Daily Insights20080703

1. Comments on the hike in the on-grid electricity price
We suggest investors should pay close attention to Yunnan Wenshan
Electric Power Co. The power price hike will likely further boost its
profitability.
2. Comments on the hike in on-grid power price by China Yangtze
Power and Huadian Power International
We expect the power price increase can bring about net profit of about 0.85
fen in EPS to China Yangtze Power Co and 0.12 yuan in 2008 and 0.20
yuan in 2009 in EPS to Huadian Power International Corp.
3. Substantial price hike of LME copper & aluminum
As far as we are concerned, the growth rate of aluminum demand is more
promising than that of cooper, therefore we remain optimistic about the 2H
price performance of aluminum and rate the copper and aluminum industry
at Outperform.
4. Ping An tax inspection routine, interim results concerns
undue—BUY (maintained)
We believe the tax inspection event is of great significance since it
showcases the company's credibility and corporate governance. We see
little possibility for Ping An to make provisions for asset impairment in the
upcoming report
5. Shaanxi Broadcast &TV Network Intermediary (600831): pull out of
ads, no major impact
The company's traditional businesses have grown slowly in recent years.
However, from a long-term perspective, the company holds great potential
and we maintain "ADD".
6. Futures Daily-A50 maintains long
Breaking news
􀂾 State Council: Outline of national grain safety plan passed
􀂾 Futures trading volume up 148% in 1st half
􀂾 Export: Chinese exporters face emerging problem of defaulted
payments