Industry Refer to important disclosures at the end of this report Page 1 DBS Group Research. Equity 22 ruary 216 China Auto Sector Analyst: Rachel MIU +852 2863 8843 rachel_miu@hk.dbsvickers.com uary PV sales boosted by strong demand for SUVs Vehicle purchase tax cut continues to boost PV sales SUV demand remains robust; domestic brands top the sales list BUY automotive parts companies: Minth (425 HK) and Nexteer (1316 HK); selective on automakers: GAC (2238 HK) Great Wall Motor (2333 HK), SAIC-GM-Wuling (under SAIC 614 CH) and Guangzhou Automobile (2238 HK). In the past three years (213-215), SUV sales have grown a rapid 4-5 per year. The strong demand has resulted in many automakers launching new SUV models at a faster pace to ride on the market uptrend. As such, market competition is also rising. The SUV segment s share of the total PV market has further increased to 35, up from 29 in 215. uary automotive market stays firm. Total vehicle sales grew by 7.8 to approximately 2.5m units last month. The passenger vehicle (PV) market posted 9.4 expansion while the commercial (CV) market fell 3.4 y-o-y. The strong PV sales were largely attributable to the vehicle purchase tax cut, which has benefited the unit sales of domestic brands. The Chinese New Year effect also had some impact on the PV volume growth. The Chinese auto brand volume sales increased by 16.6 and accounted for 45.5 of the total PV market, a 3ppts improvement from 15. Since the implementation of the stimulus policy to boost car demand, the domestic brand market share has been rising. Demand for SUVs is still growing strongly. The key PV volume drivers are SUVs (+61 y-o-y) and MPVs (+15.9 y-o-y). The top three SUV models are dominated by the Chinese brands CV market outlook is weak. Sales of commercial trucks continued to be affected by the weak economy. Sales of CVs fell by 3.4 y-o-y last month. We expect the CV market to remain weak for the rest of the year. BUY automotive parts companies; selective on automakers. Automotive parts manufacturers Minth (425 HK; TP HK$15.8) and Nexteer (1316 HK; TP HK9.6) are our top picks because these players have a more diversified market base, hence lowering their earnings risk profile. For automakers, Guangzhou Auto (TP HK$7.5) domestic brand Trumpchi is moving up the ranking in SUV sales as the company widens the range of product offerings. Besides, the company s Japanese JVs continued to post encouraging sales last month, with Guangqi Honda and GAC Toyota recording volume growth of 25 and 36 respectively. ed- JS / sa- CW
Monthly vehicle sales ' units -15-15 -16 YoY MoM growth growth () () 1M15 1M16 YTD YoY growth () As a of total PV (1M16) China total vehicle sales 2,32 2,786 2,51 7.8 (1.2) 2,32 2,51 7.8 Passenger Vehicles 2,38 2,442 2,229 9.4 (8.7) 2,38 2,229 9.4 1 Sedan 1,222 1,281 1,111 (9.1) (13.3) 1,222 1,111 (9.1) 5 MPV 226 273 261 15.9 (4.1) 226 261 15.9 12 SUV 487 794 785 61.1 (1.1) 487 785 61.1 35 Cross 13 95 71 (31.) (24.7) 13 71 (31.) 3 Commercial Vehicles 282 343 272 (3.4) (2.8) 282 272 (3.4) Source: CEIC Page 2
Monthly total vehicle sales in China Monthly total vehicle sales growth in China m units 3. 2.5 2. 1.5 1..5. 211 212 213 214 215 216 Monthly PV sales in China 14 12 1 8 6 4 2 (2) (4) (6) /6 /6 /7 /7 /8 /8 /9 /9 /1 /1 /11 /11 /12 /12 /13 /13 /14 /14 /15 /15 /16 Monthly PV sales growth in China m units 3. 2.5 2. 1.5 1..5. 211 212 213 214 215 216 Monthly CV sales in China 14 12 1 8 6 4 2 (2) (4) (6) /6 /6 /7 /7 /8 /8 /9 /9 /1 /1 /11 /11 /12 /12 /13 /13 /14 /14 /15 /15 /16 Monthly CV sales growth in China m units.6 2.5.4.3.2.1. 211 212 213 214 215 216 15 1 5 (5) /6 /6 /7 /7 /8 /8 /9 /9 /1 /1 /11 /11 /12 /12 /13 /13 /14 /14 /15 /15 /16 Source: CEIC Page 3
Dongfeng - total monthly sales Dongfeng - total monthly sales growth unit 4, 35, 3, 25, 2, 15, 1, 5, 213 214 215 216 14 12 1 8 6 4 2-2 -4-6 -9-9 -9-1 -1-1 -11-11 -11-12 -12-12 -13-13 -13-14 -14-14 -15-15 -15-16 Y-o-Y growth (LHS) 1 8 6 4 2-2 -4-6 M-o-M growth (RHS) GAC total monthly sales GAC total monthly sales growth unit 2, 18, 16, 14, 12, 1, 8, 6, 4, 2, 2 15 1 5-5 -1-1 -1-11 -11-12 -12-13 -13-14 -14-15 -15-16 213 214 215 216 YOY growth Brilliance China total monthly sales (BMW) Brilliance China total monthly sales growth (BMW) unit 35, 2 3, 25, 2, 15 1 15, 5 1, 5, (5) -1-1 -11-11 -12-12 -13-13 -14-14 -15-15 -16 213 214 215 216 Source: Companies Page 4
Geely total monthly sales Geely total monthly sales growth unit 7, 6, 5, 2 15 1 4, 5 3, 2, 1, -5-1 -9-9 -1-1 -11-11 -12-12 -13-13 -14-14 -15-15 -16 213 214 215 216 Great Wall Motor total monthly sales Great Wall Motor total monthly sales growth unit 12, 1, 8, 6, 4, 2, 213 214 215 216 1 8 6 4 2-2 -4-6 -1-1 -1-11 -11-11 -12-12 -12-13 -13-13 -14-14 -14-15 -15-15 Source: Companies Automobile price index - Domestic made Vehicle inventory alert index 24 = 1 11 8 1 9 8 7 6 5-4 -4-5 -5-6 -6-7 -7-8 -8-9 -9-1 -1-11 -11-12 -12-13 -13-14 -14-15 -15 7 6 5 4 3 2 1 PV Small High class Mini Medium class Luxury -13-13 -13-13 -14-14 -14-14 -15-15 -15-15 Source: CEIC Source: CADA, DBS Vickers Page 5
NEV sales PV sales by country mix (-15) units 35, 3, CAGR: 196 Japanese 17 German 15 25, 2, 15, 1, 5, 212 213 214 215 Pure electric Plug in hybrid Self-owned 43 Other.4 French 3 American 13 Korean 9 Audi monthly sales Audi monthly sales growth ' units 7 1 6 8 5 4 3 2 1 6 4 2 (2) (4) /1 /1 /11 /11 /12 /12 /13 /13 /14 /14 /15 /15 /16 213 214 215 216 BMW Group monthly sales BMW Group monthly sales growth ' units 5. 45. 4. 35. 3. 25. 2. 15. 1. 5.. 1 8 6 4 2 (2) (4) /1 /1 /11 /11 /12 /12 /13 /13 /14 /14 /15 /15 /16 Source: CAAM, Companies 213 214 215 216 Page 6
Mercedes Benz monthly sales Mercedes Benz monthly sales growth ' units 45 4 35 3 25 2 15 1 5 1 8 6 4 2 (2) (4) (6) /1 /1 /11 /11 /12 /12 /13 /13 /14 /14 /15 /15 /16 Porsche monthly sales 213 214 215 216 Porsche monthly sales growth ' units 7. 6. 5. 4. 3. 2. 1.. 12 1 8 6 4 2 (2) (4) (6) /11 /11 /12 /12 /12 /12 /13 /13 /13 /13 /14 /14 /14 /14 /15 /15 /15 /15 212 213 214 215 Jaguar Land Rover monthly sales Jaguar Land Rover monthly sales growth ' units 14. 25 12. 2 1. 15 8. 6. 4. 2.. 1 5 (5) (1) /1 /1 /1 /11 /11 /11 /12 /12 /12 /13 /13 /13 /14 /14 /14 /15 /15 /15 Source: Companies 213 214 215 216 Page 7
Peers valuation - Automakers Mkt PE PE Yield Yield P/Bk P/Bk EV /EBITDA ROE ROE Currency Price Cap Fiscal 16F 17F 16F 17F 16F 17F 16F 17F 16F 17F Company Name Code Local$ US$m Yr x x x x x x Hong Kong GZ Auto 'H'* 2238 HK HKD 7.26 15,82 8.7 7.8 3.5 3.8 1..9 5.8 5.2 11.6 11.8 Sinotruk (Hongkong) 388 HK HKD 2.78 986 1.7 8.7 2.9 3.8.3.3 2.5 2.2 2.9 3.4 Dongfeng Motor 'H'* 489 HK HKD 9.92 1,984 5.1 4.8 2.4 2.4.7.6 3. 2.5 15.3 14.3 Brilliance China* 1114 HK HKD 6.73 4,368 6.7 5.9 1.4 1.6 1.1 1. 6.6 5.7 18.6 17.7 Great Wall Motor 'H'* 2333 HK HKD 5.68 1,172 5.1 4.6 7.5 8.3 1..8 3.7 3.4 22. 2.9 BYD 'H' 1211 HK HKD 37.3 11,869 3.6 26.6.2.1 2.3 2.1 1.9 9.5 7.3 8.1 Qingling Motors 'H' 1122 HK HKD 2.39 762 9.5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 6.1 6.2 Geely Automobile* 175 HK HKD 3.12 3,528 8. 7.1 1.9 2.1 1..9 4.1 3.5 13.8 13.9 BAIC Motor 'H' 1958 HK HKD 5.94 5,798 6.9 5.8 5.8 6.6.9.8 4.2 3.4 14. 15.1 Average 7.6~ 6.4~ 3.2 3.6 1..9 5.1 4.4 12.4 12.4 China SAIC Motor 'A' 614 CH CNY 18.63 31,524 6.4 6. 7.5 8.2 1.1 1. 4.6 5.6 16.8 16.4 Faw Car 'A' 8 CH CNY 12.99 3,245 31.8 29.9.3.1 2.2 2.1 14.3 14. 5.7 5.6 CQ Changan 'A' 625 CH CNY 14.9 1,663 5.9 5.4 3.5 4.1 1.6 1.3 5.5 5.1 29.5 26.6 CQ Changan 'B' 2625 CH HKD 15.28 9,157 5. 4.7 4.3 6. 1.4 1.2 6. 4.8 3.9 29.1 Beiqi Foton Motor 'A' 6166 CH CNY 4.92 2,518 16.1 35.1 1.8.8.9.9 11.4 18. 1.8 2.4 Tianjin Faw Xiali 'A' 927 CH CNY 5.82 1,425 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Dong Feng Auto 'A' 66 CH CNY 6.22 1,99 2.7 n.a. 1.4 n.a. 1.8 n.a. n.a. n.a. n.a. n.a. Anhui Jianghuai 'A' 6418 CH CNY 1.38 2,331 1.5 8.6 2.9 3.1 1.5 1.3 5.4 5. 15. 15.3 Yutong Bus 'A' 666 CH CNY 19.38 6,585 11.2 1.2 4.4 5.1 2.8 2.6 9. 8. 27.8 26.4 Haima Automobile 'A' 572 CH CNY 4.63 1,169 21. n.a. 1.5 n.a. 1. n.a. n.a. n.a. n.a. n.a. Great Wall Motor 'A'* 61633 CH CNY 8.55 1,172 9.1 8.3 4.2 4.6 1.7 1.5 5.8 5.5 22. 2.9 GZ Auto. 'A' 61238 CH CNY 21.23 15,82 28.2 22.3 1. 1.2 3.2 2.9 84. 72.6 12.4 13.3 BYD 'A' 2594 CH CNY 54.29 2,63 41.1 29.1.2.1 4. 3.6 15.1 12.5 9.6 12. Average 17.~ 16. 2.8 3.3 1.9 1.8 16.1 15.1 17.1 16.8 US Ford Motor F US USD 12.26 47,798 6.2 5.9 5.8 5.5 1.4 1.1 5.2 4.9 27. 21.6 General Motors GM US USD 29.3 44,837 5.3 5. 5.1 5.3 1..8 2.7 2.6 21.2 18.9 Average 5.8 5.5 5.4 5.4 1.2 1. 3.9 3.8 24.1 2.3 Korea Kia Motors 27 KS KRW 49, 16,163 6.7 6.2 2.6 3..7.7 2.9 2.7 11.6 11.3 Hyundai Motor 538 KS KRW 149, 34,613 5.8 5.5 3.1 3.4.6.5 5.5 5.4 1.3 1. Average 6.2 5.8 2.8 3.2.7.6 4.2 4. 1.9 1.7 Japan Toyota Motor# 723 J P J PY 5999 176,818 7.4 6.9 4. 4.4.9.9 4.8 4.5 13.3 12.9 Honda Motor# 7267 J P J PY 2951 47,21 8.3 7.4 3.6 4.1.7.6 4.7 4.3 8.3 8.9 Nissan Motor# 721 J P J PY 965.5 38,541 6.4 5.9 5. 5.5.7.7 4.3 4. 11.8 11.5 Suzuki Motor# 7269 J P J PY 2868.5 14,211 1.9 9.9 1.4 1.5 1..9 4.2 3.9 1. 1. Mitsubishi# 836 J P J PY 486.2 6,829 5.9 5.7 4.4 4.8.4.4 n.a. n.a. 7.3 7.2 Average 7.8 7.2 3.7 4.1.7.7 4.5 4.2 1.1 1.1 Europe BMW BMW GR EUR 74.556 54,366 7.7 7.4 4.5 4.8 1.1 1. 3.9 3.7 14.6 13.9 V olkswagen (Swx) V OW GR CHF 121.7 61,438 14.3 6.2 3.1 4.5.7.6 3. 2.9 6.2 9.5 Saab 'B' SAABB SS SEK 27.5 3,486 19.2 16.1 2.2 2.5 2.1 2. 9.3 8.5 11. 12.6 Peugeot UG FP EUR 13.365 12,4 7.6 6.8 1. 2..9.8 1.7 1.6 12.6 12.4 Porsche Aml.Hldg.Pref. PAH3 GR EUR 4.398 13,742 4.4 3.8 3.9 4.9.4.4 n.a. n.a. 4.8 7.9 Daimler DAI GR EUR 63.76 74,954 7.3 7.1 5.4 5.7 1.2 1.1 3.6 3.5 17.4 16.5 Fiat Chrysler Auto FCA IM EUR 5.79 8,264 4.6 3.6.4 1..6.5 1.8 1.7 13.2 14.3 Average 9.3 7.3 2.9 3.6 1..9 3.9 3.7 11.4 12.4 # FY16: FY17; FY17: FY18 ~ Exclude outliners Source: Thomson Reuters, *DBS Vickers Page 8
Peers valuation Auto dealers Mkt PE PE Yield Yield P/Bk P/Bk EV /EBITDA ROE ROE Currency Price Cap Fiscal 16F 17F 16F 17F 16F 17F 16F 17F 16F 17F Company Name Code Local$ US$m Yr x x x x x x Hong Kong Dah Chong Hong* 1828 HK HKD 3.27 77 7.2 6.3 4.2 4.8.6.5 7. 6.3 8.3 8.9 ZhongSheng* 881 HK HKD 3.78 1,43 7.5 5.6 2.7 3.6.5.5 7.3 6.3 7.5 9.3 China ZhengTong* 1728 HK HKD 2.91 827 5.4 4.5 3.7 4.4.5.5 5.4 4.7 1.5 11.3 Baoxin Auto Group 1293 HK HKD 4.53 1,489 1.3 8.9 1.4 1.7 1.5 1.3 6.1 5.5 14.9 15. China Yongda 3669 HK HKD 4.24 86 6.5 4.5 3.5 6.5 1..8 4.3 3.4 16.7 2.6 China Meidong Auto 1268 HK HKD.73 12 3.4 2.7 8.5 1.5.7.5 n.a. n.a. 27. 27.5 China Harmony Auto 3836 HK HKD 4.79 97 7.7 6. 1.9 2.4 1..7 5.8 5.2 14. 11.8 Sparkle Roll Group 97 HK HKD.48 184 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Auto Italia Holdings 72 HK HKD.215 144 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. New Focus Auto 36 HK HKD.35 26 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. China Rundong Auto 1365 HK HKD 3 365 9. 5.1.. 1.1.9 5.1 3.8 18.5 2.3 Sunfonda Group 1771 HK HKD 2.5 193 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Average 7.1 5.5 3.2 4.2.9.7 5.9 5. 14.7 15.6 Other Asia J ardine Cyc.& Carr. J CNC SP SGD 39.22 11,49 14.5 12.4 2.8 3.1 1.9 1.8 5.7 5. 13.8 15.2 Tan Chong Intl TCM MK HKD 2.41 624 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Zhejiang Material 674 CH CNY 13.38 4,535 41.8 n.a..7 n.a. 4.4 n.a. n.a. n.a. n.a. n.a. Power Diversity Auto 61258 CH CNY 2.98 2,964 7.5 n.a. 4. n.a..7 n.a. n.a. n.a. n.a. n.a. Wuhu Yaxia Auto 267 CH CNY 1.76 589 134.5 n.a..2 n.a. 3.6 n.a. n.a. n.a. n.a. n.a. Sinomach Auto 6335 CH CNY 13.92 1,34 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. China Grand Auto 6297 CH CNY 12.78 1,788 25.1 21.1.. 3.2 2.8 n.a. n.a. 13. 13.6 Wuxi Coml.Mansion 6327 CH CNY 7.85 629 18.7 n.a. 1.7 n.a. 2.3 n.a. n.a. n.a. n.a. n.a. Shanghai Shenhua 6653 CH CNY 3.79 1,16 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Fujian Zhangzhou 753 CH CNY 4.61 626 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Yulon Motor 221 TT TWD 29.5 1,394 12.9 15.1 3.4 3.2.6.6 6.6 6.3 4.8 4.1 Hotai Motor 227 TT TWD 341.5 5,63 17.5 16.4 3.8 4.2 4.4 3.8 12.3 11.5 24. 21.8 Average 34.1 16.2 2.1 2.6 2.6 2.2 8.2 7.6 13.9 13.7 US Autonation AN US USD 49.95 5,356 11.7 1.7.. 2.1 1.8 7.1 6.6 18.8 17.3 Group 1 Auto GPI US USD 52.1 1,232 7. 6.4 1.5 1.4 1..9 6.5 6.1 15.1 13.9 Asbury Auto ABG US USD 51.87 1,317 8.8 7.9.. 2.9 2.1 6.9 6.5 42.6 39.7 Carmax KMX US USD 46.64 9,129 13.7 12.4.. 2.7 2.4 11.2 1.7 2.8 14.4 Lentuo Intl LASLY US USD.3.1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Average 1.3 9.4.4.4 2.2 1.8 7.9 7.5 24.3 21.3 Source: Thomson Reuters, *DBS Vickers Page 9
Peers valuation Auto parts EV / Earnings Earnings Mkt PE PE P/Bk EBITDA ROE Growth CAGR Currency Price Cap 16F 17F 16F 16F 16F 16F 17F FY15-17 Company Name Code Local$ US$m x x x x Hong Kong listed Changan Minsheng 1292 HK HKD 7.15 149 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. China Metal Intl.Hdg. 319 HK HKD 2.35 34 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. China V eh.compns.tech. 1269 HK HKD 3.5 249 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Fortunet E-Commerce Gp. 139 HK HKD.9 177 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Fuyao Glass Industry Gp. Co.'H' 366 HK HKD 16.72 5,249 11.6 1.3 2. 8.1 17.6 18.2 13.5 15.8 Huazhong In-V ehicle Hdg. 683 HK HKD 1.2 21 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Launch Tech 'H' 2488 HK HKD 7.33 31 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Minth Group* 425 HK HKD 14.56 2,68 9.2 8. 1.3 6.4 15.2 15.9 14.7 15.3 Nexteer Automotive Group* 1316 HK HKD 7.43 2,386 9.2 7.8 2.2 4.8 26.7 23.2 18.8 21. Perennial Intl. 725 HK HKD 1.92 49 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Shougang Ccrd.Cen.Hdg. 13 HK HKD.181 45 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Weichai Power 'H' 2338 HK HKD 7.27 3,736 11.7 9.4.7 3.7 5.8 (6.6) 24.1 (3.1) Wuling Motors Holdings 35 HK HKD.58 136 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Xinchen China Power Hdg.* 1148 HK HKD 1.31 216 4. 3.8.5.9 11.8 12.7 8.3 1.5 Xingda Intl.Holdings 1899 HK HKD 1.27 243 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Xinyi Glass Holdings 868 HK HKD 4.29 2,129 7.7 6.3 1.2 7.1 15.2 18.9 21.5 2.2 Average 8.9 7.6~ 1.3 5.2 15.4 17.8~ 16.8~ 8.8 China listed Anhui Quanchai Engine 6218 CH CNY 9.65 546 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Avic Aero-Engine Cntls. 738 CH CNY 34.9 6,136 162.3 145.4 8.1 77.5 5.4 42.5 11.1 25.8 Changchai 257 CH HKD 4.94 356 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Fangda Special Stl.Tech. 657 CH CNY 4.89 995 31.5 22.2 2.4 n.a. 8.4 37.3 41.2 39.3 Faway Auto Compns. 6742 CH CNY 23.78 772 7.5 n.a. 1.1 n.a. 12.7 21.9 n.a. n.a. Fengfan Stock 6482 CH CNY 34.44 2,836 61.2 48.2 7.5 n.a. 8.6 7.5 1.6 31.6 Fuyao Glss.Ind.Group 'A' 666 CH CNY 13.91 5,215 11.6 1.3 2.1 8.1 18.8 16.5 13.3 14.9 Guihang Auto Components 6523 CH CNY 16.82 745 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Harbin Dongan Auto Enn. 6178 CH CNY 8.11 575 17.1 18. 1.8 n.a. 9.8 14.7 (5.5) 39.1 Huayu Automotive Sys.'A' 6741 CH CNY 13.88 6,716 7. 6.3 1.2 3.2 18.8 13.7 9.4 11.5 J ialeng Songzhi Auto 2454 CH CNY 13.14 853 14.7 14. 1.8 n.a. 12.2 33.3 3.6 17.5 J iangnan Mould & Plastic 7 CH CNY 18.5 1,18 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. J iangsu Pac.Precn.Frgg. 'A' 3258 CH CNY 13.87 575 21.3 18.4 2.6 n.a. 12.8 n.a. 17.2 n.a. Kunming Yunnei Pwr. 93 CH CNY 6.93 85 15.1 13.9 1.4 n.a. 7.1 14.7 39. 26.3 Liaoning Sg Autv.Gp. 'A' 633 CH CNY 11.5 1,95 24.2 18.7 n.a. n.a. n.a. 541.3 29.2 187.8 Lingyun Industrial 'A' 648 CH CNY 12.31 852 25.1 22.6 2.3 8.4 8.4 1.2 11.2 1.7 Ningbo Huaxiang Elt. 248 CH CNY 17.4 1,415 15.5 14.1 1.9 n.a. 1.7 42.5 9.3 24.8 Shanghai Aerospace Auto 6151 CH CNY 1.8 1,934 26.3 19.8 2.8 n.a. 11.6 4.7 27.4 33.9 Shanghai Jiao Yun Group 6676 CH CNY 1.97 1,452 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Shenyang J inbei Autv. 669 CH CNY 3.64 61 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Sic.Chengfei Intg.Tech. 219 CH CNY 33.12 1,755 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Sichuan Haowu Erml.'A' 757 CH CNY 8.27 573 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Steyr Motors 'A' 76 CH CNY 13.77 1,667 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Wanxiang Qiangchao 'A' 559 CH CNY 15.2 5,352 34.9 33.8 6.7 n.a. 19.3 17.2 2.8 9.8 Weifu High Tech.Gp. 2581 CH HKD 14.3 1,854 5.7 5.2.9 9.3 15.2 64. 9.2 33.8 Xuchang Ynd.Drive Shaft 246 CH CNY 8.12 699 38.7 35.3 2. n.a. 5. 2.6 8.9 5.7 Zhejiang Wanliyang Tnsm. 2434 CH CNY 23.5 1,84 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Zongshen Pwr. Machinery 1696 CH CNY 1.5 1,766 21.8 16.5 2.9 n.a. 12.2 39.9 32. 35.9 China Autv.Sy s. CAAS US USD 4.25 137 4.4 n.a. n.a. n.a. n.a. 15.5 n.a. n.a. China Yuchai Intl. CYD US USD 9.92 39 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Sorl Auto Parts SORL US USD 1.61 31 2.3 n.a. n.a. n.a. n.a. 21. n.a. n.a. Average 25.2~ 19.5~ 2.9 21.3 11.7 6.2~ 15.8 34. ~ Exclude outliners Source: Thomson Reuters, *DBS Vickers Page 1
DBSV recommendations are based an Absolute Total Return* Rating system, defined as follows: STRONG BUY (>2 total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15 total return over the next 12 months for small caps, >1 for large caps) HOLD (-1 to +15 total return over the next 12 months for small caps, -1 to +1 for large caps) FULLY VALUED (negative total return i.e. > -1 over the next 12 months) SELL (negative total return of > -2 over the next 3 months, with identifiable catalysts within this time frame) Share price appreciation + dividends GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Vickers (Hong Kong) Limited ( DBSVHK ) This report is solely intended for the clients of DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd and DBSVHK, its respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBSVHK. 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