亚洲地区-宏观策略-亚洲要闻.docx

Asia Essentials
Tencent (Outperform) 3
Elephant can dance with the “MUSIC” Wendy Huang
Tencent music is the most profitable music pany in the world.
Tencent owns a % stake in Spotify, in return, Spotify takes 9% in TME.
Positive for Tencent sentiment, unlock the value in music business.
Oil Price Risks Still Skewing Negatively 4
Don’t Bet Against the House. Definitely Don’t Bet Against Two
Vikas Dwivedi
18 July 2018
Asia
We believe a structural oil price rally will be tough through YE18. Odds of an additional pullback of
$5 to $10 are growing.
. and Saudi Arabia are likely aligned to lower oil price through YE18. The major implication is a slow implementation of Iranian sanctions.
Other concerns include slowing demand growth, rising US exports, and the return of Russian and OPEC supply to market.
Bumi Armada (Upgrade to Outperform) 5
Catalysts, closer but share price, lower Ben Shane Lim
Share price looks attractive as BAB is now below our bear case valuation of . Upgrade to Outperform from Neutral with +20% upside to our TP.
FPSO earnings visibility to improve with the expected final acceptance of Armada Kraken (3Q18) and extension of Armada TGT1 (Aug 18).
Balance sheet restructuring remains key catalyst; but we prefer more details before we would consider re-rating the stock.
Hindustan Unilever (Outperform) 6
Strong volume growth to continue Amit Sinha
1Q19 results were ahead of our estimates on higher volume growth
Confident higher volume growth will continue on rural turnaround
HUVR remains our top pick and a Macquarie Marquee idea.
Nanya Technology (Outperform) 7
Strong 2Q and 2H outlook Jeffrey Ohlweiler
Nanya Tech remains our top pick for Taiwan in 2018 and is on our regional Marquee list.
We raise our 2018 earnings after a strong 2Q18 beat. No change to our street-high target price of NT$138.
We forecast the cash dividend payout to more than double in 2019 along with operating profits.
Rights, Wrongs & Returns 8
Ch