[Today’s Guide]
> First session of military-civilian integration theme exhibition to convened soon, military sector to see multi good news
> China to establish new energy auto sub-fund, industrial chain to see opportunity of expansion
> Some companies to resume trading with employee shareholding plans, Pure Pearl to acquire three private hospitals
> Yunyi Electric to conduct private placement to develop automotive electronics, East Money Information and Hithink Royal Flush Information Network expect performance to surge
[XFA Focus]
○ First session of military-civilian integration theme exhibition to convened soon, military sector to see multi good news
------
The State Administration of Science, Technology and Industry for National Defense announced on its website that the press conference for the exhibition of the military-civilian integration development fruits in the science and technology industry of national defense will be held in the afternoon of July 15. The exhibition, the first military-civilian integration exhibition of its kind in the science and technology industry of national defense and also the first show of all military group companies in the overall image of groups, will last for 10 days. Significant achievements and products including Hualong No.1 nuclear power model, Chang’e series of satellites, Chengzheng No.5 carrier rocket, Beidou intelligent car networking, etc. will all be displayed.
Comment: With the 70th anniversary of the end of World War II seeing countdown and the shareholding increase by substantial shareholders and senior management of listed companies under COFCO Corporation, the military sector sees continuous good news. Chinese President Xi Jinping proposed to lift military-civilian integration development as national strategy this year. Supporting policies are launched intensively and civil enterprises, as an important emerging power of military industry, will surely see significant development. As for listed companies, Hwa Create Co., Ltd. (300045.SZ) expects its performance to see a year-on-year growth of 30~60 percent in the first half year. The performance growth mainly comes from Beidou navigation products. The company’s subsidiary is engaged in car networking business; military cables produced by Nanjing Quanxin Cable Technology Co., Ltd. (300447.SZ) might expand market in civil aviation, vessel, high-speed rail, etc. in the trend of military-civilian integration; military power technology of Jiangsu Yinhe Electronics Co., Ltd. (002519.SZ) is applied in the charging of new energy cars.
[XFA Selection]
○ The newly-added credit in June reaches the highest of the same term in nearly six years. The monetary policy might increase efforts in targeted adjustment in the future.
○ The sales volume of top 50 real estate enterprises sees a quarter-on-quarter growth of 81 percent in the second quarter of this year. Performance improvement might be shown gradually in the second half year.
○ Monitoring data from Xinhua News Agency shows that the pork price nationwide sees obvious surge. The total surge exceeds 15 percent since middle-April.
○ Beijing Municipal Commission of Urban Planning disclosed much detail about the construction of Tongzhou district on July 14. It indicated that industrial upgrading will be achieved and more medical and education resources will be introduced.
○ Iran reached agreement with six world powers on nuclear deal. The price of crude oil futures in New York saw a drop of 0.8 percent by 21:00, July 14 (Beijing time).
[Industry Information]
○ China to establish new energy auto sub-fund, industrial chain to see opportunity of expansion
------
Jiangsu Dongyuan Electrical Group Co., Ltd. (002074.SZ) announced earlier that the Ministry of Science and Technology and the Ministry of Finance will take the lead in establishing new energy auto sub-fund. According to introduction, the first term of the fund will be around 500~700 million yuan which will be undertaken by both the state and enterprises. The fund will be mainly invested in the project library of national technical achievement commercialization and quality projects related to upstream and downstream industrial chain of new energy vehicles. As reported by media, the development plan for charging facilities of electro-mobile has been signed by ministries and departments and will be launched soon.
Comment: The establishment of new energy auto sub-fund helps to improve the development and manufacturing level of industrial chain and support the popularization of electro-mobiles. Latest data shows that the output of new energy vehicles in the first half year grows by 300 percent. Lithium carbonate and motor drive system, located in the middle and upstream of the industrial chain, see booming demand. Among listed companies, Sichuan Tianqi Lithium Industries, Inc. (002466.SZ) is a leading enterprise in lithium mineral; Yantai Zhenghai Magnetic Material Co., Ltd. (300224.SZ), principally engaged in NdFeB and motor drive system, expects a performance growth of 85~115 percent in the first half year.
○ “Made in China” greatly supported by top management, industrial policy support expectable
------
According to report by Xinhua News Agency, the completion ceremony of “Made in China 2025” special seminar was held on July 14 in Chinese Academy of Governance. Ma Kai, head of national manufacturing power construction leadership group, attended the ceremony and made speech, proposing giving big push to the innovative development of manufacturing industry, actively promoting in-depth integration of information technology and manufacturing technology, improving basic industrial ability and enhancing digital, networked and intellectualized manufacturing level. In addition, Miao Wei, Minister of Industry and Information Technology, recently wrote article proposing to organize and implement five projects, namely, the construction of national manufacturing innovation center, intelligent manufacturing, strong industrial foundation, green manufacturing and high-end equipment innovation.
Comment: The top management has spared great support to “Made in China” since this year. The national manufacturing power construction leadership group convened its first plenary meeting on July 2. Along with the development of the work group, “Made in China 2025” sees actual implementation. Relevant enterprises might see policy support. Among listed companies, Jiangsu Yawei Machine Tool Co., Ltd. (002559.SZ) has completed the production of its first batch of orders on robot. Delivery is expected to be launched recently; Shenzhen Everwin Precision Technology Co., Ltd. (300115.SZ) is actively transforming towards industrial intelligent automation and expects a growth of 65~85 percent in the first half year.
[Announcement Interpretation]
○ Some companies to resume trading with employee shareholding plans
------
As of press time, another 80 companies will resume trading on July 15, many of which introduced employee shareholding plans. Beijing Ultrapower Software Co., Ltd. (300002.SZ) proposes to introduce an employee shareholding plan with an upper ceiling of 1 billion yuan and a leverage ratio of 1:2. Chongqing Lummy Pharmaceutical Co., Ltd. (300006.SZ) plans introduce an employee shareholding plan with an upper ceiling of 200 million yuan, of which employees will raise a maximum of 50 million yuan and the remaining will be leverage funds. In addition, Qingdao Kingking Applied Chemistry Co., Ltd. (002094.SZ), Suzhou Lopsking Aluminum Co., Ltd. (002333.SZ), Jiangsu Skyray Instrument Co., Ltd. (300165.SZ) and Tianze Information Industry Inc. (300209.SZ) also intend to introduce employee shareholding plans with about 100 million yuan to 50 million yuan.
Other companies to resume trading also bring bullish news. A subsidiary of Sanquan Food Co., Ltd. (002216.SZ) and ele.me entered into an agreement to conduct cooperation in the O2O industry. Suzhou Hesheng Special Material Co., Ltd. (002290.SZ) and Changzhou Yanhu Capital Management Co., Ltd. signed a contract to establish the “Zhonghe Supply Chain Industrial Fund” with a tentative size of 2 billion yuan to invest in the supply chain investment, equities investment related to supply chains and industrial mergers of listed companies. The directors, supervisors and senior management of Shenzhen Aoto Electronics Co., Ltd. (002587.SZ) plan to increase the shareholding in the company with no more than 50 million yuan in the following six months.
○ Pure Pearl to acquire three private hospitals with RMB1.5 bln
------
Pure Pearl Group Co., Ltd. (002173.SZ) proposes to issue 127 million shares at 11.78 yuan per share to acquire Jianhua Hospital, Kanghua Hospital and Futian Hospital at 930 million yuan, 480 million yuan and 90 million yuan, respectively. It also plans to raise a supporting fund of 1.5 billion yuan at the same price through private placement, which will be used in the construction of the internal medicine department and comprehensive building of Jianhua Hospital. Pure Pearl will expand its main business into medical services industry and become a listed company with dual main businesses after the transaction. According to the performance commitment, the total net profit of the three hospitals from 2015 to 2017 will be no less than 122 million yuan, 163 million yuan and 191 million yuan, respectively.
○ Yunyi Electric to raise RMB550 million yuan through private placement to develop automotive electronics
------
Jiangsu Yunyi Electric Co., Ltd. (300304.SZ) plans to raise 550 million yuan by issuing 33 million shares through private placement. The proceeds will be invested in the expansion of the high-power automotive diodes project, the new energy automotive engines and controlling system industrialization project and the enterprise testing and experiment center project. It is expected to record an additional net profit of 147 million yuan after reaching the designed capacity. The company recorded a total profit of 93.34 million yuan and a net profit of 81.17 million yuan last year.
○ Hangzhou Cable witnesses shareholding increase
------
Hangzhou Cable Co., Ltd. (603618.SH) intends to introduce an employee shareholding plan with no more than 25 million yuan, which is expected to involve 3.69 million shares, accounting for 1.73 percent of the share capital. Zhuzhou State-owned Assets Investment Holding Group Company Limited, the controlling shareholder of Zhuzhou Tianqiao Crane Co., Ltd. (002523.SZ), increased the shareholding in the company by 6.26 million shares at average price of 9.37 yuan per share, accounting for 1.45 percent of the total share capital. AVIC Investment Holding Co., Ltd., a connected company of AVIC Electromechanical Systems Co., Ltd. (002013.SZ), increased the shareholding in the company by 2.85 million shares from July 10 to 13, accounting for 0.3 percent of the total share capital.
Hebei Jinghai Guarantee Investment Co., Ltd., the second biggest shareholder of Gree Electric Appliances, Inc. of Zhuhai (000651.SZ), plans to increase the shareholding in the company by no less than 460 million yuan in the following three months. JAC Motors, the controlling shareholder of Anhui Ankai Automobile Co., Ltd. (000868.SZ), increased the shareholding in the company by 1.35 million shares on July 14, accounting for 0.19 percent of the share capital at an average price of 7.57 yuan. It will continue to increase the shareholding by no more than 50 million yuan. Besides, the substantial shareholder of China Gezhouba Group Company Limited (600068.SH), certain senior management of Jiangsu Youli Investment Holding Co., Ltd. (000584.SZ) and some directors, supervisors and senior management of Yanzhou Coal Mining Company Limited (01171.HK; 600188.SH) also increased the shareholding in such companies.
[Financial Reports Express]
○ East Money Information and Hithink Royal Flush Information Network expect performance to surge
------
East Money Information Co., Ltd. (300059.SZ) expects its net profit to surge 3,055 percent to 3,085 percent according to according to its interim report. Hithink Royal Flush Information Network Co., Ltd. (300033.SZ) expects its net profit to hike 1,500 percent to 1,900 percent according to according to its interim report. China High-speed Railway Technology Co., Ltd. (000008.SZ) expects its net profit to jump 595 percent to 827 percent according to according to its interim report. Suning Universal Co., Ltd. (000718.SZ) expects its net profit to increase 487 percent to 612 percent according to according to its interim report.
○ Chunxing Precision Mechanical and MIG Technology propose high share conversion
------
Suzhou Chunxing Precision Mechanical Co., Ltd. (002547.SZ) proposes a 20-for-10 conversion of capital surplus into shares according to the profit distribution in the half-year report. MIG Technology Inc. (300242.SZ) proposes a 15-for-10 conversion of capital surplus into shares according to the profit distribution in the half-year report.
[Data Speaks]
○ Four institutes buy DongHua Testing Technology and rosy bout military industry
------
The trading volume ranking list on July 14 shows that four institutional seats bought DongHua Testing Technology Co., Ltd. (300354.SZ) and no institutional seat sold it. The institutional seats recorded a total net amount of 68,144,900 yuan, accounting for 50 percent of its intraday turnover.
Comment: The research reports of institutes show that the company recently recruited senior military talents, which will facilitate in developing new market in the military industry. The company also indicated on an interactive platform with investors that the orders indirectly with the military account for about 50 percent. As the military industry, colleges and other downstream clients usually make plans and approve budgets in the first half and implement in the second half, institutes expect that the company will see high growth in the future.
> First session of military-civilian integration theme exhibition to convened soon, military sector to see multi good news
> China to establish new energy auto sub-fund, industrial chain to see opportunity of expansion
> Some companies to resume trading with employee shareholding plans, Pure Pearl to acquire three private hospitals
> Yunyi Electric to conduct private placement to develop automotive electronics, East Money Information and Hithink Royal Flush Information Network expect performance to surge
[XFA Focus]
○ First session of military-civilian integration theme exhibition to convened soon, military sector to see multi good news
------
The State Administration of Science, Technology and Industry for National Defense announced on its website that the press conference for the exhibition of the military-civilian integration development fruits in the science and technology industry of national defense will be held in the afternoon of July 15. The exhibition, the first military-civilian integration exhibition of its kind in the science and technology industry of national defense and also the first show of all military group companies in the overall image of groups, will last for 10 days. Significant achievements and products including Hualong No.1 nuclear power model, Chang’e series of satellites, Chengzheng No.5 carrier rocket, Beidou intelligent car networking, etc. will all be displayed.
Comment: With the 70th anniversary of the end of World War II seeing countdown and the shareholding increase by substantial shareholders and senior management of listed companies under COFCO Corporation, the military sector sees continuous good news. Chinese President Xi Jinping proposed to lift military-civilian integration development as national strategy this year. Supporting policies are launched intensively and civil enterprises, as an important emerging power of military industry, will surely see significant development. As for listed companies, Hwa Create Co., Ltd. (300045.SZ) expects its performance to see a year-on-year growth of 30~60 percent in the first half year. The performance growth mainly comes from Beidou navigation products. The company’s subsidiary is engaged in car networking business; military cables produced by Nanjing Quanxin Cable Technology Co., Ltd. (300447.SZ) might expand market in civil aviation, vessel, high-speed rail, etc. in the trend of military-civilian integration; military power technology of Jiangsu Yinhe Electronics Co., Ltd. (002519.SZ) is applied in the charging of new energy cars.
[XFA Selection]
○ The newly-added credit in June reaches the highest of the same term in nearly six years. The monetary policy might increase efforts in targeted adjustment in the future.
○ The sales volume of top 50 real estate enterprises sees a quarter-on-quarter growth of 81 percent in the second quarter of this year. Performance improvement might be shown gradually in the second half year.
○ Monitoring data from Xinhua News Agency shows that the pork price nationwide sees obvious surge. The total surge exceeds 15 percent since middle-April.
○ Beijing Municipal Commission of Urban Planning disclosed much detail about the construction of Tongzhou district on July 14. It indicated that industrial upgrading will be achieved and more medical and education resources will be introduced.
○ Iran reached agreement with six world powers on nuclear deal. The price of crude oil futures in New York saw a drop of 0.8 percent by 21:00, July 14 (Beijing time).
[Industry Information]
○ China to establish new energy auto sub-fund, industrial chain to see opportunity of expansion
------
Jiangsu Dongyuan Electrical Group Co., Ltd. (002074.SZ) announced earlier that the Ministry of Science and Technology and the Ministry of Finance will take the lead in establishing new energy auto sub-fund. According to introduction, the first term of the fund will be around 500~700 million yuan which will be undertaken by both the state and enterprises. The fund will be mainly invested in the project library of national technical achievement commercialization and quality projects related to upstream and downstream industrial chain of new energy vehicles. As reported by media, the development plan for charging facilities of electro-mobile has been signed by ministries and departments and will be launched soon.
Comment: The establishment of new energy auto sub-fund helps to improve the development and manufacturing level of industrial chain and support the popularization of electro-mobiles. Latest data shows that the output of new energy vehicles in the first half year grows by 300 percent. Lithium carbonate and motor drive system, located in the middle and upstream of the industrial chain, see booming demand. Among listed companies, Sichuan Tianqi Lithium Industries, Inc. (002466.SZ) is a leading enterprise in lithium mineral; Yantai Zhenghai Magnetic Material Co., Ltd. (300224.SZ), principally engaged in NdFeB and motor drive system, expects a performance growth of 85~115 percent in the first half year.
○ “Made in China” greatly supported by top management, industrial policy support expectable
------
According to report by Xinhua News Agency, the completion ceremony of “Made in China 2025” special seminar was held on July 14 in Chinese Academy of Governance. Ma Kai, head of national manufacturing power construction leadership group, attended the ceremony and made speech, proposing giving big push to the innovative development of manufacturing industry, actively promoting in-depth integration of information technology and manufacturing technology, improving basic industrial ability and enhancing digital, networked and intellectualized manufacturing level. In addition, Miao Wei, Minister of Industry and Information Technology, recently wrote article proposing to organize and implement five projects, namely, the construction of national manufacturing innovation center, intelligent manufacturing, strong industrial foundation, green manufacturing and high-end equipment innovation.
Comment: The top management has spared great support to “Made in China” since this year. The national manufacturing power construction leadership group convened its first plenary meeting on July 2. Along with the development of the work group, “Made in China 2025” sees actual implementation. Relevant enterprises might see policy support. Among listed companies, Jiangsu Yawei Machine Tool Co., Ltd. (002559.SZ) has completed the production of its first batch of orders on robot. Delivery is expected to be launched recently; Shenzhen Everwin Precision Technology Co., Ltd. (300115.SZ) is actively transforming towards industrial intelligent automation and expects a growth of 65~85 percent in the first half year.
[Announcement Interpretation]
○ Some companies to resume trading with employee shareholding plans
------
As of press time, another 80 companies will resume trading on July 15, many of which introduced employee shareholding plans. Beijing Ultrapower Software Co., Ltd. (300002.SZ) proposes to introduce an employee shareholding plan with an upper ceiling of 1 billion yuan and a leverage ratio of 1:2. Chongqing Lummy Pharmaceutical Co., Ltd. (300006.SZ) plans introduce an employee shareholding plan with an upper ceiling of 200 million yuan, of which employees will raise a maximum of 50 million yuan and the remaining will be leverage funds. In addition, Qingdao Kingking Applied Chemistry Co., Ltd. (002094.SZ), Suzhou Lopsking Aluminum Co., Ltd. (002333.SZ), Jiangsu Skyray Instrument Co., Ltd. (300165.SZ) and Tianze Information Industry Inc. (300209.SZ) also intend to introduce employee shareholding plans with about 100 million yuan to 50 million yuan.
Other companies to resume trading also bring bullish news. A subsidiary of Sanquan Food Co., Ltd. (002216.SZ) and ele.me entered into an agreement to conduct cooperation in the O2O industry. Suzhou Hesheng Special Material Co., Ltd. (002290.SZ) and Changzhou Yanhu Capital Management Co., Ltd. signed a contract to establish the “Zhonghe Supply Chain Industrial Fund” with a tentative size of 2 billion yuan to invest in the supply chain investment, equities investment related to supply chains and industrial mergers of listed companies. The directors, supervisors and senior management of Shenzhen Aoto Electronics Co., Ltd. (002587.SZ) plan to increase the shareholding in the company with no more than 50 million yuan in the following six months.
○ Pure Pearl to acquire three private hospitals with RMB1.5 bln
------
Pure Pearl Group Co., Ltd. (002173.SZ) proposes to issue 127 million shares at 11.78 yuan per share to acquire Jianhua Hospital, Kanghua Hospital and Futian Hospital at 930 million yuan, 480 million yuan and 90 million yuan, respectively. It also plans to raise a supporting fund of 1.5 billion yuan at the same price through private placement, which will be used in the construction of the internal medicine department and comprehensive building of Jianhua Hospital. Pure Pearl will expand its main business into medical services industry and become a listed company with dual main businesses after the transaction. According to the performance commitment, the total net profit of the three hospitals from 2015 to 2017 will be no less than 122 million yuan, 163 million yuan and 191 million yuan, respectively.
○ Yunyi Electric to raise RMB550 million yuan through private placement to develop automotive electronics
------
Jiangsu Yunyi Electric Co., Ltd. (300304.SZ) plans to raise 550 million yuan by issuing 33 million shares through private placement. The proceeds will be invested in the expansion of the high-power automotive diodes project, the new energy automotive engines and controlling system industrialization project and the enterprise testing and experiment center project. It is expected to record an additional net profit of 147 million yuan after reaching the designed capacity. The company recorded a total profit of 93.34 million yuan and a net profit of 81.17 million yuan last year.
○ Hangzhou Cable witnesses shareholding increase
------
Hangzhou Cable Co., Ltd. (603618.SH) intends to introduce an employee shareholding plan with no more than 25 million yuan, which is expected to involve 3.69 million shares, accounting for 1.73 percent of the share capital. Zhuzhou State-owned Assets Investment Holding Group Company Limited, the controlling shareholder of Zhuzhou Tianqiao Crane Co., Ltd. (002523.SZ), increased the shareholding in the company by 6.26 million shares at average price of 9.37 yuan per share, accounting for 1.45 percent of the total share capital. AVIC Investment Holding Co., Ltd., a connected company of AVIC Electromechanical Systems Co., Ltd. (002013.SZ), increased the shareholding in the company by 2.85 million shares from July 10 to 13, accounting for 0.3 percent of the total share capital.
Hebei Jinghai Guarantee Investment Co., Ltd., the second biggest shareholder of Gree Electric Appliances, Inc. of Zhuhai (000651.SZ), plans to increase the shareholding in the company by no less than 460 million yuan in the following three months. JAC Motors, the controlling shareholder of Anhui Ankai Automobile Co., Ltd. (000868.SZ), increased the shareholding in the company by 1.35 million shares on July 14, accounting for 0.19 percent of the share capital at an average price of 7.57 yuan. It will continue to increase the shareholding by no more than 50 million yuan. Besides, the substantial shareholder of China Gezhouba Group Company Limited (600068.SH), certain senior management of Jiangsu Youli Investment Holding Co., Ltd. (000584.SZ) and some directors, supervisors and senior management of Yanzhou Coal Mining Company Limited (01171.HK; 600188.SH) also increased the shareholding in such companies.
[Financial Reports Express]
○ East Money Information and Hithink Royal Flush Information Network expect performance to surge
------
East Money Information Co., Ltd. (300059.SZ) expects its net profit to surge 3,055 percent to 3,085 percent according to according to its interim report. Hithink Royal Flush Information Network Co., Ltd. (300033.SZ) expects its net profit to hike 1,500 percent to 1,900 percent according to according to its interim report. China High-speed Railway Technology Co., Ltd. (000008.SZ) expects its net profit to jump 595 percent to 827 percent according to according to its interim report. Suning Universal Co., Ltd. (000718.SZ) expects its net profit to increase 487 percent to 612 percent according to according to its interim report.
○ Chunxing Precision Mechanical and MIG Technology propose high share conversion
------
Suzhou Chunxing Precision Mechanical Co., Ltd. (002547.SZ) proposes a 20-for-10 conversion of capital surplus into shares according to the profit distribution in the half-year report. MIG Technology Inc. (300242.SZ) proposes a 15-for-10 conversion of capital surplus into shares according to the profit distribution in the half-year report.
[Data Speaks]
○ Four institutes buy DongHua Testing Technology and rosy bout military industry
------
The trading volume ranking list on July 14 shows that four institutional seats bought DongHua Testing Technology Co., Ltd. (300354.SZ) and no institutional seat sold it. The institutional seats recorded a total net amount of 68,144,900 yuan, accounting for 50 percent of its intraday turnover.
Comment: The research reports of institutes show that the company recently recruited senior military talents, which will facilitate in developing new market in the military industry. The company also indicated on an interactive platform with investors that the orders indirectly with the military account for about 50 percent. As the military industry, colleges and other downstream clients usually make plans and approve budgets in the first half and implement in the second half, institutes expect that the company will see high growth in the future.
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