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Weekly A-share Market Recommendations Summary

Core Content Overview

This document presents a list of top stock recommendations by the Industrial Securities Research Institute for the week of August 22, 2016. It includes detailed EPS forecasts, rating statuses, and investment highlights for each company, along with sector classifications and market data. The report emphasizes growth potential, strategic initiatives, and potential risks for each listed company.

Top Stock Recommendations

Key Investment Highlights

Beijing Homyear Capital Holdings (600240: SH)

• Sector: Diversified Finance
• Growth Potential: Engaged in medical supply chain finance with strong future prospects.
• Earnings: Expected to deliver stable earnings performance in 2016 and grow at a CAGR of 30%.
• Risks: Property sales may miss expectations, hospital operations could underperform, and medical sales might slump.

Jiangling Motors Corp (000550: SZ)

• Sector: Automobile
• Growth Potential: Strategy for business development in light truck and light bus markets.
• Earnings: Strong EPS forecast with growth from CNY 2.23 in 2016 to CNY 3.37 in 2018.
• Risks: Sales of Everest may not meet expectations.

China National Medicines Corp (600511: SH)

• Sector: Pharmaceuticals
• Growth Potential: Likely to engage in SOE reform, enjoys high market position.
• Earnings: EPS forecast from CNY 1.23 in 2016 to CNY 1.62 in 2018.
• Risks: Slower-than-expected asset integration and SOE reform progress.

Shenzhen Expressway (600548: SH)

• Sector: Expressway
• Growth Potential: Favorable conditions in the expressway sector, stable earnings from mature roads.
• Earnings: EPS forecast from CNY 0.92 in 2016 to CNY 1.13 in 2018.
• Risks: Systematic risk reducing traffic flow, lower-than-expected returns from newly-built expressways.

Tangshan Jidong Cement (000401: SZ)

• Sector: Cement
• Growth Potential: Expected to see cement prices stabilize and earnings turn positive in Q3 and Q4.
• Earnings: EPS forecast from CNY 0.04 in 2016 to CNY 0.75 in 2018.
• Risks: M&A may fail regulatory approval, regional demand recovery may be slow.

Guangdong Haid Group Company (002311: SZ)

• Sector: Fodder
• Growth Potential: Strong revenue and earnings growth despite industry slow-down.
• Earnings: EPS forecast from CNY 0.77 in 2016 to CNY 1.12 in 2018.
• Risks: Natural disasters, overseas political risks.

Jiangsu Changjiang Electronics Technology (600584: SH)

• Sector: IC
• Growth Potential: Leading in China's booming semiconductor industry, with expected 20% growth over five years.
• Earnings: EPS forecast from CNY 0.05 in 2016 to CNY 0.73 in 2018.
• Risks: Semiconductor industry downturn, integration with STATs ChipPAC may fail.

People.cn (603000: SH)

• Sector: Online Information Service
• Growth Potential: Key player in SOE reform, expanding into lottery business.
• Earnings: EPS forecast from CNY 0.24 in 2016 to CNY 0.27 in 2018.
• Risks: Slower online lottery development, obstacles in lottery business.

Zhejiang Reclaim Construction Group (002586: SZ)

• Sector: Water Conservancy
• Growth Potential: Expanding into culture and entertainment through M&A and PPP model.
• Earnings: EPS forecast from CNY 0.14 in 2016 to CNY 0.19 in 2018.
• Risks: Fewer new orders, slow progress in project development.

Shenzhen Soling Industrial (002766: SZ)

• Sector: IT Service
• Growth Potential: Growing through organic growth and M&A, improving product mix.
• Earnings: EPS forecast from CNY 0.43 in 2016 to CNY 0.69 in 2018.
• Risks: Business integration may fail, intense competition in IoV products, slow progress in smart driving.

Key Information

• Rating Status: Most recommendations are maintained, with a few revised upwards.
• EPS Forecasts: All companies have detailed EPS projections for 2016–2018.
• Market Data: Includes closing prices, total shares, shares outstanding, market cap, net assets, and BVPS for each company.
• Sector Classification: Companies are categorized into Diversified Finance, Automobile, Pharmaceuticals, Expressway, Cement, Fodder, IC, Online Information Service, and IT Service sectors.
• Investment Themes: Growth potential, strategic M&A, sector-specific opportunities, and SOE reform.
• Potential Risks: Vary by company, including operational, regulatory, and market-related risks.

Disclaimer and Information Disclosure

• The report is issued by Industrial Securities Co., Ltd., a qualified securities investment consulting institute.
• The report is intended solely for its clients and should not be used by unauthorized receivers.
• The views and recommendations are subject to change and not guaranteed.
• The company may take positions in and trade stocks of the companies mentioned, and the report may not be free of conflicts of interest.
• Clients are advised to consult independent investment consultants before making any investment decisions based on this report.