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Eduquer l'esprit d'entreprendre Bilan et questionnements de ...

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Morning Express09 November 2012Banking SectorRepricing cycle and interbank ass<strong>et</strong>s growth are the key factors for thebanks’ mixed NIM performancesYang Qingliyangqingli@bocomgroup.comEarnings of H-share banks in the first 3 quarters of the year beat our forecasts by 1.9%due to b<strong>et</strong>ter-than-expected NIM. The growth of interbank ass<strong>et</strong>s slowed down asexpected. NPL ratio of small- and mid-sized banks climbed slightly in 3Q12 but the growthof special-mentioned loans mo<strong>de</strong>rated. Given a relatively weak economic rebound, weexpect the NPL ratio of small- and mid-sized banks to rise slightly in 4Q12. While the largebanks’ b<strong>et</strong>ter performance in NIM was driven by several factors, the duration of repricingcycle and the growth of interbank ass<strong>et</strong>s were key, in our view. We believe the NIMwould <strong>de</strong>cline in 4Q12 and 1Q13 and the difference b<strong>et</strong>ween large banks and small- andmid-sized banks would narrow. Consi<strong>de</strong>ring the weak economic rebound and the recentrebound in the banks’ share prices (up to 20%), we cut the sector rating to “Mark<strong>et</strong>Perform”. Maintain “BUY” rating for MSB but we downgra<strong>de</strong> CQRCB, CITIC Bank to“LT-BUY” and CCB to “NEUTRAL”.Lenovo Group (992.HK)A s<strong>et</strong> of satisfactory Sept quarter resultsMiles Xiemiles.xie@bocomgroup.comLast Closing: HK$6.58 Upsi<strong>de</strong>: +20.1% Targ<strong>et</strong> Price: HK$7.90→UP MPOPWe maintain our BUY rating on Lenovo as it continued to outperform the sector averageand its major comp<strong>et</strong>itors in the global PC mark<strong>et</strong>. In the Sept quarter, Lenovo <strong>de</strong>liveredPC shipments of 13.8mn units, which represented an 8% quarter-on-quarter growth andsignificantly outpaced the sector growth by 5.3 ppts. It allowed Lenovo to expand itsmark<strong>et</strong> share by 0.7 ppt to 15.7%, merely 0.2 ppt behind HP. Tog<strong>et</strong>her with the greatachievement in the smartphone segment, Lenovo <strong>de</strong>livered b<strong>et</strong>ter-than-expected Septquarter results with 8% quarterly growth in revenue and 15% quarterly growth in n<strong>et</strong>profit. The Sept quarter results confirmed our positive view on Lenovo’s comp<strong>et</strong>itivenessin the global PC mark<strong>et</strong> and the promising outlook of the MIDH segment. We maintainour Buy rating with an unchanged targ<strong>et</strong> price of HK$7.90.SELLNeutralStockLTBUYBUYHang Seng In<strong>de</strong>x (1 year)22,00020,00018,00016,00014,0002/11/112/12/112/1/122/2/122/3/122/4/122/5/122/6/122/7/122/8/122/9/122/10/122/11/12Source: Company data, BloombergHS China Enterprise In<strong>de</strong>x (1 year)12,00011,00010,0009,0008,0007,0002/11/112/12/112/1/122/2/122/3/122/4/122/5/122/6/122/7/122/8/122/9/122/10/122/11/12Source: Company data, BloombergShanghai A-shares (1 year)2,8002,6002,4002,2002,0002/11/112/12/112/1/122/2/122/3/122/4/122/5/122/6/122/7/122/8/122/9/122/10/122/11/12Source: Company data, BloombergShenzhen A-shares (1 year)1,2001,1001,0009008002/11/112/12/112/1/122/2/122/3/122/4/122/5/122/6/122/7/122/8/122/9/122/10/122/11/12Source: Company data, BloombergResult Announcement This WeekDate Company Co<strong>de</strong>09/11/2012 C.P. POKPHAND 43 3Q09/11/2012 COMTEC SOLAR 712 3Q09/11/2012 HK PARKVIEW 207 Interim09/11/2012 RUSAL 486 3Q09/11/2012 S HARBOUR PPT 1663 InterimSource: BOCOM Int’lDownload our reports from Bloomberg: BOCM〈enter〉

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