20180824-广发证券_香港_-Dim_Sum_Express_4页_461kb

报告摘要

Equity Research Summary: Dim Sum Express

Key Index Performance

Market	1D (%)	1M (%)	YTD (%)	EPS 18E (%)	EPS 19E (%)	P/E 18E	P/E 19E
HSI	-0.5	-3.0	-7.1	37.2	11.0	11.3	10.2
HSCEI	-0.3	-1.5	-7.6	16.3	10.7	7.8	7.0
MXCN	-0.8	-5.5	-9.1	46.9	15.8	12.2	10.6
SHSZ300	0.4	-7.3	-17.6	34.2	15.2	11.2	9.7
SHCOMP	0.4	-6.2	-17.6	37.6	13.7	10.9	9.6
SZCOMP	0.6	-10.0	-22.9	71.8	21.7	16.4	13.5
INDU	-0.3	1.6	3.8	43.8	9.1	16.5	15.1
SPX	-0.2	1.3	6.9	48.2	10.3	17.7	16.0
CCMP	-0.1	0.5	14.1	40.8	41.6	30.7	21.7
UKX	-0.2	-1.9	-1.6	173.8	7.7	13.5	12.5
NKY	0.3	-0.2	-1.3	65.4	13.1	16.0	14.1

The indices show mixed performance over different time horizons. HSI and HSCEI declined year-to-date, while CCMP showed a significant increase. EPS growth is generally positive, with notable increases in MXCN and SHCOMP. P/E ratios are also rising for most indices, indicating optimism about future earnings.

Hong Kong Market Highlights

Xstep International (1368 HK, Buy)

1H18 Performance: Net profit rose 21% YoY to Rmb375m, beating both Bloomberg and GF estimates. Revenue increased 18% YoY to Rmb2,729m.
Earnings Beat: The beat was primarily due to higher-than-expected government subsidies.
Outlook: Management expects stronger revenue growth in 2H18 than in 1H18, driven by replenishment orders and continued SSS momentum.
Store Expansion: Plans for 200-300 net openings for the core brand and 400 new Xstep kids stores in FY18.
Inventory: Inventory increased due to high sell-out rates, but the company's offline channel inventory remains healthy.
A/R Days: Improved from 140 days in FY17 to 117 days in 1H18, indicating better receivables management.
Target Price: Raised from HK$5.90 to HK$6.10, based on a 15x FY19E P/E.

IGG (799 HK, Buy)

1H18 Performance: Revenue up 42% YoY to US$388m, net profit up 28.6% YoY to US$98.61m, driven by Lords Mobile's growth.
Gross Margin: Increased to 70.3%, up 2.2pp YoY.
Expenses Ratio: Rose to 37.7%, up 24pp YoY.
Grossing Growth: Monthly average grossing reached US$70m, with Lords Mobile's grossing at US$56m.
New Game Launches: Six new games to be launched in 4Q18, including Project SOK and Galaxy Mobile.
Target Price: Maintained at HK$12.60, with positive outlook for 4Q18 and beyond.
Risks: Grossing growth may fall short, new game launches may be delayed, or new game performance may be disappointing.

Rating Definitions

Rating	Definition
Buy	Stock expected to outperform benchmark by more than 15%
Accumulate	Stock expected to outperform benchmark by more than 5% but not more than 15%
Hold	Expected stock relative performance ranges between -5% and 5%
Underperform	Stock expected to underperform benchmark by more than 5%

Sector Rating	Definition
Positive	Sector expected to outperform benchmark by more than 10%
Neutral	Expected sector relative performance ranges between -10% and 10%
Cautious	Sector expected to underperform benchmark by more than 10%

Analyst Certification

The analysts responsible for the report certify that the views expressed reflect their personal opinions and that their remuneration is not directly tied to specific recommendations.

Disclosure of Interests

GF Securities (Hong Kong) and its affiliates do not hold any shares in the mentioned securities.
No investment banking relationship with the companies in the past 12 months.
Analysts and their associates have no financial interests in the securities.

Disclaimer

This report is for informational purposes only and does not constitute an offer to buy or sell securities. GF Securities (Hong Kong) accepts no liability for losses arising from the use of the report. The report may contain different views from other communications issued by GF Securities (Hong Kong). The information is current as of the date of the report and may change without notice.

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