Morning Brief

MarketResearch MorningBrief [September25th,2024] MorningBrief ZHOUJinyu021‐38674924zhoujinyu011178@gtjas.comS0880516080007 Contents TopRecommendations ●MacroResearch:UpdateReport ●A‐ShareStrategy:UpdateReport ●SolaXPowerNetworkTech(688717):OW,TP@RMB72.94 ●LithiumPowerBatterySector:UpdateReport ●OppeinHome(603833):OW,TP@RMB71.10 ●ComputerSector:UpdateReport ●YonghuiSuperstores(601933):OW,TP@RMB2.96 ●RealEstateSector:UpdateReport LatestReports ●ChinasoftIntl(0354.HK):OW,TP@HKD6.58 ●CNBM(3323.HK):OW,TP@HKD3.23↓ SectorRatingsoftheMonthMarketStrategyWeeklyViewpoint 本报告内容译自同日发布的简体中文报告《国泰君安晨报》，报告观点及内容如有任何不一致的地方，一律以该简体中文版报告为准。 TopRecommendations MacroResearch:UpdateReport OnSeptember24thatitspressconferencetitled“FinanceSupportsHigh‐qualityEconomicDevelopment”,theStateCouncilproposedtomakeuseofRRRcut,interestcut,existingmortgageratecutandotherstructuralmonetarypoliciestosupportcapitalmarket.Thismoveisbelievedtohelptopreventrisks,stabilizeexpectationsandboostconfidence.Butinordertofurtherstabilizethedomesticdemand,thecoordinationfromfiscalpoliciesisnecessary.Westressthatthefocusoffiscalpoliciesshallmovefromtheinvestmentsidetotheconsumptionside,inparticular,tothe“new‐typeurbanization”.Thecentralgovernmentshallincreasetheexpendituresonpublicservicesandsocialsecurity,soastorevitalizetheinternalmomentumoftheprivatesector. A‐ShareStrategy:UpdateReport DuringthetechnicalreboundoftheA‐shareindices,werecommendthelow‐valuationblue‐chipstockscharacterizedwith“lowvaluation”and“stableprofitquality”.Theincreasingdisputesofmarketexpectationsforthegovernmentpoliciesdraggeddownrisk‐freeinterestrateandriskassessment,andtheone‐waydeclineofstockindiceschangedintofluctuations.Webelievethelow‐valuationblue‐chipstockswilltaketheleadofmarketrebound.First,theconcentratedtradingofhigh‐dividendstockshasamelioratedconsiderablysofar,andthefurtherdeclineofrisk‐freeinterestratefavorsthereboundofhigh‐dividendsectors,includingelectricpower&publicutilities,telecomoperationandexpressway&portsectors.Second,Besidesthedeclineofinterestrate,thestabilizationoftheterminaldemandin2025alsofavorstheleadinglow‐valuationgrowthstocksintelecom,automobile,electronicandpharmaceuticalsectors.Third,theprivatecompaniesorSOEsofhighROEinhomeappliances,coalandpetrochemicalsectorsmaytakebenefitfromthestockbuybackpolicies. SolaXPowerNetworkTech(688717):OW,TP@RMB72.94 [Rating:OW(Prv:N/A);TP:RMB72.94(Prv:N/A);MP:RMB54.00;Mkt‐Cap:RMB8640mn] TheCompanyisaninternationallyrenownedphotovoltaicenergystoragesystemsupplierintheEuropeanmarket.ItstechnicalR&Dandmarketexplorationwillhelptoincreaseitsmarketshares.WeforecasttheCompany’s2024‐2026EPSofRMB2.20, 4.38and5.64.Withreferencetothevaluationsofcomparablecompanies,wesuggest2025PEof16.7xandcorrespondingtargetpriceofRMB72.94.“Overweight”rating. LithiumPowerBatterySector:UpdateReport Thelithiumbatteryindustryisnowatthenadirofitsbusinesslifecycle.Butthearrivalofthehighseasonofalternativeenergyautoindustryandthestronger‐than‐expecteddemandfromenergystorageindustrymayhelptoimprovethedemand.Atpresent,weprefer(1)theleadinglithiumbatteryproducersofexcellentbusinessresults,includingContemporaryAmperex(300750),BYD(002594), EVEEnergy(300014),Kedali(002850),CNGRAdvancedMaterial(300919)andShangtaiTech(001301);(2)theleadingcompaniesinthelithiumbatteryindustrialchainwhosestockshavesufferedoverselling,includingDynanonic(300769),EnergyNewMaterial(002812)andYunengMaterial(301358). OppeinHome(603833):OW,TP@RMB71.10 [Rating:OW(Prv:OW);TP:RMB71.10(Prv:RMB71.10);MP:RMB48.00;Mkt‐Cap:RMB29239mn] TheCompany’sdistributionplanforitsshareholdershashighlightedtheinvestmentvalueoftheCompany.WemaintainourforecastsoftheCompany’s2024‐2026EPSofRMB4.74,5.04and5.56.WithreferencetothevaluationsofcomparablecompaniesandalsotakingintoaccounttheCompany’sleadingpositionincustom‐madefurnitureindustryandtheeffectofitspreviousorganizationalstructureadjustment,wemaintaintargetpriceofRMB71.1(2024PEof15x)and“Overweight”rating. ComputerSector:UpdateReport TheITapplicationinnovationindustrynowenjoysbothpolicysupportandrisingdownstreamdemand.Offeaturedcompanies,werecommendKingsoft(688111),Pansoft(300996),Talkweb(002261),iSoftStone(301236),Transwarp(688031),ChinasoftIntl(0354.HK),Foxit(688095),IEITSystems(000977)andUnisplendour(000938).OtherbeneficiariesincludeVastdata(603138),Taiji(002368),Dameng (688692),Hygon(688041),DawningInfo(603019),Cambricon(688256),Loongson (688047),DigitalChina(000034),ChinaSoftware(600536),ArcherMind(300598), Kylinsec(688152),Hoperun(300339),Empyrean(301269),Zwsoft(688083),Semitronix (301095),Ninestar(002180),ChinaGreatwallTech(000066),Tongtech(300379), Cvicse(688695),Baolande(688058),Primeton(688118),Zhongfu(300659),Apex (603383)andKoal(603232). YonghuiSuperstores(601933):OW,TP@RMB2.96 [Rating:OW(Prv:OW);TP:RMB2.96(Prv:RMB2.96);MP:RMB2.48;Mkt‐Cap:RMB22506mn] TheCompany’sthreeshareholdersincludingMilkCo.,JingdongShimaoandSuqianHanbangplanstosell1,913mn,367mnand387mnshares(21.08%,4.05%and4.27%oftheCompany’stotalequity)oftheCompanytoGuangdongJuncaiInterna