“In Singapore, this research report or research analyses may only be distributedto Institutional Investors, Expert Investors or Accredited Investors as defined in theSecurities and Futures Act, Chapter 289 of Singapore.”
www.dbsvickers.com Refer to important disclosures at the end of this reportsa: TW
STI : 3,002.62HSI : 21,587.06KLCI : 1,340.07SET : 764.34JCI : 2,944.71KOSPI : 1752.20
*H-shares mkt cap Source: DBS Vickers
Mkt Price Mkt Cap Tgt Price UpsideLCY US$m LCY Rating %
Kia Motors KR 26,400 9,295 33,000 Buy 25%Dongfeng Motor* HK 11.76 4,326 14.9 Buy 27%
Gome ElecAppliancesHK 2.69 5,218 3.66 Buy 36%Beijing Jingkelong* HK 9.16 487 10.34 Buy 13%
Hengan HK 55.80 8,764 72.00 Buy 29%HTL International SG 0.845 256 1.09 Buy 29%
China Foods HK 6.23 2,241 7.90 Buy 27%
WilmarInternationalSG 6.90 32,127 8.33 Buy 21%
Faber Group MK 2.31 262 3.55 Buy 54%
Pico Far EastHK 1.58 244 2.00 Buy 27%
DBS Group Research . Equity 29 April 2010
Regional Industry Focus
Asian Consumer Digest
Cyclical Plays & Currency Winners
In our inaugural Asian Consumer Digest, we scanthrough and feature 7 sub-sectors ranging fromconsumer goods (food, autos, personal/ household) toservices (media, healthcare, retail).
Asian consumers will have stronger purchasing poweras currencies appreciate. We also look for stocks thatwill outperform on company specific or event drivencatalysts.
Top picks – Kia Motors, Dongfeng, Gome, BeijingJingkelong, Hengan, HTL Int’l, China Foods, Wilmar,Faber Grp, Pico.Cyclical Plays.
In our inaugural issue of the Asian ConsumerDigest, we survey the landscape and highlight the sub-sectorswhich will benefit from improved consumer sentiment on theback of robust Asian economic growth.
Strong Asia currencies will benefit somecompanies more than the rest. Winners tend to be thosecompanies that have high domestic revenue content, sourceits materials in foreign currencies (such as USD), and/or withreporting currency in USD. Our top Buys on this theme are
Picks across universe.
Within auto, we expect
to benefit from heightened demand and tooutperform peers.
is in turnaround mode and is lessvulnerable to USD currency strength than commonlyassumed. Our media pick is
Pico Far East
which will benefitfrom the Shanghai World Expo, and increased brand buildingactivities in the longer term. We like
as afood retail play and
as it is projected to benefit fromincreased demand in home appliances in China. In the F&Bspace, we expect beverage players such as
to bein key focus with the summer peak season coming.
is our pick in the Healthcare space, with catalysts fromGLC restructuring in Malaysia.