On the left Kublai Khan, on the right Genghiz. Surprisingly many people can tell the difference, and were quick with the correct answer. Stock tip, which was deliberately left out of the list below: BOC-C1, buy up to 0.16.
a) Exposure to US subprime and CDOs caused BOC to provide RMB1.15bn. The coverage was very low considering it was just 1.6% of total exposure but mgmt was confident their subprime investment were at the top bracket in terms of quality.
b) Just released 1H2007 figures saw net profit jumping by 52% year on year to RMB29.54bn. This figure was at the high end of estimates. Its one of the better bets because its exposure to domestic business is excellent. Little reliance on "investment income". Revenue base well spread, earnings from the booming stockmarket, though jumping 72% y-on-y, makes up only 13.3% of operating income.
c) Many houses upgraded their estimates and target prices. Looking at 2.7x PBR 2007 as target price by March 2008 = HK$5.25.