20161226-兴业证券-Weekly_A-share_Market_Recommendations_13页_383kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document presents weekly investment recommendations for several A-share companies in China, focusing on their earnings forecasts, market positions, and potential risks. The recommendations are provided by the Industrial Securities Research Institute on December 26, 2016, and cover a range of sectors including Agriculture, Automobile, Hardware, Computer, Chemical Raw Materials, Construction, Fertilizer, and Banking.

Key Stock Recommendations

Main Investment Highlights

Yuan Longping High-tech Agriculture

• Earnings Drivers: Launch of popular new products.
• EPS Forecast: 0.48 (2016), 0.62 (2017), 0.84 (2018).
• Valuation: Current valuation is at historical low.
• Risks: Weather uncertainty, grain price fluctuations.

SAIC Motor

• Earnings Drivers: Industry recovery, sales of JV-brand vehicles and the Roewe RX 5 model.
• EPS Forecast: 2.9 (2016), 3.54 (2017), 4.02 (2018).
• Risks: Passenger vehicle industry downturn, weak new product sales.

Shenzhen Laibao Hi-tech

• Earnings Drivers: Growth in OGS touch panels, expansion into AIO PC touch panels.
• EPS Forecast: 0.28 (2016), 0.43 (2017), 0.56 (2018).
• Risks: Two-in-one laptop demand underperformance, touch technology roadmap revisions.

Hangzhou Everfine Photo E Info

• Earnings Drivers: Strategic expansion into AR, IoT, and big data; biometric recognition technology applications.
• EPS Forecast: 0.31 (2016), 0.87 (2017), 0.99 (2018).
• Risks: Intensifying competition, M&A failure.

Jiangling Motors

• Earnings Drivers: Clear business strategy, entry into niche markets, new product releases.
• EPS Forecast: 1.7 (2016), 3.27 (2017), 3.89 (2018).
• Risks: Sales of Everest model failing expectations.

Wanhua Chemical Group

• Earnings Drivers: Improved productivity, fast-growing business divisions.
• EPS Forecast: 1.16 (2016), 1.53 (2017), 1.99 (2018).
• Risks: Slow downstream demand recovery, raw material price volatility.

Jiangsu Changjiang Electronics Technology

• Earnings Drivers: Strategic partnerships, overseas orders, growth in semiconductor industry.
• EPS Forecast: 0.23 (2016), 0.73 (2017), 1.28 (2018).
• Risks: Slow new order growth, delays in overseas projects, fund collection issues.

Sino Great Wall

• Earnings Drivers: Leasing of idle properties.
• EPS Forecast: 0.32 (2016), 0.46 (2017), 0.64 (2018).
• Risks: Systematic banking industry risks.

Shandong Hualu Hengsheng Chemical

• Earnings Drivers: Technological strengths in gasification platforms, downstream product profitability.
• EPS Forecast: 0.7 (2016), 0.88 (2017), 1.22 (2018).
• Risks: Downstream demand weakness, raw material price fluctuations.

Bank of Nanjing

• Earnings Drivers: Fixed-income assets, strong creditworthiness of clients.
• EPS Forecast: 1.44 (2016), 1.74 (2017), / (2018).
• Risks: Systematic risks in the banking sector.

Key Information

• Rating Trends: Most companies are rated as STRONG BUY, while a few are rated as BUY.
• EPS Forecasts: All companies have EPS forecasts for 2016-2018, with growth expectations across sectors.
• Valuation: Some companies, such as Yuan Longping High-tech Agriculture and Sino Great Wall, are noted for being undervalued or at historical lows.
• Growth Drivers: Diversified across sectors, including product innovation, strategic partnerships, and industry recovery.
• Risks: Industry-specific risks such as demand fluctuations, competition, and raw material price volatility are highlighted.

Disclaimer and Legal Information

• The report is issued by Industrial Securities Research Institute.
• The views expressed are the analysts' personal opinions and subject to change.
• The report is for the use of the Company's clients only.
• Unauthorized distribution or use of the report is prohibited.
• The Company reserves all rights to the report and its contents.