Erste Group: Recommendation list

8/14/2019 Erste Group: Recommendation list

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Erste Group Research - Recommendation List January 30, 2009 Seite 1

Recommendation ListInternational Stocks January 30, 2009

New recommendations:Goldcorp

Cancelled:BombardierSanyo Electric


2/14


Core Investments - Musterdepots

since 01 .01.03 s inc e 01.01 .09 since 0 1.01 .03 s ince 01.01.09

S&P 500 -22.93% -0.55% Portfolio 61.78% 4.07%

North America S&P 500 $ -3.94% -6.43% Portfolio $ 109.83% -3.20%

Secur it y ISIN Count ry Sector

Purchase

Date

Purchase

Price

Current

Price

Perf.

Euro

Outperf.

local

Perf.

local

AGNICO-EAGLE M INES CA0084741085 CN Gold-Mining 25/01/2008 61.00 65.77 0.11% 45.31% 7.82%

GOLDCORP INC CA3809564097 CN Gold-Mining 30/01/2009 36.11 36.11 0.00% 0.00% 0.00%

JOHNSON & JOHNSON US4781601046 US Healthcare 14/09/2007 63.11 58.28 - 1.85% 35.39% -7.65%

BOMBARDIER INC 'B' CA0977512007 CN Indus tr ial 30/03/2007 4.65 4.05 -15.49% 27.69% - 12.90%

BERKSHIRE HATHAWAY US0846702076 US Reinsurance/Hold ing 16/05/2008 4065.00 2900.00 -15.57% 11.97% - 28.66%

ORACLE C ORP. US68389X1054 US Software 21/09/2007 21.04 17.59 -10.15% 27.96% - 16.40%

since 01 .01.03 s inc e 01.01 .09 since 0 1.01 .03 s ince 01.01.09

STOXX 1.50% -6.13% Portfolio 54.01% -0.52%

Europe


PurchaseDate

PurchasePrice

CurrentPrice

Perf.Euro

Outperf.local

Perf.local

SOLARWORLD AG DE0005108401 DE Ener gy, A lte rnative 11/05/2007 27.91 16.47 -40.98% 9.81% - 40.98%

VESTAS WINDSYSTEMS DK0010268606 DK Ener gy, A lte rnative 09/01/2009 334.50 289.50 -13.45% -13.51% - 13.45%

RWE AG DE0007037129 DE Utility 17/01/2008 93.05 61.09 -34.35% 10.34% - 34.35%

GAM ESA ES0143416115 SP Indus tr ial 18/11/2005 11.98 12.90 7.68% 41.27% 7.68%

ROCHE HOLDING GEN. CH0012032048 CH Medica l Drugs 17/01/2008 201.60 160.30 -15.06% 24.20% - 20.49%

since 01.01.03 s ince 01.01.09 since 1.1.03 since 01.01.09

MSCI Far East 19.04% 0.22% Portfolio 50.86% 0.33%

Asia MSCI Far East (Lo) 11.25% -4.21% Port folio(Lo) 99.40% -5.25%


Purchase

Date

Purchase

Price

Current

Price

Perf.

Euro

Outperf.

local

Perf.

local

ZIJIN MINING GROUP CNE100000502 HK Gold-Mining 11/04/2008 7.94 3.87 -41.15% - 4.59% - 51.26%

LIHIRGOLD PG0008974597 AU Gold-Mining 10/10/2008 2.49 2.96 18.17% 31.01% 18.88%

NEWC REST MINING AU000000NCM7 AU Gold-Mining 11/10/2008 25.64 30.40 17.86% 30.70% 18.56%

CHINA M OBILE LTD HK0941009539 HK Communications 05/09/2003 21.30 70.00 176.42% 210.88% 228.64%

CHINA C ONSTR. BANK CNE1000002H1 HK Financ ial 30/11/2007 3021.00 3.91 -40.65% 6.35% - 47.73%

INFOSYS TECHNOLOGIES INE009A01021 IN Software 22/02/2008 1580.10 1309.65 -24.23% 16.22% - 17.12%

PTT PLC TH0646010007 TH Oil Integrated 22/02/2008 328.00 159.00 -49.02% -1070.39% - 51.52%

Core-Investments - Model ortfolios

since 01.01.03 s ince 01.01.09 since 1.1.03 since 01.01.09

Austria ATX 48.10% -2.72% Portfolio 352.47% 6.88%


Purchase

Date

Purchase

Price

Current

Price

Outperf.

local

Perf.

local

STERR. POST AG AT0000APOST4 AS Trans port 29/06/2007 32.50 24.40 39.92% - 24.92%

CA IMM O INTERNATIONAL A TCAIMMOINT5 AS Real Estate 25/09/2008 4.70 4.68 5.78% - 39.36%

ZUM TOBEL AG AT0000837307 AS Indus tr ial 08/04/2008 17.32 6.22 - 7.07% - 64.09%

VIENNA INSURANCE GROUP AT0000908504 AS Financ ial 26/05/2006 46.60 24.25 7.25% - 47.96%

INTERCELL AG AT0000612601 AS Consumer, non-c yclic al 06/04/2005 5.73 24.82 370.21% 333.16%

EVN AG AT0000741053 AS Utilities 06/01/2006 18.18 11.90 20.33% - 34.53%

RHI AT0000676903 AS Indus tr ial 10/03/2008 27.01 12.35 - 0.67% - 54.28%

ANDRITZ AT0000730007 AS Indus tr ial 23/10/2008 18.80 22.64 26.75% 20.43%

VERBUND AT0000746409 AS Utility 18/08/2008 47.48 30.00 14.74% - 36.82%

OMV A G AT0000743059 AS Oil & Gas 24/01/2008 43.60 21.21 2.43% - 51.35%

KAPSCH TRAFFICCOM A T000KAPSCH9 AS Traffic Management 13/02/2008 27.33 15.50 1.50% 1.80%


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USA - Core Investments

Ma rket Cap 7,116.50 Return on Equity 11.13Beta 1.19 Opera ting M argin 4.8052-Week-High 8.97 Debt Rati o 58.49

52-Week-Lo w 3.17 Dividend Yiel d 2.23P E c urrent Ye ar 6.43 Earnings Gro wth cu rre nt year 41.67P EG Rat io 0.17 Earnings Gro wth next year 250.63P r ice /Book Rat io 2.80 Historical Ea rnings Growth 41.09P rice/ Sales Ratio 0.29 Historical Sa les Growth 0.48

Ma rket Cap 161,701.80 Return on Equity 25.60Beta 0.69 Opera ting M argin 25.3652-Week-High 72.76 Debt Rati o 18.0452-Week-Lo w 52.06 Dividend Yiel d 3.27

P E c urrent Ye ar 12.81 Earnings Gro wth cu rre nt year 24.52P EG Rat io 1.58 Earnings Gro wth next year 6.61P r ice /Book Rat io 3.54 Historical Ea rnings Growth 11.42P rice/ Sales Ratio 2.57 Historical Sa les Growth 9.77

Ma rket Cap 10,407.58 Return on Equity 8.42

Beta 1.04 Operating M argin 39.67

52-Week-High 82.80 Debt Rati o 0.00

52-Week-Lo w 26.60 Dividend Yiel d 0.32

P E c urrent Ye ar 97.24 Earnings Gro wth cu rre nt year -25.00

P EG Rat io 4.11 Earnings Gro wth next year -36.25

P r ice /Book Rat io 3.62 Historical Ea rnings Growth 74.19

P rice/ Sales Ratio 19.23 Historical Sa les Growth 16.37

Bombardier Inc 'B'

Marke t Data / Valuation Profitability / Growth

Johnson & Johnson


A nico-Ea le Mines


Cancellation:Due to w eakening demand in the aviationsegment the company show s signs of economic deterioration.

We cannot see a positive change soon and therefore cancel

the s tock from our recommendation list.

The company is the top healthcare company w or ld-

w ide. Even if it is already a large corporation it has

always been able to find growth opportunities und to

increase its prof itability. The PE ratio is low (14), especially

regarding the high quality of the balance

sheet.

Agnico-Eagle Mines is a prof itable Canadian gold minining company

w ith revenues already exceeding CAD 400 million per year. The

company has a solid balance sheet and in an environment of r isinggold prices probably w ill generate increasing profits in the next

years.

Bombardier Inc. 'B'

3 .0

4 .0

5.0

6 .0

7.0

8 .0

9 .0

01/08 02/0803/0804/08 05/ 0806/0807/ 08 08/0809/08 10/08 11/ 08 12/08 01/09

BOMBARDIER' B' MAV60 MAV 30

Johnson & Johnson

50

53

56

59

62

65

68

71

74

01/08 02/0803/0804/08 05/ 0806/0807/0808/08 09/ 08 10/08 11/0812/ 08 01/09

JOHNSON& JOHNSON MAV60 MAV 30

Agnico Eagle Mines

20

30

40

50

60

70

80

01/08 02/ 08 03/0804/0805/08 06/08 07/ 0808/0809/0810/08 11/0812/08 01/ 09

AGNICO-EAGLE MINES MAV60 MAV 30


4/14


USA - Core Investments

M arket Cap 26,339.87 Return o n Equity 3.62

Beta 0.83 Operating M argin 27.75

52-Week-High 52.48 Debt Ratio 7.35

52-Week-Low 17.77 Dividend Yield 0.62

P E current Year 45.69 Earnings Growth current year -42.39

P EG Ratio 6.45 Earnings Growth next ye ar -20.92

P rice/B ook Ratio 1.52 Historical E arnings Growth 8.67P rice/Sales Ratio 8.34 Historical Sales Growth 24.46

M arket Cap 135,207.00 Return o n Equity 11.53Beta 0.82 Operating M argin 18.1752-Week-High 147,000.00 Debt Ratio 21.5152-Week-Low 74,100.00 Dividend Yield n.a.P E current Year 15.71 Earnings Growth current year 19.65P EG R at io Earnings Gro wth next ye ar -31.71P rice/B ook Ratio 1.13 Historical E arnings Growth 19.62

r c e/ a e s at o 1.22 s to r ca a e s ro wt 22.66

M arket Cap 88,762.26 Return o n Equity 27.64Beta 0.85 Operating M argin 35.7152-Week-High 23.62 Debt Ratio 32.8052-Week-Low 15.10 Dividend Yield 0.00

current ear 13.13 arnngs rowt current year 30.12at o 1.00 arnngs rowt next year 46.04

r ce/ oo at o 3.89 s to r ca a rn ng s r o wt 23.22r c e/ a e s at o 3.85 s to r ca a e s ro wt 19.58

Goldcorp Inc

Market Data / Valuation Profitability / Growth

Berkshire Hathawa Inc B


Oracle


Oracle is a leading softw are company w orldw ide.

With new products they are successful in expanding

sales and earnings. Cash Flow s also are solid andchances are good that Oracle can continue above

average growth for a n extended period of time.

Berkshire Hathaway is a holding company w ith the main focus on

the reinsurance business. Due to efficient management by the

investment tycoons Warren Buffe tt and Charles Munger it has a

mult i-decade long successful enterprise history. The stock can be

used as a strategic part of an equity portf olio. Berkshire

Hathaw ay appears very attractive for above average returns.

Berkshire Hathawa y -B

2,500

3,000

3,500

4,000

4,500

5,000

01/08 02/08 03/0804/0805/0806/0807/0808/0809/0810/08 11/08 12/0801/09

BERKSH IREHATHAWAY' B' MAV60 MAV 30

Oracle

14

17

20

23

01/08 02/08 03/08 04/08 05/08 06/08 07/0808/08 09/0810/08 11/08 12/0801/09

ORA CLE MAV 30 M AV60

Goldcorp

18

28

38

48

01/08 02/0803/08 04/08 05/08 06/08 07/0808/0809/0810/08 11/08 12/08 01/09

Goldcorp MAV60 MAV 30

New Recommendation: Goldcorp is a North American goldproducer that has been able to increase its sales subs tancially

w ithin the last years. Due to a favourable inc rease of the goldprice during the las t years the company also s how s st able

cash f low s. Goldcorp also has a solid balance sheet wi th an

equity ratio of nearly 74%.


5/14


Europa - Core Investments

Ma rket Cap 34,34 1.82 Return on Equity 19.29et a 0.88 perat ng argn 12.84

5 2- e e - g 89.44 e t at o 47.1052-Week-Lo w 49.10 Dividend Y ield 6.49

current ear 12.31 arn ngs ro wt current year 17.04at o 1.06 arn ngs ro wt next year 18.23

r ce / o o at o 2.91 s to r c a a rn ng s r o wt 20.39r ce / a es at o 0.77 s to r ca a es ro wt -1.15

Ma rket Cap 3,228.59 Return on Equity 18.80

et a 1.22 perat ng argn 7.675 2- e e - g 36.18 e t at o 39.835 2- e e - o w 10.10 v en e 2.12

current ear 13.60 arn ngs ro wt current year 10.00at o 0.73 arn ngs ro wt next year n.a.

r ce / o o at o 2.28 s to r c a a rn ng s r o wt 9.79

P rice/ Sales Ratio 0.94 Historical Sa les Growth 24.04

Ma rket Cap 52,875.77 Return on Equity 20.95Beta 1.41 Operating M argin 9.115 2- e e - g 700.00 e t at o 9.005 2- e e - o w 180.00 v en e 0.25

current ear 20.12 arn ngs ro wt current year 159.59at o 0.45 arn ngs ro wt next year n.a.

r ce / o o at o 4.26 s to r c a a rn ng s r o wt n.a.r ce / a es at o 1.30 s to r ca a es ro wt 17.22

RWE AG


GAMESA S.A.


Vestas Wind Systems

The Spanish manufac turer Gamesa is the market leader in

Spain and is pos itioned among the most important w ind

generator manuf acturers in the w orld w ith a market share

in 2007 upper 15%. Gamesa has i ts main produc t lines in

20 countries spread out over four continents. Good long

term potential. Buy.

RWE is one of Germany's top electricity s uppliers. It also ow ns

major UK-based utilities and domestic electr ic ity and gas supplier

RWE npow er, as w ell as operating div isions all over Europe.

Further RWE is reducing it's large overall CO2 exposure by

investing in new and existing Nuclear and alternative Energyplants. Buy.

The Danish Vestas Wind Systems A/S is present in 63 countries

and w ith a market share of 23% for years the w orlds largest

producer of w indturbines. The company has a solid order backlog

from Europe (62%) and the growth markets Americas (24%) and

Asia (14%). Due to the over proportional share price drop las t

year and the good growth outlook in the w ind indus try the s tock

has recovery and high long termpotential. Buy.

RWE

5055606570

7580

859095

100105

01/08 02/0803/08 04/ 0805/0806/ 08 07/ 0808/0809/08 10/08 11/08 12/ 0801/09

RWE MAV60 MAV30

Gamesa

10131619

222528

313437

01/08 02/0803/0804/08 05/0806/08 07/0808/08 09/ 08 10/08 11/08 12/08 01/09

GAMESA CORPN.TEGC. MAV 30 MAV60

Vestas Wind System s

120

320

520

01/08 02/0803/0804/08 05/08 06/0807/08 08/0809/08 10/08 11/08 12/08 01/ 09

Vestas MAV60 MAV30


6/14


Europa - Core Investments

Ma rket Cap 1,843.38 Return on Equity 17.57et a 1.48 perat ng argn 29.16

5 2- e e - g 37.90 e t at o 48.115 2- e e - o w 10.80 v en e 1.28

c urrent e ar arn ngs ro wt cu rre nt year -16.81at o 0.44 arn ngs ro wt next year 52.28


Ma rket Cap 141,142.40 Return on Equity 23.02et a 0.92 perat ng argn 31.36

5 2- e e - g 209.90 e t at o 11.415 2- e e - o w 140.10 v en e 3.51

current ear 14.47 arn ngs ro wt current year 23.21at o 1.64 arn ngs ro wt next year 15.94


Solarworld AG


Roche Holding AG


Due to the increased oil prices and enhanced environmental

awareness chances arise for companies of the alternative

energy-sector. Solarw orld will be able to boost its earnings the

nex t years. As Solarw orld is one of the leaders in the indus try of

integrated solarcompanies w e recommend buying the stock.

In this diff icult economic environment for cyclical companies, a

defens ive va lue such as the Sw iss pharmaceutical giant is an

attractive investment. The core business is the production of

quality drugs in a higher pr ice segment for hospitals, w here the

f irm enjoys a solid pipeline. Through acquisitions , Roche is also

in a good posi tion in its medica l technique division. We select

the stock for our recommendation list.

Solarworld

10

15

2025

30

35

40

45

50

01/08 02/0803/0804/08 05/0806/0807/ 0808/0809/ 08 10/08 11/0812/08 01/09

SOLARWORLD MAV 30 MAV60

Roche

140

155

170

185

200

215

01/ 08 02/0803/0804/08 05/0806/0807/ 0808/0809/08 10/08 11/08 12/08 01/09

ROCHE HOLDING MAV60 MAV 30


7/14


Asien - Core Investments

M a rke t C ap 14,038.67 Return on Equity 6.48Beta 0.72 Operating M argin 32.2452-Week-High 40.50 Debt Rat io 10.1852-Week-Lo w 16.55 Dividend Yield 0.47P E current Ye ar 95.09 Earnings Gro wth cu rre nt year 73.45P EG Rat io 2.86 Earnings G ro wth next year 360 .19Price/Book Rat io 4.36 Historical Ea rnings G rowth 2.60P rice/Sales Rat io 5.22 Historical Sales Growth 24.90

a r et ap 262,127.30 eturn on qu ty 286.27et a 1.00 perat ng argn 3.77

52-Week-High 297.00 Debt Rat io 60.225 2- e e - o w 110.00 v en e 0.00

current ear 34.37 arn ngs ro wt current year n.a.at o arn ngs ro wt ne xt yea r -271.31

r ce / o o at o 8.88 s to r c a a rn ng s r o wt n.a.r ce / a es at o 0.13 s to r ca a es ro wt -1.45

M a rke t C ap 905,859.30 Return on Equity 18.39Beta 1.22 Operating M argin 32.045 2- e e - g 7.29 e t at o 62.275 2- e e - o w 2.50 v en e 5.76P E current Ye ar 8.49 Earnings Gro wth cu rre nt year 42.86

at o 0.52 arn ngs ro wt next year 47.67r ce / o o at o 1.75 s to r c a a rn ng s r o wt 37.97

r ce / a es at o 2.13 s to r ca a es ro wt 15.87

NEWCREST MINING


SANYO ELECTRIC


CHINA CONSTRUCTION BANK


Aus tralia's largest gold mine operator quadrupled it's last half-year

results, production rose last year by 10% to 1.75 million ounces.

New cres t has g old reserves amounting to 40 million ounces. The

valuation per oz is co nsiderably ch eaper than the industry average.

Af ter t he bitter losses w ithin the previous w eeks , the stock is now

valued very favorably .

Cancellation:

The company w ill be acquired by Panasonic Corp f or 140

Yen/share. We do not expect an increase for this of fer

and therefore cancel the stock f rom our recommendation list.

Sanyo Elec tric

120

140

160

180

200

220

240

260

280

01/08 02/0803/08 04/0805/0806/0807/08 08/0809/08 10/08 11/08 12/0801/09

SA NYOELECTRIC MA V 30 M AV60

CCB is our top-pick w ithin the Chinese banking sector. In our

view , CCB should be a key beneficiary of the rising rate

cyc le. Grow th, valuation as w ell as marg ins are more

attractive than the Peer Group. CCB ist currently evaluatingtakeover- targets w orldw ide, the trough-train program (DII

and QDII) f rom mainland China should also support the CCB's

stock.

China Cons truction Bank

2

3

4

5

6

7

8

9

01/08 02/0803/0804/08 05/ 08 06/0807/0808/0809/0810/08 11/08 12/08 01/09

CHINA CON.BANK' H' MAV30 M AV60

Ne wcrest Minin g

10

20

30

40

01/ 08 02/ 08 03/ 08 04/ 08 05/ 08 06/ 08 07/ 08 08/ 08 09/ 08 10/ 08 11/ 08 12/ 08

M AV60 MA V 3 0


8/14



M arket Cap 1,413,834.00 Return o n Equity 25.14B e t a 1.08 Operating M argin 36.1852-Week-High 138.98 Debt Ratio 8.6652-Week-Low 50.50 Dividend Yield 4.61P E current Year 11.96 Earnings Growth current year 31.02P EG Rat io 0.67 Earnings Growth next ye ar 45.79P r ice /Book Rat io 3.06 Historica l Earnings Growth 20.67P rice/Sales Ratio 3.22 Historica l Sales Growth 21.59

M arket Cap 6,849.03 Return o n Equity -1.62B e t a 0.95 Operating M argin 21.8052-Week-High 4.39 Debt Ratio 0.0552-Week-Low 1.52 Dividend Yield 0.17P E current Year Earnings Gro wt h current year n.a.P EG Rat io 1.37 Earnings Growth next ye ar -871.43P r ice /Book Rat io 1.76 Historica l Earnings Growth n.a.P rice/Sales Ratio 6.96 Historica l Sales Growth n.a.

M arket Cap 748,241.40 Return o n Equity 37.20B e t a 0.69 Operating M argin 27.9252-Week-High 2,046.50 Debt Ratio 0.0052-Week-Low 1,040.00 Dividend Yield 2.12P E current Year 16.03 Earnings Growth current year 17.75P EG Rat io 1.04 Earnings Growth next ye ar 32.40P r ice /Book Rat io 5.42 Historica l Earnings Growth 35.24P rice/Sales Ratio 4.47 Historical S ales Growth 33.57

CHINA MOBILE


Lihir Gold


INFOSYS TECHNOLOGIES LTD


China Mobile is the leading force in the worlds biggest mobile

phone market. The company, through its subsidiaries, provides

cellulartelecommunication servic es in the People's Republic of

China. It has a solid balance sheet and is expected to showstrong growth rates in the c oming years. We recommend China

Mobile as a Buy.

The Indian IT service provider is one of the biggest

beneficiaries of globalization. In the past quarter, turnover

exceeded the USD 1 billion mark f or the f irs t time, EBIT-

margin increased to 28.8 %. For the current fis cal year, thecompany expects nearly 30% of prof it and s ales grow th,

due to the current record backlog certainly a realistic

expectation. Af ter the recent price declines, w e see the

stock now at an attractive entry- level.

The w ell establis hed gold producer, based in Papua New

Guinea, has recently announced the acquisition of Equigold.

The company now has 3.4 million ounces of additional

resources. Production is scheduled f or 2008 at 900,000

ounces of g old, at cash costs of USD 360 per ounce. 2009 a

produc tion of 1.28 million ounces at cash costs of $ 357 per

oz expected. Conclusion: Lihir should be extended f rom the

current falling energy and commodity prices and by the

sharp rise in gold prices above benefit.

China Mobile

50

60

70

80

90

100

110

120

130

140

150

160

01/08 02/08 03/08 04/08 05/08 06/ 08 07/ 08 08/ 08 09/0810/08 11/08 12/08 01/09

CHINA MOB ILE MAV30 MA V60

Infosys Technologies Ltd.

1,000

1,200

1,400

1,600

1,800

2,000

2,200

01/08 02/0803/0804/ 0805/0806/0807/ 0808/0809/0810/08 11/08 12/08 01/ 09

INFOSYS TECHNOLOGIES MAV 30 MAV60

Lihir Gold

1

2

3

4

5

01/08 02/0803/08 04/ 08 05/08 06/0807/08 08/0809/08 10/08 11/08 12/08 01/09

Li hir Gol d MAV 30 MAV60


9/14



M arket Cap 451,84 9.10 Return o n Equity 30.04B e t a 1.24 Operating M argin 7.7952-Week-High 382.00 Debt Ratio 36.3252-Week-Low 134.00 Dividend Yield 5.79P E current Year 4.59 Earnings Growth current year 1.99P EG Rat io 1.77 Earnings Growth next ye ar -28.28P r ice /Book Rat io 1.11 Historica l Earnings Growth 31.81P rice/Sales Ratio 0.22 Historica l Sales Growth 30.10

M arket Cap 76,773.48 Return o n Equity 56.78B e t a 1.60 Operating M argin 32.0552-Week-High 10.96 Debt Ratio 47.5152-Week-Low 1.39 Dividend Yield 3.04P E current Year 15.99 Earnings Growth current year 48.44P EG Rat io 1.08 Earnings Growth next ye ar 16.32

P r ice /Book Rat io 3.15 Historica l Earnings Growth 67.06P rice/Sales Ratio 3.10 Historica l Sales Growth 78.54

PTT PCL


ZIJIN MINING


The Thai oil and gas company benef its from high oil prices,

strong gas demand as w ell as significantly higher c ontract

status in the petrochemica ls division. The quality of PTT's

balance sheet is ou tstanding, due to the PE-ratio of 10x, adividend yield of 3.6 %and high prof itability w e see significant

upside potential.

Due to a aggres sive expansion strategy, China's largestgold company advanced to the fourth largest gold

producer w or ldw ide. The company is characterized by

low mining costs and a promising exploration pipeline.

Valuation and grow th prospects are favourable

compared to the peergroup, the planned A-share listing in

Shanghai should support the s tock price.

PTT

140180

220

260

300

340

380

420

01/08 02/0803/0804/08 05/0806/0807/08 08/0809/08 10/08 11/08 12/08

PTT MAV 30 MA V60

Zijin Mi ning

1

6

11

01/ 08 02/08 03/08 04/08 05/08 06/0807/08 08/08 09/08 10/08 11/08 12/08

ZIJI N MININGGROUP 'H' MAV30 MAV60


10/14


sterreich XetraCore Investments


5 2- e e - g 23.07 e t at o 50.4%5 2- e e - o w 10.00 v en e 3.4P E current Ye ar 9.71 Earnings Gro wth cu rre nt year 7.2

at o -- arn ngs ro wt next year 22.1r ce / o o at o 0.67 s to r c a a rn ng s r o wt -3.3r ce / a es at o 0.72 s to r ca a es ro wt 8.9

a r et ap 3,130.88 eturn on qu ty 10.8et a 0.90 perat ng argn --

5 2- e e - g 59.00 e t at o --5 2- e e - o w 15.41 v en e 5.4

current ear 7.39 arn ngs ro wt current year 0.9at o -- arn ngs ro wt next year 5.9

r ce / o o at o 0.78 s to r c a a rn ng s r o wt 9.7r ce / a es at o n.m. s to r ca a es ro wt --


5 2- e e - g 33.18 e t at o 24.7%5 2- e e - o w 15.70 v en e 0.0


r ce / o o at o 3.50 s to r c a a rn ng s r o wt -182.9r ce / a es at o 11.56 s to r ca a es ro wt 62.9%

EVN


Vienna Insurance Group


Intercell


The earnings development of EVN is robust due to its geographical

expansion into Centra l and Eastern Europe. Apart f rom the geogra-

phical diversification and the mult i-utility approach (w ater and

w aste), w e like the 12.5% stake in Verbund, w hich contributes

enormously to the value of the EVN stock. Including the c ompanies

consolidated at-equity, w hich have been recognized at 1.0x book

value, this is another enhancement for the value of the stock. The

company 's communicat ion policy and the stock's low liquidity are

some kind of burden, unfortunately. Our recommendation: Buy ,

target price: EUR 18.9.

Austrias largest insurance company sets great store by the

expans ion into CEE. More than one-third of the premium volume is

already being earned in the region. In Romania, the c ompany is

number one, and in the Czech Republic, Slovakia and Bulgaria i t

ranks second in the market. The co mpany has a total of 20 million

customers in 20 countries. The GDP of the CEE region is low er GDP

in comparison to Wes tern Europe and the region has an enormous

grow th potential w ith respect to insurance density. The stock

currently suf fers f rom the weak sentiment tow ards CEE. Our target

price: EUR 44.

Intercell is the f irst biotech company listed on Wiener Brs e

specialized in the development of therapeutic and prophy lactic

vaccines. The vaccine market offe rs excellent growth pers pec -

tives. The main development projects are a prophylac tic vaccine

against Japanese encephalitis (in the phase of market approval

currently) and a therapeutic com-pound against hepatitis C. The

company has a lot more projects in the pipeline and projects in the

clinical testing phase w ith cooperation partners (esp.

Novartis/Merck). Our target price: EUR 39,5.

EVN

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12

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24

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EVN MA V 30 MA V60

Vienna Insur anc Group

10152025303540455055

60

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VIENNA INS URANCEGROUP A MAV30 MAV60

Intercell

15

18

21

24

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30

33

36

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INTERCELL MAV 30 M AV60


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M a rke t C ap 475.98 Return on Equity 23.6%Beta 0.85 Operating M argin 7.0%52-Week-High 34.45 Debt Rat io 75.3%52-Week-Lo w 10.60 Dividend Yield 0.0%P E current Ye ar 7.96 Earnings Gro wth cu rre nt year - 55.5%P EG Rat io -- Earnings G ro wth next year -4.4%Price/Book Rat io 1.68 Historical Ea rnings G rowth - 35.6%P rice/Sales Rat io 0.35 Historical Sa les Growth 1.9%

a r et ap 1,70 1.00 eturn on qu ty 18.6et a 0.49 perat ng argn 7.2

5 2- e e - g 28.66 e t at o 68.0%5 2- e e - o w 19.61 v en e 10.7current ear 12.19 arn ngs ro wt current year 8.6

at o -- arn ngs ro wt next year 10.8r ce / o o at o 2.47 s to r c a a rn ng s r o wt 12.0r ce / a es at o 0.62 s to r ca a es ro wt 12.5



current ear 2.74 arn ngs ro wt current year 1.5%at o -- arn ngs ro wt next year 0.8

r ce / o o at o 0.56 s to r c a a rn ng s r o wt 18.9r ce / a es at o 0.25 s to r ca a es ro wt 10.2

RHI


sterreichische Post AG


OMV


RHI is a global player and has a w orldw ide number one position

in the refractories business . The most important customer

indus tries are iron & steel, cement & lime, nonferrous metals and

glass. The group's current targets are the strengthening of the

leading market pos ition also through acquisitions. It targets EUR2bn revenues and 12% EBIT margin by 2010. The further

backw ard integration w ith start up of its new raw material JV in

China in the course of 2008 w ill have a significant positive

margin impact. Our 12-month target price: EUR 19.

RHI

10

15

20

25

30

35

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RHI MAV 30 MAV60

Austrian Post is the leading logist ics company in Austria, w ith a

nationw ide s ervice obligation. In recent years, the f irm has been

transformed into a modern and successful company w ith high-

quality standards. Austrian Post intends to grow through

selective acquisitions, mainly in the CEE region. Recently, the

company w as facing problems in its parce l div ision. How ever,

w e see still ups ide potential for the share price. The div idend

yield of around 10% ( incl. the special dividend) should act as

support . Our target price: EUR 30.

sterreichische Post AG

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23

26

29

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OSTERREICHISCHEPOST MAV 30 MAV60

OMV currently suffers signif icantly from the recent decline in

the oil pr ice. The s tock is s till suitable as a "hedge" for the

portfolio against possible oil pr ice increases and is also a good

means to divers ify into the commodity sector. The va luation of

the stock is currently quite low , in our opinion, and does not

consider the strong substance of the company. Our target

price: under review .

OMV

152025

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354045

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OMV MAV 30 MAV60


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M a rke t C ap 344.65 Return on Equity 14.3%Beta n.a. Operating M argin 18.1%52-Week-High 43.75 Debt Rat io 46.6%52-Week-Lo w 24.55 Dividend Yield 3.5%P E current Ye ar 8.46 Earnings Gro wth cu rre nt year -23.4%

at o -- arn ngs ro wt next year 6.2r ce / o o at o 1.16 s to r c a a rn ng s r o wt 0.3r ce / a es at o 1.14 s to r ca a es ro wt -5.9

a r et ap 9,119.64 eturn on qu ty 28.0%Beta 0.84 Operating M argin 33.9%



r ce / o o at o 2.70 s to r c a a rn ng s r o wt 20.7%r ce / a es at o 2.31 s to r ca a es ro wt 11.5

a r et ap 123.86 eturn on qu ty -18.2%et a 0.78 perat ng argn -169.2


current ear -1.21 arn ngs ro wt current year 530.1at o -- arn ngs ro wt next year -19.5%

r ce / o o at o 0.24 s to r c a a rn ng s r o wt -208.4%r ce / a es at o 2.32 s to r ca a es ro wt n.a.

Kapsch TrafficCom


Verbund


CA Immo Int.


KTC benef its in the long-term from budget cons traints of

governments and from the ever r ising traf f ic volume. We see

plenty of p rojects globally in the long term. The valuation of the

stock is only based on existing projects, the disputed projec t inSlovakia is completely excluded f rom our model. Our target

price: EUR 32.7.

Due to rising cons truction costs for new pow er plants, w e

expect the electricity prices to remain at least at high levels.

90% of Verbund's current ouput is generated by hydropower.

Assuming an average w ater supply, Verbund will be able to

present another record year in 2009. However, 2010 could

bring a declining result. Our target price: under review.

Ca Immo Int.(CAII) has rece ntly cut back its development pipeline

and also stated that they w ould only do bargain hunting in the

case re al market if opportunities arise. The stock is not perfectly

liquid, but w e believe it has the perfect c onservative strategy

for this diff icult market s ituation with an estimated LTV ra tio of

only 12% at the end of 2008 and good contacts to Bank Austria

(10% ow ner of CA Immo) . Addtionally, CA Immo is constantly

increasing its stake in the company. Our target price: EUR 6.0.

Verbund

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VERBUNDGESELLS CHAFT MA V30 MAV60

Kapsch TrafficCom

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KAPSCH TRAFFIC COM MAV30 MAV60

CA Imm o International

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CA Immo MAV 30 MAV60


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P E current Ye ar 8.35 Earnings Gro wth cu rre nt year -7.7%P EG Rat io -- Earnings G ro wth next year 1.9%Price/Book Rat io 1.83 Historical Ea rnings G rowth 14.0%P rice/Sales Rat io 0.34 Historical Sales Growth 9.0%

a r et ap 288.79 eturn on qu ty 1.7%et a 0.65 perat ng argn 3.0

5 2- e e - g 20.90 e t at o 52.9%5 2- e e - o w 5.10 v en e 1.6%current ear 30.46 arn ngs ro wt current year -84.1%

at o -- arn ngs ro wt next year 50.2%r ce / o o at o 0.52 s to r c a a rn ng s r o wt - 55.7r ce / a es at o 0.25 s to r ca a es ro wt -4.5


Andritz


Zumtobel

Andritz has re cently announced new ambitous long-term

targets. Andritz now targets a sustainable EBITA-margin level of

7% (af ter 5.9%) and a sa les vo lume of EUR 4.5bn by 2010/11.

Based on the track record investors can expect that promises

w ill be delivered. We thinkt that Andritz is a good investmentcase in a recessionary environment due to a f lexible cost

strucutre and its strong exposure to the market f or renew able

energy (+40%). Our target price: EUR 40.0.

Zumtobel is the leading pure player in the highly fragmented

lighting business in Europe and a global player in the component

bus iness w ith a core competence on state-of -the-art products.

The f ocus is on components ("TridonicAtco"), professional

lighting solutions , luminaires and lighting management, primari ly

in the non-residential sector. The company is currently facing a

very tough environment but wi th the EUR 480mn, 5-year credit

agreement concluded mid 2008 it should be able to w eather the

storm. Our target price: EUR 8.0.

Andritz

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ANDRITZ MAV60 MAV30

Zumtobel

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Zumt obel MAV60 MAV 30


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Published by Erste Group Bank AG, Neutorgasse 17, 1010 Vienna, Au stria.Phone +43 (0)5 0100 - ext.

Erste Group Homepage: www.erstegroup.com On Bloomberg please type: ERBK .

This research report was prepared by Erste Group Bank AG (Erste Group) or its affiliate named herein. The information herein has been obtained from, and anyopinions herein are based upon, sources believed reliable, but we do not represent that it i s accurate or complete and it should not be reli ed upon as such. All

opinions, forecasts and estimates herein reflect our judgement on the date of this report and are subject to change without notice. The report is not intended to bean offer, or the sol icitation of any offer, to buy or sell the securities referred to herein. From time to time, Erste Group or its affiliates or the principals or employeesof Erste Group or its affiliates may have a position in the securities referred to herein or hold options, warrants or rights with respect thereto or other securities ofsuch issuers and may make a market or otherwise act as principal in transactions in any of these securities. Erste Group or its affiliates or the principals oremployees of Erste Group or its affil iates may from time to time provide investment banking or consul ting services to or serve as a di rector of a company beingreported on herein. Further information on the securities referred to herein may be obtained from Erste Group upon request. Past performance is not necessarilyindicative for future results and transactions in securities, options or futures can be considered risky. Not all transaction are suitable for every investor. Investorsshould consult their advisor, to make sure that the planned investment fits into their needs and preferences and that the involved risks are fully understood. Thisdocument may not be reproduced, distributed or published without the prior consent of Erste Group. Erste Group Bank AG confirms that it has approved anyinvestment advertisements contained in this material . Erste Group Bank AG is regulated by the Financial Services Authority for the conduct of investment businessin the UK.

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