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Weekly A-share Market Recommendations Summary

Core Content Overview

This document provides weekly stock recommendations from the Industrial Securities Research Institute for June 27, 2016. It highlights key investment opportunities across various sectors, including Real Estate, Fodder, Chemical Raw Materials, Diversified Finance, and Mechanical Components. The report includes detailed EPS forecasts, company profiles, and market data for each recommended stock.

Top Stock Recommendations

Key Investment Highlights

Beijing Mainstreets Investment Group Corp (000609:SZ)

• Sector: Real Estate
• Highlights:
  • No interest-bearing liabilities, with over CNY 1.1 billion in cash and short-term WMPs.
  • Expanding into real estate development, special glasses for rail transportation, and medical services.
  • Strong optimism about future growth.
• Risk: Lower-than-expected property sales, slower-than-expected business transformation.

Liaoning Wellhope Agri-Tech JSC (603609:SZ)

• Sector: Fodder
• Highlights:
  • Leading fodder producer in northeast China, with strong business control.
  • Expectation of sow inventory rebound and increased demand in poultry and aquatic feed.
  • Long-term potential in land and grain assets.
• Risk: Epidemic and policy risks.

Shenzhen Comix Group (002301:SZ)

• Sector: Stationery
• Highlights:
  • Acquired FastMeeting, positioning itself in the video conference and SaaS industry.
  • Clear vision and strong commitment to e-commerce and Internet development.
  • Launch of ESOP shows management confidence.
• Risk: Management risk.

Shenzhen Zhongjin Lingnan Nonfemet (000060:SZ)

• Sector: Non-ferrous Metal
• Highlights:
  • Optimized tailings recycling, improving profitability.
  • Increased investment in new materials and supply chain finance.
  • Plans to develop an integrated non-ferrous metal service platform.
• Risk: Volatility in lead and zinc prices, slower product development.

Beingmate Baby & Child Food (002570.SZ)

• Sector: Food & Beverage
• Highlights:
  • Benefiting from the new infant formula registration policy.
  • Expected market consolidation and expansion due to the two-child policy.
  • EPS forecast shows gradual growth.
• Risk: Intensified competition, food safety issues.

Wanhua Chemical Group (600309:SH)

• Sector: Chemical Raw Materials
• Highlights:
  • Strong productivity and stable MDI supply.
  • Diversified into polyether, surface materials, ADI, and specialty amines.
  • Aiming to become a top chemical materials company.
• Risk: Slow recovery in downstream demand, raw material price volatility.

Jiangsu Changjiang Electronics Technology (600584:SH)

• Sector: IC
• Highlights:
  • Rapid recovery in profitability, with projected earnings over CNY 500 million.
  • Strategic partnership with SMIC and expansion into SiP manufacturing.
  • Expected to lead China's semiconductor growth.
• Risk: Semiconductor industry downturn, integration risks with STATs ChipPAC.

Shanghai M&G Stationery (603899:SH)

• Sector: Light Manufacturing
• Highlights:
  • Recognized long-term investment value with strong institutional holdings.
  • Growth in stationery business, with plans for new brands and M&A.
  • Potential for EPS growth and valuation increase.
• Risk: Management risk, slowdown in office supplies market.

Beijing Homyear Capital Holdings (600240:SH)

• Sector: Diversified Finance
• Highlights:
  • Transition into medical supply chain finance.
  • Strong real estate business with high profit margins.
  • Expected CAGR growth of 30%.
• Risk: Property sales, hospital operations, and financial operational risks.

Qingdao Haili Metal One (002537:SZ)

• Sector: Mechanical Component
• Highlights:
  • Engaged in household and auto parts, micro and special motors.
  • Facing an inflection point in business transformation.
  • Expected sales growth in 2016.
• Risk: Regulation, management, and market risks.

Key Risks Across All Recommendations

• Regulatory Risk: Especially in the food and beverage, semiconductor, and finance sectors.
• Market Risk: Slow business expansion, market saturation, or competition.
• Operational Risk: Integration challenges, production delays, or policy impacts.
• Financial Risk: Volatility in raw materials, property sales, and asset performance.

Disclaimer and Information Disclosure

• The report is issued by Industrial Securities Research Institute.
• The views in the report are based on the analysts' personal opinions and are subject to change.
• The report is intended for the Company's clients only and is not an invitation to trade.
• The Company reserves all rights to the report and prohibits unauthorized copying or redistribution.
• Clients are advised to consult independent investment consultants before making decisions based on the report.