20160405-兴业证券-Weekly_A-share_Market_Recommendations_13页_384kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document presents weekly stock recommendations from the Industrial Securities Research Institute dated April 5, 2016. It highlights several companies across different sectors, providing EPS forecasts, investment rationale, and potential risks. The recommendations are categorized as OUTPERFORM or BUY, with a focus on growth potential, market position, and financial performance.

Top Stock Recommendations

Key Investment Highlights

Shanghai M&G Stationery

• Recognized for long-term investment value.
• Earnings growth is expected to exceed 20%.
• Strong institutional investment positions.
• High-quality assets make it a safe haven in weak markets.
• Focus on expanding 'Morning Glory Fine Stationery Shop' and 'Morning Glory Colipu' brands.
• Potential risk: management risk and slowdown in office supplies market.

Jiangsu Linyang Energy

• Earnings growth with CAGR over 25% due to strong power plant operations.
• 'Internet of Energy' strategy is yielding results.
• High-end brands show significant growth in 2016.
• Potential risk: earnings may fall short of expectations and new business development challenges.

Luzhou Laojiao

• A global spirits manufacturer with diversified operations.
• Strong financial performance and stable market position.
• Potential risk: systematic risks in the tourism industry.

Zhejiang Jingxin Pharmaceutical

• Fastest organic growth in the pharmaceutical sector.
• Strong growth driven by acquisitions.
• High margin of safety due to private stock offering.
• Potential risk: policy changes and slower-than-expected M&A progress.

Songcheng Performance Development

• Net profit rose 75% YoY in 2015 due to the maturity of the 'Qiangqing' program.
• Aggressive nationwide expansion plan.
• Acquired 6.cn, a profitable video platform.
• Potential risk: systematic risks related to tourism.

China Union Holdings

• High margin of safety with RNAV of CNY 11.2.
• Benefited from property price surge and equity incentive plans.
• Strong cash flow and business transformation potential.
• Potential risk: slower industry recovery and delayed project progress.

Lander Sports Development

• Strategic collaboration with Architectural Design General Institute.
• First-phase ESOP implemented with shareholder support.
• Shareholding reduction to focus on sports industry.
• Potential risk: underperformance in sports business development.

Shandong Chenming Paper

• Strong growth in paper-making business due to SOE reform.
• Leasing business is becoming a key earnings driver.
• Preferred stock scheme approved, reducing financial expenses.
• Potential risk: slower SOE reform and economic downturn affecting leasing earnings.

Bank of Nanjing

• Strong performance due to fixed-income assets and local government/SOE clients.
• Low risk of bad loans due to creditworthiness of clients.
• Potential risk: systematic risk in the banking sector.

Key Sectors and Ratings

Conclusion

The report emphasizes the potential of various sectors and companies in the A-share market, with a focus on growth, diversification, and strategic initiatives. Companies such as Shanghai M&G Stationery, Jiangsu Linyang Energy, and Zhejiang Jingxin Pharmaceutical are highlighted for their strong earnings growth and market position. The Bank of Nanjing and China Union Holdings are rated as BUY, indicating strong investment potential. The report also acknowledges the risks associated with each recommendation, including market competition, systematic risks, and management challenges.