For further product information please contact ICBC International Research Limited at (852) 2683 3888 Please read the important notice on last page Stock Market Performance Price Abs % 20 May chg chg HK Equities Hang Seng Index 27,585 (108) (0.4) - Spot mth fut. 27,466 (Prem.:-119) H-share Index 14,236 44 0.3 - Spot mth fut. 14,178 (Prem.:-58) Turnover HK$bn 137.8 2 1.3 -% from HSI 20.7 0 -% CBBC, wrnt 25.9 1 China Equities CSI 300 Index 4,755 24 0.5 Sh Composite Index 15,337 210 1.4 Sz Composite Index 2,619 52 2.0 Asian Equities Nikkei 225 20,197 170 0.8 Korea KOSPI 2,140 19 0.9 Taiwan TWSE 9,685 (31) (0.3) India Sensex 30 27,837 192 0.7 US/European Equities DJIA 18,285 (27) (0.1) S&P500 2,126 (2) (0.1) NASDAQ 5,072 2 0.0 UK FTSE 100 7,007 12 0.2 Germany DAX 11,848 (5) (0.0) France CAC40 5,133 16 0.3 Source: Bloomberg Other Indicators Price Abs Chg 20 May chg % WTI oil $/bl 59.0 1.0 1.7 Gold $/troy oz 1,209.3 0.9 0.1 Cu fut. $/metric ton 6,220.0 0.0 0.0 Al fut. $/metric ton 1,783.5 (5.5) (0.3) Reuters/Jefferies CRB fut. 226.4 0.2 0.1 Baltic Dry Index 606.0 (14.0) (2.3) UST yield 3m % 0.02 0.01 UST yield 10y % 2.25 (0.041) HIBOR 3m % 0.39 (0.002) USD LIBOR 3m % 0.28 0.000 Source: Bloomberg HK Listco ADR US (Top Ten) ADR cls HK cls Chg HK$ eqv. HK$ % Petrochina 9.57 9.57 (0.03) China Mobile 103.60 103.60 0.00 HSBC 74.13 74.60 (0.63) China Life 37.78 37.75 0.09 Sinopec Corp 6.86 6.89 (0.43) Hutchison Whampo 113.61 114.10 (0.43) China Telecom 5.49 5.52 (0.47) Cheung Kong 167.45 167.70 (0.15) Sun Hung Kai 132.02 131.10 0.70 China Unicom 13.92 13.98 (0.46) Implied HK cls Chg pt HSI 27,557 27,585 (28) H-share Index 14,233 14,236 (3) (Note: ADRs account for 34.4% weighting of HSI, 22.9% of H-share Index) Source: Bloomberg Equity Research Market Report VIEWPOINTS EXPRESS 21 May 2015 Comba Telecom (2342.HK) Boost from new international projects and domestic policy initiatives Comba Telecom announced three new international project wins in Argentina recently, further solidifying company’s brand value and market position in DAS (Distributed Antenna System) technology. Company would also benefit from MIIT’s new policies on facilitating faster and more affordable Internet connection in areas of Antennas & subsystems and wireless enhancement & access, due to 4G network build-out and network improvement. TMT Sector TMT Daily Update HIGHLIGHTS: Tencent’s Private Online Bank Launches Small Loans Alibaba ready to apply for Taiwan permit for Taobao Sales drive aims to tap demand in P2P lending New drivers for e-commerce eyed China has almost 1.3 billion mobile users, and half of them are on 3G or 4G
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For further product information please contact ICBC International Research Limited at (852) 2683 3888 Please read the important notice on last page
Stock Market Performance Price Abs %
20 May chg chgHK Equities Hang Seng Index 27,585 (108) (0.4)- Spot mth fut. 27,466 (Prem.:-119)
H-share Index 14,236 44 0.3- Spot mth fut. 14,178 (Prem.:-58)
WTI oil $/bl 59.0 1.0 1.7 Gold $/troy oz 1,209.3 0.9 0.1 Cu fut. $/metric ton 6,220.0 0.0 0.0 Al fut. $/metric ton 1,783.5 (5.5) (0.3)Reuters/Jefferies CRB fut. 226.4 0.2 0.1 Baltic Dry Index 606.0 (14.0) (2.3)UST yield 3m % 0.02 0.01 UST yield 10y % 2.25 (0.041)HIBOR 3m % 0.39 (0.002)USD LIBOR 3m % 0.28 0.000
Source: Bloomberg HK Listco ADR US (Top Ten)
ADR cls HK cls ChgHK$ eqv. HK$ %
Petrochina 9.57 9.57 (0.03)China Mobile 103.60 103.60 0.00 HSBC 74.13 74.60 (0.63)China Life 37.78 37.75 0.09 Sinopec Corp 6.86 6.89 (0.43)Hutchison Whampo 113.61 114.10 (0.43)China Telecom 5.49 5.52 (0.47)Cheung Kong 167.45 167.70 (0.15)Sun Hung Kai 132.02 131.10 0.70 China Unicom 13.92 13.98 (0.46)
Implied HK cls Chg ptHSI 27,557 27,585 (28)H-share Index 14,233 14,236 (3)(Note: ADRs account for 34.4% weighting of HSI, 22.9% of H-share Index) Source: Bloomberg
Equity Research
Market Report VIEWPOINTS EXPRESS 21 May 2015
Comba Telecom (2342.HK) Boost from new international projects and domestic policy initiatives Comba Telecom announced three new international project wins in Argentina recently, further solidifying company’s brand value and market position in DAS (Distributed Antenna System) technology. Company would also benefit from MIIT’s new policies on facilitating faster and more affordable Internet connection in areas of Antennas & subsystems and wireless enhancement & access, due to 4G network build-out and network improvement. TMT Sector TMT Daily Update HIGHLIGHTS: Tencent’s Private Online Bank Launches Small Loans Alibaba ready to apply for Taiwan permit for Taobao Sales drive aims to tap demand in P2P lending New drivers for e-commerce eyed China has almost 1.3 billion mobile users, and half of them are on 3G or
4G
VIEWPOINTS EXPRESS – 21 May 2015 2
Equity Research
Comba Telecom Boost from new international projects and domestic policy initiatives Comba Telecom announced three new international project wins in Argentina recently, further solidifying company’s brand value and market position in DAS (Distributed Antenna System) technology. Company would also benefit from MIIT’s new policies on facilitating faster and more affordable Internet connection in areas of Antennas & subsystems and wireless enhancement & access, due to 4G network build-out and network improvement.
Enhanced brand value and market position in DAS technology on winning new international projects. Comba Telecom recently announced that it has been selected by a leading mobile operator group in Latin America to provide the wireless network infrastructure for mobile coverage at its corporate offices in Argentina. It also announced being awarded another two projects for Argentina: it will be deploying indoor wireless systems at the Ministro Pistarini International Airport in Ezeiza and the Jorge Newbery Airport in Buenos Aires. All of the above projects will adopt the ComFlex DAS (Distributed Antenna System) solution with multi-band, multi-operator functionality to optimize investment and improve signal distribution. The latest project wins strengthened company’s brand value and market position as a supplier and partner in large projects using DAS technology, on top of its past successful projects like wireless solutions in various airports in Mexico and Colombia and eight of the stadiums hosting the 2014 tournament in Brazil.
Benefiting from policies on faster and more affordable Internet connection. To promote “Internet +” and encourage public entrepreneurship and innovation, MIIT recently issued policies on facilitating faster and more affordable Internet connection. Comba Telecom would be highly likely to benefit in the following areas:
1) Antennas and subsystems: With the objective of the 4G network covering both urban and rural areas at a full scale, the total number of 4G base stations is expected to exceed 1.3 mn by end of 2015, compared to 0.73 mn by end of 2014. Company’s antennas and subsystems would benefit from order increase due to large-scale domestic 4G network build-out.
2) Wireless enhancement & access: With the average fees for mobile data traffic being reduced significantly, the demand for wireless enhancement would grow due to increasing mobile data traffic consumption. Company’s solutions like MDAS, DAS, and IDAS to increase capacity and improve quality would see growth opportunities. For wireless access, small cell solutions also have potential to be commercially launched widely due to its technological advantages.
Outlook & Valuation. The company now is trading at 16.7x 2015F PE, according to Bloomberg consensus. Against the backdrop of favorable domestic policies on development of communication industry, Comba Telecom, as a leading wireless solutions provider, sees good opportunities in the short run. In the long run, with the increasing investment on 5G technologies worldwide, company is expected to achieve further growth in the next generation evolution.
HIGHLIGHTS: Tencent’s Private Online Bank Launches Small Loans Alibaba ready to apply for Taiwan permit for Taobao Sales drive aims to tap demand in P2P lending New drivers for e-commerce eyed China has almost 1.3 billion mobile users, and half of them are on
3G or 4G
Tencent’s Private Online Bank Launches Small Loans
WeBank, which is considered the first private Internet bank in China, launched its first loan product Weilidai for testing among a limited number of 50,000 selected users from Tencent’s (0700.HK) IM tool QQ. Weilidai offers personal loans up to RMB200,000 (US$32,000) free of guarantee or collateral.
Alibaba ready to apply for Taiwan permit for Taobao
Alibaba (BABA.US) is ready to apply to Taiwan’s authorities if needed for the relevant permit required to keep operating Taobao on the island. Taiwan said on Monday that Alibaba had half a year to wind down Taobao’s operations on the island, after it failed to apply for the permit required of a mainland company to do business there.
Sales drive aims to tap demand in P2P lending
More than 100 peer-to-peer lending platforms in China launched a sales campaign which has lured nearly 250,000 consumers who bought 1.1 billion yuan (US$177 million) in P2P products. The campaign was the first of its kind in the booming personal finance sector.
New drivers for e-commerce eyed
China will promote its e-commerce to the world and expand business in new sectors, said a senior official with the country’s top economic planner. The government pledged to create a favorable environment for e-commerce by cutting red tape, easing market access and lowering taxation.
China has almost 1.3 billion mobile users, and half of them are on 3G or 4G
The past year has seen massive growth for mobile broadband – 3G and 4G subscriptions – in China, according to new data released by China’s Ministry of Industry and Information Technology. The country now has 1.29 billion total mobile users, and as of April 49.9% of them have mobile broadband services.
Stock Exch Price HKD Price change % A-share A-share price Price change % H/A-shr --- H-share P/E (x) --- H-shr Yld (%) --- P/B (x) --- Code 20 May 1d 5d 1m Code RMB HKD 1d 5d 1m disc (%) Rpted Cur Yr Next Yr 12mth Cur Yr Cur Yr Next Yr
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