20161212-兴业证券-Weekly_A-share_Market_Recommendations_13页_390kb

Weekly A-share Market Recommendations Summary

Core Content

This document provides weekly stock recommendations from the Industrial Securities Research Institute, dated December 12, 2016. It includes detailed EPS forecasts, company profiles, market data, investment highlights, and potential risks for several listed companies across different sectors. The recommendations are categorized into STRONG BUY and BUY ratings, with each company's financial outlook and strategic initiatives discussed.

Main Companies and Recommendations

1. Yuan Longping High-tech Agriculture (000998:SZ)

• Sector: Agriculture
• Rating: STRONG BUY (Maintained)
• EPS Forecast (2016-2018): CNY 0.48, CNY 0.62, CNY 0.84
• Investment Highlights:
  • New product launches are driving earnings growth.
  • Current valuation is at a historical low with limited downside risk.
• Potential Risks:
  • Weather uncertainty
  • Grain price fluctuations

2. SAIC Motor (600104:SH)

• Sector: Automobile
• Rating: STRONG BUY (Maintained)
• EPS Forecast (2016-2018): CNY 2.9, CNY 3.54, CNY 4.02
• Investment Highlights:
  • Sales of JV-brand vehicles are recovering.
  • New SUV models are expected to boost earnings.
• Potential Risks:
  • Passenger vehicle industry downturn
  • Weak new product sales

3. Shenzhen Laibao Hi-tech (002106:SZ)

• Sector: Hardware
• Rating: STRONG BUY (Maintained)
• EPS Forecast (2016-2018): CNY 0.28, CNY 0.43, CNY 0.56
• Investment Highlights:
  • Leading manufacturer of OGS touch panels.
  • Strong growth in the tablet and AIO PC touch panel markets.
• Potential Risks:
  • Demand for two-in-one laptops not meeting expectations
  • Changes in touch technology roadmap

4. Hangzhou Everfine Photo E Info (300306:SZ)

• Sector: Computer
• Rating: BUY (Maintained)
• EPS Forecast (2016-2018): CNY 0.31, CNY 0.87, CNY 0.99
• Investment Highlights:
  • Strategic expansion into AR, IoT, and big data.
  • Biometric recognition technology is widely applied in multiple sectors.
• Potential Risks:
  • Intensifying industry competition
  • Failure in M&A activities

5. Jiangling Motors (000550:SZ)

• Sector: Automobile
• Rating: STRONG BUY (Maintained)
• EPS Forecast (2016-2018): CNY 1.7, CNY 3.27, CNY 3.89
• Investment Highlights:
  • Strategy for entering niche markets like light trucks and buses.
  • Mid- and short-term product launches expected to improve sales and profits.
• Potential Risks:
  • Sales of Everest may not meet expectations

6. Wanhua Chemical Group (600309:SH)

• Sector: Chemical Raw Materials
• Rating: STRONG BUY (Maintained)
• EPS Forecast (2016-2018): CNY 1.49, CNY 1.88, CNY 2.35
• Investment Highlights:
  • MDI supply remains stable with improved productivity.
  • Fast-growing new business divisions like polyether and specialty amines.
• Potential Risks:
  • Slow recovery in downstream demand
  • Fluctuations in raw material prices

7. Jiangsu Changjiang Electronics Technology (600584:SH)

• Sector: IC
• Rating: STRONG BUY (Revised Up)
• EPS Forecast (2016-2018): CNY 0.11, CNY 0.78, CNY 1.29
• Investment Highlights:
  • Profitability recovery faster than expected.
  • Strong collaboration with SMIC and expansion into VR and BIM.
• Potential Risks:
  • Semiconductor industry downturn
  • Integration with STATs ChipPAC may not meet expectations

8. Shandong Hualu Hengsheng Chemical (600426:SH)

• Sector: Fertilizer
• Rating: STRONG BUY (Maintained)
• EPS Forecast (2016-2018): CNY 0.7, CNY 0.88, CNY 1.22
• Investment Highlights:
  • Strong technological capabilities in gasification platforms.
  • Upgrading traditional businesses and improving profitability.
• Potential Risks:
  • Downstream demand slumps leading to price declines
  • Raw material price fluctuations

9. Bank of Nanjing (601009:SH)

• Sector: Banking
• Rating: BUY (Maintained)
• EPS Forecast (2015-2017): CNY 1.44, CNY 1.74, /
• Investment Highlights:
  • Benefits from interest rate decline.
  • Clients include local governments and SOEs, reducing bad loan risks.
• Potential Risks:
  • Systematic risks in the banking industry

Key Information

• EPS Forecasts: All companies have detailed EPS forecasts for 2016–2018, indicating growth expectations.
• Valuation: Yuan Longping High-tech Agriculture is noted for its low valuation and limited downside risk.
• Strategic Expansion: Companies like Hangzhou Everfine Photo E Info and Jiangsu Changjiang Electronics Technology are expanding into new technologies and markets.
• Sector Analysis: The document covers companies in Agriculture, Automobile, Hardware, Computer, IC, Fertilizer, and Banking sectors.
• Risks: Each recommendation includes potential risks such as market downturns, demand fluctuations, and M&A challenges.

Conclusion

The document highlights the growth potential of several Chinese A-share companies, emphasizing their strategic moves, product innovations, and improved financial performance. The recommendations are based on thorough analysis of EPS forecasts, market data, and sector trends, with a focus on both short-term recovery and long-term growth opportunities. Investors are advised to consider the potential risks associated with each recommendation before making decisions.