Morning Express 24 February 2015 Focus of the Day Indices Transportation Sector One Belt One Road Initiative Geoffrey CHENG, CFA [email protected] Not Rated President Xi Jinping had mentioned the Silk Road Economic Belt and the 21st Century Maritime Silk Road in 2013 during diplomatic visits. However, the world began to pay closer heed after China announced the establishment of the US$40bn Silk Road Fund in Nov 2014. The One Belt One Road initiative has economic and diplomatic implications for related countries. Infrastructure investment will likely be boosted in order to facilitate more international trade and cultural exchange. Given China’s leadership in the One Belt One Road initiative, we believe the Chinese companies in the construction machinery and infrastructure construction industries, infrastructure operators and, to a certain extent, the building materials industry could benefit from the initiative. We await more detailed implementation plan from the Chinese government to gauge the benefits for the listed companies in the future. Close HSI 24,837 H Shares 12,041 SH A 3,402 SH B 295 SZ A 1,683 SZ B 1,102 DJIA 18,117 S&P 500 2,110 Nasdaq 4,961 FTSE 6,912 CAC 4,862 DAX 11,131 Source: Bloomberg 1d % 0.02 -0.20 0.76 0.20 0.67 0.51 -0.13 -0.03 0.10 -0.04 0.65 0.73 Ytd % 5.22 0.47 0.37 1.60 13.86 7.12 1.65 2.47 4.75 5.27 13.80 13.52 Close 58.90 1,202.61 16.35 5,672.00 118.89 1.55 1.13 3m % -26.70 0.46 -0.78 -15.66 -0.52 -1.62 -8.90 Ytd % 2.74 1.50 4.11 -9.97 0.75 -0.80 -6.31 bps change HIBOR 0.39 US 10 yield 2.06 Source: Bloomberg 3m 0.01 -0.24 6m 0.02 -0.34 Indicators Brent Gold Silver Copper JPY GBP EURO HSI Technical HSI 50 d MA 200 d MA 14 d RSI Short Sell (HK$m) Source: Bloomberg Download our reports from Bloomberg: BOCM〈enter〉 24,837 24,040 23,783 61 5,283 Morning Express 24 February 2015 Market Review Hang Seng Index (1 year) Hong Kong stocks finished little changed on the first trading day of the Year of the Sheep. The Hang Seng Index closed at 24,836, nudging up 4 points only. Internet stocks led gains. Tencent (700.HK) rose 3.8% as the best blue-chip performer. Kingsoft (3888.HK) climbed 2.3%. V1 Group (82.HK) jumped 12%. Casino operators fell after data showed that mainland tourist visits to Macau only grew 6.9% during the Chinese New Year holidays. Galaxy Entertainment (27.HK) dropped 3.2% as the worst blue-chip performer, while Sands China (1928.HK) lost 2%. Oil companies retreated following the previous week’s rally spurred by merger rumors. CNOOC (883.HK) fell 2.8%. Sinopec (386.HK) dropped 1.1%. PetroChina (857.HK) shed 1%. 25,000 26,000 24,000 23,000 22,000 21,000 Source: Company data, Bloomberg HS China Enterprise Index (1 year) 13,000 12,000 US stocks finished flat on Monday. The S&P 500 closed little changed at 2,109.66. The DJIA shed 23.54 points, or 0.1%, to 18,116.90. European stocks rallied. The Stoxx Europe 600 gained 0.7% to 385.08. 11,000 10,000 9,000 8,000 News Reaction Number of Chinese mobile gamers reaches 250m, indicating maturer industry. By the end of 2014, the number of Chinese mobile gamers has reached 248m, Xinhua News Agency reported, quoting the data from CINIC. With the development of local games and relevant improving policies, it is expected that there is a bright future for China's game industry. The number of Chinese online gamers was 366m by the end of 2014 and its proportion in the total internet users rose from 54.7% in 2013 to 56.4%. Source: Company data, Bloomberg Shanghai A-shares (1 year) 4,000 3,500 3,000 2,500 2,000 Tencent (700.HK) intends to add investment in Dazhong Dianping. Tencent is interested in increase its investment in Dazhong Dianping (Mainland version of Open Rice) with a financing amount of US$800m (equivalent to approximately HK$6.24bn), Wall Street Journal reported, citing people with the knowledge of the matter. Kaisa Group (1638.HK) warns of substantial decline in 2014 net profit. Kaisa Group issued a profit warning, expecting its net profit for the year of 2014 to drop significantly as compared to the year of 2013. Given the time constraints when issuing the above announcement, the company emphasized that such profit warning does not meet the standard required by Rule 10 of the Takeovers Code. Prada (1913.HK) sales revenue down 1% in financial year ended Jan 2015. Prada released the preliminary sales figure for the year ended 31 Jan 2015. The group’s sales decreased 1% year-on-year to EUR3.552bn. Lenovo Group (992.HK) releases Superfish uninstallation tool. According to foreign media, Lenovo Group apologized to its users for pre-installation of Superfish advertisement app. The company said in a statement that it will help users solve the problem as soon as possible and will take two new measures for auto-delete the app. Download our reports from Bloomberg: BOCM〈enter〉 Source: Company data, Bloomberg Shenzhen A-shares (1 year) 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 800 Source: Company data, Bloomberg Morning Express 24 February 2015 Economic releases for this week - USA Date Time 23-Feb 25-Feb 26-Feb 26-Feb 26-Feb 26-Feb Source: Bloomberg Event Existing Home sales (m) MBA mortgage applications CPI (MoM) CPI ex food & energy (MoM) Durable goods order Initial jobless claims (k) Economic releases for this week - China Survey 4.95 -0.6% 0.1% 1.6% 290.0 Prior 5.04 -13.2% -0.4% 0.0% -3.4% 283.0 Date Time 25-Feb 1-Mar Event HSBC Manufacturing PMI Manufacturing PMI Survey 49.5 - Prior 49.7 49.8 Source: Bloomberg BOCOM Research Latest Reports Data 23 Feb 2015 23 Feb 2015 18 Feb 2015 18 Feb 2015 17 Feb 2015 16 Feb 2015 16 Feb 2015 Report Prada (1913.HK) - 4Q revenue in line; margin pressure to linger Healthcare Sector - Outsourcing trend on the rise Vipshop (VIPS.US) - Upgrade to Buy on visible high-growth story Transportation Sector - One Belt One Road Initiative Container Shipping Sector - Weekly container shipping commentary Neptune Orient Lines (NOL SP) - FY14 results review - below market expectation again 16 Feb 2015 13 Feb 2015 13 Feb 2015 13 Feb 2015 13 Feb 2015 13 Feb 2015 13 Feb 2015 12 Feb 2015 Property Sector - Margin comes before volume Transportation Sector - Weekly transportation news wrap Qihoo 360 (QIHU.US) - 4Q results preview: solid top-line with higher spending; cut TP and maintain Buy Baidu (BIDU.US) - Steady top-line growth in 4Q14; another investment year for O2O China Resources Land (1109 HK) -- Back to fundamentals Sino Land (83. HK) - 1HFY15 results review Parkson (3368.HK) - Disappointing FY14 results; cautious on FY15E growth outlook; downgrade to Sell Anta (2020.HK) – Better FY14; a good start for FY15E; well geared to benefit from China’s accelerating sportswear consumption trend Netease (NTES.US) - 4Q top-line beat on fast-growing game and eCommerce revenue SMIC (981.HK) – 4Q14 results beat; better-than-seasonality first quarter guidance Energy Sector – Bocom Energy Weekly Sohu (SOHU.US) –Half water, half flame; 4Q missed, maintain Neutral HK Property Sector – HK property results preview 11 Feb 2015 11 Feb 2015 11 Feb 2015 11 Feb 2015 11 Feb 2015 Summer Breeze「夏天小语」- Tissue promotion could intensify in 2015 Source: Company data, BOCOM International Download our reports from Bloomberg: BOCM〈enter〉 Analyst Phoebe Wong Milo Liu Phoebe Wong Geoffrey Cheng, CFA, Jovi Li, Fay Zhou Geoffrey Cheng, CFA Geoffrey Cheng, CFA Summer Wang Alfred Lau, CFA, FRM, Luella Guo Geoffrey Cheng, CFA, Fay Zhou Ma Yuan (Martina), Ph.D, Gu Xinyu (Connie), CPA Ma Yuan (Martina), Ph.D, Gu Xinyu (Connie), CPA Alfred Lau, CFA, FRM, Luella Guo Alfred Lau, CFA, FRM Anita Chu Phoebe Wong Ma Yuan (Martina), Ph.D, Gu Xinyu (Connie), CPA Miles XIE Fei Wu, Tony Liu Ma Yuan (Martina), Ph.D, Gu Xinyu (Connie), CPA Alfred Lau, CFA, FRM Morning Express 24 February 2015 Hang Seng Index Constituents Company name Cheung Kong Hang Lung Proper Hengan Intl China Shenhua-H Hang Seng Bk China Res Land Cosco Pac Ltd Henderson Land D Aia Group Ltd Hutchison Whampo Kunlun Energy Co Ind & Comm Bk-H China Merchant Want Want China Sun Hung Kai Pro New World Dev Belle Internatio China Coal Ene-H Swire Pacific-A Sands China Ltd Clp Hldgs Ltd Bank East Asia Ping An Insura-H Boc Hong Kong Ho China Life Ins-H Citic Pacific China Res Enterp Cathay Pac Air Hong Kg China Gs Tingyi Hldg Co Esprit Hldgs Bank Of Commun-H China Petroleu-H Hong Kong Exchng Bank Of China-H Wharf Hldg Li & Fung Ltd Hsbc Hldgs Plc Power Assets Hol Mtr Corp China Overseas Tencent Holdings China Unicom Hon Sino Land Co China Res Power Petrochina Co-H Cnooc Ltd China Const Ba-H China Mobile Lenovo Group Ltd Hang Seng Index BBG code 1 HK 101 HK 1044 HK 1088 HK 11 HK 1109 HK 1199 HK 12 HK 1299 HK 13 HK 135 HK 1398 HK 144 HK 151 HK 16 HK 17 HK 1880 HK 1898 HK 19 HK 1928 HK 2 HK 23 HK 2318 HK 2388 HK 2628 HK 267 HK 291 HK 293 HK 3 HK 322 HK 330 HK 3328 HK 386 HK 388 HK 3988 HK 4 HK 494 HK 5 HK 6 HK 66 HK 688 HK 700 HK 762 HK 83 HK 836 HK 857 HK 883 HK 939 HK 941 HK 992 HK Share price (HK$) 152.40 22.15 88.90 19.86 142.70 20.45 11.32 55.00 44.55 105.00 7.72 5.70 29.15 9.01 123.90 9.26 8.64 4.10 106.10 38.95 68.05 31.90 85.30 27.05 32.30 13.40 16.44 17.04 17.36 19.16 8.76 6.65 6.45 177.60 4.41 60.45 7.73 72.00 78.75 35.95 23.50 134.80 13.14 12.62 20.10 8.89 11.06 6.45 104.80 12.00 Mkt cap (HK$m) 352,983 99,350 108,849 443,531 272,820 133,555 33,286 165,019 536,610 447,654 62,319 1,995,738 74,714 118,881 350,162 82,353 72,872 86,627 154,668 314,240 171,925 74,865 791,647 285,994 1,230,797 333,705 39,807 67,033 182,490 107,374 17,025 529,706 862,440 207,492 1,411,492 183,226 64,626 1,383,793 168,073 209,566 192,088 1,263,510 314,663 76,528 96,427 2,412,129 493,801 1,617,306 2,144,625 133,304 5d chg (%) 2.3 1.4 -0.3 -3.4 2.1 4.2 0.0 1.9 1.7 1.8 2.1 2.2 -0.3 2.0 0.5 0.8 2.6 -0.5 1.9 4.0 1.1 -1.4 2.8 -0.2 2.7 3.7 2.6 -0.4 -0.1 1.2 3.5 2.3 5.2 0.9 1.6 2.5 6.8 1.7 -0.2 3.5 2.0 4.0 1.4 0.8 1.2 4.1 3.2 1.7 -1.4 -2.1 Ytd chg (%) 17.0 1.8 9.7 -13.5 10.4 0.0 2.7 1.3 3.2 17.6 5.3 0.7 11.7 -11.8 4.7 3.8 -0.9 -15.6 5.0 2.1 1.2 2.1 7.8 4.2 6.1 1.4 1.2 0.8 -2.3 8.1 -5.6 -8.1 3.2 3.4 0.9 7.9 6.5 -2.7 4.7 13.1 2.0 19.8 26.3 0.8 0.5 3.4 5.9 1.3 15.8 17.6 24,836.8 15,485,135 1.7 5.2 Source: Bloomberg Download our reports from Bloomberg: BOCM〈enter〉 –––– 52-week –––– Hi Lo (HK$) (HK$) 152.90 111.54 26.45 19.80 94.35 74.05 24.40 19.12 148.40 118.10 23.60 13.62 11.92 9.71 57.20 36.82 46.45 34.90 108.50 85.90 14.02 6.88 5.90 4.33 29.70 22.75 13.10 8.38 129.40 90.35 10.48 7.15 10.00 7.00 5.44 3.72 108.00 83.50 68.00 34.50 69.65 56.00 34.45 29.10 88.70 55.60 27.95 21.50 32.80 19.72 16.88 10.60 24.55 15.12 18.30 13.56 18.90 14.46 23.25 16.02 15.24 8.10 7.36 4.53 8.23 5.90 189.00 112.80 4.57 3.03 63.90 46.35 10.70 7.06 84.40 69.75 82.80 62.20 36.00 27.10 26.70 17.52 138.00 93.00 14.22 9.03 14.16 10.40 24.90 17.56 11.70 7.54 15.88 9.72 6.62 4.89 108.50 63.65 12.70 7.62 25,363.0 21,137.6 –––––––––– PE ––––––––––– 2014A 2015E 2016E (X) (X) (X) 8.2 9.9 10.5 8.5 15.3 16.0 30.1 28.9 23.8 7.4 8.3 8.6 18.0 14.5 13.4 7.8 10.6 9.1 14.5 12.9 11.5 9.2 17.7 17.3 28.1 21.5 19.2 9.5 13.6 13.2 9.8 10.3 11.0 5.8 5.8 5.6 16.9 17.2 15.7 22.0 23.2 20.0 9.9 15.9 14.7 7.0 11.2 10.2 N/A 13.0 12.5 31.8 54.2 38.4 12.1 15.8 13.9 15.9 17.2 15.4 19.1 16.1 15.9 11.1 12.4 11.5 17.2 14.2 13.3 12.4 11.7 10.6 27.4 20.7 17.7 9.5 7.6 6.1 21.6 127.4 54.8 22.8 19.4 11.0 26.3 25.1 23.1 33.2 30.9 25.2 80.2 80.4 36.2 6.2 6.1 5.9 8.9 10.5 15.0 44.2 40.2 30.0 5.9 6.0 5.6 7.7 15.8 13.8 9.9 17.5 14.9 13.5 10.3 9.5 2.7 19.0 18.6 14.1 19.3 20.1 7.7 8.5 7.3 45.8 42.6 31.9 20.1 19.4 16.8 9.9 14.8 14.2 8.3 8.0 7.5 10.0 11.6 19.0 7.2 7.6 17.1 5.7 5.6 5.4 14.6 15.6 15.1 18.4 18.4 14.6 10.5 11.6 10.5 Yield P/B (%) 2.3 3.4 2.1 5.7 3.9 2.2 2.7 1.8 1.0 2.2 3.0 N/A 2.6 3.0 2.7 4.5 N/A 2.4 3.4 2.5 3.8 3.5 1.0 3.7 1.2 2.0 1.5 1.5 1.9 1.5 0.8 N/A 4.6 2.0 5.5 2.9 6.1 5.3 3.3 2.6 2.1 0.2 1.5 4.0 3.7 4.4 5.1 5.8 2.9 2.0 (X) 0.9 0.8 6.6 1.1 2.5 1.4 0.9 0.6 2.5 1.1 1.2 1.1 1.1 8.1 0.8 0.5 2.3 0.5 0.7 6.3 1.9 1.1 2.6 1.7 3.1 0.6 0.8 1.1 3.6 4.5 1.0 0.9 1.0 10.1 1.0 0.6 1.7 0.9 1.4 1.3 1.6 13.6 1.1 0.7 1.4 1.1 1.1 1.1 2.1 4.1 3.4 1.4 Morning Express 24 February 2015 China Ent Index Constituents Company name Shandong Weig-H China Shenhua-H Sinopharm-H China Shipping-H Zoomlion Heavy-H Yanzhou Coal-H Agricultural-H New China Life-H Ind & Comm Bk-H Tsingtao Brew-H China Com Cons-H China Coal Ene-H China Minsheng-H Guangzhou Auto-H Ping An Insura-H Picc Property & Great Wall Mot-H Weichai Power-H Aluminum Corp-H China Pacific-H China Life Ins-H China Oilfield-H Zijin Mining-H China Natl Bdg-H Bank Of Commun-H Jiangxi Copper-H China Petroleu-H China Rail Gr-H China Merch Bk-H Bank Of China-H Dongfeng Motor-H Citic Securiti-H Haitong Securi-H China Telecom-H Air China Ltd-H Petrochina Co-H Huaneng Power-H Anhui Conch-H China Longyuan-H China Const Ba-H China Citic Bk-H Hang Seng China Ent Indx BBG code Share price (HK$) Mkt cap (HK$m) 5d chg (%) Ytd chg (%) (X) (X) 1066 HK 1088 HK 1099 HK 1138 HK 1157 HK 1171 HK 1288 HK 1336 HK 1398 HK 168 HK 1800 HK 1898 HK 1988 HK 2238 HK 2318 HK 2328 HK 2333 HK 2338 HK 2600 HK 2601 HK 2628 HK 2883 HK 2899 HK 3323 HK 3328 HK 358 HK 386 HK 390 HK 3968 HK 3988 HK 489 HK 6030 HK 6837 HK 728 HK 753 HK 857 HK 902 HK 914 HK 916 HK 939 HK 998 HK 6.58 19.86 27.75 5.44 4.77 6.33 3.81 44.65 5.70 49.00 9.00 4.10 9.20 7.45 85.30 15.78 49.50 31.80 3.62 38.85 32.30 12.20 2.27 7.53 6.65 13.00 6.45 6.02 17.70 4.41 11.76 26.90 18.18 4.98 6.52 8.89 9.44 26.15 8.15 6.45 5.83 29,454.53 443,530.63 76,786.89 33,172.47 54,134.14 59,558.77 1,323,970.46 182,289.69 1,995,738.17 66,587.96 214,636.95 86,626.71 375,642.55 60,983.62 791,646.69 233,993.91 178,424.31 65,930.41 76,524.20 379,167.43 1,230,796.93 90,886.18 81,650.32 40,654.67 529,706.43 63,376.49 862,439.83 202,294.80 452,658.96 1,411,491.58 101,325.57 387,669.19 245,067.30 403,043.22 111,641.35 2,412,129.22 134,522.97 134,510.85 65,496.57 1,617,306.48 353,794.85 6.5 -3.4 3.5 6.5 -0.6 0.0 -0.3 0.0 2.2 -3.0 5.1 -0.5 1.8 2.6 2.8 3.7 6.1 2.9 2.5 1.8 2.7 -2.2 -1.3 0.9 2.3 1.6 5.2 2.7 -1.6 1.6 -0.2 5.7 2.8 0.2 -2.5 4.1 1.0 -0.4 -0.4 1.7 1.6 5.1 -13.5 1.1 2.3 -19.3 -3.7 -2.8 14.0 0.7 -6.8 -3.5 -15.6 -9.8 5.5 7.8 4.6 12.2 -2.8 0.8 -1.4 6.1 -9.4 3.2 -0.1 -8.1 -2.3 3.2 -5.6 -9.0 0.9 7.1 -7.9 -6.9 9.7 4.0 3.4 -9.9 -10.0 1.0 1.3 -6.3 10.0 24.4 34.5 6.3 6.4 7.3 4.1 45.3 5.9 64.0 10.2 5.4 10.7 9.9 88.7 16.2 50.0 34.9 4.3 42.0 32.8 23.4 2.7 8.4 7.4 15.2 8.2 6.7 20.0 4.6 15.2 34.0 23.2 5.2 7.5 11.7 11.6 35.7 9.8 6.6 6.3 5.7 19.1 19.7 4.0 3.5 4.9 3.0 21.1 4.3 49.0 4.9 3.7 5.9 6.6 55.6 9.4 26.1 25.8 2.5 23.6 19.7 11.7 1.6 6.7 4.5 11.6 5.9 3.0 12.1 3.0 9.6 13.7 9.5 3.1 4.2 7.5 6.1 24.0 7.1 4.9 3.9 77.6 7.4 22.4 N/A 16.0 6.8 5.6 18.8 5.8 26.9 9.2 31.8 5.6 12.3 17.2 16.3 15.0 9.8 N/A 26.6 27.4 5.7 18.7 5.3 6.2 10.2 8.9 10.4 6.2 5.9 6.1 30.1 33.3 17.5 24.6 10.0 9.3 9.2 27.1 5.7 5.4 23.9 8.3 20.3 47.2 19.0 15.7 5.4 14.5 5.8 26.6 8.6 54.2 5.4 11.3 14.2 13.1 15.0 10.5 N/A 22.7 20.7 6.1 15.6 5.7 6.1 12.4 10.5 9.9 6.2 6.0 6.5 25.4 19.9 17.8 19.5 11.6 8.7 9.6 21.4 5.6 5.4 12,041 4,928,384 2.2 0.5 12,400.4 9,159.8 8.5 8.3 7.4 Source: Bloomberg Download our reports from Bloomberg: BOCM〈enter〉 –––– 52-week –––– Hi Lo (HK$) (HK$) ––––––––––– PE ––––––––––– 2014A 2015E 2016E Yield P/B (X) (%) (X) 20.0 8.6 17.3 13.8 14.4 20.3 5.1 13.6 5.6 23.9 7.9 38.4 5.1 8.9 13.3 12.3 11.2 10.9 N/A 19.2 17.7 8.7 15.6 5.4 5.9 14.1 15.0 8.8 5.7 5.6 6.1 20.5 16.1 15.9 10.3 19.0 8.2 9.0 14.9 5.4 5.1 1.2 5.7 1.2 0.0 3.9 0.4 N/A 0.4 N/A N/A 2.6 2.4 2.1 3.0 1.0 1.7 2.1 1.0 N/A 1.3 1.2 4.4 N/A 2.6 N/A 4.8 4.6 1.4 4.3 5.5 1.9 N/A 0.8 2.4 0.9 4.4 5.0 1.7 0.7 5.8 N/A 2.5 1.1 2.6 0.7 0.7 0.6 1.0 2.6 1.1 3.4 1.2 0.5 1.1 1.1 2.6 2.7 4.1 1.6 1.0 2.7 3.1 1.1 1.5 0.9 0.9 0.8 1.0 1.2 1.3 1.0 1.2 2.6 2.2 1.1 1.3 1.1 1.7 1.9 1.7 1.1 0.9 3.8 1.3 Morning Express 24 February 2015 BOCOM International 11/F, Man Yee Building, 68 Des Voeux Road, Central, Hong Kong Main: + 852 3710 3328 Fax: + 852 3798 0133 Rating System Company Rating www.bocomgroup.com Sector Rating Buy: Expect more than 20% upside in 12 months LT Buy: Expect more than 20% upside but longer than 12 months Neutral: Expect low volatility Sell: Expect more than 20% downside in 12 months Outperform (“OP”): Expect more than 10% upside in 12 months Market perform (“MP”): Expect low volatility Underperform (“UP”): Expect more than 10% downside in 12 months Research Team Head of Research @bocomgroup.com Raymond CHENG, CFA, CPA, CA (852) 2977 9393 @bocomgroup.com raymond.cheng Strategy Economics Hao HONG, CFA Miaoxian LI (852) 2977 9384 hao.hong (852) 2977 9212 yangqingli Fei WU (852) 2977 9392 fei.wu Shanshan LI, CFA (86) 10 8800 9788 - 8058 lishanshan Tony LIU (852) 2977 9390 xutong.liu Li WAN, CFA (86) 10 8800 9788 - 8051 Wanli Banks/Network Financials Qingli YANG miaoxian.li Oil & Gas/ Gas Utilities Consumer Discretionary Property Phoebe WONG (852) 2977 9391 phoebe.wong Anita CHU (852) 2977 9205 anita.chu Summer WANG (852) 2977 9221 summer.wang Shawn WU (852) 2977 9386 shawn.wu (852) 2977 9387 milo.liu Consumer Staples Alfred LAU, CFA, FRM (852) 2977 9235 alfred.lau Luella GUO (852) 2977 9211 luella.guo (86) 21 6065 3606 louis.sun (852) 2977 9209 lizhiwu (852) 2977 9216 miles.xie Geoffrey CHENG, CFA (852) 2977 9380 geoffrey.cheng Fay ZHOU (852) 2977 9381 fay.zhou (86) 21 6065 3675 wei.yao Renewable Energy Healthcare Louis SUN Telecom & Small/ Mid-Caps Milo LIU Insurance & Brokerage Zhiwu LI Technology Jerry LI (852) 2977 9389 liwenbing Jennifer ZHANG (852) 2977 9250 yufan.zhang Yuan MA, PhD (86) 10 8800 9788 - 8039 yuan.ma Connie GU, CPA (86) 10 8800 9788 - 8045 conniegu Internet Miles XIE Transportation & Industrial Metals & Mining Jovi LI (86) 10 8800 9788 - 8043 Automobile (852) 2977 9243 jovi.li Download our reports from Bloomberg: BOCM〈enter〉 Wei YAO Morning Express 24 February 2015 Analyst Certification The authors of this report, hereby declare that: (i) all of the views expressed in this report accurately reflect their personal views about any and all of the subject securities or issuers; and (ii) no part of any of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report; (iii) no insider information/ non-public price-sensitive information in relation to the subject securities or issuers which may influence the recommendations were being received by the authors. The authors of this report further confirm that (i) neither they nor their respective associates (as defined in the Code of Conduct issued by the Hong Kong Securities and Futures Commission) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to the date of issue of the report; (ii)) neither they nor their respective associates serve as an officer of any of the Hong Kong listed companies covered in this report; and (iii) neither they nor their respective associates have any financial interests in the stock(s) covered in this report. Disclosure of relevant business relationships BOCOM International Securities Limited, and/or its associated companies, has investment banking relationship with Bank of Communications, Harbin Bank Co., Ltd., Azure Orbit International Finance Limited, Hanhua Financial Holding Co., Ltd., Central China Securities Company Limited, China New City Commercial Development Limited, China Shengmu Organic Milk Limited, Broad Greenstate International Company Limited, China National Culture Group Limited, Sichuan Development Holding Co. Ltd., Austar Lifesciences Limited and BAIC Motor Corporation Limited within the preceding 12 months. BOCOM International Holdings Company Limited currently holds more than 1% of the equity securities of Shanghai Fosun Pharmaceuticals Group Co. Ltd. BOCOM International Securities Limited currently holds more than 1% of the equity securities of Sanmenxia Tianyuan Aluminum Company Limited. 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