The Fourth Blockchain International Summit in 2017 will kick off in Shanghai during August 15-16 to discuss some hot topics such as policy orientation, investment environment, technological innovation and application innovation of blockchain industry. In addition, the highest price of bitcoin registered 27,990 yuan by now and it will continue to hit new high, according to huobi.com, a bitcoin trading platform. Bitcoin has risen by over 200 percent since 2017 and grows by 40 percent just in August.
Analysts pointed out that bitcoin is a kind of digital currency based on blockchain technology, and significant surge in bitcoin price is expected to catch capitals’ attention on concept stocks related to blockchain.
As a result, concept stocks of blockchain saw remarkable change yesterday with the whole sector up by 3.79 percent. Four component stocks including Guangzhou Kingteller Technology Co., Ltd., YGSOFT INC., Feitian Technologies Co., Ltd. and Global Infotech Co., Ltd. grew by daily limit of 10 percent. Other individual stocks such as Nexgo Inc. (up by 7.86 percent), Shenzhen Forms Syntron Information Co.,Ltd. (up by 7.22 percent), Hundsun Technologies Inc. (up by 6.75 percent), Sunyard System Engineering Co., Ltd. (up by 5.35 percent), GRG Banking Equipment Co., Ltd. (up by 4.97 percent), Beijing Tongtech Co., Ltd. (up by 4.59 percent), and Brilliance Technology Co., Ltd. (up by 4.30 percent) witnessed sharp rise.
In terms of capital flow, market research center of Securities Daily learnt from statistics of Hithink RoyalFlush Information Network Co., Ltd. that 16 concept stocks of the sector totally attracted 692 million yuan yesterday. Net capitals flowing into some individual stocks like Hundsun Technologies Inc., YGSOFT INC., Feitian Technologies Co., Ltd., Global Infotech, Guangzhou Kingteller Technology, Sunyard System Engineering, Nexgo Inc. and GRG Banking Equipment were more than 10 million yuan.
By now, there have been 3 companies announcing interim reports. But only net profits attributed to parent company of Shenzhen Forms Syntron Information gained a year-on-year increase of 33.63 percent in the first half of this year. Besides the above-mentioned 3 companies, another 19 companies have released earnings preannouncement in interim reports, and 15 or nearly 80 percent of them forecasted growth. Hna Investment Group Co., Ltd., HyUnion Holding Co., Ltd. and Shenzhen Ysstech Info-Tech Co., Ltd. predicted that their net profits attributed to parent companies will double year on year in the first six months of 2017.
As for future development of the sector, Minsheng Securities thought that China’s technological giants take the advantage of blockchain technology and put emphasis on developing consumer finance. Thanks to the accelerating upgrading of consumption, consumer finance market will enjoy bullish news. It is suggested to pay attention to companies related to blockchain technology and application. Nexgo Inc., Feitian Technologies, Shenzhen Ysstech Info-Tech, Shenzhen Forms Syntron Information and Sunyard System Engineering are recommended.
With promising future of the industry, leading stocks are also favored by institutions. Statistics showed that 14 of the 26 concept stocks received “buy” or “overweight” ratings from institutions in latest 30 days. 6 leading companies like Beijing Shiji Information Technology Co., Ltd., Heilongjiang Agriculture Company Limited, Shenzhen Forms Syntron Information, Beijing Tongtech, Hundsun Technologies Inc. and Guangdong Vanward New Electric are believed to be bullish by 3 or over 3 institutions and are potential to rise in the future.
Translated by Vanessa Chen
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