20160804-兴业证券-A-Share_Daily_Express_12页_1002kb

Summary of Industrial Securities Co., Ltd. Report

Core Content

Industrial Securities Co., Ltd. provides a comprehensive market analysis and company-specific insights for August 1, 2016. The report includes key financial data, market indices, sector performance, daily headlines, company news, and investment recommendations.

Market Indices

• The total market volume was CNY 405 billion, an increase of 6.0% from the previous day.
• Winners outnumbered losers by 1777-to-763.

Sector Review

Winners

• Real Estate:
  • China Vanke (000002.SZ): +10.01%
  • China Calxon Group (000918.SZ): +10.01%
  • Langfang Development Co. (600149.SH): +5.01%
• Computer:
  • Shenzhen Sunline Tech (300348.SZ): +10.01%
  • Yonyou Network Technology (600588.SH): +8.36%
• Electronic Components:
  • Beijing Zhong Ke San Huan High-Tech (000970.SZ): +5.91%
  • Jiangsu Changjiang Electronics Technology (600584.SH): +5.07%

Losers

• Banking:
  • Ping An Bank (000001.SZ): -2.07%
  • Bank of China (601988.SH): -0.60%
• Home Appliance:
  • Anhui Lucky Health Technology Co. (300247.SZ): -3.51%
  • Qingdao Haier (600690.SH): -1.89%
• Coal:
  • Sundiro Holding Co. (000571.SZ): -2.84%
  • Jizhong Energy Resources (000937.SZ): -2.02%

Daily Headlines

• The PBOC reaffirms a prudent monetary policy and aims to maintain liquidity.
• China encourages foreign investment in domestic petrochemical mergers and restructuring.
• The completion of the Didi/Uber deal is expected to have significant market impact.
• Chinese regulators are tightening rules on share listing sponsors on NEEQ.
• Shanghai Film Co. plans to sell 93.5 million shares in its IPO.
• Baidu introduces an augmented reality platform called DuSee.

Latest Company News

• Air China (601111.SH): Approved for 12 billion yuan bond sale.
• China Fortune Land (600340.SH): Plans to issue up to 15 billion yuan in bonds.
• China Vanke (000002.SZ): July contract sales amounted to 27.4 billion yuan.
• Chongqing Iron (601005.SH): Ends non-public issue of A shares.
• Everbright Securities (601788.SH): Said to set terms for 1.2 billion HK share sale.
• Guotai Junan Securities (601211.SH): Joins IETA as the first Chinese brokerage.
• Midea (000333.SZ): May expand Kuka investor base, according to its German CEO.
• Shanghai Film (601595.SH): Plans to raise 953 million yuan in Shanghai IPO.
• Sinopec (600028.SH): Pipeline sale could unlock $6 billion of overlooked value.
• Xining Steel (600117.SH): Scraps debt restructuring plan due to unmet conditions.

Investment Recommendations

Fujian Sunner Development Co., Ltd. (002299.SZ)

• Rating: Buy (Maintained)
• Key Financials:
  • FY 2015 Revenue: CNY 6940 Mn
  • FY 2016E Revenue: CNY 10121 Mn (+45.8% YoY)
  • FY 2017E Revenue: CNY 12158 Mn (+20.1% YoY)
  • FY 2018E Revenue: CNY 11550 Mn (-5.0% YoY)
  • FY 2016E Net Profit: CNY 1397 Mn (+260.2% YoY)
  • FY 2017E Net Profit: CNY 2385 Mn (+70.7% YoY)
  • FY 2018E Net Profit: CNY 2098 Mn (-12.0% YoY)
• EPS Forecast: CNY 1.26 (2016E), CNY 2.15 (2017E), CNY 1.89 (2018E)
• P/E Ratios: 19x (2016E), 11x (2017E), 12.7x (2018E)
• Potential Risks: Unpredicted epidemic disease, unfavorable grain policy

Jincheng Paper Co., Ltd. (000820.SZ)

• Rating: Outperform (Maintained)
• Key Financials:
  • FY 2015 Revenue: CNY 655 Mn
  • FY 2016E Revenue: CNY 300 Mn
  • FY 2017E Revenue: CNY 400 Mn
  • FY 2018E Revenue: CNY 500 Mn
  • FY 2015 Net Profit: CNY 171 Mn
  • FY 2016E Net Profit: CNY 300 Mn
  • FY 2017E Net Profit: CNY 400 Mn
  • FY 2018E Net Profit: CNY 500 Mn
• Acquisition Details: Jiangsu Province Metallurgical Design Institute will restructure with Jincheng Paper, with an acquisition price of 11.5x total equity.
• Orders in Hand: Over CNY 10 billion
• P/E Ratios: 42x (2016E), 31x (2017E)
• Potential Risks: Unexpected drop in metal prices, slower-than-expected program progress

Jsti Group (300284.SZ)

• Rating: Outperform (Maintained)
• Key Financials:
  • FY 2015 Revenue: CNY 2563 Mn
  • FY 2016E Revenue: CNY 3065 Mn (+19.6% YoY)
  • FY 2017E Revenue: CNY 3525 Mn (+15.0% YoY)
  • FY 2018E Revenue: CNY 3948 Mn (+12.0% YoY)
  • FY 2015 Net Profit: CNY 311 Mn
  • FY 2016E Net Profit: CNY 413 Mn (+32.8% YoY)
  • FY 2017E Net Profit: CNY 506 Mn (+22.7% YoY)
  • FY 2018E Net Profit: CNY 578 Mn (+14.3% YoY)
• EPS Forecast: CNY 0.74 (2016E), CNY 0.91 (2017E), CNY 1.04 (2018E)
• P/E Ratios: 26x (2016E), 21x (2017E), 19x (2018E)
• Potential Risks: Regulatory approval uncertainty, dilutive impact of equity offerings

Key Data (Fujian Sunner Development Co., Ltd.)

• Closing Price: 30.15
• Total Shares (Mn): 1110.90
• Shares Outstanding (Mn): 899.81
• Market Cap (CNY/Mn): 33493.64
• Market Float (CNY/Mn): 27129.41
• Net Assets (CNY/Mn): 5474.96
• Total Assets (CNY/Mn): 11292.96
• BVPS: 4.93

Key Financial Ratios (Fujian Sunner Development Co., Ltd.)

Key Data (Jincheng Paper Co., Ltd.)

• Closing Price: 19.9
• Total Shares (Mn): 287.8
• Market Cap (CNY/Mn): 5716.4
• BVPS: 0.9

Key Data (Jsti Group)

• Closing Price: 19.49
• Total Shares (Mn): 554.95
• Shares Outstanding (Mn): 332.83
• Market Cap (CNY/Mn): 10815.98
• Market Float (CNY/Mn): 6486.86
• Net Assets (CNY/Mn): 2703.1
• Total Assets (CNY/Mn): 5554.87
• BVPS: 4.87

Analysts

• Fujian Sunner Development Co., Ltd.: CHEN Jiao (chenjiao86@xyzq.com.cn)
• Jincheng Paper Co., Ltd.: WANG Yang (wang_yang@xyzq.com.cn)
• Jsti Group: MENG Jie (mengjie@xyzq.com.cn), FANG Dalei (fangdalei@xyzq.com.cn)

Translators

• Fujian Sunner Development Co., Ltd.: PAN Mengchen (panmengchen@xyzq.com.cn)
• Jincheng Paper Co., Ltd.: LU Yang (luyang@xyzq.com.cn)
• Jsti Group: LU Yang (luyang@xyzq.com.cn)

Conclusion

The report highlights strong performance in the real estate and computer sectors, with notable gains for companies like China Vanke and Shenzhen Sunline Tech. It also discusses the restructuring plans and investment potential of Jincheng Paper and Jsti Group, with positive outlooks and maintained investment ratings. Key risks are identified for each company, and financial data is provided for valuation and performance analysis.