july 18, 2021 hong kong strategy
TRANSCRIPT
Strategy Note Hong Kong│July 18, 2021
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Hong Kong Strategy Short Selling Analysis for July 9 ■ The HKSFC released the aggregate short positions data for July 9. ■ There was a sizable decline in short positions in 3S Bio (1530.HK), HKTV (1137.HK),
China East Education (0667.HK) and Yadea Group (1585.HK).
Overview for the week ended July 9 Last Friday, the HKSFC released the aggregate short positions data for July 9. We analyzed which companies may be vulnerable to short-selling activity, based on the following three criteria: (i) the net change in short positions between July 2 and July 9; (ii) short positions as a percentage of free float; and (iii) the absolute amount of short positions. We must emphasize this is only an objective quantitative analysis based on official data; the analysis does NOT imply that we feel uncomfortable with the corporate governance or fundamentals of some companies. According to the results of our analysis, we note a sizable decline in short positions in 3S Bio and HKTV, China East Education and Yadea Group.
3SBio 1530.HK Short positions in 3SBio decreased 11.8% during the week ended July 9 (Figure 4). The outstanding short positions were equivalent to 13.05% of its free float. The five-day moving average short-selling amount during the week ended July 16 was HK$14.04m, down from HK$16.99m in the week ended July 9.
HKTV 1137.HK Short positions in HKTV decreased 12.8% during the week ended July 9 (Figure 4). The outstanding short positions were equivalent to 6.29% of its free float. The five-day moving average short-selling amount during the week ended July 16 was HK$3.53m, down from HK$5.26m in the week ended July 9.
China East Education 0667.HK Short positions in China East Education decreased 30.9% during the week ended July 9 (Figure 4). The outstanding short positions were equivalent to 5.03% of its free float. The five-day moving average short-selling amount during the week ended July 16 was HK$9.69m, down from HK$11.90m in the week ended July 9.
Yadea Group 1585.HK Short positions in Yadea Group decreased 10.3% during the week ended July 9 (Figure 4). The outstanding short positions were equivalent to 4.20% of its free float. The five-day moving average short-selling amount during the week ended July 16 was HK$10.12m, down from HK$25.33m in the week ended July 9.
Recap: Source of data The HKSFC releases the aggregate short positions in all eligible stocks every Friday, with a delay of one week. The HKEx releases the data on short-selling activity on a daily basis (without a one-week delay), but investors do not know whether the short positions are covered or not later. Therefore, the usefulness of the HKSFC data is that it provides the outstanding short positions in each stock, and investors can trace the net change on a weekly basis. However, there are still some limitations, as this data set cannot cover short-selling activity using OTC derivative products.
Three angles to analyzing the data (i) The net change in short positions between July 2 and July 9; (ii) short positions as a percentage of free float; and (iii) the absolute amount of the short positions.
Hong Kong
Insert
Analyst(s)
Mark Lau
T (852) 3698 6393
Mark Po T (852) 3698 6318 E [email protected]
2
Hong Kong
Strategy Note│July 18, 2021
Figure 1: Review of stock highlights last week
SOURCES: BLOOMBERG, CGIS RESEARCH
Figure 2: Comparison between the HSI Index and the ratio of short-selling turnover to HK turnover
SOURCES: BLOOMBERG, CGIS RESEARCH
Figure 3: Short-selling turnover (HK$m)
SOURCES: BLOOMBERG, CGIS RESEARCH
Ticker Company name
Market cap
(HK$m)
2020F P/E
(x)
2021F
P/E (x)
P/BV
(x)
Dividend
yield (%)
Price on
July 9
(HK$)
Price on
July 16
(HK$) Change
2126 HK Equity JW Cayman Therapeutics Co Ltd 9,600 #N/A N/A #N/A N/A 2.25 - 21.10 23.90 13.3%
1530 HK Equity 3SBio Inc 21,694 13.49 11.69 1.69 - 8.27 8.51 2.9%
175 HK Equity Geely Automobile Holdings Ltd 239,134 24.10 18.51 3.30 1.22 23.65 24.35 3.0%
Short positions increased significantly during the week ended July 2
Short positions dropped significantly during the week ended July 2
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
22.00%
20,000
22,000
24,000
26,000
28,000
30,000
32,0002019/6
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2021/6
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2021/7
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Hang Seng Index Ratio of short selling turnover to HK turnover (RHS)
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
Short Selling Turnover (HK$m)
3
Hong Kong
Strategy Note│July 18, 2021
Figure 4: Top 50 short selling stocks (ranked by net change between July 2 and July 9, descending order)
SOURCES: HKSFC, BLOOMBERG, CGIS RESEARCH
Ticker Company name
Aggregated reportable
short positions on Jul 9
(shares)
A ggregated reportable
short positions on Jul 9
(HK$)
% of free
float
Change in short
positions
compared with
Jul 2
Price on
Jul9
(HK$)
Price on
Jul 16
(HK$)
Price
change
during the
period
Market cap
(HK$m)
2021F P/E
(x)
2022F
P/E (x)P/BV (x)
Dividend
yield (%)
Aggregated
reportable
short positions
on Jul 9/ 3-
month average
daily turnover
1862 JINGRUI HLDGS 1,249,000 2,647,880 0.25% Increase from nill 2.12 2.16 1.9% 3,324 3.60 2.43 0.45 n.a. 0.56
9868 XPENG-W 200,000 31,160,000 0.02% Increase from nill 155.8 150.9 -3.1% 257,096 310.21 111.18 n.a. n.a. n.a.
8032 VIVA CHINA 22,456,000 42,217,280 0.90% 294.8% 1.88 1.64 -12.8% 15,648 n.a. n.a. 4.59 n.a. 1.13
123 YUEXIU PROPERTY 2,696,839 21,547,744 0.21% 189.6% 7.99 8.13 1.8% 25,174 5.36 4.14 0.48 8.17 0.67
2127 HUISEN INTL 2,042,000 5,411,300 0.43% 163.1% 2.65 2.41 -9.1% 7,397 8.36 6.92 1.53 4.83 0.13
951 CHAOWEI POWER 840,000 2,200,800 0.17% 151.5% 2.62 2.59 -1.1% 2,860 0.83 0.76 0.46 n.a. 0.87
3316 BINJIANG SER 262,500 8,098,125 0.32% 145.3% 30.85 32.3 4.7% 8,928 22.93 15.08 8.83 1.23 0.49
316 OOIL 1,088,978 170,533,955 0.87% 132.5% 156.6 145 -7.4% 92,393 2.09 3.16 2.07 17.98 0.77
6989 EXCELLENCE CM 2,133,889 15,705,423 0.73% 109.6% 7.36 7.44 1.1% 9,095 13.86 9.99 2.38 2.15 0.77
1952 EVEREST MED-B 619,909 44,013,539 0.42% 99.4% 71 68 -4.2% 20,245 n.a. n.a. 2.45 0.00 1.46
3633 ZHONGYU GAS 1,168,000 7,568,640 0.14% 94.0% 6.48 6.68 3.1% 17,669 n.a. n.a. 2.94 n.a. 1.59
710 BOE VARITRONIX 600,000 5,460,000 0.08% 91.1% 9.1 9.44 3.7% 6,946 n.a. n.a. 2.56 n.a. 0.30
9626 BILIBILI-SW 1,161,566 926,929,668 0.46% 90.4% 798 867 8.6% 333,242 n.a. n.a. n.a. n.a. 1.86
3347 TIGERMED 3,542,031 553,619,445 2.57% 88.1% 156.3 175.2 12.1% 179,502 87.98 70.74 n.a. 0.43 3.44
1428 BRIGHT SMART 9,430,000 18,199,900 1.57% 86.7% 1.93 1.9 -1.6% 3,225 n.a. n.a. 1.51 n.a. 2.07
6127 JOINN 234,177 25,384,787 0.48% 82.0% 108.4 127 17.2% 56,534 88.11 65.15 27.54 0.37 0.63
6998 JHBP-B 1,507,138 23,119,497 0.92% 78.1% 15.34 14.76 -3.8% 7,288 n.a. n.a. 1.87 n.a. 1.62
1258 CHINFMINING 12,105,000 49,025,250 1.11% 77.7% 4.05 3.88 -4.2% 14,507 5.26 4.16 1.57 n.a. 0.41
3813 POU SHENG INT'L 8,980,540 15,805,750 0.45% 77.4% 1.76 1.74 -1.1% 9,321 6.74 5.07 1.00 1.59 1.80
6111 DAFA PPT 2,014,000 11,681,200 0.89% 72.6% 5.8 5.76 -0.7% 4,769 8.37 7.38 0.96 2.61 1.78
2126 JW THERAP-B 5,684,083 119,934,151 2.09% 66.2% 21.1 23.9 13.3% 9,600 n.a. n.a. 2.25 0.00 1.14
2019 DEXIN CHINA 4,338,000 12,797,100 0.58% 64.8% 2.95 2.92 -1.0% 7,888 4.80 4.34 1.12 7.12 2.35
1385 SHANGHAI FUDAN 3,603,000 80,166,750 1.16% 64.4% 22.25 25.85 16.2% 17,953 65.22 53.80 7.74 n.a. 1.22
9666 JINKE SERVICES 3,088,572 206,625,467 2.52% 60.7% 66.9 63.15 -5.6% 41,227 31.39 20.80 1.11 1.38 2.55
400 COGOBUY 6,189,795 17,702,814 1.18% 57.7% 2.86 2.57 -10.1% 3,640 n.a. n.a. 0.77 n.a. 2.53
2628 CHINA LIFE 182,834,191 2,545,051,939 2.44% 57.0% 13.92 14.02 0.7% 878,929 5.62 5.13 0.71 6.41 4.01
1919 COSCO SHIP HOLD 447,983,707 6,495,763,752 16.00% 55.2% 14.5 13.9 -4.1% 368,185 2.27 5.10 3.10 2.97 5.13
1966 CHINA SCE PPT 29,101,052 87,012,145 1.69% 52.6% 2.99 3.2 7.0% 13,511 2.80 2.29 0.54 11.04 3.55
1477 OCUMENSION-B 2,224,352 56,832,194 0.89% 50.3% 25.55 26.95 5.5% 17,011 n.a. n.a. 5.30 n.a. 1.65
1093 CSPC PHARMA 81,207,349 825,066,666 0.90% 49.9% 10.16 10.9 7.3% 130,514 19.94 17.22 4.87 1.51 1.44
1212 LIFESTYLE INT'L 8,834,618 50,180,630 2.33% 47.4% 5.68 5.74 1.1% 8,621 9.47 7.47 2.24 1.59 9.47
2131 NETJOY 8,612,000 45,557,480 3.39% 47.4% 5.29 4.84 -8.5% 3,872 12.21 8.06 2.14 n.a. 5.11
9991 BAOZUN-SW 203,855 16,981,122 0.11% 45.1% 83.3 85.8 3.0% 20,170 26.82 18.84 n.a. 0.00 2.76
173 K. WAH INT'L 4,636,827 17,017,155 0.43% 43.8% 3.67 3.68 0.3% 11,507 n.a. n.a. 0.29 5.71 2.86
9999 NTES-S 12,037,693 2,012,702,270 0.58% 43.4% 167.2 177.7 6.3% 596,166 27.72 23.72 n.a. 0.71 4.03
6919 RENRUI HR 1,592,200 16,749,944 1.99% 42.0% 10.52 10.28 -2.3% 1,609 6.01 5.37 1.09 4.67 2.24
2611 GTJA 3,108,300 33,507,474 0.39% 41.8% 10.78 10.32 -4.3% 168,026 5.95 5.35 0.61 6.61 1.15
9888 BIDU-SW 5,016,836 874,936,198 0.22% 40.9% 174.4 179.3 2.8% 507,211 19.01 16.12 n.a. 0.00 1.50
6818 CEB BANK 37,959,550 107,425,527 0.51% 40.5% 2.83 2.86 1.1% 217,556 3.27 2.98 0.33 9.49 2.63
1760 INTRON TECH 916,000 3,810,560 0.31% 38.6% 4.16 4.01 -3.6% 4,347 18.55 15.18 2.68 1.80 0.86
345 VITASOY INT'L 89,992,900 2,380,312,205 13.14% 37.7% 26.45 24.75 -6.4% 26,419 38.49 32.82 7.30 1.63 34.49
1122 QINGLING MOTORS 360,000 594,000 0.05% 37.4% 1.65 1.66 0.6% 4,121 n.a. n.a. 0.45 n.a. 0.16
564 ZMJ 13,716,000 138,531,600 6.83% 37.3% 10.1 9.05 -10.4% 21,645 7.39 5.23 1.00 n.a. 4.47
1766 CRRC 27,869,681 92,806,038 0.62% 35.9% 3.33 3.4 2.1% 187,554 6.74 6.11 0.56 5.76 1.00
6978 IMMUNOTECH-B 1,784,640 31,409,664 1.33% 34.5% 17.6 19.76 12.3% 10,168 n.a. 17.32 2.92 n.a. 0.80
6806 SWHY 5,562,400 11,625,416 0.79% 33.0% 2.09 2.05 -1.9% 126,128 5.17 4.61 0.47 5.86 2.43
1773 TIANLI EDU 31,219,000 84,603,490 2.59% 29.4% 2.71 2.75 1.5% 5,957 9.27 6.54 1.50 2.31 1.03
1668 CHINASOUTHCITY 49,648,800 39,719,040 1.20% 29.3% 0.8 0.81 1.3% 6,554 2.79 2.57 0.17 4.32 4.91
813 SHIMAO PROPERTY 29,808,831 534,174,252 2.40% 29.3% 17.92 18.16 1.3% 64,245 3.83 3.31 0.57 10.62 5.35
272 SHUI ON LAND 22,097,008 27,179,320 0.59% 29.0% 1.23 1.3 5.7% 10,481 n.a. n.a. 0.23 n.a. 1.98
4
Hong Kong
Strategy Note│July 18, 2021
Figure 5: Top 50 short selling stocks (ranked by net change between July 2 and July 9, ascending order)
SOURCES: HKSFC, BLOOMBERG, CGIS RESEARCH
Ticker Company name
Aggregated reportable
short positions on Jul 9
(shares)
A ggregated reportable
short positions on Jul 9
(HK$)
% of free
float
Change in short
positions
compared with
Jul 2
Price on
Jul9
(HK$)
Price on
Jul 16
(HK$)
Price
change
during the
period
Market cap
(HK$m)
2021F P/E
(x)
2022F
P/E (x)P/BV (x)
Dividend
yield (%)
Aggregated
reportable short
positions on Jul
9/ 3-month
average daily
turnover
1817 MULSANNE GROUP 1,133,000 7,092,580 0.54% -47.4% 6.26 6.86 9.6% 6,517 n.a. n.a. 6.66 n.a. 0.90
506 CHINA FOODS 1,034,000 2,760,780 0.14% -39.9% 2.67 2.73 2.2% 7,636 11.84 10.52 1.28 3.96 1.20
667 CHINA EAST EDU 24,062,978 256,511,345 5.03% -30.9% 10.66 9.83 -7.8% 21,647 17.83 14.72 2.98 1.91 4.91
440 DAH SING 227,733 5,716,098 0.15% -29.7% 25.1 25.15 0.2% 8,037 5.29 4.67 0.28 5.59 0.44
3983 CHINA BLUECHEM 17,592,009 47,322,504 1.12% -29.6% 2.69 2.84 5.6% 13,092 7.39 9.20 0.74 7.19 2.67
6160 BEIGENE 495,755 95,680,715 0.07% -28.5% 193 198 2.6% 237,788 n.a. n.a. 7.62 0.00 1.30
6078 HYGEIA HEALTH 1,348,793 125,370,309 0.66% -27.5% 92.95 93.55 0.6% 57,814 115.05 79.39 11.28 0.05 0.40
1839 CIMC VEHICLES 238,500 1,695,735 0.10% -26.7% 7.11 6.7 -5.8% 25,743 7.34 6.72 0.32 n.a. 0.44
189 DONGYUE GROUP 41,979,725 419,377,453 3.55% -25.9% 9.99 11.3 13.1% 23,862 17.17 13.79 2.33 2.05 2.63
1907 CHINA RISUN GP 3,134,000 15,105,880 0.34% -25.9% 4.82 4.77 -1.0% 21,179 4.50 3.87 2.00 4.28 0.30
9901 NEW ORIENTAL-S 2,409,240 117,209,526 0.14% -24.1% 48.65 53.55 10.1% 91,796 24.27 16.53 n.a. 0.10 0.59
2768 JIAYUAN INTL 1,646,069 5,086,353 0.08% -23.0% 3.09 3.11 0.6% 15,226 n.a. n.a. 0.77 n.a. 0.52
2877 SHINEWAY PHARM 1,121,000 8,183,300 0.32% -21.4% 7.3 9.18 25.8% 7,592 9.44 8.73 1.09 3.14 0.91
2386 SINOPEC SEG 28,001,421 125,166,352 1.89% -21.0% 4.47 4.53 1.3% 20,059 6.53 6.20 0.59 8.51 4.50
2099 CHINAGOLDINTL 689,500 13,893,425 0.29% -20.9% 20.15 20.05 -0.5% 7,948 6.79 6.00 0.65 n.a. 0.56
1316 NEXTEER 17,587,338 184,315,302 2.03% -20.6% 10.48 10.3 -1.7% 25,846 13.96 10.78 1.77 1.51 1.98
235 CHINA STRATEGIC 103,970,000 11,124,790 0.73% -19.7% 0.107 0.099 -7.5% 2,018 n.a. n.a. 0.34 n.a. 2.16
1209 CHINA RES MIXC 7,282,823 339,379,552 1.46% -19.2% 46.6 50.7 8.8% 115,723 65.85 47.27 7.73 0.58 1.89
2314 LEE & MAN PAPER 14,239,409 92,556,159 1.19% -18.4% 6.5 6.42 -1.2% 27,905 6.99 6.66 0.91 4.95 3.32
382 EDVANTAGE GROUP 3,620,000 25,919,200 1.16% -18.4% 7.16 6.97 -2.7% 7,471 13.78 9.95 2.67 2.09 1.40
135 KUNLUN ENERGY 42,209,348 286,179,379 1.14% -17.7% 6.78 6.86 1.2% 59,399 5.32 9.23 0.92 3.26 1.83
6889 DYNAM JAPAN 163,200 1,196,256 0.09% -17.6% 7.33 7.38 0.7% 5,555 n.a. n.a. 0.60 n.a. 0.75
2138 UM HEALTHCARE 2,742,000 40,746,120 0.92% -17.6% 14.86 14.4 -3.1% 15,981 41.98 29.21 13.56 1.81 0.55
1513 LIVZON PHARMA 2,706,919 87,568,830 1.83% -17.5% 32.35 32.05 -0.9% 42,512 12.76 11.16 1.99 4.90 2.38
148 KINGBOARD CHEM 3,332,575 133,136,371 0.48% -16.6% 39.95 43.65 9.3% 48,399 5.63 5.27 0.86 4.81 0.99
732 TRULY INT'L 24,220,347 57,402,222 1.42% -16.2% 2.37 2.28 -3.8% 7,499 n.a. n.a. 0.80 n.a. 1.40
1521 FRONTAGE 9,503,714 64,910,367 1.51% -15.9% 6.83 7.66 12.2% 15,713 82.17 58.00 6.98 n.a. 0.76
317 COMEC 2,024,949 14,397,387 0.84% -15.7% 7.11 6.99 -1.7% 24,394 n.a. n.a. 0.58 n.a. 1.45
546 FUFENG GROUP 2,686,567 6,743,283 0.18% -15.2% 2.51 2.45 -2.4% 6,207 4.58 3.92 0.44 7.84 1.83
1211 BYD COMPANY 46,910,371 10,142,022,210 5.81% -15.1% 216.2 212.4 -1.8% 708,068 101.63 73.10 6.27 0.10 4.92
867 CMS 25,668,869 470,767,057 1.98% -15.0% 18.34 18.94 3.3% 46,796 13.15 11.54 3.53 2.89 3.41
9992 POP MART 31,408,900 2,187,629,885 11.86% -14.6% 69.65 70.6 1.4% 98,977 75.65 48.30 13.44 0.42 9.92
1478 Q TECH 17,768,454 265,816,072 3.83% -14.2% 14.96 16.84 12.6% 19,905 14.82 12.27 4.34 0.97 3.48
3913 KWG LIVING 16,949,874 156,786,335 1.98% -13.7% 9.25 9.5 2.7% 19,169 22.93 14.23 5.40 1.44 2.68
3613 TONGRENTANGCM 4,329,358 51,605,947 1.81% -13.1% 11.92 12.04 1.0% 10,079 16.72 14.68 3.34 2.10 2.30
1137 HKTV 31,838,229 331,117,582 6.29% -12.8% 10.4 10.34 -0.6% 9,475 47.00 29.54 4.49 0.00 10.61
973 L'OCCITANE 327,250 9,637,513 0.08% -12.8% 29.45 29.6 0.5% 43,718 25.41 21.23 4.58 1.15 0.54
1848 CALC 2,236,033 13,192,595 0.93% -12.7% 5.9 5.96 1.0% 4,372 5.02 4.26 1.10 11.86 8.37
116 CHOW SANG SANG 2,455,899 30,944,327 0.69% -12.7% 12.6 12.86 2.1% 8,712 8.65 7.27 0.72 4.96 3.28
2359 WUXI APPTEC 23,517,168 4,016,732,294 6.18% -12.1% 170.8 190.1 11.3% 582,238 103.04 79.77 13.19 0.22 11.67
2328 PICC P&C 98,630,973 684,498,953 1.41% -12.1% 6.94 7.05 1.6% 156,811 5.53 5.19 0.70 7.34 3.46
1530 3SBIO 147,384,537 1,218,870,121 13.05% -11.8% 8.27 8.51 2.9% 21,694 13.50 11.69 1.69 0.00 4.53
2013 WEIMOB INC 325,113,894 4,798,681,075 23.95% -11.6% 14.76 12.74 -13.7% 32,711 200.13 102.98 22.82 0.00 9.29
392 BEIJING ENT 4,019,763 102,302,968 0.84% -10.8% 25.45 25.55 0.4% 32,245 4.05 3.72 0.38 5.41 2.55
2001 NEW HIGHER EDU 21,658,988 107,211,991 2.96% -10.7% 4.95 4.69 -5.3% 7,438 10.30 7.87 2.42 2.79 3.29
6098 CG SERVICES 31,964,995 2,429,339,620 1.78% -10.5% 76 77.85 2.4% 251,220 47.76 32.33 13.05 0.52 3.82
1585 YADEA 42,745,867 731,809,243 4.20% -10.3% 17.12 16.5 -3.6% 49,418 28.15 20.32 11.46 1.64 6.01
1763 CIRC 489,800 14,449,100 0.78% -10.3% 29.5 29.85 1.2% 9,548 20.04 16.46 2.04 n.a. 2.14
1929 CHOW TAI FOOK 60,781,851 1,039,369,652 3.71% -10.3% 17.1 16.02 -6.3% 160,200 23.63 20.33 5.21 3.13 5.18
763 ZTE 28,400,721 621,975,790 3.19% -10.0% 21.9 25.8 17.8% 185,707 15.92 13.29 2.29 1.42 3.27
5
Hong Kong
Strategy Note│July 18, 2021
Figure 6: Top 50 short selling stocks (ranked by percentage of free float)
SOURCES: HKSFC, BLOOMBERG, CGIS RESEARCH
Ticker Company name
Aggregated reportable
short positions on Jul 9
(shares)
A ggregated reportable
short positions on Jul
9 (HK$)
% of free
float
Change in short
positions
compared with
Jul 2
Price on
Jul9
(HK$)
Price on
Jul 16
(HK$)
Price
change
during the
period
Market cap
(HK$m)2021F P/E (x)
2022F
P/E (x)P/BV (x)
Dividend
yield (%)
Aggregated
reportable
short
positions on
Jul 9/ 3-month
average daily
turnover
2400 XD INC 35,834,988 2,157,266,278 65.67% 10.3% 60.2 64.3 6.8% 30,892 n.a. 101.39 10.59 0.00 8.24
881 ZHONGSHENG HLDG 231,199,096 17,443,971,793 38.34% 4.2% 75.45 76.3 1.1% 180,269 20.58 16.47 5.46 0.97 70.04
2208 GOLDWIND 195,420,917 2,364,593,096 25.77% -3.2% 12.1 11.86 -2.0% 62,239 11.64 11.14 1.22 2.77 29.73
2013 WEIMOB INC 325,113,894 4,798,681,075 23.95% -11.6% 14.76 12.74 -13.7% 32,711 200.13 102.98 22.82 0.00 9.29
293 CATHAY PAC AIR 209,894,068 1,406,290,256 21.91% 0.6% 6.7 6.64 -0.9% 42,743 n.a. 22.90 0.80 0.00 32.17
1833 PA GOODDOCTOR 100,738,122 8,446,891,530 21.36% 5.0% 83.85 83.6 -0.3% 95,914 n.a. n.a. 5.04 0.00 21.28
819 TIANNENG POWER 134,776,986 1,970,439,535 21.33% 2.4% 14.62 13.9 -4.9% 15,653 4.86 4.35 1.49 3.96 31.50
1317 MAPLELEAF EDU 294,282,633 544,422,871 20.81% 0.4% 1.85 1.84 -0.5% 5,511 7.98 6.78 0.97 2.94 19.61
1119 IDREAMSKY 123,922,844 767,082,404 20.32% 13.4% 6.19 6.8 9.9% 8,606 25.39 17.00 2.02 n.a. 11.98
992 LENOVO GROUP 1,092,434,539 9,755,440,433 19.62% 1.7% 8.93 8.08 -9.5% 97,297 8.89 8.39 3.51 4.33 20.51
6865 FLAT GLASS 76,243,655 2,413,111,681 18.67% -1.1% 31.65 31.5 -0.5% 97,583 27.35 23.54 5.20 0.83 10.29
9990 ARCHOSAUR GAMES 26,735,951 347,567,363 17.35% 3.5% 13 12.14 -6.6% 9,900 8.92 6.50 2.24 1.88 10.62
1789 AK MEDICAL 69,242,774 872,458,952 16.78% 7.7% 12.6 12.52 -0.6% 13,966 30.13 27.43 5.69 0.96 7.37
1117 CH MODERN D 422,072,759 704,861,508 16.50% 3.1% 1.67 1.64 -1.8% 11,658 10.27 7.50 1.12 0.88 13.94
1797 KOOLEARN 35,636,501 300,772,068 16.11% 5.7% 8.44 7.96 -5.7% 7,966 n.a. n.a. 4.94 0.00 3.38
1919 COSCO SHIP HOLD 447,983,707 6,495,763,752 16.00% 55.2% 14.5 13.9 -4.1% 368,185 2.27 5.10 3.10 2.97 5.13
1579 YIHAI INTL 69,232,217 3,582,767,230 15.42% 4.4% 51.75 54.2 4.7% 56,742 41.40 32.42 14.34 0.65 11.79
3333 EVERGRANDE 296,096,354 2,804,032,472 14.74% 1.0% 9.47 9.8 3.5% 129,829 4.52 4.53 0.74 4.73 12.68
3331 VINDA INT'L 41,435,003 940,574,568 14.45% 1.3% 22.7 20.55 -9.5% 24,677 11.22 10.12 2.11 2.53 17.64
1873 VIVA BIOTECH 99,940,775 911,459,868 14.40% -4.7% 9.12 8.45 -7.3% 16,283 39.52 21.98 3.58 2.99 5.79
1024 KUAISHOU-W 68,966,054 10,538,013,051 14.22% 10.0% 152.8 151 -1.2% 628,183 n.a. 419.06 n.a. 0.00 7.48
347 ANGANG STEEL 220,829,394 1,071,022,561 14.18% 0.5% 4.85 5.35 10.3% 53,062 6.27 5.60 0.76 5.05 7.24
1458 ZHOU HEI YA 144,884,846 1,264,844,706 14.10% -0.3% 8.73 8.85 1.4% 21,091 33.34 22.74 4.40 1.74 11.29
6049 POLY PPT DEV 19,558,644 946,638,370 13.94% 1.1% 48.4 46.65 -3.6% 25,813 24.40 18.93 3.48 1.32 8.99
285 BYD ELECTRONIC 87,781,069 3,980,871,479 13.80% -4.0% 45.35 45.1 -0.6% 101,620 18.22 14.15 3.80 0.48 7.65
772 CHINA LIT 49,097,332 3,959,699,826 13.61% -1.0% 80.65 84.25 4.5% 85,834 52.23 40.62 4.72 0.00 19.17
9923 YEAHKA 20,939,454 926,570,840 13.51% 2.6% 44.25 42.55 -3.8% 19,228 32.12 25.99 8.29 0.00 7.75
1044 HENGAN INT'L 68,739,062 3,577,868,177 13.23% -0.1% 52.05 48.7 -6.4% 57,346 10.64 10.11 2.48 6.07 30.61
345 VITASOY INT'L 89,992,900 2,380,312,205 13.14% 37.7% 26.45 24.75 -6.4% 26,419 38.49 32.82 7.30 1.63 34.49
1530 3SBIO 147,384,537 1,218,870,121 13.05% -11.8% 8.27 8.51 2.9% 21,694 13.50 11.69 1.69 0.00 4.53
6185 CANSINOBIO-B 9,539,838 3,121,434,994 12.89% 2.6% 327.2 314.8 -3.8% 132,975 10.77 6.11 10.68 0.00 5.35
6169 YUHUA EDU 167,356,259 1,089,489,246 12.62% -5.6% 6.51 6.12 -6.0% 20,533 12.83 11.15 4.17 4.04 10.72
1368 XTEP INT'L 145,558,599 2,311,470,552 12.60% 2.5% 15.88 14.58 -8.2% 38,329 40.19 33.08 4.28 1.55 6.20
6618 JD HEALTH 61,915,160 6,095,547,502 12.55% 11.3% 98.45 100.6 2.2% 320,347 284.88 172.34 13.59 0.00 10.83
6862 HAIDILAO 136,196,722 6,013,085,276 12.47% 5.0% 44.15 44.8 1.5% 244,563 47.09 32.41 19.32 0.56 10.51
1988 MINSHENG BANK 857,729,952 3,182,178,122 12.30% 0.3% 3.71 3.75 1.1% 211,800 3.80 3.50 0.26 8.14 26.68
839 CHINA EDU GROUP 90,073,978 1,513,242,830 11.98% -3.2% 16.8 16.34 -2.7% 37,140 20.83 17.24 2.56 2.31 11.56
9928 TIMES NEIGHBOR 54,657,422 350,900,649 11.88% 14.4% 6.42 6.19 -3.6% 6,101 12.54 8.43 2.95 2.46 9.27
9992 POP MART 31,408,900 2,187,629,885 11.86% -14.6% 69.65 70.6 1.4% 98,977 75.65 48.30 13.44 0.42 9.92
6808 SUNART RETAIL 237,523,215 1,289,751,057 11.54% -1.3% 5.43 5.69 4.8% 54,281 18.87 16.74 1.83 2.11 22.58
493 GOME RETAIL 1,411,986,752 1,341,387,414 11.00% -0.9% 0.95 0.94 -1.1% 22,403 n.a. n.a. 3.20 n.a. 10.56
3360 FE HORIZON 178,400,827 1,439,694,674 10.99% -1.1% 8.07 8.26 2.4% 34,398 5.16 4.53 0.80 4.87 37.38
9922 JIUMAOJIU 74,034,011 2,306,159,443 10.75% -1.8% 31.15 32.15 3.2% 46,727 78.96 51.08 12.90 0.33 11.87
1812 CHENMING PAPER 36,457,410 180,099,605 10.21% -2.8% 4.94 5.06 2.4% 24,703 2.79 3.20 0.62 13.89 2.77
3888 KINGSOFT 85,924,645 3,574,465,232 10.19% -4.7% 41.6 42.65 2.5% 58,547 47.86 30.32 1.96 0.33 8.24
1876 BUD APAC 175,328,315 4,137,748,234 9.98% 0.7% 23.6 24.5 3.8% 324,463 42.05 34.66 3.91 0.89 25.55
968 XINYI SOLAR 415,337,165 6,470,953,031 9.91% -4.3% 15.58 15.32 -1.7% 136,181 23.14 22.30 5.09 1.90 7.73
2018 AAC TECH 62,000,394 3,298,420,961 9.75% -3.8% 53.2 51.85 -2.5% 62,661 20.84 17.19 2.47 1.19 7.70
520 XIABUXIABU 47,149,680 388,984,860 9.57% 13.3% 8.25 8.51 3.2% 9,237 16.21 12.77 3.31 1.93 3.93
3998 BOSIDENG 286,963,912 1,526,648,012 9.38% -1.8% 5.32 5.28 -0.8% 57,087 23.02 18.63 4.65 3.14 9.85
6
Hong Kong
Strategy Note│July 18, 2021
Figure 7: Top 50 short selling stocks (ranked by absolute amount)
SOURCES: HKSFC, BLOOMBERG, CGIS RESEARCH
Ticker Company name
Aggregated reportable
short positions on Jul 9
(shares)
A ggregated reportable
short positions on Jul 9
(HK$)
% of free
float
Change in short
positions
compared with Jul
2
Price on
Jul9
(HK$)
Price on
Jul 16
(HK$)
Price
change
during the
period
Market cap
(HK$m)2021F P/E (x)
2022F P/E
(x)P/BV (x)
Dividend
yield (%)
Aggregated
reportable short
positions on Jul
9/ 3-month
average daily
turnover
2318 PING AN 529,689,641 37,740,386,921 8.90% 2.1% 71.25 73.4 3.0% 1,323,424 7.18 6.21 1.45 3.96 13.91
881 ZHONGSHENG HLDG 231,199,096 17,443,971,793 38.34% 4.2% 75.45 76.3 1.1% 180,269 20.58 16.47 5.46 0.97 70.04
2020 ANTA SPORTS 75,159,636 13,934,596,514 6.62% 3.7% 185.4 186.5 0.6% 504,171 52.51 40.44 17.48 0.69 10.55
3968 CM BANK 225,362,030 13,871,032,947 5.20% 9.2% 61.55 64.8 5.3% 1,561,153 12.27 10.68 2.03 2.67 16.37
700 TENCENT 24,076,754 12,965,332,029 0.38% -2.0% 538.5 564 4.7% 5,412,088 31.83 25.64 5.91 0.34 1.15
3690 MEITUAN-W 39,866,284 11,130,666,493 0.96% -0.5% 279.2 290.8 4.2% 1,782,277 n.a. 829.14 14.59 0.00 1.43
1024 KUAISHOU-W 68,966,054 10,538,013,051 14.22% 10.0% 152.8 151 -1.2% 628,183 n.a. 419.06 n.a. 0.00 7.48
1211 BYD COMPANY 46,910,371 10,142,022,210 5.81% -15.1% 216.2 212.4 -1.8% 708,068 101.63 73.10 6.27 0.10 4.92
992 LENOVO GROUP 1,092,434,539 9,755,440,433 19.62% 1.7% 8.93 8.08 -9.5% 97,297 8.89 8.39 3.51 4.33 20.51
1833 PA GOODDOCTOR 100,738,122 8,446,891,530 21.36% 5.0% 83.85 83.6 -0.3% 95,914 n.a. n.a. 5.04 0.00 21.28
9988 BABA-SW 38,967,016 7,618,051,628 0.24% 20.8% 195.5 209.4 7.1% 4,541,666 22.29 18.15 n.a. 0.00 1.59
1810 XIAOMI-W 252,224,331 6,734,389,638 1.56% -2.1% 26.7 28.25 5.8% 708,605 29.40 24.71 3.66 0.00 1.77
2382 SUNNY OPTICAL 29,126,092 6,704,826,378 4.42% -0.7% 230.2 226 -1.8% 247,888 34.91 28.39 12.43 0.56 5.26
1919 COSCO SHIP HOLD 447,983,707 6,495,763,752 16.00% 55.2% 14.5 13.9 -4.1% 368,185 2.27 5.10 3.10 2.97 5.13
968 XINYI SOLAR 415,337,165 6,470,953,031 9.91% -4.3% 15.58 15.32 -1.7% 136,181 23.14 22.30 5.09 1.90 7.73
6618 JD HEALTH 61,915,160 6,095,547,502 12.55% 11.3% 98.45 100.6 2.2% 320,347 284.88 172.34 13.59 0.00 10.83
6862 HAIDILAO 136,196,722 6,013,085,276 12.47% 5.0% 44.15 44.8 1.5% 244,563 47.09 32.41 19.32 0.56 10.51
2333 GREATWALL MOTOR 202,978,391 5,581,905,753 6.55% -4.0% 27.5 27.85 1.3% 413,663 25.88 19.65 3.76 1.79 5.90
388 HKEX 10,996,302 5,388,187,980 0.81% -1.6% 490 524 6.9% 664,347 45.42 39.11 14.07 1.97 2.59
2269 WUXI BIO 37,491,203 5,038,817,683 1.03% 20.0% 134.4 139.9 4.1% 592,913 187.56 130.43 23.14 0.00 2.50
2013 WEIMOB INC 325,113,894 4,798,681,075 23.95% -11.6% 14.76 12.74 -13.7% 32,711 200.13 102.98 22.82 0.00 9.29
11 HANG SENG BANK 29,944,518 4,566,538,995 4.13% 4.4% 152.5 152.8 0.2% 292,130 17.11 15.39 1.70 3.90 20.06
1299 AIA 48,051,263 4,543,246,917 0.39% 10.7% 94.55 96.15 1.7% 1,163,092 21.98 19.58 2.37 1.49 2.30
241 ALI HEALTH 273,825,837 4,151,199,689 6.74% 6.2% 15.16 15.22 0.4% 205,293 287.99 175.99 11.95 0.00 7.63
1876 BUD APAC 175,328,315 4,137,748,234 9.98% 0.7% 23.6 24.5 3.8% 324,463 42.05 34.66 3.91 0.89 25.55
9618 JD-SW 14,726,112 4,108,585,248 0.74% 20.5% 279 298 6.8% 929,155 44.63 29.07 n.a. 0.00 2.91
2359 WUXI APPTEC 23,517,168 4,016,732,294 6.18% -12.1% 170.8 190.1 11.3% 582,238 103.04 79.77 13.19 0.22 11.67
285 BYD ELECTRONIC 87,781,069 3,980,871,479 13.80% -4.0% 45.35 45.1 -0.6% 101,620 18.22 14.15 3.80 0.48 7.65
772 CHINA LIT 49,097,332 3,959,699,826 13.61% -1.0% 80.65 84.25 4.5% 85,834 52.23 40.62 4.72 0.00 19.17
1579 YIHAI INTL 69,232,217 3,582,767,230 15.42% 4.4% 51.75 54.2 4.7% 56,742 41.40 32.42 14.34 0.65 11.79
1044 HENGAN INT'L 68,739,062 3,577,868,177 13.23% -0.1% 52.05 48.7 -6.4% 57,346 10.64 10.11 2.48 6.07 30.61
3888 KINGSOFT 85,924,645 3,574,465,232 10.19% -4.7% 41.6 42.65 2.5% 58,547 47.86 30.32 1.96 0.33 8.24
2688 ENN ENERGY 24,024,183 3,533,957,319 2.90% -1.0% 147.1 160.2 8.9% 180,964 20.54 18.15 4.91 1.70 12.53
268 KINGDEE INT'L 141,139,360 3,514,370,064 4.99% -6.5% 24.9 25.45 2.2% 88,309 n.a. n.a. 9.43 0.00 9.63
2007 COUNTRY GARDEN 416,810,666 3,422,015,568 4.74% -0.1% 8.21 8.29 1.0% 182,778 4.04 3.62 0.87 7.49 19.10
2018 AAC TECH 62,000,394 3,298,420,961 9.75% -3.8% 53.2 51.85 -2.5% 62,661 20.84 17.19 2.47 1.19 7.70
2899 ZIJIN MINING 309,929,917 3,291,455,719 5.31% -2.1% 10.62 10.84 2.1% 309,506 16.56 11.68 4.21 3.49 4.54
175 GEELY AUTO 138,910,379 3,285,230,463 2.35% -0.9% 23.65 24.35 3.0% 239,134 24.11 18.51 3.30 1.22 1.82
1801 INNOVENT BIO-B 39,834,452 3,278,375,400 4.52% 8.1% 82.3 87.8 6.7% 128,052 n.a. n.a. 11.68 0.00 6.81
1988 MINSHENG BANK 857,729,952 3,182,178,122 12.30% 0.3% 3.71 3.75 1.1% 211,800 3.80 3.50 0.26 8.14 26.68
27 GALAXY ENT 53,356,143 3,180,026,123 2.53% -2.7% 59.6 58.7 -1.5% 255,480 68.98 21.48 3.78 0.38 4.89
6185 CANSINOBIO-B 9,539,838 3,121,434,994 12.89% 2.6% 327.2 314.8 -3.8% 132,975 10.77 6.11 10.68 0.00 5.35
853 MICROPORT 48,521,937 3,100,551,774 6.31% -4.1% 63.9 68.6 7.4% 124,648 n.a. n.a. 14.17 0.14 7.76
1997 WHARF REIC 69,521,037 3,041,545,369 4.59% -2.7% 43.75 44.95 2.7% 136,478 17.41 16.06 0.67 3.65 23.43
5 HSBC HOLDINGS 68,266,465 2,973,004,551 0.33% 9.8% 43.55 43.75 0.5% 893,643 10.06 8.98 0.66 4.17 2.90
3 HK & CHINA GAS 239,560,498 2,932,220,496 2.19% -3.0% 12.24 12.36 1.0% 230,636 29.43 27.11 3.45 2.86 12.06
6060 ZA ONLINE 68,366,565 2,826,957,463 6.84% 0.2% 41.35 47.3 14.4% 69,522 76.62 47.68 3.69 0.00 12.18
3333 EVERGRANDE 296,096,354 2,804,032,472 14.74% 1.0% 9.47 9.8 3.5% 129,829 4.52 4.53 0.74 4.73 12.68
1658 PSBC 549,283,613 2,790,360,754 4.33% 2.3% 5.08 5.03 -1.0% 538,060 5.50 4.96 0.65 5.64 8.62
1398 ICBC 585,716,374 2,635,723,683 0.75% 5.2% 4.5 4.48 -0.4% 1,923,814 4.07 3.81 0.48 7.53 2.18
7
Hong Kong
Strategy Note│July 18, 2021
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8
Hong Kong
Strategy Note│July 18, 2021
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(iii) As of July 18, 2021, the analyst(s) who prepared this report, and the associate(s), has / have an interest in the securities (which may include but not limited to shares, warrants, call warrants and/or any other derivatives) in the following company or companies covered or recommended in this report:
(a) -
This report does not purport to contain all the information that a prospective investor may require. CGS-CIMB, China Galaxy International and their respective affiliates (including CGIFHL, CIMBG and their related corporations) do not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. None of CGS-CIMB, China Galaxy International and their respective affiliates and related persons (including CGIFHL, CIMBG and their related corporations) shall be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.
This report is general in nature and has been prepared for information purposes only. It is intended for circulation amongst CGS-CIMB’s and its affiliates’ (including CGIFHL’s, CIMBG’s and their respective related corporations’) clients generally and does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. The information and opinions in this report are not and should not be construed or considered as an offer, recommendation or solicitation to buy or sell the subject securities, related investments or other financial instruments or any derivative instrument, or any rights pertaining thereto.
Investors are advised to make their own independent evaluation of the information contained in this research report, consider their own individual investment objectives, financial situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects before participating in any transaction in respect of the securities of company(ies) covered in this research report. The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of investors.
Restrictions on Distributions
Australia: Despite anything in this report to the contrary, this research is issued by China Galaxy International and provided in Australia by CGS-CIMB Securities (Singapore) Pte. Ltd. and CGS-CIMB Securities (Hong Kong) Limited. This research is only available in Australia to persons who are “wholesale clients” (within the meaning of the Corporations Act 2001 (Cth) and is supplied solely for the use of such who lesale clients and shall not be distributed or passed on to any other person. You represent and warrant that if you are in Australia, you are a “wholesale client”. This research is of a general nature only and has been prepared without taking into account the objectives, financial situation or needs of the individual recipient. CGS-CIMB Securities (Singapore) Pte. Ltd. and CGS-CIMB Securities (Hong Kong) Limited do not hold, and are not required to hold an Australian financial services license. CGS-CIMB Securities (Singapore) Pte. Ltd. and CGS-CIMB Securities (Hong Kong) Limited rely on “passporting” exemptions for entities appropriately licensed by the Monetary Authority of Singapore (under ASIC Class Order 03/1102) and the Securities and Futures Commission in Hong Kong (under ASIC Class Order 03/1103).
Canada: This research report has not been prepared in accordance with the disclosure requirements of Dealer Member Rule 3400 – Research Restrictions and Disclosure Requirements of the Investment Industry Regulatory Organization of Canada. For any research report distributed by CIBC, further disclosures related to CIBC conflicts of interest can be found at https://researchcentral.cibcwm.com.
China: For the purpose of this report, the People’s Republic of China (“PRC”) does not include the Hong Kong Special Administrative Region, the Macau Special Administrative Region or Taiwan. The distributor of this report has not been approved or licensed by the China Securities Regulatory Commission or any other relevant regulatory authority or governmental agency in the PRC. This report contains only marketing information. The distribution of this report is not an offer to buy or sell to any person within or outside PRC or a solicitation to any person within or outside of PRC to buy or sell any instruments described herein. This report is being issued outside the PRC to a limited number of institutional investors and may not be provided to any person other than the original recipient and may not be reproduced or used for any other purpose.
France: Only qualified investors within the meaning of French law shall have access to this report. This report shall not be considered as an offer to subscribe to, or used in connection with, any offer for subscription or sale or marketing or direct or indirect distribution of financial instruments and it is not intended as a solicitation for the purchase of any financial instrument.
Germany: This report is only directed at persons who are professional investors as defined in sec 31a(2) of the German Securities Trading Act (WpHG). This publication constitutes research of a non-binding nature on the market situation and the investment instruments cited here at the time of the publication of the information.
The current prices/yields in this issue are based upon closing prices from Bloomberg as of the day preceding publication. Please note that neither the German Federal Financial Supervisory Agency (BaFin), nor any other supervisory authority exercises any control over the content of this report.
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Hong Kong: This report is issued by China Galaxy International and distributed in Hong Kong by CGS-CIMB Securities (Hong Kong) Limited (“CHK”) which is licensed in Hong Kong by the Securities and Futures Commission for Type 1 (dealing in securities) and Type 4 (advising on securities) activities. Any investors wishing to purchase or otherwise deal in the securities covered in this report should contact the Head of Sales at CGS-CIMB Securities (Hong Kong) Limited. The views and opinions in this research report are of China Galaxy International as of the date hereof and are subject to change. If the Financial Services and Markets Act of the United Kingdom or the rules of the Financial Conduct Authority apply to a recipient, our obligations owed to such recipient therein are unaffected. CHK has no obligation to update the opinion or the information in this research report.
CHK does not make a market on other securities mentioned in the report.
CIMB does not have an officer serving in any of the listed corporation mentioned in this report
CIMB does not receive any compensation or other benefits from any of the listed corporation mentioned, relating to the production of research reports.
India:
This report is issued by China Galaxy International and distributed in India by CGS-CIMB Securities (India) Private Limited (“CGS-CIMB India”). CGS-CIMB India is a subsidiary of CGS-CIMB Securities International Pte. Ltd. which in turn is a 50:50 joint venture company of CGIFHL and CIMBG. The details of the members of the group of companies of CGS-CIMB can be found at www.cgs-cimb.com, CGIFHL at www.chinastock.com.hk/en/ACG/ContactUs/index.aspx and CIMBG at www.cimb.com/en/who-we-are.html. CGS-CIMB India is registered with the National Stock Exchange of India Limited and BSE Limited as a trading and clearing member (Merchant Banking Number: INM000012037) under the Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Regulations, 1992. In accordance with the provisions of Regulation 4(g) of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, CGS-CIMB India is not required to seek registration with the Securities and Exchange Board of India (“SEBI”) as an Investment Adviser. CGS-CIMB India is registered with SEBI (SEBI Registration Number: INZ000157134) as a Research Analyst (INH000000669) pursuant to the SEBI (Research Analysts) Regulations, 2014 ("Regulations").
This report does not take into account the particular investment objectives, financial situations, or needs of the recipients. It is not intended for and does not deal with prohibitions on investment due to law/jurisdiction issues etc. which may exist for certain persons/entities. Recipients should rely on their own investigations and take their own professional advice before investment.
The report is not a “prospectus” as defined under Indian Law, including the Companies Act, 2013, and is not, and shall not be, approved by, or filed or registered with, any Indian regulator, including any Registrar of Companies in India, SEBI, any Indian stock exchange, or the Reserve Bank of India. No offer, or invitation to offer, or solicitation of subscription with respect to any such securities listed or proposed to be listed in India is being made, or intended to be made, to the public, or to any member or section of the public in India, through or pursuant to this report.
The research analysts, strategists or economists principally responsible for the preparation of this research report are segregated from the other activities of CGS-CIMB India and they have received compensation based upon various factors, including quality, accuracy and value of research, firm profitability or revenues, client feedback and competitive factors. Research analysts', strategists' or economists' compensation is not linked to investment banking or capital markets transactions performed or proposed to be performed by CGS-CIMB India or its affiliates.
CGS-CIMB India does not have actual / beneficial ownership of 1% or more securities of the subject company in this research report, at the end of the month immediately preceding the date of publication of this research report. However, since affiliates of CGS-CIMB India are engaged in the financial services business, they might have in their normal course of business financial interests or actual / beneficial ownership of one per cent or more in various companies including the subject company in this research report.
CGS-CIMB India or its associates, may: (a) from time to time, have long or short position in, and buy or sell the securities of the subject company in this research report; or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the subject company in this research report or act as an advisor or lender/borrower to such company or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.
CGS-CIMB India, its associates and the analyst engaged in preparation of this research report have not received any compensation for investment banking, merchant banking or brokerage services from the subject company mentioned in the research report in the past 12 months.
CGS-CIMB India, its associates and the analyst engaged in preparation of this research report have not managed or co-managed public offering of securities for the subject company mentioned in the research report in the past 12 months. The analyst from CGS-CIMB India engaged in preparation of this research report or his/her relative (a) do not have any financial interests in the subject company mentioned in this research report; (b) do not own 1% or more of the equity securities of the subject company mentioned in the research report as of the last day of the month preceding the publication of the research report; (c) do not have any material conflict of interest at the time of publication of the research report.
Indonesia: This report is issued by China Galaxy International and distributed by PT CGS-CIMB Sekuritas Indonesia (“CGS-CIMB Indonesia”). The views and opinions in this research report are not our own but of China Galaxy International as of the date hereof and are subject to change. CGS-CIMB Indonesia has no obligation to update the opinion or the information in this research report. This report is for private circulation only to clients of CGS-CIMB Indonesia. Neither this report nor any copy hereof may be distributed in Indonesia or to any Indonesian citizens wherever they are domiciled or to Indonesian residents except in compliance with applicable Indonesian capital market laws and regulations. This research report is not an offer of securities in Indonesia. The securities referred to in this research report have not been registered with the Financial Services
Authority (Otoritas Jasa Keuangan) pursuant to relevant capital market laws and regulations, and may not be offered or sold within the territory of the Republic of
Indonesia or to Indonesian citizens through a public offering or in circumstances which constitute an offer within the meaning of the Indonesian capital market law
and regulations.
Ireland: CGS-CIMB is not an investment firm authorised in the Republic of Ireland and no part of this document should be construed as CGS-CIMB acting as, or otherwise claiming or representing to be, an investment firm authorised in the Republic of Ireland.
Malaysia: This report is issued by China Galaxy International and distributed in Malaysia by CGS-CIMB Securities Sdn. Bhd. (“CGS-CIMB Malaysia”) solely for the benefit of and for the exclusive use of our clients. Recipients of this report are to contact CGS-CIMB Malaysia, at 29th Floor Menara CIMB No. 1 Jalan Stesen Sentral 2, Kuala Lumpur Sentral 50470 Kuala Lumpur, Malaysia, in respect of any matters arising from or in connection with this report. CGS-CIMB Malaysia has no obligation to update, revise or reaffirm the opinion or the information in this research report
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after the date of this report.
New Zealand: In New Zealand, this report is for distribution only to persons who are wholesale clients pursuant to section 5C of the Financial Advisers Act 2008.
Singapore: This report is issued by China Galaxy International and distributed by CGS-CIMB Research Pte Ltd (“CGS-CIMBR”). CGS-CIMBR is a financial adviser licensed under the Financial Advisers Act, Cap 110 (“FAA”) for advising on investment products, by issuing or promulgating research analyses or research reports, whether in electronic, print or other form. Accordingly, CGS-CIMBR is a subject to the applicable rules under the FAA unless it is able to avail itself to any prescribed exemptions.
Recipients of this report are to contact CGS-CIMB Research Pte Ltd, 50 Raffles Place, #16-02 Singapore Land Tower, Singapore in respect of any matters arising from, or in connection with this report. CGS-CIMBR has no obligation to update the opinion or the information in this research report. This publication is strictly confidential and is for private circulation only. If you have not been sent this report by CGS-CIMBR directly, you may not rely, use or disclose to anyone else this report or its contents.
If the recipient of this research report is not an accredited investor, expert investor or institutional investor, CGS-CIMBR accepts legal responsibility for the contents of the report without any disclaimer limiting or otherwise curtailing such legal responsibility. If the recipient is an accredited investor, expert investor or institutional investor, the recipient is deemed to acknowledge that CGS-CIMBR is exempt from certain requirements under the FAA and its attendant regulations, and as such, is exempt from complying with the following:
(a) Section 25 of the FAA (obligation to disclose product information);
(b) Section 27 (duty not to make recommendation with respect to any investment product without having a reasonable basis where you may be reasonably expected to rely on the recommendation) of the FAA;
(c) MAS Notice on Information to Clients and Product Information Disclosure [Notice No. FAA-N03];
(d) MAS Notice on Recommendation on Investment Products [Notice No. FAA-N16];
(e) Section 36 (obligation on disclosure of interest in securities), and
(f) any other laws, regulations, notices, directive, guidelines, circulars and practice notes which are relates to the above, to the extent permitted by applicable laws, as may be amended from time to time, and any other laws, regulations, notices, directive, guidelines, circulars, and practice notes as we may notify you from time to time. In addition, the recipient who is an accredited investor, expert investor or institut ional investor acknowledges that a CGS-CIMBR is exempt from Section 27 of the FAA, the recipient will also not be able to file a civil claim against CGS-CIMBR for any loss or damage arising from the recipient’s reliance on any recommendation made by CGS-CIMBR which would otherwise be a right that is available to the recipient under Section 27 of the FAA, the recipient will also not be able to file a civil claim against CGS-CIMBR for any loss or damage arising from the recipient’s reliance on any recommendation made by CGS-CIMBR which would otherwise be a right that is available to the recipient under Section 27 of the FAA.
CGS-CIMBR, its affiliates and related corporations, their directors, associates, connected parties and/or employees may own or have positions in securities of the company(ies) covered in this research report or any securities related thereto and may from time to time add to or dispose of, or may be materially interested in, any such securities. Further, CGS-CIMBR, its affiliates and its related corporations do and seek to do business with the company(ies) covered in this research report and may from time to time act as market maker or have assumed an underwriting commitment in securities of such company(ies), may sell them to or buy them from customers on a principal basis and may also perform or seek to perform significant investment banking, advisory, underwriting or placement services for or relating to such company(ies) as well as solicit such investment, advisory or other services from any entity mentioned in this report.
As of July 17, 2021, CGS-CIMBR does not have a proprietary position in the recommended specified products in this report.
CGS-CIMBR does not make a market on other securities mentioned in the report.
Chan Swee Liang Carolina, the Group Chief Executive Officer of the CGS-CIMB group of companies (in which CGS-CIMBR is a member) is an independent non-executive director of City Developments Limited as of 29 Dec 2020. CGS-CIMBR is of the view that this does not create any conflict of interest that may affect the ability of the analyst [or CGS-CIMBR] to offer independent and unbiased analyses and recommendations.
South Korea: This report is issued by China Galaxy International and distributed in South Korea by CGS-CIMB Securities (Hong Kong) Limited, Korea Branch (“CGS-CIMB Korea”) which is licensed as a cash equity broker, and regulated by the Financial Services Commission and Financial Supervisory Service of Korea. In South Korea, this report is for distribution only to professional investors under Article 9(5) of the Financial Investment Services and Capital Market Act of Korea (“FSCMA”).
Spain: This document is a research report and it is addressed to institutional investors only. The research report is of a general nature and not personalised and does not constitute investment advice so, as the case may be, the recipient must seek proper advice before adopting any investment decision. This document does not constitute a public offering of securities.
CGS-CIMB is not registered with the Spanish Comision Nacional del Mercado de Valores to provide investment services.
Sweden: This report contains only marketing information and has not been approved by the Swedish Financial Supervisory Authority. The distribution of this report is not an offer to sell to any person in Sweden or a solicitation to any person in Sweden to buy any instruments described herein and may not be forwarded to the public in Sweden.
Switzerland: This report has not been prepared in accordance with the recognized self-regulatory minimal standards for research reports of banks issued by the Swiss Bankers’ Association (Directives on the Independence of Financial Research).
Thailand: This report is issued by China Galaxy International and distributed by CGS-CIMB Securities (Thailand) Co. Ltd. (“CGS-CIMB Thailand”) based upon sources believed to be reliable (but their accuracy, completeness or correctness is not guaranteed). The statements or expressions of opinion herein were arrived at after due and careful consideration for use as information for investment. Such opinions are subject to change without notice and CGS-CIMB Thailand has no obligation to update the opinion or the information in this research report.
CGS-CIMB Thailand may act or acts as Market Maker, and issuer and offerer of Derivative Warrants and Structured Note which may have the following securities as its underlying securities. Investors should carefully read and study the details of the derivative warrants in the prospectus before making investment decisions.
AAV, ADVANC, AMATA, ANAN, AOT, AP, BA, BANPU, BBL, BCH, BCP, BCPG, BDMS, BEAUTY, BEC, BEM, BJC, BH, BIG, BLA, BLAND, BPP,
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BTS, CBG, CENTEL, CHG, CK, CKP, COM7, CPALL, CPF, CPN, DELTA, DTAC, EA, EGCO, EPG, GFPT, GLOBAL, GLOW, GPSC, GUNKUL, HMPRO, INTUCH, IRPC, ITD, IVL, KBANK, KCE, KKP, KTB, KTC, LH, LHBANK, LPN, MAJOR, MALEE, MEGA, MINT, MONO, MTLS, PLANB, PSH, PTL, PTG, PTT, PTTEP, PTTGC, QH, RATCH, ROBINS, S, SAWAD, SCB, SCC, SCCC, SIRI, SPALI, SPRC, STEC, STPI, SUPER, TASCO, TCAP, THAI, THANI, THCOM, TISCO, TKN, TMB, TOP, TPIPL, TRUE, TTA, TU, TVO, UNIQ, VGI, WHA, WORK.
Corporate Governance Report:
The disclosure of the survey result of the Thai Institute of Directors Association (“IOD”) regarding corporate governance is made pursuant to the policy of the Office of the Securities and Exchange Commission. The survey of the IOD is based on the information of a company listed on the Stock Exchange of Thailand and the Market for Alternative Investment disclosed to the public and able to be accessed by a general public investor. The result, therefore, is from the perspective of a third party. It is not an evaluation of operation and is not based on inside information.
The survey result is as of the date appearing in the Corporate Governance Report of Thai Listed Companies. As a result, the survey result may be changed after that date. CGS-CIMB Thailand does not confirm nor certify the accuracy of such survey result.
Score Range: 90 - 100 80 – 89 70 - 79 Below 70 or No Survey Result
Description: Excellent Very Good Good N/A
United Arab Emirates: The distributor of this report has not been approved or licensed by the UAE Central Bank or any other relevant licensing authorities or governmental agencies in the United Arab Emirates. This report is strictly private and confidential and has not been reviewed by, deposited or registered with UAE Central Bank or any other licensing authority or governmental agencies in the United Arab Emirates. This report is being issued outside the United Arab Emirates to a limited number of institutional investors and must not be provided to any person other than the original recipient and may not be reproduced or used for any other purpose. Further, the information contained in this report is not intended to lead to the sale of investments under any subscription agreement or the conclusion of any other contract of whatsoever nature within the territory of the United Arab Emirates.
United Kingdom and European Economic Area (EEA): In the United Kingdom and European Economic Area, this material is issued by China Galaxy International and is being distributed by CGS-CIMB Securities (UK) Limited (“CGS-CIMB UK”). CGS-CIMB UK is authorized and regulated by the Financial Conduct Authority and its registered office is at 53 New Broad Street, London EC2M 1JJ. The material distributed by CGS-CIMB UK has been prepared in accordance with CGS-CIMB’s policies for managing conflicts of interest arising as a result of publication and distribution of this material. This material is for distribution only to, and is solely directed at, selected persons on the basis that those persons: (a) are eligible counterparties and professional clients of CGS-CIMB UK; (b) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the “Order”), (c) fall within Article 49(2)(a) to (d) (“high net worth companies, unincorporated associations etc”) of the Order; (d) are outside the United Kingdom subject to relevant regulation in each jurisdiction, material(all such persons together being referred to as “relevant persons”). This material is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this material relates is available only to relevant persons and will be engaged in only with relevant persons.
This material is categorised as non-independent for the purposes of CGS-CIMB UK and therefore does not provide an impartial or objective assessment of the subject matter and does not constitute independent research. Consequently, this material has not been prepared in accordance with legal requirements designed to promote the independence of research and will not be subject to any prohibition on dealing ahead of the dissemination of research. Therefore, this material is considered a marketing communication.
United States: This research report is issued by China Galaxy International and distributed in the United States of America by CGS-CIMB Securities (USA) Inc, a U.S. registered broker-dealer and an affiliate of CGS-CIMB Securities Sdn. Bhd., CGS-CIMB Research Pte Ltd, PT CGS-CIMB Sekuritas Indonesia, CGS-CIMB Securities (Thailand) Co. Ltd, CGS-CIMB Securities (Hong Kong) Limited and CGS-CIMB Securities (India) Private Limited, and is distributed solely to persons who qualify as “U.S. Institutional Investors” as defined in Rule 15a-6 under the Securities and Exchange Act of 1934. This communication is only for Institutional Investors whose ordinary business activities involve investing in shares, bonds, and associated securities and/or derivative securities and who have professional experience in such investments. Any person who is not a U.S. Institutional Investor or Major Institutional Investor must not rely on this communication. The delivery of this research report to any person in the United States of America is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein. CGS-CIMB Securities (USA) Inc, is a FINRA/SIPC member and takes responsibility for the content of this report. For further information or to place an order in any of the above-mentioned securities please contact a registered representative of CGS-CIMB Securities (USA) Inc.
CGS-CIMB Securities (USA) Inc. does not make a market on other securities mentioned in the report.
CGS-CIMB Securities (USA) Inc. has not managed or co-managed a public offering of any of the securities mentioned in the past 12 months.
CGS-CIMB Securities (USA) Inc. has not received compensation for investment banking services from any of the company mentioned in the past 12 months.
CGS-CIMB Securities (USA) Inc. neither expects to receive nor intends to seek compensation for investment banking services from any of the company mentioned within the next 3 months.
United States Third-Party Disclaimer: If this report is distributed in the United States of America by Raymond James & Associates, Inc (“RJA”), this report is third-party research prepared for and distributed in the United States of America by RJA pursuant to an arrangement between RJA and CGS-CIMB Securities International Pte. Ltd. (“CGS-CIMB”). CGS-CIMB is not an affiliate of RJA. This report is distributed solely to persons who qualify as “U.S. Institutional Investors” or as “Major U.S. Institutional Investors” as defined in Rule 15a-6 under the Securities and Exchange Act of 1934, as amended. This communication is only for U.S. Institutional Investors or Major U.S. Institutional Investor whose ordinary business activities involve investing in shares, bonds, and associated securities and/or derivative securities and who have professional experience in such investments. Any person who is not a U.S. Institutional Investor or Major U.S. Institutional Investor must not rely on this communication. The delivery of this report to any person in the U.S. is not a recommendation to effect any transactions in the securities discussed herein, or an endorsement of any opinion expressed herein. If you are receiving this report in the U.S from RJA, a FINRA/SIPC member, it takes responsibility for the content of this report. For further information or to place an order in any of the above-mentioned securities please contact a registered representative of CGS-CIMB Securities (USA) Inc. or RJA. https://raymondjames.com/InternationalEquityDisclosures
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Other jurisdictions: In any other jurisdictions, except if otherwise restricted by laws or regulations, this report is only for distribution to professional, institutional or sophisticated investors as defined in the laws and regulations of such jurisdictions.
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RECOMMENDATION FRAMEWORK
Stock Ratings Definition:
Add The stock’s total return is expected to reach 15% or higher over the next 12 months.
Hold The stock’s total return is expected to be between negative 10% and positive 15% over the next 12 months.
Reduce The stock’s total return is expected to fall below negative 10% over the next 12 months.
The total expected return of a stock is defined as the sum of the:(i) percentage difference between the target price and the current price and (ii) the forward net dividend yields of the stock. Stock price targets have an investment horizon of 12 months.
Sector Ratings Definition:
Overweight An Overweight rating means stocks in the sector have, on a market cap-weighted basis, a positive absolute recommendation.
Neutral A Neutral rating means stocks in the sector have, on a market cap-weighted basis, a neutral absolute recommendation.
Underweight An Underweight rating means stocks in the sector have, on a market cap-weighted basis, a negative absolute recommendation.
Country Ratings Definition:
Overweight An Overweight rating means investors should be positioned with an above-market weight in this country relative to benchmark.
Neutral A Neutral rating means investors should be positioned with a neutral weight in this country relative to benchmark.
Underweight An Underweight rating means investors should be positioned with a below-market weight in this country relative to benchmark.
Analyst Certification
The analyst who is primarily responsible for the content of this report, in whole or in part, certifies that with respect to the securities or issuer covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject, securities or issuer; and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by the analyst in this report.
Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the securities covered in this research report within 30 calendar days prior to the date of issue of this report; (2) will deal in or trade in the securities covered in this research report three business days after the date of issue of this report; (3) serve as an officer of any of the Hong Kong-listed companies covered in this report; and (4) have any financial interests in the Hong Kong-listed companies covered in this report.
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