[Today's Guide]
○Military reform to substantially implement soon, network troop and aero-troop seem ready
○Forum on formulation of 13th 5-year plan for agricultural technology innovation convened, progress of informatization to speed up
○Longmaster Information ＆ Technology to control Sixth People's Hospital of Guiyang, Palm Landscape Architecture signs big order
○Zhongtai Chemical to optimize industrial chain, Shengyang Science and Technology proposes high share conversion and dividend
TOP
[SSN Focus]
○Military reform to substantially implement soon, network troop and aero-troop seem ready
------
Jiefangjun Bao and Jiefangjun Branch of the Xinhua News Agency frequently issued a series of reports in recent days, and pointed out that military reform will be substantially carried out soon. Based on key information in the comprehensive reports, this military reform will rebuild operational command system and restructure the troops with the most intensified strength. Modern wars transform towards the fields of network and aerospace from the traditional fields with rapid and major changes. New combat forces of Chinese troops, such as "network troop" and "aero-troop", seem ready to come out at our call.
Comments: Powerful nation must have strong arm, and strong arm must reform. China is now at a crucial stage of becoming powerful from just big, and military construction should realize a "corner overtaking" and "key overstepping", which must reform quickly. It is predicted that military reform scheme to be issued will inspire Chinese people and attract the global attention. Construction for new combat forces of Chinese troops, such as "network troop" and "aero-troop", will greatly enhance the industries of China's network security, aviation and Beidou navigation satellite system. Listed companies related to military qualification in the said industries will gain huge development space.
◆A Russia fighter crashed in the border of Turkey on Nov. 24. Headquarter of Turkish armed forces made a statement that the Turkish military shot down the said fighter. Up to the issuance, main European stock indexes generally declined.
[SSN Selection]
○Chinese President Xi Jinping made important instructions on hosting the Beijing Olympic Winter Games, with the principle of green, share, openness and honest for the Olympics.
○The National Equities Exchange and Quotations (NEEQ) solicits public opinions for multi-layer scheme of the New Third Board. Innovation layer will firstly carry out innovative pilot on financing and transaction systems.
○Site meeting for reform on national state-owned forest farms has been held on Nov. 24, and leaders of the State Forestry Administration indicated that preparation will be accelerated to formulate provincial reform scheme.
○Officer of the National Development and Reform Commission revealed in the World Robot Exhibition that various departments are researching on formulation of certification system for robot products and key components.
○HNA Tourism Group proposes to invest in tuniu.com with 500 million US dollars to acquire 24.1 percent equities of the company, becoming the largest shareholder.
TOP
[Industry Information]
○Forum on formulation of 13th 5-year plan for agricultural technology innovation convened, progress of informatization to speed up
------
SSN learns that the Ministry of Science and Technology (MOST) recently convened a forum on the formulation of the thirteenth five-year plan for agricultural technology innovation. The forum introduced the general progress of the MOST's technology system management reform as well as the reform on technology plan management in rural areas and agricultural industry. The forum believed that the formulation of the plan this time will further intensify unified planning of scientific research projects and platforms as well as the resource input in cultivating talents, and it will coordinate the relationship between national common problems and regional differential development.
Comment: Technology innovation, as an important driver behind agricultural modernization, is also an important tool in removing poverty. Under the great push of policies, segmented industries including e-commerce in rural areas and agricultural informatization will embrace rapid development. As to listed companies, the agricultural materials e-commerce platform www.16899.com under Jiangsu Huifeng Agrochemical Co., Ltd. (002496.SZ) develops large-scale sales promotion from Nov.22 to 24. Its trading volume during the period sets a new record to 13.47 million yuan. Nongrj.com, an e-commerce platform under Anhui Huilong Agricultural Means of Production Co., Ltd. (002556.SZ), has gone live; Shenzhen Batian Ecotypic Engineering Co., Ltd. (002170.SZ) acquires Beijing JinheTech Co., Ltd. which focuses on agricultural informatization.
TOP
[Announcement Interpretation]
○Longmaster Information ＆ Technology to control Sixth People's Hospital of Guiyang to make planning in Internet-based hospital
------
Longmaster Information ＆ Technology Co., Ltd. (300288.SZ) plans to acquire 66 percent equities of the Sixth People's Hospital of Guiyang by increasing capital in the company with 155 million yuan. The Sixth People's Hospital of Guiyang is a second-class grade A hospital covering medical care, teaching, scientific research, disease prevention, health care and recovery. The equity acquisition of Longmaster Information ＆ Technology aims at building the hospital into a nationally well-known Internet-based hospital brand.
○Palm Landscape Architecture signs big order and resumes trading
------
Palm Landscape Architecture Co., Ltd. (002431.SZ) together with Guangdong Guoyuan Construction Engineering Co., Ltd. win the bidding of a big project with the contract amount recording around 1,422 million yuan, accounting for 28.40 percent of the company's revenue in 2014. Palm Landscape Architecture also announces the termination of the acquisition of Shenzhen TBL Science and Technology Co., Ltd.
TOP
○Zhongtai Chemical acquires equities of three companies to optimize industrial chain
------
Xinjiang Zhongtai Chemical Co., Ltd. (002092.SZ) plans to acquire 54 percent equities of Xinjiang Fulida Fiber Co., Ltd., 49 percent equities of Bazhou Jinfu Special Yarn Co., Ltd. and 100 percent equities of Xinjiang Lantian Petrochemistry Logistics Co., Ltd. with around 2.8 billion yuan. Upon completion of the transaction, the three companies will become Zhongtai Chemical's fully-owned subsidiaries. 383 million shares should be issued if the offering price of the private placement is set at 7.32 yuan per share. The original shareholders of the three companies promise that their net profit in 2016 will be no less than 420 million yuan, 74.47 million yuan and 63.66 million yuan, respectively. Zhongtai Chemical also plans to raise a supporting fund of 2.8 billion yuan through private placement at no less than 7.32 yuan per share. Fulida Fiber is a leading domestic enterprise engaged in rayon staple industry and Lantian Petrochemistry Logistics is also the company's important supplier of logistics transportation. The acquisition and integration will help the company to form a whole industrial chain.
○Honglu Steel Construction invests RMB1.2 bln in green building and intelligent parking
------
Anhui Honglu Steel Construction (Group) Co., Ltd. (002541.SZ) plans to raise 1,218 million yuan by issuing 73.16 million shares at a price of no less than 16.65 yuan per share through private placement. The fundraising will be used for the modernization project of green building industry, high-end intelligent mechanical parking equipment, intelligent manufacturing technology upgrading project and debt repayment. The first three projects are expected to gain 148 million yuan of net profits after reaching the designed capacity. Net profit of the company recorded 140 million yuan in 2014.
○Daoming Optics ＆ Chemical participates in Maidete Optics to embark on AR ＆ VR equipment
------
Daoming Optics ＆ Chemical Co., Ltd. (002632.SZ) plans to add investment of 30 million yuan in Nanjing Maidete Optics Co., Ltd. to acquire 34 percent equity of the company. Products of Maidete Optics are mainly applied in laser emission equipment, virtual reality (VR) and augmented reality (AR) helmets, combat helmets, security and protection monitoring equipment, face identification equipment, biochemical equipment and other high end fields.
[Financial Reports Express]
○Shengyang Science and Technology proposes high share conversion and dividend
------
Ye Liming, actual controller of Zhejiang Shengyang Science and Technology Co., Ltd. (603703.SH), proposes a 15-for-10 conversion of capital surplus into shares combined with cash dividend in distributing the company's profit in 2105.
[Trading Trends]
○Ban on brokerages' net selling lifted, bringing limited negative impact
------
China Securities Regulatory Commission (CSRC) recently issued a circular to securities companies that resumes the regular supervision of securities brokerages and cancels the rule requiring the proprietary position to keep net buying in stocks each day. Staff from a large securities brokerages indicated that after the ban was lifted, the securities company did not cut positions a lot, but it only reduced the positions of some stocks which saw significant increase previously and kept some excellent stocks whose price rose to a limit or did not climb but trading volume surged.
Comment: Institutions believed that the market does not have to worry too much about impact of the lifting of the ban. It is estimated that the total stock positions of the whole securities industry are worth 300 billion yuan at most. The daily turnover of Shenzhen and Shanghai stock exchanges has recovered to about 800 billion to 1 trillion yuan now, which indicates that capitals enter the market orderly. Therefore, even if the brokerages lower positions recently, the market is able to bear it.
TOP
○Military reform to substantially implement soon, network troop and aero-troop seem ready
○Forum on formulation of 13th 5-year plan for agricultural technology innovation convened, progress of informatization to speed up
○Longmaster Information ＆ Technology to control Sixth People's Hospital of Guiyang, Palm Landscape Architecture signs big order
○Zhongtai Chemical to optimize industrial chain, Shengyang Science and Technology proposes high share conversion and dividend
TOP
[SSN Focus]
○Military reform to substantially implement soon, network troop and aero-troop seem ready
------
Jiefangjun Bao and Jiefangjun Branch of the Xinhua News Agency frequently issued a series of reports in recent days, and pointed out that military reform will be substantially carried out soon. Based on key information in the comprehensive reports, this military reform will rebuild operational command system and restructure the troops with the most intensified strength. Modern wars transform towards the fields of network and aerospace from the traditional fields with rapid and major changes. New combat forces of Chinese troops, such as "network troop" and "aero-troop", seem ready to come out at our call.
Comments: Powerful nation must have strong arm, and strong arm must reform. China is now at a crucial stage of becoming powerful from just big, and military construction should realize a "corner overtaking" and "key overstepping", which must reform quickly. It is predicted that military reform scheme to be issued will inspire Chinese people and attract the global attention. Construction for new combat forces of Chinese troops, such as "network troop" and "aero-troop", will greatly enhance the industries of China's network security, aviation and Beidou navigation satellite system. Listed companies related to military qualification in the said industries will gain huge development space.
◆A Russia fighter crashed in the border of Turkey on Nov. 24. Headquarter of Turkish armed forces made a statement that the Turkish military shot down the said fighter. Up to the issuance, main European stock indexes generally declined.
[SSN Selection]
○Chinese President Xi Jinping made important instructions on hosting the Beijing Olympic Winter Games, with the principle of green, share, openness and honest for the Olympics.
○The National Equities Exchange and Quotations (NEEQ) solicits public opinions for multi-layer scheme of the New Third Board. Innovation layer will firstly carry out innovative pilot on financing and transaction systems.
○Site meeting for reform on national state-owned forest farms has been held on Nov. 24, and leaders of the State Forestry Administration indicated that preparation will be accelerated to formulate provincial reform scheme.
○Officer of the National Development and Reform Commission revealed in the World Robot Exhibition that various departments are researching on formulation of certification system for robot products and key components.
○HNA Tourism Group proposes to invest in tuniu.com with 500 million US dollars to acquire 24.1 percent equities of the company, becoming the largest shareholder.
TOP
[Industry Information]
○Forum on formulation of 13th 5-year plan for agricultural technology innovation convened, progress of informatization to speed up
------
SSN learns that the Ministry of Science and Technology (MOST) recently convened a forum on the formulation of the thirteenth five-year plan for agricultural technology innovation. The forum introduced the general progress of the MOST's technology system management reform as well as the reform on technology plan management in rural areas and agricultural industry. The forum believed that the formulation of the plan this time will further intensify unified planning of scientific research projects and platforms as well as the resource input in cultivating talents, and it will coordinate the relationship between national common problems and regional differential development.
Comment: Technology innovation, as an important driver behind agricultural modernization, is also an important tool in removing poverty. Under the great push of policies, segmented industries including e-commerce in rural areas and agricultural informatization will embrace rapid development. As to listed companies, the agricultural materials e-commerce platform www.16899.com under Jiangsu Huifeng Agrochemical Co., Ltd. (002496.SZ) develops large-scale sales promotion from Nov.22 to 24. Its trading volume during the period sets a new record to 13.47 million yuan. Nongrj.com, an e-commerce platform under Anhui Huilong Agricultural Means of Production Co., Ltd. (002556.SZ), has gone live; Shenzhen Batian Ecotypic Engineering Co., Ltd. (002170.SZ) acquires Beijing JinheTech Co., Ltd. which focuses on agricultural informatization.
TOP
[Announcement Interpretation]
○Longmaster Information ＆ Technology to control Sixth People's Hospital of Guiyang to make planning in Internet-based hospital
------
Longmaster Information ＆ Technology Co., Ltd. (300288.SZ) plans to acquire 66 percent equities of the Sixth People's Hospital of Guiyang by increasing capital in the company with 155 million yuan. The Sixth People's Hospital of Guiyang is a second-class grade A hospital covering medical care, teaching, scientific research, disease prevention, health care and recovery. The equity acquisition of Longmaster Information ＆ Technology aims at building the hospital into a nationally well-known Internet-based hospital brand.
○Palm Landscape Architecture signs big order and resumes trading
------
Palm Landscape Architecture Co., Ltd. (002431.SZ) together with Guangdong Guoyuan Construction Engineering Co., Ltd. win the bidding of a big project with the contract amount recording around 1,422 million yuan, accounting for 28.40 percent of the company's revenue in 2014. Palm Landscape Architecture also announces the termination of the acquisition of Shenzhen TBL Science and Technology Co., Ltd.
TOP
○Zhongtai Chemical acquires equities of three companies to optimize industrial chain
------
Xinjiang Zhongtai Chemical Co., Ltd. (002092.SZ) plans to acquire 54 percent equities of Xinjiang Fulida Fiber Co., Ltd., 49 percent equities of Bazhou Jinfu Special Yarn Co., Ltd. and 100 percent equities of Xinjiang Lantian Petrochemistry Logistics Co., Ltd. with around 2.8 billion yuan. Upon completion of the transaction, the three companies will become Zhongtai Chemical's fully-owned subsidiaries. 383 million shares should be issued if the offering price of the private placement is set at 7.32 yuan per share. The original shareholders of the three companies promise that their net profit in 2016 will be no less than 420 million yuan, 74.47 million yuan and 63.66 million yuan, respectively. Zhongtai Chemical also plans to raise a supporting fund of 2.8 billion yuan through private placement at no less than 7.32 yuan per share. Fulida Fiber is a leading domestic enterprise engaged in rayon staple industry and Lantian Petrochemistry Logistics is also the company's important supplier of logistics transportation. The acquisition and integration will help the company to form a whole industrial chain.
○Honglu Steel Construction invests RMB1.2 bln in green building and intelligent parking
------
Anhui Honglu Steel Construction (Group) Co., Ltd. (002541.SZ) plans to raise 1,218 million yuan by issuing 73.16 million shares at a price of no less than 16.65 yuan per share through private placement. The fundraising will be used for the modernization project of green building industry, high-end intelligent mechanical parking equipment, intelligent manufacturing technology upgrading project and debt repayment. The first three projects are expected to gain 148 million yuan of net profits after reaching the designed capacity. Net profit of the company recorded 140 million yuan in 2014.
○Daoming Optics ＆ Chemical participates in Maidete Optics to embark on AR ＆ VR equipment
------
Daoming Optics ＆ Chemical Co., Ltd. (002632.SZ) plans to add investment of 30 million yuan in Nanjing Maidete Optics Co., Ltd. to acquire 34 percent equity of the company. Products of Maidete Optics are mainly applied in laser emission equipment, virtual reality (VR) and augmented reality (AR) helmets, combat helmets, security and protection monitoring equipment, face identification equipment, biochemical equipment and other high end fields.
[Financial Reports Express]
○Shengyang Science and Technology proposes high share conversion and dividend
------
Ye Liming, actual controller of Zhejiang Shengyang Science and Technology Co., Ltd. (603703.SH), proposes a 15-for-10 conversion of capital surplus into shares combined with cash dividend in distributing the company's profit in 2105.
[Trading Trends]
○Ban on brokerages' net selling lifted, bringing limited negative impact
------
China Securities Regulatory Commission (CSRC) recently issued a circular to securities companies that resumes the regular supervision of securities brokerages and cancels the rule requiring the proprietary position to keep net buying in stocks each day. Staff from a large securities brokerages indicated that after the ban was lifted, the securities company did not cut positions a lot, but it only reduced the positions of some stocks which saw significant increase previously and kept some excellent stocks whose price rose to a limit or did not climb but trading volume surged.
Comment: Institutions believed that the market does not have to worry too much about impact of the lifting of the ban. It is estimated that the total stock positions of the whole securities industry are worth 300 billion yuan at most. The daily turnover of Shenzhen and Shanghai stock exchanges has recovered to about 800 billion to 1 trillion yuan now, which indicates that capitals enter the market orderly. Therefore, even if the brokerages lower positions recently, the market is able to bear it.
TOP
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