DeutscheBankMarketsResearchRatingBuyAsiaChinaBanking/FinanceOtherFinancialServicesCompanyChinaCindaAlertDate29August2017Results1H17results:initialreadReutersBloombergExchangeTicker1359.HK1359HKHSI1359________________________________________________________________________________________________________________DeutscheBankAG/HongKongTheviewsexpressedaboveaccuratelyreflectthepersonalviewsoftheauthorsaboutthesubjectcompaniesandits(their)securities.Theauthorshavenotandwillnotreceiveanycompensationforprovidingaspecificrecommendationorview.DeutscheBankdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.PricesarecurrentasoftheendoftheprevioustradingsessionunlessotherwiseindicatedandaresourcedfromlocalexchangesviaReuters,Bloombergandothervendors.FOROTHERIMPORTANTDISCLOSURESPLEASEVISIThttp://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=1359.HKMCI(P)083/04/2017.Priceat29Aug2017(HKD)3.22Pricetarget-12mth(HKD)3.7252-weekrange(HKD)3.47-2.62HANGSENGINDEX27,863JackyZuoResearchAnalyst(+852)22036255jacky.zuo@db.comHansFan,CFAResearchAnalyst(+852)22036353hans.fan@db.comEdwardDuResearchAssociate(+852)22036185edward.du@db.comStockdataMarketcap(HKDm)116,747Marketcap(USDm)14,923Sharesoutstanding(m)36,256.7MajorshareholdersMOF(TheMinistryofFinance)(67.84%)Freefloat(%)19Avgdailyvaluetraded(USDm)25.9Source:DeutscheBankAmissonRDAbusinessandinvestment;strongTDAincomeChinaCindareported1H17resultswithnetincomeofRmb8.9bn,up11%yoybut25%behindourforecast.Wecalculaterecurrentprofit(excl.Rmb3.4bndisposalgainsonP&Csub)wasRmb6.5bn,down19%yoy.TDAincomewasstrong(up90%yoy)butRDAbusinessmissedonbothyieldandassetquality(225bpscreditcostvs.67bpsin2016).CindareportedotherDESdisposalgainsasRmb3.3bnlowerthan1H16,beinganothermajordragontheresults.Weunderstandthecompanymayintendtosetasidemoreprovisio...
