20171012-兴业证券-Daily_Market_Review_375kb

报告摘要

Daily Market Review Summary - 2017 Oct 12

Core Content

The daily market review for October 12, 2017, provides an overview of the performance of major Chinese stock indices and key sectors on that day. It also highlights top stock recommendations from Industrial Securities for the week, based on their EPS forecasts and rating system.

Market Overview

Shanghai Composite Index:
- Closed at 3386.10, a -0.06% decrease from the previous day.
- The index experienced a narrow daily fluctuation of 20 points.
- It saw a surge starting at 14:20, with insurers and steel names leading the rebound, erasing most of the previous loss.
Shenzhen Component Index:
- Closed at 11307.32, a -0.05% decrease.
ChiNext Index:
- Closed at 1899.99, a -0.08% decline.
Market Volume:
- Total trading volume was RMB481.54 billion (USD 73.1 billion), a 15.29% decrease from the previous day.
- Losers outnumbered winners by 1915-to-1177, indicating a generally bearish market sentiment.

Sector Performance

Winners:

National Defense & Military Industry:
- Avic Aviation High-Technology Co., Ltd. (600862 SH) reached the ceiling price.
- AVIC Electromechanical Systems Co., Ltd. (002013 SZ) increased by +5.29%.
Home Appliance:
- Qingdao Haier Co., Ltd. (600690 SH) rose +5.54%.
- Hisense Kelon Electrical Holdings Co., Ltd (000921 SZ) increased by +2.16%.

Losers:

Coal:
- Shanxi Coking Co., Ltd. (600740 SH) fell -7.66%.
- Kailuan Energy Chemical Co., Ltd. (600997 SH) decreased by -4.28%.
Non-Ferrous Metals:
- Tibet Mineral Development Co., Ltd (000762 SZ) declined -3.98%.
- Shenghe Resources Holding Co., Ltd. (600392 SH) dropped -3.77%.

Top Stock Recommendations (Week)

Industrial Securities has highlighted the following stocks as top recommendations for the week, based on their expected EPS growth and ratings:

Company	Ticker	2016 EPS (CNY)	2017 EPS (CNY)	2018 EPS (CNY)	Rating	Inclusion Time
Yuan Longping High-tech Agriculture (Stock Connect)	000998:SZ	0.48	0.62	0.84	STRONG BUY	Nov. 28, 2016
Beijing Forever Technology	300365:SH	1.09	1.52	1.97	BUY	Sept. 11, 2017
Sichuan Xunyou Network Technology (Stock Connect)	300467:SZ	0.34	0.38	0.46	BUY	July 31, 2017
Henan Lingrui Pharmaceutical (Stock Connect)	600285:SZ	0.38	0.5	0.63	BUY	Sept. 11, 2017
Great Wall Motor (Stock Connect)	601633:SH	1.18	1.61	1.92	BUY	July 3, 2017
Xiamen C & D Inc (Stock Connect)	600153:SH	1.38	1.65	1.8	STRONG BUY	Sept. 18, 2017
Focus Media Information Technology (Stock Connect)	002027:SH	0.63	0.75	0.89	BUY	August 21, 2017
China State Construction Engineering (Stock Connect)	601668:SZ	1.21	1.42	1.67	STRONG BUY	May 15, 2017
Shandong Hualu Hengsheng Chemical (Stock Connect)	600426:SH	0.7	0.88	1.22	BUY	Nov. 7, 2016
Inner Mongolia Yili Industrial Group (Stock Connect)	600887:SH	1.02	1.24	/	BUY	Aug. 7, 2017

Stock Rating System

Industrial Securities uses the following rating system to evaluate stocks:

Strong Buy: Expected to outperform the Benchmark by at least 15% over the next 12 months.
Buy: Expected to outperform the Benchmark by 5% to 15% over the next 12 months.
Neutral: Expected to range between -5% and 5% compared to the Benchmark over the next 12 months.
Underperform: Expected to underperform the Benchmark by at least 5% over the next 12 months.
Benchmark: Shanghai Composite Index / Shenzhen Composite Index.

Key Information

Investors were optimistic about quarterly earnings, which contributed to a bullish sentiment in the equity market.
Stock Connect saw net capital inflow of 647 million yuan over the past three days, up from 645 million yuan in September.
Northbound capital inflow was -407 million yuan for Shanghai and +894 million yuan for Shenzhen.
The Shanghai Composite ended a three-consecutive-day inflow with a net outflow.
The Consumer Staples and Real Estate sectors performed weakly, with declines of -0.09% and -0.44%, respectively.