Asia Pacific Daily

Asia Pacific Daily See important disclosures, including any required research certifications, beginning on page 25. 22 September 2015 Major changes Analyst Rating Page Singapore Oil Services Sector Royston Tan Negative P.2 Not yet calling the bottom Ezion Holdings (EZI SP) Royston Tan Buy P.3 Still the best of the lot Target price ↓24.2% to SGD0.940 Other research Goodbaby International (1086 HK) Carlton Lai Buy P.6 Robust earnings growth ahead Lafarge Malaysia (LMC MK) Sharifah Farah Hold P.9 Merging with Holcim Indonesia Retail Bagus Adi Yoga Prawira P.10 Retail walkabout Hero Supermarket (HERO IJ) Bagus Adi Yoga Prawira Reduce P.11 Public expose takeaways: Nothing ground-breaking Macro research US Data Review Michael Moran P.12 Existing Home Sales Memos – quick updates Asia Tech Sector Rick Hsu P.13 Dialog Semi to acquire Atmel? We see no impact near term, but some long-term concerns Korea Cosmetics Sector Iris Park P.15 Positive news flooding in Daiwa’s Banner Products P.18 Analysts’ company visits P.19 Rating and target-price information P.20 Recently published reports P.21 Company Roadshows Date Company Event Venue 21-25 Sep L'Arc Macau (Not Listed) NDR EU 21-25 Sep Stella International (1836 HK) NDR EU 22-23 Sep Thai Union Frozen Products Pcl (TUF TB) NDR HK 24-25 Sep CITIC Telecom (1883 HK) NDR Tokyo 25 Sep NagaCorp (3918 HK) NDR EU 29-30 Sep Central Plaza Hotel PCL (CENTEL TB) NDR Tokyo 7-8 Oct PTT PCL (PTT TB) NDR SG 13-14 Oct CITIC Telecom (1883 HK) NDR US 13-14 Oct CALC (1848 HK) NDR Tokyo 14-15 Oct Yongda Auto (3669 HK) NDR Tokyo 15-16 Oct Xtep (1368 HK) NDR Tokyo 21-22 Oct SM Investments/SM Prime (SM PM/SMPH PM) NDR Tokyo 4-6 Nov CITIC Telecom (1883 HK) NDR EU 9 Nov HKEx (388 HK) NDR Tokyo Daiwa Asian Events Date Company Venue 28-29 Sep Daiwa ASEAN Conference - Daiwa-AffinHwang: Best of Malaysia Tokyo 2015Tokyo 30 Sep Daiwa ASEAN Conference - Daiwa-AffinHwang: Malaysia Corporate Day SG 6 Oct Daiwa ASEAN Conference - Daiwa-Bahana-IDX: Best of Indonesia 2015 SG 8-9 Oct Daiwa ASEAN Conference - Daiwa-Bahana-IDX: Best of Indonesia 2015 Tokyo 21-22 Oct SM Group Corporate Day Tokyo 2015 Tokyo 10-13 Nov Daiwa Investment Conference Hong Kong 2015 HK 29 Feb- 4 Mar 20 Daiwa Investment Conference Tokyo 2016 Tokyo Source: Daiwa Regional indices Performance chg (%) EPS growth(%) PER (x) Market 1D 1M YTD 15E 16E15E16ETPX (2.0) (7.0) 3.9 20.4 8.1 13.9 12.8 HSCEI (1.3) (2.9) (17.4) 3.1 5.2 6.2 5.9 HSI (0.7) (2.9) (7.8) (1.5) 7.0 10.3 9.6 KOSPI (1.6) 4.7 2.6 33.0 7.7 10.8 10.0 TWSE (1.8) 6.7 (10.7) 4.7 5.9 12.4 11.7 SENSEX*(0.1) (4.3) (4.8) 11.4 19.8 18.8** 15.7** FSSTI 0.1 (3.0) (14.3) (0.1) 7.9 12.1 11.2 FBMKLCI*(1.8) 4.1 (6.9) (2.5) 9.7 16.0** 14.6** SET*0.2 2.0 (7.0) 8.6 12.7 13.9** 12.3** PCOMP*(0.6) (2.6) (1.9) 8.4 11.9 19.5** 17.4** JCI*(0.1) 0.9 (16.3) (3.5) 12.6 13.9** 12.3** AS51 (2.0) (2.8) (6.4) (3.0) 8.4 14.6 13.4 Source: Thomson Reuters *Valuation based on MSCI Universe **MSCI index priced as of 18 Sep See important disclosures, including any required research certifications, beginning on page 54 Singapore Energy Investment case: The Singapore Oil Services Sector’s leading indicators — the oil price and E&P spending — are not yet indicating a bottom. Even if these indicators were to show an uptick, we believe that sector fundamentals are being overshadowed by an oversupply issue that must be addressed before a sustainable earnings recovery can take hold. In such a scenario, we would look to be positioned in Ezion (EZI SP, SGD 0.715, Buy [1]) and Pacific Radiance (PACRA SP, SGD0.335, Hold [3]), while avoiding Ezra (EZRA SP, SGD0.124, Underperform [4]). Catalysts: Demand for OSVs