20160229-兴业证券-Weekly_A-share_Market_Recommendations_13页_383kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document provides weekly stock recommendations from the Industrial Securities Research Institute, dated February 29, 2016. It includes detailed EPS forecasts, sector classifications, company profiles, and investment highlights for several listed companies in China. The recommendations are categorized as either OUTPERFORM or BUY, with each company's potential risks and growth prospects outlined.

Top Stock Recommendations

Main Points and Key Information

Suzhou Boamax Technologies Group (002514:SZ)

• Sector: Mechanical Components
• Investment Highlights:
  • A pioneer in matrix flow meter manufacturing.
  • Subsidiary YZWISDOM is expected to benefit from policy changes (from sewage charge to sewage tax).
  • EPS forecast: CNY 0.40 (2015), CNY 0.64 (2016), CNY 0.93 (2017)
• Market Data:
  • Closing Price: CNY 16.05
  • Market Cap: CNY 4446.12 Mn
  • BVPS: CNY 3.57
• Potential Risk: Slower-than-expected asset acquisition

Fujian Sunner Development (002299.SZ)

• Sector: Agriculture
• Investment Highlights:
  • Processes and markets poultry products, including frozen chicken meat.
  • Strong earnings growth expected due to cost reduction and industry recovery.
  • EPS forecast: CNY -0.29 (2015), CNY 1.29 (2016), CNY 2.20 (2017)
• Market Data:
  • Closing Price: CNY 24.38
  • Market Cap: CNY 27083.74 Mn
  • BVPS: CNY 4.74
• Potential Risk: Management risk, slowdown in business expansion

Jiangsu Linyang Energy (601222.SH)

• Sector: Meters
• Investment Highlights:
  • Develops, produces, and sells electric energy meters and related products.
  • Strong CAGR in earnings due to efficient power plant operations.
  • EPS forecast: CNY 1.32 (2015), CNY 1.48 (2016), CNY 1.93 (2017)
• Market Data:
  • Closing Price: CNY 26.96
  • Market Cap: CNY 10961.98 Mn
  • BVPS: CNY 11.83
• Potential Risk: Earnings may slip expectations, new business development may face challenges

Zhejiang Jingxin Pharmaceutical (002020.SZ)

• Sector: Pharmaceuticals
• Investment Highlights:
  • Fastest organic growth among peers despite industry slowdown.
  • Strong growth from acquisitions and M&A activity.
  • EPS forecast: CNY 0.54 (2015), CNY 0.90 (2016), CNY 1.26 (2017)
• Market Data:
  • Closing Price: CNY 24.68
  • Market Cap: CNY 7887.43 Mn
  • BVPS: CNY 4.69
• Potential Risk: Policy changes in the pharmaceutical field, slower-than-expected M&A progress

China Union Holdings (000036.SZ)

• Sector: Real Estate
• Investment Highlights:
  • High margin of safety due to private offering at CNY 27.34.
  • Benefited from previous property price surge.
  • Earnings rebound expected due to equity incentive plan and project funds.
  • EPS forecast: CNY 0.07 (2015), CNY 0.90 (2016), CNY 1.26 (2017)
• Market Data:
  • Closing Price: CNY 7.46
  • Market Cap: CNY 8508.04 Mn
  • BVPS: CNY 1.67
• Potential Risk: Weaker-than-expected industry recovery, slower project progress

Anhui Yingliu Electromechanical (603308:SH)

• Sector: Mechanical Components
• Investment Highlights:
  • Strong growth in nuclear and military defense markets.
  • Core business is expected to reach an inflection point.
  • EPS forecast: CNY 0.26 (2015), CNY 0.66 (2016), CNY 0.98 (2017)
• Market Data:
  • Closing Price: CNY 18.55
  • Market Cap: CNY 7420.19 Mn
  • BVPS: CNY 4.67
• Potential Risk: Slower SOE reform, economic downturn affecting leasing business

Spring Airlines (601021:SH)

• Sector: Air Transport
• Investment Highlights:
  • Leading budget airline in China, benefiting from travel demand and Shanghai Disney.
  • Major shareholder Spring Tour helps consolidate tourism resources.
  • EPS forecast: CNY 1.85 (2015), CNY 2.75 (2016)
• Market Data:
  • Closing Price: CNY 44.04
  • Market Cap: CNY 35232.00 Mn
  • BVPS: CNY 8.02
• Potential Risk: Air accidents, slower capacity increase, yuan depreciation

Shandong Chenming Paper (000488:SZ)

• Sector: Paper Making
• Investment Highlights:
  • Strong growth in leasing business due to expansion of Shandong Chenming Finance Leasing.
  • SOE reform expected to improve paper-making earnings.
  • EPS forecast: CNY 0.52 (2015), CNY 0.68 (2016), CNY 0.87 (2017)
• Market Data:
  • Closing Price: CNY 6.96
  • Market Cap: CNY 13477.38 Mn
  • BVPS: CNY 8.54
• Potential Risk: Slower SOE reform, economic downturn affecting leasing business

Bank of Nanjing (601009:SH)

• Sector: Banking
• Investment Highlights:
  • Strong fixed-income portfolio and expected benefits from interest rate decline.
  • Clients include local governments and SOEs, reducing bad loan risk.
  • EPS forecast: CNY 2.10 (2015), CNY 2.50 (2016), CNY 2.80 (2017)
• Market Data:
  • Closing Price: CNY 14.59
  • Market Cap: CNY 49109.29 Mn
  • BVPS: CNY 13.16
• Potential Risk: Systematic risk in the banking industry

Conclusion

The report highlights several companies with strong growth potential across various sectors, including Mechanical Components, Agriculture, Pharmaceuticals, Real Estate, and Banking. Each company has specific investment highlights, EPS forecasts, and potential risks associated with their stock performance. The recommendations are based on thorough research and market analysis, with an emphasis on industry trends, business strategies, and financial indicators. Investors are advised to consider these insights alongside their own due diligence and risk assessment.