12July2010

Aerospace
HAECO 44 Overweight
Price H$105.40 Target H$124.00
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 688.0 4.14 2.00
2010E 880.0 5.29 3.44 19.9 3.3
2011F 1,144.0 6.88 4.47 15.3 4.2

Asia Handset
AAC Acoustic 2018 Overweight
Price H$12.18 Target H$17.60
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 615.0 0.50 0.16
2010E 959.0 0.78 0.24 13.6 2.3
2011F 1,105.0 0.90 0.28 11.8 2.6

Banks
Dah Sing 440 Overweight
Price H$44.15 Target H$46.50
Earnings H$(M) EPS DPS P/E X YIELD %
2009A 626.0 2.41 0.00
2010E 1,129.0 4.34 1.30 10.2 2.9
2011F 1,233.0 4.74 1.42 9.3 3.2

CCB 939 .hsi .hsce Overweight

Price H$6.48 Target H$7.10
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 106,756.0 0.46 0.202
2010E 128,389.0 1.55 0.27 10.3 4.8
2011F 156,427.0 0.67 0.33 8.4 5.8

BankComm 3328 .hsi .hsce Overweight

Price H$8.50 Target H$10.30
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 30,118.0 0.61 0.20
2010E 40,050.0 0.82 0.30 9.7 4.1
2011F 50,900.0 1.04 0.38 7.1 5.1

Bank of China 3988 .hsi .hsce Overweight

Price H$4.12 Target H$5.60
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 81,068.0 0.32 0.14
2010E 101,495.0 0.39 0.18 9.2 5.0
2011F 123,788.0 0.47 0.21 7.6 5.9

China Power Equipment

Dongfeng Elec 1072 Overweight
Price H$24.35 Target H$30.00

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Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 1,712.0 0.96 0.16
2010E 2,362.0 1.18 0.22 18.0 1.0
2011F 3,527.0 1.76 0.33 12.0 1.6

Harbin Power 1133 .hsce Overweight

Price H$6.08 Target H$8.00
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 606.2 0.44 0.08
2010E 769.0 0.56 0.10 9.5 1.9
2011F 976.0 0.71 0.13 7.5 2.5

Coal
China Shenhua 1088 .hsi .hsce Overweight
Price H$29.25 Target H$39.00
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 31,706.0 1.59 0.53
2010E 39,632.0 1.99 0.65 12.8 2.6
2011F 45,745.0 2.30 0.75 11.1 2.9

Construction
China Railway 1186 .hsce Overweight
Price H$10.48 Target H$12.00
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 6,599.1 0.53 0.16
2010E 8,778.0 0.66 0.16 13.8 1.8
2011F 11,232.0 0.84 0.17 10.9 1.9

China Comm Cons 1800 .hsce Overweight

Price H$7.55 Target H$9.10
Earnings Emb (M) EPS DPS P/E X YIELD %
2009A 7,200.0 0.49 0.12
2010E 8,328.0 0.56 0.13 11.7 2.0
2011F 10,135.0 0.68 0.16 9.7 2.4

China Coal 1898 Overweight

Price H$11.18 Target H$15.80
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 7,834.3 0.59 0.15
2010E 10,885.0 0.82 0.22
2011F 13,953.0 1.05 0.27

China State Con 3311 Overweight

Price H$2.81 Target H$4.20
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 612.50 0.219 0.07
2010E 787.0 0.26 0.08 10.8 2.8
2011F 1,001.0 0.33 0.10 8.5 3.6

Gas Utilities

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China Res Gas 1193 Overweight
Price H$11.36 Target H$13.20
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 443.6 0.31 0.07
2010E 557.0 0.39 0.08 29.1 0.7
2011F 731.0 0.52 0.11 21.8 1.0

Xinao Gas 2688 Overweight

Price H$18.38 Target H$23.90
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 800.6 0.77 0.19
2010E 990.0 0.94 0.24 17.0 1.5
2011F 1,201.0 1.14 0.29 14.0 1.8

IPP
China Res Power 836 .hsi .hscc Overweight
Price H$16.96 Target H$21.90
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 5,317.0 1.19 0.38
2010E 5,566.0 1.20 0.40 14.1 2.4
2011F 6,820.0 1.47 0.49 11.5 2.9

Datang Power 991 .hsce Overweight

Price H$3.38 Target H$4.20
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 1,612.0 0.14 0.08
2010E 1,723.0 0.14 0.09 21.2 3.1
2011F 2,956.0 0.24 0.16 12.3 5.4

Shipping
Sinotran Ship 368 .hscc Overweight
Price H$3.1 Target H$4.30
Earnings US$ (M) EPS DPS P/E X YIELD %
2009A 106.4 0.03 0.01
2010E 116.0 0.03 0.01 13.3 2.5
2011F 145.0 0.04 0.01 10.0 2.5

Miscellaneous
Dalphe Int’l 210 Overweight
Price H$7.62 Target H$9.70
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 393.8 0.24 0.08
2010E 747.0 0.41 0.09 18.6 1.2
2011F 958.0 0.53 0.12 14.4 1.6

China Everbright 257 Overweight

Price H$3.42 Target H$4.70
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 371.9 0.10 0.02
2010E 541.0 0.15 0.02 22.8 0.6

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2011F 606.0 0.17 0.02 20.1 0.6

Citic Paciic 267 .hsi .hscc Overweight

Price H$14.96 Target H$22.50
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 5,950.0 1.63 0.40
2010E 6,014.0 1.65 0.45 9.1 3.0
2011F 6.505.0 1.78 1.52 8.4 3.5

Guangdong Inv 270 .hscc Overweight

Price H$3.78 Target H$5.10
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 2,044.3 0.33 0.11
2010E 2,363.0 0.38 0.13 9.9 3.4
2011F 2,569.0 0.41 0.14 9.2 3.7

Sinofert 297 Overweight

Price H$3.12 Target H$6.00
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A -1,443.0 -0.21 0.00
2010E 2,193.0 0.31 0.06 8.8 2.2
2011F 2,544.0 0.36 0.07 7.5 2.6

Huabao Int’l 336 Overweight

Price H$9.68 Target H$12.00
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 1,114.7 0.36 0.14
2010A 1,340.1 0.432 0.211 22.4 2.2
2011E 1,536.0 0.48 0.23 20.2 2.4

HKEx 388 .hsi Overweight

Price H$122.9 Target H$172.0
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 4,704.0 4.38 3.93
2010E 5,479.0 5.08 4.57 24.2 3.7
2011F 6,711.0 6.22 5.60 19.8 4.6

China Railway 390 .hsce Overweight

Price H$5.52 Target H$6.90
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 6,887.0 0.32 0.06
2010E 8,750.0 0.41 0.08 11.7 1.7
2011F 10,870.0 0.51 0.10 9.4 2.1

Yue Yuen 551 .hsi Overweight

Price H$24.25 Target H$32.00
Earnings US$ (M) EPS DPS P/E X YIELD %
2009A 464.7 0.25 0.11
2010E 481.0 0.25 0.12 12.5 3.8
2011F 540.0 0.28 0.15 11.1 4.8

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ChinaCom Service 552 .hsce Overweight
Price H$3.89 Target H$4.40
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 1,598.6 0.28 0.11
2010E 1,734.0 0.30 0.12 11.3 3.5
2011F 1,867.0 0.32 0.13 10.6 3.8

Sinotrans 598 Overweight

Price H$1.79 Target H$3.00
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 424.6 0.10 0.02
2010E 580.0 0.14 0.04 11.1 2.6
2011F 770.0 0.18 0.05 8.7 3.2

China Overseas 688 .hsi .hscc Overweight

Price H$16.08 Target H$21.92
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 7,468.9 0.92 0.20
2010E 8,817.0 1.08 0.20 14.9 1.2
2011F 10,669.0 1.31 0.24 12.3 1.5

Tencent 700 .hsi Overweight

Price H$138.8 Target H$187.0
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 5,155.6 2.78 0.40
2010E 7,853.0 4.23 0.61 28.6 0.5
2011F 10,541.0 5.67 0.82 21.3 0.7

Shimao Property 813 Overweight

Price H$13.68 Target H$19.80
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 3,511.2 1.02 0.33
2010E 3,848.0 1.09 0.37 10.9 3.1
2011F 4,333.0 1.23 0.42 9.7 3.5

NWDS China 825 Overweight

Price H$6.8 Target H$9.20
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 498.0 0.33 0.15
2010E 577.0 0.342 0.17 19.9 2.5
2011F 706.0 0.42 0.21 16.2 3.1

Xinyi Glass 868 Overweight

Price H$3.04 Target H$3.65
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 773.5 0.22 0.11
2010E 1,021.0 0.29 0.15 10.5 4.9
2011F 1,416.0 0.41 0.20 7.4 6.6

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CNOOC 883 .hsi .hscc Overweight
Price H$13.08 Target H$16.50
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 29,485.6 0.66 0.35
2010E 41,863.0 0.94 0.35 12.1 3.1
2011F 47,168.0 1.06 0.37 10.7 3.2

Lenovo 992 .hscc Overweight

Price H$4.49 Target H$5.70
Earnings US$ (M) EPS DPS P/E X YIELD %
2009A -226.4 -0.03 0.00
2010A 129.0 0.01 0.005 57.7 0.9
2011E 377.0 0.04 0.02 18.3 3.5
2012F 499.0 0.05 0.027

China Zhongwang 1333 Overweight

Price H$5.14 Target H$8.50
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 3,528.8 0.71 0.23
2010E 4,629.0 0.85 0.26 5.3 5.8
2011F 5,252.0 0.97 0.29 4.6 6.5

KWG Prop 1813 Overweight

Price H$5.29 Target H$8.46
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 720.1 0.25 0.05
2010E 1,230.0 0.43 0.13 27.3 1.1
2011F 1,531.0 0.53 0.16 22.2 1.4

Citic1616 Hold 1883 Overweight

Price H$2.14 Target H$2.70
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 371.5 0.19 0.10
2010E 449.0 0.19 0.10 11.3 4.7
2011F 511.0 0.21 0.11 10.2 5.1

KB Laminates 1888 Overweight

Price H$6.50 Target H$8.30
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 1,648.0 0.55 0.28
2010E 2,403.0 0.80 0.41 8.1 6.3
2011F 2,756.0 0.92 0.47 7.1 7.2

China Mengniu 2319 Overweight

Price H$25.45 Target H$30.50
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 1,115.8 0.68 0.14
2010E 1,423.0 0.82 0.18 27.0 0.8
2011F 1,903.0 1.10 0.27 20.1 1.2

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Comba-500 2342 Overweight
Price H$8.96 Target H$12.20
Earnings HK$ (M) EPS DPS P/E X YIELD %
2009A 564.5 0.51 0.18
2010E 799.0 0.65 0.17 13.8 1.9
2011F 872.0 0.71 0.18 12.6 2.0

China Oilfield 2883 Overweight

Price H$9.18 Target H$12.30
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 3,135.3 0.63 0.14
2010E 3,330.0 0.74 0.15 10.8 1.9
2011F 4,276.0 0.95 0.19 8.4 2.4

Ju Teng Int’l 3336 Overweight

Price H$5.29 Target H$8.00
Earnings H$ (M) EPS DPS P/E X YIELD %
2009A 704.9 0.66 0.05
2010E 942.0 0.85 0.08 6.2 1.5
2011F 1,274.0 1.16 0.13 4.6 2.5

Agile Property 3383 Overweight

Price H$9.09 Target H$12.0
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 1,865.2 0.52 0.18
2010E 2,927.0 0.81 0.28 9.8 3.5
2011F 3,836.0 1.06 0.37 7.5 4.7

Hengdeli 3389 Overweight

Price H$ Target H$3.86
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 364.8 0.09 0.03
2010E 595.0 0.15 0.05
2011F 754.0 0.19 0.06

China Bluechem 3983 Overweight

Price H$4.54 Target H$6.50
Earnings Rmb (M) EPS DPS P/E X YIELD %
2009A 984.7 0.21 0.07
2010E 1,571.0 0.34 0.10 11.6 2.5
2011F 2,498.0 0.54 0.10 7.3 4.0

Above are for reference only. It does not constitute any recommendation.
Please contact me for updated information.

Lawrence Lo
Tel: 2526 6928

12JUL10

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