Notes from Day 1 of GCC 2019
08 January 2019Global Research
ubs/investmentresearch
This package has been prepared by UBS Securities Asia Limited
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*Under review (UR) and/or exception to core rating bands (CBE) - see Required Disclosures section.
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Equities
Asia
Sectors in this Issue
Heavy Construction
P.12
Electric Utilities
P.28
Pharmaceuticals
P.30, P.67
Internet Services
P.73
Real Estate
P.4, P.22, P.24, P.26, P.36, P.40, P.69
Diversified Financial
P.54
Automobile Manufacturers
P.34, P.46, P.48
Water Utilities
P.50
Insurance, Property & Casualty
P.75
Heavy Machinery
P.65
Transportation Services
P.20, P.38, P.56
Consumer Services
P.14, P.63
Diversified Technology Services
P.71
Recreational Products & Services
P.18
Insurance, Full-Line
P.58, P.60
Healthcare Providers
P.10, P.52
Gas Utilities
P.16, P.42
Retailers, Specialty
P.32
Pollution Control
P.44
Summary
John Lam, CFA P.4Agile Group, 3383.HK
2019 GCC takeaways
12-month rating: Sell, 12/18E 1.85, 12/19E 1.81, 12m price target: HK$8.00, Market cap.: HK
$33.3bn/US$4.25bn
P.6Agricultural Bank of China (1288.HK)
Rachel Yang, CFA P.10Aier Eye Hospital, 300015.SZ
2019 GCC takeaways
12-month rating: Buy, 12/18E 0.44, 12/19E 0.60, 12m price target: Rmb35.22, Market cap.:
Rmb62.0bn/US$9.02bn
Robin Xu P.12China Communications Construction, 1800.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 1.23, 12/19E 1.38, 12m price target: HK$11.00, Market cap.: HK
$120bn/US$15.4bn
Edwin Chen, CFA P.14China Education Sector
2019 GCC takeaways
Ken Liu P.16China Gas Holdings, 0384.HK
2019 GCC takeaways
12-month rating: Buy, 03/19E 1.53, 03/20E 1.94, 12m price target: HK$33.50, Market cap.: HK
$129bn/US$16.5bn
Xin Chen P.18China International Travel Service, 601888.SS
2019 GCC takeaways
12-month rating: Buy, 12/18E 2.01, 12/19E 2.46, 12m price target: Rmb81.16, Market cap.:
Rmb113bn/US$16.5bn
Robin Xu P.20China Merchants Port, 0144.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 1.62, 12/19E 1.72, 12m price target: HK$21.60, Market cap.: HK
$47.5bn/US$6.07bn
Edwin Chen, CFA P.22China Merchants Shekou, 001979.SZ
2019 GCC takeaways
12-month rating: Buy, 12/18E 1.98, 12/19E 2.46, 12m price target: Rmb24.10, Market cap.:
Rmb139bn/US$20.3bn
John Lam, CFA P.24China Overseas Land & Investment, 0688.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 3.46, 12/19E 4.42, 12m price target: HK$35.30, Market cap.: HK
$293bn/US$37.4bn
John Lam, CFA P.26China Resources Land, 1109.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 2.91, 12/19E 3.58, 12m price target: HK$34.50, Market cap.: HK
$207bn/US$26.4bn
Ken Liu P.28China Resources Power, 0836.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 1.34, 12/19E 1.67, 12m price target: HK$18.40, Market cap.: HK
$72.8bn/US$9.29bn
Shaojing Tong P.30China Traditional Chinese Medicine, 0570.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 0.37, 12/19E 0.42, 12m price target: HK$8.64 = HK$7.99, Market
cap.: HK$20.3bn/US$2.60bn
Nora Min P.32China Yongda Automobiles Services, 3669.HK
2019 GCC takeaways
12-month rating: Buy, FYE -, 12m price target: HK$9.25 = HK$8.50, Market cap.: HK$7.78bn/US
$0.99bn
Wei Shen P.34Chongqing Changan Automobile - A, 000625.SZ
2019 GCC takeaways
12-month rating: Buy, 12/18E 0.18, 12/19E 0.49, 12m price target: Rmb7.50, Market cap.:
Rmb34.6bn/US$5.03bn
UBS 1
John Lam, CFA P.36CIFI, 0884.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 0.70, 12/19E 1.02, 12m price target: HK$4.50, Market cap.: HK
$32.3bn/US$4.12bn
Robin Xu P.38COSCO SHIP Port, 1199.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 0.10, 12/19E 0.10, 12m price target: HK$10.00, Market cap.: HK
$23.1bn/US$2.95bn
John Lam, CFA P.40Country Garden, 2007.HK
2019 GCC takeaways
12-month rating: Neutral, 12/18E 1.52, 12/19E 2.06, 12m price target: HK$9.20, Market cap.: HK
$197bn/US$25.1bn
Ken Liu P.42ENN Energy Holdings, 2688.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 4.05, 12/19E 4.71, 12m price target: HK$89.00, Market cap.: HK
$76.2bn/US$9.72bn
Alex Liu P.44Focused Photonics Hangzhou, 300203.SZ
2019 GCC takeaways
12-month rating: Buy, 12/18E 1.51, 12/19E 1.79, 12m price target: Rmb34.60, Market cap.:
Rmb11.5bn/US$1.67bn
Wei Shen P.46Great Wall Motor - A, 601633.SS
2019 GCC takeaways
12-month rating: Neutral, 12/18E 0.56, 12/19E 0.71, 12m price target: Rmb6.40, Market cap.:
Rmb52.4bn/US$7.63bn
Paul Gong P.48Great Wall Motor, 2333.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 0.56, 12/19E 0.71, 12m price target: HK$5.90, Market cap.: HK
$39.6bn/US$5.06bn
Ken Liu P.50Guangdong Investment, 0270.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 0.75, 12/19E 0.82, 12m price target: HK$16.20, Market cap.: HK
$99.9bn/US$12.8bn
Rachel Yang, CFA P.52Hangzhou Tigermed Consulting, 300347.SZ
2019 GCC takeaways
12-month rating: Buy, 12/18E 0.93, 12/19E 1.24, 12m price target: Rmb60.39 = Rmb58.28,
Market cap.: Rmb19.6bn/US$2.85bn
May Yan P.54LexinFintech Holdings, LX.O
2019 GCC takeaways
12-month rating: Buy *, 12/18E 7.53, 12/19E 11.83, 12m price target: US$16.10, Market cap.: US
$1.34bn
Eric Lin P.56Pacific Basin Shipping, 2343.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 0.02, 12/19E 0.02, 12m price target: HK$2.20, Market cap.: HK
$6.56bn/US$0.84bn
Kelvin Chu, CFA P.58Ping An Insurance (Group) - A, 601318.SS
2019 GCC takeaways
12-month rating: Buy, 12/18E 5.67, 12/19E 6.72, 12m price target: Rmb78.56, Market cap.:
Rmb1,029bn/US$150bn
Kelvin Chu, CFA P.60Key Call: Ping An Insurance (Group), 2318.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 5.18, 12/19E 6.53, 12m price target: HK$100.00, Market cap.: HK
$1,231bn/US$157bn
Felix Liu P.63RISE Education, REDU.O
2019 GCC takeaways
12-month rating: Neutral, 12/18E 2.71, 12/19E 3.22, 12m price target: US$10.66, Market cap.: US
$0.49bn
Phyllis Wang P.65Sany Heavy Industry, 600031.SS
2019 GCC takeaways
12-month rating: Buy, 12/18E 0.74, 12/19E 0.94, 12m price target: Rmb11.56, Market cap.:
Rmb62.7bn/US$9.13bn
Shaojing Tong P.67Sinopharm Group, 1099.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 2.03, 12/19E 2.29, 12m price target: HK$42.50, Market cap.: HK
$87.7bn/US$11.2bn
John Lam, CFA P.69Sunac China, 1918.HK
2019 GCC takeaways
12-month rating: Buy, 12/18E 3.42, 12/19E 5.30, 12m price target: HK$32.50, Market cap.: HK
$107bn/US$13.7bn
Jimmy Yu P.71Wangsu Science and Technology, 300017.SZ
2019 GCC takeaways
UBS 2
12-month rating: Buy, 12/18E 0.44, 12/19E 0.57, 12m price target: Rmb14.30, Market cap.:
Rmb20.5bn/US$2.99bn
Zhijing Liu P.73YOUZU Interactive, 002174.SZ
2019 GCC takeaways
12-month rating: Buy, 12/18E 1.06, 12/19E 1.15, 12m price target: Rmb21.43, Market cap.:
Rmb17.5bn/US$2.54bn
Kelvin Chu, CFA P.75Zhong An Online P&C Insurance, 6060.HK
2019 GCC takeaways
12-month rating: Neutral, 12/18E (0.67), 12/19E 0.15, 12m price target: HK$34.80, Market cap.: US
$4.50bn/HK$35.3bn
UBS 3。