Morning Brief

MarketResearch MorningBrief [October25th,2024] MorningBrief ZHOUJinyu021‐38674924zhoujinyu011178@gtjas.comS0880516080007 Contents TopRecommendations ●Taiji(002368):OW,TP@RMB39.71 ●A‐ShareStrategySpecial:OverseasOpportunitiesforChineseManufacturingIndustry ●SteelSector:UpdateReport ●Runben(603193):OW,TP@RMB30.69↑ ●AmoyDiagnostics(300685):OW,TP@RMB31.16↑ ●IndustryResearch:Robotaxi ●SundyTech(300515):OW,TP@RMB17.54 LatestReports ●HKEX(0388.HK):OW,TP@HKD430.00 ●RoyalFlush(300033):OW,TP@RMB280.57↑ ●CGNPower(1816.HK):OW,TP@HKD3.90 ●TCLElectronics(1070.HK):OW ●BankofNanjing(601009):OW,TP@RMB11.85 ●CGNPower(003816):OW,TP@RMB5.75 ●RichfulLubeAdditive(300910):OW,TP@RMB54.46↑ ●BestPrecision(300580):OW,TP@RMB21.90↑ ●BankofHangzhou(600926):OW,TP@RMB16.50↑ 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 Taiji(002368):OW,TP@RMB39.71 [Rating:OW(Prv:N/A);TP:RMB39.71(Prv:N/A);MP:RMB24.89;Mkt‐Cap:RMB15512mn] WeforecasttheCompany’s2024‐2026EPSofRMB0.61(+1.3%Yyoy),0.96(+57.8%yoy)and1.40(+45.6%yoy).Withreferencetothevaluationsofcomparablecompanies,wesuggest2025PEof41.25xandcorrespondingtargetpriceofRMB39.71.“Overweight”rating. A‐ShareStrategySpecial:OverseasOpportunitiesforChineseManufacturingIndustry TheChinesemanufacturingindustryisabletomakeuseofitsadvantagestorealizetheexportsofbothproductsandproductioncapacities.WeconcludethefollowingthreemajoroverseasopportunitiesandthecorrespondingbeneficiaryChinesemanufacturingenterprises: (1)Fasterconstructionoftheinfrastructurefacilitiesandproductioncapacities:Chineseconstructionmachinery,shipbuilding,powergridequipmentandchemicalengineering; (2)FastergrowthofexporttoAfricanandAmericancountries:homeappliances,furnitureandtextile&apparels; (3)ExportofChina’sadvancedproductioncapacitiessoastoexplorenewdemandandtoevadetraderestrictions:electronic,lithiumbatteryandautoandautoparts. SteelSector:UpdateReport Wemaintain“Overweight”ratingforthesteelsector.Mostofthesteelcompaniesarenowbelow1xPB,andsomeofthemareevenbelow0.5x.Weanticipatethelatestpolicysupportwillhelptoelevatethestockvaluationofthesteelcompanies. Offeaturedcompanies,werecommend(1)(productstructureupgrading)ValinSteel(000932);(leadingtechnologiesandproductstructure)Baosteel(600019);(lowcostandbettermanagement)XinyuSteel(600782);(2)(highbusinessclimateofspecialsteelandnewmaterials)CITICSpecialSteel(000708)andYongjinTech(603995);(hugedomesticdemandforboilerandoilfieldpipes)WujinStainless(603878),JiuliMetals(002318)andShengtakNewMaterial(300881);(high‐temperaturealloys)TolandAlloy(300855);(newmaterials)POCO(300811)andXianglouNewMaterial(301160);(3)(therisingdemandforupstreamresources)HBISResources(000923),ErdosResources(600295),DazhongMining(001203)andAnning(002978). Runben(603193):OW,TP@RMB30.69↑ [Rating:OW(Prv:OW);TP:RMB30.69(Prv:RMB21.32);MP:RMB24.39;Mkt‐Cap:RMB9868mn] TheCompanyisabletosustainitsgrowthbymeansoflaunchingnewproductsandexpandingdistributionchannels.Takingintoaccounttherecenthotsalesofitsproducts,weraiseourforecastsoftheCompany’s2024‐2026EPStoRMB0.79(+0.03), 0.99(+0.05)and1.22(+0.06).Withreferencetothesectorvaluation,wesuggest 2025PEof31xandraisethecorrespondingtargetpricetoRMB30.69(+9.37).“Overweight”ratingmaintained. AmoyDiagnostics(300685):OW,TP@RMB31.16↑ [Rating:OW(Prv:OW);TP:RMB31.16(Prv:RMB24.61);MP:RMB25.40;Mkt‐Cap:RMB10123mn] BecausetheCompanyhasdoneagoodjobincostcut,weraiseourforecastsoftheCompany’s2024‐2026EPSfromRMB0.73,0.95and1.24toRMB0.82,1.03and 1.28.Withreferencetothevaluationsofcomparablecompanies,wesuggest2024PEof38xandraisethecorrespondingtargetpricetoRMB31.16.“Overweight”ratingmaintained. IndustryResearch:Robotaxi FastergrowthRobotaxiworldwidewillspeeduptheadvanceofautopilot.Driverlesstaxishelptoimproveconsumers’recognitionofautopilot,andatthesametime,themileageaccumulationalsocontributestotheimprovementanditerationoftechnicalsolutions.ThedevelopmentoftheRobotaxiindustryintheU.S.will,ononehand,increasethesalesOEMssuchasTeslaandthedemandforrelatedautoparts.Ontheotherhand,itwillacceleratethedevelopmentoftheChineseautopilotindustrialchain. Offeaturedcompanies,weprefer(1)(automanufacturers)JianghuaiAutomobile(600418),ChanganAutomobile(000625),LiAuto(2015.HK),Xiaomi(1810.HK),XPeng(9868.HK)andGeelyAutomobile(0175.HK);(2)(autopilotparts)DesayAVAutomotive(002920),Xingyu(601799),Keboda(603786)andForyou(002906);(3)(Teslaindustrialchain)Tuopu(601689),ShuanghuanDriveline(002472),Xinquan(603179)andYinlun(002126). SundyTech(300515):OW,TP@RMB17.54 [Rating:OW(Prv:N/A);TP:RMB17.54(Prv:N/A);MP:RMB11.84;Mkt‐Cap:RMB2436mn] WeforecasttheCompany’s2024‐2026netprofitofRMB140mn,184mnand217mn,andEPSofRMB0.68,0.89and1.05.TakingintoaccountthedemandforunmannedcoalqualitydetectorsfromthermalpowerindustryandcoalindustryaswellastheCompany’sintellectualpropertyadvantage,wesuggesttargetpriceofRMB17.54(49%abovecurrentstockprice).“Overweight”rating. LatestReports HKEX(0388.HK):OW,TP@HKD430.00 [Rating:OW(Prv:OW);TP:HKD430.00(Prv:HKD430.00);MP:HK