[Today's Guide]
>Semiyearly reports to unveiled next week, sub-new stocks and stocks forecasting performance growth concerned
>Beidou navigation expands application scope and sees promising potential development
>Strong intention to stabilize stock prices increases shareholding in companies, including Zhejiang Furun...
>Shuangta Food proposes high share conversion, institutes support private placements of certain companies
[XFA Focus]
○Semiyearly reports to unveiled next week, sub-new stocks and stocks forecasting performance growth concerned
------
Shenzhen Stock Exchange releases timetable to disclose regular reports: Shandong Wohua Pharmaceutical Co., Ltd. (002107.SZ) will take the lead in unveiling its semiyearly report on July 6 and the company forecasts that its net profit in the first half year will see a year-on-year growth of 650~700 percent; Myhome Real Estate Development Group Co., Ltd. (000667.SZ) and Guangdong Baolihua New Energy Stock Co., Ltd. (000690.SZ) will release their semiyearly reports on July 11. As for sub-new stocks, Shandong Laiwu Jinlei Wind Power Technology Co., Ltd. (300443.SZ), Geron Co., Ltd. (002722.SZ), Guangdong Yantang Dairy Co., Ltd. (002732.SZ) and etc. haven’t planned high share conversion since they are listed and their semiyearly reports will be unveiled in the latter part of July.
Comment: Investment centering on semiyearly reports may become the main thread in July. Seen from past experiences, excess earnings can be gained easier from companies releasing high share conversion plans earlier, so it’s better to choose these stocks whose disclosure of semiyearly reports is earlier when investing stocks planning high share conversion. As for performance, wind power industry represented by Xinjiang Goldwind Science And Technology Co., Ltd. (002202.SZ; 02208.HK), PTA industry represented by Rongsheng Petro Chemical Co., Ltd. (002493.SZ) and mobile phone spare parts industry represented by Suzhou Dongshan Precision Manufacturing Co., Ltd. (002384.SZ) share the common characteristic of growth. The prices of viscose fiber, lithium carbonate, pork, etc. keep surging, and it will benefit relevant companies.
◆Pork price nationwide has surged over 8 percent since the middle of April, according to the monitoring of the Xinhua News Agency.
[XFA Selection]
○Chinese Premier Li Keqiang attended a forum on the China-EU urbanization partnership on July 29 and he addressed that China and Europe should deepen cooperation in areas including intelligent city, energy conservation and environment protection, etc.
○Securities Association of China reports the investigation of OTC financing and will accept applications of evaluation and assessment from information systems outside securities companies from August.
○National Development and Reform Commission (NDRC) recently indicated that it plans to launch four new significant engineering packages, namely, urban rail transit, modern logistics, emerging industry and the sharpening of manufacturing industries’ core competitiveness.
○NDRC released implementation opinions on June 30, promoting the construction of national transformation and upgrading demonstration area along the Yangtze River economic zone.
○Spokesman of the Ministry of Foreign Affairs indicated that China has completed reclamation on some islands of the Nansha Islands and will develop facility construction in the next step.
[Industry Information]
○Beidou navigation expands application scope and sees promising potential development
------
The website of Civil Aviation Administration showed on June 30 that the Beidou Civil Aviation Application Seminar was convened in Xi’an recently. The seminar pointed out that the Beidou satellites navigation system has very broad potential application prospect in civil aviation area. The seminar specified that since the operation of general aviation is quite flexible, Beidou satellites navigation system can be first promoted in general aviation area. Data collection and experience accumulation can be done by piloting the system in general aviation area. As the coverage of Beidou satellites navigation system in the whole world deepens, the system can be gradually promoted to transport aviation area.
Comment: This is the latest progress of China’s support to Beidou applications. Beidou navigation system, as a tool for China to master independent, safe and controllable positioning system, will see increasing policy support. According to the twelfth five-year plan of satellite navigation industry, the output value of Beidou industry will reach 400 billion yuan and Beidou products will enjoy a market share of 80 percent in key application areas by 2020. Among listed companies, thanks to the increasing sales of satellite navigation terminal products, Chengdu CORPRO Technology Co., Ltd. (300101.SZ) forecasts a performance growth of 250~280 percent in the first half year; the Beidou terminals to be applied in the tracking, positioning and remote video surveillance of passenger cars and freight cars produced by Wuhan Yangtze Communication Industry Group Co., Ltd. (600345.SH) have been approved by the Ministry of Transport.
○State Post Bureau focuses on “last mile” problem, smart express box becomes effective scheme
------
Liu Jun, deputy head of State Post Bureau, indicated on the express “last mile” summit held in Beijing on June 30 that State Post Bureau will release Management Methods on Smart Express Box Delivery Service to further standardize the setting, using and managing of smart express box and to intensify the protection of express security, information security and users’ rights. The summit issued the first Report on the Development Situation and Tendency of China Smart Express Box. By April this year, 31,156 smart express boxes are installed in 50 cities and more than 113 million expresses are delivered through smart express boxes.
Comment: Along with the rapid development of e-commerce, express business sees high-speed growth, but the “last mile” delivery problem impedes the development of express delivery industry. As an effective solution to above problem, smart express box has attracted some companies to make planning in advance. Chengdu Santai Holding Group Co., Ltd. (002312.SZ) has launched private placement plan to arrange smart delivery equipment in 33,000 spots; Hunan Copote Science Technology Co., Ltd. (600476.SH) also has launched smart express box products.
○State Council to support rundown urban areas renovation, household appliance industry expected to boom
------
The State Council issued the “Opinions on Further Promoting Renovation on Rundown Urban Areas and Dilapidated Housing and Ancillary Infrastructure Construction” on June 30. The “Opinions” proposes to advance the people-oriented new urbanization and implement a three-year plan. It will renovate 18 million houses in various rundown urban areas, including dilapidated house in cities and villages in urban areas from 2015 to 2017 (5.8 million in 2015) and 10.6 million dilapidated house in rural areas (4.32 million in 2015). It will also make more efforts in the construction of ancillary infrastructure in rundown urban areas.
Comment: Institute believe that the renovation in rundown urban areas has been attached great importance in stabilizing economic growth. Besides, with the effect on the cut of interest rate and required reserve ratio gradually showing, relevant industrial chains in the property industry is expected to recover driven by improved demands. Among listed companies, Hangzhou Robam Appliances Co., Ltd. (002508.SZ) expects an increase of 20 percent to 40 percent in the first half. The company believes that its performance will recover in the second half. Wuxi Little Swan Company Limited (000418.SZ) recorded growth in business revenue and profits in the first quarter.
[Announcement Interpretation]
○Strong intention to stabilize stock prices increases shareholding in companies, including Zhejiang Furun
------
The controlling shareholders, actual controllers, management, employee shareholding plans and other connected parties of many listed companies have increased their shareholdings in companies after the plunge of the stock market in recent days, showing their strong intention to maintain the stock prices of such companies.
◆ Furun Group, the controlling shareholder of Zhejiang Furun Co., Ltd. (600070.SH), increased the shareholding in the company by 6,345,000 shares with an average price of 11.74 yuan per share on June 30, accounting for 1.78 percent of the total share capital of the company. Wan Bo brothers, Tong Xuying and Yi Shunxi, persons acting in concert with Shenzhen Woer Heat-Shrinkable Material Co., Ltd. (002130.SZ), a shareholder of Changyuan Group Ltd. (600525.SH), increased the shareholding in the company by 5.77 million shares from June 16 to 30 and the transaction prices were from 17.32 yuan to 28.11 yuan per share.
◆ Four senior management of Shenzhen Fenda Technology Co., Ltd. (002681.SZ) plan to increase the shareholding in the company by no less than 50 million yuan with their own capitals in the following three months from July 1. The management of Zhejiang Conba Pharmaceutical Co., Ltd. (600572.SH) plans to increase the shareholding in the company by 630,000 to 1.15 million shares in the following three months from June 29 after its actual controllers increased their shareholdings yesterday.
◆Guizhou Yibai Pharmaceutical Co., Ltd. (600594.SH) announced that its employees shareholding plan has bought 4.87 million shares of the company at an average price of 52.1 yuan per share by June 30, accounting for 1.23 percent of the total share capital of the company. Eight management of Beijing UniStrong Science & Technology Co., Ltd. (002383.SZ), including directors, senior management and business leaders plan to increase the shareholding in the company by no less than 80 million yuan with their own capitals in the following six months from July 2.
○Hongbo to invest in China Securities Credit to develop financial services
------
Hongbo Co., Ltd. (002229.SZ) intends to increase the capital in China Securities Credit Investment Co., Ltd. by 100 million yuan. China Securities Credit Investment plans to issue 1 billion shares with 1 yuan per share. Hongbo will subscribe 100 million shares, accounting for 2.33 percent of the total share capital of China Securities Credit Investment after the additional issuance. China Securities Credit Investment is a national capital market infrastructure and functional company jointly sponsored by various securities companies, insurance companies, Internet-based companies and government investment platforms. Its function is to provide the market and industry with professional and comprehensive credit management services. Hongbo has invested in equities of two commercial banks, namely Chengdu Rural Commercial Bank and Xiamen Xiang’an Minsheng Rural Banking Corporation Limited.
[Financial Reports Express]
○Shuangta Food and Talent Television & Film propose high share conversion and dividend
------
The substantial shareholder of Yantai Shuangta Food Co., Ltd. (002481.SZ) proposes a 15-for-10 conversion of capital surplus into shares according to its interim report. Zhejiang Talent Television & Film Co., Ltd. (300426.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 1.2 yuan dividend for every 10 shares according to its interim report.
○Hifuture Electric raises interim results
------
Shenzhen Hifuture Electric Co., Ltd. (002168.SZ) raised its results to a profit of approximately 110 million yuan in the first half, representing an increase of 51 times year on year. It formerly estimated that its net profit in the first half would be 74 million yuan to 75 million yuan.
[Data Speaks]
○Institutes support private placements of certain companies, varieties with stock price below issue price favored
------
The statistics of XFA show that with the deep adjustment of the market, the latest market prices of 11 companies have fallen below the issue prices for private placements this year. As the lock-up period for the participation of institutional investors in the targeted additional issuances of listed companies is one year, they usually take full consideration of their medium- to long-term results and future development, so they enjoy relatively higher safety. For companies with the final issue prices far above the bottom prices of private placements, it highlights that institutes are rosy about their prospects. For example, Anhui Water Resources Development Co., Ltd. (600502.SH) announced on June 26 evening that it completed the private placement at a price 193 percent higher than the bottom price. Its performance is better than the market recently.
XFA found that the current prices of Jiangsu Nhwa Pharmaceutical Co., Ltd. (002262.SZ), Shanghai Jielong Industry Group Corporation Limited (600836.SH) and Ping An Bank Co., Ltd. (000001.SZ) represent high discounts with the issue prices of private placements, representing a discount of 21.28 percent, 15 percent and 12.9 percent, respectively. Their final issue prices are far above the bottom prices.
>Semiyearly reports to unveiled next week, sub-new stocks and stocks forecasting performance growth concerned
>Beidou navigation expands application scope and sees promising potential development
>Strong intention to stabilize stock prices increases shareholding in companies, including Zhejiang Furun...
>Shuangta Food proposes high share conversion, institutes support private placements of certain companies
[XFA Focus]
○Semiyearly reports to unveiled next week, sub-new stocks and stocks forecasting performance growth concerned
------
Shenzhen Stock Exchange releases timetable to disclose regular reports: Shandong Wohua Pharmaceutical Co., Ltd. (002107.SZ) will take the lead in unveiling its semiyearly report on July 6 and the company forecasts that its net profit in the first half year will see a year-on-year growth of 650~700 percent; Myhome Real Estate Development Group Co., Ltd. (000667.SZ) and Guangdong Baolihua New Energy Stock Co., Ltd. (000690.SZ) will release their semiyearly reports on July 11. As for sub-new stocks, Shandong Laiwu Jinlei Wind Power Technology Co., Ltd. (300443.SZ), Geron Co., Ltd. (002722.SZ), Guangdong Yantang Dairy Co., Ltd. (002732.SZ) and etc. haven’t planned high share conversion since they are listed and their semiyearly reports will be unveiled in the latter part of July.
Comment: Investment centering on semiyearly reports may become the main thread in July. Seen from past experiences, excess earnings can be gained easier from companies releasing high share conversion plans earlier, so it’s better to choose these stocks whose disclosure of semiyearly reports is earlier when investing stocks planning high share conversion. As for performance, wind power industry represented by Xinjiang Goldwind Science And Technology Co., Ltd. (002202.SZ; 02208.HK), PTA industry represented by Rongsheng Petro Chemical Co., Ltd. (002493.SZ) and mobile phone spare parts industry represented by Suzhou Dongshan Precision Manufacturing Co., Ltd. (002384.SZ) share the common characteristic of growth. The prices of viscose fiber, lithium carbonate, pork, etc. keep surging, and it will benefit relevant companies.
◆Pork price nationwide has surged over 8 percent since the middle of April, according to the monitoring of the Xinhua News Agency.
[XFA Selection]
○Chinese Premier Li Keqiang attended a forum on the China-EU urbanization partnership on July 29 and he addressed that China and Europe should deepen cooperation in areas including intelligent city, energy conservation and environment protection, etc.
○Securities Association of China reports the investigation of OTC financing and will accept applications of evaluation and assessment from information systems outside securities companies from August.
○National Development and Reform Commission (NDRC) recently indicated that it plans to launch four new significant engineering packages, namely, urban rail transit, modern logistics, emerging industry and the sharpening of manufacturing industries’ core competitiveness.
○NDRC released implementation opinions on June 30, promoting the construction of national transformation and upgrading demonstration area along the Yangtze River economic zone.
○Spokesman of the Ministry of Foreign Affairs indicated that China has completed reclamation on some islands of the Nansha Islands and will develop facility construction in the next step.
[Industry Information]
○Beidou navigation expands application scope and sees promising potential development
------
The website of Civil Aviation Administration showed on June 30 that the Beidou Civil Aviation Application Seminar was convened in Xi’an recently. The seminar pointed out that the Beidou satellites navigation system has very broad potential application prospect in civil aviation area. The seminar specified that since the operation of general aviation is quite flexible, Beidou satellites navigation system can be first promoted in general aviation area. Data collection and experience accumulation can be done by piloting the system in general aviation area. As the coverage of Beidou satellites navigation system in the whole world deepens, the system can be gradually promoted to transport aviation area.
Comment: This is the latest progress of China’s support to Beidou applications. Beidou navigation system, as a tool for China to master independent, safe and controllable positioning system, will see increasing policy support. According to the twelfth five-year plan of satellite navigation industry, the output value of Beidou industry will reach 400 billion yuan and Beidou products will enjoy a market share of 80 percent in key application areas by 2020. Among listed companies, thanks to the increasing sales of satellite navigation terminal products, Chengdu CORPRO Technology Co., Ltd. (300101.SZ) forecasts a performance growth of 250~280 percent in the first half year; the Beidou terminals to be applied in the tracking, positioning and remote video surveillance of passenger cars and freight cars produced by Wuhan Yangtze Communication Industry Group Co., Ltd. (600345.SH) have been approved by the Ministry of Transport.
○State Post Bureau focuses on “last mile” problem, smart express box becomes effective scheme
------
Liu Jun, deputy head of State Post Bureau, indicated on the express “last mile” summit held in Beijing on June 30 that State Post Bureau will release Management Methods on Smart Express Box Delivery Service to further standardize the setting, using and managing of smart express box and to intensify the protection of express security, information security and users’ rights. The summit issued the first Report on the Development Situation and Tendency of China Smart Express Box. By April this year, 31,156 smart express boxes are installed in 50 cities and more than 113 million expresses are delivered through smart express boxes.
Comment: Along with the rapid development of e-commerce, express business sees high-speed growth, but the “last mile” delivery problem impedes the development of express delivery industry. As an effective solution to above problem, smart express box has attracted some companies to make planning in advance. Chengdu Santai Holding Group Co., Ltd. (002312.SZ) has launched private placement plan to arrange smart delivery equipment in 33,000 spots; Hunan Copote Science Technology Co., Ltd. (600476.SH) also has launched smart express box products.
○State Council to support rundown urban areas renovation, household appliance industry expected to boom
------
The State Council issued the “Opinions on Further Promoting Renovation on Rundown Urban Areas and Dilapidated Housing and Ancillary Infrastructure Construction” on June 30. The “Opinions” proposes to advance the people-oriented new urbanization and implement a three-year plan. It will renovate 18 million houses in various rundown urban areas, including dilapidated house in cities and villages in urban areas from 2015 to 2017 (5.8 million in 2015) and 10.6 million dilapidated house in rural areas (4.32 million in 2015). It will also make more efforts in the construction of ancillary infrastructure in rundown urban areas.
Comment: Institute believe that the renovation in rundown urban areas has been attached great importance in stabilizing economic growth. Besides, with the effect on the cut of interest rate and required reserve ratio gradually showing, relevant industrial chains in the property industry is expected to recover driven by improved demands. Among listed companies, Hangzhou Robam Appliances Co., Ltd. (002508.SZ) expects an increase of 20 percent to 40 percent in the first half. The company believes that its performance will recover in the second half. Wuxi Little Swan Company Limited (000418.SZ) recorded growth in business revenue and profits in the first quarter.
[Announcement Interpretation]
○Strong intention to stabilize stock prices increases shareholding in companies, including Zhejiang Furun
------
The controlling shareholders, actual controllers, management, employee shareholding plans and other connected parties of many listed companies have increased their shareholdings in companies after the plunge of the stock market in recent days, showing their strong intention to maintain the stock prices of such companies.
◆ Furun Group, the controlling shareholder of Zhejiang Furun Co., Ltd. (600070.SH), increased the shareholding in the company by 6,345,000 shares with an average price of 11.74 yuan per share on June 30, accounting for 1.78 percent of the total share capital of the company. Wan Bo brothers, Tong Xuying and Yi Shunxi, persons acting in concert with Shenzhen Woer Heat-Shrinkable Material Co., Ltd. (002130.SZ), a shareholder of Changyuan Group Ltd. (600525.SH), increased the shareholding in the company by 5.77 million shares from June 16 to 30 and the transaction prices were from 17.32 yuan to 28.11 yuan per share.
◆ Four senior management of Shenzhen Fenda Technology Co., Ltd. (002681.SZ) plan to increase the shareholding in the company by no less than 50 million yuan with their own capitals in the following three months from July 1. The management of Zhejiang Conba Pharmaceutical Co., Ltd. (600572.SH) plans to increase the shareholding in the company by 630,000 to 1.15 million shares in the following three months from June 29 after its actual controllers increased their shareholdings yesterday.
◆Guizhou Yibai Pharmaceutical Co., Ltd. (600594.SH) announced that its employees shareholding plan has bought 4.87 million shares of the company at an average price of 52.1 yuan per share by June 30, accounting for 1.23 percent of the total share capital of the company. Eight management of Beijing UniStrong Science & Technology Co., Ltd. (002383.SZ), including directors, senior management and business leaders plan to increase the shareholding in the company by no less than 80 million yuan with their own capitals in the following six months from July 2.
○Hongbo to invest in China Securities Credit to develop financial services
------
Hongbo Co., Ltd. (002229.SZ) intends to increase the capital in China Securities Credit Investment Co., Ltd. by 100 million yuan. China Securities Credit Investment plans to issue 1 billion shares with 1 yuan per share. Hongbo will subscribe 100 million shares, accounting for 2.33 percent of the total share capital of China Securities Credit Investment after the additional issuance. China Securities Credit Investment is a national capital market infrastructure and functional company jointly sponsored by various securities companies, insurance companies, Internet-based companies and government investment platforms. Its function is to provide the market and industry with professional and comprehensive credit management services. Hongbo has invested in equities of two commercial banks, namely Chengdu Rural Commercial Bank and Xiamen Xiang’an Minsheng Rural Banking Corporation Limited.
[Financial Reports Express]
○Shuangta Food and Talent Television & Film propose high share conversion and dividend
------
The substantial shareholder of Yantai Shuangta Food Co., Ltd. (002481.SZ) proposes a 15-for-10 conversion of capital surplus into shares according to its interim report. Zhejiang Talent Television & Film Co., Ltd. (300426.SZ) proposes a 10-for-10 conversion of capital surplus into shares combined with 1.2 yuan dividend for every 10 shares according to its interim report.
○Hifuture Electric raises interim results
------
Shenzhen Hifuture Electric Co., Ltd. (002168.SZ) raised its results to a profit of approximately 110 million yuan in the first half, representing an increase of 51 times year on year. It formerly estimated that its net profit in the first half would be 74 million yuan to 75 million yuan.
[Data Speaks]
○Institutes support private placements of certain companies, varieties with stock price below issue price favored
------
The statistics of XFA show that with the deep adjustment of the market, the latest market prices of 11 companies have fallen below the issue prices for private placements this year. As the lock-up period for the participation of institutional investors in the targeted additional issuances of listed companies is one year, they usually take full consideration of their medium- to long-term results and future development, so they enjoy relatively higher safety. For companies with the final issue prices far above the bottom prices of private placements, it highlights that institutes are rosy about their prospects. For example, Anhui Water Resources Development Co., Ltd. (600502.SH) announced on June 26 evening that it completed the private placement at a price 193 percent higher than the bottom price. Its performance is better than the market recently.
XFA found that the current prices of Jiangsu Nhwa Pharmaceutical Co., Ltd. (002262.SZ), Shanghai Jielong Industry Group Corporation Limited (600836.SH) and Ping An Bank Co., Ltd. (000001.SZ) represent high discounts with the issue prices of private placements, representing a discount of 21.28 percent, 15 percent and 12.9 percent, respectively. Their final issue prices are far above the bottom prices.
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