外文报告：SWS-Watch List AM-130521

本研究报告仅通过邮件提供给 泰信基金 泰信基金管理有限公司(research@http://wendang.chazidian.com) 使用。1
Please refer to the last page for important Disclosures. 1SWS RESEARCH Co.,LTD
No.99 Nanjing Rd.(E) Shanghai China

Macro Ins ight



N / A


Inves tment Strategy


Analyst
Yang Shaohua
A0230512070006
Tel: 86-21-23297386
yangsh@http://wendang.chazidian.com

Wang Sheng
A0230511060001
Tel: 86-21-23297448
wangsheng@http://wendang.chazidian.com


Translator
Liu Li
Tel: 86-21-23297218
liuli@http://wendang.chazidian.com


SWS Conviction Buy Lis t (May 21-May 27): Top picks for the next 3
months .
Over the past trading week, stocks on our Conviction BUY List posted an absolute
return of 3.20%, outperforming the Shanghai Composite Index by 0.61%. Over the
past four trading weeks, our recommended stocks posted an absolute return of
7.44%, outperforming the Shanghai Composite Index by 4.86%. So far this year,
stocks on our List have gained cumulative absolute return of 11.14% and
cumulative excess return of 10.13%.
In this issue, we maintain our constituent stocks unchanged.
We now highlight the following 24 companies, which are Ping An Insurance
(601318), China Pacific Insurance (Group) (601601), Kangmei Pharmaceutical
(600518), China Minsheng Banking Corporation (600016), Fujian Superpipe
(300198), Sinopec (600028), Shanghai Jahwa United (600315), BlueFocus
Communication Group (300058), Gree Electric Appliances (000651), Industrial
Bank (601166), Poly Real Estate (600048), Dongjiang Environmental Company
(002672), Tasly Pharmaceutical Group (600535), CITIC Securities Company
Limited (600030), Inner Mongolia Yili Industrial Group (600887), COSCO Shipping
(600428), SAIC Motor (600104), Bank of Nanjing (601009), Selen Science and
Technology (002341), Shanghai Luxin Packing Materials Science & Technology
(002565), Shenzhen Capchem Technology (300037), Henan Shuanghui Investment
& Development (000895), Jiujiujiu Technology (002411), and Shandong Longlive
Bio-Technology (002604).


Sector Watch


N / A
May 21 AM, 2013
SWS Wat ch Li st

本研究报告仅通过邮件提供给 泰信基金 泰信基金管理有限公司(research@http://wendang.chazidian.com) 使用。2
http://wendang.chazidian.com SWS Watch List

Please refer to the last page for important Disclosures.
2

SWS Univers e



Analyst
Zhou Xuhui
A0230512060004
Tel: 86-21-23297712
zhouxh@http://wendang.chazidian.com


Translator
Liu Li
Tel: 86-21-23297218
liuli@http://wendang.chazidian.com


TBEA (600089): PV indus try has touched the bottom. Photovoltaic
(PV) power s tation bus ines s and polys ilicon bus ines s help boos t
performance turnaround.
On the evening of May 20, JA Solar Holdings (NASDAQ:JASO) announced its
1Q13 earnings results. Due to more-than-expected gross margin improvement, the
stock price of JA Solar Holdings surged over 70%, the biggest growth since 2013.
Our comments are as follows:
1. It is certain that PV industry has reached the bottom level.
PV industry faces two turning points: firstly, it faces market transfer from European
market to Chinese/American/Japanese market; secondly, it tends to achieve grid
parity instead of being driven by government subsidy.
2. Domestic PV power station business and polysilicon business will be the biggest
beneficiaries.
Europe will likely impose AD/CVD duties in the preliminary verdict. In our views,
China will take two measures to deal with this situation: 1. China may launch
AD/CVD investigations on overseas polysilicon. In such case, domestic polysilicon
producers will gain benefits; 2. China will expand domestic market to offset the
negative effects. If so, domestic PV plants builders will be the beneficiaries.
3. Currently, TBEA (600089) is our top pick in the PV industry due to:
Strong competitiveness: TBEA is a leading PV power station builder. In 2012, it built
PV power stations with total installed capacity of 450MW. In 2013, it is expected to
build power stations with installed capacity of 1000MW. Additionally, 12K tons
polysilicon project will enter the commissioning stage. It is expected that the cost of
the new project will drop to USD13/kg in 3Q13.
High performance resilience: In 2012, net income attributable of PV industry
amounted to –RMB120M. In 2013, losses will be eliminated along with performance
turnaround. Net income attributable of PV industry is hopefully expected to reach
about RMB170M, implying 30% earnings resilience.
High valuation safety margin: We estimate TBEA’s (600089) 2013-2015 EPS to be
RMB0.53, RMB0.68 and RMB0.78, representing PEs of 15x, 11x and 10x,
respectively. TBEA is significantly undervalued as compared with other power
equipment companies (average valuation: 25times) and other PV companies
(average valuation: 30-100times).

Fund Derivatives

N / A
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Dis clos ure：
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listed corporation reviewed or (iv) do not, presently or within the last 12 months, have any investment banking relationship with the listed corporation
reviewed.
Undertakings of the Analyst
Equity Analyst
I am conferred the Professional Quality of Securities Investment Consulting Industry by the Securities Association of China and have registered as the
Securities Analyst. I hereby issue this report independently and objectively with due diligence, professional and prudent research methods and only
legitimate information is used in this report. I am also responsible for the content and opinions of this report. I have never been, am not, and will not be
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Introduction of Share Investment Rating
Security Investment Rating：
When measuring the difference between the markup of the security and that of the market’s benchmark within six months after the release of this report,
we define the terms as follows:
Buy： with a markup more than 20% better than that of the market；
Outperform：With a markup 5% to 20% better than that of the market；
Neutral： with a markup less than 5% better or worse than that of the market；
Underperform： with a markup more than 5% worse than that of the market.
Industry Investment Rating:
When measuring the difference between the markup of the industry index and that of the market’s benchmark within six months after the release of the
report, we define the terms as follows:
Overweight：Industry performs better than that of the whole market；
Neutral： Industry performs about the same as that of the whole market；
Underweight：Industry performs worse than that of the whole market.
We would like to remind you that different security research institutions adopt different rating terminologies and rating standards. We adopt the relative
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industry classification is available at our sales personnel if you are interested.
HSCEI is the benchmark employed in this report.

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本研究报告仅通过邮件提供给 泰信基金 泰信基金管理有限公司(research@http://wendang.chazidian.com) 使用。4
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