20160815-兴业证券-Weekly_A-share_Market_Recommendations_13页_386kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document provides weekly stock recommendations from the Industrial Securities Research Institute for August 15, 2016, focusing on several key companies across different sectors. The recommendations are based on financial forecasts, market data, and investment highlights, with a range of ratings from BUY to STRONG BUY.

Main Stock Recommendations

Key Investment Highlights

Beijing Homyear Capital Holdings

• Core Business: Commodity housing distribution and property leasing.
• Growth Potential: Engaged in medical supply chain finance with strong future prospects.
• EPS Forecast: CNY 0.84 (2016), CNY 1.05 (2017), CNY 1.16 (2018).
• Risks: Property sales may underperform; hospital operations may miss expectations; medical sales may slump; medical finance may face operational risk.

Jiangling Motors Corp

• Core Business: Light vehicles and spare parts.
• Growth Potential: Entry into light truck and light bus markets; competitive new products expected.
• EPS Forecast: CNY 2.23 (2016), CNY 3.06 (2017), CNY 3.37 (2018).
• Risks: Sales of Everest may not meet expectations.

Jointown Pharmaceutical Group

• Core Business: Western medicine, traditional Chinese medicine, and medical devices.
• Growth Potential: Leading distributor in China; benefiting from pharmaceutical reform; integrating downstream resources.
• EPS Forecast: CNY 0.53 (2016), CNY 0.64 (2017), CNY 0.77 (2018).
• Risks: Slower progress in new businesses.

Shenzhen Expressway

• Core Business: Toll highways and expressways.
• Growth Potential: Favorable conditions in the sector; stable earnings from mature roads.
• EPS Forecast: CNY 0.75 (2015), CNY 0.92 (2016), CNY 1.05 (2017).
• Risks: Systematic risk affecting traffic flow; lower-than-expected returns from new expressways.

Tangshan Jidong Cement

• Core Business: Cement and clinker manufacturing.
• Growth Potential: Earnings resilient due to supply and demand in the Beijing-Tianjin-Hebei region; potential for quarterly earnings growth.
• EPS Forecast: CNY 0.04 (2016), CNY 0.61 (2017), CNY 0.75 (2018).
• Risks: Regulatory approval for M&A; slower regional demand recovery.

Guangdong Haid Group Company

• Core Business: Animal feeds and distiller's dried grains.
• Growth Potential: Fast revenue and earnings growth despite industry slowdown; strategic acquisitions and overseas expansion.
• EPS Forecast: CNY 0.77 (2016), CNY 1.01 (2017), CNY 1.12 (2018).
• Risks: Natural disasters; overseas political risks.

Jiangsu Changjiang Electronics Technology

• Core Business: Semiconductor products, including discrete devices and integrated circuits.
• Growth Potential: Leading in China's semiconductor industry; expected to grow at 20% over five years.
• EPS Forecast: CNY 0.05 (2016), CNY 0.23 (2017), CNY 0.73 (2018).
• Risks: Semiconductor industry downturn; integration with ChipPAC may fail; business transformation challenges.

Hengtong Optic-Electric

• Core Business: Optical fiber and cables.
• Growth Potential: Strong demand for optical fiber; expected earnings growth of 100% in 2016 and 50% in 2017.
• EPS Forecast: CNY 0.75 (2016), CNY 1.12 (2017), CNY 1.35 (2018).
• Risks: Intensifying competition; drop in optical fiber prices; slow business transformation.

Jiangsu Alcha Aluminum

• Core Business: Pure aluminum foil, hydrophilic-coated aluminum foil, and aluminum scrip coil.
• Growth Potential: 'Dual main business' strategy; expansion into hospital sanitation and medical equipment.
• EPS Forecast: CNY 0.32 (2016), CNY 0.39 (2017), /.
• Risks: Slow progress in healthcare transition; reduced processing fees for aluminum products.

Shenzhen Soling Industrial

• Core Business: CID system and related services.
• Growth Potential: Organic growth and M&A; expanding into factory-installed products.
• EPS Forecast: CNY 0.43 (2016), CNY 0.54 (2017), CNY 0.69 (2018).
• Risks: Business integration challenges; intense competition in IoV and smart driving sectors.

Key Sectors and Ratings

• Diversified Finance: Beijing Homyear Capital Holdings (BUY)
• Automobile: Jiangling Motors Corp (STRONG BUY)
• Pharmaceuticals: Jointown Pharmaceutical Group (BUY)
• Expressway: Shenzhen Expressway (STRONG BUY)
• Cement: Tangshan Jidong Cement (BUY)
• Fodder: Guangdong Haid Group Company (STRONG BUY)
• IC: Jiangsu Changjiang Electronics Technology (STRONG BUY)
• Optical Fiber: Hengtong Optic-Electric (STRONG BUY)
• Aluminum: Jiangsu Alcha Aluminum (BUY)
• IT Service: Shenzhen Soling Industrial (BUY)

Additional Notes

• The document emphasizes the importance of market data and EPS forecasts in investment decisions.
• Risk factors are identified for each company, including operational risks, market competition, regulatory challenges, and sector-specific risks.
• The report also includes a disclaimer regarding the use of the information and potential conflicts of interest.