bcm_1913@hk_070915_2158

09 July 2015

Focus of the Day

Download our reports from Bloomberg: BOCMenter

Morning Express

Network Financials Internetization is set to become a major model of consumer finance

companies

Shanshan LI, CFA [email protected] Not Rated

The loan balance in the P2P industry reached RMB208.726bn in Jun, up 338% YoY, which

marked the first decline in growth rate since the beginning of 2015; while the

consolidated interest rate of loans in the P2P industry was 14.17%, down 0.37 ppt MoM.

There were 125 problematic platforms in Jun, a notable increase of 66 compared with

May. The return on Internet and bank wealth management products continued to decline

in Jun. As the State Council encouraged consumer finance companies to expand, along

with the diversification of investments, consumer finance companies are set to see rapid

growth and internetization is expected to be the major model of newly established

consumer finance companies. Google announced that it no longer charges service fees

from card issuers for payment made through Android Pay. Prior to that, the promotion of

Google Wallet lagged behind Apples ApplePay. At present, ApplePay still faces backlash

from certain retailers, mainly due to the fact that ApplePay still processes payment

through credit card issuers. Googles move helps the company capture the market share

in mobile payment. Apple will introduce its payment service ApplePay in the UK. With the

massive promotion of contactless smart cards such as EMV which is a well-developed

market, the popularization of ApplePay, the fact that more and more smartphones are

equipped with NFC, the improvement in mobile payment infrastructures of emerging

markets and the increase in payment scenarios, global NFC mobile payment will continue

to develop rapidly.

Prada (1913.HK)

Stock

BUY

LTBUYNeutral

SELLNegatives are yet to be priced in

Phoebe WONG [email protected]

Last Closing: HK$37.75 Upside: -26% Target Price: HK$28.00

We reiterate Sell and target price of HK$28 on Prada following our latest management

update. Despite the sequential improvement with May-Jun SSS decline narrowing to mid

single-digits from high single-digits in 1Q (revenue was flat vs. 1Q -5% in local currency),

we attribute it partly to the easy comps of the Japan market due to the VAT rise in Apr

Indices Close 1d % Ytd %

HSI 23,517 -5.84 -0.37 H Shares 11,107 -6.09 -7.32 SH A 3,676 -5.90 8.45 SH B 296 -7.38 1.81 SZ A 1,971 -2.49 33.31 SZ B 1,141 -4.79 10.87 DJIA 17,515 -1.47 -1.73 S&P 500 2,047 -1.67 -0.59 Nasdaq 4,910 -1.75 3.67 FTSE 6,491 0.91 -1.15 CAC 4,639 0.75 8.57 DAX 10,747 0.66 9.60

Source: Bloomberg

Indicators Close 3m % Ytd %

Brent 57.10 0.94 -0.40 Gold 1,156.15 -3.23 -2.42 Silver 15.05 -7.07 -4.19 Copper 5,520.00 -8.15 -12.38 JPY 120.84 -0.22 -0.88 GBP 1.54 4.42 -1.37 EURO 1.11 3.81 -8.54

bps change 3 m 6 m

HIBOR 0.39 0.00 0.00 US 10 yield 2.19 0.24 0.25

Source: Bloomberg

HSI Technical HSI 23,517 50 d MA 27,183

200 d MA 24,986 14 d RSI 20 Short Sell (HK$m) 23,874

Source: Bloomberg

BOCOM Int'l Corporate Access

17 Jul CT Environmental (1363.HK)


09 July 2015 Morning Express

last year. Most importantly, signs of fundamental recovery remain absent, in our view.

We believe the sustained global macro headwinds heightened by the recent pullback of

the stock markets, particularly China, are set to further dampen the already weak luxury

goods spending and affect tourist flow (particularly mainland Chinese). Apart from sales,

margin pressure remains Pradas key challenge amid operating deleverage and sustained

negative geographical and sales mix. While management is striving to find ways for

cost-cutting, we believe the help is limited in view of the groups high fixed-cost base

amplified by its aggressive new store openings over the past few years (particularly the

high-cost Greater China, the key affected market). Moreover, we are increasingly

concerned about the companys leather goods sales outlook. We believe its unique

product design no longer suits the market well amid fast-changing consumer taste and

intensifying competition. Further, as Prada does not and has no plan to follow the other

major peers to lower sales prices in Asia ex-Japan (though it adjusted prices up by mid to

high single-digits in Europe and Japan in order to narrow the pricing gap with Asia),

Pradas products in Asia ex-Japan have turned even less competitive, in our view. While

management is planning to launch more new styles and products with lower entry prices

from its Pre-fall collection, we remain skeptical of the consumer response. The key rising

star brands among Chinese consumers, such as Michael Kors, Saint Laurent, Kate Spade,

Tony Burch, Givenchy and MCM, have been taking market share from the traditional

luxury brands including Prada. Coupled with our FY16/17E net profit forecasts being

16%/27% below market consensus and with the stock trading at a 35% premium to the

global peers (PE 22.5x), we believe the negatives are yet to be priced in.

Sinopec (386.HK)

Stock

BUY

LTBUYNeutral

SELLQ2 profit jump expected, but uncertainty remains

Tony LIU [email protected]

Last Closing: HK$6.16 Target Price: HK$5.50

Sinopec announced profit alert for its Q2 results after market close on July 8. The

company expects over 1000% net profit growth compared with Q1. Sinopecs 1H net

profit and EPS will likely significantly beat market expectation and account for 74% and

72% of 2015 full-year consensus, respectively. The Refining and Chemical segments

benefited from low inventory cost and upward adjustment of oil product prices, while

Brent crude rebounded 15% in Q2. However, uncertainties still abound. We reiterate

Neutral rating and TP of HK$5.5.

Hang Seng Index (1 year)

21,00022,00023,00024,00025,00026,00027,00028,00029,000

Source: Company data, Bloomberg

HS China Enterprise Index (1 year)

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000


Shanghai A-shares (1 year)

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500


Shenzhen A-shares (1 year)

1,000

1,500

2,000

2,500

3,000

3,500




Shanghai Petrochem (338.HK)

SELL

NeutralLT

BUY

BUY

Stock

1H profit turned around

Tony LIU [email protected]

Last Closing: HK$2.47 Upside: +21.5% Target Price: HK$3.00

Shanghai Petrochem (338 HK) released profit alert for its 1H results. The company

expects a 1H net profit between Rmb1.68bn and 1.78bn under CAS, turning around from

a net loss of Rmb165mn in the same period last year. Shanghai Petrochem suffered loss

in 2014 due to the sharp decline of oil prices. The companys net profit turned positive in

Q1 2015 with Rmb52mn. Earnings are expected to reach a half yearly record high in 1H

2015.

Shanghai Petrochem mainly benefited from the upward adjustment of domestic oil

product prices on the back of Brent oil price recovery in Q2, and low crude inventory cost.

The group saw its costs of crude oil processing come down sharply, which led to higher

gross margin. Also, profit from its associates and JVs saw an increase.

Shanghai Petrochems A and H shares both dropped 41% in the past week, while SSE and

HSI dipped 13.5% and 10.4% in the same period, respectively. We expect Shanghai

Petrochems share price to rebound after the stock markets have settled down.

Renewable Energy Sector Highlights: China issued the Guiding Opinions on the Promotion of Smart

Grid Development; Canada made final ruling of harm on the

anti-dumping and countervailing duty case against Chinese PV products;

PV product prices improved further

Louis SUN [email protected] UP OPMPUP OPMP

1) Recently, the National Development and Reform Commission and the National

Energy Administration issued the Guiding Opinions on the Promotion of Smart Grid

Development. The Opinions give detailed explanations on the definition of smart grid,

the significance of smart grid development, general requirements, major tasks and

safeguard measures. Smart grids could better achieve network security, with reliable,

economical and efficient operation. Chinas PV power generation and wind power

generation are subject to serious power curtailment. The most effective solution is to

strengthen the access capability of the power grid with the non-continuous and

widespread power system through the development of a more intelligent grid

system.

2) According to media reports, the Canadian International Trade Tribunal made the final

ruling of harm on the anti-dumping and countervailing duty case against Chinese PV

modules and wafers on July 4, which ruled that Chinese PV products did not cause

any harm to the domestic industry in Canada but cause damage threat. The final

ruling of the damage threat showed that Canada is not going to impose anti-dumping



and countervailing duties against Chinese PV products in the meantime. However, if

the Chinese manufacturers continue to adopt low-cost strategy to compete with the

domestic companies in Canada, it is likely to lead to further sanctions. The pace of

internationalization of the Chinese PV industry will need to accelerate.

3) The prices of some PV products continued to recover this week, with the prices of

polysilicon/wafer/cell/cell module moving 0.26%/0.12%/0.33%/-0.18% WoW, and

-19.8%/-7.7%/-4.4%/-11.7% YTD. The prices of polysilicon and wafers have risen for 2

weeks and the prices of cells have climbed for 7 weeks, while the prices of cell

modules dipped further. The general rise in PV product prices reflected the

improving industry outlook, while the fall in cell module prices was mainly due to

lower combined costs.

Shanghai Pharma (2607.HK)

SELL

NeutralLT

BUY

BUY

Stock

DTP business provides an opportunity to penetrate

into Internet healthcare

David LI [email protected]

Last Closing: HK$16.62 Upside: +44.6% Target Price: HK$24.04

As a leading company in the China pharmaceutical industry, Shanghai Pharma stands

to benefit from the stable industry growth in the long term. (1) Production segment:

The company has a wide range of star products with sales focus on the core products;

(2) Distribution segment: As the industry leader, Shanghai Pharma benefits from the

stable industry growth in the long run; (3) Pharmaceutical retail segment: The DTP

business provides an opportunity to penetrate into Internet healthcare.

DTP business provides an opportunity to penetrate into Internet healthcare. We

think moving its DTP business from offline to online confers the following benefits: (1)

avoiding the medicare payment issue; (2) aligning with the interest of hospitals and

government guidance; (3) a large client base, since its DTP business is typically for

cancer, transplant rejection and other high-expense diseases which require

long-term drug use; and (4) improving the GPM of pharmaceutical retail given the

high unit price and GPM of special-effect drugs; and (5) concentration of demand in

the tier-one hospitals.

As one of the most crucial medical assets and a key enterprise under Shanghai

SASACs share incentive scheme, the company stands to benefit from a more

market-based incentive mechanism and SOE reform, in our view.

Initiate at BUY with a target price of HKD24.04, implying 44.6% upside.



Market Review

Hong Kong stocks plunged on Wednesday. The Hang Seng Index sank 1,458 points, or

5.8%, to 23,516. HKEx (388.HK) slumped 8.4%, extending losing streak to the ninth

straight session. COLI (688.HK) plummeted 10% as the worst blue-chip performer. Peer

CR Land (1109.HK) lost 8.4%. Insurers fell. China Life (2628.HK) dropped 8.8%. Ping An

(2318.HK) lost 6.2%. Brokers declined. Huatai (6886.HK) dropped 12.8%. CITIC Securities

(6030.HK) fell 9.5%.

US stocks fell sharply. The S&P 500 dropped 34.65 points, or 1.7%, to 2,046.69. The DJIA

fell 261.49 points, or 1.5%, to 17,515.42. European stocks rose. The Stoxx Europe 600

edged up 0.04% to 372.88.

News Reaction

PBOC issued a statement on supporting the stability of the stock market and claimed to

guard against the bottomline of no systematic risks. PBOC announced the Statement of

Supporting the Stability of the Stock Market at nearly 9:30 this morning, pursuant to

which it pinpointed that in order to support the stable development of the stock market,

PBoC actively helped China Securities Finance Corp obtain sufficient liquidity through

borrowing, issue of financial bonds, mortgage financing, loan refinancing and other

means.

SASAC requested SOEs not to reduce the shareholding when the market fluctuates. As

announced by SASAC, the domestic stock market saw abnormal fluctuations recently and

SASAC was highly concerned. In order to maintain market stability, create a favorable

market environment for SOE reforms and development and protect the statutory rights

of all kinds of investors, SASAC required all relevant SOEs to rise to undertake social

responsibility and not to reduce their shareholding of the listed companies amid stock

market fluctuations, as responsible shareholders.

Research institute Gartner adjusted its estimates of 2015 electronic equipment output

growth downward to 1.5%. According to foreign media, research institute Gartner

adjusted its estimates of the global output growth of products such as PCs, laptops and

smart phones from originally 2.8% down to 1.5%, up to 2.5 bn units. The reasons for the

downward adjustment were the slowdown in the pace of procurement of PCs in Western

Europe, Russia and Japan and higher selling prices on the back of a strong dollar.

Net profit of CITIC Securities (6030.HK) was RMB2.38 bn, doubled compared with May.

CITIC Securities released its financial data in June, of which its operating income and net

profit reached RMB4.55 bn and RMB2.38 bn, respectively, representing a growth of

90.9% and 100%.

Alibaba to further invest nearly US$140 mn in Singapore Post. Singapore Post and

Alibaba jointed announced that Alibaba will invest S$187.1 mn (approximately USD138

mn) to acquire approximately 5% equity interest of Singapore Post. Upon the transaction,

on fully diluted basis, Alibabas shareholding in Singapore Post will increase from 10.23%

to 14.51%.



Economic releases for this week - USA

Economic releases for this week - China

Date Time Event Survey Prior

1-Jul ISM manufacturing 53.1 52.8

2-Jul Change in Non-farm payrolls(k) 230.0 280.0

2-Jul Change in Private payrolls(k) 225.0 262.0

2-Jul Unemployment rate 5.4% 5.5%

2-Jul Initial jobless claims (k) 270.0 271.0

2-Jul Factory orders -0.5% -0.4%

Date Time Event Survey Prior

1-Jul Manufacturing PMI 50.4 50.2

1-Jul HSBC Manufacturing PMI 49.6 49.6

Source: Bloomberg

Source: Bloomberg

BOCOM Research Latest Reports

Data Report Analyst

8 Jul 2015 Energy Sector - Bocom Energy Weekly Tony Liu

8 Jul 2015 Intime (1833.HK) - 2Q SSS in-line; Maintain Neutral Anita Chu

8 Jul 2015 Sinotrans Limited (598.HK) - Company update - Stable 2Q15 expected Geoffrey Cheng, CFA

7 Jul 2015 Container Shipping Sector - Weekly container shipping commentary Geoffrey Cheng, CFA

6 Jul 2015 Summer Breeze - Downgrade Hengan; Switch to Vinda Summer Wang 6 Jul 2015 Property Sector - HK/CH Property Weekly 20150703 Luella Guo, Alfred Lau, CFA, FRM, Philip Tse, CFA,

FRM

6 Jul 2015 China Market Strategy - Shock And Awe Hao Hong, CFA

3 Jul 2015 Transportation Sector - Weekly transportation news wrap Geoffrey Cheng, CFA, Fay Zhou

2 Jul 2015 China South City Holdings Limited (1668.HK) - Disappointing FY15 property sales; recurrent income caught up

Alfred Lau, CFA, FRM, Luella Guo

2 Jul 2015 China Market Strategy - The CSRC Steps In. Now What Hao Hong, CFA

2 Jul 2015 Energy Sector - Bocom Energy Weekly Tony Liu

30 Jun 2015 Container Shipping Sector Weekly container shipping commentary Geoffrey Cheng, CFA

30 Jun 2015 HK retail sector Improved May sales, but skeptical of sustainability Phoebe Wong

29 Jun 2015 China Market Strategy The PBoC Cuts. Now What? Hao Hong, CFA

29 Jun 2015 China Property Sector How to outperform HSI 94 ppts in 140 trading days Philip Tse, CFA, FRM, Alfred Lau, CFA, FRM

29 Jun 2015 Property Sector HK/CH Property Weekly; Community service industry Luella Guo, Alfred Lau, CFA, FRM Philip Tse, CFA, FRM

26 Jun 2015 Luk Fook Holdings (590.HK) Downgrade to Neutral on stronger sales headwind Phoebe Wong, CPA

26 Jun 2015 Sa Sa (178.HK) FY15 in line; softening outlook sustained Phoebe Wong, CPA

26 Jun 2015 Transportation Sector Weekly transportation news wrap Geoffrey Cheng, CFA, Fay Zhou

26 Jun 2015 Far East Consortium (35.HK) All eyes on Brisbane Alfred Lau, CFA, FRM

Source: Company data, BOCOM International



Hang Seng Index Constituents

Company BBG Share Mkt 5 d Ytd 52-week PE Yield P/B

name code price cap chg chg Hi Lo 2014A 2015E 2016E

(HK$) (HK$m) (%) (%) (HK$) (HK$) (X) (X) (X) (%) (X)

CKH HOLDINGS 1 HK 105.20 406,038 -7.64 40.16 125.00 71.77 4.52 13.03 11.04 3.47 0.62

CLP HOLDINGS 2 HK 64.45 162,830 -2.20 -4.16 69.85 61.80 14.51 15.08 14.38 4.07 1.85

HONG KG CHINA GS 3 HK 15.44 178,537 -5.04 -4.37 17.27 15.00 24.94 23.01 21.39 2.06 3.39

WHARF HLDG 4 HK 49.20 149,127 -4.65 -12.14 63.90 48.00 4.15 12.43 11.22 3.68 0.49

HSBC HLDGS PLC 5 HK 65.75 1,284,896 -6.27 -11.15 84.40 64.35 12.47 9.93 9.60 5.78 0.87

POWER ASSETS 6 HK 66.35 141,608 -6.15 -11.83 82.80 64.05 2.32 16.42 16.60 4.04 1.15

HANG SENG BANK 11 HK 142.20 271,864 -6.14 10.06 161.50 123.20 17.98 13.07 14.07 3.94 1.95

HENDERSON LAND D 12 HK 49.00 161,718 -7.63 -0.74 59.46 40.73 9.59 16.14 15.70 2.04 0.68

HUTCHISON 13 HK 115.00 490,288 N/A 28.85 119.40 85.90 7.30 14.70 13.09 2.10 1.15

SHK PPT 16 HK 115.10 331,035 -8.36 -2.70 137.60 105.00 10.41 15.23 13.40 2.91 0.75

NEW WORLD DEV 17 HK 8.83 79,443 -12.92 -1.01 11.00 8.52 6.64 10.96 10.33 4.76 0.47

SWIRE PACIFIC-A 19 HK 93.00 136,036 -4.57 -7.92 109.80 90.20 12.64 13.05 11.98 4.19 0.64

BANK EAST ASIA 23 HK 30.90 80,839 -8.85 -1.12 35.85 29.00 10.78 12.23 11.36 3.59 1.05

GALAXY ENTERTAIN 27 HK 30.80 131,096 -0.32 -28.92 66.16 29.40 12.74 17.25 15.44 0.00 3.41

MTR CORP 66 HK 34.05 198,876 -5.68 7.08 40.00 29.25 12.66 19.10 19.00 3.08 1.21

SINO LAND 83 HK 11.68 71,080 -9.88 -6.71 14.20 11.04 9.18 13.71 12.98 4.28 0.62

HANG LUNG PPT 101 HK 20.55 92,177 -10.85 -5.52 26.45 19.86 7.87 14.08 14.71 3.70 0.70

KUNLUN ENERGY 135 HK 6.68 53,924 -15.34 -8.87 13.86 6.58 9.61 10.83 9.05 2.99 1.02

CHINA MER HOLD 144 HK 27.35 70,306 -17.74 4.79 37.00 23.05 17.10 14.70 13.27 2.82 1.04

WANT WANT CHINA 151 HK 7.58 99,539 -7.56 -25.83 11.16 7.20 20.80 18.45 16.57 2.48 6.29

CITIC 267 HK 12.06 300,334 -13.24 -8.77 16.88 11.70 5.77 5.60 5.24 1.78 0.72

CHINA RES ENTERP 291 HK 22.40 54,239 -10.40 37.93 26.15 14.04 N/A 110.34 53.98 1.21 1.11

CATHAY PAC AIR 293 HK 18.26 71,832 -4.20 8.05 20.80 13.56 22.80 10.26 9.12 1.97 1.39

TINGYI 322 HK 14.34 80,360 -9.47 -19.07 23.25 13.78 27.32 21.26 18.68 1.93 3.30

SINOPEC CORP-H 386 HK 6.16 959,395 -7.92 -1.44 8.23 5.90 12.39 16.38 10.91 4.06 0.98

HKEX 388 HK 203.40 243,559 -25.66 18.46 311.40 151.10 42.64 26.07 22.84 1.96 10.40

LI & FUNG LTD 494 HK 5.93 49,904 -3.58 -17.51 10.48 5.82 11.84 13.42 11.77 5.75 2.46

CHINA OVERSEAS 688 HK 22.50 221,863 -17.73 -2.39 34.05 19.80 6.65 7.06 6.19 2.44 1.38

TENCENT 700 HK 134.80 1,263,865 -12.86 19.82 171.00 104.50 41.17 32.08 24.80 0.27 11.46

CHINA UNICOM 762 HK 10.00 239,471 -18.03 -3.85 16.00 9.68 16.18 13.32 12.59 2.50 0.83

LINK REIT 823 HK 45.10 103,431 -0.66 -7.11 53.65 40.85 3.81 22.67 21.18 4.05 0.88

CHINA RES POWER 836 HK 18.66 89,556 -13.81 -6.70 24.90 17.66 9.61 7.21 7.11 4.18 1.26

PETROCHINA-H 857 HK 7.96 2,662,164 -7.98 -7.44 11.70 7.72 10.80 19.19 12.32 4.14 0.99

CNOOC 883 HK 9.64 430,401 -12.36 -7.66 15.88 9.41 5.73 14.24 8.57 5.88 0.91

CCB-H 939 HK 6.39 1,618,246 -9.75 0.31 7.98 5.34 5.56 5.47 5.20 5.88 0.98

CHINA MOBILE 941 HK 89.95 1,841,729 -9.37 -0.61 118.00 75.55 13.36 13.42 12.59 3.21 1.72

LENOVO GROUP 992 HK 8.91 98,978 -17.04 -12.65 14.30 8.80 14.72 11.16 9.82 2.97 3.13

HENGAN INTL 1044 HK 81.75 100,096 -11.24 0.86 107.40 74.05 25.63 21.59 18.78 2.45 5.67

CHINA SHENHUA-H 1088 HK 14.72 438,172 -16.74 -35.86 24.40 14.50 6.06 7.97 7.48 6.28 0.79

CHINA RES LAND 1109 HK 19.28 133,629 -23.34 -5.72 29.10 14.96 7.64 8.99 7.75 2.57 1.16

COSCO PAC LTD 1199 HK 9.11 26,787 -13.40 -17.33 12.80 9.00 11.74 10.22 9.40 3.41 0.73

AIA 1299 HK 47.10 567,432 -7.19 9.15 58.20 38.95 20.95 18.69 17.11 1.06 2.38

ICBC-H 1398 HK 5.50 2,319,801 -10.71 -2.83 7.10 4.74 5.64 5.58 5.33 N/A 1.00

BELLE INTL 1880 HK 8.00 67,474 -10.41 -8.26 12.26 7.81 11.10 10.74 10.02 5.31 2.17

SANDS CHINA LTD 1928 HK 28.05 226,329 7.47 -26.47 59.80 25.90 11.45 17.39 16.83 7.10 4.54

PING AN-H 2318 HK 85.65 843,083 -18.19 8.28 125.80 57.05 13.91 11.50 10.50 1.09 2.11

BOC HONG KONG HO 2388 HK 28.05 296,566 -13.16 8.09 33.70 23.00 12.07 10.59 9.87 3.99 1.68

CHINA LIFE-H 2628 HK 27.90 1,099,914 -17.33 -8.37 41.00 20.25 19.59 13.94 12.21 1.79 2.22

BANKCOMM-H 3328 HK 7.60 658,868 -5.94 4.97 8.61 5.13 6.81 6.92 6.70 4.44 0.92

BANK OF CHINA-H 3988 HK 4.34 1,834,814 -13.89 -0.69 5.68 3.42 5.68 5.76 5.45 5.47 0.91

Hang Seng Index 23,517 15,253,173 -10.4 -0.4 28,588.5 22,529.8 9.8 11.2 10.2 3.5 1.3

Source: Bloomberg



China Ent Index Constituents

Company BBG Share Mkt 5 d Ytd 52-week PE Yield P/B

name code price cap chg chg Hi Lo 2014A 2015E 2016E

(HK$) (HK$m) (%) (%) (HK$) (HK$) (X) (X) (X) (%) (X)

TSINGTAO BREW-H 168 HK 45.65 60,898 -2.98 -13.21 64.00 42.00 25.64 23.22 21.05 N/A 3.10

JIANGXI COPPER-H 358 HK 10.04 49,423 -22.41 -24.51 18.50 9.65 9.58 12.23 11.13 2.49 0.61

SINOPEC CORP-H 386 HK 6.16 959,395 -7.92 -1.44 8.23 5.90 12.39 16.38 10.91 4.06 0.98

CHINA RAIL GR-H 390 HK 6.41 291,113 -23.42 0.47 12.30 3.96 10.54 9.41 8.41 1.52 1.14

DONGFENG MOTOR-H 489 HK 9.17 79,010 -11.83 -16.48 15.20 8.91 4.92 5.00 4.55 2.72 0.86

CHINA TELECOM-H 728 HK 4.05 327,776 -10.99 -10.79 6.17 3.84 14.74 13.07 11.75 2.35 0.91

AIR CHINA LTD-H 753 HK 8.76 203,501 0.00 39.71 10.20 4.53 22.58 10.66 10.05 0.74 1.70

PETROCHINA-H 857 HK 7.96 2,662,164 -7.98 -7.44 11.70 7.72 10.80 19.19 12.32 4.14 0.99

HUANENG POWER-H 902 HK 8.75 166,135 -18.98 -16.51 11.90 8.23 9.22 7.44 7.51 5.43 1.44

ANHUI CONCH-H 914 HK 23.70 123,142 -12.87 -18.42 34.15 22.55 9.12 9.48 8.65 3.43 1.53

CHINA LONGYUAN-H 916 HK 7.66 61,559 -11.14 -5.08 11.36 7.12 19.26 13.63 11.57 0.97 1.49

CCB-H 939 HK 6.39 1,618,246 -9.75 0.31 7.98 5.34 5.56 5.47 5.20 5.88 0.98

CITIC BANK-H 998 HK 5.50 456,526 -11.00 -11.58 7.40 4.66 5.05 4.97 4.65 N/A 0.76

SHANDONG WEIG-H 1066 HK 4.98 22,292 -13.99 -20.45 8.92 4.11 16.45 15.27 12.98 1.66 1.81

CHINA SHENHUA-H 1088 HK 14.72 438,172 -16.74 -35.86 24.40 14.50 6.06 7.97 7.48 6.28 0.79

SINOPHARM-H 1099 HK 29.55 81,768 -14.22 7.65 41.75 21.80 21.31 18.11 14.83 1.31 2.39

BYD CO LTD-H 1211 HK 30.40 114,949 -34.69 0.16 62.30 18.70 135.19 30.65 24.75 0.00 2.38

ABC-H 1288 HK 3.59 1,554,084 -13.91 -8.42 4.55 3.38 5.14 5.04 4.77 6.33 0.83

NEW CHINA LIFE-H 1336 HK 33.35 165,770 -27.97 -14.81 56.55 26.20 13.02 9.25 8.39 0.79 1.72

PICC GROUP-H 1339 HK 3.76 159,514 -24.19 3.58 5.85 3.04 9.71 8.22 7.66 0.31 1.38

CHINA CINDA-H 1359 HK 3.36 121,822 -22.22 -11.11 5.23 3.20 8.15 6.31 5.26 3.66 1.04

ICBC-H 1398 HK 5.50 2,319,801 -10.71 -2.83 7.10 4.74 5.64 5.58 5.33 N/A 1.00

CHINA COM CONS-H 1800 HK 8.90 266,732 -23.28 -4.61 17.00 5.33 8.26 7.57 6.71 2.41 0.99

CHINA COAL ENE-H 1898 HK 3.63 93,684 -21.60 -25.31 5.60 3.45 246.32 N/A 111.76 0.83 0.44

MINSHENG BANK-H 1988 HK 7.98 431,533 -21.46 -21.76 11.88 6.97 4.88 4.80 4.47 2.90 0.91

CHINA VANKE-H 2202 HK 17.02 183,441 -10.80 -1.62 21.60 13.36 9.53 8.20 7.06 3.67 1.71

GUANGZHOU AUTO-H 2238 HK 6.00 77,941 -16.43 -15.01 9.87 5.78 9.67 8.21 6.67 3.33 0.87

PING AN-H 2318 HK 85.65 843,083 -18.19 8.28 125.80 57.05 13.91 11.50 10.50 1.09 2.11

PICC P&C-H 2328 HK 14.72 218,276 -16.65 -2.39 20.15 11.03 11.33 10.00 9.53 2.29 2.04

GREAT WALL MOT-H 2333 HK 38.00 146,594 0.00 -13.83 60.70 28.90 11.51 8.38 6.97 2.63 2.77

WEICHAI POWER-H 2338 HK 20.55 48,764 -20.50 -37.16 36.40 19.44 6.55 8.72 7.75 1.52 1.01

GREAT WALL MOT-H 2333 HK 38.00 146,594 0.00 -13.83 60.70 28.90 11.51 8.38 6.97 2.63 2.77

CHINA PACIFIC-H 2601 HK 30.85 309,927 -17.07 -21.70 47.10 26.55 20.18 14.67 13.11 2.02 1.91

CHINA LIFE-H 2628 HK 27.90 1,099,914 -17.33 -8.37 41.00 20.25 19.59 13.94 12.21 1.79 2.22

CHINA OILFIELD-H 2883 HK 10.02 79,580 -18.93 -25.56 23.40 9.73 5.09 9.02 7.98 5.98 0.81

CHINA NATL BDG-H 3323 HK 5.85 31,584 -20.19 -22.41 9.85 5.69 4.24 5.03 4.73 3.52 0.62

BANKCOMM-H 3328 HK 7.60 658,868 -5.94 4.97 8.61 5.13 6.81 6.92 6.70 4.44 0.92

CM BANK-H 3968 HK 19.30 563,060 -14.60 -0.82 26.85 13.12 6.96 6.34 5.69 4.34 1.24

BANK OF CHINA-H 3988 HK 4.34 1,834,814 -13.89 -0.69 5.68 3.42 5.68 5.76 5.45 5.47 0.91

CITIC SEC-H 6030 HK 19.10 331,501 -31.66 -34.59 40.50 16.30 12.11 10.26 8.81 N/A 1.62

HAITONG SECURI-H 6837 HK 13.90 237,451 -32.20 -28.79 27.90 11.70 13.91 8.90 8.03 2.25 1.56

Hang Seng China Ent Indx 11,107 5,107,626 -14.44 -7.32 14,962.74 10,097.35 8.12 7.93 7.19 3.83 1.13

Source: Bloomberg



BOCOM International

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Main: + 852 3710 3328 Fax: + 852 3798 0133 www.bocomgroup.com

Rating System

Company Rating Sector Rating

Buy: Expect more than 20% upside in 12 months Outperform (OP): Expect more than 10% upside in 12 months

LT Buy: Expect more than 20% upside but longer than 12 months Market perform (MP): Expect low volatility

Neutral: Expect low volatility Underperform (UP): Expect more than 10% downside in 12 months

Sell: Expect more than 20% downside in 12 months

Research Team

Head of Research @bocomgroup.com @bocomgroup.com

Raymond CHENG, CFA, CPA, CA (852) 2977 9393 raymond.cheng

Strategy Economics

Hao HONG, CFA (852) 2977 9384 hao.hong Miaoxian LI (86) 10 8800 9788 - 8043 miaoxian.li

Banks/Network Financials Metals & Mining

Qingli YANG (852) 2977 9212 yangqingli Jovi LI (852) 2977 9243 jovi.li

Shanshan LI, CFA (86) 10 8800 9788 - 8058 lishanshan

Li WAN, CFA (86) 10 8800 9788 - 8051 Wanli

Consumer Discretionary Oil & Gas/ Gas Utilities

Phoebe WONG, CPA (852) 2977 9391 phoebe.wong Fei WU (852) 2977 9392 fei.wu

Anita CHU (852) 2977 9205 anita.chu Tony LIU (852) 2977 9390 xutong.liu

Consumer Staples Property

Summer WANG (852) 2977 9221 summer.wang Alfred LAU, CFA, FRM (852) 2977 9235 alfred.lau

Shawn WU (852) 2977 9386 shawn.wu Philip TSE, CFA, FRM (852) 2977 9220 philip.tse

Luella GUO (852) 2977 9211 luella.guo

Environmental Services Renewable Energy

Wallace CHENG (852) 2977 9387 wallace.cheng Louis SUN (86) 21 6065 3606 louis.sun

Healthcare Telecom & Small/ Mid-Caps

David LI (852) 2977 9203 David.Li Zhiwu LI (852) 2977 9209 lizhiwu

Insurance & Brokerage Transportation & Industrial

Jerry LI (852) 2977 9389 liwenbing Geoffrey CHENG, CFA (852) 2977 9380 geoffrey.cheng

Jennifer ZHANG (852) 2977 9250 yufan.zhang Fay ZHOU (852) 2977 9381 fay.zhou

Internet Automobile

Yuan MA, PhD (86) 10 8800 9788 - 8039 yuan.ma Wei YAO (86) 21 6065 3675 wei.yao

Connie GU, CPA (86) 10 8800 9788 - 8045 conniegu



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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.

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