Yum Cha 飲茶...1 Yum Cha 飲茶 December 2, 2016 Source: Bloomberg INDICES Closing DoD% Hang...

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Yum Cha 飲茶 December 2, 2016

Source: Bloomberg

INDICES Closing DoD%

Hang Seng Index 22878.2 0.4

HSCEI 9892.3 0.6

Shanghai COMP 3273.3 0.7

Shenzhen COMP 2119.7 0.6

Gold 1171.8 (0.1)

BDIY 1196.0 (0.7)

Crude Oil, WTI(US$/BBL) 51.1 3.3

Crude Oil, BRENT(US$/BBL) 53.9 4.1

HIBOR, 3-M 0.7 0.9

SHIBOR, 3-M 3.1 0.7

RMB/USD 6.9 (0.1)

RESEARCH NOTES

DATA RELEASES DUE THIS WEEK

n.a

STRATEGY - As Shenzhen-Hong Kong Stock Connect (SZ-HK Stock Connect) will be launched officially on December 5, we reviewed the eligible stock list for north-bound trading and updated our recommended stock list, based on the latest recom-mendations from our A-share research team: North Huajin Chemical Industries (000059.CH), Tianqi Lithium Industries (002466.CH), Aier Eye Hospital (300015.CH), Shenzhen Inovance Technology Co Ltd (300124.CH), Hualan Biological Engineering (002007.CH), Zhejiang Semir Garment (002563.CH), Chaozhou Three-Circle Group (300408.CH), AVIC Electromechanical Systems (002013.CH), Global Top E-Commerce (002640.CH), Shenzhen Zhongjin Lingnan Nonfemet (000060.CH), Fu-jian Sunner Development (002299.CH), Yuan Longping High-tech Agriculture (000998.CH), Guangdong Haid Group (002311.CH), Zibo Qixiang Tengda Chemical (002408.CH) and Org Packaging (002701.CH). MACAU GAMING - Macau’s Gross Gaming Revenue (GGR) in November was MOP18.7bn, up 14.4%YoY, which is the highest number since YoY growth turned positive in August. This recovery, which is driven by the new casino openings, seems to be broad-based, with the VIP and mass segments both showing improvement. After the unexpectedly strong rally, the sector’s valuation now appears more expen-sive. We expect GGR to rise by 9% YoY in 2017, but these companies have signifi-cant operating leverage. We like Galaxy Entertainment (0027.HK), given its valuation and strong execution in Cotai. TEXTILE SECTOR - The leading textile & garment names, including Nameson [1982.HK], Pacific Textile [1382.HK], Regina Miracle [2199.HK] and Texwinca [0321.HK], reported 1H FY17 results in last two weeks. The US market is one of the weakest markets, especially in the mass-market segment of the HK-listed textile & garment plays. China is a growing market for the textile & garment names. The exist-ing expansion plans of HK-listed textile & garment names in Vietnam will go ahead due to cost benefits, risk diversification and duty-free access to other markets. We believe that the recent share price correction of the textile & garment names caused by concerns about President-elect Donald Trump’s potential trade policy is overdone and that it would be difficult to rebuild the upstream textile industry in the US.

SNIPPETS

HONG KONG RETAIL SECTOR - Hong Kong retail sales value decreased by only 2.9% YoY in October 2016, with the drop narrowing compared to -4% YoY in Sept and -9% YoY in the first 10 months of the year. Sales of motor vehicles (-20%YoY) and electrical goods (-21%YoY) fell the most. Notably, helped by the pick-up in the number of Mainland tourists, sales of jewellery and watches edged down only 0.1% YoY, which supports what we hear from Chow Tai Fook (1929.HK, NR) and Luk Fook (590.HK, NR). Luk Fook also mentioned in the NDR that as the recovery in spending is still tentative and not broad-based, they have managed to negotiate a double digit cut in their HK rental costs for two-thirds of their stores, many before contract expiry. The rental savings should benefit their margins. ANTON OILFIELD SERVICES [3337.HK; HK$1.12] - China Oil HBP Science & Technology (002554.CH) announced that it will spend up to RMB100m to acquire up to a 5% stake in Anton Oilfield Services. The former will acquire the shares through various ways, such as a share placement, the secondary market, or a block trade. China Oil HBP explained that the move will strengthen its strategic relationship with Anton.

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Strategy

December 2, 2016

Wong Chi Man—Head of Research

(852) 3698-6317

[email protected]

Livy Lyu—Research Assistant

(852) 3698 6393

[email protected]

Finalized Stock Picks for SZ-HK Stock Connect

(Northbound) As Shenzhen-Hong Kong Stock Connect (SZ-HK Stock Connect) will be launched officially

on December 5, we reviewed the eligible stock list for northbound trading and updated our

recommended stock list, based on the latest recommendations from our A-share research

team: North Huajin Chemical Industries (000059.CH), Tianqi Lithium Industries

(002466.CH), Aier Eye Hospital (300015.CH), Shenzhen Inovance Technology Co Ltd

(300124.CH), Hualan Biological Engineering (002007.CH), Zhejiang Semir Garment

(002563.CH), Chaozhou Three-Circle Group (300408.CH), AVIC Electromechanical Sys-

tems (002013.CH), Global Top E-Commerce (002640.CH), Shenzhen Zhongjin Lingnan

Nonfemet (000060.CH), Fujian Sunner Development (002299.CH), Yuan Longping High-

tech Agriculture (000998.CH), Guangdong Haid Group (002311.CH), Zibo Qixiang Tengda

Chemical (002408.CH) and Org Packaging (002701.CH).

881 A-shares to be covered by SZ-HK Connect (northbound). The investment universe

includes 267 stocks from the Shenzhen Main Board, 411 stocks from the SME Board and

203 stocks from ChiNext. They represent about 71% of the total market cap and 66% of the

daily trading volume of Shenzhen A-shares. (Figure 2a-k).

Offering a much wider range of choices. Since there are 569 tradable stocks in Shanghai

-Hong Kong Stock Connect (northbound), the addition of 881 A-shares from SZ-HK Stock

Connect will provide many more choices for investors.

Updated stock ideas based on two angles. As the investable universe is so big, we offer

15 stock ideas based on two angles: (1) stocks from our A-share team’s latest model portfo-

lio; and (2) the Top 14 stocks recommended by our A-share team in the past few weeks

based on market cap.

(A) Stocks from our A-share team’s latest model portfolio

(1) North Huajin Chemical Industries [000059.CH]: The Company manufactures and mar-

kets fertilizers, including urea, liquid ammonia, and compound fertilizers. The Company,

through its subsidiaries, also manufactures petrochemical products and operates restau-

rants. A relatively low oil price will benefit the Company’s refinery business, which has annu-

al capacity of 8m tonnes of oil and 630,000 tonnes of ethylene. Its 1,3-Butadiene business

will also benefit from the price recovery of natural rubber. Currently, the Company has annu-

al capacity of 100,000 tonnes of 1,3-Butadiene and 200,000 tonnes of ABS. Our A-share

research team forecasts 2016E and 2017E EPS growth of 352% and 24%, respectively.

(B) Top 14 stock picks recommended by our A-share team in the past few weeks

based on market cap

(1) Tianqi Lithium Industries [002466.CH]: The Company develops, manufactures and

sells lithium products. The Company's products include industrial lithium carbonate, battery

lithium carbonate, lithium chloride, and lithium hydroxide. It is a direct beneficiary of the rap-

id growth of the electric vehicle market in China. Our A-share research team projects EPS

growth of 76% in 2016E and 12% in 2017E. (more on next page)

3

(2) Aier Eye Hospital [300015.CH]: The Company provides ophthalmological services,

including ophthalmological diagnosis and treatment. It operates more than 120 hospitals,

covering 27 provinces in China. Its major growth drivers include (i) the low penetration rate

of refractive surgery in China; (ii) stable demand for cataract surgery; and (iii) optometry.

Our A-share research expects to see sustainable growth of the Company thanks to its well-

established hospital network. EPS for 2016E/2017E is expected to grow 33%/40%, respec-

tively.

(3) Shenzhen Inovance Technology [300124.CH]: The Company develops, manufactures

and sells automated control products, including low-frequency converters, servo drives, and

programmable logic controllers (PLCs). In 1H16, the Company’s revenue grew 31.75% YoY

to RMB1.465bn, and net profit increased 17.72% to RMB389m. In particular, its new energy

vehicle motor controller posted revenue growth of 75% to RMB281m. In the future, urban

rail-related products will be a new growth driver for the Company. Our A-share research

team expects its 2016E and 2017E net profit to grow 21% and 20% YoY, respectively.

(4) Hualan Biological Engineering [002007.CH]: The Company produces and markets

human serum albumin (HSA), gamma globulin, frozen prothrombin (PCC), and other related

biological products. It is a leader in China’s blood product market. Our A-share research

team expects the supply shortage of blood products to continue and its 2016E and 2017E

net profit to grow 36% YoY in both years.

(5) Zhejiang Semir Garment [002563.CH]: The Company designs, develops, outsources

production for, markets and distributes apparel. Its main business is casual wear and chil-

dren's apparel. We expect the Company to maintain its leadership in the children’s apparel

market. It is trying to improve its inventory turnover to raise profitability. The rapid growth of

the e-commerce business will help the Company increase efficiency and develop a new

business model. Our A-share research team projects net profit growth of 20% for both

2016E and 2017E.

(6) Chaozhou Three-Circle [300408.CH]: The Company manufactures advanced ceram-

ics. It researches, develops, produces, and sells ceramic ferrules, sleeves, substrates, ca-

pacitors, and other ceramic products. The Company provides its products for the optic tele-

communication, machinery, environmental protection, and new energy industries. There are

three major growth drivers: (i) fibre optic ferrules, which should enjoy strong demand thanks

to large optical communication component tenders from China Mobile and China Telecom;

(ii) ceramic packaging substrates, which will benefit from the increasing shipment volume of

consumer electronics products, wearable gadgets and Internet of Things products; and (iii)

zirconia ceramic rear covers, which will see increasing applications in smartphones. Our A-

share research team projects EPS growth of 25% in both 2016E and 2017E.

(7) AVIC Electromechanical Systems [002013.CH]: The Company manufactures and

markets precision punching products, including angle modulation devices for auto seats,

sliding rails, seat lifting devices, and other related products. As the listing platform for the

parent company’s electromechanical business, we see high potential for asset injections

from the research institute. Our A-share research team projects EPS growth of 21% for

2016E and 14% for 2017E before including any upside from asset injections.

(more on next page)

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(8) Global Top E-Commerce [002640.CH]: The Company is in the businesses of cross-

border E-commerce, and the design, production and marketing of trousers for men and

women. The Company’s 1H16 revenue surged 186% YoY to RMB3.4bn, and net profit also

jumped 138% YoY to RMB158m. We expect it to maintain rapid growth in 2017, driven by

its export B2C business. Our A-share research team projects net profit growth of 220% and

100% for 2016E and 2017E, respectively.

(9) Shenzhen Zhongjin Lingnan Nonfemet [000060.CH]: The Company mines, extracts,

and refines lead and zinc products. The Company, through its subsidiaries, produces alu-

minium windows and doors, and glass curtain walls. Shenzhen Zhongjin has also invested

in merchandise trading, real estate, and taxi transportation businesses. Thanks to the price

rally of lead and zine, our A-share research team forecasts a strong earnings recovery for

the Company, with 2016E and 2017E EPS expected to grow 100% and 94%, respectively.

(10) Fujian Sunner Development [002299.CH]: The Company processes and markets

poultry. Its products include frozen chicken meat and other chicken parts. In 9M2016, the

Company’s revenue grew 21.35% YoY to RMB6.14bn, and recurring net profit surged 204%

to RMB443m. The strong profit growth was driven by better ASPs (the ASP for frozen chick-

en meat rose >10% in Q3 vs. Q1) on the back of the recovering industry cycle and improved

cost management. Our A-share team expects the industry cycle to remain favourable until

2018 and projects that the Company’s EPS will return to positive in 2016E (RMB0.8) and

grow 100% in 2017E.

(11) Yuan Longping High-tech Agriculture [000998.CH]: The Company produces and

markets seeds of grains, vegetables, and fruits. The Company also develops and manufac-

tures agricultural chemicals, operates hotels, develops and invests in real estate. The Com-

pany’s two new products for Asian rice have been well received by the market, which will

support organic growth of 20%−30% of this business segment. After CITIC took the control

of the Company, its M&A progress in domestic and overseas markets is likely to accelerate.

Our A-share research team forecasts 2016E and 2017E net profit growth of 20% and 31%,

respectively.

(12) Guangdong Haid Group [002311.CH]: The Company manufactures and markets ani-

mal feed. The Company imports distiller's dried grains with solubles for ingredients in fish

and animal feed. Serious flooding along the Yangtze River in July this year is likely to affect

the supply of fresh water fish, so fish prices are likely to go up in 2017. Higher fish prices

should drive demand for fish feed. Our A-share research team forecasts 2016E and 2017E

net profit growth of 23% and 40%, respectively.

(13) Zibo Qixiang Tengda Chemical [002408.CH]: The Company manufactures, produces

and sells rubber products. The Company's products include methyl ethyl ketone, methyl tert-

butyl ether, butylamineby, and tertbutyl. We have a bullish view on the price of natural rub-

ber in 2017. If the price of 1,3-Butadiene goes up by RMB1000/tonne, the Company’s EPS

will increase by RMB0.06. Therefore the earnings sensitivity is high. In addition, the new

controlling shareholder may inject quality assets into the Company. Our A-share research

team forecasts 2016E and 2017E EPS growth of 114% and 72%, respectively.

(more on next page)

5

(14) Org Packaging [002701.CH]: The Company develops, designs, manufactures and

sells food and beverage metal packaging products. The Company's main products include

food and beverage cans. The heavy rainfall in 1H16 affected demand for beverages, which

hit the Company’s three-piece can business. We see a recovery in Q3, driven by its major

customer Red Bull. The two-piece can business may become a new growth driver. Its cur-

rent annual production capacity is 4.1bn units, and the effective capacity will reach 5bn units

in 2017. If it raises its ASP by RMB0.02 next year, revenue will increase by RMB100m.

Once the contract renewal with Red Bull Thailand is confirmed, it should remove the over-

hang. Our A-share team expects the Company’s net profit to grow 18% in 2016E.

Chinese name Company namePrice

(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x) PBR (x)

Dividend

yield (%)

Sector

000059 CH Equity 华锦股份 North Huajin Chemical Industries Co Ltd 9.67 15,467 46.05 10.18 8.19 1.54 n.a. Chemicals

002466 CH Equity 天齐锂业 Tianqi Lithium Industries Inc 37.82 37,609 39.81 22.65 20.22 8.67 0.21 Chemicals

300015 CH Equity 爱尔眼科 Aier Eye Hospital Group Co Ltd 33.41 33,650 77.70 58.61 41.76 12.52 0.88 Healthcare-Services

300124 CH Equity 汇川技术 Shenzhen Inovance Technology Co Ltd 20.95 33,605 41.54 34.34 28.70 7.58 1.19 Electronics

002007 CH Equity 华兰生物 Hualan Biological Engineering Inc 35.5 33,018 56.06 41.28 30.34 8.16 0.70 Biotechnology

002563 CH Equity 森马服饰 Zhejiang Semir Garment Co Ltd 11.2 30,179 22.40 18.67 15.56 3.15 2.23 Apparel

300408 CH Equity 三环集团 Chaozhou Three-Circle Group Co Ltd 17 29,383 29.30 27.87 20.24 6.10 1.03 Miscellaneous Manufacturing

002013 CH Equity 中航机电 AVIC Electromechanical Systems Co Ltd 18.28 29,318 59.96 49.41 43.52 4.07 0.18 Aerospace/Defense

002640 CH Equity 跨境通 Global Top E-Commerce Co Ltd 20.15 28,797 230.37 71.99 36.00 6.49 0.13 Retail

000060 CH Equity 中金岭南 Shenzhen Zhongjin Lingnan Nonfemet Co Ltd 12.75 28,211 140.35 70.83 36.43 3.71 0.08 Mining

002299 CH Equity 圣农发展 Fujian Sunner Development Co Ltd 23.15 25,717 n.a. 28.94 14.47 4.49 n.a. Food

000998 CH Equity 隆平高科 Yuan Longping High-tech Agriculture Co Ltd 19.97 25,086 51.09 42.52 32.58 4.78 1.00 Agriculture

002311 CH Equity 海大集团 Guangdong Haid Group Co Ltd 14.91 22,984 29.47 24.05 17.14 4.08 3.35 Agriculture

002408 CH Equity 齐翔腾达 Zibo Qixiang Tengda Chemical Co Ltd 12.53 22,243 120.89 56.95 32.97 3.95 0.73 Chemicals

002701 CH Equity 奥瑞金 Org Packaging Co Ltd 9.32 21,951 19.01 18.57 15.59 4.43 2.01 Packaging&Containers

Figure 1: Valuation table

Sources: Bloomberg, CGIS Research

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Figure 2a: Eligible stocks for SZ-HK Connect (northbound)


Chinese name Company name Price

(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

002027 CH Equity 分众传媒 Focus Media Information Technology Co Ltd 17.60 153,768 7.59 35.48 29.00 23.07 0.71 Advertising

000917 CH Equity 电广传媒 Hunan TV & Broadcast Intermediary Co Ltd 15.61 22,128 87.83 30.02 25.18 2.06 0.26 Advertising

002400 CH Equity 省广股份 Guangdong Advertising Group Co Ltd 13.79 18,493 26.80 26.72 21.05 3.68 0.39 Advertising

300392 CH Equity 腾信股份 Beijing Tensyn Digital Marketing Technology JSC 21.11 8,106 55.55 n.a. n.a. 9.01 0.27 Advertising

300071 CH Equity 华谊嘉信 Spearhead Integrated Marketing Communication Co Ltd 11.45 7,818 45.38 n.a. n.a. 6.59 0.35 Advertising

000768 CH Equity 中航飞机 AVIC Aircraft Co Ltd 22.26 61,630 96.27 110.75 82.14 4.09 0.45 Aerospace/Defense

002013 CH Equity 中航机电 AVIC Electromechanical Systems Co Ltd 18.28 29,318 59.96 49.41 43.52 4.07 0.18 Aerospace/Defense

002023 CH Equity 海特高新 Sichuan Haite High-tech Co Ltd 15.60 11,806 297.37 107.59 59.32 3.20 n.a. Aerospace/Defense

300034 CH Equity 钢研高纳 Beijing Cisri-Gaona Materials & Technology Co Ltd 20.98 8,780 70.00 57.80 45.51 6.96 0.29 Aerospace/Defense

300397 CH Equity 天和防务 Xi'an Tian He Defense Technology Co Ltd 29.65 7,116 n.a. n.a. n.a. 6.05 n.a. Aerospace/Defense

300498 CH Equity 温氏股份 Guangdong Wens Foodstuffs Group Co Ltd 35.71 155,349 n.a. 11.10 11.51 5.29 1.40 Agriculture

000876 CH Equity 新希望 New Hope Liuhe Co Ltd 8.58 35,763 13.99 10.97 9.26 1.77 3.21 Agriculture

002385 CH Equity 大北农 Beijing Dabeinong Technology Group Co Ltd 7.49 30,714 33.39 28.37 22.09 3.43 0.71 Agriculture

000998 CH Equity 隆平高科 Yuan Longping High-tech Agriculture Co Ltd 19.97 25,086 51.09 42.52 32.58 4.78 1.00 Agriculture

002311 CH Equity 海大集团 Guangdong Haid Group Co Ltd 14.91 22,984 29.47 24.05 17.14 4.08 3.35 Agriculture

002505 CH Equity 大康农业 Hunan Dakang International Food & Agriculture Co Ltd 3.64 19,967 1,758.10 n.a. n.a. 3.43 n.a. Agriculture

002041 CH Equity 登海种业 Shandong Denghai Seeds Co Ltd 17.01 14,969 33.34 30.82 23.63 6.03 n.a. Agriculture

002157 CH Equity 正邦科技 Jiangxi Zhengbang Technology Co Ltd 7.36 14,826 13.99 8.82 7.76 3.67 0.45 Agriculture

002458 CH Equity 益生股份 Shandong Yisheng Livestock & Poultry Breeding Co Ltd 38.76 12,927 35.48 16.43 11.61 9.10 n.a. Agriculture

000860 CH Equity 顺鑫农业 Beijing Shunxin Agriculture Co Ltd 20.69 11,806 35.22 26.03 20.84 2.11 0.48 Agriculture

002100 CH Equity 天康生物 Tecon Biology Co Ltd 9.61 9,258 26.35 23.16 17.86 3.62 1.25 Agriculture

002086 CH Equity 东方海洋 Shandong Oriental Ocean Sci-Tech Co Ltd 11.72 8,060 117.93 n.a. n.a. 2.84 0.24 Agriculture

000735 CH Equity 罗牛山 Luoniushan Co Ltd 6.79 7,819 64.19 n.a. n.a. 2.28 n.a. Agriculture

002239 CH Equity 奥特佳 Aotecar New Energy Technology Co Ltd n.a. n.a. n.a. 40.03 31.13 n.a. n.a. Apparel

002563 CH Equity 森马服饰 Zhejiang Semir Garment Co Ltd 11.20 30,179 22.40 18.67 15.56 3.15 2.23 Apparel

002503 CH Equity 搜于特 Sou Yu Te Group Co Ltd 13.83 21,385 60.83 39.51 26.39 7.32 0.11 Apparel

002699 CH Equity 美盛文化 Meisheng Cultural & Creative Corp Ltd 34.63 17,499 84.00 76.45 55.85 5.17 n.a. Apparel

000158 CH Equity 常山股份 Shijiazhuang Changshan Textile Co Ltd 13.71 17,431 66.05 48.11 38.08 3.27 0.29 Apparel

000982 CH Equity 中银绒业 Ningxia Zhongyin Cashmere Co Ltd 9.15 16,516 n.a. n.a. n.a. 5.43 n.a. Apparel

000018 CH Equity 神州长城 Sino Great Wall Co Ltd 10.36 15,822 29.73 33.21 23.55 10.92 n.a. Apparel

000681 CH Equity 视觉中国 Visual China Group Co Ltd 22.33 15,644 82.11 n.a. n.a. 7.11 n.a. Apparel

002036 CH Equity 联创电子 LianChuang Electronic Technology Co Ltd 21.52 12,527 62.64 48.91 33.63 8.13 0.14 Apparel

002070 CH Equity 众和股份 Zhonghe Co Ltd 17.20 10,926 n.a. 31.85 16.86 14.47 n.a. Apparel

000726 CH Equity 鲁泰Ａ Luthai Textile Co Ltd 12.92 10,379 16.38 15.33 13.53 1.78 3.87 Apparel

002293 CH Equity 罗莱生活 Luolai Lifestyle Technology Co Ltd 14.17 9,945 28.75 26.89 23.98 3.71 1.41 Apparel

000936 CH Equity 华西股份 Jiangsu Huaxicun Co Ltd 10.54 9,339 16.71 23.42 35.49 1.92 0.28 Apparel

002029 CH Equity 七匹狼 Fujian Septwolves Industry Co Ltd 10.94 8,267 31.74 32.18 27.91 1.62 0.91 Apparel

002154 CH Equity 报喜鸟 Zhejiang Baoxiniao Garment Co Ltd 5.58 6,540 n.a. n.a. 310.00 2.44 0.18 Apparel

002494 CH Equity 华斯股份 Huasi Holding Co Ltd 16.37 6,312 363.08 83.95 56.84 4.05 0.15 Apparel

002594 CH Equity 比亚迪 BYD Co Ltd 55.30 137,668 31.22 28.80 23.88 3.23 0.66 Auto Manufacturers

000625 CH Equity 长安汽车 Chongqing Changan Automobile Co Ltd 16.73 74,788 7.13 6.96 6.64 2.00 3.83 Auto Manufacturers

000883 CH Equity 湖北能源 Hubei Energy Group Co Ltd 4.96 32,277 20.35 n.a. n.a. 1.40 3.67 Auto Manufacturers

000581 CH Equity 威孚高科 Weifu High-Technology Group Co Ltd 25.12 24,145 16.60 14.97 13.40 2.02 1.99 Auto Manufacturers

000550 CH Equity 江铃汽车 Jiangling Motors Corp Ltd 30.53 22,106 14.84 11.62 9.24 2.16 3.37 Auto Manufacturers

000800 CH Equity 一汽轿车 FAW CAR Co Ltd 12.00 19,530 n.a. 352.94 521.74 2.46 0.36 Auto Manufacturers

000957 CH Equity 中通客车 Zhongtong Bus & Holding Co Ltd 17.26 10,234 15.27 11.17 9.33 4.17 1.45 Auto Manufacturers

000572 CH Equity 海马汽车 Haima Automobile Group Co Ltd 5.48 9,013 34.56 45.67 39.14 1.20 0.91 Auto Manufacturers

000338 CH Equity 潍柴动力 Weichai Power Co Ltd 11.07 45,164 30.30 22.45 18.92 1.39 1.81 Auto Parts&Equipment

002555 CH Equity 三七互娱 Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co Ltd 18.78 39,152 41.92 29.12 24.39 9.31 0.27 Auto Parts&Equipment

002602 CH Equity 世纪华通 Zhejiang Century Huatong Group Co Ltd 37.66 38,680 73.97 n.a. n.a. 9.05 0.27 Auto Parts&Equipment

002085 CH Equity 万丰奥威 Zhejiang Wanfeng Auto Wheel Co Ltd 19.99 36,430 32.83 36.21 29.66 7.49 0.13 Auto Parts&Equipment

000559 CH Equity 万向钱潮 Wanxiang Qianchao Co Ltd 14.46 33,176 39.94 37.08 32.13 7.83 1.73 Auto Parts&Equipment

002434 CH Equity 万里扬 Zhejiang Wanliyang Co Ltd 15.32 15,626 66.32 49.42 43.77 6.35 0.49 Auto Parts&Equipment

000519 CH Equity 江南红箭 Hunan Jiangnan Red Arrow Co Ltd 13.37 13,814 165.76 219.18 121.55 3.26 n.a. Auto Parts&Equipment

300100 CH Equity 双林股份 Ningbo Shuanglin Auto Parts Co Ltd 34.00 13,530 43.24 38.12 29.57 5.78 0.29 Auto Parts&Equipment

000901 CH Equity 航天科技 Aerospace Hi-Tech Holdings Grp Ltd 34.34 12,981 229.48 114.47 85.85 7.87 n.a. Auto Parts&Equipment

000631 CH Equity 顺发恒业 Shunfa Hengye Corp 5.31 12,917 32.10 n.a. n.a. 2.35 1.27 Auto Parts&Equipment

002190 CH Equity 成飞集成 Sichuan Chengfei Integration Technology Corp 36.49 12,596 94.78 81.09 38.82 7.18 0.27 Auto Parts&Equipment

002625 CH Equity 龙生股份 Zhejiang Longsheng Auto Parts Co Ltd 41.76 12,559 251.86 n.a. n.a. 22.20 0.05 Auto Parts&Equipment

002048 CH Equity 宁波华翔 Ningbo Huaxiang Electronic Co Ltd 23.56 12,488 29.64 19.88 14.63 2.47 0.42 Auto Parts&Equipment

002662 CH Equity 京威股份 Beijing WKW Automotive Parts Co Ltd 16.60 12,450 32.79 17.35 15.76 2.83 1.81 Auto Parts&Equipment

002284 CH Equity 亚太股份 Zhejiang Asia-Pacific Mechanical & Electronic Co Ltd 16.49 12,162 83.71 69.29 55.34 4.62 0.61 Auto Parts&Equipment

002283 CH Equity 天润曲轴 Tianrun Crankshaft Co Ltd 10.75 12,039 75.01 52.44 45.74 3.46 0.19 Auto Parts&Equipment

000030 CH Equity 富奥股份 FAWER Automotive Parts Co Ltd 9.10 11,663 18.12 15.96 13.79 2.35 1.65 Auto Parts&Equipment

002590 CH Equity 万安科技 Zhejiang Vie Science & Technology Co Ltd 22.80 10,936 90.72 87.69 66.67 6.45 0.18 Auto Parts&Equipment

002224 CH Equity 三力士 Sanlux Co Ltd 16.63 10,919 48.65 39.60 28.67 7.18 0.60 Auto Parts&Equipment

002703 CH Equity 浙江世宝 Zhejiang Shibao Co Ltd 38.80 9,734 218.98 n.a. n.a. 8.38 0.26 Auto Parts&Equipment

000760 CH Equity 斯太尔 Steyr Motors Co Ltd 11.89 9,375 n.a. 41.00 23.31 5.22 n.a. Auto Parts&Equipment

002488 CH Equity 金固股份 Zhejiang Jingu Co Ltd 17.58 8,939 n.a. 119.59 62.12 6.00 0.46 Auto Parts&Equipment

002031 CH Equity 巨轮智能 Greatoo Intelligent Equipment Inc 3.75 8,248 209.61 46.88 37.50 2.80 0.89 Auto Parts&Equipment

002355 CH Equity 兴民智通 Xingmin Intelligent Transportation Systems Group Co Ltd 15.49 7,957 186.11 99.94 63.74 3.96 0.06 Auto Parts&Equipment

002448 CH Equity 中原内配 ZYNP Corp 12.09 7,110 35.09 33.31 29.85 3.34 0.83 Auto Parts&Equipment

002454 CH Equity 松芝股份 Songz Automobile Air Conditioning Co Ltd 14.94 6,305 22.20 18.61 15.09 2.28 0.54 Auto Parts&Equipment

7

Figure 2b: Eligible stocks for SZ-HK Connect (northbound)



(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

000001 CH Equity 平安银行 Ping An Bank Co Ltd 9.60 164,836 7.22 6.80 6.52 0.92 1.33 Banks

002142 CH Equity 宁波银行 Bank of Ningbo Co Ltd 17.80 69,416 9.15 9.21 8.21 1.38 2.53 Banks

000858 CH Equity 五粮液 Wuliangye Yibin Co Ltd 36.17 137,300 20.55 19.60 17.00 3.02 2.21 Beverages

002304 CH Equity 洋河股份 Jiangsu Yanghe Brewery Joint-Stock Co Ltd 70.45 106,167 18.48 18.40 16.35 4.24 2.56 Beverages

000568 CH Equity 泸州老窖 Luzhou Laojiao Co Ltd 33.86 47,480 28.66 26.70 21.94 4.48 2.36 Beverages

000869 CH Equity 张裕Ａ Yantai Changyu Pioneer Wine Co Ltd 39.54 22,348 27.91 25.46 23.34 3.37 1.26 Beverages

000729 CH Equity 燕京啤酒 Beijing Yanjing Brewery Co Ltd 7.62 21,477 61.50 38.10 35.77 1.64 0.92 Beverages

000596 CH Equity 古井贡酒 Anhui Gujing Distillery Co Ltd 46.97 21,155 29.73 28.55 24.19 4.41 0.21 Beverages

000848 CH Equity 承德露露 Hebei Chengde Lolo Co 12.38 12,115 25.25 23.10 21.46 6.41 1.24 Beverages

002646 CH Equity 青青稞酒 Qinghai Huzhu Barley Wine Co Ltd 19.85 8,933 46.76 31.51 27.27 3.63 0.91 Beverages

002461 CH Equity 珠江啤酒 Guangzhou Zhujiang Brewery Co Ltd 12.86 8,747 74.60 75.65 61.24 2.52 0.39 Beverages

002007 CH Equity 华兰生物 Hualan Biological Engineering Inc 35.50 33,018 56.06 41.28 30.34 8.16 0.70 Biotechnology

002262 CH Equity 恩华药业 Jiangsu Nhwa Pharmaceutical Co Ltd 19.72 12,438 41.93 38.00 30.39 6.10 0.23 Biotechnology

002022 CH Equity 科华生物 Shanghai Kehua Bio-Engineering Co Ltd 23.30 11,943 53.05 46.41 39.36 6.54 0.52 Biotechnology

002675 CH Equity 东诚药业 Yantai Dongcheng Pharmaceutical Co Ltd 16.18 11,384 90.26 77.05 33.71 5.05 0.23 Biotechnology

300238 CH Equity 冠昊生物 Grandhope Biotech Co Ltd 41.39 11,001 162.47 n.a. n.a. 8.13 n.a. Biotechnology

300204 CH Equity 舒泰神 Staidson Beijing Biopharmaceuticals Co Ltd 19.55 9,356 36.64 n.a. n.a. 5.15 0.73 Biotechnology

000518 CH Equity 四环生物 Jiangsu Sihuan Bioengineering Co Ltd 8.65 8,906 n.a. n.a. n.a. 14.43 n.a. Biotechnology

000990 CH Equity 诚志股份 Chengzhi Co Ltd 17.13 6,641 76.72 n.a. n.a. 2.77 0.18 Biotechnology

300189 CH Equity 神农基因 Grand Agriseeds Technology Inc 5.40 5,530 n.a. 142.11 78.26 3.97 0.04 Biotechnology

000651 CH Equity 格力电器 Gree Electric Appliances Inc of Zhuhai 30.59 184,021 13.31 12.83 11.41 3.70 4.90 Building Materials

002081 CH Equity 金螳螂 Suzhou Gold Mantis Construction Decoration Co Ltd 11.53 30,477 18.69 15.60 13.44 3.16 1.16 Building Materials

002354 CH Equity 天神娱乐 Dalian Zeus Entertainment Group Co Ltd 79.34 23,174 47.98 36.73 28.44 4.48 0.31 Building Materials

000012 CH Equity 南玻Ａ CSG Holding Co Ltd 13.80 22,636 n.a. 31.15 25.41 3.60 2.17 Building Materials

002271 CH Equity 东方雨虹 Beijing Oriental Yuhong Waterproof Technology Co Ltd 22.48 19,843 18.71 17.84 14.45 4.23 0.44 Building Materials

000786 CH Equity 北新建材 Beijing New Building Materials PLC 10.92 19,531 14.63 13.72 11.90 1.85 1.60 Building Materials

002665 CH Equity 首航节能 Beijing Shouhang Resources Saving Co Ltd 9.12 17,977 91.94 80.71 26.82 6.28 0.19 Building Materials

000401 CH Equity 冀东水泥 Tangshan Jidong Cement Co Ltd 12.40 16,709 n.a. n.a. 29.31 1.77 n.a. Building Materials

002043 CH Equity 兔宝宝 DeHua TB New Decoration Materials Co Ltd 12.69 10,507 30.29 39.91 27.00 3.97 0.68 Building Materials

002468 CH Equity 艾迪西 Zhejiang IDC Fluid Control Co Ltd 30.99 10,282 2,480.59 39.58 32.55 14.09 0.03 Building Materials

002596 CH Equity 海南瑞泽 Hainan Ruize New Building Material Co Ltd 29.18 9,494 97.91 n.a. n.a. 4.57 0.10 Building Materials

002233 CH Equity 塔牌集团 Guangdong Tapai Group Co Ltd 9.81 8,777 22.00 20.23 16.21 1.97 1.83 Building Materials

002302 CH Equity 西部建设 China West Construction Group Co Ltd 7.94 8,196 27.48 19.95 16.20 1.97 0.63 Building Materials

300004 CH Equity 南风股份 Nanfeng Ventilator Co Ltd 15.88 8,086 7,208.35 59.48 38.45 2.66 0.19 Building Materials

300228 CH Equity 富瑞特装 Zhangjiagang Furui Special Equipment Co Ltd 16.29 7,667 n.a. 85.74 70.83 3.98 0.04 Building Materials

000877 CH Equity 天山股份 Xinjiang Tianshan Cement Co Ltd 7.14 6,284 n.a. 102.00 27.46 1.07 n.a. Building Materials

300072 CH Equity 三聚环保 Beijing Sanju Environmental Protection and New Material Co Ltd 47.48 56,624 38.33 36.08 24.19 9.53 0.28 Chemicals

002411 CH Equity 必康股份 Jiangsu Bicon Pharmaceutical Listed Co 26.06 39,931 21.40 38.90 19.74 5.76 0.27 Chemicals

000792 CH Equity 盐湖股份 Qinghai Salt Lake Industry Co Ltd 20.37 37,835 135.25 72.75 46.09 1.64 0.15 Chemicals

002466 CH Equity 天齐锂业 Tianqi Lithium Industries Inc 37.82 37,609 39.81 22.65 20.22 8.67 0.21 Chemicals

002493 CH Equity 荣盛石化 Rongsheng Petro Chemical Co Ltd 14.72 37,448 23.75 19.37 16.00 3.13 0.17 Chemicals

000627 CH Equity 天茂集团 Hubei Biocause Pharmaceutical Co Ltd 8.65 36,842 18.17 n.a. n.a. 2.73 0.11 Chemicals

002601 CH Equity 佰利联 Henan Billions Chemicals Co Ltd 13.43 27,292 50.80 44.32 19.46 0.74 2.23 Chemicals

300459 CH Equity 金科娱乐 Zhejiang Jinke Entertainment Cultural Co Ltd 17.21 27,213 271.74 n.a. n.a. 21.82 0.15 Chemicals

002092 CH Equity 中泰化学 Xinjiang Zhongtai Chemical Co Ltd 12.60 27,045 35.00 30.73 24.71 1.97 0.16 Chemicals

002470 CH Equity 金正大 Kingenta Ecological Engineering Group Co Ltd 7.85 24,647 19.48 20.03 16.32 2.72 0.64 Chemicals

000703 CH Equity 恒逸石化 Hengyi Petrochemical Co Ltd 13.91 22,532 26.73 27.27 18.98 2.14 n.a. Chemicals

002408 CH Equity 齐翔腾达 Zibo Qixiang Tengda Chemical Co Ltd 12.53 22,243 120.89 56.95 32.97 3.95 0.73 Chemicals

002018 CH Equity 华信国际 CEFC Anhui International Holding Co Ltd 9.15 20,842 58.04 n.a. n.a. 6.84 0.17 Chemicals

002407 CH Equity 多氟多 Do-Fluoride Chemicals Co Ltd 30.84 19,371 42.88 33.70 25.96 7.69 0.19 Chemicals

002002 CH Equity 鸿达兴业 Hongda Xingye Co Ltd 7.45 18,006 24.92 23.07 17.05 4.85 1.08 Chemicals

002581 CH Equity 未名医药 Shandong Sinobioway Biomedicine Co Ltd 26.03 17,173 41.61 40.67 33.81 7.40 0.19 Chemicals

002709 CH Equity 天赐材料 Guangzhou Tinci Materials Technology Co Ltd 49.82 16,194 43.35 40.44 34.48 10.88 0.14 Chemicals

000059 CH Equity 华锦股份 North Huajin Chemical Industries Co Ltd 9.67 15,467 46.05 10.18 8.19 1.54 n.a. Chemicals

000902 CH Equity 新洋丰 Hubei Xinyangfeng Fertilizer Co Ltd 11.63 15,294 21.96 16.93 13.76 2.74 1.29 Chemicals

002643 CH Equity 万润股份 Valiant Co Ltd 39.36 14,313 37.10 36.99 28.48 3.81 0.76 Chemicals

002326 CH Equity 永太科技 Zhejiang Yongtai Technology Co Ltd 17.34 13,848 100.57 66.69 40.80 7.08 0.35 Chemicals

002588 CH Equity 史丹利 Stanley Agricultural Group Co Ltd 11.66 13,585 25.21 19.83 16.08 3.42 0.86 Chemicals

002250 CH Equity 联化科技 Lianhe Chemical Technology Co Ltd 16.02 13,372 29.89 27.62 19.78 3.11 0.75 Chemicals

000687 CH Equity 华讯方舟 Huaxun Fangzhou Co Ltd 17.10 12,951 n.a. 57.00 39.31 9.89 n.a. Chemicals

002539 CH Equity 云图控股 Chengdu Wintrue Holding Co Ltd 12.67 12,798 55.09 40.09 21.77 4.29 0.63 Chemicals

002440 CH Equity 闰土股份 Zhejiang Runtu Co Ltd 16.34 12,533 25.17 16.51 14.95 2.05 2.45 Chemicals

000683 CH Equity 远兴能源 Inner Mongolia Yuan Xing Energy Co Ltd 3.03 11,819 292.71 60.60 37.88 1.36 n.a. Chemicals

000930 CH Equity 中粮生化 Cofco Biochemical Co Ltd 12.05 11,621 n.a. n.a. n.a. 7.55 n.a. Chemicals

000861 CH Equity 海印股份 Guangdong Highsun Group Co Ltd 5.08 11,429 53.59 49.80 42.33 3.63 n.a. Chemicals

300054 CH Equity 鼎龙股份 Hubei Dinglong Co Ltd 23.38 11,403 50.04 44.96 31.59 5.05 0.21 Chemicals

300037 CH Equity 新宙邦 Shenzhen Capchem Technology Co Ltd 61.00 11,225 47.15 43.63 36.53 5.32 0.49 Chemicals

002094 CH Equity 青岛金王 Qingdao Kingking Applied Chemistry Co Ltd 28.91 10,906 87.16 61.25 35.17 6.53 n.a. Chemicals

002145 CH Equity 中核钛白 CNNC Hua Yuan Titanium Dioxide Co Ltd 6.37 10,151 n.a. n.a. n.a. 4.03 n.a. Chemicals

002215 CH Equity 诺普信 Shenzhen Noposion Agrochemicals Co Ltd 10.87 9,936 n.a. 32.94 23.13 5.89 0.92 Chemicals

300109 CH Equity 新开源 Boai NKY Pharmaceuticals Ltd 57.42 9,789 116.56 n.a. n.a. 8.09 0.17 Chemicals

000525 CH Equity 红太阳 Nanjing Redsun Co Ltd 16.10 9,350 n.a. n.a. n.a. 2.00 3.11 Chemicals

002428 CH Equity 云南锗业 Yunnan Lincang Xinyuan Germanium Industrial Co Ltd 14.30 9,340 n.a. 116.26 84.12 6.15 0.21 Chemicals

002170 CH Equity 芭田股份 Shenzhen Batian Ecotypic Engineering Co Ltd 9.92 8,829 54.74 40.49 26.81 4.47 1.11 Chemicals

000669 CH Equity 金鸿能源 PetroChina Jinhong Energy Investment Co Ltd 18.02 8,758 42.77 31.61 29.54 2.24 0.83 Chemicals

000973 CH Equity 佛塑科技 FSPG Hi-Tech Co Ltd 8.26 7,991 80.77 n.a. n.a. 3.86 0.61 Chemicals

002538 CH Equity 司尔特 Anhui Sierte Fertilizer Industry Ltd Co 11.12 7,985 30.70 29.42 22.11 2.54 0.90 Chemicals

002496 CH Equity 辉丰股份 Jiangsu Huifeng Agrochemical Co Ltd 5.28 7,959 52.75 n.a. n.a. 2.33 0.50 Chemicals

002172 CH Equity 澳洋科技 Jiangsu Aoyang Technology Corp Ltd 10.77 7,900 30.42 32.64 19.41 6.65 n.a. Chemicals

000830 CH Equity 鲁西化工 Luxi Chemical Group Co Ltd 5.39 7,896 93.26 n.a. n.a. 1.32 n.a. Chemicals

002741 CH Equity 光华科技 Guangdong Guanghua Sci-Tech Co Ltd 21.80 7,848 136.25 121.11 94.78 10.77 n.a. Chemicals

000819 CH Equity 岳阳兴长 Yueyang Xingchang Petrochemical 29.55 7,636 190.88 n.a. n.a. 10.94 0.16 Chemicals

002556 CH Equity 辉隆股份 Anhui Huilong Agricultural Means of Production Co Ltd 9.68 6,946 55.55 n.a. n.a. 3.15 0.69 Chemicals

000422 CH Equity 湖北宜化 Hubei Yihua Chemical Industry Co Ltd 7.68 6,896 353.64 n.a. n.a. 1.13 0.13 Chemicals

002274 CH Equity 华昌化工 Jiangsu Huachang Chemical Co Ltd 9.90 6,286 232.25 n.a. n.a. 2.24 1.01 Chemicals

000782 CH Equity 美达股份 Guangdong Xinhui Meida Nylon Co Ltd 10.04 5,303 n.a. n.a. n.a. 4.35 0.20 Chemicals

8

Figure 2c: Eligible stocks for SZ-HK Connect (northbound)



(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

000983 CH Equity 西山煤电 Shanxi Xishan Coal & Electricity Power Co Ltd 10.25 32,300 776.04 n.a. n.a. 1.94 0.02 Coal

000937 CH Equity 冀中能源 Jizhong Energy Resources Co Ltd 8.07 28,516 66.10 113.66 31.16 1.54 0.06 Coal

000939 CH Equity 凯迪生态 Kaidi Ecological and Environmental Technology Co Ltd 10.80 16,279 28.85 27.48 21.30 2.15 n.a. Coal

002128 CH Equity 露天煤业 Huolinhe Opencut Coal Industry Corp Ltd of Inner Mongolia 8.93 14,595 20.56 22.61 16.39 1.58 1.12 Coal

000552 CH Equity 靖远煤电 Gansu Jingyuan Coal Industry and Electricity Power Co Ltd 4.03 9,216 64.50 38.38 20.67 1.49 0.50 Coal

002183 CH Equity 怡亚通 Eternal Asia Supply Chain Management Ltd 11.96 25,109 41.46 24.21 17.38 4.73 1.05 Commercial Services

002366 CH Equity 台海核电 Taihai Manoir Nuclear Equipment Co Ltd 55.71 24,152 86.04 43.02 32.45 13.87 0.09 Commercial Services

300058 CH Equity 蓝色光标 BlueFocus Communication Group Co Ltd 10.88 21,748 58.47 29.89 22.39 4.67 0.46 Commercial Services

000582 CH Equity 北部湾港 Beibuwan Port Co Ltd 17.44 16,639 38.61 41.52 n.a. 2.65 0.36 Commercial Services

002375 CH Equity 亚厦股份 Zhejiang Yasha Decoration Co Ltd 11.60 15,544 62.37 34.02 27.55 2.18 0.52 Commercial Services

002482 CH Equity 广田集团 Shenzhen Grandland Group Co Ltd 9.66 14,977 45.94 38.33 30.57 2.50 0.41 Commercial Services

002191 CH Equity 劲嘉股份 Shenzhen Jinjia Group Co Ltd 10.75 14,142 21.06 20.40 17.34 3.21 1.40 Commercial Services

002413 CH Equity 雷科防务 Jiangsu Leike Defense Technology Co Ltd 12.81 14,004 80.45 100.08 70.00 4.10 1.39 Commercial Services

300347 CH Equity 泰格医药 Hangzhou Tigermed Consulting Co Ltd 29.17 13,852 90.59 77.79 49.61 8.97 0.34 Commercial Services

300292 CH Equity 吴通控股 Wutong Holding Group Co Ltd 10.21 13,016 55.88 10.86 6.81 5.13 0.24 Commercial Services

000688 CH Equity 建新矿业 Jianxin Mining Co Ltd 11.32 12,874 39.86 31.44 22.64 7.76 n.a. Commercial Services

000828 CH Equity 东莞控股 Dongguan Development Holdings Co Ltd 12.32 12,807 15.12 17.99 16.43 2.61 2.44 Commercial Services

300339 CH Equity 润和软件 Jiangsu Hoperun Software Co Ltd 33.23 11,891 51.64 42.39 34.26 3.67 0.45 Commercial Services

300288 CH Equity 朗玛信息 Longmaster Information & Technology Co Ltd 33.94 11,470 114.13 n.a. n.a. 10.36 n.a. Commercial Services

002663 CH Equity 普邦园林 Pubang Landscape Architecture Co Ltd 6.51 11,142 92.73 46.50 33.21 2.56 0.18 Commercial Services

300012 CH Equity 华测检测 Centre Testing International Group Co Ltd 12.58 10,533 53.17 45.75 35.44 4.44 0.40 Commercial Services

002504 CH Equity 弘高创意 Beijing Honggao Creative Construction Design Co Ltd 9.13 9,366 15.14 26.09 21.38 8.71 0.66 Commercial Services

000900 CH Equity 现代投资 Xiandai Investment Co Ltd 8.51 8,611 11.11 12.70 11.05 1.16 0.47 Commercial Services

002229 CH Equity 鸿博股份 Hongbo Co Ltd 25.11 8,366 861.79 502.20 339.32 5.15 n.a. Commercial Services

000725 CH Equity 京东方Ａ BOE Technology Group Co Ltd 2.90 100,840 n.a. 96.67 32.22 1.32 0.34 Computers

300104 CH Equity 乐视网 Leshi Internet Information & Technology Corp Beijing 38.05 75,403 103.79 86.28 53.29 7.68 0.08 Computers

002065 CH Equity 东华软件 DHC Software Co Ltd 23.70 37,206 31.39 30.58 26.04 4.37 0.63 Computers

002152 CH Equity 广电运通 GRG Banking Equipment Co Ltd 15.26 24,710 24.41 22.38 18.75 3.00 0.87 Computers

000977 CH Equity 浪潮信息 Inspur Electronic Information Industry Co Ltd 23.07 23,053 46.42 37.51 28.13 5.54 0.22 Computers

002439 CH Equity 启明星辰 Venustech Group Inc 22.88 19,881 72.07 57.63 41.60 9.91 0.11 Computers

300287 CH Equity 飞利信 Beijing Philisense Technology Co Ltd 13.37 19,190 43.07 31.83 22.28 3.53 0.21 Computers

002373 CH Equity 千方科技 China TransInfo Technology Co Ltd 16.30 18,001 60.90 48.80 39.56 5.75 0.31 Computers

300085 CH Equity 银之杰 Shenzhen Infogem Technologies Co Ltd 26.12 17,866 209.31 141.19 102.43 19.05 0.09 Computers

000997 CH Equity 新大陆 Fujian Newland Computer Co Ltd 18.63 17,482 40.14 39.47 30.64 7.59 0.43 Computers

000066 CH Equity 长城电脑 China Greatwall Computer Shenzhen Co Ltd 13.14 17,392 141.47 70.27 44.39 6.53 n.a. Computers

002281 CH Equity 光迅科技 Accelink Technologies Co Ltd 81.37 17,066 61.49 53.50 38.53 6.16 0.61 Computers

300297 CH Equity 蓝盾股份 Bluedon Information Security Technology Co Ltd 14.20 16,691 72.40 n.a. n.a. 4.90 0.02 Computers

000748 CH Equity 长城信息 GreatWall Information Industry Co Ltd 20.31 16,549 103.72 119.47 84.63 3.95 0.25 Computers

002414 CH Equity 高德红外 Wuhan Guide Infrared Co Ltd 25.84 16,131 235.95 161.50 88.19 5.16 0.06 Computers

000021 CH Equity 深科技 Shenzhen Kaifa Technology Co Ltd 10.94 16,096 46.81 40.52 30.39 3.00 0.46 Computers

002642 CH Equity 荣之联 United Electronics Co Ltd 23.79 15,125 76.68 53.70 42.63 4.17 0.14 Computers

300202 CH Equity 聚龙股份 Julong Co Ltd 26.80 14,727 51.98 31.68 25.12 8.86 0.30 Computers

300369 CH Equity 绿盟科技 NSFOCUS Information Technology Co Ltd 40.20 14,665 69.46 55.52 42.41 8.55 0.27 Computers

002368 CH Equity 太极股份 Taiji Computer Corp Ltd 33.33 13,852 67.58 51.28 37.03 6.39 0.45 Computers

002421 CH Equity 达实智能 Shenzhen Das Intellitech Co Ltd 7.15 13,779 60.34 50.00 33.57 5.10 0.23 Computers

300386 CH Equity 飞天诚信 Feitian Technologies Co Ltd 30.15 12,604 81.40 59.12 52.89 8.39 0.40 Computers

300170 CH Equity 汉得信息 Hand Enterprise Solutions Co Ltd 13.85 11,945 49.49 43.28 34.28 5.61 0.22 Computers

300020 CH Equity 银江股份 Enjoyor Co Ltd 17.85 11,706 54.41 39.06 38.55 3.55 0.11 Computers

002577 CH Equity 雷柏科技 Shenzhen Rapoo Technology Co Ltd 35.16 9,963 n.a. 107.85 68.94 8.44 n.a. Computers

300045 CH Equity 华力创通 Hwa Create Co Ltd 15.68 8,704 270.27 88.59 58.07 9.45 n.a. Computers

002376 CH Equity 新北洋 Shandong New Beiyang Information Technology Co Ltd 13.64 8,614 47.49 n.a. n.a. 3.72 1.10 Computers

000532 CH Equity 力合股份 Leaguer Stock Co Ltd 24.09 8,304 194.97 240.90 172.07 11.87 0.12 Computers

002649 CH Equity 博彦科技 Beyondsoft Corp 44.05 7,788 43.60 n.a. 32.63 4.24 0.50 Computers

300231 CH Equity 银信科技 Beijing Trust&Far Technology Co Ltd 21.23 7,271 63.70 57.38 40.83 12.88 0.46 Computers

002178 CH Equity 延华智能 Shanghai Yanhua Smartech Group Co Ltd 9.79 7,121 81.99 57.59 44.50 6.19 0.61 Computers

000920 CH Equity 南方汇通 South Huiton Co Ltd 16.60 7,005 63.45 48.40 39.06 7.17 0.18 Computers

300177 CH Equity 中海达 Guangzhou Hi-Target Navigation Tech Co Ltd 14.77 6,453 767.99 140.67 77.74 4.14 0.07 Computers

002177 CH Equity 御银股份 Guangzhou KingTeller Technology Co Ltd 8.28 6,303 164.14 n.a. n.a. 3.74 n.a. Computers

300245 CH Equity 天玑科技 Shanghai DragonNet Technology Co Ltd 21.95 6,042 100.37 99.77 73.17 7.49 0.16 Computers

300150 CH Equity 世纪瑞尔 Beijing Century Real Technology Co Ltd 9.97 5,384 99.14 38.79 31.16 3.74 1.00 Computers

000587 CH Equity 金洲慈航 Jinzhou Cihang Group Co Ltd 16.57 17,595 18.91 16.09 13.47 2.13 n.a. Distribution/Wholesale

002269 CH Equity 美邦服饰 Shanghai Metersbonwe Fashion & Accessories Co Ltd 4.72 11,923 n.a. 118.00 74.92 4.03 n.a. Distribution/Wholesale

000096 CH Equity 广聚能源 Shenzhen Guangju Energy Co Ltd 14.83 7,830 186.17 n.a. n.a. 3.74 0.13 Distribution/Wholesale

002091 CH Equity 江苏国泰 Jiangsu Guotai International Group Guomao Co Ltd 14.12 7,711 25.77 25.67 21.89 4.22 2.36 Distribution/Wholesale

000701 CH Equity 厦门信达 Xiamen Xindeco Co Ltd 16.77 6,819 42.20 31.06 20.45 2.15 0.33 Distribution/Wholesale

000151 CH Equity 中成股份 China National Complete Plant Import & Export Corp Ltd 19.29 5,709 45.86 n.a. n.a. 5.85 2.07 Distribution/Wholesale

000415 CH Equity 渤海金控 Bohai Financial Investment Holding Co Ltd n.a. n.a. n.a. 20.34 15.51 n.a. n.a. Diversified Finan Serv

000563 CH Equity 陕国投Ａ Shaanxi International Trust Co Ltd n.a. n.a. n.a. 43.24 34.47 n.a. 0.20 Diversified Finan Serv

002736 CH Equity 国信证券 Guosen Securities Co Ltd 17.97 147,354 10.57 18.86 16.19 3.29 3.34 Diversified Finan Serv

000776 CH Equity 广发证券 GF Securities Co Ltd 19.76 144,185 16.73 17.95 14.64 1.98 4.05 Diversified Finan Serv

000166 CH Equity 申万宏源 Shenwan Hongyuan Group Co Ltd 6.96 139,594 11.46 18.08 14.90 2.78 1.60 Diversified Finan Serv

002673 CH Equity 西部证券 Western Securities Co Ltd 24.85 69,470 59.27 56.74 44.77 5.65 0.89 Diversified Finan Serv

000783 CH Equity 长江证券 Changjiang Securities Co Ltd 12.16 67,238 28.62 27.57 21.99 2.67 2.88 Diversified Finan Serv

000728 CH Equity 国元证券 Guoyuan Securities Co Ltd 23.18 45,528 30.11 31.75 24.15 2.24 0.65 Diversified Finan Serv

002500 CH Equity 山西证券 Shanxi Securities Co Ltd 14.25 40,309 73.38 53.98 43.45 3.33 1.40 Diversified Finan Serv

000750 CH Equity 国海证券 Sealand Securities Co Ltd 7.79 32,839 24.25 29.07 25.13 2.38 0.86 Diversified Finan Serv

000686 CH Equity 东北证券 Northeast Securities Co Ltd 13.94 32,626 19.08 18.97 10.25 2.10 1.43 Diversified Finan Serv

9

Figure 2d: Eligible stocks for SZ-HK Connect (northbound)



(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

000531 CH Equity 穗恒运Ａ Guangzhou Hengyun Enterprises Holdings Ltd n.a. n.a. n.a. 12.27 10.24 n.a. 1.31 Electric

000027 CH Equity 深圳能源 Shenzhen Energy Group Co Ltd 7.34 29,099 18.90 14.68 13.35 1.36 2.72 Electric

000539 CH Equity 粤电力Ａ Guangdong Electric Power Development Co Ltd 5.62 27,630 14.86 13.07 11.96 1.23 4.09 Electric

000690 CH Equity 宝新能源 Guangdong Baolihua New Energy Stock Co Ltd 8.71 18,952 24.52 25.62 20.26 2.33 2.30 Electric

000600 CH Equity 建投能源 Jointo Energy Investment Co Ltd Hebei 9.66 17,307 8.94 8.47 7.94 1.52 4.66 Electric

000543 CH Equity 皖能电力 An Hui Wenergy Co Ltd 8.29 14,842 15.13 15.35 12.95 1.62 3.62 Electric

002266 CH Equity 浙富控股 Zhefu Holding Group Co Ltd 6.24 12,347 174.31 148.57 56.73 4.21 0.16 Electric

002479 CH Equity 富春环保 Zhejiang Fuchunjiang Environmental Thermoelectric Co Ltd 15.00 11,945 55.80 44.12 31.91 4.28 1.00 Electric

000601 CH Equity 韶能股份 Guangdong Shaoneng Group Co Ltd 9.92 10,719 21.47 21.06 18.37 2.52 1.51 Electric

000875 CH Equity 吉电股份 Jilin Power Share Co Ltd 6.35 9,275 75.43 57.73 35.28 2.37 n.a. Electric

000767 CH Equity 漳泽电力 Shanxi Zhangze Electric Power Co Ltd 3.94 8,880 n.a. n.a. n.a. 1.53 n.a. Electric

000958 CH Equity 东方能源 Shijiazhuang Dongfang Energy Co Ltd 15.57 8,581 16.05 23.48 19.63 3.29 n.a. Electric

000966 CH Equity 长源电力 Guodian Changyuan Electric Power Co Ltd 6.45 7,148 10.12 n.a. n.a. 1.98 2.02 Electric

000722 CH Equity 湖南发展 Hunan Development Group Co Ltd 14.14 6,563 42.76 42.21 43.51 2.42 n.a. Electric

000301 CH Equity 东方市场 Jiangsu Wujiang China Eastern Silk Market Co Ltd 5.21 6,347 35.77 n.a. n.a. 1.91 0.96 Electric

000720 CH Equity 新能泰山 Shandong Xinneng Taishan Power Generation Co Ltd 7.05 6,087 n.a. n.a. n.a. 6.77 n.a. Electric

002745 CH Equity 木林森 MLS Co Ltd n.a. n.a. n.a. 39.79 26.83 n.a. 0.33 Electrical Compo&Equip

002202 CH Equity 金风科技 Xinjiang Goldwind Science & Technology Co Ltd 18.49 46,862 17.55 15.49 13.81 2.64 2.60 Electrical Compo&Equip

002249 CH Equity 大洋电机 Zhongshan Broad Ocean Motor Co Ltd 9.68 22,900 49.72 40.33 30.83 2.73 0.98 Electrical Compo&Equip

002179 CH Equity 中航光电 AVIC Jonhon OptronicTechnology Co Ltd 37.52 22,606 31.91 29.92 22.73 5.75 0.27 Electrical Compo&Equip

002358 CH Equity 森源电气 Henan Senyuan Electric Co Ltd 22.99 21,375 70.36 60.50 45.71 4.65 0.35 Electrical Compo&Equip

300001 CH Equity 特锐德 Qingdao TGOOD Electric Co Ltd 20.66 20,610 130.87 82.64 59.54 7.97 n.a. Electrical Compo&Equip

002491 CH Equity 通鼎互联 Tongding Interconnection Information Co Ltd 16.44 19,594 40.34 35.35 21.49 6.95 0.12 Electrical Compo&Equip

300207 CH Equity 欣旺达 Sunwoda Electronic Co Ltd 13.86 17,876 43.44 36.47 23.77 8.52 0.22 Electrical Compo&Equip

000400 CH Equity 许继电气 XJ Electric Co Ltd 16.78 16,920 21.14 19.79 14.14 2.63 0.60 Electrical Compo&Equip

300274 CH Equity 阳光电源 Sungrow Power Supply Co Ltd 11.73 16,502 31.24 22.01 16.50 2.91 0.47 Electrical Compo&Equip

002276 CH Equity 万马股份 Zhejiang Wanma Co Ltd 16.98 15,947 64.58 67.92 56.60 5.35 0.59 Electrical Compo&Equip

002519 CH Equity 银河电子 Jiangsu Yinhe Electronics Co Ltd 23.58 15,857 44.57 39.63 29.18 4.82 1.06 Electrical Compo&Equip

000727 CH Equity 华东科技 Nanjing Huadong Electronics Information & Technology Co Ltd 3.37 15,265 n.a. 337.00 29.30 1.43 n.a. Electrical Compo&Equip

002498 CH Equity 汉缆股份 Qingdao Hanhe Cable Co Ltd 4.58 15,237 34.92 n.a. n.a. 3.51 0.76 Electrical Compo&Equip

300252 CH Equity 金信诺 Kingsignal Technology Co Ltd 33.20 14,757 70.57 55.80 37.30 14.16 0.21 Electrical Compo&Equip

002364 CH Equity 中恒电气 Hangzhou Zhongheng Electric Co Ltd 26.13 14,726 79.18 59.93 43.62 6.36 0.11 Electrical Compo&Equip

002371 CH Equity 七星电子 Beijing Sevenstar Electronics Co Ltd 31.66 14,500 286.13 138.86 93.12 4.61 0.09 Electrical Compo&Equip

300032 CH Equity 金龙机电 Jinlong Machinery & Electronics Co Ltd 17.30 14,083 79.99 53.23 50.14 3.00 0.58 Electrical Compo&Equip

002123 CH Equity 梦网荣信 Montnets Rongxin Technology Group Co Ltd 16.30 14,044 90.68 35.75 25.96 2.74 n.a. Electrical Compo&Equip

300014 CH Equity 亿纬锂能 Eve Energy Co Ltd 32.43 13,851 63.22 45.42 29.38 7.54 0.23 Electrical Compo&Equip

002335 CH Equity 科华恒盛 Xiamen Kehua Hengsheng Co Ltd 46.35 12,549 64.06 42.45 26.37 4.26 0.65 Electrical Compo&Equip

002168 CH Equity 深圳惠程 Shenzhen Hifuture Electric Co Ltd 15.11 12,464 505.35 n.a. n.a. 9.51 n.a. Electrical Compo&Equip

300101 CH Equity 振芯科技 Chengdu CORPRO Technology Co Ltd 22.26 12,377 150.63 92.75 62.70 14.39 0.22 Electrical Compo&Equip

000541 CH Equity 佛山照明 Foshan Electrical and Lighting Co Ltd 10.33 11,774 50.54 32.28 26.49 2.61 0.12 Electrical Compo&Equip

002622 CH Equity 融钰集团 Rongyu Group Co Ltd 13.81 11,600 179.11 53.12 46.03 9.82 n.a. Electrical Compo&Equip

300011 CH Equity 鼎汉技术 Beijing Dinghan Technology Co Ltd 21.90 11,598 64.19 44.88 32.49 5.47 0.27 Electrical Compo&Equip

300351 CH Equity 永贵电器 Zhejiang Yonggui Electric Equipment Co Ltd 27.77 10,681 68.14 49.15 34.16 4.08 0.22 Electrical Compo&Equip

002298 CH Equity 中电鑫龙 Anhui Sinonet & Xonglong Science & Technology Co Ltd 15.06 10,602 63.69 38.91 34.23 2.58 0.21 Electrical Compo&Equip

002664 CH Equity 信质电机 Xinzhi Motor Co Ltd 26.29 10,517 45.27 41.08 32.18 6.40 0.19 Electrical Compo&Equip

002130 CH Equity 沃尔核材 Shenzhen Woer Heat-Shrinkable Material Co Ltd 16.17 10,126 33.20 n.a. n.a. 5.39 0.68 Electrical Compo&Equip

002638 CH Equity 勤上光电 Dongguan Kingsun Optoelectronic Co Ltd 10.55 9,882 190.50 83.07 56.42 4.33 n.a. Electrical Compo&Equip

002518 CH Equity 科士达 Shenzhen Kstar Science And Technology Co Ltd 22.15 9,864 35.13 32.43 25.76 5.31 0.75 Electrical Compo&Equip

002309 CH Equity 中利科技 Zhongli Science & Technology Group Co Ltd 15.04 9,647 15.20 16.44 11.70 1.78 0.66 Electrical Compo&Equip

002028 CH Equity 思源电气 Sieyuan Electric Co Ltd 12.40 9,368 23.98 21.49 17.64 2.31 1.34 Electrical Compo&Equip

000049 CH Equity 德赛电池 Shenzhen Desay Battery Technology Co 43.15 8,856 46.47 38.87 31.16 8.57 0.35 Electrical Compo&Equip

002471 CH Equity 中超控股 Jiangsu Zhongchao Holding Co Ltd 6.54 8,293 70.46 n.a. n.a. 4.63 0.08 Electrical Compo&Equip

300128 CH Equity 锦富新材 Suzhou Jinfu New Material Co Ltd 16.89 8,098 482.64 70.38 67.56 3.65 0.06 Electrical Compo&Equip

002441 CH Equity 众业达 ZhongYeDa Electric Co Ltd 14.20 7,727 52.17 28.98 22.90 2.26 0.77 Electrical Compo&Equip

000533 CH Equity 万家乐 Guangdong Macro Co Ltd 11.08 7,654 271.78 n.a. n.a. 5.52 n.a. Electrical Compo&Equip

002339 CH Equity 积成电子 Integrated Electronic Systems Lab Co Ltd 19.03 7,210 47.22 41.10 32.04 4.71 0.32 Electrical Compo&Equip

002449 CH Equity 国星光电 Foshan Nationstar Optoelectronics Co Ltd 14.42 6,860 40.76 30.04 20.90 2.44 1.25 Electrical Compo&Equip

002192 CH Equity 融捷股份 Youngy Co Ltd 26.20 6,803 328.70 53.47 26.87 9.28 n.a. Electrical Compo&Equip

300303 CH Equity 聚飞光电 Shenzhen Jufei Optoelectronics Co Ltd 9.62 6,676 57.17 8.99 7.23 3.73 0.52 Electrical Compo&Equip

300111 CH Equity 向日葵 Zhejiang Sunflower Light Energy Science & Technology LLC 5.72 6,405 58.63 n.a. n.a. 4.87 n.a. Electrical Compo&Equip

000010 CH Equity 美丽生态 Shenzhen Ecobeauty Co Ltd 7.80 6,395 110.83 39.00 28.89 2.91 n.a. Electrical Compo&Equip

000922 CH Equity 佳电股份 Harbin Electric Corp Jiamusi Electric Machine Co Ltd 11.76 6,394 n.a. n.a. n.a. 4.01 n.a. Electrical Compo&Equip

002334 CH Equity 英威腾 Shenzhen Invt Electric Co Ltd 8.45 6,331 58.98 43.33 33.80 3.73 0.59 Electrical Compo&Equip

000585 CH Equity 东北电气 Northeast Electric Development Co Ltd 7.97 5,581 n.a. n.a. n.a. 25.18 n.a. Electrical Compo&Equip

000050 CH Equity 深天马Ａ Tianma Microelectronics Co Ltd n.a. n.a. n.a. 38.80 29.09 n.a. 0.32 Electronics

000829 CH Equity 天音控股 Telling Telecommunication Holding Co Ltd n.a. n.a. n.a. 36.62 25.81 n.a. n.a. Electronics

002025 CH Equity 航天电器 Guizhou Space Appliance Co Ltd n.a. n.a. n.a. 40.19 111.01 n.a. 0.71 Electronics

002129 CH Equity 中环股份 Tianjin Zhonghuan Semiconductor Co Ltd n.a. n.a. n.a. 48.76 31.28 n.a. 0.24 Electronics

300088 CH Equity 长信科技 Wuhu Token Science Co Ltd n.a. n.a. n.a. 50.16 37.62 n.a. 0.64 Electronics

300353 CH Equity 东土科技 Kyland Technology Co Ltd n.a. n.a. n.a. 67.97 51.98 n.a. 0.05 Electronics

002415 CH Equity 海康威视 Hangzhou Hikvision Digital Technology Co Ltd 25.40 155,009 22.08 20.26 15.96 7.15 1.84 Electronics

000938 CH Equity 紫光股份 Tsinghua Unisplendour Co Ltd 63.16 65,832 69.76 52.63 41.42 2.76 0.03 Electronics

000413 CH Equity 东旭光电 Dongxu Optoelectronic Technology Co Ltd 13.13 63,038 37.43 39.79 29.84 2.98 0.53 Electronics

002475 CH Equity 立讯精密 Luxshare Precision Industry Co Ltd 20.31 43,058 33.95 32.81 22.82 4.00 0.30 Electronics

002241 CH Equity 歌尔股份 GoerTek Inc 28.07 42,855 29.82 25.63 20.04 4.17 0.36 Electronics

300124 CH Equity 汇川技术 Shenzhen Inovance Technology Co Ltd 20.95 33,605 41.54 34.34 28.70 7.58 1.19 Electronics

002180 CH Equity 艾派克 Apex Technology Co Ltd 30.00 30,361 85.24 81.74 40.11 14.47 n.a. Electronics

300182 CH Equity 捷成股份 Beijing Jetsen Technology Co Ltd 11.30 28,956 24.99 28.25 18.23 3.11 0.53 Electronics

002008 CH Equity 大族激光 Han's Laser Technology Industry Group Co Ltd 23.24 24,782 32.09 29.23 22.54 4.79 0.86 Electronics

002217 CH Equity 合力泰 Holitech Technology Co Ltd 17.14 24,381 38.94 30.07 20.28 4.01 0.09 Electronics

300115 CH Equity 长盈精密 Shenzhen Everwin Precision Technology Co Ltd 25.45 22,925 34.27 31.61 22.95 6.06 0.74 Electronics

000062 CH Equity 深圳华强 Shenzhen Huaqiang Industry Co Ltd 30.69 22,137 51.66 49.50 40.92 5.82 0.33 Electronics

002049 CH Equity 紫光国芯 Unigroup Guoxin Co Ltd 35.34 21,445 61.67 51.44 36.81 6.85 0.16 Electronics

002512 CH Equity 达华智能 Tatwah Smartech Co Ltd 18.69 20,473 131.27 n.a. n.a. 7.60 n.a. Electronics

300376 CH Equity 易事特 Guangdong East Power Co Ltd 35.00 20,159 49.15 51.24 40.84 5.82 0.26 Electronics

300367 CH Equity 东方网力 Netposa Technologies Ltd 23.45 19,974 63.46 47.96 36.02 9.26 0.21 Electronics

000607 CH Equity 华媒控股 Zhejiang Huamei Holding Co Ltd 16.80 17,097 59.19 64.62 56.00 10.24 n.a. Electronics

300098 CH Equity 高新兴 Gosuncn Technology Group Co Ltd 15.84 17,024 57.19 57.18 39.90 4.69 0.06 Electronics

000988 CH Equity 华工科技 Huagong Tech Co Ltd 16.73 14,908 70.38 66.39 51.64 4.81 0.21 Electronics

002273 CH Equity 水晶光电 Zhejiang Crystal-Optech Co Ltd 22.53 14,755 72.58 51.20 38.58 5.25 0.30 Electronics

10

Figure 2e: Eligible stocks for SZ-HK Connect (northbound)



(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

002268 CH Equity 卫士通 Westone Information Industry Inc 33.17 14,347 96.28 76.78 57.99 10.77 0.30 Electronics

300368 CH Equity 汇金股份 Hebei Huijin Electromechanical Co Ltd 26.24 14,273 263.47 n.a. n.a. 13.85 0.08 Electronics

002635 CH Equity 安洁科技 Suzhou Anjie Technology Co Ltd 36.40 14,154 35.96 35.17 25.82 5.69 0.82 Electronics

002312 CH Equity 三泰控股 Chengdu Santai Holding Group Co Ltd 10.27 14,153 n.a. 293.43 85.58 3.44 0.32 Electronics

002138 CH Equity 顺络电子 Shenzhen Sunlord Electronics Co Ltd 18.01 13,606 39.13 36.02 27.92 5.20 1.11 Electronics

002636 CH Equity 金安国纪 Goldenmax International Technology Ltd 18.00 13,104 78.99 n.a. n.a. 8.47 n.a. Electronics

002055 CH Equity 得润电子 Shenzhen Deren Electronic Co Ltd 27.25 12,276 184.91 109.44 66.63 6.98 n.a. Electronics

002446 CH Equity 盛路通信 Guangdong Shenglu Telecommunication Tech Co Ltd 27.00 12,104 56.76 59.08 34.05 4.91 0.15 Electronics

300078 CH Equity 思创医惠 Hangzhou Century Co Ltd 28.61 11,980 62.03 53.38 40.70 8.76 0.17 Electronics

002436 CH Equity 兴森科技 Shenzhen Fastprint Circuit Tech Co Ltd 7.93 11,799 71.42 52.87 36.05 5.12 0.01 Electronics

300188 CH Equity 美亚柏科 Xiamen Meiya Pico Information Co Ltd 24.16 11,772 76.88 53.22 40.27 6.90 0.12 Electronics

300083 CH Equity 劲胜精密 JANUS Dongguan Precision Components Co Ltd 8.12 11,559 n.a. 108.27 35.30 2.28 n.a. Electronics

002609 CH Equity 捷顺科技 Shenzhen Jieshun Science And Technology Industry Co Ltd 17.46 11,470 60.21 56.87 42.79 10.19 0.57 Electronics

300077 CH Equity 国民技术 Nationz Technologies Inc 19.54 11,014 169.75 71.05 49.72 3.81 0.26 Electronics

300131 CH Equity 英唐智控 Shenzhen Yitoa Intelligent Control Co Ltd 9.93 10,620 67.80 52.26 48.44 5.85 0.25 Electronics

002658 CH Equity 雪迪龙 Beijing SDL Technology Co Ltd 16.98 10,271 55.43 37.07 28.78 6.36 0.52 Electronics

002618 CH Equity 丹邦科技 Shenzhen Danbond Technology Co Ltd 26.66 9,738 256.74 n.a. n.a. 5.86 0.07 Electronics

002197 CH Equity 证通电子 Shenzhen Zhengtong Electronics Co Ltd 18.09 9,401 92.00 60.30 48.89 3.49 0.33 Electronics

002527 CH Equity 新时达 Shanghai STEP Electric Corp 15.05 9,334 47.19 40.13 33.82 3.45 0.70 Electronics

000636 CH Equity 风华高科 Guangdong Fenghua Advanced Technology Holding Co Ltd 10.28 9,203 76.38 51.40 42.83 2.04 0.29 Electronics

000068 CH Equity 华控赛格 Shenzhen Huakong SEG Co Ltd 9.11 9,171 n.a. 69.02 25.88 15.73 n.a. Electronics

002484 CH Equity 江海股份 Nantong Jianghai Capacitor Co Ltd 14.48 9,080 59.06 21.61 15.24 3.10 0.86 Electronics

300065 CH Equity 海兰信 Beijing Highlander Digital Technology Co Ltd 37.44 9,044 122.61 76.41 53.64 7.31 0.08 Electronics

002106 CH Equity 莱宝高科 Shenzhen Laibao Hi-tech Co Ltd 12.77 9,013 n.a. 49.12 37.56 2.53 n.a. Electronics

000733 CH Equity 振华科技 China Zhenhua Group Science & Technology Co Ltd 19.12 8,974 42.66 39.02 21.48 2.36 0.16 Electronics

002322 CH Equity 理工环科 Ningbo Ligong Environment And Energy Technology Co Ltd 21.85 8,769 57.32 44.59 34.96 3.03 0.46 Electronics

002137 CH Equity 麦达数字 Shen Zhen Mindata Holding Co Ltd 15.18 8,749 54.78 51.46 69.00 5.43 n.a. Electronics

002463 CH Equity 沪电股份 WUS Printed Circuit Kunshan Co Ltd 5.20 8,706 94.90 98.11 37.14 2.65 n.a. Electronics

002528 CH Equity 英飞拓 Shenzhen Infinova Ltd 8.05 8,394 190.42 n.a. n.a. 2.66 n.a. Electronics

002546 CH Equity 新联电子 Nanjing Xinlian Electronics Co Ltd 9.92 8,274 56.14 47.24 34.21 3.05 1.08 Electronics

300248 CH Equity 新开普 Newcapec Electronics Co Ltd 26.14 8,146 115.81 90.14 62.69 8.64 0.19 Electronics

000561 CH Equity 烽火电子 Shaanxi Fenghuo Electronics Co Ltd 13.21 7,871 55.41 66.05 55.04 7.20 n.a. Electronics

000058 CH Equity 深赛格 Shenzhen SEG Co Ltd 11.76 7,461 124.16 98.00 78.40 6.18 0.26 Electronics

300155 CH Equity 安居宝 Guangdong Anjubao Digital Technology Co Ltd 13.26 7,205 489.17 189.43 139.58 6.36 0.15 Electronics

300333 CH Equity 兆日科技 Sinosun Technology Co Ltd 20.05 6,737 220.36 n.a. n.a. 7.89 0.22 Electronics

002338 CH Equity 奥普光电 Changchun UP Optotech Co Ltd 54.10 6,492 113.82 87.26 54.10 8.62 0.28 Electronics

300007 CH Equity 汉威电子 Henan Hanwei Electronics Co Ltd 22.15 6,490 68.18 50.92 37.99 5.14 0.09 Electronics

002655 CH Equity 共达电声 Shandong Gettop Acoustic Co Ltd 16.30 5,868 289.83 39.76 29.74 9.13 0.07 Electronics

002045 CH Equity 国光电器 Guoguang Electric Co Ltd 13.09 5,457 103.27 n.a. n.a. 4.16 0.61 Electronics

002189 CH Equity 利达光电 Lida Optical & Electronic Co Ltd 24.44 4,869 293.06 n.a. n.a. 9.14 0.07 Electronics

000591 CH Equity 太阳能 CECEP Solar Energy Co Ltd 14.84 20,284 14.01 21.20 n.a. 1.83 n.a. Energy-Alternate Sources

002610 CH Equity 爱康科技 Jiangsu Akcome Science & Technology Co Ltd 3.67 16,481 119.92 44.76 34.62 2.68 0.68 Energy-Alternate Sources

002531 CH Equity 天顺风能 Titan Wind Energy Suzhou Co Ltd 7.47 13,289 27.16 25.15 17.74 4.32 0.37 Energy-Alternate Sources

002256 CH Equity 兆新股份 Shenzhen Sunrise New Energy Co Ltd 6.76 12,740 104.50 34.67 19.88 5.80 n.a. Energy-Alternate Sources

300118 CH Equity 东方日升 Risen Energy Co Ltd 16.09 10,854 16.24 18.35 14.37 2.86 0.44 Energy-Alternate Sources

300332 CH Equity 天壕环境 Top Resource Conservation & Environment Corp 10.08 7,806 54.87 37.75 25.65 3.31 0.40 Energy-Alternate Sources

000961 CH Equity 中南建设 Jiangsu Zhongnan Construction Group Co Ltd 9.71 36,022 91.82 34.07 29.16 2.55 0.16 Engineering&Construction

002051 CH Equity 中工国际 China CAMC Engineering Co Ltd 24.23 22,480 18.95 17.52 15.25 3.43 1.03 Engineering&Construction

000975 CH Equity 银泰资源 Yintai Resources Co Ltd 15.81 17,100 69.72 55.47 37.64 4.59 1.27 Engineering&Construction

002542 CH Equity 中化岩土 China Zhonghua Geotechnical Engineering Co Ltd 8.26 14,434 59.49 44.65 32.65 5.31 0.24 Engineering&Construction

300215 CH Equity 电科院 Suzhou Electrical Apparatus Science Academy Co Ltd 16.72 12,679 171.76 n.a. n.a. 6.76 0.09 Engineering&Construction

000090 CH Equity 天健集团 Shenzhen Tagen Group Co Ltd 10.11 12,110 33.05 19.82 15.02 2.01 1.41 Engineering&Construction

002717 CH Equity 岭南园林 LingNan Landscape Co Ltd 28.92 11,831 48.69 44.56 29.78 4.92 0.12 Engineering&Construction

002325 CH Equity 洪涛股份 Shenzhen Hongtao Decoration Co Ltd 9.26 11,129 35.61 25.72 19.66 3.13 0.34 Engineering&Construction

000928 CH Equity 中钢国际 Sinosteel Engineering & Technology Co Ltd 17.27 11,097 23.55 21.51 17.50 3.46 n.a. Engineering&Construction

000065 CH Equity 北方国际 Norinco International Cooperation Ltd 26.45 10,886 39.32 32.14 23.10 5.23 0.20 Engineering&Construction

300355 CH Equity 蒙草生态 Inner Mongolia M-Grass Ecology And Enviroment Group Co Ltd 10.38 10,408 39.52 43.25 30.80 3.83 0.33 Engineering&Construction

000498 CH Equity 山东路桥 Shandong Hi-Speed Road & Bridge Co Ltd 8.14 9,118 21.72 22.00 18.09 2.78 n.a. Engineering&Construction

002480 CH Equity 新筑股份 Chengdu Xinzhu Road&Bridge Machinery Co Ltd 11.80 7,615 n.a. 1,180 49.17 3.29 n.a. Engineering&Construction

002586 CH Equity 围海股份 Zhejiang Reclaim Construction Group Co Ltd 10.13 7,376 103.17 60.30 32.16 4.63 0.49 Engineering&Construction

002140 CH Equity 东华科技 East China Engineering Science and Technology Co Ltd 15.92 7,101 47.35 58.96 63.68 3.48 0.31 Engineering&Construction

002135 CH Equity 东南网架 Zhejiang Southeast Space Frame Co Ltd 8.08 6,905 225.82 n.a. n.a. 2.85 0.07 Engineering&Construction

300027 CH Equity 华谊兄弟 Huayi Brothers Media Corp n.a. n.a. n.a. 33.19 27.88 n.a. 0.40 Entertainment

002739 CH Equity 万达院线 Wanda Cinema Line Co Ltd 66.53 78,126 56.62 49.72 35.81 7.99 0.30 Entertainment

000069 CH Equity 华侨城Ａ Shenzhen Overseas Chinese Town Co Ltd 7.86 64,497 12.11 11.29 9.99 1.62 0.89 Entertainment

002624 CH Equity 完美世界 Perfect World Co Ltd/China 33.50 44,039 30.82 39.98 31.90 6.86 0.08 Entertainment

300144 CH Equity 宋城演艺 Songcheng Performance Development Co Ltd 22.98 33,381 42.42 36.08 27.99 5.61 0.30 Entertainment

300251 CH Equity 光线传媒 Beijing Enlight Media Co Ltd 11.34 33,267 41.74 46.67 36.46 4.84 0.44 Entertainment

002143 CH Equity 印纪传媒 DMG Entertainment and Media Co Ltd 29.59 32,731 50.68 n.a. n.a. 17.00 0.24 Entertainment

300291 CH Equity 华录百纳 Beijing HualuBaina Film & TV Co Ltd 22.72 18,459 63.23 41.01 30.01 2.99 0.35 Entertainment

000673 CH Equity 当代东方 Contemporary Eastern Investment Co Ltd 13.49 10,702 59.35 50.91 38.00 4.72 n.a. Entertainment

300329 CH Equity 海伦钢琴 Hailun Piano Co Ltd 19.07 4,792 177.09 136.21 112.18 6.04 0.13 Entertainment

300070 CH Equity 碧水源 Beijing Originwater Technology Co Ltd 18.31 57,189 36.35 27.37 20.03 3.99 0.22 Environmental Control

002310 CH Equity 东方园林 Beijing Orient Landscape & Environment Co Ltd 14.52 38,875 38.67 28.25 20.17 5.46 0.17 Environmental Control

000826 CH Equity 启迪桑德 Tus-Sound Environmental Resources Co Ltd 32.98 28,175 27.22 25.41 20.95 4.08 0.45 Environmental Control

300156 CH Equity 神雾环保 Shenwu Environmental Technology Co Ltd 25.60 25,857 49.54 35.31 21.60 11.40 0.16 Environmental Control

002340 CH Equity 格林美 GEM Co Ltd 7.13 20,755 120.47 50.93 37.53 3.09 0.14 Environmental Control

300197 CH Equity 铁汉生态 Shenzhen Techand Ecology & Environment Co Ltd 12.67 19,254 42.22 35.49 24.46 3.94 0.48 Environmental Control

300055 CH Equity 万邦达 Beijing Water Business Doctor Co Ltd 18.16 15,712 56.36 54.53 41.27 2.90 0.08 Environmental Control

002672 CH Equity 东江环保 Dongjiang Environmental Co Ltd 19.13 15,586 45.26 31.31 31.11 5.66 0.42 Environmental Control

002431 CH Equity 棕榈股份 Palm Eco-Town Development Co Ltd 10.34 14,238 n.a. 68.03 49.24 3.35 n.a. Environmental Control

300203 CH Equity 聚光科技 Focused Photonics Hangzhou Inc 30.58 13,852 40.02 33.20 24.41 5.32 0.33 Environmental Control

300187 CH Equity 永清环保 Yonker Environmental Protection Co Ltd 13.91 9,021 79.32 54.34 40.20 6.43 0.07 Environmental Control

300262 CH Equity 巴安水务 Shanghai Safbon Water Service Co Ltd 17.64 7,884 47.19 43.02 30.95 3.92 n.a. Environmental Control

300066 CH Equity 三川智慧 Sanchuan Wisdom Technology Co Ltd 7.40 7,696 53.24 45.12 40.00 5.33 0.43 Environmental Control

300152 CH Equity 科融环境 Xuzhou Kerong Environmental Resources Co Ltd 8.14 5,802 n.a. 142.81 85.68 3.97 0.05 Environmental Control

300272 CH Equity 开能环保 Shanghai Canature Environmental Products Co Ltd 16.60 5,508 66.22 65.10 53.55 8.57 0.42 Environmental Control

11

Figure 2f: Eligible stocks for SZ-HK Connect (northbound)



(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

000895 CH Equity 双汇发展 Henan Shuanghui Investment & Development Co Ltd 22.71 74,933 16.98 16.49 14.85 5.74 3.96 Food

002714 CH Equity 牧原股份 Muyuan Foodstuff Co Ltd 25.12 25,968 12.35 12.21 12.31 5.09 0.70 Food

002299 CH Equity 圣农发展 Fujian Sunner Development Co Ltd 23.15 25,717 n.a. 28.94 14.47 4.49 n.a. Food

000061 CH Equity 农产品 Shenzhen Agricultural Products Co Ltd 13.44 22,807 121.19 336.00 298.67 4.59 0.37 Food

002568 CH Equity 百润股份 Shanghai Bairun Investment Holding Group Co Ltd 22.18 19,873 n.a. 146.89 49.73 22.28 n.a. Food

002477 CH Equity 雏鹰农牧 Chuying Agro-pastora Group Co Ltd 5.27 16,522 20.12 15.06 11.98 3.32 0.76 Food

002570 CH Equity 贝因美 Beingmate Baby & Child Food Co Ltd 12.55 12,833 n.a. n.a. 291.86 3.94 n.a. Food

002329 CH Equity 皇氏集团 Royal Group Co Ltd 15.15 12,690 52.11 41.28 26.91 4.66 n.a. Food

002481 CH Equity 双塔食品 YanTai Shuangta Food Co Ltd 7.99 10,094 73.90 53.27 41.40 3.80 0.13 Food

000893 CH Equity 东凌国际 Donlinks International Investment Co Ltd 12.48 9,446 21.35 n.a. n.a. 2.22 n.a. Food

002626 CH Equity 金达威 Xiamen Kingdomway Group Co 15.20 9,371 44.29 n.a. n.a. 4.57 0.33 Food

002447 CH Equity 壹桥股份 Dalian Yi Qiao Sea Cucumber Co Ltd 9.73 9,267 29.13 47.46 30.41 3.68 0.31 Food

002387 CH Equity 黑牛食品 Blackcow Food Co Ltd 19.23 9,028 n.a. n.a. 1,923 11.65 n.a. Food

002557 CH Equity 洽洽食品 Qiaqia Food Co Ltd 17.31 8,776 23.61 21.88 19.34 3.06 2.89 Food

002650 CH Equity 加加食品 Jiajia Food Group Co Ltd 7.28 8,387 52.61 47.58 38.93 4.35 0.55 Food

002216 CH Equity 三全食品 Sanquan Food Co Ltd 10.06 8,090 229.21 159.68 81.79 4.17 0.13 Food

002702 CH Equity 海欣食品 Haixin Foods Co Ltd 18.92 5,640 n.a. n.a. n.a. 7.38 n.a. Food

000576 CH Equity 广东甘化 Jiangmen Sugar Cane Chemical Factory Group Co Ltd/The n.a. n.a. n.a. n.a. n.a. n.a. n.a. Forest Products&Paper

000488 CH Equity 晨鸣纸业 Shandong Chenming Paper Holdings Ltd 11.00 17,850 12.65 10.91 9.95 1.10 2.73 Forest Products&Paper

002078 CH Equity 太阳纸业 Shandong Sun Paper Industry JSC Ltd 6.99 17,726 19.24 17.26 12.26 2.35 0.72 Forest Products&Paper

000815 CH Equity 美利云 MCC Meili Cloud Computing Industry Investment Co Ltd 22.42 15,588 22.66 n.a. n.a. 8.22 n.a. Forest Products&Paper

000592 CH Equity 平潭发展 Zhongfu Straits Pingtan Development Co Ltd 7.31 14,121 493.75 n.a. n.a. 4.47 n.a. Forest Products&Paper

002573 CH Equity 清新环境 Beijing SPC Environment Protection Tech Co Ltd 18.10 19,287 29.67 26.46 20.02 5.85 0.55 Gas

002444 CH Equity 巨星科技 Hang Zhou Great Star Industrial Co Ltd 18.30 19,677 37.29 33.03 27.94 3.66 0.55 Hand/Machine Tools

000410 CH Equity 沈阳机床 Shenyang Machine Tool Co Ltd 14.92 11,421 n.a. n.a. n.a. 9.04 n.a. Hand/Machine Tools

300273 CH Equity 和佳股份 Zhuhai Hokai Medical Instruments Co Ltd n.a. n.a. n.a. 68.93 50.35 n.a. 0.25 Healthcare-Products

300003 CH Equity 乐普医疗 Lepu Medical Technology Beijing Co Ltd 18.65 32,518 48.57 38.45 29.51 6.90 0.43 Healthcare-Products

002223 CH Equity 鱼跃医疗 Jiangsu Yuyue Medical Equipment & Supply Co Ltd 33.73 22,542 45.57 45.40 35.51 4.66 1.19 Healthcare-Products

300244 CH Equity 迪安诊断 Zhejiang Dian Diagnostics Co Ltd 36.26 19,980 72.18 72.96 52.70 9.78 0.15 Healthcare-Products

002030 CH Equity 达安基因 Da An Gene Co Ltd of Sun Yat-Sen University 26.61 19,290 178.60 n.a. n.a. 13.70 0.09 Healthcare-Products

002099 CH Equity 海翔药业 Zhejiang Hisoar Pharmaceutical Co Ltd 9.71 15,757 28.05 23.12 17.98 3.10 1.03 Healthcare-Products

000150 CH Equity 宜华健康 Yihua Healthcare Co Ltd 34.94 15,646 15.38 n.a. n.a. 5.96 n.a. Healthcare-Products

300463 CH Equity 迈克生物 Sichuan Maker Biotechnology Co Ltd 26.37 14,714 53.82 47.69 38.78 7.38 0.34 Healthcare-Products

300216 CH Equity 千山药机 Hunan China Sun Pharmaceutical Machinery Co Ltd 38.87 14,049 704.60 n.a. n.a. 13.96 0.08 Healthcare-Products

300406 CH Equity 九强生物 Beijing Strong Biotechnologies Inc 23.37 11,682 44.10 39.34 30.27 8.96 0.64 Healthcare-Products

300171 CH Equity 东富龙 Shanghai Tofflon Science & Technology Co Ltd 17.30 10,978 36.53 26.41 22.32 3.79 1.73 Healthcare-Products

002551 CH Equity 尚荣医疗 Shenzhen Glory Medical Co Ltd 22.65 10,058 65.43 50.33 32.83 5.56 n.a. Healthcare-Products

002432 CH Equity 九安医疗 Andon Health Co Ltd 17.53 7,587 n.a. n.a. n.a. 5.33 n.a. Healthcare-Products

300314 CH Equity 戴维医疗 Ningbo David Medical Device Co Ltd 24.98 7,194 127.31 n.a. n.a. 9.81 0.16 Healthcare-Products

300298 CH Equity 三诺生物 Sinocare Inc 21.25 7,190 52.31 75.89 54.49 5.71 1.30 Healthcare-Products

300289 CH Equity 利德曼 Beijing Leadman Biochemistry Co Ltd 13.93 5,904 46.73 55.72 49.75 4.80 0.43 Healthcare-Products

002252 CH Equity 上海莱士 Shanghai RAAS Blood Products Co Ltd 21.34 105,969 63.48 62.76 52.05 9.00 0.13 Healthcare-Services

300015 CH Equity 爱尔眼科 Aier Eye Hospital Group Co Ltd 33.41 33,650 77.70 58.61 41.76 12.52 0.88 Healthcare-Services

000009 CH Equity 中国宝安 China Baoan Group Co Ltd 10.36 22,267 65.15 n.a. n.a. 4.91 0.50 Holding Companies-Divers

002080 CH Equity 中材科技 Sinoma Science & Technology Co Ltd 18.20 14,684 29.58 28.75 19.89 1.83 0.80 Holding Companies-Divers

000652 CH Equity 泰达股份 Tianjin Teda Co Ltd 6.07 8,957 36.86 n.a. n.a. 2.71 0.16 Holding Companies-Divers

000043 CH Equity 中航地产 Avic Real Estate Holding Co Ltd 10.23 6,823 12.54 15.50 14.41 1.75 0.49 Holding Companies-Divers

002314 CH Equity 南山控股 Shenzhen New Nanshan Holding Group Co Ltd 9.91 18,606 23.82 39.64 33.03 3.32 1.90 Home Builders

000918 CH Equity 嘉凯城 China Calxon Group Co Ltd 9.62 17,356 n.a. n.a. n.a. 24.76 n.a. Home Builders

000863 CH Equity 三湘印象 Sanxiang Impression Co Ltd 9.05 12,516 16.06 22.63 17.24 1.31 1.11 Home Builders

000100 CH Equity TCL 集团 TCL Corp n.a. n.a. n.a. 18.00 14.43 n.a. 2.34 Home Furnishings

000333 CH Equity 美的集团 Midea Group Co Ltd 30.85 198,209 13.64 13.57 11.56 3.41 2.59 Home Furnishings

002508 CH Equity 老板电器 Hangzhou Robam Appliances Co Ltd 38.30 27,961 25.87 22.96 17.77 7.71 1.04 Home Furnishings

002572 CH Equity 索菲亚 Suofeiya Home Collection Co Ltd 54.71 25,260 41.01 37.63 27.79 7.02 0.91 Home Furnishings

000418 CH Equity 小天鹅Ａ Wuxi Little Swan Co Ltd 35.69 20,169 19.65 19.27 16.00 3.95 1.68 Home Furnishings

002429 CH Equity 兆驰股份 Shenzhen MTC Co Ltd 11.13 20,155 67.56 45.61 32.54 3.52 0.69 Home Furnishings

002681 CH Equity 奋达科技 Shenzhen Fenda Technology Co Ltd 14.01 17,472 55.29 45.19 35.92 6.30 0.36 Home Furnishings

000810 CH Equity 创维数字 Skyworth Digital Co Ltd 16.26 16,822 30.59 29.56 24.34 7.07 0.65 Home Furnishings

002489 CH Equity 浙江永强 Yotrio Group Co Ltd 7.72 16,797 57.56 22.06 18.83 5.00 0.39 Home Furnishings

300068 CH Equity 南都电源 Zhejiang Narada Power Source Co Ltd 20.49 16,070 45.44 41.06 29.27 2.80 n.a. Home Furnishings

002242 CH Equity 九阳股份 Joyoung Co Ltd 20.00 15,352 23.16 22.08 19.36 4.66 3.50 Home Furnishings

300269 CH Equity 联建光电 Shenzhen Liantronics Co Ltd 23.15 14,207 38.50 n.a. n.a. 2.73 0.86 Home Furnishings

002308 CH Equity 威创股份 Vtron Technologies Ltd 16.20 13,727 68.50 69.23 44.14 5.95 0.09 Home Furnishings

002668 CH Equity 奥马电器 Guangdong Homa Appliances Co Ltd 82.08 13,572 40.33 46.64 34.49 6.75 0.20 Home Furnishings

000921 CH Equity 海信科龙 Hisense Kelon Electrical Holdings Co Ltd 10.86 12,573 15.05 16.33 13.92 3.19 1.38 Home Furnishings

300079 CH Equity 数码视讯 Sumavision Technologies Co Ltd 8.37 11,532 50.74 n.a. n.a. 3.42 0.12 Home Furnishings

000801 CH Equity 四川九洲 Sichuan Jiuzhou Electric Co Ltd 11.22 11,476 63.90 46.75 37.03 5.12 0.45 Home Furnishings

000016 CH Equity 深康佳Ａ Konka Group Co Ltd 5.04 10,159 n.a. n.a. n.a. 4.41 n.a. Home Furnishings

000910 CH Equity 大亚圣象 Dare Power Dekor Home Co Ltd 18.59 9,867 21.99 21.67 17.88 3.83 0.27 Home Furnishings

002005 CH Equity 德豪润达 Elec-Tech International Co Ltd 6.19 8,644 n.a. 123.80 n.a. 1.57 n.a. Home Furnishings

300160 CH Equity 秀强股份 Jiangsu Xiuqiang Glasswork Co Ltd 13.38 7,998 81.91 65.91 45.67 6.70 0.23 Home Furnishings

002260 CH Equity 德奥通航 DEA General Aviation Holding Co Ltd 23.82 6,317 n.a. 643.78 286.99 18.49 n.a. Home Furnishings

300074 CH Equity 华平股份 Avcon Information Technology Co Ltd 10.86 5,821 114.27 n.a. n.a. 5.48 n.a. Home Furnishings

002047 CH Equity 宝鹰股份 Shenzhen Bauing Construction Holding Group Co Ltd 12.41 15,675 46.98 36.18 27.58 6.02 0.56 Household Products/Wares

002327 CH Equity 富安娜 Shenzhen Fuanna Bedding and Furnishing Co Ltd 9.30 7,921 19.45 19.10 17.22 3.11 1.08 Household Products/Wares

000523 CH Equity 广州浪奇 Lonkey Industrial Co Guangzhou 12.21 6,385 234.22 106.17 67.83 3.67 0.16 Household Products/Wares

002032 CH Equity 苏泊尔 Zhejiang Supor Cookware Co Ltd 36.42 23,009 23.09 21.17 17.84 5.48 1.54 Housewares

12

Figure 2g: Eligible stocks for SZ-HK Connect (northbound)



(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

002396 CH Equity 星网锐捷 Fujian Star-net Communication Co Ltd n.a. n.a. n.a. 33.22 26.80 n.a. 0.51 Internet

300059 CH Equity 东方财富 East Money Information Co Ltd 21.76 77,429 71.28 84.34 48.79 6.12 0.26 Internet

000503 CH Equity 海虹控股 Searainbow Holding Corp 57.93 52,069 1,490.24 n.a. n.a. 40.06 n.a. Internet

300017 CH Equity 网宿科技 Wangsu Science & Technology Co Ltd 59.77 47,415 37.83 35.92 24.19 6.89 0.33 Internet

300033 CH Equity 同花顺 Hithink RoyalFlush Information Network Co Ltd 78.67 42,293 35.43 38.12 31.56 17.25 0.94 Internet

300315 CH Equity 掌趣科技 Ourpalm Co Ltd 10.94 30,313 39.03 39.35 29.97 3.61 0.16 Internet

300383 CH Equity 光环新网 Beijing Sinnet Technology Co Ltd 31.82 23,011 81.07 61.67 40.59 3.89 0.06 Internet

300113 CH Equity 顺网科技 Hangzhou Shunwang Technology Co Ltd 32.07 21,986 43.63 41.92 32.07 9.40 0.33 Internet

002127 CH Equity 南极电商 NanJi E-Commerce Co Ltd 12.27 18,874 43.72 61.66 39.33 13.67 n.a. Internet

300359 CH Equity 全通教育 Qtone Education Group Guandong Ltd 27.19 17,232 158.37 51.30 32.37 8.82 0.09 Internet

300431 CH Equity 暴风集团 Baofeng Group Co Ltd 61.20 16,937 87.43 n.a. n.a. 26.25 n.a. Internet

300352 CH Equity 北信源 Beijing VRV Software Corp Ltd 22.22 12,886 156.46 143.35 103.35 13.45 0.11 Internet

002095 CH Equity 生意宝 Zhejiang NetSun Co Ltd 48.95 12,371 1,115.01 n.a. n.a. 15.04 n.a. Internet

002089 CH Equity 新海宜 Suzhou New Sea Union Telecom Technology Co Ltd 15.80 10,860 131.88 51.80 39.01 5.62 0.16 Internet

300413 CH Equity 快乐购 Happigo Home Shopping Co Ltd 25.22 10,113 100.88 123.02 100.88 6.41 0.25 Internet

300494 CH Equity 盛天网络 Hubei Century Network Technology Co Ltd 40.53 9,727 95.36 98.85 79.47 12.22 n.a. Internet

002751 CH Equity 易尚展示 Shenzhen ESUN Display Co Ltd 58.11 8,163 187.45 283.46 242.13 18.71 0.10 Internet

002315 CH Equity 焦点科技 Focus Technology Co Ltd 68.52 8,051 120.54 88.41 46.61 4.21 1.46 Internet

300226 CH Equity 上海钢联 Shanghai Ganglian E-Commerce Holdings Co Ltd 49.00 7,812 n.a. 133.51 79.93 15.98 n.a. Internet

300052 CH Equity 中青宝 Shenzhen ZQGAME Co Ltd 28.55 7,453 128.13 n.a. n.a. 7.42 0.07 Internet

300051 CH Equity 三五互联 Xiamen 35.com Technology Co Ltd 18.12 6,704 n.a. n.a. n.a. 7.04 n.a. Internet

000987 CH Equity 越秀金控 Guangzhou Yuexiu Financial Holdings Group Co Ltd n.a. n.a. n.a. 41.05 27.97 n.a. 0.92 Investment Companies

000898 CH Equity 鞍钢股份 Angang Steel Co Ltd 5.59 38,705 n.a. 34.51 31.94 0.91 n.a. Iron/Steel

000959 CH Equity 首钢股份 Beijing Shougang Co Ltd 6.80 35,968 n.a. 104.62 75.56 1.46 n.a. Iron/Steel

000709 CH Equity 河钢股份 Hesteel Co Ltd 3.32 35,254 35.27 30.18 31.92 0.80 0.90 Iron/Steel

000825 CH Equity 太钢不锈 Shanxi Taigang Stainless Steel Co Ltd 4.27 24,323 n.a. 26.69 23.46 1.10 n.a. Iron/Steel

000932 CH Equity 华菱钢铁 Hunan Valin Steel Co Ltd 5.97 18,003 n.a. n.a. 72.80 2.91 n.a. Iron/Steel

000761 CH Equity 本钢板材 Bengang Steel Plates Co Ltd 5.93 17,220 n.a. 31.21 32.94 1.49 n.a. Iron/Steel

000926 CH Equity 福星股份 Hubei Fuxing Science And Technology Co Ltd 13.09 12,427 20.05 16.36 13.52 1.27 1.91 Iron/Steel

000762 CH Equity 西藏矿业 Tibet Mineral Development Co 19.11 9,953 345.57 212.33 141.56 4.71 n.a. Iron/Steel

002245 CH Equity 澳洋顺昌 Jiangsu Aucksun Co Ltd 9.78 9,538 44.27 37.62 24.45 5.24 0.31 Iron/Steel

002318 CH Equity 久立特材 Zhejiang JIULI Hi-tech Metals Co Ltd 11.20 9,425 78.10 50.68 41.95 3.69 0.18 Iron/Steel

002342 CH Equity 巨力索具 Juli Sling Co Ltd 6.91 6,634 552.93 n.a. n.a. 2.74 0.07 Iron/Steel

000738 CH Equity 中航动控 AVIC Aero-Engine Controls Co Ltd 26.17 29,981 147.92 130.85 106.82 6.14 0.08 Leisure Time

000620 CH Equity 新华联 Macrolink Culturaltainment Development Co Ltd 8.94 16,956 48.78 32.75 24.16 0.82 1.12 Leisure Time

002707 CH Equity 众信旅游 UTour Group Co Ltd 18.05 15,231 65.74 63.11 44.13 8.71 0.14 Leisure Time

000802 CH Equity 北京文化 Beijing Jingxi Tourism Development Co Ltd 20.74 15,062 399.99 49.98 41.48 3.59 n.a. Leisure Time

002678 CH Equity 珠江钢琴 Guangzhou Pearl River Piano Group Co Ltd 15.31 14,636 104.51 90.06 76.55 7.44 0.46 Leisure Time

300178 CH Equity 腾邦国际 Shenzhen Tempus Global Travel Holdings Ltd 18.92 10,549 64.10 56.31 43.39 6.72 0.16 Leisure Time

002605 CH Equity 姚记扑克 Shanghai Yaoji Playing Card Co Ltd 18.55 7,367 82.17 61.83 51.53 5.72 0.54 Leisure Time

000888 CH Equity 峨眉山Ａ Emei Shan Tourism Co 13.05 6,876 34.49 32.95 27.83 3.43 0.77 Leisure Time

000428 CH Equity 华天酒店 Huatian Hotel Group Co Ltd 7.13 7,265 n.a. 142.60 101.86 2.37 n.a. Lodging

000157 CH Equity 中联重科 Zoomlion Heavy Industry Science and Technology Co Ltd 4.77 34,402 n.a. n.a. 59.63 0.98 3.14 Machinery-Constr&Mining

000425 CH Equity 徐工机械 XCMG Construction Machinery Co Ltd 3.62 25,368 129.44 190.53 61.36 1.24 n.a. Machinery-Constr&Mining

002651 CH Equity 利君股份 Chengdu Leejun Industrial Co Ltd 11.46 11,489 110.54 n.a. n.a. 6.15 0.52 Machinery-Constr&Mining

000528 CH Equity 柳工 Guangxi Liugong Machinery Co Ltd 7.86 8,844 1,739.71 142.91 58.66 1.00 1.27 Machinery-Constr&Mining

000680 CH Equity 山推股份 Shantui Construction Machinery Co Ltd 6.36 7,891 n.a. n.a. n.a. 2.54 n.a. Machinery-Constr&Mining

002097 CH Equity 山河智能 Sunward Intelligent Equipment Co Ltd 9.87 7,455 381.82 44.86 27.80 3.09 n.a. Machinery-Constr&Mining

002227 CH Equity 奥特迅 Shenzhen Auto Electric Power Plant Co Ltd 27.82 6,134 978.92 n.a. n.a. 7.93 0.07 Machinery-Constr&Mining

300276 CH Equity 三丰智能 Hubei SanFeng Intelligent Conveying Equipment Co Ltd n.a. n.a. n.a. n.a. n.a. n.a. 0.06 Machinery-Diversified

300024 CH Equity 机器人 Siasun Robot & Automation Co Ltd 24.20 37,758 90.00 71.81 55.63 7.01 0.19 Machinery-Diversified

002131 CH Equity 利欧股份 Leo Group Co Ltd 17.22 27,667 51.71 40.23 28.70 3.69 0.17 Machinery-Diversified

000536 CH Equity 华映科技 CPT Technology Group Co Ltd 14.65 25,326 23.47 n.a. n.a. 1.95 n.a. Machinery-Diversified

300159 CH Equity 新研股份 Xinjiang Machinery Research Institute Co Ltd 16.76 24,978 71.95 69.83 40.88 4.41 0.13 Machinery-Diversified

002176 CH Equity 江特电机 Jiangxi Special Electric Motor Co Ltd 13.40 19,687 116.94 50.57 28.82 4.20 n.a. Machinery-Diversified

000806 CH Equity 银河生物 Galaxy Biomedical Investment Co Ltd 17.73 19,501 7,655.44 n.a. n.a. 9.65 n.a. Machinery-Diversified

300145 CH Equity 中金环境 Nanfang Zhongjin Environment Co Ltd 25.20 16,830 35.57 33.16 23.75 4.39 0.20 Machinery-Diversified

002595 CH Equity 豪迈科技 Shandong Himile Mechanical Science & Technology Co Ltd 20.72 16,576 23.61 21.70 17.79 4.92 1.21 Machinery-Diversified

300222 CH Equity 科大智能 CSG Smart Science&Technology Co Ltd 22.35 16,274 63.96 77.07 56.30 4.60 0.31 Machinery-Diversified

000666 CH Equity 经纬纺机 Jingwei Textile Machinery Co Ltd 21.84 15,378 37.12 23.61 19.24 2.44 0.23 Machinery-Diversified

300090 CH Equity 盛运环保 Anhui Shengyun Environment Protection Group Co Ltd 11.59 15,298 18.97 39.97 28.98 2.91 0.43 Machinery-Diversified

002690 CH Equity 美亚光电 Hefei Meiya Optoelectronic Technology Inc 21.44 14,493 49.32 44.39 36.78 7.47 1.40 Machinery-Diversified

300257 CH Equity 开山股份 Zhejiang Kaishan Compressor Co Ltd 16.68 14,311 179.18 64.15 44.24 4.21 n.a. Machinery-Diversified

002698 CH Equity 博实股份 Harbin Boshi Automation Co Ltd 17.19 11,718 111.92 63.67 54.57 6.62 0.41 Machinery-Diversified

001696 CH Equity 宗申动力 Chongqing Zongshen Power Machinery Co Ltd 10.08 11,542 34.59 28.00 22.40 3.32 3.57 Machinery-Diversified

002367 CH Equity 康力电梯 Canny Elevator Co Ltd 14.43 11,510 20.40 18.99 16.25 3.35 1.39 Machinery-Diversified

002121 CH Equity 科陆电子 Shenzhen Clou Electronics Co Ltd 9.46 11,275 69.47 38.15 27.82 4.73 0.21 Machinery-Diversified

002011 CH Equity 盾安环境 Zhejiang Dun'An Artificial Environment Co Ltd 10.96 10,053 130.52 73.07 45.67 2.24 n.a. Machinery-Diversified

300307 CH Equity 慈星股份 Ningbo Cixing Co Ltd 12.27 9,841 91.72 57.07 43.05 2.52 0.81 Machinery-Diversified

000816 CH Equity 智慧农业 Jiangsu Nonghua Intelligent Agriculture Technology Co Ltd 6.75 9,577 437.09 n.a. n.a. 2.75 0.15 Machinery-Diversified

002111 CH Equity 威海广泰 Weihai Guangtai Airport Equipment Co Ltd 24.79 9,466 45.15 39.16 29.94 3.62 0.48 Machinery-Diversified

000821 CH Equity 京山轻机 JS Corrugating Machinery Co Ltd 16.69 7,973 100.76 60.69 43.92 4.70 0.06 Machinery-Diversified

300443 CH Equity 金雷风电 Shandong Laiwu Jinlei Wind Power Technology Co Ltd 66.40 7,903 47.94 n.a. n.a. 8.30 0.39 Machinery-Diversified

002564 CH Equity 天沃科技 Suzhou Thvow Technology Co Ltd 10.65 7,878 n.a. 463.04 122.41 2.87 0.09 Machinery-Diversified

300263 CH Equity 隆华节能 Luoyang Longhua Heat Transfer & Energy Conservation Co Ltd 8.11 7,154 64.52 25.91 20.96 2.93 0.25 Machinery-Diversified

002490 CH Equity 山东墨龙 Shandong Molong Petroleum Machinery Co Ltd 10.91 6,698 n.a. n.a. n.a. 3.58 n.a. Machinery-Diversified

002021 CH Equity 中捷资源 Zoje Resources Investment Co Ltd 9.38 6,452 n.a. n.a. n.a. 6.83 n.a. Machinery-Diversified

000837 CH Equity 秦川机床 Qinchuan Machine Tool & Tool Group Co Ltd 8.71 6,039 n.a. n.a. n.a. 2.18 n.a. Machinery-Diversified

002184 CH Equity 海得控制 Shanghai Hi-Tech Control System Co Ltd 22.79 5,456 129.21 46.51 30.39 4.93 0.66 Machinery-Diversified

000719 CH Equity 大地传媒 Central China Land Media Co Ltd n.a. n.a. n.a. n.a. n.a. n.a. 1.25 Media

000839 CH Equity 中信国安 CITIC Guoan Information Industry Co Ltd 10.43 40,884 127.16 n.a. n.a. 6.26 0.38 Media

000156 CH Equity 华数传媒 Wasu Media Holding Co Ltd 19.16 27,463 46.96 41.65 33.61 2.84 0.18 Media

300133 CH Equity 华策影视 Zhejiang Huace Film & TV Co Ltd 13.44 23,475 53.02 35.94 27.60 3.80 0.20 Media

000793 CH Equity 华闻传媒 Huawen Media Investment Corp 11.13 22,453 22.30 n.a. n.a. 2.42 0.40 Media

300148 CH Equity 天舟文化 Tangel Publishing Co Ltd 22.24 14,455 65.25 46.33 32.09 3.43 0.15 Media

002343 CH Equity 慈文传媒 Ciwen Media Co Ltd 44.30 13,933 77.79 45.86 33.31 16.33 n.a. Media

300364 CH Equity 中文在线 ChineseAll Digital Publishing Group Co Ltd 48.57 13,838 357.20 196.64 112.95 22.61 0.02 Media

002175 CH Equity 东方网络 Oriental Times Media Corp 17.81 13,425 196.28 104.76 65.96 9.53 0.22 Media

002425 CH Equity 凯撒文化 Kaiser China Cultural Co Ltd 22.73 11,560 76.68 54.12 31.88 3.44 0.22 Media

300336 CH Equity 新文化 Shanghai New Culture Media Group Co Ltd 20.40 10,966 41.00 37.43 28.53 4.04 0.49 Media

000665 CH Equity 湖北广电 Hubei Broadcasting & Television Information Network Co Ltd 15.08 9,594 28.68 22.51 19.33 1.72 0.66 Media

002238 CH Equity 天威视讯 Shenzhen Topway Video Communication Co Ltd 15.46 9,544 31.60 27.61 18.63 3.64 1.08 Media

002181 CH Equity 粤传媒 Guangdong Guangzhou Daily Media Co Ltd 7.74 8,987 n.a. n.a. n.a. 2.47 n.a. Media

13

Figure 2h: Eligible stocks for SZ-HK Connect (northbound)



(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

002071 CH Equity 长城影视 Great Wall Movie & Television Co Ltd n.a. n.a. n.a. n.a. n.a. n.a. n.a. Metal Fabricate/Hardware

002075 CH Equity 沙钢股份 Jiangsu Shagang Co Ltd n.a. n.a. n.a. 217.84 194.22 n.a. n.a. Metal Fabricate/Hardware

000778 CH Equity 新兴铸管 Xinxing Ductile Iron Pipes Co Ltd 5.38 19,601 36.76 39.56 32.41 1.15 0.56 Metal Fabricate/Hardware

002050 CH Equity 三花股份 Zhejiang Sanhua Intelligent Controls Co Ltd 10.39 18,717 22.87 22.59 18.96 3.61 0.96 Metal Fabricate/Hardware

002384 CH Equity 东山精密 Suzhou Dongshan Precision Manufacturing Co Ltd 18.39 15,584 128.54 60.69 22.62 5.51 0.05 Metal Fabricate/Hardware

002445 CH Equity 中南文化 Zhongnan Red Culture Group Co Ltd 18.14 14,711 72.18 39.43 27.07 4.11 0.05 Metal Fabricate/Hardware

002122 CH Equity 天马股份 Tianma Bearing Group Co Ltd 12.16 14,446 406.47 n.a. n.a. 3.04 0.41 Metal Fabricate/Hardware

002203 CH Equity 海亮股份 Zhejiang Hailiang Co Ltd 8.35 14,129 25.31 n.a. n.a. 3.38 0.72 Metal Fabricate/Hardware

002501 CH Equity 利源精制 Jilin Liyuan Precision Manufacturing Co Ltd 12.29 11,690 21.84 20.48 16.72 2.64 n.a. Metal Fabricate/Hardware

002418 CH Equity 康盛股份 Zhe Jiang Kangsheng Co Ltd 10.10 11,478 67.58 51.79 40.40 5.64 0.33 Metal Fabricate/Hardware

300185 CH Equity 通裕重工 Tongyu Heavy Industry Co Ltd 3.35 10,947 65.14 63.21 45.89 2.23 1.00 Metal Fabricate/Hardware

002630 CH Equity 华西能源 China Western Power Industrial Co Ltd 13.25 9,779 52.38 28.80 21.72 3.20 0.26 Metal Fabricate/Hardware

000777 CH Equity 中核科技 Sufa Technology Industry Co Ltd CNNC 24.46 9,378 113.33 97.84 81.53 7.62 0.25 Metal Fabricate/Hardware

002204 CH Equity 大连重工 Dalian Huarui Heavy Industry Group Co Ltd 4.62 8,923 172.64 n.a. n.a. 1.35 0.16 Metal Fabricate/Hardware

002392 CH Equity 北京利尔 Beijing Lier High-temperature Materials Co Ltd 5.97 7,155 n.a. 41.17 34.11 2.39 n.a. Metal Fabricate/Hardware

002443 CH Equity 金洲管道 Zhejiang Kingland Pipeline & Technologies Co Ltd 12.89 6,710 117.38 11.45 55.56 3.41 0.78 Metal Fabricate/Hardware

000630 CH Equity 铜陵有色 Tongling Nonferrous Metals Group Co Ltd 3.25 31,072 n.a. 162.50 108.33 2.22 n.a. Mining

000060 CH Equity 中金岭南 Shenzhen Zhongjin Lingnan Nonfemet Co Ltd 12.75 28,211 140.35 70.83 36.43 3.71 0.08 Mining

002460 CH Equity 赣锋锂业 Jiangxi Ganfeng Lithium Co Ltd 29.40 22,129 41.92 39.78 29.73 9.74 0.26 Mining

000960 CH Equity 锡业股份 Yunnan Tin Co Ltd 14.88 21,904 n.a. 212.57 41.92 2.81 n.a. Mining

000807 CH Equity 云铝股份 Yunnan Aluminium Co Ltd 7.50 19,551 47.19 32.61 22.59 2.45 n.a. Mining

000878 CH Equity 云南铜业 Yunnan Copper Co Ltd 13.32 18,866 38.28 n.a. n.a. 3.36 n.a. Mining

000758 CH Equity 中色股份 China Nonferrous Metal Industry's Foreign Engineering and Construction Co Ltd 9.24 18,197 60.41 28.70 20.44 3.73 0.27 Mining

002155 CH Equity 湖南黄金 Hunan Gold Corp Ltd 12.45 14,965 124.37 113.18 80.32 3.49 n.a. Mining

300064 CH Equity 豫金刚石 Zhengzhou Sino Crystal Diamond Co Ltd 11.48 13,839 56.05 43.65 27.80 3.80 0.09 Mining

000603 CH Equity 盛达矿业 Shengda Mining Co Ltd 18.40 13,296 45.80 27.59 17.08 5.41 n.a. Mining

000697 CH Equity 炼石有色 Shaanxi Ligeance Mineral Resources Co Ltd 23.51 13,158 n.a. 261.22 60.28 9.16 0.06 Mining

000426 CH Equity 兴业矿业 Inner Mongolia Xingye Mining Co Ltd 10.09 12,046 240.59 144.14 48.05 4.30 n.a. Mining

002600 CH Equity 江粉磁材 JPMF Guangdong Co Ltd 10.10 11,890 54.54 n.a. n.a. 2.29 0.50 Mining

002237 CH Equity 恒邦股份 Shandong Humon Smelting Co Ltd 12.41 11,298 54.46 53.96 45.96 3.06 n.a. Mining

000612 CH Equity 焦作万方 Jiaozuo Wanfang Aluminum Manufacturing Co Ltd 9.17 10,932 n.a. 35.27 32.75 2.42 2.75 Mining

000657 CH Equity 中钨高新 China Tungsten And Hightech Materials Co Ltd 16.25 10,216 n.a. 2,031 377.91 3.42 n.a. Mining

002378 CH Equity 章源钨业 Chongyi Zhangyuan Tungsten Co Ltd 10.76 9,944 n.a. 430.40 307.43 5.20 n.a. Mining

300337 CH Equity 银邦股份 Yinbang Clad Material Co Ltd 10.99 9,033 n.a. 289.21 58.46 5.89 n.a. Mining

000751 CH Equity 锌业股份 Huludao Zinc Industry Co 6.29 8,868 76.87 n.a. n.a. 4.18 n.a. Mining

002171 CH Equity 楚江新材 Anhui Truchum Advanced Materials & Technology Co Ltd 17.68 7,863 44.79 49.80 60.97 4.36 0.11 Mining

002509 CH Equity 天广中茂 TianGuang ZhongMao Co Ltd n.a. n.a. n.a. 56.36 44.49 n.a. 0.18 Miscellaneous Manufactur

002450 CH Equity 康得新 Kangde Xin Composite Material Group Co Ltd 18.46 65,059 32.28 30.16 20.81 4.34 0.24 Miscellaneous Manufactur

300433 CH Equity 蓝思科技 Lens Technology Co Ltd 26.58 57,987 48.85 39.61 24.08 4.44 1.25 Miscellaneous Manufactur

002456 CH Equity 欧菲光 Shenzhen O-film Tech Co Ltd 36.35 39,468 53.68 43.95 28.24 5.60 0.19 Miscellaneous Manufactur

000039 CH Equity 中集集团 China International Marine Containers Group Co Ltd 15.71 37,913 1,358.88 80.56 24.06 1.81 1.40 Miscellaneous Manufactur

000887 CH Equity 中鼎股份 Anhui Zhongding Sealing Parts Co Ltd 25.94 31,993 33.74 32.63 26.61 4.88 0.31 Miscellaneous Manufactur

300408 CH Equity 三环集团 Chaozhou Three-Circle Group Co Ltd 17.00 29,383 29.30 27.87 20.24 6.10 1.03 Miscellaneous Manufactur

002426 CH Equity 胜利精密 Suzhou Victory Precision Manufacture Co Ltd 9.66 28,073 49.18 31.36 21.81 5.10 0.21 Miscellaneous Manufactur

300266 CH Equity 兴源环境 Xingyuan Environment Technology Co Ltd 52.15 26,521 126.42 60.99 44.38 8.90 0.03 Miscellaneous Manufactur

000970 CH Equity 中科三环 Beijing Zhong Ke San Huan High-Tech Co Ltd 15.98 17,022 52.40 51.88 38.60 4.22 0.53 Miscellaneous Manufactur

002389 CH Equity 南洋科技 Zhejiang Nanyang Technology Co Ltd 22.97 16,307 123.11 117.79 106.84 4.75 0.09 Miscellaneous Manufactur

002108 CH Equity 沧州明珠 Cangzhou Mingzhu Plastic Co Ltd 22.15 14,211 30.60 28.40 24.80 6.59 0.72 Miscellaneous Manufactur

000969 CH Equity 安泰科技 Advanced Technology & Materials Co Ltd 13.37 13,718 174.68 78.65 52.64 2.97 n.a. Miscellaneous Manufactur

002372 CH Equity 伟星新材 Zhejiang Weixing New Building Materials Co Ltd 16.40 12,721 20.84 20.50 17.15 5.07 2.81 Miscellaneous Manufactur

002464 CH Equity 金利科技 Kee Ever Bright Decorative Technology Co Ltd 75.77 11,031 47.28 n.a. n.a. 10.33 n.a. Miscellaneous Manufactur

300224 CH Equity 正海磁材 Yantai Zhenghai Magnetic Material Co Ltd 20.45 10,352 80.54 47.78 35.38 4.76 0.29 Miscellaneous Manufactur

002547 CH Equity 春兴精工 Suzhou Chunxing Precision Mechanical Co Ltd 10.01 10,130 52.75 36.14 24.41 5.10 0.20 Miscellaneous Manufactur

300031 CH Equity 宝通科技 Wuxi Boton Technology Co Ltd 22.99 9,122 62.44 49.76 34.73 3.61 n.a. Miscellaneous Manufactur

002540 CH Equity 亚太科技 Jiangsu Asia-Pacific Light Alloy Technology Co Ltd 8.40 8,736 28.47 30.77 24.14 3.06 0.60 Miscellaneous Manufactur

002324 CH Equity 普利特 Shanghai Pret Composites Co Ltd 31.21 8,427 31.54 28.12 24.38 4.11 0.32 Miscellaneous Manufactur

002226 CH Equity 江南化工 Anhui Jiangnan Chemical Industry Co Ltd 8.61 7,846 133.45 101.29 95.67 2.11 n.a. Miscellaneous Manufactur

002497 CH Equity 雅化集团 Sichuan Yahua Industrial Group Co Ltd 7.18 6,893 53.21 n.a. n.a. 3.04 0.84 Miscellaneous Manufactur

300151 CH Equity 昌红科技 Shenzhen Changhong Technology Co Ltd 12.98 6,522 212.63 n.a. n.a. 8.02 0.23 Miscellaneous Manufactur

000700 CH Equity 模塑科技 Jiangnan Mould and Plastic Technology Co Ltd 8.98 6,441 31.48 19.11 16.94 2.01 0.56 Miscellaneous Manufactur

002037 CH Equity 久联发展 Guizhou Jiulian Industrial Explosive Material Development Co Ltd 18.80 6,155 507.44 156.67 85.45 3.11 0.27 Miscellaneous Manufactur

002221 CH Equity 东华能源 Oriental Energy Co Ltd 13.20 21,384 28.96 33.00 16.30 3.29 0.19 Oil&Gas

002353 CH Equity 杰瑞股份 Yantai Jereh Oilfield Services Group Co Ltd 20.06 19,215 154.05 91.60 51.44 2.45 0.15 Oil&Gas Services

300191 CH Equity 潜能恒信 Sino GeoPhysical Co Ltd 38.79 12,413 n.a. n.a. n.a. 10.58 0.03 Oil&Gas Services

002554 CH Equity 惠博普 China Oil HBP Science & Technology Co Ltd 7.82 8,377 49.29 46.00 30.08 3.86 1.28 Oil&Gas Services

000099 CH Equity 中信海直 Citic Offshore Helicopter Co Ltd 12.97 7,861 77.80 48.58 42.11 2.80 0.58 Oil&Gas Services

000852 CH Equity 石化机械 Sinopec Oilfield Equipment Corp 12.05 7,208 n.a. n.a. n.a. 3.27 n.a. Oil&Gas Services

300157 CH Equity 恒泰艾普 LandOcean Energy Services Co Ltd 10.05 7,163 541.93 37.22 29.56 1.98 1.00 Oil&Gas Services

002701 CH Equity 奥瑞金 Org Packaging Co Ltd 9.32 21,951 19.01 18.57 15.59 4.43 2.01 Packaging&Containers

002522 CH Equity 浙江众成 Zhejiang Zhongcheng Packing Material Co Ltd 20.70 18,284 181.18 n.a. n.a. 12.88 0.19 Packaging&Containers

002303 CH Equity 美盈森 MYS Group Co Ltd 11.46 17,675 67.85 40.93 29.09 6.41 0.21 Packaging&Containers

002752 CH Equity 升兴股份 Shengxing Group Co Ltd 21.38 13,469 97.18 71.27 62.88 9.59 0.31 Packaging&Containers

002117 CH Equity 东港股份 Tungkong Inc 30.22 10,993 50.49 44.70 36.59 7.57 0.99 Packaging&Containers

002067 CH Equity 景兴纸业 Zhejiang Jingxing Paper JSC Ltd 7.30 7,986 43.64 n.a. n.a. 2.58 n.a. Packaging&Containers

002263 CH Equity 大东南 Zhejiang Great Southeast Co Ltd 3.81 7,157 n.a. n.a. n.a. 2.47 0.39 Packaging&Containers

300057 CH Equity 万顺股份 Shantou Wanshun Package Material Co Ltd 15.55 6,837 93.32 n.a. n.a. 2.97 0.19 Packaging&Containers

14

Figure 2i: Eligible stocks for SZ-HK Connect (northbound)



(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

000538 CH Equity 云南白药 Yunnan Baiyao Group Co Ltd n.a. n.a. n.a. 23.38 20.42 n.a. 0.87 Pharmaceuticals

002462 CH Equity 嘉事堂 Cachet Pharmaceutical Co Ltd n.a. n.a. n.a. 43.98 33.57 n.a. 0.59 Pharmaceuticals

000423 CH Equity 东阿阿胶 Dong-E-E-Jiao Co Ltd 60.20 39,372 22.87 21.68 18.62 5.11 1.33 Pharmaceuticals

002773 CH Equity 康弘药业 Chengdu Kanghong Pharmaceutical Group Co Ltd 57.94 39,097 85.06 74.28 57.20 14.04 0.23 Pharmaceuticals

000963 CH Equity 华东医药 Huadong Medicine Co Ltd 73.02 35,492 25.34 25.24 20.61 5.05 1.71 Pharmaceuticals

000623 CH Equity 吉林敖东 Jilin Aodong Pharmaceutical Group Co Ltd 35.66 31,896 17.10 n.a. n.a. 1.81 0.84 Pharmaceuticals

002294 CH Equity 信立泰 Shenzhen Salubris Pharmaceuticals Co Ltd 29.91 31,286 22.71 20.96 17.42 6.26 2.01 Pharmaceuticals

300267 CH Equity 尔康制药 Hunan Er-Kang Pharmaceutical Co Ltd 14.77 30,431 33.22 33.04 24.21 6.28 0.34 Pharmaceuticals

002424 CH Equity 贵州百灵 Guizhou Bailing Group Pharmaceutical Co Ltd 21.36 30,143 61.04 n.a. n.a. 10.71 0.37 Pharmaceuticals

300122 CH Equity 智飞生物 Chongqing Zhifei Biological Products Co Ltd 18.82 30,112 739.87 216.32 67.94 12.07 0.27 Pharmaceuticals

000999 CH Equity 华润三九 China Resources Sanjiu Medical & Pharmaceutical Co Ltd 27.00 26,430 20.45 20.19 17.34 3.19 0.56 Pharmaceuticals

002422 CH Equity 科伦药业 Sichuan Kelun Pharmaceutical Co Ltd 17.57 25,301 39.94 35.86 31.10 2.21 0.79 Pharmaceuticals

000028 CH Equity 国药一致 China National Accord Medicines Corp Ltd 71.42 24,307 28.46 32.07 25.15 4.27 0.42 Pharmaceuticals

002399 CH Equity 海普瑞 Shenzhen Hepalink Pharmaceutical Co Ltd 18.63 23,235 51.04 n.a. n.a. 2.91 2.01 Pharmaceuticals

002001 CH Equity 新和成 Zhejiang NHU Co Ltd 21.01 22,878 23.93 16.97 16.77 2.98 0.95 Pharmaceuticals

000513 CH Equity 丽珠集团 Livzon Pharmaceutical Group Inc 58.68 22,661 31.37 32.65 26.46 3.96 0.85 Pharmaceuticals

002589 CH Equity 瑞康医药 Realcan Pharmaceutical Co Ltd 34.00 22,244 43.48 37.65 28.64 3.34 0.13 Pharmaceuticals

000989 CH Equity 九芝堂 Jiuzhitang Co Ltd 25.58 22,238 22.41 n.a. n.a. 5.63 1.36 Pharmaceuticals

002038 CH Equity 双鹭药业 Beijing SL Pharmaceutical Co Ltd 30.00 20,547 49.19 38.81 28.93 5.40 0.67 Pharmaceuticals

002004 CH Equity 华邦健康 Huapont Life Sciences Co Ltd 9.93 20,206 30.73 24.22 19.86 2.08 4.03 Pharmaceuticals

002603 CH Equity 以岭药业 Shijiazhuang Yiling Pharmaceutical Co Ltd 17.55 19,793 37.23 35.82 29.75 3.85 0.57 Pharmaceuticals

002287 CH Equity 奇正藏药 Tibet Cheezheng Tibetan Medicine Co Ltd 48.18 19,561 70.18 60.23 49.67 11.88 0.85 Pharmaceuticals

000661 CH Equity 长春高新 Changchun High & New Technology Industries Inc 114.80 19,529 39.23 40.97 31.35 5.15 0.61 Pharmaceuticals

300146 CH Equity 汤臣倍健 By-health Co Ltd 13.17 19,176 31.26 24.25 20.58 4.08 2.28 Pharmaceuticals

002437 CH Equity 誉衡药业 Harbin Gloria Pharmaceuticals Co Ltd 8.55 18,795 25.50 n.a. n.a. 4.94 0.97 Pharmaceuticals

002653 CH Equity 海思科 Haisco Pharmaceutical Group Co Ltd 17.31 18,699 45.49 n.a. n.a. 8.74 1.44 Pharmaceuticals

300026 CH Equity 红日药业 Tianjin Chase Sun Pharmaceutical Co Ltd 6.20 18,671 31.52 28.97 25.00 3.25 0.32 Pharmaceuticals

000566 CH Equity 海南海药 Hainan Haiyao Co Ltd 13.86 18,517 129.24 n.a. n.a. 3.41 n.a. Pharmaceuticals

300199 CH Equity 翰宇药业 Hybio Pharmaceutical Co Ltd 20.05 18,413 49.92 42.03 27.96 5.22 0.12 Pharmaceuticals

000078 CH Equity 海王生物 Shenzhen Neptunus Bioengineering Co Ltd 6.89 18,246 42.00 n.a. n.a. 3.60 n.a. Pharmaceuticals

000766 CH Equity 通化金马 Tonghua Golden-Horse Pharmaceutical Industry Co Ltd 18.78 18,151 133.29 n.a. n.a. 4.49 n.a. Pharmaceuticals

300142 CH Equity 沃森生物 Walvax Biotechnology Co Ltd 11.48 17,650 n.a. n.a. n.a. 7.73 n.a. Pharmaceuticals

002019 CH Equity 亿帆医药 Yifan Pharmaceutical Co Ltd 15.66 17,238 28.38 18.75 18.00 5.14 0.26 Pharmaceuticals

002390 CH Equity 信邦制药 Guizhou Xinbang Pharmaceutical Co Ltd 10.10 17,219 62.81 48.79 36.46 2.74 0.30 Pharmaceuticals

300294 CH Equity 博雅生物 Jiangxi Boya Bio-Pharmaceutical Co Ltd 61.63 16,479 71.41 59.26 43.04 8.24 0.32 Pharmaceuticals

300009 CH Equity 安科生物 Anhui Anke Biotechnology Group Co Ltd 24.39 13,356 80.29 63.52 49.37 10.30 0.47 Pharmaceuticals

300439 CH Equity 美康生物 Ningbo Medical System Biotechnology Co Ltd 34.09 11,851 65.56 58.78 48.01 9.00 0.29 Pharmaceuticals

002275 CH Equity 桂林三金 Guilin Sanjin Pharmaceutical Co Ltd 19.63 11,586 28.33 n.a. n.a. 4.93 2.55 Pharmaceuticals

300485 CH Equity 赛升药业 Beijing Science Sun Pharmaceutical Co Ltd 48.14 11,554 48.38 n.a. n.a. 6.14 0.37 Pharmaceuticals

002317 CH Equity 众生药业 Guangdong Zhongsheng Pharmaceutical Co Ltd 13.35 10,879 25.28 27.24 22.82 3.28 1.01 Pharmaceuticals

002737 CH Equity 葵花药业 Sunflower Pharmaceutical Group Co Ltd 36.58 10,681 36.74 33.25 27.71 4.13 0.82 Pharmaceuticals

002550 CH Equity 千红制药 Changzhou Qianhong Biopharma Co Ltd 8.13 10,406 41.64 33.88 29.04 4.41 0.92 Pharmaceuticals

002118 CH Equity 紫鑫药业 Jilin Zixin Pharmaceutical Industrial Co Ltd 8.12 10,400 63.50 n.a. n.a. 2.84 n.a. Pharmaceuticals

000908 CH Equity 景峰医药 Hunan Jingfeng Pharmaceutical Co Ltd 11.73 10,320 33.41 n.a. n.a. 4.63 0.78 Pharmaceuticals

300363 CH Equity 博腾股份 Porton Fine Chemicals Ltd 23.96 10,185 68.24 57.05 43.17 8.24 0.17 Pharmaceuticals

300110 CH Equity 华仁药业 Qingdao Huaren Pharmaceutical Co Ltd 15.29 10,052 1,609.47 n.a. n.a. 6.91 n.a. Pharmaceuticals

300147 CH Equity 香雪制药 Xiangxue Pharmaceutical Co Ltd 14.60 9,658 87.39 69.52 41.71 2.84 0.82 Pharmaceuticals

300039 CH Equity 上海凯宝 Shanghai Kaibao Pharmaceutical Co Ltd 11.50 9,538 33.29 31.08 29.49 4.37 0.87 Pharmaceuticals

000650 CH Equity 仁和药业 Renhe Pharmacy Co Ltd 7.59 9,399 23.33 18.07 14.06 3.53 n.a. Pharmaceuticals

000739 CH Equity 普洛药业 Apeloa Pharmaceutical Co Ltd 8.15 9,347 46.40 40.75 30.19 3.70 0.67 Pharmaceuticals

002349 CH Equity 精华制药 Nantong Jinghua Pharmaceutical Co Ltd 22.08 9,280 64.59 52.57 40.89 4.41 0.30 Pharmaceuticals

002393 CH Equity 力生制药 Tianjin Lisheng Pharmaceutical Co Ltd 47.10 8,594 118.33 n.a. n.a. 2.89 0.85 Pharmaceuticals

002433 CH Equity 太安堂 Guangdong Taiantang Pharmaceutical Co Ltd 11.11 8,567 46.83 34.72 26.45 1.88 0.23 Pharmaceuticals

300255 CH Equity 常山药业 Hebei Changshan Biochemical Pharmaceutical Co Ltd 8.78 8,209 45.29 43.90 35.12 3.78 0.34 Pharmaceuticals

002332 CH Equity 仙琚制药 Zhejiang Xianju Pharmaceutical Co Ltd 12.85 7,849 57.99 53.54 36.71 3.60 0.78 Pharmaceuticals

002020 CH Equity 京新药业 Zhejiang Jingxin Pharmaceutical Co Ltd 12.12 7,747 34.67 31.08 24.24 3.27 0.62 Pharmaceuticals

300006 CH Equity 莱美药业 Chongqing Lummy Pharmaceutical Co Ltd 9.05 7,351 132.95 47.63 21.05 4.42 0.31 Pharmaceuticals

300016 CH Equity 北陆药业 Beijing Beilu Pharmaceutical Co Ltd 21.93 7,149 201.63 n.a. n.a. 7.41 0.09 Pharmaceuticals

000919 CH Equity 金陵药业 Jinling Pharmaceutical Co Ltd 14.10 7,106 35.62 26.96 22.27 2.83 1.21 Pharmaceuticals

300049 CH Equity 福瑞股份 Inner Mongolia Furui Medical Science Co Ltd 23.22 6,113 60.43 n.a. n.a. 4.45 0.43 Pharmaceuticals

300181 CH Equity 佐力药业 Zhejiang Jolly Pharmaceutical Co Ltd 10.04 6,111 69.98 n.a. n.a. 4.62 0.70 Pharmaceuticals

002107 CH Equity 沃华医药 Shandong Wohua Pharmaceutical Co Ltd 15.73 5,675 103.78 n.a. n.a. 11.75 0.64 Pharmaceuticals

000756 CH Equity 新华制药 Shandong Xinhua Pharmaceutical Co Ltd 13.14 4,802 58.38 n.a. n.a. 3.15 0.15 Pharmaceuticals

002267 CH Equity 陕天然气 Shaan Xi Provincial Natural Gas Co Ltd 10.39 11,554 20.18 18.79 16.41 2.22 1.92 Pipelines

000029 CH Equity 深深房Ａ Shenzhen Special Economic Zone Real Estate & Properties Group Co Ltd n.a. n.a. n.a. n.a. n.a. n.a. n.a. Real Estate

000558 CH Equity 莱茵体育 Lander Sports Development Co Ltd n.a. n.a. n.a. 86.76 48.36 n.a. n.a. Real Estate

000002 CH Equity 万科Ａ China Vanke Co Ltd 26.97 290,188 15.27 14.19 12.03 2.97 2.67 Real Estate

001979 CH Equity 招商蛇口 China Merchants Shekou Industrial Zone Holdings Co Ltd 20.06 158,556 22.80 18.49 15.41 3.18 1.30 Real Estate

000046 CH Equity 泛海控股 Oceanwide Holdings Co Ltd 10.67 55,443 19.77 23.05 17.29 3.32 1.41 Real Estate

002146 CH Equity 荣盛发展 RiseSun Real Estate Development Co Ltd 9.29 40,394 12.48 12.27 10.23 1.86 2.69 Real Estate

000402 CH Equity 金融街 Financial Street Holdings Co Ltd 12.46 37,242 18.12 14.10 13.24 1.45 3.21 Real Estate

000540 CH Equity 中天城投 Zhongtian Urban Development Group Co Ltd 6.93 32,495 11.47 9.33 7.48 2.30 2.88 Real Estate

000656 CH Equity 金科股份 Jinke Properties Group Co Ltd 5.66 30,262 16.04 15.72 13.61 1.76 0.88 Real Estate

000718 CH Equity 苏宁环球 Suning Universal Co Ltd 9.87 29,952 31.41 22.64 16.87 4.11 1.01 Real Estate

000671 CH Equity 阳光城 Sunshine City Group Co Ltd 6.43 26,042 21.56 15.13 12.02 2.13 0.82 Real Estate

000732 CH Equity 泰禾集团 Thaihot Group Co Ltd 20.53 25,549 14.90 13.10 9.64 1.84 0.49 Real Estate

002244 CH Equity 滨江集团 Hangzhou Binjiang Real Estate Group Co Ltd 7.19 22,371 15.60 15.40 13.31 1.80 0.46 Real Estate

000031 CH Equity 中粮地产 COFCO Property Group Co Ltd 9.66 17,521 68.61 n.a. n.a. 3.18 0.41 Real Estate

000979 CH Equity 中弘股份 Zhonghong Holding Co Ltd 2.86 17,141 n.a. n.a. n.a. 1.74 0.35 Real Estate

000517 CH Equity 荣安地产 Rongan Property Co Ltd 5.20 16,556 166.00 n.a. n.a. 4.67 0.58 Real Estate

002285 CH Equity 世联行 Shenzhen World Union Properties Consultancy Inc 8.03 16,421 25.34 22.88 18.59 4.31 0.36 Real Estate

000042 CH Equity 中洲控股 Shenzhen Centralcon Investment Holding Co Ltd 20.24 13,456 201.39 26.81 21.08 2.37 0.99 Real Estate

000006 CH Equity 深振业Ａ Shenzhen Zhenye Group Co Ltd 9.67 13,054 51.30 24.79 21.49 3.00 1.24 Real Estate

000667 CH Equity 美好置业 Myhome Real Estate Development Group Co Ltd 4.09 10,469 18.09 17.78 13.63 1.71 0.61 Real Estate

000036 CH Equity 华联控股 China Union Holdings Ltd 9.04 10,320 18.57 n.a. n.a. 4.12 n.a. Real Estate

002305 CH Equity 南国置业 Langold Real Estate Co Ltd 5.73 9,922 53.86 21.79 17.10 2.20 n.a. Real Estate

000797 CH Equity 中国武夷 China Wuyi Co Ltd 18.21 9,101 114.54 130.07 50.58 4.46 n.a. Real Estate

002016 CH Equity 世荣兆业 Guangdong Shirongzhaoye Co Ltd 10.63 8,601 76.58 44.29 31.26 4.81 n.a. Real Estate

000616 CH Equity 海航投资 HNA Investment Group Co Ltd 5.80 8,295 60.74 31.35 38.67 1.90 0.34 Real Estate

000005 CH Equity 世纪星源 Shenzhen Fountain Corp 7.45 7,886 74.77 n.a. n.a. 6.15 n.a. Real Estate

000897 CH Equity 津滨发展 Tianjin Jinbin Development Co Ltd 4.75 7,682 n.a. n.a. n.a. 5.89 n.a. Real Estate

000506 CH Equity 中润资源 Zhongrun Resources Investment Corp 8.20 7,618 129.94 n.a. n.a. 4.92 n.a. Real Estate

000514 CH Equity 渝开发 Chongqing Yukaifa Co Ltd 8.89 7,501 n.a. n.a. n.a. 2.66 n.a. Real Estate

000931 CH Equity 中关村 Beijing Centergate Technologies Holding Co Ltd 8.77 5,918 n.a. n.a. n.a. 6.95 n.a. Real Estate

15

Figure 2j: Eligible stocks for SZ-HK Connect (northbound)



(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

002721 CH Equity 金一文化 Beijing Kingee Culture Development Co Ltd n.a. n.a. n.a. 42.17 30.79 n.a. 0.21 Retail

002024 CH Equity 苏宁云商 Suning Commerce Group Co Ltd 11.70 108,927 160.74 1,671 344.12 1.70 0.51 Retail

000564 CH Equity 西安民生 Xi'an Minsheng Group Co Ltd 9.28 55,753 130.07 464.00 309.33 2.00 n.a. Retail

002640 CH Equity 跨境通 Global Top E-Commerce Co Ltd 20.15 28,797 230.37 71.99 36.00 6.49 0.13 Retail

000516 CH Equity 国际医学 Xian International Medical Investment Co Ltd 7.41 14,605 55.98 57.00 49.40 4.20 0.27 Retail

000796 CH Equity 凯撒旅游 Hna-Caissa Travel Group Co Ltd 17.35 13,932 46.36 50.00 37.88 7.32 n.a. Retail

002631 CH Equity 德尔未来 Der Future Science & Technology Holding Group Co Ltd 21.09 13,705 86.59 56.54 35.93 9.77 0.12 Retail

002251 CH Equity 步步高 Better Life Commercial Chain Share Co Ltd 17.19 13,391 90.11 61.61 59.07 2.69 0.87 Retail

002344 CH Equity 海宁皮城 Haining China Leather Market Co Ltd 11.90 13,328 35.72 22.71 20.52 2.51 0.29 Retail

000501 CH Equity 鄂武商Ａ Wuhan Department Store Group Co Ltd 21.46 12,701 12.08 13.31 11.46 2.13 n.a. Retail

002419 CH Equity 天虹商场 Rainbow Department Store Co Ltd 14.89 11,915 8.85 24.65 22.70 2.19 3.69 Retail

002727 CH Equity 一心堂 Yunnan Hongxiang Yixintang Pharmaceutical Co Ltd 22.03 11,469 30.27 n.a. n.a. 4.73 1.13 Retail

002277 CH Equity 友阿股份 Hunan Friendship & Apollo Cmmericial Co Ltd 14.48 10,256 34.44 29.08 25.27 2.11 0.69 Retail

300005 CH Equity 探路者 Toread Holdings Group Co Ltd 16.69 9,917 39.49 50.42 36.76 3.62 n.a. Retail

002345 CH Equity 潮宏基 Guangdong Chj Industry Co Ltd 11.35 9,592 37.23 35.69 31.10 3.62 0.88 Retail

000882 CH Equity 华联股份 Beijing Hualian Department Store Co Ltd 4.24 9,439 84.17 61.45 26.50 1.49 1.51 Retail

000889 CH Equity 茂业通信 Maoye Communication and Network Co Ltd 14.70 9,141 43.25 n.a. n.a. 3.80 0.17 Retail

002697 CH Equity 红旗连锁 Chengdu Hongqi Chain Co Ltd 6.70 9,112 57.07 44.67 37.43 4.20 1.49 Retail

002614 CH Equity 蒙发利 Xiamen Comfort Science & Technology Group Co Ltd 15.91 8,829 41.55 n.a. n.a. 3.52 0.63 Retail

002301 CH Equity 齐心集团 Shenzhen Comix Group Co Ltd 22.78 8,511 79.53 n.a. n.a. 7.13 n.a. Retail

002612 CH Equity 朗姿股份 Lancy Co Ltd 21.07 8,428 74.81 70.23 58.04 3.50 0.95 Retail

000417 CH Equity 合肥百货 Hefei Department Store Group Co Ltd 9.45 7,370 26.76 27.16 25.54 2.09 1.27 Retail

002574 CH Equity 明牌珠宝 Zhejiang Ming Jewelry Co Ltd 12.80 6,758 174.17 142.22 98.46 2.19 0.39 Retail

300296 CH Equity 利亚德 Leyard Optoelectronic Co Ltd 32.95 26,829 54.62 48.81 29.08 6.55 0.21 Semiconductors

300324 CH Equity 旋极信息 Beijing Watertek Information Technology Co Ltd 21.94 21,939 73.05 50.67 36.14 14.35 0.10 Semiconductors

002185 CH Equity 华天科技 Tianshui Huatian Technology Co Ltd 13.18 14,044 39.48 31.53 24.96 2.92 0.35 Semiconductors

300316 CH Equity 晶盛机电 Zhejiang Jingsheng Mechanical & Electrical Co Ltd 12.53 12,343 68.63 85.24 56.19 5.81 0.48 Semiconductors

002056 CH Equity 横店东磁 Hengdian Group DMEGC Magnetics Co Ltd 14.66 12,048 33.29 n.a. n.a. 3.16 0.68 Semiconductors

002156 CH Equity 通富微电 Nantong Fujitsu Microelectronics Co Ltd 11.86 11,535 77.54 35.51 27.14 3.01 0.19 Semiconductors

002288 CH Equity 超华科技 Guangdong Chaohua Technology Co Ltd 11.36 10,583 12,228 n.a. n.a. 6.07 0.03 Semiconductors

300373 CH Equity 扬杰科技 Yangzhou Yangjie Electronic Technology Co Ltd 21.56 10,187 50.06 47.38 33.69 5.17 0.28 Semiconductors

300053 CH Equity 欧比特 Zhuhai Orbita Control Engineering Co Ltd 16.18 9,350 161.18 73.55 47.59 7.33 0.07 Semiconductors

002079 CH Equity 苏州固锝 Suzhou Good-Ark Electronics Co Ltd 10.35 7,535 84.16 90.00 66.77 5.21 0.19 Semiconductors

300047 CH Equity 天源迪科 Shenzhen Tianyuan Dic Information Technology Co Ltd n.a. n.a. n.a. 54.82 39.56 n.a. 0.10 Software

300496 CH Equity 中科创达 Thunder Software Technology Co Ltd n.a. n.a. n.a. 157.00 72.31 n.a. 0.24 Software

002236 CH Equity 大华股份 Zhejiang Dahua Technology Co Ltd 14.23 41,259 26.39 18.08 13.37 5.50 0.56 Software

002230 CH Equity 科大讯飞 Iflytek Co Ltd 29.66 38,373 101.84 73.42 56.82 5.96 0.34 Software

002280 CH Equity 联络互动 Hangzhou Liaison Interactive Information Technology Co Ltd 17.62 38,361 94.32 71.34 48.94 6.35 0.34 Software

300418 CH Equity 昆仑万维 Beijing Kunlun Tech Co Ltd 26.49 29,858 71.59 42.73 37.31 11.07 0.40 Software

002153 CH Equity 石基信息 Beijing Shiji Information Technology Co Ltd 25.58 27,288 70.17 60.19 48.72 5.63 0.16 Software

002517 CH Equity 恺英网络 Kingnet Network Co Ltd 37.70 27,050 21.22 38.67 29.69 8.30 n.a. Software

300168 CH Equity 万达信息 Wonders Information Co Ltd 24.57 25,334 99.65 84.72 60.52 12.07 0.28 Software

002174 CH Equity 游族网络 Youzu Interactive Co Ltd 28.46 24,513 45.33 43.12 35.14 9.82 0.21 Software

002195 CH Equity 二三四五 Shanghai 2345 Network Holding Group Co Ltd 12.16 23,501 45.58 41.93 32.86 3.65 0.41 Software

002405 CH Equity 四维图新 NavInfo Co Ltd 21.35 22,770 158.92 112.37 70.00 8.34 0.17 Software

300002 CH Equity 神州泰岳 Beijing Ultrapower Software Co Ltd 10.35 20,297 39.50 30.44 24.35 4.09 0.48 Software

000676 CH Equity 智度股份 Genimous Technology Co Ltd 19.73 19,053 69.09 n.a. n.a. 4.31 n.a. Software

300253 CH Equity 卫宁健康 Winning Health Technology Group Co Ltd 23.26 18,921 35.92 37.70 61.21 8.60 0.25 Software

300010 CH Equity 立思辰 Beijing Lanxum Technology Co Ltd 20.27 17,649 84.34 61.42 43.59 3.38 n.a. Software

002410 CH Equity 广联达 Glodon Co Ltd 15.73 17,608 49.71 39.42 29.74 6.43 1.28 Software

300458 CH Equity 全志科技 All Winner Technology Co Ltd 103.50 17,246 116.29 69.23 47.96 10.80 0.19 Software

002657 CH Equity 中科金财 Sinodata Co Ltd 49.45 16,693 94.72 78.87 58.31 6.14 0.08 Software

300166 CH Equity 东方国信 Beijing Orient National Communication Science & Technology Co Ltd 23.77 15,565 52.25 46.25 32.61 4.17 n.a. Software

300377 CH Equity 赢时胜 Shenzhen Ysstech Info-tech Co Ltd 43.94 13,051 135.78 120.38 79.89 5.16 0.34 Software

300212 CH Equity 易华录 Beijing E-Hualu Information Technology Co Ltd 34.00 12,573 81.95 66.15 46.58 5.04 0.29 Software

300271 CH Equity 华宇软件 Beijing Thunisoft Corp Ltd 19.40 12,489 48.98 43.40 32.72 7.29 0.26 Software

300300 CH Equity 汉鼎宇佑 Hakim Unique Internet Co Ltd 25.62 11,770 226.42 n.a. n.a. 5.37 0.23 Software

300302 CH Equity 同有科技 Toyou Feiji Electronics Co Ltd 27.61 11,637 106.50 73.63 46.80 17.72 0.09 Software

300379 CH Equity 东方通 Beijing Tongtech Co Ltd 83.69 11,555 103.91 83.19 65.95 6.85 0.15 Software

002073 CH Equity 软控股份 Mesnac Co Ltd 11.49 10,785 749.32 n.a. 82.07 2.28 0.24 Software

002279 CH Equity 久其软件 Beijing Join-Cheer Software Co Ltd 18.97 10,272 58.89 48.64 38.71 5.08 0.21 Software

002104 CH Equity 恒宝股份 Hengbao Co Ltd 13.99 9,982 37.45 n.a. n.a. 6.13 0.71 Software

002474 CH Equity 榕基软件 Fujian Rongji Software Co Ltd 15.98 9,943 801.28 n.a. n.a. 7.15 n.a. Software

300229 CH Equity 拓尔思 Beijing TRS Information Technology Co Ltd 20.09 9,475 77.39 57.40 45.66 5.95 0.25 Software

002161 CH Equity 远望谷 Invengo Information Technology Co Ltd 12.75 9,432 n.a. n.a. n.a. 5.95 0.05 Software

002063 CH Equity 远光软件 YGSOFT Inc 15.19 9,214 95.60 60.04 39.97 5.26 0.33 Software

300348 CH Equity 长亮科技 Shenzhen Sunline Tech Co Ltd 30.18 8,818 91.34 118.35 90.09 11.06 0.13 Software

300036 CH Equity 超图软件 Beijing SuperMap Software Co Ltd 19.32 8,686 94.60 68.03 43.32 5.65 0.26 Software

300075 CH Equity 数字政通 Beijing eGOVA Co Ltd 22.15 8,675 62.99 46.34 36.73 6.26 0.18 Software

300467 CH Equity 迅游科技 Sichuan Xun You Network Technology Co Ltd 51.90 8,658 136.58 111.61 91.86 19.09 n.a. Software

300451 CH Equity 创业软件 B-Soft Co Ltd 39.34 8,301 143.93 70.63 49.99 13.41 0.13 Software

300096 CH Equity 易联众 YLZ Information Technology Co Ltd 19.30 8,299 205,319 64.33 35.74 11.87 0.03 Software

300378 CH Equity 鼎捷软件 Digiwin Software Co Ltd 27.16 7,155 514.62 77.60 50.58 6.18 0.28 Software

300205 CH Equity 天喻信息 Wuhan Tianyu Information Industry Co Ltd 16.14 6,941 220.89 n.a. n.a. 6.19 0.31 Software

002253 CH Equity 川大智胜 Wisesoft Co Ltd 30.09 6,789 193.38 141.27 100.30 5.36 0.44 Software

300295 CH Equity 三六五网 Everyday Network Co Ltd 34.32 6,591 47.52 42.90 33.32 6.53 n.a. Software

002090 CH Equity 金智科技 Wiscom System Co Ltd 27.27 6,319 59.98 37.51 22.88 5.59 0.55 Software

002296 CH Equity 辉煌科技 Henan Splendor Science & Technology Co Ltd 16.57 6,241 65.45 50.98 40.41 4.17 0.18 Software

002232 CH Equity 启明信息 Qiming Information Technology Co Ltd 13.83 5,650 446.16 n.a. n.a. 5.62 0.01 Software

16

Figure 2k: Eligible stocks for SZ-HK Connect (northbound)



(RMB)

Market cap

(RMB m) PER (x)

2016E

PER (x)

2017E

PER (x)

PBR

(x)

Dividend

yield (%)

Sector

000547 CH Equity 航天发展 Addsino Co Ltd n.a. n.a. n.a. 58.11 45.97 n.a. 0.29 Telecommunications

300311 CH Equity 任子行 Surfilter Network Technology Co Ltd n.a. n.a. n.a. 62.38 48.20 n.a. 0.11 Telecommunications

000063 CH Equity 中兴通讯 ZTE Corp 17.54 68,140 23.06 19.19 16.95 2.35 1.43 Telecommunications

002074 CH Equity 国轩高科 Guoxuan High-Tech Co Ltd 32.56 28,534 27.81 24.10 17.99 7.72 0.46 Telecommunications

300136 CH Equity 信维通信 Shenzhen Sunway Communication Co Ltd 27.48 26,403 65.07 51.46 32.60 15.29 0.11 Telecommunications

002465 CH Equity 海格通信 Guangzhou Haige Communications Group Inc Co 12.06 25,878 42.65 32.77 24.97 4.04 1.24 Telecommunications

000555 CH Equity 神州信息 Digital China Information Service Co Ltd 26.24 24,083 82.04 56.07 43.16 7.22 0.15 Telecommunications

002583 CH Equity 海能达 Hytera Communications Corp Ltd 13.78 23,818 81.35 52.40 33.37 5.39 0.24 Telecommunications

300134 CH Equity 大富科技 Shenzhen Tat Fook Technology Co Ltd 29.47 22,618 245.26 73.68 62.70 3.84 0.58 Telecommunications

002416 CH Equity 爱施德 Shenzhen Aisidi Co Ltd 16.35 16,885 93.96 n.a. n.a. 3.20 n.a. Telecommunications

002151 CH Equity 北斗星通 Beijing BDStar Navigation Co Ltd 31.90 16,153 113.96 n.a. n.a. 3.76 0.31 Telecommunications

002544 CH Equity 杰赛科技 GCI Science & Technology Co Ltd 30.09 15,519 147.65 115.73 91.18 12.47 0.10 Telecommunications

002261 CH Equity 拓维信息 Talkweb Information System Co Ltd 12.93 14,371 60.65 34.48 27.81 3.88 0.15 Telecommunications

002383 CH Equity 合众思壮 Beijing UniStrong Science & Technology Co Ltd 53.87 13,165 168.91 98.84 63.38 3.83 n.a. Telecommunications

300183 CH Equity 东软载波 Qingdao Eastsoft Communication Technology Co Ltd 27.96 12,673 40.52 36.79 29.43 5.27 0.72 Telecommunications

300310 CH Equity 宜通世纪 Guangdong Eastone Century Technology Co Ltd 28.45 12,630 78.59 55.24 42.46 5.44 0.11 Telecommunications

002093 CH Equity 国脉科技 Guomai Technologies Inc 11.70 10,121 148.12 106.36 65.00 7.28 n.a. Telecommunications

000035 CH Equity 中国天楹 China Tianying Inc 8.12 10,057 41.32 34.85 26.45 5.07 n.a. Telecommunications

002467 CH Equity 二六三 263 Network Communications Co Ltd 12.48 9,945 143.83 34.86 30.59 4.35 0.32 Telecommunications

002194 CH Equity 武汉凡谷 Wuhan Fingu Electronic Technology Co Ltd 17.40 9,825 1,611.11 102.35 75.65 4.56 0.06 Telecommunications

002052 CH Equity 同洲电子 Shenzhen Coship Electronics Co Ltd 12.11 9,034 n.a. n.a. n.a. 6.51 n.a. Telecommunications

000070 CH Equity 特发信息 Shenzhen SDG Information Co Ltd 28.16 8,828 52.76 40.81 24.28 5.29 0.11 Telecommunications

000851 CH Equity 高鸿股份 Gohigh Data Networks Technology Co Ltd 12.96 7,664 80.89 73.22 58.91 2.87 0.15 Telecommunications

300322 CH Equity 硕贝德 Huizhou Speed Wireless Technology Co Ltd 18.53 7,551 n.a. 74.12 50.08 12.84 n.a. Telecommunications

300081 CH Equity 恒信移动 Hengxin Mobile Business Co Ltd 19.48 6,526 507.46 44.27 30.92 8.36 0.21 Telecommunications

300025 CH Equity 华星创业 Hangzhou Huaxing Chuangye Communication Technology Co Ltd 11.95 5,121 53.84 36.66 26.09 5.98 0.22 Telecommunications

000584 CH Equity 友利控股 Jiangsu Youli Investment Holding Co Ltd n.a. n.a. n.a. n.a. n.a. n.a. n.a. Textiles

000971 CH Equity 高升控股 Gosun Holding Co Ltd 24.32 12,434 120.66 56.56 42.22 3.57 n.a. Textiles

002516 CH Equity 旷达科技 Kuangda Technology Group Co Ltd 6.90 10,376 28.63 25.84 18.40 3.56 0.36 Textiles

002042 CH Equity 华孚色纺 Huafu Top Dyed Melange Yarn Co Ltd 11.37 9,471 21.33 21.95 18.58 2.39 0.88 Textiles

002206 CH Equity 海利得 Zhejiang Hailide New Material Co Ltd 17.84 8,692 31.88 28.50 21.65 3.15 2.35 Textiles

002064 CH Equity 华峰氨纶 Zhejiang Huafeng Spandex Co Ltd 5.07 8,501 n.a. n.a. 28.17 2.87 0.39 Textiles

002254 CH Equity 泰和新材 Yantai Tayho Advanced Materials Co Ltd 13.18 8,051 137.90 125.52 90.90 4.05 n.a. Textiles

002083 CH Equity 孚日股份 Sunvim Group Co Ltd 7.39 6,710 19.91 18.48 16.17 2.20 2.71 Textiles

000850 CH Equity 华茂股份 Anhui Huamao Textile Co 6.35 5,992 213.74 n.a. n.a. 1.31 1.57 Textiles

002292 CH Equity 奥飞娱乐 Alpha Group 27.02 35,339 64.70 54.48 43.09 7.51 0.15 Toys/Games/Hobbies

300043 CH Equity 星辉娱乐 Rastar Group 11.90 14,806 31.12 32.78 27.67 6.54 n.a. Toys/Games/Hobbies

002502 CH Equity 骅威文化 Huawei Culture Co Ltd 14.02 12,055 51.04 36.70 29.09 3.70 n.a. Toys/Games/Hobbies

002348 CH Equity 高乐股份 Goldlok Toys Holdings Guangdong Co Ltd 7.94 7,521 158.72 122.15 105.87 6.10 0.31 Toys/Games/Hobbies

002010 CH Equity 传化股份 Transfar Zhilian Co Ltd 19.30 62,876 63.31 106.04 84.65 5.66 0.52 Transportation

000089 CH Equity 深圳机场 Shenzhen Airport Co Ltd 8.97 18,395 30.96 30.61 24.85 1.75 0.65 Transportation

002210 CH Equity 飞马国际 Shenzhen Feima International Supply Chain Co Ltd 17.46 16,976 94.47 n.a. n.a. 6.79 0.26 Transportation

000088 CH Equity 盐田港 Shenzhen Yan Tian Port Holding Co Ltd 7.80 15,149 44.99 32.50 30.00 2.64 0.32 Transportation

300284 CH Equity 苏交科 JSTI Group 22.97 12,750 36.12 32.72 24.75 4.51 0.52 Transportation

002711 CH Equity 欧浦智网 Europol Intelligent Network Co Ltd 14.25 9,406 41.41 31.95 28.50 6.37 0.17 Transportation

002320 CH Equity 海峡股份 Hainan Strait Shipping Co Ltd 17.61 7,500 49.68 55.03 55.03 3.15 0.15 Transportation

000712 CH Equity 锦龙股份 Guangdong Golden Dragon Development Inc 24.88 22,292 51.19 n.a. n.a. 6.24 0.40 Water

000598 CH Equity 兴蓉环境 Chengdu Xingrong Environment Co Ltd 6.28 18,753 21.60 20.93 18.10 2.12 0.66 Water

000685 CH Equity 中山公用 Zhongshan Public Utilities Group Co Ltd 11.83 17,451 16.76 17.84 16.21 1.59 2.54 Water

17

INDUSTRY NEWS

MACAU DEALINGS – NOVEMBER GGR

Analyst: Johnson Cheung ([email protected]: Tel 852-3698-625)

Macau’s Gross Gaming Revenue (GGR) in November was MOP18.7bn, up 14.4%YoY, which is the highest num-

ber since YoY growth turned positive in August (Figure 1). This recovery, which is driven by the new casino

openings, seems to be broad-based, with the VIP and mass segments both showing improvement. After the

unexpectedly strong rally, the sector’s valuation now appears more expensive. We expect GGR to rise by 9%

YoY in 2017, but these companies have significant operating leverage. We like Galaxy Entertainment, given its

valuation and strong execution in Cotai.

The aggregate GGR for 11M2016 was still down 4.3% YoY because of the drop in 1H16. In absolute terms, the GGR is

still down 14% from October, which is typical. The MOP18bn−19bn level is also comparable to what we have seen in

August−September. This is in line with what we projected, but less than what some analysts predicted.

Figure 1: Macau Gross Gaming Revenue Shows Recovery

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

Gaming Revenue YoY Growth

YoY Growth (%)

YoY (%)

Source: Gaming Inspection, and Coordination Bureau, Macao SAR

December 2, 2016

mailto:[email protected]

18

We are positive on the outlook for 2017; we forecast that GGR will grow by 9%YoY in 2017 for these reasons:

Although GGR is recovering, it is still 30% below the MOP30bn levels achieved in 2013/14.

According to the official numbers, in 9M2016, VIP baccarat was down 13%, while the mass segment was down 1%

(the casinos’ tally would show mass gaming growing even faster at the expense of VIP). This is positive for the casi-

nos,

The vast increase in hotel room supply, with MGM Cotai adding another 1,700 rooms, should foster higher tourist

arrivals and longer average stays. Mass segment gaming wins have grown steadily at 3%−5%YoY.

The sector has moved up almost 18% in November. The top gainer is MGM China, which delivered handsome 3Q16 results. Other

beneficiaries are the operators with new casino openings. We also like Galaxy Entertainment, given its financial position and rea-

sonable valuation.

Figure 2: Monthly Gross Gaming Revenue

15.0

20.0

25.0

30.0

35.0

40.0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 2014 2015 2016

MOP (bn)

Source: Gaming Inspection, and Coordination Bureau. Macao SAR

Figure 3: YoY Growth Rates for VIP and Mass Gaming Revenue

Casino Operators Bloomberg Price Mkt. Cap. EV/EBITDA PER (x) PB Price change (%)

Name Code 12/1/2016 (US$ mil) FY16E FY17E FY18E FY15 FY16E FY17E FY18E FY16 1-Day MTD QTD YTD

SANDS CHINA LTD* 1928 hk 38 39,541 20.7 18.2 17.4 27.1 29.0 24.9 22.2 7.6 (1) 13 13 43

GALAXY ENT 27 hk 37.5 20,650 13.4 12.8 12.6 38.4 23.1 23.2 22.8 1.2 (3) 18 28 53

WYNN MACAU LTD 1128 hk 13.78 9,231 23.0 16.1 15.8 29.7 38.0 32.2 31.7 4.4 (4) 16 7 52

MGM CHINA* 2282 hk 16.92 8,290 19.8 18.2 13.0 20.6 23.9 31.9 20.8 9.5 (2) 32 26 74

SJM HOLDINGS* 880 hk 6.34 4,624 7.5 13.3 9.8 14.5 17.4 25.9 23.5 1.5 1 18 11 15

MELCO CROWN ENT* Mpel us 19.66 9,672 12.9 12.0 10.9 100.8 50.2 43.0 32.1 2.8 0 17 22 17

MEDIAN 16.6 14.7 12.8 28.4 26.5 28.9 23.2 3.6 (1) 18 17 48

Sources: Bloomberg, CGIS estimates. *Consensus numbers

19

COMPANY / INDUSTRY NEWS

Analyst: Mark Po, CFA; Tel: (852) 3698 6318; [email protected]

INDUSTRY UPDATE – Key takeaways from results presentation of leading textile & garment names.

Key takeaways from results presentation of leading textile & garment names. The leading textile & garment names, including Nameson [1982.HK],

Pacific Textile [1382.HK], Regina Miracle [2199.HK] and Texwinca [0321.HK], reported 1H FY17 results in last two weeks. The US market is one of the

weakest markets, especially in the mass-market segment. China is a growing market for the textile & garment names. The existing expansion plans of HK-

listed textile & garment names in Vietnam will go ahead because of cost benefits, risk diversification and duty-free access to other markets. We believe

that the recent share price correction of textile & garment names caused by concerns about President-elect Donald Trump’s potential trade policy is over-

done and that it would be difficult to rebuild the upstream textile industry in the US.

Nameson’s 1H FY17 turnover grew 0.9% YoY to HK$1,772m, and its adjusted net profit for 1H17 was HK$226.8m, up 24.2% YoY, which is attributable

mainly to gross margin improvement. Nameson’s gross profit margin (GPM) increased 3.3ppts YoY to 23.8% in 1H FY17, which is a result of (a) higher

operating efficiency of phase I of its Vietnam production plant, and (b) RMB depreciation. Sales to North America were down 27.6% YoY, which was offset

by strong growth of 79% YoY in sales to the Chinese market. Nameson declared an interim dividend of HK$0.038 per share, representing a 35% payout

ratio. The utilization rate of phase I of Nameson’s Vietnam production facility reached 86% in 1H 2017. Phase 2 of the production plant is expected to

commence operation in 2H of FY17, and a full contribution is expected in FY18. Phase I and II of the production facilities in Vietnam combined will raise

Nameson’s total production capacity by 17m units of knitwear, on top of the current annual capacity of 29.9m units in its Huizhou factory. The production

facilities in Vietnam are the growth driver for Nameson. Nameson secured orders from a US casual wear brand in 1H FY17, which has grown to become

its fifth-largest client. Orders from this client are expected to pick up substantially in FY18 when its one-year trial period expires. Nameson management

also looking to diversify its product and customer mix.

Regina Miracle’s (RM) 1H FY17 net profit dropped 89.3% YoY to HK$23m; turnover also dropped 14.4% YoY to HK$2.1bn. RM’s weak 1H FY17 results

were due to a decline in orders as a result of key customers' strategic business shift and inventory problems. RM’s sales in the intimate wear, bra pads

and function sports segments were down by 2%, 45% and 37% YoY, respectively, in 1H F17. RM’s GPM and OPM were down by 5.3 ppt and 9.7 ppt to

18.7% and 1.5%, respectively, because of (a) drop in the utilization rate of its Shenzhen plant and dilution from the Vietnam plant's ramp-up. RM manage-

ment mentioned that that order growth from its key clients (L Brands and Under Armour) has been recovering, especially since the completion of their

inventory clearance. RM management expects the operating environment in 2H FY17 to be more stable compared to the high volatility in customer orders

in 1H FY17. However, management sees a production capacity bottleneck at its Shenzhen plant given problems recruiting an adequate number of skilled

workers. RM’s expansion in Vietnam is in line with management expectations. Factory A has a near-full worker count of 21,500, while factory B is ready

for trial production in Q4 2016. RM expects to realize cost savings and tax benefits from the Vietnam plant in FY18 after factory A's efficiency ramp-up and

factory B becomes operational. RM management also highlighted its continuous efforts to expand its customer base, which is less concentrated than be-

fore.

Pacific Textiles’ (PT) 1H FY17 net profit dropped 27% YoY to HK$455m. Excluding a HK$51m disposal gain in 1H FY16, PT’s adjusted net profit fell 21%

YoY which was less than its profit warning of a 25% core operating profit decline. PT’s net profit drop was attributed to a 20% YoY decline in turnover,

while its margin was stable YoY. The sales decline was attributed to a sharp 40% decline in department store orders (mass market segment), while appar-

el brand sales were stable. Despite the weak 1H FY17 sales, PT management expects to achieve flat turnover for FY17, implying over 25% sales growth

in 2H FY17. PT management highlighted that the US mass market segment is still challenging, as both volume and ASP are under pressure. However, the

leading US brands, such as Victoria Secret, Under Armour and Calvin Klein, are doing better. Orders from Uniqlo are very encouraging, and PT is likely to

get bigger orders for Uniglo’s Heatech products in 2017, improving from flat volume orders in 2016. The utilization rate of its production facilities is about

87%. The expansion in Vietnam (from 80k pounds to 100k pounds) has been delayed pending approval by the government. The capacity will come on

stream in 2018 instead of by the end of 2017. The GPM margin in Oct 2016 returned to 18.2%, up from 17.9% in 1H FY1; Nov 2016 should see a similar

GPM.

Texwinca’s 1H FY17 net profit declined 12% YoY to HK$351m on a 20% YoY drop in sales to HK$3.9bn. Excluding a one-off disposal gain, Texwinca’s

core EBIT reported a 28% YoY decline to HK$267m. Texwinca’s sales volume declined 27.9% YoY in 1H FY17, while its ASP increased by a modest

1.3% YoY on higher cotton prices. The drop in sales volume was due mainly to weak orders from US-based fashion apparel customers. Texwinca man-

agement highlighted that volume orders picked up slightly in Sep but order visibility for 2H FY17 remains low. Texwinca’s utilization rate stood at over 80%

in 1H FY17 (vs. ~90% in 1HFY16). Management aims to maintain a stable margin (GPM was 21.2% in 1H FY17) by giving up low-margin orders, if neces-

sary.

We maintain the view that Texhong Textile Group (Texhong) is one of the major beneficiaries of resilient demand for cotton yarn (especially core-spun

yarn) in China. The stabilization of cotton prices will create a stable cost environment for Texhong, which should continue to deliver solid growth in the

next few years on the back of its capacity-expansion plan and its cost advantage over its competitors in the domestic Chinese market. Texhong is trading

at 7.9x 2016 PER, which is still very attractive, given its solid operations, expansion in Vietnam, and clearer outlook. We have a BUY rating on Texhong

with a target price of HK$13.92 (based on 9.5x 2016E PER, lower than its historical average and the 16.2x average of its HK-listed peers).

December 02, 2016

20

COMPANY / INDUSTRY NEWS INDUSTRY UPDATE – Key takeaways from results presentation of leading textile & garment names.

Figure 1: Peer Comparison

Sources: Bloomberg, Company, CGIS Research estimates for covered stocks

Ticker Company PE EV/EBITDA

Price Market Cap 2016F 2017F 2018F 2016F 2017F 2018F 2015 2016F 2015 2016F 2015 2016F 2015 2016F

Lcy US$m x x x x x x x x % % % % % %

HK Listed Textile & Garment Plays

Machinery

641 HK Chtc Fong'S Industries 1.81 257 n.a. n.a. n.a. n.a. n.a. n.a. 1.5 n.a. 12.5 n.a. 5.4 n.a. 3.3 n.a.

Average n.a. n.a. n.a. n.a. n.a. n.a. 1.5 n.a. 12.5 n.a. 5.4 n.a. 3.3 n.a.

Yarn manufacturing

2678 HK Texhong Textile Group Ltd 11.52 1,359 7.9 6.6 n.a. 4.5 4.2 n.a. 2.3 1.9 15.9 26.0 5.7 10.1 2.0 3.9

2111 HK Best Pacific International H 6.44 854 15.3 13.0 10.4 9.8 8.1 6.7 3.8 3.3 20.4 23.1 12.0 13.9 2.1 2.6

2698 HK Weiqiao Textile Co Ltd-H 5.07 781 4.6 3.4 n.a. 2.2 1.6 n.a. 0.3 0.3 5.9 6.7 3.5 4.2 5.6 7.5

Average 9.3 8.0 8.5 6.0 5.1 6.0 2.1 1.8 14.1 18.7 7.4 9.3 3.4 4.6

Textile manufacturing

321 HK Texwinca Holdings Ltd 5.69 1,014 13.1 12.5 12.1 6.5 6.0 5.8 1.3 1.3 12.8 10.0 9.6 6.6 8.1 9.2

420 HK Fountain Set Hldgs 0.99 154 n.a. n.a. n.a. n.a. n.a. n.a. 0.4 n.a. n.a. n.a. 2.6 n.a. n.a. n.a.

1382 HK Pacific Textiles Holdings 9.00 1,678 12.8 11.7 10.9 9.2 8.5 8.3 3.9 3.9 28.9 30.5 20.2 20.4 8.9 7.9

539 HK Victory City Intl Hldgs Ltd 0.27 146 n.a. n.a. n.a. n.a. n.a. n.a. 0.1 n.a. 7.7 n.a. 2.3 n.a. 17.7 n.a.

2313 HK Shenzhou International 47.75 8,613 20.7 17.4 14.9 14.0 11.9 10.3 4.4 4.1 18.9 21.5 14.7 16.0 1.6 2.7

565 HK Art Textile Technology Intl 0.77 267 n.a. n.a. n.a. n.a. n.a. n.a. 1.6 n.a. -1.1 n.a. 13.9 n.a. 0.0 n.a.

2307 HK Kam Hing International Holdi 0.53 59 n.a. n.a. n.a. n.a. n.a. n.a. 0.2 n.a. 2.9 n.a. 1.0 n.a. 2.8 n.a.

Average 14.0 12.4 11.6 8.9 7.9 7.6 1.8 2.8 12.0 20.2 9.0 13.1 6.1 6.1

Garment manufacturing

311 HK Luen Thai Holdings 3.15 420 17.7 13.5 n.a. 7.2 6.4 n.a. 1.1 1.0 3.4 6.1 2.0 3.5 1.6 2.5

2199 HK Regina Miracle International 7.56 1,193 48.5 22.5 13.6 19.5 11.8 8.2 3.5 3.3 31.3 7.2 11.5 4.2 0.7 0.5

393 HK Glorious Sun Enterprises Ltd 0.97 192 n.a. n.a. n.a. n.a. n.a. n.a. 0.6 n.a. 4.2 n.a. 2.3 n.a. 7.0 n.a.

333 HK Top Form International Ltd. 1.81 50 n.a. n.a. n.a. n.a. n.a. n.a. 0.7 n.a. 6.1 n.a. 4.4 n.a. 5.5 n.a.

2368 HK Eagle Nice (Intl) Hldgs Ltd 2.17 140 8.3 7.5 7.2 n.a. n.a. n.a. 1.0 1.0 10.0 12.0 8.0 8.0 10.8 8.8

3398 HK China Ting Group Hldgs Ltd 0.48 130 n.a. n.a. n.a. n.a. n.a. n.a. 0.4 n.a. -1.6 n.a. 0.3 n.a. 0.0 n.a.

1388 HK Embry Holdings Ltd 3.59 193 n.a. n.a. n.a. n.a. n.a. n.a. 0.8 n.a. 11.4 n.a. 5.7 n.a. 3.2 n.a.

1982 HK Nameson Holdings Ltd 1.66 444 10.8 8.8 7.4 7.2 6.0 5.4 n.a. 2.1 23.9 27.6 11.0 13.8 0.0 3.4

Average 21.3 13.1 9.4 11.3 8.1 6.8 1.2 1.9 11.1 13.2 5.6 7.4 3.6 3.8

17.6 12.7

A share Listed Textile Plays

601233 CH Tongkun Group Co Ltd-A 13.87 2,478 23.9 12.6 8.8 7.8 6.7 n.a. 1.6 1.9 1.7 8.1 3.5 3.8 n.a. 1.2

200726 CH Luthai Textile Co Ltd - B 9.73 1,506 10.3 9.1 8.0 8.2 7.4 6.8 1.2 1.1 10.6 10.6 8.4 8.1 n.a. 6.6

000850 CH Anhui Huamao Textile Co-A 6.35 869 n.a. n.a. n.a. n.a. n.a. n.a. 1.3 n.a. 1.8 n.a. 0.4 n.a. n.a. n.a.

002042 CH Huafu Top Dyed Melange Yar-A 11.37 1,374 21.9 18.6 15.8 17.9 14.4 11.4 2.4 2.4 9.5 11.1 4.7 4.5 n.a. 0.6

002394 CH Jiangsu Lianfa Textile Co-A 18.34 861 16.1 14.8 13.5 n.a. n.a. n.a. 2.2 2.0 11.2 12.4 7.7 8.3 n.a. 2.2

600483 CH Fujian Funeng Co Ltd-A 12.00 2,701 17.4 15.2 13.0 9.1 8.3 6.6 4.7 2.2 17.1 13.3 6.7 6.1 n.a. 1.8

601339 CH Bros Eastern Co Ltd-A 6.56 1,427 20.2 17.0 15.6 n.a. n.a. n.a. 1.4 1.4 4.9 6.5 4.2 3.3 n.a. 2.3

002015 CH Xiake Color Spinning Co Lt-A 9.24 537 n.a. n.a. n.a. n.a. n.a. n.a. 12.2 n.a. n.a. n.a. 27.5 n.a. n.a. n.a.

002087 CH Henan Xinye Textile Co -A 6.97 826 26.4 21.9 17.4 17.5 15.5 12.2 2.0 1.9 5.9 7.6 2.2 3.2 n.a. 0.7

Average 19.5 15.6 13.2 12.1 10.4 9.3 3.2 1.8 7.8 9.9 7.2 5.3 n.a. 2.2

Other OEM/ODM Names

1477 TT Makalot Industrial Co Ltd 130.00 839 16.0 15.8 13.5 10.6 10.5 9.0 3.2 3.0 25.1 18.6 13.8 13.0 n.a. 5.9

1476 TT Eclat Textile Company Ltd 332.00 2,799 25.0 20.0 16.3 16.3 13.8 11.3 6.5 6.3 39.3 27.1 20.1 19.8 n.a. 2.9

551 HK Yue Yuen Industrial Hldg 28.35 6,027 12.8 11.8 10.9 7.9 7.3 6.8 n.a. 1.3 8.8 10.4 n.a. 6.8 n.a. 4.6

1836 HK Stella International 13.02 1,334 15.7 14.1 12.5 10.6 9.6 8.6 1.4 1.4 12.5 8.5 7.3 6.8 6.5 6.0

105630 KS Hansae Co Ltd 22050.00 755 12.1 10.4 9.2 8.2 6.9 6.2 1.9 1.8 27.3 16.0 7.6 7.7 n.a. 1.1

005390 KS Shinsung Tongsang Co Ltd 1190.00 146 n.a. n.a. n.a. n.a. n.a. n.a. 0.8 n.a. 3.3 n.a. -0.1 n.a. n.a. n.a.

009270 KS Shinwon Corp 1460.00 79 n.a. n.a. n.a. n.a. n.a. n.a. 0.5 n.a. 3.6 n.a. -0.9 n.a. n.a. n.a.

111770 KS Youngone Corp 26700.00 1,013 8.6 7.9 7.0 5.2 4.8 4.4 1.0 0.9 12.1 11.1 5.9 6.2 n.a. 0.7

Average 15.0 13.3 11.6 9.8 8.8 7.7 2.2 2.4 16.5 15.3 7.7 10.0 6.5 3.6

ROA Div yieldP/B ROE

21

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Room 3501-3507, 35/F, Cosco Tower, Grand Millennium Plaza, 183 Queen’s Road Central, Sheung Wan, Hong Kong. General line: 3698-6888.

BUY share price will increase by >20% within 12 months in absolute terms :

SELL share price will decrease by >20% within 12 months in absolute terms :

HOLD no clear catalyst, and downgraded from BUY pending clearer signal to reinstate BUY or further downgrade to outright SELL :

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