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1 Equity Research 股票研究 Morning Research Department 今晨焦点证券研究报告 Equity Research Report Morning Table of Contents 目录 Industry and Company Focus 行业和公司焦点 Geely Auto (00175 HK): 1H17 Net Profit Up 127.7%, Roughly In Line with Expectation 吉利汽车 (00175 HK):2017 年上半年净利润增长 127.7%, 大致符合预期 17 August 2017 China Aoyuan (03883 HK): 1H17 Net Profit Increased 32.4% YoY to RMB750.4 Mn, in line with Our Expectations 中国奥园 (03883 HK): 2017 年上半年净利润同比升 32.4% 至人民币 亿元, 符合我们预期 Modern Land (01107 HK): Land Acquisition in Wuxi 当代置业 (01107 HK): 在无锡的土地收购 Tencent (00700 HK): 2Q17 Net Profit Up 70% YoY, Beat Expectations 腾讯 (00700 HK): 2017 年第 2 季度净利同比增长 70%, 好于预期 China Unicom (00762 HK): 1H17 Net Profit Up 69.0% YoY, In-Line with Expectation, Mixed Ownership Reform Details Announced 中国联通 (00762 HK): 2017 年上半年纯利同比增长 69%, 符合预期, 公布混改的细节 China Dongxiang (03818 HK): 1H17 Top Line Missed but Bottom Line In Line with Extremely High Special Dividend 中国动向 (03818 HK): 2017 年上半年收入不及预期但盈利符合预期并宣派极高的特别股息 Latest Reports 最新报告摘要 Company Name 公司名称 China Gold International 中国黄金国际 Code 代码 HK HK Title 标题 2017 Interim Results Beat Expectations, Maintain Neutral 2017 年中期业绩超出市场预期, 维持 中性 评级 TP 目标价 Chg 变动 Rating 评级 Chg 变动 EPS Est. Change? 盈利预测 是否改变 HK$12.20 Neutral -- Y HK$12.20 中性 -- 是 Newly Published Key Economic Data for China, 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 See the last page for disclaimer Page 1 of 11

2 Morning HSI Performance HSCEI Performance 29,000 16,000 27,000 25,000 23,000 21,000 19,000 14,000 12,000 10,000 8,000 17,000 Aug/16 Nov/16 Feb/17 May/17 Aug/17 Source: Bloomberg 6,000 Aug/16 Nov/16 Feb/17 May/17 Aug/17 Source: Bloomberg Industry and Company Focus Geely Auto (00175 HK): 1H17 Net Profit Up 127.7%, Roughly In Line with Expectation Analyst: Toliver Ma What happened: Geely Auto (00175 HK) announced 1H17 results. Key summary is presented below: 1H17 YoY Currency (RMB mn) (%) (RMB) Total Revenue 39, % DPS n.a. Net profit attributable to parent 4, % Basic EPS (RMB) % Comments and Views: Result is mainly due to a significant increase of vehicle sales as driven by its new SUV line up. Due to the low comparison base in 1H16 and the launch of new models, Geely sales has prospered in the first half. Vehicle sales has reached 530,627 units, jumped 89.3% yoy. Geely has launched three SUVs (Boyue, Vision SUV and Emgrand GS) around 2Q16 and 3Q16 which only fully ramped up in 2H16. These SUVs has a higher selling price and sales proportion has jumped to 45.4% in 1H17 (1H16:9.5%), thereby seeing ASP continued to increase by 16.4% yoy. Owing to the better operating leverage, gross margin improved 1.4 ppts to 19.2%; and operating margin expanded 2.5 ppts as distribution cost and administration cost has been well controlled, seeing their per revenue ratio dropped 0.1 and 0.9 ppts yoy. Also worth noted that, share of results of JV was RMB 21.6 million, which sees the first profit since inception in 2015, signalling the auto finance business is gaining momentum. Investment suggestion: 1H17 result shows that Geely Auto s products are strongly welcomed by the market and has built a strong foundation to go upscale. Next catalyst lies with the performance of the new brand and we expect warm reception from the market following the set up of joint venture. We reiterate investment rating of Buy, and we will revise up our earnings forecast in our next report. See the last page for disclaimer Page 2 of 11

3 Morning China Aoyuan (03883 HK): 1H17 Net Profit Increased 32.4% YoY to RMB750.4 Mn, in line with Our Expectations Analyst: Van Liu What happened: China Aoyuan ( the Company ) has announced its 1H17 results as follows: Currency (RMB) YoY YoY Revenue 8,154.3 mn 25.8% Net Gearing Ratio 63.0% 12.3 ppts Net Profit mn 32.4% Gross Profit Margin 26.9% 1.9 ppts EPS % Source: the Company. Comments and Views: The Company delivered in-line net profit. If excluding revaluation gain from investment properties and exchange losses, the underlying net profit was still in line with our expectation. Key viewpoints of the results are the following: 1/ the Company maintained fast growth given 62.0% YoY growth of contracted sales and 25.8% YoY growth of the revenue; 2/ we saw stable gross margins; 3/ the leverage possessed a healthy position as the net gearing ratio amounted to 63.0%; 4/ the Company had total land reserves of mn sq.m. with an average cost of approximately RMB1,992 per sq.m. as at 30 Jun Investment suggestion: The Company's land reserves are mainly in tier-1 / tier-2 / international cities. The debt structure is improving. The Company is likely to possess a positive fundamental outlook. The Company s current investment rating is Accumulate and the target price is HK$2.63, which implies a 61% discount to its 2017E NAV and also implies 4.2x underlying 2017 PER and 0.6x 2017 PBR. With the valuation recovery for the property sector, the Company should justify lower NAV discount. In addition, the Company has entered into the list of HK-SZ connection, thus leading to positive effects on its valuation. We will revise up our target price and overview our investment rating in our next company report. Modern Land (01107 HK): Land Acquisition in Wuxi Analyst: Van Liu What happened: Modern Land ( the Company ) has announced a land acquisition on 16 Aug Sushen Lvse (an indirect wholly-owned subsidiary of the Company) (as purchaser) entered into the Equity Transfer and Debt Settlement Agreement with the Vendors, whereby Sushen Lvse has conditionally agreed to acquire 100% equity interest of the Target Company from the Vendors at the Consideration of approximately RMB469,000,000. The target company developed a land in Wuxi for residential use with total estimated GFA of approximately 125,801 sq.m. Comments and Views: We estimate the unit land cost to be RMB3,728 per sq.m. Thus, this land acquisition is supposed to be not demanding. In addition, this land acquisition will increase the Company s future saleable resources and support its future contracted sales. Investment suggestion: We think the degree of slowing down is supposed to be lower than that of the property sector average due to its green product pipelines. Moreover, the Company s updated energy-saving and heating and cooling systems should provide a higher premium on its products. Meanwhile, the Company's valuation is attractive. Currently, our investment rating is Buy and the target price is HK$1.81, which represents a 38% discount to its 2017E NAV and also implies 4.7x 2017 underlying PER and 0.8x 2017PBR. See the last page for disclaimer Page 3 of 11

4 Morning Tencent (00700 HK): 2Q17 Net Profit Up 70% YoY, Beat Expectations Analyst: Ricky Lai What happened: Tencent announced the 2Q17 results with the followings: RMB YoY YoY Total revenue 56.6 Billion 59% Gross Profit Margin 50.0% (7.3 ppt) Shareholder s profit 18.2Billion 70% Operating Profit Margin 39.9% (0.2ppt) EPS % Net Profit Margin 39.3% 1.0ppt Source: the Company. Comments and Views: Tencent s 2Q17 results were beat expectations, with 70% yoy growth in net profit, driven by robust online game revenue and advertising revenue. Online game revenue grew 39% yoy, contributed by strong game titles such as Honour of Kings, Dragon Nest Mobile and TLBB. Online advertising revenue surged 55% yoy, thanks to video services, Weixin Moments and news feeds advertising in news platforms. 2Q17 gross margin was dragged down by 7.3 ppt yoy due to higher revenue proportion from lower margin mobile games and cloud computing services. Honour of Kings ranked the first position in China s online game market and will further leverage its advantage to overseas, which is expected to boost online game revenue growth. Tencent s video platforms are well received by users thanks to the launch of self-produced videos and licensed videos. Advertising revenue growth can be sustained with large user base of weixin and better video content. We will revise up the Company s earnings estimations. Investment suggestion: The Company s present investment rating is Buy and TP of HK$ We will revise up the Company s TP. China Unicom (00762 HK): 1H17 Net Profit Up 69.0% YoY, In-Line with Expectation, Mixed Ownership Reform Details Announced Analyst: Ricky Lai What happened: China Unicom announced 1H17 results with the followings: RMB YoY YoY Total Revenue Billion (1.5%) Net margin 2.0% 1.0ppt Shareholder s Profit 2.4 Billion 69.0% EBITDA margin 35.1% 0.8 ppt EBITDA 43.6 Billion 5.5% EPS % Source: the Company. Comments and Views: China Unicom s 1H17 results were in-line with expectations, with 69% yoy growth in net profit, driven by mobile service revenue growth and margin improvement. Mobile service revenue grew 5.2% yoy in 1H17 due to larger 4G user base with ARPU improvement. Mobile ARPU was RMB48.0, up 3.4% yoy, and we forecast the growth rate will slow down in 2H17 due to the launch of unlimited data plans and the trim of service tariff. EBITDA margin grew 0.8 ppt yoy thanks to the reduction of handset subsidies. The Company has announced the details of the mixed ownership reform that China Unicom will issued new A-shares for a number of companies (including Tencent, Alibaba, Baidu, and others) with the consideration of no more than RMB61.7 Billion and the overall new shares represent 35.2% of total number of A shares. China Unicom is expected to user the proceeds for 4G network upgrade and 5G network development. The participation of internet companies are already anticipated by market and we think these internet companies may launch related telecom products to boost user adoption. Investment suggestion: The Company s present investment rating is Reduce and TP of HK$9.30. See the last page for disclaimer Page 4 of 11

5 Morning The Company is trading at 42x FY17 PER, which is not attractive. China Dongxiang (03818 HK): 1H17 Top Line Missed but Bottom Line In Line with Extremely High Special Dividend Analyst: Terry Hong What happened: China Dongxiang ( the Company ) announced its 1H17 financial results as followings: (RMB) 1H16 1H17 YoY Revenue (mn) % Net profit (mn) % Basic EPS % Source: the Company, Guotai Junan International Comments and Views: The Company s 1H17 revenue accounted for 39.0% of previous our full year forecast, which was lower than expected. Revenue decline was mainly due to the decrease of revenue from wholesale channel and revenue from Japan operations, which dropped YoY by 6.2% and 24.4%, respectively. E-commerce business increased by 25.0% YoY and accounted for 21.4% of total revenue, up from 16.5% in the same period last year. The YoY increase in net profit was mainly attributable to the Company's investment segment. Gain from investment segment increased by 15.3% YoY to RMB552 million, which was equivalent to 88.1% of total revenue. Excluding gain from investment segment, adjusted net profit from the Company's core sportswear business dropped by 47.0% YoY to RMB36 million, which was significantly worse than expected, mainly due to increased net finance expenses. The Company declared interim dividend and special dividend of RMB2.90 cents per share and RMB20.22 cents per share, respectively, representing a total payout ratio of 238.8%, which is extremely high and better than expected. Investment suggestion: China Dongxiang is expected to maintain stable growth in its core sportswear business during , while most of its profit will be generated from its investment segment. The Company s investment operations have been successful so far, which results in high dividend payment. Our current TP is HK$1.80 and investment rating is Buy. We may raise our TP and review the investment rating in our next company report. Latest Reports China Gold International (02099 HK):2017 Interim Results Beat Expectations, Maintain Neutral Rating: Neutral 6-18m TP: HK$12.20 Analyst: Kevin Guo Report Date: Summary The 2017 interim results of the Company were better than our estimations due to lower copper production costs and higher metal prices. Total revenue of the Company increased by 33% yoy to US$ million, net profit attributable to shareholders was US$ 27.0 million. Revise up copper price assumptions, but maintain gold price assumptions unchanged. We expect gold price to remain under pressure in 2017 as the U.S. interest rate hike pace accelerates. We expect copper prices to rebound in the second half of 2017 due to improved demand prospects. We expect the average annual gold price to be around US$ 1,200/oz and the average copper price may be around US$ 5,400/t-US$ 5,600/t. Maintain mining output assumptions unchanged. In 2017, the Company plans to produce 218,700 oz of mined gold and 36,800 tons of mined copper. The 2017 output plan of mined gold and copper is about 3.5% and 100.9%, See the last page for disclaimer Page 5 of 11

6 Morning higher than that of 2016, respectively. The Company reiterated its output target unchanged, and we are confident that the Company will fulfill its plan. Revise up TP to HK$ but maintain Neutral investment rating. Newly Published Key Economic Data for China, US and Europe (David Liu) 中美欧最新公布的重要经济数据 ( 刘静骁 ) Country 国家 U.S. 美国 U.S. 美国 Europe 欧洲 Indicator 指标名称 Total Net TIC Flows (bn USD) 6 月国际资本流动净额 ( 十亿美元 ) Housing Starts annualized (SA, '000) 年化新屋开工量 ( 季调, 千套 ) 2Q Euro area GDP yoy (Preliminary) 第二季欧元区 GDP 同比 ( 初值 ) Data Period 数据期间 June 6 月 July 7 月 2Q 第二季 Current Value 当期值 MoM / QoQ 环比变动 YoY 同比变动 Market Consensus 市场一致预期 7.7 (85.9%) (96.3%) n.a. 1,155 (4.8%) (5.6%) 1, % 0.1ppts 0.5ppts 2.1% Source: U.S. Treasury, U.S. Census Bureau, Eurostat, Bloomberg. 数据来源 : 美国财政部 美国人口普查局 欧盟统计局 彭博 Chinese Translation 中文翻译 行业和公司焦点 吉利汽车 (00175 HK):2017 年上半年净利润增长 127.7%, 大致符合预期 分析员 : 马守彰 事件描述 : 吉利汽车 (00175 HK) 公布了 2017 年上半年的业绩 摘要如下 : 2017 年上半年 同比 货币 ( 人民币百万 ) (%) ( 人民币 ) 收入 39, % 每股股息 n.a 归属于公司股东的净利润 4, % 基本每股收益 ( 人民币 ) % 观点评论 : 汽车销量受到新的 SUV 系列推动出现显著提升而致业绩增长 基于 2016 年上半年较低的比 较基数以及新车型的推出, 吉利的销售在 2017 年上半年表现强劲, 销量达 530,627 辆, 同比大幅增长 89.3% 吉利于 2016 年二季度和三季度推出三款 SUV( 博越 远景和帝豪 GS), 自 2016 年下半年才全 面上升 由于这几款 SUV 售价较高且占 2017 年上半年销售比例跳涨至 45.4%(2016 年上半年 :9.5%), 因此平均售价同比大幅提升 16.4% 经营杠杆改善, 致毛利率增 1.4 个百分点至 19.2%; 销售及管理费 用得到较好控制, 占收入百分比同比分别降低 0.1 和 0.9 个百分点, 致营业利润率增 2.5 个百分点 同样 值得关注的是, 应占合营企业收益为 21.6 百万元, 是自 2015 年成立以来首次录得盈利, 表明汽车金融 业务正获得增长动力 投资建议 :2017 年上半年业绩表明吉利汽车的产品受到市场的热烈欢迎, 并已形成向高端领域扩张的基 础 而接下来的催化剂在于新品牌的表现, 我们预计合营企业成立后市场会反应热烈 我们重申 买入 的投资评级, 我们将在下一份报告上调盈利预测 See the last page for disclaimer Page 6 of 11

7 Morning 中国奥园 (03883 HK): 2017 年上半年净利润同比升 32.4% 至人民币 亿元, 符合我们预期 分析员 : 刘斐凡 事件描述 : 中国奥园 ( 公司 ) 公布了 2017 年上半年业绩如下 : 货币单位 ( 人民币 ) 同比 同比 收入 亿元 25.8% 净资本负债率 63.0% 12.3 百分点 净利润 亿元 32.4% 毛利率 26.9% 1.9 百分点 每股盈利 元 37.3% 资料来源 : 公司 观点评论 : 公司净利润符合我们预期 如果剔除投资物业的重估增值和汇兑损益, 核心净利润符合我们的预期 业绩评论核心观点如下 :1/ 由于合约销售同比增长 62.0% 且收入同比增 25.8%, 公司保持快速增长 2/ 我们看到了稳定的毛利率 3/ 由于净资产负债率为 63.0%, 杠杆保持了健康水平 4/ 公司在 2017 年 6 月 30 日末拥有总土储 1,712 万平米, 且土地单位成本为人民币 1,992 元每平米. 投资建议 : 公司的土地储备主要位于一线 / 二线 / 国际城市 债务结构正在改善 公司目前投资评级为 收集, 目标价为 2.63 港元, 相当于其 2017 年 NAV 有 61% 的折让, 也相当于 4.2 倍 2017 年的核心市盈率和 0.6 倍 2017 年的市净率 随着地产行业估值恢复, 公司应适用更低的 NAV 折让 另外, 公司进入了深港通名单, 对其估值带来正面影响 因而, 我们将在下一篇公司报告中上调目标价并检讨投资评级 当代置业 (01107 HK): 在无锡的土地收购分析员 : 刘斐凡 事件描述 : 当代置业 ( 公司 ) 在 2017 年 6 月 29 日宣布了一项土地收购 本公司之间接全资附属公司苏深绿色 ( 作为买方 ) 与卖方订立股权转让及债务清偿协议, 据此, 苏深绿色已有条件同意自卖方购入目标公司之 100% 股权, 代价约为人民币 469,000,000 元 目标公司开发一块在无锡用作住宅用途的土地, 总建面约为 125,801 平米 观点评论 : 我们测算单位土地成本为人民币 2,220 元每平米 因而, 此次土地收购并不贵 另外, 此次土地收购将增加公司未来的可售货源并支持公司未来的合约销售 投资建议 : 由于其绿色产品线, 我们认为合约销售的下降程度应会低于地产行业平均 而公司升级后的节能和加热冷却系统应该能够为公司的产品提供更高的溢价 与此同时, 公司估值吸引 目前, 我们的投资评级为 买入, 目标价为 1.81 港元, 相当于 2017 年 NAV 有 38% 的折让, 也相当于 4.7 倍 2017 年的核心市盈率和 0.8 倍 2017 年的市净率 腾讯 (00700 HK): 2017 年第 2 季度净利同比增长 70%, 好于预期 分析员 : 黎柏坚 事件描述 : 腾讯公布 2017 年第 2 季度业绩为以下 : 元人民币 同比 同比 总收入 566 亿 59% 毛利率 50.0% (7.3 百分点 ) 股东净利 182 亿 70% 营利率 39.9% (0.2 百分点 ) 每股净利 % 净利率 39.3% 1.0 百分点 资料来源 : 公司 See the last page for disclaimer Page 7 of 11

8 Morning 观点评论 : 腾讯的 2017 年第 2 季度业绩好于预期, 净利同比升 70%, 是由于强劲的网络游戏收入和广告收入的推动 在线游戏收入同比增长 39%, 是受益于受欢迎的游戏, 其中包括王者荣耀 龙之谷和天龙八部等 在线广告收入同比增长 55%, 因视频服务 微信朋友圈和新闻广告的贡献 由于较低毛利率的手机游戏和云计算服务收入比例增长, 毛利率同比下降了 7.3 个百分点 王者荣耀在中国网络游戏市场排名第一, 并将进一步利用其优势在海外推广, 有望提升网络游戏收入的增长 由于推出自制视频和受权视频的贡献, 腾讯的视频平台受到用户的欢迎 预期广告收入增长可维持, 因庞大的微信用户数和更好的视频内容 我们将上调公司的盈利预测 投资建议 : 公司目前的投资评级为 买入 及目标价为 港元 我们将上调公司的目标价 中国联通 (00762 HK): 2017 年上半年纯利同比增长 69%, 符合预期, 公布混改的细节 分析员 : 黎柏坚 事件描述 : 中国联通公布 2017 年上半年业绩为以下 : 元人民币 同比 同比 整体收入 1,382 亿 (1.5%) 净利率 2.0% 1.0 百分点 股东净利 24 亿 69.0% EBITDA 率 35.1% 0.8 百分点 EBITDA 436 亿 5.5% 每股净利 % 资料来源 : 公司 观点评论 : 中国联通上半年业绩符合预期, 净利润同比增长 69%, 是受移动服务收入增长和利润率提升 的推动 移动服务收入在 17 年上半年同比增长 5.2%, 因 4G 用户数量增加和 ARPU 改善 移动 ARPU 为 48.0 元, 同比升 3.4%, 预计下半年增速将放缓, 因无限数据计划的推出和服务资费的下调 由于手机 补贴的减少,EBITDA 率同比增长 0.8 个百分点 公司同时公布混改的细节, 中国联通将为多家公司 ( 包 括腾讯, 阿里巴巴, 百度等 ) 发行新股 A 股, 总代价不超过人民币 617 亿元, 新股占 A 股总数的 35.2% 中国联通将资金用于改善 4G 网络和发展 5G 网络 互联网公司参与混改已经被市场所预期, 我们认为这 些互联网公司可能会推出相关的电信产品, 以促进用户增加 投资建议 : 公司目前的投资评级为 减持 及目标价为 9.30 港元 公司目前的股价为 42 倍 2017 年市盈 率, 并不吸引 中国动向 (03818 HK): 2017 年上半年收入不及预期但盈利符合预期并宣派极高的特别股息 分析员 : 洪学宇 事件描述 : 中国动向 ( 公司 ) 公布了其 2017 年上半年财务数据如下 : ( 人民币 ) 1H16 1H17 YoY 收入 ( 百万 ) % 净利润 ( 百万 ) % 每股净利 % 资料来源 : 公司, 国泰君安国际 观点评论 : 公司 2017 年上半年收入占我们全年盈利预测的 39.0%, 低于预期 收入下滑主要由于来自批 发渠道和日本分部的收入减少, 分别同比下滑 6.2% 和 24.4% 电商业务收入同比增长 25.0%, 占收入的 比重从去年同期的 16.5% 上升至 21.4% 净利润的同比上升主要归功于公司的投资分部 来自投资分部 的收益同比增长 15.3% 至 5.52 亿元人民币, 相当于总收入的 88.1% 剔除投资分部收益后, 来自公司核 心运动服饰业务的经调整后净利润同比下滑 47.0% 至 36 百万元人民币, 显著差于预期, 主要是由于净财 See the last page for disclaimer Page 8 of 11

9 Morning 务费用大幅增加 公司宣派了中期股息和特别股息分别为每股 元人民币和每股 元人民币, 合共相当于 238.8% 的派息比率, 属于极高的水平并好于我们预期 投资建议 : 我们预期中国动向将在其核心运动服饰业务上保持平稳增长, 而其大部分利润将由投资分部产生 至今为止公司的投资业务经营比较成功, 这使得公司派息比较高 目前我们的目标价为 1.80 港元, 投资评级为 买入 我们或将在下一份公司报告中上调目标价并相应检讨投资评级 最新报告 中国黄金国际 (02099 HK):2017 年中期业绩超出市场预期, 维持 中性 评级评级 : 中性 6-18m 目标价 : HK$12.20 分析员 : 郭勇报告日期 : 报告摘要 由于更低的铜生产成本以及更高的金属价格, 公司 2017 年中期业绩高于我们的预期 公司总收入同比增长 33% 至 百万美元, 录得 27.0 百万美元的净利润 上调铜价假设, 但维持金价假设不变 由于美联储加息步伐的加快, 我们预计金价在 2017 年将承压 由于需求前景改善, 我们预计铜价在 2017 年下半年反弹 我们预计黄金全年均价在 1,200 美元 / 盎司左右, 铜全年均价在 5,400-5,600 美元 / 吨 维持矿产品产量假设不变 公司计划 2017 年生产 218,700 盎司矿产金和 36,800 吨矿产铜 2017 年矿产金和矿产铜的产量计划比 2016 年分别高 3.5% 和 100.9% 公司重申其产量目标不变, 我们对公司完成其计划有信心 上调公司目标价至 港元, 维持 中性 评级 See the last page for disclaimer Page 9 of 11

10 Morning Research Department 研究部 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) Square Chui 徐惠芳 Futures 期货 [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) Gary Ching 程嘉伟 Market Strategy 市场策略 [email protected] (852) Jake Wang 汪昌江 Wind & others, Market Strategy 风电及其他 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 Research Assistant 研究助理 [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) 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 Page 10 of 11

11 Morning Company Rating Definition The Benchmark: Hong Kong Hang Seng Index / NASDAQ Composite Index Time Horizon: 6 to 18 months Rating Definition Buy Relative Performance >15%; or the fundamental outlook of the company or sector is favorable. Accumulate Relative Performance is 5% to 15%; or the fundamental outlook of the company or sector is favorable. Neutral Relative Performance is -5% to 5%; or the fundamental outlook of the company or sector is neutral. Reduce Relative Performance is -5% to -15%; or the fundamental outlook of the company or sector is unfavorable. Sell Relative Performance <-15%; or the fundamental outlook of the company or sector is unfavorable. Sector Rating Definition The Benchmark: Hong Kong Hang Seng Index / NASDAQ Composite Index Time Horizon: 6 to 18 months Rating Definition Outperform Relative Performance >5%; or the fundamental outlook of the sector is favorable. Neutral Relative Performance is -5% to 5%; or the fundamental outlook of the sector is neutral. Underperform Relative Performance <-5%; or the fundamental outlook of the sector is unfavorable. DISCLOSURE OF INTERESTS (1) Except for Shenzhen International Holdings Limited (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 SMI Holdings Group (00198 HK), Guotai Junan International Holdings Limited (01788 HK), Binhai Investment Company Limited (02886 HK), Link Holdings Limited (08237 HK), GFI MSCI A I-R (CNY) (83156 HK), GFI MSCI A I (03156 HK) and CAM SCSMALLCAP (03157 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 Huaneng Renewables- H shares (00958 HK) / Huaneng Power- H shares (00902 HK) / Charmacy Pharmaceutical- H shares (02289 HK) / Huishang Bank- H shares (03698 HK) / Xiao Nan Guo Restaurants (03666 HK) / Evergrande Real Estate (03333 HK) / GOME Electrical Appliances (00493 HK) / Dongjiang Environmental- H shares (00895 HK) / China Singyes Solar Technologies (00750 HK) / China Aoyuan Property (03883 HK) / Modern Land (01107 HK) / China Wood Optimization (01885 HK) / Anhui Conch Cement- H shares (00914 HK) / 361 Degrees (01361 HK) / SMI Holdings Group (00198 HK) / Powerlong Real Estate (01238 HK) / Tianyun International (06836 HK) / Sundart Holdings Ltd. (01568 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 Page 11 of 11