Asia Pacific Daily

Asia Pacific Daily See important disclosures, including any required research certifications, beginning on page 26. 17 December 2015 Other research Analyst Rating Page China Autos – PV Weekly Monitor Kelvin Lau Neutral P.2 1-11 December: sales growth slower, but still healthy S1 Corporation (012750 KS) Thomas Y. Kwon Hold P.3 A seasoned player, but already fairly valued Teco Electric and Machinery (1504 TT) Christine Wang No Rating P.6 Improving business outlook for 2016 KCE Electronics Pcl (KCE TB) Chak Reungsinpinya Buy P.8 Full steam ahead Macro research Indonesia economy Fakhrul Fulvian P.9 November foreign trade Kinouchi’s Technical Tips for Institutions Eiji Kinouchi P.10 Japan likely to outperform during US tightening cycle US Data Review Michael Moran P.11 Housing Starts Euro wrap-up Chris Scicluna P.13 Overview Memos – quick updates Beijing Enterprises Water (371 HK) Dennis Ip P.15 Clarification of 15 Dec WSJ article Korea: share prices and Daiwa recommendation trends P.18 Daiwa’s Banner Products P.19 Analysts’ company visits P.20 Rating and target-price information P.21 Recently published reports P.22 Company Roadshows Date Company Event Venue 16-17 Dec CJ Korea Expree (000120 KS) NDR Tokyo 16 Dec Beijing Enterprises Water (371 HK) NDR Seoul 17-18 Dec Beijing Enterprises Water (371 HK) NDR Tokyo 5 Jan China Aircraft Leasing (1848 HK) NDR SG 15 Jan Siloam Int'l Hospitals (SILO IJ) NDR US 15 Jan Nine Dragons Paper (2689 HK) Group Luncheon HK 15 Jan Nine Dragons Paper (2689 HK) Group Luncheon (VC) SG 28 Jan Airports of Thailand (AOT TB) NDR SG 1-3 Feb Bank Pembangunan Daerah Jawa Timur Tbk PT (BJTM IJ) NDR EU Daiwa Asian Events Date Company Venue 5-8 Jan 2016 Daiwa P.U.R.E. Energy Conference HK 28-29 Jan 2016 Daiwa Philippine Corporate Day Tokyo 2016 Tokyo 29 Feb-4 Mar 2016Daiwa Investment Conference Tokyo 2016 Tokyo Source: Daiwa Regional indices Performance chg (%) EPS growth(%) PER (x) Market 1D 1M YTD 15E 16E15E16ETPX 2.5 (2.0) 9.5 17.6 8.7 15.3 14.0 HSCEI 2.1 (4.4) (20.4) 2.2 2.4 6.2 6.1 HSI 2.0 (1.4) (8.1) (2.2) 4.5 10.5 10.1 KOSPI 1.9 1.4 2.8 32.1 6.1 11.1 10.5 TWSE 1.4 (1.3) (12.1) 1.6 5.6 12.9 12.3 SENSEX*0.7 (1.0) (7.3) 8.0 19.2 18.9** 15.9** FSSTI 0.9 (2.6) (15.6) (2.3) 5.1 12.6 12.0 FBMKLCI*0.7 (1.3) (7.2) (3.7) 7.0 16.5** 15.4** SET*(0.1) (6.4) (13.3) 5.3 12.1 13.4** 11.9** PCOMP*1.6 0.5 (5.8) 7.0 11.4 19.1** 17.1** JCI*1.7 0.9 (14.2) (6.4) 10.2 15.6** 14.2** AS51 2.4 0.5 (7.1) (4.5) 7.4 15.3 14.2 Source: Thomson Reuters *Valuation based on MSCI Universe **MSCI index priced as of 15 Dec Asia Pacific Daily | 1 See important disclosures, including any required research certifications, beginning on page 9 China Consumer Discretionary What's new: China PV sales data for 1-11 December 2015 was released on 16 December by the China Auto Market (CAM). Sales growth for the period was up by 10% YoY. This was slower than the 20% YoY growth in November, but stronger than the 9% rise in October and the 4% YoY rise in September. Key highlights: Beijing Hyundai’s average daily sales declined by 35% YoY, mainly due to weak sedan sales and a larger base from last year. However, this weakness was partially offset by Beijing Benz and Beijing Brand. For GWM, its SUV segment only registered 25% YoY growth compared with 61% YoY growth in the overall China SUV segment. Meanwhile, average daily sales in the China sedan market dropped by 6% YoY as against 3% YoY growth in November. What we recommend: A China PV sales-volume recovery is now more pronounced to