20150727-兴业证券-Weekly_A-share_Market_Recommendations_16页_419kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document provides weekly stock recommendations from the Industrial Securities Research Institute, dated June 27, 2015, focusing on a variety of sectors including Aviation, Automobile, Chemical Engineering, Real Estate, Leisure Services, and Non-ferrous Metal. It includes top stock picks, investment highlights, sector analysis, and potential risks for each company.

Top Stock Picks

Main Investment Highlights

China Southern Air (600029: SH)

• Outperform rating due to high utilization rates and strong demand in the aviation sector.
• Expected to generate CNY 8 billion in profit for 2015, with earnings growth projected for the coming years.
• Strong potential for earnings improvement compared to peers like Air China and China Eastern Airlines.
• Potential Risks: Downturn in the macro economy, oil price surge, exchange rate depreciation, and competition from high-speed trains.

Guangzhou Automobile Group (601238: SH)

• Buy rating with strong earnings growth forecast (CNY 0.64 in 2015, CNY 1.04 in 2016, CNY 1.20 in 2017).
• Diversified product lines and recovery from previous lows.
• Key growth drivers include the performance of Guangqi Hongda and Guangqi Toyota, and the introduction of new JEEP SUV models.
• Potential Risks: Economic slowdown, political factors, and unmet new car sales expectations.

Kingfa Sci & Tech (600143: SH)

• Buy rating with growth expected in both sales and profits.
• Expanding into new chemical materials and biodegradable plastics.
• Establishing a supply chain management subsidiary to enhance integration and earnings.
• Potential Risks: Slow progress on funded projects, and lack of marketing success for new materials.

Shenzhen World Union Properties Consultancy (002285: SZ)

• Buy rating with clear growth prospects.
• Plans to develop a property service platform and leverage accumulated market data.
• Strong relationships with industry leaders and expansion into integrated services.
• Potential Risks: Slower-than-expected property sales.

Guoxing Rongda Real Estate (000838: SZ)

• Buy rating with strong financial backing from Chongqing Casin Group.
• High margin of safety with RNAV at CNY 10 per share.
• Recently increased private placement offering price and extended lock-up period.
• Potential Risks: Failure in private placement implementation.

Shandong Meichen Science & Technology (300237: SZ)

• Buy rating with earnings growth expected from both auto parts and garden sectors.
• Strategic transformation into environmental protection and expansion into auto after-sale markets.
• Potential Risks: Unsuccessful M&A efforts, lower-than-expected new orders.

Shenzhen Victor Onward Textile Industrial (000018: SZ)

• Buy rating with strong growth forecasts (CNY 0.88 in 2015, CNY 1.40 in 2016, CNY 1.84 in 2017).
• Expansion into overseas markets and participation in 'One Belt One Road' projects.
• Expected to grow through M&A and online sports-related platforms.
• Potential Risks: Slow overseas project execution, currency exchange losses.

China United Travel (600358: SH)

• Buy rating with potential for growth in the sports and cultural industries.
• Strategic partnerships and expansion into outdoor culture and recreation.
• Initiatives include 'Eight Qinhuai Beauties' and 'Wang Zhaojun' shows.
• Potential Risks: Slower project progress, systemic risks in the travel sector.

Lander Real Estate (000558: SZ)

• Outperform rating with plans to expand into the sports industry.
• Acquired Zhejiang Wanhang Mdt InfoTech to build an online sports platform.
• High market cap with a strong margin of safety.
• Potential Risks: Delayed project implementation.

Macrolink Real Estate (000620: SZ)

• Buy rating with clear growth plans in cultural tourism and financial industry.
• Acquired Hong Kong's JLF Investment, renamed to New Silk Road Cultural Tourism Ltd.
• Expected to consolidate its position in the steel e-commerce industry.
• Potential Risks: Systematic real estate risks.

Shanghai Ganglian E-Commerce Holdings (300226: SZ)

• Outperform rating with undervalued market cap and strong growth potential.
• Leading position in the steel e-commerce industry, with plans for a closed-loop ecosystem.
• New management focused on iron ore and supply chain finance.
• Potential Risks: Sharp steel price volatility and risk control challenges.

Zhejiang Kaier New Materials (300234: SZ)

• Outperform rating with clear growth strategies in energy-saving and environmental protection.
• Expected to see more than double in production volumes due to market expansion.
• Potential Risks: Delay in urban rail construction and poor marketing of new products.

Xiamen Tungsten (600549: SH)

• Outperform rating due to potential Tungsten price surge.
• Strong production capacity and market position in the Tungsten industry.
• Government crackdown on illegal rare earth mines is expected to boost prices.
• Potential Risks: Price volatility in Tungsten and rare earth.

Key Information Summary

• Rating Distribution: Most companies are rated BUY, while OUTPERFORM is given to China Southern Air, Lander Real Estate, and Xiamen Tungsten.
• Growth Drivers: Diversification of product lines, expansion into new markets, M&A activities, and strategic partnerships are key growth factors.
• Sector Focus: Aviation, Automobile, Chemical Engineering, Real Estate, Leisure Services, and Non-ferrous Metal.
• Earnings Forecast: Most companies show upward trends in EPS from 2015 to 2017, with some experiencing flat or declining performance in certain years.
• Potential Risks: Common across all companies include macroeconomic downturns, price volatility, and project execution delays.

Analyst Certification

• The report is issued independently and objectively by Industrial Securities.
• Analysts are certified professionals with due diligence and prudent research methods.
• Only legitimate and verified information is used for the analysis.