yet priced in Upgrade to OW(V) from N(V) and raise TP to IDR6,850 from IDR5,350 Singapore Exchange (SGX SP) - Downgrade to Neutral: Uncertainty over A50 futures outlook York Pun* Strong derivatives business has offset a subdued securities business and led SGX to post a solid result But uncertainties are rising as we expect A-share turnover to moderate and competition could arise as HKEx expands its mutual market access with the mainland markets Downgrade rating to Neutral; maintain target of SGD7.8 22 January 2015 Ticker Event Rating Target Price Ticker Event NI Bbg Keppel Corp KEP SP Y N 11.85 8.1 Verizon Communic VZ US Q4 47.1 Cairn India CAIR IN Q3 UW223.00237.0Union PacificUNP US Q4110.8Ascendas Real Estate Investment Trust AREIT SP Q3 N 2.352.5StarbucksSBUX US Q179.6Prestige Estates Projects PEPL IN Q3 N (V)260.00246.1CovidienCOV US Q1102.9Hong Kong CPI Dec 4.5%Continuing ClaimsUS 10-Jan--Source: Bloomberg, HSBC estimates Colin Davis* Head of Research Marketing Asia +852 2996 6635colindavis@hsbc.com.hk*Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to FINRA regulations Issuer of report: The Hongkong and Shanghai Banking Corporation Limited View HSBC Global Research at: http://www.research.hsbc.comDisclaimer & Disclosures This report must be read with the disclosures in the Disclosure appendix, and the Disclaimer, which forms part of itDisclosures for companies can be accessed via the hyperlinks to the original published research, which can be found in the title THIS CONTENT MAY NOT BE DISTRIBUTED IN THE PEOPLE'S REPUBLIC OF CHINA (THE "PRC") (EXCLUDING SPECIAL ADMINISTRATIVE REGIONS OF HONG KONG AND MACAO) First Light Asia 22 January 2015 abcRegional New Zealand's inflation falls - Petrol pushes prices down Paul Bloxham New Zealand's Q4 CPI print came in slightly below expectations at 0.8% y-o-y (market had 0.9%; HSBC had 1.0%) Unsurprisingly, falling petrol prices dragged tradable prices down, with
