20160926-兴业证券-Weekly_A-share_Market_Recommendations_13页_383kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This report provides a list of top stock recommendations from the Industrial Securities Research Institute, dated September 26, 2016. It includes EPS forecasts, ratings, and investment highlights for various companies across different sectors. The recommendations are based on financial performance, business strategies, market conditions, and potential risks.

Top Stock Recommendations

Main Sectors and Companies

• Construction: ARTS Group, Beijing Oriental Yuhong Waterproof Technology
• Automobile: Jiangling Motors Corp
• Medical Equipment: Shandong Pharmaceutical Glass
• Expressway: Shenzhen Expressway
• Fodder: Guangdong Haid Group Company
• IC: Jiangsu Changjiang Electronics Technology
• Agriculture: Xinjiang Western Animal Husbandry
• Banking: Bank of Nanjing

Key Investment Highlights

ARTS Group (603017: SH)

• Expanding into more regions, including the acquisition of ECD for southwestern development.
• Exploring VR technology integration with architectural construction.
• EPS forecast: CNY 0.50 (2016), CNY 0.61 (2017), CNY 0.67 (2018).
• Risk: Government investment slump, slower contract growth.

Jiangling Motors Corp (000550: SZ)

• Successfully entered niche markets for light trucks and buses.
• Expected to release competitive new products, leading to sales rebound.
• EPS forecast: CNY 2.23 (2016), CNY 3.06 (2017), CNY 3.37 (2018).
• Risk: Sales of Everest may not meet expectations.

Shandong Pharmaceutical Glass (600529: SH)

• Leading pharmaceutical glass manufacturer with strong profitability.
• New projects using neutral-density borosilicate glass to replace imports.
• Management actively participated in private placements.
• EPS forecast: CNY 0.68 (2016), CNY 0.86 (2017), CNY 1.07 (2018).
• Risk: Industry slow-down, potential competition.

Shenzhen Expressway (600548: SH)

• Favorable conditions in the expressway sector with stable earnings.
• Valuation at CNY 30.8 billion with current stock price at 40% discount.
• Government subsidies and repurchases of road assets.
• EPS forecast: CNY 0.92 (2016), CNY 1.06 (2017), CNY 1.13 (2018).
• Risk: Systematic traffic reduction, lower returns on new expressways.

Beijing Oriental Yuhong Waterproof Technology (002271: SZ)

• Revenue and profit growth due to improved strategies.
• Strong growth prospects compared to small-scale competitors.
• EPS forecast: CNY 1.07 (2016), CNY 1.36 (2017), CNY 1.70 (2018).
• Risk: Property market demand slump, rising asphalt prices.

Guangdong Haid Group Company (002311: SZ)

• Maintains fast revenue and earnings growth despite industry slowdown.
• Stabilized cash flow and strategic M&A opportunities.
• EPS forecast: CNY 0.77 (2016), CNY 1.01 (2017), CNY 1.12 (2018).
• Risk: Natural disasters, overseas political risks.

Jiangsu Changjiang Electronics Technology (600584: SH)

• Profitability recovery and expected earnings over CNY 500 million.
• Strategic partnership with SMIC and expansion in touch panel manufacturing.
• EPS forecast: CNY 0.05 (2016), CNY 0.23 (2017), CNY 0.73 (2018).
• Risk: Semiconductor industry downturn, integration with STATs ChipPAC failing expectations.

Xinjiang Western Animal Husbandry (300106: SZ)

• Resilient earnings with 32,000 cows in stock.
• EPS forecast: -CNY 0.22 (2016), CNY 0.47 (2017), CNY 1.54 (2018).
• Risk: Major epidemics, lower milk production.

Bank of Nanjing (601009: SH)

• Benefits from the downward interest rate cycle.
• Clients include local governments and SOEs with strong creditworthiness.
• EPS forecast: CNY 2.58 (2015), CNY 3.04 (2016), / (2017).
• Risk: Systematic banking industry risk.

Key Information

• EPS Forecasts: All companies have EPS forecasts for 2016, 2017, and 2018, with some companies showing improved earnings over time.
• Ratings: The majority of companies are rated as BUY, with a few receiving STRONG BUY.
• Market Conditions: Favorable in construction, expressway, and agriculture sectors; some companies benefit from government support and strategic investments.
• Risks: Each company has identified specific risks, including government investment slumps, market demand fluctuations, and potential integration issues.

Conclusion

The report highlights several companies across various sectors with strong growth potential and favorable EPS forecasts. The recommendations are based on a combination of financial performance, strategic moves, and market conditions. Investors are advised to consider these recommendations while being aware of the associated risks.