20160725-兴业证券-Weekly_A-share_Market_Recommendations_13页_393kb

Weekly A-share Market Recommendations Summary

Core Content Overview

This document outlines the weekly stock recommendations from the Industrial Securities Research Institute for July 25, 2016, focusing on several key sectors including Real Estate, Pharmaceuticals, Non-ferrous Metals, Cement, Fodder, Environmental Protection, and Mechanical Components. Each company receives an EPS forecast and a rating, along with investment highlights and potential risks.

Top Stock Recommendations

Main Points and Key Information

Beijing Mainstreets Investment Group Corp (000609:SZ)

• Sector: Real Estate
• Investment Highlights:
  • No interest-bearing liabilities, with over CNY 1.1 billion in cash and short-term WMPs.
  • Diversifying into real estate development, special rail glasses, and medical services.
  • EPS forecasts: CNY 0.25 (2016), CNY 0.29 (2017), CNY 0.35 (2018).
• Potential Risks:
  • Lower-than-expected property sales.
  • Slower-than-expected business transformation.

Shanghai Runda Medical Technology (603108:SH)

• Sector: Medical Service
• Investment Highlights:
  • Provides IVD products and technical support.
  • Manages over 100 hospitals and explores partnerships.
  • EPS forecasts: CNY 1.3 (2016), CNY 1.6 (2017), CNY 1.99 (2018).
• Potential Risks:
  • Slower-than-expected development of clinical lab businesses.
  • Volatility in company valuation.

Shanghai Pharmaceuticals Holding (601607:SH)

• Sector: Pharmaceuticals
• Investment Highlights:
  • Leading pharmaceutical company with strong brand products.
  • Benefits from pharmaceutical reform, with plans for R&D and M&A.
  • EPS forecasts: CNY 1.21 (2016), CNY 1.35 (2017), CNY 1.52 (2018).
• Potential Risks:
  • Challenges in transforming into an "Internet Plus" company.
  • Slower M&A progress.
  • Incentive reforms may not proceed smoothly.

Shenzhen Zhongjin Lingnan Nonfemet (000060:SZ)

• Sector: Non-ferrous Metal
• Investment Highlights:
  • Optimized tailings utilization through Fankou Lead-Zinc project.
  • Expanding into new materials and supply chain finance.
  • EPS forecasts: CNY 0.32 (2016), CNY 0.55 (2017).
• Potential Risks:
  • Sharp volatility in lead and zinc prices.
  • Slower-than-expected product development.

Tangshan Jidong Cement (000401:SZ)

• Sector: Cement
• Investment Highlights:
  • Expected cement price bottoming out soon.
  • Strong quarterly earnings growth anticipated in Q3 and Q4.
  • EPS forecasts: CNY 0.04 (2016), CNY 0.61 (2017), CNY 0.75 (2018).
• Potential Risks:
  • M&A may fail to gain regulatory approval.
  • Regional demand recovery may be slower than expected.

Guangdong Haid Group Company (002311:SZ)

• Sector: Fodder
• Investment Highlights:
  • Maintains fast revenue and earnings growth despite industry slowdown.
  • Strong purchasing and marketing capabilities.
  • EPS forecasts: CNY 0.77 (2016), CNY 1.01 (2017), CNY 1.12 (2018).
• Potential Risks:
  • Natural disasters.
  • Overseas political risks.

Jiangsu Changjiang Electronics Technology (600584:SH)

• Sector: IC
• Investment Highlights:
  • Profitability recovery faster than expected.
  • Partnership with SMIC and expansion into SiP manufacturing.
  • EPS forecasts: CNY 0.05 (2016), CNY 0.23 (2017), CNY 0.73 (2018).
• Potential Risks:
  • Semiconductor industry downturn.
  • Integration with STATs ChipPAC may not meet expectations.

Guangzhou Devotion Thermal Technology (300335:SZ)

• Sector: Environmental Protection Engineering and Services
• Investment Highlights:
  • Transitioned to a clean energy integrated service provider.
  • Launching smart furniture and energy management platform.
  • EPS forecasts: CNY 0.39 (2016), CNY 0.51 (2017), CNY 0.66 (2018).
• Potential Risks:
  • Slower progress in core business.
  • Business integration may not proceed as expected.

People.cn (603000:SH)

• Sector: Online Information Service
• Investment Highlights:
  • Key player in SOE reform and online lottery industry.
  • Advertising, mobile value-added services, and information services are expected to grow.
  • EPS forecasts: CNY 0.24 (2016), CNY 0.25 (2017), CNY 0.27 (2018).
• Potential Risks:
  • Slower development of online lottery industry.
  • Obstacles in lottery business.

Qingdao Haili Metal One (002537:SZ)

• Sector: Mechanical Component
• Investment Highlights:
  • Diversified into household appliance parts, auto parts, and motors.
  • EPS forecasts: CNY 0.52 (2016), CNY 0.68 (2017), CNY 0.83 (2018).
• Potential Risks:
  • Regulation, management, policy, and market risks.

Disclaimer and Information Disclosure

• Industrial Securities Research Institute provides recommendations based on its analysis and research.
• The report is intended for use by the Company's clients only.
• The views expressed are subject to change and not guaranteed.
• The Company reserves all rights to the report and prohibits unauthorized redistribution.
• Clients are advised to make independent investment decisions and consider potential conflicts of interest.