[Today’s Guide]
> Opinions on accelerating innovation-driven development issued, research institutes reform to deepen
> Three departments support establishment of green data center, lithium carbonate prices continue to rise
> Billions of assets injected into Double Coin Holdings, Shanxi C&Y Phar. to control Guanghan Chinese Herbal Medicine
> High share conversion and dividend continuously favored, Goldcard Hi-tech bought through two institutional seats
[XFA Focus]
○ Opinions on accelerating innovation-driven development issued, research institutes reform to deepen
------
The Central Committee of the Communist Party of China (CPC) and the State Council issued the “Certain Opinions on Deepening System and Mechanism Reform and Accelerating the Implementation of Innovation-Driven Development Strategy” (“Opinions”) with 30 articles under nine categories on March 23. The “Opinions” propose that it will improve the regulation in the Internet, finance, environmental protection, medical service, culture, education and other industries and support and encourage the development of new industries and new business models. It also proposes to accelerate the reform of the ChiNext Board market, strengthen the financing, merger and acquisition, trading and other functions of the National Equities Exchange and Quotations (NEEQ), promote the deep marketization reform in the system transformation of research institutes with production and operation as main businesses and actively develop the mixed-ownership system through the introduction of social capitals or overall listing to promote the establishment of industrial technology alliances.
Comment: The “Opinions” explicitly encourages the overall listing of research institutes. The assets of listed companies with research institutes as substantial shareholders will be further strengthened. Research institutes believe that the military research institutes are the best quality assets of major military groups and the assets injection will greatly improve the value of listed companies. AVIC Aviation Engine Corporation Plc. (600893.SH) enjoys the monopoly position in the complete military engine industry under the China Aviation Engine Research Institute. As the unique listing platform of the Ninth Academy of China Aerospace Science and Technology Corporation (CASC), China Aerospace Times Electronics Co., Ltd. (600879.SH) see rapid growth in the unmanned aerial vehicles (UAVs) business. AVIC Aero-Engine Controls Co., Ltd. (000738.SZ) is principally engaged in the controlling system and components for engines under Aviation Industry Corporation of China’s 614 Institute.
○ Water Sector Strategic Forum to held March 27 with “Nine Water Regulations” as core topic
------
The Water Sector Strategic Forum 2015 will be held on March 27 with the “Action Plan for Water Pollution Prevention and Control” as one of the core topics. It is learnt that officials from the Ministry of Environmental Protection will interpret the latest environmental protection policies at the forum. Leading water enterprises in China, including Beijing Originwater Technology Co., Ltd. (300070.SZ), Beijing Capital Co., Ltd. (600008.SH) and Heilongjiang Interchina Watertreatment Co., Ltd. (600187.SH) will attend the forum.
Comment: Media reported the “Action Plan for Water Pollution Prevention and Control”, dubbed as “Nine Water Regulations”, is likely to be introduced next month. The pollution treatment with tough measures will become a “new normal”. The current criteria on the wastewater emission in China are relatively low. It is urgent to raise the criteria for wastewater treatment plants. The wastewater treatment industry will see huge development opportunities. It is estimated that the investment under the “Nine Water Regulations” will reach 2 trillion yuan.
[XFA Selection]
○ Chinese Premier Li Keqiang proposed to work hard to develop small and medium banks and privately-owned banks and accelerate the general convertibility of the RMB capital accounts on March 23.
○ The website of the Shanghai Housing Provident Fund Management Committee confirmed that it is speeding up in the preparation of specific plans on improving the efficiency in using the housing provident funds.
○ Media reported that the Bank of Hainan has appointed its senior management and determined the operation model and will strive to open by end-June.
○ The chairman of the board of directors of China Petroleum & Chemical Corporation (Sinopec, SNP.NYSE; SNP.LSE; 00386.HK; 600028.SH) indicated that it will test the online retail platform in April and shareholders have agreed the separate listing of the sales company.
○ The IOC evaluation commission will inspect Beijing to assess its bid plan on the Winter Olympics from March 24. The production suspension of peripheral steel factories will stimulate the hiking of steel prices.
[Industry Information]
○ Three departments support establishment of green data center, demand for energy-saving equipment to expand
------
The Ministry of Industry and Information Technology, the Government Offices Administration of the State Council and the National Energy Administration jointly issued the pilot work plan on the national green data center, proposing that 100 pilot green data centers will be established in 2017 and the energy efficiency at the pilot centers can improve by more than 8 percent on average.
Comment: The development of data centers in China has been booming in recent years, but the energy efficiency is far behind the internationally advanced level. The power consumption is 1.5 percent more than the total social power consumption with a huge potential in energy saving. Among A-share companies, Sichuan Yimikang Environmental Tech. Co., Ltd. (300249.SZ) is principally engaged in precision air-conditioners and won the “best green and energy-saving product of the data center 2013-2014”. United Electronics Co., Ltd. (002642.SZ) provides various large enterprises with green data center solutions.
○ Lithium carbonate prices continue to rise, hot sale of new energy vehicles expands demands
------
Various lithium carbonate enterprises raised their quoted prices by 4 percent to 13 percent recently and the average market price set a new high in recent years. The battery grade lithium carbonate saw greater volatility, which is mainly attributed to the hot sale of new energy vehicles.
Comment: The new energy vehicles have higher consumption for lithium than consumer electronics. The sale of new energy vehicles in China is speeding up. Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ) estimated during an inspection by institutes that the demand in the battery industry will increase about 15 percent without increase in supplies and the prices may hike again during the year. Sichuan Yahua Industrial Group Co., Ltd. (002497.SZ) and Tibet Mineral Development Co., Ltd. (000762.SZ) own lithium core resources.
[Companies Hotspot]
○ Taiji Computer likely to win bid for national exit and entry management information system
------
XFA learnt that Taiji Computer Corporation Limited (002368.SZ) is competitive in bidding for the national exit and entry management information system and is likely to win the bid. The system will be installed in the exit and entry management departments in 31 provinces and regions. The company will also provide maintenance to the national exit and entry management information system. Institutes are optimistic that the company will benefit from the “independence, security and controllability” trend of the information system of government departments.
○ Ningbo Tech-bank to develop Internet
------
Ningbo Tech-bank Co., Ltd. (002124.SZ) is inspected by multi institutions recently. The company tries to develop Internet, proposes the concept of “Intelligent Tech-bank” and focuses on the development of Internet of Things and big data, etc. It will also develop APP promoting sales performance.
[Announcement Interpretation]
○ Billions of assets injected into Double Coin Holdings, reform in Huayi Group accelerates
------
Double Coin Holdings Ltd. (600623.SH) plans to raise 11.6 billion yuan by issuing 931 million shares at 12.51 yuan per share to Shanghai Huayi (Group) Company to acquire 100 percent equities of Shanghai Huayi Energy Chemical Co., Ltd., Shanghai Huayi New Materials Co., Ltd., Shanghai Fine Chemical Co., Ltd., Shanghai Huayi Group Investment Co., Ltd. and Shanghai Tianyuan (Group) Co., Ltd. held by the latter, respectively, and 55 percent equities of Shanghai Huayi Information Technology Co., Ltd. and 30 percent equities of Shanghai Huayi Group Finance Co., Ltd. Meanwhile, the company plans to raise a supporting fund of 3.7 billion yuan by issuing 297 million shares at 12.56 yuan per share through private placement to invest in the 320,000 ton/year acrylic acid and esters project in Shanghai chemical district, the 1,200 ton/year catalyst project, the capital increase in Shanghai Fine Chemical Co., Ltd., Kunshan Baoyan Gas Co., Ltd. and Huayi Group Finance and to supplement working capital.
Comment: After the transaction, Huayi Group puts energy chemical, green tire, fine chemical and chemical service under a unified controlling platform to change the single tire business structure of the listed company so as to lay a solid foundation for forming and building an integrated industrial system. Huayi Group proposed the goal of being wholly listed last April. There are two listed companies under the Group, which are Shanghai 3F New Materials Company Limited (600636.SH) and Shanghai Chlor-Alkali Chemical Co., Ltd. (600618.SH). XFA reported on March 23 that the reform in Huayi Group has achieved substantial progress and Double Coin Holdings will be the main asset injection platform.
○ Shanxi C&Y Phar. to control Guanghan Chinese Herbal Medicine
------
Shanxi C&Y Pharmaceutical Group Co., Ltd. (300254.SZ) plans to acquire 52 percent equities of Sichuan Guanghan Chinese Herbal Medicine Co., Ltd. with 11.44 million yuan. Meanwhile, all shareholders of Guanghan Chinese Herbal Medicine will totally increase capital in the company by 13.91 million yuan and the company will increase 7.23 million yuan based on the shareholding proportion it holds. After the transaction, C&Y Pharmaceutical will hold 52 percent equities of Sichuan Guanghan Chinese Herbal Medicine, principally engaged in the manufacturing and sales of Chinese herbal medicines. Guanghan Chinese Herbal Medicine has its products sold in Sichuan Province and surrounding areas, and its “Fei Hong Brand” Arisaema Cum Bile has a long history.
At the same time, the company plans to acquire 20 percent equities of Hangzhou Baoling Group Co., Ltd. with its own capital. After the transaction, Baoling Group will become a wholly-owned subsidiary of the company.
○ Sanan Optoelectronics to develop communication microelectronics
------
Sanan Optoelectronics Co., Ltd. (600703.SH) plans to raise no more than 3.9 billion yuan from 10 specific targets including Sanan Group, controlled by Lin Xiucheng, actual controller of the company, by issuing 235 million shares at 16.58 yuan through private placement. 2.3 billion yuan of the raised funds will be invested in Xiamen photo-electricity industrialization (Phase II) project and 1.6 billion yuan will be invested in communication microelectronic devices (Phase I) project.
○ China Broadcast TV Network to control subsidiary of Topway Video Communication
------
Tianhua Media Co., Ltd., a subsidiary of Shenzhen Topway Video Communication Co., Ltd. (002238.SZ), plans to introduce China Broadcast TV Network Co., Ltd. as its controlling shareholder and the latter will acquire 46 percent equities of Tianhua Media through capital increase and hold 4.85 percent equities of the company through China Cable Television Network Co., Ltd., a company controlled by China Broadcast TV Network. After the transaction, China Broadcast TV Network totally holds 51 percent equities of the company and the shareholding of Topway Video Communication will decrease from 48.6 percent to 26.17 percent. China Broadcast TV Network promises that Tianhua Media will be authorized to use its national business operation license. This will help Tianhua Media a lot in its high-definition TV programs.
[Financial Reports Express]
○ Etrol Technologies and Yongtai Technology plan high share conversion and dividend
------
The net profit of Beijing Etrol Technologies Co., Ltd. (300370.SZ) sees a year-on-year growth of 9 percent in 2014 and it proposes a 5-for-10 bonus shares and a 10-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares. The net profit of Zhejiang Yongtai Technology Co., Ltd. (002326.SZ) sees a year-on-year growth of 320 percent in 2014 and it proposes a 18-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares.
○ Tong Ren Tang bought by Chongyang Investment
------
The net profit of Beijing Tong Ren Tang Co., Ltd. (600085.SH) sees a year-on-year growth of 16.41 percent in 2014. According to the annual report, two products under Shanghai Chongyang Investment Co., Ltd., a renowned private-equity firm, were among the top 10 shareholder of Tong Ren Tang in the fourth quarter of last year and they ranked as the second and tenth substantial shareholder. Calculated according to the lasted closing price, the stocks held by Chongyang Investment reach 910 million yuan.
Comment: More than 90 percent of Tong Ren Tang’s products are sold through OTC channel. As the basic medicine system launches, the prosperity of OTC industry drops largely in recent years. The industry might recover with the implementation of price surge of low-price medicines in the future. Tong Ren Tang, with significant brand value and strong pricing ability, will benefit from industrial reform.
[Data Speaks]
○ High share conversion and dividend continuously favored, two high-dividend companies not surge much
------
Stocks with high share conversion and dividend are continuously favored recently, and stocks like Jilin Yongda Group Co., Ltd. (002622.SZ), Wenfeng Great World Chain Development Corporation (601010.SH), etc. soar continuously by the daily 10 percent limit. According to the statistics made by XFA, totally 155 companies have launched the scheme proposing over 8-for-10 conversion of capital surplus into shares and 129 of them have not implemented the scheme yet. Both Shandong Bohui Paper Industry Co., Ltd. (600966.SH) and Hebei Jianxin Chemical Co., Ltd. (300107.SZ), whose latest stock prices are 9.28 yuan per share and 14.21 yuan per share, respectively, propose a 10-for-10 conversion of capital surplus into shares and they do not surge much.
[Trading Trends]
○ Goldcard Hi-tech bought through two institutional seats
------
The trading volume ranking list on March 23 shows that Goldcard Hi-tech Co., Ltd. (300349.SZ) was bought through two institutional seats with a total of 48.08 million yuan, accounting for 13.39 percent of its intraday turnover. And another institutional seat sold 3.55 million yuan.
Comment: Research institutions believe that the company will focus on external expansion of gas business in the future and actively explore Internet of Things smart gas system business at the same time. Multi places will launch at the end of 2015 and this helps to stimulate the demand on smart gas meter.
> Opinions on accelerating innovation-driven development issued, research institutes reform to deepen
> Three departments support establishment of green data center, lithium carbonate prices continue to rise
> Billions of assets injected into Double Coin Holdings, Shanxi C&Y Phar. to control Guanghan Chinese Herbal Medicine
> High share conversion and dividend continuously favored, Goldcard Hi-tech bought through two institutional seats
[XFA Focus]
○ Opinions on accelerating innovation-driven development issued, research institutes reform to deepen
------
The Central Committee of the Communist Party of China (CPC) and the State Council issued the “Certain Opinions on Deepening System and Mechanism Reform and Accelerating the Implementation of Innovation-Driven Development Strategy” (“Opinions”) with 30 articles under nine categories on March 23. The “Opinions” propose that it will improve the regulation in the Internet, finance, environmental protection, medical service, culture, education and other industries and support and encourage the development of new industries and new business models. It also proposes to accelerate the reform of the ChiNext Board market, strengthen the financing, merger and acquisition, trading and other functions of the National Equities Exchange and Quotations (NEEQ), promote the deep marketization reform in the system transformation of research institutes with production and operation as main businesses and actively develop the mixed-ownership system through the introduction of social capitals or overall listing to promote the establishment of industrial technology alliances.
Comment: The “Opinions” explicitly encourages the overall listing of research institutes. The assets of listed companies with research institutes as substantial shareholders will be further strengthened. Research institutes believe that the military research institutes are the best quality assets of major military groups and the assets injection will greatly improve the value of listed companies. AVIC Aviation Engine Corporation Plc. (600893.SH) enjoys the monopoly position in the complete military engine industry under the China Aviation Engine Research Institute. As the unique listing platform of the Ninth Academy of China Aerospace Science and Technology Corporation (CASC), China Aerospace Times Electronics Co., Ltd. (600879.SH) see rapid growth in the unmanned aerial vehicles (UAVs) business. AVIC Aero-Engine Controls Co., Ltd. (000738.SZ) is principally engaged in the controlling system and components for engines under Aviation Industry Corporation of China’s 614 Institute.
○ Water Sector Strategic Forum to held March 27 with “Nine Water Regulations” as core topic
------
The Water Sector Strategic Forum 2015 will be held on March 27 with the “Action Plan for Water Pollution Prevention and Control” as one of the core topics. It is learnt that officials from the Ministry of Environmental Protection will interpret the latest environmental protection policies at the forum. Leading water enterprises in China, including Beijing Originwater Technology Co., Ltd. (300070.SZ), Beijing Capital Co., Ltd. (600008.SH) and Heilongjiang Interchina Watertreatment Co., Ltd. (600187.SH) will attend the forum.
Comment: Media reported the “Action Plan for Water Pollution Prevention and Control”, dubbed as “Nine Water Regulations”, is likely to be introduced next month. The pollution treatment with tough measures will become a “new normal”. The current criteria on the wastewater emission in China are relatively low. It is urgent to raise the criteria for wastewater treatment plants. The wastewater treatment industry will see huge development opportunities. It is estimated that the investment under the “Nine Water Regulations” will reach 2 trillion yuan.
[XFA Selection]
○ Chinese Premier Li Keqiang proposed to work hard to develop small and medium banks and privately-owned banks and accelerate the general convertibility of the RMB capital accounts on March 23.
○ The website of the Shanghai Housing Provident Fund Management Committee confirmed that it is speeding up in the preparation of specific plans on improving the efficiency in using the housing provident funds.
○ Media reported that the Bank of Hainan has appointed its senior management and determined the operation model and will strive to open by end-June.
○ The chairman of the board of directors of China Petroleum & Chemical Corporation (Sinopec, SNP.NYSE; SNP.LSE; 00386.HK; 600028.SH) indicated that it will test the online retail platform in April and shareholders have agreed the separate listing of the sales company.
○ The IOC evaluation commission will inspect Beijing to assess its bid plan on the Winter Olympics from March 24. The production suspension of peripheral steel factories will stimulate the hiking of steel prices.
[Industry Information]
○ Three departments support establishment of green data center, demand for energy-saving equipment to expand
------
The Ministry of Industry and Information Technology, the Government Offices Administration of the State Council and the National Energy Administration jointly issued the pilot work plan on the national green data center, proposing that 100 pilot green data centers will be established in 2017 and the energy efficiency at the pilot centers can improve by more than 8 percent on average.
Comment: The development of data centers in China has been booming in recent years, but the energy efficiency is far behind the internationally advanced level. The power consumption is 1.5 percent more than the total social power consumption with a huge potential in energy saving. Among A-share companies, Sichuan Yimikang Environmental Tech. Co., Ltd. (300249.SZ) is principally engaged in precision air-conditioners and won the “best green and energy-saving product of the data center 2013-2014”. United Electronics Co., Ltd. (002642.SZ) provides various large enterprises with green data center solutions.
○ Lithium carbonate prices continue to rise, hot sale of new energy vehicles expands demands
------
Various lithium carbonate enterprises raised their quoted prices by 4 percent to 13 percent recently and the average market price set a new high in recent years. The battery grade lithium carbonate saw greater volatility, which is mainly attributed to the hot sale of new energy vehicles.
Comment: The new energy vehicles have higher consumption for lithium than consumer electronics. The sale of new energy vehicles in China is speeding up. Jiangxi Ganfeng Lithium Co., Ltd. (002460.SZ) estimated during an inspection by institutes that the demand in the battery industry will increase about 15 percent without increase in supplies and the prices may hike again during the year. Sichuan Yahua Industrial Group Co., Ltd. (002497.SZ) and Tibet Mineral Development Co., Ltd. (000762.SZ) own lithium core resources.
[Companies Hotspot]
○ Taiji Computer likely to win bid for national exit and entry management information system
------
XFA learnt that Taiji Computer Corporation Limited (002368.SZ) is competitive in bidding for the national exit and entry management information system and is likely to win the bid. The system will be installed in the exit and entry management departments in 31 provinces and regions. The company will also provide maintenance to the national exit and entry management information system. Institutes are optimistic that the company will benefit from the “independence, security and controllability” trend of the information system of government departments.
○ Ningbo Tech-bank to develop Internet
------
Ningbo Tech-bank Co., Ltd. (002124.SZ) is inspected by multi institutions recently. The company tries to develop Internet, proposes the concept of “Intelligent Tech-bank” and focuses on the development of Internet of Things and big data, etc. It will also develop APP promoting sales performance.
[Announcement Interpretation]
○ Billions of assets injected into Double Coin Holdings, reform in Huayi Group accelerates
------
Double Coin Holdings Ltd. (600623.SH) plans to raise 11.6 billion yuan by issuing 931 million shares at 12.51 yuan per share to Shanghai Huayi (Group) Company to acquire 100 percent equities of Shanghai Huayi Energy Chemical Co., Ltd., Shanghai Huayi New Materials Co., Ltd., Shanghai Fine Chemical Co., Ltd., Shanghai Huayi Group Investment Co., Ltd. and Shanghai Tianyuan (Group) Co., Ltd. held by the latter, respectively, and 55 percent equities of Shanghai Huayi Information Technology Co., Ltd. and 30 percent equities of Shanghai Huayi Group Finance Co., Ltd. Meanwhile, the company plans to raise a supporting fund of 3.7 billion yuan by issuing 297 million shares at 12.56 yuan per share through private placement to invest in the 320,000 ton/year acrylic acid and esters project in Shanghai chemical district, the 1,200 ton/year catalyst project, the capital increase in Shanghai Fine Chemical Co., Ltd., Kunshan Baoyan Gas Co., Ltd. and Huayi Group Finance and to supplement working capital.
Comment: After the transaction, Huayi Group puts energy chemical, green tire, fine chemical and chemical service under a unified controlling platform to change the single tire business structure of the listed company so as to lay a solid foundation for forming and building an integrated industrial system. Huayi Group proposed the goal of being wholly listed last April. There are two listed companies under the Group, which are Shanghai 3F New Materials Company Limited (600636.SH) and Shanghai Chlor-Alkali Chemical Co., Ltd. (600618.SH). XFA reported on March 23 that the reform in Huayi Group has achieved substantial progress and Double Coin Holdings will be the main asset injection platform.
○ Shanxi C&Y Phar. to control Guanghan Chinese Herbal Medicine
------
Shanxi C&Y Pharmaceutical Group Co., Ltd. (300254.SZ) plans to acquire 52 percent equities of Sichuan Guanghan Chinese Herbal Medicine Co., Ltd. with 11.44 million yuan. Meanwhile, all shareholders of Guanghan Chinese Herbal Medicine will totally increase capital in the company by 13.91 million yuan and the company will increase 7.23 million yuan based on the shareholding proportion it holds. After the transaction, C&Y Pharmaceutical will hold 52 percent equities of Sichuan Guanghan Chinese Herbal Medicine, principally engaged in the manufacturing and sales of Chinese herbal medicines. Guanghan Chinese Herbal Medicine has its products sold in Sichuan Province and surrounding areas, and its “Fei Hong Brand” Arisaema Cum Bile has a long history.
At the same time, the company plans to acquire 20 percent equities of Hangzhou Baoling Group Co., Ltd. with its own capital. After the transaction, Baoling Group will become a wholly-owned subsidiary of the company.
○ Sanan Optoelectronics to develop communication microelectronics
------
Sanan Optoelectronics Co., Ltd. (600703.SH) plans to raise no more than 3.9 billion yuan from 10 specific targets including Sanan Group, controlled by Lin Xiucheng, actual controller of the company, by issuing 235 million shares at 16.58 yuan through private placement. 2.3 billion yuan of the raised funds will be invested in Xiamen photo-electricity industrialization (Phase II) project and 1.6 billion yuan will be invested in communication microelectronic devices (Phase I) project.
○ China Broadcast TV Network to control subsidiary of Topway Video Communication
------
Tianhua Media Co., Ltd., a subsidiary of Shenzhen Topway Video Communication Co., Ltd. (002238.SZ), plans to introduce China Broadcast TV Network Co., Ltd. as its controlling shareholder and the latter will acquire 46 percent equities of Tianhua Media through capital increase and hold 4.85 percent equities of the company through China Cable Television Network Co., Ltd., a company controlled by China Broadcast TV Network. After the transaction, China Broadcast TV Network totally holds 51 percent equities of the company and the shareholding of Topway Video Communication will decrease from 48.6 percent to 26.17 percent. China Broadcast TV Network promises that Tianhua Media will be authorized to use its national business operation license. This will help Tianhua Media a lot in its high-definition TV programs.
[Financial Reports Express]
○ Etrol Technologies and Yongtai Technology plan high share conversion and dividend
------
The net profit of Beijing Etrol Technologies Co., Ltd. (300370.SZ) sees a year-on-year growth of 9 percent in 2014 and it proposes a 5-for-10 bonus shares and a 10-for-10 conversion of capital surplus into shares combined with 1.5 yuan dividend for every 10 shares. The net profit of Zhejiang Yongtai Technology Co., Ltd. (002326.SZ) sees a year-on-year growth of 320 percent in 2014 and it proposes a 18-for-10 conversion of capital surplus into shares combined with 1 yuan dividend for every 10 shares.
○ Tong Ren Tang bought by Chongyang Investment
------
The net profit of Beijing Tong Ren Tang Co., Ltd. (600085.SH) sees a year-on-year growth of 16.41 percent in 2014. According to the annual report, two products under Shanghai Chongyang Investment Co., Ltd., a renowned private-equity firm, were among the top 10 shareholder of Tong Ren Tang in the fourth quarter of last year and they ranked as the second and tenth substantial shareholder. Calculated according to the lasted closing price, the stocks held by Chongyang Investment reach 910 million yuan.
Comment: More than 90 percent of Tong Ren Tang’s products are sold through OTC channel. As the basic medicine system launches, the prosperity of OTC industry drops largely in recent years. The industry might recover with the implementation of price surge of low-price medicines in the future. Tong Ren Tang, with significant brand value and strong pricing ability, will benefit from industrial reform.
[Data Speaks]
○ High share conversion and dividend continuously favored, two high-dividend companies not surge much
------
Stocks with high share conversion and dividend are continuously favored recently, and stocks like Jilin Yongda Group Co., Ltd. (002622.SZ), Wenfeng Great World Chain Development Corporation (601010.SH), etc. soar continuously by the daily 10 percent limit. According to the statistics made by XFA, totally 155 companies have launched the scheme proposing over 8-for-10 conversion of capital surplus into shares and 129 of them have not implemented the scheme yet. Both Shandong Bohui Paper Industry Co., Ltd. (600966.SH) and Hebei Jianxin Chemical Co., Ltd. (300107.SZ), whose latest stock prices are 9.28 yuan per share and 14.21 yuan per share, respectively, propose a 10-for-10 conversion of capital surplus into shares and they do not surge much.
[Trading Trends]
○ Goldcard Hi-tech bought through two institutional seats
------
The trading volume ranking list on March 23 shows that Goldcard Hi-tech Co., Ltd. (300349.SZ) was bought through two institutional seats with a total of 48.08 million yuan, accounting for 13.39 percent of its intraday turnover. And another institutional seat sold 3.55 million yuan.
Comment: Research institutions believe that the company will focus on external expansion of gas business in the future and actively explore Internet of Things smart gas system business at the same time. Multi places will launch at the end of 2015 and this helps to stimulate the demand on smart gas meter.
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