[Today’s Guide]
>Production and sale of new energy vehicles to maintain high growth, motor and magnetic materials industries see more orders
>Alibaba Group joins hands with Yongda Automobiles, Internet Plus automobiles enjoys bright future
>Invt Electric, CNNC Hua Yuan Titanium Dioxide and Riland Industry resume trading with good news
>TCL bought by CSF, Songcheng Performance Development and Kunlun Tech propose high share conversion
[XFA Focus]
○Production and sale of new energy vehicles to maintain high growth, motor and magnetic materials industries see more orders
------
The statistics issued by the Ministry of Industry and Information Technology (MIIT) on Aug. 5 shows that the output of new energy automobiles reached 20,400 units in July, representing a year-on-year growth of 250 percent. The production and sale express report of Anhui Jianghuai Automobile Co., Ltd. (600418.SH) shows that its output of electric vehicles was 982 units in July, which is equivalent to 2.4 times of the average monthly output in the first half. Zhejiang Founder Motor Co., Ltd. (002196.SZ) and Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ), manufacturers of new energy drive motors, were inspected by institutes recently. Their sale of electric motors is the focus of the inspections. Beijing Zhong Ke San Huan High-Tech Co., Ltd. (000970.SZ) and Yantai Zhenghai Magnetic Material Co., Ltd. (300224.SZ), manufacturers of neodymium iron boron (NdFeB) magnetic materials, indicated that their orders for new energy automobiles saw high increases.
Comment: The second half is the peak season for the sale of automobiles, not to the exclusion of new energy vehicles. In addition, with the successful bidding of the Winter Olympics, Beijing proposes to reduce the PM2.5 by 40 percent by 2022 and plans to invest tens of billion yuan in new energy vehicles. With the implementation of various local subsidy policies, the gradual improvement of charging facilities and the breaking of the bottlenecks in battery capacity, the production and sale of new energy vehicles is expected to maintain high growth. The motor and magnetic materials industries will boom.
[XFA Selection]
○XFA learnt that Ningbo Port Company Limited (601018.SH) under trading suspension will mull the consolidation with Zhoushan Port. The consolidation of ports across the country will initiate.
○Foreign Minister Wang Yi made 10 new proposals on China-ASEAN cooperation and indicated that China is willing to discuss the overall plan on the interconnection with the ASEAN.
○The establishment of the first registered insurance company in Tibet Autonomous Region is expected to be approved soon. The China Insurance Regulatory Commission (CIRC) encourages insurance companies to participate in the infrastructure construction in Tibet.
○The number of new investors declined 13 percent on a weekly basis last week and the securities margin outflow reached 101.1 billion yuan.
○According to the Xinhua News Agency, the eggs prices across the country have been hiking since July 18 with a total increase of 6.1 percent.
[Industry Information]
○Alibaba Group joins hands with Yongda Automobiles, Internet plus automobiles enjoys bright future
------
Alibaba Automobile Business Division of Alibaba Group Holding Limited and China Yongda Automobiles Services Holdings Limited signed a strategic cooperation agreement on Aug. 5. They will conduct cooperation in six fields, including specialization in customized vehicles, sale of parallel-import vehicles and vehicles delivery at off-line chain service shops, automobile finance, second-hand vehicles and on-line appointment for after-sale services. They plan to host the first Internet-based automobile festival with over 100 million users to participate within half a month, while only millions of visitors attend the automobile expos in Beijing and Shanghai every year.
Comment: It is reported by Reuters that there are still gaps between automobile manufacturers and dealers in Chinese auto market. Therefore, Alibaba Automobile Business Division decides to partner with some dealer groups, and it may conduct cooperation with more dealers in the future. China has become the world’s largest auto market for several consecutive years. The cooperation between Alibaba Group and Yongda Automobiles suggests there is a bright future in Internet plus automobiles. Among the listed companies, Sinomach Automobile Co., Ltd. (600335.SH) put forward a plan for private placement in July, intending to raise 3.2 billion yuan at no less than 29.79 yuan per share for Internet plus automobiles and automobile financial service. China Grand Automotive Services Co., Ltd. (600297.SH) announced in June that it would jointly build an integration platform of second-hand car trading service with Alibaba Group.
○Environmental protection and pollution control restricts capacity release, caustic soda prices to hike
------
According to the XFA, caustic soda enterprises in Zhejiang Province, Chongqing Municipality and so on, raised the prices during the recent week. The caustic soda price has increased by 30 to 100 yuan per ton with the highest increase of five percent. It is known that enterprises currently have no pressure on inventory with the market supply reduces. Meanwhile, due to impact from environmental protection and treatment, some enterprises in Hebei Province, Shandong Province and other provinces lowered the workload of caustic soda equipment and reduced the capacity and supply.
Comment: With the promotion of the enterprise maintenance and environmental protection, the caustic soda industry has a low-level market inventory, and its profitability will possibly improve. Meanwhile, media reported that the National Development and Reform Commission will issue infrastructure bonds with 1 trillion yuan, which will also support the market demand for aluminium oxide in the downstream of the caustic soda industry. In terms of listed companies, Befar Group Co., Ltd. (601678.SH) recorded a caustic soda output of 530,000 ton in 2014 with the sales revenue taking up 20 percent of the main business revenue. Tangshan Sanyou Chemical Industries Co., Ltd. (600409.SH) has a caustic soda capacity of nearly 500,000 ton, greatly contributing to main business profits.
○Standards for smart lock to launched soon, domestic market to activated
------
XFA learns that the New Standards for Anti-Theft Electronic Locks has been drafted and is now under review. At the same time, the Locks Branch of China National Hardware Association will discuss the after-sale service problem of electronic smart locks and come up with unified requirement on after-sale service of electronic smart locks at proper time.
Comment: Most of smart locks are applied in upscale hotels, apartments and villas in China and the usage rate among common domestic consumers records less than 2 percent, while in Japan and Korea, etc., smart lock occupies over 70 percent market share of civil locks. The improvement of standards for smart locks will activate China’s smart lock market. Technology giants including Apple Inc., SAMSUNG, Google Inc., etc. are all involved in this market and have launched relevant products and plans. Among listed companies, Shenzhen Grandland Decoration Group Co., Ltd. (002482.SZ) issues new shares by acquiring Shanghai Udis Digital Identification System Co., Ltd. this June and is now making planning in smart lock area.
[Announcement Interpretation]
○Invt Electric, CNNC Hua Yuan Titanium Dioxide and Riland Industry resume trading with good news
------
Two directors of Shenzhen Invt Electric Co., Ltd. (002334.SZ) will increase shareholding in the company by no less than 6 million yuan after the company resumes trading. Meanwhile, the company announces termination of acquisition plan.
CNNC Hua Yuan Titanium Dioxide Co., Ltd. (002145.SZ) was nodded by the China Securities Regulatory Commission (CSRC) to raise 770 million yuan from its controlling shareholders by issuing 75.34 million shares through private placement to pay off loans and supplement working capital. The company also announced the termination of its acquisition plan.
Shenzhen Riland Industry Co., Ltd. (300154.SZ) will set up a subsidiary in the U.S. with 100 million yuan. The subsidiary will acquire a U.S. company that is mainly engaged in the sales of welding products so as to expand North America market.
○TCL bought by CSF
------
TCL Corporation (000100.SZ) disclosed that as of July 31, China Securities Finance Co., Ltd. (CSF) directly holds 416 million shares of the company, becoming the fifth biggest shareholder of the company.
○Yabang Dyestuff acquires dye assets from related party in cash
------
Jiangsu Yabang Dyestuff Co., Ltd. (603188.SH) plans to acquire 100 percent equities of Jiangsu Daobo Chemical Co., Ltd. which are held by Zhang Hua and other 16 natural person shareholders in cash. The company will raise 271 million yuan through the replaced IPO project of “20,000-ton commercial dye” to pay some of the consideration. The rest consideration will be covered by the company’s self-raised funds. Jiangsu Daobo Chemical is mainly engaged in the production and sales of disperse and solvent dyes. Its products, Red Disperse Dye 343 and Red Disperse Dye 356, rank first in China in terms of production and sales. Its net profit is 23.4 million yuan as of the end of July, 2015 and 8.92 million yuan as of the end of 2014.
○Meihua Holdings and Acrel increased in shareholdings
------
Hu Jun, a shareholder of Meihua Holdings Group Co., Ltd. (600873.SH) increased shareholding in the company by 40.38 million shares from July 16 to Aug. 5 with 360 million yuan, accounting for 1.3 percent of the company’s total share capital. Zhou Zhong, the actual controller of Acrel Co., Ltd. (300286.SZ), increased the shareholding in the company by 1,487,600 shares from July 21 to Aug. 5, accounting for 1.04 percent of the company’s total share capital.
[Financial Reports Express]
○Songcheng Performance Development and Kunlun Tech propose high share conversion
------
Songcheng Performance Development Co., Ltd. (300144.SZ) reports 60 percent of net profit increase in its semiyearly report, proposing a 15-for-10 conversion of capital surplus into shares. Beijing Kunlun Tech Co., Ltd. (300418.SZ) proposes a 30-for-10 conversion of capital surplus into shares in its semiyearly report and plans to raise 2.5 billion yuan through private placement to invest in Internet-based finance P2P platform. Guangzhou Holike Creative Home Co., Ltd. (603898.SH) reports a 15 percent of performance increase in its semiyearly report and proposes a conversion policy of 20 shares for every 10 shares.
○Everbright Securities surges in performance
------
Everbright Securities Company Limited (601788.SH) reports 9.5 billion yuan in operation revenue in its semiyearly report, which is 500 percent of that of the same period of last year. The net profit is 4.878 billion yuan, an increase of 1,180.05 percent year on year. Its year-on-year increase in the operation revenue and the net profit both rank the first among all securities companies. Annualized return on net assets of the company is 34.4 percent, which is more than 10 times of that of the same period of last year. The company’s supervision rating has leapfrogged from C class to A class.
>Production and sale of new energy vehicles to maintain high growth, motor and magnetic materials industries see more orders
>Alibaba Group joins hands with Yongda Automobiles, Internet Plus automobiles enjoys bright future
>Invt Electric, CNNC Hua Yuan Titanium Dioxide and Riland Industry resume trading with good news
>TCL bought by CSF, Songcheng Performance Development and Kunlun Tech propose high share conversion
[XFA Focus]
○Production and sale of new energy vehicles to maintain high growth, motor and magnetic materials industries see more orders
------
The statistics issued by the Ministry of Industry and Information Technology (MIIT) on Aug. 5 shows that the output of new energy automobiles reached 20,400 units in July, representing a year-on-year growth of 250 percent. The production and sale express report of Anhui Jianghuai Automobile Co., Ltd. (600418.SH) shows that its output of electric vehicles was 982 units in July, which is equivalent to 2.4 times of the average monthly output in the first half. Zhejiang Founder Motor Co., Ltd. (002196.SZ) and Zhongshan Broad-Ocean Motor Co., Ltd. (002249.SZ), manufacturers of new energy drive motors, were inspected by institutes recently. Their sale of electric motors is the focus of the inspections. Beijing Zhong Ke San Huan High-Tech Co., Ltd. (000970.SZ) and Yantai Zhenghai Magnetic Material Co., Ltd. (300224.SZ), manufacturers of neodymium iron boron (NdFeB) magnetic materials, indicated that their orders for new energy automobiles saw high increases.
Comment: The second half is the peak season for the sale of automobiles, not to the exclusion of new energy vehicles. In addition, with the successful bidding of the Winter Olympics, Beijing proposes to reduce the PM2.5 by 40 percent by 2022 and plans to invest tens of billion yuan in new energy vehicles. With the implementation of various local subsidy policies, the gradual improvement of charging facilities and the breaking of the bottlenecks in battery capacity, the production and sale of new energy vehicles is expected to maintain high growth. The motor and magnetic materials industries will boom.
[XFA Selection]
○XFA learnt that Ningbo Port Company Limited (601018.SH) under trading suspension will mull the consolidation with Zhoushan Port. The consolidation of ports across the country will initiate.
○Foreign Minister Wang Yi made 10 new proposals on China-ASEAN cooperation and indicated that China is willing to discuss the overall plan on the interconnection with the ASEAN.
○The establishment of the first registered insurance company in Tibet Autonomous Region is expected to be approved soon. The China Insurance Regulatory Commission (CIRC) encourages insurance companies to participate in the infrastructure construction in Tibet.
○The number of new investors declined 13 percent on a weekly basis last week and the securities margin outflow reached 101.1 billion yuan.
○According to the Xinhua News Agency, the eggs prices across the country have been hiking since July 18 with a total increase of 6.1 percent.
[Industry Information]
○Alibaba Group joins hands with Yongda Automobiles, Internet plus automobiles enjoys bright future
------
Alibaba Automobile Business Division of Alibaba Group Holding Limited and China Yongda Automobiles Services Holdings Limited signed a strategic cooperation agreement on Aug. 5. They will conduct cooperation in six fields, including specialization in customized vehicles, sale of parallel-import vehicles and vehicles delivery at off-line chain service shops, automobile finance, second-hand vehicles and on-line appointment for after-sale services. They plan to host the first Internet-based automobile festival with over 100 million users to participate within half a month, while only millions of visitors attend the automobile expos in Beijing and Shanghai every year.
Comment: It is reported by Reuters that there are still gaps between automobile manufacturers and dealers in Chinese auto market. Therefore, Alibaba Automobile Business Division decides to partner with some dealer groups, and it may conduct cooperation with more dealers in the future. China has become the world’s largest auto market for several consecutive years. The cooperation between Alibaba Group and Yongda Automobiles suggests there is a bright future in Internet plus automobiles. Among the listed companies, Sinomach Automobile Co., Ltd. (600335.SH) put forward a plan for private placement in July, intending to raise 3.2 billion yuan at no less than 29.79 yuan per share for Internet plus automobiles and automobile financial service. China Grand Automotive Services Co., Ltd. (600297.SH) announced in June that it would jointly build an integration platform of second-hand car trading service with Alibaba Group.
○Environmental protection and pollution control restricts capacity release, caustic soda prices to hike
------
According to the XFA, caustic soda enterprises in Zhejiang Province, Chongqing Municipality and so on, raised the prices during the recent week. The caustic soda price has increased by 30 to 100 yuan per ton with the highest increase of five percent. It is known that enterprises currently have no pressure on inventory with the market supply reduces. Meanwhile, due to impact from environmental protection and treatment, some enterprises in Hebei Province, Shandong Province and other provinces lowered the workload of caustic soda equipment and reduced the capacity and supply.
Comment: With the promotion of the enterprise maintenance and environmental protection, the caustic soda industry has a low-level market inventory, and its profitability will possibly improve. Meanwhile, media reported that the National Development and Reform Commission will issue infrastructure bonds with 1 trillion yuan, which will also support the market demand for aluminium oxide in the downstream of the caustic soda industry. In terms of listed companies, Befar Group Co., Ltd. (601678.SH) recorded a caustic soda output of 530,000 ton in 2014 with the sales revenue taking up 20 percent of the main business revenue. Tangshan Sanyou Chemical Industries Co., Ltd. (600409.SH) has a caustic soda capacity of nearly 500,000 ton, greatly contributing to main business profits.
○Standards for smart lock to launched soon, domestic market to activated
------
XFA learns that the New Standards for Anti-Theft Electronic Locks has been drafted and is now under review. At the same time, the Locks Branch of China National Hardware Association will discuss the after-sale service problem of electronic smart locks and come up with unified requirement on after-sale service of electronic smart locks at proper time.
Comment: Most of smart locks are applied in upscale hotels, apartments and villas in China and the usage rate among common domestic consumers records less than 2 percent, while in Japan and Korea, etc., smart lock occupies over 70 percent market share of civil locks. The improvement of standards for smart locks will activate China’s smart lock market. Technology giants including Apple Inc., SAMSUNG, Google Inc., etc. are all involved in this market and have launched relevant products and plans. Among listed companies, Shenzhen Grandland Decoration Group Co., Ltd. (002482.SZ) issues new shares by acquiring Shanghai Udis Digital Identification System Co., Ltd. this June and is now making planning in smart lock area.
[Announcement Interpretation]
○Invt Electric, CNNC Hua Yuan Titanium Dioxide and Riland Industry resume trading with good news
------
Two directors of Shenzhen Invt Electric Co., Ltd. (002334.SZ) will increase shareholding in the company by no less than 6 million yuan after the company resumes trading. Meanwhile, the company announces termination of acquisition plan.
CNNC Hua Yuan Titanium Dioxide Co., Ltd. (002145.SZ) was nodded by the China Securities Regulatory Commission (CSRC) to raise 770 million yuan from its controlling shareholders by issuing 75.34 million shares through private placement to pay off loans and supplement working capital. The company also announced the termination of its acquisition plan.
Shenzhen Riland Industry Co., Ltd. (300154.SZ) will set up a subsidiary in the U.S. with 100 million yuan. The subsidiary will acquire a U.S. company that is mainly engaged in the sales of welding products so as to expand North America market.
○TCL bought by CSF
------
TCL Corporation (000100.SZ) disclosed that as of July 31, China Securities Finance Co., Ltd. (CSF) directly holds 416 million shares of the company, becoming the fifth biggest shareholder of the company.
○Yabang Dyestuff acquires dye assets from related party in cash
------
Jiangsu Yabang Dyestuff Co., Ltd. (603188.SH) plans to acquire 100 percent equities of Jiangsu Daobo Chemical Co., Ltd. which are held by Zhang Hua and other 16 natural person shareholders in cash. The company will raise 271 million yuan through the replaced IPO project of “20,000-ton commercial dye” to pay some of the consideration. The rest consideration will be covered by the company’s self-raised funds. Jiangsu Daobo Chemical is mainly engaged in the production and sales of disperse and solvent dyes. Its products, Red Disperse Dye 343 and Red Disperse Dye 356, rank first in China in terms of production and sales. Its net profit is 23.4 million yuan as of the end of July, 2015 and 8.92 million yuan as of the end of 2014.
○Meihua Holdings and Acrel increased in shareholdings
------
Hu Jun, a shareholder of Meihua Holdings Group Co., Ltd. (600873.SH) increased shareholding in the company by 40.38 million shares from July 16 to Aug. 5 with 360 million yuan, accounting for 1.3 percent of the company’s total share capital. Zhou Zhong, the actual controller of Acrel Co., Ltd. (300286.SZ), increased the shareholding in the company by 1,487,600 shares from July 21 to Aug. 5, accounting for 1.04 percent of the company’s total share capital.
[Financial Reports Express]
○Songcheng Performance Development and Kunlun Tech propose high share conversion
------
Songcheng Performance Development Co., Ltd. (300144.SZ) reports 60 percent of net profit increase in its semiyearly report, proposing a 15-for-10 conversion of capital surplus into shares. Beijing Kunlun Tech Co., Ltd. (300418.SZ) proposes a 30-for-10 conversion of capital surplus into shares in its semiyearly report and plans to raise 2.5 billion yuan through private placement to invest in Internet-based finance P2P platform. Guangzhou Holike Creative Home Co., Ltd. (603898.SH) reports a 15 percent of performance increase in its semiyearly report and proposes a conversion policy of 20 shares for every 10 shares.
○Everbright Securities surges in performance
------
Everbright Securities Company Limited (601788.SH) reports 9.5 billion yuan in operation revenue in its semiyearly report, which is 500 percent of that of the same period of last year. The net profit is 4.878 billion yuan, an increase of 1,180.05 percent year on year. Its year-on-year increase in the operation revenue and the net profit both rank the first among all securities companies. Annualized return on net assets of the company is 34.4 percent, which is more than 10 times of that of the same period of last year. The company’s supervision rating has leapfrogged from C class to A class.
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