20180620-中国银河国际证券-China_Galaxy_A-Share_Morning_Comments_（晨会纪要）_3页_304kb

报告摘要

Trade War Impact: The escalation of the Sino-US trade war over the weekend led to a sharp decline in the A-share market on the first trading day after the Dragon Boat Festival.
Indices Performance:
- SHCOMP opened below the 3,000 level and hit a two-year low, closing at 2,907.8 with a -3.78% drop.
- SZSE Comp closed at 9,414.8, down -5.31%.
- CSI 300 fell to 3,621.1, a -3.53% decline.
- ChiNext dropped nearly -5.76%, closing below 1,600.
- HSI and HSCEI also declined by -2.78% and -3.18%, respectively.
Market Sentiment: Panic selling dominated, with over 100 stocks hitting limit-down and 2,600 stocks reporting losses over 5%. The market is considered technically oversold, and a rebound is expected as indices approach historical troughs.
Sectoral Outlook: The market is likely to consolidate in the near term due to fragile sentiment.

Investment Recommendation: Quality industry leaders may present opportunities post-correction. Sub-segment leaders with strong cash flows and faster earnings growth are preferred.
Recommended Stocks:
- Renhe Pharmacy (000650.CH)
- Shandong Pharmaceutical Glass (600529.CH)

Growth Drivers: Domestic manufacturers' increased market share and expansion of multiple units (MU) in high-speed rail equipment.
Recommended Stocks:
- CRRC (601766.CH)
- Kangni Mechanical & Electrical (603111.CH)
- Beijing Dinghan Technology (300011.CH)

Recommendation: Focus on structural changes in the industry from regional to national operations.
Recommended Stocks:
- Daqin Railway (601006.CH)
- China Railway Hi-tech Industry (600125.CH)
- Tianjin Port (600717.CH)
- Qinhuangdao Port (601326.CH)

Futures/Money Markets:
- NYMEX Crude fell -1.16% to 64.93.
- COMEX Gold dropped -0.27% to 1,276.60.
- LME Copper and Aluminum fell -1.99% and -1.82%, respectively.
- BDI declined -0.21% to 1,442.00.
- USD/RMB rose +0.90% to 647.43.

Non-ferrous Metals: Sector may see re-rating opportunities with improved macro environment.
Wuhan Department Store (000501.CH): 2017 results in-line; 2018 earnings depend on high-end consumption reform.
Hongqi China (002697.CH): Fresh food and convenience stores to be key growth drivers in 2018.
Property: Transaction volume rising in Tier 1 and 3 cities; Tier 2 cities remain weak.
Non-bank Financials: New asset management rules expected to reshape the industry.
Retail: 47 retailers reported positive net profit growth in Q1 2018; recovery on track.
Quantitative Analysis: Funds' equity exposure reached 89%; growth stocks outperformed.
Media: eSports included as demonstration sport in Paris 2024 Olympics.
GigaDevice Semiconductor (603986.CH): New capacity boosts operations; breakthroughs in storage products expected.
Changjiang Electronics (600584.CH): Losses narrowing; benefiting from improving industry sentiment.
Holitech Technology (002217.CH): Camera and FPC as new growth drivers; earnings growth to accelerate.
TMT: Focus on medical diagnosis and chip import substitution.
Macro: New asset management rules impacting public funds.
China Yangtze Power (600900.CH): Power generation hit a record high; operations slightly increased.
Strategy: Advises caution due to frequent market sentiment changes.
Winka Times Department (603101.CH): Steady growth in 2017; key focus on Xinjiang expansion and transformation.

The document is issued by China Galaxy International Securities (Hong Kong) Co., Ltd. for institutional clients.
No guarantees are made regarding the accuracy or completeness of the information.
The analysis does not consider individual client investment objectives, financial situations, or risk tolerance.
Past performance is not indicative of future results.

China Galaxy International may have financial interests in the companies mentioned.
Some directors, officers, and employees may be affiliated with the companies discussed.
The firm may have provided investment advice or services, or received compensation, from the mentioned companies.