[Today’s Guide]
>Cement sector favored by big funds, policies promoting investment might improve industrial development
>Railway container transportation sees accelerated growth, transformation of modern logistics achieves initial success
>CSF becomes shareholder of many companies, Fin CNC Machine resumes trading with bullish news
>Oriental Times proposes high share conversion, companies see significant decrease in shareholders in Q2
[XFA Focus]
○Cement sector favored by big funds, policies promoting investment might improve industrial development
------
The trading volume ranking list shows that Huaxin Cement Co., Ltd. (600801.SH), which soared by the daily 10 percent limit on August 3, was bought by the business department of Citic Securities Company Limited (600030.SH; 06030.HK) on Beijing Financial Street with 60.89 million yuan and by four institutional seats with 128 million yuan, accounting for 45 percent of its intraday turnover; Xinjiang Qingsong Building Materials and Chemicals (Group) Co., Ltd. (600425.SH) was also bought by this business department under Citic Securities and an institutional seats with 69.12 million yuan. Though June and July are the slack season of cement industry, data shows that price drop is weakened compared with previous period and the prices of steel and cement even pick up in July in some areas.
Comment: Along with the accelerated progress of integrated traffic of Beijing-Tianjin-Hebei area and the interconnection of “One Belt and One Road”, new growth space will be expanded for the demand on cement. XFA also learns that the relatively big downward pressure on the economy, difficulties faced by some enterprises in operation, etc. have attracted great attentions of senior management, “promoting investment” remains a good choice in driving economic development at current stage. Policy banks might spare greater support to infrastructure projects including the renovation of shanty towns, railway, road and water conservancy construction, etc.
◆The government portal of Ningxia Hui Autonomous Region released the Opinions on Blending into “One Belt and One Road” and Accelerating Opening Construction of Ningxia on August 3. Local building material enterprises include Ningxia Building Materials Group Co., Ltd. (600449.SH), Ningxia Xinri Hengli Steel Wire Rope Co., Ltd. (600165.SH) and Ningxia Qinglong Pipes Industry Co., Ltd. (002457.SZ), etc.
[XFA Selection]
○Shanghai Stock Exchange suspended four accounts with serious abnormal trading during trading hours and sent oral warning to five accounts with abnormal trading on August 3.
○National Bureau of Statistics made public that the whole e-commerce trading volume in China exceeded 16 trillion yuan last year, indicating a year-on-year growth of 59 percent.
○China Securities Index Co., Ltd. will release seven thematic indexes including CSI Tibet’s Development Index, etc. from August 26.
○As reported by media, Wuliangye Yibin Co., Ltd. (000858.SZ) lifts the factory price of its core product from 609 yuan per bottle to 659 yuan per bottle from August 3.
○Reuters reported that China Investment Corporation has made investment in Didi and Kuaidi, China’s largest taxi-hailing app provider. Didi and Kuaidi is competing with its American peer Uber.
[Industry Information]
○Railway container transportation sees accelerated growth, transformation of modern logistics achieves initial success
------
As reported by Xinhua News Agency, the number of railway containers delivered nationwide from Jan. to July this year reaches 2.82 million, indicating a year-on-year growth of 15.2 percent. And, the delivery in June and July sees a year-on-year growth of 22.4 percent and 29.2 percent, respectively. According to introduction, China Railway Corporation (CRC) launches a string of service measures to strive to develop container transportation, including standardizing charges, quickening turnover of containers, optimizing categories of goods, increasing number of container service spots, developing through transport of railway and waterway, strengthening information service, etc.
Comment: Railway container transportation sees accelerated growth, showing that the transformation of modern logistics achieves initial success. CRC held an on-the-spot meeting on the construction of modern railway logistics in Shenyang in mid-April, emphasizing to promote the construction of logistics and turn railway into a strong competitor in logistics market. Among listed companies, China Railway Tielong Container Logistics Co., Ltd. (600125.SH) is a listed company engaged in railway logistics under CRC; Daqin Railway Co., Ltd. (601006.SH) mainly focuses on coal transportation. Institutions believe that following railway reform will push the company to lower cost, improve efficiency and conduct extensional expansion.
○Electronic invoices for value-added tax pilot in four provinces and cities, market with RMB100 bln to emerge
------
According to the Xinhua News Agency, Beijing, Shanghai, Zhejiang Province and Shenzhen City have initiated the pilot on electronic invoices for value-added tax. It will be promoted to the whole country after the pilot succeeds. According to the State Administration of Taxation, the full promotion of electronic invoices for value-added tax will achieve the unified issuing system, sample, technology and standard for value-added tax invoices, which will be convenient for taxpayers and facilitate the taxation management and the application of big data as well as promote the healthy and rapid development of e-business and domestic trade on the whole.
Comment: Institutes believe that the electronic invoices will be expanded with a large scale in China soon. The number of enterprises accessed to the electronic invoice platform and the number of invoices are likely to surge significantly. The derivative types of business on electronic invoices and the value of the platform data will emerge gradually. The potential market is estimated to be more than 100 billion yuan. Among listed companies, Aisino Corporation (600271.SH) has conducted cooperation with Suning and JD.com in electronic invoices, offline financial settlement, supply-chain finance as well as other industries. TungKong Inc. (002117.SZ), which is under trading suspension, is the only independent third-party electronic invoices platform in China.
[Announcement Interpretation]
○CSF becomes biggest shareholder of Meiyan Jixiang Hydropower
------
Guangdong Meiyan Jixiang Hydropower Co., Ltd. (600868.SH) announced that the China Securities Finance Co., Ltd. (CSF) holds 9,826,800 shares of the company as of July 31, accounting for 0.52 percent of the total share capital and becoming the biggest shareholder of the company. The shareholding of Meiyan Jixiang Hydropower is diversified and its biggest shareholder has changed many times this year, most of which are natural persons.
Humanwell Healthcare (group) Co., Ltd. (600079.SH) announced on the same day that among its top ten shareholders as of July 31, the CSF holds 49,857,000 shares, accounting for 3.88 percent as the second biggest shareholder of the company. Weifu High-Technology Group Co., Ltd. (000581.SZ) announced that the CSF holds 33,377,700 shares of the company as of July 29, accounting for 3.27 percent as the third biggest shareholder of the company.
○Fin CNC Machine renews profit forecast and compensation agreement and resumes trading
------
Shandong Fin CNC Machine Co., Ltd. (002270.SZ) signed a new profit forecast and compensation agreement with parties involved in the reorganization. The main adjustment is that all shareholder of Shanghai Huaming Electric Equipment Manufacturing Co., Ltd. will participate in the profit forecast and compensation and they will perform the compensation obligations with shares, which will better protect the interests of shareholders. In addition, Henan Tong-Da Cable Co., Ltd. (002560.SZ) terminated the plan on equities acquisition and resumed trading.
○Wanwei Updated High-tech to raise RMB2 bln to improve industrial chain
------
Anhui Wanwei Updated High-tech Material Industry Co., Ltd. (600063.SH) proposes to raise 2,004 million yuan by issuing 280 million shares at 6.48 yuan per share through private placement. The proceeds will be used in the special polyethylene alcohol resin project with an annual capacity of 100,000 tons and the comprehensive utilization of industrial residue with an annual capacity of 600,000 tons and recycle economy project. The former will assist the company in improving the whole industrial chain and replacing imported high-value-added products. The latter will reduce pollution and turn waste into resources.
○Sany Heavy Industry saw shareholding increase
------
Sany Group, the substantial shareholder of Sany Heavy Industry Co., Ltd. (600031.SH) completed the shareholding increase plan by increase the shareholding in the company with over 700 million yuan from July 15 to 31. Unisplendour Group, the shareholder of Unisplendour Corporation Limited (000938.SZ), increased the shareholding in the company with 2.16 million shares from July 15 to August 3, accounting for 1.1 percent of the total share capital. Huang Xiaojia, the actual controller of Shantou Dongfeng Printing Co., Ltd. (601515.SH), increased the shareholding in the company with 12.35 million shares from July 15 to August 3, accounting for 1.11 percent of the total share capital. Besides, Sichuan Chuantou Energy Co., Ltd. (600674.SH) intends to repurchase the shares of the companies at no more than 10 yuan per share with 300 million yuan. It is expected to repurchase 30 million shares, accounting for 0.68 percent of the total share capital.
[Financial Reports Express]
○Oriental Times and Jiajia Food propose high share conversion
------
Oriental Times Media Corporation (002175.SZ) proposes a 20-for-10 conversion of capital surplus into shares according to its interim report. Jiajia Food Group Co., Ltd. (002650.SZ) proposes a 15-for-10 conversion of capital surplus into shares according to its interim report. Gansu Gangtai Holding (Group) Co., Ltd. (600687.SH) proposes a 12-for-10 conversion of capital surplus into shares according to its interim report.
[Data Speaks]
○Companies see significant decrease in shareholders in Q2
------
XFA’s statistics show that among the 257 A-share companies released the interim reports, many saw rapid shareholding consolidation and significant decrease in the number of shareholders. Statistics show that 47 companies witnessed a decline of over 20 percent in the number of shareholders. Shandong Lipeng Co., Ltd. (002374.SZ), Sound Environmental Resources Co., Ltd. (000826.SZ), Lier Chemical Co., Ltd. (002258.SZ), Guanghe landscape Culture Communication Co., Ltd, Shanxi (600234.SH), Yifan Xinfu Pharmaceutical Co., Ltd. (002019.SZ) and Shandong Wohua Pharmaceutical Co., Ltd. (002107.SZ) recorded a decrease of over 40 percent in the number of shareholders.
>Cement sector favored by big funds, policies promoting investment might improve industrial development
>Railway container transportation sees accelerated growth, transformation of modern logistics achieves initial success
>CSF becomes shareholder of many companies, Fin CNC Machine resumes trading with bullish news
>Oriental Times proposes high share conversion, companies see significant decrease in shareholders in Q2
[XFA Focus]
○Cement sector favored by big funds, policies promoting investment might improve industrial development
------
The trading volume ranking list shows that Huaxin Cement Co., Ltd. (600801.SH), which soared by the daily 10 percent limit on August 3, was bought by the business department of Citic Securities Company Limited (600030.SH; 06030.HK) on Beijing Financial Street with 60.89 million yuan and by four institutional seats with 128 million yuan, accounting for 45 percent of its intraday turnover; Xinjiang Qingsong Building Materials and Chemicals (Group) Co., Ltd. (600425.SH) was also bought by this business department under Citic Securities and an institutional seats with 69.12 million yuan. Though June and July are the slack season of cement industry, data shows that price drop is weakened compared with previous period and the prices of steel and cement even pick up in July in some areas.
Comment: Along with the accelerated progress of integrated traffic of Beijing-Tianjin-Hebei area and the interconnection of “One Belt and One Road”, new growth space will be expanded for the demand on cement. XFA also learns that the relatively big downward pressure on the economy, difficulties faced by some enterprises in operation, etc. have attracted great attentions of senior management, “promoting investment” remains a good choice in driving economic development at current stage. Policy banks might spare greater support to infrastructure projects including the renovation of shanty towns, railway, road and water conservancy construction, etc.
◆The government portal of Ningxia Hui Autonomous Region released the Opinions on Blending into “One Belt and One Road” and Accelerating Opening Construction of Ningxia on August 3. Local building material enterprises include Ningxia Building Materials Group Co., Ltd. (600449.SH), Ningxia Xinri Hengli Steel Wire Rope Co., Ltd. (600165.SH) and Ningxia Qinglong Pipes Industry Co., Ltd. (002457.SZ), etc.
[XFA Selection]
○Shanghai Stock Exchange suspended four accounts with serious abnormal trading during trading hours and sent oral warning to five accounts with abnormal trading on August 3.
○National Bureau of Statistics made public that the whole e-commerce trading volume in China exceeded 16 trillion yuan last year, indicating a year-on-year growth of 59 percent.
○China Securities Index Co., Ltd. will release seven thematic indexes including CSI Tibet’s Development Index, etc. from August 26.
○As reported by media, Wuliangye Yibin Co., Ltd. (000858.SZ) lifts the factory price of its core product from 609 yuan per bottle to 659 yuan per bottle from August 3.
○Reuters reported that China Investment Corporation has made investment in Didi and Kuaidi, China’s largest taxi-hailing app provider. Didi and Kuaidi is competing with its American peer Uber.
[Industry Information]
○Railway container transportation sees accelerated growth, transformation of modern logistics achieves initial success
------
As reported by Xinhua News Agency, the number of railway containers delivered nationwide from Jan. to July this year reaches 2.82 million, indicating a year-on-year growth of 15.2 percent. And, the delivery in June and July sees a year-on-year growth of 22.4 percent and 29.2 percent, respectively. According to introduction, China Railway Corporation (CRC) launches a string of service measures to strive to develop container transportation, including standardizing charges, quickening turnover of containers, optimizing categories of goods, increasing number of container service spots, developing through transport of railway and waterway, strengthening information service, etc.
Comment: Railway container transportation sees accelerated growth, showing that the transformation of modern logistics achieves initial success. CRC held an on-the-spot meeting on the construction of modern railway logistics in Shenyang in mid-April, emphasizing to promote the construction of logistics and turn railway into a strong competitor in logistics market. Among listed companies, China Railway Tielong Container Logistics Co., Ltd. (600125.SH) is a listed company engaged in railway logistics under CRC; Daqin Railway Co., Ltd. (601006.SH) mainly focuses on coal transportation. Institutions believe that following railway reform will push the company to lower cost, improve efficiency and conduct extensional expansion.
○Electronic invoices for value-added tax pilot in four provinces and cities, market with RMB100 bln to emerge
------
According to the Xinhua News Agency, Beijing, Shanghai, Zhejiang Province and Shenzhen City have initiated the pilot on electronic invoices for value-added tax. It will be promoted to the whole country after the pilot succeeds. According to the State Administration of Taxation, the full promotion of electronic invoices for value-added tax will achieve the unified issuing system, sample, technology and standard for value-added tax invoices, which will be convenient for taxpayers and facilitate the taxation management and the application of big data as well as promote the healthy and rapid development of e-business and domestic trade on the whole.
Comment: Institutes believe that the electronic invoices will be expanded with a large scale in China soon. The number of enterprises accessed to the electronic invoice platform and the number of invoices are likely to surge significantly. The derivative types of business on electronic invoices and the value of the platform data will emerge gradually. The potential market is estimated to be more than 100 billion yuan. Among listed companies, Aisino Corporation (600271.SH) has conducted cooperation with Suning and JD.com in electronic invoices, offline financial settlement, supply-chain finance as well as other industries. TungKong Inc. (002117.SZ), which is under trading suspension, is the only independent third-party electronic invoices platform in China.
[Announcement Interpretation]
○CSF becomes biggest shareholder of Meiyan Jixiang Hydropower
------
Guangdong Meiyan Jixiang Hydropower Co., Ltd. (600868.SH) announced that the China Securities Finance Co., Ltd. (CSF) holds 9,826,800 shares of the company as of July 31, accounting for 0.52 percent of the total share capital and becoming the biggest shareholder of the company. The shareholding of Meiyan Jixiang Hydropower is diversified and its biggest shareholder has changed many times this year, most of which are natural persons.
Humanwell Healthcare (group) Co., Ltd. (600079.SH) announced on the same day that among its top ten shareholders as of July 31, the CSF holds 49,857,000 shares, accounting for 3.88 percent as the second biggest shareholder of the company. Weifu High-Technology Group Co., Ltd. (000581.SZ) announced that the CSF holds 33,377,700 shares of the company as of July 29, accounting for 3.27 percent as the third biggest shareholder of the company.
○Fin CNC Machine renews profit forecast and compensation agreement and resumes trading
------
Shandong Fin CNC Machine Co., Ltd. (002270.SZ) signed a new profit forecast and compensation agreement with parties involved in the reorganization. The main adjustment is that all shareholder of Shanghai Huaming Electric Equipment Manufacturing Co., Ltd. will participate in the profit forecast and compensation and they will perform the compensation obligations with shares, which will better protect the interests of shareholders. In addition, Henan Tong-Da Cable Co., Ltd. (002560.SZ) terminated the plan on equities acquisition and resumed trading.
○Wanwei Updated High-tech to raise RMB2 bln to improve industrial chain
------
Anhui Wanwei Updated High-tech Material Industry Co., Ltd. (600063.SH) proposes to raise 2,004 million yuan by issuing 280 million shares at 6.48 yuan per share through private placement. The proceeds will be used in the special polyethylene alcohol resin project with an annual capacity of 100,000 tons and the comprehensive utilization of industrial residue with an annual capacity of 600,000 tons and recycle economy project. The former will assist the company in improving the whole industrial chain and replacing imported high-value-added products. The latter will reduce pollution and turn waste into resources.
○Sany Heavy Industry saw shareholding increase
------
Sany Group, the substantial shareholder of Sany Heavy Industry Co., Ltd. (600031.SH) completed the shareholding increase plan by increase the shareholding in the company with over 700 million yuan from July 15 to 31. Unisplendour Group, the shareholder of Unisplendour Corporation Limited (000938.SZ), increased the shareholding in the company with 2.16 million shares from July 15 to August 3, accounting for 1.1 percent of the total share capital. Huang Xiaojia, the actual controller of Shantou Dongfeng Printing Co., Ltd. (601515.SH), increased the shareholding in the company with 12.35 million shares from July 15 to August 3, accounting for 1.11 percent of the total share capital. Besides, Sichuan Chuantou Energy Co., Ltd. (600674.SH) intends to repurchase the shares of the companies at no more than 10 yuan per share with 300 million yuan. It is expected to repurchase 30 million shares, accounting for 0.68 percent of the total share capital.
[Financial Reports Express]
○Oriental Times and Jiajia Food propose high share conversion
------
Oriental Times Media Corporation (002175.SZ) proposes a 20-for-10 conversion of capital surplus into shares according to its interim report. Jiajia Food Group Co., Ltd. (002650.SZ) proposes a 15-for-10 conversion of capital surplus into shares according to its interim report. Gansu Gangtai Holding (Group) Co., Ltd. (600687.SH) proposes a 12-for-10 conversion of capital surplus into shares according to its interim report.
[Data Speaks]
○Companies see significant decrease in shareholders in Q2
------
XFA’s statistics show that among the 257 A-share companies released the interim reports, many saw rapid shareholding consolidation and significant decrease in the number of shareholders. Statistics show that 47 companies witnessed a decline of over 20 percent in the number of shareholders. Shandong Lipeng Co., Ltd. (002374.SZ), Sound Environmental Resources Co., Ltd. (000826.SZ), Lier Chemical Co., Ltd. (002258.SZ), Guanghe landscape Culture Communication Co., Ltd, Shanxi (600234.SH), Yifan Xinfu Pharmaceutical Co., Ltd. (002019.SZ) and Shandong Wohua Pharmaceutical Co., Ltd. (002107.SZ) recorded a decrease of over 40 percent in the number of shareholders.
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