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Weekly A-share Market Recommendations Summary

Core Content Overview

This document provides a list of stock recommendations from the Industrial Securities Research Institute, dated November 2, 2015. It highlights key investment points for various companies across multiple sectors, including their EPS forecasts, company profiles, market data, and potential risks. The recommendations include "BUY" and "OUTPERFORM" ratings, indicating the analysts' confidence in the stocks' future performance.

Top Stock Recommendations

Main Points and Key Information

Guoxing Rongda Real Estate (000838:SZ)

• Sector: Real Estate
• Rating: BUY
• Key Points:
  • Strong support from major shareholder Chongqing Casin Group, who has invested up to CNY 500 million and plans to participate in a follow-on offering.
  • RNAV is CNY 10 per share, with the current stock price close to this value.
  • Potential risks include the failure of the private placement scheme.

Shandong Meichen Science & Technology (300237:SZ)

• Sector: Construction
• Rating: BUY
• Key Points:
  • Post-acquisition of Sunny Stone, the company now operates in both auto parts and garden businesses.
  • Strong earnings growth expected for 2015-2016.
  • Potential risks include M&A underperformance and lower-than-expected new orders.

Shenzhen Victor Onward Textile Industrial (000018:SZ)

• Sector: Conglomerates
• Rating: BUY
• Key Points:
  • Asset injection by Sino Great Wall International will increase share capital and strengthen its position.
  • Active overseas expansion and involvement in the 'One Belt One Road' projects.
  • Potential risks include overseas order fulfillment and currency exchange losses.

Macrolink Real Estate (000620:SZ)

• Sector: Real Estate
• Rating: BUY
• Key Points:
  • Rich land resources and a NAV of CNY 19.7 billion.
  • Acquired a stake in a Hong Kong company, indicating a shift towards cultural tourism.
  • Potential risks include systematic real estate industry risks.

Shanghai Ganglian E-Commerce Holdings (300226:SZ)

• Sector: Steel
• Rating: OUTPERFORM
• Key Points:
  • Undervalued with a market cap of CNY 9 billion.
  • Plans to develop a close-loop ecosystem and expand through M&A.
  • Potential risks include steel price volatility and regulatory challenges.

Zhejiang Kaier New Materials (300234:SZ)

• Sector: Construction Material
• Rating: OUTPERFORM
• Key Points:
  • Key player in the vitreous enamel cladding panel market.
  • Clear growth strategy targeting energy-saving and environmental protection markets.
  • Potential risks include delays in urban rail construction and new product marketing challenges.

Guangdong Sky Dragon Printing Ink Group (300063:SZ)

• Sector: Media
• Rating: OUTPERFORM
• Key Points:
  • Transitioning into a digital marketing platform.
  • Expected to benefit from M&A and stronger business performance.
  • Potential risks include less synergy from acquisitions and economic downturns.

Hna-Caissa Travel Group (600358:SH)

• Sector: Food and Beverage
• Rating: BUY
• Key Points:
  • Provides inflight meal and railway catering services.
  • Strong financial backing with a market cap of CNY 6.06 billion.
  • Potential risks include fierce competition in the travel sector.

China Union Holdings (000036:SZ)

• Sector: Real Estate
• Rating: BUY
• Key Points:
  • Strong financial position with free cash flow of CNY 8.7 billion.
  • Significant growth in the light truck and light bus markets.
  • Potential risks include slower-than-expected sales rebound and project delays.

Jiangling Motors (000550:SZ)

• Sector: Automobile
• Rating: BUY
• Key Points:
  • Strong market position and high EPS forecast.
  • Expected to benefit from emission standard upgrades and new product launches.
  • Potential risks include underperformance in the SUV market and slower expansion.

Juneyao Airlines (603885.SH)

• Sector: Aviation
• Rating: BUY
• Key Points:
  • Fast-growing LCC with a strong presence in Shanghai.
  • Benefiting from Shanghai Disney Resort and Pudong Airport expansion.
  • Potential risks include economic downturns and air crash incidents.

Shenzhen Noposion Agrochemicals (002215:SZ)

• Sector: Chemical Engineering
• Rating: BUY
• Key Points:
  • Transitioning from pesticide production to a rural Internet provider.
  • Strong offline resources and brand influence.
  • Potential risks include M&A failure and metal price drops.

YongXing Special Stainless Steel (002756:SZ)

• Sector: Special Steel
• Rating: OUTPERFORM
• Key Points:
  • Strong orders and expected earnings growth.
  • Attractive valuation and potential for M&A expansion.
  • Potential risks include raw material price volatility and product development challenges.

Jincheng Paper (000820:SZ)

• Sector: Environmental Protection
• Rating: OUTPERFORM
• Key Points:
  • Engaged in paper and adhesive production, as well as steam and electricity generation.
  • Strategic partnership with Scenery Culture for performing arts projects.
  • Potential risks include M&A failure and metal price drops.

Summary of Investment Themes

• Real Estate Sector: Multiple companies benefit from strong shareholder support, regional development opportunities, and strategic transformations.
• Construction and Materials Sector: Growth is expected through M&A, new product launches, and expansion into high-growth markets.
• Steel and Chemical Engineering Sector: Companies are expected to see strong performance due to favorable market conditions and strategic moves.
• Aviation and E-Commerce Sector: Strong growth potential from infrastructure development, consumer trends, and market expansion.
• Environmental and Tourism Sector: Companies are shifting towards more sustainable and diversified business models, with potential for long-term value creation.

Overall Outlook

The report suggests a positive outlook for the listed companies, with many expected to outperform the market due to strong financial fundamentals, strategic transformations, and growth opportunities. However, potential risks such as M&A failure, market volatility, and regulatory challenges are highlighted for each company.