[Today's Guide]
>Shaanxi to apply for Silk Road FTZ to build logistic and tourism center
>Scheme of environment monitoring network launched, monitoring industries to embrace blns-of-yuan market
>Online advertising highlights Tencent's interim report, industry development to speed up
>CSF holds shares of Hybio Phar. and Mindong Electric Power, Jetsen Technology to acquire Huashi.TV
[XFA Focus]
○Shaanxi to apply for Silk Road FTZ to build logistic and tourism center
------
XFA learns that Shaanxi Province is amending the Overall Plan on China (Shaanxi) Pilot Free Trade Zone (FTZ) on the Silk Road Economic Belt. It proposes to replicate Shanghai Free Trade Zone's innovative system in customs supervision and to build Shaanxi FTZ. Centering on transportation logistics, technological innovation, industrial cooperation, cultural tourism and financial cooperation, Shaanxi Province will build itself as the largest logistics distribution center along the Silk Road Economic Belt. It will also establish a 50-billion-yuan development fund in Silk Road industry to support the construction of major projects in the fields of infrastructure, cultural tourism, industrial cooperation and technological innovation. In addition, the second session of Silk Road International Cultural Forum will open on Sept. 13 in Russia. Multilateral ministerial conferences will be held on the talks of cultural, economic and tourism cooperation. The Moscow Consensus will be unveiled then.
Comment: Situated in Mid-East China, Shaanxi Province is China's traffic hub leading to Central Asian countries. It enjoys unique advantages in geographical location and tourism resources. Xi'an Dagang Road Machinery Co., Ltd. (300103.SZ), a local company engaged in engineering machinery, accounts for more than 60 percent of the province's total exports revenue. A great number of Chinese and foreign tourism exhibitions, themed with Silk Road, will be held in Xi'an this year, which will expand the influences of Xi'an Tourism Co., Ltd. (000610.SZ) and Xi'an Qujiang Cultural Tourism Co., Ltd. (600706.SH). The substantial shareholder of Tande Co., Ltd. (600665.SH), a local real estate company in Shaanxi Province, is a state-owned enterprise under Xi'an Hi-tech Industries Development Zone.
[XFA Selection]
○On Aug. 12 RMB's spot rate rebounds after dipping into 6.45, the lowest level of the day. Foreign media indicates that Chinese central bank has "intervened" in the late-day trading to prevent RMB's excessive decline.
○Li Xiaojia, President of Hong Kong Exchanges and Clearing Limited, remarks that the technical preparation work for Shenzhen-Hong Kong Stock Connect has been finished and is waiting for the approval of the supervisory authority.
○Last week the securities margin saw a net outflow of 120.7 billion yuan. The constantly and relatively small amount of net outflow may indicate that the funds deriving from selling stocks are still waiting for chances in the market.
○The Ministry of Water Resources publishes guidance on Aug. 12 to promote the water conservancy work of "sponge cities".
○The central bank announces that it will organize the enterprises manufacturing money detecting devices to participate in the upgrading test, a move to cooperate with the issuing of the new set of 100-yuan banknote.
[Industry Information]
○Scheme of environment monitoring network launched, monitoring industries to embrace blns-of-yuan market
------
The General Office of the State Council on Aug. 12 distributes scheme on the construction of environment monitoring network, requiring establishing national environment quality monitoring network with air, water, soil, etc. included, constructing sky-earth-integrated ecology remote monitoring system, achieving integrated sharing of environment monitoring information and supporting environment monitoring through big data analysis.
Comment: Government's great efforts in pushing forward environment monitoring and increasing law enforcement will urge enterprises to increase investment in emission reduction and pollution treatment. Monitoring market including VOC and water quality will see a potential market size of billions of yuan. Segment areas including equipment supply, operation, maintenance, etc. will see opportunities of market expansion. As for listed companies, China Energy Conservation and Environmental Protection Group, the actual controller of Xi'an Qiyuan Mechanical and Electrical Equipment Co., Ltd. (300140.SZ), plans to acquire 100 percent equities of CECEP L＆T Environmental Technology Co., Ltd. to make planning in the monitoring of environment and energy efficiency information as well as de-nitration catalyst business; Jiangsu Skyray Instrument Co., Ltd. (300165.SZ), a leading domestic enterprise in monitoring device, has its business covering multi areas including environmental protection. The company adds stakes in environmental protection businesses including water treatment by acquiring Suzhou Winner Environmental Technologies Co., Ltd.
○ Online advertising highlights Tencent's interim report, industry development to speed up
------
Tencent Holdings Limited (00700.HK) released the unaudited results for the first half on Aug. 12 evening. Its revenues recorded a year-on-year growth of 20 percent and the operating profit hiked 24 percent year on year. Among its various businesses, the online advertising business contributed an increase of 97 percent in revenues, much higher than the growth of 17 percent in the value-added services business. Brand display advertising revenues increased by 47 percent year on year, which was mainly driven by more video views. Performance-based advertisement increased by 196 percent to 2,057 million yuan, primarily due to the performance-based social advertising on mobile devices.
Comment: The online advertising business of Tencent recorded high growth again. Specifically, the performance-based advertising, which is closely associated with mobile social devices, even recorded an increase of 200 percent. It shows that with the advancing of the Broadband China strategy, the main battlefield for advertising is gradually moving online. The Internet-based marketing is experiencing rapid growth. Among listed companies, Letong Chemical Co., Ltd. (002319.SZ) introduced a plan on private placement in May. It proposed to acquire the equities of two companies to develop digital marketing. Guangbo Group Stock Co., Ltd. (002103.SZ) has completed the acquisition of Yunmedia.com, which is engaged in advertising on navigation websites and other businesses.
[Announcement Interpretation]
○ CSF holds shares of Hybio Phar. and Mindong Electric Power
------
Hybio Pharmaceutical Co., Ltd. (300199.SZ) announced that China Securities Finance Co., Ltd. (CSF) totally holds 29.90 million shares of the company through various accounts by the end of July, accounting for 3.36 percent of its total share capital. The company expects a year-on-year growth of 81.74 percent in net profit according to its interim report. Fujian Mindong Electric Power Limited Company (000993.SZ) also disclosed that the CSF directly holds 4,813,300 stocks of the company, accounting for 1.29 percent of its total share capital.
○ Jetsen Technology to acquire Huashi.TV with RMB3.2 bln through private placement
------
Beijing Jetsen Technology Co., Ltd. (300182.SZ) proposes to acquire 80 percent equities of Huashi.TV by issuing 45.20 million shares at 42.47 yuan per share through private placement and in cash. The transaction price of the 80 percent equities of Huashi.TV is 3.2 billion yuan. The company will also raise another 2.6 billion yuan.
The business of Huashi.TV is to conduct consolidation and operation marketing for the purchased copyright resources and distribute them to the downstream digital media. According to its performance commitment, Huashi.TV's net profit after extraordinary items will be no less than 250 million yuan, 325 million yuan and 423 million yuan from 2015 to 2017. The latest stock price of Jetsen Technology is 31.2 yuan.
○ Etrol Technologies to provide premium for stock option incentive
------
Beijing Etrol Technologies Co., Ltd. (300370.SZ) proposes to grant 5.60 million stock options to five senior management, including its deputy chairman and secretary of the board, taking up 2.3 percent of the total share capital. The exercise price is 21.08 yuan, higher than the latest closing price of 17.62 yuan. The condition on the performance of this stock option incentive requires a net profit growth no less than 9 percent, 17 percent and 25 percent from 2015 to 2017 based on the net profit in 2014
○ Purchase of Phase-I shareholding plan for core management team of By-health completed
------
Up to Aug. 12, Zhuhai Baize Health Management Partnership, the management platform for the first phase of the shareholding plan for the core management team , bought more than 2.44 million shares of By-health Co., Ltd. (300146.SZ), accounting for 0.34 percent of the total share capital. The average price of position is 36.82 yuan. It has completed the purchase with a lock-up period of one year . The latest closing price of shares of the company reaches 36.78 yuan per share.
○ New World bought by Liu Yiqian
------
Shanghai New World Co., Ltd. (600628.SH) disclosed that as it is optimistic about the future development of the company, Guohua Life, a company under Liu Yiqian, bought 26.59 million shares of the company from Aug. 10 to 12, accounting for 5 percent of the total share capital. The stock price of New World continuously surged nearly 30 percent in the last three days.
[Financial Reports Express]
○ Special Electric Motor proposes high share conversion and dividend
------
Jiangxi Special Electric Motor Co., Ltd. (002176.SZ) proposes a 12-for-10 conversion of capital surplus into shares combined with 0.1 yuan dividend for every 10 shares according to its interim report.
○ Yongli Belting to see net profit growth in first three quarters
------
Shanghai Yongli Belting Co., Ltd. (300230.SZ) predicts a year-on-year growth of 30 percent to 60 percent in its net profit in the first three quarters, which is mainly contributed by the consolidation of the financial statements of Qingdao Injelic Mould ＆ Plastics Technology Group Co., Ltd. from June to September.
>Shaanxi to apply for Silk Road FTZ to build logistic and tourism center
>Scheme of environment monitoring network launched, monitoring industries to embrace blns-of-yuan market
>Online advertising highlights Tencent's interim report, industry development to speed up
>CSF holds shares of Hybio Phar. and Mindong Electric Power, Jetsen Technology to acquire Huashi.TV
[XFA Focus]
○Shaanxi to apply for Silk Road FTZ to build logistic and tourism center
------
XFA learns that Shaanxi Province is amending the Overall Plan on China (Shaanxi) Pilot Free Trade Zone (FTZ) on the Silk Road Economic Belt. It proposes to replicate Shanghai Free Trade Zone's innovative system in customs supervision and to build Shaanxi FTZ. Centering on transportation logistics, technological innovation, industrial cooperation, cultural tourism and financial cooperation, Shaanxi Province will build itself as the largest logistics distribution center along the Silk Road Economic Belt. It will also establish a 50-billion-yuan development fund in Silk Road industry to support the construction of major projects in the fields of infrastructure, cultural tourism, industrial cooperation and technological innovation. In addition, the second session of Silk Road International Cultural Forum will open on Sept. 13 in Russia. Multilateral ministerial conferences will be held on the talks of cultural, economic and tourism cooperation. The Moscow Consensus will be unveiled then.
Comment: Situated in Mid-East China, Shaanxi Province is China's traffic hub leading to Central Asian countries. It enjoys unique advantages in geographical location and tourism resources. Xi'an Dagang Road Machinery Co., Ltd. (300103.SZ), a local company engaged in engineering machinery, accounts for more than 60 percent of the province's total exports revenue. A great number of Chinese and foreign tourism exhibitions, themed with Silk Road, will be held in Xi'an this year, which will expand the influences of Xi'an Tourism Co., Ltd. (000610.SZ) and Xi'an Qujiang Cultural Tourism Co., Ltd. (600706.SH). The substantial shareholder of Tande Co., Ltd. (600665.SH), a local real estate company in Shaanxi Province, is a state-owned enterprise under Xi'an Hi-tech Industries Development Zone.
[XFA Selection]
○On Aug. 12 RMB's spot rate rebounds after dipping into 6.45, the lowest level of the day. Foreign media indicates that Chinese central bank has "intervened" in the late-day trading to prevent RMB's excessive decline.
○Li Xiaojia, President of Hong Kong Exchanges and Clearing Limited, remarks that the technical preparation work for Shenzhen-Hong Kong Stock Connect has been finished and is waiting for the approval of the supervisory authority.
○Last week the securities margin saw a net outflow of 120.7 billion yuan. The constantly and relatively small amount of net outflow may indicate that the funds deriving from selling stocks are still waiting for chances in the market.
○The Ministry of Water Resources publishes guidance on Aug. 12 to promote the water conservancy work of "sponge cities".
○The central bank announces that it will organize the enterprises manufacturing money detecting devices to participate in the upgrading test, a move to cooperate with the issuing of the new set of 100-yuan banknote.
[Industry Information]
○Scheme of environment monitoring network launched, monitoring industries to embrace blns-of-yuan market
------
The General Office of the State Council on Aug. 12 distributes scheme on the construction of environment monitoring network, requiring establishing national environment quality monitoring network with air, water, soil, etc. included, constructing sky-earth-integrated ecology remote monitoring system, achieving integrated sharing of environment monitoring information and supporting environment monitoring through big data analysis.
Comment: Government's great efforts in pushing forward environment monitoring and increasing law enforcement will urge enterprises to increase investment in emission reduction and pollution treatment. Monitoring market including VOC and water quality will see a potential market size of billions of yuan. Segment areas including equipment supply, operation, maintenance, etc. will see opportunities of market expansion. As for listed companies, China Energy Conservation and Environmental Protection Group, the actual controller of Xi'an Qiyuan Mechanical and Electrical Equipment Co., Ltd. (300140.SZ), plans to acquire 100 percent equities of CECEP L＆T Environmental Technology Co., Ltd. to make planning in the monitoring of environment and energy efficiency information as well as de-nitration catalyst business; Jiangsu Skyray Instrument Co., Ltd. (300165.SZ), a leading domestic enterprise in monitoring device, has its business covering multi areas including environmental protection. The company adds stakes in environmental protection businesses including water treatment by acquiring Suzhou Winner Environmental Technologies Co., Ltd.
○ Online advertising highlights Tencent's interim report, industry development to speed up
------
Tencent Holdings Limited (00700.HK) released the unaudited results for the first half on Aug. 12 evening. Its revenues recorded a year-on-year growth of 20 percent and the operating profit hiked 24 percent year on year. Among its various businesses, the online advertising business contributed an increase of 97 percent in revenues, much higher than the growth of 17 percent in the value-added services business. Brand display advertising revenues increased by 47 percent year on year, which was mainly driven by more video views. Performance-based advertisement increased by 196 percent to 2,057 million yuan, primarily due to the performance-based social advertising on mobile devices.
Comment: The online advertising business of Tencent recorded high growth again. Specifically, the performance-based advertising, which is closely associated with mobile social devices, even recorded an increase of 200 percent. It shows that with the advancing of the Broadband China strategy, the main battlefield for advertising is gradually moving online. The Internet-based marketing is experiencing rapid growth. Among listed companies, Letong Chemical Co., Ltd. (002319.SZ) introduced a plan on private placement in May. It proposed to acquire the equities of two companies to develop digital marketing. Guangbo Group Stock Co., Ltd. (002103.SZ) has completed the acquisition of Yunmedia.com, which is engaged in advertising on navigation websites and other businesses.
[Announcement Interpretation]
○ CSF holds shares of Hybio Phar. and Mindong Electric Power
------
Hybio Pharmaceutical Co., Ltd. (300199.SZ) announced that China Securities Finance Co., Ltd. (CSF) totally holds 29.90 million shares of the company through various accounts by the end of July, accounting for 3.36 percent of its total share capital. The company expects a year-on-year growth of 81.74 percent in net profit according to its interim report. Fujian Mindong Electric Power Limited Company (000993.SZ) also disclosed that the CSF directly holds 4,813,300 stocks of the company, accounting for 1.29 percent of its total share capital.
○ Jetsen Technology to acquire Huashi.TV with RMB3.2 bln through private placement
------
Beijing Jetsen Technology Co., Ltd. (300182.SZ) proposes to acquire 80 percent equities of Huashi.TV by issuing 45.20 million shares at 42.47 yuan per share through private placement and in cash. The transaction price of the 80 percent equities of Huashi.TV is 3.2 billion yuan. The company will also raise another 2.6 billion yuan.
The business of Huashi.TV is to conduct consolidation and operation marketing for the purchased copyright resources and distribute them to the downstream digital media. According to its performance commitment, Huashi.TV's net profit after extraordinary items will be no less than 250 million yuan, 325 million yuan and 423 million yuan from 2015 to 2017. The latest stock price of Jetsen Technology is 31.2 yuan.
○ Etrol Technologies to provide premium for stock option incentive
------
Beijing Etrol Technologies Co., Ltd. (300370.SZ) proposes to grant 5.60 million stock options to five senior management, including its deputy chairman and secretary of the board, taking up 2.3 percent of the total share capital. The exercise price is 21.08 yuan, higher than the latest closing price of 17.62 yuan. The condition on the performance of this stock option incentive requires a net profit growth no less than 9 percent, 17 percent and 25 percent from 2015 to 2017 based on the net profit in 2014
○ Purchase of Phase-I shareholding plan for core management team of By-health completed
------
Up to Aug. 12, Zhuhai Baize Health Management Partnership, the management platform for the first phase of the shareholding plan for the core management team , bought more than 2.44 million shares of By-health Co., Ltd. (300146.SZ), accounting for 0.34 percent of the total share capital. The average price of position is 36.82 yuan. It has completed the purchase with a lock-up period of one year . The latest closing price of shares of the company reaches 36.78 yuan per share.
○ New World bought by Liu Yiqian
------
Shanghai New World Co., Ltd. (600628.SH) disclosed that as it is optimistic about the future development of the company, Guohua Life, a company under Liu Yiqian, bought 26.59 million shares of the company from Aug. 10 to 12, accounting for 5 percent of the total share capital. The stock price of New World continuously surged nearly 30 percent in the last three days.
[Financial Reports Express]
○ Special Electric Motor proposes high share conversion and dividend
------
Jiangxi Special Electric Motor Co., Ltd. (002176.SZ) proposes a 12-for-10 conversion of capital surplus into shares combined with 0.1 yuan dividend for every 10 shares according to its interim report.
○ Yongli Belting to see net profit growth in first three quarters
------
Shanghai Yongli Belting Co., Ltd. (300230.SZ) predicts a year-on-year growth of 30 percent to 60 percent in its net profit in the first three quarters, which is mainly contributed by the consolidation of the financial statements of Qingdao Injelic Mould ＆ Plastics Technology Group Co., Ltd. from June to September.
Latest comments