Guotai Junan Securities：Morning Brief-20240815

Investment Ratings - The report maintains an "Overweight" rating for the cement sector and several specific companies including Gold Cup Electric Apparatus, Weixing, Fuyao Glass, Naipu Mining Machinery, and SMICS [4][5][9][10][11]. Core Insights - The demand for electromagnetic wire is rapidly increasing, benefiting Gold Cup Electric Apparatus, which is projected to have a net profit of RMB611 million in 2024 [4]. - The cement sector is experiencing a decline in sales volume and prices, but specific regions like Tibet are seeing growth due to infrastructure projects [5]. - The chemical sector has faced a decline in the market index, but certain chemicals have seen significant price increases, indicating potential opportunities [6]. - The fund market is showing a high-risk appetite with sector rotation strategies favoring electric power, public utilities, and other sectors [8]. Summary by Sections Top Recommendations - Gold Cup Electric Apparatus (002533): OW, TP@RMB10.36 with a forecasted net profit of RMB611 million for 2024 [4]. - Weixing (002003): OW, TP@RMB14.48 with an increase in EPS forecasts [9]. - Fuyao Glass (600660): OW, TP@RMB55.58 with a revenue increase of 19.12% year-on-year [10]. - Naipu Mining Machinery (300818): OW, TP@RMB26.27 benefiting from overseas market expansion [11]. - SMICS (688981): OW, TP@RMB62.50 with raised revenue forecasts due to market recovery [11]. Sector Ratings - Cement Sector: Overweight rating maintained despite overall market decline, with specific growth in Tibet [5]. - Chemical Sector: Noted price increases in key chemicals, indicating potential investment opportunities [6]. - Fund Market: High-risk appetite with sector rotation strategies favoring specific sectors [8]. Latest Reports - Weixing's revenue and profit exceeded expectations, leading to an increase in EPS forecasts [9]. - Fuyao Glass reported strong quarterly results, maintaining its target price and rating [10]. - Naipu Mining Machinery is positioned well due to the expansion of Chinese mining companies [11]. - SMICS is benefiting from the recovery in the global consumer market, leading to revised revenue forecasts [11].