Morning Express 23 November 2017
Focus of the Day Indices
China Resources Land (1109 HK) Unchanged fundamentals, undemanding valuation Philip TSE, CFA Last Closing: HK$ 22.20
NEUTRAL SELL
[email protected] Upside: +19.32%
Target Price: HK$ 26.49→
Share price has corrected by 20% from recent peak on 19 Sep. Fundamentals remain intact with sales progress on track and strong growth in rental income.
Management expects rental income to reach HK$11bn by 2019. We upgrade from Neutral to Buy on undemanding valuation with TP unchanged at HK$26.49, based on a 30% discount to our NAV estimate.
CIFI Holdings (884 HK)
Philip TSE, CFA
NEUTRAL
Last Closing: HK$ 4.19
[email protected] Upside: +20.29%
Target Price: HK$ 5.04→
Ytd % 36.38 27.29 10.57 0.71 0.65 5.68 19.04 16.00 27.57 3.87 10.09 13.36
Close 63.32 1,291.35 17.10 6,954.00 111.22 1.33 1.18
3m % 22.07 0.03 0.04 5.68 -1.96 4.05 0.11
Ytd % 11.44 12.07 7.45 25.63 5.16 7.93 12.39
bps change HIBOR s US 10 yield 2.32 Source: Bloomberg
3m 0.20 0.15
6m 0.18 0.04
Brent Gold Silver Copper JPY GBP EURO
HSI Technical
SELL
CIFI achieved 98.6% of its FY17 sales target in 10M17. We expect it to reach the RMB100bn contracted sales milestone in 2017 by keeping the existing sell-through rate. The company acquired >10m sq m landbank in 10M17, providing ample saleable resources to fuel FY18 growth. Share price has corrected by 20% from peak in Sep. We upgrade from Neutral to Buy on undemanding valuation with growth prospects intact. Reiterate TP of HK$5.04, based on 30% discount to our NAV estimate.
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1d % 0.62 0.71 0.59 0.34 -0.26 -0.16 -0.27 -0.08 0.07 0.10 -0.25 -1.16
Indicators
We expect GPM to remain at 34% for FY17-19E.
Tier-2 developer on fast growth track with undemanding valuation
Close HSI s H Shares 11,959 SH A 3,593 SH B 344 SZ A 2,073 SZ B 1,192 DJIA 23,526 S&P 500 2,597 Nasdaq 6,867 FTSE 7,419 CAC 5,353 DAX 13,015 Source: Bloomberg
HSI 50 d MA 200 d MA 14 d RSI Short Sell (HK$ m) Source: Bloomberg
30,003 28,445 26,201 74 14,435
23 November 2017
Morning Express
Hang Seng Index (1 year)
Insurance Sector
30,000
Sept revenue from personal insurance soared; watch the progress of new-year products Li WAN, CFA
[email protected]
UP
MP
OP
9M17 premium income of primary insurance increased by 21% YoY to RMB3.05 tr, a flattish growth compared with 8M17. Growth of premium income of property insurance picked up slightly for five consecutive months while the growth of personal insurance premium income rebounded for the first time subsequent to continued moderation in the year. Since Mar, the market share of large-sized personal insurers had increased steadily. In Oct, premium income growth of large-scale life insurers slowed after the hike in Sept.
28,000 26,000 24,000 22,000 20,000
Source: Bloomberg
HS China Enterprise Index (1 year) 12,000 11,000 10,000 9,000
Growth of premium income from health insurance rallied and the scale in Sept alone hit a record high since Apr 2017.
8,000
Source: Bloomberg
In Sept, personal insurers boosted product sales by seizing the opportunity prior to the implementation of new regulations, resulting in higher premium income growth compared with 8M17. However, on basis of the data announced by large-scale insurers, premium income witnessed slight decline in Oct upon high growth in Sept. We maintain Market Perform on the sector and closely follow the progress of new-year products. Maintain Neutral on China Life and Buy on NCI.
Shanghai A-shares (1 year) 3,800 3,600 3,400 3,200 3,000
Renewable Energy Sector
Source: Bloomberg
China continued to impose anti-dumping duties on Korea's polysilicon; growth of wind power generation slowed in Oct
Shenzhen A-shares (1 year)
Louis SUN
[email protected]
2,300
UP
MP
OP 2,100
China continued to impose anti-dumping duties on Korea's polysilicon. We estimate that a higher import tax rate may increase the overseas procurement costs of Chinese enterprises but it will also establish trade barrier to protect domestic polysilicon enterprises. Wind power growth slowed due to the worsening of wind conditions in Oct but wind capacity utilization hours jumped in Oct. PV product prices continued to decline slightly this week, among which monocrystalline PERC battery witnessed the greatest decline.
1,900
1,700
Source: Bloomberg
Recently, major wind power generation enterprises released their operating data in Q3 successively. In particular, Longyuan Power performed well while revenue growth of Datang Renewables and Huaneng Renewables was significantly lower than the growth of power generation. However, we believe that this was mainly attributable to normal adjustment arising from changes in business data composition. Hence, we remain upbeat about the investment opportunities of the wind power sector and continue to recommend Buy on Longyuan Power and Huaneng Renewables, with TP of HK$6.85 and HK$3.09, respectively.
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2
Morning Express
23 November 2017
Market Review Hong Kong stocks extended advance. The Hang Seng Index rose 185 points, or 0.6%, to close at 30,003. HKEx (388 HK) rose 3.8% as the best blue-chip performer. Chinese lenders advanced. MSB (1988 HK) gained 4.2%. CCB (939 HK) and ICBC (1398 HK) both climbed 1.6%. Paper manufacturers rallied. Nine Dragons Paper (2689 HK) jumped 5.7%. Lee & Man Paper (2314 HK) rose 3.9%. Blue-chip mainland developers COLI (688 HK) and CR Land (1109 HK) climbed 2.5% and 2.3%, respectively. Insurers mostly finished lower. Ping An (2318 HK) dropped 2.4% as the worst blue-chip performer. PICC P&C (2328 HK) declined 1.6%. China Life (2628 HK) dropped 0.6%. CPIC (2601 HK) shed 0.5%. NCI (1336 HK) added 0.3%. US stock indexes mostly closed with modest decline. The S&P 500 dropped 1.95 points to 2,597.08. The DJIA dropped 64.65 points, or 0.3%, to 23,526.18. The Nasdaq Composite Index added 4.88 points to 6,867.36. European stocks fell. Stoxx Europe 600 dropped 0.3% to 487.06.
News Reaction Rumor has it that the Chinese government ceased to issue licenses for online micro-loan platforms. As disclosed by insiders, a senior government body in China issued an urgent notification to provincial governments, requesting the provincial governments not to give approval to online micro loan companies. It also requested all regulatory authority not to grant any new approval to micro loan companies to commence micro loan businesses across provinces (regions and cities). To explore ways to expand the scope of involvement and utilization of insurance capital in aspects such as bulk commodities and apartments for long-term rental, an official from the China Insurance Regulatory Commission (CIRC) said. Ren Chunsheng, director of the Fund Application Department of the CIRC the authority shall explore ways to expand involvement and utilization of insurance capital in aspects such as bulk commodities and apartments for long-term rental and further optimize the allocation of insurance capital. He added that insurance capital was utilized for investments with prudence, caution and value, while aggressive investment behaviors were curbed. Tencent (700.HK) obtained exclusive agency rights of "Playerunknown's Battlegrounds" in China. According to an announcement of Tencent’s official weibo, the company entered into strategic cooperation with PUBG and obtained exclusive agency rights of "Playerunknown's Battlegrounds" in China.
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3
23 November 2017
Morning Express
Economic releases for this week - USA Date Time
Event
21-Nov Existing Home sales (m) 22-Nov MBA mortgage applications (%) 22-Nov Initial jobless claims (k) 22-Nov Durable goods order (%) Source: Bloomberg
Economic releases for this week - China Survey
Prior
5.41 -240 0.3
5.39 3.1 249 2
Date Time
Event
-
-
Survey
Prior
-
-
Source: Bloomberg
BOCOM Research Latest Reports Data
Report
Analyst
22 Nov 22 Nov
Vipshop (VIPS US) - Need partners to accelerate market share gain; further TP cut GCL-Poly (3800 HK) - Lift FY17 earnings estimates, but watch out for downside risks of FY18 result performance Banking Sector - New asset management rules: bank WM most impacted with faster transition Kingsoft (3888 HK) - 3Q17 revenue in line; game revenue to decline further in 4Q17
Summer Wang, CFA Louis Sun
22 Nov 22 Nov 22 Nov 21 Nov 21 Nov 20 Nov
Healthcare Sector - Industry movement as of 21 Nov 2017 Transportation and Infrastructure Sector - Weekly news wrap as of 17 November 2017 Alibaba (BABA US) - The new retail concept may materialize and expand rapidly upon its share acquisition of Sun Art Retail Internet Sector - 13 to 17 Nov
20 Nov 20 Nov 17 Nov
Cement sector - The cement price rose 2.3% WoW, with soaring prices seen in various places Cathay Pacific Airways (293 HK) - Management turns more positive; recent pullback a good entry point Baidu (BIDU US) - AI products and commercialization in full swing; search + feed ad to bolster ROI
16 Nov
Netease (NTES US) - Gaming valuation lower on short term issue while lifting e-com valuation
16 Nov 16 Nov 16 Nov
Canvest (1381 HK) - One step closer to year-end contract capacity target, TP upgrade Renewable Energy Sector - A significantly positive boost to the distributed power generation market; China to issue quarterly reports regarding water and wind curtailment conditions nationwide Tencent (700 HK) - 3Q17 results beat on games and payment; further TP upgrade
15 Nov 15 Nov
SMIC (981 HK) - Outlook soft; target to strengthen long-term competitiveness challenging Hong Kong REITs - Pick the right squad - CBD offices + mid-market malls
15 Nov 15 Nov 15 Nov
JD.com (JD US) - Margin evolution story unfolds; Raise TP again Healthcare Sector - Industry movement as of 14 Nov 2017 Banking Sector - The growth of new loans missed, mainly due to tightened supervision and seasonality
Li Wan CFA, FRM, Hannah Han Internet Innovation Center: Gu Xinyu (Connie), CPA, Sun Mengqi (Brandy), Zhou Zhe (Gigi), Shan Ying Grace Zha, Li Zhao Geoffrey Cheng, CFA, Fay Zhou, Luya You Internet Innovation Center: Gu Xinyu (Connie), CPA, Sun Mengqi (Brandy), Zhou Zhe (Gigi), Shan Ying Internet Innovation Center: Gu Xinyu (Connie), CPA, Sun Mengqi (Brandy), Zhou Zhe (Gigi), Shan Ying Angus Chan, Steve Liu Geoffrey Cheng, CFA Internet Innovation Center: Gu Xinyu (Connie), CPA, Sun Mengqi (Brandy), Zhou Zhe (Gigi), Shan Ying Internet Innovation Center: Gu Xinyu (Connie), CPA, Sun Mengqi (Brandy), Zhou Zhe (Gigi), Shan Ying Wallace Cheng Louis Sun Internet Innovation Center: Gu Xinyu (Connie), CPA, Sun Mengqi (Brandy), Zhou Zhe (Gigi), Shan Ying Chris Yim Philip Tse, CFA, FRM, Alfred Lau, CFA, FRM, Carmen Wong Summer Wang, CFA Grace Zha, Li Zhao Li Wan CFA, FRM, Hannah Han
Source: Company data, BOCOM Int’l
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4
23 November 2017
Morning Express
Hang Seng Index Constituents Company name CKH HOLDINGS HANG LUNG PPT CKI HOLDINGS HENGAN INTL CHINA SHENHUA-H HANG SENG BANK CHINA RES LAND CK ASSET HOLDING HENDERSON LAND D AIA KUNLUN ENERGY ICBC-H CHINA MERCHANTS WANT WANT CHINA SHK PPT NEW WORLD DEV GEELY AUTOMOBILE SWIRE PACIFIC-A SANDS CHINA LTD CLP HOLDINGS AAC TECHNOLOGIES BANK EAST ASIA PING AN MENGNIU DAIRY BOC HONG KONG HO CHINA LIFE-H CITIC GALAXY ENTERTAIN WH GROUP LTD CATHAY PAC AIR HONG KG CHINA GS BANKCOMM-H SINOPEC CORP-H HKEX BANK OF CHINA-H WHARF HLDG HSBC HOLDINGS PL POWER ASSETS MTR CORP CHINA OVERSEAS TENCENT CHINA UNICOM LINK REIT SINO LAND CHINA RES POWER PETROCHINA-H CNOOC CCB-H CHINA MOBILE LENOVO GROUP HANG SENG INDEX
Stock code
Current price (HK$)
Mkt cap (HK$ m)
5d chg (%)
Ytd chg (%)
–––– 52-week –––– Hi Lo (HK$) (HK$)
–––––––––– PE ––––––––––– 2016A 2017E 2018E (X) (X) (X)
1 HK 101 HK 1038 HK 1044 HK 1088 HK 11 HK 1109 HK 1113 HK 12 HK 1299 HK 135 HK 1398 HK 144 HK 151 HK 16 HK 17 HK 175 HK 19 HK 1928 HK 2 HK 2018 HK 23 HK 2318 HK 2319 HK 2388 HK 2628 HK 267 HK 27 HK 288 HK 293 HK 3 HK 3328 HK 386 HK 388 HK 3988 HK 4 HK 5 HK 6 HK 66 HK 688 HK 700 HK 762 HK 823 HK 83 HK 836 HK 857 HK 883 HK 939 HK 941 HK 992 HK
98.65 17.76 67.30 76.50 19.58 185.40 22.20 65.25 51.80 68.15 6.57 6.33 20.85 6.21 127.40 11.70 29.15 74.10 37.30 79.45 177.00 33.35 84.10 21.10 37.60 27.20 11.34 58.55 7.70 12.40 14.80 5.89 5.58 254.20 3.87 25.90 76.95 66.45 45.25 24.75 426.80 11.90 68.15 13.76 15.22 5.29 10.76 7.01 78.95 4.44
380,560 79,877 178,390 92,174 541,823 354,456 153,867 241,262 207,259 822,860 53,036 2,533,389 68,338 77,673 369,044 115,088 261,423 105,197 301,143 200,726 216,294 92,227 1,617,326 82,865 397,537 1,029,563 329,884 252,095 112,873 48,780 207,017 501,544 844,413 315,160 1,326,881 78,638 1,538,571 141,822 271,770 271,166 4,054,141 284,970 149,922 86,902 73,215 1,718,168 480,407 1,768,840 1,616,539 53,346
0.66 1.37 -1.61 -1.29 -0.81 -0.91 -0.45 -0.91 -1.24 5.50 -2.67 4.80 -8.35 -3.27 0.00 1.56 6.97 -0.94 1.63 -0.63 4.12 0.45 14.03 2.68 0.67 3.62 0.71 5.50 -2.16 3.51 -0.13 2.08 1.27 10.33 2.38 -5.82 2.46 -0.82 0.22 2.70 11.44 1.36 -0.80 -1.71 -0.91 0.76 1.70 4.94 0.51 -0.45
12.23 8.03 9.08 34.33 57.68 28.48 27.29 37.22 38.13 55.77 13.28 36.13 14.12 24.95 30.00 42.68 293.39 0.07 10.68 11.51 151.24 12.29 116.75 42.14 35.83 34.65 2.16 75.39 22.81 21.57 18.49 4.99 1.45 38.76 12.50 33.78 23.61 15.14 25.69 20.44 124.99 31.78 35.22 18.42 23.54 -7.21 10.93 17.42 -0.27 -5.53
108.90 21.80 73.80 80.60 21.10 195.30 27.45 70.50 56.00 69.15 8.04 6.48 26.02 6.98 136.90 12.78 29.80 81.75 41.85 85.50 185.00 36.00 87.10 23.10 40.40 28.20 12.70 58.90 8.65 13.48 15.27 6.44 6.57 255.00 4.18 30.10 79.65 71.17 47.75 29.45 439.60 13.24 69.65 14.56 16.36 6.29 11.28 7.12 87.93 5.40
87.00 15.86 60.15 52.80 11.99 142.10 17.04 46.50 36.59 42.65 5.62 4.45 17.85 4.75 96.50 8.08 7.02 72.20 31.25 70.80 65.35 29.25 38.00 13.85 27.03 19.84 10.66 32.15 5.66 10.02 12.27 5.40 5.37 177.60 3.32 18.68 60.60 57.08 35.52 20.15 179.60 8.67 48.55 11.26 11.86 4.68 8.45 5.42 77.05 4.10
11.19 11.28 17.31 22.03 7.35 20.02 9.09 9.84 7.54 20.81 93.90 6.76 9.43 20.29 8.83 14.55 29.02 6.67 28.54 16.06 38.37 29.48 17.41 N/A 14.82 31.16 8.22 29.94 12.94 N/A 27.65 5.35 10.35 45.93 5.53 3.39 34.06 20.33 21.14 6.82 55.49 78.05 6.32 11.54 17.16 34.04 16.64 6.22 12.35 21.90
10.79 14.45 16.02 20.60 7.56 18.80 8.14 12.06 14.07 20.34 10.42 6.77 12.32 21.03 14.38 15.35 24.15 20.53 24.74 15.66 34.16 13.47 17.51 28.58 12.90 21.91 6.52 27.11 13.32 N/A 26.52 5.50 10.94 43.21 5.58 11.99 14.79 18.61 27.21 7.58 52.81 55.66 30.41 16.42 14.39 30.47 13.18 6.18 12.01 8.24
30,003
18,991,710
3.99
36.38
30,200
21,489
13.93
13.66
Yield 2017E (%)
P/B 2017E (X)
9.80 16.51 14.86 19.26 8.40 17.25 6.97 10.46 16.00 19.56 9.52 6.35 12.67 19.99 12.61 15.48 18.03 16.83 21.51 15.10 25.35 17.11 14.79 20.97 12.11 19.03 6.76 24.50 11.88 87.94 25.30 5.30 10.59 37.97 5.23 12.97 13.97 18.10 28.02 6.66 40.55 28.22 27.71 13.64 8.79 20.64 11.35 5.76 11.27 13.22
2.91 4.23 3.56 3.15 5.16 3.59 3.56 2.59 3.20 1.51 2.44 4.42 8.34 2.19 3.15 3.74 0.82 2.91 5.44 3.63 1.10 3.48 1.42 0.85 3.75 1.64 3.11 1.06 3.35 0.10 2.36 5.37 5.48 2.09 5.34 3.05 5.18 7.99 6.80 3.51 0.20 0.82 3.29 3.71 5.57 2.52 4.25 4.84 8.34 4.05
0.86 0.62 1.62 4.85 1.07 2.47 1.17 0.87 0.76 2.70 1.17 0.91 0.94 4.83 0.76 0.61 6.78 0.50 8.62 1.91 10.27 1.05 2.86 3.11 1.63 2.00 0.64 4.87 2.06 0.92 3.43 0.60 0.78 9.18 0.67 0.60 1.17 1.39 1.90 1.08 14.55 1.03 1.17 0.67 1.04 0.68 1.03 0.86 1.37 1.92
12.53
3.29
1.42
Source: Bloomberg
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5
23 November 2017
Morning Express
China Ent Index Constituents Stock
Current
Mkt
5d
Ytd
code
price (HK$)
cap (HK$ m)
chg (%)
chg (%)
Hi (HK$)
Lo (HK$)
CHINA SHENHUA-H
1088 HK
19.58
541,823
-0.81
57.68
21.10
11.99
7.35
SINOPHARM-H CHINA RAIL CN-H
1099 HK 1186 HK
31.00 9.12
85,780 183,069
-3.13 -0.98
-2.97 -8.62
38.25 11.98
30.80 8.91
14.83 7.13
BYD CO LTD-H
1211 HK
75.75
225,200
11.23
85.43
83.70
40.05
44.54
ABC-H NEW CHINA LIFE-H
1288 HK 1336 HK
3.69 56.15
1,433,271 228,620
2.50 9.03
16.04 57.72
3.80 57.85
3.10 34.35
5.44 30.56
PICC GROUP-H
1339 HK
4.11
174,363
3.53
34.31
4.30
2.98
CHINA CINDA-H ICBC-H
1359 HK 1398 HK
2.94 6.33
112,204 2,533,389
1.03 4.80
4.63 36.13
3.52 6.48
2.58 4.45
POSTAL SAVINGS-H
1658 HK
4.47
362,207
1.59
6.68
5.18
4.11
6.88
CRRC CORP LTD -H GF SECURITIES-H
1766 HK 1776 HK
7.43 16.20
372,413 156,355
2.62 -0.12
6.75 0.12
7.99 18.56
6.81 15.34
17.08 12.64
CHINA COM CONS-H
1800 HK
8.88
240,093
-0.22
-0.45
11.74
8.45
6.82
CGN POWER-H MINSHENG BANK-H
1816 HK 1988 HK
2.16 7.88
98,169 371,229
-0.92 6.49
1.41 -4.95
2.53 9.48
2.03 7.16
8.50 4.98
CHINA VANKE-H
2202 HK
29.85
412,542
6.80
68.64
31.00
17.40
12.15
PING AN PICC P&C-H
2318 HK 2328 HK
84.10 15.62
1,617,326 231,621
14.03 1.69
116.75 29.30
87.10 17.00
38.00 11.50
17.41 10.08
GREAT WALL MOT-H
2333 HK
9.17
109,873
4.92
26.66
12.08
6.84
8.76
CHINA PACIFIC-H CHINA LIFE-H
2601 HK 2628 HK
41.20 27.20
459,782 1,029,563
9.43 3.62
52.31 34.65
42.30 28.20
26.35 19.84
25.41 31.16
BANKCOMM-H
3328 HK
5.89
501,544
2.08
4.99
6.44
5.40
SINOPEC CORP-H ZHUZHOU CRRC T-H
386 HK 3898 HK
5.58 44.45
844,413 52,250
1.27 -2.41
1.45 12.96
6.57 48.35
5.37 36.50
Company name
–––– 52-week ––––
–––––––––– PE –––––––––––
Yield
P/B
2018E (X)
2017E (%)
2017E (X)
7.56
8.40
5.16
1.07
14.47 6.73
12.78 6.06
2.08 2.40
1.95 0.73
39.52
26.37
0.44
3.24
5.37 23.95
5.02 18.24
5.60 1.12
0.74 2.28
9.57
8.68
8.30
0.89
1.02
5.70 6.76
5.31 6.77
4.62 6.35
5.38 4.42
0.68 0.91
6.83
6.06
2.62
0.79
15.34 11.83
13.22 10.27
2.53 2.82
1.53 1.23
6.54
5.85
2.99
0.71
9.43 5.05
9.10 4.88
3.39 3.93
1.31 0.65
10.40
8.64
3.99
2.12
17.51 8.96
14.79 8.30
1.42 2.68
2.86 1.42
12.64
8.67
2.54
1.40
21.64 21.91
17.44 19.03
2.31 1.64
2.25 2.00
5.35
5.50
5.30
5.37
0.60
10.35 17.57
10.94 15.34
10.59 13.16
5.48 1.28
0.78 2.45
2016A (X)
2017E (X)
CHINA RAIL GR-H
390 HK
5.94
221,350
1.37
-6.90
7.71
5.70
8.34
7.92
7.10
2.07
0.79
CM BANK-H BANK OF CHINA-H
3968 HK 3988 HK
33.30 3.87
905,792 1,326,881
10.26 2.38
83.17 12.50
34.25 4.18
17.52 3.32
10.33 5.53
10.29 5.58
9.14 5.23
2.86 5.34
1.57 0.67
DONGFENG MOTOR-H
489 HK
10.02
86,334
-0.40
32.36
11.46
7.45
5.36
5.38
5.17
2.90
0.66
CITIC SEC-H HAITONG SECURI-H
6030 HK 6837 HK
17.80 11.80
269,255 178,921
5.33 0.00
12.94 -11.28
18.74 15.24
15.36 11.38
17.80 14.72
16.54 13.30
14.37 11.46
2.00 2.40
1.22 0.98
CGS-H
6881 HK
6.35
118,005
-3.64
-9.16
8.14
6.15
10.46
10.36
9.21
2.86
0.83
HUATAI SECURIT-H CHINA TELECOM-H
6886 HK 728 HK
16.74 3.82
159,304 309,162
3.33 1.06
13.11 6.70
18.98 4.20
14.04 3.53
16.45 14.17
14.92 12.99
12.78 11.63
2.88 3.15
1.16 0.80
AIR CHINA LTD-H
753 HK
8.83
175,020
14.23
78.38
9.29
4.89
14.24
12.14
11.68
1.67
1.25
PETROCHINA-H HUANENG POWER-H
857 HK 902 HK
5.29 5.25
1,718,168 104,795
0.76 -3.49
-7.21 2.14
6.29 6.25
4.68 4.60
34.04 25.52
30.47 28.86
20.64 9.24
2.52 1.93
0.68 0.84
CONCH CEMENT-H
914 HK
36.15
185,308
10.21
71.33
36.60
20.55
13.58
12.07
11.64
2.93
1.87
CHINA LONGYUAN-H CCB-H
916 HK 939 HK
5.39 7.01
43,316 1,768,840
-4.43 4.94
-11.06 17.42
7.05 7.12
5.30 5.42
10.34 6.22
9.39 6.18
7.90 5.76
2.19 4.84
0.85 0.86
CITIC BANK-H
998 HK
5.17
338,382
4.23
4.87
5.50
4.69
5.14
5.10
4.90
4.89
0.56
11,959
5,383,012
4.78
27.29
12,101
9,117
9.50
9.13
8.31
3.36
1.05
HANG SENG CHINA ENT INDX Source: Bloomberg
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6
23 November 2017
Morning Express
BOCOM International 10/F., Man Yee Building, 68 Des Voeux Road Central, Hong Kong Main: + 852 3766 1899 Fax: + 852 2107 4662 www.bocomgroup.com Rating System Analyst Stock Ratings:
Analyst Industry Views:
Buy: The stock's total return is expected to exceed that of the corresponding industry over the next 12 months. Neutral: The stock's total return is expected to be in line with that of the corresponding industry over the next 12 months. Sell: The stock's total return is expected to be below that of the corresponding industry over the next 12 months. Not-Rated: The analyst does not have conviction regarding the outlook of the stock's total return relative to that of the corresponding industry over the next 12 months. Trading Buy: The stock's absolute return is expected to be very attractive in the near term. This rating can be different from the rating with a view over the next 12 months.
Outperform: The analyst expects the industry coverage universe to be attractive relative to the relevant broad market benchmark over the next 12 months. Market perform: The analyst expects the industry coverage universe to be in line with the relevant broad market benchmark over the next 12 months. Underperform: The analyst expects the industry coverage universe to be unattractive relative to the relevant broad market benchmark over the next 12 months. Broad market benchmark for Hong Kong is the Hang Seng Composite Index, for China A-shares is the MSCI China A Index, for US-listed Chinese companies is S&P US Listed China 50 (USD) Index.
Trading Sell: The stock's absolute return is expected to be very unattractive in the near term. This rating can be different from the rating with a view over the next 12 months.
Research Team Head of Research
@bocomgroup.com
Hao HONG, CFA
(852) 3766 1802
hao.hong
(852) 3766 1802 (852) 3766 1825 (852) 3766 1837
hao.hong karen.tan Grace.hua
(86) 10 8800 9788 - 8051 (852) 3766 1858 (852) 3766 1850
wanli hannah.han yufan.zhang
(852) 3766 1808
summer.wang
(852) 3766 1810
wallace.cheng
(852) 3766 1807
alfred.lau
(86) 21 6065 3611
grace.zhao
Macro-Strategy
Banks/ Non-Bank Financials
Summer WANG, CFA
Yuan MA, PhD Connie GU, CPA Mengqi SUN Zhe ZHOU Shan Ying
(86) 10 8800 9788 - 8039 (86) 10 8800 9788 - 8045 (86) 10 8800 9788 - 8048 (86) 10 8800 9788 - 8041 (86) 10 8800 9788 - 8044
yuan.ma connie.gu mengqi.sun zhe.zhou ying.shan
(852) 3766 1807 (852) 3766 1815 (852) 3766 1830
alfred.lau philip.tse carmen.wong
(86) 21 6065 3606
louis.sun
(852) 3766 1803
christopher.yim
(852) 3766 1809 (852) 3766 1816
geoffrey.cheng fay.zhou
(86) 21 6065 3601
angus.chan
Alfred LAU, CFA, FRM Philip TSE, CFA, FRM Carmen WONG
Louis SUN
Technology
Gaming & Leisure
Chris YIM
Transportation & Industrials
Healthcare Grace ZHAO
geoffrey.cheng
Renewable Energy
Environmental Services
Alfred LAU, CFA, FRM
@bocomgroup.com (852) 3766 1809
Property
Consumer
Wallace CHENG
Geoffrey CHENG, CFA
Internet
Hao HONG, CFA Karen TAN Grace HUA, CFA
Li WAN, CFA, FRM Hannah HAN Jennifer ZHANG
Deputy Head of Research
Geoffrey CHENG, CFA Fay ZHOU
Automobile & Defense
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Angus CHAN
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Morning Express
23 November 2017
Analyst Certification
The authors of this report, hereby declare that: (i) all of the views expressed in this report accurately reflect their personal views about any and all of the subject securities or issuers; and (ii) no part of any of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report; (iii) no insider information/ non-public price-sensitive information in relation to the subject securities or issuers which may influence the recommendations were being received by the authors. The authors of this report further confirm that (i) neither they nor their respective associates (as defined in the Code of Conduct issued by the Hong Kong Securities and Futures Commission) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to the date of issue of the report; (ii)) neither they nor their respective associates serve as an officer of any of the Hong Kong listed companies covered in this report; and (iii) neither they nor their respective associates have any financial interests in the stock(s) covered in this report except for one coverage analyst who is holding shares of Shimao Property Holdings Limited.
Disclosure of relevant business relationships
BOCOM International Securities Limited, and/or its associated companies, has investment banking relationship with Bank of Communications, Guolian Securities Co. Ltd., ,Bank of Zhengzhou Co. Ltd., Human Health Holdings Limited, COFCO Meat Holdings Limited, Hebei Yichen Industrial Group Corporation Limited, China Aircraft Leasing Group Holdings Limited, Orient Securities Company Limited, Wuxi Construction and Development Investment Co.China Development Bank Financial Leasing Co., Ltd, Phoenix Healthcare Group ,Co. Ltd, Everbright Securities Company Limited, China First Capital Group Limited, Jiayuan International Group Limited, Luzhou Xinglu Water (Group) Co., Ltd., Postal Savings Bank of China Co., Ltd., China Merchants Securities Co., Limited, Shandong International Trust Co., Ltd, Guangdong Kanghua Healthcare Co., Ltd, CSC Financial Co., Ltd, BOCOM International Holdings Company Limited, HPC Holdings Limited, Guotai Junan Securities Co., Ltd, Zhongyuan Bank Co., Ltd and Sichuan Energy Investment Development Co., Ltd within the preceding 12 months. BOCOM International Global Investment Limited currently holds more than 1% of the equity securities of Orient Securities Company Limited. BOCOM International Global Investment Limited currently holds more than 1% of the equity securities of Everbright Securities Company Limited. BOCOM International Global Investment Limited currently holds more than 1% of the equity securities of Guolian Securities Co., Ltd. BOCOM International Global Investment Limited currently holds more than 1% of the equity securities of Guotai Junan Securities Co., Ltd. BOCOM International Prosperity Investment Limited currently holds more than 1% of the equity securities of China YuHua Education Corporation Ltd.
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By accepting this report (which includes any attachment hereto), the recipient hereof represents and warrants that he is entitled to receive such report in accordance with the restrictions set forth below and agrees to be bound by the limitations contained herein. Any failure to comply with these limitations may constitute a violation of law. This report is strictly confidential and is for private circulation only to clients of BOCOM International Securities Ltd. This report is being supplied to you strictly on the basis that it will remain confidential. No part of this report may be (i) copied, photocopied, duplicated, stored or reproduced in any form by any means or (ii) redistributed or passed on, directly or indirectly, to any other person in whole or in part, for any purpose without the prior written consent of BOCOM International Securities Ltd. BOCOM International Securities Ltd, its affiliates and related companies, their directors, associates, connected parties and/or employees may own or have positions in securities of the company(ies) covered in this report or any securities related thereto and may from time to time add to or dispose of, or may be interested in, any such securities. Further, BOCOM International Securities Ltd, its affiliates and its related companies may do and seek to do business with the company(ies) covered in this report and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies), may sell them to or buy them from customers on a principal basis and may also perform or seek to perform investment banking, advisory, underwriting, financing or other services for or relating to such company(ies) as well as solicit such investment, advisory, financing or other services from any entity mentioned in this report. In reviewing this report, an investor should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest. The information contained in this report is prepared from data and sources believed to be correct and reliable at the time of issue of this report. This report does not purport to contain all the information that a prospective investor may require and may be subject to late delivery, interruption and interception. BOCOM International Securities Ltd does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report and accordingly, neither BOCOM International Securities Ltd nor any of its affiliates nor its related persons shall be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof. This report is general in nature and has been prepared for information purposes only. It is intended for circulation amongst BOCOM International Securities Ltd’s clients generally and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. The information and opinions in this report are not and should not be construed or considered as an offer, recommendation or solicitation to buy or sell the subject securities, related investments or other financial instruments thereof. The views, recommendations, advice and opinions in this report may not necessarily reflect those of BOCOM International Securities Ltd or any of its affiliates, and are subject to change without notice. BOCOM International Securities Ltd has no obligation to update its opinion or the information in this report. Investors are advised to make their own independent evaluation of the information contained in this research report, consider their own individual investment objectives, financial situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects before participating in any transaction in respect of the securities of company(ies) covered in this report. The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of investors. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to any law, regulation, rule or other registration or licensing requirement.
BOCOM International Securities Ltd is a subsidiary of Bank of Communications Co Ltd.
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