[Today's Guide]
>50th anniversary of Tibet autonomous region draws near, more supportive policies might introduced
>Alibaba Auto Day saw strong sales, auto e-commerce becomes general trend
>Oil and gas exploitation at South China Sea embraces major breakthrough, marine engineering equipment sees much opportunities...
>Sunflower Phar. purchases Longzhong Phar., Yotrio Group proposes high share conversion and dividend
[SSN Focus]
○50th anniversary of Tibet autonomous region draws near, more supportive policies might introduced
------
The Xinhua News Agency and CCTV News continue the series of report on "Glorious 50 Years, Beautiful New Tibet" on Aug.24. The 50th anniversary of the founding of the Tibet autonomous region, which falls on Sep.1, is very close now and next year will mark the 65th anniversary of the peaceful liberation of Tibet. Five Tibet work conferences were held by the central government since the reform and opening up. The senior management of the central government pays close attention to the work in Tibet this year. Institutions predict that the sixth Tibet work forum will be convened soon.
Comment: According to the thirteenth five-year plan for Tibet which is under compilation now, developing characteristic competitive industries including tourism, improving modern comprehensive traffic network, etc. are prioritized. Relevant areas might gain policy support first. As to listed companies, Tibet Galaxy Science ＆ Technology Development Co., Ltd. (000752.SZ), principally engaged in beer business, indicates that it will play full role of the unique brand advantage of Lasa Beer to improve its market occupancy; Tibet Tianlu Co., Ltd. (600326.SH), a leading enterprise in engineering construction in Tibet area, plans to raise 1 billion yuan through private placement to expand the production and sales scale of cement.
[SSN Selection]
○The National Development and Reform Commission (NDRC) stated in a circulation on Aug. 24 that the economy is stabilizing slowly and main economic indicators will achieve the full-year target.
○A package of amendments on education law (draft) is submitted on Aug. 24 to the Standing Committee of the National People's Congress for approval. The amendments propose to relax the charging standards in profitable private schools.
○The draft revision of Air Pollution Prevention Law submitted for approval on Aug. 24 proposes to improve oil product standards and strictly constrain oil enterprises.
○Wang Xiaochu, president of China Telecom Corporation Limited (NYSE: CHA; 00728.HK), swapped with Chang Xiaobing, president of China United Network Communications Limited (600050.SH). Shang Bing assumed the position of president of China Mobile Limited (NYSE:CHL; 00941.HK).
○The new version of Beijing industrial prohibition and restriction list proposes to strictly control headquarter enterprises from relocating at the six districts of Beijing including Chaoyang District, etc. so as to decrease the population density in these six districts of Beijing.
[Industry Information]
○Alibaba Auto Day saw strong sales, auto e-commerce becomes general trend
------
According to the data released by Alibaba Auto Business Department on Aug. 24, during the Alibaba Auto Day, 1,822 units of the first trial special offer of complete vehicle, Chevrolet Epica, were sold in 15 days, with a sales volume of 130 million yuan. Last year, Chevrolet, with more than 600 retail stores nationwide, sold 16,000 units of Epica in total. This suggests that Alibaba Auto has completed over-one-month sales in its all offline retail stores. It is disclosed that multiple automobile manufacturers are consulting with Alibaba Auto Business Department, in hope that they could sell their vehicles around the nation through special offer of complete vehicles and hence expand new market.
Comment: Alibaba established the Auto Business Department in April this year. Its latest sales tell that the online car business has won initial victory. Institutions hold that automobile e-commerce is an irresistible trend from the perspective of industry demand and supply, because previously this industry has been relying on 4S shops run by offline dealers and so the penetration rate of e-commerce is really low, and the sales scale of new cars sold online has been verging on one trillion yuan. Among the listed companies, Zhejiang Material Industrial Zhongda Yuantong Group Co., Ltd. (600704.SH) has an automobile e-commerce platform whose website is www.mycjj.com; Mango Automobile Sales Company Limited, a subsidiary of Happigo Home Shopping Co., Ltd. (300413.SZ) is also engaged in automobile e-commerce.
○Oil and gas exploitation at South China Sea embraces major breakthrough, marine engineering equipment sees much opportunities
------
China National Offshore Oil Corporation (CNOOC) announces on Aug. 24 that China's first deep-water high-temperature and high-pressure exploratory well dug by "HYSY-981" deep-water drilling platform has been completed on South China Sea, indicating that a major technological breakthrough has been made to tackle the series of difficulties China meets when exploiting the oil and gas at South China Sea. This has profound significance for advancing the oil and gas resources development at South China Sea. According to related people in CNOOC, this well is an early-stage exploratory well, and after analysis of the geological information, if it's found that the resources are exploitable, more exploratory wells will be deployed in the next step.
Comment: Prospecting well and finishing drilling under high temperature and high pressure in deep-water set an example for oil and gas development in the South China Sea in the future. The planning on ocean main functional area of China released recently proposed to improve the ability in ocean resource development and implement strategy of a maritime power. Marine engineering equipment industry is expected to see double opportunities from demand and policies. Offshore Oil Engineering Co., Ltd. (600583.SH) is specialized in lump-sum contracting of ocean engineering. China Oilfield Services Limited (601808.SH) owns high market share in offshore oilfield drilling services and technical equipment.
[Announcement Interpretation]
○ Sunflower Phar. purchases Longzhong Phar. with over RMB100 mln to enrich its drugs for children and women
------
Sunflower Pharmaceutical Group Co., Ltd. (002737.SZ) plans to purchase 55 percent equity of Hubei Xiangyang Longzhong Pharmaceutical Group Co., Ltd. at 110 million yuan. After the transaction is finished, the company will become the controlling shareholder of Longzhong Phar. and indirectly holds 55 percent equity of Hubei Wudang Jinding Pharmaceutical Company Limited. Longzhong Phar. and Jinding Phar. possess 176 drug approval numbers, some of which are exclusive to China. The acquisition will supplement important products to children's drugs of Sunflower brand, gynecological drugs and drugs for cold and enlarge the product portfolio of the company. The price-earnings ratio of this acquisition is about 13 times.
○ Oriental Yuhong Waterproof Technology to repurchase with RMB400 mln at no more than RMB20 per share
------
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ) intends to repurchase the company's shares with a total amount of no more than 400 million yuan at a share price of no more than 20 yuan per share. The latest stock price of the company's share is 18 yuan. It is expected that the company will repurchase a maximum of 20 million shares, accounting for 2.40 percent of the total share capital.
○ Chasesun Phar. sees shareholding increase
------
Tianjin Datong Investment Group Co. Ltd., the controlling shareholder of Tianjin Chasesun Pharmaceutical Co., Ltd. (300026.SZ), increased the shareholding in Chasesun Phar. from Aug. 20 to 24 by over 5.40 million shares with a total capital over 100 million yuan at an average price of 18.76 yuan. Yang Huide, the actual controller of Juli Sling Co., Ltd. (002342.SZ), increased the shareholding on Aug. 24, with 2,605,600 shares at an average price of 6.13 yuan. The top three shareholders of Net263 Ltd. (002467.SZ) increased the shareholding on Aug. 24, with 992,200 shares at an average price of 12.29 yuan. Shenzhen IMT Holdings Co., Ltd., the shareholder of Shenzhen Terca Technology Co., Ltd. (002213.SZ), increased the shareholding in on Aug. 24 with 1.33 million shares at an average price of 12.76 yuan.
○ Jianghai Capacitor to raise RMB1.2 bln through private placement as super capacitor investment
------
Nantong Jianghai Capacitor Co., Ltd. (002484.SZ) proposes to raise 1.2 billion yuan by issuing shares at no less than 17.65 yuan per share through private placement to invest the super capacitor and thin-film capacitor projects. The super capacitor is a new energy storage device with such advantages as short charging period, long service life, nice temperature characteristic, energy saving and environment protection. The latest stock price of the company is 17.83 yuan.
[Financial Reports Express]
○ Yotrio Group proposes high share conversion and dividend
------
Yotrio Group Co., Ltd. (002489.SZ) announced a year-on-year growth of 192 percent in net profit in the semiannual report. It proposes a 25-for-10 conversion of capital surplus into shares combined with 3.5 yuan dividend for every 10 shares. Beijing Tensyn Digital Marketing Technology Joint Stock Company (300392.SZ) announced a year-on-year growth of 48 percent in net profit in the semiannual report. The company proposes a 20-for-10 conversion of capital surplus into shares. Jiajia Food Group Co., Ltd. (002650.SZ) proposes a 15-for-10 conversion of capital surplus into shares according to its semiannual report.
[Trading Trends]
○ Two institutes buy Hunan Gold
------
The trading volume ranking list on Aug. 24 shows that two institutes bought Hunan Gold Corporation Limited (002155.SZ) with a total of 40.52 million yuan, accounting for 7.3 percent of its intraday turnover. Meanwhile, an institute sold it with 9.02 million yuan
Comment: Institutes believe that as a result of the fluctuation of the global financial market, the gold prices may hike as a result of the hedge sentiment in the market, which will benefit the whole gold industrial chain. The gold reserve of the company nearly doubled after the acquisition of Huang Jin Dong Mining Industry Limited Company of Hunan. The assets acquired provided guarantees to profit growth.
[Trading Alarms]
○ Graded funds see wave of downward conversion, B shares may suffer great losses
------
With the falling of stock indexes, certain graded funds fell below the limit for downward conversion. As at Aug. 24 9:00pm, Penghua CSI 800 Stock Index of Insurance Classification Securities, Gfund 50 and other funds announced the net value on the day with their B-share net value falling below 0.25, triggering the conditions for downward conversion. As the trading prices of such B shares in the secondary market are far above their net value, the holders of B shares will suffer great losses even the stock index recovers on Aug. 25. Fullgoal ChiNext Board Index Fund, Changsheng Tongrui and other funds have not announced the net value at the press time may also meet the conditions for downward conversion. Investors are advised to pay particular attention on B shares.
>50th anniversary of Tibet autonomous region draws near, more supportive policies might introduced
>Alibaba Auto Day saw strong sales, auto e-commerce becomes general trend
>Oil and gas exploitation at South China Sea embraces major breakthrough, marine engineering equipment sees much opportunities...
>Sunflower Phar. purchases Longzhong Phar., Yotrio Group proposes high share conversion and dividend
[SSN Focus]
○50th anniversary of Tibet autonomous region draws near, more supportive policies might introduced
------
The Xinhua News Agency and CCTV News continue the series of report on "Glorious 50 Years, Beautiful New Tibet" on Aug.24. The 50th anniversary of the founding of the Tibet autonomous region, which falls on Sep.1, is very close now and next year will mark the 65th anniversary of the peaceful liberation of Tibet. Five Tibet work conferences were held by the central government since the reform and opening up. The senior management of the central government pays close attention to the work in Tibet this year. Institutions predict that the sixth Tibet work forum will be convened soon.
Comment: According to the thirteenth five-year plan for Tibet which is under compilation now, developing characteristic competitive industries including tourism, improving modern comprehensive traffic network, etc. are prioritized. Relevant areas might gain policy support first. As to listed companies, Tibet Galaxy Science ＆ Technology Development Co., Ltd. (000752.SZ), principally engaged in beer business, indicates that it will play full role of the unique brand advantage of Lasa Beer to improve its market occupancy; Tibet Tianlu Co., Ltd. (600326.SH), a leading enterprise in engineering construction in Tibet area, plans to raise 1 billion yuan through private placement to expand the production and sales scale of cement.
[SSN Selection]
○The National Development and Reform Commission (NDRC) stated in a circulation on Aug. 24 that the economy is stabilizing slowly and main economic indicators will achieve the full-year target.
○A package of amendments on education law (draft) is submitted on Aug. 24 to the Standing Committee of the National People's Congress for approval. The amendments propose to relax the charging standards in profitable private schools.
○The draft revision of Air Pollution Prevention Law submitted for approval on Aug. 24 proposes to improve oil product standards and strictly constrain oil enterprises.
○Wang Xiaochu, president of China Telecom Corporation Limited (NYSE: CHA; 00728.HK), swapped with Chang Xiaobing, president of China United Network Communications Limited (600050.SH). Shang Bing assumed the position of president of China Mobile Limited (NYSE:CHL; 00941.HK).
○The new version of Beijing industrial prohibition and restriction list proposes to strictly control headquarter enterprises from relocating at the six districts of Beijing including Chaoyang District, etc. so as to decrease the population density in these six districts of Beijing.
[Industry Information]
○Alibaba Auto Day saw strong sales, auto e-commerce becomes general trend
------
According to the data released by Alibaba Auto Business Department on Aug. 24, during the Alibaba Auto Day, 1,822 units of the first trial special offer of complete vehicle, Chevrolet Epica, were sold in 15 days, with a sales volume of 130 million yuan. Last year, Chevrolet, with more than 600 retail stores nationwide, sold 16,000 units of Epica in total. This suggests that Alibaba Auto has completed over-one-month sales in its all offline retail stores. It is disclosed that multiple automobile manufacturers are consulting with Alibaba Auto Business Department, in hope that they could sell their vehicles around the nation through special offer of complete vehicles and hence expand new market.
Comment: Alibaba established the Auto Business Department in April this year. Its latest sales tell that the online car business has won initial victory. Institutions hold that automobile e-commerce is an irresistible trend from the perspective of industry demand and supply, because previously this industry has been relying on 4S shops run by offline dealers and so the penetration rate of e-commerce is really low, and the sales scale of new cars sold online has been verging on one trillion yuan. Among the listed companies, Zhejiang Material Industrial Zhongda Yuantong Group Co., Ltd. (600704.SH) has an automobile e-commerce platform whose website is www.mycjj.com; Mango Automobile Sales Company Limited, a subsidiary of Happigo Home Shopping Co., Ltd. (300413.SZ) is also engaged in automobile e-commerce.
○Oil and gas exploitation at South China Sea embraces major breakthrough, marine engineering equipment sees much opportunities
------
China National Offshore Oil Corporation (CNOOC) announces on Aug. 24 that China's first deep-water high-temperature and high-pressure exploratory well dug by "HYSY-981" deep-water drilling platform has been completed on South China Sea, indicating that a major technological breakthrough has been made to tackle the series of difficulties China meets when exploiting the oil and gas at South China Sea. This has profound significance for advancing the oil and gas resources development at South China Sea. According to related people in CNOOC, this well is an early-stage exploratory well, and after analysis of the geological information, if it's found that the resources are exploitable, more exploratory wells will be deployed in the next step.
Comment: Prospecting well and finishing drilling under high temperature and high pressure in deep-water set an example for oil and gas development in the South China Sea in the future. The planning on ocean main functional area of China released recently proposed to improve the ability in ocean resource development and implement strategy of a maritime power. Marine engineering equipment industry is expected to see double opportunities from demand and policies. Offshore Oil Engineering Co., Ltd. (600583.SH) is specialized in lump-sum contracting of ocean engineering. China Oilfield Services Limited (601808.SH) owns high market share in offshore oilfield drilling services and technical equipment.
[Announcement Interpretation]
○ Sunflower Phar. purchases Longzhong Phar. with over RMB100 mln to enrich its drugs for children and women
------
Sunflower Pharmaceutical Group Co., Ltd. (002737.SZ) plans to purchase 55 percent equity of Hubei Xiangyang Longzhong Pharmaceutical Group Co., Ltd. at 110 million yuan. After the transaction is finished, the company will become the controlling shareholder of Longzhong Phar. and indirectly holds 55 percent equity of Hubei Wudang Jinding Pharmaceutical Company Limited. Longzhong Phar. and Jinding Phar. possess 176 drug approval numbers, some of which are exclusive to China. The acquisition will supplement important products to children's drugs of Sunflower brand, gynecological drugs and drugs for cold and enlarge the product portfolio of the company. The price-earnings ratio of this acquisition is about 13 times.
○ Oriental Yuhong Waterproof Technology to repurchase with RMB400 mln at no more than RMB20 per share
------
Beijing Oriental Yuhong Waterproof Technology Co., Ltd. (002271.SZ) intends to repurchase the company's shares with a total amount of no more than 400 million yuan at a share price of no more than 20 yuan per share. The latest stock price of the company's share is 18 yuan. It is expected that the company will repurchase a maximum of 20 million shares, accounting for 2.40 percent of the total share capital.
○ Chasesun Phar. sees shareholding increase
------
Tianjin Datong Investment Group Co. Ltd., the controlling shareholder of Tianjin Chasesun Pharmaceutical Co., Ltd. (300026.SZ), increased the shareholding in Chasesun Phar. from Aug. 20 to 24 by over 5.40 million shares with a total capital over 100 million yuan at an average price of 18.76 yuan. Yang Huide, the actual controller of Juli Sling Co., Ltd. (002342.SZ), increased the shareholding on Aug. 24, with 2,605,600 shares at an average price of 6.13 yuan. The top three shareholders of Net263 Ltd. (002467.SZ) increased the shareholding on Aug. 24, with 992,200 shares at an average price of 12.29 yuan. Shenzhen IMT Holdings Co., Ltd., the shareholder of Shenzhen Terca Technology Co., Ltd. (002213.SZ), increased the shareholding in on Aug. 24 with 1.33 million shares at an average price of 12.76 yuan.
○ Jianghai Capacitor to raise RMB1.2 bln through private placement as super capacitor investment
------
Nantong Jianghai Capacitor Co., Ltd. (002484.SZ) proposes to raise 1.2 billion yuan by issuing shares at no less than 17.65 yuan per share through private placement to invest the super capacitor and thin-film capacitor projects. The super capacitor is a new energy storage device with such advantages as short charging period, long service life, nice temperature characteristic, energy saving and environment protection. The latest stock price of the company is 17.83 yuan.
[Financial Reports Express]
○ Yotrio Group proposes high share conversion and dividend
------
Yotrio Group Co., Ltd. (002489.SZ) announced a year-on-year growth of 192 percent in net profit in the semiannual report. It proposes a 25-for-10 conversion of capital surplus into shares combined with 3.5 yuan dividend for every 10 shares. Beijing Tensyn Digital Marketing Technology Joint Stock Company (300392.SZ) announced a year-on-year growth of 48 percent in net profit in the semiannual report. The company proposes a 20-for-10 conversion of capital surplus into shares. Jiajia Food Group Co., Ltd. (002650.SZ) proposes a 15-for-10 conversion of capital surplus into shares according to its semiannual report.
[Trading Trends]
○ Two institutes buy Hunan Gold
------
The trading volume ranking list on Aug. 24 shows that two institutes bought Hunan Gold Corporation Limited (002155.SZ) with a total of 40.52 million yuan, accounting for 7.3 percent of its intraday turnover. Meanwhile, an institute sold it with 9.02 million yuan
Comment: Institutes believe that as a result of the fluctuation of the global financial market, the gold prices may hike as a result of the hedge sentiment in the market, which will benefit the whole gold industrial chain. The gold reserve of the company nearly doubled after the acquisition of Huang Jin Dong Mining Industry Limited Company of Hunan. The assets acquired provided guarantees to profit growth.
[Trading Alarms]
○ Graded funds see wave of downward conversion, B shares may suffer great losses
------
With the falling of stock indexes, certain graded funds fell below the limit for downward conversion. As at Aug. 24 9:00pm, Penghua CSI 800 Stock Index of Insurance Classification Securities, Gfund 50 and other funds announced the net value on the day with their B-share net value falling below 0.25, triggering the conditions for downward conversion. As the trading prices of such B shares in the secondary market are far above their net value, the holders of B shares will suffer great losses even the stock index recovers on Aug. 25. Fullgoal ChiNext Board Index Fund, Changsheng Tongrui and other funds have not announced the net value at the press time may also meet the conditions for downward conversion. Investors are advised to pay particular attention on B shares.
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