Yongxin Shares: The commissioning of the fundraising and investment projects will bring more growth points to the company

The commissioning of the fundraising and investment projects will bring more performance growth points to the company.

Preliminary calculations show that the gross profit margin of the flexographic printing project can be increased by 3 to 4 percentage points compared with the traditional process; the special-shaped injection molding project will provide the company with relevant experience in producing hard plastic packaging products. At present, the gross profit margin of hard plastic packaging is higher than that of soft plastic. If the company can take this opportunity to provide customers with a soft and hard integrated packaging solution, it will be conducive to further increase the company's gross profit. At present, Hebei Yongxin's production capacity utilization is close to saturation. After the high-resistance packaging project is put into production, it will increase the company's production capacity and expand the scope of application of the company's products, which will effectively promote Hebei Yongxin to increase its market share.

Yongxin Shares' market share is expected to increase further.

At present, Yongxin Shares is the leading enterprise in China's soft plastic packaging industry, with a market share of about 5%. Internationally renowned soft plastic packaging companies such as BEMIS and Toyo Can Co., Ltd. can reach 13% to 16% in their Chinese market share. The company's market share still has a lot of room for improvement. Benefiting from the rapid growth of downstream enterprises, the company's market share will further expand.

The company's products are in short supply and there is no danger of "pressure on both ends".

At present, the company's capacity utilization rate has basically reached its limit, but its market share is relatively low, which allows the company to have a relatively large space for independent selection when choosing customers and can concentrate on serving high-quality customers. In recent years, international oil prices have risen sharply, but the company's net profit margin has not declined, indicating that the company has a certain initiative in price negotiations and does not need to worry about "pressure on both ends".

Investment advice and rating.

The company's downstream customer demand is stable, and its competitiveness will be further strengthened after the fundraising and investment projects are put into production. It is estimated that the company's fully diluted EPS in 2012-2014 will be 0.53, 0.66 and 0.79 yuan respectively, corresponding to the current price-earnings ratio of 16.85, 13.51 and 11.21 times respectively. The company is a leading enterprise in the color printing composite flexible packaging industry, and its performance growth is highly certain. Given a "strong recommendation" rating, the first target price is 12.18 yuan.

Risk warning

Crude oil prices soared; the market acceptance of flexographic printing projects was lower than expected.

(Minsheng Securities)

Shandong Coal International: Volume and price increases boosted the company's performance

Investment highlights:

1. The coal stock with the best growth potential: With the gradual commissioning of the integrated mines, the company's production compound growth rate from 12 to 14 years was 45%, and the equity production compound growth rate was 42%, making it the coal stock with the best growth potential.

2. Rising coal prices boosted the company's profit per ton of coal: The company's comprehensive coal price in December increased by 75 yuan/ton compared with September, and the profitability of a ton of coal increased significantly.

3. Looking forward to the transformation of trade, the sector is expected to break even: The company's trade sector is expected to transform into a channel service provider, which greatly reduces the volatility of the trade sector's profits. It is expected that after the transformation is completed, the sector is expected to break even.

Earnings forecast and investment rating:

The company's EPS in 2012-2014 was 0.84 yuan, 1.53 yuan and 2.24 yuan respectively, and the growth in 2013-2014 was 82% and 46% respectively. Considering the company's high internal growth, we give 15 times PE according to the performance in 2013, the target share price is 23 yuan, and give an investment rating of "strong recommendation-A".

Risk warning:

Coal prices fell, and the progress of integrated mine release was lower than expected.

(China Merchants Securities)

Xinlun Technology: Large orders to ensure growth

I. Event:

Xinlun Technology and Changsha Chuangxin Integrated Circuit Co., Ltd. signed the "Clean and Electromechanical Installation Engineering Contracting Contract". The company provided purification engineering services to Changsha Chuangxin, and the contract amount was 61.3 million yuan. The project content mainly includes the purification and electromechanical installation engineering of the 6-inch integrated circuit chip production line project. Changsha Chuangxin plans to build the 6-inch wafer project with the largest design capacity in China in Changsha, with a total investment of 300 million US dollars.

II. Analysis and judgment:

The contract will bring profit improvement in the next two years.

The total contract amount accounts for about 6.43% of the company's operating income in 2011. The performance of the contract will have a positive impact on the company's operating income and operating profit in 2012 and 2013.

The company will benefit from the development of downstream industries.

During the "12th Five-Year Plan", the development of strategic emerging industries such as new generation information technology, biology, and high-end equipment manufacturing will drive the development of the clean room industry. At the same time, the development of downstream industries is becoming more high-end, precise, and large-scale, which will bring more anti-static/clean room needs. The company will benefit from the development of downstream industries.

Three factors will drive the anti-static/clean room industry to continue to improve

We believe that in the case of economic downturn, the anti-static/clean room industry will continue to improve. (1) The market size of anti-static/clean room industry products and services in the electronic product manufacturing and electronic components industries will also grow steadily. (2) The GMP transformation of the pharmaceutical industry will promote the rapid development of the anti-static/clean room industry in the biopharmaceutical industry. With the mandatory implementation of GMP in the pharmaceutical industry in 2013, orders from the pharmaceutical industry will increase significantly. (3) The "Technical Specifications for Clean Room Construction in the Food Industry" will be implemented.

III. Earnings forecast and investment advice.

We expect the company's earnings to be 0.36 and 0.51 yuan before dilution in 2012-2013. The earnings after dilution of the additional issuance will be 0.28 and 0.40 yuan. The current PE is 31 and 22 times. Maintain the previous "strong recommendation".

(Minsheng Securities)

Hengrui Medicine: Continuous investment is expected to enter the harvest period

New drug research:

The clinical research of apatinib for gastric cancer indication is progressing smoothly and is expected to be approved in the second half of next year. The indication for liver cancer is currently in phase III clinical trials. Lung cancer and triple-negative breast cancer may end clinical trials and organize data. The phase III clinical trial of granulocyte stimulating factor has also entered the end, and the progress is good. It is expected to obtain a new drug certificate next year. The phase II clinical trial of famitinib has ended and is about to enter the phase III clinical trial. The phase III clinical trial of relagliptin is in progress.

The company's internationalization is progressing smoothly:

The company's irinotecan has completed the US FDA certification, oxaliplatin has passed the EU COS certification, and the FDA and EU on-site inspections of letrozole have ended. The anti-tumor drug docetaxel and the contrast agent iofluanidone have submitted materials. It is expected that the company is also looking for international partners to sell export preparations. The synergy effect of the echelon of preparation export products has gradually formed, and it is expected to start to increase in volume next year and the year after.

Financial consolidation continues, and is expected to enter the harvest period:

The company has been continuously investing in sales and R&D since 2009. Since 2010, the growth rate of sales expenses and administrative expenses has been higher than the company's revenue growth rate, resulting in the company's net profit growth rate remaining at a low level in recent years. We believe that as the company's academic marketing increases, the sales expense rate will show a downward trend, and the high investment in R&D in the past three years will gradually usher in a harvest period. With the continuous listing of new drugs and the acceleration of preparation exports, the company's profit growth space will be opened.

Policies are favorable to leading pharmaceutical companies:

Anhui county-level public hospital bidding publicizes commercial bid quotations. Compared with other competitors, the company has a strong ability to maintain prices. The upcoming generic drug consistency evaluation is expected to narrow the quality gap between original research drugs and generic drugs. While improving the quality and safety of Chinese drugs, it will play a positive role in price maintenance for large pharmaceutical companies with quality advantages such as Hengrui.

Investment advice and rating:

We estimate the company's earnings per share to be 0.85, 1.09 and 1.39 yuan in 2012-2014 respectively. With reference to the valuation of comparable companies, given that the company's "innovation + globalization" strategy is becoming clearer, and new drugs currently in the clinical stage are expected to be launched one after another, and considering that the company's sales model transformation will hopefully enhance the company's profitability, we give the company a certain valuation premium. We give the company a 42 times P/E ratio in 2012, corresponding to a target price of 35.70 yuan, and maintain the company's "buy" rating.

Risk warning:

Innovative drug research and development failed; international certification encountered obstacles, and our asset management holds more than 1% of the shares.

(Orient Securities)

Yian Technology: Ushering in the "magnesium" era of consumer electronics

Summary:

The company is the leader in China's consumer electronics magnesium alloy die-casting industry.

The company currently has the largest number of magnesium alloy die-casting machines in China. After going public, the company has increased its investment in new magnesium alloy die-casting equipment and has introduced more than 30 advanced 100-500 ton magnesium alloy die-casting equipment. In terms of 3C customers, the company has recently successfully developed international consumer electronics manufacturers such as Woodman (sports cameras), Amazon (tablets), and Huawei (smartphones). Next year, the company will obtain product supply qualifications for more first-tier international brand manufacturers and supply in batches, which will provide continuous growth momentum for the company in the future. It is expected that in Q4 2012, the company's consumer electronics product revenue will account for more than 50%.

The 3C magnesium alloy casting industry faces a 5-year golden period of rapid growth.

1. The magnesium alloy die-casting industry has just emerged, with high entry barriers and a not yet fierce competitive environment. It is expected to usher in a 3-5 year period of rapid growth. 2. Magnesium alloys are rapidly penetrating in many fields. Magnesium alloys with "King Kong body protection and texture as king" will bring about a revolution in the metal shell of 3C products. Magnesium alloy die-casting structural parts will quickly penetrate into notebooks, mobile phones, tablets, smart TVs, and LED lamp products, and the scale of the 3C magnesium alloy industry will quickly exceed 10 billion. 3. Magnesium alloy die-casting is not limited to the field of consumer electronics. Magnesium alloy die-casting will replace aluminum/zinc alloys in various traditional die-casting fields. Its application and development in industrial fields such as automobiles, aerospace, and medical care has just begun. In the future, the entire magnesium alloy market is expected to expand to a scale of 100 billion. 4. The company is actively entering the field of magnesium alloy die-casting appearance parts for notebooks, mobile phones, and tablets with higher added value and gross profit margins. At present, the company's magnesium business has a low base. It is expected that the sales revenue of magnesium alloys will exceed 60 million this year, accounting for more than 20% of the revenue. It is expected that the annual growth rate of this new business with high added value and high gross profit margin will be above 50% in the next three years.

We are optimistic about the company's transformation to focus on the strategic positioning of magnesium alloy die-casting business and consumer electronics industry.

The company's strategic positioning of shifting its focus to the consumer electronics industry is in line with the current trend of thin and light electronic products, and the industry development direction of the rapid growth of magnesium alloy die-casting materials in 3C consumer electronic products. This is also a strong driving force for the growth of the entire die-casting industry in the future. The company has a one-stop full-service capability from mold manufacturing-die-casting production-post-processing and mechanical processing-surface treatment. It only takes 1 week to open a new product mold, which well meets the demanding requirements of consumer electronics customers for quick response from suppliers.

Investment advice and ratings.

With the commissioning of the company's new die-casting machines and the development of new major consumer electronics customers, as the leader of China's consumer electronics die-casting industry, the company will be able to seize the golden opportunity of the 3C magnesium alloy die-casting industry and achieve rapid growth in performance. The company's EPS in 2012, 2013 and 2014 are expected to be 0.48 yuan, 0.62 yuan and 0.87 yuan respectively, corresponding to the PE of the stock price on December 24, 30.9 times, 23.8 times and 17.0 times respectively. The company is given a "strongly recommended" investment rating for the first time.

Stock price catalysts:

The successful development of international major customers of consumer electronics; the rapid increase in the penetration rate of magnesium alloy brackets and shells in smart phones and tablets; the company has entered other consumer electronics metal die-casting fields such as superbook magnesium alloy shells.

Risk warning:

The application of magnesium alloy brackets in smart phones and tablets is lower than market expectations; the price of magnesium alloy die-casting parts has fallen; the price of metal raw materials has fluctuated; the giants of the aluminum alloy die-casting industry (Ju Teng, Hon Zhun, etc.) have entered the consumer electronics magnesium alloy die-casting industry to grab food.

(First Entrepreneurship)

Wanda Information: Fully benefit from the construction of smart cities

1. Fully benefit from the construction of "smart cities".

The company occupies about 30% of the market share in Shanghai's urban informatization field and is China's leading urban informatization software development and service provider. The company has outstanding advantages in many "smart city" construction fields, especially in the fields of social security and health services. Since its listing, the company has continuously promoted the expansion of regional business and gradually moved towards China. While consolidating its advantages in existing fields, it has also formed four expansion fields: logistics management, science and technology education, environmental reporting, and land resources, and continuously strengthened its comprehensive competitiveness in the construction of "smart cities".

2. The construction of "smart cities" has entered a peak period.

The rapid urbanization process has promoted the rapid development of China's economy, but it has also made cities face the problem of sustainable development. The next stage of "urbanization" construction needs to take the "new urbanization" road of "fine management", so "smart cities" came into being. "Smart cities" refer to the use of leading information technology to improve the level of intelligence in urban planning, construction, management, and services, so that urban operations are more efficient, more agile, and less carbon-intensive. It is a new model for urban development in the information age. According to CCID Information, by 2014, China's smart city IT investment is expected to reach more than 170 billion yuan.

3. Social security and medical care are given prominence.

Among the many "smart city" construction fields, social security and medical care are given prominence. The 18th National Congress report clearly proposed to "coordinate the construction of urban and rural social security systems and improve people's health levels", and the realization of this goal is inseparable from the construction of informatization. According to CCID Information, by 2015, the investment scale of China's social security IT application market will reach 10.19 billion yuan, and the compound growth rate in the next few years will reach 16.56%. According to IDC's forecast, the market scale of medical industry IT spending will reach 33.99 billion yuan in 2016. The continuous improvement of people's requirements for urban living standards is driving the rapid growth of medical and social security informatization.

4. Technology innovation and service-oriented enterprises will stand out in the future software industry competition.

In the past decade, China's software industry and enterprises have experienced rapid growth. The industry will show three trends in the future: high-end services represented by software development and operation services will become the focus of software development; the trend of product and service integration is obvious, and the industry concentration is increasing; technological changes drive changes in industry models and competition patterns. Therefore, only companies that continue to innovate technology, accelerate technology and service integration, and continuously improve integrated IT service capabilities can stand out in the more intense competition and become bigger and stronger.

Investment advice and rating:

We believe that the company has outstanding competitive advantages in many areas of "smart city" construction, especially in social security and medical and health care. The company's continuous technological innovation and IT service transformation will help the company stand out in more intense competition. We expect the company's EPS in 2012-2014 to be 0.47, 0.62 and 0.80 yuan, and the corresponding dynamic PE is 29X, 22X and 17X, and maintain the company's "short-term_recommended, long-term_A" investment rating.

Risk warning:

The slowdown in the macro economy has led to a decline in IT investment, and the lifting of the ban on non-tradable shares on the ChiNext has affected valuations.

(Guodu Securities)

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