[Today's Guide]
> Bank of Jiangsu to listed soon, relevant companies to see equity appreciation
> Media focuses on robot industry, energy conservation and emission reduction policies to add stakes
> Refond Optoelectronics to acquire LT Photoelectricity, Golden Eagle to transform to new energy car industry
> MIG Technology to strengthen mobile marketing, Eastern Gold Jade to expand to jewelry financial industrial chain
[XFA Focus]
○ Bank of Jiangsu to listed soon, relevant companies to see equity appreciation
------
China Securities Regulatory Commission updated the pre-disclosure draft of the IPO prospectus of the Bank of Jiangsu on its website on June 12. The Bank of Jiangsu plans to issue less than 2,597.50 million shares. Its earning per share was 0.84 yuan and net asset value per share was 5.4 yuan last year.
Comment: It can be seen from the cases of China National Nuclear Power Co., Ltd. (601985.SH) and Guotai Junan Securities Co., Ltd. (601211.SH) that it just costs one month between official subscription and the updating of pre-disclosure material, so the Bank of Jiangsu might be issued soon. Such kind of new large-cap shares usually bring positive impact to “shadow stocks” in the secondary market. The stocks of Shenzhen Energy Group Co., Ltd. (000027.SZ) and Dazhong Transportation (Group) Co., Ltd. (600611.SH), holding shares of Guotai Junan Securities, see continuous surging recently; Zhejiang Zheneng Electric Power Co., Ltd. (600023.SH), developing similar business with China National Nuclear Power, also saw continuous soar to the daily 10 percent limit before. Statistics show that Jiangsu Huaxicun Co., Ltd. (000936.SZ), Black Peony (Group) Co., Ltd. (600510.SH), Jiangsu Hongtu High Technology Co., Ltd. (600122.SH) and Jiangsu Wuzhong Industrial Co., Ltd. (600200.SH) hold 249 million shares, 110 million shares, 100 million shares and 52 million shares of the Bank of Jiangsu, respectively.
[XFA Selection]
○ China Securities Regulatory Commission solicits public opinions on the revision of the management methods of margin trading and short selling business. Countercyclical adjustment mechanism will be built to ensure a steady and orderly market.
○ National Integrated Circuit Industrial Investment Fund indicated on the industry annual meeting held on June 11 that it will support the mergers and acquisitions of packaging industry.
○ XFA confirms from Hongling Capital E-commerce Co., Ltd. that it plans to achieve back-door listing through Fujian Sunnada Communication Co., Ltd (002417.SZ) and Sunnada Communication will resume trading at the beginning of July.
○ China Shipbuilding Industry Company Limited (601989.SH) indicates in its trading suspension announcement that it plans to participate in the power business platform company built by its substantial shareholder with its power-related asset.
○ China Business Journal reports that the newly established National Power Investment Corporation will accelerate capital operation and push forward the listing of nuclear assets.
○ The first case of third-generation human-to-human transmitted MERS patient occurs in Korea. By June 14, 145 patients were made definite diagnosis, while 14 of them died.
[Industry Information]
○ Media focuses on robot industry, thirteenth five-year plan to completed within year
------
CCTV News reported the industrial development of robot on June 13 and pointed out that the number of China’s industrial robot will exceed other countries in the world by 2017. Under the push of factors like increasing human cost, etc., domestic robot industry market will embrace great demand. Vice-minister of Industry and Information Technology recently indicated that the thirteenth five-year plan for robot industry will be completed by end-October this year.
Comment: As one of the 10 key projects of “Made in China 2025”, robot has seen big push from all local governments. By 2020, the output value of domestic robot and relevant systems will reach 100.00 billion yuan, according to institutional measurement. As for listed companies, Han's Laser Technology Industry Group Co., Ltd. (002008.SZ) recently announces to raise 5.2 billion yuan through private placement to invest in robot automation equipment, etc.; Chengdu Jasic Technology Company under Shenzhen Jasic Technology Co., Ltd. (300193.SZ) has achieved substantial progress in wielding robot area and the prototype robot developed by it has been put into production in small scale and applied in customer’s production site; Jiangsu Yawei Machine Tool Co., Ltd. (002559.SZ) cooperates with KUKA Roboter, an international leading robot manufacturer, to expand to the manufacturing of multi-joints robot.
○ China actively promotes global climate negotiation, energy conservation and emission reduction policies to add stakes
------
Chinese Premier Li Keqiang hosted the Meeting of National Leadership Team for Dealing with Climate Change and Energy Conservation and Emission Reduction on June 12 and gave a keynote speech. Li pointed out that China will move towards the goal of reaching the peak of carbon emission around 2030 or earlier, continue to actively increasing efforts in energy conservation and emission reduction, largely cut carbon dioxide emissions per unit of GDP and further increase the proportion of non-fossil energy in primary energy consumption and the growing stock of forest.
Comment: Energy conservation and emission reduction as well as dealing with climate change are important content of this year’s government work report and they are embracing intensive policy support. As for listed companies, Top Resource Conservation Engineering Co., Ltd. (300332.SZ) is principally engaged in energy performance contracting and cogeneration project business. The PPP+P2P mode created by the company will effectively contribute to its business expansion; Central Plains Environment Protection Co., Ltd. (000544.SZ) , principally engaged in sewage treatment, is now acquiring the sewage treatment asset of the group through private placement to add stakes in environmental protection treatment. Moreover, photovoltaic, wind power and nuclear power industrial chain will also benefit from the adjustment of energy structure in the long run.
[Announcement Interpretation]
○ Refond Optoelectronics to acquire LT Photoelectricity to expand industrial chain
------
Shenzhen Refond Optoelectronics Co., Ltd. (300241.SZ) plans to acquire 85 percent equities of Shenzhen LT Photoelectricity Technology Co., Ltd. with 200 million yuan by issuing shares at 11.56 yuan per share and paying in cash. Meanwhile, the company plans to raise a supporting fund of 200 million yuan from TCL, staff shareholding plan, etc. at the same the offering price.
LT Photoelectricity is engaged in the manufacturing and sales of the packaging of backlight LED products. The counterparty promises that the total net profit of LT Photoelectricity from 2015 to 2017 will be no less than 90.00 million yuan.
○ Golden Eagle to transform to new energy car industry with RMB1.6 bln
------
Zhejiang Golden Eagle Co., Ltd. (600232.SH) plans to raise 1.6 billion yuan by issuing 253 million shares to Zhejiang Golden Eagle Group Co., Ltd., its controlling shareholder, Phase I staff shareholding plan of Golden Eagle, etc. at 6.33 yuan per share through private placement to invest in new energy car power battery project, new energy car power assembly project and to supplement working capital.
Golden Eagle, principally engaged in the manufacturing and sales of textile and food machinery, sees slowing industrial growth and enters new energy car industry to achieve strategic adjustment.
○ MIG Technology to launch acquisition combination and strengthen mobile marketing
------
MIG Technology INC. (300242.SZ) plans to acquire 100 percent equities of Beijing Yingmob Interaction Technology Co., Ltd. with 1.0 billion yuan and 89 percent equities of Shenzhen AdminYun Technology Co., Ltd. with 330.00 million yuan, respectively, and the offering prices are 34.9 yuan per share. Meanwhile, it plans to raise a supporting fund of 490 million yuan at 38.04 yuan per share through private placement from the asset management plan of BOSC Asset Management Co., Ltd.
Yingmob Interaction is principally engaged in mobile Internet advertisement business. It promises that its net profit from 2015 to 2017 will reach 71.50 million yuan, 93.30 million yuan and 120.00 million yuan, respectively. AdminYun, principally engaged in the promotion of mobile advertisement, promises that its net profit from 2015 to 2017 will reach 30.00 million yuan, 39.00 million yuan and 50.70 million yuan.
○ Eastern Gold Jade to raise over RMB8.0 bln to expand to jewelry financial industrial chain
------
Eastern Gold Jade Co., Ltd. (600086.SH) plans to raise 8.0 billion yuan by issuing 310 million shares at 25.86 yuan per share through private placement to invest in “Internet Plus” jewelry industry comprehensive service platform project, establish Shenzhen Gold Jade Small Loans Company Limited, increase capital in Shenzhen Dingtai Pawnshop Company, establish Yunnan Gold Jade Capital Management Company Limited and pay off loans of financial institutions.
○ Wangsu Science & Technology to raise RMB3.6 bln through private placement to add stakes in Cloud project, staff shareholding plan to involved
------
Wangsu Science & Technology Co., Ltd. (300017.SZ) plans to raise a supporting fund of 3.6 billion yuan by issuing 81.91 million shares to Xingzheng Securities Asset Management Company Limited, JT Asset Management Company Limited, Bosera Asset Management Co., Ltd., Ping’an Asset Management Company Limited, Taikang Asset Management Company Limited, etc. at 43.95 yuan per share. All the raised funds will be invested in community cloud project, overseas CDN project and Cloud security project. The client of the targeted asset management plan, to be set by Xingzheng Securities Asset Management, is the company’s Phase I staff shareholding plan.
○ Yinhe Electronics to invest in charging equipment of new energy car with RMB2.36 bln
------
Jiangsu Yinhe Electronics Co., Ltd. (002519.SZ) plans to raise 2.36 billion yuan through private placement by issuing shares to Yang Xiaoling, Tibet Winfast Investment & Development Company, Yinhe No.1 and No.2 Asset Management Plans, etc. at 14.87 yuan per share (after ex-right and ex-dividend) to invest in the construction and operation of new energy car charging stations based on “Internet Plus”, industrialization of critical parts of new energy car, industrialization of intelligent electromechanical equipment and management system, and the construction of R&D center. Among subscribers, Yang Xiaoling is the wife of Zhang Hong, vice-president of the company, Yinhe No.1 Asset Management Plan is the company’s staff shareholding plan and Yinhe No.2 Asset Management Plan is subscribed by controlling shareholders.
○ Kuaijishan Shaoxing Rice Wine to acquire two wine manufacturers with over RMB1.8 bln to expand production of yellow rice wine
------
Kuaijishan Shaoxing Rice Wine Co., Ltd. (601579.SH) plans to raise 1.80 billion yuan by issuing 130 million shares at 13.86 yuan per share to invest in the technical modification project of packaging logistics, acquire 100 percent equities of Wuzhanmao Wine Company Limited, acquire 100 percent equities of Shaoxin Tangsong Wine Company Limited, supplement working capital and pay off loans. Jinggong Group Co., Ltd., controlling shareholder of the company, Kuaijishan Phase I staff shareholding plan, etc. will subscribe the private placement.
[Financial Reports Express]
○ Semiyearly report of Highsun to propose high share conversion and dividend
------
The board of directors of Guangdong Highsun Group Co., Ltd. (000861.SZ) proposes a 9-for-10 conversion of capital surplus into shares combined with 1 bonus share and 1 yuan dividend for every 10 shares.
[Weekly Review]
○ Securitization of state-owned assets speeds up, A-share market still sees surging momentum
------
After surged for sixth consecutive trading days, Xinxing Ductile Iron Pipes Co., Ltd. (000778.SZ) announced trading suspension for planning major issues last weekend. Xinxing Ductile Iron Pipes is controlled by Xinxing Cathay International Group Co., Ltd., which is one of the six central enterprises piloting state-owned asset reform. This move undoubtedly makes the hunting of investment opportunity in state-owned asset reform even hotter.
Last week, XFA highlighted the latest status of state-owned asset reform in “XFA Focus” and pointed out that institutions were paying great attentions to stocks related to state-owned asset reform. An important reason leading to 5,000 points of Shanghai Composite Index is that lots of listed companies improve profits through expansion of asset securitization, resulting in higher stock price and market value. Those state-owned listed companies taking lead in asset securitization have seen benefit, and more state-owned listed companies have not started yet. From this prospective, the A-share market still sees surging momentum. The launch of important documents for state-owned asset reform is getting closer. More state-owned assets will be involved in the tide of securitization and the investment opportunity amid that is self-evident.
However, one should also keep calm in the investment of stocks related to state-owned asset reform. For companies whose market values far exceed their advanced international peers, risks would be larger than investment opportunities.
> Bank of Jiangsu to listed soon, relevant companies to see equity appreciation
> Media focuses on robot industry, energy conservation and emission reduction policies to add stakes
> Refond Optoelectronics to acquire LT Photoelectricity, Golden Eagle to transform to new energy car industry
> MIG Technology to strengthen mobile marketing, Eastern Gold Jade to expand to jewelry financial industrial chain
[XFA Focus]
○ Bank of Jiangsu to listed soon, relevant companies to see equity appreciation
------
China Securities Regulatory Commission updated the pre-disclosure draft of the IPO prospectus of the Bank of Jiangsu on its website on June 12. The Bank of Jiangsu plans to issue less than 2,597.50 million shares. Its earning per share was 0.84 yuan and net asset value per share was 5.4 yuan last year.
Comment: It can be seen from the cases of China National Nuclear Power Co., Ltd. (601985.SH) and Guotai Junan Securities Co., Ltd. (601211.SH) that it just costs one month between official subscription and the updating of pre-disclosure material, so the Bank of Jiangsu might be issued soon. Such kind of new large-cap shares usually bring positive impact to “shadow stocks” in the secondary market. The stocks of Shenzhen Energy Group Co., Ltd. (000027.SZ) and Dazhong Transportation (Group) Co., Ltd. (600611.SH), holding shares of Guotai Junan Securities, see continuous surging recently; Zhejiang Zheneng Electric Power Co., Ltd. (600023.SH), developing similar business with China National Nuclear Power, also saw continuous soar to the daily 10 percent limit before. Statistics show that Jiangsu Huaxicun Co., Ltd. (000936.SZ), Black Peony (Group) Co., Ltd. (600510.SH), Jiangsu Hongtu High Technology Co., Ltd. (600122.SH) and Jiangsu Wuzhong Industrial Co., Ltd. (600200.SH) hold 249 million shares, 110 million shares, 100 million shares and 52 million shares of the Bank of Jiangsu, respectively.
[XFA Selection]
○ China Securities Regulatory Commission solicits public opinions on the revision of the management methods of margin trading and short selling business. Countercyclical adjustment mechanism will be built to ensure a steady and orderly market.
○ National Integrated Circuit Industrial Investment Fund indicated on the industry annual meeting held on June 11 that it will support the mergers and acquisitions of packaging industry.
○ XFA confirms from Hongling Capital E-commerce Co., Ltd. that it plans to achieve back-door listing through Fujian Sunnada Communication Co., Ltd (002417.SZ) and Sunnada Communication will resume trading at the beginning of July.
○ China Shipbuilding Industry Company Limited (601989.SH) indicates in its trading suspension announcement that it plans to participate in the power business platform company built by its substantial shareholder with its power-related asset.
○ China Business Journal reports that the newly established National Power Investment Corporation will accelerate capital operation and push forward the listing of nuclear assets.
○ The first case of third-generation human-to-human transmitted MERS patient occurs in Korea. By June 14, 145 patients were made definite diagnosis, while 14 of them died.
[Industry Information]
○ Media focuses on robot industry, thirteenth five-year plan to completed within year
------
CCTV News reported the industrial development of robot on June 13 and pointed out that the number of China’s industrial robot will exceed other countries in the world by 2017. Under the push of factors like increasing human cost, etc., domestic robot industry market will embrace great demand. Vice-minister of Industry and Information Technology recently indicated that the thirteenth five-year plan for robot industry will be completed by end-October this year.
Comment: As one of the 10 key projects of “Made in China 2025”, robot has seen big push from all local governments. By 2020, the output value of domestic robot and relevant systems will reach 100.00 billion yuan, according to institutional measurement. As for listed companies, Han's Laser Technology Industry Group Co., Ltd. (002008.SZ) recently announces to raise 5.2 billion yuan through private placement to invest in robot automation equipment, etc.; Chengdu Jasic Technology Company under Shenzhen Jasic Technology Co., Ltd. (300193.SZ) has achieved substantial progress in wielding robot area and the prototype robot developed by it has been put into production in small scale and applied in customer’s production site; Jiangsu Yawei Machine Tool Co., Ltd. (002559.SZ) cooperates with KUKA Roboter, an international leading robot manufacturer, to expand to the manufacturing of multi-joints robot.
○ China actively promotes global climate negotiation, energy conservation and emission reduction policies to add stakes
------
Chinese Premier Li Keqiang hosted the Meeting of National Leadership Team for Dealing with Climate Change and Energy Conservation and Emission Reduction on June 12 and gave a keynote speech. Li pointed out that China will move towards the goal of reaching the peak of carbon emission around 2030 or earlier, continue to actively increasing efforts in energy conservation and emission reduction, largely cut carbon dioxide emissions per unit of GDP and further increase the proportion of non-fossil energy in primary energy consumption and the growing stock of forest.
Comment: Energy conservation and emission reduction as well as dealing with climate change are important content of this year’s government work report and they are embracing intensive policy support. As for listed companies, Top Resource Conservation Engineering Co., Ltd. (300332.SZ) is principally engaged in energy performance contracting and cogeneration project business. The PPP+P2P mode created by the company will effectively contribute to its business expansion; Central Plains Environment Protection Co., Ltd. (000544.SZ) , principally engaged in sewage treatment, is now acquiring the sewage treatment asset of the group through private placement to add stakes in environmental protection treatment. Moreover, photovoltaic, wind power and nuclear power industrial chain will also benefit from the adjustment of energy structure in the long run.
[Announcement Interpretation]
○ Refond Optoelectronics to acquire LT Photoelectricity to expand industrial chain
------
Shenzhen Refond Optoelectronics Co., Ltd. (300241.SZ) plans to acquire 85 percent equities of Shenzhen LT Photoelectricity Technology Co., Ltd. with 200 million yuan by issuing shares at 11.56 yuan per share and paying in cash. Meanwhile, the company plans to raise a supporting fund of 200 million yuan from TCL, staff shareholding plan, etc. at the same the offering price.
LT Photoelectricity is engaged in the manufacturing and sales of the packaging of backlight LED products. The counterparty promises that the total net profit of LT Photoelectricity from 2015 to 2017 will be no less than 90.00 million yuan.
○ Golden Eagle to transform to new energy car industry with RMB1.6 bln
------
Zhejiang Golden Eagle Co., Ltd. (600232.SH) plans to raise 1.6 billion yuan by issuing 253 million shares to Zhejiang Golden Eagle Group Co., Ltd., its controlling shareholder, Phase I staff shareholding plan of Golden Eagle, etc. at 6.33 yuan per share through private placement to invest in new energy car power battery project, new energy car power assembly project and to supplement working capital.
Golden Eagle, principally engaged in the manufacturing and sales of textile and food machinery, sees slowing industrial growth and enters new energy car industry to achieve strategic adjustment.
○ MIG Technology to launch acquisition combination and strengthen mobile marketing
------
MIG Technology INC. (300242.SZ) plans to acquire 100 percent equities of Beijing Yingmob Interaction Technology Co., Ltd. with 1.0 billion yuan and 89 percent equities of Shenzhen AdminYun Technology Co., Ltd. with 330.00 million yuan, respectively, and the offering prices are 34.9 yuan per share. Meanwhile, it plans to raise a supporting fund of 490 million yuan at 38.04 yuan per share through private placement from the asset management plan of BOSC Asset Management Co., Ltd.
Yingmob Interaction is principally engaged in mobile Internet advertisement business. It promises that its net profit from 2015 to 2017 will reach 71.50 million yuan, 93.30 million yuan and 120.00 million yuan, respectively. AdminYun, principally engaged in the promotion of mobile advertisement, promises that its net profit from 2015 to 2017 will reach 30.00 million yuan, 39.00 million yuan and 50.70 million yuan.
○ Eastern Gold Jade to raise over RMB8.0 bln to expand to jewelry financial industrial chain
------
Eastern Gold Jade Co., Ltd. (600086.SH) plans to raise 8.0 billion yuan by issuing 310 million shares at 25.86 yuan per share through private placement to invest in “Internet Plus” jewelry industry comprehensive service platform project, establish Shenzhen Gold Jade Small Loans Company Limited, increase capital in Shenzhen Dingtai Pawnshop Company, establish Yunnan Gold Jade Capital Management Company Limited and pay off loans of financial institutions.
○ Wangsu Science & Technology to raise RMB3.6 bln through private placement to add stakes in Cloud project, staff shareholding plan to involved
------
Wangsu Science & Technology Co., Ltd. (300017.SZ) plans to raise a supporting fund of 3.6 billion yuan by issuing 81.91 million shares to Xingzheng Securities Asset Management Company Limited, JT Asset Management Company Limited, Bosera Asset Management Co., Ltd., Ping’an Asset Management Company Limited, Taikang Asset Management Company Limited, etc. at 43.95 yuan per share. All the raised funds will be invested in community cloud project, overseas CDN project and Cloud security project. The client of the targeted asset management plan, to be set by Xingzheng Securities Asset Management, is the company’s Phase I staff shareholding plan.
○ Yinhe Electronics to invest in charging equipment of new energy car with RMB2.36 bln
------
Jiangsu Yinhe Electronics Co., Ltd. (002519.SZ) plans to raise 2.36 billion yuan through private placement by issuing shares to Yang Xiaoling, Tibet Winfast Investment & Development Company, Yinhe No.1 and No.2 Asset Management Plans, etc. at 14.87 yuan per share (after ex-right and ex-dividend) to invest in the construction and operation of new energy car charging stations based on “Internet Plus”, industrialization of critical parts of new energy car, industrialization of intelligent electromechanical equipment and management system, and the construction of R&D center. Among subscribers, Yang Xiaoling is the wife of Zhang Hong, vice-president of the company, Yinhe No.1 Asset Management Plan is the company’s staff shareholding plan and Yinhe No.2 Asset Management Plan is subscribed by controlling shareholders.
○ Kuaijishan Shaoxing Rice Wine to acquire two wine manufacturers with over RMB1.8 bln to expand production of yellow rice wine
------
Kuaijishan Shaoxing Rice Wine Co., Ltd. (601579.SH) plans to raise 1.80 billion yuan by issuing 130 million shares at 13.86 yuan per share to invest in the technical modification project of packaging logistics, acquire 100 percent equities of Wuzhanmao Wine Company Limited, acquire 100 percent equities of Shaoxin Tangsong Wine Company Limited, supplement working capital and pay off loans. Jinggong Group Co., Ltd., controlling shareholder of the company, Kuaijishan Phase I staff shareholding plan, etc. will subscribe the private placement.
[Financial Reports Express]
○ Semiyearly report of Highsun to propose high share conversion and dividend
------
The board of directors of Guangdong Highsun Group Co., Ltd. (000861.SZ) proposes a 9-for-10 conversion of capital surplus into shares combined with 1 bonus share and 1 yuan dividend for every 10 shares.
[Weekly Review]
○ Securitization of state-owned assets speeds up, A-share market still sees surging momentum
------
After surged for sixth consecutive trading days, Xinxing Ductile Iron Pipes Co., Ltd. (000778.SZ) announced trading suspension for planning major issues last weekend. Xinxing Ductile Iron Pipes is controlled by Xinxing Cathay International Group Co., Ltd., which is one of the six central enterprises piloting state-owned asset reform. This move undoubtedly makes the hunting of investment opportunity in state-owned asset reform even hotter.
Last week, XFA highlighted the latest status of state-owned asset reform in “XFA Focus” and pointed out that institutions were paying great attentions to stocks related to state-owned asset reform. An important reason leading to 5,000 points of Shanghai Composite Index is that lots of listed companies improve profits through expansion of asset securitization, resulting in higher stock price and market value. Those state-owned listed companies taking lead in asset securitization have seen benefit, and more state-owned listed companies have not started yet. From this prospective, the A-share market still sees surging momentum. The launch of important documents for state-owned asset reform is getting closer. More state-owned assets will be involved in the tide of securitization and the investment opportunity amid that is self-evident.
However, one should also keep calm in the investment of stocks related to state-owned asset reform. For companies whose market values far exceed their advanced international peers, risks would be larger than investment opportunities.
Latest comments