UBS Key Calls - Asia Changes to Key Calls:: Remove Lanco from Top Buy

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UBS Investment Research
UBS Key Calls - Asia
Changes to Key Calls
 
„ Remove Lanco Infratech
We launched Lanco as a Key Call (Buy) on 14 September 2010 as we believed that
merchant power tariff will be strong given power shortage, and Lanco will benefit
as it executes on its power plant build out plans. Since then, the slowing economic
growth, higher financing cost and ongoing uncertainty over coal availability have
become headwinds to the sector and have reduced our conviction level on the call.
The stock has fallen by 54% and underperformed MSCI Asia ex Japan by 62.4%.
We are removing the Key Call, but the stock remains Buy-rated and our SOTPderived price target is unchanged at Rs70.
„ Ten live Key Calls
We have 10 live Asia Key Calls. 9 Buys—Bank of Ayudhya, Cheung Kong
Infrastructure (CKI), China Unicom-H, Genting Singapore, ICBC-H, KEPCO, LG
Display, OCBC, and Sun Hung Kai P (SHKP). All are rated Buy. 1 Sell—Li &
Fung