Neutral SELL. Recognized revenue to reach Rmb29.6bn/42.0bn/61.0bn in FY18/19/20, respectively;

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1 Focus of the Day KWG Property (1813.HK) 1H17 results in line; positive on outlook and new strategy Philip Tse, CFA Last Closing: HK$ 6.30 Upside: +25.1% Target Price: HK$ 7.88 We view KWG's 1H17 results as largely in line with proportionate turnover up 8.7% YoY to Rmb9.4bn and GPM well maintained at 36.0%. We think the key positives are mainly related to the new 3-year plan which targets to accelerate asset turnover with ambitious sales, revenue and profit targets: To achieve Rmb100bn sales in 2020 (total basis); Recognized revenue to reach Rmb29.6bn/42.0bn/61.0bn in FY18/19/20, respectively; Rental income to reach Rmb3bn by 2020; and Net margin to stay at 15-20% with net core profit CAGR at 30-40% to reach Rmb9bn by Other key highlights of 1H17 results include: Proposed an interim dividend of Rmb0.10/shr and targets to maintain full-year payout ratio at 30-35% Acquired 25 projects YTD with attributable GFA of 4.2m sq m at an average land cost of ~Rmb7,523/sq m (excluding HK projects), bringing total landbank to 15.7m sq m (estimated Rmb320bn saleable resources); and Net gearing dropped by 1.4ppts to 65.4% with borrowing cost dropping 0.2ppt to 5.8%. Indices Close 1d % Ytd % HSI 27, H Shares 11, SH A 3, SH B SZ A 2, SZ B 1, DJIA 21, S&P 500 2, Nasdaq 6, FTSE 7, CAC 5, DAX 11, Source: Bloomberg Indicators Close 3m % Ytd % Brent Gold 1, Silver Copper 6, JPY GBP EURO bps change 3 m 6 m HIBOR US 10 yield Source: Bloomberg HSI Technical HSI 27, d MA 26, d MA 24, d RSI 62 Short Sell (HK$ m) 10,049 Source: Bloomberg Valuation and recommendation. The key surprises of 1H17 results were mainly the higher ASP achieved, the change in strategy to ignite scale growth and the ambitious 3-year plan. We believe KWG s GPM can be maintained at ~35%+ on rising ASP. Even if the company can only achieve part of the 3-year plan, its ROE will still be improved which is positive to shareholders as it is now focusing on both scale and margins, in our view. We raise our NAV estimate to HK$14.33 (old: HK$13.76) given a better sales outlook, rising ASP and the faster asset turnover strategy. We maintain rating on

2 the counter and raise our target price to HK$7.88, representing a 45% (old: 50%) discount to NAV. Shimao Property (813.HK) 1H17 results in line; positives on FY18/19 outlook Philip Tse, CFA philip.tse@bocomgroup.com Last Closing: HK$ Upside: +17.4% Target Price: HK$ We view Shimao s 1H17 results as largely in line with expectation. Revenue increased 19.3% YoY to Rmb35.8bn with GPM increasing slightly by 1.4ppts to 29.6% in 1H17. Excluding one-off disposal gain in 1H16, core profit increased 27.6% YoY. Shimao declared an interim dividend of HK$0.4/share, representing a 32% payout on core profit. Other key highlights and guidance are as follows: Revenue recognition growth is expected to be slow, but management expected FY17 GPM to surpass 30% and further improve in FY18/19; Shimao raised FY17 sales target from Rmb80bn to Rmb88bn and expects sales growth to surpass 30% in FY18 and FY19; Net gearing ratio dropped slightly by 0.9ppt to 52.5% with blended borrowing cost dropping further by 0.2ppt to 5.6%; and Shimao guided to full-year land acquisition target at over Rmb35bn (attributable basis) and expects full-year net gearing to be over 60%. Undemanding valuation on a quality stable growth player. While the results were largely in line, we see more positives from FY17 onwards on (i) gross margin improvement; (ii) accelerating sales growth; (iii) improved execution ability; and (iv) positive outlook on profit growth from FY17 to FY19. We believe sales and ASP growth will help restore investor confidence on Shimao s execution ability which helps the counter to further re-rate. The counter is currently trading at a 57.4% discount to NAV and 5.6x/4.9x FY17/18E PE which looks undemanding, in our view. We maintain our rating on the counter with target price at HK$16.5, based on a 50% discount to NAV. Hang Seng Index (1 year) 29,000 28,000 27,000 26,000 25,000 24,000 23,000 22,000 21,000 20,000 Source: Company data, Bloomberg HS China Enterprise Index (1 year) 12,000 11,000 10,000 9,000 8,000 Source: Company data, Bloomberg Shanghai A-shares (1 year) 3,600 3,400 3,200 3,000 2,800 Source: Company data, Bloomberg Shenzhen A-shares (1 year) 2,300 2,100 1,900 1,700 PSBC (1658.HK) Interest margin remained stable and asset quality remained solid Shanshan Li, CFA Last Closing: HK $4.66 lishanshan@bocomgroup.com Not Rated Source: Company data, Bloomberg In 1H17, PSBC s net profit attributable to equity holders of the parent co. increased by 14.51% YoY to RMB26.6 bn. The growth in earnings was mainly attributable to cost control and an expansion in scale. However, provisions dragged earnings growth by 15 ppts. In 1H17, the increase in assets and liabilities was mainly contributed by loans and deposits. On asset side, the company squeezed non-standard assets and squeezed interbank liabilities on the liabilities side. By the end of the period, deposits accounted for

3 97% of the debt portfolio of the company, the ratio of loans to deposits rose by 1.5 ppts from early 2017 to 42.8%. In 1H17, the interest margin remained stable and widened QoQ in Q2, mainly driven by a moderate decline in the net interest spread of deposits and loans, and the proportional increase in deposits and loans partially offset the decline in interest spread between deposits and loans and that of interbank businesses. Asset quality remained solid, with NPL down 0.03 ppt HoH to 0.82%. In 1H17, NPL growth rate was 0.28%, down approx ppt compared with Q1. Overdue loans accounted for 0.99%, up 0.03 ppt compared with early The ratio of loans overdue for more than three months to NPLs was 90.9%. The company issued an announcement regarding a proposed issue of no more than bn A shares (i.e. no more than 6% of the total share capital upon A share issue). Such share issue will not include any shares likely to be issued under an over-allotment option. NCI (1336.HK) Notable achievement in transformation towards value, but the stock is fairly valued Li Wan, CFA wanli@bocomgroup.com Last Closing: HK$ Upside: -0.9 % Target Price: HK$ NCI reported that net profit attributable to shareholders of the parent company dropped 2.9% YoY to RMB3.227bn in 1H17, 7.4% below expectation. Operating profit was 4.7% above our expectation, but profit tax was much higher than expectation, leading to the earnings miss. Premium income declined in 1H17, as the company scaled back the single premium business, despite contribution from renewal and regular premiums. Growth of regular premiums with payment periods of 10 years or more accelerated. Business mix was further optimized, with notable increase in the contribution of first-year regular premiums, especially regular premiums with payment periods of 10 years or more. The transformation towards protection business was obvious, with a significant increase in the contribution of health insurance to first-year premiums. The NBV margin increased notably. In terms of asset allocation, the proportion of term deposits decreased while that of bonds increased. ROI declined slightly YoY. We see upside to ROI as wealth management products expiring in 2H17 will be reinvested. We adjust 17/18E forecast earnings by -5.1% (raised profit tax assumption)/+5.6% (lowered provision for insurance liabilities), NBV by +1.9%/+1.2%, and EV by +2.4%/+4.5%, respectively. We raise TP from HK$50 to HK$52, corresponding to 0.9x 17E P/EV. Despite the notable shift of focus towards value in 1H17, we believe the stock is fairly valued from a short-term perspective. Moreover, the new regulations on personal insurance will start to have adverse impact on premium income in 4Q17. We maintain rating.

4 China Cinda (1359.HK) Increased provisions for restructuring assets resulted in lower profit before tax of the major business of distressed assets Shanshan Li, CFA Last Closing: HK$ 3.22 Upside: +10.6% Target Price: HK$ 3.56 In 1H17, China Cinda s net profit attributable to equity holders of the parent co. reached RMB8.882 bn, representing an increase of 10.9% YoY and a slight increase in growth rate compared with FY16. EPS was RMB0.23. The growth in earnings was mainly attributable to investment and asset management (gains from disposal of Cinda Property and Casualty Insurance). Operating profit before tax of distressed assets declined by 37% and its contribution to earnings declined substantially, mainly due to a notable increase in impairment loss of receivable distressed debt assets. The notable increase in the contribution of investment and asset management businesses was mainly due to net gains of RMB3.37 bn from the disposal of Cinda Property and Casualty Insurance. The balance of traditional distressed debt assets and distressed debt assets with restructuring conditions increased by 14.8% and 5.8%, respectively compared with early 2017, representing a slower growth than Huarong. The company automatically made structural adjustments and yields of restructuring assets declined while that of traditional distressed assets remained stable. Impaired restructured distressed debt assets accounted for 2.13% of total, up 0.35 ppt vs. the beginning of the year. The industry distribution of distressed assets was optimized, with a steady decline in the concentration in the real estate industry, with further concentration in the high-quality large clients in tier-1 and tier-2 cities. The proportion of wholesale and retail, transportation, warehouse and postal industries declined. Synergies with Nanyang Commercial Bank was observed. We raise our assumptions on interest expense and asset impairment provision. We lower our 17/18E earnings forecasts by 5.4%/6.5%, and currently forecast 8.4%/7.4% earnings growth in 17/18E. Maintain TP of HK$3.56, downgrade the stock from Buy to. China Railway Construction (1186.HK) 1H17 results review - revenue boosted by solid contract pipeline Fay Zhou fay.zhou@bocomgroup.com Last Closing: HK$ Upside: +19.1% Target Price: HK$ CRCC reported 12.0% YoY increase in net profit for 1H17 to Rmb6.5bn. The result is largely in line with the market s and our expectations. Revenue rose by 8.3% YoY, while gross margin was down from 10.3% in 1H16 to 8.8% in 1H17. New contract value for 1H17 and backlog rose 46.9% YoY and 12.0% YoY, respectively. We maintain recommendation and target price of HK$12.10 at the moment.

5 Kangda (6136.HK) Strong set of 1H17 results should support re-rating Wallace Cheng Last Closing: HK$ 1.50 Upside: +57% Target Price: HK$ 2.35 Kangda s 1H17 net profit surged 56.4% YoY on the back of strong execution of PPP projects and increase in investment in Zhongyuan Asset Management. Since July, construction in Dongsheng City ( 东升市 ) and Fuzhou City ( 抚州市 ) PPP projects has also started (with investment amount of ~RMB1.7bn). We see there is still further room for lifting our forecast on PPP construction revenue, if Kangda could deliver better execution on existing projects or earlier commencement of construction in the new projects. We lift E net profit forecasts by 2.1%/0.9%/2.4%, respectively, to factor in: (i) better utilization rate in operating projects; and (ii) higher contribution from associates. We forecast net profit CAGR to reach 25.7% during E. We view the 1H17 results as strong evidence for earnings growth reacceleration on better project execution. Maintain Buy. China Comm Cons (1800.HK) 1H17 results review steady earnings growth delivered, in line with expectation Fay Zhou fay.zhou@bocomgroup.com Last Closing: HK$ Upside: +16% Target Price: HK$ CCC reported 8.4% YoY increase in net profit for 1H17 to RMB7.9bn. The result is in line with our expectation. Margin performance in 1H17 also saw steady improvement. New contract value for 1H17 surged 52.0% YoY. Backlog of contracts amounted to RMB1.3 trillion, representing an increase of 20.9% YoY. We made minor adjustments to our earnings forecasts for FY We maintain recommendation but revise target price to HK$ CEA (670.HK) 1H17 results review disposal gain supported earnings performance Geoffrey Cheng, CFA geoffrey.cheng@bocomgroup.com Last Closing: HK$ 4.23 Upside: +5.9 % Target Price: HK$ 4.48 Earnings of China Eastern Airlines (CEA) rose 34.4% YoY to RMB4,341m on the back of 4.5% YoY increase in revenue and disposal gain of RMB1,754m. We believe CEA has benefited from its Shanghai hub to report an increase in domestic passenger yield. Looking ahead, we are concerned if CEA could push yield higher amidst keen competition.

6 We maintain our NEUTRAL recommendation and our target price of HK$4.48 for CEA, which is still our preferred play of the China aviation sector at the moment. CSA (1055.HK) 1H17 result review margin pressure mounted, and thanks to the strong RMB Geoffrey Cheng, CFA Last Closing: HK$ 5.91 Upside: +4.9% Target Price: HK$ 6.20 China Southern Airlines (CSA) reported a net profit of Rmb2,772m, down 11.1% YoY, in 1H17. Due to higher-than-expected operating expense increase, operating margin tumbled to 7.6%, even lower than 9.1% in 2H16. We think competition could continue to suppress passenger yield as the major PRC airlines reshuffle capacity from international routes to the domestic market. We expect short-term share price pressure due to the lackluster interim result. We reiterate our NEUTRAL recommendation for CSA for the time being. Shanghai Pharm (2607.HK) Slowdown in business growth, strong impetus for industrial growth Grace Zhao grace.zhao@bocomgroup.com Last Closing: HK$ Upside: +22.5% Target Price: HK$ Shanghai Pharm announced interim results. During the reporting period, revenue increased 10.19% YoY to RMB65.78bn and net profit attributable to shareholders climbed 11.12% YoY to RMB1.925bn. Overall growth was stable. Under the impact of the two-invoice system, the company s 1H17 distribution revenue rose 9.64% YoY but operating margin declined 0.05 ppt YoY to 2.74%, slightly below our estimate. The company delivered handsome results with strong organic growth in the industrial segment. Revenue grew 17.03% YoY and profit margin reached a new high at 70.2%. Meanwhile, outperformance in consistency assessment together with potential M&As in overseas market give strong impetus to the industrial segment. We project 2017/2018 EPS to grow by 12.0%/11.5% to RMB1.33/1.48. We cut TP to HK$23.6, implying 15.0x/13.4x 2017/2018E PE. Maintain Buy.

7 D&G Technology (1301.HK) 1H17 results review earnings growth lower than the profit alert Fay Zhou Last Closing: HK$ 0.87 Upside: +8% Target Price: HK$ 0.94 D&G Technology reported a growth of 38.9% YoY in net profit on the back of a 46.6% YoY increase in revenue in 1H17. However, the reported earnings growth is much lower than the profit alert. Sales of asphalt mixing plants increased in both domestic and overseas markets. We downgrade D&G to NEUTRAL recommendation with a target price of HK$0.94 after earnings revision. Beijing Jingneng (579.HK) Interim results in line but new investments declined sharply; downgrade Louis Sun louis.sun@bocomgroup.com Last Closing: HK$ 2.15 Upside: +4.2% Target Price: HK$ 2.24 In 1H17, the company s revenue increased 1.76% YoY to RMB6.857bn and net profit attributable to ordinary shareholders increased 3.9% YoY to RMB1.051bn. Basic earnings per share was RMB0.153 and no interim dividend was declared. The company's interim results came basically in line with our and Street estimates. Breaking down by business segments, the company performed slightly better-than-expected in gas and PV but missed forecast in wind power. Hydropower remained sluggish. The company generated billion kwh of power in 1H17, up 0.94% YoY. Capex was only RMB734m in 1H17, down substantially by 62.8% from RMB1.975bn in the same period last year. We expect the company s full-year new installed capacity to be lower than that of last year. We maintain our 17/18 EPS forecast at RMB0.295/0.344 unchanged until the company holds its results briefing on 30 August. Meanwhile, the company s resolution of placing new shares to controlling shareholders has been passed in the general meeting. We expect the deal to complete in 2H17. We cut TP from HK$2.67 to HK$2.24, corresponding to 6.5x PE and 0.8x PB based on our 2017 forecasts. Downgrade from -Buy to.

8 Market Review Hong Kong stocks fell on Tuesday. The Hang Seng Index dropped 98 points, or 0.4%, to close at 27,765. Hong Kong property names retreated. Wharf (4.HK) dropped 1.7% as the worst blue-chip performer. CK Property (1113.HK) shed 0.9%. Insurers generally declined. China Life (2628.HK) dropped 1.6%. CPIC (2601.HK) slumped 3.5%. However, Ping An (2318.HK) gained 0.2%. Smartphone component makers advanced. AAC Tech (2018.HK) extended gains, rising 3.1% as the best blue-chip performer. Cowell (1415.HK) jumped 7.2%. Q Technology (1478.HK) surged 14%. Casino operators rebounded. Galaxy Entertainment (27.HK) rose 2.7%. Sands China (1928.HK) added 1.3%. Wynn Macau (1128.HK) rose 1.8%. US stocks rose. The S&P 500 gained 2.06 points, or 0.1%, to 2, The DJIA rose points, or 0.3%, to close at 21, The Nasdaq Composite Index added points, or 0.3%, to finish at 6, European stocks fell. Stoxx Europe 600 dropped 1.04% to close at News Reaction Shenzhen plans to form 3 to 5 state-owned rental housing companies by end The Shenzhen Municipal Government issued the implementation opinions on the development of rental housing, which propose to form 3 to 5 state-owned rental housing companies by the end of 2017, and procure not less than 100,000 housing units by 2020 through construction, alteration, acquisition, leasing and other methods for conducting rental housing business. The opinions also aim to procure not less than 1 million sets of self-built or collectively owned houses in villages. PBOC launched RMB50bn reverse repos at flat interest rate. The PBOC conducted 7-day RMB50bn of reverse repos in the open market on 29 August. The interest rate stayed flat at 2.45%. Based on this, there was a net investment of RMB10bn on the day. Yu Liang said Vanke is invited by some companies to participate in their mixed ownership reforms. Vanke Chairman Yu Liang said Vanke, as a representative sample of the mixed ownership reform, is invited by some companies to participate in their reform programs. Regarding which reform programs to participate, Vanke stresses on the value-adding effect to companies and thinks money investment alone makes no significant meaning, Yu added. Hurricane halts Texas oil production & refineries; US energy stocks under hefty selling. Hurricane Harvey landed in Texas, the US, causing five deaths and dozens injured and missing. Oil production and refineries halted there, causing New York oil futures to dive 2.7%. US energy stocks saw hefty selling. Denbury Resources Inc. plunged 6.5%. Chesapeake Energy Corp. pulled back 3.7%. Oil stocks were also subdued. Chevron and Exxon Mobil dropped about 0.4% and over 0.3%. Apple to roll out iphone8 on 12 Sep. Apple Inc. will launch the new products at a conference on 12 September in which three iphones and one smart watch are expected to be rolled out, sources said. In the ten-year anniversary of the original iphone, Apple Inc. will present iphone8 that features an all-glass frameless display and facial recognition

9 technology, with the physical home key bottom ditched. Apple Inc will also launch two upgraded versions of iphone7.

10 Economic releases for this week - USA Date Time Event Survey Prior 30-Aug MBA mortgage applications (%) Aug Initial jobless claims (k) Sep Change in Non-farm payrolls(k) Sep Change in Private payrolls(k) Sep Unemployment rate (%) Source: Bloomberg Economic releases for this week - China Date Time Event Survey Prior 31-Aug Manufacturing PMI Source: Bloomberg BOCOM Research Latest Reports Date Report Analyst 29 Aug China Market Strategy - Cycle Sentiment Hao Hong, CFA 29 Aug MSB (1988.HK) - Q2 non-core assets and liabilities shrank; overdue NPL spread remained high Li Wan, CFA, FRM, Shanshan Li, CFA, Hannah Han 29 Aug O-net Technologies (877.HK) - Growth outlook remains promising; Maintain Chris Yim 29 Aug Transportation and Infrastructure Sector - Weekly transportation and infrastructure news wrap Geoffrey Cheng, CFA, Fay Zhou, Luya You 29 Aug SinoPharm (1099.HK) - Distribution business under pressure; looking forward to M&As Grace Zhao 29 Aug Dongfeng Group (489.HK) - 1H17 net profit edged up 4.2% YoY; Maintain on mixed performance on JVs Angus Chan 29 Aug Agile Property (3383.HK) - Positive 1H results on GPM and profit outlook; upgrade to Philip Tse, CFA, FRM, Aflred Lau, CFA, FRM 28 Aug China Aviation Sector - 1H17 results preview: lackluster yields dampened performance during the period Geoffrey Cheng, CFA 28 Aug Harbin Bank (6138.HK) - Inter-bank assets and liabilities contracted but there remained huge pressure on asset quality Li Wan, CFA, FRM, Shanshan Li, CFA, Hannah Han 28 Aug China Everbright Bank (6818.HK) - Q2 balance sheet shrank; overdue NPL spread narrowed Shanshan Li, CFA, Li Wan, CFA, FRM, Hannah Han 28 Aug Liquidity - Liquidity improved; Sept funds supply to tighten /08/25 Karen Tan 28 Aug CT Environmental Group (1363.HK) - No positive catalyst in sight; Maintain Wallace Cheng 28 Aug Great Wall Motor (2333.HK) Focus on the sales pace; upgrade to Angus Chan 28 Aug Yunnan Water (6839.HK) - Cloudy outlook in the short term Wallace Cheng 28 Aug Brilliance China (1114.HK) - Upgrade to Buy on robust earnings growth in FY18 and sustain demand from its new model pipelines Angus Chan 28 Aug China Market Strategy - A Definitive Guide to China s Economic Cycle Part II - New High Hao Hong, CFA 28 Aug AAC Technologies (2018.HK) - Better optics outlook and acoustics upgrade lead to a strong 2018 outlook Chris Yim 28 Aug Tongda Group (698.HK) - Transitioning from metal casing story to the next growth drivers Chris Yim 28 Aug Cement sector - Cement prices continued to rebound Kelvin Xie, Angus Chan 25 Aug Baidu (BIDU.US) - Disposal of Baidu Takeaway to reduce revenue by ~5% Internet Innovation Center: Gu Xinyu (Connie), CPA, Sun Mengqi (Brandy), Zhou Zhe (Gigi), Shan Ying Source: Company data, BOCOM International

11 Hang Seng Index Constituents Company BBG Share Mkt 5 d Ytd week PE Yield P/B name code price cap chg chg Hi Lo 2016A 2017E 2018E 2017E 2017E (HK$) (HK$ m) (%) (%) (HK$) (HK$) (X) (X) (X) (%) (X) CKH HOLDINGS 1 HK , HANG LUNG PPT 101 HK , CKI HOLDINGS 1038 HK , HENGAN INTL 1044 HK , CHINA SHENHUA-H 1088 HK , HANG SENG BANK 11 HK , CHINA RES LAND 1109 HK , CHEUNG KONG PROP 1113 HK , HENDERSON LAND D 12 HK , AIA 1299 HK , KUNLUN ENERGY 135 HK , ICBC-H 1398 HK ,458, CHINA MERCHANTS 144 HK , WANT WANT CHINA 151 HK , SHK PPT 16 HK , NEW WORLD DEV 17 HK , GEELY AUTOMOBILE 175 HK , SWIRE PACIFIC-A 19 HK , SANDS CHINA D 1928 HK , CLP HOLDINGS 2 HK , AAC TECHNOLOGIES 2018 HK , BANK EAST ASIA 23 HK , PING AN 2318 HK ,201, MENGNIU DAIRY 2319 HK , N/A BOC HONG KONG HO 2388 HK , CHINA LIFE-H 2628 HK , CITIC 267 HK , GALAXY ENTERTAIN 27 HK , CATHAY PAC AIR 293 HK , N/A N/A HONG KG CHINA GS 3 HK , BANKCOMM-H 3328 HK , SINOPEC CORP-H 386 HK , HKEX 388 HK , BANK OF CHINA-H 3988 HK ,422, WHARF HLDG 4 HK , HSBC HOLDINGS PL 5 HK ,504, POWER ASSETS 6 HK , MTR CORP 66 HK , CHINA OVERSEAS 688 HK , TENCENT 700 HK ,037, CHINA UNICOM 762 HK , LINK REIT 823 HK , SINO LAND 83 HK , CHINA RES POWER 836 HK , PETROCHINA-H 857 HK ,664, CNOOC 883 HK , CCB-H 939 HK ,759, CHINA MOBILE 941 HK ,803, LENOVO GROUP 992 HK , HANG SENG INDEX 27,765 17,633, ,072 21, Source: Bloomberg

12 China Ent Index Constituents Company BBG Share Mkt 5 d Ytd week PE Yield P/B name code price cap chg chg Hi Lo 2016A 2017E 2018E 2017E 2017E (HK$) (HK$ m) (%) (%) (HK$) (HK$) (X) (X) (X) (%) (X) CHINA SHENHUA-H 1088 HK , SINOPHARM-H 1099 HK , CHINA RAIL CN-H 1186 HK , BYD CO D-H 1211 HK , ABC-H 1288 HK ,473, NEW CHINA LIFE-H 1336 HK , PICC GROUP-H 1339 HK , CHINA CINDA-H 1359 HK , ICBC-H 1398 HK ,458, POSTAL SAVINGS-H 1658 HK , CRRC CORP D -H 1766 HK , GF SECURITIES-H 1776 HK , CHINA COM CONS-H 1800 HK , CGN POWER-H 1816 HK , MINSHENG BANK-H 1988 HK , CHINA VANKE-H 2202 HK , PING AN 2318 HK ,201, PICC P&C-H 2328 HK , GREAT WALL MOT-H 2333 HK , CHINA PACIFIC-H 2601 HK , CHINA LIFE-H 2628 HK , BANKCOMM-H 3328 HK , SINOPEC CORP-H 386 HK , ZHUZHOU CRRC T-H 3898 HK , CHINA RAIL GR-H 390 HK , CM BANK-H 3968 HK , BANK OF CHINA-H 3988 HK ,422, DONGFENG MOTOR-H 489 HK , CITIC SEC-H 6030 HK , HAITONG SECURI-H 6837 HK , CGS-H 6881 HK , HUATAI SECURIT-H 6886 HK , CHINA TELECOM-H 728 HK , AIR CHINA D-H 753 HK , PETROCHINA-H 857 HK ,664, HUANENG POWER-H 902 HK , CONCH CEMENT-H 914 HK , CHINA LONGYUAN-H 916 HK , CCB-H 939 HK ,759, CITIC BANK-H 998 HK , HANG SENG CHINA ENT INDX 11,296 5,167, , , Source: Bloomberg

13 BOCOM International Unit 1701, 17/F, Low Block, Grand Millennium Plaza, 181 Queen s Road Central, Hong Kong Main: Fax: Rating System Company Rating Buy: Expect more than 20% upside in 12 months Buy: Expect more than 20% upside but longer than 12 months : Expect low volatility Sell: Expect more than 20% downside in 12 months Sector Rating Outperform ( OP ): Expect more than 10% upside in 12 months Market perform ( MP ): Expect low volatility Underperform ( UP ): Expect more than 10% downside in 12 months Research Team Head of Deputy Head of Hao HONG, CFA (852) hao.hong Geoffrey CHENG, CFA (852) geoffrey.cheng Macro-Strategy Internet Hao HONG, CFA (852) hao.hong Yuan MA, PhD (86) yuan.ma Karen TAN (852) karen.tan Connie GU, CPA (86) connie.gu Grace HUA, CFA (852) Grace.hua Mengqi SUN (86) mengqi.sun Zhe ZHOU (86) zhe.zhou Shan Ying (86) ying.shan Banks/ Non-Bank Financials Property Shanshan LI, CFA (86) lishanshan Alfred LAU, CFA, FRM (852) alfred.lau Li WAN, CFA, FRM (86) wanli Philip TSE, CFA, FRM (852) philip.tse Hannah HAN (852) hannah.han Carmen WONG (852) carmen.wong Jennifer ZHANG (852) yufan.zhang Consumer Renewable Energy Summer WANG, CFA (852) summer.wang Louis SUN (86) louis.sun Environmental Services Technology Wallace CHENG (852) wallace.cheng Chris YIM (852) christopher.yim Gaming & Leisure Transportation & Industrials Alfred LAU, CFA, FRM (852) alfred.lau Geoffrey CHENG, CFA (852) geoffrey.cheng Fay ZHOU (852) fay.zhou Healthcare Automobile & Defense David LI (852) david.li Angus CHAN (86) angus.chan

14 Analyst Certification The authors of this report, hereby declare that: (i) all of the views expressed in this report accurately reflect their personal views about any and all of the subject securities or issuers; and (ii) no part of any of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report; (iii) no insider information/ non-public price-sensitive information in relation to the subject securities or issuers which may influence the recommendations were being received by the authors. The authors of this report further confirm that (i) neither they nor their respective associates (as defined in the Code of Conduct issued by the Hong Kong Securities and Futures Commission) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to the date of issue of the report; (ii)) neither they nor their respective associates serve as an officer of any of the Hong Kong listed companies covered in this report; and (iii) neither they nor their respective associates have any financial interests in the stock(s) covered in this report except for one coverage analyst who is holding shares of Shimao Property Holdings Limited. Disclosure of relevant business relationships BOCOM International Securities Limited, and/or its associated companies, has investment banking relationship with Bank of Communications, Guolian Securities Co. Ltd., Bank of Zhengzhou Co. Ltd., Human Health Holdings Limited, COFCO Meat Holdings Limited, Hebei Yichen Industrial Group Corporation Limited, China Aircraft Leasing Group Holdings Limited, Orient Securities Company Limited, Wuxi Construction and Development Investment Co., China Development Bank Financial Leasing Co., Ltd, Phoenix Healthcare Group,Co. Ltd, Everbright Securities Company Limited, China First Capital Group Limited, Jiayuan International Group Limited, Luzhou Xinglu Water (Group) Co., Ltd., Postal Savings Bank of China Co., Ltd., China Merchants Securities Co., Limited, Shandong International Trust Co., Ltd, Guangdong Kanghua Healthcare Co., Ltd, CSC Financial Co., Ltd, BOCOM International Holdings Company Limited, HPC Holdings Limited, Guotai Junan Securities Co., Ltd and Zhongyuan Bank Co., Ltd within the preceding 12 months. BOCOM International Global Investment Limited currently holds more than 1% of the equity securities of Orient Securities Company Limited. 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