Quam Pulse
EQUITIES HONG KONG STRATEGY
INSTITUTIONAL RESEARCH: TRADING PLACES
DATE FRIDAY SEPT 11, 2015
QUAM PULSE Smart Hardware Developers Struggle to Break Homogenization (China Economic Net) – According to iResearch, the scale of the domestic smart hardware market will reach RMB30bn in China this year. There is optimism that with the combination of intelligent hardware technology and traditional home industries, the scale of intelligent hardware market will increase more rapidly and is expected to top RMB100bn in the short term. Intelligent hardware is endowed with leading consumption upgrades from wearable devices to intelligent domestic appliances. Through combination with advanced technologies such as internet of things, big data and cloud computing, intelligent hardware has become the breakthrough point for transformation and upgrading of the traditional domestic appliance manufacturing industry. According to the Academy of Information and Communication Technology, from vertical dimension of industrial application, intelligent hardware will provide RMB3tri of development dividend for the industries. Our Take: Apart from hardware, we saw that enterprises in both up and downstream of the industrial chain have accelerated their speed in forming cooperation relationships, with many traditional enterprises actively introducing intelligent hardware. As such, Qingdao Haier Intelligent Home Appliances Technology Co. Ltd., a subsidiary of Haier Group (1169 HK), has just announced the establishment of a joint-venture with Liaison Interactive Information technology (002280 CH), a company which produces market information system and software, last week. This marks a step forward for Haier to embed advanced smart technology into its home appliances. Haier trades at only 10.3x P/E for 2015E, according to Bloomberg consensus.
HSI TOP MOVERS Leaders Ticker CHEUNG KONG CITIC CHINA RES PO CATHAY PAC A CHINA RES EN
Laggers % 0.53 0.43 -0.53 -0.57 -0.61
Ticker CNOOC PETROCHINA-H CHINA RES LA LENOVO GROUP SANDS CHINA
INDEX
% -6.58 -5.08 -5.02 -4.82 -4.75
1D Chg
1D % Chg
21562.50 9780.16 3357.56 8268.68 1962.11 2888.03 1614.02 25622.17 7788.10
-568.81 -195.37 -41.74 -18.24 27.91 -40.15 10.66 -97.41 -30.50
-2.57 -1.96 -1.23 -0.22 1.44 -1.37 0.66 -0.38 -0.39
1396.16 4343.26 6893.54 5095.02
-0.13 -4.02 -48.93 -126.11
-0.01 -0.09 -0.70 -2.42
Asia HSI HSCEI SHSZ300 TWSE KOSPI FSSTI KLCI SENSEX NIFTY SET JCI PCOMP AS51
COMMODITIES
Close
1D % Chg YTD % Chg
Energy
CHINA TAKEAWAYS China’s Huijin to Issue RMB30bn of Bonds – Central Huijin Investment Ltd., the China-owned investment company, will issue RMB30bn worth of bonds to repay matured bonds. 10 commercial banks, including ICBC, ABC and BOC, will accept these bonds issued by Huijin as underlying assets in bond repurchase transactions. The bonds are divided into three types, 3-year, 5-year and 10-year, with issued amounts of RMB13bn, RMB13bn and RMB40bn respectively. China to Allow Overseas Central Banks to Enter Domestic Forex Market – China will open its foreign exchange market to overseas central banks, making it easier for foreign countries to hold RMB assets, according to Bloomberg. Currently, China has been pushing for RMB to be included in the IMF’s Special Drawing rights basket of reserve currencies. One criterion for qualification in entering into the IMF SDR basket is the currency’s share in the official reserves of other countries.
WTI Brent Natural Gas Gasoline
44.54 47.82 2.68 137.36
0.88 0.50 1.17 1.02
-23.38 -25.47 -11.72 -14.49
246.20 1106.67 14.72 988.35
1.05 -0.11 0.65 0.72
-12.99 -6.56 -6.34 -18.18
Corn Wheat Soybeans Coffee Sugar Cotton
369.25 474.00 875.00 118.65 11.33 63.75
0.07 0.37 0.32 -2.02 -0.87 1.32
-12.29 -22.90 -12.98 -33.06 -27.70 -1.04
Baltic Dry
855.00
-2.06
9.34
Metals Copper Gold (Spot) Silver (Spot) Platinum (Spot)
Agriculture
HSI Daily
Audi Hit Hard by Falling China Sales – Audi sold fewer cars in August than luxury rivals BMW and Mercedes-Benz as Volkswagen’s flagship brand had been harder hit than its German peers by falling demand in China. However Audi said yesterday that its total sales rose 2.7% last month from a year earlier to a record 128,650 cars and sportutility vehicles, helped by double-digit growth in Germany and the United States. Audi’s China deliveries fell for a fourth month but the decline eased to 4.1% from 12.5% in July. Manulife to Acquire StanChart’s MPF and Occupational Retirement Schemes Businesses – StanChart(2888 HK) and Manulife(945 HK) have reached a 15-year distribution partnership agreement to exclusively offer Manulife’s Mandatory Provident Fun(MPF) products to StanChart customers in Hong Kong. By the agreement, Manulife will acquire StanChart’s existing MPF and occupational retirement schemes businesses, and related investment management companies. The deal is expected to complete in the first half of 2016.
Institutional Research Team [email protected] Jennifer So, Head of Research
+852 2971-5433
Christopher Ho, Analyst
+852 2971-5436
1
State-owned China Automaker Teams with US Electric-car Startup Atieva – One of China’s largest state-owned automakers said on Thursday it has opened a technology research center in California’s Silicon Valley and is teaming with U.S. electric-car startup Atieva to develop EV for China and global markets. Beijing Electric Vehicle Co, the affiliate of government-owned BAIC Motor Corp Ltd(1958 HK), said its new tech center outside San Francisco will foucs on development of EVs and eventually self-driving cars.
QUAM INSTITUTIONAL SALES
STANLEY NG
Sales Director
+852 2217 2857
GUY STILLE
Sales
+852 2217 2853
SUSANNA CHU
Associate
+852 2217 2854
[email protected] [email protected] [email protected]
If you w ant to trade w ith us, please feel free to contact our institutional sales team above 18/F China Building, 29 Queen's Road Central, Hong Kong
Disclaimer and Risk Statement This document is published by Quam Securities Company Limited (“Quam Securities”), a licensed corporation (central entity num ber AAC557) regulated by the Securities and Futures Commission in Hong Kong. This document is for distribution in Hong Kong only to persons who are “Professional Investors” as defined in Part 1 of Schedule 1 of Securities and Futures Ordinance (Cap 571) of Hong Kong and any rules made thereunder. This document is not intended for distribution to or use by, any person or entity who is a citizen or resident of any jurisdiction where such distribution or use would be contrary to applicable law or regulation within such jurisdiction. This document does not constitute an offer or a solicitation of an offer to buy or sell any securities. This document is circulated to addresses solely and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. The research is based on information obtained from sources believed to be reliable, but Quam Securities does not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without prior notice. Any recommendation does not have regard to specific investment objectives, financial situation and particular needs of any specific addressee. Quam Securities accepts no liability whatsoever for any direct or consequential loss arising from any use of this document. Quam Securities and its affiliates as well as persons associated with any of them from time to time may or may not have interests in the securities mentioned in this document. The prices of securities may move up or down, and past performance is not an indication of future performance. Investors shall consider seeking separate legal or financial advice before making investment decisions
2
INSTITUTIONAL RESEARCH: TRADING PLACES
DATE FRIDAY SEPT 11, 2015
QUAM PULSE Smart Hardware Developers Struggle to Break Homogenization (China Economic Net) – According to iResearch, the scale of the domestic smart hardware market will reach RMB30bn in China this year. There is optimism that with the combination of intelligent hardware technology and traditional home industries, the scale of intelligent hardware market will increase more rapidly and is expected to top RMB100bn in the short term. Intelligent hardware is endowed with leading consumption upgrades from wearable devices to intelligent domestic appliances. Through combination with advanced technologies such as internet of things, big data and cloud computing, intelligent hardware has become the breakthrough point for transformation and upgrading of the traditional domestic appliance manufacturing industry. According to the Academy of Information and Communication Technology, from vertical dimension of industrial application, intelligent hardware will provide RMB3tri of development dividend for the industries. Our Take: Apart from hardware, we saw that enterprises in both up and downstream of the industrial chain have accelerated their speed in forming cooperation relationships, with many traditional enterprises actively introducing intelligent hardware. As such, Qingdao Haier Intelligent Home Appliances Technology Co. Ltd., a subsidiary of Haier Group (1169 HK), has just announced the establishment of a joint-venture with Liaison Interactive Information technology (002280 CH), a company which produces market information system and software, last week. This marks a step forward for Haier to embed advanced smart technology into its home appliances. Haier trades at only 10.3x P/E for 2015E, according to Bloomberg consensus.
HSI TOP MOVERS Leaders Ticker CHEUNG KONG CITIC CHINA RES PO CATHAY PAC A CHINA RES EN
Laggers % 0.53 0.43 -0.53 -0.57 -0.61
Ticker CNOOC PETROCHINA-H CHINA RES LA LENOVO GROUP SANDS CHINA
INDEX
% -6.58 -5.08 -5.02 -4.82 -4.75
1D Chg
1D % Chg
21562.50 9780.16 3357.56 8268.68 1962.11 2888.03 1614.02 25622.17 7788.10
-568.81 -195.37 -41.74 -18.24 27.91 -40.15 10.66 -97.41 -30.50
-2.57 -1.96 -1.23 -0.22 1.44 -1.37 0.66 -0.38 -0.39
1396.16 4343.26 6893.54 5095.02
-0.13 -4.02 -48.93 -126.11
-0.01 -0.09 -0.70 -2.42
Asia HSI HSCEI SHSZ300 TWSE KOSPI FSSTI KLCI SENSEX NIFTY SET JCI PCOMP AS51
COMMODITIES
Close
1D % Chg YTD % Chg
Energy
CHINA TAKEAWAYS China’s Huijin to Issue RMB30bn of Bonds – Central Huijin Investment Ltd., the China-owned investment company, will issue RMB30bn worth of bonds to repay matured bonds. 10 commercial banks, including ICBC, ABC and BOC, will accept these bonds issued by Huijin as underlying assets in bond repurchase transactions. The bonds are divided into three types, 3-year, 5-year and 10-year, with issued amounts of RMB13bn, RMB13bn and RMB40bn respectively. China to Allow Overseas Central Banks to Enter Domestic Forex Market – China will open its foreign exchange market to overseas central banks, making it easier for foreign countries to hold RMB assets, according to Bloomberg. Currently, China has been pushing for RMB to be included in the IMF’s Special Drawing rights basket of reserve currencies. One criterion for qualification in entering into the IMF SDR basket is the currency’s share in the official reserves of other countries.
WTI Brent Natural Gas Gasoline
44.54 47.82 2.68 137.36
0.88 0.50 1.17 1.02
-23.38 -25.47 -11.72 -14.49
246.20 1106.67 14.72 988.35
1.05 -0.11 0.65 0.72
-12.99 -6.56 -6.34 -18.18
Corn Wheat Soybeans Coffee Sugar Cotton
369.25 474.00 875.00 118.65 11.33 63.75
0.07 0.37 0.32 -2.02 -0.87 1.32
-12.29 -22.90 -12.98 -33.06 -27.70 -1.04
Baltic Dry
855.00
-2.06
9.34
Metals Copper Gold (Spot) Silver (Spot) Platinum (Spot)
Agriculture
HSI Daily
Audi Hit Hard by Falling China Sales – Audi sold fewer cars in August than luxury rivals BMW and Mercedes-Benz as Volkswagen’s flagship brand had been harder hit than its German peers by falling demand in China. However Audi said yesterday that its total sales rose 2.7% last month from a year earlier to a record 128,650 cars and sportutility vehicles, helped by double-digit growth in Germany and the United States. Audi’s China deliveries fell for a fourth month but the decline eased to 4.1% from 12.5% in July. Manulife to Acquire StanChart’s MPF and Occupational Retirement Schemes Businesses – StanChart(2888 HK) and Manulife(945 HK) have reached a 15-year distribution partnership agreement to exclusively offer Manulife’s Mandatory Provident Fun(MPF) products to StanChart customers in Hong Kong. By the agreement, Manulife will acquire StanChart’s existing MPF and occupational retirement schemes businesses, and related investment management companies. The deal is expected to complete in the first half of 2016.
Institutional Research Team [email protected] Jennifer So, Head of Research
+852 2971-5433
Christopher Ho, Analyst
+852 2971-5436
1
State-owned China Automaker Teams with US Electric-car Startup Atieva – One of China’s largest state-owned automakers said on Thursday it has opened a technology research center in California’s Silicon Valley and is teaming with U.S. electric-car startup Atieva to develop EV for China and global markets. Beijing Electric Vehicle Co, the affiliate of government-owned BAIC Motor Corp Ltd(1958 HK), said its new tech center outside San Francisco will foucs on development of EVs and eventually self-driving cars.
QUAM INSTITUTIONAL SALES
STANLEY NG
Sales Director
+852 2217 2857
GUY STILLE
Sales
+852 2217 2853
SUSANNA CHU
Associate
+852 2217 2854
[email protected] [email protected] [email protected]
If you w ant to trade w ith us, please feel free to contact our institutional sales team above 18/F China Building, 29 Queen's Road Central, Hong Kong
Disclaimer and Risk Statement This document is published by Quam Securities Company Limited (“Quam Securities”), a licensed corporation (central entity num ber AAC557) regulated by the Securities and Futures Commission in Hong Kong. This document is for distribution in Hong Kong only to persons who are “Professional Investors” as defined in Part 1 of Schedule 1 of Securities and Futures Ordinance (Cap 571) of Hong Kong and any rules made thereunder. This document is not intended for distribution to or use by, any person or entity who is a citizen or resident of any jurisdiction where such distribution or use would be contrary to applicable law or regulation within such jurisdiction. This document does not constitute an offer or a solicitation of an offer to buy or sell any securities. This document is circulated to addresses solely and may not be reproduced or redistributed to any other person or published, in whole or in part, for any purpose. The research is based on information obtained from sources believed to be reliable, but Quam Securities does not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without prior notice. Any recommendation does not have regard to specific investment objectives, financial situation and particular needs of any specific addressee. Quam Securities accepts no liability whatsoever for any direct or consequential loss arising from any use of this document. Quam Securities and its affiliates as well as persons associated with any of them from time to time may or may not have interests in the securities mentioned in this document. The prices of securities may move up or down, and past performance is not an indication of future performance. Investors shall consider seeking separate legal or financial advice before making investment decisions
2
