News Focus 新闻焦点 Analyst: Johnny Wong 分析员 : 王俊浩 Morning Research Focus On 2 February (US time), the US government stated that the average hourly earnin

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1 Equity Research 股票研究 Morning Research Focus Research Department 12 February 2018 今 晨 焦 点 证 券 研 究 报 告 Equity Research Report Morning Research Focus [Table_Summary] Table of Contents 目录 News Focus 新闻焦点 Weekly Overview and Trading Focus 上周回顾和本周交易提示 Upcoming key economic data and events 即将公布的重要经济数据和事件 Industry and Company Focus 行业和公司焦点 Huaneng Renewables (00958 HK): Wind power generation in January increased by 22.1% YoY; estimated wind utilisation hours was up by 15.3% YoY 华能新能源 (00958 HK): 1 月份风电发电量同比上升 22.1%, 估算利用小时数同比升 15.3% Powerlong Real Estate (01238 HK): Contracted Sales Increased 37.4% YoY to RMB2.068Bn In Jan 宝龙地产 (01238 HK):2018 年 1 月合约销售同比增长 37.4% 至 亿元人民币 Dongfeng Motor (00489 HK): Vehicles Sales Increased 17.3% YoY in Jan 东风汽车 (00489 HK):2018 年 1 月汽车销售同比增长 17.3% Latest Reports 最新报告摘要 Nil. Newly Published Key Economic Data for, US and Europe 中美欧最新公布的重要经济数据 Appendices:Chinese Version of the Industry and Company Focus, Latest Reports. 后附 : 行业和公司焦点, 最新报告摘要中文版 HSI Performance HSCEI Performance 35,000 33,000 31,000 29,000 27,000 25,000 23,000 21,000 19,000 17,000 Feb/17 May/17 Aug/17 Nov/17 Feb/18 Source: Bloomberg 16,000 14,000 12,000 10,000 8,000 6,000 Feb/17 May/17 Aug/17 Nov/17 Feb/18 Source: Bloomberg See the last page for disclaimer 1 of 10

2 News Focus 新闻焦点 Analyst: Johnny Wong 分析员 : 王俊浩 Morning Research Focus On 2 February (US time), the US government stated that the average hourly earnings of private workers in January rose 2.9% yoy, higher than the market expectation of 2.6% and is the largest increase since June Market concerns about rising wages will bring greater inflationary pressure on the US, further speeding up the pace of interest rate increase by the US Fed. The US Treasury bond market retreated with the 10-year Treasury yield rising above the 2.8% level, the highest level since January The surge in US Treasury yields had ramifications on market sentiment. In addition, the US stock market greatly increased this year, with the Dow Jones Industrial Average up 5.5% mom, the S&P 500 up 5.6% mom and the Nasdaq Composite Index up 7.2% mom in January. Markets adjusted to digest the cumulated increase. The US market suffered large one-day declines on February 2, February 5 and February 8 (US time) when the Dow Jones Industrial Average plunged 2.5%, 4.6% and 4.1%, respectively. The Hong Kong stock market witnessed one-day drops of 1.1%, 5.1% and 3.1% on February 5, February 6 and February 9 (Hong Kong time), respectively, the 3 trading days that followed the aforementioned falls in the US stock market. We believe that the recent declines in the Hong Kong stock market were most likely technical. We maintain our conclusions: The performance of the Hong Kong stock market led global stock markets again in January, but we expect that the volatility in the Hong Kong market will increase in February as the Chinese New Year holiday will impose short-term effects on market liquidity is the year when global monetary policy normalization gradually comes into effect. Despite the negative factors in the first half of the year, supportive factors still remain strong. The Hong Kong market is expected to continue to reach record highs and then to fluctuate at high levels. 政府于时间 2 月 2 日公布 1 月份私人劳工平均时薪按年上升 2.9%, 高于市场预期的 2.6%, 是 2009 年 6 月以来最大升幅 市场忧虑工资上升将为带来更大的通胀压力, 进一步加快美联储的加息步伐 国债市场转趋疲弱, 其中 10 年期国债收益率升穿 2.8% 以上水平, 是 2014 年 1 月后新高 国债收益率加速上行影响市场气氛, 加上今年已累积不少升幅, 其中 1 月份道琼斯工业平均指数按月上升 5.5% 标准普尔 500 指数按月上升 5.6% 纳斯达克综合指数按月上升 7.2%, 市场顺势调整 市场于时间 2 月 2 日 2 月 5 日及 2 月 8 日出现较大跌幅, 其中道琼斯工业平均指数在以上 3 日分别单日下挫 2.5%,4.6% 及 4.1% 香港股票市场在紧接上述的 3 个交易日, 即香港时间 2 月 5 日 2 月 6 日及 2 月 9 日相应出现 1.1% 5.1% 及 3.1% 的单日跌幅 我们相信香港股市最近的调整属于技术性调整居多 我们维持原有的判断 : 港股市场 1 月表现再次领先环球主要股票市场, 但春节假期效应将会为港股资金带来影响, 我们预料港股市场于 2 月的波动性将会增加 展望 2018 年是全球货币正常化逐渐见效的一年 盈利增长难以维持 2017 年的高增长 上半年虽有负面因素, 但市场支持因素仍强劲 预期是续创新高后于高位波动的格局 Weekly Overview and Trading Focus 上周回顾和本周交易提示 Analyst: Gary Ching 分析员 : 程嘉伟 Overview of last week 上周回顾 The Hong Kong market continued to decrease last week with HSI down 9.5% wow to 29,507 and HSCEI down 12.1% wow to 11, ,901. The US 10-year Treasury yield continued to rise. The plummet of US stock market dragged down investor risk appetite across the globe, global stock markets also decreased. US dollar rebounded against major currencies. Bitcoin suffered dramatic fall. S&P 500 down 5.2% wow to 2,619 and Dow Jones Industrial Average down 5.2% wow to 24,190. Shanghai Composite Index decreased 9.6% wow to 3,129. The performance of the Hong Kong stock market led global stock markets again in January, but we expect that the volatility in the Hong Kong market will increase in February as the Chinese New Year holiday will impose short-term effects on market liquidity. 上周港股持续下跌, 恒指按周累计下跌 9.5%, 收报 29,507 点, 国指按周累计下跌 12.1%, 收报 11,901 点 上周十年期国债收益率持续上升 美股急跌引发环球投资者风险胃纳下降, 全球股市跟随下跌 美元兑主要货币显著反弹 比特币明显下跌 标准普尔 500 指数按周累计下跌 5.2%, 收报 2,619 点, 道琼斯指数按周累计下跌 5.2%, 收报 24,190 点 上证综合指数按周累计下跌 9.6%, See the last page for disclaimer 2 of 10

3 Morning Research Focus 收报 3,129 点 港股市场 1 月表现再次领先环球主要股票市场, 但春节假期效应将会为港股资金带来影响, 我们预料港股市场于 2 月的波动性将会增加 Key market data performance of last week (Gary Ching) 上周主要市场数据表现 ( 程嘉伟 ) Key data 主要数据 WoW Change 环比变动 O/N SHIBOR 隔夜 SHIBOR RMB middle rate 人民币中间价 USD/RMB onshore 在岸人民币兑美元即期汇率 PBoC open market operation 人民银行公开市场操作 US dollar index 美元指数 EUR/USD spot rate 欧元兑美元 WTI oil 纽约期油 Spot price of gold 黄金现货价格 Increased 9.1 bps 上升 9.1 个基点 Decreased 309 bps 下跌 309 个基点 Decreased 18 bps 下跌 18 个基点 RMB220 billion liquidity withdrawal 净回笼 2,200 亿人民币 Increased 1.4% 上升 1.4% Decreased 1.7% 下跌 1.7% Decreased 9.5% 下跌 9.5% Decreased 1.3% 下跌 1.3% Source: Bloomberg 数据来源 : 彭博 Upcoming key economic data and events 即将公布的重要经济数据和事件 Analyst: Gary Ching 分析员 : 程嘉伟 Date 日期 Country 国家 Data / events 数据 / 事件 Market Consensus 市场一致预期 Previous Value 前值 Change 变动 Feb 2 月 日 January New RMB loans (bn) 1 月新增人民币贷款 ( 十亿元 ) 2, % Feb 2 月 日 January Total social financing (bn RMB) 1 月社会融资总量 ( 十亿元人民币 ) 3, , % Feb 2 月 日 January Money supply M1 (yoy) 1 月货币供应 M1 同比增速 13.5% 11.8% 1.7ppt Feb 2 月 日 January Money supply M2 (yoy) 1 月货币供应 M2 同比增速 8.2% 8.2% 0ppt 9-18 Feb 2 月 9-18 日 January Actual FDI (yoy) 1 月实际外商直接投资同比增速 n.a. (9.2%) n.a. See the last page for disclaimer 3 of 10

4 Morning Research Focus 14 Feb 2 月 14 日 January CPI (yoy) 1 月 CPI 同比增速 1.9% 2.1% (0.2ppts) 15 Feb 2 月 15 日 January PPI (yoy) 1 月 PPI 同比增速 2.5% 2.6% (0.1ppts) 15 Feb 2 月 15 日 January Industrial Production (mom) 1 月工业产值环比比增长 0.2% 0.9% (0.7ppts) 16 Feb 2 月 16 日 December Total Net TIC Flows (bn USD) 12 月国际资本流动净额 ( 十亿美元 ) n.a n.a. 16 Feb 2 月 16 日 January Housing Starts annualized (SA, '000) 1 月年化新屋开工量 ( 季调, 千套 ) 1,231 1, % 16 Feb 2 月 16 日 February University of Michigan Consumer Sentiment (preliminary) 2 月密歇根大学消费者信心指数 ( 初值 ) (0.2ppts) Note: All the forecasts in the above table are based on market consensus from Bloomberg. 注 : 上表中所有预测都基于彭博的市场一致预期 See the last page for disclaimer 4 of 10

5 Morning Research Focus Industry and Company Focus Huaneng Renewables (00958 HK): Wind power generation in January increased by 22.1% YoY; estimated wind utilisation hours was up by 15.3% YoY. Analyst: Jake Wang What happened: Huaneng Renewables ( the Company ) announced its power generation figures in January 2018: Power gen. (GWh) Jan YoY 2018 YTD YoY Wind 2, % 2, % Solar % % Total 2, % 2, % Source: the Company. Comments and Views: In Jan the Company s wind power generation increased by 22.1% to 2,342GWh; estimated monthly wind power utilisation was 216 hours, up by 29 hours or 15.3% compared to the same period last year. The Company s provincial capacity weighted average wind speed increased 8.2% YoY to 5.19m/s for Jan. 2018; wind resources for Inner Mongolia and Hebei Province had seen strong recovery (up by 20.8% and 43.7%) and led to notable YoY increase for wind power generation in these regions. In addition, regional power generation for Jilin Province surged 357.6% YoY from the improvement of wind curtailment situations. Investment suggestion: The Company s wind utilisation performance in January was in line with our expectation. Wind resources recovered compared to that of last year while the Company s wind curtailment rate remain at relatively low levels, contributing to the power generation results. Our current investment rating for Huaneng Renewables is a Buy, TP is HK$3.30. The Company s current valuation is appealing and we recommend buying at bargain. Powerlong Real Estate (01238 HK): Contracted Sales Increased 37.4% YoY to RMB2.068Bn In Jan Analyst: Van Liu What happened: Powerlong Real Estate ( the Company ) has announced its Jan. contracted sales as follows: Currency (Bn RMB) YoY MoM Unit (Sq.m) YoY MoM Jan. Contracted Sales % -24.0% Jan. Contracted GFA Sold 167, % -16.0% Jan Contracted ASP (RMB/sq.m) Source: the Company. 12, % -9.5% Comments and Views: Contracted sales in Jan represented a 37.4% YoY increase but a -24.0% MoM decrease, which was in line with our expectations. We still think that the Company s contracted sales will maintain a stable growth due to its numerous saleable resources in Shanghai. Investment suggestion: We expect stable contracted sales growth for the Company. In addition, the Company s commercial properties portfolio is sizable and is still expanding, which will lead to strong rental income growth. The Company s current investment rating is Buy and the target price is HK$4.79, which See the last page for disclaimer 5 of 10

6 Morning Research Focus represents a 30% discount to its 2018E NAV and also implies 5.9x 2018 underlying PER and 0.6x 2018 PBR. Dongfeng Motor (00489 HK): Vehicles Sales Increased 17.3% YoY in Jan Analyst: Toliver Ma What happened: Dongfeng Motor ( DFM ) announced its January 2018 sales data. Overall vehicle sales recorded a yoy increase of 17.3%. PV sales was 261,443 units, a yoy increase of 13.5%, whereas CV sales was 36,634 units, up 54.1% yoy. Comments and Views: Overall vehicle sales was satisfactory. In the PV segment, Dongfeng Honda and Dongfeng Nissan continued to drive sales, up 15.6% and 40.4% yoy, respectively. On the other hand, Dongfeng PSA starts off well with a yoy increase of 13.7% yoy thanks to the low base and a Chinese New Year timing difference. In contrast, Dongfeng Liuqi (PV) and Fengshen continue to suffer, recording yoy decrease of 20.0% and 27.3%, respectively. In the CV segment, the Company had a strong start. Both heavy-duty truck and light-duty truck shows strong sales momentum, up 30.8% and 125.9% yoy, respectively. Investment suggestion: We believe competition to continue to intensify in the low-end market and should negatively affect its self-owned brands. While DF PSA sales recovery still a long way due to its large array of aged models. The above all should continue to offset and hamper the growth from Japanese brands. Our investment rating is Neutral, with TP of HK$10.54, representing 5.5x 2017 PER, 5.2x 2018 PER, 0.65x 2017 PBR and 0.59x 2018 PBR. Latest Reports Nil. Newly Published Key Economic Data for, US and Europe 中美欧最新公布的重要经济数据 Analyst: Gary Ching 分析员 : 程嘉伟 Country 国家 Indicator 指标名称 Data Period 数据期间 Current Value 当期值 MoM / QoQ 环比变动 YoY 同比变动 Market Consensus 市场一致预期 CPI (yoy) CPI 同比增速 January 1 月 1.5% (0.3ppts) (1.0ppts) 1.5% PPI (yoy) PPI 同比增速 January 1 月 4.3% (0.6ppts) (2.6ppts) 4.3% Source: National Bureau of Statistics of, Bloomberg 数据来源 : 国家统计局 彭博 See the last page for disclaimer 6 of 10

7 Chinese Translation 中文翻译 Morning Research Focus 行业和公司焦点 华能新能源 (00958 HK): 1 月份风电发电量同比上升 22.1%, 估算利用小时数同比升 15.3% 分析员 : 汪昌江 事件描述 : 华能新能源 ( 公司 ) 公布 2018 年 1 月发电量 : 发电量 (GWh) 2018 年 1 月同比 2018 累计同比 风电 2, % 2, % 太阳能 % % 合计 2, % 2, % 资料来源 : 公司 观点评论 :2018 年 1 月份公司风电发电量同比上升 22.1% 至 2,342GWh, 估算的风电当月利用小时为 216 小 时, 较去年同期增加 29 小时或 15.3% 公司 1 月份各省装机容量加权的平均风速同比上升 8.2% 至 5.19 米 / 秒, 其中内蒙古及河北省的风资源情况有较明显回升 ( 分别上升 20.8% 和 43.7%), 地区风电发电量同比录得 显著增长 此外, 吉林省由于限电情况的改善, 区域发电量同比上升 357.6% 投资建议 : 公司 1 月份的风电利用小时数表现符合我们预期 风资源情况较去年有所好转, 公司限电率继续保 持较低水平, 利好发电量表现 我们目前对华能新能源投资评级为 买入, 目标价为 3.30 港元 公司目前估 值吸引, 建议逢低买入 宝龙地产 (01238 HK):2018 年 1 月合约销售同比增长 37.4% 至 亿元人民币 分析员 : 刘斐凡 事件描述 : 宝龙地产 ( 公司 ) 公布了 1 月合约销售情况, 如下 : 货币单位 ( 十亿人民 币 ) 同比 环比 单位 ( 平 方米 ) 同比 环比 1 月合约 销售额 % -24.0% 1 月合约销 售面积 167, % -16.0% 1 月合约销售均价 ( 人民币 / 平方米 ) 12, % -9.5% 资料来源 : 公司 观点评论 : 合约销售在 2018 年 1 月同比上升 37.4%, 但环比下降 24.0% 因为其拥有大量在上海的可售资源, 我们仍然相信公司的合约销售将保持稳定增长 投资建议 : 公司合约销售预计稳定增长 此外, 公司的商业物业组合相当庞大且仍在增长, 这将会导致强劲的 租金收入增长 公司目前投资评级为 买入, 目标价为 4.79 港元, 相当于 2018 年 NAV 有 30% 的折让, 也 相当于 5.9 倍 2018 年的核心市盈率和 0.6 倍 2018 年的市净率 See the last page for disclaimer 7 of 10

8 Morning Research Focus 东风汽车 (00489 HK):2018 年 1 月汽车销售同比增长 17.3% 分析员 : 马守彰 事件描述 : 东风汽车公布其 2018 年 1 月的销售数据, 整体汽车销售同比增长 17.3% 乘用车销量为 261,443 辆, 同比增长 13.5%; 商用车销量为 36,634 辆, 同比增长 54.1% 观点评论 : 整体汽车销售满意 在乘用车分部, 东风本田和东风日产继续推动销售, 分别同比上涨 15.6% 和 40.4% 另一方面, 由于低基数和春节时间差, 东风神龙开局良好, 录得同比增长 13.7% 相比之下, 东风柳汽 (PV) 和风神继续受压, 分别同比下降 20.0% 和 27.3% 在商用车方面, 公司开局强劲 重卡和轻卡销售势头维持, 分别同比上涨 30.8% 和 125.9% 投资建议 : 我们认为低端市场竞争将继续加剧, 并将对自主品牌产生负面影响 由于其大量的老车型, 东风神龙销售复苏仍然漫长 以上所有都应该继续抵消和阻碍日本品牌的增长 目前公司的的投资评级为 中性 及 港元的目标价, 相当于 5.5 倍 2017 年市盈率和 5.2 倍 2018 年市盈率, 0.65 倍 2017 年市净率和 0.59 倍 2018 年市净率 最新报告 Nil. See the last page for disclaimer 8 of 10

9 Research Department 研究部 Morning Research Focus Grace Liu 刘谷 Head of Research, Market Strategy, Petrochemicals 主管, 市场策略 石化 (852) Noah Hudson Noah Hudson Consumer (Hotels), Gaming 消费 ( 酒店 ) 博彩 [email protected] (86755) Gary Wong 黄家玮 Environmental Protection, Infrastructure 环保 基建 [email protected] (852) Kevin Guo 郭勇 Raw Materials, Gas 原材料 燃气 [email protected] (86755) Ricky Lai 黎柏坚 Telecommunications, Internet 电信 互联网 [email protected] (852) Richard Cao 曹柱 Banking 银行 [email protected] (86755) Jun Zhu 朱俊杰 Solar, Electric Equipment 太阳能 电力设备 [email protected] (852) Andrew Song 宋涛 Consumer (Retailing), Home Appliances 消费 ( 零售 ) 家电 [email protected] (852) Van Liu 刘斐凡 Property 房地产 [email protected] (86755) Sean Xiang 向宇豪 Machinery, Construction Materials 机械 建材 [email protected] (86755) Terry Hong 洪学宇 Consumer (Apparel) 消费 ( 服装 ) [email protected] (86755) Johnny Wong 王俊浩 Macroeconomics, Property 宏观 房地产 [email protected] (852) Toliver Ma 马守彰 Aviation, Automobiles & Components 航空 汽车 [email protected] (852) Spencer Fan 范明 Shipping & Logistics, Ports, 航运物流 港口 [email protected] (86755) Barney Wu 吴宇扬 Consumer (Food & Beverage, Household Products) 消费 ( 食品饮料 日用品 ) [email protected] (86755) Jake Wang 汪昌江 Wind & others, Market Strategy 风电及其它 市场策略 [email protected] (86755) Wiley Huang 黄重钧 Insurance, Fixed-income 保险 债券 [email protected] (852) David Liu 刘静骁 Petrochemicals 石化 [email protected] (852) Kay Mai 麦梓琪 Health care 医药 [email protected] (86755) Danny Law 罗沛达 Conglomerate, E-commerce 综合 电子商务 [email protected] (852) Gary Ching 程嘉伟 Market Strategy 市场策略 [email protected] (852) Square Chui 徐惠芳 Futures, Forex 期货 外汇 [email protected] (852) Gary Yang 杨光 Research Assistant 研究助理 [email protected] (852) Danny Deng 邓协 Research Assistant 研究助理 [email protected] (852) Jason Zhou 周桓葳 Research Assistant 研究助理 [email protected] (852) David Feng 冯廷帅 Research Assistant 研究助理 [email protected] (852) Gin Yu 余劲同 Research Assistant 研究助理 [email protected] (852) Esabella Zhao 赵舒蔓 Research Assistant, Translator 研究助理 翻译员 [email protected] (86755) Penny Pan 潘凌蕾 Secretary, Translator 秘书 翻译员 [email protected] (852) See the last page for disclaimer 9 of 10

10 Company Rating Definition The Benchmark: Hong Kong Hang Seng Index / NASDAQ Composite Index Time Horizon: 6 to 18 months Rating Definition Buy 买入 Relative Performance >15%; or the fundamental outlook of the company or sector is favorable. Accumulate 收集 Relative Performance is 5% to 15%; or the fundamental outlook of the company or sector is favorable. Neutral 中性 Relative Performance is -5% to 5%; or the fundamental outlook of the company or sector is neutral. Reduce 减持 Relative Performance is -5% to -15%; or the fundamental outlook of the company or sector is unfavorable. Sell 卖出 Relative Performance <-15%; or the fundamental outlook of the company or sector is unfavorable. Morning Research Focus Sector Rating Definition The Benchmark: Hong Kong Hang Seng Index / NASDAQ Composite Index Time Horizon: 6 to 18 months Rating Definition Outperform 跑赢大市 Relative Performance >5%; or the fundamental outlook of the sector is favorable. Neutral 中性 Relative Performance is -5% to 5%; or the fundamental outlook of the sector is neutral. Underperform 跑输大市 Relative Performance <-5%; or the fundamental outlook of the sector is unfavorable. DISCLOSURE OF INTERESTS (1) Except for SHENZHEN INTERNATIONAL (00152 HK),The Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report. (2) The Analysts and their associates do not have any financial interests in relation to the issuer mentioned in this Research Report. (3) Except for GREENLAND BROAD (01253 HK),GUOTAI JUNAN I (01788 HK),BINHAI INVESTMENT (02886 HK),GFI MSCI A I (03156 HK),CAM SCSMALLCAP (03157 HK),ZHENRO PPT (06158 HK),LINK HOLDINGS (08237 HK),GFI MSCI A I-R (CNY) (83156 HK),Guotai Junan and its group companies do not hold equal to or more than 1% of the market capitalization of the issuer mentioned in this Research Report. (4) Guotai Junan and its group companies have had investment banking relationships with SMI HOLDINGS GROUP (00198 HK),GOME ELECTRICAL APPLIANCES (00493 HK),CHINA SINGYES SOLAR TECHNOLOGIES (00750 HK),DONGJIANG ENVIRONMENTAL- H SHARES (00895 HK),HUANENG POWER- H SHARES (00902 HK),HUANENG RENEWABLES- H SHARES (00958 HK),MODERN LAND (01107 HK),SINO BIOPHARMACEUTICAL (01177 HK),POWERLONG REAL ESTATE (01238 HK),XIWANG SPECIAL STEEL (01266 HK),3SBIO (01530 HK),SUNDART HOLDINGS LTD. (01568 HK),CHINA SOUTH CITY (01668 HK),CHINA WOOD OPTIMIZATION (01885 HK),CHINA MINSHENG BANKING CORP.- H SHARES (01988 HK),COUNTRY GARDEN (02007 HK),CHARMACY PHARMACEUTICAL- H SHARES (02289 HK),GUANGZHOU R&F PROPERTIES- H SHARES (02777 HK),BINHAI INVESTMENT (02886 HK),EVERGRANDE REAL ESTATE (03333 HK),TANSH GLOBAL FOOD (03666 HK),HUISHANG BANK- H SHARES (03698 HK),DALI FOODS (03799 HK),CHINA AOYUAN PROPERTY (03883 HK),TIANYUN INTERNATIONAL (06836 HK) mentioned in this Research Report within the preceding 12 months. (5) Guotai Junan and its group companies are not making a market in the securities mentioned in this Research Report. (6) Guotai Junan and its group companies have not employed an individual serving as an officer of any issuers mentioned in this Research Report. There is no officer of any issuers mentioned in this Research Report associated with Guotai Junan and its group companies. DISCLAIMER This Research Report does not constitute an invitation or offer to acquire, purchase or subscribe for securities by Guotai Junan Securities (Hong Kong) Limited ("Guotai Junan"). Guotai Junan and its group companies may do business that relates to companies covered in research reports, including investment banking, investment services, etc. (for example, the placing agent, lead manager, sponsor, underwriter or invest proprietarily). Any opinions expressed in this report may differ or be contrary to opinions or investment strategies expressed orally or in written form by sales persons, dealers and other professional executives of Guotai Junan group of companies. Any opinions expressed in this report may differ or be contrary to opinions or investment decisions made by the asset management and investment banking groups of Guotai Junan. Though best effort has been made to ensure the accuracy of the information and data contained in this Research Report, Guotai Junan does not guarantee the accuracy and completeness of the information and data herein. This Research Report may contain some forward-looking estimates and forecasts derived from the assumptions of the future political and economic conditions with inherently unpredictable and mutable situation, so uncertainty may contain. Investors should understand and comprehend the investment objectives and its related risks, and where necessary consult their own financial advisers prior to any investment decision. This Research Report is not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation or which would subject Guotai Junan and its group companies to any registration or licensing requirement within such jurisdiction Guotai Junan Securities (Hong Kong) Limited. All Rights Reserved. 27/F., Low Block, Grand Millennium Plaza, 181 Queen s Road Central, Hong Kong. Tel.: (852) Fax: (852) Website: See the last page for disclaimer 10 of 10