[Today's Guide]
> Multiple places deepen innovative reform, new economic impetus might fostered
> Anti-monopoly in automobile industry enters deepwater area, development room for after-sale market revealed
> Satellite navigation annual meeting to convened, focusing on Beidou
> Tibet Tourism bought through secondary market acquisition to 5 pct limit, Deluxe Family wins purchase contract on graphene mobile phones
[SSN Focus]
○Multiple places deepen innovative reform, new economic impetus might fostered
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The 2015 China Xi'an Silk Road International Tourism Expo will be held on Sept. 11 to fully explore international cooperation including inbound and outbound tourism. Xi'an has been selected as one of the eight areas piloting all-round innovative reform experiment in China. It will draft implementation scheme and submit it to the State Council for approval. The State-owned Assets Supervision and Administration Commission (SASAC) of Xinjiang Uygur Autonomous Region recently convened a meeting requiring accelerating implementation of various reforms and promoting cooperation between governmental public services and social capital
Comment: Being selected as the area piloting all-round innovative reform experiment means that these areas will pilot systematic, integrated and coordinated reform first to accelerate the transformation of economic development. Among the state-owned companies in Xi'an, Xi'an Tourism Co., Ltd. (000610.SZ) and Xi'an Qujiang Cultural Tourism Co., Ltd. (600706.SH) are engaged in tourism business. Tande Co., Ltd. (600665.SH) is a leading real estate company in Xi'an. As the 60th anniversary of the founding of Xinjiang Uygur Autonomous Region draws near, Xinjiang will see more relevant supporting polices. Several companies under the SASAC of Xinjiang have suspended trading, while two companies with no trading suspension are Xinjiang Urban Construction (Group) Co., Ltd. (600545.SH), engaged in infrastructure business, and Xinjiang Dushanzi Tianli High ＆ New Tech Co., Ltd., P.R.C. (600339.SH), involved in petrochemical engineering.
[SSN Selection]
○Chinese Premier Li Keqiang emphasizes international cooperation in productivity and expresses willingness to give play to China's advantages in equipment manufacturing during his address at the opening ceremony of the Davos Forum held on Sept. 10.
○The General Office of the State Council rolls out circular on promoting reform on standardized work and the "going out" of key areas including railway, electricity, nuclear power, etc.
○The CPI in Aug. surges by 2 percent year on year, recording a new high in a year. Institutions believe that this does not squeeze room of monetary policy.
○The RMB offshore exchange rate surges sharply for over 1 percent on Sept.10 afternoon. It will retrain the expectation on RMB devaluation in overseas market and intensify investors' confidence.
○The Ministry of Industry and Information Technology (MIIT) is now formulating the thirteenth five-year plan for big dada industry to promote integration of cloud computing, industry Internet, 3D-priting and etc.
[Industry Information]
○Anti-monopoly in automobile industry enters deepwater area, development room for after-sale market revealed
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As reported by www.cnr.cn, the National Development and Reform Commission (NDRC) of Guangdong province on Sept. 10 tickets Dongfeng Nissan Passenger Vehicle Company for 123.3 million yuan due to that it controls the selling price of finished automobile through vertical monopoly. In addition, the formulation of Guidance on Anti-Monopoly in Automobile Industry (Draft) might be completed before year end. The interviewed expert discloses that along with implementation of anti-monopoly in automobile industry, law enforcement against monopoly in after-sale market will be strengthened.
Comment: The previous anti-monopoly in automobile industry was specific to such luxury brands as Audi and Mercedes-Benz, while the ticket Dongfeng Nissan received is a precedent in economy sedan brand, making the anti-monopoly in the industry deepened. Due to the asymmetric information and various monopolies, the automotive aftermarket will see vaster development. Guangdong Delian Group Co., Ltd. (002666.SZ), which is an important provider of automotive fine chemicals in China, plans to establish 110 2S stores. Hubei Huitian New Materials Co., Ltd. (300041.SZ), a manufacturer of rubbers for automobile maintenance and automobile maintenance materials, has more than 600 initial dealers nationwide and entered the automotive aftermarket last year.
○Satellite navigation annual meeting to convened, focusing on Beidou
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GNSS and LBS Association of China (GLAC) releases White Paper for Development of China Satellite Navigation and Location-based Services Industry on Sept. 10 and announces that the Fourth Annual Meeting of China Satellite Navigation and Location-based Services and Exhibition is going to be held in Beijing from Sept. 23 to 25. The theme of the annual meeting will lie in "Beidou shines the world and brightens Chinese dream". Miao Qianjun, the secretary general of the GLAC introduced that the meeting will award Beidou prize and satellite navigation technology prize and will hold a academician forum with theme of "Beidou: location connected with the world".
Comment: Beidou has highlighted the annual meeting in terms of its theme and contents. With two new-generation Beidou navigation satellites launched in July, Beidou Navigation Satellite System is speeding up its coverage all over the world. Institutes believe that the market size of Beidou system will exceed 200 billion yuan by 2020. Beijing UniStrong Science ＆ Technology Co., Ltd. (002383.SZ) proposes to raise 650 million yuan through private placement for its principal business in Beidou products. Hwa Create Co., Ltd. (300045.SZ) recently announced that it had developed new products of Beidou chips with proprietary intellectual property rights.
[Announcement Interpretation]
○Tibet Tourism bought by Hu brothers through secondary market acquisition to 5 pct limit once again
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Tibet Tourism Co., Ltd. (600749.SH) announced Hu Bo and Hu Biao bought 777,000 shares in the company during Sept. 8 and 9, accounting for 0.41 percent of the total share capital. The two brothers have held more than 10 percent of the total share capital by now. They contributed the shareholding increase to that they were rosy about the company's development prospect and were open to increase the shareholding in next 12 months.
○Deluxe Family wins purchase contract on graphene mobile phones
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Deluxe Family Co., Ltd. (600503.SH) plans to obtain a purchase contract on 20,000 sets of secure graphene mobile phones by issuing shares to its wholly-owned subsidiary, Chongqing Graphene Technology Co., Ltd. through private placement. The mobile phones are mainly orientated to high-level customers in the financial and commercial business and the government. The mobile phone will be delivered at the year end and see a sales volume of 38 million yuan. The deal signifies that graphene electronics conform to the safety for hardware encryption of the Grade Protection 4 Standard of the National Bureau of Secrecy and will be officially introduced to the mobile terminal market.
Comment: If graphene products can achieve breakthrough in the large-scale commercial application, there will a wave of reform in new materials.
○Bestway Marine Engineering Design to merge Jinhaiyun with RMB1.3 bln to develop business in military industry
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Shanghai Bestway Marine Engineering Design Co., Ltd. (300008.SZ) proposes to buy 100 percent equities of Taizhou Jinhaiyun Marine Equipment Co., Ltd. through share issuance and cash payment. The deal is valued at 1,355 million yuan with 1,102 million yuan supporting funds. Jinhaiyun Marine Equipment is a high-tech military enterprise engaged in marine life-saving equipment and special equipment. Its clients are the military and the public sector. The counterparty promises that the total net profit of Jinhaiyun Marine Equipment from 2015 to 2017 will be no less than 287 million yuan.
○Yongan Phar. to repurchase with RMB30 mln
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Qianjiang Yongan Pharmaceutical Co., Ltd. (002365.SZ) proposes to repurchase no less than 1.50 million shares with no more than 30 million yuan at no more than 20 yuan per share, accounting for 0.80 percent of its total share capital. The most recently stock price of the company closed at 13.34 yuan per share. The company recently has developed into the health care products industry. The company has a total share capital of 187 million yuan and is valued at no more than 2.5 billion yuan.
○MLS to invest RMB180 mln in Kaistar Lighting to expand industrial chain
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MLS Co., Ltd. (002745.SZ) plans to invest 180 million yuan to acquire 10.91 percent equities of Kaistar Lighting (Xiamen) Co., Ltd. Kaistar Lighting is a core platform in the 10-billion-yuan LED industrial chain created by China Electronics Corporation (CEC). Its business covers the entire LED industrial chain ranging from epitaxial wafer to chips and from encapsulation module to illumination application. The company enjoys advantages in quick response and low cost in the industrial chain.
[Trading Trends]
○Three institutes buy New Jialian Electronics
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The trading volume ranking list on Sept. 10 shows that three institutes buy Zhejiang New Jialian Electronics Co., Ltd. (002188.SZ) with a total of 54.17 million yuan, accounting for 10.6 percent of its intraday turnover. No institutional seats sell it.
Comment: Recently, the China Securities Regulatory Commission (CSRC) gave green light to the company's acquisition of Bus-Online Science and Technology Co., Ltd., a company engaged in the operation of media advertisement in bus mobile television and the marketing of mobile Internet. The net profit of Bus-Online reached 64.37 million yuan last year, which is expected to remarkably improve the listed companies' performance.
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