Regional Morning Notes
Monday, June 30, 2008
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2H08: Outlook remains difficult but China stocks have fallen to attractive
levels. Expect trading range of 12,000–15,500 for HSCEI. Go for
infrastructure and consumer stocks.
China Railway Group (BUY/HK$5.95/Target: HK$7.30)
Initiate coverage with a BUY and HK$7.30 target price.
Ports Design (BUY/ HK$21.90/Target: HK$25.70) Page 7
Established JV to tap into upscale women fashion wear market.
Sino-Ocean Land (BUY/HK$4.58/Target: HK$6.70)
Cut earnings forecast and target price due to rising market risk in Beijing,
but should have been factored in share price which have fallen 70% and at
a 55% discount to NAV.
CITIC Resources (BUY/HK$3.39/Target: HK$7.51-Under Review)
We estimate the value of CRH’s oil assets at HK$4.00-7.90/share, higher
than its current share price.
Ping An Insurance (BUY/HK$58.15/Target: HK$87.10)
Fortis cancels US$2b worth of interim dividend. Limited impact on Ping An.
Sensitivity analysis on each developer’s NAV for changes in the value of
different property segments.
The index enters a bearish trend by breaking the descending triangle
Banks could be adjusting lending rates for auto loans by an average of 1%
effective Aug 08. This could be an indication of an overnight policy rate hike.
DBS Group Holdings(DBS SP)
Benefitting from resilient
Benefitting from recovery of SIBOR.
DBS is the prime beneficiary of an
uptrend in SIBOR as interest rates in
regional countries edge higher. DBS
has the lowest loan/deposit ratio o