[Today's Guide]
> China Telecom to build the largest WiFi system in China, wireless network construction expected to accelerate
> MIIT arranges power demand side management to support Internet of energy strategy
> Tianma Specialty Chemicals to see new controlling shareholder，Enjoyor to boost intelligent transportation
> Lancy to buy South Korean cosmetic firm，ZheJiang Daily Media Group to raise fund through private placement
[SSN Focus]
○China Telecom to build the largest WiFi system in China, wireless network construction expected to accelerate
------
Right on the day ahead of the second World Internet Conference, "Light of Internet" expo was held on Dec. 15 in Wuzhen, Zhejiang Province. China Telecom Corporation Limited ("China Telecom") (00728.HK) released its new product "Love WiFi" at the expo, planning to build the largest free WiFi service system in China in the next three to five years. China Telecom indicated that upon completion of the service platform, the eternal free WiFi service could be sustained through many ways, including advertisement revenue. Wuzhen is the first "Love WiFi" town jointly built by local government and China Telecom, with the network speed could be as fastest as 300Mbps.
Comment: in the mobile internet era, free WiFi is a new entrance that could attract massive users, and it is also a strength point supporting information consumption and "Broadband China" strategy. Internet giants like Alipay and Xiaomi are actively penetrating into free WiFi market. Relevant equipment providers are expected to benefit from this wave of wireless network construction. A-share companies, such as Fujian Star-net Communication Co., Ltd. (002396.SZ), Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH), Shanghai East-China Computer Co., Ltd. (600850.SH), have won bidding in centralized purchasing of China Telecom.
[SSN Selection]
○China Securities Regulatory Commission (CSRC) announce that the last eight companies in 28 IPO listing issuers have accomplished relevant work and will restart offering soon.
○National Development and Reform Commission (NDRC) decided to postpone the adjustment of the prices of domestic petroleum products, giving full play to the lever effect of price to promote energy saving and control air pollution.
○Sinopec announced that Fuling National Shale Gas Demonstration Area has passed the examination and acceptance of the National Energy Administration. Critical equipment and ancillary tools the gas field applied are home-made.
○The State Grid has commenced the construction of two extra-high voltage direct current projects. It indicated that "Four Alternate and Four Direct", an air pollution control action plan, has fully started.
○Three ministries jointly issued a circular urging comprehensive implementation of ultralow emission and energy saving transformation on coal-fired power plants, and requiring all coal-fired units to be equipped with high-efficient desulfurization and denitrification dust removal facilities.
○As of Dec. 14, 15 poultry farms in France had reported bird flu, the poultries and eggs will all be destroyed.
TOP
[Industry Information]
○MIIT arranges power demand side management to support Internet of energy strategy
------
The Ministry of Industry and Information Technology (MIIT) discloses on its website on Dec. 15 that to implement the power system reform and accelerate in promoting revolution in energy consumption, it recently convened a symposium on the power demand side management in industry. The meeting proposed that it will conduct special campaigns on promoting the power demand side management, conduct the expansion of pilot and demonstration of demand side management and regulate the transactions between industrial enterprises and power generation enterprises.
Comment: As a key part in power system reform, the power demand side management will facilitate the consumption of power generated with renewable energy, promote the development of smart grid and achieve the targets of energy conservation and emission reduction. It will lay solid foundation for the establishment of the Internet of energy. In terms of listed companies, the intelligent power consumption and intelligent grid of Shenzhen Clou Electronics Co., Ltd. (002121.SZ) account for a large proportion. It also owns PV power generation, energy storage, charging piles and other businesses. Beijing Creative Distribution Automation Co., Ltd. (002350.SZ), principally engaged in the manufacturing of power distribution equipment, is actively developing power operation and maintenance services..
TOP
[Announcement Interpretation]
○Tianma Specialty Chemicals to see new controlling shareholder and conduct transformation
------
The controlling shareholder of Suzhou Tianma Specialty Chemicals Co., Ltd. (002453.SZ) proposes to sell all of its 20.67 percent equities in the company at 11.5 yuan per share to Shenzhen Xingmei New Energy Automobile Co., Ltd. The latter is principally engaged in new energy vehicles, batteries and charging facilities. It will become the new controlling shareholder of the company after the transaction. Xingmei New Energy Automobile indicated that it may sell or consolidate the assets and businesses of the company, conduct cooperation with others or conduct reorganization plans on purchasing, exchanging or injecting assets of the listed company in the following 12 months. The company closed at 9.33 yuan before trading suspension.
○Enjoyor to boost intelligent transportation and intelligent medical care
------
Enjoyor Co., Ltd. (300020.SZ) intends to acquire 40 percent and 70 percent equities of Jiangsu Zhitu Technology Co., Ltd. and Hangzhou Qingpu Information Technology with 298 million yuan by issuing shares at 16.69 yuan per share through private placement and in cash. It also plans to raise a supporting fund of no more than 181 million yuan. Zhitu Technology is engaged in obtaining geographic information and data, data processing, the development of application software for geographic information and geographic information surveying and mapping services. Qingpu Information Technology focuses on the IT application in the medical treatment and health industry. The counterparty committed that the net profit after extraordinary items of the two companies in 2016 in the combined statements will be no less than 20 million yuan and 8.50 million yuan, respectively. The company closed at 14.02 yuan before trading suspension.
TOP
○Lancy to buy South Korean cosmetic firm
------
The subsidiary of Lancy Co., Ltd. (002612.SZ) proposes to acquire 10 percent equities in L＆P Cosmetic Co., Ltd. with 330 million yuan. L＆P Cosmetic is one of the fasted growing cosmetic companies in South Korean in recent years and ranks top in the industry in terms of its business scale. Its featured product is Mediheal facial mask. The net profit of L＆P Cosmetic from January to September this year was 190 million yuan. The acquisition is a another lead forward of Lancy into the fashion industry, including women's wear, infant and baby products, cosmetic and medical cosmetology.
○ZheJiang Daily Media Group Co., Ltd. (600633.SH) plans to raise no more than 2.0 billion yuan through private placement for the construction of Internet data center and big dater trading center.
[Financial Reports Express]
○Hubei Biocause Pharmaceutical Co., Ltd. (000627.SZ) forecasts its earnings to grow by 1.5 to 2 times as the equities that it holds in Guohua Life Insurance are changed from available-for-sale financial assets into long-term equity investments and will be accounted by equity method.
[Trading Trends]
○Four institutes buy Sinosun Tech.
------
The trading volume ranking list on Dec. 15 shows that four institutes bought Sinosun Technology Co., Ltd. (300333.SZ) with a total of 280 million yuan, accounting for 29 percent of its intraday turnover. No institutional seat sold it.
Comment: Institutes believe that the world-class fingerprint identification product developed by the company have witnessed its functions improve gradually after put into commercial use, and the sales of its hardware products at home are expected to reach 3.75 billion to 7.5 billion yuan. The company's operating revenue was 180 million last year, laying a foundation for its rapid growth in the future. In addition, the company is likely to provide more diversified value-added services, such as the Internet-based bank notes innovation. There is a huge potential market for relevant service charges.
TOP
> China Telecom to build the largest WiFi system in China, wireless network construction expected to accelerate
> MIIT arranges power demand side management to support Internet of energy strategy
> Tianma Specialty Chemicals to see new controlling shareholder，Enjoyor to boost intelligent transportation
> Lancy to buy South Korean cosmetic firm，ZheJiang Daily Media Group to raise fund through private placement
[SSN Focus]
○China Telecom to build the largest WiFi system in China, wireless network construction expected to accelerate
------
Right on the day ahead of the second World Internet Conference, "Light of Internet" expo was held on Dec. 15 in Wuzhen, Zhejiang Province. China Telecom Corporation Limited ("China Telecom") (00728.HK) released its new product "Love WiFi" at the expo, planning to build the largest free WiFi service system in China in the next three to five years. China Telecom indicated that upon completion of the service platform, the eternal free WiFi service could be sustained through many ways, including advertisement revenue. Wuzhen is the first "Love WiFi" town jointly built by local government and China Telecom, with the network speed could be as fastest as 300Mbps.
Comment: in the mobile internet era, free WiFi is a new entrance that could attract massive users, and it is also a strength point supporting information consumption and "Broadband China" strategy. Internet giants like Alipay and Xiaomi are actively penetrating into free WiFi market. Relevant equipment providers are expected to benefit from this wave of wireless network construction. A-share companies, such as Fujian Star-net Communication Co., Ltd. (002396.SZ), Fiberhome Telecommunication Technologies Co., Ltd. (600498.SH), Shanghai East-China Computer Co., Ltd. (600850.SH), have won bidding in centralized purchasing of China Telecom.
[SSN Selection]
○China Securities Regulatory Commission (CSRC) announce that the last eight companies in 28 IPO listing issuers have accomplished relevant work and will restart offering soon.
○National Development and Reform Commission (NDRC) decided to postpone the adjustment of the prices of domestic petroleum products, giving full play to the lever effect of price to promote energy saving and control air pollution.
○Sinopec announced that Fuling National Shale Gas Demonstration Area has passed the examination and acceptance of the National Energy Administration. Critical equipment and ancillary tools the gas field applied are home-made.
○The State Grid has commenced the construction of two extra-high voltage direct current projects. It indicated that "Four Alternate and Four Direct", an air pollution control action plan, has fully started.
○Three ministries jointly issued a circular urging comprehensive implementation of ultralow emission and energy saving transformation on coal-fired power plants, and requiring all coal-fired units to be equipped with high-efficient desulfurization and denitrification dust removal facilities.
○As of Dec. 14, 15 poultry farms in France had reported bird flu, the poultries and eggs will all be destroyed.
TOP
[Industry Information]
○MIIT arranges power demand side management to support Internet of energy strategy
------
The Ministry of Industry and Information Technology (MIIT) discloses on its website on Dec. 15 that to implement the power system reform and accelerate in promoting revolution in energy consumption, it recently convened a symposium on the power demand side management in industry. The meeting proposed that it will conduct special campaigns on promoting the power demand side management, conduct the expansion of pilot and demonstration of demand side management and regulate the transactions between industrial enterprises and power generation enterprises.
Comment: As a key part in power system reform, the power demand side management will facilitate the consumption of power generated with renewable energy, promote the development of smart grid and achieve the targets of energy conservation and emission reduction. It will lay solid foundation for the establishment of the Internet of energy. In terms of listed companies, the intelligent power consumption and intelligent grid of Shenzhen Clou Electronics Co., Ltd. (002121.SZ) account for a large proportion. It also owns PV power generation, energy storage, charging piles and other businesses. Beijing Creative Distribution Automation Co., Ltd. (002350.SZ), principally engaged in the manufacturing of power distribution equipment, is actively developing power operation and maintenance services..
TOP
[Announcement Interpretation]
○Tianma Specialty Chemicals to see new controlling shareholder and conduct transformation
------
The controlling shareholder of Suzhou Tianma Specialty Chemicals Co., Ltd. (002453.SZ) proposes to sell all of its 20.67 percent equities in the company at 11.5 yuan per share to Shenzhen Xingmei New Energy Automobile Co., Ltd. The latter is principally engaged in new energy vehicles, batteries and charging facilities. It will become the new controlling shareholder of the company after the transaction. Xingmei New Energy Automobile indicated that it may sell or consolidate the assets and businesses of the company, conduct cooperation with others or conduct reorganization plans on purchasing, exchanging or injecting assets of the listed company in the following 12 months. The company closed at 9.33 yuan before trading suspension.
○Enjoyor to boost intelligent transportation and intelligent medical care
------
Enjoyor Co., Ltd. (300020.SZ) intends to acquire 40 percent and 70 percent equities of Jiangsu Zhitu Technology Co., Ltd. and Hangzhou Qingpu Information Technology with 298 million yuan by issuing shares at 16.69 yuan per share through private placement and in cash. It also plans to raise a supporting fund of no more than 181 million yuan. Zhitu Technology is engaged in obtaining geographic information and data, data processing, the development of application software for geographic information and geographic information surveying and mapping services. Qingpu Information Technology focuses on the IT application in the medical treatment and health industry. The counterparty committed that the net profit after extraordinary items of the two companies in 2016 in the combined statements will be no less than 20 million yuan and 8.50 million yuan, respectively. The company closed at 14.02 yuan before trading suspension.
TOP
○Lancy to buy South Korean cosmetic firm
------
The subsidiary of Lancy Co., Ltd. (002612.SZ) proposes to acquire 10 percent equities in L＆P Cosmetic Co., Ltd. with 330 million yuan. L＆P Cosmetic is one of the fasted growing cosmetic companies in South Korean in recent years and ranks top in the industry in terms of its business scale. Its featured product is Mediheal facial mask. The net profit of L＆P Cosmetic from January to September this year was 190 million yuan. The acquisition is a another lead forward of Lancy into the fashion industry, including women's wear, infant and baby products, cosmetic and medical cosmetology.
○ZheJiang Daily Media Group Co., Ltd. (600633.SH) plans to raise no more than 2.0 billion yuan through private placement for the construction of Internet data center and big dater trading center.
[Financial Reports Express]
○Hubei Biocause Pharmaceutical Co., Ltd. (000627.SZ) forecasts its earnings to grow by 1.5 to 2 times as the equities that it holds in Guohua Life Insurance are changed from available-for-sale financial assets into long-term equity investments and will be accounted by equity method.
[Trading Trends]
○Four institutes buy Sinosun Tech.
------
The trading volume ranking list on Dec. 15 shows that four institutes bought Sinosun Technology Co., Ltd. (300333.SZ) with a total of 280 million yuan, accounting for 29 percent of its intraday turnover. No institutional seat sold it.
Comment: Institutes believe that the world-class fingerprint identification product developed by the company have witnessed its functions improve gradually after put into commercial use, and the sales of its hardware products at home are expected to reach 3.75 billion to 7.5 billion yuan. The company's operating revenue was 180 million last year, laying a foundation for its rapid growth in the future. In addition, the company is likely to provide more diversified value-added services, such as the Internet-based bank notes innovation. There is a huge potential market for relevant service charges.
TOP
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