DeutscheBankMarketsResearchRatingHoldAsiaChinaBanking/FinanceBrokersCompanyHaitongSecurities-HAlertDate30August2017Results1H17–In-line,weakerbrokerageandmarginfinancingtodragReutersBloombergExchangeTicker6837.HK6837HKHSI6837ADRTickerISINHAITYUS4053051037________________________________________________________________________________________________________________DeutscheBankAG/HongKongTheviewsexpressedaboveaccuratelyreflectthepersonalviewsoftheauthorsaboutthesubjectcompaniesandits(their)securities.Theauthorshavenotandwillnotreceiveanycompensationforprovidingaspecificrecommendationorview.DeutscheBankdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.PricesarecurrentasoftheendoftheprevioustradingsessionunlessotherwiseindicatedandaresourcedfromlocalexchangesviaReuters,Bloombergandothervendors.FOROTHERIMPORTANTDISCLOSURESPLEASEVISIThttp://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=6837.HKMCI(P)083/04/2017.Priceat29Aug2017(HKD)13.04Pricetarget-12mth(HKD)16.1052-weekrange(HKD)15.20-12.36HANGSENGINDEX27,863EstherChweiResearchAnalyst(+852)22036200esther.chwei@db.comLexieZhouResearchAnalyst(+852)22036180lexie.zhou@db.comStockdataMarketcap(HKDm)127,320Marketcap(USDm)19,171Sharesoutstanding(m)11,501.7Majorshareholders–Freefloat(%)85Avgdailyvaluetraded(USDm)20.3Source:DeutscheBankNetprofits-5.6%yoy,implying2Q17-29.0%Haitongannounced1H17resultstoday.NetprofitcameinatRmb4,023mn(-5.6%yoy),in-linewiththepre-announcement,whichimplied2Q17declineof19.4%yoy.Itaccountedfor50%of2017EDBeand43%ofBBGconsensus.Thedragcamemainlyfrombrokerageandnetinterestincome,whichweredown31.7%and13.8%,respectively.Assetmanagement(AM)andinvestmentbanking(IB)werethesweetspot,recordingyoygrowthof44.5%(onalowbase)and8.7%(onhigherincomefromequityunderwriting).Investmentincome,similartomostmajor...
