20161202-兴业证券-A-Share_Daily_Express_13页_787kb

报告摘要

Summary of Industrial Securities Co., Ltd. Report

Core Content

Industrial Securities Co., Ltd. provides a comprehensive market review and analysis of China's A-share market and specific companies, focusing on performance, sector dynamics, and investment opportunities.

Main Market Indices

Index	Close	Daily Change	% Change
SSE Composite	3243.84	↓29.47	↓0.90%
SZSE Component	10912.63	↓175.53	↓1.58%
CSI 300	3528.96	↓36.08	↓1.01%
ChiNext	2143.45	↓38.48	↓1.76%
HSI	22564.82	↓313.41	↓1.37%
HSCEI	9781.23	↓111.08	↓1.12%

Total market volume reached CNY 5970 billion, up 16% from the previous day. Losers outnumbered winners by 2358-to-385.

Sector Performance

Winners:

Oil sector: Strong performance due to rising global crude oil prices.
- China Petroleum & Chemical Corp. (600028): +4.36%
- Petrochina Co. (601857): +1.29%
Banks: Relatively strong performance.
- Bank Of Beijing Co. (601169): +1.27%
- China Construction Bank Corp. (601939): +1.07%

Losers:

Home Appliances: Tumbled due to massive profit-taking.
- Gree Electric Appliances, Inc. Of Zhuhai (000651): -5.98%
- Midea Group Co. (000333): -3.18%
Telecom sector: Weak performance.
- China United Network Communications (600050): -6.68%
- Jiangsu Yitong High-Tech Co. (300211): -5.14%
Nonferrous Metals: Underperformed due to waning investor speculation.
- Baoji Titanium Industry Co. (600456): -4.27%
- Rising Nonferrous Metals Share Co. (600259): -4.15%

Daily Headlines

PBOC MLF and PSL: Offered 409.5b yuan of 6-month MLF and 329.5b yuan of 1-year MLF at 2.85% and 3.0% respectively, and 35.5b yuan of PSL and 28.5b yuan of SLF.
China's non-financial companies: Restricted from lending more than 30% of owners' equity to overseas entities in yuan.
CSRC Review Meeting: Scheduled to review the merger deal between Baoshan Steel and Wuhan Steel on Dec. 7.
Egypt-China Currency Swap: Egypt's central bank plans to launch a currency swap agreement with China.
SH-HK Stock Connect: Foreign investors showed strong interest in Hengtong Optic-electric, purchasing shares at around CNY 20 per share.
BYD Monorail System: Discussions are ongoing with several countries for exporting the system.

Latest Company News

Baoshan Steel & Wuhan Steel: CSRC to review merger deal on Dec. 7.
Bocom: Completed acquisition of 80% of Banco BBM.
China Railway: Secured 37b yuan in projects.
Greenland: Sold 250 apartments in London's Spire Tower.
Guizhou Chitianhua: Production halted due to tight coal supply.
ZhongTongGuoMai Communication: IPO debuts.

Today's Research Highlights

Hengtong Optic-electric (600487.SH)

Rating: STRONG BUY (Maintained)
Key Points:
- Controlling shareholder increased holdings by 4.45 million shares, indicating confidence in long-term development.
- Revenue is forecasted to grow by 140% in 2016, 106% in 2017, and 30% in 2018.
- Net profit in 2017 is forecasted at CNY 2.8 billion.
- After dilution, the company's valuation is expected to be lower than 10× PE.
- EPS forecast: CNY 1.12 (2016), CNY 2.31 (2017), CNY 3.16 (2018).
Potential Risks: Fiercer competition, slow expansion in optical preform production, and slower-than-expected development of new businesses.

Jointown Pharmaceutical Group (600998.SH)

Rating: BUY (Maintained)
Key Points:
- Raised no more than CNY 4 billion through private placement.
- Liu Baolin, actual controller, will invest CNY 2 billion, with other six investors contributing the remaining CNY 2 billion.
- Ownership increased from 43.03% to 43.79%, showing strong confidence in the company.
- EPS forecast: CNY 0.53 (2016), CNY 0.66 (2017), CNY 0.81 (2018).
- PE forecast: 40x / 32x / 26x.
Potential Risks: High financial cost and heavy reliance on the medical system reform.

Shandong Meichen Science & Technology (300237.SZ)

Rating: BUY (Maintained)
Key Points:
- Further investment in Yunzhongge (Beijing) Science & Technology Co., Ltd. with CNY 10 million.
- Meichen will hold 20% shares in Yunzhongge.
- EPS forecast: CNY 0.5 (2016), CNY 0.66 (2017), CNY 0.8 (2018).
- PE forecast: 30.9x / 23.7x / 19.5x.
Strategic Focus:
- Expanding into the automotive aftermarket.
- Leveraging the "Internet Plus" and OBOR strategies.
- Investing in new businesses such as submarine cables, new-energy cars, and big data.

Key Financial Data (Hengtong Optic-electric)

Key Financial Ratios:
- Growth:
  - Business Revenue Increase Rate: 30.2% (2015), 42.1% (2016), 31.7% (2017), 12.4% (2018)
  - Business Profit Increase Rate: 101.4% (2015), 159.7% (2016), 107.4% (2017), 36.7% (2018)
  - Net Profit Growth Rate: 66.4% (2015), 142.5% (2016), 106.5% (2017), 36.5% (2018)
- Profitability:
  - Gross Margin: 20.6% (2015), 22.8% (2016), 28.8% (2017), 31.5% (2018)
  - Net Profit Margin: 4.2% (2015), 7.2% (2016), 11.3% (2017), 13.7% (2018)
  - ROE: 12.4% (2015), 23.3% (2016), 33.1% (2017), 31.9% (2018)
- Solvency:
  - Asset-liability Ratio: 65.7% (2015), 63.7% (2016), 57.4% (2017), 49.3% (2018)
  - Current Ratio: 1.27 (2015), 1.39 (2016), 1.62 (2017), 1.95 (2018)
  - Quick Ratio: 0.85 (2015), 0.92 (2016), 1.13 (2017), 1.45 (2018)
- Operation Capacity:
  - Asset Turnover Ratio: 0.98 (2015), 1.12 (2016), 1.18 (2017), 1.08 (2018)
  - AR Turnover Ratio: 4.33 (2015), 4.35 (2016), 4.06 (2017), 3.78 (2018)
- Valuation Ratios:
  - PE: 41.97 (2015), 17.31 (2016), 8.38 (2017), 6.14 (2018)
  - PB: 5.21 (2015), 4.04 (2016), 2.77 (2017), 1.96 (2018)

Key Financial Data (Jointown Pharmaceutical Group)

Key Financial Indicators:
- Revenue: CNY 49589 (2015), CNY 62892 (2016), CNY 78039 (2017), CNY 93718 (2018)
- Net Profit: CNY 695 (2015), CNY 873 (2016), CNY 1094 (2017), CNY 1337 (2018)
- Gross Margin: 7.6% (2015), 8.0% (2016), 8.1% (2017), 8.3% (2018)
- Net Profit Margin: 1.4% (2015), 1.4% (2016), 1.4% (2017), 1.4% (2018)
- ROE: 7.4% (2015), 8.5% (2016), 9.6% (2017), 10.5% (2018)
- EPS: CNY 0.42 (2015), CNY 0.53 (2016), CNY 0.66 (2017), CNY 0.81 (2018)
- OCFPS: CNY 0.26 (2015), CNY 0.18 (2016), CNY 0.22 (2017), CNY 0.49 (2018)
Key Data:
- Closing Price: CNY 21.30
- Total Shares (Mn): 1647.02
- Shares Outstanding (Mn): 1442.02
- Market Cap (CNY/Mn): CNY 35081.63
- Market Float (CNY/Mn): CNY 30715.01
- Net Assets (CNY/Mn): CNY 10877.33
- Total Assets (CNY/Mn): CNY 37599.93
- BVPS: CNY 6.60
Revenue Breakdown:
- Medicine wholesale: CNY 28,685.82 (97%)
- Medicine retail: CNY 741.53 (2%)
- Medicine production: CNY 318.35 (1%)