In the short term, we will continue to focus on the investment opportunities of "post disaster reconstruction". Affected by the El Nino event, Hubei, Anhui and other areas suffered from serious floods, and many cities reappeared "city watching the sea", which caused the government to attach great importance to or forced the construction of underground pipe corridors and sponge cities to speed up, Hanjian Heshan (bottom reversal of performance, lifting of the ban on some initial stocks and expectation of additional issuance), Longquan (high-end pipeline leader with multiple concepts of nuclear power and underground pipe gallery), Huaxin Cement (production capacity concentrated in two lakes, Hubei accounting for 56%), conch cement (production capacity concentrated in East China, Anhui and Hubei accounting for 37% and 11%), Yonggao, Nachuan, etc. are recommended.

From July 8 to 10, Guangzhou Construction Expo was successfully held. The exhibition is divided into four themes of "intelligence", "customization", "system" and "design", reflecting the future development direction of domestic home furnishing industry. This exhibition has attracted more than 2400 outstanding enterprises to participate, and brought many new products, such as intelligent door lock, intelligent clothes rack, "whole house customization", roof wall integration, etc. the industry has received a warm response. We continue to be optimistic about the investment opportunities of domestic home decoration industry under the background of consumption upgrading, focusing on AIA ceiling and Weixing new materials. In addition, last week, we attended the investor exchange meeting of China Jushi, and the high prosperity of glass fiber will continue. We continue to recommend Changhai Co., Ltd., the leader of products (with high performance and additional approval).

Core company recommendation logic:

1. Han jianheshan, the underrated leader of PCCP.

1) Orders reversed, with 1.47 billion new orders signed in 2016, a record high, and the performance of 2016-2017 ushered in an explosive period;

2) The major shareholder is a core enterprise in Fangshan District, Beijing, with strong strength, involving many high-quality assets such as real estate, finance, tourism, etc;

3) Secondary new stocks, which have risen 121% since listing, have risen 6% and 22% in recent 30 and 60 days, lagging behind the index of individual stocks and secondary new stocks in the same period. 4) In June, the ban on some initial stocks has been lifted, and there is an expectation of additional issuance, so the demand for short-term stock price is high.

2. Longquan Co., Ltd. is a high-end pipeline leader with multiple concepts of nuclear power and underground pipe gallery.

1) The company is in the leading position in PCCP and petrochemical / nuclear power pipe fittings, with huge medium and long-term growth space;

2) The valuation is reasonable and there is potential for improvement. PCCP bidding is rapidly released, and its performance is expected to return to a historical high. The bidding of nuclear power equipment begins, and there is an opportunity to improve the industry valuation. It is estimated that the EPS of the company in 2016-2018 will be 0.43 yuan / share, 0.51 yuan / share and 0.61 yuan / share respectively, and last week's closing price is 16xpe = 30.5 times; 3) the margin of safety is high, with the acquisition price of additional issuance of 15 yuan / share, the issuance price of additional issuance of supporting funds to senior executives of 17.19 yuan / share, and the current share price of 13.12 yuan / share.

3. Dongfang Yuhong, through the cycle, high unlock, equity incentive landing, active layout.

1) Excellent management, outstanding growth under PS strategy, good sales growth momentum in April and may;

2) The second phase of equity incentive is implemented, the average growth rate of performance in the next three years is 25%, and the scope is extended to the middle level, effectively promoting the enthusiasm of employees;

3) For undervalued varieties, EPS is expected to be 1.12 yuan, 1.37 yuan and 1.71 yuan respectively in 16-18 years, and PE = 17 times after last week's closing.

4. Changhai shares, the issuance was approved, devaluation is beneficial to export, maintain "buy".

1) At the beginning of the year, we proposed to postpone the release of production capacity. The US real estate, automotive thermoplastic products, domestic environmental protection, infrastructure and other fields exceeded expectations, and the high boom is expected to continue into the middle of 2017. In the future, the United States will postpone the interest rate increase, the global fiscal stimulus and other means will continue the demand, especially in the field of low-carbon environmental protection, which will be reflected in the demand elasticity of glass fiber composite materials. With the increasingly high-end products and the continuous improvement of costs, it is inevitable that the profit of glass fiber tons will exceed the peak of 2008. In the short run, the devaluation of RMB will increase the export and exchange earnings of glass fiber industry;

2) In the past 16 years, relying on the recovery of traditional fields and new product volume, the company is expected to achieve more than 30% growth, and is also expanding new fields, such as photoresist. We expect EPS (before dilution) to be 1.49 yuan, 1.79 yuan and 2.05 yuan respectively in 16-18 years. Last week it closed at 16xpe = 28.2. Keep buying.

5. AIA ceiling is now gradually fulfilling the double inflection point of operation and power proposed in canvassing last October, which has doubled, but there is still a lot of space in the future, and the midline will continue to recommend it.

1) Business inflection point established, the next three years sustained high growth: distribution system restructuring and expansion, Omni channel marketing (Internet, fine decoration) reflect the effect; Kewo series of new products launched, the second half is expected to rise. It is estimated that eps2.05, 2.97 and 4.14 yuan in 16-18 years, corresponding to 35, 24 and 17 times, PEG = 0.79;

2) Dynamic inflection point: employee stock ownership landing, leverage 2:1, large shareholders provide minimum income. The company has set up joint ventures such as smart home, gypsum board ceiling and integrated wall since this year, and its business will gradually start in the second half of the year.