Phillip Securities Group
Please note that the Day Light Saving of Europe and US will be effective on April 1st and March 11th respectively. The trading hours for those relevant contracts will be 1 hour earlier. Any questions, please contact us at 22776677.For details, please visit our foreign futures website or contact us at 22776677.Moreover,the spread of USD/JPY is low as one pip.Please click here for details
 
  Phillip Investor Notes

19-12-2014(Fri) 18-12-2014(Thu) 17-12-2014(Wed) 16-12-2014(Tue) 15-12-2014(Mon)
Page : 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 |
Investor Notes - Phillip Securities (HK) Ltd
Past Investor Notes *Advertisement*
Phillip Home Send to Friends Free Subscription Give Comments 中文版
19 Dec, 2014 (Friday)

            
CMS(867)
Analysis:
After the completion of the stake acquisition of Tibet Pharmaceuticals, CMS (867) recently announced the acquisition of China assets for two drugs Lamisil tablets and Parlodel tablets from Novartis AG and Novartis Pharma AG.. It also planned to acquire stake in Hebei Xili Xinglong Pharmaceutical. Lamisil tablets and Parlodel tablets were originally research and developed by Novartis, which have been sold in PRC for many years. Hebei Xili Xinglong Pharmaceutical owned production lines for five dosages, and the key products were Danshen and Hawkthorn two series, among which Danshentong was expected to become one of the focused products for the company. (I do not hold the above stock)
Strategy:
Buy-in Price: $12.50, Target Price: $14.00, Cut Loss Price: $11.90

TENCENT(700)
Analysis:
Q3 net profits of Tencent was RMB 5.66 Billion, with an decrease of 3% on a month-on-month basis against the last quarter and an increase of 46% on a year-on-year basis while income of the third quarter was RMB 19.8 Billion, with an increase of 0.31% on a quarter-on-quarter basis and 27.5% on a year-on-year basis against the last year, the performance is slightly below the expectation. While the total income of the company during the first three quarters reached to RMB 58 Billion, with an increase of 33% on a year-on-year basis, net profits reached to RMB 17.95 Billion, with an increase of 55% on a year-on-year against the last year. The income of mobile games of Tencent in the third quarter was about RMB 2.6 Billion and declined in comparison with RMB 3 Billion in the second quarter on a month-on-month basis, slightly surprising the market. After rapid growth, Tencent is currently in a relatively awkward situation, namely, it is difficult for the company to continue the high increase of mobile games, while the profit model of O2O ecological circle is not yet clear and the company is lack of more growth driving forces. However, we hold positive view with respect to that the company will find out new growth points earlier than its competitors. We give Tencent “Buy” rating, 12m TP at HKD 136, equivalent to the prospective P/E ratio of 43 times and 32 times of 2014 and 2015.
Strategy:
Buy-in Price: $112, Target Price: $136, Cut Loss Price: $100


BT ENT WATER (371.HK) - The guarantee of the rapid growth in future

-The Company’s revenue amounted to HK$3.815 billion in 1H2014, up 38% y-y, the gross profit was HK$1.596 billion, increased by 44% y-y with the gross margin of 41.8%, slightly higher than that of 1H2013, and net profit achieved to HK$714 million, up 39% y-y, equivalent to the EPS of HK$8.31 cents, higher than our expectation.

-In domestic projects, total design capacity achieved to 17.98 million tons/day in 1H 2014, increased by 1.334 million tons/day compared with the end of 2013. The capacity under operation was 11.53 million tons/day, up 2.104 million tons/day, increased by 22%, we believe the growth of projects under operation would maintain over 30% in the next three years. The project which were not put into operation was 6.45 million tons/day, down 0.77 million tons/day, mainly due to the large quantity of projects had already been put into operation. The Company announced to sign 10 new projects on 8th Dec, with the capacity of 1.045 million/day. The capacity of newly added projects was 3.80 million tons/day including new projects of 2.76 million tons/day before 30th Oct. We expect the capacity of new projects would achieve to 3 million/day annually in future.

-The Company’s incomes in sewage treatment business was HK$1.48 billion in 1H, up 74%, and the construction income of BOT project amounted to HK$1.36 billion, up 240% sharply, the Company had 50 projects under construction, and would have more projects put into operation in the next two years. Construction and service incomes of comprehensive treatment projects was HK$420 million, down 69% y-y largely, and we can see the Company focused on the construction and operation in BOT project.

Investment Action

The Company is a leader of domestic water service enterprises, and sewage treatment industry will develop rapidly in the next two years benefited from the national environmental policies, the quantity of the Company’s projects under construction and new projects maintain at the high level, which would increase rapidly as expected. We increase the Company’s 12-month target price to HK$6.45, equivalent to 25xP/E in 2015E, recommend Buy rating.

Better-than-expected performance

The Company’s revenue amounted to HK$3.815 billion in 1H2014, up 38% y-y, the gross profit was HK$1.596 billion, increased by 44% y-y with the gross margin of 41.8%, slightly higher than that of 1H2013, and net profit achieved to HK$714 million, up 39% y-y, equivalent to the EPS of HK$8.31 cents, higher than our expectation.

Rapid growth of the projects

In domestic projects, total design capacity achieved to 17.98 million tons/day in 1H 2014, increased by 1.334 million tons/day compared with the end of 2013. The capacity under operation was 11.53 million tons/day, up 2.104 million tons/day, increased by 22%, we believe the growth of projects under operation would maintain over 30% in the next three years. The project which were not put into operation was 6.45 million tons/day, down 0.77 million tons/day, mainly due to the large quantity of projects had already been put into operation. The Company announced to sign 10 new projects on 8th Dec, with the capacity of 1.045 million/day. The capacity of newly added projects was 3.80 million tons/day including new projects of 2.76 million tons/day before 30th Oct. We expect the capacity of new projects would achieve to 3 million/day annually in future.

Large profit growth of businesses

The Company’s incomes in sewage treatment business was HK$1.48 billion in 1H, up 74%, and the construction income of BOT project amounted to HK$1.36 billion, up 240% sharply, the Company had 50 projects under construction, and would have more projects put into operation in the next two years. Construction and service incomes of comprehensive treatment projects was HK$420 million, down 69% y-y largely, and we can see the Company focused on the construction and operation in BOT project.

Valuation

The Company is a leader of domestic water service enterprises, and sewage treatment industry will develop rapidly in the next two years benefited from the national environmental policies, the quantity of the Company’s projects under construction and new projects maintain at the high level, which would increase rapidly as expected. We increase the Company’s 12-month target price to HK$6.45, equivalent to 25xP/E in 2015E, recommend Buy rating.

Click Here for PDF format...




Recommendation on 19-12-2014
RecommendationBuy
Price on Recommendation Date$ 5.130
Suggested purchase priceN/A
Target Price$ 6.450
Writer Info
Research Team
Tel: +852 2277 6751
Email:
research@phillip.com.hk

Local Index
       Index    Change   Change%

World Index
       Index    Change   Change%
  

A-H spread
Stock Code H share
Price
A share
Price
H share
discount


Oversea Research Reports


Investment Service Centre


Stock Borrowing & Lending



Enquiry : 2277 6666 OR investornotes@phillip.com.hk
If you cannot read this e-mail in the proper format, please click here to view the web version.

Phillip Research - Hong Kong 輝立研究部 – 香港及中國
Company Stock Code Last Update Suggestion Target Price Price on Recom
Mainland Financial Xingyu Chen (86) 2151698900-105chenxingyu@phillip.com.cn
Color Life177818/12/2014BUY86.08
China Construction Bank93917/12/2014Accumulate6.95.98
Transportation and Automobiles Zhang Jing (86) 2151699200-103zhangjing@phillip.com.cn
Weichai233815/12/2014Accumulate3531.85
Daqin Railway08/12/2014BUY11.39.48
Mainland Property Geng Chen (86) 2151699400-107chengeng@phillip.com.cn
CSCI331112/12/2014Buy15.811.36
China South City166804/11/2014Buy5.53.52
Insurance Xingyu Chen (86) 2151699400-105chenxingyu@phillip.com.cn
CPIC260111/11/2014Buy33.728.1
New China Insurance133615/08/2014Buy36.628
Properties  
FORTUNE REIT77814/10/2014Accumulate7.326.92
Hysan Development001418/03/2014Accumulate36.833.35
Hotels and Entertainment Geng Chen (86) 2151699400-107chengeng@phillip.com.cn
Galaxy Entertainment2719/11/2014Accumulate5651.75
Galaxy Entertainment2716/07/2014Accumulate7262.95
New Energy  
BT ENT WATER37119/12/2014Buy6.450.000
Sound Global96709/12/2014Buy10.257.54
Food, Beverage and Retail  
Samsonite International SA191012/11/2014Accumulate3127
Sa Sa International17816/09/2014Reduce5.075.81
Telecommunications  
TCL Communication Tech261816/12/2014BUY10.137.5
Coolpad Group236910/12/2014Buy1.921.59
Oil and Gas Geng Chen (86) 2151699400-107chengeng@phillip.com.cn
CIMC ENRIC389927/10/2014Buy107.67
Anton Oilfield Service333710/10/2014Neutral2.22.29
Software & Service Kay Ng (852) 2277 6751kayng@phillip.com.hk
KINGDEE INT`L26802/12/2014Accumulate2.752.45
Tencent Holdings70027/11/2014Accumulate136125.7

Information contained herein is based on sources that Phillip Securities (Hong Kong) Limited and/or its affiliates ( the “Group”) believe to be accurate. The Group does not bear responsibility for any loss occasioned by reliance placed upon the contents hereof. The Group (or its employees) may have interests in relevant investment products. For details of different products’ risks, please view the Risk Disclosures Statement on http://www.phillip.com.hk.

If you DO NOT wish to receive further marketing emails from us, please click HERE to opt-out.

版權所有, 翻印必究。

Copyright(C) 2014 Phillip Securities (HK) Ltd. All Rights Reserved.


Copyright © 2011 Phillip Securities Group. All Rights Reserved [ Risk Disclosures Statement ] [ Terms and Conditions ] [ Personal Data Policy ]