GS 高盛-中国每日报告 07.24

China-Daily-Insights 07.24 12页

Today’s focus
Angang Steel (H) (0347.HK) Buy: Improving risk/reward, add to Conviction Buy List
Tianjin Capital (H) (1065.HK) Sell: Downgrade on unsustainable valuation and market expectations
China: Utilities: Water: Positive on long-term water theme; rolling over to 2008 target prices
China: Utilities: Power: More steam to power? Reiterate Buy on CRP; introduce 2008 targets
China: Technology: Internet: Websites' Olympics cooperation appears strategic and astute
AAC Acoustic (2018.HK): Nokia order gain reinforces our positive stance; reiterate Buy
Xinyi Glass (0868.HK): Earnings and TP further revised up; Reiterate Buy
Headline news
China mulls deposit insurance system (Xinhua)
State has firm plan to improve businesses (Xinhua)
Tight land pushes up home prices (Shanghai Daily)
QDII program gets off to a slow start (Shanghai Daily)
China could benefit from foreign banks-FDIC chmn (Yahoo)
Angang Steel (H) (0347.HK) Buy: Improving risk/reward, add to Conviction Buy List, Song Shen
• Source of opportunity: We upgrade Angang (0347.HK, HK$18.16, Conviction buy list) to Buy from Neutral and put it on the Conviction Buy List with a 12-month P/E based target price of HK$27 for three reasons: (1). Increasing downside protection. New data points suggest marginal players already have a return below the 3Q06 macro tightening level, largely pricing in potential headwinds from export tax or macro tightening. (2). Upside leverage could be enhanced by potential accelera