20161114-兴业证券-Weekly_A-share_Market_Recommendations_13页_384kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document provides weekly stock recommendations from the Industrial Securities Research Institute for November 14, 2016, focusing on key companies across multiple sectors. The recommendations are based on EPS forecasts and investment highlights, with an emphasis on growth potential, business expansion, and risk factors.

Top Stock Recommendations

Key Investment Highlights

ARTS Group (Construction)

• Expanding into new regions through acquisitions (e.g., ECD).
• Exploring VR technology integration with architectural construction.
• Expected to accelerate M&A and business consolidation.
• EPS forecast: CNY 0.45 (2016), CNY 0.68 (2017), CNY 0.86 (2018).
• Risk: Government investment slump, slow contract signing.

SAIC Motor (Automobile)

• Industry recovery leading to improved earnings from JV and self-owned brands.
• Expected to reduce losses in 2017, with SUVs driving growth.
• EPS forecast: CNY 2.9 (2016), CNY 3.54 (2017), CNY 4.02 (2018).
• Risk: Passenger vehicle industry downturn, slow new product sales.

Shenzhen Laibao Hi-tech (Hardware)

• Leading manufacturer of OGS touch panels.
• Growing demand for two-in-one laptops and tablets.
• Revenue improved significantly in H1 2016.
• EPS forecast: CNY 0.28 (2016), CNY 0.43 (2017), CNY 0.56 (2018).
• Risk: Slow laptop growth, touch technology roadmap revisions.

Guangshen Railway (Rail Transport)

• Potential for rail freight price increase, improving earnings.
• Rail asset securitization and land development are expected to gain traction.
• EPS forecast: CNY 0.22 (2016), CNY 0.25 (2017).
• Risk: Slow rail reform progress.

Hengtong Optic Electric (Telecom Device)

• Strong growth in optical fiber and cable industry, with 20% CAGR expected.
• Expansion into big data and service platforms.
• EPS forecast: CNY 1.12 (2016), CNY 2.31 (2017), CNY 3.16 (2018).
• Risk: Intensifying competition, slow new business progress.

Rastar Group (Mobile Internet)

• Engaged in M&A in mobile games, sports, and culture industries.
• Acquired 56% stake in Espanyol, boosting strategic positioning.
• EPS forecast: CNY 0.39 (2016), CNY 0.49 (2017), CNY 0.58 (2018).
• Risk: Slower-than-expected business progress.

Shandong Meichen Science & Technology (Auto Parts)

• Subsidiary Sunny Stone driving growth through PPP projects.
• Expanding into auto after-sale market.
• EPS forecast: CNY 0.5 (2016), CNY 0.66 (2017), CNY 0.8 (2018).
• Risk: Business consolidation not meeting expectations, low new order volume.

Shandong Hualu Hengsheng Chemical (Fertilizer)

• Strong technological capabilities in gasification platforms.
• Profitable downstream products and plans for traditional business upgrades.
• EPS forecast: CNY 0.7 (2016), CNY 0.88 (2017), CNY 1.22 (2018).
• Risk: Downstream demand weakness, raw material price fluctuations.

Bank of Nanjing (Banking)

• Fixed-income products form a key part of its asset base.
• Clients include local governments and SOEs, reducing bad loan risk.
• EPS forecast: CNY 1.44 (2015), CNY 1.74 (2016).
• Risk: Systematic banking industry risks.

Risk Factors

• Government investment slump
• Slow contract signing
• Passenger vehicle industry downturn
• Demand for two-in-one laptops failing expectations
• Touch technology roadmap revisions
• Slow rail reform progress
• Business consolidation not meeting expectations
• Slow new business progress
• Chemical product price downturn
• Raw material price fluctuation
• Systematic banking industry risks

Disclaimer

• The report is issued by Industrial Securities Co., Ltd., a qualified securities investment consulting institute.
• The views and recommendations are based on public information and are subject to change.
• The report is intended for clients only and may not be shared with unauthorized parties.
• The company reserves all rights to the report and prohibits unauthorized copying or redistribution.