[Today's Guide]
> First round of CSL sets new records, football industry enters positive cycle
> Agrochemical industry exhibition to convene, glyphosate enterprises consider increasing prices
> PV poverty alleviation might stimulate installed capacity, Shanghai Electric Group plans overall listing
> GRG Banking Equipment to invest in financial outsourcing platform, CECEP Wind-power to develop wind power
[XFA Focus]
○ First round of CSL sets new records, football industry enters positive cycle
------
The just-concluded first round of the Chinese Football Association Super League (CSL) in 2015 sets several new records: 8 games totally scored 27 goals, far larger than the 13 goals scored in the first of round of last year; the audience reached 230,000, which is also an all-time high in the matches of Chinese soccer professional league.
Comment: This is a natural response to the increased investment in Chinese football. With six football teams invested more than 500 million yuan, this session of CSL is called the “most expensive in history”. Intense competition leads to more goals and more exciting games and attracts more football funs to watch matches. The income of football clubs and events operation will surge and the whole football industry might enter a positive cycle. Shanghai International Port (Group) Co., Ltd. (600018.SH) fully controls SIPG Football Club and the senior management of the company recently indicates their optimism towards the potential profit of football industry; Greenland Group, which is seeking for back-door listing via Shanghai Jinfeng Investment Co., Ltd. (600606.SH), acquires shares of Shanghai Shenhua Football Club; Ledman Optoelectronic Co., Ltd. (300162.SZ) joins hands with NEO Capital Management (Group) Co., Ltd. and held the signing ceremony on sponsoring football clubs of Chinese First League on March 10.
[XFA Selection]
○ Yin Weimin, Minister of Human Resources and Social Security, indicated on March 10 that basic scheme concerning the investment and operation of endowment insurance funds has been formulated with restrictions on investment proportion in stock market.
○ The money-making effect of A-share market before and after the Spring Festival is attracting more OTC capitals to enter the stock market. The number of newly opened stock accounts in last week recorded a five-year new high.
○ China General Nuclear Power Group (CGN) announced on March 10 that two units of Hongyanhe Nuclear Power Station were approved. This is the real newly approved nuclear power project in China in recent years.
○PE investment favors mobile Internet industry in Feb. O2O market with online booking and offline service is most popular among investors.
○ The Mirror reported on March 10 that the investigation of 3.15 Evening by CCTV (consumer rights protection evening) this year will focus on Internet, traditional service area and goods for everyday consumption.
[Industry Information]
○ Agrochemical industry exhibition to convene, glyphosate enterprises consider increasing prices
------
The 16th China International Agrochemical Exhibition will be convened on March 11. XFA learns that domestic glyphosate enterprises consider increasing prices by around 5 percent together during the exhibition.
Comment: Multi-factors result in the tendency of price surge of glyphosate: for environmental protection, the newly appointed minister of environmental protection indicated recently that the strictest-ever environmental protection law shall become a sharp sword in pollution regulation. It will limit the expansion of glyphosate capacity and quicken the pace of industrial integration. For seasonal factor, the price of glyphosate sees an average surge of 5~10 percent in March in recent five years. Moreover, industrial inventory is relatively low. Glyphosate producers in A-share market include Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. (600389.SH), Zhejiang Xinan Chemical Industrial Group Co., Ltd. (600596.SH) and Sichuan Hebang Corporation Limited (603077.SH)
○ NEA promotes PV poverty alleviation, installed PV capacity might climb
------
The National Energy Administration (NEA) recently distributed the “Guideline of Pilot Implementation Scheme on PV Poverty Alleviation (revised draft)”. In terms of supporting measures, referenced policies proposed by the guideline are that local governments offer household and agriculture-facilities-based PV poverty alleviation projects with 35 percent initial investment subsidies; offer large-scale ground photovoltaic power stations with 20 percent initial investment subsidies; the State allocates initial investment subsidies with equal proportion.
Comment: In terms of policy measures, distributed photovoltaic systems including household and agricultural greenhouses, etc. gain the most initial assembly subsidies; as a result, it might stimulate the growth of photovoltaic capacity. Among A-share companies, Risen Energy Co., Ltd. (300118.SZ) and EGing Photovoltaic Technology Co., Ltd. (600537.SH) have invested in the construction of photovoltaic agricultural greenhouse integration projects.
[Companies Hotspot]
○ Shanghai Electric Group plans overall listing within two or three years
------
Huang Dinan, Chairman of the board of Shanghai Electric Group, told XFA on March 10 that the Group aims to achieve overall listing within two or three years and principally, all assets will be listed. In the future, all assets of the Group will be integrated, including part of the assets of the five listed companies under the Group, and injected to Shanghai Electric Group Company Limited (601727.SH; 02727.HK), which will act as the main body of overall listing.
[Announcement Interpretation]
○ GRG Banking Equipment to invest RMB3.7 bln in financial outsourcing platform, substantial shareholder and employees to fully subscribe
------
GRG Banking Equipment Co., Ltd. (002152.SZ) intends to issue 210 million shares at 17.76 yuan per share through private placement. Guangzhou Radio Group, its controlling shareholder, plans to subscribe 160 million shares and its employee shareholding plan proposes to subscribe 50 million shares. It will raise 3.73 billion yuan in total, of which 1.96 billion yuan will be used in the establishment of a nationwide financial outsourcing services platform and 1.77 billion yuan will supplement the working capital. The company indicated that the non-public issuing is a major step in the new round state-owned enterprises reform in Guangzhou City through the capital market.
○ CECEP Wind-power to raise RMB3 bln to develop wind power
------
CECEP Wind-power Corporation (601016.SH) plans to raise 3 billion yuan by issuing 315 million shares at no less than 9.51 yuan per share through private placement, of which 2.1 billion yuan will be invested in four wind power projects, including a project with 200,000 kilowatts in Dabancheng District in Urumuqi City. The remaining 900 million yuan will be used to pay off bank loans. The company will be equipped with another 550,000 kilowatts wind power installed capacity after the establishment of the projects. The latest stock price of the company was 10.7 yuan per share.
Comment: It is pointed out in the “Energy Development Strategy Action Plan (2014-2020)” issued by the State Council that China will vigorously development wind power and other clean energy. The wind power installed capacity is planned to reach 200 million kilowatts in 2020.
○ Jasan Holding to establish O2O platform project company with RMB100 mln
------
Zhejiang Jasan Holding Group Co., Ltd. (603558.SH), newly listed in January this year, will invest 100 million yuan in establishing a company as the subject for the establishment of the company’s O2O platform on its own. The platform will gather multi-brand products, including socks, underwear, pants, leisure wear and other close clothes, through its service brand “Jasan’s Home”. It will be a platform for the sale multi-brand and multi-category Kintwear both online and offline.
○ Souyute Fashion to invest in Huimei Fashion, Huimei Fashion to initiate IPO
------
Dongguan Souyute Fashion Co., Ltd. (002503.SZ) will strategically buy the shares Guangzhou Huimei Fashion Co., Ltd. with 324 million yuan of its own capitals and will hold 25.2 percent of its registered capitals. Huimei Fashion is a leader in the multi-brand Internet fashion and clothing industry with two brand groups, namely “Inman” and “To/Youth”. The total sales of the brands under Huimei Fashion ranked high in the women’s dress on tmall.com, vip.com, JD.com, dangdang.com and other large e-business platforms in 2014. Huimei Fashion recorded a net profit of 20.02 million yuan, 34.13 million yuan and 38.91 million yuan, respectively, from 2012 to 2014. It plans to submit its listing application on the A-share market to the China Securities Regulatory Commission by Dec. 31, 2015.
○ Sungrow Power to invest RMB100 mln in establishing new energy vehicle company
------
Sungrow Power Supply Co., Ltd. (300274.SZ) proposes to invest 100 million yuan in the establishment of Sungrow Power Energy Technology Co., Ltd., a wholly-owned subsidiary, with its own capitals. The new company will be principally engaged in the research and development and production of electric drivers and solar energy charging stations for new energy vehicles.
Comment: The business of the new company will have a synergistic effect with the existing businesses of Sungrow Power, including the photovoltaic inverter, wind energy convertor, energy storage and photovoltaic power stations. The company will speed up in the strategic development in the new energy industry.
[Trading Trends]
○ Five institutions buy Rainbow Fine Chemical
------
The trading volume ranking list on March 10 shows that five institutes totally bought Shenzhen Rainbow Fine Chemical Industry Co., Ltd. (002256.SZ) with 136 million yuan, accounting for 18 percent of its intraday turnover.
Comment: Rainbow Fine Chemical announced that it would raise 2.06 billion yuan through private placement to invest in the photovoltaic power station. Analysts believe that the National Energy Administration has proposed to increase supports to the photovoltaic industry at the beginning of the year. The profitability of the industry has been improving in recent years. The photovoltaic power station and air purification business is likely to beat the market expectation.
[Trade Alarms]
○ Ten new shares for subscription on March 11, including Orient Securities
------
Orient Securities Co., Ltd. (730958.SH) issues shares at 10.03 yuan per share with an upper subscription limit of 300,000 shares for each account. Shanghai LongYun Advertising & Media Co., Ltd. (732729.SH) issues shares at 26.61 yuan per share with an upper subscription limit of 6,000 shares for each account. Jiangsu Liba Enterprise Joint-Stock Co., Ltd. (732519.SH) issues shares at 13.69 yuan per share with an upper subscription limit of 8,000 shares for each account. Guangdong Songfa Ceramics Co., Ltd. (732268.SH) issues shares at 11.66 yuan per share with an upper subscription limit of 8,000 shares for each account. Ningbo Tuopu Group Co., Ltd. (780689.SH) issues shares at 11.37 yuan per share with an upper subscription limit of 38,000 shares for each account. Mianyang Fulin Precision Machining Co., Ltd. (300432.SZ) issues shares at 13.97 yuan per share with an upper subscription limit of 12,000 shares for each account. Beijing Chieftain Control Engineering Technology Co., Ltd. (300430.SZ) issues shares at 18.91 yuan per share with an upper subscription limit of 6,000 shares for each account. Hebei Sitong New Metal Material Co., Ltd. (300428.SZ) issues shares at 14.71 yuan per share with an upper subscription limit of 8,000 shares for each account. Beijing Hengtong Innovation Luxwood Technology Co., Ltd. (300374.SZ) issues shares at 13.21 yuan per share with an upper subscription limit of 9,500 shares for each account. Jiangxi Selon Industrial Co., Ltd. (002748.SZ) issues shares at 15.38 yuan per share with an upper subscription limit of 12,000 shares for each account.
Full subscription of these shares needs 4.51 million yuan in total. Institutes advise Orient Securities as the first choice with expected high odds of success. Its assets management business is the highlight. Fulin Precision Machining, principally engaged in precision parts for engines, is also favored by institutes.
> First round of CSL sets new records, football industry enters positive cycle
> Agrochemical industry exhibition to convene, glyphosate enterprises consider increasing prices
> PV poverty alleviation might stimulate installed capacity, Shanghai Electric Group plans overall listing
> GRG Banking Equipment to invest in financial outsourcing platform, CECEP Wind-power to develop wind power
[XFA Focus]
○ First round of CSL sets new records, football industry enters positive cycle
------
The just-concluded first round of the Chinese Football Association Super League (CSL) in 2015 sets several new records: 8 games totally scored 27 goals, far larger than the 13 goals scored in the first of round of last year; the audience reached 230,000, which is also an all-time high in the matches of Chinese soccer professional league.
Comment: This is a natural response to the increased investment in Chinese football. With six football teams invested more than 500 million yuan, this session of CSL is called the “most expensive in history”. Intense competition leads to more goals and more exciting games and attracts more football funs to watch matches. The income of football clubs and events operation will surge and the whole football industry might enter a positive cycle. Shanghai International Port (Group) Co., Ltd. (600018.SH) fully controls SIPG Football Club and the senior management of the company recently indicates their optimism towards the potential profit of football industry; Greenland Group, which is seeking for back-door listing via Shanghai Jinfeng Investment Co., Ltd. (600606.SH), acquires shares of Shanghai Shenhua Football Club; Ledman Optoelectronic Co., Ltd. (300162.SZ) joins hands with NEO Capital Management (Group) Co., Ltd. and held the signing ceremony on sponsoring football clubs of Chinese First League on March 10.
[XFA Selection]
○ Yin Weimin, Minister of Human Resources and Social Security, indicated on March 10 that basic scheme concerning the investment and operation of endowment insurance funds has been formulated with restrictions on investment proportion in stock market.
○ The money-making effect of A-share market before and after the Spring Festival is attracting more OTC capitals to enter the stock market. The number of newly opened stock accounts in last week recorded a five-year new high.
○ China General Nuclear Power Group (CGN) announced on March 10 that two units of Hongyanhe Nuclear Power Station were approved. This is the real newly approved nuclear power project in China in recent years.
○PE investment favors mobile Internet industry in Feb. O2O market with online booking and offline service is most popular among investors.
○ The Mirror reported on March 10 that the investigation of 3.15 Evening by CCTV (consumer rights protection evening) this year will focus on Internet, traditional service area and goods for everyday consumption.
[Industry Information]
○ Agrochemical industry exhibition to convene, glyphosate enterprises consider increasing prices
------
The 16th China International Agrochemical Exhibition will be convened on March 11. XFA learns that domestic glyphosate enterprises consider increasing prices by around 5 percent together during the exhibition.
Comment: Multi-factors result in the tendency of price surge of glyphosate: for environmental protection, the newly appointed minister of environmental protection indicated recently that the strictest-ever environmental protection law shall become a sharp sword in pollution regulation. It will limit the expansion of glyphosate capacity and quicken the pace of industrial integration. For seasonal factor, the price of glyphosate sees an average surge of 5~10 percent in March in recent five years. Moreover, industrial inventory is relatively low. Glyphosate producers in A-share market include Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. (600389.SH), Zhejiang Xinan Chemical Industrial Group Co., Ltd. (600596.SH) and Sichuan Hebang Corporation Limited (603077.SH)
○ NEA promotes PV poverty alleviation, installed PV capacity might climb
------
The National Energy Administration (NEA) recently distributed the “Guideline of Pilot Implementation Scheme on PV Poverty Alleviation (revised draft)”. In terms of supporting measures, referenced policies proposed by the guideline are that local governments offer household and agriculture-facilities-based PV poverty alleviation projects with 35 percent initial investment subsidies; offer large-scale ground photovoltaic power stations with 20 percent initial investment subsidies; the State allocates initial investment subsidies with equal proportion.
Comment: In terms of policy measures, distributed photovoltaic systems including household and agricultural greenhouses, etc. gain the most initial assembly subsidies; as a result, it might stimulate the growth of photovoltaic capacity. Among A-share companies, Risen Energy Co., Ltd. (300118.SZ) and EGing Photovoltaic Technology Co., Ltd. (600537.SH) have invested in the construction of photovoltaic agricultural greenhouse integration projects.
[Companies Hotspot]
○ Shanghai Electric Group plans overall listing within two or three years
------
Huang Dinan, Chairman of the board of Shanghai Electric Group, told XFA on March 10 that the Group aims to achieve overall listing within two or three years and principally, all assets will be listed. In the future, all assets of the Group will be integrated, including part of the assets of the five listed companies under the Group, and injected to Shanghai Electric Group Company Limited (601727.SH; 02727.HK), which will act as the main body of overall listing.
[Announcement Interpretation]
○ GRG Banking Equipment to invest RMB3.7 bln in financial outsourcing platform, substantial shareholder and employees to fully subscribe
------
GRG Banking Equipment Co., Ltd. (002152.SZ) intends to issue 210 million shares at 17.76 yuan per share through private placement. Guangzhou Radio Group, its controlling shareholder, plans to subscribe 160 million shares and its employee shareholding plan proposes to subscribe 50 million shares. It will raise 3.73 billion yuan in total, of which 1.96 billion yuan will be used in the establishment of a nationwide financial outsourcing services platform and 1.77 billion yuan will supplement the working capital. The company indicated that the non-public issuing is a major step in the new round state-owned enterprises reform in Guangzhou City through the capital market.
○ CECEP Wind-power to raise RMB3 bln to develop wind power
------
CECEP Wind-power Corporation (601016.SH) plans to raise 3 billion yuan by issuing 315 million shares at no less than 9.51 yuan per share through private placement, of which 2.1 billion yuan will be invested in four wind power projects, including a project with 200,000 kilowatts in Dabancheng District in Urumuqi City. The remaining 900 million yuan will be used to pay off bank loans. The company will be equipped with another 550,000 kilowatts wind power installed capacity after the establishment of the projects. The latest stock price of the company was 10.7 yuan per share.
Comment: It is pointed out in the “Energy Development Strategy Action Plan (2014-2020)” issued by the State Council that China will vigorously development wind power and other clean energy. The wind power installed capacity is planned to reach 200 million kilowatts in 2020.
○ Jasan Holding to establish O2O platform project company with RMB100 mln
------
Zhejiang Jasan Holding Group Co., Ltd. (603558.SH), newly listed in January this year, will invest 100 million yuan in establishing a company as the subject for the establishment of the company’s O2O platform on its own. The platform will gather multi-brand products, including socks, underwear, pants, leisure wear and other close clothes, through its service brand “Jasan’s Home”. It will be a platform for the sale multi-brand and multi-category Kintwear both online and offline.
○ Souyute Fashion to invest in Huimei Fashion, Huimei Fashion to initiate IPO
------
Dongguan Souyute Fashion Co., Ltd. (002503.SZ) will strategically buy the shares Guangzhou Huimei Fashion Co., Ltd. with 324 million yuan of its own capitals and will hold 25.2 percent of its registered capitals. Huimei Fashion is a leader in the multi-brand Internet fashion and clothing industry with two brand groups, namely “Inman” and “To/Youth”. The total sales of the brands under Huimei Fashion ranked high in the women’s dress on tmall.com, vip.com, JD.com, dangdang.com and other large e-business platforms in 2014. Huimei Fashion recorded a net profit of 20.02 million yuan, 34.13 million yuan and 38.91 million yuan, respectively, from 2012 to 2014. It plans to submit its listing application on the A-share market to the China Securities Regulatory Commission by Dec. 31, 2015.
○ Sungrow Power to invest RMB100 mln in establishing new energy vehicle company
------
Sungrow Power Supply Co., Ltd. (300274.SZ) proposes to invest 100 million yuan in the establishment of Sungrow Power Energy Technology Co., Ltd., a wholly-owned subsidiary, with its own capitals. The new company will be principally engaged in the research and development and production of electric drivers and solar energy charging stations for new energy vehicles.
Comment: The business of the new company will have a synergistic effect with the existing businesses of Sungrow Power, including the photovoltaic inverter, wind energy convertor, energy storage and photovoltaic power stations. The company will speed up in the strategic development in the new energy industry.
[Trading Trends]
○ Five institutions buy Rainbow Fine Chemical
------
The trading volume ranking list on March 10 shows that five institutes totally bought Shenzhen Rainbow Fine Chemical Industry Co., Ltd. (002256.SZ) with 136 million yuan, accounting for 18 percent of its intraday turnover.
Comment: Rainbow Fine Chemical announced that it would raise 2.06 billion yuan through private placement to invest in the photovoltaic power station. Analysts believe that the National Energy Administration has proposed to increase supports to the photovoltaic industry at the beginning of the year. The profitability of the industry has been improving in recent years. The photovoltaic power station and air purification business is likely to beat the market expectation.
[Trade Alarms]
○ Ten new shares for subscription on March 11, including Orient Securities
------
Orient Securities Co., Ltd. (730958.SH) issues shares at 10.03 yuan per share with an upper subscription limit of 300,000 shares for each account. Shanghai LongYun Advertising & Media Co., Ltd. (732729.SH) issues shares at 26.61 yuan per share with an upper subscription limit of 6,000 shares for each account. Jiangsu Liba Enterprise Joint-Stock Co., Ltd. (732519.SH) issues shares at 13.69 yuan per share with an upper subscription limit of 8,000 shares for each account. Guangdong Songfa Ceramics Co., Ltd. (732268.SH) issues shares at 11.66 yuan per share with an upper subscription limit of 8,000 shares for each account. Ningbo Tuopu Group Co., Ltd. (780689.SH) issues shares at 11.37 yuan per share with an upper subscription limit of 38,000 shares for each account. Mianyang Fulin Precision Machining Co., Ltd. (300432.SZ) issues shares at 13.97 yuan per share with an upper subscription limit of 12,000 shares for each account. Beijing Chieftain Control Engineering Technology Co., Ltd. (300430.SZ) issues shares at 18.91 yuan per share with an upper subscription limit of 6,000 shares for each account. Hebei Sitong New Metal Material Co., Ltd. (300428.SZ) issues shares at 14.71 yuan per share with an upper subscription limit of 8,000 shares for each account. Beijing Hengtong Innovation Luxwood Technology Co., Ltd. (300374.SZ) issues shares at 13.21 yuan per share with an upper subscription limit of 9,500 shares for each account. Jiangxi Selon Industrial Co., Ltd. (002748.SZ) issues shares at 15.38 yuan per share with an upper subscription limit of 12,000 shares for each account.
Full subscription of these shares needs 4.51 million yuan in total. Institutes advise Orient Securities as the first choice with expected high odds of success. Its assets management business is the highlight. Fulin Precision Machining, principally engaged in precision parts for engines, is also favored by institutes.
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