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Macquarie cuts Chow Sang Sang (00116) to HK$22 Macquarie Research lowered its target price for Chow Sang Sang (CSS)(00116) to HK$22 from HK$23, and reiterated its "outperform" rating. The research house said the company, in 1Q 2018, saw strong momentum of gem-set jewellery in HK, and a stabilized Mainland market. Looking forward, Macquarie expects the favorable product mix and double-digit decline in rentals will help to deleverage operating leverage. It trimmed its net profit estimates by 6% and 12% for FY2018 and FY2019, by lowering its SSSg assumption to 3.7% from 6.7%. Macquarie projected the GPM to be 24.5% for 2018, up 0.9ppt compared with that of 2017. As for operating profit margin, it only projected a 4% increase of staff cost to factor in the 20% decline of employees based in HK as well as the rising employees in mainland. Plus the rental savings, Macquarie expects operating profit margin will arrive at 7.6%, increasing b

Macquarie ups China Vanke (02202) to HK$36.37 Macquarie Research lifted its target price for China Vanke (02202) to HK$36.37 from HK$28.14, and reiterated its "outperform" rating. The research house said the most surprising part about Vanke's results was not the cut in dividend payout ratio from 41.5% to 35.4% but the strong political correctness in both the speech of newly elected Chairman Yu Liang at the analysts' briefing and the longer-than-usual "To Shareholders" section in the annual report. "19th NCCPC" and its spirit were mentioned 8 times (7 more throughout the rest of the report) versus "shareholder" only twice. This may be due to Shenzhen Metro now owning 29.38% of the company, the retirement of Wang Shi from the Board and stronger influence of the central government. Chairman Yu commented that the company is no longer in search of just profits and growth but is looking for a path o

MacQ lifts Brilliance China (01114) to HK$26.2 Macquarie Research lifted its target price for Brilliance China Automotive (01114) to HK$26.2 from HK$25.90, and reiterated its "outperform" rating. The research house said the positive surprise from Brilliance China's 2017 results was higher-than-expected revenue for BMW-Brilliance (BBA), up 16.9% YoY despite the slower sales of the 5 Series ahead of the model change. Margins for BBA also showed a good uplift, with the segment margin rising to 12.6% from 11.2% in 2016, and the net profit margin up 100bps to 9.4%. The full-year contribution of the new 5 Series and the addition of the new X3 to the line-up in a couple of months should underpin another strong year of growth. Macquarie believes the recent weakness in the share price, which appears to be in part on misplaced concern that BBA's growth prospects could be hurt by Sino-US trade tensions, offers an excellent buying op

Macquarie trims GOME Retail (00493) to HK$0.5 Macquarie Research trimmed its target price for GOME Retail Holdings (00493) to HK$0.5 from HK$0.7, and reiterated its "underperform" rating post its disappointing results. The research house is concerned with home appliance sales momentum given the China property sales slowdown while the company's high gearing ratio is also concerning. Macquarie adjusted its net profit estimates for FY2018 to a net loss of Rmb67mn (from Rmb278mn profit). It noted that GOME booked a one-off impairment losses of Rmb743mn in 2017. Stripping out these one-offs, the operating profit would have been Rmb361mn, up 124% YoY. However, the financing cost of Rmb692mn wiped out the majority of the profit. Macquarie projected 25% YoY growth of financing cost for FY2018, i.e. Rmb863mn.

Macquarie cuts China Telecom (00728) to HK$4 Macquarie Research cut its target price for China Telecom (CT)(00728) to HK$4 from HK$4.7, and reiterated its "outperform" rating. The research house said CT's management guided for 2018 capex to be down another 15.5% YoY to Rmb75bn, although the company is confident that it can drive both 4G and fixed-line broadband subscribers at the 2017 level. CT is also confident it can grow mobile data traffic at the same level as or surpass 2017's +180% YoY. CT highlighted that its 4G network utilization rate is only around 25% and that it will use its capex budget precisely in high-demand areas to secure service quality. Macquarie is positive on China Telecom given it has the largest upside to 5G, driven by (1) Applications: CT owns relatively large innovative services, including Cloud, Big Data, IoT, DICT, Mobile payment and IPTV; (2) Clients: CT has a large government and enterprise

CNOOC Annual Net Profit Surges 37.7x to RMB24.68B; Final Div HK30 Cents CNOOC (00883.HK) -0.060 (-0.516%) Short selling $121.76M; Ratio 16.526% announced annual results ended December 2017. Net profit surged 37.74 times year on year to RMB24.677 billion. EPS equaled RMB0.55; final dividend was HK$0.3, against HK$0.23 in the year ago period. During the period, the revenue rose 27.24% yearly to RMB186.39 billion; revenue from oil and gas sales hiked 25.19% yearly to RMB151.888 billion.

HK Feb Authorised Institution Total Deposits Down 0.8%; RMB Deposits Up 0.7% As revealed by HKMA, total deposits with authorised institutions dropped 0.8% in February 2018. Overall foreign-currency deposits decreased 1.7%, of which RMB deposits went up 0.7% to RMB550.4 billion at the end of February.

48% Respondents See Home Price Rise, 59% Feel Now Not Good Time to Buy: Poll Hong Kong Research Association conducted a survey towards 1,085 adult residents regarding housing market trend for next six months. 48% respondents estimated uptrend, 7 ppts higher than similar survey last September; while 15% saw downtrend, 2 ppts lower than the previous poll. In addition, 59% interviewees felt now is not a good time to purchase houses, 1 ppt above the previous survey. Results revealed that many residents were positive about the prices but did not dare to enter the market.

Brokers' Ratings & TPs on MENGNIU DAIRY(02319.HK)(Table)(Update) Brokers' latest ratings and target prices on MENGNIU DAIRY(02319.HK) +1.750 (+6.958%) Short selling $118.40M; Ratio 9.419% are listed as follows: Brokers│Ratings│Target prices (HK$) Morgan Stanley│Overweight│30->32 Daiwa│Buy│29.8->31 JPMorgan│Overweight│28.5->30 Deutsche Bank │Buy│26.8->30 Bank of America Merrill Lynch │Buy│29.2 Citigroup│Buy│28.84->29.15 Goldman Sachs │Neutral│27.9 RHB│ Buy │26.3

UBS Trims AAC TECH(02018.HK) TP to $185, Kept Buy UBS indicated in its report that AAC TECH(02018.HK) -0.500 (-0.352%) Short selling $104.34M; Ratio 11.672% 's 2018 revenue forecast was lowered by 4.5%, in light of its expected weaker 1H18 performance. AAC TECH was kept at Buy with the target price trimmed from $194 to $185.

Sun Hongbin: Investing LeEco Is Failure, Willing to Resell at Discount At the press conference, Sun Hongbin, Chairman of SUNAC (01918.HK) +0.400 (+1.338%) Short selling $76.42M; Ratio 8.215% , admitted investing LeEco is a failure, but said he does not regret that because everything is either win or loss. Asked whether he will consider investing LeEco with his own money or resale of the company, Sun said he gets no idle money but he is willing to sell to anybody at 10% discount.

CICC: TENCENT Mgmt Expects Gaming Sector Booming in 2018, TP Reiterated $540 After meeting with TENCENT(00700.HK) -2.600 (-0.631%) Short selling $1.63B; Ratio 9.644% 's management, CICC said in its report that mobile game development is believed to remain robust in 2018, yet PC game growth may drop to single-digit owing to high base last year. Besides, Weixin Moments ad revenue increased since 13 March, which is expected to lift ad revenue growth of TENCENT in 2H18. CICC envisioned the recent decline in the stock price provided an entry point, hence maintained the company at Buy with target price of $540.

G Sachs: HSCEI Constituents Div Surprising; To Watch CNOOC, BANK OF CHINA on Results Today Goldman Sachs, in its report, stated that over 70% HSCEI constituents have announced results successively in last few weeks. Large caps like SINOPEC CORP (00386.HK) +0.140 (+2.074%) Short selling $305.28M; Ratio 21.063% , PETROCHINA (00857.HK) -0.100 (-1.821%) Short selling $111.13M; Ratio 15.524% and PING AN (02318.HK) -0.350 (-0.437%) Short selling $2.75B; Ratio 32.110% registered surprises in their dividends due to resilient profitability and improved dividend policy. The research house highlighted the healthy results of Chinese banks as well as widened NIM and lower NPLs. Goldman Sachs continued to envision higher dividend declared by HSCEI constituents, on the ride of structural profit growth and better dividend payout, adding CNOOC (00883.HK) -0.060 (-0.516%) Short selling $121.76M; Ratio 16.526% and BANK OF CHINA (03988.HK)

M Stanley: CHINA MER PORT(00144.HK) Results Broadly In-line, Kept Equalweight Morgan Stanley's report indicated that CHINA MER PORT(00144.HK) -0.080 (-0.460%) Short selling $32.46M; Ratio 21.515% 's 2017 results were broadly in-line. The recurring net profit went up 19.9% year on year to $5.5 billion, 4.9% higher than its estimates. The payout ratio was 44%, as compared with 42% in 2016. The broker rated Equalweight on CHINA MER PORT at the target price $23.42.

HSI Up 70 Pts; MOST KWAI CHUNG Tumbles 45.5% This morning, Hang Seng Index opened up 131 pts but eased back over 200 pts at most to sink below 30,000 in morning trade. It ticked up after midday to peak at 30,252. At close, the benchmark index elevated 70 pts or 0.2% to 30,093. Hang Seng China Enterprises Index sank 2 pts to 11,998. Market turnover reached $137.287 billion. AIA (01299.HK) +1.100 (+1.685%) Short selling $569.79M; Ratio 38.295% rebounded 1.7%. TENCENT (00700.HK) -2.600 (-0.631%) Short selling $1.63B; Ratio 9.644% eased back 0.6% to $409.6. The President Lau Chi Ping had unloaded on-market 1 million shares on Tuesday (27 March) at an average price of $434.3624, cashing in $434 million. Debuted yesterday, MOST KWAI CHUNG (01716.HK) -2.900 (-45.455%) slumped 45.5% at close today. Chinese auto makers remained under pressure. BRILLIANCE CHI (01114.HK) -0.520 (-3.077%) Short selling $242.84M; Ratio 19.305% tumbled 3

BOCHK (2388) year net down 44% to HK$31.07bn; div HK75.8 cts BOC Hong Kong (02388) said its profit attributable to equity holders for the year ended 31 December 2017 dropped 44.4% year-on-year to HK$31,070 million. Basic and diluted earnings per share were HK$2.9387. Profit attributable to equity holders from continuing operations increased 15.9% year-on-year to HK$28,481 million. The Group's net interest income rose 33.4% year-on-year to HK$34,708 million. Net interest margin was 1.57%, up 24 basis points. The classified or impaired loan ratio was 0.18% as at 31 December 2017, down 0.05 percentage point from the end of last year. Classified or impaired advances to customers decreased by HK$203 million, or 8.9%, to HK$2,079 million. The proposed final dividend is HK75.8 cents (2016: HK62.5 cents) per share, payable on 16 July.

BoCom (3328) year net up 4.5% to Rmb70.22bn;div Rmb28.56 cts Bank of Communications (BoCom) (03328) said its net profit attributable to shareholders for the year ended 31 December 2017 rose 4.48% year-on-year to Rmb70,223 million. Basic and diluted earnings per share were Rmb0.91. Net interest income amounted to Rmb127,366 million, a decrease of 5.56% from a year earlier. The net interest spread and net interest margin decreased by 31 and 30 basis points on a year-on-year basis to 1.44% and 1.58%, respectively. The Group's provision coverage ratio was 153.08%, representing an increase of 2.58 percentage points from the beginning of the year; impaired loan ratio was 1.5%, decreased by 0.02 percentage points from the beginning of the year. As at the end of the reporting period, the Group's capital adequacy ratio was 14%, Tier-1 Capital adequacy ratio was 11.86%, and Core Tier-1 Capital adequacy ratio was 10.79%, which met the regu

MacQ lifts China Overseas (00688) to HK$32.19 Macquarie Research lifted its target price for China Overseas Land & Investment (COLI)(00688) to HK$32.19 from HK$28.14, and reiterated its "outperform" rating. The research house said in last August that COLI's saleable resources were still short by Rmb641bn. Six months have passed, and 2H 2017 land purchases were Rmb68bn, while year-to-date purchases are Rmb30bn. It believes more work still needs to be done in 2018 and 2019 to re-ignite earnings growth in 2019. As for the management reshuffle, Macquarie thinks that should not be a surprise, especially when solidarity is much needed in the face of internal and external challenges. On Monday, management said they target HK$290bn for 2018 on saleable resources of HK$555bn. Macquarie doesn't see much difficulty in COLI meeting or even exceeding this target as, if using the same sell-thru rate as las

CNOOC (00883) year net soars to Rmb24.7bn; div HK30 cts CNOOC Limited (00883) said its profit attributable to owners of the parent for the year ended 31 December 2017 soared 37.7 times year-on-year to Rmb24,677 million, primarily as a result of the increase in profitability due to higher international oil price environment, as well as the combined effects of increased reserve and reduced costs as a result of adoption of efficient measures by the company. Basic and diluted earnings per share were Rmb0.55. Revenue amounted to Rmb186,390 million, an increase of 27.2% from a year earlier. In 2017, CNOOC realized a net production of 470.2 million BOE, representing a decrease of 1.4% over the previous year, which exceeded the annual production target. Oil and gas sales were Rmb151,888 million, an increase of 25.2% over the previous year The proposed final dividend is HK30 cents (2016: HK23 cents) per share, payable on 10 July.

GAC Group (02238) year net up 75% to Rmb11bn; div Rmb43 cts Guangzhou Automobile Group (02238) said its net profit attributable to owners for the year ended 31 December 2017 rose 75.02% year-on-year to Rmb11,005 million. Basic and diluted earnings per share were Rmb1.68 and Rmb1.65. Revenue amounted to Rmb71,575 million, an increase of 44.84% from a year earlier. This was mainly due to the rapid growth in sales volume of the Group's self-developed brand model products and the rapid development of various businesses such as auto-parts and automobile after-sales service in the upstream and downstream of the industrial chain. The proposed final dividend is Rmb43 cents (2016: Rmb22 cents) per share. The Board also proposed to issue to all shareholders 4 shares for every 10 shares by way of conversion of capital reserve.

HSBC lifts Chow Tai Fook (01929) to HK$11.3 HSBC Global Research lifted its target price for Chow Tai Fook Jewellery (CTF)(01929) to HK$11.3 from HK$8.8, and upgraded its rating to "buy" from "hold". The research house said Hong Kong jewellery retail sales contributed 38% and 23% of CTF's revenue and OP, respectively in 1H 2018. For every 1% increase in SSSG in Hong Kong/Macau, the company's net profit goes up by 1%. While its sensitivity to Hong Kong retail is not the highest among the three jewellers, HSBC believes it has the potential to outperform its peers in Hong Kong SSSG going forward, thanks to: (1) strong momentum in gem-sets in Hong Kong from 3Q 2017; (2) greater local clientele coverage than Luk Fook (00590) and Chow Sang Sang (00116). In FY2019, HSBC expects CTF's revenue from Hong Kong/Macau to grow 6.1%, up from flat previously, consequently its rental cost ratio in Hong Kong should drop to 5.2

i.century Holding (08507) kicks off IPO for HK$30m Hong Kong-based apparel service chain management (SCM) services provider i.century Holding Limited (08507) said it intends to offer a total of 120 million shares, comprising 108 million placing shares (subject to reallocation) and 12 million public offer shares (subject to reallocation) at an indicative offer price ranges from HK$0.5 and HK$0.6 per share. After deducting the related expenses, and assuming an offer price of HK$0.55 per share (being the mid-point of the indicative Offer Price range), net proceeds from the share offer are estimated to be HK$29.9 million. The public offer commenced today, and will end at noon on 6 April. The final offer price and results of allocation are expected to be announced on 13 April. Trading of shares is expected to commence on the GEM (Growth Enterprise Market) board of stock exchange on 16 April. Messis Capital is sole sponsor, while Astrum Capital

Chong Hing Bank year net up 10% to HK$1.56bn; div HK$0.39 Chong Hing Bank (01111) said its profit attributable to equity owners for the year ended 31 December 2017 rose 10.2% year-on-year to HK$1,565 million. Basic and diluted earnings per share were HK$2.17. Net interest income amounted to HK$2,317 million, an increase of 13.3% from a year earlier. Net interest margin at 1.52% was 14 basis points less than the same period last year. After excluding penalty cost factor, year over year net interest margin dropped 7 basis points. Operating profit before impairment allowances amounted to HK$1,356 million, a decrease of 6% year-on-year. With careful management on the exposure of credit risk, asset quality of loans and advances continued to be good with impaired loan ratio at 0.46%, non-performing loan ratio at 0.56%, down 0.08 percentage point, and provision coverage of impaired loans and advances at 182%. Total capital ratio increased fro

HSI Fall Deepens to Nearly 700 Pts to Test 30,100, Led by Tech Stocks, CN Financials Hang Seng Index suffered sharper losses after morning's close, compounding decreases from HKEX (00388.HK) -8.200 (-3.113%) Short selling $91.78M; Ratio 12.442% , PING AN (02318.HK) -3.400 (-4.069%) Short selling $1.02B; Ratio 30.531% and TENCENT (00700.HK) -20.000 (-4.627%) Short selling $941.92M; Ratio 10.185% . In last posting, the benchmark index tracked widened plunge to 679 pts or 2.2% to 30,111, on turnover of $121.7 billion. HKEX and PING AN dived below 100MA ($260.7 and $83.15). After midday, they last traded at $255.8 and $80.5 respectively, down 2.9% and 3.7%. AIA (01299.HK) -2.000 (-2.972%) Short selling $144.88M; Ratio 22.558% and CHINA LIFE (02628.HK) -0.400 (-1.802%) Short selling $78.93M; Ratio 20.273% slipped over 2% to $65.75 and $21.7. Four major blue-chip Chinese banks dropped 1%-1.7%. CCB (00939.HK) -0.220

CITIC Annual Net Profit Up 1.8% to $43.902B; Final Div $0.25 CITIC (00267.HK) -0.160 (-1.447%) Short selling $8.89M; Ratio 25.055% announced that for the year ended December 2017, net profit rose 1.8% yearly to $43.902 billion, with an EPS of $1.51. A final dividend of $0.25 was declared. Profit contribution from financial sector of the company amounted to $39.5 billion, up 3% yearly. CITIC Construction continued to make inroads securing projects, both domestically and internationally, particularly along the Belt and Road corridor.

Nomura Cuts TENCENT(00700.HK) TP to $520, Reiterates Buy Nomura stated in its report that TENCENT(00700.HK) -17.400 (-4.026%) Short selling $941.92M; Ratio 10.185% 's 4Q17 revenue missed estimates, dragged by lower online gaming revenue. The research house expected the mobile game revenue of TENCENT will see strong rebound with estimated full-year growth of 43%. The broker trimmed the projected 2018-19 EPS by 4% and 6% and reiterated the rating Buy on TENCENT at the target price $520, down from $536, indicating a 20% upside.

Singamas Cont year net turns black to US$41.45m;div HK2.5cts Singamas Container (00716) said it reported a profit attributable to owners of US$41.45 million for the year ended 31 December 2017, as compared to the loss of US$59.43 million for the previous financial year. Basic and diluted earnings per share were US1.72 cents. Revenue amounted to US$1,477 million, an increase of 61.1% from a year earlier. Singamas Container said the global economy began to improve during the review year, leading to a rise in international trade. As a consequence, shipping volume increased, particularly in the PRC, which drove demand for containers. The proposed final dividend is HK2.5 cents (2016: nil) per share.

Tianjin Dev year net down 5% to HK$489m; div HK4.55 cts Tianjin Development (00882) said its profit attributable to owners for the year ended 31 December 2017 dropped 5.1% year-on-year to HK$489 million. Basic and diluted earnings per share were HK45.57 cents and HK45.53 cents. Revenue amounted to HK$6,988 million, an increase of 14.4% from a year earlier. The proposed final dividend is HK4.55 cents (2016: HK5.09 cents) per share, payable on or about 13 July.

Citi lifts WH Group (00288) to HK$9.46 Citi Research raised its target price for WH Group (00288) to HK$9.46 from HK$8.9, and reiterated its "buy" rating. The research house believes the market has been overly concerned about the negative impact of escalated Sino-US trade tension on Smithfield, which has developed a diversified portfolio of export markets and a vertically integrated business model (in both US and Europe) to mitigate risk of a bilateral trade relationship. Benefit of US tax reform will also reduce its earnings risk associated with China sales volume in 2018 and onwards, Citi added. It noted that management expects its packaged meat volume to grow by high-single digit and fresh pork volume to expand by double digits in 2018. They also anticipated its packaged meat EBIT margin in 2018 to be higher than that in 2017.

Asia credit conditions remain strong but trade war risks up A spiraling U.S.-China trade dispute could upset otherwise stable credit conditions in the Asia-Pacific, S&P Global Rating said today in an article titled, "Asia-Pacific March 2018--Risk Of China-U.S. Trade War Escalates." "Fears of a China-U.S. trade war cloud positive momentum in the Asia-Pacific's macroeconomic outlook, financial conditions, and sector trends," said S&P Global Ratings credit analyst Terry Chan. The credit rating agency has raised the risk level of trade interruption and geopolitical tensions to "high" from "elevated" following U.S. President Donald Trump's recent package of China-specific trade penalties. While Beijing's response has been moderate thus far, the risk of escalation is rising, it noted. "A trade war involving China could affect Asia-Pacific business activity and growth, given reg

HSBC lifts CNBM (03323) to HK$9; "hold" HSBC Global Research lifted its target price for CNBM (03323) to HK$9 from HK$8.5, and reiterated its "hold" rating. The research house cited management at the analyst briefing expecting volumes to be slightly lower in 1Q 2018 due to poor weather conditions in January-February, and the NPC meeting in March. It expects GP/t to be around RMB100/t in 1Q. Regarding the merger deal with Sinoma (01893), the company expects the deal to be completed by May. HSBC believes synergy in cement will come from higher market concentration and joint procurement of raw materials and power. There could also be cost savings in the engineering and new material businesses, particularly in the fiberglass segment. HSBC has not incorporated Sinoma in our estimate at this stage, and it increased its FY2018-19 GP/t assumptions by around Rmb9/t. As a result, HSBc lifted its earnings estimates by 8%/7% fo

Macquarie cuts Uni-President China to HK$7.8 Macquarie Research lowered its target price for Uni-President China (UPC)(00220) to HK$7.8 from HK$8.4, and reiterated its "buy" rating. The research house said UPC's 2H 2017 revenue came in 2.9% behind Macquarie's estimate due to softer instant noodles sales. Meanwhile, net profit arrived at Rmb309m, implying losses narrowed from Rmb149m in 4Q 2016 to Rmb57m in 4Q 2017. After smoothing out the quarterly sales fluctuations and normalizing channel inventory last year, Macquarie expects UPC to deliver 20% YoY net profit growth this year. But it lowered its FY2018 and FY2019 earnings by 8.3% and 7.1% respectively. After four years of volume decline, China's noodle market saw volume resuming small positive growth of +0.3% YoY in 2017. Macquarie maintained its positive view on the premiumization strategy and expects noodle operating profit margin to further edge up 0.2ppt YoY to

M Stanley Raises SINOPEC CORP Target to $8.33; Changing to High-yield Play Positive to Long-term Investors Market was believed to start realizing SINOPEC CORP (00386.HK) -0.040 (-0.577%) Short selling $134.58M; Ratio 22.368% will change to high-yield play in next few years after results announcement, which is a positive strategy to long-term investors, Morgan Stanley said in its report. A payout ratio of 75% in 2018 could imply a yield of 7.4%; while if the payout is lifted to 100%, the yield could touch 9.9%. The oil stock was retained at Overweight with target price raised to $8.33 from $7.64.

Macau Latest Jobless Rate Edges Up to 1.9% Information from the Statistics and Census Service (DSEC) indicated that both the general unemployment rate (1.9%) and the unemployment rate of local residents (2.5%) for December 2017-February 2018 increased slightly by 0.1 percentage point from the previous period (November 2017 - January 2018). Meanwhile, the underemployment rate remained unchanged at 0.4%.

Credit Suisse Raises CHINA OVERSEAS (00688.HK) Target to $36.3; Rated Outperform Credit Suisse stated in its research report that CHINA OVERSEAS (00688.HK) +1.150 (+4.244%) Short selling $90.64M; Ratio 18.410% 's 2017 core profit rose 21% yearly to $32.6 billion, 9% and 8% below its and street expectations, while the 32.9% gross profit margin beat its estimates. The dividend yield equaled 3%. The broker has confidence in CHINA OVERSEAS (00688.HK) +1.150 (+4.244%) Short selling $90.64M; Ratio 18.410% 's recovery in operation, given the quality saleable resources, strong balance sheet and improving execution, for which the company was kept rated Outperform at the target price $36.3, lifted from $35.7.

HKTV (01137.HK) Annual Loss Narrows to $205M; Nil Div HKTV (01137.HK) -0.300 (-8.130%) Short selling $56.27K; Ratio 0.659% announced the results for the year ended December 2017. The loss narrowed to $205 million with LPS of $0.25. No dividend was declared.

M Stanley Latest Ratings, TPs on Casinos (Table) Shares│Ratings│Target prices (HK$) WYNN MACAU (01128.HK) +1.050 (+3.737%) Short selling $3.00M; Ratio 1.610% │Equalweight->Overweight│30.5->33 MGM CHINA (02282.HK) +0.400 (+1.946%) Short selling $1.35M; Ratio 0.936% │Overweight│27 GALAXY ENT (00027.HK) +0.900 (+1.255%) Short selling $95.00M; Ratio 16.848% │Overweight│64->80 SANDS CHINA LTD (01928.HK) +0.700 (+1.661%) Short selling $41.24M; Ratio 11.715% │Equalweight│42->46 SJM HOLDINGS (00880.HK) -0.090 (-1.289%) Short selling $19.95M; Ratio 24.517% │Underweight│7.4->7.3

Fufeng Group year net up 26.5% to Rmb1.38bn; div HK11 cts Fufeng Group (00546) said its profit attributable to the shareholders for the year ended 31 December 2017 rose 26.5% year-on-year to Rmb1,382 million. Basic and diluted earnings per share were Rmb57.04 cents and Rmb55.46 cents. Revenue amounted to Rmb13,033.5 million, an increase of 10.4% from a year earlier. The increase in revenue was primarily due to the increase in annual production capacity by means of newly enhanced production technology, and the increase in the ASP and sales volume of threonine, high-end amino acid products, starch sweeteners and xanthan gum. Gross profit margin of the Group increased to about 22.9% (2016: 20.4%). The proposed final dividend is HK11 cents (2016: HK7.8 cents) per share, payable on or about 15 June.

SinoMedia year net turns black to Rmb93.04m; div HK8.86 cts SinoMedia (00623) said it reported a profit attributable to equity shareholders of Rmb93.04 million for the year ended 31 December 2017, as compared to the loss of Rmb27.07 million. Basic and diluted earnings per share were Rmb17.7 cents. Revenue amounted to Rmb1,473 million, an increase of 13.3% from a year earlier. The proposed final dividend is HK8.86 cents (2016: nil) per share, payable on or about 5 July.

Morgan upgrades Wynn Macau (01128) to HK$33 Morgan Stanley lifted its target price for Wynn Macau (01128) to HK$33 from HK$30.5, and upgraded its rating to "overweight" from "equal-weight" on strong growth momentum, a better dividend outlook, the removed overhang, and eased concerns over concession renewal. With the stake sale by Steve Wynn and Galaxy's investment, most of the overhang related to Wynn Macau is removed, the research house said. It revised up its EBITDA forecasts for both the Peninsula and Cotai properties by 6%-7%, and lifted company EBITDA to HK$11.5bn and HK$12.4bn in 2018/19.

Morgan ups Galaxy Entertainment to HK$80 Morgan Stanley lifted its target price for Galaxy Entertainment (00027) to HK$80 from HK$64, and reiterated its "overweight" rating. The research house said the price target upgrade reflects the strong 4Q 2017 result. It said that Galaxy adds growth optionality in the medium term, including Phase 3 & 4 (more than 10m sq. ft of GFA), Hengqin, the Philippines Boracay casino with a total investment of US$500m, and a potential license in Japan (working together with Wynn Resorts after acquiring 5% stake in it. Morgan raised Galaxy revenue and EBITDA forecasts by 4%-9% in 2018/19 from the strong 4Q 2017 run-rate.

Morgan lowers SJM Holdings (00880) to HK$7.3 Morgan Stanley lowered its target price for SJM Holdings (00880) to HK$7.3 from HK$7.4, and reiterated its "underweight" rating. The research house thinks SJM will remain a growth laggard in 2018/19 because of the delay in the opening of Grand Lisboa Palace to 2H 2019. Morgan is also conservative on the EBITDA potential of Grand Lisboa Palace as the property is not easily accessible. It expects dividends to remain flattish or down in 2018/19 as capex for Cotai grows. Morgan slightly cut SJM's EBITDA by 2% to reflect a weak EBITDA margin at Grand Lisboa.

HSI Spikes 277 Pts; AAC TECH Soars 6.8% U.S. stocks marked the steepest single-day growth since August 2015 last night, indicated by Dow Jones Industrial Average ending up 669 pts or 2.8%, as market concern over China-U.S. trade war eased off a bit. This morning, Hang Seng Index, after elevating 436 pts at open, once tracked narrowed increase. At midday, the benchmark index mounted 277 pts or 0.9% to 30,826. Hang Seng China Enterprises Index added 107 pts or 0.9% to 12,305. Half-day market turnover reached $74.501 billion. TENCENT (00700.HK) +6.600 (+1.547%) Short selling $1.06B; Ratio 11.233% rose 1.9% to $434.6. AAC TECH (02018.HK) +6.000 (+4.141%) Short selling $70.81M; Ratio 9.426% , ahead of results announcement today, shot up 6.8%, being the strongest performer of blue chips. SUNNY OPTICAL (02382.HK) +2.800 (+1.772%) Short selling $67.81M; Ratio 11.903% leaped 2.2%. COWELL (01415.HK) +0.060 (+2.778%) Short selling $670

M Stanley: PICC P&C(02328.HK) 2017 Profit Slightly Misses Estimates, Conservative Div. Morgan Stanley maintained PICC P&C(02328.HK) -0.520 (-3.325%) Short selling $134.19M; Ratio 33.030% rated Overweight at the target price $21.2. The broker stated in its report that the company's 2017 earnings grew 10% yearly, slightly below forecasts. The payout ratio was flattish year on year at 25%, lower than most major peers' over 30%.

KWG PROPERTY: Div Payout Held at 30-40% for Years Kong Jian Min, the Chairman of KWG PROPERTY (01813.HK) -0.880 (-7.547%) Short selling $15.93M; Ratio 9.752% , said at the press conference that the financial condition of the company is healthy. Tsui Kam Tim, the CFO of the company, mentioned that the dividend payout of the company has been maintained at 30-40% in past few years, stressing on stable dividend of the company.

Nomura lifts ZTE Corporation (00763) to HK$27 Nomura lifted its target price for ZTE Corporation (00763) to HK$27 from HK$25, and reiterated its "neutral" rating. The research house said ZTE reported a solid growth in revenue and bottom-line in FY2017. Excluding one-off gains, the normalised earnings also grew healthily for ZTE, indicating a gradual recovery in fundamentals. Nomura believes a strong data traffic growth momentum due to policy headwinds and competition in the telco segment will help to increase equipment demand during a capex down cycle which should benefit ZTE. On the other hand, Nomura still see uncertainties in 5G deployment in terms of timing, scale and technology. Hence, it lowered its FY2018-19 earnings forecasts slightly by 2-3%, while it believes ZTE will stick to its minimum requirement for the stock incentive plan.

Nomura lifts Logan Property (03380) to HK$13.7 Nomura lifted its target price for Logan Property Holdings (03380) to HK$13.7 from HK$8.4, and reiterated its "buy" rating. The research house said Logan reported strong FY2017 results. For FY2018F-20, management guided for gross margin around 35.0% and net margin around 15%-16%, net gearing around 60%-80%, and 40% dividend payout is sustainable. Nomura noted that Premier Li Keqiang, during NPC and CPPCC in March 2018, reaffirmed the target to build Greater Bay Area (GBA) to a world-class city cluster, and the planning outline will be released soon. Logan has abundant saleable resource of CNY519bn (CNY337bn of current landbank and CNY182bn of M&A and urban renewal in the pipeline), of which 80% is located in GBA.

Nomura lifts ENN Energy (02688) to HK$70 Nomura lifted its target price for ENN Energy Holdings (02688) to HK$70 from HK$58.5, and reiterated its "neutral" rating. The research house raised its 2018/19 earnings by 6%/3% as it increased its new residential connection numbers by 8%/10% for the two years. Nomura forecast ENN Energy to deliver 11% EBITDA CAGR (or 20% earnings CAGR) in 2018-19 driven by strong gas volume growth, despite mild dollar margin pressure. However, after the recent strong share price rally wipes off most of the potential upside, Nomura suggested investors continue to wait for a better entry point.

CHINA OVERSEAS (00688.HK) Annual Net Profit $40.77B, Up 10.1%; Final Div 45 Cents CHINA OVERSEAS (00688.HK) -0.700 (-2.532%) Short selling $51.94M; Ratio 21.482% announced annual result ended December 2017. The turnover rose 1.2% year on year to $166.045 billion. The net profit amounted to $40.767 billion, up 10.1% yearly. EPS was $3.72. A final dividend of 45 cents was declared. Together with the interim dividend of 35 cents, the full-year dividend totaled 80 cents, versus 77 cents in 2016.

Trade War Dampens Stock Mkt; Tencent Prospect Still Promising Stanley Chik, research head at Bright Smart, said "Winter is Coming", a well-known line from the US TV drama series "Game of Thrones", is incredibly suitable for describing Hong Kong stocks last week. The market was hit hard by two headwinds - the reported results miss of TENCENT (00700.HK) +5.000 (+1.190%) Short selling $475.42M; Ratio 5.147% , followed by Naspers' sharp share reduction; and potential China-US trade war. While global market was on bumpy ride, Hang Seng Index relapsed to 30,000 level. As to whether Naspers' share disposal indicates its bearish view on TENCENT, Chik stated that the reduction is not clueless, given investors had been reportedly requesting Naspers to "do something" in past year; besides, the substantial shareholder guaranteed it would not trim stake for at least three years, reflecting it was not rush to slash stake. Las