HanKore

HanKore: DMG notes the profit warning are a result of accounting and are not reflective of HanKore's operations and its operating environment. House expect HanKore to report a decent operational performance of Rmb135m for FY14F, excluding accounting losses from the above which should come up to Rmb114m. DMG maintain that even if the China Everbright deal does not go through, HanKore deserves at least 15x FY15F P/E in a normalized cycle without state backing, translating into a TP of $0.097. On the appointment of KPMG LLP as the new auditors of the company, the announcement that Moore Stephens has resigned as auditors is a natural flow of event.