[Today's Guide]
> CAAM expects vehicles sales up 7 pct in 2015, securities companies rosy about revaluation in vehicle industry
> One Road and One Belt program approved to release soon, Xinjiang and Lianyungang pioneer in breakthrough
> New bullet train lines see full occupancy, standardization plan facilitates industry development
> Dahu Aquaculture turns to water environment treatment
[XFA Focus]
○ CAAM expects vehicles sales up 7 pct in 2015, securities companies rosy about revaluation in vehicle industry
According to the statistics released by China Association of Automobile Manufacturers (CAAM) on Jan. 12, the output and sales of vehicles in China both surpassed 23 million units in 2014, ranking first globally for six consecutive years. CAAM estimates that the sales of vehicles will reach 25.13 million units this year, increasing 7 percent year on year. The sales of passenger vehicles will increase 8 percent while the commercial vehicles will grow 2.4 percent.
Comment: Many securities companies believe that the vehicle industry is still booming with low risks and valuation. Flagship enterprises in the industry are likely to be further revalued. Besides, the complete vehicle industry is dominated by central and state-owned enterprises, which are priorities in the SOEs reform and will benefit from the positive changes from this round of SOEs reform. Among the enterprises, the sales of Envision SUV, a new product of SAIC Motor Corporation Limited (600104.SH), reached more than 10,000 last Dec. and its contribution to the profit is likely to surpass the estimation in 2015. The hot sale of SUVs of Anhui Jianghuai Automobile Co., Ltd. (600418.SH) boosted the sale of the company up 26 percent in last Dec. and the company will record high performance growth in 2015. With the implementation of three strategies including neutralization and internationalization, Huayu Automotive Systems Company Limited (600741.SH) has greatly reduced its dependence on its substantial shareholders.
◆ New energy vehicles output hike, lithium carbonate enterprise to raise price
Driven by the sales increase of new energy vehicles and the restrictions on the equipment for lithium extraction from salt lakes in winter, various producers raised the prices of lithium carbonate on Jan. 12 by 500 to 2,500 yuan per ton and the maximum increase reached 6 percent. The current price of lithium carbonate jumped 15 percent from the beginning of 2014.
Comment: The output of new energy vehicles reached more than 27,000 units last Dec. and the new energy vehicles market was strongly opened. Institutes expect that the lithium carbonate price will rise 10 to 20 percent in 2015 driven by the sales growth of downstream new energy vehicles. Talison Lithium Pty Ltd., a subsidiary of Sichuan Tianqi Lithium Industries, Inc. (002466.SZ), is the biggest solid lithium ores manufacturer globally and accounts for two thirds of the global spodumene ores supply. Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ) is a leader in the domestic further lithium processing industry and its new lithium carbonate production line with 5,000 tons has been under trial run. Jiangxi Special Electric Motor Co., Ltd. (002176.SZ) is equipped with the lepidolite extraction technology and owns abundant lithium resources. It is constructing a lithium carbonate production line with an annual output of 8,000 tons.
[XFA Selection]
○ The target for the exploration of coalbed methane in 2020 is revised to 40 billion cubic meters. The reform for energy conservation and emission reduction in coal-fired power plants will be further accelerated.
○ National Health and Family Planning Commission will fully advance the reform of public hospitals in 2015. The application for the second child by couples with either of them being an only child in 2015 is expected to increase from the 1 million in 2014.
○ National Tourism Administration released guidance on the development of smart tourism, proposing the establishment of the ticket reservation system and the prediction mechanism for the degree of crowding in scenic spots.
○ Jia Yueting, Chairman of the board of Leshi Internet Information & Technology Corp., Beijing (300104.SZ), is expected to resume working at the company as the examination results after surgery was good.
○ Hubei Hwalle Dyestuff industry Co., Ltd., a leading enterprise in the domestic reactive dye industry, had an accident last weekend. Insiders expect that there might be panic on supply in short term.
[Industry Information]
○ One Road and One Belt program approved to release soon, Xinjiang and Lianyungang pioneer in breakthrough
XFA learnt that the One Road and One Belt program has been officially approved and will be released soon. Xinjiang Uyghur Autonomous Region and Lianyungang City as the two starting points will be key breakthroughs. It is learnt from the ongoing two sessions of Urumchi City that the city will actively apply for the trial zone for Asian-European economic and trade cooperation and accelerate the construction of the comprehensive bonded zone and the landway port in Urumchi in order to build it a logistics and financial center on the Silk Road Economic Belt. It is also said that the trial zone may be upgraded to a free trade zone.
> CAAM expects vehicles sales up 7 pct in 2015, securities companies rosy about revaluation in vehicle industry
> One Road and One Belt program approved to release soon, Xinjiang and Lianyungang pioneer in breakthrough
> New bullet train lines see full occupancy, standardization plan facilitates industry development
> Dahu Aquaculture turns to water environment treatment
[XFA Focus]
○ CAAM expects vehicles sales up 7 pct in 2015, securities companies rosy about revaluation in vehicle industry
According to the statistics released by China Association of Automobile Manufacturers (CAAM) on Jan. 12, the output and sales of vehicles in China both surpassed 23 million units in 2014, ranking first globally for six consecutive years. CAAM estimates that the sales of vehicles will reach 25.13 million units this year, increasing 7 percent year on year. The sales of passenger vehicles will increase 8 percent while the commercial vehicles will grow 2.4 percent.
Comment: Many securities companies believe that the vehicle industry is still booming with low risks and valuation. Flagship enterprises in the industry are likely to be further revalued. Besides, the complete vehicle industry is dominated by central and state-owned enterprises, which are priorities in the SOEs reform and will benefit from the positive changes from this round of SOEs reform. Among the enterprises, the sales of Envision SUV, a new product of SAIC Motor Corporation Limited (600104.SH), reached more than 10,000 last Dec. and its contribution to the profit is likely to surpass the estimation in 2015. The hot sale of SUVs of Anhui Jianghuai Automobile Co., Ltd. (600418.SH) boosted the sale of the company up 26 percent in last Dec. and the company will record high performance growth in 2015. With the implementation of three strategies including neutralization and internationalization, Huayu Automotive Systems Company Limited (600741.SH) has greatly reduced its dependence on its substantial shareholders.
◆ New energy vehicles output hike, lithium carbonate enterprise to raise price
Driven by the sales increase of new energy vehicles and the restrictions on the equipment for lithium extraction from salt lakes in winter, various producers raised the prices of lithium carbonate on Jan. 12 by 500 to 2,500 yuan per ton and the maximum increase reached 6 percent. The current price of lithium carbonate jumped 15 percent from the beginning of 2014.
Comment: The output of new energy vehicles reached more than 27,000 units last Dec. and the new energy vehicles market was strongly opened. Institutes expect that the lithium carbonate price will rise 10 to 20 percent in 2015 driven by the sales growth of downstream new energy vehicles. Talison Lithium Pty Ltd., a subsidiary of Sichuan Tianqi Lithium Industries, Inc. (002466.SZ), is the biggest solid lithium ores manufacturer globally and accounts for two thirds of the global spodumene ores supply. Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ) is a leader in the domestic further lithium processing industry and its new lithium carbonate production line with 5,000 tons has been under trial run. Jiangxi Special Electric Motor Co., Ltd. (002176.SZ) is equipped with the lepidolite extraction technology and owns abundant lithium resources. It is constructing a lithium carbonate production line with an annual output of 8,000 tons.
[XFA Selection]
○ The target for the exploration of coalbed methane in 2020 is revised to 40 billion cubic meters. The reform for energy conservation and emission reduction in coal-fired power plants will be further accelerated.
○ National Health and Family Planning Commission will fully advance the reform of public hospitals in 2015. The application for the second child by couples with either of them being an only child in 2015 is expected to increase from the 1 million in 2014.
○ National Tourism Administration released guidance on the development of smart tourism, proposing the establishment of the ticket reservation system and the prediction mechanism for the degree of crowding in scenic spots.
○ Jia Yueting, Chairman of the board of Leshi Internet Information & Technology Corp., Beijing (300104.SZ), is expected to resume working at the company as the examination results after surgery was good.
○ Hubei Hwalle Dyestuff industry Co., Ltd., a leading enterprise in the domestic reactive dye industry, had an accident last weekend. Insiders expect that there might be panic on supply in short term.
[Industry Information]
○ One Road and One Belt program approved to release soon, Xinjiang and Lianyungang pioneer in breakthrough
XFA learnt that the One Road and One Belt program has been officially approved and will be released soon. Xinjiang Uyghur Autonomous Region and Lianyungang City as the two starting points will be key breakthroughs. It is learnt from the ongoing two sessions of Urumchi City that the city will actively apply for the trial zone for Asian-European economic and trade cooperation and accelerate the construction of the comprehensive bonded zone and the landway port in Urumchi in order to build it a logistics and financial center on the Silk Road Economic Belt. It is also said that the trial zone may be upgraded to a free trade zone.
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