20171222-广发证券_香港_-Dim_Sum_Express_4页_494kb

Dim Sum Express Summary

Key Index Performance (Dec 22, 2017)

Market	1D Chg (%)	1M Chg (%)	YTD Chg (%)	17E EPS (%)	18E EPS (%)	17E P/E	18E P/E
HSI	0.5	-2.1	33.5	24.8	9.9	13.1	11.9
HSCEI	0.8	-3.0	23.4	12.3	10.1	8.6	7.8
MXCN	1.0	-4.0	50.9	28.5	15.3	15.2	13.2
SHSZ300	0.9	-3.8	22.9	17.4	14.9	15.7	13.7
SHCOMP	0.4	-3.8	6.3	24.2	13.4	14.6	12.9
SZCOMP	0.7	-3.9	-3.3	43.7	26.7	25.5	20.1
INDU	0.2	5.3	25.4	15.8	9.7	19.7	18.0
SPX	0.2	3.4	19.9	23.0	10.3	20.1	18.2
CCMP	0.1	1.4	29.4	55.9	13.4	24.6	21.7
UKX	1.1	2.5	6.5	140.0	6.7	15.4	14.5
NKY	-0.1	1.4	19.5	39.6	12.6	19.2	17.1

Hong Kong ADRs

HK Ticker	Company	Local (HK$)	Daily (%)	ADR (US$)	Daily (%)
700	TENCENT	399.8	0.60	51.9	2.37
1398	ICBC	6.3	0.32	10.5	4.15
939	CCB	7.0	0.57	18.1	1.20
857	PETROCHINA	5.4	0.55	70.1	1.20
5	HSBC	79.6	0.32	51.5	0.72
941	CHINA MOBILE	77.4	-0.32	49.5	0.10
2318	PING AN	82.5	2.80	21.2	3.84
3988	BANK OF CHINA	3.8	0.26	12.1	0.62
2628	CHINA LIFE	24.7	1.44	6.9	-2.86
386	SINOPEC	5.7	1.78	73.3	2.36

Investment Strategy: National Economic Conference

• Core Message: The conference emphasizes a shift from high growth to quality growth and addresses unbalanced development.
• Three Key Missions for 2018:
  1. Controlling and solving major risks, especially financial risks.
  2. Targeted poverty relief.
  3. Pollution control.
• Sector Opportunities: Highlighted sectors include power, oil and gas, rail, environmental protection, education, and healthcare.
• Monetary Policy: Expected to remain neutral with tight liquidity.
• Fiscal Policy: Proactive and stable, with a focus on credit and social financing.
• Financial Supervision: More stringent MPA testing and asset management regulations are expected to enhance supervision capabilities.

Healthcare Sector

• New Listing Rules: HKEx allows biotech companies without revenue track records to list, with a minimum market cap of HK$1.5bn, lower than HK$40bn for other new economy IPOs.
• Sector Expansion: The healthcare sector's market cap is projected to grow significantly, potentially increasing to HK$1tn.
• Valuation Gap: H-share pharmaceutical companies are currently valued at a 51% discount compared to their US counterparts.
• Positive Outlook: Improved drug development news and more IPOs are expected to boost investor interest in the sector.

Risks

• Unexpected macroeconomic fluctuations.
• Weaker-than-expected policy implementation.
• Earnings misses by listed companies.

Rating Definitions

• Buy: Expected to outperform benchmark by more than 15%.

• Accumulate: Expected to outperform benchmark by more than 5% but not more than 15%.

• Hold: Expected relative performance ranges between -5% and 5%.

• Underperform: Expected to underperform benchmark by more than 5%.

• Positive Sector: Expected to outperform benchmark by more than 10%.

• Neutral Sector: Expected relative performance ranges between -10% and 10%.

• Cautious Sector: Expected to underperform benchmark by more than 10%.

Analyst Certification

• The views expressed in the report reflect the personal opinions of the analysts.
• No part of the analysts' remuneration is linked to specific recommendations.

Disclosure of Interests

• GF Securities (Hong Kong) and its affiliates do not hold shares in the mentioned securities.
• No investment banking relationship with the companies mentioned in the past 12 months.
• Analysts and their associates do not serve as officers of the mentioned companies.

Disclaimer

• This report is for informational purposes only.
• It does not constitute an offer to buy or sell securities.
• The information may be subject to change without notice.
• No liability is accepted for any loss arising from the use of this report.
• Recipients should seek professional advice before making investment decisions.

Copyright

• Copyright © GF Securities (Hong Kong) Brokerage Limited.
• Unauthorized copying or redistribution is prohibited.