china and hk daily_2010!09!02_e
TRANSCRIPT
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Instit utional portal: htt p://research.kgi.com 1
DAILY Navigator
China and Hong Kong September 2, 2010
Top Charts of th e Day Highli ght
CN Petrochemicals sector Price spreadswidened MoM in August
HK Yanzhou Coal Mining (01171.HK, HK$16.24, N): Australian subsidiary to rampup out put in 2010Business back into high gear thanks to output ramp-up at Australian subsidiary. Coal businessto maintain solid profitability. Chinas coal supply to outstrip demand mildly in 2H10; basedon 6M target price of Rmb17.3, we resume coverage with Neutral rating.
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Recent In-depth Reports
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(03889.HK/3889 HK)11/11 Xiamen Int' l Port
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price sensitivity are key themes20/11 Cross-strait investment strategy23/11 Power transmission & distribut ion
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03/05 Tianneng Power (00819.HK/819HK)
20/05 Regent Manner (01997.HK/1997HK)
11/06 Chigo (00449.HK/449 HK)30/06 China market strategy - 3Q10
02 Top Charts of the Day VCN Petrochemicals sector Price spreads
widened MoM in August
03 Top Stock Ideas BHK Yanzhou Coal Mining (01171.HK,HK$16.24, N): Australian subsidiary toramp up output in 2010
06 Industry update GCN Engineering plastics: PRET benefitingfrom robust car-use plastics demandCN Solar sector: Competition for materials
highlights PV market vitality
08 Trader Daily JCN GEM leading declining tape
HK Shares up as China manufacturingfigures show gain
10 Statistics KHK Valuation table
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DAILY Navigator China Top Charts of the Day V
Petrochemicals sector Price spreads w idenedMoM in August
1 Stephen Wang2 852.2878.6898 3 [email protected]
1 Guo Zhang (Coordinator) 2 86.21.6125.8687
Conclusion
In August, the spreads between main domestic petrochemicals prices and mark-to-marketnaphtha price (naphtha price leads petrochemicals prices by one month) began to rise MoM,as the spreads between the prices of LLDPE, HDPE, LDPE, PP, PS and ABS and the price ofnaphtha expanded by a respective 24.1%, 28.9%, 21.1%, 15.0%, 6.2% and 13.7%. Wethink that petrochemicals gross margins expanded in August because demand picked up,while vendors began stocking up on products for the upcoming September-October highseason. Also, naphtha price was low in July, which helped lower production costs for plasticsand other petrochemicals. In July, Singapore naphtha FOB price averaged US$69.2/bbl, downsome 5% MoM. We think that, with adjustment of product mix speeding up and the peak
season approaching, sector profitability should rebound to benefit Sinopec (600028.SS),Shanghai Petrochemical (600688.SS) and PetroChina (601857.SS).
In August, LLDPE and HDPE pri ce spreads w it h naph tha w idened
LLDPE and HDPE price spread with naphtha, Rmb/mt
Source: Bloomberg; Chemsino; KGI Research
In August, LDPE and PP pri ce spreads w it h naph tha expand edLDPE and PP price spread with naphtha, Rmb/mt
Source: Bloomberg; Chemsino; KGI Research
In Augu st, PS and ABS price spreads wit h napht ha f att ened
PS and ABS price spread with naphtha, Rmb/mt
Source: Bloomberg; Chemsino; KGI Research
In August, LLDPE and HDPE pricespreads with naphtha rose byRmb846/mt and Rmb954/mt, or24.1% and 28.9% MoM
In August, LDPE and PP pricespreads with naphtha rose byRmb958/mt and Rmb641/mt, or21.1% and 15% MoM
In August, PS and ABS pricespreads with naphtha rose byRmb340/mt and Rmb1,187/mt, or6.2% and 13.7% MoM
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PS-naphtha ABS-naphtha
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DAILY Navigator Hong Kong Top Stock Ideas B
50% and 20%, both higher than the industry averages. In 1H10gross margin and net margin were 47.8% and 23.4%, respectively,which is more in line with the industry averages. The coal businessaccounted for 95% of sales and 98.4% of gross profit. In 1H10, thecoal business maintained brisk profitability, as its gross margin was
49.8% , largely in line with the f ive-year average.
In 1H10, the railway transport business handled 9.93mn mt of cargo,up 1.36mn mt (or 15.9% ) YoY. Transport sales surged 121.7% YoYto Rmb260mn in 1H10, as the firm raised the freight rate toRmb0.57/ton-km from Rmb0.32/ton-km f rom January 1, 2010.
Figure 4: Blended gross margin steadyGross margin and net margin, percent
Source: Company data; KGI Asia Limited
China is suffering from severe methanol oversupply, with capacityof 30mn mt and demand of 20mn m in the market. The domesticprice has fallen to around Rmb2,000/mt currently from nearly
Rmb2,600/mt in early March. In 1H10, Yanzhou Coal recordedmethanol output of 2.45mn mt, including 2.12mn mt at YulinEnergy & Chemical and 33k mt at Shanxi Energy & Chemical.Production cost is Rmb1,815/mt at Yulin Energy & Chemical andRmb1,862/mt at Shanxi Energy & Chemical. In 1H10, Yulin Energy& Chemical made losses of Rmb148mn and expenses wereestimated at Rmb685/mt. Judging from market conditions,domestic methanol prices are unlikely to pick up in 2H10, making itfor Yanzhou Coal to turn around methanol business any time soon.
Figure 5: Coal business made up 95% of sales in 1H10Sales weighting by business, percent
Source: Company data; KGI Asia Limited
Domestic coal prices to consolidate in 2H10The exit price of Shanxi quality mixed coal (>5500 Kcal) atQinghuangdao Port now averages Rmb725/mt, down 4.6% (or
Rmb35/mt) from the peak at end-May. The price of mixed coal(5000 Kcal) in Yanzhou, Shandong, where the firm is based, hasdropped 7.1% (or Rmb50/mt ) from the peak of Rmb700/mt in earlyJune. We think coal prices will remain in mild fluctuations for theremainder of the year. The price of Australian BJ steam coal fell
further in August. In contrast, coking coal prices have fared well.
To achieve the carbon emission goal set for the 11th Five-Year Plan,the government will step up efforts to phase out uncompetitivecapacity. This, coupled with a slowing domestic economy, willundercut coal demand. We expect domestic coal prices toconsolidate in 2H10. As the price volatility will be mild, YanzhouCoals earnings will not take a big hit. The firm sources less than30% of coal through contracts the prices are set annually andnearly 70% from t he spot market.
Figure 3: Coal prices in Yanzhou, Shandong reflect seasonalityCoal prices, Rmb/mt
Source: ht tp:// www.sxcoal.com; KGI Asia Limited
Valuati on and Recommendat ion
In 2H10, coal demand will be hurt by Chinas slowing economy andthe governments efforts to phase out uncompetitive capacity inhigh energy-consuming sectors. As such, coal supply will outstripdemand slightly. Yanzhou Coal will increase coal output by 14%CAGR over the next three years, with output increasesconcentrated in 2010. We forecast 2010-12 EPS of Rmb1.40,Rmb1.53, and Rmb1.61, respectively. Considering moderate coaloversupply in the broader market and the firms fast output growthin 2010, we have set our 2011 target PE at 10x. Based on 10x our
2011 EPS forecast, we have derived a 6-month target price ofHK$17.3, implying 6.5% upside from the current price ofHK$16.24. As such, we have rated t he stock Neutral.
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Mixed coal Clean coking coal
Year-end Sales Gross profit s EBIT EBITDA Net profits EPS(Rmb mn) (Rmb mn) (Rmb mn) (Rmb mn) (Rmb mn) (Rmb)
2009A 20,253 9,130 5,310 7,115 4,117 0.842010F 32,461 14,607 9,349 11,901 6,880 1.402011F 35,928 16,204 10,311 13,098 7,524 1.532012F 37,872 17,156 10,945 14,001 7,918 1.61Year-end EV/Sales EV/EBIT EV/EBITDA P/E EV/Inv. C. ROAE
(x) (x) (x) (x) (x) (%)2009A 2.6 18.8 7.4 12.7 1.0 14.72010F 2.8 9.8 7.7 12.3 1.5 21.42011F 2.5 8.7 6.8 11.3 1.3 19.62012F 2.2 7.7 6.0 10.7 1.1 17.5Sector 52-week trading range (HK$) 10.6-22
17.30 Mkt cap-HK$ bn/US$ mn 31.3/4,0076.5 Outstanding shares (mn) 4,918 52 Free floating shares (%) 47
2.9 The Largest Shareholder (%): 52.9 7.2 3M avg. daily trading (mn) 19.82.4 Abs. Performance (3,6,12M)(%) -6.4; -4.1; 46.5
19.4 Rel. Performance (3,6,12M)(%) -8.4; 1.4; 45.8
Dividend yield-Dec '10E (%)Book value/shr-Dec '10E(Rmb)P/B-Dec '10E (x)Net debt/equity-Dec '10E (%)
Engery12M target price (HK$/shr)Upside/downside (% )The percentile of excess return (%)
Yan Kuang group
Railway transport[1.7]
Thermal power[0.1]
Coal-fired power[0.6]Coal chemical
[2.7]
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Year to 31 Dec (Rmb mn) 2008A 2009A 2010F 2011F 2012FTotal Assets 32,339 62,433 74,883 82,509 89,717Current Assets 14,994 20,001 29,553 35,524 41,713
Cash & ST Investments 9,612 12,092 17,458 22,249 28,244Inventories 820 886 1,373 1,409 1,381Accounts Receivable 2,977 4,724 7,115 7,875 8,301Others 1,586 2,299 3,607 3,992 3,787
Non-current Assets 17,344 42,432 45,330 46,984 48,004LT Investments 970 1,237 1,234 1,229 1,223Net fixed Assets 14,149 18,877 18,676 18,974 18,869Others 2,225 22,318 25,421 26,782 27,912
Total Liabilit ies 5,584 33,281 39,687 40,768 41,036Current Liabilit ies 5,297 10,410 15,695 14,356 13,221
Accounts Payable 910 1,367 2,446 2,702 2,838ST Borrowings 82 1,598 2,429 2,672 2,808Others 4,305 7,445 10,820 8,982 7,574
Long-term Liabili t ies 287 22,870 23,993 26,412 27,816Long-term Debts 176 20,912 21,859 24,045 25,275Others 111 1,959 2,134 2,367 2,541
Shareholders' Equity 26,755 29,152 35,196 41,741 48,680Common Stock 4,918 4,918 4,918 4,918 4,918Capital Surplus 8,705 9,625 9,625 9,625 9,625Retained Earnings 13,132 14,608 20,652 27,197 34,137Preferred Stock 0 0 0 0 0
Year to 31 Dec (Rmb mn) 2008A 2009A 2010F 2011F 2012FGrowth (% YoY)Sales 64.8 (18.7) 60.3 10.7 5.4OP 97.1 (38.4) 76.1 10.3 6.1EBITDA 78.0 (27.1) 67.3 10.1 6.9NP 100.9 (36.5) 67.1 9.4 5.2EPS 100.9 (36.5) 67.1 9.4 5.2Profitability (%)Gross Margin 50.0 45.1 45.0 45.1 45.3Operating Margin 34.6 26.2 28.8 28.7 28.9EBITDA Margin 39.2 35.1 36.7 36.5 37.0Net Profit Margin 26.1 20.3 21.2 20.9 20.9ROAA 22.2 8.7 10.0 9.6 9.2ROAE 26.9 14.7 21.4 19.6 17.5StabilityGross Debt/Equity (%) 1.0 77.2 69.0 64.0 57.7Net Debt/Equity (%) Net cash 35.7 19.4 10.7 Net cashInterest Coverage (x) 232.3 126.7 32.0 21.2 16.8Interest & ST Debt Coverage (x) 74.1 3.5 3.6 3.4 3.3Cash Flow Interest Coverage (x) 182.0 155.1 31.9 14.8 13.9Cash Flow/Interest & ST Debt (x) 58.0 4.3 3.6 2.4 2.7
Current Ratio (x) 2.8 1.9 1.9 2.5 3.2Quick Ratio (x) 2.7 1.8 1.8 2.4 3.1Net Debt (Rmb mn) (7,697) 532 8,624 5,649 2,154Per Share Data (Rmb)EPS 1.32 0.84 1.40 1.53 1.61CFPS 1.55 1.20 1.92 2.10 2.23BVPS 5.44 5.93 7.16 8.49 9.90SPS 5.06 4.12 6.60 7.30 7.70EBITDA/Share 1.75 1.08 1.90 2.10 2.23DPS N.D. 0.43 0.50 0.50 0.55ActivityAsset Turnover (x) 0.9 0.4 0.5 0.5 0.4Days Receivables 43.6 85.1 80.0 80.0 80.0Days Inventory 12.0 16.0 15.4 14.3 13.3Days Payable 13.3 24.6 27.5 27.5 27.4
Cash Cycle 42.3 76.5 67.9 66.9 66.0
Year to 31 Dec (Rmb mn) 2008A 2009A 2010F 2011F 2012FSales 24,903 20,253 32,461 35,928 37,872
Cost of Goods Sold 12,452 11,123 17,854 19,724 20,716Gross Profit 12,451 9,130 14,607 16,204 17,156
Operating Expenses 3,832 3,820 5,259 5,892 6,211Operating Profit 8,619 5,310 9,349 10,311 10,945Net Interest Income 237 142 (127) (272) (382)
Interest Income 275 188 177 238 303Interest Expense 38 45 304 510 685
Net Investment Income/(Loss) 0 0 0 0 0Net other Non-op. Income/(Loss) 9 233 196 254 261Net Extraordinaries 9 (15) 5 10 17Pretax Income 8,875 5,671 9,423 10,304 10,841Income Taxes 2,386 1,553 2,543 2,779 2,922Net Prof it Af ter Ext raordinari es 6,489 4,117 6,880 7,524 7,918EBITDA 9,763 7,115 11,901 13,098 14,001EPS (Rmb) 1.32 0.84 1.40 1.53 1.61
Year to 31 Dec (Rmb mn) 2008A 2009A 2010F 2011F 2012FOperating Cash Flow 6,983 6,995 9,703 7,553 9,515
Net Profit 6,489 4,117 6,880 7,524 7,918Depreciation & Amortization 1,144 1,805 2,552 2,787 3,056Change in Working Capital (658) 1,071 268 (2,763) (1,465)Others 7 2 3 5 6
Investment Cash Flow (2,216) (26,894) (5,454) (4,446) (4,081)Net CAPEX (1, 76 9) (6,532) (2, 351) (3,085) (2,951)Change in LT Investment 330 (269) 0 0 0Change in Other Assets (777) (20,093) (3,103) (1,361) (1,130)
Free Cash Flow 4,766 (19,899) 4,249 3,107 5,434Financing Cash Flow (1,525) 22,379 1,117 1,683 561
Change in Share Capital (1,151) (1,721) (836) (979) (979)Net Change in Debt (72) 22,252 1,778 2,429 1,366
Change in Other LT Liab. (302) 1,848 175 233 174Net Cash Flow 3,241 2,480 5,366 4,790 5,995
Year to COGS Dep./Amortization SGA Exp. Operating31-Dec Revenue Revenue Revenue Margin2008A 45.4% 4.6% 15.4% 34.6%2009A 46.0% 8.9% 18.9% 26.2%2010F 47.1% 7.9% 16.2% 28.8%2011F 47.1% 7.8% 16.4% 28.7%2012F 46.6% 7.9% 16.4% 29.1%
Year to perat ing Working capi tal Net PPE Other Assets Capital31-Dec Revenue Revenue Revenue Turnover
2008A 0.1 0.6 0.1 1.42009A 0.0 0.9 1.1 0.52010F 0.0 0.6 0.8 0.72011F 0.1 0.5 0.7 0.72012F 0.1 0.5 0.7 0.7
Year to Operat ing Capi tal Cash 1 - Tax After- tax Return31-Dec Margin Turnover Rate on Inv. Capital2008A 34.6% 1.4 73.1% 35.4%2009A 26.2% 0.5 72.7% 9.3%2010F 28.8% 0.7 73.0% 15.3%2011F 28.8% 0.7 73.0% 15.3%2012F 28.7% 0.7 73.0% 15.3%
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DAILY Navigator Hong Kong Top Stock Ideas B
Balance Sheet
Source: Company data; KGI Asia Limited estimates
Key Ratios
Source: Company data; KGI Asia Limited estimates
Prof it & Loss
Source: Company data; KGI Asia Limited estimates
Cash Flow
Source: Company data; KGI Asia Limited estimates
Rates of Retur n o n Invested Capit al
Source: Company data; KGI Asia Limited estimates
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DAILY Navigator China Industry update g
Engineering plast icsPRET benefit ing from robust car-use plastics demand
1 Stephen Wang2 852.2878.6898 3 [email protected]
1 Guo Zhang (Coordinator)2 86.21.6125.8687
Demand fo r car-use engineering pl asti cs st rong i n China PRET growing on capacity expansion & new products Market competition boosts PRETs value
Demand f or car-use engineering plastics strong in ChinaDemand for car-use engineering plastics in China has beengrowing on rising car sales, higher engineering plastics usage percar, the substitution of locally-made car components for importsand government policy to reduce carbon emissions and save
energy. We forecast car sales will grow by 10% per annum,engineering plastics consumption per car to rise by 5% per yearand the substitution rate of locally-made parts to increase 2.0 pptsper year in the coming few years. We therefore estimate demandfor car-use engineering plastics wil l grow by around 19% per yearin China. Assuming car sales of 15.5mn units in 2010 andengineering plastics demand of 115 kg per car, we forecastdemand for car-use engineering plastics of 1.8mn metric tons (mt)in 2010 and 3.6mn mt by 2014, indicating great growth potential.
PRETs earn ings in 1H10 in l ine w it h consensusShanghai PRET (002324.SZ) posted sales of Rmb375mn in 1H10,up 89% YoY, and net prof its of Rmb56.1mn, up 31% YoY. Grossmargin dropped markedly, albeit within market expectation.
PRETs earnings to grow on capacity expansion & new productsSupport ed by robust demand, a strategic location and leadership inthe car-use engineering plastics market, PRETs new plant willcommence production as scheduled. We forecast shipments will
jump 35% YoY in 2011 to 72.9k mt and 26% YoY in 2012 to91.5k mt. Shanghai PRET raised prices by 10% across the board inMay. By contrast, the prices of raw materials PP, PE, PS and ABS fellin June-July from the first five months of the year, by a respective
6%, 12%, 7% and 1%. Hence, we forecast gross margin willrebound in 2H10. However, we forecast it will decline 0.9 ppts in2011 to 21.4% on reduced demand and intensified competition.
Shanghai PRET has been developing new materials/products andexpanding its market share in China. It plans to invest Rmb254mnin a liquid crystal polyester (LCP) project over three stages. Thecompany has patents on this product, which has a wide range ofapplications. China imports 20-25k mt of LCP a year. We forecastglobal demand for LCP will grow at an annual pace of 20-30%.
Figure 1: PRETs shipments grow ing f astPRET shipments, 000 mt (LHS); change YoY, percent (RHS)
Source: Company data; KGI Research
Figure 2: PRETs gross margin comparat ively stablePRET gross margin, percent
Source: KGI Research
Market competition boosts PRETs valueChinas engineering plastics market is fragmented, while thedevelopment of its car industry is accelerating. The use ofengineering plastics in cars is growing. As such, PRET, a dedicatedengineering plastics maker, will benefit. Currently, over 90% ofsales are generated from car-use engineering plastics. However,the accreditation of products takes a long time and the process isstringent. With the percentage of cars developed by Chinese firmsincreasing and the concentration of the auto industry rising, PRET,as a leading maker of engineering plastics, is set to benefit.
Conclusion
As PRETs new plants come on stream, we estimate output willgrow at an annual rate of 25-30% over the next few years. In lightof the growing car-use engineering plastics market, PRETs focus onthis market and its strong R&D, we think the company deserves ahigher PE. Current sector PE average is 35x. PRETs shares aretrading at a 2010 PE of 41x, which we consider fair.
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DAILY Navigator China Industry update g
Solar sectorCompetition for materials highlights PV market vitality
1 Stephen Wang2 852.2878.6898 3 [email protected]
1 Honda Wei (Coordinator)2 86.21.6125.8673
Competition for polysilicon supply spurs spot prices &highlight s PV market vitalit y
Litt le impact fro m FiT cut s in Europe Indias plan to ban PV components imports suggests it is
enteri ng t he PV market
Competition for polysilicon spurs spot prices, highlights PVmarket vit alityOur channel checks reveal polysilicon strengthened for
small-quantity spot supply but held steady for bulky contract supplyin August, suggesting tense supply and demand near term in thephotovoltaic (PV) market. In August, we also saw the signing oflong-term contracts, which have been absent from the PV marketfor a long while, in a bid to secure supply. This means ordervisibility has extended. We are upbeat about the solar sector.
Figure 1: Reemergence of long-term contracts underpinspositive outlook
Source: KGI Research
Lit tl e impact f rom FiT cut s in EuropeFrance, Italy and Germany have all revised down their solar feed-intarif fs (FiT) since 2010. Assuming PV cost reduction of 5% in 2011,we still estimate the internal rate of return (IRR) will exceed the10-year bond yield based on the new FiT. Considering transparentpolicies in major PV markets and a decent IRR, we foresee limitedimpact from FiT cuts in Europe and even preemptive demand.
PV power is approaching grid parity. Some countries with highelectricity prices should reach grid parity by 2014. HeavyweightFirst Solar (US) targets module-included BOS cost ofUS$1.43-1.61/watt in 2014, which translates into generation costof 0.2 at German PV power stations, comparable to grid power.
Figure 2: IRR still attractive post FiT cuts in Europe IRR, percent
Source: KGI Research
Figure 3: PV pow er nearing g rid parit y
Source:IEK
India plans to ban PV component s import sIt is reported that PV projects under the Indian government subsidyprogram will not be allowed to use imported solar cell modulesfrom March 2011. According to its national solar program, Indiaaims to expand its solar market to 1.0GW by 2013 and 22GW by2022. We see the ban as a reasonable means of protecting thehomegrown solar industry. As Indias PV market totaled 120MW in2009, we foresee limited impact from the embargo. We expectIndias PV market to take off and the country to become the nextbright spot for PV investment.
Conclusion
Indications suggest PV demand is brisk worldwide. With improvingvisibility for 4Q10, we are positive on companies wit h heavyexposure to the PV business such as Haitong (600537.SS) and CSGHolding (000012.SZ).
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IRR in Germany
IRR in Italy
Supplier ClientContract dat e(2010)
Value Delivery
O CI Chemi cal (KOR) Yingli Green (YG E.US) Aug 31 US$442mn 2011-15OCI Chemi cal (KOR) Motech (6244.TW) Aug 20 US$111mn 2011-15
O CI Chemi cal (KO R) G reen En ergy (0 0979.HK) Jul 26 US$223 mn 2011 -15OCI Chemi cal (KOR) Comtec (00712.HK) Aug 2 US$122.4mn 2011-14ReneSolar (US) Neo Solar (3576.TW) Aug 20 434MW 2010-13
Solartech (3561.TW) Aug 21 402MW 2010-13GCL-Poly (03800.HK) Del Solar (TW; unlisted ) Aug 30 664MW 2010-15
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DAILY Navigator China Trader Daily j
IndicesSep-1 A ug-31 A ug -30
SSEA 2,748 2,765 2,779Turnover (Rmb bn) 138 124 120 265 488 939 693 456 21 176 190 176SZSA 1,206 1,222 1,214Turnover (Rmb bn) 140 131 114 221 615 1,026 843 430 18 36 51 52
Top 10 gainersCompanies GainXidang Market (600723) 10.1Anyuan Industrial (600397) 10.4LianHuan Phar.(600513) 10.0Tibet Jinzhu (600773) 10.0
ShanghaiA-share
Chengdu Dept.Store (600828) 10.0
Huludao Zinc Industry (000751) 10.1XiangTan Elec.(002125) 10.0Sansteel MinGuang (002110) 10.0ChenFei Tech.(002190) 10.0
ShenzhenA-share
Kee Ever Bright Tech. (002464) 10.0
Top 10 active Companies Turnover
(Rmb mn)
Rare-Earth Hi-Tech (600111) 2,164Ningbo Yunsheng (600366) 1,451
China Merchants Bank (600036) 1,377Pudong Dev. Bank (600000) 1,271
ShanghaiA-share
Shandong Gold-Mining (600547) 1,262
Zoomlion Heavy Industry (000157) 3,702HaiGe Communications (002465) 1,793XJ Electric (000400) 1,404Huludao Zinc Industry (000751) 1,314
ShenzhenA-share
DMEGC(002056) 1,125
SSEA performanceDaily trading volume, Rmb bn (LHS); SSEA (RHS)
Source: Wise
SZSA perf ormanceDaily trading volume, Rmb bn (LHS); SZSA (RHS)
Source: Wise
Trader Comm ent s
GEM l eading declining t apeSmall-cap stocks lead decliners on Wednesday. The Shanghai A-shares index closed at 2,748,down 0.59% on turnover Rmb137.6bn; meanwhile the Shenzhen A-share index fell 1.31% to1,151 on turnover of Rmb140.2bn. The two cities combined transaction volume was up 10%from the previous trading day.
Quick Bull ets
Southern China's Shenzhen city has drafted new labor rules to smooth industrial relationsin the special economic zone (SEZ), after the manufacturing hub was stung by a series ofworker strikes earlier in the year. (China Securities Journal)
China's banking regulator will strictly implement the central government'smacroeconomic policies that aim to curb soaring housing prices, an official said. (ChinaSecurit ies Journal)
US Commerce Department announced on Tuesday its decision not to initiateinvestigation on allegations that China's currency practices constitute an unfair subsidy.(China Securit ies Journal)
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DAILY Navigator Hong Kong Trader Daily j
Major Indices
Sep-1 Aug-31 Aug-30HSI 20,623 20,536 20,737HS Composit e 2,917 2,896 2,915GEI 756 744 751HS Info Tech 2,154 2,149 2,159
HSMCI 6,582 6,542 6,591HSCCI 4,014 3,990 3,996HSCEI 11,499 11,403 11,532HS-FIN 30,594 30,387 30,818HS-UTIL 41,581 41,582 41,602HS-PPT 26,886 26,958 27,052HS-C&I 11,291 11,249 11,334Turnover ($mn) 56,519 56,889 49,249Advanced 719 398 660Declined 322 668 419Unchanged 190 185 170
Futures
Sep-1 Aug-31 Aug-30HSI (Aug) 20,470 20,317 20,762HSI (Sep) 20,482 20,314 20,671HSCEI (Aug) 11,449 11,315 11,539HSCEI (Sep) 11,470 11,320 11,510
Top Ten Company Code Turnover
(HK$mn)CHINA MOBILE 0941 1,718HSBC HOLDINGS 0005 1,440CHINA LIFE 2628 1,297BANK OF CHINA 3988 976CCB 0939 869HUTCHISON 0013 819ICBC 1398 813LI NING 2331 723CNOOC 0883 630BOC HONG KONG 2388 614
Hang Seng Index chart
Daily Turnover, HK$bn (LHS); HSI (RHS)
Source: Reuters; KGI Asia Limited
Hang Seng H-Share Index chart
Daily Turnover, HK$bn (LHS); HIS (RHS)
Source: Reuters; KGI Asia Limited
Trader Comment s
Shares up as China manuf actu ring fi gures show gainHong Kong stocks advanced, led by shares of Chinese companies after the nation'smanufacturing expanded at a faster pace in August. Among large caps, HSBC (0005.HK)rose 0.85% to HK$76.45, China Mobile (0941.HK) rose 0.06% to HK$79.20 and HKEX(0388.HK) rose 1.14% to HK$123.30. Mainland insurers, China Life (2628.HK) rose 0.67% toHK$29.90. Ping An (2318.HK) was suspended from trading, and CPIC (2601.HK) rose 1.25%to HK$28.30. Property stocks: Cheung Kong (0001.HK) rose 0.15% to HK$98.05, SHK(0016.HK) fell 0.18% to HK$108.80, Hang lung PPT (0101.HK) rose 0.71% to HK$35.00, andHenderson Land (0012.HK) fell 1.89% to HK$46.70. Energy stocks: PetroChina (0857.HK) andSinopec (386.HK) rose 0.59% and 0.48%. CNOOC (0883.HK) fell 0.07% . Hang Seng ChinaEnterprises index rose 96 points, or 0.84% , to 11,498. The benchmark CEI fell 96 pointsdespite the Shanghai market sliding 0.59% in afternoon trading.
Mining stocks: Chalco (2600.HK) rose 0.16% to HK$6.19, VTM Mining (0893.HK) rose 5.53%
to HK$2.86, and Jiangxi Copper (0358.HK) rose 1.65% to HK$17.16. Coal producers: ChinaShenhua (1088.HK) rose 1.23% to HK$28.70, Yanzhou Coal (1171.HK) rose 1.75% toHK$16.24, and China Coal (1898.HK) rose 1.64% to HK$11.14. Mainland lenders: ICBC(1398.HK) rose 0.53% to HK$5.68, CCB (0939.HK) rose 0.31% to HK$6.44 and BOC(3988.HK) fell 0.25% to HK$3.90. Meanwhile, CM Bank (3968.HK) rose 0.24% to HK$20.10,Bocom (3328.HK) rose 0.97% to HK$8.33, and Minsheng Bank (1988.HK) rose 0.14% toHK$7.08. Home appliance stocks: Skyworth Digital (751.HK) rose 4.20% to HK$4.21, TCLMultimedia (1070.HK) rose 2.92% to HK$2.46, and GOME (0493.HK) fell 2.54% to HK$2.30.Telecom equipment stocks: China Wireless (2369.HK) rose 1.55% to HK$3.27, Sim Tech(2000.HK) rose 3.12% to HK$1.65 and Comba (2342.HK) rose 0.87% to HK$8.03.
Quick Bull ets
R&F Properties (2777.HK) announced that i ts contracted sales grew 45% YoY toRmb3.06bn in August with a saleable area of 247,800 sqm. Contracted sales andsaleable area rose 33% and 21% from last mont h. Since the Chinese government' s rollout of a series of curbing policies in April 2010, R&F's contracted sales recorded steadygrowth in the past two months. The results show buyers have regained confidence in themarket and are reconsidering their purchase plans. Zhangzhou, Tianjin and Beijingremain R&Fs three major markets, with aggregate contracted sales income ofRmb18.2bn and saleable area of 1.48mn sqm, up 11% and down 12% from last year.
C C Land (1224.HK) Vice Chairman and Managing Director Peter Lam How-mun said the
company is confident it will achieve its 2010 sales target of Rmb3.4bn. By the third weekof August, contracted sales of C C Land exceeded Rmb3.1bn. Two new projects will alsobe launched in the coming future. Contracted sales to the end of June surged 2.3 timesto Rmb1.82bn. Construction area also expanded 1.9 t imes to 292,200 sqm.
Cheung Kong Infrastructure (1038.HK) Managing Director Kam Hing Lam said thecompany is searching for over 10 potential M&A projects in Europe, North America,Australia and New Zealand. Kam said capital will not be the main concern. The mostimportant thing is to find quality projects which can provide stable returns and strongcash flow for the company.
Lumena (0067.HK) said interim net profi t grew 40.1% to Rmb357mn for the six monthsended 30 June 2010. Basic and diluted EPS were Rmb 18.34 cents and Rmb 18.32 cents.Revenue was Rmb1.02bn, up 72.6% wit h a gross profit of Rmb736mn, up 71.8%. Theinterim dividend will be HK 5.2 cents (2009: nil) per share, payable on or about 30September.
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Code Company FYE Rating Price Target Up/downHK$ bn US$mn (HK$) (HK$) (%) 3m 6m 12m 3m 6m 12m
Auto 00203 Denway Motors Dec Outperform 32 4,077 4.23 4.40 4.0 34.3 (4.5) 17.8 26.9 (2.5) 13.500425 MINTH GROUP Dec Outperform 14 1,733 12.64 13.94 10.3 23 .4 12.5 83.2 16.7 14.8 76.500489 Dongfeng Motor Dec Outperform 36 4,555 12.44 8.20 (34.1) 39.8 8.7 49.7 32.1 11.0 44.201114 Brilliance China Dec Underperform 12 1,557 3.31 0.56 (83.1) 36 .8 61.5 255.9 29.3 64.9 242.901211 BYD Dec Neutral 26 3,292 45.20 12.30 (72.8) (27.3) (28.4) (7.0) (31.3) (26.9) (10.4)01899 Xingda International Dec Outperform 8 1,057 5.95 6.40 7.5 33 .4 62.1 120.4 26.1 65.5 112.302333 Greatwall Motor Dec Outperform 7 891 16.82 12.30 (26.9) 26.5 47.8 151.0 19.6 50.9 141.903808 SINOTRUCK Dec Outperform 21 2,648 7.48 8.10 8.3 26 .1 (9.4) (16.9) 19.2 (7.5) (19.9)
Banking 00636 Fubon Bank (HK) Dec Neutral 1,223 156,732 3.66 3.78 3.3 13 .0 7.0 14.0 6.8 9 .3 9.900939 CCB Dec Neutral 1,505 192,943 6.44 7.89 22.5 3.5 5.4 10.1 (2.1) 7.6 6.101398 ICBC Dec Neutral 472 60,482 5.68 6.56 15.5 0 .4 (1.6) 7.0 (5.1 ) 0 .5 3.103328 Bank of Comm. Dec Neutral 192 24,632 8.33 8.50 2.0 7 .8 1.5 (5.5) 2.0 3.6 (8.9)03968 CMB Dec Neutral 54 6,860 20.10 22.50 11.9 11.7 7.9 26.9 5.6 10.2 22.303988 Bank of China Dec Neutral 990 126,920 3.90 4.15 6.4 1.8 (0.5) 2.1 (3.7) 1.6 (1.6)
Bio-t ech 01066 Weigao Group Dec Neutral 41 5,319 38.55 31.20 (19.1) 30 .0 29.1 82.7 22.9 31.9 76.0Cement 00914 Anhui Conch Dec Neutral 102 13,067 28.85 26.60 (7.8) 15.2 20.7 17.4 8.9 23.2 13.1
01313 Chinares Cement Dec Outperform 25 3,201 3.83 3.75 (2.1) 13.0 8.2 N.A. 6.8 10.5 N.A.Coal 01088 China Shenhua Dec Neutral 571 73,184 28.70 36.00 25.4 (5.6) (15.8) (7.1) (10.8) (14.1) (10.5)
01171 Yanzhou Coal Dec Netural 80 10,240 16.24 17.30 6.5 (5.8) (4.0) 46.8 (10.9) (2.0) 41.5Energy 01205 Citic Resources Holdiings Dec Outperform 10 1,295 1.67 1.80 7.8 17 .6 (20.9) (23.7) 11.2 (19.2) (26.5)
01393 Hedili Industry Dec Outperform 14 1,777 6.73 8.25 22.6 3 .4 (21.0 ) (12.9) (2.3) (19.4) (16.1)Food 00151 Want Want China Dec Outperform 85 10,853 6.41 6.45 0.6 6 .8 24.0 55.6 1.0 26 .6 49.9
00168 Tsingtao Brewery Dec Outperform 56 7,179 41.45 13.22 (68.1) 15.1 9.2 51.6 8.8 11.5 46.000220 U-Presid China Dec Outperform 18 2,289 4.96 5.80 16.9 16 .4 8.1 15.5 10.1 10 .3 11.300322 Tingyi Dec Outperform 111 14,282 19.94 23.00 15.3 15.1 6.4 42.0 8.8 8.6 36.800538 Ajisen (China) Dec Outperform 12 1,555 11.36 6.30 (44.5) 42.0 64.8 117.7 34.2 68.3 109.800904 China Green Apr Outperform 7 860 7.59 8.90 17.3 4 .3 (14.7 ) (5.7) (1.4) (12.9) (9.2)00968 Lit tle Sheep Dec Neutral 5 642 4.87 3.50 (28.1) 15 .4 24.9 36.0 9.1 27.5 31.101068 Yurun Food Dec Outperform 44 5,683 28.95 22.00 (24.0) 37.9 27.5 115.4 30.3 30.2 107.602319 China Mengniu Dec Outperform 33 4,233 23.15 25.60 10.6 1.1 (2.5) 23.5 (4.4) (0.5) 19.003889 Global Sweeteners Dec Outperform 1 182 1.36 1.84 35.3 7 .9 (26.1 ) 0.7 2.0 (24.5) (2.9)
Household App llian 00449 Chigo Dec Outperform 3 364 5.55 9.05 63.2 14.9 11.2 N.A. 8.6 13.6 86.3Industrial 01044 Hengan International Dec Outperform 80 10,227 69.80 49.00 (29.8) 25 .2 30.7 62.1 18.4 33.5 56.2
01868 Neo-Neon Dec Outperform 4 548 4.67 7.20 54.2 14 .2 (22.2) 66.8 7.9 (20.5) 60.701997 Regent Manner Dec Outperform 4 496 3.87 5.72 47.8 16.9 (0.8) 56.7 10.5 1.3 51.003393 Waison Group Dec Outperform 5 674 5.58 7.00 25.4 10.5 0.4 (19.6) 4.5 2.5 (22.5)
Inf rast ructure 0 039 0 China Railway Group Dec Neutral 119 15,320 5.61 5.90 5.2 12.2 (4.9) (17.4) 6.1 (2.9) (20.4)01186 China Railway Cons Dec Neutral 21 2,683 10.08 12.80 27.0 10.9 (1.4) (9.8) 4.8 0.7 (13.1)01800 China Comm. Cons. Dec Neutral 31 3,990 7.03 9.10 29.4 10.4 (4.4) (22.0) 4.3 (2.3) (24.8)
Machinery 00317 Guangzhou Shipyard Dec Outperform 6 791 12.48 16.10 29.0 12.6 (4.0) (20.3) 6.5 (2.0) (23.2)00569 China Automation Dec Outperform 4 557 4.80 6.45 34.4 (4.6) (12.2) 31.9 (9.8) (10.4) 27.10 176 6 China South Loco motive Dec Outperform 13 1,728 6.66 5.48 (17.7) 28 .1 21.5 47.3 21.1 24 .1 42.002338 Weichai Power Dec Outperform 9 1,091 67.30 41.00 (39.1) 20 .6 8.5 92.6 14.0 10.8 85.5
Petrochemica l 00196 Honghua Group Dec Neutral 3 368 0.89 1.10 23.6 (19.8) (26.4) (50.0) (24.2 ) (24 .9) (51.8)00338 Shanghai Petrochemical Dec Outperform 22 2,862 3.10 5.58 80.0 7 .3 10.7 (6.3) 1.4 13.0 (9.8)00839 Tianda Oil Pipeline Dec Outperform 2 289 2.78 6.15 121.2 (2 .5) (30.5) 5.3 (7.8 ) (29 .0) 1.5
Port 02880 Dalian Port Dec Outperform 3 418 3.07 3.20 4.2 4 .4 (10.8) (10.0) (1.3 ) (8 .9) (13.3)03378 Xiamen Port Dec Neutral 1 182 1.44 2.90 101.4 13.4 (6.5) 5.9 7.2 (4.5) 2.003382 Tianjin Port Dev Dec Neutral 3 392 1.71 2.00 17.0 8 .9 (28.2) (43.0) 3.0 (26.6) (45.1)
Power 00902 Huaneng International Dec Neutral 56 7,202 4.66 5.20 11.6 10.7 (1.3) (14.8) 4.6 0.8 (17.9)00991 Datang Power Dec Neutral 10 1,310 3.12 5.36 71.8 1 .0 (14.3) (25.2) (4.5) (12.5) (27.9)01071 Huadian Power Dec Neutral 12 1,563 1.80 2.14 18.9 1 .7 (16.7 ) (27.7) (3.9) (14.9) (30.3)
Property 00410 SOHO China Dec Outperform 27 3,438 5.17 6.52 26.1 27 .7 29.3 26.1 20.7 32.0 21.500688 China Overseas Land & Invest Dec Neutral 132 16,979 16.20 16.76 3.5 10 .7 (1.6) 0.0 4.6 0 .5 (3.6)00755 Shanghai Zendai Dec Neutral 2 287 0.32 0.09 (71.6) 0.0 1.6 16.4 (5.5) 3.7 12.100817 Franshion Property Dec Neutral 19 2,499 2.24 2.61 16.5 (1 .8) (13.2 ) (1.8) (7.1) (11.4) (5.3)0 110 9 China Resources Land Dec Outperform 602 77,169 15.22 19.05 25.1 9.0 (9.1) (8.3) 3.1 (7.2) (11.7)01224 CC Land Dec Neutral 7 875 3.15 5.43 72.4 28 .0 (3.1) (25.7) 21.1 (1.0) (28.4)01813 KWG Property Dec Outperform 14 1,816 5.46 9.53 74.5 26 .4 1.3 14.5 19.5 3.4 10.302868 BJ CAPITALLAND Dec Outperform 5 637 2.45 5.59 128.2 8 .9 (15.2 ) (14.9) 2.9 (13.4) (18.0)
Railway 00525 Guangshen Railway Dec Outperform 19 2,497 2.75 4.40 60.0 3 .4 (13.8 ) (18.2) (2.3) (12.0) (21.1)Retail 00210 PrimeSuccess Int 'l Dec Neutral 14 1,732 8.25 6.25 (24.2) 6 .6 33.9 65.3 0.8 36.7 59.3
00825 Nwds China Jun Underperform 11 1,443 6.75 5.10 (24.4) 4 .8 (3.6 ) 17.0 (0.9) (1.5) 12.700980 Lianhua Dec Outperform 6 815 30.70 11.70 (61.9) 11 .4 28.2 102.8 5.3 30.9 95.400493 Gome Dec Neutral 29 3,762 2.30 1.76 (23.5) 2 .7 (7.3) 3.6 (2.9 ) (5.3) (0.2)01361 361 Degree Dec Outperform 14 1,744 6.80 8.00 17.6 24.5 25.5 110.5 17.7 28.1 102.90 183 3 Intime Depar tment Stor e Dec Outperform 18 2,263 10.08 10.03 (0.5) 48.0 50.2 101.6 39.9 53.4 94.301880 Belle International Dec Outperform 114 14,598 13.50 11.20 (17.0) 35 .0 51.9 98.2 27.6 55.0 91.003308 Golden Eagle Dec Outperform 40 5,091 20.45 16.00 (21.8) 29 .9 43.6 82.6 22.8 46.6 75.903389 Xinyu Hengdeli Dec Neutral 9 1,144 3.59 1.34 (62.7) 10 .1 20.1 73.2 4.1 22.6 66.808277 Wumart Dec Neutral 9 1,091 16.80 5.50 (67.3) 12.0 18.3 37.5 5.9 20.8 32.5
Shipping 01138 China Shipping Dev. Dec neutral 36 4,662 10.68 10.90 2.1 5 .3 (21.2) 9.0 (0.4) (19.6) 5.001919 China COSCO Dec Neutral 21 2,726 8.24 10.20 23.8 (1 .4) (17.3) (12.2) (6.8) (15.5) (15.4)02866 CSCL Dec Outperform 32 4,119 2.75 3.70 34.5 7.0 (15.6) (4.5) 1.2 (13.9) (8.0)
Steel 00347 Angang New Steel Dec Outperform 12 1,562 11.22 21.24 89.3 7.3 (23.6) (23.2) 1.4 (22.0) (26.0)Technology 00757 Solargiga Dec Neutral 3 361 1.56 1.95 25.0 20.9 (10.9) (30.4) 14.3 N.A. N.A.
00877 O-Net Dec Outperform 4 465 4.69 4.83 3.1 51.3 N.A. N.A. 43.0 N.A. N.A.00819 Tianneng Power Dec Neutral 3 399 2.87 3.06 6.5 (31 .2) (20.3) (14.8) (34.9) N.A. N.A.02018 AAC Acoust ic Dec Outperform 17 2,236 14.20 14.25 0.4 32.2 18.7 120.2 25.0 21.2 112.102342 COMBA Dec Outperform 10 1,219 8.03 11.69 45.6 (10 .0) 3.4 84.7 (14.9) 5.6 77.903888 Kingsoft Corp Dec Neutral 4 534 3.75 4.86 29.6 (16 .3) (43.2) (56.6) (20.9) (42 .0) (58.2)
Textile / Apparel 01382 Pacif ic Textiles MarUnderperform 6 720 3.92 2.20 (43.9) (7 .1) (24.0) 63.5 (12.2) (22.4) 57.600321 Texwinca Holdings Mar Outperform 10 1,337 7.86 6.80 (13.5) 2.1 7.1 29.3 (3.5) 9.3 24.6
Tollroad 00107 Sichuan Expressway Dec Outperform 5 613 5.34 2.75 (48.5) 32 .8 17.1 64.8 25.6 19.6 58.800177 Jiangsu Expressway Dec Neutral 9 1,216 7.76 5.30 (31.7) 10 .7 4.6 26.4 4.7 6 .8 21.800548 Shenzhen Expressway Dec Neutral 3 357 3.73 3.40 (8.8) 8.1 (8.1) (5.8) 2.2 (6.2) (9.2)0 057 6 Zhejiang Expressway Dec Neutral 10 1,259 6.85 6.25 (8.8) (5 .5) (2.8) (8.5) (10.7 ) (0.8) (11.9)00737 Hopewell Infra Jun Neutral 17 2,228 5.85 4.85 (17.1) 13 .6 14.3 25.0 7.4 16.7 20.400995 Anhui Expressway Dec Neutral 2 319 5.05 3.70 (26.7) 11.2 (2.5) 16.6 5.2 (0.5) 12.4
Relat ive per formance (%)Absolut e perfo rmance (%)Mkt cap
DAILY Navigator Hong Kong Statistics k
Valuation t able
Source: Company data; KGI Asia Limited estimates
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Code Company2008 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010
Auto 00203 Denway Motors 0.41 0.44 0.48 5.2 9.9 9.7 8.8 2.0 1.8 (1781 .5 ) (1635 .0 ) 4.8 5.2 22.1 21.500425 MINTH GROUP 0.51 0.74 0.83 46.3 11.3 19.4 17.5 3.2 3.0 19.6 13.2 0.8 1.7 17.5 18.10 048 9 Dongf eng Mo tor 0.54 0.68 0.81 27.1 18.6 18.3 15.4 3.5 2.9 9.0 4.2 N.A. N.A. 21.5 20.601114 Brilliance China (0.01) (0.02) (0.02) N.A. N.A. (190.4) (217 .9) 1.8 1.8 81.7 108.1 N.A. N.A. N.A. N.A.01211 BYD 0.77 0.74 1.09 (4.8) 48.6 61.5 41.4 5.6 5.0 7.7 5.2 2.5 2.8 9.4 12.701899 Xingda International 0.34 0.45 0.70 30.9 55.8 13.2 8.5 1.4 1.1 7.2 4.8 N.A. N.A. 55.6 69.9
02333 Greatwall Motor 1.15 1.54 2.10 33.3 36.6 10.9 8.0 1.8 1.5 0.9 (0.3) 1.7 1.9 17.9 20.40 380 8 SINO TRUCK 0.46 0.56 0.80 21.8 42.9 13.3 9.3 0.9 0.9 4.5 3.0 0.9 0.9 7.3 9.7
Banking 00636 Fubon Bank (HK) 0.05 (0.02) 0.23 (132 .7) (1479 .3 ) (223.8 ) 16.2 1.1 1.0 N.A. N.A. 0.8 3.7 0.5 6.000939 CCB 0.46 0.53 0.70 15.0 32.4 12.2 9.3 2.4 2.0 N.A. N.A. 3.6 5.4 20.8 0.001398 ICBC 0.38 0.45 0.53 0.2 0.2 12.7 10.8 2.5 2.1 N.A. N.A. 3.4 4.7 0.2 0.203328 Bank of Comm. 0.69 0.79 0.91 15.7 14.8 10.5 9.1 1.9 1.6 N.A. N.A. 2.2 2.2 19.8 19.303968 CMB 1.84 2.23 2.44 20.9 9.7 9.0 8.2 2.4 2.0 N.A. N.A. 1.1 0.8 29.7 26.40 398 8 Bank of Chi na 0.29 0.36 0.43 27.7 19.1 10.7 9.0 1.7 1.6 N.A. N.A. 4.1 5.8 17.5 19.3
Bio-tech 01066 Weigao Group 0.55 0.67 0.92 21.6 36.3 57.3 42.0 12.3 9.8 71.6 51.0 0.3 0.5 23.4 26.1Cement 00914 Anhui Conch 1.69 2.27 1.56 34.5 (31.2) 12.7 18.5 1.6 2.6 20.7 10.4 N.A. 1.2 13.3 15.3
01313 Chinares Cement 0.97 0.40 0.25 (58.5) (37.1) 9.5 15.1 2.0 1.8 18.4 11.4 0.2 0.5 12.2 12.7Coal 01088 China Shenhua 1.53 1.82 2.10 18.8 15.2 15.8 13.7 2.9 2.5 8.7 7.6 1.8 2.0 20.4 19.8
0 117 1 Yanzhou Coal 1.51 0.96 1.60 (36.5) 67.1 17.0 10.2 2.4 2.0 11.3 6.4 3.0 3.5 14.7 21.4Energy 01205 Cit ic Resources Ho ld iings 0.06 0.03 0.12 (46.0) 275.7 51.0 13.6 1.2 1.1 15.4 7.8 N.A. N.A. 2.4 8.5
01393 Hedi li Indust ry 0.49 0.14 0.35 (7 1.3) 15 0.5 48.1 19.2 2.2 2.0 32.6 16.3 1.2 1.2 6.7 11.0Food 00151 Want Want China 0.16 0.18 0.24 18.3 30.3 35.7 27.4 11.3 10.0 29.3 22.2 2.5 2.8 32.6 38.6
00168 Tsing tao Brewery 0.61 1.06 1.32 N.A. 24.2 39.1 31.5 6.0 5.2 29.3 15.2 0.6 0.6 17.5 17.600220 U-Presid Ch ina 0.11 0.26 0.30 N.A. 15.6 19.2 16.6 2.5 2.4 10.5 8.7 2.6 3.0 13.7 14.700322 Tingyi 0.36 0.53 0.65 46.2 22.7 36.2 29.5 9.9 8.5 16.1 13.1 1.4 1.7 29.2 30.800538 Aji sen (China) 0.21 0.26 0.35 27.9 32.2 42.9 32.5 5.1 4.6 23.8 17.8 0.6 0.9 12.3 14.800904 China Green 0.59 0.71 0.83 N.A. 16.9 10.7 9.2 2.0 1.7 6.6 5.4 2.3 2.7 19.6 19.8
00968 Litt le Sheep 0.15 0.14 0.18 N.A. 24.8 34.3 27.5 4.4 4.0 19.8 15.1 1.5 1.8 13.1 15.30 106 8 Yuru n Food 0.74 0.96 1.11 29.2 15.5 30.1 26.1 7.6 6.3 30.1 22.0 0.9 1.0 26.5 26.302319 China Mengniu (0.73) 0.94 1.07 N.A. 14.2 24.7 21 .6 4.1 3.6 10.3 8.1 0.8 0.9 20.5 17.603889 Global Sweeteners 0.15 0.13 0.24 (13.5) 87.7 16.6 7.5 0.9 0.8 8.3 5.0 N.A. N.A. 5.4 11.1
Household Applianc00449 Chigo 0.25 0.77 1.00 203.1 29.4 8.2 6.3 1.5 1.3 11.9 (15.6) 2.0 3.2 19.5 21.9Industrial 01044 Hengan International 1.17 1.78 2.11 51.6 18.7 39.3 33.1 11.8 10.5 28.7 22.7 1.6 2.0 30.7 33.5
0 186 8 Neo-N eon 0.21 0.19 0.24 (8.6) 22.9 24.1 19.6 1.2 1.3 15.7 11.7 0.5 0.7 5.5 6.60 199 7 Regent M anner 0.29 0.43 0.57 49.9 33.8 1.1 0.8 6.9 5.2 N.A. N.A. 30.0 42.5 14.8 17.90 339 3 Wai son Gr oup 0.33 0.34 0.37 N.A. 10.1 16.7 15.1 2.1 1.9 21.5 20.9 1.5 2.3 14.8 13.4
Infrastructure 00390 China Railway Group 0.07 0.31 0.40 330.7 28.7 18.0 14.0 1.7 1.5 9.1 7.8 1.1 1.4 9.9 11.501186 China Railway Cons 0.37 0.51 0.62 37.3 22.6 19.8 16.2 2.1 1.9 (1.1) (0.7) 1.7 2.0 11.0 12.401800 China Comm. Cons. 0.47 0.62 0.84 31.6 36.4 11.4 8.4 1.9 1.6 3.0 2.2 1.3 1.8 18.0 20.7
Machinery 00317 Guangzhou Shipyard 1.90 1.19 1.44 (37.2) 20.9 10.5 8.7 1.7 1.5 2.7 1.1 4.6 2.7 17.4 18.500569 China Automat ion 0.19 0.25 0.31 42.3 22.9 19.2 15.6 2.5 2.1 12.0 9.5 1.0 1.2 19.4 18.901766 China South Locomotive 0.18 0.17 0.24 (3.4) 40.0 38.3 27.4 3.9 3.4 2.9 2.1 0.5 N.A. 10.6 13.202338 Weichai Power 2.65 3.30 3.83 24.9 15.8 20.4 17.6 4.7 3.7 1.4 0.5 0.5 0.5 26.2 23.7
Petr ochemi ca l 0 019 6 Hongh ua Gr oup 0.23 (0.05) 0.10 N.A. N.A. (19.7 ) 9.1 0.6 0.6 N.A. N.A. 11.5 N.A. N.A. 6.600338 Shangha i Petrochemical (0.99) 0.25 0.62 N.A. 143.8 12.3 5 .0 1.3 1.1 15.3 4.2 3.3 1.1 11.2 23.300839 Tianda Oil Pipeline 0.45 0.30 0.52 (34.2) 73.8 9.3 5.4 1.3 1.0 10.1 3.1 2.1 2.1 14.2 21.4
Port 02880 Dalian Port 0.30 0.25 0.28 (17.3) 11.5 12.2 10.9 1.2 1.1 4.6 3.9 3.4 3.4 9.8 10.30 337 8 Xi amen Por t 0.17 0.18 0.20 4.8 9.0 8.0 7.4 0.8 0.8 0.7 0.3 7.1 7.9 10.8 11.203382 Tianj in Por t Dev 0.07 0.08 0.10 3.2 36.7 22.6 16.6 0.8 0.8 10.8 9.2 2.7 2.8 3.7 4.9
Power 00902 Huaneng International (0.37) 0.47 0.43 N.A. (7.4) 10.0 10.8 1.2 1.1 18.5 8.4 N.A. 2.5 12.5 10.70 099 1 Dat ang Pow er 0.73 0.91 0.00 24.7 N.A. 3.4 N.A. 0.4 0.4 3.0 N.A. N.A. N.A. 13.8 0.001071 Huadian Power (0.49) 0.20 0.03 N.A. (83.5) 9.2 55.8 0.7 0.7 9.4 11.9 16.6 N.A. 8.4 1.2
Property 00410 SOHO China 0.09 0.73 0.68 732.0 (6.2) 7.1 7.6 1.4 1.2 6.8 3.0 4.4 5.5 21.1 17.000688 China Overseas Land & Invest 0.65 0.92 1.26 41.4 37.3 17.7 12.9 3.1 2.6 12.0 8.6 1.2 1.6 17.7 20.400755 Shangha i Zendai 0.09 0.03 0.00 (61.3) (86.6 ) 9.6 71 .8 1.0 1.0 9.9 35.4 N.A. N.A. 11.4 1.400817 Franshion Property 0.17 0.12 0.05 (2 7.8) (5 6.9 ) 18.4 42.8 1.2 1.2 6.7 9.3 0.9 1.0 7.4 2.801109 China Resources Land 0.46 0.90 1.22 96.7 35.0 16.9 12.5 2.0 1.7 128.4 79.4 1.6 1.6 13.0 14.801224 CC Land 0.13 0.13 0.77 (3.1) 511.9 25.1 4.1 0.7 0.6 572.7 7.8 0.8 4.9 2.7 15.001813 KWG Property 0.17 0.47 0.75 177.1 60.0 11.6 7.2 1.3 1.1 8.0 5.1 2.6 4.0 11.9 16.902868 BJ CAPITAL LAND 0.22 0.41 0.73 90.3 77.4 6.0 3.4 0.9 0.8 4.7 2.1 7.1 12.6 16.1 24.4
Railway 0 054 8 Shenzhen Expressway 0.26 0.25 0.23 (5.8) (8.3) 15.1 16.4 1.0 1.0 13.2 11.3 3.7 3.4 6.6 5.9Retail 00210 Prime Success Int'l 0.30 0.36 0.47 20.5 29.8 22.6 17.4 5.7 4.5 13.0 10.4 0.9 1.4 28.3 28.8
00825 Nwds China 0.29 0.30 0.34 2.1 13.7 22.4 19.7 2.6 2.4 11.2 8.5 1.3 2.2 11.9 12.60 098 0 Lianhua 0.71 0.78 0.90 9.5 15.4 39.3 34.0 6.1 5.4 (0.8) (1.0) 1.0 1.2 16.2 16.800493 Gome 0.09 0.10 0.11 (26.1) 12.4 23.2 20.6 2.9 2.6 10.6 7.0 1.4 1.6 14.7 15.10 136 1 3 61 Degree N.A. 0.48 0.51 -- 6.6 14.2 13.3 4.7 3.5 13.8 8.8 N.A. 3.4 44.7 30.301833 Intime Department Store 0.24 0.30 0.33 25.8 10.8 33.4 30.1 4.5 4.1 34.0 24.6 1.5 1.3 13.8 14.301880 Belle International 0.24 0.30 0.37 26.1 21.7 44.9 36.9 7.4 6.4 32.9 27.5 0.6 0.6 17.6 18.60 330 8 Go lden Eagl e 0.39 0.27 0.57 (3 1.8) 11 4.9 77.1 35.9 17.0 11.9 33.8 27.7 0.2 0.2 22.7 39.003389 Xinyu Hengdeli 0.21 0.19 0.24 (10.2) 25.0 18.8 15.0 3.3 2.8 11.9 10.1 1.6 2.0 18.5 20.10 827 7 Wulm art 0.46 0.39 0.47 (15.2) 19.6 43.1 36.0 6.7 5.9 8.7 6.5 N.A. N.A. 16.3 17.5
Shipping 0 113 8 China Shipping Dev. 1.80 0.36 0.65 (80.2) 83.2 29.9 16.3 1.5 1.5 14.8 9.1 5.4 1.1 5.0 9.101919 China COSCO 1.30 (0.44) 0.20 N.A. N.A. (18.8 ) 41.9 1.5 1.5 (15.6) 5.0 N.A. N.A. N.A. 3.602866 CSCL 0.00 (0.63) 0.10 N.A. N.A. (4.4 ) 27.3 1.1 1.1 (7.7) 13.0 N.A. 0.4 N.A. 4.0
Steel 00347 Angang New Steel 2.02 2.31 0.00 14.1 N.A. 4.9 N.A. 1.0 1.0 0.5 N.A. 3.1 N.A. 22.9 0.0Technology 0 075 7 Solargiga 0.06 (0.07) 0.06 N.A. N.A. (22.6) 27.5 1.6 1.6 (21.7 ) 23.9 1.1 1.1 N.A. 5.9
0087 7 O-Net N.A. N.A. 0.23 -- -- N.A. 20.5 N.A. 3.8 36.4 15.6 N.A. 0.0 N.A. N.A.00819 Tianneng Power 0.27 0.30 0.22 13.7 (29.2) 9.4 13.3 1.5 1.5 7.7 10.4 3.1 2.3 18.4 11.40 201 8 AA C A cous ti c 0.58 0.57 0.96 (1.1) 67.2 24.8 14.8 4.1 3.4 20.9 12.2 1.5 2.1 18.0 24.902342 COMBA 0.22 0.54 0.66 145.3 21.7 14.8 12.2 3.2 3.0 11.0 7.8 2.2 2.5 21.8 24.303888 Kingsoft Corp 0.33 0.42 0.42 25.7 0.3 9.0 9.0 2.2 1.9 5.7 5.0 4.0 3.8 26.4 22.5
Texti le/ Apparel 01382 Pacific Textiles 0.28 0.26 0.28 (7.0) 6.0 14.9 14.1 1.8 1.6 7.3 6.5 3.8 3.6 12.7 12.100321 Texwinca Holdings 0.70 0.65 0.69 (7.1) 6.7 12.1 11.4 2.5 2.3 8.2 6.9 5.1 5.3 21.6 21.0
Tollroad 0 010 7 Sichua n Expressway 0.24 0.23 0.25 (4.8) 7.7 23.1 21.4 2.0 1.9 4.8 4.1 1.7 1.9 8.7 8.900177 Jiangsu Expressway 0.36 0.31 0.39 (13.1) 25.5 24.7 19.7 2.3 2.3 5.1 4.2 3.8 4.1 9.5 11.700548 Shenzhen Expressway 0.26 0.25 0.23 (5.8) (8.3) 15.1 16.4 1.0 1.0 13.2 11.3 3.7 3.4 6.6 5.900576 Zhejiang Expressway 0.50 0.44 0.54 (12.3) 23.8 15.7 12.7 1.9 1.8 1.4 0.8 5.2 5.2 12.0 14.300737 Hopewell Infra 0.67 0.40 0.37 (40.0) (7.0) 14.5 15.6 1.6 2.0 11.3 11.3 19.5 4.8 10.6 11.300995 Anhui Expressway 0.52 0.49 0.49 (4.3) (1.0) 10.2 10.3 1.2 1.1 3.1 2.5 4.5 4.5 12.1 11.2
EV/EBITDA (x) YIELD (%) ROAE (%)EPS (HK$/shr) EPS growt h (%) P/E (x) P/B (x)
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