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Weekly A-share Market Recommendations Summary

Core Content

This document provides weekly stock recommendations from the Industrial Securities Research Institute dated November 22, 2016, covering eight companies across different sectors. Each company's performance, EPS forecasts, and potential risks are outlined, with recommendations ranging from BUY to STRONG BUY.

Main Recommendations

Key Information

Anhui Yingliu Electromechanical (603308.SH)

• Sector: Machinery
• Investment Highlights:
  • Sold all foreign shares, removing a major obstacle to obtaining a military product manufacturing license.
  • Expected to benefit from more development opportunities in the military sector.
  • EPS forecast: 0.14 (2016), 0.29 (2017), 0.55 (2018)
• Potential Risk: Slower-than-expected development of nuclear power and aircraft engines projects.

SAIC Motor (600104.SH)

• Sector: Automobile
• Investment Highlights:
  • Earnings are expected to improve due to the launch of new SUV models and recovery in the industry.
  • EPS forecast: 2.9 (2016), 3.54 (2017), 4.02 (2018)
• Potential Risk: Passenger vehicle industry downturn, weak new product sales.

Shenzhen Laibao Hi-tech (002106.SZ)

• Sector: Hardware
• Investment Highlights:
  • Leading manufacturer of OGS touch panels, with strong growth expected in larger size products.
  • Revenue and net profit improved significantly in the first half of 2016.
  • EPS forecast: 0.28 (2016), 0.43 (2017), 0.56 (2018)
• Potential Risk: Disappointment in two-in-one laptop demand, revised touch technology roadmap.

Guangshen Railway (601333.SH)

• Sector: Rail Transport
• Investment Highlights:
  • Expected rail freight price increase and rail asset securitization.
  • EPS forecast: 0.22 (2016), 0.25 (2017)
• Potential Risk: Slower rail reform progress.

Hengtong Optic Electric (600487.SH)

• Sector: Telecom Device
• Investment Highlights:
  • Strong growth in optical fiber and cable industry, with 140% YoY earnings growth in 2016.
  • Strategic shift towards big data and service platforms.
  • EPS forecast: 1.12 (2016), 2.31 (2017), 3.16 (2018)
• Potential Risk: Intensifying competition, slow progress in new business development.

Rastar Group (300043.SZ)

• Sector: Mobile Internet
• Investment Highlights:
  • Engaged in business acquisitions in mobile games, sports, and culture industries.
  • EPS forecast: 0.39 (2016), 0.49 (2017), 0.58 (2018)
• Potential Risk: Slower-than-expected business progress.

Jiangsu Changjiang Electronics Technology (600584.SH)

• Sector: IC
• Investment Highlights:
  • Profitability recovery, expected to lead China's semiconductor industry.
  • Strong partnership with SMIC, contributing significant revenue.
  • EPS forecast: 0.11 (2016), 0.78 (2017), 1.29 (2018)
• Potential Risk: Semiconductor industry downturn, integration with STATs ChipPAC not meeting expectations.

Wuxi Lead Intelligent Equipment (300450.SZ)

• Sector: Machinery
• Investment Highlights:
  • Expected growth in earnings due to business expansion and product development.
  • EPS forecast: 0.62 (2016), 0.89 (2017), 1.15 (2018)
• Potential Risk: Not explicitly mentioned, but general market risks apply.

Shandong Hualu Hengsheng Chemical (600426.SH)

• Sector: Fertilizer
• Investment Highlights:
  • Strong organic growth and technological advantages in gasification platforms.
  • Upcoming projects expected to ensure earnings growth.
  • EPS forecast: 0.7 (2016), 0.88 (2017), 1.22 (2018)
• Potential Risk: Downstream demand weakness, raw material price fluctuations.

Bank of Nanjing (601009.SH)

• Sector: Banking
• Investment Highlights:
  • Benefiting from the downward interest rate cycle.
  • Clients include local governments and SOEs, reducing bad loan risk.
  • EPS forecast: 1.44 (2016), 1.74 (2017)
• Potential Risk: Systematic risks in the banking industry.

Disclaimer and Legal Information

• The report is issued by Industrial Securities Co., Ltd., a qualified securities investment consulting institution.
• The report is intended for clients only and should not be shared with unauthorized individuals.
• The views and recommendations are based on public information and may change.
• The company may hold positions in the stocks mentioned and may provide investment banking services, which could create conflicts of interest.
• The report is not an invitation to buy or sell any securities, and clients are advised to make independent investment decisions.