20171228-广发证券_香港_-Dim_Sum_Express_5页_450kb

Dim Sum Express Summary

Key Index Performance (Dec 28, 2017)

Market	1D (%)	1M (%)	YTD (%)	17E (%)	18E (%)	17E (P/E)	18E (P/E)
HSI	0.1	-0.3	34.5	25.2	9.9	13.2	12.0
HSCEI	-0.3	-0.8	23.7	12.8	10.1	8.6	7.8
MXCN	-0.1	-1.8	51.3	29.0	15.4	15.2	13.2
SHSZ300	-1.5	-1.6	20.6	17.4	14.9	15.4	13.4
SHCOMP	-0.9	-1.7	5.5	24.3	13.4	14.5	12.8
SZCOMP	-0.7	-2.1	-4.6	43.7	26.8	25.2	19.8
INDU	0.1	3.9	25.4	15.8	10.2	19.7	17.9
SPX	0.1	2.1	19.8	23.0	10.7	20.0	18.1
CCMP	0.0	0.4	28.9	56.1	13.6	24.4	21.5
UKX	0.4	2.1	6.7	140.1	6.6	15.5	14.5
NKY	-0.1	1.8	19.8	39.8	12.5	19.3	17.1

Hong Kong ADRs Performance

HK Ticket Company	Local (HK$)	Daily (%)	ADR (US$)	Daily (%)
700 TENCENT	401.2	-1.13	51.5	-1.00
1398 ICBC	6.3	-0.48	10.4	0.93
939 CCB	7.1	0.85	18.3	0.52
857 PETROCHINA	5.5	0.55	70.7	-0.37
941 CHINA MOBILE	78.4	0.51	50.0	0.12
5 HSBC	79.8	-0.25	51.5	-0.08
2318 PING AN	80.9	-2.41	20.7	-3.01
3988 BANK OF CHINA	3.8	0.26	12.2	-0.33
2628 CHINA LIFE	24.4	-1.22	6.9	-2.86
386 SINOPEC	5.8	0.17	73.9	-0.26

A-Share Market Outlook

• Opportunities limited to certain sectors: Fund managers expect a slow bull market in 2018, with opportunities concentrated in blue-chip and emerging sectors.
• Earnings-focused strategy: Earnings growth is seen as a key driver for stock selection.
• Infrastructure investment: Expected to be a key determinant for 2018 economic fundamentals, especially for midstream manufacturing.
• Consumer and financial sectors: Defensively positioned if infrastructure investment misses expectations.
• New economy growth stocks: Worth watching, particularly in 5G, big data, and semiconductor sectors.
• Mid-cap companies: Preferred in the medium term due to healthy earnings-valuation combinations.

Hong Kong Market Outlook - Utilities Sector

• Solar FIT rate adjustments: Better than expected, with reductions of Rmb0.1/kWh for power plants and Rmb0.05/kWh for distributed projects.
• Uncertainty removed: Finalization of FIT rates is expected to boost solar power demand.
• Installation rush: Likely for ground-mounted solar projects before 30 June 2018.
• Distributed solar projects: Will follow 2018 subsidy standards, no rush expected.
• Investment highlights: Xinte Energy (1799 HK) and Xinyi Solar (968 HK) are recommended.
• Key risks: Solar capacity installation missing expectations, lower-than-expected cost declines, and risks related to crystalline silicon technology.

Analyst Certification

• The research analyst(s) certifies that the views expressed reflect their personal opinions and that no remuneration is directly tied to specific recommendations.

Disclosure of Interests

• GF Securities (Hong Kong) and its affiliates may have financial interests in the mentioned companies.
• Conflict of interest may exist due to investment banking services and compliance advisory roles.

Disclaimer

• This report is for informational purposes only and does not constitute an offer to buy or sell securities.
• The information may be incomplete or inaccurate, and GF Securities (Hong Kong) accepts no liability for any loss incurred.
• Investment involves risks, and past performance does not guarantee future results.
• The report should not replace professional advice.