Asia Pacific Daily

Asia Pacific Daily See important disclosures, including any required research certifications, beginning on page 31. 4 July 2016 Top story P.2 Hong Kong Property Sector First impressions can be deceiving: another look at the contrarian case Hong Kong Property stocks are not for the faint-hearted. They never have been. History shows us that these shares can be highly volatile, particularly during times when the physical market is facing challenges. But we think such volatility presents opportunity as well as risk. Buying Hong Kong property stocks at the right time can pay off handsomely, as it did in 4Q05, 4Q08 and 4Q13 when share prices saw 50-180% upside within a few months. -- Jonas Kan Major changes Analyst Rating Page Cosmax (192820 KS) Iris Park Outperform → Buy P.4 More positive on revenue growth and margin expansion Target price ↑47.7% to KRW223,000 KASIKORNBANK Pcl (KBANK TB) Sarachada Sornsong Buy → Hold P.8 Recovery prolonged Target price ↓2.78% to THB175.00 Other research Ezion Holdings (EZI SP) Royston Tan Hold P.9 A heavily discounted rights issue Malaysia Banking Tan Ei Leen Overweight P.13 Another month of weak loan growth; 2H16 to pick up AEON Credit (ACSM MK) Tan Ei Leen Buy P.14 A solid start for 1QFY17 Japan equity research Nitori Holdings (9843 JP) Jun Kawahara 2 → Buy P.15 Our earnings forecasts upped; rating lifted to Buy Kusuri No Aoki (3398 JP) Jun Kawahara 1 → Neutral P.16 Rating cut to 3; accelerated store openings warrant caution Ariake Japan (2815 JP Satoshi Sakae new → Outperform P.17 Pure-play natural seasonings maker with strong earnings Macro research Thailand Economics Kampon Adireksombat P.18 Possible upside to 2Q16F GDP Euro wrap-up Chris Scicluna P.19 Overview Yen 4Sight Chris Scicluna P.20 Highlights Memos – quick updates Macau Gaming Jamie Soo P.21 June headline GGR down 8.5% YoY; sets a new 5-yr record low Korea: share prices and Daiwa recommendation trends P.23 Daiwa’s Banner Products P.24 Analysts’ company visits P.25 Rating and target-price information P.26 Recently published reports P.27 Company Roadshows Date Company Event Venue 27 Jun - 1 Jul Samsung Electro-Mechanics (SEMCO) (009150 KS) NDR US 29 Jun - 1 Jul Fraser Centrepoint Limited (FCL SP) NDR EU 5 Jul China Titans Energy (2188) Group Luncheon HK 7-8 Jul Link REIT (823 HK) NDR Tokyo 18-21Jul Gamuda Berhad (GAM MK) NDR EU 26 Jul Incitec Pivot (IPL AU) NDR Tokyo 27 Jul HKEI (2638 HK) NDR HK 28-29 Jul China Water Affairs (855 HK) NDR Tokyo 1 Aug CKI / Power Assets (1038 HK/ 6 HK) NDR HK 3-5 Aug Delta Electronics (DELTA TB) NDR EU 4 Aug Nine Dragons Paper (2689 HK) Group Luncheon HK 4 Aug Nine Dragons Paper (2689 HK) Group Luncheon (VC) SG 23 Aug SITC (1308 HK) NDR HK 25 Aug Canvest Environmental (1381 HK) NDR HK 29-30 Aug Xtep (1368 HK) NDR US 23 Sep CSL Limited (CSL AU) NDR Tokyo Daiwa Asian Events Date Company Venue 19-Aug SG 8-11 Nov Daiwa Investment Conference Hong Kong 2016 HK 27 Feb-3 Mar 2017Daiwa Investment Conference Tokyo 2017 Tokyo Source: Daiwa Regional indices Performance chg (%) EPS growth(%) PER (x) Market 1D 1M YTD 16E 17E16E17ETPX 0.7 (7.9) (18.9) 16.1 9.1 13.2 12.1 HSCEI 1.7 0.1 (9.8) (3.5) 5.9 6.3 6.0 HSI 1.8 0.2 (5.1) (0.7) 9.6 11.0 10.1 KOSPI 0.9 0.2 1.3 24.3 9.3 10.9 10.0 TWSE 0.8 1.6 4.8 (0.6) 10.4 13.9 12.8 SENSEX*0.5 1.6 3.9 13.5 18.1 18.3** 15.5** FSSTI 0.2 2.0 (1.3) (2.2) 5.0 12.7 12.1 FBMKLCI*(0.5) 1.2 (2.7) (0.5) 8.5 16.2** 15.0** SET*0.2 2.1 12.2 7.7 13.5 15.2** 13.4** PCOMP*0.4 4.4 12.6 7.4 9.9 20.2** 18.3** JCI*(0.9) 2.7 8.2 7.8 13.3 16.2** 14.3** AS51 0.3 (1.4) (0.9)