CITIC-CSI Equity Daily

CSI RESEARCH – EQUITYBrilliance China
Automotive (1114)
57 11.40 9.00 (21.1) Buy 19.6 15.5 13.2 0.0 5.2 0.9 Rapid growth in BMW Brilliance sales
China Zhengtong Auto
Services (1728)
12 5.22 7.10 36.0 OW 11.4 8.6 7.0 0.2 1.4 0.4 Focus on luxury brands; shift to "intensive farming"
Dongfeng Motor (489) 32 11.26 11.00 (2.3) OW 7.1 7.3 6.9 2.1 1.4 8.9
In-line 1H12 results; stable operation expected for full
year
Geely Automobile (175) 34 4.10 2.70 (34.1) Hold 14.7 14.1 13.5 0.9 2.1 3.3 An Internationalized Chinese local brand auto maker
Great Wall Motor (2333) 43 41.65 50.00 20.0 Buy 17.6 11.9 8.9 2.5 4.6 0.4 Still on growth track
MINTH Group (425) 16 14.56 13.10 (10.0) OW 14.7 13.4 12.2 3.0 1.8 1.5
High-end customers and rapidly growing overseas
business
Tianneng Power (819) 3 3.10 5.56 79.4 OW 3.9 3.1 2.6 7.8 0.9 0.2 1H12 results beat our expectations
Weichai Power (2338) 15 31.70 38.00 19.9 Buy 16.7 12.8 10.7 2.7 2.0 0.7 Kion IPO prompts re-rating
Yongda Automobile
(3669)
11 7.57 9.90 30.8 OW 12.4 9.0 6.9 3.3 2.4 0.4 A luxury car dealer advantaged in management
Zhongsheng Group
(881)
23 11.90 9.30 (21.8) Hold 24.7 15.1 10.5 1.2 2.5 0.5
Stable operation, downward pressures on Japanese
brands
Bank
BEA (23) 71 31.40 30.10 (4.1) Hold 11.5 12.2 11.1 2.5 1.2 5.3 China NPLs as short-term drag
BoC HK (2388) 263 24.85 29.65 19.3 Buy 12.6 11.7 10.4 5.4 1.7 1.3 Most fundamentals are in good shape
CHB (1111) 13 28.95 33.90 17.1 Buy 23.2 26.1 24.3 1.5 1.7 NA
Non-bank mainland conglomerate could be potential
buyer
DSB (2356) 14 11.38 14.00 23.0 Buy 9.9 8.4 7.3 3.5 0.9 0.6
Strong core revenue growth albeit weakening asset
quality
DSF (440) 11 37.50 44.50 18.7 OW 8.9 8.4 7.6 3.5 0.7 1.1 Banking business to dominate in the near term
HSB (11) 241 125.90 117.40 (6.8) Hold 12.5 9.9 13.5 4.2 2.6 NA Limited short-term catalysts to boost earnings
HSBC (5) 1599 85.70 97.00 13.2 OW 14.8 11.2 9.7 5.3 1.2 0.6 A decline in underlying profit in 2Q13
SCB (2888) 450 185.70 189.25 1.9 Hold 11.9 12.1 9.7 3.8 1.3 1.1 Mixed picture in fundamentals
WHB (302) 26 83.50 75.45 (9.6) Hold 13.9 13.8 12.8 2.9 1.3 3.3 A mixed picture in fundamentals for 2013E
Bank (China)
Bank of China (3988) 299 3.58 4.38 22.3 OW 5.6 5.0 4.7 7.3 0.9 0.6 Further NIM growth and stable asset quality
Minsheng Bank (1988) 55 9.56 12.00 25.5 Buy 5.6 4.9 4.3 4.5 1.3 0.4 Stable operation with prudent provision
Basic Chemicals Sector
China BlueChemical
(3983)
8 4.38 6.50 48.4 Hold 6.4 6.0 5.4 0.0 1.3 0.7
A Leading Fertilizer Enterprise Heading For a Full
Integration
Dongyue Group (189) 8 3.81 4.95 29.9 Hold 8.4 7.5 6.5 1.3 1.4 0.6
A leader in the fluorochemical industry with distinct
edges but business climate at a trough
Capital Goods
Lonking (3339) 8 1.81 2.49 37.6 OW 13.0 7.1 5.5 2.1 1.0 0.2 A leading loader maker waiting for climate recovery
Sany International (631) 8 2.57 5.30 106.2 Buy 7.0 5.6 4.3 2.9 1.1 0.3 From roadheader leader to coal mining machinery giant
Sinopec Engineering
(Group) (2386)
14 9.55 14.40 50.8 Buy 7.0 8.5 7.2 3.6 1.7 NA
Stable 1H13 earnings growth backed by robust new
orders
Wison Engineering
Services (2236)
8 1.98 4.35 119.7 Buy 12.0 7.8 3.6 6.4 2.8 0.1
Seasonality resulted in tiny 1H13 profit; substantial
backlog to drive future growth
Freetech Road
Recycling (6888)
3 2.83 3.61 27.6 OW NA 13.5 10.5 0.0 NA NA
Road Doctor with Hot-in-Place technology heralds a
bright future
Zhengzhou Coal Mining
Machinery Group (564)
1 5.31 14.02 164.0 Buy 4.2 3.6 3.1 2.9 0.7 0.3 Growth stemming from vast opportunities
Construction Material
Asia Cement (743) 6 3.84 4.50 17.2 OW 12.1 6.6 5.9 3.3 0.5 0.3
1H13 beat on GP/t and forex; strong 3Q13E with bright
outlook in Eastern region
China Glass (3300) 2 1.03 1.30 26.2 OW NA 27.1 11.6 0.0 0.6 NA
Earlier-than-expected turnaround in 1H13; foreseeing
further margin uptrend
CNBM (3323) 23 7.99 7.00 (12.4) Hold 6.1 6.8 5.9 2.2 0.9 3.2
Weak 1H13 on expenses; improving Eastern but gearing
remains a concern
Conch (914) 36 27.45 31.00 12.9 Buy 18.2 13.5 11.9 1.6 2.1 0.8
1H13 miss slightly on GP/t and impairment, but bright
price outlook should outweigh
CR Cement (1313) 35 5.38 4.90 (8.9) Hold 14.9 12.8 11.2 1.5 1.5 1.0
1H13 beat on forex / cost savings; better regional outlook
but moderating growth
China Lesso Group
(2128)
15 5.05 5.50 8.9 Buy 9.7 8.7 7.8 2.8 1.8 0.8 Good 1H13 results beat on strong gross margins
Shanshui (691) 9 3.29 3.50 6.4 Hold 4.8 8.1 7.0 4.2 0.8 NA
Weak 1H13 results on expenses; pressure from core
markets and funding needs
Singyes (750) 5 7.85 9.10 15.9 Buy 11.9 8.6 6.9 1.3 1.7 0.4
1H13 dragged by margins/expenses; but still leverage on
distributed generation projects
Sinoma (1893) 2 1.77 2.66 50.3 Hold 7.8 5.4 4.5 2.1 0.4 0.2 Riding in the dark