China XLX

China XLX: CIMB ceases coverage of China XLX given its poor stock liquidity. Its share price has not had any spectacular movements since its dual listing in HK in late 2009. 2Q/1H12 core profit forms 52% and 74% of house FY12 forecast, considered in line with our numbers though ahead of consensus. Overall, house expecting a tougher 2H12 in view of various earnings constraints. Last TP was $0.43 (5.5x CY13 P/E, 50% discount to larger peers) with an Outperform rating.