20151019-兴业证券-Weekly_A-share_Market_Recommendations_17页_422kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document provides a list of top stock recommendations from the Industrial Securities Research Institute as of October 19, 2015. It includes detailed investment highlights, EPS forecasts, sector classifications, and company profiles for each listed firm. The recommendations are categorized as BUY or OUTPERFORM, with an emphasis on growth potential, financial support, and market opportunities.

Main Stock Recommendations

Key Highlights by Company

Guoxing Rongda Real Estate

• Sector: Real Estate
• Rating: BUY
• Key Points:
  • Strong support from major shareholder Chongqing Casin Group with significant capital injection.
  • High margin of safety with RNAV at CNY 10 per share.
  • Potential private placement scheme may fail expectations.

Shandong Meichen Science & Technology

• Sector: Construction
• Rating: BUY
• Key Points:
  • Acquired Sunny Stone, diversifying into environmental protection and auto parts.
  • Fast earnings growth expected in 2015-2016.
  • Risks include M&A performance and new order volumes.

Shenzhen Victor Onward Textile Industrial

• Sector: Conglomerates
• Rating: BUY
• Key Points:
  • Sino Great Wall International's backdoor listing.
  • Overseas expansion and M&A activities as growth drivers.
  • Risks include overseas order fulfillment and currency exchange losses.

Lander Sports Development

• Sector: Real Estate
• Rating: OUTPERFORM
• Key Points:
  • Active expansion in the sports industry.
  • Plans to develop an online sports-related service platform.
  • Risks include slower-than-expected project progress.

Macrolink Real Estate

• Sector: Real Estate
• Rating: BUY
• Key Points:
  • Rich land resources and high NAV of CNY 19.7 billion.
  • Strategic transformation into a cultural tourism company.
  • Risks include systematic real estate risks.

Shanghai Ganglian E-Commerce Holdings

• Sector: Steel
• Rating: OUTPERFORM
• Key Points:
  • Undervalued with a market cap of CNY 9 billion.
  • Expected to consolidate its position in the steel e-commerce industry.
  • Risks include steel price volatility and potential failure in M&A synergy.

Zhejiang Kaier New Materials

• Sector: Construction Material
• Rating: OUTPERFORM
• Key Points:
  • Key player in the vitreous enamel cladding panel market.
  • Targeting energy-saving and environmental protection markets.
  • Risks include urban rail construction delays and new product marketing.

Guangdong Sky Dragon Printing Ink Group

• Sector: Media
• Rating: BUY
• Key Points:
  • Transforming into a digital marketing platform.
  • Valuation suggests strong upside potential.
  • Risks include lower synergy from acquisitions and economic downturns.

China Union Holdings

• Sector: Real Estate
• Rating: BUY
• Key Points:
  • Low valuation with high margin of safety.
  • Commitment to business transformation.
  • Risks include weaker-than-expected sales and project delays.

Jiangling Motors

• Sector: Automobile
• Rating: BUY
• Key Points:
  • High growth potential with new product releases.
  • Strong free cash flow and market cap.
  • Risks include SUV market underperformance and Everest performance.

Juneyao Airlines

• Sector: Aviation
• Rating: BUY
• Key Points:
  • Fast growth expected with expansion of Shanghai's infrastructure.
  • Stronger position as a LCC operator.
  • Risks include economic downturns and air crash incidents.

Shenzhen Noposion Agrochemicals

• Sector: Chemical Engineering
• Rating: BUY
• Key Points:
  • Transitioning to an integrated rural Internet provider.
  • Strong offline resources and brand influence.
  • Risks include slower-than-expected M&A progress.

YongXing Special Stainless Steel

• Sector: Special Steel
• Rating: OUTPERFORM
• Key Points:
  • Strong growth in orders and net profit.
  • Attractive valuation and potential M&A.
  • Risks include raw material price volatility and product development failure.

Xiamen Savings Environmental

• Sector: Special Steel
• Rating: OUTPERFORM
• Key Points:
  • Completed acquisitions of key environmental tech firms.
  • Signed a combined heat and power generation project.
  • Risks include slower M&A progress.

Summary of Key Information

• Rating Distribution: Most companies are rated BUY, with a few rated OUTPERFORM.
• Sector Focus: The recommendations span across Real Estate, Construction, Steel, Chemical Engineering, Aviation, and Media.
• Growth Drivers: Many companies are expected to benefit from M&A, expansion into new markets, and sector-specific growth opportunities.
• Risks Highlighted: Risks include M&A performance, market volatility, project delays, and sector-specific challenges.
• Financial Support: Strong financial backing from major shareholders is a common theme among the recommended stocks.
• Valuation: High margin of safety and attractive valuations are frequently noted, suggesting potential for capital appreciation.

EPS Forecasts (Industrial Securities)

Conclusion

The report highlights companies with strong growth potential, supported by major shareholders and strategic initiatives. It emphasizes the importance of financial safety, M&A activity, and sector-specific opportunities. Investors are advised to consider these stocks based on their EPS forecasts, market positions, and risk factors.