[Today's Guide]
>Local SOEs reform to accelerate, Yantai defines reform path
>Immovable properties registration sees substantial progress to boost informationization market
>Oil reform focuses on pipeline and network separation, marketization mechanism to benefit private pipeline enterprises
>Han's Laser Technology Industry bought by Central Huijin Investment and CSF, Guangji Phar. bought by Zhu Jiman through secondary market acquisition to 5 pct limit
[SSN Focus]
○ Local SOEs reform to accelerate, Yantai defines reform path
------
According to the information of the State-owned Assets Supervision and Administration Commission of Shandong Provincial Government on Aug. 27, Yantai City issued the Implementation Opinions on Deepening Reform of Municipal Enterprises and Improving the State-owned Assets Management System a few days ago, making it the first prefecture-level city in Shandong Province to officially issue the opinions on the state-owned enterprises (SOEs) reform. The Opinions proposes to initially establish the state-owned assets supervision pattern in 2020, focusing on the capital management, so as to boost the diversity of the main investors for the SOEs, accelerate the steps to establish and improve the modern enterprise system and create favorable environment for reform and innovation.
Comments: The "N 1" top-level design scheme will be released soon. Under this background, the SOEs reform has been comprehensively conducting in various areas. 22 provinces and regions have issued the SOEs reform scheme, with the reform movements accelerated in prefectures. Based on the details, most of the SOEs will implement the mixed-ownership system reform except some key industries and fields. The employee shareholding plan and equity incentive will make breakthroughs, which is beneficial to stimulate the enterprise vitality. Listed companies under the State-owned Assets Supervision and Administration Commission of Yantai City (Yantai SASAC), including Dongfang Electronics Co., Ltd. (000682.SZ), Yantai Moon Co., Ltd. (000811.SZ) and Yantai Tayho Advanced Materials Co., Ltd. (002254.SZ), are in competitive industries. A few days ago, the Yantai Moon acquired the assets of its parent company under the leadership of Yantai SASAC.
[SSN Selection]
○ The State Council Information Office is scheduled to hold a briefing on policies of the State Council on Aug. 28 morning and will introduce policy measures concerning the management of pension fund investment.
○ The Northbound Trading of the Shanghai-Hong Kong Stock Connect sees a total net inflow of 28.7 billion yuan in the first four days in this week, hitting a new record in single-week net inflow since it opened.
○ The People's Bank of China (PBOC) launches a reverse repo of 150 billion yuan on Aug. 27 and the winner of the interest rate bid will be cut by 0.15 percentage points, showing the intention of the market to reduce the cost of market capitals.
○ The Ministry of Finance will raise the quota of municipal bond replacement to 3.2 trillion yuan so as to ease the local governments' debt repayment pressure.
○ Six ministries and commissions, including the Ministry of Housing and Urban-Rural Development, loose the restriction on Chinese housing purchase, which will facilitate foreign enterprises in investing in real estates in China.
○ Bank of Communications Co., Ltd. (03328.HK; 601328.SH) indicated at a performance introduction meeting on Aug. 27 that it will strive to first pilot stock option incentives plan among the state-owned banks.
[Industry Information]
○ Immovable properties registration sees substantial progress to boost informationization market
------
As newly disclosed by the Ministry of Land and Resources (MLR), the State Forestry Administration and the MLR held a handover ceremony on Aug. 26 afternoon in Beijing. The two ministries reached an agreement on the consolidation and sharing of the information on the forest ownership and basic land data, marking a significant progress in the unified registration of immovable properties. According to the requirements of relevant policies, all provinces and regions in China will complete the online pilot operation of the information platform in the second half. The consolidation and the establishment of the database for the registration of immovable properties at all levels will be generally completed in 2016 and an information platform for the registration of immovable properties covering the whole country will be established on the whole in 2017.
Comment: Institutions predict that the establishment of the information platform for the registration of immovable properties will expand demands for software, which will see a potential market of 10 billion yuan. As for companies, Beijing Supermap Software Co., Ltd. (300036.SZ), a company mainly engaged in geographic information system, has obtained orders for registration system of immovable properties from the MLR. It still has a huge market for the replacement of imported systems with homemade ones. Digital China Information Service Company Ltd. (000555.SZ) is actively developing business in rural informatization. The company enjoys strong competiveness in the rural land right confirmation and transfer management software.
○ Oil reform focuses on pipeline and network separation, marketization mechanism to benefit private pipeline enterprises
------
Wang Dongjin, President of PetroChina Company Limited (PTR.NYSE; 00857.HK; 601857.SH) disclosed at the interim performance press conference on Aug. 27 that the overall plan on oil and gas system reform prepared by the National Energy Administration is under soliciting opinions and improvement. The separation and reform of oil and gas pipeline and network meet the orientation of the oil and gas system and industrial reform as well as key contents. It aims to achieve the independence and marketization of pipeline.
Comment: State-owned oil enterprises usually see favorable conditions in the bidding of pipe construction in the past. Private enterprises might obtain more pipe orders if market-oriented reform is realized in the future. In addition, once oil and gas pipe network sees fair opening, the investment in pipe construction will also be accelerated. Among listed companies, Jiangsu Changbao Steeltube Co., Ltd. (002478.SZ), principally engaged in the pipes for exploring oil and gas, is an important supplier of PetroChina Company Limited (601857.SH; 00857.HK) and China Petroleum ＆ Chemical Corporation (600028.SH; 00386.HK); the welded steel pipes for transporting oil and gas, etc. produced by Jiangsu Yulong Steel Pipe Co., Ltd. (601028.SH) are widely applied in the construction of oil and gas network by PetroChina and China Petroleum ＆ Chemical.
[Announcement Interpretation]
○ Han's Laser Technology Industry gains shareholding by Central Huijin Investment and CSF
------
Han's Laser Technology Industry Group Co., Ltd. (002008.SZ) announces that as of Aug. 14, Central Huijin Investment Ltd. and China Securities Finance Corporation Limited (CSF) hold 1.94 percent equities and 5.79 percent equities of the company, respectively. The company's semiyearly report expects its net profit to see a year-on-year growth of 31 percent.
○ Guangji Phar. bought by Zhu Jiman through secondary market acquisition to 5 pct limit
------
Hubei Guangji Pharmaceutical Co., Ltd. (000952.SZ) announces that Zhu Jiman totally holds 12,585,300 shares of the company, accounting for 5 percent of its total share capital and reaching the 5 percent limit of shares bought through secondary market acquisition, through trust plan and individual accounts, etc. during July and Aug. It is noteworthy that the Director of Harbin Gloria Pharmaceuticals Co., Ltd. (002437.SZ) is also named as Zhu Jiman. Since Guangji Pharmaceutical hasn't disclosed the statement of equity changes, the identity cannot be confirmed yet.
○ Phase I employee shareholding plan of Huifeng Agrochemical completed
------
The Phase I employee shareholding plan of Jiangsu Huifeng Agrochemical Co., Ltd. (002496.SZ) has purchased 8.05 million shares of the company at an average price of about 17.62 yuan per share, accounting for 2.03 percent of its total share capital. The plan on acquiring the company's shares has been completed. The latest stock price of the company closed at 14.67 yuan per share.
○ Macrolink Real Estate, Shimge Pump Industry ＆ Yintai Resources see shareholding increase
------
Macrolink Group, the controlling shareholder of Macrolink Real Estate Co., Ltd. (000620.SZ), increased the shareholding in the latter by a total of 20 million shares with 195 billion yuan at an average price of 9.74 yuan per share on Aug. 26 and 27, accounting for 1.05 percent of the company's total share capital. Xu Mintian, the actual controller of Shimge Pump Industry Group Co., Ltd. (002532.SZ), increased the shareholding in the company by a total of 4.48 million shares from July 15 to Aug. 26, accounting for 1.4 percent of the company's total share capital, and will continue to increase shareholding in the company. In addition, seven persons from the directors, supervisors and senior management of the company raised 17.90 million yuan. They increased the shareholding in the company through asset management plans by a total of 1,686,200 shares at an average price of 10.55 yuan per share on Aug. 26, accounting for 0.52 percent of the company's total share capital.
Yintai Resources Co., Ltd. (000975.SZ) announces that as of Aug. 27, the company has repurchased 3,953.700 shares at prices from 12.94 to 10.27 yuan per share. Meanwhile, China Yintai Group, substantial shareholder of the company, increased the shareholding in the company by 1.13 million shares on Aug. 27. So far, about 57.69 million yuan has been cost for the company's repurchasing of shares and the substantial shareholder's shareholding increase.
[Financial Reports Express]
○ Kondarl's performance to surge from Q1-Q3
------
Shenzhen Kondarl (Group) Co., Ltd. (000048.SZ) saw its net profit surging by 2,489 percent year on year in its interim report and forecasts a year-on-year growth of 1,237 to 1,584 percent in net profit in the first three quarters, which is mainly dragged by the confirmed sales revenue of commercial buildings.
○ Snowman proposes high share conversion
------
Fujian Snowman Co., Ltd. (002639.SZ) proposes a 20-for-10 conversion of capital surplus into shares in its semiannual report. Lin Rujie, actual controller of the company, is to increase shareholding in the company by no more than 100 million yuan.
[Trading Trends]
○ GuoxingRongda Real Estate bought by two institutional seats
------
The trading volume ranking list on Aug. 27 shows that Guoxing Rongda Real Estate Co., Ltd. (000838.SZ) is bought by two institutional seats with 47.79 million yuan in total, accounting for 26 percent of the intraday turnover. Meanwhile, another institutional seat sells shares worth 9.35 million yuan.
Comment: Institutions hold that the actual controller of the company is Chongqing Casin Group Co., Ltd. which is mainly engaged in real estate, environmental protection and financial businesses. The recent establishment of an energy management contracting company through common investment and the introduction of environmental protection business into the listed company's system will add new profit growth points to the company.
>Local SOEs reform to accelerate, Yantai defines reform path
>Immovable properties registration sees substantial progress to boost informationization market
>Oil reform focuses on pipeline and network separation, marketization mechanism to benefit private pipeline enterprises
>Han's Laser Technology Industry bought by Central Huijin Investment and CSF, Guangji Phar. bought by Zhu Jiman through secondary market acquisition to 5 pct limit
[SSN Focus]
○ Local SOEs reform to accelerate, Yantai defines reform path
------
According to the information of the State-owned Assets Supervision and Administration Commission of Shandong Provincial Government on Aug. 27, Yantai City issued the Implementation Opinions on Deepening Reform of Municipal Enterprises and Improving the State-owned Assets Management System a few days ago, making it the first prefecture-level city in Shandong Province to officially issue the opinions on the state-owned enterprises (SOEs) reform. The Opinions proposes to initially establish the state-owned assets supervision pattern in 2020, focusing on the capital management, so as to boost the diversity of the main investors for the SOEs, accelerate the steps to establish and improve the modern enterprise system and create favorable environment for reform and innovation.
Comments: The "N 1" top-level design scheme will be released soon. Under this background, the SOEs reform has been comprehensively conducting in various areas. 22 provinces and regions have issued the SOEs reform scheme, with the reform movements accelerated in prefectures. Based on the details, most of the SOEs will implement the mixed-ownership system reform except some key industries and fields. The employee shareholding plan and equity incentive will make breakthroughs, which is beneficial to stimulate the enterprise vitality. Listed companies under the State-owned Assets Supervision and Administration Commission of Yantai City (Yantai SASAC), including Dongfang Electronics Co., Ltd. (000682.SZ), Yantai Moon Co., Ltd. (000811.SZ) and Yantai Tayho Advanced Materials Co., Ltd. (002254.SZ), are in competitive industries. A few days ago, the Yantai Moon acquired the assets of its parent company under the leadership of Yantai SASAC.
[SSN Selection]
○ The State Council Information Office is scheduled to hold a briefing on policies of the State Council on Aug. 28 morning and will introduce policy measures concerning the management of pension fund investment.
○ The Northbound Trading of the Shanghai-Hong Kong Stock Connect sees a total net inflow of 28.7 billion yuan in the first four days in this week, hitting a new record in single-week net inflow since it opened.
○ The People's Bank of China (PBOC) launches a reverse repo of 150 billion yuan on Aug. 27 and the winner of the interest rate bid will be cut by 0.15 percentage points, showing the intention of the market to reduce the cost of market capitals.
○ The Ministry of Finance will raise the quota of municipal bond replacement to 3.2 trillion yuan so as to ease the local governments' debt repayment pressure.
○ Six ministries and commissions, including the Ministry of Housing and Urban-Rural Development, loose the restriction on Chinese housing purchase, which will facilitate foreign enterprises in investing in real estates in China.
○ Bank of Communications Co., Ltd. (03328.HK; 601328.SH) indicated at a performance introduction meeting on Aug. 27 that it will strive to first pilot stock option incentives plan among the state-owned banks.
[Industry Information]
○ Immovable properties registration sees substantial progress to boost informationization market
------
As newly disclosed by the Ministry of Land and Resources (MLR), the State Forestry Administration and the MLR held a handover ceremony on Aug. 26 afternoon in Beijing. The two ministries reached an agreement on the consolidation and sharing of the information on the forest ownership and basic land data, marking a significant progress in the unified registration of immovable properties. According to the requirements of relevant policies, all provinces and regions in China will complete the online pilot operation of the information platform in the second half. The consolidation and the establishment of the database for the registration of immovable properties at all levels will be generally completed in 2016 and an information platform for the registration of immovable properties covering the whole country will be established on the whole in 2017.
Comment: Institutions predict that the establishment of the information platform for the registration of immovable properties will expand demands for software, which will see a potential market of 10 billion yuan. As for companies, Beijing Supermap Software Co., Ltd. (300036.SZ), a company mainly engaged in geographic information system, has obtained orders for registration system of immovable properties from the MLR. It still has a huge market for the replacement of imported systems with homemade ones. Digital China Information Service Company Ltd. (000555.SZ) is actively developing business in rural informatization. The company enjoys strong competiveness in the rural land right confirmation and transfer management software.
○ Oil reform focuses on pipeline and network separation, marketization mechanism to benefit private pipeline enterprises
------
Wang Dongjin, President of PetroChina Company Limited (PTR.NYSE; 00857.HK; 601857.SH) disclosed at the interim performance press conference on Aug. 27 that the overall plan on oil and gas system reform prepared by the National Energy Administration is under soliciting opinions and improvement. The separation and reform of oil and gas pipeline and network meet the orientation of the oil and gas system and industrial reform as well as key contents. It aims to achieve the independence and marketization of pipeline.
Comment: State-owned oil enterprises usually see favorable conditions in the bidding of pipe construction in the past. Private enterprises might obtain more pipe orders if market-oriented reform is realized in the future. In addition, once oil and gas pipe network sees fair opening, the investment in pipe construction will also be accelerated. Among listed companies, Jiangsu Changbao Steeltube Co., Ltd. (002478.SZ), principally engaged in the pipes for exploring oil and gas, is an important supplier of PetroChina Company Limited (601857.SH; 00857.HK) and China Petroleum ＆ Chemical Corporation (600028.SH; 00386.HK); the welded steel pipes for transporting oil and gas, etc. produced by Jiangsu Yulong Steel Pipe Co., Ltd. (601028.SH) are widely applied in the construction of oil and gas network by PetroChina and China Petroleum ＆ Chemical.
[Announcement Interpretation]
○ Han's Laser Technology Industry gains shareholding by Central Huijin Investment and CSF
------
Han's Laser Technology Industry Group Co., Ltd. (002008.SZ) announces that as of Aug. 14, Central Huijin Investment Ltd. and China Securities Finance Corporation Limited (CSF) hold 1.94 percent equities and 5.79 percent equities of the company, respectively. The company's semiyearly report expects its net profit to see a year-on-year growth of 31 percent.
○ Guangji Phar. bought by Zhu Jiman through secondary market acquisition to 5 pct limit
------
Hubei Guangji Pharmaceutical Co., Ltd. (000952.SZ) announces that Zhu Jiman totally holds 12,585,300 shares of the company, accounting for 5 percent of its total share capital and reaching the 5 percent limit of shares bought through secondary market acquisition, through trust plan and individual accounts, etc. during July and Aug. It is noteworthy that the Director of Harbin Gloria Pharmaceuticals Co., Ltd. (002437.SZ) is also named as Zhu Jiman. Since Guangji Pharmaceutical hasn't disclosed the statement of equity changes, the identity cannot be confirmed yet.
○ Phase I employee shareholding plan of Huifeng Agrochemical completed
------
The Phase I employee shareholding plan of Jiangsu Huifeng Agrochemical Co., Ltd. (002496.SZ) has purchased 8.05 million shares of the company at an average price of about 17.62 yuan per share, accounting for 2.03 percent of its total share capital. The plan on acquiring the company's shares has been completed. The latest stock price of the company closed at 14.67 yuan per share.
○ Macrolink Real Estate, Shimge Pump Industry ＆ Yintai Resources see shareholding increase
------
Macrolink Group, the controlling shareholder of Macrolink Real Estate Co., Ltd. (000620.SZ), increased the shareholding in the latter by a total of 20 million shares with 195 billion yuan at an average price of 9.74 yuan per share on Aug. 26 and 27, accounting for 1.05 percent of the company's total share capital. Xu Mintian, the actual controller of Shimge Pump Industry Group Co., Ltd. (002532.SZ), increased the shareholding in the company by a total of 4.48 million shares from July 15 to Aug. 26, accounting for 1.4 percent of the company's total share capital, and will continue to increase shareholding in the company. In addition, seven persons from the directors, supervisors and senior management of the company raised 17.90 million yuan. They increased the shareholding in the company through asset management plans by a total of 1,686,200 shares at an average price of 10.55 yuan per share on Aug. 26, accounting for 0.52 percent of the company's total share capital.
Yintai Resources Co., Ltd. (000975.SZ) announces that as of Aug. 27, the company has repurchased 3,953.700 shares at prices from 12.94 to 10.27 yuan per share. Meanwhile, China Yintai Group, substantial shareholder of the company, increased the shareholding in the company by 1.13 million shares on Aug. 27. So far, about 57.69 million yuan has been cost for the company's repurchasing of shares and the substantial shareholder's shareholding increase.
[Financial Reports Express]
○ Kondarl's performance to surge from Q1-Q3
------
Shenzhen Kondarl (Group) Co., Ltd. (000048.SZ) saw its net profit surging by 2,489 percent year on year in its interim report and forecasts a year-on-year growth of 1,237 to 1,584 percent in net profit in the first three quarters, which is mainly dragged by the confirmed sales revenue of commercial buildings.
○ Snowman proposes high share conversion
------
Fujian Snowman Co., Ltd. (002639.SZ) proposes a 20-for-10 conversion of capital surplus into shares in its semiannual report. Lin Rujie, actual controller of the company, is to increase shareholding in the company by no more than 100 million yuan.
[Trading Trends]
○ GuoxingRongda Real Estate bought by two institutional seats
------
The trading volume ranking list on Aug. 27 shows that Guoxing Rongda Real Estate Co., Ltd. (000838.SZ) is bought by two institutional seats with 47.79 million yuan in total, accounting for 26 percent of the intraday turnover. Meanwhile, another institutional seat sells shares worth 9.35 million yuan.
Comment: Institutions hold that the actual controller of the company is Chongqing Casin Group Co., Ltd. which is mainly engaged in real estate, environmental protection and financial businesses. The recent establishment of an energy management contracting company through common investment and the introduction of environmental protection business into the listed company's system will add new profit growth points to the company.
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