Dim Sum Express

Power Equipment/New Energy: NEV volume growth to strengthen in peak seasonWe expect NEV volume growth to accelerate further in June-July as the 2H peak season arrives. Wemaintain our estimate of 700,000 units for full-year NEV output and sales this year, with grade A00PVs and logistics vehicles to be the main growth drivers. With ongoing power industry reform andthe relaxation of restrictions on new distribution grid construction, distribution grids for industrial parkswith a high and stable power consumption demand will become a focal point of investment. Asprivate-sector companies become more involved in distribution grid construction, traditionalequipment manufacturers will diversify their business relying on their technological advantages, andparticipate in distribution grid construction by way of finance leasing and project master contractingHK Retail Sector Monthly: April retail sales below consensus but maintain positive growthRetail sales rose 0.1% YoY in April, below consensus of +2.8%. Growth is down from +3.1% in Marchas mainland visitor arrivals growth softened from +10% to +2%, auto sales fell 14% in April, and localconsumption weakened as outbound tourism surged due to the shift in the Easter holiday. Excludingauto sales, April retail sales rose 0.7% YoY (vs +2.5% YoY in March). Although growth in April wasnot as strong as March, we do not view this negatively as growth still remained positive. We thinkthe recovery in HK retail sales will continue in 2Q17 and 3Q17.

    Wisdom Education (6068 HK, Buy): Encouraging student admission target for the 2017/18school-yearThe company targets to grow its student number from 31,788 in Sept 2016 to 40,000 in Sept 2017by adding 3,200 new students through M&A and 5,000 new students organically. We believe studentenrolment in Sept 2017 could exceed this 40,000 target