[Today's Guide]
○New VR products frequently launched, industrial prosperity to come soon
○China positively plans national carbon market, anti-terrorism industry catches attentions
○Laobaixing to build all-channel drugs retail platform, Estun Automation to facilitate upgrading of robotics industry
○Aoyang Technology to add stakes in medical and health industry, Shunrong Sanqi Interactive Entertainment Network Technology proposes high share conversion
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[SSN Focus]
○New VR products frequently launched, industrial prosperity to come soon
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Baofeng Mojing, subordinate of Beijing Baofeng Technology Co., Ltd. (300431.SZ), pushed out two new VR (virtual reality) products on Nov. 18, Baofeng Mojing all-in-one machine "Mowang" and Baofeng Mojing 4, and announced that it will increase the number of China's VR users to 10 million in next one year. About tens of companies including China Telecom Corporation Ltd. (NYSE: CHA; 00728.HK) exhibited head-wearing VR displays in the China Hi-tech Fair held in Shenzhen recently. IT magnates, such as Sony Corporation (NYSE: SNE) and Facebook, Inc. (NASDAQ: FB), plan to release head mounted displays next year.
Comment: Along with a series of consumer-based VR products' issuance and popularization, VR products are likely to be very popular next year. Games are most possible to be the breakthrough point for the prosperity of VR industry, which can open a market of 100 billion yuan based on verisimilitude and operability of experience. Various related A shares soared by the daily limit on Nov. 19, such as Shenzhen Aisidi Co., Ltd. (002416.SZ) holding equities of Baofeng Mojing and Zhejiang Crystal-optech Co., Ltd. (002416.SZ) researching and developing virtual display. Taiya Shoes Co., Ltd. (002517.SZ) indicated on SZSE EasyIR that Shanghai Kingnet Technology Co., Ltd., which proposes to carry out backdoor listing based on Taiya Shoes, does not eliminate the possibility to invest R＆D of VR in the future.
[SSN Selection]
○According to the Embassy of the Republic of Poland, leaders' meeting of China and Poland to be held next week is likely to reach agreements that China will build high-speed railway or nuclear power projects for Poland.
○The People's Bank of China (PBOC) announced that it will cut its branches' interest rates of Standing Lending Facility from Nov. 20, showing that the interest rates will be cut to stabilize the market expectation.
○Recently, China Securities Regulatory Commission obviously accelerated the examination and approval for merger, acquisition and restructuring, shortened the period between acceptance and official hearings to over 20 days at the soonest from previous two or three months.
○The Export-Import Bank of China provides credit line of 500 billion yuan to China Railway Corporation to support its domestic and overseas infrastructure construction.
○China Food and Drug Administration issued a document to promote consistent appraisal of generic drugs, beneficial to clinical application, purchase and payment of leading medicine enterprises.
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[Industry Information]
○China positively plans national carbon market, pushing emission reduction
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Xie Zhenhua, special representative of China's climatic variation affairs, indicated on Nov. 19 that China will make every effort to initiate the carbon market nationwide in 2017. Additionally, China is positively considering the legislation of the control regulations on carbon emission permit trading. The conditions to establish a unified national carbon market are comparatively mature, after preparations are finished.
Comment: The United Nations climate change conference is to be held in Paris on Nov. 30. The conference is very likely to see agreement on carbon emission reduction, which will accelerate China's carbon emission market to open. Among the listed companies, Zhejiang Juhua Co., Ltd. (600160.SH) is engaged in fluor chemical industry and will benefit from production capacity decrease as a result of carbon emission reduction. It is the first to undertake carbon emissions permit trading in the industry. Shanghai Zhixin Electric Co., Ltd. (600517.SH) plans to develop its carbon asset management company into a national leading carbon trading service provider. CPI Yuanda Environmental-Protection (Group) Co., Ltd. (600292.SH) owns the biggest carbon dioxide collection devices in China at present and has made deployment on carbon futures exchange.
○China to resolutely crack down terrorist crimes, relevant industry to catch attention
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In a speech concerning the killing of Chinese citizen by Islamic State (IS) group, Chinese President Xi Jinping on Nov. 19 claimed that China opposes all forms of terrorism and firmly cracks down on any violent and terrorist crime that challenges the baseline of human civilization. Premier Li Keqiang said that the Chinese government strongly condemns the terrorist group IS for killing a Chinese hostage and attaches high importance on the safety of overseas Chinese.
Comment: Form the terrorist attacks in Paris to the killing of Chinese resident by the terrorist group, counter-terrorism is facing increasingly severe conditions. Domestic security equipment, special communication network, as well as other industries related to counter-terrorism will see a larger market. Besides, the acceleration in the joint counter-terrorism activities by international communities will promote the upgrading of equipment for Chinese navy. In terms of listed companies, Xiangtan Electric Manufacturing Co., Ltd. (600416.SH) proposes to raise 2.5 billion yuan through private placement to invest in the construction of the power-driven system for naval ships. Beijing Aerospace Changfeng Co., Ltd. (600855.SH) is principally engaged in security equipment. It has participated in security programs in Xinjiang and other regions.
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[Announcement Interpretation]
○Laobaixing raise RMB1.98 bln to build all-channel drugs retail platform
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Laobaixing Pharmacy Chain Joint Stock Company (603883.SH) plans to raise 1.98 billion yuan by issuing 49 million shares at a price of no less than 40.4 yuan per share through private placement to designated targets including related parties of pharmaceutical investment. The fundraising will be used for the project of establishing new stores and purchasing equities of some shareholders so as to increase the company's coverage in drugs retailing network, build an all-channel drugs retail platform and innovate the pharmaceutical e-commerce model.
○Estun Automation to raise RMB950 mln through private placement to facilitate upgrading of robotics industry
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NanJing Estun Automation Co., Ltd. (002747.SZ) plans to raise 950 million yuan through private placement by issuing no more than 25 million shares to invest in the R＆D and industrialization of robotics intelligent manufacturing system, the upgrading and modification project of robotics intelligent factory, national engineering technology center and etc. The move aims at making the company's R＆D and industrialization stronger in the intelligent manufacturing area so as to build a brand-new commercial mode and improve operation efficiency.
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○Aoyang Technology to raise RMB960 mln through private placement to invest in medical and health industry
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Jiangsu Aoyang Technology Corporation Limited (002172.SZ) plans to raise 960 million yuan through private placement by issuing 102 million shares at 9.44 yuan per share to invest in Gangcheng Rehabilitation Hospital and relevant chain projects, the Phase III construction project of Aoyang Hospital as well as to supplement working capital. Shen Xueru, actual controller of the company, and Zhangjiagang Jincheng Rongchuang Investment Management Co., Ltd., a shareholder of the company, will be involved in the private placement. The company, now principally engaged in chemical industry and chemical fiber, starts to develop capital operation since this year to move towards medical and health industry.
○Hejin Holding plans to raise RMB2 bln in constructing private hospital
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Shenyang Hejin Holding Co., Ltd. (000633.SZ) plans to raise 2 billion yuan through private placement. All of the raised fund will be invested in the construction and operation of the expansion PPP project of Sichuan Huapu Hospital. The company requires that individual subscribers and the persons acting in concert should not subscribe more than 40 million shares. It is expected that the top two shareholders of the company will remain unchanged after the issuance, meaning that the company will still have no controlling shareholder and actual controller.
○Huayi Brothers Media proposes to invest RMB1.9 bln in competitive game
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Huayi Brothers Media Corporation (300027.SZ) plans to invest 1.9 billion yuan in the capital increase of Beijing Hero Entertainment Technology Co., Ltd., accounting for 20 percent of the total share capital. The company indicates that this move aims at quickening its planning in competitive game, a segmented area with huge potential. Hero Entertainment has focused on the mobile competitive game area for years and the "Hero League Match" organized by the company is one of the most popular league matches of mobile competitive game in China.
Meanwhile, Huayi Brothers Media plans to acquire 70 percent equities of Zhejiang Dongyang Meila Media Co., Ltd. held by Feng Xiaogang and Lu Guoqiang. The films have been prepared or under development by Dongyang Meila Media include "Cell Phone 2" and "If You Are The One 3".
○Oil Hbp Science ＆ Technology contracts big order
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A wholly-owned subsidiary under China Oil Hbp Science ＆ Technology Co., Ltd. (002554.SZ) signs the contract with Pakistan's Nashpa oil field on the project concerning natural gas treatment and the recycling of liquefied petroleum gas with an contract amount totaling 148 million U.S. dollars (around 944 million yuan), accounting for 68 percent of its total revenue in 2014.
[Financial Reports Express]
○Shunrong Sanqi Interactive Entertainment Network Technology proposes high share conversion
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Wu Xushun, controlling shareholder of Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. (002555.SZ), proposes a 10-for-10 conversion of capital surplus into shares combined with 1 yuan dividend in the company's 2015 profit distribution proposal.
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