20160425-法国兴业证券_香港_-Weekly_A-share_Market_Recommendations_13页_387kb

Weekly A-share Market Recommendations Summary

Core Content

This document provides a detailed analysis of several A-share companies, offering investment recommendations, EPS forecasts, and market data as of April 25, 2016. The focus is on companies across various sectors including Light Manufacturing, Mechanical Components, Pharmaceutical Commerce, Property Development, Auto Components, Paper Making, and Banking. Each company's performance, growth prospects, and associated risks are outlined.

Main Companies and Their Recommendations

Main Points and Key Information

Shanghai M&G Stationery

• Investment Highlights:
  • Recognized by the market with strong institutional investor support.
  • Expected to maintain over 20% earnings growth.
  • Focus on expanding 'Morning Glory Fine Stationary Shop' and 'Morning Glory Colipu' online sales channels.
  • Potential to become a safe haven in a weak market.
• Risks: Management risk, slowdown in office supplies market.
• EPS Forecast: CNY 1.01 (2015), CNY 1.22 (2016), CNY 1.47 (2017).
• Market Data: Closing price CNY 36.15, Market Cap CNY 16,629 million, BVPS CNY 5.03.

Anhui Yingliu Electromechanical

• Investment Highlights:
  • Strong growth in nuclear power and military defense markets.
  • 30% revenue and 40% net profit from nuclear power business.
  • Expected to reach CNY 500 million in combined sales of nuclear pumps and neutron absorbing materials.
• Risks: Natural disaster, overseas political risks.
• EPS Forecast: CNY 0.26 (2015), CNY 0.66 (2016), CNY 0.98 (2017).
• Market Data: Closing price CNY 22.52, Market Cap CNY 9,008.23 million, BVPS CNY 4.67.

Guangdong Haid Group Company

• Investment Highlights:
  • Fast revenue and earnings growth despite industry slowdown.
  • Strong purchasing and formula development capabilities.
  • Strategic acquisitions and M&A plans.
• Risks: Natural disaster, overseas political risks.
• EPS Forecast: CNY 0.51 (2015), CNY 0.77 (2016), CNY 1.02 (2017).
• Market Data: Closing price CNY 16.22, Market Cap CNY 24,926.38 million, BVPS CNY 3.28.

China National Accord Medicines

• Investment Highlights:
  • Leading pharmaceuticals merchant in Guangdong and Guangxi.
  • Diversified business development in Smart City, Hospital Investment, and Financial Sector.
  • EPS forecast implies 56x and 20x P/E ratios for 2016 and 2017.
• Risks: Slower commercial business development, assets restructuring not meeting expectations.
• EPS Forecast: CNY 2.10 (2015), CNY 2.44 (2016), CNY 2.87 (2017).
• Market Data: Closing price CNY 66.91, Market Cap CNY 24,263.70 million, BVPS CNY 15.59.

Tianjin Songjiang

• Investment Highlights:
  • Real estate developer with strong financial foundation.
  • Plans to expand into the Internet finance sector through M&A.
• Risks: Slower-than-expected progress in diverse business development, regulatory risks.
• EPS Forecast: CNY 0.11 (2016), CNY 0.31 (2017).
• Market Data: Closing price CNY 5.67, Market Cap CNY 5,304.24 million, BVPS CNY 2.01.

Hangzhou Sunrise Technology

• Investment Highlights:
  • Leading supplier of energy metering instruments.
  • Strong growth potential in NEV industry and public energy measurement.
  • Plans to merge with Union Mobile Pay for expansion into Internet finance.
• Risks: Regulation, management, policy, and market risks.
• EPS Forecast: CNY 0.98 (2015), CNY 0.77 (2016), CNY 0.90 (2017).
• Market Data: Closing price CNY 21.35, Market Cap CNY 7,743.16 million, BVPS CNY 2.98.

Qingdao Haili Metal One

• Investment Highlights:
  • Strong position in auto electronics and household appliance parts.
  • Diversified product range and strong market presence.
• Risks: Continued economic downturn affecting leasing business.
• EPS Forecast: CNY 0.11 (2015), CNY 0.52 (2016), CNY 0.68 (2017).
• Market Data: Closing price CNY 24.85, Market Cap CNY 7,485.57 million, BVPS CNY 4.89.

Ningbo Huaxiang Electronic

• Investment Highlights:
  • Asset injection improved financial structure and net profit.
  • Expected to increase net profit to CNY 600 million – CNY 800 million.
  • Strong position in automobile rearview mirror production.
• Risks: Continued loss from German subsidiary, asset injection approval uncertainty.
• EPS Forecast: CNY 0.42 (2015), CNY 0.98 (2016), CNY 1.25 (2017).
• Market Data: Closing price CNY 16.07, Market Cap CNY 8,517.86 million, BVPS CNY 8.21.

Shandong Chenming Paper

• Investment Highlights:
  • Strong growth in paper-making and related industries.
  • SOE reform and cost reduction strategies are expected to boost earnings.
  • Leasing business is a key driver of earnings.
• Risks: Slower SOE reform progress, economic downturn affecting leasing earnings.
• EPS Forecast: CNY 0.52 (2015), CNY 0.68 (2016), CNY 0.87 (2017).
• Market Data: Closing price CNY 8.10, Market Cap CNY 15,684.88 million, BVPS CNY 8.71.

Bank of Nanjing

• Investment Highlights:
  • Benefits from the downward cycle in interest rates.
  • Strong creditworthiness of clients (local government and SOEs).
• Risks: Systematic risk in the banking industry.
• EPS Forecast: CNY 2.1 (2015), CNY 2.5 (2016), CNY 2.8 (2017).
• Market Data: Closing price CNY 15.87, Market Cap CNY 53,417.71 million, BVPS CNY 13.16.

Disclaimer and Legal Information

• The report is issued by Industrial Securities Research Institute and is based on public information.
• The views expressed are subject to change and the company has no obligation to update them.
• The report is intended for the company's clients only.
• Unauthorized redistribution or use of the report is prohibited.
• The company may have conflicts of interest and the report should not be the sole basis for investment decisions.