Morning Brief

MarketResearch MorningBrief [November6th,2024] MorningBrief ZHOUJinyu021‐38674924zhoujinyu011178@gtjas.comS0880516080007 Contents TopRecommendations ●WarIndustrySector:UpdateReport ●ChinaResourcesGas(1193.HK):OW,TP@HKD37.05 ●SocialServicesSector:SpecialReport ●PharmaceuticalSector:SectorStrategy LatestReports ●Heli(600761):OW,TP@RMB23.36↓ ●Xinfengming(603225):OW,TP@RMB14.04↓ ●Accelink(002281):OW,TP@RMB55.80↑ ●Tongkun(601233):OW,TP@RMB14.30↓ ●KangtaiBioProducts(300601):OW,TP@RMB23.50↓ ●WeizhixiangFood(605089):OW,TP@RMB24.90↑ ●XindeNewMaterial(301349):OW,TP@RMB36.29↓ ●AosaikangPharma(002755):OW,TP@RMB16.52↑ 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 WarIndustrySector:UpdateReport Weconcludethefollowingfourmajorinvestmentthreadsandfeaturedcompanies:(1)finalassembly:AVICShenyangAircraft(600760);(2)componentsandparts:AVICOptronic(002179)andSpaceAppliance(002025);(3)subsystems:AVICAirborneSystems(600372)andNorthNavigationControl(600435);(4)materialsandprocessing:FushunSpecialSteel(600399),AVICHeavyMachinery(600765),FeilihuaQuartzGlass(300395),ToLandAlloy(300855),HuaqinTech(688281)andBrightLaser(688333). Therelatedfeaturedcompaniesinclude(1)finalassembly:AerospaceCHUAV(002389)andAVICXi’anAircraft(000768);(2)componentsandparts:UnigroupGuoxinMicroelectronics(002049),HongyuanElectronic(603267),ZhenhuaTech(000733)andTorchElectron(603678);(3)sub‐systems:AECCAviationPower(600893),ZhonghangElectronicMeasuring(300114)andJianghangAircraftEquipment(688586);(4)materialsandprocessing:AvicAviationHigh‐Tech(600862),SinofibersTech(300777),WesternSuperconducting(688122),GuangweiComposites(300699)andAviationTech(688239). ChinaResourcesGas(1193.HK):OW,TP@HKD37.05 [Rating:OW(Prv:N/A);TP:HKD37.05(Prv:N/A);MP:HKD30.60;Mkt‐Cap:HKD70809mn] WeforecasttheCompany’s2024‐2026EPSofHKD2.47,2.75and3.00.Basedonbothrelativevaluationandabsolutevaluation,wesuggesttargetpriceofHKD37.05(2024PEof15x).“Overweight”rating. SocialServicesSector:SpecialReport Wemaintainourrecommendationforthefollowingsub‐sectorsandfeaturedcompanieswhosebusinessclimatesremainhighorhavebottomedout. (1)EducationandInternetPlatform:BeststudyEducation(3978.HK),ScholarEducation(1769.HK),NewOrientalEducation(9901.HK)andTuhu(9690.HK); (2)Fair‐priceOverseasRetailing:Miniso(9896.HK),CommoditiesCity(600415),Ugreen(301606)andAnkerInnovations(300866); (3)Tourism:TongchengTravel(0780.HK),Trip.com(9961.HK),SanteCableway(002159),JiuhuashanTourism(603199)andChangbaiMountainTourism(603099); (4)GoldandJewelryRetailing:LaopuGold(6181.HK),CHJ(002345)andLaoFengXiang(600612); (5)ThematicInvestment:(a)“SuperstoreReforms”:YonghuiSuperstores(601933); (b)“PolicyExpectations”:familyplanningandtourism;(c)“EducationAI”:DoushenEducation(300010). PharmaceuticalSector:SectorStrategy Forallthemixedperformancesofpharmaceuticalcompaniesrecentyearsin differentregions,wesuggestthefollowingkeypointsandfeaturedcompanies: (1)Policysupportoninnovations:HengruiPharma(600276),BeiGene(6160.HK),Akeso(9926.HK),InnoventBio(1801.HK),Kelun‐Biotech(6990.HK),Hutchmed(0013.HK),Keymed(2162.HK)andGenrixBiopharma(688443); (2)In‐hospitalmedicinesandinnovations:NhwaPharma(002262),Gan&LeePharma(603087),HuadongMedicine(000963)andKelunPharma(002422); (3)Recoveryofmedicalinstrumenttendersin2025:Mindray(300760)andSonoscapeMedical(300633); (4)Medicalinstrumentexport:NewIndustriesBioEngineering(300832)andBMCMedical(301367). LatestReports Heli(600761):OW,TP@RMB23.36↓ [Rating:OW(Prv:OW);TP:RMB23.36(Prv:RMB26.50);MP:RMB19.43;Mkt‐Cap:RMB17306mn] Takingintoaccountboththeslackdomesticmarketandtherisingforkliftexport,welowerourforecastsoftheCompany’s2024‐2026EPSfromRMB1.79,2.05and2.32toRMB1.61,1.83and1.90.Withreferencetothevaluationsofcomparablecompanies,wesuggest2024PEof14.51xandlowerthecorrespondingtargetpricetoRMB23.36.“Overweight”ratingmaintained. Xinfengming(603225):OW,TP@RMB14.04↓ [Rating:OW(Prv:OW);TP:RMB14.04(Prv:RMB15.15);MP:RMB11.55;Mkt‐Cap:RMB17611mn] Becausethehighoilpricesin2024Q3hasdepressedtheprofitofPTAbusiness,welowerourforecastsoftheCompany’s2024‐2026EPSfromRMB1.01,1.27and1.52toRMB0.79,1.17and1.37.Withreferencetothevaluationsofcomparablecompanies,wesuggest2025PEof12xandlowerthecorrespondingtargetpricetoRMB14.04(from15.15).“Overweight”ratingmaintained. Accelink(002281):OW,TP@RMB55.80↑ [Rating:OW(Prv:OW);TP:RMB55.80(Prv:RMB46.25);MP:RMB45.73;Mkt‐Cap:RMB36319mn] TheCompany’s2024Q3resultswerebetterthanmarketexpectation.WemaintainourforecastsoftheCompany’s2024‐2026netprofitofRMB840mn,1,476mnand1,914mn,andEPSofRMB1.06,1.86and2.41.Withreferencetothesectorvaluation,wesuggest2025PEof30xandraisethecorrespondingtargetpricetoRMB55.8(from46.25).“Overweight”ratingmaintained. Tongkun(601233):OW,TP@RMB14.30↓ [Rating:OW(Prv:OW);TP:RMB14.30(Prv:RMB15.70);MP:RMB12.34;Mkt‐Cap:RMB29753mn] Becausethehightemperaturein2024Q3curbedtheproductionofPFY,welowerourforecastsoftheCompany’s2024‐2026EPSfromRMB0.98,1.11and1.54toRMB0.67,1.10and1.53.Withreferencetothe