august 06, 2014 hk/china consumer /hk staples underweight ... · outside of our coverage, tenwow,...
TRANSCRIPT
August 06, 2014
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SEE PAGE 11 FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATIONS
HK/China Consumer Staples
Marketing feedback; 1H14 preview We met w/ 100+ investors and note the growing interest in
revisiting the space given better sales/earnings growth
expectations for 2H14 and sector’s underperformance YTD.
We forecast names under our coverage to report ave.3% NPAT
growth YoY. EBIT margin upside should be capped by fierce
competition despite better product mix and soft input cost.
Our Top Pick is Tingyi followed by Hengan and Want Want. We
like Ajisen and China Foods among smaller caps. Reiterate
SELL on Mengniu given imminent threat to its Milk Deluxe.
Biostime’s risk-to-reward profile doesn’t yet justify a BUY.
What’s New From our recent global marketing, we found most investors are still
underweight the sector but are contemplating in getting back in,
while some die-hard bears view this as a structural de-rating story
given the unexciting earnings growth outlook.
Key topics include: i) market-share war between Tingyi/UPC; ii)
Biostime’s potential strong comeback in 2H14; iii) SCA/Vinda’s
combined threat to Hengan; and iv) Want Want’s growth
bottleneck. Our SELL call on Mengniu and BUY on Tingyi received
plenty of interest.
Outside of our coverage, Tenwow, Tsingtao and upstream dairy
names received the most interest. We reckon worries over a
potential raw milk oversupply in the near future are building up.
What’s Our View We believe the market has been overly bearish on the instant
noodles space and foresee years of irrational market behaviour
ahead. Nonetheless, we see sector inflection point should appear
in 2015F as UPC will eventually just focus on its core products.
We also note overly positive expectations have been built in to
Mengniu on the apparent structural mix upgrade trend and industry
consolidation. Yet poor execution, sharp slowdown in growth and
margin pressure on its Milk Deluxe don’t seem to be a concern yet.
Analysts
YTD share price return
Security Name 1M
%Chg 3M
%Chg 6M
%Chg 12M
%Chg YTD
%Chg
Ajisen 6.52 (5.07) (24.30) (11.19) (21.26)
Biostime (10.77) (27.19) (43.29) (12.97) (45.47)
China Foods 0.70 10.42 9.58 (0.35) (12.80)
China Mengniu 7.25 (5.28) 6.95 17.63 3.29
CRE 9.95 8.45 3.49 (0.84) (7.77)
Goodbaby 1.58 (9.60) (0.77) 9.66 (8.75)
Hengan 0.79 2.77 0.36 (5.18) (8.86)
Tingyi 1.35 5.40 14.42 15.25 (0.22)
UPC 9.34 9.19 (3.35) (5.90) (14.40)
Vinda 13.31 13.51 8.19 51.17 0.78
Want Want (2.21) (10.89) 4.11 4.72 (4.66)
MSCI China Con. staples
2.71 (1.96) 2.28 (0.71) (7.62)
Source: Bloomberg, Maybank KE
(Unchanged)UNDERWEIGHT
Jacqueline Ko, CFA
(852) 2268-0633
Benjamin Ho
(852) 2268-0632
Stock Mkt cap Rating Price TP Upside
(USD'm) (LC) (LC) (%) 14E 15E 14E 15E 14E 15E
Want Want China 18,154.8 Buy 10.64 13.18 24 23.8 19.9 8.3 7.3 2.9 3.4
Tingyi 16,221.0 Buy 22.45 29.60 32 25.7 20.6 3.7 3.3 1.9 2.4
Hengan Int'l 13,194.0 Buy 83.35 102.60 23 23.5 19.1 5.5 4.8 2.5 3.0
China Mengniu 9,526.5 Sell 37.70 29.35 (22) 33.7 27.4 2.6 2.5 0.7 0.8
CRE 7,365.2 Sell 23.75 18.70 (21) 37.5 26.0 1.3 1.3 1.1 1.5
Uni-President China 3,589.2 Hold 6.44 5.77 (10) 50.2 30.7 1.9 1.8 0.4 0.7
Biostime 2,908.5 Sell 37.30 33.10 (11) 18.5 16.1 6.2 5.5 3.8 4.4
Vinda Int'l 1,667.0 Hold 12.94 11.84 (9) 24.4 19.9 2.4 2.2 1.1 1.3
China Foods 1,032.3 Buy 2.86 3.80 33 866.7 22.5 1.3 1.3 0.0 1.8
Ajisen (China) 896.6 Buy 6.37 8.75 37 20.2 16.6 2.0 1.9 3.2 3.9
Goodbaby 500.7 Sell 3.86 3.54 (8) 22.9 18.9 1.8 1.7 1.3 1.6
P/E (x) P/B (x) Dividend yld (%)
August 6, 2014 2
China/HK Consumer Staples
Three FAQs during our marketing trip
In general, investors are puzzled by the slow volume growth across the
board, despite upgrades in product mixes; they are also keen to
understand what would trigger an up-tick in consumption and for industry
players to be more rational in competition
#1 Contrarian SELL on well-loved Biostime & Mengniu Our SELL on Mengniu is built on the thesis over 50% of its sales come from a
shrinking consumption category (i.e. UHT milk) while competition in high-
end UHT milk is coming from both new domestic brands and from
importers (imports are expected to account for 15-20% of high-end UHT
milk sales by end-FY14F). We believe margin pressure on Mengniu’s Milk
Deluxe (30% of its UHT milk sales, 30-40% GPM) and a sharp slowdown in its
sales growth in the near term will raise concerns over its EBIT and ROE
enhancement (FY14 deluxe milk sales growth at 20%+ vs ~40% YoY growth
in FY13).
For Biostime, we are still hesitant to bottom-fish at the current level as
the 2H14 earnings outlook remains uncertain amid the company’s
restructuring, while some worrying industry trends have also emerged, ie,
infant milk formula(“IMF”) industry prices and margins may fall, keen
competition in 100% imported products and shift in growth to cities below
tier three and online, which may structurally be negative for the company.
In addition, according to AC Nielson, 6M14 IMF sales volume/value were
both down 7%/4% YoY in China. Meanwhile, the number of applicants for
the second child in 5M14 was less than originally expected. In contrast,
investors believe Mengniu will be the biggest winner amid the government-
led industry consolidation, while Biostime’s good track record and smart
management warrant a higher premium.
#2 Tingyi/UPC- zero-sum game never ends? We learned that the majority of investors are bearish on Tingyi/UPC with
the perception of stagnant sales growth and irrational competitive
behaviours. We note the market has assumed ongoing free sausage
offerings for 2014-2015F, as UPC has a bigger war-chest post rights issues.
Our BUY on Tingyi and recent upgrade of UPC to HOLD are based on the
assumption UPC will eventually re-direct its focus and limited resources on
its core products, amid its widening market share gap with Tingyi.
Therefore, industry wide profitability should reach an inflection point and
reverse upward in FY15F.
Meanwhile, we believe diversifying consumer preference in the beverage
sector implies more room for growth for different companies. For Tingyi,
we are even more positive on its prospects, as UPC is no longer a threat
amid slower product innovation and widening market share gap. Our
positive call on Tingyi is based on: i) incremental earnings contribution
from Pepsi (from breakeven in FY13 to 6% EBIT margin in FY16F, which is
benchmarked to China Foods’ Coke bottling business); and ii) SG&A to
trend down YoY over FY14-16F on enhanced scale.
August 6, 2014 3
China/HK Consumer Staples
#3 Want Want & Hengan- how long can star products grow?
We believe market concerns over Want Want China (WWC)’s growth
bottleneck were amplified by the disappointing Hot-Kid milk sales growth
YTD. Meanwhile, substitution risk for the rice crackers is also among the
most popular discussion topics. Investors are keen to gauge how long WWC
can maintain its superior ROE and sector-high NPM.
As for Hengan, we noted investors are cautious on how long it can maintain
its leadership position in the sanitary napkin area as Unicharm and Kotex
are becoming more aggressive. Investors are also concerned about
Hengan’s so-called ‘stuck-in-the-middle’ disposable diaper market
positioning. On top of that, investors believe consumers have rather low
brand loyalty in the tissue segment and therefore Hengan’s leading market
share may not translate into above-sector profitability and sales growth.
.
1H14 results preview: uninspiring
Strong results in sight: Mengniu, Tingyi Unsurprisingly, we believe Mengniu’s interim NPAT growth will be strong at
20%+ YoY on both an organic growth perspective as well as contributions
from Yashili (1H13: Nil). For Tingyi, we project core profit growth at ~40%
YoY thanks to beverage margin expansion and flat SG&A ratio YoY. Keys to
watch are: i) the growth trend & margins for Mengniu’s high-end products;
progress of its JV with Danone; ii) Tingyi’s SG&A operating leverage to be
more recurring and reverse the trend of the past several years; and further
integration of its Pepsi bottling business.
Lacklustre growth: Ajisen, Hengan, Want Want China We project 5-7% NPAT growth YoY for Ajisen and Want Want China (WWC)
given lacklustre sales (we expect WWC to be further affected by high NZ
milk powder cost on timing mismatch). For Hengan, we expect profit (ex-
forex loss) to grow 5% YoY on strong sanitary napkin sales and largely
disciplined A&P (tissue segment’s A&P largely stable HoH in 1H14); its
NPAT however fell YoY due to forex loss, which is not yet in our forecast.
Keys to watch: i) Ajisen’s new strategies in the pipeline and its execution
progress; ii) WWC’s recent Hot-Kid milk sales trend post larger marketing
effort in May; and iii) Hengan and industry capacity plan post-2015.
1H14 NPAT growth estimates (YoY,%)
Source: Maybank Kim Eng estimates
(40) (20) 0 20 40 60
WWC
Tingyi
UPC(ex-disposal)
Hengan(ex-FX loss)
Mengniu
CRE
Biostime
Goodbaby
Ajisen
August 6, 2014 4
China/HK Consumer Staples
-ve growth: Biostime, China Foods, CRE, Goodbaby; UPC China Food (CF)’s loss is likely to be widely anticipated given struggling
wine sales and sector-specific trade down. For Biostime, the consensus
base-case scenario is a 15% YoY drop in earnings on weak sales, GPM
erosion and surging opex, while we believe risk is tilted to the downside.
For UPC, we forecast ~30% YoY drop in core profit (ex-disposal gain in
1H13) as losses of the noodles unit widen. For CRE, we expect 10% YoY
NPAT decline given negative SSSG-led retail operating deleveraging and
food unit loss despite solid beer and beverage sales/margins. For
Goodbaby, we foresee merely 5% profit growth as it’s losing market share
in China. Keys to watch: i) the latest progress of Biostime’s internal
restructuring; ii) possibility of turnaround for CF in 2015F; iii) UPC’s new
product pipeline and competitive stance; iv) CRE’s integration effort for
Tesco and ways to combat e-commerce threat; v) and Goodbaby’s strategy
to resume sector growth in China and mitigate potential loss of Dorel’s
orders.
1H14 earnings preview summary
Company Reporting
Date Expectation(NPAT growth, YoY) Comments
Ajisen TBC 5% (46% of FY14F KE est.) SSSG bottomed out in April and consistently picked up; has a number of new products/cost-savings strategies in the pipeline.
Goodbaby TBC 5% (55% of FY14F KE est) Strong exports, but weak domestic sales due to market-share loss; major client Dorel may pull orders from Goodbaby after acquiring Lerado’s manufacturing capacity in China.
Biostime 19th Aug -20% (38% of FY14F KE est) 1H14 sales growth mostly from new products launched in 2H13; flagship IMF brand may see flat/ negative sales growth YoY; Co. hired additional 20-30% headcounts in 6M14. Keys to watch: i) low-end IMF product launch in 2H14F; ii) sales functions restructuring progress.
CRE TBC -11% (60% of FY14F KE est) Tesco’s integration kicked in since early June. Low earnings visibility on its turnaround. 2Q14 SSSG should remain in negative territory based on our channel checks. Strong beer sales volume (+high single to low teens YoY) in 1H14 with ongoing ‘premiumization’ trend. Good beverage (bottled water) sales. Food unit remains loss-making amid restructuring.
Mengniu TBC 22% (53% of FY14F KE est) Low teens sales volume growth for organic business. GPM (ex-Yashili) expanded moderately by 30bps YoY on mix upgrade. Largely flat SG&A YoY. Margin pressure for its Milk Deluxe has emerged from 2Q14 onwards amid intensified competition.
Hengan TBC 5%(ex-FX loss)((45% of FY14F KE est)
Strong sanitary napkins sales. Tissue A&P HoH stabilized. GPM enhanced on mix upgrade across the board but EBIT margin slightly contracted as tissue A&P YoY still increased given low base.
UPC 8th Aug -30% (60% of FY14F KE est) Sluggish top-line growth. Enlarging noodles segment loss.
Tingyi 18th Aug 45% (45% of FY14F KE est) Sluggish top-line growth in 2Q14. Beverage margin expansion observed in 1Q14 will continue. Control on SG&A should surprise on the upside and reverse previous years’ trend.
WWC 26th Aug 7% (43% of FY14F KE est) Flattish/negative volume growth in Hot-Kid milk in 1H14. Destocking and larger sales effort in 2Q14. Timing mismatch on using high-cost inventory dragged GPM.
Source: Company data, Maybank Kim Eng
KE vs. consensus FY14F NPAT (%)
Source: Maybank Kim Eng estimates, Bloomberg
(30) (20) (10) 0 10 20 30
WWC
Tingyi
UPC
Hengan
Mengniu
CRE
Biostime
Goodbaby
Ajisen
August 6, 2014 5
China/HK Consumer Staples
Figure 1: Our FY14-16 EPS forecasts vs. consensus
FY14F EPS FY15F EPS FY16F EPS
Company
KE Mkt Devi % KE Mkt Devi % KE Mkt Devi %
Want Want 151 HK USD 0.058 0.06 (3.33) 0.069 0.07 (1.43) 0.079 0.07 12.86
Tingyi 322 HK USD 0.113 0.094 20.21 0.141 0.11 28.18 0.191 0.12 59.17
UPC 220 HK CNY 0.102 0.13 (21.54) 0.167 0.145 15.17 0.190 0.165 15.15
Hengan 1044 HK HKD 3.54 3.18 11.32 4.35 3.93 10.69 5.32 4.6 15.65
Mengniu 2319 HK CNY 0.89 1.08 (17.59) 1.10 1.38 (20.29) 1.23 1.66 (25.90)
China Foods 506 HK HKD 0.00 (0.07) (100.00) 0.13 0.07 85.71 0.18 0.12 50.00
CRE 291 HK HKD 0.63 0.65 (3.08) 0.91 0.80 13.75 1.08 1.03 4.85
Biostime 1112 HK CNY 1.66 1.60 3.75 2.05 2.00 2.50 2.42 2.38 1.68
Goodbaby 1086 HK HKD 0.17 0.20 (15.00) 0.20 0.27 (25.93) 0.24 0.32 (25.00)
Vinda 3331 HK HKD 0.53 0.50 6.00 0.65 0.62 4.84 0.89 0.71 25.35
Ajisen 538 HK HKD 0.32 0.30 6.67 0.38 0.36 5.56 0.49 0.44 11.36
Source: Company data, Maybank Kim Eng estimates
Figure 2: YTD relative performance of MSCI Staples vs. MSCI China
Source: Bloomberg, Maybank Kim Eng
Figure 3: YTD relative performance of MSCI China Sta. vs. MSCI China Dis.
Source: Bloomberg, Maybank Kim Eng
0
20
40
60
80
100
120
140
160
Jan 08 Oct 08 Jul 09 Apr 10 Jan 11 Oct 11 Jul 12 Apr 13 Jan 14
(Jan 2008 = 100pts)
MSCI China MSCI China Cons. Staples
0
20
40
60
80
100
120
140
160
Jan 08 Oct 08 Jul 09 Apr 10 Jan 11 Oct 11 Jul 12 Apr 13 Jan 14
(Jan 2008 = 100pts)
MSCI China Cons. Staples MSCI China Cons. Discr
MSCI Cons. Staples 12m rolling fwd PER
Source: Bloomberg, Maybank Kim Eng
MSCI Con. Stap 12m rolling fwd EV/EBITDA
Source: Bloomberg, Maybank Kim Eng
5
15
25
35
Jan 08Feb 09Mar 10Apr 11May 12Jun 13Jul 14
(x) PE Mean
+1SD -1SD
5
10
15
20
Jan 08Feb 09Mar 10Apr 11May 12Jun 13Jul 14
(x) EV/EBITDA Mean
+1SD -1SD
August 6, 2014 6
China/HK Consumer Staples
Figure 4: 12m rolling forward PER- MSCI China Staples & Discretionary
Source: Bloomberg, Maybank Kim Eng
Figure 5: 12m rolling forward EV/EBITDA- MSCI China Staples & Discretionary
Source: Bloomberg, Maybank Kim Eng
5
10
15
20
25
30
35
Jan 08 Oct 08 Jul 09 Apr 10 Jan 11 Oct 11 Jul 12 Apr 13 Jan 14
(x) MSCI China Cons. Disc. MSCI China Cons. Sta.
5
7
9
11
13
15
17
Jan 08 Oct 08 Jul 09 Apr 10 Jan 11 Oct 11 Jul 12 Apr 13 Jan 14
(x) MSCI China Cons. Disc. MSCI China Cons. Sta.
August 6, 2014 7
China/HK Consumer Staples
Appendix 1: 12m rolling forward PER Want Want China Tingyi Hengan
Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng
China Mengniu CRE UPC
Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng
Biostime Vinda China Foods
N/A
Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng
Ajisen Goodbaby
Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng
-
2
4
6
8
10
12
14
16
18
Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14
15.4x
20.1x
24.8x
28.6x
32.3x
-
5
10
15
20
25
30
35
40
Jan 04 Jan 06 Jan 08 Jan 10 Jan 12 Jan 14
4.6x
14.6x
24.7x
33.4x
42.2x
40
60
80
100
120
140
160
Jan 10 Jan 11 Jan 12 Jan 13 Jan 14
22.2x
24.4x
26.6x
31.5x
36.4x
-
5
10
15
20
25
30
35
40
45
50
Dec 04 Jan 07 Feb 09 Mar 11 Apr 13
9x
11x
14x
24x
34x
-
5
10
15
20
25
30
35
40
45
50
Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14
15.7x
25.4x
35.1x
41.7x
48.4x
-
2
4
6
8
10
12
14
16
18
20
Jan 08 Apr 09 Jul 10 Oct 11 Jan 13 Apr 14
7.1x
15.7x
24.4x
38.5x
52.7x
-
10
20
30
40
50
60
70
80
90
Dec 10 Feb 12 Apr 13 Jun 14
7.3x
12.9x
18.5x
31.4x
44.3x
-
2
4
6
8
10
12
14
16
18
Jan 08 Aug 09 Mar 11 Oct 12 May 14
4.0x
10.1x
16.1x
22.3x
28.6x
-
5
10
15
20
25
30
Jan 08 Aug 09 Mar 11 Oct 12 May 14
8.8x
16.8x
24.7x
46.1x
67.6x
-
1
2
3
4
5
6
7
Dec 10 Oct 11 Aug 12 Jun 13 Apr 14
9.7x
14.2x
18.7x
24.8x
30.8x
August 6, 2014 8
China/HK Consumer Staples
Appendix 2: 12m rolling forward PBR Want Want China Tingyi Hengan
Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng
China Mengniu CRE UPC
Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng
Biostime Vinda China Foods
Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng
Ajisen Goodbaby
Source: Factset, Maybank Kim Eng Source: Factset, Maybank Kim Eng
-
2
4
6
8
10
12
14
16
Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14
4.9x
6.6x
8.4x
9.4x
10.4x
-
5
10
15
20
25
30
35
Jan 04 Jan 06 Jan 08 Jan 10 Jan 12 Jan 14
1.2x
2.6x
4.1x
5.4x
6.6x
40
60
80
100
120
140
160
Jan 10 Jan 11 Jan 12 Jan 13 Jan 14
4.5x
5.3x
6.1x
7.0x
8.0x
-
10
20
30
40
50
60
70
80
90
Dec 04 Jan 07 Feb 09 Mar 11 Apr 13
1.9x
2.4x
2.8x
4.1x
5.4x
-
5
10
15
20
25
30
35
40
45
50
Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14
1.0x
1.4x
1.8x
2.1x
2.3x
-
2
4
6
8
10
12
Jan 08Jan 09Jan 10Jan 11Jan 12Jan 13Jan 14
.7x
1.4x
2.0x
2.7x
3.4x
-
10
20
30
40
50
60
70
80
90
Dec 10 Aug 11 Apr 12 Dec 12 Aug 13 Apr 14
2.3x
4.0x
5.7x
10.3x
14.9x
-
5
10
15
20
25
Jan 08Feb 09Mar 10Apr 11May 12Jun 13 Jul 14
.7x
1.4x
2.0x
2.7x
3.4x
-
5
10
15
20
25
Dec 05 Dec 07 Dec 09 Dec 11 Dec 13
.9x
1.7x 2.4x
4.0x
5.5x
-
5
10
15
20
25
Jan 08Feb 09Mar 10Apr 11May 12Jun 13 Jul 14
1.2x
2.2x
3.1x
5.0x
6.8x
-
1
2
3
4
5
6
7
8
Dec 10 Jan 12 Feb 13 Mar 14
.9x
1.3x
1.7x
2.5x
3.2x
C
hin
a/H
K C
onsu
mer S
taple
s
A
ugust 6
, 2014
9
Figure 6: China consumer staples sector valuation comparison
Market 3m Px Performance PE P/B ROE ROA EV/EBITDA Dividend Yield EPS FY14-16F
CAGR PEG GPM NPM Net
Gearing
Price Cap ADTV 1m 3m FY14F FY15F FY14F FY15F FY14F FY15F FY14F FY15F FY14F FY15F FY14F FY15F 3m chg EPS
FY14F FY14F 2013
Company Ticker (lcy) (USDm) (USD) (%) (%) (x) (x) (x) (x) (%) (%) (%) (%) (x) (x) (%) (%) (%) (%) (x) (%) (%) (%)
Food Retailers
Sun Art Retail Group 6808 HK 9.48 11,669.01 8.64 5.57 (6.69) 23.84 20.94 3.56 3.24 15.59 16.27 15.59 16.27 9.71 8.53 2.05 2.33 (1.55) 8.86 2.69 21.63 3.15 Net cash
China Res Ent 291 HK 23.35 7,268.13 5.68 8.10 5.18 33.07 27.37 1.19 1.15 3.87 4.62 3.87 4.62 8.31 7.21 1.08 1.31 (10.86) 13.09 2.53 25.16 1.00 2.52
Wumart Stores Inc 1025 HK 6.99 1,155.61 3.43 12.74 (4.12) 13.30 11.88 1.78 1.66 13.22 13.97 13.22 13.97 4.62 4.19 3.64 4.02 (3.90) 4.27 3.12 17.23 2.55 Net cash
Lianhua Supermarket 980 HK 4.19 605.30 0.62 (4.99) (1.64) 20.88 16.54 1.12 1.08 4.37 5.85 4.37 5.85 n.a. n.a. 2.13 2.61 (5.88) 10.86 1.92 13.75 0.48 Net cash
Average 26.41 22.56 2.56 2.36 11.01 11.75 11.01 11.75 8.65 7.57 1.80 2.08 (5.08) 10.15 2.63 22.39 2.28
F&B Manufacturers
Tingyi 322 HK 22.25 16,076.32 9.76 0.45 2.77 30.54 25.18 5.07 4.54 16.93 18.52 16.93 18.52 11.89 10.12 1.60 1.95 (1.05) 11.98 2.55 30.80 4.31 11.13
Want Want China 151 HK 10.72 18,252.76 23.52 (1.47) (11.99) 23.85 20.64 8.18 6.95 36.38 36.02 36.38 36.02 15.95 13.66 2.75 3.11 (1.69) 8.95 2.67 41.40 17.53 Net cash
China Yurun Food 1068 HK 3.78 889.02 2.53 2.72 1.89 (16.95) 118.13 0.43 0.43 (0.82) 1.55 (0.82) 1.55 11.42 7.39 0.61 1.15 32.74 (191.89) 0.09 6.43 (0.92) 37.59
China Mengniu Dairy 2319 HK 38.00 9,601.95 28.26 8.11 (7.09) 28.21 22.68 2.88 2.59 11.84 12.15 11.84 12.15 16.30 13.70 0.81 1.03 (2.81) 14.21 1.99 28.38 4.04 16.57
China Modern Dairy 1117 HK 3.58 2,229.88 6.57 7.19 4.37 14.94 11.80 2.12 1.81 14.88 16.29 14.88 16.29 12.59 10.47 0.63 0.97 3.24 16.63 0.90 41.11 19.82 78.14
Yashili International 1230 HK 2.74 1,258.32 1.28 (8.05) (28.83) 21.01 17.62 2.36 2.22 10.41 11.85 10.41 11.85 13.49 10.41 2.08 2.66 (27.78) 12.48 1.68 52.03 8.97 Net cash
China Foods Ltd 506 HK 2.89 1,043.08 1.30 1.76 9.47 (222.31) 33.22 1.32 1.27 (0.80) 3.92 (0.80) 3.92 14.16 9.39 0.14 0.63 (128.26) (312.08) 0.71 21.36 (0.28) 20.32
Tsingtao Brewery Co 168 HK 64.00 10,172.47 6.57 5.00 12.08 32.44 27.66 4.32 3.90 14.35 15.05 14.35 15.05 16.49 14.08 0.95 1.14 (5.07) 7.86 4.13 35.80 6.57 Net cash
China Huiyuan Juice 1886 HK 3.48 979.89 2.50 (6.95) (34.09) 19.14 12.44 0.56 0.65 3.74 5.25 3.74 5.25 12.71 9.22 0.36 1.28 (22.46) 21.95 0.87 35.10 6.82 34.37
Biostime Int’l 1112 HK 37.20 2,900.62 8.74 (11.00) (26.82) 17.12 13.76 6.24 5.19 38.90 41.34 38.90 41.34 11.19 8.89 3.81 4.79 (9.97) 13.67 1.25 64.20 19.16 Net cash
Uni-President China 220 HK 6.42 3,578.02 4.66 9.00 7.97 32.40 26.12 2.08 1.96 6.96 7.48 6.96 7.48 13.72 11.51 0.64 0.81 (10.23) 12.00 2.70 33.52 2.49 56.37
China Huishan Dairy 6863 HK 1.79 3,327.68 11.06 (1.65) (2.72) 11.89 8.92 1.43 1.29 12.83 15.08 12.83 15.08 8.99 6.85 1.76 2.33 (9.09) 17.37 0.68 59.60 35.13 42.63
Tenwow In’l 1219 HK 2.90 775.92 0.60 1.05 (9.09) 12.64 10.42 1.89 1.67 15.61 17.31 15.61 17.31 8.52 7.04 2.68 3.29 (0.54) 16.59 0.76 16.25 6.98 10.02
Yuanshengtai Dairy 1431 HK 1.33 670.78 1.86 0.76 0.76 9.22 7.02 0.91 0.80 10.08 12.01 10.08 12.01 4.27 3.21 0.00 0.00 (0.86) 17.80 0.52 43.03 37.57 Net cash
Changshouhua Food 1006 HK 7.16 529.89 0.35 (3.89) (7.61) 10.05 7.84 1.41 1.21 15.43 17.13 15.43 17.13 5.52 4.32 2.11 2.64 (1.73) 20.75 0.48 21.80 9.64 Net cash
Honworld Group 2226 HK 6.70 448.46 1.24 19.01 30.10 12.63 10.33 2.19 1.89 20.80 18.60 20.80 18.60 10.85 8.96 1.68 2.01 (7.03) 6.08 2.08 55.73 34.11 n.a.
Average 21.87 22.90 4.77 4.17 20.08 20.93 20.08 20.93 13.99 11.72 1.67 2.03 (5.25) 4.53 2.39 36.98 10.84
Household & Personal Care
Hengan Int’l 1044 HK 83.75 13,257.11 17.69 1.27 2.57 24.93 20.92 5.50 4.93 23.83 25.42 23.83 25.42 16.14 13.67 2.46 2.91 (4.03) 12.02 2.07 45.35 17.29 Net cash
Vinda Int’l Holdings 3331 HK 13.04 1,679.80 0.73 14.19 13.00 26.83 21.41 2.63 2.42 10.32 11.76 10.32 11.76 15.14 12.99 1.07 1.33 (16.06) 14.84 1.81 29.44 6.49 43.98
China Child Care 1259 HK 2.25 293.36 0.90 11.94 1.81 6.19 5.13 1.11 0.92 20.23 20.20 20.23 20.20 2.32 1.97 3.46 4.14 (6.45) 7.47 0.83 48.31 14.67 Net cash
Goodbaby Int’l 1086 HK 3.85 546.92 1.36 1.32 (9.20) 18.78 15.04 1.78 1.57 10.23 10.97 10.23 10.97 9.96 7.44 1.64 2.00 (5.53) 14.41 1.30 24.05 4.00 Net cash
Average 24.57 20.48 4.98 4.47 21.85 23.36 18.16 19.47 15.56 13.16 2.30 2.73 (5.41) 12.32 2.00 42.97 15.63
Restaurants
Ajisen China 538 HK 6.30 886.78 1.11 5.35 (4.57) 21.58 17.80 2.00 1.86 9.91 10.81 9.91 10.81 9.15 7.69 2.72 3.00 (7.01) 14.38 1.50 67.21 9.30 Net cash
Cafe De Coral 341 HK 27.45 2,050.70 1.02 2.62 12.50 23.40 20.86 4.04 3.81 18.22 19.52 18.22 19.52 13.29 11.89 3.10 3.49 (2.41) 8.30 2.82 14.95 8.80 Net cash
Fairwood Holdings 52 HK 16.66 271.01 0.21 2.59 4.65 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Net cash
Tsui Wah Holdings 1314 HK 3.16 572.79 1.51 (16.62) (19.59) 17.36 14.50 3.29 2.99 18.12 19.54 18.12 19.54 12.00 8.65 2.55 3.26 (14.55) 11.60 1.50 69.35 11.25 Net cash
Xiao Nan Guo Rest. 3666 HK 0.94 179.36 0.14 (17.54) (21.67) 74.95 14.99 1.39 1.30 1.66 8.59 1.66 8.59 7.50 4.48 0.40 2.25 25.00 104.88 0.71 66.60 1.06 Net cash
Future Bright 703 HK 4.06 363.72 0.89 9.14 10.03 16.05 12.30 2.34 1.95 17.17 17.67 17.17 17.67 11.01 8.90 1.39 1.82 0.00 16.20 0.99 35.67 18.88 Net cash
Tang Palace China 1181 HK 1.52 82.29 0.05 21.60 20.63 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Net cash
Average 21.86 16.80 2.96 2.75 14.31 15.61 20.20 21.67 10.80 9.12 2.45 2.89 (3.41) 13.87 1.92 35.15 9.03
Source: Bloomberg consensus, Maybank Kim Eng
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Research Offices
REGIONAL
WONG Chew Hann, CA
Regional Head of Institutional Research
(603) 2297 8686 [email protected]
ONG Seng Yeow
Regional Head of Retail Research
(65) 6432 1453
Alexander GARTHOFF
Institutional Product Manager
(852) 2268 0638
ECONOMICS
Suhaimi ILIAS
Chief Economist
Singapore | Malaysia
(603) 2297 8682
Luz LORENZO
Philippines
(63) 2 849 8836
Tim LEELAHAPHAN
Thailand
(662) 658 1420 [email protected]
JUNIMAN
Chief Economist, BII
Indonesia
(62) 21 29228888 ext 29682
Josua PARDEDE
Economist / Industry Analyst, BII
Indonesia
(62) 21 29228888 ext 29695
MALAYSIA
WONG Chew Hann, CA Head of Research (603) 2297 8686 [email protected] • Strategy • Construction & Infrastructure
Desmond CH’NG, ACA (603) 2297 8680 [email protected] • Banking & Finance
LIAW Thong Jung (603) 2297 8688 [email protected] • Oil & Gas - Regional • Shipping
ONG Chee Ting, CA (603) 2297 8678 [email protected] • Plantations - Regional
Mohshin AZIZ (603) 2297 8692 [email protected] • Aviation - Regional • Petrochem
YIN Shao Yang, CPA (603) 2297 8916 [email protected] • Gaming – Regional • Media
TAN Chi Wei, CFA (603) 2297 8690 [email protected] • Power • Telcos
WONG Wei Sum, CFA (603) 2297 8679 [email protected] • Property & REITs
LEE Yen Ling (603) 2297 8691 [email protected] • Building Materials • Glove Producers
CHAI Li Shin (603) 2297 8684 [email protected] • Plantation • Construction & Infrastructure
Ivan YAP (603) 2297 8612 [email protected] • Automotive
LEE Cheng Hooi Regional Chartist (603) 2297 8694 [email protected]
Tee Sze Chiah Head of Retail Research
(603) 2297 6858 [email protected]
HONG KONG / CHINA
Howard WONG Head of Research (852) 2268 0648 [email protected] • Oil & Gas - Regional
Alexander LATZER (852) 2268 0647 [email protected] • Metals & Mining - Regional
Jacqueline KO, CFA (852) 2268 0633 [email protected] • Consumer
Ka Leong LO, CFA (852) 2268 0630 [email protected] * Consumer Discretionary & Auto
Karen KWAN (852) 2268 0640 [email protected] • Property & REITs
Osbert TANG, CFA (86) 21 5096 8370 [email protected] • Transport & Industrials
Ricky WK NG, CFA (852) 2268 0689 [email protected] • Utilities & Renewable Energy
Steven ST CHAN (852) 2268 0645 [email protected] • Banking & Financials
Warren LAU (852) 2268 0644 [email protected] • Technology – Regional
William YANG (852) 2268 0675 [email protected] • Technology – Regional
INDIA
Jigar SHAH Head of Research
(91) 22 6632 2632
• Oil & Gas • Automobile • Cement
Anubhav GUPTA
(91) 22 6623 2605
• Metal & Mining • Capital Goods • Property
Urmil SHAH
(91) 22 6623 2606 [email protected]
• Technology • Media
SINGAPORE
NG Wee Siang Head of Research (65) 6432 1467 [email protected] • Banking & Finance
Gregory YAP (65) 6432 1450 [email protected] • SMID Caps – Regional • Technology & Manufacturing • Telcos
ONG Kian Lin (65) 6432 1470 [email protected] • S-REITs
YEAK Chee Keong, CFA (65) 6432 1460 [email protected] • Offshore & Marine
Derrick HENG (65) 6432 1446 [email protected] • Transport (Land, Shipping & Aviation)
WEI Bin (65) 6432 1455 [email protected] • Commodity • Logistics • S-chips
John CHEONG (65) 6432 1461 [email protected] • Small & Mid Caps • Healthcare
TRUONG Thanh Hang (65) 6432 1451 [email protected] • Small & Mid Caps
INDONESIA
Wilianto IE Head of Research (62) 21 2557 1125 [email protected] • Strategy
Rahmi MARINA (62) 21 2557 1128 [email protected] • Banking & Finance
Aurellia SETIABUDI (62) 21 2953 0785 [email protected] • Property
Anthony YUNUS (62) 21 2557 1136 [email protected] • Consumer • Poultry
Isnaputra ISKANDAR (62) 21 2557 1129 [email protected] • Metals & Mining • Cement
Pandu ANUGRAH (62) 21 2557 1137 [email protected] • Infrastructure • Construction • Transport
Janni ASMAN (62) 21 2953 0784 [email protected] • Cigarette • Healthcare • Retail
PHILIPPINES
Luz LORENZO Head of Research (63) 2 849 8836 [email protected] • Strategy • Utilities • Conglomerates • Telcos
Lovell SARREAL (63) 2 849 8841 [email protected] • Consumer • Media • Cement
Rommel RODRIGO (63) 2 849 8839 [email protected] • Conglomerates • Property • Gaming • Ports/ Logistics
Katherine TAN (63) 2 849 8843 [email protected] • Banks • Construction
Ramon ADVIENTO (63) 2 849 8845 [email protected] • Mining
THAILAND
Maria LAPIZ Head of Institutional Research Dir (66) 2257 0250 | (66) 2658 6300 ext 1399 [email protected] • Consumer / Materials
Jesada TECHAHUSDIN, CFA (66) 2658 6300 ext 1394 [email protected] • Financial Services
Kittisorn PRUITIPAT, CFA, FRM (66) 2658 6300 ext 1395 [email protected] • Real Estate
Sittichai DUANGRATTANACHAYA (66) 2658 6300 ext 1393 [email protected] • Services Sector
Sukit UDOMSIRIKUL Head of Retail Research (66) 2658 6300 ext 5090 [email protected]
Mayuree CHOWVIKRAN (66) 2658 6300 ext 1440 [email protected] • Strategy
Padon VANNARAT (66) 2658 6300 ext 1450 [email protected] • Strategy
Surachai PRAMUALCHAROENKIT (66) 2658 6300 ext 1470 [email protected] • Auto • Conmat • Contractor • Steel
Suttatip PEERASUB (66) 2658 6300 ext 1430 [email protected] • Media • Commerce
Sutthichai KUMWORACHAI (66) 2658 6300 ext 1400 [email protected] • Energy • Petrochem
Termporn TANTIVIVAT (66) 2658 6300 ext 1520 [email protected] • Property
Woraphon WIROONSRI (66) 2658 6300 ext 1560
[email protected] • Banking & Finance
Jaroonpan WATTANAWONG (66) 2658 6300 ext 1404 [email protected] • Transportation • Small cap
Chatchai JINDARAT (66) 2658 6300 ext 1401 [email protected] • Electronics
VIETNAM
LE Hong Lien, ACCA Head of Institutional Research (84) 844 55 58 88 x 8181 [email protected] • Strategy • Consumer • Diversified • Utilities
THAI Quang Trung, CFA, Deputy Manager, Institutional Research (84) 844 55 58 88 x 8180 [email protected] • Real Estate • Construction • Materials
Le Nguyen Nhat Chuyen (84) 844 55 58 88 x 8082 [email protected] • Oil & Gas NGUYEN Thi Ngan Tuyen, Head of Retail Research (84) 8 44 555 888 x 8081 [email protected] • Food & Beverage • Oil&Gas • Banking
TRINH Thi Ngoc Diep (84) 4 44 555 888 x 8208 [email protected] • Technology • Utilities • Construction
TRUONG Quang Binh (84) 4 44 555 888 x 8087 [email protected] • Rubber plantation • Tyres and Tubes • Oil&Gas
PHAM Nhat Bich (84) 8 44 555 888 x 8083 [email protected] • Consumer • Manufacturing • Fishery
NGUYEN Thi Sony Tra Mi (84) 8 44 555 888 x 8084 [email protected] • Port operation • Pharmaceutical • Food & Beverage
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APPENDIX I: TERMS FOR PROVISION OF REPORT, DISCLAIMERS AND DISCLOSURES
DISCLAIMERS
This research report is prepared for general circulation and for information purposes only and under no circumstances should it be considered or intended as an offer to sell or a solicitation of an offer to buy the securities referred to herein. Investors should note that values of such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Opinions or recommendations contained herein are in form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from the relevant jurisdiction’s stock exchange in the equity analysis. Accordingly, investors’ returns may be less than the original sum invested. Past performance is not necessarily a guide to future performance. This report is not intended to provide personal investment advice and does not take into account the specific investment objectives, the financial situation and the particular needs of persons who may receive or read this report. Investors should therefore seek financial, legal and other advice regarding the appropriateness of investing in any securities or the investment strategies discussed or recommended in this report.
The information contained herein has been obtained from sources believed to be reliable but such sources have not been independently verified by Maybank Investment Bank Berhad, its subsidiary and affiliates (collectively, “MKE”) and consequently no representation is made as to the accuracy or completeness of this report by MKE and it should not be relied upon as such. Accordingly, MKE and its officers, directors, associates, connected parties and/or employees (collectively, “Representatives”) shall not be liable for any direct, indirect or consequential losses or damages that may arise from the use or reliance of this report. Any information, opinions or recommendations contained herein are subject to change at any time, without prior notice.
This report may contain forward looking statements which are often but not always identified by the use of words such as “anticipate”, “believe”, “estimate”, “intend”, “plan”, “expect”, “forecast”, “predict” and “project” and statements that an event or result “may”, “will”, “can”, “should”, “could” or “might” occur or be achieved and other similar expressions. Such forward looking statements are based on assumptions made and information currently available to us and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those expressed in any forward looking statements. Readers are cautioned not to place undue relevance on these forward-looking statements. MKE expressly disclaims any obligation to update or revise any such forward looking statements to reflect new information, events or circumstances after the date of this publication or to reflect the occurrence of unanticipated events.
MKE and its officers, directors and employees, including persons involved in the preparation or issuance of this report, may, to the extent permitted by law, from time to time participate or invest in financing transactions with the issuer(s) of the securities mentioned in this report, perform services for or solicit business from such issuers, and/or have a position or holding, or other material interest, or effect transactions, in such securities or options thereon, or other investments related thereto. In addition, it may make markets in the securities mentioned in the material presented in this report. MKE may, to the extent permitted by law, act upon or use the information presented herein, or the research or analysis on which they are based, before the material is published. One or more directors, officers and/or employees of MKE may be a director of the issuers of the securities mentioned in this report.
This report is prepared for the use of MKE’s clients and may not be reproduced, altered in any way, transmitted to, copied or distributed to any other party in whole or in part in any form or manner without the prior express written consent of MKE and MKE and its Representatives accepts no liability whatsoever for the actions of third parties in this respect.
This report is not directed to or intended for distribution to or use by any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. This report is for distribution only under such circumstances as may be permitted by applicable law. The securities described herein may not be eligible for sale in all jurisdictions or to certain categories of investors. Without prejudice to the foregoing, the reader is to note that additional disclaimers, warnings or qualifications may apply based on geographical location of the person or entity receiving this report.
Malaysia
Opinions or recommendations contained herein are in the form of technical ratings and fundamental ratings. Technical ratings may differ from fundamental ratings as technical valuations apply different methodologies and are purely based on price and volume-related information extracted from Bursa Malaysia Securities Berhad in the equity analysis.
Singapore
This report has been produced as of the date hereof and the information herein may be subject to change. Maybank Kim Eng Research Pte. Ltd. (“Maybank KERPL”) in Singapore has no obligation to update such information for any recipient. For distribution in Singapore, recipients of this report are to contact Maybank KERPL in Singapore in respect of any matters arising from, or in connection with, this report. If the recipient of this report is not an accredited investor, expert investor or institutional investor (as defined under Section 4A of the Singapore Securities and Futures Act), Maybank KERPL shall be legally liable for the contents of this report, with such liability being limited to the extent (if any) as permitted by law.
Thailand
The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information. The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey may be changed after that date. Maybank Kim Eng Securities (Thailand) Public Company Limited (“MBKET”) does not confirm nor certify the accuracy of such survey result.
Except as specifically permitted, no part of this presentation may be reproduced or distributed in any manner without the prior written permission of MBKET. MBKET accepts no liability whatsoever for the actions of third parties in this respect.
US
This research report prepared by MKE is distributed in the United States (“US”) to Major US Institutional Investors (as defined in Rule 15a-6 under the Securities Exchange Act of 1934, as amended) only by Maybank Kim Eng Securities USA Inc (“Maybank KESUSA”), a broker-dealer registered in the US (registered under Section 15 of the Securities Exchange Act of 1934, as amended). All responsibility for the distribution of this report by Maybank KESUSA in the US shall be borne by Maybank KESUSA. All resulting transactions by a US person or entity should be effected through a registered broker-dealer in the US. This report is not directed at you if MKE is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you. You should satisfy yourself before reading it that Maybank KESUSA is permitted to provide research material concerning investments to you under relevant legislation and regulations.
UK
This document is being distributed by Maybank Kim Eng Securities (London) Ltd (“Maybank KESL”) which is authorized and regulated, by the Financial Services Authority and is for Informational Purposes only. This document is not intended for distribution to anyone defined as a Retail Client under the Financial Services and Markets Act 2000 within the UK. Any inclusion of a third party link is for the recipients convenience only, and that the firm does not take any responsibility for its comments or accuracy, and that access to such links is at the individuals own risk. Nothing in this report should be considered as constituting legal, accounting or tax advice, and that for accurate guidance recipients should consult with their own independent tax advisers.
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Disclosure of Interest
Malaysia: MKE and its Representatives may from time to time have positions or be materially interested in the securities referred to herein and may further act as market maker or may have assumed an underwriting commitment or deal with such securities and may also perform or seek to perform investment banking services, advisory and other services for or relating to those companies.
Singapore: As of 6 August 2014, Maybank KERPL and the covering analyst do not have any interest in any companies recommended in this research report.
Thailand: MBKET may have a business relationship with or may possibly be an issuer of derivative warrants on the securities /companies mentioned in the research report. Therefore, Investors should exercise their own judgment before making any investment decisions. MBKET, its associates, directors, connected parties and/or employees may from time to time have interests and/or underwriting commitments in the securities mentioned in this report.
Hong Kong: KESHK may have financial interests in relation to an issuer or a new listing applicant referred to as defined by the requirements under Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission.
As of 6 August 2014, KESHK and the authoring analyst do not have any interest in any companies recommended in this research report.
MKE may have, within the last three years, served as manager or co-manager of a public offering of securities for, or currently may make a primary market in issues of, any or all of the entities mentioned in this report or may be providing, or have provided within the previous 12 months, significant advice or investment services in relation to the investment concerned or a related investment and may receive compensation for the services provided from the companies covered in this report.
OTHERS
Analyst Certification of Independence
The views expressed in this research report accurately reflect the analyst’s personal views about any and all of the subject securities or issuers; and no part of the research analyst’s compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in the report.
Reminder
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct its own analysis of the product and consult with its own professional advisers as to the risks involved in making such a purchase.
No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior consent of MKE.
Definition of Ratings
Maybank Kim Eng Research uses the following rating system
BUY Return is expected to be above 10% in the next 12 months (excluding dividends)
HOLD Return is expected to be between - 10% to +10% in the next 12 months (excluding dividends)
SELL Return is expected to be below -10% in the next 12 months (excluding dividends)
Applicability of Ratings
The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies.
DISCLOSURES
Legal Entities Disclosures
Malaysia: This report is issued and distributed in Malaysia by Maybank Investment Bank Berhad (15938-H) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets and Services License issued by the Securities Commission in Malaysia. Singapore: This material is issued and distributed in Singapore by Maybank KERPL (Co. Reg No 197201256N) which is regulated by the Monetary Authority of Singapore. Indonesia: PT Kim Eng Securities (“PTKES”) (Reg. No. KEP-251/PM/1992) is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK. Thailand: MBKET (Reg. No.0107545000314) is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange Commission. Philippines: Maybank ATRKES (Reg. No.01-2004-00019) is a member of the Philippines Stock Exchange and is regulated by the Securities and Exchange Commission. Vietnam: Maybank Kim Eng Securities JSC (License Number: 71/UBCK-GP) is licensed under the State Securities Commission of Vietnam. Hong Kong: KESHK (Central Entity No AAD284) is regulated by the Securities and Futures Commission. India: Kim Eng Securities India Private Limited (“KESI”) is a participant of the National Stock Exchange of India Limited (Reg No: INF/INB 231452435) and the Bombay Stock Exchange (Reg. No. INF/INB 011452431) and is regulated by Securities and Exchange Board of India. KESI is also registered with SEBI as Category 1 Merchant Banker (Reg. No. INM 000011708) US: Maybank KESUSA is a member of/ and is authorized and regulated by the FINRA – Broker ID 27861. UK: Maybank KESL (Reg No 2377538) is authorized and regulated by the Financial Services Authority.
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Malaysia Maybank Investment Bank Berhad
(A Participating Organisation of
Bursa Malaysia Securities Berhad)
33rd Floor, Menara Maybank,
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50050 Kuala Lumpur
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Stockbroking Business:
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