20161205-兴业证券-Weekly_A-share_Market_Recommendations_13页_390kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document presents weekly stock recommendations from the Industrial Securities Research Institute as of December 5, 2016, focusing on several key sectors including Agriculture, Automobile, Hardware, Chemical Raw Materials, Construction, and Banking. Each recommendation includes EPS forecasts, valuation insights, and potential risks.

Top Stock Recommendations

Sector-Specific Highlights

Agriculture: Yuan Longping High-tech Agriculture (000998:SZ)

• Investment Highlights:
  • The introduction of new products boosts earnings.
  • EPS forecasts: CNY 0.48 (2016), CNY 0.62 (2017), CNY 0.84 (2018).
  • Current valuation is at a historical low, indicating limited downside risk.
  • Potential Risks: Weather uncertainty and grain price fluctuations.

Automobile: SAIC Motor (600104:SH)

• Investment Highlights:
  • Sales of JV-brand vehicles are recovering, with the Roewe RX 5 model contributing to earnings.
  • EPS forecasts: CNY 2.9 (2016), CNY 3.54 (2017), CNY 4.02 (2018).
  • Potential Risks: Passenger vehicle industry downturn and weak new product sales.

Hardware: Shenzhen Laibao Hi-tech (002106:SZ)

• Investment Highlights:
  • OGS touch panels are expected to see significant sales growth.
  • The company reported a net profit of CNY 67.36 million in the first half of 2016.
  • EPS forecasts: CNY 0.28 (2016), CNY 0.43 (2017), CNY 0.56 (2018).
  • Potential Risks: Slow progress in rail reform.

Chemical Raw Materials: Wanhua Chemical Group (600309:SH)

• Investment Highlights:
  • MDI productivity has improved, and downstream profit contributions are expected to rise.
  • The company is expanding into polyether, surface materials, and specialty amines.
  • EPS forecasts: CNY 1.49 (2016), CNY 1.88 (2017), CNY 2.35 (2018).
  • Potential Risks: Slower-than-expected downstream demand recovery and raw material price volatility.

IC: Jiangsu Changjiang Electronics Technology (600584:SH)

• Investment Highlights:
  • Profitability has recovered faster than expected.
  • The company is expanding into semiconductor manufacturing through subsidiaries.
  • EPS forecasts: CNY 0.11 (2016), CNY 0.78 (2017), CNY 1.29 (2018).
  • Potential Risks: Semiconductor industry downturn and integration issues with subsidiaries.

Construction: ARTS Group (603017:SH)

• Investment Highlights:
  • The company is expanding into new regions and exploring VR-related businesses.
  • EPS forecasts: CNY 0.45 (2016), CNY 0.68 (2017), CNY 0.86 (2018).
  • Potential Risks: Slower government investment and fewer newly-signed contracts.

Fertilizer: Shandong Hualu Hengsheng Chemical (600426:SH)

• Investment Highlights:
  • The company is focusing on gasification platforms and downstream product profitability.
  • EPS forecasts: CNY 0.7 (2016), CNY 0.88 (2017), CNY 1.22 (2018).
  • Potential Risks: Downstream demand slumps and raw material price fluctuations.

Banking: Bank of Nanjing (601009:SH)

• Investment Highlights:
  • Fixed-income products are key assets, and the bank benefits from the interest rate downward cycle.
  • Clients include local government and SOEs, reducing bad loan risks.
  • EPS forecasts: CNY 1.44 (2015), CNY 1.74 (2016), / (2017).
  • Potential Risks: Systematic banking industry risks.

Key Information

• Valuation Insights: Several companies are noted for being undervalued or at historical lows, which could offer growth potential.
• Growth Drivers: Expansion into new markets, technological advancements, and recovery from previous losses are major factors cited for growth.
• Risks: Sector-specific risks such as industry downturns, demand fluctuations, and integration challenges are highlighted.
• EPS Forecasts: The document provides detailed earnings per share projections for each company, spanning 2016 to 2018.
• Rating Status: Most recommendations are maintained, with some updated due to improved performance or new developments.

Disclaimer and Analyst Certification

• The report is issued independently and objectively by Industrial Securities Research Institute.
• The views expressed are based on legitimate and public information.
• The report is for the use of the company's clients only.
• Unauthorized redistribution or use is prohibited.
• The company reserves all rights related to the report.