[Today's Guide]
○ First Asia-Pacific precision medical platform to launch, gene sequencing to expand
○ Premier Li makes instructions on new energy vehicle industry, components development to catch more attention
○ Center Power Tech. to expand lithium battery through private placement, SZZT Electronics to invest in cloud computing through private placement
○ Restructuring of Anhui Truchum Advanced Materials and Lanfeng Bio-chemical approved, CSF accounts showed in shareholder-ranking lists of various listed companies
Top
[SSN Focus]
○ First Asia-Pacific precision medical platform to launch, gene sequencing to expand
------
Aliyun, Alibaba (BABA.NYSE)'s cloud computing subsidiary, jointly launched a project of building the first precision medicine APP cloud platform in China and the Asia-Pacific region with with Intel and BGI on Oct. 22. According to the memorandum of strategic cooperation, BGI will collect and integrate all sources to build a data center and analysis platform on genomics to promote the development of the precision medical industry, based on the BGI Online, a genomics data analysis platform launched this April. With the new platform, gene developer can employ integrated solutions with sequenator, local gene computing all-in-one machine and cloud service, which will fully optimize the efficiency of gene data analysis.
Comment: China is now preparing the plan on precision medical and may include it in the major science and technology projects in the 13th Five-Year Plan. Media previously reported that China would invest 60 billion yuan in precision medical by 2030. Analysts believe that the above-mentioned platform will promote the rapid growth of the precision medical industry. Gene sequencing, as the foundation for precision medical, will be widely applied and have a huge potential for growth. Among listed companies, Jilin Zixin Pharmaceutical Industrial Co., Ltd. (002118.SZ) officially launched the second generation of domestic-made gene sequenator and auxiliary reagent in August. Beijing Beilu Pharmaceutical Co., Ltd. (300016.SZ) holds 20 percent equities of Geneseeq Technology Inc., a company engaged in gene detection. Anhui Anke Biotechnology (Group) Co., Ltd. (300009.SZ) announced in July acquisition of 25 percent equities of AGCU ScienTech Inc., a leader gene detection for legal medical expert.
[SSN Selection]
○ The State Administration of Science, Technology and Industry for National Defense and Chinese PLA General Armament Department jointly held a propaganda meeting on Oct. 22 to promote the implementation of the permit for the scientific development and production of new weaponry and the in-depth development of military and civilian integration.
○ According to www.enorth.com.cn, Tianjin has been approved to be the eighth pilot city for cross-border e-commerce. A public service platform will be built a the end of 2015 or in the beginning of 2016.
○ Bloomberg's report that China is considering integrating the businesses of its three major airlines pushes their stock prices higher on Oct. 22.
○ The People's Bank of China (PBOC) again conducted reverse repro with 20 billion yuan. The market holds high possibility for further reserve requirement ratio (RRR) and interest rate cut in the fourth quarter.
○ SSN learnt that the China National Textile and Apparel Council (CNTAC) is formulating the 13th Five-year Plan on the development of textile industry, which will build and promote six intelligentized production lines.
Top
[Industry Information]
○ Premier Li makes instructions on new energy vehicle industry, components development to catch more attention
------
The "Energy-saving and New Energy Vehicles' Industrial Development Achievement Report Meeting ＆ Exhibition" hosted by the Ministry of Industry and Information Technology (MIIT) and other ministries and commissions was held on Oct. 22. According to the weibo of the www.gov.cn, Premier Li Keqiang made important instructions on the meeting and required making breakthroughs in core technology and key components targeted at the bottleneck and weakness in the industrial development.
Comment: The domestic new energy vehicle market continued to boom while the component basis is relatively weak. The Ministry of Science and Technology issued opinions for soliciting opinions at the beginning of the year, proposing to conduct chain supports to 12 modules in the new energy vehicle industry, the battery, engine and other upstream components industries in particular. There are increasing policies on the development of components to new energy vehicles. Among A-share companies, the substantial shareholder of Wanxiang Qianchao Co., Ltd. (000559.SZ) owns complete industrial chains covering battery, engines, electronic control and complete vehicles. Institutes are rosy about its prospects on assets injection. Ningbo Joyson Electronic Corp. (600699.SH) is a leader in the battery management system industry. Zhejiang Asia-pacific Mechanical ＆ Electronic Co., Ltd. (002284.SZ) expands into the wheel hub motor market through acquisition.
○ Rare earth prices recover thanks to output limitation
------
SSN learnt that the market prices of rare earth have been recovering rapidly since October. The prices of didymium oxide and various medium and heavy rare earth elements hiked 14.5 percent and over 10 percent. The price hike is caused by the production limitation to maintain the price announced by China Northern Rare Earth (Group) High-tech Co., Ltd. (600111.SH) on Oct. 12. Subsequently, five major rare earth groups, including Xiamen Tungsten Co., Ltd. (600549.SH) and China Minmetals Rare Earth Co., Ltd. (000831.SZ), announced output limitation to maintain prices.
Comment: Considering the rare earth market is at a low level in recent years, the price boosted by enterprises and the expectation on purchase and storage will further facilitate market recovery. Relevant manufacturers indicated that the output limitation beats the market expectation and rare earth industrial chain is expected to be improved. The third quarterly reports show that China Securities Finance Corporation Limited and Central Huijin Investment Ltd. totally hold 12.17 percent and 3.95 percent equities of Northern Rare Earth and China Minmetals Rare Earth.
[News Tracking]
○ Lithium carbonate market sees low inventory, lithium prices to continue hiking
------
Based on the research of the SSN, the raw materials inventory of lithium salt manufacturers in China is very low. As winter approaches, the output of extraction of lithium from brine, which accounts for a majority of the global supply, will reduce significantly. There are no new capacity of lithium carbonate released in China. As for the demand, a new round of power battery expansion is under way. At least 18 listed companies invested in lithium battery projects this year with an investment of over 50 billion yuan. The short supply may support the price hike to the following year. SSN continued following the price hike of lithium carbonate recently.
Top
[Announcement Interpretation]
○ Center Power Tech. to expand lithium battery project with RMB935 mln through private placement
------
Shenzhen Center Power Tech. Co., Ltd. (002733.SZ) proposes to raise 935 million yuan by issuing 70 million shares through private placement at no more than 13.36 yuan per share. The proceeds will be invested in lithium batteries new energy construction project with 1 billion watts of power per hour, research center of fuel cell project and internet cloud platform development project for energy. When reaching its designed capacity, the lithium project will realize an annual profit of 250 million yuan.
○ SZZT Electronics to raise RMB1.5 bln through private placement to improve cloud computing industrial chain
------
SZZT Electronics Co., Ltd. (002197.SZ) proposes a private placement of 110million shares at the minimum price of 15.11 yuan per share, the fundraising of 1,512 million yuan will be used to invest in Changsha city Cloudgoing data center project and SZZT Electronics financial information service industrial park, repay bank loans and fund its working capital. This private placement will contribute to the establishment of industrial ecosystem, and facilitate the synergetic development between financial electronic, internet finance and cloud computing business.
Top
○ Major assets restructuring of Anhui Truchum Advanced Materials and Lanfeng Bio-chemical approved
------
Anhui Truchum Advanced Materials And Technology Co.,Ltd.( 002171.SZ)'s acquisition of 100% equity in Dingli Technology Company Limited, Jiangsu Lanfeng Bio-chemical Co.,Ltd(002513.SZ)'s acquisition of 100% equity in Ark Pha.Ltd, Unilumin Group Co.,Ltd.(300232.SZ)'s acquisition of 100% equity in ROE Creative Display, Jinshan Development ＆ Construction Co.,Ltd.(600679.SH)'s acquisition of 100% equity in Jiangsu Huajiu Spoke Manufacture Co.,Ltd., Shanghai Lianming Machinery Co.,Ltd.(603006.SH)'s acquisition of 100% equity in Xian Pretty Cargo Service Co., Ltd have been approved by China Securities Regulatory Commission unconditionally. Venustech Group Inc.(002439.SZ)'s acquisition of equity in Anfanggaoke and Unimassystem has been approved conditionally.
○ Huayi Brothers proposes to hold Haohan Film ＆ TV, covering various stars
------
Huayi Brothers Media Corporation (300027.SZ) proposes to acquire 70 percent equities of targeted company, which are held by artist-shareholders or artist-brokers of Zhejiang Dongyang Haohan Film ＆ TV Co., Ltd., with 756 million yuan. Artist-shareholders include Li Chen, Feng Shaofeng, Angelababy, Zheng Kai, Du Chun, Chen He and etc. The targeted company is mainly engaged in investment, production and publication of film ＆ TV projects, and also development and operation of artist-derivative businesses. According to performance commitment, targeted company should reach a net profit after taxes of 90 million yuan in 2015, with annual net profit growth of 15 percent compared with a year earlier from 2016. Huayi Brothers Media gains a net profit growth of 50 percent year on year in the first three quarters.
○ Sanxin Medtec made overall arrangement for hemodialysis business
------
Jiangxi Sanxin Medtec Co., Ltd. (300453.SZ) proposes to invest 10 million yuan to build up Jiangxi Sanxin Medical Treatment and Health Industrial Investment Co., Ltd. to establish a health industrial investment platform for businesses, including chain-operational hemodialysis centers. Fresenius Medical Care AG ＆ Co KGaA (FMS.NYSE) and DaVta are currently the two largest chain institutions for hemodialysis services in the world, with the market values of 20 billion US dollars and 15 billion US dollars respectively, which is the second largest medical service sector after chain hospital group HCA Holdings, Inc. (HCA.NYSE) in the USA. Sanxin Medtec gains a net profit growth of 11 percent in the first three quarters.
[Financial Reports Express]
○ CSF accounts showed in shareholder-ranking lists of various listed companies
------
According to the third quarterly report, accounts of China Securities Finance Co., Ltd. (CSF) totally held 13.74 percent shares of North China Pharmaceutical Company Ltd. (600812.SH), becoming the 11th largest shareholder of the company; 13.52 percent shares of Shanghai Liangxin Electrical Co., Ltd. (002706.SZ), the ninth largest shareholder; 10.69 percent shares of China United Network Communications Limited (600050.SH), both the substantial shareholder and 12th largest shareholder; 9.29 percent shares of Hunan Friendship ＆ Apollo Commercial Co., Ltd. (002277.SZ), the eighth largest shareholder; 11.7 percent shares of Shenzhen Everwin Precision Technology Co., Ltd. (300115.SZ), the sixth largest shareholder. In addition, CSF accounts are still in shareholder-ranking lists of Shenzhen Prince New Materials Co., Ltd. (002735.SZ), Guanghui Energy Co., Ltd. (600256.SH), Goldcup Electric Apparatus Co., Ltd. (002533.SZ), Kweichow Moutai Co., Ltd. (600519.SH), Yang Quan Coal Industry (Group) Co., Ltd. (600348.SH) and etc.
Top
Latest comments