20150720-兴业证券-Weekly_A-share_Market_Recommendations_17页_421kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document presents the weekly A-share market recommendations from the Industrial Securities Research Institute dated June 20, 2015. It includes stock picks across various sectors with detailed EPS forecasts, investment highlights, and potential risks for each company. The recommendations emphasize growth potential, market positioning, and strategic initiatives.

Top Stock Picks and Key Information

Main Investment Highlights

China Southern Air (600029: SH)

• Sector: Aviation
• Key Points:
  • High passenger transport rate and capacity utilization.
  • Expected profit of CNY 8 billion in 2015 with upward earnings trend.
  • High-beta airline stocks at reasonable valuations.
• Risks:
  • Macroeconomic downturn, oil price surge, exchange rate depreciation, high-speed train competition, and safety incidents.

Guangzhou Automobile Group (601238: SH)

• Sector: Automobile
• Key Points:
  • Diversified car product lines and recovery from bottom point.
  • Strategic transformation and expansion into environmental protection.
  • Strong growth potential in 2015-2016 with EPS forecasts of CNY 0.64, 1.04, and 1.20.
• Risks:
  • Economic slump, political factors, and underperformance in new car sales.

Kingfa Sci & Tech (600143: SH)

• Sector: Chemical Engineering
• Key Points:
  • Balanced strategy for growth in 2015.
  • Expansion into new chemical materials, including biodegradable plastics and carbon fiber composites.
  • EPS forecast of CNY 0.36, 0.46, and 0.60.
• Risks:
  • Delays in fund-raising projects and new materials marketing.

Shenzhen World Union Properties (002285: SZ)

• Sector: Real Estate
• Key Points:
  • Accelerating revitalization of commercial properties.
  • Leveraging market data for integrated services.
  • EPS forecast of CNY 0.57, 0.70, and 0.90.
• Risks:
  • Property sales dropping faster than expected.

Guoxing Rongda Real Estate (000838: SZ)

• Sector: Real Estate
• Key Points:
  • Strong support from Chongqing Casin Group.
  • High margin of safety with RNAV at CNY 10 per share.
  • EPS forecast of CNY 0.60, 0.75, and 0.86.
• Risks:
  • Private placement implementation falling short.

Shandong Meichen Science & Technology (300237: SZ)

• Sector: Construction
• Key Points:
  • Growth from auto parts and garden businesses post-acquisition.
  • Strategic transformation and M&A activities.
  • EPS forecast of CNY 0.72, 1.18, and 1.57.
• Risks:
  • M&A not meeting expectations and new orders falling short.

Shenzhen Victor Onward Textile (000018: SZ)

• Sector: Conglomerates
• Key Points:
  • Asset injection by Sino Great Wall International.
  • Expansion into overseas contracts and 'One Belt One Road' projects.
  • EPS forecast of CNY 0.88, 1.40, and 1.84.
• Risks:
  • Overseas order fulfillment not meeting expectations and currency exchange losses.

Guangdong Dahuanong Animal Health (300186: SZ)

• Sector: Agriculture
• Key Points:
  • Strong growth in poultry farming with low cost.
  • Undervalued stock with high margin of safety.
  • EPS forecast of CNY 1.93, 3.31, and /.
• Risks:
  • Pork price volatility.

China United Travel (600358: SH)

• Sector: Leisure Services
• Key Points:
  • Focus on outdoor culture and recreation.
  • Strategic partnerships in cultural industries.
  • EPS forecast of CNY 0.27, 0.27, and 0.33.
• Risks:
  • Project delays and systemic risks.

Lander Real Estate (000558: SZ)

• Sector: Real Estate
• Key Points:
  • Expansion into sports industry with new subsidiaries and platform development.
  • High market cap with strong growth potential.
• Risks:
  • Project delays.

Macrolink Real Estate (000620: SZ)

• Sector: Real Estate
• Key Points:
  • Strong land resources and regional development advantages.
  • Transformation into cultural tourism and financial industry expansion.
  • EPS forecast of CNY 0.35, 0.40, and 0.47.
• Risks:
  • Systematic risks in real estate.

Yunnan Lincang Xinyuan Germanium (002428: SZ)

• Sector: Non-ferrous Metal
• Key Points:
  • Strategic metal with growing demand.
  • Expansion into military and aerospace sectors.
  • EPS forecast of CNY 0.21, 0.25, and 0.33.
• Risks:
  • Decline in demand for defense and aerospace products.
  • Sharp drops in germanium prices.

Zhejiang Kaier New Materials (300234: SZ)

• Sector: Construction Material
• Key Points:
  • Strong position in vitreous enamel cladding panel market.
  • Targeting energy-saving and environmental protection sectors.
  • EPS forecast of CNY 0.53, 0.70, and 0.92.
• Risks:
  • Urban rail construction delays.
  • New product marketing underperformance.

Key Risks Across All Companies

• Macroeconomic downturn
• Oil price surges
• Exchange rate depreciation
• Economic slump
• Political factors
• Project delays
• New product marketing failure
• M&A underperformance
• Sharp steel price volatility
• Systemic real estate risks
• Pork price volatility
• Decline in germanium prices

Analyst Certification

• The Industrial Securities Research Institute is certified by the Securities Association of China as a professional securities investment consultant.