20160905-兴业证券-Weekly_A-share_Market_Recommendations_13页_384kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document presents weekly stock recommendations from the Industrial Securities Research Institute dated September 5, 2016, focusing on several A-share companies across different sectors. The recommendations include BUY, STRONG BUY, and OUTPERFORM ratings, with detailed EPS forecasts, investment highlights, and potential risks for each company.

Top Stock Recommendations

Main Sectors and Companies

Construction

• ARTS Group: Engaged in construction design, EPC, construction supervision, and project management.
  • Investment Highlights: Expanding into new regions, acquiring ECD for southwest development, exploring VR and architectural construction integration.
  • Potential Risk: Government investment slump, slow contract signing.
• Beijing Oriental Yuhong Waterproof Technology: Provides construction waterproof systems.
  • Investment Highlights: Revenue and profit growth, strong growth prospects, stock incentive plan.
  • Potential Risk: Property market demand slump, asphalt price rebound.

Automobile

• Jiangling Motors Corp: Manufactures and sells light vehicles and spare parts.
  • Investment Highlights: Clear business development strategy, entering niche markets, new product releases.
  • Potential Risk: Sales of Everest not meeting expectations.

Medical Equipment

• Shandong Pharmaceutical Glass: Manufactures and distributes pharmaceutical glass products.
  • Investment Highlights: Profitability improvement from high-margin products, new projects replacing imports.
  • Potential Risk: No specific risks mentioned.

Expressway

• Shenzhen Expressway (Stock Connect): Constructs, manages, and operates toll highways and expressways.
  • Investment Highlights: Favorable sector conditions, government subsidies, high market cap valuation.
  • Potential Risk: Traffic flow reduction, lower returns on new expressways.

Fodder

• Guangdong Haid Group Company: Manufactures and markets animal feeds.
  • Investment Highlights: Fast revenue and earnings growth, stable cash flow, M&A potential.
  • Potential Risk: Natural disasters, overseas political risks.

IC

• Jiangsu Changjiang Electronics Technology (Stock Connect): Operates in the semiconductor industry.
  • Investment Highlights: Profitability recovery, collaboration with SMIC, growth in SiP products.
  • Potential Risk: Semiconductor industry downturn, integration with STATs ChipPAC not meeting expectations.

Online Information Service

• People.cn (Stock Connect): Influential media platform.
  • Investment Highlights: Advertising and mobile services growth, lottery business as a new highlight.
  • Potential Risk: Slower online lottery development, obstacles in lottery business.

Water Conservancy

• Zhejiang Reclaim Construction Group: Engaged in engineering construction and related technology services.
  • Investment Highlights: Expansion into culture and entertainment, PPP model exploration.
  • Potential Risk: Fewer new orders, slower project development.

Banking

• Bank of Nanjing (Stock Connect): Commercial banking services.
  • Investment Highlights: Benefiting from interest rate decline, strong creditworthiness of clients.
  • Potential Risk: Systematic banking industry risk.

Key Information and Main Points

• The report provides EPS forecasts for each company, indicating expected earnings for 2016, 2017, and 2018.
• Rating is maintained or revised for each company, with STRONG BUY and BUY being the most common.
• The potential risks for each company include:
  • Government investment slump or slowdown
  • Industry downturn
  • Political and natural risks
  • Slow project development or new business growth
• Market data includes closing prices, total shares, shares outstanding, market cap, market float, net assets, total assets, and BVPS (Book Value per Share).
• The investment highlights emphasize:
  • Business expansion and M&A strategies
  • Technological innovation and integration
  • Strong financial performance and stable cash flow
  • Government support and subsidies
  • Growth prospects in new sectors or businesses

Conclusion

The report highlights growth opportunities across various sectors such as construction, automobile, medical equipment, expressway, fodder, IC, online information service, and banking. Each company is evaluated based on EPS forecasts, market performance, and business development strategies. While BUY and STRONG BUY ratings dominate, the report also acknowledges potential risks that investors should consider before making decisions.