[Today's Guide]
> 20 provinces layout “One Belt and One Road” construction, Inner Mongolia and Shandong Province enter core area.
> Network security review methods to submit for deliberation, information security industry sees broad development space.
> Huapengfei Modern Logistics to fully control Mobility & Motivation Systems, actual controller of Silver Age Sci & Tech to fully subscribe all shares issued through private placement.
> China Meheco mulls acquisition through private placement, Hand Enterprise Solution to acquire EPR service provider.
[XFA Focus]
○ 20 provinces layout “One Belt and One Road” construction, Inner Mongolia and Shandong Province enter core area
------
After sorting out relevant information, XFA finds that there are already 20 provinces having incorporated the construction of the “One Belt and One Road” into their government work reports this year. It is learned that the core area of the “One Belt and One Road” initiative covers 16 provinces with Inner Mongolia and Shandong Province newly added into the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, respectively. Inner Mongolia is going to open up Qiaotoubao in the north, accelerate the construction of national key development and opening-up experimental areas in Manzhouli City and Erenhot City as well as the China- Mongolia-Russia Cooperation Leading Zone in Hulun Buir City, and push forward the infrastructure interconnection with Russia and Mongolia. Shandong Province positions the maritime strategic support of the “One Belt and One Road” initiative. It will deepen the construction of the East Asian maritime cooperation platform and the China-Korea regional economic cooperation, and try to get Qingdao City approved as pilot free trade zone.
Comment: Research institutions believe that the “One Belt and One Road” strategy will comprehensively enhance the opening-up level of China. Relevant inland and coastal ports will benefit from the growth of import/export trade volume, and industries like engineering construction, equipment manufacturing, etc. will also see benefits of the “going out”. Among A-share companies, Baotou Beifang Chuangye Co., Ltd. (600967.SH) is a leading enterprise in producing railway wagons and received lots of overseas orders before; Inner Mongolia North Hauler Joint Stock Co., Ltd. (600262.SH) aims to develop into a world first class tramcar manufacturer. The overseas income of the company accounts for more than 20 percent of its total revenue; Shandong Sunway Petrochemical Engineering Co., Ltd. (002469.SZ) is a leading domestic enterprise in petrochemical industry and coal chemical desulfurization. It won the bids of sulphur recycling recovery device projects in Thailand and Kazakhstan before; Shandong Molong Petroleum Machinery Co., Ltd. (002490.SZ; 00568.HK) is principally engaged in the design and manufacturing of petroleum drill and exploitation equipment with overseas income accounting for more than 30 percent.
◆ Heilongjiang Province promotes central enterprise reform
------
The government work report of Heilongjiang Province published on Jan. 27 proposes that considering that central enterprises account for more than 60 percent of the whole industry in the province, it should strengthen cooperation with central enterprises, push forward the reorganization of the General Aircraft Company of Harbin Aircraft Industry (Group) Co., Ltd. and the cooperation with Harbin Electric Cooperation, China First Heavy Industries and China National Nuclear Corporation. Among A-share companies, Avicopter Plc (600038.SH) is the listing platform of the helicopter business of Harbin Aircraft Industry (Group) Co., Ltd.; Harbin Electric Corporation Jiamusi Electric Machine Co., Ltd. (000922.SZ) is subordinate to Harbin Electric Cooperation, and its nuclear power electrical machine business is expected to turn a profit this year.
[XFA Selection]
○ Zhoubo, deputy mayor of Shanghai, pointed out on Jan. 27 that the mixed ownership reform in Shanghai shall be mainly realized in the form of listed company.
○ The Ministry of Industry and Information Technology will hold the rare earth work conference on Jan. 28 to further specify the work direction of the “Thirteenth Five-Year Plan” and recent work.
○ The Ministry of Education takes the lead in establishing National Teenagers Campus Football Work Leading Group and will establish football talents development channel through admission access policies.
○ Wenzhou Minshang Bank, jointly established by Chint Group and Zhejiang Huafon Spandex Co., Ltd. (002064.SZ), held establishment conference on Jan. 27. Regulators temporarily cover it in the management sequence of city commercial banks.
○ Baidu (NASDAQ: BIDU) jointly launches CarLife solution with Audi Motors Co., (China) Ltd., Hyundai Motor Group (China) Ltd. and Shanghai General Motors Co., Ltd. to layout car networking area.
○ Regulators pay great attention to abnormal high share conversion and dividend and emphasize the system of checking insider trading behind every order.
[Industry Information]
○ Network security review methods to submit for deliberation, information security industry sees broad development space
------
XFA learns that China is going to launch network security review system. The draft of relevant methods has been finished, and is expected to be submitted to the Central Leading Group for Cyberspace Affairs for deliberation. Chinese President Xi jinping acts as the leader of the group and once proposed that “without network security, there will be no national security; without informatization, there will be no modernization”.
Comment: Since the occurrence of Prism Event, network security sees increasing attention paid by policies. Institutions are optimistic about the launch of following supporting policies and expect that the scale of the information security industry will reach 70 billion yuan this year. As for listed companies, Xiamen Meiya Pico Information Co., Ltd. (300188.SZ) is principally engaged in electronic data forensics products and is awarded as 2014 Science and Technology Award of the Ministry of Public Security; Beijing Vrv Software Corporation Limited (300352.SZ) is quite competitive in terminal safety management and data security products, and receives a commendatory letter from the Cyberspace Administration of China recently; Nsfocus Information Technology Co., Ltd. (300369.SZ) is a leading enterprise-level network security provider and also actively layouts domestic operation system.
○ Lithium battery enjoys tax exemption, lithium industry embraces both price and volume growth
------
The Ministry of Finance announced on Jan. 27 to cover battery into the levy scope of consumption tax with a tax rate at 4 percent. New energy batteries including lithium battery enjoy tax exemption. Furthermore, lithium carbonate sees consecutive increase in price this year recording a new-high in recent years with the rise reaching 15 percent. Relevant producers indicate that with relatively-low inventory and increasing demand at present, the price of lithium carbonate still sees potentiality of 15 percent more increase.
Comment: The exclusive tax exemption enjoyed by new energy batteries is of the same nature with the previous policy that new energy cars are not restricted for license application, and reflects the support to the industry. Based on the 83, 900 cars produced in last year, the output of new energy cars expects to be expanded to 200, 000 this year which will drive the demand of lithium carbonate and obviously change the supply-demand structure of lithium industry. As for listed companies, Luxiang Co., Ltd. (002192.SZ) is transforming itself into Li-ion equipment and lithium resource area; Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ) ranks top in domestic production of lithium carbonate and also actively merges overseas lithium mineral resources.
[Announcement Interpretation]
○ Huapengfei Modern Logistics to fully control Mobility & Motivation Systems to establish “Big Logistics” ecosphere
------
Shenzhen Huapengfei Modern Logistics Co., Ltd. (300350.SZ) proposes to acquire 100 percent equities of Mobility & Motivation Systems (Beijing) Co., Ltd. at 1.35 billion yuan by issuing shares at 20.02 yuan per share through placement and paying the consideration in cash. It also proposes to raise a supporting fund of 340 million yuan at the same issue price. Based on the performance commitment, the net profit of Mobility & Motivation Systems for 2014 to 2017 will be no less than 75 million yuan, 98 million yuan, 135 million yuan and 155 million yuan, respectively. Huapengfei Modern Logistics will provide enterprises with an integrated supply chain management services, including financing, purchasing, leasing, production and logistics, and improve the layout of the “Big Logistics” ecosphere of the company based on the platform of Mobility & Motivation Systems.
○ Silver Age Sci & Tech to develop 3D printing, actual controller to fully subscribe all shares issued through private placement
------
Guangdong Silver Age Sci & Tech Co., Ltd. (300221.SZ) proposes to issue 29.66 million shares at 12.81 yuan per share through private placement to Tan Songbin, the actual controller of the company, to raise 380 million yuan, of which 150 million yuan will be used in the CNC metal precision structures project, 40 million yuan used in the R&D center for the 3D printing industrialization and the remaining 190 million yuan for the repayment of debts and supplementing working capital.
○ China Meheco mulls acquisition through private placement, reform of central phar. enterprises makes another step
------
China Meheco Co., Ltd. (600056.SH) proposes to issue shares at 14.39 yuan per share through private placement to General Technology Group Pharmaceutical Holdings Co., Ltd., a company under its substantial shareholder, and Qianhai Kaiyuan as well as other social capitals. The latter will fully participate in the subscription in cash and the company will obtain 1.7 billion yuan for supplementing working capital. The company also indicated that it will consolidate and acquire appropriate pharmaceutical subjects based on its business expansion.
Comment: The company has become the only pharmaceutical industrial platform under the central enterprise China General Technology (Group) Holding Co., Ltd. after consolidating Henan Topfond Pharmaceutical Co., Ltd. China National Pharmaceutical Group Corporation, another central pharmaceutical enterprise, still owns various listed companies, including China National Medicines Corporation Ltd. (600511.SH), China National Accord Medicines Corporation Ltd. (000028.SZ), Shanghai Shyndec Pharmaceutical Co., Ltd. (600420.SH) and Beijing Tiantan Biological Products Corporation Limited (600161.SH). China National Pharmaceutical Group Corporation is one of the first six central enterprises conducted the mixed ownership system reform. It is said that its reform pilot plans have been prepared with huge expected reform potential.
○ Hand Enterprise Solution to acquire EPR service provider
------
Hand Enterprise Solution Co., Ltd. (300170.SZ) proposes to purchase 100 percent equities of Yangzhou Dimension Investment Management Co., Ltd. by issuing 4.5 million shares at 12.29 yuan per share through private placement and plans to acquire 55 percent equities of Shanghai Dimension Information Technology Co. Ltd. with 74 million yuan in cash, which are totally priced at 129 million yuan. Yangzhou Dimension holds 45 percent equities of Shanghai Dimension. Hand Enterprise Solution will hold 100 percent equities of Shanghai Dimension after the transaction. Shanghai Dimension is a leading ERP service provider in China and one of professional consultancy companies passed most SAP global certifications in China. The counterparty committed that the net profit of Shanghai Dimension in 2014 will be no less than 12 million yuan.
○ Fosun Phar. to develop hospital through mixed ownership system reform
------
Shanghai Yicheng Hospital Investment Management Co., Ltd., a wholly-owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (02196.HK; 600196.SH), and the First Hospital of Qiqihaer City proposes to jointly contribute to the establishment of the South Hospital of the First Hospital of Qiqihaer City, a profit making medical institute. Shanghai Yicheng will invest in cash and hold 53 equities of the new hospital. The new hospital is positioned to provide featured medical treatment and be a large specialist and small general hospital. It will be constructed according to the criteria of “Grade 3A hospitals”. In addition, both parties will contribute to establish a medical devices company with Shanghai Yicheng holding 51 percent equities.
Comment: Fosun Pharmaceutical considers this cooperation as an important move in exploring the development of hospitals by those with mixed ownership system in order to improve the regional layout of the company’s medical service business.
○ Qtone Education to acquire two online education companies
------
Guangdong Qtone Education Co., Ltd. (300359.SZ) proposes to buy 100 percent equities of Beijing Continuing Education Network Technology Co., Ltd. and Xi’an Thinkjoy Information Technology Co., Ltd. by issuing shares at 82.87 yuan per share to raise a supporting fund of 280 million yuan and paying the consideration in cash. The transactions are priced at 1.13 billion yuan in total, of which the 100 percent equities of Continuing Education Network is priced at 105 million yuan with an appreciation rate of 943 percent and the 100 percent equities of Xi’an Thinkjoy is temporarily priced at 80 million yuan with an appreciation rate of 1,854 percent.
The Continuing Education Network focuses on the technical services in the continuing education training and educational degree promotion for teachers in elementary education. Its net profit from 2015 to 2017 will be no less than 68 million yuan, 85 million yuan and 106 million yuan, respectively. Xi’an Thinkjoy is an Internet company professionally engaged in educational information services. Its net profit from 2015 to 2017 will be no less than 5.8 million yuan, 7.6 million yuan and 10.5 million yuan, respectively.
[Financial Reports Express]
○ Vie Science & Technology proposes high share conversion and dividend with significant performance growth
------
Zhejiang Vie Science & Technology Co., Ltd. (002590.SZ) recorded an increase of 70 to 120 percent year on year in its 2014 net profit. It proposes a dividend policy of 3 shares and 0.8 yuan for every 10 shares and a 7-for-10 conversion of capital surplus into shares to all shareholders.
○ CITIC Securities Company Limited (06030.HK; 600030.SH) and Sinolink Securities Co., Ltd. (600109.SH) issued their 2014 performance expresses with a year-on-year growth of 115 percent and 165 percent in their net profits.
[Trading Trends]
○ Four institutions buy Eastsoft Communication Technology
------
The trading volume ranking list on Jan. 27 shows that four institutes bought Qingdao Eastsoft Communication Technology Co., Ltd. (300183.SZ) with 74.82 million yuan in total, accounting for 18 percent of its intraday turnover.
Comment: Research institutes believe that as Eastsoft Communication Technology actively develops the smart home, its modems, smart power plugs, smart leakage protective devices, IPTV with the integration of three networks and other products will see output increases.
○ Most institutes bullish about A-share market
------
According to a latest survey on 119 domestic and overseas investment institutes conducted by the Asset Management Association of China, 89.1 percent of domestic institutes and 85.2 percent of QFII institutes are bullish about the A-share market in 2015. 75.0 percent of domestic institutes and 55.6 percent of QFII institutes expect that the index will surge by more than 10 percent in 2015.
> 20 provinces layout “One Belt and One Road” construction, Inner Mongolia and Shandong Province enter core area.
> Network security review methods to submit for deliberation, information security industry sees broad development space.
> Huapengfei Modern Logistics to fully control Mobility & Motivation Systems, actual controller of Silver Age Sci & Tech to fully subscribe all shares issued through private placement.
> China Meheco mulls acquisition through private placement, Hand Enterprise Solution to acquire EPR service provider.
[XFA Focus]
○ 20 provinces layout “One Belt and One Road” construction, Inner Mongolia and Shandong Province enter core area
------
After sorting out relevant information, XFA finds that there are already 20 provinces having incorporated the construction of the “One Belt and One Road” into their government work reports this year. It is learned that the core area of the “One Belt and One Road” initiative covers 16 provinces with Inner Mongolia and Shandong Province newly added into the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, respectively. Inner Mongolia is going to open up Qiaotoubao in the north, accelerate the construction of national key development and opening-up experimental areas in Manzhouli City and Erenhot City as well as the China- Mongolia-Russia Cooperation Leading Zone in Hulun Buir City, and push forward the infrastructure interconnection with Russia and Mongolia. Shandong Province positions the maritime strategic support of the “One Belt and One Road” initiative. It will deepen the construction of the East Asian maritime cooperation platform and the China-Korea regional economic cooperation, and try to get Qingdao City approved as pilot free trade zone.
Comment: Research institutions believe that the “One Belt and One Road” strategy will comprehensively enhance the opening-up level of China. Relevant inland and coastal ports will benefit from the growth of import/export trade volume, and industries like engineering construction, equipment manufacturing, etc. will also see benefits of the “going out”. Among A-share companies, Baotou Beifang Chuangye Co., Ltd. (600967.SH) is a leading enterprise in producing railway wagons and received lots of overseas orders before; Inner Mongolia North Hauler Joint Stock Co., Ltd. (600262.SH) aims to develop into a world first class tramcar manufacturer. The overseas income of the company accounts for more than 20 percent of its total revenue; Shandong Sunway Petrochemical Engineering Co., Ltd. (002469.SZ) is a leading domestic enterprise in petrochemical industry and coal chemical desulfurization. It won the bids of sulphur recycling recovery device projects in Thailand and Kazakhstan before; Shandong Molong Petroleum Machinery Co., Ltd. (002490.SZ; 00568.HK) is principally engaged in the design and manufacturing of petroleum drill and exploitation equipment with overseas income accounting for more than 30 percent.
◆ Heilongjiang Province promotes central enterprise reform
------
The government work report of Heilongjiang Province published on Jan. 27 proposes that considering that central enterprises account for more than 60 percent of the whole industry in the province, it should strengthen cooperation with central enterprises, push forward the reorganization of the General Aircraft Company of Harbin Aircraft Industry (Group) Co., Ltd. and the cooperation with Harbin Electric Cooperation, China First Heavy Industries and China National Nuclear Corporation. Among A-share companies, Avicopter Plc (600038.SH) is the listing platform of the helicopter business of Harbin Aircraft Industry (Group) Co., Ltd.; Harbin Electric Corporation Jiamusi Electric Machine Co., Ltd. (000922.SZ) is subordinate to Harbin Electric Cooperation, and its nuclear power electrical machine business is expected to turn a profit this year.
[XFA Selection]
○ Zhoubo, deputy mayor of Shanghai, pointed out on Jan. 27 that the mixed ownership reform in Shanghai shall be mainly realized in the form of listed company.
○ The Ministry of Industry and Information Technology will hold the rare earth work conference on Jan. 28 to further specify the work direction of the “Thirteenth Five-Year Plan” and recent work.
○ The Ministry of Education takes the lead in establishing National Teenagers Campus Football Work Leading Group and will establish football talents development channel through admission access policies.
○ Wenzhou Minshang Bank, jointly established by Chint Group and Zhejiang Huafon Spandex Co., Ltd. (002064.SZ), held establishment conference on Jan. 27. Regulators temporarily cover it in the management sequence of city commercial banks.
○ Baidu (NASDAQ: BIDU) jointly launches CarLife solution with Audi Motors Co., (China) Ltd., Hyundai Motor Group (China) Ltd. and Shanghai General Motors Co., Ltd. to layout car networking area.
○ Regulators pay great attention to abnormal high share conversion and dividend and emphasize the system of checking insider trading behind every order.
[Industry Information]
○ Network security review methods to submit for deliberation, information security industry sees broad development space
------
XFA learns that China is going to launch network security review system. The draft of relevant methods has been finished, and is expected to be submitted to the Central Leading Group for Cyberspace Affairs for deliberation. Chinese President Xi jinping acts as the leader of the group and once proposed that “without network security, there will be no national security; without informatization, there will be no modernization”.
Comment: Since the occurrence of Prism Event, network security sees increasing attention paid by policies. Institutions are optimistic about the launch of following supporting policies and expect that the scale of the information security industry will reach 70 billion yuan this year. As for listed companies, Xiamen Meiya Pico Information Co., Ltd. (300188.SZ) is principally engaged in electronic data forensics products and is awarded as 2014 Science and Technology Award of the Ministry of Public Security; Beijing Vrv Software Corporation Limited (300352.SZ) is quite competitive in terminal safety management and data security products, and receives a commendatory letter from the Cyberspace Administration of China recently; Nsfocus Information Technology Co., Ltd. (300369.SZ) is a leading enterprise-level network security provider and also actively layouts domestic operation system.
○ Lithium battery enjoys tax exemption, lithium industry embraces both price and volume growth
------
The Ministry of Finance announced on Jan. 27 to cover battery into the levy scope of consumption tax with a tax rate at 4 percent. New energy batteries including lithium battery enjoy tax exemption. Furthermore, lithium carbonate sees consecutive increase in price this year recording a new-high in recent years with the rise reaching 15 percent. Relevant producers indicate that with relatively-low inventory and increasing demand at present, the price of lithium carbonate still sees potentiality of 15 percent more increase.
Comment: The exclusive tax exemption enjoyed by new energy batteries is of the same nature with the previous policy that new energy cars are not restricted for license application, and reflects the support to the industry. Based on the 83, 900 cars produced in last year, the output of new energy cars expects to be expanded to 200, 000 this year which will drive the demand of lithium carbonate and obviously change the supply-demand structure of lithium industry. As for listed companies, Luxiang Co., Ltd. (002192.SZ) is transforming itself into Li-ion equipment and lithium resource area; Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ) ranks top in domestic production of lithium carbonate and also actively merges overseas lithium mineral resources.
[Announcement Interpretation]
○ Huapengfei Modern Logistics to fully control Mobility & Motivation Systems to establish “Big Logistics” ecosphere
------
Shenzhen Huapengfei Modern Logistics Co., Ltd. (300350.SZ) proposes to acquire 100 percent equities of Mobility & Motivation Systems (Beijing) Co., Ltd. at 1.35 billion yuan by issuing shares at 20.02 yuan per share through placement and paying the consideration in cash. It also proposes to raise a supporting fund of 340 million yuan at the same issue price. Based on the performance commitment, the net profit of Mobility & Motivation Systems for 2014 to 2017 will be no less than 75 million yuan, 98 million yuan, 135 million yuan and 155 million yuan, respectively. Huapengfei Modern Logistics will provide enterprises with an integrated supply chain management services, including financing, purchasing, leasing, production and logistics, and improve the layout of the “Big Logistics” ecosphere of the company based on the platform of Mobility & Motivation Systems.
○ Silver Age Sci & Tech to develop 3D printing, actual controller to fully subscribe all shares issued through private placement
------
Guangdong Silver Age Sci & Tech Co., Ltd. (300221.SZ) proposes to issue 29.66 million shares at 12.81 yuan per share through private placement to Tan Songbin, the actual controller of the company, to raise 380 million yuan, of which 150 million yuan will be used in the CNC metal precision structures project, 40 million yuan used in the R&D center for the 3D printing industrialization and the remaining 190 million yuan for the repayment of debts and supplementing working capital.
○ China Meheco mulls acquisition through private placement, reform of central phar. enterprises makes another step
------
China Meheco Co., Ltd. (600056.SH) proposes to issue shares at 14.39 yuan per share through private placement to General Technology Group Pharmaceutical Holdings Co., Ltd., a company under its substantial shareholder, and Qianhai Kaiyuan as well as other social capitals. The latter will fully participate in the subscription in cash and the company will obtain 1.7 billion yuan for supplementing working capital. The company also indicated that it will consolidate and acquire appropriate pharmaceutical subjects based on its business expansion.
Comment: The company has become the only pharmaceutical industrial platform under the central enterprise China General Technology (Group) Holding Co., Ltd. after consolidating Henan Topfond Pharmaceutical Co., Ltd. China National Pharmaceutical Group Corporation, another central pharmaceutical enterprise, still owns various listed companies, including China National Medicines Corporation Ltd. (600511.SH), China National Accord Medicines Corporation Ltd. (000028.SZ), Shanghai Shyndec Pharmaceutical Co., Ltd. (600420.SH) and Beijing Tiantan Biological Products Corporation Limited (600161.SH). China National Pharmaceutical Group Corporation is one of the first six central enterprises conducted the mixed ownership system reform. It is said that its reform pilot plans have been prepared with huge expected reform potential.
○ Hand Enterprise Solution to acquire EPR service provider
------
Hand Enterprise Solution Co., Ltd. (300170.SZ) proposes to purchase 100 percent equities of Yangzhou Dimension Investment Management Co., Ltd. by issuing 4.5 million shares at 12.29 yuan per share through private placement and plans to acquire 55 percent equities of Shanghai Dimension Information Technology Co. Ltd. with 74 million yuan in cash, which are totally priced at 129 million yuan. Yangzhou Dimension holds 45 percent equities of Shanghai Dimension. Hand Enterprise Solution will hold 100 percent equities of Shanghai Dimension after the transaction. Shanghai Dimension is a leading ERP service provider in China and one of professional consultancy companies passed most SAP global certifications in China. The counterparty committed that the net profit of Shanghai Dimension in 2014 will be no less than 12 million yuan.
○ Fosun Phar. to develop hospital through mixed ownership system reform
------
Shanghai Yicheng Hospital Investment Management Co., Ltd., a wholly-owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. (02196.HK; 600196.SH), and the First Hospital of Qiqihaer City proposes to jointly contribute to the establishment of the South Hospital of the First Hospital of Qiqihaer City, a profit making medical institute. Shanghai Yicheng will invest in cash and hold 53 equities of the new hospital. The new hospital is positioned to provide featured medical treatment and be a large specialist and small general hospital. It will be constructed according to the criteria of “Grade 3A hospitals”. In addition, both parties will contribute to establish a medical devices company with Shanghai Yicheng holding 51 percent equities.
Comment: Fosun Pharmaceutical considers this cooperation as an important move in exploring the development of hospitals by those with mixed ownership system in order to improve the regional layout of the company’s medical service business.
○ Qtone Education to acquire two online education companies
------
Guangdong Qtone Education Co., Ltd. (300359.SZ) proposes to buy 100 percent equities of Beijing Continuing Education Network Technology Co., Ltd. and Xi’an Thinkjoy Information Technology Co., Ltd. by issuing shares at 82.87 yuan per share to raise a supporting fund of 280 million yuan and paying the consideration in cash. The transactions are priced at 1.13 billion yuan in total, of which the 100 percent equities of Continuing Education Network is priced at 105 million yuan with an appreciation rate of 943 percent and the 100 percent equities of Xi’an Thinkjoy is temporarily priced at 80 million yuan with an appreciation rate of 1,854 percent.
The Continuing Education Network focuses on the technical services in the continuing education training and educational degree promotion for teachers in elementary education. Its net profit from 2015 to 2017 will be no less than 68 million yuan, 85 million yuan and 106 million yuan, respectively. Xi’an Thinkjoy is an Internet company professionally engaged in educational information services. Its net profit from 2015 to 2017 will be no less than 5.8 million yuan, 7.6 million yuan and 10.5 million yuan, respectively.
[Financial Reports Express]
○ Vie Science & Technology proposes high share conversion and dividend with significant performance growth
------
Zhejiang Vie Science & Technology Co., Ltd. (002590.SZ) recorded an increase of 70 to 120 percent year on year in its 2014 net profit. It proposes a dividend policy of 3 shares and 0.8 yuan for every 10 shares and a 7-for-10 conversion of capital surplus into shares to all shareholders.
○ CITIC Securities Company Limited (06030.HK; 600030.SH) and Sinolink Securities Co., Ltd. (600109.SH) issued their 2014 performance expresses with a year-on-year growth of 115 percent and 165 percent in their net profits.
[Trading Trends]
○ Four institutions buy Eastsoft Communication Technology
------
The trading volume ranking list on Jan. 27 shows that four institutes bought Qingdao Eastsoft Communication Technology Co., Ltd. (300183.SZ) with 74.82 million yuan in total, accounting for 18 percent of its intraday turnover.
Comment: Research institutes believe that as Eastsoft Communication Technology actively develops the smart home, its modems, smart power plugs, smart leakage protective devices, IPTV with the integration of three networks and other products will see output increases.
○ Most institutes bullish about A-share market
------
According to a latest survey on 119 domestic and overseas investment institutes conducted by the Asset Management Association of China, 89.1 percent of domestic institutes and 85.2 percent of QFII institutes are bullish about the A-share market in 2015. 75.0 percent of domestic institutes and 55.6 percent of QFII institutes expect that the index will surge by more than 10 percent in 2015.
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