[Today’s Guide]
> Factors to drive stock market hike after Spring Festival; reform and other two sessions topics to highlight
> Samsung to acquire power battery supplier, industry significantly booms
> Stereographic projection debuts Spring Festival gala, Snowden discloses SIM cards dangers
> Porton Fine Chemicals to fully control Dongbang Phar., substantial shares of Jiangsu Shagang to transfer
[XFA Focus]
○ Factors to drive stock market hike after Spring Festival; reform and other two sessions topics to highlight
------
XFA made a research on various mainstream securities companies at the beginning of the year of sheep. They generally believe that despite the short-term downward pressure on real economies exceeding the expectation, a liquid bull market driven by OTC capitals will continue the trend under the backdrop of expected further loosening monetary policies, continuous allocation and transfer of residents’ major assets as well as frequent easing measures in other economies.
◆ Statistics show that the “red envelope market” will continue after the Spring Festival. The possibilities of obtaining positive gains during the ten trading days before and after the Spring Festival since 1996 are 84 percent and 79 percent with an average yield rate of 3 percent and 2.1 percent, respectively.
◆ The two sessions will be convened soon and the market will shift its focus onto the “deep water zone” reform. Key topics, including the economic growth target of this year, the implementation of the “One Belt and One Road” program and state-owned assets reform as well as the promotion path and pace of the IPO registration system, will be focuses in the future. Many institutes are firmly rosy about the theme of state-owned assets reform, believing that it is the most noteworthy investment opportunity in the first half of 2015.
◆ Based on the field research of XFA, Hainan Province is mulling the “Opinions on the Implementation of Overall Deepening State-owned Assets and Enterprises Reform”. It will introduce specific measures to boost local state-owned tourism and infrastructure listed companies, such as seeking cooperation with central enterprises with local advantageous resources and facilitating the transformation and upgrading of local state-owned assets with projects as the core.
[XFA Selection]
○ The website of the CPC Central Commission for Discipline Inspection (CCDI) continued updating during the Spring Festival holidays and issued an article against the argument that anti-graft is just “a blow of wind”.
○ The Shanghai-Hong Kong Stock Connect is set to allow short-selling from March 2. The quantity restriction will be stricter than the A-share short-selling.
○ The National Development and Reform Commission (NDRC) will accelerate the pricing reform and implement the tiered pricing for water and gas on the whole this year.
○ 1.25 billion red envelopes were distributed and collected on the platforms of Tencent Holdings Limited (00700.HK) and Alibaba Group Holding Limited (BABA.NYSE) on the Chinese New Year’s Eve. Massive enterprises conducted digital marketing.
○ The three major U.S. stock indexes, namely the Dow Jones, Nasdaq and S&P500, hit a new high during the Spring Festival holidays. Apple Inc. (AAPL.NASDAQ; ACP.LSE) and other technology stocks saw highest growth.
○ Warren Buffett’s Berkshire Hathaway (BRKA.NYSE; BRKB.NYSE) will acquire a German motorcycle accessories retailer at 400 million euros. It dumped the stocks of oil enterprises in the fourth quarter of last year.
[Industry Information]
○ Samsung to acquire power battery supplier, industry significantly booms
------
Samsung SDI under Samsung Group recently announced that it has agreed to buy the battery pack business of Canadian car parts maker Magna International, which will strengthen Samsung’s capacity in batteries for power vehicles. XFA also learnt that various domestic power battery enterprises have received sufficient orders. Shenzhen Capchem Technology Co., Ltd. (300037.SZ), Guangzhou Tinci Materials Technology Co., Ltd. (002709.SZ) and other raw materials suppliers see an increasing shipment. It has become a new normal in the upstream and downstream industrial chain to expand production with full capacity and work overtime.
Comment: Since the second half of last year, many policies and measures on the new energy vehicles at the state level have been introduced with an unprecedented supporting. The production and sale also saw an explosive growth. It means that the new energy vehicles with policy supporting entered a period of sustainable development. As the core part of the new energy vehicles, power batteries will directly benefit and the industry will see more demands than supplies.
◆ The trading volume ranking list on Feb. 17 shows that three institutes bought Jiangsu Dongyuan Electrical Group Co., Ltd. (002074.SZ), which transformed into a lithium-ion power batteries enterprise, with a total of 79.47 million yuan within three trading days. Three institutes bought Guangdong East Power Co., Ltd. (300376.SZ), which is engaged in the charging piles business, with a total of 54.87 million yuan. Two institutes bought Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ), which is engaged in lithium ore resources, with a total of 42.08 million yuan.
○ Hi-tech assists Spring Festival gala, stereographic projection market to burst out
------
The “Embroidery” highlighted the Spring Festival gala for the year of sheep with the highest technology and cost. The gala crew “reproduced” four Li Yuchun, the performer of the program, with the three dimensional stereographic projection, perfectly displaying the charm of the Chinese embroidery art.
Comment: Compared with the traditional planar projection, the three dimensional stereographic projection can better join the virtuality and reality with a higher efficiency in information transmission. It is increasingly applied in more and more museums and concerts with a huge market potential. Some smartphone manufacturers also intend to apply the technology. Among A-share companies, Tianma Microelectronics Co., Ltd. (000050.SZ) provides 3D displays to Takee mobilephones. Guangdong Golden Glass Technologies Limited (300093.SZ) acquired Nanjing Hanen Digital Connectivity Culture Co., Ltd., which is principally engaged in the holographic multimedia display. Wisesoft Co., Ltd. (002253.SZ) owns various patents in the stereographic projection.
○ Snowden releases U.S. and British scandals, SIM cards become new battle for information security
------
The U.S. and British spy agencies hacked into the Netherlands-based Gemalto, the world’s largest SIM card manufacturer, monitoring mobile communications and data information, according to documents released by whistle-blower Edward Snowden. Gemalto produces some 2 billion SIM cards a year and cooperated with three major telecommunication operators in China, namely China Mobile Limited (CHL.NYSE; 00941.HK), China United Network Communications Limited (600050.SH) and China Telecom Corporation Limited (CHA.NYSE; 00728.HK). Gemalto will hold a press release and publish the investigation results on Feb. 25.
Comment: As an integral part of the national security strategy, the information security continuously catches the attention of the capital market. Snowden’s disclosure expanded the battle for information security to the SIM card industry. Domestic SIM cards manufacturers, including HengBao Co., Ltd. (002104.SZ), Eastcompeace Technology Co., Ltd. (002017.SZ) and Wuhan Tianyu Information Industry Co., Ltd. (300205.SZ) are expected to see more development potentials.
[Announcement Interpretation]
○ Porton Fine Chemicals to fully control Dongbang Phar. to expand customized development of pharmaceuticals
------
Porton Fine Chemicals Ltd. (300363.SZ) proposes to acquire 100 percent equities of Jiangxi Dongbang Pharmaceutical Co., Ltd. through issuing shares and in cash. The subject is priced at 260 million yuan, of which, 160 million yuan will be paid by issuing 2.72 million shares to the counterparty at 58.82 yuan per share and 100 million yuan will be paid in cash. Meanwhile, the company intends to raise a supporting fund of 65 million yuan for the payment of the cash consideration. Dongbang Phar. recorded a net profit of 10.07 million yuan and 9.62 million yuan in 2013 and 2014, respectively.
Comment: Dongbang Phar. serves as a long-term supplier of Porton Fine Chemicals for customized raw materials. It will become the subject of Porton Fine Chemicals for the customized development of its non-GMP intermediates after the transaction.
○ Substantial shares of Jiangsu Shagang to transfer to nine natural persons
------
Shagang Group, the controlling shareholder of Jiangsu Shagang Co., Ltd. (002075.SZ), will transfer 869 million shares of the listed company to nine natural persons with a total price of 4,596 million yuan. The shareholding of Shagang Group will decrease from 75 percent to 19.88 percent and remain the controlling shareholder, but it may continue to decrease its shareholding in the company. The stock of Jiangsu Shagang closed at 6.35 yuan before trading suspension.
Comment: The nine transferees are rosy about the prospects of Jiangsu Shagang. They expect to record investment revenues and may continue to increase their shareholdings. Among them, Liu Zhenguang, one of the actual controllers of Shanghai Lonyer Fuels Co., Ltd. (603003.SH), plans to accept 110 million shares. Li Feiwen, a director of Anhui Xinke New Materials Co., Ltd. (600255.SH) and Jin Jie, the board secretary of Zhonghong Holding Co., Ltd. (000979.SZ), will accept 113 million and 80 million shares of Jiangsu Shagang, respectively.
> Factors to drive stock market hike after Spring Festival; reform and other two sessions topics to highlight
> Samsung to acquire power battery supplier, industry significantly booms
> Stereographic projection debuts Spring Festival gala, Snowden discloses SIM cards dangers
> Porton Fine Chemicals to fully control Dongbang Phar., substantial shares of Jiangsu Shagang to transfer
[XFA Focus]
○ Factors to drive stock market hike after Spring Festival; reform and other two sessions topics to highlight
------
XFA made a research on various mainstream securities companies at the beginning of the year of sheep. They generally believe that despite the short-term downward pressure on real economies exceeding the expectation, a liquid bull market driven by OTC capitals will continue the trend under the backdrop of expected further loosening monetary policies, continuous allocation and transfer of residents’ major assets as well as frequent easing measures in other economies.
◆ Statistics show that the “red envelope market” will continue after the Spring Festival. The possibilities of obtaining positive gains during the ten trading days before and after the Spring Festival since 1996 are 84 percent and 79 percent with an average yield rate of 3 percent and 2.1 percent, respectively.
◆ The two sessions will be convened soon and the market will shift its focus onto the “deep water zone” reform. Key topics, including the economic growth target of this year, the implementation of the “One Belt and One Road” program and state-owned assets reform as well as the promotion path and pace of the IPO registration system, will be focuses in the future. Many institutes are firmly rosy about the theme of state-owned assets reform, believing that it is the most noteworthy investment opportunity in the first half of 2015.
◆ Based on the field research of XFA, Hainan Province is mulling the “Opinions on the Implementation of Overall Deepening State-owned Assets and Enterprises Reform”. It will introduce specific measures to boost local state-owned tourism and infrastructure listed companies, such as seeking cooperation with central enterprises with local advantageous resources and facilitating the transformation and upgrading of local state-owned assets with projects as the core.
[XFA Selection]
○ The website of the CPC Central Commission for Discipline Inspection (CCDI) continued updating during the Spring Festival holidays and issued an article against the argument that anti-graft is just “a blow of wind”.
○ The Shanghai-Hong Kong Stock Connect is set to allow short-selling from March 2. The quantity restriction will be stricter than the A-share short-selling.
○ The National Development and Reform Commission (NDRC) will accelerate the pricing reform and implement the tiered pricing for water and gas on the whole this year.
○ 1.25 billion red envelopes were distributed and collected on the platforms of Tencent Holdings Limited (00700.HK) and Alibaba Group Holding Limited (BABA.NYSE) on the Chinese New Year’s Eve. Massive enterprises conducted digital marketing.
○ The three major U.S. stock indexes, namely the Dow Jones, Nasdaq and S&P500, hit a new high during the Spring Festival holidays. Apple Inc. (AAPL.NASDAQ; ACP.LSE) and other technology stocks saw highest growth.
○ Warren Buffett’s Berkshire Hathaway (BRKA.NYSE; BRKB.NYSE) will acquire a German motorcycle accessories retailer at 400 million euros. It dumped the stocks of oil enterprises in the fourth quarter of last year.
[Industry Information]
○ Samsung to acquire power battery supplier, industry significantly booms
------
Samsung SDI under Samsung Group recently announced that it has agreed to buy the battery pack business of Canadian car parts maker Magna International, which will strengthen Samsung’s capacity in batteries for power vehicles. XFA also learnt that various domestic power battery enterprises have received sufficient orders. Shenzhen Capchem Technology Co., Ltd. (300037.SZ), Guangzhou Tinci Materials Technology Co., Ltd. (002709.SZ) and other raw materials suppliers see an increasing shipment. It has become a new normal in the upstream and downstream industrial chain to expand production with full capacity and work overtime.
Comment: Since the second half of last year, many policies and measures on the new energy vehicles at the state level have been introduced with an unprecedented supporting. The production and sale also saw an explosive growth. It means that the new energy vehicles with policy supporting entered a period of sustainable development. As the core part of the new energy vehicles, power batteries will directly benefit and the industry will see more demands than supplies.
◆ The trading volume ranking list on Feb. 17 shows that three institutes bought Jiangsu Dongyuan Electrical Group Co., Ltd. (002074.SZ), which transformed into a lithium-ion power batteries enterprise, with a total of 79.47 million yuan within three trading days. Three institutes bought Guangdong East Power Co., Ltd. (300376.SZ), which is engaged in the charging piles business, with a total of 54.87 million yuan. Two institutes bought Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ), which is engaged in lithium ore resources, with a total of 42.08 million yuan.
○ Hi-tech assists Spring Festival gala, stereographic projection market to burst out
------
The “Embroidery” highlighted the Spring Festival gala for the year of sheep with the highest technology and cost. The gala crew “reproduced” four Li Yuchun, the performer of the program, with the three dimensional stereographic projection, perfectly displaying the charm of the Chinese embroidery art.
Comment: Compared with the traditional planar projection, the three dimensional stereographic projection can better join the virtuality and reality with a higher efficiency in information transmission. It is increasingly applied in more and more museums and concerts with a huge market potential. Some smartphone manufacturers also intend to apply the technology. Among A-share companies, Tianma Microelectronics Co., Ltd. (000050.SZ) provides 3D displays to Takee mobilephones. Guangdong Golden Glass Technologies Limited (300093.SZ) acquired Nanjing Hanen Digital Connectivity Culture Co., Ltd., which is principally engaged in the holographic multimedia display. Wisesoft Co., Ltd. (002253.SZ) owns various patents in the stereographic projection.
○ Snowden releases U.S. and British scandals, SIM cards become new battle for information security
------
The U.S. and British spy agencies hacked into the Netherlands-based Gemalto, the world’s largest SIM card manufacturer, monitoring mobile communications and data information, according to documents released by whistle-blower Edward Snowden. Gemalto produces some 2 billion SIM cards a year and cooperated with three major telecommunication operators in China, namely China Mobile Limited (CHL.NYSE; 00941.HK), China United Network Communications Limited (600050.SH) and China Telecom Corporation Limited (CHA.NYSE; 00728.HK). Gemalto will hold a press release and publish the investigation results on Feb. 25.
Comment: As an integral part of the national security strategy, the information security continuously catches the attention of the capital market. Snowden’s disclosure expanded the battle for information security to the SIM card industry. Domestic SIM cards manufacturers, including HengBao Co., Ltd. (002104.SZ), Eastcompeace Technology Co., Ltd. (002017.SZ) and Wuhan Tianyu Information Industry Co., Ltd. (300205.SZ) are expected to see more development potentials.
[Announcement Interpretation]
○ Porton Fine Chemicals to fully control Dongbang Phar. to expand customized development of pharmaceuticals
------
Porton Fine Chemicals Ltd. (300363.SZ) proposes to acquire 100 percent equities of Jiangxi Dongbang Pharmaceutical Co., Ltd. through issuing shares and in cash. The subject is priced at 260 million yuan, of which, 160 million yuan will be paid by issuing 2.72 million shares to the counterparty at 58.82 yuan per share and 100 million yuan will be paid in cash. Meanwhile, the company intends to raise a supporting fund of 65 million yuan for the payment of the cash consideration. Dongbang Phar. recorded a net profit of 10.07 million yuan and 9.62 million yuan in 2013 and 2014, respectively.
Comment: Dongbang Phar. serves as a long-term supplier of Porton Fine Chemicals for customized raw materials. It will become the subject of Porton Fine Chemicals for the customized development of its non-GMP intermediates after the transaction.
○ Substantial shares of Jiangsu Shagang to transfer to nine natural persons
------
Shagang Group, the controlling shareholder of Jiangsu Shagang Co., Ltd. (002075.SZ), will transfer 869 million shares of the listed company to nine natural persons with a total price of 4,596 million yuan. The shareholding of Shagang Group will decrease from 75 percent to 19.88 percent and remain the controlling shareholder, but it may continue to decrease its shareholding in the company. The stock of Jiangsu Shagang closed at 6.35 yuan before trading suspension.
Comment: The nine transferees are rosy about the prospects of Jiangsu Shagang. They expect to record investment revenues and may continue to increase their shareholdings. Among them, Liu Zhenguang, one of the actual controllers of Shanghai Lonyer Fuels Co., Ltd. (603003.SH), plans to accept 110 million shares. Li Feiwen, a director of Anhui Xinke New Materials Co., Ltd. (600255.SH) and Jin Jie, the board secretary of Zhonghong Holding Co., Ltd. (000979.SZ), will accept 113 million and 80 million shares of Jiangsu Shagang, respectively.
Latest comments