20160530-兴业证券-WEEKLY_A-SHARE_MARKET_RECOMMENDATIONS_INDUSTRIAL_SECURITIES_RESEARCH_INSTITUTE_13页_391kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document outlines weekly stock recommendations from the Industrial Securities Research Institute, dated May 30, 2016. It provides EPS forecasts, investment highlights, and potential risks for several listed companies across various sectors, including Dairy, Light Manufacturing, Biological Products, Fodder, Expressway, IC, Road Transportation, and Banking. The report emphasizes the companies' growth potential, strategic initiatives, and market positioning.

Key Stock Recommendations

Bright Dairy & Food (600597: SH)

• Sector: Dairy
• Rating: OUTPERFORM
• Inclusion Time: May 9, 2016
• EPS Forecast (CNY):
  • 2015: 0.44
  • 2016: 0.55
  • 2017: 0.63
• Investment Highlights:
  • 2015 was a turning point with a 30% earnings target for 2016.
  • Streamlined production lines and focused on new product development.
  • Strengthened sales in the eastern region and reversed losses in the northern region.
  • Optimized sales strategies for star products like Momchilovtsi, expected to significantly boost earnings.
• Market Data:
  • Closing Price: 11.64
  • Market Cap: 14,324.61 (CNY/Mn)
  • BVPS: 3.80

Shanghai M&G Stationery (603899: SH)

• Sector: Light Manufacturing
• Rating: OUTPERFORM
• Inclusion Time: Jan 18, 2016
• EPS Forecast (CNY):
  • 2015: 1.01
  • 2016: 1.22
  • 2017: 1.47
• Investment Highlights:
  • Recognized long-term investment value with strong institutional investor positions.
  • Focused on expanding 'Morning Glory Fine Stationary Shop' and 'Morning Glory Colipu' business lines.
  • Planning to launch a higher-end stationery brand 'Morning Glory Superior'.
  • Potential M&A to upgrade technology and expand sales channels.
• Market Data:
  • Closing Price: 18.00
  • Market Cap: 16,560.00 (CNY/Mn)
  • BVPS: 2.51

Ningbo Medicalsystem Biotechnology (300439: SZ)

• Sector: Biological Product
• Rating: OUTPERFORM
• Inclusion Time: May 23, 2016
• EPS Forecast (CNY):
  • 2015: 0.56
  • 2016: 0.67
  • 2017: 0.79
• Investment Highlights:
  • Engaged in in-vitro diagnostic products and third-party medical services.
  • Released ESOP and performance assessment programs.
  • Project acquired in 2015 will contribute CNY 20 million revenue.
  • Plans to expand product lines and strengthen distributor control.
• Market Data:
  • Closing Price: 26.94
  • Market Cap: 9,160.14 (CNY/Mn)
  • BVPS: 3.79

Guangdong Haid Group Company (002311: SZ)

• Sector: Fodder
• Rating: OUTPERFORM
• Inclusion Time: Apr 18, 2016
• EPS Forecast (CNY):
  • 2015: 0.51
  • 2016: 0.77
  • 2017: 1.02
• Investment Highlights:
  • Maintained strong revenue and earnings growth despite industry slowdown.
  • Stabilized cash flow and strategic M&A for growth.
  • Overseas and pig-raising businesses as key growth engines.
• Market Data:
  • Closing Price: 16.21
  • Market Cap: 24,972.41 (CNY/Mn)
  • BVPS: 3.28

Luzhou Laojiao (000568: SZ)

• Sector: Baijiu
• Rating: OUTPERFORM
• Inclusion Time: May 30, 2016
• EPS Forecast (CNY):
  • 2015: 0.95
  • 2016: 1.38
  • 2017: 1.63
• Investment Highlights:
  • Strong brand presence in spirits industry.
  • Diversified into glass products, hotel management, and real estate.
  • Earnings growth supported by strong market position and operational efficiency.
• Market Data:
  • Closing Price: 23.80
  • Market Cap: 33,373.61 (CNY/Mn)
  • BVPS: 7.33

Shenzhen Expressway (600548: SH)

• Sector: Expressway
• Rating: BUY
• Inclusion Time: May 3, 2016
• EPS Forecast (CNY):
  • 2015: 0.75
  • 2016: 0.92
  • 2017: 1.05
• Investment Highlights:
  • Government subsidies and asset repurchase enhance valuation.
  • Strong cash reserves and business transformation initiatives.
  • Expected 20% growth in the semiconductor industry.
• Market Data:
  • Closing Price: 7.94
  • Market Cap: 17,315.32 (CNY/Mn)
  • BVPS: 5.79

Jiangsu Changjiang Electronics Technology (600584: SH)

• Sector: IC
• Rating: BUY
• Inclusion Time: May 17, 2016
• EPS Forecast (CNY):
  • 2015: 0.05
  • 2016: 0.23
  • 2017: 0.73
• Investment Highlights:
  • Strong recovery in profitability, expected to exceed CNY 500 million in earnings.
  • Strategic partnership with SMIC, a major shareholder, enhances industry resource sharing.
  • Growth in SiP manufacturing through Korean subsidiary.
• Market Data:
  • Closing Price: 18.51
  • Market Cap: 19,174.78 (CNY/Mn)
  • BVPS: 4.16

Shandong Hi-Speed Road & Bridge (000498: SZ)

• Sector: Road Transportation
• Rating: OUTPERFORM
• Inclusion Time: May 3, 2016
• EPS Forecast (CNY):
  • 2015: 0.39
  • 2016: 0.46
  • 2017: 0.54
• Investment Highlights:
  • Strong earnings resilience and asset injection expected.
  • SOE reform and improved internal controls enhance operational efficiency.
  • Large order backlog expected to boost revenue significantly.
• Market Data:
  • Closing Price: 5.71
  • Market Cap: 6,395.99 (CNY/Mn)
  • BVPS: 2.71

Bank of Nanjing (Stock Connect) (601009: SH)

• Sector: Banking
• Rating: OUTPERFORM
• Inclusion Time: May 3, 2016
• EPS Forecast (CNY):
  • 2015: 2.1
  • 2016: 2.5
  • 2017: 2.8
• Investment Highlights:
  • Strong creditworthiness of clients (local government and SOEs) reduces bad loan risk.
  • Fixed-income assets and interest rate cycle benefits.
  • Leasing business growth and preferred stock scheme to reduce financial costs.
• Market Data:
  • Closing Price: 17.16
  • Market Cap: 57,759.80 (CNY/Mn)
  • BVPS: 15.46

Key Themes and Trends

• Growth Drivers: Companies are focusing on product innovation, market expansion, and strategic M&A to enhance growth and profitability.
• Earnings Optimism: Most companies show strong EPS growth forecasts, driven by operational improvements and market conditions.
• Sector Focus: The report highlights growth opportunities in dairy, light manufacturing, biological products, and expressway sectors.
• Risks: Potential risks include market competition, economic slowdown, management reform challenges, and valuation volatility.

Summary of EPS Forecasts

Company	2015	2016	2017
Bright Dairy & Food	0.44	0.55	0.63
Shanghai M&G Stationery	1.01	1.22	1.47
Ningbo Medicalsystem Biotechnology	0.56	0.67	0.79
Guangdong Haid Group Company	0.51	0.77	1.02
Luzhou Laojiao	0.95	1.38	1.63
Shenzhen Expressway	0.75	0.92	1.05
Jiangsu Changjiang Electronics Technology	0.05	0.23	0.73
Shandong Hi-Speed Road & Bridge	0.39	0.46	0.54
Bank of Nanjing	2.1	2.5	2.8

Disclaimer and Legal Information

• The report is issued by Industrial Securities Research Institute and is based on public information.
• The views expressed are the analysts' personal opinions and may change.
• The report is for clients only and not an invitation to trade.
• The company may have conflicts of interest and does not guarantee the accuracy or completeness of the information.
• Unauthorized use or redistribution is prohibited without prior consent.