BOCOM International Research

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BOCOM International Research

An Award Winning Research Team

A team of about 40 strategy and industry analysts and Major Publications professional staff in Hong Kong, Beijing and Shanghai, Outlook 2H19: What with most having MASTER’S DEGREES and professional Price for the Trade War qualifications such as CFA and CPA and many possessing (EN; 中文) 10 YEARS OF EXPERIENCE in finance and/or relevant industries.

We cover around 140 STOCKS across new-economy and traditional sectors, including banks, insurance, non-bank financials, property, internet, technology, healthcare, education, auto, utilities & environmental, electric power, renewables, transportation & logistics, and infrastructure.

The team features EIGHT TOP-10 ANALYST TEAMS in Outlook 2019: Turning a 2018 Asiamoney poll, including No.2 for Economic Corner (EN; 中文) Research (HK), No.3 for Economic Research (A&B shares), No.5 for Utilities (HK), No.6 for Internet (HK), No.6 for Banks (A&B shares), No.6 for Diversified Financials (A&B shares), etc.

We won MULTIPLE TOP-3 AWARDS in 2017 Asiamoney poll, including: No.2 rankings for Strategy (A&B shares), Economic Research (A&B shares), Strategy (HK), and Casinos & Gaming (A&B shares); No.3 rankings for

Economic Research (HK), Strategy (H shares, red chips and Outlook 2H18: Rough P chips), Economic Research (H shares, red chips and P Sailing (EN; 中文) chips), and Transportation (HK), among other awards.

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BOCOM International Research

Macro Strategy

Recent key reports Hao HONG

Outlook 2H19: What Price Head of Research for the Trade War (link: Chief Strategist EN; 中文) CFA Won No.2 Best Awarded Best Hong Team for Economic China Market Strategy - Kong Economist Research (HK) and and Strategist in No.3 Best Team for War and Peace (link: EN; Asiamoney Brokers Economic Research 中文) Poll 2017, winning a (A&B shares) in total of 16 awards Asiamoney Brokers China Market Strategy - Poll 2018 Cyclical Inflection Point is Confirmed (link: EN; 中文)

China Market Strategy - Former Chief Global Equity Strategist and Market Inflection Point is Brand spokesman for Executive Director at the CFA Institute Confirmed (link: EN; 中文) CICC (Beijing, Hong since 2016; CFA Kong), and Global Charterholder since “Most Accurate 2001 China Market Strategy - Strategist at Morgan Strategist in China” Who’s Buying? Who’s Stanley by Bloomberg; Next? (link: EN; 中文) predicted the unprecedented liquidity crisis and China Market Strategy - A corresponding Margin Bull. What Next? plunge and recovery (link: EN; 中文) in China’s stock market in 2013

Karen TAN Hanna CAI Fei PENG Analyst Analyst Analyst Macro Strategy Macro Strategy 4 years of Recent research Macro Strategy Recent research macro- Recent research topics: US bond topics: RMB economic topics: A-share yield inversion, exchange rate, earnings trends, research QFII fund Science & Tech volatility & MSCI allocation, and Innovation experience inclusion since 2015 pork price Board, CPI/PPI

Core research Part of the publications: Core research Core research award-winning China Macro publication: publication: Economics Review; China Macro China Macro team Liquidity Review Review Report Master in Master in Master in accounting and technological mathematics finance from systems from State University from University London School of of Cambridge of New York at Economics Stony Brook

Recent key reports China Macro Review - China Macro Review - A Implications of US bond yield shares added to FTSE Russell curve inversion (link: 中文) (link: 中文) China Macro Review - China Macro Review - QFIIs Manufacturing sector under increase allocation to ChiNext near-term pressure (link: 中文) (link: 中文)

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BOCOM International Research

Healthcare Sector

Li ZHAO PhD Deputy Head of Research; Former teaching Healthcare PhD in Chinese and professional Research Medicine from Hong advisors to Schools Kong Baptist of Chinese Medicine University; master of HKU and CUHK, in integrative respectively; Chinese medicine from medicine practitioner Chinese Academy of at Chinese Academy Traditional Chinese of TCM Medicine

Coverage space: Organized and took Traditional Chinese part in various medicine; pharma roadshows & visits, manufacturing including China TCM and Key stocks: Livzon Pharma Baiyunshan, Strong in China TCM, Livzon healthcare policy analysis, and research in medical services and R&D Kelvin CHEN PhD Head of Healthcare Research Organized various PhD in chemical/ investor day/NDR biomolecular events with 3SBio engineering from (1530 HK), WuXi HKUST; previously Biologics (2269 HK) visiting scholar to Recent key reports and AK Medical Spanish National (1789 HK) in 2019 Research Council Healthcare Sector - NRDL update preview: therapeutic areas in focus, “price for volume” intact 4 years of Coverage space: equity research & Pharma (link: EN; 中文) manufacturing & investment banking distributors experience, Healthcare Sector Insights - including stints at Key stocks: CSPC, Consolidation empowers Huarong Financial & Sino Biopharm, WuXi Bio, Macquarie prior to distributor giants; Top Buy SH Currently working Sinopharm, BOCOM Int'l Pharma (link: EN; 中文) on a number of SH Pharm fund-raising Guangzhou Baiyunshan Pharma projects for (874 HK) - Initiate with Buy on healthcare companies multiple drivers & strong distribution layout (link: EN; 中文) Sino Biopharm (1177 HK) – China TCM – Sinopharm stake 1Q19 in line; oncology increase shows LT confidence franchise shines amid despite ST financial pressure pricing pressure (link: EN; (link: 中文) 中文)

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BOCOM International Research

Automobile Sector

Angus CHAN

Head of Recent key reports Coverage space: Automobile Auto Research 8 years of equity Automobile Sector Monthly – manufacturing, research PV drop expanded in May dealers, parts & experience in components (link: EN; 中文) auto, defense, Key stocks: Geely, industrials and

Geely Automobile (175 HK) – Brilliance, GAC, building materials Great Wall, since 2010 Healthy inventory sets stage Zhongsheng for 2H19E sales rebound; reaffirm top Buy (link: EN; 中 Formerly M&A 文) analyst at HK-listed Hopewell Highway Master in Automobile Sector – Infrastructure finance from Downgrade sector as undertaking China Wollongong headwinds persist; top Buy infrastructure M&A University of projects, and equity Organized investor Geely (link: EN; 中文) Australia analyst at Guotai tours and NDRs Junan Int'l with Geely, GAC, BYD, Yongda and Brilliance; took part in IPOs of Beijing Automotive, China Wood Education Sector

Scarlett SHI Analyst Education Research Recent key reports Completed a Coverage space: China Education Group (839 number of IPO Education HK) - A private vocational projects at BOCOM Key stocks: education leader on fast Int'l, including Tai China Education track; initiate with Buy (link: Hing Group and Group, New Higher EN; 中文) Kepei Education Education China Education Group (839 HK) – ST expenses dragged earnings but LT M&A funds >10 years of ample; maintain Buy (link: experience in the 中文) securities industry; MBA from previously covered education and Ritsumeikan New Higher Education healthcare sectors at University, Japan Group (2001 HK) – M&A to Zhongtai Int'l and Years of slow as liquidity concerns Essence Int'l institutional sales manifest (link: 中文) & marketing experience respectively at Mizuho Asia and BOCI Securities

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BOCOM International Research

Utilities & Environmental Sector

Wallace CHENG Head of Utilities & Environmental Headed the No.5 Research 15 years of solid Best Team for experience in sell- Utilities (HK) in side research, with 2018 Asiamoney former stints at GF poll Securities and CITIC Securities Spencer LUO Analyst Utilities & Coverage space: Track record in Environmental Gas utilities, organizing NDRs, Research environmental, Integral member electric power with Kunlun of the award- Energy, China Gas, winning utilities Key stocks: Everbright Kunlun, CR Gas, team in 2018 ENN Energy, China Greentech, Asiamoney poll Gas, BJ Enterprises Recently Canvest, Yunnan Water completed IPO Water, etc projects:

Sichuan Energy Bachelor and Investment, master in Xinglu Water Coverage space: accounting and Electric power finance from Key stocks: Heriot-Watt Huaneng Power, University and China Power Int'l, University of Huadian Power, Organized NDR Southampton, Recent key reports CR Power with China respectively Power Int'l in 2019; Kunlun Energy (135 HK) - Re- participated in positioning trumps disposal Sichuan Energy Investment IPO uncertainty; initiate with Buy in 2018 (link: EN; 中文)

Power Sector Insights - Dividend & dark spread as key lines of defense; favor HDP/CPI (link: EN; 中文) ENN Energy (2688 HK) – Upgrade Gas Utilities Sector - Moderate to Buy on clearer IE roadmap gas sales growth in FY19E after and priced-in policy concerns FY18 beat (link: EN) (link: EN; 中文) Power Sector Insights - Stay China Gas Holdings (384 HK) – defensive after powerful rally; Downgrade to Neutral on dim initiate with Market Perform earnings visibility beyond FY21E (link: EN; 中文) (link: EN; 中文)

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BOCOM International Research

Internet Sector

Connie GU Head of Internet Research 9 years of experience CPA Institutional in internet research; Investor poll she led the team to awards: Top 20 All- success in 2018 Asia Internet Asiamoney poll, Research Team in winning No.6 Best 2016; Top 25 Team for Software & consistently during Internet Services (HK) 2013-16

Coverage space: Organized NDRs with E-commerce, games, TAL, iQIYI and Momo, video, AI, VR, live and participated in broadcasts investor education for Meituan Dianping IPO Key stocks: in 2019 Alibaba, Tencent, Hosted wide-ranging Baidu, Meituan, TAL investor meetings and events with management of Mengqi SUN Alibaba, Baidu, Ant Zhe ZHOU (Brandy) Financial, Baidu (Gigi) Delivery, Cheetah, Analyst Meituan, Mobike, etc Analyst More than 4 Internet Research Internet Research Coverage space: Key member of years of equity Key member of Online video, award-winning online music, live research award-winning internet team in broadcasts experience internet team in 2018 Asiamoney covering 2018 Asiamoney Key stocks: poll No.6 Best Team for internet stocks poll iQIYI, Tencent Software & Music, YY, Momo Internet Services (HK) in 2018 Coverage space: Part of Top 20 Asiamoney poll Experience at All-Asia Internet advisory firm BDA Online games 5 years of equity China conducting Research Team investment analysis Key stocks: in 2016 research on live streaming, NetEase, Kingsoft, Institutional experience online video, online Sina, 58.com Master of finance music & literature, and investment Investor poll Master of and e-commerce from University of finance from Bristol; strong in Hong Kong logical and Polytechnic mathematical University analysis

Recent key reports

Tencent Holdings (700 HK) - Meituan Dianping (3690 HK) - Internet Sector - Online video Visible near-term growth for Core business & food+platform monthly monitor (2M19) (link: games/payment; industrial to drive 2020E turnaround; 中文) internet a LT positive (link: EN; initiate with Buy (link: EN; 中文) 中文) Internet Sector Insights - New Internet Sector Insights - 2018 retail: online still the core; Tencent Music Entertainment review and 2019 outlook (link: fresh food/supermarket take (TME US) - Potential market EN; 中文) the lead (link: EN; 中文) growth to foster core edge in music; initiate with Neutral (link: EN; 中文)

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BOCOM International Research

Renewable Energy Sector

Louis SUN Head of Renewables Research >13 years of Ranked among Top experience in the securities industry, 30 Best HK Analysts with previous stints in renewables at Shenyin Wanguo industry in 2015 and CITIC Securities Asiamoney poll Bob WEN

Coverage space: Analyst Alternative energy, Renewables wind/PV power Named Top 5 Research Coverage space: Key stocks: Analyst by New Photovoltaic Longyuan Power, Fortune in 2005 materials GCL-Poly, Huaneng and 2006 Key stocks: Renewables, Xinyi Solar, Flat Huadian Fuxin Master of Glass Group Economics, PBC School of Finance, Tsinghua University Master of Closely tracking statistics from upstream Shanghai material demand- supply dynamics, University of Bob currently has Finance and a rosy outlook on Recent key reports Economics PV glass sector Renewable Energy Sector – Lighter 2 years of PV glass weight to slow demand equity research experience growth, but lift market concentration (link: 中文)

Renewable Energy Sector Insights - PV glass outlook rosy, leaders in driver’s seat; top Buy Flat Glass (link: EN; 中文)

Xinyi Solar (968 HK) – Xinyi Energy spin-off on schedule, reiterate Buy (link: 中文)

Renewable Energy Sector – Wind power operations sound, investment set to gain pace in 2019E (link: 中文)

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BOCOM International Research

Financial Sector

Recent key reports Li WAN PICC Property & Casualty (2328 (Amy) HK) - Auto insurance leader with Head of improved earnings outlook; Awarded No.6 Financial Research Over a decade of initiate with Buy (link: EN; 中文) Best Team for CFA, FRM Diversified equity research Financials (A&B experience, Insurance Sector - Improved shares) and No.10 covering insurance, expectations to fuel valuation Best Team for non-bank 中文 Insurance (HK) in financials, and recovery (link: ) 2018 Asiamoney previously banks poll Asset Management Sector Insights – Operations upturning with earnings pick-up; top Buy Took part in >10 HK IPO projects for Coverage space: Cinda (link: EN; 中文) financial companies, Insurance; AMC incl. CITIC Sec, Key stocks: Haitong Sec, Everbright Bank, Ping An, CPIC, Bank of Chongqing, China Life, Cinda Banking Sector Harbin Bank, Solid track record in Asset Mgmt Shandong Int'l Trust organizing investor meetings and roadshows, including those with HKEx, Pax Global, New China Life, Cinda, CQ Rural Commercial Bank Jaclyn WANG Head of Awarded No.6 Banking Research >10 years of Best Team for extensive Banks (A&B shares) experience in Recent key reports in 2018 Asiamoney equity research poll; member of No.1/No.3 teams and commercial Banking Sector – China Credit for diversified banking; Master of financials Science from Monitor May 2019 (link: EN; 中 in 2012/13 polls, University of 文) respectively Oxford

Banking Sector - Near-term pressure eases; raise TPs, Well-experienced in Coverage space: upgrade CCB (link: EN; 中文) organizing & participating in Commercial banks investor events, Key stocks: Bank of China (3988 HK) – 1Q19 including NDRs with ICBC, CCB, BOC, missed slightly on provisions, but BOCOM Int'l, Haitong ABC, CM Bank, Int'l, and Guotai Previous research loan reserves remain moderate Junan Int'l CITIC Bank & banking (link: EN) experience at Jefferies HK, Yuanta ICBC (1398 HK) – 1Q19 in line, Securities, Fitch good PPOP offset by loan Ratings, and HSBC (China) provision (link: EN)

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BOCOM International Research

Property Sector

Philip TSE

Head of Property Research No.1 Top Stock Industry insights Recent key reports Picker in Real Estate CFA, FRM, MRICS backed by 14 years Management & of experience in Hong Kong Property Sector - CCL Dev't (Asia), No.2 real estate + Top Stock Picker in set to surpass 210 by 2020E on Real Estate finance, counting (HK/China) in 2019 Savills, CBRE, DTZ, reversed expectations (link: EN; Refinitiv analyst ICBC Int'l and 中文) awards (formerly Maybank in his Thomson Reuters) resumé China Property Sector Insights - Earnings quality & valuation as Coverage space: key post re-rating; top Buy No.5 Overall Top Property dev't Shimao (link: EN; 中文) Stock Picker (Asia) (China/HK); and No.3 Overall investment China Property Sector – Caught Top Stock Picker property; REIT (HK/China) in in downward spiral; re-rating not Refinitiv analyst Completed a Key stocks: until 2H19E (link: EN; 中文) awards number of IPO SHKP, Link REIT, CR projects, including Land, Shimao those for Zhejiang New Century Hotel Management and S.A.I Leisure Group in 2019 Technology Sector

Christopher YIM Head of Technology Recent key reports Top Stock Picker Research Engaged in tech in IT & Consumer sector research FIT Hon Teng Ltd (6088 HK) - ST Durables (HK & since 2010 covering headwind behind, multiple China) and No.2 mainland China, drivers ahead; initiate with Buy Overall Top Stock Taiwan & Korea hardware sectors; 中文 Picker in Thomson (link: EN; ) Reuters Analyst with stint at Awards 2017 Mizuho Securities Technology Sector Insights - Choppy semis recovery in 2H19E; downgrade Hua Hong (link: EN; Coverage space: Previously a 中文) Hardware & seasoned equipment semiconductor Key stocks: engineer at Sunny Optical (2382 HK) – Near- Spansion Inc; term outlook mixed; longer-term Sunny Optical, Master in Chemical Lenovo, AAC Tech, potential intact (link: EN; 中文) Organized Engineering, ASM Pacific, SMIC, NDRs with tech University of Hua Hong names incl. Lenovo, Arizona SMIC, O-Net, FIT Hon Teng; group meetings with Sunny, Lenovo, etc; investor trips to Truly Int'l, O- Film, AAC, Hans Laser, SZ Everwin

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BOCOM International Research

Transportation & Industrials Sector

Fay ZHOU

Analyst Transportation and Industrials Research Coverage space: Named No.3 Best Infrastructure, Analyst for logistics Transportation Key stocks: (HK) in 2017 China Railway Group, Asiamoney poll CRCC, China Railway Signal, Sinotrans Maggie WANG Took part in IPO Analyst research & investor Transportation and Industrials Research Coverage space: 4 years of equity education, including Shipping research experience CSSC (HK) Shipping in 2019 and Hebei Key stocks: SITC Int'l, COSCO Yichen in 2017 Shipping, Orient Master of financial Overseas Int'l services from City University of Hong Kong Transportation team was named Participated in IPO No.3 Best Team projects including for Transportation CSSC (HK) Shipping in 2019 (HK) in 2017 Part of award- Asiamoney poll winning team in 2017; master of Luya YOU applied economics Analyst from HK Baptist Transportation and University Industrials Research Coverage space: >3 years of equity Airlines, aircraft research experience leasing, aviation services and trained in Recent key reports economics & Key stocks: Air China, Cathay China Railway Signal & Comm political science at Pacific, BOC Aviation, (3969 HK) - Shifting into higher Duke University BJ Capital Int'l Airport gears to tap LT demand; initiate with Buy (link: EN; 中文)

Aviation Services Sector Insights Making further - Leasing’s ascent far from Member of award- headway in running out of altitude; Buy coverage toward winning team in BOCA/CALC (link: EN; 中文) 2017 online travel agents (OTA) ahead Helped organize Aviation Services Sector - B737 Consumer corporate MAX: short-term snub, long- day, and term staple (link: EN; 中文) participated in IPO projects Infrastructure Sector - 5 years into BRI and what lies ahead (link: EN)

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