[Today's Guide]
>Stocks related to "second child" concept favored by institutions, pregnancy, infant and children industry to see promising development
>NEA raises target of PV power station installation, industry to see more investment...
>Tourism industry remains rapid growth, Internet-based tourism to see millions of profits
>Zhengye Tech. fully controls Jiyin Tech., Hepalink Phar. to resume trading after overseas merger and acquisition
[SSN Focus]
○Stocks related to "second child" concept favored by institutions, pregnancy, infant and children industry to see promising development
------
The trading volume ranking list on Sept. 28 shows that Vtron technologies Ltd. (002308.SZ) is bought by two institutional seats with 47.37 million yuan. The company heavily invests in the acquisition of preschool education assets this year; Shanxi C＆Y Pharmaceutical Group Co., Ltd. (300254.SZ) is also heavily bought by institutional seats. The company is engaged in health care products for pregnant women and its subsidiary is involved in the detection of pregnancy environment and the intervening health care for women of childbearing age. Multiple stocks related to the concept of "second child" soar to the daily limit of 10 percent on Sept. 28, such as Ningbo David Medical Device Co., Ltd. (300314.SZ) which produces infant care equipment, Zhejiang Satellite Petrochemical Co., Ltd. (002648.SZ) which produces acrylic acid (upstream material for paper diapers), Beingmate Baby ＆ Child Food Co., Ltd. (002570.SZ) and Xinjiang Western Animal Husbandry Co., Ltd. (300106.SZ) that produce infant formula milk powder, Shandong Shanda Wit Science and Technology Co., Ltd. (000915.SZ) and Hainan Honz Pharmaceutical Co., Ltd. (300086.SZ) that produce children's medicine, etc.
Comment: Pregnancy, infant and children industry has highlighted China's consumption upgrading. The market size of high-end infant milk powder, paper diaper, etc. rises rapidly by 30 percent in recent years, and sales channels also become more and more professional and branding day by day. Since the policy "allowing couples to have a second child if one of the parents is an only child" was launched in 2014, the national birth rate reversed the declining trend in previous years. Institutional research reports are optimistic about the further adjustment of family planning policies in coming years. Listed companies involved in the industrial chain might achieve greater development under the joint promotion of policy and market.
[TOP]
[SSN Selection]
○Chinese President Xi Jinping indicated at the headquarters of the United Nations in New York on Sep. 27 that China will strive to lower the carbon intensity by 40 percent to 45 percent by 2020.
○Chinese Premier Li Keqiang met with vice chairman of European Commission on Sep. 28 and indicated that China will not change its determination in releasing benefits through reform and opening-up.
○The opening meeting on collaborative dialogue for Sino-US civil aviation was held on Sep. 28 with deep discussion on cooperation in civil satellite navigation field.
○China's manufacturing PMI in September will slightly decline by 0.1 month on month to 49.6 according to the forecasted mid-value of 29 institutions.
○Ningbo Port Company Limited (601018.SH) announced that its substantial shareholder has finished the integration with Zhoushan Port Co., Ltd. The company will plan and prepare other related major events.
[Industry Information]
○NEA raises target of PV power station installation, industry to see more investment
------
The National Energy Administration (NEA) announced on Sept. 28 that it will raise the construction of new PV power stations to 5.3GW in 2015, up by 30 percent based on original plan. Statistics show that the newly installed capacity of PV power generation reached 7.73GW in the first half of the year, presenting a year-on-year growth of 134 percent from 3.3GW. In addition, it is reported that the target of PV installation in the Thirteenth Five-year Plan is expected to hike from previous 100GW to 200GW.
Comment: Institutes predict that driven by the raised target on PV installed capacity and energy conservation and emission reduction, China's PV industry will continue to develop rapidly, and core components, including PV power station and inverter, will see opportunities to expand. In terms of companies, Jiangsu Linyang Electronics Co., Ltd. (601222.SH) is vigorously developing PV power station which has become an important engine of the company's profit growth. Its net profit posted a growth of 25 percent in the first half of this year. It announced on Sept. 28 evening that it will win a 250 million contract from the State Grid Corporation of China. Sungrow Power Supply Co., Ltd. (300274.SZ) whose main business is PV inverter is developing into the fields of energy storage and electrical vehicles. Its net profit increased by 73.9 percent in the first half year.
[TOP]
○Tourism industry remains rapid growth, Internet-based tourism to see millions of profits
------
According to the 2015 China's Tourism Development Report recently released by China Tourism Academy Wuhan Branch, the online tourism trading reached a scale of 307.79 billion yuan in 2014, rising by 38.9 percent from the previous year, and will continue to grow rapidly in the following years. The online tourism market will embrace a bright future. The report also points out that the number of Chinese mainland citizens traveling abroad in 2014 reached 110 million with a growth rate of 18.7 percent.
Comment: The chairman of the National Tourism Administration proposed that the "Internet plus tourism" strategy would bring three trillion profits in the following five years, which mainly originate from the construction of Internet software and hardware for tourism, online tourism trading and innovation in tourism products and models. Among listed companies, aoyou.com, a subsidiary of China CYTS Tours Holding Co., Ltd. (600138.SH), provides unique tourism products with an orientation in differential online tourism business. Caissa Tongsheng (Beijing) Investment Co., Ltd., an overseas travel operator, was approved by the China Securities Regulatory Commission （CSRC）to go back-door listing through E-food Group Co., Ltd. (000796.SZ).
[TOP]
[Announcement Interpretation]
○Zhengye Tech. fully controls Jiyin Tech. by issuing stocks at 50 pct premium through private placement to expand industrial chain
------
Guangdong Zhengye Technology Co., Ltd. (300410.SZ) plans to purchase 100 percent equity of Shenzhen Jiyin Technology Co., Ltd. through issuing stocks and cash with a consideration of 530 million yuan. It issues stocks at 55.1 yuan per share and intends to raise 320 million yuan of supporting funds through private placement with the first day of issuance as pricing benchmark. The company closed at 36.82 yuan per share before trading suspension. It proposes a 15-for-10 conversion of capital surplus into shares according to its interim report.
Jiyin Technology is a new hi-tech enterprise specialized in automated assembly of liquid crystal module and development of testing equipment. Its net profit is expected to reach 36 million yuan, 46.8 million yuan and 60.84 million yuan from 2015 to 2017 respectively.
[TOP]
○Hepalink Phar. to resume trading after overseas merger and acquisition and repurchase plan at RMB1 bln
------
Shenzhen Hepalink Pharmaceutical Co., Ltd. (002399.SZ) plans to purchase 100 percent equity of Cytovance Biologics, Inc. at 200 million U.S. dollars through its wholly-owned subsidiary Hepalink USA Inc. Cytovance Biologics is engaged in development and production of therapeutic protein drugs and antibody-based drugs, thus involved in biomacromolecule drugs field. Hepalink Phar. suspended trading from July 7. It postponed another domestic merger and acquisition, which was under progress as scheduled. During trading suspension, it put forward a repurchase scheme, proposing to repurchase its stocks with no more than 30.17 yuan per share at a total amount of 1 billion yuan at most. The company closed at 26.72 yuan per share before trading suspension.
○Lander Sports Development to invest in sports tourism with Huangshan gov.
------
Lander Sports Development Co., Ltd. (000558.SZ) conducts overall cooperation with the People's Government of Huangshan Municipality in three major fields including investment and construction of international outdoor sports base, development of sports brand competition and development of sports tourism in Huangshan. The international outdoor sports base will be built into a training base with Huangshan feature for multi-sports professional teams from the country and provinces and provide first-class sports tourism service.
○Xianfeng New Material and Baiyang Aquatic gain shareholding increase
------
Lu Xianfeng, actual controller of Ningbo Xianfeng New Material Co., Ltd. (300163.SZ), increases shareholding in the company by 3.66 million shares, accounting for 0.77 percent of its total share capital, at an average price of 8.63 yuan per share. Controlling shareholder and some senior management of Baiyang Aquatic Group, Inc. (002696.SZ) increase shareholding in the company by 2.40 million shares at an average price of 12.73 yuan per share on Sept. 28. It will further increase shareholding in the company by no more than 3.50 million shares according to its plan.
[Financial Reports Express]
○Sanju Environmental Protection ＆ New Materials forecasts net profit increase in first three quarters
------
Thanks to the rapid rising income from energy purification service, Beijing Sanju Environmental Protection ＆ New Materials Co., Ltd. (300072.SZ) forecasts a year-on-year net profit increase of 107-109 percent in the first three quarters.
Latest comments