Main points of investment

Industry point of view: in July, the performance forecast disclosure peak, the performance of stocks that exceed expectations are expected to have a better performance, worthy of attention. The July simulation portfolio mainly considers the reported results, and there are stocks whose performance may exceed expectations. The specific targets and simulated positions of the simulation portfolio are as follows:Jiadian shares(30%)、To become a share(20%)、Gold card intelligence(20%)、Shanghai mechanical and electrical(15%)、Guangri shares(15%)。

Jiadian Co., Ltd. (nuclear power): downstream demand recovery, the industry pattern is improving, the company's market share has increased, resulting in double growth in performance. In 2018, 2019Q1 net profit of 279 million yuan (+ 131%), 97 million yuan (+ 87%), continued to exceed expectations. The company said that the current production and operation conditions are good, and the workload of workers is full. At the same time, the company's two main helium fans for fourth-generation nuclear power were delivered in the second quarter. We believe that the company's performance may exceed expectations, the current market value of 4.9 billion yuan, corresponding to 2019 about 10 times, focus on recommendation.

Mai Wei shares (Photovoltaic): core customers are of high quality and sufficient orders on hand. 2019Q1, the company achieved operating income of 300 million, an increase of 58.4% over the same period last year, and a net profit of 60 million, an increase of 26.6% over the same period last year. The company has worked withTrina light energy、JinkoSolar Holding Co Ltd、Ates., Longji Leye and other enterprises to establish long-term cooperative relations. As of 2018H1, the company has about 2.2 billion orders on hand (revenue of 790 million yuan in 2018). Coupled with new orders in the second half of the year, the company has plenty of orders on hand. On the basis of existing photovoltaic equipment, the company has entered the field of upstream and downstream photovoltaic equipment such as photovoltaic laser equipment, stacked tile module equipment, and entered the field of OLED display equipment. As of 2018, new business-related orders exceeded 300 million. The growth rate of the company's performance is likely to accelerate, with a current market capitalization of 6.6 billion yuan, corresponding to about 22 times of PE in 2019.

Gold card intelligence (Internet of things): the trend of intelligence and networking of gas meters is obvious, the price of a single meter is rising, and the threshold is also gradually raised, resulting in more benefits from the leading enterprises in the industry. The company shipped 540000 units of NB in 2018 and is expected to be close to 2.5 million in 2019. The proportion of revenue is expected to increase from less than 10% in 2018 to more than 25% in 2019, leading to rapid revenue growth and will be the main focus in the next few years. The current market capitalization of the company is 7.6 billion yuan, corresponding to only 13 times of PE in 2019, which is the lowest level in the company's history.

Shanghai Mechatronics and Guangri Co., Ltd. (elevator): since 2019, the output growth rate of the elevator industry has maintained more than double digits, the highest level since 2015. Production of 357000 units in the first five months of 2019, an increase of 17% over the same period last year, contributed to the recovery of the industry's performance. Shanghai Mechatronics, as a leading enterprise in the domestic elevator industry, is expected to benefit from the recovery of the industry, with a current market capitalization of 17 billion yuan, corresponding to about 13 times of PE in 2019. Guangri shares benefit from the rebound in the performance of the joint venture, the rapid growth of investment income, the current market capitalization of 6.7 billion yuan, PB about 0.91 times, corresponding to 2019 PE about 17 times.

Risk hint: the performance is lower than the expected risk.