20171113-兴业证券-A-Share_Daily_Express_5页_859kb

Industrial Securities Co., Ltd. Summary

Company Information

• Address: 17F, East Tower, No.36, Changliu Road, Pudong New District, Shanghai, China, 200135
• Website: http://www.xyzq.com.cn

Market Overview

• Market Indices:
  • SSE Composite: Closed at 3447.84, up 0.44%
  • SZSE Component: Closed at 11695.00, up 0.43%
  • CSI 300: Closed at 4128.07, up 0.39%
  • ChiNext: Closed at 1906.44, up 0.31%
  • HSI: Closed at 29182.18, up 0.21%
  • HSCEI: Closed at 11684.51, down 0.52%
• Market Volume: RMB 596.50 billion (USD 89.03 billion), up 5% from previous day
• Market Performance: 6-day winning streak, with more losers than winners (1788 to 1366)

Key Market Drivers

• Sector Expansion: Hot spots expanded to steel makers, building materials, and banks, indicating broad market participation.
• Policy Support: Positive signals from the 19th National Congress of CPC and APEC summit boosted investor confidence in China's economic outlook.
• Financial Market Openness: News about opening domestic financial markets to overseas investors further enhanced optimism.

Sector Performance

Winners

• Steel and Building Materials: Benefited from expectations of government capacity reduction for environmental protection.
  • Baoshan Iron & Steel Co., Ltd. (600019): +3.84%
  • Anhui Conch Cement Co., Ltd. (600585): +5.92%
• IC Makers: Continued strong performance due to investor enthusiasm for China's semiconductor industry.
  • NAURA Technology Group Co., Ltd. (002371): +10.01%
  • Hangzhou Silan Microelectronics Co., Ltd. (600460): +7.23%
• Banks: Strong performance with ICBC (601398) up 2.41%

Losers

• Retailing: Weak performance with Sanjiang Shopping Club (601116) down 7.63% and Suning Commerce Group (002024) down 6.37%
• Food Sector: Underperformed, with Henan Shuanghui Investment (000895) down 2.80%

Daily Headlines

• Alibaba's Singles' Day: Generated RMB 168.2 billion in sales, showing strong consumer demand.
• Chery's Overseas Expansion: Seeking investors, but not those who only contribute capital.
• HNA's Name Change: Ditching the 'HNA' name to distance from government scrutiny.
• South Korea-China Summit: President Moon Jae-in will visit China in December, focusing on North Korea's nuclear program.
• Policy Developments:
  • CSRC will conduct spot checks on listed companies.
  • Expansion of free-trade zones and exploration of free-trade ports.
  • CNPC will double oil imports from Russia with a new pipeline.

Latest Company News

• BAIC Motor & Daimler: Agreed to inject RMB 400 million into a China leasing joint venture.
• China Vanke: Participating in an emerging-market bond pipeline with Alibaba and Trade & Development Bank.
• Fosun Int'l: Gaining MAS approval for reinsurance in Singapore and Guo Guangchang stepping down from leadership.
• Jiangxi Copper: Wu proposed as next general manager of smelter.
• Lenovo: Possibly acquiring Compal's stake.
• Leshi Internet: Jia Yueting unable to fulfill loan promise.
• Minsheng Bank: Huaxia Life increased A-share holdings.
• Ningbo Joyson: Raised RMB 435 million for Takata.
• SDIC Power: Planning to raise up to RMB 7 billion via rights offer.
• Shanghai Fosun Pharma: Unit to buy hospital stake for RMB 909 million.
• Sun Art Retail: Nine-month net profit up 14% YoY to RMB 2.32 billion.

Today's Research: Be Positive about Market Trend, Increase Holdings of Growth Stocks

• Market Outlook:
  • Indices reached new highs, indicating optimism.
  • Deleveraging in April and May created a buying opportunity.
  • Bond market consolidation is expected due to controlled inflation and downward economic pressure.
  • "Open Up" policy in finance favors value stocks.
• Growth Stocks:
  • Innovation is emphasized as the backbone of the modern economic system.
  • Technology sectors like AI, big data, and 5G may benefit from policy support.
  • Tech companies listed abroad may return to A-shares.
  • Some growth stocks have become reasonably priced.
  • Financial institutions are reducing their holdings in growth stocks.
• Investment Strategy:
  • Recommend increasing holdings in growth stocks.
  • Sectors to focus on: Semiconductors, 5G, environmental protection, and military industry.
  • Sectors to watch: Banks (stabilized NIM, reduced non-performing loans), insurance (consumption upgrade), and securities brokers (bottoming out).
  • Themes: SOE reform, integration of Beijing, Tianjin, and Hebei, AI, and 5G.
  • "White Horse" stocks (leading companies in advanced manufacturing and consumption upgrade) are key beneficiaries.

Investment Ratings

Industry Investment Rating

• Overweight: Industry outperforms the market.
• Neutral: Industry performs in line with the market.
• Underweight: Industry underperforms the market.

Company Investment Rating

• Strong Buy: Stock outperforms the market by more than 15%.
• Buy: Stock outperforms the market by 5% to 15%.
• Neutral: Stock outperforms or underperforms the market by less than 5%.
• Underperform: Stock underperforms the market by more than 5%.

Information Disclosure

• The company discloses information within its knowledge scope.
• Clients can access insider trading prevention and control information at www.xyzq.com.cn.

Analyst Certification

• Analysts are certified by the China Securities Association and registered as securities analysts.
• The report is issued independently and objectively with due diligence and professional methods.
• Analysts' views reflect their personal opinions and are not influenced by compensation.

Disclaimer

• The report is for internal clients only.
• The Company is a qualified securities investment consulting institution.
• The views in the report may change and are not guaranteed.
• The Company is not liable for unauthorized distribution or use of the report.
• Investment decisions should be made independently by clients at their own risk.