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Morning Research Department Table of Contents 目录 29 February 2016 Weekly Overview and Trading Focus 上周回顾和本周交易提示 Industry and Company Focus 行业和公司焦点 Sun Art Retail (06808 HK): 2015 Shareholders Profit Decreased 15.7% YoY 高鑫零售 (06808 HK): 2015 年股东净利同比下降 15.7% Ping An (02318 HK): CSRC Approved Ping An Bank s (000001 SZ) RMB 20 Billion Preference Shares Issue 中国平安 (02318 HK): 中国证监会核准平安银行 (000001 SZ) 人民币 200 亿元优先股发行 Latest Reports 最新报告摘要 Company Name 公司名称 Netease Code 代码 NTES US Title 标题 New Game Titles Launched to Refresh Portfolio, Buy TP 目标价 Chg 变动 Rating 评级 Chg 变动 EPS Est. Change? 盈利预测是否改变 US$200.00 Buy -- Y 网易 NTES US 新游戏投入以更新组合, 买入 US$200.00 买入 -- 是 Insurance Sector 保险业 China Resources Cement 01313 HK Flash Note: 2016 January Premium Income Wrap: Life Up 73.6% Yoy, Growth in P&C Premiums Income Tame 快讯 :2016 年 1 月保费收入小结 : 寿险同比增幅为 73.6%, 财产险同比增幅缓和 Weaker Demand and Bleak Industry Outlook, Neutral -- Outperform -- N -- 跑赢大市 -- 否 HK$2.30 -- Neutral -- Y 华润水泥控股 01313 HK 更弱的需求和暗淡的行业前景, 中性 HK$2.30 -- 中性 -- 是 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 10

HSI Performance HSCEI Performance 29,000 16,000 27,000 25,000 14,000 12,000 23,000 21,000 19,000 17,000 Feb/15 May/15 Aug/15 Nov/15 Feb/16 Source: Bloomberg 10,000 8,000 6,000 Feb/15 May/15 Aug/15 Nov/15 Feb/16 Source: Bloomberg Weekly Overview and Trading Focus (Gary Ching) 上周回顾和本周交易提示 ( 程嘉伟 ) Overview of last week 上周回顾 Hong Kong market went up slightly last week. HSI once dragged below 19,000 to 18867and recovered afterward, with overall HSI up 0.4% to 19,364, while HSCEI was down 1.0% to 8,034. G20 Finance Ministers and Central Bank Governors meeting was held in Shanghai last week, there was no coordinated stimulus being formed, but after-meeting statement indicated the main economic risks in 2016 included the trend of Japanese Yen, intensive geopolitical situation, remarkable fall in commodities price, high volatility of capital flows, the impact of possible UK exit of Europe and increasing number of middle-east refugee immigrants in some countries. Those factors raised the risks of global economic downturn and instability. Likewise, the statement emphasized that all member nations would not participate in competitive currency devaluation, and opposed to rely solely on monetary policy to boost up economies. They also vowed to strengthen coordination of exchange rate policy and communication between nations, take further actions to achieve the common goal in global economic growth, including policies in monetary, fiscal and structural reform. On the other hand, the SAC has unveiled 10-measure in SOE reform. Its aim was to further intensify and deepening the SOE reform, 10 pilot measures would be fully implemented, while accelerated exploration in areas, such as M&A, classified regulation, optimization of SOE structure, and improvement on SOE corporate governance structure. Spot exchange rate of Onshore Renminbi against U.S. dollar was down 181 bps to 6.5404. PBoC withdrew RMB80 billion liquidity via open market. Short-term SHIBOR increased remarkably with overnight and 2-week SHIBOR up 110 bps and 188 bps respectively, while middle term and long term SHIBOR slightly decreased. The dollar index increased 1.6% wow to 98.148. Crude oil went up gradually last week; Crude oil New York futures price has risen to US$33.07 per barrel at most, and overall soared 10.6% wow to US$32.78 per barrel. The result of January U.S. Durable Goods Orders was outperformed, U.S. markets became stabilized with S&P 500 up 1.6% wow to 1,948 and Dow Jones Industrial increased 1.5% wow to 16,640. 上周港股反覆微升, 恒指在上周四曾受内地股市急跌拖累, 跌穿 19,000 点关口至 18,867 点, 之后回升, 累计上升 0.4% 至 19,364 点, 国指累计下跌 1.0% 至 8,034 点上周 20 国集团 (G20) 财经首长及央行行长会议在上海举行, 会议中没有订立任何实质协议, 会后声明表示今年主要经济风险, 包括日圆走势地缘政治情况紧张商品价格大幅下跌资本流动大幅波动英国可能脱欧带来的冲击和数量大增的中东难民为部分国家带来负面影响, 均提高全球经济的下行风险和不稳定性声明亦强调成员国不会参与竞争性货币贬值, 并反对单靠货币政策来提振经济承诺加强成员国在汇率政策协调和沟通, 采取更多行动, 包括使用货币财政和结构性改革政策, 来实现全球增长的共同目标此外, 国资委公布了国企十项改革试点方案, 主要包括将进一步加大改革力度和深度, 十项试点将从点到面全面推开, 并购重组分类监管优化国有企业结构布局完善公司法人治理结构等多个领域将加快探索上周在岸人民币对美元即期汇率累计下跌 181 个基点收报 6.5404 上周人民银行在公开市场净回笼 800 亿人民币短期 SHIBOR 显着上升, 其中隔夜和 2 周期间 SHIBOR 上升 110 个基点和 188 个基点, 中期和长期 SHIBOR 则轻微回落美元指数上升 1.6% 至 98.148 国际油价上周逐步回稳, 纽约期油曾上升至每桶 33.07 美元, 累计升 10.6% 至每桶 32.78 美元美国上周公布 1 月份耐用品订单数据表现强劲, 美国股市继续企稳标准普尔 500 指数全周累计上升 1.6% 至 1,948 点, 道琼斯指数全周累计上升 1.5% 至 16,640 点 See the last page for disclaimer Page 2 of 10

Trading focus of this week 本周交易提示 Key economic data and events Date Country Data / events Market Consensus Previous Value Change February-29 U.S. February ISM Manufacturing 48.5 48.2 0.6% February-29 Europe February CPI Core (YoY) 0.9% 1.0% (0.1 ppts) March-01 China February Manufacturing PMI 49.4 49.4 0.0 ppt March-03 U.S. January Factory Orders SA 2.1% (2.9%) 5.0 ppts (MoM) March-03 U.S. January Durable Goods Orders n.a. 4.9% n.a. SA (MoM) (Final) March-04 U.S. January Trade Balance (bn (43.80) (43.36) (1.0%) USD) March-04 U.S. February Change in Nonfarm 193 151 27.8% Payrolls ('000) March-04 U.S. February Unemployment Rate 4.9% 4.9% 0.0 ppt Note: All the forecasts in the above table are based on market consensus from Bloomberg. 重要经济数据和事件日期国家数据 / 事件市场一致预期前值变化 2 月 29 日美国 2 月 ISM 制造业指数 48.5 48.2 0.6% 2 月 29 日欧洲 2 月核心 CPI ( 同比 )( 初值 ) 0.9% 1.0% (0.1 ppts) 3 月 01 日中国 2 月制造业 PMI 49.4 49.4 0.0 ppt 3 月 03 日美国 1 月经季调工厂订单 ( 環比 ) 2.1% (2.9%) 5.0 ppts 3 月 03 日美国 1 月经季调耐用品订单 ( 環比 )( 終 n.a. 4.9% n.a. 值 ) 3 月 04 日美国 1 月贸易余额 ( 十亿美元 ) (43.80) (43.36) (1.0%) 3 月 04 日美国 2 月非农就业人数增减 ( 千人 ) 193 151 27.8% 3 月 04 日美国 2 月失业率 4.9% 4.9% 0.0 ppt 注 : 上表中所有预测都基于彭博的市场一致预期 Newly Published Key Economic Data for China, US and Europe 中美欧最新公布的重要经济数据 Country Indicator 国家指标名称 University of Michigan U.S. Consumer 美国 Sentiment (final) 密西根大学消费者信心 ( 終值 ) Source: U.S. University of Michigan, Bloogberg 数据来源 : 美国密西根大学彭博 Data Period 数据期间 February 2 月 Current Value 当期值 MoM / QoQ 环比变动 YoY 同比变动 Market Consensus 市场一致预期 91.7 (0.3%) (3.9%) 91.0 See the last page for disclaimer Page 3 of 10

Industry and Company Focus Sun Art Retail (06808 HK): 2015 Shareholders Profit Decreased 15.7% YoY Analyst: Andrew Song What happened: Sun Art Retail posted its 2015 annual results yesterday. Key fundamentals are as following: (RMB m) Amount yoy Amount yoy Turnover 96,414 +5.0% Gross Margin 23.3% +0.4ppt Gross Profit 22,463 +7.0% EPS (RMB) 0.26-15.7% Shareholder s Profit 2,443-15.7% DPS (RMB) 0.16 Source: the Company. Comments and Views: The Company s 2015 turnover rose 5.0% YoY and gross profit increased by 7.0% YoY. However shareholders profit declined by 15.7% YoY, slightly missed our expectation. In the context of unfavorable macro environment, the Company slowed down its pace in opening new stores. 38 new stores were opened in the period, less than the management s previous guidance of 50. Due to the slower growth of the overall consumer market and the more diversified channels available to customers, SSSG was -3.6% (vs. -1.6% in 2014), in line. Gross margin improved by 0.4 ppt YoY to 23.3%, due to products category mix upgrade, and economies of scale which was incurred by business expansion. Nevertheless, operating margin and net profit margin dropped by 0.9 ppt and 0.7 ppt YoY, respectively, mainly due to the loss of new stores and E-commerce. Investment suggestion: Sun Art s last closing price is HK$4.44 which trades at 17.1x 2015 PER. We have an investment rating of Neutral on the Company with TP of HK$6.29. Considering the intensified competition and relatively weak economy growth in China, we will revise down the earnings forecast and target price in the coming report. Ping An (02318 HK): CSRC Approved Ping An Bank s (000001 SZ) RMB 20 Billion Preference Shares Issue Analyst: Dayton Wang What happened: Ping An s key listed subsidiary: Ping An Bank (000001 SZ) announced after the market closed on February 27 that CSRC had approved the Bank s RMB 20 billion preference shares issue with a validity period of six months. Comments and Views: According to the issue proposal that was disclosed last November, the Bank proposed to issue no more than 200 million preference shares with a notional value of RMB 100 each. The Bank intended to raise no more than RMB 20 billion through the issue and the dividend yield would be fixed and to be set on a basis of comparative transactions in the market. We see two key static impacts on the Bank s 2016F financials: 1/ a reduction in the shareholders profit as an estimated dividend payment of RMB 1 billion (~assuming 5% dividend yield), which would result in a 3.3% downside in our 2016F EPS of RMB 2.090 (~ post event EPS of RMB 2.020). 2/ Enhancement in the Bank s capital strength as the funds raised through the issue of preference shares could be booked under other tier-1 capital, which could lead to an estimated increase of 127 bps in CAR (~posted event CAR of 12.96%). Investment suggestion: We expect the transaction to be closed successfully as the Company s asset management arm would subscribe 58% of the issue. The Bank currently trades at 0.76x 2016F PB, representing an 11.8% discount to the peers average of 0.86x. Ping An s shares closed at HKD 33.40 on February 27, up notably by 3.25% during the day. Ping An is currently our sector top pick with an investment rating of Buy and a target price of HKD 49.90 per share (~49.4% absolute upside potential against current market price). See the last page for disclaimer Page 4 of 10

Latest Reports Netease (NTES US): New Game Titles Launched to Refresh Portfolio, Buy Rating: Buy 6-18m TP: US$200.00 Analyst: Ricky Lai Report Date: 2016-02-26 Summary 4Q15 results beat expectations, due to better than expected mobile game contributions. Revise up FY16-17 online game revenue estimates by 7.0%/ 9.0%, respectively. 4Q15 online game revenue increased by over 103% yoy thanks to the solid contributions by the launch of new game titles and sustainable popular mobile games. Netease is going to launch a strong pipeline in FY16 to boost online game revenue growth. Advertising revenue in FY16 will be propelled by the Olympic Games. Advertising customers will spend more on advertising expenses during the Olympic Games period to boost their business growth, which will drive up Netease s advertising revenue, especially revenue contributed from Netease News App. Maintain the investment rating of Buy and raise the TP from US$ 195.00 to US$ 200.00. FY16-17 earnings per ADSs have been revised up by 4.6%/ 5.2%, respectively. The new TP represents 21.6x FY16 PER, 20.1x FY17 PER, 18.7x FY18 PER and 1.92 FY15-18 PEG. We have a positive outlook on the Company in light of its popular mobile game titles and strong game pipeline 2016. Flash Note: Insurance Sector:2016 January Premium Income Wrap: Life Up 73.6% Yoy, Growth in P&C Premiums Income Tame Rating: Outperform 6-18m TP: n.a. Analyst: Dayton Wang Report Date: 2016-02-26 Summary Human insurance premium income up 72.3% yoy to RMB 545.1 billion in this year s jumpstart season, whereas P&C insurance premium income recorded a tame yoy growth of 9.9%. CIRC s statistics show that the total premium income for China s insurance sector was RMB 637.7 billion in January, registering a yoy gain of 59.2%. Human insurance sector (~consisting of life, health and accident) exhibited strong growth in premium income in January, although the capital market conditions in China were relatively weak over the same period. Most of our covered listed life insurers posted above expectation yoy growth rate in January premium income, 59% on average, except for New China Life (01336 HK), which recorded a 25% yoy decline on a possible change in product mix and distribution strategy. Among the ones who recorded positive yoy growth, PICC Life achieved the highest growth rate of 110.4%. Most of the covered listed life insurers relied on the sale of personal annuity products for the volume play in the jumpstart season. We believe that New China Life s bancassurance distribution channel might have lost some capacity, leading to a possible large drop in bancassurance premiums over the period. A decrease in bancassurance premiums may seem to be positive for New China Life, as it could be regarded an initiative to boost the overall NBM, but it is achieved at the expenses of less operating cash flow, in our view. Insurers investment accounts recorded RMB 204 billion in new deposits in January. Statistics show that new deposits came from our covered listed life insurers, accounted less than 17% of the sector s total, which was in-line with the past trend, suggesting that they are less exposed to universal insurance products. We maintain Outperform sector investment rating and reiterate Ping An (02318 HK) as our sector top pick on its defensiveness. Sector historical P/EV currently trades below 1.0x at 0.97x. Our covered listed insurers will be releasing their FY15 financial results towards the end of March. For a defensive investment strategy under current market condition, we recommend Ping An with an investment rating of Buy and a target price of HKD 49.90 per share. See the last page for disclaimer Page 5 of 10

China Resources Cement (01313 HK): Weaker Demand and Bleak Industry Outlook, Neutral Rating: Neutral 6-18m TP: HK$2.30 Analyst: Sean Xiang Report Date: 2016-02-26 Summary Poor downstream demand will continue to put pressure on cement price. Although infrastructure investment growth in the majority of CRC's operating regions are expected to remain strong and outperform the national infrastructure growth rate, declining property investment growth implies that the cement demand will continue to be weak in the coming years. As an aggregate new capacity of 12.15Mt/6.20Mt will come into operation in 2016/2017 in the two provinces of Guangdong and Guangxi, up 4.8%/2.4% YoY, we think that cement price in these regions will be under pressure in FY16. Consolidation in Yunnan is complete. CRC has injected RMB2.2 billion into Kunming Iron & Steel Building Material to acquire 50% of its equity. The new entity is expected to have an annual production capacity of 30Mt, and will become the largest producer in Yunnan. The top three cement producers now account for nearly 50% of the market share in Yunnan, leading to a favorable industry competition environment in Yunnan. Our estimates indicate that approximately HKD542 million in foreign exchange loss will be recorded for a 3% depreciation in RMB to USD in FY16, which brings huge uncertainty to CRC's earnings. As such, we rate CRC "Neutral" and our TP is HKD2.30, which represents 8.0x/7.0x/6.4x 2015/2016/2017 PER. Chinese Translation 中文翻译行业和公司焦点高鑫零售 (06808 HK): 2015 年股东净利同比下降 15.7% 分析员 : 宋涛事件描述 : 高鑫零售公布了 2015 年年度财务报告, 主要指标表现如下 : ( 人民币百万元 ) 总额按年增长总额按年增长营业额 96,414 +5.0% 毛利率 23.3% +0.4 个百分点毛利 22,463 +7.0% 每股净利 ( 人民币 ) 0.26-15.7% 股东净利 2,443-15.7% 每股股息 ( 人民币 ) 0.16 资料来源 : 公司观点评论 :2015 年公司营业额同比上升 5.0%, 毛利上升 7.0% 然而股东净利同比下降 15.7%, 略差于预期在宏观环境不佳的市场环境下, 公司放缓了开店速度,2015 年共开店 38 家, 少于管理层之前给出的指引 50 家因为消费市场的增速放缓和可供消费者选择的消费渠道增多, 同店销售倒退 3.6% (2014 年为 -1.6%) 毛利率提升 0.4 个百分点至 23.3%, 由产品结构升级和业务增长带来的规模效应所致但是经营利润率和净利率则分别减少 0.9 个百分点和 0.7 个百分点, 主要因为新店和电商的亏损投资建议 : 高鑫零售周五收市价为 4.44 港元, 相当于 17.1 倍 2015 年市盈率我们对高鑫零售的投资评级为中性, 目标价为 6.29 港元鉴于中国市场激烈的竞争情况与相对疲弱的经济走势, 我们将于下一份报告中下调公司盈利预测和目标价 See the last page for disclaimer Page 6 of 10

中国平安 (02318 HK): 中国证监会核准平安银行 (000001 SZ) 人民币 200 亿元优先股发行分析员 : 王庆鲁事件描述 : 中国平安上市子公司 : 平安银行 (000001.SZ) 在 2 月 27 日收市后公告该行已经获得中国证监会批复, 核准其发行人民币 200 亿元优先股, 有效期 6 个月观点评论 : 根据平安银行 2015 年 11 月的发行议案, 该行计划发行不超过 2 亿股优先股, 每股票面金额为人民币 100 元, 总共融资规模不超过人民币 200 亿元优先股的票面股息率将按照市场可比交易进行厘定我们预期对于该行 2016 年财务状况的主要影响有 :1/ 因拥有优先股股息约人民币 10 亿元的开支 (~ 假设股息率 5%),2016F 每股收益将有 3.3% 的降幅 (~ 降至人民币 2.020 元 );2/ 资本实力将得到增强融资所得将计算为其他一级资本, 预期将提高该行资本充足率 127 个基点 (~ 升至 12.96%) 投资建议 : 我们预期该行将成功发行, 平安资管将计划参与发行并将获得 58% 的份额平安银行 2016F 市净率为 0.76 倍, 较可比银行均值的 0.86 倍有 11.8% 的估值折让中国平安股价在 2 月 27 日收于每股 33.40 港元, 当日上涨 3.25% 中国平安目前为我们的行业首选, 投资评级买入, 目标价为 49.90 港元 (~ 对应市场价有 49.4% 的绝对上升空间 ) 最新报告网易 (NTES US): 新游戏投入以更新组合, 买入评级 : 买入 6-18m 目标价 : US$200.00 分析员 : 黎柏坚报告日期 : 2016-02-26 报告摘要 2015 财年第 4 季度业绩高于预期, 因高于预期的移动游戏收入贡献分别上调 2016-2017 财年在线游戏收入预测 7.0%/ 9.0% 2015 财年第 4 季度移动游戏的收入同比增 103%, 因推出新游戏和多款持续受欢迎的手机游戏网易在 2016 财年将会推出一系列新游戏以提高游戏收入的增长 2016 财年广告收入将因奥运会的举行而受到支持奥运会期间广告客户将花更多广告费用以提高品牌, 改善业务增长, 这将推动网易的广告收入, 特别是网易新闻应用程序的贡献维持投资评级为买入及目标价从 195.00 美元上调至 200.00 美元分别上调 2016-2017 财年每 ADS 盈利预测 4.6%/ 5.2% 新目标价相当于 21.6 倍 2016 年市盈率 20.1 倍 2017 年市盈率 18.7 倍 2018 年市盈率及 2015-2018 年 PEG 为 1.92 我们对公司有正面的观点, 因公司的手机游戏更受欢迎和更强的游戏组合 See the last page for disclaimer Page 7 of 10

快讯 : 保险业 : 2016 年 1 月保费收入小结 : 寿险同比增幅为 73.6%, 财产险同比增幅缓和评级 : 跑赢大市 6-18m 目标价 : n.a. 分析员 : 王庆鲁报告日期 : 2016-02-26 报告摘要人身险保费收入在今年 1 月开门红期间同比增长 72.3% 至人民币 5,451 亿元, 而财产险保费收入缓和增长 9.9% 保监会数据显示中国保险全行业总保费收入在 1 月达到人民币 6,377 亿元, 同比增长 59.2% 虽然期内中国资本市场表现疲弱, 但是由寿险健康险和意外险子行业组成的人身险行业保费收入同比增长依然强劲多数我们所覆盖上市寿险公司的 1 月保费收入录得了高于预期的同比增幅, 平均同比为 59%; 除了新华保险 (01336 HK) 出现同比下滑 25%, 原因可能是产品组合和营销策略的变化在录得同比增长的上市寿险公司中, 人保寿险同比增幅最高, 达到了 110.4% 多数险企的开门红主力产品为个人年金产品我们认为新华保险的银保营销规模有所下降, 可能造成了银保渠道保费收入出现大幅下降虽然从正面来看, 这可能是公司为了提高总体新业务利润率所采取的措施, 但会使其的经营性现金流出现下降 1 月保户投资款新增交费为人民币 2,040 亿元统计显示我们所覆盖的上市寿险公司的投资款新增缴费占行业总额的比例不足 17%, 和去年的趋势一致, 意味着上市寿险公司对万能险产品的敞口较低我们维持跑赢大市的行业投资评级, 行业首选为具有防御性的中国平安 (02318 HK) 板块历史 P/EV 乘数维持在低位并低于 1.0 倍至 0.97 倍覆盖上市保险公司将在 3 月下旬陆续公布 2015 财年业绩若根据当前的市场环境而采取防御策略, 我们推荐中国平安, 投资评级是买入, 目标价 49.90 港元华润水泥控股 (01313 HK): 更弱的需求和暗淡的行业前景, 中性评级 : 中性 6-18m 目标价 : HK$2.30 分析员 : 向宇豪报告日期 : 2016-02-26 报告摘要疲弱的下游需求将继续对水泥价格施压虽然华润运营地区的基建投资增速预计将继续保持强劲并超过全国平均水平, 但是下滑的房地产开发投资增速显示水泥需求在未来几年继续维持疲弱而 2016/2017 年广东广西两省将会有合计 12.15 百万吨 /6.20 百万吨的新产能投产, 同比增长 4.8% 和 2.4%, 我们认为这些地区的水泥价格将会受到打压云南省的整合已完成华润水泥通过向昆钢水泥注入 22 亿元人民币资本获取其 50% 的权益因此由昆钢和华润所设立的新水泥生产单位预计将达到年产能 3 千万吨, 成为云南最大的水泥生产商由此前三大水泥生产商现在占有云南省近 50% 的市场份额, 有利于云南省的水泥行业竞争环境我们预计如果明年人民币对美元贬值 3%, 大约为 5.42 亿港元的汇兑损失将被录得汇率的变动为华润水泥的报告盈利带来了非常大的不确定性我们对华润水泥的评级为中性, 目标价为 2.30 港元, 相当于 8.0 倍 /7.0 倍 /6.4 倍的 2015/2016/2017 年市盈率 See the last page for disclaimer Page 8 of 10

Research Department 研究部 Grace Liu 刘谷 Head of Research, Market Strategy, Petrochemicals 主管, 市场策略石化 liugu@gtjas.com (86755) 23976698 / (852) 25097516 Noah Hudson Noah Hudson Consumer (Hotels), Gaming 消费 ( 酒店 ) 博彩 noah.hudson@gtjas.com (86755) 23976684 Gary Wong 黄家玮 Environmental Protection, Infrastructure 环保基建 gary.wong@gtjas.com.hk (852) 25092616 Leo Wu 吴逸超 Coal, Electricity 煤炭电力 wuyichao@gtjas.com (86755) 23976871 Sunny Kwok 郭日升 Consumer (Food & Beverage, Household Products) 消费 ( 食品饮料日用品 ) sunny.kwok@gtjas.com.hk (852) 25092642 Ray Zhao 赵睿 Conglomerate, E-commerce 综合电子商务 zhaorui@gtjas.com (86755) 23976755 Shirley Gu 古乔艺 Market Strategy 市场策略 guqiaoyi@gtjas.com (86755) 23976718 Square Chui 徐惠芳 Futures 期货 square.chui@gtjas.com.hk (852) 25092629 Kevin Guo 郭勇 Raw Materials, Gas 原材料燃气 kevin.guo@gtjas.com (86755) 23976671 Ricky Lai 黎柏坚 Telecommunications, Internet 电信互联网 ricky.lai@gtjas.com.hk (852) 25092603 Dayton Wang 王庆鲁 Insurance, Fixed-income 保险债券 dayton.wang@gtjas.com.hk (852) 25095347 Richard Cao 曹柱 Banking 银行 caozhu013592@gtjas.com (86755) 23976870 Jun Zhu 朱俊杰 Clean Energy, Electric Equipment 清洁能源电力设备 junjie.zhu@gtjas.com.hk (852) 25097592 Ivan Zhou 周一帆 Shipping & Logistics, Ports 航运物流港口 zhouyifan013593@gtjas.com (86755) 23976685 Andrew Song 宋涛 Consumer (Retailing), Home Appliances 消费 ( 零售 ) 家电 andrew.song@gtjas.com.hk (852) 25095313 Van Liu 刘斐凡 Property 房地产 liufeifan@gtjas.com (86755) 23976672 Sherry Li 李沁亦 Aviation, Automobiles & Components 航空汽车 liqinyi@gtjas.com (86755) 23976675 Sean Xiang 向宇豪 Machinery, Construction Materials 机械建材 xiangyuhao@gtjas.com (86755) 23976725 Terry Hong 洪学宇 Consumer (Apparel) 消费 ( 服装 ) hongxueyu@gtjas.com (86755) 23976722 Johnny Wong 王俊浩 Research Assistant 研究助理 johnny.wong@gtjas.com.hk (852) 25095348 Toliver Ma 马守彰 Research Assistant 研究助理 toliver.ma@gtjas.com.hk (852) 25095317 Spencer Fan 范明 Research Assistant 研究助理 fanming@gtjas.com (86755) 23976686 Barney Wu 吴宇扬 Research Assistant 研究助理 wuyuyang@gtjas.com (86755) 23976680 Gary Ching 程嘉伟 Research Assistant 研究助理 gary.ching@gtjas.com.hk (852) 25092665 Esabella Zhao 赵舒蔓 Research Assistant, Translator 研究助理翻译员 zhaoshuman013399@gtjas.com (86755) 23976681 See the last page for disclaimer Page 9 of 10

Company Rating Definition The Benchmark: Hong Kong Hang Seng 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 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 Limited (00198 HK), Guangshen Railway Company Limited-H shares (00525 HK), China All Access (Holdings) Limited (00633 HK), Guotai Junan International Holdings Limited (01788 HK), Binhai Investment Company Limited (02886 HK) and Link Holdings Limited (08237 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 China Wood Optimization (08099) / 361 Degrees (01361) / CECEP COSTIN New Materials (02228) / Shanghai Electric- H shares (02727) / Powerlong Real Estate (01238) / Huaneng Power- H shares (00902) / Anhui Conch Cement- H shares (00914) / Huishang Bank- H shares (03698) / Redco Properties (01622) / AviChina Industry & Technology- H shares (02357) / China U-Ton (06168) / Tianyun International (06836) / Shenzhen Investment (00604) / D&G Technology (01301) / CGN Meiya Power (01811) / China Aoyuan Property (03883) / Bosideng (03998) / Binhai Investment (02886) / Wasion Group (03393) / Jiangsu Expressway- H shares (00177) / Chanjet Information Technology- H shares (01588) / WH Group (00288) / China Creative Home (01678) / China All Access (00633) / Huaneng Renewables- H shares (00958) / China Dredging Environment Protection (00871) mentioned in this Research Report within the preceding 12 months. 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 and 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. 2016 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) 2509-9118 Fax: (852) 2509-7793 Website: www.gtja.com.hk See the last page for disclaimer Page 10 of 10