Nomad Investors

Nomura rates Regina Miracle (02199) at HK$6.65 Nomura initiated coverage on Regina Miracle (02199) with a "neutral" rating, and a target price of HK$6.65, based on 16x FY2019 P/E, derived based on a 30% discount to Shenzhou's (02313) valuation. The discount we attached It said that Regina Miracle's aggressive expansion plans to establish four factories in Vietnam increased its capex by 4x from HK$221mn in 2015 to HK$886mn in 2016, and Nomura estimated capex will peak at HK$1bn in FY2018. The further expansion in Vietnam will drive its gearing to 60-70% in FY2018-20, which will in turn push up finance costs, and thus may also place dividend payout at risk. With higher depreciation charges and finance costs following the aggressive expansion in Vietnam, Nomura believes net profit growth may not be as optimistic as consensus expects.

Nomura starts Crystal Int'l (02232) at HK$9.7 Nomura initiated coverage of Crystal International Group (02232) with a "buy" rating and a target price of HK$9.7. It noted that Crystal is a unique original equipment manufacturer (OEM) with a diversified product portfolio, which includes lifestyle wear, denim, intimate, sweater and sports and outdoor apparel. Nomura said this enables Crystal to penetrate into various segments of the same clients. Nomura believes scale and product diversification will help Crystal to become one of the biggest suppliers of its existing clients. The company's capacity should rise to 548mn pieces by FY2019 to help meet growing orders (2016-19 CAGR of 15.8%). It believes the company's gross margin should rise by 0.7ppt to 21.1% by FY2018.

Goldman ups Galaxy Ent (00027) to HK$88 Goldman Sachs lifted its target price for Galaxy Entertainment (00027) to HK$88 from HK$86, and reiterated its "buy" rating. The research house said Galaxy's 4Q 2017 results came in at the high end of consensus expectations (EBITDA of HK$3.7-4.0bn), with EBITDA +13% qoq or +46% yoy to HK$4.1bn on a win-rate adjusted basis, driven by strong VIP rolling volume (+20% qoq or 48% yoy) and mass-market GGR (+10% qoq or +19% yoy), outperforming the industry. Coupled with effective cost control, it gained +1.1% EBITDA share to 24% in 4Q 2017. Goldman said the results reaffirmed its thesis that with its critical mass in VIP GGR, Galaxy Macau is set to benefit from the spillover effect to the premium mass segment (after Wynn Palace) - its mass-market table yield has outperformed and exceeded most adjacent properties in Cotai.

Macquarie lifts Standard Chartered to HK$86.83 Macquarie Research lifted its target price for Standard Chartered (02888) to HK$86.83 from HK$79, and reiterated its "neutral" rating. The research house said StanChart reported a mixture of disappointing 4Q 2017 performance but constructive medium-term earnings guidance. Momentum is gathering pace but still leaves the group generating inadequate returns to justify a higher rating. Medium-term guidance envisages an income CAGR of 5-7% in conjunction with negative real cost growth. As loan growth strengthens, and the net interest margin widens in sympathy with rising global interest rates, the top line outlook appears attractive relative to the slower growth profiles associated with UK domestic banks. Macquarie views the investment case for the group as underpinned by accelerating levels of controlled top-line growth which increasingly position StandChart back in its historic role as a

HSBC's 4Q 2017 represents lost quarter - MacQ Macquarie Research lowered its target price for HSBC Holdings (00005) to GBP8.02 from GBP8.46, but in HK$ terms it is broadly unchanged at HK$87.23, and reiterated its "outperform" rating. The research house said HSBC FY2017 results fell short of consensus expectations at the adjusted PBT level by 1.5%. This, together with the failure to announce a share buy back, has caused the shares to retreat based on concerns of lower future earnings and capital distributions. Macquarie believes these fears are largely ungrounded and that 4Q 2017 represents a lost quarter, not a deviation from the investment case. It predicted that the HSBC group NIM will rise from 163 bps in 2017 to 174 bps in 2018 and then further to 184 bps in 2020. Given the strong position of the group balance sheet, Macquarie made no changes to DPS (will be maintained at 51c) and share buy back (US$3bn pa into the mediu

Goldman cuts IMAX China (01970) to HK$27.18 Goldman Sachs cut its target price for IMAX China Holding (01970) to HK$27.18 from HK$28.36, and reiterated its "buy" rating as the company is well positioned to benefit from a recovering movie market in China. The research house said IMAX China's 2017 revenue growth of 7% yoy was in line with its expectation; net income was up 22% yoy, 5% above Goldman's expectation, mainly due to lower SG&A expense. Goldman thinks the company's new programming strategy would continue to work well but it cut its 2018-21 EPS estimates by 3-4% to reflect lower lower screen installation guidance.

Goldman lifts Hysan Dev (00014) to HK$32.88 Goldman Sachs lifted its target price for Hysan Development (00014) to HK$32.88 from HK$32.22, and reiterated its "sell" rating. The research house said Hysan reported in-line FY2017 results with a slight decline in revenue and earnings amid negative reversions in the retail segment. Management guided flattish retail revenue outlook while office remains on the positive side, with Lee Garden Three to see its first year of operations in 2018. Retail rental reversion was negative 21% during the year, which was impacted by the re-letting of space that was vacated ahead of plan by an anchor tenant in 2H 2017 (of which they also recognized a HK$142mn one-off compensation). Trading at 31% discount/18x FY2018 NAV/PER, Hysan's valuation is relatively unattractive versus its peers (Property company sector trades at 30% discount/17x PER, while SHK Properties at 40% discount/12x PER), said the r

Citi lifts AIA Group (01299) to HK$72 Citi Research lifted its target price for AIA Group (01299) to HK$72 from HK$64, and reiterated its "neutral" rating. The research house revised its estimates post FY2017 results by raising operating profit and earnings to reflect better investment income, but trimming VoNB estimates to reflect weaker sales in 1H 2018. While Citi continues to like AIA's best-in-class execution and top-notch management, it believes valuation (1.8x P/EV, 11x NB multiple) is not particularly attractive. Citi sees better value but similar operating momentum at China insurers.

Zijin Mining says Porgera gold mine suspends some production Zijin Mining (02899) said the Porgera gold mine project, which is a joint operation between Zijin Mining and Barrick Gold Corporation, is now operating on back-up power and some production activities have been suspended to conserve power after an earthquake of magnitude 7.5 on the Richter scale occurred in the Papua New Guinea Southern Highlands. The mine itself appears to have been unaffected by the earthquake, but the mine's primary power generating facility in Hides has sustained damage and is now offline, due to its proximity to the earthquake epicentre. No employees of the Porgera gold mine were injured during the earthquake or during the subsequent aftershocks. Zijin Mining also said the Kamoa-Kakula Copper Project in the Democratic Republic of the Congo, being a joint investment between Zijin Mining, Ivanhoe Mines Ltd. of Canada and the government of the DRC, has recen

China Railway (00390) consortium wins Rmb4.5bn EPC contract China Railway Group (00390) said the consortium formed by China Railway Tunnel Group Co., Ltd. and China Railway Electrification Engineering Group Co., Ltd (both companies are wholly-owned subsidiaries of China Railway Group) has won the bid for the EPC contract of track-laying and design, supply and construction of electromechanical system for the light rail red line in Tel Aviv, Israel. The bid amount of the project amounted to about ILS2.49 billion in aggregate (funded by budget appropriation from the Israeli government in full amounts), equivalent to about Rmb4.5 billion, representing about 0.7% of the operating revenue of China Railway in 2016 prepared under the China Accounting Standards. The project has a wide-range of scope including track-laying, power supply, contact system, communication, information providing, security system, screen doors, automatic fare collection, fi

Chongqing Iron year net turns black to Rmb320m; no div Chongqing Iron & Steel (01053) said it reported a net profit attributable to shareholders of Rmb320 million for the year ended 31 December 2017, as compared to the net loss of Rmb4,686 million for the previous financial year. Basic and diluted earnings per share were Rmb0.04. Operating income amounted to Rmb13,237 million, an increase of 199.82% from a year earlier. During the reporting period, the Group adjusted its production and operation mode from processing on order to self-producing and self-selling in line with the recovery of the steel market, and recorded significant increases in the production and sales volume and the selling prices of the steel products. No final dividend will be distributed.

Shandong Molong (00568) year net turns black to Rmb38.04m Shandong Molong Petroleum Machinery (00568) said it reported a preliminary net profit attributable to the equity holders of Rmb38.04 million for the year 2017, as compared to the net loss of Rmb612 million for the previous financial year. Basic earnings per share were Rmb4.8 cents. Total operating income amounted to Rmb2,965 million, an increase of 93.66% from a year earlier. Such improvement was mainly due to the fact that in 2017, the increase of the crude oil price and the change of the economic circumstances improved the market of tube products, especially in the second half of the year, during which the market demand and the market prices of the oilfield products increased in various degrees when comparing to the first half of the year.

Zhejiang Shibao (01057) year net down 48.6% to Rmb32.63m Zhejiang Shibao (01057) said its preliminary net profit attributable to shareholders for the year 2017 dropped 48.6% year-on-year to Rmb32.63 million. Basic earnings per share were Rmb4.13 cents. Total revenue amounted to Rmb1,156 million, an increase of 1.77% from a year earlier. The decline in profit was mainly due to the combination of four factors, including the delay in execution by clients, resulting in the sales of export businesses underperformed the expectation; the significant increase in production and sales of EPS products, however, due to the relatively high cost of certain projects at the early stage of mass production, no profit was recorded from such projects; the number of pilotless intelligent steering development projects recorded a significant increase, resulting in the continuous increase of the investment in the development, test and staff

Zhuangyuan Pa (01533) year net down 10% to Rmb68.35m Lanzhou Zhuangyuan Pasture (01533) said its preliminary net profit attributable to shareholders for the year 2017 dropped 9.96% year-on-year to Rmb68.35 million. Basic earnings per share amounted to Rmb0.46. Total operating revenue was Rmb628 million, a decrease of 5.62% from a year earlier. The business environment of dairy industry did not experience significant change in 2017. Zhuangyuan Pasture actively adapted to the new norms of macro-economy and conformed to the development trend of the industry. With the combined effect of intensified competition in regional markets and differentiation of marketing strategy that featured segmentation of product mix, the operating revenue, operating profit and net profit of Zhuangyuan Pasture for 2017 declined as compared to 2016, though all with a decrease of less than 10%.

]Nomura upgrades Sa Sa Int'l (00178) to HK$4 Nomura lifted its target price for Sa Sa International (00178) to HK$4 from HK$3, and upgraded its rating to "buy" from "neutral". The research house said Sa Sa reported yet another strong update with SSS growth of 12.2% for the Chinese New Year period (CNY) following its visible improvement in 3Q FY2018 SSS (3.7% versus flattish growth in 9-month FY2018). The strength in CNY was backed by a 14.5% increase in PRC tourist arrivals to Hong Kong. As a result, the increases in transactions of Mainland tourists and in average sales per transaction of local customers were up 18.9%/9.7%. Nomura believes this showcases management's execution ability, as the company's store relocation program of moving stores to more efficient prime locations was just in time to benefit from the uptick in PRC tourist visitations. It adjusted its FY2018/19 SSS growth upward to 1.9/8%.

AVIC Int'l (00232) sees annual loss before tax to drop 50% AVIC International (00232) said it expects to record a significant decrease of about 50% in loss before tax for the year ended 31 December 2017. The improvement in the loss position was mainly attributable to the decrease in the losses of certain investments held by the Group, as well as a one-off gain on disposal of convertible loans of about HK$87 million recorded. The is expected to record revenue from the property development and investment business for the year ended 31 December 2017 of about HK$1.5 billion, representing a significant increase as compared to the same period in 2016 (2016: about HK$100 million). However, as a result of the significant increase in cost of sales (the inventories of properties from the property development and investment business of the Group are expected to be impaired and the impairment will be included in the cost of sales), the Group is expecte

Xinte Energy to invest Rmb4.1bn in polysilicon project Xinte Energy (01799) said it plans to invest Rmb4,065 million in a 36,000-ton-per-annum highpurity polysilicon production upgrade project. The company intends to introduce investors and jointly establish a project company for the implementation of the project. The planned registered capital of the project company is Rmb1,200 million. Xinte Energy plans to contribute to around 70% of the registered capital of the project company. The project is expected to increase Xinte Energy's total annual polysilicon production capacity to 66,000 tons.

SMIT (02239) invests in StorArt and Sensel SMIT Holdings (02239) said it has completed its investments in StorArt Technology (Shenzhen) Co., Ltd and Sensel, Inc. The company has completed the Rmb20 million investment in StorArt for about 3.4% stake in StorArt's share capital. StorArt is an advanced integrated circuit design company based in Shenzhen, the PRC. StorArt specializes in the development of flash memory main controller integrated circuits which are mainly supplied to the communications, consumer electronics and data processing industries. SMIT also subscribed for a US$2 million promissory note which may be converted into common or preferred shares of Sensel. Sensel is an advanced sensory technology company based in the United States. Sensel's key technology is the pressure grid technology which combines industry-leading performance and the extra dimension of control in the form of force sensitivity.

C&D Intl Group (01908) wins bid for Suzhou land at Rmb458m C&D International Investment Group (01908) said it has successfully won the bid for the auction for the land use rights of a land located at the Weitang Town, Xiangcheng District, Suzhou, Jiangsu Province, the PRC for a total of Rmb458.35 million. The land has a total site area of about 22,256 square metres and an estimated gross floor area of about not exceeding 44,512 square metres for commercial-service and urban-residential use. The terms of the land use rights of the land are 40 years and 70 years respectively. The land is intended to be developed as a residential and commercial project.

Nomura ups Nine Dragons Paper (02689) to HK$21 Nomura lifted its target price for Nine Dragons Paper (02689) to HK$21 from HK$19, and reiterated its "buy" rating. The research house revised up its earnings revisions to factor in much stronger-than-expected 1H FY2018 results and stronger CNY appreciation against USD. Overall, it increased its FY2018 full-year EPS estimate by 7%. Nomura shared management's view of a positive outlook in 1H 2018 with potential continuing increases in ASP and Old Corrugated Containers (OCC). The company just announced an ex-factory price increase of a CNY200/tonne for its products this week. Nomura expects more hikes to come when most of the company's factories start operation in early March 2018 after the Chinese New Year holidays and when the quality control measures on imported recovered paper become effective on 1 March 2018, as it may drive up the price of China domestic OCC.

Shanghai Prime (02345) to sell bearings business to parent Shanghai Prime Machinery (02345) said it agreed to sell the entire equity interests in Shanghai Electric Bearing Co., Ltd. for Rmb58.85 million to controlling shareholder Shanghai Electric (Group) Corporation. Electric Bearing is principally engaged in manufacture and sale of bearings, bearing parts and semi-finished bearing products. Shanghai Prime is expected to recognise a loss of about Rmb364,000 from the disposal. It is intended that the net proceeds will be used as general working capital and capital expenditure for the Group and/or to fund new investments of the Group should suitable opportunities arises.

]Daiwa lifts Anta Sports (02020) to HK$43.5 Daiwa Research lifted its target price for Anta Sports Products (02020) to HK$43.5 from HK$40, and reiterated its "buy" rating. The research house said Anta's 2017 earnings growth of 29.4% YoY to CNY3.1bn was in line with Daiwa's expectations. However, its results were mixed, with government grants and FX gains offsetting weaker-than-expected margins. Nevertheless, Daiwa remains confident in the company's multi-brand and omni-channel strategy. It raised its revenue assumptions for 2018-19 to account for the recent revenue growth momentum and inclusion of the group's new brands, but trimmed its gross and operating margin estimates on higher raw material, A&P, staff and rental cost assumptions. In all, Daiwa trimmed 2018 earnings and raised its 2019 earnings by less than 1%.

[Budget]HK plans Construction Innovation & Technology Fund The Financial Secretary Chan Mo-po, Paul said in the 2018-19 Budget Speech that he proposes to set up a HK$1 billion Construction Innovation and Technology Fund to boost the capacities of enterprises and practitioners in the construction industry to adopt new technology, and support the industry to harness innovative technology. Eligible contractors, registered sub-contractors and consultants can apply for financial support from the Fund to acquire the software and hardware as well as to nurture the expertise required for using local and overseas innovative construction technologies, such as building information modelling, steel reinforcing bar products produced in local prefabrication yards and Modular Integrated Construction when carrying out construction projects. The fund will also support students and practitioners of the construction industry to receive training on innovative

Galaxy Ent (00027) year net up 67% to HK$10.5bn; div HK$0.41 Galaxy Entertainment (00027) said its net profit attributable to shareholders for the year ended 31 December 2017 rose 67.2% year-on-year to HK$10,504 million. Basic and diluted earnings per share were HK245.1 cents and HK243.7 cents. Revenue amounted to HK$62,450 million, an increase of 18.2% from a year earlier. Adjusted EBITDA amounted to HK$14.1 billion, up 37% year-on-year. The proposed special dividend is HK$0.41 per share, payable on or about 27 April.

HKEx (00388) year net up 28% to HK$7.4bn; div HK$2.85 Hong Kong Exchanges and Clearing Limited (HKEx) (00388) said its profit attributable to shareholders for the year ended 31 December 2017 rose 28.3% year-on-year to HK$7,404 million. Basic and diluted earnings per share were HK$6.03 and HK$6.02. Revenue and other income amounted to HK$13,180 million, an increase of 19% from a year earlier. EBITDA grew 25% to HK$9,614 million. The EBITDA margin of 73% was 4% higher than 2016, driven by the significant growth in revenue and other income as compared to the prior year. The proposed final dividend is HK$2.85 (2016: HK$2.04) per share, payable on 1 June. The Board also proposes to offer a scrip dividend alternative to allow shareholders to elect to receive the final dividend wholly or partly in the form of new fully paid shares in lieu of cash.

Morgan maintains "overweight" in China Morgan Stanley said MSCI China presents the biggest upside to its base case index targets for 2018 compared to other major equity indices that it covers. The research house said that China's earnings estimate revision trend is favorable relative to EM overall, though this has slowed more recently. Morgan remains positive on the macro side and is not too concerned about over-tightening or inflation overshoot at this point. It has recently revised its USDCNY exchange rate forecast from 6.70 to 6.25 by 2018 year-end. The immediate translational impact on earnings is positive as MSCI China is denominated in USD while the underlying earnings are mostly achieved in RMB. Morgan thinks that export-oriented businesses may face negative impact from stronger CNY; however, raw material costs and financing costs could improve for companies in the Materials, Transportation and Real Estate sectors, w

Chinese securitization deals rise in Sep-Dec 2017 - Moody's Moody's Investors Service said that issuance of Chinese securitization transactions for all asset classes rose during Sep-Dec from a year ago, both in terms of number of deals and value, while loan performance was steady. A total of 59 transactions with an aggregate volume of RMB324.5 billion were issued between 1 September and 31 December 2017, under the credit asset securitization (CAS) scheme managed by the China Banking Regulatory Commission (CBRC) and People's Bank of China (PBOC), four deals and RMB92.7 billion more than the same period in 2016. Within this total, issuance for residential mortgage-backed securities (RMBS) exceeded all other asset classes, amounting to RMB96.4 billion. Moody's conclusions are contained in its just-released report, "Securitization -- China: Sector update, Q4 2017 -- Issuance up, led by RMBS". Moody's expects overa

HKEX 2017 Net Profit Up 28.3% to $7.404B; Final Div $2.85 HKEX (00388.HK) -3.200 (-1.104%) Short selling $189.93M; Ratio 12.316% announced the results for the year ended 31 December 2017. Net profit gained 28.3% yearly to $7.404 billion. EPS equaled $6.03. EBITDA grew 25.5% yearly to $9.614 billion. EBITDA margin was 73%. A final dividend of $2.85 was declared, up from $2.04 over a year ago period. Dividend yield maintained at 90%.

HSI Fall Deepens to Over 250 Pts, Led by Tencent, HKEX, CN Financials Constrained at 31,800, Hang Seng Index once saw 300 pts growth gone this morning. The benchmark index slipped deeper after midday and sank below 20MA (31,250). It last posted at 31,242, down 255 pts or 0.8%, on turnover of $110.4 billion. Losses touched almost all blue chips. Heavyweight TENCENT (00700.HK) -8.400 (-1.854%) Short selling $318.16M; Ratio 9.416% headed south 1.8% to $445.4. HSBC HOLDINGS (00005.HK) -0.900 (-1.131%) Short selling $588.00M; Ratio 37.622% , HKEX (00388.HK) -6.200 (-2.096%) Short selling $402.64M; Ratio 24.035% , four major Chinese banks and two major Chinese resources stocks fell over 1%-2%. HKEX, PING AN (02318.HK) -1.950 (-2.241%) Short selling $170.24M; Ratio 10.824% , ICBC (01398.HK) -0.140 (-1.991%) Short selling $244.20M; Ratio 21.870% and BANK OF CHINA (03988.HK) -0.120 (-2.679%) Short selling $240

XH News Media (00309) names Chan Chun Wo Co-Chairman & CEO Xinhua News Media (00309) said executive Director Chan Chun Wo has been appointed as the Co-Chairman and the Chief Executive Officer with effect from yesterday. Chan is currently the chairman and the general manager of Zhejiang Hao Miao Technology Company Limited (Stock code: 366116), a company listed on The Qianhai Equity Exchange. He has more than 30 years of experience in business operation.

UOBKH lifts Shenhua Energy (01088) to HK$28 UOB Kay Hian lifted its target price for Shenhua Energy (01088) to HK$28 from HK$26, and reiterated its "buy" rating. The research house said Shenhua remains our preferred name among Chinese coal names because of its competitive advantages: (a) integrated coal-power-transport model cushions against well-diversified risks; (b) continues to strengthen low-cost position; (c) solid balance sheet; and d) strong cash generation ability. Based on its operations and 2017's positive profit alert, UOBKH believes Shenhua has achieved improvements across all segments. It expects Shenhua will continue to pay high dividends going forward given its: (a) healthy balance sheet; (b) strong 2017 results (EPS up +92.3% yoy); (c) consistent track record of high payouts (around 40% historically, paid special dividend for 2016 with yield of 15.9%).

UOBKH ups Shineway Pharma (02877) to HK$14.09 UOB Kay Hian lifted its target price for China Shineway Pharmaceutical (02877) to HK$14.09 from HK$10.96, and reiterated its "buy" rating. The research house expects Shineway to record strong sales in December 2017 and 1Q 2018 as 35% of its sales come from flu-related drugs, driven by the influenza outbreak. UOBKH expects a big earnings rebound in 2018, thanks to its new drugs that were included into the 2017 NRDL, rapidly-growing TCM granule business and well-organised sales force. It raised its 2017-19 net profit forecasts by 2.2% and 6% due to stronger-than-expected sales of Qingkailing injections since December 2017.

Daiwa lifts ENN Energy (02688) to HK$71 Daiwa Research lifted its target price for ENN Energy (02688) to HK$71 from HK$60, and reiterated its "buy" rating. The research house noted that ENN on 15 February said all of its CBs had been either converted or repurchased. With the CB expiry, Daiwa believes the last overhang on its share price has been removed and expects the stock to be re-rated on its: (1) integrated business model (self-imported LNG contract + distributed energy [DE]) which makes ENN gas sales margin more resilient amid the industry-wide dollar-margin squeeze, and (2) lower multiple than peers despite its highest long-term earnings visibility. Despite that and its highest 2017-19 core EPS growth (16% versus 11-16%), Daiwa said that ENN is only trading at a 12.6x 12-month forward PER, versus peers' 15-17x, which is unjustified, and warrants a rerating of the stock.

CICC starts Xinyi Solar (00968) at HK$4.69 CICC Research initiated coverage on Xinyi Solar Holdings (00968) with a "buy" rating and a target price of HK$4.69. The research house expects PV glass demand to see a 21% CAGR in 2017-20 as bifacial dual-glass modules may be the next technical breakthrough bringing solar costs down. CICC forecast dual glass module penetration will rise from 5% to 35% by 2020. Moreover, the glass sector is undergoing supply reform as the government has started to phase out production facilities through changing the emission rights supervision system. As of mid-January, 40% of glass companies still do not have permits and risk being shut down.

Citi lifts Xinyi Glass (00868) to HK$14.5 Citi Research lifted its target price for Xinyi Glass (XYG)(00868) to HK$14.5 from HK$13.3, and reiterated its "buy" rating. The research house said XYG's 2017 net profit came in at HK$4bn (+25% YoY), beating the consensus forecast by 9%; core net profit reached HK$3.7bn (+21% YoY), in line with expectation. The proposed final dividend at HK$0.28/share is 8% higher than Citi's estimate. Citi slightly revised up its 2018/19 earnings forecast by 1.9%/3.5%. It now became more constructive on XYG's ASP-cost spread expansion following its result briefing and given (1) national average float glass ASP remained resilient during the slack CNY season, (2) soda ash price dropping fast this year; and (3) national average ASP-cost spread widened to RMB672/tonne by the end of last week.

HSBC lifts CLP Holdings (00002) to HK$85 HSBC Global Research lifted its target price for CLP Holdings Ltd (00002) to HK$85 from HK$84, and reiterated its "hold" rating. The research house said CLP's 2017 recurring earnings growth of 8%, excluding one-off items, was a slight beat against expectation. The construction of the new 550MW gas fired unit is progressing, with operation expected by 2020, while the building of a floating LNG terminal is in its final stages of approval. CLP is also waiting government approvals for its overall capex plan for 2019-23, which would put a higher focus in cleaner fuel mix. HSBC continues to believe CLP's growth in asset base could offset some earnings downside when the new Scheme of Control (SoC) agreement resets the base return to 8% (from 9.99%) starting in October 2018.

Citi ups Shanghai Pechem (00338) to HK$5.27 Citi Research lifted its target price for Sinopec Shanghai Petrochemical (SPC)(00338) to HK$5.27 from HK$4.1, and upgraded its rating to "buy" from "sell". The research house said the upgrade reflects softer-than-expected decline in chemical spreads in 2018. While Citi still forecast a moderate decline in ethylene/PE spread on US start-ups in 2018, the fall will unlikely be as severe as earlier expected due to the China's import ban on recycled plastics and solid global demand. Citi believes SPC's 24% & 16% underperformance in 2017 versus HSI & HSCEI mostly prices in the spread-related concerns; current valuation is attractive at 1.3x P/B versus 16% ROE and dividend yield of 5.1% in 2018. It raised its EPS in 2017-19 by 15%/15%/13% factoring in the estimated inventory gain in 4Q 2017 and higher chemical margins in 2017-19.

Morgan lowers HutchTel HK (00215) to HK$3.4 Morgan Stanley cut its target price for Hutchison Telecommunications HK (HutchTel)(00215) to HK$3.4 from HK$3.6, and downgraded its rating to "equal-weight" from "overweight". The research house thinks HutchTel's 2H 2017 results disappointed the market on the one-year delay in potential special dividend. Risk-reward turns unattractive given the one-year waiting period, uncertainties from potential value dilutive M&As, and intensified mobile competition. Morgan continues to prefer HK fixed-line operators like HKT (06823) and HKBN (01310) to mobile like SmarTone (00315) and HutchTel, on improvement broadband competition and growing DPS.

Morgan Stanley raises ANTA Sports to HK$44.5 Morgan Stanley raised its target price for ANTA Sports Products (02020) to HK$44.5 from HK$29, and maintained its "overweight" rating. The research house thinks Anta's capability to deliver 23% and 22% sales and net income growth for 2017-19 will be a key driver to a further re-rating. Its target price of HK$44.5 implies c.15% return including dividend yield, this is higher than 7% out of the HK-listed consumer discretionary stocks under coverage. Morgan Stanley looks for a 22% earnings CAGR for 2017-19, mainly driven by strong sales growth. It thinks Nike and Adidas's strong performance in China has been a key driver of their higher P/E multiples from just 18x and 15x in 2013. It thinks Anta, as a pure China play that has delivered stronger momentum in sales and earnings growth compared to Nike and Adidas's China businesses, should not trade below Nike and Adidas's average valuation. Looking ahead, Mor

Xinyi Glass (868) year net up 25% to HK$4.01bn; div HK28 cts Xinyi Glass (00868) said its profit attributable to equity holders for the year ended 31 December 2017 rose 24.9% year-on-year to HK$4,014 million. Basic and diluted earnings per share were HK101.14 cents and HK99.92 cents. Revenue amounted to HK$14,727.5 million, an increase of 14.6% from a year earlier. The overall gross profit margin of the Group increased from 36.3% to 37%, principally due to the increase in the average selling price of float glass along with a wider variety in the product mix. The proposed final dividend is HK28 cents (2016: HK23 cents) per share, payable on or about 4 July.

NWDS China (00825) 1H net up 10.9% to HK$103m; no div New World Department Store China (00825) said its profit attributable to shareholders for the six months ended 31 December 2017 rose 10.9% year-on-year to HK$103 million. Basic and diluted earnings per share were HK6 cents. Revenue amounted to HK$1,873 million, an increase of 5.2% from a year earlier. Same-store sales growth for the period was 2%. The growth for the same period of previous year was flat. No interim dividend will be distributed.

Moody's assigns B1 to Central China's proposed USD bonds Moody's Investors Service said it has assigned a B1 senior unsecured rating to the proposed USD bond to be issued by Central China Real Estate Limited (00832) (CCRE, Ba3 stable). CCRE will use the proceeds from the proposed bonds to refinance existing debt. "The proposed bonds - which will be mainly used for debt refinancing - will not have a material impact on CCRE's credit metrics, but they will improve the company's liquidity and debt maturity profile," says Kaven Tsang, a Moody's Vice President and Senior Credit Officer and also the Lead Analyst for CCRE.

Morgan Stanley ups MGM China (02282) to HK$27 Morgan Stanley raised its target price for MGM China (02282) to HK$27 from HK$26, and maintained its "overweight" rating. With the opening of MGM Cotai on 13 February, the research house expects the new Cotai property to contribute US$224m in 2018 and US$525m in 2019 (vs. previously US$219m and US$525), reflecting added contribution from strong demand in CNY. Management highlighted that mass win/table/day in CNY were close to Peninsula level (~more than US$10K), higher than Morgan Stanley's estimate of US$7K for 1Q18. Morgan Stanley's market share gain expectation from the new casino is only 4% by 2019, much lower than the 6% gain by Wynn Macau after its opening of Wynn Palace. Historically, MGM has had similar mass market share and mass win/table/day in Peninsula despite lower hotel rooms/tables. MGM China 4Q17 EBITDA grew 9% YoY/23% QoQ and gained market share in both VIP and Mass (+0.7%/+0.5%, according

Goldman Sachs raises Sino-Ocean to HK$7.3 Goldman Sachs raised its target price for Sino-Ocean (03377) to HK$7.3 from HK$6.7, and maintained its "buy" rating. The research house revises up 2018E-2020E underlying EPS estimates for Sino-Ocean by 10%/8%/9% (keeping its 2017E forecast unchanged) to reflect land acquisitions during Sept-Nov 2017, which have increased total landbank by 14% from the end-Aug level. Correspondingly, Goldman Sachs revises up its end-18E NAV by 9% to HK$14.51. Goldman Sachs expects stronger sales growth and margin sustainability to lead to 17% underlying EPS CAGR during 2016-2019E vs. -4% during 2013-2016, which should support a narrowing of its valuation discount to the sector average.

]HSBC raises SITC (01308) to HK$10 HSBC Global Research lifted its target price for SITC (01308) to HK$10 from HK$8.2, and maintained its "buy" rating. The research house noted SITC has strong competitive positioning in the intra-Asia trade route with its niche business model. It is a clear beneficiary of continued strong trade and consolidation in the region. SITC guided for a high single-digit growth in 2018 (vs. 9% CAGR in 2010-16) mainly driven by continuing strength in the ASEAN market coupled with the addition of new port calls. SITC also expects the sequential improvement in its freight rates to persist going in to 2018. HSBC tweaks its 2017 profit estimates to reflect the company's upgraded profit guidance. In 2018-19e HSBC increases its profit estimates by 7-13% to reflect higher volume growth offset to some extent by higher bunker price assumptions. Its revised estimates imply ROE could improve from 18% in 1H17 to 24% by 2019e. It forecasts a 20% CAG

HSBC cuts Singamas Container (00716) to HK$1.8 HSBC Global Research lowered its target price for Singamas Container (00716) to HK$1.8 from HK$2, and maintained its "buy" rating. The research house noted prices for container boxes rebounded sharply in 2017 as demand recovered amidst a supply crunch. In 2018, US-listed box leasing companies, which are key clients of Singamas, guide for continued strength in demand and prices. Despite the near-term revival in demand, HSBC expects the medium-term outlook for container manufacturers to be weak. HSBC increases its volume assumptions for 2017-19e to reflect the strong pick-up in containers at leasing companies during 4Q17 and the positive outlook guided for 2018. At the same time, it lowers ASP assumptions to reflect the lower-than-expected prices. It also lowers its margin assumptions to reflect slightly higher operating costs due to RMB appreciation. Overall, HSBC lowers 2017-19e recurring profit estimates by 6-28%. It