20160711-兴业证券-Weekly_A-share_Market_Recommendations_13页_383kb

Weekly A-share Market Recommendations Summary

Core Content

This document provides weekly stock recommendations from the Industrial Securities Research Institute for July 11, 2016, highlighting key investment opportunities across various sectors. The recommendations are based on EPS forecasts, company growth prospects, and risk assessments.

Main Stock Recommendations

1. Beijing Mainstreets Investment Group Corp (000609: SZ)

• Sector: Real Estate
• Rating: OUTPERFORM (Maintained)
• EPS Forecast:
  • 2016: CNY 0.25
  • 2017: CNY 0.29
  • 2018: CNY 0.35
• Investment Highlights:
  • No interest-bearing liabilities, indicating a strong financial position.
  • Expanding into real estate development and fast food industry.
  • High margin of safety with over CNY 1.1 billion in cash and short-term WMPs.
• Potential Risk:
  • Lower-than-expected property sales
  • Slower-than-expected business transformation

2. Shanghai Runda Medical Technology (603108: SH)

• Sector: Medical Service
• Rating: OUTPERFORM (Maintained)
• EPS Forecast:
  • 2016: CNY 1.3
  • 2017: CNY 1.6
  • 2018: CNY 1.99
• Investment Highlights:
  • Strong position in IVD industry with negotiation power.
  • Manages over 100 hospitals directly and indirectly.
  • Announced private placement and ESOP to support growth.
• Potential Risk:
  • Slower development of clinical laboratory businesses
  • Volatility in company valuation

3. Shenzhen Comix Group (002301: SZ)

• Sector: Stationery
• Rating: OUTPERFORM (Maintained)
• EPS Forecast:
  • 2016: CNY 0.32
  • 2017: CNY 0.43
  • 2018: CNY 0.61
• Investment Highlights:
  • Acquired FastMeeting, expanding into video conference industry.
  • Clear vision and strong commitment to e-commerce platform development.
  • ESOP indicates management confidence in long-term prospects.
• Potential Risk:
  • Management risk

4. Shenzhen Zhongjin Lingnan Nonfemet (000060: SZ)

• Sector: Non-ferrous Metal
• Rating: OUTPERFORM (Maintained)
• EPS Forecast:
  • 2016: CNY 0.32
  • 2017: CNY 0.55
  • 2018: Not Provided
• Investment Highlights:
  • Optimized tailings recycling, improving profitability.
  • Increased investment in new materials and supply chain finance.
  • Plans to build an integrated non-ferrous metal service platform.
• Potential Risk:
  • Sharp volatility of lead and zinc prices
  • Slower-than-expected product development

5. Shandong Longquan Pipeline Engineering (002671: SZ)

• Sector: Pipe
• Rating: OUTPERFORM (Maintained)
• EPS Forecast:
  • 2016: CNY 0.43
  • 2017: CNY 0.51
  • 2018: CNY 0.61
• Investment Highlights:
  • Leading in PCCP/petrochemical/nuclear energy pipe market.
  • Strong upside potential with PCCP pipe bid and nuclear projects.
  • Stable cash flow and potential for M&A.
• Potential Risk:
  • Persistently low orders
  • Slower-than-expected order implementation

6. Guangdong Haid Group Company (002311: SZ)

• Sector: Fodder
• Rating: BUY (Maintained)
• EPS Forecast:
  • 2016: CNY 0.77
  • 2017: CNY 1.01
  • 2018: CNY 1.12
• Investment Highlights:
  • Fast revenue and earnings growth despite industry slowdown.
  • Strong purchasing, formula development, and marketing capabilities.
  • Undervalued compared to peers, with potential for strategic acquisitions.
• Potential Risk:
  • Natural disasters
  • Overseas political risks

7. Jiangsu Changjiang Electronics Technology (600584: SH)

• Sector: IC
• Rating: BUY (Revised Up)
• EPS Forecast:
  • 2016: CNY 0.05
  • 2017: CNY 0.23
  • 2018: CNY 0.73
• Investment Highlights:
  • Strong recovery in profitability, expected to exceed CNY 500 million.
  • SMIC's ownership enhances industry resource sharing.
  • Expected to lead China's semiconductor growth with 20% annual growth.
• Potential Risk:
  • Semiconductor industry downturn
  • Integration with STATs ChipPAC may not meet expectations

8. Guangzhou Devotion Thermal Technology (300335: SZ)

• Sector: Environmental Engineering and Services
• Rating: OUTPERFORM (Maintained)
• EPS Forecast:
  • 2016: CNY 0.39
  • 2017: CNY 0.51
  • 2018: CNY 0.66
• Investment Highlights:
  • Transitioned to clean energy integrated service provider.
  • Facing inflection point with progress in business transformation.
  • Plans to expand into smart furniture and energy management.
• Potential Risk:
  • Slower progress in core business
  • Slower business integration

9. Guangzhou Zhiguang Electric (002169: SZ)

• Sector: Industrial Automation
• Rating: OUTPERFORM (Maintained)
• EPS Forecast:
  • 2016: CNY 0.53
  • 2017: CNY 0.73
  • 2018: CNY 0.93
• Investment Highlights:
  • Transitioning to a power utilization service provider.
  • Optimized operations with a professional electrician team.
  • Expanding into electricity sales with Guangdong market reform.
• Potential Risk:
  • Slower expansion of power utilization services
  • Delayed payment collection for energy-saving services

10. Qingdao Haili Metal One (002537: SZ)

• Sector: Mechanical Component
• Rating: OUTPERFORM (Maintained)
• EPS Forecast:
  • 2016: CNY 0.52
  • 2017: CNY 0.68
  • 2018: CNY 0.83
• Investment Highlights:
  • Active in household appliance parts, auto parts, and motors.
  • Facing an inflection point in business transition.
  • Expected to benefit from NEV industry growth.
• Potential Risk:
  • Regulation risk
  • Management risk
  • Policy risk
  • Market risk

Key Information

• The report includes EPS forecasts for each recommended company from 2016 to 2018.
• Each company's sector and rating are clearly stated.
• Market data such as closing price, total shares, shares outstanding, and BVPS are provided.
• Investment highlights focus on growth potential, business expansion, and strategic initiatives.
• Potential risks are outlined for each stock, including market, operational, and regulatory challenges.
• The Industrial Securities Research Institute maintains its recommendations based on thorough analysis and research.

Disclaimer and Legal Information

• The report is issued by Industrial Securities Co., Ltd., a qualified securities investment consulting institute.
• It is intended for clients only and not for unauthorized recipients.
• The views in the report may change and are not guaranteed.
• The report is based on public information and the Company does not warrant its accuracy or completeness.
• The Company may hold positions in the recommended stocks and has no obligation to update the report.
• Unauthorized copying or redistribution of the report is prohibited without prior written consent.