abc Global Research Pure-play climate stocks lead the way in climate investing, having outperformed both the HSBC Climate Index and global equities by 45% and 43%, respectively, year to date As the recipient of the largest share of climate stimulus funds, Energy Efficiency & Energy Management posted the strongest sector return, up 16% year to date Although EEEM now trades on a 20% premium to the climate index for 2010e, we believe this premium is justified, on the basis that its earnings growth, at 23%, is the strongest of the four climate sectors In addition to tracking the development of the climate theme, at HSBC we are also in a position to distinguish between the obvious ‘pure plays’ and the growing number of other companies that are re-shaping their businesses as they seek to gain competitive advantage in the emerging low- carbon economy. In this quarterly review we delve deeper into the HSBC Climate Index in order to examine the dynamic between pure play and non-pure play companies and use this opportunity to explore their respective representation, geographical distribution and performance characteristics. With the first phase of the global stimuli announcements now complete, we also use the index to analyse the equity market performance of climate-related sectors and industries in an attempt to determine whether the various stimulus plans have begun to have a noticeable impact on stock price performance. HSBC Climate Change Indices The scheduled quarterly review of constituents of the HSBC Global Climate Change family of indices has now taken place. The minimum market capitalisation threshold moves from USD250m to USD350m and there will be 28 additions to and 2 deletions from the benchmark index. All changes will be effective as of the close of business on 19 June 2009. Equity Quantitative Research Global Climate Change – June 2009 quarterly index review Enhance climate returns with pure plays 11 June 2009 Joaquim de Lima* Analyst HSBC Bank plc +44 20 7991 6836 [email protected]Vijay Sumon* Analyst HSBC Bank plc +44 20 7991 6839 [email protected]View HSBC Global Research at: http://www.research.hsbc.com *Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to NYSE and/or NASD regulations Issuer of report: HSBC Bank plc Disclaimer & Disclosures This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it
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abcGlobal Research
Pure-play climate stocks lead the way in climate investing, having outperformed both the HSBC Climate Index and global equities by 45% and 43%, respectively, year to date
As the recipient of the largest share of climate stimulus funds, Energy Efficiency & Energy Management posted the strongest sector return, up 16% year to date
Although EEEM now trades on a 20% premium to the climate index for 2010e, we believe this premium is justified, on the basis that its earnings growth, at 23%, is the strongest of the four climate sectors
In addition to tracking the development of the climate theme,
at HSBC we are also in a position to distinguish between the
obvious ‘pure plays’ and the growing number of other
companies that are re-shaping their businesses as they
seek to gain competitive advantage in the emerging low-
carbon economy.
In this quarterly review we delve deeper into the HSBC
Climate Index in order to examine the dynamic between
pure play and non-pure play companies and use this
opportunity to explore their respective representation,
geographical distribution and performance characteristics.
With the first phase of the global stimuli announcements
now complete, we also use the index to analyse the equity
market performance of climate-related sectors and
industries in an attempt to determine whether the various
stimulus plans have begun to have a noticeable impact on
stock price performance.
HSBC Climate Change Indices The scheduled quarterly review of constituents of the HSBC
Global Climate Change family of indices has now taken
place. The minimum market capitalisation threshold moves
from USD250m to USD350m and there will be 28 additions
to and 2 deletions from the benchmark index. All changes
will be effective as of the close of business on 19 June 2009.
Equity Quantitative Research Global
Climate Change – June 2009 quarterly index review Enhance climate returns with pure plays
11 June 2009 Joaquim de Lima* Analyst HSBC Bank plc +44 20 7991 6836 [email protected]
View HSBC Global Research at: http://www.research.hsbc.com
*Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to NYSE and/or NASD regulations
Issuer of report: HSBC Bank plc
Disclaimer & Disclosures This report must be read with the disclosures and the analyst certifications in the Disclosure appendix, and with the Disclaimer, which forms part of it
EEEM PE valuations Following the strong rally since the beginning of
the year, the Energy Efficiency and Energy
Management sector has seen its 12-month forward
PE rise from 10.6x to 19.0x.
EEEM Sector: rolling 12M forward PE and PER
5
10
15
20
25
04 05 06 07 08 09
70
90
110
130
150EEEMPE relativ e to World Index (RHS)
Source: HSBC, Thomson Financial Datastream
Although this sector now trades on an almost 20%
premium to the climate index for 2010, this is
only slightly above its five-year median of 16.8x.
Nevertheless, we believe this premium is justified,
on the basis that the earnings growth prospects
for 2010 are the strongest of the four climate
change sectors.
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In the next section our climate change
colleagues explore emission reductions
Nick Robins* Analyst HSBC Bank plc +44 20 7991 6778 [email protected]
Roshan Padamadan*, CFA Analyst HSBC Bank plc +44 20 7991 6715 [email protected] *Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered & qualified pursuant to NYSE and & or NASD regulations. We gratefully acknowledge the assistance of D Saravanan and Charanjit Singh from the HSBC Climate Change Centre of Excellence in the preparation of this report.
either a warning that further gains are hard to find
– which would contradict the available evidence –
or a sign that tough regulation is needed to move
to a new level of efficiency.
For a few laws more
The latter explanation appears more likely, with few
countries yet having sufficiently binding regulatory
frameworks. Only China and the EU have set
country-level energy efficiency targets. China’s 11th
Five-Year Plan (2006-2010) has set an ambitious
target of a 20% reduction in energy intensity by
2010, giving an average 4% drop per annum.
China’s energy intensity fell by an impressive 4.2%
in 2008 after more modest declines of 1.3% in 2006
and 3.7% in 2007. China’s National Bureau of
Statistics has stated that the country’s energy
intensity dropped 2.89% in Q1 2009. We expect that
China will yet meet its 20% target with some
acceleration in 2009 and 2010.
The third pillar of the EU Climate Energy
package aims to cut the EU’s primary energy
consumption by 20% by 2020. This is seen as the
prime means by which to improve energy
security, climate protection and competitiveness
all at once. Hitting the target would slash the EU’s
energy bill by EUR100bn by 2020, saving
780mtCO2, which is double the reduction
committed under Kyoto Protocol by 2012.
The EU’s energy legislation promotes energy-
efficient buildings, appliances, processes and low
emission cars with a penalty for tail gas emissions
for cars emitting more than 120g/km by 2015. But
we believe that the EU’s efficiency goals are
vulnerable to slippage without stronger
disincentives for non-compliance.
Upgrading building efficiency
Buildings are responsible for a third of global
energy consumption – and final energy use in the
household sector increased by 14% between 1990
and 2004 across 15 OECD countries, according to
the IEA. Space heating was the major consumer
of energy in the household sector accounting for
54% of the total in 2004. However, this is a sharp
fall from 59% of the total in 1990, driven by a
combination of higher efficiencies of space
heating equipment and improved thermal
performance of new and existing dwellings.
Across these countries, the specific energy per
heated area actually declined by 16% between
1990 and 2004. Japan and the United Kingdom
are the only countries to register an increase in
energy intensities. But France, Germany and Italy
still have the highest levels of energy intensity.
This could be the result of a greater percentage of
poorly insulated older buildings.
Trends in specific energy use in space heating (kJ/m2 /HDD)
0
50
100
150
200
1990 1992 1994 1996 1998 2000 2002 2004
Germany Canada USUK Japan China
Source: IEA – Energy use in New Millennium 2007, HSBC
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Promoting industrial energy efficiency
Industrial efficiency offers huge potential but is
highly fragmented. Over the past five years, the
Energy Efficiency Index (EEI) in the Iron and
Steel sector of the G8+5 countries has improved
by 9%, or 1.8% per year. China and India showed
strong progress, while South Africa’s EEI
deteriorated. The likely explanation is the rapid
expansion of production capacity with relatively
efficient technology.
Harnessing transport efficiently
Transportation is responsible for almost one-third of
world energy use. Between 1990 and 2004, the
overall energy efficiency of passenger transport in a
group of 17 IEA countries improved by just 0.5%
per year. South Korea emerges as the best performer
by achieving its 2012 fuel economy targets ahead of
time; the EU and Japan top the chart in terms of
highest fuel efficiency. Relatively tight auto
regulations have led to the widespread diffusion of
electronic control systems and high fuel prices have
driven stronger consumer demand for more efficient
cars. North American auto efficiency hovers at the
lower end of the chart, one explanation for the
current woes in Detroit.
Growing clean energy With momentum gathering towards a decarbonised
economy, countries are increasing their focus on
renewable power. In spite of this, the contribution of
green power has remained almost constant over the
past decade, due to the resurgence of the use of coal
in the global energy mix.
Green Power Contribution (inc. Large Hydro) in %
5%
10%
15%
20%
25%
30%
35%
40%
1980 1983 1986 1989 1992 1995 1998 2001 2004
US Eur China India Japan
Source: ICCT – Gas and Fuel Economy Standards 2007, HSBC
As part of the efforts to decarbonise the electricity
sector, a number of key countries have set targets
to increase the contribution of renewable energy
by 2010. Most countries remain far from realising
these goals, but China and Germany have already
hit their targets ahead of time.
As a whole, the European Union is lagging
behind. The recent renewable energy progress
report from the EU Commission states that the
Union will not be able to achieve its 2010
renewable targets: only 19% of electricity is
expected to come from renewable sources by
2010 compared with a 21% target.
Trend in Energy Efficiency Index (EEI) in Iron & Steel
0
50
100
150
200
250
300
350
S.Africa
USA
Brazil
UK
Russia
Canada
France
China
India
Germ
any
Japan
1996-2000 2001-2005
Source: REEP- Global Status Report on Energy Efficiency 2008
Transport Energy Efficiency target (mpg)
0
10
20
30
40
50EU Japan
India
China
Australia
Canada
S.Korea
US
2005/2006 2010 Target
Source: ICCT – Gas and Fuel Economy Standards 2007, HSBC
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Enforcement remains an issue
To hit the EU’s ambitious 20% green power target
for all primary energy by 2020, tougher penalties
for non-compliance will be required. The EU
renewable energy directive mandates
infringement proceedings against member states
that fail to fulfil their obligations, but as these
proceedings can often remain unresolved for years
this is not a compelling driver for action.
The proposed Clean Energy and Security
legislation in the US does, however, contain
clauses to penalise states for any shortfall in
renewable electricity generation.
A climate deal in the making? This mixed progress in terms of hitting historical
carbon, efficiency and renewables targets
suggests we need to take a hard-headed look at
what can be expected from December’s
Copenhagen climate summit.
As we write, negotiators are in the second session
of talks this year to agree a broad-based
agreement on emission cuts, adaptation, finance
and technology. Scientists from the IPCC suggest
that industrialised countries need to cut emissions
by 25-40% below 1990 levels by 2020. But our
analysis suggests that the commitments made to
Emission commitments compared with IPCC benchmark
25%
30.0%
25.0%
20.0%10.0%
5.0%
3.5%
2.6%10.4%
9.3%
0% 5% 10% 15% 20% 25% 30% 35% 40%
UNFCCC Target
Norw ay
Sw itzerland
EU
Japan
Australia
US
Canada
Av g Commitment
Av g Annex I
Source: UNFCCC, HSBC (Countries Commitment were recalculated to 1990 base year)
Renewable Energy Progress (excl large hydro) in %
0%
5%
10%
15%
20%
25%
Europe UK Germany France Poland US Canada Australia Brazil Russia India China* S.Africa Mex ico S.Korea
1990 2006 Target by 2010
Source: EIA, HSBC (*Shows only trend in Wind power generation capacity; Canada doesn’t have RE target but assumed same as US Climate bill)
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date by the Annex I countries are just 11%. Only
the EU, Norway and Switzerland currently sit
within the recommended range. Targets proposed
by both the US Congress and the Obama
Administration are far below the IPCC
benchmark, creating one of the more entrenched
obstacles to a deal in December.
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HSBC Climate Change Index review
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Highlights and changes
The minimum market capitalisation threshold
is now USD350m.
The benchmark index still represents 18
investment themes.
Quarterly changes to the Benchmark Index
are outlined in the table below.
HSBC Global Climate Change benchmark index quarterly changes
Sector Ins Outs
Low Carbon Energy Production 20 1 Energy Efficiency & Management 7 0 Water, Waste & Pollution Control 1 0 Financials 0 1 Total 28 2
Note: based on data as of 5 June 2009 Source: HSBC
New benchmark composition Benchmark index new composition as of June 2009
Description No. of stocks Weighting (%)
Low Carbon Energy Production 199 60.60
Bio-Energy 30 3.07 Diversified Renewable 18 2.72 Gas 3 2.11 Hydro/Geothermal/Marine 15 1.59 Integrated Power 44 26.90 Nuclear 28 12.38 Solar 40 6.79 Wind 21 5.04
Energy Efficiency & Management 111 27.23
Buildings Efficiency 24 4.28 Energy Storage 17 1.32 Fuelcells 8 0.75 Industrial Efficiency 40 14.95 Transport Efficiency 22 5.93
Water, Waste & Pollution Control 63 12.03
Pollution Control 2 0.30 Waste 16 4.37 Water 45 7.36
Financials 4 0.14
Carbon trading 2 0.05 Investment company 2 0.09
Total 377 100
Note: based on data as of 5 June 2009 Source: HSBC
HSBC Global Climate Change Benchmark Index
Minimum market capitalisation threshold raised from USD250m to
USD350m
There will be 28 additions to and 2 deletions from the index
Changes will be effective as of the close of business on 19
June 2009
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Quarterly changes to the Global Climate Change Benchmark Index
Status Name Country Group description
In ANDERSONS INC USA Low Carbon Energy Production In A-POWER ENERGY GEN USA Low Carbon Energy Production In ARENDALS FOSSEKAMP Norway Low Carbon Energy Production In AVICHINA INDUSTRY H China Low Carbon Energy Production In BLACK EARTH FARMING Sweden Low Carbon Energy Production In CANADIAN SOLAR INC USA Low Carbon Energy Production In CHINA POWER NEW EN Hong Kong Low Carbon Energy Production In DENISON MINES CORP Canada Low Carbon Energy Production In EMAMI LTD India Low Carbon Energy Production In ENERNOC INC USA Low Carbon Energy Production In EPURE INTERNATIONAL Singapore Water, Waste & Pollution Control In EQUINOX MINERALS Australia Energy Efficiency & Management In EXIDE TECHNOLOGIES USA Energy Efficiency & Management In EXTRACT RESOURCES Australia Low Carbon Energy Production In FRONTEER DEVELOPMENT Canada Low Carbon Energy Production In FUEL SYSTEMS SOLUT USA Energy Efficiency & Management In JAIPRAKASH HYDRO PWR India Low Carbon Energy Production In KALPATARU POWER TRAN India Low Carbon Energy Production In OPTO TECH Taiwan Energy Efficiency & Management In OSAKA TITANIUM TECH Japan Low Carbon Energy Production In POLYPORE INTL INC USA Energy Efficiency & Management In PRAJ INDUSTRIES India Low Carbon Energy Production In RENESOLA UK Low Carbon Energy Production In ROTH & RAU AG Germany Low Carbon Energy Production In SIG UK Energy Efficiency & Management In SOLARFUN POWER ADR USA Low Carbon Energy Production In TRINA SOLAR ADR USA Low Carbon Energy Production In ZOLTEK COS USA Energy Efficiency & Management Out ENVITEC BIOGAS AG Germany Low Carbon Energy Production Out PI POWER INT LTD Austria Financials Note: based on data as of 5 June 2009 Source: HSBC
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Highlights and changes The minimum market capitalisation threshold
is lowered from USD600m to USD500m.
HSBC Investable Climate Change Index now
represents 12 investment themes.
Changes will be effective as of the close of
business on 19 June 2009.
** http://web.sebi.gov.in/press/2007/2007286.html
HSBC Global Investable Climate Change index quarterly changes
Sector Ins Outs
Low Carbon Energy Production 0 2 Energy Efficiency & Management 2 0 Water, Waste & Pollution Control 0 0 Financials 0 0 Total 2 2
Note: based on data as of 5 June 2009. Source: HSBC.
New Investable composition Investable index new composition as of June 2009
Description No. of stocks Weighting (%)
Low Carbon Energy Production 23 60.91
Bio-Energy 2 1.52 Geothermal/Hydro/Marine Gas 1 1.01 Integrated Power 5 19.40 Nuclear 5 20.09 Solar 6 7.91 Wind 4 10.97
Energy Efficiency & Management 11 13.17
Buildings Efficiency 2 1.30 Energy Storage 2 1.67 Industrial Efficiency 1 0.45 Transport Efficiency 6 9.76
Water, Waste & Pollution Control 16 25.92
Waste 5 10.66 Water 11 15.27
Total 50 100
Note: based on data as of 5 June 2009 Source: HSBC
HSBC Investable Climate Change Index
Minimum market capitalisation threshold raised to USD700m
There will be 2 additions to and 2 deletions from the index
Indian stocks continue to be excluded from this index**
Quarterly changes to the HSBC Investable Climate Change Index
Status Name Country Group description
In AQUARIUS PLATINUM UK Energy Efficiency & Management In SIG UK Energy Efficiency & Management Out AES TIETE SA PREF A Brazil Low Carbon Energy Production Out EDF ENERGIES NOUV France Low Carbon Energy Production Note: based on data as of 5 June 2009 Source: HSBC
Highlights and changes HSBC Global Climate Change 100 Index now
represents 16 investment themes.
Changes will be effective as of the close of
business on 19 June 2009.
Quarterly changes to the 100 Index are
outlined in the table below.
** http://web.sebi.gov.in/press/2007/2007286.html
Sector Ins Outs
Low Carbon Energy Production 1 2 Energy Efficiency & Management 2 1 Water, Waste & Pollution Control 0 0 Financials 0 0 Total 3 3
Note: based on data as of 5 June 2009 Source: HSBC
New 100 composition 100 index new composition as of June 2009
Description No. of stocks Weighting (%)
Low Carbon Energy Production 56 60.00
Bio-Energy 4 1.55 Diversified Renewable 4 2.03 Gas 3 2.75 Hydro/Geothermal/Marine 1 0.13 Integrated Power 17 28.45 Nuclear 10 14.14 Solar 13 6.71 Wind 4 4.25
Energy Efficiency & Management 26 27.63
Buildings Efficiency 6 4.31 Energy Storage 12 17.84 Fuelcells 5 4.48 Industrial Efficiency 1 0.23 Transport Efficiency 2 0.78
Water, Waste & Pollution Control 18 12.37
Pollution Control 1 0.41 Waste 5 4.92 Water 12 7.05
Total 100 100
Source: HSBC, Note: based on data as of June 2009
HSBC Climate Change 100 Index
There will be 3 additions to and 3 deletions from the index
Changes will be effective as of the close of business on
19 June 2009
Indian stocks continue to be excluded from this index**
Quarterly changes to the HSBC Global Climate Change 100 Index
Status Name Country Group description
In ROHM Japan Energy Efficiency & Management In SAMSUNG SDI Korea Energy Efficiency & Management In YINGLI GREEN ENE ADR China Low Carbon Energy Production Out EDP ENERGIAS PORT Portugal Low Carbon Energy Production Out ENERGY CONV DEVICE USA Energy Efficiency & Management Out SUNPOWER CORP 'A' USA Low Carbon Energy Production Source: HSBC, Note: based on data as of 6 June 2009
HSBC Global Climate Change 100 index quarterly changes
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Notes
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Notes
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Disclosure appendix Analyst certification The following analyst(s), who is(are) primarily responsible for this report, certifies(y) that the opinion(s) on the subject security(ies) or issuer(s) and any other views or forecasts expressed herein accurately reflect their personal view(s) and that no part of their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report: Joaquim De Lima, Vijay Sumon, Nick Robins and Roshan Padamadan
Important disclosures
Stock ratings and basis for financial analysis HSBC believes that investors utilise various disciplines and investment horizons when making investment decisions, which depend largely on individual circumstances such as the investor's existing holdings, risk tolerance and other considerations. Given these differences, HSBC has two principal aims in its equity research: 1) to identify long-term investment opportunities based on particular themes or ideas that may affect the future earnings or cash flows of companies on a 12 month time horizon; and 2) from time to time to identify short-term investment opportunities that are derived from fundamental, quantitative, technical or event-driven techniques on a 0-3 month time horizon and which may differ from our long-term investment rating. HSBC has assigned ratings for its long-term investment opportunities as described below.
This report addresses only the long-term investment opportunities of the companies referred to in the report. As and when HSBC publishes a short-term trading idea the stocks to which these relate are identified on the website at www.hsbcnet.com/research. Details of these short-term investment opportunities can be found under the Reports section of this website.
HSBC believes an investor's decision to buy or sell a stock should depend on individual circumstances such as the investor's existing holdings and other considerations. Different securities firms use a variety of ratings terms as well as different rating systems to describe their recommendations. Investors should carefully read the definitions of the ratings used in each research report. In addition, because research reports contain more complete information concerning the analysts' views, investors should carefully read the entire research report and should not infer its contents from the rating. In any case, ratings should not be used or relied on in isolation as investment advice.
Rating definitions for long-term investment opportunities
Stock ratings HSBC assigns ratings to its stocks in this sector on the following basis:
For each stock we set a required rate of return calculated from the risk free rate for that stock's domestic, or as appropriate, regional market and the relevant equity risk premium established by our strategy team. The price target for a stock represents the value the analyst expects the stock to reach over our performance horizon. The performance horizon is 12 months. For a stock to be classified as Overweight, the implied return must exceed the required return by at least 5 percentage points over the next 12 months (or 10 percentage points for a stock classified as Volatile*). For a stock to be classified as Underweight, the stock must be expected to underperform its required return by at least 5 percentage points over the next 12 months (or 10 percentage points for a stock classified as Volatile*). Stocks between these bands are classified as Neutral.
Our ratings are re-calibrated against these bands at the time of any 'material change' (initiation of coverage, change of volatility status or change in price target). Notwithstanding this, and although ratings are subject to ongoing management review, expected returns will be permitted to move outside the bands as a result of normal share price fluctuations without necessarily triggering a rating change.
*A stock will be classified as volatile if its historical volatility has exceeded 40%, if the stock has been listed for less than 12 months (unless it is in an industry or sector where volatility is low) or if the analyst expects significant volatility. However,
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stocks which we do not consider volatile may in fact also behave in such a way. Historical volatility is defined as the past month's average of the daily 365-day moving average volatilities. In order to avoid misleadingly frequent changes in rating, however, volatility has to move 2.5 percentage points past the 40% benchmark in either direction for a stock's status to change.
Prior to this, from 7 June 2005 HSBC applied a ratings structure which ranked the stocks according to their notional target price vs current market price and then categorised (approximately) the top 40% as Overweight, the next 40% as Neutral and the last 20% as Underweight. The performance horizon is 2 years. The notional target price was defined as the mid-point of the analysts' valuation for a stock.
From 15 November 2004 to 7 June 2005, HSBC carried no ratings and concentrated on long-term thematic reports which identified themes and trends in industries, but did not make a conclusion as to the investment action that potential investors should take.
Prior to 15 November 2004, HSBC's ratings system was based upon a two-stage recommendation structure: a combination of the analysts' view on the stock relative to its sector and the sector call relative to the market, together giving a view on the stock relative to the market. The sector call was the responsibility of the strategy team, set in co-operation with the analysts. For other companies, HSBC showed a recommendation relative to the market. The performance horizon was 6-12 months. The target price was the level the stock should have traded at if the market accepted the analysts' view of the stock.
Rating distribution for long-term investment opportunities
As of 10 June 2009, the distribution of all ratings published is as follows: Overweight (Buy) 34% (34% of these provided with Investment Banking Services)
Neutral (Hold) 39% (31% of these provided with Investment Banking Services)
Underweight (Sell) 27% (27% of these provided with Investment Banking Services)
Analysts are paid in part by reference to the profitability of HSBC which includes investment banking revenues.
For disclosures in respect of any company, please see the most recently published report on that company available at www.hsbcnet.com/research.
* HSBC Legal Entities are listed in the Disclaimer below.
Additional disclosures 1 This report is dated as at 11 June 2009. 2 All market data included in this report are dated as at close 05 June 2009, unless otherwise indicated in the report. 3 HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its
Research business. HSBC's analysts and its other staff who are involved in the preparation and dissemination of Research operate and have a management reporting line independent of HSBC's Investment Banking business. Chinese Wall procedures are in place between the Investment Banking and Research businesses to ensure that any confidential and/or price sensitive information is handled in an appropriate manner.
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Disclaimer * Legal entities as at 22 October 2008 'UAE' HSBC Bank Middle East Limited, Dubai; 'HK' The Hongkong and Shanghai Banking Corporation Limited, Hong Kong; 'TW' HSBC Securities (Taiwan) Corporation Limited; 'CA' HSBC Securities (Canada) Inc, Toronto; HSBC Bank, Paris branch; HSBC France; 'DE' HSBC Trinkaus & Burkhardt AG, Dusseldorf; 000 HSBC Bank (RR), Moscow; 'IN' HSBC Securities and Capital Markets (India) Private Limited, Mumbai; 'JP' HSBC Securities (Japan) Limited, Tokyo; 'EG' HSBC Securities Egypt S.A.E., Cairo; 'CN' HSBC Investment Bank Asia Limited, Beijing Representative Office; The Hongkong and Shanghai Banking Corporation Limited, Singapore branch; The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch; HSBC Securities (South Africa) (Pty) Ltd, Johannesburg; 'GR' HSBC Pantelakis Securities S.A., Athens; HSBC Bank plc, London, Madrid, Milan, Stockholm, Tel Aviv, 'US' HSBC Securities (USA) Inc, New York; HSBC Yatirim Menkul Degerler A.S., Istanbul; HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, HSBC Bank Brasil S.A. - Banco Múltiplo, HSBC Bank Australia Limited, HSBC Bank Argentina S.A., HSBC Saudi Arabia Limited.