Pan United

Pan United: CIMB upgrades to Outperform from neutral, with higher TP of $1.08 (from $0.90). Notes Pan United intends to boost its revenue across the region by increasing its stake in Changshu Xinghua Port (CXP), which has the potential to add 14-15% to FY14-15 eps after accounting for interest costs. Recall Pan United will acquire MIIF's stake in CXP for $101m, which will allow Pan United to raise its effective stake in CXP from 51.3% to 85.5%. CSP is an integral part of Pan United , being its second -largest source of earnings. CXP contributed 9% to group revenue and 16% to group net profit in FY12. Its operating momentum is expected to continue in the next few yrs.