[Today's Guide]
> Zhangjiang Hi-tech and Shibei Hi-tech to suspend trading, state-owned assets reform in district and county to speed up
> Charging piles to adopted in project package maintaining growth, demand with RMB100 bln to burst out
> Authoritative media focuses on supporting Xinjiang, new policy benefits highly expected
> Jonjee Hi-Tech again bought by Qianhai Life Insurance to 5 pct limit, Fenghua Advanced Tech. to acquire Viking Tech
[SSN Focus]
○ Zhangjiang Hi-tech and Shibei Hi-tech to suspend trading, state-owned assets reform in district and county to speed up
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Shanghai Zhangjiang Hi-tech Park Development Co., Ltd. (600895.SH) announced trading suspension on Sept. 22 evening as the State-owned Assets Supervision and Administration Commission of Shanghai Pudong New Area People's Government mulls and studies significant events about it. Shanghai Shibei Hi-tech Co., Ltd. (600604.SH) under the State-owned Assets Supervision and Administration Commission of Zhabei District People's Government also announced trading suspension for mulling private placement.
Comment: Since the introduction of the top design on the state-owned enterprises (SOEs) reform, Shanghai, as a key city with state-owned assets, actively conducts consolidation on SOEs resources through the state-owned assets flow platform at the municipal level. The state-owned assets reform at the district and county levels is also under steady progress, which has caught high attention from the capital market. Shanghai Pudong New Area has released the "18 rules" on state-owned assets and SOEs reform. Shanghai Waigaoqiao (Group) Co., Ltd., Shanghai Jinqiao (Group) Co., Ltd., Shanghai Pudong Development (Group) Co., Ltd. and Shanghai Harbour City Development (Group) Co., Ltd. are pioneers in reform. Zhabei District and Jing'an District are mulling consolidation, which will also promote the state-owned assets consolidation. Shanghai Pudong Road ＆ Bridge Construction Co., Ltd. (600284.SH) is the only listing platform of Pudong Development (Group), whose net assets are ten times of that of the company. Shang Gong Group Co., Ltd. (600843.SH) has successful experiences in cross-border merger and consolidation and institutes are rosy about its reform prospectus. The performance of Shanghai Kai Kai Industry Company Limited (600272.SH) under the State-owned Assets Supervision and Administration Commission of Jing'an District People's Government has been unsatisfactory for a long time. It market value is less than 3 billion yuan.
Top
[SSN Selection]
○ Chinese President Xi Jinping indicated in an interview woth an overseas media that the market has already entered into a stage of self-correction and self-adjustment with developing the capital market as one of the main goals of the reform.
○ The National Development and Reform Commission issued a document, stating that overall stable trend of the economy will not change in the second half year and the main expected targets can be achieved for the economic development of the whole year.
○ The Ministry of Industry and Information Technology held a symposium on compiling the 13th Five-year Plan for the pharmaceutical industry, requiring to carry out the work on the Made in China 2025.
○ Responsible persons of two ministries interpreted the promotion scheme on integration of three networks, indicating that it is basically eligible to enhance the integration of three networks within China.
○ Shanghai SMI Holding Co., Ltd. (600649.SH) has been approved at the general meeting to absorb and merge with B shares of Shanghai Young Sun Investment Co., Ltd. (900935.SH) and will resume trading on Sep. 23. B shares of Jiangsu Future Land Co., Ltd. (900950.SH) have been approved by the China Securities Regulatory Commission to convert to A shares.
[Industry Information]
○ Charging piles to adopted in project package maintaining growth, demand with RMB100 bln to burst out
------
SSN learnt that the "charging infrastructure in urban areas" is likely to be adopted in the four key project packages by the National Development and Reform Commission (NDRC), which can maintain economic growth and adjust the economic structure. The investment projects and production criteria of newly-built pure electric vehicle enterprises will be loosened. At the same time, the Ministry of Industry and Information Technology (MIIT) announced on Sept. 22 that three national standards, including the Connecting Device for Conductive Charging for Electric Vehicles, have passed the deliberation and review.
Comment: The expansion from the pure infrastructure investment into such emerging industries as charging piles shows that China is taking active measures in maintaining economic growth. The introduction of the national standards on charging will eliminate the worries of consumers for new energy vehicles on having difficulties in charging, which will break the bottleneck in the development of the industry. Institutes estimate that the number of charging stations and charging piles in China will reach 12,000 and 4.5 million in 2020 and the market size will reach over 100 million yuan. In terms of listed companies, Zhongyeda Electric Co., Ltd. (002441.SZ) proposes to raise 1 billion yuan by issuing shares through private placement to invest in the construction of charging stations for electric passenger cars. Qingdao TGOOD Electric Co., Ltd. (300001.SZ) has established cooperation relationship with BAIC Motor Corporation Ltd., Zhengzhou Yutong Group Co., Ltd. and other electric vehicle enterprises. Zhejiang Wanma Co., Ltd. (002276.SZ) has been inspected by tens of institutes last month. Its construction of charging network and time-sharing lease of its electric vehicles catch much attention.
Top
○ Authoritative media focuses on supporting Xinjiang, new policy benefits highly expected
------
Xinhua News Agency released the summary of counterpart supporting work on Xinjiang Uygur Autonomous Region as well as relevant articles on the 60th anniversary of the establishment of Xinjiang on Sept. 22. It is reported that the celebration of the 60th anniversary of Xinjiang will kick off in late September. All walks of life in Xinjiang have made arrangements on the celebration. As the core area in the Silk Road Economic Belt, all ports along the belt in the region are actively preparing for the application for the third batch of free trade zones. Various interconnection infrastructure projects, including roads, railway, energy and information, are speeding up in advancing.
Comment: As Oct. 1, the anniversary of the establishment of the region, approaches, Xinjiang will continue to catch more attention. More policies supporting the development of Xinjiang are expected to speed up in releasing. Xinjiang Urban Construction (Group) Co., Ltd. (600545.SH), China West Construction Group Co., Ltd. (002302.SZ), Xinjiang Qingsong Building Materials And Chemicals (Group) Co., Ltd. (600425.SH) and other local construction and building materials companies are expected to benefit first.
Top
[Announcement Interpretation]
○ Jonjee Hi-Tech again bought by Qianhai Life Insurance to 5 pct limit
------
Jonjee Hi-Tech Industrial and Commercial Holding Co., Ltd. (600872.SH) announced that as of Sept. 22, Qianhai Life Insurance Co., Ltd. increases the shareholding in the company to the 5 percent limit for a second time after one week. It now holds 15.11 percent shares of the company and becomes the biggest shareholder of the company. If the company completes fund-raising through private placement, Qianhai Life Insurance and its persons acting in concert will altogether hold as high as 38.38 percent shares of the company.
○ Fenghua Advanced Tech. to acquire Viking Tech to expand product sales
------
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. (000636.SZ) proposes to acquire 35 to 40 percent equities of Viking Tech Corporation in cash through public tender offering with about a total amount of 238 million to 272 million yuan, becoming its biggest shareholder. Viking Tech Corporation is a listed company in Taiwan with leading technologies in thin-film precision resistance and thin-film high frequency inductance. Its products have been applied in advanced automotive electronics. Its net profit in 2014 was 29.00 million yuan.
○ Conba Phar. invests in Xfunsun Comm. Tech. to develop Internet-base medical industry
------
Zhejiang Conba Pharmaceutical Co., Ltd. (600572.SH) proposes to invest 26.00 million yuan in Shanghai Xfunsun Communications Technology Co., Ltd., accounting for 20 percent of the registered capital of Xfunsun Communications Technology after the investment. Xfunsun Communications Technology has five business modes, including home health management integrated with medical treatment, health preserving and retirement pension, remote medical monitoring, remote consultation, trusted management with partner hospital (including partner hospital in retirement communities ) and health management and intelligent pension.
○ Dingli Tech. Development ＆ Sunwoda Electronic see shareholding increase
------
Dingli Holding Group, the substantial shareholder of Shanghai Dingli Technology Development (Group) Co., Ltd. (600614.SH) increased the shareholding in the company by 790,000 shares. According to the shareholding increase plan, its substantial shareholder would increase the shareholding in the company by no less than 150 million yuan in the six months starting from July 14. Wang Mingwang, the actual controller of Sunwoda Electronic Co., Ltd. (300207.SZ) increased the shareholding in the company by 3.90 million shares from Sept. 21 to 22. According to the shareholding increase plan, its actual controller would increase the shareholding in the company by no less than 230 million yuan in the six months starting from July 20.
Top
[Financial Reports Express]
○ Hengtong Optic-Electric forecasts performance growth from Q1-Q3
------
Hengtong Optic-Electric Co., Ltd. (600487.SH) forecasts its net profit in the first three quarters to increase by 50 to 70 percent year on year, mainly due to its rising operating revenue and the consolidation of the financial statement of Heilongjiang GAMMA Telecom Engineering Co., Ltd.
[Trading Trends]
○ Multiple securities-related stocks net bought by massive capital
------
The securities sector led the market with a rise of about 4 percent on Sept. 22. The trading volume ranking list shows that for Shanxi Securities Co., Ltd. (002500.SZ) and Western Securities Co., Ltd. (002673.SZ) that surged daily 10 percent limit, the turnover of their top five bidding seats are much higher than that of their top five offering seats. Shanxi Securities once was bought by one institution. According to a research report of Huatai Securities Co., Ltd. (601688.SH), the current valuation of large securities companies is about 8 to 9 times, a low level in history. Some securities companies even saw their stock prices falling below their offering prices. Driven by reform and innovation, the industry will welcome few behemoth comprehensive and modern investment banks and a batch of quality investment banks focusing in special fields.
> Zhangjiang Hi-tech and Shibei Hi-tech to suspend trading, state-owned assets reform in district and county to speed up
> Charging piles to adopted in project package maintaining growth, demand with RMB100 bln to burst out
> Authoritative media focuses on supporting Xinjiang, new policy benefits highly expected
> Jonjee Hi-Tech again bought by Qianhai Life Insurance to 5 pct limit, Fenghua Advanced Tech. to acquire Viking Tech
[SSN Focus]
○ Zhangjiang Hi-tech and Shibei Hi-tech to suspend trading, state-owned assets reform in district and county to speed up
------
Shanghai Zhangjiang Hi-tech Park Development Co., Ltd. (600895.SH) announced trading suspension on Sept. 22 evening as the State-owned Assets Supervision and Administration Commission of Shanghai Pudong New Area People's Government mulls and studies significant events about it. Shanghai Shibei Hi-tech Co., Ltd. (600604.SH) under the State-owned Assets Supervision and Administration Commission of Zhabei District People's Government also announced trading suspension for mulling private placement.
Comment: Since the introduction of the top design on the state-owned enterprises (SOEs) reform, Shanghai, as a key city with state-owned assets, actively conducts consolidation on SOEs resources through the state-owned assets flow platform at the municipal level. The state-owned assets reform at the district and county levels is also under steady progress, which has caught high attention from the capital market. Shanghai Pudong New Area has released the "18 rules" on state-owned assets and SOEs reform. Shanghai Waigaoqiao (Group) Co., Ltd., Shanghai Jinqiao (Group) Co., Ltd., Shanghai Pudong Development (Group) Co., Ltd. and Shanghai Harbour City Development (Group) Co., Ltd. are pioneers in reform. Zhabei District and Jing'an District are mulling consolidation, which will also promote the state-owned assets consolidation. Shanghai Pudong Road ＆ Bridge Construction Co., Ltd. (600284.SH) is the only listing platform of Pudong Development (Group), whose net assets are ten times of that of the company. Shang Gong Group Co., Ltd. (600843.SH) has successful experiences in cross-border merger and consolidation and institutes are rosy about its reform prospectus. The performance of Shanghai Kai Kai Industry Company Limited (600272.SH) under the State-owned Assets Supervision and Administration Commission of Jing'an District People's Government has been unsatisfactory for a long time. It market value is less than 3 billion yuan.
Top
[SSN Selection]
○ Chinese President Xi Jinping indicated in an interview woth an overseas media that the market has already entered into a stage of self-correction and self-adjustment with developing the capital market as one of the main goals of the reform.
○ The National Development and Reform Commission issued a document, stating that overall stable trend of the economy will not change in the second half year and the main expected targets can be achieved for the economic development of the whole year.
○ The Ministry of Industry and Information Technology held a symposium on compiling the 13th Five-year Plan for the pharmaceutical industry, requiring to carry out the work on the Made in China 2025.
○ Responsible persons of two ministries interpreted the promotion scheme on integration of three networks, indicating that it is basically eligible to enhance the integration of three networks within China.
○ Shanghai SMI Holding Co., Ltd. (600649.SH) has been approved at the general meeting to absorb and merge with B shares of Shanghai Young Sun Investment Co., Ltd. (900935.SH) and will resume trading on Sep. 23. B shares of Jiangsu Future Land Co., Ltd. (900950.SH) have been approved by the China Securities Regulatory Commission to convert to A shares.
[Industry Information]
○ Charging piles to adopted in project package maintaining growth, demand with RMB100 bln to burst out
------
SSN learnt that the "charging infrastructure in urban areas" is likely to be adopted in the four key project packages by the National Development and Reform Commission (NDRC), which can maintain economic growth and adjust the economic structure. The investment projects and production criteria of newly-built pure electric vehicle enterprises will be loosened. At the same time, the Ministry of Industry and Information Technology (MIIT) announced on Sept. 22 that three national standards, including the Connecting Device for Conductive Charging for Electric Vehicles, have passed the deliberation and review.
Comment: The expansion from the pure infrastructure investment into such emerging industries as charging piles shows that China is taking active measures in maintaining economic growth. The introduction of the national standards on charging will eliminate the worries of consumers for new energy vehicles on having difficulties in charging, which will break the bottleneck in the development of the industry. Institutes estimate that the number of charging stations and charging piles in China will reach 12,000 and 4.5 million in 2020 and the market size will reach over 100 million yuan. In terms of listed companies, Zhongyeda Electric Co., Ltd. (002441.SZ) proposes to raise 1 billion yuan by issuing shares through private placement to invest in the construction of charging stations for electric passenger cars. Qingdao TGOOD Electric Co., Ltd. (300001.SZ) has established cooperation relationship with BAIC Motor Corporation Ltd., Zhengzhou Yutong Group Co., Ltd. and other electric vehicle enterprises. Zhejiang Wanma Co., Ltd. (002276.SZ) has been inspected by tens of institutes last month. Its construction of charging network and time-sharing lease of its electric vehicles catch much attention.
Top
○ Authoritative media focuses on supporting Xinjiang, new policy benefits highly expected
------
Xinhua News Agency released the summary of counterpart supporting work on Xinjiang Uygur Autonomous Region as well as relevant articles on the 60th anniversary of the establishment of Xinjiang on Sept. 22. It is reported that the celebration of the 60th anniversary of Xinjiang will kick off in late September. All walks of life in Xinjiang have made arrangements on the celebration. As the core area in the Silk Road Economic Belt, all ports along the belt in the region are actively preparing for the application for the third batch of free trade zones. Various interconnection infrastructure projects, including roads, railway, energy and information, are speeding up in advancing.
Comment: As Oct. 1, the anniversary of the establishment of the region, approaches, Xinjiang will continue to catch more attention. More policies supporting the development of Xinjiang are expected to speed up in releasing. Xinjiang Urban Construction (Group) Co., Ltd. (600545.SH), China West Construction Group Co., Ltd. (002302.SZ), Xinjiang Qingsong Building Materials And Chemicals (Group) Co., Ltd. (600425.SH) and other local construction and building materials companies are expected to benefit first.
Top
[Announcement Interpretation]
○ Jonjee Hi-Tech again bought by Qianhai Life Insurance to 5 pct limit
------
Jonjee Hi-Tech Industrial and Commercial Holding Co., Ltd. (600872.SH) announced that as of Sept. 22, Qianhai Life Insurance Co., Ltd. increases the shareholding in the company to the 5 percent limit for a second time after one week. It now holds 15.11 percent shares of the company and becomes the biggest shareholder of the company. If the company completes fund-raising through private placement, Qianhai Life Insurance and its persons acting in concert will altogether hold as high as 38.38 percent shares of the company.
○ Fenghua Advanced Tech. to acquire Viking Tech to expand product sales
------
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. (000636.SZ) proposes to acquire 35 to 40 percent equities of Viking Tech Corporation in cash through public tender offering with about a total amount of 238 million to 272 million yuan, becoming its biggest shareholder. Viking Tech Corporation is a listed company in Taiwan with leading technologies in thin-film precision resistance and thin-film high frequency inductance. Its products have been applied in advanced automotive electronics. Its net profit in 2014 was 29.00 million yuan.
○ Conba Phar. invests in Xfunsun Comm. Tech. to develop Internet-base medical industry
------
Zhejiang Conba Pharmaceutical Co., Ltd. (600572.SH) proposes to invest 26.00 million yuan in Shanghai Xfunsun Communications Technology Co., Ltd., accounting for 20 percent of the registered capital of Xfunsun Communications Technology after the investment. Xfunsun Communications Technology has five business modes, including home health management integrated with medical treatment, health preserving and retirement pension, remote medical monitoring, remote consultation, trusted management with partner hospital (including partner hospital in retirement communities ) and health management and intelligent pension.
○ Dingli Tech. Development ＆ Sunwoda Electronic see shareholding increase
------
Dingli Holding Group, the substantial shareholder of Shanghai Dingli Technology Development (Group) Co., Ltd. (600614.SH) increased the shareholding in the company by 790,000 shares. According to the shareholding increase plan, its substantial shareholder would increase the shareholding in the company by no less than 150 million yuan in the six months starting from July 14. Wang Mingwang, the actual controller of Sunwoda Electronic Co., Ltd. (300207.SZ) increased the shareholding in the company by 3.90 million shares from Sept. 21 to 22. According to the shareholding increase plan, its actual controller would increase the shareholding in the company by no less than 230 million yuan in the six months starting from July 20.
Top
[Financial Reports Express]
○ Hengtong Optic-Electric forecasts performance growth from Q1-Q3
------
Hengtong Optic-Electric Co., Ltd. (600487.SH) forecasts its net profit in the first three quarters to increase by 50 to 70 percent year on year, mainly due to its rising operating revenue and the consolidation of the financial statement of Heilongjiang GAMMA Telecom Engineering Co., Ltd.
[Trading Trends]
○ Multiple securities-related stocks net bought by massive capital
------
The securities sector led the market with a rise of about 4 percent on Sept. 22. The trading volume ranking list shows that for Shanxi Securities Co., Ltd. (002500.SZ) and Western Securities Co., Ltd. (002673.SZ) that surged daily 10 percent limit, the turnover of their top five bidding seats are much higher than that of their top five offering seats. Shanxi Securities once was bought by one institution. According to a research report of Huatai Securities Co., Ltd. (601688.SH), the current valuation of large securities companies is about 8 to 9 times, a low level in history. Some securities companies even saw their stock prices falling below their offering prices. Driven by reform and innovation, the industry will welcome few behemoth comprehensive and modern investment banks and a batch of quality investment banks focusing in special fields.
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