Asia Equities Daily Focus: Asian Edition
Deutsche Bank Markets Research Asia Pan-Asia Strategy Periodical Asia Equities Daily Focus: Asian Edition Date 7 July 2015 Today's research headlines Asian Edition ________________________________________________________________________________________________________________ Deutsche Bank AG/Hong Kong Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1. MCI (P) 124/04/2015. James Russell-Stracey Equity Focus (+852) 2203 6186 james.russell-stracey@db.com David-J Clark Research Analyst (+852) 2203 6149 david-j.clark@db.com INDEX EQUITIES Close 1D Chg %Chg SHSZ300 3998.54 112.62 2.90 HSCEI 12231.43 -377.55 -2.99 HSI 25236.28 -827.83 -3.18 TWSE 9255.96 -102.27 -1.09 KOSPI 2053.93 -50.48 -2.40 FSSTI 3332.94 -9.79 -0.29 KLCI 1717.05 -17.19 -0.99 SENSEX 28208.76 115.97 0.41 NIFTY 8522.15 37.25 0.44 SET 1473.23 -16.36 -1.10 JCI 4916.74 -66.17 -1.33 PCOMP 7455.15 -80.15 -1.06 ASX200 5475.00 -63.30 -1.14 FOREX (vs US$) Close 1D Chg YTD Rmb 6.21 0.00 -0.03 HK$ 7.75 0.00 0.03 NT$ 30.93 0.04 2.36 Won 1126.44 2.20 -3.04 S$ 1.35 0.01 -1.90 M$ 3.81 0.03 -8.14 Rupee 63.40 -0.07 -0.62 Baht 33.86 0.05 -2.69 Rupiah 13347.00 35.00 -7.24 Peso 45.11 0.06 -0.86 A$ 0.75 0.00 -8.40 LATEST COMMODITY PRICES Commodities Close 1D Chg YTD West Texas 53.26 -3.67 -0.02 Brent 55.64 -3.89 -0.22 CRB 217.87 -6.68 -5.26 Copper 253.10 -10.35 -10.42 Gold (Spot) 1168.38 -0.11 -1.39 Alum. (LME) 1710.00 -14.00 -7.69 Baltic Dry 805.00 11.00 2.94 Source: Bloomberg Finance LP TOP STORIES Hong Kong Banks Resilient fundamentals, supported by capital strengths Franco Lam Page 6 India Equity Strategy: June'15 preview Another muted quarter, but incremental improvement over Mar'15 Abhishek Saraf Page 7 Indonesian cement Reality check...lower volume and margin Albert Saputro Page 8 ESTIMATES AND TARGET PRICE CHANGES CITS (601888.SS), CNY57.61, Buy, Price Target CNY85.00 More confident after our recent channel checks in Sanya Tallan Zhou Page 9 LARGAN Precision (3008.TW), TWD3630.00, Buy, Price Target TWD3900.00 Front cam, dual cam, and optical zoom Birdy Lu Page 10 Siliconware Precision (2325.TW), TWD46.05, Hold, Price Target TWD52.00 Weaker-than-expected near-term momentum Michael Chou Page 11 Nexon (3659.T), JPY1636.00, Buy, Price Target JPY2000.00 Possible near-term pullback would be a buying opportunity Hanjoon Kim Page 12 Toyota Boshoku (3116.T), JPY2092.00, Hold, Price Target JPY1940.00 Target price ¥1,940, Hold rating maintained Hiroshi Kuriu Page 13 STRATEGY/ECONOMICS Japan FI Morning Memo Risk-off JGB buying likely to dominate in the short-term Makoto Yamashita Page 14 Japan FX Insights JPY: What to watch for this week Taisuke Tanaka Page 15 US Daily Economic Notes The JOLTS series have yet to jolt Fed policymakers Joseph LaVorgna Page 16 ADDITIONAL RESEARCH China Modern Dairy (1117.HK), HKD2.48, Sell, Price Target HKD2.20 Issuing new shares to acquire JVs Winnie Mak Page 17 China Prop Weekly Weekly sales stayed flat from the peak last week Tony Tsang Page 18 China Property Guangzhou tour takeaways; strong momentum, lower mortgage rate Tony Tsang Page 19 Hengan Intl. (1044.HK), HKD87.10, Buy, Price Target HKD95.10 China Consumer & Media Corporate Day takeaways Winnie Mak Page 20 HK Property Weekly Volume fell as buyers turned cautious in light of volatile stock market Tony Tsang Page 21 7 July 2015 Asia Equities Daily Focus: Asian Edition Page 2 Deutsche Bank AG/Hong Kong ADDITIONAL RESEARCH Tingyi (0322.HK), HKD14.90, Hold, Price Target HKD17.60 China Consumer & Media Corporate Day takeaways Winnie Mak Page 22 Airtac International (1590.TW), TWD180.50, Hold, Price Target TWD224.00 China tech trip takeaways Birdy Lu Page 23 FIH Mobile Limited (2038.HK), HKD4.61, Buy, Price Target HKD5.20 China tech trip takeaways Birdy Lu Page 24 Taiwan Semi Strategy Defensive play should dominate in 2H15 Michael Chou Page 25 Astra Int'l (ASII.JK), IDR7000.00, Buy, Price Target IDR8500.00 Downside protection, Leveraged upside Nicholas Nugroho Page 26 Indo Strategy Improving VAT collection Heriyanto Irawan Page 27 Thai Bank Sector When bear case is the base case Peach Patharavanakul Page 28 WHA Corporation (WHA.BK), THB3.80, Hold, Price Target THB3.70 REIT injection plans still on track Nash Shivaruchiwong Page 29 India Oil & Gas Outperformance to continue Harshad Katkar Page 30 Bank Sector Strategic stock sale update: FSA Monitoring Report, SMFG report Yoshinobu Yamada Page 31 Internet D gourmet off to favorable start Takahiro Kazahaya Page 32 Machinery sector 1Q results outlook: Mitsubishi Electric, Makita Takeshi Kitaura Page 33 Retail Sector
