20151116-兴业证券-Weekly_A-share_Market_Recommendations_17页_421kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document outlines weekly stock recommendations from the Industrial Securities Research Institute dated November 16, 2015, focusing on various sectors such as Real Estate, Conglomerates, Steel, Environmental Protection, and others. It provides EPS forecasts, investment highlights, company profiles, and market data for each listed company, along with ratings and potential risks.

Top Stock Recommendations

Main Points and Key Information

1. Guoxing Rongda Real Estate (000838:SZ)

• Sector: Real Estate
• Investment Highlights:
  • Strong support from Chongqing Casin Group, which is the biggest shareholder.
  • RNAV of CNY 10 per share, with recent stock purchase at CNY 9-9.2.
  • Private placement price increased to CNY 8.02 per share with a three-year lock-up period.
• Rating: BUY
• Potential Risks: Private placement implementation may not meet expectations.

2. Shenzhen Victor Onward Textile Industrial (000018:SZ)

• Sector: Conglomerates
• Investment Highlights:
  • Sino Great Wall International plans to use the company as a backdoor listing platform.
  • Strong overseas contracts and M&A plans are expected to drive earnings growth.
  • Focus on 'One Belt One Road' projects.
• Rating: BUY
• Potential Risks: Overseas business performance may underperform, currency exchange losses.

3. Macrolink Real Estate (000620:SZ)

• Sector: Real Estate
• Investment Highlights:
  • Rich land resources with a NAV of CNY 19.7 billion.
  • Active transformation into a cultural tourism company.
  • Plans to increase stake in financial institutions.
• Rating: BUY
• Potential Risks: Systematic risks in the real estate industry.

4. Shanghai Ganglian E-Commerce Holdings (300226:SZ)

• Sector: Steel
• Investment Highlights:
  • Undervalued with a market cap of CNY 9 billion.
  • Strong potential for growth in the steel e-commerce sector.
  • New general manager committed to expanding iron ore and supply chain finance.
• Rating: OUTPERFORM
• Potential Risks: Sharp steel price volatility, risk control challenges.

5. China Union Holdings (000036:SZ)

• Sector: Real Estate
• Investment Highlights:
  • Strong margin of safety with 7.6x 16E PE and 5.4x 17E PE.
  • Business transformation and restricted stock awards show commitment.
• Rating: BUY
• Potential Risks: Sales rebound may be weaker than expected, project progress may be slower.

6. Jiangling Motors (000550:SZ)

• Sector: Automobile
• Investment Highlights:
  • Strong earnings forecast with CNY 2.24, 3.64, and 4.24 EPS for 2015-2017.
  • Free cash flow of CNY 8.7 billion supports current valuation.
• Rating: BUY
• Potential Risks: SUV market underperformance, Everest performance.

7. YongXing Special Stainless Steel (002756:SZ)

• Sector: Special Steel
• Investment Highlights:
  • Strong order growth in 2015Q1.
  • Attractive valuation at 30x PE.
  • Active M&A and product restructuring to improve gross margin.
• Rating: OUTPERFORM
• Potential Risks: M&A failure, metal price drops.

8. Jincheng Paper (000820:SZ)

• Sector: Environmental Protection
• Investment Highlights:
  • Strong progress in 'culture + sports' strategy.
  • Participation in Winter Olympics and M&A fund.
• Rating: OUTPERFORM
• Potential Risks: Project progress slower than expected.

9. China United Travel (600358:SH)

• Sector: Leisure Service
• Investment Highlights:
  • Strong financial backing and restructuring.
  • Strategic partnerships for sports and cultural programs.
• Rating: BUY
• Potential Risks: Project progress slower than expected.

10. Kaidi Ecological and Environmental Technology (000939:SZ)

• Sector: Environmental Protection
• Investment Highlights:
  • Raised CNY 4.9 billion for operations.
  • Shareholder increases and participation in PPP projects.
• Rating: OUTPERFORM
• Potential Risks: Biomass power plant delays.

11. Shanghai Safbon Water Service (300262:SZ)

• Sector: Environmental Engineering and Service
• Investment Highlights:
  • Acquired leading DAF technology provider.
  • Active participation in PPP projects.
• Rating: OUTPERFORM
• Potential Risks: Acquisition may not yield expected results.

12. Fujian Yuanli Active Carbon (300174:SZ)

• Sector: Other Chemical Products
• Investment Highlights:
  • Active expansion in activated carbon market.
  • Focus on high-end products like supercapacitor carbon.
• Rating: OUTPERFORM
• Potential Risks: High-end product performance may not meet expectations.

13. Changzhou Xingyu Automotive Lighting Systems (601799:SH)

• Sector: Automotive
• Investment Highlights:
  • Strong technological upgrades and partnerships with GAC and Nissan.
  • Growth potential through production expansion and refinancing.
• Rating: BUY
• Potential Risks: Car industry demand slump, business development slower than expected.

Summary of Key Themes

• Strong Financial Backing: Several companies, especially in real estate and conglomerates, have strong shareholder support and substantial financial resources.
• Growth Drivers: M&A activities, overseas expansion, and strategic partnerships are seen as key growth catalysts.
• Sector Outlook: Real Estate, Automotive, and Environmental Protection sectors show positive outlooks, with emphasis on earnings growth and market expansion.
• Valuation and Safety: Most recommended stocks are considered undervalued or have a high margin of safety based on RNAV and PE ratios.
• Risks: The main risks include market performance not meeting expectations, regulatory challenges, and potential failure in M&A or financing plans.

Market Data Summary

Disclaimer and Analyst Certification

• The Industrial Securities Research Institute issues this report independently and objectively, using legitimate and professional research methods.
• Analysts are certified and have the professional quality of securities investment consultants.