Malaysia Automotive
NAP2014 - Lacking details

EEV tax incentives for CKD models, new manufacturing licences, various grants/loans. Honda has already the first mover advantage. Pledged gradual 20-30% car price reduction by 2017 but with no review of the current high excise duties. GST to replace sales tax in 2015 may aid in lowering prices. Disappointments – No review of AP (open and franchise) which leads to more leakages for manufacturers. Top pick: DRB-HICOM (RM3.50 TP) with wide range of marques and credible Proton turnaround plan.

Axis REIT; Buy; RM2.85
Price target: RM3.60 (Prev RM3.70); AXRB:MK
Better days in 2014

FY13 results in line with consensus estimates but below ours; DPU implies 6% distribution yield. Robust asset pipeline and  organic enhancements to support growth. Cut FY14-16F earnings by 1-4%; maintain BUY rating with RM3.60 TP.

Source: HwangDBS Research - 21 Jan 2014