20180626-中国银河国际证券-China_Galaxy_A-Share_Morning_Comments_3页_303kb

报告摘要

China Galaxy A-Share Morning Comments Summary (June 26, 2018)

Core Content Overview

The China Galaxy A-Share Morning Comments from June 26, 2018, provides an analysis of the A-share market performance, investment strategies, and sector-specific recommendations. It highlights the market's mixed performance, ongoing economic and external uncertainties, and suggests key investment themes for the second half of 2018.

Market Performance

Market Opening: The A-share market opened strongly on Monday following the PBOC's RRR cut over the weekend.
Market Trend: The market soon turned weak due to profit-taking, with all three major indices finishing lower.
Indices Closing:
- SHCOMP: Closed at 2,859.3, down 1.05%.
- SZSE Comp: Closed at 9,324.8, down 0.90%.
- ChiNext: Closed at 1,538.6, down 0.72%.
Turnover: The total turnover was RMB132.4bn for SHCOMP and RMB175.6bn for SZSE Comp.
RMB Movement: The RMB fell on Monday, with onshore RMB/USD dropping nearly 400 points, and offshore RMB/USD rates falling below 6.54, marking a new low since January 10, 2018.
Sector Impact: The aviation sector experienced a significant correction, which affected the broader market.

Investment Strategy

Economic Outlook: China's economy faces medium to long-term pressure due to slower growth and external uncertainties, including the Sino-US trade conflict.
Risk Management: While risks are present, they are considered manageable. The trade conflict is expected to drive industrial upgrades, and domestic consumption expansion will support the growth of high-end manufacturing.
Recommendations for H2 2018:
- Focus on stocks with value and growth potential.
- Key investment themes include:
  - Consumer Sector: Driven by policy support and strong demand.
  - Smart Manufacturing: Under the "Made in China 2025" initiative.
  - Green Economy: Growing importance due to environmental policies.
  - SOE Reforms: Expected to improve efficiency and performance.

Sector-Specific Analysis

Media Sector

Trend: Content is the primary driver of traffic in the post-traffic era.
Opportunities: China's consumption upgrade is expected to benefit the film market.
Recommended Stocks:
- Hengdian Entertainment (603103.CH): Strong brand presence and expansion in lower-tier cities.
- Enlight Media (300251.CH): Leader in media content.
- Perfect World (002624.CH): Strong video game development and rich TV & film pipeline.

Pharmaceuticals Sector

Key Focus: Innovation remains the core driver of growth.
Recommendations:
- Domestic large pharmaceutical companies, though more expensive, show strong earnings growth and visibility.
- Recommended stocks include:
  - Renhe Pharmacy (000650.CH)
  - King-Friend Biochemical Pharmaceutical (603707.CH)
  - Yifan Pharmaceutical (002019.CH)
  - Changchun High & New Technology (000661.CH)
  - Walvax Biotechnology (300142.CH)
  - Lepu Medical Technology (300003.CH)
  - Aier Eye Hospital (300015.CH)
  - Hengrui Medicine (600276.CH)
  - Jointown Pharmaceutical (600998.CH)
  - Shandong Pharmaceutical Glass (600529.CH)
  - Huadong Medicine (000963.CH)
  - Fosun Pharmaceutical (600196.CH)
  - Salubris Pharmaceuticals (002294.CH)
  - Livzon Pharmaceutical (000513.CH)
  - Kangmei Pharmaceutical (600518.CH)
  - Dong-E-E-Jiao (000423.CH)
  - Kelun Pharmaceutical (002422.CH)

Other Sector Highlights

Futures/Money Markets:
- NYMEX Crude: 68.19, down 0.57%.
- COMEX Gold: 1,267.30, down 0.27%.
- LME Copper: 6,704.00, down 1.25%.
- LME Aluminum: 2,149.50, down 1.17%.
- BDI: 1,341.00, down 0.45%.
- USD/RMB: 652.40, up 0.42%.
Top Gainers (CSI300):
- China Oil HBP Science & Tech (002554): 3.05
- Dalian Insulator Group (002606): 5.02
- Shenzhen Hirisun Technology (300277): 7.76
- Xiamen Port Development (000905): 8.31
- Shanxi Tond Chemical (002360): 5.47
Top Losers (CSI300):
- Ningbo Bird (600130): 2.93
- Avcon Information Technology (300074): 4.19
- Guangzhou Yuetai Group (600393): 3.48
- Dalian Morningstar Network (002447): 4.47
- Sichuan Shengda Forestry (002259): 3.13

Disclaimer and Risk Statement

This document is issued by China Galaxy International Securities (Hong Kong) Co., Ltd. to institutional clients.
Information is based on reliable sources but not guaranteed for accuracy or completeness.
It is for general reference only and does not constitute a personal investment recommendation.
The analysis does not consider individual client objectives, financial situations, or risk tolerance.
Past performance is not indicative of future results.

Disclosure of Interests

China Galaxy International may have financial interests in the companies discussed.
Certain directors, officers, and employees may hold positions in the mentioned companies.
The firm may participate in financing transactions, provide services, or hold investments related to these companies.
No liability is accepted for inaccuracies or omissions in the document.