Morning Meeting Summary

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1 25 Mar 2013,Monday 晨会报告 Research Highlights 1 CHINA TELECOM-H(00728.HK) [Jeff Hao]ChinaTelecom(CT) reported in-line 2012 results with revenue of RMB283bn, up 15.5% YoY;EBITDA of RMB96.3bn, up 1.2% YoY and net profit of RMB149bn, down 9.5% YoY. CT s 3G business achieved solid growth, we expect ARPU to further improve and the growth momentum to continue in G remains major uncertainty for CT. However, given CT s balanced 4G investment strategy, we believe CT will not suffer the burden from sudden CAPEX increase is the year of harvest for 3G business, we expect an earnings rebound and CT to enter into a robust growth period. 2 PetroChina (00857.HK) [Michael Yuk]PetroChina announced that due to the losses from its refining & chemical division and natural gas division, combined with earning declines in other segments, total net income during 2012 declined 13.3%yoy to RMB115.3bn. Maintain Neutral. E&P business declines Despite recording a 4.5%yoy increase in oil & gas production and stable crude oil prices, PetroChina s E&P division recorded a 2.1%yoy decline in operating profit to RMB214.9bn. The fall in operating profits was mainly due to ever-increasing production costs. HK Indices Last price chg % chg HSI Finance Properties Utilities 22, , , , Commerce&Industr 12, HSCEI 10, HSCCI 4, HKSPGEM World Indices Last price chg % chg FTSE 100 DAX 30 CAC 40 DJIA S&P500 Nasdaq Composite Nikkei 225 Asia-Pacific Indices 6, , , , , , , Last price chg % chg KOSPI 1, TWSE 7, STI 2, India BSE 30 14, S&P/ASX 200 3, HSI One Year 3 GEELY AUTOMOBILE(00175.HK) [Colleen Li]Geely Automobile (the Company) announced FY2012 annual result. The Company recorded total revenue of Rmb24.63bil yuan, up 17%yoy; An attributable income of RMB2.04bil yuan, up 32%yoy; EPS of 0.26yuan (FY yuan). The Board proposed a dividend of HK$0.039 per share. The Company sold total of 483,000 units of car, increased by 15 %yoy, and hit the annual target of 460,000 units. The annual sales target of FY2013 is 560,000units, implied a growth of 16%yoy. Macro Monitor 1 Euro, Asian shares rise on draft Cyprus deal The euro and Asian shares rose on Monday after EU sources said Cyprus's president and the European Union have agreed the outlines of a rescue deal to avert financial meltdown on the Mediterranean island. The EU sources said the outlines include the creation of a "good bank" and a "bad bank" and the shutting down of Cyprus's second largest lender, and were agreed by Cypriot President Nicos Anastasiades in negotiation with European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso. The plan will now be presented to euro zone finance ministers for discussion, the officials said. The euro rose to $ from around $1.2980, HSCEI One Year Source:Bloomberg China Merchants Securities (HK) Research of 8

2 moving away from a four-month low of $ hit on Tuesday. Spot gold fell 0.3 percent to $1, an ounce as the euro advanced. "The news was what markets were waiting for, some kind of an agreement. But uncertainties remain as it is still subject to further discussions," said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo. Saito said the euro also drew support from repatriations by Europeans ahead of the end of the first quarter, potentially positioning the common currency to hit $ [Reuters](CMSHK) Sector Updates Nil Global Commodity Brent Oil Gold LME Aluminum LME Copper BDI API Coal Exchange /Currency /Bond Market USD/RMB USD/HKD 1-YR RMB NDF EUR/USD 3-M Libor 3-M Shibor 10 YR US T-Note Yield Last price chg % chg , , , Last price chg % chg Company Comments 1 BYD Co. (01211.HK):FY2012 net income dropped by 37%yoy BYD recorded total revenue of Rmb14bil yuan, decreased by 11.2%yoy; gross profit of Rmb1.19bil yuan, decreased by 31.22%yoy; attributable profit of Rmb378mil yuan, decreased by 37%yoy; EPS of Rmb0.17yuan (FY2011, Rmb0.27yuan). The board proposed no dividend. [Company Announcement] Comments: The result is lower than market expectation due to poor I.T. sector performance and shrinking gross margin. (Colleen Li) Brent Oil One Year Gold Comdty One Year LME Alumnium Comdty One Year Source:Bloomberg 2 2 of 8

3 Economic Calendar LME Copper Comdty One Year Economic Data HK:Nil US:Nil 8000 Date Ticker Stock Name Earnings Results 2013/03/ HENDERSON LAND Final 2013/03/ REGAL INT'L Final 2013/03/ HENDERSON INV Final 2013/03/ WONG'S INT'L Final 2013/03/ SUMMIT ASCENT Final 2013/03/ CHI CHEUNG Final 2013/03/ GREAT CHINA Final 2013/03/ RAYMOND IND Final 2013/03/ EVERGREEN INT Final 2013/03/ SHUN TAK HOLD Final 2013/03/ Dragonite Int l Final 2013/03/ EARNEST INV Final 2013/03/ CHINA MINING Final 2013/03/ FORTUNE SUN Final 2013/03/ CENTURY C INT'L Final 2013/03/ PME Final 2013/03/ CHINNEY ALLI Final 2013/03/ SINO DRAGON Final 2013/03/ NORTH MINING Final 2013/03/ CHINA FIRE Final 2013/03/ TRISTATE HOLD Final 2013/03/ GOME Final 2013/03/ CHINAGRANDPHARM Final 2013/03/ SIS INT'L Final 2013/03/ SPEEDY GLOBAL Final 2013/03/ CHINA PACKAGING Final 2013/03/ GREENFIELD CHEM Final 2013/03/ SCMP GROUP Final 2013/03/ IMAGI INT'L Final 2013/03/ SHENZHEN INVEST Final 2013/03/ C FIN SERVICES Final 2013/03/ PALIBURG HOLD Final 2013/03/ UDL HOLDINGS Interim 2013/03/ CDAYENONFER Final 2013/03/ ASIA TELE-NET Final 6000 BDI One Year Mar-12 J ul-12 Nov-12 API Coal One Year Mar-12 Aug-12 Dec-12 Source:Bloomberg 3 3 of 8

4 2013/03/ FINTRONICS Final 2013/03/ COMTEC SOLAR Final 2013/03/ SINGAMAS CONT Final 2013/03/ SINGYES SOLAR Final 2013/03/ ETERNITY INV Final 2013/03/ JINGKELONG Final 2013/03/ FRANSHION PPT Final 2013/03/ KO YO GROUP Final 2013/03/ CENTRAL CHINA Final 2013/03/ GRAND CONCORD Final 2013/03/ KAZAKHMYS-S Final 2013/03/ MICROPORT Final 2013/03/ ZHONGSHENG HLDG Final 2013/03/ COFCO PACKAGING Final 2013/03/ CHINA LONGYUAN Final 2013/03/ EFORCE HOLDINGS Final 2013/03/ LIANHUA Final 2013/03/ SMIC Final 2013/03/ DATANG POWER Final 2013/03/ NT PHARMA Final 2013/03/ C.BANNER Final 2013/03/ YIZHENG CHEM Final 2013/03/ NET2GATHER Final 2013/03/ WEIGAO GROUP Final 2013/03/ SINO HAIJING Final 2013/03/ KINGWORLD Final 2013/03/ GOLIK HOLDINGS Final 2013/03/ MILAN STATION Final 2013/03/ FORNTON GROUP Final 2013/03/ SINO BIOPHARM Final 2013/03/ S.A.S. DRAGON Final 2013/03/ KAI YUAN HLDGS Final 2013/03/ YASHILI INT'L Final 2013/03/ PC PARTNER Final 2013/03/ XIWANG STEEL Final 2013/03/ SHEEN TAI Final 2013/03/ PICC GROUP Final 2013/03/ EMBRY HOLDINGS Final 2013/03/ ENTERPRISE DEV Final 2013/03/ KWG PROPERTY Final 2013/03/ PERCEPTIONDIGIT Final 4 4 of 8

5 2013/03/ SOUTHGOBI-S Final 2013/03/ BELLE INT'L Final 2013/03/ REGAL REIT Final 2013/03/ WUYI PHARMA Final 2013/03/ SINOMA Final 2013/03/ SUNAC Final 2013/03/ TA YANG GROUP Interim 2013/03/ CHINAGOLDINTL Final 2013/03/ FIRST CHEM Final 2013/03/ GOLDEN SHIELD Final 2013/03/ SHENZHOU INTL Final 2013/03/ PICC P&C Final 2013/03/ LI NING Final 2013/03/ AVICHINA Final 2013/03/ YORKEY OPTICAL Final 2013/03/ ADDCHANCE Final 2013/03/ AGILE PROPERTY Final 2013/03/ TECH PRO Final Date Ticker Stock Name Issue Price Nil 5 5 of 8

6 HSI Index Components Performance HSCEI Index Components Performance Last price Code Name Price Chg 1D Chg 1D Code Name Price (%) (%) 1 CHEUNG KONG TSINGTAO BREW-H CLP HLDGS LTD JIANGSU EXPRES-H HONG KG CHINA GS MAANSHAN IRON-H WHARF HLDG SINOPEC SHANG-H HSBC HLDGS PLC ANGANG STEEL-H POWER ASSETS HOL JIANGXI COPPER-H HANG SENG BK CHINA PETROLEU-H HENDERSON LAND D CHINA RAIL GR-H HUTCHISON WHAMPO DONGFENG MOTOR-H SUN HUNG KAI PRO CHINA COMM SER-H NEW WORLD DEV ZHEJIANG EXPRESS SWIRE PACIFIC-A BEIJING CAP AI-H BANK EAST ASIA CHINA TELECOM-H MTR CORP AIR CHINA LTD-H SINO LAND CO PETROCHINA CO-H HANG LUNG PROPER HUANENG POWER-H CHINA MERCHANT ANHUI CONCH-H CITIC PACIFIC CHINA CONST BA-H CHINA RES ENTERP DATANG INTL PO-H CATHAY PAC AIR CHINA CITIC BK-H ESPRIT HLDGS CHINA SHENHUA-H CHINA PETROLEU-H HARBIN ELECTRIC HONG KONG EXCHNG CHINA SHIPPING-H LI & FUNG LTD YANZHOU COAL-H YUE YUEN INDUS CHINA RAIL CN-H CHINA OVERSEAS IND & COMM BK-H TENCENT HOLDINGS CHINA COM CONS-H CHINA UNICOM HON CHINA COAL ENE-H PETROCHINA CO-H CHINA COSCO HO-H CNOOC LTD PING AN INSURA-H CHINA CONST BA-H PICC PROPERTY & CHINA MOBILE ALUMINUM CORP-H CHINA SHENHUA-H CHINA LIFE INS-H COSCO PAC LTD SHANGHAI ELECT-H IND & COMM BK-H GUANGZHOU R&F -H FOXCONN INTL HLD CHINA SHIPPING-H PING AN INSURA-H CHINA OILFIELD-H BOC HONG KONG HO ZIJIN MINING-H ALUMINUM CORP-H CHINA NATL BDG-H CHINA LIFE INS-H BANK OF COMMUN-H BANK OF COMMUN-H CHINA MERCH BK-H BANK OF CHINA-H BANK OF CHINA-H CHINA MOLYBDENUM of 8

7 A+H Company Performance Last price Name(H) Code (H) Price (H) Code (A) Price (A) Spread (%) SINOPEC YIZHEN-H TIANJIN CAP-H BEIREN PRINT-H NANJING PANDA-H NORTHEAST ELEC-H SHENJI GROUP-H CHONGQING IRON-H SHANDONG XINHU-H HISENSE KELON -H SINOPEC SHANG-H JINGWEI TEXTIL-H YANZHOU COAL-H GUANGZHOU SHIP-H BEIJING NORTH-H ALUMINUM CORP-H JIANGXI COPPER-H DATANG INTL PO-H GUANGZHOU PHAR-H HUADIAN POWER-H CHINA CITIC BK-H SHENZHEN EXPRE-H CHINA SHIPPING-H DONGFANG ELECT-H ANHUI EXPRESS-H MAANSHAN IRON-H CHINA SOUTHERN-H CHINA PETROLEU-H WEICHAI POWER-H ZTE CORP-H HUANENG POWER-H BANK OF CHINA-H AIR CHINA LTD-H BANK OF COMMUN-H CHINA LIFE INS-H LUOYANG GLASS-H CHINA MERCH BK-H IND & COMM BK-H GUANGSHEN RAIL-H ANGANG STEEL-H TSINGTAO BREW-H PING AN INSURA-H JIANGSU EXPRES-H ANHUI CONCH-H of 8

8 RATING DEFINITION & DISCLAIMER RATING OVERWEIGHT NEUTRAL UNDERWEIGHT DEFINITION Expected to outperform the market index over the next twelve months Expected to outperform or underperform the market index over the next twelve month Expected to underperform the market index over the next twelve months RATING BUY OUTPERFORM NEUTRAL UNDERPERFORM SELL DEFINITION Expected to outperform the market index by >20% over the next twelve months Expected to outperform the market index by 10-20% over the next twelve months Expected to outperform or underperform the market index by <10% over the next twelve month Expected to underperform the market index by 10-20% over the next twelve months Expected to underperform the market index by >20% over the next twelve months DISCLAIMER This document is prepared by China Merchant Securities (HK) Co., Limited ( CMS ). CMS is a licensed corporation to carry on Type 1 (dealing in securities), Type 2 (dealing in futures), Type 4 (advising on securities), Type 6 (advising on corporate finance) and Type 9 (asset management) regulated activities under Securities and Futures Ordinance (Chapter 571). This document is for information purpose only. Neither the information nor opinion expressed shall be construed, expressly or impliedly, as an advice, offer, invitation, advertisement, inducement, recommendation or representation of any kind or form whatsoever or any financial instrument in any jurisdiction where such advice, offer, invitation, advertisement or solicitation would be illegal. The information and opinions, and associated estimates and forecasts, contained herein have been obtained from or are based on sources believed to be reliable. CMS, its holding or affiliated companies, or any of its or their directors, officers or employees ( CMS Group ) do not represent and warrant that it is accurate, correct or complete and it should be relied upon. CMS Group will not accept any responsibility or liability whatsoever for any use of or reliance upon this document or any of the content thereof. The contents and information in this document will be subject to change without prior notice. Use of any information herein shall be at the sole discretion and risk of the user. Investors are advised to make their own investment decisions without relying on this publication. CMS Group may have a position, make markets or act as principal or engage in transactions in securities of companies referred to in this document and may also perform or seek to perform investment banking services for those companies. This document is for the use of intended recipients only and this document may not be reproduced, distributed or published in whole or in part for any purpose without prior consent of CMS. China Merchants Securities (HK) Co., Ltd 48/F, One Exchange Square, Central, Hong Kong Website: Tel: (852) Fax: (852) of 8