20160125-兴业证券-Weekly_A-share_Market_Recommendations_13页_382kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document provides weekly stock recommendations from the Industrial Securities Research Institute, dated January 25, 2016. It outlines key investment highlights for several listed companies across different sectors, including Tourism, Other Electronics, Agriculture, Meters, Pharmaceuticals, Real Estate, and Rail. Each recommendation includes EPS forecasts, valuation metrics, and potential risks.

Top Stock Recommendations

Main Points and Key Information

Lijiang Yulong Tourism (002033.SZ)

• Sector: Tourism
• Rating: BUY
• Key Highlights:
  • Low valuation and small market cap.
  • Abundant cash reserves (CNY 1.3 billion).
  • Rich tourism resources and dispersed equity structure.
  • EPS forecast of CNY 0.95 in 2017, implying a 20x 17E PE, the lowest in the industry.
  • Potential risks include a drop in visitors and prolonged incubation of new projects.

Han's Laser Technology Industry Group (002008.SZ)

• Sector: Other Electronics
• Rating: BUY
• Key Highlights:
  • Expected peak year in 2016 due to iPhone 7 release and sapphire crystal demand.
  • Projects from follow-on offerings will start generating revenue from 2017, adding CNY 300 million to annual earnings.
  • Potential risks include lower-than-expected iPhone 7 sales and slow adoption of sapphire crystal displays.

Fujian Sunner Development (002299.SZ)

• Sector: Agriculture
• Rating: BUY
• Key Highlights:
  • Fast-growing chicken-raising industry.
  • Shares trading at a premium to peers, outperforming industry performance.
  • Potential risks include weaker-than-expected chicken price increase.

Shanghai M&G Stationery (603899: SH)

• Sector: Light Manufacturing
• Rating: OUTPERFORM
• Key Highlights:
  • Strong long-term investment value with institutional investor support.
  • Earnings growth expected to remain above 20%.
  • Plans to expand through M&A and develop higher-end brands.
  • Potential risks include management issues and slowdown in office supplies market expansion.

Jiangsu Linyang Energy (601222.SH)

• Sector: Meters
• Rating: OUTPERFORM
• Key Highlights:
  • Strong CAGR of over 25% due to efficient power plant operations.
  • Internet of Energy strategy is yielding results.
  • EPS forecast: CNY 1.32 (2015), CNY 1.48 (2016), CNY 1.93 (2017).
  • Potential risks include earnings not meeting expectations and new business development challenges.

Zhejiang Jingxin Pharmaceutical (002020.SZ)

• Sector: Pharmaceuticals
• Rating: OUTPERFORM
• Key Highlights:
  • Fastest organic growth among peers.
  • Strong growth from M&A activities.
  • Privately offered stocks at CNY 27.34, offering high margin of safety.
  • Potential risks include policy changes and slower-than-expected M&A progress.

China Union Holdings (000036.SZ)

• Sector: Real Estate
• Rating: BUY
• Key Highlights:
  • High margin of safety with RNAV at CNY 11.2.
  • Benefited from property price surge in Shenzhen.
  • Earnings rebound expected due to equity incentive plan and project funds.
  • Potential risks include slower industry recovery and delayed project progress.

Nanjing Xinlian Electronics (002546: SZ)

• Sector: Meter
• Rating: OUTPERFORM
• Key Highlights:
  • Committed to building an electricity services cloud platform.
  • EPS forecast: CNY 0.67 (2015), CNY 0.83 (2016), CNY 0.98 (2017).
  • Potential risks include slow development of the cloud platform.

Sino Great Wall (000018.SZ)

• Sector: Construction Decoration
• Rating: BUY
• Key Highlights:
  • Expected explosive growth in overseas business.
  • Fast EPS CAGR of over 50% due to overseas orders and healthcare projects.
  • Potential risks include fewer contracts, slow overseas progress, and delayed client payments.

Guangshen Railway (601333.SH)

• Sector: Rail
• Rating: OUTPERFORM
• Key Highlights:
  • Expected to benefit from railway reform and fare hikes.
  • EPS forecast: CNY 0.12 (2015), CNY 0.11 (2016).
  • Potential risks include fare hike uncertainty and land reform delays.

Investment Risks

• Lijiang Yulong Tourism: Visitor decline and new project delays.
• Han's Laser Technology: iPhone 7 sales and sapphire crystal adoption.
• Fujian Sunner Development: Chicken price fluctuations.
• Shanghai M&G Stationery: Management risk and office supplies market expansion.
• Jiangsu Linyang Energy: Earnings expectations and new business development.
• Zhejiang Jingxin Pharmaceutical: Policy changes and M&A delays.
• China Union Holdings: Industry recovery and project progress.
• Nanjing Xinlian Electronics: Cloud platform development speed.
• Sino Great Wall: Contract volume and client payment timing.
• Guangshen Railway: Uncertainty around fare hikes and land reform.

Analyst Certification

• The report is issued by Industrial Securities Research Institute, which is a qualified securities investment consulting institution.
• The analysts are certified by the Securities Association of China and have conducted independent and objective research.

Disclaimer

• The report is intended for the Company's clients only.
• The views and recommendations may change based on different assumptions and analytical methods.
• The Company reserves all rights to the report and prohibits unauthorized copying, redistribution, or use of its content.