UBS Asian Equity Research - Morning Ratings & Earnings (14 Nov 13)


Global and Asia Economics & Strategy
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* Macro Keys - The Tricks of Trade: A Structural Change?; Bhanu Baweja;
* China A-Share Strategy  - 18th Third Plenary Session communiqué - on the
  right path filled with challenges; Li Chen;
* Korea Market Strategy - Who can deliver solid earnings growth?; Young
  Chang;

UBS Initiates
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* Himax Technologies (HIMX.O) - Neutral (from Not Rated); PT US$9.2 (from
  Not Rated); +1% upside High growth but rich valuation;

Today's Rating changes
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* Tsingtao Brewery - A (600600.SS) - Neutral (from Buy); PT Rmb45 (from
  Rmb47.3); +5% upside Flagship brand growth has slowed, downgrade rating
  to Neutral ;
* Shandong Weigao Medical Polymer (1066.HK) - Buy (from Neutral); PT
  HK$8.03 (from HK$7.7); +16% upside Back on growth track, Upgrade to Buy;
* CLP Holdings (0002.HK) - Sell (from Neutral); PT HK$58 (from HK$69); -6%
  downside Downgrade to Sell;
* Man Wah Holdings (1999.HK) - Neutral (from Buy); PT HK$13.9 (from
  HK$12.6); +2% upside Robust fundamentals; valuations no longer cheap;
* Indo Tambangraya Megah (ITMG.JK) - Neutral (from Buy); PT Rp32050
  (from Rp45100); +2% upside Strong Q3, but stock upside could be limited;
* Jasa Marga (JSMR.JK) - Sell (from Neutral); PT Rp5200 (from Rp6140); -2%
  downside Not a smooth
* Com2uS (078340.KQ) - Neutral (from Buy); PT Won22000 (from Won48000);
  +9% upside Downgrade to Neutral;

Power Assets / Cheung Kong Infrastructure  
---------------------------------
* Power Assets / Cheung Kong Infrastructure - Prefer Power Assets to Cheung
  Kong Infrastructure; Stephen Oldfield;
* Cheung Kong Infrastructure (1038.HK) - Neutral (from Buy); PT HK$56 (from
  HK$61); +9% upside
* Power Assets (0006.HK) - Buy (from Neutral); PT HK$69 (from HK$73);
  +11% upside

Today's PT changes
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* Country Garden Holdings Company Limited (2007.HK) - Buy (unch); PT
  HK$6.63 (from HK$6); +23% upside Growth built on improving operating
  efficiency;
* Chow Tai Fook Jewellery (1929.HK) - Buy (unch); PT HK$14.8 (from
  HK$12.7); +20% upside Expecting strong H1 FY14E results;
* Multi Commodity Exchange of India (MCEI.BO) - Buy (unch); PT Rs560 (from
  Rs580); +29% upside Trading volumes should improve;
* Aditya Birla Nuvo (ABRL.BO) - Buy (unch); PT Rs1750 (from Rs1630); +49%
  upside Garments post strong quarter;
* State Bank of India (SBI.BO) - Sell (unch); PT Rs1600 (from Rs1500); -6%
  downside Asset quality concerns continue;
* Mahindra & Mahindra (MAHM.BO) - Buy (unch); PT Rs1080 (from Rs1050);
  +21% upside Q2FY14: Beating on margin expectations;
* Tata Steel Ltd. (TISC.BO) - Buy (unch); PT Rs425 (from Rs340); +18%
  upside Beat across the board; Europe delivers again!;
* WeMade Entertainment (112040.KQ) - Buy (unch); PT Won58000 (from
  Won70000); +53% upside Q313 miss; but well flagged;
* YTL Power International (YTLP.KL) - Sell (unch); PT RM1.45 (from RM1.4); -
  23% downside Share buyback provides share price support;
* ComfortDelGro (CMDG.SI) - Neutral (unch); PT S$1.9 (from S$1.86); +0%
  upside UK bus acquisition bears fruit;
* Career Technology (6153.TW) - Neutral (unch); PT NT$24.5 (from NT$28.5);
  +1% upside Margin still trending down YoY;
* Foxconn Technology (2354.TW) - Neutral (unch); PT NT$70 (from NT$84);
  +3% upside No clear catalyst except strong seasonality;
* WIN Semiconductors (3105.TWO) - Neutral (unch); PT NT$23.2 (from
  NT$32.5); -5% downside Outlook remains tough;
* Wistron Corporation (3231.TW) - Neutral (unch); PT NT$25 (from NT$26);
  +1% upside Still in transition;
* Hon Hai Precision (2317.TW) - Sell (unch); PT NT$62 (from NT$58); -17%
  downside Earnings improvement not sustainable;

Company Update
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* PetroChina (0857.HK) - Buy (unch); PT HK$11.9 (unch); +40% upside
  Reasonable acquisition in Peru, but small for PTR;
* Sino Biopharmaceutical (1177.HK) - Buy (unch); PT HK$6.27 (unch); +20%
  upside Benign 3Q results; Retain Buy and PT $6.27;
* China National Offshore Oil Corporation (0883.HK) - Neutral (unch); PT
  HK$17 (unch); +14% upside Horn River opportunity but in the long term;
* RDA Microelectronics (RDA.O) - Neutral (unch); PT US$18 (unch); 0%
  downside Not a done deal yet;
* The Link Real Estate Investment Trust (0823.HK) - Neutral (unch); PT
  HK$40.8 (unch); +6% upside DPU beat forecast by 1% due to better margins;
* Bajaj Electricals (BJEL.BO) - Buy (unch); PT Rs270 (unch); +68% upside
  Same story - strong consumers, E&P losses; retain hope;
* Cipla Ltd. (CIPL.BO ) - Buy (unch); PT Rs470 (unch); +14% upside Q2FY14:
  Muted quarter;
* Coal India (COAL.BO) - Buy (unch); PT Rs410 (unch); +44% upside 2Q FY14
  Results: below estimates;
* GMR Infrastructure (GMRI.BO) - Buy (unch); PT Rs24 (unch); +15% upside
  Q2FY14: Operating performance better than estimates;
* Oil & Natural Gas Corporation (ONGC.BO) - Buy (unch); PT Rs360 (unch);
  +34% upside 2Q inline, Production growth the catalyst;
* Tata Global Beverages (TAGL.BO) - Buy (unch); PT Rs200 (unch); +39%
  upside Q2 FY14; ad spends, one-off hurts profit;
* Hitachi (6501.T) - Buy (unch); PT ￥850 (unch); +24% upside Company has
  shown the power to change;
* Cebu Air (CEB.PS) - Buy (unch); PT P86 (unch); +64% upside Bigger planes
  and competition hurt Q313 earnings;
* Kasikornbank (TFBF.BK) - Buy (unch); PT Bt228 (unch); +26% upside
  Talking with the Head of SME;
* Central Pattana (CPN.BK) - Neutral (unch); PT Bt51 (unch); +13% upside No
  visible slowdown;
* Electricity Generating Co. (EGCO.BK) - Neutral (unch); PT Bt138 (unch);
  +10% upside 9M13 adjusted income up 22% YoY;
* Hiwin Technologies (2049.TW) - Buy (unch); PT NT$256 (unch); +19%
  upside On the road to recovery;
* Zhen Ding Technology (4958.TW) - Buy (unch); PT NT$82 (unch); +21%
  upside Steady progress;
* Asustek Computer Inc. (2357.TW) - Neutral (unch); PT NT$230 (unch); +3%
  upside Inflection point could be still away;
* Compal Electronics Inc. (2324.TW ) - Neutral (unch); PT NT$22 (unch); +5%
  upside Improving outlook already in the price ;
* Everlight Electronics (2393.TW) - Sell (unch); PT NT$44 (unch); -15%
  downside Q313 operating result in-line; GM miss a concern;
* Nan Ya Plastics (1303.TW ) - Sell (unch); PT NT$50 (unch); -21% downside
  MEG and FPCC supported Q313 recovery;
* Simplo Technology (6121.TWO) - Sell (unch); PT NT$120 (unch); -7%
  downside In search of the next earnings driver;

Sector note
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* China Cement Sector - More than seasonal strengthening ; Mick Mi;
* China Non-Ferrous Metals Sector - October refined copper output set a new
  high, domestic demand did not beat; Haoxiang Lin;
* China Property - Implication of the 3rd Plenum to Property; Eva Lee;
* HK China Property Morning Post  - CR Land achieved 99% of its 2013 sales
  target YT Oct; Eva Lee;
* Shinsegae and Emart monthly results - Weak Oct results; cost controls
  continue ; Jennifer Han;
* Singapore Property - Office space: sweet signs of recovery; Michael Lim;

Credit Research
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* Asian Banks - Revisiting regulatory par call risk; Aleen Lee;