20160111-兴业证券-Weekly_A-share_Market_Recommendations_13页_384kb

Weekly A-share Market Recommendations Summary

Core Content

This document presents weekly stock recommendations from the Industrial Securities Research Institute, dated January 11, 2016. It outlines key investment highlights and EPS forecasts for multiple companies across various sectors, emphasizing growth potential, market position, and potential risks.

Top Stock Recommendations

Main Sectors and Companies

Tourism

• Lijiang Yulong Tourism (002033.SZ)
  • Strong cash reserves (CNY 1.3 billion).
  • Rich tourism resources and dispersed equity structure.
  • EPS forecast for 2017: CNY 0.95.
  • Potential risks: drop in visitor numbers, prolonged project incubation.

Mechanical Components

• Anhui Yingliu Electromechanical (603308.SH)
  • Strong growth in nuclear power and military defense markets.
  • EPS forecast for 2017: CNY 1.01.
  • Potential risks: slower-than-expected growth in nuclear power business.

Poultry Raising

• Fujian Sunner Development (002299.SZ)
  • EPS forecast for 2017: CNY 2.20.
  • Potential risks: weaker-than-expected chicken price increase.

Pharmaceuticals

• China National Medicines (600511.SH)
  • Part of Sinopharm Group, undergoing asset restructuring.
  • EPS forecast for 2017: CNY 1.62.
  • Potential risks: SOE reform and asset restructuring progress not meeting expectations.

Automotive

• Changzhou Xingyu Automotive Lighting (601799.SH)
  • Strong partnerships with major automakers.
  • EPS forecast for 2017: CNY 1.81.
  • Potential risks: demand slump in the car industry, slower business development.

Meters

• Jiangsu Linyang Energy (601222.SH)
  • Fast-growing Internet of Energy strategy.
  • EPS forecast for 2017: CNY 1.93.
  • Potential risks: earnings slippage, new business development challenges.

Real Estate

• China Union Holdings (000036.SZ)
  • High margin of safety and RNAV at CNY 11.2.
  • EPS forecast for 2017: CNY 1.26.
  • Potential risks: weaker industry recovery, slower project progress.

Construction Decoration

• Sino Great Wall (000018.SZ)
  • Expanding into healthcare via PPP and BOT models.
  • EPS forecast for 2017: CNY 1.88.
  • Potential risks: fewer new contracts, slower overseas business growth, delayed client payments.

Rail

• Guangshen Railway (601333.SH)
  • Potential benefits from rail fare hikes and land development.
  • EPS forecast for 2017: CNY 0.11.
  • Potential risks: uncertainty in assets injection, rail fare hike, land reform delays.

Key Information

• The report highlights companies with strong growth potential and favorable EPS forecasts.
• Companies are rated as either BUY or OUTPERFORM, indicating their relative performance and investment potential.
• Each recommendation includes specific EPS projections, market data, and potential risks.
• The report emphasizes the importance of market conditions, such as rail reform, asset restructuring, and industry-specific trends, in influencing stock performance.

Summary of Investment Highlights

• Lijiang Yulong Tourism benefits from low valuation and strong cash reserves, with EPS expected to grow significantly.
• Anhui Yingliu Electromechanical is optimistic about its nuclear and military defense markets, with a strong EPS growth forecast.
• Fujian Sunner Development is poised for growth in the poultry sector, with a notable EPS increase.
• China National Medicines is a key player in the pharmaceutical sector, with restructuring and growth potential.
• Changzhou Xingyu Automotive Lighting has strong partnerships and is expanding its market share.
• Jiangsu Linyang Energy is leveraging its unique business model and IoT strategy for growth.
• China Union Holdings is expected to benefit from property price recovery and equity incentives.
• Sino Great Wall is expanding into healthcare and benefiting from overseas business growth.
• Guangshen Railway is positioned to benefit from rail reforms and land development, though faces some operational risks.

Conclusion

The report provides a comprehensive overview of several A-share companies, focusing on their EPS forecasts, market positions, and potential risks. It suggests that these companies are well-positioned for growth in their respective sectors, with strong emphasis on the tourism, mechanical components, pharmaceuticals, and rail industries. Investors are advised to consider these recommendations while being mindful of the associated risks.