[Today’s Guide]
> Social Security Fund favors Ant Financial, Internet-based finance sector to see opportunities
> Science and Technology Industry for National Defense 2025 to release, aeroengine to enjoy priority
> Ringpu Bio-technology to acquire two pharmaceutical companies, Highlander Digital Technology to acquire Highlander Laolei Ocean Technology
> MTC to develop Internet TV, Hongli Opto-Electronic to propose high share dividend
[XFA Focus]
○ Social Security Fund favors Ant Financial, Internet-based finance sector to see opportunities
------
It is learnt from the Asset Management Association of China (AMAC) Summer Forum convened on June 18 that the first direct investment of the national social security fund was made in Ant Financial. It obtained 5 percent shares of Ant Financial with a contribution of about 10 billion yuan. The valuation of Ant Financial is about 200 billion yuan based on this. Wang Zhongmin, Vice Chairman of the National Council for Social Security Fund, indicated that the Internet-based finance enjoys multiplied valuation in the Chinese securitization market. It is also reported that the MYbank under Alibaba Group will open on June 25. The backdoor listing of Hongling Capital through Fujian Sunnada Communication Co., Ltd. (002417.SZ) will be announced in end-June and it is expected to resume trading in early-July.
Comment: With the improvement of the credit investigation system and the maturing big data, face recognition and other technologies, the Internet-based finance, which used to be under barbarian growth, has been favored by capitals from various channels. Panda Financial Holding Corp., Ltd. (600599.SH) announced the plan on investing in Internet-based finance recently and its stock price soared by the daily limit of 10 percent, which shows the preference of the market to the industry. Among other listed companies, Wenzhoudai, which was invested by Zhejiang Baoxiniao Garment Co., Ltd. (002154.SZ), ranks high in the domestic online loan platform. The ‘Jiayuan Cloud Loan’ business of Shenzhen Worldunion Properties Consultancy Incorporated (002285.SZ) is developing rapidly and is forming a whole industrial chain covering the property transaction cycle.
[XFA Selection]
○ The Ministry of Commerce indicated on June 18 that the foreign trade industry faces difficulties since the beginning of this year and more policies to support foreign trade will be introduced.
○ The National Development and Reform Commission (NDRC) held a video and telephone conference on promoting the ecological civilization construction. It requires accelerating the preparation of implementation plans on a mechanism for ecological compensation.
○The National Bureau of Statistics (NBS) unveiled the home prices in large-and middle-sized cities for May. The prices of new commodity homes in Shenzhen saw a surge of 6.7% on a monthly basis, setting a new high.
○ Alibaba and Foxconn made strategic capital injection into SoftBank’s robot subsidiary to promote the development and application of the emotional robot, Pepper.
○ The website of the China Securities Regulatory Commission (CSRC) released the IPO prospectus of Zhoushan Port Co., Ltd. and other two companies on June 18 evening.
[Industry Information]
○ Science and Technology Industry for National Defense 2025 to release, aeroengine to enjoy priority
------
Xu Dazhe, Director of the State Administration of Science, Technology and Industry for National Defense, indicated recently that it will promote the equipment upgrading in China in combination with the preparation of the ‘Science and Technology Industry for National Defense 2025’ and the 13th Five-year Plan on the civil and military integration in the science and technology industry. As a pillar in the state advanced manufacturing industry, the national defense industry will play a unique role in the Made in China 2025 strategy.
Comment: As the advanced representation of the national defense industry, the aeroengine is one of the ten key projects in the Made in China 2025 strategy and will be the breakthrough in the Science and Technology Industry for National Defense 2025. The preparation of the Science and Technology Industry for National Defense 2025 and the civil and military integration plan will further promote the development of the aeroengine industry. It is expected that the demand for aeroengines and gas turbine will succeed 2 trillion yuan in the following 20 years. The market demand for components for engines and super alloy materials will see rapid expansion. Among listed companies, Sichuan Chengfa Aero Science & Technology Co., Ltd. (600391.SH) is principally engaged in the manufacturing of components to engines. AVIC Aviation Engine Corporation Plc. (600893.SH) is principally engaged in the assembling of engines. Beijing Cisri-gaona Materials & Technology Co., Ltd. (300034.SZ) and Fushun Special Steel Co., Ltd. (600399.SH) produce super alloy materials.
○ Ministry of Transport to promote intelligent transportation projects, hundreds of billions of yuan to invest in ten years
------
The Ministry of Transport issued a circular on June 18, requiring speeding up in promoting the construction of demonstration projects in the application of urban intelligent public transportation. The circular set out the progress of the construction and proposed to complete the construction of the framework of the pilot projects in the first 10 cities by the end of 2015. The circular also required facilitating the deep application of the mobile Internet, the Internet of Things, big data, cloud computing and other new generation of information technology in the operation, service and management of urban public transportation and striving to build a comprehensive, efficient, accurate and reliable urban public transportation information services system to improve the intelligence level of urban public transportation.
Comment: Facing the increasing crowd urban traffic conditions, the intelligent transportation is becoming an effective means. It is estimated that the investment in the domestic intelligent transportation will reach 100 billion yuan in the following 10 years. Among listed companies, China Shipping Network Technology Co., Ltd. (002401.SZ) is a leader in the domestic intelligent transportation industry. With the implementation of the reform of China Shipping (Group) Company, the company is expected to see more opportunities for expansion. Enjoyor Co., Ltd. (300020.SZ) provides the comprehensive management and control platform for urban intelligent transportation and other products. Institutes believe that the company is transforming from a project-based company into a platform-based operation company.
[Announcement Interpretation]
○ Ringpu Bio-technology to acquire two pharmaceutical companies to build industrial cluster of biological products
------
Tianjin Ringpu Bio-technology Co., Ltd. (300119.SZ) plans to acquire 65 percent equities of South China Biological Medicine Company Limited with 211 million yuan and acquire 36 percent equities of Hunan Sinoland Pharmaceutical Company Limited with 73.64 million yuan through private placement (its shareholding in the company increases to 92 percent); meanwhile, it plans to raise a supporting fund of 284 million yuan through private placement from substantial shareholder Li Shoujun, the company’s staff shareholding plan, etc. to pay the cash needed by the transaction, invest in the business projects of above two pharmaceutical companies. The offering prices are both 16.02 yuan per share.
Comment: Ringpu Bio-technology will own the product resources of H5 avian influenza inactivated vaccine through acquisition to make up its product vacancy as the main supplier of domestic poultry vaccine.
○ Highlander Digital Technology to acquire Highlander Laolei Ocean Technology to expand ocean informatization
------
Beijing Highlander Digital Technology Co., Ltd. (300065.SZ) plans to acquire 100 percent equities of Shanghai Highlander Laolei Ocean Technology Company Limited with 550 million yuan by issuing 28.71 million shares at 19.16 yuan per share through private placement. Highlander Laolei Ocean Technology is the company’s oceanographic survey system solution provider and mainly provides integrated and technical service of global high-end oceanographic survey instrument system. Its product, technology and service mainly cover areas like physical oceanography, marine charting, underwater engineering, etc.; it also owns development ability in ocean information data processing software.
The underlying company promises that its net profit from 2015 to 2018 will be no less than 28.40 million yuan, 32.00 million yuan, 33.60 million yuan and 35.30 million yuan, respectively. The net profit of Highlander Digital Technology in 2014 recorded 18.07 million yuan. Upon completion of transaction, the company will form a development structure principally engaged in the intellectualization of navigation and the informatization of marine monitoring.
○ MTC to develop Internet TV, Oriental Pearl, SMG and Qingdao Haier involved in private placement
----
Shenzhen MTC Co., Ltd. (002429.SZ) plans to raise 3,671 million yuan by issuing 297 million shares to Shanghai Oriental Pearl (Group) Co., Ltd. (600832.SH), Shanghai Media & Entertainment Group (SMG) and Qingdao Haier Co., Ltd. (600690.SH) at 12.36 yuan per share through private placement to invest in the joint-operation of Internet TV business. Meanwhile, the company has signed strategic cooperation agreement with Oriental Pearl to together build a business mode of Internet TV ecosphere integrating content, channel, platform, terminal and application services.
Comment: After this private placement, the company will offset its weakness in content resources and Internet TV operation and will transform from an electronic manufacturer to an Internet TV business joint operator integrating advantages in content, software, hardware, etc.
○ Person acting in concert with controlling shareholder of Kondarl to overweight
------
Ji Shengzhi, person acting in concert with Huachao Group, controlling shareholder of Shenzhen Kondarl (Group) Co., Ltd. (000048.SZ), bought 1,718,900 shares of the company at an average price of 20.73 yuan per share between June 16 and 17, indicating an amount of 35.63 million yuan. Ji plans to acquire no more than 1.81 percent of the company’s total share capital in next 12 months.
[Companies Hotspot]
○ Substantial shareholder of Winsan Medical Science and Technology to participate in equity crowd-funding platform to develop Internet finance
------
an equity crowd-funding platform participated by Shanghai Jiuchuan Investment Company (substantial shareholder of Winsan (Shanghai) Medical Science and Technology Co., Ltd. (600767.SH)), was officially established on June 18. Meanwhile, the platform has signed strategic cooperation agreement with Shanghai Equity Trading Center, indicating that Jiuchuan Investment has started the first step towards its transformation of Internet finance. Since participation in the company, Jiuchuan Investment actively pushes forward the company’s debt reorganization and business transformation. The market expects that it can continue to build Internet finance business on the platform of listed company.
[Financial Reports Express]
○ Hongli Opto-Electronic forecasts profit growth and plans high share dividend
------
Guangzhou Hongli Opto-Electronic Co., Ltd. (300219.SZ) forecasts that its net profit in the first half of 2015 sees a year-on-year growth of 60~80 percent and proposes a 15-for-10 conversion of capital surplus into shares.
[Trading Alarms]
○ Nine new stocks including Wondfo Biotech start subscription on June 19
------
Guangzhou Wondfo Biotech Co., Ltd. (300482.SZ) issues shares at 16 yuan per share with an up-limit per account of 8,500 shares; Henan Kedi Dairy Co., Ltd. (002770.SZ) issues shares at 6.85 yuan per share with an up-limit per account of 27,000 shares; Hengtong Logistic Co., Ltd. (732223.SH) issues shares at 8.31 yuan per share with an up-limit per account of 12,000 shares; JCHX Mining Management Co., Ltd. (732979. SH) issues shares at 17.19 yuan per share with an up-limit per account of 38,000 shares; Harbin Zhongfei New Technology Co., Ltd. (300489.SZ) issues shares at 17.56 yuan per share with an up-limit per account of 4,500 shares; Xi'an Sunresin New Materials Co., Ltd (300487.SZ) issues shares at 14.83 yuan per share with an up-limit per account of 8,000 shares; Shanxi Oriental Material Handline Co., Ltd. (300486.SZ) issues shares at 8.94 yuan per share with an up-limit per account of 13,500 shares; Puyang Huicheng Electronic Material Co., Ltd. (300481.SZ) issues shares at 9.13 yuan per share with an up-limit per account of 8,000 shares; Zhejiang Tiancheng Controls Co., Ltd. (732085. SH) issues shares at 7.27 yuan per share with an up-limit per account of 10,000 shares.
Maximum subscription needs 1.54 million yuan. Institutions recommend Wondfo Biotech as first choice. The company is principally engaged in fast diagnosis reagent, etc.
> Social Security Fund favors Ant Financial, Internet-based finance sector to see opportunities
> Science and Technology Industry for National Defense 2025 to release, aeroengine to enjoy priority
> Ringpu Bio-technology to acquire two pharmaceutical companies, Highlander Digital Technology to acquire Highlander Laolei Ocean Technology
> MTC to develop Internet TV, Hongli Opto-Electronic to propose high share dividend
[XFA Focus]
○ Social Security Fund favors Ant Financial, Internet-based finance sector to see opportunities
------
It is learnt from the Asset Management Association of China (AMAC) Summer Forum convened on June 18 that the first direct investment of the national social security fund was made in Ant Financial. It obtained 5 percent shares of Ant Financial with a contribution of about 10 billion yuan. The valuation of Ant Financial is about 200 billion yuan based on this. Wang Zhongmin, Vice Chairman of the National Council for Social Security Fund, indicated that the Internet-based finance enjoys multiplied valuation in the Chinese securitization market. It is also reported that the MYbank under Alibaba Group will open on June 25. The backdoor listing of Hongling Capital through Fujian Sunnada Communication Co., Ltd. (002417.SZ) will be announced in end-June and it is expected to resume trading in early-July.
Comment: With the improvement of the credit investigation system and the maturing big data, face recognition and other technologies, the Internet-based finance, which used to be under barbarian growth, has been favored by capitals from various channels. Panda Financial Holding Corp., Ltd. (600599.SH) announced the plan on investing in Internet-based finance recently and its stock price soared by the daily limit of 10 percent, which shows the preference of the market to the industry. Among other listed companies, Wenzhoudai, which was invested by Zhejiang Baoxiniao Garment Co., Ltd. (002154.SZ), ranks high in the domestic online loan platform. The ‘Jiayuan Cloud Loan’ business of Shenzhen Worldunion Properties Consultancy Incorporated (002285.SZ) is developing rapidly and is forming a whole industrial chain covering the property transaction cycle.
[XFA Selection]
○ The Ministry of Commerce indicated on June 18 that the foreign trade industry faces difficulties since the beginning of this year and more policies to support foreign trade will be introduced.
○ The National Development and Reform Commission (NDRC) held a video and telephone conference on promoting the ecological civilization construction. It requires accelerating the preparation of implementation plans on a mechanism for ecological compensation.
○The National Bureau of Statistics (NBS) unveiled the home prices in large-and middle-sized cities for May. The prices of new commodity homes in Shenzhen saw a surge of 6.7% on a monthly basis, setting a new high.
○ Alibaba and Foxconn made strategic capital injection into SoftBank’s robot subsidiary to promote the development and application of the emotional robot, Pepper.
○ The website of the China Securities Regulatory Commission (CSRC) released the IPO prospectus of Zhoushan Port Co., Ltd. and other two companies on June 18 evening.
[Industry Information]
○ Science and Technology Industry for National Defense 2025 to release, aeroengine to enjoy priority
------
Xu Dazhe, Director of the State Administration of Science, Technology and Industry for National Defense, indicated recently that it will promote the equipment upgrading in China in combination with the preparation of the ‘Science and Technology Industry for National Defense 2025’ and the 13th Five-year Plan on the civil and military integration in the science and technology industry. As a pillar in the state advanced manufacturing industry, the national defense industry will play a unique role in the Made in China 2025 strategy.
Comment: As the advanced representation of the national defense industry, the aeroengine is one of the ten key projects in the Made in China 2025 strategy and will be the breakthrough in the Science and Technology Industry for National Defense 2025. The preparation of the Science and Technology Industry for National Defense 2025 and the civil and military integration plan will further promote the development of the aeroengine industry. It is expected that the demand for aeroengines and gas turbine will succeed 2 trillion yuan in the following 20 years. The market demand for components for engines and super alloy materials will see rapid expansion. Among listed companies, Sichuan Chengfa Aero Science & Technology Co., Ltd. (600391.SH) is principally engaged in the manufacturing of components to engines. AVIC Aviation Engine Corporation Plc. (600893.SH) is principally engaged in the assembling of engines. Beijing Cisri-gaona Materials & Technology Co., Ltd. (300034.SZ) and Fushun Special Steel Co., Ltd. (600399.SH) produce super alloy materials.
○ Ministry of Transport to promote intelligent transportation projects, hundreds of billions of yuan to invest in ten years
------
The Ministry of Transport issued a circular on June 18, requiring speeding up in promoting the construction of demonstration projects in the application of urban intelligent public transportation. The circular set out the progress of the construction and proposed to complete the construction of the framework of the pilot projects in the first 10 cities by the end of 2015. The circular also required facilitating the deep application of the mobile Internet, the Internet of Things, big data, cloud computing and other new generation of information technology in the operation, service and management of urban public transportation and striving to build a comprehensive, efficient, accurate and reliable urban public transportation information services system to improve the intelligence level of urban public transportation.
Comment: Facing the increasing crowd urban traffic conditions, the intelligent transportation is becoming an effective means. It is estimated that the investment in the domestic intelligent transportation will reach 100 billion yuan in the following 10 years. Among listed companies, China Shipping Network Technology Co., Ltd. (002401.SZ) is a leader in the domestic intelligent transportation industry. With the implementation of the reform of China Shipping (Group) Company, the company is expected to see more opportunities for expansion. Enjoyor Co., Ltd. (300020.SZ) provides the comprehensive management and control platform for urban intelligent transportation and other products. Institutes believe that the company is transforming from a project-based company into a platform-based operation company.
[Announcement Interpretation]
○ Ringpu Bio-technology to acquire two pharmaceutical companies to build industrial cluster of biological products
------
Tianjin Ringpu Bio-technology Co., Ltd. (300119.SZ) plans to acquire 65 percent equities of South China Biological Medicine Company Limited with 211 million yuan and acquire 36 percent equities of Hunan Sinoland Pharmaceutical Company Limited with 73.64 million yuan through private placement (its shareholding in the company increases to 92 percent); meanwhile, it plans to raise a supporting fund of 284 million yuan through private placement from substantial shareholder Li Shoujun, the company’s staff shareholding plan, etc. to pay the cash needed by the transaction, invest in the business projects of above two pharmaceutical companies. The offering prices are both 16.02 yuan per share.
Comment: Ringpu Bio-technology will own the product resources of H5 avian influenza inactivated vaccine through acquisition to make up its product vacancy as the main supplier of domestic poultry vaccine.
○ Highlander Digital Technology to acquire Highlander Laolei Ocean Technology to expand ocean informatization
------
Beijing Highlander Digital Technology Co., Ltd. (300065.SZ) plans to acquire 100 percent equities of Shanghai Highlander Laolei Ocean Technology Company Limited with 550 million yuan by issuing 28.71 million shares at 19.16 yuan per share through private placement. Highlander Laolei Ocean Technology is the company’s oceanographic survey system solution provider and mainly provides integrated and technical service of global high-end oceanographic survey instrument system. Its product, technology and service mainly cover areas like physical oceanography, marine charting, underwater engineering, etc.; it also owns development ability in ocean information data processing software.
The underlying company promises that its net profit from 2015 to 2018 will be no less than 28.40 million yuan, 32.00 million yuan, 33.60 million yuan and 35.30 million yuan, respectively. The net profit of Highlander Digital Technology in 2014 recorded 18.07 million yuan. Upon completion of transaction, the company will form a development structure principally engaged in the intellectualization of navigation and the informatization of marine monitoring.
○ MTC to develop Internet TV, Oriental Pearl, SMG and Qingdao Haier involved in private placement
----
Shenzhen MTC Co., Ltd. (002429.SZ) plans to raise 3,671 million yuan by issuing 297 million shares to Shanghai Oriental Pearl (Group) Co., Ltd. (600832.SH), Shanghai Media & Entertainment Group (SMG) and Qingdao Haier Co., Ltd. (600690.SH) at 12.36 yuan per share through private placement to invest in the joint-operation of Internet TV business. Meanwhile, the company has signed strategic cooperation agreement with Oriental Pearl to together build a business mode of Internet TV ecosphere integrating content, channel, platform, terminal and application services.
Comment: After this private placement, the company will offset its weakness in content resources and Internet TV operation and will transform from an electronic manufacturer to an Internet TV business joint operator integrating advantages in content, software, hardware, etc.
○ Person acting in concert with controlling shareholder of Kondarl to overweight
------
Ji Shengzhi, person acting in concert with Huachao Group, controlling shareholder of Shenzhen Kondarl (Group) Co., Ltd. (000048.SZ), bought 1,718,900 shares of the company at an average price of 20.73 yuan per share between June 16 and 17, indicating an amount of 35.63 million yuan. Ji plans to acquire no more than 1.81 percent of the company’s total share capital in next 12 months.
[Companies Hotspot]
○ Substantial shareholder of Winsan Medical Science and Technology to participate in equity crowd-funding platform to develop Internet finance
------
an equity crowd-funding platform participated by Shanghai Jiuchuan Investment Company (substantial shareholder of Winsan (Shanghai) Medical Science and Technology Co., Ltd. (600767.SH)), was officially established on June 18. Meanwhile, the platform has signed strategic cooperation agreement with Shanghai Equity Trading Center, indicating that Jiuchuan Investment has started the first step towards its transformation of Internet finance. Since participation in the company, Jiuchuan Investment actively pushes forward the company’s debt reorganization and business transformation. The market expects that it can continue to build Internet finance business on the platform of listed company.
[Financial Reports Express]
○ Hongli Opto-Electronic forecasts profit growth and plans high share dividend
------
Guangzhou Hongli Opto-Electronic Co., Ltd. (300219.SZ) forecasts that its net profit in the first half of 2015 sees a year-on-year growth of 60~80 percent and proposes a 15-for-10 conversion of capital surplus into shares.
[Trading Alarms]
○ Nine new stocks including Wondfo Biotech start subscription on June 19
------
Guangzhou Wondfo Biotech Co., Ltd. (300482.SZ) issues shares at 16 yuan per share with an up-limit per account of 8,500 shares; Henan Kedi Dairy Co., Ltd. (002770.SZ) issues shares at 6.85 yuan per share with an up-limit per account of 27,000 shares; Hengtong Logistic Co., Ltd. (732223.SH) issues shares at 8.31 yuan per share with an up-limit per account of 12,000 shares; JCHX Mining Management Co., Ltd. (732979. SH) issues shares at 17.19 yuan per share with an up-limit per account of 38,000 shares; Harbin Zhongfei New Technology Co., Ltd. (300489.SZ) issues shares at 17.56 yuan per share with an up-limit per account of 4,500 shares; Xi'an Sunresin New Materials Co., Ltd (300487.SZ) issues shares at 14.83 yuan per share with an up-limit per account of 8,000 shares; Shanxi Oriental Material Handline Co., Ltd. (300486.SZ) issues shares at 8.94 yuan per share with an up-limit per account of 13,500 shares; Puyang Huicheng Electronic Material Co., Ltd. (300481.SZ) issues shares at 9.13 yuan per share with an up-limit per account of 8,000 shares; Zhejiang Tiancheng Controls Co., Ltd. (732085. SH) issues shares at 7.27 yuan per share with an up-limit per account of 10,000 shares.
Maximum subscription needs 1.54 million yuan. Institutions recommend Wondfo Biotech as first choice. The company is principally engaged in fast diagnosis reagent, etc.
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