30-day research report selected 10 stocks to break out

Li Peng shares: Neglected low valuation PPP garden stocks

Source: Haitong Securities 600837

1. The old brand of anti-counterfeit bottle caps, the new value of the garden industry. The company's traditional main business is the production and sales of aluminum plate composite anti-counterfeiting printing and anti-counterfeit caps. In 2014, the company acquired 100% equity of Huayu Garden in the form of “share + cash”. Huayu Garden Headquarters is located in Chongqing and has been committed since its inception. In the deep-growing market in the southwest region, the 16-17 year commitment to deduct non-net profit is not less than 169 million and 198 million, the net profit in the first half of the year was 65.770 million yuan, an increase of 30.76%, we expect to complete the 169 million commitment in 16 years. Net profit.

2. Neglected low valuation PPP garden stocks. The company's BT project has rich experience in construction. The 2012/2013 BT project construction revenue accounted for 32.47% and 33.82% respectively. At the end of 2015, the company's BT project accounted for 926 million long-term receivables, much higher than the 290 million at the end of 2014. Since 2015, the company has won a total of 1.377 billion PPP projects. We believe that PPP will become the main mode of infrastructure construction in the future. The company has outstanding first-mover advantages and good government relations. At the same time, relying on the financing platform of listed companies, PPP business is expected to continue to exert its strength.

3. The main business of traditional packaging is expected to pick up and actively deploy emerging industries. Including "caps + two-dimensional code" to seek Internet +, increase capital to participate in Guangzhou Baironggao, layout sports consulting services.

4. The non-public offering was approved and the funds raised were added to the PPP project. In the first half of 2016, the non-public issuance plan was announced. The issue price was not less than 5.20 yuan, the lock-up period was 1 year, and the fund raised was 903 million, of which 620 million was used for the construction of two PPP projects.

Estimated EPS for 2016-2017 is 0.25 yuan and 0.32 yuan respectively (not considering this additional issue for the time being, considering: 1) the company's market value is small, the valuation is lower than the industry comparable company; 2) significant benefit PPP model promotion, performance elasticity, Give a "Buy" rating.

Hejing Technology: Extend the application field of controllers and deepen the layout of smart home industry

Source: Everbright Securities

Event: The company announced on August 26, 2016 that it plans to raise funds of no more than 1.52 billion yuan through non-public offering of shares. The number of issued shares does not exceed 38.88 million shares, and the issue price is 39.02 yuan/share. The funds raised are used for “an annual output of 3.1 million sets of industrial and automotive intelligent controllers”, “an annual output of 2.6 million sets of access and smart home terminal equipment”, “intelligent terminal promotion and value-added service R&D platform construction” and other three projects.

Comments: 1) The layout of smart homes is deepened. In this fundraising project, the first is to invest 276 million yuan for the annual production of 2.6 million sets of access and smart home terminal equipment projects, improve the company's production capacity, and form synergy with Australia Resources Information; second, invest 816 million yuan to build value-added services. The R&D platform will freely upgrade 2 million home smart terminals. The company actively expands the smart home business, and actively promotes the home intelligent terminal to master the entrance of the home Internet ecosystem, and builds a complete ecological chain of family-centered intelligent hardware, platform operation and content provision. 2) Expand industrial and automotive intelligent controller business and increase new profit growth points. The 415 million of the raised funds will be used to invest in the production of industrial and automotive intelligent controllers, comprehensively promote the expansion of the main business in the high-end field, and consolidate the leading position in the industry. 3) The chairman of the board of directors subscribed in a large amount to show confidence. Chairman Chen Bolin intends to subscribe for 79.6% of the shares of this non-public offering, with a subscription amount of 1.21 billion yuan.

Multi-field goes hand in hand, performance is expected to grow substantially

1) The traditional main business intelligent controller expands production capacity and continues to penetrate the high-end market. The future gross profit margin will gradually increase and the profitability will be further enhanced. 2) The acquisition and integration of Zhongke Xinrui and Aurun Information has been completed, and the smart life layout has been improved. The standard qualification is excellent, and it is expected to exceed the promised performance in 16 years. 3) Three times of capital increase Huanyu Wanwei, as the country's largest interactive platform for early childhood education, will enjoy the high-speed development dividend of the industry. The annual probability of achieving the coverage of 60,000 kindergartens is huge, and the profit margin is huge.

Venus Star: New measures for security products and industrial layout

Source: Haitong Securities

In the first half of 2016, the company achieved operating income of 570 million yuan, a year-on-year increase of 20%, and the net profit attributable to shareholders of listed companies was 5.7 million yuan, maintaining profitability in the middle of the year.

Extension + cooperation a series of industrial layout

(1) Initiated the acquisition of Saibo Xing'an, deepened the product line in the field of security encryption, and focused on the synergy between the military customers and the company's products; (2) initiated the acquisition of the remaining 85% stake in Chuantuo. The latter has strong accumulation in data leakage prevention, terminal security, mobile applications, databases, etc., and has a strong technical background in machine learning algorithms; (3) Cooperating with Beixinyuan 300352 to form a joint venture company - Chenxin Lingchuang, After 15 years of cooperation with Tencent to release "Yunzi Trust", another enhanced layout for enterprise-class terminal security.

New measures for security products continue

The company's FlowEye security domain flow monitoring system implements the idea of ​​active security based on the normal network behavior order, and is widely used in telecommunications, finance, energy, public security and other fields. The new generation log analysis and audit platform TSOC-SA3 adopts the distributed non-relationship of independent property rights. The database database CupidDB technology effectively handles the log big data problem; the goggles vulnerability scanning and management system V6.0 - the industrial control system special version successfully applied for the industrial security product qualification.

We are optimistic about the development trend of the network security industry, the company's leading industry position, and the expansion of new areas such as cloud security and big data security, giving a Buy rating.

Yongding shares: the core of the cash acquisition, the strong in the era of big data

Source: Soochow Securities

Event: The company issued an announcement. The company intends to acquire 21% equity of Beijing Yongding Zhiyuan Network: Luotong Technology Co., Ltd. (hereinafter referred to as “Yongding Zhiyuan”) in cash. After the completion of the acquisition, the company will increase capital by means of monetary means. After that, the company will hold a 43% stake in Yongding Zhiyuan and become its largest shareholder and obtain actual control.

Cash acquisition of Yongding Zhiyuan, simple and violently enter the big data market: the acquisition of the standard Yongding Zhiyuan is committed to the telecommunications field of signal acquisition, DPI, network security, big data applications and other software development, solutions and services, is China Telecom and one of the core partners of China Unicom 600050. Yongding Zhiyuan's products are located in the most basic layer of “data collection – data aggregation – data analysis – data application” in the big data industry chain. The telecom big data industry is in a period of deep incubation and rapid outbreak. With the establishment of big data application departments by telecom operators headed by China Unicom and the promotion of external big data application services, operators' original communication networks are increasingly difficult to complete large frequencies. Demand for professional DPI equipment has soared with massive data processing and analysis applications. Yongding Zhiyuan has strong technical strength, has many years of experience in equipment development and maintenance, and maintains good cooperative relations with major customers. It currently accounts for about half of China Unicom and China Telecom's market share and is a strong competitive leader in the industry. Yongding Zhiyuan promised that the audited net profit realized in 2016, 2017 and 2018 is not less than RMB 45 million, RMB 55.6 million and RMB 65.5 million. According to the growth rate of the industry, it is considered a conservative estimate. Zhiyuan will bring the company a broad market for big data opportunities and significant performance improvements.

Business addition and subtraction simultaneously, the company's structure continues to optimize: the company's business subtraction has been decisive: the company began to optimize the company's business structure since 2013, and gradually divested real estate, medical and other services, clear the direction of the main business development. Recently, the company's associate company Dongchang Investment sold the equity of Dongchang Automobile, which indirectly led to the divestiture of the automobile sales and after-service business, and obtained a one-time huge gain. The company's business addition has been resolute: the company acquired the Jinting wiring harness and entered the automotive electronics field; the sale of Dongchang Automobile enabled the company to acquire a portion of the equity of Shenhua Holdings 600653, deepening cooperation in the field of car networking. In addition, the company and E Fund overseas or its related parties jointly initiated the establishment of a M&A-type private equity fund with a total size of not more than RMB 1.5 billion to invest in investment opportunities including the automotive after-sales service market, big data and strategic emerging industry related projects. Considering this acquisition of Yongding Zhiyuan, the company has gradually formed a multi-way business line of “Fiber Optic Cable + Overseas Engineering + Automotive Electronics/Communication + Big Data”, and the business line continues to be optimized.

Tianxiang Environment: The first half of the year was in line with expectations, and the oilfield environmental protection is ready to go

Source: Everbright Securities

The first half of the year was in line with expectations: During the period, the company achieved revenue of 316 million yuan, up 61.54% year-on-year, net profit of 0.21 billion yuan, up 43.77% year-on-year, and EPS was 0.148 yuan, in line with our expectations.

The environmental protection business has exerted strength, with revenue accounting for 79%. During the period, benefiting from the consolidated contribution of the American Paladin and the market explosion of oilfield environmental protection, the revenue of environmental protection business increased by 2.24 times to 250 million yuan, and the gross profit margin increased by 4 percentage points to 36.14%; while the traditional domestic hydropower equipment was affected by downstream demand. The impact of the sluggish, revenue fell 56% to 0.19 billion yuan. With the company's in-depth layout in environmental protection equipment, oilfield environmental protection, environmental monitoring and PPP, it is expected that the environmental protection business will continue to break out in the second half of the year, becoming the main contribution point of revenue and profit growth.

The oilfield environmental protection is poised for development, and the company has opened up new important growth points. The environmental protection policy has made a heavy blow and put forward strict requirements on the oilfield environmental protection, which forced the market to release. The oilfield sewage and solid waste design has an annual market scale of 24 billion yuan, and the governance prospects are broad. The company continues to follow up on the four major oil production base projects by virtue of advanced fracturing and drainage treatment process, oilfield wastewater comprehensive treatment process, oily sludge hot water washing process and oily sludge hot washing + drying + pyrolysis + oxidation process. With equipment and technical services cut in, and later to achieve post-operation and maintenance, the first half of the year has taken more than 1 billion orders, it is expected that orders will burst out in the second half.

The first 780 million PPP projects were launched, and efforts were made to create regional PPP leaders. Relying on BWT's core equipment and process technology, the company won the bid for the first PPP project in Jianyang, in which the company will establish a project company with Jianyang Water (the company invested 156 million yuan, holding 95%). There are 183 county-level units in Sichuan Province, with a sewage treatment potential of nearly 200 billion yuan. At present, the penetration rate is only about one-third. The company has technical and regional advantages. In the future, it will deepen Sichuan and face the whole country. It is expected that similar orders will continue to erupt and become The regional PPP faucet will drive the sales of environmental protection equipment and bring about a substantial increase in engineering performance.

Overseas mergers and acquisitions are in the ascendant and continue to expand and expand to achieve a global layout. The company has established a strategic partnership with ANDRITZ Hydropower, one of the world's largest hydropower equipment manufacturers, and acquired overseas companies such as St. Knight, the world's leading environmentally friendly separation equipment manufacturing and engineering service provider, and BWT, a German sewage treatment equipment manufacturer. Equipment technology, applied to domestic projects, "extension + integration" synergy appears, winning by quality, obvious advantages. We believe that the company's overseas market will gradually open up, and the ability to capture high-quality projects will be strengthened, and we will continue to pay attention to good M&A opportunities.

Valuation and Rating: Maintaining the company's net profit of 142 million yuan, 321 million yuan and 452 million yuan in the 16-18 years, the CAGR of the three-year profit in 16-18 is 112.6%, EPS is 0.34 yuan, 0.55 yuan and 0.77 yuan (17-18 years to consider the increase in dilution). Taking into account the company's expectations in the PPP project and oilfield environmental protection field, the company's small market capitalization market has high growth flexibility, giving 40 times 40 times PE in 17 years, raising the target price to 22 yuan, maintaining a "buy" rating.

Risk warning: The company's hydropower equipment continued to decline, and the progress of PPP projects was slower than expected.

Xinye Textile: the release of production capacity and the increase in cotton prices, the performance has increased significantly

Source: Haitong Securities

Event: In the first half of 2016, the company achieved operating income of 1.824 billion yuan (+26.74%), net profit attributable to the parent company of 678.892 million yuan (+60.22%), non-net profit of 61.714 million yuan (+94.17%), cash from operating activities. The net flow was -319 million yuan and EPS was 0.13 yuan/share (+60.25%). The company's profit distribution is planned to use 628 million shares of current share capital, and increase 3 shares for every 10 shares.

The production capacity is released and the price of cotton is rising. In the first half of the year, the company's operating income increased by 26.74%, of which yarn products achieved revenue of 978 million yuan, a substantial increase of 40.61%; grey fabrics achieved revenue of 597 million yuan, down 1.78% year-on-year. The sharp increase in revenue stems from the fact that on the one hand, the new yarn production capacity is gradually released, which leads to an increase in production and sales volume; on the other hand, the increase in cotton prices has brought about an increase in the price of end products.

Cotton prices were smoothly transmitted and gross profit margins rose sharply. The gross profit margin of the company in the first half of 2016 was 19.50%, a sharp increase of 4.36 percentage points over the same period of the previous year. Among them, the gross profit margin of yarn is 18.17%, (+2.58%), and the gross profit margin of grey fabric is 17.96% (+2.2%). At the beginning of the year, the company made ample stocks of cotton raw materials at a low price. Under the background of rising cotton prices, the company's industrial chain was short, price transmission was smooth, and terminal products successfully realized price increases, resulting in a substantial increase in gross profit margin. In terms of net profit margin, the company's net profit margin for the first half of the year was 3.72%, an increase of 0.78 percentage points over the same period of the previous year. It was mainly affected by the company's R&D expenditure for new product research and development, which led to a sharp increase in the management expense ratio.

Policy tightening, subsidy income may be postponed to the fourth quarter. The company expects to achieve a net profit attributable to the parent company of 1.21-1.142 billion yuan from January to September 2016, a year-on-year increase of 20%-40%, lower than the growth rate of 60% in the first half. We believe this is mainly affected by subsidy mismatches. In 2015, the company received government subsidy income of 110 million yuan, of which, the first three quarters received 0.7 billion yuan, accounting for 63%. In the context of stricter policy regulation this year, it is expected that the company will receive less subsidy income in the first three quarters, and most of the subsidy income will be delayed until the fourth quarter, resulting in subsidy mismatch, which will lead to net profit from January to September. The growth rate is expected to be lower than expected.

With multiple benefits, the cotton faucet will start again. 1) The company's current construction capacity includes Yuhua Textile's 138,000-ton high-grade yarn project, Jinyu Textile's 100,000 spindle cotton yarn, 5,000 rotor spinning project and 100,000 spindle intelligent spinning project. It is expected that the above projects will be gradually put into operation in 16 and 17 years, and the new production of more than 300,000 spindles is expected to bring more than double digit growth in revenue. 2) The company will increase 738 million yuan for the construction of 30,000 tons of high-grade knitted fabrics and 30 million knitwear digital processing projects, which will extend the company's industrial chain to the downstream, bring new growth points and enhance product add-on. value. 3) The company is the most beneficial target for cotton price increase. The company's white yarn product industry chain is short and the price is fast. It superimposes the company's low-priced cotton raw material reserves, which brings high performance and is expected to continue until next year.

Profit forecast and valuation. It is estimated that the company's net profit attributable to the parent company in 2016-2018 will be 2.01, 2.67 and 303 million respectively, a substantial increase of 71.74%, 32.76% and 13.38%, corresponding to EPS of 0.32, 0.43 and 0.48 yuan/share respectively. Referring to the relevant comparable companies, the 2016 P/E ratio is between 13X-47X. Considering the company's high growth in the next three years, the company will give the company 35XPE in 2016, with a target price of 11.2 yuan/share and a buy rating.

Construction machinery: the operating rate is maintained at a high level, and the certainty is improved throughout the year.

Source: Haitong Securities

The company's 16-year semi-annual report income of 564 million yuan, +303% yoy, returning to the mother's net profit of 31.28 million yuan, if deducting one-off income such as land compensation, deducting the net profit of the mother after returning -14.05 million yuan, narrowing the loss compared with the same period last year . Pangyuan Leasing 1H16 rental utilization maintained a high boom, and the average rental utilization rate of tower cranes was 60.40%. Considering the impact of the holiday in the first quarter, the tower crane utilization rate may remain above 70% in the second quarter. 1H16 Pangyuan Leasing completed revenue of 408 million yuan and net profit of 25.43 million yuan. If the follow-up utilization rate remains high, the annual performance is expected to increase significantly. We have long been optimistic about the integration trend of the construction machinery rental industry, and believe that the company has the competitive advantage of industrial integration.

Risk warning: There is uncertainty in the speed of industry integration, the macroeconomic downturn, and the downside risks of infrastructure and real estate operating rates.

First flight energy saving: the first light and heat order was signed, the light and heat performance is about to land

Source: Huatai Securities

Signed the first 50MW trough type solar thermal island EPC contract in China: The company and Shandong Electric Power Construction Co., Ltd. recently signed the "Delingha 50MW CSP Project Sun Island EPC Contract", which involved the total contract amount It is about 654 million yuan, about 57.67% of the company's 2015 operating income. The settlement method is 10% for advance payment, 75% for milestone and 15% for operation and inspection. It is estimated that the construction period of the project will be 2016-2017, which will increase the company's corresponding annual income and net profit level.

Providing a general contract for the Asian Development Bank loan project, the domestic and international demonstration effect is strong: CGN's Delingha 50MW trough light and heat project is funded by the low-interest loan provided by the Asian Development Bank, and is the first commercialized CSP project in China. It is also the largest photothermal project in China. Among them, the owner Fangzhong Nuclear and the fund company ADB have high project experience and construction qualification requirements for the equipment suppliers and general contractors of the project. This time, the company has become a strong demonstration effect of the Sun Island general contracting enterprise in the domestic and foreign markets, which confirms the company's competitive advantage in the field of light and thermal power plant general contracting. In the future, the company will undertake the first batch of domestic solar thermal demonstration projects. Contracting and opening up overseas markets have positive effects.

Focus on the layout of solar thermal business, multi-photothermal technology reserve: Considering the various types of photothermal technology characteristics, the company has established a technical route based on tower-based, trough-type and Stirling-style technology in the development of solar thermal business. At the same time, the construction of supporting light and heat equipment manufacturing capacity will meet the equipment quality guarantee, cost advantage and equipment own rate required by the company's future solar thermal power station general package. At present, the company has reached 70% level in the self-sufficiency rate of solar thermal power station equipment, leading Domestic competitors. The company's self-built 10MW molten salt tower type CSP project is expected to be connected to the grid before the end of the year. It is estimated that the project will generate more than 5,000 hours of electricity per year and the annual sales revenue will be about 57.5 million yuan.

Multi-regional planning for light and heat development goals, waiting for the first batch of solar thermal demonstration projects to be implemented: At present, local governments in the country are enthusiastic about the construction of CSP projects, including Zhangbei, Gansu and Qinghai Haixi. It is planned to build 1GW, 1.1GW and 3GW of CSP projects by 2020. At the same time, the approval of the first batch of photothermal demonstration projects led by the National Energy Administration with a total volume of 1GW is nearing completion. If it is approved within the year, it is expected to promote the domestic CSP project to be fully launched in 17 years, which will directly drive the light and heat. The operating income and profit level of equipment manufacturers and general contractors have increased rapidly. It is estimated that during the “13th Five-Year Plan” period, the domestic solar thermal power generation market will be about 150 billion yuan.

Boss Software: Non-tax revenue informationization leader sails

Source: Industrial Securities

The company is a leading company in the field of non-tax information. Non-tax revenue is the main source of income of the government in addition to taxation. The information system is needed as a support in the collection process. The main links include bill management and fund collection. Boss Software 300525 core product is the financial bill electronic management system and non-tax revenue collection management system, the business has spread across 17 provinces, more than 100 cities, 100,000 units; of which the bill management system market share is the nation's number First, it is a leading company in the field.

Factors such as system renewal and non-tax payment electronicization contributed to the steady growth of the main business. The company has a very high market share, customers are sticky, and the demand for system upgrades will continue to be released. At the same time, policy changes will generate new demands. For example, non-tax electronic payment is currently in the pilot exploration stage, and there is still a lot of room for development. The corresponding IT system construction needs are yet to be released.

Create an “e-pay”, build a public payment platform, and expand to the C-end. In recent years, with the transformation of functions, governments at all levels have begun to promote online electronic payment. The company seized this opportunity, based on the card position advantage of the main business, to create “e-pay”, to provide services to the receiving unit in the SaaS software model, to help it directly connect to the bank and non-tax revenue management system, and to The collection link (financial department, receiving unit) expands to the payment link (social public).

Earnings forecast and investment suggestion: The 2016-2018 earnings forecast EPS is 0.65 yuan, 0.79 yuan and 0.96 yuan respectively. We are optimistic about the company's card position advantage in the field of non-tax revenue informationization, and give an "overweight" rating.

Xinhai shares: Yunda's backdoor is steadily advancing, and its performance in the first half of the year continued to grow.

Source: Changjiang Securities

Xinhai Co., Ltd. 002120 released its 2016 interim report. The company achieved operating income of 512 million yuan in the first half of the year, up 14.53% year-on-year. Gross profit margin increased by 2.93 percentage points year-on-year to 27.92%. The net profit attributable to the parent company was 39.8644 million yuan, up 72.35% year-on-year. It was 0.27 yuan, compared with 0.15 yuan in the same period last year.

Event comment: The acquisition of Shenzhen Yumai minority interests resulted in a significant year-on-year increase in net profit. In the first half of the year, the company's net profit attributable to the company increased by 72.35%. Mainly because the company acquired the minority shareholders' equity of Shenzhen Youmai, the net profit attributable to the company increased significantly year-on-year.

Rhyme intends to borrow a new sea, and the risk of passing will be small. On August 20, the company released a draft of major asset replacement, and proposed to replace the entire listed company's assets and liabilities (price of 674 million) with the equivalent of 100% equity of Yunda Cargo (price 17.76 billion). The difference of this replacement is 17.068 billion yuan, calculated according to the issue price of 19.79 yuan / share, the proposed number of issued is 863 million shares. In order to meet the compliance needs and the approval efficiency of the meeting, this backdoor plan does not involve the recruitment of matching funds. Compared with other companies in SF and Tongda, the rhyme will be less risky. As Tongda Department and SF Express are vying to list and intend to realize the further development and transformation of the company, China's express delivery industry has entered the era of capital competition, and the competition in the industry will be more intense in the future.

The performance in the first half of the year continued to grow at a high rate, and the year is expected to exceed expectations. In the first half of 2016, Yunda achieved operating income of 2.95 billion yuan, a year-on-year increase of 35.14%, and achieved a business volume of 1.4 billion pieces, a year-on-year increase of 75.66%. The net profit after deduction was 502 million yuan, a year-on-year increase of 66.23%. Yunda promised that the net profit after deducting non-post-bearing in 2016-2018 should be no less than 1.30 billion, 1.36 billion, 1.560 billion, and 44.42% of the commitments realized in the first half of the year. According to the proportion of 43.52% of the non-attributable net profit in the first half of 2015, the annual results are expected to exceed expectations. Through active implementation of cost reduction and efficiency measures, the company's gross profit margin has steadily increased under the trend of falling gross profit margin. The company continuously optimizes its product structure. While expanding business and high-aging products, it actively develops its business in warehouse allocation, intelligent express delivery cabinets and cross-border logistics.

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