Morning Express

Morning Express
Today’s Focus
11 July 2011
Indices
Close
1d %
Ytd %
22,726
12,756
2,930
285
1,258
752
12,657
1,344
2,860
5,991
3,914
7,403
0.87
0.92
0.12
0.36
-0.07
-0.30
-0.49
-0.70
-0.45
-1.06
-1.67
-0.92
-1.34
0.50
-0.33
-6.36
-6.90
-8.83
9.33
6.85
7.80
1.54
2.86
7.07
Crude
Gold
Close
95.88
1,542.10
3m %
-14.05
5.40
Ytd %
1.75
8.54
Silver
Copper
JPY
GBP
EURO
36.69
9,661.00
80.67
1.60
1.42
-8.86
-2.17
4.87
-1.90
-1.54
18.66
0.64
0.56
2.71
6.19
3m
6m
0.26
0.01
0.01
3.03
-0.56
-0.31
HSI
H Shares
SH A
SH B
SZ A
SZ B
DJIA
S&P 500
Nasdaq
FTSE
CAC
DAX
Indicators
bps
change
HIBOR
US 10
yield
Hang Seng Index (1 year)
26,000
Strategy Report – Market tends to believe that the Chinese government will relax
its monetary policies in 3Q11. Compared to the average CPI growth of -0.6% in
June of the past 11 years, the latest CPI grew 0.3% on a monthly basis, reflecting
that the country still faces high inflationary pressure. Trade surplus in June also
grew beyond market expectation, bringing higher RMB appreciation pressure and
hedging pressure of the open market. In view of this, we believe the tightening
policies will stay in place in 3Q, so as to control inflation. The HSI could test above
25000pts in 2H given easing inflationary pressure and stable economic growth.
Meanwhile, Chinese banking sector observed severe plunges last week due to
market’s concern over a default in LGFV. The risks involved, in our opinion,
should be “liquidity risks” instead of “default risk”. The worst scenario would just
be a rollover of debts and the market has clearly exaggerated its impact on banks’
earnings. Investors should make rational judgment on market rumors.
China Macro – China’s June CPI grew 6.4% YoY, marking another record high of
the year. The figure came in line with our expectation but was slightly higher than
the market’s consensus of 6.2%. The surge in June CPI was mainly due to rising
food prices in off-seasons, indicating a rather heavy inflationary pressure.
Agricultural prices rose steadily in early July and if the trend extends to the rest of
the month, July CPI could also see an unusual increase after June. We estimate that
the July CPI could climb to around 6.6%. If pork price hike slows, CPI would
probably peak in July. Meanwhile, China’s June exports maintained a rather fast
growth while imports growth fell sharply. Trade surplus grew beyond market
expectation, which could act as a catalyst for the RMB appreciation.
25,000
24,000
23,000
22,000
21,000
20,000
19,000
18,000
17,000
08
/0
7/
20
10
08
/0
8/
20
10
08
/0
9/
20
10
08
/1
0/
20
10
08
/1
1/
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08
/1
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08
/0
1/
20
11
08
/0
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11
08
/0
3/
20
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08
/0
4/
20
11
08
/0
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08
/0
6/
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08
/0
7/
20
11
16,000
HS China Enterprise Index (1 year)
15,000
14,000
13,000
12,000
11,000
10,000
Petrochem Sector – International oil prices turned volatile over the past month.
BRENT oil fell to its lowest point in 4 months but soon staged a strong rebound.
WTI-BRENT spread remained at –US$20/barrel, offering arbitrage opportunities.
Given a global economic recovery and rising energy demand, we believe oil prices
would continue to climb. The recent fall in oil price temporarily alleviated refiner’s
operating pressure; petrochem sector still enjoys decent profit margin.
“Outperform” rating maintained for the sector. Among the 3 oil giants in China,
we assigned “Buy” rating for CNOOC Ltd and gave “LT-Buy” and “Neutral”
ratings to PetroChina and Sinopec, respectively. We also recommend China
Oilfield Services, SPC and China Sanjiang, all with “Buy” ratings.
20
11
11
20
11
20
11
20
11
20
11
8/
7/
8/
6/
8/
5/
8/
4/
8/
3/
0
11
20
01
20
/2
8/
2/
8/
1/
0
0
01
8/
12
10
01
/2
/2
8/
11
10
20
20
8/
9/
8/
10
8/
8/
8/
7/
20
10
9,000
Coal Sector – Domestic steam coal price stayed at high level with Qinhuangdao
steam coal price rising 15.3% YoY or 2.8% MoM. Spread between Qinhuangdao
and international steam coal prices remained high. China’s coal imports improved
sharply while exports volume fell further. Production of the 4 major downstream
industries continued to report YoY growth. The robust domestic demand brings
strong support for coal prices. We are bullish towards the future coal prices and
the earnings of listed coal producers. “Outperform” rating maintains. We prefer
Yanzhou Coal, Hidili Industry and Winsway, all assigned with “Buy” ratings.
Morning Express
11 July 2011
HSI Technical
22,726
22,811
23,228
55
4,471
HSI
50 d MA
200 d MA
14 d RSI
Short Sell (HK$ m)
Shanghai A-shares (1 year)
3,400
3,200
3,000
2,800
2,600
Auto Sector – China’s auto production and sales 1.4037m units and 1.4359m units
in June, up 3.83% MoM and 3.62% MoM or climbing 0.65% YoY and 1.40% YoY,
respectively. The June sales data improved slightly from the negative growth
reported in Apr and May. Passenger cars showed stronger performance than
commercial vehicles in 1H. Inventory stayed within reasonable range. Exports
remain as the industry highlight. We expect the auto sales would recover in 4Q
when peak season arrives. We project auto sales growth to be around 5-10% in
2011. Maintain “Market Perform” rating. Share prices are expected to rebound
after heavy corrections but the magnitude would be limited in the absence of
strong sales data.
2,400
8/
7/
20
10
8/
8/
20
10
8/
9/
20
10
8/
10
/2
01
0
8/
11
/2
01
0
8/
12
/2
01
0
8/
1/
20
11
8/
2/
20
11
8/
3/
20
11
8/
4/
20
11
8/
5/
20
11
8/
6/
20
11
8/
7/
20
11
2,200
Shenzhen A-shares (1 year)
1,500
1,400
1,300
1,200
1,100
1,000
900
8/
7/
20
10
8/
8/
20
10
8/
9/
20
10
8/
10
/2
01
0
8/
11
/2
01
0
8/
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/2
01
0
8/
1/
20
11
8/
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8/
3/
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8/
4/
20
11
8/
5/
20
11
8/
6/
20
11
8/
7/
20
11
800
Result Announcement This Week
Date
Company
Code
11/07/2011
15/07/2011
18/07/2011
25/07/2011
27/07/2011
28/07/2011
28/07/2011
29/07/2011
VITAL GROUP
LINMARK GROUP
PUBLIC FIN HOLD
CKLIFE SCIENCES
POWER ASSETS
CHINA GREEN
CKI HOLDINGS
CHINA HEALTH
1164
915
626
775
6
904
1038
673
1Q
Final
Interim
Interim
Interim
Final
Interim
Final
Engineering Machinery Sector – President Hu mentioned at the Central Water
Conservancy Working Conference last weekend that water conservancy should
be regarded as the priority in the country’s infrastructure projects. China
strives to change the lagging situation of water conservancy constructions in 510 years. From the No. 1 Document to the Central Water Conservancy Working
Conference, the policy support on the construction of water conservancy
facilities will drive the engineering machinery sector, which is mainly boosted
by FAI. FAI in the construction of water conservancy facilities currently
accounts for 9% of total FAI in China and the investment growth maintained at
around 25% in 1H11. We think the investment growth in water conservancy
should exceed 25% each year on average during the 12th Five-Year Plan Period.
Excavators, loaders, concrete trucks and other related engineering machineries
should benefit. We recommend listed engineering machinery companies
Lonking and Zoomlion.
Boshiwa International (1698.HK) – BI signed strategic co-operation agreement
with Takara Tomy, a leading toy company in Japan. This deal proves again that
BI’s distribution network is very attractive to international brands. The cooperation of Takara Tomy could enrich BI’s product portfolio instantly. Further indepth co-operation, new merchandises development and introduction of Kiddy
Land are future growth drivers. Maintain BUY recommendation and TP HK$6.63.
Angang Steel (347.HK) – The Company announced profit warning for its interim
results in 2011. Given rising raw material prices, the Company expected its net
profits in 1H11 to slump 92% YoY to RMB220bn, representing an EPS of RMB0.03,
much lower than the EPS of RMB0.38 reported in the same period last year. The
chance for a strong rebound in domestic steel products in 2H is thin, especially
when the demand for steel plates, the Company’s major steel products, is expected
to be weak. Together with the rising production costs brought by raw materials
price hikes, we believe it would be rather unlikely for the Company to see a strong
improvement in its earnings in 2H. We project that its FY11F/12F EPS to be
RMB0.08/RMB0.14, corresponding to FY11F/12F P/E of 90.4x/ 54.5x. Trim rating
to “Neutral” with TP of HK$9.2.
Download our reports from Bloomberg: BOCM <enter>
Page 2
Morning Express
11 July 2011
Belle Int’l (1880.HK) - Latest operation update recorded 20% SSSG for footwear
business & 5.5% for sportswear in 2Q11; number of footwear stores increased by
538 to 9153, and sportswear stores increased by 217 to 3988. The result beat
management guidance but broadly inline with our forecast. We maintain our
positive view on the group’s earning outlook giving its sustainable growth
prospect and strong execution capability, however, as the group’s stock price has
been moving very strongly during the past weeks, we revise down our rating to
HOLD, TP remain unchanged at $17.81, representing 30X FY11F PE.
Market View – The upward momentum in HSI should be sustainable but
perhaps slowly.
HK turned slightly stronger last Friday. HSI opened high amid rising external
markets and lingered around 22780pts in the morning session. The gain was
narrowed to 0.87% in the afternoon, with the index closing at 22726pts. The HSI
added 1.47% in the past week. Most of the stocks reported gains last week, but the
magnitude was limited. Support services, property and metals sectors led the
upswing but the increases were within 1%. Healthcare products, coal and hotel &
entertainment sectors underperformed, losing nearly 1%.
National Bureau of Statistics announced that China’s CPI grew 6.4% in June. The
figure, marking a record in nearly 3 years, came in line with our projection but was
slight higher than market’s consensus. The surging food prices continued to fuel
up inflation, contributing 4.26ppts to the increase in June CPI. CPI increased 0.3%
on a monthly basis, higher than the 0.1% growth reported in May. In particular,
pork price rose 11.4% MoM, which brought up the CPI growth by 0.36ppts.
Vegetable and fruit prices, on the other hand, continued to drop on a monthly
basis while non-food prices stayed flat, alleviating some of the inflationary
pressure. The CPI is expected to stay at high level in 2H11 but the inflationary
pressure should reduce given a fall in carryover effect expected in July.
Meanwhile, the government might introduce some administrative measures to
pork prices and pork supply would probably increase in 2H. The slipping CPI
would favour the HK equity market. CPI in 3Q might stand at around 5.2% but the
figure would contract to 4% in 4Q. We expect the CPI growth in 2011 would be
around 4.8%, stayed within Chinese Premier Wen Jiabao’s latest announced target.
Download our reports from Bloomberg: BOCM <enter>
Page 3
Morning Express
11 July 2011
PBoC Governor Zhou Xiaochuan said China’s monetary policies need to balance
growth and inflation. Unlike previous comments, Zhao emphasized that China
will tolerate some inflation, for it has been undertaking the transformation from a
central-plan to a market-oriented nation. He also remarked that money shortages
and financing difficulties for SMEs can hardly be solved by central bank's current
monetary policy. We believe the change in Chinese officials’ views reflected that
the inflationary pressure will ease in 2H and the tightening policies will also be
relaxed, with macro-economic measures coming at a slower and weaker pace in
2H and 2012. Zhao pointed out that “it will take some time for the inflation
curbing policies to show effect”. The comments will, again, help a valuation
recovery in HK market. The rebound could probably persist a little bit longer,
especially when the US$ stays weak and the Fed might introduce more stimulating
policies to boost its economic recovery.
China State Construction Int’l (3311.HK) announced its operations data in 1H11.
The company’s contracted sales grew 73.6% YoY to RMB19.34bn, representing
69.1% of its sales target of the year. In particular, infrastructure investment
(including affordable housing) business in PRC and construction business in
Macau outperformed. The backlog of its on-hand contracts meets its work in the
next two years. The strong performance is expected to give a boost to its share
price today. Angang Steel (347.HK), on the other hand, issued a profit warning
during weekend, expecting its net profit in 1H to see a decrease of 92% YoY to
RMB220m while the basic EPS would also plunge 92% to RMB0.03. The company
attributed the fall in net profit to rising raw materials and fuel prices which
substantially exceeds the increase in the price of steel products. Iron & steel
manufacturers might face pressure today.
US stocks tumbled after the Labor Department reported nonfarm payrolls rose
18,000 in June against a forecast of 100,000 increase. This gave a perfect excuse for
investors to take profit after the recent climb. This was not the first time ADP
employment figure diverge with change in nonfarm payrolls, these to figures often
move in different direction. ADP only reflects the employment situation amongst
the largest corporations. Also unemployment rate edged up slightly to 9.2%.
Fortunately a reading on sharp increase in consumer borrowing sparked a lateafternoon rally that helped to narrow losses. DJIA lost as many as 152 points
earlier in the session and in the end the index was down 62 points, or 0.5%, to
12657. We could foresee US economic data to remain directionless, meaning that
some will be good and others are bad. Stock market is very susceptible to
economic data implying DJIA will likely remain volatile in the foreseeable future
without real advancement.
Download our reports from Bloomberg: BOCM <enter>
Page 4
Morning Express
11 July 2011
News Reaction
MLR: China residential land sales dropped in 1H11. 130 cities in China registered
sales of 11,674 land sites between Jan and June, of which 3,492 land sites were used
for residential housing development, representing a decrease of 9% YoY,
according to the Ministry of Land and Resources (MLR). The sales premium in
these 130 cities of China reached 27%, a decrease of 4 ppts over the corresponding
period last year.
Beijing mulls investment cuts in seven emerging sectors. China may heavily cut
investments in seven new strategic industries, including wind power and highspeed rail, in a bid to reduce over-capacity and corruption. Sources said the
investment cut in high-speed rail is mainly related to the corruption case of the
former MOR Minister Liu Zhijun. Meanwhile, according to the 12th Five-Year Plan,
China will build seven wind-power bases with capacity in ten millions kW in
Western China, but the plan may need to be adjusted due to incomplete
consideration.
CSR (1766.HK) inter-city MUs export to Malaysia. CSR announced that its
subsidiary CSR Zhuzhou Electric Locomotive Co., Ltd. has produced selfdeveloped high-end inter-city multiple units. They will soon be transported to
Malaysia and serve as a main play on inter-city routes. It will export 228 multiple
units to Malaysia, China's largest multiple unit export in terms of number.
China Zhongwang (1333.HK): 18 sets of large-scale extrusion presses to
commence production in the next two years. Mr. Vincent Cheung, CFO of
Zhongwang said, "Our development plans and strategies will remain unchanged
despite the US anti-dumping and countervailing duties investigations. Our
capacity expansion plan has been ongoing as scheduled. A total of 18 sets of largescale extrusion presses of over 75MN will be installed at our manufacturing base
in the coming two years."
Chu Kong Pipe (1938.HK) receives 215,000 tons of new orders in 1H11. Chu
Kong Petroleum and Natural Gas Steel Pipe said the Group received additional
new orders of about 215,000 tons of steel pipes in the first half of 2011. The total
new orders as at the first half of year comprise 200,000 tons of LSAW steel pipes
and 15,000 tons of electric resistance welding (ERW) steel pipes. As at 30 June 2011,
the Group's undelivered orders-on-hand amounted to 355,000 tons of steel pipes,
which comprise of 310,000 tons of LSAW pipes and 44,000 tons of ERW pipes.
Download our reports from Bloomberg: BOCM <enter>
Page 5
Boshiwa International
(1698.HK)
Strategic co-operation with Takara Tomy
Company report
11 July 2011
Summary:
Event
Boshiwa joined hands with
Japan’s Takara Tomy
Special views
(1) BI will sell Takara Tomy’s
products. The co-operation
will enrich BI’s product
portfolio instantly.
Boshiwa International (“BI”) signed strategic co-operation agreement with
Takara Tomy. According to the agreement, (1) BI will sell Takara Tomy’s
products in its distribution network; both parties will (2) jointly develop and
manufacture merchandises suitable for children in China market; (3) have
thorough co-operation in content industry; (4) study the introduction of
Kiddy Land into China.
A Kiddy Land store in Shibuya-ku of Tokyo, Japan
(2) Both parties will have
more in-depth co-operations
in future
(3) This deal proves again that
BI’s distribution network is a
valuable asset.
Source: Google
(4) Maintain BUY
recommendation and TP of
HK$6.63
Takara Tomy is a leading toy, children’s merchandise and entertainment
company in Japan created from a merger in 2006. Tomy was established in
1924, while Takara was founded in 1955. Key products of Takara Tomy
include Tomica (東美卡), Licca doll (莉嘉娃娃), Pla Rail (火車世界), Nohohon
(搖頭娃). Takara Tomy also sells products related to many popular Japanese
comics. In China, Takara Tomy partnered with CCTV’s 北京輝煌動畫公司 to
launch the first Sino-Japan comic“三國演義”.
BI’s distribution network is a valuable asset. BI’s various distribution
channels have formed a comprehensive sales network for maximum customer
exposure. This deal proves again that BI’s distribution network is very
attractive to foreign brands.
Positive. The co-operation of Takara Tomy could enrich BI’s product portfolio
instantly. Further in-depth co-operation, new merchandises development and
introduction of Kiddy Land are future growth drivers. Maintain BUY
recommendation and TP HK$6.63.
Valuation Table
YE Dec (RMB m)
Albert Yip, CFA
[email protected]
Tel: (852) 2977 9205
Download our reports from
Bloomberg: BOCM〈enter〉
Revenue
Net profit
EPS (RMB)
Growth (%)
P/E (X)
Yield (%)
ROE (%)
P/B (X)
FY08
FY09
FY10
FY11F
FY12F
FY13F
326
64
0.042
347.4%
94.6
na
38.2%
33.1
630
121
0.081
90.5%
49.6
na
46.4%
17.6
1,408
251
0.152
88.4%
26.3
na
16.5%
2.9
2,421
462
0.223
46.3%
18.0
0.6%
15.4%
2.5
3,538
651
0.314
40.9%
12.8
0.8%
18.1%
2.1
4,681
838
0.404
28.6%
9.9
1.0%
20.4%
1.9
Source: the Company, BOCOM Int'l estimates
Download our reports from Bloomberg: BOCM <enter>
Page 6
Morning Express
11 July 2011
Economic Releases This Week
China
14-15 Jul
14-15 Jul
15-Jul
15-Jul
15-Jul
15-Jul
New Yuan Loans(CNY bn)
Money Supply - M2
Producer Price Index (YoY)
Industrial production(YoY)
Consumer Price Index (YoY)
Retail sales (YoY)
Survey
625.8
15.3%
6.9%
13.1%
6.2%
17.0%
Prior
551.6
15.1%
6.8%
13.3%
5.5%
16.9%
USA
12-Jul
13-Jul
13-Jul
14-Jul
14-Jul
14-Jul
15-Jul
15-Jul
15-Jul
Trade balance (US$ bn)
Import price index(MoM)
MBA mortgage applications
PPI (MoM)
PPI ex food & energy (MoM)
Initial jobless claims (k)
CPI (MoM)
CPI ex food & energy (MoM)
Industrial Production
-44.2
-0.5%
-0.2%
0.2%
-0.1%
0.2%
0.4%
-43.7
0.2%
-5.2%
0.2%
0.2%
0.2%
0.3%
0.1%
Source: Bloomberg
BOCOM Research Latest Reports
PICC P&C (23280.HK) - PICC Life listing to lift investment value by 5%
16 Jun 11
Coal Sector - High domestic coal prices boost imports
17 Jun 11
China Internet Sector - 3 Taos to cope with online shopping development
20 Jun 11
Petrochem Sector - International oil price sees consolidation
21 Jun 11
China Everbright Bank: H-share subscription price to be HK$3.48-HK$3.85
21 Jun 11
China Telecom Sector - Contributions from new 3G subscribers expand further
22 Jun 11
Tiangong Int'l (826.HK) - World's No.3 Severely Undervalued
22 Jun 11
Petrochem Sector - Lower import duty helps boost domestic oil supply
27 Jun 11
Chu Kong Pipe (1938.HK) - FY11 results to grow sharply on abundant orders
27 Jun 11
China Macro - Rate hike possible; June CPI forecast lifted to 6.4%
29 Jun 11
China South City (1668.HK) - Still have to wait for explosive growth
30 Jun 11
Neo-Neon (1868.HK) - Weak profitability in 1Q2011
30 Jun 11
China Retail Sector - Mass market brands benefit most from new Personal Income
4 Jul 11
Tax Law
China Macro - "Deinventory" process dragged June PMI
4 Jul 11
Skyworth Digital (751.HK) - Better-than-expected results on GM recovery
5 Jul 11
Internet Sector - Monthly update on online games data
6 Jul 11
Beijing Capital Land (2868.HK) - Lagging behind in sales performance
7 Jul 11
China Banking Sector - Current valuations reflect market's overreaction
7 Jul 11
China Banking Sector - Rate hike in line; impact on earnings slightly positive
7 Jul 11
Yuexiu Property (916.HK) - On the right track of sales recovery
8 Jul 11
Download our reports from Bloomberg: BOCM <enter>
Li Wenbing
He Wei, Anita Wang
Martina Ma; Connie Gu
He Wei, Anita Wang
Li Shanshan; Wan Li
Lizhiwu; Niki Sun
Lizhiwu; Niki Sun
He Wei
Luo Rongjin
Li Miaoxian
Toni Ho, CFA
Miles Xie
Albert
Yip,
CFA;
Helena Liu
Li Miaoxian
Miles Xie
Connie Gu
Toni Ho, CFA
Li Shanshan; Wan Li
Li Shanshan; Wan Li
Toni Ho, CFA
Page 7
Morning Express
11 July 2011
Hang Seng Index Constituents
Code
Price
Mkt Cap
5d
Ytd
Yield
P/B
(HK$)
(HK$ m)
% chg
% chg
Hi
Lo
09 A
10 F
11F
(%)
(X)
1 HK
116.40
269,602
2.3
-2.9
137.60
89.75
10.2
11.2
11.4
2.5
1.0
HANG LUNG PROPER
101 HK
31.80
142,204
-0.3
-12.5
40.50
28.90
16.1
29.1
21.3
2.0
1.3
CHINA SHENHUA-H
1088 HK
38.95
755,850
5.0
19.5
39.45
27.80
16.9
14.2
12.4
2.7
3.2
11 HK
124.10
237,260
-0.2
-2.9
134.40
104.50
15.9
14.1
12.2
4.1
3.4
CHINA RES LAND
1109 HK
15.38
82,866
9.2
8.3
17.64
11.90
12.8
15.0
12.0
2.2
1.8
COSCO PAC LTD
1199 HK
14.26
38,670
4.2
5.3
17.16
9.15
16.8
12.2
10.9
2.4
1.5
HENDERSON LAND D
12 HK
50.05
118,551
-0.2
-5.6
61.50
45.45
6.8
18.8
16.6
1.9
0.7
HUTCHISON WHAMPO
13 HK
85.20
363,239
1.4
6.5
97.45
47.50
18.1
17.6
14.2
2.4
1.2
CHINA COAL ENE-H
1898 HK
10.78
156,522
2.9
-11.2
15.08
9.54
16.0
13.0
10.7
1.5
1.6
BELLE INTERNATIO
1880 HK
17.04
143,719
3.9
30.7
17.46
10.55
34.9
28.1
23.3
1.0
7.0
IND & COMM BK-H
1398 HK
5.87
1,879,313
-0.7
1.4
6.77
5.44
10.2
8.5
7.3
4.3
2.1
CHINA MERCHANT
144 HK
30.25
74,398
0.7
-1.5
37.60
25.30
12.7
15.7
13.7
3.4
1.9
SUN HUNG KAI PRO
16 HK
118.30
304,036
4.4
-8.4
147.00
106.30
8.8
16.2
15.8
2.2
1.1
NEW WORLD DEV
17 HK
11.98
47,802
1.9
-17.9
17.98
11.40
4.4
8.5
7.9
2.6
0.5
SWIRE PACIFIC-A
19 HK
113.10
169,214
-1.0
-11.5
137.20
88.20
4.4
15.9
12.9
2.7
0.8
CLP HLDGS LTD
2 HK
67.70
162,896
-1.8
7.3
69.40
56.25
15.8
15.9
15.1
3.9
2.0
AIA GROUP LTD
1299 HK
27.95
336,630
3.7
27.9
28.50
19.68
16.3
18.8
16.1
0.0
2.2
HENGAN INTL
1044 HK
72.65
88,939
4.1
8.4
79.00
54.10
36.4
30.4
24.1
1.9
8.5
23 HK
32.25
66,391
0.9
-0.9
36.60
27.65
15.5
15.9
13.8
2.9
1.5
PING AN INSURA-H
2318 HK
82.30
536,938
2.4
-5.3
96.25
64.35
29.6
23.5
18.6
0.7
4.7
BOC HONG KONG HO
2388 HK
23.15
244,760
2.4
-12.5
29.40
17.50
15.1
13.4
11.9
3.7
2.1
ALUMINUM CORP-H
2600 HK
6.46
150,135
-1.5
-8.9
8.30
5.92
92.1
22.0
16.4
0.2
1.4
CHINA LIFE INS-H
2628 HK
27.50
677,598
3.4
-13.4
36.90
24.30
19.2
17.6
14.1
1.5
3.1
CITIC PACIFIC
267 HK
19.70
71,894
1.4
-2.5
24.60
14.38
8.1
11.2
7.9
2.2
1.1
CHINA RES ENTERP
291 HK
33.90
81,331
6.6
6.4
35.50
26.55
30.4
31.0
25.0
1.6
2.6
CATHAY PAC AIR
293 HK
18.22
71,675
1.1
-15.1
24.10
15.36
5.1
8.9
8.1
5.2
1.3
3 HK
18.36
145,054
3.8
10.2
18.46
15.46
26.0
25.2
23.0
1.9
3.9
ESPRIT HLDGS
330 HK
25.00
32,261
3.3
-32.4
49.80
22.80
8.7
9.2
8.2
4.5
1.7
BANK OF COMMUN-H
3328 HK
6.94
401,843
2.5
-2.5
8.66
6.46
8.7
7.7
6.6
1.8
1.6
CHINA PETROLEU-H
386 HK
7.93
813,942
1.3
6.6
8.90
5.96
8.0
7.5
7.0
3.3
1.4
HONG KONG EXCHNG
388 HK
167.50
180,724
2.7
-5.0
198.60
120.00
35.8
30.7
26.9
2.4
20.8
BANK OF CHINA-H
CHEUNG KONG
HANG SENG BK
BANK EAST ASIA
HONG KG CHINA GS
52-week
PE (X)
3988 HK
3.73
1,048,542
-1.6
-9.0
4.88
3.67
8.1
7.3
6.3
4.2
1.3
WHARF HLDG
4 HK
55.40
167,820
2.5
-4.5
61.87
38.30
4.4
19.6
17.2
1.7
1.0
LI & FUNG LTD
494 HK
14.82
120,057
-4.4
-34.3
25.98
14.12
26.5
20.7
16.5
2.0
4.2
HSBC HLDGS PLC
5 HK
78.25
1,394,213
1.6
-1.8
91.90
72.55
13.3
11.1
9.2
3.5
1.2
POWER ASSETS HOL
6 HK
58.50
124,854
-0.7
19.4
59.40
45.85
17.4
14.6
14.3
4.3
2.2
MTR CORP
66 HK
27.15
157,033
-1.6
-4.1
31.55
26.35
12.9
18.4
15.7
2.1
1.3
CHINA OVERSEAS
688 HK
17.46
142,692
4.7
21.4
17.90
12.64
11.6
12.2
10.6
1.9
2.6
TENCENT HOLDINGS
700 HK
212.60
391,104
0.7
25.9
230.80
134.20
39.9
28.4
22.0
0.3
14.8
CHINA UNICOM HON
762 HK
15.92
375,150
1.5
43.2
17.68
9.84
79.6
62.4
27.4
0.8
1.5
SINO LAND CO
83 HK
12.94
68,305
3.9
-11.0
18.90
11.54
7.9
16.7
13.5
2.8
0.9
CHINA RES POWER
836 HK
15.38
72,853
1.3
9.2
17.72
12.40
14.6
12.7
10.9
2.3
1.7
PETROCHINA CO-H
857 HK
11.78
2,369,044
3.5
15.9
12.50
8.38
12.8
10.9
10.5
4.0
1.9
CNOOC LTD
883 HK
18.50
826,380
1.9
0.3
21.30
12.10
12.6
10.0
9.9
2.5
3.2
CHINA CONST BA-H
939 HK
6.30
1,570,519
-2.3
-9.6
8.22
6.02
9.3
7.9
6.8
3.6
1.9
22,726.4
12,204,340
1.5
-1.3
24,988.6
20,002.0
11.9
12.3
10.8
3.3
1.7
HANG SENG INDEX
Source: Bloomberg
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Morning Express
11 July 2011
China Ent Index Constituents
Code
Price
Mkt Cap
5d
Ytd
Yield
P/B
(HK$)
(HK$ m)
% chg
% chg
Hi
52-week
Lo
09 A
PE (X)
10F
11 F
(%)
(X)
CHINA SHENHUA-H
1088 HK
38.95
755,849.80
5.0
19.5
39.45
27.80
16.9
14.2
12.4
2.7
3.2
SINOPHARM-H
1099 HK
25.45
61,146.82
-2.7
-6.1
32.80
25.00
39.9
29.5
22.8
0.7
4.1
CHINA SHIPPING-H
1138 HK
7.36
31,136.74
2.9
-29.0
13.40
6.71
12.1
12.4
9.6
1.9
0.9
YANZHOU COAL-H
1171 HK
30.60
187,511.90
3.4
28.8
32.95
15.02
13.5
11.8
10.7
2.9
3.3
CHINA RAIL CN-H
1186 HK
6.46
86,901.51
-0.8
-31.0
11.20
6.06
15.6
7.5
6.3
1.3
1.2
BYD CO LTD-H
1211 HK
25.40
82,280.30
1.0
-37.8
64.70
21.00
19.1
20.6
16.8
0.0
2.6
IND & COMM BK-H
1398 HK
5.87
1,879,313.00
-0.7
1.4
6.77
5.44
10.2
8.5
7.3
4.3
2.1
METALLURGICAL-H
1618 HK
3.04
85,544.43
0.0
-11.4
4.32
2.86
9.0
8.5
7.2
1.6
1.1
TSINGTAO BREW-H
168 HK
46.45
60,055.36
3.3
14.1
47.95
33.40
29.9
28.6
24.0
0.5
6.0
CHINA COM CONS-H
1800 HK
6.93
102,737.30
3.6
1.9
7.95
5.57
8.6
7.8
7.0
2.8
1.4
CHINA COAL ENE-H
1898 HK
10.78
156,521.60
2.9
-11.2
15.08
9.54
16.0
13.0
10.7
1.5
1.6
CHINA COSCO HO-H
1919 HK
5.93
91,126.58
-2.5
-28.0
9.93
5.69
7.3
30.2
15.9
1.3
1.1
CHINA MINSHENG-H
1988 HK
7.20
186,588.70
0.4
8.3
7.75
6.30
7.9
7.3
6.3
N/A
1.4
PING AN INSURA-H
2318 HK
82.30
536,937.60
2.4
-5.3
96.25
64.35
29.6
23.5
18.6
0.7
4.7
PICC PROPERTY &
2328 HK
13.94
155,316.70
5.3
23.8
14.16
7.52
24.8
18.5
15.5
0.0
5.2
ALUMINUM CORP-H
2600 HK
6.46
150,135.40
-1.5
-8.9
8.30
5.92
92.1
22.0
16.4
0.2
1.4
CHINA LIFE INS-H
2628 HK
27.50
677,597.80
3.4
-13.4
36.90
24.30
19.2
17.6
14.1
1.5
3.1
SHANGHAI ELECT-H
2727 HK
4.02
94,000.81
-2.2
-21.6
5.88
3.37
15.2
13.4
12.1
2.9
1.6
GUANGZHOU R&F -H
2777 HK
11.16
35,961.62
5.3
0.4
13.20
9.53
6.9
6.7
6.0
5.3
1.5
CHINA OILFIELD-H
2883 HK
14.76
84,693.06
4.2
-12.4
18.28
8.80
13.4
12.2
10.6
1.3
2.2
ZIJIN MINING-H
2899 HK
4.18
125,552.30
7.2
-13.0
5.53
2.91
15.8
11.9
10.8
1.6
3.5
CHINA NATL BDG-H
3323 HK
17.18
92,755.27
12.6
92.8
17.58
6.07
21.7
10.7
8.9
1.2
4.0
BANK OF COMMUN-H
3328 HK
6.94
401,843.30
2.5
-2.5
8.66
6.46
8.7
7.7
6.6
1.8
1.6
ANGANG STEEL-H
347 HK
8.85
60,530.30
3.9
-25.6
14.00
7.62
25.9
22.5
15.7
1.5
1.0
JIANGXI COPPER-H
358 HK
27.05
128,054.90
4.6
5.9
27.85
14.88
14.1
9.3
8.6
0.9
2.3
CHINA PETROLEU-H
386 HK
7.93
813,941.80
1.3
6.6
8.90
5.96
8.0
7.5
7.0
3.3
1.4
CHINA RAIL GR-H
390 HK
3.69
97,202.22
1.1
-34.2
6.66
3.39
8.7
7.3
6.3
1.2
1.0
CHINA MERCH BK-H
3968 HK
19.10
359,840.10
1.6
-2.7
23.90
17.72
12.9
10.3
8.6
2.3
2.6
BANK OF CHINA-H
3988 HK
3.73
1,048,542.00
-1.6
-9.0
4.88
3.67
8.1
7.3
6.3
4.2
1.3
DONGFENG MOTOR-H
489 HK
15.46
133,205.20
5.2
15.4
18.50
9.37
10.1
10.2
8.9
1.6
3.0
ZHEJIANG EXPRESS
576 HK
5.85
25,407.22
-0.2
-23.6
8.53
5.46
11.3
10.7
10.0
4.8
1.4
CHINA TELECOM-H
728 HK
4.95
400,615.30
-1.8
21.6
5.21
3.62
21.6
18.4
15.6
2.1
1.4
AIR CHINA LTD-H
753 HK
7.93
140,370.70
-1.6
-9.2
11.64
6.72
6.4
8.7
9.1
1.6
2.0
ZTE CORP-H
763 HK
28.20
97,217.98
0.0
9.5
31.08
18.46
24.0
20.4
16.7
1.1
3.5
PETROCHINA CO-H
857 HK
11.78
2,369,044.00
3.5
15.9
12.50
8.38
12.8
10.9
10.5
4.0
1.9
HUANENG POWER-H
902 HK
4.15
82,623.10
1.5
1.0
5.18
3.99
12.5
14.9
12.0
5.7
0.9
ANHUI CONCH-H
914 HK
39.80
182,913.10
9.3
63.8
40.20
15.33
28.4
14.2
11.8
1.0
5.1
CHINA CONST BA-H
939 HK
6.30
1,570,519.00
-2.3
-9.6
8.22
6.02
9.3
7.9
6.8
3.6
1.9
DATANG INTL PO-H
991 HK
2.72
77,949.36
3.0
-0.4
3.50
2.56
10.8
12.1
10.0
3.0
0.9
22,726
12,204,340
1.5
-1.3
24,989
20,002
11.9
12.3
10.8
3.3
1.7
HANG SENG INDEX
Source: Bloomberg
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11 July 2011
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