[Today's Guide]
○Green manufacturing engineering implementation scheme to issue, investment to increase in energy conservation and environmental protection
○Navy equipment to highlight civil-military integration, Internet-based marketing favored by capital
○Longlive Bio-Technology expands to digital marketing, Golden Glass Technologies acquires OMG
○Wuhan Financial Holdings to invest in Dalian Friendship, Lincang Xinyuan Germanium Industry receives big orders
[SSN Focus]
○Green manufacturing engineering implementation scheme to issue, investment to increase in energy conservation and environmental protection
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Related leader of the Ministry of Industry and Information Technology (MIIT) on Dec. 3 indicated that as a major measure to implement the strategy of "Made in China 2025", the Implementation Scheme on Green Manufacturing Engineering is likely to be issued and carried out in recent period. The MIIT will focus on promoting four tasks now and in the future: to carry out clean and low-carbon reform on traditional manufacturing industry; to promote cyclic utilization of resources including industrial solid wastes; to enhance related technical innovation and industrial application demonstration; to build up green manufacturing system.
Comment: After rapid development of over 30 years, issues on resource, energy and environment have become the key points restricting next-step development of China's manufacturing industry, and the strategy of "Made in China 2025" also regards the "green development" as one of the five guidelines. Institutions believe that green manufacture will be another developing trend as important as the intelligent manufacture. In terms of companies listed in A-share market, Xiamen Savings Environmental Co., Ltd. (300056.SZ) has its dedusting filter materials widely applied in the industries of cement, steel, chemical engineering and etc.; Wuxi Xuelang Environmental Technology Co., Ltd. (300385.SZ) has its recycling equipment of ash resource applied in the nonferrous metal enterprises; Changsha Kaiyuan Instruments Co., Ltd. (300338.SZ) develops intelligent management ＆ control system for the fuel.
[SSN Selection]
○Chinese Premier Li Keqiang on Dec. 2 hosted an expert discussion meeting for economic work, proposing to boost the structural reform based on supply and demand sides.
○The China Securities Regulatory Commission on Dec. 3 announced that ten companies have finished the restart of issuance record for IPOs, and it will discuss the detailed issuance agenda with Shanghai and Shenzhen stock exchanges.
○The central government issued the Pilot Scheme on Damage Compensation System Reform for Ecological Environment, and required repair or compensation for ecological environment by the responsible party.
○The Ministry of Industry and Information Technology carried out the deliberation on five-year development planning for robot industry, proposing to intensify the strength to develop and apply the service-robot.
○Baidu, Inc. (BIDU.NASDAQ) announced that it will establish a department of education business to deploy the online education field with internal resources.
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[Industry Information]
○Products catalogue on civil participation in military issued, increasing demand for navy equipment
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The Ministry of Industry and Information Technology (MIIT) and the State Administration of Science, Technology and Industry for National Defense jointly issued and printed 2015 products catalogue on civil participation in military on Dec. 3. Catering to the demand for military equipment construction, this catalogue focuses on nine fields including new marine mechanical equipment and new marine function materials. It is also learnt that the 8th session of the China Military-Civil Integration Annual Meeting is going to be held in Beijing on Dec. 26 and 27. The meeting agenda shows that contents including constructing national marine security strategy and improving the development level of navy equipment will be the focus of the meeting.
Comment: Driven by the strategy of maritime power and the military-civil integration, navy equipment market will embrace 100-billion-yuan market. Private enterprises qualified for producing military products and mastering core technologies will embrace opportunities to increase market share. As to listed companies, Asian Star Anchor Chain Co., Ltd. Jiangsu (601890.SH) is a domestic provider of naval anchor chain. The polyimide thermal-insulation material for warships, which is developed by Shanghai Kangda New Materials Co., Ltd. (002669.SZ), has passed the military review.
○Internet-based marketing favored by enterprises and sees increasing capital investment
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SSN learns from the 2015 Global Digital Marketing Summit held recently that brand advertisers show increasing interest in Internet-based marketing. It is becoming a new trend to resort to big data platform to realize digital management of Internet-based advertisement. Data shows that Internet-based advertisement has beaten TV to become the No.1 advertising media in China and sees an average annual growth rate of over 40 percent in terms of market size.
Comment: Compared with traditional advertisement, digital marketing helps to find users for advertisers, timely monitor advertisement effect and precisely put advertisement. Capital market shows increasing enthusiasm in Internet-based marketing since this year. Wutong Holding Group Co., Ltd. (300292.SZ), Keda Group Co., Ltd. (600986.SH) and Guangdong Sky Dragon Printing Ink Group Co., Ltd. (300063.SZ) all acquire underlying assets engaged in Internet-based marketing to proceed with business transformation. Beijing Ipinyou Information Technology Co., Ltd., a company engaged in big data marketing platform, announced on Dec.3 that it is preparing for being listed on A-share market. The funds under Beijing Gehua CATV Network Co., Ltd. (600037.SH) will be involved in the financing of Ipinyou before it is listed on A-share market.
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[Announcement Interpretation]
○Longlive Bio-Technology expands to digital marketing and issuance
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Shandong Longlive Bio-Technology Co., Ltd. (002604) plans to acquire 100 percent equities of Xiamen 01cloud Information Technology Co., Ltd. and Zrong (Beijing) Technology Development Co., Ltd. with 1,015 million yuan by issuing shares at 11.79 yuan per share through private placement and paying in cash. Longlive Bio-Technology also plans to raise a supporting fund at 14.68 yuan per share. 01cloud Information Technology is principally engaged in digital marketing, while Zrong is mainly engaged in the issuance of digital content. The counterparty promises that the net profit of the two companies in 2016 will be no less than 52 million yuan and 39 million yuan, respectively. The stock price of Longlive Bio-Technology closed at 8.24 yuan per share before trading suspension.
○Golden Glass Technologies acquires OMG to set foot in virtual reality
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Guangdong Golden Glass Technologies Limited (300093.SZ) plans to acquire 100 percent equity of Onwards Media Group Pte Ltd. (OMG) at 3 billion yuan by issuing shares at a price of 14.53 yuan per share through private placement. In addition, it will raise supporting funds by issuing shares at a price of 20.14 yuan per share to invest in WIFI controller and authentication, virtual reality and augmented reality, and big data analysis. The OMG runs business in content distribution network (CDN) industry and its core products focus on OTT solutions customized for the demand of network video operators. The counterparty promises that the net profit after extraordinary gains and losses of OMG will be no less than 288 million yuan next year. The company's share price ended at 25.86 yuan per share before trading suspension.
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○Wuhan Financial Holdings to invest in Dalian Friendship
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Dalian Friendship (Group) Co., Ltd. (000679) plans to buy equities of 8 companies including Wuhan Credit Guarantee Group and Wuhan small and medium guarantee companies to turn to finance industry with 6.27 billion yuan by issuing shares at 9.51 yuan per share through private placement. In addition, the company will raise supporting funds by issuing shares at a base price of 11.02 yuan per share. After this is done, Wuhan Financial Holdings (Group) Co., Ltd. will become the actual controller of the company. The counterparty promises that the net profit after extraordinary gains and losses of the underlying assets will be no less than 638 million yuan next year. The company's share price ended at 16.48 yuan per share before trading suspension.
○Lincang Xinyuan Germanium Industry receives big orders
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Yunnan Lincang Xinyuan Germanium Industry Co., Ltd. (002428.SZ) received the client's supply contract with a total amount of 140 million yuan, accounting for 26 percent of its operating revenue last year. The announcement revealed that as the deal involved keeping relevant secrets, detailed information of the counterparty would be exempted from disclose according to provisions by laws and regulations. A research report of institutions showed that the company previously made deployment in military engineering field.
[Trading Trends]
○Kingland Pipeline and Technologies bought through 2 institutional seats
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The trading volume ranking list on Dec. 3 shows that Zhejiang Kingland Pipeline and Technologies Co., Ltd. (002443.SZ) was bought through two institutional seats with a total of 75.84 million yuan, accounting for 9 percent of its intraday turnover. There was not institutional seat selling stocks.
Comment: Institutions believe that the company leading in steel pipeline industry benefits from the promotion of sponge city construction. The decline in price of raw material of upstream industry caused the comprehensive gross profit rate to increase continuously. In addition to the company's development in smart pipe network operation service, the company's future development is to be expected.
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