Morning Brief

MarketResearch MorningBrief [October24th,2024] MorningBrief ZHOUJinyu021‐38674924zhoujinyu011178@gtjas.comS0880516080007 Contents TopRecommendations ●SatelliteChemical(002648):OW,TP@RMB22.10↑ ●Huaxiang(603112):OW,TP@RMB16.35 ●Gan&LeePharma(603087):OW,TP@RMB60.03 LatestReports ●Shuangma(000935):OW,TP@RMB23.70 ●ChuanningBiotech(301301):OW,TP@RMB17.48↑ 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 SatelliteChemical(002648):OW,TP@RMB22.10↑ [Rating:OW(Prv:OW);TP:RMB22.10(Prv:N/A);MP:RMB18.74;Mkt‐Cap:RMB63128mn] TheCompanyreported2024Q3revenueofRMB12.875bn(+9.89%yoy,+21.51%qoq),netprofitofRMB1.637bn(+2.08%yoy,+58.36%qoq)andnetprofitbeforenonrecurringgains/lossesofRMB1.854bn(+32%yoy,+58.27%qoq),betterthanmarketexpectation.WemaintainourforecastsoftheCompany’s2024‐2026EPSofRMB1.70,1.93and2.77.Withreferencetothevaluationsofcomparablecompanies,wesuggest2024PEof13xandraisethecorrespondingtargetpricetoRMB22.10.“Overweight”ratingmaintained. Huaxiang(603112):OW,TP@RMB16.35 [Rating:OW(Prv:OW);TP:RMB16.35(Prv:RMB16.35);MP:RMB11.91;Mkt‐Cap:RMB5518mn] TheCompanyreported2024Q1~3revenueofRMB2.787bn(+18.45%yoy),netprofitofRMB341mn(+21.18%yoy)andnetprofitbeforenonrecurringgains/lossesofRMB305mn(+22.60%yoy),ofwhich,2024Q3revenuewasRMB857mn(+4.75%yoy, ‐13.29%qoq),netprofitwasRMB110mn(+4.82%yoy,‐12.15%qoq)andnetprofitbeforenonrecurringgains/losseswasRMB97mn(+4.44%yoy,‐17.43%qoq).WemaintainourforecastsoftheCompany’s2024‐2026EPSofRMB1.04,1.30and1.51.WemaintaintargetpriceofRMB16.35and“Overweight”rating. Gan&LeePharma(603087):OW,TP@RMB60.03 [Rating:OW(Prv:OW);TP:RMB60.03(Prv:RMB60.03);MP:RMB50.89;Mkt‐Cap:RMB30588mn] TheCompanyreported2024Q1~3revenueofRMB2.245bn(+17.81%yoy),netprofitofRMB507mn(+90.36%yoy)andnetprofitbeforenonrecurringgains/lossesofRMB311mn(+38.64%yoy),ofwhich,2024Q3revenuewasRMB930mn(+37.61%yoy),netprofitwasRMB208mn(+57.47%yoy)andnetprofitbeforenonrecurringgains/losseswasRMB184mn(+50.79%yoy).TheCompanyrealizedfastrevenueandprofitgrowthin2024Q3.WemaintainourforecastsoftheCompany’s2024‐2026EPSofRMB1.19,2.02and2.63.WemaintaintargetpriceofRMB60.03(2025PEof30x)and“Overweight”rating. LatestReports Shuangma(000935):OW,TP@RMB23.70 [Rating:OW(Prv:OW);TP:RMB23.70(Prv:RMB23.70);MP:RMB18.40;Mkt‐Cap:RMB14047mn] DuetotheimpactsfromtheCompany’soriginalinvestmentandcementbusinesses,welowerourforecastsoftheCompany’s2024‐2026netprofitfromRMB1.0bn,1.5bnand1.9bntoRMB0.565bn,1.196bnand1.518bn,andcorrespondingEPStoRMB0.74,1.57and1.99.WemaintaintargetpriceofRMB23.70(2024PEof32x)and“Overweight”rating. ChuanningBiotech(301301):OW,TP@RMB17.48↑ [Rating:OW(Prv:OW);TP:RMB17.48(Prv:RMB14.56);MP:RMB13.45;Mkt‐Cap:RMB29955mn] TheCompanyreported2024Q1~3revenueofRMB4.456bn(+24.43%yoy)andnetprofitofRMB1.076bn(+68.07%yoy),ofwhich,2024Q3revenuewasRMB1.261bn(+8.31%yoy)andnetprofitofRMB310mn(+24.20%yoy),inlinewithexpectation.Astheantibioticproductssalesremainhighandsyntheticbio‐productshavestartedtocontributeprofit,weraiseourforecastsoftheCompany’s2024‐2026EPSfromRMB0.56,0.69and0.83toRMB0.63,0.76and0.87.Withreferencetothevaluationsofcomparablecompanies,wesuggest2025PEof23xandraisethecorrespondingtargetpricetoRMB17.48(from14.56).“Overweight”ratingmaintained. SectorRatingsoftheMonth RatingSector OW BuildingMaterials,ComprehensiveFinance,Insurance,CommercialBanking,Coal,Food&Drink, Pharmaceutical,RealEstate,MachineryManufacturing,Transportation,ConstructionEngineering,NonferrousMetals HouseholdAppliances,TransportationEquipment,MassMedia&Cultural,Agriculture,Textile& NT UWInformationTechnology,InformationScience Garments,Retailing,PowerEquipment,SocialServices,PublicUtilities,Iron&Steel Note:TheratingsabovearemadebyGTJAStrategyTeam,whichmaynotalwaysbeinlinewiththeopinionsofGTJAindustryanalystsduetodifferentemphasesandtimerangeswhentheseratingsaremade. MarketStrategyWeeklyViewpoint(LastUpdate:October20th,2024)A‐ShareStrategyWeekly:EnteringCorrections Thedisputesbetweenthepolicyexpectationsnarrowed,andthemarketreboundebbedintocorrections.TheactualmarketperformancessofarareinlinewithourviewpointsinceSeptember24ththat“thestockindiceswillgoupfirstandthenentercorrections,andbluechipswilltaketheleadofmarketrise,followedbygrowthstocks”.Inthemediumterm,thechangeoftheauthority’sattitudetowardeconomicsituationandcapitalmarketistheessentialcausefortherevivalofstockmarketandriskappetite.Thebottomofstockmarkethasbeenconsolidatedandelevated.Thedeclineofnominalinterestratesandtheexpectationforassetinflationaretwopositivemedium‐termfactors.However,aftertheprevioussuddenhike,ShanghaiCompositeisexpectedtorunintocorrectionsoverthenextonetotwomonths,duringwhich,theimportanceofstockstructureoverweighstheimportanceofstockindices.First,thepotentialappreciationandvolatilityofheavy‐weightstockswillgodown,becausethemarketdisputeshavenarrowedaftertheconfirmationofthefinancial,fiscalandrealestatepolicies.Second,growthstocksandthematicstockswillenjoybetterchances,drivenbytheriseofriskappetiteandthee