[Cinda Consumption Jiang Wenqiang] Recommend Micro-cap Stocks with Solid Fundamentals

English summary

Micro-cap stocks represented by the CSI 2000 have corrected extremely severely under the previous style squeeze. With market style rebalancing now, they are expected to return to reasonable pricing. We have screened a batch of stocks with excellent business quality and solid earnings growth, whose valuations have already corrected to around 10X or below. # Zhongxin: Overseas, with new customer shipments/capacity ramp-up, Thailand sales continue to improve MoM (tonne profit stable). 2) Domestic competition landscape optimizes, company market share rises and profitability steadily improves. Q2 operating profit of 120 million yuan, Q3 expected to exceed 150 million yuan, nearly doubling YoY, Q4 further improving MoM and more than doubling YoY. Q3 results annualized valuation around 10X, corresponding to 8-9X for 2027. # Haers: H2 OEM orders grow strongly, H2 revenue expected to grow over 30%. With Thailand base capacity ramping, profitability continues to improve MoM (Q2 net margin of 6%, significantly lower than historical stable level), # Q3 expected to achieve operating profit of around 80 million yuan. ...