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Growth data stabilizing, policy tempo to sloGrowth data stabilizing, policy tempo to sloYoupon Ceiling Yutong Bus Wuliangye Yibin AVIC ElectromechanicalInflationaryHongda Xingye Yinlun Machinery Global Safety Technology StarNeto Technology expectations11
China A-Share Market Weekly
2017
Market StrategyPolicy time window and opportunities
16 Oct 2017
Ple
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Stock RecommendationsCM Shekou Redsun CIMC Vanke
MacroeconomicsCause for faster-than-expected credit growth remains unchanged
csb.com.hk
CITIC Securities Brokerage (HK) LimitedInvestment Advisory ServicesTel:2237 9250E-mail:[email protected]
CompanyPrice
(Rmb)Target (Rmb)
Stop Loss (Rmb)
Upside (%)
CM Shekou (001979 CH)
18.29 28.20 17.4 54
Redsun(000525 CH)
22.00 30.00 20.9 36
CIMC (000039 CH)
18.95 24.30 18.0 28
Vanke (000002 CH)
26.93 32.36 25.6 20
CM Shekou
2 16 Oct 2017
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Contents:
Source: Respective Company, CS
Cause for faster-than-expected credit growth remains
unchanged
Policy time window and opportunities
New loans tallied Rmb1.27trn in Sep
2017, higher than consensus. M2 growth
rebounded to 9.2%. We forecast M2 to
remain slow growth in the near future.
The 19th Party Congress is unlikely to alter the
positive trend for A-shares in the medium-
term. Thematic opportunities may mushroom
post Congress.
Market Strategy
Macroeconomics
Weekly Top Pick
3 16 Oct 2017
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Market strategy:
Source: CS
Policy time window and opportunities
We b e l i e v e t h e 19 t h C P C
National Congress will not
alter the positive direction for the
A-share market over the medium-
term. The overall policy direction
should remain intact after the twice-
a - decade gather ing , a l though
various types of reform measures
may be expedited, creating thematic
opportunities in the A-share bourses.
We adv ise inves tors to look for
opportunities from the two major
dimensions: (i) laggards in terms of
reform; and (ii) sectors catching-up
to satisfy targets set in the 13th Five-
Year Plan. The former entails SOE
mixed-ownership reform and natural
gas market reform, while the latter
includes accelerating R&D spending
and opportunities in environmental
protection.
4 16 Oct 2017
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MaCroeConoMiCs:
Source: CS
Cause for faster-than-expected credit growth remains unchanged
China’s new loans came in at
Rmb1.27trn for Sep 2017. Loan
growth surpassed consensus, while
mortgage and corporate lending
continued to be strong. Despite a
surprise rebound in off-balance sheet
financing within total social financing,
the tapering of credit expansion
has been established. M2 growth
accelerated moderately, from 8.9% in
Aug to 9.2% in Sep 2017. Regulatory
pressure for f inancial deleverage
was unchanged. The contraction of
credits exerted impact on monetary
expansion. We foresee M2 growth
remain subdued in the short term.
Source: Bloomberg, CS
CITIC S&P 50
(Index)
(Index)
5 16 Oct 2017
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Market review & teChiniCal:
2,9402,9703,0003,0303,0603,0903,1203,1503,1803,2103,2403,2703,3003,3303,3603,3903,4203,450
25/5
/17
1/6/
176/
6/17
9/6/
1714
/6/1
719
/6/1
722
/6/1
727
/6/1
730
/6/1
75/
7/17
10/7
/17
13/7
/17
18/7
/17
21/7
/17
26/7
/17
31/7
/17
3/8/
178/
8/17
11/8
/17
16/8
/17
21/8
/17
24/8
/17
29/8
/17
1/9/
176/
9/17
11/9
/17
14/9
/17
19/9
/17
22/9
/17
27/9
/17
9/10
/17
12/1
0/17
Market Review: On Monday, the
Shanghai Composite Index (SCI) opened
high and climbed further during the
morning, retreated and consolidated
in the afternoon to end up 0.3%. On
Tuesday, both Shanghai and Shenzhen
markets started high. The SCI rose above
the 3,400 mark int ra -day. Bank ing
heavyweights surged and pulled back
later, causing the ascend to narrow after
lunch. The Shanghai gauge collected
0.8% at f inish. On Wednesday, the
two bourses opened low in tandem
and hovered at low levels. A market
rally then took place with f inancials
in the lead, pushing the SCI back into
the positive with a 0.3% gain at close.
On Thursday, the two markets again
opened low but climbed back to the
positive, this time fueled by liquor plays.
Stock indices moved within narrow
bands subsequently and the SCI edged
up 0.2%. On Fr iday, the Shanghai
benchmark index opened slightly low
and stayed basically flat, edging up 0.1%.
In the week, CITIC/S&P 50 and CITIC/
S&P 300 advanced 3.1% and 2.3%,
respectively.
Technical analysis: The RSI of CITIC/
S&P 50 and CITIC/S&P 300 is overbought
now, forecasting consolidation and
correction in the near future. We expect
to see support at their 50-day moving
averages of 2,975 and 3,227 points,
respectively.
2,6802,7202,7602,8002,8402,8802,9202,9603,0003,0403,0803,1203,1603,200
25/5
/17
1/6/
176/
6/17
9/6/
1714
/6/1
719
/6/1
722
/6/1
727
/6/1
730
/6/1
75/
7/17
10/7
/17
13/7
/17
18/7
/17
21/7
/17
26/7
/17
31/7
/17
3/8/
178/
8/17
11/8
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16/8
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21/8
/17
24/8
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29/8
/17
1/9/
176/
9/17
11/9
/17
14/9
/17
19/9
/17
22/9
/17
27/9
/17
9/10
/17
12/1
0/17
Index 3,423.07
52-wk high/low 3,414.21/2,807.89
50/100/200D MA 3,227.2/3,113.4/3,073.1
RSI (14D) 75.4
MACD (12/26D)/Signal 25.13/20.45
Index 3,158.75
52-wk high/low 3,156.88/2,406.24
50/100/200D MA 2,975.1/2,831.3/2,695.2
RSI (14D) 76.3
MACD (12/26D)/Signal 26.00/18.17
CITIC S&P 300
6 16 Oct 2017
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stoCk reCoMMendations:
CM Sh e ko u I n d u s t r i a l Zo n e
( 0 019 7 9 C H ) r e a l i z e d
p ro p e r t y s a l e s vo lu m e o f 574,10 0
sqms (+42% YoY), with revenue hitting
Rmb9,453mn (+52% YoY) in Sep 2017. We
forecast its full -year 2017E sales to top
Rmb100bn. Having actively acquired land
slots in Sep 2017, the Company’s inventory
value should keep rising. A strategic
cooperation agreement was recently
signed with the Shanghai Municipal
Government, paving the way for more
business opportunities in the metropolis.
CM Shekou Target Price: Rmb28.2 Upside: 54%
Expanding land bank
(A Shenzhen-HK Stock Connect Northbound Stock)
Source: Bloomberg, Respective Company, CS * Closing prices as of 13 Oct 2017
Risk Rating: 1 to 5 in ascending order
Share Price Performance
17.618.018.418.819.219.620.020.420.8
23/8
/17
25/8
/17
29/8
/17
31/8
/17
4/9/
176/
9/17
8/9/
1712
/9/1
714
/9/1
718
/9/1
720
/9/1
722
/9/1
726
/9/1
728
/9/1
79/
10/1
711
/10/
1713
/10/
17
(Share price/Rmb)
Price/Target/Stop Loss 18.29/28.20/17.40
52 Weeks High/Low 22.08/15.95
50/100/200D MA 19.11/19.77/18.71
RSI (14D) 39.1
MACD (12/26D)/Signal -0.30/-0.21
2017E PER (x) 11.6
Company: CM Shekou is engaged in integrated development of industrial parks. The Company conducts land and real estate development and management, science and technology venture capital and fund management.
7 16 Oct 2017
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stoCk reCoMMendations:
CIMC
Target Price: Rmb24.3 Upside: 28%Expanding land bank
CI M C ( 0 0 0 0 3 9 C H ) s i g n e d a
f r a m e w o r k a g r e e m e n t f o r
consolidating and developing the Qianhai
land slot. According to which, the plot will
be converted for commercial development
and the Company will be entitled to 40%
of the appreciation gains, estimated at
Rmb10bn plus. The remarkable recovery
of the container business has laid a
solid foundation for earnings growth in
2017E. Meanwhi le,
t h e co n v e r s i o n o f
land for commercial
d e v e l o p m e n t i n
Qianhai, Taizi Bay and
Baoshan is projected
to post a revaluation
g a i n o f R m b2 0 b n
and boost its balance
sheet.
Red Sun (000525 CH) pre-announced
3Q17E results, guiding net profit of
Rmb510mn-Rmb550mn (+1,212%-1,315%
YoY) for 3Q17E. The earnings surge
was chief ly attributable to recovering
pesticide demand, improving competitive
landscape and hik ing pr ices of the
Company’s main products. We remain
sanguine about the Company’s business
port folio centering around the agro-
chemical eco-system and 10 specif ic
segment s . L- phosphinothr ic in may
become a new driver for
profit going forward. In
addition, leading agro-
chemical producers stand
to benef it from the exit
o f po l lu t ing pes t ic ide
capacity under significant
p o l i c y p r e s s u r e f o r
environmental protection.
Red SunTarget Price: Rmb30 Upside: 36%
Enjoying bonus for leading pesticide producers
(A Shenzhen-HK Stock Connect Northbound Stock)
Share Price Performance
17.417.617.818.018.218.418.618.819.019.219.419.619.8
23/8
/17
25/8
/17
29/8
/17
31/8
/17
4/9/
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9/17
8/9/
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714
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718
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722
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726
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728
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711
/10/
1713
/10/
17
(Share price/Rmb)
Price/Target/Stop Loss 18.95/24.30/18.00
52 Weeks High/Low 19.45/13.86
50/100/200D MA 18.66/17.93/16.97
RSI (14D) 59.2
MACD (12/26D)/Signal 0.04/-0.05
2017E PER (x) 20.8
Company: CIMC designs and builds containers, a i rpor t faci l i t ies , internal combust ion power-generating equipment and trailers. It also runs timber and property businesses.
Source: Bloomberg, Respective Company, CS * Closing prices as of 13 Oct 2017
Risk Rating: 1 to 5 in ascending order
(A Shenzhen-HK Stock Connect Northbound Stock)
Share Price Performance
20.0
20.5
21.0
21.5
22.0
22.5
23.0
23.5
23/8
/17
25/8
/17
29/8
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31/8
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4/9/
176/
9/17
8/9/
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714
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718
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722
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726
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10/1
711
/10/
1713
/10/
17
(Share price/Rmb)
Price/Target/Stop Loss 22.0/30.0/20.9
52 Weeks High/Low 22.66/15.68
50/100/200D MA 21.20/19.43/19.30
RSI (14D) 56.3
MACD (12/26D)/Signal 0.25/0.21
2017E PER (x) 18.0
Company: Red Sun Company manufactures and sel ls agricultural pest icides, coat ings and f ine chemicals.
8 16 Oct 2017
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stoCk reCoMMendations:
Vanke (000002 CH) regis tered
revenue of Rmb46.32bn in Sep
2017 (+83% YoY). Looking ahead, we see
limited growth in Oct 2017E due to a high
comparison base and less new projects
for sales. However, sales growth may
pick up again after Nov 2017E. Although
management appeared somewhat
conservative in the last up-cycle, we
see the Company correct ly focusing
on steadily honing its ability for project
development, as its core competitive edge
l ies in achieving growth
through leverage rather
than betting aggressively
on industry cycles. While
resource i s va luable, as
a leading developer, the
Company’s value is better
represented by constant
replenishment of land bank
with quality pieces.
VankeTarget Price: Rmb32.36 Upside: 20%
Opting for sustainable growth
(A Shenzhen-HK Stock Connect Northbound Stock)
Source: Bloomberg, Respective Company, CS * Closing prices as of 13 Oct 2017
Risk Rating: 1 to 5 in ascending order
Share Price Performance
22232425262728293031
23/8
/17
25/8
/17
29/8
/17
31/8
/17
4/9/
176/
9/17
8/9/
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714
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718
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720
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722
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726
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728
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10/1
711
/10/
1713
/10/
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(Share price/Rmb)
Price/Target/Stop Loss 26.93/32.36/25.60
52 Weeks High/Low 29.30/18.47
50/100/200D MA 24.65/23.64/22.12
RSI (14D) 55.9
MACD (12/26D)/Signal 0.54/0.72
2017E PER (x) 11.0
Company : Vanke is a proper t y development company. The Company develops resident ia l properties in Shenzhen, Shanghai, Beijing, Tianjin, Shenyang, Nanjing, and other big cities in China.
9 16 Oct 2017
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China/HK Stock(55%)
US Stock(5%)Euro Stock
(5%)Japan Stock
(5%)
Global ETF(15%)
Cash(15%)
Recommended global asset allocation (GAA)
Global Asset Allocation
Source: Bloomberg, Respective Company, CS
Hong Kong: Relatively undemanding stock valuation; potential benefit of “Shenzhen-Hong Kong Stock Connect” to small caps
Mainland China: Government preference for a “slow bull market”; relaxed fiscal policy in favor of equities
Japan: Real estates, exports and tourism enjoying monetary easing and weak yen
US: Macro stability and recovery; short-term pressure stemming from rate rise and strong USD
Europe: Stock valuation falling due to weak euro and further quantitative ease
The Philippines: Positive current account balance for over a decade; projected GDP growth of 6.8% in 2016E
India: Relatively strong growth versus other emerging markets; projected GDP growth of 8% in 2016E
Selected equity markets at a glance
10 16 Oct 2017
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China/Hong Kong StocksCompany Remarks
Realcan Pharm (002589 CH) Medical equipment distribution across the nation
Wellhope Agri-Tech (603609 CH) Wider margins in animal feed and upbeat growth in slaughter and trade
Dabeinong (002385 CH) Warming industry climate and growth-driving strategy
Huace Film & TV (300133 CH) Continued progress in SIP operations and promising VR content investment
Alpha Animation (002292 CH) Entering the baby/toddler market upon acquisition of BT and Jinwang
Kweichow Moutai (600519 CH) Steady and superb
CR Land (1109 HK) Benefiting from rate/RRR cuts + projects in top-tier cities
Fortune REIT (778 HK) High-quality assets + Potential Asset Injection + dividend yield of 5%-plus
Link REIT (823 HK) Asset enhancement initiative + buyback expectations
Haitong Sec. (6837 HK) Gaining from IPO re-launch and rebounding A-share market turnover
Eastern Airlines (670 HK) To ride on Shanghai Disney and Beijing Winter Olympics
Tencent (700 HK) 2016Q1: Games could surprise
CAR Inc. (699 HK) Potential regulation on taxi industry + low market penetration
Pax Global (327 HK) Strong overseas sales
Japan StocksCompany Remarks
Mizhuho (8411 JP) Expanding overseas portfolio remains the key driver
Nissan Motor (7201 JP) Robust sales, favorable currency, further cost cutting
Sony (6758 JP) Growth story continues...
US StocksCompany Remarks
Facebook (FB US) Strong products
Starbucks (SBUX US) Still brisk growth
Alphabet (GOOG US) Positive data on page view
Euro StocksCompany Remarks
Adidas (ADS GY) Upbeat industry climate
Zurich Insurance (ZURN VX) High dividend yield
LVMH (MC FP) Gain from weak €
Global ETF / ETNName Remarks
Tracker Fund of HK (2800 HK) To track the performance of the Hang Seng Index
CSOP Hang Seng Index Daily (2x) Leveraged Product (7200 HK) To track the daily performance of Hang Seng Index (2x leverage)
CSOP Hang Seng H-Shares Index Daily (2x) Leveraged Product (7288 HK) To track the daily performance of Hang Seng H-Shares Index (2x leverage)
CSOP Hang Seng Index Daily (-1x) Inverse Product (7300 HK) To track the daily performance of Hang Seng Index (inverse 1x leverage)
CSOP Hang Seng H-Shares Index Daily (-1x) Inverse Product (7388 HK) To track the daily performance of Hang Seng H-Shares Index (inverse 1x leverage)
ChinaAMC Hang Seng SmallCap Index (3157 HK) To track the performance of the Hang Seng SmallCap Index
ChinaAMC CSI 300 Index (3188 HK) To track the performance of the CSI 300 Index
Powershares QQQ Trust Series 1 (QQQ US) To track the performance of the Nasdap 100 Index (Excluded Financial Sector)
PowerShares DB Commodity Index Tracking ETF (DBC US) To track the performance of the DBIQ Optimum Yield Diversified Commodity Index
XIE Shares FTSE Chimerica (3161 HK) To track the performance of the FTSE China N Shares All Cap Capped Net Tax Index
Deutsche X-Trackers MSCI Eur (DBEU US) To track the performance of the MSCI Europe USD Hedged Index
Deutsche X-Trackers MSCI Jap (DBJP US) To track the performance of the MSCI Japan US Dollar Hedged Net Index
iShares MSCI Philippines (EPHE US) To track the performance of the MSCI Philippines Investable Market Index
iShares MSCI India (INDA US) To track the performance of the MSCI India Index
SPDR Gold ETF (2840 HK) To track the performance of the price of gold bullion in COMEX
Value Gold ETF (3081 HK) To track the performance of the London Gold Morning Fixing Price
CSOP WTI OIL ETF (3135 HK) To track the performance of the Merrill Lynch Commodity index eXtra CLA Index ER
Source: Bloomberg, Respective Company, CS
Top GAA picks
11 16 Oct 2017
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a-share reCoMMended stoCks:
Defensive StockSMkt Cap PriceU Target Stop Loss Upside Risk
Company Business (Rmb bn) (Rmb) (Rmb) (Rmb) (%) rating Remarks
Bank of Beijing (601169 CH)^
Banks 137 7.51 11.50 7.1 53 3Aggressive and resil ient at the same time: Solid financials poised for growth, backed by safe assets and quality clients
Baiyun International Airport (600004 CH)^
Transport Support Services
27 12.97 16.00 12.3 23 3
More duty free operation tipped to ease T2 impact: Contribution from arrival duty free business revenue plus more departure duty free sales to offset new capacity cost
Great Wall Motors (601633 CH)^
Automobiles 74 12.26 15.00 11.6 22 3Beating market expectations: launching of new models and new powertrain will optimize its product mix and help improve profitability outlook.
SZ Expressway (600548 CH)^
Infrustructure Construction
14 9.78 11.80 9.3 21 3
Strengthening core while seeking transformation: Net cash of Rmb3bn upon repurchase of three toll roads will be used to consolidate main business and facilitate transformation
Beijing Capital Development (600376 CH)^
Real Estate Owners & Developers
29 11.06 13.31 10.5 20 3Sales growth second to none: Far ahead of peers in housing sales.
Bank of Nanjing (601009 CH)^
Banking Services 68 8.05 9.29 7.6 15 3Active expansion: A better-than-expected first half thanks to scale expansion; capital replenishment a positive response to business model.
Daqin Railway (601006 CH)^
Rail Transportation
133 8.97 10.30 8.5 15 3Gold shines as sands are being washed away: Upbeat on industry leaders with a resource edge
Aggressive StockSMkt Cap PriceU Target Stop Loss Upside Risk
Company Business (Rmb bn) (Rmb) (Rmb) (Rmb) (%) rating Remarks
Realcan Pharmaceutical (002589 CH)*
Drug & Medical equipment
23 15.43 48.09 14.7 212 3
Becoming a national medical equipment distributor: Share placement to ease short-term financial pressure and ef forts to quickly extend business footprint nationwide.
Dongfang Energy (000958 CH)*
Utility Networks 8 7.51 21.20 7.1 182 3Projects gaining traction: Looking to faster progress in alternative-energy projects and asset injection from parent.
Tong Oil Tools (300164 CH)
Oil & Gas Services & Equip
3 6.06 14.23 5.8 135 3
Oil giants’ reports bode well for oilf ield service prov iders: Industr y opening up oppor tunit ies , shale oil and offshore oil segments standing out in particular
Wellhope Agri-Tech (603609 CH)^
Animal Feed 8 9.35 21.60 8.9 131 3
Adding overseas resources: Poised to gain from agricultural development in association with the “One Road One Belt” scheme while advancing on “Internet+” strategy.
Xinjiang Tianye (600075 CH)^
Basic & Diversified Chemicals
9 9.27 19.49 8.8 110 3Prices of chemicals tipped to remain elevated: Prices likely to hike further on re-stocking, providing drive to sector earnings growth
Greenland (600606 CH)^
Real Estate Services
93 7.63 15.55 7.2 104 3
Sailing into the REITs blue ocean: Hotel investment trust being hatched for Singapore l ist ing; large shareholders showing confidence acquiring more stakes.
Pinggao Electric (600312 CH)^
Power Equipment
16 11.92 24.25 11.3 103 3Explosive growth of UHV business: forecast-beating resul t s on recognized UHV income and more profitable product mix.
Baolihua New Energy (000690 CH)*
IPP 17 7.91 14.90 7.5 88 3Rmb3bn new share i s suance mi r ro r s s t rong confidence: Core business has promising growth outlook; internet financing opens up upside.
Dinghan Technology (300011 CH)*
Rail Transportation Systems
8 14.06 25.37 13.4 80 3
Increasing presence in the urban rail transportation m a r ke t : T h e d e ve lo p m ent o f n e w p ro d u c t s and branching into the urban rai l and subway maintenance and security market ensure growth.
Grand Auto (600297 CH)^
Agricultural Chemicals
59 8.28 14.00 7.9 69 3Driven by auto financing and second-hand car sales: China’s largest car dealer aiming at top-of-the-world rank
Source: Bloomberg, CS U Closing prices as of 13 Oct 2017 * Shenzhen-HK Stock Connect – Northbound Stocks (ChiNext Board for Professional Institutional Investors Only) ^ Shanghai-HK Stock Connect – Northbound Stocks # Sell Only Risk Rating: 1 to 5 in ascending order
12 16 Oct 2017
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a-share reCoMMended stoCks:
Mkt Cap PriceU Target Stop Loss Upside Risk
Company Business (Rmb bn) (Rmb) (Rmb) (Rmb) (%) rating Remarks
Yibai Pharmaceutical (600594 CH)^
Generic Pharma 11 13.66 22.40 13.0 64 3A new healthcare arm to integrate tumor treatment resources: Speeding up resource consolidation and looking to set up shops across the nation
FAWER Automotive Parts (000030 CH)*
Auto Parts 11 8.98 14.00 8.5 56 3B u s i n e s s c l i m a te to re m a i n u p b e a t : 4 Q16E performances may surprise the market on the upside.
Zhongding Sealing Parts (000887 CH)*
Auto Parts 25 20.63 32.00 19.6 55 3Increase exposure to smart driving:Auto industry heading towards smart driving and electrical vehicles.
China South Publishing & Media (601098 CH)^
Media 28 15.54 24.00 14.8 54 3Deserving richer valuation: A much undervalued stock seeing catalysts emerging on the upside
Changan Automobile (000625 CH)*
Automobiles 56 14.25 22.00 13.5 54 3Partnering Baidu to push ahead with smart vehicle: Strategic alliance with search engine to venture into H2M connection and smart driving.
CM Shekou (001979 CH)*
Investment Companies
145 18.29 28.20 17.4 54 3Expanding land bank: Active land purchases in Sept to keep inventory value rising
Overseas Chinese Town (000069 CH)*
Real Estate Owners & Developers
70 8.47 12.92 8.0 53 3Faster strategic move: The most important listed arm with strong innovation and increasingly visible prospects
Weifu High-Tech (000581 CH)*
Fuel Injection Pumps
21 25.13 38.00 23.9 51 3B u s i n e s s c l i m a te to re m a i n u p b e a t : 4 Q16E performances may surprise the market on the upside.
Xilinmen (603008 CH)^Home & Office Furnishings
7 17.69 26.70 16.8 51 3A warming market for home furnishing: Continuous improvement and emerging demand for tailor-made furniture.
Robam Appliances (002508 CH)*
Home Improvement
45 47.18 70.00 44.8 48 3Another forecast-beating quarter: Visible outlook and potential to perform better than expected in 2017E
CYTS Tours (600138 CH)^
Tourism Services 15 20.33 30.00 19.3 48 3Watch out for sector rotation amid the arrival of the peak season: the business climate for the tourism sector is improving.
Irtouch Systems (300282 CH)
Electronics Components
6 22.28 32.00 21.2 44 3Income and earnings soaring in tandem: Revenue mix upgrading further under strong business execution
Bailian Group (600827 CH)^
Food & Drug Stores
25 15.69 22.00 14.9 40 3Alibaba to partner up with Lianhua Supermarket: Undervalued counter with remarkable upside.
NBTM New Materials (600114 CH)
Auto Parts 8 17.69 24.80 16.8 40 3Riding on new powder metallurgical technology: High value-added products securing profitability
Yuto Packaging Tech (002831 CH)*
Containers & Packaging
26 64.99 90.90 61.7 40 3Splendid result s underscore excellence: Upbeat indust r y cl imate, fas ter market expansion and potential re-rating on the upside
Financial Street (000402 CH)*
Real Estates 36 12.07 16.77 11.5 39 3Bei j ing Real Es tate Sector : Buy ing inves tment properties in core districts while staying away from so-called “king plots”.
Gemdale (600383 CH)^Real Estate Owners & Developers
52 11.60 15.99 11.0 38 3Embracing peak season for project launch: Rolling out more projects than previously planned
HMT New Technical Materials (603306 CH)^
Textile & Textile Products
7 31.73 43.50 30.1 37 3Sustainable growth: A beneficiary of increasing use of airbags and the recall of Takata
Huayu Automotive (600741 CH)^
Auto Parts 71 22.62 31.00 21.5 37 3Proposed acquisition of premium auto lamp maker: Buying an automotive lamp maker as a step towards business neutralization.
Redsun (000525 CH)*Agricultural Chemicals
13 22.00 30.00 20.9 36 3Enjoying bonus for leading pesticide producers: Environmental pressure to slash industry capacity, to the benefit of key players
Kingenta (002470 CH)*Agricultural Chemicals
27 8.45 11.36 8.0 34 3Get t ing in to agr i cu l t u ra l se r v i ces : A se r v i ce subsidiary to drive transformation from conventional manufacturer into producer and solution provider
Jiajiayue Group (603708 CH)
Food & Drug Stores
8 17.21 23.00 16.3 34 3
Earnings growth picking up pace: Upgrading stores, optimizing product mix, improving supply chain efficiency and rolling out new partnership system to build a strong foundation for future growth
Jiangxi Copper (600362 CH)^
Base Metals 38 18.37 24.50 17.5 33 3Higher copper prices a boost to profit: Core business growing steadily, with 2H17E copper price to propel earnings
Qingdao Kingking (002094 CH)*
Basic & Diversified Chemicals
9 22.70 30.00 21.6 32 3New chapter in growth: Poised to lead the pack in market cap and profit
Shanghai Mech & Elect (600835 CH)^
Elevator 16 19.80 26.16 18.8 32 3Smart equipment platform established: The Company may serve as platform for parent to float more quality assets going forward.
Source: Bloomberg, CS U Closing prices as of 13 Oct 2017 * Shenzhen-HK Stock Connect – Northbound Stocks (ChiNext Board for Professional Institutional Investors Only) ^ Shanghai-HK Stock Connect – Northbound Stocks # Sell Only Risk Rating: 1 to 5 in ascending order
13 16 Oct 2017
Please refer to the attachment for detailed disclaimer and regulatory disclosures.
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Mkt Cap PriceU Target Stop Loss Upside Risk
Company Business (Rmb bn) (Rmb) (Rmb) (Rmb) (%) rating Remarks
Aisino (600271 CH)^Computer Hardware & Storage
36 19.10 25.00 18.1 31 3Smart manufacturing scheme out: Looking to the start of a pilot phase, with leaders benefiting from friendly environment
Keyvia Electric (300407 CH)
Transit Services 4 15.60 20.20 14.8 29 3Bellwether in railway electrif ication: Acquisition of German technology to create synergy and increase earnings upside
Yinlun Machinery (002126 CH)*
Auto Parts 8 10.25 13.20 9.7 29 3Securing high growth ahead: Passenger vehicle business expanding swiftly and commercial vehicle bouncing back on favorable climate
Yang Quan Coal (600348 CH)^
Coal Operations 19 7.84 10.05 7.4 28 3Hit t ing the sweet spot : Warmer- than-expected industry climate and increasingly clear earnings visibility
Weichai Power (000338 CH)*
Commercial Vehicles
48 7.95 10.00 7.6 26 3Overseas purchases to boost compet i t iveness: Benefiting from favorable climate and international acquisitions
Xiamen Tungsten (600549 CH)^
Base Metals 33 30.82 38.00 29.3 23 3Growing on dual engines of tungsten and cathode materials: Warm industry climate in new-energy sector to drive up demand for cathode materials.
Neway (603699 CH)^Fabricated Metal & Hardware
12 16.59 20.37 15.8 23 3A real gem: Ready to rebound in 2017E on growing demand from petrochemical and nuclear power sectors
Bank of China (601988 CH)^
Banking Services 873 4.14 5.08 3.9 23 3
An elephant dancing to the national strategy tune: Well positioned in global f inancial operation and ready to gain from RMB internationalization and “One Belt One Road”.
DHC Software (002065 CH)*
Computer Hardware & Storage
36 11.41 14.00 10.8 23 3Focusing on long-term development: Initial step into Henan Province for long-term expansion in central China
China Fortune (600340 CH)^
Real Estate Owners & Developers
921 31.16 38.10 29.6 22 3Beijing Real Estate Sector: Piloting the industrial new-city model in areas surrounding Beijing and actively participating in PPP projects.
Spring Airlines (601021 CH)^
Airlines 28 35.38 43.00 33.6 22 3Returning to positive growth: Greater earnings upside in high-end markets
Shanghai Jahwa (600315 CH)^
Household Products
24 35.39 43.00 33.6 22 3Curtain rises for product category expansion: Joint venture to launch product category expansion at low cost and low risk.
Truchum Advanced Materials (002171 CH)*
Base Metals 9 8.27 10.10 7.9 22 3Skewing towards new materials: Developing new materials a part of national strategy
Dongjiang Environmental (002672 CH)*
Waste Management
12 17.45 21.20 16.6 21 3Stronger capital on share placement: Clearly positive climate for waste treatment and detoxification likely to speed up earnings
Chongqing Department Store (600729 CH)^
Department Stores
12 28.40 34.50 27.0 21 3Embracing reform and innovation: Alibaba and local government collaboration to of fer growth opportunities
Jinjiang Development (600754 CH)^
Lodging 24 30.05 36.12 28.5 20 3
Readying for a leap: Faster asset revamp and incentive program expected against the SOE reform backdrop, while Shanghai Disney ready to fuel longer-term earnings growth.
Vanke (000002 CH)*Real Estate Owners & Developers
262 26.93 32.36 25.6 20 3Opting for sustainable growth: Replenishing land reserves with quality plots spelling higher value
Jiuzhou Pharma (603456 CH)
Specialty Pharma 8 16.77 20.00 15.9 19 3One-stop service provider for new drug R&D: Joining Frontage and making steady progress in CDMO strategy.
SAIC Motor (600104 CH)^
Automobiles 374 31.97 38.00 30.4 19 3Accelerating by the quarter: New model launches for both local and JV brands, wide margin of safety on high dividend payout and yield
Jiangshan Agrochemical & Chemicals (600389 CH)^#
Agricultural Chemicals
6 21.05 25.00 20.0 19 3Upbeat supply-demand prof ile on environmental pressure: Glyphosate price returning to and expected to stay on the upward trajectory
Shenzhen Gas (601139 CH)^
Utility Networks 19 8.69 10.30 8.3 19 3Gas sales of increasing volume: 2H sales tipped to rise further, cementing a 20% expansion in gas margin
China Merchants Bank (600036 CH)^
Banking Services 540 26.20 31.00 24.9 18 3Promising outlook: Ample capital and clear allocation strategy
Jason Furniture (603816 CH)^
Home & Office Furnishings
22 53.85 63.70 51.2 18 3Joining hands with developer for further growth: Tapping new potentials
Source: Bloomberg, CS U Closing prices as of 13 Oct 2017 * Shenzhen-HK Stock Connect – Northbound Stocks (ChiNext Board for Professional Institutional Investors Only) ^ Shanghai-HK Stock Connect – Northbound Stocks # Sell Only Risk Rating: 1 to 5 in ascending order
14 16 Oct 2017
Please refer to the attachment for detailed disclaimer and regulatory disclosures.
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Mkt Cap PriceU Target Stop Loss Upside Risk
Company Business (Rmb bn) (Rmb) (Rmb) (Rmb) (%) rating Remarks
Sinomach Automobile (600335 CH)^
Automotive Wholesalers
14 13.53 16.00 12.9 18 3NEV investment to help lift valuation: Venturing into the NEV realm
Bright Dairy (600597 CH)^
Dairy 18 14.38 17.00 13.7 18 3Fresh 3-year plan: Development scheme to step up old and new businesses and enhance brand power.
Huangshan Tourism (600054 CH)^
Real Estate Owners & Developers
8 16.39 19.20 15.6 17 3Better-than-expected 1Q16 results: Strong tourist flow sustainable, cost reduction effective and profitability enhanced.
Industrial Bank (601166 CH)^
Banking Services 370 17.80 20.85 16.9 17 3Freeing up excess reserve to smooth volat i l i t y : Moderate improvement in f inancia l data and accommodating new rules for reserves .
Yangtze Power (600900 CH)^
Power Generation
338 15.37 18.00 14.6 17 3Cash dividend trumping est imates: Bet ter- than-expected payout and positive impact from industrial investment
Huadong Medicine (000963 CH)*
Medicines Retailing
52 53.50 62.64 50.8 17 3Supported by organic reform: Rich pharmaceutical portfolio and robust core products sales
Jufei Optoelectronics (300303 CH)*
Semiconductor Devices
5 4.32 5.04 4.1 17 3Core business beat ing est imates: Back l ight ing products to re-accelerate and a promising land of optic communication ahead
China Construction Bank (601939 CH) ^
Banks 67 7.03 8.20 6.7 17 3Promising outlook: Ample capital and clear allocation strategy
Xixia Automobile Water Pump (002536 CH)
Auto Parts 5 16.44 19.00 15.6 16 3Rewarding new products: R&D, NEV electronics and engine heat management to drive growth
China National Accord Medicines (000028 CH)*
Health Care Supply Chain
26 69.08 79.80 65.6 16 3A sharp rise in profitability: Impressive headroom for share price
Ningbo Huaxiang Electronic (002048 CH)*
Auto Parts 14 26.03 30.00 24.7 15 3More concentrated shareholding: De facto controller raising stake, further streamlining the interest of all parties
very Agressive StockSMkt Cap PriceU Target Stop Loss Upside Risk
Company Business (Rmb bn) (Rmb) (Rmb) (Rmb) (%) rating Remarks
Chuying Agro-Pastoral (002477 CH)*
Pork and Poultry Products
14 4.59 27.60 4.4 501 3
Benefit from this round of up-cycle for hog price: Due to strained and broken capital chain for the livestock breeding industry, sow population may thus hit record lows repeatedly going forward and thus potentially pushing hog prices to new highs.
Beijing Tongtech (300379 CH)*
Information Services
5 17.55 100.00 16.7 470 3New model fo r dat a in tegrat ion: Look ing to breakthroughs in project construction fee payment system to monetize sustainable payment flow.
Janus Precision (300083 CH)*
Electronic Components
13 9.04 46.00 8.6 409 3
Moving early for Industry 4.0: A national smart manufacturing demonstration pilot boasting scarce resources, poised to gain f rom accommodative policies.
Haoxiangni (002582 CH)
Packaged Food 7 12.76 45.00 12.1 253 3
Nuts are core in online food sales: Nuts outrunning all other snacks in online food sales during the Chinese New Year holidays; online venders with nuts as core products ready for a bumper harvest ahead
Kailong (002783 CH) Chemicals 5 24.09 75.38 22.9 213 3Explosive growth ahead: Expect the regional leader to log net profit growth of 10%-plus CAGR in 2015-17E.
Hailun Piano (300329 CH)*#
Music Instruments
3 11.22 29.00 10.7 158 3An O2O platform for music education: Linking smart piano with music education to generate new growth drivers.
Chant Group (002616 CH)
Household Cooking Appliances
8 11.10 27.70 10.5 150 3Chant Group: An operationally stable counter in a high-growth sub-sector, with visible and sustainable growth ahead
Meiya Optoelectronic (002690 CH)*
Measurement Instruments
13 18.77 45.50 17.8 142 3Building up presence in mobile healthcare: Adding presence in the oral/mobile healthcare sector.
Source: Bloomberg, CS U Closing prices as of 13 Oct 2017 * Shenzhen-HK Stock Connect – Northbound Stocks (ChiNext Board for Professional Institutional Investors Only) ^ Shanghai-HK Stock Connect – Northbound Stocks # Sell Only Risk Rating: 1 to 5 in ascending order
15 16 Oct 2017
Please refer to the attachment for detailed disclaimer and regulatory disclosures.
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Mkt Cap PriceU Target Stop Loss Upside Risk
Company Business (Rmb bn) (Rmb) (Rmb) (Rmb) (%) rating Remarks
Sanquan Food (002216 CH)*
Packaged Food 7 8.76 20.00 8.3 128 3
The post-1990 cohort : Eat , drink and have fun: Following the spending trend of the post-1990 cohort and selecting sub-sectors with potential upsides in both output and price.
Sierte (002538 CH)*Agricultural Chemicals
7 9.17 20.00 8.7 118 3Creat ing an overal l health and wel lness fund: Healthcare fund expected to boost revenue going forward
Navtech (300456 CH)Consumer Eletronics
83 44.08 96.10 41.9 118 3Expecting explosive growth on MEMS: Leveraging on Silex edge and favorable industry climate
China Hi-tech (600730 CH)^#
Comml & Res Bldg Equip & Sys
5 8.29 17.00 7.9 105 3Forming a large-scale vocational education group: Transforming into an education provider with massive on/offline courses.
Jereh Oilfield Services (002353 CH)*
Oil & Gas Services & Equip
15 16.07 32.00 15.3 99 3
Oil giants’ reports bode well for oilf ield service prov iders: Industr y opening up oppor tunit ies , shale oil and offshore oil segments standing out in particular
EVE Energy (300014 CH)*
Renewable Energy Equipment
22 25.45 50.00 24.2 96 3Policy guidance to beef up industry leaders: Large-scale manufacturers of car bat teries to r ide on favorable policy and first-mover advantages
ORG Packaging (002701 CH)*
Containers & Packaging
16 6.68 13.00 6.3 95 3Acquiring a football club: Fair price for good value, leading the way into the sports arena.
Hejia (600093 CH)^ Auto Parts 13 11.84 22.00 11.2 86 3Building up a financing chain for the coal industry: Significant potential in business growth and earnings/dividend commitments
Victory Precision (002426 CH)*
Structural Components for TV and laptop
26 7.65 14.00 7.3 83 3Potential growth in Industry 4.0: Scale expansion to cut into Industry 4.0 for high growth ahead.
Hongda Xingye (002002 CH)*
Packaging Materials
20 7.85 14.00 7.5 78 3Reaping fruits from soil remediation projects: Guiding strong earnings growth for 1-3Q17E
TV & Broadcast Intermediary (000917 CH)*
Advertising & Marketing
15 10.90 19.34 10.4 77 3Active transformation into an internet-based new media play: Building up a not-notch entertainment ecosystem.
Apex (002180 CH)*Power Generation
32 31.52 55.50 29.9 76 3
From chip maker to printing system leader: Solid base in printing consumables and chips manufacturing, future business growth in providing printing system solutions.
Sunner Develop (002299 CH)*
Meat Type Chicken Products
17 15.72 27.60 14.9 76 3
Seize the opportunity from oversold poultry plays: Another round of broiler price hikes drawing near and upbeat industry climate tipped to last into 2018E on tight supply
Goldwind (002202 CH)*
Wind Power 40 13.67 24.00 13.0 76 3
Share placement to executives underscores full conf idence: Management clearly shows staunch confidence for the Company to ride even higher going forward.
Offshore Oil Engineering (600583 CH)^
Oil & Gas Services & Equip.
28 6.26 10.80 5.9 73 3Upside for re-rating: 2016E earnings likely to ease moderately, with overseas orders on the rise.
GoerTek (002241 CH)*Consumer Electronics
68 20.82 35.84 19.8 72 3A g lobal leader in VR lens : Super ior pos i t ion underscored by gap between HTC and Oculus in VR lens
Xinyangfeng Fertilizer (000902 CH)*
Agricultural Chemicals
13 10.09 17.08 9.6 69 3Alliance with Alibaba: Tying up with e-commerce giant to enter the rural on/off-line business world.
Cha Cha Food (002557 CH)*
Packaged Food 8 14.93 25.00 14.2 67 3
Nuts are core in online food sales: Nuts outrunning all other snacks in online food sales during the Chinese New Year holidays; online venders with nuts as core products ready for a bumper harvest ahead
Wiscom (002090 CH)*#Application Software
6 25.29 42.00 24.0 66 3Going from strength to strength:Great potential in new energy and smart city business.
Jinyu Bio-technology (600201 CH)^
Animal Biopha-rmaceuticals
23 25.26 41.70 24.0 65 3Pushing ahead with supply-side structural reform in agriculture:Technology positives to benefit seed and immunization leaders.
Huayi Brothers (300027 CH)*
Movie/TV drama
25 9.09 14.97 8.6 65 3
Set sail for an exciting long journey with powerful partners onboard: Cooperate with Alibaba and Tencent in e -commerce, new media and movie production development.
Tungkong (002117 CH)*
Printing Services 8 22.80 36.40 21.7 60 3Rapidly growing new businesses: Expecting the sports lottery market to expand and favorable policy to drive up stock price.
Source: Bloomberg, CS U Closing prices as of 13 Oct 2017 * Shenzhen-HK Stock Connect – Northbound Stocks (ChiNext Board for Professional Institutional Investors Only) ^ Shanghai-HK Stock Connect – Northbound Stocks # Sell Only Risk Rating: 1 to 5 in ascending order
16 16 Oct 2017
Please refer to the attachment for detailed disclaimer and regulatory disclosures.
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Source: Bloomberg, CS U Closing prices as of 13 Oct 2017 * Shenzhen-HK Stock Connect – Northbound Stocks (ChiNext Board for Professional Institutional Investors Only) ^ Shanghai-HK Stock Connect – Northbound Stocks # Sell Only Risk Rating: 1 to 5 in ascending order
Mkt Cap PriceU Target Stop Loss Upside Risk
Company Business (Rmb bn) (Rmb) (Rmb) (Rmb) (%) rating Remarks
Kaier New Materials (300234 CH)
Enamel 4 12.54 20.00 11.9 59 3
Leaping into a new stage of development: The Company w i l l pos s ib l y ente r a h igh - g row th period and upgrade to a new stage in business development.
Changgao (002452 CH)
Infrustructure Machinery
4 7.39 11.47 7.0 55 3
Acquisition of a giant sets a milestone: High-voltage electric power distribution box for electric cars a rising star in the market; investment in Hangzhou Fute highly promising
Fenghua Advanced Technology (000636 CH)*
Electrical Components
9 9.68 14.59 9.2 51 3New opportunities: Scale and business expansion to be fueled by SOE reform.
Zhejiang Zhenyuan (000705 CH)
Specialty Pharma
4 10.75 16.00 10.2 49 4Cooperating with a local hospital: Systematic training for TCM staff and faster drug adoption for certain diseases.
Fiyta (000026 CH)Jewelry & Watch Stores
4 12.20 18.00 11.6 48 3Strong brand, substantial upside: A warming luxury watch market and upbeat outlook for watch repair and maintenance
Yongli Belting (300230 CH)
Light Duty Conveyor Belts
7 15.47 22.60 14.7 46 3Private placement to finance premium asset purchase: Full acquisition backed by private placement ready to catapult earnings growth going forward.
Hailide (002206 CH)* Textile 8 6.79 9.90 6.5 46 3
Meaningful upturn in demand: Improving demand on the back o f bet ter technology, changing downstream competitive landscape and increasing localization.
Songcheng Performance (300144 CH)*
Theme Park & Cultural Arts
28 19.48 28.40 18.5 46 3Hatching the first offshore project: Making headways on/off-line and on/offshore.
Shouhang Resources Saving (002665 CH)*
Comml & Res Bldg Equip & Sys
20 8.03 11.70 7.6 46 3Killing two birds with one mixed-ownership stone: Faster advance on reform and business upturn
Guoxuan High-Tech (002074 CH)*
Electrical Power Equipment
28 32.13 46.40 30.5 44 3Policy guidance to beef up industry leaders: Large-scale manufacturers of car bat teries to r ide on favorable policy and first-mover advantages
Lianchuang Electronic (002036 CH)*
Consumer Electronics
12 21.34 30.78 20.3 44 3Investment prospects in science and technology: 2017E to see equipment market expansion and explosive content growth.
Xinye Textile (002087 CH)
Textile & Textile Products
5 6.18 8.91 5.9 44 3Riding on capacity release and favorable policies: Enhancing operating results on greater capacity, upgrading products and effective cost control
Zhengzhou Coal Mining Machinery (601717 CH)^
Flow Control Equipment
11 7.65 10.90 7.3 42 3To leapfrog via Bosch SG acquisition: Premium target expected to boost profitability in the long run.
Zhongbai Group (000759 CH)
Department Stores
6 9.42 13.40 8.9 42 3Among the first to benefit from SOE reform: Potential breakthroughs in management incentive programs
Shida Shenghua Chemical (603026 CH)
Basic & Diversified Chemicals
6 31.09 44.20 29.5 42 3A green leader in electrolyte production: Upcoming full line of electrolyte products to tap into the swelling lithium battery market
Sanyou Chemical (600409 CH)^
Basic & Diversified Chemicals
24 11.53 16.30 11.0 41 3Stellar performance of all core businesses: Expecting high growth to continue in 2H on friendly climate
Titan Wind Energy (002531 CH)*
Electrical Power Equipment
11 6.38 9.00 6.1 41 3
Acquisition of South Kerry Windpower: Shelling out Rmb100mn for 58% of a wind-power company to further enlarge the share of the wind-power tower market.
Bairun (002568 CH)* Flavorings 13 19.13 26.50 18.2 39 3To new spirits: Premixed package spirits are rapidly growing in popularity, creating tantalizing upside for the monopolistic ingredients maker.
Gehua CATV (600037 CH)^
Cable TV Network
21 14.86 20.52 14.1 38 3Clearly an asset consolidation platform: More high-quality asset injections likely and potential upside in value on shift toward new media.
Kangni Mechanical (603111 CH)^
Electronic Components
11 14.98 20.50 14.2 37 3Acquisi t ion target may surprise on the upside: Proposing merger to tap into the growing mobile casing market
Weixing New Materials (002372 CH)*
Plastic Pipe 19 18.35 25.00 17.4 36 3
Visible outlook of infrastructure: Construction of infrastructure projects will play a bigger role than real estates in stabilizing growth, offering opportunities with relatively certainty.
Venustech (002439 CH)*
Infrastructure Software
20 22.32 30.00 21.2 34 3Strategic partnership with Tencent: New growth potential and faster scale expansion ahead
17 16 Oct 2017
Please refer to the attachment for detailed disclaimer and regulatory disclosures.
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Source: Bloomberg, CS U Closing prices as of 13 Oct 2017 * Shenzhen-HK Stock Connect – Northbound Stocks (ChiNext Board for Professional Institutional Investors Only) ^ Shanghai-HK Stock Connect – Northbound Stocks # Sell Only Risk Rating: 1 to 5 in ascending order
Mkt Cap PriceU Target Stop Loss Upside Risk
Company Business (Rmb bn) (Rmb) (Rmb) (Rmb) (%) rating Remarks
Heilan Home (600398 CH)^
Specialty Apparel Stores
47 10.56 14.04 10.0 33 3Advancing the multi-brand strategy: Expanding scale and widening presence via UR acquisition
Tianyuan DIC (300047 CH)*
Application Software
5 14.12 18.70 13.4 32 3Expect big data to be re-rated: A rare big-data play in the A-share market looking to faster business growth
Dabeinong (002385 CH)*
Animal Feeds 26 6.25 8.10 5.9 30 3Ahead of expectations: Reaping fruits from multiple businesses
Vtron Tech (002308 CH)*
Consumer Electronics
13 14.94 19.36 14.2 30 3Acquiring a controlling share in Keer Education: Leveraging on top-quality education resources and offline development in core cities.
Nhwa Pharmaceutical (002262 CH)*
Food & Drug Stores
15 14.94 19.21 14.2 29 3Exclusive agent for a premium anesthetic from the US: Signing a pact with LSI for marketing ProSQ in China
CIMC (000039 CH)*Fabricated Metal & Hardware
24 18.95 24.30 18.0 28 3Framework pact signed for Qianhai plot : Land conversion to commercial use t ipped to boost valuation and balance sheet
Changjiang Electronics (600584 CH)^
Semi Conductor 27 19.50 25.00 18.5 28 3Leading the race: Intensifying M&As as the Moore’s Law coming towards a bottleneck
Taihai Manoir Nuclear (002366 CH)*
Flow Control Equipment
24 27.30 35.00 25.9 28 3Alloy edge to drive growth: Ambition to become a high-market equipment producer with a diversified business structure
Star-net Communication (002396 CH)*
Communication Equipment
13 21.66 27.60 20.6 27 3
L ink ing up wi th PayPa l and look ing to fas ter growth of KTV app: Cooperation with PayPal and Micropayment may lead to a breakthrough in O2O business and accelerate the growth of its KTV app market.
Haid Group (002311 CH)*
Agricultural Producers
30 19.26 24.40 18.3 27 3Pushing ahead with supply-side structural reform in agriculture: Service positives to benefit comprehensive platform operators.
Shanghai Ganglian (300226 CH)*
Internet Based Services
63 39.55 50.00 37.6 26 3Reaching the internet for more upside: Pocketing IT portal operator to gain from its promising profits ahead
Xiangyu (600057 CH)Logistics Services
12 10.53 13.20 10.0 25 3Looking up: Faster growth via increasing presence along industry chain and southbound grain shipment
Guirenniao (603555 CH)^#
Apparel & Footwear
13 21.25 26.55 20.2 25 3Running into the sports arena: Operating sports resources/content s , media and monet izat ion structure, and looking to a bright future.
Lao Feng Xiang (600612 CH)^
Jewelry & Watch Stores
13 41.62 52.00 39.5 25 3Set to benefit from industry recovery: Top-brand retailer a step ahead of peers amid warming sales
Kehua Hengsheng (002335 CH)*
Electrical Power Equipment
11 38.23 47.40 36.3 24 3Emerging in top-t ier markets: Cloud computing project in Shanghai received go-ahead
Tatwah Smartech (002512 CH)*
Electronic Components
21 19.40 23.76 18.4 22 3Well -def ined direct ion for business upgrading: Acquiring control of Card-U, leveraging on payment licensing and extending into financial services.
China Animal Husbandry (600195 CH)^
Animal Feeds & Vaccine
9 19.86 24.32 18.9 22 3Enhanced produc t qua l i t y : Bet ter qua l i t y on upgraded technology to support sales and profit.
Zhejiang Transfar (002010 CH)*
Specialty Chemicals
53 16.15 19.50 15.3 21 3U p p e d e a r n i n g s co m m i t m e n t u n d e r s co r e s confidence in long-term growth: Still optimistic about strategic presence in highway/port logistics.
18 16 Oct 2017
Please refer to the attachment for detailed disclaimer and regulatory disclosures.
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Top 20 GainersCompany
Price (Rmb)
WoW Chg (%)
Guofang Industry (601086 CH) 7.34 61
Astro-Century (300654 CH) 23.80 61
Cisen Pharmaceutical (603367 CH) 27.05 61
IReader Technology (603533 CH) 16.64 61
La Chapelle Fashion (603157 CH) 28.56 61
Mentech Optical (002902 CH) 32.78 61
Dali Pharmaceutical (603963 CH) 46.98 61
GenSho Logistics (603813 CH) 55.58 61
Asia Cuanon (603378 CH) 33.00 61
Double Medical (002901 CH) 43.21 61
Aonong Biological (603363 CH) 14.80 61
Tianmu Lake Tourism (603136 CH) 55.22 61
Acetron New Materials (300706 CH) 30.78 61
Huayuanyitong (002893 CH) 41.82 58
Transtek Medical (300562 CH) 34.69 50
Aolian AE&EA (300585 CH) 29.40 46
Andon Health (002432 CH) 15.51 46
Magic Design (002856 CH) 43.16 38
GEPIC Energy (000791 CH) 11.21 37
Will Semiconductor (603501 CH) 32.63 34
Top 20 LosersCompany
Price (Rmb)
WoW Chg (%)
Electrical Alloy (300697 CH) 28.51 (19)
Meilun Elevator (603321 CH) 16.43 (18)
Sunstone Development (603612 CH) 56.61 (17)
Guangdong Champion (603386 CH) 21.52 (15)
Lecron Internet (300343 CH) 15.49 (15)
Wanma Technology (300698 CH) 37.61 (14)
HualuBaina Film (300291 CH) 15.49 (14)
Tianyu Pharmaceutical (300702 CH) 53.21 (13)
Hezong Science (300477 CH) 26.00 (13)
Cre8 Direct Ningbo (300703 CH) 46.00 (13)
Baoji Titanium (600456 CH) 23.78 (12)
Kexin Mechanical (300092 CH) 11.18 (12)
Qinghai Salt Lake (000792 CH) 16.66 (12)
Clad Material (300337 CH) 9.35 (12)
Sanchao Advanced (300554 CH) 69.62 (12)
Zhenghai Magnetic Material (300224 CH) 11.83 (12)
Yankershop Food (002847 CH) 35.81 (12)
Chuangxin New Material (002812 CH) 110.53 (12)
Dowstone Technology (300409 CH) 46.99 (12)
YinXing Energy (000862 CH) 7.01 (11)
Source: Bloomberg, CS * Closing prices as of 13 Oct 2017
19 16 Oct 2017
Please refer to the attachment for detailed disclaimer and regulatory disclosures.
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a/h preMiuM table
A-share H-share CompanyPrice
(Rmb)
A/H premium
(%)
600876 CH 1108 HK Luoyang Glass 24.77 537
002703 CH 1057 HK Zhejiang Shibao 12.21 386
002490 CH 568 HK Shangdong Molong 5.06 331
600874 CH 1065 HK Tianjin Capital Environmental 17.66 298
601326 CH 3369 HK Qinhuangdao Port Co Ltd 8.49 274
600860 CH 187 HK Beijing Jingcheng 7.53 260
000585 CH 42 HK Northeast Electric Dev. 5.26 220
600806 CH^ 300 HK^ Kunming Machine 6.44 207
601375 CH 1375 HK Central China Securities Co Ltd 9.33 196
600871 CH 1033 HK Sinopec SSC 3.15 179
601038 CH 38 HK First Tractor 8.98 172
601811 CH 811 HK Xinhua Winshare 15.32 168
601727 CH 2727 HK Shanghai Electric 7.94 166
601866 CH 2866 HK CSCL 3.85 159
600012 CH 995 HK Anhui Express 13.10 159
600775 CH 553 HK Nanjing Panda 11.72 153
601881 CH 6881 HK China Galaxy Securities Co Ltd 14.99 152
601880 CH 2880 HK Dalian Port 2.94 151
601588 CH 588 HK Beijing North Star 5.85 132
600958 CH 3958 HK DFZQ 16.09 130
601618 CH 1618 HK Metallurgical Corporation 5.13 129
000756 CH 719 HK Xinhua Pharmaceutical 18.14 127
600685 CH^ 317 HK COMEC 26.66 118
601991 CH 991 HK Datang Int'l Power 4.56 113
600115 CH 670 HK China Eastern Airlines 6.75 102
601919 CH 1919 HK COSCO 6.94 101
601808 CH 2883 HK China Oilfield Services 11.46 98
601717 CH 564 HK ZMJ 7.65 98
601898 CH 1898 HK China Coal 6.24 96
600188 CH 1171 HK Yanzhou Coal 12.58 90
601857 CH 857 HK PetroChina 7.98 90
601992 CH 2009 HK BBMG 6.27 88
603993 CH 3993 HK China Molybdenum 7.17 86
601800 CH 1800 HK China Comm. Construction 15.18 78
600999 CH 6099 HK CMSC 20.26 77
601107 CH 107 HK Sichuan Expressway 4.68 76
600029 CH 1055 HK China Southern Airlines 8.22 75
000921 CH 921 HK Kelon Electric 14.92 75
600635 CH 1635 HK DZUG 5.22 74
600362 CH 358 HK Jiangxi Copper 18.37 74
600026 CH 1138 HK China Shipping Dev. 6.43 73
601788 CH 6178 HK EB Securities 15.46 70
601238 CH 2238 HK Guangzhou Automobile 27.51 69
601899 CH 2899 HK Zijin Mining Group 3.90 65
002672 CH 895 HK Dongjiang Environmenta 17.45 65
600011 CH 902 HK Huaneng Power 6.92 63
002202 CH 2208 HK Goldwind 13.67 61
600027 CH 1071 HK Huadian Power 4.40 60
A-share H-share CompanyPrice
(Rmb)
A/H premium
(%)
600875 CH 1072 HK Dongfang Electrical 10.45 57
601766 CH 1766 HK China South Locomotive 9.87 55
600332 CH 874 HK Baiyunshan 28.84 54
601111 CH 753 HK Air China 8.72 53
601390 CH 390 HK China Railway Group 8.68 52
600688 CH 338 HK Shanghai Petrochemical 6.28 52
000488 CH 1812 HK Chenming Paper 18.83 50
601005 CH^ 1053 HK Chongqing Iron & Steel 2.15 47
601998 CH 998 HK CITIC Bank 6.34 46
000039 CH 2039 HK CIMC 18.95 44
601336 CH 1336 HK New China Life Insurance 57.96 43
600548 CH 548 HK Shenzhen Express 9.78 43
601211 CH 2611 HK Guotai Junan Securities Co Ltd 21.23 42
601688 CH 6886 HK HTSC 21.49 41
000157 CH 1157 HK Zoomlion 4.72 41
601607 CH 2607 HK Shanghai Pharmaceuticals 24.85 41
601186 CH 1186 HK China Railway Construction 11.94 38
600808 CH 323 HK Maanshan Iron & Steel 4.54 38
000513 CH 1513 HK Livzon Pharmaceutical 57.99 38
601628 CH 2628 HK China Life 27.95 37
601600 CH^ 2600 HK Aluminum of China 8.09 36
600837 CH 6837 HK Haitong Securities 14.83 35
601333 CH 525 HK Guangshen Railway 5.03 30
600016 CH 1988 HK Minsheng Bank 8.17 28
601633 CH^ 2333 HK^ Great Wall Motor 12.26 27
601818 CH 6818 HK China Everbright Bank 4.10 27
000776 CH 1776 HK GF Securities 18.94 27
601088 CH 1088 HK Shenhua Energy 20.43 25
601328 CH 3328 HK BoComm 6.31 24
601601 CH 2601 HK Pacific Insurance 37.14 23
601288 CH 1288 HK ABC 3.76 22
601988 CH 3988 HK BOC 4.14 21
000063 CH 763 HK ZTE 29.50 20
601939 CH 939 HK CCB 7.03 20
600196 CH 2196 HK Fosun Pharmaceutical 36.67 19
600028 CH 386 HK Sinopec 5.81 19
600030 CH 6030 HK CITIC Securities 18.00 19
600600 CH 168 HK Tsingtao Brewery 32.85 19
000002 CH 2202 HK Vanke 26.93 18
601398 CH 1398 HK ICBC 6.14 14
000898 CH 347 HK Angang Steel 6.66 11
600660 CH 3606 HK Fuyao Glass 26.25 8
600036 CH 3968 HK China Merchants Bank 26.20 6
601318 CH 2318 HK Ping An 57.08 6
002594 CH 1211 HK Byd Co Ltd 67.72 2
000338 CH 2338 HK Weichai Power 7.95 0
600377 CH 177 HK Jiangsu Express 10.11 (4)
600585 CH 914 HK Anhui Conch Cement 24.09 (8)
Source: Bloomberg, CS * Closing prices as of 13 Oct 2017 ^ Suspended
20 16 Oct 2017
Please refer to the attachment for detailed disclaimer and regulatory disclosures.
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CITIC S&P 50 IndexPER (x) 16-18E Chg (%) 6M Avg Daily T/O Mkt Cap
Sector 16 17E 18E PEG (x) 1-wk 1-mth YTD 1-yr (Rmb mn) (Rmb bn)
Market cap weighted average 36 19 16 0.7 2.3 2.9 30.9 36.3 43,131 14,656
Energy 124 37 25 1.0 (0.8) (1.7) 9.1 18.4 1,137 2,184
Materials 24 16 14 0.8 1.5 (2.7) 23.9 34.0 2,632 411
Capital Goods 16 14 12 1.3 1.0 (1.9) 1.9 26.0 3,940 821
Transportation 19 11 10 0.5 2.5 0.1 26.7 38.9 356 133
Automobiles & Components 11 10 9 1.4 5.9 8.6 36.3 43.1 906 374
Consumer Durables & Apparel 19 15 13 1.0 6.9 12.1 65.9 78.1 4,684 650
Media 19 18 16 2.6 2.3 (1.2) (10.9) (17.1) 136 55
Retailing 180 NA 107 6.0 9.8 19.9 25.7 29.8 556 134
Food, Beverage & Tobacco 37 30 25 1.6 6.1 14.2 65.4 78.6 4,387 1,260
Pharmaceuticals, Biotechnology & Life Sciences 55 45 36 2.4 3.8 5.2 47.2 47.3 694 278
Banks 8 7 7 1.3 1.2 0.9 25.8 25.4 8,278 4,923
Diversified Financials 20 19 16 1.8 (0.4) (0.4) 6.9 5.9 2,631 409
Insurance 29 24 19 1.3 2.7 1.5 38.4 44.8 4,765 1,434
Technology Hardware & Equipment 56 29 24 1.1 10.4 15.1 102.3 104.6 4,494 597
Telecommunication Services NA 95 54 NA (2.3) (3.1) (0.8) 53.6 863 154
Utilities 16 16 16 147.1 1.8 0.6 18.8 13.3 562 404
Real Estate 12 10 9 0.6 1.3 1.0 20.9 3.4 2,110 436
CITIC S&P 300 IndexPER (x) 16-18E Chg (%) 6M Avg Daily T/O Mkt Cap
Sector 16 17E 18E PEG (x) 1-wk 1-mth YTD 1-yr (Rmb mn) (Rmb bn)
Market cap weighted average 35 22 19 1.0 1.9 2.2 26.5 29.0 133,187 25,605
Energy 120 36 24 1.0 (0.8) (2.0) 8.6 17.2 2,588 2,341
Materials 42 23 26 1.6 (0.6) (4.3) 42.4 44.6 24,874 1,438
Capital Goods 28 22 19 1.3 1.2 (0.2) 13.5 22.9 21,275 2,629
Commercial & Professional Services 34 27 21 1.2 2.7 3.7 18.0 8.9 1,188 151
Transportation 23 19 17 1.5 1.7 (0.4) 22.2 25.6 3,774 793
Automobiles & Components 21 19 16 1.4 2.5 7.7 24.9 24.3 4,988 1,147
Consumer Durables & Apparel 28 21 17 1.0 6.7 10.1 50.4 56.3 6,978 952
Consumer Services 25 21 18 1.3 3.8 1.6 40.6 38.8 796 155
Media 52 48 37 2.8 1.3 (0.3) (4.6) (11.9) 2,285 332
Retailing 135 5 91 6.2 7.2 13.4 18.2 19.7 1,424 192
Food & Staples Retailing 69 44 35 1.7 7.6 17.3 52.1 64.6 612 124
Food, Beverage & Tobacco 37 30 25 1.7 5.4 12.4 57.5 67.4 6,086 1,605
Household & Personal Products 111 60 43 1.8 10.0 17.3 30.5 25.8 101 24
Health Care Equipment & Services 24 19 29 NA 5.3 7.5 20.3 19.0 742 146
Pharmaceuticals, Biotechnology & Life Sciences 45 42 35 3.5 3.4 5.9 20.4 18.8 5,531 1,162
Banks 8 7 7 1.3 1.1 0.5 22.9 23.3 10,067 6,311
Diversified Financials 22 21 19 2.4 0.2 (0.8) 2.0 0.6 3,733 671
Insurance 29 24 19 1.3 2.7 1.5 38.4 44.8 4,765 1,434
Software & Services 80 77 58 4.4 2.7 (1.0) 27.4 19.2 5,644 307
Technology Hardware & Equipment 52 31 25 1.2 6.3 9.4 66.3 59.0 11,381 1,244
Semiconductors & Semiconductor Equipment 63 32 23 1.0 0.1 5.9 75.1 77.0 1,262 176
Telecommunication Services 7 86 51 NA (0.1) (0.3) (0.7) 44.8 1,036 185
Utilities 19 24 18 4.9 1.3 (0.2) 10.4 8.8 4,370 1,068
Real Estate 14 11 9 0.6 0.8 (0.8) 13.3 4.6 7,687 1,015
Source: Bloomberg, CS * Closing prices as of 13 Oct 2017 GICS (Global Industry Classification Standard)
Major index perforManCe:
21 16 Oct 2017
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Results Announcement Code Company Estimated Date Financial Year / Quarter^
600415 CG Zhejiang China Commodities City Group Co Ltd Confirmed 17/10/2017 09/17 Q3
600549 CG Xiamen Tungsten Co Ltd Confirmed 17/10/2017 09/17 Q3
601398 CG Industrial & Commercial Bank of China Ltd Confirmed 17/10/2017 09/17 Q3
002230 CS Iflytek Co Ltd Tentative 18/10/2017 09/17 Q3
000559 CS Wanxiang Qianchao Co Ltd Estimated 19/10/2017 09/17 Q3
002007 CS Hualan Biological Engineering Inc Tentative 19/10/2017 09/17 Q3
002241 CS GoerTek Inc Tentative 19/10/2017 09/17 Q3
002271 CS Beijing Oriental Yuhong Waterproof Technology Co Ltd Estimated 19/10/2017 09/17 Q3
600276 CG Jiangsu Hengrui Medicine Co Ltd Confirmed 19/10/2017 09/17 Q3
000001 CS Ping An Bank Co Ltd Tentative 20/10/2017 09/17 Q3
002176 CS Jiangxi Special Electric Motor Co Ltd Estimated 20/10/2017 09/17 Q3
002310 CS Beijing Orient Landscape & Environment Co Ltd Estimated 20/10/2017 09/17 Q3
002475 CS Luxshare Precision Industry Co Ltd Tentative 20/10/2017 09/17 Q3
600256 CG Guanghui Energy Co Ltd Confirmed 20/10/2017 09/17 Q3
600332 CG Guangzhou Baiyunshan Pharmaceutical Holdings Co Ltd Confirmed 20/10/2017 09/17 Q3
600410 CG Beijing Teamsun Technology Co Ltd Confirmed 20/10/2017 09/17 Q3
601168 CG Western Mining Co Ltd Confirmed 20/10/2017 09/17 Q3
600601 CG Founder Technology Group Corp Confirmed 21/10/2017 09/17 Q3
002407 CS Do-Fluoride Chemicals Co Ltd Tentative 22/10/2017 09/17 Q3
*Companies included in CITIC S&P 300 Index only ^ MM/YY QQSource: Bloomberg, CS
Publication of Economic DataDate/Time* Event Period Figures Actual Previous Revision
10/19/2017 10:00 GDP YoY 3Q 6.8% -- 6.9% --
10/19/2017 10:00 GDP SA QoQ 3Q 1.7% -- 1.7% --
10/19/2017 10:00 GDP YTD YoY 3Q 6.8% -- 6.9% --
10/19/2017 10:00 Retail Sales YoY Sep 10.1% -- 10.1% --
10/19/2017 10:00 Retail Sales YTD YoY Sep 10.3% -- 10.4% --
10/19/2017 10:00 Fixed Assets Ex Rural YTD YoY Sep 7.7% -- 7.8% --
10/19/2017 10:00 Industrial Production YoY Sep 6.4% -- 6.0% --
10/19/2017 10:00 Industrial Production YTD YoY Sep 6.7% -- 6.7% --
10/19/2017 FX Net Settlement - Clients CNY Sep -- -- -27.6b --
Source: Bloomberg, CS * MM/DD/YYYY
Major corporate results and economic data
Source: Bloomberg, CS
22 16 Oct 2017
Please refer to the attachment for detailed disclaimer and regulatory disclosures.
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(20)
(10)
0
10
20
30
40
30/9
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6
31/1
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16
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2017
E
China Export Trade USD YoY
China Import Trade USD YoY
(%)
6.46.56.66.76.86.97.07.17.27.37.4
30/9
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4
31/1
2/20
14
31/3
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5
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5
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15
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6
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16
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7
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7
2017
E
China GDP Constant Price YoY
China GDP Constant Price Cumulative YoY
(%)
(2)(1)012345678
31/8
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6
30/9
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6
31/1
0/20
16
30/1
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31/1
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2017
E
China CPI YoY
China PPI YoY
(%)
50.0
50.5
51.0
51.5
52.0
52.5
30/9
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31/1
0/20
16
30/1
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(Index)
GDP ►China’s GDP rose 6.9% YoY in 2Q17,
beating the 6.7% consensus forecast
and flat QoQ. Macro growth is still on a
reasonable pace, with increasingly clear
signs of stabilization and improvement.
The market expects full-year 2017E GDP
growth to be 6.7% YoY.
Import and Export ►China’s e xpor t s and impor t s both
accelerated in Sep 2017, with exports
rising 8.1% YoY and imports up 18.7%
YoY. Import growth again surpassed
expectations by far, while export growth
fel l shor t of consensus . The market
projects full-year 2017E export and import
will advance 7.2% and 13.0%, respectively.
◄ Manufacturing PMI
China’s manufactur ing PMI came to
52.4 for Sep 2017, up 0.7ppt MoM and
the h ighes t month ly reading s ince
May 2012. The factory sector has been
expanding steadily, showing a measure of
acceleration of late.
◄ CPI and PPI
In Aug 2017, China’s CPI advanced 1.8% YoY,
compared to 1.4% in the previous month;
PPI rose 6.3% YoY, relative to 5.5% in Jul. CPI
acceleration (up 0.4% YoY and 0.3% MoM
in growth rate) was sustained. The monthly
rebound in PPI points to China’s economic
resiliency. The market projects CPI and PPI
growth of 1.7% and 5.6% YoY, respectively,
for full-year 2017E.
Major economic indicators
Source: Bloomberg, CS
23 16 Oct 2017
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8101214161820222426
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2017
E
China Monthly Money Supply M1 YoY
China Monthly Money Supply M2 YoY
(%)
5.75.96.16.36.56.76.97.17.37.57.7
31/8
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31/1
0/20
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30/1
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Feb
2017
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2017
E
China Value Added of IndustryYoY Cumulative
China Value Added of IndustryYoY
(%)
0
300600
9001,200
1,5001,800
2,100
31/8
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6
30/9
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(Rmb bn)
9.49.69.8
10.010.210.410.610.811.0
31/8
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30/1
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2017
E
(YoY %)
Value Added of Industry ►Indust r ia l va lue -added f rom scale enterprises recorded actual growth of 6.0% YoY in Aug 2017, with the pace easing 0.4ppt MoM. Likely suppressed by environmental measures, supply-side reform and weather conditions (the average temperature in Aug 2017 was higher than in the year-ago period), industrial metrics are still trending south. But f rom a long- term perspect ive, upbeat fundamentals will return. Full-year 2017E industr ia l value -added will expand 6.5% YoY as per market consensus.
Monthly Supply M1 & M2 ►As of end-Aug, outstanding M2 tallied
Rmb164.52trn, up 8.9% YoY. The growth
rate was 0.3ppt lower MoM and 2.5ppts
lower YoY. Outstanding M1 totaled
Rmb51.81trn, rising 14% YoY, which was
slower by 1.3ppts MoM and 11.3ppts YoY.
The market projects M2 will expand 9.65%
YoY in 2017E.
◄ Retail Sales Value
Total retail value in Aug 2017 tallied
o v e r R m b3 . 03 t r n , n o m i n a l l y u p
10.1% YoY and 0.3ppt slower MoM.
Macro slowdown was the main drag.
However, given the steady tempo of the
economy thus far in 2H17, the decline
in retail sales was moderate. The market
expects full-year 2017E retail growth to
be around 10.5% YoY.
◄ CNY Monthly New Loan
New RMB loans in Aug 2017 came to
Rmb1.09trn, higher than the Rmb950bn
forecast. The monthly increase was
Rmb143.3bn more than that in the year-
ago period.
Major economic indicators
Analyst CertificationThe analysts primarily responsible for the preparation of all or part of the research report contained herein hereby certify that: (i) the views expressed in this research report accurately reflect the personal views of each such analyst about the subject securities and issuers; and (ii) no part of the analyst’s compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed in this research report.
Investment rating system
Rating standard for Investment RecommendationsInvestment ratings are divided into stock rating and sector rating (unless stated otherwise). Rating standard is based on the relative performance with market in 6 to 12 months from the report issuance date, i.e. Performance of company stock price (or sector index) over the 6-to-12-month period from report issuance day is benchmarked against the change in market representative index in the same period. CSI 300 Index will be the benchmark index for A-share market; the NEEQ Component Index (stocks subject to negotiated transfer) or the NEEQ Market Making Index (stocks subject to market making) will be the benchmark index for the NNEQ board; MSCI-China Index will be the benchmark index for Hong Kong market; and NASDAQ Composite Index or Standard & Poor’s 500 Index will be the benchmark indices for U.S. market.
Ratings Description
Stock ratings
BUY Increase relative to market representative index over 20%
OVERWEIGHT Increase relative to market representative index between 5% and 20%
HOLD Increase relative to market representative index between -10% and 5%
SELL Decrease relative to market representative index over 10%
Industry ratings
OUTPERFORM Increase relative to market representative index over10%
NEUTRAL Increase relative to market representative index between -10% and 10%
UNDERPERFORM Decrease relative to market representative index over 10%
Other DisclosuresThis research report has been prepared by CITIC Securities Company Limited (“CS”) or an affiliate thereof. CS, its subsidiaries, branches and affiliates are referred to herein as“ CITIC Securities”.
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