20151012-兴业证券-Weekly_A-share_Market_Recommendations_19页_683kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document provides weekly investment recommendations for several A-share companies in China, highlighting their financial performance, growth strategies, and potential risks. The recommendations are based on EPS forecasts and market valuations, with a focus on sectors such as Chemical Engineering, Real Estate, Construction, and others. The analysis emphasizes the companies' competitive advantages, strategic moves, and outlook for future earnings.

Top Stock Recommendations

Main Points and Key Information

Kingfa Sci & Tech

• Sector: Chemical Engineering
• Core Business: Modified plastics, fire resistant resin, reinforced resin, etc.
• Growth Strategy: Balanced strategy for 2015, expansion into new chemical materials.
• Earnings Forecast: CNY 0.36 (2015), CNY 0.46 (2016), CNY 0.60 (2017)
• Rating: BUY
• Potential Risks: Slower project progress, new material marketing results

Guoxing Rongda Real Estate

• Sector: Real Estate
• Core Business: Chemical machinery equipment, property development
• Growth Strategy: Strong support from Chongqing Casin Group, private placement, expansion
• Earnings Forecast: CNY 0.60 (2015), CNY 0.75 (2016), CNY 0.86 (2017)
• Rating: BUY
• Potential Risks: Private placement implementation failure

Shandong Meichen Science & Technology

• Sector: Construction
• Core Business: Damping rubber, hose products, auto parts
• Growth Strategy: Acquisition of Sunny Stone, expansion into environmental protection
• Earnings Forecast: CNY 0.72 (2015), CNY 1.18 (2016), CNY 1.57 (2017)
• Rating: BUY
• Potential Risks: M&A failure, new orders below expectations

Shenzhen Victor Onward Textile Industrial

• Sector: Conglomerates
• Core Business: Printed and dyed fabrics, construction services
• Growth Strategy: Overseas expansion, M&A, asset injection
• Earnings Forecast: CNY 0.88 (2015), CNY 1.40 (2016), CNY 1.84 (2017)
• Rating: BUY
• Potential Risks: LNG cost inefficiency, AR and inventory risks

Lander Sports Development

• Sector: Real Estate
• Core Business: Property development, materials distribution, catering
• Growth Strategy: Expansion into sports industry, M&A, asset injection
• Earnings Forecast: CNY 0.09 (2015), CNY 0.21 (2016), CNY 0.17 (2017)
• Rating: OUTPERFORM
• Potential Risks: Project progress slower than expected

Macrolink Real Estate

• Sector: Real Estate
• Core Business: Real estate development, financial investments
• Growth Strategy: Cultural tourism transformation, overseas expansion
• Earnings Forecast: CNY 0.35 (2015), CNY 0.40 (2016), CNY 0.47 (2017)
• Rating: BUY
• Potential Risks: Systematic real estate risks

Shanghai Ganglian E-Commerce Holdings

• Sector: Steel
• Core Business: Steel e-commerce, market information services
• Growth Strategy: Digital marketing, M&A, ecosystem development
• Earnings Forecast: CNY 0.17 (2015), CNY 0.66 (2016), CNY 1.03 (2017)
• Rating: OUTPERFORM
• Potential Risks: Acquisition synergy issues, economic downturn, market volatility

Zhejiang Kaier New Materials

• Sector: Construction Material
• Core Business: Vitreous enamel cladding panels, ceramic products
• Growth Strategy: Targeting energy-saving and environmental protection markets
• Earnings Forecast: CNY 0.53 (2015), CNY 0.70 (2016), CNY 0.92 (2017)
• Rating: OUTPERFORM
• Potential Risks: Urban rail construction delays, new product marketing issues

Zhangjiagang Furui Special Equipment

• Sector: SME Board
• Core Business: LNG equipment, hydrogen storage, IOT development
• Growth Strategy: Overseas expansion, industrialization of hydrogen materials
• Earnings Forecast: CNY 1.92 (2015), CNY 2.47 (2016), CNY 3.32 (2017)
• Rating: BUY
• Potential Risks: LNG cost inefficiency, high gearing, hydrogen industrialization challenges

Guangdong Dahuanong Animal Health Products

• Sector: Agriculture
• Core Business: Animal healthcare products, veterinary vaccines
• Growth Strategy: Poultry farming methods, low-cost expansion
• Earnings Forecast: CNY 1.93 (2015), CNY 3.31 (2016), / (2017)
• Rating: BUY
• Potential Risks: Pork price volatility

China Union Holdings

• Sector: Real Estate
• Core Business: PTA, digital printing, real estate
• Growth Strategy: Business transformation, private placements
• Earnings Forecast: CNY 0.07 (2015), CNY 0.90 (2016), CNY 1.26 (2017)
• Rating: BUY
• Potential Risks: Private placement uncertainty, processing fee decline

Jiangsu Alcha Aluminum

• Sector: Non-ferrous Metal
• Core Business: Aluminum foil, coil, etc.
• Growth Strategy: Expansion into healthcare, biopharmaceuticals
• Earnings Forecast: CNY 0.18 (2015), CNY 0.32 (2016), CNY 0.39 (2017)
• Rating: OUTPERFORM
• Potential Risks: Slower business transformation, drop in aluminum processing fees

E-Food Group

• Sector: Food and Beverage
• Core Business: Inflight meals, railway catering, project investment
• Growth Strategy: Targeting high-end market, emission standard upgrades
• Earnings Forecast: CNY 2.24 (2015), CNY 3.64 (2016), CNY 4.24 (2017)
• Rating: BUY
• Potential Risks: Competition in travel services

Summary of Investment Recommendations

• BUY Recommendations:

  • Kingfa Sci & Tech
  • Guoxing Rongda Real Estate
  • Jiangling Motors
  • Juneyao Airlines
  • Macrolink Real Estate
  • China Union Holdings
  • Zhangjiagang Furui Special Equipment

• OUTPERFORM Recommendations:

  • Lander Sports Development
  • Shanghai Ganglian E-Commerce Holdings
  • Zhejiang Kaier New Materials
  • Guangdong Sky Dragon Printing Ink Group

Key Themes

• Growth Drivers: Expansion into new markets, M&A, overseas projects, and product diversification are key growth strategies.
• Valuation: Most companies are viewed as undervalued or have a high margin of safety, supporting investment recommendations.
• Sector Focus: Companies are spread across multiple sectors including Chemical Engineering, Real Estate, Construction, Agriculture, and Non-ferrous Metal.
• Risks: Project delays, market volatility, economic downturns, and M&A uncertainties are highlighted as potential risks across the recommendations.