[Today's Guide]
> New energy vehicles output speed up, lithium battery performance to maintain high growth
> More military-civil integration policies to launched, NEA to release planning on nuclear power
> Huang Yongfei buys shares of But'one Information, Ellassay Fashion to purchase German high-end lady's dress brand
> Visual China to invest in Sima Yan Culture to develop copybood for calligraphy, Ningbo Donly sees shareholding increases
[SSN Focus]
○ New energy vehicles output speed up, lithium battery performance to maintain high growth
------
According to the statistics of the Ministry of Industry and Information Technology (MIIT), the output of new energy vehicles in China reached 24,500 units in August, representing a growth of nearly 400 percent year on year, the highest year-on-year growth since February. A total of 123,500 new energy vehicles have been produced in the first eight months, increases 300 percent year on year. Insiders of BYD Company Limited (01211.HK; 002594.SZ) indicated that its plug-in hybrid vehicle "Qin" has been produced in a full capacity and still cannot meet the orders.
Comment: Based on the current momentum, the annual sales target of 200,000 new energy vehicles, which used to be remote, is likely to be achieved in advance. With the implementation of detailed subsidies and the gradual improvement of charging facilities as well as the implementation of the "strictest regulations on oil consumption", the new energy vehicle market will continue to expand. As a core component, the lithium battery industry will see high growth in performance. It is estimated that the dynamic lithium battery demand will reach about 12.5GWh this year while the actual capacity can only meet 40 percent. Jiangsu Dongyuan Electrical Group Co., Ltd. (002074.SZ) and Do-Fluoride Chemicals Co., Ltd. (002407.SZ) are expected to make more investments in lithium battery. Sichuan Tianqi Lithium Industries, Inc. (002466.SZ) owns advantages in lithium ore resources and is expected to maintain the high performance growth in the first half.
[SSN Selection]
○ The Ministry of Finance issued a document on Sept. 8 to implement more powerful fiscal policies and pool funds to accelerate the implementation of key construction projects.
○ Bloomberg reported that the first batch of investment projects with 1.2 trillion yuan special construction bonds have been determined, including the urban rail transportation, the railway construction in central and western China and underground pipelines.
○ The central bank conducted the reverse repo with 150 billion yuan on Sept. 8. Institutes believe it is likely to cut the reserve requirement ratio in short term.
○ Miao Wei, Minister of the Ministry of Industry and Information Technology (MIIT), indicated that it will strengthen the top design for intelligent manufacturing and prepare special plans.
○ The merger and reorganization of Shenzhen Fountain Corporation (000005.SZ) and Yunnan Chihong Zinc ＆ Germanium Co., Ltd. (600497.SH) was conditionally approved. The merger and reorganization of Zhejiang New Jialian Electronics Co., Ltd. (002188.SZ) was passed unconditionally.
[Industry Information]
○ Opening of military industry accelerated, more military-civil integration policies to launched
------
The State Administration of Science, Technology and Industry for National Defense (SASTIND) and the Chinese PLA General Armament Department jointly releases the new permit list on scientific research and production of weaponry on Sept. 8, cutting about two-thirds permits compared with the 2005 version. It is also learnt by SSN that under the idea of "general security" and "general defense", more policy dividend are expected to be launched later.
Comment: The largely-narrowed scope of permit management helps to promote the opening of the military industry, accelerate the participation of advantageous privately-owned enterprises in the fields of weaponry research, production and maintenance. Privately-owned enterprises involved in the military industry might embrace incremental market. As to listed companies, the products of Anhui Tongzhi Electrical Control Technology Company Limited, a subsidiary of Jiangsu Yinhe Electronics Co., Ltd. (002519.SZ), is mainly applied in military areas including tank and self-propelled gun; Shifang Minri Astronavigation Industry Co., Ltd., a company planned to be purchased by Xinjiang Machinery Research Institute Co., Ltd. (300159.SZ), produces aircraft components including airplane, guided missile, rocket, etc. The purchase scheme has been unconditionally approved by the acquisition and reorganization commission of China Securities Regulatory Commission.
○ Planning on nuclear power to unveiled, newly-commenced projects to bring orders
------
Li Zhi, chief economist of the National Energy Administration (NEA), discloses on Sept. 8 that the NEA is formulating the energy industry's implementation scheme for "Made in China 2025" to make national strategy more specific in the industry. Series of planning or special action plans concerning nuclear power, energy storage and energy material will be released one after another. It is also learnt by SSN that the "Hualong No.1" Fangchenggang Phase II Project under China General Nuclear Power Corporation (CGNPC) now enters the last stage for project approval and security review. The project might be started in Oct. or Nov.
Comment: Under the promotion of the restart of nuclear power and the "going out" strategy, relevant companies involved in the industrial chain might expect substantial orders. The launch of following planning will also create sound policy environment. As to listed companies, Zhefu Holding Group Co., Ltd. (002266.SZ) provides Hualong No.1 nuclear technology with control rod drive products; Shanghai Electric Group Company Limited (601727.SH; 02727.HK) supplies Hualong No.1 nuclear technology with steam turbine generator unit.
[Announcement Interpretation]
○ Huang Yongfei buys shares of But'one Information to 5 pct limit
------
But'one Information Corporation, Xi'an (600455.SH) announced that from July 9 to Sept. 2, persons acting in concert including Huang Yongfei, Gu Ping and Huang Kaikai, together held 3.57 million shares in the company with an average price of 42.25 yuan per share, accounting for 5.71 percent of the total share capital. The total amount reached about 151 million yuan. These shareholders contributed their shareholding increase to that they are rose about the company's prospect. They hope to benefit from the appreciation of the shares and promise not to cut the shareholding in the following six months.
In addition, Tianjin Commercial Union Holdings Limited, the second largest shareholder of Tianjin Quanyechang (Group) Co., Ltd. (600821.SH), increased the shareholding in the company by 804,300 shares on Sept. 8, thus making its shareholding proportion account for 5 percent of the total share capital. Beijing Lanfeng Assets Management Co., Ltd. and Yang Hua bought the shares of Yunnan Jinggu Forestry Co., Ltd. (600265.SH) through secondary market acquisition to the 5 percent limit.
○ Ellassay Fashion to purchase German high-end lady's dress brand
------
Shenzhen Ellassay Fashion Co., Ltd. (603808.SH) plans to purchase 100 percent equity of Dongming International Investment (Hong Kong) Co., Ltd. with 11.18 million euros. Dongming International Investment owns the ownership and right to use brand mark "Laurel" in mainland China. Positioned as international high-end lady's dress, the brand was established in Munich, Germany in 1978 and was previously a brand under the ESCADA, one of the three famous luxury brands in Germany. The brand covers more than 30 countries worldwide and possesses over 1,000 sales stores all over the world.
○Visual China to buy shares of Sima Yan Culture at RMB300 mln, involving copybood for calligraphy
------
A wholly-owned subsidiary of Visual China Group Co., Ltd. (000681.SZ) intends to buy 49 percent equities of Hubei Sima Yan Culture and Technology Co., Ltd. at 300 million yuan. Founded by calligrapher Sima Yan and his family, Sima Yan Culture and Technology is engaged in the privately-operated copybook for calligraphy with the greatest circulation and the most powerful influence. The subject company promises the net profit after extraordinary items will be 40 million yuan, 50 million yuan, 60 million yuan and 60 million yuan from 2015 to 2018, respectively. The P/E ratio for purchase is 11.7 times.
○ Ningbo Donly sees shareholding increases
------
Song Jilong, the actual controller of Ningbo Donly Co., Ltd. (002164.SZ), increased the shareholding in the company with a total of 5.09 million shares at an average price of 6.15 yuan on Sep. 8, accounting for 1.14 percent of the total stock capital. Kang Baohua, chairman of Shenyang Brilliant Elevator Co., Ltd. (002689.SZ), will increase in shareholdings in the company when it is appropriate in the following six months, with a proposed price of no more than 10 yuan and a total amount of no more than 20 million yuan. The number of shares to be bought will be no more than 2 percent of the total shares. Shihezi Zhongtian Equity Investment Enterprise (Limited Partnership), a shareholder of Sinoma International Engineering Co., Ltd. (600970.SH), increased the shareholding in the company with a total of 4.57 million shares on Sep. 7 to 8.
[Trading Trends]
○ Five institutes buy Tianbao Heavy Industry
------
The trading volume ranking list on Sept. 8 shows that five institutes bought Chengdu Tianbao Heavy Industry Co., Ltd. (300362.SZ) with a total of 41.18 million yuan, accounting for 68.9 percent of its intraday turnover. One institute sold it with 7.03 million yuan.
Comment: Institutes estimate that the centrifuge, environmental equipment and engineering business of the company are expected to burst in the future. Its denotative expansion will also speed up. The performance for the whole year is expected to see high growth. According to the equity stimulus plan released recently, it has a high requirement on performance growth with a compound increase of 59.4 percent in the net profit after extraordinary items in the following three years.
> New energy vehicles output speed up, lithium battery performance to maintain high growth
> More military-civil integration policies to launched, NEA to release planning on nuclear power
> Huang Yongfei buys shares of But'one Information, Ellassay Fashion to purchase German high-end lady's dress brand
> Visual China to invest in Sima Yan Culture to develop copybood for calligraphy, Ningbo Donly sees shareholding increases
[SSN Focus]
○ New energy vehicles output speed up, lithium battery performance to maintain high growth
------
According to the statistics of the Ministry of Industry and Information Technology (MIIT), the output of new energy vehicles in China reached 24,500 units in August, representing a growth of nearly 400 percent year on year, the highest year-on-year growth since February. A total of 123,500 new energy vehicles have been produced in the first eight months, increases 300 percent year on year. Insiders of BYD Company Limited (01211.HK; 002594.SZ) indicated that its plug-in hybrid vehicle "Qin" has been produced in a full capacity and still cannot meet the orders.
Comment: Based on the current momentum, the annual sales target of 200,000 new energy vehicles, which used to be remote, is likely to be achieved in advance. With the implementation of detailed subsidies and the gradual improvement of charging facilities as well as the implementation of the "strictest regulations on oil consumption", the new energy vehicle market will continue to expand. As a core component, the lithium battery industry will see high growth in performance. It is estimated that the dynamic lithium battery demand will reach about 12.5GWh this year while the actual capacity can only meet 40 percent. Jiangsu Dongyuan Electrical Group Co., Ltd. (002074.SZ) and Do-Fluoride Chemicals Co., Ltd. (002407.SZ) are expected to make more investments in lithium battery. Sichuan Tianqi Lithium Industries, Inc. (002466.SZ) owns advantages in lithium ore resources and is expected to maintain the high performance growth in the first half.
[SSN Selection]
○ The Ministry of Finance issued a document on Sept. 8 to implement more powerful fiscal policies and pool funds to accelerate the implementation of key construction projects.
○ Bloomberg reported that the first batch of investment projects with 1.2 trillion yuan special construction bonds have been determined, including the urban rail transportation, the railway construction in central and western China and underground pipelines.
○ The central bank conducted the reverse repo with 150 billion yuan on Sept. 8. Institutes believe it is likely to cut the reserve requirement ratio in short term.
○ Miao Wei, Minister of the Ministry of Industry and Information Technology (MIIT), indicated that it will strengthen the top design for intelligent manufacturing and prepare special plans.
○ The merger and reorganization of Shenzhen Fountain Corporation (000005.SZ) and Yunnan Chihong Zinc ＆ Germanium Co., Ltd. (600497.SH) was conditionally approved. The merger and reorganization of Zhejiang New Jialian Electronics Co., Ltd. (002188.SZ) was passed unconditionally.
[Industry Information]
○ Opening of military industry accelerated, more military-civil integration policies to launched
------
The State Administration of Science, Technology and Industry for National Defense (SASTIND) and the Chinese PLA General Armament Department jointly releases the new permit list on scientific research and production of weaponry on Sept. 8, cutting about two-thirds permits compared with the 2005 version. It is also learnt by SSN that under the idea of "general security" and "general defense", more policy dividend are expected to be launched later.
Comment: The largely-narrowed scope of permit management helps to promote the opening of the military industry, accelerate the participation of advantageous privately-owned enterprises in the fields of weaponry research, production and maintenance. Privately-owned enterprises involved in the military industry might embrace incremental market. As to listed companies, the products of Anhui Tongzhi Electrical Control Technology Company Limited, a subsidiary of Jiangsu Yinhe Electronics Co., Ltd. (002519.SZ), is mainly applied in military areas including tank and self-propelled gun; Shifang Minri Astronavigation Industry Co., Ltd., a company planned to be purchased by Xinjiang Machinery Research Institute Co., Ltd. (300159.SZ), produces aircraft components including airplane, guided missile, rocket, etc. The purchase scheme has been unconditionally approved by the acquisition and reorganization commission of China Securities Regulatory Commission.
○ Planning on nuclear power to unveiled, newly-commenced projects to bring orders
------
Li Zhi, chief economist of the National Energy Administration (NEA), discloses on Sept. 8 that the NEA is formulating the energy industry's implementation scheme for "Made in China 2025" to make national strategy more specific in the industry. Series of planning or special action plans concerning nuclear power, energy storage and energy material will be released one after another. It is also learnt by SSN that the "Hualong No.1" Fangchenggang Phase II Project under China General Nuclear Power Corporation (CGNPC) now enters the last stage for project approval and security review. The project might be started in Oct. or Nov.
Comment: Under the promotion of the restart of nuclear power and the "going out" strategy, relevant companies involved in the industrial chain might expect substantial orders. The launch of following planning will also create sound policy environment. As to listed companies, Zhefu Holding Group Co., Ltd. (002266.SZ) provides Hualong No.1 nuclear technology with control rod drive products; Shanghai Electric Group Company Limited (601727.SH; 02727.HK) supplies Hualong No.1 nuclear technology with steam turbine generator unit.
[Announcement Interpretation]
○ Huang Yongfei buys shares of But'one Information to 5 pct limit
------
But'one Information Corporation, Xi'an (600455.SH) announced that from July 9 to Sept. 2, persons acting in concert including Huang Yongfei, Gu Ping and Huang Kaikai, together held 3.57 million shares in the company with an average price of 42.25 yuan per share, accounting for 5.71 percent of the total share capital. The total amount reached about 151 million yuan. These shareholders contributed their shareholding increase to that they are rose about the company's prospect. They hope to benefit from the appreciation of the shares and promise not to cut the shareholding in the following six months.
In addition, Tianjin Commercial Union Holdings Limited, the second largest shareholder of Tianjin Quanyechang (Group) Co., Ltd. (600821.SH), increased the shareholding in the company by 804,300 shares on Sept. 8, thus making its shareholding proportion account for 5 percent of the total share capital. Beijing Lanfeng Assets Management Co., Ltd. and Yang Hua bought the shares of Yunnan Jinggu Forestry Co., Ltd. (600265.SH) through secondary market acquisition to the 5 percent limit.
○ Ellassay Fashion to purchase German high-end lady's dress brand
------
Shenzhen Ellassay Fashion Co., Ltd. (603808.SH) plans to purchase 100 percent equity of Dongming International Investment (Hong Kong) Co., Ltd. with 11.18 million euros. Dongming International Investment owns the ownership and right to use brand mark "Laurel" in mainland China. Positioned as international high-end lady's dress, the brand was established in Munich, Germany in 1978 and was previously a brand under the ESCADA, one of the three famous luxury brands in Germany. The brand covers more than 30 countries worldwide and possesses over 1,000 sales stores all over the world.
○Visual China to buy shares of Sima Yan Culture at RMB300 mln, involving copybood for calligraphy
------
A wholly-owned subsidiary of Visual China Group Co., Ltd. (000681.SZ) intends to buy 49 percent equities of Hubei Sima Yan Culture and Technology Co., Ltd. at 300 million yuan. Founded by calligrapher Sima Yan and his family, Sima Yan Culture and Technology is engaged in the privately-operated copybook for calligraphy with the greatest circulation and the most powerful influence. The subject company promises the net profit after extraordinary items will be 40 million yuan, 50 million yuan, 60 million yuan and 60 million yuan from 2015 to 2018, respectively. The P/E ratio for purchase is 11.7 times.
○ Ningbo Donly sees shareholding increases
------
Song Jilong, the actual controller of Ningbo Donly Co., Ltd. (002164.SZ), increased the shareholding in the company with a total of 5.09 million shares at an average price of 6.15 yuan on Sep. 8, accounting for 1.14 percent of the total stock capital. Kang Baohua, chairman of Shenyang Brilliant Elevator Co., Ltd. (002689.SZ), will increase in shareholdings in the company when it is appropriate in the following six months, with a proposed price of no more than 10 yuan and a total amount of no more than 20 million yuan. The number of shares to be bought will be no more than 2 percent of the total shares. Shihezi Zhongtian Equity Investment Enterprise (Limited Partnership), a shareholder of Sinoma International Engineering Co., Ltd. (600970.SH), increased the shareholding in the company with a total of 4.57 million shares on Sep. 7 to 8.
[Trading Trends]
○ Five institutes buy Tianbao Heavy Industry
------
The trading volume ranking list on Sept. 8 shows that five institutes bought Chengdu Tianbao Heavy Industry Co., Ltd. (300362.SZ) with a total of 41.18 million yuan, accounting for 68.9 percent of its intraday turnover. One institute sold it with 7.03 million yuan.
Comment: Institutes estimate that the centrifuge, environmental equipment and engineering business of the company are expected to burst in the future. Its denotative expansion will also speed up. The performance for the whole year is expected to see high growth. According to the equity stimulus plan released recently, it has a high requirement on performance growth with a compound increase of 59.4 percent in the net profit after extraordinary items in the following three years.
Latest comments