20160913-兴业证券-Weekly_A-share_Market_Recommendations_13页_384kb

报告摘要

Weekly A-share Market Recommendations Summary

Core Content

This document presents weekly stock recommendations from the Industrial Securities Research Institute dated September 13, 2016, focusing on 9 listed companies across various sectors. Each company is evaluated based on its EPS forecasts, rating, investment highlights, and potential risks.

Key Companies and Recommendations

ARTS Group (603017: SH)

Sector: Construction
Rating: BUY
Inclusion Time: Sept. 5, 2016
EPS Forecast (2016-2018): CNY 0.50, CNY 0.61, CNY 0.67
Investment Highlights:
- Expanding business to more regions through acquisitions, including ECD for the southwestern market.
- Exploring new businesses combining VR technology with architectural construction.
- Increasing investment in Chongqing Lufu Yinxiang Digital Technology.
Potential Risks:
- Sharp government investment slump.
- Slower-than-expected increase in new contracts.

Jiangling Motors Corp (000550: SZ)

Sector: Automobile
Rating: STRONG BUY
Inclusion Time: August 1, 2016
EPS Forecast (2016-2018): CNY 2.23, CNY 3.06, CNY 3.37
Investment Highlights:
- Clear strategy for business development.
- Entry into niche markets of light truck and light bus.
- Competitive new products expected to boost sales and profitability.
Potential Risks:
- Sales of Everest may fail to meet expectations.

Shandong Pharmaceutical Glass (600529: SH)

Sector: Medical Equipment
Rating: BUY
Inclusion Time: August 29, 2016
EPS Forecast (2016-2018): CNY 0.68, CNY 0.86, CNY 1.07
Investment Highlights:
- Leading pharmaceutical glass manufacturer with improved profitability.
- New neutral-density borosilicate glass projects expected to replace imports.
- Strong management participation in private placement.
Potential Risks:
- Systematic risks affecting the sector.

Shenzhen Expressway (600548: SH)

Sector: Expressway
Rating: STRONG BUY
Inclusion Time: August 8, 2016
EPS Forecast (2015-2017): CNY 0.92, CNY 1.06, CNY 1.13
Investment Highlights:
- Favorable conditions in the expressway sector.
- High market cap valuation with significant discount to fair value.
- Government subsidies and asset repurchase activities.
Potential Risks:
- Reduction in traffic flow due to systematic risk.
- Lower-than-expected returns from new expressways.

Beijing Oriental Yuhong Waterproof Technology (002271: SZ)

Sector: Construction
Rating: BUY
Inclusion Time: August 29, 2016
EPS Forecast (2016-2018): CNY 1.07, CNY 1.36, CNY 1.70
Investment Highlights:
- Revenue and profit growth after implementing business strategies.
- Strong growth prospects despite challenges in the balance sheet and cash flow.
- Second-phase stock incentive plan with high exercise requirements.
Potential Risks:
- Property market demand slump.
- Asphalt price rebound.

Guangdong Haid Group Company (002311: SZ)

Sector: Fodder
Rating: STRONG BUY
Inclusion Time: Sept. 5, 2016
EPS Forecast (2016-2018): CNY 0.77, CNY 1.01, CNY 1.12
Investment Highlights:
- Fast revenue and earnings growth despite industry slowdown.
- Cost reductions and operational strengths.
- Strategic acquisitions and overseas expansion.
Potential Risks:
- Natural disasters.
- Overseas political risks.

Jiangsu Changjiang Electronics Technology (600584: SH)

Sector: IC
Rating: STRONG BUY (Revised Up)
Inclusion Time: May 17, 2016
EPS Forecast (2016-2018): CNY 0.05, CNY 0.23, CNY 0.73
Investment Highlights:
- Profitability recovery faster than expected.
- SMIC's investment boosts industry resource sharing.
- Growth in semiconductor industry with expected 20% CAGR.
Potential Risks:
- Semiconductor industry downturn.
- Integration with STATs ChipPAC may not meet expectations.

People.cn (603000: SH)

Sector: Online Information Service
Rating: OUTPERFORM
Inclusion Time: August 22, 2016
EPS Forecast (2016-2018): CNY 0.24, CNY 0.25, CNY 0.27
Investment Highlights:
- Key player in SOE reform.
- Strong growth in online lottery business.
- Diversified revenue streams from advertising and information services.
Potential Risks:
- Slower-than-expected online lottery development.
- Obstacles in lottery business.

Shenzhen Laibao Hi-tech (002106: SZ)

Sector: Hardware
Rating: BUY
Inclusion Time: Sept 12, 2016
EPS Forecast (2016-2018): CNY 0.28, CNY 0.42, CNY 0.62
Investment Highlights:
- Leading manufacturer of OGS touch panels.
- Diversified product mix including AIO PC touch panels.
- Strong revenue growth in the first half of 2016.
Potential Risks:
- Demand for two-in-one laptops may not meet expectations.
- Revised touch technology roadmap.

Bank of Nanjing (601009: SH)

Sector: Banking
Rating: BUY
Inclusion Time: August 29, 2016
EPS Forecast (2015-2017): CNY 2.58, CNY 3.04, /
Investment Highlights:
- Benefiting from interest rate decline.
- Clients include local governments and SOEs, reducing bad loan risks.
Potential Risks:
- Systematic risks in the banking industry.

Key Sectors Covered

Construction: ARTS Group, Beijing Oriental Yuhong Waterproof Technology
Automobile: Jiangling Motors Corp
Medical Equipment: Shandong Pharmaceutical Glass
Expressway: Shenzhen Expressway
Fodder: Guangdong Haid Group Company
IC: Jiangsu Changjiang Electronics Technology
Online Information Service: People.cn
Hardware: Shenzhen Laibao Hi-tech
Banking: Bank of Nanjing

Summary of Investment Views

The research institute maintains a BUY or STRONG BUY rating for most companies, indicating strong growth potential.
EPS forecasts are optimistic, with consistent growth expectations across most sectors.
Key drivers include business expansion, technological innovation, government support, and diversification.
Risks are primarily associated with systematic factors, market demand, and integration challenges.

Disclaimer

The report is issued by Industrial Securities Co., Ltd., a qualified securities investment consulting institute.
It is intended solely for its clients.
The views and recommendations may change based on new information.
The report is not an invitation to buy or sell any securities.
Independent investment consultants should be consulted for investment decisions.

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